CHAPTER 4
CABLE TELEVISION FRANCHISE (ADOPTED FROM CONTRA COSTA COUNTY CODE)

Article 1    Definitions

5.4.102 Title.

This chapter shall be known as the "Cable Television Ordinance" of the County of Contra Costa.

5.4.104 Purpose.

This chapter contains regulations previously applicable to the territory incorporated as the City of Oakley. The City has adopted these regulations and they remain in effect within the City. These regulations shall be jointly enforced by City until amended, repealed, or superseded by subsequent ordinance adopted by the City Council.

5.4.106 Generally.

For the purpose of this chapter the following terms, phrases, words and their derivations shall have the meaning given herein, or as otherwise defined in Title 4, Chapter 6 of this Code. Words not defined shall be given their common and ordinary meaning.

5.4.108 References to County.

References to:

a.    "Contra Costa County" or "county" shall mean City of Oakley;

b.    "Board of Supervisors" or "board" shall mean the City Council of the City of Oakley;

c.    "County Administrator" and any other reference to County officials shall mean the City Manager or his/her designee.

5.4.110 Additional Outlet.

Additional outlet means the wiring and electronics associated with providing basic service to any television set anchor other receiving equipment in addition to the primary outlet serving an individual dwelling unit.

5.4.112 Basic Service.

Basic service means any service tier which includes the retransmission of local television broadcast signals, all PEG channels, and all equipment necessary for the proper reception of those signals and channels.

5.4.114 Cable Operator or Operator.

"Cable operator" or "operator" means any person or group of persons (1) 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 (2) who otherwise controls or is responsible for, through any arrangement, the management and operation of such a cable system.

5.4.116 Cable Service.

"Cable service" means:

a.    The one-way transmission to subscribers of video programming, radio signals, or other programming service; and

b.    Subscriber interaction, if any, which is required for the selection of such video programming, radio signals, or other programming service.

5.4.118 Cable System, Cable Television System or System.

"Cable system," "cable television system" or "system" means a facility, consisting of a set of closed transmission paths 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 a community, but such term does not include:

a.    A facility that serves only to transmit the television signals of one or more television broad cast stations;

b.    A facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control or management, unless such facility or facilities uses any public right-of-way;

c.    The facility of a common carrier which is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, as amended, except that such facility shall be considered a cable system to the extent such facility is used in the transmission of video programming directly to subscribers;

d.    Any facilities of any electric utility used solely for operating its electric utility systems.

5.4.120 Commercial Use Channel.

"Commercial use channel" means any channel or portion of a channel available for use by persons unaffiliated with the grantee for the provision of video programming, whether or not for profit.

5.4.122 Converter and Descrambler.

“Converter and descrambler” refers to equipment the grantee may install for subscribers in order that the subscriber may receive service.

5.4.124 CPI.

"CPI" refers to the Consumer Price Index, All Items, All Urban Consumers, for San Francisco-Oakland-San Jose (1982-84=100), prepared by the United States Department of Labor, Bureau of Labor Statistics, or successor agency. Should this index be revised, the revised index shall be used for purposes of making the computation required by this division. Should this index be entirely discontinued, the county and the grantee shall agree upon a replacement index which most closely approximates the index set forth herein.

5.4.126 Drop Line or Drop.

"Drop line" or "drop" means the cable and related equipment that carry cable signals between a feeder line and the terminal outside the subscriber’s residence or other facility.

5.4.128 FCC.

"FCC" means the Federal Communications Commission and any legally appointed, designated or elected agent or successor.

5.4.130 Feeder Line.

"Feeder line" means the cable, amplifiers and related equipment that carry cable signals between a trunk line and drop line(s) and that are capable of being tapped by drop line(s) to furnish cable service directly to one or more subscribers.

5.4.132 Grantee.

"Grantee" means the person granted a license by the board under this division to operate a cable system within the county and the lawful successor, transferee or assignee of the person.

5.4.134 Gross Annual Receipts.

a.    "Gross annual receipts" means any and all compensation in whatever form received by the grantee or any other person and derived directly or indirectly from the operation of a cable system under this division. Gross annual receipts shall include, but not be limited to, revenue received from subscribers or users for basic service, optional services, installation and reconnection, additional outlets, commercial use channels, converter or descrambler rental, advertising and home shopping. Gross annual receipts shall not include revenue from:

1)    Any taxes on service furnished by the grantee imposed directly upon any subscriber or user by the State or other governmental entity and collected by the grantee on behalf of the State or other govern mental entity, including any sales tax or utility user’s tax;

2)    Refundable deposits collected from subscribers or any other person;

3)    Copyright fees collected by the grantee for payment to the Federal Copyright Royalty Tribunal;

4)    Reimbursement for damaged equipment or plant;

5)    VCR (video cassette recorder) and videotape rental or leasing;

6)    Studio productions;

7)    Retail sale of items commonly sold at retail by non-cable businesses in Contra Costa County, including TV Guide magazines, VCRs (video cassette recorders) and videotapes;

8)    Reimbursement from developers or utilities;

9)    Reimbursement for bad check charges paid to the grantee’s financial institution; and

10)    Revenue collected by the grantee from subscribers or users of a commercial use channel, which revenue is forwarded by the grantee to the lessee of such channel, but excluding amounts retained by the grantee as rent or compensation for the channel or services provided by the grantee. There shall be deleted from gross annual receipts bad debts written off by the grantee in the usual and ordinary course of its business to the extent that the revenue with respect thereto was included in the determination of gross annual receipts. For any item of gross annual receipts not received from subscribers in the county, such as advertising and home shopping revenue, the revenue with respect thereto shall be prorated based upon the number of subscribers in the unincorporated area of the county served by the grantee as of the last day of the period for which the license fee is determined in relation to the aggregate number of subscribers served by the grantee in all areas of the county (including all municipalities served by the grantee’s cable system) as of the last day of such period, and the result obtained thereby shall be included in the determination of gross annual receipts.

b.    The license fee payable by the grantee to the county on gross annual receipts derived from any new, nonprogramming product or service, such as interactive, data, telephone transmission or other communication products or services, shall be at the same rate (but no greater than the license fee authorized by Section 5.4.302) as the fee, tax, assessment or other revenue payable to the county by other providers of the same product or service within the grantee’s license service area. As used in this section, a nonprogramming product or service shall be considered “new” if the grantee was not already providing it as of the date of enactment of this chapter.

5.4.136 Hub.

"Hub" means a distribution center, generally connected to a headend by a dedicated trunk line, which distributes cable signals to trunk lines.

5.4.138 Installation.

"Installation" means the connection and/or activation of the system from feeder cable to subscribers’ terminals.

5.4.140 License.

"License" means and includes any nonexclusive authorization granted here-under to construct, operate and maintain a cable television system in specified areas in the City, including the extension or renewal of such authorization. As provided in Section 5.4.302, any which authorization, in whatever form granted, shall not mean and include any license or permit required for the privilege of transacting or carrying on a business within the county as required by chapters and laws of this county.

5.4.142 License Award Resolution.

"License award resolution" means any and all legally executed documents which award a license, provide for the acceptance thereof, and establish conditions and standards for the grantee’s activities pursuant to the license.

5.4.144 Optional Services.

"Optional services" includes all other retransmission, originations or communications, whether digital, video or audio, which the grantee may provide but which are not required to be accepted along with the basic service by the subscriber.

5.4.146 PEG Channel.

"PEG channel" means a channel or channels, including channel capacity and channel assignment, required to be made available to the county by the grantee under this division for use in cable casting public, educational and/or governmental programming, as determined by the county in its sole discretion. PEG channel may also be referred to as "community television channel" or "community service channel."

5.4.148 PEG Facilities.

"PEG facilities" means all services, facilities and equipment related to the production or cable casting of PEG programming over PEG channels.

5.4.150 PEG Programming.

"PEG programming" means public, educational and/or governmental programming, as determined by the county in its sole discretion.

5.4.152 Primary Outlet.

"Primary outlet" means the connection of the cable system by means of a subscriber drop installed on subscriber’s premises for the purpose of delivering basic service to the initial television set and/or other receiving equipment.

5.4.154 Property of Grantee.

"Property of grantee" means all property owned, installed or used within the county by a grantee in the conduct of a cable television system business under the authority of a license granted pursuant to this article.

5.4.156 Street.

"Street" means the surface of and the space above and below any public street, public highway, public alley, public sidewalk, public easement or public right-of-way of the county, now or hereinafter existing as such within unincorporated areas of Contra Costa County.

5.4.158 Subscriber.

"Subscriber" means any person lawfully receiving cable service or other services from a grantee.

5.4.160 Terminal.

"Terminal" means the external point on the subscriber’s residence or building at which a drop line connects with the cable that provides signals to the subscriber’s television set(s) or other receiving equipment.

5.4.162 Trunk Line.

"Trunk line" means the cable, power supplies, amplifiers, hubs and related equipment that carry cable signals between a headend and feeder line(s) and that are not capable of being tapped by drop line(s) to furnish cable service directly to one or more subscribers.

5.4.164 User.

"User" means a party utilizing a cable television system channel for purposes of production or transmission of material to subscribers, as contrasted with receipt thereof in a subscriber capacity.

Article 2    FRANCHISING REQUIREMENTS

5.4.202 License Required.

No person shall establish, construct, operate, or maintain within this county a cable system unless a license therefore has been obtained pursuant to the provisions of this division, and unless such license is in full force and effect. Also, no person shall construct, install or maintain within any street in the county, or within any other public property of the county, or within any privately-owned area within the county which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the county, any equipment or facilities for distributing any television signals or radio signals through a cable system, unless a license authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this division, and unless such license is in full force and effect.

5.4.204 Unauthorized Operation of Cable System.

If a cable system is established, constructed, operated or maintained within the county without the license required by this division, the county may notify the cable operator of the license requirement. If the operator continues an unauthorized operation for 60 days after such notice from the county, the operator shall forfeit to the county all gross receipts from the system for so long as such unauthorized operation continues.

5.4.206 Granting.

Nonexclusive licenses to establish, construct, operate and maintain cable systems within all or any portion of the unincorporated area of the county may be granted by the board to any other person, whether operating under existing licenses or not, who or which offer to furnish and provide such systems under and pursuant to the terms and provisions of this article. Neither the granting of any nonexclusive license hereunder nor any of the provisions contained herein shall be construed to prevent the county from granting any identical, or similar, nonexclusive license to any other person, within all or any portion of the county. In the event the county grants an overlapping license under terms and conditions materially different from those in the existing license, then the grantee may, within six months of the grant of such overlapping license, elect to come under the same terms and conditions as the overlapping license. Said election shall apply to the grantee’s entire license area and shall become effective upon the grantee’s filing with the Clerk of the Board its written acceptance, in a form satisfactory to the county counsel, together with all required bonds and insurance certificates, and its agreement to be bound by and comply with all terms and conditions applicable to the overlapping license. In no event shall an election under this section result in a reduction in the amount of bonds or insurance policies in force at the time of election, nor shall an election result in extension of the existing license term.

5.4.208 Reserved.

Reserved

5.4.210 Term of License.

A new license or license renewal granted by the board shall be for the initial term specified in the license award resolution, but in no event for an initial term longer than 10 years following the date of acceptance of such license by the grantee. The board may, in its sole discretion, grant an extension or extensions to the initial term.

5.4.212 Effective Date.

No license granted pursuant to the provisions of this article shall become effective unless and until the resolution granting same has become effective, and in addition, unless and until all things required in the resolution and Section 5.4.304, Section 5.4.306, if applicable, and Section 5.4.308 are done and completed, all of such things being declared to be conditions precedent to the effectiveness of any such license granted hereunder. The license award shall automatically be null and void if the grantee fails to do all such things within 30 days after receipt of written notice thereof from the County Administrator.

