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Ord 96-264 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 ORDINANCE NO. 96-264 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, GRANTING A NONEXCLUSIVE CABLE FRANCHISE TO TCI OF AUBURN, INC. AND PROVIQING FOR A FRANCHISE FEE, TERMS OF FRANCHISE, FRANCHISE AREA, TECHNICAL STANDARDS AND EVALUATIONS, REPORTING REQUIREMENTS, ACCESS CHANNELS, PENALTIES, BOND AND INSURANCE REQUIREMENTS AND OTHER FRANCHISE PROVISIONS IN CONNECTION WITH OPERATING A CABLE SYSTEM FOR THE DISTRIBUTION OF TELEVISION SIGNALS. 16 17 WHEREAS, pursuant to RCW 35A.11.030, the City of Federal Way has the power, among other things, to grant franchises; and WHEREAS, on August 1, 1995 the City Council has approved a master cable ordinance, the terms of which will regulate the provision of cable communication systems within the City of Federal Way and which apply uniformly to this franchise as well as to all cable franchises in the City of Federal Way; and WHEREAS, prior to the effective date of incorporation of the City of Federal Way, King County granted a non-exclusive cable communication system franchise to, amongst other entities, TCI of Auburn, Inc., a Washington corporation (hereinafter "TCI"), and its predecessor companies, by King County Ordinances No. 978, and motions and amendments related thereto and Franchise No. 547 and amendments thereto (collectively, the "TCI Franchise"); and WHEREAS, the TCI Franchise as granted by King County to TCI expired on September 6, 1991; and WHEREAS, by Ordinance No. 93-162, the City of Federal Way granted an extension of the TCI Franchise through February 14, 1994, and by Ordinance # 96-264, Page 1 C(Q)~lf 10 1 I 12 13 14 15 16 2 3 Ordinance No. 94-205 granted an extension until February 14, 1995, and by Ordinance No. 95-228 granted an extension until April 14, 1995; and WHE:RE:AS, the City and TCI have met and negotiated non-exclusive franchise terms; and 4 5 WHEREAS, the Finance and Economic Development Council Committee met and considered this ordinance on January 25, 1996 and 6 7 directed that this ordinance be forwarded to the full Council for approval; and WHEREAS, the full City Council had a first reading of this ordinance on 8 9 February 6, 1996 at its regularly scheduled meeting; and WHEREAS, the full City Council considered this ordinance on February 20, 1996 at a public hearing; and WHEREAS, the City Council finds that this ordinance is in the public interest; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: Ordinance # 96-264, Page 1-A Section Section 1: Section 2: Section 3: Section 4: Section 5: Section 6: Section 7: Section 8: Section 9: Section 10: Section 11: Section 12: Section 13: Section 14: Section 15: Section 16: Section 17: Section 18: Section 19: Section 20: Section 21: Section 22: Section 23: TABLE OF CONTENTS Page Relation To Master Ordinance .........................................................4 Purpose................................................................................................4 Grant of Franchise..............................................................:...............5 Length of Franchise ...........................................................................5 Application...........................................................................................5 Franchise Area....................................................................................5 Franchise Fee .................................................................................5-7 A. Late Payment.................................................................................6 B. Financial Reports...........................................................................6 C. Audit by City............................................................................... 6, 7 D. Non-waiver.....................................................................................7 E. Taxes................................................................................................7 Technical Standards..................................................................... 7, 8 Technical Evaluation .................................................................... 8, 9 Potential Reimbursement of Relocation Costs..............................9 Building Moving Indemnification .....................................................9 ,Reports..........................................................................................9 10 Periodic Meetings............................................................................ 10 Customer Service...................................................................... 1 0, 11 Telephone Response ...............................................................11, 12 Failure to Improve Customer Service.......................................... 12 Refunds for Outages ....................................................................... 12 Termination of Subscriber Service .~......................................12, 13 Future Provisions............................................................................. 13 A. Upgrade........................................................................................ 13 B. Other Services.......................................................................13, 14 Emergency Override....................................................................... 14 Access Channels....................................................................... 14-16 A. Government Access ................................................................... 15 B. Public Access .............................................................................. 15 C. Educational Access.................................................................... 15 Access Broadcasting Equipment.................................................. 16 Public Buildings............................................................................... 16 Ordinance # 96-264, Page 2 Section Section 24: Section 25: Section 26: Section 27: Section 28: Section 29: Section 30: Section 31: Section 32: Section 33: Section 34: Section 35: Section 36: Section 37: Section 38: Section 39: Section 40: Section 41: Section 42: Section 43: TABLE OF CONTENTS Page Institutional Networks (I-Nets) .................................................16, 17 City-wide Institutional Network Interconnection......................... 17 Procedure for Implementation of PEG Access Equipment...........................................................................:............17 Coverage ....................................................................................17, 18 Discounts ..........................................................................................18 Cable Availability............................................................................. 18 Extraordinary Installation Charges.........................................18, 19 Theft of Service ................................................................................ 19 Penalties .....................................................................................19-21 Franchising Costs............................................................................ 21 Extemal Franchising Costs............................................................ 