HomeMy WebLinkAboutGROUP W. CABLE INC. (ADELPHIA) 1 -1982
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(Rev. 5/3/82)
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AN AGREEMENT BETWEEN THE CITY OF SANTA ANA AND
GROUP W CABLE, INC., TO USE THE STREETS AND PUBLIC
WAYS WITHIN THE CITY OF SANTA ANA FOR THE OPERATION
OF A CABLE TELEVISION SYSTEM FOR FIFTEEN YEARS
UNDER CERTAIN TERMS AND CONDITIONS AND FIXING AN
EFFECTIVE DATE
THIS AGREEMENT, made and entered this 21st day of
June, 1982, by and between the City of Santa
Ana, a municipal corporation of the State of California, and
Group W. Cable, Inc., a corporation organized under the laws
of the State of New York.
WIT N E SSE T H
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Recitals:
1. The City Council of the City of Santa Ana,
pursuant to Charter Sections 1300 et. seq, and Ordinance No.
NS-146l, is authorized to grant one or more non-exclusive
revocable franchises to operate, construct, maintain and
reconstruct a cable television system within the City.
2. The City of Santa Ana has solicited appli-
cations for a cable television franchise on a competitive
basis, and after due evaluation of the applications received,
and after public hearings, the City Council determined that
it is in the best interest of the City of Santa Ana and its
residents to grant a franchise to Group W Cable, Inc.
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3. By Ordinance No. NS-1628, incorporated herein
and made a part hereof by reference, the City Council of the
City of Santa Ana granted a non-exclusive franchise, subject
to the terms and conditions of said ordinance and this agree-
ment to operate a cable television system within the City of
Santa Ana.
WHEREFORE, for and in consideration of the mutual
and respective covenants and promises hereinafter made, and
subject to all the terms and conditions hereof, the parties
herein do agree as follows:
SECTION 1.
DEFINITIONS
For the purposes of this agreement, the following
words, terms, phrases, and their derivations shall have the
meanings given herein. When not inconsistent with the context,
words used in the present tense include the future tense,
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words in the plural number include the singular number, and
words in the singular number include the plural number. The
word "shall" is always mandatory and not merely directory.
1.1 "Additional Subscriber Service" means any service
not included in Basic Subscriber Television Service", or
"Basic Subscriber Radio Service" or "Institutional Service",
including, but not limited to, pay-cable.
1.2 "Agency Subscriber" means a subscriber who receives
a service in a government or public agency, school, or non-
profit corporation.
1.3 "Basic Subscriber Television Service" means the
total of all of the following:
(a) the retransmission to all subscribers of all
broadcast television channel signals authorized by the FCC
and provided for herein;
(b) the provision to all subscribers of non-
broadcast open-channel signals, originating from sources
outside the Cable Television System.
(c) the cablecasting to all subscribers of the
Local Origination Channel, and the Public, Educational and
Government Access channel signals.
(d) the transmission to all subscribers of all
other cablecast open-channel signals. Basic Subscriber
Television Service may be offered to subscribers in one or
more tiers, or combinations of programs.
1.4 "Basic Subscriber Radio Service" means the provision
to all subscrlbers of such audio services as the retransmission
of broadcast FM radio signals, the retransmission of shortwave,
weather, news, time and other similar audio brodcast channels,
and the transmission of cablecast FM radio signals, as permitted
by the FCC.
1.5 "Broadcast Signal" means a television or radio
signal that is transmitted over-the-air to a wide geographic
audience and is received by a Cable Television System, off-
the-air, by microwave link, by satellite receiver, or by
other means.
1.6 "Cable Television System", "Cable Communications
System" or "System", sometimes referred to as "Cable TV
Systems", "CATV System", or "Broadband Communicatlons Network",
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means a system of antennas, c~bl~., amplifiers, towers,
microwave links, cablecasting studios, and any other con-
ductors, converters, equipment or facilities, designed and
constructed for the primary purpose of distributing video
programming to home subscribers, and the secondary purpose
of producing, receiving, amplifying, storing, processing, or
distributing audio, video, digital, or other forms of electronic
or electrical signals.
1.7 "Cablecast Signal" means a non-broadcast signal
that originates withln the facilities of the Cable Television
System.
1.8 "Channel" means a six Megahertz(MHz) frequency
bank, which is capable of carrying either one standard video
signal, a number of audio, digital or other non-video signals,
or some combination of such signals.
1.9 "City" means the City of Santa Ana, a municipal
corporation of the State of California, and all the territory
within its present and future corporate boundaries.
1.10 "City Council" means the Council of the City of
Santa Ana, or such representative person or entity as may be
designated initially or at some future date to act on cable
television matters.
1.10.1 "Commercial Service" or "Commercial Programming
means that Grantee or Grantor lS receivlng a fee or derivlng
income from the service.
1.11 "Commercial Subscriber" means a subscriber who
receives a service in a place of business, where the service
may be utilized in connection with a business, trade or
profession.
1.12 "Community Cable Citizens Board" means a board
created in accordance wlth Section 900 of the Charter of the
City of Santa Ana.
1.13 "Converter" means an electronic device which con-
verts signal carriers from one form to another.
1.14 "Educational Channel", "Educational Access Channel"
means any channel where educational institutlons are the
only designated programmers.
1.15 "FCC" means the Federal Communications Commission,
or a designated representative.
1.16 "Franchise" means this signed and notarized agreement
on the part of both Grantor and Grantee accepting and agreeing
to all of the provisions of the franchise granted by ordinance
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and this agreement, including're~erenced specifications,
franchise applications, and other related material.
1.17 "Gran tee" means Group W Cable, Inc., to whom a
franchise is granted for the construction, operation, main-
tenance, and reconstruction of a Cable Television System,
and the lawful successors, transferees, or assignees of said
corporation or entity.
1.18 Grantor" means the City of Santa Ana represented
by the City Council acting within the scope of its juris-
diction.
1.19 "Government Channel" means any channel where local
government agencles are the only designated programmers.
1.20 "Gross Annual Revenues" means the annual gross
revenues recelved by the Grantee from all sources of oper-
ation of the Cable Television System, except that any sales,
excise or other taxes, or other payments collected for direct
pass-through to local, state or federal government shall not
be included, nor shall a feed originating outside the City
and passing through the City destined for a location outside
the City be included, nor shall revenues arising from distribution
of programming produced in Santa Ana studios to areas outside
the City be included.
1.21 "Institutional Service" means such video, audio,
data and other services provided to institutional users on
an individual application, private channel basis. These may
include, but not be limited to, two-way video, audio or
digital signals among institutions, or from institutions to
residential subscribers.
1.21.1 "Interactive Service" means the capability of
providing two-way transmlssions.
1.22 "Leased Channel" or "Leased Access Channel" means
any channel avallable for lease and programmlng by persons
or entities other than the Grantee, including those portions
of the other access channels not in use by their designated
programmers.
1.23 "Local Origination Channel" means any channel
where the Grantee lS the only programmer, and provides video
programs to subscribers.
1.24 "Monitoring" means observing a one-way communica-
tions signal, or the absence of a signal, where the observer
is neither the subscriber nor the programmer, whether the
signal is observed by visual or electronic means, for any
purpose whatsoever.
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1.25 "Non-Broadcast Signal" means a signal that is
transmitted by a Cable Television System and that is not
involved in an over-the-air broadcast transmission path.
l.26 "Open-Channel" means any channel that can be re-
ceived by all subscribers, without the necessity for special
equipment.
1.27 "Pay Cable" or "Pay-Television" means the delivery
to subscribers, over the Cable Television System, of television
signals for a fee or charge to subscribers over and above
the charge for Basic Subscriber Service, on a per program,
per channel, or other subscription basis.
1.28 "Person" means any corporation, partnership, pro-
prietorship, individual or organization authorized to do
business in the State of California, or any natural person.
1.29 "Private Channel", or "Closed-Circuit Channel"
means any channel which is available only to subscribers who
are provided with special converter or terminal equipment to
send or receive signals on that channel.
1.30 "Programmer" means any person or entity who or
which produces or otherwise provides program material or
information for transmission by video, audio, digital, or
other signals, either live or from recorded tapes or other
storage media, to subscribers, by means of the cable tele-
vision system.
l.31 "Public Channel", or "Community Channel" means any
channel assigned to Grantor.
1.32 "Resident" means any person residing in the City
as otherwise defined by applicable law.
1.33 "Residential Subscriber" means a subscriber who
receives a service in an individual dwelling unit, where the
service is not to be utilized in connection with a business,
trade, or profession.
1.34 "School" means any public educational institution
including primary and secondary schools, colleges and uni-
versities and all similarly situated private and parochial
educational institutions which have received the appropriate
accreditation from the State of California, and where re-
quired, from other authorized accrediting agencies.
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1.35 "Section" means any section, subsection, or pro-
vision of this agreement unless otherwise stated.
1.36 "Streets and Public Ways" means the surface of and
the space above and below any public street, sidewalk, alley,
or other public way of any type whatsoever, now or hereafter
existing as such within the City.
1.37 "Subscriber" means any person, firm, corporation,
or other entity who or which elects to subscribe to, for any
purpose, a service provided by the Grantee by means of or in
connection with the Cable Television System.
1.38 "Tapping" means observing a two-way communication
signal exchange, where the observer is neither of the com-
municating parties, whether the exchange is observed by
visual or electronic means, for any purpose whatsoever.
1.39 "Year" means the remaining portion of 1982.
after, "Year" means a full calendar year.
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SECTION 2.
GRANT OF FRANCHISE
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2.1 Grant. Group W Cable, Inc., a corporation with
its principal place of business at 888 Seventh Avenue, New
York, New York 10106, hereinafter called the Grantee, has
been granted for itself, its successors and assigns, subject
to the terms and conditions of this agreement, the non-
exclusive franchise, authority, right, and privilege, for a
fifteen (15) year period from and after the effective date
of the ordinance granting the franchise, to construct, op-
erate, and maintain a cable television system within the
streets and public ways within the City of Santa Ana.