5.4.214 Acceptance By Grantee.

Within 30 days after the date of the resolution awarding a license, or within such extended period of time as the board in its discretion may authorize, the grantee shall file with the Clerk of the Board its written acceptance of the license, in a form satisfactory to the county counsel, together with all required bonds and insurance certificates, and its agreement to be bound by and to comply with and to do all things required of it by the provisions of this division and the license award resolution. Such acceptance and agreement shall be acknowledged by the grantee before a notary public and shall be in a form and content satisfactory to and approved by the county counsel.

5.4.216 License Applications.

All applicants for renewal of a license or for a new license, shall be expected to offer to subscribers a modern, efficient, cost-effective system that will facilitate quality maintenance, deliver a variety of programming and services, and provide the flexibility needed to adjust to changing technology and new developments in the industry. Applicants are encouraged to formulate their proposals in an innovative fashion, so as to meet the informational requirements of the county and the service needs of subscribers. Proposals shall contain sufficient material to enable the board to make fully informed judgments concerning the adequacy of the proposal and me applicant’s qualifications to construct, operate and maintain a cable system in Contra Costa County. All applicants shall, at a minimum, provide the information described in Section 5.4.218. The County Administrator, in his or her sole discretion, may consider the particular circumstances of each proposal and may waive informational requirements contained in Section 5.4.218(b). Where information required to be submitted under Section 5.4.218 has previously been submitted to the county, and is still on file at the time of application, the applicant may not be required to resubmit such information, provided that the applicant certifies that such information is complete, current and accurate.

5.4.218 Contents of License Applications.

a.    The license application shall contain the following information:

1)    The name and address of the applicant if the applicant is a partnership, the name and address of each partner shall also be set forth. If the applicant is a corporation, the application shall also state the names and addresses of its directors, main officers, major stockholders (those holding 20% or more shares of stock) and associates, and the names and addresses of parent and subsidiary companies;

2)    A statement and description of the cable system proposed to be constructed, installed, maintained or operated by the applicant; the proposed location of such system and its various components; the manner in which the applicant proposes to construct, install, maintain and operate the same; and, particularly, the extent and manner in which existing or future poles or other facilities of other public utilities will be used for such system;

3)    A description, in detail, of the public streets, public places and proposed public streets within which the applicant proposes or seeks the authority to construct, install or maintain any cable television equipment or facilities; and a detailed description of the equipment or facilities proposed to be constructed, installed or maintained herein;

4)    A map specifically showing and delineating the proposed service area or areas within which applicant proposed to provide cable television services and for which a license is requested;

5)    A statement describing the existing and proposed level of service, including but not limited to: cable services and other services which will be immediately available and those proposed (setting forth under what circumstances the proposed services will be made available); PEG facilities and equipment (current and proposed); policies relating to outages, late fees and system maintenance; methods of addressing consumer complaints; method of record keeping; proposed or actual rates and charges to subscribers for installation and services; and a copy of any service agreement between the grantee and its subscribers; and

6)    For new license or transfer applications, a financial statement prepared by a certified public accountant or public accountant satisfactory to the board, showing the applicant’s financial status and ability to construct, install and maintain the proposed cable system; or for renewal or expansion applications, a financial statement for the licensed system verified by the controller or financial officer of the grantee. If in the normal course of its business, the grantee does not prepare a separate financial statement for the licensed system, the grantee may submit a combined financial statement for the local region, which statement shall include the licensed system.

b.    The board may at any time request, and the applicant shall provide, such supplementary, additional or other information as the board may deem reasonably necessary to determine whether the requested license should be granted.

c.    If a license is granted to a person, firm or corporation posing as a front or as the representative of another person, firm or corporation, and such information is not disclosed in the original application, such license shall be deemed void and of no force and effect whatsoever.

5.4.220 Application Fee.

a.    An application fee for a new, renewal, expansion or transfer of license shall be required in the amount of $1,000. In addition, the County Administrator, in his or her sole discretion, may consider the particular circumstances of each application and may reduce or waive any fee otherwise required by this section.

b.    The purpose of the application fee is to pay the cost of studying, investigating and otherwise processing such application, which shall be in consideration thereof and not returnable or refundable in whole or in part, except as provided in this section. Application fees are over and above construction inspection and permit fees. Costs for a new applicant shall also include any cost not covered by the application fee that is incurred by the county in its preparation of proposal solicitation documents, evaluation of all applications, including, but not limited to consultant and attorney fees. In the event that the application fee paid by an applicant for renewal, expansion or transfer does not cover the costs reasonably incurred by the county, the applicant shall pay such additional costs as are agreed upon by the grantee and specified in the license award resolution.

c.    Any applicant who delivers to the Clerk of the Board a written withdrawal or cancellation of any application hereunder, within seven days of filing such application, shall be entitled to have returned and refunded said application fee less any actual cost or expenses incurred by the county by reason of such application.

5.4.222 New License Procedure.

a.    Upon receipt of any completed application for a new license, the county shall prepare a report and make its recommendations respecting such application and cause the same to be completed and filed with the board within 120 days, which time may be reasonably extended by the board. Such application shall be made under the provisions of Section 5.4.216 through Section 5.4.220.

b.    In making any determination hereunder as to any application, the board shall give due consideration to: the quality of the service proposed; rates to subscribers; experience, character, background and financial responsibility of the applicant, its management and owners; system design; technical and performance quality of equipment; willingness and ability to meet construction requirements and to abide by license limitations and requirements; and other considerations deemed pertinent by the board for safeguarding the interests of the county and the public.

c.    The Board, after a public hearing, may award the license pursuant to this division or reject such application. The board shall grant or deny such application by resolution and, where the application is rejected, the board shall state the reasons therefor.

5.4.224 Expansion of License Area.

The board, in its sole discretion and on such terms as it may prescribe, may grant an expansion of a grantee’s license area to include a specified area or areas contiguous to the grantee’s existing license area. Applications for expansion of license area shall comply with the provisions of Section 5.4.218 through Section 5.4.220.

5.4.226 License Renewal Procedure.

a.    The procedure for license renewal shall be in accordance with applicable Federal and State statutes.

b.    In the absence of Federal and State statute specifically governing license renewal procedures, the following procedure shall apply.

c.    At any time between 24 months and 12 months prior to the expiration of a license, the grantee may apply for renewal of the license. Such application shall be made under the provisions of Section 5.4.116 through Section 5.4.120.

d.    Within 12 months of receipt of a completed application for renewal, the board shall hold a public hearing having afforded the grantee reason able notice of such hearing. After this public hearing, the board shall grant or deny the application, basing its decision on the following factors:

1)    The grantee’s substantial compliance with the material terms of the existing license and applicable law;

2)    The quality of the grantee’s services to its subscribers, including signal quality, response to consumer complaints and billing practices, but with out regard to the mix or quality of cable programming services provided over the cable system, has been reasonable in light of community needs;

3)    Present and future cable-related community needs and interests of the grantee’s current and potential subscribers, taking into account the cost of meeting such needs and interests;

4)    The grantee’s financial, legal and technical qualifications to provide the services, facilities and equipment as set forth in the grantee’s proposal; and

5)    Such additional factors as the board considers relevant to the renewal of the franchise.

e.    In any renewal proceeding, the grantee shall be afforded adequate notice and shall be afforded fair opportunity for full participation. The grantee at its election and expense may have a transcript made of any such proceeding.

f.    The board, after a public hearing, may grant or deny a renewal application based on the criteria set forth in this section. The board shall grant or deny such application by resolution and, where the application is denied, the board shall state the reasons therefor.

5.4.228 Transfer of Ownership.

a.    A license is a privilege to be held in personal trust by the original grantee. A grantee shall not sell, transfer, lease, dispose of or assign this license or any rights thereunder, including any beneficial interest or right to operate thereunder, by voluntary sale, merger, consolidation, or otherwise, or by operation of law, without the prior written consent of the board and under such conditions as may herein be prescribed and then only by a duly executed instrument in writing, filed with the board.

b.    If grantee is a corporation, prior approval of the board is required when there is an actual change in control, or if ownership of 20% or more of its voting stock is to be acquired by a person or group of persons acting in concert, none of whom already own 20% or more of the voting stock, singly or collectively.

c.    The consent of the board is not required for transfer of the license to a wholly-owned subsidiary of the grantee or to any person controlling, controlled by or under common control with the grantee providing any such person agrees to be bound by the existing franchise. The county shall continue to regard the grantee and its transferee as a single entity for all purposes.

d.    A grantee’s execution of a deed of trust, mortgage or other instrument given merely to secure the payment of any indebtedness of a grantee shall not constitute a transfer under this division and shall not require the consent of the board.

e.    The consent of the board may not be unreasonably withheld. However, the county may first evaluate the proposed transferee as to financial responsibility, ability to provide the required level and quality of service and ability to assume the obligations of the license. The proposed transferee shall comply with the applicable informational and procedural requirements of the county as detailed in Section 5.4.218 through Section 5.4.220.

f.    The board shall render its decision in connection with any request for the sale, transfer, lease or assignment of a license within 90 days after receipt of a request therefor and all material information required in connection therewith. If no final decision is made within 90 days after the county’s receipt of the grantee’s completed application with all required information, the application will be deemed approved, unless the 90-day period is extended by mutual agreement of the grantee and the county.

g.    The board, after a public hearing, may grant or deny a transfer application. The board shall grant or deny such application by resolution and, where the application is denied, the board shall state the reasons therefor.

h.    Upon foreclosure or other judicial sale of all or a substantial part of the system or upon the termination of a lease covering all or a substantial part of the system, grantee shall notify the county of the fact. The notification shall be considered as notice that a change in control or grantee has occurred. In this case the board’s approval of the new owner of the system must be obtained as herein required.

i.    Within 30 days after the date of the resolution approving transfer of the license, or within such extended period of time as the board in its discretion may authorize, the transferee shall file with the clerk of the board its written acceptance of the license, in a form satisfactory to the county counsel, together with all required bonds and insurance certificates, and its agreement to be bound by and to comply with and to do all things required of it by the provisions of this article and the license award resolution. Such acceptance and agreement shall be acknowledged by the transferee before a notary public and shall be in a form and content satisfactory to and approved by the county counsel.

j.    The county may cancel a license 60 days or later after the appointment of a receiver or trustee to take over and conduct the business of the grantee, whether in receivership, or other action or proceeding, unless the receivership or trusteeship is vacated prior to the expiration of the 60 days, or unless:

1)    Within 60 days after his/her election or appointment, the receiver or trustee complies with this division and remedies all defaults; and

2)    Such receiver or trustee, within 60 days, executes an agreement, approved by the court, whereby the receiver or trustee assumes and agrees to be bound by this division and the license granted to grantee.

k.    A transferee shall expressly assume all obligations of grantee and expressly agree to be bound by this division and the license award resolution and is required to sign the license agreement.

l.    The provisions of subsections (i) and (k) shall not apply where the consent of the board is obtained due to any change in control or ownership of the original grantee as required under the provisions of subsection (b) of this section.

m.    Failure to comply with the requirements of this section is a material breach of this chapter, subject to the remedies provided for in this division.

