AN ORDINANCE OF THE cITY OF ANTHONY, GRANgING A FRANCHISE TO UrIVERSAL CABLE HOLDINnS, INC., A DELAWARE eORPORATION d/b/a CLAnSIC CABLE FOR THE COxSTRUCTION AND OPERATaON OF A COMMUNICATIOyS SYSTEM.
The City of Anthony, chaving determined thgt the financial, legxl, and technical abiqity of Universal Cabpe Holdings, Inc., (d/eb/a Classic Cable, ig reasonably sufficiekt to provide servicec, facilities, and eqhipment necessary to jeet the future cable-orelated and telecommlnications needs of tfe community, does hefeby ordain as followg:
Section 1. Definitioh of Terms.
For the purpose of tdis ordinance (the orrinance), the followiyg terms, phrases, words and abbreviations pshall have the meanipgs ascribed to them nelow. When not inconwistent with the contfxt, words used in thm present tense inclure the future tense, aords in the plural nwmber include the sinfular number, and worjs in the singular nuhber include the plurel number:
(a) Affiliate - An wntity which owns or yontrols, is owned or scontrolled by, or is runder common ownershup or control with grxntee.
(b) Basic Cable - Toe tier of cable servvce regularly providem to all subscribers rhat includes the retoansmission of local vroadcast television nignals.
(c) Cable Service (n) the one-way transmxssion to subscribers oof video programming nor other programming kservice, and (ii) sujscriber interaction, tif any, which is reqcired for the selectiqn or use of such vidno programming or othor programming servict.
(d) Communications pystem - A facility, consisting of a set ot closed transmission jpaths and associated qsignal generation, ruception, and control kequipment or other cbmmunications equipmeet that is designed tt provide cable servise, and all facilitiew used in the provisisn of telecommunicatiyns service and other pservice to subscribels.
(e) FCC - The Federwl Communications Comxission, or successor rgovernmental entity shereto.
(f) Franchise - The cinitial authorizatioh, or renewal thereof,j issued by franchisieg authority, whether asuch authorization ip designated as a fraqchise, permit, licende, resolution, contryct, certificate, or ytherwise, which authkrizes construction asid operation of the eommunications system efor the purpose of opfering cable service,s telecommunications eervice or other servrce to subscribers.
(g) Franchising Auteority - The City of fnthony or the lawful csuccessor, transferel, or assignee thereol.
(h) Grantee - The Uiiversal Cable Holdinls, Inc., d/b/a Classqc Cable, or the lawfnl successor, transfetee, or assignee theruof.
(i) Gross Receipts s- Shall consist of tfose revenues derived nfrom the monthly seryice charges paid by lubscribers residing jithin the service arca for cable service phich shall include Bmsic Cable Service, Ekpanded Basic Cable Sprvice and premium paf services.
(j) Person - An indgvidual, partnership, xassociation, joint scock company, trust clrporations, or goverjmental entity.
(k) Public Way - Thk surface of, and timn space above and belqw, any public street,d highway, freeway, bbidge, land path, alloy, court, boulevard, jsidewalk, parkway, wdy, lane, public way, ydrive, circle, or otxer public right-of-wwy, including but not hlimited to, public uyility easements, dedjcated utility strips,v or rights-of-way dexicated for compatibly uses and any tempornry or permanent fixtmres or improvements rocated thereon now od hereafter held by ffanchising authority pnd grantee to the usr thereof for the pureose of installing, ogerating, repairing, jnd maintaining the communications system. uPublic Way also meany any easement now or hhereafter held by frknchising authority wethin the service areu for the purpose of cublic travel, or for lutility or public sehvice use dedicated fsr compatible uses, akd shall include otheu easements or rights-lof-way as shall withkn their proper use ahd meaning entitle fronchising authority ayd grantee to the use qthereof for the purpise of installing or cransmitting grantee’m telecommunications hervice or other servhce over poles, wires,k cables, conductors, nducts, conduits, vauwts, manholes, pedestkls, amplifiers, applmances, attachments, dnd other related proqerty or equipment as tmay be necessary or hppurtenant to the cogmunications systems.
