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HomeMy WebLinkAbout92-81 CC ResolutionRESOLUTION NO. 92-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE SURRENDER OF THE CABLE TELEVISION SYSTEM FRANCHISE HELD BY JONES INTERCABLE OF SAN DIEGO AND ESTABLISHING ADDITIONAL OBLIGATIONS REGARDING THE CABLE SYSTEM OWNED BY THE CHRONICLE PUBLISHING COMPANY WHEREAS, on April 23, 1985, the Board of Supervisors of the County of Riverside amended Ordinance 503 establishing the procedure for the issuance of licenses to construct, operate and maintain a cable television system; and WHEREAS, on October 24, 1978, the Board of Supervisors granted KACOR Realty, Inc. a non-exclusive license to construct, operate and maintain a cable television system within the unincorporated area of Riverside County known as Rancho California, as more particularly identified in Exhibit A to such license, including the area which constitutes the present territorial limits of the City of Temecula; and WHEREAS, on October 2, 1984, the Board of Supervisors granted Rancho California Cablevision Corp., as the successor-in-interest to KACOR Realty, Inc. a non-exclusive license to construct, operate and maintain a cable television system within the unincorporated area of Riverside County known as Rancho California, as more particularly identified in Exhibit A to such license, including the area which constitutes the present territorial limits of the City of Temecula; and WHEREAS, on October 29, 1985, the Board of Supervisors approved (i) a change in name of the licensec from Rancho California Cablevision Corp. to VU West Communications and (ii) an expansion of the service area within which the licensee was authorized to provide cable television service within the unincorporated area of Riverside County, as such expanded service area is more particularly identified in Exhibit A to the minutes of the Board of Supervisors as of such date providing such approval, which expanded service and includes the area which constitutes the present territorial limits of the City of Temecula; and WHEREAS, on March 8, 1988, the Board of Supervisors approved the transfer of the non-exclusive license to construct, operate and maintain a cable television system in the unincorporated area of Riverside County known as Rancho California from VII West Communications to Inland Valley Cablevision; and WHEREAS, on March 12, 1988, Inland Valley Cablevision accepted the transfer of such license from VU West Communications; and Re,os 92-81 -1- WItEREAS, Ordinance No. 503 was amended into its current form on or about November 17, 1988; and WHEREAS, on January 10, 1989, the Board of Supervisors approved the transfer of such license from Inland Valley Cablevision to The Chronicle Publishing Company ("Chronicle"), the ultimate parent and controlling owner of the Inland Valley Cablevision, and issued a new, non- exclusive license to Chronicle to construct, operate and maintain a cable television system within the unincorporated area of Riverside County known as Rancho California, as more particularly identified in Exhibit A to such license, including the area which constitutes the present territorial limits of the City of Temecula; and WHEREAS, a copy of said license (hereinafter referred to as the "License") is attached hereto as Exhibit "A"; and WHEREAS, the City of Temecula incorporated on December 1, 1989; and WHEREAS, on July 10, 1990, the City Council of the City of Temecula adopted Ordinance No. 90-12, governing cable television franchises granted by the City subsequent to the date of City incorporation on December 1, 1989; and WHEREAS, pursuant to Ordinance No. 90-12 the City and Jones Intercable of San Diego, Inc. ("Jones") entered into a Franchise Agreement dated August 13, 1991; and WItEREAS, Jones has applied to the City to surrender its franchise to the City and has notified the City that it intends transfer its assets within the City (the "Jones Temecula Assets") to Chronicle; and WHEREAS, the current economic recession and its impact on new building starts has caused Jones to apply to the City to surrender its franchise; and WIIEREAS, Exhibit "C" to the Franchise Agreement between City and Jones establishes various requirements as to access programming; and WHEREAS, the City has considered the request from Jones, and in light of Chronicle's decision to undertake certain governmental access obligations set forth in this Resolution, has found no reasonable cause to deny a consent to the franchise surrender. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ~ DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The City hereby accepts Jones' surrender of its franchise and such surrender to be effective upon the transfer of the Jones Temecula Assets to Chronicle (the "Effective Date"). The City acknowledges and agrees that as of the Effective Date, (a) Jones will have no further Rems 92-81 -2- rights, obligations or liabilities under the Franchise Agreement and Co) the City will release the letter of credit issued by NCNB Texas National Bank in favor of the City and after the Effective Date, the City will have no claims to such letter of credit. ~ection ~. (a) The following constitute the documents which, individually and collectively, represent all obligations imposed as of the date hereof upon Chronicle to operate a cable television system within the City: (1) (2) (3) The License attached hereto as Exhibit "A," which expires on January 9, 2004. County Ordinance No. 503, as amended as of November 17, 1988 and attached hereto as Exhibit "B. ~ The access obligations set forth in Exhibit "C," attached hereto. Co) Beginning from July 1, 1993, or the next subscriber fee adjustment for basic cable services in the City, whichever is earlier, the term "annual gross receipts derived from the operation of the cable system," as used at paragraph 15 of Section 6 of Ordinance 503, as amended as of November 17, 1988, and paragraph 15 of the License, shall mean any and all revenue derived directly or indirectly by Chronicle, its affiliates, subsidiaries or parents, from the operation of the cable television system in the City, including, but not limited to, monthly subscriber fees for basic cable service, pay-television fees, pay-per-view fees and related per-event revenues, installation and reconnection fees, late charges, leased channel fees, converter rentals, remote control and other equipment rentals, and advertising revenues, or any other costs of doing business which are separately assessed to subscribers as a separate line item appearing on periodic statements for services rendered (except as provided below), provided, however, that the amount of gross receipts may be reduced by the amount of any bad debts written off by Chronicle or refunds returned to persons, provided that the revenue with respect thereto had been included in the computation of annual gross receipts. Annual gross receipts excludes taxes or assessments itemized as a separate line item on subscriber statements collected by Chronicle for pass-through to a governmental agency, including without limitation franchise fees and copyright fees, utility user taxes and possessory interest taxes. Annual gross receipts shall not include any revenue derived by Chronicle which does not utilize the cable system in the City. Annual gross receipts shall also exclude payments of any nature by Chronicle to any affiliate, subsidiary, parent or any other