ࡱ> ^`YZ[\]#`  bjbj\.\. >D>D4h|h|h2v"sT2d+41111111$5h7P1>ss>>12$>1>1N$M) ǖ1vT9(0)L,2<h2i(7.7`M)7M)4_(<M___11 v___h2>>>>P4ZP4  ORDINANCE CABLE FRANCHISE GRANTING A CABLE SERVICE FRANCHISE BY THE CITY OF HAMPTON, VIRGINIA TO CAVALIER IP, TV, LLC TABLE OF CONTENTS PAGE  TOC \o "1-3" \f \h \z  HYPERLINK \l "_Toc162681904" 1. DEFINITIONS  PAGEREF _Toc162681904 \h 1  HYPERLINK \l "_Toc162681905" (a) Act  PAGEREF _Toc162681905 \h 1  HYPERLINK \l "_Toc162681906" (b) Affiliate  PAGEREF _Toc162681906 \h 1  HYPERLINK \l "_Toc162681907" (c) Applicable Law  PAGEREF _Toc162681907 \h 2  HYPERLINK \l "_Toc162681908" (d) Application  PAGEREF _Toc162681908 \h 2  HYPERLINK \l "_Toc162681909" (e) Basic Service Tier  PAGEREF _Toc162681909 \h 2  HYPERLINK \l "_Toc162681910" (f) Cable Operator  PAGEREF _Toc162681910 \h 2  HYPERLINK \l "_Toc162681911" (g) Cable Service or Service  PAGEREF _Toc162681911 \h 2  HYPERLINK \l "_Toc162681912" (h) Cable System or Cable Television System or System  PAGEREF _Toc162681912 \h 2  HYPERLINK \l "_Toc162681913" (i) Certificated Provider of Telecommunications Services  PAGEREF _Toc162681913 \h 3  HYPERLINK \l "_Toc162681914" (j) City or Locality  PAGEREF _Toc162681914 \h 3  HYPERLINK \l "_Toc162681915" (k) Confidential Information or Confidentiality  PAGEREF _Toc162681915 \h 3  HYPERLINK \l "_Toc162681916" (l) Force Majeure  PAGEREF _Toc162681916 \h 3  HYPERLINK \l "_Toc162681917" (m) Franchise  PAGEREF _Toc162681917 \h 4  HYPERLINK \l "_Toc162681918" (n) Franchise Area  PAGEREF _Toc162681918 \h 4  HYPERLINK \l "_Toc162681919" (o) Gross Revenue  PAGEREF _Toc162681919 \h 4  HYPERLINK \l "_Toc162681920" (p) Interactive OnDemand Services  PAGEREF _Toc162681920 \h 5  HYPERLINK \l "_Toc162681921" (q) Ordinance Cable Franchise or Ordinance  PAGEREF _Toc162681921 \h 5  HYPERLINK \l "_Toc162681922" (r) PEG Access Channels  PAGEREF _Toc162681922 \h 5  HYPERLINK \l "_Toc162681923" (s) PEG Capital Fee  PAGEREF _Toc162681923 \h 5  HYPERLINK \l "_Toc162681924" (t) PEG Capital Grant Surcharge Fee  PAGEREF _Toc162681924 \h 5  HYPERLINK \l "_Toc162681925" (u) Public Rights-of-Way  PAGEREF _Toc162681925 \h 5  HYPERLINK \l "_Toc162681926" (v) Subscriber  PAGEREF _Toc162681926 \h 6  HYPERLINK \l "_Toc162681927" (w) Transfer  PAGEREF _Toc162681927 \h 6  HYPERLINK \l "_Toc162681928" (x) Video Programming  PAGEREF _Toc162681928 \h 6  HYPERLINK \l "_Toc162681929" (y) Virginia Act  PAGEREF _Toc162681929 \h 7  HYPERLINK \l "_Toc162681930" 2. GRANT OF AUTHORITY; LIMITS AND RESERVATIONS  PAGEREF _Toc162681930 \h 7  HYPERLINK \l "_Toc162681931" (a) Grant of Authority  PAGEREF _Toc162681931 \h 7  HYPERLINK \l "_Toc162681932" (b) Area Served  PAGEREF _Toc162681932 \h 7  HYPERLINK \l "_Toc162681933" (c) Term  PAGEREF _Toc162681933 \h 7  HYPERLINK \l "_Toc162681934" (d) Grant Not Exclusive  PAGEREF _Toc162681934 \h 8  HYPERLINK \l "_Toc162681935" (e) Compliance with Applicable Law  PAGEREF _Toc162681935 \h 8  HYPERLINK \l "_Toc162681936" (f) Effect of Acceptance  PAGEREF _Toc162681936 \h 8  HYPERLINK \l "_Toc162681937" (g) No Waiver  PAGEREF _Toc162681937 \h 8  HYPERLINK \l "_Toc162681938" (h) No Recourse  PAGEREF _Toc162681938 \h 9  HYPERLINK \l "_Toc162681939" 3. TRANSFERS  PAGEREF _Toc162681939 \h 9  HYPERLINK \l "_Toc162681940" 4. PROVISION OF CABLE SERVICE  PAGEREF _Toc162681940 \h 9  HYPERLINK \l "_Toc162681941" (a) Availability of Cable Service  PAGEREF _Toc162681941 \h 9  HYPERLINK \l "_Toc162681942" (b) Extension of Service Requirements  PAGEREF _Toc162681942 \h 10  HYPERLINK \l "_Toc162681943" 5. CONSTRUCTION AND MAINTENANCE  PAGEREF _Toc162681943 \h 12  HYPERLINK \l "_Toc162681944" (a) System Tests and Inspections  PAGEREF _Toc162681944 \h 12  HYPERLINK \l "_Toc162681945" (b) Publicizing Proposed Construction Work  PAGEREF _Toc162681945 \h 12  HYPERLINK \l "_Toc162681946" 6. SYSTEM FACILITIES, EQUIPMENT AND SERVICES  PAGEREF _Toc162681946 \h 13  HYPERLINK \l "_Toc162681947" (a) System Characteristics  PAGEREF _Toc162681947 \h 13  HYPERLINK \l "_Toc162681948" (b) Closed Captioning and Descriptive Audio Service  PAGEREF _Toc162681948 \h 13  HYPERLINK \l "_Toc162681949" (c) Parental Control Devices  PAGEREF _Toc162681949 \h 13  HYPERLINK \l "_Toc162681950" (d) Technical Standards  PAGEREF _Toc162681950 \h 13  HYPERLINK \l "_Toc162681951" (e) Leased Access Channels  PAGEREF _Toc162681951 \h 14  HYPERLINK \l "_Toc162681952" (f) Emergency Alert System  PAGEREF _Toc162681952 \h 14  HYPERLINK \l "_Toc162681953" (g) Use of Poles and Conduits  PAGEREF _Toc162681953 \h 14  HYPERLINK \l "_Toc162681954" 7. SERVICES AND PROGRAMMING  PAGEREF _Toc162681954 \h 14  HYPERLINK \l "_Toc162681955" (a) Programming  PAGEREF _Toc162681955 \h 14  HYPERLINK \l "_Toc162681956" (1) Broad Programming Categories  PAGEREF _Toc162681956 \h 14  HYPERLINK \l "_Toc162681957" (b) Special Programming  PAGEREF _Toc162681957 \h 15  HYPERLINK \l "_Toc162681958" (c) Deletion or Reduction of Programming Categories  PAGEREF _Toc162681958 \h 15  HYPERLINK \l "_Toc162681959" 8. CHANNELS AND FACILITIES FOR PUBLIC, EDUCATIONAL AND GOVERNMENTAL USE  PAGEREF _Toc162681959 \h 16  HYPERLINK \l "_Toc162681960" (a) PEG Access Channels and Programming  PAGEREF _Toc162681960 \h 16  HYPERLINK \l "_Toc162681961" (1) PEG Channels  PAGEREF _Toc162681961 \h 16  HYPERLINK \l "_Toc162681962" (2) Additional PEG Channels  PAGEREF _Toc162681962 \h 16  HYPERLINK \l "_Toc162681963" (3) Interconnection  PAGEREF _Toc162681963 \h 17  HYPERLINK \l "_Toc162681964" (b) Service to Certain Facilities  PAGEREF _Toc162681964 \h 18  HYPERLINK \l "_Toc162681965" (c) PEG Capital Grant Surcharge  PAGEREF _Toc162681965 \h 18  HYPERLINK \l "_Toc162681966" (d) Payments Not Franchise Fees  PAGEREF _Toc162681966 \h 19  HYPERLINK \l "_Toc162681967" (e) Payment Schedule  PAGEREF _Toc162681967 \h 19  HYPERLINK \l "_Toc162681968" 9. PERIODIC REVIEW  PAGEREF _Toc162681968 \h 19  HYPERLINK \l "_Toc162681969" (a) Periodic Evaluation, Review and Modification  PAGEREF _Toc162681969 \h 19  HYPERLINK \l "_Toc162681970" 10. FRANCHISE FEE  PAGEREF _Toc162681970 \h 21  HYPERLINK \l "_Toc162681971" (a) Payment to Locality  PAGEREF _Toc162681971 \h 21  HYPERLINK \l "_Toc162681972" (b) Supporting Information  PAGEREF _Toc162681972 \h 22  HYPERLINK \l "_Toc162681973" (c) Late Payments  PAGEREF _Toc162681973 \h 22  HYPERLINK \l "_Toc162681974" (d) Audit  PAGEREF _Toc162681974 \h 22  HYPERLINK \l "_Toc162681975" (e) No Limitation on Taxing Authority  PAGEREF _Toc162681975 \h 23  HYPERLINK \l "_Toc162681976" 11. CUSTOMER SERVICE  PAGEREF _Toc162681976 \h 24  HYPERLINK \l "_Toc162681977" 12. INSURANCE AND INDEMNIFICATION  PAGEREF _Toc162681977 \h 24  HYPERLINK \l "_Toc162681978" (a) Indemnification Against Liability  PAGEREF _Toc162681978 \h 24  HYPERLINK \l "_Toc162681979" (b) Duty to Defend  PAGEREF _Toc162681979 \h 25  HYPERLINK \l "_Toc162681980" (c) No Liability Against Locality  PAGEREF _Toc162681980 \h 25  HYPERLINK \l "_Toc162681981" (d) General Comprehensive Liability Insurance Policy  PAGEREF _Toc162681981 \h 25  HYPERLINK \l "_Toc162681982" (e) Workers Compensation Insurance  PAGEREF _Toc162681982 \h 26  HYPERLINK \l "_Toc162681983" (f) Additional Insured, Primary Coverage and Defense  PAGEREF _Toc162681983 \h 26  HYPERLINK \l "_Toc162681984" (g) Notice  PAGEREF _Toc162681984 \h 26  HYPERLINK \l "_Toc162681985" (h) Filing of Certified Copy with Locality  PAGEREF _Toc162681985 \h 27  HYPERLINK \l "_Toc162681986" (i) Increase in Policy Limits  PAGEREF _Toc162681986 \h 27  HYPERLINK \l "_Toc162681987" (j) Subrogation  PAGEREF _Toc162681987 \h 28  HYPERLINK \l "_Toc162681988" (k) Third Parties  PAGEREF _Toc162681988 \h 28  HYPERLINK \l "_Toc162681989" 13. PERFORMANCE GUARANTEES AND REMEDIES  PAGEREF _Toc162681989 \h 28  HYPERLINK \l "_Toc162681990" (a) Bond  PAGEREF _Toc162681990 \h 28  HYPERLINK \l "_Toc162681991" (b) Remedies  PAGEREF _Toc162681991 \h 29  HYPERLINK \l "_Toc162681992" (c) Liquidated Damages  PAGEREF _Toc162681992 \h 30  HYPERLINK \l "_Toc162681993" (d) Revocation or Termination of Franchise  PAGEREF _Toc162681993 \h 31  HYPERLINK \l "_Toc162681994" (e) Rights Cumulative  PAGEREF _Toc162681994 \h 32  HYPERLINK \l "_Toc162681995" 14. OPERATIONS AND REPORTING PROVISIONS  PAGEREF _Toc162681995 \h 33  HYPERLINK \l "_Toc162681996" (a) Open Books and Records  PAGEREF _Toc162681996 \h 33  HYPERLINK \l "_Toc162681997" (b) Communications with Regulatory Agencies  PAGEREF _Toc162681997 \h 33  HYPERLINK \l "_Toc162681998" (c) Annual Report  PAGEREF _Toc162681998 \h 34  HYPERLINK \l "_Toc162681999" (d) Additional Reports  PAGEREF _Toc162681999 \h 34  HYPERLINK \l "_Toc162682000" (e) Maps  PAGEREF _Toc162682000 \h 35  HYPERLINK \l "_Toc162682001" 15. MISCELLANEOUS PROVISIONS  PAGEREF _Toc162682001 \h 35  HYPERLINK \l "_Toc162682002" (a) Binding Acceptance  PAGEREF _Toc162682002 \h 35  HYPERLINK \l "_Toc162682003" (b) Severability  PAGEREF _Toc162682003 \h 35  HYPERLINK \l "_Toc162682004" (c) Compliance with Federal and State Laws  PAGEREF _Toc162682004 \h 35  HYPERLINK \l "_Toc162682005" (d) Each Party Bears Its Own Costs  PAGEREF _Toc162682005 \h 36  HYPERLINK \l "_Toc162682006" (e) Force Majeure  PAGEREF _Toc162682006 \h 36  HYPERLINK \l "_Toc162682007" (f) Third Party Beneficiaries  PAGEREF _Toc162682007 \h 36  HYPERLINK \l "_Toc162682008" (g) No Evasion  PAGEREF _Toc162682008 \h 36  HYPERLINK \l "_Toc162682009" (h) Governing Law  PAGEREF _Toc162682009 \h 36  HYPERLINK \l "_Toc162682010" (i) Notices  PAGEREF _Toc162682010 \h 36  HYPERLINK \l "_Toc162682011" (j) Time of Essence  PAGEREF _Toc162682011 \h 37  HYPERLINK \l "_Toc162682012" (k) Captions and References  PAGEREF _Toc162682012 \h 37  HYPERLINK \l "_Toc162682013" (l) Understanding and Consent  PAGEREF _Toc162682013 \h 37  HYPERLINK \l "_Toc162682014" 16. ACCEPTANCE  PAGEREF _Toc162682014 \h 38  HYPERLINK \l "_Toc162682015" (a) Effective Date  PAGEREF _Toc162682015 \h 38  HYPERLINK \l "_Toc162682016" (b) Time of Acceptance  PAGEREF _Toc162682016 \h 38  HYPERLINK \l "_Toc162682017" EXHIBIT A. INITIAL SERVICE AREAS  PAGEREF _Toc162682017 \h 40  HYPERLINK \l "_Toc162682018" EXHIBIT B. FRANCHISE FEE WORKSHEET  PAGEREF _Toc162682018 \h 41  HYPERLINK \l "_Toc162682019" EXHIBIT C. CUSTOMER SERVICE STANDARDS  PAGEREF _Toc162682019 \h 42  ORDINANCE NO. ________ AN ORDINANCE CABLE FRANCHISE ADOPTED PURSUANT TO VIRGINIA AND OTHER APPLICABLE LAW CREATING A FRANCHISE APPLICABLE TO THE CONSTRUCTION, OPERATION AND MAINTENANCE OF A CABLE SYSTEM BY CAVALIER IP TV, LLC IN THE CITY OF HAMPTON, VIRGINIA AND PROVIDING FOR FEES, SERVICES, AND ENFORCEMENT BY CITY FOR A TERM OF FIFTEEN YEARS It is ordained as follows: PREAMBLE The City Council of the City of Hampton, Virginia adopts this Ordinance to comply with Applicable Law based on a request received by City on December15, 2006, from Cable Operator for an Ordinance Cable Franchise. 1. seq level0 \h \r0 seq level1 \h \r0 seq level2 \h \r0 seq level3 \h \r0 seq level4 \h \r0 seq level5 \h \r0 seq level6 \h \r0 seq level7 \h \r0 DEFINITIONS. tc "1. DEFINITIONS" \f C \l 1 As used in this Ordinance Cable Franchise, the following terms, phrases, words, and derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word shall is always mandatory and not merely directory. Words not defined shall be given their common and ordinary meaning. (a) Act tc \l 2 "(a) Act"means the federal Communications Act of 1934, as amended. (b) Affiliate tc \l 2 "(b) Affiliate"means another person who owns or controls, is owned or controlled by, or is under common ownership or control with, such person. (c) Applicable Lawtc \l 2 "(c) Applicable Law" means the Act, the Virginia Act, the Master Cable Ordinance of the City of Hampton, and such state and federal laws and rules and City ordinances as may govern the construction, operation, and maintenance of a Cable System. (d) Application tc \l 2 "(d) Application"means the application based upon the requirements of the Citys Master Cable Ordinance, and identified in the Hampton City Code at Chapter 9.1. (e) Basic Service Tiertc \l 2 "(e) Basic Service Tier" means the service tier that includes (i) the retransmission of local television broadcast channels and (ii) public, educational, and governmental channels required to be carried in the basic tier. (f) Cable Operatortc \l 2 "(f) Cable Operator" means Cavalier IP TV, LLC. (g) Cable Service or Servicetc \l 2 "(g) Cable Service or Service" means the one-way transmission to Subscribers of (i) video programming or (ii) other programming service, and Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. Cable Service does not include any video programming provided by a commercial mobile service provider defined in 47 U.S.C. 332(d). (h) Cable System or Cable Television System or Systemtc \l 2 "(h) Cable System or Cable Television System or System" means any facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Service that includes video programming and that is provided to multiple Subscribers within a community, except that such definition shall not include (i) a