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HomeMy WebLinkAbout024929 ORD - 06/25/2002 ORDINANCE AMENDING THE MASTER CABLE SERVICES REGULATORY ORDINANCE GOVERNING USE OF CITY STREETS, LANES, AVENUES, ALLEYS, SIDEWALKS, BRIDGES, RIGHTS-OF- WAY, EASEMENTS, HIGHWAYS AND OTHER PLACES IN THE CITY OF CORPUS CHRISTI, TEXAS BY PROVIDERS OF CABLE SERVICES NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRSITI AS FOLLOWS: SECTION I. That the Master Cable Services Regulatory Ordinance adopted in Ordinance 023833 is amended. The amended document is attached as an exhibit to this ordinance. 024929 INDEXED That the/oregoin ordinance was read for the first time and passed to its second reading on this the dJ i1ay of , 2002, by the following vote: ~ Rox A. Kinniwo ~. 't~ - John Longoria ~ \. --ff.t J~~N"yol" ~~ Henry Garrett ~ Mark Scott ~- Bill Kelly 4 fh.. That the foregoing ordinance was read for the second time and passed finally on this the -dB Day of ~ A y\ ~ , 2002, by the following vote: Samuel 1. Neal, Jr. ~ Brent Chesney -* ~ Samuel 1. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Mark Scott it -PO . ~ Rex A. Kinnison John Longoria Javier D. Colmenero Jesse Noyola Bill Kelly ~ PASSED AND APPROVED this the ~y of ~, 2002. ATTEST: ~ Armando Chapa, City Secretary LEGAL FORM APPROVED JAMES R. BRAY, JR. CITY ATTORNEY ~ )..1 ,2002 By: X~~ Lisa Aguilar Assistant City Attorney 024929 MASTER CABLE SERVICES REGULATORY ORDINANCE CITY OF CORPUS CHRISTI, TEXAS MASTER CABLE SERVICES REGULATORY ORDINANCE MASTER CABLE SERVICES REGULATORY ORDINANCE TABLE OF CONTENTS Page ARTICLE I. STATEMENT OF INTENT AND PURPOSE...........,........,.....................,....,.........,5 I, I Statement of Intent and Purpose. ........................,.........,..................,.......,.,.........,..,5 ARTICLE 2. SHORT TITLE .....,......,.........,.................,........................,.....,....,....................,.,....,6 ARTICLE 3 , DEFINITIONS,......................... .,............... .,.........,............,.,.....................,.,........ ....6 3.1 "Basic Cable Service"....... .........,........... .....,...............,......... .......,....,............,.........6 3,2 "Cable Act" .............................................,...............,..............,...........,.,.......,.,.,.......6 3.3 "Cable Internet Service" ...,.......................,......,..........................,....,..................,...7 3.4 "Cable Service" or "Service" .,..................................,.,...........,.............,...,.....,.,......7 3.5 "Cable Television System" or "Cable System" ...................,.....................,.,..........,7 3,6 "Capital Contribution" ........................................,................,................,...........,......8 3,7 "Capital Costs"....,...,......,......,.,......... ........................,........,.....,.,..,.......,.......,... ,..,...8 3,8 "Channel".........,.........,.. ,.......,............,.......,..................,....,.... ,................,...............8 3,9 "City" ...................,.........,...,..... ,.......,.........,.... ,.......,.......... ,............. ,.....,.,....,..........8 3,10 "Class IV Cable Communications Channel" ,...,....,.......................,....,.........,....,.....8 3,11 "Community Access Corporation" ..,...............,............,................,..........,.,.,.......,..8 3,12 "Complaint" ,........,.......,.........,...................................,..............,.......,.....,.......... ,. ....8 3.13 "Converter" .,.........,..........,............,......................................,.....,...... ,..,....,. ,..,....,....8 3,14 "Council" ................ .................................,.....,..,.. ,..........................,.......,......,.........9 3,15 "Direct Incremental Costs" .....,................,...,..,.....,........,..............,....,.......,.,...........9 3,16 "Drop" ......., ...........,............... ................................,.......................,.......,.,............. .., 9 3,17 "Educational Access Channels" .,............,..........,..,.............................,.,......,...........9 3.18 "Effective Date" ...........,.........,.......,..,......................,........,................,.....,...,....,....,. 9 3,19 "FCC" ..........,........,........ .........,.............................,........ ,......,.........................,..,.....9 3.20 "Franchise" .... ,.......................... ............,......................,........................,.......,.,....,...9 3,21 "Franchise Agreement" ,.............,......,...................,.................,....................,....,..,.1 0 3,22 "Franchise Area" ..........,..,........................,........,.. ,............,....................... ,............10 3,23 "Franchise Fee".................................,. ,......,........................,................,.,...............1 0 3,24 "Government Access Channels" .............,............,..,.................,.......,.....,.,.,....,.....,.6 3,25 "Grantee"......... ............,............... ,.............,............,...........,..................,....,.,..,.,. .,1 0 3,26 "Grantor"..................,..,...........................,..,............,..,................,..,..,...........,....,. ..11 3.27 "Gross Revenues ................,.........,..........................,.....,.................,......,..,.,......,...11 3,28 "Incumbent Grantee" ,...,..,..............,.....,.......,. ,.................. ,......................,....,.,. ,......7 3.29 "Institutional Network" or I-Net..........,.......,.................................,....,....,..............,7 3.30 "Institutional Network Services" ,........,.............,.....,.........,.............,..,..............,...12 3,31 "Lockout Device" ................,......................................................,.,..,.......,......,..,.....8 MASTER CABLE SERVICES REGULATORY ORDINANCE 3,32 "Municipal Telecommunications Consent Fee" ,..,........,..,................,..........,........12 3.33 "Non-Commercial" ,.............,.....,..........,..,.........,......,..........,........,.......,...........,... .13 3,34 "Normal Business Hours" .,...............,..........,......,..............,.............,.......,.,...........13 3,35 "Normal Operating Conditions" ........,...............,.............,.,..,...,.........,..................13 3,36 "Other Programming Service" .,............ ,.................,........,........,.... ,.......,..,.,........... ,9 3,37 "Person" ........... ,..........,............ ............................,......,.................,.......,.,....,.,...... .13 3.38 "Public Access Channels",. ..,.....,...,......................,..,.....,........,.... ,.....,........... ,...... ,13 3.39 "Resident" .....,............,..,......,..,.......,............,..... ,.................... ,..,.....,....,...........,... .13 3 .40 "Right-of-Way".,............,........ ..,............,..... ,......,......,...... ....,..,.....,.........,........... ..13 3.41 "Service Interruption......... .............. ..,....... ........,........,..,...................,....,.........,.... ,14 3.42 "Standard Installation" .... ,.................,..,..... ....................,.....,..........,.....,.............,. ,14 3.43 "Subscriber" .........................,..,.. ,..........,.........,.........,.............,..,..,..............,..,.,... .14 3.44 "System" ........,.....,.........,....................................,..............,.......... ,.....,.......,.,...... ..14 ARTICLE 4, FRANCHISE REQUIREMENTS..,......,......,.....,............,.............,...,.............,.......1 0 4.1 Unlawful to Operate Without a Franchise. .........,..,..,........,..............,.,...........,..,...10 4.2 Franchises Non-Exclusive. ,...,.,....................,..,..................,..........,............,....,.....1 0 4.3 Franchises Non-Discriminatory. ,............,......,........... ,.........................,....,....,...... ,15 4.4 Franchise Territory"......,.....,...,..,...,.....,................,........,.....,.............,. ,......... ,...... .16 4.5 Term of the Franchise. .....,.....,.......,......,..,..,......,.....................,.,..........,.,..............16 4.6 Federal, State, and City Jurisdiction, .,..,.............,...,.............,..,.............,.,.........,...16 4.7 Rights Reserved To Grantor. ,...,...,............................,..,.............,.....,.......,....,...,..,17 4,8 Franchise Agreement. ....... .....,..,..........,...,.........,................ ,.....,..................,.,....,. .18 4.9 Initial Franchise Applications, ,......,....,........,.,..,............,.....,....,.....,..,.........,......,..19 4.10 Consideration of Initial Applications. ..................................,...,.................,...........20 4.11 Franchise Renewal. ..............,..,.............,.........................,..........,........,.,.......,........21 4.12 Grant of Additional Franchise and Competing Service. ....,..,..........,.......,.,.......,.,.21 4,13 Permits for Non-Franchised Entities, ..............................,........,................,...,.,......23 4,14 Competition Review. .................................,.............,.,........,..,..........,..,.................19 AR TI CLE 5. DESIGN PROVISIONS,.........,..,..........................,..............,............. ,....,.........,... .20 5.1 System Design. ...............................................,...............,...........,........................ ..20 5,2 The System.................... ..,.............................,..,.........,...........,..........,.,.......,.,...... ,.25 5.3 Drops to Public Buildings, ......................................,..,........,.............,.......,.,.........,25 5.4 Use of Grantee Facilities, ,.................................,.......................,..........,................,26 5.5 Upgrade of System,..........,......,......,.........,.....,..........................................,........... ,26 5.6 Non-Discriminatory Access To Cable System, ..........,..,..........................,....,.......26 ARTICLE 6. INSTITUTIONAL NETWORK, AND PUBLIC EDUCATIONAL AND GOVERNMENTAL ACCESS ................,......,...,......,......,............................................................27 6.1 Institutional Network, Access Channels ..............,..,........,................,..,.........,.......27 6.2 Proof of Performance Testing. ..,..........................,.......................................,....,....28 11 . .,..,,,,..'._..0__.._.... ._.__._.~.__.___....___...._.___..,____.~_ MASTER CABLE SERVICES REGULATORY ORDINANCE ARTICLE 7. TECHNICAL STANDARDS AND CUSTOMER SERVICE PRACTICES ..,....,29 7.1 General Technical Standards and Customer Service Practices.,....,............,..........29 7 .2 Technical Standards. ,......,...,.............,...................,................,..,......................,.... ,29 7.3 Test and Compliance Procedure, ..,..,............................,..,..,..........,............,..........29 7.4 Emergency Requirements, .................................................................,.................,.3 0 7.5 Programming Decisions, ............,.............................,........,.....................,..............30 7.6 Cable System Office Hours and Telephone Availability..,.............,......................30 7,7 Service Calls and Installations, ,..,.........,......,..,............,....,........,..,.........,....,.........34 7.8 Repairs and Interruptions ............,..........................,.........................,....,.........,.....,3 7 7,9 Disconnections, Downgrades and Refunds,.................,.....,.....................,......,......39 7.10 Communications Between Grantees and Subscribers.............,..,..........,................43 7.11 Complaint Log. ...........,...........................,.............................,..,..,..........................47 7,12 Parental Control.........................................,................................,.................,........4 7 7,13 Periodic Subscriber Survey, ...................................................................,...............47 7,14 Service Area. ....................................................,............................................,........47 7.15 Customer Service Reporting Requirements, ..........,..,..,...........,..,.......,....,...........,.48 7.16 City Monitoring, ...................,.......................................,...................,.........,....,.....49 ARTICLE 8, CONSTRUCTION STANDARDS .............,........................,.......................,..........46 8,1 Right-of-Way Construction. ..........,..,...............,.....................,..............................46 8.2 Compliance with Laws. ...,...........................................................,.........................46 8.3 Minimum Interference. ...........,....................,.................................................,.......4 7 8.4 Repair of Property. .......................................................................,..,..............,....,..4 7 8.5 Erection of Poles Prohibited. .........................................,..,................,...................47 8.6 Reservations of Street Rights. ..................................,..,...,............................,.........48 8.7 Underground Installation, ,...,..........................,..,.................,................,...........,... .52 8.8 Conduit..................................................................................................,....,.............., 8.9 Clearing Poles and Cables. ............,...................,..,....................,..,..............,....,....53 8.10 Moving Facilities. .............,.....,....................,......................................,....,.............54 8.11 Work Performed by Others, ....,....................,..,......,..,................,..,..............,....,....54 8.12 Duty to Grantee, ......................,...,.......,.....................,........,...................................55 ARTICLE 9, OPERATION AND MAINTENANCE ....,......,.................,..,..,..,............,....,....,....55 9.1 Open Books and Records. ,..,..........,......,..,.....................,..,..,..,..,...................,..,....55 9.2 Communications with Regulatory Agencies. .............,..,..,..,.........................,....,..55 9.3 Annual Reports. ................................,.......,........,..,.................,.........................,... .56 9.4 Additional Reports. ,.............................,.......,..,..............,................,..............,...... .57 9,5 Strand-and- Trench Maps,. ,............,........................ ,....,........,...............,.................57 9.6 Service Contract and Subscriber Information, ..,...........,..............,..,.......,....,........,57 ARTICLE 10, GENERAL FINANCIAL AND INSURANCE PROVISIONS ..........,................54 10,1 Franchise Fee, ,........................,................,.................,.......,...........,............,....,.....54 iii _-'_0. __'._. ~ "_.'_"."_""___'__"_'_"~ MASTER CABLE SERVICES REGULATORY ORDINANCE 10.2 Security Fund, ........................................,.......................................,..,.........,......... ,56 10.3 Penalties Procedure, ...........................,................,.......................................,......... ,56 10.4 Bonds, Indemnification, and Insurance......,................................,..,.......,..............,61 ARTICLE 11. REVOCATION ,................,....................................................................,.........,....62 11,1 Grounds for Revocation. ......................,.........................,..,..,.......,..,...................,..62 11.2 Procedure. .....................,.... ,..............,........................................................,.......... .62 ARTICLE 12. FORECLOSURE, RECEIVERSHIP AND ABANDONMENT ....,..,..................63 12,1 Foreclosure,........................,.............,......,........,..........................,..........,............. ..63 12,2 Receivership,..................,.......................................................,..................,........... ,64 ARTICLE 13, PURCHASE OF SySTEM,........................,.,............,..,...................,.........,....,....65 13,1 Grantor's Right to Purchase System upon Receipt By Grantee ofa Bona Fide Offer, .,.".".".". .....,.". ",.". .....,. ",. '" ....... .".".". .....,.".". ,....."."."... .""."...".,."...... ,65 13,2 Purchase By Grantor Upon Termination of Franchise Term or Revocation of Franchise. ',.....,..,..".,',.....,"',."...,.....".".."......,.".".".....,.".".,...,."."....,.,.".,....,.". 