21 Performance Bond .......................................................................... 22 Insurance """"""""""""""""""""""""""'".............................22, 23 A. Minimum Limits .....................................................................22, 23 B. Mandatory Insurance Provisions ............................................. 23 C. Verification of Coverage............................................................ 23 Independent Contractors ............................................................... 24 Acceptance.......................................................................................24 General Provisions.......................................................................... 24 A. Entire Agreement....................................................................... 24 B. Modification ................................................................................24 C. Full Force and Effect ................................................................. 24 D. Assignment...........................................................................24, 25 E. Attorney Fees ............................................................................. 25 F. No Waiver ................................................................................... 25 G. Goveming Law........................................................................... 25 H. Authority...................................................................................... 25 I. Notices...................................................................................25, 26 J. Captions......................................................................................26 K. Time of Essence ........................................................................ 26 L. Remedies Cumulative .............................................................. 26 Force Majeure ..................................................................................26 Severability.................................................................................26, 27 Ratification ........................................................................................27 Effective Date ...................................................................................27 Ordinance # 96-264, Page 3 TABLE OF CONTENTS APPENDICES Appendix A......................................................... Educational Access Equipment List Appendix B.........................................................Government Access Equiþment List Appendix C ..................................................Access and I-Net Interconnection Point Appendix D ........................................................................Educational Drop Location Ordinance # 96-264, Page 4 2 3 4 5 6 7 8 9 10 1 1 12 13 14 Ii 15 16 17 18 19 20 21 22 23 24 25 26 27 Section 1: Relation To Master Ordinance. The provisions and the definitions of terms contained in the Master Ordinance adopted by the Federal Way City Council on August 1, .1995 (the "Ordinance") shall apply to this Franchise Agreement as if fully set forth in the Franchise Agreement, provided that, in the event of a conflict between the provisions of the Ordinance and the Franchise Agreement, the express provisions of the Franchise Agreement shall govern. The express provisions of this Agreement constitute a valid and enforceable contract between the parties. Subject to federal and state preemption, the material terms and conditions contained in this Franchise Agreement may not be unilaterally altered by the Operator or City through subsequent amendment to the Ordinance, any other Ordinance, rule, regulation, resolution, or other enactment of the City, except in the lawful exercise of the City's police power. Section 2: PurDose. This Ordinance shall establish a non-exclusive Franchise and shall constitute an agreement between the City of Federal Way, a Washington municipal corporation (hereinafter the "City") and TCI of Auburn, Inc., a Washington corporation (hereinafter the "Operator"). The Operator promises to construct, maintain, and operate a cable television system for the distribution of cable television services pursuant to the terms of this Franchise. The City agrees to grant the Operator all necessary rights and privileges to use Public Rights of Way necessary for a cable television system. This Franchise shall, as of its effective date, supersede and replace all existing franchises previously granted by the City to the Operator or any of its predecessors, subsidiaries or affiliated companies. Ordinance # 96-264, Page 5 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 Section 3: Grant of Franchise For the purposes of constructing, operating and maintaining a system in the Franchise Area, the Operator may erect, install, construct, repair, replace, reconstruct and retrain in, on, over, under, upon across and along t.he streets 4 5 and public property such lines, cables, fiber optics, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments and other 6 7 property and equipment as are necessary and appropriate to the operation of the system. 8 9 Section 4: Length of Franchise. The length of this Franchise shall be for a term of ten (10) years 10 1 I commencing on March 21, 1996 and terminating at midnight on March 20, 12 13 2006. Section 5: ADplication. The Operator shall submit an application on applicable forms and furnish a non-refundable filing fee of Five Thousand Dollars ($5,000.00) which is not in lieu of franchise fees or other payments owed to the City. Section 6: Franchise Area. The Operator's service area shall be the entire incorporated area of the City, in its present incorporated form or in any later reorganized, consolidated, enlarged, or re-incorporated form ("Franchise Area"). In the event of any incorporation or annexation of any town or city which incorporates any portion of the Franchise Area, those portions shall automatically be removed from the description of the Franchise Area upon completion of such incorporation or annexation. Section 7: Franchise Fee. The Operator shall pay a quarterly estimate to the City on or before the forty-fifth (45th) day following the calendar quarter equal to five percent (5%) of Ordinance # 96-264, Page 6 2 3 4 5 6 7 8 9 10 1 1 12 13 14 ¡¡; 15 16 17 18 19 20 21 22 23 24 25 26 27 gross revenues, for the preceding calendar quarter as defined in the Master Ordinance. Revenues that are derived as a portion of a national or regional service shall be computed on a per Subscriber basis if such determination cannot be achieved by other means. Inasmuch as this Franchise is granted solely for the operation of a cable television system, revenues from telephony and data transmission are not to be included as gross receipts, but will be the concem of a separate franchise if and when the Operator may apply for same. The City may modify the franchise fee if so permitted by federal and state law. Prior to implementation of any modification in franchise fees the Operator may request a public hearing by the City Council to discuss said modification. Following such a hearing the City Council may require the implementation of such modification in accordance with the provisions of this Ordinance. A. Late Payment. Any quarterly franchise fee not paid by the Operator within forty-five (45) days of the end of a quarter shall bear interest from the due