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HomeMy WebLinkAboutOrdinance-2001-1216 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER <;i 1 pr Council Bill No 06-2001 Ordinance No /'/2/ (; Series of 2001 TITLE AN ORDINANCE APPROVING THE RENEWAL OF A CABLE TELEVISION FRANCHISE, AND IN CONNECTION THEREWITH, REPEALING AND REENACTING SECTION 23-1 OF THE CODE OF LAWS WHEREAS, the City Council has previously approved a cable television franchise, and WHEREAS, said franchise has expired and pursuant to its terms is continued in force until renewed, and WHEREAS, the Council wishes to approve a renewal of the franchise BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO Section 1. Cable Television Franchise Renewed The cable franchise agreement between TCI Cablevision of Colorado, Inc., attached hereto as Exhibit 1, and fully incorporated herein by this reference, which agreement renews the cable television franchise within the City according to the terms and conditions contained therein, is hereby approved and the Mayor and City Clerk are authorized and directed to execute the same Section 2. Section 23-1 of the Wheat Ridge Code of Laws is hereby repealed and reenacted to read Sec. 23-1. Cable Television Franchise The cable television franchise within the City approved by Ordinance /~/b, Series of 2001, effective as of March 19, 2001, and expiring March 19, 2013, sets forth the contractual provisionsgovering the cable television service provided by the Franchise The customer service and protection standards pertaining to such service, as set forth, inter alia, in Ordinance 973, Series 1994, are recognized as continuing in full force and effect to the same extent as set out in full in this Code GED\53027\371664 01 Section 3. Effective Date Pursuant to Section 5 11 of the Charter, this ordinance shall be effective upon adoption Section 4. Safety Clause. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained Section 5. Severability: ConflictinQ Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby All other ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 to o on this 26th day of February , 2001, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for March 19 , 2001, at 700 o'clock pm, in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of 8 to 0 , this 19th day of March ,2001 SIGNED by the Mayor on this 20th day of March ,2001 ATTEST ~ Qt~ Wanda Sang, City C~ --"I GED\53027\371664.01 2 First Publication March 2, 2001 Second Publication March 23, 2001 Wheat Ridge Transcript Effective Date March 19, 2001 GED\53027\371664 01 Wheat Ridge Code of Laws Ordinance 1216, Series 2001 Exhibit 1 Cable Franchise Agreement Between TCI Cablevision of Colorado, Inc. And City of Wheat Ridge APPROVED ON SECOND READING March 19,2001 TABLE OF CONTENTS SECTION 1. DEFINITIONS AND EXHIBITS .............. Page ............ ........... 1 GRANT EFFECTIVE DATE AND TERM OF FRANCHISE FRANCHISE NONEXCLUSIVE .......... REGULATORY PARITY No PRIORITY POLICE POWERS ........... GRANTEE RESERVATION OF RIGHTS FAMILIARITY WITH FRANCHISE EFFECT OF ACCEPTANCE ..... 6 6 7 ...8 8 .8 9 .9 .9 10 SECTION 2. GRANT OF FRANCHiSE........ 2 1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 SECTION 3 FRANCHISE FEE PAYMENT AND FINANCIAL CONTROLS .............11 3.1 3.2 3.3 34 35 3 6 3.7 38 39 3 10 3 11 3 12 3 13 3 14 ...... 11 .....11 11 12 ......12 12 12 ..12 123 13 13 .......13 14 14 FRANCHISE FEE ............. PAYMENTS ... ......... .. ACCEPTANCE OF PAYMENT AND RECOMPUTATION QUARTERLY FRANCHISE FEE REPORTS ANNUAL FRANCHISE FEE REPORTS AUDITS ..... LATE PAYMENTS. UNDERPA YMENTS ALTERNATIVE COMPENSATION ............ . MAXIMUM LEGAL COMPENSATION ...... . . ADDITIONAL COMMITMENTS NOT FRANCHISE FEE PAYMENTS ....... TAX liABILITY.. ......................... FINANCIAL RECORDS. ..................... PAYMENT ON TERMINATION .... . . ................... SECTION 4. ADMINISTRATION AND REGULATION ................................ 14 4 1 AUTHORITY.. . . ........ . . 13 42 RATES AND CHARGES .................................. . 14 43 RATE DISCRIMINATION .......... ..14 44 FILING OF RATES AND CHARGES 15 45 CROSS SUBSIDIZATION . .......16 46 RESERVED AUTHORITY ......16 47 TIME liMITS STRICTLY CONSTRUED .. .. ....................... . 16 48 REGULATIONS PROMULGATED BY CITY COUNCIL .......................... .... 16 49 FRANCHISE MODIFICATION PROCEDURE ....... ................................. . 16 4.10 PERFORMANCE EVALUATIONS. 17 4 11 FORCE MAJEURE .... 17 INDEMNIFICATION INSURANCE 18 18 19 SECTION 5. FINANCIAL AND INSURANCE REQUIREMENTS ... 5 1 5 2 5 3 54 lETTER OF CREDIT CONSTRUCTION BOND ...... 21 ......22 SECTION 6 CUSTOMER SERVICE STANDARDS................ ................. .....22 6 1 CUSTOMER SERVICE STANDARDS ............. ........... .............. .22 SECTION 7 REPORTS AND RECORDS.... 7 1 7 2 7 3 74 7 5 7 6 77 78 OPEN RECORDS........ CONFIDENTIALITY RECORDS REQUIRED ANNUAL REPORTS COPIES OF FEDERAL AND STATE REPORTS COMPLAINT FILE AND REPORTS FAILURE TO REPORT FALSE STATEMENTS SECTION 8. PROGRAMMING .... 8 1 8 2 83 84 8 5 86 87 BROAD PROGRAMMING CATEGORIES DELETION OR REDUCTION OF BROAD PROGRAMMING CATEGORIES. ASCERTAINMENT OF PROGRAMMING AND CUSTOMER SATiSFACTION..... CENSORSHIP PROHIBITED PARENTAL CONTROL DEVICE CONTINUITY OF SERVICE MANDATORY.. CABLE BILL INSERTS SECTION 9. ACCESS... .......... ............ . 9.1 9 2 93 94 95 9 6 97 9.8 99 9 10 9 11 CAPITAL CONTRIBUTION INITIAL ACCESS CHANNELS ADDITIONAL ACCESS CHANNELS UNDERUTILlZED ACCESS CHANNELS CHANGE IN TECHNOLOGY... . MANAGEMENT AND CONTROL OF ACCESS CHANNELS.... ACCESS CHANNELS ON BASIC SERViCE.... ACCESS CHANNEL ASSIGNMENTS. RELOCATION OF ACCESS CHANNELS ACCESS INTERCONNECTION RETURN LINES 10 1 SECTION 10. INSTITUTIONAL NETWORK ............ PRIVATE NETWORK. SECTION 11. GENERAL RIGHT-OF-WAY USE AND CONSTRUCTION 11 1 11 2 11.3 11.4 11 5 116 CONDITIONS OF RIGHTS-OF-WAY OCCUPANCY. GIS MAPPING HAZARDOUS SUBSTANCES ...... lOCATES . NOTICE TO PRIVATE PROPERTY OWNERS UNDERGROUND CONSTRUCTION AND USE OF POLES -11- . ....... 22 22 ....23 23 .24 24 25 25 25 .......... 26 ...... 26 .....26 27 27 .27 28 28 ............28 28 29 ...29 ... 29 30 301 .31 . 31 .... 31 .. ..31 32 . ..32 .... .32 .......... 323 33 .34 34 34 35 35 11.7 11.8 11 9 11 10 11 11 11 12 11 13 11.14 11 15 11 16 11 17 11 18 11 19 1120 11 21 11 22 ..36 .36 37 37 ...............37 37 ..38 ..39 40 40 41 ....41 41 42 42 42 UNDERGROUNDING OF MULTIPLE DWELLING UNIT DROPS.. BURIAL STANDARDS ELECTRICAL BONDING PREWIRING REPAIR AND RESTORATION OF PROPERTY USE OF CONDUITS BY THE CITY COMMON USERS .... ACQUISITION OF FACILITIES. MOVEMENT OF CABLE SYSTEM FACILITIES FOR CITY PURPOSES ...... MOVEMENT OF CABLE SYSTEM FACILITIES FOR OTHER FRANCHISE HOLDERS TREE TRIMMING STOP WORK ..... WORK OF CONTRACTORS AND SUBCONTRACTORS DISCONTINUING USE/REMOVAL OF FACILITIES. COMPLIANCE WITH CODE OF LAWS REIMBURSEMENT OF GRANTEE COSTS.... SECTION 12 CABLE SYSTEM CONFIGURATION, TECHNICAL STANDARDS AND TESTING 423 12 1 12 2 123 124 12 5 12.6 127 SUBSCRIBER NETWORK.. . STATE OF THE ART STANDBY POWER ..... EMERGENCY ALERT CAPABILITY TECHNICAL PERFORMANCE.... CABLE SYSTEM PERFORMANCE TESTING ADDITIONAL TESTS ............ .. 43 43 43 ..44 44 44 46 SECTION 13. SERVICE EXTENSION, INTERCONNECTION AND SERVICE TO PUBLIC BUILDINGS ....... ......... ............. .............. ............. . .......... 46 13 1 132 13 3 134 UNIVERSAL SERVICE SERVICE AVAILABILITY... ............ ........ . INTERCONNECTION WITH OTHER CABLE SYSTEMS CONNECTION OF PUBLIC FACILITIES... .46 .467 ..... 49 .50 ............ 50 50 ........ 51 53 53 54 545 55 55 55 56 SECTION 14 FRANCHISE VIOLATIONS. ................ . 14 1 142 143 144 145 146 14.7 148 14.9 14 10 PROCEDURES FOR REMEDYING FRANCHISE VIOLATIONS REVOCATION ........ .. PROCEDURES IN THE EVENT OF TERMINATION OR REVOCATION PURCHASE OF CABLE SYSTEM . ........... RECEIVERSHIP AND FORECLOSURE .... .................... . NO MONETARY RECOURSE AGAINST THE CITY ALTERNATIVE REMEDIES ASSESSMENT OF MONETARY DAMAGES EFFECT OF ABANDONMENT WHAT CONSTITUTES ABANDONMENT. -111- RENEWAL.... ., ... ..... ... ... ... .., TRANSFER AND CHANGE OF CONTROLS. .. ......... .... ...56 .. 56 56 SECTION 15 FRANCHISE RENEWAL AND TRANSFER ....... 15 1 15.2 SECTION 16. MISCELLANEOUS PROVISIONS.. ., 16.1 162 163 164 165 166 16 7 168 169 16.10 16.11 16 12 COMPLIANCE WITH STATE AND FEDERAL LAWS .. NOTICE ...... ....... NONDISCRIMINATION IN EMPLOYMENT. COSTS TO BE BORNE BY GRANTEE . . BINDING EFFECT.. .... JURISDICTION.. ....................... NO JOINT VENTURE ... WAIVER .. . .... ... RELEASE AND WAIVER OF CLAIMS UNDER PRIOR FRANCHISE .. ENTIRE AGREEMENT... ........... SEVERABILITY DESCRIPTIVE HEADINGS. 57 .57 .. 57 .58 ..58 .59 .59 59 59 .. 59 . ..60 . 60 . ..60 Exhibit A. Members of the Greater Metro Telecommunications Consortium Exhibit B. Customer Service Standards Exhibit C. List of Equipment -IV- CABLE FRANCHISE AGREEMENT This Franchise is entered into by and between the City of Wheat Ridge, Colorado hereinafter referred to as "City" and TCI Cablevision of Colorado, Inc , a Colorado corporation, hereinafter referred to as the "Grantee." SECTION 1. DEFINITIONS For the purpose of this Franchise, the following terms, phrases, words and their derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is mandatory, and "may" is permissive. Words not defined shall be given their common and ordinary meaning 1 . 1 "Access" means the availability for noncommercial use by various agencies, institutions, organizations, groups and individuals in the community, including the City and its designees, of the Cable System to acquire, create, receive, and distribute video Cable Services and other services and signals as permitted under applicable law including, but not limited to' (A) "Public Access" means Access where community-based, noncommercial organizations, groups or Individual members of the general public, on a nondiscriminatory basis, are the primary users. (B) "Educational Access" means Access where schools are the primary users having editorial control over programming and services. For purposes of this definition, "school" means any state-accredited educational institution, public or private, including, for example, primary and secondary schools, colleges and universities. (C) "Government Access" means Access where governmental institutions or their designees are the primary users having editorial control over programming and services. 1.2 "Affiliate," when used in connection with Grantee, means any Person who owns or controls, is owned or controlled by, or is under common ownership or control with, Grantee, or its successor corporations. 1.3 "Basic Service" means the lowest priced Tier of Cable Service that includes local broadcast stations. 1 4 "Cable Act" means the Cable Communications Policy Act of 1984 as amended by the Cable Television Consumer Protection and Competition Act of 1992 and the Telecommunications Act of 1996, and including regulations -1 - promulgated pursuant to such Act and as it may be amended, and any future federal cable television laws, acts or regulations. 1.5 "Cable Internet Service" means any Cable Service offered by Grantee whereby Persons receive access to the Internet through the Cable System. 1.6 "Cable Operator" means any Person or groups of Persons, including Grantee, who provide(s) Cable Service over the Cable System and directly or through one or more Affiliates owns a significant Interest in such Cable System or who otherwise control(s) or is (are) responsible for, through any arrangement, the management and operation of the Cable System. 1.7 "Cable Service" means the one-way transmission to Subscribers of video programming or other programming service, and Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. To the extent consistent with applicable law, Cable Service shall include Cable Internet Service and other interactive services such as, but not limited to, game Channels, information services and enhanced services made available to Subscribers by the Grantee 1.8 "Cable System" means Grantee's facility, consisting of a set of closed transmissions 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 one or more television broadcast stations; (B) a facility that serves Subscribers without using any Rights-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 federal Communications Act (47 U.S.C. 201 et seq.), except that such facility shall be considered a Cable System (other than for purposes of Section 621 (c) (47 U S C. 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 federal statutes; or (E) any facilities of any electric utility used solely for operating its electric utility systems. 1.9 "Channel" means a portion of the electromagnetic frequency spectrum which is used in the Cable System and which is capable of delivering a television channel (as television channel is defined by the FCC by regulation) 1 10 "City" means the City of Wheat Ridge, a Colorado municipal corporation 1.11 "City Attorney" means the chief legal officer of the City of Wheat Ridge, Colorado. -2- 1 12 "City Council or Council" means the present governing body of the City or any successor to the legislative powers of the present City Council 1.13 "City Manager" means the chief administrative officer of the City of Wheat Ridge, Colorado, or his or her designee. 1.14 "Commercial Subscribers" means any Subscribers other than Residential Subscribers. 1.15 "Downstream" means carrying a transmission from the Headend to remote points on the Cable System or to Interconnection points on the Cable System. 1.16 "Dwelling Unit" means any building, or portion thereof, that has independent living facilities, including provisions for cooking, sanitation and sleeping, and that is designed for residential occupancy. Buildings with more than one set of facilities for cooking shall be considered Multiple Dwelling Units unless the additional facilities are clearly accessory. 1.17 "Expanded Basic Service" means the Tier of optional programming services, which is the level of Cable Service received by Subscribers above Basic Service, and does not include Premium Services. video most 1 .18 "FCC" means the Federal Communications Commission of the United States Government or its lawful successor. 1 .19 "Fiber Optic" means a transmission medium of optical fiber cable, along with all associated electronics and equipment, capable of carrying Cable Service or Institutional Network service by means of electric lightwave Impulses. 1.20 "Franchise" means this document, which grants nonexclusive rights pursuant to the Wheat Ridge City Charter to construct and operate the Cable System in the Rights-of-Way. 1.21 of the City, Franchise. "Franchise Area" means the area within the jurisdictional boundaries including any areas annexed by the City during the term of this 1.22 "GAAP" means generally accepted accounting principles. 1.23 "Greater Metro Telecommunications Consortium" or "GMTC" means a Colorado agency, formed by intergovernmental agreement between franchising authorities in the greater Denver metropolitan area to communicate with regard to franchising matters collectively and cooperatively. The official list of members of the GMTC is contained in Exhibit A, which Exhibit the City may update from time -3- to time at its sole discretion as additional franchlsmg authorities join, or separate from, the GMTC. 1.24 "Gross Revenues" means any and all revenue received by the Grantee, or by any other entity that IS a Cable Operator of the Cable System including Grantee's Affiliates, from the operation of the Cable System to provide Cable Services. Gross Revenues include, by way of illustration and not limitation, monthly fees charged Subscribers for BasIc Service; any expanded Tiers of Cable Service; optional Premium Services, installation, disconnection, reconnection and change-in-service fees; Leased Access Channel fees; all Cable Service lease payments from the Cable System; late fees and administrative fees; fees, payments or other consideration received by the Grantee from programmers for carriage of programming on the Cable System and accounted for as revenue under GAAP; revenues from rentals of converters, remote controls or other Cable System equipment used to receive Cable Service, revenues from the sale of Cable System equipment used to provide Cable Service that is not available from retail outlets; advertising revenues; the fair market value of consideration received by the Grantee for use of the Cable System to provide Cable Service and accounted for as revenue under GAAP; revenues from program guides, revenue from data transmissions to the extent these transmissions are considered Cable Services under federal law, additional outlet fees; revenue from Cable Internet Service to the extent thiS service is considered a Cable Service under federal law; franchise fees; revenue from interactive services to the extent they are considered Cable Services under federal law; revenue from the sale or carriage of other Cable Services on the Cable System; and revenue from home shopping, bank-at-home Channels and other revenue-sharing arrangements. Gross Revenues shall include revenue received by any entity other than the Grantee where necessary to prevent evasion or avoidance of the obligation under this Franchise to pay the franchise fees. Gross Revenues shall not include (i) to the extent consistent With GAAP, Bad Debt; provided, however, that all or part of any such Bad Debt that is written off but subsequently collected shall be included in Gross Revenues in the period collected, (ii) the Capital Contnbutions specified in subsections 9.1 and 9 2; or (iii) any taxes on services furnished by the Grantee which are imposed directly on any Subscriber or user by the State, City or other governmental unit and which are collected by the Grantee on behalf of said governmental unit. The franchise fee is not such a tax. The parties intend for the definition of Gross Revenues to be as inclusive as possible consistent with existing applicable law. If there is a change in federal law subsequent to the Effective Date of this Franchise, such change shall not impact this Gross Revenues definition unless the change specifically preempts the affected portion of the definition above. 1.25 "Headend" means any facility for signal reception and dissemination on a Cable System, including cables, antennas, wires, satellite dishes, monitors, sWltchers, modulators, processors for broadcast signals, equipment for the -4- Interconnection of the Cable System with adjacent cable systems and Interconnection of any networks which are part of the Cable System, and all other related equipment and facilities. 1 26 "Hub" means an Intermediary exchange point In the signal distribution portion of the Cable System, located between the Headend and the Nodes. 1.27 "Institutional Network" or "I-Net" means that part of the Cable System facilities or capacity designed principally for connecting public facilities and organizations within the Franchise Area as may be described in greater detail in this Franchise. The I-Net is a private communications network governed by this Franchise and the Cable Act, and may not be used to provide Telecommunications Services unless by separate agreement between the City and Grantee. Qualified users of the I-Net shall not be permitted to resell I-Net capability. Nothing in this definition prevents the Institutional Network from being used to send communications to or receive communications from Subscribers or the general public, by remote terminals or otherwise including, by way of example and not limitation, through connections between the Institutional Network and the Subscriber Network. 1.28 "Interconnect" or "Interconnection" means the linking of the Cable System or I-Net with another cable system, communications system or I-Net, including technical, engineering, physical, financial and other necessary components to accomplish, complete and adequately maintain such linking, in a manner that permits the transmission and receiving of electronic or optical signals between the Cable System and another cable system, communications system or 1- Net; or the necessary components to accomplish, complete and adequately maintain pathways that permit the transmission and receiving of electronic or optical signals between locations connected to portions of the Cable System outside the Franchise Area and those portions of the Cable System inside the Franchise Area 1 29 "Leased Access Channel" means any Channel or portion of a Channel commercially available for video programming by Persons other than Grantee, for a fee or charge. 1.30 "Node" means an exchange point in the signal distribution system portion of the Cable System where optical signals are converted to RF signals. 1.31 "Person" means any individual, sole proprietorship, partnership, association, or corporation, or any other form of entity or organization. 1.32 "Premium Service" means programming choices (such as movie Channels, pay-per-view programs, or video on demand) offered to Subscribers on a per-Channel, per-program or per-event basis -5- 1.33 "Residential Subscriber" means any Person who receives Cable Service delivered to Dwelling Units or Multiple Dwelling Units, excluding such Multiple Dwelling Units billed on a bulk-billing basis. 1 .34 "Rights-of-Way" means each of the following which have been dedicated to the public or are hereafter dedicated to the public and maintained under public authority or by others and located within the City. streets, roadways, highways, avenues, lanes, alleys, bridges, sidewalks, easements, rights-of-way and similar public property and areas 1 35 "State" means the State of Colorado 1.36 "Subscriber" means any Person who or which elects to subscribe to, for any purpose, Cable Service provided by Grantee by means of or in connection with the Cable System and whose premises are physically wired and lawfully Activated to receive Cable Service from the Cable System. 1.37 "Subscriber Network" means that portion of the Cable System used primarily by Grantee in the transmission of Cable Services to Residential Subscribers. 1.38 "Telecommunications" means the transmission, between or among pOints speCified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received (as provided in 47 U.S.C Section 153(43)). 1.39 "Telecommunications Service" means the offering of Telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used (as provided in 47 U.S.C. Section 153(46)). 1.40 "Tier" means a group of Channels for which a single periodic subscription fee is charged. 1 41 "Two-Way" means that the Cable System is capable of providing both Upstream and Downstream transmissions. 