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HomeMy WebLinkAboutORD 134 1990 1121sff /ORD3816z (11- 08 -90 -8) ORDINANCE NO. 134 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MOORPARK GRANTING A FRANCHISE RENEWAL TO THE CHRONICLE PUBLISHING COMPANY, DOING BUSINESS AS VENTURA COUNTY CABLEVISION WHEREAS, The Chronicle Publishing Company, doing business as Ventura ,County Cablevision ( "VCC" or "Grantee ") has requested the renewal of its existing franchise; WHEREAS, the City finds that VCC has substantially complied with the material terms of its existing franchise and with applicable law; WHEREAS, the quality of VCC's service, including signal quality, response to consumer complaints and billing practices, has been reasonable in light of community needs; WHEREAS, VCC has the financial, legal and technical ability to provide the services, facilities and equipment as set forth in this ordinance granting a franchise renewal; and WHEREAS, the terms and conditions of this ordinance granting a franchise renewal are reasonable to meet the future cable- related needs and interests of the community, taking into account the cost of meeting such needs and interests; NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF MOORPARK DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council of the City of Moorpark grants a cable television franchise renewal pursuant to the following terms and conditions: 1. Grant of Franchise Renewal. This renewal of a nonexclusive Franchise for a cable television system (hereinafter the "Franchise ") is issued pursuant to the authority provided in Chapter 6 of Title 5 of the Moorpark Municipal Code (hereinafter, the "Chapter "). All of the provisions of said Chapter are incorporated herein by this reference, as if set forth in full. To the extent of any inconsistency between the provisions of the Chapter and those of this Franchise Ordinance, the provisions of this Franchise Ordinance shall prevail. -1- sff /ORD3816z (11- 08 -90 -8) Pursuant to the provisions of said Chapter, the City Council hereby renews the Franchise of The Chronicle Publishing Company, doing business as Ventura County Cablevision ( "VCC" or "Grantee ") to construct, operate and maintain a cable television system within the City of Moorpark subject to all of the terms and conditions of the Chapter, and this Ordinance (the "Franchise Ordinance ") and the Acceptance of the Franchise Ordinance ( "Acceptance "). The Chapter, Franchise Ordinance and Acceptance contain the entire terms and conditions of the Franchise and shall supercede all prior franchises granted to VCC on the effective date of the Acceptance, provided that VCC shall be subject to all general City ordinances and regulations now in effect or subsequently enacted, including those concerning encroachment permits, zoning and building. 2. Franchise Area. The Franchise Area for this Franchise shall be all property within the boundaries of the City of Moorpark as they exist on the effective date of the Franchise Ordinance, and as the boundaries may exist during the Franchise period, through annexation. 3. Term of Franchise. The term of this Franchise shall be for a period of ten (10) years, commencing on the effective date of the Franchise Ordinance, and subject to the termination provisions contained in the Franchise. 4. Franchise Fees. (a) Effective January 1, 1991, the franchise fee shall be five percent (50) of VCC's gross revenues, payable forty -five (45) days after the close of each quarter Of VCC's fiscal year. Prior to 1991, the franchise fee shall be three percent (30) of gross revenues. (b) Upon at least sixty (60) days notice, the City Council may raise or lower the amount of the franchise fee by resolution without further ordinance amendment of the Chapter or this Franchise Ordinance. Should the maximum franchise fee permitted by state and federal law increase beyond five percent (5 %), the City may increase the franchise fee to said maximum. The Grantee may designate that portion of a subscriber's bill attributable to the franchise fee as a separate item on subscribers' bills. (c) Should the City Council raise or lower the amount of the franchise fee, the effective date of such new franchise fee shall be the first day of the third calendar month following the effective date of the -2- sff /ORD3816z (11- 08 -90 -8) resolution establishing the new franchise fee. The Grantee shall reduce the charges applicable to such franchise fee on its subscriber statements as of such effective date, where the franchise fee is lowered, or shall be permitted to increase such charges as of such effective date, where the franchise fee is increased, in either case without action of the City Council, including without limitation increasing such service charges as are subject to the franchise fee by the amount of such increase or, should the Grantee separately itemize the amount of the franchise fee, by increasing the amount of such separate assessment to reflect the increase in the franchise fee authorized by the City Council. 