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HomeMy WebLinkAboutR-02-0917J -02-572(b) 6/5/02 RESOLUTION NO. 02w& 917 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE CHANGE OF CONTROL OF THE CABLE TELEVISION LICENSE GRANTED TO MIAMI TELE -COMMUNICATIONS INC. (THE "LICENSEE") FROM AT&T BROADBAND LLC TO AT&T COMCAST CORPORATION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on March 8, 2002, the City of Miami, Florida received an FCC 394 and an Application for City Consent by the City Commission to the proposed change of control of the cable television license granted to Miami Tele-Communications Inc. (the "Licensee") from AT&T Broadband LLC ("AT&T Broadband") to AT&T Comcast Corporation ("AT&T Comcast"); and WHEREAS, pursuant to Ordinance No. 11936 of the City of Miami, Florida and the license issued under Resolution No. 00- 489 ("License Agreement" or "License"), no such change of control may occur without prior approval of the City Commission of the City of Miami, Florida; and WHEREAS, the City has required that the applicant fulfill its obligations pursuant to the Ordinance and License Agreement and provide information on the proposed transaction CITY C0101ISSION I MEETINGt7lF AH', 2 2 2002 aesrslntio� i3p• 02 �� "- including details on the legal, financial, technical and other qualifications of the transferee and on the potential impact of the transfer on service; and WHEREAS, under FCC Rules, 47 CFR Section 76.502, the City has 120 days plus any extensions thereto from the date of submission of a completed FCC Form 394, together with all Exhibits, and any additional information required by the License Agreement or applicable state or local law, to act upon an application to sell, assign, or otherwise transfer controlling ownership of a cable system; and WHEREAS, Licensee has represented to the City that it has taken all actions and implemented all practices necessary to insure that the Licensee is, unless otherwise noticed, in compliance with all provisions of the Ordinance and License Agreement; and WHEREAS, the City has noticed Licensee of all known material outstanding violations and Licensee has cured or agreed to cure in a manner approved by the City those violations and has paid or agreed to pay to the City all underpayments and costs known to have been incurred as a result of such non- compliance; and WHEREAS, the City has required written acceptance from Licensee and written acceptance by AT&T Comcast Corporation of the terms and conditions of this Resolution, the Ordinance and Page 2 of 7 02— r2,,,,, n 17 License Agreement by affidavit as a condition precedent to adoption of this Resolution (affidavit attached as Exhibit A); and WHEREAS, in the event the proposed transaction between AT&T Broadband LLC and AT&T Comcast Corporation is not consummated within one hundred twenty (120) days of the date hereof or does not reach final closure for any reason, or in the event such closure is reached on terms substantially or materially different to the terms described in the FCC Form 394 and exhibits thereto, the approval granted in this Resolution shall be null and void. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA, THAT: Section 1. The foregoing recitals are approved and incorporated by reference. Section 2. To the extent required, the City of Miami, Florida, consents to the change in ultimate control of the City of Miami, Florida's Cable Television License Agreement granted to Miami Tele-Communications Inc. (the "Licensee") from AT&T Broadband LLC to AT&T Comcast Corporation. Page 3 of 7 02- 917 Section 3. That the consent granted herein does not constitute and should not be construed to constitute a waiver or release of any obligations of the Licensee under the Ordinance, the License Agreement and any and all amendments and agreements related thereto. Section 4. That the consent granted herein does not and should not be construed to constitute a waiver of any right of the City or Licensee under applicable law including, but not limited to, the Ordinance or the License Agreement; and further, this consent shall not prejudice the City's rights with respect to the enforcement, renewal or transfer of the current License Agreement and any and all amendments or agreements related thereto. Section 5. That the consent herein granted is conditioned upon (a) Licensee's assurances set forth in its affidavit submitted to the City on and attached as Exhibit A; (b) Licensee assurances as set forth in attached Exhibit B; and (c) payment to the City no later than July 13, 2002, of cost recovery for all costs incurred by the City related to the evaluation the transfer application and the transfer process including, but not limited to, consulting fees and legal fees. Page 4 of 7 02— 917 Section 6. That this Resolution shall have the force and effect of continuing the Agreement between the Licensee and the City, as the License Authority, to the extent consistent with Ordinance No. 11936, the License Agreement and any and all amendments and agreements related thereto including, but not limited to attached Exhibits A and B. Section 7. That the City reserves all of its rights pursuant to Federal, state and local law including, but not limited to the rights in (a) the license renewal process including, but not limited to, the right to consider violations of the license by the Licensee, either prior to or subsequent to the merger of AT&T Broadband LLC and AT&T Comcast Corporation; (b) the license transfer process including, but not limited to, the right to act upon any application to sell, assign or otherwise transfer any interest in the Licensee or the cable system; and (c) the enforcement of the Ordinance, the License Agreement, and any and all amendments, agreements and assurances attached thereto. Section 8. That the consent granted expressly does not waive and expressly reserves to the City of Miami, Florida, its rights to fully exercise all applicable legal rights and Page 5 of 7 02— 90 authority with regard to Licensee, AT&T Broadband LLC and AT&T Comcast Corporation and their affiliates, parent or subsidiaries in connection with any use of the City's rights-of-way not authorized by the City including, but not limited to levying fines or instituting litigation for trespass and ejectment. Section 9. That the consent granted is an express non - waiver and reservation of the City's rights and authority against Licensee and AT&T Comcast Corporation for any License violations that may exist including, but not limited to those in connection with any unauthorized use of Licensee's or AT&T - Comcast Corporation's facilities or facilities by any entity in any way affiliated with a company in which Licensee or AT&T Comcast Corporation, its affiliates, parent or subsidiary has an interest. Section 10. That the consent granted is subject to the transferor's and transferee's compliance with all other applicable legal requirements and the City does not waive and expressly reserves the right to enforce full compliance with its Ordinance and License requirements, whether or not any non-compliance that may be determined arose before or after the transfer of control from AT&T Broadband LLC to AT&T Comcast Corporation. Page 6 of 7 02— 917 Section 11. That this Resolution shall become effective upon the date of its adoption herein. PASSED AND ADOPTED this 22nd day of Auaust , 2002. ATT ST: P ISCILLA A. TH6MPSON CITY CLERK AS/fO FROM A ORRECTNESS JILEOPAJURO VILARE TTORNEY rWV88-:smg:YMT MANUEL A. DIAZ, MA Page 7 of 7 02— 917 CITY OF MIAMI CITY ATTORNEY'S OFFICE MEMORANDUM TO: Priscilla A. Thompson, City Clerk FROM: Yamile Marrero-Trehy, Assistant City Attorney v 0 DATE: October 25, 2002 RE: Change of Control of Cable Television to AT&T/Comcast Corporation Resolution No.: 02-917 Enclosed please find original exhibits to be retained for the above -referenced Resolution. 1832. Should you have any questions please call me at (305) 416- Ij ,lWviW 40 A.110 'A8310 A LID NOSdH 0H ; "" Y IIIOSlbc 000Wd 81001002 YMT: smg 2002MEMOS/W053 02- j 1 2 - 917 L Resolution R-02-917 Exhibit A 02- 917 4hw `. EXHIBIT A UNCONDITIONAL ACCEPTANCE OF TERMS OF RESOLUTION NO. R-02-917 BEFORE ME, appeared the undersigned authority who being duly sworn upon his oath deposes and states that: 1. Affiants are, respectively, the Senior Vice President of AT&T Broadband, LLC ("AT&T Broadband") and the person authorized to execute this document on behalf of Miami Tele- Communications, Inc., ("Licensee") andthe �e3, of AT&T Comcast Corporation ("AT&T Comcast"), and the person authorized to execute this document on behalf of AT&T Comcast, for the change in ultimate control of the Licensee, as set forth on the FCC Form 394 received by the City of Miami, Florida ("City"), on or about March 8, 2002 ("Change of Control") 2. Affiants are submitting this Affidavit as a condition precedent to the approval of the Application for Change of Control of the Licensee from AT&T Corp. to AT&T Comcast. 3. Licensee, affirms that it is and will continue to be bound by and shall assume all the lawful and applicable terms and conditions of the City's Cable Systems Ordinance, Ordinance No. 11936, ("Ordinance"), the license agreement between the Licensee and the City, ("License Agreement") and any lawful amendments and agreements related thereto, including but not limited to the Settlement Agreement attached to the Resolution approving the Change of Control of the Licensee as Exhibit B, between the City and Licensee as settlement of the disputes contained therein ("Settlement Agreement") (the Ordinance, License Agreement and such amendments and agreements are collectively referred to herein as the "License") and the Resolution of the City Commission of the 02- 917 kv City approving the Change of Control of the Licensee from AT&T Corp. to AT&T Comcast. 4. AT&T Comcast hereby attests and acknowledges that the Change of Control will not affect, diminish, impair or supercede the binding nature of the existing valid ordinances, resolutions and agreements applicable to operation of the cable system in the City, including but not limited to the Ordinance, License Agreement, Settlement Agreement and any guarantees provided herein. 5. Licensee and AT&T Comcast recognize and acknowledge that the financial qualifications of AT&T Comcast are an important and relevant consideration of the City for the evaluation of the proposed Change of Control, and in particular, the assurance that sufficient financial resources are available to Licensee to meet the obligations of the Licensee under the terms of the License. Accordingly, Licensee and AT&T Comcast represent or warrant as follows: (i) AT&T Comcast and Licensee represent and warrant that the Change of Control will not have any adverse financial effect on the cable system, such that Licensee's financial resources necessary to comply with the terms and conditions of the License are adversely affected. AT&T Comcast acknowledges and agrees that from and after the Change of Control it will not take any action that prevents the Licensee's full performance of the applicable provisions of the License and this Unconditional Acceptance. (ii) Licensee represents and warrants that after the proposed transaction, Licensee's financial resources will be such as shall enable it to maintain and operate the cable system in compliance with all requirements of the License. 6. Licensee and AT&T Comcast represent and warrant that all borrowings by Licensee, AT&T Comcast and their Affiliates shall be recorded and reported in accordance with Generally Accepted Accounting Principles (GAAP) and conform to the requirements of the Securities and 2 02- 917 Exchange Commission, as those principles and requirements may be amended from time to time. 7. Licensee and AT&T Comcast represent and warrant that Licensee will not be an obligor for any debt that may be incurred by AT&T Comcast to meet cash funding requirements of the Merger Agreement. 8. Licensee shall cooperate in any License compliance inquiry, including but not limited to financial, customer service performance, call center records and financial and technical audits as specified under the terms and conditions of the License. AT&T Comcast agrees that the records of the Licensee, which are required to be maintained and are subject to inspection by the City, pursuant to the License, shall be subject to inspection regardless of whether such records are maintained by Licensee or AT&T Comcast, or any subsidiary or affiliate. 9. Licensee agrees that the City does not waive any right to require compliance with the License by Licensee, whether or not any noncompliance is the subject of this Acceptance and hereby assumes responsibility for any and all non-compliance under the License and/or the Ordinance. 10. This Exhibit A may be signed in counterparts. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 3 92- 917 c r FURTHER AFFIANT SAYETH NAUGHT. STATE OF FLORIDA ss: COUNTY OF BROWARD MIAMI TELE -COMMUNICATIONS, INC. � FFA By: Name: Title: . "t 161K V r�- BEFORE ME, the undersigned authority, personally appeared akn F14-/D1,41L who is known to me RQM0- ally (o and upon being first duly sworn acknowledged that 1=4she executed the foregoing document freely and voluntarily and for the purpose therein expressed. WITNESS my hand and official seal in the County and State last aforesaid this day of , 2002. My Commission expires. � Notary Public 0 IXA_ LEFnKON N DD 061234nuary26,2006vice & BOndM InC 02- 917 IL AT&T COMCAST CORPORATION LM Name: ARTHUR R. BLOCK Senior Vice P.residw Title: _ STATE OF ss: COUNTY OF mak•\�ti.� ) BEFORE ME, the undersigned authority, personally appeared , who is known to me personally (or provided proof of identification) and upon being first duly sworn acknowledged that he / she executed the foregoing document freely and voluntarily and for the purpose therein expressed. WITNESS my hand and official seal in the County and State last aforesaid this 3 day of 2002. My Commission expires: NOTARIAL SEAL GRACE M. SAPINOSA, Notary Public City of Philadelphia, Phila. County IVY Commission Expires July 20, 2006 ;Notary Public 5 02- 917 Resolution R-02-917 Exhibit B 02- 917 EXHIBIT B SETTLEMENT AGREEMENT This settlement agreement ("Settlement Agreement") is entered into by and between the City of Miami, a Florida municipal corporation ("City") and Miami Tele-Communications, Inc., a corporation ("Licensee") this 02A day of August, 2002. RECITALS WHEREAS, Licensee is a licensed cable operator in the City pursuant to Resolution 00- 489, effective June 8, 2000 ("License Agreement" or "License"); and WHEREAS, Licensee is providing cable services pursuant to the License; and WHEREAS, disputes have arisen between the City and Licensee regarding the performance of Licensee under the terms and conditions of the City's Cable Systems Ordinance, Ordinance No. 11936 ("Ordinance") and the License Agreement ("Disputes"); and WHEREAS, Licensee has asserted that it is in compliance with the License and Ordinance; and WHEREAS, AT&T Corp., ("AT&T") is seeking consent for a Change of Control of the Licensee from AT&T Corp. to AT&T Comcast Corporation ("AT&T Comcast") by the City Commission; and WHEREAS, the parties have determined to amicably resolve the Disputes and other present issues between them. AGREEMENT NOW, THEREFORE, the parties intending to be contractually bound agree as follows: A. PAST COMPLIANCE. 1. System Upuade. Licensee acknowledges that it was obligated pursuant to Page 1 of 27 02- 917 Section 14 of the License Agreement to complete and activate, at a minimum, ninety percent (90%) of the cable system by September 1, 2001. Licensee states that it has completed and activated an upgrade of the cable system, as of June 1, 2002, to ninety percent (90%) of the total cable system. The City and the Licensee, through a mutually agreed upon independent engineer, have received an engineering report which states that as of June 1, 2002, Licensee has completed seventy-six point forty-two percent (76.42%) of the total cable system, and as of July 30, 2002, eighty-four point zero eight percent (84.08%) of the total cable system. Licensee has submitted material to support its claim that it has been unable, through no fault of its own, to gain access to certain multiple dwelling units, thus raising the percentage of the completed cable system to ninety percent (90%). The City has reviewed the documentation and agrees that the cable system was ninety percent (90%) complete on or before June 1, 2002. Licensee, without admitting liability for any claim, in full satisfaction of all noncompliance issues and violations arising under the terms of the Ordinance and License Agreement relating to the upgrade and activation of the cable system in the City, through the date hereof, shall pay to the City the sum of Five Hundred Forty -Nine Thousand Dollars ($549,000.00) within thirty (30) days of approval of this Settlement Agreement by the City. 2. Customer Service Violations. Licensee, in full satisfaction of all noncompliance issues and violations arising under the terms of the Ordinance and License Agreement relating to any customer service violations, as those are referenced in the License Agreement and Ordinance, through the date hereof, shall pay to the City the sum of Seventy Two Thousand Dollars ($72,000.00) within thirty (30) days of approval of this Settlement Agreement by the City. Page 2 of 27 02- 917 3. Policies and Practices. (a) Dispute Resolution. (i) Licensee hereby acknowledges and recognizes that the Ordinance and License Agreement sets forth the requirement that the Licensee shall develop written procedures for the investigation and resolution of all subscribers or City resident complaints, including, but not limited to those regarding quality of service and equipment malfunction, and that such procedures shall be submitted for the review and approval by the City Manager. Notwithstanding the above, on or about December 21, 2001, Licensee distributed to its subscribers the AT&T Broadband Policies and Practices (the "Policies"), which sets forth, in part, policies, complaint procedures and dispute resolutions for its cable subscribers. Licensee agrees that within thirty (30) days following adoption of the Resolution, it will notify, in writing, all subscribers located within the City that Section 10 of the Policies has been withdrawn (as so amended by such withdrawal of Section 10, the "Amended Policies") (ii) The City has reviewed the Amended Policies and, has found them acceptable in accordance with the requirements of the Ordinance. (iii) Licensee hereby acknowledges that this Acceptance does not in any manner diminish or impair the rights of the City with respect to future violations and remedies available to the City under the License or Ordinance and the City, in accordance with the terms set forth in the Settlement Agreement, hereby waives any liquidated damages with respect to any alleged violation(s) arising out of the Policies. (iv) Licensee hereby agrees that any future revisions of any and all customer service standards or policies or any such new standards and policies shall be submitted to the City before distribution to subscribers as required by the applicable provisions of the Page 3 of 27 02- 917 License. (v) Licensee agrees that in the event of a conflict between the Amended Policies and applicable law, the License Agreement, the Ordinance and applicable law shall control over the Amended Policies. Licensee and the City agree that their relationship is governed solely by the License and the Ordinance and that the Amended Policies do not apply to the City. (b) Risk Assessment and Deposit Policy. (i) Licensee hereby acknowledges and recognizes that the Ordinance sets forth the requirement that the Licensee shall develop written procedures for the investigation and resolution of all subscribers or City resident complaints, including, but not limited to those regarding quality of service and equipment malfunction, and that such procedures shall be submitted for the review and approval by the City Manager. Notwithstanding the above, on or about May 21, 2002, Licensee distributed to its subscribers AT&T Broadband's Risk Assessment and Deposit Policy (the "Risk Assessment Policy"), which sets forth, in part, AT&T Broadband's intent to check potential subscribers credit history and implement policies on subscriber security deposits. Licensee agrees that within thirty (30) days following adoption of the Resolution, it will notify, in writing, all subscribers located within the City that the Risk Assessment Policy has been amended to include non-discriminatory language, as set forth on Attachment 1 hereto (the "Amended Risk Assessment Policy"). (ii) The City has reviewed the Amended Risk Assessment Policy and has found it acceptable in accordance with the requirements of the Ordinance. Page 4 of 27 02- 917 (iii) Licensee hereby acknowledges that this Acceptance does not in any manner diminish or impair the rights of the City with respect to future violations and remedies available to the City under the License Agreement or Ordinance and the City, in accordance with the terms set forth in the Settlement Agreement, hereby waives any liquidated damages with respect to the alleged violation arising out of the Risk Assessment Policy. (iv) Licensee hereby agrees that any future revisions of any customer service standards and policies shall be submitted to the City before distribution to subscribers as required by the applicable provisions of the Ordinance. (v) Licensee agrees that in the event of a conflict between the Amended Risk Assessment Policy and applicable law, the License Agreement, the Ordinance and applicable law shall control over the Amended Risk Assessment Policy. Licensee and the City agree that their relationship is governed solely by the License and the Ordinance and that the Amended Risk Assessment Policy does not apply to the City. 4. Financial Audit. Licensee agrees that the City may perform a financial audit of the Licensee for the period January 1, 1997 through September 30, 2001 pursuant to Section 11- 16 of the Ordinance. If, as a result of the audit, and in accordance with Section 11-16 of the Ordinance, the City determines that the Licensee has underpaid the quarterly license fees owed during the time frame referenced above in an amount equal to or exceed two percent (2%) of the license fees actually paid based on the components of gross revenues as specifically defined in the Ordinance, the cost of the audit shall be paid by the Licensee to the City within thirty (30) days of receipt of demand for payment unless Licensee can show the audit is materially incorrect. Licensee agrees that it shall remain fully liable to the City for any underpayment in License fees due to the City during this period. Nothing in this Settlement Agreement shall act Page 5 of 27 02- 917 as a waiver of any right or enforcement remedy the City holds for the underpayment of License fees. If any underpayment of License fees is discovered, Licensee shall pay the underpayment of License fees, including any penalties, fines and/or late charges that may be assessable under the License Agreement or Ordinance within thirty (30) days of notice of the financial audit by the City to the Licensee. B. PUBLIC ISSUES. 1. System Completion. Licensee agrees that it shall complete and activate the cable system, in its entirety, including but not limited to all single family homes, all multiple dwelling units and all public buildings required under the Ordinance, other than those locations where Licensee has been unable, through no fault of its own, to gain access within the City on or before December 31, 2002. In the event that Licensee does not complete the upgrade and activation of the total cable system by December 31, 2002, and such failure to complete is due to the fault of the Licensee, Licensee shall immediately begin incurring fines and penalties in the amount of One Thousand Dollars ($1,000.00) per day, or any part thereof, for each day the upgrade or activation is not complete. 2. Amendments to License Agreement and Ordinance. (a) The City shall cause Section 11-18 of the Ordinance to be modified as set forth in Attachment 2 attached hereto: (i) Credits to Customers. The City and Licensee by execution of this Settlement Agreement acknowledge and agree that the modified Section 11-18 of the Ordinance referenced above and set forth in Page 6 of 27 02- 917 Attachment 2 attached hereto shall be deemed a modification of Section 31 of the License Agreement. (b) The City shall cause Section 11-17(b)(14) of the Ordinance to be modified as set forth in Attachment 3 attached hereto to reflect that the Licensee shall file an annual Equal Employment Opportunity Report with the City. The City and Licensee by execution of this Settlement Agreement acknowledge and agree that the modified Section 11-17(b)(14) of the Ordinance referenced above and set forth in Attachment 3 attached hereto shall be deemed a modification of the License Agreement. 3. Bill Payment Centers. The Licensee currently makes available third -party payment centers in the City and shall endeavor to maintain such third -party payment centers, including at least one or two third -party payment centers within each City voting district during the term of the Franchise. 4. Programming Services. Licensee recognizes that the City is made up of citizens of very diverse ethnic, cultural and language backgrounds. Licensee shall endeavor to offer to all subscribers a diversity of video programming services, including minority oriented programming, provided, however, that nothing contained in this Settlement Agreement shall be interpreted as a requirement for provision of any specific video services. In conformance with federal law, Licensee shall provide all leased access programming providers access to Licensee's Basic Tier program but shall not require that all leased access programming be included in the Basic Tier. Licensee agrees that it shall, no less than thirty (30) days prior to making any changes to the Basic Tier service of the cable system, provide notice of such programming changes to the Page 7 of 27 02- 917 City and shall meet with the Mayor and City Manager, at their request, to discuss the proposed changes prior to implementing any change within such thirty (30) day period. Licensee has requested to move Telemiami from the Expanded Basic Tier to the Basic Tier on or before August 27, 2002. The City acknowledges the request by Licensee with respect to waiving the notice obligation pursuant to Section 11-18 (n) (5) and agrees to waive said notice obligation. 5. Annual Surveys. Licensee and the City agree that they may conduct a survey of the customer service performance of the Licensee once a year. Licensee and the City shall mutually agree to survey questions. Licensee and the City agree the each shall bear equal portions of the total costs involved in the preparation, conducting and reporting of such survey to the subscribers. The City reserves the right to conduct its own, independent survey of the subscribers, at any time. In the event the City desires to conduct its own independent survey of the subscribers, Licensee shall not be responsible for any costs of the independent survey. 6. District Meetings. Licensee and the City agree that they shall conduct, on an annual basis, at a time and place mutually agreeable to each party, a public meeting for each of the voting districts located within the City. Licensee shall bear the costs involved in the preparation and noticing of the public meeting to the subscribers. Licensee shall make ten (10) spots of thirty-second duration available per district meeting for public service announcements produced by the City to inform the public of each such public meeting. 7. Promotion of Cable Competition. Licensee, and its Affiliates acknowledge that pursuant to Section 11-3(a) of the Ordinance, it is the City's intent to promote competitive cable rates and services, and that pursuant to Section 11-5(b) of the Ordinance and Section 5 of the Page 8 of 27 02- 91 '7 License Agreement, that the Licensee is nonexclusive. Accordingly, to further potential cable competition, the Licensee and its Affiliates agree to comply with all applicable federal and state laws concerning unfair competition, restraint of trade and deceptive trade practices with respect to the provision of cable services. 8. Attorney General Investiiation. AT&T Broadband and certain of its affiliates and subsidiaries are the subject of a current investigation and administrative inquiry by the Attorney General of the State of Florida that may result in legal action against such entities. Licensee agrees that it shall comply with all federal and state law, including any decision by the Attorney General of the State of Florida with respect to consumer protection and arising out of such investigation and inquiry. Licensee further agrees that by consenting to the Change of Control, the City shall not have waived any rights it may have to receive any benefits, for itself or for Licensee's subscribers in the City, that are determined to be given by resolution of the Attorney General's investigation, whether through judicial decision, administrative action, settlement or voluntary agreement. To the extent that the Resolution extends to other subscribers or municipalities in Florida, benefits as prescribed by the Attorney General, resulting out of its current investigation, for such other subscribers or municipalities shall automatically be made available to the City or Licensee's subscribers in the City to the extent that the City or such subscribers have been subject to the same violations. 