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Item 7B&8A AGENDA ITEM 7B&8A MAY 22, 2006 CITY OF ATLANTIC BEACH CITY COMIVIISSION MEETING STAFF REPORT ~„ AGENDA ITEM: Second Reading and Adoption of Ordinance No. 40-06-21 Creating Rules for Cable Television Franchises and Approval of Franchise Renewal Agreement for Cable System with Comcast of ^ Greater Florida/Georgia Inc. SUBNIITTED BY: Jim Hanson, ' DATE: May 15, 2006 BACKGROUND: The staff report presented to the city commission several weeks ago described the need to adopt an ordinance creating rules for cable television franchises and for other purposes as well as to adopt a franchise agreement renewal with Comcast. Because the proposed ordinance establishes several of the parameters upon which the franchise renewal is based, it is appropriate for the Mayor and Commission to first adopt the ordinance before approving the franchise agreement. State law also requires local governments to consider several factors ~" before granting franchise agreements with cable television providers. The relevant portions of State Code Section 166.046 "Definitions; Minimum standards for cable television franchises imposed upon counties and '" municipalities." includes the following: (2) No municipality or county shall grant a franchise for cable service to a cable system within its jurisdiction without first, at a duly noticed public hearing, having considered; (a) the economic impact upon private property within a franchise area; (b) the public need for such a franchise, if any; (c) the capacity of public rights-of--way to accommodate the cable system; (d) the present future use of the public rights-of--way to be used by the cable system; (e) the potential disruption to existing users of the public rights- of-way to be used by the cable system and the resulting inconvenience which may occur to the public; (fj the financial ability of the franchise applicant to perform; (g) other societal interests as are generally considered in the cable television franchising; (h) such other additional matters, both procedural and substantive, as the municipality or county may, in its sole discretion, determine to be relevant. ~"' AGENDA ITEM 7B&8A MAY 22, 2006 (3) No municipality or county shall grant any overlapping franchises for cable service within its jurisdiction on terms or conditions more favorable or less burdensome than those in any existing franchise within such municipality or county.. Most of the items listed in the state law aze not relevant in this case because the Comcast cable TV system has been in existence for many years. Disruption of public rights-of--way for installation of the new system, capacity of the rights-of--way to accommodate another system and other similaz items aze not applicable. As to ~* the financial ability of the franchise applicant to perform; Comcast is a large multi-state company with assets that include numerous cable systems in other cities and counties and they have been ~* providing the cable service in our community satisfactorily for several yeass. BUDGET: There are no anticipated changes to the city's budget as a result of the adoption of the cable TV ordinance or approval of the franchise agreement. Atlantic Beach receives approximately $100,000 per year in franchise fees from Comcast through the State Communications Services Tax. The city will receive a one time payment of approximately $22,800 as a result of this franchise agreement. Atlantic Beach had received in past yeass sponsorships from the cable system totaling $5,000 per year. The new state law instituting the Communications Services Tax eliminated the ability of cities to require payment of these "sponsorships" and other fees, regardless of whether or not they were included in a previous franchise agreement. " RECOMMENDATION: First, approve Ordinance No. 40-06-21 Creating Rules for Cable Television Franchises and authorize the City Manager to sign the franchise agreement with Comcast of Greater Florida/Georgia Inc. ATTACHMENT: (1) A copy of Ordinance 40-06-21 is listed under the second reading on this agenda. The proposed franchise agreement is also attached. ,~ ORDINANCE NO. 40-06-21 AGENDA ITEM 7B&8A MAY 22, 2006 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, ~""' CREATING RULES FOR CABLE TELEVISION FRANCHISES, ADOPTING CUSTOMER SERVICE STANDARDS, ESTABLISHING OBJECTIVE REMEDIES AND STANDARD ENFORCEMENT PROCEDURES, REQUIRING PERFORMANCE AND INSURANCE GUARANTIES, REQUIRING OTHER PROVISIONS CONSISTANT WITH MODERN TECHNOLOGY AND INDUSTRY DEVELOPMENTS, AND FOR OTHER PURPOSES. .~ City of Atlantic Beach Cable Television Ordinance Section 1 Grant of authority ............................................................................................ 3 .~ Section 2 Definitions ....................................................................................................... 3 Section 3 Construction system design standards ........................................................... . 5 .. Section 4 Technical and operational standards ............................................................... 6 Section 5 Installation and modification of system .......................................................... 9 • Section 6 Service area and extension of service ........:.................................................. 11 Section 7 Regulation of system and customer service requirements ............................ 14 Section 8 Franchise fees ................................................................................................ 27 Section 9 Rights reserved to City .................................................................................. 28 .~ Section 10 Application criteria, qualifications, procedure and costs .............................. 29 Section 11 Franchise required for operation ................................................................... 32 Section 12 Provision of supplemental services within the City ...................................... 33 Section 13 Parental control devices ................................................................................ 33 Section 14 Education and Government Channels ........................................................... 34 Section 15 Liquidated Damages ..................................................................................... 35 Section 16 Alternative to Revocation of the Franchise Agreement ................................ 40 Section 17 r Citation .................................::....................................................................... 40 MM Section 18 Amendments ................................................................................................. 40 Section 19 Effective Date ............................................................................................... 40 .~ .~ ,. Ordinance No. 40-06-21 2 ~. CHAPTER - CABLE TELEVISION [Ordinance Number] Section 1 Grant of authority. (a) The City of Atlantic Beach herein sets forth the conditions for the grant of '" a nonexclusive franchise to construct, operate and maintain a cable television system for the city and its residents, the system to be located in, upon, along, across, over and under the streets and roads of the City and all extensions and additions thereto for a period not to exceed ten (10) years commencing with the effective date of the Franchise Agreement ~.. issued pursuant to this chapter, subject to the rights, obligations, conditions and ,~, restrictions as hereinafter provided and ~as provided in the written Franchise Agreement. Should there be a conflict between the terms of this Chapter and the Franchise Agreement, the Franchise Agreement shall prevail. (b) The City retains authority to provide for the regulation and control of the '"" cable television system as prescribed herein in accordance with Federal and State law subsequent to the award of the Franchise and the City Commission and the City retain the authority to review the performance of the Franchisee periodically for compliance with the Franchise Agreement. ~. (c) The City assumes jurisdiction, to the fullest extent allowed by law, to ~, enforce all laws and regulations relating to cable television service in the City. Section Z Defmitions. For purposes of this Chapter, unless the context otherwise requires: (a) "Access Channels" mean any, channel designated for non-commercial use ~" as educational or local government channels. (1) "Educational Access Channel" means any designated channel for noncommercial use by local educational authorities; (2) "Government Access Channel" means any designated, ~. noncommercial channel for local government use; Ordinance No. 40-06-21 3 (b) "Billing complaint" means a Subscriber complaint regarding errors in billing. (c) "Cablecasting" means programming carried on a cable television system (d) "Cable System" or "Cable Television System" means as defined in 47 U.S.C. Sections 521 et seq., (the "Cable Act"), as maybe amended from time to time (e) "Channel" means a portion of the electromagnetic frequency spectrum which is used in a Cable System and which is capable of delivering a television channel, as defined by the FCC, and: (1) "Leased Access Channel" means a channel or a portion of a channel which is available for lease in accordance with Section 612 of the Cable Act (47 U.S.C. §532); (f) "Director" means the City Director of Public Works or his designee. (g) "Manager" means the City Manager, or the City Manager's designee. (h) "FCC" means the Federal Communications Commission, or any successor governmental entity thereto. (i) "Franchisee" means the person or entity that is awarded a franchise by the City to construct and operate a Cable Television System within the City in accordance with the provisions of all applicable law and enters into a Franchise Agreement. (j) "Franchise Area" means the legal boundaries of the City of Atlantic Beach, Florida. (k) "Public Proceeding" means a meeting open to the general public with •. prior announcement of the time and place at which members of the public are provided an opportunity to be heard. _ '" (1) "Service Complaint" means a complaint by a Subscriber or an applicant ~.. for subscription on the availability of obtaining service or signal quality but does not include complaints about programming selection. ..~ (m) "Public Right-of--Way" shall mean the surface of, and. the space above and below, any public street, highway, freeway, bridge, alley, court, boulevard, sidewalk, ,~ .~ Ordinance No. 40-06-21 4 m• ~. lane, public way, drive, circle or other public right-of--way including, but not limited to, public utility easements, dedicated utility strips, or rights-of--way dedicated for compatible uses and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the City in the Franchise Area, which shall entitle the City and the Franchisee to the use thereof for the purpose of installing, operating, repairing, and maintaining the Cable System. "Public Right-of--Way" shall also mean any easement now or hereafter held by the Franchising Authority within the Franchise Area for the purpose of public travel, or for utility or public service use dedicated for compatible uses, and shall include other easements or rights-of--way as shall, within their proper use and meaning, entitle the City and the Franchisee to the use thereof for the purposes of installing, operating, and maintaining the Franchisee's Cable System over poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments, and other property as maybe ordinarily necessary and pertinent to the Cable System. Notwithstanding the foregoing, "Public Right-of--Way" shall be limited to such locations where Franchisee may use, install, operate, repair, and maintain the Cable System without the violation of any law, ordinance of general applicability, easement, or right-of--way. (n) "Subscriber" means a person lawfully receiving any service delivered over the Cable Television System in exchange for payment. Any of the terms used herein, and the definitions thereof, that are defined in Section 76.5 of the rules of the FCC as amended from time to time, or in the Cable Act, and not mentioned in the above definitions, are incorporated herein by reference. Section 3 Construction system design standards. (a) The Cable System will be designed for a minimum of 78 video channels. The system shall be two-way capable. An applicant for a franchise is free to propose a Cable System plan that best accomplishes a modern broadband communications system that meets the reasonable needs and interests of the community. Ordinance No. 40-06-21 5 (b) The Franchisee shall provide all local broadcasting television stations as may be required by the FCC or federal law. Section 4 Technical and operational standards. The policy of the City with respect to technical and operational standards is to require that the Cable Television System be safely constructed and operated and that the system's components be durable and reliable. Signal reception standards and subscriber reviewing standards shall be maintained at all times by the Franchisee at a level at least equal to the minimum standards prescribed by the FCC now and hereafter. Overall technical performance of the system shall be assessed in relation to these standards. The Franchisee shall meet all FCC technical and operational standards. Subject to any pole attachment agreement between Franchisee and the owner of the applicable utility pole(s), Franchisee shall remove all cable lines, and any and all appurtenances and connections thereto, from any and all poles subject to pole change outs within 45 days of notice to Franchisee of such pole change out. (a) Construction standards and specifications. Methods of construction, installation and maintenance of the City's Cable Television System shall comply with all applicable federal, state and generally applicable local laws and regulations, and shall comply with the National Electrical Safety Code (NESC) and generally applicable local laws regulating 'the construction, installation and maintenance of electric supply and communication lines. (1) Tower. The following standards may be modified only with the written approval of the City Manager: (i) A tower constructed in the City for use of the Cable Television System shall comply with the standards contained in Structured Standards for Steel Antenna Supporting Structures, EIA Standards RS-222-A, as published by the Engineering Department of the Electronics Industries Association, 2001 I Street, N.W., Washington, D.C. and as amended from time to time. Any tower shall also comply with all generally applicable City of Atlantic Beach zoning and land use regulations. Ordinance No. 40-06-21 6 .~ ~, (ii) Installation and physical dimensions of a tower constructed for use in the City's Cable Television System shall comply with all appropriate Federal Aviation Agency regulations, as amended from time to time. The tower shall also comply with all generally applicable City of Atlantic Beach zoning and land use regulations. (iii) An antenna structure constructed in the City and used for the cable television system used in the City's cable television system shall comply with Construction, Marketing and Lighting of Antenna Structure, 47 CFR 17.1 et seq. (b) FCC standards. The system shall meet all applicable federal standards for reception of broadcast signals, as currently prescribed in 47 CFR 76.601 et seq., as amended from time to time. The signal reception standards as now existing or hereafter issued by the FCC are incorporated into and made a part of this chapter. Grading of the quality of each locally receivable signal against the performance of the system in delivering that signal to Subscribers shall be measured by FCC tests upon written request by the City Manager. (c) The Franchisee shall comply with all appropriate technical standards of the FCC as published in subpart K of 47 C.F.R. § 76. To the extent those standards are altered, modified, or amended during the term of this Franchise Agreement, the Franchisee shall comply with such alterations, modifications or amendments within a reasonable period after their adoption by the FCC. As provided in these rules, the Franchising Authority shall have, upon written request, the right to obtain a copy of tests and records required to be performed pursuant to the FCC's rules. (d) On the effective date ,of this Ordinance, it is acknowledged that Franchisee has above ground transmission and distribution facilities as referenced in the attached Exhibit "A," a large scale copy of which will be provided to the City by Franchisee upon entering into the Franchise Agreement. However, if all of the transmission and distribution facilities of all of the respective public or municipal utilities in said area of the Franchise Area are to be placed underground after the effective date of Ordinance No. 40-06-21 7 ,~ .