1.42 "Upstream" means carrying a transmiSSion to the Headend from remote points on the Cable System or from Interconnection points on the Cable System SECTION 2. GRANT OF FRANCHISE 2.1 Grant (A) The City hereby grants to Grantee a nonexclusive authorization to make reasonable and lawful use of the Rights-of-Way within the City to construct, -6- operate, maintain, reconstruct, rebuild and upgrade the Cable System for the purpose of providing Cable Service subject to the terms and conditions set forth in this Franchise and in any prior utility or use agreements entered into with regard to any individual property. This Franchise shall constitute both a right and an obligation to provide the Cable Services and fulfill the obligations set forth herein. (B) Nothing in this Franchise shall be deemed to waive the lawful requirements of any generally applicable City ordinance. (C) Each and every term, provision or condition herein is subject to the provisions of State law, federal law, the Charter of the City of Wheat Ridge, and the ordinances and regulations enacted pursuant thereto The Charter and City Code of the City of Wheat Ridge, as the same may be amended from time to time, are hereby expressly incorporated into this Franchise as if fully set out herein by this reference. Notwithstanding the foregoing, the City may not unilaterally alter the material rights and obligations of Grantee under this Franchise. (D) This Franchise shall not be interpreted to prevent the City from imposing additional lawful conditions, including additional compensation conditions for use of the Rights-of-Way, should Grantee provide service other than Cable Service. (E) Grantee promises and guarantees, as a condition of exercIsing the privileges granted by this Franchise, that any Affiliate of the Grantee directly involved in the offering of Cable Service in the Franchise Area, or directly involved in the management or operation of the Cable System in the Franchise Area, will also comply with the terms and conditions of this Franchise (F) No rights shall pass to Grantee by implication. Without limiting the foregoing, by way of example and not limitation, this Franchise shall not include or be a substitute for. (1) Any other permit or authorization required for the privilege of transacting and carrying on a business within the City that may be required by the ordinances and laws of the City; (2) Any permit, agreement, or authorization required by the City for Rights-of-Way users in connection with operations on or in Rights-of-Way or public property including, by way of example and not limitation, street cut permits; or (3) Any permits or agreements for occupying any other property of the City or private entities to which access is not specifically granted by this Franchise including, without limitation, permits and agreements for placing devices on poles, in conduits or in or on other structures. -7- (G) This Franchise is intended to convey limited rights and interests only as to those Rights-of-Way in which the City has an actual Interest. It is not a warranty of title or interest in any Rights-of-Way; it does not provide the Grantee with any interest in any particular location within the Rights-of-Way; and it does not confer rights other than as expressly provided In the grant hereof. (H) This Franchise does not authorize Grantee to provide Telecommunications Service, or to construct, operate or maintain Telecommunications facilities This Franchise is not a bar to imposition of any lawful conditions on Grantee with respect to Telecommunications Service, whether similar, different or the same as the conditions specified herein This Franchise does not relieve Grantee of any obligation it may have to obtain from the City an authorization to provide Telecommunications Services, or to construct, operate or maintain Telecommunications facilities, or relieve Grantee of its obligation to comply with any such authorizations that may be lawfully required. (I) Grantee, through this Franchise, is granted extensive and valuable rights to operate its Cable System for profit using the Rights-of-Way in compliance with all applicable City construction codes and procedures. As trustee for the public, the City is entitled to fair compensation to be paid for these valuable rights throughout the term of the Franchise. 2.2 Effective Date and Term of Franchise (A) This Franchise and the rights, privileges and authority granted hereunder shall take effect on April 1, 2001 (the "Effective Date"), and shall terminate on April 1, 2013, unless terminated sooner or extended as hereinafter provided. (8) The grant of this Franchise shall have no effect on the Grantee's duty under the prior franchise agreement or any ordinance in effect prior to the Effective Date of this Franchise to indemnify or insure the City against acts and omissions occurring during the period that the prior franchise agreement was in effect. 2.3 Franchise Nonexclusive This Franchise shall be nonexclusive, and subject to all prior rights, interests, easements or licenses granted by the City to any Person to use any property, Rights-of-Way, right, interest or license for any purpose whatsoever, including the right of the City to use same for any purpose it deems fit, including the same or similar purposes allowed Grantee hereunder. The City may at any time grant authorization to any Person to use the Rights-of-Way for any purpose not in conflict with Grantee's authority under thiS Franchise and for such additional franchises for cable systems as the City deems appropriate -8- 2.4 Regulatory Parity (A) In the event that the City enters Into a franchise agreement with another cable operator which authorizes the operation of a cable system within part or all of the Franchise Area for the provision of video programming and/or Cable Service, and such franchise agreement includes more favorable or less burdensome provisions applicable to that company as compared to this Franchise, the City shall, upon Grantee's written request, amend this Franchise to incorporate such more favorable or less burdensome provisions and make such additional changes as is necessary to have comparable cable franchises. (B) In filing its request, Grantee shall identify the basis for Grantee's belIef, along with adequate evidence to support its request, that certain provisions of this Franchise place the Company at a competitive disadvantage and shall also furnish the City with a detailed list of the provisions of this Franchise from which the Grantee seeks relief in order to eliminate the competitive disadvantage. (C) If the City denies Grantee's request in whole or in part, the City shall advise Grantee in writing with detailed reasons for the denial. 2.5 No Priority This Franchise Agreement does not establish any priority for the use of the Rights-of-Way by Grantee or by any present or future recipients of franchise agreements, franchisees or other permit holders. In the event of any dispute as to the priority of use of the Public Ways, the first priority shall be to the public generally, the second priority to City, the third priority to the State of Colorado and its political subdivisions in the performance of their various functions, and thereafter, as between recipients of franchise agreements, franchisees and other permit holders, as determined by City in the exercise of its powers, including the police power and other powers reserved to and conferred on it by the State of Colorado. 2.6 Police Powers (A) Grantee's rights hereunder are subject to the police powers of the City to adopt and enforce ordinances necessary to the safety, health, and welfare of the public, and Grantee agrees to comply with all laws and ordinances of general applicability enacted, or hereafter enacted, by the City or any other legally constituted governmental unit having lawful jurisdiction over the subject matter hereof (B) The City shall have the right to adopt, from time to time, such ordinances as may be deemed necessary in the exercise of its police power; -9- provided that such ordinances shall be reasonable and not destructive of the rights granted in this Franchise. (C) The City reserves the right to exercise its police powers, notwithstanding anything In this Franchise to the contrary, and any conflict between the provisions of this Franchise and any other present or future lawful exercise of the City's police powers shall be resolved in favor of the latter. (D) Nothing in this Franchise or in any agreement or ordinance in accordance herewith shall be construed as an abrogation by the City of any of its police powers 2.7 Grantee Reservation of Rights By acceptance of this Franchise and agreement to comply with the proviSions herein, Grantee does not waive and specifically retains the right to challenge any future local ordinance, law, rule, or regulation, or future amendment thereto, including provisions of the City Code and City Charter, if Grantee believes that the local requirement: (A) is not an exercise of the City's lawful police powers, or (B) is not in compliance with State or federal laws, or (C) negatively impacts Grantee's contractual rights granted by this Franchise, or (D) is unlawfully discriminatory against Grantee. 2.8 Familiarity with Franchise The Grantee acknowledges and warrants by acceptance of the rights, privileges and agreements granted herein, that it has carefully read and fully comprehends the terms and conditions of this Franchise and is willing to and does accept all lawful and reasonable risks of the meaning of the provisions, terms and conditions herein. The Grantee further acknowledges and states that it has fully studied and considered the requirements of this Franchise, and finds that the same are commercially practicable at this time 2.9 Effect of Acceptance By accepting the Franchise, the Grantee (A) acknowledges and accepts the City's legal right to issue and enforce the Franchise, (B) accepts and agrees to comply with each and every proviSion of this Franchise subject to applicable law; (C) agrees that the Franchise was granted pursuant to processes and procedures consistent with applicable law, and that it will not raise any claim to the contrary, and (D) covenants and agrees that, it will not at any time or in any manner or proceeding set up against the City any claim or proceeding, based on applicable laws as of the Effective Date of this Franchise, challenging this Franchise in its entirety as being unreasonable, arbitrary, voidable or void. -10- Section 3. FRANCHISE FEE PAYMENT AND FINANCIAL CONTROLS 3.1 Franchise Fee (A) As compensation for the benefits and privileges granted under this Franchise and in consideration of permission to use the City's Rights-of-Way, Grantee shall pay as a franchise fee to the City, throughout the duration of this Franchise, an amount equal to five percent (5%) of Grantee's Gross Revenues. Accrual of such franchise fee shall commence as of the Effective Date of this Franchise. (B) The City recognizes that, in the future, Grantee may allocate revenue between Cable Services (which are subject to the Franchise Fee) and non-Cable Services (which are not subject to the Franchise Fee but may be subject to other fees and/or taxes), when these two types of service are bundled together in a discounted package offered to Subscribers. Due to the ambiguities that currently exist both in the business and regulatory environment on this issue, the City and the Grantee hereby reserve all rights, claims, defenses and remedies regarding the City's authority to impose and/or enforce requirements related to the revenue allocation methodology to be used when Cable Services and non-Cable Services are offered to Subscribers in a discounted package, for the purpose of calculating Franchise Fee payments. (C) In the event that the City believes that Grantee has unlawfully or unfairly allocated revenue between Cable Services and non-Cable Services for the purpose of calculating Franchise Fee payments, the City and the Grantee shall meet upon advance notice from the City to discuss the allocation methodology. If the City and the Grantee cannot agree on the matter within a reasonable period of time, the City and Grantee shall submit the matter to a mutually-agreeable third party for mediation. The cost of the mediation shall be shared equally between the City and the Grantee. If the mediation is unsuccessful or if the City and the Grantee are unable to mutually agree on a mediator, then either the City or the Grantee can bring the matter to a court of competent jurisdiction, or pursue any other remedies available to them in this Franchise or by law. 3.2 Payments Grantee's franchise fee payments to the City shall be computed quarterly for the preceding calendar quarter ending March 31, June 30, September 30, and December 31 Each quarterly payment shall be due and payable no later than thirty (30) days after said dates. 3.3 Acceptance of Payment and Recomputation No acceptance of any payment shall be construed as an accord by the City that the amount paid is, in fact, the correct amount, nor shall any acceptance of -11- payments be construed as a release of any claim the City may have for further or additional sums payable or for the performance of any other obligation of Grantee. 3.4 Quarterly Franchise Fee Reports Each payment shall be accompanied by a written report to the City, verified by an authorized representative of Grantee, containing an accurate statement In summarized form, as well as in detail, of Grantee's Gross Revenues and the computation of the payment amount. Such reports shall detail all Gross Revenues of the Cable System in the Franchise Area and shall be drafted in accordance with GAAP 3.5 Annual Franchise Fee Reports Grantee shall, within sixty (60) days after the end of each year, furnish to the City a statement stating the total amount of Gross Revenues for the year and all payments, deductions and computations for the period. Such statement shall be audited by a certified public accountant, who may also be the chief financial officer or controller of Grantee, prior to submission to the City. 3.6 Audits On an annual basis, upon thirty (30) days prior written notice, the City shall have the right to conduct an independent audit of Grantee's records reasonably related to the administration or enforcement of this Franchise, in accordance with GAAP. If the audit shows that franchise fee payments have been underpaid by five percent (5%) or more, Grantee shall pay the total cost of the audit. The City's right to audit and the Grantee's obligation to retain records related to a franchise fee audit shall expire three (3) years after each franchise fee payment has been made to the City. 3.7 Late Payments In the event any payment due quarterly is not received within thirty (30) days from the end of the calendar quarter, Grantee shall pay interest on the amount due (at the prime rate as listed in the Wall Street Journal on the date the payment was due), compounded daily, calculated from the date the payment was originally due until the date the City receives the payment. 3.8 Underpayments If a net franchise fee underpayment is discovered as the result of an audit, Grantee shall pay interest at the rate of eight percent (8%) per annum, compounded quarterly, calculated from the date each portion of the underpayment was originally due until the date Grantee remits the underpayment to the City -12- 3.9 Alternative Compensation In the event the obligation of Grantee to compensate the City through franchise fee payments is lawfully suspended or eliminated, in whole or part, then Grantee shall pay to the City compensation eqUivalent to the compensation paid to the City by other similarly situated users of the Rights-of-Way for Grantee's use of the Rights-of-Way, provided that in no event shall such payments exceed the equivalent of five percent (5%) of Grantee's Gross Revenues (subject to the other provisions contained in this Franchise) 3.10 Maximum Legal Compensation The parties acknowledge that, at present, applicable federal law limits the City to collection of a maximum permissible franchise fee of five percent (5 %) of Gross Revenues. In the event that at any time during the duration of this Franchise, the City is authorized to collect an amount in excess of five percent (5 %) of Gross Revenues, then this Franchise may be amended unilaterally by the City to provide that such excess amount shall be added to the franchise fee payments to be paid by Grantee to the City hereunder, up to a maximum of the new federal limit or seven percent (7%), whichever is less, after holding a public hearing on the matter. The increase will be effective ninety (90) days following Grantee's receipt of written notice from the City of such amendment. 3.11 Additional Commitments Not Franchise Fee Payments No term or condition in this Franchise, including the funding required by Section 9, shall in any way modify or affect Grantee's obligation to pay franchise fees. Although the total sum of franchise fee payments and additional commitments set forth elsewhere in this Franchise may total more than five percent (5 %) of Grantee's Gross Revenues in any twelve (12) month period, Grantee agrees that the additional commitments herein are not franchise fees as defined under any federal law, nor are they to be offset or credited against any franchise fee payments due to the City, nor do they represent an increase in franchise fees to be passed through to Subscribers pursuant to any federal law. 3.12 Tax Liability The franchise fees shall be in addition to any and all taxes or other levies or assessments which are now or hereafter required to be paid by businesses in general by any law of the City, the State or the United States including, without limitation, sales, use and other taxes, business license fees or other payments. Payment of the franchise fees under this Franchise shall not exempt Grantee from the payment of any other license fee, permit fee, tax or charge on the business, occupation, property or income of Grantee that may be lawfully imposed by the City. Any other license fees, taxes or charges shall be of general applicability in -13- -- nature and shall not be levied against Grantee solely because of its status as a Cable Operator, or against Subscribers, solely because of their status as such. 3.13 Financial Records Grantee agrees to meet with a representative of the City upon request to review Grantee's methodology of record-keeping, financial reporting, the computing of franchise fee obligations and other procedures, the understanding of which the City deems necessary for reviewing reports and records. 3.14 Payment on Termination If this Franchise terminates for any reason, the Grantee shall file with the City within ninety (90) calendar days of the date of the termination, a financial statement, certified by an independent certified public accountant, showing the Gross Revenues received by the Grantee since the end of the previous fiscal year. The City reserves the right to satisfy any remaining financial obligations of the Grantee to the City by utilizing the funds available in the letter of credit or other security provided by the Grantee. SECTION 4. ADMINISTRATION AND REGULATION 4.1 Authority (A) The City shall be vested with the power and right to reasonably regulate the exercise of the privileges permitted by this Franchise in the public Interest, or to delegate that power and right, or any part thereof. to the extent permitted under State and local law, to any agent including, but not limited to, the GMTC, in its sole discretion. (8) Nothing in this Franchise shall limit nor expand the City's right of eminent domain under State law. 4.2 Rates and Charges All of Grantee's rates and charges related to or regarding Cable Services shall be subject to regulation by the City to the full extent authorized by applicable federal, state and local laws. 4.3 Rate Discrimination All of Grantee's rates and charges shall be published (in the form of a publicly-available rate card) and be non-discriminatory as to all Persons and organizations of similar classes, under similar circumstances and conditions. Grantee shall apply its rates in accordance with governing law, with identical rates and charges for all Subscribers receiving identical Cable Services, without regard to race, color, ethnic or national origin, religion, age, sex, sexual orientation, marital, -14- military or economic status, or physical or mental disability or geographic location within the City Grantee shall offer the same Cable Services to all Residential Subscribers at Identical rates and to Multiple Dwelling Unit Subscribers as authorized by FCC rules. Grantee shall permit Subscribers to make any lawful in- residence connections the Subscriber chooses without additional charge nor penalizing the Subscriber therefor. However, if any in-home connection requires service from Grantee due to signal quality, signal leakage or other factors, caused by improper installation of such in-home wiring or faulty materials of such in-home wiring, the Subscriber may be charged reasonable service charges by Grantee. Nothing herein shall be construed to prohibit. (A) The temporary reduction or waiving of rates or charges in conjunction with valid promotional campaigns; or (B) The offering of reasonable discounts to senior citizens or economically disadvantaged citizens; or (C) The offering of rate discounts for Cable Service; or (D) The Grantee from establishing different and nondiscriminatory rates and charges and classes of service for Commercial Subscribers, as allowable by federal law and regulations. 4.4 Filing of Rates and Charges (A) Throughout the term of this Franchise, Grantee shall maintain on file with the City a complete schedule of applicable rates and charges for Cable Services provided under this Franchise. Nothing in this paragraph shall be construed to require Grantee to file rates and charges under temporary reductions or waivers of rates and charges in conjunction with promotional campaigns. As used in this paragraph, no rate or charge shall be considered temporary if Subscribers have the ability over a period greater than four (4) consecutive months (or such other period as may be approved by the City) to purchase Cable Services at such rate or charge. (B) Upon request of the City, Grantee shall provide a complete schedule of current rates and charges for any and all Leased Access Channels, or portions of such Channels, provided by Grantee. The schedule shall include a description of the price, terms, and conditions established by Grantee for Leased Access Channels -15- 4.5 Cross Subsidization Grantee shall comply with all applicable laws regarding rates for Cable Services and all applicable laws covering issues of cross SUbsidization. 4.6 Reserved Authority The City reserves all regulatory authority arising from the Cable Act and any other relevant provisions of federal, State, or local law. The City reserves such rights and powers which, under applicable federal or State law or regulations, the City must reserve and maintain. The Grantee shall comply with any action or requirements of the City in the exercise of such rights and powers which either have been or shall, subsequent to the grant of this Franchise, be enacted or established. 4.7 Time limits Strictly Construed Whenever this Franchise sets forth a time for any act to be performed by Grantee, such time shall be deemed to be of the essence, and any failure of Grantee to perform within the allotted time may be considered a material breach of this Franchise, and sufficient grounds for the City to invoke any relevant remedy. 4.8 Regulations Promulgated by City Council (A) In addition to the powers held by the City under the Colorado Constitution and the City Charter, the City Council is hereby authorized to promulgate by ordinance, in the exercise of its lawful powers, such additional regulations as it shall find necessary to effectuate fully the construction and operation of the Cable System pursuant to this Franchise; provided that such additional regulations shall be consistent with the terms and conditions of this Franchise and shall not expand the obligations of the Grantee, nor limit the Grantee's benefits, as provided in this Franchise. (B) The Grantee may propose additional regulations by application to the City Council, but the City Council shall not adopt any such proposal unless it expressly determines that such proposal is consistent with the terms and conditions of this Franchise 4.9 Franchise Modification Procedure Either party may at any time seek an amendment of this Franchise by so notifying the other party in writing Within thirty (30) days of receipt of notice, the City Manager and Grantee shall meet to discuss the proposed amendment(s). If the parties reach a mutual agreement upon the suggested amendment(s), such amendment(s) shall be submitted to the City Council for approval. If so approved by the City Council and the Grantee, then such amendment(s) shall be deemed part -16- of this Franchise amendment. If mutual agreement IS not reached, there shall be no 4.10 Performance Evaluations (A) The City may hold performance evaluation sessions within thirty (30) days of the biennial anniversary dates of the Effective Date of this Franchise. All such evaluation sessions shall be conducted by the City. (8) Special evaluation sessions may be held at any time by the City during the term of this Franchise. (C) All regular evaluation sessions shall be open to the public and announced at least two (2) weeks in advance in a newspaper of general circulation in the City. Grantee shall also include with or on the Subscriber billing statements for the billing period immediately preceding the commencement of the session, written notification of the date, time, and place of the regular performance evaluation session, and any special evaluation session as required by the City, provided Grantee receives appropriate advance notice. (D) Topics which may be discussed at any evaluation session may include, but are not limited to, Cable Service rate structures; franchise fee payments; liquidated damages; free or discounted Cable Services; application of new technologies; Cable System performance; Cable Services provided; programming offered; Subscriber complaints; privacy; modifications to this Franchise; judicial and FCC rulings; line extension policies; and the City or Grantee's rules; provided that nothing in this subsection shall be construed as requiring the renegotiation of this Franchise. (E) During evaluations under this subsection, Grantee shall fully cooperate with the City and shall provide such information and documents as the City may reasonably require to perform the evaluation. 