HomeMy WebLinkAboutAgenda Report - November 5, 1986 (90)CITI• COUNCIL !,T�HNG
NOVEMBER 5, 1986 - -
RESOLUTION AVARDNG
COWUNITY CAW L
TEi"EVISION SYSTEM
REFRANCHISING TO KDU
VIDEIUCABLE: COhIPANY
RES. NO. 86-165 City Manager Petersor. for Counci.l's r>e, ,rsal and
approval a draft resc lution entitled, "Resolution GrItntirx;
CC -22(c) tion-Ecclusiv(: C( --,R mm:ity Cable Televisic,n 5ystejr, Franc -h1,'(-
giving a chronolo%' of everts lea(linc, t<.) the
of ttZe subje>ea. resolution foi Council'idoption.
Following discussion with questi,-vns bo lnc ti c::a i to
Staff, Co-ncil on matlo:i cc`t",ayc;r Itcic?, Olson second,
adopted Resolution No. 86-16 - "i'c c>1L� 6r,:rnti.nq
Non -Exclusive Ccxi m,,ity Cable. Television Svstem Franchise"
providing for tl.e refranchisinc, cf King \ . deocable Coo -ti any
to furnish cable television service in tit-, City of IAxii "(,r
a 20 -year period ;-onmencing November 6, 1986.
TO- THE CITY COUNCIL
.FROM: THE CITY MANAGER'S OFFICE
Cr_ -:ti CIL C01tMUNICAiIO
Novel ;C> 5, -1986
SUBJECT_ CABLE TELEVISION REFRANCHISING
City Manager
RECOWENDED ACTION: That the City Council adopt Resolution No. 86-165,
"Resolution Granting Non -Exclusive Ccr unit,,• Cable
Television System Franchise", providi-ng for ti -ie
refranchisi,ig of King Videocable Cam iy to furnish cable television servic-e in
the City of Lodi for a 20 -year period conmencing November 6, 198G.
BACKGROUND INFORMATION: After rmre than two years of review, analysis, public
hearings and negotiations, this resolution.
refranchising King Videocable C(n4-uly to pruvide
cable television service in the City of Lodi is ready for adoption. Tl-w---
resolution
heresolution itself is quite brief given the complexity of this matter. However,
it references the City's new cable television ordinance which is lengthy, ver..-
CoWlete, and in conformance wit) -i the Cable Communications Act of 1984. Also
attached to the resolution and referenced therein are the City Ma n.;ger's letter
to King Videocable C inpany addressing specific points in the company's
proposal, as well as the ccx aany's response to that letter. The chronology of
the more significant events leading to this point is:
Oct. 4, 1984 - City executes agreement with CTIC Ass«iates for
analytical and technical evaluation of City's cable
television franchise
May 29, 1985 - CTIC report of evaluation of King Videocable Company
service presented to the City Council
July 24, 1985 - City Council holds public hearing on cable television
service
Aug. 2, 1985 - City issues Request For Proposal for cable television
service
Dec. 18, 1985 - City Council adopts new cable television ordinance
Feb. 25, 1986 - King Videocable Con-pany submits proposal for franchise
renewal
May 16, 1986 - CTIC su}xnits evaluation of King Videocable Ccr.-pany
proposal
Sept. 16, 1986 - Proposal for cable television service reviewed by Clty
Council at "shirtsleeve" session
Nov. 5, 1986 - Resolution providing for refranchisii)g King Videocable
CcxYn,, prevented for City Council action
COUNCIL COMM MCAT ION
CABLE TELEVISION REFRi1MMILSING
Page 2
Cf:_t :r Liar V 198
The process, while lengthy and at tines slow moving, has been most thorough
with ample opportunity for public input along the way. The -,U,ff is :t sfitrca
that all facets of this issue have been addressed and resolved. The resoiuti;..i.
presented to the City Council for action, along with the supporting documera_:;,
are, for the most part, mutually agreeable. There might be one or t -w= � area:
disagreement between the staff recommendation and Kong Videcx•ai,le Cc�r�xiry'_;
position at Wednesday night's meting. One would be the matter ol t! ie
effective date of this refranchising. While the present :`ra y: •hi:. icy_ s not
expire until February, 1988, it is recommended that the ne.,> -�n�_nt 1.
effective November 6, 1986, the day after the City Council
company "lose=" 15 months in that this new agreement will e:pire in NkjvEn ,- ,
2006, instead of February, 2008. The latter date would represent a 20 -year
period from the expiration of the present agreement. however, tlo ccxni it:y
intends to start its rebuilding of the City's CATV system almost rt,cdi„tely
(in fact we understand some rebuild work has already been undertaktl;l) . In
of this, it seems totally appropriate that the agreement settLnq :-c;rth certa.i.r
requirements of the company as part of the rebuild be in place. To approve the
agreement at this time, with an effective date 15 months frexn now, i5 not. to the
City's advantage.
The second area of disagreement might be in the installation of permanent CAT`
cable in the new City Council Chambers. The staff's posit*on is ti -,at there be
nr. visible cable in the new Chambers. Special ball outlets for the television
cameras can easily be installed at the time of construction. The City would
provide the conduits for the cable. Not only would this eliminate the
unsightly cable we now see draped along the present Council Chamber wall during
meetings, but it would also make it much easier for the company to "set up" for
City Council meetings and whatever other events might be televised live from
that facility. The company's position is that this cable is quite expensive
and perhaps should be an expenditure of the City. Throughout this pro( --,s the
City has been quite reasonable and cooperative in an effort to reach solutions
acceptable to both sides, as has the company. Certainly the City Council's
"demands" of the ccupany have been modest. In view of this, the staff position
is that it is not unreasonable to require the installation of ccxrgxuiy-provided
cable.
King Videocable Company representatives will most certainly be in atter-dance at
Wednesday night's meeting. They, along with City staff, will be pleased to
answer any questions City Councilmembers may have.
Respectfully sukmirted,
Thomas A. Peterson
City manager
TAP:br
attachments
COUNC105
RESOLUTION NO. 86-165
RESOLUTION GRANTING NON--CCLUSIVE
COMMMIT': CABLE TELEVISION SYSTEM FRANCHISE
After nctice duly given, public hearing held, evidence received
and good cause appearing therefrom, the following resolution is adopted:
RESOLVED that a non-exclusive Ccmmmity Cable Television System
franchise is hereby awarded to King Videccable Company, 1521 South
Stockton Street, Lodi, California, subject to the following terms and
conditions:
(1) This franchise is granted subject to all of the terms and
conditions of the provisions of Ordinance No. 1370 adopted by the Lodi
City Council December 18, 1985, attached hereto as Exhibit A and
incorporated herein by reference, as well as representations,
statements and conditions set forth in t1e King Videocable Company
Proposal for the Community of Lodi, California, dated February 25,
1986, attached hereto as Exhibit B and incorporatea herein by
reference, and the City Manager's August 5, 1986 letter of review of
King Videocable Company's Proposal, attached hereto as Exhibit C and
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incorporated herein by reference, and King Videocable Ccxtq-.)any,s August 9;
1986 letter of Response thereto, attached hereto as Exhibit D and
in--�orporated herein by reference, and the Grantee shall be bound by all
of the terms of Ordinance 1370, this Resolution, the franchise proposal,
and the letter of review of the City Manager, and the response thereto by
King Videocable Coapany.
(2) The term of this franchise shall be for a period of 20 years,
caaoencing February 21, 1988, and terminating at midnight on February 20,
2008, provided, however, that the requirements and proposals set forth in
Exhibits A. B, C and D shall be effective November 6, 1986 and shall
remain in effect unless otherwise amended by action of the City Council..
(3) This resolution shall be of no force and effect until Sections
5.16.060, "Acceptance", 5.16.190 "Security Fund", 5.16.200 "Construction
Bond", and 5.16.250 "Insurance" of said Ordinance 1370 relating to
written acceptance, bonds, insurance policies, etc. have been ccuplied
with by the Grantee. In the event that there is non-ccnPliance with said
Sections 5.16.060, 5.16.190, 5.16.200; and 5.16.250, this Resolution
shall be void.
(4) In accordance with Section 5.16.070 "Conditions" of Ordinance
1370, this franchise is granted subject to the following condition:
"The Community Cable Television System herein franchised shall be
used and operated solely and exclusively for the purse expressly
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authorized by Ordinance of the City of Lodi and no other purpose
whatsoever."
(5) Grantee shall pay to the City of Lodi during the life of this
franchise, a stun equal to three percent of the annual gross receipts of
the grantee, payable quarterly. Ord. 1370, Section 5.16.090.
(6) A. Grantee sh,-ll file with the Lodi City Council a true and
correct schedule of rates to be charged for installation and connection
to its cable system and a monthly charge for cable service. Such rates
shall not be changed or modified in any manner without first filing the
changed or modified rates with the City Council thirty days prior to the
effective date of such change or modification.
B. The City Council shall have the authority to regulate the
rates to the extent the Council is permitted to by federal, state or
local law. Ord. 1370, Section 5.16.110.
(7) This franchise may not be sold, assigned, or transferred
without ccapliance with the provisions of Section 5.16.390 of Ordinance
No. 1370.
(8) Notwithstanding other terms and conditions herein set forth and
set forth in Ordinance No. 1370 and the franchis: proposal, this
franchise is granted upon the expressed condition that in accordance with
the provisions of Section 5.16.170 "Commencement of Construction and
Service", and Section 5.16.180, "Forfeitures and 'A!rmination", of
Ordinance No. 1370, the City Council reserves unto itself the right to
exercise its discretion as to whether the Grantee is proceeding with due
diligence to obtain the necessary permits and render service to all of
the participating subscribers in the City of I --,di. In the event the City
Council determines after notice and hearing to the Grantee that the
Grantee is not proceeding with due diligence, the City Council may, in
the exercise of its discretion, terminate and cancel the franchise herein
granted. Due diligence shall be determined by reference to the activities
of grantee as of the date of this resolution, and not from February 21,
1988.
(9) Grantee shall provide to the City of Lodi, the facilities to
Permit live coverage of events at three locations:
a. New City Council Chambers
b. Com mity Roan, Lodi Public Library
c. Hutchins Street Square
As to the new City Council Chambers, grantee shall provide for no
visible cable in said new Chambers. The City shall provide the conduit.
Franchisee shall provide free cc m udty cable television service to
other City facilities as requested by City.
Dated: November 5, 1986
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I hereby certify that Resolution No. 86-165 was passdd and adopted
by the City Council of the Cit_ of Lodi in a. regular. meeting ,held
November 5, 1986 by the following vote:
Ayes: Council Members Hinchmc-m, Olson, Pinkerton, Snider and Reid
Noes: Council Members - None
Absent: Council Members - None
k' A
Alice M. i=4
City Clerk
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AMENDEI)
RESOLUTION NO.
RESOLUI`ION GRANTING NON-EXCLUSIVE
CC 11TITUNITY CABLE TEL.E'VISION SYSTEM FRANCHISE
After notice duly given, public hearing held, evidence received
and good cause appearing therefrom, the following resolution is adopted:
RESOLVED that a non-exclusive Cori mity Cable Television System
franchise is hereby awarded to KLig Videocable Company, 1521 South
Stockton Street, Lodi, California, subject to the following terms and
conditions:
(1) This franchise is granted subject to all of the terms and
conditions of the provisions of Ordinance No. 1370 adopted by the Lodi
City Council December 18, 1985, attached hereto as Exhibit A and
incorporated herein by reference, as well as representations,
statements and conditions set forth in the King Videocable Company
Proposal for the Community of Lodi, California, dated February 25,
1986, attached hereto as Exhibit B and incorporated herein by
reference, and the City Manager's August 5, 1986 letter of review of
King Videocable Company's Proposal, attached hereto as Exhibit C and
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incorporated 'herein by reference, and Kilig Videoca:zle CCUgDany`s August 9,
1986 letter of Response thereto, attached hereto as Exhibit D;and
incorporated herein by reference, and the Grantee shall be bound by all
of the terms of Ordinance 1370, this Resolution, the franchise proposal,
and the letter of review of the City Manager, and the response thereto by
King Videocable Ccnpany.
(2) The term of this franchise shall be for a period of 20 years,
commencing February 21, 1988, and terminating at midnight on February 20,
2008, provided, however, that the requirements and proposals set forth in
Exhibits A, B, C and D shall be effective November 6, 1986 and shall
remain in effect unless otherwise amended by action of the City Council..
(3) This resolution shall be of no force and effect until Sections
5.16.060, "Acceptance", 5.16.190 "Security Fund", 5.16.200 "Construction
Bond", and 5.16.250 "Insurance" of said Ordinance 1370 relating to
written acceptance, bonds, insurance policies, etc. have been ccWlied
with by the Grantee. In the event that there is non-compliance with said
sections 5.16.060, 5.16.190, 5.16.200, and 5.16.250, this Resolution
shall be void.
(4) In accordance with Section 5.16.070 "Conditions" of Ordinance
1370, this franchise is granted subject to the following condition:
"The Ccmmuiity Cable Television System herein franchised shall be
used and operated solely and exclusively for the purpose expressly
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(5) Grantee shall pay to the City of Lodi during the life of this
franchise, a sum equal to three percent of the annual gross receipts of
the grantee, payable quarterly. Ord. 1370, Section 5.16.090.
(6) A. Grantee shall file with the Lodi City Council a true and
correct schedule of rates to be charged for installation and coruzection
to its cable system and a monthly charge for cable service. Such rates
shall not be changed or modified in any manner without first filing the
changed or modified rates with the City Council thirty days prior to the
effective date of such change or modification.
B. The City Council shall have the authority to redilate the
rates to the extent the Council is permitted to by federal, state or
local law. Ord. 1370, Section 5.16.110.
i7) This franchise may not be sold, assigned, or transferred
without cr)npliance with the provisions of Section 5.16.390 of Ordinance
No. 1370.
(8) Notwithstanding other terms and conditions herein set forth and
set forth in Ordinance No. 1370 and the franchise proposal, this
franchise is granted upon the expressed condition that in accordance with
the provisions of Section 5.16.170 "Commencement of Construction and
Service", and Section 5.16.180, "Forfeitures and Termination", of
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Ordinance No. 1370, the City Council reserves unto itself the right to
exercise its discretion as to whether the Grantee is proceeding with due
diligence to obtain the necessary permits and render service to all of
the participating subscribers in the City of Lodi. In the event the City
Council determines after notice and hearing to the Grantee that the
Grantee is not proceeding with due diligence, the City Council may, in
the exercise of its discretion, terminate and cancel the franchise herein
granted. Due diligence shall be determined by reference to the activities
of grantee as of the date of this resolution, and not from February 21,
1988.
(9) Grantee shall provide to the City of Ircdi, the facilities to
permit live coverage of events at three locations:
a. New City Council Chambers
b. Co n mity Roan, Lodi Public Library
C. Hutchins Street Square
As to the new City Council Chambers, grantee shall provide for no
visible cable in said new Chambers. The City shall provide the conduit.
Franchisee shall provide free community cable television service to
other City facilities as requested by City.
Dated:
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I hereby certify that Resolution No. was passed and adopted
by the City Council of the City of Lodi in a regular meeting
held by the following vote:
Ayes: Council Members
Noes: Council Members
Absent: Council Members
Alice M. Reimche
City Clerk
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RESOLUTION NO. 86-165
RESOLUTION GRAWEiG NON-EXCLUSIVE
COMMUNITY CABLE TELEVISION SYSTEM FRANCHISE
After notice duly given, public hearing held, evidence received
and good cause appearing therefrom, the following resolution is adopted:
RESOLVED that a non-exclusive Cc m mity Cable Television System
franchise is hereby awarded to King Videocable Company, 1521 South
Stockton Street, Lodi, California, subject to the following terns and
conditions:
(1) This franchise is granted subject to all of the terns and
conditions of the provisions of Ordinance No. 1370 adopted by the Lodi
City Council December 18, 1985, attached hereto as Exhibit A and
incorporated herein by reference, as well as representations,
statements and conditions set forth in the King Videocable Company
Proposal for the Carrmtmity of Lodi, California, dated February 25,
1986, attached hereto as Exhibit B and incorporated herein by
reference, and the City Manager's August 5, 1986 letter of review of
King Videocable Company's Proposal, attached hereto as !3xhibit C arc',
incorporated herein by reference, and King Videocable Company's August
9, 1986 letter of Response thereto, attached h-reto as Exhibit D and
incorporated herein by reference, and the Grantee shall be bound by all
of the terms of Ordinance 1370, this Resolution, the franchise
f proposal, and the letter of review of the City Manager, and the
response thereto by King Videocable Canpany.
r (2) The term of this franchise shall be for a period of 20 years,
commencing February 21, 1988, and terminating at midnight on February
20, 2008, provided, however, that the requireirw-nts and proposals set
forth in Exhibits A, B, C and D shall be effective November 6, 1986 and
shall remain in effect unless otherwise amended by action of the City
Council..
(3) This resolution shall be of no force and effect until
Sections 5.16.060, "Acceptance", 5.16.190 "Security Fund", 5.16.200
"Construction Bond", and 5.16.250 "Insurance" of said Ordinance 1370
relating to written acceptance, bonds, insurance policies, etc. have
been ccmplied with by the Grantee. In the event that there is
non-conpliance with said Sections 5.16.060, 5.16.190, 5.16.200, and
5.16.250, this Resolution shall be void.
(4) In accordance with Section 5.16.070 "Conditions" of Ordinance
1370, this franchise is granted subject to the following condition:
"The Commmity Cable Television System herein franchised shall
be used and operated solely and exclusively for the purpose
expressly authorized by Ordinance of the City of Lodi and no
other purpose whatsoever."
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(5) Grantee shall pay to the City of Iodi during the life of this
franchise, a sum equal to three percent of the annual gross receipts of
the grantee, payable quarterly. Ord. 1370, Section. 5.16.09G.
(6) A. Grantee shall file with the Lodi City Ccuncil a true and
correct schedule of rates to be charged for installation and connection
to its cable system and a monthly charge for cable service. Such rates
shall not be changed or modified in any mariner without first filing the
changed or modified rates with the City Council thirty days prior to
the effective date of such change or modification.
B. The City Council shall have the authority to regulate the
rates to the extent the Council is permitted to by federal, state or
local law. Ord. 1370, Section 5.16.110.
(7) This franchise may not be sold, assigned, or transferred
without compliance with the provisions of Section 5.16.390 of Ordinance
No. 1370.
(8) Notwithstanding other terms and conditions herein set forth
and set forth in Ordinance No. 1370 and the franchise proposal, this
franchise is granted upon the expressed condition that in accordance
with the provisions of Section_ 5.16.170 "Conmencement of Construction
and Service", and Section 5.16.180, "Forfeitures and Termination", of
Ordinance No. 1370, the City Council reserves unto itself the right to
exercise its discretion as to whether the Grantee is proceeding with
due diligence to obtain the necessary permits and render service to all
of the participating subscribers in the City of Lcdi. in Cie event the
City Council determines after notice and hearing to the Grantee that
the Grantee is not proceeding with due diligence, the City CoLuicil may,
in the exercise of its discretion, terminate and cancel the franchise
herein granted. Due diligence shall be determined by reference to the
activities of grantee as of the date of this resolution, and not from
February 21, 1988.
(9) Grantee shall provide to the City of Lodi, the facilities to
pernni.t live coverage of events at three locations:
a. New City Council Chambers
b. Co mmnity Rocm, Lodi. Public Library
c. Hutchins Street Square
As to the new City Council Chambers, grantee shall provide for no
visible cable in said new Chambers. The City shall provide the
conduit.
Franchisee shaI.l provide free emnunity cable television service
to other City facilities as requested by City.
Dated: November 5, 1986
I hereby certify that Resolution No. 86-165 was p-sced and
adopted by the City Council of the City of Lodi in a regular
meeting held November 5, 1986 by the following vote:
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Ayes: Council Members - Hinchman, Olson, Pinkerton, Snider and
Reid (Mayor)
Noes: Council Members - None
Absent: Council Members - None
Alice M. Reimche
City Clerk
AN ORDINANCE OF THE IODI CITY COUNCIL
REPEALING ICDI MUNICIPAL CODE CHAPTER 5.16
CORK NITY ANTED TELEVISION SYSTEM FRANCfiISES
AND ENACTING A NEW CHAPTER 5.16 -
COMMLNITY CABLE TELEVISION SYSTEM FRANC[USES
SECTION 1. Chapter 5.16 - Community Antenna Television System Franchises, of
Title 5 of the Lodi Municipal Code is hereby repealed in its entirety, and a new
Chapter 5.16 - Cmumity Cable Television System Franchises is hereby enacted, as
follows:
5.16.010
5.16.020
5.16.030
5.16.040
5.16.050
Chapter 5.16
CONII+NNITY CABLE TELEVISION SYSTEM FRANCHISES
Definitions.
Franchise required.
Grant of Authority.
Application.
Grant or refusal.
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5.16.060
5.16.070
5.16.080
5.16.090
5.16.100
5.16.110
5.16.120
5.16.130
5.16.140
5.16.150
5.16.160
5.16.170
5.16.180
5.16.190
5.16.200
.16.210
5.16.220
5.16.230
5.16.240
5.16.250
5.16.260
5.16.270
5.16.280
5.16.290
5.16.300
5.16.310
5.16.320
Acceptance. _... ..
Conditions.
Duration/Renewal of franchise,
Payment.
Financial statement Audit—Minimum payment.
Rates for service.
Limitations.
Rights reserved by city.
Couplaint procedure.
Refunds.
Liquidated damages.
Commencement of construction and service.
Forfeiture and termination.
Security fund.
Construction bond.
Construction practices.
Removal or abandonment of facilities.
Changes required by public improvements.
Failure to canplete work.
Insurance.
Right of inspection --Plans and records.
Service standards.
Continuity of service mandatory.
Performance evaluation sessions.
New developments.
Filings with city.
Fiscal report.
