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Resolution No. 85-84 CITY OF TI:GARD, OREGON RESOLUTION NO. 85-_LZ` A RESOLUTION ADOPTING A CERTAIN AGREEMENT TO AMEND THE. CABLE COMMUNICATIONS SYSTEM FRANCHISE AGREEMENT BETWEEN THE CITY OF TIGARD AND STORER METRO COMMUNICATIONS, INC. WHEREAS, the City of Tigard is a member of the Metropolitan Area Communications Commission, (hereafter "the Commission"); and WHEREAS, the members of the Commission entered into a certain cable communications system franchise agreement tatween the jurisdictions participating in the Metropolitan Area Communi-ations Commission and Storer Metro Communications, Inc.; and WHEREAS the Commission, based on the recommendation of its Franchise Renegotiation Policy Committee and after conducting public hearings has recommended that certain amendments to the Franchise Agreement should be made to the Franchise Agreement entered into by the member jurisdictions and Storer Metro Communi.cat ions, Inc.; and WHEREAS, the Council has deemed it to be in the furtherance of the public interest and welfare of the citizens of the City of Tigard, Oregon to adopt the amendments to the Franchise Agreement. NOW, THEREFORE, BE IT RESOLVE[[) by the Tigard City Council that: Section 1: The City Council hereby adopts the agreement to amend the cable communications system Franchise Agreement between the member jurisdictions participating in the Metropolitan Area Communications Commission and Storer Metro Communications, Inc., that have beer. developed, approved and forwarded by the Commission to the City. A copy of the Franchise Amendment Agreement is attached hereto, marked Exhibit "A" and by this reFerence incorporated into this resolution as though fully set forth herein. Section 2: The Mayor is authorized to and shall execute and enter into the Franchise Amendment Agreement on behalf of the City of Tigard and the City Recorder shall attest to the Mayor's signature. Following executiLn, the City Recorder shall deliver to the Commission Chairman a true copy of the Resolution and three duplicate originals of the Franchise Amendment Agreement properly executed by the Mayor and attested by the City Recorder. PASSED: This day of1985. or - City of Tigard ATTEST: �P eputy City Recorder - City of Tigard c� RESOLUTION NO. 85--ZK- �w %OJ61BLE COMMUNICATIONS SYSTEM r I Between the Jurisdictions !� Participating in the Metropolitan Area communications comission and Storer Metro communications, Inc. AMENDMENT f 5.:3 AGREEMENT TO AMEND THE CABLE COMMUNICATIONS SYSTEM FRANCHISE AGREEMENT BETWEEN THE JURISDICTIONS PARTICIPATING IN THE METROPOLITAN AREA COMMUNICATIONS COMMISSION AND STORER METRO COMMUNICATIONS INC. I This Franchise Amendment Agreement is entered into this day of , 1985. WHEREAS, the Oregon cities of Banks, Beaverton, Cornelius, Durham, Forest Grove, Hillsboro, Xing City, Lake Oswego, North Plains, Rivergrove, Sherwood, Tigard, Tualatin and Wilsonville, together with Washington County, Oregon, have entered into a cable communications system Franchise Agree- ment with Storer Metro Communications, Inc. which grants to Storer Metro Communications, Inc. a non-exclusive, revoke- able, 15 year franchise to construct, operate and maintain a cable communications system within the collective jurisdic- tional boundaries of the grantors; and WHEREAS, the parties to the Franchise Agreement have agreed to certain amendments to the Franchise Agreement- The parties agree as follows: j s SECTION 1. Public Communications Network E A. Section 4.6 of the Franchise Agreement is amended to read as follows: 4.6 Provision of Institutional Services. Grantee shall provide access to all services on the institutional net- work to all public agencies, public and private educa- tional institutions, hospitals, as well as commercial establishments and major businesses within the initial service area of the franchise area, as such agencies, institutions, hospitals, commercial and major business establishments shall be determined by the Commission. The provision of service to public agencies,.�blic and private educational institutions and hospitals will be Subject to the installation charges and rates specified in Section 7.8. B. Section 6.8 of the Franchise Agreement is amended to ii read as follows: I 6.8 Demonstration Projects. Demonstration projects on the Public Communications Network shall be performed in accordance with a timetable and program established by the ' PAGE 1 - FRANCHISE AMENDMENT AGREEMENT g 1 Commission. C. The following Section 6.9 is added to the Franchise Agreement: f 6.9 Public Communications Network. Grantee's obligations to provide institutional network service to public agencies, public and private educational institutions and to hos- pitals will be accomplished by the utilization of the i separate system referred to in Section 5.5 and hereinafter referred to as the Public Communications Network or Network. Service on the Network shall be subject to the following �- conditions: 1. Any demonstration projects carried out pursuant to Section 6.8 will be funded by the Commission and not by Grantee. Subject to Section 6.10, Grantee may cease operation of the Public Communications Network on or after July 1, 1990. 