4.11 Force Majeure (A) In the event Grantee is prevented or delayed in the performance of any of its obligations under this Franchise by reason beyond the control of Grantee, Grantee shall have a reasonable time, under the circumstances, to perform the affected obligation under this Franchise or to procure a substitute for such obligation which is satisfactory to the City. Those conditions which are not within the control of Grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions which have a direct and substantial impact on the Grantee's ability to provide Cable Services in the City and which was not caused and could not have been avoided by the Grantee which used its best efforts in its operations to avoid such results -17- (B) If Grantee believes that a reason beyond its control has prevented or delayed its compliance with the terms of this Franchise, Grantee shall, prior to the deadline for compliance, provide documentation as reasonably required by the City to substantiate the Grantee's claim. If Grantee has not yet cured the deficiency, Grantee shall also provide the City with its proposed plan for remediation, including the timing for such cure. SECTION 5. FINANCIAL AND INSURANCE REQUIREMENTS 5.1 Indemnification (A) General Indemnification. Grantee shall indemnify, defend and hold the City, its officers, officials, boards, commissions, agents and employees, harmless from any action or claim for injury, damage, loss, liability, cost or expense, including court and appeal costs and attorneys' fees or expenses, arising from any casualty or accident to Person or property, including, without limitation, copyright infringement, defamation, and all other damages in any way arising out of, or by reason of, any construction, excavation, operation, maintenance, reconstruction, or any other act done under this Franchise, by or for Grantee, its agents, or its employees, or by reason of any neglect or act or omission of Grantee. Grantee shall consult and cooperate with the City while conducting its defense of the City. (B) Indemnification for Relocation. Grantee shall indemnify the City for any damages, claims, additional costs or expenses assessed against, or payable by, the City arising out of, or resulting from, directly or indirectly, Grantee's failure to remove, adjust or relocate any of its facilities in the Rights-of-Way in a timely manner in accordance with any relocation required by the City. (C) Additional Circumstances. Grantee shall also indemnify, defend and hold the City harmless for any claim for injury, damage, loss, liability, cost or expense, including court and appeal costs and attorneys' fees or expenses in any way arising out of: (1) The lawful actions of the City in granting this Franchise to the extent such actions are consistent with this Franchise and applicable law, (2) Damages arising out of any failure by Grantee to secure consents from the owners, authorized distributors, or licensees/licensors of programs to be delivered by the Cable System, whether or not any act or omission complained of is authorized, allowed or prohibited by this Franchise. (3) Any claims, costs, and expenses, of any kind, whether direct or indirect, incurred by the City arising out of a release of hazardous substances caused by the Cable System. -18- (D) Procedures and Defense If a claim or action arises, the City or any other indemnified party shall promptly tender the defense of the claim to Grantee, which defense shall be at Grantee's expense. The City may participate in the defense of a claim and, in any event, Grantee may not agree to any settlement of claims affecting the City without the City's approval. (E) Non-waiver. The fact that Grantee carries out any activities under this Franchise through independent contractors shall not constitute an avoidance of or defense to Grantee's duty of defense and indemnification under this subsection. (F) Expenses. If separate representation to fully protect the interests of both parties is necessary, such as a conflict of interest between the City and the counsel selected by Grantee to represent the City, Grantee shall pay all expenses incurred by the City in defending itself with regard to any action, suit or proceeding indemnified by Grantee. The City's expenses shall include all out-of-pocket expenses, such as consultants' fees and outside attorneys' fees, and shall also include the reasonable value of any services rendered by the City Attorney or his/her assistants or any employees of the City or its agents (G) Nothing herein shall be deemed to prevent the City from cooperating with the Grantee and participating in the defense of any litigation naming the City by its own counsel at its sole cost and expense. No recovery by the City of any sum by reason of the letter of credit or bond as required in subsections 5.3 and 5.4 of this Franchise shall be any limitation upon the liability of the Grantee to the City under the terms of this subsection 5.2 Insurance (A) Grantee shall maintain In full force and effect at its own cost and expense each of the following policies of insurance on a continuous uninterrupted basis, in at least the amounts required, for the duration of this Franchise and, in the case of the Commercial General Liability, for at least one (1) year after expiration of this Franchise: (1) Commercial General Liability insurance with limits of no less than one million dollars ($1,000,000.00) per occurrence and one million dollars ($1,000,000 00) general aggregate Coverage shall be at least as broad as that provided by ISO CG 00 01 1/96 or its equivalent and include severability of interests. Such insurance shall name the City, its officers, officials and employees as additional insureds per ISO CG 2026 or its equivalent There shall be a waiver of subrogation and rights of recovery against the City, its officers, officials and employees. Coverage shall apply as to claims between insureds on the policy, if applicable (2) combined Commercial single limits Automobile Liability insurance with minimum of one million dollars ($1,000,00000) each -19- occurrence and one million dollars($1 ,000,000.00) aggregate with respect to each of Grantee's owned, hired and non-owned vehicles assigned to or used in the operation of the Cable System in the City. The policy shall contain a severability of interests provision. (3) Employer's Liability. One million dollars ($1,000,000.00). (B) Each policy shall provide that the insurance shall not be canceled, modified, amended, coverage reduced or materially changed so as to be out of compliance with these requirements without thirty (30) days' written notice first provided to the City, via certified mail, and ten (10) days' notice for nonpayment of premium. If the insurance is canceled or materially altered so as to be out of compliance with the requirements of this subsection within the term of this Franchise, Grantee shall provide a replacement policy. (C) Any deductible of the policies shall not In any way limit Grantee's liability to the City. (0) Endorsements. All policies shall contain, or shall be endorsed so that. (1) The City, its officers, officials, boards, commissions and employees are to be covered as, and have the rights of, additional insureds with respect to liability arising out of activities performed by, or on behalf of, Grantee under this Franchise or applicable law, or in the construction, operation or repair, or ownership of the Cable System; (2) Grantee's insurance coverage shall be primary Insurance with respect to the City, its officers, officials, boards, commissions and employees. Any insurance or self-insurance maintained by the City, its officers, officials, boards, commissions, employees and agents shall be in excess of the Grantee's insurance and shall not contribute to it; and (3) Grantee's insurance shall apply separately to each insured against whom a claim is made or lawsuit is brought, except with respect to the limits of the insurer's liability. (E) The insurance obtained by Grantee shall be placed with insurers with a Best's rating of no less than "A VIII." (F) The Grantee shall maintain on file with the City certificates of insurance which evidence the coverage required by paragraph 5.2(A) and the requirements of paragraph 5 .2(B). The certificates are to be signed by a Person authorized by that insurer to bind coverage on its behalf The certificates are to be on standard forms or such forms as are consistent with standard industry practices, and are to be received and approved by the City prior to the -20- commencement of activities associated with this Franchise. The Grantee hereby warrants that its insurance policies satisfy the requirements of this Franchise. (G) Self-Insurance Grantee may provide self-insurance in the same amount and level of protection for Grantee and City, its officers, agents and employees as otherwise required under this subsection. The adequacy of self- Insurance shall be subject to the prior review and approval of the City. 5.3 Letter of Credit (A) No later than the Effective Date of this Franchise, Grantee shall establish and provide to the City, on behalf of the City and all other members of the GMTC set forth on Exhibit A, as security for the faithful performance by Grantee of all of the provisions of this Franchise, a letter of credit from a financial Institution satisfactory to the City in the amount of one hundred thousand dollars ($100,000). (B) The letter of credit shall be maintained at one hundred thousand dollars ($100,000) throughout the term of this Franchise, provided that once every three (3) years, the City shall have the right to increase this amount to reflect increases in the Denver Metropolitan Area Consumer Price Index during the prior three (3) year period. (C) The letter of credit may be drawn upon by the City for purposes including, but not limited to, the following: (1) Failure of Grantee to pay the City sums due under the terms of this Franchise; (2) Reimbursement of costs borne by the City to correct Franchise violations not corrected by Grantee; (3) Monetary remedies or damages assessed against Grantee due to default or breach of Franchise requirements; and (4) established time Failure to comply with the Customer Service Standards by Section 6 hereof, as the same may be amended from time to (D) The City shall give Grantee written notice of any withdrawal under this subsection upon such withdrawal. Within seven (7) days following receipt of such notice, Grantee shall restore the letter of credit to the amount required under this Franchise. (E) Grantee shall have the right to appeal to the City Council for reimbursement in the event Grantee believes that the letter of credit was drawn -21- upon Improperly. Grantee shall also have the right of Judicial appeal if Grantee believes the letter of credit has not been properly drawn upon in accordance with this Franchise. Any funds the City erroneously or wrongfully withdraws from the letter of credit shall be returned to Grantee with interest, from the date of withdrawal at a rate of eight percent (8%) per annum. (F) If more than fifty percent (50%) of the GMTC members listed on Exhibit A withdraw from the GMTC or are not eligible to draw on the letter of credit held in the name of all GMTC members, Grantee shall have the right to renegotiate the terms of the letter of credit or reduce it by an amount equal to the pro-rata number of Subscribers whose grantors have withdrawn from the GMTC or are not eligible to draw on the shared letter of credit, provided however that the amount of the letter of credit shall in no event be reduced below twenty five thousand dollars ($25,000.00) (G) If the City withdraws from the GMTC, or if the City elects to require a letter of credit exclusively devoted to the City's use under this Franchise, Grantee shall obtain a letter of credit solely for the benefit of the City, in the amount of twenty five thousand dollars ($25,00000), within sixty (60) days of receiving written notice from the City In this event, the City will also be removed from the GMTC letter of credit. 5.4 Construction Bond Grantee shall comply with City's generally applicable requirements for construction bonds Any bonds provided thereunder shall be in a form and with a surety acceptable to the City's Risk Administrator and in a form acceptable to the City Attorney. SECTION 6. CUSTOMER SERVICE STANDARDS 6.1 Customer Service Standards Grantee shall at all times comply with the more stringent of the provisions of the customer service and consumer protection provisions of the Wheat Ridge Code of Laws, including without limitation, Ordinance 973, Series 1994, (attached as Exhibit B), as amended, or the customer service standards of the FCC, as amended. SECTION 7. REPORTS AND RECORDS 7.1 Open Records Grantee shall manage all of its operations in accordance with a policy of keeping its documents and records open and accessible to the City The City shall have access to, and the right to inspect, any books and records of Grantee and its Affiliates which are reasonably related to the administration or enforcement of the -22- terms of this Franchise. Grantee shall not deny the City access to any of Grantee's records on the basis that Grantee's records are under the control of any Affiliate or a third party. The City may, in writing, request copies of any such records or books and Grantee shall provide such copies within thirty (30) days of the transmittal of such request. One (1) copy of all reports and records required under this or any other subsection shall be furnished to the City, at the sole expense of Grantee. If the requested books and records are too voluminous, or for security reasons cannot be copied or removed, then Grantee may request, in writing within ten (10) days, that the City inspect them at Grantee's local offices If any books or records of Grantee are not kept in a local office and not made available in copies to the City upon written request as set forth above, and if the City determines that an examination of such records is necessary or appropriate for the performance of any of the City's duties, administration or enforcement of this Franchise, then all reasonable travel and related expenses incurred in making such examination shall be paid by Grantee 7.2 Confidentiality The City agrees to treat as confidential any books or records that constitute proprietary or confidential information under federal or State law, only to the extent Grantee makes the City aware of such confidentiality. Grantee shall be responsible for clearly and conspicuously stamping the word "Confidential" on each page that contains confidential or proprietary information, and shall provide a brief written explanation as to why such information is confidential under State or federal law. If the City believes it must release any such confidential books and records in the course of enforcing this Franchise, or for any other reason, it shall advise Grantee in advance so that Grantee may take appropriate steps to protect its interests. Grantee acknowledges that the City is subject to the Colorado Open Records Act, 9924-72-101, et seq, C.R.S. If the City receives a demand from any Person for disclosure of any information designated by Grantee as confidential, the City shall, so far as consistent with applicable law, advise Grantee and provide Grantee with a copy of any written request by the party demanding access to such information within a reasonable time Until otherwise ordered by a court or agency of competent jurisdiction, the City agrees that, to the extent permitted by State and federal law, it shall deny access to any of Grantee's books and records marked confidential as set forth above to any Person. If any Person files suit against the City for protecting Grantee's books and records from disclosure, Grantee shall defend and indemnify the City as required by subsection 5.1. The City shall not be obligated to undertake or defend litigation to protect said records from disclosure. 7.3 Records Required (A) Grantee shall at all times maintain, and shall furnish to the City upon request -23- (1) A complete set of maps showing the routing of the Cable System in the Rights-of-Way, but excluding detail on proprietary electronics contained therein and Subscriber drops. As-built maps including proprietary electronics shall be available at Grantee's offices for inspection by the City's authorized representative(s) or agent(s)and made available to such during the course of technical inspections as reasonably conducted by the City. These maps shall be certified as accurate by an appropriate representative of the Grantee; (2) A copy of all FCC filings on behalf of Grantee or its Affiliates which relate to the operation of the Cable System in the City; (3) Current Subscriber Records and information; (4) A log of Cable Services added or dropped, Channel changes, number of Subscribers added or terminated, all construction activity, and total homes passed for the previous twelve (12) months, and (5) A list of Cable Services, rates and Channel line-ups. (B) Subject to subsection 7.2, all information furnished to the City is public information, and shall be treated as such, except for information involving the privacy rights of individual Subscribers. 7.4 Annual Reports Within sixty (60) days after the end of the calendar year, Grantee shall submit to the City a written report, in a form acceptable to the City, which shall include, but not necessarily be limited to, the following information for the City: (A) A Gross Revenue statement, as required by Subsection 3.5 of this Franchise; (B) A summary of the previous year's activities in the development of the Cable System, including, but not limited to, Cable Services begun or discontinued during the reporting year, and the number of Subscribers for each class of Cable Service (i e., Basic Service, Expanded Basic Service, and Premium Service); and (C) The number of homes passed, beginning and ending Cable System miles, , and any technological changes occurring in the Cable System; and (0) A statement of planned construction, if any, for the next year. 7.5 Copies of Federal and State Reports Grantee shall submit to the City copies of all pleadings, applications, notifications, communications and documents of any kind, submitted by Grantee or -24- Its parent corporatlon(s). to any federal, State or local courts, regulatory agencies and other government bodies if such documents directly relate to the operations of the Cable System within the City. Grantee shall submit such documents to the City no later than thirty (30) days after filing, mailing, publication, or completion. Grantee shall not claim confidential, privileged or proprietary rights to such documents unless under federal, State, or local law such documents have been determined to be confidential by a court of competent jurisdiction, or a federal or State agency. With respect to all documents provided to any federal, State, or local regulatory agency as a routine matter in the due course of operating the Cable System within the City, Grantee shall make such documents available to the City upon request. 7.6 Complaint File and Reports Grantee shall keep an accurate and comprehensive file of any and all complaints regarding the Cable System, in a manner consistent with the privacy rights of Subscribers, and Grantee's actions in response to those complaints. These files shall remain open to the City during normal business hours. Grantee shall provide the City an executive summary monthly in accordance with Wheat Ridge Code of Laws, Ordinance 973, Series 1994 (Exhibit B), as amended, which shall include the following information (A) A summary of service requests, identifying the number and nature of the requests and their disposition; (B) A log of all service interruptions; (C) A summary of customer complaints referred by the City to Grantee; (0) Average response time for service calls; (E) Phone activity report; (F) Video programming changes (additions/deletions); and (G) Such other information as reasonably requested by the City in its enforcement of this Franchise, provided that Grantee is given thirty (30) days prior written notice of such request before the beginning of the applicable month. 7.7 Failure to Report The failure or neglect of Grantee to file any of the reports or filings required under this Franchise or such other reports as the City may reasonably request (not including clerical errors or errors made in good faith). may, at the City's option, be deemed a material breach of this Franchise. -25- 7.8 False Statements Any false or misleading statement or representation in any report required by this Franchise (not including clerical errors or errors made in good faith) may be deemed a material breach of this Franchise and may subject Grantee to all remedies, legal or equitable, which are available to the City under this Franchise or otherwise. SECTION 8. PROGRAMMING 8.1 Broad Programming Categories Grantee shall provide or enable the provIsion of at least the following initial broad categories of programming to the extent such categories are reasonably available (A) (B) (C) (0) (E) (F) (G) (H) (I) (J) City; (K) (L) (M) Educational; Colorado news, weather & Information; Sports; General entertainment (including movies), Ch ildren/family-oriented; Arts, culture and performing arts; Foreign language; Science/documentary; National news, weather and information; Programming addressed to diverse ethnic and minority interests in the Government affairs; Access programming to the extent required by this Franchise; and Programming of interest to the City's elderly population. 8.2 Deletion or Reduction of Broad Programming Categories (A) Grantee shall not delete or so limit as to effectively delete any broad category of programming within its control without the prior written consent of the City -26- (8) In the event of a modification proceeding under federal law, the mix and quality of Cable Services provided by Grantee on the Effective Date of this Franchise shall be deemed the mix and quality of Cable Services required under this Franchise throughout its term. 8.3 Ascertainment of Programming and Customer Satisfaction Upon request of the City, Grantee shall, at the sole expense of Grantee, undertake a biennial survey of community views of cable operations in the City, including but not limited to programming, response to community needs, satisfaction and dissatisfaction with Cable Services offered by Grantee, and customer service. Grantee shall consult and cooperate with the City in developing and implementing an ascertainment methodology. The final form and content of the survey shall be as mutually agreed upon by the Grantee and the City. Grantee shall provide the results of such survey to the City within two (2) months after completing the survey. Upon request, Grantee shall also provide a copy of results from any other survey of Subscribers in the City conducted independently by the Grantee within the previous year. Any survey results conducted within the City which are intended for external publication shall also be provided to the City. Nothing herein shall be construed to limit the right of the City to conduct its own surveys at its own expense. 8.4 Censorship Prohibited (A) Grantee shall not exercise any editorial control over any Public, Educational, or Government Access channel, except Grantee may refuse to transmit any program which is obscene or otherwise unprotected by the Constitution of the United States. (8) The City shall not prohibit or limit any program or class or type of program or otherwise censor the Cable Services offered by the Grantee or other parties over the Cable System, other than programs on the Government Access Channel or Channels, and shall not promulgate any regulation or condition which would interfere with the right of free speech by means of the Cable System. 