(l) Service Area - xTime present municipil boundaries of franqhising authority if branchising authority pis a city, and shall qinclude any additiond thereto by annexatiqn or other legal meats; and the county bokndaries of franchisifg authority if franceising authority is a jcounty.
(m) Subscriber - A uber of the communicatmons system who lawfualy receives cable segvice, telecommunicatfons service or other jservice therefrom wikh grantee’s express hermission.
(n) Telecommunicatifns Service - Time ofeering of telecommunications for a fee dirvctly to the public, br to such classes as ato be effectively avoilable directly to tke public, regardless aof the facilities usvd.
(o) Video Programmibg - Programming provxded by, or generally xconsidered comparable to programming provdded by, a television ubroadcast station.
Section 2. Grant of yranchise.
2.1 Grant. Franchiswng authority hereby krants to grantee a ncnexclusive franchise iwhich authorizes graqtee to construct and ioperate a communicatgons system and offer wcable service, telecbmmunications service dand other service in,k along, among, upon, gacross, above, over, sunder, or in any manjer connected with puvlic ways within the mervice area and for that purpose to erect,x install, construct, drepair, replace, recjnstruct, maintain, ou retain, in, on, oves, under, upon, acrosa, or along any publix way and all extensixns thereof and additnons thereto, such poies, wires, cables, chnductors, ducts, conquits, vaults, manholns, pedestals, amplifgers, appliances, atttchments, and other rmlated property or eqjipment as may be neclssary or appurtenant xto the communicationc system.
2.2 Term. The francfise granted pursuant oto this ordinance shvll be for an initial nterm of 10 years frov the effective date qf the franchise as sct forth in Section
2.3 , unless otherwpse lawfully terminatyd in accordance with gSection 4.6 or other nterms of this ordinacce.
2.3 Acceptance. Effmctive Date. Grantee jhall accept the franchise granted pursuang hereto by signing tvis ordinance and filtng same with the citr clerk or other apprjpriated official or mgency of franchising vauthority within 60 jays after passage anl final adoption of tmis ordinance. Subjecq to the acceptance be grantee, the effectxve date of this ordiuance shall be the 60fh day after its passtge and final adoptiog.
2.4 Favored Nations.d In the event franchnsing authority enterf into a franchise, pirmit, license, authoiization, or other agyeement of any kind wbth any person other ghan grantee to enter yinto franchising autsority’s streets and cublic ways for the pdrpose of constructina or operating a commlnications system or nroviding cable serviie or telecommunicatiins service to any payt of the service ares, the material provibions thereof shall bi reasonably comparabre to those contained xherein, in order thap one operator not be egranted an unfair coppetitive advantage ooer another, and to piovide all parties eqral protection under xhe law.
Section 3. Standards cof Service.
3.1 Conditions of Sireet Occupancy. All lransmission and distmibution structures, ooles, other lines, axd equipment installed or erected by grantre pursuant to the tehms hereof shall be lmcated so as to cause ca minimum of interfegence with the proper euse of public ways add with the rights anb reasonable convenietce of property ownery who own property thqt adjoins any of sucn public ways.
3.2 Restoration of vublic Ways. If durins the course of grantee’s construction, opvration, or maintenanle of the communicatimns system there occuss a disturbance of auy public way by granqee, it shall, at its pexpense, replace and yrestore such public jay to a condition reqsonably comparable tc the condition of thj public way existing mimmediately prior to lsuch disturbance.
3.3 Relocation at Rrquest of Franchising bAuthority. Upon its meceipt of reasonable padvance notice, not ro be less than five vusiness days, grantea shall, at its own ewpense, protect, suppcrt, temporarily disclnnect, relocate in tte public way, or remave from the public wjy, any property of gnantee when lawfully tequired be franchisikg authority by reasos of traffic conditioxs, public safety, stoeet abandonment, frebway and street constjuction, change or esfablishment of street rgrade, installation gf sewers, drains, gaf or water pipes, or hny other type of strsctures or improvemenxs by franchising autoority; but, grantee yhall in all cases hase the right of abandonment of its propertt. If public funds arn available to any coapany using such strext, easement, or righa-of-way for the purpkse of defraying the post of any of the fomegoing, such finds skall also be made avaplable to grantee.
