2052_00001ORDINANCE NO.2052
AN ORDINANCEGRANTINGA FRANCHISE TO ABACUSCOMMUNICATIONS,INC,TOOPERATEANDMAINTAINACABLESYSTEMINTHECITVOFMOSESLAKEANDSETTINGFORTHCONDITIONSACCOMPANYINGTHEGRANTOFFRANCHISE.
THE CITYCOUNCIL OF THE CITYOF MOSES LAKE,WASHINGTON DOESORDAINAS FOLLOWS:
Section 1.Findings.Abacus Communications,Inc,doing business as Abacus Communications,("AbacusCommunications"or "Grantee")desires tooperate an cable system in the rights-of-way oftheCityofMosesLake.Negotiations between Abacus Communicationsand theCityhave been completedand the franchise
process followed inaccordance with the guidelines established by applicable law.As a conditionof receivingthisfranchise,Grantee has agreed toabide by the City's current and future lawful policies,ordinances andregulationsregardinginfrastructureusage,and street-cuts and rights-of-way.
Section 2.Adoption.This ordinanceshall be known as theAbacus Communications,Inc2002 Franchise andshallprovideasfollows:
TABLE OF CONTENTS
SECTION 1.DEFINITIONS
SECTION 2.GRANT OF FRANCHISE2.1 Grant2.2 Use of Public Streets and Ways2.3 Duration2.4 Effective Date2.5 Franchise Nonexclusvie2.6 Grantof Other Franchises2.7 Police Powers2.8 RelationstoOther Provisions of Law29EffectofAcceptance2.10 Effect ofChange in the Cable Act
SECTION 3.FRANCHISE FEE AND FINANCIALCONTROLS3.1 Franchise Fee3.2 Payments3.3 Acceptance of Payment and Recomputation3.4 Monthly Franchise Fee Reports3.5 Annual Franchise Fee ReportsO3.6 Interest on Late Payments3.7 Altemative Remedies3.8 Additional Commitments Not Franchise Fees3.9 Costs of Publication3.10 Tax Liability3.11 Payment on Termination
SECTION 4.ADMINISTRATIONAND REGULATION4.1 Authority4.2 Rates and Charges4.3 Rate Discrimination4.4 Filingof Rates and Charges4.5 Time LimitsStrictly Construed4.6 Performance Evaluation Sessions
SECTION 5.FINANCIALAND INDEMNIFICATIONREQUIREMENTS5.1 Indemnification5.2 Letter of Credit
SECTION 6.CUSTOMER SERVICE
6.1 Customer Service Standards6.2 Subscriber Privacy
6.3 Local Office6.4 Emergency Override
SECTION 7.REPORTS AND RECORDS7.1 Open Records7.2 Confidentiality7.3 Complaint File and ReportsO7.4 Inspection of Facilities7.5 False Statements
SECTION 8.PROGRAMMING8.1 Broad Programming Categories8.2 Parental Control Device8.3 Leased Access Channels8.4 Continuity of Service8.5 Service for Disabled8.6 Community Programming Needs8.7 Category Agreement
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SECTION 9.TEST ANDCOMPLIANCE PROCEDURE
SECTION 10.SERVICE EXTENSION,CONSTRUCTION AND INTERCONNECTION
10.1 Equivalent Service
10.2 Service Availability
10.3 Connectionof Public Facilities
SECTION 11.FRANCHISE VIOLATIONS;REVOCATION OF FRANCHISE
11.1 Procedure for Remedying Franchise Violations11.2 Revocation
11.3 Liquidated Damages11.4 Receivershipand Foreciosure11.5 NoRecourse Against Grantor11.6 Nonenforcement by Grantor11.7 Relationship of Remedies
SECTION 12.FRANCHISE RENEWAL ANDTRANSFER
12.1 Renewal12.2 Transfer of Ownershipor Control
SECTION 13.SEVERABILITY
SECTION 14.MISCELLANEOUS PROVISIONS
14.1 Preferential or Discriminatory Practices Prohibited
14.2 Notices14.3 Binding Effect14.4 Authority toAmend
14.5 GoverningLaw14.6 Guarantee14.7 Captions14.8 Constructionof Agreement14.9 Entire Agreement
14.10 Attorney's Fees
14.11 Time Is of the Essence
SECTION 1.DEFINITIONS.For the purposes of this Agreement and all exhibits attached hereto,the
following terms,phrases,words and theirderivations shall have the meaning given herein.When not
inconsistent withthecontext,words used in the present tenseinclude the future,words in the plural include
thesingular,and wordsin thesingularinclude theplural.Words not defined shallbe giventheircommon and
ordinary meaning.The word "shall"is always mandatoryand not merely directory.
1.1 "Affiliate"when used in connectionwithGrantee means any corporation,Person or entitywho owns
or controls,is owned or controlledby,or is under common ownershipor control with,Grantee.
1.2 "Basic Service"means anyservice tierwhich includes the retransmission of localtelevisionbroadcast
signals,or as such servicetiermay be further defined byfederal law.
1.3."Cable Act"mean theCable Communications Policy Actof1984 andtheCableTelevision Consumer
Protection and Competition Actof 1992 and anyamendments thereto,includingthosecontainedintheTelecommunicationsActof1996,and anyfuture federal cable televisionlegislation.
1.4 "Cable Operator"means any Person or groups of Persons,including Grantee,who provideCable
Service over a Cable System and directly or throughone or moreAffiliatesowna significantinterest
insuch CableSystemor who otherwisecontrolorare responsible for,throughanyarrangement,the
management and operation ofsuch a Cable System.
1.5 "CableService"means the one-way transmissionofvideo programmingor other programming service
to Subscribers,and Subscriber interaction,ifany,which is required for the selectionor use of such
video programming orother programming service,
1.6 "Cable System"means afacility,consisting of a setof closed transmissionpaths and associated signal
generation,reception,and control equipment thatisdesigned to provide Cable Service which includes
video programming and whichis provided to multiple Subscribers within a community,but such term
does not include (1)a facility that serves onlyto retransmit the televisionsignals of one or moretelevisionbroadcaststations;(2)a facilitythatserves Subscribers withoutusingany public right-of-way;
(3)a facilityof a commoncarrierwhich is subject,inwholeor in part,totheprovisionsof Title 11of the
federal Communications Act (47U.S.C.201 et seg.),except that such facilityshall be considered a
CableSystem (otherthanfor purposes ofSection 621(c)(47U.S.C.541(c))totheextent such facility
is used in thetransmissionofvideoprogramming directlytoSubscribers,unless the extent ofsuch use
is solely toprovide interactive on-demand service;(4)an openvideosystem thatcomplies withfederal
statutes;or (5)any facilities ofany electric utilityused solely for operatingits electricutilitysystems.
1.7 "ChanneP means a portion of the electromagnetic spectrumwhich is used ina Cable System and is
capable of delivering a televisionChannel,as televisionChannel is defined by the FCC in other
applicable regulations.
1,8 "Downstream"means thetransmissionfrom the Headend toremote points onthe Cable System orto
Interconnection points on theCable System,
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1.9 "TCC"means the Federal CommunicationsCommission.