2.2 Right of Grantor to Issue Franchise. Grantee
acknowledges and accepts the right of Grantor to issue a
franchise and Grantee agrees it shall not now or at any time
hereafter challenge such right in any way or in any City,
State or Federal court.
2.3 Effective Date of Franchise. The effective date
of the franchise granted shall be the date Ordinance No. NS~
1628 becomeseffective~subject to acceptance by Grantee in
accordance with Section 2.6 hereof.
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2.4 Duration. The term of the franchise shall be
fifteen (15) years from the effective date hereof at which
time it shall expire and be of no force and effect. Renewal
shall be in accordance with Section 12.4 hereof.
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2.5 Franchise Not Exclusive. The franchise granted by
Ordinance No. NS-1628 shall not be construed as any limitation
upon the right of Grantor, through its proper officers, to
grant to other persons or corporations, rights, privileges,
or authority similar to or different from the rights, privileges,
and authority herein set forth, in the same or other streets
and public ways or public places by franchise, permit, or
otherwise, provided, however, that such additional grants
shall not operate to materially modify, revoke or terminate
any rights granted to Grantee herein.
(a) In the event Grantee shall be awarded a final,
binding cable television franchise by any other municipality
within one (1) year after the effective date of this agreement
containing terms and conditions deemed by Grantor to be more
beneficial to it, Grantor may elect to negotiate with Grantee
to obtain such terms and conditions; provided, however, that
such negotiations shall take into account all relevant facts
and circumstances, including but not limited to, rates and
charges for services.
(b) In the event Grantor shall grant additional
franchises containing terms and conditions which Grantee
deems to be more beneficial to it, Grantee may, at its option,
elect to negotiate with Grantor to obtain such terms and
conditions.
2.6 Franchise Acceptance. Grantee shall, within' twenty-
five (25) days after the date Ordinance No. NS-1628 becomes
effective, file in the office of the Clerk of the City Council
an original copy of this agreement executed by Grantee in
form approved by the City Attorney, which shall constitute
acceptance of the franchise.
Failure of Grantee to accept the franchise as
provided herein shall cause the franchise to become null and
void.
SECTION 3.
GENERAL REQUIREMENTS.
3.1 Governing Requirements. Grantee shall comply with
the requirements of Charter Section 1304, Ordinance No. NS-
1461, Ordinance No. NS-1628, this agreement and all offerings
contained in Grantee's franchise application. In the event
of any conflict, the provisions of this agreement shall
first govern, followed by the provisions of Grantee's fran-
chise application, followed by the provisions of Ordinance
No. NS-1461.
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3.2 Franchise Fee. Following the issuance and acceptance
of the franchise, Grantee shall pay to Grantor a franchise
fee of five percent (5%) of annual gross revenues. Said
franchise fee shall be computed and paid on a quarterly
basis, and due no later than thirty (30) days following the
end of each calendar quarter.
3.3 Advance of Franchise Fees. At the time of acceptance
of this franchise pursuant to Section 2.6 of this agreement,
Grantee shall deposit with Grantor the sum of Five Hundred
Thousand Dollars ($500,000.00) as an advance payment of
franchise fees to be credited as hereinafter provided. At
the beginning of each year thereafter Grantee shall deposit
with Grantor the sum of Fifty Thousand Dollars ($50,000.00)
as an advance payment of franchise fees to be credited as
hereinafter provided. Said payment of franchise fees may be
used by Grantor for any lawful purpose and shall not be
recoverable from Grantor except as hereinafter credited.
3.4 Credit of Advance Franchise Fees. In any single
year wherein the franchise fee required by Section 3.2 of
this agreement exceeds the amount of Fifty Thousand Dollars
($50,000.00), a sum equal to the difference between Fifty
Thousand Dollars ($50,000.00) and the actual franchise fee
shall be credited to the initial advance of Five Hundred
Thousand Dollars ($500,000.00) advanced pursuant to Section
3.3 of this agreement. Any amount remaining from advance
payment of franchise fees at the end of the term hereof
shall be and remain the sole property of Grantor.
3.5 Security Fund. At the time of acceptance of this
agreement pursuant to Section 2.6 of this agreement, Grantee
shall deposit with Grantor the sum of One Hundred Thousand
Dollars ($100,000.00) as a security deposit for the performance
by Grantee of the provisions of this agreement. Ninety
percent (90%) of the security deposit may be in the form of
an irrevocable letter of credit on a form as approved by
Grantor's City Attorney. If Grantee is in default as here-
inafter specified in Section 4.3 or 10.4, Grantor may use
the security fund, or any portion thereof, to cure the de-
fault or to compensate Grantor as penalty for nonperformance.
Grantee shall immediately on demand pay to Grantor a sum
equal to the portion of the security deposit expended or
applied by Grantor as provided in this agreement so as to
maintain the security deposit in the sum of One Hundred
Thousand ($100,000.00). If Grantee is not in default at the
completion of construction as herein provided, the principal
amount of the required security deposit shall be reduced to
Fifty Thousand Dollars ($50,000.00), ninety percent (90%) of
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which may be in the form of an irrevocable letter of credit
on a form as approved by Grantor's City Attorney. If Grantee
is not in default at the expiration of the franchise, Grantor
shall return the security deposit to Grantee. Grantor's
obligations with respect to the security deposit are those
of a debtor and not a trustee. Grantor can maintain the
security deposit separate and apart from Grantor's general
funds or can commingle the security deposit with Grantor's
general and other funds. Grantor shall not be required to
pay Grantee interest on the security deposit.
3.6 Faithful Performance Bond. Upon the effective
date of the franchise, Grantee shall file with the Clerk of
the Council a faithful performance bond on a form satis-
factory to Grantor's attorney executed by a surety company
authorized to do business in the State of California, in the
penal sum of $50,000.00. The faithful performance bond
shall be maintained by the Grantee throughout the term of
the franchise, provided, however, the amount may be reduced
to 50% of the hereinabove required amount at the end of the
first three (3) years of the franchise if Grantee is not
otherwise in default of its performance hereunder.
3.7 Insurance. Grantee shall obtain at its sole cost
and file with Grantor's Clerk of the Council, prior to exer-
cising any right or performing any obligation pursuant to
the franchise, and maintain for the term of the franchise, a
policy of insurance or a certificate of such insurance,
satisfactory to Grantor's attorney, naming Grantor, its
officers, agents and employees as insured or additional
insured, which provides coverage not less than that provided
in the form of a comprehensive general liability insurance
policy for any and all claims and suits for damage or in-
juries to persons or property resulting from or arising out
of operations of Grantee, its officers, agents or employees.
Said policy or policies of insurance shall provide coverage
for both bodily injury and property damage in not less than
the following minimum amounts: Two Million Five Hundred
Thousand Dollars ($2,500,000.00) combined single limit, or
its equivalent. Grantee shall furnish to Grantor's Clerk of
the Council an insurance certificate that Grantee carries
Worker's Compensation insurance as required by law. Said
policy or policies of insurance required hereunder shall
contain a provision that no termination, cancellation or
change of coverage or of insured or additional insured shall
be effective until after thirty (30) days notice thereof has
been given in writing to Grantor. Grantee shall give to
Grantor prompt and timely notice of claim made or suit in-
stituted arising out of Grantee's operations hereunder.
Grantee shall procure and maintain, at its own cost and
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expense, any additional kinds and amounts of insurance which
may be required, or, in its own judgment, may be necessary
for its proper protection hereunder. Grantor shall retain
the right to review at any time the coverage, form, and
amount of insurance required hereby. If, in the reasonable
opinion of Grantor, the insurance provisions do not provide
adequate protection for Grantor and for members of the public,
Grantor may require Grantee to obtain insurance sufficient
in coverage, form, and amount to provide adequate protection
at Grantee's sole cost and expense.
3.8 Indemnity. Grantee shall indemnify and save harmless
Grantor, its offlcers, agents and employees, from and against
any and all damage to property or injury to or death of any
person or persons, including property and employees or agents
of Grantor, and shall defend, indemnify and save harmless
Grantor, its officers, employees and agents for any and all
claims, demands, suits, actions or proceedings of any kind
or nature, including, but not by way of limitation, worker's
compensation claims, resulting from or arising out of the
negligent acts, errors or omissions of Grantee, its employees
or subcontractors. Further, Grantee shall defend, indemnify
and save harmless Grantor, its officers, agents and employees
from and against any and all claims, demands, suits, actions
or proceedings resulting from or arising out of the intentional
or malicious acts of Granteee, its employees or subcontractors.
3.9
Recovery of Franchise and Consultant Costs.
(a) Grantee, within sixty (60) days after receipt
from Grantor of a written itemization, shall reimburse Grantor
for its reasonable costs incurred during the franchise process
to the extent not recovered by application fees.
(b) As necessary to aid in the analysis of all
matters relative to the franchise, Grantor, in cooperation
with Grantee, shall be entitled to employ the services of a
consultant. All reasonable fees of the consultant incurred
by Grantor for such services shall be equally borne by Grantee
and Grantor, regardless of the outcome of any specific matter
under consideration.
3.10 Payment to Grantor. No acceptance of any payment
by Grantor shall be construed as an accord and satisfaction
that the amount paid is in fact the correct amount, nor
shall such acceptance of payment be construed as a release
of any claim Grantor may have for further or additional sums
payable under the provisions of this agreement. All amounts
paid shall be subject to audit and recomputation by Grantor.
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3.11 Contractor's Payment Bond. Upon the effective
date of the franchise, Grantee shall file with the Clerk of
the Council a contractor's payment bond on a form satisfactory
to Grantor's attorney to secure the claims to which reference
is made in Title 15 (commencing with Section 3082) of Part 4
of Division 3 of the Civil Code of the State of California,
in the sum of one million dollars ($1,000,000.00), which
bond shall be released by Grantor upon completion of construction
as herein provided.
SECTION 4.
