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HomeMy WebLinkAboutORD 1002 (1988) ORDINANCE NO. 1002 t AN ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING THE 2 FRANCHISE FOR A CABLE TELEVISION SYSTEM GRANTED TO CONTINENTAL CABLEViSION, INC., A CORPORATION 4 The City Council of the City of Tustin, California, hereby ordains as follows: 5 WHEREAS, Ordinance No. 905 adopted by the City 6 Council of the City of Tustin on March 19, 1984, granted a non-exclusive cabIe television franchise ("Franchise") to 7 Communicom of Tustin, a California corporation; and 8 WHEREAS, Resolution No. 87-79 adopted by the'City Council of the City of Tustin on July 6, 1987, approved the 9 transfer of the Franchise to American Cablesystems of California~ Inc., a California corporation ("American"); and 10' WHEREAS, American has requested approval to merge it with Continental Cablevision, Inc., a corporation and the City Council of the City of Tustin has determined that it is 12 als6 appropriate to amend various provisions-of the Franchise. 13 The City Council of the City of Tustin DOES ORDAIN AS 14 FOLLOWS: 15 1. Authorit~.forFranchis.e. This amendment 'to the non-exclusive franchise for a Cable television system is .16 'enacted pursuant to the authority provided'in, and subject to all of the provisions, terms"and conditions of Article 7, 17 Chapter 4 of the Tustin City Code, Sections 7410,'at seq. !8 2. Grant of Franchise. Pursuant to the provisions of Article 7, Chapter 4 of the Tustin City Code,~the City 19 Council of the City of Tustin hereby grants a non-exclusive Franchise to construct, operate and maintain a cable 20 television system within those portions'of the incorporated limits of the City of Tustin in which there is no exclusive 21 Franchise in effect, to American' as merged with Continental Cablevision, Inc., a corporation, with all the rights and 22 privileges and subject to all of the terms and conditions of (a) sai'd Article 7, Chapter 4, and (b) to the extent 23 .consistent.with the terms and conditions of this Ordinance, Franchisee's Application entitled Request For Franchise 24 Transfer From Communicom To American., dated March 24, 1987, and all supplements and amendments thereto accepted and 25 approVed by the City of Tustin, and (c) the terms and conditions provided herein. As of the effective date 26 hereof, this Franchise shall supercede and cancel in its entirety the existing Franchise granted pursuant to 27 Ordinance Nos. 792 and 905, as amended, it being the intent of the parties that the parties' agreements respecting cable television service to the City of. Tustin be merged and ! consolidated in.this Franchise. 2 Each, every and all of the conditions,. requirements, limitations ahd obligateions upon Franchisee as set forth in 3 the Tustin City Code are hereby made a part of the Franchise granted herein. 3. Consent to Transfer. Pursuant to the provisions 5 of Article 7, Chapter 4 of the Tustin City Code, and Ordinance No. 905, the City of Tustin hereby approves the 6 merger with Continental Cablevision, Inc., a corporation, and the transfer of the ownership of a non-exclusive 7 franchise heretofore granted to American to. American after its merger with Continental Cablevision, Inc. to construct, 8 operate, and maintain a cable television system within the City of Tustin, together with all the rights and privileges 9 and subject to all of the te~ms and conditions of (a) said Article 7, Chapter 4, as amended; and (b) to the. terms and 10 conditions provided herein (excluding any reference to Franchisee's proposal dated September 28, 1978). The 11 transfer American as merged with Continental Cablevision shall become effective at such time as (1) Continental shall 12 notify the City of Tustin, in writing, that it has merged with Continental and (2)'American shall have filed with the 13 City of Tustin its written acceptance of the terms a~d conditions of the Franchise, in accordance with the 14 provisions of Section 13 hereof. 15 4. Te~ of Franchise. The ~erm of this Franchise shall be for the period commencing-on the effective date of 16 this Ordinance as provided in Section 31 hereof, and terminating on July 6, 2002, subject to termination of the 17 Franchise granted by this Ordinance as hereinafter provided. 18 5. Assignment or Transfer of Franchise. The Franchise granted herein shall be a privilege to be held in 19 personal trust by American, a corporation. It cannot in any event be sold, transferred, leased, assigned or disposed of 20 in whole or in ~art, either by forced or involuntary sale, or by voluntary sale, merger, consolidation or otherwise, 21 without prior consent of the City Council of the City of Tustin expressed by Resolution, and then only under such 22 conditions as may therein be prescribed. Any such transfer or assignment shall be made only by an instrument in 23 writing, such as a bill of sale, or similar document, duly executed copy of which shall be filed in the Office of the 2~ City Clerk within thirty (30) days after any such transfer or assignment. Any