8.5 Parental Control Device Upon request by any Subscriber, Grantee shall make available a parental control or lockout device, traps or filters to enable a Subscriber to control access to both the audio and video portions of any or all Channels. Grantee shall inform its Subscribers of the availability of the lockout device at the time of their initial subscription and periodically thereafter. Any device offered shall be at a rate, if any, in compliance with applicable law. -27- 8.6 Continuity of Service Mandatory (A) It shall be the nght of all Subscribers to continue to receive Cable Service from Grantee insofar as their financial and other obligations to Grantee are honored. The Grantee shall act so as to ensure that all Subscribers receive continuous, uninterrupted Cable Service regardless of the circumstances. For the purposes of this paragraph, "uninterrupted" does not include short-term outages of the Cable System for construction, maintenance or testing. (B) In the event of a change of Grantee, or in the event a new Cable Operator acquires the Cable System in accordance with this Franchise, Grantee shall cooperate with the City, new franchisee or Cable Operator in maintaining continuity of Cable Service to all Subscribers During any transition period, Grantee shall be entitled to the revenues for any period during which it operates the Cable System, and shall be entitled to reasonable costs for its services when it no longer operates the Cable System. (C) In the event Grantee fails to operate the Cable System for four (4) consecutive days without prior approval of the City Manager, or without just cause, the City may, at its option, operate the Cable System itself or designate another Cable Operator until such time as Grantee restores service under conditions acceptable to the City or a permanent Cable Operator is selected. If the City is required to fulfill this obligation for Grantee, Grantee shall reimburse the City for all reasonable costs or damages that are the result of Grantee's failure to perform. 8.7 Cable Bill Inserts Upon reasonable advance notice, but no more often than once per calendar year, the Grantee will provide the City with an insert space in Subscribers' cable television bills. Grantee shall provide the City with the pnnting specifications for the inserts. The City shall be responsible for the content and printing costs of the insert, and for the cost of shipping the printed inserts to the Grantee's billing agent. The City shall only pay incremental mailing costs if the City's insert results in an increase to the standard mailing costs normally incurred by the Grantee In sending its Subscriber billing statements. The Grantee shall also use reasonable efforts to accommodate the City's requests for the placement of messages on billing statements, at no cost to the City. SECTION 9. ACCESS 9.1 Capital Contribution Grantee shall collect and provide to the City up to $ .50 per month per Residential Subscriber for Access or I-Net capital (the" Capital Contribution"). Grantee shall not be responsible for collecting or paying the Capital Contribution with respect to gratis accounts. The City shall give Grantee at least ninety (90) -28- days advance written notice of Grantee's obligation to begin payment of the Capitol Contribution, including the monthly amount to be collected. Each payment shall be due and payable no later than thirty (30) days following the end of the quarter from when the Capital Contribution takes effect. The City shall have discretion to allocate the Capital Contribution in accordance with applicable law. The City may adjust the amount of the Capital Contribution on an annual basis, up to the maximum amount specified in this subsection 9.2, provided that Grantee is given ninety (90) days advance written notice. 9.2 Initial Access Channels As of the Effective Date of this Franchise, Grantee shall provide, at its expense, two (2) Downstream Access Channels. These Access Channels shall be initially allocated as follows one (1) Community Access Channel, and one (1) Government Access Channel. 9.3 Additional Access Channels (A) The City may require Grantee to Activate, at Grantee's expense, up to four (4) additional Downstream Access Channels, for a maximum of six (6) Downstream Access Channels, under the procedures specified below (B) If the City believes that additional Access Channel capacity is needed, the matter will be considered by the City Manager. In his/her deliberations, the City Manager will consider supply and demand, and, in particular, the ability and resources of the City or its designee to produce additional Access programming, the interest of the community in the additional Access programming as measured through a survey methodology that is mutually acceptable between the City and the Grantee, consideration of the programming that would be displaced, how much programming is produced on the existing Access Channels in the Denver metro area, how much programming on the existing Access Channels is repeated, how much programming on the existing Access Channels is character-generated, whether it is feasible to cluster Access programming into blocks of time such that the Channel space can be compatibly shared, and if Access programming can be combined onto fewer Access Channels. (C) Should the City Manager find that the evidence exists to support the Activation of an additional Access Channel, then the City Manager shall provide his/her decision in writing and Grantee shall provide the Activated Channel within ninety (90) days of receiving the request. Grantee may appeal the decision of the City Manager to the City Council. 9.4 Underutilized Access Channels Grantee and the City agree that it is their mutual goal to fully and efficiently use the Channel capacity of the Cable System, which may include allowing the -29- Grantee to use underutilized time on Access Channels. If Grantee believes that any Access Channel has underutilized time, Grantee may file a request with the City Manager to use that time. In response to the request, the City Manager will consider a combination of factors, including but not limited to, the community's needs and interests, and the source, quantity, type and schedule of the programming carried on the Access Channel. The City Manager will also consider, taking into account the mission of the Access programming, whether it is feasible to cluster Access programming into blocks of time such that the Channel space can be compatibly shared between the City or its designee and the Grantee and/or if Access programming can be combined onto fewer Access Channels. The City Manager shall render his/her decision regarding the matter within ninety (90) days of receiving the request. Should the City Manager find that the Access Channel or portion of the Access Channel may be used by the Grantee, then Grantee may begin using such time one hundred twenty (1 20) days after receipt of the decision. The Grantee's request shall not be unreasonably denied. At such time as the City believes that it has the resources and ability to utilize the Access Channel time currently used by the Grantee pursuant to this subsection, the City Manager may consider whether to return such Channel or portion of the Channel for Access purposes The City Manager will consider a combination of factors, including but not limited to, the community's needs and interests, and the source, quantity, type and schedule of the programming proposed to be carried on the Access Channel as well the City's ability and resources to acquire or produce the proposed Access programming. The City Manager will also consider, taking into account the mission of the Access programming, whether it is feasible to cluster Access programming into blocks of time such that the Channel space can be compatibly shared between the City or its designee and the Grantee and/or if Access programming can be combined onto fewer Access Channels. Should the City Manager find that the evidence exists to support the return of the Access Channel or portion of the Access Channel to the City or its designee, then Grantee shall surrender the requested time on the Access Channel within one hundred twenty (120) days of receiving the decision. 9.5 Change in Technology In the event Grantee makes any change in the Cable System and related equipment and facilities or in Grantee's signal delivery technology, which directly or indirectly affects the signal quality or transmission of Access services or programming, Grantee shall at its own expense take necessary technical steps or provide necessary technical assistance, including the acquisition of all necessary equipment and full training of Access personnel, to ensure that the capabilities of Access services are not diminished or adversely affected by such change For example, this provision shall apply if the Cable System is converted from an analog to a digital format, such that the Access Channels must also be converted to digital in order to be received by Subscribers. -30- 9.6 Management and Control of Access Channels (A) The City shall have sole and exclusive responsibility for allocating the Access resources under this Section. The City or its designee may formulate rules for the operation of the Access Channels, consistent with this Franchise. (B) All assigned Access Channels can be used to transmit signals in any format which is technically compatible with the Cable System, including, by way of example and not limitation, video, audio only, other non-video and/or text messages. Such uses must be in furtherance of Access purposes. 9.7 Access Channels On Basic Service All Access Channels provided to Subscribers under this Franchise shall be included by Grantee, without limitation, as a part of Basic Service 9.8 Access Channel Assignments Grantee will use reasonable efforts to minimiZe the movement of Access Channel assignments. Grantee shall also use reasonable efforts to institute common Channel assignments among the GMTC members for compatible Access programming, for example, assigning all Educational Access Channels programmed by higher education organizations to the same Channel number. 9.9 Relocation of Access Channels Grantee shall provide the City with a minimum of ninety (90) days notice, and use its best efforts to provide one hundred twenty (120) days notice, prior to the time any Access Channel designation is changed, unless the change is required by federal law, in which case Grantee shall give the City the maximum notice possible In addition, Grantee shall pay to the City an amount equal to the City's costs in remarketing the location of the Access Channels and managing the relocation administratively and technologically, up to a maximum of fifty cents ($ .50) per Subscriber Grantee shall only be allowed to recover such amounts paid to City as "external costs" (as that term is used in 47 C F.R. Section 76.922) if the movement of Channels is required by federal, State or local law Grantee, at Grantee's expense, will place the City's notices of the Channel change on or with its regular monthly billings, upon the City's request. Any new Channel designations for the Access Channels provided pursuant to this Franchise shall be in full compliance with FCC signal quality and proof-of-performance standards 9.10 Access Interconnection Grantee acknowledges that is the City's goal to further the community's needs and interests by providing for the Interconnection of Access Channels between the City and surrounding communities. Therefore, Grantee shall continue -31- the Access Channel Interconnection which is in place as of the Effective Date which facilitates the sharing of Access programming between and among participating GMTC members In addition, the City shall have the right to use any Access Channel for Access programming provided to it through an Interconnect. 9.11 Return lines (A) Grantee shall, at its expense, continuously maintain throughout the life of this Franchise return lines to the Headend from City Hall located at 7500 West 29th Avenue and the Recreation Center located at 4005 Kipling Street in order to enable the distribution of Access programming to Residential Subscribers on the Access Channels, unless these locations are no longer used to originate Access programming in the future. Grantee shall construct return lines from two (2) additional sites in the City for the distribution of Access programming, upon written request from the City, at no cost to the City Such sites must be located no further than one hundred fifty (150) feet from the Cable System. City shall pay construction costs if the sites are located further than one hundred fifty (150) feet from Cable System. (B) Grantee shall construct and maintain new Fiber Optic return lines (in excess of the four (4) return lines referenced in paragraph A above) to the Headend from production facilities of new or relocated facilities delivering Access programming to Residential Subscribers as requested in writing by the City. All direct construction costs, including labor and materials, for these return lines shall be paid by the City or its designee, plus fifteen percent (15 %) for indirect costs. SECTION 10. INSTITUTIONAL NETWORK 10.1 Private Network The City and AT&T Broadband Network Solutions ("ABNS") will work together to install an I-Net This network will utilize the AT&T Broadband fiber infrastructure in the City as much as possible. The I-Net will not be used in any way that will intentionally or unreasonably interfere with the signal quality and the normal operation of the Grantee's Subscriber Network. The City has chosen the following sites to be on the network. City Hall Police Department Fire Station # 1 Fire Station # 2 Berbert House Wheat Ridge High School Public Works Building Anderson Building Recreation Center -32- Community Center Wheat Ridge Middle School Everitt Middle School West Jeffco Orug Task Force ABNS will work with the City to create an implementation plan that suits both parties. This plan will be included in an I-Net agreement reached by ABNS and the City. The cost of the I-net will be negotiated between ABNS and the City. ABNS will design the network with the most cost-effective manner. SECTION 11. GENERAL RIGHT-OF-WAY USE AND CONSTRUCTION 11.1 Conditions ot Rights-ot-Way Occupancy (A) Subject to the City's supervision and control, Grantee may erect, install, construct, repair, replace, reconstruct, and retain in, on, over, under, upon, across, and along the Rights-of-Way within the City such wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of a Cable System within the Franchise Area; subject to the provisions hereof and to all powers (including police powers) inherent in and conferred upon or reserved to the City. (B) No Right-of-Way shall be disturbed and no excavation in any of the said Rights-of-Way will be made, or any poles installed, except with the express written permission of the City. In the event that emergency repairs are necessary, Grantee shall immediately notify the City of the need for such repairs. Grantee may initiate such emergency repairs, and shall apply for appropriate permits within forty-eight (48) hours after discovery of the emergency. (C) The Cable System and other property and facilities of the Grantee shall be so located, constructed, installed and maintained so as not to endanger or unnecessarily interfere with the usual and customary trade, traffic and travel upon the Rights-of-Way and public places of the City. (0) Grantee must follow generally applicable City-established requirements for placement of Cable System facilities in Rights-of-Way, including the specific location of facilities in the Rights-of-Way, and must in any event install Cable System facilities in a manner that minimizes interference with the use of the Rights- of-Way by others, including others that may be installing communications facilities. The City may require that facilities in the Rights-of-Way be installed at a particular time, at a specific place or in a particular manner as a condition of access to a particular Right-of-Way; may deny access if Grantee is not willing to comply with City's requirements; and may remove, or require removal of, any facility that is not installed in compliance with the requirements established by the City, or which is -33- installed without prior City approval of the time, place or manner of installation, and charge Grantee for all the costs associated with removal; and may require Grantee to cooperate with others to minimize adverse impacts on the Rights-of-Way through joint trenching and other arrangements. (E) The Grantee shall, at the request of any person holding a building moving permit, and upon reasonable advance notice, temporarily raise or lower Its wires to permit the moving of said building. The expense of such temporary removal, raising or lowering of wires shall be paid by the Person requesting the same, and the Grantee shall have the authority to require such payment in advance. (F) The City may inspect all construction or installation work performed in the Rights-of-Way pursuant to this Franchise. 11.2 GIS Mapping Grantee shall comply with any generally applicable ordinances, rules and regulations of the City regarding geographic information mapping systems for users of the Rights-of-Way. 11.3 Hazardous Substances (A) Grantee shall comply with any and all applicable laws, statutes, regulations and orders concerning hazardous substances relating to the Cable System in the Rights-of-Way. (B) Upon reasonable notice to Grantee, the City may inspect the Cable System in the Rights-of-Way to determine if any release of hazardous substances has occurred, or may occur, from or related to the Cable System In removing or modifying the Cable System as provided in this Franchise, Grantee shall also remove all residue of hazardous substances related thereto. 11.4 Locates Prior to doing any work in the Rights-of-Way, Grantee shall give appropriate notices to the City and to the notification association established in C.R.S. Section 9-1.5-105, as such may be amended from time to time. Within forty-eight (48) hours after any City bureau or franchisee, licensee or permittee notifies Grantee of a proposed Rights-of-Way excavation, Grantee shall, at Grantee's expense: (A) Mark on the surface all of its located underground facilities within the area of the proposed excavation; (B) Notify the excavator of any unlocated underground facilities In the area of the proposed excavation; or -34- (C) Notify the excavator that Grantee does not have any underground facilities in the vicinity of the proposed excavation. 11.5 Notice to Private Property Owners Grantee shall give notice to private property owners of work on or adjacent to private property in accordance with the Customer Service Standards referenced in Section 6. 11.6 Underground Construction and Use of Poles (A) When required by general ordinances, resolutions, regulations or rules of the City or applicable State or federal law, the Cable System shall be placed underground at Grantee's expense. Placing facilities underground does not preclude the use of ground-mounted appurtenances. (B) Where electric, telephone, and other above-ground utilities are installed underground at the time of Cable System construction, or when all such wiring is subsequently placed underground, all Cable System lines shall also be placed underground with other wireline service at no expense to the City or Subscribers unless funding is generally available for such relocation to users of the Rights-of-Way. Related Cable System equipment, such as pedestals, must be placed in accordance with the City's applicable code requirements and rules. In areas where either electric or telephone utility wiring is aerial, the Grantee may install aerial cable, except when a property owner or resident requests underground installation and agrees to bear the additional cost in excess of aerial installation. (C) The Grantee shall utilize existing poles and conduit wherever possible. (0) In the event Grantee cannot obtain the necessary poles and related facilities pursuant to a pole attachment agreement, and only in such event, then it shall be lawful for Grantee to make all needed excavations in the Rights-of-Way for the purpose of placing, erecting, laying, maintaining, repairing, and removing poles, supports for wires and conductors, and any other facility needed for the maintenance or extension of the Cable System. All poles of Grantee shall be located as designated by the proper City authorities. (E) This Franchise does not grant, give or convey to the Grantee the right or privilege to install its facilities in any manner on specific utility poles or equipment of the City or any other Person. Copies of agreements for the use of poles, conduits or other utility facilities must be provided upon request by the City. (F) The Grantee and the City recognize that situations may occur in the future where the City may desire to place its own cable or conduit for Fiber Optic cable in trenches or bores opened by the Grantee. The Grantee agrees to cooperate with the City in any construction by the Grantee that involves trenching -35- or boring, provided that the City has first notified the Grantee in some manner that it IS interested in sharing the trenches or bores in the area where the Grantee's construction is occurring. The Grantee shall allow the City to lay its cable, conduit and Fiber Optic cable in the Grantee's trenches and bores, provided the City shares in the cost of the trenching and boring on the same terms and conditions as the Grantee at that time shares the total cost of trenches and bores. The City shall be responsible for maintaining ItS respective cable, conduit and Fiber Optic cable buried in the Grantee's trenches and bores under this paragraph 11.7 Undergrounding of Multiple Dwelling Unit Drops In cases of single site Multiple Dwelling Units, Grantee shall minimize the number of individual aerial drop cables by installing multiple drop cables underground between the pole and Multiple Dwelling Unit where determined to be technologically feasible in agreement with the owners and/or owner's association of the Multiple Dwelling Units. 11.8 Burial Standards (A) Depths. Unless otherwise required by law, Grantee shall comply with the following burial depth standards. In no event shall Grantee be required to bury its cable deeper than electric or gas facilities in the same portion of the Rights-of- Way. Underground cable drops from the curb shall be buried at a minimum depth of twelve (12) inches, unless a sprinkler system or other construction concerns preclude it, in which case, underground cable drops shall be buried at a depth of at least six (6) inches. Feeder lines shall be buried at a minimum depth of eighteen (18) inches. Trunk lines shall be buried at a minimum depth of thirty-six (36) inches Fiber OptiC cable shall be buried at a minimum depth of thirty-six (36) inches. (8) Timeliness. Cable drops installed by Grantee to residences shall be bUried according to these standards within one (1) calendar week of initial installation, or at a time mutually-agreed upon between the Grantee and the Subscriber. When freezing surface conditions prevent Grantee from achieving such timetable, Grantee shall apprise the Subscriber of the circumstances and the revised schedule for burial, and shall provide the Subscriber with Grantee's telephone number and instructions as to how and when to call Grantee to request burial of the line if the revised schedule is not met. -36- 11.9 Electrical Bonding Grantee shall ensure that all cable drops are properly bonded to the electrical power ground at the home, consistent with applicable code requirements. All non- conforming or non-performing cable drops shall be replaced by Grantee as necessary. 11 10 Prewiring Any ordinance or resolution of the City which requires prewlrlng of subdivisions or other developments for electrical and telephone service shall be construed to include wiring for cable systems. 11 .11 Repair and Restoration of Property (A) The Grantee shall protect public and private property from damage. If damage occurs, the Grantee shall promptly notify the property owner within twenty-four (24) hours in writing. (B) Whenever Grantee disturbs or damages any Rights-of-Way, other public property or any private property, Grantee shall promptly restore the Rights- of-Way or property to at least its prior condition, normal wear and tear excepted, at its own expense. (C) Rights-of-Way and Other Public Property Grantee shall warrant any restoration work performed by or for Grantee in the Rights-of-Way or on other public property for one (1) year. If restoration is not satisfactorily performed by the Grantee within a reasonable time, the City may, after prior notice to the Grantee, or without notice where the disturbance or damage may create a risk to public health or safety, cause the repairs to be made and recover the cost of those repairs from the Grantee Within thirty (30) days of receipt of an itemized list of those costs, including the costs of labor, materials and equipment, the Grantee shall pay the City. (0) Private Property. Upon completion of the work which caused any disturbance or damage, Grantee shall promptly commence restoration of private property, and will use best efforts to complete the restoration within seventy-two (72) hours, considering the nature of the work that must be performed. Grantee shall also perform such restoration in accordance with Wheat Ridge Code of Laws, including Ordinance 973, Series 1994 (Exhibit B), as amended. 