1.10 "Franchise"means the non-exclusiveand revocable authorization or renewal thereoffor theconstruc-tionor operation of a Cable System such as is granted by thisAgreement,whether such authorizationisdesignatedasaFranchise,license,resolution,contract,certificate,agreement or otherwise.
1.11 "Franchise Area"means thearea within thejurisdictionalboundaries of the City,including any areasannexedbyGrantorduringthetermofthisAgreement.
1.12 "Gross Revenues"means allamounts accrued byGranteeinwhatever formand fromall sources,fromtheoperationofGrantee's Cable System to provide Cable ServicewithintheFranchise Area."GrossRevenues"shall include,without limitation,all amounts for allCableServices,including,but not limitedto,Basic,expandedbasic,premium,and pay-per-viewservices,advertisingsales and installationfeesandcharges."Gross Revenues"shall also include any revenue received by any Affiliateof GranteewheresuchrevenueintheordinarycourseofbusinesshasbeenpaidorshouldhavebeenpaidtoGranteefromtheoperationofitsCableSystemtoprovideCableServicewithintheFranchiseArea.Bywayofillustration and notlimitation,thisdefinition would include revenue derived from thesale ofCableSystemadvertisingtimebyanAffiliateofGrantee."Gross Revenues"shall notinclude bad debt,sales taxes,or othertaxeswhichare collectedbyGrantee onbehalf of,and for payment to,the local,state or federal government
1.13 "Headend"means afacilityforsignalreceptionanddissemination ona Cable System,includingcables,antennas,wires,satellite dishes,monitors,switches,modulators,processors and all other relatedequipmentandfacilities.
1.14 "Interconnect"means the provisionby Grantee of technical,engineering,physical,and all othernecessarycomponentstomaintainaphysicallinkingofGrantee's Cable System and Cable Service
or any designated Channel or signal pathwaythereofwith neighboring Cable Systems,so thatCableServiceoftechnicallyadequatequalitymaybesentto,and received from,other systems inaccordancewiththisAgreement.
1.16 "LeasedAccess Channel"means any Channel commerciallyavailablefor programmingfor a fee orchargebyGranteetomembersofthegeneralpublic.
1.16 "Person"means any individual,natural Person,sole proprietorship,partnership,association,orcorporation,orany other form ofentityororganization.
O 1.17 "School"means anyaccredited educationalinstitution,publicor private,including,but not limited to,primary and secondary Schools,and colleges and universities.
1.18 "grge_"means each of the following which have been dedicated to the publicor are hereafterdedicatedtothepublicandmaintainedunderpublicauthorityorbyothersandlocatedwithintheFranchiseArea:Streets,roadways,highways,avenues,lanes,alleys,sidewalks,easements,rights-of-way and similar public property and areas.
1.19 "Subscriber"means any Person who elects to subscribe to,for anypurpose,CableService providedbyGranteebymeansof,or inconnection with,theCable System,and whose premises are physicallywiredandlawfullyactivatedtoreceiveCableServicefromGrantee's Cable System.
A."Commercial Subscriber"whichmeans any Subscriber other thanResidential Subscriber.
B."Residential Subscriber"whichmeans anyPerson whoreceivesCable Service delivered tosingle
or multiple dwelling units,excluding such multiple dwelling units billed on a bulk-billingbasis.
1.20 "Upstream"means thecarryingof a transmissionto the Headend from remote pointson theCableSystemorfromInterconnectionpointsontheCableSystem.
SECTION 2.GRANT OF FRANCHISE
2.1 _G_rant:
A.This Agreement authorizes Grantee toengage inproviding Cable Service,as thattermis definedin47U.S.C.Sec.522(6),as amended.
B.Grantee promises and guarantees,as a condition of exercising the privileges granted by thisAgreement,that any Affiliate or jointventure or partner ofthe Grantee directly involved in theofferingofCableServiceintheFranchiseArea,or directly involved in the management orOoperationoftheCableSystemintheFranchiseAreawillalsocomplywiththetermsandconditionsofthisAgreement.
2.2 Use of Public Streets and Ways:Granteewillprovide a Cable Service within theFranchise Area bymeansofinfrastructureownedandmaintainedbyathirdpartywhichpartyhasseparatelyobtainedafranchisefromtheCitytolocateandmaintainitsinfrastructureinthepublicrights-of-way.Grantee isnotgrantedanypermissiontomakeanyuseoftheCity's rights-of-way except as a user ofthethirdparty's infrastructure upon such terms and conditions as the Grantee and the third party shalldetermine.
2.3 Duration:The term ofthisAgreementand allrights,privileges,obligations and restrictions pertainingtheretoshallbefromtheeffectivedateofthisAgreementthroughMarch31,2012.
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2.4 Effective Date:The effective date ofthisAgreement shallbe March 1,2002,unless Granteefails tofileanunconditionalwrittenacceptanceofthisAgreementbyApril1,2002,in which event thisAgreementshallbenullandvoid,and anyand all rights of Grantee tooperate a Cable System within
theFranchise Area under thisAgreement are hereby terminated.
2.5 Franchise Nonexclusive:This Agreement shall be nonexclusive,and is subject to all prior rights,
interests,agreements,permits,easements or licenses granted by Grantor and for such additional
Franchises for Cable Systems as Grantor deems appropriate,uponsuch terms and conditions asGrantordeemsappropriate.
2.6 Grant of Other Franchises:
A.Intheevent theGrantorenters intoa Franchise,permit,license,authorization,orother agreement
of any kindwithany other Person or entity other thantheGrantee for thepurpose ofconstructing
or operating a CableSystem or providing Cable Service toany part ofthe Service Area,in which
theGranteeis actuallyproviding Cable Service under thetermsand conditions ofthisAgreement,
thematerial provisions thereofshall be reasonably comparable tothosecontainedherein,inorder
thatone operator not be granted an unfair competitiveadvantage overanother,and toprovide allpartiesequalprotectionunderthelaw.
B.If Grantorgrants a Franchise to a third party for senrice to an area thatGrantee is not actuallyservingorrequiredtoextendserviceto,and which has material provisions thatarenot reasonably
comparabletothosecontainedherein,GrantorshallofferGrantee a Franchisetoserve thesame
area under terms and conditions that are reasonably comparable to those set forth in theFranchiseAgreemententeredintowiththethirdparty.
2.7 PolicePowers:Grantee's rights hereunder are subject tothelawfulpolicepowers of Grantortoadopt
and enforce ordinances necessary tothesafety,health,and welfare ofthepublic,and Granteeagreestocomplywithallapplicablelawsandordinancesenacted,or hereafter enacted,by Grantor or anyotherlegally-constituted governmental unit having lawful jurisdictionover thesubject matter hereof.
Notwithstanding theforegoing,Grantoragrees itwillnot impose any regulationpursuanttothe CableActnotcontainedhereinduringthetermofthisFranchisewithoutnegotiationwiththeGranteeandanopportunityfortheGranteetoterminatethisFranchiseratherthanacceptfurtherregulationunderthe
powers granted theGrantor under theCableAct.
