HomeMy WebLinkAboutCC Ord 1111 1982-02-08
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ORDINANCE NUMBER III I
AN OROINANCE OF THE CITY OF SEAL BEACH
GRANTING TELEPROMPTER OF SOUTHERN
CALIFORNIA, INC. A FRANCHISE TO CONSTRUCT.
OPERATE, ANO MAINTAIN A CABLE COMMUNICATIONS
SYSTEM WITHIN THE CITY.
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Pursuant to Article XI of the Charter of the City of
Seal Beach and Chapter 23A of the Code of the City of
Seal Beach, California, Teleprompter of Southern
Cal iforni a, Inc. ("Teleprompter") is hereby granted
a non-exclusive. revocable franchise on the terms and
conditions hereinafter set forth to construct.
'operate, maintain, and reconstruct a cable communica-
tions system within the City of Seal Beach for a term
of fifteen years commencing on March 8, 1982,
provided that Teleprompter duly execute the Franchise
Agreement. attached hereto as Exhibit A. by such date.
Said franchise is granted to Teleprompter subject to
each and every provision of the Franchise Agreement,
attached hereto as Exhibit A and incorporated herein
by reference, Chapter 23A of the Code of the City of
Seal Beach, California, and all other applicable laws.
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P.ASSED. PPROVEO ANO ADOPTEO by the City Council of the~t~ of Seal
Beach C l'fornia, at a meeting thereof held on the ~ day
of. , 1982.
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Mayor
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ATTEST:
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SEAL BEACH )
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I. Joanne Yeo, City Clerk and ex-officio clerk of the City Council
of the ty of Seal Beach, do hereby certify that the foregoing ordinance
int odu d at a meeting~ the City Council of the City of Seal Beach
o 07?) , 1982, and adopted at a meeting held on
. 1982. by the following vote:
AYES:
NOES:
ABSENT:
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,0r~inCJnce flumber /11/
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FRANCHISE AGREEMENT
This Agreem~nt, Is made this
B~ <'Jay of
, 1982, by and between the City of Seal
Beach, a Nuni
Corporation, hereinafter referred to
as "the City" or "Grantor" and Teleprompter of Southern
California, Inc., hereinafter referred to as "Teleprompter"
or "Grantee".
Whereas, the City, pursuant to Article XI of the
Ch3rter of the City of Seal Beach and Chapter 23A of the
Code of the City of Seal Beach, California is authorized to
grant one or more non-exclusive franchises to operate,
construct, maintain and reconstruct a cable communication
system within the CitYi and
Whereas, the City has solicited applications for a
cable communication franchise on a competitive basis, and
after evaluating the applications received and holding a ~
public hearing, the City has determined that it is in the
best interests of the City to grant such a franchise 'to
Teleprompter.
NOW, THEREFORE the parties do hereby agree as
follows:
SECTION 1. DEFINITIONS
All words, terms, and phrases and the derivations
thereof shall have the meanings set forth in Section 23A-2
of the Code of the City of Seal Beach, California ("the Code").
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Ordinance Number 1/11
SECTION 2. GRANT OF FRANCHISE
A. The City hereby grants to Teleprompter a
non-exclusive, revocable franchise ("the franchise") to
construct, operate, maintain, and reconstruct a cable
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communications system ("the system") within the present and
future limits of the City subject to the provisions of
Chapter 23A of the Code, as may fie amended, and the provisions
set forth in this Agreement.
B. Grantee acknowledges and accepts the right of
Grantor to grant a franchise and Grantee agrees it shall not
now or at any time hereafter challenge this right in any
way, including but not limited to any state or federal court
action.
C. Concurrently with the execution of this
Agreement, Grantee shall file with the City Clerk a not-
arized, executed acceptance of all the terms and conditions
of the franchise.
D. The term of the franchise shall be for a
period of fifteen (15) years commencing on March 8, 1982,
after which period of time it shall expire and be of no
force and effect. Notwithstanding the foregoing, Grantee
may apply for the renewal of the franchise in accordance
with the provisions of Chapter 23A of the Code and subsection
E of this section of this Agreement.
E. During the thirteenth (13) year, but no later
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Ordi nance Number 111/
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than the first day of the fourteenth (14) year of t~e term
of the franchise, or any a~bsequp.ntly renewed franchise,
Grantee may ~ake application for a new fifteen (IS) year
franchise to begin at the expiration of the franchise, or of
any subsequently renewed franchise. Such application shall
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not be construed as an option in favor of Grantee. Should'
Grantor, for any reason, be unable to complete the renewal
proceeding prior to the expiration of the franchise. Grantee
shall have the right to continue operation of the system
pursuant to the terms of the franchise until such time as
the renewal proceeding is concluded. Nothing contained in
this Agreement shall be construed as requiring or obligating
Grantor to renew or extend the franchise.