11.12 Use of Conduits by the City. The City may install or affix and maintain wires and equipment owned by the City for City purposes in or upon any and all of Grantee's ducts, conduits or equipment in the Rights-of-Way and other public places, without charge to the City, -37- to the extent space therein or thereon is reasonably available, and pursuant to all applicable ordinances and codes. For the purposes of this subsection, "City purposes" Includes, but is not limited to, the use of the structures and installations for non-commercial City fire, police, traffic, water, telephone, and/or signal systems, but not for services in competition with Grantee. Grantee shall not deduct the value of such use of its facilities from its franchise fee payments or from other fees payable to the City. 11.13 Common Users (A) For the purposes of this subsection. (1) "Attachment" means any wire, optical fiber or other cable, and any related device, apparatus or auxiliary equipment, for the purpose of voice, video or data transmission. (2) "Conduit" or "Conduit Facility" means any structure, or section thereof, containing one or more Ducts, conduits, manholes, hand hole or other such facilities in the Cable System. (3) "Duct" means a single enclosed raceway for cables, Fiber Optics or other wires (4) "Licensee" means any Person licensed or otherwise permitted by the City to use the Rights-of-Way. (5) "Surplus Ducts or Conduits" are Conduit Facilities other than those occupied by Grantee or any prior Licensee, or unoccupied Ducts held by Grantee as emergency use spares, or other unoccupied Ducts that Grantee reasonably expects to use within two (2) years from the date of a request for use. (B) Grantee acknowledges that the Rights-of-Way have a finite capacity for containing conduits. Therefore, Grantee agrees that whenever the City determines it is impracticable to permit construction of an underground Conduit system by any other Person which may at the time have authority to construct or maintain Conduits or Ducts in the Rights-of-Way, but excluding Persons providing Cable Services in competition with Grantee, the City may require Grantee to afford to such person the right to use Grantee's Surplus Ducts or Conduits in common with Grantee, pursuant to the terms and conditions of an agreement for use of Surplus Ducts or Conduits entered into by Grantee and the Licensee. Nothing herein shall require Grantee to enter into an agreement with such Person if, in Grantee's reasonable determination, such an agreement could compromise the integrity of the Cable System -38- (C) A Licensee occupYing part of a Duct shall be deemed to occupy the entire Duct. (D) Grantee shall give a Licensee a minimum of one hundred twenty (120) days notice of Its need to occupy a licensed Conduit and shall propose that the Licensee take the first feasible action as follows. (1) Pay revised Conduit rent designed to recover the cost of retrofitting the Conduit with multiplexing, Fiber Optics or other space-saving technology sufficient to meet Grantee's space needs; (2) Pay revised Conduit rent based on the cost of new Conduit constructed to meet Grantee's space needs; (3) Vacate the needed Ducts or Conduit; or (4) Construct and maintain sufficient new Conduit to meet Grantee's space needs. (E) When two or more Licensees occupy a section of Conduit Facility, the last Licensee to occupy the Conduit Facility shall be the first to vacate or construct new Conduit. When Conduit rent is revised because of retrofitting, space-saving technology or construction of new Conduit, all Licensees shall bear the increased cost. (F) All Attachments shall meet local, State, and federal clearance and other safety requirements, be adequately grounded and anchored, and meet the provisions of contracts executed between Grantee and the Licensee. Grantee may, at its option, correct any attachment deficiencies and charge the Licensee for its costs. Each Licensee shall pay Grantee for any fines, fees, damages or other costs the Licensee's Attachments cause Grantee to incur (G) In order to enforce the provisions of this subsection with respect to Grantee, the City must demonstrate that it has required that all similarly situated users of the Rights-of-Way to comply with the provisions of this subsection 11 .14 Acquisition of Facilities Upon Grantee's acquisition of facilities in any City Rights-of-Way, or upon the addition to the City of any area in which Grantee owns or operates any facility, Grantee shall, at the City's request, submit to the City a statement describing all facilities involved, whether authorized by franchise, permit, license or other prior right, and specifying the location of all such facilities to the extent Grantee has possession of such information. Such facilities shall immediately be subject to the terms of this Franchise. -39- 11 .15 Movement of Cable System Facilities for City Purposes (A) The City shall have the right to require Grantee to relocate, remove, replace, modify or disconnect Grantee's facilities and equipment located in the Rights-of-Way or on any other property of the City in the event of an emergency or when reasonable public convenience requires such change (for example, without limitation, by reason of traffic conditions, public safety, Rights-of-Way vacation, Rights-of-Way construction, change or establishment of Rights-of-Way grade, installation of sewers, drains, gas or water pipes, or any other types of structures or improvements by the City for public purposes). Such work shall be performed at the Grantee's expense. Except during an emergency, the City shall provide reasonable notice to Grantee, not to be less than five (5) business days, and allow Grantee the opportunity to perform such action. In the event of any capital improvement project exceeding $ 500,000 in expenditures by the City which requires the removal, replacement, modification or disconnection of Grantee's facilities or equipment, the City shall provide at least sixty (60) days' written notice to Grantee (8) Following notice by the City, Grantee shall relocate, remove, replace, modify or disconnect any of its facilities or equipment within any Rights-of-Way, or on any other property of the City If the City requires Grantee to relocate its facilities located within the Rights-of-Way, the City shall make a reasonable effort to provide Grantee with an alternate location within the Rights-of-Way. If funds are generally made available to users of the Rights-of-Way for such relocation, Grantee shall be entitled to its pro rata share of such funds. If the Grantee fails to complete this work within the time prescribed and to the City's satisfaction, the City may cause such work to be done and bill the cost of the work to the Grantee, including all costs and expenses incurred by the City due to Grantee's delay. In such event, the City shall not be liable for any damage to any portion of the Cable System, except in the event the damage is caused by the willful misconduct or gross negligence of the City, its employees or agents. Within thirty (30) days of receipt of an itemized list of those costs, the Grantee shall pay the City. (C) If, at any time, in the case of fire, disaster or emergency in the City, it shall become necessary in the reasonable judgment of the City Manager, to cut or move any of the wires, cables, amplifiers, or other appurtenances of the Cable System to respond to such emergency, such cutting or removing may be done and any repairs rendered necessary thereby shall be made by the Grantee at its sole expense; provided, that such repairs are not necessitated by a negligent act of the City in which case costs of repairs shall be borne by the City. 11.16 Movement of Cable System Facilities for Other Franchise Holders If any removal, replacement, modification or disconnection of the Cable System is required to accommodate the construction, operation or repair of the -40- facilities or equipment of another City franchise holder, Grantee shall, after at least thirty (30) days' advance written notice, take action to effect the necessary changes requested by the responsible entity. Grantee may require that the costs associated with the removal or relocation be paid by the benefited party. 11.17 Tree Trimming Grantee may prune or cause to be pruned, using proper pruning practices, any tree in the Rights-of-Way which interferes with the Cable System. Grantee shall comply with any general ordinance or regulations of the City regarding tree trimming. Except in emergencies, Grantee may not prune trees at a point below thirty (30) feet above sidewalk grade until one (1) week written notice has been given to the owner or occupant of the premises abutting the Rights-of-Way in or over which the tree is growing. The owner or occupant of the abutting premises may prune such tree at his or her own expense during this one (1) week period. If the owner or occupant fails to do so, Grantee may prune such tree at its own expense. For purposes of this subsection, emergencies exist when it is necessary to prune to protect the public or the Cable System from imminent danger only. 11.18 Stop Work (A) On notice from the City that any work is being performed contrary to the provisions of this Franchise, or in an unsafe or dangerous manner as determined by the City, or in violation of the terms of any applicable permit, laws, regulations, ordinances, or standards, the work may immediately be stopped by the City. (B) The stop work order shall: (1) Be in writing; site; (2) Be given to the Person doing the work, or posted on the work (3) herein; Be sent to Grantee by overnight delivery at the address given (4) Indicate the nature of the alleged violation or unsafe condition; and (5) Establish conditions under which work may be resumed. 11.19 Work of Contractors and Subcontractors Grantee's contractors and subcontractors shall be licensed and bonded in accordance with the City's ordinances, regulations and requirements. Work by contractors and subcontractors is subject to the same restrictions, limitations and -41- conditions as if the work were performed by Grantee. Grantee shall be responsible for all work performed by its contractors and subcontractors and others performing work on Its behalf as If the work were performed by it, and shall ensure that all such work is performed in compliance with this Franchise and other applicable law, and shall be jointly and severally liable for all damages and correcting all damage caused by them. It is Grantee's responsibility to ensure that contractors, subcontractors or other Persons performing work on Grantee's behalf are familiar with the requirements of this Franchise and other applicable laws governing the work performed by them. 11.20 Discontinuing Use/Removal of Facilities (A) Whenever Grantee intends to discontinue using any facility within the Rights-of-Way, Grantee shall submit for the City's approval a complete description of the facility and the date on which Grantee intends to discontinue using the facility. Grantee may remove the facility or request that the City permit it to remain in place. Notwithstanding Grantee's request that any such facility remain in place, the City may require Grantee to remove the facility from the Rights-of-Way or modify the facility to protect the public health, welfare, safety, and convenience, or otherwise serve the public interest. The City may require Grantee to perform a combination of modification and removal of the facility. Grantee shall complete such removal or modification in accordance with a schedule set by the City. Until such time as Grantee removes or modifies the facility as directed by the City, or until the rights to and responsibility for the facility are accepted by another Person having authority to construct and maintain such facility, Grantee shall be responsible for all necessary repairs and relocations of the facility, as well as maintenance of the Rights-of-Way, in the same manner and degree as if the facility were in active use, and Grantee shall retain all liability for such facility. If Grantee abandons its facilities, the City may choose to use such facilities for any purpose whatsoever including, but not limited to, Access purposes. (8) If the Grantee fails to remove any property as herein required, the City may perform the work at the Grantee's expense. 11.21 Compliance with Code of Laws Grantee shall at all times comply with the Wheat Ridge Code of Laws, including without limitation, Chapter 21 thereof. 11.22 Reimbursement of Grantee Costs Grantee specifically reserves any rights it may have under law for reimbursement of costs related to undergrounding or relocation of the Cable System and nothing herein shall be construed as a waiver of any such rights. -42- SECTION 12. CABLE SYSTEM CONFIGURATION, TECHNICAL STANDARDS AND TESTING 12.1 Subscriber Network (A) Equipment must be installed so that all closed captioning programming received at the Headend is provided over the Cable System. Equipment must be installed so that all local signals received in stereo or with secondary audio tracks (broadcast and Access) are retransmitted in those same formats. In the case of AM/FM radio transmission, the above specifications, where applicable, shall apply (B) Grantee will take prompt corrective action if it finds that any facilities or equipment on the Cable System are not operating as expected, or if it finds that facilities and equipment do not comply with the requirements of this Franchise or applicable law. 12.2 State of the Art Grantee shall, every three (3) years following the Effective Date of this Franchise, provide detailed information to the City about Cable Services offered in "similarly situated" cable systems as the Cable System in the City. For purposes of this subsection, "similarly situated" cable systems shall mean the sixteen (16) largest cable systems, based upon the number of Subscribers covered by a single franchise document, owned and operated by Grantee or its Affiliates in the United States. If such Cable Services are not also being offered on the Cable System in the City, Grantee shall provide information on why such Cable Services are not being offered in the City and the cost to supply such Cable Services. If the identified Cable Services are being offered to Subscribers by Grantee or its Affiliates in eight (8) or more of the similarly-situated cable systems, the City may require that Grantee make available such Cable Services on the Cable System in the City Should the City determine that Grantee shall commence provision of such Cable Services, the City and Grantee shall negotiate a schedule for deployment that takes into consideration the impact on Subscriber rates, the ability of Grantee to recover the cost of such increased capacity or Cable Services over the remaining life of the Franchise from the incremental revenue derived from such additional Cable Services and the financial condition of Grantee. In addition, the City shall not be restricted from holding any hearing at any time to review whether or not the Cable System and the Cable Services offered by the Grantee are meeting demonstrated community needs. The parties recognize that, as of the Effective Date, the City is not permitted to require the provision of specific video programming pursuant to this subsection 12.3 Standby Power Grantee shall provide standby power generating capacity at the Cable System Headend capable of providing at least twelve (12) hours of emergency -43- operation. Grantee shall maintain standby power system supplies, rated for at least two (2) hours duration, throughout the trunk and distribution networks, and rated for at least four (4) hours duration at all Nodes and at all Hubs. In addition, throughout the term of this Franchise, Grantee shall have a plan in place, along with all resources necessary for implementing such plan, for dealing with outages of more than two (2) hours. This outage plan and evidence of requisite implementation resources shall be presented to the City no later than thirty (30) days following receipt of a request. 12.4 Emergency Alert Capability (A) Grantee shall provide the City an operating Emergency Alert System ("EAS") throughout the term of this Franchise in compliance with FCC standards. The City may use the EAS, under procedures established between the City and the Grantee which are consistent with Grantee's State and federal EAS requirements, to transmit an emergency alert signal, including the ability to override the audio and video on all Channels throughout the City from the City's Emergency Operations Center or other location as may be designated by the City. Grantee shall test the EAS as required by the FCC Upon request, the City shall be permitted to participate in and/or witness the EAS testing up to twice a year on a schedule formed in consultation with Grantee. If the test indicates that the EAS is not performing properly, Grantee shall make any necessary adjustment to the EAS, and the EAS shall be retested. (8) The City shall permit only appropriately trained and authorized Persons to operate the EAS equipment provided pursuant to this subsection. Grantee shall provide training to City personnel in the operation of the EAS as requested by the City 12.5 Technical Performance The technical performance of the Cable System shall meet or exceed all applicable federal (including, but not limited to, the FCC), State and local technical standards, as they may be amended from time to time, regardless of the transmission technology utilized. The City shall have the full authority permitted by applicable law to enforce compliance with these technical standards. 12.6 Cable System Performance Testing (A) Grantee shall, at Grantee's expense, perform the following tests on the Cable System' (1) All tests required by the FCC; -44- (2) All other tests reasonably necessary to determine compliance with technical standards adopted by the FCC at any time during the term of this Franchise; and (3) All other tests as otherwise specified In this Franchise. (B) At a minimum, Grantee's tests shall include: (1) Cumulative leakage index testing of any new construction; (2) Semi-annual compliance and proof of performance tests In conformance with generally accepted industry guidelines; (3) Tests in response to Subscriber complaints; (4) Periodic monitoring tests, at intervals not to exceed six (6) months, of Subscriber (field) test points, the Headend, and the condition of standby power supplies, and (5) Cumulative leakage index tests, at least annually, designed to ensure that one hundred percent (100%) of the Cable System has been ground or air tested for signal leakage in accordance with FCC standards. (C) Grantee shall maintain written System tests, performed by or for Grantee. provided to the City upon request. records of all results of its Cable Copies of such test results will be (D) If the FCC no longer requires proof of performance tests for the Cable System during the term of this Franchise, Grantee agrees that it shall continue to conduct proof of performance tests on the Cable System in accordance with the standards that were in place on the Effective Date, or any generally applicable standards later adopted, at least once a year, and provide written results of such tests to the City upon request. (E) The FCC semi-annual testing IS conducted in January/February and July/August of each year. If the City contacts Grantee prior to the next test period (i.e., before December 15 and June 15 respectively of each year), Grantee shall provide City with no less than seven (7) days prior written notice of the actual date(s) for FCC compliance testing. If City notifies Grantee by the December 15th and June 15th dates that it wishes to have a representative present during the next test(s), Grantee shall cooperate in scheduling its testing so that the representative can be present Notwithstanding the above, all technical performance tests may be witnessed by representatives of the City. (F) Grantee shall be required to promptly take such corrective measures as are necessary to correct any performance deficiencies fully and to prevent their -45- recurrence as far as possible. Grantee's failure to correct deficiencies identified through this testing process shall be a material violation of this Franchise. Sites shall be re-tested following correction. 