person, provided that the amount thereof has been included in the computation of annual gross receipts when received by Chronicle to the extent otherwise deemed to be annual gross receipts in accordance with the foregoing definition. Annual gross receipts shall also exclude any revenue received from products or services provided by Chronicle under circumstances where other persons using the public rights of way offer such products or services in the City and do not pay a franchise fee, tax or other assessment to the City equal to or greater than five percent (5%) of annual gross receipts derived from such Resos 92-81 -3- products or services, provided that this exclusion shall not apply to multichannel video programming the same as or similar to the video programming provided by Chronicle as of the date hereof, whether such multichannel video programming is offered by direct broadcast satellite, multipoint multichannel distribution service, satellite master antenna television service, telephony or otherwise, where no franchise or license is required from the City for the right to offer such video programming in the City. Should such competing person pay a franchise fee to the City of less than five percent (5 %) of annual gross receipts derived from such products or services, then Chronicle shall pay a franchise fee in an identical amount with respect to the annual gross receipts it derives from such products or services, but shall continue to pay a franchise fee of five percent (5 %) with respect to all other annual gross receipts. In computing gross receipts from sources other than Chronicle's subscribers, including without limitation receipts derived from the sale of advertising or the lease of channel capacity by Chronicle on its cable system, the aggregate of the gross receipts received by Chronicle from such other sources during the period in question shall be multiplied by a fraction, the numerator which shall be the number of subscribers in the City as of the last day of such period and the denominator of which shall be the number of subscribers within all areas served by Chronicle as of the last day of such period. The results obtained thereby shall be included in the determination of the Chronicle's annual gross receipts for the purposes of computing the franchise fee due the City for such period. The City acknowledges that, prior to the date first set forth above in this section 2 (b), the determination of annual gross receipts shall be as set forth in those certain letters to the City from Chronicle dated April 15, 1991 and April 14, 1992. Notwithstanding the above, in the event that Chronicle agrees through a franchise or license amendment, modification or renewal subsequent to the date hereof with the Cities of San Jacinto, Hemet or the County of Riverside to a definition of "annual gross receipts" more favorable or less burdensome than that applicable to the City pursuant to this Resolution, such more favorable or less burdensome definition shall automatically be extended to the City. Section 3. Failure of Chronicle to comply with any material provisions of the License or its obligations under this Resolution shall be grounds for the City to invoke any of the City's remedies under the License, including, but not limited to, License termination, provided that the City shall provide Chronicle with prior written notice of Chronicle's failure to comply with any such material provisions and shall allow Chronicle a reasonable period following receipt of such notice to remedy such failure or such longer period of time as may be reasonably required therefor if Chronicle promptly commences to remedy such failure within such period and diligently completes such remedy thereafter. Section 4. Chronicle shall, within thirty (30) days of the date of this Resolution, file in the office of the City Clerk a written acceptance of this Resolution executed by Chronicle in the form of Exhibit "D," attached hereto. By executing and filing the acceptance, Chronicle Re,on 92-81 4- agrees to perform all of its obligations hereunder. The acceptance shall be notarized so as to indicate that the person executing the acceptance has the authority to bind Chronicle. Section 5. By consenting to and agreeing to accept this Resolution neither the City nor Chronicle waives any rights either may have under federal, state or local law. Section 6. By delivering a copy of this Resolution to Chronicle, the City hereby gives notice that pursuant to Revenue and Taxation Code Section 107.6, the License may create a possessory interest which, if created, may be subject to property taxation and that Chronicle may be subject to payment of property taxes levied upon such interest. Section 7. The City Manager and the City Attorney or their designees are hereby authorized and empowered to execute any documents necessary, in their discretion, to implement the approvals contained herein. PASSED, APPROVED AND ADOPTED this 27th day of October, 1992. F~a~c~ H Bir~r ATTEST: k, City Clerk [SEAL] Resos 92-81 -5- STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA ) I, June S. Greek, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 92-81 was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 27th day October, 1992, by the following vote: AYES: 5 COUNCILMEMBERS: Lindemans, Moore, Mufioz, Parks, Birdsall NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None k, City Clerk Resos 92-81 -6- "EXHIBIT A" 1 6 7 8 9 I0 !1 IS 16 17 18 19 20 21 2~ 26 27 GERALD j. G~rERLIi,~G$ COUNTY COUPSIt ~UITE 3~ 3S35 lOTH ~TREET A NON-EXCLUSIVE LICENSE OF THE COUNTY OF RIVERSIDE FOR A PERIOD OF 15 YEARS TO CONSTRUCT, OPERATE AND MAINTAIN A COMMUNITY ANTENNA TELEVISION SYSTEM ALONG. UNDER AND ACROSS SUCH PUBLIC ROADS AS NOW OR MAY HEREAFTER EXIST IN THE WINCHESTER. LAKEVIEW, NUEVO, ROMOLAND, HOMELAND, SAN JACINTO, HEMET AND IDYLLWILD AREAS OF THE COUNTY OF RIVERSIDE 1. After public hearing affording due process, and after full consideration of the licensee's legal, character, financial, technical and other qualifications, including the feasibility of its construction arrangements, a non-exclusive license is hereby granted to THE CHRONICLE PUBLISHING COMPANY, herein called "Licensee", for a period of fifteen (15) years from the date hereof to construct, operate and maintain a community antenna television system comprised of a system of antennae coaxial cable oc other transmission line and associated equipment and facilities installed, operated and maintained for the purpose of broadband communication services within the County of Riverside. including without limitation the distribution of broadcast television signals or radio signals, specialized programming or any other video. audio or data transmission to or from subscribers, along, under and across such public roads' as now or may hereafter exist within the Winchester, Lakeview, Nuevo, Romoland. Homeland, San Jacinto. Hemet and Idyllwild areas of the County of Riverside. as shown on the map attached hereto as Exhibit "A". a o "Public roads" as used in this license means any public highway, road, street. lane, alley, court, sidewalk. parkway. or easement therefor, dedicated or offered for dedication to the County of Riverside. 