HomeMy WebLinkAboutVerizon Franchise Agreement CABLE FRANCHISE AGREEMENT
BETWEEN THE
CITY OF LAKE ELSINORE
AND
VERIZON CALIFORNIA INC.
AM,
2006
al
t�
Lake Elsinore
Contract/Agreement No. 1917
TABLE OF CONTENTS
ARTICLE PAG E
1. DEFINITIONS................................................................................................................... 2
2. GRANT OF AUTHORITY; LIMITS AND RESERVATIONS ....................................... 7
3. PROVISION OF CABLE SERVICE................................................................................ 9
4. SYSTEM OPERATION............................................................ ................................... 10
5. SYSTEM FACILITIES ................................................................. .............................. 11
6. PEG SERVICES..........................................................................................................._..
7. FRANCHISE FEES......................................................................................................... 13
8. CUSTOMER SERVICE.................................................................................................. 14
9. REPORTS AND RECORDS........................................................................................... 14
10. INSURANCE AND INDEMNIFICATION.................................................................... I i
11. TRANSFER OF FRANCHISE........................................................................................ 17
12. RENEWAL OF FRANCHISE......................................................................................... 17
13. ENFORCEMENT AND TERMINATION OF FRANCHISE........................................ 17
14. MISCELLANEOUS PROVISIONS................................................................................21
EXHIBIT A- SERVICE AREAS 2
EXHIBIT B -MUNICIPAL BUILDINGS TO BE PROVIDED FREE CABLE
SERVICE.........................................................................................................................26
EXHIBIT C -CONSUMER PROTECTION AND SERVICE STANDARDS ............. 28
Lake Elsinore ]
THIS CABLE FRANCHISE AGREEMENT (the "Franchise" or "Agreement") is entered
into by and between the City of Lake Elsinore, a duly organized municipal corporation under the
applicable laws of the State of California (the Local Franchising Authority or "LFA") and
Verizon California Inc., a corporation duly organized under the applicable laws of the State of
California(the "Franchisee").
WHEREAS, LFA wishes to grant Franchisee a nonexclusive franchise to construct,
install, maintain, extend and operate a Cable System (as hereinafter defined) and to offer Cable
Services (as hereinafter defined) in the Franchise Area as designated in this Franchise; and
WHEREAS, LFA is a local "franchising authority" in accordance with Title VI of the
Communications Act (see 47 U.S.C. §522(10)) and is authorized to grant one or more
nonexclusive cable franchises pursuant to California Government Code § 53066 and Chapter
5.40 of the City of Lake Elsinore Municipal Code; and
WHEREAS, Franchisee is in the process of installing a Fiber to the Premise
Telecommunications Network ("FTTP Network") in the Franchise Area for the transmission of
Non-Cable Services (as hereinafter defined) pursuant to authority granted by the State of
California; and
WHEREAS, the FTTP Network will occupy the Public Rights-of-Way within LFA, and
Franchisee desires to use portions of the FTTP Network once installed to provide Cable Services
in the Franchise Area; and
WHEREAS, LFA has identified the future cable-related needs and interests of the
community, has considered the financial, technical and legal qualifications of Franchisee, and
has determined that Franchisee's plans for its Cable System are adequate, and has considered, at
a duly noticed public hearing and in accordance with Section 53066.3, California Government
Code: (a) Whether there will be significant positive or negative impacts on LFA; (b) Whether
there will be an unreasonable adverse economic or aesthetic impact upon public or private
property within the Franchise Area; (c) Whether there will be an unreasonable disruption or
inconvenience to existing users, or any adverse effect on future use, of utility poles, public
easements, and the Public-Rights-of-Way contrary to the intent of Section 767.5 of the Public
Utilities Code; (d) Whether the franchise applicant has the technical and financial ability to
perform; (e) Whether there is any impact on the franchising authority's interest in having
universal Cable Service; (f) Whether other societal interests generally considered by franchising
authorities will be met; (g) Whether the operation of an additional cable television system in
LFA is economically feasible; and (h) Such other additional matters, both procedural and
substantive, as LFA may determine to be relevant; and
WHEREAS, LFA has found Franchisee to be financially, technically and legally
qualified to operate the Cable System; and
WHEREAS, LFA has determined that, in accordance with the applicable provisions of
Title V of the City of Lake Elsinore Municipal Code and Section 53066.3 of the California
Government Code, the grant of a nonexclusive franchise to Franchisee is consistent with the
public interest; and
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WHEREAS, LFA and Franchisee have reached agreement on the terms and conditions
set forth herein and the parties have agreed to be bound by those terms and conditions.
NOW, THEREFORE, in consideration of LFA's grant of a franchise to Franchisee.
Franchisee's promise to provide Cable Service to the residents of the Franchise/Service Area of
LFA pursuant to and consistent with Title V of the City of Lake Elsinore Municipal Code,
pursuant to the terms and conditions set forth herein, the promises and undertakings herein, and
other good and valuable consideration, the receipt and the adequacy of which are hereby
acknowledged,
THE SIGNATORIES DO HEREBY AGREE AS FOLLOWS:
1. DEFINITIONS
Except as otherwise provided herein, the definitions and word usages set forth in the
Cable Law are incorporated herein and shall apply in this Agreement. In addition, the following
definitions shall be controlling:
1.1. Access Channel: A video Channel, which Franchisee shall make available
to LFA without charge for non-commercial public, educational, or governmental use for the
transmission of Video Programming as directed by LFA.
1.2. Affiliate: Any Person who, directly or indirectly, owns or controls, is
owned or controlled by, or is under common ownership or control with, Franchisee.
1.3. Basic Service: Any service tier, which includes the retransmission of local
television broadcast signals as well as the PEG Channels required by this Franchise.
1.4. Cable Law: Ordinance No. 840 titled "An Ordinance Of The City Council
Of The City Of Lake Elsinore Amending Chapter 5.40 Relating To Community Antenna
Television Systems" and Ordinance No. 855 titled "An Ordinance of the City of Lake Elsinore,
California Providing For The Granting of Franchises For Community Antenna Television
Systems; Providing Terms And Conditions For The Operation Of Such Community Antenna
Television Systems And Fees Therefor," all as codified in Chapter 5.40 of the City of Lake
Elsinore Municipal Code, to the extent authorized under and consistent with federal and state
law.
1.5. Cable Service or Cable Services: Shall be defined herein as it is defined
under Section 602 of the Communications Act, 47 U.S.C. § 522(6).
1.6. Cable System or System: Shall be defined herein as it is defined under
Section 602 of the Communications Act, 47 U.S.C. § 522(7), meaning Franchisee's facility,
consisting of a set of closed transmission paths and associated signal generation, reception, and
control equipment that is designed to provide Cable Service which includes video programming
and which is provided to multiple Subscribers within the Service Area. The Cable System shall
be limited to the optical spectrum wavelength(s), bandwidth or future technological capacity that
is used for the transmission of Cable Service directly to Subscribers within the Franchise/Service
Lake Elsinore 2
Area and shall not include the tangible network facilities of a common carrier subject in whole or
in part to Title II of the Communications Act or of an Information Services provider.
1.7. Channel: Shall be defined herein as it is defined under Section 602 of the
Communications Act, 47 U.S.C. § 522(4).
1.8. Communications Act: The Communications Act of 1934, as amended.
1.9. Control: The ability to exercise de facto or de jure control over day-to-
day policies and operations or the management of corporate affairs.
1.10. Educational Access Channel: An Access Channel available for the sole
use of the local public schools and other public educational facilities in the Franchise Area as
specified by LFA.
Exhibit A. 1.11. Extended Service Area: The portion of the Franchise Area as outlined in
1.12. FCC: The United States Federal Communications Commission, or
successor governmental entity thereto.
1.13. Force Majeure: Means delays due to acts of God, war, civil disturbances,
fire, and incidences of terrorism, war or riots, labor strikes, floods, earthquakes, fire, explosions,
epidemics, hurricanes, tornadoes, construction delays due to severe weather, and goverrunental
actions and restrictions, which may arise due to the foregoing conditions or for other similar
causes beyond the control of Franchisee.
1.14. Franchise Area: The incorporated area (entire existing territorial limits)
of LFA and such additional areas as may be included in the corporate (territorial) limits of LFA
during the term of this Franchise.
1.15. Franchisee: Verizon California Inc., and its lawful and permitted
successors, assigns and transferees.
1.16. Government Access Channel: An Access Channel available for the use
solely of LFA and other local governmental entities located in the Franchise Area.
1.17. Grass Revenue: All revenue that Franchisee and its Affiliates (to the
extent that either is acting as a provider of Cable Service authorized by this Franchise) derives
from the operation of Franchisee's Cable System to provide Cable Service in the Service Area,
including but not limited to all Subscriber and customer revenues earned or accrued net of bad
debts including revenue for: (i) Basic Service; (ii) all fees charged to any Subscribers for any .