SECTION 3. GENERAL REQUIREMENTS
A. Grantee hereby agrees to comply with each
and every provision of this Agreement and Chapter 23A of the
Code as may be amended. The provisions of said Chapter 23A
are attached hereto as Exhibit A and are incorporated herein
by this reference. In the event of any conflict between the
provisions of this Agreement and the provisions of Chapter
23A of the Code, the provisions imposing the stricter
requirements or the higher standards shall control. Grantor
shall give Grantee written notice of any amendments to
Chapter 23A prior to adoption by the City council.
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Ordinance Number 1111
~. p~ay!!!.~nt-!?!__Franchise Fees. Grar.tee shall
pay to Grantor the sum of $750,000.00 by no later than March 8,
1982 as a prepayment of the franchi~e fees required to be
paid by Grantee pursuant to Section 23A-10(1) of the Code
during th~ term of the franchise. Said $750,000.00, or any
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portion thereof, shall not be recoverable by Grantee from
Grantor in the event that the total franchise fees actually
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due and payable to Grantor during the entire term of the
franchise is less than such sum of money. Grantee shall not
be entitled to any interest or other income that Grantor
earns or derives from said prepayment and such income shall
not be applied towards the payment of any franchise fees
that Grantee may owe to Grantor. Grantee shall commence
making quarterly franchise fee payments to Grantor as
provided by Section 23A-10(1) of the Code when the total
franchise fees due to Grantor pursuant to said section
during the term of the franchise equal the sum of $750,000.00.
C. Grantee shall support and assist Grantor's
request to the Federal Communications Commission C-FCCn) for
the approval of a five percent (51) of'gross annual income
franchise fee.
D. Grantee shall file with Grantor the reports
required by Section 23A-6(3) of the Code at the times stated
therein. Grantee shall provide Grantor with such other
information as requested by Grantor in the form specified by
Grantor with respect to Grantee's operations within the
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Ordinance -Number 1'/1/
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City. Grantee shall also provide a copy of all cbrrespondence
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between Grantp.e and the FCC or any other public agency having
jurisdiction over the system to Grantor.
D. Faithful Performance Bond. Grantee shall file a
faithful performance bond with the City Clerk by March 8, 1982.in
the amount of $250,000 in a Company and in a form approved by the
City Attorney. Such bond shall secure the construction of the
system by Grantee as required by this Agreement and Chapter 23A of
the Code. Grantee shall maintain such bond on file with the City
Clerk until Grantor provides written notice to Grantee that such '
bond is no longer required. Said notice shall not be unreasonably
withheld or delayed after the completion of the construction of the
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system. Thereafter, Grantee shall file additional faithful perfor-
mance bonds with the City Clerk in an amount and form approved by
the City Attorney whenever the system is materially expanded or
modified.
E.
Security Fund.
(1) within thirty (30) days after the commencement
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of the term of the franchise, Grantee shall deposit an irrevocable
letter of credit with a bank of Grantor's choice in the sum of
$75,000.00 as security for the faithful performance by it of all
the provisions of the franchise, compliance with orders, permits,
and directions of Grantor or any other public agency having juris-
diction over the system, and payment by the Gran~ee of any fees,
charges, lawful claims, liens, or taxes due Grantor which arise
by reason of the construction, operation or maintenance of the
system. Such letter of credit shall be approved by the City
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Ordinance Number .1111
Attorney, and shall be maintained in effect for the full term of
the franchise. Grantor may require the letter of credit to be
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transferred to any other bank during the term of the franchise.
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(2) If Grantee fails after ten (10) days'
written notice to pay tO,Grantor any franchise fees or, charge~,
lawful claims, liens or taxes due and unpaid, or. fails to repay
to Grantor within such ten (10) pays. any damages. costs or
expenses which Grantor shall be obligated to pay by reason of
any act or default of Grantee in connection with the franchise;
or fails after thirty (30) days' written notice of such failure
by Grantor to comply with any provision of the franchise which
Grantor reasonably determines can be remedied by an expenditure
of the security, the Grantor may immediately withdraw such sums
of money from the Security Fund. with interest and any penalties.
as it deems necessary. Upon such withdrawal. Grantor shall
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notify Grantee of the amount withdrawn and the date of such
withdrawal. Within thirty (30) days after notice to Grantee
that any amount has been withdrawn by Grantor from the ~ecurity
Fund. Grantee shall deposit a sum of money sufficient to restore
such Security Fund to the sum of $75.000.00.
(3) The monies deposited in the Security
Fund pursuant to this section shall become the property of
Grantor in the event that the franchise is revoked and
terminated by Grantor as provided in Section 10 of this
Agreement and Section 23A-13 of the Code. Grantee. however.
shall be entitled to the return of such Security Fund. or
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Ordinance, tlumber // / /
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portion thereof, as remains on deposit at the expiration of the
term of the frat.chise, IJr UpO'1 the mutually agreed upon termina-
tion of the franchise at an earlier date, provided that
there is then no outstanding default on the part of Grantee.
