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HomeMy WebLinkAboutAGENDA REPORT 2004 0915 CC REG ITEM 09FTO: FROM: DATE: MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council Hugh R. Riley, Assistant September 3, 2004 (City 2004) ITEM 9 - F, CITY OF MOORPARK, CALIFORNIA City Council Meeting of 9- /5-aoo�L ACTION: -& BY: Cc �.�,t • • _ City Manage Council Meeting of Sept. 15, SUBJECT: Consider an Agreement with Adelphia Communications Corporation dba Century -TCI California, L.P. for Cable Television Franchise Renewal BACKGROUND On June 6, 1984, the City Council of the City of Moorpark adopted Resolution No. 84 -99 granting a 15 -year, Non - exclusive Franchise for the operation of a cable television system to serve the Urban West Communities' Mountain Meadows Housing Development to Mountain Meadows Cable Television, L.P. This franchise was scheduled to expire on June 6, 1999. The franchise agreement for this system ( "Mountain Meadows System ") was extended to December 20, 2000 by Resolution No. 98 -1550 on December 2, 1998. On November 21, 1990, the City Council adopted Ordinance No. 134 granting a ten -year renewal of a non - exclusive franchise to operate a cable television system in Moorpark to The Chronicle Publishing Co. doing business as Ventura County Cable Vision ( "the Moorpark System "). This franchise was in operation when the City incorporated in 1983. A series of actions were taken to approve the transfer of control for these franchise agreements to various entities as the telecommunications companies were purchased or as mergers were completed. The transfer of control of both franchise agreements to Adelphia was approved by the City of Moorpark between November 21, 1990 and August 18, 1999. A chronological history of these actions by the City of Moorpark is attached to provide a clear understanding of the evolution of the Cable TV systems ownership in Moorpark. In June 2000, the City retained the services of Telecommunications Management Corporation to provide consulting services for the development and negotiation of the franchise renewal and for the development of a revised Cable Television Regulatory Ordinance. 000179 Honorable City Council September 3, 2004 Page 2 The City and Adelphia have been engaged in franchise renewal discussions since December 2001 with interruptions caused chiefly by the filing for Chapter 11 Bankruptcy by Adelphia in June 2002. Various staffing changes at all levels of the reorganized Adelphia following the bankruptcy also served to disrupt and delay the renewal process. DISCUSSION Over the past 15 months, staff has participated in discussions with Adelphia and has prepared a Draft Franchise Renewal Agreement combining both franchises. FRANCHISE AGREEMENT Staff is presenting a Franchise Renewal Agreement with a term of fifteen (15) years that conforms to the City's original renewal objectives. A summary of these objectives is attached to this report. The City Council's Cable TV Ad Hoc Committee (Councilmembers Harper and Millhouse) reviewed the final draft of the agreement and provided comments to staff. The Renewal Agreement includes funding for a $175,000 one -time capital grant from Adelphia to support the purchase of equipment for the City's Cable Access Channel 10. These funds will be made available upon approval of the franchise renewal by both parties. A subsequent grant of $150,000 will be available within five years of the renewal date. These costs may be passed on to system subscribers on a prorated basis over the life of the franchise and the agreement permits Adelphia to itemize such costs to customers in their monthly billing statements. A Summary of these and other key features of the Renewal Agreement is attached. CABLE TV REGULATORY ORDINANCE The City Council is also considering a new Cable TV Regulatory Ordinance amending Section 5.06 of the Municipal Code. The Ordinance was introduced by the City Council on July 21, 2004 and finally adopted on September 1, 2004. The adopted Ordinance is incorporated by reference in the Franchise Renewal Agreement. ( "W0180 Honorable City Council September 3, 2004 Page 3 CONSTRUCTION /MAINTENANCE AGREEMENT FOR I -NET An Agreement for the construction and maintenance of a two -way, fiber - optic, data and voice communications network between public buildings in Moorpark (the I -Net) has also been concluded and is included as an Exhibit to the Franchise Renewal Agreement. Thus the obligation for Adelphia or any successor cable system operator to maintain the I -Net will coincide with the full 15 -year term of the Franchise. The construction of the system and the annual expense to maintain it are included in the renewal provisions at no cost to the City. The I -Net Agreement identifies those present and future public buildings in Moorpark that will be connected to the I -Net including the new Police Services Center, the proposed new City Hall /Civic Center, the new Public Works /Parks Department Corporation Yard and the Arroyo Vista Recreation Center. Present and future facilities at Moorpark Community College and Moorpark Unified School District may be connected to the I -Net for a fixed, proportionate cost for a period of three years from the approval of the Renewal Agreement if those Agency's wish to do so. SYSTEM UPGRADE (REBUILD) The rebuilding and upgrading been completed. The system capabilities and Adelphia is other non -video services to STAFF RECODIlMNDATION of the Moorpark Cable TV System has has been upgraded for fiber optic now offering high speed internet and its customers city -wide. Approve Franchise Renewal Agreement with Adelphia Communications Corporation subject to final language approval by the City Manager and the City Attorney. Attachments: 1. Chronological History of Cable TV in Moorpark 2. Recommended Renewal Objectives 3. Key Features of the Franchise Renewal Agreement 4. Franchise Renewal Agreement 000,1S.0 A CHRONOLOGICAL HISTORY OF CABLE TELEVISION FRANCHISE ACTIONS CITY OF MOORPARK 6/6/84 — Resolution No. 84 -99: 11 /21/90 — Ordinance No. 133: 11/21/90 — Ordinance No. 134 3/20/96 — Resolution No. 96 -1190: 12/2/98 — Resolution No. 98 -1550 1/20/99 — Resolution No. 99 -1565 Granting 15 -year Cable TV Franchise to Mountain Meadows Cable Television, L.P., ( "Mountain Meadows System "). This Franchise expires on June 5, 1999. Cable TV Franchise Ordinance, now Chapter 5.06 of City Code. Granting Cable TV Franchise renewal to The Chronical Publishing Co. dba Ventura County Cable Vision ( "VCC ") ( "Moorpark System "). This Franchise was in place at the time the City was incorporated. This Franchise expires on November 8, 2000. Approving transfer of Ownership of Moorpark System to Telecommunications, Inc. ( "TCI ") Cable Vision of California. Extending Franchise held by Entertainment Express (formerly Mountain Meadows Cable Television) Mountain Meadows System to December 20, 2000. Clarifying Mountain Meadows System and repealing Resolution No. 98 -1550. ATTACHMENT 1 2/5/99 — Resolution No. 99 -1574 5/19/99 — Resolution No. 99 -1611 Approving Change of Control of Moorpark System where TCI becomes wholly owned subsidiary of AT &T. Approving transfer of Moorpark System from TCI of California to Century-TCI California, L.P. 8/18/99 — Resolution No. 99 -1648: Approving change of control of Mountain Meadows System to Adelphia Communications Corporation ( "Adelphia ") 8/18/99 — Resolution No. 99 -1643: 7/18/01- Resolution Nos. 2001 -1869 & 2001 -1870 6/21/02 5/13/04- Resolution Nos. 2004 -2178 & 2004 -2179 7/21/04- Resolution Nos. 2004 -2222 & 2004 -2223 9/1/04- City Ordinance No. 303, Amending Chapter 5.06 Municipal Code. Approving change of control of Moorpark System to Adelphia Communications Corporation. Extending the Mountain Meadows System and the Moorpark System Franchises to December 31, 2001 Adelphia files for Bankruptcy under Chapter 11 Extending the Mountain Meadows System and the Moorpark System Franchises to June 30, 2004 Extending the Mountain Meadows System and the Moorpark System Franchises to September 30, 2004 Cable Regulatory Ordinance owOI 2 D D n 2 R7 M Z N 4> Ca RECOMMENDED RENEWAL OBJECTIVES ITEM RECOMMENDATION COMMENT Service Area All dwelling -units in the City, at standard installation and monthly rates. Commercial areas cabled in accordance with an agreed -upon schedule. Free drop connections, basic cable service and basic Free drop connections and basic cable service Internet access service to all governmental and required by current franchise. educational institutions from the closest node. Franchise Fee 5% of annual gross cable service receipts and the No reason is seen to accept a lower amount. maximum permissible for telecommunications services receipts. Agreement on percentage of revenue from "bundled" services that is subject to the franchise fee. Franchise Renewal Term Based upon enforceable commitment to new This is a major negotiation item, and should be investment in the cable system. determined last. System Upgrading and /or Rebuild to 860 MHz, fiber -to- the -node design to Rebuilding achieve capability for new services, including I -Net, programming, cable modem Internet access and telephony, within a reasonable time Trigger mechanism for activating new services, based Use of a "most favored nations" clause can be upon activation in other comparable systems. considered. System Technical Standards FCC Technical Standards used as minimum standards. Customer Service and FCC standards can be adopted, or more Should have concurrence of cable operator, but Cable Consumer Protection comprehensive standards can be incorporated in a Act grants authority to franchisors to establish Standards new regulatory ordinance. Standards should address reasonable standards unilaterally. telephone availability, response to inquiries and outages, emergency response time and reporting The FCC standards may be used as a minimum, if requirements evidencing compliance with standards, desired. and also penalties for noncompliance. Fiaure 6 (continued) ITEM RECOMMENDATION COMMENT Regulatory Capability To be incorporated in updated regulatory ordinance. Should have concurrence of cable operator, but Cable Act grants authority to franchisors to regulate consistent with federal law. PEG Access Equipment and Funding equivalent of up to 3% of gross revenues for May.require a source of ongoing operating expenses. Facilities PEG access equipment and facilities to be provided by operator, appropriate to meet near -term and future PEG access objectives. Interactive services (I -Net and Internet Access) defined as falling within the PEG category, if utilized by City and educational facilities. PEG Access Channels Provision of dedicated PEG channels based on anticipated level of use. Institutional Network Fiber optic I -Net connecting all public buildings in City, Capabilities with phased expansion to other communities. Service to Businesses City and AT &T to negotiate a plan for serving businesses. Rates City and subscribers to be provided advance notice of rate increases. Service discounts for low- income seniors and the handicapped. Emergency Alert Capability Consistent with FCC requirements. Franchise Enforceability Provision of security fund (preferably cash or letter of The enforcement mechanism should provide relief credit) that can be assessed in the event of franchise prior to entering into litigation. breaches. D C7 Z w CI1 CITY OF MOORPARK PROPOSED CABLE FRANCHISE RENEWAL AGREEMENT KEY FEATURES Franchise Fee 5% of gross cable service receipts, the maximum permitted by law Public, Educational and Governmental . $175,000 initial grant (PEG) Access Support • $150,000 second grant (available after five years) • $0.40 per subscriber per month ongoing grant, payable quarterly (about $9,000 per quarter) continuing through the term of the franchise. • A fiber optic Institutional Network (1 -Net) interconnecting existing and future City buildings. The ongoing grant will cover the I -Net construction, installation and maintenance cost. • School District and Moorpark College have a three -year period to determine whether they wish to be added to the I -Net, at a fixed proportionate cost. • Three PEG Access channels, with a fourth channel available based on level of use on the first three. • Free basic cable service to public buildings. • Four locations wired to originate live cablecasting. • One free cable modem (high -speed Internet access) service to schools and libraries. • A 15% discount on cable modem service to City facilities. Customer Service Standards Measurable and enforceable standards incorporated in the regulatory ordinance. Page 1 of 2 4r I� Cr 01? Citv of Moorpark (continued) Enforcement Capability $25,000 irrevocable, replenishable letter of credit. Can be assessed through administrative action prior to litigation. Liquidated damages up to $200 per day per incident. Covers franchise breaches including customer service standards. Insurance $2,000,000 General Liability $1,000,000 Automobile Liability Statutory Workers' Compensation Indemnification Required to indemnify the City for claims from cable system operations. Franchise Term 15 years Page 2 of 2 September 3, 2004 CABLE SYSTEM FRANCHISE AGREEMENT BETWEEN THE CITY OF MOORPARK AND CENTURY -TCI CALIFORNIA, L.P. EFFECTIVE: October 1, 2004 ATTACHMENT 4 ()00187 TABLE OF CONTENTS SECTION 1 RENEWAL OF FRANCHISE .......................... ............................... 3 SECTION 2 GENERAL REQUIREMENTS ........................ ............................... 5 SECTION 3 SERVICE AREA AND LINE EXTENSION POLICY ......................16 SECTION 4 SYSTEM REBUILD .......................................... .............................17 SECTION 5 SERVICES AND PROGRAMMING ................. .............................19 SECTION 6 SUPPORT FOR LOCAL CABLE ACCESS .... ............................... 