~ this Ordinance, the Franchisee shall place its Cable Systems' transmission and distribution facilities underground within a reasonable period; provided that such underground locations are actually capable of accommodating the Franchisee's cable and .., other equipment without technical degradation of the Cable System's signal quality. If all of the transmission and distribution facilities of all of the respective public or ""^ municipal utilities in any area of the Franchise Area are placed underground at a subsequent date, then Franchisee shall use its best efforts to place its Cable Systems' transmission and distribution facilities underground within forty-five (45) days of written notice by the City, provided that all of the public or municipal electric utility's • transmission and distribution facilities are underground prior to Franchisee's placement of its Cable Systems' transmission and distribution facilities underground. It is the policy of the City to encourage underground installation wherever practicable. Franchisee may, „~, at any time, install its cable plant underground in areas where other utilities are aerial. If aerial facilities are required to be moved underground by the City pursuant to a ~"! beautification or other public improvement project, the City will use reasonable efforts to assist Franchisee in recovering the costs of relocation from any private, local, state or ~` federal funds available for the project but is not itself required to pay for such cost unless .~ such funds are passed through the City or its department specifically for the relocation of Franchisee's utilities, including the passage of funds through the City or its department .,~ for the relocation of private utilities which would include, by implication, the relocation of Franchisee's utilities. Nothing in this Section shall be construed to require the ,., Franchisee to construct, operate, or maintain underground any ground-mounted appurtenances such as customer taps, line' extenders, system passive devices, amplifiers, "^" power supplies, pedestals, or other related equipment. Underground installation shall be done in accordance with the following requirements: (1) Underground installation shall be done as follows: .~ Ordinance No. 40-06-21 8 ~, (i) All cable television lines, cables and wires, except those referenced above in the attached Exhibit "A" shall be installed underground. The cost of ~• all installations shall be born by the Franchisee. (2) The Franchisee's cable television distribution system in the public ~"" streets shall comply with all federal, state and generally applicable local laws and regulations in the Franchise Area. (e) In accordance with FCC requirements, the Cable System shall include an emergency alert capability which will permit the City to override, by remote control, the video and audio of all channels simultaneously except those involved in retransmission of ,~„ television broadcast programming. This provision shall be implemented in a manner consistent with and to the extent pernlitted by federal and state emergency alert ~• requirements. (f) The Franchisee shall maintain equipment capable of providing standby "'® power for headend, transportation and trunk amplifiers for a minimum of two (2) hours. Section 5 Installation and modification of system. (a) The Franchisee shall obtain a permit from the Director of Public Works and give prior written notice of proposed construction within the time frame required by ~. City code and regulations of general applicability prior to the construction so as to „~ coordinate all work between the City and the Franchisee. The City Manager shall have the right to inspect all construction by the Franchisee in the streets, and to make such periodic inspections as the City deems necessary to ensure compliance with the terms of its franchise and other pertinent provisions of law of general applicability. Such `' inspections shall be performed in a manner` so as to avoid interference with a Franchisee's construction activities and with the delivery of services to customers. Franchisee may ~. have a right to be present at time of inspection. (b) A Franchisee shall, at its expense, protect, support, temporarily or permanently disconnect or relocate in the same street or other public place any property ,~„ of the Franchisee or component of the Cable System by reason of traffic conditions, Ordinance No. 40-06-21 9 public safety, street closing, street construction, change or establishment of street grade, installation of sewers, drains, construction of buildings, water pipes, power or signal lines, and further provided that if federal or state funds are available to any person impacted by the change for the purpose of defraying costs related thereto, the City will upon request assist Franchisee in applying for such funds. (c) All wires, conduits, cables and other property and facilities of the Franchisee shall be so located, constructed, installed and maintained as not to endanger or interfere with the usual and customary traffic and travel upon the streets and public places of the City and so as not to endanger or interfere with the quality of the street, its surface, curbs, and any adjacent materials as the City Manager shall see fit. Upon request of the City, the Franchisee will plainly and visibly mark the location all wires, conduits, cables and other property and facilities of the Franchisee. The Franchisee shall keep and maintain all of its property in good condition, order and repair. The Franchisee shall keep accurate maps and records of all its facilities. Upon prior written notice, Franchisee shall provide the City Manager with strand and trench maps showing the location of its strand, trenches and vaults. The Franchisee shall not place equipment where they will interfere with the rights of property owners, with gas, electric or telephone fixtures or with water hydrants or mains or sewer or existing or planned construction by the City or its agencies or officers. Franchisee shall adhere to City's permitting process of general applicability and will restore land to original or similar condition. (d) The City shall give the Franchisee reasonable prior written notice of plans for street improvements where paving or re$urfacing of a permanent nature is involved. The notice shall describe the nature and -character of the improvements, the streets upon which the improvements are to be made, the extent of the improvements and the work schedule for the project. The notice shall give the Franchisee thirty (30) days to make any additions, alterations or repairs to its facilities, so as to permit the Franchisee to maintain continuity of service. If the Franchisee shall fail, refuse or neglect to comply within the thirty (30) day notice period, upon seven (7) days written notice, the City may Ordinance No. 40-06-21 10 ~. make the changes in the Franchisee's facilities at the Franchisee's cost and, absent gross negligence, the City shall not be liable to the Franchisee for damages resulting from the removal, alterations or relocation. All costs in connection therewith shall be paid by the Franchisee within thirty (30) days from receipt of the invoice therefore, with interest accruing at prime rate plus one percent (1 %) thereafter. (e) The Franchisee shall, on the written request of any person holding lawful a building moving permit, temporarily raise or lower its wires to permit the moving of the building. The expense of temporary removal or raising or lowering of wires shall be paid by the person requesting it, and the Franchisee may require payment in advance. The Franchisee shall be given not less than ten (10) business days' notice of a contemplated move to arrange for temporary wire changes. (f) The Franchisee shall have the authority to trim trees and small limbs upon and overhanging streets, alleys, sidewalks and other public places of the City so as to prevent the branches of the trees from coming in contact with its wires and cables. Franchisee shall obtain written approval of the City prior to removing any trees or cutting limbs either of which is over four (4) inches in diameter. City may require Franchisee to install its lines underground to accommodate and avoid the need to trim larger trees. In the event of an emergency, such as storm damage to trees near the Cable System, Franchisee may trim dead trees without advance notice to the minimum extent required to alleviate the threat. Nothing herein waives or modifies the requirement for the Franchisee to obtain any necessary permits or licenses. Section 6 Service area and extension of service. "" (a) Initial service area. For any initial franchise granted to an applicant not already providing cable service to a majority of the residents of the City, a Franchise Agreement shall provide for an initial service area comprised of all parts of the Franchise Area with a minimum density of thirty (30) homes per mile to be fully constructed and activated with services being offered to all residents in the area within a reasonable time to be set forth in a Franchise Agreement. The initial service area shall be designated in ~. Ordinance No. 40-06-21 11 .. such a way as to ensure a Franchisee is not red-lining or excluding any neighborhoods based on economic, racial, multiple dwelling unit densities or other criteria. (b) Extension of service outside initial service area. The Franchisee shall ..,~ extend its plant and make service available to any new areas of the City having density of seven (7) or more dwelling units per linear street mile within sixty (60) days after such "~ areas are built out. Franchisee shall offer Cable Service to all new homes or previously un-served homes located within one hundred twenty-five (125) feet of the Franchisee's distribution cable. The Franchisee may elect to provide Cable Service to areas not meeting the above density standards. The Franchisee may impose an additional charge in excess of its regular installation charge for any service installation requiring a drop or line extension in excess of the above standards. Any such additional charge shall be computed on a time plus materials basis (actual costs) to be calculated on that portion of the installation that exceeds the one hundred twenty-five (125) foot standard set forth above. (c) Progress and status reports. (1) A Franchise Agreement containing construction requirements as set forth above shall include as an exhibit a construction plan, indicating the timetable for construction of the various segments of the system. This plan may not be amended without the approval of the City Manager, in a formal writing, with a revised schedule attached. The schedule shall be in sufficient detail to provide the dates for each element of work. (2) From the date of commencement of construction through the completion of the construction timetable,-tike Franchisee upon request shall furnish to the City Manager progress reports at three-month intervals. The reports shall indicate, in detail, the progress of construction. (d) Construction Delay. Upon expiration of the construction schedule attached to a Franchise Agreement without construction having been completed, the City shall give a Franchisee written notice of non-compliance. Failure to cure the non-compliance Ordinance No. 40-06-21 12 .~ .~ within thirty (30) days from receipt of the written notice shall result in the assessment of liquidated damages in the amount of Two Thousand Dollars ($2,000) per day, starting the 31St day after receipt of notice of noncompliance. (e) Indemnity and insurance. (1) The Franchisee shall at all times indemnify, protect and save harmless the City from any and all penalty, damage or charges (including attorneys' fees, costs, and such fees and costs incurred by an appeal) arising out of claims, suits or causes of action, of award of damages whether compensatory or punitive, or expenses arising therefrom, either at law or in equity, which might be claimed now or in the future, including any payments required by the workers' compensation law, which may arise out of or be caused by the erection, location, maintenance, repair, installation, replacement or removal of the Cable Television System within the Franchise Area or by any act or omission of the Franchisee, its agents or employees, and recognizes that the granting of this Franchise is good and valuable consideration for giving this indemnity, and that a portion of the value of the Franchise otherwise paid to the City was reduced for this indemnity. This indemnification shall not apply to any direct City gross negligence or willful misconduct. (2) Concomitant with the execution of the Agreement, and at all times during the term of the franchise, the Franchisee shall obtain, pay all premiums for, and file with the City Manager certificates of insurance evidencing payment of the premium of a comprehensive general liability policy issued by a company authorized to do business in the State of Florida, of not less than (i) One Million Dollars ($1,000,000) for property damages for any one accident;_(i) One Million Dollars ($1,000,000) for each person; and (iii) Five Million Dollars ($5,000,000) for each occurrence for liability due to personal injury or death. This insurance shall protect the City from and against all claims, demands, actions, judgments and liabilities, which may arise or result, directly or indirectly, from or by reason of loss, injury or damages. In lieu of insurance, the Franchisee may deposit in a manner approved in writing by City cash or securities ~. Ordinance No. 40-06-21 13 providing the security called for in this paragraph. All insurance required hereby shall include the City as an insured party. (f) Construction Bond. If required by the City Public Works Director, prior to any Cable System construction, upgrade, rebuild in the streets, excluding work connected with normal operation and maintenance of the System such as line extensions and general repair, Franchisee shall furnish a construction bond in favor of the City in an amount equal to the lesser of the projected cost or One Hundred Thousand Dollars ($100,000). If such construction bond is not furnished to the City ten (10) days prior to the start of any such construction, construction shall be delayed until such time as the construction bond is provided in a form approved by the City or its designee. The construction bond shall be maintained until said construction work is completed and activated for a period of six (6) months thereafter at which point it will be automatically released. (g) Fair employment practices. The Franchisee shall comply with all lawful federal and state law regarding affirmative action in employment. Section 7 Regulation of system and customer service requirements. (a) To the extent permitted by federal and state