CONSTRUCTION AND SERVICE REQUIREMENTS
4.1 General. Grantee shall meet or exceed all the
material construction and service requirements set out in
this agreement and in addition shall meet or exceed those
material service requirements set out in Grantee's franchise
application, a copy of which is on file in the Office of
Grantor's Clerk of the Council and to which reference is
hereby made for full particulars. Grantee shall meet the
service requirements regardless of whether subscriber pene-
tration and/or revenue projections contained in the ap-
plication prove to be correct. It is Grantor's intent Grantee
shall not be penalized for minor breaches of the terms hereof
so long as Grantee's best efforts are maintained.
4.2 Construction Schedule. Grantee shall complete
construction and offer service within the time or times set
forth in the Schedule of Performance, attached hereto as
"Exhibit A" and incorporated herein by reference, or within
such reasonable extensions of such times as may be granted
by Grantor or as provided in Section 15 of this agreement.
Grantee shall make a good faith and diligent effort to obtain
all necessary utility agreements, permits and clearances.
4.3 Penalties for Delay in Construction. Grantor, at
its option, may apply anyone or more of the following pen-
alties if Grantee fails to perform construction and/or offer
service within the time or times set forth in "Exhibit A,"
the Schedule of Performance:
(a) For each month of delay exceeding three (3)
months, Grantor's City Manager may reduce the term of
the franchise one (1) month.
(b) For a delay exceeding one (1) year, Grantor's
City Manager may require forfeiture of the faithful per-
formance bond required hereunder,
(c) For a delay exceeding eighteen (18) months,
Grantor's City Manager may terminate the franchise
and this agreement.
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(d) For a failure to commence construction or a
failure to complete required levels of construction
within the time or times established in "Exhibit A,"
the Schedule of Performance, Grantor's City Manager
may impose a penalty and deduct from the Security
Fund an amount not to exceed Five Thousand Dollars
($5,000.00) per day for each day Grantee fails to
commence construction or fails to complete the re-
quired levels of construction as set forth in "Exhibit A."
ANY IMPOSITION OF MONETARY PENALTIES AS STATED IN THIS SECTION
MAY BE COLLECTED AND RETAINED BY GRANTOR AS LIQUIDATED DAMAGES
AND AS ITS PROPERTY WITHOUT ANY REDUCTION, OFFSET, OR RECOUPMENT
WHATSOEVER. GRANTOR AND GRANTEE AGREE THAT IT WOULD BE
IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX ACTUAL DAMAGES
IN CASE OF GRANTEE'S DEFAULT, AND THAT THE AMOUNT OF PENALTIES
IS A REASONABLE AND COMPLETE ESTIMATE OF GRANTOR'S DAMAGES.
GRANTEE RECOGNIZES THAT GRANTEE'S PROMPT DEVELOPMENT AND
OFFERING OF SERVICES IS OF CRITICAL IMPORTANCE TO GRANTOR.
THIS SECTION IS SEPARATELY APPROVED BY THE PARTIES TO THIS
AGREEMENT IN ACCORDANCE WITH CALIFORNIA CIVIL CODE SECTION
1677 .
GRANTOR:
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GORDÔN BR~N, ~~YOR
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Grantee may appeal the imposition of any penalty to
the City Council in accordance with the provisions of Chapter
3 of the Santa Ana Municipal Code.
4.4 Right of Inspection of Construction. Grantor
shall have the rlght to inspect all construction or instal-
lation work performed pursuant to the provisions of this
agreement and to make such tests as it shall deem necessary
or desirable to ensure compliance with the terms of this
agreement and other pertinent provisions of law.
4.5 Construction Cost. Grantee has estimated in its
franchise applicatlon that the construction cost of the
cable television system that will serve the City and neighboring
jurisdictions during the first two (2) years will be as
follows:
Antennas, Towers and Earth Stations...........$
220,000
Microwave.....................................
144,000
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Headend.......................................
Distribution Plant............................
Drops, Converters and Customer Premises.......
Equipment
Leasehold Improvements........................
Cablecasting Equipment........................
Test Equipment, Tools and Spare Parts.........
Vehicles (Equipment only).....................
preoperating..................................
Engineering...................................
Capitalized Overhead..........................
Capitalized Interest..........................
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTAL
*Includes expenditures for Lifeline
702,000
6,942,000
6,086,000
100,000
1,813,000
106,000
85,000
200,000
98,000
513,000
820,000
913,000
$18,742,000
** Does not include construction cost of satellite uplink,
which will be constructed for a total cost of $187,000.00,
and which will be operational when the Cable Television
System is completely constructed.
4.6 Reduced Costs. Grantor and Grantee jointly ack-
nowledge that Grantee's projected investment was a factor in
the evaluation of franchise applications. Grantee agrees
that if the actual total system construction costs are more
than ten percent (10%) below the total estimated costs,
Grantor may at its sole option require Grantee to provide
additional facilities to the extent of the difference between
the actual construction costs and the estimated construction
costs less ten percent (10%) thereof. Grantee agrees to
provide such equipment and services as were proposed in its
application or the equivalent thereof. In the event that
equivalent equipment or services are proposed, the Grantor
shall be given fifteen (15) days advance notice thereof with
appropriate explanations therefor. Grantor's approval of
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such proposals shall not be unreasonably withheld and its
decision shall be given to Grantee, in writing, within thirty
(30) days of receipt of Grantee's notification.
4.7 Erection of Poles and Undergrounding. If additional
poles in an existing utility system route are required,
Grantee shall negotiate with the utility company for the
installation of the needed poles or Grantee may at its option,
subject to the prior approval of Grantor, construct necessary
poles. Grantee shall negotiate the lease of pole space and
facilities from the existing pole owners for all aerial
construction, under mutually acceptable terms and conditions.
Grantor shall utilize its best efforts to assist in arriving
at an equitable pole rental agreement. Grantee shall provide
underground facilities where appropriate and in accordance
with Grantor's underground schedule for utilities, and shall
comply with the provisions of Sections 34-82 et~. and
Chapter 37 of the Santa Ana Municipal Code. Grantee agrees
to restore roads- streets, alleys, avenues, highways, canals,
ditches or flumes used for construction, operation, or main-
tenance of cables to at least the same condition, to the
reasonable satisfaction of Grantor's Director of Public
Works, as said roads, streets, alleys, avenues, highways,
canals, ditches or flumes existed prior to such construction,
operation or maintenance. Grantee agrees to provide adequate
safeguards to afford security to life and property during
installation and maintenance of cables, with due regard
being given to other existing uses of such roads, streets,
alleys, avenues, highways, canals, ditches or flumes. Grantee
expressly agrees to the terms and conditions stated in Charter
Section 1304, incorporated herein and made a part hereof by
reference.
4.8 Trimming of Trees. In the conduct of its business,
subject to the prior ,written approval of Grantor's Director
of Public Works, Grantee shall be allowed to trim trees in
order to provide space for its facilities. Such tree trimming
shall be done in compliance with applicable ordinances and
in a safe and efficient manner with due regard for the health
of the trees involved. Grantee shall exercise diligence to
assure that trees are trimmed as little as possible and
follow practices designed to cause the minimum amount of
trauma to the trees being trimmed. All refuse created by
tree trimming will be removed and disposed of by Grantee in
an acceptable manner.
4.9
System Interconnection.
(a) No later than ninety (90) days after the time
of completion of construction of the Santa Ana system, inter-
connection will be activated with Grantee systems in Fullerton
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and Newport Beach with at least one channel each way between
the Santa Ana system and the other two said systems.
(b) No later than ninety (90) days after the time
of completion of the Seal Beach, Buena Park, and other potential
systems in Orange County, interconnection will be activated
with the Santa Ana system with at least one channel each way
between said systems of the Grantee and the Santa Ana system.
(c) Grantee will make a satellite uplink opera-
tional in Santa Ana no later than the time of completion of
the Santa Ana cable television system. The cost of said
uplink shall not be included in the rate base for the Santa
Ana cable television system.
(d) No later than one (1) year after the award of
the franchise and acceptance of this agreement, Grantee will
enter negotiations with non-Group W systems contiguous to
Santa Ana to interconnect with said systems with at least
one channel each way between said systems and the Santa Ana
system. At the time of completion of construction of the
Santa Ana system, Grantee shall report the status of such
negotiations to Grantor. Within six (6) months after com-
pletion, Grantee shall either activate such interconnection
or report to the Grantor the status of negotiations and
allow Grantor to engage in such negotiations. Group W Cable,
Inc., will be prepared to agree to pay up to 50 percent
(50%) of the cost of said interconnections and will report
on the status of said negotiations within six months of
completion of the Santa Ana cable television system. Nothing
included herein shall be interpreted to mandate interconnection
with another system unless the other system's interconnection
equipment is equal in quality to the counterpart equipment
in the Santa Ana system.
(e) Grantee will enter negotiations with non-
contiguous non-Group W Cable, Inc., systems ~n Orange County
to interconnect with at least one channel each way between
said systems and the Santa Ana system upon completion of the
Santa Ana system. six (6) months after completion of the
Santa Ana system, Grantee shall report to Grantor the status
of such negotiations. On or before twelve (12) months after
completion of the Santa Ana system, Grantee shall either
activate such interconnection or report to Grantor the status
of negotiations and allow Grantor to engage in such negotiations.
SECTION 5.
SYSTEM DESIGN AND PERFORMANCE REQUIREMENTS.
5.1 System Configuration. The cable television system
shall consist of at least two interconnected networks, a
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residential, or "A" Cable, network and an institutional, or
"B" Cable, network. Both networks shall provide activated
bidirectional communications capability in their initial
configurations.
5.2 Channel Capacit~. The cable television system
shall be installed to dellver signals at frequencies up to
four hundred (400) megahertz (MHz), with specific channel
capacity as indicated below.