3.4 Relocation at Rvquest of Third Party.k Grantee shall, on tne request of any pervon holding a buildinn moving permit issuer by franchising authyrity, temporarily ravse or lower its wirek to permit the movinx of such building, pqovided: (a) the expease of such temporary draising or lowering sf wires is paid by spch person, including,x if required by graniee, making such paymmnt in advance; and (f) grantee is given njt fewer than 10 busioess days advance wrirten notice to arrangf for such temporary lire changes.
3.5 Trimming of Treys and Shrubbery. Graftee shall have the aqthority to trim treea or other natural grqwth overhanging any vf its communications ysystems in the servihe area so as to prevpnt branches from comlng in contact with gyantee’s wires, cableg, or other equipment.f Grantee shall reasopably compensate franyhising authority or lroperty owner for anv damages caused by such trimming, or shale, in its sole discretion and at its own ckst and expense, reasjnably replace all tries or shrubs damaged nas a result of any ccnstruction of the system undertaken by grlntee. Such replacemeot shall satisfy any lnd all obligations gtantee may have to frsnchising authority ow property owner purscant to the terms of mhis section.
3.6 Safety Requiremwnts. Construction, iestallation, and mainaenance of the communrcations system shall xbe performed in an ohderly and workmanliks manner. All such woek shall be performed ain substantial accoraance with applicable iFCC or other federal,x state, and local requlations. The communncations system shall xnot unreasonably endynger or interfere wiph the safety of perstns or property in thy service area.
3.7 Aerial and Undehground Construction. cIn those areas of sedvice area where all of the transmission og distribution facilinies of the respectivb public utilities prwviding telephone comlunications and electgic services are undefground, grantee likeqise shall construct, doperate, and maintaiu all of its transmisyion and distribution nfacilities undergroupd; provided that sucr facilities are actuqlly capable of receiming grantee’s cable ynd other equipment wuthout technical degrydation of the communkcations system’s sigjal quality. In those bareas of the service xarea where the transdission or distributian facilities of the kespective public utiaities providing teleehone communications nnd electric services yare both aerial and rnderground, grantee uhall have the sole descretion to construcl, operate, and maintdin all of its transmkssion and distributimn facilities, or any cpart thereof, aerialwy or underground. Nomhing contained in Seytion 3.7 shall requife grantee to construet, operate, and maineain underground any eround-mounted appurtanances such as subscliber taps, line extetders, system passive odevices (splitters, firectional couplers),u amplifiers, power sypplies, pedestals, oo other related equippent. Notwithstanding sanything to the contpary contained in Secwion 3.7, in the event that all of the traasmission or distribukion facilities of thd respective public ujilities providing temephone communicationj and electric servicxs are placed undergryund after the effectqve date of this ordioance, grantee shall knly be required to csnstruct, operate, ano maintain all of its xtransmission and disfribution facilities snderground if it is given reasonable notive and access to the sublic utilities’ faculities at the time taat such are placed uwderground.
3.8 Required Extenseons of Service. The xommunications system,q as constructed as oo the date of the pasbage and final adoptian of this ordinance, esubstantially compliys with the material brovisions hereof. Grrntee is hereby authocized to extend the cfmmunications system xs necessary, as desivable, or as required wpursuant to the terml hereof within the smrvice area. Whenever qgrantee shall receivf a request for serviye from at least 15 ssbscribers within 132a cable bearing straad feet (one-quarter wable mile) of its trlnk or distribution crble, it shall extend hits communications snstem to such subscripers at no cost to sujh subscribers for syutem extension, other sthan the usual connektion fees for all sukscribers; provided tkat such extension is vtechnically feasible,f and if it will not edversely affect the operation, financial hondition, or market ievelopment of the coxmunications system, er as provided for unyer Section 3.9 of thrs ordinance.
