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80-014e - Cable TV Heritage CableVision, Reso. 7986RESOLUTION NO. 7986 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING EXECUTION OF AGRREEN'!ENT BETWEEN HERITAGE CABLEVISION AND THE CITY OF CUPERTINO FOR RENEWAL OF FRANCHISE WH12EAS, an agreement between the City of Cupertino and Heritage Cablevision, outlining the terms and conditions for the renewal of the franchise authorizing Heritage Cablevision to operate a cable system in that portion of Cupertino where it presently provides cable television service has been presented to the City Council; and said agreement having been approved by the City Manager and the City Attorney; NOW, THEREFORE, BE IT RESOLVED, that the Mayor and the City Clerk are hereby authorized to execute the agreement herein referred to in behalf of the City of Cupertino. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 20th day of November 1989 by the following vote: vote Members of the City Council AYES: Goldman, Koppel, Sorensen, Szabo, Rogers NOES: None ABSENT: None ABSTAIN: None ATTEST: /s/ Dorothy Cornelius City Clerk /s/ Barbara A. Rogers Mayor, City of Cupertino THIS IS TO CERTIFY 'THAT THE WITHIN INSTRUMENT ISATRUE AND CORRECTCOPY OF THE ORIGINAL ON FILE IN THIS OFFICE. ATTEST CITY DFCUF4RTINOCITYI-C K ❑F THE oY [ORDINANCE NO. 1 FRANCHISE AGREEMENT BETWEEN THE CITY OF CUPERTINO AND HERITAGE CABLEVISION: The City of Cupertino, hereinafter referred to as the "Franchisor," and Heritage Cablevision, hereinafter referred to as the "Franchisee," hereby agree as follows: DLOTTTT e. A. Franchisor is a municipal corporation existing pursuant to the laws of the State of California, and located in Santa Clara County, California. B. Franchisee is a corporation duly organized and existing pursuant to the laws of the State of Delaware, and doing business as Heritage Cablevision. Pursuant to the terms of Cupertino Ordinance No. 934 (June 1979), which incorporated the terms of San Jose City Ordinance No. 12964 and No. 12800, Franchisee presently operates a cable system -- as that phrase is used in 47 U.S.C. §522(b) [Cable Communications Policy Act of 1984, §602(b)] -- in the City of Cupertino. C. Franchisor presently has in effect Chapter 6.28 of the Cupertino Municipal Code which governs the Franchising of cable systems within the City of Cupertino. Section 6.28.010(H) -1- 0310013 of Chapter 6.28 describes cable television systems somewhat dif- ferently than 47 U.S.C. §522(6), and uses the phrase "CATV Systems." The parties understand and agree that the phrase "cable system" in this agreement shall include "CATV System" as that phrase is used in Chapter 6.28. D. Franchisee has requested renewal of the Franchise authorizing it to operate a cable system in that portion of Cupertino where it presently provides cable television service. FOLLOWS: NOW, THEREFORE, FRANCHISOR AND FRANCHISEE AGREE AS SECTION 1: FRANCHISE RENEWED: Franchisor hereby renews Franchisee's non-exclusive Franchise to construct, operate, and maintain a cable system within that portion of City of Cupertino, described more fully in Exhibit "A" attached hereto, in accordance with Chapter 6.28 of the Cupertino Municipal Code (hereinafter Chapter 6.28), except as the provisions of said Chapter 6.28 may be modified or excepted herein. SECTION 2: TERM OF FRANCHISE: Unless terminated pursuant to the provisions of Chapter 6.28 as modified herein, the term of the Franchise granted hereby shall be for a period of 15 years. The 15 year term of the -2- 0310013 renewed Franchise shall commence upon the filing of the Franchisee's written acceptance of the renewed Franchise. SECTION 3: FRANCHISE FEE: A. Franchisee shall annually pay to the City of Cupertino during the term of this Franchise, as a Franchise fee, a sum equal to five percent (50) of Franchisee's gross revenues. Said payment shall be in lieu of any business license tax as required by Chapter 5 of the Cupertino Municipal Code. The franchise fee shall be paid to franchisor by delivery to the Cupertino Director of Finance. Franchise fee payments shall be made quarterly. Within 30 days after the end of each quarter of each calendar year, the franchisee shall pay to the franchisor the franchise fee for the immediately preceding quarter year. The franchise fee shall be accompanied by a financial statement prepared by a certified public accountant showing, in detail, the gross revenues of the franchisee, as defined herein. B. For the purpose of this section, "gross revenues" shall mean any and all compensation in any form, directly or indirectly recovered by Franchisee from any subscriber for cable television service in the City of Cupertino. For the purpose of calculating Franchisee's franchise fee payments, "gross reve- nues," shall not include revenue received from installation fees, line extension fees, advertising, delinquent service charges, returned check charges, or any taxes or fees on services provided -3- BU1111m] by Franchisee which are imposed by a federal, state, or other governmental unit. C. The City shall have the right to inspect or audit the Franchisee's fiscal records. If any independent audit of the Franchisee's records directed by the City shows a Franchise fee error in excess of five percent in the City's favor, the Franchisee shall assume all reasonable costs for the audit. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further additional sums payable under this section for the performance of any other obligation hereunder. SECTION 4: NOTICE TO SUBSCRIBER'S OF RATE INCREASES: Franchisee agrees to provide thirty (30) days' written notice to each of its subscribers who are subject to a rate increase imposed by Franchisee. SECTION 5: PUBLIC, EDUCATIONAL AND GOVERNMENT ACCESS [PEG] CHANNELS: As its contribution to and satisfaction of PEG require- ments, Franchisee agrees to undertake the work necessary, and make the expenditures necessary, to make available to Franchisee's Cupertino subscribers, on or prior to October 1, 1990, the signals generated by United Cable Television (or its -4- 0310013 successors) on Channel 30 and Channel 53, on a non -delayed basis, and of a comparable signal quality. SECTION 6: FAITHFUL PERFORMANCE BONDS: A. Faithful Performance Bond: Franchisee shall maintain in full force and effect for the term of the renewed franchise, at the franchisee's sole expense, a corporate surety bond in the amount of $50,000.00, renewable annually, and conditioned upon the faithful performance of the franchisee, and upon the further condition that in the event the franchisee fails to comply with any one or more of the material provisions of this agreement, there shall be recoverable jointly and severally from the principal and surety of such bond any damages or loss suffered by the City as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the franchisee as prescribed hereby which may be in default, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond. The bond shall provide that thirty days' prior written notice of intention not to renew, cancellation, or material change, be given to the City. SECTION 7: INSURANCE AND INDEMNIFICATION REQUIREMENTS: A. The Franchisee shall indemnify and hold harmless the City, its officers and employees from and against any and all claims, demands, actions, suits, and proceedings by others, -5- 0310013 against all liability to others, including but not limited to any liability for damages by reason of or arising out of any viola- tion of proprietary or copyright interests, and against any loss, costs, expense and damages resulting therefrom, including reason- able attorney's fees, arising out of the exercise or enjoyment of its Franchise irrespective of the amount of the comprehensive liability insurance policy required hereunder. B. The Franchisee shall, concurrently with acceptance of a Franchise renewal granted under this chapter, furnish to the City and file with the City Clerk, and at all times during the existence of any Franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a general compre- hensive liability insurance policy, in protection of the City, its officers, boards, commissions, agents and employees in a company approved by the City Manager and a form satisfactory to the City Attorney, protecting the City and all persons against liability for loss or damage for personal injury, death and property damage, occasioned by the operations of Franchisee under such Franchise, with minimum liability limits of three hundred thousand dollars ($300,000) for personal injury or death of any one person and one million dollars ($1,000,000) for personal injury or death of two or more persons in any one occurrence, and two hundred thousand dollars ($200,000) for damage to property resulting from any one occurrence. C. The policies mentioned herein shall name the City, its officers, boards, commissions, agents and employees, as addi- rez 0310013 tionally insured and shall contain a provision that a written notice of cancellation or reduction in coverage of the policy shall be delivered to the City ten days in advance of the effec- tive date thereof; if such insurance is provided by a policy which also covers Franchisee or any other entity or person other than those above named, then such policy shall contain the stan- dard cross -liability endorsement. SECTION 8: MAPS: A. Franchisor and Franchisee agree to utilize large scale street and photogrametric maps provided by the Franchisor as the accepted source of information for: 1. Determining the number of dwelling units within the required Franchise service area; 2. Determining the required service area itself as of the date of the Franchise renewal award; and 3. Determining the areas where other Franchised CATV service is offered by others. Upon development of its system maps, the Franchisee may object to the Franchisor's dwelling unit information and request a change in the dwelling unit count. If the Franchisor and the Franchisee are unable to resolve any dwelling count dif- -7- 0310013 ferences, the City Manager shall arbitrate the matter and his decision shall be final. SECTION 9: TRANSFER OF FRANCHISE: A. This Franchise shall be a privilege held in personal trust by the Franchisee. The Franchise cannot in any event be sold, transferred, leased, assigned, or disposed of, in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation or otherwise, without the prior consent of the City Council, expressed by resolution. B. Any such transfer or assignment shall be made only by an instrument in writing, a duly executed copy of which shall be filed in the Office of the City Clerk within thirty (30) days after any such transfer or assignment. The said consent of the City Council may not be unreasonably withheld; provided, however, that the proposed assignee or transferee must show financial responsibility and must agree to comply with all the provisions of this Agreement, and the documents comprising the Franchise renewal as set forth in Ordinance enacted by the City Council and provided, further, that no such consent shall be required for a transfer in trust, mortgage, or other hypothecation as a whole, to secure an indebtedness. 0310013 SECTION 10: TIME OF THE ESSENCE: Time shall be of the essence of this Franchise. The Franchisee shall not be relieved of its obligation to comply promptly with any of the provisions of this renewed agreement or of Chapter 6.28 of the Cupertino Municipal Code (except as modified or excepted herein) by any failure of the Franchisor to enforce prompt compliance; provided, however, that acts of God, labor strikes, unavailability of materials, and any other events beyond the Franchisee's control shall excuse Franchisee's failure to promptly perform. SECTION 11. FRANCHISE NON-EXCLUSIVE: Neither the granting of this Franchise renewal nor any of the provisions contained herein shall be construed to prevent the Franchisor from granting any identical or similar Franchise to any other person, firm, or corporation within all or any portion of the City of Cupertino. SECTION 12: COMPROMISE OF CLAIMS: On behalf of Franchisor, the City Manager is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge made by Franchisee and arising from the operations of the Franchisee under this agreement for the purpose of entering into a mutually acceptable Settlement Agreement. Any 0310013 such adjustment, settlement, or compromise shall be made in the best interests of the public. SECTION 13: SYSTEM OUTAGE AND SUBSCRIBER COMPLAINT SERVICE; NOTICES TO SUBSCRIBERS: A. Franchisee will maintain a subscriber complaint service operated from Franchisee's main office, and qualified technicians will be permanent members of Franchisee's staff. B. Routine handling of customer service requests will be the responsibility of Franchisee's local staff as follows: 1. A call involving loss of reception on all channels will be dispatched to the field within twenty-four (24) hours via two-way radio. If the loss of reception on all channels affects five (5) or more customers, at any time of the day or night, repairs will be commenced promptly and pursued diligently. Total loss of reception involving less than five (5) customers will be corrected on the same day received, if so requested by subscriber, except if reported after 2:00 p.m., in which case correction may be postponed to the following day. The majority of all outages (total loss of reception on all channels) will be corrected in four (4) to eight (8) hours or less. 2. The majority of calls involving degraded reception or single outage will be handle on the same business -10- 0310013 day if received prior to 2:00 p.m. In all cases, such services calls will be handled no later than the following day. 3. Requests for repairs made after hours or on weekends shall be answered by an answering service or staff. Outage calls affecting five (5) or more subscribers will be referred promptly to the standby technician for resolution in accordance with subparagraph (b) (1) of this paragraph. Calls involving degraded service will be reported by the answering service the next day. The staff will call the customer to schedule service calls in accordance with subparagraph (2) above. 4. Customers shall be notified by Franchisee of Service and Complaint policy at the time of initial installation and at least yearly thereafter. Such notification shall include: Franchisee's telephone number for requesting service, hours and conditions of service, and procedure for registering complaints for unsatisfactory service. C. Franchisee shall maintain a data base or "log," listing date of consumer complaints, identifying the subscriber and describing the nature of the complaint, and when and what action was taken by the Franchisee in response thereto. This log shall be kept at Franchisee's local office for the term of this extension and renewal, and shall be available for inspection by the City Manager or any other duly authorized representative of the City during regular business hours without further notice. In addition, a copy of new entries on the log, if any, shall be -11- 0310013 mailed to the City Manager or the City Manager's designated representative on a monthly basis. D. In the event of service