Signal Channel
Cable Network Signal Direction Frequency Capacity
Residential (AI) Outbound 54-400MHz 52 plus FM
band
Residential (AI) Inbound 5-30 MHz 4 video
equivalent
Residential (A2) Outbound 54-400MHz 52 plus FM
band
Residential (A2) Inbound 5-30 MHz 4 video
equivalent
Institutional (B) Outbound 168-400 MHz 38
Institutional (B) Inbound 5-108 MHz .16
5.3 Satellite Earth Stations. Grantee shall provide
three (3) satelllte earth stations initially. Grantee shall
reasonably provide a sufficient number of earth stations to
receive signals from all operational communications satellites
that generally carry programs available to cable systems,
throughout the life of the franchise.
5.4 Capacity of Interactive Residential Services. Grantee
shall provide the ability to expand the initial system to
add the capacity for interactive residential services including,
but not limited to, security alarm monitoring, home shopping,
energy management, home banking, teletext, information access
and retrieval, subscriber polling, video games and one-way
or interactive education. All customer equipment necessary
for such services, such as the addressable interactive con-
verters, home terminals and home detectors, shall be provided
to subscribers by Grantee in accordance with established and
uniform rate schedules.
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5.5 Cablecasting Facilities. Grantee shall provide the fol-
lowing cablecasting facilities or their equivalent for the cable
system serving the City, at the estimated costs shown:
Unit
Cost
FaetH ty
Quantity
Total
Cost
Main Facility-Group W Cable
L/O Studio
Master Control
Eng Van
Film Chain
Portable Microwave
TOTAL (Main Facility-
Group W Cable)
1
1
1
1
1
843,000
225,000
543,000
65,000
30,000
843,000
225,000
543,000
65,000
30,000
$1,706,000
Public Access Grant
TOTAL (Public Access Grant)
$
237,275
City of Santa Ana
(Installation & Lighting at:)
Council Chambers 1
County Supervisors 1
Stadium 1
Museum 1
Zoo 1
City Training Room 1
Central Community 1
Library 1
Interactive Terminals 13
TOTAL (City of Santa Ana)
Studio
Character Generator
Television Sets
Origination Points
TOTAL (Parochial
1
1
50
4
Schools
1,500 1,500
1,500 1,500
5,000 5,000
2,000, 2,000
5,000 5,000
1,500 1,500
1,500 1,500
1,500 1,500
500 6,500
$ 26,000
$ 251,050
44,566 44,566
4,100 4,100
450 22,500
1,500 666,000
$ 77,166
$2,297,491
Public Schools Grant
TOTAL (Public Schools)
Parochial Schools
GRAND TOTAL
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Grantee agrees that if the actual installed costs of the cable-
casting facilities are more than ten percent (10%) below the
estimated capital costs, Grantor may at its sole option require
Grantee to provide additional facilities to the extent of the
difference between the actual costs and the estimated costs less
ten percent (10%) thereof. In the event the actual costs exceed
the estimated costs by more than ten percent (10%), Grantor shall
give due consideration to a rate request by Grantee to the extent
of the difference between the actual costs and the estimated costs
plus ten percent (10%) thereof.
5.6 Emergenc~ Alert Capability. Grantee shall provide
the system capablllty to transmit an emergency alert signal
to all participating subscribers. Grantee shall also provide
an emergency audio override capability to permit Grantor to
interrupt and cablecast an audio message on all channels
simultaneously in the event of disaster or public emergency.
5.7 Standby Power. Grantee shall provide standby
power generating capacity at the cable communications system
control center and at all hubs. Grantee shall maintain
standby power system supplies, rated at least at four (4)
hours duration, throughout the distribution networks.
5.8 Parental Control Lock. Grantee shall provide
subscribers, upon request, at no charge, with a parental
control locking device or digital code that permits inhibiting
the viewing of premium channels.
5.9 Status Monitoring. Grantee shall provide an
automatic status monitoring system as an integral part of
both the residential and the institutional cable networks.
5.10 Technical Standards. The Federal Communications
Commission (FCC) Rules and Regulations, Part 76, Subpart K
(Technical Standards), shall apply. However, because of
the recent development of interactive and other innovative
services, modifications of FCC standards, as presented in
the specifications below, are considered as necessary to
meet system service objectives.
Applicable Technical Standards
(1) Forward Signals-Class I Channels. The system
shall be capable of carrying 104 Class I Television Channels
and the full FM broadcast band. The combined forward trunk
and distribution system shall deliver signals to each sub-
scriber's TV receiver that will meet or exceed the following
specifications at the mean system temperature ~ 70oF. This
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shall include the effects of drop cables, interior splits,
and any terminal equipment such as descramblers and set-top
converters.
A. Carrier- to-No ise 46 dB
B. Hum Modulation Less than 2%
C. Peak-to-Valley ~ 1 dB
- Any 6 MHz Channel
- 54-400 MHz + 3 dB
D. Adjacent Channel 2 dB
(2) Reverse Signals. The reverse channels
shall have the capability of providing return signals from
any subscriber tap to the extreme end of any area without
noticeable signal degradation or interference.
A. The system capability shall include transmission
of color video, black and white video, and both low and
high speed data, whether analog or digital.
B. If necessary to prevent the build-up of noise and
distortion products, the area shall be divided into sections,
and sub-trunks run to a central hub within the area. Equiva-
lent alternatives such as addressable taps or switches may
be utilized.
C. No more than + 54 dBmV output level shall be
required out of any customer interface device to meet the
system specifications.
D. Where applicable, the end of the system specifications
shall include the effects of any signal reprocessing equipment
necessary to achieve forward transmission.
E. For Class I signals, the signal delivered to the
subscriber's TV receiver, after being transmitted to the
headend, processed and retransmitted down a forward channel,
shall meet the specifications of (1) above.
5.11 (a) Performance Testing. Grantee shall perform
all tests necessary to determine compliance with the technical
standards of FCC 76.601. Tests shall include the following,
as a minimum:
Pre-Construction
Initial Proof of Performance
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Annual Compliance Tests
Tests in Response to Subscriber Complaints
Monthly Monitor Tests
Written records of test results shall be maintained,
and shall be available for Grantor inspection upon request.
(b) The tests for the cable system shall be
performed periodically, at intervals of no greater than
every six (6) months, on television receivers at a minimum
of twenty (20) locations, located throughout the service
area. At least eight (8) of these locations shall be at
the far end of the distribution trunk cables. The tests
shall be witnessed by representatives of the Grantor, and
written test reports shall be submitted to the Grantor. If
more than ten percent (10%) of the locations tested fail to
meet the performance standards, the Grantee shall be required
to indicate what corrective measures have been taken, and
the entire test shall be repeated for at least twenty (20)
different locations. If a second test results in failure of
more than ten (10%), the Grantor may at its sole option
reduce subscriber rates due to degraded service, unless the
circumstances of the failure are caused by conditions which
are beyond the Grantee's reasonable control or which are
not reasonably foreseeable. In imposing this penalty Grantor
shall comply with the provisions of Section 10.4 hereof.
SECTION 6.
SERVICES AND PROGRAMMING
6.1 Initial Services and Programming. Grantee shall
provide, as a minimum, the initial services and programming
listed in this section. If any listed service shall become
unavailable, or cannot be provided under existing FCC
regulations, Grantee shall provide substitute programming
considered at least as attractive to cable system subscribers.
Grantee shall not reduce the number of program services
without prior written notification to and approval by Grantor.
Grantor's approval shall not be unreasonably withheld and
its written decision shall be given to Grantee within thirty
(30) days from receipt of its notification. Grantee may add
new services at any time. Where the new services are services
which the Grantor may regulate, then those new services
shall be subject to Grantor approval of any new rate or rate
increase necessitated by the added service. Grantee may
combine programming into composite channels to improve ef-
ficiency of channel utilization or to attract a larger
viewing audience.
6.2 Basic Subscriber Television Services. Grantee
shall provide Basic Subscriber Television Services in three
(3) price tiers, as follows:
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Tier I
(12 channel service)
7 channels provided by Grantor to include:
Santa Ana College channel #1, Public School
channel, General Government channel, Public
Access, and 3 to be selected.
5 channels provided by Grantee to include:
Local Origination, Parochial School channel,
Community Buletin Board channel, and 2 to
be selected.
Tier II
(42 channel service)
The 12 channels provided in Tier I above, plus:
3 channels to be provided by Grantor to include:
Santa Ana College channel #2, State University
channel, and 1 to be selected.
21 channels to be provided by Grantee to include:
(a) Subject to availability, carriage of 18 Los
Angeles area television broadcast stations
as shown below:
KNXT -- Channel 2 (Los Angeles)
KNBC -- Channel 4 (Los Angeles)
KTLA -- Channel 5 (Los Angeles)
KABC -- Channel 7 (Los Angeles)
KHJ -- Channel 9 (Los Angeles)
KTTV -- Channel 11 (Los Angeles)
KCOP -- Channel 13 (Los Angeles)
KSCI -- Channel 18 (San Bernardino)
KWHY -- Channel 22 (Los Angeles)
KVCR -- Channel 24 (San Bernardino)
KCET -- Channel 28 (Los Angeles)
KHOF -- Channel 30 (San Bernardino)
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KMEX -- Channel 34 (Los Angeles)
KTBN -- Channel 40 (San Bernardino)
KOCE -- Channel 50 (Huntington Beach)
KBSC -- Channel 52 (Corona)
KGOF -- Channel 56 (Anaheim)
KLCS -- Channel 58 (Los Angeles)
(b) Satellite News I channel
(c) 1 leased access channel
(d) 1 channel to be selected by Grantee
6 channels to be left open so as not to interfere
with FAA Communications
(3 )
Tier III
(99 channel service)
The 42 channels provided in Tiers I and II
above plus:
16 channels to be provided by Grantor to
include 4 Public School channels plus 12
channels to be selected.
32 channels to be provided by Grantee to
include:
(a)
5 distant television broadcast stations:
WGN -- Chicago
WOR -- New York
WTBS -- Atlanta
XETV -- Tijuana, Mexico
XEWT -- Tijuana, Mexico
Grantee shall also provide programming for either KFMB
and/or KGTV San Diego as a composite network substitute should
the ABC or CBS affiliates in Los Angeles (KNBC or KNXT) black
out a network program.