5. Reimbursement of City Expenses. The Grantee shall, within thirty (30) days after receipt from the City of a written itemization, reimburse the City for its reasonable costs incurred during the franchise renewal process through the effective date of this Franchise Ordinance to the extent not recovered by prepaid application fees. 6. Acceptance of Franchise. Grantee shall file with the City Clerk its authorized written acceptance of this Franchise renewal and its agreement to be bound by and comply with all the requirements hereof within forty -five (45) days of the effective date of the Franchise Ordinance. Such acceptance shall be in form and substance satisfactory to the City Attorney and shall include evidence of compliance with the requirements of Section 10 below. 7. System Desi n. Performance Requirements. (a) System Configuration. The cable television system shall consist of a residential network. The residential network shall provide interactive communications capability in its initial configuration. For purposes of this Franchise Ordinance, "interactive communications capability" shall mean that, following completion of the system rebuild more particularly set forth in Section 7(b) below, the cable system has the capacity to provide two -way communications upon the addition of appropriate return modules, electronic equipment and other facilities. "Interactive communications capability" shall not mean that such two -way capacity is operational, except as otherwise specifically required by this Franchise Ordinance. -3- sff /ORD3816z (11- 08 -90 -8) (b) Channel Capacity. By no later than December 31, 1993, Grantee will rebuild the cable television system to deliver signals at frequencies up to 450 megahertz (450 MHz), with specific capacity as indicated below: Cable Signal Channel Network Direction Capacity Residential Outbound 60 six MHz channels Residential Inbound 4 six MHz channels Completion of the system rebuild shall be understood as a cable system having.the capacity to deliver the number of channels of video programming specified above with the addition of appropriate equipment and facilities at the system headend and /or hub sites (and, in the case of inbound channels, with the addition of return modules and other equipment and facilities), but shall not be understood to require that such number of channels be activated at the system headend, hub sites or otherwise or that such number or any number of channels be programmed. Grantee shall not be required to offer additional programming upon completion of the system rebuild. (c) Undergrounding. The procedure set forth at Section 5.06.516(2) of the Chapter for undergrounding or relocating taps and pedestals shall apply only with respect to new construction, and shall not apply with respect to existing taps and pedestals or any reconstruction of the cable system, nor shall such procedures apply to any portion of the cable system other than taps and their related pedestals, and shall specifically not apply to line extenders, amplifiers, power supplies and related active electronic equipment and components. (d) Emergency Alert Capability. By December 31, 1990, VCC shall provide an emergency audio override capability to permit City to interrupt and cablecast an audio message on all channels simultaneously in the event of disaster or public emergency. The emergency alert system shall be accessed only in the event of a local emergency as defined in Section 8558(c) of the California Government Code duly proclaimed in accordance with the provisions of Section 8630 of said Government Code. City shall use its best efforts to contact the VCC prior to accessing the emergency alert system. City shall maintain a current list, filed with the VCC, of those individuals authorized to access the emergency alert system. -4- sff /ORD3816z (11- 08 -90 -8) City acknowledges that the VCC's cable system services many communities utilizing an integrated technical configuration, not all of which will necessarily be affected by a local emergency affecting the City. In utilizing the emergency alert system, all of the VCC's subscribers will be capable of receiving the alert, including subscribers in other communities. City agrees to exercise care and diligence with respect to (i) those individuals authorized to access the emergency alert system and (ii) the circumstances in which the emergency alert system is actually used. City shall indemnify, defend and hold VCC, its affiliates and their respective officers, directors, employees and shareholders harmless from and against any and all liabilities, losses, damages, claims, actions, causes of action, costs and expenses (including reasonable attorneys' fees) arising from or in any manner related to the use of the emergency alert system by or on behalf of City. (e) Standby Power. VCC shall provide standby power generating capacity during utility power outages at its cable television system control center and at all hubs. By December 31, 1993, VCC shall maintain standby power system supplies throughout the