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HomeMy WebLinkAbout1996 CON Cox Cable - Compliance ReportCity of National City, California COUNCIL AGENDA STATEMENT MEETING DATE January 16, 1996 AGENDA INO. 13 TEM ITEM TITLE Annual Cable Television Franchise Compliance Status Report Submitted by Cox Communications San Diego PREPARED BY G. J. Bolint EXPLANATION See attached staff report. DEPARTMENT City Manager Environmental Review X N/A Financial Statement N/A STAFF RECOMMENDATION Accept and File Account No. BOARD/COMMISSION RECOMMENDATION N/A ATTACHMENTS (Listed Below) 1. Status Report Resolution No. A-200 (Rev. 9/80) STAFF REPORT RE: ANNUAL CABLE TELEVISION FRANCHISE COMPLIANCE STATUS REPORT SUBMITTED BY COX COMMUNICATIONS Background In March 1984 the City Council approved renewal of the Cox Communications franchise. One of the franchise provisions requires Cox Cable to file in December of each year an annual status report regarding operations and franchise compliance. The purpose of this staff report is to transmit the latest annual report submitted by Cox Communications to the City Council for review and official acceptance and filing. Report filed by Cox Communications Attachment 1 Is the current annual report filed by Cox Communications in responseto the franchise requirements. In the sections below the responsesare keyed to the appropriate Code Sections followed by staff comments. A. Code Provision/Channel Capacity. Programming - The Code calls for continued availability and enhancement of national and international transmission capabilities via communications satellites and enhancement/expansion of system channel capacity and programming. Cox is in the process of upgrading the National City cable system. Currently, some parts of the City receive 62 Channels of programming and capacity while other parts have been upgraded to 78 channels with plans calling for a 110 channel capacity system, by April 1996. Included with the letter from Cox is a fact sheet regarding the upgrade. Staff Comments - At 62 channels of both capacity (number of channel spaces available for use) and programming (number of channels of programming to subscribers), Cox Communications had been operating at fuil capacity. Staff Is pleased to see that Cox is implementing a system expansion. B. Code Provision/Public Access, Local Orloination, Local Government and Local Education Programming - The Code calls for improvement and expansion of the system in the above areas. Cox Response - Cox reports that it has continued the extensive outreach program in order to involve more people in public access programming. According to the report, the company has provided public access training to National City residents and has made available equipment and studio facilities. Specific examples of access programs are listed in the report. With respect to governmental and educational programming, the company provides channels for serving these purposes. The company has also broadcast Civic information about meetings and events on its Community Bulletin Board. Staff Comments - Staff has reviewed the company's outreach and access efforts and feel that the promotional and operational effort in this area continues to be satisfactory. With respect to educational programming, quite a bit is being done County wide in this area. On the subject of municipal programming, staff continues to review possible applications. City staff has and will continue to work with Cox Communications in terms of exploring possible applications of City public relations and training programs. C. Code Provisionllndustry and Federal Communications. Commission (FCC) standards - The Code provides that Cox shall continue to maintain its cable system to meetor exceed accepted and proven CATV industry and FCC standards. Cox Response - Cox reports that it is in compliance with FCC and industry standards. Staff Comments - By law, the cable company must meet FCC technical standards. With respect to "accepted and proven" industry standards, there are no pre -established guidelines as to what is "state of the art". Based upon staffs knowledge of current trends in the industry and a review of what is offered in other San Diego County cities and cities throughout California generally, staff is satisfied, with the company's response to this Code provision especially in light of the current upgrade. We will, however, as in the past, continue to monitor developments in the CAN industry. D. Code Provision/Two-Way Interactive Services - The code provides that Cox shall continue to evaluate the feasibility of two-way interactive programming and services (i.e., "bank -at- home", burglar alarm