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(b)
(c)
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Subject to availability, carriage of 20
video programming services distributed
by communications satellite, including:
American Educational Television Network (AETV)
Appalachian Community Service Network (ACSN)
Alpha Repertory Theater Service (ARTS)
Black Entertainment Television (BET)
Cable News Network) (CNN)
CBS Cable
Cable-Sattellite Public Affairs Network (C-SPAN)
Christian Broadcasting Network (CBN)
Daytime
Entertainment and Sports Programming Network (ESPN)
Modern Satellite Network (MSN) [Shared with a
pay channel]
Nashville Network
National Christian Network (NCN)
Nickelodeon
People That Love Television Network (PTL)
Satellite News Channel II
The Shopping Channel
The Weather Channel
USA Network (Madison Square Garden/Calliope)
1 additional satellite service to be selected
by Grantee.
Carriage of 5 alphamuneric programming
services, including:
Pay TV Program Guide
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Reuters Financial/Sports News
Reuters News View
Spanish News
State and Local News
(d) 1 leased access channel
(e) 1 channel to be selected by Grantee
9 full-time channels for optional pay TV services
6.3 Interactive Subscriber Television Services. Grantee
shall provide lnteractive subscriber television serVlces on
one (1) price tier as follows:
Tier IV
(104 channel service)
The 99 channels in Tiers I, II, and III in Section
6.2 above plus:
4 interactive channels
1 interactive educational channel
6.4 Pay Television Services. In addition to the Basic
and Interactive Subscriber Television Services, Grantee
shall offer the following optional pay-television services
or equivalent programming of the same general class to the
extent it is available.
Bravo
Cinemax
The Disney Channel
The Entertainment Channel
Galavision
Home Box Office
Home Theater Network Plus
The Movie Channel
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Showtime
The Z Channel
6.5 Leased Channel Service. Grantee shall offer to
the public at least four (4) leased channels, consisting of
two on the Institutional Network (one upstream and one down-
stream) and two downstream channels on the Subscriber Network,
as shown in Section 6.2. These leased channels shall be
offered at nondiscriminatory rates, upon reasonable terms
and conditions and no applicant for the same shall be unreas-
onably refused such leased channel.
6.6 Basic Subscriber Radio Service. Grantee shall
provide Basic Subscriber Radio Service, including the following:
No less than thirty-eight (38) FM radio stations
Three (3) FM channels dedicated to Grantor
One (1) FM Access Channel operated for the blind
Synthesized stereo for pay-television programs,
the three (3) television networks and Public Broad-
casting Service (PBS) television.
6.7
Grantor Channels.
(a) Grantee shall provide carriage of the twenty-
six (26) video programming channels (156 MHz of bandwidth)
assigned to Grantor in Section 6.2 in Tiers I, II and III,
at least one (1) of which shall have a cable channel capa-
bility for interactive services. Grantors channels may be
used by Grantor for non-commercial programming or for com-
mercial services pursuant to Section 6.7 (b) hereof. In the
event Grantee expands capacity, Grantor shall be assigned
two (2) access video programming channels within such ex-
panded capacity.
(b) It is not the intention of Grantor to offer
commercial services or commercial programming to cable sub-
scribers of the City; rather, it is the intention of Grantor
and Grantee to provide to cable subscribers of the City a
broad diversity and variety of commercial programming, non-
commercial programming, and commercial services to the greatest
extent possible. It is acknowledged that this diversity now
exists in the proposal submitted by Grantee and it is the
intention of Grantor and Grantee that such diversity continue
in the future. If after discussion with Grantee, however,
Grantor determines that: (i) a commercial service is not
being made available by Grantee; and (ii) a present need
exists for such commercial service, then:
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(1) Grantor shall notify Grantee of such
determination and request Grantee to offer such commercial
service on one of Grantee's channels. Grantee shall have
forty-five (45) days in which to agree or disagree on of-
fering such commercial service, or agree to lease one of the
channels assigned to the Grantee to a third party which
offers such commercial service. If Grantee has utilized all
of its channel capacity and is requested to lease pursuant
to this paragraph, it may lease a channel from Grantor for
such purpose. If Grantee agrees to offer such commercial
service, Grantee in its sole discretion may select the type
of commercial service and the channel upon which it will be
offered. If Grantee agrees to lease such channel for such
purpose, then Grantee shall be entitled to lease such channel
on a fair and reasonable basis which allows for a reasonable
return to Grantee.
(2) If Grantee declines to offer such com-
mercial service or to lease a channel for such commercial
service, Grantor may provide such commercial service on one
of the channels assigned to Grantor pursuant to Section 6.2
at a cost which considers Grantee's cost of capitalization,
operational costs, and a reasonable rate of return. If
Grantor provides such commercial service pursuant to this
provision, Grantor shall indemnify and save harmless Grantee,
its officers, agents and employees, from and against any and
all damage to property, or damage to, or injury to, or death
of, any person or persons, and shall defend, indemnify and
save harmless Grantee, its officers, employees and agents
for any and all claims, demands, suits, actions or proceedings
of any kind or nature, resulting from or arising from Grantor
providing such commercial service.
For purposes of this section, "not being made
available" shall mean that: (i) the commercial service is
not offered by Grantee in one or another form; (ii) the
commercial service, although offered by Grantee in one or
another form, is only offered at a subscriber charge which
is so excessive when compared to a similar type commercial
service offered in other communities by cable companies as
to be determined by Grantor to be unconscionable; or (iii)
the commercial service, although offered by Grantee in one
or another form, is only offered at a subscriber charge
which economically prohibits a large segment of potential
users from access to such service; or (iv) the commercial
service is not sufficient to meet the requirements of the
significant user needs for such service.
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SECTION 7.
SUPPORT FOR LOCAL PROGRAMMING
Grantee shall provide the following in accordance
with the budget, "Exhibit B," attached hereto and incorporated
herein by reference.
7.1
Grant for Local Progamming
Grantee shall provide two hundred forty thousand
six hundred dollars ($240,600) per year during the term
hereof to Grantor for local programming.
7.2
Lease of Studio Facilities
Within six (6) months from and after the effective
date of the franchise, Grantor shall notify Grantee whether
or not Grantor shall provide a building of approximately
12,500 square feet for studio facilities. If Grantor no-
tifies it will provide studio facilities, Grantee agrees to
enter a lease with Grantor for the studio facilities, which
shall be a part of a studio-community facility. Lease pay-
ments for such studio facility shall be one-fifteenth (1/15)
of four million four hundred fifty thousand dollars ($4,450,000)
per year, plus twenty-five percent (25%) of the revenues
received by Grantee from leases of the facility for productions
which are not produced for the City and twenty-five percent
(25%) of advertising revenues resulting from programs produced
for the City and/or Orange County.
7.3
Administrative Space
Grantee shall have the option to include its admin-
istrative office in the studio facilities which may be pro-
vided by City pursuant to Section 7.2 at a rental price to
be negotiated.
7.4
Change of Use
Grantor's City Manager shall review the quality of
local programming performance of Grantee at the end of years
4,8 and 12 of the franchise term. If the City manager
reasonably determines that Grantee has not provided local
programming at a level anticipated by this agreement, i.e.,
"commercial quality," the City Manager shall report the
deficiency to the City Council. The City Council may de-
termine to offer the studio and operating budget for the
main facility to another production company to operate the
main facility and local programming.
7.5
Staff & Technical Services
Grantee shall provide to the City, the Bowers
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Museum, the Santa Ana Zoo, the Santa Ana Public Library, and
the County of Orange, staff and technical resources for
production of programming. Priority shall be given to the
foregoing for studio use and Grantee shall provide on-site
technical assistance to the foregoing as needed.
7.6
Public Access Assistance
Grantee shall provide technical production as-
sistance to the public access operator for the City and may
be requested to assume responsibility for the operations of
public access production if no other contractor is reasonably
available to the City.
SECTION 8.
SERVICE, RATES AND CHARGES
8.1 Initial Rates and Charges. Grantee's initial
rates and charges shall not exceed those listed in this
Section. Subject to the provisions of Section 8.3 herein,
Grantee shall offer all residential services to all residents
of the City within the time or times stated in Exhibit A,
the Schedule of Performance, at uniform installation charges
and monthly rates. New residences in active cable areas
shall be offered service within ninety (90) days from and
after occupancy.
8.2 Basic Service Residential subscribers. The
initial rates and charges for basic service to residential
subscribers shall not exceed the following: '
Tier I (12 channel service) Installation Monthly
Charge Charge
First TV Outlet $41.00 No charge
Additional TV Outlets, each 41.00 No charge
Converter (No deposit charge) No charge No charge
Relocation 18.95
Reconnection 18.95
Tier II (42 channel service)
First TV Outlet $14.95 $3.95
Additional TV Outlets, each 14.95* 2.50
Converter (No deposit charge) No charge No charge
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$14.95 $6.95
14.95* 2.50
No charge No charge
7.50
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Relocation
7.50
7.50
Reconnection
Tier III
(99 channel service)
First TV Outlet
Additional TV Outlets, each
Converter (NO deposit charge)
Relocation
Reconnection
7.50
Tier IV
(104 channel interactive and text service)
First T. V. Outlet
$14.95
14.95*
Additional TV Outlets, each
Converter (NO deposit charge)
No charge
Relocation
7.50
7.50
Reconnection
$11.95
7.50
No charge
*Installation charges waived if performed concurrent with
first outlet installation.
8.3
Basic Service -- Apartment, Commercial and
Public Facilities.
The initial rates and charges for basic service to
apartments, commercial organizations and public facilities
shall not exceed the following:
Installation
Charge
Apartments -- Bulk Rate -- All Tiers
First Outlet
Individual Es-
estimate after
Engineering
Study
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Monthly
Rate
80% of res-
idential
first set
rate for same
serv ice.