distribution networks. (f) Design Standards. Upon completion of the rebuild of the cable television system pursuant to Section 7(b), the system shall be capable of carrying sixty (60) -six (6) megahertz (MHz) Class I Television Channels and the full FM broadcast band. Once rebuilt, the system shall comply with the following provisions: (2) The characteristics set forth under "Design Objectives" are per - station specifications for trunks, bridgers and line extenders, respectively. Performance Performance Design Design Objectives Objectives Example Carrier to Noise 42 dB 9.5/9.5/10 44.26 dB Carrier to Second Order 55 dB 87/72/70 62.40 dB Carrier to Cross - Modulation 52 dB 88/70/70 56.90 dB Carrier to Composite Beat 55 dB 87/67/70 55.61 dB Hum 3% .0562 N/A (1) All performance and design objectives are subscriber terminal minimums. (2) The characteristics set forth under "Design Objectives" are per - station specifications for trunks, bridgers and line extenders, respectively. Performance sff /ORD3816z (11- 08 -90 -8) characteristics at the terminus of the cable system will vary dependent upon cascade lengths and temperature fluctuations. (3) The characteristics set forth under "Design Example" are based upon Magnavox specifications for a cascade of 20 trunk amplifiers, one bridger and two line extenders measured at 20 degrees Celsius with terminated input. The characteristics set forth in "Design Objectives" are to be applied across actual cascade length, component composition and ambient temperature to produce terminal characteristics based upon the per- station specifications. (g) Applicable Technical Standards. (1) The cable system as rebuilt by VCC in accordance with the provisions of Section 7(b) above shall be designed and constructed utilizing equipment which, at a minimum, complies with the characteristics set forth under "Design Objectives" in Section 7(f) above such that the cable system, upon completion of the rebuild, meets the characteristics set forth under "Performance Objectives" in Section 7(f) above. Following certification by VCC (subject to review and verification by the City) that the rebuilt system complies with the foregoing, the Design Standards in Section 7(f) above shall be considered desirable objectives for operation of the system but shall not be considered requirements or obligations which must be satisfied by VCC. The failure of VCC to comply with said Design Standards shall in no manner be deemed a breach or violation of its Franchise. Rather VCC shall comply with any technical standards or guidelines of the Federal Communications Commission (FCC) applicable to VCC's cable system in force, as of the effective date of this Franchise. (2) Should the FCC allow local regulation of the technical performance characteristics of cable systems, the characteristics set forth under "Performance Objectives" of Section 7(f) shall become the technical standards for all purposes of the Franchise enforceable against VCC in accordance with the terms of the Franchise, provided VCC has completed its system rebuild in accordance with the provisions of Section 7(b), and the City shall adopt no more stringent standards during the term of the Franchise. (3) The characteristics set forth under "Design Example" in Section 7(f) are illustrative only and sff /ORD3816z (11- 08 -90 -8) shall be of no force or effect under the Franchise for any purpose whatever. 8. Grantee Support for PEG Access: (a) The Grantee shall provide channel capacity for public, educational and governmental ( "PEG ") programming and for local origination programming. No later than June 30, 1991, the Grantee shall initially dedicate one channel for government and educational programming exclusively to the City, subject to such joint use regulations for the sharing of the dedicated channel as the City may establish by resolution. (b) If, at any time three (3) years or more following the date the access channel is first utilized for PEG programming, such channel is not in use and programmed with PEG programming during at least fifty percent (50 %) of the weekdays for at least fifty percent (50 %) of the time during any consecutive thirteen (13) hour period for ten (10) consecutive weeks, the channel shall revert to the exclusive use of Grantee for a period of three (3) years. VCC shall make available to City time elsewhere on VCC's cable system (which may be a local origination channel utilized by VCC and /or others) for carriage of such PEG programming as may be provided by City following reversion of such access channel. At its option, VCC may permit City the right to continue the use of such access channel, notwithstanding the inability of City to satisfy the minimum usage criteria set forth in the first sentence of this Subsection, provided that VCC may at any time thereafter recover exclusive use of the access channel in accordance with the provisions of this Subsection if any of such minimum usage criteria are not then satisfied. If the access channel has reverted to the exclusive use of VCC, VCC shall again