2.8 Relations toOther Provisions of Law:This Franchise Agreement andallrights and privileges granted
under the Franchise are subject to,and theGrantee must exercise all rightsin accordance with,
applicablelaw,as amended over theFranchise term.However,thisFranchise is a contract,subject
only to theGrantor'sexercise of its policeand other powersand applicablelaw.This Franchise does
not confer rightsor immunities upon theGranteeotherthanas expressly provided herein.InthecaseofanyconflictbetweentheexpresstermsofthisFranchiseAgreementandanyordinanceofgeneral
applicationenacted pursuant totheGrantor's police power,theordinance shallgovem.Grantee does
not waive its righttochallenge the lawfulness ofa particular enactment,including on thegroundsthat
a particular actionis an unconstitutional impairment of contractualrights.The Franchise issued and
theFranchise fee paid hereunder are not in lieuofanyotherrequired permit,authorization,fee,charge
or tax,unless expressly stated herein.
2.9 EffectofAcceptance:By accepting theAgreement,theGrantee:(1)acknowledgesand accepts the
Grantor's legal rightto issue and enforcetheAgreement;(2)agrees thatitwillnotopposethe Grantor's
intervening inany proceeding affectingtheCable System;(3)accepts and agrees tocomply with each
and everyprovision of thisAgreement;and (4)agrees that theAgreement was granted pursuantto
processes and procedures consistent with applicablelaw,and thatit willnot raise any claim tothe
contrary.
2.10 Effect of Change in theCable Act:This form of Franchise is agreed tobetween the parties owingtotheprovisionsoftheCableActinplaceatthetimeitwasenteredinto.Intheevent the Cable Act areamendedorotherFederallegislationisadoptedprovidingothermeanstoregulateGrantee's activity,
theGrantor and Grantee agree tonegotiate toimplement such other means of regulationofGrantee's
activity.
SECTION 3.FRANCHISE FEE AND FINANCIALCONTROLS
3.1 Franchise Fee:Ascompensation for thebenefits and privileges granted under thisAgreement and
in consideration of permission to use Grantor's Streets,Grantee shall pay as a Franchise fee toGrantor,throughouttheduration ofthisAgreement,an amountequal tofive percent (5%)ofGrantee's
Gross Revenues derived from the operationoftheCable System to provide Cable Service in the
Franchise Area.Accrual of such Franchise fees shall commence as of the effective date of this
Agreement The Franchise fees are in additionto all other fees,assessments,taxes or paymentsof
general applicabilitythattheGrantee maybe requiredtopay under anyfederal,state orlocal law.This
Agreement and the Franchise fees paid hereunder are notin lieu of any other generally applicable
required permit,authorization,fee,charge ortax.
3.2 Payments:Grantee's Franchise fee payments toGrantor shallbe computed monthly.Each monthly
payment shall be due and payable no later than thirty(30)days after thelast day of thepreceding
month.
3.3 Acceptance of Pavment and Recomputation:Noacceptance of any payment shallbe construed as
an accord byGrantor thattheamount paidis,infact,thecorrectamount,nor shall any acceptance of
payments be construed as a release of any claim Grantor may have for further or additional sums
payableor for theperformance of any otherobligation ofGrantee.
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3.4 Monthly Franchise Fee Reports:Each paymentshall be accompanied by a written report toGrantor,containingan accurate statement in summarized form,as well as in detail,of Grantee's GrossRevenuesandthecomputationofthepaymentamount
3.5 Annual FranchiseFee Reports:Onan annual basis,upon thirty(30)days'priorwritten notice,GrantorshallhavetherighttoconductanindependentauditofGrantee's records reasonably relatedtotheadministrationorenforcementofthisAgreement,in accordance with generallyaccepted accountingprinciples.The Citymayhire an independent certifiedpublic accountant toaudit theGrantee'sfinancialOrecords,inwhich case theGrantee shall provide all necessary records tothecertified public accoun-tant,If the audit shows that Franchisee fees have been underpaid by four percent (4%)or more,Grantee shall paythetotalcost of the audit.
3.6 Interest on Late Pavments:Inthe eventthat a franchise fee payment or other sum is not received bytheGrantoronorbeforetheduedate,or is underpaid,the Grantee shall pay in addition to thepayment,or sum due,interest from thedue date at a rate equal to the interest rate specified forjudgmentsenteredintheSuperiorCourtoftheStateofWashington.
3.7 Alternative Remedies:If any Section,subsection,paragraph,termor provision of this FranchiseAgreementoranyordinance,law,or document incorporated herein by reference is held bya courtofcompetentjurisdictiontobeinvalid,unconstitutional or unenforceable,such holding shall be confinedinitsoperationtotheSection,subsection,paragraph,term or provision directly involved in thecontroversyinwhichsuchholdingshallhavebeenrenderedandshallnotinanywayaffectthevalidityofanyotherSection,subsection,paragraph,termor provision hereof.Under such a circumstance,theGranteeshall,upon theGrantor'srequest,meet andconferwiththeGrantor toconsideramendmentstotheFranchiseAgreement.The purpose of theamendments shall be toplace the parties,as nearlyaspossible,intheposition thatthey were inpriorto such determination,consistent withapplicablelaw.Intheeventtheparties are unable toagree toa modificationofthisAgreement withinsixty (60)days,either partymayeither(1)resortto litigation toamend theAgreement;or (2)shortenthe Agreementto36months,at which point either party may invoke the renewal procedures under 47 U.S.C.subsection 546.Each partyagrees to participatein up tosixteen (16)hours of negotiation during thesixty(60)day period.
3.8 Additional Commitments NotFranchise Fees:Notermor condition inthisAgreement shall inany waymodifyoraffectGrantee's obligationto pay Franchise fees to Grantor.Although the totalsum ofFranchisefeepaymentsandadditionalcommitmentssetforthelsewhereinthisAgreementmaytotalmorethanfivepercent(5%)of Grantee's Gross Revenues in any 12-month period,Grantee agreesthattheadditionalcommitmentshereinarenotFranchisefeesasdefinedunderanyfederallaw,noraretheytobeoffsetorcreditedagainstanyFranchisefeepaymentsduetoGrantor.
3.9 Costs of Publication:Grantee shall pay the reasonable cost of newspaper notices and publicationpertainingtothisAgreementandanyamendmentsthereto,as such noticeorpublicationis reasonablyrequiredbyGrantororapplicablelaw.
3.10 Tax Liability:Payment oftheFranchisefees underthisAgreement shallnot exemptGranteefrom thepaymentofanygenerallyapplicablelicense,permit fee or other generallyapplicable fee,taxorchargeonthebusiness,occupation,property or income ofGrantee thatmaybe imposed by Grantor.
3.11 Payment on Termination:IfthisAgreement terminatesfor any reason,the Grantee shall filewith theGrantorwithinninety(90)calendardays ofthedate ofthetermination,a financial statement,certifiedbyanindependentcertifiedpublicaccountant,showing the Gross Revenues receivedby the Granteesincetheendofthepreviousfiscalyear.The Grantor reserves the right to satisfy any remainingfinancialobligationsoftheGranteetotheGrantorbyutilizingthefundsavailableinanyLetterofCreditorothersecurityprovidedbytheGrantee.