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Apartments -- Individual Rate -- All Tiers
First Outlet
Same as res-
idential rates
Reconnection Charge
Same as res-
idential rates
Commercial
Individual Es-
timate after
Engineering
Study
Governmental and Educational Facilities
First Outlet (per facility)
No charge for
first outlet;
Additionalout-
lets at cost
Public Supported Housing
Same as res-
idential rates
Same as res-
idential rates
50% of residen-
tial first set
rate for same
service
No charge
8.4 Pay-Television Service. The initial rates and
channels for pay-television services shall not exceed the
following:
Installation Monthly
Charge Rate
Home Theater Network 14.95 6.95
Bravo 14.95 5.95
The Movie Channel 14.95 7.50
Cinemax 14.95 7.50
Showtime 14.95 7.50
Galavision 14.95 7.50
"Z" Channel 14.95 8.50
*
Installation charges waived if performed concurrent
with first outlet installation.
8.5 Studio and Equipment Usage. Grantee shall not
exceed the following initial rates for access studio and
video equipment use:
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(1)
Non-Commercial Users
Rates
Studio production Time
No charge
Remote production Time
No charge
Supervision and Instruction
No charge
System Playback Costs
No charge
Editing Costs
No charge
(2 )
Commercial Users
Studio Production Time
$100.00 per hour
200.00 per hour
50.00 per hour
100.00 per hour
100.00 per hour
Remote Production Time
Supervision and Instruction
System Playback Costs
Editing Costs
8.6 Maintenance of Initial Rates. Grantee shall not
increase the initial rates for a period of thirty-six, (36)
months after the date of franchise award, or twenty-four
(24) months from the date cable service commences, or until
Grantee has completed all construction described in section
4.2 herewith, whichever is longest. The maintenance of
initial rates shall include pay-television rates, and Grantee
shall not utilize FCC or other preemption of pay-cable
rates to increase such rates prior to the expiration of the
period above. Upon the expiration of said period, those
rates and charges for those services for which rate regu-
lation is not preempted by federal or state agencies shall
be subject to regulation by Grantor.
8.7 Institutional Connection. Grantee shall connect
institutional service to the locations as shown on that
certain map on file in the Office of the Clerk of the Council,
entitled "Institutional Network Map," on or before the time
of completion of construction of the system.
Grantor may request future institutional service
connections and Grantee shall connect such service within
six (6) months after such request by Grantor, either through
an extension of the institutional network or through the
residential network, to the following institutional users.
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1.
Public Agencies
2.
Public Educational Institutions
3.
All other institutions as determined by Grantor
in the following categories: health care
facilities, senior citizen meeting facilities
open to public use except religious organi-
zations and parochial or private non-profit
educational facilities.
SECTION 9.
PURCHASING, TRAINING AND EMPLOYMENT REQUIREMENTS
9.1 Local Purchasing and Hiring policy. Grantee shall
establish a policy of employing City residents within its own
operations, and of utilizing City-based firms for purchases
and construction subcontracts, to the maximum extent possible.
Grantee shall provide Grantor with a written report of local
purchasing and hiring achievements at least annually for the
duration of the franchise.
9.2 Equal Employment Opportunity and Affirmative Action
Programs. Throughout the term of the franchise, Grantee
shall conduct its business as an Equal Employment Opportunity/
Affirmative Action Employer. In addition, throughout the
term of the franchise, Grantee shall maintain a policy that
all employment decisions, practices, and procedures are based
on merit and ability without discrimination in violation of
state or federal law on the basis of an individual's race,
color, creed, relition, age, sex, national origin, marital
status, or physical or mental handicap except as provided by
law. Grantee's policy shall apply to all employment actions
including advertising, recruiting, hiring, promotion, transfer,
remuneration, selection for training, company benefits, dis-
ciplinary action, lay-off or termination. Grantee shall
carry out this policy through continued dedication to a de-
termined and sustained effort to provide equal employment
opportunities to all by taking affirmative action to employ
and advance in employment qualified women, minorities, persons
who are physically or mentally handicapped, and veterans.
Grantee shall provide to Grantor's City Manager a written
Affirmative Action Program to carry out this policy no later
than ten (10) days prior to the date Grantee accepts this
franchise.
9.3 Employment Training Programs. Grantee shall, during
the entire term of the franchise, conduct an aggressive training
program to train local residents, particularly the unskilled
and semi-skilled, for employment in the cable industry.
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SECTION 10.
. .
, ,)
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REGULATION
10.1 Franchise Regulation. The franchise granted under
Ordinance No. NS-1628 shall be subject to regulation by Grantor
in accordance with the provisions of Charter Sections 1300 et
~ and Ordinance No. NS-1461. Grantor may, at its sole --
option, enter into joint regulatory agreements with other
grantors in adjacent jurisdictions served by the same cable
system.
10.2 Rate Regulation. Grantor may consider any or all
of the following factors in determining whether to approve,
modify or disapprove Grantee's requests for rate increases
during the term of the franchise:
( a)
(b)
(c)
(d)
(e)
Grantee's substantial fulfillment of all
material requirements of the franchise.
Quality of service, as indicated by the
number and type of service complaints,
Grantee's response to complaints, and the
results of periodic system performance tests.
Prevailing rates for comparable services
in other cable systems of similar size and
complexity.
Rate of return on Grantee's financial in-
vestment and equity, as compared to busi-
nesses of equivalent risk. The rate of
return shall be calculated on a cumulative
basis for all system revenues and costs in-
cluding services such as pay-television that
may be exempt from local rate regulation.
Grantor shall have the right to request from
Grantee all information as shall be reasonably
necessary to determine system reven~es and
costs. '
Performance of Grantee in introducing new ser-
vices and expanding the cable system's capa-
bility, as compared to other systems of similar
size and complexity.
10.3 Change in Rates. Increases in rates for basic
service shall be requested no more often than annually by
Grantee. Upon receipt of a rate increase request, Grantor or
its designee shall schedule a public hearing prior to arriving
at a decision. Grantor may request relevant financial and
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other information necessary to determine the justification
for the requested increase. Within ninety (90) days after
receipt of the rate increase request, Grantor, expressed by
resolution, shall approve the request in full, approve the
request in part, or disapprove the request. In any event,
Grantor shall provide findings as to the basis for its de-
cision. If no Grantor action has occurred within ninety (90)
days after receipt of the rate increase, the request shall be
deemed to have been approved.
10.4
Remedies for Franchise Violations.
(a) In addition to and without limiting the penalties
for delays as specified in Section 4.3 of this agreement,
Grantor reserves the right to impose the following penalties
in the event Grantee violates any other material provision of
this agreement, provided that Grantee has not commenced corrective
action within thirty (30) days written notice by certified
mail to the general manager of the Grantee:
( 1)
(2 )
(3 )
Impose a financial penalty, not to exceed
One Thousand Dollars ($1,000.00) per day
or per incident, for Grantee's individual
willful and/or repeated violation of the
franchise or this agreement or failure to
take corrective action with respect to a
violation of any provision of the franchise
or this agreement.
Require Grantee to make rate rebates or
payments to the customers or classes of
customers in such amount and on such
basis as Grantor may deem reasonable.
Require Grantee to correct or otherwise
remedy the violation prior to any rate
increase becoming effective.
(b) In the event the stated violation is not reas-
onably curable within sixty (60,) days, the franchise will not
be terminated or revoked or a penalty imposed pursuant to
this Section or Section 12 if Grantee provides, within the
said sixty (60) days, a plan, satisfactory to Grantor, to
remedy the violation and continues to demonstrate good faith
in seeking to correct said violation.
(c) In determining which remedy or remedies for
Grantee's violation are appropriate, Grantor shall take into
consideration the nature of the violation, the nature of the
remedy required in order to prevent further such violations,
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and such other matters as the Grantor may deem appropriate;
provided, however, that adequate penalties must be imposed if
service is in any way materially lessened, or if any material
provision of this franchise is not complied with.
ANY IMPOSITION OF MONETARY PENALTIES AS STATED IN THIS SECTION
MAY BE COLLECTED AND RETAINED BY GRANTOR AS LIQUIDATED DAMAGES
AND AS ITS PROPERTY WITHOUT ANY REDUCTION, OFFSET, OR RECOUPMENT
WHATSOEVER. GRANTOR AND GRANTEE AGREE THAT IT WOULD BE IMPRACTICABLE
OR EXTREMELY DIFFICULT TO FIX ACTUAL DAMAGES IN CASE OF GRANTEE'S
DEFAULT, AND THAT THE AMOUNT OF PENALTIES IS A REASONABLE AND
COMPLETE ESTIMATE OF GRANTOR'S DAMAGES. GRANTEE RECOGNIZES
THAT GRANTEE'S PROMPT DEVELOPMENT AND OFFERING OF SERVICES IS
OF CRITICAL IMPORTANCE TO GRANTOR. THIS SECTION IS SEPARATELY
APPROVED BY THE PARTIES TO THIS AGREEMENT IN ACCORDANCE WITH
CALIFORNIA CIVIL CODE SECTION 1677.
GRANTOR:
GRANTEE: G'Rç~P W tflì3LE).tN&,
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10.5 Public Disclosure. Whenever, pursuant to the
franchise, Grantee shall make available for inspection by
Grantor or submit to Grantor reports containing information
considered proprietary by Grantee, Grantor shall not disclose
or release such reports or information to the public without
Grantee's prior written consent.
~~
GORDON BRlð<EN, MAYOR
10.6 State of the Art and Annual Review. Every fourth
(4th) year during the term of this agreement, Grantee and
Grantor shall meet to review the system and the state of the
art for cable systems which are comparable to the Santa Ana
system. Grant,ee and Grantor shall review those services, if
any, which are operational and offered to cities with a pop-
ulation between 200,000 to 250,000 persons on a non-experimental
basis by Grantee or other comparable cable TV systems. Grantee
shall prepare and submit a report sixty (60) days prior to
such meetings outlining any such services which are offered
as hereinabove stated. Grantee and Grantor shall agree upon
which, if any, of such services are required by the City, the
costs of implementing such services, adjustments to the rate
structure resulting from such costs, the possibility of ex-
tending the term of the franchise to the term allowed by law,
the schedule for implementing such services, and any other
questions which arise concerning the technical and economic
-35-
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feasibility for implementing such services in Santa Ana. Any
and all disagreements between Grantor and Grantee on this
subject shall be promptly submitted to arbitration in accor"
dance with the rules of the American Arbitration Association,
provided that if a disagreement should exist with respect to
"costs" or "adjustments" to rate structure, then Grantor and
Grantee each shall submit their respective dollar estimates
for such "costs" and "adjustments") and the Arbitration panel
will then select either Grantor's estimate or Grantee's estimate,
based upon an evaluation of which is more reasonable.