3. Subject to Section 6.10, Grantee may cease operation of the Pmblic Communications Network on September 31, 1988, if the Commission, in the reasonable exercise of its judgment, finds that Grantee has operated the Network consistent with all terms and conditions of the Franchise Agreement as amended and that Grantee has demonstrated that the revenues derived from the operation of the Net- work are substantially less than the costs of operation and that there is little likelihood that such revenues f will equal or exceed the costs of operation by July 1, 1990. The Commission will, if requested by Grantee, make this determination no later than July 1, 1988. D. The following Section 6.10 is added to the Franchise Agreement. 6.10 Commission Operation Of Public Communications Network. On or after July 1, 1990, after giving the Commission 180 days notice of its intent to do so, Grai,tee may cease operation of the Public Communications Network provided that it offers to give title and control of the Network to the Commission. If the Commission shall, pursuant to Section 6.9(3), determine that Grantee may cease operation of the Public Communications Network on September 31, l.. 1988, Grantee shall also offer to give title and control of the Network to the Commission. The terms and conditions of such offers shall include granting to the Commission full title and control of all Network cable plant, elec- tronics, head-end gear and drops to any public locations �` PAGE 2 - FRANCHISE AMENDMENT AGREEMENT being provided with service along with any accompanying equipment already in place at such locations. In addition, Grantee will guarantee that the Commission or its agents shall have the right to any necessary access to any equip- ment located in any facility owned or operated by the Grantee. Upon receipt of such notice by the Commission, the Commis- sion will determine within 90 days whether it is willing to accept the offer. If the Commission agrees to accept the offer, it shall promptly notify the Grantee in writing of its acceptance and the parties will then take all necessary steps to effectuate an orderly transfer of the Network to the Commission. Pending the full transfer of the Network to the Commission, Grantee shall continue to operate the Network and guarantee continuation of service to all customers in good standing. ` E. The following Section 6.11 is added to the Franchise i Agreement. ` 6.11 Public Communications Network Performance Standards. L. Grantee's operation of the Public Communications Network shall be subject to the following performance standards: 4. 1. The Network will be operated consistent with the tech- ' nical specific-ntions set forth in Section 5.12 of this Agreement. 2. Grantee will provide a +15dbmv(+or- 2dbmv) video reference on pilot carrier 301.25 at the line of demarcation for all (( Network users. 3. Grantee will install, proof and activate cable at any user sites within 60 days of a request for use of the } Network by any public user. i 4. Grantee shall maintain a repair force of technicians ( capable of responding promptly to all requests for service by Network users. 5. Grantee shall provide, at a minimum, service and repair according to the following response times. During normal working hours (Monday - Friday, 8:00 a.m. - 5:30 p.m.), the response shall not exceed 2 hours, except for extra- ordinary circumstances related to Network operations and maintenance. During non-working hours, the response shall not exceed 6 hours. Response shall mean a technician is 1 working on the Network in an effort to correct the service problem. �` PAGE 3 - FRANCHISE AMENDMENT AGREEMENT I: I 6. Grantee will operate the Network with due diligence. 7. Grantee will comply with the Network Management Opera- tion and Maintenance Plan attached as Exhibit A hereto which will govern operation of the Network unless the Commission shall agree to amend or terminate the .Plan. F. The following Section 12.5 is added to the Franchise Agreement. t Section 12.5 Extension Of Term. (a) Within 90 days of July 1, 1988, the Commission shall hold a hearing to determine whether Grantee has complied with all provisions of the Franchise Agreement, as amended, relating to the operation of the Public Communications Network. If the Commission determines that Grantee has complied with all such terms of the Agreement, it shall grant to Grantee a 1 year extension of the term of this Franchise Agreement. (b) If the Grantee operates the Public Communications Network from July 1, 1988 until July 1, 1990, within 90 days of July 1, 1990, the Commission shall hold a hearing to determine whether Grantee has complied with all pro- visions of the Franchise Agreement, as amended, relating to the operation of the Public Communications Network during that period. If the Commission determines that Grantee has complied with all such terms of the Agreement, it shall grant to Grantee a 1 year extension of the term of this Franchise Agreement. G. Existing Section 7.8 of the Franchise Agreement is deleted and a new Section 7,8 is added to read as follows: Section 7.8 Institutional Services. (a) Rates and installation charges for use of the institu- tional system designed for business and industry use as [ described in Section 5,5 shall be established at the sole discretion of the Grantee. (b) The rates fog- use of the institutional system designed for use by government and non-profit users (the Public Communications Network) are established in the attached Appendix 1. These rates may be adjusted annually by Grantee in accordance with the formula set forth in Appendix 1. (c) Installation charges for use of the Public Communi- cations Network by public agencies, public and private PAGE $ - FRANCHISE AMENDMENT AGREEMENT Y t { i ( educational institutions and hospitals will be