2. Licensee shall: Construct, install and maintain all equipment and facilities in accordance with all requirements of the County. and shall make no installation or excavation. in, on or over any road under the County's jurisdiction without first obtaining an encroachment permit under Ordinance No. 499 or any amendment or revision thereof. In any State highway, Licensee shall abide by all provisions of State laws relating to the construction, location and maintenance of such equipment and facilities. In any area of the County where existing pole lines of a public utility company are reasonably available for use by Licensee pursuant to a pole attachment agreement with the public utility company, Licensee shall not erect any poles for the purpose of installing its operating equipment. Pay to the County on demand the cost of all repairs to public property made necessary by any -1- 1 2 3 5 6 7 8 9 10 11 12 13 14 of its operations. C · Indemnify and hold the County, its officers and employees harmless from all liability [or damages resulting from all operations under this license. Remove, relocate or place underground, at its own expense, any equipment and facilities installed unde~ this license, if the County determines that it is necessary for any reason, including construc- tion of a new road, change of grade, alignment or width of any existing road, or the construction, use or maintenance of any bridge, subway, viaduct or other public work or the use of any public pro- perty, or the construction, maintenance or reloca- tion of any installation of a public utility operating under a franchise. e o Take out and maintain public liability insurance satisfactory to the County to protect Licensee and the County, its officers and employees, against loss from liability imposed by law for damages on account of bodily injury, including death, result- ing therefrom, and property damage, suffered or alleged to be suffered by any person or persons whatsoever resulting directly or indirectly from any act or omission of Licensee or any person acting under Licensee's control or direction. The insurance shall be kept in force during the term of this license in the amounts of not .less than $250,000.00 for one person injured in one accident and not less than $500,000.00 for more than one person injured in one accident, and not less than $50,000.00 property damage. Proof of insurance shall be filed with the Clerk of the Board of Supervisors. 3. In any area of the County where the transmission and distribution facilities of the public utilities providing tele- phone service and electric service are underground or hereafter may be placed underground, then Licensee shall also place or relocate all of its transmission, amplification and distribution facilities underground. 4. Licensee, in making its service available shall not discriminate for or against any suppliers of television sets, and in those areas where service is made available, Licensee shall p~ovide service to all applicants in the order of receipt of orders therefor, so far as reasonable and practical. No person, firm or corporation in the approved service area of Licensee shall be arbi- trarily refused service: provided, however, that Licensee shall not be required to provide service to any subscriber who does not pay the reasonable, applicable connection fee or monthly service charge. Licensee shall not discriminate either in favor of or against any subscriber or potential subscriber of CATV services on the basis of sex. age, race, creed, color or national origin. -2- 1 2 3 4 5 6 7 8 9 10 5. The County, State, or any city or public agency may con- struct any new road, and improve, reconstruct, repair or maiatain any existing road, or portion thereof, or other public facility in which Licensee's equipment and facilities have been constructed or installed, and may abandon or remove any such road or other public improvement. Upon thirty (30) days notice being given to Licensee of the work, and area in which it is to be performed, Licensee shall do all things necessary to protect its property during the progress of the work and if ordered by the governmental agency performing such work, Licensee shall disconnect, remove or relocate its property in such manner as shall be required to permit the performance of the work, and the maintenance, operation and use of the road or public improvement. Any private easements acquired by Licensee for the construction and installation of its equipment and facilities shall be construed to be subordinate to the rights of the County, presently existing or hereafter acquired, for future road construction or reconstruction. All of such things to be done and work to be performed shall be at the sole cost and expense of Licensee. 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 6. If the State, County, any city or public agency shall acquire the property of Licensee, either by purchase or through the right of eminent domain, this license shall not be assigned any value, before any court or other public authority, in excess of the sum paid by Licensee to the County at the time of. the appli- cation for the license. 7. Licensee may, without the approval of the Board of Supervisors, increase the rates and charges for its basic CATV service by an amount not to exceed five percent (5%) per year; provided. however, that Licensee shall have notified each sub- scriber at least thirty (30) days in advance of such proposed increase and afforded such subscriber the right to terminate its CATV service with Licensee and, provided further, that Licensee shall file each such increase in the rates and charges for its basic CATV service with the Board of Supervisors within ten (10) days after such increase takes effect. Notwithstanding the fore- going, Licensee may adjust the rates and charges for its basic CATV service without regard to the limitation contained in this paragraph if the rules and regulations of the Federal Communica- tions Commission adopted pursuant to 47 U.S.C. Section 543(b), as amended, provide that Licensee is subject to effective competi- tion. If Licensee is not determined to be subject to effective competition under such rules and regulations, Licensee shall be permitted to adjust the rates and charges for its basic CATV service as provided in such rules and regulations. Except as otherwise provided in this paragraph or applicable law, the County shall not regulate the rates and charges for basic CATV service provided by Licensee. For the purposes of this license. "basic CATV service" shall mean the service tier or tiers of Licensee's CATV system which includes the retransmission of local television broadcast signals. 8. Upon request, Licensee shall provide CATV service, wi%h- out charge, at the following locations: GERALD J GEERLiNGS C or., ~,T~' COUNSEL SUITE 3Cxg ]5]5 t0TH STREET -3- 1 2 3 5 6 7 8 9 i0 !1 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 C OL;N'r'Y COUNSEL SUITE 3430 3535 :OTH STREET RIVERSIDE CALiFORNiA a. Police and fire stations; b. Public libraries; c. Public schools; and, Other public buildings owned and controlled by the County used for public purposes and not for resi- dential use. This obligation shall be limited to (i) making one standard installation at one point reasonably convenient to use at the location in question and shall not require-the wiring of an entire building, and (ii) providing only Licensee's basic CATV service. In the event service calls or repai[s are required for any location as to which such service is rendered without charge following initial installation, Licensee shall be entitled to charge therefor in accordance with its then effective rates and charges for such service. 