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Ordinance 2002-31 ORDINANCE NO. 2002 _ AN ORDINANCE ENACTING CABLE COMMUNICATIONS FOR THE UNITED CITY OF YORKVILLE, ILLINOIS WHEREAS, the United City of Yorkville is a legally organized Illinois municipal corporation which has the power to regulate cable television within its boundaries through the means of a Franchise in accordance with 65 ILCS 5/11-42-11,the Communications Act of 1934 as amended by the Cable Communications Policy Act of 1984 (P.L. 98-549) and the Cable Television Consumer Protection and Competition Act of 1992 (P.L. 102-835), and the Telecommunications Act of 1996 (P.L. 104-104) now or hereinafter amended; and WHEREAS,the City has served as a cable television franchisor since July 12, 1979; and WHEREAS, the City wishes to continue to Franchise and regulate cable television systems operating within its corporate boundaries; and WHEREAS, the City wishes to promulgate municipal policies and procedures regarding cable television services and operations; and WHEREAS, the City will establish standards and procedures, which support the immediate and future development of cable television systems within the United City of Yorkville; and WHEREAS, the City wishes to ensure by the adoption of this Ordinance that Franchise Grantees operating cable television systems are understanding of community needs and interests, and that the community is served by a Cable System embodying high quality cable television signal transmission; and WHEREAS, the City in adopting this Ordinance to protect the public welfare and public interest through the establishment of consumer protection provisions as they concern Cable System construction, maintenance, and general operation; and WHEREAS, the City wishes to maintain policies which protect its Infrastructure by requiring Cable System Operators who perform work or construct facilities in City Rights- Of-Way; and WHEREAS,the City wishes to establish cable television as a means of encouraging communications by and between the citizens of Yorkville, their institutions, businesses, organizations, and neighboring communities; and 1 WHEREAS,the City wishes to allow for the payment of fees and other consideration of value to the City for the use of municipal property, Public Streets and Public Ways, easements, and other public lands by the Cable System operator in its construction, operation and maintenance of the Cable System, and to compensate the United City of Yorkville for costs incidental to the award and implementation of any and all cable television Franchises; and WHEREAS, the City wishes to provide for remedies and ordain penalties for violations of this Ordinance and for the cable Franchises granted hereunder; and WHEREAS, this Ordinance will enable the regulation of rates and fees charged by a Cable System Franchise Grantee operating under the provisions of this Ordinance; and WHEREAS, through its cable television franchising powers, the City is committed to protecting its corporate interests, as well as the interests of citizens and Subscribers; and WHEREAS, in recognition of the changing technology, services, operations, legal environment, financial aspects, and community needs and interests related to cable television it is necessary for the City to revise its Cable Television Franchise Ordinance; and WHEREAS, to provide for the payment of Franchise Fees to the City for the use of the City streets and Public Ways in the construction and operation of a cable communications system, and to compensate the City, to the extent permitted by law, for costs both directly related and incidental to the awarding of the cable television Franchise. NOW, THEREFORE BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS: SECTION ONE. That the Preamble to this Ordinance is adopted by reference as if fully set forth herein. SECTION TWO: Chapter_ , Article of the City Code of Ordinances ("Code") be and hereby is enacted with the text appearing in Section 3 of this Ordinance below. SECTION THREE: Chapter , Article of the Code is enacted as follows: 2 CHAPTER TELECOMMUNICATIONS AND UTILITIES, PERMITTING, FRANCHISING, LICENSING AND REGULATION ARTICLE CABLE COMMUNICATIONS SECTION: 1: Title, Purposes, and Legislative Authority 2: Definitions 3: Grant of Authority 4: Requirements of Notice 5: Franchise Amendments 6: Technological, Service and Performance Review 7: Franchise Renewal 8: Transfers, Delegations and Assignments of Ownership 9: Revocation of Franchise 10: Continuity of Operations 11: Franchise Fees 12: Maintenance of Books and Records 13: Technical Requirements 14. System Construction 15: Indemnification and Insurance 16: Line Extension 17: Rates and Fees 18: Cable Programming 19: Customer Service Obligations 3 20: Consumer Notification 21: Rights Reserved to City 22: Service to Public Facilities 23: Prohibited Acts 24: Penalties 25: Notice to Comply 26: Police Powers 27: Non-discrimination 28: Equal Employment Opportunity 29: Sexual Harassment Policy 30: Compliance With Occupational Safety and Health Administration Regulations 31: Compliance With Laws 32: Grantee May Promulgate Rules 33: Waiver 34: No Recourse Against City 35: Time Is of The Essence 36: Force Majeure 37: Delegation of Authority 38: Severability 39: No Waiver of Rights Bestowed by Virtue of Law 40: Governing Law and Venue 41: Effective Date 4 SECTION 1: TITLE, PURPOSES, AND LEGISLATIVE AUTHORITY: (A) Title: This Ordinance shall be known as the "United City of Yorkville Cable Communications Ordinance". (B) Purposes: The purposes of this Ordinance are: 1. To enable the United City of Yorkville to franchise and regulate cable television systems operating within its corporate boundaries. 2. To enable the formation of municipal policies and procedures regarding cable television services and operations. 3. To establish standards and procedures which support the immediate and future development of cable television systems within Yorkville. 4. To ensure that Franchise Grantees operating cable television systems are understanding of community needs and interests, and that the community is served by a Cable System embodying a high quality of cable television signal transmission. 5. To protect the public welfare and public interest through the establishment of consumer protection provisions as they concern Cable System construction, maintenance, and general operation. 6. To maintain policies which protect its infrastructure by requiring Cable System Operators who perform work or construct facilities in City Public Streets and Public Ways. 7. To establish cable television as a means of encouraging communications by and between the citizens of Yorkville, their institutions, businesses, organizations, and neighboring communities. 8. To allow for the payment of fees and other consideration of value to the City for the use of municipal property, Public Streets and Public Ways, easements, and other public lands by the Cable System operator in its construction, operation and maintenance of the Cable System, and to compensate the United City of Yorkville for costs incidental to the award and implementation of any and all cable television Franchises. 9. To provide for remedies and ordain penalties for violations of this Ordinance and for the cable television Franchises granted hereunder. 10. To enable the regulation of rates and fees charged by a Cable System Franchise Grantee operating under the provisions of this Ordinance. 5 (C) Legislative Authority: This Ordinance shall be governed by the Communications Act of 1934 as amended, the Cable Communication Policy Act of 1984, the Cable Television Consumer Protection and Competition Act of 1992, and the Telecommunications Act of 1996, as now or hereinafter amended. This Ordinance shall also be governed by provisions of the Illinois Municipal Code, Illinois Compiled Statutes Chapter 65, Section 5/11-42-11 et seq. as now or hereinafter may be amended. SECTION 2: DEFINITIONS: For the purposes of this Article, the following phrases, terms, words, and their derivations shall have the meaning as stated herein. When not inconsistent with the context, words in the present tense shall include the future, words indicating a plural number shall include the singular number and words in the singular number include the plural number. The words "shall" and "will" are mandatory, and not directory. The word "may" is permissive. Words not defined shall be given their common and ordinary meaning. Unless a section provides otherwise, references to statutory enactments shall include any and all amendments thereto and any successor provisions. For the purpose of a Franchise Agreement granted subject to this Ordinance, the terms in the Franchise Agreement shall prevail where there is a conflict between the Ordinance and the Franchise Agreement. Where the Franchise Agreement is silent, the terms of this Ordinance and the Cable Act shall control. ACT (also CABLE ACT): Shall mean the Communications Act of 1934, the Cable Communications Policy Act of 1984, as amended by the Cable Television Consumer Protection and Competition Act of 1992 (47 USC §521 et. seq.) and the Telecommunications Act of 1996 as now or hereinafter amended. BASIC CABLE SERVICE: Shall mean all Subscriber services provided by the Grantee in one (1) or more service tiers, which includes the delivery of local broadcast stations, and public, educational, and governmental (PEG) access Channels. The Basic Cable Service does not include optional program and satellite service tiers, a la carte services, to the extent that such services are not Basic Cable Service under FCC rules, per-Channel, per- program, or auxiliary services for which a separate charge is made. However, a Grantee may include other satellite signals on the Basic Service tier. CABLE COMMUNI- Shall mean the United City of Yorkville Cable Communications CATIONS ORDINANCE: Ordinance (also ORDINANCE). 6 CABLE OPERATOR: Any Person or Persons, including but not limited to, corporations, partnerships, and joint ventures, who provide Cable Services through means of a Cable System, or multichannel video providers which may include, but is not limited to, open video system providers or video providers which provide a video signal to their Subscribers by means of leased telephone or other telecommunications lines which are located in a public right of way, or any Person or Persons who manage, control, coordinate, or direct the operations of a Cable System. Cable Operator also includes Multichannel Video Provider. CABLE SERVICE: The one-way transmission to Subscribers of (1) video programming or(ii)other programming service,and Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. CABLE SYSTEM: The term "Cable System" means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Service which includes video programming and which is provided to multiple Subscribers within a community, but such term does not include (A) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (B) a facility that serves Subscribers without using any public Right-of-Way; (C) a facility of a common carrier which is subject, in whole or in part, to the provisions of Title II of this Act, except that such facility shall be considered a Cable System(other than for purposes of Section 621 (c)) to the extent such facility is used in the transmission of video programming directly to Subscribers, unless the extent of such use is solely to provide interactive on-demand services; (D) an open video system that complies with Section 653 of the Telecommunications Act of 1996 (P.L. 104-104); or (E) any facilities of any electric utility used solely for operating its electric utility systems. CITY: Shall mean the United City of Yorkville, Illinois, and all the territory within its present and future corporate boundaries. CITY COUNCIL: Shall mean the Mayor and City Council of the United City of Yorkville, Illinois. 7 CLASS IV CHANNEL Means a signaling path provided by a cable communications OR CHANNEL: system to transmit signals of any type from a Subscriber terminal to another point in the Cable System. CONSORTIUM: Shall mean the Southwest Fox Valley Cable Television and Telecommunications Consortium. CONVERTER: An electronic device which converts signal carriers from one form to another. CORPORATE Shall mean the Mayor and City Council of the United City of AUTHORITIES: Yorkville, Illinois. DOWNSTREAM A Channel which is transmitted in a direction from the Headend CHANNEL: to the Subscriber's television set. DWELLING UNIT: Shall mean any single-family or multiple-family residential place of occupancy. EDUCATIONAL Shall mean a non-commercial Educational Access Channel or ACCESS CHANNEL: Channels set aside and so designated for the use of Schools and related educational institutions. FCC: Shall mean the Federal Communications Commission or successor agency legally created or appointed with the authority to regulate and license in connection with the subject matter of this Ordinance. FRANCHISE: Shall mean the nonexclusive right granted through the authority of a Franchise Agreement between the City and any Grantee hereunder which allows the Grantee to own, operate, construct, reconstruct, upgrade, dismantle, test, use, and maintain a Cable System within the corporate boundaries of the City, or within specified areas of the City and is not intended to include any license or permit required for the privilege of transacting and carrying on a business within the City as may be required by other laws or ordinances of the City. FRANCHISE Shall mean that certain written agreement entered into between AGREEMENT: a Grantee and the City/Franchising Authority wherein the Franchise and the terms thereof are conferred upon the Grantee. 