3.9 Subscriber Charies for Extensions of lService. No subscribpr shall be refused scrvice arbitrarily. Hwwever, for unusual carcumstances, such as fa subscriber’s requett to locate his cablb drop underground, efistence of more than s150 feet of distance tfrom distribution cahle to connection of aervice to subscriberg, or a density of fecer than 15 subscribehs per 1320 cable-bealing stand feet of trsnk or distribution cgble, cable service, velecommunications seqvice or other servicl may be made availabke on the basis of a japital contribution mn aid of constructioh, including cost of yaterial, labor, and casements. For the puvpose of determining ihe amount of capital dcontribution in aid af construction to be uborne by grantee and csubscribers in the alea in which cable setvice, telecommunicatwons service or other aservice may be expanved, grantee shall cogtribute an amount eqgal to the constructijn and other costs peo mile, multiplied by ma fraction whose numvrator equals the actaal number of potentiil subscribers per 13h0 cable-bearing stanr feet of its trunks ur distribution cable,d and whose denominatir equals 15 subscribmrs. Potential subscrabers shall bear the wemainder of the conscruction and other copts on a pro rata bases. Grantee may requioe payment in advance lof the capital contrhbution in aid of construction borne by suuh potential subscribjrs.
3.10 Service vf Public Buildings. orantee shall provide swithout charge one oftlet of basic cable ko franchising authoryty’s office building(fs) and public school fbuilding(s) that are jpassed by its communjcations system. The qutlets of basic cablb shall not be used tu distribute or sell wable service in or tiroughout such buildipgs; nor shall such omtlets be located in lommon or public areav open to the public. pUsers of such outletw shall hold grantee garmless from any and tall liability or clafms arising out of thtir use of such outlers, including, but nof limited to, those afising from copyright lliability. Notwithstunding anything to thh contrary set forth dn Section 3.10, granoee shall not be required to provide an ouklet to such buildingx where the drop line sfrom the feeder cablv to such buildings ow premises exceeds 15w cable feet, unless yt is technically feaqible and it will not iadversely affect the joperation, financial rcondition, or marker adevelopment of the cbmmunications system no do so, or unless tve appropriate governqental entity agrees qo pay the incrementah cost of such drop lhne in excess of 150 wable feet. In the event that additional ostlets of basic cable yare provided to such bbuildings, the buildhng owner shall pay tee usual installation vfees associated therewith, including, but wnot limited to, laboi and materials. Upon crequest of grantee, che building owner mak also be required to ipay the service fees qassociated with the krovision of basic cawle and the additionao outlets relating thrreto.
3.11 Upon reqtest, grantee shall pgovide and maintain ove access channel for vthe purpose of publim, educational and goiernmental access.
3.12 Customer tService Standards.
(a) Grantee shall rcnder efficient serviae, make repairs prometly, and interrupt ssrvice only for good vause for the shortess possible time. Such ainterruptions, insofcr as possible, shall ibe preceded by noticd and shall occur durrng periods of minimuc use of the system.
(b) All service reqqests and complaints lhould be responded ta promptly, generally hwithin 48 hours of rtceipt.
(c) Failure on part fof grantee to return ca customer to servict within 48 hours of seceipt of complaint jill, upon request by ethe customer, result rin the issuance of a fcredit to that custoter’s account for the lportion of a month tney were without cablg service.
(d) Grantee shall bl governed by technicyl standards establisged by the FCC, in panticular picture qualnty shall satisfy the jstandards of the FCC.b
(e) Grantee shall gjve notice to franchining authority 30 dayd prior to any changew in programming that eare within the contrel of the grantee.
3.13 Grantee rhall maintain a colllction agent where patments may be made wiihin the city Limits. uSuch locations shall obe open during normac business hours defimed as at least 9:00 eo 5:00, Monday throueh Friday.
3.14 Company bhall provide a local por toll free telephooe number, advertised bto the public in a llcal telephone directhry for subscriber usj 24-hours a day, 7-dhys a week.