systems, etc.). Cox Response - Cox reports that its current plan calls for upgrading National City in early 1996 to two way interactive service capability. Staff Comment - Staff is pleased with the report that two way interactive service capability will soon be implemented. E. Code Provision/Other New Technologies or Advances in the CATV Field - The intent of the Code in this section is to encourage the franchisee to continue to monitor and, where feasible, to implement new technologies in system design or services. Cox Response - Cox indicates that it continues to evaluate and where appropriate and feasible, implement new cable technologies and advancements. Staff Comment - Staff supports, Cox Cable's evaluation and implementation of alternative technologies where feasible. F. Other Items of Interest/Cabling of City Facilities and Compliance with Franchise Requirements on Obscene or Oblectionable Adult Pay Programming - The City's franchise with Cox Cable requires cabling of designated City facilities for basic cable service. The primary purpose of this provision is to permit access by City departments to cable service for training, education and other public service related purposes. Cox reports that it has completed installation of basic service to all city and school facilities as requested. The City's franchise with Cox Communications also requires the company to implement a program designed to eliminate cablecasting of "obscene or objectionable adult pay television programming" to those subscribers who do not wish to receive such programming. Cox Cable, in its status report indicates that it continues to implement the provisions of the referenced sections and that it is in compliance as required. Conclusion As noted in this report, staff is satisfied with this year's annual report and with Cox Communications compliance with its franchise ordinance in all relevant areas. As always, staff will continue to closely monitor developments in the industry, Federal and State CATV legislation and the continued compliance of Cox Communications with franchise terms and conditions. December 4,1995 n 0 Mr. Gerry Bolint Assistant City Manager City of National City 1243 National City Blvd. National City, CA 91950 Dear Mr. Bolint: 5159 Federal Boulevard San Diego, California 92105-5486 (619) 263-9251 co COMMUNICATIONS The following report is made in accordance with Cox Communications' franchise agreement with the City of National City (Ordinance #1815) and Chapter 6.10 of the Municipal Code -- "Cable Television" -- requiring a report in December of each year in the following areas: Technological Developments Section 6.10.170 1. Number of Channels: There has been no change in the total number of channels during 1995. The Disney Channel has been added to all Basic + CPS (Cable Programming Service) customers as part of their regular monthly cable package. 2. Public Educational and Government Access: In 1995, Cox Communications continued an outreach program in order to involve more people in public access programming. Cox provided public access training and has made equipment and studio facilities available to all residents of National City. Cox has also sponsored the following programs: — Public Service announcements, original programming and free air -time for charitable organizations. — Cox Communications carried the Mayor's State of the City address in May 1995, and a rebroadcast in June. Cox Communications continues to make channel access available to local government and for local educational and public access programming. 3. Standards: Cox Communications continues to maintain its cable system to meet and exceed CATV and FCC Standards. (See Attachments) 4. Cox Communications current plans include upgrading National City in early1996 to 750 MHz capacity (110 Analog channels) with two-way interactive capabilities. 5. Cox Communications continues to evaluate new technologies and advancements in the CATV field. (See Attachments) Locking Devices to Permit Exercise of Parental Discretion and Adequacy of Signal Scrambling Procedures, Section 6.10.240. Cox Communications is in compliance with this section. Ordinance #1815 Section 10: Cox Communications channel capacity is now 62 channels. Section 11: Cox Communications is providing basic service to all city offices and facilities that have been designated by the City Manager, and to all public schools designated by the Superintendent of the National City School District. Section 12: Cox Communications is meeting all requirements of this section and continues to be committed to eliminating reception of adult pay programming to those subscribers who do not wish to receive