(4) Rights Reserved. The righ~s of Grantor
with respect to the Security Fund are in addition to
all other rights of Grantor whether provided by this
Agreement or authorized by law, and no action, proceeding
or exercise of a right with respect to such Security Fund
shall affect any other right that may be held by Grantor.
(5) Remedies for Franchise Violations.
(a) In addition to the remedies specified
by Section 4(C) of this Agreement for delays in construction,
Grantee agrees that Grantor shall have the right to impose any
or all the following penalties or conditions in the event
Grantee violates any of the provisions of the franchise and
has not commenced corrective action within thirty (30) days
after written notice of such violation by certified mail to
the general manager of Grantee and the president of its
parent corporation.
1. Require Grantee to pay to
Grantor a penalty in such amount, whether per day, incident
or other measure of violation as Grantor may deem'reasonableJ
provided, that the basis for determining the penalty shall
ensure that Grantee shall not benefit financially by deciding
to pay the penalty rather than meet the franchise requirements
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Ordinance Number 111/
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specified in this Agreement or Chapter 23A of the Code.
2. Requi~ Grantee to make payments
to its customers or classes of customers in such amount and
on such basis as is described in Section 6(E)(2) of this
Agreement.
3. Require Grantee to correct or
otherwise remedy the violation prior to any requested rate
increase approved by Grantor becoming effective.
(b) In the event the stated, violation
is not reasonably curable within sixty (60) days, the
franchise shall not be terminated or revoked or a penalty
imposed if Grantee provides within said sixty (60) days,
a plan satisfactory to and approved by Grantor to remedy the
violation and demonstrates good faith in correcting said
violation.
(c) In determining which remedy or
remedies are appropriate for Grantee's violations of the
franchise, Grantor shall take into consideration the nature
of the violation, the number of persons affected by the
violation, the nature of the remedy required in order to
prevent further such violations, and such other matters as
Grantor may deem appropriate. Adequate penalties, however,
must be imposed if service is in any way materially and
adversely affected, or if the violation of any provision of
this franchise is not promptly corrected.
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Ordinance Number 111/
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(d) within ten (10) days after receipt
of a written notice of a violation from Grantor, Grantee may
requ~st a hearing before the City Council and any appeal
from the determination of the City Council shall be taken
within thirty (30) days to the Municipal or Superior Court'
of the County of Orange. The pendency of a request, hearing
or appeal shall suspend the imposition of any penalty or
sanction until ten (10) days after written notice of the
decision of the City Council confirming such penalty or
sanction in whole or in part is sent by certified mail to
the Grantee.
(e) Grantor and Grantee acknowledge
that damages at law are an inadequate remedy for violations
of the franchise and agree that either party may obtain
injunctive relief to enforce the provisions of the
franchise.
SECTION 4. CONSTRUCTION REQUIREMENTS
A. System Construction. Grantee shall construct
the system in accordance with Section 23A-4 of the Code and
the provisions of its Application for Cable Televison
Franchise ("the Application"), dated July 2, 1981, attached
hereto as Exhibit B and incorporated herein by this reference.
B. Construction Schedule. Grantee shall follow
the construction schedule set forth in the Application,
attached hereto as Exhibit B and incorporated herein by this
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Ordinance Number /111
reference, and shall comply with the provisions of Section
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23A-4(5) of the Code.
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C. Liquidated Damages for Delay in Construction.
Grantor may in its sole discretion impose any or all of the
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penalties provided by Section 23A-4(6) of the Code for
delays in system construction. In addition, Grantee shall
pay Grantor as liquidated damages the sum of $500 per day
for each day service is not available within fifteen (15)
days after request to all City residents after March 8, 1983.
D. Right of Inspection of Construction. Grantor
shall have the right to inspect all construction or installation
work performed subject to the provisions of the franchise and to
make such tests as it shall find necessary to ensure compliance
with the terms and conditions of the franchise and other
applicable provisions of law. Grantee shall reimburse Grantor
for all costs incurred by Grantor for such inspections or
II tests. Grantee shall not be held responsible for any delay
caused by inspection or testing of the system by Grantor.
E. Service Area. Grantee shall provide service
at the standard charges set forth in the Application,
attached hereto as Exhibit B and incorporated herein by
this reference, to all potential subscribers within the
City. In addition, subject to the approval of the City of
Los Alamitos and the affected school district, Grantee shall
provide service to any schools located within the City of
Los Alamitos that serve Seal Beach residents.