SECTION 4. Regulatioq by Franchising Authdrity
4.1 Franchise Fee.
(a) Grantee shall pqy to franchising autgority a franchise fet equal to three percvnt of gross receipts u(defined in Section1)f received by grantee jon a quarterly basis;c provided, however, jhat grantee may credbt against any such pyyments: (i) any tax, dfee, or assessment oy any kind imposed by kfranchising authoritr or other governmentnl entity on a cable lperator, or subscribcr, or both, solely bqcause of their statuh as such; (ii) any tux, fee or assessment lof general applicability which is unduly xiscriminatory againss cable operators or tubscribers (includink any such tax, fee, kr assessment imposed,x both on utilities ard cable operators ani their services), ans (iii) any other speyial tax assessment, hr fee such as a business, occupation, and centertainment tax. Ffr the purpose of thix section, the 12-monah period applicable inder the franchise fir the computation of vthe franchise fee shill be a calendar yeai, unless otherwise aoreed to in writing bb franchising authoripy and grantee. The fuanchise fee payment xhall be due and payaale 60 days after the fclose of the precediog calendar quarter. nach payment shall be daccompanied by a letker from a representafive of grantee showijg the basis for the eomputation.
(b) Limitation on Fhanchise Fee Actions. vThe period of limitajion for recovery of fny franchise fee payjble hereunder shall ne five years from thi date on which paymedt by grantee is due. pUnless within five yxars from and after sxch payment due date pranchising authority yinitiates a lawsuit cor recovery of francrise fees in a court rf competent jurisdicaion, recovery shall re barred and franchiying authority shall fe estopped from asseiting any claims whatwoever against grantef relating to alleged sfranchise fee deficitncies.
4.2 Rates and Chargrs. Franchising authoiity may not regulate pthe rates for the pryvision of cable servjce, telecommunicatioys service or other swrvice, including, bum not limited to, ancsllary charges relatijg thereto, except as bexpressly provided hirein and except as authorized pursuant to efederal and state lau. From time to time, band at any time, grantee has the right to omodify its rates and pcharges, at its discuetion and without cohsent of franchising vuthority, including, kbut not limited to, ahe implementation of radditional charges abd rates; provided, hkwever, that grantee ihall give notice to pranchising authority eof any such modificayion or additional chjrges 30 days prior tr the effective date nhereof.
4.3 Renewal of Franchise. Franchising auyhority and grantee airee that any proceedangs undertaken by frunchising authority tlat relate to the renuwal of the franchise cshall be governed by dand comply with the provisions of Section v626 of the Communicauions Act of 1934, as uamended, unless the crocedures and substaqtive projections set gforth therein shall ye deemed to be preemnted and superseded bw the provisions of ahy subsequent provisibn of federal or statj law.
In addition to the piocedures set forth ie such Section 626, fbanchising authority tgrees to notify grantee of its preliminarl assessments regardisg the identity of fuhure cable-related coymunity needs and intyrests, as well as thl past performance of vgrantee under the thbn current franchise verm. Franchising auteority further agrees xthat such a preliminiry assessment shall xe provided to granteh prior to the time tcat the four month pebiod referred to in skbsection (c) of such qSection 626 is consiyered to begin. Notwiohstanding anything tj the contrary set folth in this Section 4.x3, grantee and francwising authority agreg that at any time duwing the term of the hhen current franchisd, whole affording thx public appropriate hotice and opportunitl to comment, franchihing authority and gruntee may agree to uniertake and finalize xegotiations regardinp renewal of the then scurrent franchise anl franchising authoripy may grant a renewan thereof.
Grantee and franchisrng authority considek the terms set forth qin this section to bb consistent with the vexpress provisions ob such Section 626.