such programming by placing a trap on the line, at the request of the customer. Cox Communications will also continue to publicize and offer, at a minimal charge to subscribers, a replacement converter, properly programmed. Finally, Cox Communications will continue providing customers with information regarding detuning of "cable ready" television sets and installing properly programmed converters or decoders in all new customer households. Cox Communications believes we are in compliance with the franchise terms and conditions. We appreciate the fine working relationship between Cox Communications and the City of National City and look forward to working with you on issues of mutual interest. Respectfully submitted, illiam Geppert Vice President WG: dtl General Manager cc: Sandy Murphy, V.P. Public & Community Relations Steve Collins, Community Relations Specialist rm" YOUr Conn ;ction To TN! Future • atelll. COX COMMUNICATIONS Your Connecrion To The Fulure. ■ First cable TV company in San Diego County (1961). ■ Largest cable company in California. ■ Serves 15 local cities, Camp Pendleton, and portions of San Diego County (17 non-exclusive franchises). ■ Provides 465,000 customers with service out of a potential total of 682,000 (68%). ■ Has 5,200 miles of coaxial cable plant. ■ And more than 30,000 glass miles of fiber optic cable plant. COMMUNICATIONS Your Connection %The Future. ■ Employs almost 890 local employees whose combined salaries add $23,200,000 to the economy each year. ■ Pays $9,400,000 each year to local government in the form of franchise fees and property taxes. ■ Pays more than $25,000,000 each year in total taxes. ■ Purchases over a million dollars of goods and services from local vendors each year. COMMUNICATIONS Your CuunechonToThe Muhn . Customer Service "Customer is Key" Award. ■ Finalist - six times ■ Winner - two times Commuoitq Support • $500,000 a year in support of local schools • Over $2,000,000 a year to local non -profits Technologq Leaaer Since 1990 invested $160,000,000 in two-way fiber optic network. COMMUNICATIONS n s;sx s o 33 ssssusrssss�ssa i ux3 auk Your Connection ToThe Future. Cvrreollij.. . ■ Total customers • Total activated, view* • Limited Basic • Expanded Basic • Optional (Encore) • Premium TV • Pay -Per -View la+ Icy channels • Total homes passed Iry able plant • Penetration Rate • Total system coaxial plant • Underground coaxial • Overhead coaxial 19 channels 33 channels 1 channel 6 channels 3 channels 16 miles 70 miles 7,409 62 channels 16,239 46 percent 86 miles COMMUNICATIONS Your Connection To The Future. coy, COMMUNICATIONS Your Connection to the Future. • Cox Communications is working to provide our customers with access to the latest products and services available along the "Information Super- highway." • To provide this access, Cox crews and contractors are "upgrading" our cable system with fiber-optic cable and advanced electronics. • While this process may require accessing the dedicated utility easement located adjacent to residents' property, or temporarily interrupting customers' cable service, we will do our best to minimize any inconvenience. SYSTEM UPGRADE OVERVIEW • Launched in January 1990. • Over 30,000 glass miles of fiber-optic cable deployed to date. • Most fiber-optic cable deployed nationwide of any other cable MSO. • Over $160 million invested in capital improve- ments. • All customers to be upgraded to at least a 78- channel capacity by... --April 1996 (South) --December 1996 (North) coil COMMUNICATIONS BRINGING THE FUTURE TO NATIONAL CITY Nov. 1995 - April 1996 Before 62-Channel Capacity (450 MHz) Coaxial Cable System Tree & Branch Design One -Way Capable After 110-Channel Capacity (750 MHz) 12 New Channels Travel Channel GEMS MTV Latino Home Shopping Network ValueVision fX Mind Extension University Outdoor Life Continuous Hits 3 ESPN2* The History Channel* Turner Classic Movies Hybrid Coax -Fiber System Ring -in -Ring Design Two -Way Capable cox COMMUNICATIONS UPGRADE BENEFITS Immediate • Additional Programming Services • Enhanced Reception • Improved Reliability Near Future • Access to a Variety of New Technologies --Impulse Pay -Per -View (IPPV) - -Distance Learning - -On-line Information Services • Sprint Venture: New Choices in Telephone Service, at Competitive Prices - -Personal Communications Services (PCS) - -Wireline --Cellular code COMMUNICATIONS THE UPGRADE WILL GIVE COX CUSTOMERS... CHOICE --Choose from hundreds of channels CONTROL --Watch what you want to, when you want to QUALITY --Enhance the education experience with distance learning SPEED --Access on-line information services 50 times faster CONVENIENCE --Take