9. This license shall not be construed to impose upon the County any duty or obligation to construct, repair or maintain any road in which Licensee's property is located. 10. Licensee shall in good faith commence construction within four (4) months from the issuance of this license and shall diligently.proceed with the completion of the work. If significant construction has not been accomplished within one (1) year of cer- tification by the Federal Communications Commission, this license shall be forfeited. The CATV system shall be installed and main- tained in accordance with standards generally accepted in the cable television industry for similar cable television systems similarly situated, the requirements of this license and the rules and regulations of the Federal Communications Commission applicable to cable television systems. ll. All final', published rules of the Federal Communications Commission shall, to the extent applicable, be considered a part of this license on the date said final rule is adopted. This license shall, in all respects, be interpreted and applied so as to be con- sistent with the Cable Communications Policy Act of 1984, as from time to time amended (47 U.S.C. Sections 521, et seq.), applicable California law, and the rules and regulations o[ the Federal Communications Commission applicable to cable television systems. If any provision of this license or its application should be inconsistent with any of the foregoing, such Act shall prevail. 12. This license shall not be construed to require Licensee to implement a policy of construction which will require a complete wiring of the service area. However, Licensee shall be required to extend energized trunk cable from any existing terminus of the CATV system to any area immediately adjacent thereto having a density of at least forty (40) single-family residential dwelling units per cable/conduit mile; provided, however, that Licensee shall' not be obligated to service areas to which it is unable to obtain pole line facilities located in a direct route to such areas -4- 1 2 3 5 6 7 8 9 10 1! 12 13 14 15 16 17 18 and Licensee shall not be required to erect or obtain the use of pole line facilities along any indirect or circuitous route, nor is Licensee required to use underground conduit where underground conduit is not otherwise required in order to supply service to any such areas. 13.- Licensee shall establish procedures for the investiga- tion and resolution of all complaints regarding its cable televi- sion service and operations. These procedures shall include a system for reporting and resolving complaints regarding the quality of service, equipment malfunctions, billing disputes and similar matters. Licensee shall maintain an office with a toll free tele- phone number in the area to be served that will be open to receive inquiries or complaints during business hours, and in no event less than 9:00 A.M. to 5:00 P.M., Monday through Friday. Any complaints from subscribers shall be investigated and acted upon not less than three (3) business days from their receipt by Licensee; provided, however, that where unusual circumstances exist, Licensee shall have a reasonable time to respond to said complaints. Licensee shall keep records of all maintenance service. Said records will indicate the nature of each service complaint, the date and time it was received, the disposition of said complaint and the time and date thereof. These records shall be made available for periodic inspection by the County. All such records shall be kept on a calendar year basis and no records less than three (3) years old shall be destroyed by Licensee. Licensee shall, at the time the subscriber initially receives cable televi- sion service, provide each subscriber with the above information, together with the toll free telephone number of the local office which will receive all complaints, in a permanent written form which reasonably notifies the subscriber of this information. 14. All actions of Licensee pursuant to this license shall be subject to review by the Clerk of the Board of Supervisors or his designee. 19 2O 21 22 23 24 25 26 27 28 15. Licensee shall pay annually to the County five percent (5%) of its annual gross receipts derived from the operation of the cable system: however, such receipts shall not include (a) refunds made to subscribers in connection with such services to the extent that the amount of such refund has been included in the determination of annual gross receipts, (b) bad debts written off by Licensee in the usual and ordinary course of business to the extent that the amount thereof has been included in the determina- tion of annual gross receipts, (c) amounts received from subscri- bers in the nature of refundable security deposits, and (d) taxes imposed by law on the subscribers which Licensee is obligated to collect and pay to federal, state or county governments. Licensee shall file with the Clerk of the Board of Supervisors, within three (3) months after the expi[ation of each calendar year, following the issuance of this license, a verified statement showing its total annual gross receipts during the preceding year. Not more than fifteen (15) days thereafter, Licensee shall pay to the County of Riverside an amount equal to five percent (5%) of said annual gross receipts. GER/~LD ~1 G£ERLINGS COU51~ COU.N 5£ L SUITE 3~ ]535 10TI-~ STREET RIVERSIDE CALiFORF, IA -5- 1 16. This license may be terminated prior to its date of expiration by the Board of Supervisors in the event the Board 2 finds, after thirty (30) days notice of proposed termination and after a full public hearing affording due process, that (a) 3 Licensee has failed to comply with any provision of this ordinance: or (b) any provision of this ordinance has become invalid or unen- 4 forceable-and the Board of Supervisors further finds that such provision constituted a consideration material to the granting of 5 the license: or (c) the County acquires the CATV property of Licensee. Failure to comply with any of the conditions of this 6 license shall constitute cause for forfeiture hereof, in addition to all other rights held by the County. If the County forfeits ? this license, Licensee shall be excluded from any further opera- tions hereunder. If the license is forfeited by the County, or if 8 Licensee shall cease operations under the license for any reason, Licensee shall contact the Road Commissioner and perform all work 9 necessary to attain certification that any facilities installed by Licensee in the public roads pursuant to encroachment permit have 10 been removed or left in a condition that does not require removal, and that no further action is needed to protect the public !1 interest. 12 17. Licensee shall file an approved corporate surety bond in favor of the County in the penal sum of $10,000.00, conditioned 13 that Licensee shall well and truly perform every term and condition hereof and, in case of any breach of condition, the whole amount 14 of the penal sum shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and surety upon said 15 bond. The bond shall be filed with the Clerk of the Board by the original licensee within ten (10) days after issuance of this 16 license. Any subsequent holder of this license shall file a similar bond within thirty (30) days of the approval of the trans- 17 fer of this license by the Board of Supervisors. A cash deposit in the same amount may be made in lieu of said bond. This license 18 shall not be effective until Licensee has filed an approved bond. If the license is forfeited. or if Licensee shall cease operations 19' under the license for any reason, the surety bond or cash deposit shall not be released until Licensee obtains the required clearance 20 from the Road Commissioner. 