12.7 Additional Tests Where there exists other eVidence which in the judgment of the City casts doubt upon the reliability or technical quality of Cable Service, the City shall have the right and authority to require Grantee to test, analyze and report on the performance of the Cable System. Grantee shall fully cooperate with the City in performing such testing and shall prepare the results and a report, if requested, within thirty (30) days after testing. Such report shall include the following information. (A) the nature of the complaint or problem which precipitated the special tests; (8) the Cable System component tested; (C) the equipment used and procedures employed in testing; (D) the method, if any, in which such complaint or problem was resolved; and (E) Any other information pertinent to said tests and analysis which may be required. SECTION 13. SERVICE EXTENSION, INTERCONNECTION AND SERVICE TO PUBLIC BUILDINGS 13.1 Universal Service Grantee shall not arbitrarily refuse to provide Cable Services to any Person within its Franchise area. All Dwelling Units, Multiple Dwelling Units and commercial establishments in the Franchise Area shall have the same availability of Cable Services from Cable System under non-discriminatory rates and reasonable terms and conditions The City acknowledges that Grantee cannot control the dissemination of particular Cable Services beyond the point of demarcation at a Multiple Dwelling Unit. Notwithstanding the foregoing, Grantee may introduce new or expanded Cable Services on a geographically phased basis, where such services require an Upgrade of the Cable System. Grantee may also charge for line extensions and non-standard installations pursuant to subsection 13.2. -46- 13.2 Service Availability (A) In General. Except as otherwise provided herein, Grantee shall provide Cable Service within seven (7) days of a request by any Person within the City. For purposes of this subsection, a request shall be deemed made on the date of signing a service agreement, receipt of funds by Grantee, receipt of a written request by Grantee or receipt by Grantee of a verified verbal request. Grantee shall provide such service' (1) With no line extension charge except as specifically authorized in this Franchise (2) At a non-discriminatory installation charge for a standard installation, consisting of a one hundred fifty (150) foot drop connecting to an inside wall for Residential subscribers, with additional charges for non- standard installations computed according to a non-discriminatory methodology for such installations, adopted by Grantee and provided in writing to the City, (3) At non-discriminatory monthly rates for Residential Subscribers. (8) Required Extensions of the Cable System Not including individual drops, Grantee must extend the Cable System without charge to individual Subscribers and make Cable Service available anywhere in the Franchise Area with the minimum density of at least twenty-five (25) Dwelling Units per 5280 cable- bearing strand feet of trunk or distribution cable as measured from the existing Cable System (C) Service to Multiple Dwelling Units. The Grantee shall offer the individual units of a Multiple Dwelling Unit all Cable Services offered to other Dwelling Units in the City and shall individually wire units upon request of the property owner or renter who has been given written authorization by the owner; provided, however, that any such offering is conditioned upon the Grantee having legal access to said unit The City acknowledges that the Grantee cannot control the dissemination of particular Cable Services beyond the point of demarcation at a Multiple Dwelling Unit (D) Customer Charges for Extensions of Service. No customer shall be refused service arbitrarily However, for unusual circumstances, such as a customer's request to locate the cable drop underground, in an area where drops would usually be aerial, or if the customer is in an area that does not meet the density requirements of paragraph 8 above, Cable Service may be made available on the basis of a capital contribution in aid of construction, including cost of material, labor and easements. For the purpose of determining the amount of capital contribution in aid of construction to be borne by the Grantee and customers in the area to which Cable Service may be extended, the Grantee will -47- contribute an amount equal to the construction and other costs per mile, multiplied by a fraction whose numerator equals the actual number of Dwelling Units per 5280 cable-bearing strand feet of its trunk or distribution cable to be extended and whose denominator equals twenty-five (25). Customers who request Cable Service hereunder will bear the remainder of the construction and other costs on a pro rata basis. The Grantee may require that the payment of the capital contribution in aid of construction borne by such potential customers be paid in advance (E) Annexations. (1) In the event that the City annexes any territory into the Franchise Area, the City shall provide Grantee with a list of the specific addresses affected by the annexation. (2) In the event that the City annexes territory that is contiguous to the current Franchise Area and not being provided Cable Service by the Grantee or an Affiliate of Grantee, Grantee agrees that it will extend its Cable System into the newly annexed territory under the terms of paragraph B above. Upon such annexation and request by the City, Grantee shall meet with the City, within thirty (30) days of the request, to coordinate and agree upon a reasonable time table for extension of the Cable System into the annexed territory. (3) In the event the City annexes territory that is currently being provided Cable Service by Grantee or an Affiliate of Grantee, but not the same Cable Service as provided within the current Franchise Area, Grantee shall estimate the cost to make such adjustments to the Cable System as is necessary to provide the same Cable Service to the annexed area. If requested by the Grantee, Grantee and the City shall discuss the cost of such adjustment and potential impact on Subscriber rates within one hundred twenty (120) days of Grantee's receipt of notification of the annexation. Unless waived by the City, Grantee shall make the required adjustments to the Cable System and billing system to provide the same Cable Service to the annexed area within two (2) years of receipt of the annexation notification (4) In the event that the City annexes territory that is not contiguous to the current Franchise Area, Grantee shall have no obligation to extend to such area; provided, however that if Grantee and/or an Affiliate has permission from the appropriate government authority to use the intervening Rights-of-Way for this purpose, either by franchise or separate agreement, Grantee shall extend or adjust the Cable System in accordance with paragraphs (2) or (3) above. (5) If Grantee finds it convenient for any of the annexed territory to be served by an Affiliate versus the Grantee, it is understood by the parties -48- that the rights, benefits and obligations of this Franchise shall apply to such Affiliate for the annexed area, without the need for transfer approval of the City. 13.3 Interconnection With Other Cable Systems (A) The Cable System shall be Interconnected with other contiguous, GMTC area cable systems that are owned and operated by Grantee or an Affiliate, provided that such systems are served by the same Headend that serves the Franchise Area. (B) Grantee shall, in accordance with this subsection, Interconnect the Access Channels of the Cable System with any other contiguous cable system not owned or operated by Grantee or an Affiliate of Grantee upon the directive of the City. Interconnection of Channels may be done by direct cable connection, microwave link, satellite or other appropriate methods. The City shall not direct interconnection except under circumstances where it can be accomplished without undue burden or excessive costs to the Subscribers as reasonably determined by the City. Grantee shall not be required to Interconnect with the other cable system unless the operator of that system is willing to do so and pays for its own cost of constructing and maintaining the Interconnect up to the demarcation point. (C) Grantee shall only be required to Interconnect Access Channels with an overbuilder in the City in the event that the overbuilder proves to the City that it would be economically burdensome to its Subscribers to construct and maintain return lines directly from the origination point(s) of the Access Channel(s) versus Interconnecting with Grantee. In the event Grantee receives a directive from the City to Interconnect with an overbuilder, Grantee shall immediately initiate negotiations with the other affected cable system or systems and shall report to the City the results of such negotiations no later than sixty (60) days after such initiation. The overbuilder shall be responsible for Grantee's costs in constructing and maintaining the Interconnect. If the parties cannot reach agreement on the terms of the Interconnect, including compensation and timing, the dispute shall be submitted to the City for determination and resolution. Additionally, Grantee shall only be required to Interconnect with an overbuilder if the overbuilder is providing similar support for Access as required of Grantee pursuant to this Franchise. (0) Grantee shall explore with any public interconnection authority, regional interconnection authority or City, County, State or federal regulatory agency which may hereafter be established for the purpose of regulating, financing or otherwise providing for the Interconnection of cable systems beyond the boundaries of the City, the possibility of further Interconnects. -49- 13.4 Connection of Public Facilities Grantee shall, at no cost to the City, continue to provide one outlet of Basic Service and Expanded Basic Service to all City owned and occupied buildings, all schools and all public libraries where such service IS provided as of the Effective Date of this Franchise. For purposes of this subsection, "school" means all state- accredited K-12 public and private schools. In addition, upon request, Grantee shall provide, at no cost to the City or other entity, one outlet of Basic Service and Expanded Basic Service to additional owned or leased and occupied City buildings, schools and libraries if the drop Ime from the feeder cable to such building does not exceed one hundred fifty feet (150') or if the City or other entity agrees to pay the incremental cost of such drop line in excess of one hundred fifty feet (150'). including the cost of such excess labor and materials. Such obligation to provide free Cable Service shall not extend to areas of City buildings where the Grantee would normally enter into a commercial contract to provide such Cable Service (e.g., golf courses, airport restaurants and concourses, and recreation center work out facilities). Outlets of Basic and expanded Basic Service provided in accordance with this subsection may be used to distribute Cable Services throughout such buildings, provided such distribution can be accomplished without causing Cable System disruption and general technical standards are maintained. Such outlets may only be used for lawful purposes. SECTION 14. FRANCHISE VIOLATIONS 14.1 Procedures for Remedying Franchise Violations (A) If the City Manager believes that Grantee has failed to perform any obligation under this Franchise or has failed to perform in a timely manner, the City Manager shall notify Grantee in writing, stating with reasonable specificity the nature of the alleged default. Grantee shall have thirty (30) days from the receipt of such notice to. (1) respond to the City Manager, contesting the City Manager's assertion that a default has occurred; or (2) cure the default; or (3) notify the City Manager that Grantee cannot cure the default within the thirty (30) days, because of the nature of the default. In the event the default cannot be cured within thirty (30) days, Grantee shall promptly take all reasonable steps to cure the default and notify the City Manager in writing and in detail as to the exact steps that will be taken and the projected completion date. In such case, the City Manager may set a meeting in accordance with paragraph (B) below to determine whether additional time beyond the thirty (30) days specified above is indeed needed, -50- and whether Grantee's proposed completion schedule and steps are reasonable. (B) If Grantee does not cure the alleged default within the cure period stated above, or by the projected completion date under paragraph (A)(3), or denies the default and the City intends to continue its investigation into the default, or the City Manager orders a meeting in accordance with paragraph (A)(3), the City Manager shall set a meeting to investigate said issues or the existence of the alleged default. The City Manager shall notify Grantee of the meeting in writing and such meeting shall take place no less than thirty (30) days after Grantee's receipt of notice of the meeting. At the meeting, Grantee shall be provided an opportunity to be heard and to present evidence in its defense. (C) If, after the meeting, the City Manager determines that a default exists, the City Manager shall order Grantee to correct or remedy the default or breach within fifteen (15) days or within such other reasonable time frame as the City Manager shall determine. In the event Grantee does not cure within such time to the City Manager's reasonable satisfaction, the City Manager may: (1 ) damages; Withdraw an amount from the letter of credit as monetary (2) Recommend the revocation of this Franchise pursuant to the procedures in subsection 14.2, or (3) Recommend any other legal or equitable remedy available under this Franchise or any applicable law. (D) The determination as to whether a violation of this Franchise has occurred shall be within the discretion of the City Manager, provided that Grantee may appeal any such final determination to the District Court for Jefferson County, Colorado if the matter is solely contractual and does not raise issues of federal law. If the matter raises issues of federal law, Grantee may appeal to federal court. 14.2 Revocation (A) In addition to revocation in accordance with other provisions of this Franchise, the City may revoke this Franchise and rescind all rights and privileges associated with this Franchise in the following circumstances, each of which represents a material breach of this Franchise: (1) If Grantee fails to perform any material obligation under this Franchise or under any other agreement, ordinance or document regarding the City and Grantee; -51- (2) If Grantee willfully fails for more than forty-eight (48) hours to provide continUOUS and uninterrupted Cable Service; (3) If Grantee attempts to evade any material provIsion of this Franchise or to practice any fraud or deceit upon the City or Subscribers; or (4) If Grantee becomes insolvent, or if there is an assignment for the benefit of Grantee's creditors; (5) If Grantee makes a material misrepresentation of fact in the application for or negotiation of this Franchise (8) Prior to forfeiture or termination of the Franchise, the City shall give written notice to the Grantee of its intent to revoke the Franchise. The notice shall set forth the exact nature of the noncompliance. Grantee shall have thirty (30) days from such notice to object in writing and to state its reasons for such objection and provide any explanation In the event the City has not received a satisfactory response from Grantee, it may then seek a termination of the Franchise by the City Council in accordance with this subsection. (C) Any proceeding under the paragraph above shall be conducted by the City Council and open to the public. Grantee shall be afforded at least forty-five (45) days prior written notice of such proceeding. (1) At such proceeding, Grantee shall be provided a fair opportunity for full participation, including the right to be represented by legal counsel, to introduce evidence, and to subpoena and question witnesses. A complete verbatim record and transcript shall be made of such proceeding and the cost shall be shared equally between the parties. The City Council shall hear any Persons interested in the revocation, and shall allow Grantee, in particular, an opportunity to state its position on the matter (2) Within ninety (90) days after the hearing, the City Council shall determine whether to revoke the Franchise and declare that the Franchise is revoked and the letter of credit forfeited; or if the breach at issue is capable of being cured by Grantee, direct Grantee to take appropriate remedial action within the time and in the manner and on the terms and conditions that the City Council determines are reasonable under the circumstances. If the City determines that the Franchise is to be revoked, the City shall set forth the reasons for such a decision and shall transmit a copy of the decision to the Grantee. Grantee shall be bound by the City's decision to revoke the Franchise unless it appeals the decision to a court of competent jurisdiction within fifteen (15) days of the date of the decision. (3) Grantee shall be entitled to such relief as the Court may deem appropriate. -52- (4) The City Council may at Its sole discretion take any lawful action which it deems appropriate to enforce the City's rights under the Franchise in lieu of revocation of the Franchise. 14.3 Procedures in the Event of Termination or Revocation (A) If this Franchise expires without renewal or is otherwise lawfully terminated or revoked, the City may, subject to applicable law: (1) Allow Grantee to maintain and operate the Cable System on a month-to-month basis or short-term extension of this Franchise for not less than six (6) months, unless a sale of the Cable System can be closed sooner or Grantee demonstrates to the City's satisfaction that it needs additional time to complete the sale; or (2) Purchase Grantee's Cable System In accordance with the procedures set forth in subsection 14.4 below. (S) In the event that a sale has not been completed in accordance with paragraphs (A)(1) and/or (A)(2) above, the City may order the removal of the above-ground Cable System facilities and such underground facilities from the City at Grantee's sole expense within a reasonable period of time as determined by the City. In removing its plant, structures and equipment, Grantee shall refill, at is own expense, any excavation that is made by it and shall leave all Rights-of-Way, public places and private property in as good condition as that prevailing prior to Grantee's removal of its equipment without affecting the electrical or telephone wires or attachments. The indemnification and insurance provisions and the letter of credit shall remain in full force and effect during the period of removal, and Grantee shall not be entitled to, and agrees not to request, compensation of any sort therefor. (C) If Grantee fails to complete any removal required by paragraph (S) to the City's satisfaction, after written notice to Grantee, the City may cause the work to be done and Grantee shall reimburse the City for the costs incurred within thirty (30) days after receipt of an itemized list of the costs, or the City may recover the costs through the letter of credit provided by Grantee. (0) The City may seek legal and equitable relief to enforce the provisions of this Franchise. 14.4 Purchase of Cable System If at any time this Franchise is revoked, terminated, or not renewed upon expiration in accordance with the provisions of federal law, and the City acquires ownership of the Cable System or effects a transfer of ownership of the Cable -53- System to another Person, the price for the Cable System shall be determined as follows. (A) In the case of the expiration of the Franchise without renewal, at fair market value determined on the basis of the Cable System valued as a gOing concern, but with no value allocated to the Franchise itself. In order to obtain the fair market value, this valuation shall be reduced by the amount of any lien, encumbrance, or other obligation of Grantee which the City would assume. (8) System. In the case of revocation for cause, the equitable price of the Cable 14.5 Receivership and Foreclosure (A) At the option of the City, subject to applicable law, this Franchise may be revoked one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of Grantee whether in a receivership, reorganization, bankruptcy or other action or proceeding, unless: (1) The receivership or trusteeship is vacated within one hundred twenty (120) days of appointment; or (2) The receivers or trustees have, within one hundred twenty (120) days after their election or appointment, fully complied with all the terms and provisions of this Franchise, and have remedied all defaults under the Franchise Additionally, the receivers or trustees shall have executed an agreement duly approved by the court having jurisdiction, by which the receivers or trustees assume and agree to be bound by each and every term, provision and limitation of this Franchise. (8) If there is a foreclosure or other involuntary sale of the whole or any part of the Cable System in the Right-of-Way, the City may serve notice of revocation on Grantee and to the purchaser at the sale, and the rights and privileges of Grantee under this Franchise shall be revoked thirty (30) days after service of such notice, unless: (1) The City has approved the transfer of the Franchise, in accordance with the procedures set forth in this Franchise and as provided by law; and (2) The purchaser has covenanted and agreed with the City to assume and be bound by all of the terms and conditions of this Franchise. -54- 14.6 No Monetary Recourse Against the City Grantee shall not have any monetary recourse against the City or its officers, officials, boards, commissions, agents or employees for any loss, costs, expenses or damages arising out of any provision or requirement of this Franchise or the enforcement thereof, in accordance with the provisions of applicable federal, State and local law. The rights of the City under this Franchise are in addition to, and shall not be read to limit, any immunities the City may enjoy under federal, State or local law. 14.7 Alternative Remedies No provision of this Franchise shall be deemed to bar the right of the City to seek or obtain judicial relief from a violation of any provision of the Franchise or any rule, regulation, requirement or directive promulgated thereunder. Neither the existence of other remedies identified in this Franchise nor the exercise thereof shall be deemed to bar or otherwise limit the right of the City to recover monetary damages for such violations by Grantee, or to seek and obtain judicial enforcement of Grantee's obligations by means of specific performance, injunctive relief or mandate, or any other remedy at law or in equity. 14.8 Assessment of Monetary Damages (A) The City may assess against Grantee monetary damages up to two hundred fifty dollars ($250.00) per day for any material breaches or defaults, and withdraw the assessment from the letter of credit or collect the assessment as specified in this Franchise. To assess any amount from the letter of credit, City shall follow the procedures for withdrawals from the letter of credit set forth in the letter of credit and in the Franchise. Such damages shall accrue beginning thirty (30) days following Grantee's receipt of the notice required by paragraph 14.1 (A), or such later date if approved by the City in its sole discretion, but may not be assessed until after the procedures in subsection 14.1 have been completed. (8) The assessment does not constitute a waiver by City of any other right or remedy it may have under the Franchise or applicable law, including its right to recover from Grantee any additional damages, losses, costs and expenses that are incurred by City by reason of the breach of this Franchise. 14.9 Effect of Abandonment If the Grantee abandons the Cable System during the Franchise term, or fails to operate the Cable System in accordance with its duty to provide continuous service, the City, at its option, may operate the Cable System; designate another entity to operate the Cable System temporarily until the Grantee restores service under conditions acceptable to the City, or until the Franchise is revoked and a new franchisee is selected by the City; or obtain an injunction requiring the Grantee to -55- continue operations. If the City is required to operate or designate another entity to operate the Cable System, the Grantee shall reimburse the City or its designee for all reasonable costs, expenses and damages incurred. 14.10 What Constitutes Abandonment The City shall be entitled to exercise its options in subsection 14.9 if: (A) The Grantee fails to provide Cable Service in accordance with this Franchise over a substantial portion of the Franchise Area for four (4) consecutive days, unless the City authorizes a longer interruption of service; or (8) The Grantee, for any period, willfully and without cause refuses to provide Cable Service in accordance with this Franchise. SECTION 15. FRANCHISE RENEWAL AND TRANSFER 15.1 Renewal This Franchise shall be renewed pursuant to the procedures set forth In applicable federal, state, or local laws. 15.2 Transfer and Change of Control (A) The Franchise shall not be assigned or transferred, either in whole or In part, or leased, sublet or mortgaged in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any Person without the prior written consent of the City. The Grantee may, however, transfer or assign the Franchise to an Affiliate of the Grantee, and such Affiliate may transfer or assign the Franchise back to the Grantee or to another Affiliate without such consent. Further, Grantee may pledge the assets of the Cable System for the purpose of financing without the consent of the City; provided that such pledge of assets shall not impair or mitigate Grantee's responsibilities and capabilities to meet all of its obligations under the provisions of this Franchise. (8) Any proposed assignee must show financial responsibility as determined by the City pursuant to applicable law and must agree to comply with all provisions of the Franchise. The City shall be deemed to have consented to a proposed transfer or assignment in the event its refusal to consent is not communicated in writing to the Grantee within sixty (60) days following the receipt of written notice of the proposed transfer or assignment. (C) The Grantee shall promptly notify the City of any actual or proposed change in, or transfer of, or acquisition by any party of control of the Grantee. The word "control" is used herein and is not limited to major stockholders but includes actual working control in whatever manner exercised. Every change, transfer or -56- acquIsition of control of the Grantee (except the Affiliate transfer described in paragraph (A) above) shall make the Franchise subject to cancellation unless and until the City shall have consented thereto, which consent will not be unreasonably withheld For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, the City may inquire into the qualifications of the prospective controlling party, and the Grantee shall assist in any such inquiry. In addition to those criteria mentioned above for determining whether or not to approve any such change, transfer or acquisition, the Council may also look into the legal and technical qualifications of the proposed assignee or controlling party pursuant to applicable law. (0) The consent or approval of the Council to any transfer shall not constitute a waiver or release of the rights of the City in and to the Rights-of-Way, and any transfer shall by its terms, be expressly subordinate to the terms and conditions of the Franchise SECTION 16. MISCELLANEOUS PROVISIONS 16.1 Compliance with State and Federal Laws Notwithstanding any other provision in this Franchise to the contrary, the Grantee shall at all times comply with all laws and regulations of the State and federal governments or any administrative agencies thereof. Provided, however, if any such State or federal law or regulation shall prohibit the Grantee from performing any obligation required by this Franchise or of any law or regulation of the City, then as soon as possible following knowledge thereof, the Grantee shall notify the City of the point of conflict believed to exist between such regulation or law and the laws or regulations of the City or this Franchise. 