your PCS phone with you wherever you go cox COMMUNICATIONS THE UPGRADE PROCESS 1. Rod/Rope 2. Pre -sweep 3. Fiber Installation* 4. Power Supply Placement* 5. Trenching* 6. Cable Splicing** 7. Drop Repair** 8. Final Sweep/Activation * May require access to the dedicated utility ease- ment located adjacent to residents' property. **Service interruptions may occur from 7 a.m. to 5 p.m but should last no more than 3 days. COIL COMMUNICATIONS CUSTOMER NOTIFICATION PROCESS In Progress Newspaper Publicity "The Cox Connexion" Postcards to Customers Color -coded Door Hangers to All Homes Passed --Construction --Splicing --Activation TV Spots Future Plans "Community Bulletin Board" Customer Newsletter Neighborhood Parties cow COMMUNICATIONS UPGRADE COMMUNICATIONS TEAM Dedicated Staff 1 Communications Manager 1 Customer Relations Assistant 4 Customer Relations Field Reps. Goals • To provide proactive communications, i.e. educa- tion and information, about Cox's system upgrade. • To resolve customer inquiries about the upgrade both promptly and with courtesy. • To identify common trends relating to customer inquiries and develop procedures to prevent them from reoccuring. • To enhance the image of the upgrade. COMMUNICATIONS In The Future ... • A two-way, high speed, state-of-the-art broadband network capable of voice, video and data transmissions. • A communications infrastructure for online information services like Prodigy, America Online, the Internet, etc. • Capable of carrying computer -based videoconferencing communications. • Serving as a backbone for new wireless phone service called PCS. • And capable of providing regular wireline phone service. mN1sumiRin3 cox COMMUNICATIONS Your Connection To The Future. November 8, 1995 Mr. George Waters Mayor City of National City 1243 National City Blvd. National City, CA 91950 Dear Mr. Waters: 5159 Federal Boulevard San Diego, California 92105-5486 1619) 263-9251 cow COMMUNICATIONS National City will soon be joining the rest of the county in a significant move toward the future! Over the next five months, Cox Communications will be working to put our 7,400 customers in the City of National City at the center of the communications, entertainment and information universe. The immediate result of our cable system upgrade will be improved reception, more reliable service and additional programming services. Specifically, customers will receive at least 74 channels by the end of the upgrade and will have the capacity for hundreds of channels as new programming is added. In addition, the upgrade will give our customers access to a variety of new technologies in the future that will open up the door to a more interactive environment, along with new choices in telephone service at competitive prices. Cox has been preparing for the future ever since we launched our now $160 million system upgrade over five years ago, replacing thousands of amplifiers and tens of thousands of connecting devices throughout the greater San Diego area. Our crews are now in the process of installing fiber-optic cable throughout National City -- building upon the more than 30,000 glass miles of fiber-optic cable that we already have in place throughout the county. The short term impact of all this progress, however, is some inconvenience. To minimize service interruptions, our crews will be working between the hours of midnight to 6 a.m., as well as throughout the day. The most noticeable interruptions will occur between the hours of 7 a.m. and 5 p.m. but should last no more than three days. In addition, crews may need access to the dedicated utility easement located adjacent to customers' and non -customers' property to install fiber-optic cable and improve equipment. Within the next week, we will begin notifying both customers and non -customers about our upgrade plans through postcards and door hangers. In addition, our crews and vehicles will be clearly identified. Due to the very early morning hours during which much of our work will take place, however, please be aware that the City may receive calls from concerned citizens. Should you have any questions or would like additional information, please don't hesitate to contact me at 266-5369 or Steven Collins at 266-5515. Sincerely, Kimberly A. Kasitz Upgrade Communications Manager cc: Mgi Sam Attisha, Steven Collins, Jack Connolly 90 — 80 70 60 50 - 40 — 30 — 20 — 10- 0 Jan Feb National City Cable Television Performance Report January - October 1995 Mar Apr May Jun Jul Aug Sep Oct ® Same Day ■ Next Day ❑ Two Day El > Two Day '30/95 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE February 27, 1996 3 AGENDA ITEM NO. ITEM TITLE Annual Status