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HomeMy WebLinkAboutORD 0970 (1986)1 ORDINANCE NO. 970 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING THE FRANCHISE FOR 3 A CABLE TELEVISION SYSTEM GRANTED TO COMMUNITY CABLEVISION COMPANY 4 5 The City Council of the City of Tustin, California, hereby ordains as follows: 6 WHEREAS, Ordinance No. 597 adopted by the City Council of 7 the City of Tustin on August 20, 1973, granted a non-exclusive cable television franchise to Community Cablevision Company 8 (hereinafter "Community Cablevision" or "Franchisee"), a wholly- owned subsidiary of The Irvine Company, a Michigan corporation; and 9 WHEREAS, the City Council wishes to grant a cable television 10 franchise in that area of the City described in Exhibit "A" hereto (hereinafter the "East Tustin Area"); and 11 WHEREAS, pursuant to the provisions of Tustin City Code 12 Section 7415(c)(3), the City Council has determined, based on quality of service proposed, experience, character, background and 13 financial responsibility, its management and owners, technical and performance quality of equipment, and other considerations, that 14 the franchise for the East Tustin Area be granted to Community Cablevision Company in accordance with the terms provided for 15 herein; and 16 WHEREAS, the City of Tustin and Franchisee agree that it is in their mutual best interests to incorporate the existing 17 franchise granted to Community Cablevision with the franchise herein granted for the East Tustin Area. 18 1. Authority for Franchise. This Agreement is enacted 19 pursuant to the authority~ provided in, and all of the provisions, terms and conditions of Article 7, Chapter 4 of the Tustin City 20 Code, Sections 7410 et ~eq. 21 2. ~rant ..Qf Franchise. Pursuant to the provisions of Article 7, Chapter 4 of the Tustin City Code, the City Council of 22 the City of Tustin hereby grants a non-exclusive franchise ("Franchise") to Franchisee to construct, operate and maintain a 23 cable television system within those portions of the incorporated limits of the City of Tustin (sometimes referred to herein as 24 "City") described in said Ordinance No. 597 and described in Exhibit "A" hereto, subject to the terms and conditions of (a) said 25 Article 7, Chapter 4; and (b) the terms and conditions provided herein. As of the effective date hereof, this Franchise shall 26 supersede and cancel in its entirety the existing Franchise granted pursuant to said Ordinance No. 597, it being the intent of the 27 parties that the parties' agreements respecting cable television service to the City of Tustin be merged and consolidated in this 28 Franchise. 1 1 3. ...Term of Franchise. The term of this Franchise shall be 2 for a period of fifteen (15) years, commencing on the effective date of this Ordinance, as provided in Section 31 hereof, subject 3 to termination of the Franchise granted by this Ordinance as hereinafter provided. 4 4. .Assignment or Transfer of Franchise. The Franchise 5 granted herein shall be a privilege to be held in' personal trust by Community Cablevision. It cannot, in any event, be sold, 6 transferred, leased, assigned or disposed of in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, 7 consolidation or otherwise, without prior consent of the City Council of the City of Tustin expressed by Resolution, and then 8 only under such conditions as may therein be prescribed. Any such transfer or assignment shall be made only by an instrument in 9 writing, such as a bill of sale, or similar document, duly executed copy of which shall be filed in the Office of the City Clerk within 10 thirty (30) days after any such transfer or assignment. Any proposed assignee must show responsibility and capability as 11 determined by the City Council and must agree to comply with all provisions of the Franchise and Tustin City Code, and, provided, 12 further, that no such consent shall be required for transfer in trust, mortgage or other hypothecation, in whole or in part, to 13 secure an indebtedness. Such consent shall not be withheld unreasonably. 14 5. Rates. Franchisee shall impose rates consistent with 15 the provisions of the Cable Communications Policy Act of 1984, and pertinent provisions of the California Government Code, any 16 supplements or amendments thereto, any successor legislation, and the regulations which are or will be promulgated under such 17 legislation. 18 Franchisee shall advise City of its rates and of any changes thereto as soon as such rates or changes are established. 