9. Rate Deferral. City acknowledges that Licensee voluntarily deferred a rate increase of Six Dollars ($6.00) per month associated with the rebuild and increased channel offerings for two (2) months, representing a savings of approximately Three Hundred Twenty Two Thousand Nine Hundred Fifteen Dollars ($322,915.00) to subscribers. C. CITY ISSUES. Page 9 of 27 02- 917 1. Build -out Deferral. Licensee and the City agree that the build -out of the cable system to those areas more commonly known as Virginia Key and Watson Island shall be deferred to January 1, 2006. In consideration of the City granting this deferral to Licensee, Licensee agrees to pay the sum of Three Hundred Ninety Thousand Dollars ($390,000.00) to the City within thirty (30) days of the approval of this Settlement Agreement by the City. In the event that Licensee has not completed the build -out and activation of the cable system to the Virginia Key and Watson Island areas on or before January 1, 2006, through no fault of its own, Licensee shall immediately begin incurring fines and penalties in the amount of One Thousand Dollars ($1,000.00) per day or any portion thereof, as specified in Section 11-13 (a) (4) of the Ordinance, for each day the build -out or activation of the cable system remains incomplete. In the alternative, Licensee may request a further extension of the requirement if the build -out of such areas is financially infeasible on terms and conditions to be negotiated between the parties. However, the City is under no obligation to grant any further extension. 2. High Saeed Internet Service. Licensee acknowledges that it has voluntarily launched cable modem service to its subscribers in the City as of the date of this Settlement Agreement. 3. Government Channel(s). Licensee agrees that the City shall from time to time designate additional access sites from which the City can upstream broadcasting of certain governmental meetings and events. Licensee agrees that it shall construct, install and maintain such additional access sites upon the written request of the City within a mutually agreed upon time frame. Licensee shall charge the City only its direct costs incurred for the construction of these additional sites. Page 10 of 27 02- 917 (0, (a) Channel Assignment. Subject to applicable law, Licensee agrees that it shall use its reasonable efforts to not cause any re -assignment of the current City government access channel on channel 9 on the cable system. If such reassignment occurs, the Licensee shall carry the City government access channel on that tier of service required under federal law. In addition, Licensee shall provide: (i) reimbursement to the City for its actual costs in marketing the new channel assignment up to a maximum of Five Thousand Dollars ($5,000.00); (ii) sixty (60) days prior notice to the City of the channel reassignment; (iii) fifty (50) spots of thirty- second duration for public service announcements, to be aired on the Cable System, produced by the City to inform the public of such channel reassignment during the thirty (30) day period prior to such reassignment and (iv) notice to customers via a bill stuffer of the channel reassignment. (b) Additional PEG Channel. The City shall cause Section 11-15 of the Ordinance to be modified as set forth in Attachment 4 attached hereto to waive the prerequisite requirements for a second access channel. Licensee agrees that upon ninety (90) days written notice, Licensee shall begin broadcasting of the second PEG channel pursuant to the terms and conditions set forth in Section 11-15 of the Ordinance, as amended. The City and Licensee by execution of this Settlement Agreement acknowledge that the modified Section 11-15 of the Ordinance referenced above and set forth in Attachment 4 attached hereto shall be deemed a modification of Section 19 of the License Agreement. (c) Programming Guide. Licensee agrees that it shall assist the City in the distribution of a programming guide for the public, educational and government channels of the cable system. Licensee may, bi-annually and upon request of the City, include the program guide in the monthly billing statement mailed to subscribers in accordance with Section 11-18 of the Ordinance. Additionally, Licensee shall assist the City to include government channel Page 11 of 27 02- 917 programming on the video programming guide of the cable system. 4. I -Net. (a) Licensee shall work with the City to develop a plan for the construction, operation and maintenance of an Institutional Network ("I -Net") for the City, or for I -Net services that would be available by lease to the City ("I -Net Services"), that would interconnect such City public buildings, schools and facilities designated by the City, provided however that all said buildings and schools are public and not commercial or private. The I -Net or I -Net Services shall be paid for by the City through its own funds and shall not be an obligation of the Licensee or its subscribers. (b) The City shall prepare and provide to the Licensee specifications for such I -Net, which shall include, but not be limited to, designated sites and the technical capacities and services required at each such site. Licensee shall work with the City to determine the most cost- efficient technical alternatives to the provision of such I -Net or I -Net Services. (c) Licensee shall provide, within 120 days of receiving such specifications, an estimate of the costs to provide such I -Net or I -Net Services ("Final Estimate"). The Final Estimate shall be based upon the actual costs for material and labor and any costs directly associated with supervisory personnel, if any, as well as any cost of funds incurred, based upon the average effective interest rate on debt outstanding as reported in AT&T Comcast's most recent Form 10-Q filed with the Securities and Exchange Commission. (d) The City may, within 60 days after receipt of the Final Estimate, notify the Licensee that it would like a revised estimate for the I -Net or I -Net Services to accommodate different sites, capacities or services. Page 12 of 27 02— 917 (e) The Licensee shall prepare and send to the City a revised estimate ("Revised Estimate") within 120 days of receiving a request from the City pursuant to subparagraph (d). The Licensee shall only be obligated to prepare one Revised Estimate. (f) Upon receipt of the Final Estimate or the Revised Estimate, the City shall have 120 days to accept either the Final Estimate or the Revised Estimate, as applicable. If the City elects to accept the Final Estimate or the Revised Estimate, Licensee shall make available the I -Net or I -Net services for the amount set forth in the Final Estimate or the Revised Estimate. The City and the Licensee shall then enter into an agreement containing terms and conditions related to the construction, operation and maintenance of the I -Net or the provision of I -Net Services, including payment by the City to Licensee (the "I -Net Agreement"). If the City chooses not to accept either of the estimates, Licensee is relieved from any further obligation with respect to the I -Net or I -Net Services. (g) Licensee and the City shall use their best efforts to negotiate the I -Net Agreement and to take such steps as are required of each of them in a timely manner to make such I -Net or I -Net Services available in the City if the City elects to secure such I -Net or I -Net Services from Licensee in accordance with this Section 4 and the I -Net Agreement. 5. Financial Guaranty. The City recognizes that Licensee currently has in posted for the City's benefit and protection: (a) A Two Million Dollar ($2,000,000.00) letter of credit to ensure the faithful performance of all provisions of the License Agreement; and (b) A Five Hundred Thousand Dollar ($500,000.00) Construction Bond for the construction, upgrade, rebuild or other significant work in the Streets or Rights -of -Way; and (c) A Three Hundred Thousand Dollar ($300,000.00) Construction Bond also Page 13 of 27 02- 917 A q for the construction, upgrade, rebuild or other significant work in the Streets or Rights -of -Way. Licensee and the City agree that the construction bonds referenced in this paragraph shall be increased to a combined sum of One Million Dollars ($1,000,000.00) and shall remain in place, for the benefit and protection of the City until such time as the City has verified that Licensee has (1) completed and activated the upgrade of cable system, pursuant to Section A (1) of this Settlement Agreement; and (2) the completion and activation of the Cable System in the areas referenced in Section C (1) of this Settlement Agreement Once such completion and activation has been completed, as specified above, the City agrees to sign all documents required to release the construction bonds required herein and in the Ordinance and License Agreement. Licensee recognizes and acknowledges that the financial qualifications of AT&T Comcast are an important and relevant consideration of the City for the evaluation of the proposed Change of Control, and in particular, the assurance that sufficient financial resources are available to Licensee to meet the obligations of the Licensee under the terms of the License. Accordingly, Licensee represents and warrants as follows: (i) Licensee represents and warrants that the Change of Control will not have any adverse financial effect on the cable system, such that Licensee's financial resources necessary to comply with the terms and conditions of the License are adversely affected. (ii) Licensee represents and warrants that after the proposed transaction, Licensee's financial resources will be such as shall enable it to maintain and operate the cable system in compliance with all requirements of the License. (iii) Licensee shall provide a Performance Guarantee Agreement in the Page 14 of 27 02- 917 form attached hereto from AT&T Broadband Corp. (iv) Nothing shall prohibit Licensee, however, from increasing rates in the ordinary course of business in compliance with federal laws, so long as the rate increases are not caused by the costs associated with the Change of Control, subject to Section D (2) of this Settlement Agreement. (d) Off -Balance Sheet Borrowing. Licensee represents and warrants that all borrowings by Licensee shall be recorded and reported in accordance with Generally Accepted Accounting Principles (GAAP) and conform to the requirements of the Securities and Exchange Commission, as those principles and requirements may be amended from time to time. (e) Licensee Debt Obligations. Licensee represents and warrants that Licensee will not be an obligor for any debt that may be incurred by AT&T Comcast to meet cash funding requirements of the Merger Agreement. 6. Financial Grant. Licensee will provide a grant/donation, in the amount of Seventy Thousand Dollars ($70,000.00) to the Endowment for Youth Program for various after school programs within thirty (30) days after approval of this Settlement Agreement by the City. 7. Technical Assistance. Licensee shall designate a management level employee and a senior level technical employee to be responsible for working with the City to address problems that may arise under the License and shall serve as Licensee's representative to the City and subscribers ("Technical Representative"). The primary purpose of this service is to provide the City with direct access to supervisory level personnel with the authority to promptly act on customer service and technical complaints referred by the City to Licensee. This service shall, at a minimum, include the following: (a) The personnel providing the service shall have sufficient authority and Page 15 of 27 02- 90 access to Licensee's facilities and personnel in order to investigate and take appropriate remedial action without delay; and (b) The City shall be provided the business telephone numbers during normal business hours that will be answered by a live person and will provide immediate access to the Technical Representative. In addition to the business telephone numbers, Licensee shall provide after hours contact telephone numbers. (c) Licensee shall provide the City with written notice of changes in the Technical Representative at least ten (10) days prior to any change of the Technical Representative. 8. Ouarterly Customer Service Meetings. City and Licensee have agreed to an Enhanced Customer Service Plan to commence September 1, 2002 for a one (1) year test period. The Plan may be extended by mutual agreement of the City and the Licensee. During the term of the Plan, the City and Licensee shall meet at least quarterly to discuss the status of customer service and any plans by Licensee to improve or affect future customer service relating to the Cable System. 9. Additional Sites for Provision of Cable Service. Licensee reaffirms its commitment to comply with Section 11-13(a)(4) of the Ordinance and Section 16 (B) of the License Agreement. D. MERGER ISSUES. 1. City Consent to Change of Control. The City shall consent to the Change of Control of the Licensee from AT&T to AT&T Comcast subject to execution and delivering to Page 16 of 27 02- 917 the City within twenty (20) calendar days from the date hereof, the following documents: Licensee shall execute and deliver the Settlement Agreement; Licensee and AT&T Comcast shall execute and deliver an Unconditional Acceptance of Terms and Conditions and AT&T Broadband Corp. shall execute and deliver a Performance Guaranty Agreement, with additional terms and conditions also contained in the Resolution approving this Settlement Agreement. The City Commission shall consider approval of this Settlement Agreement concurrently with its consideration of the FCC Form 394 Application for the Change of Control of Licensee at its August 22, 2002 City Commission meeting. This Settlement Agreement is not binding on any party unless and until the City Commission approves the Change of Control submitted by AT&T Corp. and AT&T Comcast Corporation. In the event any of the documents referenced in this paragraph are not executed or delivered to the City within twenty (20) calendar days of the date hereof, the consent granted by the City Commission shall be null and void and the FCC 394 Application submitted by AT&T shall be deemed denied, without any further action by the City or the City Commission. 2. Pass Through/Rate Increases. Licensee agrees that it shall not pass-through to subscribers, as may be permitted pursuant to 47 U.S.C. 542, any of the payments required to be made in this Settlement Agreement, nor any of the costs incurred under Section E (2) of the Settlement Agreement related to the Change of Control. Further, Licensee shall not consider, nor include any of the payments required to be made in this Settlement Agreement in any rate increase to the subscribers in the City for any services it provides. E. GENERAL ISSUES. 1. General Release. Other than Section A (4) of this Settlement Agreement, Licensee and the City agree that the consideration set forth in this Settlement Agreement is good Page 17 of 27 02- 917 and adequate consideration, the receipt of which is hereby acknowledged. Further, Licensee and the City agree that the consideration made in this Settlement Agreement is in full and final settlement of all consumer service issues, all compliance claims of the City under the Ordinance or License Agreement and any and all legal fees and costs incurred as a result of the Settlement Agreement. City agrees that as of the date of this Settlement Agreement, Licensee is in full compliance with its obligations under the Ordinance and License Agreement. This general release shall become effective upon acceptance and execution of this Settlement Agreement and all related documents thereto. 2. Cost Recovery. Licensee agrees that within thirty (30) days of approval of this Settlement Agreement by the City and the City's consent to the Change of Control of the Licensee, Licensee shall pay to the City reasonable expenses incurred by the City in considering and processing the FCC Form 394 Application, including but not limited to consulting and legal costs, the total of which shall not exceed the amount of Twenty Thousand Dollars ($20,000.00) plus an additional Five Thousand Dollars ($5,000.00) for engineering fees. 3. Entire Understanding. This Agreement contains the entire understanding between the parties hereto with respect to the Disputes and Change of Control, and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, except as herein contained. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing and approval by the City Commission and Licensee. 4. Authority. The Licensee and the City each warrant and represent that: Page 18 of 27 02- 917 7 (a) all necessary approvals and authority to enter into this Settlement Agreement and to bind it thereto have been obtained; and (b) the person executing this Settlement Agreement on its behalf has express authority to do so and, in so doing, to bind it hereto; and (c) the execution and delivery of this Settlement Agreement and the performance of its obligations hereunder do not contravene or conflict with any judgment, order, decree, contract, law, regulation or other obligation binding upon it or its assets; and (d) it has the power and authority to perform all of its obligations hereunder. 5. Notice. All notices required to be given hereunder shall be in writing and sent by registered or certified mail, return receipt requested, to the appropriate party at its address set forth below, or at such other address as may be given by notice hereunder. Where notice is sent by mail to the City, it shall be deemed given only upon receipt by the City Manager. If to Licensee: Ms. Ellen Filipiak V. P. General Manager 2501 NW 145th Avenue, Suite 200 Miramar, FL 33027 With copies to: Legal Department AT&T Broadband 188 Inverness Drive West Englewood, CO 80112 If to the City: City of Miami Attn: City Manager 3500 Pan American Drive Miami, FL 33133 with copies to: Leibowitz & Associates, P.A. Matthew L. Leibowitz, Esq. 1 S.E. 3rd Avenue, Suite 1450 Miami, FL 33312 6. Governing Law. The parties agree that the Settlement Agreement is governed by Page 19 of 27 02- 917 01 the laws of the State of Florida, with jurisdiction in the State Courts of Miami -Dade County of the State of Florida. 7. Counterparts. This Settlement Agreement may be signed in several counterparts which, taken together, shall constitute one and the same instrument. 8. Invalidity of Sections. Should any provision of this Settlement Agreement be held invalid by a court of competent jurisdiction or rendered a nullity by Federal or State legislative or regulatory action, the remaining provisions of this Settlement Agreement shall remain in full force and effect. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Page 20 of 27 02- 917 IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first above written. STATE OF FLORIDA ss: COUNTY OF BROWARD MIAMI TELE -COMMUNICATIONS, INC. By: 11 L Its: &I -h ( OY plll��SIetw Date: Pia I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, the foregoing instrument was acknowledged before me by A-11en G�L/Pi��c the -�y &A&6 )c,uT of Miami Tele-Communications, Inc., a corporation, freely and voluntarily under authority duly vested in ftWher by said corporation and that the seal affixed thereto is the true corporate seal of said corporation. he is personally known to me or who has produced his/her driver's license as identification. WITNESS my hand and seal in the county and state last aforesaid this -;�-7 day of August, 2002. gyp , ANN L. LEFnK MY COMMISSION # DD 061234 orIF00 EXPIRES: January 26,2006f 1.80@3NOTARlY FL Notary Service & 80nd% Inc. ota�rJy Public SEAL Printed Name of Notary Public 2 My ommiss>on Expires Page 21 of 27 02- 91 '7 31, j IN WITNESS WHEREOF, the parties having caused this Agreement to be executed by their respective and authorized officers. CITY OF MIAMI ATTEST: Page 22 of 27 02- 917 ATTACHMENT 1 AT&T Broadband's Risk Assessment and Deposit Policy Effective May 28, 2002 Starting May 28, 2002, AT&T Broadband will implement a risk assessment and deposit program. AT&T Broadband will conduct a risk assessment on all new or reconnecting customers. Customers requesting service will be asked for their name, address and Social Security Number. (If a customer is unwilling to provide his or her Social Security Number, we will attempt to match that person using only his or her name and address. AT&T Broadband's inability to locate applicant information resulting from the customer's unwillingness to provide a Social Security number may adversely affect the risk assessment). AT&T Broadband may utilize information available from credit reporting agencies to make the risk assessment. Based on our review, the customer may be required to provide a deposit to secure payment of his or her account. The deposit levels have been set initially at $50.00 and $100.00. All customers who are required to pay a deposit will be sent a letter, which will include information about our assessment and how to obtain additional information from any consumer reporting agencies utilized, as well as the Terms on which AT&T Broadband will hold, apply and refund deposits. The letter will be mailed within fifteen (15) business days following the deposit assessment. Detailed information about the Terms will be available to customers during the sales call upon request. AT&T Broadband shall not discriminate in the application of its Risk Assessment and Deposit Policy on the basis of race, color, sex, creed, religion, nationality, sexual orientation, or marital status. Any credit checks conducted by either AT&T Broadband or its third party credit bureau will be done in conformance with the requirements of all applicable state or federal laws. TERMS ON WHICH SECURITY DEPOSITS WILL BE HELD AND APPLIED BY AT&T BROADBAND If you have provided AT&T Broadband with a security deposit in connection with your subscription to cable television or cable internet services, AT&T Broadband will hold your deposit in an unsegregated interest-bearing account as a general liability of the company holding the local franchise to serve the area in which you reside. During each calendar year, the account will ac rue interest at a rate determined during the last week of the immediately preceding October equal to the effective rate (the effective annual yield) for new issues of one year Treasury bills (or if there are no such new issues, a representative average of the bid and asked yields for Treasury obligations having approximately one year remaining until maturity), Page 23 of 27 02- 917 rounded to the nearest whole percentage. Interest on the deposit will be calculated monthly and credited to your service account. The interest rate for 2002 is 2%. The deposit will be held and interest will accrue until either (i) the service is disconnected or (ii) the balance charged to the service account has been paid in full, within forty (40) days of the due date, for each six (6) consecutive months. Upon either event, interest will be calculated and added to the amount on deposit. For active customers, the deposit and accrued interest will then be applied to the account in the seventh month. Any remaining credit will be applied to the account in the either month, unless customer requests a refund of the remaining deposit. For disconnecting customers, the deposit and accrued interest will be applied to the balance, if any, owing on the account after any equipment has been returned and any amount remaining on the deposit will be refunded. A check in the amount of the refund will be mailed within 4-6 weeks of the date of (i) or (ii) above. The interest rate on deposits that are held on January 1 of any calendar year will be adjusted to the new rate determined in accordance with the first paragraph above. If you have any questions regarding the status of your account or deposit, please call the Customer Service number shown on your monthly statement. [Strikethrough represents deleted language/Bold represents additional language] Page 24 of 27 02- 917 ATTACHMENT 2 Modifications of Section 11-18 of the City of Miami Cable Systems Ordinance As Referenced in the Settlement Agreement Attached to Resolution o2- 9-*sof the City (o) Upon a Subscriber's request, a Licensee shall provide a credit to the account of the Subscriber, prorated on a daily basis, with a minimum of one (1) day, for any period of two (2) hours or more within a twenty-four (24) hour period during which a Subscriber experienced an interruption of service or substantial impairment of service, whether due to a System Malfunction or other cause within the Licensee's control. No Fefiinds credits shall be due for service interruptions directly related to a rebuild, upgrade or routine maintenance of the Cable System which is planned, noticed properly to the City and Subscribers, and occurs during a time other than between 6:00 p.m. and 11:00 p.m. and lasts for four (4) hours or less. Licensee shall provide a separate notice of the credit policy, via a bill stuffer, to subscribers on an annual basis. Licensee's failure to comply with this subsection shall result in a fine in the amount of Three Hundred Dollars ($300) per violation, per day or part thereof that the violation continues. (g) Subscribers who have experienced two (2) one (1) missed installation or service appointments due to the fault of Licensee shall receive installation free of charge. If the installation was to have been provided free of charge or if the appointment was for service or repair, the Subscriber shall receive a credit on the next bill of not less than Twenty Dollars ($20). Licensee's failure to comply with this subsection shall result in a fine in the amount of One Three Hundred Dollars ($4300) per violation, per day or part thereof that the violation continues. [Strikethrough represents deleted language/Bold represents additional language] Page 25 of 27 02- 917 ATTACHMENT 3 Modification of Section 11-17(b)(14) of the City of Miami Cable Systems Ordinance As Referenced in the Settlement Agreement Attached to Resolution vz-*7 of the City (14) west, -a An annual report on the number of personnel employed by the Licensee by area of responsibility, including any ethnic reporting pursuant to Equal Employment Opportunity Commission requirements. [Strikethrough represents deleted language/Bold represents additional language] Page 26 of 27 02- 917 ATTACHMENT 4 Modification of Section 11-15 of the City of Miami Cable Systems Ordinance As Referenced in the Settlement Agreement Attached to Resolution oz-*7of the City (c) A Licensee shall provide a minimum of one (1) Access Channel, and facilities dedicated to the exclusive use of the City and such other capital support for public, educational and/or governmental use as required in a License Agreement and allocated at the sole discretion of the City. The Licensee shall provide one upstream Channel for each Access Channel then used by the City to the headend, as technically necessary for the operation of Access Channels referred to herein or as otherwise required by a License Agreement. The City may add one (1) additional PEG Channel upon ninety (90) days written notice to Licensee. Licensee shall begin broadcasting of the second PEG Channel pursuant to the terms and conditions set forth in Section 11-15 of the ordinance, as amended. The City may increase the number of PEG Channels to a number not to exceed five (5), so long as a threshold use requirement is met for the second PEG Channel each Channel the City then utilizes. In order to request an further additional PEG Access Channels, the second existing PEG Access Channell must be programmed at least eight (8) hours a day with non -repetitive, locally produced programming, Monday through Friday, for a minimum of six (6) consecutive weeks. For purposes of calculating the eight (8) hour programming requirement, the live cablecast of all Commission and Board meetings, in their entirety, shall be included for no more than one Channel. Character -generated programming shall not be included for purposes of calculating the programming requirement. Once the threshold is met and the second PEG Channel-addi ieml ^ eeess Channel given, the second initial PEG Channel must maintain the threshold requirement. After attaining the threshold requirement, if the second initial PEG Channel ^ eeess Channel fails to meet the threshold for four (4) consecutive months, the additional Access Channel may be reclaimed by Licensee upon sixty (60) calendar days written notice. Under no circumstances shall the City lose the right to its first and second PEG Channels initial Aeeess Channel. However, at all times after a ween third PEG Channel ^ eeess Channel shall maintain the threshold requirement a minimum of fifty percent (50%) of the time, to be measured every four (4) months based on usage for the preceding twelve (12) months. In addition, a Licensee shall cablecast to all Subscribers in the City of Miami all Miami -Dade County public, educational, and/or government Channels provided however that the total number of Access Channels shall not exceed the number set forth in a License Agreement. [Strikethrough represents deleted language/Bold represents additional language] Page 27 of 27 02— 917 m Resolution R-02-917 Exhibit C 02- 917 0 EXHIBIT C PERFORMANCE GUARANTY AGREEMENT CITY OF MIAMI, a municipal corporation of the State of Florida, ("City"), and AT&T BROADBAND CORP., a Delaware corporation ("Guarantor"), on behalf of itself and Licensee. WHEREAS, Miami Tele-Communications, Inc., d/b/a AT&T Broadband is the Licensee under a License Agreement granted pursuant to Resolution No. 00-489 and the documents thereunder (collectively the "License"); and WHEREAS, at its meeting of August 22, 2002, the City Commission approved the change in ultimate control of the Licensee in adopting Resolution No. R-02-917 ("Change in Control"); and WHEREAS, the Consent and Unconditional Acceptance of Change in Control of Licensee approved by Resolution No. R-02-917 require Licensee to furnish a Guaranty, with an acceptable guarantor securingerformance of Licensee's obligations under the Ci of P g City Miami, Cable Systems Ordinance No. 11936, including any lawful amendments to Ordinance No. 11936, ("Ordinance"), the Settlement Agreement attached to the Resolution consenting to the Change of Control as Exhibit B, between the City and Licensee, as settlement of the disputes contained therein ("Settlement Agreement"), the License Agreement approved by Resolution 00- 489 and any and all agreements related thereto; and WHEREAS, Guarantor has agreed to deliver this Guaranty in conjunction with the City's consent to the Change in Control. NOW, THEREFORE, in consideration of the above recitals, the covenants, and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantor hereby agrees as follows: 0 1. The Guarantor, on behalf of itself and Licensee, (a) guarantees unconditionally to 02- 917 A Resolution approving the Change in Control, the Unconditional Acceptance, the Ordinance and any and all related agreements and resolutions, except to the extent that any term, promise, covenant, condition, provision or obligation is unenforceable under applicable law, and (b) agrees to cause Licensee to comply with all obligations of the "Grantee" (as defined in the documents referenced herein) to be performed as provided in the License Agreement and Ordinance, except to the extent that any term, promise, covenant, condition, provision or obligation is unenforceable under applicable law. 2. The guarantees set forth in paragraph 1 above shall be effective contemporaneously with the Change in Control of the Licensee and shall remain in effect until the first to occur of, (a) the termination of the License unless the termination occurred as a result of a breach by the Licensee, in which case this Guaranty would not terminate with respect to breaches of the Licensee occurring prior to the date of termination; or (b) the termination, substitution, or cancellation of this Guaranty upon the City's prior written approval of a substitute guarantor, which approval shall not be unreasonably withheld. 