and all Cable Service provided by Franchisee, including without limitation Cable Service related
program guides, the installation, disconnection or reconnection of Cable Service; revenues from
late or delinquent charge fees; Cable Service related service or repair calls; the provision of
converters, remote controls, additional outlets and/or other Cable Service related Subscriber
premises equipment, whether by lease or otherwise (except sale); (iii) revenues from the sale or
lease of Access Channel(s) or channel capacity; (iv) advertising revenues (as described below);
Lake Elsinore 3
and (v) revenues from home shopping channel providers. Gross Revenue also includes franchise
fees imposed on Franchisee by LFA that are passed through from Franchisee as a line item paid
by Subscribers. Revenue of an Affiliate derived from the Affiliate's provision of Cable Services
shall be Gross Revenue to the extent the treatment of such revenue as revenue of the Affiliate
and not of Franchisee has the intentional or unintentional effect of evading the payment of
Franchise fees that would otherwise be payable to LFA hereunder. Advertising commissions
paid to independent third parties shall not be netted against advertising revenue included in Gross
Revenue. In no event shall revenue of an Affiliate be Gross Revenue of Franchisee if such
revenue is subject to franchise fees to be paid to LFA for Cable Services. Advertising revenue is
based upon the ratio of the number of Subscribers as of the last day of the period for which Gross
Revenue is being calculated to the number of Franchisee's subscribers within all areas covered
by the particular advertising source as of the last day of such period, e.g., Franchisee sells two
ads: Ad "A" is broadcast nationwide; Ad "B" is broadcast only within California. Franchisee has
100 Subscribers in LFA, 500 subscribers in California, and 1000 subscribers nationwide. Gross
Revenue as to LFA from Ad "A" is 10% of Franchisee's revenue therefrom. Gross Revenue as
to LFA from Ad "B" is 20% of Franchisee's revenue therefrom. Gross Revenue shall not
include:
1.17.1. Revenues received by any Affiliate or other Person in exchange for
supplying goods or services used by Franchisee to provide Cable Service over the Cable System;
1.17.2. Bad debts written off by Franchisee in the normal course of its
business, provided, however, that bad debt recoveries shall be included in Gross Revenue during
the period collected;
1.17.3. Refunds, rebates or discounts made to Subscribers or other third
parties;
1.17.4. Any revenues classified, in whole or in part, as Non-Cable
Services revenue under federal or state law including, without limitation, revenue received from
Telecommunications Services; revenue received from Information Services, including, without
limitation, Internet Access service, electronic mail service, electronic bulletin board service, or
similar online computer services; and any other revenues attributed by Franchisee to Non-Cable
Services in accordance with FCC or state public utility regulatory commission rules, regulations,
standards or orders;
1.17.5. Any revenue of Franchisee or any other Person which is received
directly from the sale of merchandise through any Cable Service distributed over the Cable
System, notwithstanding that portion of such revenue which represents or can be attributed to a
Subscriber fee or a payment for the use of the Cable System for the sale of such merchandise,
which portion shall be included in Gross Revenue;
1.17.6. The sale of Cable Services on the Cable System for resale in which
the purchaser is required to collect cable franchise fees from purchaser's customer;
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1.17.7. The sale of Cable Services to customers, which are exempt, as
required or allowed by LFA including, without limitation, the provision of Cable Services to
public institutions as required or permitted herein;
1.17.8. Any tax of general applicability imposed upon Franchisee or upon
Subscribers by a city, state, federal or any other governmental entity and required to be collected
by Franchisee and remitted to the taxing entity (including, but not limited to, sales/use tax, gross
receipts tax, excise tax, utility users tax, public service tax, communication taxes and non-cable
franchise fees);
1.17.9. Any foregone revenue which Franchisee chooses not to receive in
exchange for its provision of free or reduced cost cable or other communications services to any
Person, including without limitation, employees of Franchisee and public institutions or other
institutions designated in the Franchise; provided, however, that such foregone revenue which
Franchisee chooses not to receive in exchange for trades, barters, services or other items of value
shall be included in Gross Revenue;
1.17.10. Sales of capital assets or sales of surplus equipment;
1.17.11. Reimbursement by programmers of marketing costs
incurred by Franchisee for the introduction and promotion of programming; and
1.17.12. Directory or Internet advertising revenue including, but not
limited to, yellow page, white page, banner advertisement and electronic publishing.
1.17.13. Any fees or charges collected from Subscribers or other
third parties for the Annual PEG Grant.
1.18. Information Services: Shall be defined herein as it is defined under
Section 3 of the Communications Act, 47 U.S.C. §153(20).
1.19. Initial Service Area: The portion of the Franchise Area as outlined in
Exhibit A.
1.20. Internet Access: Dial-up or broadband access service that enables
Subscribers to access the Internet.
1.21. Local Franchise Authority (LFA): The City of Lake Elsinore, California
or the lawful successor, transferee, or assignee thereof.
1.22. Non-Cable Services: Any service that does not constitute the provision of
Video Programming directly to multiple Subscribers in the Franchise Area including, but not
limited to, Information Services and Telecommunications Services.
1.23. Normal Business Hours: Those hours during which most similar
businesses in the community are open to serve customers. In all cases, "normal business hours"
must include some evening hours at least one night per week and/or some weekend hours.
Lake Elsinore 5
1.24. Normal Operating Conditions: Those service conditions which are within
the control of Franchisee. Those conditions which are not within the control of Franchisee
include, but are not limited to, natural disasters, civil disturbances, power outages, telephone
network outages, and severe or unusual weather conditions. Those conditions which are within
the control of Franchisee include, but are not limited to, special promotions, pay-per-view
events, rate increases, regular peak or seasonal demand periods, and maintenance or rebuild of
the Cable System. See 47 C.F.R. § 76.309(c)(4)(ii). 0
1.25. PEG Access Channels: Public Access Channel(s), Educational Access
Channel(s) and Governmental Access Channel(s) authorized pursuant to this Agreement in the
Franchise Area.
1.26. Person: An individual, partnership, association, joint stock company,
trust, corporation, or governmental entity.
1.27. Public Access Channel: An Access Channel available for the use solely
by the residents and nonprofit organizations in the Franchise Area.
1.28. Public Rights-of-Way: The surface and the area across, in, over, along,
upon and below the surface of the public streets, roads, bridges, sidewalks, lanes, courts, ways,
alleys, and boulevards, including, public utility easements and public lands and waterways used
as Public Rights-of-Way, as the same now or may thereafter exist, which are under the
jurisdiction or control of LFA. Public Rights-of-Way do not include the airwaves above a right-
of-way with regard to cellular or other nonwire communications or broadcast services.
1.29. Service Area: All portions of the Franchise Area where Cable Service is
being offered, including the Initial Service Area, the Extended Service Area, and any Additional
Service Areas, as set forth in Exhibit A.
1.30. Service Date: The date that the Franchisee first provides Cable Service on
a commercial basis directly to multiple Subscribers in the Franchise Area. The Franchisee shall
memorialize the Service Date by notifying the LFA in writing of the same, which notification
shall become a part of this Franchise.
1.31. Service Interruption: The loss of picture or sound on one or more cable
channels.
1.32. Subscriber: A Person who lawfully receives Cable Service of the Cable
System with Franchisee's express permission.
1.33. Telecommunications Facilities: Franchisee's existing Telecommunications
Services and Information Services facilities and its FTTP Network facilities.
1.34. Telecommunication Services: Shall be defined herein as it is defined
under Section 3 of the Communications Act, 47 U.S.C. § 153(46).
1.35. Title H. Title II of the Communications Act.
Lake Elsinore 6
1.36. Title VI. Title VI of the Communications Act.
1.37. Transfer of the Franchise:
1.37.1. Any transaction in which:
1.37.1.1. an ownership or other interest in Franchisee is
transferred, directly or indirectly, from one Person or group of Persons to another Person or
group of Persons, so that control of Franchisee is transferred; or
1.37.1.2. the rights held by Franchisee under the Franchise
are transferred or assigned to another Person or group of Persons.
1.37.2. However, notwithstanding Sub-subsections 1.37.1.1 and 1.37.1.2
above, a Transfer of the Franchise shall not include: transfer of an ownership or other interest in
Franchisee to the parent of Franchisee or to another Affiliate majority owned by Franchisee or
any of Franchisee's Affiliates or Franchisee's parent; transfer of an interest in the Franchise or
the rights held by Franchisee under the Franchise to the parent of Franchisee or to another
Affiliate majority owned by Franchisee, its parent or an Affiliate; any action which is the result
of a merger of the direct or indirect parent of Franchisee; or any action which is the result of a
merger of another Affiliate majority owned by Franchisee, its parent or an Affiliate.
1.38. Video Programming: Shall be defined herein as it is defined under
Section 602 of the Communications Act, 47 U.S.C. § 522(20).
2. GRANT OF AUTHORITY; LIMITS AND RESERVATIONS
2.1. Grant of Authority: Subject to the terms and conditions of this Agreement
and the Cable Law, LFA hereby grants Franchisee the right to own, construct, operate and
maintain a Cable System along the Public Rights-of-Way within the Franchise Area, in order to
provide Cable Service. No privilege or power of eminent domain is bestowed by this grant; nor
is such a privilege or power bestowed by this Agreement. Franchisee shall comply with all
federal and state laws applicable to the Cable System.
2.2. LFA Does Not Regulate Telecommunications: As of the Effective Date
(hereinafter defined) of this Agreement, LFA's regulatory authority under Title VI of the
Communications Act does not extend to the construction, installation, maintenance or operation
of Franchisee's FTTP Network to the extent the FTTP Network is being constructed, installed,
maintained and operated for the purpose of upgrading and/or extending Verizon's existing
Telecommunications Facilities for the provision of Non-Cable Services.
2.3. Term: Franchisee has thirty (30) days to accept this Franchise following
its approval by LFA's governing authority authorized to grant franchises. The effective date of
this Agreement shall be the date of last signature ("Effective Date"). The term of this Franchise
shall be fifteen (15) years from the Effective Date unless the Franchise is earlier revoked as
provided herein.
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2.4. Grant Not Exclusive: This Franchise and the right it grants to use and
occupy the Public Rights-of-Way to provide Cable Services shall not be exclusive, and LFA
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 themselves, at any time
during the term of this Franchise. Any such rights which are granted shall not adversely impact
the authority as granted under this Franchise and shall not interfere with existing facilities of the
Cable System or Franchisee's FTTP Network.
2.5. Franchise Subject to Federal and State Law: Notwithstanding any
provision to the contrary herein, this Franchise is subject to and shall be governed by all
applicable provisions of state and federal law as they may be amended, including but not limited
to the Communications Act.
2.6. No Waiver:
2.6.1. The failure of LFA on one or more occasions to exercise a right or
to require compliance or performance under this Franchise, the Cable Law or any other
applicable law shall not be deemed to constitute a waiver of such right or a waiver of compliance
or performance by LFA, nor to excuse Franchisee from complying or performing, unless such
right or such compliance or performance has been specifically waived in writing.
2.6.2. The failure of Franchisee on one or more occasions to exercise a
right under this Franchise or applicable law, or to require performance under this Franchise, shall
not be deemed to constitute a waiver of such right or of performance of this Agreement, nor shal I
it excuse LFA from performance, unless such right or performance has been specifically waived
in writing.