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5.16.330
Refusal of service.
5.16.340
Service contract.
5.16.350
Television sale or repair.
5.16.360
Free service.
5.16.370
Moving of buildings.
5.16.380
Unauthorized connections—Tampering.
5.16.390
Transfers and assignments.
5.16.400
Access channels.
5.16.410
Waivers
5.16.420
Required services and facilities.
5.16.430
Construction and technical standards
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(j
5.16.010 Definitions.
For the purposes of this chapter, the following words and phrases shal]. have
the meanings respectively ascribed to them by this section:
a. "Access channel" shall mean a single channel dedicated in whole or in
part for local programming which is not originated by a cable company.
b. "Basic Service" shall mean any service tier which include the
retransmission of local television broadcast signals and Public, Educational and
Government Access Channels.
e. "Cable Services" are defined as the one-way transmission to subscribers
of video programming and other programming services together with subscriber
interaction, if any, which is required for the select --ion of such programming and
programming services that the cable operator makes available to all subscribers
generally. Examples of cable services include: video programming, pay-per-
view, voter preference polls in the context of a video program, teletexts, one-
way transmission of any computer software, and one-way videotex services such as
news services, stock markat information, etc. Non -cable services would
include: shop -at home, bank -at-home services, electronic mail, one-way and
two --way transmission of non -video data and information not offered to all
subscribers, data processing, video conferencing and voice communication.
d. "Cablecasting" is programming carried on a cable system, exclusive of
broadcast signals, whether originated by the cable operator or any other party.
e. "Cable System" shall mean a facility consisting of a set of closed
transmission paths and associated signal generation, reception, and control
equipment that is designed to provide cable service which includes video
programming and which is provided to multiple subscribers within a community, but
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such term does not include (A) a facility that serves only to retransmit the
television signals of one or more television broadcast stations; (B) a facility
that serves only subscribers in one or more multiple unit dwellings under ccmmn
ownership, control, or management, unless such facility or facilities uses any
public right-of-way; (C) a facility of a carman carrier which is subject in whole
or in part, to the provisions of Title II of the Commnications Act of 1984,
except that such facility shall be considered a cable system to the extent such
facility is used in the transmission of video programming directly to subscribers;
or (D) any facilities of any electric utility used solely for operating its
electric utility systems.
f. "Local Origination Programming" shall mean programming locally produced
by the Ccapany.
g. "Franchise" means any nonexclusive authority granted pursuant to this
chapter in terms of franchise or franchise renewal or otherwise to construct,
operate and maintain a cable system iu the incorporated area of the city. The
term "franchise" shall include the terns "franchise renewal" herein.
h. Franchise area" means all or any portions of the incorporated area of
the city for which a franchise has been granted under this chapter.
i. "Grantee" means the person to whan a franchise under this chapter is
granted by the council and any lawful successor or assignee of such a person.
j. "Gross annual receipts" means any and all canpensation or receipts
obtained from and as a result of the operation of a cable system by a grantee
within the franchised area; except that such term shall not include receipts or
canpensation for:
1. Installation, reconnection or any other nonrecurring charges;
2. The amount of any refunds, credits or other payments made to subscribers
or users;
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del
3. Any taxes on services furnished by the grantee imposed directly or
indirectly on any sabscriber or user by any municipal corporation, political
subdivision, state or other governmental unit and collected by the grantee for the
governmental unit; and
4. The sale or transfer of tangible property;
5. The sale or transfer of the franchise;
6. The issuance, sale or transfer of corporation stocks, bonds or other
securities; and
7. Loans or gifts to the grantee.
k. "Person" means any person, firm, association, organization, partnership,
business trust, joint venture, corporation or ccapany.
1. "Property of grantee" means any property constructed, installed,
operated or maintained by a grantee under the authority of a nonexclusive
franchise issued pursuant to this chapter.
M. "Street" means the surface of, and the space above and below, any public
street, road, highway, freeway, lane, alley, court, sidewalk, parkway, drive,
public utility easement or other public place as may be authorized by the council,
existing as such as of or after the effective date of the ordinance codified in
this chapter within the incorporated area of the city.
n. "Subscriber" means any person or entity receiving for any purpose the
cable service of a grantee.
5.16.020 Franchise required.
No person shall extend, operate or carry on the business of distributing to
any persons in this city any television signals or radio signals by means of a
cable system unless a franchise or renewal of franchise therefor has first been
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obtained pursuant to the provisions of this chapter, and unless such franchise or
renewal of franchise is in full force and effect. No person shall construct,
install or maintain within any street in the city or within any other public
property of the city or within any privately owned area within the city which has
not yet became a public street but is designated or delineated as a proposed
public street on any tentative subdivision map approved by the city, any equipment
or facilities for distributing any television signals or radio signals through a
cable system, unless a franchise .authorizing such use of such street or property
or area has first been obtained pursuant to the provisions of this chapter, and
unless such franchise is in full force and effect.
5.16.030 Grant of authority.
a. A nonexclusive franchise to construct, operate and maintain a cable
system within any franchise area may be granted by the council to any person,
whether operating under an existing franchise or not, offering to furnish and
provide a system pursuant to the teens and provisions of this chapter. No
provision of this chapter shall be construed as to require the granting of a
franchise when in the opinion of the council it is in the public interest to
restrict the number of grantees to one or more. Neither the granting of any
nonexclusive franchise under this chapter nor any of the provisions contained in
this chapter shall be construed to prevent the city from granting any identical,
or similar, nonexclusive franchise to any person within the city.
b. Successful applicants chosen by the City Council will be granted the
right and privilege to construct, erect, operate and maintain, in, upon, along,
across, above, over and under the streets, alleys, public ways and public places
now laid out or dedicated and all. 4xtensions thereof and additions thereto in the
City poles, wires, cables, undatVroxuid conduits, manholes, and other cable
conductors and fixtures necessary for the maintenance and operation in the City of
Lodi of a cable system to be used for the sale and distribution of cable services
to the residents of the City.
e. Any privilege claimed under any such franchise by the Grantee in any
street or other public property siiall be subordinate to any prior lawful occupancy
of the streets or other public propprty.
d. Insofar as it is not incC:g1sistent with or otherwise preempted by Federal
or State regulations, the City Muncil also grants the right and privilege to
successful Grantees to provide non -cable ccamrnw-iications services. The City
Council retains all authority, not otherwise preempted, to regulate non -cable
caummcations services to the ext@nt necessary to assure the delivery of proposed
non -cable services, if any, and that they are in conpliance with all regulatory
provisions of this ordinance.
e. Tht construction, maint@nance, and operation of Grantee's cable system
and all property of Grantee sub jQ@t to the provisions of this ordinance shall be
subject to all lawful police powarg, rules, and regulations of the City. The City -
shall have the power at any tines to order and require Grantee to remove or abate
any pole, line, taxer, wire, cable, guy, conduit, electric conductor, or any other
structure or facility that is dAngerous to life or property. In the event
Grantee, after written notice, ells or refuses to act, the City shall have the
power to remove or abate the gAnr at the expense of the Grantee, all without
compensation or liability for damages to Grantee.
5.16.040 Application.
A. An application for a franchise or franchise renewal under this chapter
shall be in writing and acccmpanied by a payment to the city in an amount to be
established and amended frcm time to time by resolution of the City Council. An
application shall contain ow- following information:
1. The name and address of the applicant. If the applicant is a
partnership, the name and address of each partner shall be set forth. If the
applicant is a corporation, the application shall state the names and addresses
of its directors, main officers, major stockholders and associates, and the names
and addresses of parent and subsidiary companies;
2. A description of the manner in which the applicant proposes to
construct, install, maintain and operate the cable system and the extent and
manner in which existing or future poles or other public utilities will be used
for the system;
3. A detailed description of the proposed plan of operation of the
applicant which shall include, but not be limited to the following:
a) A detailed map indicating all areas to be served, how they are to be
served and a proposed time schedule for the installation of all equipment
necessary to become 100 percent operational, throughout the entire area to
be served;
b) A detailed, informative, and referenced statement describing the
actual equipment and the operational and technical standards proposed by the
applicants.
4. A statement of the estimated costs of the installation of the proposed
system described in paragraphs 2 and 3 of this subsection.
M
a
5. All applicants are required to clearly delineate the initial service
area being prcposad on a map of sufficient detail (see No. 3 above). Said map
shall also indicate any and all areas that will not receive services.
6. All applicants shall agree to extend cable system upon requestof any
contiguous area not designated for initial service in the plan when potential
subscribers can be served by extension of the cable system past dwelling units
equivalent to a density of forty ,(40) hares per mile of street. Extension shall
be at Grantee's cost. If undergrounding is required by regulation, Grantee must
make installation at Grantee's expense. where aerial. extension is allowed by
regulation but underground installation is requested by benefitted subscribers,
the cost of undergrounding that exceeds the estimated aerial extension cost may
be charged to benefitted subscribers.
7. A statement or schedule in a form approved by the city manager of
proposed rates and charges to subscribers for installation and services, and a
copy of the proposed service agreement between the grantee and its subscribers
shall accaipany the application;
8. A statement setting forth all agreements and understandings, whether
written, oral or implied existing between the applicant and any person who is a
party in interest with respect to the proposed franchise or the proposed cable
operation. If a franchise is granted to a person posing as a front or as the
representative of another person, and such information is not disclosed in the
original application, such franchise is void and of no force and effect;
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9. A financial statement prepared by a certified publdc accountant or
public accountant satisfactory to the council, demonstrating applicant's financial
status and its financial ability to complete the construction or reconstruction,
installation, and operation of the proposed system.
10. An original application for a franchise shall include a detailed
financial plan (pro forma) describing for each year of the franchise, pro;ected
number of subscribers, rates, all revenues, operating expenses, capital
expenditures, depreciation schedule, income statements and a sources and uses of
funds statement. All information is to be presented in the format to be
prescribed by the city.
B. The council may at any time demand, and applicant shall then provide,
such supplementary, additional or other information as the council deems
reasonably necessary to determine whether the requested franchise should be
granted.
5.16.050 Grant or refusal.
Upon consideration of any application, the council may refuse to grant the
requested franchise or the council may by resolution grant a franchise for a cable
system to any applicant as may appear from its application to be in the opinion of
the council best qualified to render good and efficient cable service to
subscribers in the proposed franchise area. The application submitted, together
with any amendments, and this chapter shall. constitute and form part of the
franchise if granted.
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5.16.060 Acceptance.
within thirty days after the date of a resolution awarding a franchise, o--
within
rwithin such extended period of time as the council may authorize, the grantee
shall file with the city manager his written acceptance in forms satisfactory to
the city attorney, of the franchise, together with the required bond and insurance
policies, and his agreement to be bound.by and to comply with and to do all things
required of him by the provisions of this chapter and the franchise. Such
acceptance and agreement shall be acknowledged by the grantee before a notary
public and shall be in form and content satisfactory to, and approved by, the city
attorney.
5.16.070 Conditions..
A. Any franchise granted pursuant to this chapter shall include, among
other things, the following condition:
The cable system herein franchised shall be used and operated solely and
exclusively for the purpose expressly authorized by Ordinance of the City of
Lodi and no other purpose whatsoever.
B. Inclusion of the statement set out in subsection A of this section in
any such franchise does not limit the authority of the city to include any other
reasonable condition, limitation or restriction which it deems necessary to impose
in connection with a franchise granted pursuant to the authority conferred by this
chapter.
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5.16.080 Duration/Renewal of franchise.
A. The duration of the rights, privileges and authorizations granted in a
franchise agreement shall be not to exceed twenty years from the date a franchise
is awarded. A franchise may be renewed by the City upon application of the
Grantee pursuant to the procedure established in sub -section b of this section
and in accordance with the then applicable law.
B. Renewal.
(1) During the six-imnth period which begins with the 36th month
before the Franchise expiration, the City may on its own initiative, and
shall at the request of the Grantee, cam ence proceedings which afford the
public appropriate notice and participation for the purpose of:
(a) Identifying the future cable -related cczmiLmity needs and interests;
and
(b) Reviewing the performance of the Grantee under the franchise during
the then current franchise term.
(2)
(a) Upon completion of a proceeding under subsection (1), the Grantee
seeking renewal of a franchise may, on its own initiative or at the
request of the City, submit a proposal for renewal.
(b) Any such proposal shall contain such material as the City may
require, including proposals for an upgrade of the cable system.
(c) The City may establish a date by which such proposal shall be
submitted.
(3)
(a) Upon submittal by the Grantee of a proposal to the City for the
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renewal of the franchise, the City shall provide public notice of
such proposal and, during the 4 -month period which begins on the
completion of any proceedings under subsection (1), renew the
franchise or, issue a preliminary assessment that the franchise
should not be renewed and, at the request of the Grantee or on its
own initiative, commence an actmmi dstrative proceeding, after
providing prompt public notice of such proceeding, in accordance
w'th paragraph (3)(b) to consider whether—
(i) the Grantee has substantially complied with the material terms
of the existing franchise and with applicable law;
(ii) the quality of the Grantee's service, including signal
quality, response to consumer ccuplaints, and billing
practices, but without regard to the mix, quality, or
level of cable services or other services provided over the
system, has been reasonable in light of community needs;
(iii) the Grantee has the financial, legal, and technical ability
to provide the services, facilities, and equipment as set forth in
the Grantee's proposal; and
(iv) the Grantee's proposal is reasonable to meet the future
cable -related comm=uty needs and interests, taking into account
the cost of meeting such needs and interests.
(b) In any proceeding under paragraph (3)(a), the Grantee shall be
afforded notice and the Grantee and the City, or its designee, shall
be afforded fair opportunity for full participation, including the
right to introduce evidence (including evidence related to issues
raised in the proceeding under subsection (1)) to require the
production of evidence and to question witnesses. A transcript
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shall be made of any such proceeding.
(c) At the completion of a proceeding under this subsection, the City
shall issue a written decision granting or denying the proposal for
renewal based upon the record of such proceeding, and transmit a copy
of such decision to the Grantee. Such decision shall state the
reasons therefor.
(4) Any denial of a proposal for renewal shall be based on one or more
adverse findings made with respect to the factors described in
subparagraphs (i) through (iv) of subsection (3)(a), pursuant to the
record of the proceeding under subsection (3).
(5) If the Grantee's proposal for renewal has been denied by a final
decision of the City made pursuant to this section, or has been adversely
affected by a failure of the City to act in accordance with the procedural
requirements of this section, the Grantee may appeal such final decision
or failure pursuant to the provisions of section 635 of the Federal Cable
QrManicati.ons Policy Act of 1984.
(6) Notwithstanding the provisions of subsections (1) through (5) of this
section, the Grantee may submit a proposal for the renewal of the
franchise pursuant to this subsection at any time, and the City may, after
affording the public adequate notice and opportunity for cc mnent, grant or
deny such proposal at any tine (including after proceedings pursuant to
this section have ccmnenced). The provisions of subsections (1) through
(5) of this section shall not apply to a decision to grant or deny a
proposal under this subsection. The denial of a renewal pursuant to this
subsection shall not affect action on a renewal proposal that is submitted
in accordance with subsections (1) through (5).
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5.16.090 Payment.
Any grantee granted a franchise under this chapter shall pay to the city,
during the life of such franchise, a sum equal to three percent of t` annual
gross receipts of the grantee, payable quarterly.
5.16.100 Financial statement—Audit—Minim= paymieit.
A. The grantee shall file, with the council within ninety days after the
expiration of any fiscal year or portion thereof during which a franchise is in
force, a financial statement prepared by a certified public accountant or public
accountant showing in detail gross annual receipts, as defined in this chapter, of
the grantee during the preceding calendar year or portion thereof. It shall be
the duty of the grantee to pay to the city within fifteen days after the time for
filing such statements the sum prescribed by the franchise, or any unpaid balance
thereof, for the calendar year or the portion thereof covered by the statement.
B. The right is reserved to the city of audit and reccuputation of any and
all amounts paid under this chapter and acceptance until expiration of a period of
five years following payment shall not be construed as a release or as an accord
and satisfaction of any clam the city may have for further or additional sums
payable under this chapter or for the performance of any other obligations under
this chapter.
C. In any year, commencing with the first full calendar year of service
during which the franchise payments amount to less than twelve hundred dollars,
the grantee shall pay to the city for such a year a minimum total amount of twelve
hundred dollars.
D. in the event of any holding over after expiration or any other
termination of a franchise issued under this chapter, whether with or without the
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consent of the city, the grantee shall pay to city a ccupensation twice the
percent of its gross annual receipts during such period as it would be required to
pay under its franchise if there were no holding over.
5.16.110 Rates for service.
The grantee shall file with the city council a true and correct schedule of
rates to be charged for installation and connection to its cable system and a
monthly charge for cable service. Such rates shall not be changed or modified in
any manner without first filing the changed or modified rates with the city
council thirty days prior to the effective date of such change or modification.
The City Council shall have the authority to regulate the rates to the
extent the Council is permitted to by Federal, State or local law.
5.16.120 Limitations.
A. Any franchise granted under this chapter shall be nonexclusive.
B. No privilege or exemption shall be authorized or conferred by any
franchise granted under this chapter except those specifically prescribed in this
chapter.
C. Any privilege claimed under a franchise by the grantee in any street, or
other public property, shall be subordinate to any prior occupancy thereof for
public purposes.
D. A franchise granted under this chapter shall be a privilege to be held
in personal trust by the original grantee.
It cannot
be sold,
transferred,
leased, assigned or disposed of, in whole
or in part,
either
by forced or
involuntary sale, sale, merger, consolidation
or otherwise,
without
prior consent
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of the council expressed in writing. The grantee shall file with the council
within thirty days prior to sale, transfer, assignment or lease of the franc'-dse
or any part thereof or any rights or privileges granted thereby, written evidence
of the proposed transaction certified to by the grantee or its duly authorized
officers. Any proposed assignee must show financial responsibility to carry out
the terms of the franchise and ;mst agree to ccrply with all of the provisions of
this chapter; and provided further, that no consent or approval shall be required
for a transfer in trust, by mortgage, by security agreement, or by other
hypothecation as a whole, to secure an indebtedness, or for a transfer required by
operation of law.
E. Any right or power in, or duty impressed upon any officer, employee,
department or board of the city shall be subject to transfer by the council or by
law to any other officer, employee, department or board of the city.
F. The grantee shall have no recourse whatsoever against the city for any
loss, cost, expense or damage, arising out of any provisions or requirements of
this chapter or its enforcement.
G. Any franchise granted under this chapter shall not relieve the grantee
of any obligation involved in obtaining pole space from any department or division
of the city, other agency of government, utility carpany, or from others
maintaining poles in streets; provided, that the latter shall cooperate with the
grantee to the end that only one set of poles shall be required by all.
H. Any franchise granted under this chapter is in lieu of any and all other
rights, privileges, powers, immunities and authorities owned, possessed,
controlled or exercisable by the grantee, or any successor to any interest of the
grantee, of or pertaining to the construction, operation or maintenance of any
cable system in the incorporated limits of the city, and the acceptance of a
franchise under this chapter shall operate as between grantee and the city, as an
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5.16.130 Rights reserved by city.
A. Nothing in this chapter shall in any way or to any extent impair or
affect the right of the city to acquire the grantee's property either by purchase
or through exercise of the right of eminent domain, and nothing in this chapter
shall be construed to contract away or to modify or abridge the city's right of
eminent domain in respect to any grantee.
B. No franchise granted under this chapter shall oe given any value before
any court or other public authority in any action or proceeding brought by the
city in excess of the amount of the required filing fee and any other sum paid by
the grantee to city for a franchise at the time of granting.
C. There is reserved to the city every right and power which is required to
be reserved or provided in this chapter by any ordinance or resolution of the
city, and the grantee, by its acceptance of any franchise, agrees to be bound
thereby and to comply with any action or requirements of the city in its exercise
of such rights or power, enacted or established before or after the effective date
of the ordinance codified in this chapter.
D. The council may do all things which are necessary .nd convenient in the
exercise of its jurisdiction under this chapter.
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abandonment of any and all
of such rights, privileges,
powers, immunities and
authorities within the city,
to the effect that, as between the grantee and the
city, any and
all construction, operation and maintenance by any grantee of any
cable system
in the city shall be, and shall be deemed
and construed in all
instances and
respects to be,
under and pursuant to such
franchise, and not under
or pursuant
to any other
right, privilege, power,
immunity or authority
whatsoever.
5.16.130 Rights reserved by city.
A. Nothing in this chapter shall in any way or to any extent impair or
affect the right of the city to acquire the grantee's property either by purchase
or through exercise of the right of eminent domain, and nothing in this chapter
shall be construed to contract away or to modify or abridge the city's right of
eminent domain in respect to any grantee.
B. No franchise granted under this chapter shall oe given any value before
any court or other public authority in any action or proceeding brought by the
city in excess of the amount of the required filing fee and any other sum paid by
the grantee to city for a franchise at the time of granting.
C. There is reserved to the city every right and power which is required to
be reserved or provided in this chapter by any ordinance or resolution of the
city, and the grantee, by its acceptance of any franchise, agrees to be bound
thereby and to comply with any action or requirements of the city in its exercise
of such rights or power, enacted or established before or after the effective date
of the ordinance codified in this chapter.
D. The council may do all things which are necessary .nd convenient in the
exercise of its jurisdiction under this chapter.
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�r
E. Neither the granting of any franchise under this chapter nor any of the
provisions contained in this chapter shall be construed to prevent the city frau
granting any identical, or similar, franchise to any other person within all or
any portion of the city.
F. There is reserved to city the right to amend any section or part of this
chapter so as to require reasonable additional or greater standards of
construction, operation, maintenance or otherwise, on the part of the grantee for
purposes of protecting the public health, safety and welfare. This provision
shall not apply to eamtitments of a contractual nature made in a franchise
agreement or franchise renewal agreements.
G. Neither the granting of any franchise nor any provision in this chapter
shall constitute a bar to the exercise of any govermental right or power of city.