8 FRANCHISE AREA: Franchise Area shall be the corporate limits of the United City of Yorkville including all territory thereafter annexed to the City. FRANCHISE FEE: Shall include any assessment imposed herein by the City on a Grantee solely because of its status as a Grantee. The term "Franchise Fee" does not include any tax, fee or assessment of general applicability (including any such tax, fee, or assessment imposed upon both utilities and Cable Operators or their services), but not including a tax, fee or assessment which is unduly discriminatory against the Grantee or cable Subscribers; capital costs which are required by the Franchise to be incurred by Grantee for the establishment and operation of Public, Educational, or Governmental Access Facilities; requirements or charges incidental to the awarding or enforcing of the Franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, penalties, liquidated damages; or any fee imposed under Title 17, U.S. Code. FRANCHISING Shall mean the Corporate Authorities of the United City of Yorkville. AUTHORITY: GOVERNMENTAL Shall mean a non-commercial Channel or Channels set aside ACCESS CHANNEL: and so designated for the use of units of local government. GRANTEE: Shall mean any Person or Persons, including corporations, limited liability companies, partnerships, associations, joint ventures, or organizations of any type granted a Franchise hereunder,and its agents,employees, subsidiaries, assignees, transferees or lawful successors. GROSS REVENUES: Gross Revenues means and includes all revenue received directly or indirectly by a Grantee derived from and in connection with the operation of the Grantee's Cable System to provide Cable Service within the City, including but not limited to revenues, fees, receipts or charges from orfor: Basic tier Cable Service; any tier of video programming service other than Basic Service; any optional, premium, per-channel or per program service;any Installation,disconnection, re-connection, change-in-service or other customer service; late or administrative fees; rentals of Converters, remotes or other customer premises equipment; provision of data services such as Internet services carried over the Cable System which are Cable Services as defined by Title VI of the Act; 9 commercial leased channels or channel access; advertising revenues (including infomercials); including a per Subscriber share of revenues for Grantee's Subscribers within the City which is received for advertising carried on one or more Cable Systems in addition to the Grantee's Cable System within the City; Revenues from home shopping channels; the sales of programming guides,and such other revenue sources from the provision of Cable Service as may now exist or hereafter develop, provided that such revenues, fees, receipts or charges may lawfully be included in the gross revenue base on which the City may calculate and collect Franchise fees. Gross Revenues shall not include any amounts refunded to Subscribers, any unpaid Subscriber or advertiser accounts and any sales tax, telecommunications tax, utility message tax or other taxes imposed directly upon any Subscriber or user by the City, the State or other governmental unit and collected by the Grantee on behalf of and for remittance to the City, the State, Kendall County, or other governmental unit. As used herein, Annual Gross Revenues shall mean Gross Revenues attributable to a twelve (12) month accounting period, or portion thereof. This definition of Gross Revenues shall be the basis for computing the fee imposed pursuant to Section 11 hereof. HEADEND. The control center of a cable television system, where incoming signals are amplified, converted, processed, and combined into a common cable along with any origination cablecasting, for transmission to Subscribers. Headend usually includes antennas, preamplifiers,frequency converters, demodulators, processors, and other related equipment. INSTALLATION: Shall mean the connection from system feeder cable to the Subscriber's Converter or terminal and the provision of service. INTERACTIVE A two-way Cable System that has the capability to provide SYSTEM: upstream and downstream communications and Subscriber interaction. LEASED ACCESS A cable television Channel or Channels or parts thereof, CHANNEL: designated for cable casting which is provided by means of a lease arrangement for cablecast airtime between the Cable Operator and the Lessee. Shall include without limitations all use pursuant to Section 612 of the Act (47 U.S.C. §532). 10 LOCAL ORIGINATION A Channel providing programs that are produced or acquired CHANNEL: by the Cable Operator which is under the control of the Cable Operator. MULTICHANNEL Multi Channel Video Provider shall mean any system, including VIDEO PROVIDER: a Satellite Master Antenna Television System (SMATV) that is not a traditional Cable System distributing video programming of its own or from third parties to Subscribers which uses all or part of the City Public Streets or Public Ways, including Rights- of-Way, in orderto distribute such video programming orwhich distributes such programming to Subscribers over the lines of a common carrier which are located in all or part of the City Public Streets or Public Ways. ORDINANCE: Shall mean the United City of Yorkville Cable Communications Ordinance, as may be amended from time to time (Also CABLE COMMUNICATIONS ORDINANCE). PERSONS: Shall mean any people, firms, corporations, companies, partnerships, associations, joint ventures, trusts, or organization of any kind and the lawful trustee, successor, transferee, or assignee, or personal representative thereof. MPUBLIC ACCESS A cable television Channel specifically designated as a CHANNEL: Channel available to the public for the production of non- commercial television programming as subject to applicable law. PUBLIC, Those facilities utilized for the production and playback of EDUCATIONAL Public, Educational, and Governmental Access programming. AND GOVERNMENTAL ACCESS FACILITIES: PUBLIC STREET: Shall mean the surface, the air space above the surface, and the area below the surface of any Public Street, road, highway, lane, path, alley, sidewalk, boulevard, drive, or bridge, now or hereafter held by the City. No reference herein, or in any Franchise, to the Public Street shall be deemed to be a representation or guarantee by the City that its title to any property is sufficient to permit its use for such purpose, and a Grantee shall, by the use of such terms, be deemed to gain only such rights to use property in the City as the City may have the undisputed right and power to give. 11 PUBLIC WAY: Shall mean the surface and the space above and below the surface of any public parkway, driveway, sidewalk, conduit, tunnel, bridge, park, square, waterway, utility easement, or other public Right-of-Way now or hereafter held by the City. No reference herein, or in any Franchise Agreement to the Public Street shall be deemed to be a representation or guarantee by the City that its title to any property is sufficient to permit its use for such purpose, and a Grantee shall, by the use of such terms, be deemed to gain only such rights to use property in the City as the City may have the undisputed right and power to give. RIGHT-OF-WAY: Any dedicated easement or commonly used easement for utility purposes, including utility easements in which the City has the right and authority to authorize, regulate or permit the location of facilities other than those of the City. Right-of-Way shall not include any real or personal City property that is not specifically described in the definitions of Public Street and Public Way, and the previous two sentences and shall not include City buildings, fixtures, and other structures or improvements, regardless of whether they are situated in the Right-of-Way easement of a Public Street or a Public Way. SCHOOLS: Shall mean all public, and private, elementary and secondary Schools, junior colleges, colleges, and universities which have been granted a certificate of recognition by the Illinois State Board of Education. SERVICE Shall mean the loss of picture or sound on one or more cable INTERRUPTION: Channels. SERVICE CALLS: Shall mean Grantee's on site visits to a Subscriber's residence regarding Cable Service. SUBSCRIBER: Shall mean any person who legally receives one or more of the services provided by a Grantee's Cable System, and does not further distribute such services. SUBSCRIBER DROP: A cable (currently coaxial) which connects the tap of a feeder cable to ground block at the Subscriber's premises. 12 TRANSFER: Unless otherwise specifically provided in a Franchise Agreement, prior approval of the City shall be required where the ownership or control of twenty percent(20%) or more of the right of control of a Grantee is acquired during the term of the Franchise in any transaction or series of transactions by a Person or group of Persons acting in concert, none of whom owned or controlled twenty percent (20%) or more of such right of control, singularly or collectively on the effective date of the Franchise. UPSTREAM A Channel which is transmitted in a direction from the CHANNEL: Subscriber's terminal to the Headend or hub. SECTION 3: GRANT OF AUTHORITY: (A) Franchise Required: No Person, firm, company, corporation, joint venture, partnership, trust, organization or association of any kind including Cable Operators and Multichannel Video Providers as defined herein shall construct, install, maintain, or operate within the United City of Yorkville or within any other Public Street or Public Way of the City unless a Franchise has first been granted by the City pursuant to the provisions of the Illinois Municipal Code (65 ILCS 5/11-42-11 etseq.) and this Ordinance, and unless such Franchise is in full force and effect. Such Franchise shall not take the place of any other license or permit which may be legally required of the Grantee in order to conduct such a business. (B) Franchise Term: The term of any new Franchise, and all rights, privileges, obligations, and restrictions pertaining thereto shall be as established in the Franchise Agreement between the Grantee and the City, unless terminated sooner as hereinafter provided. (C) Non-exclusivity of Franchise: Any Franchise granted by the City under the terms and conditions of this Ordinance shall be non-exclusive. Consistent with the requirements of 65 ILCS 5/11-42-11(e), the City specifically reserves the right to grant, at any time, such additional Franchises for a cable television system to use and occupy the Public Streets and Public Ways of the City for cable television as the City deems appropriate. (D) Franchise Area: The City may grant a Franchise for the area within the corporate boundaries of the City. 13 (E) Obligation to Provide Services: Upon issuance of a non-exclusive, revocable Franchise by the City for construction, installation, maintenance, and operation of a Cable System within the designated Franchise Area, Grantee shall be obligated to provide the services of a Cable System as required herein, and by the terms and conditions of the Franchise Agreement. (F) Initial Franchise Applications: The Franchising Authority shall require the submissions of applications for a Franchise under this Ordinance. Initial applications for a Franchise shall include at a minimum: 1. A clear and precise description of the identity of the applicant, including, but not limited to, the name of the applicant, the address of the applicant, a description of the type of business entity which characterizes the applicant, a statement of those Persons who hold ownership of more than five (5) percent of the stock of the business entity of the applicant, or more than five (5) percent of partnership holdings if the entity is a partnership, a description of the major activities of the business entity of the applicant, and evidence of the compliance of the business entity of the applicant with all applicable federal, state, and local laws applicable thereto. 2. Plans and specifications relating to all aspects of the applicant's proposed Cable System, as are applicable to the building and zoning laws of the City. 3. A map or maps of a scale of not less than one (1) inch equaling one thousand (1,000) feet showing the precise geographic area for which applicant seeks a Franchise (Franchise Area); 4. Projected financial pro forma for system revenue, expenditures, debt servicing, and operation for a period of no less than ten years, and evidence of financial responsibility in the form specified by this Ordinance. 5. Financial statements, annual corporate reports and balance sheets, profit and loss statements for no less than the previous two (2) years. 6. Written documentation of financial support from a financial institution for issuance of any loans, bonds, notes, or other related instruments to the Applicant for the purpose of defraying the costs of Cable System construction or operation. 14 7. A non-refundable application fee shall be paid to the City in an amount to be determined by the Corporate Authorities by Resolution and based upon actual costs incurred by the City to cover those costs of initial application review as to form only, and which fee shall be used by the Franchising Authority solely to offset direct expenses incurred in the evaluation and awarding of Franchise sought by said application issued pursuant to this Ordinance. 8. Detailed plans and specifications for the Cable System which are proposed by the applicant showing the routing of trunk and feeder cables reflected by the maps provided pursuant to Section 3(F)(3), and a schedule for Cable System construction. 9. A statement of applicant's technical service and repair capabilities within the City, and customer service operations for the community. 10. A listing of all Franchises wholly or partially owned by the applicant or applicant's business entity within the State of Illinois, and date of expiration for each such Franchise. 11. A statement by the applicant indicating if a Franchise held by the applicant or applicant's business entity has been revoked or denied renewal. Such statement shall also include representations that the owners, partners, Noperating officers, principals, or principal stockholders owning more than five (5) percent of the applicant's business entity have not been convicted of a crime, or have been placed under investigation or indictment for alleged illegal or improper activities by any state investigative agency, or federal investigative or regulatory agency, including but not limited to the U.S. Department of Justice, Federal Communications Commission, Securities and Exchange Commission, or the Federal Trade Commission. 12. Any information or facts requested by the Franchising Authority which are not included in the above subsections that are pertinent and appropriate to the evaluation and awarding of a cable television Franchise. (G) Compliance With Laws: A Grantee shall at all times comply with all applicable laws and regulations of federal, state and local governments, or any administrative agencies thereof. (H) Filing of Franchise Agreements: A fully executed copy of all Franchise Agreements shall be maintained in the Office of the City Clerk. 