proposed assignee must show 25 responsibility and capability as determined by the City Council and must agree to comply with all provisions of the 26 Franchise and Tustin City Code, and, provided further, that no such consent shall be required for transfer in trust, 27 mortgage or other hypothecation, in whole or in part, to 1 secure an indebtedness- Such consent shall not be withheld unreasonablY- 6, Rates. Franchisee shall only impose rates 3 consistent with the provisions df the Cable Communications Policy Act of 1984, and pertinent provisions of the 4 California Government Code, and any supplements or amendments thereto, any successor legislation, and the 5 regulations which are or will be promulgated under such legislation. Franchisee agrees to provide written notice to 6 City and subscribers not less than sixty (60) days prior to said proposed rate increase. Further, City reserves the 7 right to impose or regulate rates if~ as a result of any acts of the Federal Communications Commission, the United 8 States Congress, any state or federal court, or any other entity lawfully asserting 3urisdiction for the regulation of 9 cable communications systems, such authority is granted to 10 7. Definition of Gross Revenues. "Gross Revenues" 11 shall mean all cash, credits~ property of any kind or nature or other consideration derived directly or indirectly by the 12 Franchisee, its affiliates, subsidiaries, and any other person or entity in which Franchisee has a financial 13 interest or which has a financial interest in the Franchisee, arising from or attributable to operation of the !4 cable television .s~stem in the City of Tustin, as its corporate city l~mits now ~nd/or hereafter may be 15 constituted, including, bu~ not limited to: 16 A. Revenue from the subscriber network and institutional network (including Leased Access fees); 17 B. Advertising revenues; t8 C. Revenue from the use of studio facilities, 19 production equipment and personnel; 20 D. Revenue from installation, connection and reinstatement and the provision of subscriber and other 2! services; 22 E. The sale, exchange or cablecast of any programming d~v&loped for Community Use or institutional 23 users; 24 F. Interconnection revenues. 25 "Gross Revenues" shall not include: 26 A. Any taxes on services furnished by the Franchisee which are imposed directly upon any subscriber or 27 user by the United States,. State of California or local 28 3 agency and collected by the Franchisee on behalf of the ! government; 2 B. Revenue received directly from the Franchisee by an affiliate, subsidiary or parent of the Franchisee or any 3 Other person or entity in which the Franchisee has a financial interest or which has a financial interest in the 4 Franchisee, when the revenue received has already been included and reported as Gross Revenues received by the 5 Franchisee. 6 8. Franchise Fees. For the use of the' City'streets and for the purposes of providing revenue with which to 7 defray the cost of regulation arising out of issuance of the Franchise and promoting, assisting and financing Community 8 Use Programming and other cable services of a public character, Franchisee shall pay franchise fees to the City 9 of Tustin in the amount of five percent (5%) of Gross 10i! Revenues. The streets and other public rights-of-way to be used !1 by Franchisee in the operation of its system within the boundaries of the City of Tustin are valuable public 12 properties acquired and maintained by the City at great expense to its taxpayers, and the grant to the Franchise of 13 consent to use such streets and other public rights-of-way is a valuable property right without which the Franchisee f4 would'be required to invest substantial additional capital. Furthermore, the City will incur costs in administering the 15 Franchise in the public interest. ~ Thus, in consideration of the granting and exercise of a Franchise to use the streets 16 and other public ri'ghts-of-way as herein defined, for the operation of a cable teIevision system, and to reimburse 17 City for costs incurred in administering this Franchise granted pursuant to this Ordinance, the Franchisee shall pay 18 the City the fees provided in this Ordinance. 19 Said franchise fees shall be paid quarterly not later than June 1, September 1, December 1 and March 1 for the 20 preceding three (3) month period ending, respectively, March 31,-June 30, September 30 and December 31. Not later than 21 March 1, the Franchisee shall file with the City Clerk of the City of Tustin an annual audit report by a Certified 22 Public Accountant approved by City, of the operations of Franchisee which identifies in detail the sources and 23 amounts of all Gross Revenues received by the Franchisee from all sources, both inside and outside City. On the date 24 of payment other than March 1, Franchisee shall file an unaudited report which identifies arl Gross Revenues during 25 the period for which payment is made. 26 No acceptance of any payment shall be construed as an accord that the amount paid is, in fact, the correct amount, 27 nor shall such acceptance of payment be construed as a release of any claim which the City' of Tustin may have for 4 further additional sums payable under the provisions of the. 1 Franchise. 