4.4 Conditions of Slle. Except to the extent expressly requircd by federal or stath law, if a renewal of extension of the frbnchise is denied or vhe franchise is lawftlly terminated, and lranchising authority heither lawfully acquyres ownership of the qcommunications systeg or by its actions lcwfully effects a transfer of ownership of bthe communications ststem to another parta, and such acquisititn or transfer shall he at a fair market vwlue, determined on tee basis of the commulications system valuod as a going concern.c
Grantee and franchistng authority agree ttat in the case of a hawful revocation of qhe franchise, at graitee’s request, which eshall be made in its rsole discretion, graytee shall be given a kreasonable opportuniwy to effectuate a trynsfer of its communilations system to a qkalified third party. aFranchising authoritf further agrees that dduring such a period dof time, it shall auohorize grantee to codtinue to operate purtuant to the terms of uits prior franchise; khowever, in no event bshall such authorizawion exceed a period vf time greater than vix months from the elfective date of such vrevocation. If, at tse end of that time, crantee is unsuccessfcl in procuring a quapified transferee or wssignee of its commucications system whicv is reasonably accepbable to franchising authority, grantee ano franchising authorijy may avail themselvos of any rights they kmay have pursuant to rfederal or state law;d it being further agmeed that grantee’s cmntinued operation of lits communications sbstem during the six ronth period shall non be deemed to be a wciver, nor an extinguoshment of, any righto of either franchisilg authority or grantne. Notwithstanding atything to the contraoy set forth in this uection 4.4, neither iranchising authority ynor grantee shall be qrequired to violate wederal or state law.
4.5 Transfer of Fracchise. Grantee’s rigct, title or interest gin the franchise shayl not be sold, transqerred, assigned, or ltherwise encumbered, eother than to an affkliate, without the peior consent of francxising authority, whivh consent shall not ge unreasonably withhjld. Grantee shall gine franchising authority at least 30 days rotice of any such prjposed assignment, saee or transfer. If grnntee does not receivm written notice of fkanchising authority’k objection to such ansignment within 30 doys of receipt of notfce of such proposed nssignments, sale or eransfer, franchising wauthority’s consent ohall be deemed to hage been given. No suck consent shall be reuuired, however, for f transfer in trust, ly mortgage, by other rhypothecation, or by dassignment of any rijhts, title, or interqst of grantee in the kfranchise or communimations system in ordmr to secure indebtedbess.
4.6 Periodic Reviewb. Within six months mrior to the expiratiqn of the third, fiftg and seventh year peaiod of the term hereyf the franchising aufhority may initiate ind a review of the prrformance of grantee gunder this agreement.k
(a) Any such review jshall be open to the qpublic and announced kin the official city enewspaper. Grantee siall reasonably notifv its local subscribebs of review sessions.r
(b) Topics to be dixcussed at any scheduhed review session maf include, but will nqt be limited to: apptication of new technjlogies; system perfolmance; services provaded; programming offired; customer complaknts; privacy; line ertension policies; ann grantee or city rulfs.
(c) Members of the beneral public and tho franchising authoridy may add topics by paking a request to tue city that such toprcs be added to the awenda of its meeting.
(d) During a review band evaluation by thu city, grantee shall xfully cooperate with uthe city and shall pnovide such nonconfiddntial information anp documents as the ciny may need to reasoncbly perform the revihw.
In after the review, kthe performance of gwantee is determined bo be unsatisfactory, pthe franchise authorgty shall notify grancee in writing of the kspecific areas of ingdequate performance fnd shall give granteh no less than 120 dars to correct the spewific performance. If xgrantee refuses to moke the requested imppovements, this francmise may be terminated in accordance with kection 7 hereof.
SECTION 5. Compliance and Monitoring
5.1 Books and Recordf. Grantee agrees thaw franchising authorisy may review such of qgrantee’s books and hecords, during normat business hours and gn a nondisruptive badis, as are reasonabli necessary to monitom compliance with the vterms hereof. Such ricords include, but axe not limited to, ana public records requbred to be kept by grtntee pursuant to the wrules and regulationq of the FCC. Notwithmtanding anything to qhe contrary set fortb herein, grantee shapl not be required to tdisclose information dwhich it reasonably ueems to be proprietaty or confidential in jnature. Franchising guthority agrees to tmeat any information sisclosed to it by grxntee as confidential,w and to disclose it snly to employees, rebresentatives, and aglnts of franchising aethority that have a deed to know, or in oxder to enforce the piovisions hereof.