3. Except as set forth in paragraph 2 above, no termination, amendment, waiver, or modification of this Guaranty or any of its terms or provisions shall be effective unless it is set forth in a written instrument signed by the Guarantor and the City. 4. Guarantor covenants and agrees that Guarantor may be joined in any action by the Licensee or the City and that recovery may be had against Guarantor in such action without the City first bringing an action in court against Licensee. Guarantor also agrees that, in any jurisdiction, it will be conclusively bound by the judgment in any such action by City against 2 02- 917 the City the due and punctual performance by Licensee of each and every term, promise, covenant, condition, provision and obligation contained in the License Agreement, the Resolution approving the Change in Control, the Unconditional Acceptance, the Ordinance and any and all related agreements and resolutions, except to the extent that any term, promise, covenant, condition, provision or obligation is unenforceable under applicable law, and (b) agrees to cause Licensee to comply with all obligations of the "Grantee" (as defined in the documents referenced herein) to be performed as provided in the License Agreement and Ordinance, except to the extent that any term, promise, covenant, condition, provision or obligation is unenforceable under applicable law. 2. The guarantees set forth in paragraph 1 above shall be effective contemporaneously with the Change in Control of the Licensee and shall remain in effect until the first to occur of, (a) the termination of the License unless the termination occurred as a result of a breach by the Licensee, in which case this Guaranty would not terminate with respect to breaches of the Licensee occurring prior to the date of termination; or (b) the termination, substitution, or cancellation of this Guaranty upon the City's prior written approval of a substitute guarantor, which approval shall not be unreasonably withheld. 3. Except as set forth in paragraph 2 above, no termination, amendment, waiver, or modification of this Guaranty or any of its terms or provisions shall be effective unless it is set forth in a written instrument signed by the Guarantor and the City. 4. Guarantor covenants and agrees that Guarantor may be joined in any action by the Licensee or the City and that recovery may be had against Guarantor in such action without the City first bringing an action in court against Licensee. Guarantor also agrees that, in any jurisdiction, it will be conclusively bound by the judgment in any such action by City against 2 02- 917 Licensee (wherever brought) as if Guarantor were a party to such action, even though Guarantor is not joined as a party in such action. This Guaranty may be enforced against Guarantor pursuant to this Section 4 only upon a default by Licensee; provided that Guarantor is given prior notice of such breach or default and an opportunity to cure such breach or default in accordance with the License as if Guarantor was the Licensee thereunder. 5. This Guaranty shall be deemed to have been made in the State of Florida. Guarantor consents to the jurisdiction of the courts of the State of Florida or to the United States District Court, Southern District, for the State of Florida. The rights and liabilities of City and Guarantor shall be determined in accordance with the laws of the State of Florida. 6. No delay on the part of the City in exercising any power or right hereunder shall operate as a waiver thereof. The powers and rights granted to City hereunder may only be waived upon the prior written consent of City, authorized by appropriate municipal action taken at a regular public meeting of the City Commission of City. 7. If any section, subsection, sentence, clause, phrase, or other portion of this Guaranty is, for any reason, declared invalid, in whole or in part, by any court, agency, commission, legislative body, or other authority of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent portion, and such declaration shall not affect the validity of the remaining portions hereof, which other portions shall continue in full force and effect. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 3 02- 9j7 IN WITNESS WHEREOF, the Guarantor on behalf of itself has caused this Guaranty to be executed under seal by its duly authorized representative of the date first above written. (Corporate Seal) K)4 w -JeA'? STATE OF C ) COUNTY OF AR 4P*HeC—' ) AT&T BROADBAND CORP. (Guarantor) By: Name: Title: ss: BEFORE ME, the undersigned authority, personally appeared 3. 1-r- d- , who is known to me personally (or provided proof of identification) and upon being first duly sworn acknowledged that he / she executed the foregoing document freely and voluntarily and for the purpose therein expressed. WITNESS my hand and official seal day of &4 2002. My Commission Expires: 'SI/1105 in the County and State last aforesaid this 2?TL S Notary Public PETER E. BOYDEN Notary Public, State of New Jemoy I.D. No. 2177839 Qualified in Warton County Certificate Filed in Moms Cody My commission expires 511 V2OD5 02- 190 IN WITNESS WHEREOF, the parties having caused this Agreement to be executed by their respective and authorized officers. CITY OF MIAMI N/A N/A DEPUTY GLE N/A 02- 917 AT&T BROADBAND - AT&T COMCAST LICENSE TRANSFER/SETTLEMENT AGREEMENT August 22, 2002 AT&T Broadband is requesting the City's consent to the "Change of Control" of the Miami Tele- Communications, Inc., ("Licensee") cable television license from AT&T Broadband to AT&T Comcast Corporation ("Transferee"). The proposed Transferee is an entity formed by the merger of AT&T Broadband and Comcast Corporation. The City has drafted and proposed a settlement to the Licensee encompassing the following terms and conditions to settle all outstanding violations and non-compliance issues of the Licensee. A. PAST COMPLIANCE. 1. System Upgrade. Licensee shall pay to the City the sum of $549,000 for its failure to complete the upgrade of the Cable System. 2. Customer Service Violations. Licensee shall pay to the City the sum of $72,000 as settlement of all customer service violations. 3. Policies and Practices. Licensee agrees that it will notify, in writing, all subscribers located within the City that Section 10 of the Dispute Resolution Policies has been withdrawn. Licensee agrees that it will notify, in writing, all subscribers located within the City that the Risk Assessment and Deposit Policy has been amended to include non-discriminatory language. 4. Financial Audit. Licensee agrees that the City may perform a financial audit of the Licensee for the period January 1, 1997 through September 30, 2001. B. PUBLIC ISSUES. I . System Completion. Licensee agrees that it shall complete and activate the cable system, in its entirety on or before December 31, 2002. Failure to complete and activate the cable systems will results in Licensee incurring fines and penalties in the amount of $1,000 per day, or any part thereof. 2. Amendments to License Agreement and Ordinance. The City shall modify the Customer Service section of the Ordinance to provide for notification of credits to customers and providing the City with an equal employment opportunity report. 3. Business Center. Licensee shall use its best efforts to open 2 additional business centers within the City. 4. Programming Services. Licensee shall endeavor to offer to all subscribers a diversity of video programming services. Licensee shall provide all leased access programming providers access to Licensee's Basic Tier. Licensee shall endeavor to provide other available minority oriented programming. Page 1 of 3 02- 917 5. Annual Surveys. Licensee and the City may conduct a survey of the customer service performance of the Licensee once per year and a maximum of twice per year. Licensee and the City shall each bear equal portions of the total costs. 6. District Meetings. Licensee and the City shall conduct, on an annual basis, a public meeting for each of the voting districts located within the City. Licensee shall provide 10 spots of thirty-second duration to publicize the meetings. 7. Promotion of Cable Competition. Licensee agrees to comply with all applicable federal and state laws concerning unfair competition, restraint of trade and deceptive trade practices with respect to the provision of cable services. 8. Attomgy General Investigation. Licensee agrees that by consenting to the Change of Control, the City shall not have waived any rights it may have to receive any benefits, for itself or for Licensee's subscribers in the City. 9. Rate Deferral. City acknowledges that Licensee voluntarily deferred a rate increase of $6 per month associated with the rebuild and increased channel offerings for 2 months. 1. Build -out Deferral. Licensee and the City agree that the build -out of the cable system to those areas more commonly known as Virginia Key and Watson Island shall be deferred to January 1, 2006. In consideration for the deferral, Licensee agrees to pay to the City the sum of $390,000. Failure to complete the build -out by January 1, 2006, Licensee shall fines and penalties in the amount of $1,000 per day or any portion thereof. 2. High Speed Internet Service. The City acknowledges that Licensee has begun providing to the subscribers of the City, its High Speed Internet Service. 3. Government Channel(s). Licensee agrees that the City shall from time to time designate additional access sites from which the City can upstream broadcasting of certain governmental meetings and events. (a) Channel Assignment. Licensee agrees that it shall use its best efforts, subject to applicable law, not to re -assign the current City broadcasting on channel 9 on the cable system. (b) Additional PEG Channel. Licensee and the City agree to waive the prerequisite requirements for a second access channel. (c) Programming Guide. Licensee agrees that it shall assist the City in the distribution of a programming guide for the public, educational and government channels of the cable system. 4. I -Net. Licensee shall assist the City in developing a plan for construction, operation and maintenance of an I -Net that would be available for lease to the City. The I -Net would interconnect all government and other public buildings, schools, and facilities designated by the City. Financial Guaranty. Page 2 of 3 02- 917 (a) Licensee and the City agree that the construction bonds posted with the City shall be increased to a combined sum of $1,000,000. Licensee represents and warrants that the Change of Control will not have any adverse financial effect on the cable system, such that Licensee's financial resources necessary to comply with the terms and conditions of the License are adversely affected. Licensee shall provide a Performance Guaranty Agreement from AT&T Broadband, Corp. (b) Off -Balance Sheet Borrowing. Licensee agrees that it nor any of its parent companies or its Affiliates shall engage in the practice of off-balance sheet borrowing. (c) Licensee Debt Obligations. Licensee and AT&T represent and warrant that Licensee will not be an obligor for any debt that may be incurred by AT&T Comcast to meet cash funding requirements of the Merger Agreement. 6. Financial Grant. Licensee shall make a donation in the amount of $70,000 to the Endowment for Youth Program for various after school programs. 7. Technical Assistance. Licensee shall designate a management level employee and a senior level technical employee to be responsible for working with the City to address problems that may arise under the License. 8. (Quarterly Customer Service Meetings. City and Licensee have agreed to an Enhanced Customer Service Plan to commence September 1, 2002 for a 1 year test period. 9. Additional Sites for Provision of Cable Service. Licensee agrees to provide cable service, at no cost to the City, to various additional sites. D. MERGER ISSUES. 1. City Consent to Change of Control. The City shall consent to the Change of Control of the Licensee from AT&T to AT&T Comcast, subject to execution and delivery of a Settlement Agreement, Unconditional Acceptance of Terms and Conditions and a Performance Guaranty Agreement. 2. Pass Through/Rate Increases. Licensee agrees that it shall not pass-through to subscribers, any of the payments or costs incurred as a result of this Settlement Agreement and costs of the Transfer of Control. E. GENERAL ISSUES. 1. General Release. Licensee and the City agree that the consideration set forth in this Settlement Agreement is good and adequate consideration. 2. Cost Recovery. Licensee shall pay to the City reasonable legal and consulting expenses incurred by the City in considering and processing the FCC Form 394 Application, the total of which shall not exceed the amount of $20,000. Page 3 of 3 02- 917 cviiio CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and DATE: Members of the City Commission SUBJECT: FR enez REFERENCES City Manag ENCLOSURES: RECOMMENDATION: JM L 8 2;102 FILE : Request for Change of Control of Cable License from AT&T Broadband, LLC to AT&T Comcast Corp. It is respectfully recommended that the City Commission discuss and consider approval or denial of the change of control of the cable television license granted to Miami Telecommunications, Inc., (the "Licensee") a subsidiary of AT&T Broadband LLC, by Resolution No. 00-489, from AT&T Broadband, LLC to AT&T Comcast Corporation. BACKGROUND: is Pursuant to Ordinance No. 11936 and the License Agreement between the City of Miami and AT&T Broadband, LLC (Resolution 00-489), adopted by the Miami City Commission on June 8, 2000, which provides that no change of control may occur without prior approval of the City Commission, on March 8, 2002, the City of Miami, Florida received an FCC 394 and an Application for City Consent by the City Commission to the proposed change of control of the Miami Tele-Communications, Inc. cable television license from AT&T Broadband, LLC to AT&T Comcast Corporation. • The City has required that the Licensee fulfill its obligations pursuant to the Ordinance, License Agreement and any and all applicable agreements/documents and provide information on the proposed transaction including details on the legal, financial, technical and other qualifications of the proposed transferee and on the potential impact of the transfer on service. Additionally, the City has noticed the Licensee of outstanding violations, which Licensee has not cured or agreed to cure, in a manner approved by the City. The proposed transferee has failed to provide to the City written acceptance, by affidavit, of a) the terms and conditions of the Ordinance, License Agreement and related agreements/documents; and b) its agreement to assume and guarantee the liabilities and performance of Licensee under the terns of the Ordinance, License Agreement and any and all other related agreementstdocuments. 02- 917 C 400 The Honorable Mayor and Members of the City Commission Request for Change of Control of Cable License • from AT&T Broadband, LLC to AT&T Comcast Corp. Page 2 Under FCC Rules, 47 CFR Section 76.502, the City has 120 days, plus any extensions, from the date of submission of a completed FCC Form 394, together with all exhibits, and any additional information required by the License Agreement or applicable state or local law, to act upon an application to sell, assign, or otherwise transfer controlling ownership of a cable system to avoid the Application being approved by operation of law. At the present time, the Licensee has granted an extension of the 120 -day automatic approval period to July 11, 2002. CAG ll! cb 02- 0 0 • • • A CITY OF MIAMI PUBLIC NOTICE OF PROPOSED RESOLUUON City Hall 3500 Pan American Drive Miami, Florida 33133 NOTICE IS HEREBY GIVEN that on Tuesday, July 9, 2002, at a meeting of the City Commission of the City of Miami, Florida, to be held at 9:00 a.m., in the Commission Chambers at the address indicated above, the City Commission will discuss and may consider approval or denial of the change of control of the cable television license granted to Miami Telecommunications, Inc., a subsidiary of AT&T Broadband LLC ("AT&T'), by Resolution No. 00-4.89 from AT&T Broadband to AT&T -Comcast, Inc. The Commission may consider adoption of one of the following Resolutions on first reading: Resolution No: Applicant: AT&T Broadband, LLC Request: A RESOLUTION OF THE MIAMI CITY COMMISSION CONSENTING TO THE CHANGE OF CONTROL OF THE CABLE TELEVISION LICENSE GRANTED TO .MIAMI TELECOMMUNICATIONS, INC., A SUBSIDIARY OF AT&T BROADBAND LLC ("AT&T-'), BY RESOLUTION NO. 00- 489, FROM AT&T TO AT&T-COMCAST, INC. or A RESOLUTION OF THE MIAMI CITY COMMISSION DENYING THE CHANGE OF CONTROL OF THE CABLE TELEVISION LICENSE GRANTED TO MIAMI TELECOMMUNICATIONS, INC., A SUBSIDIARY OF AT&T BROADBAND LLC ("AT&T`% BY RESOLUTION NO. 00- 489, FROM AT&T TO AT&T-COMCAST, INC. c1 n J-00-135 . 6/6/00 11936 ORDINANCE NO. AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING THE "CODE OF THE CITY OF MIAMI, FLORIDA" BY REPEALING APPENDIX A AND REPEALING AND RE-ENACTING CHAPTER 11 ENTITLED, "CABLE TELEVISION" PROVIDING THE TERMS AND CONDITIONS FOR THE OPERATION OF CABLE SYSTEMS AND THE APPLICATION, PROCEDURES AND REQUIREMENTS RELATING TO THE GRANT OF LICENSES FOR THE CONSTRUCTION, INSTALLATION, OPERATION AND MAINTENANCE OF CABLE SYSTEMS EQUIPMENT AND FACILITIES IN, ON, ACROSS, ABOVE OR THAT IN ANY MANNER WHATSOEVER USE THE CITY�S PUBLIC RIGHTS-OF-WAY AND TO ENSURE THAT USE OF THE CITY'S PUBLIC RIGHTS-OF-WAY IS IN THE PUBLIC INTEREST AND IN CONFORMANCE WITH APPLICABLE LAW, PROVIDING FOR CONFLICTS; PROVIDING FOR A SAVINGS CLAUSE A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. • WHEREAS, the City of Miami has under consideration the renewal of its existing cable License Agreement with Miami Tele- Communications, Inc. ("MTCI"), pursuant to the Communications Act of 1934, as amended, 47 U.S.C. para. 521 et seq.; and • 02- 917 WHEREAS, pursuant to Resolution No. 99-126, adopted February Y 16 1999 the Cit Commission consented to and approved the request pursuant to the Agreement and Plan of Restructuring and Merger, dated June 23, 1998, among AT&T Corp. ("AT&T"), a New York corporation ("parent"); Italy Merger Corp., a Delaware corporation and a direct wholly owned subsidiary of parent ("merger sub"); and Tele-Communications, Inc., a Delaware corporation (the "company"), to the extent that such consent was required by the terms of the cable franchise/License agreement and applicable Law, conditioned upon escrow of monetary amounts and execution of the cable franchise/License agreement incorporating the terms and conditions in the binding offer; and WHEREAS, the enactment of the Telecommunications Act of 1996, and recent court precedent construing the scope of municipal • regulatory authority over cable Licenses granted, and applicable changes and developments in cable technology and services have resulted in a changed regulatory environment; and WHEREAS, the City Commission deems it necessary to create this Ordinance to take into account the aforementioned changes and developments and to better ensure that the use of the City Streets by Cable Systems serves the public interest; and WHEREAS, in order to enact this Ordinance in the public Page 2 of 89 02-- 917 C • Q interest, the City Coliumission must effectuate the repeal of Appendix A to the Code of the City of Miami in its entirety; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1.The recitals and findings contained in the Preamble to this Ordinance are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2.Appendix A to Chapter 11 of the Code of the City of Miami is hereby repealed in its entirety. Section 3.Chapter 11 of the Code of the City of Miami, Florida, as amended, is hereby repealed in its entirety. A new Chapter 11 is hereby substituted in lieu thereafter as follows: "Chapter 11 CABLE TELEVISION Section 11-1. Short Title. This Ordinance shall be known and may be cited as the "City of Miami Cable Systems Ordinance." Section 11-2. Definitions. For the purposes of this Ordinance, the following terms, phrases, words and derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The words "shall" and "will" are mandatory, and "may" is permissive. Words not otherwise defined herein or in any License Agreement that might be granted hereunder shall be given the meaning set forth in the Communications Act of 1934, 47 U.S.C. § 521 Page 3 of 89 02- 917 et seq. , and the Cable ConmiunicatioiLs Policy Act of 1964, as amended by the Cable Television Consumer Protection • and Competition Act of 1992, and as amended by the Telecommunications Act of 1996, and as those Acts may hereinafter be amended (collectively the "Cable Act"), and, if not defined therein, the common and ordinary meaning. (a) "Activated Channel" means those Channels engineered at the headend of a Cable System for the provision of services generally available to Subscribers of the Cable System, regardless of whether such services actually are provided, including any Channel designated for public, educational, or governmental use. Channels on which signals flow in the direction from the headend to the Subscriber are referred to as "downstream Channels." Where the signal flows to the headend for re- distribution, it shall be referred to as -an "upstream Channel." (b) "Access Channel" means any Channel on a Cable System set aside without charge by the Licensee for public, educational and/or local governmental use. (c) "Affiliate" means any Person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with a Licensee. • (d) "Analog Channel" means no less than 6 MHz of bandwidth. (e) "Applicant" means any Person submitting an Application within the meaning of this Ordinance. (f) "Application" means any proposal, submission or request to (1) construct and operate a Cable System within the City; (2) transfer a License or control of the License or the Licensee; (3) renew a License; (4) modify a License; or (5) seek any other relief from the City pursuant to this Ordinance, a License Agreement, the Cable Act, or other applicable Law. (g) "Basic Cable Service" or "Basic Service" means any Service Tier which includes the retransmission of local television broadcast signals, and public, Page 4 of 89 02- 917 educational, or governmental Access Channels and such . services as may be defined as basic by applicable Law, as otherwise provided in the License Agreement, during the term of any License granted pursuant to this Ordinance. (h) "Cable Act" means the Communications Act of 1934, 47 U.S.C. §521 et seq. , as that Act has and may hereinafter be amended. (i) "Cable Operator" means any Person or group of Persons who provides Cable Service over a Cable System and directly or through one or more Affiliates owns a significant interest in such Cable System, or who otherwise controls or is responsible for, through any arrangement, the management and operation of such a Cable System. (j) "Cable Service" means the transmission of video or other programming services over a Cable System to Subscribers together with Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming services. To the extent not prohibited by applicable Law, a Licensee agrees that cable Internet services, including, but not limited to Mome, Roadrunner and MediaOne Express, or other similar services, provided by a Licensee, its parent, Affiliates or subsidiaries, over the Cable System shall be deemed • "Cable Services" as permitted under Title VI of the Communications Act of 1934, as amended. • (k) "Cable System," or "System" means any facility consisting of a set of closed transmission paths or other transmission lines and associated signal generation, reception and control equipment that is designed to provide cable service which includes video programming and which is -provided to multiple Subscribers within the City. Such term does not include (1) a facility that serves only to retransmit the television signals of one (1) or more television broadcast stations; (2) a facility that serves Subscribers without using any public rights- of-way; (3) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, 47 U.S.C. §201 et seq., except that such facility shall be considered a Cable System (other than for purposes of Page 5 of 89 02-- 917 Section 621(c) of the Cable Act) to the extent it is used in the transmission of video programming directly to • Subscribers, unless the extent of such use is solely to provide interactive on demand services; (4) an open video system that complies with Section 653 of the Telecommunication- Act of 1996; or (5) any facilities of any electric utility used solely for operating its electric utility systems. The foregoing definition of "Cable System" shall not be deemed to circumscribe the valid authority of the City to regulate the activities of any other communications system or provider of communications services, including but not limited to telephony and open video systems. (1) "City" means the City of Miami, a municipal corporation of the State of Florida, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form. (m) "Commission" means the City Commission of the City of Miami, Florida. (n) "Control of a Licensee or Applicant" means possession of the ability to direct or cause the direction of the management or policies of a Licensee or Applicant, or the operation of the Licensee's System, whether through operational control in whatever manner • exercised or ownership of voting securities, by contract or understanding, or in any other manner. (o) "Fair Market Value" means the price that a willing buyer would pay to a willing seller for a going concern but with no value allocated to the License itself. (p) "FCC" means the Federal Communications Commission, or any successor governmental entity thereto. (q) "License" means the nonexclusive right granted by the City to a Licensee in a License Agreement to construct, maintain and operate a Cable System under, on, and over Streets, roads and any other public ways, rights -of -ways, or easements within the City. The term does not include any license or permit that may be required by this Ordinance or other Laws, ordinances or • Page 6 of 89 02- 917 Q A� regulations of the City for the privilege of transacting and carrying on a business within the City or for . disturbing or carrying out any work on any Street. (r) "License Agreement" means a contract entered into in accordance with the provisions of this Ordinance between the City and a Licensee that sets forth the terms and conditions under which the License shall be exercised. (s) "License Area" means that territory within the corporate limits of the City, as those limits may change from time to time through annexation or contraction, over which the terms of a License Agreement shall extend. (t) "Licensee" means any Person granted a License pursuant to this Ordinance who has entered into a License Agreement with the City. • (u) "Gross Revenues" means all revenues recognized in accordance with Generally Accepted Accounting Principles (GAAP) generated directly or indirectly by the Licensee and, any Affiliates, subsidiaries or parent of the Licensee, provided that such entities are considered Cable Operators as such term is defined herein, from any source whatsoever arising from, attributable to, or in any way derived from the operation of the Cable System to provide Cable Services in the City. Notwithstanding anything to the contrary contained in this subparagraph, Gross Revenues include, but are not limited to, fees charged Subscribers for Basic Service; fees charged Subscribers for any optional, premium, per -Channel or per -program service; fees charged Subscribers for any tier of service other than Basic Service; installation, disconnection, reconnection and change -in-service fees; late fees; leased access fees; revenue from converter, remote, modem or any other equipment rentals; revenues from installation, service and content enhanced internet products and services including, but not limited to, access services and content enhanced services to the extent said services may be considered Title VI services according to applicable Law; revenues from cable guides; advertising revenues allocable to the City based on a percentage of Page 7 of 89 p2- 917 Subscribers in the City divided by the Subscribers in the System (such percentage shall then be multiplied by the total advertising revenue of the System to determine the allocable gross revenue stemming from advertising); and revenues from home shopping Channels or other sources allocable to the City, provided that where certain come shopping Channel or other such revenue is allocable to more than one License area due to common zip codes, the Licensee shall allocate the percentage of revenue to the City which is equivalent to the percentage of the population of the City divided by the total population for the allocable License, areas in question. Gross Revenues shall be the basis for computing the License fee imposed pursuant to Section 11-16 hereof. Gross Revenues shall not include revenues received from programmers and used by Licensee to market or promote a programming service; any revenue received by Licensee for payment in connection with PEG Access or facilities as required by Section 11-15(b); any taxes on services