system that serves fewer than twenty (20) Subscribers; (ii) a facility that serves only to retransmit the television signals of one (1) or more television broadcast stations; (iii) a facility that serves only Subscribers without using any public right-of-way; (iv) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, 47 U.S.C. 201 et seq., except that such facility shall be considered a Cable System to the extent such facility is used in the transmission of video programming directly to Subscribers, unless the extent of such use is solely to provide interactive on-demand services; (v) any facilities of any electric utility used solely for operating its electric systems; (vi) any portion of a system that serves fewer than fifty (50) Subscribers in any locality, where such portion is a part of a larger system franchised in an adjacent locality; or (vii) an open video system that complies with 653 of TitleVI of the Communications Act of 1934, as amended, 47 U.S.C. 573. (i) Certificated Provider of Telecommunications Servicestc \l 2 "(i) Certificated Provider of Telecommunications Services" means a person holding a certificate issued by the State Corporation Commission to provide local exchange telephone service. (j) City or Localitytc \l 2 "(j) City or Locality" means the City of Hampton, Virginia. (k) Confidential Information or Confidentialitytc \l 2 "(k) Confidential Information or Confidentiality" means such information or disclosures made to City by Cable Operator where pursuant to applicable open records and Data Practices law in the Virginia Code Ann., included in Section2.2-3705.6 may be disclosed, when requested by Cable Operator will not be publicly disclosed. (l) Force Majeuretc \l 2 "(l) Force Majeure" means an event or events reasonably beyond the ability of the Cable Operator to anticipate and control. Force Majeure includes, but is not limited to, acts of God, incidences of terrorism, war or riots, labor strikes or civil disturbances, floods, earthquakes, fire, explosions, epidemics, hurricanes, tornadoes, governmental actions and restrictions, work delays caused by waiting for utility providers to service or monitor or provide access to utility poles to which the Cable Operator's facilities are attached or to be attached or conduits in which the Cable Operator's facilities are located or to be located, and unavailability of materials or qualified labor to perform the work necessary. (m) Franchisetc \l 2 "(m) Franchise" means an initial authorization, or renewal thereof, issued by the Locality, that authorizes the construction, operation, and maintenance of a Cable System. (n) Franchise Areatc \l 2 "(n) Franchise Area" means throughout the whole area of the City of Hampton, Virginia. (o) Gross Revenuetc \l 2 "(o) Gross Revenue" means all revenue, as determined in accordance with generally accepted accounting principles, that is actually received by the Cable Operator and derived from the operation of the Cable System to provide Cable Services in the Franchise Area. The term shall not include: (i) refunds or rebates made to Subscribers or other third parties; (ii) any revenue which is received from the sale of merchandise over home shopping channels carried on the Cable System, but not including revenue received from home shopping channels for the use of the Cable Service to sell merchandise; (iii) any tax, fee, or charge collected by the Cable Operator and remitted to a governmental entity or its agent or designee, including without limitation a local public access or education group; (iv) program launch fees; (v) directory or Internet advertising revenue including, but not limited to, yellow page, white page, banner advertisement, and electronic publishing; (vi) a sale of Cable Service for resale or for use as a component part of or for the integration into Cable Services to be resold in the ordinary course of business, when the reseller is required to pay or collect franchise fees or similar fees on the resale of the Cable Service; (vii) revenues received by any Affiliate or any other person in exchange for supplying goods or services used by the Cable Operator to provide Cable Service; and (viii) revenue derived from services classified as non-cable services under federal law, including, without limitation, revenue derived from telecommunications services and information services, and any other revenues attributed by the Cable Operator to non-cable services in accordance with rules, regulations, standards, or orders of the Federal Communications Commission. (p) Interactive On-Demand Servicestc \l 2 "(p) Interactive OnDemand Services" means a service providing video programming to Subscribers over switched networks on an on-demand, point-to-point basis, but does not include services providing video programming prescheduled by the programming provider. (q) Ordinance Cable Franchise or Ordinancetc \l 2 "(q) Ordinance Cable Franchise or Ordinance" means this Ordinance granting a Franchise to the Cable Operator pursuant to Applicable Law. (r) PEG Access Channelstc \l 2 "(r) PEG Access Channels" means the availability of capacity on a Cable System for public, education or government use (including institutional network use) by various agencies, institutions, organizations, groups, and individuals, including the Locality and its designated access providers, to acquire, create, and distribute programming not under a Cable Operators editorial control. (s) PEG Capital Feetc \l 2 "(s) PEG Capital Fee" means a recurring fee paid by a Cable Operator to support the capital costs of PEG Access Facilities, including institutional networks. (t) PEG Capital Grant Surcharge Feetc \l 2 "(t) PEG Capital Grant Surcharge Fee" means a fee paid by a new Cable Operator equal to the lower of (i) one and onehalf percent (1.5%) of the new Cable Operator's Gross Revenues derived from the operation of its Cable System in the Franchise Area or (ii) the lowest amount of capital contribution paid or provided in-kind, as shown on the books of the existing Cable Operator in the Franchise Area (a) when such capital contribution is amortized over the term of the existing Cable Operator's franchise and (b) divided by the number of Subscribers or annual Gross Revenue of the existing Cable Operator as shown on its most recent report to the Locality, depending on recovery methodology chosen by the Locality. (u) Public Rights-of-Waytc \l 2 "(u) Public Rights-of-Way" means the surface, the airspace above the surface and the area below the surface of any public street, highway, lane, path, alley, sidewalk, boulevard, or drive, including public utility easements or rights-of-way, and any temporary or permanent fixtures or improvements located thereon, now or hereafter held by the Locality which shall entitle the Locality and a Cable Operator to the use thereof for the purpose of installing and maintaining a cable System. (v) Subscribertc \l 2 "(v) Subscriber" means the Locality or any person who is lawfully receiving, for any purpose or reason, any Cable Service via the Cable Operators Cable System, whether or not a fee is paid for such Service. (w) Transfertc \l 2 "(w) Transfer" means any transaction in which (i) an ownership or other interest in the Cable Operator is transferred, directly or indirectly, from one (1) person or group of persons to another person or group of persons, so that majority control of the Cable Operator is transferred; or (ii) the rights and obligations held by the Cable Operator under the Cable Franchise granted under this Ordinance are transferred or assigned to another person or group of persons. However, notwithstanding clauses (i) and (ii) of the preceding sentence, a transfer of the Cable Franchise shall not include (a) transfer of an ownership or other interest in the Cable Operator to the parent of the Cable Operator or to another Affiliate of the Cable Operator; (b) transfer of an interest in the Cable Franchise granted under this Ordinance or the rights held by the Cable Operator under the Cable Franchise granted under this Ordinance to the parent of the Cable Operator or to another Affiliate of the Cable Operator; (c) any action that is the result of a merger of the parent of the Cable Operator; (d) any action that is the result of a merger of another Affiliate of the Cable Operator; or (e) a transfer in trust, by mortgage, or by assignment of any rights, title, or interest of the Cable Operator in the cable franchise or the system used to provide cable in order to secure indebtedness. (x) Video Programmingtc \l 2 "(x) Video Programming" means programming provided by, or generally considered comparable to, programming provided by a television broadcast station. (y) Virginia Acttc \l 2 "(y) Virginia Act" means Va. Code Ann. 15.22108.9, et seq. as amended. 2. seq level1 \h \r0 GRANT OF AUTHORITY; LIMITS AND RESERVATIONS tc "2. GRANT OF AUTHORITY; LIMITS AND RESERVATIONS" \f C \l 1 (a) Grant of Authority: tc \l 2 "(a) Grant of Authority" After review of the Application and adoption of this Ordinance and further by operation of Applicable Law, including the Virginia Act 15.22108.21, and upon acceptance by Cable Operator as provided for in this Ordinance, this Ordinance and the Franchise granted to Cable Operator is deemed to be effective as of December15, 2006. The Franchise granted to the Cable Operator by this Ordinance is for construction and operation of its System subject to the applicable terms and conditions of this Ordinance, and all Applicable Law. The Cable Operator has the right to construct, reconstruct, operate and maintain its System within the Public Rights-of-Way as set forth below. This Franchise Cable Ordinance neither authorizes the Cable Operator to use the Public RightsofWay for purposes of providing any service other than the Service, nor prohibits the Cable Operator from doing so. The Cable Operators authority to provide non-cable service shall be subject to Applicable Law. No privilege or power of eminent domain is bestowed by this Ordinance. (b) Area Served: tc \l 2 "(b) Area Served"The Franchise granted hereunder is for the Initial Service Area identified by the Cable Operator and depicted in maps associated hereto in Appendix A, extension of the Cable System to other portions of the Franchise Area shall be in accordance with this Ordinance as set forth below. (c) Term: tc \l 2 "(c) Term"This Franchise shall extend for a term of fifteen (15) years, commencing on effective date set forth above, unless it is earlier revoked as provided herein or other Applicable Law. (d) Grant Not Exclusive: tc \l 2 "(d) Grant Not Exclusive"This Ordinance and the Franchise and the right it grants to Cable Operator to use and occupy the Public RightsofWay shall not be exclusive, and the Locality reserves the right to grant other franchises for similar uses or for other uses of the Public Rights-of-Way, or any portions thereof, to any person, or to make any such use itself, at any time, in accordance with Applicable Law. (e) Compliance with Applicable Law: tc \l 2 "(e) Compliance with Applicable Law"The Cable Operator shall comply with this Ordinance and all Applicable Law subject to exercise of City police powers its rights under Applicable Law to exercise its governmental powers to their full extent. (f) Effect of Acceptance: tc \l 2 "(f) Effect of Acceptance"By Accepting the Franchise the Cable Operator: (1) Accepts and agrees to comply with this Ordinance and all Applicable Laws; (2) Agrees that this Ordinance was adopted pursuant to processes and procedures consistent with Applicable Law; that no provision, condition or term of this Ordinance at the time of the acceptance of the Franchise granted by this Ordinance was unlawful, unreasonable or arbitrary, void or unenforceable. (g) No Waiver: tc \l 2 "(g) No Waiver" (1) The failure of the Locality on one (1) or more occasions to exercise a right or to require compliance or performance under this Ordinance or any other Applicable Law shall not be deemed to constitute a waiver of such right or a waiver of compliance or performance by the Locality, nor to excuse the Cable Operator from complying or performing, unless such right or such compliance or performance has been specifically waived in writing. (2) No waiver by the Locality of any breach or violation of any provision of this Ordinance shall be deemed to be a waiver or a continuing waiver by the Locality of any subsequent breach or violation of the same or any other provision. Neither the granting of this Ordinance, nor any provision herein, nor any action by the Locality hereunder shall constitute a waiver of or a bar to the exercise of any governmental right or power of the Locality, including without limitation the right of eminent domain. (h) No Recourse: tc \l 2 "(h) No Recourse"Without limiting such immunities as the Locality or other persons may have under Applicable Law, the Cable Operator shall have no monetary recourse against the Locality or its officials, boards, commissions, agents or employees for any loss, costs, expense or damage arising out of (i) the construction, operation or repair of its System; or (ii) the acts or omissions of the Locality or any other entity using the Public RightsofWay or other property under the Localitys control, except acts and omissions of the Locality that involve gross negligence or intentional or criminal misconduct by the Locality. 