21 22 23 24 25 26 27 28 18. Licensee shall not be liable or responsible for any failure or delay in the performance of any of its obligations under this license if such delay or failure arises from any cause or causes beyond the reasonable control of Licensee, including without limitation labor dispute, strikes. other labor or industrial dis- turbances. acts of God, floods, lightning, shortage of materials, rationing, utility or communication failures, earthquake casual- ties, war, acts of a public enemy, riots, insurrection. freight or other embargoes, blockages, actions, restrictions. regulations, orders or quotas imposed by any government, agency or subdivision thereof, inability to secure necessary parts or materials or any similar causes. 19. This license is not exclusive, and is issued pursuant to Section 53066 of the California Government Code. COUNT", COUNS£k SUITE 300 ~535 J0TH RIVEFI$1DF CALIFORNIA -6- 1 2 3 5 6 ? 8 9 10 !1 12 13 14 15 16 i? 18 19 2O 21 22 23 24 25 26 28 GER3U. D ,~ GEERUnGS C OUNT'~ COUNSEL SUITE 30O 3535 10TH STREET 20. Licensee recognizes and understands that this license may create a possessory interest subject to property taxation and that licensee may be subject to the payment of the property taxes levied on such interest. 21. Any transfer of this license requires the approval of the Board- of Supervisors. No approval or disapproval of a pro- posed transfer shall take place unless and until a public hearing affording due process is held in accordance with the requirements of Sections 3, 4 and 5 of Riverside County Ordinance No. 503, as amended. The Board of Supervisors may, as a condition of approval of the transfer, require the new licensee to pay to the County of Riverside that percentage of its annual gross receipts which new applicants are then required to pay. 22. All r~ghts, obligations and duties imposed by this license are binding on Licensee, its successors and assigns. 23. Licensee shall have the right to request renewal of its license upon written notice delivered to the Board of Supervisors not less than six (6) months before expiration of the original term of this license. The procedures and standards for renewal shall be consistent with those set forth in 47 U.S.C. Section 546, as amended. A filing fee of $750.00 shall accompany a request for a renewal. If the license is renewed, the renewal term shall be for five (5) years and upon such conditions as are contained in its license as in effect on the date of its expiration or upon such other conditions as the County and Licensee shall agree. Should the County deny the renewal request, such denial shall be accompanied by a written statement setting forth the reasons for such denial. Should renewal proceedings not be. completed prior to the expiration of the original term of this license, Licensee shall have the right and authority to continue operation of its CATV system pursuant to the terms and conditions of its license until such time as the renewal proceedings are finally concluded unless the delay or failure to complete the proceedings is due primarily to the action or inaction of Licensee; but in no event shall the right to continue operation under this provision continue for more than three (3) months after the expiration date of the license. Dated: January 10, 1989 ATTEST: GERALD A. MALONEY Clerk of the Board Deputy BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA BF C~i~man (SEAL) -7- 2 3 5 6 7 8 9 10 11 12 13 15 16 18 19 2O 21 22 23 24 25 Ga: 37~8LIT 28 GERALD' ,,I. GEERUNGS C OIj.'~ T¥ COLJ~$EL $UIT~ 35.35 ~OTH $TRE~_T RIV[R$1DE CALIFORNIA Licensee hereby accepts and agrees to faithfully perform and abide by all the terms and conditions of this license and understands that this license is not effective until an approved surety bond has been filed. THE CHRONICLE PUBLISHING COMPANY (Corporate Seal) -8- COUNTY OFRIVERSIDE, STATE OFCALIFORN~ ,. SUBJECT: Issuance of a 15 year nonexclusive cable license ~~~.~~ to Chronicle Publishing Company to provide cable television service in the 1st, 3rd and 5th supervisorial districts. RECOMMENDED MOTION: That the Board of Supervisors terminate Inland Valley Cablevision's community antenna television license, dated M__ay 28, 1988, and concurrently issue a new fifteen year nonexclusive com- munity antenna television license to Chronicle Publishing Company to provide cable television services in the unincorporated areas adja- cent to Corona, Home Gardens, Woodcrest, Box Springs, Moreno Valley, Banning, Beaumont, Ferris, Hemet, San Jacinto, Lake Elsinore, Rancho California, Sun City and Temecula as shown in the attached Exhibit A JUSTIFICATION: By letter dated July 18, 1988, Western Communi- cations, Inc. requested consent of the Board of Supervisors of the County of Riverside for the transfer and expansion of their communit' antenna television license serving the unincorporated areas adjacent to Hemet, San Jacinto and Idyllwild. The applicant has, since the granting of their license on May 28, 1985, substantially complied with the terms of its cable television license and has provided the quality service necessary to be responsive to the needs of its sub- scribers. It is also our office's opinion that the applicant has demonstrated financial, legal and technical ability to provide the services and facilities to the Hemet, San Jacinto and Idyllwild area: as set forth in its original application. Our office met with Mr. Chris Lammers and Mr. Charles Whirlock, General Manager for Inland Valley Cablevision and reached an agreement to effect their requeste~ transfer and expansion of existing service area through the issuance of a new fifteen year nonexclusive community antenna television license. Respectfully submitte:, C.A.O. RECOMMENDATION: FINANCIAL IMPACT: App rove. Negl i gib le. MINUTES OF TEE BO~ OF SUPERVISORS On motion of Supervisor Abraham, seconded by Supervisor Younglove and duly carried by unanimous vote, IT WAS ORDERED that th~ above matter is approved as recommended. Noes: None Qerald ~. ~1oney Absent: Larson Clerk~ Date: January 10, 1989 'B~De/p xc: COB, Co. Co., C_~¢ O~. u ' Prey. Agn. re/. Depts. Comments Dist. 1,3 g 5 AGENDAN( 9.6 "EXHIBIT ORDINANCE NO. 503 AN ORDINANCE OF THE COUNT~ OF RIVERSIDE ESTABLISHING THE PROCEDURE I~OR THE ISSUANCE OF LICENSES TO CONSTRUCT, OPERATE AND MAINTAIN A TELEVXSIONANTENNA CABLE SERVICE. The Board of Supervisors of the County of Riverside, State of California, do ordain as follows: Section 1. This ordinance establishes the procedure, terms and conditions for the issuance of non-exclusive licenses to construct, operate and maintain a community antenna television system in the unincorporated area of the County of Riverside. A "community antenna television system" or "CATV System" shall mean a system of antennae, coaxial cable or other transmission line and associated equipment and facilities installed, operated and maintained for the purpose of broadband communication services within the County, including without limitation the distribution of broadcast television or radio