65 ARTICLE 14, SALE OR TRANSFER,......,.........,......,.........,.............,......................,...,.............66 14.1 Sale or Transfer of Franchise, ................,...............,............,.............,....,......,........66 ARTICLE 15. RIGHTS OF INDIVIDUALS PROTECTED......,.......,..,...........,..,.........,....,.......67 15.1 Discriminatory Practices Prohibited, .............,..,...............,..,..,..........,..,......,....,....67 15,2 Subscriber Privacy. ..............,............,.......,........,............................................,.... ..68 ARTICLE 16. MISCELLANEOUS PROVISIONS...................,..,................,..........,.........,........68 16,1 Rate Regulation,.................,......,.............,.....................,........................,.............. ,68 16.2 Rights Reserved to Grantor.................................................,..,..........,..,...........,....,64 16.3 Administration of Franchise, .....................,.......................................................... .65 16.4 Nonenforcement by the City. ....,................,..............................................,....,......,65 16,5 Governing Law and Choice of Forum. ,..,......,.....,..,..,..,........,..,..,..............,....,..,..65 16,6 Severability, ,....................,.............................,...............,...................,.........,........ .65 16,7 Publication of Notices. ...................,........................................................,.............. 70 IV MASTER CABLE SERVICES REGULATORY ORDINANCE ORDINANCE NO. ARTICLE I. STATEMENT OF INTENT AND PURPOSE 1.1 Statement of Intent and Purpose, A, The City of Corpus Christi, Texas, pursuant to applicable federal and State law, is authorized to grant one or more nonexclusive Franchises to construct, operate, maintain, and reconstruct Cable Systems within the City, B. The City Council of Corpus Christi finds that Cable Service has become an integral part of its citizens' lives, and that evolving Cable Systems have the potential to play an even more dramatic role in the future, providing great benefits and advanced capabilities to the City. At the same time, The Council further finds that the public convenience, safety, and general welfare can best be served by establishing regulatory powers that are vested in the City or such Persons as the City designates, C, In order to ensure that the City and its Residents receive state of the art Cable Services and capabilities as this technology further evolves, all Franchises granted pursuant to this Ordinance will be subject to periodic review and modifications to keep current with changing law, technology, and Services. It is the intent of this Ordinance to help ensure that local cable operators provide the best possible Cable Service to Residents of the City and any Franchises issued pursuant to this Ordinance shall be deemed to include this finding as an integral part thereof. D. The Council further finds that on-going industry consolidation could result in less local accountability, and that therefore stringent customer service standards, including liquidated damage proVISIOns, may be the only practical means of 5 ^--.----...----.- .- -~...,_.. '-"'----' MASTER CABLE SERVICES REGULATORY ORDINANCE ensuring compliance and approximating the costs of Franchise Agreement non- compliance to the City and its Residents. ARTICLE 2. SHORT TITLE This Ordinance shall be known and may be cited as the "City of Corpus Christi Master Cable Services Regulatory Ordinance," ARTICLE 3, DEFINITIONS For the purpose of this Ordinance, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number. The words "shall" and "will" are mandatory and "may" is permissive. Words not defined shall be given their common and ordinary meaning, 3.1 "Basic Cable Service" means any Cable Service tier that includes the lawful retransmission of local television broadcast signals and any Public, Educational, and Governmental Access programming required by this Ordinance or a Franchise Agreement to be carried on the basic tier. Basic Cable Service as defined herein shall be consistent with 47 U.S.c. S 543(b)(7) (1997). 3.2 "Cable Act" means the Cable Communications Policy Act of 1984, Pub, L. No, 98-549, (codified at 47 U,S.C. SS 521-611 (1982 & Supp, V, 1987) as amended by the Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No, 102-385, and the Telecommunications Act of 1996, Pub, L. No. 104-104 (1996) as may, from time to time, be amended, 6 ----"'---. .~.. ---- -.-..,-......-----...., MASTER CABLE SERVICES REGULATORY ORDINANCE 3,3 "Cable Internet Service" means any Cable Service offered by a Grantee whereby Persons receive access to the Internet through the Cable System, 3.4 "Cable Service" or "Service" means: A. The one-way transmission to subscribers of (i) video programming, (ii) other programming service; or (iii) other Services agreed to in a Franchise Agreement unless lawfully determined not to be a Cable Service, B. Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service; and C. For purposes of this Ordinance, unless determined otherwise under applicable federal law, Cable Internet Service shall be considered Cable Service, 3.5 "Cable Television Svstem" or "Cable Svstem" means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Service to multiple Subscribers within the Franchise Area, but such term does not include: A, A facility that serves only to retransmit the television signals of one or more television broadcast stations; B. A facility that serves Subscribers without using any public Right-of-Way; or C, A facility of a common carrier which is subject, in whole or in part, to the provisions of 47 U.S.C. 99201-226, except that such facility shall be considered a Cable System to the extent such facility, whether on a common carrier basis or otherwise, is used in the transmission of video programming directly to Subscribers. 7 MASTER CABLE SERVICES REGULATORY ORDINANCE 3.6 "Capital Contribution" means a contribution provided by a Grantee as determined in a Franchise Agreement that may at the City's discretion be utilized for the Capital Costs of the municipal access channel facilities, or to help defray the costs of an I-Net. 3.7 "Capital Costs" means costs associated with the purchase of assets, products or other resources that are designed to provide Service for more than one year. 3.8 "Channel" means a portion of the electromagnetic spectrum [or fiber optic capacity] that is capable of carrying one standard six (6) megahertz video signal, in either analog or digital form. Consistent with future changes in technology and/or applicable law, the parties may mutually agree to a different definition in an individual Franchise Agreement. 3,9 "Citv" means the City of Corpus Christi, Texas. 3.10 "Class IV Cable Communications Channel" means a signaling path provided by a Cable System to transmit signals of any type from a Subscriber terminal to another point in the System. 3.11 "Communitv Access Corporation" or "CAC" means a non-profit Access Corporation serving the City, its assignees or delegees, or any other entity designated by the Grantor whose duties shall include the financing, management, and programming of Public and Educational Access, and whatever other duties with respect to the PEG Access Channels that the Grantor from time to time may delegate, 3.12 "Complaint" means any written or electronic inquiry, allegation, or assertion, made by a Person regarding Service, which requires corrective action on the part of the Grantee. 3,13 "Converter" means an electronic device that converts signals to a frequency not susceptible to interference within the television receiver of a Subscriber and, through the 8 '"-'-"'-' ._-.._"--"_._. -"-_._,.~._---" .... -.,- ---"'~----~-"-----'._-~'--"---'.' ."-~. ._-. MASTER CABLE SERVICES REGULATORY ORDINANCE use of an appropriate Channel selector, permits a Subscriber to view all authorized Subscriber signals delivered at designated converter dial locations. 3.14 "Council" means the City Council of Corpus Christi, Texas. 3.15 "Direct Incremental Costs" means the costs actually incurred by Grantee in meeting an obligation under its Franchise which Grantee would not otherwise have incurred in order to either operate and conduct the business of its Cable System or meet another obligation of the Franchise, 3.16 "Drop" means the cable or cables that connect users of the System to the distribution system in order to receive Service. 3,17 "Educational Access Channels" means Channels specially designated for Non- Commercial educational access programming use. 3.18 "Effective Date" means the date a Franchise becomes effective in accordance with the Franchise and the rules and procedures of the City. 3.19 "FCC" means the Federal Communications Commission or a designated representative. 3.20 "Franchise" means the rights and obligations extended by the City to a Person to own, lease, construct, maintain, or operate a Cable System in the Right-of-Way within the Franchise Area for the purpose of providing Cable Services. Any such authorization, in whatever form granted, shall not mean or include: (i) any other permit or authorization required for the privilege of transacting and carrying on a business within the City required by the ordinances and laws of the City; (ii) any permit, agreement, or authorization required in connection with operations in the Right-of-Way including, without limitation, permits and agreements for placing devices on or in poles, conduits, or 9 ---...-.-..-.....---...-- "_._.~---,~-_.,...-, MASTER CABLE SERVICES REGULATORY ORDINANCE other structures, whether owned by the City or a private entity, or for excavating or performing other work in or along the Right-of-Way. 3.2 I "Franchise Agreement" means a Franchise granted pursuant to this Ordinance, 3,22 "Franchise Area" means the entire geographic area within the City as it is now constituted or may in the future be constituted. 3,23 "Franchise Fee" means any tax, fee, or assessment of any kind imposed by the City or other governmental entity on a Grantee solely because of its status and activities as such. The term "Franchise Fee" does not include: (i) any tax, fee, or assessment of general applicability (including any such tax, fee, or assessment imposed on both utilities and cable operators or their Services but not including a tax, fee, or assessment that is unduly discriminatory against cable operators or cable Subscribers); (ii) capital costs that are required by a Franchise Agreement to be incurred by a Grantee for PEG Access equipment and facilities; (iii) costs associated with the construction and operation of an 1- Net; (iv) requirements or charges incidental to the award or enforcement of a Franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, compliance audits, penalties, or liquidated damages; (v) any fee imposed under Title 17 of the United States Code; or (vi) any generally applicable Right-of-Way fee imposed by the City on the Grantee as a telecommunications provider pursuant to Title 9, Chapter 283 of the Texas Local Government Code, or other applicable law. 3,24 "Government Access Channels" means Channels specially designated for non- commercial governmental access programming use. 3.25 "Grantee" means a Person who is granted a Franchise or that Person's lawful successors, transferees, or assignees, 10 MASTER CABLE SERVICES REGULA TORY ORDINANCE 3.26 "Grantor" means the City or its delegates, 3.27 "Gross Revenues" means any revenue derived directly or indirectly by a Grantee from the operation of its Cable System to provide Cable Service, within the Franchise Area, including revenues received by its affiliates, subsidiaries, parent, or any other Person, in which a Grantee has a financial interest of five percent (5%) or more, where such revenue in the ordinary course of business should have been paid to Grantee. By way of illustration and not limitation, this definition would include revenue derived from the sale of Cable System advertising time by an Affiliate of Grantee. Gross Revenues shall include but are not limited to, pay cable fees, installation and reconnection fees, Franchise Fees collected from Subscribers, leased channel access fees, Converter rentals, fees for Cable Internet Service (unless it is determined by applicable law that it is not a Cable Service), home shopping revenues, all Cable service lease payments from the Cable System; payments or other consideration received by the Grantee from programmers for carriage of programming on the Cable System and accounted for as revenue under GAAP; and advertising revenues, The term does not include taxes on Services furnished by a Grantee and imposed directly upon any Subscriber or user by federal, state, or local law and collected by Grantee on behalf of such governmental unit, or amounts collected from subscribers for public, educational and government access. Nor does the term include any revenues earned by the Grantee through the provision of telecommunications services as defined under the Telecommunications Act of 1996. 3.28 "Incumbent Grantee" means a cable operator that has been granted a Franchise by the City prior to the effective date of this Ordinance, II -"--'--' ......_-, "--"'---'~'-'--'-'-"'--'~- MASTER CABLE SERVICES REGULA TORY ORDINANCE 3.29 "Institutional Network" or "I-Net" means capacity, fibers or both, from both within the primary cable network and/or separately constructed networks that are dedicated to municipal users or other governmental and educational users as determined by the City Manager or hisfher designee for two-way, broadband communications, The I-Net includes all equipment and maintenance of equipment required to make the capacity available including but not limited to fiber, cable modems, coaxial cable, switching, routing, transmitting and receiving equipment necessary for the use of the network as determined in the individual Franchise Agreement. 3,30 "Institutional Network Services" means the provision of an I-Net by a Grantee to municipal users and other governmental and educational users as determined by the City Manager or hisfher designee, pursuant to the terms of a Franchise Agreement for non- commercial applications including but not limited to, two-way dedicated voice, data, video, Internet and telephony channels connecting and interconnecting user facilities; computerized traffic control systems; Supervisory Control and Data Acquisition (SCADA) or automatic meter reading (AMR) systems for municipally-owned utilities; and the interconnection of facilities serving police, fire and other public safety systems. 3.3 I "Lockout Device" means a mechanical or electrical accessory to a Subscriber's terminal that inhibits the video or audio portions of a certain program or certain Channel(s) provided by way of a Cable System. 3.32 "Municipal Telecommunications Consent Fee" means a fee assessed on a telecommunications provider for the use of the City's Rights-of-Way pursuant to Title 9, Chapter 283 ofthe Texas Local Government Code, or other applicable law, 12 MASTER CABLE SERVICES REGULATORY ORDINANCE 3.33 "Non-Commercial" means Channels or programming that are operated on a not-for-profit basis, 3.34 "Normal Business Hours" means those hours during which most similar businesses in the community are open to serve customers, In all cases, Normal Business Hours must include some evening hours, at least one night per week, and some weekend hours. 3.35 "Normal Operating Conditions" means any and all situations or conditions that are ordinarily within the control of a Grantee, including but not limited to, management or corporate decisions; employee conduct; staffing levels; special promotions; pay-per-view events; rate increases; regular peak or seasonal demand periods; electronic and video equipment; maintenance, repair or upgrade of the Cable System, and any associated computer or software systems. Those conditions that are not within the control of a Grantee include, but are not limited to, natural disasters; civil disturbances; power outages; telephone network outages; and severe or unusual weather conditions, 3.36 "Other Programming Service" means information that a Grantee makes available to all Subscribers generally. 3.37 "Person" means any corporation, partnership, proprietorship, individual, organization, governmental entity or any natural person. 3.38 "Public Access Channels" means Channels specially designated for non-commercial public access programming use, 3.39 "Resident" means any Person residing in the City. 3.40 "Right-of-Wav" means each of the following which have been dedicated to the public or are hereafter dedicated to the public and maintained under public authority or by others and located within the City, including without limitation the surface and space within, 13 MASTER CABLE SERVICES REGULATORY ORDINANCE above and below any real property in which the City has an interest in law or equity, whether held in fee, or other estate or interest, or as a trustee for the public, including, but not limited to any public street, boulevard, road, highway, freeway, lane, alley, court, sidewalk, parkway, swale, river, tunnel, viaduct, bridge, park, or any other place, area, easements, rights-of-way and similar public property and areas, or real property owned by or under the control of the City. 3.41 "Service Interruption" means the loss of picture or sound on one or more Channels on the System, or the degradation of the picture and/or sound quality on such Channels to the extent that the Subscriber is unable to use the signals, regardless of the cause, for any reason whatsoever. 