3. seq level1 \h \r0 TRANSFERS tc "3. TRANSFERS" \f C \l 1 The Cable Operator shall not Transfer the Franchise granted herein without the prior written consent of the Locality, provided that such consent shall not be unreasonably withheld, delayed, or conditioned. No Transfer shall be made to a person, group of persons or Affiliate that is not legally, technically, and financially qualified to operate the Cable System and satisfy the Franchise obligations. 4. seq level1 \h \r0 PROVISION OF CABLE SERVICE tc "4. PROVISION OF CABLE SERVICE" \f C \l 1 (a) Availability of Cable Service: tc \l 2 "(a) Availability of Cable Service"The Cable Operator shall make Service available (i) up to all of the occupied residential dwelling units in the Initial Service Areas as depicted/described in Exhibit A within three (3) years from the date of the Franchise, subject to the limitations set forth in 4(b)(1), below and (ii) no less than sixty-five percent (65%) of the residential dwelling units in the area in the Locality in which the Cable Operator has its telephone facilities, within no less than seven (7) years from the date of the Franchise. The Locality shall have the right to monitor and inspect the deployment of Cable Services and the Cable Operator shall submit semiannual progress reports detailing the current provision of Cable Services in accordance with the deployment schedule and its new service area plans for the next six months. The reports shall include visual (graphic, mapping) or written descriptions of actual geographic boundaries of the service areas identified in this section. (b) Extension of Service Requirements: tc \l 2 "(b) Extension of Service Requirements" (1) The Cable Operator shall not be required to make the Service available: (a) for periods of Force Majeure; (b) for periods of delay caused by the Locality; (c) for periods of delay resulting from the Cable Operators inability to obtain authority to access rights-of-way in the service area; (d) in areas where developments or buildings are subject to claimed exclusive arrangements; (e) in developments or buildings that the Cable Operator cannot access under industry standard terms and conditions after good faith negotiation; (f) in developments or buildings that the Cable Operator is unable to provide the Service for technical reasons or that require facilities that are not available or cannot be deployed on a commercially reasonable basis; (g) in areas where it is not technically feasible to provide the Service due to the technology used by the Cable Operator to provide the Service; (h) in areas where the average occupied residential household density is less than thirty (30) occupied residential dwelling units per mile as measured in strand footage from the nearest technically feasible point on the Cable Operators active System; and (i) when the Cable Operators prior service, payment, or theft of service history with a Subscriber or potential Subscriber has been unfavorable. (2) Should, through new construction, an area within the Cable Operators Service Area meet the density requirement, the Cable Operator shall, subject to the exclusions in this Section 4(b), provide Service to such area within six (6) months of receiving notice that the density requirements have been met. (3) The Locality shall not require Cable Operator to use its telephone facilities to provide Cable Service outside of the area in the Locality in which the Cable Operator has its telephone facilities. (4) During the twelve (12) month period commencing after the seventh (7th) year anniversary date of the grant of this Franchise Ordinance, the Locality may, by ordinance adopted after a public hearing in which the Locality specifically finds that such a requirement is necessary to promote competition in Cable Services within the Locality, require the Cable Operator to make Service available to eighty percent (80%) of the residential dwelling units in the area in the Locality in which the Cable Operator has its telephone facilities within no less than ten (10) years of the date of the grant of the Franchise, subject to the exclusions in clauses (a) through (i) of Section 4(b) above. If the Cable Operator notifies the Locality that it is unwilling to accept this additional service availability requirement, the Locality may, after notice and public hearing, terminate this Ordinance Cable Franchise. (5) The Cable Operator shall file a certificate with the Locality at its third (3rd) and seventh (7th), and if applicable, tenth (10th), anniversary dates certifying its compliance with the foregoing service requirements. (c) If within three (3) years after the grant of this Ordinance the Cable Operator notifies the Locality that its provision of Cable Services within the Locality is no longer economically feasible, it may surrender this Franchise for the entire Locality without liability. If the Cable Operator surrenders this Franchise, it shall not be eligible to obtain a new Cable Service Franchise within the Locality until after the normal expiration date of this Ordinance. 5. seq level1 \h \r0 seq level2 \h \r0 seq level3 \h \r0 CONSTRUCTION AND MAINTENANCE tc "5. CONSTRUCTION AND MAINTENANCE" \f C \l 1 (a) System Tests and Inspections: tc \l 2 "(a) System Tests and Inspections" (1) The Cable Operator shall conduct tests upon the Localitys request to ensure that its System is functioning in compliance with Applicable Laws and regulations, including Federal Communications Commission signal leakage requirements, and make the results of such tests available to the Locality to verify such compliance. Such results shall be held proprietary and confidential. If any such test indicates that any part or component of the System fails to meet applicable requirements, the Cable Operator, without requirement of additional notice or request from Locality, shall take corrective action, retest the locations and advise the Locality of the action taken and results achieved. (2) The Locality may conduct inspections of construction areas and Subscriber installations, including but not limited to inspections to assess compliance with the Cable Operator's construction and installation requirements, this Agreement and Applicable Law generally. Inspection does not relieve the Cable Operator of its obligation to build in compliance with all provisions of the Franchise. (b) Publicizing Proposed Construction Work: tc \l 2 "(b) Publicizing Proposed Construction Work"The Cable Operator shall notify the public prior to commencing any proposed construction that will significantly disturb or disrupt public property or have the potential to present a danger or affect the safety of the public generally. The Cable Operator shall publicize proposed construction work at least one (1) week prior to commencement of that work by causing written notice of such construction work to be delivered to the Localitys public works department and by notifying those Persons most likely to be affected by the work in at least two (2) of the following ways: by telephone, in person, by mail, by distribution of flyers to residences, or by publication in local newspapers. 6. seq level1 \h \r0 SYSTEM FACILITIES, EQUIPMENT AND SERVICES tc "6. SYSTEM FACILITIES, EQUIPMENT AND SERVICES" \f C \l 1 (a) System Characteristics: tc \l 2 "(a) System Characteristics"The Cable Operator's System shall, at all times during the Franchise term, meet or exceed the following requirements: (1) The Cable Operator shall comply with all Applicable Law and regulations concerning System compatibility with Subscribers' television receivers and/or electronic recording devices. (2) The Cable Operator shall comply with all FCC regulations regarding scrambling or other encryption of signals. (3) The System shall function so that there is no significant deterioration in the quality of PEG Access signals or leased access signals, either upstream or downstream, as compared with any other channel on the System. (b) Closed Captioning and Descriptive Audio Service. tc \l 2 "(b) Closed Captioning and Descriptive Audio Service" The Cable Operator shall make audio descriptive service and closed captioning capabilities available to the extent required by Applicable Law. (c) Parental Control Devices. tc \l 2 "(c) Parental Control Devices" The Cable Operator shall make available parental control devices as required by Applicable Law. (d) Technical Standards: tc \l 2 "(d) Technical Standards" The System shall meet or exceed the applicable technical standards set forth in 47 C.F.R. 76.601 and any other applicable technical standards. (e) Leased Access Channels: tc \l 2 "(e) Leased Access Channels" The Cable Operator shall provide leased access channels as required by Applicable Law. (f) Emergency Alert System: tc \l 2 "(f) Emergency Alert System" (1) The Cable Operator shall install and maintain for use by the Locality an Emergency Alert System (EAS) meeting all applicable requirements of federal law. (2) In the event of an emergency situation that requires notification to Locality citizens, in addition to other methods of notification, the Locality, in accordance with established Emergency Alert System (EAS) procedures, will notify the Cable Operator of the emergency and present it with an emergency message. The Cable Operator shall broadcast the emergency message on all analog and digital channels, or shall force tune viewers to a designated EAS alert channel, except for those off-air channels with which the Cable Operator has agreed not to override during an emergency message. The emergency message will advise the citizens of the emergency and direct them to turn to the Localitys emergency alert channel for further information. (g) Use of Poles and Conduits: tc \l 2 "(g) Use of Poles and Conduits" This Ordinance does not authorize Cable Operator to erect poles in the Public RightsofWay. Cable Operator shall be responsible for obtaining all necessary pole attachment agreements for use of existing poles. SECTION 7. SERVICES AND PROGRAMMING tc "7. SERVICES AND PROGRAMMING" \f C \l 1 (a) Programming. tc \l 2 "(a) Programming" (1) Broad Programming Categories. tc \l 3 "(1) Broad Programming Categories"Cable Operator shall use its best efforts to provide or enable the provision of at least the following Initial broad categories of Programming to the extent programming within these broad categories exist and is made available to the Cable Operator on terms and conditions acceptable to the Cable Operator, unless otherwise required by Applicable Law: (A) Educational programming; (B) News & information; (C) Sports; (D) General entertainment (including movies); (E) Children/family-oriented; (F) Arts; culture and performing arts; (G) Science/documentary; (H) Weather information; (I) National, state and local government affairs; (J) Local Origination Programming, Leased Access; (K) PEG Access programming channels as provided in this Ordinance. (b) Special Programming. tc \l 2 "(b) Special Programming" Cable Operator has agreed to offer to all Subscribers of its Basic Service Tier the NASA channel and the Military channel. (c) Deletion or Reduction of Programming Categories. tc \l 2 "(c) Deletion or Reduction of Programming Categories" (1) Cable Operator reserves the right to delete, add, or change the mix, level, or quality of programming services subject to Applicable Law. (2) Cable Operator will make its best effort to maintain the mix of programming and number of channels as well as the Special Programming available to Subscribers throughout the term of this Ordinance and to periodically upgrade, improve, and add programs and services to meet community needs. 