signals, specialized programming or any other video, audio or data transmission to or from subscribers. Section 2. Applications for a license or for the transfer of a currently existing license shall be made in writing to the Board of Supervisors, shall include the following information, and shall be filed with the Clerk of the Board: a. Name, home and business addresses of applicant and appli- cant's legal nature, such as individual, partnership, corpora- tion. If applicant is a partnership, the names and addresses of all partners, including limited partners, shall be list- ed. If applicant is a corporation, the names and addresses of all corporate directors and officers shall be listed. b. A statement regarding applicant's technical experience and background in the field of community antenna television systems and such other background as may be pertinent to the granting of a license or approval of a transfer. A record of any criminal convictions of the applicant or partners, officers, directors or owners of the applicant, not including convictions for minor traffic violations, shall be included as a part of the application. c. A statement regarding the applicant's proposed community antenna television systems in Riverside County, including a complete and specific description of the area of the county to be encompassed by the license, whether or not the applicant intends to wire and otherwise service the entire specified area in the near future and all construction arrangements that have been made by the applicant including an estimated timetable setting forth anticipated construction commencement and completion dates. d. A detailed statement which will demonstrate the applicant's financial ability to establish and operate the proposed community antenna television systems which will be authorized Ord. 503-1 Section 5. At the hearing, the applicant shall present evidence on the following matters: a. That the applicant's legal, financial, character and techni- cal qualifications are acceptable. b. That the applicant's construction plans, specifications and arrangements are feasible and adequate, c. That, in the case of an application for a new license, the applicant's plans will result in significant construction being accomplished within one year after receiving a certifi- cate of compliance from the Federal Communications Commis- sion; d. That the rates proposed to be charged to subscribers for installation of equipment and regular subscriber services are acceptable, e. The applicant's proposed procedure for the investigation and resolution of all complaints regarding its cable television operation. Section 6. If, at the conclusion of the public hearing, the Board of Supervisors determines that a license should be issued, it shall be in substantially the following form: A NON-EXCLUSIVE LICENSE OF THE COUNTY OF RIVERSIDE FOR A PERIOD OF 15 YEARS TO CONSTRUCT, OPERATE AND MAINTAIN A COMMUNITY ANTENNA TELEVISION SYSTEMS ALONG, UNDER AND ACROSS SUC~ PUBLIC ROADS AS NOW OR MAY HEREAFTER EXIST, IN THE AREA OF THE COUNTY OF RIVERSIDE e After public hearing affording due process, and after full consideration of the licensees legal, character, financial technical and other qualifications, including the feasibility of its construction arrangements, a non-exclusive license is hereby granted to , herein called "Licensee", for a period of 15 years from the date hereof to construct, operate and maintain a community antenna television system comprised of a system of antennae, coaxial cable or other transmission line and associated equipment and facilities installed, operated and maintained for the purpose of broadband communication services within the County of Riverside, including without limitation the distribution of broadcast television signals or radio signals, specialized programming or any other video, audio or data transmission to or from subscribers, along, under and across such public roads as now or may hereafter exist within the area of the County of Riverside, as shown on t~e map attached hereto as Exhibit "A". a. "Public roads" as used in this license means any public highway, road, street, lane, alley, court, sidewalk, park- way, or easement therefor, dedicated or offered for dedi- cation to the County of Riverside. Licensee shall: a. Construct, install and maintain all equipment and facili- ties in accordance with all requirements of the County, Ord. 503-3 shall provide service to all applicants in the order of receipt of orders therefor, so far as reasonable and practical. No person, firm or corporation in the approved service area of the Licensee shall be arbitrarily refused service; provided, however, that the Licensee shall not be required to provide service to any subscriber who does not pay the reasonable, applicable connection fee or monthly service charge. The Licensee shall not discriminate either in favor of or against any subscriber or potential subscriber of CATV services on the basis of sex, age, race, creed, color or national origin. 5. The County, State, or any city or public agency may.con- struct any new road, and improve, reconstruct, repair or main- tain any existing road, or portion thereof, or other public facility in which Licensee's equipment and facilities have been constructed or installed, and may abandon or remove any such road or other public improvement. Upon 30 days notice being given to the Licensee of the work, and area in which it is to be performed, the Licensee shall do all things necessary to protect its property during the progress of the work and if ordered by the governmental agency performing such work, Licensee shall disconnect, remove or relocate its property in such manner as shall be required to permit the performance of the work, and the maintenance, operation and use of the road or public improvement. Any private easements acquired by Licensee for the construction and installation of its equipment and facilities shall be construed to be subordinate to the rights of the County, presently existing or hereafter acquired, for future road construction or reconstruction. All of such things to be done and work to be performed shall be at the sole cost and expense of the Licensee. 6. If the State, County, any city or public agency shall acquire the property of the Licensee, either by purchase or through the right of eminent domain, this License sh~l not be assigned any value, before any court or other public authority, in excess of the sum paid by the Licensee to the County at the time of the application for the license. 7. The Licensee may, without the approval of the Board of Supervisors, increase the rates and charges for its basic CATV service by an amount not to exceed 5% per year; provided, however, that the Licensee shall have notified each subscriber at least 30 days in advance of such proposed increase and afforded such subscriber the right to terminate its CATV service with the Licensee and, provided further, that the Licensee shall file each such increase in the rates and charges for its basic CATV service with the Board of Supervisors within 10 days after such increase takes effect. Notwithstanding the foregoing, the Licensee may adjust the rates and charges for its basic CATV service without regard to the limitation contained in this paragraph if the rules and regulations of the Federal Communications Commission Ord. 503-5 rules and regulations of the Federal Communications Commission applicable to cable television systems. If any provision of this license or its application should be inconsistent with any of the foregoing, such act shall prevail. 