law, the City shall have continuing regulatory jurisdiction and supervision over the operation of any franchise granted hereunder and may from time to time adopt such reasonable rules for the conduct of the business contemplated hereunder so long as the modification does not diminish benefits or increase obligations of Franchisee. (b) The continuing day-to-day regulatory jurisdiction of the City shall be exercised by the City Manager, who shall' have the following responsibilities and duties and such other responsibilities and duties as the City may assign in accordance with law: (1) Establishing reasonable customer service standards as permitted by federal and state law. Ordinance No. 40-06-21 14 ~. ... ~„ (2) Making proposals to the Franchisee and Subscriber in order to facilitate the resolution of disputes or disagreements between the Franchisee and Subscriber, which are brought before the City Manager by a Subscriber. (3) Reviewing all reports and filings submitted to the City as required ~"" hereunder and such other correspondence as may be submitted to the City concerning the operation of the system and reviewing the rules and regulations set by the Franchisee ~. under the provision herein. (4) Assuring that all rates and rules pertinent to the provision of service are communicated to the public at reasonable hours and upon reasonable request in accordance with the FCC's requirements. (5) Confemng and coordinating with the Franchisee on the efforts to ~• interconnect the City's Cable System with other communications systems with respect to public, educational and governmental programming as set forth in this Ordinance. ~" (6) Reviewing annual FCC reports regarding the technical performance of the system upon written request. in order to assess whether the system is ~. maintaining required technical standards. (c) Customer Service Requirements. The following requirements shall apply under "Normal Operating Conditions " , ~„ which under this subsection means those service conditions that are within the control of the cable operator and as prescribed in subsection (4) of this subsection. Those ~• conditions that are not within the control of the cable operator include, but are not limited to, natural disasters, civil disturbances, power outages, and telephone network outages "' and severe or unusual weather conditions-Those conditions that are ordinarily within the control of the cable operator include, but are not limited to, special promotions, pay-per- view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the Cable System. (1) Franchisee shall maintain all parts of its system in good condition ~„ and in accordance with standards promulgated by the FCC and as may be set forth in the Ordinance No. 40-06-21 15 City Code if mutually agreed upon with Franchisee and of general applicability and a Franchise Agreement. Sufficient employees shall be retained to provide safe, adequate, and prompt service for all customers and facilities. The customer service standards set forth herein are applicable to all Cable Services and any Franchise Agreement. (2) A Franchisee shall maintain at least one (1) conveniently located bill payment location in the City of Atlantic Beach or the City of Jacksonville Beach or the City of Neptune Beach with a staffed customer service counter for the distribution and receipt of equipment, payments and customer service complaints. A Franchisee may negotiate with other commercial establishments (e.g. supermarkets, shopping centers) to establish payment centers at their locations to satisfy these requirements. (3) Franchisee shall maintain a listed local, toll-free telephone number and employ a sufficient number of telephone lines, personnel and answering equipment or service to allow reasonable access by Subscribers and members of the public to contact the Franchisee on a full-time basis, twenty-four (24) hours per day, seven (7) days per week. (4) Franchisee shall answer all customer service and repair telephone calls made under Normal Operating Conditions within thirty (30) seconds, including wait time and within an additional thirty (30) seconds to transfer the call to a live customer service representative. For purposes of this Chapter, the term "Normal Operating _ ~ ... Conditions" shall have the definition contained in the Code of Federal Regulations, at 47 C.F.R. 76.309 (c) (4) (ii) as amended from time to time. These standards shall be met no less than ninety percent (90%) of the time under Normal Operating Conditions, measured on a quarterly basis. Under Normal Operating Conditions, the customer will receive a '"~ busy signal less than three percent (3%) of the time. Upon request, Franchisee shall submit reports showing its performance under this subsection on a monthly basis; .~ however, its performance shall be measured for purposes of compliance with the above standard on a quarterly basis. ..~ Ordinance No. 40-06-21 16 ~. (5) Franchisee shall employ and maintain sufficient qualified personnel and equipment to be available (i) to accept payments; (ii) to exchange or accept converters or other equipment; (iii) to receive Subscriber complaints or requests for service or repairs on a full-time basis, twenty-four (24) hours per day, seven (7) days per '~" week; (iv) to initiate and undertake normal repairs, and initiate action with respect to any Subscriber service complaints within twenty-four (24) hours; (v) to enable a service technician to respond to service calls twenty-four (24) hours per day, seven (7) days a week, including holidays when multiple Subscribers serviced from the same, nearest active electrical device such as an amplifier, call with the same complaint ~„ (6). Franchisee must meet each of the following standards no less than ninety-five percent (95%) of the time under normal operating conditions as measured on ~. a quarterly basis: (i) Standard installation work shall be performed within seven ~'"' (7) business days after an order has been placed except in those instances where a Subscriber specifically requests an installation date beyond the seven (7) business day period. "Standard" installations are up to one hundred twenty-five (125) feet from the existing distribution system. If scheduled installation is neither started nor completed as scheduled, a representative of the Franchisee will contact the Subscriber. ~„ (ii). Franchisee will begin working on Service Interruptions promptly and in no event later than twenty-four (24) hours after the interruption becomes known. "Service Interruptions" shall be defined as in 47 C.F.R. 76.309 (c) (4) (iii) as amended from time to time. Franchisee will begin working on other service problems no ~" event later than forty-eight (48) hours after the problem becomes known. Franchisee shall make best efforts to undertake normal repairs and initiate action within a reasonable time period of such interruption and, to the extent they are within the Franchisee's reasonable control, Service Interruptions, and service problems will be responded to, addressed, and Normal Operating Conditions will be restored within seventy-two (72) ~„ hours after receipt of a complaint. Ordinance No. 40-06-21 17 ,. (iii) The appointment window alternatives made available for „~ installations, service calls, repairs, and other installation activities will be either a specific time, a three (3) hour time block during Normal Business Hours, or at the election and ^~ discretion of the Subscriber, "all day". "Normal Business Hours" shall be defined as in 47 CFR Section 76.309 (c) (4)(i) as amended from time to time. "~" (iv) Franchisee may not cancel an appointment with a ..~ Subscriber after the close of business on the business day prior to the scheduled appointment without first attempting to contact the Subscriber; and (v) If at any time an installer or technician is running late for a scheduled appointment, the customer will be contacted and the appointment rescheduled, „~ if necessary, at a time that is convenient for the customer. (vi) Franchisee shall submit reports, upon request, to the City Manager showing its performance under this subsection on a monthly basis, however, its performance shall be measured for purposes of compliance with the above standard on a quarterly basis. (vii) A Franchisee shall implement a policy of providing credits for customers who complain to Franchisee about service outages in a pro-rated amount of that customer's normal monthly bill representing the number of days the customer was affected. _ (7) Subscribers who, under Normal Operating Conditions, have experienced one (1) missed installation or service appointment due to the fault of Franchisee shall receive installation free of charge. If the installation was to have been provided free of charge or if the appointment was for service or repair, the Subscriber shall receive a credit on its bill of Twenty Dollars ($20.00). An appointment shall be considered missed if the technician arrives more than fifteen (15) minutes later than the designated time block. (8) Disconnection. (i) Voluntary Disconnection. Ordinance No. 40-06-21 18 (A) A Subscriber may terminate service at any time. (S) A Franchisee shall promptly disconnect any Subscriber who so requests from the Cable System of the Franchisee. No period of notice prior to voluntary termination of service may be required of Subscribers by any Franchisee. So long as the Subscriber returns equipment within five (5) business days of the disconnection, no charge may be imposed by any Franchisee for such voluntary disconnection, or for any cable services delivered after the date of disconnect request. (C) Any security deposit and/or other funds due the Subscriber shall be refunded on disconnected accounts after any Franchisee equipment on customer premises, including all converters but excluding wiring, have been recovered by the Franchisee. Refund checks will be issued promptly, but no later than either the customer's next billing cycle or thirty (30) days whichever is earlier. (ii) Involuntary Disconnection. If a Subscriber fails to pay a monthly Subscriber or other fee or charge, the Franchisee may disconnect the service outlet of the Subscriber; however, such disconnection shall not be effected until both thirty-five (35) days after the due date of the monthly Subscriber fee or other charge, and ten (10) days advance written notice of intent to disconnect to the Subscriber in question. If the Subscriber pays the balance due within thirty-five (35) days of the due date or within ten (10) days after notice of disconnection has been given, the Franchisee shall not disconnect. After disconnection, upon payment by the Subscriber in full of all proper fees or charges, including the payment of the reconnection charge, if any, the Franchisee shall reinstate service. Franchisee reserves the right to deny service to any customer who has been repeatedly disconnected for non=payment of services to the extent such rights are consistent with applicable state and federal law. (iii) Nothing in this Ordinance shall be construed to prevent the Franchisee from removing its property from a premises of a Subscriber upon the termination of service consistent with FCC rules and regulations and any other applicable law. At the request of a Subscriber, a Franchisee shall remove its Subscriber equipment Ordinance No. 40-06-21 19 .~ from the premises of the Subscriber within thirty (30) calendar days of the request. Where removal is impractical, such as with buried cable or internal wiring, facilities and equipment may be disconnected and abandoned rather than removed, unless there is a written agreement stating otherwise, provided, however, that such agreement must be consistent with applicable law and FCC rules. (9) Franchisee shall intentionally interrupt service only for good cause and for the shortest time possible. Franchisee shall use its best efforts to ensure that such interruptions shall occur only during the hours of 1:00 a.m. to 6:00 a.m., except during a rebuild or upgrading of the Cable System. Franchisee shall maintain a written or electronic log for all intentional service interruptions. (10) Franchisee shall cause all of its field employees or subcontractors to wear a picture identification badge indicating employment or engagement by Franchisee. This badge shall be clearly visible to the public. All service vehicles of such persons shall be clearly marked with the name or logo of the Franchisee. (11) A Franchisee shall develop written procedures for the investigation and resolution of all Subscriber or City resident complaints, including, but not limited to, those regarding the quality of service, equipment malfunction and security deposits, which procedures shall be provided in advance of distribution to the City. A Subscriber or City resident who has not been satisfied by following the procedures of the Franchisee may submit a complaint with the City. The good faith or lack thereof of the Franchisee in attempting to resolve Subscriber and resident complaints in a fair and equitable manner will be considered in connection with the renewal application of the Franchisee. Upon request, Franchisee shall maintain a complete list showing the number of billing complaints received by category. (12) The City, or its designated representatives, shall have the right to review and audit the customer service call center numbers. If such audit concludes that Franchisee has a five percent (5%) or greater margin of error in its reporting of customer service numbers, Franchisee shall reimburse the City for its audit expenses. ,. Ordinance No. 40-06-21 20 ,~ (13) Franchisee shall abide by the following requirements governing communications with customers, bills and refunds: (i) Each Franchisee shall provide to Subscribers written information in each of the following areas at the time of installation, at least once '" annually, and at any future time upon request by the Subscriber: (A) How to use the cable service; ~. (B) Installation and service maintenance policies; (C) The products and services offered; (D) Prices and service options; ~„ (E) Channel positions of programming carried on the system; (F) The procedures of the Franchisee for the receipt and resolution of customer complaints, the address of the Franchisee and telephone number to ~" which complaints may be reported, and the hours of operation; (G) The telephone number and address of the City office designated to handle cable television complaints and inquiries shall be printed on the back of the bill; (H) The availability of a parental control options; (I) The Franchisee's information collection and disclosure policies for the protection of the privacy of the Subscriber. (ii) Franchisee bills will be clear, concise and understandable. (iii) Refund checks,will be issued promptly, and in no later than thirty (30) days or the next billing cycle of the customer following the resolution of a refund request, or the return of the equipment supplied by the Franchisee if service is terminated. (iv) Credits for service will be issued no later than the next billing cycle of the customer following the determination that a credit is warranted. ~. Ordinance No. 40-06-21 21 (v) A Franchisee shall provide Subscribers, the City, and the .