15 SECTION 4: REQUIREMENTS OF NOTICE: (A) Notice to Grantee of Public Meetings or Hearings: The City shall not take any final action with regard to the evaluation, modification, renewal, revocation, or termination of the Grantee's Franchise unless the City has: 1. Called a meeting for the purpose of taking such action as specified above; and 2. Complied with the Public Notice provisions of the Open Meetings Act(5 ILCS 120/1 et. seq.); and 3. Advised the Grantee in writing by either certified United States Mail or delivery by hand, at least fourteen (14)days prior to such meeting as to its time, place, and purpose; and 4. The Grantee and any interested Person are given an opportunity to be heard at such meeting. (B) Written Notice to Grantee: Where the Franchising Authority provides written notice to the Grantee regarding any matter concerning this Ordinance, any of the other ordinances of the City, or the Franchise Agreement, the Franchising Authority shall provide all such notices in writing with delivery by either of the following: Certified United States Mail, return receipt requested; by overnight delivery service for which written confirmation of delivery is received; or if the parties agree, by electronic facsimile transfer("fax"). Notice shall be deemed to have been given to the Grantee upon the date of transmittal, however, this shall not preclude the City from allowing the Grantee to act upon such notice, where action is applicable, within a specified time period starting from the date of receipt by the party to which the notice was sent. SECTION 5: FRANCHISE AMENDMENTS: The City may entertain modifications consistent with the terms and conditions set forth by Section 625 of the Cable Communications Policy Act of 1984, as now or hereafter amended (47 CFR §545) or any successor provision. Modifications shall have the mutual consent of the parties consistent with applicable law. 16 SECTION 6: TECHNOLOGICAL, SERVICE AND PERFORMANCE REVIEW: At the option of the City, within six to twelve months after the completion of construction or rebuild of the system and every three years thereafter throughout the term of the Franchise, the City, may review the performance and quality of service of the Cable System and may employ the Consortium or any other designated agent as a facilitator and advisor in that process. (A) Topics for Discussion: Topics for discussion and review may include, but shall not be limited to, services provided, application of new technologies, system performance, programming, developments in the law, and technical and economic feasibility of system expansion or upgrading. The City may select additional topics for discussion. (B) Technical Performance Tests:As an element of the review, the City, may require the Grantee to test, analyze, and report on the performance of the Cable System. The Grantee shall fully cooperate with the Consortium in performing such testing and shall prepare results, and a report, if requested, within thirty (30) days after notice. Such report shall include the following information: 1. The rationale that precipitated the special tests; 2. The system component(s) tested; 3. Theequipment used and procedures employed in testing; 4. The method, if any, in which any identified complaints or problems were resolved; 5. Any other information pertinent to the tests and analysis which may be required. (C ) Independent Engineer: The City may require that tests be observed by an independent engineer or equivalent of the City's choice at the City's expense. The engineer shall be given records of special tests and may forward to the City and the Consortium or other designated agent as requested by the City such records with a report interpreting the results of such tests. (D) Correction of Inadequacies: If inadequacies are found within the City, the City will generate a report or cause a report to be generated identifying those inadequacies, and the City may direct the Grantee to correct the inadequacies within a reasonable period of time. 17 (E ) Failure to Correct Inadequacies: Failure of a Grantee, after due notice, to correct any inadequacies found during the review may be a violation of a specific provision of the Franchise or this Ordinance. The City may, at its sole discretion, exercise any remedy within the scope of this Ordinance considered appropriate. SECTION 7: FRANCHISE RENEWAL: (A) The Franchising Authority and the Grantee shall agree to follow the terms, conditions and proceedings established by Section 626 of the Cable Act (47 U.S.C. §546) or its successor. (B) In the event that Section 626 of the Cable Act (47 U.S.C. §546) is repealed, and no successor is enacted, then the Franchising Authority and the Grantee shall followthe terms and conditions of 47 U.S.C. §546 as if it were still in effect. SECTION 8: TRANSFERS, DELEGATIONS AND ASSIGNMENTS OF OWNERSHIP: (A) Assignment or Transfer: The Grantee's Franchise shall not be transferred or assigned, in whole or in part, without the prior written consent of the City. As used in this Section, the terms "assigned" and "transferred"shall mean any transaction or series of transactions defined as a "Transfer" in this Ordinance unless otherwise set forth in a Franchise Agreement. (B) Notice of Transfers: Notwithstanding the foregoing a Grantee may Transfer ownership or control of the Franchise or the System, after notice to the City, to an entity controlling, controlled by, or under common control with Grantee, where such Transfer does not result in a change in the management, operation or ultimate controlling entity of the Franchise or the System without any release of the liability of the Grantee: (C) Granting of a Security Interest: No consent from the City is required prior to the granting of a security interest in any of the Grantee's assets by pledge, mortgage or other hypothecation to secure an indebtedness. (D) Notification of Foreclosure: A Grantee shall notify the City in writing of any foreclosure or any other judicial sale of the Franchise or of a substantial part of the assets of the Grantee or of the Cable System. Such notification shall be considered by the City as notice of a Franchise Transfer and the provisions of this Chapter governing the application for City consent to the Transfer shall apply. (E) Written Application: A Grantee and any proposed assignee or Transferee of the Franchise shall submit a written application to the City containing or accompanied by such information as is required in accordance with applicable law and FCC regulations. Any transferee shall agree in writing to abide by all terms and conditions of a Franchise Agreement. 18 (F) City Inquiries: For the purpose of determining whether it shall consent to such Franchise Transfer, the City may inquire into the legal, financial and technical qualifications of the prospective transferee or controlling party to operate and maintain the system,to comply with all Franchise obligations for the remainder of the Franchise term, and to promptly cure any present or ongoing Franchise violations or defaults. The Grantee and the prospective transferee or controlling party (the "applicants") shall provide reasonable information requested by the City in connection with such inquiry, and which addresses the effect of the proposed transfer or assignment upon the public. (G) City Consent: As prescribed by the Cable Act (47 U.S.C. §537), the City shall be deemed to have consented to a proposed Transfer if the City fails to render a final decision on the request for approval of the proposed Transfer within one hundred and twenty (120) days following the City's receipt of the written application together with all necessary information as to the effect of the proposed transfer or assignment upon the public, unless the City and the applicant agree in writing to extend the time for the City to review the application and to grant or deny its consent. The consent of the City shall not be unreasonably withheld. (H) No Waiver: The consent or approval of the City to any transfer of the Grantee, Franchise, or other control thereof, shall not constitute a waiver or release of the rights of the City in and to the Public Streets and Public Ways, and any transfer shall, by its terms, be expressly subordinate to the terms and conditions of the Franchise. SECTION 9: REVOCATION OF FRANCHISE: (A) Revocation. The Franchise granted to the Grantee pursuant to this Agreement is subject to revocation in the event of any substantial breach of this Franchise Agreement or default in performance of the Grantee's performance of the Franchise. The following events, acts or omissions on the part of the Grantee are a substantial breach and may be considered cause for revocation of the Franchise and termination of this Franchise Agreement: 1. Failure to complete initial construction or upgrade of Cable System as specified in a Franchise Agreement. 2. Repeated failure, after notice and an opportunity to cure, to comply with the material provisions of this Ordinance. 3. Repeated failure, after notice and an opportunity to cure, to comply with the material terms of a Franchise Agreement. 4. Repeated failure to cure material violations of the Ordinance or a Franchise Agreement within a reasonable time after notice from the City. 19 5. Material fraud or misrepresentation in obtaining the Franchise. 6. Repeated failure to pay taxes, Franchise Fees, costs or penalties when and as due the City. 7. Failure to maintain required insurance coverage. 8. Failure to restore system wide service after seventy-two (72) consecutive hours of interrupted service, provided the Grantee's failure to restore system wide service is not caused by circumstances or events beyond the Grantee's reasonable control. 9. Insolvency or bankruptcy of the Grantee. 10. Transfer of the Franchise without City approval pursuant to Section 8. 11. The Grantee abandons the Franchise. The Grantee shall be deemed to have abandoned its Franchise if it willfully refuses or is unable to operate the Cable System as granted by a Franchise Agreement pursuant to this Ordinance, when there is no event beyond the Grantee's control that prevents the operation of the Cable System, and where operation would not endanger the health or safety of the public or property. (B) Notice of Substantial Breach. Written notice shall be given to the Grantee setting forth: 1. the nature of the substantial breach or default by the Grantee; 2. a written demand that the Grantee correct the violation; 3. notice that any failure to correct the substantial breach or default within thirty (30) days or as the parties may agree may be cause for revocation of the Franchise. (C) Answer to Notice of Breach. Within thirty (30) days the Grantee shall respond in writing to the City, together with documentation in support of its response: 1. That it contests the City's notice of substantial breach and requests an opportunity to be heard as provided herein. 2. That corrective action has been implemented by the Grantee and the substantial breach or default has been cured. 20 3. That corrective action has been implemented by the Grantee and is being actively and diligently pursued in accordance with a written corrective action plan to be submitted to the City. (D) Hearing: If requested by the Grantee, or if the City is not satisfied that sufficient corrective action is being actively and expeditiously pursued by the Grantee to remedy the substantial breach or default, the City shall schedule a public hearing to hear and determine the issues and to consider whether sufficient cause exists to revoke the Franchise. The City shall give the Grantee not less than fourteen (14) days written notice specifying the City's intent to consider the revocation of the Grantee's Franchise, and the date, time and place of the public hearing to be held before the City Council, or a hearing officer appointed by the City Council. If a hearing officer has been designated, the officer shall hear the relevant evidence and shall render a record of the administrative hearing and recommended findings and decision to the City Council. (E) Determination: If the recommended findings and decision in subsection D above are provided to the City Council by a hearing officer, the parties shall be entitled to an opportunity to present their respective positions to the City Council. The City Council shall hear the relevant evidence, provide the Grantee the opportunity to be heard on said relevant evidence and shall determine whether or not a substantial breach or default by the Grantee has occurred, whether it has been cured or a satisfactory corrective action plan has been submitted and is being actively and diligently pursued and whether cause exists to impose a lesser sanction. In the event that the City is caused to revoke the Franchise, it shall send notice of revocation and file within a reasonable time after said determination. (F) Determination: If the Corporate Authorities determine that cause exists to revoke the Franchise, it may by ordinance declare a Grantee's Franchise to be terminated and revoked, provided that the City may grant a Grantee an additional period of time to remedy the substantial breach or default before such ordinance is fully effective. (G) Judicial Relief: No provision of this Section shall be deemed to bar or otherwise limit the right of the Franchising Authority to seek or obtain judicial relief to enforce the provisions of the Cable Communications Ordinance or this Franchise Agreement. (H) City Acquisition of Cable System: In the event that a Franchise has been revoked by the City and the City acquires ownership of the Cable System, or effects a Transfer of ownership of a Grantee's Cable System to another Person, any such acquisition or Transfer shall be governed under Section 627 of the Cable Act (47 U.S.C. §547) or its successor provision. i 21 (I) Removal of Cable System Plant and Equipment: If, upon revocation of Grantee's Franchise, the City does not elect to purchase the Cable System, and no sale of the Cable System is made to a successor Grantee, then the City shall require that Grantee terminate and dismantle the Cable System, including its wiring, equipment, Headend facilities, if located within the City limits, and related appurtenances except that in the event that the Grantee is providing telecommunications services as defined by the Cable Act the Grantee shall not be required to remove those facilities which provide said services. Upon completion of termination and dismantling of the Cable System, Grantee shall, upon direction by City, restore any property, public or private, to the condition in which it existed prior to erection or construction of the Cable System, including any improvements made to such property subsequent to construction of the system. Restoring of City property, including all Public Streets and Public Ways as defined herein, shall be in accordance with the directions and specifications of the City set forth herein and all applicable laws. Grantee shall restore said Public Streets, Public Ways and properties at its expense. SECTION 10: CONTINUITY OF OPERATIONS: Continued Provision of Service: In the event of revocation of the Franchise, expiration of the Franchise, or Transfer of the Franchise between the existing Grantee and a successor Grantee, the existing Grantee shall continue to provide Cable Service to its Subscribers for a reasonable period of time in the same manner and with the same types of programming, customer service, and repair capabilities under the same terms and conditions as provided by a Franchise Agreement and this Ordinance prior to the change in status of the Franchise. SECTION 11: FRANCHISE FEES: (A) Payment of Franchise Fee: The Grantee, shall pay to the City on a quarterly basis, an amount equal to five percent (5%) per year of Grantee's annual Gross Revenue as permitted by law. Gross Revenue shall be defined as stated in Section 2 hereinabove. Should the law permit an increase in the percentage of Gross Revenues to be collected by the Franchising Authority as Franchise Fees,the parties will meet and confer to discuss the ramifications of such increase on Subscriber bills. Said payment shall be paid by the Grantee by the 60th day following the close of the fiscal quarter for which the payment is being made. Such dates shall be not later than, May 31, August 31, November 30, and February 28/29. In accordance with applicable law, increases in Franchise Fees may be levied by the City by ordinance after ninety (90) days advance written notice is given to Grantee. 