19 6. Definition .Qf ..GrOss Revenues. "Gross Revenues" shall 20 mean all cash, credits, property of any kind or nature or other consideration derived directly or indirectly by the Franchisee, its 21 affiliates, subsidiaries, and any other person or entity in which Franchisee has a financial interest or which has a financial 22 interest in the Franchisee, arising from or attributable to operation of the cable television system in City, as its corporate 23 city limits now, and/or hereafter may be constituted, including, but not limited to: 24 a. Revenue from the subscriber network and 25 institutional network (including Leased Access fees paid to the Franchisee by the lessee of 26 channel space). 27 b. Adv er ti sing r ev enue s. 28 c. Revenue from the use of studio facilities, 1 production equipment and personnel. 2 d. Revenue from installation, connection and reinstatement and the provision of subscriber and 3 other services. 4 e. The sale, exchange or cablecast of any programming -developed for Community Use or institutional 5 users. 6 f. Payments to Community Cablevision for allowing other cable operators to connect to the cable system that Community Cablevision operates in 7 City. 8 "Gross Revenues" shall not include: 9 a. Any taxes on services furnished by the Franchisee 10 which are imposed directly upon any subscriber or user by the United States, State of California or 11 local agency and collected by the Franchisee on behalf of the government. 12 b. Revenue received directly from the Franchisee by 13 an affiliate, subsidiary or parent of the Franchisee or any other person or entity in which 14 the Franchisee has a financial interest or which has a financial interest in the Franchisee, when 15 the revenue received has already-been included and reported Gross Revenue as received by the 16 Franchi see. 17 7. Franchise Fees. For the use of the City streets and for the purposes of providing revenue with which to defray the cost 18 of regulation arising out of issuance of the Franchise and promoting, assisting and financing Community Use Programming and 19 other cable services of a public character, Franchisee shall pay franchise fees to City of five percent (5%) ~of Gross Revenues. 20 The streets and other public rights-of-way to be used by 21 Franchisee in the operation of its system within the boundaries of the City are valuable public properties acquired and maintained by 22 the City at great expense to its taxpayers, and the grant to the Franchisee of consent to use such streets and other public rights- 23 of-way is a valuable property right without which the Franchisee would be required to invest substantial additional capital. 24 Furthermore, the City will incur costs in administering the Franchise in the public interest. Thus, in consideration of the 25 granting and exercising of a Franchise to use the streets and other public rights-of-way as herein defined, for the operation of a 26 cable television system, and to reimburse City for costs incurred in administering this Franchise granted pursuant to this Ordinance, 27 the Franchisee shall pay the City the fees provided in this 0 r di na nce. 28 1 Said fees shall be paid quarterly not later than June 1, September 1, December 1 and March 1 for the preceding three (3) 2 month period ending, respectively, March 31, June 30, September 30 and December 31. Not later than March 1, the Franchisee shall file 3 with the City Clerk of the City of Tustin an annual audit report by a Certified Public Accountant approved by City, of the operations 4 of Franchisee which identifies in detail the sources and amounts of all Gross Revenues received by the Franchisee from all sources, 5 both inside and outside City. On the date of payment other than March 1, Franchisee shall file an unaudited report which identifies 6 all Gross Revenues during the period for which payment is made. 7 It is the intent of the City to utilize substantial amounts or all of the franchise fees imposed hereunder to defray 8 the cost of local administration of the Franchise, to support the development and maximum utilization of all community service and 9 government access channels and to generally encourage development and use of the cable system to full utilization of its potential. 10 No acceptance of any payment shall be construed as an 11 accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any 12 claim which the City may have for further additional sums payable under the provisions of the Franchise. 13 8. Reimbursement of City .EXpenses. The Franchisee shall 14 pay to City an amount equal to the legal expenses incurred by the City in preparing, revising, negotiating and enacting this 15 Ordinance and matters directly related thereto. The City shall prepare a statement aggregating such cost and send such statement 16 to the Franchisee. In no event, however, shall such aggregate amount exceed One Thousand Five Hundred Dollars ($1,500.00). The 17 Franchisee shall pay the amount of such statement to the City within thirty (30) days thereafter. The purpose of this Section is 18 to reimburse City for the expenses incurred by City in preparing and enacting this Ordinance. 