2 9. Reimbursement of Cit~ Expenses. The Franchisee shall pay to the City of Tustin an amount equal to the legal 3 expenses incurred by the City in preparing, revising, negotiating and enacting this Ordinance and matters directly 4 related thereto. The City shall prepare a statement aggregating such cost and send such statement to the 5 Franchisee. The Franchisee shall pay the amount of such statement to the City within thirty (30) days after receipt 6' of such statement. 7 The purpose of this Section is to reimburse City for the expenses incurred by the City of Tustin in preparing and 8 enacting this Ordinance. 9 10. Future Laws. The City of Tustin does not have or expect in the foreseeable future to receive sufficient 10 funds with which to defray the. costs of administering and regulating the cable television franchise within the City. !1 The ability to finance such costs through franchise fees pursuant to the provisions of Section 7 above, constitutes a 12 material inducement to initiate a cable television program within the City of Tustin because the City of Tustin would 13 not be willing to reduce or eliminate'other public programs in order to make public funds available with which to defray 14 the cost of administering and [egulating the'.cable televi- sion program. 15 ~herefore, should any future law or regulation limit 16 or prevent the City of Tustin from impoeing a franchise fee in. the amount provided for herein, the Franchisee shall make 17 a good faith effort to obt.ain any possible waiver or permission to pay the full amounts provided for herein, and 18 to the extent such future law or regulation permits the Franchisee discretion to make the limitation or prohibition 19 applicable or inapplicable, the Franchisee shall elect to make the limitation or prohibition inapplicable. If, as a 20 result of any acts of the. Federal Communications Commission, the United States Congress or any other entity lawfully 2! asserting jurisdiction for the regulation of cable communication systems, any provision or provisions of the 22 Franchise are modified, amended, revoked, redeemed, or changed to result in what constitutes, in the view of either 23 party to this Agreement, material changes in the provisions and circumstances of the Franchise the parties shall 24 diligently pursue, in good faith, a reasonable means to preserve the intentions of the parties as expressed in this 25 Agreement. Should the parties be unable, within a reasonable time after conducting negotiations in good faith, 26 to preserve said intentions, or, within a reasonable time after conducting negotiations in good faith, should the 27 parties be unable to agree on modifications to the language of this Agreement, if any, City may elect.to treat such failure as a cause for revocation of the Franchise. 1 11. Limitation of Uses. The cable television system 2 herein franchised shall be used exclusively for the purposes expressly authorized by Article 7, Chapter 4 of 'the Tustin ~ City Code and no other purpose whatsoever. 4 12. Establishment and Extension of Service. Upon the effective date of this Ordinance, Franchisee shall 5 diligently proceed or continue to proceed to obtain all necessary permits and authorizations necessary to construct 6 and operate cable television service and shall forthwith proceed or Franchisee shall diligently proceed or continue 7 to proceed to obtain all necessary permits and authori- zations necessary to construct and operate cable television 8 service and shall forthwith proceed or continue to proceed with construction and installation of the cable television- 9 system as specified and described in this Ordinance and Article 7, Chapter 4 of the Tustin City Code and approved by 10 City of Tustin.and shall .diligently and without delay carry all construction to full completion. il 13. Acceptance of Franchise. Within thirty (30) 12 days after the effective date of this Ordinance, Franchisee shall file with the City of Tustin its written, 13 unconditional, non-contingent acceptance of the Franchise granted by this Ordinance and 'its agreement to be bound by 14 and comply with all the requirem~nts hereof. The Acceptance shall be signed by a person dul~ authorized'to act on behalf 15 of the Franchisee, shall be nota~ized and shall have attached thereto a certified copy Of an order by the Board 18 of Directors of American, authorizing and directling execution and filing of the Acceptance. An Acceptance 17 which constitutes a qualified acceptance or places other ~limits or conditions therein shall be deemed to be a 18 nullity.. Upon the failure of the. Franchisee to file .its unconditional, non-contingent AcCeptance of the Franchise 19 subject to all its terms and conditions within the time period specified above, the Franchise shall be of no further 20 force or effect and there will be not issued an outstanding cable television franchise in the City of Tustin to any of 21 the companies or entities named in this Ordinance. Franchisee shall furnish and maintain all bonds and 22 insurance policies required to be furnished pursuant to Tustin City Code and this Franchise. 