Report Submitte PREPARED BY G.J. Bolin EXPLANATION. See attached. National City Cable DEPARTMENT City Manager Environmental Review X N/A Financial Statement N/A Account No. STAFF RECOMMENDATION Receive and File. As in the past, unless there is additional Council direction, staff will continue to monitor the situation and advise the Council as appropriate. BOARD/COMMISSION RECOMMENDATION N/A ATTACHMENTS (Listed Below) 1. Staff Report 2. Memo from City Attorney 3. Municipal Code Previsions Resolution No. A-200 (Rev. 9/80) EXPLANATION A. Background On March 7, 1989. the City Council granted Ultronics dba National City Cable, a cable television franchise. The franchise became effective April 7, 1989. National City Cable is required to provide annual and semi-annual status reports to the City. A copy of the most recent status report for 1995 is attached (Attachment 1). B. System Construction and Cable Litigation Status The company, as has been reported previously, reports completion of Phase I of system construction (the area bounded by National City Boulevard and I- 805). As the Council is aware, construction of Phase II (the area bounded by 1-805 and the east City limits) and Phase III (the area bounded by National City Boulevard and the west City limits) has been impacted by intervening litigation involving the parent company (Ultronics) and minority shareholders which, according to National City Cable, has drained its financial resources and hence its potential construction capital. As the Council has also been advised previously, the construction deadlines contained in the franchise agreement called for completion of Phase II by June 7, 1993 and Phase III by April 1994. Obviously, these deadlines were not met. Since the Council had previously waived the performance bond requirement at the request of the Grantee, there was no immediate or automatic impact or penalty resulting from the construction delays. The City Attorney concluded in a memo dated April 1, 1993 (attached) that the imposition of any enforcement relating to cable construction delays was totally discretionary by the City and hence that action is not required by the Municipal Code. The applicable code provisions relating to construction delays are also attached for Council information (Attachment 3). To date, as the Council is aware, the City has not taken any follow-up action relative to construction delays. Also, since the City has not formally extended the deadlines for Phase II and Phase III, they are still technically in effect. It should again be noted, as it has previously, that even with only Phase I completed, National City's situation with half the City experiencing direct cable competition is extremely unique on a nationwide basis. According to the attached status report, Phase II engineering is basically completed. As noted, however, construction resumption continues to be delayed due to potential construction funding from an insurance claim being used to pay legal expenses and to settle outstanding debts. Reference has been made in the past to the related lawsuits and to the fact that to date over $2,000,000 has been spent by the Grantee on litigation involving the company. It should be noted that construction of the Chula Vista system has also been impacted and halted due to these ongoing financial difficulties. The report indicates that remaining funds are currently being held in reserve pending further determinations on plant build -out. Staff requested elaboration on this section of the report given the previously mentioned franchise deadlines. According to the Grantee, insufficient capital reserves are currently available to completely build out Phase II. Factors which have reportedly also impacted this scenario include competitive uncertainties created by the recently approved Federal Communications Bill and its provisions relating to telephone company entry into the cable marketplace, the current Cox system upgrade which has enhanced its competitive position and as can be seen in the section below, a continuing decline in the National City Cable subscriber base due to a loss of single family residential subscribers to Cox. The bottom line according to the Grantee, is that at this particular point in time, continued build -out is not financially feasible or cost-effective and the company is therefore in a holding pattern. C. System/Subscriber Information According to the status report, the company currently serves a total of 1,461 subscribers in National City which is down from the 1,501 reflected in the 1994 status report. The system channel capacity is 62 channels. Fifty-four channels of basic service are offered to