Article 3    GENERAL FINANCIAL AND INSURANCE REQUIREMENTS

5.4.302 License Fee.

a.    The board shall set a license fee for each nonexclusive license granted within any licensed territory. The fee shall not exceed the maximum percent allowed by law of all the grantee’s annual gross receipts from all sources attributable to the operation of the cable system, as defined in Section 5.4.118.

b.    The initial percent required shall be established by the license award resolution. During the term of any license granted, after advance, written notification to the grantee, the board may, by resolution adopted at a regularly-scheduled meeting and effective no less than 60 days from its adoption, require the payment of a larger or greater percent of the gross annual receipts of any grantee for the remaining term of such license. In increasing the license fee applicable to existing licenses renewed pursuant to this article or otherwise subject to this article, the county shall adopt a uniform fee so that all such grantees are at all times paying the county the same percentage of gross annual receipts. Before increasing a grantee’s license fee more than 1% e.g., from 5% to 6% of gross annual receipts. within any consecutive two calendar years, the board shall hold at least one public hearing. In no event shall the maximum license fee payable by a grantee exceed 8% of gross annual receipts.

c.    The license fee shall be in addition to any other tax, fee or assessment of general applicability, including without limitation any tax, fee or assessment imposed on utilities and cable operators or their services, owed to the county by the grantee. However, gross annual receipts of a grantee shall not be subject to payment of a business license tax or fee, except to the extent such business license tax or fee exceeds the license fee paid under this article, in which case the grantee owes the excess.

d.    Once a grantee has paid a license fee to the county on certain gross annual receipts, the grantee’s distribution of all or a portion of such receipts to its affiliates, parent companies or subsidiaries shall not also be subject to payment of a license fee under this article.

e.    If a grantee gives a discount of 10% or more to any basic service only subscriber in whose name the account is held, with verifiable financial need, such as receipt of Supplemental Security Income ("SSI"), Aid to Families with Dependant Children ("AFDC"), or General Assistance, then payments received by the grantee from such subscriber may be excluded from gross annual receipts, and consequently, not be subject to a license fee.

f.    The license fee shall be payable to the county annually, semiannually or quarterly, as specified in the license award resolution. The license fee shall be paid no later than 60 days following the end of the year, half-year or quarter, as applicable, for which the payment is made. The grantee shall annually submit to the county a complete and accurate statement of all gross annual receipts. The statement shall be in a form and content acceptable to the County Administrator and shall be verified by the controller or financial officer of the company. The annual statement shall be submitted not later than 90 days following the end of each calendar or fiscal year, as applicable.

g.    The county shall have the right to inspect the grantee’s income records necessary to determine the grantee’s gross receipts in accordance with the provisions of this article and the grantee’s license award resolution and the right to audit and to re compute any amounts determined to be payable under these rules and regulations provided, however, that such audit shall commence within 48 months following the county’s receipt of the grantee’s statement of gross annual receipts, and provided further that the county shall, to the extent permitted by law, maintain the confidentiality of any trade secrets or other proprietary information in the possession of the grantee. Such income records shall be exempt from inspection pursuant to this section, however, to the extent required by applicable laws regarding subscriber privacy. Any additional amount due to the county as a result of the audit shall be paid within 30 days following written notice to the grantee by the county, which notice shall include a copy of the audit report. Should the additional amount due exceed 2% of the license fee payment which was the subject of the audit, the grantee shall also reimburse the county for all audit costs.

h.    In the event that any license fee payment or recomputed amount, cost or penalty, is not made on or before the applicable dates heretofore specified, interest shall be charged daily from such date at the annual rate of 12%. The provision of such interest for late payments does not provide the exclusive remedy for any such breach of a license and the board may also take actions as otherwise provided in this division.

i.    The grantee shall have the right to contest, by appropriate proceedings conducted in good faith, any determination by the county that additional license fees are due and owing as the result of any audit or otherwise, but the filing of such proceedings shall not delay or otherwise affect the due date specified in subsection (h) of this section.

5.4.304 Performance Bond.

a.    Within 30 days after approval of the license award resolution by the board, the grantee shall deposit with the county a performance bond issued by a company admitted to transact surety insurance business in the State of California, in a form reasonably acceptable to the county and in an amount to be specified in the license award resolution. The performance bond shall be used to insure faithful performance by the grantee of all provisions of the license and compliance with all orders, permits and directions of any agency, commission, board, department, division or office of the county having jurisdiction over its acts or defaults under this license, and the payment by the grantee of any claims, liens and taxes due the county which arise by reason of the construction, operation or performance of the system.

b.    The performance bond shall be maintained at the principal amount identified in the license award resolution during the entire term of this license, even if amounts have to be withdrawn pursuant to the provisions of this section.

c.    If the grantee fails to perform any of its obligations under this division within the notice and time to cure set forth in Section 5.4.802, the county may immediately request payment with interest from the grantee’s surety. Such payment shall be due and payable within 30 days. Upon such request for payment, the county shall notify the grantee and/or surety of the amount and date thereof. There shall be a reasonable allowance for attorney’s fees, including the county’s legal staff, and other documented costs up to the full amount of the bond.

d.    The rights reserved to the county with respect to the performance bond are in addition to all other rights of the county, whether reserved by this license or authorized by law, and no action, proceeding or exercise of a right with respect to such performance bond shall affect any other right the county may have.

e.    The performance bond shall contain the following endorsement or language equivalent in form and content and acceptable to the county: "It is hereby understood and agreed that this performance bond may not be canceled or not renewed by the surety until 30 days after receipt by the county, by registered or certified mail, of a written notice of such intention to cancel or not to renew."

f.    The county reserves the right, at any time to increase or decrease the amount of the performance bond required under this section if reasonably related to inflation, construction, subscriber base, PEG requirements, the grantee’s performance or any other factor considered relevant by the board. Such in crease or decrease shall occur no more frequently than once every 24 months, and the amount of increase or decrease during such period shall not exceed 25% or the rate of change in the CPI, whichever is greater. Within 60 days of receipt of a notice requiring increased or decreased bond coverage, the grantee shall obtain such cover age and shall furnish the revised bond with the county.

g.    The county, in its discretion, may accept a corporate surety in lieu of the performance bond required under this section. Upon acceptance, the issuer shall be responsible to the same extent as the surety under a performance bond issued pursuant to this section.

5.4.306 Construction Bond.

a.    As applicable, at least 30 days prior to commencement of any major construction affecting the cable system in the unincorporated areas of Contra Costa County, the grantee shall file with the county, a construction bond issued by a company admitted to transact surety insurance business in the State of California, in a form reasonably acceptable to the county, in such amount as is set forth in the license award resolution, in favor of the county. The construction bond shall be maintained throughout the construction period and until such time as the construction work is completed in accordance with all requirements of this article and other applicable codes, laws arid regulations, whether State, Federal or Local in origin. For purposes of this section, "major construction" shall be defined as any system rebuild or upgrade, or any other construction costing in excess of $1,000.

b.    In the event the grantee fails to complete the construction work on schedule except for causes or events beyond the grantee’s control, as defined in Section 5.4.1004, fails to perform the construction work in a workmanlike manner, or fails to comply with any other construction-related requirement of this article or the license award resolution, there shall be recoverable, jointly and severally, from the principal and surety on the bond, any damages or loss suffered by the county as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee plus a reasonable allowance for attorney’s fees, including the county’s legal staff, and other documented costs, up to the full amount of the bond.

c.    The construction bond shall contain the following endorsement or language equivalent in form and content and acceptable to the county: "It is hereby understood and agreed that this construction bond may not be canceled or not renewed by the surety until 30 days after receipt by the county, by registered or certified mail, of a written notice of such intention to cancel or not to renew."

5.4.308 Insurance.

a.    Throughout the entire term of the license, including any renewal, the grantee shall, at its own sole expense, maintain in effect the following policies of insurance:

1)    Worker’s compensation insurance as required by State Law; and

2)    Comprehensive general liability insurance, including blanket contractual or contractual liability coverage, broad form property damage coverage, and coverage for owned and non-owned automobiles, with a minimum combined single limit cover age of $1,000,000 or such greater amount as may be required in the license award resolution. for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including loss of use, arising out of each accident or occurrence, and naming the county, its boards, officers, agents and employees as additional insureds.

b.    Concurrently with the filing of an acceptance of award of any license granted under this division, the grantee shall furnish to the county and file with the Clerk of the Board certificates of insurance evidencing the required insurance coverage and requiring at least 30 days’ written notice to the county of policy lapse or cancellation or reduction in coverages required by this division.

c.    The insurance policies shall be issued by companies authorized to sell insurance in California with a current rating of "B" or better by the A.M. Best Company, and shall be in a form acceptable to the county Finance Director.

d.    The County Administrator reserves the right, at any time, to increase the amount of insurance required under this section if reasonably related to inflation or to hazards associated with the operation of a cable system. Such increase shall occur no more frequently than once every 24 months, and the amount of such increase during such period shall not exceed 25% or the rate of change in the CPI, whichever is greater. Increases shall be applicable to all grantees and occur substantially in a concurrent time frame, except in cases of increases due to hazards related to a specific grantee. Within 60 days of receipt of a notice requiring increased insurance and explaining the reason for the increase, the grantee shall obtain such increased coverage and shall furnish to the County Administrator and file with the clerk of the board amended certificates evidencing the increased coverage.

e.    In the event a policy of insurance furnished by the grantee lapses or is canceled, and the grantee fails to reinstate coverage within the notice and time to cure set forth in Section 5.4.802(a), the county reserves the right, but shall not be obligated, to purchase comparable insurance at the grantee’s expense and to recover the cost from the grantee or any bonds or other security posted by the grantee. The availability of this remedy shall not limit any other remedies available to the county.

f.    The insurance provided under this section is not conditioned or dependent on whether or not the county has approved any plans or specifications in connection with this license, or has insurance or other indemnification covering any of these matters. The insurance provided under this section shall provide primary coverage.

5.4.310 Indemnification By Grantee.

By accepting a license, the grantee agrees to defend, indemnify, save and hold harmless the county, its boards, commissions, officers and employees against any and all claims, costs and liability for any damages, injury or death arising from or connected with the grantee’s operations, due to or claimed or alleged to be due to negligent or wrongful acts, errors or omissions of the grantee, its officers, employees, contractors, agents or any person under its direction or control, save and except claims or litigation arising through the county’s sole negligence or sole willful misconduct, and will defend any such suits at the sole cost and expense of the grantee, and failing to do so, will make good to and reimburse the county for any expenditures, including reasonable attorney’s fees, the county may make by reason of such matters. The provisions of this section are in addition to, and not in lieu of, bond and insurance requirements contained in this division. Nothing in this section shall limit the liability of the companies issuing such bonds or insurance. Similarly, the furnishing of bonds and insurance, as required in this division, shall not in any way limit the grantee’s obligations under this section.

5.4.312 Indemnification By County.

a.    Notwithstanding the provisions of Section 5.4.310, the county agrees to defend, indemnify, save and hold harmless the grantee, its directors, officers, shareholders and employees against any and all claims, costs and liability for any damages, injury or death arising from or connected with the county’s use of the grantee’s cable system, due to or claimed or alleged to be due to negligent or wrongful acts, errors or omissions of the county, its officers, employees, contractors, agents or any person under its direction or control, save and except claims or litigation arising through the grantee’s sole negligence or sole willful misconduct, and will defend any such suits at the sole cost and expense of the county, and failing to do so, will make good to and reimburse the grantee for any expenditures, including reasonable attorney’s fees, the grantee may make by reason of such matters. As used in this section, the term "use" shall refer only to physical use of the grantee’s cable system, such as the cable casting of PEG programming described in Section 5.4.608, the use of the grantee’s poles and aerial structures described in Section 5.4.424 and the activation by the County of the Emergency Override System described in Section 5.4.520, but shall not include free service installed to public buildings, as described in Section 5.4.616.

b.    Nothing in Section 5.4.310 or this section is intended or shall be construed to:

1)    Impose any standard of care toward third parties greater than the standard of care normally imposed by law; or

2)    Preclude the assertion against third parties of any defense provided by statute, case law or other wise. The county shall indemnify the grantee as set forth in the interconnect and public access agreement described in Section 5.4.608.

Article 4    COUNTY REGULATION OF LICENSE

5.4.402 Administration.

The Office of the County Administrator is designated as having primary responsibility for the administration of the license and this article. Whenever a right may be exercised under this article by the county or a county officer, such right may also be exercised by a designee or employee.

5.4.404 Notices.

a.    Except as otherwise provided in this division, all notices from grantee to the county pursuant to its license shall be to the Office of the County Administrator.

b.    The grantee shall maintain with the county, throughout the term of license, an address for service of notice by mail.

c.    The grantee shall also maintain within the county a local office and telephone number for conducting matters related to its license during normal business hours.