19 9. Future Laws. City does not have or expect in the 20 foreseeable future to receive sufficient funds with which to defray the costs of administering and regulating the cable television 21 franchise within the City. The ability to finance such costs through franchise fees, pursuant to the provisions of Section 7 22 above, constitutes a material inducement to initiate a cable television program within the East Tustin Area and to extend the 23 existing Franchise, because City would not be willing to reduce or eliminate other public programs in order to make public funds 24 available with which to defray the cost of administering and regulating the cable television program. 25 Therefore, should any future law or regulation limit or 26 prevent City from imposing a franchise fee in the amount provided for herein, the Franchisee shall make a good faith effort to obtain 27 any possible waiver or permission to pay the full amounts provided for herein, and to the extent such future law or regulation permits 28 the Franchisee discretion to make the limitation or prohibition 4 1 applicable or inapplicable, the Franchisee shall elect to make the limitation or prohibition inapplicable. If, as a result of any 2 acts of the Federal Communications Commission, the United States Congress, any state or federal court, or any other entity lawfully 3 asserting jurisdiction for the regulation of cable communication systems, any provision or provisions of this Franchise as is 4 modified, amended, revoked, redeemed, or changed to result in what constitutes, in the view of either party to this Agreement, 5 material changes in the provisions and circumstances of the Franchise, the parties shall diligently pursue, in good faith, a 6 reasonable means to preserve the intentions of the parties as expressed in this Agreement. Should the parties be unable, within 7 a reasonable time, after conducting negotiations in good faith to preserve said intentions, or, within a reasonable time, after 8 conducting negotiations in good faith, should the parties be unable to agree on modifications to the language of this Agreement, if 9 any, City may elect to treat such failure as a cause for revocation of the Franchise. 10 10. Limitation Qf .Uses. The cable television system 11 herein franchised shall be used exclusively for the purposes expressly authorized by Article 7, Chapter 4 of the Tustin City 12 Code and no other purpose whatsoever. 13 11. Establishment and ExtenSion ~ ~. Upon the effective date of this Ordinance, Franchisee shall diligently 14 proceed or continue to proceed to obtain all necessary permits and authorizations necessary to construct and operate cable television 15 service and shall forthwith proceed or continue to proceed with construction and installation of the cable television system within 16 the East Tustin Area, as specified and described in this Ordinance and Article VII, Chapter 4 of the Tustin City Code and approved by 17 the City of Tustin. The parties agree that Franchisee shall be in full compliance with this provision so long as all, or 18 substantially all, of the occupied residential units in the East Tustin Area have access to the cable television system so 19 constructed and installed by Franchisee. 20 12. Acceptance of Franchise. Within thirty (30) days after the effective date of this Ordinance, Franchisee shall file 21 with City its written, unconditional, non-contingent acceptance of the Franchise granted by this Ordinance and its agreement to be 22 bound by and comply with all the requirements hereof. The acceptance shall be signed by a person duly authorized to act on 23 behalf of the Franchisee, shall be notarized and shall have attached thereto a certified copy of an order by the Board of 24 Directors of the Franchisee authorizing and directing execution and filing of the acceptance. An acceptance which constitutes a 25 qualified acceptance or places other limits or conditions therein shall be deemed to be a nullity. Upon the failure of the 26 Franchisee to file its unconditional, non-contingent acceptance of the Franchise subject to all its terms and conditions within the 27 time period specified above, the Franchise shall be of no further force or effect and there will not be issued an outstanding cable 28 television franchise in City to any of the companies or entities 5 1 named in this Ordinance. Franchisee shall furnish and maintain all bonds and insurance policies required to be furnished pursuant to 2 the Tustin City Code and this Franchise. 