14. Bonds. Upon the adoption of this Ordinance and 24 the Acceptance of the Franchise by Franchisee as hereinabove provided, and in addition to satisfying all other 25 requirements of the Tustin City Code, Franchisee shall deposit in a bank or savings and loan association in the 28 City of Tustin the sum of One Hundred Thousand Dollars (S100,000..00) in a joint account in the names of Franchisee 27 and the City of Tustin, or shall file with .the City Clerk and maintain in full force and effect a bond, approved by 28 6 the City Attorney, in an equivalent amount. The passbook, 1 certificate of deposit or surety bond shall be delivered to and held by the City of Tustin. The cash deposit sum, or 2 the corporate surety bond shall be. maintained during the period of construction of the cable television system within 3 the City of Tustin as prescribed by this Ordinance. Upon full and final completion of the cable television system as 4 prescribed in this Ordinance within the times prescribed in the Franchise, City shall deliver the said passbook, ~ certificate of deposit or surety bond to Franchisee and execute any appropriate document releasing City's interest .6 and rights therein to Franchisee. This release shall be contingent upon the full and faithful performance of the 7 Franchisee of its obligations under this Ordinance. In the event that Franchisee shall fail to comply with any one or 8 more of the provisions of the Franchise there shall be recoverable from the aforesaid sum or bond any and all 9 damages or loss suffered by City as a a result thereof, including but not limited to the full amount of any I0 compensation, indemnification, cost of removal of abandoned property, staff costs in attempting to secure compliance, 11 plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the aforesaid deposit. Re- 12 linquishmeht of City.'s interests and rights in the aforesaid deposit shall also be conditioned upon the deposit with City 13 of a performance bond as provided in the following paragraph. 14 Prior to relinquishmen% 'by ~City of any of its 15 interests and rights-in the deposit described in the preceding paragraph, Franchfsee shall file with the City 16 Clerk and shall thereafteer, annually, during the'entire term of this Franchise, maintain in full force and effect a !7 corporate surety bond or other adequate surety agreement approved by the City Attorney in the amount of Fifty 18 Thousand Dollars ($50,000.00). The bond or agreement shall be so conditioned that in the event the Franchisee shall 19 fail to comply with any one or more of the provisions of the Tustin City Code or of the Franchise granted to Franchisee, 20 then there shall be recoverable jointly and severally from the principal and surety, .any damages or loss, or costs 21 suffered or incurred by the City as result thereof, including attorneys' fees and costs of any action or 22,.proceeding, and including the full amount 'of 'any compensation, indemnfication, costs of removal or 23 abandonment of any property' or other costs which .may be in default, up to the full principal amount of such bond. Said 24 condition shall be a continuing obligation during the entire term of the Franchise and thereafter until Franchisee shall 25 have satisfied in full any and all obligations to City which shall arise out of or pertain to said Franchise. 15. Community Use. A. The Franchisee shall provide Community Use 7 Channels and .Community Use Programming in order to permit 1 the community to design, produce and present programming of local interest and promote the educational, recreational and 2 character-building opportunities of the viewing public. 3 B. To meet its obligations under this Section 14, the Franchisee's obligations shall include the following: Franchisee shall initially provide one channel 5 for municipal, educational, and public access purposes to be utilized on a time-shared basis by the City and the other 6 entities or individuals served by the cable television sys- tem 9perated by the Franchisee until such time as such one 7 channel is used full time during normal morning, afternoon, and evening viewing hours, at which time the Franchisee 8 shall provide a second such channel to be utilized on the same basis, and when that channel is also used full time, 9 the Franchisee shall provide a third such channel to be utilized on the same basis, which three channels shall be I0 the total maximum number of channels which the Franchisee shall be required to provide for such municipal, educational 11 and public access purposes. In order that the City and others may utilize the educational and municipal channels, 12 the Franchisee will provide video and such other equipment and personnel as is necessary to broadcast on said channels, 13 at Franchisee's costs. The sale of commercial time on said channels is allowed to offset Franchisee's costs of !4 operation, and the management of program sc~heduling, and unused channel capacity shall b~ the responsibility of Fran- 15 chisee; provided, however, that neither such sale nor such management shall unduly limit City'-s use of such channels. 