H. All facilities of any grantee licensed under this chapter within the
city shall be available for civil defense purposes at such times as the city
director of civil defense shall require.
5.16.140 Caplaint procedure.
A. The city manager or the city manager's designee is specified by the
City as having primary responsibility for the continuing administration of a
franchise and implementation of complaint procedu.-es.
B. A Grantee shall maintain a central office within or in close proximity
to the City, which shall be open during all usual business hours, have a publicly -
listed telephone with a toll-free number and sufficient lines; and be so
operated that complaints and requests for repairs, billing or adjustments shall be
received on a twenty-four (24) hour basis.
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C. A Grantee shall maintain a repair and maintenance crew which shall
respond to subscriber complaints or requests for service within twenty-four (24)
hours after receipt of the camplaint or request. No charge shall be made to the
subscriber for this service unless such maintenance or repair is required as a
result of damage caused by subscriber.
D. A Grantee shall establish procedures for receiving, acting upon, and
resolving subscriber conplaints to the satisfaction of the city manager's office.
A Grantee shall furnish a notice of such procedures to each subscriber a, the time
of initial subscription to the system and annually thereafter.
Grantee's service call procedures shall contain provisions to protect the
interests of subscribers. In the event that the Grantee or its enployee
determines that Grantee's cable system is not responsible for any given problem
which has resulted in a service call (i.e., subscriber equipment is at fault), the
subscriber shall have the right to have this contention demonstrated through the
use of an additional television receiver cca parison. A standard television
receiver will be used iii the subscriber's home to allow a direct A/B comparison of
performance.
E. A Grantee shall keep a maintenance service log which will indicate the
nature of each service complaint, the date and time it was received, the
disposition of said complaint and the time and date thereof . 'This log shall be
made available for periodic inspection by representatives of the city manager.
All service complaint entries shall be retained on file for a period consisting of
the most recent three (3) years.
F. When there have been similar complaints made or when there exists other
evidence, which, in the judgment of the city manager casts doubt on the
reliability or quality of cable service, the city manager shall have the right and
authority to ccnpel a Grantee to test, analyze, and report on the performance of
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the system. Such report shall be delivered to the city manager no later than
fourteen (14) days after the city manager formally notifies the Grantee and shall
include the following information: the nature of the complaints which
precipitated the special tests; what system cmrponents were tested, the equigw-nt
used, and procedures employed in said testing; the results of such tests; and the
method in which said complaints were resolved.
G. The city manager may require that tests and analyses shall be supervised
by a professional engineer not on.the permanent staff of a Grantee. The aforesaid
engineer should sign all records of the special tests and forward to the city
manager such records with a report interpreting the results of the tests and
reeding actions to be taken by a Grantee and the City.
H. The City's right under this section shall be limited to requiring tests,
analyses, and reports covering specific subjects and characteristics based on said
cxxrplaints or other evidence when and under such circumstances as the City has
reasonable grounds to believe that the complaints or other evidence requires that
tests be performed to protect the public against substandard cable service.
I. The city manager is authorized and empowered to adjust, settle or
cxtprcmise any controversy or charge arising from the operations of any grantee
under this chapter, either on behalf of the city, the grantee or any subscriber in
the best interest of the public.
J. Either the grantee or any member of the public who may be dissatisfied
with the decision of the city manager way appeal the matter to the council for
hearing and determination.
K. The council may accept, reject or modify the decision of the city
manager and the council may adjust, settle or compromise any controversy or cancel
any charge arising from the operations of any grantee or from any provision of
this chapter:.
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5.16.150 Refunds.
a. Subscribers not satisfied that services have been provided a-i outlined
in this ordinance and the Franchise Agreement shall be encouraged to ;otify the
System Manager. The Grantee shall work with the subscriber to resolve the problem
within 48 hours, and upon request by a. subscriber, the Grantee shall credit the
subscriber's account on a pro rata basis for loss of service ccmnencing 48 hours
after notification of the Grantee.
b. A grantee shall at the time of initial subscription to the system and
annually thereafter furnish a notice to subscribers of their right to a refund
for any loss or interruption of service for 48 hours or more.
5.16.160 Liquidated damages.
By acceptance of the franchise granted by the City,. a Grantee understands
and shall agree that failure to ccaply %-Lth any time and performanc- requirements
as stipulated in this ordinance and franchise agreement will result in damage to
the City, and that it is and will be impracticable to determine the actual amount
of such damage in the event of delay or non-performance; the franchi ,e agreement
shall include provisions for liquidated damages to be paid by the Grantee in
amounts set forth in the franchise agreement and chargeable to the security fund
for the following concerns:
a. Failure to cmplete system construction or reconstruction in accordance
with Section 5.16.170 and Section 5.16.430 unless the Council specifically
approves the delay by motion or resolution, due to the occurrence of conditions
beyond Grantee's control, a Grantee shall pay five hundred dollars ($500.00) per
day for each day or part thereof, the deficiency continues.
' t
b. Failure to provide upon written request, data, dog ae.nts, reports,
information or t^ cooperate with City during an application process or cable
system review, a Grantee shall pay fifty dollars ($50.00) per day for each day or
part thereof, the violation occurs or continues.
C. Failure to test, analyze and report on the performance of the system
following a written request pursuant to this ordinance, a Grantee shall pay to
City one hundred dollars ($100.00) per day for each day or part thereof, that such
noncmTpliance continues.
d. For failure to provide in a continuing manner the broad categories of
services proposed in the accepted application unless the Council specifically
approves Grantee a delay or change, or the Grantee has obtained modification of
its obligation under Section 625 of the Cable Communications policy Act of 1984;
Grantee stall pay to the City five hundred dollars ($500.00) per day for each day
or part :- ,,a'eof that each noncompliance continues.
e. Forty-five (45) days folluwing adoption of a resolution by the City
Council in accordance with Section 5.16.270 determining a failure of Grantee to
comply with operational, maintenance or technical standards, Grantee shall pay to
the City five hundred dollars ($500.00) for each day or part thereof, that such
non --compliance continues.
f. Any other action or non -action by the Grantee as agreed upon between
the City and Grantee and set forth in the franchise agreement. Nothing in this
section shall preclude further liquidated damages as agreed upon by the parties in
the franchise agreement.
5.16.170 Ccamencement of construction and service.
A. Construction Plan and Schedule
(1) Map and Plan
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Grantee shall submit a construction plan or reconstruction plar. which shall
be incorporated by reference and made a part of the franchise agreement. - -The plan -
shall consist of a map of the entire franchise area and shall clearly delineate
the following:
(a) The areas within the franchise area where the cable system will be
initially available to subscriber including a schedule of construction for
each year that construction or reconstruction is proposed.
(b) Areas within the franchise area where extension of the cable system
cannot reasonably be done due to lack of present or planned developrent or
other similar reasons, with the areas and the reasons for not serving them
clearly identified on the map.
4
B. Upon acceptance of any franchise, the grantee shall immediately initiate
action to obtain all permits, licenses, easements, variances and any other
authorizations which are required or necessary in the conduct of its business,
including but not limited to any utility joint use attachment agreements,
microwave carrier licenses, any authorizations required to import distant signals,
and any other permits, licenses and authorizations to he granted by duly
constituted regulatory agencies having or asserting jurisdiction over the
operation of the cable system, any associated microwave transmission facilities,
YF
or any other associated facility, and the grantee shall proceed with due diligence
until all such matters are obtained.
Copies of all petitions, applications and communications submit'_. -d t- the
grantee to the Federal Corn.-,aiicati.ons Commission or any other feder"? state
regulatory commission or agency having jurisdiction in respect to any matters
affecting cable operations authorized pursuant to its franchise, shall also be
submitted simultaneously to the city by the grantee.
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C. Within ninety days Rfter obtaining all the required or necessary
permits, licenses, easements, variances and any other authorizations referred to
in subsection A of this section, the grantee shall commence construction and
installation of the cable system.
D. Within six months after building permits are granted for a particular
area, the grantee shall proceed to render initial services to subscribers, and the
ocmpletion of construction and installation shall be pursued with reasonable
diligence, not to exceed fifteen months from the date of the granting of the
building permits for the particular area to be served.
E. Failure to do any of the requirements rements o€ subsections A, B, C and D of
this section within the time specified except as provided in subsection F of this
section shall be grounds for termination of the franchise.
F. The council may in its discretion extend the time for the grantee,
acting in good faith, to do any act required under this section. The time for
commencement of construction and installation, or the rendering of service to
subscribers, initially or thereafter, shall be extended or excused, as the case
may be, for any period during which the grantee experiences delay or interruptions
due to any of the following circumstances if reasonably beyond its control:
necessary utility changes or rearrangements, governmental or regulatory
restrictions or requirements, labor strikes, lockouts, war (declared or
undeclared), national emergency, fire, earthquake, the elements and acts of God.
G. Grantee shall extend cable system upon request of any contiguous area not
designated for initial service in the plan when potential subscribers can be
served by extension of the cable system past dwelling units equivalent to a
density of forty (40) hcmes per mile of street. Extension stall be at Grantee's
cost. If undergrounding is required by regulation, Grantee must make
installation at Grantee's expense. Where aerial extension is allowed by
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regulation but underground installation is requested by benefitted subscribers,
the cost of undergrounding that exceeds the estimated aerial extension cost may be
charged to benefitted subscribers.
5.16.180 Forfeiture and termination.
a. In addition to all other rights and powers retained by the City under
this ordinance or otherwise, the City reserves the right to forfeit and terminate
a franchise and all rights and privileges of a Grantee in the event of a material
breach of its terms and conditions. In interpreting this ordinance, material
provisions shall include all labeled as such and all others, which, under, all the
facts and circumstances indicated, are a significant Provision of the franchise
agreement. A material breach by Grantee shall include but shall not be limited to
the following:
(1) Failure to begin or eccplete system construction, reconstruction or
system extension, or system improvement as provided under the franchise;
(2) Failure to provide the broad categories of services promised; assuming
Grantee has unsuccessfully pursued whatever recourse is available under Section
625 of the Cable Cmmunications Policy Act of 1984;
(3) Failure to restore service after ninety-six (96) consecutive hours of
interrupted service, e:.eept when approval of such interruption is obtained frau
the City; or
(4) Material misrepresentation of fact in the application for or
negotiation of the franchise.
b. The foregoing shall not constitute a .;iaterial breach if the violation
occurs but it is without fault of a Grantee or occurs as a result of circumstances
beyond its control. Grantee shall not be excused by mere economic hardship nor
-27-
by misfeasance or malfeasance of its shareholders, directors, officers, or
employees.
c. The City may make a written demand that a Grantee amply with any such _
provision, rules, order, or determination under or pursuant to this ordinance and
franchise agreement. If the violation by the Grantee continues for a period of
thircy (30) days following such written demand without written proof that the
corrective action has been taken or is being actively and expeditiously pursued,
the City may place the issue of termination of a franchise before the City
Council. The City shall cause to be served upon Grantee at least twenty (20) days
prior to the date of such a Council meeting, a written notice of intent to request
-- -zh termination and the time and place of the meeting. Public notice shall be
y`vcm of the meeting and issue which the Council is to consider.
d. The City Council shall hear and consider the issue and shall hear any
person interested therein, and shall determine in its discretion, whether or not
any violation by the Grantee has occurred.
e. If the City Council shall determine the violation by a Grantee was the
fault of Grantee and within its control, the Council may by resolution declare
that the franchise of the Grantee shall be forfeited and terminated unless there
is ccupliance within such period as the City. Council may fix, such period not to
be less than sixty (60) days, provided no opportunity for ccupliance need be
granted for fraud or misrepresentation.
f. The issue of forfeiture and termination shall automatically be placed
upon the Council agenda at the expiration of the time set by it for compliance.
The Council then may terminate a franchise forthwith upon finding that Grantee
has failed to achieve coupliance or may furthe_• extend the period in its
discretion.
IME
5.16.190 Security Fund.
a. Within thirty (30) days after the award or renewal of a franchise, a
Grantee shall deposit with the City a corporate surety bond in the amount of
$50,OGJ. The bond shall, be used to insure the faithful performance by a Grantee
of all provisions of this ordinance and resulting franchise agreement; and
compliance with all orders, permits and directions of any agency, coTnission,
board, department, division or office of the City having jurisdiction over its
acts or defaults under a franchise and the payment by the Grantee of any penalties
liquidated damages, claims, liens and taxes due the City which arise by reason of
the construction, operation or maintenance of the system, including cost of
removal or abandonment of any property of Grantee.
b. The corporate surety bond shall be maintained at $50,000 during the
entire term of a franchise, even if amounts have to be withdrawn pursuant to
subdivision a. or c. of this section. The Grantee shall keep the same in force
and effect at all tines throughout the existence of the franchise and thereafter
until Grantee has liquidated all of its obligations with the City that may have
arisen from the acceptance of the franchise ordinance by Grantee or from the
exercise of any right or privilege granted hereunder, including the removal of all
poles, wires, cables, underground conduits, manholes, and other conductors and
fixtures incident to the maintenance and operation of its cablesystem, should
such removal be required by City Council or undertaken by Grantee upon the
termination of the franchise.
c. If a Grantee fails to pay to the City any compensation within the time
fixed herein; or fails after ten (10) days' notice to pay to the City any taxes
due and unpaid; or fails to repay the city within ten (10) days any damages, costs
or expenses which the City is compelled to pay by reason of any act or default of
l
the Grantee in connection with a franchise; or fails after ten (10) days' notice
by the City of such failure to ccarply with any provision of a franchise which the
City reasonably determines can be remedied by demand on the corporate surety bond.
The City may im wdiately require payment of the amount thereof with interest and
any penalties from the corporate surety bond.
d. The rights reserved to. the City with respect to the corporate surety
bond are in addition to all other rights of the City whether reserved by a
franchise ozauthorized by law, and no action, proceeding or exercise of a right
with respect to such corporate surety bond shall affect any other right the City
may have.
5.16.200 Construction bond.
a. Within thirty (30) days after the award or renewal of a franchise, a
Grantee shall obtain and maintain at its cost and expense, and file with the City
Clerk, a corporate surety bond in a company authorized to do business in the State
of California and found acceptable by the City Attorney, in the amount of five
hundred thousand dollars ($500,000) to guarantee the timely construction, rebuild
or reconstruction and full activation of the cable system and the safeguarding of
damage to private property and restoration of damages incurred with utilities.
The bond shall provide but not be limited to the following condition: There
shall be recoverable by the City, jointly and severally from the principal and
surety, any and all damages, loss or costs suffered by the City resulting from the
failure of a Grantee to satisfactorily ccrnplete construction, rebuild, or
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reconstruction and fully activate the cable system throughout the franchise area
pursuant to the terms and conditions of this ordinance and the.franchise agreement.
b. Any extension to the prescribed construction tine limit must be
authorized by the Council. Such extension shall be authorized only when the
Council finds that such extension is necessary and appropriate dtae to causes
beyond the control of a Grantee.
C. The construction bond shall be terminated only after the Council finds
that a Grantee has satisfactorily completed initial construction and activation or
reconstruction of the cable system pursuant to the terms and conditions of this
ordinance and the franchise agreement.
d. The rights reserved to the City with respect to the construction bond
are in addition to all other rights of the City, whether reserved by this
ordinance or authorized by law, and no action, proceeding or exercise of a right
with respect to such construction bond shall affect any other rights the City may
have.
e. The construction bond shall contain the following endorsement:
"It hereby understood and agreed that this bond may not be cancelled by
the surety nor the intention not to renew be stated by the surety until
sixty (60) days after receipt by the City, by registered mail, of written
notice Of such intent to cancel or not to renew."
5.16.210 Construction practices.
A. Any poles, cable lines, wires, conduits or other properties of the
grantee shall be constructed or installed in streets in accordance with good
engineering practice at such locations and in such manner as is approved by the
director of public works and shall conform to all applicable codes and laws.
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B. The grantee shall not install or erect any facilities or apparatus in or
on other public property, places or rights-of-way, or within any privately -owned
area within the city which has not yet became a public street but is designated or
delineated as a proposed public street on any tentative subdivision map approved
by the city, except those installed or erected upon existing or future public
utility facilities, without obtaining the prior written approval of the director
of public works and the owner -subdivider.
C. In those areas and portions of the city where the transmission and
distribution facilities of both the public utility providing telephone service and
those of the utility providing electric service have been or are to be placed
underground, then the grantee, upon written request by the director of public
works so to do, shall likewise initially construct, install, operate and maintain
its transmission and distribution facilities underground. For the purposes of
this subsection, "underground" includes a partial underground system. Amplifiers
in the grantee's transmission and distribution lines may be in appropriate
housings as approved by the director of public works. The city shall not in any
manner be responsible for any costs incurred by any grantee in placing his
property underground.
5.16.220 Removal or abandonment of facilities.
A. In the event that the use of any part of the cable system is
discontinued for any reason for a continuous period of six months, or in the event
such system or property has been installed in any street or public place without
ootmplying with the requirements of this chapter, or the franchise has been
terminated, cancelled or has expired, the grantee shall promptly, upon being given
ten days' written notice, remove from the streets or public places all such
property and poles of such system other than any which the director of public
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works may permit to be abandoned in place. , In tie event of such removal, the
grantee shall promptly restore the street or other area from which such property
has been removed to a condition satisfactory to the director of public works.
B. Any property of the grantee remaining in place sixty days after the
termination, forfeiture or expiration of the franchise shall be considered
permanently abandoned. The director of public works may extend such time.
C. Any property of the grantee to be abandoned in place shall be abandoned
in such a manner as the director of public works prescribes. Subject to the
provisions of any joint use attachment agreement, upon permanent abandonment of
the property of the grantee in place, the property shall become that of the city
and the grantee shall sutmit to the director of public works an instrument in
writing, to be approved by the city attorney, transferring to the city the
ownership of such property.
5.16.230 Changes required by public improvements.
The grantee shall, at its expense, protect, support, temporarily disconnect,
relocate in the same street or other public place, or remove from the street or
other public place, any property of the grantee when required by the director of
public works by reason of traffic conditions, public safety, street vacation,
freeway and street construction, change or establishment of street grade,
installation of sewers, drains, water pipes, power lines, signal lines and tracks
or any other type of structures or improvements by public agencies; provided,
however, that the grantee shall in all such cases have the privilege and be
subject to the obligations to abandon any property of the grantee in place, as
provided in this chapter.
�t
l
Upon failure of the grantee to ccnu ence, pursue or ccoplete any work
required by law or by the provisions of this chapter or by its franchise to be
done in any street or other public place, within the time prescribed, and to the
satisfaction of the director of public works, the director of public works may, at
his option, cause such work to be done and the grantee shall pay to the city the
cost thereof in the itemized amounts reported by the director of public works to
the grantee within thirty days after receipt of such itemized report.
5.16.250 Insurance.
A. The grantee shall indemnify the city, its officers and its employees
against all claims, demands, actions, suits and proceedings by others, against all
liability to others, and against any loss, cost and expense resulting therefrom,
including reasonable attorneys' fees, arising out of the exercise and enjoyment of
its franchise irrespective of the amount of the cceprehensive liability insurance
policy required under this section.
B. The grantee shall at all times during the existence of any franchise
issued under this chapter maintain in full force and effect, at its own cost and
expense, a general ccaprehensive liability insurance policy, in protection of the
city, its officers, boards, commissions, agents and employees, in a ccapany
approved by the city attorney and in a form satisfactory to the city attorney,
protecting the city and all persons against liability for loss or damage for
personal injury, death and property damage, occasioned by the operations of the
grantee under such a franchise, and for property damage, provided that the maxiiman
amount for which liability shall be assumed, and requirements for the City of Lodi
being named an additional insured, and any other insurance requirements shall be
as set and required frau time to time by resolution of the City Council. A copy
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of such policy or policies, or certificates of insurance showing the existence of
such insurance coverage,. shall be filed by the grantee with the City Cierk.
C. The policies mentioned in the subsection B of this section shall name
the city, its officers, boards, caRmissions, agents and employees, as additional
insureds, shall contain a contractual liability endorsement approved by the city
attorney and shall contain a provision.that a written notice of any cancellation
or reduction in coverage of such policies shall be delivered to the city manager
thirty days in advance of the effective date of the cancellation or reduction.
5.16.260 Right of inspection --Plans and records. A. At all reasorablc tints,
the grantee shall permit any duly authorized representative of the city to examine
all property of the grantee, together with any appurtenant property -f the grantee
situated within or without the city, and to examine and transcribe any and all
maps and other records kept or maintained by the grantee or under its control
which deal with the operations, affairs, transactions or property of the grantee
in relation to its franchise. If any maps or records are not kept in the city,
and upon reasonable request they are not made available in the city, and if the
council determines that an examination of them is necessary or appropriate, then
all travel and maintenance expense necessarily incurred in making such examination
shall be paid by the grantee.
B. The grantee shall prepare and fur-ush to the director of public works
and the city manager at the titres and in the form prescribed by either of such
officers, such reports with respect to its operations, affairs, transactions or
property, as may be reasonable, necessary or appropriate to the performance of any
of the rights, functions or duties of the city or any of its officers in
connection with the franchise.
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C. The grantee shall at all times make and keep in the city full and
complete plans and records showing the exact location of al' cable system
equipment installed or in use in streets and other public places in the city.
D. Men any portion of the cable system is to be installed on public
utility poles and facilities, certifi-,d copies of the agreements for such joint
use of poles and facilities shall be filed with the director of public works.
5.16.270 Service standards.
a. A Grantee shall put, keep, and maintain all parts of the system in good
condition throughout the entire franchise period.
JD. Upon termination of service to any subscriber, a Grantee shall promptly
remove all its facilities and equipment from the premises of such subscriker upon
subscriber's request, unless said service serves multiple users.