8. seq level1 \h \r0 seq level2 \h \r0 CHANNELS AND FACILITIES FOR PUBLIC, EDUCATIONAL AND GOVERNMENTAL USE tc "8. CHANNELS AND FACILITIES FOR PUBLIC, EDUCATIONAL AND GOVERNMENTAL USE" \f C \l 1 (a) PEG Access Channels and Programming: tc \l 2 "(a) PEG Access Channels and Programming" (1) PEG Channels. tc \l 3 "(1) PEG Channels" Upon completion of an interconnection arrangement with existing Cable provider(s) Cable Operator shall make available to all Subscribers on the System three (3) video channels for public, educational and governmental use that is equal to the number of PEG channels provided by the existing Cable Operator. The locality or its designee shall assume responsibility for management, operation, and programming of such channels. (2) Additional PEG Channels. tc \l 3 "(2) Additional PEG Channels" In addition to the channels specified in Section8(a), if the Locality substantially utilizes its existing public, educational, and governmental access channels, it may by ordinance, after a public hearing, require up to three (3) additional public, educational, and governmental access channels. For purposes of this subdivision, a public, educational, and governmental access channel shall be considered to be substantially utilized when twelve (12) hours are programmed on that channel each calendar day; in addition, at least thirtythree percent (33%) of the twelve (12) hours of programming for each business day on average over each calendar quarter must be non-repeat programming. For purposes of this subdivision, non-repeat programming shall include the first three (3) videocastings of a program and shall include programming on other public, educational, and governmental access channels in that locality. Programming for purposes of determining substantial utilization shall not include an alphanumeric scroll, except that for purposes of requiring one (1) or more additional public, educational, and governmental access channels, an alphanumeric scroll shall be included as programming on not more than one (1) channel. Any such ordinance must apply equally to all providers of Cable Service within the Franchise Area. Any additional public, educational, and governmental access channel provided pursuant to such an ordinance that is not utilized by the Locality for at least eight (8) hours a day shall no longer be made available to the Locality, but may be programmed at the Cable Operator's discretion. At such time as the Locality can certify to the Cable Operator a schedule for at least eight (8) hours of daily programming for a period of three (3) months, the Cable Operator shall restore the previously re-allocated channel. In addition to the channels specified in subsection (A). (3) Interconnection. tc \l 3 "(3) Interconnection" (A) Cable Operator shall use reasonable efforts to interconnect its System with all existing and future Cable Service franchisees or, at its option, directly with the PEG programming provider. Cable Operator shall negotiate in good faith with such franchisees respecting reasonable, mutually convenient, cost-effective, and technically viable interconnection points, methods, terms and conditions. The Cable Operator and such other franchisees shall negotiate the precise terms and conditions of an interconnection agreement. (B) If the Cable Operator and such other franchisees are unable to reach an interconnection agreement, the Locality may, by ordinance adopted after a public hearing, require the Cable Operator to interconnect with any other such franchisees to ensure the carriage of required PEG Access Channels. (C) If the Cable Operator and all existing Cable Operators cannot agree to an interconnection agreement within one hundred eight (180) days of a request to interconnect by the Cable Operator, then the Locality is authorized to determine an interconnection point. Each party shall be responsible for its own interconnection cost. Both Cable Operator and such other franchisees shall use commercially reasonable efforts to complete interconnection as soon as practicable after the Locality promulgates the ordinance designating an interconnection point. (b) Service to Certain Facilities: tc \l 2 "(b) Service to Certain Facilities" (1) Upon the request of the Locality, and subject to the conditions in this Section8(b), the Cable Operator shall provide, without charge, one (1) service outlet activated for Basic Cable Service to each fire station, public school, police station, public library, and any other local government building, within the Cable Operators Franchise Area. (2) The Cable Operator shall be required to make one (1) standard installation at one (1) point reasonably convenient to use at each site specified by the Locality pursuant to this Section 8(b) and shall not be required to wire the entire facility or to provide more than one (1) outlet at no cost. (c) PEG Capital Grant Surcharge. tc \l 2 "(c) PEG Capital Grant Surcharge" (1) Cable Operator shall pay Locality a quarterly recurring PEG Capital Grant Surcharge fee as specified in Section10(f). (2) The PEG Capital Grant Surcharge will be used to support the capital costs of PEG Access Channel facilities, including institutional networks. (3) The PEG Capital Grant Surcharge Fee shall be paid to the Locality on a quarterly basis for the remainder of the current franchise term of the existing Cable Service franchisee in the Locality. (4) At the expiration of the current term of the existing Cable Operator agrees to negotiate in good faith with the Locality and all other Cable Service franchisees to set a new, recurring fee to support the reasonable and necessary capital costs of PEG Access Channel facilities, including institutional networks, that shall be imposed on all Cable Operator and all of the Cable Service franchisees such that the fee applies equally to all of the customers of all Cable Operator and other Cable Service franchisees in the Locality. (5) If the Cable Operator and all of the Cable Service franchisees and the Locality cannot agree on such a recurring capital cost fee, the Locality, by ordinance adopted after a public hearing, may impose a recurring fee, calculated on a per subscriber or percentage of gross revenue basis, to support the reasonable and necessary capital costs of PEG Access Channel facilities, including institutional networks. (d) Payments Not Franchise Fees. tc \l 2 "(d) Payments Not Franchise Fees"Any costs to the Cable Operator associated with the provision of support for PEG Access pursuant to this Section and any payments made to the Locality pursuant to Section10(f) of this Ordinance do not constitute and are not part of a franchise fee, and fall within one or more of the exceptions to 47 U.S.C. 542. (e) Payment Schedule. tc \l 2 "(e) Payment Schedule" All fees paid under this subdivision shall be paid by the Cable Operator to the Locality on the same schedule as Franchise Fees are paid under Section 10 below. 9. PERIODIC REVIEW tc "9. PERIODIC REVIEW" \f C \l 1 (a) Periodic Evaluation, Review and Modification. tc \l 2 "(a) Periodic Evaluation, Review and Modification"The field of cable communications is a relatively new and rapidly changing one which may see many regulatory, technical, financial, marketing, and legal changes during the term of this Ordinance. Therefore, in order to provide for a maximum degree of flexibility in this Ordinance, and to help achieve a continued advanced and modern System, the following evaluation provision will apply. (1) The City reserves the right to adopt rules and regulations controlling the procedures as set forth below and the subjects for Evaluation and Renegotiation Sessions. In the absence of any City action taken to exercise these rights, Cable Operator shall be subject to at least the procedures and subjects described in this Section. (2) The City may require, at its sole discretion, evaluation sessions at any time during the term of this Ordinance, provided, however, there shall not be more than one (1) evaluation session during ay one (1) calendar year. (3) Topics which may be discussed at any evaluation and renegotiation session include, but are not limited to rates, Channel capacity, the System performance, programming, access, municipal uses of cable, Subscriber Complaints, judicial rulings, FCC rules, and any other topics the City or Cable Operator deem relevant. (4) During an evaluation session, Cable Operator shall fully cooperate with the City and shall provide the reports required herein to enable the City to perform the evaluation without cost to City. To the extent such information or documents contain confidential information as defined in paragraph1 K___ of this Ordinance, such confidential information may not be disclosed. (5) If at any time during this evaluation, the City determines that reasonable evidence exists of System performance which fails to meet the requirements of this Ordinance, the City may require Cable Operator to perform tests and analysis directed toward such suspected inadequacies. Cable Operator shall fully cooperate with the City in performing such testing and any report prepared by Cable Operator shall include at least: (A) A description of the problem in the System performance which precipitated the special tests. (B) The System component tested. (C) The equipment used and procedures employed in testing. (D) The method, if any, by which the System performance problem was resolved. (E) Any other information pertinent to said tests and analyses which may be required by the City, or determined when the test is performed. If after receiving Cable Operators report the City determines that reasonable evidence still exists of inadequate System performance, the City may enlist an independent engineer to perform tests and analyses directed toward such suspected failures to meet the requirements of this Ordinance. Cable Operator shall cooperate and permit said testing. (6) As a result of an Evaluation and Renegotiation Session, the City or Cable Operator may determine that a change in the terms of this Ordinance should be required to meet the needs of the community as determined by City, that the System or Ordinance requirements should be updated, changed, revised, or that additional services should be provided and that to provide same would be economically feasible. If the change is consistent with the terms of this Ordinance, the needs of the City, and is economically feasible as determined following an evaluation of Cable Operators financial condition, length of term remaining on the Ordinance, economic waste, if any, that would occur should the terms be changed, and rate of return on the investment within the community, the parties will in good faith, review and negotiation the terms of the change and any amendment to this Ordinance. Based on this review, and upon adoption of such a change or new requirement through a mutually acceptable Ordinance, the change will become effective. 10. seq level1 \h \r0 FRANCHISE FEE tc "10. FRANCHISE FEE" \f C \l 1 (a) Payment to Locality: tc \l 2 "(a) Payment to Locality"Each year during the Franchise term, as part of the compensation due to the Locality for use of the Public Rights-of-Way pursuant to this Franchise Ordinance, the Cable Operator shall pay to the Locality, on a quarterly basis, a Franchise Fee of five percent (5%) of its Gross Revenue. Such payments shall be made no later than thirty (30) days following the end of each calendar quarter. In calculating the Franchise Fee, any discounts resulting from purchasing Cable Services as part of a bundle shall be reasonably allocated between the respective services that constitute the bundled transaction. (b) Supporting Information: tc \l 2 "(b) Supporting Information" Each Franchise Fee payment shall be certified by the Cable Operator as correct, and shall be accompanied by a brief report showing the basis for the computation and such other relevant facts as may be required by the Locality, including the completion of a Franchise Fee Payment Worksheet attached hereto as ExhibitB. At the request of Locality, payments will be made electronically. (c) Late Payments: tc \l 2 "(c) Late Payments"In the event any Franchise Fee payment or recomputation amount is not made on or before the required date, the Cable Operator shall pay liquidated damages as specified in Section 13(c) for failure to render payments, plus interest charges computed from such due date, at an annual rate equal to the commercial prime interest rate of the Locality's primary depository bank during the period such unpaid amount is owed, in addition to the Franchise Fee amount originally owed. (d) Audit: tc \l 2 "(d) Audit" (1) The Locality shall have the right to inspect and copy records and the rights to audit and to recompute any amounts determined to be payable under this Agreement, whether the records are held by the Cable Operator, an Affiliate, or any other entity that collects or receives funds related to the Cable Operator's operation in the Locality, including, by way of illustration and not limitation, any entity that sells advertising on the Cable Operator's behalf. (2) The Cable Operator shall be responsible for providing to the Locality all records necessary to confirm the accurate payment of Franchise fees, without regard to by whom they are held. The Cable Operator shall maintain such records for a period of three (3) years from the date of such payment. the term of its Franchise Agreement, and any renewals or extensions thereof. (3) The Locality's audit expenses shall be borne by the Locality unless the audit discloses an underpayment equal to more than five percent (5%) of the amount due, in which case the costs of the audit shall be borne by the Cable Operator as a cost incidental to the enforcement of the Franchise. Any additional amounts due to the Locality as a result of the audit shall be paid within thirty (30) days following written notice to the Cable Operator by the Locality of the underpayment, which notice shall include a copy of the audit report. If recomputation results in additional revenue to be paid to the Locality, such amount shall be subject to interest as specified above. (e) No Limitation on Taxing Authority: tc \l 2 "(e) No Limitation on Taxing Authority" (1) Nothing in this Franchise Ordinance shall be construed to limit any authority of the Locality to impose any tax, fee, or assessment of general applicability. By way of illustration and not limitation, to the extent permitted by Applicable Law, the Locality may impose a tax, fee, or other assessment on any Person (other than the Cable Operator) with respect to Cable Service or other communications service provided by such Person over a Cable System for which charges are assessed to Subscribers but not received by the Cable Operator. (2) The Franchise Fee payments required by this section shall be in addition to any and all taxes, fees or charges which the Cable Operator shall be required to pay to the Locality or to any state or federal agency or authority, except to the extent that such taxes, fees or charges must be considered Franchise Fees pursuant to 47 U.S.C. 542(g). (f) Franchisee shall pay Locality a PEG Capital Grant surcharge of one and onehalf percent (1.5%) of Franchises Gross Revenue, per annum, payable quarterly with the Franchise Fee as described in this Section. 