3.42 "Standard Installation" means any Service installation that can be completed using a Drop of one hundred twenty-five (125) feet or less, unless otherwise specified in the Franchise Agreement. 3.43 "Subscriber" means any Person who or which elects to subscribe for any purpose to Cable Service provided by a Grantee by means of, or in connection with, the Cable System, and whose premises or facilities are physically wired and lawfully activated to receive Cable Service from Grantee's Cable System, including Persons who receive Cable Service without charge according to the terms of the Franchise Agreement. 3.44 "Svstem" means a Grantee's Cable System operated pursuant to a Franchise Agreement within the Franchise Area. 14 MASTER CABLE SERVICES REGULATORY ORDINANCE ARTICLE 4. FRANCHISE REOUIREMENTS 4.1 Unlawful to Operate Without a Franchise. It shall be unlawful for any Person to construct, operate or maintain a Cable System or to provide Cable Service in the City without a Franchise. Any such person shall be subject to a fine of $500 per day. The payment of such fine notwithstanding, all such violators shall be subject to all other applicable provisions of this Ordinance, including but not limited to the payment of a Franchise Fee. 4.2 Franchises Non-Exclusive. Any Franchise granted pursuant to this Ordinance shall be nonexclusive. The Grantor specifically reserves the right to grant, at any time, such additional Franchises for a Cable Television System or any component thereof, to any other Person including itself, as it deems appropriate, subject to applicable federal and State law. 4.3 Franchises Non-Discriminatorv. In the event the City grants more than one Franchise or similar authorization for the construction, operation, or maintenance of any Cable System to a qualified Person in a Franchise Area, the City's policy shall be to grant the Franchises on terms that are non- discriminatory and competitively neutral, provided that nothing herein shall be construed as requiring the use of identical terms or conditions, or limit the enforceability of conditions that are freely negotiated. 15 .__.._..~- MASTER CABLE SERVICES REGULA TORY ORDINANCE 4.4 Franchise Terri torv. Any Franchise shall be valid within the entire Franchise Area. Unless a Franchise Agreement specifically states otherwise, every Franchise shall apply to the entire territorial area of the City. 4.5 Term of the Franchise. A Franchise Agreement shall establish the term of Franchise. A Franchise Agreement may provide for a term of up to fifteen (15) years. 4.6 Federal. State. and Citv Jurisdiction. A. This Ordinance shall be construed in a manner consistent with all applicable federal and State laws. B. In the event that the federal or State government discontinues preemption in any area of cable communications over which it currently exercises jurisdiction in such marmer 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 by law. C. Grantee's rights are subject to the police powers of the City to adopt and enforce ordinances necessary to the health, safety, and welfare of the public. Grantee shall comply with all applicable general laws and ordinances enacted by the City pursuant to that power. D. The provisions of this Ordinance shall apply to all Franchises granted or renewed after the effective date of this Ordinance. This Ordinance shall also apply to all existing Franchises, to the extent not inconsistent with the terms of any such Franchise or applicable law. In the event of any conflict between the terms and 16 ___--u.-~.._~...-. ._.,___"..,~_~_._" MASTER CABLE SERVICES REGULATORY ORDINANCE conditions of a Franchise Agreement and the provisions of this Ordinance, and other generally applicable regulatory ordinances of the City, the specific terms of the Franchise Agreement shall control. A Franchise Agreement (including all of Grantee's particular rights, powers, protections, privileges, immunities and obligations associated therewith) shall constitute a legally binding contract between the City and Grantee, and as such, carmot be amended, modified or changed by the City without the consent of Grantee in any manner whatsoever, whether by ordinance, rule, regulation or otherwise, to impose on Grantee more stringent or burdensome requirements or conditions; provided, however, that nothing herein contained shall preclude the City from the proper exercise of its police powers, or its powers of eminent domain. E. In the event of a change in state or federal law which by its terms would require the City to amend this Ordinance, the parties shall modify the existing Franchise in a mutually agreed upon marmer. F. Grantee shall not be relieved of its obligation to comply with any of the provisions of this Ordinance or a Franchise Agreement by reason of any failure of the City to enforce prompt compliance. 4.7 Rights Reserved To Grantor. A. In addition to any rights specifically reserved to Grantor by this Ordinance or a Franchise Agreement, Grantor reserves to itself every right and power that is required to be reserved by a provision of any other ordinance or under any other Franchise. 17 MASTER CABLE SERVICES REGULATORY ORDINANCE B. Grantor shall have the right to waive any prOVISIOn of this Ordinance or a Franchise Agreement, except those required by federal or State regulation, if the Grantor determines: (I) that it is in the public interest to do so and (2) that the enforcement of such provision will impose an undue hardship on a Grantee or the Subscribers. To be effective, such waiver shall be evidenced by a statement in writing signed by a duly authorized representative of Grantor. Waiver of any provision in one instance shall not be deemed a waiver of such provision subsequent to such instance, nor be deemed a waiver of any other provision of this Ordinance or a Franchise Agreement unless the statement in its final form approved by the City Council so recites. 4.8 Franchise Agreement. A. Every Grantee shall agree to the terms and provisions of a Franchise Agreement as negotiated between the Grantee and the Grantor. B. In addition to those matters required elsewhere in this Ordinance to be included in the Franchise Agreement, each Franchise Agreement must contain the following express representations by each Grantee: (I) Grantee accepts and agrees to all of the provisions of this Ordinance, as it exists as of the effective date of the Grantee's Franchise Agreement, except as set forth in Section 4.6, and any supplementary specifications as to construction, operation, or maintenance of the System which the City may include in the Franchise Agreement. (2) Grantee has examined all of the provisions of this Ordinance and agrees to the terms and conditions herein. 18 MASTER CABLE SERVICES REGULATORY ORDINANCE (3) Grantee recognizes the right of the City to adopt such additional Ordinances of general applicability as it shall find necessary in the exercise of its police power. C. Every Franchise Agreement shall contain such further conditions or provisions as may be negotiated between the City and a Grantee, except that no such conditions or provisions shall be such as to conflict with any provisions of state or federal law. In case of any conflict or of any ambiguity between any terms or provisions of a Franchise Agreement and this Ordinance, the provisions of the Franchise Agreement shall control. 4.9 Initial Franchise Applications. Any Person desiring an initial Franchise for a Cable System shall file an application with the City. A reasonable nonrefundable application fee established by the City shall accompany the application or renewal application. Such application fee shall not be deemed to be "Franchise Fees" within the meaning of Section 622 of the Cable Act (47 U.S.c. 9 542), and such payments shall not be deemed to be (i) "payments in kind" or any involuntary payments chargeable against the compensation to be paid to the City by Grantee, or (ii) part of the compensation to be paid to the City by Grantee pursuant to this Ordinance or a Franchise Agreement. An application for an initial Franchise for a Cable Television System shall contain, where applicable: A. A statement as to the proposed Franchise Area; B. Resume of prior history of applicant, including the legal, technical, and financial expertise of applicant in the cable television field; 19 MASTER CABLE SERVICES REGULATORY ORDINANCE C. List of the partners, general and limited, of the applicant, if a partnership, or the percentage of stock owned or controlled by each shareholder, if a corporation; D. List of officers, directors, and managing employees of applicant, together with a description of the background of each such Person; E. The names and addresses of any parent or subsidiary of applicant or any other business entity owning or controlling applicant in whole or in part, or owned or controlled in whole or in part by applicant; F. A current financial statement of applicant verified by a CPA audit or otherwise certified to be true, complete, and correct to the reasonable satisfaction of the City; G. Proposed construction and Service schedule; and H. Any additional information that the City may require for the administration of the Franchise. 4.10 Consideration ofInitial Applications. A. Upon receipt of any application and application fee for an initial Franchise, the City Administrator shall prepare a report and make his or her recommendations respecting such application to the City Council. B. A public hearing may be held prior to any initial Franchise grant, at a time and date approved by the Council. Within thirty (30) days after the close of the hearing, the Council shall make a decision based upon the evidence received at the hearing as to whether or not the Franchise(s) should be granted, and, if granted, subject to what conditions. C. All applicants for an initial Franchise grant shall submit an application fee of twenty thousand dollars ($20,000) to compensate the City for its costs in reviewing, preparing 20 MASTER CABLE SERVICES REGULATORY ORDINANCE and awarding a Franchise, including the costs of outside consultants. Upon grant of a Franchise the City may request the payment of an additional fee to the extent that the reasonable costs of the franchise review and negotiation process exceed the initial application fee amount. Consistent with the Cable Act, all such fees shall not constitute or be credited towards a Grantee's Franchise Fee obligations. 4.11 Franchise Renewal. Franchise renewals shall be in accordance with applicable law including, but not necessarily limited to, the Cable Communications Policy Act of 1984, as amended. Grantor and a Grantee, by mutual consent, may enter into renewal negotiations at any time during the term of the Franchise. The City reserves the right, unless prohibited by applicable law, to require a Grantee to pay the reasonable costs of the franchise renewal and negotiation process. 4.12 Grant of Additional Franchise and Competing Service. A. Since competing or overlapping Franchises may have an adverse impact on the public Rights-Of-Way, on the quality and availability of Services to the public and may adversely affect an existing operator's ability to continue to provide the Services and facilities it is presently providing under a Franchise, in granting a franchise in an area where another Grantee is operating the City may consider the potential impact which the grant of an additional Franchise may have on the community. This determination may be made simultaneously with the adoption of the Grantee's Franchise Agreement. In considering whether to grant one or more additional Franchises, the City shall specifically consider, and address in a written report or in provisions of the Franchise Agreement, the following issues: 21 MASTER CABLE SERVICES REGULA TORY ORDINANCE (1) The positive and/or negative impact of an additional Franchise on the community. (2) The ability and willingness of the specific applicant in question to provide Cable Services to the entire Franchise Area which is served by the existing cable operator. The purpose of this subsection is to ensure that any competition which may occur among Grantees will be on terms which when taken as a whole do not give a competitive advantage to one Grantee over another. (3) The amount of time it will take the applicant to complete construction of the proposed System and activate Service in the entire Franchise Area; and, whether the applicant can complete construction and activation of its System in a timely marmer. (4) The financial capabilities of the applicant and its guaranteed commitment to make the necessary investment to erect, maintain, and operate the proposed Cable System for the duration of the Franchise term. In order to ensure that any prospective Grantee does have the requisite current financial capabilities, the City may request equity and debt financing commitment letters, current audited financial statements, bonds, letters of credit, or other documentation to demonstrate to the City's satisfaction that the requisite funds to construct and operate the proposed System are available. (5) The quality and technical reliability of the proposed System, based upon the applicant's plan of construction and the method of distribution of 22 MASTER CABLE SERVICES REGULATORY ORDINANCE signals, and the applicant's technical qualifications to construct and operate such System. (6) The experience of the applicant in the erection, maintenance, and operation of a Cable Television System. (7) The capacity of the public Rights-Of- Way to accommodate one or more additional Cable Systems and the potential disruption of those public Rights-Of-Way and private property that may occur if one or more additional Franchises are granted. (8) The disruption of existing Cable Service and the potential that the proposed Franchise would adversely affect the Residents of the City. (9) The likelihood and ability of the applicant to continue to provide competing Cable Service to Subscribers within the entire Franchise Area for the duration of the Franchise. (10) Such other information as the City may deem appropriate to be considered prior to granting any competing or overlapping Franchise. 4.13 Permits for Non-Franchised Entities. A. The City may issue a license, easement, or other permit to a person other than the Grantee to permit that person to traverse any portion of the Grantee's Franchise Area within the City in order to provide Service outside, but not within the City. Such license or easement, absent a grant of a Franchise in accordance with this Ordinance, shall not authorize nor permit said person to provide Cable Service of any type to any home or place of business within the City nor render any other Service within the City. 23 MASTER CABLE SERVICES REGULA TORY ORDINANCE B. Such license, easement or permit shall require the payment of fee for occupancy of the public Right Of Way to the extent permitted by applicable law. 4.14 Review for Competition A. The City recognizes that the cable television and telecommunications industries are in a period of convergence and that the technologies and services provided by these industries are rapidly changing, and that the Telecommunications Act of 1996 promoted and encouraged competition between and among these formally discrete industries. At this time it is premature to know fully the extent to which there will be changes in law, technology or services that may impact entities that have been or may be granted Franchises or licenses to use the City's Rights-Of- Way. It is the desire of the City to be a communications friendly city, that encourages the development of competitive advanced communications capabilities for the benefit of all its citizens, for this reason the regulatory ordinances and Franchises of the City should not impede or restrict the fair opportunity to compete, but rather are intended to provide uniform and consistent requirements for all similarly situated providers. B. Consistent with the above findings, the City Manager or designate, is authorized to undertake an on-going evaluation and study of these changing and emerging technologies and services, as well as legal requirements relating to them, and upon request by the City, submit a report to the City regarding the impact of this Ordinance and its impact on existing providers within the City and the development of competition. 24 MASTER CABLE SERVICES REGULATORY ORDINANCE ARTICLE 5. DESIGN PROVISIONS 5.1 Svstem Design. A. Every Grantee shall offer Service that meets the current and future needs of the City. The Franchise Agreement shall incorporate a description of the Grantee's proposal including the general design and capabilities of the System to identify for the City how the System will meet the current and future Cable needs of the City. B. The Franchise Agreement shall include provlSlons to provide for a "periodic review" between the City and a Grantee to evaluate changes in law, technology, or service, and reasonable procedures for mutually agreed upon modifications to the Franchise Agreement to incorporate changes identified as desirable or necessary as a result of any such periodic review. 