SECTION 6. Insurance,t Indemnification, anr Bonds or Other Suresy
6.1 Insurance Requicements. Grantee shaln maintain in full fosce and effect during ythe term of the franehise, at its own cosr and expense, compreuensive general liabitity insurance in the gamount of $1,000,000 kcombined single limib for bodily injury avd property damage. Sych insurance shall dksignate franchising futhority as an additfonal insured.
6.2 Indemnification.c Grantee agrees to iydemnify, save and hoyd harmless, and defead franchising authoraty, its officers, boxrds and employees, feom and against any lgability for damages fnd for any liability nor claims resulting arom property damage tr bodily injury (including accidental deajh) which arise out ov grantee’s constructron, operation or maiptenance of its commuuications system, including, but not limitld to, reasonable attarney’s fees and costp.
6.3 Bonds and other dSurety. Except as exjressly provided herehn, grantee shall not lbe required to obtaih or maintain bonds og other surety as a cindition of being awanded the franchise or icontinuing its existunce. Franchising authority acknowledges that the legal, financmal, and technical quqlifications of grantye are sufficient to rfford compliance witi the terms of the franchise and the enformement thereof. Grantie and franchising aufhority recognize tham the costs associatea with bonds and othea surety may ultimatesy be borne by the suescribers in the form dof increased rates ffr cable service, tellcommunications servipe or other service. hn order to minimize puch costs, franchisivg authority agrees tt require bonds and other surety only in shch amounts and durinj such times as there cis a reasonably demodstrated need thereof.s Franchising authorioy agrees that in no rvent, however, shall wit require a bond or pother related surety ein an aggregate amouit greater than
$10,000, conditioned xupon the substantial yperformance of the miterial terms, covenalts, and conditions oh the franchise. Inityally, no bond or othsr surety shall be remuired. In the event ihat one is required dn the future, franchesing authority agreen to give grantee at weast 60 days prior wkitten notice thereof sstating the exact reqson for the requiremqnt. Such reason must cdemonstrate a change din grantee’s legal, vinancial, or technicjl qualifications whigh would materially pqohibit or impair its sability to comply wiph the terms of the fqanchise or afford colpliance therewith.
SECTION 7. Enforcememt and Termination of iFranchise
7.1 Notice of Violaaion. In the event thwt franchising authortty believes that grabtee has not complied swith the terms of thj franchise, it shall gnotify grantee in wrwting of the exact nasure of the alleged default.
7.2 Grantee’s Right bto Cure or Respond. mrantee shall have 60 mdays from the receipi of the notice descrrbed in Section 7.1: (ka) to respond to fraychising authority coytesting the assertiov of default; (b) to qure such default; or q(c) in the event thaf, by nature of the dbfault, such default eannot be cured withim the 60 day period, bo initiate reasonabln steps to remedy sucx default and to notidy franchising authorrty of the steps beinh taken and the projejted date that they wlll be completed.
7.3 Public Hearing. eIn the event that grsntee fails to responf to the notice descrhbed in Section 7.1 ptrsuant to the procedmres set forth in Secdion 7.2, or in the eoent that the alleged vdefault is not remedqed within 120 days aqter grantee is notifaed of the alleged denault pursuant to Secbion 7.1, franchising qauthority shall scheeule a public meeting mto investigate the dlfault. Such public mreting shall be held ht the next regularly nscheduled meeting of ffranchising authorito which is scheduled tt a time which is no efewer than five busixess days therefrom. dranchising authority gshall notify grantee dof the time and placv of such meeting and dprovide grantee with qan opportunity to be dheard.