furnished by the Licensee which are imposed upon any Subscriber or user by the state, county, City or other governmental unit and collected by the Licensee on behalf of said governmental unit and which the Licensee passes on in full to the applicable tax authority. However, it is hereby expressly provided that License fees shall be included in the calculation of Gross Revenues. Further, License fees shall not be paid on Subscriber deposits unless and until said deposits are applied to a customer account for services rendered. Notwithstanding anything herein to the contrary, a Licensee shall include in Gross Revenues, subject to License fees, revenues received from any and all Cable Services for which such Licensee,- or any Affiliate, subsidiary or parent of the Licensee pays a License fee to any other jurisdiction, provided that such Cable Service is offered over the Cable System in the City, unless, the City and Licensee otherwise agree to exclude certain revenues from License fees. (v) "Institutional Network" means a dedicated closed network, or an alternative acceptable to the City, for use by the City to provide Cable Services and non - Cable Services for public, educational and governmental use within the City. The network shall be capable of providing one-way, two-way, interactive, and machine -to - machine transfer of audio, video, voice and data signals Page 8 of 89 • 02- 917 U within the network as designated by the City. . (w) "Interconnection" means the electronic connection of two or more Cable Systems for the purpose of sharing public, education and government access programming or transmissions. (x) "Law" means all duly enacted and applicable federal, state, county and City Laws, ordinances, codes, rules, regulations and orders. (y) "Leased Access Channel" means a Channel designated in accordance with Section 612 of the Communications Act, 47 U.S.C. §532, for commercial use by Persons unaffiliated with the Licensee. (z) "Overbuild" means a Cable System constructed to serve Subscribers already served by an existing Cable System. (aa) "Person" means any individual, corporation, partnership, association, joint venture, organization or legal entity of any kind, and any lawful trustee, successor, assignee, Transferee or Personal representative thereof, but shall not mean the City. (bb) "Service Tier" means a category of Cable Service provided by a Licensee and for which a separate charge is made by the Licensee. • (cc) "State -of -the -Art" means that level of technical performance, equipment, components and services more modern than that which has been developed and demonstrated to be generally accepted and used in the cable industry, excluding "tests" involving new products offered for one year or less. The System shall have, at a minimum, the capability. of no less. than the Channel capacity, products and services available from a System serving any similarly sized City or other community in the State of Florida, or other such System owned and operated by the Licensee, its parent, Affiliates or subsidiaries outside the State, except as otherwise set forth in a License Agreement. In no event shall a System having a bandwidth of less than 750 MHZ be considered "State -of -the -Art." Nothing herein shall be Page 9 of 89 02- 917 c ao� construed to require a Licensee to employ any specific transmission technology. • (dd) "Street or Streets" means the surface, the air space above the surface and the area below the surface of any public Street, highway, road, boulevard, concourse, driveway, freeway, thoroughfare, parkway, sidewalk, bridge, tunnel, park, waterway, dock, bulkhead, wharf, pier, court, lane, path, alley, way, drive, circle, easement, or any other public right-of-way or public place, including public utility easements dedicated for compatible uses, or any other property in which the City holds any kind of property interest or over which the City exercises any type of lawful control, and any temporary or permanent fixtures or improvements located thereon, as may be ordinarily necessary and pertinent to construct and operate a Cable System; but shall not include City -owned buildings or City private property. (ee) "Subscriber" means any Person who lawfully receives Cable Service delivered over the Cable System. (ff) "Subscriber Base" means the total number of subscribers who receive Cable Service delivered to individual homes, dwelling units or multiple dwelling units, excluding such multiple dwelling units billed on a bulk -billing basis. • (gg) "System Malfunction" means any Cable System equipment, facility or signal failure or malfunction that results in the loss of satisfactory service on one (1) or more Channels to one (1) or more Subscribers. A malfunction is major if it affects fifty (50) or more Subscribers. (hh) "Transfer of a License" means any transaction in which (1) any ownership or other interest in a Licensee or its Cable System is transferred from one Person or group of Persons to another Person or group of Persons so that Control of a Licensee or control of Litensee's System is transferred; or (2) the rights and/or obligations held by a Licensee under a License Agreement are transferred or assigned to another Person, group of Persons or business entity. A Transfer shall be Page 10 of 89 u%- -917 U � considered "pro forma" only when it involves a Transfer to a Person, group of Persons or business entity wholly . owned or controlled by the Licensee and shall not result in a change in the control or ownership of the Licensee or Licensee's System. "Two -Way Capability" means the incorporation ,(ii) into a Cable System of all appropriate design and engineering characteristics and features, including all necessary equipment, which shall be installed and operational, so that two-way transmission, including but not limited to addressability, over the System can be implemented and activated. (jj) "Video Channel" or "Channel" means a portion of the electromagnetic frequency spectrum which is used in a Cable System and which is capable of delivering a television Channel, including the associated audio signal. Section -11-3. Intent and Purposes. (a) It is the intent of the City and the purpose of this ordinance to promote the public health, safety, and general welfare by providing for the grant of one (1) or more Licenses for the construction and operation of a Cable System, and the provision of Cable Service, within the City; to provide for the regulation, to the extent provided for by Law, of each Cable System within the City in the public interest; to provide for the payment of fees and other valuable consideration by a Licensee to the City for the use of Streets and rights-of-way by its Cable System; to promote the widespread availability of quality Cable Service to City residents and businesses, the City, and other public institutions; to encourage the development of cable and other communications technologies and Cable Systems as a means of communication between and among members of the public, City businesses, the City, and other public institutions; to promote competitive cable rates and services; to promote the safe and efficient use of City Streets; to enhance and maximize the full potential of Streets used by Cable Systems; and to encourage the provision of a diversity of information sources to City residents, businesses, the community, the City, and other public { Page 11 of 89 02- 917 institutions by cable technology. (b) Recognizing the continuing development of • communications technology and uses, it is the policy of the City to encourage experimentation and innovation in the development of Cable System uses, services, programming and techniques that shall be of general benefit to the community to the extent all such experiments and innovations are consistent with applicable Laws. Section 11-4. Grant of Authority; License Required. (a) The City may grant one or more Licenses in accordance with this Ordinance. (b) No Person may construct or operate a Cable System over, on, or under public Streets, or provide Cable Service, in the City without a License granted by the City unless otherwise permitted to do so by Law, and no Person may be granted a License without having entered into a License Agreement with the City pursuant to this Ordinance and other such ordinance of the City as may be applicable. (c) Unless otherwise authorized by Law, any License granted pursuant to this Ordinance is solely for the provision of Cable Service. The City's authority to regulate and/or authorize the use of the Streets of the City for the provision of non -cable video or other telecommunications services (including the offering of dark fiber or connectivity) and/or any service not included under Title VI of the Communications Act of 1934, as amended, as of the effective date of this Ordinance, shall not be waived, nor shall such authorization to use the Streets of the City for the provision of other than Cable Services be granted, under a License granted pursuant to this Ordinance. Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than Two Thousand Dollars ($2,000) per violation, per day or part thereof that the violation continues. Section 11-5. License Characteristics. Page 12 of 89 • 02- 917 V CJ (a) A License authorizes use of City Streets and . rights-of-way, for installing, on poles or underground, cables, wires, lines, optical fiber, underground conduit, ducts, conductors, amplifiers, vaults, and other facilities as necessary and pertinent to operate a Cable System to serve Subscribers within the City, but .foes not expressly or implicitly authorize the Licensee to provide service to, or install cables, wires, lines, underground conduit, or any other equipment or facilities upon private property without owner consent (except for use of compatible easements pursuant to Section 621 of the Cable Act, 47 U.S.C. § 541(a)(2)), or to use publicly or privately owned conduits without a separate agreement with the owners. (b) A License is nonexclusive, and shall not expressly or implicitly preclude the issuance of other Licenses to operate Cable Systems within the City, or affect the right of the City to authorize use of City Streets to other Persons to operate Cable Systems or for other purposes as it determines appropriate. (c) All privileges prescribed by a License shall be subordinate to any prior lawful occupancy of the Streets, and the City reserves the right to reasonably designate where a Licensee's facilities are to be placed within the Streets. Such designation may include, but not be limited to, consideration of the availability of space in the rights of way. (d) No Transfer of a License shall occur without the prior consent of the City and unless Application is made by the Licensee, and City approval obtained, pursuant to Section 11-24 hereof. (e) A License granted to an Applicant pursuant to this Ordinance to construct, operate and maintain a Cable System within the City, shall be deemed to constitute both a right and an obligation on the part of the Licensee to provide the services and facilities of a Cable System as required by the provisions of this Ordinance and the License Agreement. The License Agreement shall constitute all of the terms and conditions of the License that are finally negotiated and Page 13 of 89 • 02- 917 c aa� agreed upon by the City and Licensee. Licensee shall be bound by all documents or other portions of an Application, including oral representations made by an Applicant, or its representatives, before the City Commission, which the City relies upon as inducement to granting an initial, renewal, transfer or modification of a License, or taking other action relating to the License, and which are integrated by the City and Licensee as an exhibit to the License or amendment thereof. (f) Notwithstanding anything to the contrary, in the event that Licensee, its parent, Affiliate or subsidiary elects to offer to Subscribers video programming services through an "open video system", Licensee shall remain subject to all terms and conditions of a License granted pursuant to this Ordinance. Section 11-6. Licensee Subject to Other Laws, Police Power. (a) A Licensee shall at all times be subject to and shall comply with all applicable and lawful federal, state and local Laws. A Licensee shall at all times be subject to all lawful exercise of the police power of the City. (b) Subject to applicable Law, except as may be specifically provided in this Ordinance or under the terms of a License Agreement and subject to the Cable Act, the failure of the City, upon one or more occasions, to exercise a right or to require compliance or performance under this Ordinance or a License Agreement shall not be deemed to constitute a waiver of such right or a waiver of compliance or performance. Section 11-7. Interpretation of License Terms; Conflicts. (a) The provisions of this Ordinance at the time of the grant of a License (initial or renewal) shall apply to a License Agreement as if fully set forth in the License Agreement, and the express terms of this Ordinance shall prevail over conflicting or inconsistent provisions in a License Agreement unless such License Agreement expresses an intent to amend or modify a requirement of this Ordinance. Page 14 of 89 02- 917 LWn ac (b) Except as to matters which are gover.Lied by . federal Law or regulation, a License Agreement shall be governed by and construed in accordance with the Laws of the State of Florida. Section 11-8. Applications for Grant, Renewal, Modification or Transfer of Licenses. (a) A written Application shall be filed with the City for (1) grant of an initial License; (2) renewal of a License in accordance with Section 626 (a) - (g) of the Communications Act, 47 U.S.C. 546; (3) modification of a License Agreement; (4) Transfer or change of control of a License; or (5) any other relief from the City pursuant to this Ordinance or a License Agreement. (b) To be acceptable for filing, a signed original of the Application shall be submitted together with seven (7) copies, be accompanied by the required non-refundable Application filing fee as set forth in Section 11-8(i) hereof, conform to any applicable request for proposals, and contain all required information. All Applications shall include the names and addresses of Persons authorized to act on behalf of the Applicant with respect to the Application. (c) All Applications accepted for filing shall be made available by the City for public inspection. (d) An Application for the grant of an initial License may be filed pursuant to a request for proposals issued by the City or on an unsolicited basis. The City, upon receipt of an unsolicited Application, may issue a Request for Proposals. If the City elects to issue a Request for Proposals upon receipt of an unsolicited Application, the Applicant may submit an amended Application in response to the Request for Proposals, or may inform the City that its unsolicited Application should be considered in response to the Request for Proposals, or may withdraw its unsolicited Application. An Application which does not conform to the reasonable requirements of a Request for Proposals may be considered non-responsive and denied on that basis. • Page 15 of 89 02- 917 (e) An Application for the grant of an initial License shall contain, at minimum, the following information (1) Name and address of the Applicant and identification of the ownership and control of the Applicant, including: the names and addresses of all Persons with five percent (5k) or more ownership interest.in the Applicant, including the names and addresses of parents or subsidiaries holding such ownership interests directly or indirectly; the Persons who control the Applicant; all officers and directors of the Applicant; and any other Cable System ownership or other communication ownership interest of each named Person; provided that in the case of an Application for a renewal or transfer of a License, the information regarding Cable System ownership or other communication ownership interest shall be provided upon written request of the City; (2) An indication of whether the Applicant, or any Person controlling the Applicant, or any officer, or director or Person with five percent (50) or more ownership interest in the Applicant, has been adjudged bankrupt, had a cable License revoked, or been found by any court or administrative agency to have violated a security or antitrust Law, or to have committed a felony, or any crime involving moral turpitude; and, if so, identification of any such Person and a full explanation of the circumstances; provided that in the case of an Application for renewal or transfer of a License, a Licensee shall provide such information upon written request; (3) A demonstration of the technical, legal and financial ability of the Applicant to Page 16 of 89 . 02- 917 construct and/or operate the proposed Cable System, including identification of key personnel; (4) A copy of any agreement covering the License area, if existing, between the Applicant and any public utility providing for the use of any facility of the public utility, including, but not limited to, the use of utility poles, lines or conduits. In the case of a Transfer pursuant to Section 11-24 hereof, Licensee shall only be required to provide evidence of the assignability of such agreements; (5) In the case of an Application for an initial License, a statement prepared by a certified public accountant or duly authorized financial officer of the Applicant regarding the financial ability of the Applicant to complete the construction and operation of the Cable System proposed; (6) A description of the prior experience of the Applicant in Cable System ownership, construction and operation, and identification of communities in which the Applicant or any Person having a controlling interest in the Applicant or having more than a ten percent (10%) ownership interest in the Applicant has, or has had, a cable franchise or License or any interest therein; provided that in the case of an Application for a transfer of a License, a Licensee shall provide such information upon written request; (7) Upon reasonable request of the City, the Applicant shall provide copies of any franchise or License agreements entered into by Applicant, its parent, Affiliate or subsidiary; Page 17 of 89 • 02- 917 (8) A description of the physical facilities proposed, including Channel capacity, performance characteristics, headend, and • access facilities; upon request, the Applicant shall provide information on technical design; (9) In the case of an Application for an initial grant of a License, where applicable, a description of the construction of the proposed Cable System, including an estimate of plant mileage and its location, the proposed construction schedule, a description, where appropriate, of how services shall be converted from existing facilities to new facilities, and information on the availability of space in conduits including, where appropriate, an estimate of the cost of any necessary rearrangement of existing facilities; (10) For informational purposes, the proposed rate structure, including projected charges for each Service Tier, installation, converters, and other equipment or services, and the ownership interest of the Applicant in any proposed program services to be delivered over the Cable System; (11) A demonstration of how the proposal of the Applicant shall reasonably meet the future cable -related needs and interests of the community; (12) A description of any Cable Services offered by the Applicant or its parent, Affiliate or subsidiary, and Applicant's plan with respect to the availability of services to Subscribers in the City; (13) Upon request, for information purposes only, a description of any non -Cable Services offered by the Applicant or its Page 18 of 89 • 02- 917 u parent, Affiliate of the Licensee availability of Subscribers in the O or subsidiary and plan with respect to the such services to City; (14) Upon request, for information purposes only, a description of any non -Cable Services offered by the Applicant or its parent, Affiliate or subsidiary in any other community and a copy of the terms and conditions pursuant to which Applicant offers such non -Cable Services in any other community; (15) A proposal by Applicant to offer discount rates to qualified senior citizens, consistent with Section 623(e) (1) of the Cable Act; (16) In the case of an Application for an initial License or the transfer of a License, where the transferee is not a publicly traded company, pro forma financial projections for the first five (5) years of the License term, including a statement of projected income, and a schedule of planned capital additions, with -all significant assumptions explained in notes or supporting schedules; (17) If an Applicant proposes to provide Cable Service to an area already served by an existing cable Licensee, the identification of the area where the Overbuild would occur, the potential Subscriber density in the area which would encompass the Overbuild, and the ability of the Streets to accommodate an additional System; (18) In the case of a renewal or transfer Application, any other information as may be reasonably necessary to demonstrate compliance with the requirements of this isPage 19 of 89 02- 01'7 Ordinance and information that the City may reasonably request of the Applicant that is relevant to the consideration of the City of the Application; and (19) An affidavit or declaration of the Applicant or authorized officer certifying the truth and accuracy of the information in the Application, acknowledging the enforceability of Application commitments, and certifying that the proposal meets all federal and state Law requirements. (f) An Application for modification of a License Agreement shall include, at minimum, the following information: (1) The specific modification requested; (2) The justification for the requested modification, including the impact of the requested modification on Subscribers and others; (3) A statement whether the modification is sought pursuant to Section 625 of the Cable Act, 47 U.S.C. §545, and, if so, a demonstration that the requested modification meets the standards set forth in 47 U.S.C. §545; (4) Any other reasonable information necessary for the City to make an informed determination on the Application for modification; and (5) An affidavit or declaration of the Applicant or authorized officer certifying the truth and accuracy of the information in the Application, and certifying that the Application is consistent with all federal and state Law requirements. Page 20 of 89 • 02- 917 � ]l 0 • C3 (g) An Application for renewal of a License shall comply with the requirements of Section 11-23 hereof. (h) An Application for approval of a Transfer of a License shall comply with the requirements of Section 11- 24 hereof. (i) To be acceptable for filing, an Application shall be accompanied by a non-refundable filing fee in the following amount, as appropriate: (1) For a new or initial License: $25,000 (2) For renewal of a License: $10,000 (3) For a Transfer of a License other than a pro forma Transfer) : $10,000 (4) For a pro forma Transfer of a License: $ 5,000 (5) For modification of a License Agreement pursuant to 47 U.S.C. § 545: $10,000 (6) For any other relief: $ 5,000 The purpose of the filing fee is to defray a portion of the cost to the City in processing an Application. Such fee shall be credited against amounts due under Section 11-9(f) herein. The filing fee is therefore intended to be a charge incidental to the awarding or enforcing of a License within the meaning of Section 622(g)(2)(D) of the Cable Act, 47 U.S.C. § 542 (g) (2) (D) , and may not be deducted from the License fee imposed in a License Agreement and shall not be.passed through to Subscribers. Section 11-9. Grant of Licenses. (a) The City may grant a License for a period not to exceed ten (10) years. (b) The City may make the grant of a License Page 21 of 89 02- 917 r, v conditioned upon the completion of construction within a reasonably prescribed time or upon the performance of • other specific obligations which are to be set forth in the License Agreement, specifying that failure to comply with the condition shall cause the License to become null and void or may require the Licensee to pay liquidated damages to the City as specified in a License Agreement. (c) In evaluating an Application for a License, the City may consider, among other things, the following factors: the technical, financial, and legal qualifications of the Applicant to construct and operate the proposed System; the adequacy of the proposed construction arrangements, facilities, equipment, and services based on the public convenience, safety and welfare; the experience of the Applicant in constructing and operating Cable Systems and providing Cable Service in other communities, if any; the ability of City Streets to accommodate the proposed System; the potential disruption to users of City Streets and any resultant inconvenience to the public; and whether the proposal shall meet reasonably anticipated community needs and serve the public interest. Evaluation by the City shall not be based on the content of the programming the Applicant proposes to provide. (d) The City shall hold a public hearing to consider an Application or Applications for a License. • The Applicant(s) shall be notified of the hearing and shall be given an opportunity to be heard. Based upon the Application(s), the testimony presented at the public hearing, any recommendations of the City or staff, and any other information relevant to the Application(s), the City shall decide by resolution whether to grant or deny a License Application(s) and decide the terms and conditions of any License(s) granted. (e) After complying with the above requirements, the City Commission shall approve or disapprove the proposed License Agreement by resolution, or may direct that it be subject to further negotiation. (f) An Applicant for an initial License hereunder shall reimburse the City for all reasonable expenses incurred by the City in considering and processing the Page 22 of 89 • 02- 91'7 u 1C3 Application, including but not limited to costs and expenses resulting from accrued City in-house staff time, out of pocket expenses or administrative costs, and . consulting and legal costs, less the amount of the filing fee set pursuant to Section 11-8(i). Within thirty (30) calendar days from the date of the resolution approving or denying the initial grant of the License thereof by the City Commission, the City shall bill the Applicant for the amount of the processing fee and its method of calculation. If the processing fee is not received by the City within thirty (30) calendar days of date of the bill, the City shall notify such Applicant and the Applicant shall pay a late fee at the rate of eighteen percent (18%) per annum of the amount of the unpaid or underpaid fee provided, however, that such rate does not exceed the maximum amount allowed under applicable Law. If said fee is not received in total by the City within sixty (60) calendar days of the date of the bill, the City shall notify such Applicant and, if applicable, the License shall be revoked. This processing fee is intended to be a charge incidental to the awarding or enforcing of a License within the meaning of Section 622 (G) (2) (d) of the Cable Act, 47 U.S.C. §542 (G) (2) (d) , and may not be deducted from the License fee imposed in a License agreement and shall not be passed through to Subscribers. • • Section 11-10. Insurance; Surety; Indemnification. (a) A Licensee shall be required by the City to maintain, and by its acceptance of the License, specifically agrees that it shall maintain, throughout the entire term of the License including any renewals thereof, insurance coverage insuring the Licensee with respect to the construction, operation and maintenance of the Cable System, and the conduct of the Licensee's business in the City, as described below and as required to satisfy all requirements of Florida Law. (1) Comprehensive General Liability Insurance including contractual liability, explosion, collapse and underground property damage, bodily injury and broad form property damage, personal and advertising injury and products/completed Page 23 of 89 02- 917 Cr operations coverage. The Licensee shall carry limits with a combined single limit of no less than Three Million Dollars • ($3,000,000) per occurrence naming the City as an additional insured. The Licensee shall require any subcontractors to provide adequate insurance and provide proof of insurance to the City as well. (2) The Licensee shall carry Workers Compensation and Employers Liability Insurance in compliance with Florida Statute. The Licensee shall require any subcontractors to provide workers compensation insurance for all of the subcontractors' employees. (3) Automobile Liability Insurance covering all owned, hired and non -owned vehicles used in connection with any activities arising out of this agreement. Such insurance shall afford coverage with a combined single limit of no less than One Million Dollars ($1,000,000) per occurrence. The Licensee shall require any subcontractors to provide automobile liability insurance for all of the vehicles used by subcontractors arising • out of the License. (b) All insurance policies shall be with insurance companies authorized to do business in the State of Florida and shall be with insurance companies with a minimum Best's Rating of AV11, or an equivalent rating, and Financial Size Category Rating of X (ten). (c) A Licensee shall keep on file with the City certificates of insurance which certificates shall indicate evidence of payment of the required premiums and shall indicate that the City, its officers, boards, Commission, commissioners, agents and employees are listed as additional insureds, and that this insurance is primary over any other insurance or self-insurance program available to the City whether collectible or not. In the event of a potential claim such that the City Page 24 of 89 • 02- ) claims insurance coverage, Licensee shall immediately respond to all reasonable requests by the CiLy for information with respect to the scope of the insurance . coverage. (d) All insurance policies shall name the City, as additional insured and shall further provide that any cancellation or reduction in coverage shall not be effective unless sixty (60) calendar days prior written notice thereof has been given to the City. A Licensee shall not cancel any required insurance policy without submission of proof that the Licensee has obtained alternative insurance satisfactory to the City which complies with this Ordinance. (e) A Licensee shall, at its sole cost and expense, indemnify, hold harmless, waive subrogation against and defend the City, its officials, boards, commissions, commissioners, agents, and employees, against any and all third party claims, suits, causes of action, proceedings, judgments for damages or equitable relief, and costs and expenses arising out of the construction, maintenance or operation of its Cable System by the Licensee, its agents or employees, the conduct of Licensee's business by the Licensee, its agents or employees in the City, or the granting of a License Agreement to the Licensee or in any way arising out of the Licensee's enjoyment or exercise of a License granted hereunder, regardless of whether the act or omission complained of is authorized, allowed or prohibited by this Ordinance or a License Agreement. This provision includes, but is not limited to, the reasonable attorneys' fees of the City incurred in defending against any such claim, suit or proceedings; and claims arising out of copyright infringements or a failure by the Licensee to secure consents from the owners, authorized distributors, or providers of programs to be delivered by the Cable System, claims arising out of Section 638 of the Cable Act, 47 U.S.C. 558, and claims against the Licensee for invasion of the right of privacy, defamation of any Person, firm or corporation, or the violation or infringement of any copyright, trade mark, trade name, service mark or patent, or of any other right of any Person, firm or corporation. The City shall give the Licensee written notice of any claim or of the commencement of any action, suit or other proceeding • Page 25 of 89 .. 