3 13. Bonds. Upon the adoption of this Ordinance and the Acceptance of the Franchise by Franchisee as hereinabove provided, 4 and in addition to satisfying all other requirements of the Tustin City Code, Franchisee shall deposit in a bank or savings and loan 5 association in City the sum of One Hundred Thousand Dollars ($100,000.00) in a joint account in the names of Franchisee and 6 City or shall file with the City Clerk and maintain in full force and effect a bond, approved by the City Attorney, in an equivalent 7 amount. The passbook, certificate of deposit or surety bond shall be delivered to and held by City. The cash deposit sum, or the 8 corporate surety bond shall be maintained during the period of construction of the cable television system within City as 9 prescribed by this Ordinance. Upon full and final completion of the cable television system as prescribed in this Ordinance within 10 the times prescribed in the Franchise, City shall deliver the said passbook, certificate of deposit or surety bond to Franchisee and 11 execute any appropriate document releasing City's interest and rights therein to Franchisee. This release shall be contingent 12 upon the full and faithful performance of the Franchisee of its obligations under this Ordinance. In the event that Franchisee 13 shall fail to comply with any one or more of the provisions of the Franchise, there shall be recoverable from the aforesaid sum or 14 bond any and all damages or loss suffered by City as a result thereof, including, but not limited to, the full amount of any 15 compensation, idemnification, cost of removal of abandoned property, staff costs in attempting to secure compliance, plus a 16 reasonable allowance for attorneys' fees and costs, up to the full amount of the aforesaid deposit. Relinquishment of City's 17 interests and rights in the aforesaid deposit shall also be conditioned upon the deposit with City of a performance bond as 18 provided in the following paragraph. 19 Prior to relinquishment by City of any of its interests and rights in the deposit described in the preceding paragraph, 20 Franchisee shall file with the City Clerk and shall thereafter, annually, during the entire term of the Franchise, maintain in full 21 force and effect a corporate surety bond or other adequate surety agreement approved by the City Attorney in the amount of Fifty 22 Thousand Dollars ($50,000.00). The bond or agreement shall be so conditioned that in the event the Franchisee shall fail to comply 23 with any one or more of the provisions of the Tustin City Code or of the Franchise granted to Franchisee, then there shall be 24 recoverable jointly and severally from the principal and surety, any damages or loss, or costs suffered or incurred by the City as a 25 result thereof, including attorneys' fees and costs of any action or proceeding, and including the full amount of any compensation, 26 indemnification, costs of removal or abandonment of any property or other costs which may be in default, up to the full principal 27 amount of such bond. Said condition shall be a continuing obligation during the entire term of the Franchise and thereafter 28 until Franchisee shall have satisfied in full any and all 1 obligations to City which shall arise out of or pertain to said Fr an chi s e. 2 14. ~ommunit_v Use. 3 A. The Franchisee shall provide Community Use channels 4 and Community Use programming in order to permit the community to design, produce and present programming of local interest and 5 promote the educational, recreational and character building opportunities of the viewing public. 6 B. To meet its obligations under this Section 14, the 7 Franchisee's obligations shall include the following: 8 Franchisee shall initially provide three (3) channels for municipal, educational, public access and local 9 origination purposes to be utilized on a time-shared basis by the City and other Cities served by the cable 10 television system operated by the Franchisee. In order that the City and others may utilize the educational and 11 municipal channels, the Franchisee will provide video and such other equipment and personnel services as 12 Franchisee, in its sole discretion, deems necessary to broadcast on said channels, at Franchisee's cost. The 13 sale of commercial time on said channels is allowed' to offset Franchisee's costs of operation, and the 14 management of program scheduling, and unused channel capacity shall be the responsibility of Franchisee; 15 provided, however, that neither such sale nor such management shall unduly limit City's use of such 16 channel s. 17 Use of these channels will be governed by the rules established in the community access programming and 18 production guide (Exhibit "B"), which are subject to change at the sole discretion of Community Cablevision. 19 15. Level of ..Service. Franchisee shall use its best 20 efforts to maintain, operate, and, where feasible, modify the CATV System towards the goal that its performance will be in accordance 21 with the highest and best accepted standards of the industry. 