SECTION 4.ADNIINISTRATIONAND REGULATION
4.1 Authoritv:Grantor isvested withthepower and rightto regulate theexerciseoftheprivileges permittedbythisAgreementinthepublicinterest,or todelegate that powerand right,or any part thereof,totheextentpermittedunderstateandlocallaw,toany agent,in its sole discretion.
4.2 Rates and Charges:AllofGrantee's rates and charges related toor regarding Cable Service shall besubjecttoregulationbyGrantortothefullextentauthorizedbyapplicablefederal,state andlocal laws.
4.3 Rate Discrimination:AIIof Grantee's rates and charges shall be published (in the form of a pub-licly-available rate card),and shall be nondiscriminatory as toall Persons and organizations of similarclasses,under similar circumstancesand conditions.Grantee shall apply its rates inaccordance withgoverninglaw,withsimilarrates and charges for all Subscribers receivingsimilarCable Service,without regard torace,color,familial,ethnicor national origin,religion,age,sex,seXual orientation,marital,military or economic status,or physicalor mental disability,or geographic location in theFranchiseArea.Grantee shallprovideequivalent Cable ServicetoallresidentialSubscribersat similarratesandtocommercialSubscribersasauthorizedbyapplicablelaws.Nothing herein shall beconstruedtoprohibit:
A.The temporaryreduction or waiving of rates or charges in conjunction with valid promotionalcampaigns;
8.The offering of reasonable discounts to senior citizensor economicallydisadvantaged citizens;
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C.Grantee from establishing different and nondiscriminatoryrates and charges and classes of
serviceforcommercial customers,aswellas different nondiscriminatorymonthly ratesforclasses
ofcommercialcustomers as allowable by federal law and regulations;or
D.Grantee from establishing different and nondiscriminatoryrates and charges for residential
Subscribers as allowableby federal law and regulations.
4.4 Filingof Rates and Charqes:
A.Throughout the termof thisAgreement,Grantee shall maintainon filewithGrantor a complete
schedule of applicable rates and charges for Cable Service provided under this Agreement.
Nothing in this subsectionshall be construed torequireGrantee tofilerates and charges under
temporaryreductions orwaiversofrates and charges inconjunction with promotional campaigns
providedthatGrantee shall make reasonable effortstonotifyGrantorinwriting inadvance ofsuch
promotions.
B.Grantee shall provide upon request from Grantora complete schedule of current rates and
charges for any and all Leased Access Channels,or portionsof such Channels,provided by
Grantee.The schedule shallinclude a description oftheprice,termsand conditions established
by Granteefor Leased Access Channels.
4.5 Time LimitsStrictivConstrued:Whenever thisAgreement sets forth a timeforanyact tobe performed
by Grantee,such timeshall be deemed to be of the essence,and any failure ofGrantee to perform
withintheallottedtimemaybe considered a material violationofthisAgreement and sufficient grounds
for Grantor toinvoke any relevant provisionofthisAgreement.However,intheevent thatGrantee is
prevented or delayed in the performanceof any of its obligationsunder thisAgreement by reason
beyond the reasonable controlof Grantee,such as acts of God (forexample,floods,tornadoes,earthquakes orunusuallysevereweather conditions),Grantee'sperformance shall be excusedduring
theforce majeureoccurrence andGranteethereaftershall,under thecircumstances,promptlyperform
theaffected obligationsunder thisAgreement or procure a substitute for such obligationwhich is
satisfactory toGrantor.Granteeshall notbeexcused bymere economic hardship nor by misfeasance
or malfeasance ofits directors,officers oremployees.
4.6 Performance Evaluation Sessions:
A.Grantor may hold regular performance evaluation sessions annually onthe anniversarydates of
theeffectivedate ofthisAgreement.AIIsuch evaluationsessions shall be conductedby Grantor.
B.Special evaluation sessions may be held at any timeby Grantor duringthetermofthisAgreement.
C.AIIregular evaluation sessions shalfbe open tothe public and announced at least one week in
advance in a newspaper of general circulation inthe Franchise Area.
D.Evaluationsessions shalldeal withtheGrantee's performanceofthetermsand conditionsofthe
Franchise and compliancewithstate and federallaws and regulations.
E.As partof the annual performance evaluation session,Granteeshall submit to the Grantor a list
ofallCable Services available.IftheGrantor has reason tobelieve thata portionor alloftheCable
System does notmeetthe applicable FCC technicalstandards,theGrantor,at itsexpense,retains
the right to appoint a qualified independent engineer toevaluate and verify thetechnicalperfor-
mance of the Cable System.
F.Duringevaluations under thisSection,Granteeshallfullycooperate withGrantor and shall provide
such information and documents as necessary and reasonable for Grantor to perform the
evaluation.
SECTION 5.FINANCIALAND INDEMNIFICATIONREQUIREMENTS
5.1 Indemnification:
A.Scope ofIndemnity:Grantee shall,at itssole cost and expense,indemnify,hold harmless,and
defend theGrantor and itsofficers,boards,commissions,agents,andernployeesagainstany and
allclaims,including,but not limitedto,thirdparty claims,suits,causes of action,proceedings,and
judgments for damages or equitable relief arising out of the operation of its Cable System
regardless ofwhetherthe act or omission complained of is authorized,allowed,or prohibited by
thisAgreement provided,however,theGrantee willnot be obligated to Indemnify Grantor should
Grantor intervene inanyproceedingregarding thegrantofthisAgreement pursuant toSection 2.9
of thisAgreement Withoutlimitingin anyway the Grantee's obligation to indemnify the Grantor
and its officers,boards,commissions,agents,andemployees,as setforth above,thisindemnity
provision also includes damages and liabilities such as:
1)To Persons or propedy,in any way arisingout ofor through the acts or omissions of the
Grantee,itscontractors,subcontractors and theirofficers,employees,or agents,or towhich
the Grantee's negligence shall in anyway contribute;
2)Arising out of anyclaimfor invasion oftheright of privacy;for defamation of any Person,firm
or corporation;for the violation or infringement of any copyright,trademark,trade name,
service mark,or patent;fora failure by theGrantee to secureconsents fromthe ownersor
authorized distributors of programs to be delivered bythe Cable System;or forviolationofany
other rightofany Person;
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3)Arising out of Grantee's failureto complywiththe provisions of any federal,state or localstatute,ordinance,ruleor regulationapplicable totheGrantee with respect to any aspect ofitsbusinesstowhichthisAgreementapplies;and
4)Arisingfrom anythirdpartysuit,actionorlitigation,whether brought bya competitor toGrantee
orbyany other Person or entity,whether such Person orentitydoes ordoes not have standingtobringsuchsuit,actionor litigation ifsuch action(1)challenges the authorityoftheGrantortoissuethisAgreementtoGrantee;or (2)allegesthat,in issuing thisAgreement toGrantee,the Grantor has acted in a disparate or discriminatory manner.