date until paid, at the rate of twelve percent (12%), per annum or the maximum amount allowed under State law, whichever is greater. B. Financial Reports. Each franchise fee payment shall be accompanied by a financial report on a form provided by the City showing the basis for the Operator's computation, including, without limitation, revenues received by the Operator within the City from such items as basic service, expanded basic service, pay TV service, other applicable sources of revenue, and such other information directly related to confirming the amount of the Operator's gross revenues as may be reasonably required by the City. C. Audit bv City. The City shall have the right, upon reasonable written notice of no less than ten (10) working days, to inspect the books and records of the Operator during normal business hours, for the purpose of Ordinance # 96-264, Page 7 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 ascertaining the actual gross revenues collected by the Operator. Such audit shall only go back five (5) years and the City shall be required to close the audit within six (6) months from the date of completion of work in the field at the Operator's office(s). In the event that such audit discloses a discrepancy of 4 5 more than ten percent (10%) between the financial report submitted by the Operator with a quarterly payment and the actual gross revenues collected by 6 7 the Operator, the Operator agrees to pay to the City the costs of such audit. In the event that such audit results in a determination that additional franchise 8 9 fees are due the City, the Operator further agrees to pay interest as required for late payment on such additional franchise fees computed from the date on which such additional franchise fees were due and payable. D. Non-waiver. Acceptance of any franchise fee payment by the City shall not be construed as an agreement by the City that the franchise fee paid is in fact the correct amount, nor shall acceptance of payment by the City be construed as a release or waiver of any claim the City may have for further or additional sums payable under the provisions of this Ordinance. E. Nothing in this Section shall limit the Operator's Taxes. obligation to pay applicable local, state, or federal taxes. Section 8: Technical Standards. Subject to federal, state and local law, the Operator shall comply with FCC rules, Part 76, Subpart K, Section 76.601 through 76.610 as amended, hereafter, and, at the minimum, the following laws, rules regulations and procedures: 1. 2. Applicable City, state and national/federal codes and ordinances; Applicable Utility Joint Attachment Practices; 3. The National Electric Safety Code; ANSI C2; 4. City Utility Code Requirements; Ordinance # 96-264, Page 8 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 5. 6. City rights-of-way procedures; Bell System Code of Pole Line Construction. 4 5 The Operator shall notify the City prior to the date of the semi-annual FCC Proof of Performance Test. The City, as authorized by FCC r~gulations, may, at its option, monitor the taking of such tests. Upon request the Operator 6 7 shall in any event provide a copy of the results of the system evaluation to the City. 8 9 Section 9: Technical Evaluation. Upon receipt of a pattern of reoccurring customer complaints or other empirical data such as the Operator's non-compliance with FCC standards or regulations, the City may notify the Operator of its concerns regarding the technical performance of the cable television system. The Operator then shall take all necessary steps to either correct the perceived problem or demonstrate to the City that the alleged difficulty. is not .attributable to the operation of the system. If the Operator is making a good faith effort to correct such deficiencies, it and the City shall agree to a reasonable date by which time the system shall again be in conformance. If the Operator has failed to rectify the situation by that date, the City may retain an independent consultant to conduct an analysis of the cable system and its performance and submit a report of such analysis to the City. The City shall take into consideration any efforts taken to correct such deficiencies. The report prepared by the consultant in response to the City's request for a system evaluation shall include the following information: 1. A description of the technical problem in cable system performance which precipitated the special tests; 2. What cable system components were tested; 3. The equipment used and procedures employed in testing; Ordinance # 96-264, Page 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 4. The method, if any, by which specific performance problems may be resolved; and 5. Any other information pertinent to said tests and analyses which may be required by the City. 4 5 If the tests indicate that the system is not in material compliance with FCC standards or the requirements of the Franchise, the Ordinance or other 6 7 applicable law, the Operator shall reimburse the City for any costs involved in conducting such tests, such as consultant fees or other expenses. 8 9 Section 10: Potential Reimbursement of Relocation Costs. In the event that the Operator may be required to move or relocate its facilities in accordance with Section 8: Construction Standards of the Master Ordinance and other sources of funding such as Local Improvement District (LID) or other grants are available to the City, the Operator shall be proportionally reimbursed from these funds. Section 11: Building Moving Indemnification In those situations wherein the Operator may be required under Section 12: Building Moving of the Master Ordinance to temporarily move its lines or poles it shall be indemnified and held harmless by the permittee from any and all damages or claims of whatsoever kind or nature caused directly or indirectly from this action except to the extent such damages or claims are a result of the Operator's negligent action. The Operator may also require payment in advance from the permittee. Section 12: Reports. The Operator shall furnish, upon request, a report of its activities as appropriate. Such report shall include the following: 1. 2. The Operator's most recent annual report; A copy of the 10-K Report, if required by the Securities and Ordinance # 96-264, Page 10 10 I 1 12 13 16 17 18 19 20 21 22 23 24 25 26 27 2 3 Exchange Commission; The number of residences within the City for which cable is 3. available; 4 5 4. 5. The number of Subscribers with basic services; The number of Subscribers with expanded basic services; 6 7 6. 7. The number of Subscribers with premium services; The number of Subscribers with addressable services; 8 9 8. The number of hook-ups in the reporting period; The number of disconnects in the reporting period; 9. 