12. This license shall not be construed to require the Licensee to implement a policy of construction which will require a complete wiring of the service area. However, the Licensee shall be required to extend energized trunk cable from any existing terminus of the' CATV system to any area immediately adjacent thereto having a density of at least 40 single-family residential dwelling units per cable/conduit mile; provided, however, that the Licensee shall not be obligated to service areas to which it is unable to obtain pole line facilities located in a direct route to such areas and the Licensee shall not be required to erect or obtain the use of pole line facilities along any indirect or circuitous route, nor is the Licensee required to use underground conduit where underground conduit is not otherwise required in order to supply service to any such areas. 13. The Licensee shall establish procedures for the investigation and resolution of all complaints regarding its cable television service and operations. These procedures shall include a system for reporting and resolving complaints regarding the quality of service, equipment malfunctiens, billing disputes and similar matters. Licensee shall maintain an office with a toll free telephone number in the area to be served that will be open to receive inquiries or complaints during normal business hours, and in no event less than 9:00 a.m. - 5:00 p.m., Monday through Friday. Any complaints from subscribers shall be investigated and acted upon not less than 3 business days from their receipt by the Licensee; provided, however, that where unusual.circumstances exist Licensee shall have a reasonable time to respond to said complaints. Licensee shall keep records of all maintenance service. Said records will indicate the nature of each service complaint, the date and time it was received, the disposition of said complaint and the time and date thereof. These records shall be made available for periodic .inspection by the County. All such records shall be kept on a calendar year basis and no records less than 3 years old shall be destroyed by Licensee. Licensee shall at the time the subscriber initially receives cable television service provide the subscriber with the above information, together with the toll free telephone number of the local office which will receive all complaints, in a permanent written form which reasonably notifies the subcriber of this information. 14. All actions of Licensee pursuant to this license shall be subject to review by the Clerk of the Board of Supervisors or his designee. 15. Licensee shall pay annually to the County five percent (5%) of its annual gross receipts derived from the operation of Ord. 503-7 holder of this license shal! file a similar bond within 30 days of the approva! of the transfer of this license by the Board of Supervisors. A cash deposit in the same amount may be made in lieu of said bond. This license shall not be effective until Licensee has filed an approved bond. If the license is forfeited, or if Licensee shall cease operations under the license for any reason, the surety bond or cash deposit shall not be released until Licensee obtains the required clearance from the Road Commissioner. 18. The Licensee shall not be liable or responsible for any failure or delay in the performance of any of its obligations under this license if such delay or failure arises from any cause or causes beyond the reasonable control of the Licensee, including without limitation labor dispute, strikes, other labor or industrial disturbances, acts of God, floods, lightning, shortage of materials, rationing, utility or communication failures, earthquake casualties, war, acts of a public enemy, riots, insurrection, freight or other embargoes, blockages, actions, restrictions, regulations, orders or quotas imposed by any government, agency or subdivision thereof, inability to secure necessary parts or materials or any similar causes. 19. This license is not exclusive and is issued pursuant to Sec- tion 53066 of the California Government Code. 20. Licensee recognizes and understands that this license may create a possessory interest subject to property taxation and that Licensee may be subject to the payment of the property taxes levied on such interest. 21. Any transfer of this license requires the approval of the Board of Supervisors. No approval or disapproval of a proposed transfer shall take place unless and until a public hearing affording due process is held in accordance with the requirement of Sections 3, 4 and 5 of Riverside_ County Ordinance No. 503.. The Board of Supervisors may, as a condition of approva! of the transfer, require the new Licensee to pay to the County of'Riverside that percentage of its annual revenues which new applicants are then required to pay. 22. All rights, obligations and duties imposed by this license are binding on the Licensee, its successors and assigns. 23. The Licensee shall have the right to request renewal of its license upon written notice delivered to the Board of Supervisors not less than six months before expiration of the original term of this license. The procedures and standards for renewa! shall be consistent with those set forth in 47 U.S.C. Section 546 as amended. A filing fee of $750.00 shall accompany a request for a renewal. If the license is renewed, the renewal term shal! be for five years and upon such conditions as are contained in its license as in effect on the date of its expiration or upon such other conditions as the County and the Licensee shall agree. Should the County deny the renewa! request, such denia! shall be Ord. 503-9 EXHIBIT GOVERNMENTAL ACCESS STANDARDS 1. On or before April 1, 1994, Chronicle shall make available one channel on its cable system serving the City of Temecula for purposes of governmental access programming to be This channel shall be subject to each of the following terms and presented by the City. conditions. a. The location and channel assignment for such channel shall be in the sole discretion of Chronicle, provided that the governmental access channel shall be a part of Chronicle's basic level of service which includes the retransmission of local broadcast channels. Chronicle shall provide the City with ninety (90) days prior written notice of any change in channel assignment for the channel. b. The City shall have sole responsibility for the administration and programming of such channel, including without limitation all personnel required in connection with the use of the channel, all facilities, equipment and material necessary for the use of the channel, the carriage of programming on the channel and the administration of all rules, regulations and procedures pertaining to the channel. c. The City shall develop reasonable rules, regulations and procedures pertaining to the use of such access channel. d. Chronicle shall maintain the distribution system over which such channel is carried on its cable system serving the City of Temecula and shall provide a signal for such channel having a technical quality comparable to the technical quality of other signals carried over such Re,os 92-81 -7- cable system, provided the technical quality of the signal supplied by the City for the programming carried over the channel as received