20 SECTION 7 REGULATION .................................................. .............................21 EXHIBITS A. OWNERSHIP B. SYSTEM UPGRADE C. GRANTEE COMMITMENT TO PEG ACCESS FACILITIES AND EQUIPMENT D. INSTITUTIONAL NETWORK o0ols8 AGREEMENT This Agreement, made and entered into this fifteenth day of July, 2004, at Moorpark, California, by and between the City of Moorpark, a municipal corporation of the State of California and Century-TCI California, L.P., a limited partnership doing business as Adelphia Cable Communications. RECITALS 1. The City of Moorpark, pursuant to Federal and California law and Chapter 5.06 of the Moorpark Municipal Code, is authorized to grant and renew one or more non - exclusive revocable franchises to operate, construct, maintain and reconstruct a Cable System within the City; and 2. On June 6, 1984, through Resolution No. 84 -99, the Moorpark City Council granted a Cable System Franchise to Mountain Meadows Cable Television, a California Limited Partnership. The Franchise authorized service in the "Mountain Meadows" development of the City; and 3. In 1989, the City enacted Chapter 6, Title 5 of the Municipal Code. Pursuant to the requirements of this Chapter, the City renewed its previously granted Franchise with the Chronicle Publishing Company ( "Chronicle "), dba Ventura County Cablevision ( "VCC "). The Franchise renewal terms were contained in Ordinance No. 134, adopted November 21, 1990. The service area for this Franchise included all of the City except the Mountain Meadows development; and 1 6;001.89 4. In June 1995, Chronicle entered into an agreement with Tele- Communications, Inc. ( "TCI ") by which TCI acquired Chronicle's Cable System assets. The City approved the transfer of the VCC Franchise to TCI through Resolution No. 96 -1190, adopted March 20, 1996. Subsequently, TCI placed its Cable Systems into a partnership controlled by Century Communications Corp. ( "Century"). The City approved the change of control to Century under Resolution No. 99 -1641, adopted October 11, 1999; and 5. At approximately the same time the Century partnership was established, Century itself was acquired by Adelphia Communications Corp. ( "Adelphia "). Adelphia has been operating the City's Cable System since late 1999; and 6. Adelphia acquired the Mountain Meadows Cable System, as approved by Resolution No. 99 -1643, adopted August 18, 1999; and 7. The City, on July 21, 2004, amended Chapter 5.06 of the Moorpark Municipal Code, which amendment applies to all Cable System Franchises granted or renewed after the Effective Date of the amendment; and 8. The City, after due evaluation of Adelphia, and after public hearings, has determined that it is in the best interests of the City and its residents to renew its Franchise with Adelphia, and to consolidate the two (2) existing Franchises into one (1) Franchise; and 9. NOW, THEREFORE, the City of Moorpark (hereinafter the "Grantor ") hereby grants to Adelphia (hereinafter the "Grantee ") a renewal of its Cable System Franchises in accordance with the provisions of Chapter 5.06 of the Moorpark Municipal Code and this Agreement. 2 0001,90 SECTION 1 RENEWAL OF FRANCHISE 1.1 Grant (a) The two (2) Cable System Franchises currently held by Adelphia Cable Communications, commonly known as the "Mountain Meadows" Franchise and the "TCI" Franchise are hereby renewed, subject to the terms and conditions of this Agreement. Upon the Effective Date of this Agreement, this Agreement shall supersede both the Mountain Meadows and TCI Cable System Franchises. (b) The current ownership of Grantee, Century-TCI California, L.P., is indicated in Exhibit "A." (c) This Agreement extends the franchise, authority, right and privilege, to construct, reconstruct, operate and maintain a Cable System within the streets and public ways in the City of Moorpark and also provides the authority to offer to Subscribers any Cable Service that legally may be offered, utilizing the facilities of Grantee's Cable System. 1.2 Right of Grantor to Issue and Renew Franchise Grantee acknowledges and accepts the present right of Grantor to issue and /or renew a Franchise and Grantee agrees it shall not now or at any time hereafter challenge any lawful exercise of this right in any local, State or Federal court. This is not, however, a waiver of any constitutional or legal right or privilege on the part of the Grantee. 1.3 Effective Date of Renewal The renewal shall be effective on , 2004 (the "Effective Date "), contingent upon prior City Council approval and the filing by Grantee with the City Clerk, of the executed Franchise Agreement and the required security fund, performance and materials bonds and insurance certificates by the Effective Date. If the filing of the executed Franchise Agreement, security fund, 3 000191 performance and materials bonds or any such insurance certificates does not occur by the Effective Date of this Agreement, the Grantor may declare this Agreement null and void. 1.4 Duration The term of the renewal shall be fifteen (15) years from the Effective Date hereof, after which time it shall expire and be of no force and effect unless renewed or extended. Renewal shall be in accordance with applicable law. 1.5 Conflict with Municipal Code (a) The provisions of Chapter 5.06 of the Moorpark Municipal Code are hereby incorporated herein by reference as if set out in full, and form part of the terms and conditions of this Agreement. In event of any conflict between the terms and conditions of this Agreement and the provisions of Chapter 5.06 of the Moorpark Municipal Code, this Agreement shall prevail. (b) Should Chapter 5.06 of the Moorpark Municipal Code be amended, revised, superseded or otherwise changed after the Effective Date hereof in such way as would materially affect the terms and conditions of this Agreement, said amendment, revision or change shall not apply to this Agreement without Grantee's approval. 1.6 Definitions The definitions contained in Chapter 5.06 of the Moorpark Municipal Code are incorporated herein as if fully set forth. 4 000192 SECTION 2 GENERAL REQUIREMENTS 2.1 Governing Requirements Grantee shall comply with all lawful requirements of this Agreement, Chapter 5.06 of the Moorpark Municipal Code and applicable State and Federal law. 2.2 Franchise Fee (a) The Grantee shall pay to the Grantor an annual Franchise Fee of five percent (5 %) of Gross Annual Cable Service Revenues, received by the Grantee and derived from the operations of the Cable System in the City of Moorpark to provide Cable Service. If Federal or State law permits an annual Franchise Fee greater than five percent (5 %), the Grantee shall be entitled to the maximum fee allowable by law. (b) If Federal or State law permits the Grantee to provide non- video Telecommunications Services to Subscribers (such as telephone communications) or other non -Cable System services through the facilities of the Cable System, and the Grantor has the regulatory authority to collect either a Franchise Fee or an in- lieu -of- franchise -fee payment on such services, then the Grantee shall pay a fee for revenues derived by the Grantee from such services at the rate established in an Ordinance adopted by the City Council and applied in a non - discriminatory manner to all providers of such services franchised by Grantor. (c) For the purposes of this Agreement, revenues collected as Franchise Fees shall be included in Gross Annual Cable Service Revenues. 5 000193 (d) For the purposes of this Agreement, revenues collected from Subscribers for the Public, Educational and Governmental Access capital grants of Exhibit "C" shall be included in Gross Annual Cable Service Revenues. (e) The Franchise Fee shall be payable quarterly, by no later than sixty (60) days following the quarter for which payment is due. (f) The payment for each calendar quarter shall be accompanied by a written report from Grantee that contains at least the following information: (1) The total Gross Annual Cable Service Revenue from the provision of Cable Service, and an itemization of the various categories of Gross Annual Cable Service Revenue collected during that calendar quarter; and (2) The average and total number of Subscribers at the end of each calendar month during the calendar quarter; and (3) The total amount recovered by Grantee from Subscribers for the PEG Access capital grant of Exhibit C, Paragraph 5(b) of this Agreement. (g) Grantor acknowledges that, during the term of this Agreement, Grantee may offer to its Subscribers, at a discounted rate, a bundled or combined package of services consisting of Cable Services, which are subject to the Franchise Fee referenced above in paragraph (a), and other non -Cable Services that are not subject to the Franchise Fee. Grantee shall not allocate revenue between Cable Services and non -Cable Services for the purpose of reducing Grantee's Franchise Fee obligation pursuant to this Agreement. s 000194 2.3 Payment to Grantor No acceptance of any payment shall be construed as an accord that the amount is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim the Grantor may have for further or additional sums payable under the provisions of this Agreement. All amounts shall be subject to audit, as authorized by Section 5.06.910(b) of the Moorpark Municipal Code. Audits shall be limited to no more than one (1) for any three (3) year Franchise period. 2.4 Insurance (a) Grantee shall procure and maintain for the duration of the Franchise insurance against claims for injuries to persons or damages to property which may arise from or in connection with the operation of the franchise by the Grantee, its agents, representatives, employees or subcontractors. (b) Grantee shall maintain limits no less than: (1) General Liability: Two Million Dollars ($2,000,000) per occurrence for bodily personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Franchise or the general aggregate limit shall be twice the required occurrence limit. This limit shall increase to Two Million Five Hundred Thousand Dollars ($2,500,000) in year five (5) or the franchise and to Three Million Dollars ($3,000,000) in year ten (10) of the franchise. (2) Automobile Liability: One Million Dollars ($1,000,000) per accident for bodily injury and property damage. (3) Workers' Compensation insurance as required by the State of California, and Employer's Liability Insurance. 7 () () 0.35 (c) Any deductibles or self- insured retentions must be declared to Grantor. At the option of the Grantor, the Grantee shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. (d) The general liability and automobile liability policies are to contain all the following provisions: (1) Grantor, its officers, officials, employees, agents and volunteers are to be covered as additional insureds as respects to any liability arising out of activities performed by or on behalf of Grantee; products and completed operations of Grantee; premises owned, occupied or used by Grantee; or automobiles owned, leased, hired or borrowed by Grantee. The coverage shall contain no special limitations on the scope of protection afforded to Grantor, its officers, officials, employees, agents or volunteers, and shall name Grantor as additionally insured. (2) For any claim related to this Agreement, Grantee's insurance coverage shall be primary insurance as respects Grantor, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by Grantor, its officers, officials, employees, agents or volunteers shall be excess of Grantee's insurance and shall not contribute with it. (3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to Grantor, its officers, officials, employees, agents or volunteers. (4) Grantee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 0001-016 E-1 (5) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to Grantor. (6) Insurance shall be placed with insurers which are "admitted" in the State of California and have a current A.M. Best's rating of no less than A -:VII, unless otherwise reasonably acceptable to the Grantor. (7) Grantee shall furnish the Grantor with original certificates of insurance effecting coverage required by this section. Any endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by, or otherwise acceptable to, the Grantor. All endorsements are to be received and approved by Grantor before activity commences. (e) Grantee shall submit to Grantor documentation of the required insurance including a certificate of insurance signed by the insurance agent and companies named, as well as all properly executed endorsements. (f) Grantee hereby indemnifies Grantor for any damage resulting to it from failure of either Grantee or any subcontractor to take out and maintain such insurance. 2.5 Indemnification (a) Grantee shall indemnify, hold harmless, release and defend Grantor, its officers, employees and agents from and against any and all actions, claims, demands, damages, disability, losses, expenses including attorney's fees and other defense costs or liabilities of any nature that may be asserted by any person or entity, including Grantee, from any cause whatsoever arising from the s 000197 activities of Grantee, its subcontractors, employees and agents hereunder. Grantee shall be solely responsible and hold Grantor harmless from all matters relative to payment of Grantee's employees including compliance with Social Security, withholding, etc. (b) This indemnification obligation is not limited in any way by a limitation on the amount or type of damages or compensation payable by or for Grantee under Workers' Compensation, disability or other employee benefit acts, acceptance of insurance certificates required under this Agreement, or the terms, applicability or limitations of any insurance held by Grantee. (c) Grantor does not, and shall not, waive any rights against Grantee which it may have by reason of this indemnification, because of the acceptance by Grantor, or the deposit with Grantor by Grantee, of any of the insurance policies described in this Section. (d) This indemnification by Grantee shall apply to all damages and claims for damages of any kind suffered by reason of any of the aforesaid operations referred to in this Section, regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. (e) Grantee shall not be required to indemnify Grantor for negligence or misconduct on the part of Grantor or its officials, boards, commissions, agents, or employees (hereinafter "Such Acts "). Grantor shall hold Grantee harmless from any damage resulting from any such acts of the Grantor or its officials, boards, commissions, agents or employees in utilizing any government or educational access channels, emergency alert system facilities, Institutional Network capability and for any Such Acts committed by Grantor in connection with work performed by Grantor and permitted by this Agreement, on or adjacent to the Cable System. 