provide an access channel to City for purposes of PEG programming if, at any time subsequent to the three (3) year period following reversion, City shall develop a comprehensive proposal with respect to the use of the access channel in a manner reasonably anticipated to equal or exceed the minimum usage criteria set forth in this Subsection. The provisions of this Subsection shall apply to the reinstatement of such channel. For purposes of computing the minimum usage criteria set out in this Subsection, City may meet this standard with non - original, and /or character - generated programming. Further, programming may be duplicated during the minimum usage measuring period (i.e., the same program may be recablecast multiple times during the measuring period). Further, in determining compliance with the minimum usage criteria: (i) -7- sff /ORD3816z (11- 27 -90 -9) public, educational and governmental programming presented on the access channel by City shall be aggregated and (ii) all time allocated to commercial or advertising programming shall be excluded. (c) VCC shall make available one additional PEG channel dedicated exclusively to the City pursuant to the following criteria: (i) The first access channel must be in use and programmed with PEG programming during at least 80% of the weekdays for at least 80% of the time during any consecutive 13 -hour period for ten consecutive weeks. For purposes of this computation, all time allocated to commercial, advertising, character generated or similar programming will be excluded from the determination of the aggregate time that channel is in use and programmed with PEG programming during the period in question. (ii) At least 50% of the programming present during such 10 week period must be produced within and related to communities within Southern California. (iii) No more than 33 -1/3% of the aggregate hours utilized for PEG programming during such 10 -week period can represent repeat programming. (iv) At least 50% of all programming presented during such 10 -week period must have been produced within six weeks of the commencement of such 10 -week period. (v) The City shall have conducted an independent survey and shall have held one or more public hearings to assess the desire of the subscribers within the City for a second access channel in view of other programming which may be provided to such subscribers, which survey and public hearing must evidence the desire of subscribers for a second access channel. (vi) Grantee must have completed the rebuild of its system serving Moorpark, as sff /ORD3816z (11- 08 -90 -8) more particularly set forth in Section 7(b) of this Franchise Ordinance, to a 450 MHz configuration and such additional PEG channel will be made available within 180 days following th City's request and verification of compliance with each of the foregoing conditions. (viii) Whenever such additional PEG channel is programmed with original (non - repeated) locally produced video access programming for less than four (4) hours per day for six (6) days per week for a continuous period of not less than twelve (12) consecutive weeks, the City may permit the Grantee to utilize unused channel capacity on that channel under the following conditions: (1) Any request from the Grantee to use any fallow capacity designated for PEG Access must be submitted in writing to the City Council. (2) The City Council shall approve the petition from the Grantee to use fallow channel capacity if it finds that: (i) the utilization of the channel is as represented; (ii) the Grantee has not acted in violation of any of the provisions of the Franchise regarding utilization of the channel; and (iii) there are no special circumstances which would justify the denial or delay of implementation of the use of the channel -: After approval, the Grantee may continue to utilize the channel for any other purposes it so chooses, consistent with the Franchise, until it is required to be designated for PEG purposes pursuant to the provisions hereof. (d) If, at any time one year or more following the date the second channel is first utilized for public, educational and governmental programming, any of the conditions set forth in Subsection (c) above is not satisfied as to the first access channel providing public, educational and governmental programming over any ten (10) sff/ORD3816z (11-08-90-8)' week period, the second access channel shall revert to the exclusive use of the Grantee for a period of at least three (3) years. If, upon expiration of such period, each of the conditions set forth in Subsection (c) above is satisfied as to the first access channel, a second access channel shall again be made available for purposes of public, educational and governmental programming upon 180 days prior written notice from the City. The provisions of this Subsection shall apply to the reinstatement of the second channel or any subsequent reinstatement thereof. (e) The City shall have sole responsibility for the operation and management of the access channel(s) provided by the