2.7. Construction of Agreement:
2.7.1. The provisions of this Franchise shall be liberally construed to
effectuate their objectives. In the event of a conflict between the Cable Law and this Agreement,
this Agreement shall prevail.
2.7.2. The following Cable Law provisions not addressed by this
Agreement do not apply to this Franchise: Sections 5.40.132 and 5.40.133 of Ordinance No.
840, Sections 1(G), l(H), 1(J), 5(B), 6(C), 6(D), 6(E), 6(F), 6(H), 6(K), 6(L), 6(N), 6(0), 6(P),
6(Q), 6(R), 6(T), 7(A), 8, 9, 10, 11, 12, 13, 15(B), 15(C), 16(G), 16(J), 16(K), 16(L), 16(M),
16(0) and 17 of Ordinance No. 855, and the equivalent sections of Chapter 5.40 of the City of
Lake Elsinore Municipal Code, Ordinance No. 498 does not apply to this Franchise.
2.7.3. Nothing herein shall be construed to limit the scope or applicability
of Section 625 Communications Act, 47 U.S.C. § 545.
2.7.4. Should any change to federal, state or local law, rules, or
regulations have the lawful effect of materially altering the terms and conditions of' this
Franchise, then the parties shall modify this Franchise to the mutual satisfaction of both parties to
ameliorate the negative effects on Franchisee of the material alteration. If the parties cannot
reach agreement on the above-referenced modification to the Franchise, then Franchisee may
Lake Elsinore 8
terminate this Agreement without further obligation to LFA or, at Franchisee's option, the parties
agree to submit the matter to binding arbitration in accordance with the commercial arbitration
rules of the American Arbitration Association.
2.7.5. LFA and Franchisee each acknowledge that they have received
independent legal advice in entering into this Agreement. In the event that a dispute arises over
the meaning of application of any term(s) of this Agreement, such term(s) shall not be construed
by reference to any doctrine calling for ambiguities to be construed against the drafter of the
Agreement.
2.8. Police Powers: Nothing in the Franchise shall be construed to prohibit the
reasonable, necessary and lawful exercise of LFA's police powers. However, if the reasonable,
necessary and lawful exercise of LFA's police power results in any material alteration of' the
terms and conditions of this Franchise, then the parties shall modify this Franchise to the mutual
satisfaction of both parties to ameliorate the negative effects on Franchisee of the material
alteration. If the parties cannot reach agreement on the above-referenced modification to the
Franchise, then Franchisee may terminate this Agreement without further obligation to LFA or,
at Franchisee's option, the parties agree to submit the matter to binding arbitration in accordance
with the commercial arbitration rules of the American Arbitration Association.
3. PROVISION OF CABLE SERVICE
3.1. Service Area:
3.1.L Initial Service Area: Franchisee shall offer Cable Service to a
significant numbers of Subscribers in residential areas of the Initial Service Area and may make
Cable Service available to businesses in the Initial Service Area, within eighteen (18) months of
the Effective Date of this Franchise, and shall offer Cable Service to all residential areas in the
Initial Service Area within two (2) years of the Service Date of the Franchise, except: (A) for
periods of Force Majeure; (B) for periods of delay caused by LFA; (C) for periods of delay
resulting from Franchisee's 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 with other providers; (E) in developments or buildings that Franchisee cannot
access under reasonable terms and conditions after good faith negotiation, as determined by
Franchisee; and (F) in developments or buildings that Franchisee is unable to provide Cable
Service for technical reasons or which require non-standard facilities which are not available on
a commercially reasonable basis; and (G) in areas where the occupied residential household
density does not meet the density requirement set forth in Sub-section 3.1.1.1.
3.1.1.1. Density Requirement: Franchisee shall make Cable
Services available to residential dwelling units in all areas of the Service Area where the average
density is equal to or greater than 30 occupied residential dwelling units per mile as measured in
strand footage from the nearest technically feasible point on the active FTTP Network trunk or
feeder line. Should, through new construction, an area within the Initial Service Area or
Extended Service Area meet the density requirements after the time stated for providing Cable
Service as set forth in Subsections 3.1.1 and 3.1.2 respectively, Franchisee shall provide Cable
Lake Elsinore 9
Service to such area within six (6) months of receiving notice that the density requirements have
been met.
3.1.2. Extended Service Area: Within 60 months following the Service
Date, Franchisee shall begin providing Cable Service in the Extended Service Area subject to the
conditions of Subsection 3.1.1 above and the other terms set forth herein.
3.1.3. Additional Service Areas: The parties agree that if any land is
annexed by the LFA during the term of this Agreement, such annexed areas ("Additional Service
Areas") shall become part of the Franchise Area and Franchisee shall be required to extend
Cable Service within a reasonable time to such annexed area(subject to the exceptions in Section
3.1.1. above), provided that such annexed area: (a) is contiguous to the LFA, (b) is within
Franchisee's Title II service territory, and (c) is served by the video-enabled FTTP Network.
3.2. Availability of Cable Service: Franchisee shall make Cable Service
available to all residential dwelling units and may make Cable Service available to businesses
within the Service Area in conformance with Section 3.1 and Franchisee shall not discriminate
between or among any individuals in the availability of Cable Service. In the areas in which
Franchisee shall provide Cable Service, Franchisee shall be required to connect, at Franchisee's
expense, all residential dwelling units that are within one hundred fifty (150) feet of trunk or
feeder lines not otherwise already served by Franchisee's FTTP Network. Franchisee shall be
allowed to recover, from a Subscriber that requests such connection, actual costs incurred for
residential dwelling unit connections that exceed 150 feet and actual costs incurred to connect
any non-residential dwelling unit Subscriber.
3.3. Cable Service to Public Buildings: Franchisee shall provide without
charge within the Service Area one service outlet activated for Basic Service to each fire station,
public school, police station, public library and such other buildings used for municipal purposes,
as designated by LFA and provided in Exhibit B; provided, however, that if it is necessary to
extend Franchisee's trunk or feeder lines more than one hundred fifty (150) feet solely to provide
service to any such school or public building, then LFA shall have the option either of paying
Franchisee's direct costs for such extension in excess of one hundred fifty (150) feet, or of
releasing Franchisee from the obligation to provide service to such building. Furthermore,
Franchisee shall be permitted to recover, from an_v public building owner entitled to free service,
the direct cost of installing, when requested to do so, more than one outlet, or concealed inside
wiring, or a service outlet requiring more than one hundred fifty (150) feet of drop cable;
provided, however, that Franchisee shall not charge for the provision of Basic Service to the
additional service outlets once installed.
4. SYSTEM OPERATION
The parties recognize that Franchisee's FTTP Network is being constructed and will be
operated and maintained as an upgrade to and/or extension of its existing Telecommunications
Facilities. The jurisdiction of LFA over such Telecommunications Facilities is restricted by
federal and state law, and LFA does not assert jurisdiction over Franchisee's FTTP Network in
contravention of those limitations.
Lake Elsinore 10
5. SYSTEM FACILITIES
5.1. System Characteristics: Franchisee's Cable System shall meet or exceed
the following requirements:
5.1.1. The System shall be designed with an initial analog passband of
50 MHz- 860 MHz.
5.1.2. The Cable System shall be designed to be an active two-way plant
utilizing the return bandwidth to permit such services as impulse pay-per-view and other
interactive services.
5.2. Interconnection: Franchisee shall design its Cable System so that it may
be interconnected with public, educational and governmental channels of other cable systems in
the Franchise Area, along with programming originated by LFA and other PEG Access Channel
users. Interconnection of systems may be made by direct cable connection, microwave link,
satellite, or other appropriate methods.
5.3. Emergency Alert System:
5.3.1. Franchisee shall comply with the Emergency Alert System
("EAS") requirements of the FCC in order that emergency messages may be distributed over the
System.
5.3.2. LFA shall permit only appropriately trained and authorized
Persons to operate the EAS equipment and shall take reasonable precautions to prevent any use
of the Cable System in any manner that results in inappropriate use thereof, or any loss or
damage to the Cable System. Except to the extent expressly prohibited by law, LFA shall hold
Franchisee, its employees, officers and assigns harmless from any claims arising out of use of the
EAS, including, but not limited to, reasonable attorneys' fees and costs.
6. PEG SERVICES
6.1. PEG Set Aside:
6.1.1. In order to ensure universal availability of public, educational and
government programming, Franchisee shall provide on the Basic Service Tier the following PEG
Access Channels: one (1) dedicated Government Access Channel and one (1) dedicated
Educational Access Channel; provided, however, Franchisee shall not be obligated to provide
such Educational Access Channel until the incumbent cable provider operating within the
Franchise Area similarly provides two or more PEG Access Channels.
6.1.2. LFA shall notify Franchisee of the programming to be carried on
the PEG Access Channels set aside by Franchisee. LFA authorizes Franchisee to transmit PEG
programming within and outside the local franchise area. Thereafter, Franchisee shall assign the
PEG Access Channels on its channel line-up as set forth in such notice, to the extent such
channel assignments do not interfere with any pre-existing channels. If a PEG Access Channel
Lake Elsinore 11
provided under this Article is not being utilized by LFA, Franchisee may submit a written
request to LFA to utilize such PEG Access Channel until such time as LFA elects to utilize the
PEG Channel for its intended purpose. Franchisee shall rededicate said PEG Access Channel(s)
for PEG Access Channel purposes within six (6) months of receipt of a written request from
LFA; provided, however, such six (6) month period does not apply if LFA's failure to utilize the
PEG Access Channel(s) is due to ongoing interconnection negotiations described in subsections
6.1.3 and 6.1.4.