~ City Manager with at least thirty (30) days advance written notice of any changes in rates, charges, or channel lineup, or changes of cable services offered over the Cable System in the manner required by FCC rules. (14) A Franchisee shall provide apro-rated twenty-four (24) hour credit upon request by the Subscriber to the account for any period of four (4) hours or more within atwenty-four (24) hour period during which a Subscriber experienced and reported an outage of service or substantial impairment of service due to a system malfunction. (15) Billing. (i) The first billing statement of the Franchisee after a new installation or service change shall be pro-rated as appropriate and shall reflect any security deposit. (ii) The billing statement of the Franchisee must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Invoices will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. (iii) The billing statement of the Franchisee must show a specific due date not earlier than ten (10) days after the date of the beginning of the service period. Any balance not received within ten (10) days after the due date may be assessed an administrative charge or late fee not to exceed Five Dollars ($5.00). The charge will appear on the billing statement of the following month. (A) Subscribers shall not be charged an administrative fee, a late fee or otherwise penalized for any failure by the Franchisee, its employees, or contractors, including failure to timely or correctly bill the Subscriber, or failure to properly credit the Subscriber for a payment timely made. .~ Ordinance No. 40-06-21 22 ~• ,A. (iv) The Franchisee must notify the Subscriber that payment can be remitted in person at the office of the Franchisee and inform the Subscriber of the address of the nearest office where payment can be made. (16) Alterations in Cable Service. (i) If a Franchisee wishes to alter the service being provided to a Subscriber (including by re-tiering, restructuring a tier or otherwise) in such a way that the Subscriber will no longer be able to obtain the same package of services, then the Franchisee must provide the Subscriber with thirty (30) days notice of such alteration, explain the substance and the full effect of the alteration, and provide the Subscriber the right within the thirty .(30) day period following notice, to opt to receive any other combination of services offered by the Franchisee. (ii) Except as provided herein, or under applicable federal or state law, no charge may be made for any service or product which the Subscriber has not affirmatively indicated, in a manner separate and apart from payment of the regular monthly bill that it wishes to receive. (17) Where a Franchisee offers and/or advertises any product or service in the City, such products and services must be made available to all customers in the Franchise Area. Failure to provide any product or service to a customer consistent with the material terms and conditions of the offers and advertisements, upon request and agreement to pay, shall be considered a violation of this Ordinance. This section shall not apply to new products and services being offered on a trial or experimental basis not to exceed a twelve (12) month period in a limited area for purposes of testing, assessing customer interest, or other legitimate business reason for such new products. (18) Franchisee, through its local manager or other person responsible for the operation of the Cable System, shall certify in writing to the City bi-annually that based upon internal due diligence by the Franchisee that to the best of knowledge of the Franchisee, it is in substantial compliance with the standards set forth in the customer service requirements of this Ordinance. At the request of the City, the Franchisee shall Ordinance No. 40-06-21 23 submit such documentation, as may be reasonably required, to demonstrate compliance of the Franchisee with this Section. This documentation shall be submitted within forty- five (45) days of the receipt of the written request of the City to the City Manager. (19) Excessive customer complaints to the City. If in any single month the number of Service Complaints and Billing Complaints from different individuals received by the City exceeds eleven (11) under Normal Operating Conditions, the City Manager may notify Franchisee in writing and request a meeting with Franchisee's system manager within five (5) business days to determine the cause of the high call volume and to establish a plan to cure or commence to cure within thirty (30) days the cause of the high call volume. Complaints to the City, that Franchisee demonstrates are unsubstantiated, by any third party, organization, group or the City shall not count toward assessment of the damages set forth herein. (20) Where the Franchisee has knowledge of any funds collected from Subscribers by Franchisee in excess of that which is lawfully allowed under applicable federal, state or local law, rules, regulations or by contract or agreement, Franchisee shall issue to Subscriber cash refunds no later than the next billing cycle or forty-five (45) days, which ever is greater. (21) Responsibility for the administration of this Ordinance and the Franchise agreement, and for the investigation and assistance in resolving complaints ~ against the Franchisee regarding the quality of service, equipment malfunctions, and related matters, including the authority to order fines, is hereby delegated to the City Manager, who is empowered, among other things, to .settle, or compromise any controversy arising from operations of the Franchisee, on behalf of the City in accordance "" with the best interests of the public. The City Manager may require compliance with .~ specific obligations of this Ordinance and the Franchise Agreement, provided that the Franchisee, may appeal the matter to the City Commission for determination. No adjustment, settlement, or compromise, whether instituted by the City Manager or by the City Commission, shall be contrary to the provisions of the Ordinance or any Franchise ,,,,, .~ Ordinance No. 40-06-21 24 ~. Agreement issued pursuant to the Ordinance, and neither the City Manager nor the City Commission, in the adjustment, settlement, or compromise of any controversy shall have the right or authority to add to, modify or delete any provision of the Ordinance or of the Franchise Agreement. (22) In addition to complying with the customer service standards set forth in this Ordinance or in any Franchise Agreement issued pursuant to this Ordinance, "' a Franchisee shall comply with all FCC customer service standards applicable to Cable Systems and any other applicable federal or state law concerning customer service standards, consumer protection, and unfair or deceptive trade practices, as the same shall _ be amended from time to time. (23) T'he City expressly reserves the right to consider violations of the customer service requirements in evaluating any renewal, modification or transfers of any Franchise Agreement. (24) Subscriber Privacy. (i) A Franchisee shall at all times protect the privacy of all Subscribers to the full extent required by Section 631 of the Cable Act, 47 U.S.C. 551, and state law. A Franchisee shall not condition Subscriber or other service on the grant of permission of the Subscriber to disclose information that, pursuant to federal or state law, cannot be disclosed without the explicit consent of the Subscriber.. No penalties or extra charges may be invoked by the Franchisee for a failure of the Subscriber to grant consent. (ii) Unless otherwise permitted by federal or state law, neither ~"' the Franchisee nor its agents or employees shall, without the prior and specific written authorization of the Subscriber involved, sell, or otherwise make available for commercial purposes the names, addresses or telephone numbers of any Subscriber or Subscribers, or any information which identifies the individual viewing habits of any Subscriber or Subscribers. Ordinance No. 40-06-21 25 ,~ (25) All data and information required by this Ordinance to be provided to the City by Franchisee shall reflect only the operations of the Cable System within the City. The City shall maintain the confidentiality of any information provided by a Franchisee that has been designated as Confidential or Trade Secret information, subject to State or Federal law. (26) Regarding customer service standards adopted by other Franchising Authorities located within Duval County only, the Franchisee shall amend the Franchise Agreement with the City to provide City with the same terms, upon the City's written request. (27) Franchisee may pass through to Subscribers any costs arising from customer service standards greater than those set forth in federal law by the' FCC. In the event that Franchisee intends to pass through to Subscribers any such additional costs, the Franchisee must provide at least thirty (30) days prior written notice to the City and shall provide the City with such documentation as may be reasonably required by the City to substantiate such additional cost. Upon request, the customer service requirements at issue shall be suspended while the City evaluates any information provided by Franchisee. (28) No Third-Party Beneficiaries. Nothing in this Ordinance or any Franchise Agreement is or was intended to confer thud-party beneficiary status on any member of the public to enforce the terms of such Ordinance or Franchise Agreement. (29) The Franchisee shall designate channel capacity for Leased Access in accordance with the requirements of Section 612 of the Cable Act, as amended. (30) All system monitoring shall be in compliance with Federal and State privacy and surveillance laws. (31) Franchisee shall permit the City designee to inspect the technical equipment and facilities of the system upon reasonable prior written notice, not to be, unless required by exigent circumstances, less than seventy-two (72) hours. .,~ Ordinance No. 40-06-21 26 w Section 8 Franchise fees. The Florida Simplified Communications Services Tax Act preempts Section 8 of this Ordinance. If, however, the Florida Communications ~„ Services Tax Law is amended or repealed so that a local franchising authority is allowed to impose and collect franchise fees, then forty-five (45) days after the effective date of ~* any such statutory amendment or repeal, this Section 8 of the Ordinance will become effective with respect to all Franchise Agreements or at such time as stated in said amendment or repeal of the Florida Communications Services Tax Law. Unless otherwise provided by law, Franchisee shall collect and remit franchise fees for the entire ~. period following the effective date of the aforementioned change in law, even if some collection and payment must be done in arrears to allow for changes to the billing ~» process. The intent of this section is to ensure the City is not deprived of any franchise ~„ fees to which it would otherwise be entitled following a change in state law. (a) The Franchisee shall pay, as fair compensation for a franchise granted ~* pursuant to this Ordinance, and in consideration of permission to use the streets and public ways of the City for the construction, operation, maintenance and reconstruction of a Cable System within the City, an annual franchise fee not to exceed the maximum fee permitted by law based upon Franchisee's provision of cable television services within the City. The exact amount of this franchise fee shall be set forth in the Franchise Agreement between the City and Franchisee, Any increase in the franchise fee shall be voted on at a public hearing of the Commission following the notice and opportunity for ~„ public comment required by law. Franchise fee payments shall be made to the Finance Officer. """" (b) Payments due the City under this provision shall be computed quarterly, for the preceding quarter, as of January 1, April 1, July 1 and October 1. Each quarterly ~, payment shall be due and payable no later than forty-five (45) days after the relevant computation date. Each payment shall be accompanied by a brief report to the City Manager showing the basis for the computation and such other relevant facts as may be required by the City. ~. Ordinance No. 40-06-21 27 (c) No acceptance of a payment shall be construed as an accord that the .~ amount paid is, in fact, the correct amount, nor shall the acceptance of payment be construed as a release of any claim the City may have for further or additional sums .,~ payable under the provisions of this chapter. All amounts paid shall be subject to audit and re-computation by the City. In the event that re-computation results in additional revenue to be paid to the City, the amount shall be subject to a surcharge, charged for each day for which the payment was delayed, calculated in accordance with the prime rate of interest as published in the Wall Street Journal as of the date of re-computation. (d) Annual revenue statements, acceptable to the City Manager, shall be submitted within forty-five (45) days after completion of the Franchisee's year-end close verifying revenues generated under the Franchise Agreement. (e) Nothing in this section shall limit a Franchisee's liability to pay other local taxes of general applicability. Any tax, fee or assessment that is imposed by the City upon any Franchisee or its Subscribers solely because of their status as such, shall be treated as a franchise fee. (f) Franchisee shall have the right to designate that portion of a Subscriber's bill attributable to the franchise fee as a separate item on the bill and shall have the right to pass through to Subscribers the full amount of the franchise fee. Section 9 Rights reserved to City. Without limitation upon the rights that the City might otherwise nave, the City does hereby expressly reserve the following rights, powers and authorities: (a) To exercise its lawful governmental powers now or hereafter to the full extent that these powers may be vested in,or granted to the City. (b) To grant additional franchises within the City to other persons for the conduct of cable television in accordance with federal and state law. (c) To exercise any other rights, powers or duties required or authorized to the City under the State Constitution or the Charter. .,~ Ordinance No. 40-06-21 28 ~. Section 10 Application criteria, qualifications, procedure and costs. (a) The City shall award an initial franchise to an applicant only after a public ~„ hearing on the application and information filed therewith, and the award shall be based on the satisfaction of the criteria contained herein. No franchise shall be awarded except ~* upon a showing by the applicant of satisfaction of these criteria among others. (b) In accordance with FCC rules, evidence must be presented assuring the ~' City that the applicant is a United States citizen or corporation. (c) The applicant shall present character qualifications, as follows: (1) Applicants shall present evidence as to whether or not the applicant or any officer, director or principal has ever been convicted in a criminal proceeding where felonies or misdemeanors were charged. (2) Evidence shall be presented as to whether the applicant or any officer, director or principal has ever been a party to a civil proceeding in which it was held there were unfair or anticompetitive business practices; antitrust violations; violations of securities laws; or false or misleading advertising. (3) Evidence shall be presented as to whether applicant has ever had a business license (including FCC licenses) revoked. (d) The applicant shall file twelve (12) copies of the application for the cable __ television franchise for the City with the City Manager during the time period designated by the City, which notice shall be published affording notice to all prospective applicants. The applications shall be reviewed by the City and the applicants afforded proper time during a public proceeding before the City,to explain their application. The City may utilize consultants knowledgeable in the field of cable television for analysis of the applicants' proposals. The City Commission shall endorse an applicant and authorize the City's entrance into a contract for the cable television franchise if the applicant satisfies the criteria established herein and the City determines that grant of application will serve the public convenience, safety and general welfare. Ordinance No. 40-06-21 29 (e) The applicant shall submit details of the applicant's financial background, Subscriber rates, proposed system technical configuration and operational system description, construction timetable proposed to complete service to the initial service area, proposed administrative practices, and delineate the applicant's employment practices and policies. Existing Franchisees operating in the City are not required to provide the application or follow the application procedures described herein. The applicant shall present additional evidence to assist the City in evaluating the effect of an additional cable television operator. Such evidence shall include, but is not limited to: (1) The extent of installation of facilities and equipment of existing cable operator(s) detailing the per-strand-mile density of areas served, unserved areas and the per-strand-mile density of such, and the location of the facilities of the existing operator(s). (2) The per-strand-mile densities of the areas the applicant proposes to serve and the extent to which the applicant intends to utilize bulk rate contracts. (3) The extent to which the applicant intends to overbuild existing cable operator(s). (4) T`he detailed economic and financial information and assumptions of the applicant. (5) The technical or physical limitations of rights-of--way, the frequency and extent of disruption ofrights-of--way, and the potential conflicts with other rights-of--way users (including vehicular traffic). (6) The effects of competition in the cable industry, including the cost of duplication of facilities and equipment, services, personnel, etc., and the extent to which overbuilds have historically survived, and the potential for loss of or degradation of cable service to existing or potential Subscribers. (7) The extent to which existing cable operator(s) are meeting the community needs and interests and the manner and extent to which the applicant proposes to meet community needs and interests. Ordinance No. 40-06-21 30 ..