10. Total number of miles of cable in the City; 11. A summary of all service calls received by category, length of time taken to resolve and action taken to provide resolution; 14 15 12. Copies of all FCC complaint logs; 13. A statement of its current billing practices, and a sample copy of the bill format; 14. A current copy of its Subscriber service contract; 15. A current copy of its cable rate sheet delivered to Subscribers; and 16. Report on operations - Such other reports that may be appropriate under State and Federal law and for which data is available. Section 13: Periodic Meetings. Upon request, the Operator shall meet with designated City officials and/or designated representative(s) to review the performance of the Operator for the preceding period. The subjects may include, but are not limited to, those items covered in the periodic reports and performance tests. Section 14: Customer Service. The Operator shall at all times be in compliance with FCC Customer Service obligations 76.309, Subpart II, as now existing or as may be amended, Ordinance # 96-264, Page 11 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 which standards are incorporated into this Franchise by reference ("FCC Customer Service Standards"). The City, and the Operator may, however, agree upon more stringent standards in accordance with Section 632 (c) of the Act. 4 5 Section 15: TeleDhone Response. In order that the City may be informed of the Operator's success in 6 7 achieving satisfactory customer relations in its telephone answering functions, the Operator shall, upon request by the City, and routinely no less than 8 9 quarterly, provide the City with a summary that will provide, at a minimum, the following information: 1. 2. Number of calls received per hour; Number of rings prior to an answer; 3. 4. Average talk time; Number of calls abandoned by the caller; 5. 6. Average hold time; Percentage of time all lines are busy; and 7. An explanation of any abnormalities. This report may be a regional report until such time that data specific to the City's jurisdiction is available. When such data is available, this report shall be a local City report. In addition and when technically feasible, the Operator will use its best efforts to install a telephone reporting system that will be specific to the City alone. At the time that Reports (Section 12) are required, the Operator shall furnish an updated status report of progress made to this end. In agreeing to such temporary treatment, the City does not waive its rights to require such reporting in accordance with FCC Title 47CFR Subpart H(ii) (c). This data will be compared to minimum standards of the FCC Customer Service Standards. Ordinance # 96-264, Page 12 2 3 4 5 6 7 8 9 10 1 1 12 13 14 M 15 16 17 18 19 20 21 22 23 24 25 26 27 Calls for service generated during a period of system outages due to an emergency affecting more than twenty-five (25) customers may be excluded from the service response calculations. Except for those defined by FCC regulations the City shall have the final determination as to what constitutes a system failure due to an emergency and which calls shall be excluded from the service level calculations. Section 16: Failure to Improve Customer Service. The City or its designee shall review telephone response and customer service information with the Operator. It will be assumed that improvements will be made by the Operator in the areas of non-compliance from the last reporting period. Failure to do so may result in the calling of a public hearing by the City Council for the purpose of examining the reasons, if any, why such improvements were not achieved by the Operator. An unsatisfactory record will also result in the hearings being made part of an exhibit under Section 626(c)(1)(A) and (B) of the Act alleging that such practices have failed to conform with future refranchising requirements as stated therein. The Operator's Corporate office, if appropriate, shall be advised of the City's findings. Section 17: Refunds for Outages. No charge for the period of an outage shall be made to the Subscriber if the Operator has knowledge that the Subscriber was without service for a period exceeding twenty-four (24) hours. Section 18: Termination of Subscriber Service. Upon termination of any Subscriber, and upon Subscriber's request the Operator shall promptly remove from the Subscriber's premises, all of its facilities and equipment, except for drop cable and internal wiring. Upon notification from subscribers, all charges for services will be discontinued. Ordinance # 96-264, Page 13 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 Subscriber shall return all equipment in accordance with the terms and conditions of the customer contract (work order). 4 Should the Operator require the Subscriber to return the equipment, the Operator shall establish convenient hours including evening and. weekend 5 6 hours, for return of the equipment, and the Subscriber shall have a reasonable length of time in which to return the equipment. The Subscriber shall be 7 8 advised of the date by which the equipment must be returned before a charge may be imposed for failure to return equipment. Section 19: Future Provisions. A. Ucorade. The Operator shall complete the upgrading of the cable television system to a minimum of seventy (70) channel capacity no later than forty-eight (48) months from the effective date of this Franchise. In the event that such project encounters unforseeable delays, the City will be fully informed of such facts and the Operator may request an extension to such completion date. B. Other Services. Because of the quickening pace of electronic communication development it is essential that the City be provided with such new features when they become technologically and economically feasible. While such potential services are too numerous to enumerate, they include, but without limitation, computer interaction, interactive video on demand, interactive shopping, Video Dial Tone (VDT) and similar developments. Recognizing that these types of services are not generally available at the present and that the City's future franchise term expiration may not coincide with the advent of such services, the City may require that these features be made available to the City within twelve (12) months upon one or more of the following occurrences: 1. Forty percent (40%) of other franchising authorities in the King- Ordinance # 96-264, Page 14 2 3 4 5 6 7 8 9 10 I 1 12 13 14 ~ 15 16 17 18 19 20 21 22 23 24 25 26 27 Pierce-Snohomish County area in Washington state have been furnished such services. 2. Any adjacent community has had these features made available to its Subscribers. However, prior to the implementation, the Operator may request a public hearing to review the cost/benefit to the City's Subscribers of such options. The City Council then, at its discretion, may require the activation of such feature(s), extend the time requirement, or postpone the event until further hearing. The Operator shall not be required to supply any service if the provision of such a service subjects the Operator to regulation by any governmental agency such as a utility or common carrier. Section 20: Emergency Override. The Operator shall be in compliance by no later than the date mandated with FCC Regulations requiring installation of an Emergency Alert System (EAS) and provide an audio interrupt on all channels and video message on at least one channel during an emergency. The Operator shall establish a process which will provide a character generated scroll and will make its best effort to furnish a voice override notifying viewers and listeners of an emergency. Subject to federal and state laws and regional planning authorities, the City may preempt the operation of the system at any time during an emergency. The City, at its option may elect to share this service with adjoining