B.DutytoGive Notice and Tender Defense:The GrantorshallgivetheGranteetimelywrittennoticeofanyclaimorofthecommencementofanyaction,suit or other proceeding covered by theindemnityinthisSection.Intheevent any such claim arises,the Grantor or anyother indemnifiedpartyshalltenderthedefensethereoftotheGranteeandtheGranteeshallhavetheobligationanddutytodefend,settle or compromise any claims arising thereunder,and the Grantor shallcooperatefullytherein.Grantee shall accept ordeclinethetenderwithin thirty(30)days.Granteeshallreimbursereasonableattomeys'fees and costs incurred bythe Grantorduringthethirty(30)day periodinwhich theGranteeaccepts ordeclines tender.IntheeventthattheGranteedeclinesdefenseoftheclaiminviolationofSection5.3,theGrantor may defend such claim and seekrecoveryfromGranteeitsexpensesforreasonableattorneys'fees and disbursements,includingexpertwitnessfees,incurred by Grantor for defense and in seeking such recovery.
5.2 Performance Bond:Upon or before theeffectivedate of thisFranchise,Grantee shall obtainandmaintainduringtheentiretermofthisFranchise,including anyextensions orrenewalsthereof,at its
own cost and expense,a performance bond thatshall be filed with the Grantor inthe amount of sixthousanddollars($6,000)as guarantee forthefaithfulperformance by it of all the provisionsofthisFranchise.Such bond shall be reviewed at theend ofsixty(60)months.The amount ofthe bond shallbesetfortheremainderofthefranchisetermatthelesserofsixthousanddollars($6,000)or theamountoffranchisefeespaidinthesixtieth(60th)month.
SECTION 6.CUSTOMER SERVICE
6.1 Customer Service Standards:The Grantee shall meet or exceed any customer service standardsadoptedbytheFCCand,to the extent the same are stricter or address different matters,thoseadoptednoworinthefuturebytheGrantor.
6.2 SubscriberPrivacv:Grantee willcomply with privacyrights ofSubscribersin accordance withfederal,state and local law.
6.3 Local CustomerAccess:Throughout the Agreement term,the Grantee shall providetelephonesandotherequipmentsothatcustomercomplaintsandservicerequestscanbereceivedbyGranteeona24-hour basis at a toll-freetelephonenumber.
6.4 Emergency Override:The Grantee shall maintain systems,equipment,and procedures permittingpreemptingoftheregularsignalonallchannelswithemergencywarningsignalsoriginatingfromtheGrantCountyEmergencyServices(GCES).The following stipulations shall apply,except where andtowhatextenttheymaybepreemptedbyFCCregulations:
A.The Director ofthe GCES shall determine when theEmergency Cable Overrideis tobe activatedinresponsetoactualorimpendingemergencyconditions.
B.The Grantee shall provide and maintain all equipment,systems,software,services,securityprovisions,and procedures required for a fully operationalemergency cable overridewamingsysteminaccordancewithFCCrules.Any equipment necessary for activationof thesystem bytheGCESshallbeprovidedbytheGrantor.Activation points shall be at the GCESand one otherbackuppointwithintheGrantCountyarea,as mutually agreed upon by the parties.
C.The cable overrideshall consist of audio and crawlertextsignals as required by the FederalCommunicationsCommissionrulesgoverningthenewEmergencyAlertSystem(EAS).
D.The system shall be tested as determined bythe GCES notmorethanmonthlyand not less thanannually.
E.The Grantee shall cooperate fullywiththe GCES in allother matters pertaining to a functioning
emergency cable override system.
F.Shouldtheowneroftheinfrastructure which is themeans oftransmissionof theCableServiceauthorizedinthisAgreementprovidetheemergencyoverrideacceptabletotheGCES,thentheGranteeshallhavenofurtherobligationunderthisprovision.
SECTION 7.REPORTS AND RECORDS
7.1 Open Records:Grantee shall manage all of its operations in accordance with a policyofkeeping itsdocumentsandrecordsopenandaccessibletoCity.Cityshall have access to,andthe rightto inspect,any books and records ofGrantee,its parent corporationsandAffiliatedentitieswhich are reasonablyrelatedandnecessarytotheadministrationorenforcementofthetermsofthisAgreementGranteeshallnotdenyCityaccesstoanysuchrecordsofGranteeonthebasisthatGrantee's records areunderthecontrolofanyparentcorporation,affiliatedentityora thirdpartyrelated tothisAgreement.Citymay,in writing,request copies of any such records or books and Grantee shall providesuchcopieswithinthirty(30)days of thetransmittalofsuch request One copy of all repolts and records
Ordinance #2052
page 8
required under thisor any other Section shall be furnished to Cityat the sole expense of Grantee.If
the requested books and records are toovoluminous,or for securityreasons cannot be copied orremoved,then Grantee may request,inwritingwithin ten (10)days,that Cityinspect them at one of
Grantee's local area offices.Ifany books or records ofGrantee are not kept in a local area office and
not made available incopies toCityupon written request as setforth above,and ifCitydetermines that
anexaminationof such recordsis necessary or appropriate totheperformance ofany ofCity's duties,
administration or enforcement of thisAgreement,thenall reasonable travelexpenses incurred in
making such examination shall be paid by Grantee.Ifany books or records of Grantee are notkept
in a local office,Grantee willprovideor otherwisemake such documents availablefor inspection and
review at thelocal officewithinten (10)working days.
7.2 Confidentiality:City agrees totreatas confidential any books and records thatconstitute proprietary
or confidentialinformation under federal orstate law,to theextent Grantee makes Cityaware ofsuch
confidentiality.Grantee shall be responsible forclearly and conspicuously stamping theword"Confiden-
tial"oneach page that contains confidential or proprietary information,and shall provide a brief written
explanation as to why such information is confidential under state orfederal law.If City receives ademandfromanyPersonfordisclosureofanyinformationdesignatedbyGranteeasconfidential,City
shall,so faras consistent with applicablelaw,advise Grantee in advance so thatGrantee maytakeappropriatestepstoprotectitsinterestsandprovideGranteewithacopyofanywrittenrequestbythe
partydemanding access to such information withina reasonable time.Untilotherwiseordered by acourtoragencyofcompetentjurisdiction,Cityagrees that,totheextentpermitted by state and federal
law,itshall deny access toanyofGrantee's booksand records markedconfidentialas set forth above
toany Person.
7.3 Complaint File:Grantee shall keep an accurate and comprehensive file of any and all complaints
regarding theCable System as required bythe FCC.
7.4 Insoection ofFacilities:City may inspect upon request any of Grantee's facilities and equipmenttoconfirmperformanceunderthisAgreementatanytimeuponatleastforty-eight (48)hours notice,or,incase of an emergency,upon demand without priornotice.
7.5 False Statements:Any intentional false or misleadingstatement or representation in any report
required by thisAgreement may be deemed a material violation ofthis Agreement and may subject
Grantee to all remedies,legal or equitable,which are availableto City under this Agreement or
otherwise.
SECTION 8.PROGRAMMING
8.1 Broad Programming Categories:
A.Grantee's cable televisionsystem shall provide the widest diversity of programmingpossible.