C. Grantee shall render efficient service, maks repairs promptly, and
interrupt service only for good cause and for the shortest time possible. Such
interruptions, insofar as possible, shall be preceded by notice and shall occur
during periods of minimum system use.
d. Grantee shall not allow its cable or other operations to interfere with
television reception of persons not served by Grantee, nor shall the system
interfere with, obstruct or hinder in any manner, the operation of the various
Utilities serving the residents of the City.
e. A Grantee shall continue through the term of the franchise to maintain
the technical, operational, and maintenance standards and quality of service set
forth in this ordinance and franchise agreement. Should the City find, by
resolution, that a Grantee has failed to maintain these standards and duality of
service, and should it, by resolution specifically enu orate improvements to be
-36-
Made, a Grartee shall maketiu��1 1I.�)rC',v(1TV-n 1s. Yailur (_ to in tke so, --h 1.Vg1%r-ove'z'ki .tS
Within forty-five (45) &-iys of such resolution will const.ltute a T?k?teri,A hrt a�-h-
of condition for which the reTitiay of Section 5.16.160 is applicable. (Liquid'at.xi
Damages.)
5.16.280 Continuity of service mandatory;
a. It shall be the right of all subscriber -s tr; c(,r;tinue receiving s( ice
insofar as their financial and ot}:er obligations to a Grant(.,(-- are honored.
In the event of a change of Grantee, or in the evert a ne,.-r operator acc;:irt
the system, a Grantee shall cooperate with the City, new Grant('e or oix rater in
maintaining continuity of service to all subscribers. During such period, Grantee
shall be entitled to the revenues for any period during which it operates the
system, and shall be entitled to reasonable costs for its services when it no
longer operates the system.
b. In the event Grantee fails to operate the system for ni.ngty-six (961
consecutive hours without prior approval of the City or with oi.t just cause, the
City may at its option, operate the system or designate an operator until such
time as Grantee restores service under conditions acceptable to the City or a
permanent operator is selected. If the City is required to fulfill this
obligation for a Grantee, the Grantee shall reimburse the Cit,: for all. reasonable
costs or damages in excess of revenues from the system received by the City that
are the result of the Grantee's failure to perforin.
5.16.2.90 Performance evaluation sessions.
a. The City and a Grantee shall hold scheduled performance evaluation
sessions within thirty (30) days of the fourth, eighth, twelfth, and sixteent1:
anniversary dates of a Grantee's award of the franchise and as may be required by
federal and state law.
b. Special evaluation sessions may be held at any time during the term of a
franchise at the request of the City or the Grantee.
C. All evaluation sessions shall be open to the public and announced in a
newspaper of general circulation in accordance with legal notice_ Grantee shall
notify its subscribers of all evaluation sessions by announcement on its system
between the hours of 7:00 p.m. and 9:00 p.m. for five (5) consecutive days
preceding each session.
d. Topics which may be discussed at any -cheduled or specia' evaluation
session may include, but not be limited to, service rate structures; franchise
fee; liquidated damages; free or discounted services; application of ne-.v
technologies; system performance; services provided; programning offered; customer
complaints; privacy, amendments to this ordinance; judicial and FCC rulings;
line extension policies; and Grantee or City rules.
5.16.300 New developments.
a. Subsequent to each Performance Evaluation Session as set forth in
Section 5.16.290, the City Council shall have the authority to order a public
hearing on the provision of additional channel capacity by Grantee or on the
inclusion in the Grantee's cable system of "state of the art" technology or
upgraded facilities. Notice of such hearing shall be provided to Grantee and the
Public not later than thirty (30) days prior to such hearing.
b. If after such hearing the City Council determines that (1) there exists
a reasonable need and demand for additional channel capacity and/or state of the
art technology or upgraded facilities, and (2) provision has been made or will be
made for adequate rates which will allow Grantee a fair rate of return on its
j
investment (including the investment rewired to provide the additi,-:I:al channels
and/or the state-of-the-art technology or upgraded facilities), and (3) will not
result in economic loss for the Grantee, the City Council may order Grantee to
provide a specified number of additional channels and/or specified state-of-the-
art technology or upgraded facilities. Without implying any limitations as to
other provisions of this ordinance, this Section is deemed a material provision
within the meaning of Section 5.16.180 of this ordinance.
5.16.310 Filings with city. All matters provided in this chapter to be filed
with the city, unless provided othen,ise in this chapter, shall be filed with the
city manager.
5.16.320 Fiscal Report.
The Grantee shall file annually with the city manager no later than one
hundred twenty (120) days after the end of the Grantee's fiscal year, a copy of a
financial report applicable to the cable system serving Lodi, or its corporate
annual report, including an incare statement applicable to its operations during
the preceding twelve (12) month period, a balance sheet, a statement of its
properties de-mted to the cable system operations, by categories, giving its
investment in such properties on the basis of original cost, less applicable
depreciation, a statement of sources and application of funds; and a statement of
current subscribers and penetration reached for each class of cable service.
These reports shall be certified as correct by an authorized officer of Grantee
and there shall be submitted along with them such other reasonable information as
the City shall request.
5.16.330 Refusal of service.
Subject to Section 5.16.130, no person or entity in the existing service
area of the grantee shall be arbitrarily refused service; provided, howmver, that
the grantee shall not be required to provide service to any subscriber who does
not pay the applicable connection fee or monthly service charge or my other
charges as provided by this chapter or any resolution granting the franchise.
5.16.340 Service contract.
A. Before the grantee shall provide cable service to any subscriber, the
grantee shall obtain a signed contract from the subscriber containing a provision
substantially as follows:
Subscriber understands that in providing cable service (Grantee) is making
the use of public rights of way and that the continued use of these public
rights of way is in no way guaranteed. In the event the continued use of
such rights of way is denied to (Grantee) for any reason, (Grantee) will
make every reasonable effort to provide service over alternate routes.
Subscriber agrees he will make no claim nor undertake any action against the
City of Lodi, its officers, its employees, or (Grantee) if the service to be
provided by (Grantee) hereunder is interrupted or discontinued because the
continued use of such rights of way is denied to (Grantee) for any reason.
B. The form of the grantee's contract with its subscribers, shall be
subject to approval of the city manager with respect to the installation of this
provision.
5.16.350 Television sale or repair.
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The grantee or any of its empioyt>_e5 during their course of employnr nt s*>a' 1
not engage in the business of selling or leasing television, or other receivers
which make any use of signals transmitted by its system, nor shall the grantee or
any of its employees during the course of their employmEnt engage in the repair of
such receivers or the sale of parts for the same. This restriction shall not
apply to a converter that increases the capacity of the system that may be Gold or
leased by the grantee to a subscriber.
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5.16.360 Free service.
The grantee shall provide free of charge a service drop for cable ser -rice
for all public and nonprofit private schools, city police and fire stations, city
recreation centers, and any additional municipal buildings designated by the city
council, provided that such locations are passed by transmission cable maintainc:a
for the service of paying subscribers. If the service drop exceeds one nu;;dre-d
fifty feet, the grantee may charge for the excess footage on the basis of tiiy-- and
materials.
5.16.370
Moving of buildings.
The
grantee shall, on
the
request
of any person holding a building moving
permit issued by the city,
temporarily
raise or lower its wires to perrut the
moving of
buildings. The actual
expense
of such temporary removal or raising or
lowering
of wires shall be
paid
by the
permittee. The grantee shall be given
not less
than five working
days
advancenotice
to arrange for such temporary wire
changes.
5.16.380 Unauthorized connections -- Tampering.
A. It is unlawful for any person, firm or corporation to make any
unauthorized connection, whether physically, acoustically, inductively,
electronically or otherwise, with any part of a franchised cable system within the
city for the purpose of taking or receiving television signals, radio signals,
pictures, programs, sound or electronic impulses of any kind for the purpose of
enabling himself or others to receive any such television signal, radio signal,
picture, program, sound or electronic impulses.
-42-
B. It is unlawful for any person, wit -'.-.out tt.e ror:sent of the (rrl-tee, to
willfully tamper with, remove, obstruct or injure any cables, wires, devices or
equipment used for the distribution of television signals, radio signals,
pictures, programs, sound or electronic impulses of any kirni.
5.16.390 Transfers and assignments.
a. A franchise shall not be sold, assigned or transferred, wither in whole
or in part, or leased, sublet, nor shall title thereto, either legal or egdit:� le
or any right, interest or property therein, pass to or vest in any person without
the prior written consent of the City. Such consent shall not be withheld
unreasonably.
No such consent shall be required for a transfer in trust, mortgaae, or
other hypothecation as a whole or in part to se^ure an indebtedness.
The proposed assignee must show technical ability, finF--lcial capability,
legal qualifications and general character qualifications as deternu nea by the
City and must agree to comply with all provisions of the franchise and such
conditions as may be prescribed by Council expressed b- resolution. City shall be
deemed to have consented to a proposed transfer or assignment in the event its
refusal to consent is not cor m nicated in writing to Grantee within one hundred
twenty (120) days following receipt of written notice of the proposed transfer or
assignment.
b.
The Grantee shall
promptly notify
the City of any
actual or proposed
change in
or transfer of, or acquisition by
any other party
of, control of the
Grantee.
The word "control"
as used herein is not limited to
major stockholders
but includes actual working
control in whatever manner exercised. eery change,
transfer,
or acquisition of
control of the
Grantee shall make the franchise
subject to
cancellation unless and until the
City shall have
consented thereto,
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which consent will r.ot be unreasonably withheld. For the purpose of determining
whether it shall consent to such change, transfer or acquisition of control, the
City may inquire into the qualifications of the prospective controlling party and
the Grantee shall assist the City in any such inquiry.
C. A rebuttable presumption that a transfer of control has occurred shall
arise upon the acquisition or accumulation by any person or group of persons of
10 percent of the voting interest of the Grantee.
d. The consent or approval of the City Council to any transfer of the
franchise shall not constitute a waiver or release of the rights of the City in
and to the streets, and any transfer shall by its term;, be expressly subject to
the terms and conditions of a franchise-
e. In any absence of extraord nary circumstances, the City will not approve
any transfer or assignment of a franchise prior to substantial CCXT—letion of
construction or reconstruction of proposed system.
f. In no event shall a transfer of ownership or control be approved without
successor in interest becaning a signatory to the franchise agreeit�ent.
5.16. 400 Access channels.
a. Each cable system franchised by the City of Lodi shall provide at lea -L
one (1) channel dedicated to access for use by the public as well as goverrmvental
and educational agencies.
b. If the access channel is being utilized more than eighty percent (80%) of
the tune between 4:00 p.m. and 11:00 p.m. for twelve (12) consecutive weeks,
Grantee shall, upon written notice frau the City, make additional ccRmunity access
channel(s) available for the same purposesls), with a maximum of three (3)
canammity access channels to be dedicated for these said purposes (s).
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c. Nothing in thi section shall require Grantee to construct additicnal
channel capacity to the system for the sole purpose of providing additional access
channels.
d. Whenever any access channel is utilized less than four (4) hours per
day for six (6) days per week for twelve (12) consecuti.ve weeks, the Grantee may
be permitted to utilize unused access channel capacity for different and
additional purposes, under rules and procedures established by the City.
e. Grantee shall record all requests for use ofaccess charnel_
Whenever such records indicate in the opinion of the City Council that an
excessive number of people or programs arc being turned away for lack of available
access char el capacity; or whenever the criteria in ;paragraph (b) are exceeded
for any one of the existing access channel uses, those access channels wndch have
been permitted by the City for 'interim" use by a Grantee shall each be restored
to public, governmental or educational use as applicable.
5.16.410 Waivers.
a. Any provision of this Ordinance may be waived at the sole discretion of
the City by resolution of the City Council.
b. Grantee may submit a request for waiver to the City Council at any time
during the franchise term. Such request for waiver may, at the sole discretion of
the City Council, be set for public hearing and a decision shall be made within
one hundred and twenty (120) days following the suLvdssion. Procedures for
modificaticn of franchise obligations shall be in compliance with Section 625 of
the Cable Ccmilw-dcations policy Act of 1984.
C. The City Council may authorize the economic, technical or legal
evaluation of such waiver request and Grantee shall be required to reimburse the
City for any expenditures incurred by City i-: connection with such evaluation..
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d. This section is enacted solely for the convenience auld ttincfiL of tyle
Grantor and shall not be construed in such a rr.3nner as to create any riczht or
entitlement for the Grantee.
5.16.420 P.equised services and facilities.
a. A franchise application shall include a description of the grantee's
system design and a description of the broad categories of pr.lgraJ;ming and
services being offered, including optional premium services, a description of
facilities being proposed for local origination programming, and facilites being
offered to various ccum;unity institutions. The offer of the broad categories of
programming and services contained within a Grantee's application shall be deemed
a binding offer of such Grantee for and to the benefit of the City and the
subscribers of Grantee. In the event a program originator cease: to provide a
service, or in the event the Grantee deterr^jies that other cable services may be
of greater benefit to subscribers, the Grantee may, subject to subsections b and
c, substitute or drop such services.
b. The system, after the incorporation of such substitute services, shall
satisfy the warranty made by Grantee to subscribers and potential subscribers in
its application for a franchise. The City Council, on behalf of system
subscribers, shall have the right to review any substitution of service or change
in broad categories of programming that the Grantee has made and may order a
change therein if it determines, after due hearing on notice, that the warranty
has been violated or that certain broad categories of programming and services
that were cor mitted by Grantee in its Proposal are not being delivered. Any such
order shall issue only after a public hearing has been scheduled and held; and
written notice of such hearing shall }:"_A, }mer, provided to the Grantee and to the
-46-
public at least 30 days prior to such hearing_ Any such order may be enforced by
an appropriate action in the Courts of California or of the United States. A
Grantee shall not, in relation to this section, be deered to have waived any right
accorded to a franchised cable television operator arising under the Firs t
Amendment to the Constitution of the United States, or under the Cable
Commamications Policy Act of 1984.
C. Notwithstanding subsections a and b, a Grantee may, in accordance with
the Cable Cesar ications Policy Act of 1984, upon 30 days' advance notice to the
City, rearrange, replace or rem.ve a particular cable service required by the
franchise if:
(1) such service is no longer available to the Grantee; or
(2) such service is available to the Grantee only upon the pa}int of
a royalty required under section 801 (b) (2) of title 17, United States Code,
which the Grantee can document:
(a) is substantially in excess of the amount of such payment
required on the date of the Grantee's offer to provide such service., and
(b) has not been specifically compensated for through a rate
increase or other adjustment.
Notwithstanding subsections a and b, a Grantee may take such actions to
rearrange a particular service from one service tier to another, or otherwise
offer the service, if the rates for all of the service tiers involved in such
actions are not subject to regulation.
Section 5.16.430 Construction and technical standards.
a. Compliance with construction and technical standards.
Grantee shall construct, install, operate and maintain its system in a
mLnner consistent with all laws, ordinances and construction standards of the City
-47-
of Lodi; The -Standards of &Dod Engineering Fractices for Measurements on gable
Television Systems, published by the National Cable Television Association,, 1983;
and detailed standards suhmitted by Grantee as part of its application, which
standards are incorporated by reference in the franchiFe agreement. In addition,
Grantee shall provide the City, upon request, with a written report of the results
of Grantee's annual proof of performance tests. In the event of the repeal of F -CC
Rules and Regulations, Part 76, Grantee shall pay the costs incurred by the City
for any technical assistance deemed necessary by the City for obtaining
independent verification of technical ccupliance with all standards. This
includes the costs that may be incurred by the City for checking compliance during
the evaluations required in Section 5.16.290.
b. Additional specifications
Construction, installation and maintenance of the cable system shall be
performed in an orderly and workmanlike manner. All cables and wires shall be
installed, where possible, parallel with and in the sane manner as electric and
telephone lines. Multiple cable configurations shall be arranged in parallel and
bundled with due respect for engineering considerations. Underground
installations shall be in conformance with applicable codes.
Grantee shall at all times comply with:
(1) National Electrical Safety Code (National Bureau of Standards);
(2) National Electrical Code (National Bureau of Fire Underwriters);
(3) Bell System Code of Pole Line Construction; and
(4) The Standards of Good Engineering Practices for Measurements on Cable
Television Systems (National Cable Television Association), 1983.
-4S-
Furthermore, the system shall not andarger or interfere with the safety of
persons or property in the franchise area or other areas where the Grantee may
have equipment located.
SDCTION 2. All ordinances and parts of ordinances in conflict herewith are
repealed insofar as such conflict may exist.
SErCTION 3. This ordinance shall be published one time in the "Lodi News
Sentinel", a daily newspaper of general circulation printed and published in the
City of Lodi and shall be in force and take effect thirty days from and after its
passage and approval.
Agprov this 18th day f December 1985
DAVID HINCHMAN
MAYOR
Attest:
ALICE M. RE3
City Clerk
State of *. California
County of.San Joaquin, ss.
I, Alice M. Reimche, City Clerk of the City of Lodi, do hereby certify that
Ordinance No. 1370 was introduced at a regular meeting of the City Council of the
City of Lodi held December 4, 1985 and was thereafter passed, adopted and ordered
to print at a regular meeting of said Council held December 18, 1985 by the
following vote:
Ayes: Council Members - Olson, Pinkerton, Reid, Snider and Hinchman
Noes: Council Members - None
Absent: Council Members - None
Abstain: Council Members - None
-49-
• t�
I further certify that Ordinance No. 1370 was approved and signed by the Mayor on
the date of its passage and the same has been published pursuant to law.
ALICE M. REIVbE .
City Clerk•
Approved as to Form
RONAID M. STEIN
City Attorney
-50-
Chapter 5.16
COMMUNITY CABLE
TELEVISION
SYSTEM FRANCHISES
Sections:
5.12.!60
5.16.010
Definitions.
5.16.020
Franchise required.
5.16.030
Grant of authority.
5.16.040
Application.
C 5.16.050
Grant or refusal.
5.16.060
Acceptance.
5.16.070
Conditions.
5.16.080
Duration—Renewal of
5.16.260
franchise.
5.16.090
Payment.
5.16.100
Financial statement—
5.16.280
Audit—Minimum
payment.
5.16.110
Rates for service.
5.16.120
Limitations.
5.16.130
Rights reserved by city.
5.16.140
Complaint procedure.
5.16.150
Refunds.
5.16.160
Liquidated damages.
5.16.170
Commencement of
5.16350
construction and service.
5.16.180
Forfeiture and
5.16370
termination.
5.16.190
Secutiry fund.
5.16.200
Construction bond.
5.16.210
Construction practices.
5.16390
Transfers and
73
(Lodi )-86)
F=BIT A
5.12.!60
5.16.220
Removal or
abandonment of
facilities.
5.16.230
Changes required by
public improvements.
5.16.240
Failure to complete
work.
5.16.250
Insurance.
5.16.260
Right of inspection—
Plans and records.
5.16.270
Service standards.
5.16.280
Continuity of service
mandatory.
5.16.290
Performance evaluation
sessions.
5.16.300
New developments.
5.16310
Filings with city.
5.16.320
Fiscal report.
5.16330
Refusal of service.
5.16340
Service contract.
5.16350
Television sale or repair.
5.16360
Free service.
5.16370
Moving of buildings.
5.16380
Unauthorized
connections—
Tampering.
5.16390
Transfers and
assignments.
5.16.400
A:cess channels.
5.16.410
N`aivers.
5.16.170
Ieoir,:,i services and
5.16.430
Construction and
technical standards.
5.16.010
Definitions.
For the purposes of this chapter, the
following words and phrases shall have
the meanings respectively ascribed to
them by this section:
A. "Access channel" means a single
channel dedicated in whole or in part for
(Lodi )-86)
F=BIT A
5.16.010
local programming which is not origi-
nated by a cable company.
B. "Basic service` means any service
tier which includes the retransmission of
local television broadcast signals and
public, educational and governmental
access channels.
G "Cable services" are defined as the
one-way transmission to subscribers of
video programming and other program-
ming services together with subscriber
interaction, if any, which is required for
the selection of such programming and
programming services that the cable
operator makes available to all subscrib-
ers generally. Examples of cable services
include: video programming, pay-per-
view, voter preference polls in the con-
text of a video program, teletexts, one-
way transmission of any computer soft-
ware, and one-way videotex services such
as news services, stock market informa-
tion, etc. Noncable services would
include: shop -at-home, bank -at-home
services, electronic mail, one-way and
two-way transmission of nonvideo data
and information not offered to all sub-
scribers, data processing, video con
ferencing and voice communication.
D. "Cablecasting" is programming
( carried on a cablesystem, exclusive of
broadcast signals, whether originated by
the cable operator or any other party.
E. "Cable system". means a facility
consisting of a set of closed transmission
paths and associated signal generation,
reception, and control equipment that is
designed to provide cable service which
includes video programming and which
is provided to multiple subscribers
within a community, but such term does
not include (1) a facility that serves only
(Lodi 3-86)
74
to retransmit the television signals of one
or more television broadcast stations; (2)
a facility that serves only subscribers in
one or more multiple -unit dwellings
under common ownership, contrtol, or
management, unless such facility or facil-
ities uses any public right-of-way; (3) a
facility ofa common carrier which is sub-
ject in whole or in part, to the provisions
of Title II of the Communications Act of
1984, except that such facility shall be
considered a cable system to the extent
such facility is used in the transmission of
video programming directly to subscrib-
ers; or (4) any facilities of any electric
utility used solely for operating its elec-
tric utility systems.
F "Local origination programming"
means programming locally produced by
the company.
G. "Franchise" means any nonex-
clusive authority granted pursuant to this
chapter in terms of franchise or franchise
renewal or otherwise to construct, oper-
ate and maintain a cable system in the
incorporated area of the city. The term
"franchise" includes the term "franchise
renewal" in this chapter.
H. "Franchise area" means all or any
portions of the incorpoiated area of the
city for which a franchise has been
granted under this chapter.
I. "Grantee' means the person to
whom a franchise under this chapter is
granted by the council and any lawful
successor or assignee of such a person.