~ .~ +~• (8) The ability of the City to regulate multiple franchises, including the permitting processes of the City, the ability to readily locate and determine the owner ~„ of facilities and equipment, and the extent of conflicts of utility and cable installations. (9) Any other evidence pertinent to the City's evaluation of the ~" application. (f) If applicant proposes to serve an area then served or planned to be served by another Franchisee, the application shall be submitted with proof of service of a copy of its application upon the incumbent Franchisees. (g) In evaluating an application, the City shall consider the applicant's legal, financial, technical, and other qualifications, the adequacy of its proposed system, and shall balance pro-competitive impact of additional franchisees, with the continued ability of residents to obtain high quality cable services at the lowest economic price and the possible increased diversity of information with the: (1) Ability of the City to regulate multiple cable operators and services, (2) Disruption of public and private property by multiple cable operators, (3) Economic viability of cable operators so as to make available high- quality cable services to the greatest number of City residents at the lowest economically. feasible price taking into consideration all existing competition, including OVS, SMATV ~. and direct broadcast satellite providers. (i) Consideration will be given an installation plan that ~'" provides flexibility needed to adjust-' to new developments, establishes quality maintenance practices and provides marketable services that would be available to Subscribers and the community immediately and in the future. (h) Consideration will be given to applicants with the most reasonable installation and Subscriber rate schedule that is, at the same time, justified in the financial ,~„ pro forma statements by use of realistic levels of penetration. Ordinance No. 40-06-21 31 (i) Consideration will be given to applicants presenting evidence of financial resources that assure initial service area within five (5) years of receiving required FCC franchise approvals. (j) Consideration will be given to applicants that can give evidence of providing efficient, satisfactory and dependable services to other communities and a management background that gives evidence of excellent construction practices, ability to meet deadlines and good planning and marketing practices. (k) Applicants proposing services and technical standards exceeding the minimum required in this chapter will be given added weight in the evaluation if these services and standards are guaranteed and are within the financial capability of the system as shown by a pro forma statement, and are also within the guidelines of acceptability as defined by FCC's description of extra service packages. (1) Each application shall be accompanied by a filing fee in the amount of five thousand dollars ($5,000). This fee shall be used to pay the cost of processing the application, including consultation fees, and the time and materials of City departments required for the processing. Any part of the filing fee that is not required to meet the cost of processing shall be returned pro rata to the applicant following the selection process. Each applicant shall be required, as a condition to the award of a franchise, to post with the City a construction bond, acceptable to the City Attorney, or, in lieu thereof, cash in the full amount of the cost of construction, and such additional corporate guarantees as the City may require as surety for the faithful performance and discharge by it of all of its construction obligations. The bond shall remain in force and in effect until construction is completed and approved by the City. Section 11 Franchise required for operation. No Cable Television System may operate within the City without grant of a franchise pursuant to this chapter and in accordance with applicable law. Ordinance No. 40-06-21 32 Section 12 Provision of supplemental services within the City. A Franchisee will provide, free of charge to the City, the following supplemental services on an annual basis. (a) "Expanded Basic" service to each public and private school, but no "home" school, located in the Franchise Area located within one hundred twenty-five (125) feet of Franchisee's distribution cable. (b) "Expanded Basic" service to each municipal building and community center located in the Franchise Area located within one hundred twenty-five (125) feet of Franchisee's distribution cable. Section 13 Parental control devices. It is the declared public policy of the City that each person's home is a place of refuge and privacy subject to the unique control of the homeowner and the occupants and that these values are especially important as they pertain to the parenting of children and the supervision of children. (a) Each Franchisee shall provide for sale or lease a parental control device, defined below, to each and every Subscriber requesting such device for use as part of their cable subscription and shall provide assistance on the use of all parental control devices supplied by the Franchisee. A parental control device shall mean a converter or other equipment or software or combination thereof, which enables the adult user to electronically block either channels or programs or other services from being shown on such receivers. ~* (b) A Franchisee shall, verbally and upon request in writing, inform potential Subscribers and renewing Subscribers regarding the available option to obtain a parental control device, the rates and terms for such devices and reasonable and clear information with regard to use of such devices. If applicable, the Franchisee shall install a parental control device within fifteen (15) days after receiving an order for such device from a Subscriber. The parental control devices to be made available by the Franchisee shall be reliable equipment, which is available at a reasonable and affordable price to the vast majority of Subscribers to the Cable Television System in the City of Atlantic Beach. Ordinance No. 40-06-21 33 (c) Upon written request by customer, Franchisee shall provide parental control devices and the installation thereof at a nominal cost. (d) As parental control devices are improved and new technology becomes -* available, the Franchisee shall upgrade the parental control device it makes available to its Subscribers so that such devices shall continue to be affordable and easy to own, rent, "~ use and operate by a parent for the protection of the family and especially children of the family and children which are guests in the home. (e) It is the intent of the City Commission that each Subscriber shall have the option to control by mechanical or electronic means known only to the designee of the Subscriber, the channels and programs received by the television receivers of such „~ Subscribers. Franchisee shall take reasonable steps to make parental control devices available to Subscribers on an affordable and user friendly basis. Section 14 Education and Government Channels. In accordance with Section 611 of the Cable Act (47 U.S.C. Section 531) the Franchisee agrees to provide to Atlantic Beach, Jacksonville Beach and Neptune Beach throughout the term of this Franchise Agreement, for their non-exclusive use, one (1) Access Channel to be shared among them, to be used for non-commercial, local governmental access programming. Atlantic Beach, Jacksonville Beach, and Neptune Beach, individually or collectively, shall give Franchisee ninety (90) days written notice of the intent to initially start the use of the channel. Franchisee shall .cover fifty percent (50%) of the cost for the equipment and connectivity and all other associated costs, and the requesting City or Cities will cover the balance. Franchisee and Franchise Authority expressly agree that such capacity is not r-equired to be placed on the most basic tier and may be placed on other tiers, including digital tiers not subscribed to by every customer, subject to Franchisee's discretion. If such capacity is placed on the most basic tier, than Franchisee may broadcast such programming in a digital format so that Subscribers must have the necessary digital box or terminal to view the channel. Because blank or under utilized Government channels are not in the public interest, in the event that Atlantic Ordinance No. 40-06-21 34 .,~ Beach, Jacksonville Beach and Neptune Beach elect not to fully program its channel capacity, meaning eight (8) hours-a-day, non-repetitive, locally produced programming ,,,, Monday through Saturday for a minimum of six (6) consecutive weeks, Franchisee may program unused time so long as Atlantic Beach, Jacksonville Beach and Neptune Beach's +~* programming is not preempted. Section 15 Liquidated Damages. (a) Calculation of Damages. Subject to the annual cap pursuant to Subsection (d) of this Section, liquidated damages shall be calculated in the following manner: (1) Excessive Customer Complaints to the City. If in any single month the number of Service Complaints and Billing Complaints .from different individuals received by the City exceeds eleven (11) under Normal Operating Conditions, the City Manager may notify Franchisee in writing and request a meeting with Franchisee's system manager within five (5) business days to determine the cause of the high call volume and to establish a plan to cure or commence to cure within thirty (30) days the cause of the high call volume. If following such a meeting the call volume nevertheless exceeds eleven (11) the following month, the City Manager may assess liquidated damages of One Thousand Dollars ($1000). If following such a meeting the call volume continues to exceed eleven (11) calls for any one month, the liquidated damages amount shall reset to One Thousand Dollars ($1,000) for the next violation. Complaints to the City that Franchisee demonstrates are unsubstantiated by any third party, organization, group or the City shall not count toward assessment of the damages set forth herein. No liquidated damages may be assessed if the City has not notified the Franchisee and held the above-mentioned meeting. If it appears that call volume to the City continues to exceed eleven (11) calls per month in consecutive months despite Franchisee's best efforts to remedy any problem, or in the absence of an identifiable cause, Franchisee may request the City for a new call volume threshold in the City's reasonable discretion. The assessment of liquidated damages for excessive customer Ordinance No. 40-06-21 35 complaints shall not preclude Franchisee's obligation to issue customer credits pursuant to this Ordinance or the Franchise Agreement. (2) Failure to comply with customer service requirements. For a failure to comply with the requirements of Section 7 customer service requirements, the City Manager may assess Franchisee liquidated damages in the amount of Five Hundred Dollars ($500) per violation for each day the violation remains uncured unless liquidated damages in another amount is specifically set forth herein. (i) Prior to assessing any liquidated damages, the City Manager shall mail to the Franchisee a written notice by certified or registered mail of the alleged violation and the proposed liquidated damage, specifying the violation at issue and any liquidated damages will commence as of the date of such notice. Notwithstanding, unless a customer service violation cannot be cured, such as a violation of Subscriber privacy, the Franchisee shall have thirty (30) days from the date of receipt of the written notice to cure or commence to cure, as is appropriate depending on the nature of the violation, the alleged violation or file a written response to the notice of violation by the City Manager refuting the alleged violation or explaining why additional time for cure is necessary. In the case of violations of requirements measured on a quarterly or longer period, Franchisee shall have thirty (30) days from the date of receipt of the written notice to commence to cure the alleged violation and Franchisee shall cure the violation in no less than one such period. (ii) Prior to assessing liquidated damages, the City Manager shall consider any justification or mitigating factor advanced in the written response of the Franchisee, including but not limited :to rebates or credits to the Subscriber. The City Manager may, after consideration of the response of the Franchisee, waive or reduce any proposed liquidated damage in the event the violation has not been cured. The City Manager may not assess any liquidated damage if the Franchisee has reasonably responded to the complaint or cured or commenced to cure, as may be appropriate, the violation within a reasonable time frame not to exceed thirty (30) days or for violations of ,.,~ Ordinance No. 40-06-21 36 requirements measured on a quarterly or longer period, commenced to cure within thirty (30) days and cured within one such period, following receipt of written notice from the City, unless some other cure period is approved by the City Manager. (3) Fraud. A practice of intentional misrepresentation, fraud or deceit by a Franchisee in connection with the customer service standards set forth in Section 7 shall be grounds for franchisee revocation and a fine in an amount not to exceed Ten Thousand Dollars ($10,000). (4) Construction Delay. Upon expiration of the construction schedule attached to a Franchise Agreement without construction having been completed, the City shall give a Franchisee written notice of non-compliance. Failure to cure the non- compliance within thirty (30) days from receipt of the written notice shall result in the assessment of liquidated damages in the amount of Two Thousand Dollars ($2,000) per day, starting the 31St day after receipt of notice of noncompliance. However, Franchisee may apply for, and the City will not unreasonably deny, an extension of time to complete construction where the failure to meet the established deadlines is caused by federal, state or municipal action (including delays in permitting or make-ready steps), act of God, riot or other civil disturbance, or by any other cause, contingency or circumstance beyond its control which prevents or hinders the construction of the Cable Television System; provided, however, that difficulties or delays caused by subcontractors do not warrant a. waiver of the damages hereunder. (5) Construction and installation violations. For failure to complete construction and installation of the cable system and to commence operations in accordance with the terms of the Franchise Agreement, unless the City Commission, upon the recommendation of the Manager, approves a construction delay because of reasons beyond the control of the Franchisee, Franchisee shall pay liquidated damages in the amount of Two Thousand Dollars ($2,000) per day for each day construction or commencement of operations is late. The City shall give a Franchisee written notice by certified mail of an alleged violation. A Franchisee shall have thirty (30) days to cure or Ordinance No. 40-06-21 37 0 commence to cure as may be appropriate the alleged violation or to seek a reasonable extension of time in which to complete construction or commence operations, which extension shall not be unreasonably denied. No liquidated damages shall be assessed if the alleged violation is cured or commencement to cure has begun, as may be appropriate within the allotted time. Further, nothing in this paragraph limits the otherwise applicable remedies available to the City for this or any other breach of the Franchise Agreement, including but not limited to revocation and liquidated damages set forth in this Ordinance. (6) Breach not otherwise provided for. Unless otherwise provided in .