22 16. Bi-Directiona~ Interconnect Capability. The system to be installed by Franchisee shall have bi-directional interconnect 23 capabilities within the East Tustin Area. New schools and City facilities elsewhere in Franchisee's service area within City shall 24 be interconnected when it is technically and financially feasible to do so at no cost to City, so long as said schools and facilities 25 are within fifty (50) feet of an existing access point. All equipment and staff required to access the system from the 26 facilities will not be the responsibility of Community Cablevision. 27 17. Subscriber .Service a~d Complaint .procedures. The Franchisee will maintain sufficient service personnel and equipment 28 for the Franchisee to be able to take action upon customer service 1 calls in the manner specified herein. Franchisee's service office shall be open to receive inquiries or complaints for subscribers 2 during normal business hours, and in no case less than 9:00 a.m. to 5:00 p.m., Monday to Friday, excluding legal holidays, and shall 3 have local, non-toll telephone service for subscribers in the Franchise area during such times; provided, however, that such 4 hours may be lessened upon the prior written consent of the City Manager provided that local, non-toll telephone service continues 5 to be available during such times. 6 The Franchisee shall maintain a service repair force sufficient to respond within a reasonable time to any individual 7 interruption of service and also a sufficient installation force to minimize the delay for service installation. Any service complaint 8 from subscribers will be investigated and acted upon as soon as possible. 9 The Franchisee shall provide a telephone answering system to 10 receive all construction and service complaints. The telephone number of the local office shall be listed in the telephone 11 directories serving Tustin. The telephone service shall be operable to accept complaints twenty-four (24) hours a day, seven 12 (7) days a week. 13 The Franchisee shall keep a maintenance service log a running three (3) year period, which will indicate the nature of 14 each service complaint, its location, the date and time it was received, the disposition of said complaint, and the time and date 15 thereof. This log shall be made available for periodic inspection by the City. 16 18. Number of Channels. The cable television system to be 17 constructed in the East Tustin Area pursuant to the Franchise granted herein shall consist of a one (1) cable subscriber network 18 with a capacity of not less than fifty-two (52) channels. Franchisee shall maintain a capacity of not less than 35 channels 19 within the remaining portion of this Franchise. 20 19. Remedies. At the time of issuance of this Franchise, it is impractical to reasonably ascertain the total extent of 21 monetary damages which may be incurred as a result of the breach by Franchisee of its obligations under the Franchise. 22 Without the provisions of this Section, the actual monetary 23 damages for which the Franchisee would' be liable, could greatly exceed the specified amount of liquidated damages. Therefore, the 24 parties have agreed, after good faith negotiations, to fix the amount of liquidated damages, in lieu of any other monetary damages 25 recoverable by the City of Tustin, as provided in this Paragraph 19. 26 If the Franchisee is in material default under the terms of 27 the Franchise, the City shall give written notice of such default to the Franchisee. The Franchisee shall have fourteen (14) days 28 from receipt of such notice to cure the default or to agree in 1 writing with the City upon a method and time that such default shall be cured. If the default is not cured within fourteen (14) 2 days from the receipt of the notice, or, if such default is of a nature that reasonably requires longer than fourteen (14) days to 3 cure, within such other reasonable time as is reasonably agreed to between the parties, the City Council of the City of Tustin may 4 assess the Franchisee and the Franchisee shall be liable for liquidated damages in the sum 'of Five Hundred Dollars ($500.00) for 5 each calendar day on which the Franchisee is in' such default, from and after the date Franchisee fails to cure the default. 6 Notwithstanding anything to the contrary herein provided, such liquidated damages shall in no event exceed the sum of Fifty 7 Thousand Dollars ($50,000.00) in the aggregate. Said liquidated damage sum shall be severally applicable to each calendar day of 8 delay in compliance with the provisions of construction and separately applicable for each calendar day of delay complying with 9 any other provisions of the Franchise. 