5.2 The System. Every System shall pass by every single-family dwelling unit and multiple-family dwelling unit within the Franchise Area in accordance with line extension policies set forth in the applicable Franchise Agreement. Service shall be provided to Subscribers in accordance with the schedules and line extension policies specified in the applicable Franchise Agreement. 5.3 Drops to Public Buildings. A. Every Grantee shall provide installation of at least one (1) cable Drop, and one (I) outlet, provide monthly Basic Cable Service, without charge, to public buildings as specified by the Franchise Agreement. 25 "--'_._"'~-,-",--,-----" MASTER CABLE SERVICES REGULATORY ORDINANCE B. All such Cable Service outlets shall not be utilized for commercial purposes. The City shall take reasonable precautions to prevent any use of the Grantee's Cable System in any inappropriate manner or that may result in loss or damage to the System. Users of such outlets shall hold the Grantee harmless from any and all liability or claims arising out of their use of such outlets, other than for those claims arising out of improper installation or faulty equipment. 5.4 Use of Grantee Facilities. The Franchise Agreement shall incorporate provIsions regarding the City's use of a Grantee's poles, ducts and conduits, on mutually agreed upon terms. 5.5 Upgrade of System. Every Grantee shall upgrade its System (herein referred to as the "System Upgrade"), if required, as set forth in its respective Franchise Agreement. 5.6 Non-Discriminatorv Access To Cable SYstem. A. The City and its Residents have an increasing need and desire for broadband access to the Internet and other on-line Services. B. In order to protect competition and provide for the future needs of the City, unless otherwise required by applicable state or federal law, the Grantor reserves any legal right it now has, or may in the future have, to implement an "open access" requirement to ensure that a Grantee will be required to provide non- discriminatory access to its Cable System to providers of Internet Access Service, irrespective of whether such providers are affiliated with the Grantee. A Grantee may be required, if legally permissible, to implement "open access" requirements to its Cable System to non-affiliated Internet Access Service providers if the 26 MASTER CABLE SERVICES REGULATORY ORDINANCE Grantee or its affiliates or subsidiaries under its control determine to do so in a similar marmer in other Cable Systems owned and operated by the Grantee or its affiliates or subsidiaries under its control. B. The foregoing notwithstanding, it is recognized that "open access" and the legal authority of local franchise authorities to compel such access is under review, and the potential impact on Subscribers is not yet fully known. Accordingly, Grantees will not be required to provide non-discriminatory access to their Cable System until further review by the Grantor and pending clarification of the City's legal authority, as well as an evaluation by the City of the merits and policy considerations related to this issue. By adopting this Ordinance, neither the City nor any Grantee has waived any rights, obligations, claims, defenses or remedies regarding the city's authority to impose such conditions. Prior to the enactment of any such requirement, a Grantee will be provided with reasonable notice and an opportunity to be heard, including the right to present evidence on any findings to be made by the City with respect to the need for such a requirement. ARTICLE 6. INSTITUTIONAL NETWORK. AND PUBLIC EDUCATIONAL AND GOVERNMENTAL ACCESS OR "PEG ACCESS" 6.1 Institutional Network Every Grantee shall, to the extent provided in its Franchise Agreement, make available capacity from its network or dedicated fibers, or provide other support for an Institutional Network for governmental and educational use. To the extent that a Grantee is obligated to provide such support pursuant to its Franchise Agreement, such obligation will be 27 MASTER CABLE SERVICES REGULATORY ORDINANCE implemented in a competitively neutral marmer, on a per Subscriber basis with respect to any other Franchises granted after the adoption of this Ordinance. 6.2 PEG Access. Every Grantee shall provide a channel or charmels, bandwidth capacity, Service, and funding, for separate Public, Educational and Government Access Channels, as specified in their Franchise Agreement. All such PEG Access Channels shall be available to all Subscribers as part of their Basic Cable Service. Every Grantee shall make a good faith effort to negotiate with other cable providers in the City and the surrounding area to interconnect its network where feasible in order to facilitate any requirements with respect to shared access programming on a local and regional basis. The City reserves the right to negotiate Franchise Agreement provisions with respect to the uniform cablecasting of PEG Access programming throughout the entire City without respect to the specific Cable operator. Oversight and administration of the PEG Access charmels shall be responsibility of the City and each Grantee shall cooperate and coordinate with City to ensure that all PEG Access programming shall be accomplished in accordance with the terms of this Ordinance, including Exhibit A, and to the extent not inconsistent with this Ordinance, the terms of a Franchise Agreement. The City reserves the right to designate a Community Access Corporation or similar entity to administer one or more of the Access Channels. 28 MASTER CABLE SERVICES REGULATORY ORDINANCE ARTICLE 7. TECHNICAL STANDARDS AND CUSTOMER SERVICE PRACTICES 7.1 General Technical Standards and Customer Service Practices A. This Ordinance incorporates technical standards and establishes customer service practices that a Grantee must satisfy. In addition, a Grantee shall satisfY any additional or stricter requirements established by FCC regulations, or other federal, state or local law or regulation that may be adopted or amended from time to time. B. A Grantee shall maintain such equipment and keep such records as are required to enable the Grantor to determine whether the Grantee is in compliance with all standards required by these regulations and other applicable laws. 7.2 Technical Standards. The technical standards used in the operation of a System shall comply, at a minimum, with the technical standards promulgated by the FCC relating to Cable Systems pursuant to the FCC's rules and regulations and found in Title 47, Sections 76.601 to 76.617, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. The results of any tests required by the FCC, or a Franchise Agreement shall be made available to the City within thirty (30) days of written request. 7.3 Test and Compliance Procedure. Tests for a System shall be performed periodically in a manner so as to conform with FCC specifications. Upon request, the tests may be witnessed by representatives of the City and written test reports shall be made available to the City. If any test locations fail 29 MASTER CABLE SERVICES REGULATORY ORDINANCE to meet the performance standards, the Grantee shall be required to indicate what corrective measures have been taken and shall have the site retested. 7.4 Emergency Requirements. Each Grantee must provide emergency alert override capabilities in a marmer consistent with the FCC's emergency alert system ("EAS") rules and consistent with any local emergency alert council ("LEPC") plans adopted in response to the FCC's EAS rules that are applicable to the Franchise Area. 7.5 Programming Decisions. Each Grantee shall provide programming from each of the broad programming categories identified in its Franchise Agreement. All programming decisions remain within the sole discretion of each Grantee provided that each Grantee complies with federal law regarding notice to Grantor and Subscribers prior to any Channel additions, deletions, or realignments, and further subject to the Grantee's signal carriage obligations pursuant to 47 U.S.c. 99 531-536, as may be amended and subject to the City's rights pursuant to 47 U.S.c. 9 545, as may be amended. Grantor may require as part of a Franchise Agreement that a Grantee conduct and disclose the results of programming surveys, no more frequently than annually, at the Grantee's sole expense to obtain input on programming decisions from Subscribers in order to ensure that the Grantee meets the City's Cable- related needs and interests. 7.6 Cable System Office Hours and Telephone Availability. A. Every Grantee shall maintain a customer service office within the City, which shall include a place where subscribers may pay their bills, pick up and return converter boxes and comparable items and receive information on the Grantee and 30 MASTER CABLE SERVICES REGULATORY ORDINANCE its services. Such service office shall be open during Normal Business Hours, and no less than nine (9) hours per day on weekdays, including some evening hours, and four (4) hours on Saturdays. Every Grantee shall also maintain a publicly listed toll-free or local telephone line that is available to Subscribers twenty-four (24) hours a day, seven (7) days a week. The local or toll-free numbers shall be publicly listed. B. Every Grantee shall have trained representatives on hand for walk-in Subscriber visits and available to respond to Subscriber telephone inquiries during Normal Business Hours. The term "trained representatives" shall mean employees of the Grantee who have the authority and capability while speaking with a subscriber to, among other things, answer billing questions, initiate timely adjustment of bills, and schedule service and installation calls. C. If requested by the Subscriber, local personnel must use their best efforts to respond to Subscriber requests to speak with a "manager or supervisor" within a reasonable time of the request under normal operating conditions, during normal business hours and supervisory personnel will respond no later than the following business day. D. After Normal Business Hours, the telephone access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after Normal Business Hours must be responded to by a trained representative on the next business day. E. The Grantee shall prepare and distribute to the Grantor a calendar of holidays and business days on which the operator will be closed. Grantee shall also provide 31 MASTER CABLE SERVICES REGULATORY ORDINANCE notice to Subscribers through answering service/machine, voice mail messages, bill messages, or through its cable system regarding hours or dates when its offices will not be open. Such notice shall be provided during the five (5) days prior to the date the office will be closed. In addition, during such "closed" periods, the Grantee shall provide voice messages and notice on its premises of the emergency and after hours contact numbers. F. Under Normal Operating Conditions, telephone answer time by a customer service representative or automated response unit, including wait time, shall not exceed thirty (30) additional seconds. If a call must be placed on hold or transferred, the time for response by a human customer service representative should not exceed sixty (60) seconds. Under Normal Operating Conditions, these standards shall be met no less then ninety percent (90%) of the time measured daily averaged quarterly, and reported at least semi-annually, upon reasonable request. G. Under Normal Operating Conditions, Grantee shall establish an inbound telephone system upon which Subscribers shall not receive a busy signal more than three percent (3%) of the time. H. Abandonment rates for incoming calls may not exceed five percent (5%). 1. The period of three (3) hours following major outages (more than 25% of the Subscribers) or periods of natural disasters are not included in the response requirements above, provided that when feasible voice-mail information about the outage has been posted on phone answering equipment and/or the System bulletin 32 MASTER CABLE SERVICES REGULATORY ORDINANCE board (assuming outage is not City-wide) and the City has been notified that an outage was in progress. J. Actions of the Grantee which lead to a high volume of calls (such as incorrect bills, rate increases, late bills or fees, changes in Service, plant maintenance, missed appointments, etc.) are considered part of Normal Operating Conditions and are therefore not exempt from compliance with this Ordinance. K. Grantee shall respond to all Subscriber or user inquiries or complaints within a reasonable time and where a written complaint has been submitted within seven (7) calendar days of the receipt of inquiry or complaint, except to the extent a more stringent standard is set forth for specific types of activities, inquiries or complaints herein or in the Franchise Agreement. "Response" to the inquiry or complaint shall include correction of bills, completion of service calls or installations, written responses to Subscriber correspondence, correction of problems, provision of working converters, and requested changes in program Services. L. The Grantee is required to provide documentation of compliance with the requirements of this Section. On a semi-armual basis, the Grantee will provide upon reasonable request the Grantor with reports for hold time, busy signals, and abandonment rate. Upon written request the Grantee and the Grantor will meet by the twentieth (20'h) of the month following such semi-armual intervals in order for the Grantee to submit quarterly phone statistics and to explain the report for the period. If such information is not available, a detailed written explanation as to why such information is not available and a date certain upon which such 33 ---------..--....-..- ..__.._---~,--,"-..-.-~. MASTER CABLE SERVICES REGULATORY ORDINANCE information will be available, shall be provided by the Grantee. The Grantor may allow periods of excused non-compliance if the Grantee can provide reasonable documentation that these periods of non-compliance were not within Normal Operating Conditions. (I) The Grantee will be deemed in compliance if : (a) During a semi-armual period each criterion has been met or exceeded; or (b) If each criterion has been met or exceeded during four (4) months within the semi-armual period. (2) Should the Grantee be found to be in non-compliance, the Grantor shall notifY the Grantee in writing and specify the basis for the finding. Upon notification, the Grantee shall have thirty (30) days to cure such non- compliance. (3) If the Grantee, based upon the available monthly data, fails to cure the non-compliance within the thirty (30) day period, the Grantor may commence enforcement procedures as described in a Franchise. M. The Grantee is encouraged to maintain a customer service home page on the Internet where customers can obtain information. 7.7 Service Calls and Installations. Under Normal Operating Conditions, each of the following standards must be met no less than ninety-five percent (95%) of the time as measured on a quarterly basis: A. Unless otherwise requested by the Subscriber, a Grantee shall perform service calls, installations, and requested changes in Service -- upgrades, downgrades, 34 MASTER CABLE SERVICES REGULATORY ORDINANCE equipment changes, disconnections during normal business hours. Disconnections for non-payment may only be performed during hours the business office is open. B. At the time an appointment is scheduled, the Grantee shall inform the Subscriber of Service scheduling and rescheduling procedures, and/or required payments. C. The appointment window alternatives for Standard Installations, Service calls, and other installation activities, will be within a maximum four (4) hour time block during Normal Business Hours. Grantees may schedule Service calls and other installation activities outside of Normal Business Hours for the express convenience of a Subscriber, if so requested. D. Grantee shall make its best efforts to meet all scheduled subscriber appointments. E. If a Grantee's representative is running late for an appointment with a Subscriber and will not be able to keep the appointment as scheduled, the Subscriber must be contacted, and if the appointment must be rescheduled, it shall be rescheduled to the earliest available time that is convenient for the Subscriber. F. Appointments may not be canceled or rescheduled until field personnel of the Grantee make every reasonable effort to verify that the Subscriber or other authorized adult is not at the address for the appointment, including the following actions: (1) Knock, and use the doorbell to alert the subscriber; and/or (2) Look in the front or backyard as long as such action can be accomplished without trespassing on the Subscriber's property, and without subjecting the Grantee's representative to physical danger (e.g., dogs). 35 MASTER CABLE SERVICES REGULATORY ORDINANCE G. Any vehicle used for the installation, construction, maintenance, or repair of a Cable System shall bear the identification of the contractor or the applicable Grantee in a conspicuous place and marmer. H. Reconnections due to erroneous disconnection based on billing or technical errors must be completed at no charge within twenty-four (24) hours of notification by the affected Subscriber. 