5.4.406 Rules and Regulations.

a.    In situations where the county receives 20 or more verifiable subscriber complaints, which indicate to the county a need for revising or supplementing the customer service standards set forth in this article, the county shall have the right to amend this division by revising existing provisions or adding new provisions.

b.    The county shall first attempt to resolve the problem with the involved grantee by notifying the grantee in writing and giving the grantee an opportunity to correct the problem within 90 days of the date of the notice. If the involved grantee corrects the problem within the specified time and gives satisfactory assurances to the county that the problem will not recur, the county may treat the matter as resolved.

c.    If the involved grantee fails or refuses to correct the problem within the specified time, the county may propose amendments to the customer service standards set forth in this division. Before approving the proposed amendments, the county shall offer to meet and confer with all grantees in an attempt to reach consensus on the proposed amendments. If consensus cannot be reached, the county in its discretion shall have the right to amend the customer service standards, so long as the amended provisions are consistent with the business practices of any cable system within Contra Costa County, including incorporated areas, or are consistent with the business practices of at least one-third of the grantees licensed under this division.

d.    If this division is amended to require addition al or greater customer service standards, all grantees shall comply with the new standards no later than the effective date of such amendment or such later date as may be specified in the amendment.

e.    Notwithstanding the foregoing, the following provisions shall not be amended without the voluntary consent of the grantees:

1)    Business office location and hours of operation;

2)    Time for responding to system or individual outages;

3)    Telephone system requirements; and

4)    Credits for system or individual outages.

f.    Notwithstanding the foregoing, the county shall have the right, without following the procedure set forth in this section, to amend this division as necessary to incorporate customer service standards specified in State or Federal statute or regulation applicable to cable operators.

5.4.408 Rates and Rate Changes.

a.    Except as expressly prohibited by State or Federal statute or regulation, the county shall have the right to regulate all rates charged by the grantee to subscribers for programming, equipment, installation, disconnection, reconnection, additional outlets and other programming products or services. To implement such rate regulation, the following provisions of this section shall govern rates and rate changes under this division, except for rates and rate changes for the basic service tier and associated equipment, which shall be governed by the provisions of Section 5.4.410.

b.    Except as otherwise provided in subsection (j) of this section, before establishing or increasing any rate, fee or charge to subscribers, including any increases in items that the grantee passes through to subscribers, the grantee shall first file with the county a written request and shall obtain the county’s approval there of. The request shall include the justification for the proposed increase and shall be in such format and detail as is acceptable to the county.

c.    The board shall have access to the grantee’s financial records for the purpose of verifying all income and expenses relating to the grantee’s cable system. The documents shall include sufficient detail as may be necessary to provide the board with the information needed to make accurate determinations as to the financial condition of the system. All financial statements shall be certified as accurate by an officer of grantee.

d.    The county may require that an analysis of any proposed rate increase be conducted, at an agreed upon maximum cost to be shared equally by the grantee and county, by a professional rate consultant experienced in the analysis of cable system service rates who shall be jointly approved by both the county and the grantee. In approving rate consultants pursuant to this section, neither the county nor the grantee shall unreasonably withhold approval. The consultant shall perform an analysis of the proposed increase and forward it to the county and grantee with a report interpreting the results of the analysis and recommending actions to be taken.

e.    Within 90 days of the filing of the request for increase, the board shall hold a public hearing to consider the proposed increase, at which hearing all persons desiring to be heard, including the grantee, shall be heard on any matter, including but not limited to the grantee’s performance, the grantee’s services and the proposed increase.

f.    Upon the scheduling of any public hearing, as provided in this section, the grantee, at its sole expense, shall promptly notify its subscribers in writing of the time, place and subject matter of the initially-scheduled public hearing. In addition, the grantee, at its sole expense, shall cause notice of the public hearing to be published in a newspaper of general circulation serving the license service area, with such publication occurring not less than seven nor more than 14 days before the public hearing.

g.    Within 30 days after a public hearing, the county shall render a written decision on the grantee’s request for a proposed increase, either accepting, rejecting, modifying or deferring the same and reciting the basis of its decision.

h.    If no final decision on the grantee’s request has been rendered by the county within 120 days after the filing of the request, the grantee’s request will be deemed approved, unless the 120 day period is extended by mutual agreement of the grantee and the county.

i.    Where the license is part of a cable system under a single headend that also has licenses with one or more contiguous cities within Contra Costa County, rates for subscribers within the county shall not be higher than rates charged to any other subscriber in the system within Contra Costa County for the same service, except as specifically approved and exempted by the board. In considering a request for exemption, the board shall consider, among other things, whether this article imposes greater obligations on the grantee than the applicable City licenses.

j.    The grantee may increase any rate, fee or charge to subscribers without filing a request with the county and obtaining the county’s approval, so long as the amount of increase in such rate, fee or charge during any one calendar year does not exceed 3% or the rate of increase in the CPI, whichever is less. If the grantee increases any rate, fee or charge during any two consecutive years pursuant to this subsection, all increases in such rate, fee or charge proposed during the third consecutive year shall require the county’s approval, regardless of the amount of proposed increase. The provisions of this subsection shall apply only if the rate, fee or charge proposed to be increased has previously been subjected to rate review and approval by the board, either pursuant to Federal Communications Commission (FCC) regulations and policies or the above provisions of subsections (b) through (h).

k.    The grantee shall inform subscribers in writing of all increases in rates, fees or charges, except per-event programming, at least 30 days prior to their effective date. A copy of such notice or facsimile shall be provided to the county at the time of the subscriber notification 1. This section may be amended, from time to time, to incorporate the regulations and policies of the FCC or other State or Federal Regulatory Agency.

5.4.410 Regulation of Rates for Basic Service Tier and Associated Equipment.

a.    Authority. The Cable Television Consumer Protection and Competition Act of 1992 the Act. and the related regulations adopted by the FCC establish regulations limiting rates for basic cable television service. Local franchising agencies are authorized to enforce these regulations if the agency is certified by the FCC to enforce the regulations. The effectiveness of this section is subject to the certification of the county by the FCC or any other authority which may be conferred upon the county by the Federal government. The county adopts by reference the rate regulations established by the FCC pursuant to the Act together with any amendments which may occur from time to time. The provisions of this section are intended to implement the rate regulations established by the FCC and shall not be deemed to limit the authority of the county in any way.

b.    Initial Basic Cable Service Rates. If the county is certified by the FCC to enforce rate regulations, the County Administrator or designee shall notify each grantee of the certification. Within 30 days after receipt of the notice, the grantee shall file its schedule of existing rates for the basic service tier and associated equipment with the board together with a completed FCC Form 393 or such other form for the determination of initial rates as may be issued by the FCC or cost-of-service study as the case may be, and any other information required by the County Administrator or designee consistent with FCC rules or regulations.

c.    Rate Increases. Prior to increasing existing rates or establishing new rates for basic service and/or associated equipment at any time, the grantee shall file its proposed rates with the County Administrator or designee together with a completed FCC Form 393 or such other form for the determination of rate increases or new rates as may be issued by the FCC or the county or cost-of-service study as the case may be, and any other information required by the County Administrator or designee consistent with FCC rules or regulations.

d.    Extensions of Time for Action. The existing rates shall remain in effect and proposed rates shall take effect 30 days after submission of the forms and information specified in subsection (b) or (c) of this section, unless the board disapproves the rate or issues an order extending the 30-day period as follows. The board may issue a written order extending this 30-day period for:

1)    An additional 90 days in cases not involving cost-of-service showings if the board is unable to make a determination within the 30-day period; or

2)    An additional 150 days in cases involving cost-of-service showings.

e.    Hearings and Decision. If all required materials are not submitted, the proposed rates shall not go into effect. If all required materials are submitted, a hearing on the existing or proposed rates shall be scheduled before the board. The grantee and the general public shall be given an opportunity to be heard at the hearing. The grantee shall have the burden of proof to establish that its existing or proposed rates are within the limits established by the FCC regulations. The board shall issue a written decision if it approves over opposition or disapproves the existing or proposed rates in whole or in part. The board is not required to issue a written decision if it approves an existing or proposed rate which has not been opposed by any person or if it takes no action, in which event the proposed rate shall take effect upon expiration of the time period prescribed in subsection (d). If the board determines that the rates are unreasonable and do not comply with FCC regulations, the board may prescribe reasonable rates as authorized by FCC regulations. If the board determines that the grantee’s existing rates exceed the amounts permitted by FCC regulations, the board may order the grantee to refund the amounts overcharged to its subscribers to the extent permitted by the FCC regulations, provided that the county shall have given the grantee notice of the refund and the opportunity for comment concerning the proposed refund before any such refund is required.

f.    Refunds to Customers. Within 90 days from the board’s issuance of a rate decision or re fund order, any refunds owing by the grantee to customers shall be returned through direct payment to the customer or a specifically identified credit on the customer’s bill, or shall be implemented by means of a prospective rate reduction, as provided in 47 CFR Section 76.942d.

g.    Enforcement. If the grantee fails to comply with a rate decision or refund order made pursuant to this section, the county shall have the right to exercise any of the remedies set forth in Section 5.4.734. However, in the event that the grantee appeals a rate decision or refund order, as provided in CFR 47 Section 76.944, the collection of any liquidated damages assessed by the county shall be stayed pending the resolution of such appeal. If the rate decision or refund order is reversed on appeal, the liquidated damages shall be waived. Otherwise, the liquidated damages shall be payable for the period from the date of assessment to the date on which the grantee fully complies with the rate decision or refund order.

h.    Complaints Concerning Cable Programming Services Rates. The County Administrator or designee is authorized to file a complaint with the FCC challenging the reasonableness of a grantee’s rate for cable programming services, or for the installation or rental of equipment used for the receipt of such cable service, at any time that the County Administrator or designee determines such a complaint may be warranted.

5.4.412 Performance and Evaluation.

a.    The county and grantee may hold performance evaluation sessions at any time as directed by the board provided that no more than one performance evaluation session is held during any two-year period. The county shall send the grantee notice of the date, time and place of the performance evaluation session at least 90 days prior to the session.

b.    All evaluation sessions shall be open to the public and announced in a newspaper of general circulation serving the license area. The grantee, at its sole expense, shall notify all subscribers in the affected license area by U.S. Mail of all scheduled evaluation sessions and the specific issues proposed for discussion at least five working days prior to the first session. Such notice may be by way of a bill stuffer or similar written announcement reviewed by the county and included with subscriber statements c.    Topics which may be discussed at any evaluation session may include, but not be limited to. types and quality of service, rate structures, license fee, penalties, free or discounted services, application of new technologies, system performance, programming offered, customer complaints, privacy, amendments to this article, judicial and FCC rulings, line extension policies and grantee or county rules.

d.    Members of the general public may add topics either by working through the grantee or county or by presenting a petition. If such a petition bears the valid signatures of 5% or more of the subscribers who are residents of the license service area, the proposed topic or topics shall be added to the list of topics to be discussed at the evaluation session.

5.4.414 Disputes.

The board may do all things necessary and convenient in the exercise of its jurisdiction under this article and may determine any question of fact which may arise during the existence of any license granted hereunder. The board, on behalf of the county, may adjust, settle or compromise any controversy or cancel any charge arising from the operations of any grantee or from any provision of this article. Nothing in this section shall be construed to preclude judicial review of the board’s actions.

5.4.416 Recourse Against County.

Except as otherwise provided in this article, in the interconnect and public access agreement referred to in Section 5.4.608, or in Section 555 of Title 47 of the United States Code, the grantee shall have no monetary recourse whatsoever against the county, its officers, agents or employees in any judicial proceeding for any loss, cost, expense, or damage arising out of any provision or requirement of this article or of any license issued hereunder or because of enforcement pursuant to this article or other law or for the termination or forfeiture of any license as provided in this article. Nothing in this section shall be construed to prevent a court of competent jurisdiction from awarding declaratory or equitable relief to the grantee as part of a final order or judgment to the extent such relief is required by any provision of Federal, State or Local Law.