communities. Section 21: Access Channels. In order to provide uniform reception of Public, Education and Government (PEG) access channels by all residents of the City, the Operator, upon request by the City Council, will make the required interconnection with Viacom in accordance with the following schedule: Ordinance # 96-264, Page 15 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 A. Government Access. One (1) channel capable of cablecasting character generated, taped, or live programming within twelve (12) months following the effective date of this Franchise. B. Public Access. One (1) channel within twenty-four (24) months of the execution of the Franchise or twelve (12) months following the upgrade, 4 5 6 7 whichever is the earlier. C. Educational Access. One (1) channel within twenty-four (24) 8 9 months from the effective date of this Franchise or twelve (12) months following an upgrade, upon a showing to the City Council by community educators of the need for such a channel and the availability of appropriate programming and upon the City Council's consent. Notwithstanding the above, the City may elect initially to share Public, Educational and Government (PEG) access channels with other jurisdictions until such time as the community interest is deemed sufficient to warrant a City only channel. The decision to make such initial channel implementation is solely at the discretion of the City. Additional channels over and above these shall be made available when a channel is used for access purposes with programming during fifty percent (50%) of the hours between 10:00 a.m. and 10:00 p.m., during any consecutive ten (10) week period. Commercial, Public Broadcast Service (PBS), programs and character generated programming are not included as part of the criteria to determine additional channel usage. Programming on additional channel(s) shall be distinct and non-repetitive of the previous channel(s). The City shall provide a notarized statement verifying the need for additional channel(s) and such channel(s) shall be supplied by the Operator within six (6) months of such request. Ordinance # 96-264, Page 16 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 Section 22: Access Broadcasting Eauipment. Upon request by the City Council, the City shall require the equipment, 4 5 or its equivalent, listed in Appendix "82". However, prior to that time and within sixty (60) days subsequent to the completion of the channel upgrad~, the City shall be furnished by the Operator with electronic message board equipment, 6 7 or its equivalent, as specified in Appendix "81". In order to furnish this equipment, upon request of the City Council, the Operator shall pay to the City the following amounts proportionate to the number of subscribers in 8 9 accordance with the following schedule which payment date will be at the election of the City: 1. On or after five (5) years from the effective date of this Franchise- Twenty Thousand Dollars ($20,000). 2. On or after eight (8) years from the effective date of this Franchise- Five Thousand Dollars ($5,000.00). Section 23: Public Buildings. The Operator shall provide basic service without charge for installation or monthly rate to all public buildings and schools including without limitation, those specified in Appendix "D" as well as other such buildings that may be constructed during the period of the Franchise. Section 24: Institutional Networks (I-Nets). Upon City Council's request, all public buildings shall be provided with a private communications network outside of the Subscriber system. This closed system shall be capable of upstream and downstream transmission and may use any technically suitable method (e.g. hardline, microwave with scramblers/descramblers, etc.) selected by the Operator. New buildings constructed subsequent to the date of this Franchise shall likewise be furnished the same capability providing they meet the trunk and distribution Ordinance # 96-264, Page 17 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 line requirements. 2 3 Nothing contained in this Franchise shall obligate the Operator to provide any service that would, by virtue of the provision of such service, require the Operator to become a common carrier. 4 5 Section 25: City-wide Institutional Network Interconnection. 6 7 In order to provide a uniform communications system throughout the City, the Operators shall provide interconnection of I-Nets as appropriate. The 8 9 map shown as Appendix "C" indicates a suggested interconnection point. The sharing of costs of such interconnection will be left to the individual Operators. Section 26: Procedures for Implementation of PEG Access Equipment Because both the dynamics of the cable industry and the perceived application of these features may change, the City may elect to defer the implementation of the access equipment described in the appendices until a more appropriate time. The City and the Operator therefore agree to meet at intervals of no less than annually to review this subject. At that time the City may require proportionate monies from the Operator to purchase the types of equipment indicated and the Operator shall immediately pay such funds to the City upon its request. The parties acknowledge that such capital costs shall pass through costs to Subscribers as provided in 47CFR§ 76.922 or as amended. Section 27: Coverage. Subject to the density considerations in Section 29: Cable Availability, the City shall be provided with cable television service in the entire Franchise Area. If such a condition does not now exist, the Operator shall complete such wiring and be in a position to offer cable reception to all residents within twelve (12) months from the grant of the Franchise. Areas subsequently annexed Ordinance # 96-264, Page 18 10 1 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 shall be provided with cable availability within twelve (12) months. The Operator shall not be required to furnish cable to those areas having cable service provided by another Operator. In those areas which are adjacent 4 5 to an unbuilt area, the Operator with the nearest trunk and/or distribution line will be responsible to provide the required cable service. 6 7 Section 28: Discounts. The Operator shall offer a discount of thirty percent (30%) from the normal charge for basic services and installation to those individuals age sixty- 8 9 two (62) or older or disabled who are the legal owner or lessee/tenant of their residence provided that their combined disposable income from all sources does not exceed the Poverty' Income ,guidelines of the Housing and Urban Development ("HUD") standards for the Seattle-Everett area for the preceding calendar year. The City or its designee shall be responsible for certifying to the Operator that such applicants conform to the specified criteria. Section 29: Cable Availability. Cable service shall be available to all residents within the City provided there are at least thirty-five (35) dwelling units per street mile. Cable service shall not be denied to any group of potential residential cable Subscribers because of the income of the residents of the local area in which such group resides. Section 30: Extraordinary Installation Charges. All residents requesting cable service and living within one hundred fifty (150) feet of existing cable distribution or trunk