1. Reconnections after a disconnection attributed to non-payment of bills will be scheduled in accordance with the Grantee's regular business scheduling practice. J. Installations or reconnections may not be considered completed until all ordered, upgraded, or reconnected Services, are in full working order; and Subscribers may only be billed for Services actually received. K. A Subscriber's preference as to the point of entry into a residence shall be observed whenever feasible. Runs in building interiors shall be as unobtrusive as possible and outlets shall be located for the convenience of the Subscriber where technically reasonable. The Grantee shall use due care in the process of installation and shall repair any damage to the Subscriber's property caused by installation work. Such restoration shall be undertaken as soon as possible after the damage is incurred, shall be subject to subscriber approval of the corrective action, and Grantee shall use its best efforts to complete the corrective action within no more than thirty (30) days after the damage is incurred. Should such restoration not be corrected within thirty (30) days, the Grantee shall notifY the Subscriber as to the cause for the delay and the date when such action shall be completed. 36 MASTER CABLE SERVICES REGULATORY ORDINANCE 7.8 Repairs and Interruptions A. Excluding conditions beyond the control of the Grantee, every Grantee will begin working on Service Interruptions and outages within a reasonable timeframe but in no event later than twenty-four (24) hours after the Service Interruption becomes known. Every Grantee must begin actions to correct other Service problems on the business day following notification of such Service problems. (I) Any reports of "no picture/no sound" on the Services must be responded to and repaired within thirty-six (36) hours of such report, including arrival of another Service technician qualified to repair the problem if the first dispatched technician carmot. (2) Work not requiring the Operator to enter Subscriber premises (or property) shall not require the Subscriber to be available for an appointment and shall not be delayed on account of the Grantee's inability to arrange an appointment with the Subscriber. g., Work on all other requests for Service other than "no picture/no sound"out-of- service requests must begin by the next business day after notification of the problem and must ordinarily be completed within seventy-two (72) hours of the initial request. If for reasons beyond the Grantee's control a longer time for the completion of such repairs is necessitated, the Grantee shall exercise all due diligence to complete the work in the shortest period oftime possible. C. Outside repairs to cable plant which carmot be made by the initial Service technician dispatched, shall be re-scheduled within twenty-four (24) hours of the originally scheduled Service call except for those circumstances that are beyond 37 MASTER CABLE SERVICES REGULATORY ORDINANCE the Grantee's control. The Subscriber does not need to be home for outside plant and line repairs. D. A Grantee may intentionally interrupt Service only for good cause and for the shortest time possible, including interruption for system upgrade, maintenance and repair. Routine maintenance requiring Service Interruptions shall occur at times that affect the fewest number of Subscribers, generally between 12:00 AM. and 6:00 AM, subject to the safety needs of Grantee's employees. The Grantee shall post a crawling message on one or more of the System's Basic Service Charmels to advise Subscribers in advance of planned Service Interruptions. To the extent that specific neighborhoods will be affected by a plarmed outage, such as during an upgrade, the Grantee shall to the extent practical provide advance notice through telephone calls and/or door hangers. E. A Grantee shall provide a credit for one day's Service for each Service Interruption exceeding four (4) hours in any twenty-four (24) hour period, unless it is demonstrated that the Subscriber caused the outage, or the outage was planned as part of an upgrade or other work that occurred between the hours of 12:00 A.M. and 6:00 AM., of which the City and the Subscriber received appropriate prior notification F. Technicians that are employed by a Grantee and capable of performing Service related emergency repairs and maintenance must be available twenty-four (24) hours a day, including weekends and holidays. G. No charge shall be made to a Subscriber for any Service call relating to Grantee owned and Grantee maintained equipment after the initial installation of Cable 38 .______.-- __._.~. ..,_____~~___..__..___m MASTER CABLE SERVICES REGULATORY ORDINANCE Service unless the problem giving rise to the Service request can be demonstrated by Grantee to have been: I. Caused by the negligence or malicious destruction of cable equipment by the Subscriber; or 2. A problem established as having been non-cable in origin. H. An "Identified Outage" is construed as reports of no picture/no sound for the Cable Service from five percent (5%) or more Subscribers served by the same node within twenty (20) minutes of each other. 1. Cable drop lines, cable trunk lines, or any other type of outside wiring that comprise part of the Grantee's Cable System that are located underground, shall be placed in such locations pursuant to City Code, and the surrounding ground shall be restored as close as is practical to its condition immediately prior to such underground construction activity within one hundred and twenty (120Lhours after connection to the Cable System. Except for the Grantee's maintenance facilities, no cable drop line, cable trunk line, or any other type of outside wiring shall be permitted to lay upon the ground within the City, except for the express purpose of being immediately connected to the Cable System of the Grantee. The requirements of this subsection shall apply to all installation, reinstallation, Service or repair commenced by the Grantee within the City during normal operating conditions. 7.9 Disconnections. Downgrades and Refunds A. A Grantee shall not terminate residential Service for non-payment of a delinquent account unless the Grantee provides initial notice of the delinquency and 39 MASTER CABLE SERVICES REGULATORY ORDINANCE impending termination at least fourteen (14) calendar days prior to the proposed termination. The Notice shall be mailed, postage prepaid, to the Subscriber to whom the Service is billed. This section does not apply to Subscribers disconnected due to insufficient funds. B. The notice of delinquency and impending termination may be part of a billing statement, provided that the message is in bold or large type or other similar marmer designed to bring the information to the Subscriber's attention. C. No Subscriber may be disconnected for non-payment if payment of outstanding balances is made before the scheduled date for disconnection, up to and including the last business day before the scheduled disconnection. D. Service terminated without good cause must be restored without charge for the Service restoration. Good cause includes, but is not limited to, signal leakage, failure to pay, payment by check for which there are insufficient funds, theft of Service, abuse of equipment or System personnel, or other similar Subscriber actions. No Subscriber may be disconnected due to a Grantee's failure to timely or correctly post payments. E. The technician performing the disconnection must perform such disconnection in the safest reasonable manner. No Subscriber may be disconnected outside of Normal Business Hours or on Sundays or holidays. F. Subject to paragraph 7.9 F, disconnections for non-payment which are completed in the field must be accompanied by a door tag which provides notice that the technician has been present and a telephone number for Grantee's customer service office. Disconnections made remotely by computer require the Grantee to 40 MASTER CABLE SERVICES REGULA TORY ORDINANCE mail information describing the amount of payment in arrears as of the disconnection date, and applicable reconnection charges and procedures to the Subscriber. After disconnection, upon payment by the Subscriber of all proper charges in full, the Grantee shall reinstate Service as provided for herein. G. Absent extenuating circumstances, a Grantee is not required to reconnect a Subscriber with an undisputed outstanding balance. H. A Grantee is permitted to refuse orders for premium or "pay per view" Services from Subscribers with chronic non-payment records. 1. A Grantee may disconnect Subscriber premises that are responsible for signal leakage in excess of applicable federal limits. Grantee may effectuate such disconnection without advance notice, provided that the Grantee shall immediately notifY the Subscriber with door tags and/or telephone calls. If the source of the signal leakage is remedied, the Grantee shall reconnect the Subscriber at no charge. For purposes of this Section, use of FCC-approved navigation devices does not in and of itself constitute signal leakage. J. Subscribers may request disconnection or a downgrade of Cable Service at any time. The Grantee may not impose any charge for Service delivered after the requested date of disconnection as long as the request is made at least one day before the requested date of disconnection. As provided under federal law, subscribers may request a downgrade at no charge if made within thirty (30) days of a rate increase. K. If a Grantee fails to provide Cable Service requested by a Subscriber who is entitled to Cable Service under a Franchise Agreement or this Ordinance, the 41 MASTER CABLE SERVICES REGULA TORY ORDINANCE Grantee shall, after adequate notification and being afforded the opportunity to provide the Service, promptly refund all deposits or advance charges paid for the Service in question by said Subscriber. L. If any Subscriber has made an armual payment in advance and terminates Service because of the failure of a Grantee to render the Service in accordance with the standards set forth in a Franchise Agreement or this Ordinance, the Grantee shall refund to such Subscriber an amount equal to the prorated amount of the remaining period of the prepayment. M. The refund provisions provided for III this section do not alter a Grantee's responsibility to Subscribers under any separate contractual agreement or relieve a Grantee of any other liability. N. Subscribers may be asked, but not required as a condition of any refund or return of Subscriber deposits to personally return such equipment to the Grantee's office. O. Refunds for known system outages shall be obtained upon request of the subscriber of the cable operator. P. Nothing in this Ordinance shall limit the right of a Grantee to deny Service to any household or individual which has a negative credit or Service history with Grantee, which may include non-payment of bills, theft or damage to the Grantee's equipment, outstanding balances, or threats or assaults on employees of Grantee in the course of their employment. In the event Service is denied, the Grantee will give notice to the Subscriber of the right to contact the appropriate authority, as designated by the City. 42 MASTER CABLE SERVICES REGULATORY ORDINANCE 7.10 Communications Between Grantees and Subscribers. A. Notifications to Subscribers: (1) Every Grantee shall provide written information to Subscribers on each of the following topics at the time of installation, at least annually to all Subscribers, at any time upon request, and at least thirty (30) days prior to making significant changes in such information, provided, however, that Grantee shall make reasonable efforts to provide notification to the City of all such significant changes prior to notifying Subscribers: (a) Product and Services offered; (b) Prices and options for programming Services and conditions of subscription to programming and other Services and facilities. If Grantee reasonably determines it would reduce confusion as to what the total cost of Cable Service would typically be, at the time of installation, Grantee will quote to Subscribers prices that include typical Franchise Fees and any other fixed costs (such as FCC regulatory fees and public access support payments). Nothing in this section prohibits or restricts use of rates without Franchise Fees and/or other fixed cost elements in area-wide advertisements; ( c) Installation and maintenance policies including, when applicable, information regarding the Subscriber's home wiring rights and information describing ownership of internal wiring during the period Service is provided; (d) Instructions on how to use Services; 43 MASTER CABLE SERVICES REGULA TORY ORDINANCE ( e) Instructions on how to place a Service call; (f) Charmel positions of programming offered on a System; (g) Billing and Complaint procedures, including the name, address and telephone number of the City; (h) The Grantee's practices and procedures for protecting against invasions of privacy pursuant to the FCC's rules; (i) The availability of signal control devices and universal remotes and other compatible equipment (a list of brands and models shall be provided upon request); and G) The address and telephone number of the Grantee's office to which Complaints may be reported. (2) Grantee promotional materials, armouncements and advertising of Service to Subscribers, including pay-per-view or event programming, shall clearly and accurately disclose price terms. In the case of telephone orders, the Grantee shall take appropriate steps to ensure that price terms are clearly and accurately disclosed to potential customers before the order is accepted. (3) Subscribers will be given thirty (30) days advance notice of any changes in rates, programming Services, or Channel positions, if the change is within the control ofthe Grantee. All such notice shall be provided in writing by any reasonable means. In addition, every Grantee shall notify Subscribers thirty (30) days in advance of any significant changes in other information required by this section. Notwithstanding the foregoing or any provision 44 MASTER CABLE SERVICES REGULATORY ORDINANCE of this Ordinance to the contrary, a Grantee shall not be required to provide prior notice of any rate change that is the result of a regulatory fee, Franchise Fee, or any other fee, tax assessment, or change of any kind imposed by any government entity on the transaction between the Grantee and the Subscriber. B. Billing. (I) The organization and format of all bills must be developed in accordance with industry standards. (2) Bills must be clear, concise, and understandable. Bills must be fully itemized, with itemizations including, but not limited to, Basic and premium Service charges and equipment charges. (3) Bills must clearly show a specific payment due date. (4) If a Grantee chooses to itemize, as a separate line item on bills, Franchise Fees or other government imposed fees attributable to the total bill, such fees must be shown in accordance with any applicable law concerning the Grantee's ability to itemize such fees. Bill language related to Franchise Fees shall be identified in the following marmer: "Franchise Fee." Any passthrough of grants to support the City's government access channel may be separately identified on Subscriber bills as set forth in the Franchise Agreement. (5) Bills must clearly delineate all activity during the billing period, including optional charges, rebates, and credits. Nothing in this section prohibits or 45 MASTER CABLE SERVICES REGULATORY ORDINANCE restricts a Grantee from offering packages of programming to Subscribers and to identifY such packages on the Subscriber bill. (6) The billing statement must clearly and conspicuously indicate the past due date, and if applicable the date certain that a Subscriber's Service will be disconnected and a telephone number for the Subscriber to call to make payment arrangements or otherwise resolve a billing dispute. (7) Negative option billing is prohibited in accordance with applicable federal law. (8) In case of a billing dispute, a Grantee must respond to a Complaint from a Subscriber within fifteen (15) calendar days. Credits for Service shall be issued no later than the Subscriber's next billing cycle after determination that the credit is warranted. C. Late Payment for Cable Service Grantees shall provide reasonable notice to the City and Subscribers of the amount of any processing fees for late payments and the marmer of imposing such fees. Any late fee that may be imposed shall be in an amount and marmer consistent with applicable state and federal law. D. Construction and Outages To the extent feasible, the Grantee shall post override notices on appropriate System Charmels, and may make use of local advertising availabilities on programming Charmels, to advise Subscribers in advance of plarmed construction or maintenance that will cause or is likely to cause Service Interruptions. To the extent that specific neighborhoods will be impacted by a plarmed outage, such as 46 _,.