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-Ordi nance Number 1'111
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F. Subscriber Notification. Before pro~iding
cable communications service to any subscriber, Grantee
shall provide a written notice to the subscriber substan-
tially as follows:
"Subscriber is hereby notified that in providing
~cable television service Teleprompter is making
use of public rights-of-way within the City of
Seal Beach and that the continued use of such
rights-of-way is in no way guaranteed. In the
event the continued use of such rights-of-way is
denied to Teleprompter for any reason, Teleprompter
will,make every reasonable effort to provide
service over alternate routes. By accepting cable
television service, subscriber agrees he will make
no claim nor undertake any action against the City
of Seal Beach, its officers, or its employees if
the service to be provided hereunder is interrupted
or discontinued."
Grantee shall also provide detailed notification
to each subscriber of all relevant procedures used in
providing service to a subscriber. The content of such
notification and the procedure for dissemination shall be
approved by the City Manager prior to construction.
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Ordi nance Number I111
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G. The Grantee shall pay all fees related
to the construction of cable communications facilittes,
including, but not limited to, City excavation permit fees,
construction inspection fees and other City costs related to
cable communications construction, maintenance, and operation
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(including complaint response).
SECTION 5. SYSTEM DESIGN AND PERFORMANCE REQUIREMENTS
A. System Design and .Capacity. Grantee shall
provide the system design and capacity in the manner described
in the Application, attached hereto as Exhibit B and incorporated
herein by this reference. Maximum initially interactive
two-way capability shall be designed into the system.
B. Performance Standards. Grantee shall meet and
satisfy all technical and performance standards for the system
provided in the Application, attached hereto as Exhibit B
and incorporated herein by this reference, or required by law.
C. System Timeliness. Grantee shall make every
reasonable effort to keep the system in an up-to-date manner
utilizing all available technological advances and equipment.
Grantor may retain an independent consultant, at any
time considered appropriate, to advise Grantor regarding the
timeliness of the system. Grantee shall pay Grantor one-half
(~) of the costs of such consultant within thirty (30) days
after Grantor sends a written statement therefor to Grantee.
D. Low Profile Pedestals. Grantee agrees to use
low profile pedestals in its installation process.
Ordinance-Humber 1'1'1'1'
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E. Performance Testing.'
(1) On the last regular working day of each of the
first three (3) operating quarters of each year of the franchise,
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Grantee shall submit to the City Manager system performance data
taken within the previous seven (7) days. Measurements for said
data shall be taken at ten (10) or more test points at extreme
ends of the system. Quarterly test data shall be limited to:
(a) Visual signal level for all channels
carried.
(b) Visual signal-to-noise measurements
on one active low-band and one active high-band VHF channel.
(c) Visuai hum modulation on one channel
or pilot carrier.
Quarterly tests shall be performed on a
scheduled basis. A representative of Grantor shall be permitted to
accompany Grantee during such quarterly tests. Grantee shall not
be permitted to make any system adjustments during quarterly tesl,
without noting and explaining such adjustments on test data fo~s.
(2) Grantee shall, during the last month of the
fourth operating quarter of each year of the franchise, perform
annual system performance tests. Test results shall be submitted
to the City Manager and shall comply with the following conditions:
(a) Such test shall be in compliance with
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FCC regulations.
(b) Such test shall be independently
witnessed and the resultant data analyzed by a representa-
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Ordinance Number )'/11
tive of Grantor if so directed by the City Manager. .
(c) All neces~ary test instrumentation
shall be supplied by Grantee. A current certificate of
calibration by an independent calibration laboratory shall
be supplied for each test instrument. All costs for instru-
mentation and calibration shall be borne by Grantee.
(d) Measure~ent locations for system
compliance at subscriber terminals except those requirements
regarding twenty-four (24) hour visual signal amplitude and
channel amplitude characteristics, shall include:
(I) End of each system major
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trunk, and
(II) End of each system trunk
branch four (4) or more trunk amplifiers deep.
Actual test locations shall be selected
to measure performance of the system in the franchise
area and shall be (or as closely as possible simulate)
actual subscriber locations.
(el Measurements regarding twenty-four (24)
hour visual signal level and channel amplitude characteristic
shall be made as required by the FCC.
(f) Measurements for system compliance
of nonbroadcast signals shall be made where practical on
all origination equipment employed in the system.
Qrdinance Number
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(g) Measurement techniques shall be, in
the sole discretion of Grantor, either (1) those suggested
by the FCC or (ii) those mutually developed by Grantee and
Grantor and agreed to in writing prior to system testing.
If such agreement cannot be reached, Grantor shall prescribe
generally accepted methods of measurement.
(h) Concurrent with annual performance
tests, Grantor or its representative shall inspect all
system headend facilities and outside plant for ,adherence to
best industry installation, workmanship, and safety practice.
Grantee shall maintain the system so
that it consistently operates in substantial compliance with
the technical standards provided herein. Substantial
compliance is hereby defined as ninety-five percent (95%) of
the channels received shall meet all applicable technical
and performance standards simultaneously at the time of
measurement.