6.1.3. Franchisee shall use reasonable efforts to interconnect all PEG
Channels of its Cable System with the existing cable operator in the LFA. Prior to the Service
Date, Franchisee shall initiate interconnection negotiations with the existing cable operator(s) to
cablecast public, educational and governmental access programming consistent with this
Franchise. Interconnection may be accomplished by direct cable, microwave link, satellite or
other reasonable method of connection. Franchisee shall negotiate in good faith with existing
cable operator(s) respecting reasonable, mutually convenient, cost-effective, and technically
viable interconnection points, methods, terms and conditions. LFA shall require the existing
cable operator(s) to provide such interconnection to Franchisee on reasonable terms and
conditions. Franchisee and the existing cable operator(s) shall negotiate the precise terms and
conditions of an interconnection agreement. LFA shall use its best efforts to facilitate these
negotiations.
6.1.4. If Franchisee is unable to reach agreement with the existing local
cable operator within ninety (90) days after requesting interconnection in writing, LFA shall
assist in mediating such dispute. If no agreement is reached within an additional ninety (90)
days, Franchisee agrees to provide, at its own cost and expense, a connection at the Lake
Elsinore Cultural Center, including the equipment and cabling necessary to carry on Franchisee's
Cable System the programming originating at such location in accordance with the technical
standards of this Agreement. In the event Franchisee connects at the Lake Elsinore Cultural
Center, it will be under no obligation to carry PEG programming originating on the cable system
of the existing cable operator.
6.2. PEG Grant
6.2.1. Franchisee shall provide an annual grant to LFA to be used in
support of the production of local PEG programming (the "Annual PEG Grant"). Such grant
shall be used by LFA for PEG access equipment, including, but not limited to, studio and
portable production equipment, editing equipment and program playback equipment, or for
renovation or construction of PEG access facilities, or for transport facilities to Franchisee's
location.
6.2.2. The Annual PEG Grant provided by Franchisee hereunder shall be
the sum of$0.65 per month, per Basic Service Subscriber in the Service Area. The Annual PEG
Grant payment, along with a brief summary of the Subscriber information upon which it is
based, shall be delivered to LFA quarterly, concurrent with the Franchise fee payment during the
Franchise Term. Calculation of the Annual PEG Grant will commence with the first calendar
month during which Franchisee obtains its first Subscriber in the Service Area,
Lake Elsinore 12
6.2.3. Upon written request from Franchisee, LFA shall provide
Franchisee with a complete accounting annually of the distribution of funds granted pursuant to
this Section 6.2.
6.3. All local producers and users of any of the PEG facilities or PEG Access
Channels shall agree in writing to authorize Franchisee to transmit programming consistent with
this Agreement and to defend and hold harmless Franchisee and LFA from any and all liability
or other injury, including the reasonable cost of defending claims or litigation, arising from or in
connection with claims for failure to comply with applicable federal laws, rules, regulations or
other requirements of local, state or federal authorities; for claims of libel, slander, invasion of
privacy, or the infringement of common law or statutory copyright; for unauthorized use of any
trademark, trade name or service mark; for breach of contractual or other obligations owing to
third parties by the producer or user; and for any other injury or damage in law or equity, which
result from the use of a PEG facility or Access Channel.
6.4. To the extent permitted by federal law, Franchisee shall be allowed but is
not required to recover the costs of an Annual PEG Grant or any other costs arising from the
provision of PEG services from Subscribers and to include such costs as a separately billed line
item on each Subscriber's bill. Without limiting the forgoing, if allowed under state and federal
laws, Franchisee may externalize, line-item, or otherwise pass-through interconnection costs to
Subscribers.
7. FRANCHISE FEES
7.1. Payment to LFA: Franchisee shall pay to LFA a Franchise fee of five
percent (5%) of annual Gross Revenue. In accordance with Title VI of the Communications Act,
the twelve (12) month period applicable under the Franchise for the computation of the Franchise
fee shall be a calendar year. Such payments shall be made no later than sixty (60) days
following the end of each calendar quarter. Franchisee shall be allowed to submit or correct any
payments that were incorrectly omitted, and shall be refunded any payments that were
incorrectly submitted, in connection with the quarterly Franchise fee remittances within 90 days
following the close of the calendar year for which such payments were applicable.
7.2. Supporting Information: Each Franchise fee payment shall be
accompanied by a brief report prepared by a representative of Franchisee showing the basis for
the computation.
7.3. Limitation on Franchise Fee Actions: The period of limitation for
recovery of any Franchise fee or other fees payable hereunder shall be four (4) years from the
date on which payment by Franchisee is due. During any such four (4) year period, the period of
limitations for recovery of any Franchise fee shall be tolled on the date that LFA provides written
notice to Franchisee that a Franchise fee compliance review has been commenced and the actual
review of records is initiated within ninety (90) days of such notice and completed by LFA
asserting a claim as to any unpaid fees due hereunder within twelve (12) months from the date of
the production of all the records reasonably and in good faith requested. The parties intend that
tolling of the four (4) year period of limitations is to allow LFA to complete its review in a
Lake Elsinore 13
timely and efficient manner. The parties do not intend to provide LFA with the ability to
unreasonably toll the period of limitations for recovery of any Franchise fee or other fees payable
hereunder.
7.4. Bundled Services: If Cable Services subject to the Franchise fee required
under this Article 7 are provided to Subscribers in conjunction with Non-Cable Services, the
Franchise fee shall be applied only to the value of the Cable Services, as reflected on the books
and records of Franchisee in accordance with FCC or state public utility regulatory commission
rules, regulations, standards or orders. Franchisee shall not allocate revenue between Cable
Services and Non-Cable Services for the purpose or with the intent of evading or materially
reducing Franchisee's Franchise fee obligations to the LFA. Tariffed telecommunication
services that cannot be discounted by state and/or federal regulatory rules are excluded from the
allocation basis for the bundle discount.
8. CUSTOMER SERVICE
Consumer Protection And Service Standards are set forth in Exhibit C, which shall be
binding unless amended by written consent of the parties.
9. REPORTS AND RECORDS
9.1. Open Books and Records: Upon reasonable written notice to Franchisee
and with no less than thirty (30) business days written notice to Franchisee, LFA shall have the
right to inspect Franchisee's books and records pertaining to Franchisee's provision of Cable
Service in the Franchise Area at any time during Normal Business Hours and on a nondisruptive
basis, as are reasonably necessary to ensure compliance with the terms of this Franchise. Such
notice shall specifically reference the section or subsection of the Franchise which is under
review, so that Franchisee may organize the necessary books and records for appropriate access
by LFA. Franchisee shall not be required to maintain any books and records for Franchise
compliance purposes longer than four (4) years. Notwithstanding anything to the contrary set
forth herein, Franchisee shall not be required to disclose information that it reasonably deems to
be proprietary or confidential in nature, nor disclose any of its or an Affiliate's books and records
not relating to the provision of Cable Service in the Service Area. LFA agrees to treat any
information disclosed by Franchisee as confidential and only to disclose it to employees,
representatives, and agents thereof that have a need to know, or in order to enforce the provisions
hereof. Franchisee shall not be required to provide Subscriber information in violation of
Section 631 of the Communications Act, 47 U.S.C. §551.
9.2. Records Required: Franchisee shall at all times maintain:
9.2.1. Records of all written complaints for a period of four (4) years
after receipt by Franchisee. The term "complaint" as used herein refers to complaints about any
aspect of the Cable System or Franchisee's cable operations, including, without limitation,
complaints about employee courtesy. Complaints recorded will not be limited to complaints
requiring an employee service call;
Lake Elsinore 14
9.2.2. Records of outages for a period of four (4) years after occurrence,
indicating date, duration, area, and the number of Subscribers affected, type of outage, and
cause;
9.2.3. Records of service calls for repair and maintenance for a period of
four (4) years after resolution by Franchisee, indicating the date and time service was required,
the date of acknowledgment and date and time service was scheduled (if it was scheduled), and
the date and time service was provided, and (if different) the date and time the problem was
resolved;
9.2.4. Records of installation/reconnection and requests for service
extension for a period of four (4) years after the request was fulfilled by Franchisee, indicating
the date of request, date of acknowledgment, and the date and time service was extended; and
9.2.5. A public file showing the area of coverage for the provisioning of
Cable Services and estimated timetable to commence providing Cable Service.
10. INSURANCE AND INDEMNIFICATION
10.1. Insurance:
10.1.1. Franchisee shall maintain in full force and effect, at its own cost
and expense, during the Franchise Term, the following insurance coverage:
10.1.1.1. Commercial General Liability Insurance in the
amount of two million dollars ($2,000,000) combined single limit for property damage and
bodily injury. Such insurance shall cover the construction, operation and maintenance of the
Cable System, and the conduct of Franchisee's Cable Service business in LFA.
10.1.1.2. Automobile Liability Insurance in the amount of
one million dollars ($1,000,000) combined single limit for bodily injury and property damage
coverage.
10.1.1.3. Workers' Compensation Insurance meeting all legal
requirements of the State of California.
10.1.1.4. Employers' Liability Insurance in the following
amounts: (A) Bodily Injury by Accident: $100,000; and (B) Bodily Injury by Disease:
$100,000 employee limit; $500,000 policy limit.
10.1.2. LFA shall be designated as an additional insured under each of
the insurance policies required in this Article 10 except Worker's Compensation Insurance and
Employer's Liability Insurance.
10.1.3. Franchisee shall not cancel any required insurance policy or
reduce any coverage amount below the respective amount stated in this Section 10 without
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submitting documentation to LFA verifying that Franchisee has obtained alternative insurance in
conformance with this Agreement.
10.1.4. Each of the required insurance policies shall be with sureties
qualified to do business in the State of California, with an A- or better rating for financial
condition and financial performance by Best's Key Rating Guide, Property/Casualty Edition,
10.1.5. Upon written request, Franchisee shall deliver to LFA Certificates
of Insurance showing evidence of the required coverage.
10.2. Indemnification:
10.2.1. Franchisee agrees to indemnify, save and hold harmless, and
defend LFA, its officers, agents, boards and employees, from and against any liability for
damages and for any liability or claims resulting from tangible property damage or bodily injury
(including accidental death), to the extent proximately caused by Franchisee's negligent
construction, operation, or maintenance of its Cable System, provided that LFA shall give
Franchisee written notice of its obligation to indemnify LFA within ten (10) days of receipt of a
claim or action pursuant to this subsection, or twenty (20) days provided that Franchisee is not
prejudiced by the timing of such notice. Notwithstanding the foregoing, Franchisee shall not
indemnify LFA, for any damages, liability or claims resulting from the willful misconduct or
negligence of LFA, its officers, agents, employees, attorneys, consultants, independent
contractors or third parties or for any activity or function conducted by any Person other than
Franchisee in connection with PEG Access, use of the EAS, or the distribution of any Cable
Service over the Cable System.