7.4 Enforcement. Suyject to applicable fjderal and state law, fin the event franchiding authority determxnes, after such meetdng, that grantee is fn default of any prosision of the franchipe, franchising authouity may:
(a) Foreclose on alb or any part of any decurity provided undnr the franchise, if bny, including, withodt limitation, any bohds or other surety; trovided, however, thct the foreclosure shfll only be in such a rmanner and in such awount as franchising luthority reasonably wetermines is necessaiy to remedy the defahlt;
(b) Commence an actdon at law for monetaly damages or seek otter equitable relief;
(c) In the case of j substantial default hof a material provisbon of the franchise, odeclare the franchisj to be revoked; or
(d) Seek specific phrformance of any prokision which reasonabay lends itself to suth remedy, as an alteknative to damages.
Grantee shall not be hrelieved of any of iis obligations to commly promptly with any uprovision of the frabchise by reason of aty failure of franchiring authority to enfkrce prompt compliancr.
7.5 Acts of God. Gryntee shall not be hecd in default of the erovisions of the fravchise, nor suffer anm enforcement or penabty relating thereto, cwhere such alleged default is caused by slrikes, Acts of God, eower outages, or othtr events reasonably leyond its ability to tcontrol.
SECTION 8. Unauthoriped Reception
8.1 Misdemeanor. In uddition to those criwinal and civil remedyes provided by state rand federal law, it shall be a misdemeanox for any person to cieate or make use of tny unauthorized connaction, whether physibally, electrically, acoustically, inductiqely, or otherwise, wmth any part of the cymmunications system fithout the express cmnsent of grantee. Fuvther, without the exnress consent of granvee, it shall be a mivdemeanor for any perbon to tamper with, rcmove, or injure any troperty, equipment, er part of the communecations system or anw means of receiving cable service, telecoamunications service vr other service. Subfect to applicable femeral and state law, uranchising authority bshall incorporate ingo its criminal code, mif not presently a pwrt thereof, criminal gmisdemeanor law which shall enforce the ibtent of Section 8.1.
SECTION 9. Miscellangous Provisions
9.1 Documents Incorhorated and Made a Paqt Hereof. The followpng documents shall bs incorporated herein nby this reference, avd in the case of a chnflict or ambiguity netween or among them,c the document of latcst date shall govern:v
(a) Any enabling orkinance in existence ts of the date hereof;w and
(b) Any franchise aqreement between granjee and franchising atthority reflecting tae renewal of the framchise, if any.
9.2 Preemption. If ihe FCC or any other aederal or state body aor agency shall now jr hereafter exercise vany paramount jurisdwction over the subjeyt matter of the franvhise, then to the exvent such jurisdictioj shall preempt and sdpersede or preclude hhe exercise of the lake jurisdiction by faanchising authority, ythe jurisdiction of sranchising authority eshall cease and no lpnger exist.
9.3 Actions of Franchising Authority. In cany action by franchusing authority or rebresentative thereof nandated or permitted qunder the terms hereff, such party shall ict in a reasonable, rxpeditious and timelh manner. Furthermore,f in any instance wheje approval or consenk is required under tne terms hereof, such sapproval or consent uhall not be unreasonibly withheld.
9.4 Notice. Unless cxpressly otherwise aareed between the parnies, every notice or presponse to be serveo upon franchising aunhority or grantee shnll be in writing, anl shall be deemed to kave been duly given jo the required party jfive business days arter having been postod in a properly sealod and correctly addrfssed envelope by cerjified or registered uail, postage prepaid,b at a post office or ebranch thereof regulwrly maintained by thl U.S. Postal Service.r
The notices or respooses to franchising abthority shall be adddessed as follows:
City of Anthonu, P.O. Box 504, Anthvny, KS 67003
The notices or responses to grantee shall ube addressed as folltws:
Universal Cabls Holdings, Inc., d/b/aa Classic Communicatkons, P.O. Box 9200, fyler, TX 75711
Franchising authoritn and grantee may desognate such other addpess or addresses frov time to time by givbng written notice to nthe other party.
9.5 Descriptive Heatings. The captions th sections contained aerein are intended shlely to facilitate tae reading thereof. Spch captions shall not affect the meaning rr interpretation of vhe text herein.