Grantee, including without limitation all personnel required in connection with the operation of the channel(s), all facilities, equipment and material necessary for the operation of the channel(s), the carriage of programming on the channel(s) and the establishment and administration of all rules, regulations and procedures pertaining to the use and scheduling of the programming presented over the channel(s). (f) The City shall not use any access channel for commercial purposes, except with respect to (i) the use of the channel by the Grantee under such terms and conditions as are agreed upon with the City or (ii) underwriting recognition provided in any PEG programming as an integral part thereof solely for purposes of acknowledging funding for such programming. (g) The City shall in no manner lease, transfer or divest itself of control of the use of any access channel for any purposes to any other person, provided that the City may transfer management and control of such channel to a nonprofit public access management entity, in which case such public access management entity shall be subject to the provisions of this Section. (h) VCC shall provide an adequate public access production studio equipped with sufficient portable and stationary equipment so as to allow production of videotaped programming. The studio shall be maintained and operated at a location within one of the communities served by Grantee's cable system in Los Angeles or Ventura Counties within a thirty (30) mile radius of Moorpark. Such studio and equipment shall be as the Grantee from time to time reasonably determines to be necessary or appropriate. The Grantee shall provide replacement equipment, adequate consumable supplies and maintenance parts for said equipment and studio. -10- sff /ORD3816z (11- 08 -90 -8, delivery; cost of labor, including social security, unemployment insurance, worker's compensation insurance and other benefits; rental value of equipment and machinery; and the additional cost of supervision and field office personnel directly attributable to the work; plus ten percent (10 %) of such aggregate amount as reasonable allowance for administrative and overhead expenses. (q) Upon request of the City, VCC will provide the capability for insertion of video programming from public school sites, at other than VCC's expense, provided such sites are designated prior to construction of the system rebuild described in Section 7(b) above. VCC will provide City at least 120 days written notice of the final date by which to designate such school sites, and at least 60 days before such date, VCC shall provide an estimate of the cost of constructing such return lines. This capability will be provided through the construction of a single return path over VCC's existing cable system or, at Grantee's sole discretion, a separate dedicated return line from each site. Separate channels would not be assigned to each school to achieve this capability. The City will control access by each school and carriage of its programming over the Moorpark system. VCC will be reimbursed for its actual cost (labor and material) for constructing this capability. The work will be undertaken in accordance with a schedule reasonably developed by the Grantee. The City and /or affected public school districts shall be responsible for securing all necessary permits, authorizations, easements and rights -of -way for the construction of the return line from each such school site. The Grantee may utilize the services an independent contractor experienced in the construction of comparable systems for purposes of undertaking such construction, in which case the Grantee will be reimbursed for all costs charged by such contractor for constructing such extension. The cost for such extension shall include the cost of materials utilized in such extension, including sales tax and cost of delivery; cost of labor, including social security, unemployment insurance, worker's compensation insurance and other benefits; rental value of equipment and machinery; and the additional cost of supervision and field office personnel directly attributable to the work; plus ten percent (10 %) of such aggregate amount as reasonable allowance for administrative and overhead expenses. The construction of such capability from each site shall be undertaken concurrently as part of a single construction project for all sites and shall not be -13- sff /ORD3816z (11- 08 -90 -8) performed at two or more points in time as separate projects. (r) VCC will interconnect its system with the system operated by Mountain Meadows Cable Television to the limited extent of providing the governmental and educational access channel or channels for the City set out under Section 8(a), 8(c) and 8(m) above to Mountain Meadows Cable Television. The cost of this interconnection will be borne by Mountain Meadows Cable Television. Provided all technical issues have been resolved in advance and Mountain Meadows has advanced Grantee the costs of establishing such interconnection, VCC will complete this interconnection in accordance with a schedule reasonably developed by the Grantee. 