10 20. Alternate ..Remedies. Neither a termination of the Franchise nor liquidated damages shall be deemed to be the 11 exclusive remedy for breach of the Franchise. Neither the right to assess liquidated damages nor the assessment of liquidated damages 12 shall be deemed to bar or otherwise limit the right of the City of Tustin to obtain judicial enforcement of the Franchisee's 13 obligations by means at law or in equity. Notwithstanding the foregoing, the City of Tustin shall be precluded from obtaining a 14 judgment for monetary damages against Franchisee other than in the liquidated damages amount provided for in Paragraph 19 hereof. 15 21. Completion Qf Construction. The cable television 16 system constructed pursuant to this Ordinance shall be fully and completely constructed as to each residential unit within the area 17 of service provided for in this Franchise no later than ninety (90) days after occupancy of such residential unit, or such later date 18 as the City Council may by Resolution approve. 19 22. Termination .Q.f FranchiSe for ~ause. The following material breaches of the obligations of the Franchisee under the 20 Franchise shall constitute grounds for termination of the Franchise by the City Council of the City of Tustin: 21 a. The willful failure to make any payments required 22 under the Franchise and/or to provide City with required information in a timely manner as 23 provided in the Franchise from and after ten (10) days' written notice from the City of Tustin. 24 b. Any other act or omission by the Franchisee which 25 materially violates the terms, conditions or requirements of the Franchise or any order, 26 directive, rule or regulation issued thereunder and which is not cured within thirty (30) calendar 27 days following mailing to the Franchisee written notice of the violation or within such period 28 beyond the thirty (30) calendar days as is 9 1 reasonable. 2 c. Should the Franchise be terminated under the provisions of this Section 22, any resulting 3 transfer of ownership shall be conditional upon payment of an equitable price for the Franchise 4 to Franchisee for the Franchise, as set forth in Section 627 of the Cable Communications Act of 5 1984. 6 23. Termination .for Non-Renewal. If renewal of the Franchise is denied under the provisions of this Agreement, or if 7 termination results from the operation of Paragraph 9 hereof, and the City acquires ownership of the cable system or effects a 8 transfer of ownership to another party, any such acquisition or transfer of ownership shall be conditional upon payment of the fair 9 market value of the Franchise, as set forth in Section 627 of the Cable Communications Policy Act of 1984. 10 24. Limited Recourse. Franchisee shall have no recourse 11 whatsoever against officers, agents or employees of City Tustin for any loss, cost, expense or damage arising out of or resulting from 12 actions, or omissions to act, undertaken by such officers, agents or employees in good faith based upon the provisions of the 13 Franchise, including without limitation, the promulgation by such officers, agents or employees of rules, regulations, requirements 14 or directives in furtherance of the provisions of this Franchise. 15 25. Non-Enforcement. The Franchisee shall not be relieved of any obligation to comply with any of the provisions of the 16 Franchise or any rule, regulation, requirement or directive promulgated thereunder by reason of any failure of City or its 17 officers, agents or employees to enforce prompt compliance. 18 26. FranchiSe as Contract. The Franchise shall be deemed to constitute a contract between the Franchisee and City. The 19 Franchisee shall be deemed to have contractually committed itself to comply with the terms, conditions and provisions of the 20 Franchise, and with all rules, orders, regulations and determinations applicable to the Franchise which are issued, 21 promulgated or made pursuant to the provisions of this Franchise. The Franchise shall not be construed to constitute a contract of 22 adhension. 23 All terms, conditions and provisions of the contract shall be deemed to be embodied in the Franchise, and conflicts in terms, 24 conditions or provisions of the Franchise shall be resolved as follows: 25 a. The express terms of this Franchise shall prevail 26 over conflicting or inconsistent provisions in Article 7, Chapter 4 of the Tustin City Code; 27 b. The express terms of this Franchise shall prevail 28 over conflicting or inconsistent provisions in 10 1 either the application for the Franchise, if any, or the certificate of acceptance of the Franchise. 2 27. Utility PoLes. This Franchise shall not be deemed to 3 expressly or impliedly authorize the Franchisee to utilize poles owned by the Southern California Edison Company, Pacific Bell or 4 any other public or private utility which are located within the streets, without the express consent of such utility. 