5.4.418 Eminent Domain.

Nothing in this article shall, in any way or to any extent, impair or affect the right of the county to acquire, at an agreed price or for fair market value, the grantee’s property either by purchase or through exercise of the right of eminent domain, and nothing herein shall be construed to contract away or to modify or abridge the county’s right of eminent domain in respect to any grantee.

5.4.420 Uses.

a.    Any license granted pursuant to the provisions of this article shall authorize and permit the grantee to engage in the business of operating and providing a cable system in the county and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along any public street, where county’s interest therein will support the grant of license, such poles, wires, cable, conductors, ducts, conduit, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the cable system; and in addition, to use, operate, and provide similar facilities or properties rented or leased from other persons, firms or corporations, including but not limited to any public utility or other grantee permitted to do business in the county.

b.    The granting of a license pursuant to this article shall not be construed as permission or license to enter on, occupy or otherwise utilize private or non-county property. Nothing in this section shall be construed to restrict any rights granted to the grantee under Federal or State law.

5.4.422 Public Use Priority.

No privilege or exemption is granted or conferred by any license granted under this article except those specifically prescribed in this article. Any privilege claimed under a license granted pursuant to this article in any street shall be subordinate to any prior lawful occupancy of the street or any subsequent occupancy of the street for public purposes.

5.4.424 Use of Grantee’s Poles.

The county shall have the right during the life of the license, on 30 days’ prior written notice to the grantee, to install and maintain, free of charge, upon the poles or similar aerial structures of the grantee any wires and pole fixtures that do not unreasonably interfere with the cable operations of the grantee, so long as any additional rearrangement or other costs are paid by the county. In case of emergency, the county shall not be required to give notice before installing its facilities.

5.4.426 Equal Opportunity Employment.

a.    The grantee shall comply with applicable Federal and State laws requiring that job applicants and employees be treated without regard to their race, religion, color, age, sex, national origin, marital status, ancestry, political or religious opinion or affiliation, and/or nondisqualifying disabilities. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship.

b.    The grantee shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the grantee’s equal employment opportunity obligations as required by applicable Federal and State Law.

5.4.428 Records, Reports and Maps.

a.    The grantee shall file the following no later than the last day in March of each year for the prior year ending December 31st:

1)    A detailed report that includes the number of homes passed and the number of subscribers;

2)    A list of current rates for all services;

3)    A current channel listing;

4)    A summary of the previous year’s activities in development of the cable system, including but not limited to services begun or discontinued during the reporting year and the number of subscribers for each class of service;

5)    A statement of projected construction, if any, for the next two years;

6)    If materially different from information then on file with the county, a current street map or set of street maps showing the area currently served under each headend and receive sites for all county licenses; and

7)    Monthly summaries of customer service telephone calls tracked pursuant to Section 5.4.716(c)(4); and

8)    Results of tests of the system required by Section 5.4.506.

b.    Upon reasonable notice, the grantee shall permit any duly authorized representative of the county to examine all property of the grantee, together with any appurtenant property of the grantee situated within or without the county, and to examine and reproduce any and all maps and other records kept or maintained by the grantee or under its control, which property, maps or records pertain to the operations, affairs or transactions of the grantee with respect to its license with the county. If any such maps or records are not kept in the county, or upon reasonable request made available in the county, and if the board shall determine that an examination thereof is necessary or appropriate, then all travel and maintenance expense necessarily incurred in making such examination shall be paid by the grantee. In so doing, the county shall, to the extent permitted by law, maintain the confidentiality of any trade secrets or other proprietary information in the possession of the grantee. To the extent required by applicable laws regarding subscriber privacy, property, maps and records shall be exempt from inspection pursuant to this section.

Article 5    OPERATIONAL, TECHNICAL AND CONSTRUCTION STANDARDS

5.4.502 Compliance With Local, State and Federal Law and Standards.

a.    Any license granted pursuant to this article is subject to all provisions, regulations and conditions prescribed by Federal, State, County and Local Law heretofore and hereafter enacted or established during the term of any license granted and shall be in addition to any electrical, encroachment or other county permit required by Title 7 or 10. As applicable, the grantee shall at all times comply with:

1)    United States Department of Transportation requirements for the construction, marking, and lighting of antenna structures;

2)    Standards of California Occupational Safety and Health Administration (Cal/OSHA), or any successor agency, installation and maintenance of all working facilities and conditions used in the cable system;

3)    Federal, State and local regulations, including without limitation FCC rules and regulations for must-carry signals, technical standards and RF leakage;

4)    Standards specified in the license award resolution and this Article, which standards are incorporated by reference in this article.

b.    For all new construction, the grantee shall comply with Division 76 of the Contra Costa County Code, as amended from time to time.

5.4.504 Operational and Maintenance Standards.

a.    The grantee shall put, keep, and maintain all parts of the system in good condition throughout the entire license period.

b.    The grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum system use.

c.    The grantee shall ensure that all work is performed in an orderly and workmanlike manner.

d.    The grantee shall not allow its cable or other operations to interfere with television reception of persons not served by the grantee, nor shall the system unreasonably interfere with, obstruct or hinder the operation of the various utilities serving the residents within the confines of Contra Costa County.

e.    The grantee shall continue, through the term of the license, to maintain the technical standards and quality of service set forth in this article and the license award resolution.

f.    The grantee shall, on the request of any person holding a building moving permit issued by the county, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and the grantee shall have the authority to require such payment in advance. The grantee shall be given not less than 15 days advance notice to arrange for such temporary wire changes.

g.    The grantee shall not remove any tree or trim any portion, either above, at or below ground level, of any tree within any public place without the prior consent of the county. Except for tree trimming or removal necessary to eliminate a safety hazard, the county shall first give written notice to the grantee and allow the grantee at least 15 days to perform the tree trimming or removal around the grantee’s facilities. If the grantee fails to perform such tree trimming or removal within such 15-day period, the county shall have the right to do the trimming at the cost of the grantee.

h.    When tree trimming or removal is necessary to eliminate a safety hazard, the county shall have the right without prior notice to do the tree trimming around the grantee’s facilities at the cost of the grantee.

5.4.506 Technical Standards.

a.    The grantee shall comply with all technical standards adopted by the FCC from time to time, as set forth in 47 CFR Section 76.605 or other applicable sections. If at any time the FCC withdraws such technical standards, the standards set forth in 47 CFR Section 76.605 or other applicable sections immediately preceding such action of withdrawal shall be the technical standards for all purposes of this article.

b.    Such technical standards shall apply only to the grantee’s cable system and shall not apply to any distribution system provided by the county for delivery of access programming, including without limitation any interconnect established for such purposes pursuant to this article.

c.    Not less frequently than semi-annually, or on such other schedule as may be established by the FCC, the grantee shall conduct a performance test or tests of the technical quality of the cable system. The tests shall be performed according to applicable FCC procedures and shall document full compliance of the system with the technical standards described in this section.

5.4.508 Construction Plan.

a.    Any construction plan submitted and approved as part of a franchising process and referred to in the license award resolution shall be binding upon the grantee.

b.    The grantee’s construction plan provided to the county in connection with the grant, renewal or expansion of the grantee’s franchise, if any, shall be made available for public inspection during normal business hours at the main local office at grantee’s expense.

c.    Prior to commencement of any construction, the grantee shall apply for all necessary permits, licenses, certificates and authorizations.

d.    Construction in accordance with the plan submitted by grantee shall commence as specified in the grantee’s license award resolution. Failure to commence, perform or complete construction in strict accordance with this section shall be grounds for revocation of a license.

e.    Nothing in this section shall prevent the grantee from constructing the system earlier than planned. However, any delay in the system construction beyond the times specified in the plan shall require application to and consent by the board. The county may not withhold consent when grantee has shown good cause for the delay, including without limitation any delay occasioned by any cause or event beyond the grantee’s control as more particularly set forth in Section 5.4.1004, but the county may attach reasonable conditions to ensure performance.

5.4.510 Construction Standards.

a.    The grantee’s system, poles, wires, and appurtenances shall be located, erected in accordance with the standards adopted by the county and approved by the county prior to commencement of work on public rights-of-way and maintained so that none of its facilities shall endanger or interfere with the lives of persons, or unreasonably interfere with any improvements the county may deem proper to make or unnecessarily hinder or obstruct the free use of the streets, alleys, bridges, easements or public property. All construction and maintenance work on public rights-of-way shall require an encroachment permit in accordance with Title 6, Chapter 2 of this code.

b.    All cables and wires shall be installed, where possible, parallel with electric and telephone lines where the cable system is installed on the same aerial facilities as such electric and telephone lines. Multiple cable configurations shall be arranged in parallel and bundled with due respect for engineering considerations.

c.    All transmission and distribution structures, lines and equipment erected by the grantee within the county shall be so located as to cause minimum interference with the proper use of streets, alleys, and other public ways and places, and to cause minimum interference with the rights or reasonable convenience of property owners who adjoin any of the said streets, alleys or other public ways and places.

d.    In case of any disturbance of pavement, side walk, driveway, public improvements or other surfacing, the grantee shall, at its own cost and expense, replace or restore all paving, sidewalk, drive way, or public improvement or surface of any street or alley disturbed, in as good condition as before said work was commenced and in accordance with standards for such work set by the county.

e.    The grantee shall ensure that the installation or construction of cable facilities does not adversely affect the safety of public or private property and is done in such a manner and location as to reasonably preserve the utility and appearance of the public and private property on which such installation or construction occurs. All work shall be performed in an orderly and workmanlike manner.

f.    No additional poles or other similar aerial structures shall be erected by the grantee in public rights-of-way without prior approval of the county with regard to location and height. However, no location of any pole or similar aerial structure of the grantee shall be a vested interest and such poles or structures shall be removed or modified by the, grantee, at its own expense, whenever the board determines that the public convenience would be enhanced thereby.

g.    Any such license granted shall not relieve the grantee of any obligation involved in obtaining pole space or other right to use facilities from any department of the county, utility company, or from others maintaining poles or other facilities. in streets.

h.    The grantee shall use existing poles or other similar existing aerial structures and will not install any additional poles, unless the county determines that terms of the use available to the grantee are unjust or unreasonable.

i.    The grantee shall, at its expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from the street or other public place, any property of the grantee when required by the county by reason of traffic conditions, public safety, street vacation, freeway or street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines and tracks or any other type of structure or improvements by public agencies; provided, however, that grantee shall in all such cases have the privileges and be subject to the obligations to abandon any property of the grantee as provided in this article.

j.    The county shall notify the grantee that its facilities may have to be protected, supported, temporarily disconnected, relocated, or removed as soon as the project enters into a design stage or as soon as maintenance work is contemplated. The county shall coordinate with the grantee on the project design to minimize impacts to the grantee and to provide grantee with the up-to-date drawings for the grantee’s use. Grantee shall protect, support, temporarily disconnect, relocate to a new location, or remove its facility that is in conflict with the county’s planned work within six weeks of the county’s notice to relocate. Grantee shall bear all costs including right-of-way delay cost resulting from the grantee’s failure to protect, support, temporarily disconnect, relocate or remove its facility that is in conflict with the work.

5.4.512 Undergrounding of Cable.

a.    Underground cables shall be installed at the grantee’s cost where all existing utilities, excluding high voltage transmission lines, are already underground.

b.    In cases of new construction or property development where utilities, except high voltage transmission lines, are to be placed underground, the grantee shall install all cable underground.

c.    In cases where existing aerial utilities are required, pursuant to Public Utilities Commission (PUC) Rule 20a, Rule 32a or any successor rules, to be relocated underground, the grantee shall, at its sole expense, relocate all existing underground in conjunction with the utility undergrounding.

d.    In cases where existing aerial utilities are required, pursuant to Planning Utilities Commission Rule 20b, Rule 32b. or any successor rules, to be relocated underground, the grantee shall relocate all existing aerial cable underground in conjunction with the utility under-grounding, and the grantee shall receive payment from the county for its cable undergrounding on the same terms and conditions as the affected utilities.

e.    The requirement that all cable be installed underground shall not apply to amplifiers, bridges, line extenders, stand-by power supplies, taps or optical equipment, which may be installed on the ground surface in housings or pedestals at a location at least five feet from the face of curb or edge of pavement or at least one foot from the outside edge of sidewalk, whichever distance is the furthest away from the road.