* this Ordinance or a Franchise Agreement, substantial breaches of material provisions of a Franchise Agreement or this Chapter, other than the customer service Section or any other Section already providing for fines or liquidated damages, shall subject a Franchisee to liability for liquidated damages not to exceed Five Hundred Dollars ($500) for each violation, calculated on a calendar day basis with each day of a continuing violation constituting a separate violation. In the case of violations based on failure to meet monthly or quarterly requirements, the violation shall be calculated as a continuing violation for each month or quarter of such continuing violation. The City shall provide written notice of any alleged violation describing in detail the basis of the violation. A Franchisee shall have an opportunity to cure the alleged violation within thirty (30) days, contest the existence of a violation, or to request such additional time as is reasonably necessary to implement a cure, which request shall not be unreasonably denied. For purposes of this Section, a "material provision" is one that sets forth requirements the violation of which may substantially prevent or impair the delivery of cable services to more than one percent (1%) of the Subscribers in the Franchise Area served or to be served by a Franchisee in a manner or at a quality consistent with the terms of this Ordinance as it existed on the effective date of the Franchise Agreement, and the Franchise Agreement issued pursuant thereto. Ordinance No. 40-06-21 38 ~* (b) Payment and enforcement. Upon expiration of the cure period without a cure or commencement of a cure, as may be appropriate, with consideration of the response of the Franchisee, if any, the Manager may issue an assessment of the liquidated damages in writing delivered by certified mail. The liquidated damage shall be paid within thirty (30) days of written notice of assessment to the Franchisee. This fine shall constitute liquidated damages to the City for the violation and the City may enforce payment of the liquidated damage in any court having jurisdiction, including enforcement against the letter of credit provided by a Franchisee. It is the intent of the City to determine liquidated damages as a reasonable estimate of the damages suffered by the City, whether actual or potential, that are difficult to measure. (c) Appeals. Franchisee may appeal any decision of the Manager directly to the City Commission within. thirty (30) days of notice of the assessment to the Franchisee. Within thirty (30) days of exhaustion of all administrative remedies, which includes the appeal to the City Council, Franchisee may appeal to a court of competent jurisdiction. Franchisee's obligation to pay the liquidated damages assessed shall not be stayed pending resolution of the appeal. (d) Annual cap on liquidated damages. (1) Amount of Cap. The Manager is responsible for assessing and collecting liquidated damages in an amount no greater than Fifteen Thousand Dollars ($15,000) annually. In no event shall the total annual liquidated damages imposed by the City exceed Fifteen Thousand Dollars ($15,000). (2) Availability of alternative remedies. To the extent that the City elects to assess liquidated damages as provided in this Ordinance and such liquidated damages have been paid, such damages shall be the City's sole and exclusive remedy. Notwithstanding the foregoing, nothing in this Section is intended to preclude the City from exercising any other right or remedy with respect to recover damages pursuant to any provision of this Ordinance for a breach that exceeds the maximum amount allowable pursuant to this Section. Ordinance No. 40-06-21 39 Section 16 Alternative to Revocation of the Franchise Agreement. In the event of violations of provisions of this Ordinance by the Franchisee that, pursuant to this Ordinance or the Franchise Agreement, would give the City the option to revoke the Franchise Agreement, the City Commission reserves the right as an alternative to revocation of the Franchise Agreement to ask Franchisee to propose rebates to be paid to Subscribers reflecting the seriousness of the violation. Section 17 Citation. This Ordinance No. shall be known and may be cited as the "Atlantic Beach Cable Television Ordinance." Section 18 Amendments. The City Manager be, and hereby is, authorized to execute anon-exclusive renewal franchise agreement between the City of Atlantic Beach and Comcast of Greater Florida/Georgia, Inc., which shall be subject to the Atlantic Beach Cable Television Ordinance. Section 19 Effective Date. This Ordinance shall take effect immediately upon its final passage and adoption. PASSED by the City Commission on first reading this day of 2006. PASSED by the City Commissioner on second and final reading this day of , 2006. ATTEST: DONNA L. BUSSEY DONALD M. WOLFSON City Clerk Mayor, Presiding Officer Approved as to form and correctness: ALAN C. JENSEN, ESQUIRE City Attorney 0 .~ „~ Ordinance No. 40-06-21 40 +. FRANCHISE RENEWAL AGREEMENT ~"' FOR CABLE SYSTEM BY AND BETWEEN THE CITY OF ATLANTIC BEACH, FLORIDA AND COMCAST OF GREATER FLORIDA/GEORGIA, INC. TABLE OF CONTENTS Section 1 -Definitions Section 2 -Grant of authority Section 3 -Payments to City Section 4 -Franchise fees Section 5 -Upgrade, extension requirements and construction Section 6 -Annual Revenue Statements ~` Section 7 -Violations of Franchise Agreement, Ordinance Section 8 -Revocation of Franchise Section 9 - Abandonment Section 10- Technical Violation Section 11 -Force Majeure Section 12 -Foreclosure and Receivership Section 13 - No Waiver Section 14 -Notices Section 15 -Miscellaneous Provisions Section 16 -Entire Agreement Section 17 -Modification of franchise Section 18 -Renewal of Franchise Section 19 -Conveniently Located Office or Business Agent Section 20 -Local Event Sponsorship Section 21 -Reports and public records Section 22 -Transfers, sales and assignments Section 23 -Other Agreements AGENDA ITEM 7B&8A MAY 22, 2006 .~ THE FRANCHISE AGREEMENT This Franchise Agreement is made and entered into this day of , 2006, by and between the City of Atlantic Beach, Florida, a municipal corporation and .~ government under the laws of the State of Florida, together with its agents, employees and elected or appointed officials (the "City") and Comcast of Greater Florida/Georgia, Inc., a Florida corporation, authorized to do business in Florida, formerly known as rviCdiavilC of Crcatcr F iCilda, iuC., and Wh6Sc 6u1CcS are 1dCat~i at ~°uv/ uviutli~viut Parkway, Jacksonville, FL 32216 ("Franchisee"). WITNESSETH: WHEREAS, the City entered into a cable franchise agreement dated February 1, 1993, between the City and Franchisee, as successor to Continental Cablevision of Jacksonville (the "1993 Franchise Agreement"); and WHEREAS, MediaOne was an indirect subsidiary of AT&T Corporation ("AT&T"), which company entered into an agreement with Comcast Corporation to spin- off the AT&T cable operations and merge the former AT&T cable company with Comcast Corporation. Subsequently, MediaOne became an indirect subsidiary of the newly combined parent company, now named Comcast Corporation. MediaOne's name has been changed to Comcast of Greater Florida/Georgia, Inc.; and WHEREAS, Franchisee and City have agreed that the 1993 Franchise Agreement should be renewed as provided herein, with this document replacing the 1993 Franchise Agreement in its entirety. Now therefore, in consideration of the premises and covenants, the parties agree as follows: Section 1. Definitions. For the purpose of this Franchise Agreement, capitalized terms, phrases, words, and abbreviations that are not defined herein shall have the meanings ascribed to them in the City of Atlantic Beach, Ordinance Code, Chapter _ (the "Cable Ordinance"), and the Cable Communications Policy Act of 1984, as amended from time to time, 47 U.S.C. §§ 521 et seq. (the "Cable Act"). "Director" means the City's Director of Public Works or Director's designee. "Manager" means the City's Manager, or Manager's designee. "Effective Date" means the date on which the City and Franchisee have executed and delivered this Franchise Agreement. .,~ 2 ~. "Franchise Agreement" means this Agreement and any amendments or modifications hereto. "Franchise Area" means the present legal boundaries of the City as of the ~"" Effective Date, and shall also include any later additions thereto, by annexation or other legal means. '" "Gross Revenues" means the revenue derived by the Franchisee from the operation of the cable system in the Franchise Area to provide cable service, calculated in accordance with generally accepted accounting principles, including, but not limited to, '""" monthly basic, premium and pay-per-view service fees, installation fees, equipment rental fees (including but not limited to high definition television fees, digital video recorder fees, installation and service activation fees, and all other service and repair ~' fees), advertising and home shopping revenue. Gross Revenue shall not include .refundable deposits, bad debt, investment income,. nor any taxes, fees or assessments imposed or assessed by any governmental authority. "Person" means any natural person or any association, firm, partnership, joint ~• venture, corporation, or other legally recognized entity, whether for-profit or not-for profit, but shall not mean the City. "Public Right-of--Way" or "Street" shall mean the surface of, and the space above and below, any public street, highway, freeway, bridge, alley, court, boulevard, sidewalk, lane, public way, drive, circle or other public right-of--way including, but not limited to, public utility easements, dedicated utility strips, or rights-of--way dedicated for compatible uses and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the City in the Franchise Area, which shall entitle the ~'" City and the Franchisee to the use thereof for the purpose of installing, operating, repairing, and maintaining the Cable System. "Public Right-of--Way" shall also mean any easement now or hereafter held by the City within the Franchise Area for the purpose of ~"' public travel, or for utility or public service use dedicated- for compatible uses, and shall include other easements or rights-of--way as shall, within their proper use and meaning, entitle the City and the Franchisee to the use thereof for the purposes of installing, ~'" operating, and maintaining the Franchisee's Cable System over poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments, and other property as may be ordinarily necessary and pertinent to the Cable System: Notwithstanding the foregoing, "Public Right-of--Way" shall be limited to such locations where Franchisee may use, install, operate, repair, and maintain the Cable System without the violation of any law, ordinance of general applicability, easement, or right-of- way. Section 2. Grant of Authority. 2.1. The City hereby grants to the Franchisee pursuant to and in accordance with the Cable Act, Cable Ordinance and this Franchise Agreement, a nonexclusive '~ Franchise, which authorizes the Franchisee to construct and operate a Cable System 3 within the Franchise Area, and for that purpose to install underground cable television lines, cables and wires and to construct, repair, replace, reconstruct, maintain, or retain, under any Public Right-of--Way and all extensions thereof and additions thereto, such wires, cables, conductors, ducts, conduits, vaults, manholes, and for the purpose to construct, repair, replace, reconstruct, maintain, or retain above ground any pedestals, amplifiers, appliances, and other related property or equipment as may be. necessary or appurtenant to the Cable System as technically required, subject to approval by the City. 1`;o*,~:b :u th:s Fr uchl'Je shall be Co^,L~ed to rrohzb2t #.he FranclnsPe from offering any service over its Cable System that is not prohibited by federal, state or local law. 2.2. Term. The term of this Franchise, Agreement shall commence on the Effective Date and shall continue for a period often (10) years, having an expiration date of , 2016, unless extended as described below or terminated in accordance with the terms of this Franchise Agreement and the Cable Ordinance. 2.3. Renewal. Any renewal of this Franchise Agreement shall be governed by and comply with the provisions of Section 626 of the Cable Act, as amended. 2.4. Cable .Ordinance. This Franchise Agreement is issued pursuant to, and shall be subject to the terms and conditions of the Cable Ordinance. Unless the Franchise ~"' contains different terms and conditions, and in such case the Franchise shall control. Franchisee shall comply with each of the provisions of the Cable Ordinance, only as it exists on the Effective Date of this Franchise Agreement, with the exception of the customer service standards in Section 7(c) of the Cable Ordinance, for which the City reserves its rights to amend to the extent so permitted by federal law, and Franchisee shall „~ be bound by such provisions as amended. ]:n the event of a direct conflict or direct inconsistency as between this Franchise Agreement and the Cable Ordinance, the Franchise Agreement shall control. Nothing in this Franchise Agreement shall (A) „~, abrogate the right of the City to perform any public works or public improvements of any description, (B) be construed as a waiver of any codes or ordinances of general applicability promulgated or to be promulgated by the City, or (C) be construed as a „~ waiver or release of the rights of the City in and to the Public Right-of--Ways. Section 3. Payments to City. Franchisee shall make all Franchise Fee payments to the City within forty-five (45) days of the required date, with interest accruing at eight percent (8%) per annum on past-due amounts, unless otherwise expressly provided herein. Section 4. Franchise Fees. The Florida Simplified Communications Services Tax Act preempts Section 8 of the Cable Ordinance which calls for certain Franchise Fees to be paid. If, however, the Florida Communications Services Tax Law is amended or repealed so that a local franchising authority is allowed to impose and collect franchise fees, then this Section 4 of the Franchise Agreement will become effective as outlined in the Ordinance. 