5 28. Indemnification: ~ InSUranCe. In accordance 6 with the provisions of California Public Utilities Code Section 6296, Franchisee agrees to and shall hold ~City and its officers, 7 employees, agents and representatives free and harmless and shall indemnify and defend them against and from any and all claims, 8 demands, costs, liability to other kind or nature whatsoever arising out of or from the Franchise, any extension of any time 9 limits contained in the Franchise, the failure to extend any time limit in the Franchise, out of the construction, operation, 10 maintenance, program content, royalties or removal or abandonment of the CATV System by Franchisee. 11 Franchisee shall procure, and thereafter during the life of 12 the Franchise, shall maintain in full force and effect at Franchisee's sole cost and expense, general comprehensive liability 13 insurance in an amount not less than One Million Dollars ($1,000,000.00) for injuries, including accidental-death, to two 14 (2) or more persons; and in an amount not less than Five Hundred Thousand Dollars ($500,000.00) for injuries, including accidental 15 death to any person; and property damage liability insurance in an amount not less than Five Hundred Thousand Dollars ($500,000.00) 16 resulting from any one (1) occurren'ce, and City shall be named as an additional named insured in said insurance policy, with coverages 17 to be included in the public liability and property damage policies of broad form contractual and broad form property damage with the 18 further provision that said policies shall contain a provision that written notice of cancellation or material alteration of said 19 policies shall be delivered to City sixty (60) days in advance of the effective date of any such cancellation or material alteration. 20 During the period of construction, and at all times 21 thereafter, Franchisee shall keep all improvements installed by it insured against loss or damage by fire, with extended coverage 22 endorsement or its equivalent in amounts not less than ninety percent (90%) of the insurable value of the buildings, equipment 23 and other improvements insured, with loss payable to Franchisee, any lenders of Franchisee which may have a security interest in the 24 property comprised of the cable television system and City, in accordance with their respective interests therein. 25 29. Severability. The provisions of Section 1115 of the 26 Tustin City Code shall not be applicable to the provisions of the Franchise. 27 30. Renewal. This Agreement may be renewed for an 28 additional period not to exceed fifteen (15) years if Franchisee 11 1 has substantially complied with its obligation under this Agreement and upon the mutual agreement of the parties. Upon the request of 2 either party, the renewal process outlined in Section 626 of the Cable Communications Act of 1984 shall be invoked. 3 31. Force Majeure. Any time limits provided for either 4 party's performance hereunder shall be extended for and throughout such additional period of time as such performance is prevented or 5 delayed due to strikes, lockouts, acts of government beyond the party's reasonable control, acts of God, wars, riots, insurrection 6 or abnormal force of elements or other causes beyond the party's reasonable control; provided, however, that in no event shall any 7 such extension be deemed to have occurred unless (a) the party whose performance is delayed shall have given prompt notice to the 8 other party of the occurrence of the event of delay; and (b) the applicable period or periods of time within which such other party 9 may exercise its rights hereunder shall be commensurately extended. 10 32. Effective .Date of Ordinance. This Ordinance shall become effective thirty (30) days after its passage. 11 PASSED AND ADOPTED at a regular meeting of the City Council 12 of the City of Tustin, California, held on the 2nd day of June , 1986. ATTEST: 16 .... 18 19 20 JGR:LSL :pj (15) 21 0 3/14/86 03/20/86 22 23 24 25 26 27 28 12 EXHIBIT "A" STATE OF CALIFORNIA ) COUNTY OF ORANGE ) § CITY OF TUSTIN ) 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 five; that the above and foregoing Ordinance No. 970 was duly and regularly introduced and read at a regular meeting of the City Council held on the 19th day of MaN, 1986, and was given its second reading and duly passed and adopted at a regular meeting held on the 2rid day of June, 1986, by the following vote: AYES : COUNCILPERSONS: Edgar, Hoesterey, Kelly, Kennedy, Saltarelli NOES : COUNCILPERSONS: None ABSENT: COUNCILPERSONS: None City of Tustin, California Published Ordinance: May 29, 1986 June 12, 1986