Grantee shall provide at least thefollowingbroad categories of programming to theextent such
categories are reasonably available:
1)Educational programming;
2)Washington State newsand information;
3)Sports;4)Generalentertainment(includingmovies);
5)Children/family-oriented;6)Arts,cultureand performing arts;
7)Foreign language;8)Scienceldocumentary;
9)Weather information;
10)Programming addressed to diverse ethnicand minorityinterests inthe Franchise Area;and
11)National,state,and local governmentaffairs.
B.Grantee shall not delete any broad category of programmingwithin its control.
8.2 Parental Control Device:Upon request by any Subscriber,Grantee shall,without charge,fully
scramble or otherwise fully block theaudio and video programming of each channel carrying such
programmingsothatone nota Subscriber does not receive it.Upon request by a Subscriber,Grantee
may install a filterto block at least thevideo of certain channels a Subscriber subscribes to but finds
objectionable.
8.3 Leased Access Channels:Grantee shall meetthe requirements forLeased Access Channels imposed
by federal law.
8.4 ContinuityofService:
A.Itshall be the rightof allSubscribers tocontinue toreceive Cable Service from Grantee insofar
as their financial and other obligations to Grantee are satisfied.Subject to the force majeure
provisions of this Agreement,Grantee shall use its best efforts toensure thatall Subscribers
receive continuous,uninterruptedCable Service.
B.Inthe event ofa change in ownership,or in the event a new Cable Operator acquirestheCable
System inaccordancewith thisAgreement,Grantee shallcooperatewith Cityand such newCable
Operator in maintaining continuityof servicetoall Subscribers.
Ordinance #2052Page9
8.5 Closed Cantioning:Grantee shallretransmit allclosed-captioned signals madeavailablebyprogram-mers inconjunction with programmingin its line-up and which are required tobe carriedby theFCCinordertofacilitateviewingbyhandicappedpersons.Grantee shall comply with the Americans WithDisabilitiesAct,any amendments thereto and any other applicable federal,state or local laws orregulations.Granteeshall maintain the necessary head-end equipmenttomakeSAP features availabletoSubscribers.Grantee's obligations under this subsection do not extend to providing customerpremisesequipment.
O 8.6 CommunitvProgramming Needs:Atthe request of theMayor,but no more thantwice,ninety (90)daysaftersuchrequest,the Grantee shall furnish to all subscribers along with theirmonthly servicestatement,a listof broad categories of programming,and other services available toGrantee,subjecttopriorreviewbytheMayor.The menu to be intheformat of a mailbacksurvey for determination ofthesubscribersprogrammingpreference.The results of the surveyare tobe provided theCity bytheGranteewithanyproposedchange(s)inprogramming toaccommodatesubscriber'sdesiredrevisions
as indicated by theresults of the survey.
8.7 Category Agreement The parties expresslyagree thattheprogrammingdescribed inparagraph 8.1representbroadcategoriesofvideoprogrammingwithinthemeaningof47U.S.C.544(b)(2)(B).
SECTION 9.TEST AND COMPLIANCE PROCEDURES:Upon request,Grantee shall advise Grantor ofschedulesandmethodsfortestingtheCableSystemonaregularbasistodeterminecompliancewiththeprovisionsofapplicableFCCtechnicalstandards.Tests may be witnessed by representatives ofGrantor,andwrittentestreportsmaybemadeavailabletoGrantoruponrequest.As required by FCC Rules,GranteeshallconductproofofperformancetestsandcumulativeleakageindextestsdesignedtodemonstratecompliancewithFCCrequirements.Grantee shall provideGrantorsummary written reports of theresults ofsuch tests.
SECTION 10.SERVICE EXTENSION,CONSTRUCTION,AND INTERCONNECTION:
10.1 Eguivalent Service:Itis Grantee's general policythatallresidentialdwellingunitsintheFranchise AreahaveequivalentavailabilitytoCableServicefromGrantee's Cable System undernondiscriminatoryratesandreasonabletermsandconditions,GranteeshallnotarbitrarilyrefusetoprovideCableServicetoanyPersonwithinitsFranchiseArea.
10.2 Service Availability:Grantee shall provide Cable Service in newly constructed areas as soon as theinfrastructurecarryingGrantee's Cable Service is installed and operational.
10.3 Connection ofPublic Facilities:Grantee shall,at no cost toGrantor,provide at least one (1)outlet of
O Basic and expanded basic programmingto all City/Grant County buildings,as designated by theGrantor,and alllibraries and Schools.In addition,Grantee shall provide,at no cost to the building
owner,one (1)outlet of Basic and expanded basic programmingto all such future public buildings.Outlets of Basic and expanded basic programming provided in accordance with thissubsection maybeusedtodistributeCableServicethroughoutsuchbuildings,provided such distribution can beaccomplishedwithoutcausingCableSystemdisruptionandgeneraltechnicalstandardsaremain-tained.
SECTION 11.FRANCHISE VIOLATIONS:REVOCATION OF FRANCHISE
11.1 Procedure forRemedying Franchise Violations:
A.If Grantor reasonably believes that Grantee has failed to perform any obligationunder thisFranchiseorhasfailedtoperforminatimelymanner,Grantor shall notify Grantee in writing,statingwithreasonable specificitythenature of thealleged violation.Granteeshallhave thirty(30)days from thedate of receipt of such notice to:
1)Respond toGrantor,contestingGrantor's assertion thata violation has occurred,and requestahearinginaccordancewithsubsectionCbelow;or
2)Cure the violation;or
3.NotifyGrantorthatGrantee cannot curetheviolation withinthe thirty(30)days,because ofthenatureoftheviolationandnotifytheGrantorinwritingofwhatstepstheGranteeshalltaketocuretheviolationincludingtheGrantee's projectedcompletiondate for such cure.In suchcase,Grantor shall set a hearing date within thirty(30)days of receipt of such response inaccordancewithsubsection(B)below.
B.In the event that the Grantee notifies the Grantor thatit cannot cure theviolation withinthe thirty(30)day cure period,Grantor or its designee shall set a publichearing within thirty(30)days ofOGrantor's receipt of such notice to review and determine whetherthe Grantee has taken reason-able steps tocure theviolationand whether theGrantee's proposed plan and completion date forcurearereasonable.In theevent such plan and completiondate are found tobe reasonable,thesameshallbeapprovedbytheGrantor.
C.In theevent thattheGrantee fails to cure theviolation withinthethirty(30)day basic cure period,orwithinan extended cureperiod approved bytheGrantor ordesignee pursuant to subsection(B),theGrantor or designee shall set a public hearing todetermine what sanctions shall be applied.In theevent thattheGrantee contests theGrantor's assertion that a violationhas occurred,andrequestsahearinginaccordancewithsubsection(A)(1)above,the Grantoror designee shallsetapublichearingwithinsixty(60)days oftheGrantor's receipt ofthehearing request todeterminewhethertheviolationhasoccurred,and ifa violation is found,what sanctions shallbe applied.
Ordinance #2052Page10
D.Inthecase ofany hearing pursuant tothisSection,Grantorshall notifyGranteeofthe hearing in
writingand at the hearing,Grantee shall be providedan opportunity to be heard and to presentevidenceinitsdefense.The Grantor shallalso hear any other Person interested therein.