10.2.2. With respect to Franchisee's indemnity obligations set forth in
Subsection 10.2.1, Franchisee shall provide the defense of any claims brought against LFA by
selecting counsel of Franchisee's choice to defend the claim, subject to the consent of LFA.
which shall not unreasonably be withheld. Nothing herein shall be deemed to prevent LFA from
cooperating with Franchisee and participating in the defense of any litigation by its own counsel
at its own cost and expense, provided however, that after consultation with LFA, Franchisee
shall have the right to defend, settle or compromise any claim or action arising hereunder, and
Franchisee shall have the authority to decide the appropriateness and the amount of any such
settlement. In the event that the terms of any such proposed settlement includes the release of
LFA and LFA does not consent to the terms of any such settlement or compromise, Franchisee
shall not settle the claim or action but its obligation to indemnify LFA shall in no event exceed
the amount of such settlement.
10.2.3. LFA shall hold Franchisee harmless and shall be responsible for
damages, liability or claims resulting from willful misconduct or negligence of LFA.
10.2.4. LFA shall be responsible for its own acts of willful misconduct or
negligence, or breach of obligation committed by LFA for which LFA is legally responsible,
subject to any and all defenses and limitations of liability provided by law. Franchisee shall not
be required to indemnify LFA for acts of LFA which constitute willful misconduct or
Lake Elsinore 16
negligence, on the part of LFA, its officers, employees, agents, attorneys, consultants,
independent contractors or third parties.
11. TRANSFER OF FRANCHISE
Subject to Section 617 of the Communications Act, 47 U.S.C. § 537, no Transfer
of the Franchise shall occur without the prior consent of LFA, provided that such consent shall
not be unreasonably withheld, delayed or conditioned. No such consent shall be required,
however, for a transfer in trust, by mortgage, by other hypothecation, by assignment of any
rights, title, or interest of Franchisee in the Franchise or Cable System in order to secure
indebtedness, or otherwise excluded under Section 1.37 above.
12. RENEWAL OF FRANCHISE
12.1. LFA and Franchisee agree that any proceedings undertaken by LFA that
relate to the renewal of this Franchise shall be governed by and comply with the provisions of
Section 626 of the Communications Act, 47 U.S.C. § 546.
12.2. hi addition to the procedures set forth in said Section 626 of the
Communications Act, LFA agrees to notify Franchisee of all of its assessments regarding the
identity of future cable-related community needs and interests, as well as the past performance of
Franchisee under the then current Franchise term. LFA further agrees that such assessments
shall be provided to Franchisee promptly so that Franchisee has adequate time to submit a
proposal under Section 626 and complete renewal of the Franchise prior to expiration of its term.
12.3. Notwithstanding anything to the contrary set forth herein, Franchisee and
LFA agree that at any time during the term of the then current Franchise, while affording the
public appropriate notice and opportunity to comment, LFA and Franchisee may agree to
undertake and finalize informal negotiations regarding renewal of the then current Franchise and
LFA may grant a renewal thereof.
12.4. Franchisee and LFA consider the terms set forth in this Article 12 to be
consistent with the express provisions of Section 626, of the Communications Act, 47 U.S.C.
§ 546.
13. ENFORCEMENT AND TERMINATION OF FRANCHISE
13.1. Security Fund Violations. LFA may assess amounts pursuant to the
procedures set forth in this Section 13.1 as an alternative remedy to commencing the remedial
and termination provisions set forth in Sections 13.2 through 13.6, inclusive, of this Agreement.
13.1.1. Creation of Security Fund. Within sixty (60) days following the
Effective Date of this Agreement, Franchisee shall establish and provide to LFA a security fund
("Security Fund") as security for the faithful performance by Franchisee of all material
provisions of this Agreement. The Security Fund shall be in the amount of Six Thousand Dollars
Lake Elsinore 17
($6,000) and shall be in the form of an irrevocable letter of credit, with all interest distributable
to Franchisee.
13.1.2. Amount of Security Fund. The Security Fund shall be maintained
at the Six Thousand Dollar ($6,000) level throughout the term of this Agreement, provided that
Franchisee shall not be required to maintain the Six Thousand Dollar ($6,000) level once LFA
has begun to assess amounts pursuant to Section 13.1.3 below; provided further that at intervals
no more often than each three (3) years, LFA shall have the right to require that this amount be
increased to reflect changes in the Los Angeles Metropolitan Area Consumer Price Index during
the prior three (3) year period.
13.1.3. Procedure for Assessing Security Fund.
13.1.3.1. If Franchisee fails to perform in a timely manner
any material obligation required by this Franchise, LFA may assess an amount from the Security
Fund as set forth below. Such assessment may be withdrawn from the Security Fund, and shall
not constitute a waiver by LFA of any other right or remedy it may have under this Franchise or
applicable law except as set forth in this Agreement, including without limitation its right to
recover from Franchisee such additional damages, losses, costs and expenses, as may have been
suffered or incurred by LFA by reason of or arising out of such breach of this Franchise.
13.1.3.2. Prior to assessing the Security Fund, LFA shall first
notify Franchisee of the violation in writing by personal delivery or registered or certified mail,
and demand correction or commencement of correction within a reasonable time, which shall not
be less than fifteen (15) days in the case of the failure of Franchisee to pay any sum or other
amount due LFA under this Agreement, and thirty (30) days in all other cases. If Franchisee
fails to demonstrate that a violation has not occurred, or to correct the violation within the time
prescribed, or if Franchisee fails to commence corrective action within the time prescribed and
diligently remedy such violation thereafter, or if the violation is not correctable, Franchisee shall
then be given written notice from LFA finding Franchisee in violation of this Agreement. Said
notice shall specify the violations alleged to have occurred.
13.1.3.3. After the time period set forth in Section 13.1.3.2
herein, in the event that LFA finds that a material violation exists and that Franchisee has not
corrected the same in a satisfactory manner or has not diligently commenced correction of such
violation, LFA may request the City Council to assess an amount from the Security Fund, of up
to One Hundred Dollars ($100) per day. Damages shall be calculated as accruing from the date
of the violation.
13.1.3.4. If the City Council elects to assess an amount from
the Security Fund, pursuant to the provisions of this Franchise Agreement, then such election
shall constitute LFA's exclusive remedy for a period of sixty (60) days. Thereafter, LFA may
pursue any available remedy, including those set forth in Sections 13.2 through 13.6, inclusive,
below.
13.1.3.5. If a dispute arises out of or relates to this Franchise
resulting in LFA's assessment from the Security Fund of any amounts pursuant to this Section
Lake Elsinore 18
13.1, and if the dispute cannot be settled through good faith negotiations, then the parties agree
first to try in good faith to settle the dispute by mediation administered by the American
Arbitration Association under its Commercial Mediation Procedures before resorting to
arbitration. Any dispute that arises out of or relates to this Franchise resulting in the imposition
of any amount as set forth in this Section 13.1 that the parties cannot resolve in mediation shall
be settled by arbitration administered by the American Arbitration Association in accordance
with its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof.
13.1.4. Franchisee Representations. If LFA's action or taking is found
to be improper by any court or agency of competent jurisdiction, Franchisee shall be entitled to a
refund of the funds plus interest and/or any other award such court or agency shall make.
13.1.5. LFA Representations. Notwithstanding any provision in this
Franchise to the contrary, in the event that LFA believes that Franchisee has not complied with
the terms of the Franchise, LFA agrees that it shall informally discuss such noncompliance with
Franchisee. If these discussions do not lead to resolution of said noncompliance, then LFA shall
notify Franchisee in writing of the exact nature of the alleged noncompliance prior to
withdrawing any funds and/or liquidated damage amounts from the Security Fund. LFA shall
not assess any amounts from the Security Fund if Franchisee provides written notice within the
notice periods set forth in 13.1.3.2 that Franchisee is initiating the dispute resolution process set
forth in 13.1.3.5.
13.2. Notice of Violations Not Subject to Security Fund: In the event that LFA
believes that Franchisee has not complied with the terms of the Franchise, and LFA declines to
assess amounts from the Security Fund, LFA shall first informally discuss the matter with
Franchisee prior to invoking its remedies as set forth in Sections 13.3. to 13.6., inclusive, herein.
If these discussions do not lead to resolution of the problem, then LFA shall notify Franchisee in
writing of the exact nature of the alleged noncompliance.
13.3. Franchisee's Right to Cure or Respond: For violations not subject to the
Security Fund, Franchisee shall have thirty (30) days from receipt of the written notice described
in Section 13.2 to: (i) respond to LFA, if Franchisee contests (in whole or in part) the assertion of
noncompliance; (ii) cure such default; or (iii) in the event that, by the nature of default, such
default cannot be cured within the thirty (30) day period, initiate reasonable steps to remedy such
default and notify LFA of the steps being taken and the projected date that they will be
completed.
13.4. Hearing: In the event that Franchisee fails to respond to the written notice
described in Section 13.2, or in the event that the alleged default is not remedied within thirty
(30) days or the date projected pursuant to Section 13.3(iii) above, if it intends to continue its
investigation into the default, then LFA shall schedule a hearing. LFA shall provide Franchisee
at least thirty (30) business days prior written notice of such hearing, which will specify the time,
place and purpose of such hearing, and provide Franchisee the opportunity to be heard.
Lake Elsinore 19
13.5. Enforcement: Subject to applicable federal and state law, in the event
LFA, after the hearing set Section 13.4, determines that Franchisee is in default of any provision
of the Franchise, LFA may:
13.5.1. Seek specific performance of any provision, which reasonably
lends itself to such remedy, as an alternative to damages; or
equitable relief; or 13.5.2. Commence an action at law for monetary damages or seek other
13.5.3. In the case of a substantial material default of a material provision
of the Franchise, seek to revoke the Franchise in accordance with Section 13.6.