22 (B) Payment of Franchise Fee in the Event of Termination or Revocation: In the event Grantee continues operation of all or any part of the Cable System beyond the revocation or the expiration of the Franchise Agreement, Grantee shall pay to the City the compensation set forth hereinabove at the rate in effect at the time of such revocation or expiration, and in the manner set forth in this Franchise Agreement, together with any taxes it would have been required to pay had its operation been duly authorized. (C) Annual Gross Revenue Report: A Grantee shall also file, within one hundred twenty (120) days following the conclusion of a Grantee's fiscal year, an annual report prepared and attested to by the Grantee's Chief Financial Officer or an outside independent auditor for the Cable System, clearly showing the yearly total Gross Revenues. Said annual report is to be prepared at Grantee's expense according to generally accepted accounting principles (GAAP). (D) Review of Franchise Fees: 1. The Franchising Authority shall have the right to review and audit the Franchise Fees, and the right to require recomputation of any amounts determined to be payable under this Agreement, in order to verify the accuracy of such Franchise Fees paid to the City. The City and its independent auditor, shall have the right to inspect, the Grantee's income records, worksheets, journals, ledgers, and other such appropriate relevant financial records as may be necessary and appropriate to verify the accuracy of the Franchise Fee payment or other payments owed to the City for a period as agreed to in a Franchise Agreement. The Grantee may require the City or its duly authorized agent to enter into a confidentiality agreement limiting the release of information disclosed through the inspection, audit, and/or recomputation. 2. The Franchising Authority shall provide Grantee with no less than thirty (30) calendar days notice of the Franchising Authority's intent to conduct an inspection of Grantee's financial records. Grantee shall comply with the request of the Franchising Authority and make available to the Franchising Authority or the Consortium or other designee authorized in writing all such records as are reasonably required at the Grantee's office in the Chicago metropolitan area. 3. Any undisputed additional amount due as a result of such audit or inspection shall be paid within thirty (30) days following written notice to the Grantee by the Franchising Authority which notice shall include a copy of the audit or inspection report. 23 The cost of said audit or inspection shall be borne by the Grantee if it is properly determined that the Grantee's annual payment due to the City for the preceding year is increased by such percentages as agreed to in a Franchise Agreement. (E) Interest Payments: In the event that any Franchise payment or recomputed amount is not made on or before the applicable dates heretofore specified, interest shall be charged from such due date at the annual rate of eighteen (18%) percent. (F) Financial Statements on Termination of Franchise: In the event the Franchise is terminated for any reason the Grantee shall file with the Franchising Authority, within sixty (60) days of the termination of service by the Grantee, a financial statement, certified by a Certified Public Accountant or an independent auditor, clearly showing the unreported Gross Revenues received by Grantee since its last report of Gross Revenues to the City. Grantee shall submit such documentation with the final Franchise Fee payment. Grantee shall not be responsible for payment of any Franchise Fees incurred after the date upon which Grantee ceased providing Cable Services. (G) No Limitation of Liability: Nothing in this Ordinance or a Franchise Agreement shall be construed to limit the liability of Grantee for all applicable federal, state, and local taxes. Payment of the Franchise Fee by Grantee to City shall not be considered in the nature of a tax or assessment, but shall be in addition to any and all taxes and assessments which are of general applicability now or hereinafter required to be paid by any law to the City. SECTION 12: MAINTENANCE OF BOOKS AND RECORDS: (A) Requirement to Maintain Specific Books and Records: Unless otherwise provided for in a Franchise Agreement: 1. All records pertaining to Subscribers, Cable System operations, and finances of the Grantee shall be maintained in a local office, or in a regional office in the Chicago Metropolitan Area to facilitate municipal regulatory oversight.This Section shall not apply to records generated by a third party with respect to Cable System programming or operations. 2. Where Grantee is unable to locate books and records specific to the Franchise Area at a location which is either within the City of Yorkville, or within the Chicago Metropolitan Area, Grantee may maintain such books and records at a remote location which is set forth by Grantee with the provision that in the event that the Franchising Authority, or its designee requests to inspect such records, Grantee shall permit the inspection of such records within fifteen (15) calendar days of the Franchising Authority's request. 24 (B) Records to Be Provided: Unless otherwise provided for in a Franchise Agreement, a Grantee shall provide to the City. Or the Consortium or other designated agent, a monthly Cable Operations and Service Profile in the form and manner agreed to in a Franchise Agreement or in such other form reasonably acceptable to the Grantee, and to the City. The Grantee shall provide such additional information as the City may reasonably request from time to time provided such requests relate to matters within the scope of the City's regulatory authority. The Grantee may reasonably require the execution of a confidentiality agreement by the City in accordance with applicable Illinois law prior to providing any records containing privileged, confidential or proprietary information. Upon request, or as provided for in a Franchise Agreement, Grantee will provide a monthly report for all temporary Subscriber Drops installed, including "snow drops", including location, the date of Installation, and the date of burial. (C) Other Records or Reports to Be Provided to City: Unless otherwise provided for in a Franchise Agreement: 1. Filing of Annual Corporate Report Required: In those cases where a Grantee has been formed as a corporation, the Grantee's Annual Corporate Report shall be filed with the City and shall contain a listing of all Grantee's directors, officers, and shareholders who own directly or indirectly, at least five percent (5%) of the stock in the corporation of which a Grantee is an entity if said listing of directors has changed from the prior year. Where a Grantee or its parent is a publicly-traded stock company, the filing by the Grantee with the Franchising Authority of a copy of the annual report to stockholders shall constitute compliance with the provisions of this Section. Where a Grantee or its parent is a publicly-traded stock company subject to Security and Exchange Commission (SEC) reporting requirements, the availability of its SEC filings on the Internet shall constitute compliance with this Section. 2. The Grantee shall collect and disclose Subscriber information to the City to the extent such information is allowed to be disclosed in compliance with Section 631 of the Cable Communications Policy Act of 1984, (47 U.S.C. §551) and any amendments or any successor provisions thereto. (D) Duration of Maintenance of Records: Unless otherwise provided for in a Franchise Agreement Grantee shall maintain the following records for the amount of time as specified hereunder: 1. FCC Form 325 or its successor, where applicable, shall be maintained for the life of the Franchise. 2. Public files as required by the FCC. 25 3. All other reports required herein and not set forth in this Section shall be maintained for a period of no less than three (3) years. SECTION 13: TECHNICAL REQUIREMENTS: (A) Initial Franchise Information Requirements: A Grantee shall, as part of an initial Franchise, provide the Franchising Authority with a written description of the Cable System within the Franchise Area, including technical characteristics, Channel capacity, Channel carriage, and a preliminary strand map. (B) System Capacities: Any Cable System, including currently existing Cable Systems upon completion of an upgrade, shall provide: (1) a minimum of one hundred (100) video Channels without regard to method of delivery or capacity; (2) stereo sound reproduction capacity, where a stereo signal is provided by the programmer; and (3) platform expansion capability, without regard to technological format, that enables a Grantee to respond to marketplace conditions for enhanced Cable Services. (C) Backup Power:A Grantee's Cable System shall be equipped with power generation equipment which starts automatically in the event of a power failure or other loss of conventional power to provide electric service to the Cable System, including its Headend and associated equipment. Unless otherwise agreed to in a Franchise Agreement, battery backup power shall have operating capacity of at least three (3) hours during a period of electrical service interruption along cable trunk line amplifiers or optical node sites. Other power generation equipment serving the Headend shall have a capacity to operate the Headend for at least eight (8) hours during a period of electric service interruption. (D) Electronic Status Monitoring: A Grantee's Cable System shall have the capacity to identify system faults through electronic status monitoring equipment installed at locations consistent with a Grantee's engineering practices. (E) Upstream/Downstream Channel Capacity: A Grantee shall design its Cable System with the capability to provide Upstream Channel and Downstream Channel capacity. (F) Continuous Service: A Grantee shall operate and maintain its Cable System in a manner which will enable continuous twenty-four (24) hour operation of all services required herein. (G) Parental Lockout: Upon request of the Subscriber, a Grantee shall make a "parental control" mechanism or device that permits the Subscriber to "lock out" audible and visual reception of programming of the Subscriber's choice. For purposes of this Ordinance, a Converter box which contains a microprocessing chip that enables blocking or scrambling of cablecast signals shall meet the requirements of this Section. 26 (H) Periodic Testing and Compliance with FCC Standards: 1. A Grantee shall construct and operate the Cable System to comply with the FCC technical standards contained in Part 76, Subpart K of the Commissions rules and regulations, as updated and amended from time to time (47 U.S.C. §76, Subpart K). 2. A Grantee shall perform all tests necessary to determine compliance with the FCC technical standards. Tests shall include, at minimum, proof-of- performance tests required by FCC Rule Section 76.601 (47 U.S.C. §76.601) and such additional or repeat tests involving specified Subscriber terminals as may be required to determine compliance with the FCC technical standards. 3. Written records of test results shall be maintained at a Grantee's local office and made available for inspection by the City or by the Consortium or other designated agent of the City, upon request of the City. 4. The Consortium or other designated agent of the City may monitor and facilitate the enforcement of, the FCC technical standards referenced herein in accordance with the Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996 Report and Order in CS Docket No 96-85, FCC 99-57, released March 29 1999 as directed by the City. (I) Adherence to Electrical and Safety Codes: The construction, installation, activation, reactivation, and operation of any portion of a Grantee's signal origination or signal processing or signal distribution system and equipment, including, but not limited to the towers, antennas, Headend, studio, trunk and distribution system, drops, power supplies, and fixed or portable equipment located on or off Subscriber-occupied property shall comply with all applicable requirements of each of the following publications: 1. National Electrical Code, published by the National Fire Protection Association, (currently ANSI/NFPA 70-1996 and replaced by subsequently adopted editions), 2. National Electrical Safety Code, published by the Institute of Electrical and Electronics Engineers Inc. (Currently ANSI C2-1998 and replaced by subsequently adopted editions). 3. Bellcore Code of Pole Line Construction. Grantee shall at all times comply with all other appropriate Federal, State, and local regulations, and codes and other ordinances of the City. 27 (J) Grounding of System Equipment and Service Connections: All towers, antennas, satellite receiving stations, and otherexposed equipment including Subscriber Drops and power supplies of Grantee used in the provision of Cable Service shall be properly grounded in accordance with the National Electrical Code and the National Electrical Safety Code. (K) Emergency Override: Unless provided for differently in a Franchise Agreement: 1. Grantee shall configure the Cable System to enable carriage of audio emergency override cablecasting over all Channels of the Cable System in accordance with FCC regulations. Said emergency override capability shall be designed to allow the Mayor of Yorkville, or his/her designee to activate the emergency override by touch-tone telephone, including cellular or PCS telephones, upon declaration of a public emergency. 2. Upon requirement by the FCC to participate in the Emergency Alert System, Grantee shall provide the following: a. A Channel alert system which provides Subscribers with appropriate audio and/or visual emergency warnings on all Channels operated by the Grantee at any given time. b. An Emergency Alert System (EAS) or its successor, in accordance with all requirements of the FCC, including, but without limitation, the requirement currently set forth in FCC regulations that cable television systems transmit a visual EAS message on at least one Channel and that cable television systems also provide video interruption and audio EAS message on all Channels with the video further stating which Channel is carrying the visual message. In establishing its EAS system, the Grantee shall in accordance with FCC or other applicable regulations, cooperate with the City on the use and operation by the City of the EAS. C. In the event of emergencies which are not subject to the provisions of the EAS regulations established by the FCC (47 U.S.C. §11.53, §11.55) upon notification of said emergency by the Mayor or his/her designee, the Grantee shall transmit a visual message on at least one Channel and provide video interruption and an audio message on all Channels with the video further stating which Channel is carrying the visual message. 