E.If,after the publichearing,Grantor or designee determines that a violation exists,Grantor ordesigneemayutilizeoneormoreofthefollowingremediessubjecttoGrantee's rights under
federal,state or local law toappeal such determination:
1)OrddeerGraenetee door t or remedy theviolation within a reasonable timeframe as Grantor
2)Revoke this Franchise,subject tosubsection (F)of thisSection;and/or
3)Pursue any other legal orequitableremedy availableunder thisFranchise or any applicable
law.
F.This Franchise shallnot be revoked except by City Councilafternotice and hearing as set forth
inthisSection and inaccordance withtheCable Act and other applicable law.
G.The determination as towhethera violationofthis Franchise has occurred shallbe withinthesole
discretion oftheGrantor or itsdesignee,provided thatany such finaldetermination shall be subject
to review by a courtofcompetentjurisdictionunderapplicable law.
11.2 Revocation:Inaddition toall other rights and powersretained bytheGrantorunder thisFranchise or
otherwise,the Grantor reserves the right toforfeit and terminatethis Franchise and all rights and
privileges of the Grantee hereunder intheeventofa material violation of its terms and conditions.A
material violation by the Grantee shall include,but shall not be limitedto,the following:
A.Violation of any materialprovision ofthis Franchise orany other Franchise between Grantorand
Grantee,or anymaterialrule,order,regulation ordeterminationoftheGrantororauthorizedagent
made pursuantto thisFranchise or other agreement;
B.Attempt to evade any materialprovision ofthis Franchise or to practice anyfraud or deceit upon
theGrantoror its Subscribersor customers;
C.Material misrepresentation of fact in the applicationfor or negotiation ofthis Franchise;or
D.IfGrantee becomes insolvent,or thesubject of a bankruptcy proceeding.
11.3 Removal:
A.In the event of termination,expiration or revocationof this Franchise,Grantor may order theremovaloftheabove-groundCable System facilities and such undergroundfacilitiesas required
by Grantorinordertoachieve reasonableengineeringor Street-usepurposes,fromtheFranchise
Area at Grantee's soleexpense.Grantee shall have one (1)nine(9)month periodwithinwhichto
sell,transferor convey itsCable System toa qualified purchaser,ortoremoveits plant,structures
and equipmentfrom theGrantor's Streets and other publicplaces as directed by theGrantor.
During thisperiod whichshall runfrom the effective date of thefinal,non-appealableorder ordecisionofthecitycounciloracourtofcompetentjurisdictionimposingtermination,the Grantee
shall have the abilitytooperate the CableSystempursuant tothe provisions of thisFranchise.In
removing its plant,structures and equipment,Grantee shall refill,at its own expense,any
excavationthatis made by itand shall leave allStreets,public places and private property in as
good a condition as thatprevailing prior toGrantee's removal of its equipment.
B.IfGrantee fails tocomplete anyrequired removalpursuant toSubsection (A)tothe satisfaction of
Grantor,Grantor may cause the work to be done and Grantee shall reimburseGrantor for the
reasonable costs incurred withinthirty(30)days after receipt of an itemized list of thecosts orGrantormayrecoverthecoststhroughthesecurityprovidedbyGrantee.
11.4 Receivership and Foreciosure:
A.At theoption ofGrantor,subject toapplicablelaw,this Franchise may be revoked one-hundred
twenty(120)days after the appointment of a receiver or trustee to take over and conduct the
business of Grantee whether in a receivership,reorganization,bankruptcy or other action or
proceeding unless:
1)The receivership or trusteeshipis vacated withinone-hundred twenty(120)days of appoint-
ment;or
2)The receiver(s)or trustee(s)have,within one hundred twenty(120)days after theirelection
or appointment,fullycomplied withallthetermsand provisionsof thisFranchise,and have
remedied all violationsunder the Franchise.Additionally,thereceiver(s)or trustee(s)shall
have executed an agreement duly approved by the court having jurisdictíon,by whichthe
receiver(s)ortrustee(s)assume and agree tobe bound byeach and everytermand provision
ofthisFranchise.
B.Ifthere is a foreclosure orother involuntary sale ofthewhole orany partofthe plant,propertyand
equipmentofGrantee,Grantor mayserve notice ofrevocation on Grantee and tothepurchaser
at thesale,and the rights and privilegesof Grantee under this Franchise shall be revoked thirty(30)days after serviceof such notice,unless:
Ordinance#2052Page11
1)Grantor has approved the transferof the Franchise,in accordance withthe procedures setforthinthisFranchiseandasprovidedbylaw;and
2)The purchaser has agreed with Grantor to assume and be bound by all of the termsandconditionsofthisFranchise,
11.5 No Recourse Aqainst Grantor:Except where otherwiseprovided herein,Grantee shall not have anymonetaryrecourseagainstGrantororitsofficials,boards,commissions,agents or employeesfor anyOloss,costs,expenses or damages arising out of any provision or requirement of thisFranchise or theenforcementthereof,inaccordance withtheprovisions ofapplicablefederal,state and local law.TherightsoftheGrantorunderthisFranchiseareinadditionto,and shall not be read to limit,anyimmunitiestheGrantormayenjoyunderfederalorstatelaw.
11.6 Nonenforcement bv Grantor:Grantee is not relievedof its obligationto complywith any of theprovisionsofthisFranchisebyreasonofanyfailureofGrantortoenforcepromptcompliance.Grantor's forbearance or failure toenforce any provision of thisFranchise shall not serve as a basistostopanysubsequentenforcement.The failure oftheGrantor on oneor more occasions toexercisearightortorequirecomplianceorperformanceunderthisFranchiseoranyapplicablelawshallnotbedeemedtoconstituteawaiverofsuchrightorawaiverofcomplianceorperformance,unless suchrighthasbeenspecificallywaivedinwriting.Any waiver of a violation is not a waiver of any otherviolation;whether similar or different from that waived.
11.7 Relationship of Remedies:The remedies provided for in this Franchise are cumulative and notexclusive;the exercise of one remedy shall not prevent theexercise of another,or any rights of theGrantoratlaworequity.
SECTION 12.FRANCHISE RENEWAL AND TRANSFER
12.1 Renewal:
A.The Grantor andGranteeagree thatanyproceedingsundertaken bythe Grantor thatrelate totherenewalofGrantee'sAgreement shallbe governedby and complywiththeprovisionsof Section626oftheCableAct,unlesstheprocedures and substantiveprotections set forth thereinshallbedeemedtobepreemptedandsupersededbytheprovisionsofanysubsequentprovisionoffederalorstatelaw.
B.Inadditiontothe procedures set forthinsaid Section 626(a),theGrantor agrees tonotifyGrantee
O of thecompletion of its assessments regarding theidentification offuture cable-relatedcommunityneedsandinterests,as well as the pastperformance ofGranteeunderthe thencurrent Franchiseterm.Notwithstanding anything to the contrary set forth herein,Grantee and Grantor agree thatatanytimeduringthetermofthethencurrentFranchise,whileaffordingthepublic adequatenoticeandopportunityforcomment,theGrantor and Grantee may agree toundertakeand finalizenegotiationsregardingrenewalofthethencurrentAgreementandtheGrantormaygrantarenewalthereof.Grantee and Grantorconsider thetermsset forth inthisSectiontobe consistentwiththeexpressprovisionsofSection626oftheCableAct.