16 The Franchisee, at its expense, shall open a studio 17 in the City for video origination, which may be located in the same location as the Franchisee's local business office. 18 The Franchisee shall keep open such studio thereafter for the remaining term of this Franchise. Franchisee shall 19 furnish the studio, at its expense, with such equipment as the Franchisee determines, but at a minimum one color 20 camera, a video recorder, adequate lighting and playback equipment. The Franchisee shall provide such reasonable 21 staff and technical services as may be necessary for the studio, which shall be available for programming for the 22 public access, educational access, and government access channel(s). Use of these channels will be governed by the 24 operating rules and procedures which are established by the Franchisee and which are subject to change, at the sole 25 discretion of the Franchisee. A copy of all such rules and procedures shall be provided to the City. 16. Level of Service. Franchisee shall use its best 27 efforts to maintain, operate and, where feasible, modify the CATV system toward the goal that its performance will be in 28 accordance with the highest and best accepted standards of 1 the industry. 2 17. Bi-Direc~ional Interconnect Capability. The system to be installed by Franchisee shall have hi- 3 directional interconnect capabilities. All public schools and City's facilities in Franchisee's service area within 4 City shall be interconnected at the request of the appropriate public agency. If such interconnection is a ~ standard installation, the Franchisee will bear the cost of installation up to 50. feet and the public agency will bear 8 any additional costs of Franchisee for the interconnection. If su=h interconnection is a non-standard installation, 7 Franchisee will bear costs of such installation in an amount equal to the amount it would bear if the installation was 8 standard and the public agency will bear any additional costs of the Franchisee for the interconnection. All 9 equipment and staff required to access the system f=cm the facilities will not be the responsibility of the Franchisee. 10 18. Subscriber Service and Complaint Procedures. 1! The Franchisee shall have a business and service office in the City to serve the TUstin cable television system. The 12 Franchisee shall also open a billing collection office in the City which may be at the same location. The Franchisee 13 will maintain sufficient service personnel and equipment in such location(s) for the Franchisee to be able to take 14 action-upon customer service calls in the manner specified herein. The local office, in~kuding the service 6ffice, 15 shall be open to receive inqU'iries or complaints for subscribers during normal business hours and in no case less 16 than 9:00 A.M. to 5:00 P.M., Monday to Friday, exclgding legal holidays; provided, however, that such hours may be 17 lessened upon the prior written consent of the City Manager provided that local, non-toll telephone service is available 18 during such time. 19 The telephone service shall transmit service interruption messages to the service repair force' within two 20 (2) hours of receipt of the original call between 8:30 'a.m. and 8:00 p.m. Monday through Friday and 8:30 a.m. until ~:00 2t p.m. Saturdays. All repair calls received after these designated transmittal times or on Sundays and legal 22 holidays shall be transmitted by 8:30 a.m. of the next work day. The Franchisee shall maintain a service repair force 24 sufficient to respond within twenty-four (24) hours Monday through Friday and within forty-eight (48) hours during a 25 weekend to any individual interruption of service and al~o a sufficient installation force to perform service 26 i'nstallations within ten (10) working days. Service problems that are correctable from the headend station shall Z7 be remedied within an eight (8) hourp~riod. 28 9 At a minimum of once per year, all subscribers will be ! notified that any inquiries regarding cable television service may be directed to the City cable coordinator with a 2 telephone number and address cited for such inquiries. 3 The Franchisee shall keep a maintenance service log for a running three year period which will indicate the G nature of each service complaint, its location, the date and time it was received, the disposition of said complaint and 5 the time and date thereof. This log shall be made available for periodic inspection by the City. 19. Number of Channels. The cable television system 7 installed pursuant to the Franchise granted herein shall consist of a one (1) cable subscriber network with a 8 capacity of not less than fifty-four (54).channels. 