9. PEG Access Capital Improvements. (a) The Grantee shall provide access support in the initial amount of One Hundred Thousand Dollars ($100,000.00), to be paid in two installments of Fifty Thousand Dollars ($50,000.00) each. The first such installment shall be paid on or before December 31, 1990. The second such installment shall be paid on or before March 31, 1991, provided that the City shall have provided the Grantee with a comprehensive operating plan for the development of governmental and /or educational programming by the City. The operating plan shall contain, as a minimum, the following information: (i) List of intended governmental and /or educational users. for each user. (ii) Planned type and level of programming (iii) Capital equipment, facilities and estimated costs required to support the intended uses. This shall include a survey of existing publicly -owned equipment that might be available for the intended purposes. (iv) City commitments to cover operating expenses and /or support facilities for at least a three (3) year period. -14- sff /ORD3816z (11- 08 -90 -8) Based solely on City's certification that the operating plan is reasonable and appropriate to meet governmental and /or educational needs and objectives, Grantee shall provide the requested funds no later than thirty (30) days after receipt of City's operating plan. Grantee is expected to comment upon the plan and provide recommendations to improve its effectiveness, but may not withhold any requested funds accompanied by a City certification of need. (b) City shall account to the Grantee on an annual basis for the expenditures of such funds as the Grantee provides for PEG access equipment and facilities. Such accounting shall be in reasonable detail as to adequately identify the sources and uses of all such funds. Such accounting shall be completed and made available to the Grantee within one hundred eighty (180) days after each fiscal year during which the funds were expended. (c) On or after December 1, 1995, City may request and Grantee shall provide additional funds for governmental and /or educational access equipment and facilities in the sum of Thirty -Seven Thousand Five Hundred Dollars ($37,500.00). Any request shall: (i) include an operating plan as provided for in, and shall be subject to each of the requirements of, subparagraph (a) above; and (ii) include a certification by the City that it has been programming its initial dedicated channel for the one (1) year preceding the request in compliance with Section 8(b). (d) Based on the provisions of the Cable Communications Policy Act of 1984, City shall determine from time to time the funding level that it desires to make available for PEG access operating costs, and the most appropriate entity to manage government and public access operations. City may negotiate agreements with municipalities within the County, or with neighboring jurisdictions, educational institutions, or others to share operating expenses, as appropriate. City and Grantee may negotiate an agreement for management of PEG facilities, if so desired by both parties. (e) Subject to the specific provisions of this Franchise Ordinance, the funds specified in this Section shall fulfill Grantee's obligations in full under Section 5.06.506 of the Chapter with respect to the purchase of facilities and equipment for PEG programming and Grantee shall have no further obligations under such provisions, except that Grantee is responsible for providing such access channels as are specified in this Franchise Ordinance, and -15- sff /ORD3816z (11- 08 -90 -8) for maintenance, repair, replacement and insurance of PEG equipment or property under its ownership. Grantee shall not own equipment for governmental program production, nor equipment for educational program production purchased by the City with Grantee funds. Grantee shall not be responsible for maintenance, repair, replacement or insurance of equipment acquired for or utilized in connection with educational or governmental programming. (f) Beginning on the effective date of the Franchise Ordinance and continuing through and including the earlier of June 30, 1991 or the activation of the governmental and educational access channel provided under Section 8(a) and 8(m) of this Franchise Ordinance, the Grantee shall cablecast, on a taped- delayed basis, and free of charge, City Council meetings, and, upon request, Planning Commission meetings, School Board meetings, and special events as designated by the City, provided that the Grantee shall cover no more than four (4) such meetings and events in any one month. The Grantee shall provide, free of charge, the labor for the four events. The City shall pay the labor charges for additional events or programming at the Grantee's cost. For other than regularly scheduled meetings of the City Council, the City shall give the Grantee at least five days notice of all special meetings to be programmed. Grantee shall provide