11. CUSTOMER SERVICE tc "11. CUSTOMER SERVICE" \f C \l 1 Cable Operator shall comply with the Customer Service Standards set forth in Exhibit C. 12. seq level1 \h \r0 INSURANCE AND INDEMNIFICATION tc "12. INSURANCE AND INDEMNIFICATION" \f C \l 1 (a) Indemnification Against Liability:  TC "(a) Indemnification Against Liability" \f C \l "2"  The Cable Operator shall indemnify and save free and harmless, and by the acceptance of the Franchise granted under this Ordinance, agrees to indemnify and save free and harmless the Locality, the Locality Council, each member thereof, all officers, agents, employees and members of boards and commissions of the Locality from and against any and all liability by reason of or arising out of any and all claims, demands, causes of action or proceedings which may be asserted, prosecuted or established against them or any of them, for damage to persons or property of whatever nature arising out of the use by the Cable Operator of the Public RightsofWay, or of any other operations or activities of the Cable Operator pursuant to this Franchise Ordinance and the operation of its Cable System, whether such damage shall be caused by negligence or otherwise (including but not limited to any liability for damages for defamation and damages by reason of or arising out of any failure by the Cable Operator to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the Cable Operators Cable System or vehicle operations) and irrespective of the amount of the liability insurance policies required hereunder, but excepting there from liability airings out of any claim, demand, cause of action or proceeding resulting from the negligence or willful misconduct of the Locality, the Locality Council, each member thereof, or officers, agents, employees or members of boards and commissions of the Locality, or resulting from the negligence or willful misconduct of persons distributing programs via the access channels over which persons and programming the Cable Operator cannot legally and does not exercise control. (b) Duty to Defend:  TC "(b) Duty to Defend" \f C \l "2" The Cable Operator shall defend, and by the acceptance of this Franchise Ordinance, agrees to defend at its own cost and expense the Locality, the Locality Council each member thereof, all officers, agents, employees and members of board and commissions of the Locality against any and all claims, demands, actions or proceedings brought against them or any of them, in respect to the matters embraced by the indemnity set forth above in paragraph(a) (c) No Liability Against Locality:  TC "(c) No Liability Against Locality" \f C \l "2" The Cable Operator shall have no recourse whatsoever against the Locality, the Locality Council, any member thereof, or any officer, agent, employee or member of a board or commission of the Locality for any loss, cost, expense or damage occasioned by any requirement or duty imposed on Cable Operator by this Franchise or because of the enforcement of any such requirement or duty. (d) General Comprehensive Liability Insurance Policy:  TC "(d) General Comprehensive Liability Insurance Policy " \f C \l "2"  Concurrently with the filing of the acceptance of this Franchise Ordinance, the Cable Operator shall furnish to the Locality and at all times during the existence of the Franchise granted hereunder, shall maintain in full force and effect, at its own cost and expense, a Commercial General Liability Insurance Policy and in a form satisfactory to the Locality. Said policy shall include, but shall not be limited to, personal injury, broad form property damage, blanket contractual, completed operations, underground hazard, explosion and collapse hazard, independent contractors, vaults and products liability insurance. Said policy shall insure the Cable Operator, the Locality, the Locality Council, each member thereof, all officers, agents, employees and members of board or commissions of the Locality against liability for all matters embraced in paragraph9.1, with minimum combined single liability limit of two million dollars ($2,000,000). (e) Workers Compensation Insurance: TC "(e) Workers Compensation Insurance"\l 2 The Cable Operator will obtain and maintain workers compensation insurance for all Cable Operators employees, and in case any work is sublet, Cable Operator will require any subcontractor similarly to provide workers compensation insurance for all subcontractors employees, in compliance with state laws, and to fully protect the Locality from any and all claims arising out of work-related occurrences. Cable Operator hereby indemnifies Locality for any damage resulting to it from failure of either Cable Operator or any subcontractor to obtain and maintain such insurance. Cable Operator will provide the Locality with a certificate of insurance indicating workers compensation insurance prior to operations under this Franchise and the commencement of any construction, System Upgrade, reconstruction, or maintenance of the System. The certificate of insurance should confirm that the required endorsements are in effect. (f) Additional Insured, Primary Coverage and Defense:  TC "(f) Additional Insured, Primary Coverage and Defense" \f C \l "2" The policies of insurance shall contain an additional insured clause providing that Locality, the Locality Council, each member thereof, all officers, agents, employees and members of boards and commissions of the Locality shall be named as an additional insured under said policy. Each such policy required above shall provide that it is to be considered primary insurance in the event a demand is made on the Locality. Each policy required above shall contain a provision by the insurer to perform the covenant for defense set forth in paragraph(b). (g) Notice:  TC "(g) Notice" \f C \l "2" Each of the abovelisted policies of insurance shall contain a provision that a written notice of cancellation or reduction in coverage shall be delivered to the Locality Recorder thirty (30) days in advance of the effective date thereof. If such insurance is provided by a policy which also covers any other entity or person other than those abovenamed, then such policy shall contain the standard crossliability enforcement. The Cable Operator agrees that it will not cancel or reduce said insurance coverage without the Locality having been given thirty (30) days prior written notice thereof by Cable Operator. (h) Filing of Certified Copy with Locality:  TC "(h) Filing of Certified Copy with Locality" \f C \l "2" A certificate of insurance coverage shall be filed in the office of the Locality concurrently upon the acceptance of the award of this Franchise. A certified copy of all amendments to said policies and all replacement and renewal policies shall be filed in the office of the Locality Recorder prior to their effective date. (i) Increase in Policy Limits:  TC "(i) Increase in Policy Limits" \f C \l "2" If the Locality determines that the type of insurance and minimum limits of insurance required herein becomes inadequate for such purposes during the term of this Franchise, then beginning January1, 2008, the coverage as specified in this Section may be increased in direct proportion to the increase in the Consumer Price Index or its equivalent as reported and published by the United States Government and measured from the period January1, 2004 through January1, 2007. This shall be a onetime increase and the amount as calculated at that point shall remain the required amounts of coverage for the balance of the term of the Franchise. Provided further, however, that if during any calendar year in the term of this Franchise the Consumer Price Index shall rise by more than ten percent (10%), such an occurrence may trigger an increase in the insurance requirements of this Section so as to bring the insurance coverage in line with the proportionate increase in the Consumer Price Index as measured from January1, 2004 through the close of the year in which the Consumer Price Index increased by more than ten percent (10%). The Locality shall provide the Cable Operator with thirty (30) days written notice of any proposed changes in the insurance limits and Cable Operator shall then make the changes and file with the Locality a Certificate of Insurance within fortyfive (45) days thereafter. (j) Subrogation:  TC "(j) Subrogation" \f C \l "2" Any insurance policies procured by the Cable Operator hereunder shall provide that the insurance carrier waives all rights of subrogation against the Locality. (k) Third Parties:  TC "(k) Third Parties" \f C \l "2" Cable Operator shall be liable for the acts of its third parties (contractors and subcontractors) and ensure that before commencement of work regarding construction, operation, and maintenance of the Cable System, any such third parties have provided insurance in compliance with this Section. 13. seq level1 \h \r0 PERFORMANCE GUARANTEES AND REMEDIES tc "13. PERFORMANCE GUARANTEES AND REMEDIES" \f C \l 1 (a) seq level2 \h \r0 Bond: tc \l 2 "(a) Bond" (1) The Cable Operator shall obtain and maintain during the entire term of the Franchise granted hereunder, and any renewal or extensions thereof, an irrevocable bond from a financial institution licensed to do business in Virginia in the amount of fifty thousand dollars ($50,000), to ensure the Cable Operator's faithful performance of its obligations. (2) The Cable Operator shall obtain the reasonable approval of the Locality for the language of the bond before it is obtained. The Cable Operator shall file with the Locality a complete copy of the bond (including all terms and conditions applying to the bond or to draws upon it) prior to its effective date, and keep such copy current with respect to any changes over the life of the Franchise. (3) The bond shall not contain language requiring that in the event of any default a notice to the surety must be given within a specified period of time. (4) Prior to taking any action under the bond the Locality shall give the Cable Operator written notice of the default in its performance. If within thirty (30) calendar days following such written notice from the Locality to the Cable Operator the Cable Operator has not taken corrective action to the satisfaction of the Locality, or provided a written notice of its proposed cure, the Locality may give written notice to the Cable Operator of its intent to draw down upon the bond. (54) The bond shall contain language ensuring that it cannot be canceled, or allowed to lapse, until sixty (60) days after receipt by the Locality, by certified mail, return receipt requested, of a written notice from the issuer of intent to cancel or not to renew. (65) No later than thirty (30) days after mailing of notification to the Cable Operator by certified mail, return receipt requested, of a withdrawal from the bond, the Cable Operator shall restore the bond to the total amount specified herein. (b) Remedies: tc \l 2 "(b) Remedies"In addition to any other remedies available at law or equity, the Locality may apply any one or a combination of the following remedies in the event the Cable Operator violates this Franchise Ordinance or applicable state or federal law: (1) Apply any remedy provided for in this Ordinance. (2) Revoke the Franchise pursuant to the procedures specified in this Ordinance. (3) Impose penalties available under applicable state and local laws for violation of Locality ordinances. (4) In addition to or instead of any other remedy, seek legal or equitable relief from any court of competent jurisdiction. (5) Any action, proceeding or exercise of a right by the Locality under this section does not constitute an election of remedies or a waiver of any other right the Locality may have, including the right to seek specific performance of a Franchise obligation, except that the Localitys election of liquidated damages shall take the place of any right to obtain actual damages over and above the payment of any amounts otherwise due. (c) Liquidated Damages: tc \l 2 "(c) Liquidated Damages" Because the Cable Operator's failure to comply with provisions of the Franchise Ordinance will result in injury to the Locality, and because it is and will be impracticable to determine the actual amount of such damage in the event of delay or nonperformance, by accepting the Franchise granted herein the Cable Operator agree to the following liquidated damages for the following violations of the Franchise Ordinance. BreachLiquidated Damages(A) Failure to render Franchise Fee payments due to the LocalityThe legal rate of interest set forth at 6.1-330.53 of the Code of Virginia (currently, six percent (6%) per annum).