10 tF00ISS (f) Grantor shall give the Grantee timely written notice of any claim or of the commencement of any action, suit or other proceeding covered by the indemnity of this Section. In the event such claim arises, the Grantor or any other indemnified party shall tender the defense thereof to Grantee and the Grantee shall have the right to defend, settle or compromise any claims arising hereunder and the Grantor shall cooperate fully therein. 2.6 Security Fund (a) In accordance with Section 5.06.920 of the Moorpark Municipal Code, upon the Effective Date of this Agreement, Grantee shall establish and provide to Grantor a security fund (hereinafter "Security Fund "), as security for the faithful performance by Grantee of all material provisions of this Agreement. The Security Fund shall be in the amount of at least Twenty -Five Thousand Dollars ($25,000) and shall either be in the form of an irrevocable letter of credit, or a cash deposit established in a local bank in an interest- bearing account payable to the order of the Grantor as trustee for Grantee, with all interest distributed to the Grantee. (b) The Security Fund shall be maintained at the Twenty -Five Thousand Dollar ($25,000) level throughout the term of this Agreement, provided that at intervals no more often than each three (3) years, Grantor shall have the right to require that this amount be increased to reflect changes in the Los Angeles Metropolitan Area Consumer Price Index during the prior three (3) year period. (c) The Security Fund may be assessed by Grantor for those purposes specified in Section 5.06.920 of the Moorpark Municipal Code, in 11 000199 accordance with the procedures of Section 5.06.1520 of said Municipal Code, provided that Grantee has received written notice to cure any material violations prior to any assessment, in accordance with Section 2.7 herein. As long as the Grantor follows the procedures specified herein and in Chapter 5.06 of the Moorpark Municipal Code for assessing and /or withdrawing funds from said Security Fund, Grantee shall not initiate litigation or non -City administrative action to prevent or impair Grantor from accessing those funds. Grantee's recourse, in the event Grantee believes any taking of the Security Fund is improper, shall be through legal action after the security has been drawn upon. If the Grantor's action or taking is found to be improper by any court or agency of competent jurisdiction, Grantee shall be entitled to a refund of the assessed portion of the Security Fund plus interest and /or any other award which such court or agency shall make. (d) At some time during this Agreement, Grantee may elect, but is not required, to perform a Cable System rebuild or upgrade. Not less than thirty (30) days prior to Grantee's commencement of such future Cable System rebuild or upgrade, the - Grantee shall establish a One Hundred Twenty Five Thousand Dollar ($125,000) Construction Bond. Subsequent to the completion of the future rebuild or upgrade, as certified in writing by Grantee to Grantor, and approved and verified in writing by Grantor, Grantee may reduce said Construction Bond to Seventy Five Thousand Dollars ($75,000) for a period of twelve (12) months, and shall be available for corrective work within the Public Right of Way resulting from Grantee's construction work. At the end of the twelve (12) month period, this bond shall be released if there are no outstanding compliance issues. 12 000200 (e) Nothing herein shall be deemed a waiver of the normal permit and bonding requirements made of all contractors working within the City's rights -of -way. 2.7 Procedure for Remedying Franchise Violations (a) The procedure for remedying Franchise violations or breaches shall be consistent with the procedures of Chapter 5.06.1520 of the Moorpark Municipal Code. Grantor, by action of the City Manager or a delegate, shall first notify Grantee of the violation in writing by personal delivery or registered or certified mail, and demand correction or commencement of correction within a reasonable time, which shall not be less than fifteen (15) days in the case of the failure of the Grantee to pay any sum or other amount due the Grantor under this Agreement or Chapter 5.06 of the Moorpark Municipal Code, and thirty (30) days in all other cases. If Grantee fails to demonstrate that a violation has not occurred, or to correct the violation within the time prescribed, or if Grantee fails to commence corrective action within the time prescribed and diligently remedy such violation thereafter, or if the violation is not correctable, the Grantee shall then be given written notice from the City Manager finding the Grantee in violation of this Agreement. Said notice shall specify the violations alleged to have occurred. (b) In the event the City Manager finds that a material violation exists and that Grantee has not corrected the same in a satisfactory manner or has not diligently commenced correction of such violation, the City Manager may request the City Council to impose liquidated damages, assessable from the Security Fund, of up to Two Hundred Dollars ($200) per day or per incident for all violations. Damages shall accrue from the date of the violation. 000201 13 (c) If the City Council elects to assess liquidated damages, pursuant to the provisions of this Franchise Agreement, then such election shall constitute Grantor's exclusive remedy for a period of one hundred twenty (120) days. Thereafter, if the Grantee remains in non - compliance with the requirements of the Franchise Agreement, the Grantor may pursue any available remedy, provided, however, that Grantor may institute revocation proceedings against Grantee only after declaration of default on the grounds set forth in Section 5.06.1530 of the Moorpark Municipal Code. (d) When determining whether to impose liquidated damages, the City Council shall hear and consider all relevant evidence, and thereafter render written findings and its written decision. The hearing shall provide Grantee with the full opportunity to participate and present evidence. (e) In the event the City Council finds that no material violation exists, the proceedings shall terminate and no penalty or other sanction shall be imposed. In determining whether a violation is material, Grantor shall take into consideration the reliability of the evidence of the violation, the nature of the violation and the damage (if any), caused to the Grantor thereby, whether the violation was chronic, and any justifying or mitigating circumstances and such other matters as the Grantor may deem appropriate. 2.8 Reservation of Rights Grantor and Grantee reserve all rights that they may possess under the law unless expressly waived herein. By entering into this Agreement, neither Grantee nor Grantor waives any rights which it now or may later enjoy under applicable law, and specifically Grantor and Grantee reserve their rights to take full advantage of any changes in law during the term of the franchise. 14 000202 2.9 State or Federal Preemption In the event that the State or Federal Government discontinues preemption in any area of Cable System regulation over which it currently exercises jurisdiction in such manner as to expand rather than limit municipal regulatory authority, Grantor may, if it so elects, adopt rules and regulations in these areas, to the extent permitted in the then applicable law. If such preemption has a material impact upon the term of this Agreement, Grantor and Grantee agree to negotiate in good faith to attempt to restore the mutual considerations provided in this Agreement. 2.10 Other Franchises Upon the initial award or renewal of any Cable System Franchise approved by Grantor pursuant to the provisions of Chapter 5.06 of the Moorpark Municipal Code to other grantees, Grantor shall comply with the requirements of applicable law. 2.11 Subscriber Notices At a minimum, notice shall be provided by Grantee to affected residents in the Service Area not less than twenty -four (24) hours of planned construction. Additional notice shall be provided on the day of construction. Said notice may be in the form of "door hangers" which indicate the date(s) and time(s) of construction, and the name and telephone number of a Grantee contact for inquiries. For Cable System construction which may impact all, or a substantial portion of System Subscribers simultaneously, Grantee shall provide appropriate written notice to Subscribers not less than twenty -four (24) hours prior to such construction. As the term is used herein, "substantial portion" shall mean ten percent (10 %) or more of System Subscribers. 15 0t� i)G03 In all cases, construction crews shall have additional copies of the above- described notices that shall be provided to any requesting individual. SECTION 3 SERVICE AREA AND LINE EXTENSION POLICY 3.1 Franchise and Service Area The Grantee's Franchise and Service Areas shall be the entire City of Moorpark including any and all territory immediately adjoining this area as may be annexed thereto, during the term of this Agreement. The Grantee shall offer the full range of residential Cable Services to all residents of the Franchise and Service Area, in accordance with the provisions of Section 3.2 below. 3.2 Provision of Service The Grantee shall provide residential Cable Service at standard installation charges, provided that the residential unit is within one hundred twenty five (125) feet for aerial and underground installations from the nearest distribution cable of the Grantee's system. In the event a request is made for service by a resident in an area not meeting such criteria, the Grantee may charge an installation fee equal to Grantee's cost of time and materials plus customary overhead for the incremental portion of the installation beyond the footage limitation established above. 3.3 Line Extension Policy Within the boundaries of the Service Area, Grantee shall extend service upon request to any Person or business for no charge other than the then prevailing normal installation charge, so long as such Person or business is within one hundred twenty -five (125) feet of the closest distribution cable of Grantee's Cable System, unless the Grantee demonstrates to the Grantor's satisfaction that extraordinary circumstances justify a waiver of this requirement. 16 f)00204 3.4 Commercial Areas For areas of the City that are primarily commercial, the Grantee shall install appropriate conduit at any time that open utility trenches are available and the Grantee has received at least thirty (30) working days advance notice of the availability of the trenches. Residences in primarily commercial areas shall be provided with Cable Service upon request, at an installation fee equal to Grantee's costs of time and materials plus customary overhead. SECTION 4 SYSTEM REBUILD 4.1 Rebuild The Grantor and the Grantee agree that the Cable System has been rebuilt, as of the Effective Date of this Agreement to provide a minimum capacity corresponding to an upper operating frequency of Eight Hundred Sixty (860) Megahertz (MHz), 4.2 Institutional Network Capability (a) . Within six (6) months of the Effective Date of this Agreement, the Grantee shall provide Institutional Network (hereinafter "I- Net ") capability among the public buildings in Grantee's Service Area, in accordance with the requirements of Exhibit "D" attached hereto. An I -Net connection is defined as the capability to transmit and receive broadband video, data and voice communications between two (2) or more public buildings, contingent only upon the installation of appropriate terminal and interface equipment in the future, at the transmission and reception public building locations. The public agency users shall be responsible for the installation, operation and maintenance of terminal and interface equipment within the public buildings and for implementing measures regarding signal security. The Grantee shall install, operate and maintain all Cable System and network components outside the 17 000205 public buildings necessary to provide the activated path between the transmitting and receiving locations. (b) Grantor and Grantee agree that any use of the I -Net capability by public agencies to generate revenue or to serve nonpublic entities shall occur only with the prior written consent of Grantee. 4.3 Emergency Alert Capability Upon the Effective Date of this Agreement, Grantee shall provide Emergency Alert System capability in full compliance with applicable Federal Communications Commission requirements. Grantee shall establish procedures for Grantor access and use of this system in case of an emergency. 4.4 Standby Power Upon the Effective Date of this Agreement, Grantee shall provide standby power generating capacity at the Cable System control center and at all hubs capable of providing at least twenty four (24) hours of emergency supply. Grantee shall maintain standby power system supplies throughout the major trunk cable networks capable of providing emergency power within the standard limits of commercially available power supply units. 