4.1. Amount. Franchisee shall pay the City a franchise fee of five percent (5%) of Franchisee's Gross Revenues derived from the operation of the Cable System. ..,a 4 ~• Franchise fee payments shall be paid on a quarterly basis (January 1, April 1, July 1, and '"' October 1) no later than forty-five (45) days after the end of each quarter. Each payment shall be accompanied by a report to the Finance Officer showing the basis for the payment computation. 4.2 Increase. The City shall have the option of increasing the franchise fee to the maximum amount permitted by law following a public hearing and vote by the City "~' Commission, which change shall take effect no sooner than forty-five (45) days following such vote and written notice to Franchisee. ** 4.3 Inspection of Records. Upon reasonable prior written notice, during normal business hours, at Franchisee's principal Duval County business office, the City shall have the right to inspect the Franchisee's financial records used to calculate the ~" franchise fees; provided, however, that any such inspection shall take place within two (2) years from the date the City receives such payment, after which period any such payment shall be considered final. 4.4 Report of Findings. Upon the completion of any such inspection by the City, the City shall provide to the Franchisee a fmal report setting forth the City's findings, ~" including any and all substantiating documentation. The Franchisee shall have thirty (30) business days from the receipt of the report to provide the City with a written response, including any substantiating documentation. Any "Finally Settled Amount(s)" due to the "'~' City as a result of such inspection shall be paid to the City by the Franchisee within thirty (30) business days from receipt of written notice of the acceptance of such Finally Settled Amount from the City. For purposes of this Section 4 the term "Finally Settled °"" Amount(s)" shall mean the mutually agreed upon underpayment, if any, to the City by the Franchisee as a result of any such inspection. Section 5. Upgrade, Extension Requirements and Construction. 5.1. Initial Service Area. Notwithstanding the provisions of Cable Ordinance !"' Section 6(a), "Initial Service Area" means that area of the corporate City limits defined by the description and the map set forth on to this Franchise Agreement. ~"' S.2 Extension of Service. The Franchisee shall extend its plant and make service available to any new areas of the City having density of seven (7) or more dwelling units per linear street mile as measured from Franchisee's distribution plant """ within sixty (60) days after such areas are built out. Given the unique character of the City's geography, Franchisee may be relieved from the density and extension requirements pursuant to this section should barriers, such as ecological or environmental ~"' areas of importance or the non-existence of public Rights-of--Ways contemplated by this Franchise and the Cable Ordinance, significantly frustrate the performance of such extensions. 5.3 Construction BondJLiability for Subcontractors. Any construction bonds shall be provided in accordance with the requirements of all applicable laws, unless "' otherwise agreed to by both parties. Franchisee shall be liable for all acts and omissions 5 of its agents, employees or .subcontractors, and shall indemnify and hold harmless the City from and against any liabilities (including attorneys' fees, costs and such fees and costs incurred by an appeal) arising out of any such acts or omissions. Franchisee shall comply, and shall require all subcontractors and agents to comply, with any applicable City codes or ordinances on construction bonds. S.4 Construction Reports. From the date of commencement of any ~nn~ctnirtinn thrpi~a~l cnmplPtipr~, the F'Tanr_,hisee S1_~all furnish to the Director construction. progress reports, upon request, at one-month intervals. The reports shall indicate, in reasonable detail, the progress of construction and shall be accompanied by a map depicting the area of construction completed since the prior report as compared with the construction that remains to be completed as set forth above. All construction projects shall be subject to the terms and conditions of the Cable Ordinance. S.S No Discrimination. Neither the Franchisee nor any of its employees, agents, representatives, ~ontraetors, subcontractors, or consultants, nor any other Person, shall discriminate or permit discrimination between or among any Persons in the availability of Cable Services provided in connection with the Cable System in the Franchise Area. It shall be the right of all Persons to receive all available services provided on the Cable System so long as such Person's financial or other obligations to the Franchisee are satisfied. S.6 New Developments. The City will use reasonable efforts to provide the Franchisee with written notice of the issuance of building or development permits for planned developments within the Franchise Area requiring undergrounding of cable facilities upon application by Franchisee. The City will request the developer give the Franchisee access to open trenches for deployment of cable facilities and at least ten (10) business days notice of the date of availability of open trenches. The Franchisee shall be responsible for engineering and deployment of labor applicable to its cable facilities. S.7 Facility. Relocation. In the event of any City road widening or other projects making it appropriate in the City's reasonable discretion for Franchisee to relocate its equipment or infrastructure, Franchisee shall do so on thirty (30} days written notice by the City. Franchisee shall apply for all necessary permits within seven (7) business days of the City's written notice. In the event the Franchisee's equipment or infrastructure endangers or interferes with any equipment or project of the City, Franchisee will immediately move its equipment and infrastructure at its own expense. S.8 Supplemental Services. The parties agree that the following provisions are in addition to all of the other requirements set forth in the Cable Ordinance. Franchisee agrees that within ninety (90) days of the Effective Date of this Franchise Agreement it will provide the Manager with an audit of all supplemental services listed below that are currently being provided by Franchisee in municipal or other City-owned public and community center buildings and public and private schools in the Franchise Area. In addition, during the term of this Franchise Agreement, Franchisee agrees that it will not reduce those supplemental services currently being provided by it to municipal buildings, community centers and public and private schools. 6 .~ 5.9 Service to School Buildings. The Franchisee shall provide free "Basic" ~"" and "Expanded Basic" tier Cable Service, and free installation of one (1) outlet, to each K-12 public and private school (but not including any "home school") located, now or later, in the Franchise Area within one hundred twenty five (125) feet of Franchisee's distribution plant. 5.10 Service to Government and Community Facilities. The Franchisee shall ~""' provide free "Basic" and "Expanded Basic" tier Cable Service for four (4) outlets and one (1) free installation to each municipal building and community center located in the Franchise Area within one hundred twenty five (125) feet of Franchisee's distribution ~"' plant. Section 6. Annual Revenue Statements. Notwithstanding the preemption by State '"" law of Section 8 of the Cable Ordinance, Franchisee nevertheless agrees to provide the City, upon request, with annual revenue statements, which shall be submitted within forty-five (45) days after completion of the Franchisee's year-end close. The ~`"" Franchisee's senior financial manager responsible for financial reporting shall certify the accuracy of the revenue statements and shall be conversant with the details of such statements. Section 7. Violations of Franchise Agreement, Ordinance. "" 7.1 Notice of Violation or Default. Unless otherwise provided herein, in the event the City believes that the Franchisee has not complied with the terms of the Franchise Agreement or the Cable Ordinance, it shall notify the Franchisee in writing by ~"' certified mail with specific details regarding the exact nature of the alleged noncompliance or default. ~""' 7.2 Franchisee's Rip~ht to Cure or Respond. Unless otherwise provided herein, Franchisee's right to cure or respond shall be consistent with and in accordance with the notice and cure provisions of Section 15, and subsections thereof, of the Ordinance Code ~" In the event that, by nature of the default, such default cannotbe cured in the time prescribed in the Ordinance, Franchisee shall initiate reasonable steps to remedy the default and notify the City of the steps being. taken and the projected date that they will ~" be completed, in which case, if acceptable to the City, which acceptance shall not unreasonably be withheld, the City shall grant an extension of the cure period. ~"" 7.3 Appeal. Unless otherwise provided herein, Franchisee may appeal any default decision of the Manager directly to the City Council within thirty (30) days of notice of the decision. The City shall schedule a public hearing to investigate the alleged default. The City shall notify the Franchisee in writing of the time and place of such meeting and provide the Franchisee with a reasonable opportunity to be heard. Subject to applicable federal and state law and appeal, if any, by Franchisee to a court of competent jurisdiction, in the event the City Council, after such meeting, determines that the Franchisee is in default of any provision of the Franchise, the City may: 7 (i). seek specific performance of any provision, which reasonably lends itself to such remedy, and/or seek damages or seek other equitable relief; or (ii). in the case of a substantial default of a material provision of the Franchise, declare the Franchise Agreement to be revoked in accordance with Section 8. Section 8. Revocation of Franchise. 8.1 In addition to all of the rights and powers reserved by or pertaining to the City, the City reserves as an additional and as a separate and distinct power the right to terminate and/or revoke the franchise and all rights and privileges of the Franchisee hereunder in any of the following events or for any of the following reasons, in the manner allowed by federal law, with notice, opportunity to cure, and subject to all due process rights including a public hearing: (i) Should the Franchisee, by act or omission or breach of any material term or condition, exhibit a practice of intentional misrepresentation, fraud or deceit by a Franchisee in connection with such reports in one (1) calendar year. (ii) Should .the Franchisee become insolvent, unable or unwilling to pay its debts or be adjudged bankrupt or should all or a substantial part of the Franchisee's facilities be sold under an instrument to secure a debt. In such an instance, the value of the Franchise can be calculated only on the value of Franchisee's hard assets (excluding the cost and/or value of the installation of the hard assets) and not on the value of the subscriber base. (iii) Should the Cable System in the Franchise Area or any substantial portion thereof within the Franchise Area fail to meet in total the minimum FCC signal standards for two (2) such tests in any. three (3) year period, or if any one (1) such individual failure is not corrected within ninety (90) days. With respect to the foregoing, every six (6) months, Franchisee shall conduct a test to determine whether the Cable System in the Franchise Area or any substantial portion thereof within the Franchise Area meets the minimum FCC signal standards. Within five (5) business days from conducting such test, Franchisee shall submit the results of each test to the City. (iv) Should the Cable System in the Franchise Area or any substantial portion thereof within the Franchise Area experience a substantial pattern of non- compliance with customer service standards or requirements. 8.2 The City shall give written notice to the Franchisee of its intent to revoke the Franchise on the basis of a pattern of noncompliance by the Franchisee, including one (1) or more instances of substantial noncompliance with a material provision of this Franchise Agreement. The notice shall set forth with specificity the exact nature of the noncompliance. The Franchisee shall have sixty (60) days from the receipt of such notice to object in writing and to state its reasons for such objection. In the event the City has not received a satisfactory response from the Franchisee, it may then seek termination of this Franchise Agreement at a public hearing. The City shall cause to be served upon the .,~ .~ ., ~i Franchisee, at least ten (10) days prior to such public hearing, a written notice specifying ~" the time and place of such hearing and stating its intent to request termination of the Franchise. '~" 8.3 At the designated hearing, the City shall give the Franchisee an opportunity to state its position on the matter, present evidence and question witnesses, after which it shall determine whether or not the Franchise shall be revoked. The public hearing shall be on the record and a written transcript, at the cost of Franchisee shall be made available to the Franchisee within ten (10) business days. The decision of the City shall be in writing and shall be delivered to the Franchisee in the manner set forth in Section 14 herein. The Franchisee may appeal such determination to an appropriate court, which shall have the power to review the decision of the City. Such appeal to the appropriate court must be taken within sixty (60) days of the issuance of the determination of the City. 8.4 In the event of a revocation or lawful termination or expiration of the Franchise Agreement in accordance with federal law, the City shall issue a request for proposals for a new franchisee. Franchisee's Cable System may otherwise be sold to the City or subsequent Franchisee for fair market value; provided, however, no value shall be attributed to the franchise itself, and the fair market value shall be for the cost of hard assets less the cost and/or fair market value for the installation of the hard assets as set ~„ forth in the "Cable Act" specifically Title VI of the Communications Act of 1934, as amended from time to time, 47 U.S.C. Sections 547(a)(1) et seq. 8.5 The City may, at its sole discretion, take any lawful action that it deems appropriate to enforce its rights under the Franchise in lieu of revocation. ,. Section. 