5.4.514 Underground Procedures for New Developments.

a.    In the absence of an agreement to the contrary between grantee and any involved developer or property owner, the provisions of this section shall govern. In cases of new construction or property development where utilities are to be placed underground, the developer, property owner or joint trench coordinator shall give the grantee reasonable notice of such construction or development, and of the particular date on which open trenching should be available for the grantee’s installation of its conduit, pedestals and/or vaults, and laterals to be provided at the grantee’ s expense. The grantee shall also provide at its expense specifications to the developer, property owner or joint trench coordinator as needed for trenching.

b.    Except as provided in this section, 50% of the costs of common joint. trenching shall be borne by the grantee and 50% by the developer or property owner but both shares are to be exclusive of any portion of the trenching costs to be borne by any public utility or other party. If the grantee fails to install its conduit, pedestals and/or vaults, and laterals within two working days after notification by the joint trench coordinator or other party controlling the trenching that the trenches are available, and if the trenches are closed after the two-day period, the cost of new trenching is to be borne by the grantee.

5.4.516 System Upgrades and Rebuilds.

Except as specifically exempted by the board, should the grantee upgrade, rebuild or otherwise improve the system or services in any license area within the county contiguous to and served by the same headend as the area covered by the county license, such upgrades or improvements shall also be made concurrently or sequentially in the county licensed area, provided that the grantee is permitted to adjust rates as necessary to recover the reasonable, proportionate capital cost of such work, including a return on investment comparable to that allowed by the contiguous jurisdiction, but in no event less than that specified by the FCC in cost of service showings applicable to the regulated rates of cable operators.

5.4.518 System Interconnection.

The grantee shall interconnect its system with other cable systems and transmission/reception facilities operated by other grantees or the county as set forth in that certain Agreement for the Delivery of Access Programming in Contra Costa County dated July 20, 1993 by and between the county, on the one hand, and the cable operators identified therein, on the other.

5.4.520 Emergency Override.

To provide an emergency alert capability, the grantee shall install and maintain equipment which allows the county to simultaneously override audio signals and broadcast emergency messages on all television channels. In case of public emergency, the county may, as directed by the administrator of emergency services or other authorized official, activate and use such emergency override system for the duration of the emergency. City-licensed areas shall be subject to a county override only to the extent authorized by agreements between the county and cities or authorized by State Law. The grantee shall assist and cooperate with the county in periodic testing of the emergency override system.

5.4.522 Removal and Abandonment.

a.    In the event that the use of any material part or the cable system is discontinued for any reason for a continuous period of twelve months, or the license for such system has been terminated, forfeited, revoked, canceled or has expired without extension or renewal, the grantee shall promptly, upon being given notice, in the same manner as provided in Section 5.4.806, remove from the streets or public places all such property and poles of such system other than any which the county may permit to be abandoned in place. The county may extend such time not to exceed an additional 120 days. In the event of such removal, the grantee shall promptly restore the street or other area from which such property has been removed to such condition as existed immediately prior to removal and otherwise in compliance with all applicable laws and regulations, whether Local, State or Federal.

b.    Any property of the grantee remaining in place six months, or such a longer period of time approved by the board, after the termination, forfeiture, revocation, cancellation or expiration of the license without extension or renewal shall be considered permanently abandoned.

c.    Any property of the grantee to be abandoned in place shall be abandoned in such a manner as the county shall prescribe. Upon permanent abandonment of the property of the grantee in place, the property shall become that of the county and the grantee shall submit to the county an instrument in writing, to be approved by the county counsel, indicating county ownership of such property.

5.4.524 Unauthorized Connections and Tampering.

No person, firm or corporation shall make any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a licensed cable system within the unincorporated area of this county for the purpose of taking or receiving television signals, radio signals, pictures, programs, or sound. Also no person, without the consent of the owner, shall tamper with, remove or injure any cables, wires or equipment used for distribution of television signals, radio signals, pictures, programs or sound.

Article 6    GENERAL SERVICE PROVISIONS

5.4.602 Cable Programming.

The cable programming offered by the grantee shall include at a minimum each of the following categories as is appropriate to the license area: community, family, children’s, news and public affairs, sports, cultural, religious, arts and music, minority or foreign language, and educational for all ages.

5.4.604 Basic Service.

Basic service shall be available to all subscribers. No subscriber shall be required to purchase any other service as a prerequisite to purchasing basic service. Basic service shall include all PEG channels at no extra charge.

5.4.606 Required Channel Capacity.

a.    The cable system shall have a minimum channel capacity of 30-six activated channels. If the service area of the county license is part of a cable system under a single headend that also has licenses with one or more contiguous cities within Contra Costa County, and if the City licenses require a greater channel capacity, then the highest City standard shall be considered the county standard, provided that the grantee is permitted to adjust rates as necessary to recover the reasonable, proportionate capital cost of providing such additional channel capacity, including a return on investment comparable to that allowed by the contiguous jurisdiction, but in no event less than that specified by the FCC in cost of service showings applicable to the regulated rates of cable operators.

b.    Such system shall maintain a plant which, with appropriate modifications, has the technical capability for data/video return or "two-way" communication "Capability" shall not mean that such two-way communication is made operational. Whether and under what circumstances such two-way communication is made operational will be set out in the grantee’s license award resolution.

c.    In cases where the grantee’s existing cable system does not meet the requirements of this section, the license award resolution shall specify the time within which the grantee’s cable system must comply.

5.4.608 PEG Channels.

The grantee shall make available one or more dedicated channel on its cable system for purposes of PEG programming to be cablecast by the county, as set forth in the Access Agreement.

5.4.610 PEG Facilities.

Except as limited by the Access Agreement the grantee shall provide such additional PEG services, facilities and equipment as are specified in the license award resolution.

5.4.612 Subscriber Access to PEG Channels.

PEG channels shall be part of basic cable service. All subscribers within the unincorporated and incorporated areas of the county served by a grantee shall receive all PEG channels that the grantee provides to the county under this division.

5.4.614 Public Access Usage Management.

The county agrees not to lease, transfer, or divest itself of control of the use of a PEG channel for commercial purposes. Nothing in this section shall prevent the county from delegating to an independent nonprofit entity such as a commission, board, or nonprofit corporation the authority to manage all or any part of the county’s PEG facilities, programming and/or funds. The commission, board, or nonprofit corporation shall be subject to the provisions of the Access Agreement, and may be established jointly with neighboring jurisdictions at county’s sole option.

5.4.616 Free Service to County Facilities.

a.    The county, in its sole discretion, may determine that it is desirable for certain public buildings within the county to receive one primary outlet and basic service to that outlet without charge to the county. Public buildings shall include but not be limited to:

1)    Public schools and community colleges;

2)    Fire stations, Police Chief’s stations and police stations;

3)    Jail and detention facilities; and

4)    Other buildings owned or occupied by the county or other public entity governed by the board.

b.    Public buildings shall not include buildings owned or occupied by private companies or organizations under contract with the county.

c.    If the county makes such a determination, the grantee who serves the cabled area in which the designated public building is located shall, without cost to the county but subject to the distance limitations of this section, install one primary outlet and provide basic service to that outlet.

d.    Free installation to existing buildings shall be subject to the following distance limitations as measured from the nearest active coaxial feeder line along a reasonably direct route.

1)    150 feet for aerial service drops; or

2)    75 feet for underground service drops.

e.    Free installation to new buildings shall be subject to the following distance limitations as measured from the nearest active coaxial feeder line along a reasonably direct route.

1)    150 feet for aerial service drops; or

2)    150 feet for underground service drops, provided such drops can be installed in utility trenches concurrently with the construction of such new buildings and do not require cutting, boring or similar work. If cutting, boring or similar work is required, the cable operators shall install the first 75 feet at no cost to the county. The remaining distance will be paid for by the county at the actual cost of the operators.

f.    That portion of primary outlet installation which exceeds the foregoing distance limitations, and additional outlet installation to any such building, if requested by the county, shall be provided by the grantee and paid for by the county on an actual time and materials basis.

g.    The grantee shall not charge the county or other public entity for any basic service provided under the provisions of this section, nor shall the grantee be responsible for securing any easements necessary to provide this service.

Article 7    CUSTOMER SERVICE

5.4.702 Continuity of Service.

Customers have the right to receive, and the grantee has the obligation to provide, efficient service, prompt repairs and service interrupted only for good cause and for the shortest possible time. It shall be the right of all subscribers to continue receiving service insofar as their financial and other obligations to the grantee are honored. In the event that the grantee elects to overbuild, rebuild, modify, or sell the system, or the board gives notice of intent to terminate or fails to renew this license, the grantee shall act so as to ensure that all subscribers receive continuous, uninterrupted service, subject to the provisions of Section 5.4.710 and Section 5.4.714.

5.4.704 Nondiscriminatory Services.

The grantee shall not deny service or access or otherwise discriminate against subscribers, channel users or general citizens on the basis of race, color, religion, national origin, sex, age or occupation. Nothing in this section shall be deemed to prohibit the discounts permitted in Section 5.4.302e.

5.4.706 Business Office.

Except as provided otherwise in the license award resolution, all grantees shall maintain a business office within the county open for at least eight hours per day during weekdays, excluding those holidays observed by the grantee.

5.4.708 New Service Requests.

a.    Except for delays beyond the grantee’s control, the grantee shall provide service pursuant to the following requirements.

b.    Within 15 working days, the grantee must make cable service available to any resident requesting connection at the standard connection charge, if no new drop is required or if connection to the resident would require a new aerial drop of 150 feet or less or a new underground drop by 75 feet or less, as measured from the nearest active coaxial feeder line along a reasonably direct route. Upon receiving a request for new service pursuant to this subsection, the grantee shall make reasonable efforts to promptly acquire all easements or rights of occupancy necessary for extension of service to such resident’s home and not already secured by the grantee, but the grantee shall not be required to install service until such easements or rights of occupancy have been acquired.

c.    The grantee must extend and make cable television service available to every dwelling unit within three months in any unserved area reaching the average density of 10 occupied residential dwelling units per one-quarter mile, as measured from the nearest active coaxial feeder line. Multiple dwelling units that are not served by the grantee or that are served as one unit under a bulk discount rate shall be counted as one occupied unit for purposes of this subsection. Extension of cable television service to any unserved area satisfying the foregoing requirements will be subject to the following:

1)    Each occupied residential dwelling unit must be located within a distance of no more than 150 feet from the anticipated location of such extension, provided that an occupied residential dwelling unit located more than this distance from the anticipated location of such extension shall be counted if the owner or occupant agrees to reimburse the grantee for the cost of the portion of the drop to such residential dwelling unit exceeding 150 feet; and

2)    The grantee is able to secure all necessary easements or rights-of-way for purposes of locating its cable system in the area of such extension.

d.    In areas not meeting the requirements for mandatory extension of service, the grantee shall provide, upon the request of a potential subscriber desiring service, an estimate of the reasonable costs required to extend service to said subscriber, including materials, labor, overhead and private easements, if necessary. The grantee shall then extend service within four months upon request of said potential subscriber, who shall be responsible for all reasonable costs associated with the extension. The grantee may require advance payment or assurance of payment satisfactory to the grantee.

5.4.710 System or Individual Outage Complaints.

a.    Upon receipt of a service complaint during hours the business office is open, the grantee shall respond as follows:

1)    To a system outage of one or more channels, within four hours;

2)    To an individual outage of one or more channels, within 24 hours;

3)    To all other reception problems, by the next working day or as agreed upon by the subscriber and the grantee.

b.    The grantee will be deemed to have responded to a service complaint when a field service representative competent to fix the problem arrives at the service location which may be some portion of the cable system and not a subscriber’s residence. and begins work on the problem. In the case of a response which involves request for service at a subscriber’s residence, and the subscriber is not home when the field service representative arrives, response will be deemed to have taken place if the field service representative leaves notification of arrival.

c.    Where the grantee is unable to respond to a service complaint within the applicable time period specified in this section, the grantee shall make reasonable efforts, within such time period, to notify the complainant of the reasons and the estimated timeframe for correction, and shall proceed to correct the service complaint at the earliest possible time.