F. Independent Engineering Firm. Grantor may
require Grantee to pay all costs of an independent engineering
firm to witness the initial proof of performance testing of
any segment of the system as'a verification of Grantee's
compliance with the terms and conditions of the franchise
prior to activation. If said proof of performance tests
show that the system is operating significantly below the
technical and performance standards provided in the Application,
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Ordi nance Numbe r /1/ I
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attached hereto as Exhibit B and incorporated herein by this
reference, or required by law, Grantor may either order
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Grantee to ~educe rates or revoke and terminate the franchise
as provided by Section 23A-13 of the Code and Section 10 of
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this Agreement.
SECTION 6. SERVICE AND PROGRAMMING REQUIREMENTS
A. Initial Services and Programming. Grantee
shall provide initial services and programming as proposed
in the Application attached hereto as Exhibit B and incor-
porated herein by this reference. Substitutions may be made
subject to the approval of the City Council. Any programming
changes made to reduce program costs are subject to approval
by the City Council. Public or governmental access channels
shall not be affected in any manner whatsoever without the
approval of the City Council. Any programming designated in
the Application as basic service (nonpay TV service) shall
not at any time be designated as pay service.
B. Composite Channels. Grantee may combine
programming into composite channels to improve efficiency of
channel utilization or to attract a larger viewing audience,
subject to the restrictions and limitations of subsection A
of this section.
C. Institutional Network Service. This service
shall include the provision of appropriate terminal
equipment and the carriage of closed-circuit video, audio,
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Ordi nance Number /1'/ I
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or data signals on a point-to-point basis over the insti-
tutional network portion of the system, as provided for in
the Application, attached hereto as Exhibit B and incorporated
herein by this reference.
D. Changes in Programming. Grantee shall not
reduce the number of program services without written
approval of Grantor. Grantee may add programming without
the approval of Grantor.
E. Complaint Procedure and Remedies for Inadequate
Service.
(1) The following procedure shall be followed
in the event of subscriber complaints or complaints by City
residents:
(a) Grantee shall establish procedures
for receiving, acting upon, and resolving subscriber complaints
to the reasonable satisfaction of the City Manager. Grantee
shall furnish a notice of such procedures to each subscri~er
at the time of initial subscription to the system.
(b) Grantee shall maintain a written
record, or "log" listing the date and time of customer
complaints, identifying the subscriber location, and describing
in detail the nature of the complaints, and when and what
action was taken by Grantee in response thereto. 'Such
record shall be kept at Grantee's local office for a period
of at least three (3) years, and shall be available for
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inspection during regular business hours without further
notice or demand by Grantor.
(c) In the event that a customer
complaint is not resolved to the mutual satisfaction of the
customer or Grantee, either the customer or Grantee may
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request that the matter be presented to the City Manager for
an informal hearing and resolution.
(d) When there have been similar
complaints made or where there exists other evidence which,
in the reasonable judgment of the City Manager raises doubts
as to the reliability or quality of cable communications
service, the City Manager shall have the right and authority
to compel Grantee to test, analyze, and report on the
performance of that part of the system related to the
problem. Such test or tests shall be made and the reports
of such test or tests shall be delivered to the City Manager
no later than fourteen (14) days after Grantor notifies the
Grantee in writing that such test, analysis, and report" is
required. Such report shall include the following information:
the nature of the complaint which precipitated the special
test: what system component was tested: the equipment used
and procedures employed in said testing: the results of such
test: and the" method in which such complaints were resolved.
Any other information pertinent to the special test also
shall be recorded.
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Ordinance Number 1'1'/1'
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Grantor's right under this provision
shall be limited to requiring tests, analyses. and reports
covering specific subjects and characteristics based on said
complaints or other evidence when Grantor has reasonable
grounds to believe that the complaints or other evidence
require that tests be performed to protect the-public
against substandard cable communications service.
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(2) The following remedies for inadequate or
untimely service to subscribers or system installation
delays are hereby established:
(a) In the event that one-third or more
of its service to any subscriber is interrupted for twenty-four
(24) consecutive hours, or for a total of four nonconsecutive
hours within any thirty (30) day period, except for acts of
God or other circumstances beyond Grantee's control and
outside the system, and except in circumstances for which
prior approval of the interruption is obtained from the City
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Manager, Grantee shall provide a ten percent (10%) rebate of
the monthly fees to affected subscribers.
(b) In the event that one-third or more
of its service to any subscriber is interrupted for forty-eight
(48) or more consecutive hours, except for acts of God or
other circumstances beyond Grantees' control and outside the
system, and except in circumstances for which the prior approval
of the interruption is obtained from the City Manager. Grantee
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Ordinance Number 111/
shall provide a twenty percent (20%) rebate of the monthly
fees to affected subscribers.