28 d. A Grantee and the City shall jointly develop an emergency notification plan which shall be integrated into the City's disaster or emergency operations plan, and which plan shall be coordinated with the Kendall County Emergency Communications Agency (KENCOM). (L) Interconnection: A Grantee shall cooperate to a reasonable degree with any interconnection corporation, regional interconnection authority (which may include the Consortium), or City, county, state, and federal regulatory agency which is or may be hereafter established for the purpose of regulating, financing, monitoring, advising, investigating, facilitating, or otherwise providing for the interconnection of cable systems beyond the boundaries of the City. (M) Interference: A Grantee shall not allow its cable or other operations to interfere with television reception of Subscribers or Persons not served by the Grantee, nor shall the system interfere with, obstruct or hinder in any manner the operation of the various utilities serving the residents within the confines of the City nor shall other utilities interfere with the Grantee's system. (N) Service Interruptions: Unless otherwise provided for in a Franchise Agreement a Grantee may interrupt service to cable Subscribers when necessary forthe purposes of alteration, maintenance, repair or emergencies. Grantee shall create such interruptions at such time as will reasonably minimize inconvenience to its Subscribers, and unless such interruption is unforeseen and immediately necessary, it shall give at least twenty-four(24) hours notice thereof to the affected Subscribers and the Franchising Authority or other agent designated in writing by the City. Grantee shall notify Subscribers in advance by means of the Government Access Channel or Grantee Origination Channels of any large-scale planned Service Interruptions as defined herein at least twenty-four (24) hours in advance of the planned interruption. A large-scale planned Service Interruption shall mean an interruption of Cable Service under the following conditions: 1) Where a node topology has not been employed, a Service Interruption affecting twenty-five (25) percent or more of the Cable System's Subscriber households; or 2) Where a node topology has been employed and activated, a Service Interruption affecting two (2) or more of the nodes located within the Franchise Area. (0) Antenna Switch: Upon request of the Subscriber, the Grantee, shall install a switching device so as to permit a Subscriber to continue to utilize his own television antenna if he so chooses. The Grantee may assess a reasonable charge for the switching device. 29 (P) Repair Service: Grantee shall establish a repair service capable of identifying, locating and correcting major system malfunctions in an expeditious manner. Said repair service shall be available on a twenty-four (24) hour basis, seven (7) days a week to restore service of the Cable System to Subscribers. The Grantee shall keep and maintain an inventory of maintenance and repair parts for the Cable System. The Grantee shall maintain or otherwise have available a work force of skilled technicians for Cable System repair and maintenance. Upon completion of a service call, Installation, or Installation-related activity, the customer shall receive a notification of the service call. SECTION 14: SYSTEM CONSTRUCTION: (A) Authority for Use of Public Streets and Public Ways: For the purposes of operating and maintaining a Cable System within the Franchise Area, Grantee may erect, install, construct, repair, replace, reconstruct, and retain in, on, over, under, across and along the Public Streets and Public Ways within the Franchise Area, lines, cables, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of the Cable System, provided that all applicable permits are applied for and granted, all fees paid and all other City codes and ordinances otherwise complied with. (B) Permits Required: No construction, upgrade, or relocation (excepting routine maintenance and repair) of the Cable System or its components within the Public Streets or Public Ways of the City shall be initiated without approval by means of permits as required by City ordinance. In issuing such permit, the City may, at its option, impose such conditions, restrictions, or regulations as are needed for protection of public property, private property, buildings, structures, and public utilities, for maintaining the safety of the public, and the unimpeded flow of traffic by pedestrians and vehicles. Upon receipt of such permit, Grantee shall provide the City fourteen (14) days notice prior to the start of construction, however, such notice may be waived by the City Administrator or his/her designee in the event that construction, upgrade, or relocation of the Cable System or its components is necessitated by emergency conditions. The permittee shall promptly complete all construction activities so as to minimize disruption of the Public Streets and Public Ways and private property.All construction work authorized by a permit within Public Streets or Public Ways, including restoration, must be completed within one hundred twenty (120) days of the date of issuance, weather permitting. (C) Right of City to Examine Plans and Inspect Construction: Prior to construction, upgrade, installation, or erection of towers, poles, conduits, or fixtures, Grantee shall submit plans and maps detailing proposed facility construction, upgrade, installation, or erection to the City for its examination. Upon approval by the City Director of Public Works, Grantee may proceed with implementation of its proposed plans and activities. The City shall not unreasonably withhold such approval of Grantee's plans. 30 Notwithstanding such approval, all work and materials are subject to the City's inspection by its designated representative within a reasonable time after completion of the work or segments thereof. The Grantee shall permit the City to conduct inspections of construction or installation being performed in accordance with this Ordinance. If upon inspection any work or materials fail to meet the specifications or any other requirements of this Ordinance or a Franchise Agreement, the City may require said work to be corrected or said material to be replaced at the Grantee's expense. (D) Construction/Reconstruction Schedule: 1. Schedule Included. Franchise applications for an initial Franchise shall include a schedule for construction. In the case of a Franchise which is being considered for renewal, the renewed Franchise Agreement shall include a schedule for upgrade, including a timetable for commencement or enhancement of Cable Services to Subscribers. Said schedule shall be enforceable to the Grantee under the provisions of this Ordinance. 2. Preliminary Drawings. Within three (3) months after acceptance of a new initial Franchise, or an agreement between the Grantee and the Franchising Authority regarding a reconstruction of the Cable System, Grantee shall furnish the Franchising Authority with a copy of preliminary engineering drawings and an operating construction schedule setting forth target dates by area for construction activity. If substantial changes become necessary, Grantee shall modify such drawings and schedule to accurately reflect any substantial changes. 3. Reports. Grantee shall furnish the Franchising Authority progress reports on construction or upgrade of the Cable System at such time and in such manner as reasonably determined by the City Administrator. (E) Undergrounding and Method of Installation. 1. All installations shall be underground in those areas of the City where public utilities providing both telephone and electric service are underground at the time of installation. In areas where either telephone or electric utility facilities are above ground at the time of installation, the Grantee may install its service above ground, provided that at such time as those facilities are required to be placed underground by the City or are placed underground pursuant to the same terms and conditions of those other utility facilities, the Grantee shall likewise place its services underground without additional cost to the City or to the individual Subscriber so served within the City. Where Grantee's existing Cable System facilities are placed underground, any reconstruction of such facilities shall be underground as well. 31 2. Where not otherwise required to be placed underground by a Franchise Agreement, the Grantee's Cable System facilities shall be located underground at the request of the property owner, provided that all reasonable costs over aerial location shall be borne by the property owner making the request. 3. All wires, cables, amplifiers, node sites, and other property shall be constructed and installed in an orderly and workmanlike manner. All cables and wires shall be installed parallel with existing telephone and electric wires wherever possible. Multiple cable configurations shall be arranged in parallel and bundled together with proper lashing or conduit, with due respect for engineering and safety considerations. The Grantee shall identify its Cable System and cable drops by either color code, stamping, engraving, ortagging so as to distinguish its cables from those of other utilities and telecommunications providers serving the Franchise Area.Aerial cable which is placed over Public Streets or Public Ways shall be hung at the heights specified for streets, sidewalks, parkways, and yards as specified by the National Electrical Safety Code, and underground cable shall be buried at depths in accordance with guidelines established by the National Electrical Safety Code as referred to herein. 4. All underground work required by the Franchising Authority in concert with other utilities will be done in a coordinated fashion. Grantee will request"joint meet" conferences, including the City, for each project, bringing all utilities and Grantee's plant from an aerial to an underground status. Grantee shall share both map prints and locating information to help minimize any disturbance to either Grantee and/or another entity's underground distribution network. All work will be done in accordance with the Joint Utility Locating Information for Excavators (J.U.L.I.E) specifications and a record of all locate and dig requests will be maintained by Grantee at its principal offices. All underground construction will be done by directional boring, except where safety or other conditions preclude it or render it unnecessary. (F) As Built Drawings: 1. As Built Drawings Required. Each Grantee shall provide five (5)sets of as built maps of the Cable System to the City within ninety (90) days after the initial construction or upgrade of the Cable System is substantially completed. 2. Provided After Completion. Within sixty (60) days after completion of any construction or work that results in any addition, extension, or removal of the System within the Public Streets or the Public Ways of the City, each Grantee shall furnish the City with three (3) complete sets of as built drawings accurately depicting the location of all cables, wires, and facilities constructed or relocated as part of such work. 32 3. Reproducible Form. The final as built drawing document shall be in a reproducible medium reasonably acceptable to the City. 4. Electronic Format. At such time that the City implements a Geographic Information System (GIS), in addition to the final as built drawing document submitted in a reproducible medium, each Grantee shall provide the exact same information contained on the as built drawing in an electronic format which can be utilized by the GIS. 5. Atlas Information. As built drawings submitted to the City will be used to create atlas information and will be documented into an overall utilities atlas. If a Grantee desires, it may provide a set of as built drawings that shall be public records, and a separate set of detailed maps containing proprietary information that the City would agree to protect from public disclosure. (G) Disposition of Cable Home Wiring. Grantee shall comply with the provisions of 47 U.S.C. §76.802 et seq. of the U.S. Code of Federal Regulations in the disposition of Cable Home Wiring. (H) Construction Bonds: 1. Construction Bond Required. Upon grant of a Franchise upon which initial construction of a Cable System is proposed, or in the event of an upgrade or rebuild of the Cable System, Grantee shall file and maintain with the Consortium, a construction bond in an amount so specified in the Franchise Agreement. Upon certification of the completion of the initial construction of a Cable System or the certification of completion of an upgrade or rebuild of the Cable System by the City and the Consortium, the Construction Bond shall be released to the Grantee. 2. Security Fund. On the effective date of a Franchise, a Grantee shall a. Establish a permanent security fund with the City. The Security fund shall be established in the cash amount specified in the Franchise Agreement or by an irrevocable letter of credit from a bank authorized to do business in Illinois, corporate surety bond or other instrument which complies with the requirements set forth in the Ordinance and approved by the City Attorney, which approval shall not be unreasonably withheld. 33 b. Maintain the Security Fund at the sole expense of the Grantee so long as any part of the System is located within the Public Streets and Public Ways of the City. The Security Fund shall be used to insure the faithful performance of the Grantee of all provisions of this Ordinance, and to ensure compliance with all orders, permits, and directions of any agency, commission, board, department, division, or office of the City. The Security Fund shall also be used to ensure the payment by the Grantee of any claims, liens, and taxes due to the City which arise by reason of the construction, operation, or maintenance of the Cable System. (I) Construction Delays: At such time where Grantee is delayed in completing the construction of the Cable System and such delay is beyond the physical or administrative control of the Grantee, Grantee shall notify the Franchising Authority of said delay no more than five (5) business days from the occurrence of the delay, and shall indicate the cause or causes for the delay. Upon receipt of notification by the Grantee of the delay of service, the Franchising Authority and the Grantee shall agree to establish a date by which the delay shall end and construction or service shall resume. In the event that the delay continues beyond the control of Grantee, and extends beyond the agreed-upon date, the Franchising Authority and the Grantee may agree to establish a new date for resumption of construction or service. Delays in construction or service which extend beyond a final date agreed upon by Grantee and the Franchising Authority shall constitute a violation of the Franchise. (J) Eligibility: As a condition of award of a Franchise to a Grantee if required by law, the Grantee shall certify to the City that it is not barred from contracting with a unit of local government as a result of a violation of either the Illinois law prohibiting bid- rigging or bid-rotating. SECTION 15: INDEMNIFICATION AND INSURANCE: (A) Grantee's Indemnification of City: Except for City negligence, a Grantee shall, at its sole expense, fully indemnify, defend, save and hold harmless the United City of Yorkville, its Corporate Authorities, officers, boards, commissions, employees and agents harmless from any and all third party injuries, claims, counter-claims, demands, suits, judgments, execution liabilities, debt damages, or penalties (hereinafter referred to as "claims") arising out of, resulting from or alleged to arise out of or result from, the approval of this Agreement, the granting of a Franchise, or the construction, erection, installation, operation, maintenance of, or other activity connected with, a Grantee's Cable System, whether or not such acts or omissions are those of a Grantee, and whether or not any such act or omission is authorized, allowed or prohibited by this Agreement or a Grantee's Franchise. 