J. "Gross annual receipts" means any
and all compensation or receipts
obtained from and as a result of the oper-
ation of a cable system by a grantee
within the franchised area; except that
such term shall not include receipts or
compensation for.
1. Installation, reconnection or any
other nonrecurring charges; .
2. The amount of any refunds, credits
or other payments made to subscribers or
users;
3. Any taxes on services furnished by
the grantee imposed directly or indirectly
on any subscriber or user by any munici-
pal corporation, political subdivision,
state or other governmental unit and col-
lected by the grantee for the governmen-
tal unit; and
4. The sale or transfer of tangible
property;
5. The sale or transfer ofthe franchise;
6. The issuance, sale ortransfer ofcor-
poration stocks, bonds or other
securities; and
�. 7. Loans or gifts to the grantee.
K. "Person" means any person, firm,
association, organization. partnership,
business trust, joint venture, corporation
or company.
L. "Property of grantee' means any
property constructed, installed, operated
or maintained by a grantee under the
authority of a nonexclusive franchise
issued pursuant to this chapter.
M. "Street"means the surface of, and
the space' above and below, any public
street, road, highway,freeway, lane,
alley, court, sidewalk, parkway, drive,
public utility easement or other public
place as may be authorized by the coun-
cil existing as such as ofor after the effec-
tive date of the ordinance codified in this
chapter within the incorporated area of
the city.
N. "Subscriber" means any person or
entity receiving for any purpose the cable
75
5.16A1O
service of a grantee. (Ord. 1370 § I (part),
1985)
5.16.020 Franchise required.
No person shall extend, operate or
carry on the business of distributing to
any persons in this city any television
signals or radio signals by means of a
cal.)le system unless a franchise or
renewal of franchise therefor has first
been obtained pursuant to the provisions
of this chapter, and unless such franchise
is in full force and effect. No person shall
construct, install or maintain within any
street in the city or within any other pub-
lic property of the city or within any pri-
vately owned area within the city which
has not yet become a public street but is
designated or delineated as a proposed
public street on any tentative subdivision
snap approved by the city, any equip-
ment or facilities for distributing any
television signals or radio signals through
a cable system, unless a franchise autho-
rizing such use of such street or property
or area has first been obtained pursuant
to the provisions of this chapter, and
unless such franchise is in full force and
effect. (Ord. 1370 § I (part), 1985)
5.16.030 Grunt of authority.
A. A* nonexclusive franchise to con-
struct, operate and maintain a cable
system within any franchise area may be
granted by the council to any person,
whether operating under an existing
franchise or not, offering to furnish and
provide a system pursuant to the terms
and provisions of this chapter. No provi-
sion of this chapter shall be construed as
to require the ?nting of a franchise
when in the opinion of the council it is in
(Lodi 3.86)
5.16.030.
the public interest to restrict the number
E. The construction, maintenance,
of grantees to one or more. Neither the
and operation of grantee's cable system
granting of any nonexclusive franchise
and all property of grantee subject to the
under this chapter nor any of the provi-
provisions of this chapter shall be subject
sions contained in this chapter shall be
to all lawful police powers, rules and reg-
construed to prevent the city from grant-
ulations ofthe city. Thecity shall have the
ing any identical, or similar, nonex-
power at any time to,order and require
elusive franchise to any person within the
grantee to remove or abate any pole, line,
city.
tower, wire, cable, guy, conduit, electric
(B) Successful applicants chosen by
conductor, or any other structure or facil-
the city council will be granted the right
ity that is dangerous to life or property. In
' and privilege to construct, erect, operate
the event grantee, after written notice,
and maintain, in, upon, along, across,
fails or refuses to act, the city shall have
above, over and under the streets, alleys,
the power to remove or abate the same at
public ways and public places now laid
the expense of the grantee, all without
out or dedicated and all extensions
compensation or liability for damages to
thereof and additions thereto in the city
grantee. (Ord. 1370 § I (part), 1985)
poles, wires, cables, underground con-
duits, manholes, and other cable conduc-
5.l 6.040 Application.
tors and fixtures necessary for the
A. An application for a franchise or
maintenance and operation in the city of
franchise renewal under this chapter
a cable system to be used for the sale and
shall be in writing and accompanied by a
distribution of cable services to the resi-
payment to the city in an amount to be
dents of the city,
established and amended from time to
G Any privilege claimed under any
time by resolution of the city council. An
.-such franchise by y the grantee in any street
application shall contain the following
or other public property shall be subordi-
information:
nate to any prior lawful occupancy of the
1. The name and address of the appli-
streets or other public property.
cant. If the applicant is a partnership, the
D. Insofar as it is not inconsistent
name and address ofeach partner shall be
with or otherwise preempted by federal.
set forth. If the applicant is a corporation,
or state regulation, the city council also
the application shall state the names and
grants the right and privilege to suc-
addresses of its directors, main officers,
cessful grantees to provide noncable
major stockholders and associates, and
communications services. Thecitycoun-
the names and addresses of parent and
61 retains all authority, not otherwise
subsidiary companies.
Preempted, to regulate noncable com-
2. A description of the manner in
munication services to the extent neces-
which the applicant proposes to con-
sary to assure the delivery of proposed
struct, install, maintain and operate the
noncable services, if any, and that they
cable system and the extent and manner
are in compliance with all regulatory
in which existing or future poles or other
provisions of this chapter.
public utilities will be used for the system.
(Lodi 386) 76
3. A detailed description of the pro-
posed plan of operation of the applicant
which shall include, but not be limited to
the following:
a. A detailed map indicating all areas
to be served, how they are to be served
and a proposed time schedule for the
installation ofall equipment necessary to
become one hundred percent opera-
tional, throughout the entire area to be
served;
b. A detailed, informative, and refer-
enced statement describing the actual
equipment and the operational and tech-
nical standards proposed by the appli-
cants.
4. A statement of the estimated costs
of the installation of the proposed system
described in subdivisions 2 and 3 of this
/ subsection.
S. All applicants are required to
clearly delineate the initial service area
being proposed on a map of sufficient
detail (see subdivision 3 of this subsec-
tion). The map shall also indicate any
and all areas that will not receive services.
6. All applicants shall agree to extend
cable system upon request of any con-
tiguous area not designated for initial
sers:ce ir. the plan when potential sub-
scribers can be served by extension of the
cable system past dwelling units equiv-
alent to a density of forty homes per mite
of street. Extension shall be at grantee's
cost. If undergrounding is required by
regulation, grantee must make installa-
tion at grantee's expense. Where aerial
extension is allowed by regulation but
underground installation is requested by
benefitted subscribers, the cost of under -
grounding that exceeds the estimated
5.16.040
aerial extension cost may be charged to
benefitted subscribers.
7. A statement or schedule in a form
approved by the city manager of pro-
posed rates and charges to subscribers for
installation and services, and a copy of
the proposed service agreement between
the grantee and its subscribers shall
accompany the application.
8. A statement setting forth all agree-
ments and understandings, whether writ-
ten, oral or implied existing between the
applicant and any person who is a party
in interest with respect to the proposed
franchise or the proposed cable opera-
tion. if a franchise is granted to a person
posing as a front or as the representative
of another person, and such information
is not disclosed in the original applica-
tion, such franchise is void and of no
force and effect.
9. A financial statement prepared by a
certified public accountant or public
accountant satisfactory to the council,
demonstrating applicant's financial sta-
tus and its financial ability to complete
the construction or reconstruction,
installation and operation of the pro-
posed system.
10. An original application for a fran-
chise shall include a detailed financial
plan (pro forma) descn'bing for each year
of the franchise, projected number of
subscribers, rates, all revenues, operating
expenses, capital expenditures, deprecia-
tion schedule, income statements and a
sources and uses of funds statement. All
information is to be presented in the for-
mat to be prescribed by the city.
B. The council may at any time
demand, and applicant shall then pro-
vide, such supplementary, additional or
77 (Lodi 3.96)
5.16.040
other information as the council deems
reasonably necessary to determine
whether the requested franchise should
be granted. (Ord. 1370 § I (part), 1985)
5.16.050 Grant or refusal.
Upon consideration of any applica-
tion, the council may refuse to grant the
requested franchise or the council may
by resolution grant a franchise for a cable
system to any applicant as may appear
from its application to be in the opinion
of the council best qualified to render
good and efficient cable.service to sub-
scribers in the proposed franchise area.
The application submitted, together with
any amendments, and this chapter shall
constitute and form part of the franchise
if granted. (Ord. 1370 § 1(part), 1985)
5.16.060 Acceptance.
Within thirty days after the date of a
resolution awarding a franchise, or
within such extended period of time as
the council may authorize, the grantee
shall file with the city manager his written
acceptance in forms satisfactory to the
city attorney, of the franchise, together
with the required bond and insurance
policies, and his agreement to be bound
by and to comply with and to do all
things required of him by the provisions
of this chapter and the franchise. Such
acceptance and agreement shall be
acknowledged by the grantee before a
notary public and shall be in form and
fi content satisfactory to, and approved by,
the city attorney. (Ord. 1370 § I (part),
1985)
5.16.070 Conditions.
A. Any franchise granted pursuant to
(Lodi 3-86)
78
this chapter shall include, among other
things, the following condition:
The cable system herein franchised
shall be used and operated solely and
exclusively for the purpose expressly
authorized by Ordinance of the City of
Lodi and no other purpose what-
soever.
B. Inclusion of the statement set out
in subsection A ofthis section in any such
franchise does not limit the authority of
the city to include any other reasonable
condition, limitation or restriction which
it deems necessary to impose in connec-
tion with a franchise granted pursuant to
the authority conferred by this chapter.
(Ord. 1370 § I (part), 1985)
5.16.080 Duration—Renewal of
franchise.
A. The duration of the right, priv-
ileges and authorizations granted in a
franchise agreement shall be not to
exceed twenty years from the date a fran-
chise is awarded. A franchise may be
renewed by the city upon application of
the grantee pursuant to the procedure
established in subsection B ofthis section
and in accordance with the then applica-
ble law.
B. Renewal.
1. During the six-month period which
begins with the thirty-sixth month before
the franchise expiration, the city may on
its own initiative, and shall at the request
of the grantee, commence proceedings
which afford the public appropriate
notice and participation for the purpose
of:
C
C
M
a. Identifying the future cable -related
community needs and interests; and
b. Reviewing the performance of the
grantee under the franchise during the
then current franchise term.
2. a. Upon completion of a proceed- .
ing under subdivision 1 of this subsec-
tion, the grantee seeking renewal of a
franchise may, on its own initiative or at
the request of the city, submit a proposal
for renewal.
b. Any such proposal shall contain
such material as the city may require,
including proposals for an upgrade of the
cable system.
c. The city may establish a date by
which such proposal shall be submitted.
3. a. Upon submittal by the grantee
of a proposal to the city for the renewal of
the franchise, the city shall provide pub-
Iic notice of such proposal and, during
the four-month period which begins on
the completion ofany proceedings under
subdivision 1 of this subsection, renew
the franchise or, issue a preliminary
assessment that the franchise should not
be renewed and, at the request of the
grantee or on its own initiative, com-
mence an administrative proceeding,
after providing prompt public notice of
such proceeding, in accordance with sub-
paragraph b of this subdivision to con-
sider whether.
i. The grantee has substantially com-
plied with the material terms of the exist-
ing franchise and with applicable law,
ii. The quality of the grantee's service,
including signal quality, response to con-
sumer complaint, and billing practices,
but without regard to the -mix, quality; or
level of cable services or other services
5.16.080
provided over the system, has been rea-
sonable in light of community needs;
iii. The grantee has the financial,
legal, and technical ability to provide the
services, facilities, and equipment as set
forth in the grantee's proposal; and
. iv. The grantee's proposal is reason-
able to meet the future cable -related
community needs and interests, taking
into account the cost of meeting such
needs and interests.
b. In any proceeding under sub-
paragraph a of this subdivision, the
grantee shall be afforded notice and the
grantee and the city, or its designee, shall
be afforded fair opportunity for full par-
ticipation, including the right to intro-
duce evidence (including evidence
related to issues raised in the proceeding
under subdivision 1 of this subsection) to
require the production ofevidence and to
question witnesses. A transcript shall be
made of any such proceeding.
c. At the completion of a proceeding
under this subdivision, the city shall issue
a written decision granting or denying
the proposal for renewal based upon the
record ofsuch proceeding, and transmit a
copy ofsuch decision to the grantee. Such
decision shall state the reisons therefor.
4. Any denial of a proposal for
renewal shall be based on one or more
adverse findings made with respect to the
factors described in subparagraphs i
through iv of subdivision 3a, pursuant to
the record of the proceeding under sub-
division 3.
5. Ifthe grantee's proposal for renewal
has been denied by a final decision of the
city made pursuant to this section, or has
been adversely affected by a failure of the
79 (tali 3-86)
s
a`
R
a. Identifying the future cable -related
community needs and interests; and
b. Reviewing the performance of the
grantee under the franchise during the
then current franchise term.
2. a. Upon completion of a proceed- .
ing under subdivision 1 of this subsec-
tion, the grantee seeking renewal of a
franchise may, on its own initiative or at
the request of the city, submit a proposal
for renewal.
b. Any such proposal shall contain
such material as the city may require,
including proposals for an upgrade of the
cable system.
c. The city may establish a date by
which such proposal shall be submitted.
3. a. Upon submittal by the grantee
of a proposal to the city for the renewal of
the franchise, the city shall provide pub-
Iic notice of such proposal and, during
the four-month period which begins on
the completion ofany proceedings under
subdivision 1 of this subsection, renew
the franchise or, issue a preliminary
assessment that the franchise should not
be renewed and, at the request of the
grantee or on its own initiative, com-
mence an administrative proceeding,
after providing prompt public notice of
such proceeding, in accordance with sub-
paragraph b of this subdivision to con-
sider whether.
i. The grantee has substantially com-
plied with the material terms of the exist-
ing franchise and with applicable law,
ii. The quality of the grantee's service,
including signal quality, response to con-
sumer complaint, and billing practices,
but without regard to the -mix, quality; or
level of cable services or other services
5.16.080
provided over the system, has been rea-
sonable in light of community needs;
iii. The grantee has the financial,
legal, and technical ability to provide the
services, facilities, and equipment as set
forth in the grantee's proposal; and
. iv. The grantee's proposal is reason-
able to meet the future cable -related
community needs and interests, taking
into account the cost of meeting such
needs and interests.
b. In any proceeding under sub-
paragraph a of this subdivision, the
grantee shall be afforded notice and the
grantee and the city, or its designee, shall
be afforded fair opportunity for full par-
ticipation, including the right to intro-
duce evidence (including evidence
related to issues raised in the proceeding
under subdivision 1 of this subsection) to
require the production ofevidence and to
question witnesses. A transcript shall be
made of any such proceeding.
c. At the completion of a proceeding
under this subdivision, the city shall issue
a written decision granting or denying
the proposal for renewal based upon the
record ofsuch proceeding, and transmit a
copy ofsuch decision to the grantee. Such
decision shall state the reisons therefor.
4. Any denial of a proposal for
renewal shall be based on one or more
adverse findings made with respect to the
factors described in subparagraphs i
through iv of subdivision 3a, pursuant to
the record of the proceeding under sub-
division 3.
5. Ifthe grantee's proposal for renewal
has been denied by a final decision of the
city made pursuant to this section, or has
been adversely affected by a failure of the
79 (tali 3-86)
5.16.080
city to act in accordance with the pro-
cedural requirements of this section, the
grantee may appeal such final decision or
failure pursuant to the provisions of Sec-
tion 635 of the Federal Cable Commu-
nications Policy Act of 1984.
6. Notwithstanding the provisions of
subdivisions 1 through 5 of this subsec-
tion, the grantee may submit a proposal
for the renewal of the franchise pursuant
to this subdivision at any time, and the
city may, after affording the public ade-
quate notice and opportunity for com-
ment, grant or deny such proposal at any
time (including after proceedings pur-
suant to this subsection have com-
menced). The provisions of subdivisions
1 through 5 of this subsection shall not
apply to a decision to grant or deny a
proposal under this subdivision. The
denial of a renewal pursuant to this sub-
division shall not affect action on a
renewal proposal that is submitted in
accordance with subdivisions 1 through
5. (Ord. 1370 § I (part), 1985)
5.16.090 Payment.
Any grantee granted a franchise under
this chapter shall pay to the city, during
the life of such franchise, a sum equal to
three percent of the annual gross receipts
of the grantee, payable quarterly. (Ord.
1370 § 1(part), 1985)
5.16.100 Financial statement --
Audit --Minimum payment.
A. The grantee shall file with the
council within ninety days after the
expiration of any fiscal year or portion
thereof during which a franchise is in
force, a financial statement prepared by a
certified public accountant or public
!Lodi 3-861
accountant showing in detail gross
annual receipts, as defined in this chap-
ter, of the grantee during the preceding
calendar year or portion thereof. It shall
be the duty of the grantee to pay to the
city within fifteen days after the time for
filing such statements the sum prescribed
by the franchise, or any unpaid balance
thereof, for the calendar year or the por-
tion thereof covered by the statement.
B. The right is reserved to the city of
audit and recomputation of any and all
amounts paid under this chapter and
acceptance until expiration of period of
five years following payment shall not be
construed as a release or as an accord and
satisfaction of any claim the city may
have for further or additional sums pay-
able under this chapter or for the per-
formance of any other obligations under
this chapter.
C. In any year, commencing with the
first full calendar year of service during
which the franchise payments amount to
less than twelve hundred dollars, the
grantee shall pay to the city for such a
year a minimum total amount of twelve
hundred dollars.
D. in the event of any holding over
after expiration or any other tet mination
of a franchise issued under this chapter,
whether with or without the consent of
the city, the grantee shall pay to city a
compensation twice the percent of its
gross annual receipts during such period
as it would be required to pay under its
franchise if there were no holding over.
(Ord. 1370 § I (pact), 1985)
5.16.110 Rates for service.
A. The grantee shall file with the city
council a true and correct schedule of
80
C
C
rates to be chargee( for installation and
connection to its cable system and a
monthly charge for cable service. Such
rates shall not be changed or modified in
any manner without first filing the
changed or modified rates with the city
council thirty days prior to the effective
date of such change or modification.
B. The city council shall have the
authority to regulate the rates to the
extent the council is permitted to by
federal, state or local law. (Ord. 1370 § I
(part), 1985)
5.16.120 Limitations.
A. Any franchise granted under this
chapter shall be nonexclusive.
B. No privilege or exemption shall be
authorized or conferred by any franchise
granted under this chapter except those
specifically prescribed in this chapter.
C. Any privilege claimed under a
franchise by the grantee in any street, or
other public property, shall be subordi-
nate to any prior occupancy thereof for
public purposes.
D. A franchise granted under this
chapter shall be a privilege to be held in
-pp_rsnnal trust by the original grantee. It
cannot be sold, transferred, leased,
assigned o: di -,.posed of, in whole or in
part, either by forced or involuntary sale,
sale, merger, consolidation or otherwise,
without prior consent of the council
expressed in writing. The grantee shall
file with the council within thirty days
prior to sale, transfer, assignment or lease
of the franchise or any part thereof or any
rights or privileges granted thereby, writ-
ten evidence of the proposed transaction
certified to by the grantee or its duly
authorized officers. Any proposed
5.16.110
assignee must show financial responsibil-
ity to carry out the terms of the franchise
and must agree to comply with all of the
provisions of this chapter, and provided
further, that no consent or approvL1 shall
be required for a transfer in trust, by
mortgage, by security agreement, or by
other hypothecation as a whole, to secure
an indebtedness, or for a transfer
required by operation of law.
E. Any right or power in, or duty
impressed upon any officer, employee,
department or board of the city shall be
subject to transfer by the council or by
law to any other officer, employee,
department or board of the city.
F. The grantee shall have no recourse
whatsoever against the city for any loss,
cost, expense or damage, arising out of
any provisions or requirements of this
chapter or its enforcement.
G. Any franchise granted under this
chapter shall not relieve the grantee of
any obligation involved in. obtaining pole
space from any department or division of
the city, other agency of government,
utility company, or from others main-
taining poles in streets; provided, that the
latter shall cooperate with the grantee to
the end that only one set of poles shalt be
required by all.
H. Any franchise granted under this
chapter is in lieu of any and all other
rights, privileges, powers, immunities
and authorities owned, possessed, con-
trolled or exercisable by the grantee, or
any successor to any interest of the
grantee, of or pertaining to the construc-
tion, operation or maintenance of any
cable system in the incorporated limits of
the city, and the acceptance of a franchise
under this chapter shall operate as
5.16.120
between grantee and the city, as an aban-
donment of any and all of such rights,
privileges, powers, immunities and
authorities within the city, to the effect
that, as between the grantee and the city,
any and all construction, operation and
maintenance by any grantee of any cable
system in the city shall be, and shall be
deemed and construed in all instances
and respects to be, under and pursuant to
such franchise, and not under or pur-
suant to any other right, privilege, power,
immunity or authority whatsoever. (Ord.
1370 § I (part), 1985)
5.16.130 Rights reserved by city.
A. Nothing in this chapter shall in any
way or to any extent impair or affect the
right of the city to acquire the grantee's
property either by purchase or through
exercise of the right of eminent domain,
and nothing in this chapter shall be con-
strued to contract away or to modify or
abridge the city's right of eminent
domain in respect to any grantee.
B. No franchise granted under this
chapter shall be given any value before
any court or other public authority in any
action or proceeding brought by the city
in excess of the amount of the required
filing fee and any other sum paid by the
grantee to city for a franchise at the time
of granting.
C. There is reserved to the city every
right and power which is required to be
reserved or provided in this chapter by
any ordinance or resolution of the city,
and the grantee, by its acceptance of any
franchise, agrees to be bound thereby and
to comply with any action or require-
ments of the city in its exercise of such
rights or power, enacted or established
(Lodi 3-86)
82
before or after the effective date of the
ordinance codified in this chapter.