02- 90 covered by the indemnity in this Section. In the evert any such claim arises, the Licensee shall have the obligation and duty to defend the City and any other . indemnified party hereunder; provided, however, Licensee may not agree to any settlement of claims affecting the City without the City Attorney's approval. If the City Attorney finds ,:hat separate representation to fully protect the interests of the City is necessary, Licensee shall consult with the City Attorney on counsel that is acceptable to the City Attorney. If Licensee is unwilling or unable to select counsel acceptable to the City Attorney, Licensee shall pay all expenses incurred by the City in defending itself with regard to any action, suit or proceeding subject to this indemnification. The City's expenses shall include all out of pocket expenses, attorney's fees and costs of the City Attorney or his/her assistants, or any employees of the City, outside attorneys, or other agents. Not withstanding anything to the contrary contained in this subparagraph, the obligation of the Licensee shall not extend to any claims caused by the gross negligence of the City, its officials, boards, commissioners, agents or employees, or to claims arising from Licensee's provision of Access Channels for public, educational and/or governmental use pursuant to Section 11-15 hereof and a License Agreement, to the extent such claims relate to programming and content on such Channels, over which Licensee has no editorial control nor exercises administrative control. (f) Notwithstanding anything to the contrary, a Licensee shall be responsible for all actions of the subcontractors and shall agree to indemnify and hold harmless the City for any and all claims against the City or arising out of the activity of such subcontractors. Section 11-11. Security Fund. (a) The City shall require in a License Agreement that, prior to the License becoming effective, the Licensee shall post with the City a security fund. Such fund .may be in the form of a cash deposit, letter of credit, or performance bond as determined by the City in its sole discretion or as set forth in a License Agreement. The security fund shall be used to ensure the Page 26 of 89 • 02- 917 Licensee's faithful performance of and compliance with all provisions of this Ordinance, the License Agreement, and other applicable Law, and compliance with all orders, . permits and directions of the City, and the payment by the Licensee of any claims, liens, fees, or taxes due the City which arise by reason of the construction, operation or maintenance of the System. T'_.e amount of the security -fund shall be the amount that the City determines, under circumstances existing at the time, that is necessary to protect the public, to provide adequate incentive to the Licensee to comply with this Ordinance and the License Agreement, and to enable the City to effectively enforce compliance therewith, but in no event less than Two Million Dollars ($2,000,000). The License Agreement shall provide for the procedures to be followed with respect to the security fund. Neither the posting of the cash deposit or filing of an indemnity bond or any form of performance bond with the City, nor the receipt of any damages recovered by the City thereunder, shall be construed to excuse faithful performance by the Licensee or limit the liability of the Licensee under the terms of its License for damages, either to the full amount of the fund or otherwise. (b) The rights reserved to the City with respect to the security fund are in addition to all other rights of the City, whether reserved by this Ordinance or authorized by other Law or the License Agreement, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right the City may have. Section 11-12. Construction Bond. (a) The City shall require in a License Agreement that, prior to any Cable System construction, upgrade, rebuild or other significant work in the Streets a Licensee shall establish. in the favor of the City a construction bond in an amount specified in the License Agreement or other authorization as necessary to ensure the faithful performance of the Licensee of the construction, upgrade, rebuild or other work, but in no event shall the amount of the bond be less than Five Hundred Thousand Dollars ($500,000). Licensee shall at all times comply with Chapter 54 of the Code of the City Page 27 of 89 • 02- 917 of Miami. (b) In the event a Licensee subject to such a • construction bond fails to complete the Cable System construction, upgrade or other work in the Streets in a safe, timely and competent manner in accord with the provisions of the License Agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the City as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the Licensee, or the cost of completing or repairing the System construction, upgrade or other work in the Streets, plus a reasonable allowance for attorneys' fees, up to the full amount of the bond. The City may also recover against the bond any amount recoverable against the security fund pursuant to Section 11-11 hereof where such amount exceeds that available under the security fund. (c) The License Agreement may specify that upon completion of the Cable System construction, upgrade, rebuild or other work in the Streets and payment of all construction obligations of the Cable System to the satisfaction of the City, the City may eliminate the bond or reduce its amount. However, the City may subsequently require an increase in the bond amount for any subsequent construction, upgrade, rebuild or other work in the • Streets. (d) The construction bond shall be issued by a surety having a minimum rating of A-1 in Best's Key Rating Guide, Property/Casualty Edition, or an equivalent rating acceptable to the City; shall be subject to the approval of the City Attorney; and shall provide that this bond may not be canceled, or allowed to lapse, until sixty (60) calendar days after receipt by the City, by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not to renew. (e) The rights reserved by the City with respect to any construction bond established pursuant to this Section are in addition to all other rights and remedies the City may have under this Ordinance, the License Page 28 of 89 • 02- 917 • cod � Agreement, or at Law or equity. Section 11-13. Minimum Facilities and Services. (a) The following minimum requirements for facilities and services apply to all Licenses granted by the City. The City may require in a License Agreement that a Licensee exceed these minimum requirements where it determines, under circumstances existing at the time of the grant of the License, that the additional requirements are necessary to meet the future cable related needs of the City and interests or to serve the public interest. (1) Any Cable System that commences construction, including but not limited to initial construction, rebuild, upgrade, or reconstruction after the effective date of this Ordinance shall have a minimum capacity of at least 750 MHZ providing no less than seventy-eight (78) activated Video Channels or its digital equivalent, including Two-way Capability as defined in Section 11-2(ii) hereof. The construction, rebuild, upgrade or reconstruction of any Cable System must be completed within a twenty- four (24 ) month construction schedule. A License Agreement may provide for a larger minimum Channel capacity requirement as well as upgrades during the term of a License. Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than One Thousand Dollars ($1,000) per violation, per day or part thereof that the violation continues. (2) The City may require in a License Agreement that a Licensee provide Access Channels, facilities and other support for public, educational and/or governmental use, in excess of the Page 29 of 89 minimum requirement of this Ordinance. Licensee's failure to comply wits: the terms of a License Agreement with respect to the provision of Access Channel facilities and other support for public, educational and/or governmental use shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than One Thousand Five Hundred Dollars ($1,500) per violation, per day or part thereof that the violation continues. (3) A Cable System shall provide Leased Access Channels as required by federal Law. (4) If required by the terms of a License Agreement, a Licensee shall, at minimum, provide at least one cable outlet and shall provide Cable Service, including Basic and Cable Programming Service Tier, with the exception of digital and premium/pay-per-view, or its equivalent, without charge, to each and every floor of all public buildings including, but not limited to City buildings, parks, community and day-care centers, and any • other public building designated by resolution of the City Commission. In addition, Licensee agrees to provide one (1) outlet of cable service without charge to each and every floor of all buildings of the City that may be constructed, opened or annexed within the City after the effective date of the License Agreement, subject to the service policy set forth below. In new locations and remodels of existing locations, Licensee shall have access to "pre - wire." Such Cable Service shall at a minimum include the Basic Cable Service tier, and all programming offered without additional charge on the cable programming Service Tier offered by Page 30 of 89 • 02- 90 Licensee over the Cable System. Licensee's failure to comply with this subsection shall result in imposition of . fines to be paid by the Licensee to the City in the amount of not less than Five Hundred Dollars ($500) per violation, per day or part thereof that the violation continues. (5) If required by the terms of a License Agreement, Licensee shall, upon request, provide to each and every floor of all public buildings including, but not limited to City buildings, parks, community and day-care centers, and any other public building designated by resolution of the City Commission, with, at minimum, one (1) free connection to an on-line service provided by Licensee. Such on-line service will provide access to the Internet. Upon request, each City building, park, community center and day- care center within the City, and any other public building designated by resolution of the City Commission, shall receive, at minimum, one (1) free cable modem which will be allowed to be networked, and free, unlimited access to the on-line service. All services requested shall be provided not later than one (1) year after Licensee makes commercially available an on-line service for personal computers within the City. Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than Five Hundred Dollars ($500) per violation, per day or part thereof that the violation continues. (6) Licensee shall, at a minimum, provide at least one cable outlet and shall provide Cable Service, including Basic and Cable Programming Service Tier, with the Page 31 of 89 ;'. 02_ C, exception of digital and premium/pay-per- view, or its equivalent, without charge, to each floor, not to exceed three (3) • floors, in all public and private schools (as defined by, and which receives funding pursuant to, Title I of the Elementary and Se-^ondary Education Act of 1965, 20 U.S.C. 421(a) et seq., as amended), (grades K-12). Licensee will make arrangements for each school to receive school materials for teachers and other facility administrators, to the extent they are available, that explain the educational applications of the broadband Cable Systems and services offered on the Cable System. The materials will be provided to all connected schools. Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than Five Hundred Dollars ($500) per violation, per day or part thereof that the violation continues. (7) Licensee shall upon written request from the school, provide all schools (as defined in (6), above) within the City • which receive Cable Service with, at minimum, one (1) free connection to an on-line service provided by Licensee. Such on-line service will provide access to the Internet. Upon request, each connected school shall receive, at minimum, one (1) free cable modem which will be allowed to be networked, and free, unlimited access to the on-line service. All services requested shall be provided not later than one (1) year after Licensee makes commercially available an on-line service for personal computers within the City. Additional cable modems and operational support and services (for example, assisting schools in setting up and maintaining reliable Page 32 of 89 • nc)- W 4 C) Intcrnet connections) shall be provided to connected schools upon written request . and at the actual and direct costs of Licensee. In addition, Licensee shall sponsor local workshops in each region to educate teachers and other facility administrators about its on-line service and to provide connected schools, City parks, community centers and day-care centers with an opportunity for hands-on training. Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than Five Hundred Dollars ($500) per violation, per day or part thereof that the violation continues. (8) A Cable System shall include an "emergency alert" capability, which shall permit the City Manager or designated representative, to the extent permitted by applicable law, to remotely override the audio of all Channels on the Cable System or to allow for video crawl over all Channels. • (9) The City may seek the use of a portion of the Cable System's bandwidth for collecting data from Subscribers for purposes including but not limited to a fire, police or other alarm system, or reading water meters, provided that the following conditions are met: 1) Licensee has excess capacity on its System, at each location the City wishes to utilize at the time.of the request and, as of the date of the City's request, has not allocated such excess capacity, as evidenced by a written agreement with a third party for such bandwidth for provision of services during the twelve (12) months following the date of City's request; 2) the City purchases the necessary equipment according to the • Page 33 of 89 02- 917 C §W� reasonable technical specifications provided by Licensee; 3) attachment of the necessary equipment is performed by the Licensee owning the Cable System, and the City reimburses the labor and material cost of such attachment to said Licensee at the direct, actual costs to Licensee; 4) the City pays to the Licensee the direct and actual costs of the bandwidth usage, but in no event to exceed the lowest rate offered by the Licensee to an unaffiliated third party for similar bandwidth usage; and 5) no sooner than one (1) year after City commences use of the bandwidth, a Licensee may thereafter reclaim the excess bandwidth, upon no less than one hundred twenty (120) calendar days notice, if it plans to provide an additional product or service to its customers utilizing said bandwidth within six (6) months of reclaiming the bandwidth, provided that City shall have a right of first refusal for use of the bandwidth on terms and conditions equal to those at which the Licensee proposes to offer the capacity to a third party. To the extent a Licensee is providing an • Institutional Network for the City, at no cost to the City, such provision may be in lieu of the Licensee's obligations under this Section. (10) A Licensee shall make available to its Subscribers equipment capable of decoding closed circuit captioning information for the hearing impaired. (11) The Cable System operator shall maintain equipment capable of providing standby powering for headend transportation and trunk amplifiers for a minimum of two (2) hours. The equipment shall be constructed so as to automatically notify the cable office when it is in operation Page 34 of 89 • and to automatically revert to the standby mode when the AC power returns . All utility safety- regulations must be followed to prevent a standby generator from powering the "dead" utility line, with possible injury to an unwitting lineman. (b) Most Favored Nation. (1) Pursuant to the requirements of a License Agreement, a Licensee shall provide, at a minimum, the same facilities, services, products and benefits available on any System serving any other similarly sized city or other community in the State of Florida, or other such conuminities outside the State, owned and operated by the Licensee, its parent, Affiliate or subsidiary. (2) Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than One Thousand Five Hundred Dollars ($1,500) per violation, per day or part thereof that the violation continues. (c) Universal Service. • Upon request and payment of all applicable charges and provided that the requesting Person grants the Licensee access to his or her premises in order to furnish, maintain, and continue to offer Cable Service to that Person, a Licensee shall, throughout the term of a License, offer any Person at his or her place of residence or place of business within the License Area, all Cable Services distributed over the Cable System, except as otherwise set forth in a License Agreement. Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than Five Hundred Dollars ($500) per violation, per day or part thereof that the violation continues. • (d) Upon Licensee's acquisition of facilities in any City Right -of -Way, or upon the annexation to the City of any area in which Licensee owns or operates any Page 35 of 89 02- 917 L to facility, Licensee shall, at the City's request, submit to the City a statement describing all facilities • involved, whether authorized by License, permit, franchise or other prior right, and specifying the location of all such facilities to the extent Licensee has possession c� such information. Such facilities shall immediately be subject to the terms of Licensee's License granted pursuant to this Ordinance. (e) Pursuant to the requirements of a License Agreement, in the event Licensee offers cable Internet services over its Cable System in the City, it shall, taking into account technical feasibility, provide access to its cable modem platform to providers of Internet access and on-line services on comparable terms and conditions to those terms and conditions on which access is provided by Licensee, its parent, Affiliate or subsidiary in any other community. Licensee shall comply with all lawful requirements with respect to access to Licensee's cable modem platform for providers of Internet access and on-line services. (f) A Licensee granted a License under this Ordinance shall make a proposal to the City for the installation, operation and maintenance of or provide funding for an Institutional Network ("I -NET"). The I- NET shall, at minimum, take into consideration the interconnection of all government and other public • buildings, schools, or Persons as designated by the City, with minimum technical facilities as shall be specified subject to negotiation between the City and the Licensee. A Licensee may provide the City, subject to City approval, with an equivalent of an I -NET, based on current technology, in lieu of the obligation set forth herein. (g) inhere an I -NET already exists. in the City,'an Applicant for a License shall provide the City with a capital grant in an amount which represents the cost of an Institutional Network, or, at the City's sole option, alternative facilities, equipment and support, including but not limited to a new Institutional Network, in satisfaction of Licensee's obligation to provide the City with an I -NET pursuant to this Ordinance. Page 36 of 89 n o _ 4 1 17 Section 11-14. Technical Standards. (a) Any Cable System within the City shall at . minimum meet the technical standards of the FCC or other applicable federal, state, county or City technical standards, including any and all applicable rules, regulations, codes, and standare3 as hereinafter amended or adopted. All television signals .transmitted on a Cable System shall include any closed-circuit captioning information for the hearing impaired. Antennas, supporting structures, and outside plants used in the System shall be designed to comply with all generally accepted industry practices and standards and with all federal, state, county and City ordinances, rules and regulations, including but not limited to the City Zoning Code. (b) All construction, installation and maintenance of the Cable System shall comply with federal and state codes, as well as the National Electrical Safety Code, the National Electric Code, the South Florida Building Code, all local codes and ordinances and any and all applicable rules, regulations and codes, as hereinafter may be amended or changed. (c) At the times specified in the License Agreement or as required by FCC rules, the Licensee shall perform, at its expense, proof of performance tests designed to demonstrate compliance with the requirements of this Ordinance, the License Agreement, and FCC requirements. The Licensee shall provide, upon written request, the proof of performance test results to the City within ten (10) calendar days after completion. The City shall have the right to inspect the Cable System facilities during and after construction to ensure compliance with the requirements of the License Agreement, this Ordinance, and FCC standards. (d) The City may require any other tests as specified in a License Agreement, or required by applicable Law or regulation, or where there have been extensive complaints made, or where there exists other demonstrative evidence which in the reasonable judgment of the City casts doubt upon the reliability or technical quality of the Cable System to be performed at the Page 37 of 89 02-- 917 expense of the Licensee; provided that if the results of ,such tests indicai.e that Licensee is in compliance with the requirements of this Ordinance and/or the License • Agreement, the expenses incurred by the Licensee in conducting said tests shall be borne by the City. The Licensee shall provide the test results to the City within ten (10) calendar days of completion of the proof of performance or other tests. (e) The Licensee shall provide the City ten (10) calendar days advance written notice when a proof of performance test required in subsections (c) and (d) above is scheduled, in order that the City may have an observer present. (f) A Licensee shall not design, install or operate its facilities in a manner that shall interfere with the signals of any broadcast station, the facilities of the City, the facilities of any public utility, the Cable System of another Licensee, or individual or master antennas used for receiving television or other broadcast signals. In the event any such interference is discovered, Licensee shall take all actions necessary to remedy the problem as quickly as is technically feasible. (g) In any License granted pursuant to this Ordinance, a Licensee shall agree to maintain that level of technology to satisfy the State -of -the -Art as defined • in Section 11-2(cc), subject to qualifications, conditions, and terms that may be expressly identified in a License Agreement, if any..Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than One Thousand Five Hundred Dollars ($1,500) per violation, per day or part thereof that the violation continues. (h) Licensee shall provide Access Channels, equipment and facilities, and capital support, in accordance with Section 11-15, as well as such other benefits and services required by a License Agreement. Licensee's failure to comply with this subsection shall result in imposition of fines to be paid by the Licensee to the City in the amount of not less than One Thousand Five Hundred Dollars ($1,500) per violation, per day or Page 38 of 89 . part thereof that the violation continues. (i) In the event that the City Commission . determines that it is in the public interest of the residents of the City to renew or approve the Transfer of a License where the Licensee is not in compliance with the requirements of this section at the time of the grant, the City may agree in an agreement, or an amendment to a License Agreement, to a program whereby the Licensee is permitted a specified period of time, not to exceed twenty-four (24) months, to come into compliance. However, the City's approval of any such plan shall be contingent upon Licensee's agreement to provide the City and any Subscribers with fines, refunds, credits or service vouchers as liquidated damages for the harm suffered due to Licensee's non-compliance. The City may grant extension of the time period herein, for good cause shown. Section 11-15. Public Education and Government Support. (a) It is the purpose and intent of the City to require that all Licensees provide Access. Channels, facilities, equipment and support sufficient to meet the needs and interests of the community with respect to public, education and government activities. (b) A Licensee granted a License pursuant to this • Ordinance shall provide to the City, a grant per Subscriber, as represented in the Subscriber Base as defined in Section 11-2(ff), per month for PEG capital support, as set forth in a License Agreement. The actual amount of the per Subscriber, per month charge shall be determined based upon the City's needs as identified in a projected budget to be prepared by the City Manager and submitted to Licensee not later than September 30 of each year during the term of the License Agreement. • (c) A Licensee shall provide a minimum of one (1) Access Channel, and facilities dedicated to the exclusive use of the City and such other capital support for public, educational and/or governmental use as required in a License Agreement and allocated at the sole discretion of the City. The Licensee shall provide one upstream Channel for each Access Channel then used by the Page 39 of 89 02- 917 City to the headend, as technically necessary for the operation of Access Channels referred to herein or as otherwise required by a License Agreement. The City may • increase the number of PEG Channels to a number not to exceed five (5), so long as a threshold use requirement is met for each Channel the City then utilizes. In order to request an additional PEG Access Channel, the existing PEG Access Channel(s) must be programmed at least eight (8) hours a day with non -repetitive, locally produced programming, Monday through Friday, for a minimum of six (6) consecutive weeks. For purposes of calculating the eight (8) hour programming requirement, the live cablecast of all Commission and Board meetings, in their entirety, shall be included for not more than one Channel. Character -generated programming shall not be included for purposes of calculating the programming requirement. Once the threshold is met and an additional Access Channel given, the initial Access Channel(s) must maintain the threshold requirement. After attaining the threshold requirement, if the initial Access Channel fails to meet the threshold for four (4) consecutive months, the additional Access Channel may be reclaimed by Licensee upon sixty (60) calendar days written notice. Under no circumstances shall the City lose the right to its first initial Access Channel. However, at all times after a second Access Channel is provided to the City, the initial Access Channel shall maintain the threshold requirement a minimum of fifty percent (50t) of the time, to be measured every four (4) months based on usage for the preceding twelve (12) months. In addition, a Licensee shall cablecast to all Subscribers in the City of Miami all Miami -Dade County public, educational, and/or government Channels provided however that the total number of Access Channels shall not exceed the number set forth in a License Agreement. (d) During the term of the License, the Licensee shall provide, as specified in a License Agreement or otherwise agreed to, such equipment, facilities and technical support as the City Commission may determine is useful for the production and cable casting of programming on the public, education and government Channels. Applications for initial grants, renewals or transfers of Licenses shall include a proposal to provide such support. Page 40 of 89 is (e) As may be required in a License Agreement, a Licensee shall tape or cablecast live events held in the . City as may be designated by the City subject to no less than four (4) weeks advance notice in writing to the Licensee. The number of events designated by the City hereunder shall be no 'Less than twenty-four (24) in any given calendar year. A License Agreement may provide for a maximum number of designated events. Unless specified by the City, the live cablecast of a Commission or Board meeting shall not be counted as a designated event. (f) Applications for an initial or renewed License may, and at the request of the City, shall include proposals for the provision of an Institutional Network interconnecting City, educational institutions, and/or other public facilities as designated by the City from time to time. (g) Applications for an initial License shall include a proposal for the Interconnection of Licensee to any or all other Cable Systems operating within the County for purposes of providing or sharing PEG Access Channels. In the case of an Application for renewal or transfer of a License, Applicant shall include in its Application a statement outlining the status of the Interconnection of Licensee's Cable System to any and all Cable Systems operating within Miami -Dade County. 