5.4.712 Scheduling Service Calls.

Service calls shall be scheduled within the deadlines set forth in Section 5.4.710. At the subscriber’s option, weekday service calls shall be scheduled as morning or afternoon appointments, unless otherwise specified in the license award resolution. For service calls responding to system or individual outages, holiday and weekend scheduling shall also be available. Appointments shall be scheduled within a time window of no more than four hours, unless the subscriber voluntarily consents to a longer period. If the appointment cannot be kept, the grantee shall make reasonable efforts to promptly notify the subscriber in advance.

5.4.714 Notification of Service Interruptions.

Where service interruptions of one hour duration or longer are planned, the grantee shall notify subscribers at least 24 hours before the anticipated interruption, provided that no notification shall be required for service interruptions occurring between two am. and six am. Notification need not be repeated before each anticipated interruption as long as the initial notification advises of the possibility of repeated interruptions during a specified period not to exceed one month. To the extent feasible, the grantee shall avoid interruptions between five p.m. and midnight

5.4.716 Telephone Communication Services.

a.    The grantee shall render efficient telephone communication service, sufficiently staffed by knowledgeable, courteous personnel.

b.    Customer Service Response. At a minimum, the grantee shall have on duty a sufficient number of customer service representatives available to handle customer calls during all hours that the business office is open. During times not handled by customer service representatives, each system must have a capable answering service for repair requests or service complaints. Answering machines are not acceptable, except for automated response units that are used to process and route calls to on-duty personnel of the grantee.

c.    Telephone System Requirements. The grantee shall at all times provide a telephone system meeting the following requirements:

1)    Each grantee shall have a phone system with a sufficient capacity to promptly respond to telephone calls. Telephone numbers for customer service shall be listed in a local telephone directory. All telephone lines for customer service shall be toll free to subscribers within the license area;

2)    Knowledgeable, qualified customer service representatives shall be available to respond to customer telephone inquiries Monday through Friday during normal business hours. Additionally, the grantee shall staff telephones for such supplemental hours on weekdays and weekends as are specified in the license award resolution;

3)    Under normal operating conditions, telephone answer time by a customer service representative, including wait time, and the time required to transfer the call, shall not exceed 30 seconds. Those systems which utilize automated answering and distributing equipment shall limit the number of routine rings to four or fewer. Systems not utilizing automated equipment shall make every effort to answer incoming calls as promptly as the automated systems. Under normal operating conditions, the customer shall receive a busy signal less than 3% of the total time that the telephone system is staffed by customer service representatives. These standards shall be met no less than 80% of the time measured quarterly. If the county receives complaints indicating a significant problem in any telephone system, the county may require the grantee to meet the above standards not less than 80% of the time measured over a 60 day period until such time as the performance is perceived to be satisfactory;

4)    The grantee shall, by means of automatic monitoring equipment, track all customer service telephone calls and prepare monthly summaries of all calls according to the criteria listed in subsection (3) of this section. Such report shall be delivered to the county as required in Section 5.4.428 and, in addition, as requested. Where the grantee serves two or more communities in the county from a common headend and/or provides cable service to two or more communities in the county through common administrative and operational facilities, reports with respect to the requirements set forth in subsection (3) may be provided for all communities served by the grantee and need not be provided on a separate basis for the unincorporated area of the county served by the grantee. In the event the grantee elects to provide combined reports, as allowed by this subsection, any deficiencies reflected therein shall be subject to the provisions of subsection (3) of this section;

5)    In cases of outages or major service interruptions beyond the grantee’s control, the telephone system requirements described in subsection (3) of this section shall not apply. However, there shall be a recording informing customers of the problem and probable correction time;

6)    In cases where the grantee’s existing telephone system cannot demonstrate compliance with the standards set forth in subsections (3) or (4) of this section, the license award resolution may specify comparable criteria for the grantee’s telephone system and the time frame for compliance with the standards set forth in this section.

5.4.718 Service Availability and Record Request.

The grantee shall keep a computer log or written record for at least three years of all service calls and complaints which require the dispatch of a service vehicle to respond to the service call or complaint, as described in Section 5.4.708 and Section 5.4.710, received by the grantee, together with the disposition of such calls. This record shall be available for public inspection by the affected subscriber at the local office of the grantee during regular office hours such that each subscriber may examine his or her own records. Before making a record available for inspection under this section, the grantee may require reasonable advance notice, which shall in no event exceed one working day.

5.4.720 Subscriber Test Requests.

Upon reasonable request or complaint by a subscriber, the grantee shall, at its sole expense, perform such signal level tests as necessary to establish if a signal of requisite quality is being delivered to the subscriber’s premises. The test shall be conducted at the subscriber’s receiver and at other such locations deemed necessary by the grantee, and a copy of the written test results shall be made available to the subscriber upon request.

5.4.722 Subscriber Survey.

a.    Not less than once every two years, the grantee, at its sole expense, shall conduct a survey or surveys of all subscribers in the grantee’s service area to determine:

1)    Preferences for programming currently offered by the grantee, as well as programming available nationally or regionally but not currently offered by the grantee;

2)    Satisfaction with customer service, including without limitation response to customer complaints; and

3)    Satisfaction with the technical capabilities of the system. The survey methodology and format shall be submitted to the County Administrator for review and comment prior to distribution to the grantee’s subscribers. In addition, not more than six months prior to submitting an application for license renewal, license transfer or for extension of license term, the grantee shall conduct a survey in accordance with this section.

b.    A copy of the survey results shall be sent by the grantee to the County Administrator, together with any programming or other changes resulting from the survey.

5.4.724 Conditions of Service – Subscriber Information.

The grantee shall send or deliver to all new and reconnected subscribers in writing, in a form easy to read and understand, information concerning the conditions of service, including but not limited to: rates, fees, charges, deposits, refunds of deposits, available levels of service tiers, payment options, discounts if any, service call policy, privacy protections and disconnection and reconnection policy. The grantee shall provide a copy of such information to the County Administrator prior to its distribution to the grantee’s subscribers for review and comment.

5.4.726 Complaints – Subscriber Information.

Upon connection or reconnection to the system and at least once a year, the grantee shall, by appropriate means, such as a card or brochure, printed notice on billing statement or billing insert, furnish to each subscriber information concerning the procedures for making inquiries or complaints to the grantee or the county, including the name, address and local telephone number of the grantee and the County Administrator. The form and content of the complaint notice shall be subject to review and comment by the County Administrator.

5.4.728 Investigation of Complaints.

a.    When there have been a significant number of complaints made, or where there exists other evidence which, in the judgment of the county, indicates a problem with the reliability or quality of cable service as required under this division or in the license award resolution, the board shall have the right and authority to require the grantee to evaluate the performance, operation or administration of the cable system including without limitation matters to customer service. The grantee shall fully cooperate with the county in performing such evaluation and shall prepare results and a report, if requested, within 30 days after notice. Such report shall include the following information:

1)    The nature of the complaint or problem which precipitated the evaluation;

2)    What system component, operation or service was evaluated;

3)    The equipment used and procedures employed;

4)    The method, if any, by which such complaint or problem could be or has been resolved; and

5)    Any other information pertinent to the evaluation which may be required.

b.    The county may require that evaluations be supervised, or conducted, at an agreed upon maximum cost to be shared equally by the grantee and county, by an engineer, accountant or other consultant selected by the county and not on the permanent staff of the grantee or the county. The engineer, accountant or other consultant shall sign all records of the evaluation and forward to the county such records with a report interpreting the results of the evaluation and recommending actions to be taken. The county’s rights under this section, shall be limited to evaluating specific subjects and characteristics based on complaints, circumstances or other evidence which cause the county to believe that evaluation is necessary to protect the public against substandard cable service.

c.    The county shall maintain a list of qualified engineers, accountants and other consultants mutually acceptable to the county and the grantee. The list shall be updated every three years or as otherwise agreed by the county and the grantee. The county shall select a consultant from such list to supervise or conduct the evaluations described in subsection (b). Before retaining a consultant to supervise or conduct evaluations, the county shall first notify the grantee in writing and give the grantee a reasonable period of time within which to cure the problem. If an investigation involves a complaint or problem for which the list does not provide a qualified consultant, the county shall select a qualified consultant mutually acceptable to the county and the grantee. In approving consultants pursuant to this section, neither the county nor the grantee shall unreasonably withhold approval.

5.4.730 Billing, Late Fees, Disconnection of Service and Notification of Rate Changes.

a.    Bills for service shall be monthly. Nothing in this section shall prohibit voluntary prepayment of service; by subscribers, provided that the grantee shall not be required to offer or accept any discount or other reduction in the amount paid by any subscribe for a voluntary prepayment of services.

b.    Before itemizing on subscriber bills any fees, taxes, assessments or other items payable to the county the itemization of which is not expressly authorized by State or Federal statute or regulation, the grantee shall submit a sample bill to the county for review and comment. In the event that the billing language proposed by the grantee is misleading or incomplete, the grantee shall modify the same as requested by the county or shall include a reason able explanation as agreed to by the county and the grantee.

c.    Charges on a bill shall not be deemed delinquent and a subscriber shall not be subject to a late fee, so long as payment is received from the subscriber within 10 days after the end of the service period covered by the bill.

d.    Before disconnecting a subscriber’s service for nonpayment, the grantee shall, by Cablegram, T-gram, mailgram, telegram or other means approved in advance by the County Administrator, give the subscriber at least five days’ written notice of intention to disconnect. The notice shall specify a deadline for payment to avoid disconnection, which deadline shall be at least five days after the delinquency date described in subsection (c) of this section. Provided the grantee has given such notice to the subscriber, if payment for the delinquent charges and any applicable late fee is not received by the deadline, or if the subscriber’s payment is dishonored by the bank, the grantee may disconnect the subscriber’s service without further notice.

5.4.732 Credits for Outages.

a.    Except for loss of service beyond the reasonable control of the grantee, after notification from a subscriber of an individual or system outage and following the timeframes set out in this chapter for an opportunity to cure, the grantee shall, upon request, credit the subscriber’s account on a pro-rata basis one-thirtieth of the subscriber’s monthly rate for each day or portion of a day that the system or individual outage continues. In addition, in cases where, within any seven-day period, there have been more than six individual outages, system outages or service interruptions of 15 minutes or more, the grantee shall, upon request, credit the subscriber’s account for one-thirtieth of the subscriber’s monthly rate. Should an individual or system outage affect a pay-per-view or other similarly priced per-event service, the subscriber shall, upon request, be credited the charges for such service. Credit shall be given under this section only if the subscriber has notified the grantee of the outage within 24 hours of its occurrence and has provided access to the grantee as necessary to correct the problem.

b.    Nothing in this section shall prohibit the grantee from giving other credits.

5.4.734 Refund of Deposits.

The grantee shall refund all subscriber deposits within 30 days of termination of service. Any outstanding balance, including any equipment not returned by the subscriber, may be deducted from the deposit. The refund shall be mailed to the subscriber at no expense, or shall be handled as otherwise agreed to by the subscriber.

5.4.736 Parental Control Lock.

The grantee shall provide subscribers, upon request, with a parental locking device or digital code that permits inhibiting the video portions of premium channels. The grantee may charge a reasonable rate for such a device.

5.4.738 Privacy.

a.    The grantee shall not sell or otherwise release to any person, without specific written authorization from each individual subscriber, any list which identifies individual subscriber viewing habits.

b.    The grantee shall not place in a residence any equipment capable of being used by the grantee for audio eavesdropping or video surveillance. In addition, the grantee shall not activate any two-way communications capability of the system in a subscriber’s residence, or use the system to gather information about individual subscriber viewing habits, without the subscriber’s informed written or electronic consent. Notwithstanding the above, the grantee shall have the right to use the system to:

1)    Obtain information necessary to render cable service or any other service provided by the grantee to the subscriber;

2)    Verify receipt of cable service for billing purposes; or

3)    Detect unauthorized reception.