subscribers at a rate of $19.95 per month. Follow-up discussions with the company continue to indicate that two-way interactive technology has not yet been deemed cost feasible. Consistent with the franchise, the company also indicates that it will make available to subscribers upon demand methods to ensure that adult pay programming, which is not desired, is not received. The company also reports regarding some of its recent activities in the area of community support, the cabling at no charge of the new Boys and Girls Club facility, the pre -wiring of TELACU for cable and the launching of the Filipino channel as well as plans to provide cable for the PACNC Center. This report is for Council receipt and file. Unless the Council has additional comments or direction, staff will, as in the past, continue to monitor the situation and stay in contact with the Grantee relative to litigation related matters and potential construction financing and will report back to the Council as appropriate. The Grantee will be present at the meeting to respond to any Council inquiries. National City Cable, Inc. A DIVISION OF ULTRONICS, INC. FRANCHISED CABLE OPERATOR December 20, 1995 Mr. Gerald Bolint Assistant City Manager City of National City 1243 National City Blvd. National City, CA. 91950-4397 O- 00 Re: National City Cable: Semi -Annual Status Report Pursuant to the Franchise Agreement between Ultronics, Inc., and the City of National City; the following status report is hereby submitted: National City Cable, Inc. has completed 43 miles of cable plant in Phase I (The area boundried by National City Blvd. on the East and Highway 805 to the West). In addition, three miles of cable plant are activated in Phase II (East of 805). National City Cable, Inc. currently passes 8,285 homes with 1,461 subscribers as of December 1, 1995. Phase II engineering is virtually complete; but all construction for this additional 41 mile section is still on hold pending funding. A substantial sum of monies was obtained through an insurance company settlement on a claim by Ultronics, Inc. Agreements were made with a group of National City Cable's past creditors to settle past debts. Funds are currently being held in reserves; pending further decisions on cable plant buildout. National City Cable, Inc. is providing basic cable to National City residents for a standard monthly rate of $19.95, a senior monthly rate of $18.95 and a handicapped monthly rate of $17.95. Only one tier is utilized; with all subscribers receiving 54 basic channels. The Disney Channel (a $9.95 monthly premium service on other cable systems) is offered at no additional charge as a "basic" channel. National City Cable, Inc. post -wired Telacu Southbay Manor free of charge in October 1995. Over half of its seventy six residents are now cable subscribers. This complex was not pre -wired for cable, and the other cable provider refused to wire the building. 581 C Street • Chula Vista, California 91910 • (619) 47-CABLE • Fax (619) 476-9811 National City Cable, Inc. A DIVISION OF ULTRONICS, INC. FRANCHISED CABLE OPERATOR National City Cable, Inc. is proud to have launched The Filipino Channel on December 18th of this year. The Filipino Channel is a twenty-four hour premium channel direct from the Philippine Islands. No other cable television system south of San Francisco currently has this channel. Arrangements are being made to wire the PACNAC Community Center at no charge and to provide The Filipino Channel on an ongoing basis without charge. Our community ties are important; and we are happy to have provided support for the Boys and Girls Club of National City in the past year. I believe that National City Cable, Inc. provides the finest basic cable television system in the Nation at the lowest per channel cost. National City Cable, Inc. will continue the highest levels of cable services to the residents of National City at the lowest possible prices. Sincerely, Martin Altbaum President Ultronics, Inc. National City Cable, Inc. 581 C Street • Chula Vista, California 91910 (619) 47-CABLE • Fax (619) 476-9811 City of ._.mat City - Office Di " the City Attorney 1243 National City Boulevard, National City. CA 91950 George H. Eiser, ell - City Mornay (619) 336-42.20 Fax (619) 336.4376 TDD (619) 336.1615 TO: Assistant City Manager FROM: City Attorney SUBJECT: Nature of City Council Action in Event of Default by CATV Franchisee . You have raised questions regarding the nature of event of default by a CATV franchisee. I will respond possible e q questions ons order the CuLi_STION' NO " 1: If the City Council does not extend the construction deadline the penalties for delay in construction