__..__m._...__"_"'_'. MASTER CABLE SERVICES REGULATORY ORDINANCE during an upgrade, the Grantee shall provide at least seven (7) calendar days advance notice through telephone calls, door hangers or other reasonable means that are designed to be realistically effective in bringing the information to the attention of Subscribers. 7.11 Complaint Log. Subject to the privacy provisions of 47 U.S.C. 9 521 et seq., Grantor and every Grantee shall prepare and maintain written records of all Complaints made to them and the resolution of such Complaints, including the date of such resolution. Such written records shall be on file at the office of each Grantee. Every Grantee shall make available to Grantor a written summary of such Complaints and their resolution upon request. 7.12 Parental Control Every Grantee shall make available to any Subscriber upon request a "lockout" device for blocking both video and audio portions of any channel(s) of programming entering the Subscriber's premises. Such device shall be provided at a reasonable charge, except to the extent that federal law specifically provides otherwise. The Grantee may, however, require a reasonable security deposit for the use of such a device. 7.13 Periodic Subscriber Survey. The Franchise Agreement shall provide terms for a periodic Subscriber survey to assess the Cable-related needs of the community throughout the term of the Franchise as well as procedures for review and implementation of changes identified through any such survey. 7.14 Service Area No Grantee may discriminate in the build-out of its System to a particular area of the City or provision of Service to individual or groups of Residents on the basis of race, creed, 47 MASTER CABLE SERVICES REGULATORY ORDINANCE religion or economic condition. Unless the Franchise Agreement provides otherwise, every Grantee shall serve all areas of the City with populations of at least thirty (30) dwelling units per cable mile, including areas armexed subsequent to the grant of the Franchise. The Franchise Agreement shall provide a schedule of the areas to be served, and the specific build-out requirements of the Grantee, and shall also describe the process for extending service to areas that will meet minimum density requirements at some future date. Unless the Franchise Agreement provides otherwise, every Grantee shall extend Service to commercial areas at no additional costs where the costs to do so does not exceed the same costs of providing service in a residential area with a density of thirty (30) homes per mile. The Franchise Agreement shall also set forth the policies and procedures under which Cable Service will be extended to a Person requesting the extension of Service into an area that does not meet the requisite density standards. 7.15 Customer Service Reporting Requirements. In addition to the semi-annual reports on telephone Service compliance detailed in Section 7.6.M, the Grantor may require upon reasonable request a Grantee to periodically prepare and furnish to Grantor semi-armual reports and any other reasonable information relevant to the Grantee's compliance with the customer Service requirements of this Ordinance. Such reports shall include, at minimum, the following: A. A Service Interruptions Report that tracks information on a monthly basis to include: (I) Total number of reported Service Interruptions; (2) Date and time of all reported Service Interruptions; 48 MASTER CABLE SERVICES REGULATORY ORDINANCE (3) Total hours that the System was out-of-Service as related to planned upgrades, maintenance or Charmel line-up changes performed by a Grantee; and (4) Estimated number of Subscribers affected by each incident. In addition to the above, the City may request that Service Interruption Reports contain graph(s) that depict a Grantee's performance with respect to the items above for up to a three (3) year period prior to the date the report was requested. B. Results of any FCC required technical or performance testing on the System. 7.16 City Monitoring. In addition to free outlets, free Cable Service or Services otherwise required by the Franchise, Grantee shall provide one Service outlet (which shall be at the Cable Administrator's office at City Hall, unless otherwise specified by City) that shall receive without charge all basic and expanded basic Cable programming provided by Grantee. Such Service shall be provided in such a manner that the City may monitor the programming and use of the Cable System for compliance with the Franchise Agreement, this Ordinance, FCC technical standards, and applicable State and federal law. The Services provided pursuant to this requirement shall be in a secure office location, and not in a location open to public viewing. ARTICLE 8. CONSTRUCTION STANDARDS 8.1 Right-of-Way Construction. Prior to commencing any construction in the City, a Grantee must obtain all necessary permits and licenses required of Persons working in the Right-of-Way by federal, state 49 MASTER CABLE SERVICES REGULATORY ORDINANCE and city laws, ordinances and rules, and pay all generally applicable fees. Further, a Grantee shall comply with all applicable laws, ordinances, rules, and standards relating to the construction, operation and maintenance of a Cable Television System. B. All lines, equipment, and connections in, over, under, and upon the Right-of-Way and private property within the City, wherever situated or located, shall at all times be kept and maintained in a safe and suitable condition and in good order and repair. 8.2 Compliance with Laws. At a minimum, and without limitation, a Grantee shall adhere to all building, electrical and zoning codes currently or hereafter in force in the City. The construction, installation, and maintenance of the Cable System shall be effectuated by Grantee in a manner that is consistent with the laws, ordinances and construction standards of the State of Texas, the Occupational Safety and Health Administration, the National Electrical Safety Code, National Electrical Code and the FCC, to the extent applicable, as well as all other applicable laws, rules, regulations and ordinances that are generally applicable and promulgated pursuant to the City's lawful police power. All open connections on splitters, couplers and other devices shall be properly terminated. 8.3 Minimum Interference. All of Grantee's construction, installation, operation, repair and maintenance, and the arrangement of its lines, cables and other appurtenances, on both public and private property, shall be conducted in such a marmer as to cause minimum interference with the rights and reasonable convenience of the public and any property owners that may be affected. In the event of any such interference, the City may require the removal of Grantee's lines, cables and appurtenances from the Public Rights-of-Way in question, at 50 MASTER CABLE SERVICES REGULATORY ORDINANCE the sole expense of the Grantee, provided however, if the City compensates another Person for such purposes then Grantee shall be similarly compensated, 8.4 Repair of Property. Grantee shall promptly repair and restore any City or priyate property which may be damaged as a result of the construction, installation, operation, repair or maintenance of the Cable System. Any such property damaged or destroyed shall be promptly repaired and restored by Grantee, at Grantee's sole cost and expense and to the reasonable satisfaction of the City, to its condition prior to being damaged or shall be replaced by Grantee with equivalent property. 8.5 Erection of Poles. Grantee shall not erect, for any reason, any pole on or along any Public Rights-of-Way in an existing aerial utility system without the advance written approval of the City. If additional poles in an existing aerial route are required, Grantee shall negotiate, as needed, with the utility for the installation of the needed poles. Any such addition shall require the advance written approval of the City. Grantee shall negotiate the lease of pole space and facilities from the existing pole owners for all aerial construction, under mutually acceptable terms and conditions. The City shall assist in arriving at an equitable pole rental agreement. 8.6 Reservations of Street Rights. Nothing in this Ordinance shall be construed to preyent the City from constructing storm or sanitary sewers, grading, paving, repairing or altering any Public Rights-of-Way, or laying down, repairing or removing water mains or gas lines, traffic signal control systems, City fiber plant, or constructing or establishing any public utility, Service or 51 MASTER CABLE SERVICES REGULATORY ORDINANCE other public work that the City may operate or undertake now or in the future. All such work shall be done, insofar as practicable, in such marmer as not to obstruct, injure or prevent the free use and operation of poles, wires, conduits, conductors, pipes or appurtenances of Grantee. If City in its sole discretion shall determine that Grantee will interfere with the construction or repair of any Public Right-of-Way or public improvement, whether it be construction, repair or removal of a sewer or water main, the improvement of any Public Way or any other public improvement, then all such property of Grantee shall be removed or replaced, or temporarily disconnected, in such manner as shall be directed by the City so that the same shall not interfere with the public works of such City. Such removal or replacement shall be at the expense of Grantee; provided, however, that nothing in this Ordinance shall preclude Grantee from seeking reimbursement for removal or replacement costs from any public funds generally available to Rights-of-Way users for the reimbursement of such costs, provided, however, if the City compensates another Person for such purposes then Grantee shall be similarly compensated. 8.7 Underground Installation. In those areas within the City where Cable System facilities are currently placed underground, all Cable System facilities shall remain or be placed underground. In areas where either telephone or electric utility facilities are above ground at the time of installation, Grantee may install its Cable System facilities above ground, provided that at such time as both electric and telephone utility facilities are placed underground, Grantee shall likewise place its Cable System facilities without cost to the City or if City requires undergrounding in the future pursuant to a separate ordinance, provided however, if the 52 MASTER CABLE SERVICES REGULATORY ORDINANCE City compensates another Person for such purposes then Grantee shall be similarly compensated. Nothing contained in this Section shall require a Grantee to construct, operate and maintain underground any ground-mounted appurtenances, except that Grantee shall take steps to minimize the number and visual impact of such facilities. 8.8 Conduit. MASTER CABLE SERVICES REGULATORY ORDINANCE Cable System equipment. Except in emergency situations, Grantee shall not remove, trim or cut such trees from any public streets without first providing reasonable notice to the City of its intention to do so, such notice to be delivered not less than ten (10) days in advance. The Grantee shall compensate the City or any private owners of such trees for any damage proximately caused by Grantee's negligent conduct. 8.10 Moving Facilities. Grantee, on the request ofthe City, or any Person holding a building permit issued by the City, or any permit issued by an appropriate State agency, shall temporarily move its wires, cables, poles or other Cable System facilities to permit the moving of large objects, vehicles, buildings or other structures. The expense of such temporary moves shall be paid to Grantee by the Person requesting the same and Grantee shall have the authority to require such payment in advance. Grantee shall be given not less than thirty (30) days advance notice to arrange for such temporary moves. 8.11 Work Performed by Others. A. A Grantee shall make available to the City upon reasonable request the company names and businesses addresses of any Person, other than the Grantee, which performs Services pursuant to a Franchise Agreement; provided, however, that all provisions ofthis Ordinance remain the responsibility of Grantee. B. To the extent applicable, all provisions of this Ordinance shall apply to any subcontractors or others performing any work or Services pursuant to the provisions of a Franchise Agreement on behalf of a Grantee. 54 MASTER CABLE SERVICES REGULATORY ORDINANCE 8.12 Duty to Grantee. Nothing contained in this Ordinance shall relieve any person from liability arising out of the failure to exercise reasonable care to avoid injuring Grantee's facilities while performing any work connected with grading, regrading or changing the line of any Public Way or with the construction or reconstruction of any sewer or water system or utility system. ARTICLE 9. OPERATION AND MAINTENANCE 9.1 Open Books and Records. Each Grantee shall cooperate with the Grantor with respect to Grantor's administration of this Ordinance and its applicable Franchise Agreement. Grantor shall have the right to inspect, at any time during Normal Business Hours all books, records, maps, plans, income tax returns, financial statements, Service complaint logs, performance test results, and other existing like materials of a Grantee that relate to the operation of a Grantee's System and that are reasonably necessary to Grantor's enforcement of this Ordinance and/or a Franchise Agreement. The Grantee shall not be required to maintain any books or records for Franchise compliance purposes longer than five (5) years. Upon request, the Grantor will treat designated information disclosed by a Grantee as confidential to the extent permissible under state and federal law. 9.2 Communications with Regulatorv Agencies. A Grantee shall provide the City with timely notice of all system specific petitions, applications, communications, and reports submitted by each Grantee to the FCC, Securities and Exchange Commission, or any other federal or State regulatory 55 MASTER CABLE SERVICES REGULATORY ORDINANCE commission or agency having jurisdiction in respect to any matters directly affecting System operations, and shall make copies of such filings and pleadings available to Grantor upon request within thirty (30) days of the filing. Copies of responses from the above regulatory agencies to each Grantee likewise shall be made available promptly to Grantor, upon request. 9.3 Annual Reports. A. Upon request, each Grantee shall make available to Grantor, at the end of each of the applicable Grantee's fiscal years during the term of a Franchise Agreement, the following: (I) A revenue statement certified by an officer or certified public accountant of the Grantee showing, in such detail, the Gross Revenues of the Grantee for the preceding fiscal year; (2) A current list of names and addresses of each officer and director and other management personnel of the Grantee; (3) A copy of all documents that relate to the Grantee's System that were filed with any federal, State, or local agencies during the preceding fiscal year and that were not previously filed with Grantor; (4) A statement of the Grantee's current billing practices and charges; (5) A copy of the Grantee's current Subscriber Service contract; and (6) A copy of Annual Reports, if any, to stockholders for operating company and parent company. B. Grantor and its agents and representatives may and shall have the authority to arrange for and conduct an audit of the books and records necessary for the 56 MASTER CABLE SERVICES REGULATORY ORDINANCE enforcement of the Franchise Agreement of any Grantee. A Grantee shall first be given twenty (20) calendar days notice of the audit, the description of and purpose for the audit, and a description, to the best of Grantor's ability, of the books, records, and documents that Grantor wants to review. 9.4 Additional Reports. Upon request, each Grantee shall prepare and furnish to Grantor such additional reports with respect to its operations, affairs, transactions, or property, where reasonably necessary to ascertain the Grantee's compliance with the Franchise. 9.5 Service Contract and Subscriber Information. A. Each Grantee shall have authority to promulgate such rules, regulations, terms, and conditions governing the conduct of its business as shall be reasonably necessary to enable the Grantee to exercise its rights and perform its obligations under this Ordinance and any Franchise Agreement and to assure uninterrupted Service to all of its Subscribers; provided such rules, regulations, terms, and conditions shall not be in conflict with the provisions of this Ordinance, a Franchise Agreement, federal, State and/or City law, or any applicable rules and regulations. B. Every Grantee shall submit to Grantor upon request any Subscriber contract form that it utilizes. If no written contract exists, a Grantee shall file with the City upon request a document completely and concisely stating the terms of the residential Subscriber contract offered, specifically including the length of the Subscriber contract. The length and terms of any Subscriber contract shall be available for public inspection during Normal Business Hours. 