D. The council may do all things
which are necessary and convenient in
the exercise of its jurisdiction under this
chapter.
E. Neither the granting of any fran-
chise under this chapter nor any of the
provisions contained in this chapter shall
be construed to prevent the city from
granting any identical, or similar, fran-
chise to any other person within all or any
portion of the city.
F. There is reserved to city the right to
amend any section or part of this chapter
so as to require reasonable additional or
greater standards of construction, opera-
tion, maintenance or otherwise, on the
part of the grantee for purposes of pro-
tecting the public health, sak-ty and wel-
fare. This provision shall not apply to
commitments of a contractual nature
made in a franchise agreement or fran-
chise renewal agreements.
G. Neither the granting of any fran-
chise nor any provision in this chapter
shall constitute a bar to the exercise of
any governmental right or power of city.
H. All facilities of any grantee
licensed under this chapter within the
city shall be available for civil defense
purposes at such ti mes as the city director
of civil defense shall require. (Ord. 1370 §
I (part), 1985)
5.16.140 Complaint procedure.
A. The city manager or the city man-
ager's designee is specified by the city as
having primary responsibility for the
continuing administration of a franchise -
and implementation of complaint pro-
cedures.
5.16.140
B. A grantee shall maintain a central
service log which will indicate the nature
office within or in close proximity to the
of each service complaint, the date and
city, which shall be open during all usual
time is was received, the disposition of
business hours, have a publicly listed
said complaint and the time and date
telephone with a toll-free number and
thereof. The log shall be made avai!able
sufficient lines; and be so operated that
for periodic inspection by representatives
complaints and requests for repairs, bill-
ofthe city manager. All service complaint
ing or adjustments shall be received on a
entries shall be retained on file for a
twenty-four hour basis.
period consisting ofthe most recent three
C. A grantee shall maintain a repair
years.
and maintenance crew which shall
F When there have been similar com-
respond to subscriber complaints or
plaints made or when there exists other
requests for service within twenty-four
evidence, which, in the judgment of the
hours after receipt of the complaint or
city manager casts doubt on the reliabil-
request. No charge shall be made to the
ity or quality of cable service, the city
subscriber for this service unless such
manager shall have the right and author -
maintenance or repair is required as a
ity to compel a grantee to test, analyze,
result of damage caused by subscriber.
and report on the performance of the
D. I. A grantee shall establish pro-
system. Such report shall be delivered to
cedures for receiving, acting upon, and
the city manager no later than fourteen
( resolving subscriber complaints to the
days after the city manager formally noti-
satisfaction of the city manager's office.
hes the grantee and shall include the fol -
A grantee shall furnish a notice of such
lowing information: the nature of the
procedures to each subscriber at the time
complaints which precipitated the spe-
of initial subscription to the system and
cial tests; what system components were
annually thereafter,
tested, the equipment used, and pro -
2. Grantee's service call procedures
cedures employed in said testing; the
shall contain provisions to protect the
results of such tests; and the method in
interests of subscrib-:rs. In the event that
which said complaints were resolved.
the grantee or its employee determines
G. The city manager may require that
that grantee's cable system is not respon-
tests and analyses shall be supervised by a
sible for any given problem which has
professional engineer not on the perma-
resulted in a service call (i.e., subscriber
nent staff' of a grantee. The aforesaid
equipment is at fault), the subscriber
engineer should sign all records of the
shalt have the right to have this Conten-
special tests and forward to the city man -
tion demonstrated through the use of an
ager such records with a report interpret -
additional television receiver com-
ing the results of the tests and
parison. A standard television receiver
recommending actions to be taken by a
will be used in the subscribers home to
grantee and the city.
allow a direct A/B comparison of per-
H. The city's right under this section
formance.
shall be limited to requiring tests, analy-
_ E. A grantee shall keep a maintenance
-
ses, and reports covering specific subjects
(
\. 83
(Lodi 3-8e)
5.16.140 (�
and characteristics based on said com-
plaints or other a :ridence when and under
such circumstances as the city has rea-
sonable grounds to believe that the com-
plaints or other evidence requires that
tests be performed to protect the public
against substandard cable service.
I. The city manager is authorized and
empowered to adjust, settle or compro-
mise any controversy or charge arising
from the operations of any grantee under
this chapter, either on behalf of the city,
the grantee or any subscriber in the best
interest of the public.
J. Either the grantee or any member
of the public who may be dissatisfied with
the decision of the city manager may
appeal the matter to the council for hear-
ing and determination.
K. The council may accept, reject or
modify the decision of the city manager
and the council may adjust, settle or
compromise any controversy or cancel
any charge arising from the operations of
any grantee or from any provision of this
chapter. (Ord. 1370 § 1(part), 1985).
5.16.150 Refunds.
A. Subscribers not satisfied that serv-
ices have been provided as outlined in
this chapter and the franchise agreement
shall be encouraged to notify the system
manager. The grantee shall work with the
subscriber to resolve the problem within
forty-eight hours, and upon request by a
subscriber, the grantee shall credit the
subscriber's account on a pro rata basis
for Ioss of service commencing forty-
eight hours after notification of the
grantee.
B. A grantee shall at the time of initial
subscription to the system and annually
(Lodi 3-86) 84
thereafter furnish a notice to subscribers
of their right to a refund for any loss or
interruption of service for forty-eight
hours or more. (Ord. 1370 § I (part),
1985).
5.16.160 Liquidated damages.
By acceptance of the franchise granted
by the city, a grantee understands and
shall agree that failure to comply with
any time and performance requirements
as stipulated in this chapter and franchise
agreement will result in damage to the
city, and that it is and will be impractica-
ble to determine the actual amount of
such damage in the event of delay or
nonperformance; the franchise agree-
ment shall include provisions for liqui-
dated damages to be paid by the grantee
in amounts set forth in the franchise
agreement and chargeable to the security
fund for the following concerns:
A. Failure to complete system con-
struction or reconstruction in accord-
ance with Sections 5.16.170 and 5.16.430
unless the council specifically approves
the delay by motion or resolution, due to
the occurrene of conditions beyond
grantee's control, a grantee shall pay five
hundred dollars per day for each day or
part thereof, the deficiency continues. .
B. Failure to provide upon written
request, data, documents, reports, infor-
mation or to cooperate with city during
an application process or cable system
review, a grantee shall pay fifty dollars
per day for each day or part thereof, the
violation occurs or continues.
C. Failure to test, analyze and report
on the performance of the system follow-
ing
ollowing a written request pursuant to this
chapter, a grantee shall pay to city one
C
( 5.16.160
C
I
hundred dollars per day for each day or
part thereof, that such noncompliance
continues.
D. For failure to provide in a continu-
ing manner the broad categories of serv-
ices proposed in the accepted application
unless the council specifically approves
grantee a delay or change, or the grantee
has obtained modification of its obliga-
tion under Section 625 of the Cable
Communications Policy Act of 1984;
grantee shall pay to the city five hundred
dollars per day for each day or part
thereof that each noncompliance con-
tinues.
E. Forty-five days following adoption
of a resolution by the city council in
accordance with Section 5.16.270 deter-
mining a failure of grantee to comply
with operational, maintenance or tech-
nical standards, grantee shall pay to the
city five hundred dollars for each day or
part thereof, that such noncompliance
continues.
F. Any other action or nonaction by
the grantee as agreed upon between the
city and grantee and set forth in the fran-
chise agreement. Nothing in this section
shall preclude further liquidated
damages as a,, •d upon by the parties in
the franchise agreement. (Ord. 1370 y 1
(part), 1985)
5.16.170 Commencement of
construction and service.
A. Construction Plan and Schedule.
1. Map and Plan. Grantee shall sub-
mit a construction plan or reconstruction
plan which shall be incorporated by ref-
erence and made a part of the franchise
agreement. The plan shall consist of a
map of the entire franchise area and shall
clearly delineate the following:
a. The areas within the franchise area
where the cable system will be initially
available to subscriber including a sched-
ule of construction for each year that
construction or reconstruction is pro-
posed.
b. Areas within the franchise area
where extension of the cable system can-
not reasonably be done due to lack of
present or planned development or other
similar reasons, with the areas and the
reasons for not serving them clearly iden-
tified on the map.
B. 1. Upon acceptance of any fran-
chise, the grantee shall immediately initi-
ate action to obtain all permits, licenses,
easements, variances and any other
authorizations which are required or nec-
essary in the conduct of its business,
including but not limited to any utility
joint use attachment agreements, micro-
wave carrier licenses, any authorizations
required to import distant signals, and
any other permits, licenses and autho-
rizations to be granted by duly con-
stituted regulatory agencies having or
asserting jurisdiction over the operation
of the cable system, any associated
microwave transmission facilities, or any
other associated facility, and the grantee
shall proceed with due diligence until all
such matters are obtained.
2. Copies of all petitions, applications
and communications submitted by the
grantee to the Federal Communications
Commission or any other federal or state
regulatory commission or agency having
jurisdiction in respect to any matters
affecting cable operations authorized
pursuant to its franchise, shall also be
85 (Lodi MO
5.16.170
submitted simultaneously to the city by
the grantee.
C. Within ninety days after obtaining
all the required or necessary permits,
licenses, easements, variances and any
other authorizations referred to in sub-
section A of this section, the grantee shall
commence construction and installation
of the cable system.
D. Within six months after building
permits are granted for a particular area,
the grantee shall proceed to render initial
service to subscribers, and the comple-
tion of construction and installation shall
be pursued with reasonable diligence, not
to exceed fifteen months from the date of
the granting of the permits for the partic-
ular area to be served.
E. Failure to do any of the require-
ments ofsubsections A, B, Cand D ofthis
section within the time specified except
as provided in subsection F ofthis section
shall be grounds for termination of the
franchise.
F The council may in its discretion
extend the time for the grantee, acting in
good faith, to do any act required under
this section. The time for commence-
ment ofconstruction and installation, or
the rendering of service to subscribers,
initially or thereafter, shall be extended
or excused, as the case may be, for any
period during which the grantee experi-
ences delay or interruptions due to any of
the following circumstances if reason-
ably beyond its control: necessary utility
changes or rearrangements, governmen-
tal or regulatory restrictions or require-
ments, labor strikes, lockouts, war
(declared or undeclared), national emer-
gency, fire, earthquake, the elements and
acts of God.
(Lodi 3-86) 86
G. Grantee shall extend cable system
upon request of any contiguous area not
designated for initial service in the plan
when potential subscribers can be served
by extension of the cable system past
dwelling units equivalent to a density of
forty homes per mile of street. Extension
shall be at grantee's cost. If underground-
ing is required by regulation, grantee
must make installation at grantee's
expense. Where aerial extension is
allowed by regulation but underground
installation is requested by benefitted
subscribers, the cost of undcrgrounding
that exceeds the estimated aerial exten-
sion cost may be charged to benefitted
subscribers. (Ord. 1370 § 1 (part), 1985)
5.16.180 Forfeiture and termination.
A. In addition to all other rights and
powers retained by the city under this
chapter or otherwise, the city reserves the
right to forfeit and terminate a franchise
and all rights and privileges of a grantee
in the event of a material breach of its
terms and conditions. In interpreting this
chapter, material provisions shall include
all labeled as such and all others, which,
under all the facts and circumstances
indicated, are a significant provision of
the franchise agreement. A material
breach by grantee shall include but shall
not be limited to the following:
1. Failure to begin or complete system
construction, reconstruction or system
extension, or system improvement as
provided under the franchise;
2. Failure to provide the broad catego-
ries of services promised; assuming
grantee has unsuccessfully pursued what-
ever recourse is available under Section
C
625 of the Cable Communications Policy
Act of 1984;
3. Failure to restore 3:rvice after
ninety-six consecutive hours of inter-
rupted service, except when approval of
such interruption is obtained from the
city; or
4. Material misrepresentation of fact
in the application for or negotiation of
the franchise.
B. The foregoing shall not constitute
material breach if the violation occurs
but it is without fault of a grantee or
occurs as a result of circumstances
beyond its control. Grantee shalt not be
excused by mere economic hardship nor
by misfeasance or malfeasance of its
shareholders, directors, officers, or
C employees.
C. The city may make a written
demand that a grantee comply with any
such provision, rule, order, ordetermina-
tion under or pursuant to this chapter
and franchise agreement. If the violation
by the grantee continues for a period of
thirty days following such written
demand without written proof that the
corrective action has been taken or is
being actively and expeditiously pur-
sued, the city may place the issue of ter-
mination of a franchise before the city
council. The city shall cause to be served
upon grantee at least twenty days prior to
the date of such a council meeting, a
written notice of intent to request such
termination and the time and place of the
meeting. Public notice shall be given of
the meeting and issue which the council
is to consider.
D. The city council shall hear and
5.16.I80
consider the issue and shall hear any per-
son interested therein, and shall deter-
mine in its discretion, whether or not anv_
violation by the grantee has occurred.
E. If the city council shall determine
the violation by a grantee was the fault of
grantee and within its control, the coun-
cil may by resolution declare that the
franchise of the grantee shall be forfeited
and terminated unless there is com-
pliance within such period as the city
council may fix, such period not to be less
than sixty days, provided no opportunity
for compliance need be granted for fraud
or misrepresentation.
F. The issue of forfeiture and termina-
tion shall automatically be placed upon
the council agenda at the expiration of
the time set by it for compliance. The
council then may terminate a franchise
forthwith upon finding that grantee has
failed to achieve compliance or may fur-
ther extend the period in its discretion.
(Ord. 1370 § I (part), 1985)
5.16.190 Security fund.
A. Within thirty days after the award
or renewal of a franchise, a grantee shall
deposit with the city a corporate surety
bond in the amount of fifty thousand
dollars. The bond shall be used to insu,e
the faithful performance by a grantee of
all provisions of this chapter and result-
ing franchise agreement; and compliance
with all orders, permits and directions of
any agency, commission, board, depart-
ment, division or office of the city having
jurisdiction over its acts or default under
a franchise and the payment by the
grantee of any penalties, liquidated
damages, claims, liens and taxes due the
87 (Lodi 3-86)
5.1 6.190
city which arise by reason of the con-
D. The rights reserved to the city with ,
struction. operation or maintenance of
respect to the corporate surety bond are
the system, including cost of removal or
in addition to all other rights of the city
abandonment ofany property ofgrantee.
whether reserved by a franchise or autho-
B. The corporate surety bond shall be
rized by law, and no action, proceeding
maintained at fifty thousand dollars dur-
or exercise of right with respect to such
ing the entire term of a franchise, even if
corporate surety bond shall affect any
amounts have to be withdrawn pursuant
other right the city may have. (Ord. 1370
to subsection A or C of this section. The
§ I (part), 1985)
grantee shall keep the same in force and
effect at all times throughout the exis-'
5.16.200 Construction bond.
tense of the franchise and thereafter until
A. I. Within thirty days after the
grantee has liquidated all of its obliga-
award or renewal ofa franchise, a grantee
tions with the city that may have arisen
shall obtain and maintain at its cost and
from the acceptance of the franchise
expense, and file with the city clerk, a
ordinance by grantee or from the exercise
corporate surety bond in a company
of any right or privilege granted here-
authorized to do business in the state of
under, including the removal of all poles.
California and found acceptable by the
wires, cables, underground conduits,
city attorney, in the amount of five hun-
manholes, and other conductors and fix-
dred thousand dollars to guarantee the
tures incident to the maintenance and
timely construction, rebuild or recon -
operation of itscable system, should such
struction and full activation of the cable
removal be required by city council or
system and the safeguarding of damage
undertaken by grantee upon the term ina-
to private property and restoration of
tion of the franchise.
damages incurred with utilities.
C. If a grantee fails to pay to the city
2. The bond shall provide but not be
any compensation within the time fixed
limited to the following condition: There
herein; or fails after ten days' notice to
shall be recoverable by the city, jointly
pay to the city any taxes due and unpaid;
and severally from the principal and
or fails to repay the city within ten days
surety, any and all damages, loss or costs
any damages, costs orexpenses which the
suffered by the city resulting from the
city is compelled to pay by reason of any
failure of a grantee to satisfactorily com-
act or default of the grantee in connec-
plete construction, rebuild, or recon -
tion with a franchise; or fails after ten
struction and fully activate the cable
days' notice by the city of such failure to
system throughout the franchise area
comply with any provision of a franchise
pursuant to the terms and conditions of
which the city reasonably determines can
this chapter and the franchise agreement.
be remedied by demand on the corporate
B. Any extension to the prescribed
surety bond. The city may immediately
construction time limit must be autho-
require payment of the amount thereof
---rized by the council. Such extension shall
with interest and any penalties from the
be authorized only when the council
corporate surety bond.
finds that such extension is necessary and
(Lodi 346) 88
C
appropriate due to causes beyond the
within the city which has not yet become
control of a grantee.
a public street but is designated or deline-
C. The construction bond shall be ter-
ated as a proposed public street on any
minated only after the council finds that
tentative subdivision map approved by
agrantee has satisfactorily completed ini-
the city, except those installed or erected
tial construction and activation or recon-
upon existing or future public utility
struction of the cable system pursuant to
facilities, without obtaining the prior
the terms and conditions of this chapter
written approval of the director of public
and the franchise agreements.
works and the owner -subdivider.
D. The rights reserved to the city with
C. In those areas and portions of the
respect to the construction bond are in
city where the transmission and distribu-
addition to all other rights of the city,
tion facilities of both the public utility
whether reserved by this chapter or
providing telephone service and those of
authorized by law, and no action, pro-
the utility providing electric service have
seeding or exercise of a right with respect
been or are to be placed underground,
to such construction bond shall affect
then the grantee, upon written request by
any other rights the city may have.
the director of public works so to do, shall
E. The construction bond shall con-
likewise initially construct, install, oper-
Iain the following endorsement:
ate and maintain its transmission and
It is hereby understood and agreed that
distribution facilities underground. For
this bond may not be cancelled by the
the purposes of this subsection, "under -
surety nor the intention not to renew
ground includes a partial underground
be stated by the surety until sixty (60)
system. Amplifiers in the grantee's trans -
days after receipt by the City, by regis-
mission and distribution lines may be in
tered mail, of written notice of such
appropriate housings as approved by the
intent to cancel or not to renew.
director of public works. The city shall
not in any manner be responsible for any
(Ord. 1370 § I (part), 1985)
costs incurred by any grantee in placing
his property underground. (Ord. 1370 § I
5.16.210 Construction practices.
(part), 1985)
A. Any poles, cable lines, wires, con-
duits or other properties of the grantee
5.16.220 Removal or abandonment of
shall be constructed or installed in streets
facilities.
in accordance with good engineering
A. In the event that the use of any part
practice at such locations and in such
of the cable system is discontinued for
manner as is approved by the director of
any reason for a continuous period of six
public works and shall conform to all
months, or in the event such system or
applicable codes and laws.
property has been installed in any street
B. The grantee shall not install or
or public place without complying with
- ---erect any facilities -or -apparatus in or on- -----
----the requirements -of this chapter, -or the -- — -
other public property, places or rights -of-
franchise has been terminated, cancelled
way, or within any privately -owned area
or has expired, the grantee shall
5.16.2'0
promptly, upon being given ten days'
written notice, remove from the streets or
public places all such property and poles
of such system other than any which the
director of public works may permit to be
abandoned in place. In the event of such
removal, the grantee shall promptly
restore the street or other area from
which such property has been removed
to a condition satisfactory to the director
of public works.
B. Any property of the grantee
remaining in place sixty days after the
termination, forfeiture or expiration of
the franchise shall be considered perma-
nently abandoned. The director of public
works may extend such time.
C. Any property of the grantee to be
abandoned in place shall be abandoned
in such a manner as the director ofpublic
works prescribes. Subject to the provi-
sions of any utility joint use attachment
agr--ement, upon permanent abandon-
ment of the property of the grantee in
place, the property shall"become that of
the city and the grantee shall submit to
the director of public works an instru-
ment in writing, to be approved by the
city attorney, transferring to the city the
ownership of such property. (Ord. 1370 §
I (part), 1985)
5.16.230 Changes required by public
Improvements.
The grantee shall, at its expense, pro-
tect, support, temporarily disconnect,
relocate in the same street or other public
place, or remove from the street or other
public place, any property of the grantee
--- --when required -by the director of public
works by reason of traffic conditions,
public safety, street vacation, freeway
(Lodi 346)
and street construction, change or estab-
lishment of street grade, installation of
,•ewers, drains, water pipes, power lines,
signal lines and tracks or any other type
of structures or improvements by public
agencies; provided, however, that the
grantee shall in all such cases have the
privilege and be subject to the obligations
to abandon any property of the grantee in
place, as provided in this chapter. (Ord.
1370 § I (part), 1985)
5.16.240 Failure to complete work.
Upon failure of the grantee to com-
mence, pursue or complete any work
required by law or by the provisions of
this chapter or by its franchise to be done
in any street or other public place, within
the time prescribed, and to the satisfac-
tion of the director of public works, the
director of public works may, at his
option, cause such work to be done and
the grantee shall pay to the city the cost
thereof in the itemized amounts reported
by the director of public works to the
grantee within thirty days after receipt of
such itemized report. (Ord. 1370 § 1
(part), :985)
_ 5.16.250 Insurance.
A. The grantee shall indemnify the
city, its officers and its employees against
all claims, demands, actions, suits and
proceedings by others, against all Iiability
to others, and against any toss, cost and
expense resulting therefrom. including
reasonable attorneys' fees, arising out of
the exercise and enjoyment of its fran-
chise irrespective
ran-chise-irrespective of the amount of the
comprehensive liability insurance policy
required under this section.