4.5 Parental Control Lock Grantee shall provide, for sale or lease, to Subscribers, upon request, a parental control locking device or digital code that prevents the distribution of the video and audio portions of premium channels. 4.6 Status Monitoring Grantee shall provide an automatic status monitoring system or a functional equivalent when the Cable System has been activated for interactive service provided that such status monitoring is technically and economically feasible to Grantee's satisfaction. 18 0100206 4.7 Technical Standards The Federal Communications Commission (FCC) Rules and Regulations, Part 76, Subpart K (Technical Standards), as amended from time to time, shall apply, to the extent permitted by applicable law. 4.8 Right of Inspection Grantor shall have the right to inspect all construction, reconstruction or installation work performed subject to the provisions of the franchise and other pertinent provisions of law, and as part of Grantor's obligation to protect the public health, safety and welfare of its citizens. SECTION 5 SERVICES AND PROGRAMMING 5.1 Services and Programming (a) Grantee shall provide Grantor with a list of program services offered, which list shall be updated each time a material change is made. Grantee shall not reduce the number of program services without thirty (30) days prior written notification to the Grantor and Cable System Subscribers unless caused by circumstances beyond Grantee's reasonable control. Grantee shall, as a minimum, continue to provide the broad categories of programming detailed in the list of program services offered throughout the term of this Agreement. (b) To the extent possible, Grantee shall limit the number of planned Channel line -up changes, including the Channels on which existing services are offered. It is the intent of this Section to limit Subscriber confusion resulting from frequent Channel realignment. 5.2 Leased Channel Service Grantee shall offer leased channel service on terms and conditions in accordance with applicable federal law. 19 00020"f SECTION 6 SUPPORT FOR LOCAL CABLE ACCESS 6.1 Grantee Support for PEG Access Grantee shall provide the following or equivalent support for Public, Educational and Governmental ( "PEG ") Access within the Franchise Area: (a) Provision and use of the grant funds and channels designated in Exhibit "C" of this Agreement for local PEG Access. (b) Maintenance of Grantee's PEG Access channels and capital support of PEG Access programming to the extent specified in Exhibit "C" of this Agreement. (c) Provision of free public building installation and the highest tier of basic service to the public buildings listed in Exhibit "C." (1) Within six (6) months of Grantor's written request, Grantee shall activate, at no charge at least one (1) outlet to the Moorpark Unified School District (MUSD) Public Schools listed in Exhibit "C" Figure 1(B) that are not activated as of the Effective Date of this Agreement. (2) Within six (6) months after Grantor's written request, and contingent on Grantee's access and use of the existing Moorpark College underground conduit, Grantee shall activate at no charge, at least one (1) outlet to the Moorpark College building sites listed in Exhibit "C" Figure 1 (B) that are not activated as of the Effective Date of this Agreement. (d) Grantee shall provide, at no charge, one (1) installation and monthly service for high -speed Internet access service to the schools and libraries designated in Exhibit "C" at such time as Grantee offers such service to Subscribers. (e) Provision of interactive I -Net capability to and from the locations specified in Exhibit "D," and in accordance with the terms and conditions of Exhibit "D." 20 000208 6.2 Compliance with Federal Law In accepting this Franchise, the Grantee agrees that the commitments indicated in Section 6.1 above are voluntarily entered into and shall not be charged against any Franchise Fees due the Grantor during the term of the Franchise. The Grantee agrees to meet all of the commitments of Section 6.1 above, through the term of the Franchise. SECTION 7 REGULATION 7.1 Franchise Regulation The Franchise renewed under this Agreement shall be subject to regulation by Grantor in accordance with all of the lawful provisions of Chapter 5.06 of the Moorpark Municipal Code. 7.2 Force Majeure The force majeure provisions of Section 5.06.1600 of the Moorpark Municipal Code shall apply. 7.3 Rate Regulation If Grantor is permitted under Federal and /or State law, to regulate the rates charged by Grantee, and if Grantor elects to so regulate, Grantor shall establish reasonable procedures consistent with due process and applicable laws and regulations and follow those procedures before so regulating. 7.4 Service Standards A verified and continuing pattern of noncompliance with the Customer service standards contained in Chapter 5.16.1100 of the Moorpark Municipal Code and /or this Agreement shall constitute a material breach of this Agreement, entitling Grantor to utilize the provisions set forth in Section 5.16.1500 in the Moorpark Municipal Code. 21 000209 7.5 Notices Notices transmitted by either party to this Agreement to the other party shall be addressed as follows: Grantor: City Manager City of Moorpark City Hall 799 Moorpark Avenue Moorpark, CA 93021 Grantee: Area Manager Adelphia Cable Communications 2323 Teller Road Newbury Park, CA 91320 With a copy to: Government Affairs Adelphia Cable Communications 3100 Ocean Park Blvd., #300 Santa Monica, CA 90405 Either party at any time may designate by written notice a different address to which notices shall be sent. 7.6 Successors and Assigns All provisions of this Agreement shall apply to any lawful successors and assigns. 7.7 Separability If any provision of this Agreement or the application of such provision to any circumstance is rendered unconstitutional or otherwise invalid any law, ordinance, regulation or court of competent jurisdiction, the remainder of this Agreement or the application of the provision to other circumstances, shall not be affected thereby. 7.8 Choice of Law This Agreement shall be governed by and interpreted under the laws of the State of California. 22 (F00210 7.9 No Waiver Grantee shall not be excused from complying with any of the terms and conditions of this Agreement by any failure of the Grantor upon any one (1) or more occasions to insist upon or to seek compliance with any such terms or conditions. 7.10 Possessory Interest By accepting this Franchise, Grantee acknowledges that notice is and was hereby given pursuant to California Revenue and Taxation Code Section 107.6 that use or occupancy of any public property pursuant to the authorization herein set forth may create a possessory interest which may be subject to the payment of property taxes levied upon such interest. Grantee shall be solely liable for, and shall pay and discharge prior to delinquency, any and all possessory interest taxes or other taxes levied against Grantee's right to possession, occupancy, or use created by this Franchise. Grantee shall not be barred from challenging any amounts assessed pursuant thereto. 7.11 Exhibits Exhibits "A" through "D" are an integral part of this Agreement. All references to this Agreement shall include all Exhibits. IN WITNESS WHEREOF, Grantor and Grantee have executed this Agreement the date and year first above written. APPROVED AS TO FORM: CITY OF MOORPARK Date: 23 000211 (SEAL) ATTEST: City Clerk CENTURY -TCI CALIFORNIA, L.P. doing business as ADELPHIA CABLE COMMUNICATIONS By: Name, Title Date: 24 000w12 A -1 EXHIBIT A OWNERSHIP Century -TCI California L.P. Ownership Chart 0,00 213 B -1 EXHIBIT B CABLE SYSTEM DESCRIPTION AS OF JULY, 2004 (1) DESCRIPTION OF CABLE SYSTEM Grantee shall operate a state -of- the -art Cable System designed to meet the needs of Moorpark residents for the foreseeable future. Grantee's Cable System capacity shall, at a minimum, be an Eight Hundred Sixty Two Megahertz (862 MHz) hybrid fiber - coaxial (HFC) network with fiber optics lines from the headend to nodes throughout the Franchise Area. At each node the signals enters the coaxial network for transmission to the home. The Eight Hundred Sixty Two Megahertz (862 MHz) Cable System is capable of providing hundreds of service using both analog and digital Channels. Each analog video Channel requires Six Megahertz (6 MHz), however through the use of digital Channels, Grantee has the ability using existing technology to provide eight (8) to ten (10) video Channels in the same Six Megahertz (6 MHz) spectrum. The two -way capability of the Cable System allows for high -speed Internet service and "impulse" ordering of pay - per -view services, as well as accommodating telephony and video -on- demand services in the future. High- speed Internet services will use the Data Over Cable Service Interface Specification ( DOCSIS) industry standard, enabling customers to purchase any DOCSIS cable modem and, should the customer move, use the same modem in their new location provided the Cable System uses the DOCSIS standard. Grantees' Cable System standard uses a "node plus four (4)" architecture, with a goal of no more than four (4) amplifiers used between the fiber node and homes. This design takes the fiber deeper into the Cable System so fewer 000214 M homes are sharing the same fiber, resulting in more capacity to meet the individual needs of customers. Each node is designed to serve approximately Five Hundred (500) homes. All nodes have standby power rated to provide a minimum of three (3) hours of operation in the event of a commercial power disruption. The headend will have standby power capable of providing Twenty Four (24) hours of power in the event of a commercial power interruption. The Cable System forward (to Subscribers) bandwidth is a minimum of Fifty Four to Eight Hundred Sixty Two Megahertz (54 -862 MHz). The reverse bandwidth (from Subscribers to Grantee) is a minimum of Five to Thirty Megahertz (5 -30 MHz). (2) HEADEND LOCATION 12052 Silvercrest Street (3) NODE LOCATIONS fSee following pages.l �_ ►0 02 15 B -3 Node # Map # Address of Node MP001 85 -18 SE corner of Mountain Trail & Sunsetridge Road MP002 88 -18 Mountain Meadow Dr. 54 ft. East of Blossomwood Ct. MP003 88 -20 NW corner of Mountain Trail St. & Mountain Meadow Dr. MP004 85 -20 Between Addresses 11337 &11349 Rosecreek Dr. MP005 85 -20 Between Addresses 11248 & 11260 Countrywood Dr. MP006 91 -18 Between Addresses 12049 & 12057 Havencrest St. MP007 88 -18 Between Addresses 11906 & 11912 Silvercrest St. MP008 91 -18 Between Addresses 12577 & 12591 Misty Grove St. MP009 91 -18 Between Addresses 12470 & 12490 Cherry Grove St. MP010 88 -18 11875 Mirabella St. MP011 88 -18 3907 Revello St. MP012 91 -20 Between Addresses 12088 & 12090 Alderbrook St. MP013 88 -18 Between Addresses 11844 & 11848 Alderbrook St. MP014 88 -20 Between Addresses 11651 & 11659 Pinedale Rd. MP015 88 -20 Between Addresses 4334 & 4344 Timberdale Rd. MP016 91 -22 Mountain Trail St. 103 ft. East of Skyglen Ct. MP017 91 -20 Between Addresses 12505 & 12507 Willow Hill Dr. MP018 91 -22 NW corner of Mountain Trail St. & Walnut Creek Rd. MP019 91 -22 NE corner of Walnut Creek Rd. & Country Meadow Rd. MP019 91 -22 NE corner of Walnut Creek Rd. & Country Meadow Rd. MP020 91 -18 Between Addresses 12164 & 12182 Alder rove St. MP021 94 -20 Between Addresses 4274 & 4280 Ambermeadow St. MP022 94 -22 Between Addresses 12960 & 12976 E. Mesa Verde Dr. MP023 94 -22 Between Addresses 4551 & 4555 Vista ark Dr. MP024 94 -20 Between Addresses 13062 & 13096 E. Cloverdale St. MP025 6309 -1934 University Dr. 254 ft. North of Sophomore Ct. MP026 6306 -1932 SE c/o Collins Dr. & University Dr. MP027 6306 -1934 Hearon Dr. 225 ft. North of Braun Ct. MP028 6306 -1932 Between Addresses 7052 & 7068 Pecan Ave. MP029 6306 -1930 Between Addresses 11521 & 11523 Kernvale St. MP030 6300 -1930 College Heights Dr. 643 ft. West of E. Westwood St. MP031 6300 -1932 Between Addresses 6997 & 6999 Hastings St. MP032 6300 -1930 Between Addresses 14480 & 14492 E. Purdue St. MP033 6300 -1930 Between Addresses 14449 E. Amherst St. & 6603 N. Columbia Ave. MP034 6303 -1930 Between Addresses 14717 & 14725 E. Standford St. MP035 6303 -1930 6732 Julliard Ave. MP036 6303 -1930 15076 Varsity St. MP037 6303 -1930 Between Addresses 14859 & 14867 E. Stanford St. MP038 6303 -1930 14962 Reedley St. MP039 6303 -1932 Between Addresses 14931 & 14939 Marquette St. MP040 6306 -1930 Marquette St. 263 ft. North Campus Park Dr. MP041 6306 -1930 15166 Campus Park Dr. MP042 6306 -1930 6516 Marquette St. MP043 6306 -1930 Campus Park Dr. 217 ft. West of Marquette St. MP044 6300 -1928 SE corner of Los Angeles Ave. & Condor Dr. f�00016 ME MP045 6309 -1928 15750 E. Los Angeles Ave. Between Space #124 & #125 MP046 6306 -1928 15750 E. Los Angeles Ave. Between Space #198 & #199 MP047 6309 -1928 15750 E. Los Angeles Ave. Between Space #14 MP048 85 -24 Between Addresses 4787 & 4807 Butter Creek Rd. MP049 85 -22 Between Addresses 4613 & 4615 Pepper Mill St. MP050 94 -20 E. Inglewood St. 139 ft. East of N. Ashtree St. MP051 94 -22 Between Addresses 13307 & 13315 Peach Hill Rd. MP052 94 -20 Between Addresses 13258 & 13274 E. Quail Summit Rd. MP053 94 -20 SE corner of Peach Hill Rd. & E. Honeybee St. MP054 94 -22 Between Addresses 13090 & 13100 Knofty Pine St. MP055 91 -20 SW c/o of Walnut Creek Rd. & Spring Creek Ct. MP056 91 -18 Walnut Creek Rd. 77 ft. North of Crystal Ranch Rd. MP057 97 -22 4456 Vista Del Valle Dr. MP058 97 -22 NW corner of Vista Dr. & Adons PI. MP059 97 -22 Between Addresses 13705 & 13713 E. Laurelhurst Rd. MP060 97 -22 Peach Hill Rd. 168 ft. East of Mill Valley Rd. MP061 97 -20 4273 E Laurelhurst Rd. MP062 97 -20 Between Addresses 13631 & 13639 Bear Valley Rd. MP063 94 -20 Williams Ranch Rd. 30 ft. East of Laurel Glen