16.2 Notice All notices from the Grantee to the City pursuant to this Franchise shall be to the City Manager or to such other officers designated by the Council. The Grantee shall maintain with the City, throughout the term of the Franchise, an address for service of all notices by mail. The notices or responses to the City shall be addressed as follows: City of Wheat Ridge Attn: City Manager 7500 West 29th Avenue Wheat Ridge, CO 8021 5 -57- With a copy to: City of Wheat Ridge Attn. City Attorney 7500 West 29th Avenue Wheat Ridge, CO 80215 The notices or responses to Grantee shall be addressed as follows: TCI Cablevision of Colorado, Inc. I/k/a AT&T Broadband Attn: Government Affairs Department 8000 East Iliff Avenue Denver, CO 80231 With a copy to. TCI Cablevision of Colorado, Inc. I/k/a AT&T Broadband Attn: Legal Department / Local Government Affairs 188 Inverness Dr. West Englewood, CO 80112 The Franchising Authority and Grantee may designate such other address or addresses from time to time by giving notice to the other in the manner provided for in this subsection. 16.3 Nondiscrimination in Employment (A) The Grantee shall strictly adhere to the equal employment opportunity requirements of the FCC. (B) The Grantee shall comply at all times With all other applicable Federal, State, City ordinances and laws, and all executive and administrative orders relating to nondiscrimination in employment 16.4 Costs to be Borne by Grantee (A) Costs to be borne by the Grantee shall include all costs of publication of this Franchise as required by law, and any and all notices prior to any public meeting provided for pursuant to this Franchise. (B) Grantee shall also pay for all costs and expenses involved with the modification or transfer of this Franchise requested by Grantee, whether such costs and expenses result from accrued City in-house staff time, or out of pocket -58- expenses or administrative costs, as well as expenses of retaining independent consultants, attorneys or advisors, up to a maximum amount as mutually-agreed upon by the parties at the time of application for such modification or transfer. 16.5 Binding Effect ThIs Franchise shall be binding upon the parties hereto, their permitted successors and assigns. 16.6 Jurisdiction Jurisdiction and venue for any judicial dispute between the City and Grantee arising under or out of this Franchise shall be proper and exclusive in federal or state court of proper jurisdiction in Colorado. 16.7 No Joint Venture Nothing herein shall be deemed to create a joint venture or principal-agent relationship between the parties, and neither party is authorized to, nor shall either party act toward third Persons or the public in any manner which would indicate any such relationship with the other. 16.8 Waiver The failure of the City at any time to require performance by the Grantee of any provision hereof shall in no way affect the right of the City hereafter to enforce the same. Nor shall the waiver by the City of any breach of any provision hereof be taken or held to be a waiver of any succeeding breach of such provision, or as a waiver of the provision itself or any other provision. 16.9 Release and Waiver of Claims Under Prior Franchise The parties agree that this Franchise replaces in its entirety that Permit Agreement entered into on July 13, 1982 between the City and American Cablevision of Wheat Ridge, a division of American Television and Communications Corporation (predecessor in interest to Grantee), which Permit is extinguished and cancelled hereby. The parties agree that as a condition of the effectiveness of this Franchise, and in full settlement of Grantee's obligations under the July 13, 1982 Permit, Grantee shall pay to the City the amount of $60,000 Grantee shall also donate to the City production equipment for its City Council chambers that can be used to film a live-feed production or taped production of the City Council meetings and any other function to take place in City Council chambers The equipment will include the equipment listed in Exhibit C. Grantee shall also install this equipment The City shall own and maintain the equipment once the equipment is installed. -59- No part of this donation may be recovered by Grantee from any form of Subscriber fee, charge or surcharge Upon such payment, Grantee shall be fully released and discharged from any and all claims arising from the July 13, 1982 Permit and the Permit shall be deemed terminated. Such donation to the City shall not be construed as an admission on behalf of Grantee of any noncompliance under the July 13, 1982 Permit. 16.10 Entire Agreement This Franchise and all Exhibits represent the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersede all prior oral negotiations between the parties. 16.11 Severability If any Section, subsection, paragraph, term or provIsion of this Franchise is determined to be illegal, invalid or unconstitutional by any court or agency of competent jurisdiction, such determination shall have no effect on the validity of any other Section, subsection, paragraph, term or provision of this Franchise, all of which will remain in full force and effect for the term of the Franchise. 16.12 Descriptive Headings The headings and titles of the Sections and subsections of this Franchise are for reference purposes only, and shall not affect the meaning or interpretation of the text herein. IN WITNESS WHEREOF, this Franchise is signed in the name of the City of Wheat Ridge, Colorado this ~ day of' (!, 2001. ATTEST: CITY OF WHEAT RIDGE, COLORADO: / r .> ._.....1 " ' / APPROVED AS TO FORM. RECOMMENDED AND APPROVED: ~.~ ~b)y City Attorney 4!24vL_r City Manager -60- Accepted and approved this l-3'1.-. day of MOJ th." 2001 . Tyr"CJ.:BLEVISION OF COLORADO, INC. / . l /:.1. / ' 51 . I f I / ,r I / \ \ :. I I ! ~~. l '~J~-- Jos~ph R. Stackhouse Serlior Vice President -61- EXHIBIT A MEMBERS OF THE GREATER METRO TELECOMMUNICATIONS CONSORTIUM Adams County Arapahoe County City of Arvada City of Aurora City of Brighton City of Broomfield City of Castle Rock Cherry Hills Village Commerce City City and County of Denver Douglas County City of Edgewater City of Englewood City of Glendale City of Golden Greenwood Village City of Idaho Springs Jefferson County City of Lafayette City of Lakewood City of Littleton City of Lone Tree City of Northglenn City of Parker City of Sheridan City of Thornton City of Westminster City of Wheat Ridge -1- EXHIBIT B CUSTOMER SERVICE STANDARDS Wheat Ridge Code of laws. Ordinance 973. Series 1994 (attached) -- INTRODUCED BY COUNCIL MEMBER EDWARDS Council Bill No. ~ ORDINANCE NO. 973 Series of 1994 TITLE: AN ORDINANCE REPEALING SECTION 21A-8 (B), AND SECTION 21A-22, AND REPEALING AND REENACTING SECTION 21A-14 OF THE CODE OF LAWS OF THE CITY OF WHEAT RIDGE, COLORADO TO ESTABLISH CUSTOMER SERVICE REQUIREMENTS FOR THE OPERATION OF CABLE SYSTEMS WITHIN THE CITY PURSUANT TO SECTION 522 OF TITLE 47 OF THE UNITED STATES CODE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COL9RADO, THAT: Section 1. section 552 of Title 47 of the united States Code authorizes local franchising authorities to "establish and enforce customer service requirements" upon cable operators within their jurisdictions. Section 2. Section 21A-3 (B) and Section 21A-22 of the Code of laws of the city of Wheat Ridge, Colorado are hereby repealed. section 3. Section 21A-14 is repealed and reenacted to incorporate in its entirety the standards shown as exhibit 1 with the new section title, "Customer Service Standards". section 4. Safety Clause. The City Council hereby finds, determines, and declares that this ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public, and that this ordinance is necessary for the preservation of health and safety dnd for the protection of public convenience and welfare. The City Council further determines that the ordinance bears a rational relation to the proper legislative object sought to be attained. Section 5. Severability. If any clause, sentence, paragraph, or part of this ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this ordinance or its application to other persons or circumstances. section 6. This ordinance shall take effect one day after final publication. INTRODUCED, READ, AND ADOPTED on first re3ding by a vote of ~ to ,1 on this 25 ch day of June ,] 994, ordered published in full in a newspaper of general circulation in the City of Wheat Ri~ge "nd Public Hearing and consideration on final passage set for Jill:; ~~, 1994, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. / r r- READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of ~ to ~, this 25th day of Ju1 Y , 1994. SIGNED by the Mayor on this 26th day of July 1994. ~~ Dan Wilde, Mayor 1st Publication: July 5, 1994 2nd Publication: Augus t 2, 1994 Wheat Ridge sentinel Effective Date: August 3, 1994 APPROVED AS TO FORM BY CITY ATTORNEY ~~~ Kathr n S roeaer, CITY ATTORNEY ..- EXHIBIT 1 GREATER METRO CABLE CONSORTIUM CUSfOMER SERVICE SfANDARDS I. POLICY The Cable Operator should be permitted the option and autonomy to first resolve citizen complaints without delay and interference from the Franchising Authority. Where a given complaint is not addressed by the Cable Operator to the citizen's satisfaction, the Franchising Authority should intervene. In addition, where a pattern of, or unremedied, noncompliance with the Standards is identified, the Franchising Authority should prescribe a cure and establish a 30 day deadline for implementation of the cure. If the noncompliance is not cured within 30 days, monetary sanctions should be imposed to encourage compliance. These Standards are intended to be of general application, however, the Cable Operator shall be relieved of any obligations hereunder it is unable to perform due to a region-wide natural emergency or in the event of force majeure affecting a signiticant portion of the franchise area. The Cable Operator is free to exceed these Standards to the benetit of its Customers and such shall be considered performance for the purposes of these Standards. 11. DEFINITIONS When used in these Customer Service Standards (the "Standards"), the following words, phrases, and terms shall have the meanings given below. "Adontion" shall mean the process necessary to formally enact the Standards within the Franchising Authority's jurisdiction, or to approve the Model Franchise Agreement adopted by the TCI Renewal Group of the GMCC (the" MFA") incorporating the Standards, under applicable ordinances and laws. "Cable Onerator" shall mean any person granted a franchise to operate, or operating, a cable television, data transfer, or telecommunications system within any area of jurisdiction of the Franchising Authority, and, in the MFA, the Grantee, or such person's employees, agents, contractors, or subcontractors. "Q!y" shall me:m the City of Wheat Ridge, Colorado "Customer" shall mean any person who receives service of any sort from the Cable Operator. "Customer Service Renresentative" (or "~") shall mean any person employed by the Cable Operator to assist, or provide service to, customers, whether by answering public telephone lines, writing service or in.;t:IiL'tl(lll on.lers, answering customers' tjucstl(lns. receiving and pr0cessing payments. or pertimnlng other customer service-rdated tasks "FranchiSing AUlhmily" shall mean the City (County or Town) and/or the Greater Metro Cable / ( Consortium, and/or, in the MFA, the Grantor. "Greater Metro Cahle Consortium" or "GMCC" shall mean a Colorado agency formed by intergovernmental agreement between its Members, local governmental subdivisions of the State of Colorado The GMCC may be delegated the authority to enforce cable television franchises and cable system operations for its Member communities, and may administer any or all functions u nd er th ese Stand ards. "Town" shall mean the Town of , Colorado III. CUSTOMER SERVICE A. Courtesy All employees of the Cable Operator shall be courteous, knowledgeable and helpful and shall provide effective and satisfactory service in all contacts with customers. B. Accessibility 1. Within sixty (60) days of the effective date of the..~e Standards, the Cable Operator shall provide, at sites acceptahle to the Franchising Authority, customer service centerslbusiness offices ("service centers") such that no customer shall be located further than ten (10) miles away from a service center. Except as otherwise approved by the Franchising Authority, all service centers shall be open Monday through Friday from 8:00 a.m to 6:00 p.m., and from 9:00 am to 1:00 p.m Saturdays, and shall bo:: fully staffed with customer service representatives offering the following services to customers who come to the service center: bill payment, equipment exchange, processing of change of service requests, and response to customer inquiries and requests. The Franchising Authority may approve alternatives for service centers offering lesser services at any site to which the public has general access. The Cable Operator shall post a sign at each service center advising customers of its hours of operation and of the addresses and telephone numbers at which to contact the Franchising Authority and the Cable Operator if the service center is not open at the timt'..~ posted. The Cable Operator shall provide free exchanges of faulty converters at the customer's address. ., ~. The Cable Operator shall maintain local telephone access lines that shall be available 24 hours a day, seven days a week for service/repair requests and billing inquiries. 3. The Cable Operator shall have dispatchers and technicians on call 24 hours a day, 7 days a week, including legal holidays. 4. Tho:: Cahlo:: Operator shall retain sufticio::nt customo::r service ro::presentatives and telephone line capacity to ensun: that telephono:: calls to service/repair and billing inquiry lines are answereJ by a customer servico:: representativo:: within 30 seconds or less, and that any transfers are made within 30 seconds. The..~e standards shall be met no less than 90 percent of the time measured monthly. 5 111e total numher of calls receiving husy signals shall not exceed 3% of the total telephone calls. Thb stambrJ sh;Iilbe met 90 percent or more 01 tho:: timo:: measured monthly. 2 / ,. \ C. Responsiveness I. Guaranteed Seven-Day Residential Installation a. The Cable Operator shall complete all standard residential installations requested by customers within 7 business days after the order is placed, unless a later date for installation is requested. "Standard" residential installations are those located up to 125 feet from the existing distribution system. If the customer requests a nonstandard residential installation, or the Cable Operator determines that a nonstandard residential installation is required, the Cable Operator shall provide the customer in advance with a total installation cost estimate and an estimated date of completion. b. All underground cable drops from the curb to the home shall be buried at a depth of no less than twelve inches (12"), and within no more than one calendar week from the initial installation, or at a time mutually agreed upon between the Cable Operator and the customer. 2. Residential Installation and Service Annointments a. Customers requesting installation of cable service or service to an existing installation may choose any of the following blocks of time for the installation appointment. 8'00 a.m to 12:00 a.m.. 12'00 Noon to 4'00 pm; 400 P m to 8'00 pm., or a four-hour block of time mutu311y agreed upon by the customer 3nd the Cable Operator The Cable Operator may not cancel an appointment With a customer after 5:00 p m. on the day before the scheduled appointment, except for appointments scheduled within twelve (12) hours after the initial call b. The Cable Operator shall contact by telephone, mail, or in person, every customer within 2 weeks after installation to assure the customer's satisfaction with the work completed All responses shall be recorded, and retained by the Cable Operator, and made easily available to the Franchising Authority upon request. C. The Cable Operator shall be deemed to have responded to a request for service under the provisions of this section when a technician arrives within the agreed upon time, and, if the customer is absent when the t~hnician arrives, the technician leaves WrItten notification of arrival and return time, and a copy of that notification is kept by the Cable Operator. In such circumstances, the Cable Operator shall contact the customer within forty-eight (48) hours. 3. Re..;idential Service Interruntions a. In the event of system outages (loss of reception on all channels) resulting from Cable Operator equipment failure affecting 5 or more customers, the Cable Operator sh311 correct such failure within 2 hours after the 3nJ customer call is received. b. All other service interruptions resulting from Cable Operator equipment failure shall be corrected by the Cable Operator by the end of the next calendar day. c The Cablt: Operator shall keep an accurate and comprehensive tile of any and all complaints re~arding the cahle system ur its operation of the cahle system, in a manner consistent with the privacy rights of customers. and the Cahle Operator's actions ini 3 -- - response to those complaints. These tiles shall remain open to the Franchising Authority and the public during normal business hours. Grantee shall provide Grantor an executive summary monthly, which shall include information concerning customer complaints. A summary of service requests, identifying the number and nature of the requests and their disposition, shall also be completeJ by the Cable Operator for each month and submitted to the Franchising Authority by the tenth (10th) day of the succeeding month. A log of all service interruptions shall be maintained and provided to the Franchising Authority quarter! y. d. All service outages and interruptions for any cause beyond the control of the Cable Operator shall be corrected within 36 hours, after the conditions beyond its control have been corrected. 4. TV Recention a. The Cable Operator shall provide clear television reception that meets or exceeds technical standards established by the United States Federal Communications Commission (the "FCC). The Cable Operator shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Scheduled interruptions shall be preceded by notice and shall occur during periods of minimum use of the system, preferably between midnight and six a.m. (6:00 a.m.) b. If a customer experiences poor Video or audio reception attributable to the Cable Operator's equipment, the Cable Operator shall repair the problem no later than the day following the customer call. If an appointment is necessary, customer may choose the samc blocks of time uescribeJ in Section 1I1.2.a. At the customer's request, the Cable Operator shall repair the problem al a later time convenient to the customer. 5. Problem Resolution The Cable Operator's customer service representatives shall have the authority to provide credit for interrupted service or any of the other credits listed in Schedule A, to waive fees, to schedule service appointments and to change bill ing cycles, where appropriate. Any difficulties that cannot be resolved by the customer service representative shall be referred to the appropriate supervisor who shall contact the customer within 4 hours and resolve the problem within 48 hours or within such other time frame as is acceptable to the customer and the Cable Operator. 6. Billin!! Credits and Refunds a. Cable Operator shall convert to the Anniversary Billed System or similar system of billing as set forth in the attached Exhibit C no later than December 31, 1996. The Cable Operator shall submit reports to the Franchising Authority regarding its progress towards converting to said system at least quarterly. Should these re[lort..~ indicate that lhe conversion can practicahly take place prior to the above-mentioned dale, Cable Operator shall so convert. On the date when the Cable Operator converts to the Anniversary Billing System, the following conditions shall apply: The Cable Operator shall allow at least thirty (30) days from the beginning date of the applicable service periOl.llilr payment of a customer's service bill for that period. If a customer's service bill is not pJiu within that pcriou of tinu: the Cable Operator may apply an auminlstrative fee tll the customer's account If the customer's service bill is not paiu within furty-five ~.~5) dJys of the beginning date 01 th~ applil..:!ble $ervict: period, the Cahlt: Operator may 4 / r- -( perform a .soft" disconnect of the customer's service. If a customer's service bill is not paid within fifty-two (52) days of the beginning date of the applicable service period, the Cable Operator may disconnect the customer's service, provided it has provided two (2) weeks notice to the customer that such disconnection may result. b. The Cable Operator shall issue a credit or refund to a customer within 30 days after determining the customer's entitlement to a credit or refund. 7. Treatment of Prol1erty a. The Cable Operator shall keep tree trimming to a minimum; trees and shrubs or other landscaping that are damaged by the Cable Operator, any employee or agent during installation or construction shall be restored to their prior condition or replaced. Trees and shrubs shall not be removed without the prior permission of the owner or legal tenant of the property on which they are located. This provision shall be in addition to, and shall not supersede, any requirement in any franchise agreement. b. The Cable Operator shall, at its own cost and expense, and in a manner approved by the property owner and the Franchising Authority, restore any property to as good condition as before the work causing such disturbance was initiated. The Cable Operator shall repair. replace or compensate a property owner for any damage resulting from the Cable Operat0r's instalbtion, construction. service or repair activities c. Except in the case of an emergency involving public safety or service interruption to a large number of subscribers, the Cable Operator shall give reasonable notice to property owners or legal tenants prior to entering upon private premises, and the notice shall specify the work to be performed; provided that in the case of construction operations such notice shall be delivered or provided at least twenty-four (24) hours prior to entry. Nothing herein shall be construed as authorizing access or entry to private property, or any other property, where such right to access or entry is not otherwise provided by law. If damage is caused by any Cable Operator activity, the Cable Operator shall reimburse the property owner 100% of the cost of the damage or replace the damaged property. For the installation of pedestals or other major construction or installation projects, property owners shall also be notitied by mail at least one week in advance. In the case of an emergency, the Cable Operator shall attempt to contact the property owner or legal tenant in person, and shall leave a door hanger notice in the event personal contact is not made. d. The Cable Operator personnel shall clean all areas surrounding any work site and ensure that all c.1ble materials have been disposed of properly. D. Scnices fur Custumers with Disabilities I. For any cllstomer with a disability, the Cable Operator shall at no charge deliver and pick up converters at customers' homes. In the case of a malfunctioning converter, the technician shall provide another converter, hook it up and ensure that it is working properly, and shall return the defective Cllllverter to the Cable Opcratllr 2 The Callt.:. Ol'cl'at"l" shall pruvide TOO service with trained operators who can provide every type 5 / --- -- -, of assistance rendered by the Cable Operator's customer service representatives for any hearing- impaired customer at no charge. 