13.6. Revocation: Should LFA seek to revoke the Franchise after following the
procedures set forth in Sections 13.2 through 13.5 above, LFA shall give written notice to
Franchisee of its intent. The notice shall set forth the exact nature of the noncompliance.
Franchisee shall have ninety (90) days from such notice to object in writing and to state its
reasons for such objection. In the event LFA has not received a satisfactory response from
Franchisee, it may then seek termination of the Franchise at a public hearing. LFA shall cause to
be served upon Franchisee, at least thirty (30) days prior to such public hearing, a written notice
specifying the time and place of such hearing and stating its intent to revoke the Franchise.
13.6.1. At the designated hearing, Franchisee shall be provided a fair
opportunity for full participation, including the right to be represented by legal counsel, to
introduce relevant evidence, to require the production of evidence, to compel the relevant
testimony of the officials, agents, employees or consultants of LFA, to compel the testimony of
other persons as permitted by law, and to question and/or cross examine witnesses. A complete
verbatim record and transcript shall be made of such hearing.
13.6.2. Following the public hearing, Franchisee shall be provided up to
thirty (30) days to submit its proposed findings and conclusions in writing and thereafter LFA
shall determine (i) whether an event of default has occurred; (ii) whether such event of default is
excusable; and (iii) whether such event of default has been cured or will be cured by Franchisee.
LFA shall also determine whether to revoke the Franchise based on the information presented.
or, where applicable, grant additional time to Franchisee to effect any cure. If LFA determines
that the Franchise shall be revoked, LFA shall promptly provide Franchisee with a written
decision setting forth its reasoning. Franchisee may appeal such determination of LFA to an
appropriate court, which shall have the power to review the administrative record as
supplemented in good faith by the parties de novo. Franchisee shall be entitled to such relief as
the court finds appropriate. Such appeal must be taken within sixty (60) days of Franchisee's
receipt of the determination of the franchising authority.
13.6.3. LFA may, at its sole discretion, take any lawful action which it
deems appropriate to enforce LFA's rights under the Franchise in lieu of revocation of the
Franchise.
13.7. Franchisee Termination: During the term, Franchisee shall have the right
to terminate this Franchise and all obligations hereunder if Franchisee does not in good faith
Lake Elsinore 20
believe it has achieved a commercially reasonable level of Subscriber penetration on its Cable
System. Franchisee may consider Subscriber penetration levels outside the Franchise Area in this
determination. Notice to terminate under this Section 13.7 shall be given to the City in writing,
with such termination to take effect no sooner than two hundred and ten (210) calendar days after
giving such notice. Franchisee shall also be required to give its then current Subscribers not less
than one hundred and eighty (180) calendar days prior written notice of its intent to cease Cable
Service operations.
14. MISCELLANEOUS PROVISIONS
14.1. Actions of Parties: In any action by LFA or Franchisee that is mandated
or permitted under the terms hereof, such party shall act in a reasonable, expeditious, and timely
manner. Furthermore, in any instance where approval or consent is required under the terms
hereof, such approval or consent shall not be unreasonably withheld, delayed or conditioned.
14.2. Binding Acceptance: This Agreement shall bind and benefit the parties
hereto and their respective heirs, beneficiaries, administrators, executors, receivers, trustees,
successors and assigns, and the promises and obligations herein shall survive the expiration date
hereof.
14.3. Preemption: In the event that federal or state law, rules, or regulations
preempt a provision or limit the enforceability of a provision of this Agreement, the provision
shall be read to be preempted.to the extent, and for the time, but only to the extent and for the
time, required by law. In the event such federal or state law, rule or regulation is subsequently
repealed, rescinded, amended or otherwise changed so that the provision hereof that had been
preempted is no longer preempted, such provision shall thereupon return to full force and effect,
and shall thereafter be binding on the parties hereto, without the requirement of further action on
the part of LFA.
14.4. Force Majeure: Franchisee shall not be held in default under, or in
noncompliance with, the provisions of the Franchise, nor suffer any enforcement or penalty
relating to noncompliance or default, where such noncompliance or alleged defaults occurred or
were caused by a Force Majeure.
14.4.1. Furthermore, the parties hereby agree that it is not LFA's
intention to subject Franchisee to penalties, fines, forfeitures or revocation of the Franchise for
violations of the Franchise where the violation was a good faith error that resulted in no or
minimal negative impact on Subscribers, or where strict performance would result in practical
difficulties and hardship being placed upon Franchisee which outweigh the benefit to be derived
by LFA and/or Subscribers.
14.5. Notices: Unless otherwise expressly stated herein, notices required under
the Franchise 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.
14.5.1. Notices to Franchisee shall be mailed to:
Lake Elsinore 21
Verizon California Inc.
Attn: Tim McCallion, President - Pacific Region
112 Lakeview Canyon Road
Thousand Oaks, CA 91362
14.5.2. with a copy to:
Mr. Jack H White
Senior Vice President & General Counsel — Verizon Telecom
One Verizon Way
Room VC43E010
Basking Ridge, NJ 07920-1097
14.5.3. Notices to LFA shall be mailed to:
City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
14.6. Entire Agreement: This Franchise and the Exhibits hereto constitute the
entire agreement between Franchisee and LFA.
14.7. Amendments. Amendments to this Franchise shall be mutually agreed to
in writing by the parties.
14.8. Captions: The captions and headings of articles and sections throughout
this Agreement are intended solely to facilitate reading and reference to the sections and
provisions of this Agreement. Such captions shall not affect the meaning or interpretation of this
Agreement.
14.9. Severability: If any section, subsection, sentence, paragraph, term, or
provision hereof is determined to be illegal, invalid, or unconstitutional, by any court of
competent jurisdiction or by any state or federal regulatory authority having jurisdiction thereof,
such determination shall have no effect on the validity of any other section, subsection, sentence,
paragraph, term or provision hereof, all of which will remain in full force and effect for the term
of the Franchise.
14.10. Recitals: The recitals set forth in this Agreement are incorporated into the
body of this Agreement as if they had been originally set forth herein.
14.11. Franchisee's F77P Network: LFA and Franchisee recognize and agree
that due to the nature of Franchisee's FTTP Network, certain provisions of the Cable Law are not
applicable to Franchisee, including but not limited to Sections 6(C), 6(D), 6(E), 6(F), 6(K), 6(L),
6(N), 6(0), 6(P), 6(Q), 6(R), 8, 9, 10, 11, 12, 16(G), 16(J), 16(K), and 17 of Ordinance No. 855.
14.12. Modification: This Franchise shall not be modified except by written
instrument executed by both parties.
Lake Elsinore 22
14.13. FTTP Network Transfer Prohibition: Under no circumstance including,
without limitation, upon expiration, revocation, termination, denial of renewal of the Franchise
or any other action to forbid or disallow Franchisee from providing Cable Services, shall
Franchisee or its assignees be required to sell any right, title, interest, use or control of anN
portion of Franchisee's FTTP Network including, without limitation the Cable System and anv
spectrum capacity used for Cable Service or otherwise, to LFA or any third party. Franchisee
shall not be required to remove the FTTP Network(s) or to relocate the FTTP Network(s) as a
result of revocation, expiration, termination, denial of renewal or any other action to forbid or
disallow Franchisee from providing Cable Services. This provision is not intended to contravene
leased access requirements under Title VI or PEG requirements set out in this Agreement.
14.14. Acceptance Fee: Franchisee shall pay LFA ten thousand dollars ($10,000)
for cost associated with the grant of this Franchise within thirty (30) days following the Effective
Date.
SIGNATURE PAGE FOLLOWS
Lake Elsinore 23
AGREED TO AS OF THE DATE OF LAST SIGNATURE BELOW:
CITY OF LAKE .SWORE APPROVED AS_1
P FORM;
By:
Robert E. Magee, or —
•?yDate:
A ATTE
VERIZON CALIFORNIA INC. Atyy erk
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Tim McGl�,11 fb/�Presi dent-Pacific Region
Date:
FORM
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EXHIBITS
Exhibit A: Initial and Extended Service Areas
Exhibit B: Municipal Buildings to be Provided Free Cable Service
Exhibit C: Consumer Protection And Service Standards
Lake Elsinore
24
EXHIBIT A
SERVICE AREAS
The Initial Service Area and Extended Service Areas are depicted below.
Service Area Map for the
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Lake Elsinore
25
EXHIBIT B
MUNICIPAL BUILDINGS TO BE PROVIDED FREE CABLE SERVICE
City and Public Buildings
Facility Address
Lake Elsinore Police Department 333 Limited Avenue
Lake Elsinore, CA
Lake Elsinore Station #10 410 W. Graham Avenue
Lake Elsinore, CA
Lake Elsinore McVicker#85 29405 Grand Avenue
Lake Elsinore, CA
Lake Elsinore Station#94 RR Canyon 22770 Railroad Canyon Road
Lake Elsinore, CA
Lake Elsinore Library 600 W. Graham Avenue
Lake Elsinore, CA
Lake Elsinore City Hall 130 S. Main Street
Lake Elsinore, CA
Lake Elsinore City Yard 521 N. Langstaff
Lake Elsinore, CA
Lake Elsinore Senior Center 420 E. Lakeshore Drive
Lake Elsinore, CA
Lake Elsinore Stadium 500 Diamond Drive
Lake Elsinore, CA
Lake Elsinore Cultural Center 183 N. Main Street
Lake Elsinore, CA
Public Schools
Public School Address
Cottonwood Canyon Elementary 32100 Lost Road
School Lake Elsinore, CA 92532
Elsinore Elementary School 512 West Sumner Street
Lake Elsinore, CA 92530
Machado Elementary School 15150 Joy Street
Lake Elsinore, CA 92530
Railroad Canyon Elementary School 1300 Mill Street
Lake Elsinore, CA 92530
Rice Canyon Elementary School 29535 Westwind Drive
Lake Elsinore, CA 92530
Tuscany Hills Elementary School 23 Ponte Russo
Lake Elsinore, CA 92532
Lake Elsinore
26
Public School Address
Withrow Elementary School 30100 Adelo Street
Lake Elsinore, CA 92530
Canyon Lake Middle School 33005 Canyon Hill Road
Lake Elsinore, CA 92532
Elsinore Middle School 1203 W. Graham
Lake Elsinore, CA 92532
Terra Cotta Middle School 29291 Lake Street
Lake Elsinore, CA 92530
Lakeside High School 33693 Riverside Drive
Lake Elsinore, CA 92530
Temescal Canyon High School 28755 El Toro Road
Lake Elsinore, CA 92532
Ortega Continuation High School 520 Chaney Street
Lake Elsinore, CA 92530
Alternative Education Center 1405 Education Way
Gordon Keifer IS Lake Elsinore, CA 92530
Future City Facilities
Franchisee shall provide, without charge, one service outlet activated for Basic Service to
municipal buildings that are planned or under construction, if and when the incumbent cable
provider operating within the Franchise Area provides a similar service to such locations.