(B) Failure to supply information, reports, or filings lawfully required$100 for each violation for each day the violation continues (after Cable Operator is afforded a ten (10) business day opportunity notice to cure). (1) For consumer protection standards with which compliance is measured on a quarterly basis, liquidated damages shall be assessed as follows: (A) Quarterly measuring periods shall be January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31. (B) If the Cable Operator does not meet the prescribed standard in a given quarterly measuring period, the Cable Operator shall be liable for liquidated damages in the following amounts: five hundred dollars ($500) for each quarter in which such standards were not met if the failure was by less than five percent (5%); $1,000 for each quarter in which such standards were not met if the failure was by five percent (5%) or more but less than fifteen (15%); and two hundred dollars ($2,000) for each quarter in which such standards were not met if the failure was by fifteen (15%) or more. (2) Payment by the Cable Operator of liquidated damages shall be due thirty (30) days after the date of the Localitys notice assessing such damages pursuant to Applicable Law. If the Cable Operator does not make payment within that period, the Locality may withdraw from the Cable Operators bond the amount assessed, pursuant to Applicable Law. (d) seq level2 \h \r0 Revocation or Termination of Franchise: tc \l 2 "(d) Revocation or Termination of Franchise" (1) Upon completion of the term of the Franchise, if a new, extended, or renewed Franchise is not granted to the Cable Operator by the Locality, the Cable Operator's right to occupy the Public Rights-of-Way shall terminate, subject to applicable federal or state law. (2) The Locality shall have the right to revoke the Franchise for any material breach of this Ordinance. (3) To revoke the Franchise granted herein, the Locality shall give the Cable Operator written notice of the default in its performance. If within thirty (30) calendar days following such written notice from the Locality to the Cable Operator the Cable Operator has not taken corrective action to the satisfaction of the Locality, the Locality may give written notice to the Cable Operator of its intent to revoke the Franchise, stating its reasons; provided that no opportunity to cure shall be provided where the Cable Operator is shown to have defrauded or attempted to defraud the Locality or its Subscribers. (4) Prior to revoking the Franchise, the Locality shall hold a public hearing, on thirty (30) calendar days' notice, at which time the Cable Operator and the public shall be given an opportunity to be heard. Following the public hearing, the Locality may determine whether to revoke the Franchise based on the information presented at the hearing, and other information of record, or, where applicable, grant additional time to the Cable Operator to affect any cure. If the Locality determines to revoke the Franchise, it shall issue a written decision setting forth the reasons for its decision. A copy of such decision shall be transmitted to the Cable Operator. (5) If the Locality revokes the Franchise, or if for any other reason the Franchise terminates, the following procedures and rights are effective: The Locality may require the former Cable Operator to remove its facilities and equipment at the former Cable Operator's expense and restore affected sites as required by Applicable Law, or permit the former Cable Operator to abandon such facilities in place, unless the Cable Operator sells its facilities and equipment to an entity that is granted a franchise by the Locality. If the former Cable Operator fails to remove its facilities within a reasonable period of time, the Locality may have the removal done at the former Cable Operator's and/or surety's expense. (e) Rights Cumulative: tc \l 2 "(e) Rights Cumulative"The rights reserved to the Locality herein are in addition to all other rights of the Locality, whether reserved herein or authorized by Applicable Law. No action, proceeding, or exercise of a right with respect to the letter of credit will affect any other right the Locality may have. Neither the bond, nor the receipt of any damages recovered by the Locality thereunder, shall be construed to excuse faithful performance by the Cable Operator or limit the liability of the Cable Operator under the terms of its Franchise for damages, either to the full amount of the bond or otherwise. 14. OPERATIONS AND REPORTING PROVISIONS tc "14. OPERATIONS AND REPORTING PROVISIONS" \f C \l 1 (a) Open Books and Records: tc \l 2 "(a) Open Books and Records" The City shall have the right to inspect, upon twentyfour (24) hours written notice, at any time during normal business hours at the Cable Operators office in City all books, records, maps, plans, financial statements, service Complaint logs, performance test results, record of requests for service, and other like materials of Cable Operator where related to compliance with the terms of this Ordinance. Where such records are maintained at another office of Cable Operator outside the City, Cable Operator shall promptly obtain such records and make them available at its office in the City for inspection. Upon proper request by Cable Operator, information obtained during such an inspection shall be treated as confidential, making it available only to those persons who must have access to perform their duties on behalf of the City, including but not limited to the Department of Finance, the Legal Department and Council members, if it is proprietary in nature or within the definitions of closed records contained within the Virginia Open Meetings Act, 2.1340, et seq. of the Code of Virginia, 1950, as amended. To the extent any federal requirements for privacy applies to the information to be submitted, said law shall control. (b) Communications with Regulatory Agencies: tc \l 2 "(b) Communications with Regulatory Agencies" Copies of all petitions, applications, communications and reports submitted by Cable Operator or on behalf of or relating to Cable Operator to the FCC, Securities and Exchange Commission, or any other federal or state regulatory commission or agency having jurisdiction in respect to any matters affecting the System authorized pursuant to this Franchise shall also be submitted upon request to the City. Copies of responses from the regulatory agencies to Cable Operator shall likewise be furnished to the City upon request. (c) Annual Report: tc \l 2 "(c) Annual Report" On or before April1 of each year during the term of this Ordinance, excluding the year in which the Ordinance becomes effective, Cable Operator shall file with the City a copy of its most recent operation and system performance. The following information regarding the System shall at least be provided: (1) A current gross revenue statement for the immediately preceding fiscal year certified by a financial officer or Cable Operator. (2) The most recent S.E.C. Form10K, filed by the Cable Operator if such filing is required to be made by Cable Operator. (3) A description of all tiers or levels of service being offered together with a description of any changes made in any service during the reporting year. (4) A compilation setting for the results of any Subscriber survey. (5) A current copy of the Subscriber service information. (6) A current list of names and addresses of each principal. For the purposes of this requirement, the term principal means any person, firm, corporation, partnership or joint venture, other entity who or which owns or controls one percent (1%) or more of the voting stock (or any equivalent interest of a partnership or joint venture of Cable Operator), regardless of the ownership of same. (7) A compilation summarizing the Complaints received during the reported year, by category, number of each category, and a discussion of any unresolved Complaints. (8) A description of how payperview programming is made available to Basic Service only Subscribers. (d) Additional Reports: tc \l 2 "(d) Additional Reports" Cable Operator shall prepare and furnish to the City, at the times and in the form prescribed, such additional reports with respect to its operations, affairs, transactions or property, which are reasonably necessary for the administration and enforcement of this Ordinance. (e) Maps: tc \l 2 "(e) Maps" Cable Operator shall maintain on file with the City at all times a current map or set of maps to scale showing the System and all equipment installed or in place in streets and other public places. The maps shall be updated on a semiannual basis if changes have been made. 15. seq level1 \h \r0 seq level2 \h \r0 MISCELLANEOUS PROVISIONS tc "15. MISCELLANEOUS PROVISIONS" \f C \l 1 (a) Binding Acceptance: tc \l 2 "(a) Binding Acceptance" Upon acceptance this Ordinance shall bind and benefit the parties hereto and their respective heirs, beneficiaries, administrators, executors, receivers, trustees, and the promises and obligations herein shall survive the expiration date hereof. (b) Severability: tc \l 2 "(b) Severability" (1) If any term, condition, or provision of this Ordinance shall, to any extent, be held to be invalid or unenforceable, the remainder hereof shall be valid in all other respects and continue to be effective. In the event of a subsequent change in Applicable Law so that the provision which had been held invalid is no longer invalid, said provision shall thereupon return to full force and effect without further action by the Locality and shall thereafter be binding on the Cable Operator and the Locality. (2) If the Cable Operator believes that the terms of this Ordinance or any Locality law or regulation conflict with any state or federal law or regulation, the Cable Operator shall notify the Locality Manager immediately upon learning of the conflict. (c) Compliance with Federal and State Laws: tc \l 2 "(c) Compliance with Federal and State Laws"The Cable Operator shall comply with all applicable federal, state, and local laws and regulations. (d) Each Party Bears Its Own Costs: tc \l 2 "(d) Each Party Bears Its Own Costs"Unless otherwise expressly provided in this Ordinance, all acts that the Cable Operator is required to perform must be performed at the Cable Operators own expense. Unless otherwise expressly provided in this Ordinance, all acts that the Locality is required to perform must be performed at the Localitys own expense. (e) Force Majeure: tc \l 2 "(e) Force Majeure"The Cable Operator shall not be deemed in default of provisions of this Ordinance or Applicable Law where such default is due to Force Majeure, provided that the Cable Operator takes immediate and diligent steps to bring itself back into compliance and to comply as soon as possible under the circumstances with the Franchise without unduly endangering the health, safety, and integrity of the Cable Operator's employees or property, or the health, safety, and integrity of the public, Public Rights-of-Way, public property, or private property. (f) Third Party Beneficiaries: tc \l 2 "(f) Third Party Beneficiaries"The Locality and the Cable Operator acknowledge and agree that no one is a third-party beneficiary of the Franchise granted under this Ordinance. (g) No Evasion: tc \l 2 "(g) No Evasion"The Cable Operator shall not take any action to evade any provision of this Ordinance. This provision shall be read to prohibit, among other things, the Cable Operator from requiring any Subscriber to waive any right (including without limitation privacy rights) as a condition of obtaining service. (h) Governing Law: tc \l 2 "(h) Governing Law"This Franchise Ordinance shall be governed in all respects by the law of the Commonwealth of Virginia. (i) Notices: tc \l 2 "(i) Notices"Unless otherwise expressly stated herein, notices required under this Franchise Ordinance shall be mailed first class, postage prepaid, to the addressees below. Each party may change its designee by providing written notice to the other party. (1) Notices to the Cable Operator shall be mailed to: Cavalier IP TV, LLC 2134 W. Laburnum Avenue Richmond, VA 23227 Attn.: Brad Evans, CEO with a copy to: Cavalier IP TV, LLC 2134 W. Laburnum Avenue Richmond, VA 23227 Attn.: General Counsel Notices to the Locality shall be mailed to: City of Hampton Law Department 22 Lincoln Street Hampton, VA 23669 Attn: City Attorney (2) The Cable Operator shall at all times keep the Locality advised as to which individual(s) are authorized to act on behalf of the Cable Operator and whose acts will be considered to bind the Cable Operator. (j) Time of Essence: tc \l 2 "(j) Time of Essence"In determining whether the Cable Operator has substantially complied with this Ordinance, the parties agree that time is of the essence. (k) Captions and References: tc \l 2 "(k) Captions and References"The captions and headings of sections throughout this Ordinance are intended solely to facilitate reading and reference to the sections and provisions of this Ordinance. Such captions shall not affect the meaning or interpretation of this Ordinance. (l) Understanding and Consent: tc \l 2 "(l) Understanding and Consent"The grant of this Ordinance and Cable Operators acceptance thereof is freely and voluntarily given by each of the parties, without any duress or coercion, and after each party has consulted with its counsel. Each party and its counsel have participated fully in the review and revision of this Ordinance, and any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in interpreting this Ordinance. Each party hereto has carefully and completely read all of the terms and provisions of this Ordinance, and acknowledges that, to the best of its knowledge, each provision is lawful and enforceable. 