interruption of more than twenty-four (24) consecutive hours, or unresolved service complaint not caused by the subscriber resulting in a degraded signal for more than twenty-four (24) consecutive hours, Franchisee shall, at the request of the subscriber, credit the subscriber's account on a pro rata basis as an offset to the monthly billing charge. Franchisee may, if the Franchisee deems appropriate, credit the subscriber's account for the full period of outages of less than twenty-four (24) hours on a case -by -case basis. The subscriber must allow, within a reasonable time, the service technicians access to the problem if located on the subscriber's property, or forfeit any claim for refund due for service outage. E. Franchisee will not be responsible for problems created by subscribers or for problems caused by subscriber -owned equipment. F. The service standards listed in this section are meant as guidelines and should be adhered to in at least eighty percent (80%) of cases under normal conditions. Neither isolated cases of non-conformance nor failure to meet these standards during extreme conditions shall constitute violations of the terms of this extension and renewal. -12- 0310013 SECTION 14: SIGNAL QUALITY On at least one occasion annually, Franchisee shall test its cable distribution system at one location within Franchisor's city limits for the purpose of verifying the cable system's sig- nal quality and compliance with F.C.C. technical guidelines. Within 60 days of conducting this test, Franchisee shall provide Franchisor with the results of the annual test of the Cupertino portion of Franchisee's system. SECTION 15: NONCOMPLIANCE In the event that Franchisee has failed to comply with any significant provision of this Franchise Renewal, or has, by act or omission, violated any term or condition of any permit issued hereunder, any such Franchise Renewal may be terminated in accordance with the provisions of this section. Prior to such termination, the City must give notice to the Franchisee of any noncompliance, and that such noncompliance must be cured within sixty (60) days, which period may be extended for one additional sixty (60) day period. In the event that said noncompliance is not remedied within the aforesaid cure period, the City shall hold a public hearing at which findings shall be made and said Franchise may be continued, terminated, or continued subject to performance of such conditions as the City Council may provide. Franchisor and Franchisee also retain all rights under the Cable Communications Policy Act of 1984. -13- 0310013 SECTION 16: FILING AND NOTICE PROCEDURES: A. When not otherwise prescribed herein, all matters required to be filed with the Franchisor shall be filed with the City Clerk. Any notice, request, demand, or other communication required or permitted hereunder shall be deemed to be properly given when deposited in the United States mail, postage prepaid, or when deposited with a public telegraph company for transmittal, charges prepaid, addressed: 1. In care of Franchisor to City of Cupertino, City Manager, P. 0. Box 580, Cupertino, California, 95015 or to such other person or address as Franchisor may from time to time furnish to Franchisee. 2. In care of the Franchisee to Heritage Cable - vision, 234 East Gish Road, San Jose, California 95112. The Franchisee may from time to time furnish the Franchisor with the names and addresses of other persons or entities to whom communications should be sent. SECTION 17: SEVERABILITY OF TERMS: The illegality of any particular provision of this agreement shall not affect the other provisions thereof, but the -14- [IIl1II IX agreement shall be construed in all respects as if such invalid provisions were omitted. SECTION 18: PROVISIONS EXCEPTED: Except as specifically provided herein, Franchisee shall be subject to all provisions of the Cupertino Municipal Code, including Chapter 6.28, provided, however, that the following provisions of Chapter 6.28 are excepted, and are not applicable to the Franchisee: §§6.28.030(A), 6.28.045-.100, 6.28.140-.190, 6.28.220-.246, 6.28.247(4), 6.28.260-.270. To the extent that this renewal ordinance conflicts with Chapter 6.28 or other City ordinances, the terms and provisions of this ordinance shall control. Executed on /Z - 1 , 1989. AT T T: OY� ity Clerk CITY OF CUPERTINO By �C' �'• t or, City of C rtino Executed on lJecemlley )S- , 1989. HERITAGE CABLEVISION By Its President & General Manager 0310013 -15- STATE OF CALIFORNIA ) ss. COUNTY On `lfcetNber l , 1989, before me, the undersigned, a Notary Public in and for said State, personally appearedD ,�;` .�G7r��r`Pr, personally known to me (or provided to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within FRANCHISE AGREEMENT BETWEEN THE CITY OF CUPERTINO AND HERITAGE CABLEVISION and acknowledged to me that he executed the same. WITNESS my hand and official seal. Y4� [:NOTARY OFFICIAL SEAL SHERRY A HYDE Notary Public in and for PUBLIC - CALIFORNIA the State of California SANTA CLARA COUNTY MY comm. expires MAY 14, I'll -16- 0310013