at Chronicle's headend, receive site or other distribution point is comparable to the quality of other signals received at such point. Chronicle shall not be responsible for the quality of the signal delivered by City to the cable system's headend, receive site or other distribution point. If such signal is not of reasonably acceptable quality as compared to other signals then carried by Chronicle on its cable system serving the City of Temecula, Chronicle may discontinue its carriage if a signal of reasonably acceptable quality is not delivered to the cable system's headend, receive site or other distribution point within thirty (30) days after receipt of written notice from Chronicle. e. The City shall use such channel exclusively for purposes of governmental programming and shall not use such channel for commercial purposes, except with respect to the use of such channel by Chronicle under such terms and conditions as are agreed upon with the City. "Commercial" programming shall not include acknowledgement of sponsorship of programming. f. If, at any time three (3) years or more following the date such access channel is first utilized for governmental programming, such channel is not in use and programmed with governmental programming during at least fifty percent (50%) of the time between the hours of 6:00 a.m. and 11:00 p.m. Monday through Friday for twelve (12) consecutive weeks, such channel shall revert to the exclusive use of Chronicle. For purposes of this computation, character generated or similar programming shall be included in the determination of the aggregate time such channel is in use and programmed with access programming during the period in question. Chronicle shall make available to the City time elsewhere on its cable system serving Reso8 92-81 -8- the City of Temecula for carriage of such governmental programming (including all live programming originating from the locations identified in Section 2 below) as may be provided by the City following reversion of such access channel to Chronicle. g. As between the City and Chronicle, Chronicle shall have no liability of any nature arising from the administration, operation or use of such access channel on its cable system, including without limitation liability with respect to libel, slander, defamation, invasion of privacy or infringement of copyright, musical performing rights or any other right of any person, or with respect to the content of any programming presented over such access channel. h. The City shall indemnify, defend and hold Chronicle, its affiliates and their respective officers, directors, employees, shareholders, contractors and agents harmless from and against any and all liabilities and obligations asserted or other claims, actions, judgments, assessments, taxes, performance rights fees, residuals, charges, frees, penalties, damages, costs and expenses (including legal fees and disbursements) arising from or in any manner related to (i) such access channel or (ii) the use of or programming carried on such access channel or (iii) any programming provided by the City on any channel of Chronicle's cable system. The obligation of indemnity shall include without limitation any claim arising from or in any manner related to the solicitation, production, content, selection, rejection, scheduling, funding or presentation of programming over such channel, as well as such liability as may arise from claims of libel, slander, defamation, invasion of privacy or infringement of copyright, musical performing rights or any other rights of any person. Resos 92-81 -9- i. The City shall exercise sole editorial control over programming carried over such channel, except with respect to use of such channel by Chronicle under such terms and conditions as are agreed upon with the City. 2. On or before April 1, 1994, Chronicle shall provide the capability for insertion of video programming by the City over Chronicle's cable television system serving the City of Temecula from (i) the Community Center located at Sports Park, Rancho Vista Road, Temecula, and (ii) the Community Recreation Center located at 28816 Pujol Street, Temecula, subject to each of the following terms and conditions: a. Each such location may be assigned a shared return path (such as a common subchannel) by Chronicle over its cable television system. Programming shall not be originated simultaneously from each location. h. The insertion of video programming from such location shall be one-way only directed to Chronicle's headend, receive site or other distribution point from which video programming is distributed throughout the City. c. The City shall coordinate control of the location accessing any shared return path for presentation of video programming over Chronicle's cable television system serving the City of Temecula. d. Chronicle shall provide only a modulator at each such location by which video programming is directed to Chronicle's headend, receive site or other distribution point. The City shall be responsible for, and shall bear all costs and expenses related to, all other equipment and facilities required at each location for the origination and distribution of such video programming, including without limitation cameras, editing equipment, videotape recorders, R¢~o~ 92-81 -10- playback facilities and any and all other equipment and facilities utilized in connection with the origination and distribution of video programming from such location. Resos 92-81 -11- EXHIBIT D ACCEPTANCE OF RESOLUTION NO. 92-81 The Chronicle Publishing Company, hereby accepts and guarantees each and every term of Section 2, 3, and 4 of Resolution No. 92-81 of the City of Temecula, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECU-LA APPROVING THE SURRENDER OF THE CABLE TELEVISION SYSTEM FRANCHISE HELD BY JONES INTERCABLE OF SAN DIEGO AND ESTABLISHING ADDITIONAL OBLIGATIONS REGARDING THE CABLE SYSTEM OWNED BY THE CHRONICLE PUBLISHING COMPANY." DATED: October 27, 1992 THE CHRONICLE PUBLISHING COMPANY By: Name: Title: Resos 92-81 -1- ACCEPTANCE OF RESOLUTION NO. 92-81 The Chronicle Publishing Company hereby accepts and guarantees each and every term of Section 2, 3, and 4 of Resolution No. 92-81 of the City of Temecula, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE SURRENDER OF THE CABLE TELEVISION SYSTEM FRANCHISE HELD BY JONES INTERCABLE OF SAN DIEGO AND ESTABLISHING ADDITIONAL OBLIGATIONS REGARDING THE CABLE SYSTEM OWNED BY THE CHRONICLE PUBLISHING COMPANY." Dated: November 10, 1992 THE CHRONICLE PUBLISHING COMPANY By: Assistant Secretary CERTIFICATE OF ACKNOWLEDGMENT ~fi StaTeof California } On' Nov. -t0, lqC)~."Cbeforeme, Amy ', SS. (date) (name and title of officer) S: CounTy of San Fr~nci.~co the undersigned Notary Public ,personally appeared ': Christopher J. Lammers ,: personally known to me (or proved to me on the basis of satisfacTory evidence) ° To be the person (s) whose name(s) is/are subscribed to the within instrument '~? OFI:ICIAL SEAL t~ and acknowledged to me that he/she/they executed the same in his/her/their ~: ~ AMY C. RIZZO ' authorized capacity(ies), and that by his/her/their signature(s) on the instru- %: Notch/ Put:)llc-Colifotnlo ' menT the person(s), or the entity upon behalf of which the person(s) acted, My Con'ax~slon EXla~'~ ~ executed the instrument. !. gnaTure ~ · Notary's Si ~.'~.'~'~:.'~: ..............:.'j. ..........~ ......~",:~"~ "4J-"~g:~' 'J:J"~'4;, ....~ ..........