57 MASTER CABLE SERVICES REGULATORY ORDINANCE C. The term of an end-user residential Subscriber contract for Service shall not be for more than twelve (12) months duration unless after twelve (12) months the contract may be terminated at the Subscriber's option with no penalty to Subscriber. Nothing in this paragraph shall prohibit a Grantee from entering into Subscriber contracts by reason of a line extension policy for a term that is longer than twelve (12) months in duration. ARTICLE ro. GENERAL FINANCIAL AND INSURANCE PROVISIONS 10.1 Franchise Fee. A. As compensation for a Franchise, and in consideration of permission to use the Rights-of- Way of the City for the construction, operation and maintenance, of a Cable System within the City, and to defray the costs of regulation, each Grantee shall pay to Grantor an annual amount equal to five percent (5%) of the Grantee's Gross Revenues. To the extent permissible under applicable law, such Franchise Fee shall be considered separate and distinct from any Municipal Telecommunications Consent Fees assessed against a Grantee for its use of the City's Rights-of-Way for the provision of telecommunications Services pursuant to the terms of Title 9, Chapter 283 of the Texas Local Government Code, or other applicable state law. The payment ofthe Municipal Consent Fee shall be on a non-discriminatory basis as between telecommunications providers. B. Payments due Grantor under this section shall be computed quarterly, for the preceding quarter. Each quarter payment shall be due and payable no later than forty-five (45) days after the end of the preceding quarter. Unless the Franchise 58 MASTER CABLE SERVICES REGULATORY ORDINANCE Agreement provides otherwise, at the request of the City, Grantee shall electronically deposit payments into a financial institution designated by the City. Any associated charges for electronic transfer may be credited against the Franchise Fee. Verification of this deposit shall be provided to the City Treasurer. Each payment shall be accompanied by a brief report by a Grantee showing the basis for the computation and a "Franchise Fee Worksheet" listing all of the sources of revenues attributable to the operation of Grantee's System. A Grantee that is subject to a Municipal Telecommunications Consent Fee shall maintain separate accounts and records with respect to the calculation and payment of such fees. C. No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim Grantor may have for further sums payable under the provisions of this Ordinance or a Franchise Agreement. All amounts paid shall be subject to audit and recomputation by Grantor or its designee at any time during any calendar year (but no more than once per calendar year) upon twenty (20) calendar days notice, including information on the specific documents requested to be reviewed. 10.2 Security Fund. Each Grantee shall maintain a security fund with the City to ensure compliance with this Ordinance and the applicable Franchise Agreement, in an amount and in a marmer as set forth in the Grantee's Franchise Agreement. 59 MASTER CABLE SERVICES REGULATORY ORDINANCE 10.3 Penalties Procedure. A. Whenever Grantor has reason to believe that a Grantee has violated any provision of a Franchise Agreement or this Ordinance, Grantor shall first notifY the Grantee of the violation and demand correction within a reasonable time, which shall not be less than twenty (20) days in the case of the failure of a Grantee to pay any sum or other amount due the Grantor under a Franchise Agreement, and thirty (30) days in all other cases. If a Grantee fails to correct the violation within the time prescribed, or if a Grantee is unable to correct the violation and fails to commence corrective action within the time prescribed and to diligently remedy such violation thereafter, the Grantee shall then be given written notice of not less than twenty (20) days of a public hearing to be held before the Council. Said notice shall indicate with reasonable specificity the violation alleged to have occurred. B. At the public hearing, the Council shall hear and consider all relevant evidence and thereafter render findings and a decision based upon the evidence. Any such hearing must, at a minimum, provide the Grantee full due process. = C. In the event the City finds that a Grantee has corrected the violation or promptly commenced correction of such violation after notice thereof from Grantor and is diligently proceeding to fully remedy the violation, or that no violation has occurred, the proceedings shall terminate and no penalty or other sanction shall be imposed. D. In the event the City finds that a violation exists and that a Grantee has not corrected the same in a satisfactory marmer or did not promptly commence and 60 MASTER CABLE SERVICES REGULATORY ORDINANCE diligently proceed to correct the violation, the City may impose liquidated damages from the security fund, as set out in the Franchise Agreement. E. If Grantor elects to assess liquidated damages, then such election shall constitute Grantor's exclusive remedy for a period of sixty (60) days. Thereafter, if a Grantee remains in non-compliance, the Grantor may pursue any other available remedy. F. In the event that a Franchise is cancelled or terminated by reason of the default of a Grantee, the security fund deposited pursuant to a Franchise Agreement shall . . MASTER CABLE SERVICES REGULA TORY ORDINANCE required to indemnify the City III a manner as set forth III the Grantee's Franchise Agreement. ARTICLE II. REVOCATION 11.1 Grounds for Revocation. In addition to any rights in this Ordinance or a Franchise Agreement, Grantor reserves the right to revoke the Franchise, and all rights and privileges pertaining thereto, in the event that: A. A Grantee substantially violates any material provision of this Ordinance or a Franchise Agreement; B. A Grantee attempts to evade any of the provisions of this Ordinance or a Franchise Agreement; C. A Grantee practices an act of fraud or deceit upon the Grantor; or D. A Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged bankrupt. 11.2 Procedure. A. Whenever Grantor has reason to believe that there may be grounds for revocation of a Franchise, Grantor shall first notify the Grantee in writing of its basis for believing grounds for revocation exist. Such notice shall indicate with reasonable specificity the grounds for revocation that are believed to exist so that the Grantee may have a reasonable opportunity to cure or otherwise address the grounds. If a Grantee fails to adequately cure or address the purported grounds for revocation within thirty (30) days of such notice, then the Grantor may, upon thirty (30) days 62 MASTER CABLE SERVICES REGULATORY ORDINANCE written notice to the Grantee, commence a public administrative hearing to determine whether there exists ground for revocation. B. The administrative hearing shall be conducted so as to protect the full due process rights of the parties and provide for, at a minimum, the right to have counsel, the right to call and cross examine witnesses, if requested the right to a full transcript of the proceedings, and the right to have the matter heard before a mutually agreed upon third party hearing officer. C. After the close of the hearing, Grantor or the designated hearing officer shall issue a written decision based on the record of the proceedings, stating with specificity the findings and reasons supporting the decision. D. Upon revocation, a Grantee shall have a period of sixty (60) days subsequent to the date of the formal adoption of a revocation of the Franchise by the City within which to file an appeal with a court of competent jurisdiction. E. During the appeal period, the Franchise shall remain in full force and effect. ARTICLE 12. FORECLOSURE. RECEIVERSHIP AND ABANDONMENT 12.1 Foreclosure. Upon the foreclosure or other judicial sale of all or a part of a System, or upon the termination of any lease covering all or part of a System, a Grantee shall notifY Grantor of such fact and such notification shall be treated as a notification that a change in control of the Grantee has taken place, and the provisions of this Ordinance governing the 63 MASTER CABLE SERVICES REGULATORY ORDINANCE consent to transfer or change in ownership shall apply without regard to how such transfer or change in ownership occurred. 12.2 Receivership. Grantor shall have the right to cancel a Franchise Agreement one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of a Grantee, whether in receivership, reorganization, bankruptcy, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days, or unless: A. Within one hundred twenty (120) days after its election or appointment, the receiver or trustee has fully complied with all the provisions of Grantee's Franchise Agreement and this Ordinance and remedied all defaults thereunder; and B. Such receiver or trustee, within said one hundred twenty (120) days, has executed an agreement, duly approved by a court having jurisdiction, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this Ordinance and the applicable Franchise Agreement. 64 MASTER CABLE SERVICES REGULATORY ORDINANCE ARTICLE 13. PURCHASE OF SYSTEM I 3.1 Purchase By Grantor Upon Termination of Franchise Term or Revocation of Franchise. The Grantor may, in accordance with and to the extent permitted by 47 U.S.C. 9 547, upon the payment of a fair valuation, ascertain, purchase, condemn, acquire, take over, and hold the property and plant of a Grantee, in whole or in part, on the following conditions: (I) Upon revocation of a Franchise, such valuation shall not include any sum attributable to the value of the Franchise itself and plant and property shall be valued according to its book value at the time of revocation, or the System's initial cost less depreciation and salvage. (2) At the expiration of a Franchise Agreement (and nonrenewai}, such valuation shall be at fair market value, exclusive of the value attributed to the Franchise itself. (3) In the event Grantor shall terminate a Franchise pursuant to the provisions of this Ordinance or a Franchise Agreement, and commenced operation of the System, Grantor shall reimburse the Grantee for the fair market value ofthe System. 65 MASTER CABLE SERVICES REGULATORY ORDINANCE ARTICLE 14. SALE OR TRANSFER 14.1 Sale or Transfer of Franchise. A. No Grantee shall sell, transfer, lease, assign, sublet, or dispose of, in whole or in part, an interest in or control of a Franchise or Cable System or any of the rights or privileges granted by a Franchise Agreement, without the prior consent of the Grantor, which consent shall not be unreasonably denied or delayed and may be denied only upon a good faith finding by the Grantor that the proposed transferee lacks the legal, technical, or financial qualifications to consummate the transaction and operate the System so as to perform its obligations under this Ordinance and the applicable Franchise Agreement. This section shall not apply to sales of property or equipment in the normal course of business. Consent from the Grantor shall not be required for a transfer in trust, mortgage, or other instrument of hypothecation, in whole or in part, to secure an indebtedness, or for a pro forma transfer to a corporation, partnership, or other entity controlling, controlled by, or under common control with a Grantee. B. The following events shall be deemed to be a sale, assignment, or other transfer of an interest in or control of a Franchise or Cable System requiring compliance with this section: (i) the sale, assignment, or other transfer of all or a majority of a Grantee's assets; (ii) the sale, assignment, or other transfer of capital stock or partnership, membership, or other equity interests in a Grantee by one or more of its existing shareholders, partners, members, or other equity owners so as to create a new controlling interest in a Grantee; (iii) the issuance of additional capital stock or partnership membership or other equity interest by a Grantee so as to 66 MASTER CABLE SERVICES REGULA TORY ORDINANCE create a new controlling interest in a Grantee; and (iv) a Grantee's agreement to transfer management or operation of the Grantee or the System to an unaffiliated entity. The term "controlling interest" as used herein means majority equity ownership of a Grantee. In the case of any sale or transfer of ownership of an interest in or control of a Franchise or Cable System, the City shall have one hundred twenty (120) days to act upon any request for approval of such sale or transfer that contains or is accompanied by such information as is required in accordance with FCC Regulations and the requirements of this Ordinance and the applicable Franchise Agreement. If the City fails to render a final decision on the request within one hundred twenty (120) days after receipt by the City of all required information, such request shall be deemed granted unless the requesting party and the City agree to an extension of the one hundred twenty (120) day period. D. Grantor reserves any rights it may have to require that a Grantee pay all costs and expenses incurred by Grantor in connection with the sale, assignment, or transfer of a Franchise, including but not limited to the Grantor's costs of reviewing the qualifications of any proposed transferees. ARTICLE 15. RIGHTS OF INDIVIDUALS PROTECTED 15.1 Discriminatorv Practices Prohibited. No Grantee shall deny Service, deny access, or otherwise discriminate against Subscribers, programmers, or general citizens on the basis of race, color, religion, 67 ~ ~,...'---~..__. " MASTER CABLE SERVICES REGULATORY ORDINANCE national origin, sex, disability, or age. Every Grantee shall strictly adhere to the equal employment opportunity requirements of State and federal law. Each Grantee shall comply at all times with all other applicable federal, State, and local laws, and all executive and administrative orders relating to non-discrimination. 15.2 Subscriber Privacy. Grantees shall at all times comply with the federal subscriber privacy requirements codified at 47 U.S.C. 9 551. ARTICLE 16. MISCELLANEOUS PROVISIONS 16.1 Rate Regulation The City reserves the right to regulate rates for Basic Cable Service and any other Services offered over the Cable System, to the extent permitted by federal or State law. Grantee shall be subject to the rate regulation provisions provided for herein, and those of the Federal Communications Commission (FCC) at 47 C.F.R., Part 76.900, Subpart N. The City shall follow the rules relating to cable rate regulation promulgated by the FCC at 47 C.F.R., Part 76.900, Subpart N. 16.2 Rights Reserved to Grantor. A. Upon either the expiration (and denial of any requested renewal) or revocation of a Franchise, Grantor shall have discretion to permit and/or require a Grantee to continue to operate the Cable System for an extended period oftime not to exceed six (6) months from the date of such expiration or revocation. A Grantee shall continue to operate the System under the terms and conditions of this Ordinance and the applicable Franchise Agreement and to provide the regular Subscriber Service and any and all of the Services that may be provided at that time. 68 MASTER CABLE SERVICES REGULATORY ORDINANCE B. The Grantor shall have the right to compel continued operation of the Cable System whether by the Grantee, by a trustee or receiver or by the Grantor, and to ensure that such operation is consistent with public interest as determined by a court of competent jurisdiction. The Grantee may not remove equipment or documents necessary for continued operation of the system. 16.3 Administration of Franchise. The City shall be responsible for the continued administration of this Ordinance and all Franchise Agreements. The City may delegate this authority from time to time. 16.4 Nonenforcement by the City. Grantee shall not be relieved of its obligation to comply with any of the provisions of this Ordinance by reason of any failure of the city to enforce prompt compliance. 16.5 Governing Law and Choice of Forum. Any dispute arising with respect to this Ordinance or a Franchise Agreement granted pursuant to it, shall be subject to review by the state and federal courts sitting in Nueces County, Texas. 16.6 Severability. If any material Section of this Ordinance or a Franchise Agreement adopted pursuant to it is held by a governmental authority of competent jurisdiction, to be invalid or unlawful as conflicting with applicable laws now or hereafter in effect, or is held by a court or competent governmental authority to be modified in any way in order to conform to the requirements of any such applicable laws, such provision shall be considered a separate, distinct, and independent part of this Ordinance, and, to the extent possible, such holding shall not affect the validity and enforceability of all other provisions hereof. 