lines shall have the cable installed at the prevailing published installation rate. Underground services shall be furnished on a time and material basis. In the event a request is made for service and the residence is more Ordinance # 96-264, Page 19 2 3 4 5 6 7 8 9 10 1 1 12 13 14 !I@ 15 16 17 18 19 20 21 22 23 24 25 26 27 than one hundred fifty (150) feet from an existing cable distribution or trunk line, the overhead installation shall be completed on a time and material cost basis for that portion of the service line extending beyond one hundred fifty (150) feet. The Operator shall enter into a contractual agreement with the resident(s) requesting service wherein the Operator shall be reimbursed for its actual construction costs. In such instance, upon request, the Operator shall make a pro-rata refund if and when additional dwellings are serviced by the same distribution line. Section 31: Theft of Service In addition to those criminal and civil remedies provided by state and federal law, it shall be a misdemeanor for any person, firm, or corporation to create or make use of any unauthorized connection, whether physically, electrically, acoustically, inductively, or otherwise, with any part of the System without the express written consent of the Operator. Further, without the express written consent of the Operator, it shall be a misdemeanor for any person to tamper with, remove, or injure any property, equipment, or part of the System or any means of receiving services provided thereto. Subject to applicable federal and state law, the Franchising Authority shall incorporate into its criminal code, if not presently a part thereof, .criminal misdemeanor law which will enforce the intent of this section. Section 32: Penalties. The City shall notify the Operator in writing stating the nature of a perceived deficiency in the operation of the cable system or the Operator's failure to comply with conditions of the Franchise and setting forth the time the Operator will be allowed to rectify such alleged improper condition. The Operator may request an extension of time if construction is suspended or Ordinance # 96-264, Page 20 2 3 4 5 6 7 8 9 10 1 1 12 13 14 iI 15 16 17 18 19 20 21 22 23 24 25 26 27 delayed by the City, or where unusual weather, natural consequences (e.g. earthquakes, floods, etc.), extraordinary acts of third parties, or other circumstances which are reasonably beyond the control of the Operator delay progress, provided that the Operator has not, through its own ~ctions or inactions, contributed to the delay. The amount of additional time allowed will be determined by the City. The extension of time in any case shall not be greater than the extent of the actual non-contributory delay experienced by the Operator. Failure of the Operator to correct these deficiencies, except in those circumstances cited above, may result in the City assessing monetary penalties of Two Hundred Dollars ($200.00) per day for each day beyond thirty (30) days that the Operator has not fulfilled the requirement(s), and/or may result in the City calling a hearing to determine if a violation of the Franchise has occurred in accordance with Section 28 Revocation for Cause of the Master Ordinance. Monetary penalties may be assessed for any Franchise, Ordinance, or other violation including, without limitation: 1. Failure to conform to customer service standards as required by, Section 14: Customer Service. 2. Upgrade and features as required by Section 19: Future Provisions. 3. PEG access channel allocations as required by Section 21: Access Channels. 4. Public access facilities as required by Section 22: Access Broadcasting Equipment. 5. Funds for access equipment as required by Section 22: Access Broadcasting Equicment. Ordinance # 96-264, Page 21 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 3 6. Institutional network activation as required by Section 24: Institutional Networks (I-Nets). 4 5 7. Coverage of existing and future annexed areas as r~quired by Section 27: Coverage. 6 7 Monetary penalties may be assessed retroactive to the date that notification was provided to the Operator in such cases where the Operator has 8 9 been non-responsive in correcting the situation or in the case of flagrant violations. If payment of any of these penalties is delinquent by three (3) months or more, the City may require partial or total forfeiture of performance bond or other surety. Section 33: Franchisin9 Costs The Operator shall pay to the City upon acceptance of any initial franchise or renewal franchise granted hereunder, the City's out-of-pocket costs associated with the franchising process. Costs shall include such items as consulting fees, expenses, and the costs of publishing notices and ordinances, etc. Such payment is not to be considered in lieu of franchise fee payments. Payment is due within thirty (30) days of receipt of appropriate invoice from the City. Section 34: External Franchising Costs Prior to expenditure of capital for any franchise related requirements that would be treated as an external cost passed through to customers under 47CFR§76.922, the Operator shall notify the City of its intent to exercise its right and the amount to be passed through to customers. The City may waive the franchise related requirement if, in the City's opinion, the increase in rates would be a burden on subscribers. Ordinance # 96-264, Page 22 2 3 4 5 6 7 8 9 10 1 1 12 13 14 ¡; 15 16 17 18 19 20 21 22 23 24 25 26 27 Section 35: Performance Bond, A franchisee shall promptly repair or cause to be repaired any damage to City property caused by a franchisee or any agent of a franchisee. A franchisee shall comply with all present and future ordinances and ~egulations regarding excavation or construction and, if deemed necessary by the City, shall be required to post a performance bond or other surety acceptable to the City in an amount specified by the City in favor of the City warranting that all restoration work will be done promptly and in a workmanlike manner and that penalties, if any, after final adjudication are paid to the City within ninety (90) days of such finding. Section 36: Insurance. A. Minimum Limits. The Operator shall, concurrently with the filing of an acceptance of this Franchise, furnish to the City and file with the City Clerk certificate(s) of insurance which will be maintained in full force and effect, at its own cost and expense, at all times during the existence of this Franchise, providing insurance coverage which is at least as broad as insurance service office ("ISO") Form Number CG 00001 (commercial general liability), including "X", "C", "U" and ISO Form Number CA 00001 (commercial auto): (1) Workers compensation and employer's liability insurance in amounts sufficient pursuant to the laws of the State of Washington; (2) Commercial general liability insurance or self-insurance with combined single limits not less than Two Million Dollars ($2,000,000.00) for bodily injury, including personal injury or death, products liability, contractual coverage, operations, explosion, collapse, underground and property damage coverage; and (3) Automobile liability insurance with limits of liability not less than $1,000,000 each occurrence for bodily injury, including death and Ordinance # 96-264, Page 23 2 3 4 5 6 7 8 9 10 1 1 12 13 14 !Ii 15 16 17 18 19 20 21 22 