(c) In the event that the system fails
to meet any material performance standards for a full three
(3) month period after being put on notice, for any reason
whatsoever, Grantee shall reduce all subscribers' fees by
twenty-five percent (25%) until all performance standards
are met. The City Manager shall notify Grantee during the
first month of the three-month period that the system has
failed to meet performance standards.
F. Effort to Interconnect
(I) Grantee shall make all reasonable efforts
to electrically interconnect the system with systems in
adjacent communities for the purpose of sharing locally
originated public and educational programming. Such
an interconnect shall be effected by coaxial cable. fiber
optic cable, microwave or other bi-directional signal
transportation means as appropriate to permit programming
interchange in compliance with the technical provisions of
Chapter 23A of the Code. Within two (2) years after the
commencement of the term of the franchise, Grantee shall
contact all cable communications franchise operators in
the County of Orange and communities immediately adjacent
to the City for the purposes of exploring and securing a
mutually acceptable system interconnect agreement. Grantee
shall report the results of such efforts to the City Manager
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Ordinance Number /11/
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or any other designated representative of Grantor. Said
report shall state each contaclsd operator's name, city and
response, list all programming activity available to City
residents by way of such interconnect agreement as well as
list programming to be transmitted similarly from the City to .
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the adjacent community. Said report also shall describe the
terms of any agreements entered into with such other operators.
(2) If an adjacent operator is not responsive
to the Grantee's inquiry, a report shall be filed with
Grantor stating that all reasonable attempts to gain an
interconnect agreement were made.
(3) In the case of new cable communication
systems constructed in adjacent communities after the City's
system is constructed, Grantee shall have a period of six (6)
months after the new system becomes operational to make the
required inquiries and attempt at an interconnect agreement.
G. Educational and Cultural Programminq. Grantee I
shall attempt to develop educational and cultural programming
with California State University at Long Beach.
SECTION 7. RATES AND CHARGES.
A. Initial Rates and Charqes. Grantee shall
provide service at the rates and charges set forth in
the Application, attached hereto as Exhibit B and incorporated
herein by this reference, and such rates and charges shall
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Ord1 Fiance Number 11/ I
remain in effect until the expiration of three (3) years
after the completion of the entire system within the City.
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B; Rate, Charges, and Rate Increases. The service
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rates and charges for system use established by subsection A
of this section may be changed only as provided herein.
(1) The rates established by subsection A of
this section may be adjusted upon the request of Grantee and
with the approval of Grantor only upon the expiration of
three years after the completion of the entire system within
the City. Such adjustment shall be based upon the Consumer
Price Index" (Urban Wage Earners) prepared by the Bureau of
Labor Statistics of the United States Department of Labor
relating to all items, Series A, for the Los Angeles/Long
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Beach/Anaheim area (1967/100) (nCPI.) in accordance with the
following formula:
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(a) For the initial rate increase request,
Grantee shall submit to Grantor a report of the most recent
CPI information for the period preceding the report.
(b) For any subsequent rate increase
requests, Grantee shall submit to Grantor a report of the
most recent CPI information for the period since the effective
date of the last previous rate increase. Such report also
may include CPI information for any other relevant period of
time.
I
Ordinance Number 1'1')')'
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(c) The number of points of incr~ase
in the CPI for saic periods, divided by the index base of
one hundLed (100) shall be used as the total percentage
increase in the CPl.
(d) In the event of an increase in the
CPI for said period, Grantee may request that Grantor grant
a rat~ adjustment, provided that:
1. The amount of such rate ajustment
divided by the current subscriber rates shall not exceed
ninety percent (90%) of the total percentage increase in
the CPI as determined under subparagraph (c) above; and
2. Grantee provides Grantor with
written financial statements, certified as true and correct
by a certified public accountant, showing that the rate
adjustment is justified by increased expenses incurred
by Grantee in the operation of the system.
(e) Any application by Grantee for a _
rate increase shall be accompanied and supported by the
following information:
1. Copies of financial reports of
Grantee's operations within the city including income
statements, certified as true and correct by a certified
public accountant, for at least the preceding thr~e (3)
years. In addition, Grantor may require Grantee to submit
copies of financial reports for its entire business. both
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Ordinance Number 1//1
within and without the City, including income statements.
certified as true and correct by a certified public accountant.
2. An ite~ization of capital
assets, both tangible and intangible, the accounting basis
for depreciation and the depreciation schedule. If intangible-
assets such as goodwill are being amortized. the amortization
period shall be stated.
3. A detailed breakdown of operating.
marketing and general and administrative costs by category
for each of the three (3) preceding years.
4. The number of subscribers for
Basic CATV Service and Pay-TV Service for each of the three
(3) preceding years.
5. The number of cable plant-miles
and dwelling units passed by the cable plant for each of the
three (3) preceding years.