88-2
C
s
B. The grantee shall at all times dur-
ing the existence of any franchise issued
under this chapter maintain in full force
and effect, at its own cost and expense, a
general comprehensive liability insur-
ance policy, in protection of the city, its
officers, boards, commissions, agents
and employees, in a company approved
by the city attorney and in a form satis-
factory to the city attorney, protecting
the city and all persons against liability
for loss or damage for personal injury,
death and property damage, occasioned
by the operations of the grantee under
such a franchise, and for property
damage; provided, that the maximum
amount for which liability shall be
assumed, and requirements for the city
being named an additional insured, and
any other insurance requirements shall
be as set and required from time to time
by resolution of the city council. A copy
of such policy or policies, or certificates
of insurance showing the existence of
such insurance coverage, shall be filed by
the grantee with t!l.: city clerk.
C. The policies mentioned in subsec-
tion B of this section shall name the city,
its officers, boards, commissions, agents
and employees, as additional insureds,
shall contain a contractual liability
endorsement approved by the city
attorney and shall contain a provision
that a written notice of any cancellation
or reduction in coverage of such policies
shall be delivered to the city manager
thirty days in advance of the effective
date of the cancellation or reduction.
(Ord. 1370 § 1(part), 1985)
5.16.260 Right of inspection—Plans
apd records.
A._ At all reasonable times, the grantee
5.16.2 50
shall permit any duly authorized repre-
sentative of the city to examine all prop-
erty of the grantee, together with any
appurtenant property of the grantee situ-
ated within or without the city, and to
examine and transcribe any and all maps
and other records kept or maintained by
the grantee or under its control which
deal with the operations, affairs, transac-
tions or property of the grantee in rela-
tion to its franchise. If any maps or
records are not kept in the city, and upon
reasonable request they are not made
available in the city, and if the council
determines that an examination of them
is necessary or appropriate, then all travel
and maintenance expense necessarily
incurred in making such examination
shall be paid by the grantee.
B. The grantee shall prepare and fur-
nish to the director of public works and
the city manager at the times and in the
form prescribed by either of such officers,
such reports with respect to its opera-
tions, affairs, transactions or property, as
may be reasonable, necessary or appro-
priate to the performance of any of the
rights, functions or duties of the city or
any of its officers in connection with the
franchise.
C. The grantee shall at all times make
and keep in the city full and complete
plans and records showing the exact loca-
tion of all cable system equipment
installed or in use in streets and other
public places in the city.
D. When any portion of the cable sys-
tem is to be installed on public utility
poles and facilities, certified copies of the
agreements for such joint use ofpoles and
facilities shall be filed with the director of
public works. (Ord. 1370 § I (part), 1985)
88-3 iwdi 3-ee)
5.16.270
5.16.270 Service standards.
A. A grantee shall put, keep, and
maintain all parts of the system in good
condition throughout the entire fran-
chise period.
B_ Upon termination of service to any
subscriber, a grantee shall promptly
remove all its facilities and equipment
from the premises of such subscriber
upon subscriber's request, unless said
service serves multiple users.
C. Grantee shall render efficient se -.-v-
ice, make repairs promptly, and ini.er-
rupt service only for good cause and for
the shortest time possible. Such intenup-
tions, insofar as possible, shall be pre-
ceded by notice and shall occur during
periods of minimum system use.
D. Grantee shall not allow its cable or
other operations to interfere with televi-
sion reception of persons not served by
grantee, nor shall the system interfere
with, obstruct or hinder in any manner,
the operation of the various utilities serv-
ing the residents of the city.
E. A grantee shall continue through
the term of the franchise to maintain the
technical, operational, and maintenance
standards and quality of service set forth
in this chapter and franchise agreement.
Should the city find, by resolution, that a
grantee has failed to maintain these stan-
dards and quality of service, and should
it, by resolution specifically enumerate
improvements to be made, a grantee
shall make such improvements. Failure
to make such improvements within
forty-five days of such resolution will
constitute a material breach of condition -
for which the remedy of Section 5.16.160
is applicable. (Liquidated Damages.)
(Ord. 1370 § 1(part), 1985)
a.oai 3-86) 88-4
5.16.280 Continuity of service
mandatory.
A. 1. It shall be the right of all sub-
scribers to continue receiving service
insofar as their financial and other obli-
gations to a grantee are honored.
2. In the event ofa change of grantee,
or in the event a new operator acquires
the system, a grantee shall cooperate with
the city, new grantee or operator in main-
taining continuity of service to all sub-
scribers. During such periods, grantee
shall be entitled to the revenues for any
period during which it operates the sys-
tem, and shall be entitled to reasonable
costs for its services when it no longer
or.erates the system.
B. In the event grantee fails to operate
the system for ninety-six consecutive
hours without prior approval of the city
or without just cause, the city may at its
option, operate the system or designate
an operator until such time as grantee
restores service under conditions accept-
able to the city or a permanent operator is
selected. If the city is required to fulfill
this obligation for a grantee, the grantee
shall reimburse the city for all reasonable
costs or damages in excess of revenues
from the system received by the city that
are the result of the grantee's failure to
perform. (Ord. 1370 § i (part), 1985)
5.16.290 Performance evaluation
sessions.
A. The city and a grantee shall hold
scheduled performance evaluation ses-
sions within thirty days of the fourth,
--eighth, twelfth and -sixteenth anniversary
dates ofa grantee's award of the franchise
and as may be required by federal and
state law.
C
B. Special evaluation sessions may be
held at any time during the term of a
franchise at the request of the city or the
grantee.
C. All evaluation sessions shall be
open to the public and announced in a
newspaper of general circulation in
accordance with legal notice. Grantee
shall notify its subscribers of all evalua-
tion sessions by announcement on its
system between the hours of seven p.m.
and nine p.m. for five consecutive days
preceding each session.
D. Topics which may be discussed at
any scheduled or special evaluation ses-
sion may include, but not be limited to,
service rate structures; franchise fee; liq-
uidated damages; free or discounted serv-
ices; application of new technologies;
system performance; services provided;
programming offered; customer com-
plaints; privacy; amendments to this
chapter, judicial and FCC rulings; line
extension policies; and grantee or city
rules. (Ord. 1370 § i (part), 1985)
5.16.290
technology or upgraded facilities. and (2)
provision has been made or will be made
for adquate rates which will allow grantee
a fair rate of return on its investment
(including the investment required to
provide the additional channel and/or
the state-of-the-art technology or
upgraded facilities), and (3) will not
result in economic loss for the grantee,
the city council may order grantee to pro-
vide a specified number of additional
channels and/or specified state-of-the-art
technology or upgraded facilities. With-
out implying any limitations as to other
provisions of this chapter, this section is
deemed a material provision within the
meaning of Section 5.16.180. (Ord. 1370
§ l(part), 1985)
5.16.310 Filings with city.
All matters provided in this chapter to
be filed with the city, unless provided
otherwise in this chapter, shall be filed
with the city manager. (Ord. 1370 § 1
(part), 1985)
5.16300 New developments.
5.16.320 Fiscal report.
A. Subsequent to each performance
The grantee shall file annually with the
evaluation session as set forth in Section
city manager no later than one hundred
5.16.290, the city council shalt have the
twenty days after the end of the grantee's
authority to order public hearing on the
fiscal year, a copy of a financial report
provision of additional channel capacity
applicable to the cable system serving
by grantee or on the inclusion in the
Lodi, or its corporate annual report,
grantee's cable system of "state of the
including an income statement applica-
art" technology or upgraded facilities.
ble to its operation during the preceding
Notice of such hearing shall be provided
twelve-month period, a balance sheet, a
to grantee and the public not later than
statement of its properties devoted to the
thirty days prior to such hearing.
cable system operations, by categories,
B. If after such hearing the city coun-
giving its investment in such properties
cil determines that: (1) there exists a rea-
on the basis of original cost, less applica-
sonable need and demand for additional
ble depreciation, a statement of sources
channel capacity and/or state of the art
and application of funds: and a statement
88-5 (Lodi 3-96)
5.16.320
of current subscriber and penetration
reached for each class of cable service.
These reports shall be certified as correct
by an authorized officer of grantee and
there shall be submitted along with them
such other reasonable information as the
city shall request. (Ord. 1370 § I (part),
1985)
5.16330 Refusal of service.
Subject to Section 5.16.110, no person
or entity in the existing service area of the
grantee shall be arbitrarily refused serv-
ice; provided, however, that the grante
shall not be required to provide service to
any subscriber who does not pay the
applicable connection fee or monthly
service charge or any other charges as
provided by this chapter or any resolu-
tion granting the franchise. (Ord. 1370 § I
(part), 1985)
5.16.340 Service contract.
A. Before the grantee shall provide
antenna service to any subscriber, the
grantee shall obtain a signed contract
from the subscriber containing a provi-
sion substantially as follows:
Subscriber understands that in provid-
ing antenna service (Grantee) is mak-
ing use of public rights-of-way and that
the continued use of these public
rights-of-way is in no way guaranteed.
In the event the continued use of such
rights of way is denied to (Grantee) for
any reason, (Grantee) will make every
reasonable effort to provide service
over alternate routes. Subscriber
agrees he will make no claim nor
undertake any action against the City
of Lodi, its officers, its employees, or
(Lodi MO 88-6
(Grantee) if the service to be provided
by (Grantee) hereunder is interrupted
ordiscontinued because the continued
use of such rights of way is denied to
(Grantee) for any reason.
B. The form of the grantee's contract
with its subscribers, shall be subject to
approval of the council with respect to
the installation of this provision. (Ord.
1370 § I (part), 1985)
5.16350 Television sale or repair.
The grantee or any of its employees
during their course of employment shall
not engage in the business of selling or
leasing television or other receivers
which make any use of signals transmit-
ted by its system, nor shall the grantee or
any of its employees during the course of
their employment engage in the repair of
such receivers or the sale of parts for the
same. This restriction shall not apply to a
converter that increases the capacity of
the system that may be sold or leased by
the grantee to a subscriber. (01 d. 1370 § 1.
(part), 1985)
5.16.360 Free service.
The grantee shall provide free of
charge a service drop for cable service for
all public and nonprofit private schools,
city police and fire stations, city recrea-
tion centers, and any additional munici-
pal buildings designated by the city
council; provided, such locations are
passed by transmission cable maintained
for the service of paying subscribers. If
the service drop exceeds one hundred
fifty feet, the grantee may charge for the
excess footage on the basis of time and
materials. (Ord. 1370 § f (part), 1985)
5.16.370 Moving of buildings.
The grantee shall, on the request of
any person holding a building moving
permit issued by the city, temporarily
raise or lower its wires to permit the mov-
ing of buildings. The expense of such
temporary removal or raising or lowering
of wires shall be paid by the permittee.
The grantee shall be given not less than
five working days advance notice to
arrange for such temporary wire changes.
(Ord. 1370 § 1 (part), 1985)
5.16.380 Unauthorized connections—
Tampering.
A. It is unlawful for any person, firm
or corporation to make any unautho-
rized connection. whether physically,
acoustically, inductively, electronically
or otherwise, wiih any part of a fran-
chised cable s�-tem within the city for the
purpose of taking or receiving television
signals, radio signals, pictures, programs,
sound or electronic impulses ofany kind
for the purpose of enabling himself or
others to receive any such television sig-
nal, radio signal, picture, program, sound
or electronic impulses.
B. It is unlawful for any person, with-
out the consent of the grantee, to wilfully
tamper with, remove, obstruct or injure
any cables, wires, devices or equipment
used for the distribution of television sig-
nals, radio signals, pictures, programs,
sound or electronic impulses ofany kind.
(Ord. 1370 § I (part), 1985)
5.16.390 Transfers and assignments.
A. I. A franchise shall not be sold,
assigned or transferred, either in whole or
in part, or leased, sublet, nor shall title
thereto, either legal or equitable or any
88-7
5.16.370
right, interest or property therein, pass to
or vest in any person without the prior
written consent of the city. Such consent
shall not be withheld unreasonably.
2. No such consent shall be required
for a transfer in trust, mortgage, or other
hypothecation as a whole or in part to
secure an indebtedness.
3. The proposed assignee must show
technical ability, financial capability,
legal qualification and general character
qualifications as determined by the city
and must agree to comply with all provi-
sions of the franchise and such condi-
tions as may be prescribed by council
expressed by resolution. City shall be
deemed to have consented to a proposed
transfer or assignment in the event its
refusal to consent is not communicated
in writing to grantee within one hundred
twenty days following receipt of written
notice of the proposed transfer or assign-
ment.
B. The grantee shall promptly notify
the city ofany actual or proposed change
in or transfer of, or acquisition by any
other party of, control of the grantee. The
word "control' as used herein is not lim-
ited to major stockholders but includes
actual working control in whatever man-
ner exercised. Every change, transfer, or
acquisition of control of the grantee shall
make the franchise subject to cancella-
tion unless and until the city shall have
consented thereto, which consent will
not be unreasonably withheld. For the
purpose of determining, whether it shall
consent to such change, transfer or
acquisition of control, the city may
inquire into the qualifications -of the pro- ----- -
spective controlling party and the grantee
shall assist she city in any such inquiry.
MADdi 3-86)
yam:;
M13,19•1
C. A rebuttable presumption that a
transfer of control has occurred shall
arise upon the acquisition or accumula-
tion by any person or group of persons of
ten percent of the voting interest of the
grantee.
D. The consent or approval ofthe city
council to any transfer of the franchise
shall not constitute a waiver or release of
the rights of the city in and to the streets,
and any transfer shall by its terms, be
expressly subject to the terms and condi-
tions of a franchise.
E. In any absence of extraordinary
circumstances, the city will not approve
any transfer or assignment of a franchise
prior to substantial completionof con-
struction or reconstruction of proposed
system.
F. In no event shall a transfer of
ownership or control be approved with-
out successor in interest becoming a sig-
natory to the franchise agreement. (Ord.
1370 § I (part), 1985)
5.16.400 Access channels.
A. Each cable system franchised by
the city shall provide at least one channel
dedicated to access for use by the public
as well as governmental and educational
agencies.
B. If the access channel is being uti-
lized more than eighty percent of the
time between four p.m. and eleven p.m.
for twelve consecutive weeks, grantee
shall, upon written notice from the city,
make additional community access
channel(s) available for the same pur-
pose(s), with a maximum of three com-
munity access channels to be dedicated
for these said purpose(s).
C. Nothing in this section shall
(Lodi 3-86)
88-8
require grantee to construct additional
channel capacity to the system for the
sole purpose of providing additional
access channels.
D. Whenever any access channel is
utilized less than four hours per day for
six days per week for twelve consecutive
weeks, the grantee may be permitted to
utilize unused access channel capacity
for different and additional purposes,
under rules and procedures established
by the city.
E. Grantee shall record all requests for
use of access channel. Whenever such
records indicate in the opinion of the city
council that an excessive number of peo-
ple or programs are being turned away
for lack of available access channel
capacity; or whenever the criteria in sub-
section B are exceeded for any one of the
existing access channel uses, those access
channels which have been permitted by
the city for "interim" use by a grantee
shall each be restored to public, govern-
mental or educational use as applicable.
(Ord. 1370 § 1 (part), 1985)
5.16A10 Waivers.
A. Any provision of this chapter may
be waived at the sole discretion of the city
by resolution of the cit, council.
B. Grantee may submit a request for
waiver to the city council at any time
during the franchise term. Such request
for waiver may, at the sole discretion of
the city council, be set for public hearing
and a decision shall be made within one
hundred and twenty days following the
submission. Procedures for modification
of franchise obligations shall be in com-
pliance with Section 625 of the Cable
Communications Policy Act of 1984.
-5.16.410
C. The city council may authorize the
shall have the right to review any sub -
economic, technical or legal evaluation
stitution of service or change in broad
of such waiver requ, .:t and grantee shall
categories of programming that the
be required to reimb.)-se the city for any
grantee has made and may order a
expenditures incurred by city in connec-
change therein if it determines, after due
tion with such evaluation,
hearing on notice, that the warranty has
D. This section is enacted solely for
been violated or that certain broad tate-
the convenience and benefit of the gran-
gories of programming and services that
for and shall not be construed in such a
were committed by grantee in its pro -
manner as to create any right or entitle-
posal are not being delivered. Any such
ment for the grantee. (Ord. 1370 § 1
order shall issue only after a public hear -
(part), 1985)
ing has been scheduled and held: and
written notice of such hearing shall have
5.16.420 Required services and
been provided to the grantee and to the
facilities.
public at least thirty days prior to such
A. A franchise application shall
hearing. Any such order may be enforced
include a description of the grantees sys-
by an appropriate action in the courts of
tem design and a description of the broad
California or of the United States. A
categories of programming and services
'grantee shad not, in relation to this sec -
being offered, including optional pre-
tion, be deemed to have waived any right
mium services, a description of facilities
accorded to a franchised cable television
being proposed for local origination pro-
operator arising under the f=irst Amend-
gramming, and facilities being offered to
ment to the Constitution of the United
various community institutions. The
Slates, or under the Cable Communica-
offer of the broad categories of program-
tions Policy Act of 1984.
ming and services contained within a
C. Nowithstanding subsections A and
grantee's application shall be deemed a
B, a grantee may, in accordance with the
binding offer of such grantee for and to
Cable Communications Policy Act of
the benefit of the city and the subscribers
of grantee. In the event a program origi-
1984, upon thirty days' advance notice to
natorceases to provide a service, or in the
the city, rearrange, replace or remove a
event the grantee determines that other
particular cable service required by th,_
cable services may be ofgreater benefit to
franchise if.
subscribers, the grantee may, subject to
I. Such service is no longer available
subsections B and C, substitute or drop
to the grantee; or
such services.
2. Such service is available to the
B. The system, after the inorporation
grantee only upon the payment of a roy-
of such substitute services, shall satisfy
alty required under Section 801(bx2) of
the warranty made by grantee to sub-
Title 17, United States Code, which the
scriber and potential subscriber in its
grantee can document:
application for a franchise. The city
a. Is substantially in excess of the
council, on behalf of system subscribers,
amount of such payment required on the
`
88-9 (Lodi 3-96)
5.16.420
date L. the grantee's offer to provide such
service, and
b. Has not been specifically compen-
sated for through a rate increase or other
adjustment.
D. Notwithstanding subsections A
and B, a grantee may take such actions to
rearrange a particular service from one
service tier to another, or otherwise offer
the service, if the rates for all of the serv-
ice tiers involved in such actions are not
subject to regulation. (Ord. 1370 § I
(part). 1985)
5.16.430 Construction and technical
standards.
A. Compliance with Construction
and Technical Standards. Grantee shall
construct, install, operate and maintain
its system in a manner consistent with all
laws, ordinances and construction stan-
dards of the city; the standards of Good
Engineering Practices for Measurements
on Cable Television System, published
by the National Cable Television Asso-
ciation,1983; and detailed standards sub-
mitted by grantee as part of its
application, which standards are incor-
porated by reference in the franchise
agreement. In addition, grantee shall pro-
vide the city, upon request, with a written
report of the results of grantee's annual
proof of performance tests. In the event
of the repeal of FCC Rules and Regula-
tions, Part 76, grantee shall pay the costs
incurred by the city for any technical
assistance deemed necessary by the city
for obtaining independent verification of
technical compliance with all standards.
This includes the costs that may be
(Lodi 3-86) 88-10
incurred by the city for checking com-
pliance during the evaluations required
in Section 5.16.290.
B. Additional Specifications.
1. Construction, installation and
maintenance of the cable system shall be
performed in an orderly and work-
manlike manner. All cables and wires
shall be installed, where possible, parallel
with and in the same manner as electric
and telephone lines. Multiple cable con-
figurations shall be arranged in parallel
and bundled with due respect for
engineering considerations. Under-
ground installations shall be in confor-
mance with applicable codes.
2. Grantee shall at all times comply
with.
a. National Electrical Safety Code
(National Bureau of Standards);
b. National Electrical Code (National
Bureau of Fire Underwriters);
c. Bell System Cade of Pole Line Con-
rruction; and
d. The Standards of Good Engineer-
ing Practice for Measurements on Cable
Television Systems (National Cable Tele-
vision Association), 1983.
3. Furthermore, the system shall not
endanger or interfere with the safety of
persons or property in the franchise area
or other areas where the grantee may
have equipment located. (Ord. 1370 § I
(part), 1985)
a
5.16.390
j
C. A rebuttable presumption that
require grantee to construct additional
transfer of control has occurred shall
channel capacity to the system for the
arise upon the acquisition or accumula-
sole purpose of providing additional
tion by any person or group of persons of
access channels.
ten percent of the voting interest of the
D. Whenever any access channel is
grantee.
utilized less than four hours per day for
D. The consent or approval of the city
six days per week for twelve consecutive
council to any transfer offfthe franchise
Z7e,
weeks, the grantee may be permitted to
shall not constitute a or release of
utilize unused access channel capacity
_
the rights of the city in and to the streets,
for different and additional purposes,
and any transfer shalt by its terms, be
under rules and procedures established
expressly subject to fie terms and condi-
by the city.
tions of a franchis.
E. Grantee shall record all requests for
E. In any absence of extraordinary
use of access channel. Whenever such
circumstances,Ae city will not approve
records indicate in the opinion of the city
any transfer gr'assignment of a franchise
council that an excessive number of peo-
prior to su tantial completion of con- _
_ple or programs are _being turned away --
r reconstruction of proposed
for lack of available access channel
capacity; or whenever the criteria insub-
event sha1I a transfer of
section B are exceeded for any one of the
or control be approved with-
existing access channel uses, those access
. or in interest becoming a sig-
/bry
channels which have been permitted by
e franchise agreement. (Ord.
the city for "interim" use by a grantee
rt), 1985)
shall each be restored to public, govern-
mental or educational use as applicable.