69 MASTER CABLE SERVICES REGULATORY ORDINANCE 16.7 Publication of Notices. All public notices or ordinances required to be published by Grantor under this Ordinance or any Franchise Agreement shall be published in the official newspaper of the City. Each Grantee shall pay the costs for publication of its Franchise Agreement and any amendments thereto, as such publication is required or authorized by law. 16.8 Repeal of Section 2-184 and amendment of Section 2-183 of the City Code. Section 2-184 of the City Code of Ordinances is hereby repealed. Section 2-183 (a) of the City Code of Ordinances is amended to strike "religious channel access" in the first sentence. The first sentence of Section 2-183 (a) will read: "One access user council may be established for governmental channel access, public higher educational channel access, other public education charmel access, and each public access channel, respectively, by application to the cable communications commission chairperson and the city secretary and certification by the cable communications commission." Section 2-183 (c) (4) is hereby deleted. The last sentence of Section 2-183 (c) (5) is amended to read: "Notwithstanding any other provision of this section 2-183, representatives of franchised cable operators may be members of a public access council." 16.9 Codification of the Master Cable Regulatory Services Ordinance This Master Cable Services Regulatory Ordinance as amended shall be codified into the City Code of Ordinances. 70 .-..,--....------. --,--" .'.-.. "~_ _~_,_.._____ ._w.u_ ._. -,."......_'-'".<-~._~ ~,...- ._-,- ,'.- MASTER CABLE SERVICES REGULATORY ORDINANCE EXHIBIT A RULES AND PROCEDURES FOR PUBLIC ACCESS CABLECASTING SUMMARY OF ROLES / RESPONSIBILITIES / PROCESS Public Access Users: Individuals produce programming for cablecasting following specific participation rules and adhering to production standards. . To obtain a regular weekly or monthly timeslot, Users participate in bi-armual Public Access Timeslot Lottery. These are called Series Users. . For random placement of non-recurring show (i.e., a show that is not regularly produced), Users submit tapes, which are inserted in available timeslots by the PAUG. These are called Occasional Users. Public Access User Group (PAUG): Users organize themselves according to by-laws, electing among themselves officers and a Board of Directors. . The PAUG conducts a bi-armual Public Access Timeslot Lottery for each Public Access charmel according to the rules and procedures, and uses those results to develop a Public Access Schedule for each charmel. . The PAUG receives and schedules programming submitted by Occasional Users. . The PAUG collects and makes available for pickup by Cable Operators the schedules and tapes for each charmel. . The PAUG administers the Rules and Procedures; Users may appeal decisions of the P AUG Board to the Cable Commission and, after that, to City Council. . The PAUG may require Series Users to pay nominal membership dues to offset minor operational expenses. There may be a separate PAUG for each public access charmel. Cable Operators: Franchised cable operators each proyide plug-and-play of Public Access Programming according to the schedule provided by the PAUG. Cable Commission: The Cable Commission mediates any disputes brought to it by the PAUG. 71 MASTER CABLE SERVICES REGULA TORY ORDINANCE RULES AND PROCEDURES FOR PUBLIC ACCESS CABLECASTING Charmel space on Public Access Charmels is available free of charge to any adult resident of the City of Corpus Christi in accordance with the following Rules and Procedures, as adopted by the City Council of the City of Corpus Christi. Submitted program tapes will be cablecast by all franchised cable operators as provided in their respective franchises. Requests for live feeds may be made in accordance with rules adopted by the Cable Communications Commission, with the consent of the cable operators. These rules may be amended by City Council following recommendation from the Cable Commission or Franchised Cable Operators in the City of Corpus Christi. 91 RULES FOR PARTICIPATION Users must complete and sign a Programming Contract. In signing the Programming Contract, the user warrants that the following rules will be observed: . All programs must be produced by a User as defined in Section 4. . All Programs shall not be commercial as defined in Section 4. . No program shall be transmitted that requests contributions unless the solicitation is on behalf of an organization that has received tax exempt status under 501 (c)(3) of the Internal Revenue Code. Maximum time to request contributions in a program is five minutes. . No program shall be transmitted that contains copyrighted information for which proper clearance or authorization has not been obtained. . No program shall be transmitted which contains obscene or indecent material. . All programs must include proper Program Identification as defined in Section 4. . All Users must provide two copies of each program on separate tapes, labeled III accordance with the instructions in Section 2. Except as otherwise permitted by applicable law, neither the Access User Group nor the cable operators will restrict the content of any program. 9 2 TECHNICAL STANDARDS AND PRODUCTION REQUIREMENTS Programs submitted for cablecast must conform to the technical standards and production requirements established for cablecast by the FCC and City of Corpus Christi Public Access Rules. The programs shall not cause the Cable Operator to be out of compliance with any applicable FCC Technical Standards. QUALITY: Programs must deliver, in good quality, clear audio and video throughout the entire length of the program. 72 MASTER CABLE SERVICES REGULATORY ORDINANCE FORMAT: a. Users must transfer all other formats (including y," Beta, VHS "C", Super VHS, Reg 8, % U-Matic, and I" tapes) to Yz" VHS (SP speed) tapes, Super VHS tapes, or Consumer DV tape for cablecasting. b. All tapes must be rewound to beginning of tape. c. As new technology changes and formats become more conventional in the consumer markets, additional formats may be added to reflect current market use. The decision to add or delete formats will be made by the Cable Commission based upon a request from an access user group and/or the Cable Operator(s). LABELING: All Users must clearly label tapes on the top of the tape and on the sleeve of the tape box. Each tape must have a label containing the following: a. Name of individual sponsor and telephone number b. Title of the program c. Length of the program d. Date to be played and scheduling number (as determined by Timeslot Lottery). IDENTIFICATION: Only one program may be recorded on a tape. a. There must be either 60 seconds of color bars followed by 10 seconds of black or 60 seconds of black at the beginning of your program. b. There must be 60 seconds of black at the end of your program. c. Programs must include the Program Identification as defined in Section 4. LENGTH: a. All one-hour programs must be 59 minutes in length b. All half-hour programs must be 29 minutes in length. c. Occasional programming beyond 59 minutes (such as high school sporting events) may be shown pursuant to rules established by the Cable Communications Commission with consent of the cable operators. DEADLINE: The access user groups will establish deadlines for pickup and delivery of tapes, in cooperation with the cable operators. 9 3 HOW PROGRAMS ARE SCHEDULED Public Access For Series Users Series Programs are given a regular, weekly slot. Time slots are awarded during the semi-annual Timeslot Lottery. Conflicts on requests for time slots will be submitted to the Cable Commission for arbitration. 73 MASTER CABLE SERVICES REGULATORY ORDINANCE Each User may have only one series, not to exceed one hour per week, except as provided above in 92, Length. Pursuant to rules established by the access user group, a User may substitute another program in place of the repeat program. No later than two weeks prior to each bi-armual Timeslot Lottery, each Series User must submit a completed Public Access Cablecasting Application to their respective Access User Group, and provide current copies to cable operators, including the following items: a. User's name b. Program Name c. Length of the program d. Frequency (weekly or monthly) e. Access Charmel (10 or 18) (NOTE: A Series Program must select one charmel for cablecasting of both first-run and Repeat showings. Programs carmot be run on both charmels. ) f. Address and telephone number Users will attend the Timeslot Lottery as noted in a and b below. The Cable Communications Commission will schedule the lottery for the initial schedule for channel 10. Thereafter, lotteries will be conducted as follows: a. The spring lottery is conducted on the fourth Thursday in April at 4:30 p.m. with the new time slots actually beginning on the first Sunday in June. b" The fall lottery is conducted on the fourth Thursday in October at 4:30 p.m. with the new time slots actually beginning on the first Sunday in December. The Public Access Time Schedule will be broken into 30-minute intervals. Each User will draw a selection number randomly, with the lowest number having the first choice oftime slots and continuing until all numbers are issued. The selection numbers will be determined by random selection Based on selection numbers, each User, one-by-one, selects an available timeslot. After all Users select timeslots for their first -run shows, those requesting a repeat showing will then select their timeslots in same order as the initial timeslots were selected, not to exceed one repeat per show. One lottery will be executed for Charmel 10 by the Charmel 10 access user group and one lottery executed for Charmell8 by the Charmel 18 access user group. No programs will be scheduled during Holidays. Public Access For Occasional Users 74 MASTER CABLE SERVICES REGULATORY ORDINANCE Single timeslots of lengths as noted above in 92, Length, will be available for occasional users on a first-come, first-served basis. Occasional Users must complete a Public Access Cablecasting application no later than two weeks prior to the desired cablecasting date and comply with all rules set forth herein. First come, first served is determined upon receipt by the Access User Group Secretary, In addition to a first-run showing, a program may be repeated as charmel space allows, not to exceed one repeat per show. No programs will be scheduled during Holidays. Forfeit of Time slot If a Series User fails to supply tapes for two consecutive weeks for a weekly program (or two consecutive months for a monthly program), the User forfeits the Timeslot until the next lottery. 9 4 DEFINED TERMS Access User Group - as set forth in the City Code of Ordinances, Section 2-183, membership of the access user group may be composed of any individuals who are residents of the City as well as representatives of community, public interest, or neighborhood, notwithstanding any other provision, representatives of the cable operator may be members of the access user group. Access user groups are organized separately and independently from the city and are not boards, commissions, committees or any other subdivision of the city. One Access User Group may be established for each Public Access Charmel. Each user is entitled to vote on all matters pertaining to establishment of access user group bylaws and election of officers, Commercial Programming - any programming which is cablecast for remuneration of any kind, whether directly or indirectly, or programming which includes, in whole or in part, content whether audio, video or text intended, directly or indirectly to promote any service, or product; or includes commercial advertising of any kind; or contains lottery or sweepstakes information. The Cable Communications Commission has established guidelines concerning the advertisement of commercial products or services in an access program. Holidays - Martin Luther King, Jr. Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, Friday after Thanksgiving Day, Christmas, and New Year's Day. Program Identification - The tag at the beginning and end of the program must bear the User name, and title of program as it appears on the User Application and the production date. The tag must appear for at least ten (10) seconds, in the audio or video at the beginning and end of each program. 75 MASTER CABLE SERVICES REGULATORY ORDINANCE Public Access Charmel (sometimes herein "Charmel") - This is the cable television channel or charmels on which public access programs are cablecast, currently Channels 10 and 18. Public Access Time Allocated Schedule - The block of time slots allocated to each Public Access Charmel that are available and are allocated by lottery during the Semi-annual Timeslot Renewal Period. The block oftime will be determined by each P AUG by calculating the number of users and programming hours for all shows including repeats. The intent is to develop a block on time slots that provide for consecutive programming, without gaps in the programming schedule. Repeat Program - A program which was previously aired on any Public Access Channel. Semi-annual Timeslot Renewal Period - A period beginning April and October of each year, during which all who wish to request a Series for the upcoming six months must submit an application. Series - A locally produced Public Access show from a single User. A series can be either weekly or monthly. User - Any adult resident of the City who, upon having paid any fees required by the access user group and having executed a Program Contract, produces locally non-commercial programs for the Public Access Charmels. Proof of eligibility must include a local street residence address and a local contact telephone number along with valid identification (such as a driver's license). & 5 AMENDMENTS TO RULES AND PROCEDURES FOR PUBLIC ACCESS CABLECASTING These rules may be amended by City Council following recommendation from the Cable Commission or franchised Cable Operators in the City. The City shall give any Cable Operator sixty (60) days written notice of any proposed amendment to the Rules and Procedures for Public Access Cablecasting. In the event that a Cable Operator objects in writing, the City and the Cable Operator shall thereafter meet and negotiate an amendment reasonably acceptable to all parties. In no event shall any amendment imposing greater obligations or restricting the rights of any Cable Operator become effective without the written consent of that Cable Operator. & 6 VIOLATIONS OF RULES. No program will be permitted to air over the Public Access Charmels is a User or program violates one or more of the rules identified in Section I. The Charmel 10 Access User Group will receive and investigate complaints concerning violations of the above rules on CharmellO. The Charmel 18 Access User Group will receive and investigate complaints concerning violations of the above rules on Charmel18. The access user group will inform the User who produced the program that is the subject ofthe complaint of the complaining party's name and contact information. 76 MASTER CABLE SERVICES REGULATORY ORDINANCE If any of the above rules have been violated, the access user group will mail written notice of the violation to the User. The notification letter shall be sent to both the individual user and the group, organization or entity which an entity purports to represent, via certified mail, return receipt requested, to the address provided in the application. The User may appeal the decision of the access user group to the Cable Communications Commission by physically delivering to the City Secretary's Office a written notice of appeal on or before eight (8) calendar days from the date the notification letter was mailed. The Cable Communications Commission shall hold the hearing for appeal within fourteen (14) calendar days from receipt by the City Secretary's Office of the notice of appeal. The appellant shall have at least three (3) calendar days' notice of the hearing. The access user group, the city, and the appellant may present evidence. The commission shall promptly render its decision. Appeals of commission decision may be made to the City Council in accordance with the procedures specified in the City Charter. If a second adjudicated violation of the above rules occurs within twelve (12) months after the first adjudicated violation, then the user will be ineligible to use the public access channels for thirty (30) days. If the third adjudicated violation of the above rules occurs within twelve (12) months after the first adjudicated violation, then the User shall be ineligible to use the public access charmels for one year. Periods of ineligibility to use the public access charmels shall commence and removal of a program from the public access charmel shall occur after the later of (a) the last day on which a user may timely commence an appeal of a decision specified in a notification letter; or (b) the date an appeal is concluded. A program finally determined to be in violation carmot be transmitted again until edited to remove the violation. Neither multiple cablecasts of a single program nor multiple violations of these rules in a single program shall form the basis for more than one adjudicated violation of the above rules. 77 .. ,,~-_.-