Dr. MP064 94 -20 Between Addresses 4214 & 4240 Tecolote Ct. MP065 97 -20 Between Addresses 13486 & 13492 Christian Barrett Dr. MP066 97 -20 Between Addresses 4231 & 4255 Cedar Pine Ln. MP067 97 -24 Between Addresses 580 & 588 Spring Rd. MP068 94 -18 Between Addresses 13060 & 13070 View Mesa St. MP069 94 -20 Between Addresses 4031 & 4043 Cone'o Mesa St. MP070 88 -24 Between Addresses 4887 & 4893 Tallmad a Rd. MP071 88 -24 Between Addresses 4796 & 4802 Elderberry Ave. MP072 88 -22 Between Addresses 11762 & 11774 Butter Creek Rd. MP073 91 -24 Los Angeles Ave. 158 ft. West of Shasta Ave. MP074 91 -24 Between Addresses 12409 & 12421 James Weak Ave. MP075 88 -28 Gabbert Rd. 35 ft. Southeast of Elwin St. MP076 97 -24 Spring Rd. 187 ft. South of Los Angeles Ave MP077 94 -22 Between Addresses 12976 & 12960 E. Mesa Verde Dr. MP078 94 -24 NE corner of Flory Ave. & Los Angeles Ave. MP079 94 -24 151 Majestic Ct. Unit # 608 MP080 91 -26 Poindexter Ave. 229 ft. West of Sierra Ave. MP081 94 -26 Between Addresses 420 & 436 Bard St. MP082 94 -26 Between Addresses 161 & 171 Charles St. MP083 94 -28 963 Walnut Canyon Rd. MP084 97 -26 554 Flinn Ave. MP085 97 -26 SW corner of Charles St. & Sir George Ct. MP090 94 -20 Christian Barrett Dr. 56 ft. East of Peach Hill Rd. MP091 97 -20 Between Addresses 4188 & 4196 Trailcrest Dr. MP092 97 -20 13660 Donnybrook Ln. MP093 97 -18 13873 Christian Barrett Dr. MP094 97 -18 13678 Christian Barrett Dr. MP095 97 -18 Between Addresses 3954 & 3968 South Hampton Rd. MP096 94 -18 NW c/o Wintergreen Ln. & Hidden Pines Ct. MP097 94 -18 Pheasant Run St. 45 ft. North of Westport St. 0 0021 i B -5 MP098 03 -20 Between Lot #28 & #29 Shawnee St. MP099 00 -22 NW c/o of Science Dr. & Stagecoach Tr. MP100 00 -20 Science Dr. 40 ft. South of Peach Hill Rd. MP102 91 -24 Los Angeles Ave. 100 ft. West of Maureen Ln. MP103 97 -24 Science Dr. 532 ft. North of Los Angeles Ave. MP104 85 -20 10990 Citrus Dr. MP105 82 -18 10745 Citrus Dr. 000218 C -1 EXHIBIT C GRANTEE COMMITMENT TO PEG ACCESS FACILITIES AND EQUIPMENT 1. CABLE SERVICE TO PUBLIC BUILDINGS Grantee shall connect, at no installation charge, the buildings listed in Figure 1, to the closest node of the Cable System, under the following conditions: By not later than six (6) months after written request from Grantor to Grantee, Grantee shall provide and /or offer at least one (1) connection and Basic Cable Service (consisting of the Basic Service Tier and any Cable Programming Services Tier), at no installation or monthly service charge (for a standard installation), to all of the buildings listed in Figure 1 of this Exhibit. Public buildings listed in Figure 1 of this Exhibit that have Basic Cable Service as of the Effective Date of this Agreement shall continue to receive Basic Cable Service. As used above, an "offer" of the connection and Basic Cable Service will have been deemed to have been made if, written documentation of such an offer is provided to Grantor by Grantee, and additional written evidence from an authorized representative of the public building at issue indicates the desire on the part of the authorized representative to either decline or defer the provision of the free connection and service. 2. TWO -WAY VIDEO CAPACITY (a) No later than six (6) months after the Effective Date of this Agreement, Grantee shall provide two -way connectivity the following locations: (1) City Hall, (current and future location) (2) Police Service Center (future location) (3) Arroyo Vista Recreation Center 1 (),00219 C -2 (4) A future location within the City of Moorpark to be designated by Grantor. The purpose of these two -way communications links is to permit live cablecasting of video and audio programming from those locations on Grantee's Cable System. Grantee shall not charge Grantor for any of the costs associated with providing this connectivity. Said connectivity shall be provided by Grantee for the life of this Agreement. (b) If any of the locations are connected to the I -Net described in Exhibit D of this Agreement, the I -Net connection will satisfy the two -way connectivity requirement of (a) above. If any of the locations in (a) above are not connected to the I -Net, Grantee shall install a fiber optic link between that location and the Cable System headend. (c) No later than sixty days after a written request by Grantor to Grantee, Grantee shall provide a suitable video modulator at each of the locations identified in (a) above, at no charge. 3. INTERNET ACCESS SERVICE TO PUBLIC BUILDINGS (a) By not later than six (6) months after the Effective Date of this Agreement, Grantee shall provide and /or offer activated interactive data communications capability to the current and future libraries and public schools (Kindergarten through twelfth grade or "K -12 "), listed in Figure 1 B consistent with the Cable System delivery of "cable modem" Internet access services. As used in this Section, the word "offer" shall have the same meaning as indicated in Section 1 of this Exhibit C. There shall be no installation charge for buildings and locations within the standard installation distance of one hundred twenty -five (125) feet from Grantee's contiguous cable plant. For buildings and locations beyond the 2 000220 C -3 standard installation distance, upon Grantor request, Grantee shall provide a written cost quotation detailing the charges for the distance in excess of the standard installation. Grantor's written agreement to pay for the additional costs shall be required prior to Grantee becoming obligated to extend service to the designated location. (b) Grantee shall make interactive high -speed cable modem data service available to the buildings listed in Figure 1, under the following conditions: (1) There shall be no charge for one (1) installation, one (1) lowest cost residential type cable modem service and one (1) cable modem to current and future libraries and public schools (Kindergarten through twelfth grade or "K- 12 ") listed in Figure 1(B). (2) For connection of high speed cable modem service to the buildings listed in Figure 1(B), the service shall have the capability to accommodate up to four (4) computers at each location. (3) At such time that Grantee, or Grantee's Cable System, offers cable modem or equivalent service to commercial (non - residential) users, Grantee shall provide a discount of at least fifteen percent (15 %) from its rate for the desired services to the buildings listed in Figure 1(A). The same discounted rate shall apply to additional outlets provided to the buildings listed in Figure 1(B). The discount for additional outlets for the buildings shall be in addition to the free outlet described in (b)(1) of this Section. (c) A point of demarcation shall be established within each building and location in Figure 1. Grantee shall be responsible for acquiring, installing, 3 000221- C -4 operating and maintaining all networking equipment and facilities on the network side of the demarcation point. With the exception of the cable modems provided by Grantee pursuant to (b) of this Section, each PEG Access user shall be responsible for acquiring, installing, operating and maintaining all equipment on its side of the point of demarcation necessary to interface with and utilize Grantee's network. It is the intent of this provision that the Grantee's side of the point of demarcation shall include all necessary interface equipment necessary to insert the signal provided by the PEG Access user onto Grantee's network. Such interface equipment may include, but is not necessarily limited to, RF modulators and opto - electric equipment. 4. PUBLIC, EDUCATIONAL AND GOVERNMENTAL (PEG) ACCESS CHANNELS (a) Upon the Effective Date of this Agreement, Grantee shall continue to make three (3) downstream analog Channels available exclusively for Public, Educational and Governmental (PEG) Access use. These Channels shall be dedicated for the term of the Franchise renewal. To the extent that channel location is within the Grantee's control, the Government Access Channel shall remain on Channel 10 of the Cable System for the life of the Agreement and the Public Access Channel shall continue to be located on Channel 25 of the Cable System for the life of this Agreement in accordance with the provisions of Section 8 of this Exhibit C. (b) No earlier than three (3) years after the Effective Date of this Agreement, Grantor may request and Grantee shall provide up to a total of one (1) additional analog Channel, for a total of four (4) analog Channels, for PEG Access use. Any request from Grantor shall be accompanied by a good faith representation that the existing Channel capacity provided for Access use is insufficient to meet community needs. Said request shall be made in writing not 4 000222 C -5 less than one hundred twenty (120) days prior to the date Grantee shall be required to provide such additional Channel(s). This written notice shall include information verifying that the criteria specified in (c) below have been met. (c) Any request from Grantor shall be accompanied by a good faith representation that the existing Channel capacity provided for PEG Access use is insufficient to meet community needs. Prior to Grantor providing said request to Grantee, Grantor shall hold a hearing at a meeting of the City Council. Grantee will be provided notice of the meeting and the opportunity to comment and provide information with regard to any proposed Grantor request for additional EG Access Channel capacity. (d) Grantor and Grantee acknowledge that Grantee may in the future use video compression technology in order to transmit PEG Access video programming in a digital format to Subscribers. Until such time as Grantee has converted all analog video programming to digital, consistent with applicable law, Grantee shall make PEG Access Channels available to both its analog and digital Subscribers. When Grantee has converted all video programming, both commercial and non - commercial, from analog to digital, then the parties will meet and confer concerning additional bandwidth that may be allocated for PEG Access use, taking into consideration the prior use of PEG Access Channel capacity, both analog and digital, and the extent of any excess demand that may then exist. The provision of any additional digital Channels must be mutually agreed to by both Grantor and Grantee. If Grantor and Grantee are unable to agree on the additional bandwidth to be allocated for PEG Access use, Grantor shall provide Grantee not fewer than three (3) digital Channels for each analog Channel allocated for PEG Access pursuant to this Agreement. 5 (i 00223 C -6 (e) All Channels designated for PEG Access use shall be carried on the lowest tier of Grantee's Cable Service, unless otherwise mutually agreed to by Grantor and Grantee. 5. PROVISION OF PEG ACCESS EQUIPMENT AND FACILITIES INCLUDING I -NET (a) The PEG Access grants described in this Section shall be utilized by Grantor, or Grantor's designee, for PEG Access equipment and facilities, which are defined to include, but not be limited to I -Net data communications terminal and interface equipment as well as video equipment used in conjunction with the Cable System facilities. (b) Commencing on the Effective Date of the Franchise, Grantee shall provide a capital grant of Forty Cents ($0.40) per Subscriber per month to Grantor to support PEG Access including I -Net services. This grant shall be continued throughout the duration of the Franchise, unless otherwise directed by the Grantor. The grant funds may be used for equipment and facilities for both one -way video PEG Access services and two -way I -Net services, at Grantor's sole discretion. The grant funds shall be paid to the Grantor on a quarterly basis, concurrent with the Franchise Fee payment. This grant shall be in addition to the grants of 5(c) and 5(d) below. (c) Upon the Effective Date of the Franchise, Grantee shall provide to Grantor a capital grant of One Hundred Seventy -Five Thousand Dollars ($175,000) for capital expenditures associated with PEG Access. This grant shall be in addition to the grants of 5(b) and 5(d) herein. (d) No earlier than five (5) years after the Effective Date of this Agreement and within ninety (90) days of a written Grantor request, Grantee shall provide to Grantor an additional capital grant of One Hundred Fifty 6 (pO0224 C -7 Thousand Dollars ($150,000) for capital expenditures associated with PEG Access. This grant shall be in addition to the grants of 5(b) and 5(c) above. (e) Grantor shall not oppose the inclusion on Subscribers' bills of the Access grants provided in 5(a), (b) and (c) above, so long as said inclusion is done in a manner consistent with the provisions of Federal and State law and regulation. (e) Any recovery by Grantee of the capital grants of 5(c) and 5(d) above shall be limited to not more than the total amount of the grants, and shall be amortized over the entire remaining Franchise term. No provision shall be made for interest or present value of the grants. As required by Section 2.2(f) of this Agreement, Grantee's quarterly payment of the 5(b) grant shall include a written statement to Grantor detailing the amount of the 5(b), 5(c) and 5(d) grants recovered during the reporting period and the cumulative recovery of the 5(c) and 5(d) grants from the Effective Date of this Agreement through the reporting quarter of the statement. 6. PEG ACCESS OPERATIONS Grantor may negotiate agreements with neighboring jurisdictions served by the same Cable System, educational institutions, other or others to share operating expenses as appropriate. Grantor and Grantee may negotiate an agreement for management of PEG Access facilities, if so desired by the parties. 7. TITLE TO PEG EQUIPMENT Grantor shall retain title to all PEG Access equipment provided with funding made available in accordance with paragraph 5 above. 