5.16.400 Access channels.
(Ord. 1370 § 1 (part), 1985)
A. Each cable system franchised by
the city shall provide at least one charnel
5.16.410 Waivers.
dedicated to access for use by the public
A. Any provision of this chapter may
as well as governmental and educational
be waived at the sole discretion of the c
agencies.
by resolution of the city council. er
B. If the access channel is being uti-
B. Grantee may submit a request for
lized more than eighty percent of the
waiver to the city council al -an y time
time between four p.m. and eleven p.m.
during the franchise term.•Such requcst
for twelve consecutive weeks, grantee
for waiver may, at the.sole discretion of
shalt, upon written notice from the city,
the city council, beset for public hearing
make additional community access
and a decision sball be made within one
channel(s) available for the same pur-
hundred and,t<`venty days following the
'
pose(s), with a maximum of three com-
submissiojilProcedures for modification
munity access channels to be dedicated
of frau ise obligations shall be in com-
for these said purpose(s).
pliapce with Section 625 of the Cable
C. Nothing in this section shall
C munications Policy Act of 1984.
_
(Lodi }86)
88-8
41
C5.16.410
C. The city council may authorize the
shall have the right to review any sub -
economic, technical or legal evaluation
stitution of service or change in broad
of such waiver request and grantee shall
categories of programming that the
be required to reimburse the city for any
grantee has made and may order a
expenditures incurred by city in con nec-
change therein if it determines, after due
tion with such evaluation.
hearing on notice, that the warranty has
D. This section is enacted solely for
been violated or that certain broad cate-
the convenience and benefit of the gran-
gories of programming and services that
for and shall not be construed in such a
were committed by grantee in its pro- ,
manner as to create any right or entitle-
posal are not being delivered. Any such
ment for the grantee. (Ord. 1370 § 1
order shall issue only after a public hear -
(part), 1985)
ing has been scheduled and held; and
written notice of such hearing shall have
5.16.420 Required services and
been provided to the grantee and to the
facilities.
A. A franchise application shad
public at least thirty days prior to such
_
include descption a riof the grantee's sys-
hearing. Any such order may be enforced
tem design and a description of the broad
by an appropriate action in the courts of
categories of programming and services
California or of the United States. A
being offered, including optional pre-
-grantee shall not, in relation to this sec-
mium services, a description of facilities
tion, be deemed to have waived any right
being proposed for local origination pro-
accorded to a franchised cable television
gramming, and facilities being offered to
operator arising under the First Amend -
various community institutions. The
ment to the Constitution of the United
I
offer of the broad categories of program-
States, or under the Cable Communica-
i
ming and services contained within a
tions Policy Act of 1984.
grantee's application shall be deemed a
C. Nowithstanding subsections A and
binding offer of such grantee for and to
B, a grantee may, in accordance with the
the benefit of the city and the subscribers
Cable Communications Policy Act of
of grantee. In the event a program origi-
1984, upon thirty days' advance notice to
natorceases to provide a service, or in the
the city, rearrange, replace or remove a
event the grantee determines that other
particular cable ser rice required by the
cable services may be ofgreater benefit to
franchise if:
subscribers, the grantee may, subject to
1. Such service is no longer available
subsections B and C, substitute or drop
to the grantee; or
such services.
2. Such service is available to the
B. The system, after the inorporation
grantee only upon the payment of a toy -
of such substitute services, shall satisfy
alty required under Section 801(b)(2) of
the warranty made by grantee to sub-
Title 17, United States Code, which the
scriber and potential subscriber in its
grantee can document:
application for a franchise. The city
a. Is substantially in excess of the
(
council, on behalf of system subscribers,
amount of such payment required on the
88-9
(Lodi sss)
41
t
5.I6.420
date of the grantee's offer to provide such
service, and
b. Has not been specifically compen-
sated for through a rate increase or other
adjustment.
D. Notwithstanding subsections A
and B. a grantee may take such actions to
rearrange a particular service from one
service tier to another, or otherwise offer
the service, if the rates for all of the serv-
ice tiers involved in such actions are not
subject to regulation. (Ord. 1370 § 1
(part), 1985)
5.16.430 Construction and technical
standards.
A. Compliance with Construct n
and Technical Standards. Grantee`s all
construct, install, operate and mdintain
its system in a manner consistent with all
laws, ordinances and construction stan-
dards of the city; the standards of Good
Engineering Practices for kleasurements
on Cable Television System, published
by the National CableAelevision Asso-
ciation,1983; and de jailed standards sub-
mitted by grantte as part of its
application, whi eh' standards are incor-
porated by reference in the franchise
agreement. In addition, grantee shall pro-
vide the city, upon request, with a written
report of tV results of grantee's annual
proof of performance tests. In the event
of the ree of FCC Rules and Regula-
tions. P rt 76, grantee shall pay the costs
incu56d by the city for any technical
assns nce deemed necessary by the city
for btaining independent verification of
V,nical compliance with all standards.
is includes the costs that may be
(Lodi 3.86)
incurred by the city for checking corA-
pliance during the evaluations required
in Section 5.16.290.
B. Additional Specifications.
1. Construction, installation and
maintenance of the cable system'shall be
performed in an orderly acid work-
manlike manner. All cablestand wires
shall be installed, where possible, parallel
with and in the same manner as electric
and telephone lines. Multiple cable con-
figurations shall be arranged in parallel
and bundled with giie respect for
engineering conside=rations. Under-
ground installations fliall be in confor-
mance with applicabae codes.
2. Grantee shall at all times comply
with: / -
.. a. National Electrical Safety Code
(National Bureau of Standards);
b. National Electrical Code (National
Bureau of Fire j nderwriters);
e. Bell System Code of Pole Line Con-
struction; and;'
d. The Standards of Good Engineer-
ing Practice for Measurements on Cable
Television Systems (National Cable Tele-
vision Association), 1983.
3. Furthermore, the system shall not
endanger or interfere with the safety of
persons or property in the franchise area
or other areas where the grantee may
have equipment located. (Ord. 1370 § I
(part), 85)
Chapter 5.20
P NVNBROKERS, JUNK AND
SECONDHAND DEALERS
Se ions:
.20.010 Definitions.
88-10
0
C
WA u
This Proposal* is
on file in the
City Manager's
office.
Proposal dtd:2-25-86
* (apprcximately
250 pages)
A Cable Television Proposal for the
0
Community of
LODI-CALIFORIA
King Videocable Company
1521 South Stockton Street
Lodi, California 95.240
(209) 369-7451
CITY COUNCIL C
FRED M REID. Mayor CITY O F TO[� T
EVELYN M OLSON i.� �✓ JL
Mayor Pro Tempore CITY HALL, 221 WEST PINE STREET
DAVID M. HINCHMAN CALL BOX 3006
JAMES W. PINKERTON. Jr. LODI. CALIFORNIA 95241-1910
JOHN R- (Randy) SNIDER (209) 334-5634
August 5, 1986
Mr. Richard D. Shay
Vice President, Planning & Operations
King Videocable Cmipany
1521 South Stockton Street
Lodi, CA 95240
Dear Dick:
yTHOMAS A PETERSON
City Manager
ALICE M. REIMChE
City Clerk
RONALD M STEIN
City Attorney
The City has carpleted its review of King Videocable Carpany's response to
our Request for Proposal (RFP). We have been assisted in this review via
our contract for professional services with OTIC Associates.
As you are aware, the Cable Co mauiications Act of 1984 authorizes the City
to make whatever requirements it feels are necessary with respect to
system design,
facilities and equipment. In thisregard, we believe there
are a number ofPo ints made in the evaluation which merit your attention
and response. These are:
There must be sane discussion on how and under what circumstances
channel capacity can be expanded from 35 channels to 54 or 60 -channel
capacity. The City would like to discuss with King Videocable what
would "trigger" such an increase in capacity. Perhaps there should be
same language in the ordinance providing for such a "trigger".
Language on Page 3, Exhibit 2 of the King Videocable response reserves
to the company the final authority concerning program suitability for
access channels. We are advised that the Cable CcalImrdoations Policy
Act of 1984 gives the City the authority to establish its rules with
respect to use and development of the access channels, and that the
cable operator shall not have any editorial control over any public,
educational or govenm not use of channel capacity.
On pages 12 and 16 there is language that the ccapany's offer of
service and rates "does not constitute a warranty" for the City and
cable customers. This appears to qualify the proposal so as to nullify
the intent of Lodi Municipal Code Section 5.16.420 (Cable ordinance
attached) which requires in part: "...a description of grantee's system
design and a description of the broad categories of programaing and
services being offered, including optional premium services, a
description of facilities being proposed for local origination.
proyrasrming, and facilities being offered to various canmunity
„_ EXHIBIT C
Richard D. Shay
August 5, 1986
Page 2
institutions. The offer of the broad categories of programming and
services contained within a grantee's application shall be deemed a
binding offer of such grantee for and to the benefit of the City and
the subscribers of grantee." The Executive Summary on page 12 and 16 of
the RFP submitted by King Videocable should in fact refer to this
language.
We note that King Videocable has stated that "No emergency alert system
is included in the design of the system, however, such services can be
added to the system should it become necessary". Section 6.(f) of the
City's RFP requires an emergency audio override system. This is an
emergency system which can be readily activated during public
emergencies. This feature should be made available to the City and its
resident during the system rebuild, as stated in the RFP.
Distribution System Design/Channel Capacity - It appears the cchq:emy
is being inconsistent in describing the exact specifications of the
system. In responding to technical questions, King Videocable refers
to a bandwidth of 450 MHz, while in the onset of the proposal the
y reference is to a 440 Mz bandwidth. All electronics and passives, as
installed, must be capable of passing 450 MHz.
Distribution System/Service Area - The City required the service area
to be defined or show the service areas that would receive service
initially and those areas that would receive service after initial
construction. King Videocable has submitted its map showing three
separate construction phases. This map shows the City limits as they
essentially exist today. There should be language in the RFP which
addresses construction in newly annexed and developed areas.
Subscriber Service/Pare.~ital Control - ring Videocable has not directly
stated that a parental control device would be available, although it
is so stated in the technical forms. The City's position is that the
parental control device is required as well as a device which would be
put on the system outside the hcme to keep out certain channels and that
King Videocable should provide more information as to how the trap will
be made available to the subscriber, i.e., for sale, lease or free of
charge.
Addressable Converters - We understand that there are two different
types of converters: One is an addressable converter for the delivery
of subscriber services. It allows the operator to change the level
of authorized service without requiring an on-site service call. The
second is the programmable converters which King Videocable has
proposed. With this converter, it is necessary for the subscriber or
serviceman to exchange the converter or have it re -programmed at the
cable ccmpany office. It appears that King Videocable has not met the
required addressable technology in its proposal in this regard.
Richard D. Shay
August 5, 1986
Page 3
Further, the company will probably scramble those channels on its
expanded entertainment service. For pay service subscribers, a
converter/descrambler will be necessary. This may cause some confusion
to subscribers. It would seem appropriate that the company develop a
strong informational and educational program to alert subscribers to
the changes.
. We would appreciate learning whether or not any old or existing
equipment will be used in the system rebuild.
. How will the new system be constructed? Will it be constructed in
such a way as to be attached directly to the old system as a support
mechanism, or will the company be temporarily moving the old system
prior to installing the new? Will the old system remain on the poles
after reconstruction or will the old system be scrapped?
. Capital Expenditures - We note that no funds have been budgeted for
program origination equipment after 1985 other than $25,000 for studio
equipment in 1991. We would appreciate clarification as to how the
company plans to provide the equipment listed in its proposal ($55,388).
Access Facilities and Community Programming - The City has required
three channels dedicated for public access, educational access, and
government access. King Videocable responded by offering one composite
channel and reserving two channels for future use. Municipal Code
section 5.16.400 (attached) requires a franchise to provide at least
one channel dedicated for access and the City's specification required
three channels. Technically the company has offered at least three
access channels but will only activate one channel initially. How will
these channels be "guaranteed"?
.. King Videocable also did not describe how it plans to provide
commercial leased access channels required under the Cable
Commmnications Policy Act. Further, how will King Videocable make
available facilities and staff for these local access channels at'a
mi.nimtmi of 15 hours per week and also, how does the company plan to
enhance the quality of programming from City Hall. King Videocable has
stated that the studio will be available, but that the equipment listed
will not be available to access users.
In the City's RFP, we said that we wanted a character generator system
with two remote keyboards/19" color monitors installed for use by the
City and school system. King Videocable did not address such a system
in its proposal.
Richard D. Shay
August 5, 1986
Page 4
It is entirely possible that sane of the matters enumerated herein may be
covered in King Videocable's submittal and may have been inadvertently
overlooked. We will appreciate your bringing these to our attention.
We have this matter scheduled for a City Council work study session
August 26, 1986. I feel it would be beneficial for us to review our
cam ents prior to that meeting. If that date is inconvenient, we can
always work around it.
I look forward to discussing this with you in the near future.
Sincerely,
Thomas A. Peterson
City Manager
TAP/br
attachments
cc: Deanna Enright
i
L:+9JAMW
r .S 1 S S!CCkfon
:, egeocabl2 Company I Ct , Ca0orn:a
209;369 745'
An Affil:ate of Kax; Brox cast,no Company
August 9, 1986
Tom Peterson
City Manager
City of Lodi
221 West Pine Street
Lodi, CA 95240
Dear Tom:
We are pleased to respond to your August 5 letter and comments on our
proposal for franchise renewal. The proposal, because of its size and
complexity, has areas that we can clarify as you have requested. In order
to keep our comments in some sort of order we have numbered the questions
you raised in your letter.
1. Channel capacity:
The new system will be designed and constructed using equipment and
methods now considered the state of the art for cable TV. Upon completion
of the rebuild our system can immediately accommodate up to 60 television
channels. We will not be upgrading the system to only 35 channels with
the thought of later upgrading the system again to 60 channels.
2. Authority for Access channels:
Control over programming content on access channels is restricted with
respect to er.itting Feceral'and State law concerning obscenity, violation
of copyrights, advertisement of a lottery, or commercial content. We feel
these restrictions are our responsibility as a cable operator and we
should maintain the right to reject programming that violates these laws.
However, we are in no way attempting to restrict the City's rights and
obligations concerning the use and development of the access channels. We
developed the Local Access Rules and Procedures (Exhibit 2) in rzsponse
to Section D. ,question 1, of the City's RFP. We feel these rules fill a
present void concerning the operation of the local access Channel; -:nci the
City's RFP prompted us to do something we should have done years ag_._ If
the City Council would like to have new rules prepared we will we1C.----?
your involvement in this are,. It is not our desire to exercise eri::nrial
control over the PEG channel=..
E} 9IBIT D _
A Warrantv'7:
We are unable to warrant and guarantee programming as ;t is o*ten times
not within our control.. As Section 5.16.42Ii) of the Lodi Municipal Code
states, "In the event a program originator ceases to provide a service, or
in the event grantee determines that other cable services may be of
greater benefit to subscribers, the grantee may, subject to subsections B
and C, substitute or drop such services."
In compliance with Section 5.16.42, King proposes to provide the following
broad categories of programming: educational, religious, children's, news
sports, entertainment, and Public, Educational, and Governmental Access.
Initially, we intend to address these broad categories of programming
through the specific services set forth on pages 1-2, Section III, of our
proposal. ring Videocable Company retains its editorial discretion to
alter this channel lineup at any time so as to be able to respond to
changing customer needs and interests.
4. Emergency alert system:
Our cable system serves less than 50% of the homes within Lodi. Given the
number of years we have been trying to increase this number, we do not
feel that we will ever serve much more than one half of "he households in
Lodi. At the time of an emergency other media - radio, broadcast TV, even
newspapers, would reach more people than cable TV.
King and the City have had a very close working relationship in times of
emergency. The most recent example is last spring's flooding. We opened
our studios and cable system to the City's emergency team. Our employees
actively supported the City's efforts. The American Fed Cross and other
outside emergency groups used the resources of King to communicate with
Lodi residents. We believe this spirit of cooperation is a more practical
answer to the City's needs. In addition, information could appear on the
City's access channel as you will have control of that channel at City
Hall.
However, we recogni--e the city's disire to provide an emergency alert
system. We have looked into an audio only over -ride system. This
equipment would provide an instantaneous over -ride of all channels.
Information provided would tell viewers to turn to another channel or
would give actual instructions to follow. The acost of this system is
approximately $10,000. We are concerned about the effectiveness of a
cable -based alert system. We respectively request that the city council
not require this feature for the city's new cable system.
5. System design and capacit
Our proposal was inconsistent in this area. The new system will be
designed and constructed using equipment and methods that will assure a
forward bandwidth of 450MHz.
6. Construction in newly annexed areas:
King Videocable Company has expanded its system as the city has grown over
the last 18 years. We intend to continue to serve all areas of the city
when it expands and is economically feasable for us to extend the cable
system. In compliance with the City's RFP, our line e:;tension policy is
to extend the system whenever density of homes passed per street mile of
system would equal 40 homes. Please see page 1, Section VII of our
proposal.
7. Subscriber service/parental control:
Pursuant to Section 624 of the Cable Act, parental control key lock
equipment is available, for purchase at our cost, to control viewing of
channels a customer subscribes to, but wishes to restrict. Signal traps
are available without charge, upon customer request, to eliminate signals
the customer does•not subscribe to and does not desire to be audible
although such signals are already in a scrambled mode. Signal traps and
key lock equipment are available now and will continue to be available.
S. Addressable converters:
Addressable converters are not proposed at this time. We do not feel it
is the solution to customer convenience given the current incompatibility
of television sets, VCRs, and cable TV equipment in the home. The
proposed system requires no converter for basic customers with cable
compatible sets (those able to tune beyond channel 13). We expect our
expanded basic service not to require a converter and only those customers
without cable compatible sets and premium service customers will need to
have converters.
Addressability is a feature that is a convenience for only a small groud
of customers for 1 type of transaction - a change in existing pay services
to a different combination of pay services. Currently we have more than
3200 customers with pay services. Of those customers, less than 70 change
their pay services during ar average month. With 9400 total customers,
less than 1% would benefit monthly from addressability. Installation of
new customers, disconnecting, and other types of changes in services would
still require the customer to come into our sales office or for ttm to send
an employee to the customer's home. We do more than 70o of thcAe
transactions during an average month.
Addressability would cost in excess of $450,000 for 3-200 customers.
9. Old equipment:
The system will be rebuilt utilizing existing 1/4" steel strand for
supporting cable in overhead areas and will use existing conduit in
underground areas: All cable and equipment will be replaced with new
cable and equipment except in areas built within the last 3 years that
already meet the new specifications.
lo. New system construction:
Because Lodi has approximately 70% backyard ea ements we want to be
sensitive to property owners' concerns. Normal construction is done in a
step by step fashion. The old plant is removed. New cable is lashed to
the strand. New electronic equipment is spliced onto the cable. The new
system is tested and balanced, and finally the customer drop is changed
over to the new system. These steps can mean 6 separate times
construction crews enter propertv, with long delays of service for the
customer. We propose to do all steps in one operation, working on a small
section each day so that most property is entered only once. Service is
off for that small section only. 1 day and is back: on, construction
complete. at the erd of the day. In areas where trunk lines are being
built old truni% will be lowered on the poles, but will remain active until
the new section of trunk is rebuilt. The old trunk will then be removed.
All of the old cable and equipment will be removeo and scrapped.
11. Capital expenditures:
This area of our proposal is also confusing and we will try to clarify for
you our proposed program origination equipment plans. In fact we are not
proposing to purchase any new equipment or facilities for local access and
local origination. Since you have recently toured our new facilities on
South Stockton Street, you are aware of the major expenditures King has
made this past year to upgrade our studio facilities and production
capabilities. This renewal process has taken a little longer than anyone
anticipated and we felt that we could not wait until after renewal to
upgrade our equipment and facilities. So we went ahead before renewal.
The Financial Information Forms, Section VI, show that King spent 4:148,444
upgrading our program origination equipment and facilities in 1985-1986.
This included $34,444 for remote production capabilities. The proposal
details the actual equipment and facilities already in place to better
serve Lodi. The equipment is in use today and we hope you have already
seen a major improvement in the picture quality of our public access and
local origination work.
12. Access channels:
We felt that we had responded to the City's regulatory ordinance by
proposing one combined channel for public, educational, and governmental
access. Section 5.16.444 of the Lodi Municipal Code provides a process by
which additional channels will be acti—ted. However, if the city desires
and is prepared to use a channel, Kin.j Videocable Company can provide a
f ulltime access channel for the city's use as soon as channel capacity has
been expanded with the rebuild. Further, we could provide the necessary
modulator, demodulator, character generator, and monitor so that
information can be provided to our customers directly from City Hall at
any time. This channel would also be used to broadcast city council
meetings and other programming originating at city hall. Further,
facilities are planned at Hutchins St. Square so that programming may also
originate there for the city's channel. We will continue to program an
access channel from our building.
13. Leased access:
Section 612 of the Federal Cable Act spells out very specifically
commercial leased access requirements. King intends to folly comply with
the requirements of this Federal law.
� � r
14. Available facilities:
The current lack of requests for local access in Lodi is a reflection of
the very low interest in this area. Currently our building is staffed for
access from 8:00am to 10:00pm, Monday through Friday. Access equipment
and facilities are available during much of that time. Equipment listed
is available for access within the studio. Community access users may
also be loaned equipment to use outside the building. The quality of
programming at City Mall is primarily related to the Council Chambers
themselves. Since new Chambers are being planned with telecasting in
mind, the concerns with the quality of programming should be resolved.
15. Character generators:
Character generators can be made available upon request for the city and
the school system. Please see our comments under item 12. Monitore: are
normally 9-11" (19" is too large for this purpose) and can also be
provided.
We look forwaro to discussing these issues prior to the September 16 work
session and hope that our response has answered your concerns. Our goal
is always to provide quality service with a variety of programming choices
for the customer. Section V in our proposal outlines our policy for
response to routine service calls, installation problems, outages, and
response after hours. All of our staff receive specific training in
meeting our customer service goals. Section 5.16.140 of Ordinance 1370
gives very strict operating procedures for us to follow. Both the
customer and the city have recourse to resolve problems. Customer service
will continue to be our highest priority.
Sincerely,
Deanna Enright
General Manager -Lodi
Richard D. Shay
Vice President, Planning & Operations