23 24 25 26 27 property damage. B. Mandatory Insurance Provisions. The commercial general liability insurance and automobile liability insurance policies shall be endorsed to contain the following provisions: (1) The City, its officers, elected officials, employees, and volunteers are to be named as additional insured; (2) Coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability; (3) Coverage shall not be suspended, canceled, modified or reduced except after thirty (30) days prior written notice to the City delivered by certified mail, return receipt requested; and (4) Coverage shall be primary as to the City, its officers, officials, employees and volunteers. Any insurance or self-insurance by the City, its officers, officials, employees or volunteers shall be in excess of Operator's required insurance. C. Verification of Coverage. Operator shall furnish the City with certificates of insurance and original endorsements evidencing the coverages requires by this Section. The certificates and endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf and must be received and approved by the City prior to the commencement of any work. At the City's request, Operator shall deliver certificates of insurance of all required insurance policies. In satisfying the foregoing insurance requirements, Operator may self-insure against risks in such amounts and upon such verification as is acceptable to the City. Operator's failure to maintain such insurance policies shall be grounds for the City's immediate termination of this Franchise. Ordinance # 96-264, Page 24 10 1 1 12 13 14 15 16 1 7 18 19 20 21 22 23 24 25 26 27 Section 37: IndeDendent Contractors. 2 3 This Franchise shall not be construed to provide that the Operator is the agent or legal representative of the City for any purpose whatsoever. The 4 5 Operator is not granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of the City or to bind the City in any manner whatsoever. 6 7 Section 38: Acceptance. This grant of Franchise and its terms and provisions shall be accepted 8 9 by the Operator by the submission of a written instrument, executed and sworn to by a corporate officer of the Operator before a Notary Public, and filed with the City within sixty (60) days after the effective date of this Franchise. Such instrument shall evidence the unconditional acceptance of this Franchise and the promise to comply with and abide by all its provisions, terms and conditions. Section 39: General Provisions. A. Entire Agreement. This Franchise contains all of the agreements of the Parties with respect to any matter covered or mentioned in this Franchise and no prior agreements or understandings pertaining to any such matters shall be effective for any purpose. B. Modification. No provision of this Franchise may be amended or added to except by agreement in writing signed by both of the Parties. C. Full Force and Effect. Any provision of this Franchise which is declared invalid, void or illegal shall in no way affect, impair, or invalidate any other provision hereof and such other provisions shall remain in full force and effect. D. Assignment. Operator shall not have the right to transfer or assign, in whole or in part, any or all of its obligations and rights hereunder Ordinance # 96-264, Page 25 10 1 1 12 13 14 15 18 19 20 21 22 23 24 25 26 27 2 3 without the prior written consent of the City. Any assignee shall, within thirty (30) days of the date of any approved assignment, file written notice of the assignment with the City together with its written acceptance of all terms and 4 5 conditions of this Franchise. E. Attorney Fees. In the event the City or the Operator defaults on 6 7 the performance of any terms in this Franchise, and the Operator or the City places the enforcement of the Franchise or any part thereof, or the collection of 8 9 any monies due, or to become due hereunder, in the hands of an attorney, or file suit upon the same, each party shall pay its own costs, including reasonable attorneys' fees, costs and expenses. The venue for any dispute related to this Franchise shall be King County, Washington. F. No Waiver. Failure of the City to declare any breach or default immediately upon the occurrence thereof, or delay in taking any action in connection with, shall not waive such breach or default, but the City shall have the right to declare any such breach or default at any time. Failure of the City to 16 I 7 declare one breach or default does not act as a waiver of the City's right to declare another breach or default. G. Governing Law. This Franchise shall be made in and shall be governed by and interpreted in accordance with the laws of the State of Washington. H. Authority. Each individual executing this Franchise on behalf of the City and Operator represents and warrants that such individuals are duly authorized to execute and deliver this Franchise on behalf of the Operator or the City. I. Notices. Any notices required to be given by the City to Operator or by Operator to the City shall be delivered to the parties at the following addresses: Ordinance # 96-264, Page 26 9 10 1 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 1 2 3 4 5 6 Operator: TCI of Auburn, Inc. General Manager 4020 Auburn Way N. Auburn, WA 98002 City: City Manager City of Federal Way 33530 1 st Way South Federal Way, WA 98003 Any notices may be delivered personally to the addressee of ,the notice or may be deposited in the United States mail, postage prepaid, to the address 7 8 set forth herein. Any notice so posted in the United States mail shall be deemed received three (3) days after the date of mailing. J. Captions. The respective captions of the Sections of this Franchise are inserted for convenience of reference only and shall not be deemed to modify or otherwise affect in any respect any of the provisions of this Franchise. K. Time of Essence. Time is of the essence of this Franchise and each and all of its provisions in which performance is a factor. L. Remedies Cumulative. Any remedies provided for under the terms of this Franchise are not intended to be exclusive but shall be cumulative with all other remedies available to the City at law, in equity or by statute. However, the City will not simultaneously collect penalties under Section 28: Penalties and payment under Section 30: Performance Bond. Section 40: Force Majeure Prevention or delay of any performance under this Franchise Agreement due to circumstances beyond the Operator's control or acts of God, shall not be deemed non-compliance or a violation of this Agreement. Section 41: Severability. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of the Ordinance # 96-264, Page 27 8 9 10 11 CITY OF FEDERAL WAY 13 j) ~ ; ; fv MA~:HLON S. PRIEST 17~ n'A L ~~ I~.~-(¥~-- : : :~E::R~ N. é~RISTINE GREEN, CMC 21 2 2 APPROVED AS TO FORM: ~~~~ : ~"fuONDI K. LINDELL 27 28 29 30 31 32 33 2 3 ordinance, or the validity of its application to other persons or circumstances. Section 42: Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. 