9 20-. Remedies. At the time of issuance of this Franchise, it is impractical to reasonably ascertain the !0 total extent of damages which may be incurred as a result of the breach by Franchisee of its obligations under the 11 Franchise. 12 Without the provisions of this Section, the actual monetary damages for which the. Franchisee would be liable, 13 could greatly exceed the specified amount of liquidated damages. Therefore, the parties have agreed, after good 14 faith negotiations, to fix the amount of liquidated damages, in lieu of any other monetarycdamages recoverable by the 15 City of Tustin, as provided in Paragraph '22. 16 21. Completion of Construction. The cable television system constructed pursuant to this ordinance !7 shall be fully and completely constructed so as to make service available in a timely manner to all occupied 18 residential dwelling units within the City of Tustin provided that the Franchisee has been able to obtain 19 reasonable access to all necessary easements and that the extension of service to such units is otherwise economically 20 and technically feasible. 21 22. Liquidated Damages. If the City believes that the Franchisee is in material default under the terms of the 22 Franchise, the City shall give written notice of such default to the Franchisee. The Franchisee shall have 23 fourteen (14) days from receipt of such notice to cure the default or to agree in writing with the City upon a method 24 and time that such default shall be cured. If the default is not cured within fourteen (14) days from the receipt of 25 the notice, or, if such default is of a nature that reasonably requires longer than fourteen (14) days to cure, 26 within such other reasonable time as is reasonably agreed to between the parties, the City Council of the City of Tustin 27 may assess the Franchisee and the Franchisee shall be liable for liquidated damages in the sum of Five Hundred Dollars 10 ($500.00) for each calendar day on which the Franchisee is 1 in such default, from and after the date FranchiSee fails to cure the default. Notwithstanding anything to the contrary 2 herein provided, such liquidated damages shall in no event exceed the sum of Fifty Thousand Dollars ($50,000.00) in the 3 aggregate. Said liquidated damage sum shall be severally applicable to each calendar day .of delay in compliance with 4 the provisions of construction and separately applicable for each calendar day of delay complying with any other 5 provision of the Franchise. 6 23. Alte~native Remedies. Neither a termination of the 'Franchise nor liquidated damages shall be deemed to be -7 the exclusive remedy for breach of the Franchise. Neither the right to assess liquidated damages nor the assessment of 8 liquidated damages shall be deemed to bar or otherwise limit the right of the City of Tustin to obtain judicial 9 enforcement of the Franchisee's obligations by means of specific performance, in3unctive relief, mandate or other I0 remedies at law or in equity. I1 24. Termination of Franchise. The following " material breaches of the obligations of the Franchisee under 12 the Franchise shall constitute grounds for termination of the Franchise by the City Council of the City of Tustin: 13 A. The willful failure to make any payments 14 required under the Franchise and/or to provide City with required information in a timel~ manner as-provided in the 15 Franchise. from and after ten (10) days written notice from the City; "- 16 B. Any other act or omission by the Franchisee 17 which materially violates the terms, conditions or requirements of the Franchise or any order, directlye, rule 18 or regulation issued thereunder and which is not corrected or remedied within thirty (30) calendar days following 19 mailing to the Franchisee written notice of the violation or within such period beyond the thirty (30) calendar days, as 20 is reasonable. 21 C. Should the Franchise be terminated out of the provisions of this Section 23, any transfer of ownership 22 shall be conditional upo~ payment of an equitable price for the Franchise to Franchisee for the Franchise, as set forth 23 in Section 627 of the Cable-Communications Act of 1984.. 24 25. Limited Recourse. Franchisee shall have no recourse whatsoever against officers, agents or employees of 25 the City of Tustin for any loss, cost, expense or damage arising out of or resulting from actions, or omissions to 26 act, undertaken by such officers, agents or employees in good faith based upon the provisions of this Franchise, 27 including, without limitation, the promulgation by such officers, agents or employees of rules, regulations, 11 requirements or directives in furtherance of the provisions I of this Franchise. '2 26. Non-Enforcement. The Franchisee shall not be relieved of any obligation to comply with any of the 3 provisions of the Franchise or any rule, regulation, requirement or directive promulgated thereunder by reaso~ of 4 any failure of the City-of Tustin or its officers, agents or employees to enforce prompt compliance. 