6. A statement as to any allocation
it
of funds to the parent corporation, overhead, or operating
costs, and the basis for such allocation.
(2) The City Council shall act upon a rate
increase request within one-hundred and twenty (120) days
after the date upon which all required supporting materials
,
and data have been submitted. Prior to taking action on
such request, at least one noticed public hearing shall be
held upon the rate increase request.
Ordinance Number 1'111
.
a. '.
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The Council shall approve. partially
approve, conditionally approve, or disapprove any increasea
in rates or charges for additional services on the basis of
the following considerations:
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(a) Performance of Grantee in
complying with the terms and conditions of the franchise.
(b) Whether Grantee has adequately
served the subscribers in the City and the community in
general.
(c) Rates for comparable cable
communications service or services in surrounding communitites.
(d) Revenues and profits from
services offered.
(e) Operating and construction
expenses of the system.
(f) Completeness of the information
submitted by Grantee in support of the request for a rate-
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increase.
(g) Other such evidence or testimony
as may be presented during the public hearing.
The decision by the City Council approving.
partially approving, conditionally approving, or disapproving
a rate increase shall be by resolution and shall contain
findings indicating the basis for the decision, and any
conditions attached thereto. Any increase in rates or
charges thereby approved shall become effective thirty (30)
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O.rdinance !lumber 1/ J /
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days after the date of adoption of the resolution.
(3) In the event a rate increase is granted
as requested, the Grantee shall not apply for any further
increases to ~e effective less than twenty-four (24) months
from the effective date of the prior increase. If the rate
'request is denied, or a lesser increase than requested is
approved, Grantee shall not apply for any further increases
for a period of six (6) months from the effective date of
the prior denial or increase.
(4) Grantee hereby waives any rights it may
have relating to rates and charges under the provisions of
Section 53066.1 of the Government Code during the term of
the franchise and any renewals or extensions thereof.
.
.,of
SECTION 8. LOCAL ORIGINATION PROGRAMMING.
A. Local Oriqination Production Equipment and
Facilities. Grantee shall provide the equipment and facilities
set forth in Exhibit C, attached hereto and incorporated
herein by this reference.
B. Access Support and Budget. Grantee shall
provide support services for local origination programming
as ca~led for in the Application, attached hereto as Exhibit
B and incorporated herein by this reference.
C. Grantee agrees to provide a $75,000 annual
grant to Grantor to be used for the support of local origina-
,
Ordinance Number /11/
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tion programming, community promotion activities, and other
services as deemed appropriate by Grantor.
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SECTION 9. SPECIAL PROVISIONS.
A. The equipment and facilities described in
Exhibit C, attached hereto, includes less equipment than
that.which was proposed by Grantee in the Application. It
is mutually agreed that such deleted equipment has a value
of $140,388.00 and that such amount shall be paid, in cash,
to Grantor upon the commencement of the term of the franchise.
Such payment in lieu of equipment to be provided hereunder
is not a franchise fee and does not constitute the payment
of any franchise fees required by this Agreement or Chapter
23A of the Code.
B. It is the understanding of both Grantee and
Grantor that Grantee has an existing contract with the
Golden Rain Foundation for the provision"of cable commun~ca-
tions services within the Leisure World community. It 1s
further understood that Grantee will make available and
provide to the residents of Leisure World all of the same
services as are to be provided all other residents of the
City. Due to the existing contract between Grantee and the
Golden Rain Foundation, only those services provided by
Grantor to Leisure World which exceed the basic thirty-two
(32) channel service shall be subject to the terms and
conditions of the franchise provided by this Agreement and
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Ordinance Number 1111
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Chapter 23A of the Code. Upon the expiration or ter~ination
of such contract, each and every provision of the franchise
.
shall apply to all cable communication services provided to
subscribers within Leisure World as long as such services
are provided to Leisure World from the system.
.
SECTION 10. TERMINATION.
In addition to any and all other rights and remedies
provided by this Agreement, the Code, or any other laws or
regulations, Grantor shall have the right to revoke and terminate
the franchise at any time, without any liability whatsoever
to Grantee, on anyone or more of the grounds provided by
Chapter 23A of the Code in the manner provided therein.
SECTION 11. SEVERABILITY
If any section, subsection, sentence, clause, or
phrase of this Agreement is for any reason held to be
invalid or unconstitutional by the decision of any court of
competent jurisdiction, such decision shall not affect the
validity of the remaining portions of this Agreement. The
Council hereby declares that it would have executed this
Agreement and each section, subsection, sentence, clause and
phrase hereof, irrespective of the fact that any of one
.
Ordi nance Number 11//
'" ,I. .~
or more of the sections, subsections, sentences, qluuses or
phrases hereof be declared invalid or unconstitutional.
IN WITNESS WHEREOP, the parties have exe~uted
this Agreement in duplicate, the day and year first written.