10 (h) A License may provide for additional financial grants in lieu of or in addition to some or all of the facilities, equipment, and services referenced in this Section. (i) A Licensee shall agree that the facilities, equipment, monetary grant, and all other support to be provided by a Licensee pursuant to this Section, and as set forth in a License Agreement constitute capital costs which are required by the License to be incurred by Licensee for public, educational, or government access facilities within the meaning of Section 622(g)(2)(C) of the Cable Act, 47 U.S.C. §542(g)(2)(C), that such grant does not constitute a License fee or tax within the meaning of Cable Act, state Law, City Code of the City of Miami, or a License Agreement; and that the Licensee Page 41 of 89 • 02- 917 shall waive, and will not assert in any proceeding, any claim to the contrary. The City shall use the facilities, equipment, monetary grant and all other • support to be provided by Licensee pursuant to this Section in a manner consistent with Section 622(g)(2)(C) of the Cable Act. Section 11-16. License Fee. (a) A Licensee, as compensation for the privilege granted under a License for the use of the Streets of the City to construct and operate a Cable System to provide Cable Services in the City, shall pay to the City a License fee in an amount up to a maximum of either (1) five percent (5t) of the Licensee's Gross Revenues derived directly or indirectly from the operation of its Cable System within the City during the term of its License pursuant to Section 11-2(u) hereof; or (2) in the event the Cable Act or other applicable Law is amended to permit the City to assess a License fee of a greater amount than that specified in (1) above, the Licensee agrees to pay to the City the new amount after a public hearing in which the public and Licensee are given an opportunity to comment on the impact of the higher fee. Moreover, Licensee shall conclude any such agreement with respect to a fee increase with the City prior to finalizing an agreement with Miami -Dade County. (b) Licensee's payment of the License fee to the • City shall be reduced only by that amount the Licensee is required to pay Miami -Dade County pursuant to any cable License, License or ordinances of the County. Notwithstanding anything to the contrary, Licensee shall pay to the City the full amount of all fees to which it is entitled pursuant to part A of this Section, on revenues not expressly included in the definition of Gross Revenues " pursuant to Chapter 8 of the Code of Miami -Dade County, or as such Chapter may be amended. (c) A Licensee shall pay the License fee due to the City on a quarterly basis. Payment for each quarter shall be made to the City not later than thirty (30) calendar days after the end of each calendar quarter. (d) A Licensee, shall file with the City, on a Page 42 of 89 • S . 02- 917 � 1 C" quarterly basis with the payment of the License fee, a financial statemei,t setting forth the computation of Gross Revenues used to calculate the License fee for the . preceding quarter and a detailed explanation of the method of computation. The statement shall include but not be limited to identification of all revenue streams directly or indirectly connected with the Cable System, in accordance with the definition of Gross Revenues, Section 11-2(u), whether or not involved in License fee computation. The statement shall be certified by a certified public accountant or the chief financial officer or other duly authorized officer of the Licensee. The Licensee shall bear the cost of the preparation of such financial statements. • (e) Subject to applicable Law, no acceptance by the City of any License fee payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim the City may have for additional- sums payable. (f) The License fee payment is not a payment in lieu of any other tax, fee or assessment. (g) The City may, from time to time, and upon reasonable notice, inspect and audit any and all books and records of the Licensee relevant to the determination of Gross Revenues and the computation of License fees due, and may re -compute any amounts determined to be payable under the License. If, as a result of the audit, the City determines that the Licensee has underpaid the quarterly License fees owed in an amount equal to or exceeding two percent (2t) of the License fees actually paid based on components of Gross Revenues as specifically defined herein,the cost of the audit shall be paid by the Licensee to the City within thirty (30) calendar days of receipt of demand for payment, unless Licensee can show the audit is materially incorrect. A Licensee shall make all books and records necessary to satisfactorily perform the audit readily available to the auditors in Miami -Dade County, for inspection and copying or in the alternative, Licensee shall pay all incremental costs and fees incurred by the City for the City to perform the audit at a location outside of Miami -Dade Page 43 of 89 02- 917 r, I (."- County. A Licensee shall provide any and all materials within thirty (30) calendar days of receipt of a request from the City. • (h) In the event that a License fee payment is not received by the City on or before the due date set forth in Subsection (c) above, or is underpaid, the Licensee shall pay a late charge of eighteen percent (189.0 per annum of the amount of the unpaid or underpaid License fee payment, provided, however, that such rate does not exceed the maximum amount allowed under Florida Law. Any such failure to remit payment on a timely basis, after written notice and failure to cure, shall be considered a material violation of this Ordinance and any License granted pursuant hereto. Any interest and/or late charges paid by Licensee is intended to be a charge incidental to the enforcing of a License within the meaning of Section 622 (g)(2)(D) of the Cable Act, 47 U.S.C. §542 (g)(2)(D), and may not be deducted from the License fee imposed by this Ordinance or any License Agreement nor passed through to Subscribers. (i) When a License terminates for any reason, the Licensee shall file with the City within ninety (90) calendar days of the date its operations in the City cease, a financial statement, certified by the chief financial officer of the Licensee, showing the Gross Revenues received by the Licensee since the end of the previous fiscal year. Adjustments shall be made at that time for License fees due to the date that the Licensee's operations ceased. (j) The Licensee's use of City private property for the placement or attachment of equipment used in the provision of Cable Services (e.g., generators, power supply units, concrete environmental closures (CEC), etc.) shall be in accordance with City policies and procedures. Section 11-17. Reports and Records. .(a) The Licensee shall submit reports to the City quarterly according to the following schedule: January through March are due on or before April 25, April Page 44 of 89 • 02- 917 through June are due on or before July 25, July through September are due on or before October 25, and October through December are due on or before January 25 of each . year. The quarterly report shall include, but not be limited :.o: (1) Number of homes passed, number of cable plant miles, number of new installs, number of disconnects, and net result of new installs and disconnects. (2) Customer service and repair telephone statistics, broken down by month, indicating the number of calls received, number of calls abandoned, number of calls receiving a busy signal, percentage of total calls for which a busy. signal was received, average duration of each call handled by a customer service representative, average length of time each caller waits before speaking directly to a customer service representative and number of customer service representatives staffed to handle telephone calls. (3) To the extent compiled by the Licensee in the normal course of its business, statistics by month for the number of total standard installations performed, number of standard installations performed within seven (7) calendar days, number of service interruptions, number of planned service interruptions, number of service interruptions by day part (1 a.m. to 6 a.m., 6 a.m. to 6 p.m., 6 p.m. to 1 a.m., or, upon request of the City, based on shorter measurement intervals as Licensee has available), number of service interruptions by duration, number of service interruptions responded to within twenty four (24) hours, number of other service problems responded to Page 45 of 89 • 02- 917 c within thirty six (36) hours, preventative measures to reduce or • eliminate service interruptions, and any other information which may be reasonably required to monitor the Licensee's compliance with this chapter. A Licensee m:..y comply with the requirements of this subsection by providing to the City a copy of the actual complaint and/or service interruption logs) kept by Licensee. (4) Revenue infprmation, including, but not limited to: Number of Subscribers for each type of Cable Service offered, and the Gross Revenue from all sources attributable to the operations of the Cable System by the Licensee, its Parent, Affiliate or subsidiary in the City of Miami, stating separately by category each source and the amount of revenue attributable thereto. (b) Within six (6) months of the close of its fiscal year, the Licensee shall provide an annual report to the City that includes the following information: (1) A summary of the activities of the • previous year in development of the System, including but not limited to, products and services, video and nonvideo, initiated or discontinued, policy changes enacted during the previous year, number of Cable Subscribers for each tier or type of service or product (including gains and losses), homes passed, and miles of cable distribution plant in service. The summary shall also include a comparison of any construction, including System upgrades, during the year with any projections previously provided to the City, as well as rate and charge increases and/or decreases for the previous fiscal year. The report shall Page 46 of 89 • n2- 9i7 provide a comparison to other Systems operated by Licensee, its parent, Affiliate, or subsidiary sufficient to . determine Licensee's compliance with its obligation pursuant to this Ordinance and the License Agreement. (2) An annual financial report to include a statement of sources of revenues for the Licensee, or the smallest operational unit closest to the level of the Licensee for which data is available, and Licensee's parent; provided that the City may request, in writing, and Licensee shall provide, additional information at the System or License level, as reasonably necessary. The Licensee shall provide an audited financial report if Licensee has a report in its normal course of business. If not, the statements shall be certified by the chief financial officer of the Licensee. The financial report shall include notes to the financial statements that specify all significant accounting policies and practices upon which it is based. (3) Where applicable, a copy of updated maps • depicting the location of all trunk lines and feeder lines and associated devices in the City .to the extent such locations have changed. Upon request of the City, such maps shall be provided in digitized form at the expense of the Licensee. (4) A summary of written Subscriber or resident complaints, identifying the number and nature of complaints and their disposition, including an annual summary of statistics provided in the quarterly report. Where complaints involve recurrent System problems, the nature of each problem and the corrective measures taken shall be identified. More detailed information concerning complaints shall Page 47 of 89 i U�W - be submitted upon written request of the City. 5 ( Upon written request, a summary of the a number of service interruptions, number of planned service interruptions, and number of service interruptions by duration, along with preventative measures to eliminate reoccurrence. (6) Upon written request, if the Licensee is a corporation, a list of officers and members of the board of directors; the officers and members of the board of directors of any parent corporation; and if the Licensee or parent corporation stock or ownership interests are publicly traded, a copy of its most recent annual report. (7) Upon written request, if the Licensee is a partnership, a list of the partners, including any limited partners, and addresses; and if the general partner is a corporation, a list of officers and members of the board of directors or the corporate general partner, and the officers and directors of any parent corporation; and where the general partner or parent corporation ownership interests are publicly traded, a copy of its most recent annual report. (8) Upon written request, a list of all Persons holding five percent (5%) or more ownership or otherwise cognizable interest in the Licensee pursuant to the Cable Act and 47 C.F.R. 76.501. (9) A copy of the rules and regulations of the Licensee applicable to Subscribers of the Cable System. (10) A report on the number of senior citizen, economically disadvantaged or disabled Page 48 of 89 0 02- 9t7 Subscribers receiving any rate discounts pursuant to Section11-20 (a) hereof, and the amount of any such discounts for . specific services if Licensee offers separate rates or discounts for those categories of Subscribers. (11) A report on the number of multiple dwelling buildings and units therein receiving service under bulk agreements pursuant to Section 11-20(a) hereof. (12) A full schedule and description of services, service hours and location of the customer service office of the Licensee or offices available to Subscribers, and a schedule of all rates, fees and charges for all services provided over the Cable System. (13) Upon written request, a report on the number of total Subscribers served by the Licensee in the Cable System, with a breakdown by the types cf services received by the Subscribers. (14) Upon written request, a report on the number of personnel employed by the Licensee by area of responsibility, including any ethnic reporting pursuant to Equal Employment opportunity Commission requirements. (c) Upon each written request by the City made not more than once annually, a Licensee shall within forty- five (45) calendar days of receipt of .the request, provide the following documents to the City, without regard to whether the documents are filed by the Licensee or an Affiliate: (1) Annual financial or its parent Licensee which issues an annual report of the Licensee or any Affiliate of controls Licensee and financial report; Page 49 of 89 • 02- 917 (2) Copyright filings reflecting the operation of the System; (3) Any pleadings, petitions, applications, communications, reports and documents (collectively referred to as "filings") submitted within the previous twelve (12) months by or on behalf of the Licensee to the FCC, SEC or any state or federal agency, court or regulatory commission which filings may adversely impact the operation of the Cable System of the Licensee in the City or that may impact the rights or obligations of the City under this Ordinance or the License Agreement issued pursuant to this Ordinance and any and all responses, if any, to the above mentioned filings. (4) Any and all notices of deficiency, forfeiture, or documents instituting any investigation, civil or criminal proceeding issued by any state or federal agency regarding the System, Licensee, or any Affiliate of Licensee, provided, however, that any such notice or documents relating to an Affiliate of Licensee need be provided only to the extent the same may directly or indirectly affect or bear on operations of the Licensee in the City. For example, a notice that an Affiliate which has a management contract for the City's System was not in compliance with FCC EEO requirements would be deemed to affect or bear on operations in the City. (5) A copy of any cable Licenses or franchises entered into by Licensee, its parent, Affiliate or subsidiary. A Licensee shall provide a copy of such documents as soon as reasonably possible _but no later than within thirty (30) calendar days of such request. Page 50 of 89 02- 917 (d) Notwithstanding anything to the contrary, the Licensee agrees to provide the City, within ten (10) calendar days of filing or receipt of such, any document . that may, in the reasonable judgment of the Licensee, adversely impact the construction, operation or maintenance of the Cable System of the Licensee. • (e) The Licensee shall furnish to the City such additional reports as a Licensee may prepare as a customary business practice with respect to its operations, which in the discretion of the City Manager are reasonable and necessary for the administration and/or enforcement of this chapter. (f) Within ten (10) calendar days of filing by Licensee, its parent, subsidiary, or Affiliate, Licensee shall provide notice to the City Manager of any petitions, filings, reports and correspondence filed with any federal, state, or local agencies or courts, which may, in the reasonable judgment of the Licensee, adversely affect City and/or Subscribers with regard to the Ordinance or a License Agreement, including, but not limited to, any request for protection under bankruptcy laws, or any judgment related to a declaration of bankruptcy. In any administrative or legal proceeding in which Licensee is a party, Licensee shall provide a copy of any filed document, upon written request of the City, within five (5) calendar days. To the extent the City desires and may properly participate in the proceeding, Licensee agrees that it will not oppose any necessary extension or tolling of time which may allow the City's participation in said matter. However, the Licensee may oppose or object to any extension of time that exceeds the period of time used by Licensee to provide a copy of the requested filing to the City. (g) A Licensee shall make a complete set of books and records available for inspection, copying and audit by the City in Miami -Dade County, for purposes of ascertaining compliance with requirements of this Ordinance and the License Agreement, subject to subsection (h) below. Such inspection, copying and audit shall be upon reasonable notice and during normal business hours. Page 51 of 89 02- 917 c �Vv, (h) The City shall accord all books and records thaw it inspects under this Section the degree of confidentiality such books and records are entitled to under federal and state Law. A Licensee's books and records shall not constitute public records, except to the extent required by federal and state Law. To the extent a Licensee considers any books or records that it is required to produce to be confidential or otherwise protected from public disclosure, Licensee shall designate which documents it views as protected and provide a written explanation to the City of the legal basis for Licensee's claim of protection. (i) Notwithstanding anything to the contrary in this section, within thirty (30) calendar days of the third annual anniversary of the effective date of a License Agreement and no more often than every two (2) years thereafter, the Licensee shall upon written notice of the City, submit a report to the City, in a form reasonably acceptable to the City, discussing technological advances and other information necessary to evaluate Licensee's compliance with State -of -the - Art obligations under a License Agreement or this Ordinance, except as otherwise set forth in a License Agreement. Section 11-18. Customer Service Requirements. (a) A Licensee shall at a minimum maintain all parts of its System in good condition and in accordance with FCC standards. Sufficient employees shall be retained to provide safe service for all of its customers and facilities as set forth in this Ordinance and a License Agreement. The customer service requirements set forth herein are applicable to all services subject to the Ordinance. Licensee's failure to comply with this subsection shall result in a refund order in the amount of a Subscriber's monthly bill, and a fine in the amount of Five Hundred Dollars ($500), per violation, per day or part thereof that the violation continues. (b) A Licensee shall maintain at least two (2) conveniently located business offices and/or service centers within the City limits, unless Licensee offers free pick-up and delivery of rental equipment, in which case Licensee shall maintain at least one (1) such location. This business office shall be open at minimum from 8:00 a.m. to 6:00 p.m., Monday through Friday, and 8:30 a.m. to 5:00 p.m. on Saturday. Page 52 of 89 • Further, Licensee shall locate, staff, operate and maintain said office(s) so as to provide all Subscribers, including but not limited to those Subscribers who may be elderly, disabled . or otherwise impaired, with access to its office. The office shall make available for all customers 1) parking within reasonable proximity of the office and 2) sufficient covered waiting areas and adequate seating capacity in an air- conditioned space. Such office must have adequate counter personnel to keep wait time to an average of ten (10) minutes or less. Licensee's failure to comply with this subsection, under normal operating conditions, shall result in a fine in the amount Three Hundred Dollars ($300) per violation, per day or part thereof that the violation continues. (c) Licensee shall maintain a listed local, toll-free telephone number under the name by which Licensee is doing business in the City, and employ a sufficient number of telephone lines, personnel and answering equipment or service to allow reasonable access by Subscribers and members of the public to contact the Licensee on a full-time basis, twenty- four (24) hours per day, seven (7) calendar days per week including holidays. Knowledgeable, qualified Licensee representatives shall be available to respond to customer telephone inquiries, twenty-four (24) hours per day, seven (7) days per week including holidays in, at minimum, English, Spanish and Creole languages. Licensee's failure to comply with this subsection shall result in a refund order in the amount of a Subscriber's monthly bill, and a fine in the • amount of Three Hundred Dollars ($300), per violation, per day or part thereof that the violation continues. (d) Licensee shall answer all customer service and repair telephone calls made under normal operating conditions within thirty (30) seconds, including wait time and within an additional thirty (30) seconds to transfer the call. Customers shall receive a busy signal less than three percent (3%) of the time. These standards shall be met no less than ninety percent (90%) of the time under normal operating conditions except for the period from 12:00 a.m. to 6:00 a.m., where a Licensee and the City have mutually agreed in writing to an alternative standard measured on a quarterly basis. Licensee shall employ Automatic Call Distribution technology,. or its equivalent, to compile and generate the information required to establish compliance with these standards. Licensee's failure to comply with this subsection shall result Page 53 of 89 02- 917 in a fine in the amount Three Hundred Dollars ($300) per violation, per day or part thereof that the violation continues. • (e) A Licensee shall employ and maintain sufficient qualified personnel and equipment to be available (1) to accept payments; (2) to exchange or accept converters or other equipment; (3) to receive Subscriber complaints or requests for service or repairs on a full-time basis, twenty-four (24) hours per day, seven (7) days per week; (4) to initiate service installations, undertake normal repairs, initiate action with respect to any Subscriber service complaints within twenty-four (24) hours; (5) to enable a service technician to respond to service calls twenty-four (24) hours per day, seven (7) days a week including holidays when more than 25 Subscribers served from the same nearest active electronic device, such as an amplifier or node, call with the similar • complaint. Licensee's failure to comply with this subsection shall result in a fine in the amount of Three Hundred Dollars ($300) per violation, per day or part thereof that the violation continues. (f) Licensee must meet each of the following standards no less than ninety-five (95) percent of the time under normal operating conditions as measured on a quarterly basis: (1) Standard installation work shall be performed within seven (7) calendar days after an order has been placed except in those instances where a Subscriber specifically requests an installation date beyond the seven (7) calendar day period. if scheduled installation is neither started nor completed Page 54 of 89 • as scheduled, the Subscriber =hall be . telephoned by an employee of the Licensee the same day. Evening personnel shall also attempt to call Subscribers at home between the hours of 5:30 p.m. and 8:00 p.m. on the day prior to any appointment as a reminder of scheduled installation work. If the call to the Subscriber is not answered, an employee of the Licensee shall telephone the Subscriber the next day; �J (2) Licensee shall respond to service interruptions promptly and in no event later than twenty-four (24) hours after the interruption becomes known to Licensee. Other service problems shall be responded to promptly and in no event later than forty- eight (48) hours after the problem becomes known to Licensee. All service interruptions, and service problems within the control of Licensee, shall be corrected within forty- eight'(48) hours after receipt of a complaint; (3) The appointment window alternatives made available for installations, service calls, repairs, and other installation activities shall be either a specific time, a four-hour time block during normal business hours, or at the election and discretion of the Subscriber, "all day." These options shall be clearly explained to the customer at the time of scheduling; (4) Licensee may not cancel an appointment with a Subscriber after the close of business on the business day prior to the scheduled .appointment; (5) If at any time an installer or technician is running late for a scheduled appointment, an attempt to contact the customer shall be made and the appointment rescheduled as necessary at a time which is convenient for the customer. Page 55 of 89 02- 91'7 C w.. (6) Licensee's failure to comply with this subsection shall result in a bill credit in an amount prorated on a daily basis,. with a • minimum of one (1) day, and a fine in the amount of Three Hundred Dollars ($300), per violation, per day or part thereof that the v-olation continues. (g) Subscribers who have experienced two (2) missed installation or service appointments due to the fault of Licensee shall receive installation free of charge. If the installation was to have been provided free of charge or if the appointment was for service or repair, the Subscriber shall receive a credit on the next bill of not less than Twenty Dollars ($20). Licensees failure to comply with this subsection shall result in a fine in the amount of One Hundred Dollars ($100) per violation, per day or part thereof that the violation continues. (h) Disconnection. (1) Voluntary Disconnection. (i) A Subscriber may terminate service at any time. (ii) A Licensee shall promptly disconnect any Subscriber who so requests from the Cable . System of the Licensee. No period of notice prior to voluntary termination of service may be required of Subscribers by any Licensee. So long as the Subscriber returns equipment within five (5) business days of the disconnection, no charge may be imposed by any Licensee for such voluntary disconnection, or for any Cable Services delivered after the date of disconnect request. (iii)A Subscriber may be asked, but not required, to disconnect the equipment of the Licensee and return it to the business office, subject to (ii) above. (iv) Any security deposit and/or other funds Page 56 of 89 . 02- 917 L r) due the Subscriber shall be refunded on disconnected accounts after any customer premises equipment including all . converters but excluding wiring have been recovered by the Licensee. The refund process shall take a maximum of forty- five (45) calendar days from the date equipment is returned to Licensee to the date the customer receives the refund. (2) Involuntary Disconnection. If a Subscriber fails to pay a monthly Subscriber or other fee or charge, the Licensee may disconnect the service outlet of the Subscriber; however, such disconnection shall not be effected until thirty-five (35) calendar days after the due date of the monthly Subscriber fee or other charge, and ten (10) calendar days advance written notice of intent to disconnect to the Subscriber in question. If the Subscriber pays within thirty-five (35) calendar days of the due date and after notice of disconnection has been given, the Licensee shall not disconnect. After disconnection, upon payment by the Subscriber in full of all proper fees or charges, including the payment of the reconnection charge, if any, the Licensee shall reinstate service as soon as • practicable. Licensee reserves the right to deny service to any customer who has been repeatedly disconnected for non-payment of services to the extent such rights are consistent with applicable state and federal Law. (3) With respect to any disconnection, whether requested or involuntary, a Licensee shall comply with the rules and regulations of the FCC and applicable Law with respect to ownership, sale, removal and abandonment of home wiring. Failure to comply with such rules including, but not limited to providing applicable notice to Subscribers and property owners shall be considered a violation of this Ordinance. 