set forth in Municipal Code Section 6.10.086(A)(1) and (A)(3) and 6.I0.260(A)(7) become operative immediately? �ru R No ;.Section 6.10.086 is prefaced by the following language: 'The city mrvn :r&e O, li sen and in addition to "any other remedies legally available ... apply any or all of the fo lomng penalties fora material breach of the provisions of this chapter or any franchise ordinance under this chapter.' (Emphasis added.) Likewise, Section 6.10.260 begins with the following language: -•ih e city zenaLubfaithi to revoke any franchise granted 'under chapter and to rescindiail rights and privileges associated with the franchise in the following circurnstances....' (Emphasis added.) Eased upon this language, the City Council has the option but not the dut to ursue penalties set forth in Sections 6.10.086 and 6.10.260. Y P the . • DATE: April 1, 1993 llamas %_:_a.2: If construction of the CATV system was delayed for more than 6 months, could the City Council reduce the term of the franchise. and if construction was delayed for more than 18 months, could the Council revoke the franchise? ANS.w...E.L: Yes. After a 6 month delay in completing construction, the City ma • reduce the duration of the franchise on a month -to -month basis for each month of delay exceeding 6 months. (Section 6.10.86(A)(I).) If the delay in construction exceeds l8 months, the City may revoke the franchise. (Section 6.10.260(4)(7i.) GHE/sbc `e gape, GEORGE H. EISER, III City Attorney 0 to by i and to city in hereafter D. Ne ter nor any be construed t or. similar, . fran either within or E. The city c nary and lawful in chapter_ (Ord. 1816 -U C. There is reserved to the city ' _ hich is required to be herein reservee dorrprovided by a •inance or resolution of the city, or by the laws or consti- ons of the state or federal government, and the grantee, acceptance of any franchise, agrees to be bound thereby omply with any lawful action or requirements of the ts•exercise of such rights or power, heretofore or reacted or established. 'ther the granting of a. franchise under this chap - the provisions contained in this chapter shall prevent the city from granting any identical, hise to any.otherperson, firm or corporation, • aside the designated area of any franchise. cil may,,, do all things which are neces- exercise of its jurisdiction under this rt), 1984). 6.10.08E Resolution -f disputes. The city manager is authorized and -empowere -,to ct to a -just, settle or compromise any controversy arising:from e operations of any -grantee under this chapter or relating ovthe construction or -applica- tion of any of the .terms 'of this hater, either on behalf of the city,` or any subscriber,; in- �'. Est Merest of the public. The city manager shall provide the`: antes.-" parties; with; notice.; and. and all .priorested renderin ru * --- r" .to . be,beard -prior to g ai decision <under this chapte No formal proceedings or., rules o`f , evidence are required by thi - section. , Thecity ;. manager may appointu''a hearing officer to a.t in his place and to exercise hisauthority.,under this chapte Either: the grantee, or, any' member. of then public whoNmay dissatisfied with, the decision .of, the city:, manager, may,trap• 1 the,matter tothe city "council. The council may accept, re ct or modify the decision of, the city manager, and the council settle or compromise anyy adjust, opera- tions of any grantee orfrom tthe eappplication ofoany 'p sions of this chapter. The grantee shall be notified in writg of the decision of the city council within ten days of the c: s -n• Ord. 1816 t-art), 1984). 6.10.086 Penalties for violations. The city may, at its sole option and in aadition to any other remedies legally available, subject to the provisions of subsection D of this section, apply any or all of the following penalties for a material breach of the provisions of this chapter or any fran- chise ordinance under this chapter: A. Penalties for Delays in Required System Construction or Rebuild Activity. . - 1. Reduction in the duration of the franchise on a month -to -month basis for each month of delay exceeding six months; 70h-lj (National City 6/84) 2. Forefeiture of performance bonds; 3. Revocation of the franchise pursuant to the pro- visions of Section 6.10.260. B. Penalties for Material Breaches other than Construc- tion Delays. 