to the City copies of all meetings taped by it and cablecast on 3/4" videotape or other suitable media. After the earlier of June 30, 1991 or the activation of the governmental and educational access channel provided under Section 8(a) and 8(m) of this Franchise Ordinance, the City shall be responsible for providing all personnel, equipment and facilities required for the production and transmission of its programming on the governmental and educational service channel. However, on request of the City, Grantee shall provide training in the operation and use of the equipment acquired by the City in connection with this channel, as well as in the operation of the channel itself and in the insertion procedures for the carriage of such governmental and educational programming as the City elects to present over this channel, provided that Grantee's personnel are qualified in the operation of such equipment. The City shall be responsible for the maintenance, repair, replacement and insurance of such equipment as is acquired for or utilized in connection with governmental and educational programming. -16- sff /ORD3816z (11- 08 -90 -8) 10. Letter of Credit; Insurance Coveraqe; Bonds. (a) Letter of Credit. The Grantee shall establish a letter of credit in the sum of Ten Thousand Dollars ($10,000.00). The letter of credit shall be in a form acceptable to the City Attorney, as required pursuant to Section 5.06.406 of the Chapter. The Grantee shall restore to the letter of credit any amount the City withdraws as liquidated damages, within thirty (30) days after the City withdraws the money. The Grantee may request that the City reduce the letter of credit from Ten Thousand Dollars ($10,000.00) to Five Thousand Dollars ($5,000.00) any time after Grantee has certified that the upgrade of the cable television system to 60 channels under Section 7(b) has been completed, that Grantee has satisfied PEG access requirements under Section 8(a) and 8(m), and is not in material breach of the Franchise. The City shall complete its review of compliance by the Grantee with such conditions within sixty (60) days after receipt of the Grantee's request. The Grantee may provide cash or a cash equivalent in substitution of the letter of credit provided under this Section 10, including without limitation a certificate of deposit or savings account, the rights of which have been signed over to the City. Any interest accrued on such cash or cash equivalent security shall be paid over to the Grantee. (b) Liability Insurance Coveraqe. Contemporaneously with the filing of its acceptance of this Franchise, the Grantee shall deposit certificates of insurance evidencing the existence of policies of insurance required pursuant to the provisions of the Chapter. Initially, the limits of such policies shall be at least $5,000,000 combined single limit liability for personal injury and property damage. The limits of such insurance coverage may be increased to reflect increased hazards associated with the conduct of the Grantee's business operations in the City, provided that such increase occurs no more than once during any three -year period and, provided further, that such increase does not exceed twenty percent (20 %) of the then - existing limits of coverage required under this Subsection. The City shall be included as a named insured on each of said policies pursuant to Section 5.06.414 of the Chapter. -17- sff /ORD3816z (11- 08 -90 -8) (c) Other Insurance Coverage. The Grantee shall maintain during the term of this Franchise, all other insurance required by law, including, but not limited to, Worker's Compensation coverage. As to all such required coverage, the Grantee shall deposit with the City certificates of insurance evidencing all such coverage. The City shall be included as a named insured on each of said Policies pursuant to Section 5.06.414 of the Chapter. (d) Construction Bonds. At least thirty (30) days prior to commencing the system rebuild referred to in Section 7(b) above, the Grantee shall provide, and file with the City a construction bond in the amount of Fifty Thousand Dollars ($50,000.00), in a form acceptable to the City Attorney, which bond shall be in full force and effect during construction of the rebuild. Such bond shall be terminated upon satisfactory completion of the rebuild described in Section 7(b). The Grantee shall provide a construction bond in an amount not more than Fifty Thousand Dollars ($50,000.00), and in a form acceptable to the City Attorney, which bond shall be in full force and effect when major additions are made to the system during the term of this Franchise. 