Grantee shall cooperate and assist as required in the
annual quality review conducted by the Community Cable Citizens
Board.
10.7 Complaint Procedure. At least twenty five (25)
days prior to the date of acceptance of the franchise by
Grantee, Grantee shall provide a complaint procedure to
Grantor's City Manager for review and approval. Upon such
approval by the City Manager, Grantee shall abide by the
terms and conditions of such approved complaint procedure.
SECTION 11.
RIGHTS OF INDIVIDUALS PROTECTED
11.1 Discriminatory Practices Prohibited. Grantee shall
not deny sërvice, deny access, or otherwise discriminate
against subscribers, programmers, or general citizens on the
basis of race, color, creed, religion, national origin, marital
status, sex or age. Notwithstanding the foregoing, nothing
herein shall be construed as limiting the requirement or
ability of Grantee to assist or provide lower differential
rates for qualified senior citizens. Grantee shall strictly
adhere to the equal employment opportunity requirements of
the Federal Government, as expressed in Section 76.13(a)(8)
and 76.311 of Chapter 1 of Title 47 of the Code of Federal
Regulations as the same now reads or as hereafter amended.
Grantee shall comply at all times with all other applicable
Federal, State and City laws, and all executive and administrative
orders relating to non-discrimination.
11.2 Invasions of privacy and of Personal Rights Prohibited.
In the conduct of providing its services or pursuit
of any collateral commercial enterprise resulting therefrom,
Grantee shall take any and all necessary action to prevent an
invasion of a subscriber's or a general citizen's right to
privacy or other personal rights as such rights are delimited
and defined by applicable law. Grantee shall not without
lawful court order or other applicable valid legal authority
utilize the system's interactive two-way equipment or capability
for unauthorized personal surveillance of any subscriber or
general citizen.
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11.3 Permission of Property Owners Required. No cable
line, wire, amplifier, converter, or other piece of equipment
owned by Grantee shall be installed by Grantee without first
securing the written permission of the owner of any property
involved; provided, however, that where the property owner
has granted an easement or a servitude to another and the
servitude by its terms contemplates uses such as Grantee's
intended use, Grantee shall not be required to secure the
written permission of the owner for the installation of cable
television equipment or facilities unless Grantee elects to
do so. If permission is later revoked, whether by the original
or a subsequent owner, Grantee shall remove forthwith any of
its equipment which is visible and movable and promptly restore
the property to its original condition.
11.4 Sale of Personalized Data Restricted. Grantee
shall not sell or otherwise make available lists of the names
and addresses of subscribers, or any list which identifies,
by name, subscriber viewing habits, or personalized data
pertaining to a subscriber's use of any of Grantee's services
without the express consent of the subscriber to which the
personalized data pertains. For purposes of this Section,
"personalized data" shall mean the name and address of an
individual subscriber directly associated with data obtained
on his or her use of specific services provided by or through
the Grantee. Nothing herein shall be construed to prevent,
as a normal incident of commercial enterprise, the sale or
availability of "non-personalized" or "aggregated data" which
is not personalized data as defined herein.
11.5 Multiple Occupancy. Grantee shall be required to
provide service to individual units of a multiple housing
facility, planned development, community apartment project,
stock cooperative, or condominium similar to all services
offered to other dwelling units within the City, so long as
the owner of the facility or association governing the common
areas consents in writing, if requested by Grantee, to the
following:
(a) To Grantee's providing of the service to units
of the facility;
(b) To reasonable conditions promulgated by Grantee
to protect Grantee's equipment and to encourage widespread
use of the system; and
(c) To not demand or accept payment from Grantee
for permitting Grantee to provide service to the facility and
to not discriminate in rental charges, or otherwise, between
tenants who receive cable service and those who do not.
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The owner of the facility or association governing
the common area may require reasonable conditions and times
for installation, maintenance and inspection of the system on
the facility premises.
SECTION 12.
TERMINATION AND RENEWAL
12.1 Revocation. In addition to any rights set out
elsewhere in this agreement, Grantor reserves the right to
revoke the franchise and terminate this agreement, and all
rights and privileges pertaining thereto, in the event that:
(a) Grantee willfully or repeatedly violates any
material provision of the franchise or this agreement; or
(b) Grantee's construction schedule is delayed for
over eighteen (18) months; or
(c) Subject to the provisions of Section 12.2
hereof, Grantee becomes insolvent, is involuntarily adjudged
as bankrupt, or files a voluntary petition for relief under
the Bankruptcy Act; or
(d) Grantee is adjudged to have practiced any
fraud or deceit upon Grantor and such judgment becomes final
after all appeals are exhausted according to law.
Upon failure of Grantee to comply with the terms of
the franchise or this agreement or to commence appropriate
corrective action within sixty (60) days after receiving
written notice by certified mail to the General Manager of
the Grantee, of such noncompliance from Grantor, Grantor may
hold a public hearing to consider the option of revocation of
the franchise and termination of this agreement. Grantor
shall give Grantee at least ten (10) days advance written
notice of such hearing and shall also publish such notice in
advance in a newspaper of general circulation in the City.
If, after such hearing, at which Grantee shall be afforded
all due process of law including the right to appear and be
heard, Grantor shall determine that the franchise and this
agreement should be revoked, Grantor shall advise Grantee of
its decision in writing and may by ordinance declare a for-
feiture, whereupon all rights of the holders of the franchise
shall immediately be divested without a further act upon the
part of Grantor, and Grantee shall forthwith remove its struc-
ture or property from the streets and restore the streets to
such condition as Grantor may reasonably require and upon
failure so to do, Grantor may perform the work and collect
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the cost thereof from Grantee. The cost thereof shall be a
lien upon all plant and property of Grantee. Such lien shall
not attach to property of Grantee located on the poles or
other utilities until removal of such property from the pole.
12.2 Receivership. Grantor shall have the right to
revoke the franchise and this agreement one hundred and twenty
(120) days after the appointment of a receiver, or trustee,
to take over and conduct the business of Grantee, whether in
receivership, reorganization, bankruptcy, or other action or
proceeding, unless such receivership or trusteeship shall
have been vacated prior to the expiration of said one hundred
and twenty (120) days, or unless:
(a) Within one hundred and twenty (120) days after
his election or appointment, such receiver or trustee shall
have fully complied with all the provisions of the franchise
and this agreement and remedied all defaults thereunder; and
(b) Such receiver or trustee, within said one
hundred and twenty (120) days, shall have executed an agree-
ment, duly approved by the court having jurisdiction in the
premises, whereby such receiver or trustee assumes and agrees
to be bound by each and every provision of the franchise and
this agreement.
12.3 Expiration. Upon expiration of the initial term of
the franchise and consistent with Section 12.4 hereinbelow,
Grantor shall have the right, at its election, to:
(a)
(b)
proposals; or
renew or extend the franchise;
invite additional franchise applications or
(c)
terminate the franchise without further action.
Grantee shall make it a condition of each contract
entered into by it that Grantor shall have the right to exercise
these options.
12.4 Renewal. The franchise may be renewed by Grantor,
upon application of Grantee, in accordance with the then
existing rules of the FCC, and applicable law.
( a) Gran teë"'shan-suDm it' its applica tion for 'reÍíew"ál
at least nine (9) months prior to the'date of expiration.
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(b) Grantor shall schedule a hearing on the question
of renewal, with such hearing to take place at least six (6)
months before expiration of the franchise. At least ten (10)
days advance written notice of such hearing shall be given to
Grantee and shall be published in a newspaper of general
circulation in the City. At such hearing, Grantee shall have
full due process of law including the opportunity to appear
and be heard.
(c) Based upon information introduced at the hearing,
and any other relevant information that it may obtain from
Grantee, Grantor shall make a determination as to whether
Grantee has substantially complied with material requirements
of the franchise. Such determination shall be made not less
than two (2) months before the franchise expires, and a copy
of the written determination supplied to Grantee.
12.5 Continuit~ of Service Mandatory. It shall be the
right of all subscrlbers to receive all available services
insofar as their financial and other obligations to Grantee
are honored. In the event that Grantee elects to overbuild,
rebuild, modify, or sell the system, or Grantor revokes or
fails to renew the franchise, Grantee shall do everything
reasonable in its power to insure that all subscribers
receive continuous, uninterrupted service regardless of the
circumstances, during the lifetime of the franchise or for a
reasonable time beyond expiration of the franchise if required
by Grantor. In the event of purchase by Grantor, or a change
of Grantee, the current Grantee shall cooperate with Grantor
to operate the system for a reasonable temporary period,
which would maintain continuity of service to all subscribers.
SECTION 13.
RIGHT TO PURCHASE; REMOVAL
13.1 Condemnation
Unless otherwise provided herein, Grantor may in
any lawful manner and upon the payment of fair market value
lawfully ascertained, purchase, condemn, acquire, take over
and hold the property and plant of Grantee in whole or in
part.
13.2 Removal
Unless otherwise acquired by Grantor, if the fran-
chise is revoked or the term expires, Grantee agrees to remove
its system from the City within six (6) months from and after
the date Grantee is notified by Grantor to remove its system
from the City.
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13.3 Offer of Dedication.
Grantee hereby makes an irrevocable offer of dedi-
cation to Grantor of all underground conduit placed on public
and private property for operation of the system, which offer
of dedication may be accepted by Grantor Thirty (30) days
prior to expiration, termination or revocation of the franchise.
13.4 Main Facility Grant.
Upon expiration, termination or revocation of the
franchise, Grantee agrees to grant to Grantor the Main Facility,
equipment and fixtures constructed and equipped by Grantee
pursuant to Section 5.5 of this agreement without further
consideration from Grantor.