0 Page 57 of 89 Q 917 C (4) Licensee's subsection amount of violation, violation failure to comply with this shall result in a fine in the Three Hundred Dollars ($300) per per day or part thereof that the continues. (i) Licensee shall intentionally interrupt service only for good cause and for the shortest time possible and shall use its best efforts to minimize the number of service interruptions between 6:00 p.m. and 11:00 p.m. Licensee shall maintain a written log for all intentional service interruptions and all other service interruptions. Licensee's failure to comply with this subsection shall result in a fine in the amount of Three Hundred Dollars ($300) per violation, per day or part thereof that the violation continues. (j) Licensee shall notify the City Manager or designee immediately if a service interruption affects fifty or more Subscribers for a time period greater than one hour. The City Manager, in his or her discretion, shall establish appropriate methods for the notification required herein, including any procedures for notification after normal business hours. Licensee's failure to comply with this subsection shall result in a fine in the amount of Two Hundred Dollars ($200) per violation, per day or part thereof that the violation continues. (k) Licensee shall cause all of its field employees to wear a picture identification badge indicating employment by Licensee. This badge shall be clearly visible to the public. All company vehicles shall display the company name, telephone number and logo, if any, in a manner clearly visible to the public. Contractor vehicles shall display the contractor name, telephone number, contractor license number, if applicable, as well as the Cable Operator's name. Licensee's failure to comply with this subsection shall result in a fine in the amount of Two Hundred Dollars ($200) per violation, per day or part thereof that the violation continues. (1) A Licensee shall develop written procedures for the investigation and resolution of all Subscriber or City resident complaints, including, but not limited to, those regarding the quality of service and equipment malfunction, Page 58 of 89 02- 917 • 41W_ o which procedures shall be subject to the review and approval by the City Manager. A Subscribe or City resident who has . not been satisfied by following the procedures of the Licensee may file a written complaint with the office of the City Manager, who shall investigate the matter and, in consultation with the Licensee as appropriate, attempt to resolve the matter. The good faith or lack thereof of the Licensee in attempting to resolve Subscriber and resident complaints in a fair and equitable manner shall be considered in connection with the renewal Application of the Licensee. Licensee shall maintain a complete list of all complaints not resolved within three (3) calendar days of receipt and the measures taken to resolve those complaints. This list shall be compiled in a form to be approved by the City. It shall be compiled on a monthly basis. The list for each calendar month shall be supplied to the City no later than the 15th day of the next month. Licensee shall also maintain a list of all complaints received, which list shall be provided to the City within three (3) calendar days of request by the City Manager or designee, as part of an inquiry by the City regarding Licensee's compliance with this Section. Licensee's failure to comply with this subsection shall result in a fine in the amount of Five Hundred Dollars ($500) per violation, per day or part thereof that the violation continues. (m) Licensee shall permit the City designee to inspect and test the technical equipment and facilities of the System upon reasonable notice not to be less than seventy-two (72) • hours, except in an emergency. Licensee's failure to comply with this subsection shall result in a fine in the amount of Five Hundred Dollars ($500) per violation, per day or part thereof that the violation continues. • (n) Licensee shall abide by the following requirements governing communications with customers, bills and refunds: (1) Each Licensee shall provide to Subscribers written information in each of the following areas at the time of installation, at least once annually, and at any future time upon request by the Subscriber: (i) How to use the Cable Service; (ii) Installation and service maintenance Page 59 of 89 Ag- 41'7 policies; (iii)All products and services offered; (iv) Prices and service options; (v) Channel positions of programming carried on the System; (vi) The procedures of the Licensee for the receipt and resolution of customer complaints, the address of the Licensee and telephone number to which complaints may be reported, and the hours of operation; (vii)The telephone number and address of the City, and as required by County ordinance, the County office designated to handle cable complaints and inquiries shall be printed on the back of the bill. The information shall be placed so as to not be confused with similar information for Licensee or the County; (viii)The availability and costs of a "lock- out" device and other parental control mechanisms; (ix) The information of the Licensee, collection, and disclosure policies for the protection of the privacy of the Subscriber. (x) Licensee's failure to comply with this subsection shall result in a fine in the amount of Two Hundred Dollars ($200) per. violation, per day or part thereof that the violation continues. (2) In addition, each Licensee shall provide written notice in its monthly billing, at the request of the City, of any events or public service announcements. The City shall make such a request in writing, with reasonable Page 60 of 89 02- 917 notice prior to the mailing of any billing by Licensee, such that Licensee's regular billing cycle shall not be interrupted. City shall . pay printing costs and incremental postage expenses for said notices. Licensee's failure to comply with this subsection shall result in P fine in the amount of Five Hundred Dollars ($500) per violation, per day or part thereof that the violation continues. E� 1] (3) Licensee bills shall be clear, concise and understandable to Subscribers. Licensee's failure to comply with this subsection shall result in a fine in the amount of Two Hundred Dollars ($200) per violation, per day or part thereof that the violation continues. (4) Credits for service shall be issued no later than the next billing cycle of the customer following the determination that a credit is warranted. Licensee's failure to comply with this subsection shall result in a fine in the amount of Two Hundred Dollars ($200) per violation, per day or part thereof that the violation continues. (5) A Licensee shall provide Subscribers, the City Commission, and the City Manager with at least thirty (30) calendar days advance written notice of any changes in rates, charges, Channel lineup, or initiations or discontinuations or changes of service or services offered over the Cable System whenever practicable. Licensee's failure to comply with this subsection shall result in a fine in the amount of Two Hundred Dollars ($200) per violation, per day or part thereof that the violation continues. (o) Upon a Subscriber's request, a Licensee shall provide a credit to the account of the Subscriber, prorated on a daily basis, with a minimum of one (1) day, for any period of two (2) hours or more within a twenty-four (24) hour period during which a Subscriber experienced an interruption of service or substantial impairment of service, whether due to a Page 61 of 89 02- 917 System Malfunction or other cause within the Licensee's control. No refunds shall be due for service interruptions directly related to a rebuild, upgrade or routine maintenance • of the Cable System which is planned, noticed properly to the City and Subscribers, and occurs during a time other than between 6:00 p.m. and 11:00 p.m. and lasts for four (4) hours or less. Licensee's failure to comply with this subsection shall result in a fine in the amount of Three Hundred Dollars ($300) per violation, per day or part thereof that the violation continues. (p) Billing. (1) The first billing statement of the Licensee after a new installation or service change shall be pro -rated as appropriate and shall reflect any security deposit. (2) The billing statement of the Licensee must be fully itemized, with itemizations including, but not limited to, Basic and premium Service charges and equipment charges. Invoices shall also clearly delineate all activity during the billing period, including optional charges, rebates and credits. (3) Any balance not received within ten (10) calendar days after the due date may be assessed an administrative charge not to exceed the average actual fixed and variable cost to administer a delinquent account, subject to applicable Law, except that a late charge of not more than Five Dollars ($5) shall be presumed to comply with this subsection. The charge shall appear on the billing statement of the following month. In the event it is determined that a Licensee has assessed a late fee in violation of this Section, Licensee shall pay to Subscribers that amount which is ordered by a governmental or judicial body which has properly asserted jurisdiction. Subscribers shall not be charged an administrative fee, a late fee or otherwise penalized for any failure by the Licensee, its employees, or contractors, Page 62 of 89 0 02- 917 including failure to timely or correctly bill the Subscriber, or failure to properly credit the Subscriber for a payment timely made. (4) The Licensee must notify the Subscriber that payment can be remitted in Person at the office of the Licensee in the City and inform the Subscriber of the address of that office where payment can be made. (5) Licensee's failure to comply with this subsection shall result in a fine in the amount of Three Hundred Dollars ($300) per violation, per day or part thereof that the violation continues. (q) Except as incident to a rebuild of the Cable System, a Licensee may not substantially alter the service being provided to a Subscriber (including by re -tiering, restructuring a tier or otherwise) without the express permission of such Subscriber, unless it complies with this subsection. (1) If a Licensee wishes to alter the service being provided to a Subscriber (including by re -tiering, restructuring a tier or otherwise) in such a way that the Subscriber shall no longer be able to obtain the same package of services, then the Licensee must provide the Subscriber with thirty (30) calendar days notice of such alteration, explain the substance and the full effect of the alteration, and provide the Subscriber the right within the thirty (30) day period following notice, to opt to receive within the same thirty (30) calendar days any combination of services offered by the Licensee. (2) Except as provided under applicable federal, state, or local Law, no charge may be made for any service or product which the Subscriber has not affirmatively indicated, in a manner separate and apart from payment of the regular monthly bill, that the Subscriber wishes to receive. Page 63 of 89 02- 917 (3) Licensee's failur= to comply with this subsection shall result in a fine in the amount of Three Hundred Dollars ($300) per violation, per day or part thereof that the violation continues. (r) If the City reasonably questions a Licensee's compliance with any provision of this Section, the City may request that the Licensee certify in writing to the City, based upon internal due diligence by the Licensee, that to the best of knowledge of the Licensee it is in compliance with the standards set forth in this Section; provided, however, that the City specifically shall identify the performance of Licensee that is questioned, and requests certification not more often than semi-annually. At the request of the City, in the event of a discrepancy between the reports provided to the City pursuant to this Section and the certification required herein, the Licensee shall submit such documentation as may be required to demonstrate compliance with this Section. This documentation shall be submitted within thirty (30) calendar days of the receipt by the Licensee of the City's request. s) Responsibility for the administration of this Ordinance, and any License granted pursuant to this Ordinance, and for the resolution of all complaints against a Licensee regarding the quality of service, equipment malfunctions, and related matters, including the authority to order refunds or fines, is hereby delegated to the City Manager, who is empowered, among other things, to settle, or compromise any controversy arising from operations of the Licensee, on behalf of the City, in accordance with the best interests of the public. In cases where requests for service have been ignored or in cases where the service provided is unsatisfactory for whatever reason, the City Manager or designee, hereafter referred to jointly as City Manager, shall have the power to require the Licensee to provide service, if in the opinion of the City Manager or designee such request for service is reasonable. Any Person aggrieved by a decision of the City Manager, including the Licensee, may appeal the matter to the City Commission for hearing and determination. The City Commission may accept, reject or modify the decision of the City Manager. No adjustment, settlement, or compromise, whether instituted by the City Manager or by the City Commission shall be contrary to the provisions of this Page 64 of 89 O N r V Ordinance or any License agreement issued pursuant to this Ordinance, and neither the City Manager nox the City Commission, in the adjustment, settlement, or compromise of any controversy shall have the right or authority to add to, modify or delete any provision of this Ordinance or of the License, or to interfere with any rights of Subscribers or any Licensee under applicable federal, or state Law or private contract. (t) (1) In addition to the powers delegated in Section 11-18(s) above, the City Manager shall have the authority to order credits from a Licensee to individual cable Subscribers who have submitted a written complaint to the City and to assess fines against a Licensee for any violation of this Ordinance or any License issued pursuant to this Ordinance, which fines shall be paid to the City. (2) In ordering credits to cable Subscribers, the City Manager shall be governed as set forth throughout this Section, in which the refund indicated is expressed as a percentage of the monthly bill of the Subscriber. The credits set forth are to be made on a per violation basis with each day of a continuing violation constituting a separate violation. The credit ordered by the City Manager pursuant to this Section shall not exceed 100 percent (100%) of a monthly bill of the Subscriber, unless a violation has continued at least 30 calendar days from the date first reported to the Licensee. (3) The fines set forth in this Section are to be assessed on a per violation basis, with each day of a continuing violation constituting a separate violation. Where a credit required by this Section is not possible because service has been terminated, Licensee shall issue a refund to the former Subscriber for the appropriate amount, provided that the Licensee can locate the former Subscriber after using reasonable efforts to do so. Page 65 of 89 f- 917 (4) Prior to ordering any credit and/or assessing a fine pursuant to this Ordinance, the City Manager shall mail to the Licensee a written notice, by hand delivery or certified or registered mail, of the proposed credit and/or fine, specifying the violation at issue. The Lcensee shall have ten (10) calendar days from the date of receipt of the written notice to demonstrate the violation has been cured or to file a written response to the notice of the City Manager describing the plan to cure. In the sole discretion of the City Manager, a fine, credit or refund may be waived, if the issue has been cured or the City Manager believes the issue will be cured according to the proposed plan. Written response of the Licensee shall be signed by management level personnel of Licensee and all statements contained therein shall- be regarded as material representations of the Licensee to the City. (5) Prior to ordering a credit,refund and/or (6) assessing a fine, the City Manager shall consider any justification or mitigating factor advanced in the written response of the Licensee, including but not limited to rebates or credits to the Subscriber or a cure of the violation. The City Manager may, after consideration of the response of the Licensee, waive or reduce any proposed credit, refund and/or fine. In the case of a complaint from a single Subscriber or a violation of this Ordinance or any License issued pursuant to this Ordinance in which only a single Subscriber has been affected, the City Manager may not assess any fine if the Licensee has reasonably resolved the complaint or cured the violation within a reasonable time frame not to exceed ten (10) calendar days. However, said Subscriber may be entitled to a credit as provided herein. Subsequent to the notice of proposed credit, refund and/or fine to Licensee and Page 66 of 89 02,917 1�1 • (8) Intentional misrepresentation by a Licensee in any response to a notice of proposed credit, refund and/or fine, whether oral or written, shall be considered a material breach of the License Agreement, subject to a penalty of no less than Five Thousand Dollars ($5,000) in liquidated damages to the City, and shall be grounds for License revocation. (9) In addition to complying with the customer Page 67 of 89 • 02- 91'7 consideration of the response of the Licensee, if any, the City Manager may issue an assessment of credit, refund and/or fine. The • credit, refund and/or fine shall be paid within thirty (30) calendar days of written notice to the Licensee. If said credit, refund and/or fine is not paid by Licensee in the next bill cycle or within such thirty (30) day period, as the case may be, the City may, at its discretion, withdraw immediately the amount thereof from the Security Fund. Upon such withdrawal, the City shall notify Licensee of the withdrawal amount, after which Licensee shall have ten (10) calendar days from the date of such notice to deposit in the Security Fund an amount sufficient to restore the Security Fund to the amount specified in the License Agreement. This credit, refund and/or fine shall constitute liquidated damages to the Subscriber and City for the violation and the City may enforce payment of the credit, refund and/or fine in any court having jurisdiction. It is the intent of the City to determine fines as a reasonable estimate of the damages suffered by the City and/or its Subscribers, whether actual or potential, and may include without limitation, • increased costs of administration and other damages difficult to measure. (7) Licensee may appeal any decision of the City Manager directly to the City Commission within thirty (30) calendar days of notice of the decision to the Licensee. (8) Intentional misrepresentation by a Licensee in any response to a notice of proposed credit, refund and/or fine, whether oral or written, shall be considered a material breach of the License Agreement, subject to a penalty of no less than Five Thousand Dollars ($5,000) in liquidated damages to the City, and shall be grounds for License revocation. (9) In addition to complying with the customer Page 67 of 89 • 02- 91'7 C, c service standards set forth in this Ordinance or LTi any License issued pursuant to this Ordinance, a Licensee shall, at minimum, comply with all customer service standards applicable to Cable Systems of the FCC and any other applicable federal, state or county Law concerning customer service standards, consumer protection, and unfair or deceptive trade practices. (10) The City expressly reserves the right to consider violations of the customer service requirements in evaluating any renewal, modification or transfers of any License Agreement. Section 11-19. Subscriber Privacy. (a) A Licensee shall at all times protect the privacy of all Subscribers to the full extent required by Section 631 of the Cable Act, 47 U.S.C. § 551, and state Law. A Licensee shall not condition Subscriber or other service on the grant of permission of the Subscriber to disclose information which, pursuant to federal or state Law, cannot be disclosed without the explicit consent of the Subscriber. No penalties or extra charges may be invoked by the Licensee for a failure of the Subscriber to grant consent. (b) Unless otherwise permitted by federal or state Law, neither the Licensee nor its agents or employees shall, without the prior and specific written authorization of the Subscriber involved, sell, or otherwise make available for commercial purposes the names, addresses or telephone numbers of any Subscriber or Subscribers, or any information which identifies the individual viewing habits of any Subscriber or Subscribers.. Section 11-20. Discrimination Prohibited. (a) No Licensee may in its rates or charges, or in the availability of the services or facilities of its System, or in any other respect, make or grant undue preferences or advantages to any Subscriber, potential Page 68 of 89 09- - 91'7 • • Subscriber, or group of Subscribers or potential Subscribers, nor subject any such Persons or group of • Persons to any undue prejudice or any disadvantage. A Licensee shall not deny, delay, or otherwise burden service or discriminate against Subscribers or users on the basis of age, race, creed, religion, color, sex, handicap, national origin, marital status, or political affiliation, except for discounts for senior citizens, the economically disadvantaged or disabled that are applied in a uniform and consistent manner. A Licensee may also offer bulk discounts to multiple dwelling buildings to the extent such discounts are otherwise permissible by Law. (b) A Licensee shall not deny Cable Service to any potential Subscriber because of the income of the residents of the area in which the Subscriber resides. (c) A Licensee shall not refuse to employ, nor discharge from employment, nor discriminate against any Person in compensation or in terms, conditions or privileges of employment because of age, race, creed, religion, color, sex, disability, national origin, marital status, or political affiliation. The Licensee shall comply with federal, state and local Laws and regulations governing equal employment opportunities, as the same may be from time to time amended. • Section 11-21. Use of Streets. (a) A Licensee shall, at all times, comply with other applicable provisions of the City Code of the City of Miami, or as such may hereafter be amended. • (b) Any pavements, sidewalks, curbing or other paved area taken up or any excavations made by a Licensee shall be done under the supervision and direction of the City under permits issued for work by the proper officials of the City, and shall be completed in such manner as to give the least inconvenience to the inhabitants of the City. A Licensee shall, at its own cost and expense, and in a manner approved by the City, replace and restore any such pavements, sidewalks, curbing or other paved areas in as good a condition as before the work involving such disturbance was done, and Page 69 of 89 02- 917 shall also prepare, maintain and provide to the City's Public Works Department full and complete plats, mars and • records showing the exact locations of its facilities located within the public Streets, ways, and easements of the City. A construction plan with strand maps is required thirty (30) calendar days prior to commencement cf construction in a particular area. (c) A Licensee shall, at its expense, protect, support, temporarily disconnect, relocate, or remove, any of its property when required by the City by reason of traffic conditions, public safety, Street construction, Street resurfacing or widening, change of Street grade, installation or sewers, drains, water pipes, power lines, signal lines, tracks, or any other type of municipal or public utility improvements. (d) A Licensee shall, on the request of any Person holding a building moving permit issued by the City, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal or raising or lowering of wires shall be paid by the Person requesting same, and the Licensee shall have the authority to require such payment in advance, except in the case where the requesting Person is the City or other government agency, in which case no such payment shall be required. The Licensee shall be given not less than five (5) calendar days advance notice to arrange for such • temporary wire changes. (e) A Licensee shall upon notice to the City of not less than seven (7) calendar days, emergency situations excepted, have the authority to trim the trees or other natural growth upon and overhanging the Streets so as to prevent the branches of such trees from coming in contact with the wires, cables and other equipment of the Licensee, except that, at the option of the City, such trimming may be done by it or under its supervision and direction at the expense of the Licensee. (f) A Licensee shall use, with the permission of the owner, existing underground conduits (if applicable) or overhead utility facilities whenever and wherever practicable as determined by the City, provided that nothing herein shall constitute a waiver of Licensee's Page 70 of 89 0 obligations under other applicable sections of the City Code. Copies of agreements between a Licensee aTid third • party for use of conduits or other facilities shall be filed with the City, provided that the Licensee shall have the right to redact proprietary and confidential information in such agreements as it pertains to financial arrangements between the parties. (g) All wires, cable lines, and other transmission lines, equipment and structures shall be installed and located to cause minimum interference with the rights of property owners. The City may issue such rules and regulations concerning the installation and maintenance of a Cable System installed in, on, or over the Streets, as may be consistent with this Ordinance and the License Agreement. (h) All safety practices required by Law shall be used during construction, maintenance and repair of a Cable System. A Licensee shall not place facilities, equipment or fixtures where any gas, electric, telephone, water, sewer or other utility facilities shall interfere, or obstruct or hinder in any manner the various utilities serving the residents of the City. (i) A Licensee shall, at all times: (1) Install and maintain its wires, cables, • fixtures and other equipment in an orderly and workmanlike manner and in accordance with the requirements of federal, state, county and City Laws, as well as the South Florida Building Code and Electrical Safety Ordinances and any other applicable Building or Electrical Safety Code, and all other applicable rules, regulations, and orders, as they may be hereinafter amended or enacted, and in such manner that the installations of the City shall not receive interference. is (2) Keep and maintain in a safe, suitable, substantial condition, and in good order and repair, all structures, lines, Page 71 of 89 o,F*1 0( 0 equipment, and connections in, over, under, and upon the Streets, sidewalks, • alleys, and public ways or places of the City, wherever situated or located. (j) On Streets where both electrical and telephone utility wiring are located underground, either at the time of initial construction of a Cable System or at any time thereafter, the cable of a Licensee shall also be located underground at the expense of the Licensee, consistent with Chapter 54 of the City Code, as amended. Between a Street and a residence of a Subscriber, the cable of the Licensee must be located underground if both electrical and telephone utility wiring are located underground. The City shall encourage, to the extent feasible, that the public utility and the Licensee cooperate in opening of trenches and making such trenches available to all parties with the understanding that the costs of opening and refilling of such trenches would be shared equally by all users of such trenches. (k) In the event the use of any part of a Cable System is discontinued for any reason for a continuous period of six (6) months, or in the event such System or property has been installed in any Street without complying with the requirements of this Ordinance or a License Agreement, or the License has been terminated, canceled or expired, the Licensee, within thirty (30) . calendar days after written notice by the City, shall commence removal from the Streets of all such property as the City may require. (1) The City may extend the time for the removal of equipment of the Licensee and facilities for a period not to exceed one hundred eighty (180) calendar days, and thereafter such equipment and facilities may be deemed abandoned. (m) In the event of*such removal or abandonment, the Licensee shall restore the area to as good a condition as prior to such removal or abandonment. (n) All Licensee Cable System distribution devices to be located on Streets or private City property shall be installed, pursuant to City Code, in such a way as to Page 72 of 89 02- 917 • • eliminate or minimize any potentially adverse impact. All proposed locations shall be reviewed by the City Neighborhood Enhancement Team (NET) to ensure compliance with these and all other applicable policies and procedures relating to the placement of distribution devices on Streets or City private property. Proposed locations may require review and approval by various City Departments, as appropriate. (o) In no case shall distribution devices be placed in the following locations: (1) Within Scenic Transportation