34 These damages shall include but not be limited to penalties arising out of or alleged to arise out of any claim for damages for Grantee's invasion of the right of privacy, defamation of any Person, firm or corporation, or copyright, trademark, trade name, service mark or patent violations or infringements, or of any other right of any Person, firm or corporation, damages arising out of any failure by Grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by a Grantee's Cable System, and failures of Grantee to comply with provisions of any statute, regulation, or ordinance of the United States, State of Illinois, Kendall County, or United City of Yorkville applicable to Grantee in its business. (B) Grantee's Obligation to Pay Expenses: A Grantee shall pay and by its acceptance of a Franchise shall be deemed to have specifically agreed that it will pay all reasonable expenses incurred by the City in defending itself with regard to all claims mentioned in subsection A above that exceed insurance coverage limits set forth herein including reasonable attorney's fees. Nothing herein shall be deemed to prevent the parties indemnified and held harmless herein from participating in defense of litigation as co-counsel through their own City Attorney at their sole expense. Such participation shall not under any circumstances relieve Grantee from its duties of defense against liability of or of paying any judgment entered against such indemnified party. (C) Insurance Provided: During the term of a Franchise Agreement, Grantee will maintain, in full force and effect, insurance being of the kind and with the limits designated below. A Grantee shall furnish to the City insurance certificates evidencing coverage as stated above issued by an insurance company authorized to do business under the laws of the State of Illinois, accepted by the City and carrying a Best rating of B+ XIII or higher. Such policies shall provide that no cancellation or modification of the policies shall occur without at least thirty (30) calendar days prior written notice given to the City. Any notices of the cancellation or material modification of policies shall be given in accordance with this paragraph. 1. Comprehensive General Liability Insurance. Comprehensive general liability insurance for property and bodily injury with a five million dollar ($5,000,000) limit and showing the City as an additional insured. 2. Comprehensive Automobile Liability Insurance. Comprehensive Automobile Liability Insurance including employers non-ownership and hired car coverage, protecting against automobile claims whether on or off the City's premises with limits of not less than one million dollars ($1,000,000) per accident. 3. Worker's Compensation Insurance. Worker's compensation insurance with statutory limits of liability. 35 4. Excess Liability/Umbrella Policy. An Umbrella Insurance policy in an amount not less than five million dollars ($5,000,000). All insurance companies issuing policies required herein, shall provide certificates of insurance certifying to the City that such policies have been issued and are in force and will remain not materially changed, canceled or annulled except upon thirty (30) days' prior written notice to the other party. If the policy is written on a claims made basis, then the Grantee shall purchase such additional insurance as may be necessary to provide specified coverage to the City for a period not less than five (5) years from the termination of this Agreement. Certificates of insurance shall be provided within ninety (90) days of the effective date of this Agreement. A Grantee shall cause the City, its Trustees, officials and employees, to be listed as an additional insured on its Commercial General Liability Insurance and Comprehensive Automobile Liability and Excess Liability Insurance policies. There shall be no additional charge for said insurance to the City. As an additional named insured, the City reserves the right to notify a Grantee's insurance carrier of any claims the City may have against a Grantee. The parties shall consult during the life of this Agreement regarding an increase of the limits of insurance coverage as stated herein, and where necessary, coverage limits may be increased upon agreement of the parties. (D) Thirty (30) Day Notice of Cancellation, Termination or Expiration of Policy: All insurance certificates reflecting a Grantee's policies, performance bonds, Security Fund, if applicable, and performance bond and letter of credit required by this Article shall contain a provision requiring at least thirty (30) days written notice to both the City and Grantee of any cancellation, termination, or other expiration and shall provide that no such cancellation, termination or expiration shall be effective prior to such notice. (E) Documents Filed With City Clerk: Each such current certificate, bond and letter of credit shall be verified by the City Attorney of the United City of Yorkville as to its compliance with the terms herein and copies of such documents, or insurance certificates shall be filed and maintained with the City Clerk. (F) Documents in Non-compliance: Should the City Attorney find a document to be in non-compliance then the City Attorney shall so notify a Grantee and Grantee shall be obligated to reasonably cure the defect. (G) Self-Insurance: A Grantee may self-insure all or a portion of the insurance coverage and limit requirements required by Subsection C of this Section. If Grantee self- insures it is not required, to the extent of such self-insurance, to comply with the requirement for the naming of additional insureds under Subsection C, or the requirements of Subsections D and E of this Section. If a Grantee elects to self- insure it shall provide to the City evidence sufficient to demonstrate its financial ability to self-insure the insurance coverage and limit requirements required under 36 Subsection C of this Section, such as evidence that a Grantee is a "private self insurer" under the Workers Compensation Act. (H) Subcontractors: If a Grantee uses any subcontractors("Subcontractors")to perform any work relating to the Cable System, Grantee will be responsible for supervision, quality control, payment and insurance of and for all work performed by the Subcontractors. Grantee will ensure that all Subcontractors are operating in compliance with all applicable federal and state laws and local ordinances. Subcontractors will be as specified in required permits if the work to be done requires a permit. SECTION 16: LINE EXTENSION: (A) Line Extension to Residences: In areas of the Franchise territory not included in the initial Franchise service area, the Grantee shall be required to extend its Cable System pursuant to the following requirements: 1. The Grantee shall extend and make Cable Service available to every dwelling unit in all unserved, developing areas having at least twenty (20) occupied dwelling units per cable mile, as measured from the existing system simultaneously with the installation of utility lines to the extent practical. 2. The Grantee shall extend and make Cable Service available to any isolated resident outside the initial Franchise service area requesting connection at the standard connection charge, if the connection to the isolated resident would require no more than a standard one hundred twenty-five (125)foot drop line. (B) Early Extension: In areas not meeting the requirements for mandatory extension of service, the Grantee shall provide, upon the request of a potential Subscriber desiring service, an estimate of the Grantee's costs required to extend service to the Subscriber. The Grantee shall then extend service upon request of the potential Subscriber. The Grantee may request advance payment or assurance of payment satisfactory to the Grantee within a period of thirty-six(36) months of payment. In the event the area subsequently reaches the density required for mandatory extension, such payments which exceed the standard Installation costs for said Installation shall be refunded to the Subscriber. (C) New Development Undergrounding: In cases of new construction or property development where utilities are to be placed underground, the developer or property owner shall give the Grantee reasonable notice of such construction or development, and of the particular date on which open trenching will be available for the Grantee's installation of conduit, pedestals, and/or vaults and laterals to be provided at the Grantee's expense. 37 The Grantee shall also provide specifications as needed for trenching. Costs of trenching and easements required to bring service to the development shall be borne by the developer or property owner; except that if the Grantee fails to install its conduit, pedestals and/or vaults and laterals within ten (10)working days of the date the trenches are available, as designated in the notice given by the property owner or developer to the Grantee, then should the trenches be closed after the ten (10) day period, the cost is to be borne by the Grantee. (D) Special Agreements: Nothing herein shall be construed to prevent the Grantee from serving geographical areas not covered under this Section upon agreement with developers, property owners, residents, or businesses. 1. The City and the Grantee shall, within a Franchise Agreement, develop terms and conditions for the extension of cable system plant, including fiber optic cabling, to existing and planned industrial and business parks. (E) The Grantee, in its application, may propose a line extension policy that will result in serving more residents of the City than as required above, in which case, the Grantee's policy will be incorporated into the Franchise Agreement and will be binding on the Grantee. SECTION 17: RATES AND FEES: (A) Uniformity of Rates: Rates for Cable Service and charges for equipment necessary for the reception of Cable Service shall be uniform throughout the Franchise Area in accordance with applicable law or regulation. Grantee may establish different rates for tiers of programming, and may establish a rate schedule appropriate to commercial enterprises which differ from such rates provided to residential Dwelling Units. Grantee may also establish separate rates for Subscribers residing in congregate Dwelling Units for which bulk billing rates may be established. (B) Non-discrimination in Application of Rates and Fees: The Grantee shall not, in its rates or charges, or in the availability of the services or facilities of its Cable System, or in any other respect, discriminate against any Persons or group of Persons protected by applicable non discrimination laws; provided, however,the Grantee may offer promotional discounts in order to attract or maintain Subscribers provided that such discounts are offered on a non-discriminatory basis to similar classes or types of Subscribers throughout the City. (C) Filing of Rate Schedule with City: A Grantee shall file annually with the City and the Consortium or any other agent designated by the City, a full, written schedule of all Subscriber and User rates and all other fees or charges. Said schedule shall be filed no less than thirty (30) days prior to the time such changes are announced by Grantee in the levels of regulated rates, fees, or other charges. 38 Unless otherwise provided in a Franchise Agreement, Grantee shall provide no less than thirty (30) days advance notice to Subscribers; and the City, with a copy of said notice to the Consortium or other agent designated by the City, of any other rates, fees, and other charges. (D) Refusal of Service: Grantee may refuse to offer service to any Person because of due or owing accounts between such Person and the Grantee. (E) Reservation of Rights to Regulate Cable Services: 1. The City reserves the right to regulate rates for Basic Cable Service and equipment of the Grantee as allowed by the FCC. The City shall notify the Grantee of its intention to file a request for certification with the FCC. Upon receipt of said certification, the City shall adopt by separate ordinance, in accordance with 47 U.S.C. §76.910, such regulations consistent with the FCC regulations governing the Basic tier of Cable Service. Where the Grantee adjusts the number of Channels provided on the Cable System to Subscribers, Grantee shall, in accordance with FCC regulations as now or hereafter amended, adjust its rates to Subscribers accordingly. 2. The City shall, within one hundred twenty (120) days of the effective date of certification: a. Exercise its rights to regulate basic cable rates, and provide reasonable opportunity for consideration of the views of interested parties, and; b. Notify the Cable Operator that the City has been certified to regulate basic cable rates and; C. Adopt regulations as required by 47 U.S.C. §76.910 (e)(1) of the United States Code of Federal Regulations. d. Notify the Cable Operator of the intent of the City to review, or to cause the review by the Consortium or other designated agent, appropriate books and records and to request same for the purpose of verifying Grantee's proposed rates for Basic Cable Service and associated services and equipment. (F) Rate Discounts: The Grantee may offer discounts in rates in accordance with applicable law. 39 SECTION 18: CABLE PROGRAMMING: (A) Categories of Service to Be Provided: A Grantee shall provide on the Cable System all Over-the-Air broadcast stations required to be carried by federal law or FCC regulations. Grantee shall provide a wide range and diversity of programming for Subscribers residing within the Franchise Area. Unless otherwise provided by a Franchise Agreement categories of programming comparable in quality, mix, and level to be provided by Grantee to Subscribers shall include, but not be limited to the following: 1. Local, regional, national, and international news programs 2. Local, regional, and national sports and sporting events 3. Local, regional, and national weather 4. Educational programming 5. Children's Programming 6. Music programming (including audio music services) 7. Public affairs programming 8. General entertainment programming, including movies 9. Cultural programming 10. Pay-Per-View programming 11. Financial and business-related programming 12. Foreign Language programming 13. Broadcast stations. Where a broadcaster providing Over-the-Air broadcast service to the Grantee has not reached an agreement with the Grantee for carriage of the broadcaster's signal by the deadline established by the FCC for consent to transmit said broadcaster's signal ("Retransmission Consent"), the Grantee shall not be obligated pursuant to this Ordinance to carry said signal until such agreement has been finalized. (B) Obscene Programming: Grantee shall comply with all applicable laws concerning the cablecasting of obscene programming. 