13.5 Option to Purchase Institutional Network.
In the event Grantor denies an application for
renewal made pursuant to Section 12.4 or the franchise other-
wise expires, Grantor is hereby granted an option to purchase
the institutional network from Grantee and any portion of the
residential network tied into the institutional network at
fair market value. Such option shall be exercised on or
before thirty (30) days prior to the expiration of the fran-
chise. For purposes of this section, it is not the intention
of Grantor to exercise the option granted herein for the
purpose of providing entertainment services or to re-sell the
institutional system, but is for the purpose of insuring
continuity of vital services in the event of nonrenewal or
expiration.
SECTION 14.
SEPARABILITY
14.1 Notwithstanding any other provisions of this
franchise to the contrary, Grantee shall at all times comply
with all laws and regulations of the state and federal goveru-
ment or any administrative agency thereof.
14.2 If any section, subsection, sentence, clause,
phrase or word of this franchise is for any reason held in-
valid or unconstitutional by any court or governmental body
of competent jurisdiction, such section, subsection, sentence,
clause, phrase or word shall be deemed a separate, distinct
and independent provision and such holding shall not affect
the validity of the remaining provisons hereof.
14.3 Should the State of California, the FCC, or any
other agency of the federal government subsequently require
Grantee to perform or cease to perform any act which is incon-
sistent with any provisions of the franchise, Grantee shall
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so notify Grantor. Upon receipt of such notification, Grantor
shall determine if a material provision of the franchise is
affected. Upon such determination, Grantor shall have the
right to modify or amend any of the sections of the franchise
to such reasonable extent as may be necessary to carry out
the full intent and purpose of the franchise. Grantee agrees
to fully cooperate in pursuing any modifications or amendments
of the franchise as may be necessary to carry out the intent
of the parties hereto. Grantor may terminate the franchise
in the event Grantor reasonably determines that substantial
and material compliance with the original proposed terms of
the franchise has been frustrated by such State or Federal
requirement. In the event Grantor shall terminate the franchise
pursuant to this section, Grantor shall purchase the system
from Grantee at fair market value.
SECTION 15.
FORCE MAJEURE; GRANTEE'S INABILITY TO PERFORM
Grantee's performance of any of the terms, con-
ditions, obligations, or requirements of this franchise shall
not be deemed to be in default where delay or defaults are
due to war, insurrections, strikes, lock-outs, riots, floods,
earthquakes, fires, casualties, acts of God, acts of the
public enemy, epidemics, quarantine restrictions or priorities,
litigation, unusually severe weather, inability to secure
subcontractors or supplies, acts or failure to act of Grantor
or any other public or governmental entity other than Grantor,
or any other cause beyond the control or without the fault of
Grantee. An extension of time for any such cause shall be
for the period of the enforced delay and shall commence to
run from time of the commencement of the cause, if notice by
Grantee claiming such extension is sent to Grantor within ten
(10) days of the commencement of the cause.
SECTION 16.
NOTICE
Formal demands, notices and communications between
Grantor and Grantee shall be sufficiently given if dispatched
by United States mail, postage prepaid, to the principal
office of Grantor at 20 Civic Center Plaza, Santa Ana, California
92701, or Grantee at 888 Seventh Avenue, New York, New York
10106, or to such other address as either party may, from
time to time designate. Notices shall be deemed made on the
date of deposit in the United States mail.
SECTION 17.
TAXES AND ASSESSMENTS
Grantee recognizes and understands that this
agreement may create a possessory interest subject to property
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taxation, and that Grantee may be subject to the payment of
property tax levied on such interest. All taxes and assessments
which become due and payable upon any premises, or upon fixtures,
equipment or other property installed or constructed thereon,
shall be the full responsibility of Grantee, and Grantee
shall cause said taxes and assessments to be paid promptly.
IN WITNESS WHEREOF, the parties hereto have
executed this agreement the date and year first above written.
ATTEST:
CITY OF SANTA ANA, a municipal
corporation of the State of
California
~~
GORDON BRzeKÉN, ~YOR
APPROVED AS TO FORM:
"Grantor"
:¡¡I(..¡
:~~~
By: (ltuAAW::f(~
STATE OF NEW YORK)
) ss:
COUNTY OF NEW YORK)
On this 1st day of June, 1982 before me appeared W.J, Bresnan
and Claire Feldman to me known as Chief Executive Officer and
Assistant Secretary of Group W Cable, Inc.
.;
mnf.Y P. R~:~.K
MIIwy Public, ~at, 'f New YJII<
No, 41,4624.161
GwIIIIcat, "led ia riew rock c""ty
~.. In Q".." (bynty
Ibnmiujon Expl"'" Ma,'<iI'. 30. 1964
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SANTA ANA CONSTRUCTION SCHEDULE - 21 MONTHS
(ASSUMING ORDINANCE IS EFFECTIVE 6/1/82)
COMPLETION DATES
-------------------------------------------------------------------
PHASE AREA 1 2 3 4 5 6
CONST. AREA (1-3) (4-6) (7-9) (10-11) (12-13) (14-15)
START
ACTIVITY
.. ,-'---------------------
.,; .Œ-CONSTRUCTION 6/1/82 6/30/82
STRAND MAPPING 6/30/82 7/23/82 11/12/82 11/12/82 11/12/82 11/12/82 11/12/82
MAKE-READY WALKOUT 7/26/82 10/9/82 12/8/82 2/5/83 3/15/83 4/21/83 3/15/83
.. ~(!LE APPLICATIONS 8/10/82 10/15/82 12/14/82 2/11/83 3/15/83 4/27/83 6/7/83
. ~~,KE-AlEADY ENGINEERING 8/20/82 11/26/82 1/27/83 3/28/83 5/2/83 6/11/83 7/18/83 J
MAKE-READY CLEARANCE 10/6/82 3/15/83 5/14/83 7/13/83 8/19/83 9/27/83 11/3/83
INSTALL STRAND 1/20/83 3/15/83 6/7/83 8/2/83 9/8/83 10/15/83 11/29/83 : I
INSTALL CABLE 2/2/83 4/5/83 6/7/83 8/2/83 9/8/83 10/15/83 11/29/83 E
"', æ
~PLICE CABLE 2/2/83 4/5/83 6/7/83 8/2/83 9/8/83 10/15/83 11/29/83 :c
-.",
'...
ACTIVATE POWER 3/28/83 5/3/83 6/28/83 8/17/83 9/21/83 10/26/83 11/29/83
ROUGH BALANCE 4/6/83 5/11/83 7/5/83 8/25/83 9/29/83 11/3/83 12/6/83
.. PROOF OF PERFORMANCE 4/11/83 6/2/83 7/21/83 9/13/83 10/18/83 11/19/83 12/22/83
. START CONNECTIONS 6/3/83 7/22/83 9/14/83 10/19/83 11/20/83 12/23/83
'
CITY ACCEPTANCE 6/24/83 8/13/83 10/5/83 11/9/83 12/10/83 1/14/84
",FINAL COMPLETION DATE 7/1/83 9/1/83 11/1/83 12/1/83 1/1/84 2/1/84
,....."
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GRANTEE LOCAL PROGRAMMING BUDGET
" ,
Studio & Staffing - Year 2
Main Studio Complex - Capital Cost
Studio
Van
Film Chain
Master Control
Microwave for Van
843,000
543,000
65,000
225,000
30,000
Total
$1,706,000
No. Unit Salary Benefits Total
Staffing positions Salary Cost (a 22% Sal/Bene
Program Manager 1 $ 30,000 $ 30,000 $ 6,600 $ 36,600
Producer/Director 1 18,000 18,000 3,960 21,960
Writer/Producer 1 18,000 18,000 3,960 21,960
Facilities Manager 1 25,000 25,000 5,500 30,500
Maintenance Engr 2 20,000 40,000 8,800 48,800
Operators 3 14,000 42,000 9,240 51,240
Technical Director 1 23,000 23,000 5,060 28,060
Production Asst 1 11,000 11,000 2,420 13,420
Public Relat's Mgr 1 20,000 20,000 4,400 24,400
Operations Asst 1 11,000 11,000 2,420 13,420
Sub Total 13 $238,000 $52,360, $290,360
Master
Control Staff
M. C. Operators 2 13,000 26,000 5,720 31,720
Total Staff 15 $264,000 $58,080 $322,080
Operating Costs
Rent (12000 SF @ 1.50/MO) $216,000
Purchased Programs 33,000
Tape 20,000
Maintenance Parts 35,000
Promotion 5,000
Miscellaneous 5,000
Total Operating $314,000
TOTAL LOCAL
PROGRAMMING BUDGET $264,000 $58,080 $636,080
EXHIBIT J3""""r1A.l, Z-
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LOCAL PROGRAMMING OPERATING BUDGET
Salaries Rent Purchase
Year & Benefits of Studio of Programs Other Total
1 . $ 295,000 $ 205,000 $ 33,000 $ 46,000 $ 579,000
2 . 322,000 216,000 33,000 65,000 636,000
3 350,000 227,000 33,000 71,000 681,000
4 382,000 238,000 33,000 76,000 729,000
5 416,000 248,000 33,000 82,000 780,000
6 454,000 259,000 33,000 90,000 836,000
7 495,000 281,000 33,000 98,000 907,000
8 538,000 292,000 33,000 107,000 970,000
9 588,000 302,000 33,000 116,000 1,039,000
10 . . , 640,000 324,000 33,000 125,000 1,123,000
11 698,000 335,000 33,000 137,000 1,203,000
12 . 760,000 356,000 33,000 149,000 1,299,000
13 829,000 367,000 33,000 162,000 1,391,000
14 904,000 389,000 33,000 177,000 1,502,000
15 . . 985,000 4l0,000 33,000 193,000 1,621,000
TOTAL $8,655,000 $4,450,000 $495,000 $1,695,000 $15,295,000
EXHIBIT ..,ß,.,...ft~.2 12-