Lake Elsinore 27
EXHIBIT C
CONSUMER PROTECTION AND SERVICE STANDARDS
Franchisee's obligations concerning Consumer Protection And Service Standards shall
include the following, which shall be binding unless amended by written consent of the parties.
These standards shall, starting six months after the Service Date, apply to the Franchisee to the
extent it is providing Cable Services over the Cable System in the Franchise area.
SECTION 1: DEFINITIONS
(a) Respond: Franchisee's investigation of a Service Interruption by receiving a
Subscriber call and opening a trouble ticket, if required.
(b) Significant Outage: A significant outage of the Cable Service shall mean any
Service Interruption lasting at least four (4) continuous hours that affects at least ten percent
(10%) of the Subscribers in the Service Area.
(c) Service Call: The action taken by the Franchisee to correct a Service Interruption
the effect of which is limited to an individual Subscriber.
(d) Standard Installation: Installations where the subscriber is within one hundred
twenty five (125) feet of trunk or feeder lines.
SECTION 2: TELEPHONE AVAILABILITY
(a) Franchisee shall maintain a toll-free number to receive all calls and inquiries from
Subscribers in the Franchise Area and/or LFA residents regarding Cable Service. Franchisee
representatives trained and qualified to answer questions related to Cable Service in the Service
Area must be available to receive reports of Service Interruptions twenty-four (24) hours a day,
seven(7) days a week, and other inquiries at least forty-five (45) hours per week, including some
evening and weekend hours. Franchisee representatives shall identify themselves by name when
answering this number.
(b) The Franchisee's telephone numbers shall be listed, with appropriate description
(e.g. administration, customer service, billing, repair, etc.), in the directory published by the local
telephone company or companies serving the Service Area, beginning with the next publication
cycle after acceptance of this Franchise by Franchisee.
(c) Franchisee may use an Automated Response Unit ("ARU") or a Voice Response
Unit ("VRU") to distribute calls. If a foreign language routing option is provided, and the
Subscriber does not enter an option, the menu will default to the first tier menu of English
options.
After the first tier menu (not including a foreign language rollout) has run through three
times, if customers do not select any option, the ARU or VRU will forward the call to a queue
Lake Elsinore 28
for a live representative. Franchisee may reasonably substitute this requirement with another
method of handling calls from customers who do not have touch-tone telephones.
(d) Under Normal Operating Conditions, calls received by the Franchisee shall be
answered within thirty (30) seconds. Franchisee shall meet this standard for ninety percent
(90%) of the calls it receives at all call centers receiving calls from Subscribers, as measured on a
cumulative quarterly calendar basis. Measurement of this standard shall include all calls
received by the Franchisee at all call centers receiving calls from Subscribers, whether they are
answered by a live representative, by an automated attendant, or abandoned after 30 seconds of
call waiting.
(e) Under Normal Operating Conditions, callers to the Franchisee shall receive a busy
signal no more than three (3%)percent of the time during any calendar quarter.
(fl At the Franchisee's option, the measurements above may be changed from
calendar quarters to billing or accounting quarters. Franchisee shall notify LFA of such a change
at least thirty (30) days in advance of any implementation.
SECTION 3: INSTALLATIONS AND SERVICE APPOINTMENTS
(a) All installations will be in accordance with FCC rules, including but not limited
to, appropriate grounding, connection of equipment to ensure reception of Cable Service, and the
provision of required consumer information and literature to adequately inform the Subscriber in
the utilization of Franchisee-supplied equipment and Cable Service.
(b) The Standard Installation shall be performed within seven (7) business days after
the placement of the Optical Network Terminal ("ONT") on the customer's premises or within
seven (7) business days after an order is placed if the ONT is already installed on the customer's
premises.
Franchisee shall meet this standard for ninety-five percent (95%) of the Standard
Installations it performs, as measured on a calendar quarter basis, excluding customer requests
for connection later than seven (7) days after ONT placement or later than seven (7) days after an
order is placed if the ONT is already installed on the customer's premises.
(c) At the Franchisee's option, the measurements and reporting of above may be
changed from calendar quarters to billing or accounting quarters. The Franchisee shall notify the
LFA of such a change not less than thirty (30) days in advance.
(d) The Franchisee will offer Subscribers "appointment window" alternatives for
arrivals to perform installations, Service Calls and other activities of a maximum four (4) hours
scheduled time block during appropriate daylight available hours, usually beginning at 8:00 AM
unless it is deemed appropriate to begin earlier by location exception. At the Franchisee's
discretion, the Franchisee may offer Subscribers appointment arrival times other than these four
(4) hour time blocks, if agreeable to the Subscriber. These hour restrictions do not apply to
weekends.
Lake Elsinore 29
SECTION 4: SERVICE INTERRUPTIONS AND OUTAGES
(a) The Franchisee shall promptly.notify the LFA of any Significant Outage of the
Cable Service.
(b) The Franchisee shall exercise commercially reasonable efforts to limit any
Significant Outage for the purpose of maintaining, repairing, or constructing the Cable System.
Except in an emergency or other situation necessitating a more expedited or alternative
notification procedure, the Franchisee may schedule a Significant Outage for a period of more
than four (4) hours during any twenty-four (24) hour period only after the LFA and each affected
Subscriber in the Service Area have been given fifteen (15) days prior notice of the proposed
Significant Outage.
(c) Franchisee representatives who are capable of responding to Service Interruptions
must be available to Respond twenty-four (24) hours a day, seven (7) days a week.
(d) Under Normal Operating Conditions, the Franchisee must Respond to a call from
a Subscriber regarding a Service Interruption or other service problems within the following time
frames:
(1) Within twenty-four (24) hours, including weekends, of receiving subscriber
calls respecting Service Interruptions in the Service Area.
(2) The Franchisee must begin actions to correct all other Cable Service problems
the next business day after notification by the Subscriber or the LFA of a Cable Service problem.
(e) Under Normal Operating Conditions, the Franchisee shall provide a credit upon
Subscriber request when all Channels received by that Subscriber are out of service for a period
of four (4) consecutive hours or more. The credit shall equal, at a minimum, a proportionate
amount of the affected Subscriber(s) current monthly bill. In order to qualify for the credit, the
Subscriber must promptly report the problem and allow Franchisee to verify the problem if
requested by the Franchisee. If Subscriber availability is required for repair, a credit will not be
provided for such time, if any, that the Subscriber is not reasonably available.
(f) Under Normal Operating Conditions, if a Significant Outage affects all Video
Programming Cable Services for more than twenty-four (24) consecutive hours, the Franchisee
shall issue an automatic credit to the affected Subscribers in the amount equal to their monthly
recurring charges for the proportionate time the Cable Service was out, or a credit to the affected
subscribers in the amount equal to the charge for the basic plus enhanced basic level of service
for the proportionate time the Cable Service was out, whichever is technically feasible or, if both
are technically feasible, as determined by Franchisee provided such determination is non-
discriminatory. Such credit shall be reflected on Subscriber billing statements within the next
available billing cycle following the outage.
(g) With respect to service issues concerning cable services provided to LFA
facilities, Franchisee shall Respond to all inquiries from the LFA within four (4) hours and shall
commence necessary repairs within twenty-four (24) hours under Normal Operating Conditions.
Lake Elsinore 30
If such repairs cannot be completed within twenty-four (24) hours, the Franchisee shall notify the
LFA in writing as to the reason(s) for the delay and provide an estimated time of repair.
SECTION 5: CUSTOMER COMPLAINTS
Under Normal Operating Conditions, the Franchisee shall investigate Subscriber
complaints referred by the LFA within seventy-two (72) hours. The Franchisee shall notify the
LFA of those matters that necessitate an excess of seventy-two (72) hours to resolve, but those
matters must be resolved within fifteen (15) days of the initial complaint. The LFA may require
reasonable documentation to be provided by the Franchisee to substantiate the request for
additional time to resolve the problem. For purposes of this Section, "resolve" means that the
Franchisee shall perform those actions, which, in the normal course of business, are necessary to
investigate the Customer's complaint and advise the Customer of the results of that investigation.
SECTION 6: BILLING
A. Subscriber bills must be itemized to describe Cable Services purchased by
Subscribers and related equipment charges. Bills shall clearly delineate activity during the
billing period, including optional charges, rebates, credits, and aggregate late charges. Franchisee
shall, without limitation as to additional line items, be allowed to itemize as separate line items,
Franchise fees, taxes and/or other governmentally imposed fees. The Franchisee shall maintain
records of the date and place of mailing of bills.
B. Every Subscriber with a current account balance sending payment directly to
Franchisee shall be given at least twenty (20) days from the date statements are mailed to the
Subscriber until the payment due date.
C. A specific due date shall be listed on the bill of every Subscriber whose account is
current. Delinquent accounts may receive a bill which lists the due date as upon receipt;
however, the current portion of that bill shall not be considered past due except in accordance
with Subsection 6.13. above.