8. RELOCATION OF PEG CHANNELS If, for any reason, any PEG Access Channel is relocated to a different Channel number, Grantee shall reimburse Grantor for all reasonable out -of- 7 000225 C -8 pocket Grantor costs necessarily incurred as a result of the relocation, up to a maximum of Five Thousand Dollars ($5,000) per change. Grantee shall provide Grantor and all Subscribers with at least thirty (30) days written notice of such relocation. 9. PROMOTION OF PEG ACCESS Grantee shall allow the Grantor to place bill stuff ers in Grantee's subscriber statements at a cost to the Grantor not to exceed Grantee's cost, no more than twice per year upon the written request of the Grantor and at such times that the placement of such materials would not affect Grantee's cost for the production and mailing of such statements. The Grantor agrees to pay Grantee in advance for the actual cost of such bill stuffers. Grantee shall also make available access information provided by Grantor in subscriber packets at the time of installation and at the counter in the Cable System's business office. Grantee shall also include a listing of the known programming to be cablecast on PEG Access Channels in any Grantee printed program guide for the Cable System, to the extent such information is provided in a timely and appropriate manner. 10. ACCESS TO FACILITIES Grantee shall continue to make available a video production studio in a location reasonably convenient to the City and its residents. Said facilities shall be made available to residents of the City without charge on a first -come, first - served, non - discriminatory basis. Production staff members shall conduct training programs to inform City residents about the availability and use of the facilities. If Grantee believes that the use of these facilities by Moorpark residents does not warrant their continued availability, Grantee may request that Grantor 8 000226 J'7 waive this obligation. Both the request by the Grantee and the approval by the Grantor shall be in writing. The City Manager shall be authorized to act on behalf of the Grantor on this matter. s 00022'0, C -10 FIGURE 1 LIST OF BUILDINGS TO BE CONNECTED (A) City and Public Buildings Facility Address Outletsn Activated Service as of Franchise Effective Date Yes No City Hall* 799 Moorpark Avenue future — 85 W. High St X future City Hall Annex 799 Moorpark Avenue X Community Center /Senior Center 799 Moorpark Avenue X Arroyo Vista Recreation Center* 4550 Tierra Re'ada Road X Building & Safety Office current 18 High Street X Parks & Public Works Yard current 675 Moorpark Avenue X Parks & Public Works Yard (future) Fitch Avenue (vacant lot adjacent to Caltrans Maintenance Station X Police Service Center current 26 Flory Avenue X Police Service Center (future)* 500 Spring Road (northeast corner of Flinn Avenue and Spring Road X Public Works Office current 798 Moorpark Avenue X Vector /Animal Control 782 Moorpark Avenue X Human Services Center Complex 612 A -C Spring Road (immediately north of Police Service Center X * Per Exhibit C, Section 2, these locations to be provided ability for live cablecasting. 0 Outlets indicate the number of outlets in place as of the Effective Date of this Agreement. These outlets shall be maintained at no charge unless otherwise directed by the Grantor. Locations with no outlets in place as of the Effective Date of this Agreement shall be provided with no less than one (1) outlet in accordance with the provisions of Section 6.1 and Exhibit C.1. d.. tQ rx 10 C -11 (B) Public Schools and Libraries Facility Address OutletsL Activated Service as of Franchise Effective Date Yes No MUSD MUSD Offices 5297 Maureen Lane X Arroyo West School 4112 Count hill Road 1 X Campus Canyon School 15300 Monroe Avenue 2 X Flory School 240 Flory Avenue 52 X Mountain Meadows School 4200 Mountain Meadow Drive X Peach Hill School 13400 Christian Barrett Drive X Walnut Canyon School 280 Casey Road 60 X Chaparral School 280 Poindexter Avenue 30 X Mesa Verde Middle School 14000 Peach Hill Road 36 X Community High School 5700 Condor Drive 4 X Moorpark High School 4500 Tierra Re'ada Road 1 X Moorpark College Administration Building 7075 Campus Road X Campus Center 7075 Campus Road X Communications Building 7075 Campus Road 4 X Exotic Animal Training & Management Center 7075 Campus Road X Gymnasium 7075 Campus Road X Performing Arts Center 7075 Campus Road X Libraries Moorpark Library 699 Moorpark Avenue 1 X Note: These Public Schools and Libraries are to receive cable modem service at no charge in accordance with the terms of this Agreement. n Outlets indicate the number of outlets in place as of the Effective Date of this Agreement. These outlets shall be maintained at no charge unless otherwise directed by the Grantor or an authorized representative of the facility. Locations with no outlets in place as of the Effective Date of this Agreement shall be provided with no less than one (1) outlet in accordance with the provisions of Section 6.1 and Exhibit CA 11 CD EXHIBIT D INSTITUTIONAL NETWORK EXHIBIT D: INSTITUTIONAL NETWORK Article 1 Retention of Grantee 1.1 I -Net Construction. The Grantor hereby authorizes Grantee to construct the I -Net, in accordance with the provisions contained in this Exhibit. Grantee hereby accepts such authorization with full power, authority and responsibility to construct the I -Net in accordance with the terms of this Exhibit, subject to the limitations set forth in this Exhibit. 1.2 Standards of Performance. Grantee shall construct the I -Net in a workmanlike manner and in accordance with applicable law, regulation and standards contained in this Exhibit. Grantee shall devote such time as shall be necessary for proper and efficient construction of the I -Net, and shall incorporate the same transmission standards and quality of fiber as utilized in Grantee's residential fiber network located in the City. Grantee shall employ adequately trained employees to construct the I -Net and shall at all times adequately train, equip, supervise and instruct such employees, agents and subcontractors to ensure that the construction of the I -Net meets the standards set forth in this Exhibit. 1.3 Use of Affiliates. Grantee may utilize the services of its affiliates and the employees of such affiliates in constructing the I -Net. 1.4 Operational and Management Responsibilities of the Grantor. Upon the Acceptance Date as defined in Article 6.2 hereof, the Grantor shall obtain and maintain operational and management control of the [-Net. In such capacity, the Grantor's responsibilities include, without limitation: (a) the supervision of the use of all facilities and equipment, with the exception of equipment retained and owned by Grantee; (b) the oversight of the management of day -to -day operations of the I -Net; 000230 D -2 (c) the determination and implementation of all policy decisions for the I -Net, including the preparation and filing of material with relevant federal or state agencies; (d) the supervision of the employment of I -Net personnel (excluding Grantee employees involved in the construction and maintenance of the I -Net and the operation and maintenance of equipment retained and owned by Grantee); (e) payment of all wages, salaries, benefits and other costs of Grantor employees, including those who assist Grantee in the construction of the I -Net, except as provided in this Exhibit; (f) the payment of all financial obligations and expenses arising from the operation and management of the I -Net; (g) the purchasing, installation and maintenance of any electronic equipment, switches, servers, routers and end user terminal equipment utilized, or to be utilized in the I -Net. (h) have full and complete control, responsibility and liability for the signals and content of any signals distributed over the fiber by the Grantor or for its benefit, (i) have full and complete control, responsibility and liability for the purchase, installation, construction and maintenance of the terminals and peripheral equipment connected to the fiber utilized by the Grantor, provided that such equipment shall not be located in public rights -of -way without the Grantor having obtained all necessary rights to utilize such rights -of -way Q) provide all commercial or other power supplies for the operation of the Network (or, if agreed by Grantee and the Grantor, the Grantor shall instead bear its allocated cost share of Grantee's costs for power supplies), terminals and peripheral equipment or facilities used with or connected to the System and located on the Grantor's, premises; and (k) have full and complete control, responsibility and liability for maintaining any operating authority from any Federal, State or local governmental body or agency that relates to the activities of the Grantor under this Exhibit, including the Grantor's utilization of fiber. 1.5 Licenses, Permits, Authorizations. All permits, franchises, licenses, consents, authorizations, easements and rights -of -way from governmental 000231- D -3 agencies or third parties, including telecommunication franchises and pole and conduit agreements, that are necessary for the construction of the I -Net, shall be obtained by Grantee. Grantee shall not be required to commence or complete construction of the I -Net until it has obtained all such licenses, permits, authorizations and pole and conduit agreements. The Grantor shall use its best efforts to assist, and cooperate with, Grantee in acquiring all necessary licenses, permits, authorizations and pole and conduit agreements. 1.6 Responsibility for Certain Fees and Costs. The Grantor agrees to pay any additional fees that are assessed to Grantee by the owner of the poles, trenches or conduit used in connection with the fiber provided by Grantee under this Exhibit to the extent such fees are in excess of the amounts that Grantee would otherwise be required to pay in the absence of this Exhibit D. Any such increased fees shall be payable as an adjustment to the Lease Payment pursuant to Article 4 herein. The Grantor agrees to pay any State or Federal regulatory fee assessed against Grantee by any State or Federal governmental body or regulatory agency by virtue of the I -Net or the communications provided over the I -Net. The Grantor shall have the right to contest the amount and /or validity of any fee or assessment that it has agreed to pay in this paragraph by any and all applicable legal proceedings. The Lease Payment pursuant to Article 4 herein may be adjusted to cover any such fees or assessments which are the Grantor's responsibility under this paragraph. 1.7 Use. The I -Net can be used for voice, video, and data communications. The Grantor shall not furnish any services over the fiber commercially, or engage in any way in the business of producing, packaging, distributing, marketing, or otherwise providing, offering, promoting or branding such voice, video, and data communication signals. The Grantor shall not use the fiber in violation of this Exhibit D, any law, rule, regulation or order of any governmental authority having jurisdiction, or any franchise, license, agreement or certificate relating to the System or Grantee Franchise, unless the validity thereof is being contested in good faith and by appropriate proceedings (but only so long as such proceedings and the Grantor's use of the fiber do not, in Grantee's reasonable opinion, involve any risk of the sale, forfeiture, or loss of the System, any authorizations, or any part thereof or any interest therein). The Grantor shall not do or permit anything to be done with respect to the fiber that would invalidate or conflict with any insurance policies maintained by Grantee or the Grantor covering the fiber or the networker or the I- Net. 0002 2. D -4 Article 2 Construction Responsibilities of Grantee 2.1 Specifications. Grantee shall complete the construction of the I -Net in accordance with the Standards as defined in Section 6.1 hereof and using the technology, architecture, equipment and materials necessary to complete construction for site to site connectivity. The Grantor shall identify on Schedule 1 to this Exhibit D the locations to which fiber is to be constructed and the number of fibers to each location. Site locations and fiber counts specified by the Grantor on Schedule 1 may be supplemented or modified by the Grantor during the course of construction of the I -Net pursuant to a written instrument agreed to and executed by the parties setting forth the terms and conditions for completing such design alteration. In no event shall Grantee be subject to the time limitation described in Article 5 herein with respect to completion of any modified or altered construction requirement or specification; provided that such construction shall be completed in a timely fashion considering the extent of the modification or alteration and the amount of work involved. 2.2 Construction Services. Consistent with Article Section 2.1 above and subject to the other provisions of this Exhibit D, Grantee shall construct, or enter into contracts with others to construct, the I -Net and shall perform or cause to be performed such duties, including arranging for the hiring and supervision of personnel as shall be necessary or appropriate for the construction of the I -Net in accordance with this Article 2. 2.3 I -Net Status Report. Grantee agrees to give the Grantor monthly reports regarding the status of construction of the I -Net. 2.4 Connection to Residential Cable System. Grantee shall provide a connection or interconnection of the I -Net with the cable system constructed and operated by Grantee under the terms of the Franchise Agreement. It is the Grantor's and Grantee's mutual intent that this connection enables the Grantor to provide video and audio programming from the I -Net to Subscribers of the Cable System. The Grantor shall be responsible for all equipment necessary to originate and distribute such programming on the I -Net. The Grantee shall provide and shall be responsible for all equipment necessary to receive the signal from the I -Net and distribute the signal in its entirety onto Grantee's Cable System. The audio and video signal provided by the Grantor to the Grantee by said interconnection shall be in a standard format usable by, and reasonably acceptable to the Grantee. 