3. The Cable Operator shall provide free use of a remote control unit to mobility-impaired (if disabled, in accordance with subsection 4, below) customers. 4. Any customer with a disability may request the special services described above by providing the Cable Operator with a letter from the customer's physician stating the need, or by making the request to the Cable Operator's installer or service technician, where the need for the special services can be visually confinned. E. Customer Information 1. Upon installation, and at any time the customer may request, the Cable Operator shall provide the following infonnation, in clear, concise written form: a. Products and services offered by the Cable Operator, including its channel lineup; b. The Cable Operator's complete range of service options and the prices for these services; c. These Standards, with the attached Schedule A, and any other applicable customer service standards; d Instruction on the use of cable tv service and on standard VCR hookups; e. The C3hle Oper3tor's billing, collection :lnd disconnection policies; f. Customer privacy requirements; g. All applicable complaint procedures, including complaint forms and the telephone numbers and mailing addresses of the Cable Operator, the FCC, and the Franchising AuthOrity to whom the complaints should be addressoo; h. Use and availability of AfB switches; I. Use and availability of parental controlllock out device; J. Special services for customers with disabilities; k. Days, times of operation, and locations of the service centers. 2. Copies of all notices provided to the customer shall be filed (by fax acceptable) concurrently with the Franchising Authority and the Consortium. 3. The Cable Operator shall provide customers with written notification of any change in rates, programming, or channel positions, at least 30 days before the effective date of change. 4. All officers, agents, and employees of the Cable Operator or its contractors or subcontractors who are in personal contact with cable customers shall wear on their outer clothing identification cards bearing their name and photograph as approved by the Franchising Authority. The Cable Operator shall account for all identification cards at all times. Every vehicle of the Cable Operator shall be clearly visually identified to the public as working for the Cable Operator. All CSRs sh;1I1 identify themselves orally to callers immediately followin<1 the "reetin" durinO' each bOob 0 telephone contact with the public. Every vehicle of a subcontractor or contractor shall be labeled with the name of the contractor and further identified as contracting or subcontracting for the Cable Operator. 5. Each CSR, kchnici:m or employee of the C:lble Operator in each contact with a customer shall state the: estllnatcd cost of the servk:e, repair, or installation ora II y prior to delIvery of the service 6 - or before any work is performed, and shall provide the customer with an oral statement of the total charges before terminating the telephone call or before leaving the location at which the work was performed. F. Customer Privacy 1. The Cable Operator shall not monitor cable television signals to determine the individual viewing patterns or practices of any customer without prior written consent from that customer, except as otherwise permitted by the applicable Franchise. 2. The Cable Operator shall not sell or otherwise make available customer lists or other personally identifiable customer information without prior written customer consent, except as otherwise permitted by the Franchise. The Cable Operator is permitted to disclose such information if such disclosure is necessary to render, or conduct, a legitimate business activity related to a cable service or other service provided by the Cable Operator to its customers. G. Safety The Cable Operator shall install and locate its facilities, cable system, and equipment in compliance with all federal, state. local. and company safety standards, and in such manner as shall not unduly interfere with or endanger rer<;<,ns or property Whenever the Cahle Operator receives notice th:J.t an unsafe condition exists with respect to its equipment, the Cable Operator shall investigate such condition immediately, and shall take such measures as are necessary to remove or eliminate any unsafe condition. H. Satisfaction Guaranteed The Cable Operator shall guarantee customer satisfaction for every customer who requests new installation of cable service or adds any additional programming service to the customer's cable subscription. Any such customer who requests disconnection of such service within 30 days from its date of activation shall receive a credit to his/her account in the amount of one month's subscription charge for the service that has been disconnected. IV. COMPLAINT PROCEDURE A. Complaint'i to the Cable Operator. 1. The Cable Operator shall establish written procedures for receiving, acting upon, and resolving customer complaints, and crediting customer accounts in accordance with Sch~t1le A: .Credits to Customers., which Schedule is incorporated herein by this reference, and as otherwise provided herein. without intervention by the Franchising Authllrity and shall publicize such procedures through printed documents at the Cable Operator's sole expense. 2. Said written procedures shall prescribe a simple manner in which any customer may submit a complaint by telephone or in writing to the Cable Operator that it has violated any rru\ Ision of th~e CustOIll.:f S<.:rvi<.:e StanJards. any terms or conditions of the custlllll.:r's contract with Ille Cahle Operator, or reasonable business practices. 7 - ~ -' 3. At the conclusion of the Cable Operator's investigation of a customer complaint, but in rio more than fifteen (15) calendar days after receiving the complaint, the Cable Operator shall notify the customer of the results of its investigation and its proposed action or credit. 4 The Cable Operator shall also notify the customer of the customer's right to file a complaint with the Franchising Authority in the event the customer is dissatisfied with the Cable Operator's decision, and shall thoroughly explain the necessary procedures for filing such complaint with the Franchising Authority. 5. The Cable Operator shall immediately report all customer complaints that it does not find valid to the Franchising Authority. 6. The Cable Operator's complaint procedures shall be filed with and approved by the Franchising Authority prior to implementation. B. Security Fund 1. Within thirty (30) days of the effective date of these Standards or the effective date of any franchise granted by the Franchising Authority, whichever occurs first, the Cable Opentor shall deposit with an escrow agent approved by the Franchising Authority $100,000 (one hundred thousand dollars), or, in the sole discretion of the Franchising Authority, such lesser amount as the Franchising Authority deems reasonable to protect subscribers within its jurisdiction. Such amount may, with the approval of the Franchising Authority, be posted jointly for more than one member of the GMCC, and may be administered, and drawn upon, jointly by the GMCC or drawn upon individually by each member. The escrowed funds shall constitute the "Security Fund" for ensuring compliance with these Standards for the benefit of the Franchising Authority. The escrowed funds shall be maintained by the Cable Operator at one hundred thousand dollars ($100,000), or such lesser amount accepted by the Franchising Authority, even if amounts are withdrawn pursuant to any provision of these Standards. 2. At any time during the term of this agreement, the Franchising Authority may require the Cable Operator to increase the amount of the Security Fund, if it finds that new risk factors exist which necessitate such an increase. 3. The Security Fund shall serve as security for the payment of any penalties, fees, charges or credits as provided for herein and for the performance by the Cable Operator of all its obligations under these Customer Service Standards. 4. The rights reserveO to the Franchising Authority with respect to the Security Fund are in addition to all other rights of the Franchising Authority, whether reserved by any applicable franchise agreement or authorized by law, and no action, proceeding or exercise of a right with respect to same shall in any way affect, or diminish, any other right the Franchising Authority may otherwise have. 8 / - C. Complaints to the Franchising Authority. 1. Any customer who is dissatisfied with any proposed decision of the Cable Operator or who has not received a decision within the ten (10) day period as required shall be entitled to have the complaint reviewed by the Franchising Authority. 2. The customer may initiate the review either by calling the Franchising Authority or by filing a written complaint together with the Cable Operator's written decision, if any, with the Franchising Authority. 3. The customer shall make such filing and notification within twenty (20) days of receipt of the Cable Operator's decision or, if no decision has been provided, within thirty (30) days after filing the original complaint with the Cable Operator. 4. If the Franchising Authority decides that further evidence is warranted, the Franchising Authority shall require the Cable Operator and the customer to submit, within ten (10) days of notice thereof, a written statement of the facts and arguments in support of their respective positions. . 5. The Cahle Operator and the customer shall produce any additional evidence, including any reports from lhe Cable Operator, which the Franchising AuthOrity may deem necessary to an understanding and determination of the complaint. 6. The Franchising Authority shall issue a determination within tifteen (15) days after examining the materials submitted, setting forth its basis for the determination. 7. The Franchising Authority may extend these time limits for reasonable cause and may intercede and attempt to negotiate an informal resolution. 8. If the Franchising Authority determines that the customer's complaint is valid and that the Cahle Operator did not provide the complaining customer with the proper ~.llution and/or credit, the Franchising Authority may reverse any decisiun of the Cable Operator in the matter and/or require the Cable Operator to grant a specific solution as determined by the Franchising Authority in its sole discretion, and/or any credit provided for in these Standards; or the Franchising Authority may provide the customer with the amount of the credit (as set forth in the attached Schedule A) by means of a withdrawal from the Security Fund. D. Verification of Cumpliance. The Cahle Operatur shall establish its compliance with any or all of the standards required through annual reports that demonstrate said compliance, or as requested hy the Franchising Authority. E. Overall Quality uf Service The Franchising Authority may evaluate the overall quality of customer service provided by the 9 -.. Cable Operator to customers: a. In conjunction with any performance review provided for in the franchise agreement; and b. At any other time, at its sole discretion, based on the number of customer complaints received by the Cable Operator and the Franchising Authority, and the Cable Operator's response to those complaints. F. Non-Compliance with Customer Service Standards. Non-compliance with any provision of these Standards is a violation of these Standards. G. Procedure for Remedying Violations, - 1. If the Franchising Authority has reason to believe that the Cable Operator has failed to comply with any of these Standards, or has failed to perform in a timely manner, the Franchising Authority may demand in writing that the Cable Operator remedy the alleged noncompliance. If the alleged noncompliance is denied or not remedied to the satisfaction of the Franchising Authority, the Franchising Authority may opt to follow the following procedure. 2. An Informal meeting may be held to review the alleged noncompliance. If this meeting does not result in a resolution satisfactory to the Franchising Authority, the Cable Operator may request or the Franchising Authority may require an administrative hearing to determine if the noncompliance occurred. The Cable Operator shall be provided with ten (10) days written notice of the time and the place of the hearing, the allegations of noncompliance and the possible consequences of the noncompliance if substantiated. 3. After the administrative hearing, the Franchising Authority shall determine whether the noncompliance has been substantiated. If the noncompliance is substantiated, the Franchising Authority may order the Cable Operator to correct or remedy the noncompliance within thirty (30) days (except where the noncompliance constitutes a material safelY hazard) and in the manner and on the terms and conditions that the Franchising Authority establishes, or, in its sole discretion, the Franchising Authority may find a material violation of these Standards. 4. If the Franchising Authority determines in its sole discretion that the noncompliance has been substantiated, the Franchising Authority may: a. Impose assessments of one thousand dollars ($1,000 00) per day, to be withdrawn from the Security Fund in addition to any franchise fee until the non- compliance is remedied; and/or b. Order, after further hearing, such rebates and credits to affected customers as in its sole discretion it deems reasonable and appropriate for degraded or unsatisfactory services that constituted noncompliance with these Standards, amI/or 10 ,.- ,.... c In its sole discretion, declare a violation of the franchise agreement, and in such case, the noncompliance shall be a violation of the franchise agreement for the purposes of the franchise agreement, triggering all available obligations and remedies under the franchise agreement; and/or d Withhold licenses and permits for work by the Cable Operator or its subcontractors in accordance with applicable law; and/or e. Pursue any other legal or equitable remedy available under any applicable franchise agreement or law. f. Any assessment or remedy shall not constitute a waiver by the Franchising Authority of any other right or remedy it may have under any applicable franchise agreement or law including any right to recover from the Cable Operator any additional damages, losses, costs, and expenses, including actual attorney's fees that are incurred by the Franchising Authority by reason of, or arise out of noncompliance with these Standards. v. MISCELLANEOUS A. Severahility. Should any section, subsection, paragraph, term, or provision of these Standards be determined to be illegal, invalid, or unconstitutional by any court or agency of competent jurisdiction with regard thereto, such determination shall have no eftect on the validity of any other section, subsection, paragraph, term, or provision of these Standards, each of the latter of which shall remain in full force and effect. B. Non-Waiver. Failure to enforce any prOVISion of these Standards shall not operate as a waiver of the obligations or re~p(\nsihilities of the Cable Operator under said provision, or any other provision of these Standards. Revised 4/20/94 II ( F-71? --F'! P-004 J1..t.l 15 '94 14:5'3 SCHEDULE A - CREDITS TO CUSTOMERS STANDARDS OF CUSTOMER SBMCE A. COURTESY 1. All ~ployees of Cable OperatOr shall be friendly, knowledgeable and helpful In thelr serviC8ll. B, ACCESSIBlUTY 1. Cable Operator shall provide cuatOmer service centlllll at sites lICcep1ablo to the Fnlflohlalng Authority, wi no aubsoriber further than 10 mil.. from one. Hours: M-F 7:00 I,m. to 7:00 p.m,: Sat. 9:00 a.m. to 1:00 p.m. 2, Cable Operlrtor shall hive local telephone access nn.. available 24 hours I day, 7 days a waak. 3. Cable Operator will hsve displrtchers & teehnlclllM on call 24 hrs/day. 7 days/week. 4. Calls are being answered in 30 seoondll or '~i transfers made within 30 seconds. 90% monthly. 5. Cells receiving busy .ignllls shall not exceed 3'16 of the total telephone calla. C. RESPONSIVENESS 1. . Gu.-mteed 7-Day RMIdemW II1lItIdIdon a. Cable Operator shall complete installations requested by customers wtthin 7 busll19Ss days after the order has been placed. b. All underground cable drops wm be burled no less than 121n. and no more than one calendar week from the Inltlallnstallatlon, or mutual agreement. 2. RMlden1l11 lr\s1..atIon App.lb.lI...rQ a. Cable Operator customers wanting Inst81latlon of cable may choose any 4-hr time-block for imJtalllltion. b. Every Cable Opilrlrtor customer shall be contacted w/ln 2 wks llfter installation to assure customer satisfaction. c. Cable Operator will have recponded to a servioo request when taCtlnlclan arrlves w/ln the agreed upon time, notice left if customer is not home. Reschedule within 48 hours. MINIMUM COMPENSATION $!5.00 credit to their account. .6,00 credit to their account, $5.00 credit to their account, $5.00 credit to thalr account. $5.00 credit to their account, $6.00 credit to their account. Free Installation, or 1 month's basic service, if the fee has been waived for promotional rllllSOnS. $6,00 credit to their lICCount. $5.00 credit to their account, $5.00 credit to their account. STANDARDS OF CUSTOMER SERVICE 3, ReeldentIaI 8erYloe lhtem.lpllon. a, SystIIm outages resulting from Cable Operator equipment failure lIffecting 6 or more customers shall be corrected within 2 hours after the 3rd cul5tomer cell Is received. 4. 15. 6. 7, b. All other interruptions resulting from Cable Operator equipment fellure shall be corrected end of the next day, c, Cable Operator shall kOep II file, for all service Interruptions and requests for service that result In 8 service 01111. d. All service outages or Interruptions beyond the control of Cable Operator shall be corrected within 38 hra. TV ReceptIon DIfficulties a. Cable Operator will provide clear t.v. reception and shall make repairs promptly, and interrupt service only for good cause and for the shortest time possible. b. If 8 customer experiences poor video or audio reception due to Cable Operator's equipment. Cable Operator Will repair the problem no later than the next day. or at customer's convenience. Problem Resolution a. Cable Operator customer service reps. will be able to provide credit, waive f888, 8chedule appointments &. change bllllng cycles. Any difficulties th8t cannot be reeolved by the customlll' secvlce rep. will be referred to 8 supervisor who wiD contact the customer wlln 4hrs and offer II solution to the problem w/in 48hrs. BIding, CredIts lII1d Refunds 8. Convertlon to Anniversary Billed System. b. Cable Operator shell Issue a credit or refund wlln 30 days after determining the customer Is entitled to one, RespeGtfu! Trutment of Customer's Property II. Cable Operator shall replace trees or shrubs damaged from Installation. b. Cable Openrtor will restore Bny damaged property to the sarna oondition it W88 before damaged. c. Cable Operator will give notice to property owners before entering premises, specifying the work to be done. 2 F -71;" r"l P--0O3 -' ~ 15 '94 14:58 MINIMUM COMPENSATION One day's service for each 24-hour delay. One day'. service for each 24-hour delay. O~ day's service for 88ch 24-hour delay , One day's service for each 24-hour deley, One day's free service for sach 24- hour delay. One day's free service for each 24- hour delay. $6.00 credit to their account. $6.00 credit to their account. .6,00 credit to their account, $10.00 credit plus any additional repllirll. $10.00 credit plus any additional repairs. $10.00 credit plus any additional repairs. r- STANDARDS OF CUSTOMER SERVICE d. Cable Openrtor personnel shall clean up the area surrounding a work site and properly dispose cable meterlaJe, D. $ERVICES FOR CUSTOMERS WITH DISABlUTlES 1. Cable 0..... .t.n Ihall provllM the foIIowlng I8l'YiC8I for CUItOrllel'8 wtth cI8abIIItI.- CIt no CIdcDtlooel charg.: a. Cable Operstor will de/lvlIf and pick up conVCltlll'I at the home of customers with disabilities. In the case of a malfunctioning converter. the technician sholl replace It wI a new one, 2. Cable Operwtor wII provide the foIowIng I8l'YiC8I for the hM1ng-lmpelred lit no eckffdonaI charge: a. Cable OPIlfIl1:or wlIl provide TOO service wI trained operstora who can provide any assistance available. 3. Cable Operator shall p4"ovide free use of a remote control unit to mobility-impaired customers. 4, A customer wi II disability may request the above services by providing Cable Operator wi a letter from a physician stating their condition. or by meking the request to installer in person. E. CUSTOMER INfORMA nON 1. Upon Instsllatfon, or at a OUSlomers request. Cable Opllflltor wlIl provide the following Information: a. Products and servloes offered. b. Completll range of service options & prices. c. Customer service standards; d. InstrUction on use of cable TV service & on stendard VCR hookups; e. BIlling, collection and disconnect policies; f. Customer prtvecy reQUlremeMl; g. Complaint procedure. com-Inlng the City or the designated agenoy to whom the complalntll should be addressed: h. Use and lMIilebillty of AJB switch; I. Use and availability of parental control/lock out device; j. Special I18rvlC1lS for cu.tom~ with "bual, heering or mobllitY disabilities. Ie. Days, times of operation, and locations of the customer .ervlce centerS. 2. Copi~ of ell notices to Franchising Authority & GMCC. 3 F-712 .pq P--0O2 .JU-l 15 '94 14:58 -' MINIMUM COMPENSAT10N $10.00 credit plus any addltionel repairs. $6.00 credit to their account. $6.00 credit to their eccount. $5.00 credit to their BOOOUnt. $6,00 credit to their account. Provide customer wI the requested Info. and .6,00 credit to 8000unt. $5.00 credit to their account. EXHIBIT C LIST OF EQUIPMENT Video System Proposal Item # Manufacturer Model Number Description Qty 1 Panasonic AWE300 3 CCD Camera 2 2 Panasonic AWPH300 Pan Tilt Head 2 3 Panasonic AWPS300 Pan Tilt Head Power Supply 2 4 Panasonic AWLZ14MD55 Remote 14x Focus and Zoom Lens 2 5 Panasonic AWCA50T15 Lens Control Cable 2 6 Panasonic AWRP505 Pan Tilt and lens remote control 1 panel plus CCU for up to 5 cameras 7 Panasonic AWPS301 Power Supply 1 8 Panasonic AWHB505 Camera Hub 1 9 Panasonic AWPS505 Power Supply for Hub 1 10 Panasonic WV7015 Wall Mount 3 11 Panasonic WVCP460 Color Camera, 120VAC 1 12 Panasonic WVLZ62/8 Lens (No Auto Zoom) 1 13 Custom Wall Plate Camera Connector Wall Plate 3 14 Panasonic WVBM503 Triple Black and White Monitors for 1 monitoring camera 1, 2, 3 15 JVC TMA9U Color Monitor for Program out and CG 2 16 FEC RKTMA9U Rack Mount for new monitor 1 17 Kramer VS602 6x2 composite video, stereo audio 1 switch w/external synch and looping outputs 18 Videotek VDA-16 Video DA 2 19 Videotek DAT-1 Rack Mount 2 20 Videotek ADA-16 Audio DA 2 21 Videonics TM3000 Titlemaker 1 22 Hotronics AP41 Frame Synchronizer for CG 1 23 VAC BBG-2 Black Burst Generator wi 9 outputs 1 24 Winsted 86020 Rack 2 25 Winsted 85060 Rack Base 2 26 Winsted 81622 Laminated writing surface (2 bay) 1 27 Winsted 82224 shelf support brackets (pr) 1 28 Winsted 85124 side panels, pair 1 29 Winsled 84045 Top 1 30 Winsted 86071 shelf 2 31 Winsted 98710 power strip 1 32 Tech PVC4 Tech Electronics 4 input automated 1 Electronics playback switch 33 Panasonic AG1980 SVHS VTR for program play and council record Dale: 3/2/01 34 Winsted shelf Rack Shelf for VTR 35 Tech CCPANA-IR Cable for AG1980 Electronics 36 VDS Video Data Systems bulletin board client suppiied messaging system (City owns) 37 ?? Computer Monitor! Video Monitor for client supplied composing text (City owns) 38 Winsted shelf Rack Shelf for VDS 2 39 Videolek VDA-16 Video DA to split CG signal to 2 switcher input 1, default input, video monitor AND Program out to monitor and modulator 40 Videolek DAT-1 Rack Mount 2 41 Videotek ADA-16 Audio DA 2 42 JVC TMA9U Color Monitor for Program out, VDS an 3 43 FEC RKTMA9U Rack Mount for new monitor 2 44 Wohler AMP1ASVC Audio Monitor 1 45 CEAVCO Installation Installation Labor 1 46 CEAVCO Engineer Engineering Labor 1 47 CEAVCO Documentation AutoCad Time and Materials 1 48 CEAVCO Install!MS ESI Cable, Connectors and Misc. supplies 1 Terms: Net 30 with approved credit Shipping: UPS Ground Timeframe 4-6 weeks after receipt of order Thank you for considering CEAVCO Audio Visual Company Tracey Howell Account Manager THIS PROPOSAL HAS BEEN DESIGNED BY CEAVCO AUDIO VISUAL COMPANY AND IS NOT TO BE DUPLICATED FOR DISTRIBUTION OR BIDDING PURPOSES. IF THIS MATERIAL IS DUPLICATED FOR BIDDING A CONSULTING FEE WILL BE BILLED AGAINST YOUR ACCOUNT