1. Imposition of a financial penalty not to exceed one thousand dollars per day for grantee's individual wilful and/or repeated violation or failure to take corrective action with respect to a violation; 2. Imposition of a requirement that the grantee make rebates or payment to subscribers or classes of subscribers in such amount as the city may deem reasonable; 3. Imposition of a requirement that the grantee correct or otherwise remedy the violation prior to any pending rate increase becoming effective; 4. Revocation of the franchise pursuant to the pro- visions- of Section 6.10.260. C. Determination of Appropriate Penalty. In determining which remedy or remedies are appropriate for the grantee's violation, the city shall take into account the nature of the violation, the person or persons bearing the impact. of the violation, the nature of the remedy required in order to pre- vent further such violations,the-actual cost;of damage associ- ated with the violation and other such matters -as the city may deem appropriate. 'The city, in :determining any penalty, shall make written.findingsof-;fact which,address the considerations listed.in„this„section >> _, D. „°-Hearin and Ap peal ppeal Procedure. In making determina- tions relative to violations under this chapter, the city shall afford the;;grantee due,process of law in accordance with the hearih96,endaPPeal procedures established in Section 6.10,085. (Ord.,1816 (Part), 1984) 6.10.090 ;Permits, -installation and service. A. Within thi :days -after acceptance of any franchise under this chap- ter, rantee shall proceed with due diligence to obtain all necess- permits and authorizations which are required in the conduct its business including, but not limited to, any utility joint attachment agreements, carrier licenses, and any other permits, censes, and authorizations to be granted by duly constitute, egulatory agencies having juris- diction over the operation of systems or their associated transmission facilities. B. Within ninety days after obt -'ng all necessary per- mits,*licenses and authorizations, the gr- ee shall commence construction and installation of the CATV sys in accordance with an installation schedule approved by the ci c�ouncil. C. Within one hundred eighty days after the coil ncement of construction and installation of the system, the gran 70h-lk (National City 6/84) of such street or property or area has first been obtained pursuant to the provisions of this chapter and unless such franchise is in full force and effect. (Ord. 1816 (part), 1984). 6.10.260 Revocation of franchise. A. The city reserves the right to revoke any franchise granted under this chapter and to rescind all rights and privileges associated with the franchise in the following circumstances, each of which shall represent a default and breach under this chapter and the franchise grant: 1. If the grantee should default in the performance of any of its material obligations under this chapter or under such documents, contracts and other terzs and provisions entered into by and between the city and the grantee; 2. If the grantee should fail to provide or maintain in full force and effect, the liability and indemnification coverages or the performance bond as required in this chapter; 3. If any court of competent jurisdiction, the FCC or any state regulatory body by rules, decisions, or other action determines that any material provision of the, franchise documents, including this chapter, is invalid or unenforceable prior to the commencementof system construction; 4. If the grantee should frequently violate any orders or rulings of any regulatory body..hay.ng jurisdiction over the grantee' relative'to:this franchise., unless such orders or rulings are being contested by the "* � grantee; 5. If the grantee ceases to provide services for any 'reason within the control of the granteeover the CATV system. The grantee shall not, however, be declaredat fault Or be subject to any sanction under any "provision of this chapter in any case in which performance of any such provision is pre- vented for reasons demonstrated to be beyond the grantee's control. A fault shall not be deemed to be beyond the grantee's control if committed by a corporation or other business entity in which the grantee holds a controlling interest, whether held directly or indirectly; 6. If the grantee attempts to evade any of the provi- sions of this chapter or the franchise agreement or practices any fraud or deceit upon the city; 7. If the grantee's construction schedule is delayed for more than eighteen months later than any schedule contained rin the grantee's franchise agreement, including any extensions theret,f ; 8. If the grantee becomes insolvent, unable or unwill- ing to pay its debts, or is adjudged a bankrupt. 8. The city may make a written demand that the grantee comply with any such requirement, limitation, term, condition, rule or regulatory or correct any action deemed cause for 70h-lw (National City 6/84)