11. Liquidated Damages. The City finds, and the Grantee, by its Acceptance, agrees, that as of the time of the renewal of this Franchise, it is impractical, if not impossible to reasonably ascertain the extent of damages which will be incurred by the City as a result of a material breach by Grantee of its obligations under this Franchise. Accordingly, the City, through its City Manager, Council or a hearing officer, may, in its discretion, assess liquidated damages for the following: (A) the sum of Two Hundred Dollars ($200.00) per day, for each calendar day in excess of thirty (30) days beyond the time set for completion of: (i) the system rebuild as provided under Section 7(b), or (ii) completion of the dedicated channel as provided under Section 8(a) and 8(m), provided that no such assessment shall be made for the failure of the Grantee to complete the system rebuild or dedicated channel within such period attributable to any events subject to Force Majeure pursuant to the Chapter; (B) the sum of Fifty Dollars ($50.00) per day for each calendar day in excess of thirty (30) days that Grantee is in breach of any other requirement of its Franchise; this sum shall increase to Seventy -Five Dollars ($75.00) per day beginning on the fifth anniversary date of the effective date of this Franchise Ordinance. Sff/ORD3816z (11-08-90-8) Prior to assessing any liquidated damages against the Grantee, the City shall have provided the Grantee with notice and opportunity to cure in accordance with the provisions of the Chapter. In addition, the Council may order the forfeiture of the bonds for delays exceeding six months, and the termination of the Franchise for delays exceeding eight months, in each case for delays within the control of Grantee and otherwise subject to the notice and cure provisions of the Chapter. The City finds, and the Grantee, by its Acceptance, acknowledges and agrees that the above-described liquidated damages provisions represent a reasonable sum in light of all of the circumstances. Said liquidated damages sums shall be applicable to each calendar day of delay following expiration of the 30-day notice period provided above during which Grantee has been found by the City Council to be in material default pursuant to this Section. The Grantee shall pay any liquidated damages assessed by the City Council within ten (10) days after they are assessed. If they are not paid within the ten-day period, the City may withdraw them from the security fund. 12. Privacy. Beginning July 1, 1991, Grantee shall not market mailing lists with names and addresses of subscribers unless Grantee has provided subscribers with a form which permits subscribers to check a box and mail in the form to delete his or her name from the mailing list. 13. Alternative Remedies. Neither the termination of the Franchise nor the imposition of liquidated damages shall be deemed to be the exclusive remedy for a breach of this Franchise. 14. Billinq Statement. Where the Grantee provides an entry level of cable service comprised solely of local broadcast stations and PEG programming, compliance with Section 5.06.704 of the Chapter shall be deemed to exist when the Grantee notifies its subscribers in the City on a quarterly basis of the availability of such entry level of service and the price of that level of service. Such notification may appear on the subscriber's monthly statement, in a bill stuffer provided with such monthly statement, in a newsletter or any other form of written notice directed to the subscriber. 15. :_Acceptance- The Grantee shall, within forty- five (45) days after passage of the Franchise ordinance, file in the office of the City Clerk a written Acceptance of the Franchise Ordinance executed by the Grantee in a form approved by the City Attorney. -19- sff /ORD3816z (11- 08 -90 -8) 16. Subscriber Satisfaction Survey. The subscriber satisfaction survey required under Section 5.06.1112 of the Chapter may be satisfied by a survey including the Los Angeles and Ventura County communities served by Grantee. SECTION 2. The City Clerk shall certify the adoption of this Ordinance. PASSED, NOVEMBER APPROVED AND ADOPTED this 1990. 21st day of ayor I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the City Council of the City of Moorpark at a regular meeting thereof, held on the 21stday of NOVEMBER 19 90, by the following vote of the COUNCIL: AYES: COUNCILMEMBERS MONTGOMERY, PEREZ, COUNCILMEMBERS WOZNIAK AND MAYOR LAWRASON NOES: NONE COUNCILMEMBERS ABSENT NONE COUNCILMEMBERS APPROVED AS_.,TO FORM: CITY A TORN vY -20- MOORPARK BERNARDO M.PEREZ Mayor SCOTT MONTGOMERY Mayor Pro Tern ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember PAUL W. LAWRASON, Jr. Councilmember LILLIAN KELLERMAN City Clerk STATE OF CALIFORNIA ) COUNTY OF VENTURA ) CITY OF MOORPARK j SS. STEVEN KUENY City Manager CHERYLJ.KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer I, Lillian E. Kellerman, City Clerk of the City of Moorpark, California, do hereby certify under penalty of perjury that the foregoing Ordinance No. 134 was adopted by the City Council of the City of Moorpark at a meeting held on the 21 day of NOVEMBER 1990, and that the same was adopted by the following vote: AYES: COUNCILMEMBERS MONTGOMERY, PEREZ, WOZNIAK AND MAYOR LAWRASON NOES: NONE ABSENT: NONE ABSTAIN: NONE WITNESS my hand and the official seal of said City this 26th day of NOVEMBER , 1990. ILLIAN E. KELLE MA 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864