D. Any Subscriber who, in good faith, disputes all or part of any bill shall have the
option of withholding the disputed amount without disconnect or late fee being assessed until the
dispute is resolved provided that:
(1) The Subscriber pays all undisputed charges;
(2) The Subscriber provides notification of the dispute to Franchisee within
five (5) days prior to the due date; and
(3) The Subscriber cooperates in determining the accuracy and/or
appropriateness of the charges in dispute.
(4) It shall be within the Franchisee's sole discretion to determine when the
dispute has been resolved.
Lake Elsinore 31
E. Under Normal Operating Conditions, the Franchisee shall initiate investigation
and resolution of all billing complaints received from Subscribers within five (5) business days
of receipt of the complaint. Final resolution shall not be unreasonably delayed.
F. The Franchisee shall provide a telephone number and address on the bill for
Subscribers to contact the Franchisee.
G. The Franchisee shall forward a copy of any Cable Service related billing inserts or
other mailing sent to Subscribers to the LFA upon request.
H. The Franchisee shall provide all Subscribers with the option of paying for Cable
Service by check or an automatic payment option where the amount of the bill is automatically
deducted from a checking account designated by the Subscriber. Franchisee may in the future, at
its discretion, permit payment by using a major credit card on a preauthorized basis. Based on
credit history, at the option of the Franchisee, the payment alternative may be limited.
I. LFA hereby requests that Franchisee omit publishing information specified in 47
C.F.R. § 76.952 from Subscriber bills.
SECTION 7: DEPOSITS, REFUNDS AND CREDITS
A. The Franchisee may require refundable deposits from Subscribers with 1) a poor
credit or poor payment history, 2) who refuse to provide credit history information to the
Franchisee, or 3) who rent Subscriber equipment from the Franchisee, so long as such deposits
are applied on a non-discriminatory basis. The deposit the Franchisee may charge Subscribers
with poor credit or poor payment history or who refuse to provide credit information may not
exceed an amount equal to an average Subscriber's monthly charge multiplied by six (6). The
maximum deposit the Franchisee may charge for Subscriber equipment is the cost of the
equipment which the Franchisee would need to purchase to replace the equipment rented to the
Subscriber.
B. The Franchisee shall refund or credit the Subscriber for the amount of the deposit
collected for equipment, which is unrelated to poor credit or poor payment history, after one year
and provided the Subscriber has demonstrated good payment history during this period. The
Franchisee shall pay interest on other deposits if required law.
C. Under Normal Operating Conditions, refund checks will be issued within next
available billing cycle following the resolution of the event giving rise to the refund, (e.g.
equipment return and final bill payment).
D. Credits for Cable Service will be issued no later than the Subscriber's next
available billing cycle, following the determination that a credit is warranted, and the credit is
approved and processed. Such approval and processing shall not be unreasonably delayed.
Lake Elsinore 32
E. Bills shall be considered paid when appropriate payment is received by the
Franchisee or its authorized agent. Appropriate time considerations shall be included in the
Franchisee's collection procedures to assure that payments due have been received before late
notices or termination notices are sent.
SECTION 8: RATES, FEES AND CHARGES
A. The Franchisee shall not, except to the extent expressly permitted by law, impose
any fee or charge for Service Calls to a Subscriber's premises to perform any repair or
maintenance work related to Franchisee equipment necessary to receive Cable Service, except
where such problem is caused by a negligent or wrongful act of the Subscriber (including, but
not limited to a situation in which the Subscriber reconnects Franchisee equipment incorrectly)
or by the failure of the Subscriber to take reasonable precautions to protect the Franchisee's
equipment(for example, a dog chew).
B. The Franchisee shall provide reasonable notice to Subscribers of the possible
assessment of a late fee on bills or by separate notice.
SECTION 9: DISCONNECTION MENIAL OF SERVICE
A. Cable Service terminated for nonpayment of delinquent accounts in error must be
restored without charge within twenty-four (24) hours of notice. If a Subscriber was billed for
the period during which Cable Service was terminated in error, a credit shall be issued to the
Subscriber if the Service Interruption was reported by the Subscriber.
B. Nothing in these standards shall limit the right of the Franchisee to deny Cable
Service for non-payment of previously provided Cable Services, refusal to pay any required
deposit, theft of Cable Service, damage to the Franchisee's equipment, abusive and/or threatening
behavior toward the Franchisee's employees or representatives, or refusal to provide credit
history information or refusal to allow the Franchisee to validate the identity, credit history and
credit worthiness via an external credit agency.
C. Charges for cable service will be discontinued at the time of the requested
termination of service by the subscriber, except equipment charges may by applied until
equipment has been returned. No period of notice prior to requested termination of service can
be required of Subscribers by the Franchisee. No charge shall be imposed upon the Subscriber
for or related to total disconnection of Cable Service or for any Cable Service delivered after the
effective date of the disconnect request, unless there is a delay in returning Franchisee equipment
or early termination charges apply pursuant to the Subscriber's service contract. If the
Subscriber fails to specify an effective date for disconnection, the Subscriber shall not be
responsible for Cable Services received after the day following the date the disconnect request is
received by the Franchisee. For purposes of this subsection, the term "disconnect" shall include
Subscribers who elect to cease receiving Cable Service from the Franchisee and to receive Cable
Service or other multi-channel video service from another Person or entity.
Lake Elsinore 33
SECTION 10: COMMUNICATIONS WITH SUBSCRIBERS
A. All Franchisee personnel, contractors and subcontractors contacting Subscribers
or potential Subscribers outside the office of the Franchisee shall wear a clearly visible
identification card bearing their name and photograph. The Franchisee shall make reasonable
effort to account for all identification cards at all times. In addition, all Franchisee
representatives shall wear appropriate clothing while working at a Subscriber's premises. Every
service vehicle of the Franchisee and its contractors or subcontractors shall be clearly identified
as such to the public. Specifically, Franchisee vehicles shall have the Franchisee's logo plainly
visible. The vehicles of those contractors and subcontractors working for the Franchisee shall
have the contractor's / subcontractor's name plus markings (such as a magnetic door sign)
indicating they are under contract to the Franchisee.
B. All contact with a Subscriber or potential Subscriber by a Person representing the
Franchisee shall be conducted in a courteous manner.
C. The Franchisee shall send annual notices to all Subscriber informing them that
any complaints or inquiries not satisfactorily handled by the Franchisee may be referred to the
LFA.
D. All notices identified in this Section shall be by either:
(1) A separate document included with a billing statement or included on the
portion of the monthly bill that is to be retained by the Subscriber; or
(2) A separate electronic notification
E. The Franchisee shall provide reasonable notice to Subscribers of any pricing
changes or additional changes (excluding sales discounts, new products or offers) and, subject to
the forgoing, any changes in Cable Services, including channel line-ups. Such notice must be
given to Subscribers a minimum of thirty (30) days in advance of such changes if within the
control of the Franchisee, and the Franchisee shall provide a copy of the notice to the LFA
including how and where the notice was given to Subscribers.
F. The Franchisee shall provide information to all Subscribers about each of the
following items at the time of installation of Cable Services, annually to all Subscribers, at any
time upon request, and, subject to Subsection 10.E., at least thirty (30) days prior to making
significant changes in the information required by this Section if within the control of the
Franchisee:
(1) Products and Cable Service offered;
(2) Prices and options for Cable Services and condition of subscription to
Cable Services. Prices shall include those for Cable Service options, equipment rentals, program
guides, installation, downgrades, late fees and other fees charged by the Franchisee related to
Cable Service;
Lake Elsinore 34
(3) Installation and maintenance policies including, when applicable,
information regarding the Subscriber's in-home wiring rights during the period Cable Service is
being provided;
(4) Channel positions of Cable Services offered on the Cable System;
(5) Complaint procedures, including the name, address and telephone number
of the LFA, but with a notice advising the Subscriber to initially contact the Franchisee about all
complaints and questions;
(6) Procedures for requesting Cable Service credit;
(7) The availability of a parental control device;
(8) Franchisee practices and procedures for protecting against invasion of
privacy; and
(9) The address and telephone number of the Franchisee's office to which
complaints may be reported.
A copy of notices required in this Subsection 10.F. will be given to the LFA at least
fifteen (15) days prior to distribution to subscribers if the reason for notice is due to a change that
is within the control of Franchisee and as soon as possible if not with the control of Franchisee.
G. Notices of changes in rates shall indicate the Cable Service new rates and old
rates, if applicable.
H. Notices of changes of Cable Services and/or Channel locations shall include a
description of the new Cable Service, the specific channel location, and the hours of operation of
the Cable Service if the Cable Service is only offered on a part-time basis. In addition, should
the channel location, hours of operation, or existence of other Cable Services be affected by the
introduction of a new Cable Service, such information must be included in the notice.
I. Every notice of termination of Cable Service shall include the following
information:
(1) The name and address of the Subscriber whose account is delinquent
(2) The amount of the delinquency
(3) The date by which payment is required in order to avoid termination of
Cable Service; and
(4) The telephone number for the Franchisee where the Subscriber can receive
additional information about their account and discuss the pending termination.
Lake Elsinore 35
NR
Melissa A.Reed LAW OFFICE OF MELISSA A. REED 1 8895 Appian Way I Los Angeles, CA 90046
ATTORNEY PHONE:323.848.9616 1 FAx:801.650.5072 I EMAIL:melissa.alden.reed@sbcglobal.net
May 15, 2006
VIA OVERNIGHT MAIL
City of Lake Elsinore
Attn: Frederick Ray, City Clerk
130 S Main Street
Lake Elsinore CA 92502
Re: Verizon California Inc. — City of Lake Elsinore Cable Franchise
Agreement
Dear Mr. Ray:
Enclosed please find one original signed copy of the Cable Franchise Agreement
between Verizon California Inc. and the City of Lake Elsinore, California.
Pursuant to Section 2.2 of the cable franchise agreement, the effective date of
the agreement is May 9, 2006, the date of the last signature.
It is my understanding that the Lake Elsinore ordinance adopting the franchise
agreement will become effective on May 25, 2006. Please send me a signed
copy of the adopting ordinance when it becomes available.
Best Regards,
Melissa A. Reed