16. ACCEPTANCE tc "16. ACCEPTANCE" \f C \l 1 (a) Effective Date: tc \l 2 "(a) Effective Date" This Ordinance shall be signed by the Mayor or acting Mayor and attested by the City Clerk. The Ordinance shall be published in accordance with the requirements of the City and Applicable Law and shall take effect retroactively to December15, 2006, unless within thirty (30) days after adoption by City, Cable Operator has failed to provide its written acceptance to the City or has notified City that it is withdrawing its request for an Ordinance Cable Franchise and it has not commenced construction or the offering of its Cable Service in City. (b) Time of Acceptance: tc \l 2 "(b) Time of Acceptance" (1) In the event Cable Operator has not furnished City with its written acceptance within or has notified City of its request to withdraws the request it made for an Ordinance Cable Franchise as required for acceptance described in Section16(a), this Ordinance and all of the rights, duties, and responsibilities of City and the Franchise granted by this Ordinance shall be null and void. (2) Cable Operator shall be bound by all the terms and conditions herein. Cable Operator shall provide all services and offerings specifically set forth herein to provide Cable Operator Services within the City. (3) Cable Operator shall deliver to the City a certified resolution evidencing its power and authority to comply with this Ordinance with its written acceptance as required in Section16(a). Additionally, at this same time, Cable Operator shall deliver to City all payments required by its Application and such bonds and insurance certificates as may also be required by this Ordinance. Such documents shall also describe the officers authorized to act on behalf of Cable Operator. PASSED AND ADOPTED this ____ day of __________________, 2007. CITY OF HAMPTON, VIRGINIA By Date Mayor EXHIBIT A tc "EXHIBIT A. INITIAL SERVICE AREAS" \f C \l 1 INITIAL SERVICE AREAS (NOTE: ATTACH MAP PROVIDED BY CAVALIER) EXHIBIT B tc "EXHIBIT B. FRANCHISE FEE WORKSHEET" \f C \l 1 FRANCHISE FEE WORKSHEET SUMMARY OF GROSS REVENUES SUBJECT TO FRANCHISE FEE FOR: HAMPTON, VIRGINIA FOR YEAR: ________ REVENUE SOURCEFIRST QUARTER SECOND QUARTERTHIRD QUARTER FOURTH QUARTER TOTAL Basic Cable ServiceInstallation Charge Expanded Basic ServicePremium ServicesPay ServicePay Per ViewGuide RevenueNet Advertising Revenue Home Shopping CommissionsOn DemandDigital VideoDigital Video Recorder Other RevenueEquipment RentalBad Debt AllowanceREVENUEFee Calculated FEE  This Exhibit shall be annually changed to reflect current services subject to Franchise Fees and as permitted to the maximum extent permissible by valid Applicable Law and the Franchise Ordinance. EXHIBIT C tc "EXHIBIT C. CUSTOMER SERVICE STANDARDS" \f C \l 1 CUSTOMER SERVICE STANDARDS 1. Customer Service Generally. (a) These standards sets forth minimum customer service standards that a Cable Operator must satisfy. In addition, the Cable Operator shall at all times satisfy any additions or stricter requirements established by FCC regulations, or other applicable federal, state, or local law or regulation, as the same may be adopted or amended from time to time. (b) Each Cable Operator shall maintain an office at a convenient location that shall be open during normal business hours to allow subscribers to request service, pay bills, and conduct other business. Normal business hours means those hours during which most similar businesses in the community are open to serve customers, i.e., Monday through Friday, 9:00 a.m. to 5:00 p.m. In all cases, normal business hours must include some evening hours, at least one (1) night per week, and some weekend hours. 2. Telephone Answering. (a) Trained company representatives shall be available to respond to customer telephone inquiries during normal business hours. (b) At least one (1) person in responsible charge of a Cable Operators operations shall be available by local telephone during such hours as the business office is closed, and the telephone number of such person shall be supplied in advance to the Localitys designated administrator and to the Localitys police and fire divisions. Further, an access line will be available twentyfour (24) hours per day, seven (7) days per week with afterhour connection for messages to be responded to by a trained representative the next business day. (c) A Cable Operator shall use its best efforts to comply with the following standards. A Cable Operator shall not be subject to liquidated damages for noncompliance with these standards if, under normal operating conditions, the standards are met at least ninety percent (90%) of the time, measured quarterly. For purposes of this calculation and all pertinent reports, a Cable Operator may not omit data for conditions other then normal operating conditions unless the Cable Operator has explained to the Locality the time period and the conditions involved, and the Locality has approved that classification. (1) Telephone answering time shall not exceed thirty (30) seconds, and the time to transfer the call to a customer service representative (including hold time) shall not exceed an additional thirty (30) seconds. (2) A customer will receive a busy signal less than three percent (3%) of the time. (d) A Cable Operator shall obtain and maintain sufficient telephone lines and staffing to meet the requirements of this article. A Cable Operator shall not block incoming calls or otherwise use equipment or procedures that would result in an inaccurate account of all calls made to the Cable Operator; any such practice shall constitute fraud and shall be an independent violation of the customer service standards. 3. Installations and Service Calls. (a) A Cable Operator shall respond to service calls and complaints promptly. A Cable Operator shall use its best efforts to comply with the following standards. A Cable Operator shall not be subject to liquidated damages for noncompliance with these standards if, under normal operating conditions, the standards are met at least ninety-five percent (95%) of the time, measured quarterly. (1) A Cable Operator shall commence repairs for service interruptions affecting more than one hundred (100) subscribers within two (2) hours after the Cable Operator becomes aware of the interruption, including Saturdays, Sundays, and legal holidays. (2) A Cable Operator shall commence repairs for all other service interruptions within twenty-four (24) hours after the Cable Operator becomes aware of the interruption, including Saturdays, Sundays, and legal holidays. (3) A Cable Operator shall commence work on all requests for service other than service interruptions by the next business day after it receives the request for service or otherwise becomes aware of the need for service. (b) All service for which a completion time is not otherwise specified must be completed within three (3) days from the date of the initial request, unless, for reasons beyond the Cable Operator's control, the work could not be completed in those time periods even with the exercise of all due diligence, in which case the Cable Operator shall complete the work in the shortest time possible. The failure of a Cable Operator to hire sufficient staff or to properly train its staff shall not justify a Cable Operator's failure to comply with this provision. (c) The Cable Operator shall investigate subscriber complaints referred by the Locality within five (5) business days. The Cable Operator shall notify the Locality of those matters that necessitate an excess of five (5) business days to resolve, but those matters must be resolved within fifteen (15) days of the initial complaint. The Locality may require reasonable documentation to be provided by the Cable Operator to substantiate the request for additional time to resolve the problem. For purposes of this Section, resolve means that the Cable Operator shall perform those actions, which, in the normal course of business, are necessary to investigate the Customers complaint and advise the Customer of the results of that investigation. (d) Appropriate records shall be made of service calls, showing when and what corrective action was completed. Such records shall be available to the Locality during normal business hours and retained for not less than three (3) years. (e) A Cable Operator shall perform service calls, installations, and disconnects at least from 8:00 a.m. to 6:00 p.m. Monday through Friday and 8:00 a.m. to 5:00 p.m. Saturday. In addition, maintenance service capability enabling the prompt location and correction of major system malfunctions shall be available seven (7) days a week, twenty-four (24) hours a day, including Saturdays, Sundays, and holidays. (f) The appointment window for installations, service calls, and other installation activities shall be either a specific time or, at maximum, a four (4) hour time block during the time from 8:00 a.m. to 6:00 p.m. Monday through Friday and 8:00 a.m. to 5:00 p.m. Saturday. Where a subscriber is unable to arrange for a service call or installation during that period, a Cable Operator shall also schedule service and installation calls at reasonable times outside that period. (g) A Cable Operator may not cancel an appointment with a subscriber after 6:00 p.m. on the business day preceding the appointment, unless the appointment is for a Monday, in which case the Cable Operator may not cancel after 5:00 p.m. on Saturday. If a Cable Operator's representative is running late for an appointment with a subscriber and will not be able to keep the appointment as scheduled, the subscriber will be contacted, and the appointment rescheduled, as necessary, at a time which is reasonably convenient for the subscriber. (h) A Cable Operator shall afford subscribers a three (3)-day right of rescission for ordering service over the cable system, except that such right of rescission shall end upon initiation of installation, whether physically or electronically, on the subscribers premises or upon provision of service to the subscriber. (i) Under normal operating conditions, billing inquiries and requests for service, repair, and maintenance not involving service interruptions must be acknowledged by a trained customer service representative within twenty-four (24) hours, or prior to the end of the next business day, whichever is earlier. A Cable Operator shall respond to all other inquiries within five (5) business days of the inquiry. (j) Except as federal law may specifically require, no charge shall be made to the subscriber for repairs or maintenance of Cable Operator-owned equipment or facilities, except for the cost of repairs to the Cable Operator's equipment or facilities where it can be shown that the equipment or facility was damaged by a subscriber. (k) With regard to mobility-limited subscribers, upon subscriber request, a Cable Operator shall arrange for pickup and/or replacement of converters or other Cable Operator equipment at the subscriber's address or by a satisfactory equivalent (such as the provision of a postage-prepaid mailer). (l) All personnel, agents and representatives of a Cable Operator, including subcontractors that have occasion to deal directly with subscribers in the field shall carry photo identification badges, to be displayed upon request, when acting on behalf of the Cable Operator. (m) A Cable Operator shall provide advance notice, in light of the circumstances, prior to entry whenever desiring to enter any private property within the Locality. Work performed in easements and rights-of-way during system outage periods is exempted. 