12.2 Transfer of Ownership or Control:
A.The Cable System and thisAgreement shall not be sold,assigned,transferred,leased,ordisposedof,either in whole or in part,either by involuntary sale or by voluntary sale,merger,consolidation,nor shall titlethereto,either legal or equitable,or any right,interest,or propertythereinpasstoorvestinanyPersonorentity,without thepriorwrittenconsent of the Grantor,which consent shall not be unreasonably withheld.
B.The Grantee shall promptlynotifytheGrantor of anyactualor proposed change in,or transferof,or acquisitionby anyother party ofcontroloftheGrantee.The word "control"as used herein is notlimitedtomajoritystockholdersbutincludesactualworkingcontrolinwhatevermannerexercised.A rebuttable presumption thata transferof controlhas occurred shall arise on the acquisition oraccumulationbyanyPersonorgroupofPersonsoftenpercent(10%)oftheshares orthe generalpartnershipinterestintheGrantee,except thatthissentence shall not apply in thecase of atransfertoanyPersonorgroupalreadyowningatleastatenpercent(10%)interestof thesharesorthegeneralpartnershipinterestintheGrantee.Every change,transferoracquisitionofcontroloftheGranteeshallmakethisFranchisesubjecttocancellationunlessanduntiltheGrantorshallhaveconsentedthereto.
C.The parties to the sale or transfershallmake a writtenrequest tothe Grantor for its approvalofasaleortransferandfurnishallinformationrequiredbylawandtheGrantor.
D.The Grantorshall render a finalwrittendecision on therequest withinone-hundredtwenty(120)days of therequest,providedithas received allrequested information.Subjecttotheforegoing,iftheGrantor failstorender a final decision on the request withinone-hundred twenty(120)days,such request shallbe deemed granted unless the requesting party and the Grantor agree toanextensionoftime.
E.Within thirty(30)days of any transferor sale,if approved or deemed granted by the Grantor,Grantee shall filewiththeGrantor a copy of thedeed,Agreement,lease orotherwritten instrumentevidencingsuchsaleortransferofownershiporcontrol,certified and sworn to as correct byGranteeandthetransferee.
Ordinance #2052
Page 12
F.In reviewing a request for sale or transfer,the Grantor mayinquire into the legal,technicaland
financial qualifications oftheprospectivecontrolling partyortransferee,and Grantee shallassist
the Grantor inso inquiring.The Grantor may condition said sale or transfer upon such termsand
conditionsas itdeems reasonably appropriate,provided,however,anysuch termsand conditions
so attached shall be related tothe legal,technical,and financial qualifications oftheprospective
controlling party or transfereeand to the resolution of outstandingand unresolved issues of
noncompliance with the termsand conditions of thisAgreement by Grantee.
G.The consentorapprovalof theGrantortoanytransferbytheGrantee shall notconstitutea waiver
orrelease of anyrights oftheGrantor,and anytransfershall,by its terms,be expressly subordi-
nate totheterms and conditionsof thisFranchise.
H.Notwithstandin nythingtothecontraryinthisSection,thepriorapproval of theGrantor shallnot
be requiredfo any sale,assignment or transferof the Agreement or Cable System for cable
televisionsys musage toan entitycontrolling,controlledby or under thesame common control
as Grantee pyovided thattheproposed assignee ortransfereemust show financial responsibility
as may be determined necessary by the Grantorand must afgree in writing tocomplywithall
provisions ofthe Agreement.
SECTION13.SEVERABILITY:Ifany Section,subsection,paragraph,termor provisionof thisAgreement
isdetermined tobe illegal,invalidor unconstitutionalby any courtofcompetent jurisdictionor byany state orfederalregulatoryauthorityhavingjurisdictionthereof,such determination shall have noeffectonthe validity
of anyotherSection,subsection,paragraph,termor provisionofthis Agreement,all of whichwillremain in
fullforce and effectfor the termofthe Agreement,
SECTION14.MISCELLANEOUS PROVISIONS:
14.1 Preferential or Discriminatory Practices Prohibited:Grantee shall notdiscriminate in hiring,employ-
mentor promotion onthebasisof race,color,creed,ethnicor national origin,religion,age,sex,sexual
orientation,maritalstatus,or physical or mental disability.Throughout theterm ofthisAgreement,
Grantee shallfullycomply withallequalemploymentornondiscrimination provisions and requirements
of federal,state and local law and,in particular,FCC rules and regulations relating thereto.
14.2 Notices:Throughout the term of the Agreement;Grantee shall maintainand file with Grantor adesignatedlegalorlocaladdressfortheserviceofnoticesbymail.Acopy ofall notices from Grantor
to Grantee shallbe sent,postage prepaid,to such address and such notices shall be effectiveupon
thedate of mailing.Attheeffectivedate of thisAgreement,such addresses shallbe:
Abacus Communications,Inc
Moses Lake,WA 98837
Attn:
AIInoticestobe sent by Grantee toGrantorunder thisAgreement shall be sent,postage prepaid,and
such notices shallbe effective uponthedate of mailing.At theeffectivedate ofthisAgreement,such
address shall be:
CityofMoses LakePODrawer1570MosesLake,WA 98837
14.3 Binding Effect:This Agreement shall be binding upontheparties hereto,theirpermitted successorsandassigns.
14.4 AuthoritytoAmend:ThisAgreement may be amended at anytimeby written agreement between the
parties.
14.5 GoverningLaw:This Agreement shall be governed in all respects by the laws of the State of
Washington.
14.6 Guarantee:The performance oftheGranteeshall be guaranteed inall respects byAbacus Communi-
cations,Inc.The subjoinedguarantee shallbe executed priorto the effective date hereof.
14.7 Captions:The captionsand headings ofthisAgreement are for convenience and referencepurposes
onlyand shall not affectinanywaythemeaningor interpretation of any provisionsofthisAgreement.
14.8 Construction ofAgreement:The provisions of thisAgreement shall be liberallyconstruedtopromote
thepublicinterest.
14.9 Entire Agreement:This Franchise containsallofthe agreements of the partieswithrespect toany
matter covered or mentioned in this Franchise and no prior or contemporaneous agreements or
understandings pertaining toanysuch matters shall be effective for any purpose.No provision ofthis
Franchise maybe amended or added toexcept by agreement inwriting signed by both of the parties.
14.10 Attorney's Fees:Ifany suit or other action is instituted inconnection with anycontroversy arisingunder
thisFranchise,neither party shall be entitledto recover its costs and expenses including attomey's
fees.
14.11 Time Is oftheEssence:Time is ofthe essence of this Franchise and each and allof its proVisionsin
whichpelformance is a factor.
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Mode Recto
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Ordinance #2052Page13
Section3.This ordinance shall takeeffect and be in forcefive (5)days afterits passage and publicationofitssurnmaryasprovidedbylaw.
Adopted by theCityCouncil and signed by its Mayor on February 26,2002.
MayorATTEST:
F ance Director
Cig Attorney
O