40 (C) Allocation of Channel Space: Unless otherwise provided in a Franchise Agreement, Grantee shall dedicate an amount of Channel space on its Cable System at a minimum level of one (1) Channel for Public Access Programming, one (1) Channel for Educational Access programming, and one (1) Channel for Governmental Access. Grantee shall, where possible, cluster access programming Channels together. In no event shall the Grantee place any access programming Channel on any expanded Basic Service, satellite service, or digital service tier of programming without the express written consent of the City. (D) Distribution of Government Produced Programming: In the event that there is more than one (1) Cable Operator providing Cable Services to the Franchise Area, the City shall not be precluded from providing, or causing to be provided, programming produced for its PublicAccess, Government Access or Educational Access Channels to any Cable Operator if such Cable Operator if such Cable Operator provides a separate, direct link to the point of origination. Where a Grantee controls and supervises a Public, Educational or Governmental Access Channel Grantee shall be exempt from the requirements of this subsection. (E) Content: The content of programs on Public, Educational and Governmental Access Channels shall not be controlled by Grantee. In the event that a Grantee controls and supervises a Public Access Channel, the Grantee shall be exempt from the requirements of this subsection. SECTION 19: CUSTOMER SERVICE OBLIGATIONS: (A) A Grantee shall be subject to the following customer service standards consistent with 47 U.S.C. §76.309: 1. Cable System office hours and telephone availability. a. A Grantee will maintain a local, toll-free or collect call telephone access line which will be available to its Subscribers 24 hours a day, seven days a week. i. Trained Grantee representatives will be available to respond to customer telephone inquiries during normal business hours. ii. After normal business hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after normal business hours must be responded to by a trained Grantee representative on the next business day. 41 b. Under normal operating conditions, telephone answer time by a customer representatives including wait time shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred transfer time shall not exceed thirty (30) seconds. These standards shall be met no less than ninety (90) percent of the time under normal operating conditions, measured on a quarterly basis. C. The Grantee will not be required to acquire equipment or perform surveys to measure compliance with the telephone answering standards above unless an historical record of complaints indicates a clear failure to comply. d. Under normal operating conditions. the customer will receive a busy signal less than three (3) percent of the time. e. Customer service center and bill payment locations will be open at least during normal business hours and will be conveniently located. 2. Installations, Outages and Service Calls. Under normal operating conditions, each of the following four standards will be met no less than ninety five (95) percent of the time measured on a quarterly basis. a. Standard Installations will be performed within seven(7)business days after an order has been placed. "Standard' Installations are those that are located up to one hundred twenty-five (125) feet from the existing distribution system. b. Excluding conditions beyond the control of the Grantee, the Grantee will begin working on Service Interruptions promptly and In no event later than twenty-four(24) hours after the interruption becomes known. The Grantee must begin actions to correct other service problems the next business day after notification of the service problem. C. The"appointment window"alternatives for Installations, Service Calls, and other Installation activities will be either a specific time or, at maximum, a four (4) -hour time block during normal business hours. A Grantee may schedule Service Calls and other Installation activities outside of normal business hours for the express convenience of the customer. d. A Grantee may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. 42 e. If a Grantee representative is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer will be contacted. The appointment will be rescheduled. as necessary, at a time which is convenient for the customer. 3. Communications Between A Grantee and Subscribers. a. Notification to Subscribers. A Grantee shall provide written information on each of the following areas at the time of Installation of service, at least annually to all Subscribers, and at any time upon request: i. Products and services offered, ii. Prices and options for programming services and conditions of subscription to programming and other services; iii Installation and service maintenance policies, iv. Instructions on how to use the Cable Service. V. Channel positions of programming carried on the system: and, vi. Billing and complaint procedures, including the address and telephone number of the Franchise Authority's cable office. b. Customers will be notified of any changes in rates, programming services or Channel positions as soon as possible in writing. Notice must be given to Subscribers a minimum of thirty(30)days in advance of such changes If the change is within the control of the Cable Operator. In addition, a Grantee shall notify Subscribers thirty (30) days in advance of any significant changes in the other information required by paragraph (A)(3)(a) of this section. Notwithstanding any other provision of Part 76 of the FCC Cable Television Regulations, a Grantee shall not be required to provide prior notice of any rate change that is the result of a regulatory fee, Franchise Fee, or any other fee, tax, assessment, or charge of any kind imposed by any Federal agency, state, or franchising authority on the transaction between a Grantee and the Subscriber. c. Billing. i. Bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations Including, but not limited to, basic and premium service charges and equipment charges. 43 Bills will also dearly delineate all activity during the billing period, including optional charges, rebates and credits. ii. In case of a billing dispute, a Grantee must respond to a written complaint from a Subscriber within thirty (30) days. d. Refunds. Refund checks will be issued promptly, but no later than either: i. The customer's next billing cycle following resolution of the request or thirty (30) days. whichever is earlier, or ii. The return of the equipment supplied by a Grantee if service is terminated. e. Credits. Credits for service will be issued no later than the customer's next billing cycle following the determination that a credit is warranted. 4. Definitions a. Normal Business Hours. The term "normal business hours" means those hours during which most similar businesses in the Community are open to serve customers. In all cases, "normal business hours" must Include some evening hours at least one night per week and/or some weekend hours. b. Normal Operating Conditions. The term "normal operating condition" means those service conditions which are within the control of a Grantee. Those conditions which are not within the control of a Grantee include but are not limited to, natural disasters, civil disturbances, power outages telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of a Grantee include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the Cable System. (B) Nothing In this Section shall be construed to prevent or prohibit: . A Franchising Authority and a Grantee from agreeing to customer service requirements that exceed the FCC customer standards; 2. The Franchising Authority from enacting orenforcing any consumer protection law, to the extent not specifically preempted herein; or 44 3. The establishment or enforcement of any State or municipal law or regulation concerning customer service that imposes customer service requirements that exceed, or address matters not addressed by, the FCC customer standards. SECTION 20: CONSUMER NOTIFICATION: (A) Notification: The Grantee shall provide advance written or other notice to residents when performing scheduled system construction in the public easements, utility easements or other wise on the residents private property. Said notice may utilize door hangers, letters, bill stuffers or personal communications from a Grantee representative to a resident. Further, the Grantee shall use its best efforts to notify residents when performing non-scheduled system construction, including unanticipated work associated with a service call or Service Interruption. (B) Identification of Customer Service Representatives and Technicians: 1. Identification of Telephone Representatives. Upon telephone contact by a customer, customer service representatives of the Grantee shall identify themselves by first name. Technicians representing the Grantee or his contractors or subcontractors shall wear a company uniform, or display upon request, a bona fide company identification badge. 2. Identification of Service Representatives. Technicians of the Grantee and its contractors or subcontractors shall identify vehicles used for technical services with the name of the Grantee or contractor or subcontractor of the Grantee. Where practicable, vehicles belonging to the contractor or subcontractor shall also be identified with the Grantee's name located in a conspicuous place and manner. The type of identification need not be of a permanent nature. (C) Refunds for Termination of Cable Service: A Grantee shall issue the Subscriber a refund for any amount due to the Subscriber at the time of the termination of Cable Service. The Grantee shall refund the Subscriber in the form of a refund check. Refund checks shall be issued promptly but no later than either the customer's next billing cycle following resolution of the request, or thirty (30) days, whichever is earlier, or the return of the equipment supplied by the Grantee if service is terminated. (D) Equipment and Service Deposits: In the event that a Grantee leases accessory equipment for receiving Cable Service: 1. A Grantee may assess a reasonable deposit for the acquisition of Cable Service by a Subscriber, and for the rental of Converter box, remote control, and related equipment necessary for the reception or interdiction of Cable Service. 45 2. Upon the termination of Cable Service by the Subscriber and return of Converter boxes, remote control units, and related equipment in reasonable condition, deposits for said service and equipment shall be returned to the Subscriber within 30 days of the date that the equipment supplied by the Grantee is returned. (E) Installation of Service:A Grantee shall adhere to the following Installation standards: 1. A Subscriber shall have the option to connect a standard drop to the Dwelling Unit by either: a. Connection of the aerial drop to the Dwelling Unit at a minimum of twelve (12) feet above the ground level; or, b. Attachment of the drop to the side of the utility pole and buried from the base of the utility pole to the Dwelling Unit. 2. All temporary service drops, also known as "snow drops," shall be buried between March and December, unless the Grantee receives written permission from the City to delay burial. 3. Weather permitting,the Grantee shall bury all temporary drops within fourteen (14) business days after placement. 4. Temporary drops will be buried by the Grantee as expeditiously as possible, and in no event will a drop which has been placed between November 15th of the prior year and March 1 st of the current year be left unburied beyond May 1 st of the same year. (F) Service Disconnection: A Subscriber shall have the ability to disconnect his service at any time at no charge. The Grantee shall cease charging for the Subscriber's service on the date that service is terminated. (G) Investigation of and Complaint Procedure for Subscriber Complaints: 1. The City or the Consortium or other designated agent of the City, shall have the authority to investigate complaints tendered by Subscribers to the City. 2. When the City, or the Consortium or other designated agent of the City, refers a Complaint from a Subscriber to a Grantee for resolution, a Grantee shall investigate such Complaint within five (5) working days from the date of a Grantee's receipt of such referral. 46 A Grantee's investigation shall include contact to the Subscriber where possible, and a written response to the City, with a copy to the Consortium or designated agent if the Complaint is referred from that source. At the discretion of the City, the referral may be sent to the Grantee in writing on a form to be provided by the City, the Consortium, or other designated agent of the City. In such case, the resolution response shall be provided on the form provided by the City, the Consortium, or other designated agent of the City. Upon completion of investigation of an unresolved Subscriber service complaint, the City, in accordance with a Franchise Agreement, shall provide to a Grantee notice and an opportunity to cure any error, deficiency, or violation of the Franchise Agreement or this Ordinance found in the course of such investigation. 3. If a Grantee's response to the complaint is not satisfactory to the complainant, the complainant shall be referred to a Grantee's appropriate Cable System management personnel for further assistance. Grantee's management shall make a good faith effort to reach resolution of the complaint and shall notify the City and copy the Consortium or other designated agent of the City in writing of its effort to resolve the Complaint. If a Grantee's Cable System management cannot resolve the complaint, a Grantee shall provide the name, address, and telephone number of appropriate management staff at the next level of operations. (H) Protection of Privacy: The Grantee shall comply with all applicable laws, rules and regulations concerning consumer privacy, and shall comply with Federal laws concerning consumer privacy as expressed in Section 631 et. seq. of the Communications Policy Act of 1934 (47 U.S.C. §551), as now or hereinafter amended, or by any successor provision. SECTION 21: RIGHTS RESERVED TO CITY: (A) Right to Amend: The City reserves the right to amend this Ordinance to incorporate customer service requirements or consumer protection standards that exceed the standards set by the FCC, if such standards are deemed to be more beneficial to the City's residents. (B) Franchise Subject to Reserved Power: Every Franchise awarded pursuant to this Ordinance shall be subject to this reserved power to amend as stated in subsection A herein above, whether or not such Franchise expressly conditioned such reserved power. (C) Notice: The City shall provide the Grantee with ninety(90)days written notice of any such amendment, and an opportunity to enter comments on such amendment. Said amendments shall be adopted by ordinance. 