5.4.740 Landlord/Tenant.

a.    Neither the owner of any residential dwelling nor his/her agent or representative shall ask or demand any payment, service or gratuity in any form as a condition for permitting the installation of cable service to the dwelling unit occupied by a tenant or resident requesting service.

b.    Neither the owner of any residential dwelling nor his/her agent or representative shall penalize, charge or surcharge a tenant or resident or forfeit or threat en to forfeit any right of such tenant or resident, or discriminate in any way against such tenant or resident who requests or receives cable service from a grantee operating under a valid and existing cable license issued by the county.

c.    No person shall resell, without the express written consent of the grantee and without a license from the county, where required, any cable service, program or signal transmitted by a grantee operating under a license issued by the county. However, the owner of a multiple dwelling unit, under the auspices of a bulk cable service agreement with the grantee, may charge tenants for cable service, so long as such charges do not exceed the charges made by the grantee to the owner, plus a reasonable sum to reimburse the owner for necessary administration and billing.

d.    Nothing in this section shall prohibit a person from requiring that cable system facilities conform to laws and regulations and reasonable conditions necessary to protect safety, functioning, appearance and value of premises or the convenience and safety of persons or property.

e.    Nothing in this section shall prohibit a person from requiring a grantee to agree to identify the owner, or his/her agents or representatives, for damages or from liability for damages caused by the installation, operation, maintenance or removal of cable system facilities.

Article 8    VIOLATIONS

5.4.802 License Violations and Penalties.

a.    In the event the grantee fails to comply with any provision of this article or the license award resolution, the county may notify the grantee in writing of the violation. The written notice shall specify a reasonable time period for correcting the violation, which period shall be no less than the following:

1)    Two working days for violations involving insurance or bond requirements;

2)    Five working days for violations involving the payment of license fees or other monetary obligations;

3)    Twenty working days for all other violations.

b.    If the grantee fails to correct the violation within the time specified in the written notice, the county may at its option:

1)    Assess liquidated damages against the grantee as provided in subsection (c) of this section;

2)    Remedy the violation and recover the actual costs of such performance from the grantee as provided in subsection (d); or

3)    Revoke or terminate the license as provided in Section 5.4.804.

c.    Before assessing liquidated damages, the county shall first send a second written notice to the grantee. The second notice shall specify the date on which the assessment of liquidated damages will begin, which date shall in no event be sooner than the end of the period to cure specified in subsection (a). Liquidated damages assessed against the grantee shall be due and payable to the county no later than one week after the date of assessment. The following amounts may be assessed as liquidated damages:

1)    For failure to provide data, documents, re ports, bonds, insurance or information as required or requested under this article by county, the grantee shall pay $50 per day for each day or part thereof that such violation continues.

2)    For failure to meet system construction commitments in the license award resolution without prior written authorization from the county, the grantee shall pay $100 per day for each day or part thereof that such violation continues.

3)    For failure to test, analyze and report on the performance of the system following a request, the grantee shall pay $50 per day for each day or part thereof that such violation continues.

4)    For failure to comply with the technical and operational standards of Title 5 Chapter 4 Article 5 of this Code, the grantee shall pay $200 per day or part thereof that such violation continues.

5)    For failure to commence, pursue, or complete any work required by law or by the provisions of this article or by its license to be done in any street or other public place, within the time pre scribed, and to the satisfaction of the county, the grantee shall pay $100 per day for each day or part thereof that such violation continues.

6)    For failure to comply with general service provisions, public, educational, governmental access channel provisions or customer service provisions, the grantee shall pay $100 per day or part thereof that such violation continues.

7)    For failure to comply with a rate decision or refund order made pursuant to Section 5.4.410, the grantee shall pay $100 per day or part thereof that such violation continues.

d.    If the county elects to assess liquidated damages against the grantee following notice and opportunity to cure in accordance with the provisions of this section, such remedy shall constitute the sole monetary remedy available to the county and the grantee shall be liable for no other monetary damages arising from such violation.

e.    Before remedying a violation and recovering the actual costs of such performance from the grantee, the county shall first send a second written notice to the grantee. The second notice shall specify the date on which the county may remedy the violation and incur costs. Actual costs incurred by the county in remedying violations of the grantee shall be due and payable to the county no later than one week after the date of billing.

5.4.804 Revocation or Termination.

a.    The county reserves the right to revoke or terminate any license granted hereunder and rescind all rights and privileges associated with the license in the following circumstances, each of which shall represent a default under this Article and a material breach of the license award resolution:

1)    If the grantee shall violate or default in the performance of any of its material obligations under this division, the license award resolution or such other documents, agreements, terms or provisions entered into by and between the county and the grantee, and such violation or default is not corrected following demand and opportunity to cure as provided in subsection (b) of this section.

2)    If the grantee should fail to provide or maintain in full force and effect, the liability and indemnification coverages or the bonds as required by this article or the license award resolution.

3)    If there is an outage of the cable system or significant portion thereof for a continuous period of seven days or more for any reason within the control of the grantee.

4)    If the grantee practices any fraud or deceit upon the county.

5)    If the grantee becomes insolvent.

b.    Except for defaults involving bonds or insurance or system outages, the county shall make writ 10 demand that the grantee comply with any such requirement, limitation, term, condition, rule or regulation or correct any action deemed cause for revocation within 30 days after the grantee receives such written demand. If the failure, refusal, or neglect of the grantee continues for a period exceeding 30 days following the grantee’s receipt of such written demand from the county, the county may place its request for termination of the license upon a regular board meeting agenda. The county shall mail to such grantee, at least 20 days prior to the date of such meeting, a written notice of the intent to request such termination, and the time and place of the meeting, notice of which shall be published at least once no later than 10 days before such meeting, in a newspaper of general circulation within the license area.

c.    The board may hear any persons interested therein, and the grantee shall be afforded fair opportunity for full participation, including the right to introduce evidence, to require the production of evidence, to be represented by counsel and to question witnesses. The board shall determine, within 90 days of the close of the hearing, based upon the preponderance of the evidence, whether the grantee has committed a material breach of this article or the license award resolution. The decision of the board shall be in writing and based upon the record before it. The board may appoint a fact-finder to conduct hearings and to submit findings and recommendations to the board on the issues.

d.    If the county determines that the grantee has committed a material breach, then the county may, by resolution, declare that the license of such grantee shall be terminated and bonds and any security fund forfeited.

e.    Except as provided in Section 5.4.522 for abandoned property, should the county purchase or take over the cable system upon revocation, the valuation of the cable system shall be at fair market value, with no value assigned to the license itself.

f.    In the case of defaults involving failure to provide or maintain in effect any of the bonds or insurance required by this article or the license award resolution, the county may make written demand that the grantee comply with such requirements and remove the default within five business days of the demand. Should the grantee fail to provide or reinstate the required bonds or insurance within that time, the license shall immediately terminate, without further notice from or action by the county.

g.    In the case of defaults involving outage of the cable system or a significant portion thereof, which outage has continued for seven days or more and which outage is within the grantee’s control, then the board may make written demand that the grantee remedy the outage within five business days of the demand or such longer period of time as the board, in its discretion, may allow. Should the grantee fail to remedy the outage within the applicable time period, the license shall immediately terminate, without further notice from or action by the county.

5.4.806 Procedures in the Event of Termination or Expiration.

a.    In the event a license expires without the sale or transfer to a cable operator who is granted a successive license from the county, is revoked, or otherwise terminated, the county may order the removal of the above-ground system facilities from the license area within such time period as specified in Section 5.4.522.

b.    Restoration of Property. When removing its plant, structures, and equipment, the grantee shall fill, at its own expense, any excavation that shall be made by it and shall leave all public ways and places in as good condition as that prevailing prior to the grantee’s removal of its equipment without affecting the electrical or telephone cables, wires, or attachments. The liability, indemnity and insurance shall continue in full force and effect during the period of removal until full compliance by the grantee with the terms and conditions of this article.

c.    Restoration by County – Reimbursement of Costs. In the event of a failure by the grantee to complete any work required by subsection (a) and/or subsection (b) of this section, or any work required by county by law or division, within 90 days after receipt of written notice, and to the satisfaction of the county, the county may cause such work to be done and the grantee shall reimburse the county the cost thereof within 30 days after receipt of an itemized list of such costs. The county shall be permitted to seek legal and equitable relief to enforce the provisions of this article.

d.    County’s Rights Not Affected. The termination and forfeiture of any license shall in no way affect any of the rights of the county under any provision of law.

5.4.808 Remedies Available to County.

In dealing with violations of this division or the license award resolution, the county shall not be limited to the remedies specified in this chapter, but instead shall have available all remedies provided by law or equity. In addition, the use by the county of any remedy specified in this chapter shall not prejudice or affect any other remedy available to the county, except as provided otherwise in Section 5.4.802(d). No notice or opportunity to cure provided for in this division shall affect the accrual of interest on license fees or other financial obligations of the grantee, which shall accrue interest from the payment due date at the rate specified in this division or the legal rate, whichever is greater.

Article 9    OTHER JURISDICTIONS

5.4.902 Annexations and Incorporations.

Whenever any portion of the territory covered by this license shall be annexed to, or otherwise become a part of any municipal corporation or of any other county, the county’s rights and duties hereunder shall inure to the benefit of, and be enforced by such other public body and its appropriate officers.

5.4.904 Joint Exercise of Powers Agreement.

Should a joint exercise of powers agreement pursuant to Government Code §6500, et seq., be entered between the county and a city or cities located therein in accordance with law providing for the joint regulation of cable grantees and cable services, involved grantees shall be governed by, and subject to that agreement, pursuant to this division’s provisions, provided that no such joint powers agreement shall impair any right or obligation of the grantee under this division or its license award resolution.

Article 10    MISCELLANEOUS

5.4.1002 Business and Calendar Days.

For purposes of this division, whenever reference is made to a number of days without qualification as to business or calendar days, such number of days shall be deemed to be calendar days

5.4.1004 Force Majeure.

In the event the grantee’s performance of any of the terms, conditions or obligations required of it under this division or its license award resolution is prevented by any cause or event not within the grantee’s control, such inability to perform shall be excused and no penalties or sanctions of any nature shall be imposed upon the grantee as a result thereof. For purposes of this section, causes or events not within the control of the grantee include, without limitation, strikes, labor strife, sabotage, riots or civil disturbances, actions of any government agency or court, explosions, acts of public enemies, natural disasters such as floods, earthquakes, landslides and fires, power or communication failures, embargoes, quotas, rationing, material shortages, inability to secure materials, services or equipment from normal sources of supply following diligent and timely efforts to do so, and inability to secure approvals, consents or authorizations from any person upon such terms and conditions as are reasonably satisfactory to the grantee after diligent and timely efforts to do so. The period of the grantee’s performance shall be extended by the period of any such delay provided that the grantee gives the county written notice of such delay promptly following its knowledge thereof.

5.4.1006 Notice.

Except as otherwise provided in this article, any notice, approval, consent, waiver or other communication required or permitted to be given or to be served upon any person in connection with a license award resolution shall be in writing. Such notices shall be addressed to the party whom such notice is to be given as follows: if to the grantee, at the offices of the grantee within the county; if to the county, to the License Administrator. Such notice shall be deemed received upon receipt by the addressee or the date of first attempted delivery by the United States Postal Service, whichever is earlier. Either party may change the address to which notice is to be given by providing written notice to the other party.

5.4.1008 Reporting Requirements.

All reports, filings, documents or responses required of the grantee under this Article or its license award resolution shall be provided by the grantee to the county within the period required therefor and shall contain the information specified, provided that the document or response is reasonably related to the obligations of the grantee under this article or its license award resolution.