CITY OP SEAL BEACH,
a Municipal corporation
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F K J. LASZLO, w\YOR
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TELEPROMPTER OF SOUTHERN
CALIFORNIA, INC.
a California Corporation
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Ordinance ~!umber //11
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EXHIBIT C
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LOCAL ORIGINATION PRODUCTION EQUIPMENT AND FACILITIES
EQUIPMENT VALUE
1.
Master Control Center
2.
Color Studio
3.
Mobile Color Studio I
A. Mobile Color Studio
p. ENG Microwave
Mobile Color Studio II
4.
S.
6.
Portable Color Unit I
BETA Edit Facility
Portable Modulator and Monitor (City Hall)
7.
8.
Portable Modulator and Mo~itor
(Police Station)
9.
Portable Modulator and Monitor
(Fire Station 3)
10. McGaugh School
A. 5 Toshiba Television Sets
B. Modulator
C. Large Screen Televsion Set
II. Zoeter School
A. 2 Toshiba Television Sets
B. Modulator
C. Large Screen Television Set
12. Senior Citizens Center/Mary Wilson Library
A. Large Screen Television Set
B. Portable Modulator
13. Portable Modulator and Monitor
(Lifeguard Headquarters)
14. Leisure World
A. 5 Toshiba Television Sets
B. 6 Headsets
15. Rossmoor Library
A. Large Screen Television Set
B. Portable Modulator
TOTAL VALUE OF ALL EQUIPMENT
. -
$ 50,340.00
154,895.00
37,515.00
25,000.00
37.515.00
7,682.00
5",000.00
2,50.0.00
2,500.00
3,000.00
2,250.00
1,500.00
5,000.00
900.00
1,500.00
5,000.00
5,000.00
2,000.00
2,500.00
2,700.00
150.00
5,000.00
2.000.00
$ 361,447.00
Ordinance Number 1'111
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFCRNIA.
County of Orange
I am a citizen of the United States and a
resident of the County aforesaid; I am over
the age of eighteen years. and not a party to
or interested in the above-entitled matter, 1
am the principal clerk of the printer of the
..._....1...~........................ ............
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and published ..... ......... .
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In the City of ..~.... .
County of Orange. and which news.
paper has been adludged a newspaper
of general circulation by the Superlor
Court of the County of Orange. State of
California. under the dateof.,A, 19 J7.
Case Number Il.d'';~.; that the notice.
of which the annexed Is a printed copy (set
in type not 'smaller than nonpareli). has
been published in each regular and entire
issue of said newspaper and not in any
supplement thereof on the following dates.
~~:~~t:.......~..;r....................
ali in the year 191..t..
I certify (or declare,) under penalty of
perjury that the foregoing is true and
correct,
Dated at ..,.0~e.....~.....
California. this.. ~.day 0~19 .ifJ.
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Signature
FrH cDpie. of 'hi, blank farm may ...IKU..... ....m;
CALIFORNIA NEWSPAPER SERVICE
BUREAU. INC.
Legal Advertising Clearing House
120 West Second SP.. Los Angeles. Calif. 90012
Telephone: 1213\ 625-2541
Pie... 'eQu.,t GE N IIRAL Proof If P'ubllullon
when arclerlnll,bll'orm.
This space is for the County Clerk's FIling Stamp
Proof of Publication of.
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Ordinance Number 1'//1
PROOF OF PUBLICA liON
12015.5 C.C.P.)
STATE OF CALIFORNIA.
County of Orange
I am a cItIzen of the United States and a
resident of the County aforesa id; I am over
the age of eIghteen years. and not a party 10
or interested in the above-entItled matter. I
am the princIpal clerk of the printer of the
....................................................
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a newspaper of genera' cl latlon. printed
and published ...~.....,.........
In the City of ..~...~..._
County of Orange. and which news-
paper has been adjudged a newspaper
of general circulation by the Superior
Court of the County of Orange. State of
California, underthedateof.~..,. 191..7,
Case Number .1I.t:t./:J:J..; that the notice.
of which the annexed is a printed copy lset
in type not 'smaller than nonpareil). has
-. been publiShed In each regular and entire
Issue of said newspaper and not In any
supplement thereof on the follOWing dates.
to-wit: ..-f
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all In the year 19.Ji-:-
I certify lor declare,) under penalty of
perjury that the foregoing Is true and
correct.
Dated at .~LL..~..............
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California. thls../~.dayof~19 ..f~
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Signature
Frn copll. of 'bll blink 'orm m., blllcured 'ram:
CALIFORNIA NEWSPAPER SERVICE
BUREAU, INC.
Legal AdvertisIng Clearing House
120 Welt Second S~, Los Angeles. Calif. 90012
Telephone: (213) 625-2541
Pl.... ....u..t GENERAL PI'oolof PubllClfloft
when .rd.rtn. ttlll form.
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