27. Franchise as Contract. The Franchise shall be 8 deemed to constitute a .contract betwen the 'FranChisee and. the City of Tustin. The Franchisee shall be deemed to have 7 contractually committed itself to comply with the terms, conditions and provisions of the Franchise, and with all 8 rules, orders, regulations and determinations applicable to the Franchise which are issued, promulgated or made pursuant 9 to the provisions of this Franchise. The Franchise shall not be construed to constitute a contracct of adhesion. !0 All terms, conditions and provisions of the contract il shall be deemed to be embodied in the Franchise, and conflicts in terms, conditions or provisions of the 12 Franchise shall be resolved as follows: .13 A. The express terms of this Franchise shall prevail over conflicting or inconsistent provisions in 14 Article 7, c~ap~er 4 of the Tustin City code; 15 B. The express terms.of this Franchise shall prevail over conflicting or inConSistent provisions in 16 either the application for the Franchise or the certificate -of acceptance of the Franchise. 17 28. Utilit= Poles. This Franchise shall' not be 18 deemed to expressly or impliedly authorize the Franchisee to utilize poles owned by the Southern California Edison 19 Company, Pacific Bell or any other public or private utility which are located within the streets, without the express 20 consent of such utility. 21 29. Indemnification~ Liability Insurance. Franchisee agrees to and shall hold City and its officers, 22 employees., agents and representatives free, harmless and shall indemnify and defend them against and from any and all 23 claims; demands, costs, liability to other kind or nature whatsoever arising out of or from the Franchise, any 24 extension of any timelimits contained in the Franchise, the failure to extend any time limit in the Franchise, out of 25 the construction, operation, maintenance, program content, · .royalties or'removal or abandonment of the CATV system by 26 Franchisee. 27 FranchiSee shall' procure and thereafter during the life of the Franchise shall maintain in full 'force and 28 12 effect at Franchisee.'s sole cost ~and expense, general ! 'comprehensive liability insurance in an amount not less than One Million Dollars (S1,000,000.00) for injuries, including 2 accidental death, to two (2) or more persons and in an amount not less than Five Hundred Thousand Dollars 3 (SS00,000.00) for injuries, including accidental death to any person, and property damage liability insurance in an 4 amount not less' than Five Hundred Thousand Dollars ($500,000.00) resulting from any one occurrence, and City 5 shall be named as an additional named insured in said insurance policy, with coverages to be included in the 6 public liability and proper~y damage policies of broad form contractual and broad form property damage with the further 7 provision that said policies shall contain a provision that written notice of cancellation or material alteration of 8 said policies shall be deliverd to City sixty Q60) days in advance of the effective date of any such cancellation or' 9 material alteration. !0 During the period of construction, and at all times thereafter, Franchisee shall keep all improvements installed 1! by it insured against loss or damage by fire, with extended coverage endorsement or its equivalent in amounts not less 12 than'ninety percent (90%) of the insurable value of the buildings, equipment and other improvements insured, with 13 loss payable to Franchisee, .any lenders of Franchisee which may have a security' interest in the property comprised of i4 the cable television system and City, in accordance with their respective interests therein. 30. Severabilit3F. The prOviSions of Section 1115 of 16 the Tustin City COde shall not be applicable to the provisions of the Franchise. 31. Rescission of Prior Consent. The City Council 18 of the City of Tustin hereby res'cinds the consent granted by Section 32 of 'Ordinance No. 9'05 to the assignment of the 19 Franchise to United Cable of Southern California, Ltd. 20 32. Effective Date of Ordinance. This Ordinance shall become effective thirty (30) days after its passage. PASSED 'AND ADOPTED at a regular meeting of the City 22 Council of the City of Tustin, California, held on the 7th day of March. , 1988. f ..... ~:. ,x---- _ ~ - 24 Mayor .1 ATTEST: ~C~?ty Clerk JGR:se:R:02/10/88(S74.se) 27 ARW:se:R:02/12/88 28 13 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) § CITY OF TUST[N ) MARY E..WYNN, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is fi've; that the above and foregoing Ordinance No. 1002 was duly and regularly introduced and read at an adjourned regular m~etin~ the City Council held on the 16th day of February, 1988, and was given its second reading and duly passed and ao~d at a regular meeting' held on the 7tl~ day of March, 1988., by the following vote: AYES : COUNCILPERSONS: Hoesterey, Kennedy, Edgar, Kelly, Prescott NOES : COUNC ILPERSONS: None ABSENT: COUNCILPERSONS: None .ARY WY.N Cit' Cler City of Tustl n, Cal i fornl a Summary published in Tustin News: 2-25-88 3-17 -88