4. Notice. (a) When a subscriber is connected or reconnected to a cable system, and at any time upon request, the Cable Operator shall provide each subscriber with written information concerning the following. Copies of all such materials provided to subscribers shall also be provided to the Locality. (1) A written description of products and services offered, including a schedule of rates and charges, a list of channel positions, and a description of programming services, options, and conditions; (2) A written description of the Cable Operator's installation and service maintenance policies, delinquent subscriber disconnect and reconnect procedures, and any other of its policies applicable to its subscribers; (3) Notice regarding subscribers' privacy rights pursuant to 47 U.S.C. 551; (4) Notice regarding subscribers rights relating to home wiring. (b) The Cable Operator shall provide to all subscribers and to the Locality at least thirty (30) days' written notice before the implementation of any change in rates, services, channel positions, business hours, or legal holidays. Such notice shall state the precise amount of any rate change and briefly explain in accurate and readily understandable fashion the cause of the rate change (e.g., inflation, changes in external costs or the addition/deletion of channels). When the change involves the addition or deletion of channels, each channel added or deleted must be separately identified. (c) All Cable Operator promotional materials, announcements, and advertising of residential cable service to subscribers and the general public, where price information is listed in any manner, shall clearly and accurately disclose price terms. In the case of pay-per-view or pay-per-event programming, all promotional materials must clearly and accurately disclose price terms and in the case of telephone orders, a Cable Operator shall take appropriate steps to ensure that price terms are clearly and accurately disclosed to potential customers before the order is accepted. 5. Billing. (a) Bills shall be clear, concise, and understandable, and shall not be such as to mislead a reasonable subscriber as to any matter reflected on the bill. Bills must be fully itemized with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills shall clearly delineate all activity during the billing period, including optional charges, rebates, and credits. (b) Refund checks or credits to subscribers shall be issued promptly, but no later than the later of (1) The subscriber's next billing cycle, or thirty (30) days, following resolution of the refund request, whichever is earlier; or (2) The return of all equipment supplied by the Cable Operator, if service is terminated. (c) A Cable Operator's first billing statement after a new installation or service change shall be prorated as appropriate and shall reflect any security deposit. (d) Credits (1) The account of any subscriber shall be credited a prorated share of the monthly charge for service, upon the subscriber's reasonably prompt request, whenever: (A) The subscriber is without service for a period that exceeds twelve (12) hours during any twenty-four (24) -hour period; or (B) Service is substantially impaired for any reason for a period that exceeds twelve (12) hours during any twenty-four (24) -hour period. (2) The credits required under subsection (d)(1) shall not apply if: (A) It can be documented that a subscriber seeks a refund for an outage or impairment that the subscriber caused; or (B) A planned outage occurred between the hours of 12:00 midnight and 6:00a.m. (3) Credits for service shall be issued no later than the subscriber's next billing cycle following the determination that a credit is warranted. (e) No charge may be made for any service or product that the subscriber has not affirmatively indicated it wishes to receive. Payment of the regular monthly bill does not in and of itself constitute such an affirmative indication. 6. Disconnection. (a) Any security deposit and/or other funds due the subscriber shall be refunded on disconnected accounts after any customer premises equipment provided by the Cable Operator has been recovered by the Cable Operator. The refund must be made within thirty (30) days or by the end of the next billing cycle, whichever is earlier, from the date disconnection was requested (or, if later, the date on which any customer premises equipment provided by the Cable Operator is returned). (b) A Cable Operator shall provide at least three (3) days written notice prior to discontinuance of service due to nonpayment and shall not terminate for nonpayment where the payment relates to service not yet provided. Where a Cable Operator has improperly discontinued service, it shall provide free reconnection. (c) A Cable Operator may immediately disconnect a subscriber if the subscriber is damaging or destroying the Cable Operator's cable system or equipment. After disconnection, the Cable Operator shall restore service after the subscriber provides adequate assurance that it has ceased the practices that led to disconnection, and paid all proper fees and charges, including any reconnect fees and amounts owed the Cable Operator for damage to its cable system or equipment. (d) A Cable Operator may also disconnect a subscriber that causes signal leakage in excess of federal limits. Disconnection may be effected after five (5) days' written notice to the subscriber, if the subscriber fails to take steps to correct the problem. Alternatively, a Cable Operator may disconnect a subscriber without notice where signal leakage is detected originating from the subscriber's premises in excess of federal limits, provided that the Cable Operator shall immediately notify the subscriber of the problem and, once the problem is corrected, reconnect the subscriber. 7. Customer Service Other. A Cable Operator shall keep such records as are necessary to show compliance with these customer service standards and FCC customer service standards. For purposes of these customer service standards the phrase normal operating conditions means those Cable Services or conditions that are within the control of Cable Operator. Those conditions, which are ordinarily within the control of Cable Operator, include, but are not limited to, special promotions, pay-per-view events; rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the System. Those conditions that are not within the control of Cable Operator include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, vandalism, public works projects for which no advanced notice is given, and severe or unusual weather conditions.     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X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%X%̕                        !!8@0(  B S  ? _Ref425997037 _Toc132170701 DEFINITIONS _Toc162681904 _Toc132170702 _Toc162681905 _Toc162681906 _Toc162681907 _Toc114031129 _Toc162681908 _Toc162681909 _Toc162681910 _Toc162681911 _Toc162681912 _Toc162681913 _Toc162681914 _Toc162681915 _Toc162681916 _Toc162681917 _Toc162681918 _Toc162681919 _Toc162681920 _Toc162681921 _Toc162681922 _Toc162681923 _Toc162681924 _Toc162681925 _Toc162681926 _Toc162681927 _Toc162681928 _Toc162681929 _Toc132170723 _Toc148942815 _Toc162681930 _Ref12095061 _Toc132170724 _Toc148936809 _Toc162681931 _Ref6282898 _Toc132170725 _Toc148936810 _Toc148942817 _Toc162681932 _Toc147653608 _Toc148936811 _Toc147653609 _Toc148936812 _Ref425997968 _Toc132170726 _Toc148936813TERM _Toc148942818 _Toc162681933 _Toc132170727 _Toc148936814 _Toc148942819 _Toc162681934 _Ref11649537 _Toc132170728 _Toc148936815 _Toc148942820 _Toc162681935 _Toc132170729 _Toc148936816 _Toc132170730 _Toc132170731 _Toc148936818 _Toc148942823 _Toc162681936 _Toc147653616 _Toc148936819 _Toc147653617 _Toc148936820 _Toc132170733 _Toc148936821 _Toc148942824 _Toc162681937 _Toc147653619 _Toc148936822 _Toc147653620 _Toc148936823 _Toc132170734 _Toc148936824 NO_RECOURSE _Toc148942825 _Toc162681938 _Ref425996271 _Toc132170735 _Toc148942826 _Toc162681939 _Toc132170736 _Toc148942827 _Toc162681940 _Toc132170737 _Toc148936825 _Toc148942828 _Toc162681941 _Ref131946740 _Toc132170738 _Toc148936826 _Toc148942829 _Toc162681942 _Toc147653626 _Toc148936827 _Toc147653627 _Toc148936828 _Toc132170739 _Ref119840677 _Toc132170740 _Toc148942831 _Toc162681943 _Ref112494530 _Toc132170741 _Toc148936832 _Toc148942832 _Toc162681944 _Ref113351981 _Toc147653634 _Toc147653635 _Toc148936834 _Ref113351983 _Toc147653636 _Toc148936835 _Toc147653637 _Toc132170742 _Toc148936837 _Toc148942833 _Toc162681945 _Ref425997241 _Toc132170743SYSTEM_FACILITIES _Toc148942834 _Toc162681946 _Ref119840681 _Toc132170744 _Toc148936838 _Toc148942835 _Toc162681947 _Toc147653641 _Toc148936839 _Toc147653643 _Toc148936841 _Toc148936842 _Toc147653644 _Toc147653645 _Toc148936843 _Toc147653646 _Toc148936844 _Toc162681948 _Toc162681949 _Toc132170745 _Toc148936850 _Toc162681950 _Ref119840685 _Toc132170746 _Toc148936851 _Toc162681951 _Toc132170747 _Toc148936852 _Toc162681952 _Toc147653655 _Toc148936853 _Toc147653656 _Toc148936854 _Ref119840688 _Toc132170748 _Ref119840691 _Toc132170749 _Toc148936856 _Toc162681953 _Toc132170750 _Toc162681954 _Toc162681955 _Toc162681956 _Toc162681957 _Toc162681958 _Ref425997248 _Toc132170753ACCESS_CHANNELS___FACILITIES _Toc148942843 _Toc162681959 _Ref425997201 _Toc132170754 _Toc148936870 _Toc148942844 _Toc162681960 _Ref425996978 _Ref112497983 _Toc147653674 _Toc148936871 _Toc162681961 _Ref112312434 _Toc147653675 _Toc148936872 _Toc162681962 _Toc147653676 _Toc148936873 _Toc147653686 _Toc148936881 _Toc114031130 _Toc162681963 _Ref425998588 _Ref112493296 _Toc132170758 _Toc148936883 _Toc148942846 _Toc162681964 _Ref425997124 _Ref112493172 _Toc147653689 _Toc148936884 _Toc148936885 _Toc147653690 _Toc132170760 _Toc148936886 _Toc162681965 _Toc162681966 _Toc162681967 _Toc162681968 _Toc162681969 _Toc132170761 FRANCHISE_FEE _Toc148942848 _Toc162681970 _Toc132170762 _Toc148936887 _Toc148942849 _Toc162681971 _Ref112500351 _Toc132170763 _Toc148936888 _Toc148942850 _Toc162681972 _Ref11643390 _Toc132170764 _Toc148936889 _Toc148942851 _Toc162681973 _Toc132170765 _Toc148936890 _Toc148942852 _Toc162681974 _Toc147653697 _Toc148936891 _Toc147653698 _Toc148936892 _Toc147653699 _Toc148936893 _Toc132170766 _Toc148936894 _Toc148942853 _Toc162681975 _Toc147653701 _Toc148936895 _Toc147653702 _Toc148936896 _Toc148942854 _Toc162681976 _Toc132170767 _Toc148942855 _Toc162681977 _Toc140473849 _Toc148942856 _Toc162681978 _Toc140473850 _Toc148942857 _Toc162681979 _Toc78079461 _Toc140473851 _Toc148942858 _Toc162681980 _Toc140473852 _Toc148942859 _Toc162681981 _Toc521976806 _Toc63835816 _Toc140473853 _Toc148942860 _Toc162681982 _Toc140473854 _Toc148942861 _Toc162681983 _Toc140473855 _Toc148942862 _Toc162681984 _Toc140473856 _Toc148942863 _Toc162681985 _Toc140473857 _Toc148942864 _Toc162681986 _Toc140473858 _Toc148942865 _Toc162681987 _Toc140473859 _Toc148942866 _Toc162681988 _Toc132170772 _Toc148942867 _Toc162681989LETTER_OF_CREDIT _Toc148942868 _Toc162681990 _Toc147653712 _Toc147653713 _Toc147653714 _Toc147653715 _Ref104788377 _Toc147653716 _Toc132170774 _Toc148942869 _Toc162681991 _Toc147653718 _Toc147653719 _Toc147653720 _Toc147653721 _Toc147653722 _Toc132170775 _Toc148942870 _Toc162681992 _Ref112503406 _Toc147653724 _Toc147653725 _Toc148936897 _Toc147653726 _Toc148936898 _Ref113442278 _Toc147653727 _Toc148936899 _Toc147653728 _Toc148936900 _Toc147653729 _Toc148936901 _Toc147653730 _Toc148936902 _Toc148936903 _Ref425996640 _Toc132170776 _Toc148942871 _Toc162681993 _Toc147653732 _Toc148936904 _Ref112309366 _Toc147653733 _Toc148936905 _Toc147653734 _Toc148936906 _Toc147653735 _Toc148936907 _Toc147653736 _Toc148936908 _Toc132170777 _Toc148942872 _Toc162681994 _Toc162681995 _Toc162681996 _Toc162681997 _Toc162681998 _Toc162681999 _Toc162682000 _Toc132170778 _Toc148942873 _Toc162682001 _Toc132170779 _Toc148936909 _Toc162682002 _Ref425997774 _Toc132170780 _Toc148936910 SEVERABILITY _Toc148942875 _Toc162682003 _Toc147653741 _Toc148936911 _Ref426002295 _Toc132170781 _Toc148936912 _Toc148942876 _Toc162682004 _Ref425996601 _Toc409775135 _Toc420838130 _Toc443971858 _Toc132170782 _Toc148936913 _Toc148942877 _Toc162682005 _Toc132170783 _Toc148936914 FORCE_MAJEURE _Toc148942878 _Toc162682006 _Toc132170784 _Toc148936915 _Toc148942879 _Toc162682007 _Toc132170785 _Toc148936916 _Toc148942880 _Toc162682008 _Toc132170786 _Toc148936917 _Toc148942881 _Toc162682009 _Toc132170787 _Toc148936918 _Toc148942882 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