Corridors. (2) Within Historical Preservation Districts. (3) Within a specified 25 foot corner visibility triangle. (4) Within a specified 10 -foot driveway visibility triangle. (5) Within 15 feet of any fire hydrant, fire callbox, police callbox, or other emergency facility. (p) The City may require that these distribution devices located on Streets and City private property be installed with the following: (1) Landscaping. (2) Visual screening. (3) Fencing, barriers, or other security features. When required, the Licensee shall ensure that all landscaping, visual screening, fencing, barriers, or other security features are compatible with the characteristics of the surrounding landscape and architectural features and require minimal maintenance. The City shall not unreasonably require landscaping, visual screening, fencing, barriers, or other security features that are inconsistent with the character of the immediate area in which the distribution devices are to be installed. Page 73 of 89 02- 917 •( 0 Recognizing that even minimal landscaping, visual screening, fencing, barriers, or other security features may be • susceptible to overgrowth, disease, decay and disrepair, the City shall require the Licensee to maintain and/or repair/replace this landscaping, visual screening, fencing, barriers, or other security features. (q) Placement of distribution devices on City private property shall conform to all City charter, Code, and administrative requirements. Section 11-22. Enforcement Remedies. (a) In addition to any other remedies available at Law or in equity, except as otherwise specifically provided in this Ordinance, or in any License Agreement, the City may impose a fine in the amount of Five Hundred Dollars ($500) per violation per day or part thereof for any violation of this Ordinance. (b) In addition to any other remedies available at Law or in equity or provided in this Ordinance or in any License Agreement, the City may apply any one or combination of the following remedies in the event a Licensee violates this Ordinance, its License Agreement, applicable State or Federal Law, or applicable local Law or order: (1) Revoke the License pursuant to the • procedures specified in Section 11-25 hereof. (2) In addition to or instead of any other remedy, the City may seek legal or equitable relief from any court of competent jurisdiction. (c) Before imposing any fine pursuant to this Section or any other Section herein, the City shall give Licensee written notice of the violation and its intention to assess such damages, which notice shall contain a specific description of the alleged violation. Following receipt of such notice, Licensee shall have thirty (30) calendar days to cure the violation, or to reach agreement with City Manager or designee on a Page 74 of 89 • 02- 917 • program to cure the violation, and the City shall make good faith reasonable efforts to assist the Licens-e-in resolving the violation. If the violation is not cured, or an agreement to cure is not reached, within that thirty (30) day period, the City may collect all fines owed, beginning with the date of the notice of violation by the City, either by removing such amount from the Security Fund or through any other means allowed by Law. (d) In determining which remedy or remedies are appropriate, the City shall take into consideration the nature of the violation, the Person or Persons bearing the impact of the violation, the nature of the remedy required in order to prevent further violations, and such other matters as the City determines are appropriate in the public interest. (e) Failure by the City to enforce any requirements of a License Agreement or this Ordinance shall not constitute a waiver of the City's right to enforce that violation or subsequent violations of the same type or to seek appropriate enforcement remedies. (f) In any proceeding wherein there exists an issue, properly noticed by the City pursuant to the terms of this Ordinance, with respect to a Licensee's performance of its obligations pursuant to this Ordinance or a License Agreement, the Licensee has, throughout any such proceedings and appeals thereof, the burden of proof that said Licensee is in compliance with the terms of the Ordinance. The City Commission may find a Licensee that does not demonstrate compliance with the terms and conditions of this Ordinance in default and apply any one or combination of the remedies otherwise authorized by this Ordinance. Section 11-23. Renewal of License. Renewal shall be conducted in a manner consistent with Section 626 of the Cable Act, 47 U.S.C. 546. To the extent such additional requirements are consistent with applicable Law, the following requirements shall apply. (a) Upon completion of the review and evaluation process set forth in Section 626(a) (1) (2 ) of the Cable Page 75 of 89 02- 91'7 Act, 47 U.S.C. 546, should that process be invoked, the City shall notify the Licensee, by certified or • registered mail that it may file a formal renewal Application including a renewal proposal. The notice shall specify the minimum information to be included in the renewal Application and the deadline for filing the Application, which shall be no earlier than thirty (30) calendar days following the date of the notice. (1) The' Application shall comply with the requirements of Section 11-8 hereof and provide the specific information requested in the notice or such other information as is designated by the City in the notice requesting a formal renewal proposal. If the Licensee does not submit a formal renewal Application by the date specified in the notice to the Licensee by the City, given pursuant to this subsection, the Licensee shall be deemed not to be seeking renewal of its License. (2) Upon receipt of the formal renewal Application, the City shall publish notice of its receipt and make copies available to the public. The City, following public notice of no less than ten (10) calendar days, may hold one (1) or more public hearings on the renewal Application. (b) With regard to any renewal Application, in the event a public hearing on such Application is held, or in the event that the City Commission considers such Application without a public hearing, the City Commission shall either: (1) Pass a resolution agreeing to renew the License; or (2) Pass a resolution that makes a preliminary assessment that the License should not be renewed; or Page 76 of 89 . • 4D (3) In the case of an a resolution to negotiations of a informal proposal, pass enter into informal License Agreement. (c) If a preliminary assessment is made that a License should not be renewed, at the request of the Licensee or on its own initiative, the City shall commence a proceeding in accordance with Section 626(c) of the Cable Act, 47 U.S.C. § 546(c) to address the issues set forth in Section 626 (c) (1) (A) - (D) of the Cable Act, 47 U.S.C. § 546 (c) (1) (A) - (D) . Any denial of a proposal for renewal that has been submitted in compliance with subsection (b) of § 546 shall be based on one or more adverse findings made with respect to the factors described in § 5.46 (c) (1) (A) - (D) , pursuant to the record of proceedings under § 546(c). The City shall not base a denial of renewal on a failure to substantially comply with the material terms of the License under § 546 (c) (1) (A) or on events considered under -§ 546 (c) (1) (B) unless the City has provided the Licensee with notice and opportunity to cure, or in any case in which it is documented that the City has waived its right to object, or the Licensee gives written notice of a failure or inability to cure and the City fails to object within a reasonable time after receipt of such notice. (d) Any request to initiate a renewal process or proposal for renewal not submitted within the time period set forth in Section 626(a) of the Cable Act, 47 U.S.C. § 546(a), or submitted within such time frame and the parties agree that the informal process shall be first initiated, shall be deemed an informal proposal for renewal and shall be governed in accordance with Section 626 (h) of the Cable Act, 47 U.S.C. § 546 (h) . The City may hold one (1) or more public hearings or implement other procedures under which comments from the public on an informal proposal for renewal may be received. Following such public hearings or other procedures, the City Commission shall determine whether the License should be renewed and the terms and conditions of any renewal. (e) If the City Commission grants a renewal Application, the City and the Licensee shall agree on the terms of a License Agreement, pursuant to the procedures Page 77 of 89 IM 02- 917 specified in Section 11-9 of this ordinance, before such renewal becomes effective. (f) If renewal of a License is lawfully denied, the • City may acquire ownership of the Cable System or effect a transfer of ownership of the System to another Person upon approval of the City Commission. Any such acquisition or transfer shall be at Fair Market Value, determined on the basis of the Cable System valued as a going concern but with no value allocated to the License itself. The City may not acquire ownership of the System while an appeal of a denial for renewal is pending in any court pursuant to the Cable Act, 47 U.S.C. § 546(e). (g) If renewal of a License is lawfully denied and no appeal to a court is pending, and the City does not purchase the Cable System or approve or effect a transfer of the Cable System to another Person, the City may require the former Licensee to remove its facilities and equipment at the expense of the former Licensee. If the former Licensee fails to do so within a reasonable period of,time, the City may have the removal completed at the expense of the former Licensee and/or surety. Section 11-24. Transfer, Sale, and Assignment. (a) No transfer, sale or assignment of any i,- erest in a License shall occur without prior approval of the • City. (b) An Application for a transfer, sale or assignment of any interest of a License shall meet the requirements of Section 11-8 hereof, and provide complete information on the proposed transaction, including but not limited to details on the legal, financial, technical and other qualifications of the transferee, and on the potential impact of the transfer on Subscriber rates and service. Except in the case of a pro forma Transfer -as defined in Subsection 11-2(hh), the Application shall provide, at a minimum, the information required in Section 11-8 or such other information as is specified in a License Agreement in lieu of the information required in Section 11-8. In addition, the Applicant shall provide to the City any and all information provided to Miami -Dade County in connection with the Transfer. Page 78 of 89 • 02- 90 (c) An Application for appzoval of a pro forma • Transfer of a License shall be considered granted on the sixty-first (61") calendar day following the filing of such Application with the City unless, prior to that date, the City notifies the Licensee to the contrary. An Application for approval of a pro forma Transfer of a License shall clearly identify the Application as such, describe the proposed transaction, and explain why the Applicant believes the Transfer is pro forma. Unless otherwise requested by the City within thirty (30) calendar days of the filing of an Application for a pro forma Transfer, the Applicant shall be required only to provide the information required in subsections 11- 8 (e) (1) , ( 3) , (12 ) and (14 ) with respect to the proposed transferee. (d) In making a determination on whether to grant an Application for a Transfer of a License, the City Commission shall consider the legal, financial, and technical and other qualifications of the transferee to operate the System; whether the incumbent Cable Operator is in substantial compliance with the material terms of its License Agreement and this Ordinance and, if not, the proposed commitment of the transferee to cure such noncompliance; and whether operation by the transferee would adversely affect Cable Services to Subscribers, or otherwise be contrary to the public interest. (e) No Application for a Transfer of a License shall be granted unless the transferee, if the holder of the License, agrees in writing to abide by and accept all terms of this Ordinance, as amended, and the License Agreement, and to assume all obligations and liabilities of the previous Licensee, whether known or unknown, under this Ordinance, as amended, and the License Agreement. If such transferee will not be the holder of the License, such transferee will sign an acknowledgement ensuring compliance by the Licensee with the License Agreement and the Ordinance. The City shall certify to Licensee, upon request, all issues of Licensee's performance which are known and pending. (f) Subject to applicable Law, approval by the City of a Transfer of a License does not constitute a waiver Page 79 of 89 02- 917 or release of any of the rights of the City under this Ordinance or the License Agreement, whether aiising • before or after the date of the Transfer. Section 11-25. Revocation or Termination of License. (a) A License may be revoked by the City Commission for failure of the Licensee to construct, operate or maintain the Cable System as required by this Ordinance or the License Agreement, or for any other material violation of this Ordinance or material breach of the License Agreement. To invoke the provisions of this subsection (a), the City shall give the Licensee written notice, by certified mail at the last known address, that Licensee is in material violation of this Ordinance or in material breach of the License Agreement and describing the nature of the alleged violation or breach with specificity. If within thirty (30) calendar days following receipt of such written notice from the City to the Licensee, the Licensee has not cured such violation or breach, or has not entered into a written agreement with the City Manager or designee on a program to cure the violation, or has not demonstrated that the violation cannot be cured, the City may give written notice to the Licensee of its intent to revoke the License, stating reasons. (b) Prior to revoking a License under subsection . (a) hereof, the City Commission shall hold a public hearing, upon no less than ten (10) calendar days written notice to the Licensee, at which time the Licensee and the public shall be given an opportunity to be heard. Following the public hearing the City Commission may determine whether to revoke the License based on the evidence presented at the hearing, and other evidence of record. If the City Commission determines to revoke a License, it shall issue a written decision setting forth the reasons for its decision. A copy of such decision shall be transmitted to the Licensee. (c) Notwithstanding subsections (a) and (b) hereof, any License may, at the option of the City following a public hearing before the City Commission, be revoked one hundred twenty (120) calendar days after an assignment for the benefit of creditors or the appointment of a Page 80 of 89 0 02- 911 I receiver or trustee to take over the Licensee, whether in a receivership, • bankruptcy assignment for the benefit other action or proceeding, unless hundred twenty (120) day period: .7 �J FJ business of the reorganization, of creditors, or within that one (1) S,_ch assignment, receivership or trusteeship has been vacated; or (2) Such assignee, receiver or trustee has fully complied with the terms and conditions of this Ordinance and the License Agreement and has executed an agreement, approved by a court having jurisdiction, assuming and agreeing to be bound by the terms and conditions of this Ordinance and the License Agreement. (d) In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a Licensee, the City may revoke the License, following a public hearing before the City Commission, by serving notice upon the Licensee and the successful bidder at the sale, in which event the License and all rights and privileges of the License shall be revoked and shall terminate thirty (30) calendar days after serving such notice, unless: (1) The City has approved the Transfer of the License to the successful proposer; and (2) The successful proposer has covenanted and agreed with the City to assume and be bound by the terms and conditions of the License Agreement and this Ordinance. (e) If the City revokes a License, or if for any other reason a Licensee abandons, terminates or fails to operate or maintain service to its Subscribers for a period of six (6) months, the following procedures and rights are effective: (1) The City may require the former Licensee to remove its facilities and equipment at the expense of the former Licensee. If Page 81 of 89 02- 917 the former Licensee fails to remove facilities and/or equipment within a • reasonable period of time, the City may have the removal done at the expense of the former Licensee and/or surety. (2) The City, by re3olution of the City Commission, may acquire ownership, or effect a transfer, of the Cable System at an equitable price. (3) If a Cable System is abandoned by a Licensee, the City may sell, assign or transfer all or part of the assets of the System. (f) Where the City has issued a License specifically conditioned in the License Agreement upon the completion of construction, System upgrade or other specific obligation by a specified date, failure -of the Licensee to complete such construction or upgrade, may result in the revocation of the License as set forth in this Section, unless the City, at its discretion and for good cause demonstrated by the Licensee, grants an extension of time. (g) No adverse action against a Licensee may be taken by the City pursuant to this Section except after a noticed public hearing at which the Licensee is given an opportunity to participate. Section 11-26. Continuity of Service Mandatory. (a) It is the right,of all Subscribers to receive all available services requested from the Licensee as long as all financial and other obligations to the Licensee are satisfied. (b) In the event of a termination or Transfer of a License for whatever reason, the Licensee shall ensure that all Subscribers receive continuous, uninterrupted service regardless of the circumstances. The Licensee shall cooperate with the City to operate the System for a temporary period following termination or Transfer as necessary to maintain continuity of service to all Page 82 of 89 • 4b 9 Subscribers. The temporary period shall not exceed twelve (12) months without the written consent of the • Licensee. During such period the Cable System shall be operated under such terms and conditions as the City and the Licensee may agree, or such other terms and conditions that shall continue, to the extent possible, the same level of service to Subscribers and provide reasonable compensation to the Cable Operator. (c) In the event a Licensee fails to operate the System for seven (7) consecutive calendar days without prior approval of the City or without just cause, the City may, at its option, operate the System or designate an operator until such time as the Licensee restores service under conditions acceptable to the City or until a permanent operator is selected. If the City is required to fulfill this obligation for the Licensee, the Licensee shall reimburse the City for all costs or damages resulting from the failure of the Licensee to perform, including City's costs for City Staff, consultants and other professionals necessary to continue operation of the System. Additionally, the Licensee shall cooperate with the City to allow City employees and/or City agents free access to the facilities and premises of the Licensee for purposes of the Licensee of continuing System operation. To the extent that revenues are collected as a result of operation of the System under this subsection, the City shall have the right to collect License fees on such revenues subject to the terms and conditions of this Ordinance. Section 11-27.. Rates. (a) Nothing in this Ordinance shall prohibit the City from regulating rates for Cable Services to the full extent permitted under federal Law, as it may be amended in the future. The City reserves the right to implement future legislation consistent with applicable Law, and to petition the FCC for relief as may be permitted by Law. (b) Any rate or charge established for Cable Service, equipment, repair and installation shall be reasonable to the public and, to the extent applicable, in compliance with FCC guidelines. Where FCC guidelines exist, Licensee's compliance with such guidelines shall 0 Page 83 of 89 02 917 be considered reasonable. Upon written request from the City or its agent, Licensee shall provide all requested • data, records and documentation to show the reasonableness of the rates so long as such requests comply with FCC guidelines or other applicable Law. (c) Should a Licensee desire to change any rate or charge, it shall submit a written notice of the amounts and effective date of such changes to the City Manager in a manner consistent with Federal Communications Commission cable rate regulation standards or other applicable Law in effect at the time. Prior to the implementation of a change in rates, the City may require the Licensee to notify each Subscriber, by (1) placing an announcement of not less than one quarter page in a newspaper(s) of general circulation, or (2) via the Cable System, or (3) through bill inserts, of the proposed rate change and the date the new rates will be effective. (d) A Licensee granted a License pursuant to this ordinance may provide reasonable discount rates consistent with Section 623(e)(1) of the Cable Act, in a manner acceptable to the City, for qualified Subscribers over 62 years of age and/or residing in government funded housing pursuant to 42 U.S.C. 1437f. Section 11-28. Area Wide -Interconnection. (a) Upon request of the City, a Licensee shall • interconnect with any or all other Cable Systems located within the City or serving Subscribers within the City. Interconnection of Systems shall be for the sole purpose of permitting interactive transmission and reception of public, government and education program material, and may be done by direct cable connection, microwave link, satellite, or other appropriate method, as mutually agreed by the affected Cable Operators and approved by the City Manager. (b) Licensee shall, where it does not own the affected System or Systems,, immediately initiate good faith negotiations with the operators of the other affected System or Systems in order to facilitate the construction and operation of the Interconnection link and the equitable sharing of costs among the Page 84 of 89 • C participants. Licensee shall report to the City the results of such negotiation no later than thirty (30) calendar days after the date of receipt of request from the City. Where Licensee owns the affected System, Licensee shall report to the City on the timing and, method of Interconnection within fifteen (15) calendar days of receipt of the City's request. (c) The Licensee may be granted reasonable extensions of time to interconnect if the City finds that (1) the Licensee has negotiated in good faith and has failed to obtain an approval from the System or Systems of the proposed Interconnection; or (2) the cost of the Interconnection would be unreasonably high. Section 11-29. Performance Evaluation. (a) The City may conduct periodic performance evaluations of a Licensee as the City determines is necessary. A Licensee shall fully cooperate with these evaluations in good faith. Evaluation session shall be properly noticed and open to the public. (b) Topics which may be discussed at any evaluation session may include, but are not limited to, Cable Service; application of new technologies; Cable System performance; Cable Services provided; programming offered; Subscriber complaints; privacy; modifications to License; judicial and FCC rulings; and the City or Licensee rules; provided that nothing in this subsection shall be construed as requiring the renegotiation of a License. (c) If the City implements a survey of cable Subscribers in connection with a performance evaluation, the City may require a Licensee to distribute a City questionnaire to its Subscribers at Licensee's expense, provided however that such distribution at Licensee's expense shall not occur more than once every two (2) years. The City shall provide a Licensee with no less than four (4) months notice of its intent to implement a survey as set forth herein. The City and a Licensee shall cooperate and mutually agree on the content of such a survey. Page 85 of 89 02- 917 0( W (d) Upon request and upon reimbursement of the City's copying costs, the Licensee may receive copies of all responses. Section 11-30. Administration. (a) The City Manager, either directly or through a duly appointed designee, shall have the responsibility for overseeing the day-to-day administration of this Ordinance and License Agreements. The City Manager shall be empowered to take all administrative actions on behalf of the City, except for those actions specified in this Ordinance that are reserved to the City Commission. The City Manager may recommend that the Commission take certain actions with respect to the License. The City Manager shall keep the Commission updated of developments in cable technology and provide the City Commission with assistance, advice and recommendations as appropriate. (b) Subject to federal and state Law, the City Commission shall have the sole authority to regulate rates for Cable Services, grant Licenses, authorize the entering into of License Agreements, modify License Agreements, renew or deny renewal of Licenses, revoke Licenses, and authorize the Transfer of a License. Section 11-31. Force Majeure. In the event the performance of the Licensee of, or compliance with, any of the provisions of this Ordinance or the License Agreement is prevented by a cause or event not within the control of the Licensee, such inability to perform or comply shall be deemed excused and no fines or sanctions shall be imposed as a result thereof, provided, however, that Licensee uses all practicable means to expeditiously cure or correct any such inability to perform or comply. For purposes of this Ordinance and any License Agreement granted or renewed hereunder, causes or events not within the control of the Licensee shall include, without limitation, acts of God, floods, earthquakes, landslides, hurricanes, fires and other natural disasters, acts of public enemies, riots or civil disturbances, sabotage, strikes and restraints imposed by order of a governmental agency or court. Causes or events within- control of the Licensee, and thus not Page 86 of 89 • • falling within this Section, shall include, without limitation, the financial inability of the Licensee to • perform or comply, economic hardship, and misfeasance, malfeasance or nonfeasance by any of directors, officers, employees, contractors or agents of the Licensee. Section 11-32. Applicability. This Ordinance shall be applicable to all cable Licenses granted, renewed or transferred on or after the effective date of this Ordinance, and shall apply to all cable Licenses granted prior to the effective date of this Ordinance, to the full extent permitted by state and federal Law. Section 11-33. Municipal Cable System Ownership Authorized. (a) To the full extent permitted by Law, the City may acquire, construct, own, and/or operate a Cable System. (b) Nothing in this Ordinance shall be construed to limit in any way the ability or authority of the City to acquire, construct, own, and/or operate a Cable System to the full extent permitted by Law. Section 11-34. Reservation of Rights. (a) The City reserves the right to amend this Ordinance as it shall find necessary in the lawful exercise of its police powers. (b) Any additional regulations adopted by the City shall be incorporated into this Ordinance and complied with by all Licensees within thirty (30) calendar days of the date of adoption of such additional regulations unless imposition of such regulations would be otherwise prohibited by applicable Law or the regulation provides for a longer time to comply. (c) The City reserves the right to exercise the power of eminent domain to acquire the property of the Cable System of the Licensee, consistent with applicable federal and state Law. Notwithstanding anything to the contrary, this Section shall not enlarge or restrict the 0 Page 87 of 89 02- 917 exercise of eminent domain of the City except to the • extent provided by applicable Law. (d) The City shall at all times have the right, upon reasonable notice and during normal business hours, to examine records and to inspect the facilities of the Licensee to the extent needed to monitor the compliance of the Licensee with and performance under this Ordinance and the License Agreement." Section 4.All sections or parts of sections of the Code of the City of Miami, all ordinances or parts of ordinances, and, all resolutions or parts of resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. Section 5.That all rates, fees, charges and financial obligations previously accrued pursuant to the ordinances and resolutions repealed pursuant to hereto shall continue to be due and owing until paid. Section 6.If any section, part of section, paragraph, clause, phrase or word of this Ordinance is declared invalid, the remaining provisions of this Ordinance shall not be affected. Section 7.This Ordinance shall become effective thirty (30) days after final reading and adoption thereof." This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective immediately upon override of the veto by the City Commission or upon the effective date stated herein, whichever is • later. Page 88 of 89 02- 917 PASSED ON FIRST READING BY TITLE ONLY this intra day of . Febru " 2000. PASSED AND ADOPTED ON SECOND AND FINAL READING BY TITLE ONLY this Rr_h _ day of y,,.,a 2000. JOE CAROLLO, MAYOR h accordance with Miami Code Sec. 2-36. since the Nater d.d rot frac!?tots, ct .his leois!ation by s, rine it in the design=ed ps-fc :.)W becomes effective with the elapse of ten (10) days f. -c;-,. tl-'- c: — L regarding same, without the M.,ayor exercisi a ATTEST: Walter Clerk --------------- WALTER J. FOEMAN CITY CLERK APPROVED TO RM AND COCTNESS W8 • RCL:YMT ��/qco Page 89 of 89 Q?- 9117