000233 D -5 Article 3 Maintenance Standards 3.1 Maintenance Standards. Grantee shall perform all routine maintenance and repair functions and emergency maintenance and repair functions, including one -call responses, cable locate services and maintenance splicing (collectively, "Maintenance "), for the I -Net. The standards for Maintenance of the I -Net (the "Maintenance Standards ") shall be as detailed in Schedule 2. 3.2 Maintenance. Maintenance shall be performed by qualified employees, agents or contractors of Grantee in a good and workmanlike manner. In the event Grantee fails to perform any Maintenance in accordance with Article 3 after having received thirty (30) days written notice from the Grantor of such failure to perform, the Grantor shall have the right, but not the obligation, to undertake such Maintenance of the I -Net, at Grantee's cost and expense, using qualified contractors. In the event that the Grantor uses a third party contractor (i.e., not Grantee) to perform I -Net Maintenance, the Grantor shall require such contractor to coordinate with Grantee for access to the I -Net facilities, materials, and equipment co- located with Grantee's facilities, including providing Grantee prior written notice of any Maintenance to be performed and ensuring the on -site presence, at such contractor's sole expense, of at least one of Grantee's employees during the performance of such Maintenance. The Grantor shall not have any maintenance cost obligations beyond what is included as part of the Lease Payment specified in Article 4.1 of this Exhibit. 3.3 Response Time. Grantee shall respond to technical problems on the I -Net within four (4) hours after the problem becomes known; provided, however, that Grantee shall respond immediately to technical problems involving an emergency. 3.4 Repair Time. Grantee shall use its best efforts to complete repairs within three (3) days period after the problem becomes known. If by the nature of the problem, such repair cannot be completed within such three (3) day period, Grantee shall take reasonable steps to complete such repair and diligently continue such efforts until said repair is complete. 000234 W Article 4 Lease and Maintenance Fee 4.1 Lease and Maintenance Fee. The Grantor agrees to pay Grantee a quarterly lease and maintenance fee ( "Lease Payment ") for the I -Net in the amount of Six Thousand Nine Hundred Dollars ($6,900.00). The Lease Payment shall be due and payable within sixty (60) days following the quarter for which payment is due. The Lease Payment shall commence upon acceptance of the I -Net by the Grantor pursuant to Article 6.3 4.2 Additional Lease and Maintenance Fee. The Grantor, in its sole discretion, may request Grantee to extend the I -Net to include the buildings in the Moorpark School District and the Moorpark Community College and listed in Schedule 3. Provided the City makes its request in writing to Grantee within thirty -six (36) months of the Effective Date of the Franchise Agreement, Grantee agrees that the incremental increase in the quarterly Lease and Maintenance Fee described in Article 4.1 of this Exhibit will not exceed Three Thousand Seven Hundred Dollars ($3,700.00) for the Moorpark School District and Two Thousand Dollars ($2,000.00) for Moorpark Community College. Article 5 Term and Termination 5.1 The I -Net shall be constructed and offered to the City for acceptance testing pursuant to Article 6.2 hereof by December 31, 2004 (the 1- Net Completion Date "). The term of this I -Net lease (the "Lease ") shall be coterminous with the Franchise Agreement. Renewal of the Lease shall be negotiated in conjunction with the renewal of the Franchise Agreement. Any extension of the Franchise Agreement that is mutually agreed upon in writing and signed by Grantee and the Grantor shall include the Lease of this Exhibit, unless otherwise specifically agreed to by Grantee and Grantor. 000235 D -7 5.2 Additional Termination Rights. If any governmental agency or third party institutes proceedings to impose any public utility or common carrier status or obligations on Grantee or the use of Grantee's capacity or facilities as a result of its performance of this Exhibit D, or if any action is brought by any third party challenging the continued validity or seeking to adversely modify, suspend or revoke Grantee's operating authority for all or part of its services or System as a result of its or the Grantor's performance of this Exhibit D, or if, as a result of any change in applicable law or regulation (or in judicial or other official interpretations thereof), Grantee reasonably deems that such a proceeding is likely and has a significant possibility of success on the merits, Grantee may, without further liability to the Grantor, upon one hundred eighty (180) days written notice, terminate this Lease as a whole without cause; provided however that Grantee shall not terminate this Lease or any fiber provided by it during the pendency of such proceedings or actions if the Grantor agrees to indemnify and hold harmless Grantee in (pursuant to an indemnification agreement in form and substance reasonably satisfactory to Grantee) against all liability, claims, fines or damages (including reasonable attorneys' fees) incurred by Grantee as a result of the Grantor's continued operations and use of the I -Net unless (a) Grantee is required to do so by a valid and final order of a court of competent jurisdiction, or (b) in Grantee's opinion, continued performance or activity by the Grantor under the terms of this Exhibit would have a present or future material adverse effect on the local cable or other operations of Grantee, its financial condition or operating condition or is reasonably likely to result in the imposition of public utility or common carrier status on Grantee or an adverse modification, suspension or revocation of such Grantee's operating authority for its services or its Cable System or the forfeiture of any portion of the Cable System. Grantee shall control the defense, prosecution and settlement of such claim or demand but shall allow the Grantor the opportunity to participate in such defense through counsel of Grantor's own choosing, which participation will be at the sole expense of the Grantor. If the proceedings or actions would in any event affect only a portion of the I -Net, Grantee will instead terminate only the lease of the I- Net that is affected thereby. Upon the effective date of such a termination, the Grantor shall terminate Grantor's use of the I -Net, remove Grantor's equipment, and cease operations over such portion of the I -Net.. Article 6 Acceptance of the I -Net 6.1 I -Net Design; Construction, Performance and Maintenance Standards. Grantee shall construct the I -Net in accordance with the design standards of Schedule 1 and the Construction and Performance Standards of Schedule 2 (collectively, the "Standards "). Any mutually approved (in writing) 00021136. ? W, change, alteration or modification of such Standards shall not relieve the Grantor of its payment obligations described in Article 4.1. 6.2 Acceptance Testing. The results of the following acceptance testing procedures shall be the sole basis upon which the Grantor's acceptance of the I -Net is conditioned, and the date of such acceptance shall mark the final completion of the I -Net (the "Acceptance Date ") and trigger provision regarding payment of the Lease and Maintenance Fee in Article 4.1 hereof. (a) Physical Inspection. The physical configuration of the I -Net will be inspected to monitor conformance with the Standards and applicable law. Inspections of the cable runs and components will be made during the construction process to maintain the integrity of the design. (b) Technical Performance Test. Upon the [-Net Completion Date as defined in Article 5 hereof, Grantee shall conduct a technical performance test in accordance with testing procedures mutually agreeable to Grantee and the Grantor, in Grantor's presence, and at a mutually acceptable time, to demonstrate the continuity on the optical route from the point of origin to termination and compliance with splice and termination loss specifications acceptable to the Grantor and compliance with the Standards. The results of such test(s) shall be submitted to the Grantor. 6.3 Acceptance; Release. Within thirty (30) days of completion of the testing described in Articles 6.2(a) and (b), the Grantor shall notify Grantee whether or not it accepts the [-Net. If the Grantor does not provide such notification within thirty (30) days, the I -Net shall be deemed accepted by the Grantor and the date of expiration of such thirty (30) day period shall be deemed to be the Acceptance Date. If the Grantor does not accept the I -Net, the Grantor shall provide a reasonably detailed written explanation of the reasons it refused such acceptance. Grantee shall correct any actual deficiencies in the construction, and retest the I -Net or relevant portion thereof. Acceptance of the I- Net shall not be unreasonably withheld or delayed. So long as Grantee is diligently working to correct any deficiencies and possesses a reasonable and good faith belief that it constructed and offered to the Grantor a completed I -Net in substantial compliance with the Standards as of the I -Net Completion Date, the failure of the Grantor to accept the I -Net shall not be deemed a failure by Grantee to meet its obligations under this Exhibit. Except as described in Article 8.1 of this Exhibit, as of the Acceptance Date, Grantee and its affiliates shall be automatically released from any liability resulting from or arising in connection with the I -Net. _,1 0 0 2 3 A M• Article 7 I -Net Ownership 7.1 Execution of Additional Documents. Grantee shall retain ownership of the I -Net during the term of the Franchise Agreement. 7.2 Termination, Expiration or Non - renewal of the Franchise Agreement. Ownership of the I -Net by Grantee shall survive any termination, expiration or non - renewal of the Franchise Agreement. Notwithstanding anything to the contrary, from and after the date of any termination, expiration or non - renewal of the Franchise Agreement, Grantee shall have no further obligation to maintain or repair the I -Net pursuant to Article 3 hereof. 7.3 Continued Operations. Notwithstanding anything to the contrary, if the Franchise Agreement is terminated, expires or is not renewed and the Grantor desires to continue to use and maintain the [-Net, then the Grantor shall reimburse Grantee for all reasonable costs and expenses associated with disassembling Grantee's System from the I -Net. Such reimbursement shall be payable within thirty (30) days after the Grantor receives documentation from Grantee reasonably evidencing such costs and expenses. 7.4 Liens and Encumbrances. The Grantor shall not, either directly or indirectly, create, impose or suffer to be imposed any lien on (a) any property interest of Grantee, (b) the rights or title relating thereto, or any interest therein, or (c) this Lease. The Grantor will promptly, at its own expense, take such action as may be necessary to duly discharge any such lien. Article 8 Warranty; Indemnification 8.1 Warranty. If, at any time, any work performed by Grantee on the I- Net is found, by independent evaluation, to be defective or not in material compliance with this Exhibit, then Grantee or its agent, at their expense, shall correct such defect or non - compliance in a timely fashion upon receipt of written notice from the Grantor describing the defect or non - compliance with reasonable accuracy and detail. Grantee shall not be obligated to correct the defect or non- compliance pursuant to this Article 8.1 until the Grantor demonstrates to Grantee that such defect or non - compliance is not the result of failures outside the reasonable control of Grantee. NOTWITHSTANDING ANYTHING TO THE CONTRARY, GRANTEE MAKES NO GENERAL SPECIAL, EXPRESS OR IMPLIED WARRANTIES AS TO THE FITNESS OF THE FACILITIES AND EQUIPMENT THAT IT IS OBLIGATED TO PROVIDE UNDER THIS EXHIBIT FOR ANY PARTICULAR NETWORK APPLICATION OR USE. ANY AND ALL SUCH WARRANTIES ARE HEREBY DISCLAIMED. 000238 D -10 8.2 Indemnification by Grantee. Grantee shall not, and does not, indemnify the Grantor for acts of the Grantor, including acts of negligence or willful misconduct on the part of the Grantor or its officials, boards, commission, agents or employees, relating to the I -Net. Grantee shall indemnify and hold harmless the Grantor, its officers, employees or agents from and against any and all claims, demands, costs, damages, losses, liabilities, expenses of any nature (including reasonable attorneys, accounts, and experts fees and disbursements), judgments, fines, settlements and other amounts (collectively, "Damages ") arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative (collectively, "Claims ") relating to or arising out of: (a) the construction or maintenance by Grantee of the I -Net, except to the extent such Damages are caused by the Grantor or its agents; (b) any breach on the part of Grantee of any obligation or covenant under this Exhibit D; and (c) any Claim of any third party resulting from the negligence or willful misconduct of Grantee. 