9. Abandonment. In the event of abandonment of the Cable System or any portion of the Cable System, Franchisee shall remove the Cable System and restore the right of way, private property or easement to its previous condition. Franchisee may petition the City for a waiver of this obligation if the removal of the Cable System or portion of the Cable System would create more damage or disruption to the right of way, private property or easement and City may grant such waiver in its reasonable discretion. Section 10. Technical Violation. The City agrees that it is not its intention to subject the Franchisee to penalties, fines, forfeitures or revocation of the Franchise for so- called "technical" breach(es) or violation(s) of the Franchise, which shall include, but not be limited, to the following: in instances or for matters where a violation or a breach of the Franchise by the Franchisee was good faith error that resulted in no or minimal negative impact on the Customers within the Franchise Area; or where there existed circumstances reasonably beyond the control of the Franchisee and which precipitated a violation by the Franchisee of the Franchise, or 9 which were deemed to have prevented the Franchisee from complying with a term or condition of the Franchise. Section 11. Force Maieure. The Franchisee shall not be held in default under, or in noncompliance with, the provisions of this Franchise Agreement, nor suffer any enforcement or penalty relating to noncompliance or default (including termination, cancellation or revocation of the Franchise), where- such noncompliance or alleged defaults occurred or were c :'iSed by ±he folle~=ring events if ne+. rP?~nnably within the control of Franchisee: strike, riot, waz, earthquake, flood, tidal wave, unusually severe rain or snow storm, hurricane, tornado or other catastrophic act of nature, labor disputes, failure of utility service necessary to operate the Cable System, governmental, administrative or judicial order or regulation or other event that is reasonably beyond the Franchisee's ability to anticipate or control. This provision also covers work delays caused by waiting for utility providers to service or monitor their own utility poles on -which the-Frame^~ehisee's cable and/or equipment is attached, as well as unavailability of materials and~'or qualified labor to perform the work necessary, but only to such extent such work delays aze caused by one of the force majeure events listed in this section This provision does not cover situations, such as Normal Operating Conditions, where Franchise is expected to have enough materials and labor on hand. .,. Section 12. Foreclosure; Receivership. Upon receiving notice of an intended foreclosure or judicial sale, or intended appointment of a receiver or trustee whether in .. receivership, reorganization, bankruptcy or other action or proceeding or intended proceeding, concerning operations in the Franchise Area, the Franchisee shall immediately notify the City of this fact, and the notification shall be treated as a material •~ breach and default, with the opportunity being given to cure such default within thirty (30) days of the notice to Franchisee from the third parry. If Franchisee fails to cure such default within thirty (30) days of the notice to Franchisee from the third party, Franchisee's Cable System may otherwise be sold to the City or subsequent Franchisee for fair market value as determined in Section 8(d) hereof. Section 13. No Waiver. Failure or delay by City in enforcing any provision of this Franchise Agreement shall not be a waiver, forfeiture or estoppel or otherwise restrict or prevent the City from enforcing any such provision related thereto. There can be no waiver, forfeiture or estoppel of any provision in the absence of an amendment to this Agreement executed with the same formalities as done herein. Section 14. Notices. All notices to the City shall be addressed to: City Manager 800 Seminole Road Atlantic Beach, Florida 32233 All notices to Franchisee shall be to: .~ IO ~. ~. ~"" Area Vice President 6805 Southpoint Parkway Jacksonville, Fl. 32216 ~"' Facsimile: (904) 374-7622 With a copy to: Division Vice President of Government Affairs Comcast Cable Communications, Inc. 360 Interstate North Parkway, Suite 600 Atlanta., GA 30339 Facsimile: (678) 385-5101 Sr. Vice President -Law Department Comcast Cable Communications, Inc. 1500 Market Street Philadelphia, PA 19102 Facsimile: 215-640-405 0 Section 15. Miscellaneous Provisions. 15.1 It shall be the Franchisee's responsibility to obtain at its cost any permits, licenses or any other authorizations required under the Charter or Ordinance Code or any other law of general applicability and if contrary to the franchise agreement, mutually agreed upon in writing with Franchisee. 15.2 All approvals, licenses or permits required to construct the system shall be timely applied for by the Franchisee in order to ensure compliance with the Agreement. 15.3 It shall be the .Franchisee's responsibility to obtain at its expense permission to use any facilities or property belonging to the City or other entities. Section 16. Entire Agreement. This Franchise Agreement and the Cable Ordinance as written and in effect on ,embodies the entire understanding and agreement of the City and the Franchisee with respect to the subject matter hereof and supersedes all prior understandings, agreements and communications, whether written or oral. All ordinances or parts of ordinances, including, Ordinance Code that are in conflict with the provisions of this Franchise Agreement are superseded by this Franchise Agreement. This Franchise Agreement may not be amended or altered, ~" whether by resolution, ordinance, or other means, without the written consent of the City and Franchisee. Section 17. Modification of Franchise. Any modification of this Franchise Agreement shall be in accordance with the provision of Section 625 of the Cable Act (47 U.S.C. §545), unless otherwise agreed in writing as between the City and Franchisee. 11 •., Section 18. Renewal of Franchise. Franchise Agreement renewals shall be done in accordance with the informal or formal requirements of §626 of the Cable Act (47 U.S.C. §S46). Section 19. Conveniently Located Office or Business Agent. As long as it continues- to operate the system or any portion thereof in the 1,~ n 4 T:rn»n ~.°i°v°v a~ mop tai in e t PY Q 1„a4ntµ~ RPa h T 1CC(1 1~~P Fru:.c.use t`ueu, uhe x ,....,h: sh~..l ...,,.:n ~ i.h _t c , ac nv__-- Beach or Neptune Beach, a conveniently located office or local business agent. The City shall immediately be notified of the location of the office or any change thereof. Section 20. Local Event Sponsorship. The Franchisee shall provide to City aone-time payment in the sum of Twenty Two Thousand Eight Hundred and Thirty Eight Dollars ($22,838) for the pu_Tpose of the sponsorship of community events within ni 7ety (90) days of the effective date of this agreement. In turn, Comcast shall receive recognition of its sponsorship from the City through signage, advertising, announcement, posters or other reasonable means. Section 21. Reports and Public Records. 21.1 Availability of Books of Franchisee. (i) The Franchisee shall keep complete and accurate records as required by the FCC's rules as 47 CFR §76.1700 et seq. and 47 CFR §76.1800 et seq. (ii) The City or its duly authorized representative shall have access to all of the records as required in section one (1) herein on request, or at a minimum, by written request on three business days notice. The Franchisee shall provide access during the hours of 9:00 a.m. to 5:00 p.m. from Monday through Friday. 21.2 Concomitant with a filing or submission by the Franchisee of an annual report or any other petition or communication having direct bearing on the Cable System operated under this Agreement in the Franchise Area, with any governmental body, including all reports required to be filed with the FCC, it shall file, upon request, a copy of the document in written or electronic format with the City Manager. Section 22. Transfers, Sales and Assi ents. 22.1 No transfer, sale, change of control, merger or assignment of any interest in a Franchise Agreement or Franchisee shall occur without prior approval of the City. Such approval shall not be unreasonably withheld. For purposes of this entire section "control" of a Franchisee or applicant means the possession of the ability to direct or cause the direction of the management or policies of a Franchisee or applicant; or the operation of the Franchisee's system(s), whether through, operational control in whatever manner exercised or ownership of voting securities, by contract or understanding, or in ... 12 ~* ~,, any other manner. Notwithstanding the foregoing, prior approval of the City shall not be required for a wholly infra-corporate transfer. A wholly infra-corporate transfer is defined as a transfer between two direct or indirect wholly owned subsidiaries of the ~. same parent corporation involving no change of control as defined in this section. 22.2 An application for a transfer, sale or assignment of any interest of a Franchise Agreement shall meet the requirements of subsection 22.6 hereof, and provide complete information on the proposed transaction, including details on the legal, financial, and technical qualifications of the transferee, and on the potential impact of the +~ transfer on Subscriber rates and service. The application shall provide, at a minimum, the .information required in subsection 22.6 hereof and such other information as is specified in the Ordinance and this Franchise Agreement. 22.3 In making a determination on whether to grant an application for a transfer of a. Franchise Agreement; the City Commission shall consider the legal, financial, and ""' technical qualifications cf the transferee to operate the system; whether the incumbent cable operator is in substantial compliance with the material terms of its Franchise Agreement and the Ordinance and, if not, the proposed commitment of the Transferee to '"' cure such noncompliance; and whether operation by the Transferee would adversely affect cable services to subscribers, or otherwise be contrary to the public interest. ~"" 22.4 No application for a transfer of a Franchise Agreement shall be granted unless the Transferee agrees in writing to abide by and accept all terms of the Ordinance, as it existed on the effective date of this Franchise Agreement, and the Franchise ~"' Agreement, and to assume all obligations and liabilities of the previous Franchisee, regardless of whether such was disclosed to the transferee by the transferor, under the Ordinance, as it existed on the effective date of the Franchise Agreement any other '"~ subsequent agreements with the City. The City shall certify to Franchisee, upon request, all issues of Franchisee's performance that are known and pending. . 22.5 Subject to applicable law, approval by the City of a transfer of a Franchise Agreement does not constitute a waiver or release of any of the rights of the City under the Ordinance or the Franchise Agreement, whether arising before or after the date of the transfer ~ 22.6 Applications for Transfer of Franchise Agreement. (i) A written application shall be filed with the City for the transfer or ~„ change of control of a Franchise Agreement. Unless otherwise prohibited by law, a Transferee shall pay up to Five Thousand Dollars ($5,000) of the City's actual costs to process the application. (ii) To be acceptable for filing, a signed original of the application shall be submitted together with twelve (12} copies, and contain all required information. All applications shall include the names and addresses of the persons authorized to act on behalf of the applicant with respect to the application. 13 (iii) All applications accepted for filing shall be made available by the City for public inspection. (iv) An application for the transfer of a Franchise Agreement shall contain, at minimum, the following information: (a) T;au.e and wddress of ~he spplicwnt and identification of the ownership and control of the applicant, including: the names and addresses of all persons with five percent (5%) or more ownership interest in the applicant, including the names and addresses of parents or subsidiaries holding such ownership interests directly or indirectly; the persons who control the applicant; all officers and directors of the applicant; and any other Cable System. For purposes of this entire section,. "person" means any individual, corporation, partnership, association, joint venture, organization or legal entity of any kind, and any lawful trustee, successor, assignee, transferee or personal representative thereof. (b) A demonstration of the technical, legal and financial ability of the applicant to construct andJor operate the proposed Cable System; (c) A statement prepared by a certified public accountant or duly authorized financial officer of the Applicant regarding the financial ability of the applicant to comply with the terms and conditions of the. Ordinance and Franchise Agreement, and if applicable to complete the construction and/or upgrade and maintain operation of the Cable System; (d) A description of the prior experience of the applicant in Cable System ownership, construction and operation, and identification of communities in which the applicant or any person having a controlling interest in the applicant or having more than a ten percent (10%) ownership interest in the applicant has, or has had, a cable Franchise Agreement or Franchise Agreement or any interest therein; (e) For informational purposes, the proposed rate structure, including projected charges for each Service Tier, installation, converters, and other equipment or services, and the ownership interest of the applicant in any proposed program services to be delivered over the Cable System; (f) A description of cable services offered by the applicant or its parent, affiliate or subsidiary, and applicant's plan with respect to the availability of services to subscribers in the Franchise Area; (g) Where the Transferee is not a publicly traded company, pro forma financial projections far the first three (3) years of the Franchise Agreement term, including a statement of projected income, and a schedule of planned capital additions, with all significant assumptions explained in notes or supporting schedules; 14 ~. (h) If an applicant proposes to provide cable service to an area already served by an existing cable Franchisee, the identification of the area where the overbuild would occur, the potential subscriber density in the area which would ~,,, encompass the overbuild, and the ability of the streets to accommodate an additional system; ~„ (i) Any other information as may be reasonably necessary to demonstrate compliance with the requirements of this Franchise provided that any such further requests shall not toll the time limit for the City to approve or deny the ~. application, in accordance with federal law; and (j) An affidavit or declaration of the applicant or authorized ~. officer certifying the truth and accuracy of the information in the application, acknowledging the enforceability of application commitments, and certifying that to the best of the person's.knowledge the proposal meets all federal and state law requirements. _ Section 23. Other Agreements. If, at any time from and after the execution date of this Franchise Agreement, Franchisee enters into a cable Franchise agreement with either the City of Neptune Beach or the City of Jacksonville Beach to provide services comparable to those provided under this Franchise Agreement, and if such agreement has terms that are in any respect more favorable to such city than the terms established in this Franchise Agreement, Franchisee agrees that Franchisee shall notify the City and, at the City's option, the terms of this Franchise Agreement shall be amended to provide for terms equivalent to those specified in the agreement with the other city. This provision would also apply to the terms of any Cable Ordinance incorporated by reference in any such Franchise Agreement entered into with the City of Jacksonville Beach or the City of Neptune Beach. 15 IN WITNESS WHEREOF, the parties have executed this Amended and Restated Franchise Agreement as of the date first written above. ATTEST: COMCAST OF GREATER FLORIDA/ GEORGIA, INC. By: Its: ATTEST: ~ CITY OF ATLANTIC BEACH BY= City Manager Reviewed and Approved: City Manager Approved: __ --- City Attorney .~ Franchise Agreement Atlantic Beach 01/27/06 •.a ... 16