4 5 Section 43: Effective Date. 6 7 This Ordinance shall take effect and be in full force thirty (30) days after its passage, according to law. PASSED by the City Council of the City of Federal Way this ;(j) daYOf~t ,19gjp ....., FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE 01/30/96 02/20/96 02/24/96 03/21/96 Ordinance # 96-264, Page 28 1 2 3 4 5 6 7 8 9 10 I 1 12 13 14 15 16 17 18 19 20 21 22 23 ACCEPTANCE: The undersigned hereby accepts all the rights, privileges and obligations of the above granted Franchise and acknowledges that such rights and privileges are subject to and limited by all of the terms, conditions and obligations contained therein. DATED this - day of Ordinance # 96-264, Page 29 ,1996. TCI OF AUBURN, INC. By: Its: 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 .16 17 1 8 19 TO 21 22 23 ACCEPTANCE: The undersigned hereby accepts all the rights, privileges and obligations of the above granted Franchise and acknowledges that such rights and privileges are subject to and limited by all of the terms, conditions and obligations contained therein, subject to awlic:able federal, sr..ate and local law. DATED this 5' day of ~c-J../ ,1996. TCI OF AUBURN, INC. By: ~~.~1 President Its: STATE OF WASHINGTON ) )SS ) COUNTY OF KING On 1(-5- (fG before me, a Notary Public in and for said State, personally appeared David M. Reynolds, known to me to be the President of the corporation that executed the within Instrument, known to me to be the person who executed the within Instrument on behalf of the corporation therein named as OPERATOR. and acknowledged to me that such corporation executed the within Instrument pursuant to its by-laws or a resolution of its board of directors. WITNESS my hand and official seal. n L. Turpen, Notary P lic I nd for the State of Washington Residing at: Bellevue, WA My Commission Expires: May 20, 1996 Ordinance # 96-264, Page 29 " Federal Way Franchise Ordinance-Viacom Ouantitv 1 1 1 1 Message Channel Equipment List Description of Item Panasonic AG-7150-S-VHS Player Panasonic AG-735Q-S-VHS Player/Recorder Panasonic AG-513A-VHS TVNCR Texscan MSI 4000-Character Generator Appendix A " federal Way Franchise Ordinance-Viacom Quantity 3 3 3 3 1 1 1 1 1 2 1 1 1 1 1 2 8 2 2 4 2 2 Production Equipment List Appendix B Description of Item Sony PAC2/DXC-930-Complete Camera Package with Camera, CMA2 Power Supply and RMA930 Controller. No plate needed for tripod, and VCL-712BXEA Lense Sony CCDC-Power Cables Five Meter Pelco PT-550P-Pan and Tilt Pelco MPTV151 OPZ-Controller Joy Stick Rack, Mount Panasonic WJMX-50-Four Channel Switcher Panasonic WJKB-50-Character Generator Panasonic AG-7750-S-VHS Record Deck Panasonic AG-7650-S-VHS Source Deck Panasonic AG-A770-Editor Controller JVC TM-9U-9" Color Monitor Panasonic CT-1383VY-13" Color Monitor Mackie ME-1202-Audio Mixer Tascam 112-Audio Cassette Recorder Panasonic WV-5203B-3x B&W Monitor Bridge Sony CKV27-EXR-27" Color Monitor Panasonic AG-460U-S-VHS 2ccd Camcorder Panasonic AG-BP212-Battery for AC-460 Bogan 3140- Tripod with Fluid Head Lowell TO-95-Ambi Light Kit Sony ECM-44BC-Lavalier Microphoness Shure SM-58-Cardioed Microphone Electovice 635A-omni Microphone , .;, :Federal Way Franchise Ordinance-Viacom Appendix C ( Access and I-Net Interconnection Point t I EXISTING TCI/VIACOM FRANCHISE BOUNDARIES CITY LIMITS ----------- X-Interconnection Point ACCESS V>:TERCO1\:1\:ECT ROUTE' . . . . . . . . J;'ederal Way Franchise Ordinance-Viacom . ',¡ . ( Appendix D Educational Drop Locations Public Schools Admin. 3140518th South Adelaide Elementary 1635 SW 304th Brigadoon Elementary 3601 SW 336th Decatur High School 2800 SW 320th Federal Way High School 30611 16th South Head Start Program 625 South 314th Iliahee Junior High. 36001 First Avenue South Lake Grove Elementary 303 SW 308th Lakota Junior High 1415 SW 314th Mirror Lake Elementary 625 South 314th Nautilus Elementary 1000 South 289th Olympic View Elementary 2626 SW 327th Panther Lake Elementary 34424 First Avenue South Sacajawea Junior High 1101 Dash Point Road Sherwood Forest Elementary 34600 12th SW Silver Lake Elementary 1310 SW 325th Place Twin Lakes Elementary 4400 SW3?Oth Wildwood Elementary 2405 South 300th Green Gables Elementary 3015 S. 368th Street Enterprise Elementary 35101 Fifth Avenue W. Rainier View Elementary 3015 S. 368th Street. Saghalie Jr. High 3391419th Avenue S. Truman High School 31455 28th Avenue S. :; Federal Way Franchise Ordinance-Vlacom ( Appendix E Municipal Building Drop Locations Federal Way City Hall 33530 First Way South Federal Way Police 34004 Ninth Avenue South Steel Lake Parks & Recreation Steel Lake Maintenance Fac. 31132 28th Avenue South Steel Lake Annex 2645 South 312th Federal Way Water & Sewer Main Office/Admin. 31627 First Avenue South Federal Way Water & Sewer Water Operations Building 31623 First Avenue South Federal Way Water & Sewer Lakota Treatment Plant 3045 SW Dash Point Road library 848 South 320th library 34210 First Way South Federal Way District Court 33506 10th Place South South King County Multiservice Center 1200 South 336th West Way Community Center 33400 21st SW Fire Station 31617 First Avenue South Fire Station 33414 21st Avenue SW Fire Station 1405 SW 312th Visitation Retreat Center 3200 SW Dash Point Rd. I, t-ederal Way Franchise Ordinance-Viacom Appendix F ( Municipal I-Net Locations 1. Federal Way City Hall 33530 First Way South 2. Federal Way Police 34004 Ninth Avenue South 3. Steel Lake Parks & Recreation Steel Lake Maintenance Fac. 31132 28th Avenue South 4. Steel Lake Annex 2645 South 312th . 5. Federal Way Water & Sewer Main Office/Admin. 31627 First Avenue South 6. Federal Way Water & Sewer Water Operations Building 31623 First Avenue South 7. Federal Way Water & Sewer Lakota Treatment Plant 3045 SW Dash I:'oint Road 8. Federal Way District Court 33506 10th Place South 9. South King County Multiservice Center 1200 South 336th 10. West Way Community Center 33400 21st SW "", 11. Fire Station 31617 First Avenue South 12. Fire Station 33414 21st Avenue SW 13. Fire Station 1405 SW 312th 14. Visitation Retreat Center 3200 SW Dash Point Rd. .'/ { Federal Way Franchise Ordinance-Viacom Appendix F Municipal I-Net Map~ (Squares indicate locations of SChO~IS to be included in the I-Net) EXISTING TCI/VIACOM FRANCHISE BOUNDARIES 2..'1 CITY LIMITS ----------- ~~~ I. Tota] Municipal I-Net 17.3 miles , :' (federal Way Franchise Ordinance-Viacom Appendix G Educationa/I-Net Locations 1. Public Schools Admin. 31405 18th South 14. Sacajawea Junior High 1101 Dash Point Road 2. Adelaide Elementary 1635 SW 304th 15. Sherwood Forest Elementary 34600 12th SW 3. Brigadoon Elementary 3601 SW 336th 16. Silver Lake Elementary 1310 SW 325th Place 4. Decatur High School 2800 SW 320th 17. Twin Lakes Elementary 4400 SW 320th " 5. Federal Way High School 3061116thSouth 18. Wildwood Elementary 2405 South 300th 6. Head Start Program 625 South 314th 19. Library 848 South 320th 7. lIIahee Junior High 36001 First Avenue South 20. Library 34210 First Way South 8. Lake Grove Elementary 303 SW 308th 21. Green Gables Elementary 3015 S. 368th Street 9. Lakota Junior High 1415 SW 314th 22. Enterprise Elementary 35101 Fifth Avenue W. 10. Mirror Lake Elementary 625 South 314th 23. Saghalie Jr. High 33914 19th Avenue S. 11. Nautilus Elementary 1000 South 289th 24. Truman High School 31455 28th Avenue S. 12. Olympic View Elementary 2626 SW 327th 13. Panther Lake Elementary 34424 First Avenue South I,) ; Federal Way Franchise Ordinance-Viacom Appendix G Educational I-Net Mall (Circles indicate lòcations of schools' to be included in the I-Net) EXISTING TCI/VIACOM FRANCHISE BOUNDARIES CITY LIMITS ----------- z~ ~~ Total Educational )~N"t 24.1 miles