8.3 Indemnification by Grantor. The Grantor will indemnify and hold harmless Grantee, its parent, subsidiaries, affiliates, and all officers, directors, stockholders, employees, partners and agents of Grantee, its parent, subsidiaries and affiliates from any and against any and all claims, demands, costs, damages, losses, liabilities, expenses of any nature (including reasonable attorneys', accountants', and experts' fees and disbursements), judgments, fines, settlements and other amounts (collectively, "Damages ") arising from any and all claims demands, actions, suits or proceedings, civil, criminal, administrative or investigative (collectively, "Claims ") relating to or arising out of: (a) The operation and use of the I -Net or the conduct or management of the Grantor with regard to the I -Net or the connections thereto or the I -Net thereof, except to the extent such Damages are caused or contributed to by Grantee or its agents; (b) any breach by the Grantor of any obligation or covenants under this Exhibit D; (c) any Claim of any third party resulting from the gross negligence or willful misconduct of the Grantor. 8.4 Reservation of Indemnity Rights. Nothing in this Exhibit shall constitute a waiver, release, compromise, or discharge of any legal or equitable rights or claims for indemnity of any party against the other party. All rights and x;0023`3" D -11 claims for legal and equitable indemnity are hereby expressly reserved by all parties. 8.5 Third Party Beneficiaries. Nothing set forth in this Exhibit shall, or shall be deemed to, grant to any other person any interest (whether as a third party beneficiary or otherwise) herein. 8.6 Disclaimer of Liability. In relation to any claim pursuant to Section 8.1, but not Section 8.2, in no event shall Grantee be liable to the Grantor, to any of Grantor's agents, representatives or employees, or to any user of the I -Net, for special, consequential, exemplary, or punitive costs, liabilities or damages, whether foreseeable or not, arising out of, or in connection with, Grantee's performance or non - performance of its obligations under this Exhibit, including, without limitation, any failure with respect to any service, information, data, video, voice or other transmission on the I -Net. Grantee shall under no circumstances be held responsible for any transmissions over the I -Net. 8.7 Good Faith Neclotiation Regarding Indemnification Obligations. Subject to Article 9.1, the Grantor represents and covenants that it will utilize the I -Net solely for educational and governmental access programming and other non - commercial, educational and governmental uses. Furthermore, the Grantor represents and covenants that it will not utilize the I -Net, or any portion thereof, for the provision of any form of (i) emergency service to third parties, (ii) essential service to third parties, or (iii) service to any third party or the public in general of significant economic value to the Grantor except, with respect to subsection (iii) hereof, in the course of delivering governmental services permitted under Article 9.1 hereof. If, however, the Grantor at any time intends to utilize the I -Net, subject to the provisions of Article 9.1 hereof, for the provision of any other types of services ( "Additional Services "), then the Grantor shall provide written notice to Grantee of its intent to provide such Additional Services (the "Additional Services Notice "). Upon Grantee's receipt of the Additional Services Notice, the parties shall meet and confer in good faith to determine whether utilization of the I -Net for the purposes described in the Additional Services Notice impose, or could reasonably be expected to impose, legal liability upon Grantee for acts and omissions of parties other than Grantee or for events outside of the reasonable control of Grantee. To the extent that the Grantor's proposed use of the I -Net, as described in the Additional Services Notice, materially increases Grantee's legal and /or financial risks, as determined in Grantee's reasonable discretion, the parties shall negotiate in good faith mutually acceptable indemnification, waiver, or other forms of agreements that reasonably mitigate Grantee's concerns (the "Indemnification "). Upon mutual acceptance of the Additional Indemnification, the Grantor may proceed with the utilization of the I -Net for the purposes described in the Additional Services Notice, and will not be considered in breach of the representations and warranties contained in this Article 8.7 with respect to its use of the I -Net for such approved purposes. In no event, 000240 D -12 however, shall the Grantor utilize the I -Net for the delivery of Additional Services, until Grantee is provided the Indemnification provided above. Article 9 Non - Compete; Conflicts of Interest 9.1 Non - Compete. Notwithstanding anything to the contrary, at no time shall the Grantor, or any of its affiliates, agents, representatives, employees, successors or assigns, manage, own, control, operate, use or maintain, or permit any the Grantor or user of the I -Net to manage, control, operate, use or maintain, the I -Net in any manner that competes with the business of, or services provided by, Grantee or any of Grantee's affiliates. Moreover, at no time shall the Grantor, or any of its affiliates, agents, representatives, employees, successors or assigns, directly or indirectly provide or transmit, or permit any the Grantor or user of the I -Net to provide or transmit, any video programming, entertainment, data or voice services by means of the I -Net, other than for purposes of educational and governmental programming and other non - commercial educational and governmental uses, which permitted uses include without limitation (i) one -way and /or interactive governmental administrative functions provided by the Grantor, including but not limited to the issuance of building and other similar types of permits and licenses; (ii) provision of information to the public; (iii) internal communications among governmental users; (iv) connection of the I -Net to external networks to facilitate the Grantor's use thereof; and (v) transmission of voice, video and data among governmental and educational users and to and /or from governmental users to non - governmental users outside the I -Net by way of connection to a switch or external network. 9.2 Conflicts of Interest. Grantee shall not be prohibited from or otherwise limited in employing, contracting with or otherwise dealing with any person or entity while carrying out its duties under this Exhibit, by reason of the fact that such person or entity is an affiliate of Grantee, or is an entity in which Grantee has an interest, whether such relationship, affiliation, or interest is direct or indirect. 00024'1 D -13 Article 10 Miscellaneous 10.1 Waiver. The waiver by the Grantor or Grantee of any breach of any term, covenant or condition contained in this Exhibit shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained Exhibit. No term, covenant or condition of this Exhibit shall be deemed to have been waived by the Grantor or Grantee unless such waiver is in writing and is signed by the party against whom such waiver is sought to be enforced. 10.2 Entire Understanding. This Exhibit sets forth the entire understanding between the Grantor and Grantee with respect to the subject matter hereof. This Exhibit may be altered only by an agreement in writing signed by the party or parties. 10.3 Condemnation and Casualty. (a) Condemnation. If all or any portion of the I -Net is taken for any public or quasi - public purpose by any lawful power or authority by the exercise of the right of condemnation or eminent domain, the Grantor shall be entitled to terminate the Lease of the [-Net hereunder. (b) Casualty. If all or any portion of the I -Net are made inoperable and beyond feasible repair due to a casualty or other force majeure event (as that term is defined herein), the Grantor shall be entitled to terminate this Lease with regard to the I -Net affected by such casualty or other event. In such event, both parties shall be entitled to seek to recover the economic value of their respective interests in the I -Net (i) under any insurance policy carried by either party or their affiliates or any third party, or (ii) in either joint or separate actions, from any third party which may be legally responsible for causing such casualty. The parties will equitably share any recoveries as their economic interests appear. 10.4 Binding Effect; Assignment. This Exhibit D shall inure to the benefit of and will be binding upon the parties and their respective legal representatives, successors and assigns. Neither the Grantor nor Grantee shall have the right to assign the I -Net to any other entity without the written consent of the other. Upon the transfer of any or all of either party's interest in the [-Net and the assumption by the transferee party of any or all, as the case may be, of the transferor party's obligations, the transferor party shall be released from any further obligation under the I -Net to the extent accruing or relating to the period commencing upon the effective time of such transfer and relating to the interest so transferred. 000242 D -14 10.5 Survival Upon Termination. Unless otherwise provided in this Exhibit, the provisions of Article 7 (I -Net Ownership) and Article 8 (Warranty; Indemnification) shall survive the termination of this Lease, and shall remain in full force and effect following expiration of this Lease. 10.6 Covenant Regarding Other Agreements. During the term of this Lease, neither party will be a party to any instrument or agreement that would materially impair either party's ability to perform its obligations of this Exhibit. 10.7 Independent Contractor. Nothing contained in this Exhibit shall be construed as creating a partnership, joint venture or similar arrangement of or between the Grantor and Grantee with regard to the I -Net, or as creating any other relationship between the parties other than that of an independent contractor. In fulfilling their obligations hereunder, the parties shall be independent contractors with respect to one another. 10.8 Franchise Agreement. A breach of any provision of this Exhibit shall be considered a breach of the Franchise Agreement. [The Remainder Of This Page Is Intentionally Left Blank] 000243 D -15 SCHEDULE 11 I -Net Connection Locations and Fiber Counts The Grantor operate and maintain a separate and distinct Institutional Network (the "I- Net "), consisting of a set of continuous and interconnected fiber links, comprised of no less than two (2) dark fiber strands, connecting one (1) hub in a modified star design, with two (2) dark fiber strands from designated sites to the nearest hub location, as designated by the Grantor below: I -Net Sites connected in a ring of two (2) dark fibers will be located at the following facilities: 1) City Hall Annex 2) Community Center /Active Adult Center 3) Arroyo Vista Recreation Center 4) Building & Safety Office 5) Parks & Public Works Yard (current) 6) Parks & Public Works Yard (future) 7) Police Service Center (current) 8) Police Service Center (future) 9) Human Services Center Complex 10) Public Works Office (current) 11) Vector Control Office (current) 12) Caltrans Maintenance Station Country Waterworks District No. 1 A map of the I -Net design is included with this schedule. 000244 D -16 SCHEDULE2 CONSTRUCTION, PERFORMANCE AND MAINTENANCE STANDARDS Installation Requirements at Hub and Service Locations: • All fibers at termination points will be labeled. • A fiber map of the I -Net will be provided identifying City's fibers by bundle and color. • Fibers will be terminated in computer room, phone room, or other location in each facility as reasonably agreeable to both parties. • Grantor will provide termination racks or wall termination enclosures as needed. • Grantee will splice dark fibers into supplied enclosures using connectors matching the enclosure, or if no enclosure connector, "SC" connectors will be used. • Construction sites shall conform to any and all building codes and state laws. • Construction sites shall be well marked and kept clear of any safety hazard. • City shall be responsible for providing grounding facilities if termination location is not within 10 feet of building common utility ground point. Testing: • Each dark fiber shall be tested using an OTDR, with result traces provided as documentation. Maximum Acceptance Link Loss for acceptance testing shall be the sum of the fiber loss plus the splice losses, calculated at .11 dB per 1000 feet @ 1350nm, .08 dB per 1000' @ 1550nm, and .06 dB per splice location. Maximum loss for any individual splice shall be .10 dB; maximum attenuation for fiber shall be .15 dB per 1000' at 1350nm, .11 dB per 1000' at 1550nm. 000245 D -17 Maintenance: It is understood that some aging of fiber and or splices may occur over time. After acceptance by the Grantor, the Grantee shall maintain the I -Net at or better than the Maximum Operating Link Loss, which shall be the sum of the fiber loss plus the splice losses, calculated at .15 dB per 1000 feet @ 1350nm, .11 dB per 1000' @ 1550nm, and .10 dB per splice 000246 SCHEDULE3 Pursuant to Article 4.2 herein, the Grantor may request Grantee to connect the following buildings to the I -Net. The following locations will have fibers provided in the ring from the nearest Hub to the take- off point on the ring nearest the proposed location: Facility Address MUSD MUSD Offices 5297 Maureen Lane Arroyo West School 4112 Count hill Road Campus Canyon School 15300 Monroe Avenue Flory School 240 Flory Avenue Mountain Meadows School 4200 Mountain Meadow Drive Peach Hill School 13400 Christian Barrett Drive Walnut Canyon School 280 Casey Road Chaparral School 280 Poindexter Avenue Mesa Verde Middle School 14000 Peach Hill Road Community High School 5700 Condor Drive Moorpark High School 4500 Tierra Re'ada Road Moorpark College Administration Building 7075 Campus Road Campus Center 7075 Campus Road Communications Building 7075 Campus Road Exotic Animal Training & Management Center 7075 Campus Road Gymnasium 7075 Campus Road Performing Arts Center 7075 Campus Road 000247