47 SECTION 22: SERVICE TO PUBLIC FACILITIES: Unless otherwise provided for in a Franchise Agreement, a Grantee shall provide the following: (A) Grantee to Provide Connections to Specified Public Institutions: A Grantee shall provide at no charge, Subscriber cable connections and standard Cable Service to all Schools, government buildings, and public institutions as identified in the Franchise Agreement. Said connections shall be designed to support high-speed Internet access equipment if such access is provided by a Grantee. (B) Cooperative Effort: A Grantee shall cooperate with the City, Schools, and governmental entities as stated in a Franchise Agreement to facilitate utilization of Cable Services to multiple outlets throughout their facilities. SECTION 23: PROHIBITED ACTS: (A) Unlawful Use of Equipment, Devices, Computer Hardware or Software: It shall be unlawful for any Person to install, attach, wire, program, or connect or to cause to be installed, attached, wired, programmed, or connected any equipment, device, or computer hardware or software, which enables the use of cable television or data signals transmitted by the Grantee without compensation to the Grantee for said cable television or data signals. This section shall not prohibit the recording of programming or downloading of data as allowed under applicable State and Federal law. (B) Reselling Service Prohibited: No Person receiving within the Franchise Area any Cable Service, program, or signal transmitted by any Grantee operating under a Franchise issued by the Franchising Authority shall resell such service, program, or signal without the expressed written consent of the Grantee. SECTION 24: PENALTIES: A Grantee shall comply with the requirements of this Ordinance and the Franchise Agreement at all times during the term of its Franchise. If the City has reason to believe that a Grantee has committed a certain violation of this Ordinance or the Franchise Agreement, the City may act to remedy the violation. 48 (A) Remedies Retained: No provision of this Ordinance shall be deemed to bar or otherwise limit the right of the City to seek or obtain judicial relief from a violation of any provision of the Franchise or any rule, regulation, requirement, or directive promulgated thereunder. Neither the existence of other remedies identified in this Ordinance nor the exercise thereof shall be deemed to bar or otherwise limit the right of the City to recover monetary damages, except where liquidated damages are otherwise prescribed,for such violation by the Grantee, or judicial enforcement of the Grantee's obligations by means of specific performance, injunction relief or mandate, or any other remedy available contractually, at law or in equity. (B) Fine Imposed: Unless otherwise provided, any Person convicted of violating any provision of this Ordinance or any rule or regulation promulgated hereunder shall, upon conviction, be subject to a fine not to exceed seven hundred fifty dollars ($750.00) and costs for each offense. Each day of a continuing violation shall constitute a separate and distinct offense. (C) Liquidated Damages: The Franchise Agreement shall include provisions for liquidated damages to be paid by the Grantee, in amounts set forth in the applicable Franchise Agreement and chargeable to a security fund. (D) Violation Procedures: 1. Notice of Violations. Written notice shall be given to a Grantee setting forth the nature of the violation and a reasonable period of time for a Grantee to correct the violation. Unless the City determines that the violation is of such a nature that a lesser period of time is warranted for remedying the violation, a Grantee shall be given thirty(30)days after receipt of such notice to remedy the violation. 2. Answer to Notice of Violations. Within thirty (30) days, or such other period of time specified by the City in its notice to a Grantee, a Grantee shall respond in writing to the City: a. That it contests the City's notice of violation and requests an opportunity to be heard as provided herein. A Grantee shall submit supporting documentation with its response to the notice. b. That it contests the City's notice of violation for the reasons that the violation was beyond the reasonable control of a Grantee and requests an opportunity to be heard as provided herein. A Grantee shall submit supporting documentation with its response to the notice. C. That a Grantee will remedy the violation within the time specified by the City in its notice to a Grantee. 49 d. If a Grantee contends that an extended period of time is reasonably needed to remedy the violation, it shall submit a written request for an extension, together with supporting documentation that a Grantee cannot reasonably remedy the violation within the time period specified by the City in its notice to a Grantee. The City shall not unreasonably deny an extension of time to remedy the violation. If the City grants the extension, a Grantee shall proceed to remedy the violation within the extended time prescribed, provided that a Grantee also informs the City on a regular basis of the steps being taken to remedy the violation. 3. Hearing. The City shall give a Grantee not less than fourteen (14) days written notice of the date, time and place of the public hearing to be held before the City Council. At the public hearing, the City Council shall hear and determine the issues and render its findings and its decision. If a hearing officer has been appointed by the City, the hearing officer shall hear the relevant evidence and shall render a record of the administrative hearing and recommended findings and decision to the City Council. 4. Determination. If the Grantee fails to submit a written response to the City's notice of violation as provided in Paragraph 2 above, or if a Grantee fails to remedy the violation within the time period specified by the City in its notice to a Grantee, or any extensions thereto granted by the City, or if the City Council is persuaded after a hearing that a Grantee has committed a violation as provided herein, the City Council may, after giving a Grantee an opportunity to be heard: a. Order a Grantee to remedy the violation within a reasonable period of time specified by the City Council. b. Assess liquidated damages against a Grantee in accordance with the Franchise Agreement. C. Impose any lesser sanction permitted by a Franchise Agreement. 5. Judicial Relief Not Barred. No provision of this Section shall be deemed to bar or otherwise limit the right of the Franchising Authority to seek or obtain judicial relief to enforce the provisions of this Cable Communications Ordinance. SECTION 25: NOTICE TO COMPLY: (A) Compliance Periods: Unless otherwise stated in this Ordinance or in the Franchise Agreement, the Grantee shall comply with the terms and conditions of the Ordinance or Franchise Agreement with respect to compliance periods. 50 (B) Designation of Agent For Notification: The Grantee shall designate a Person within its management structure who shall have the authority to receive and respond to notifications sent by the Franchising Authority of Franchise violations, Subscriber complaints, or other concerns relating to the Franchise. (C) Grantee's Continuing Obligation: Subject to the provisions of this Ordinance, a Grantee shall not be relieved of its obligations to comply with any of the rules, regulations, requirements, or directives as stated within this Ordinance or the Franchise Agreement by reason of any failure of the City or its officers, agents, or employees to enforce prompt compliance, nor shall such be considered a waiver thereof. SECTION 26: POLICE POWERS: Nothing in this Ordinance or in any Franchise Agreement shall be construed as an abrogation by the City of any of its police powers. SECTION 27: NON-DISCRIMINATION: A Grantee shall make its services available to any customer within the Franchise Area who shall request such service, without discrimination as to the terms, conditions, rates or charges for Grantee's services; provided, however, that nothing in this Ordinance shall prohibit a Grantee from making any reasonable classifications among differently situated customers. SECTION 28: EQUAL EMPLOYMENT OPPORTUNITY: Throughout the term of a Franchise, the Grantee shall fully comply with the equal employment opportunity requirements of the applicable federal, state, and local law, and, in particular, FCC rules and regulations relating thereto. Upon request by the City, the Grantee shall furnish the City with a copy of the Grantee's annual statistical report filed with the FCC, along with proof of the Grantee's annual certification of compliance. SECTION 29: SEXUAL HARASSMENT POLICY: Any Grantee holding a Franchise on the Effective Date of this Ordinance, or which is awarded a Franchise under the conditions of this Ordinance, shall be required to have in force a written policy regarding sexual harassment which complies in all respects with the Illinois Human Rights Act 775 ILCS 5/2-105(A)(4) (1997). 51 SECTION 30: COMPLIANCE WITH OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION REGULATIONS: Grantee shall comply with the standards of the Occupational Safety and Health Administration, and safety standards established by the Department of Labor of the State of Illinois in maintaining its operational facilities, working conditions, and work procedures utilized as a part of the construction, upgrade, installation, repair and maintenance of the Cable System. Grantee's equipment shall bear all FCC and appropriate safety agency markings. SECTION 31: COMPLIANCE WITH LAWS: The City and the Grantee shall at all times comply with all applicable laws and regulations of federal, state and local governments, or any administrative agencies thereof. SECTION 32: GRANTEE MAY PROMULGATE RULES: Grantee shall have the authority to promulgate such rules, regulations, terms, and conditions of its business as shall be reasonably necessary to enable it to exercise its rights and perform its services under this Ordinance and the rules of the FCC, and to assure uninterrupted service to each and all of its Subscribers. Such rules and regulations shall not be deemed to have the force of law. SECTION 33: WAIVER: (A) Effect of Failure to Require Compliance: A Grantee or other Person may not be excused from complying with any of the terms and conditions of this Ordinance or a Franchise Agreement by any failure of the Franchising Authority, upon one or more occasions, to require compliance or performance. (B) Waiver of Requirements: The Franchising Authority may, on its own motion or at the request of an applicant or Grantee for good cause shown, waive any requirement of this Ordinance. SECTION 34: NO RECOURSE AGAINST CITY: To the extent that the Local Government Tort Immunity Act and any other laws immunize the City and it officials, boards, commissions, agents, or employees, a Grantee shall have no recourse whatsoever against the City or its officials, boards, commissions, agents, or employees for any loss, costs, expense, or damages arising out of any provision or requirement of the Ordinance or Franchise Agreement. A Grantee shall expressly acknowledge that upon accepting the right, privilege and franchise granted pursuant to the Ordinance, it does so relying upon its own investigation and understanding of the power and authority of the City. 52 1 By the acceptance of a Franchise, a Grantee shall agree it will not at any time set up against the City in any claim or proceeding any provision, condition or term of the Ordinance or the Franchise Agreement as unreasonable, arbitrary or void or that the City had no power or authority to make such provision, term or condition as part of or pursuant to the Ordinance, except as to those matters preempted by federal or state law. SECTION 35: TIME IS OF THE ESSENCE: Whenever any provision of this Ordinance or the Franchise Agreement shall set forth any time for any act to be performed by a Grantee, such time shall be deemed to be of the essence. SECTION 36: FORCE MAJEURE: Whenever a period of time is provided for in this Ordinance or the Franchise Agreement, for either the City or the Grantee to do or perform any act or obligation, neither party shall be liable for any delays due to war, riot, insurrection, rebellion, unavoidable casualty or damage to personnel, materials, or equipment, fire, flood, storm, earthquake, tornado, orders of a court of competent jurisdiction, any act of Nature, failure of a utility provider to provide pole attachments on reasonable terms or conditions therefore, or any cause beyond the control of said party. In such event, said time period shall be extended for the amount of time said party is so delayed. An act or omission shall not be deemed to be beyond a Grantee's control if committed, omitted, or caused by a corporation or other business entity which holds a controlling interest in the Grantee, whether directly or indirectly. Further, the failure of a Grantee to obtain financing, or to pay any money due from it to any Person, including the City, for whatever reason, shall not be an act or omission which is beyond the control of the Grantee. SECTION 37: DELEGATION OF AUTHORITY BY THE CITY TO THE CONSORTIUM OR OTHER AGENT: Pursuant to the City's authority to enter into intergovernmental agreements under Illinois law, the City may transfer or delegate any non-policy making and ministerial function of the City, the Franchising Authority, or any official of the City, under this Ordinance by ordinance, resolution, or other appropriate action of the City, to the Consortium or other designated agent of the City, which has been created or designated for the purpose of monitoring compliance, advising, facilitating enforcement, investigating, and any other non-policy making and ministerial functions relating to the operation and development of the Cable System. In the delegation of such authority, the City shall not interfere with a Grantee's ability to communicate with and respond directly to its Subscribers, the City and City officers, agents, and personnel. 53 SECTION 38: SEVERABILITY: The provisions of this Ordinance are severable, and if any provision or application is ever held to be illegal, unconstitutional, invalid, or unenforceable, such holding shall not affect the remaining provisions or parts thereof not held invalid. SECTION 39: NO WAIVER OF RIGHTS BESTOWED BY VIRTUE OF LAW: The City does not waive or release rights bestowed upon it by virtue of law or statute. SECTION 40: GOVERNING LAW AND VENUE: This Ordinance shall be governed in accordance insofar as applicable with the laws of the State of Illinois. Where federal jurisdiction applies, this Ordinance shall be governed by the applicable laws and agencies of the United States Government.Venue shall be in either the Circuit Court of Kendall County, or the United States District Court, Northern District of Illinois, Eastern Division. SECTION 41: EFFECTIVE DATE: This Ordinance shall become effective ten (10) days following the passage, approval, and publication in accordance with the requirements of law. PASSED this I(-) day of 2002. AYES: --\ NAYS: CD ABSENT: APPROVED this L U day of 2002. Art Prochaska Mayor ATTESTED AND FILED IN MY OFFICE: A . Cit rk 54 TCI Illinois Holdings, L.P., a unit of AT&T Broadband, a Colorado Corporation, being the signatory of a Franchise Agreement with the United City of Yorkville dated , 2002, and entered into with the United City of Yorkville pursuant to the authority of Section 3 herein, having read a copy of this Ordinance, and having the authority to agree on behalf of TCI of , Inc., does hereby accept the terms of this Ordinance and agree to abide by those terms. TCI Illinois Holdings, L.P. By Its Dated: , 2002 55