computed on the following basis: Drops or extensions necessary to provide service will be provided free of charge by Grantee up to a dis- tance of 300 feet. The user and Grantee will share the cost on a 50/50 basis for an additional 300 feet. The cost of any construction necessary beyond 600 feet will be the responsibility of the Public Commun- ications Network user. The amount of cable construction as measured in feet which is the basis for the cost sharing formula will be computed as follows: Start at a point on the property of the public insti- tution adjacent to the public right-oz-way nearest to the point where there a cable television plant capable of being tapped for service and which is nearest to the' point of entry into the facility. The actual length of cable needed to extend from the starting point to the line of demarcation within the facility shall be the total number of feet. The cost of the project from the starting point to the line of demar- cation shall be divided by the total number of feet. A- The resultant cost per foot shall be used to compute each party's share. H. The following paragraph is to be added to the end of the existing provisions of Section 9.1 of the Franchise Agreement. d. Alternative Means To Repay Advancement Of Franchise ' Fees. Grantee has advanced to Grantors a total of $193,000.00 in franchise fee payments as of July 1, 1985. Notwithstanding the provisions of paragraph 9.2(c) pro- viding for a credit for such advance payments Grantee shall continue to pay the full five percent (5%) franchise fee each quarter until July 1, 1990. If Grantee operates the Public Communications Network until July 1, 1990 and if Grantors have expended less than $193,000.00 for demonstration projects pursuant to Section 6.8 and 6.9(1) or for the items listed in attached Exhibit B, then Grantee shall, commencing with the first franchise fee payment due after July 1, 1990, be entitled to commence to credit toward its franchise fee payments, pursuant to paragraph 9.1(c) above, the difference between $193,000.00 and the amount actually expended. If, however, Grantee shall cease operation of the Network prior to July 1, 1990 for any reason whatsoever or if Grantors shall have expended PAGE 5 - FRANCHISE AMENDMENT AGREEMENT an amount equal to or greater than $193,000.00 for the C purposes set forth above, then Grantee shall not be entitled to any credit against the franchise fee otherwise due and payable and Grantee shall c,ntinue to pay the full. five percent (58) franchise fee. 1. The following Section 2.32(a) is added to the Franchise Agreement. 2.32(a) Line of Demarcation. The point where Grantee terminates a cable drop either on the Public Communica- tions Network or the Residential Subscriber Network. The point shall be designated by the subscriber and shall be limited to a single point. k SECTION II. Interactive Residential Services A. Section 5.4 of the Franchise Agreement is amended to read as follows: 5.4 Capacity and Capability for Interactive Residential f Services. Grantee agrees to and shall provide, in the intitial system configuration, the capacity and capability for interactive residential services including, but not limited to, security alarm (including intrusion and fire alarm) monitoring, home shopping, energy management, home banking, teletext, information access and retrieval, sub- scriber polling, video games and one-way or interactive education. All customer equipment necessary for such services, such as addressable interactive converters, home terminals and home detectors, shall be provided to sub- scribers by Grantee in accordance with established and uniform rate schedules. E Return modules will be placed, installed, tested and made { operational in all residential network amplifiers and trunk extenders by September 1, 1987. B. Existing Secton 6.4 of the Franchise Agreement is deleted and a new Section 6.4 is added to read as follows ! 6.4 Interactive Residential Services. i. (a) Grantee will introduce, market and operate on the Residential Service Network any interactive service at the time the Commission and Grantee jointly determine it is operating profitably on 20% of the interactive capable cable television systems in the United States. To deter- mine if the service is being provided profitably, the Commission and Grantee will survey to determine that the interactive cable service is being provided voluntarily PAGE 6 - FRANCHISE A IENDMENT AGREEMENT .y and is an ongoing service. If a third party is necessary I( to provide an interactive service and Grantee in good ` faith is unable to secure the third party, the Commission shall waive this requirement per Section 4.7. (b) Grantee will report to the Commission at its first meeting after July 1st each year on its efforts to develop interactive services and their financial viability. (c) Upon introduction of an interactive service, the service will be available to all areas of the franchise territory. Experiments and demonstrations may take place in areas smaller than the entire franchise territory. SECTION SII. Construction A. Section 4.5 of the Franchise Agreement is amended to read as follows: 1 4.5 Provisions of Residential Service. Subject to the provisions of Section 7 herein concerning rates and charges. Grantee shall provide all residential services to all residents within the initial service area of the franchise area at uniform installation charges and monthly rates and within the schedules of Section 4.2, above. New residents F in active cable areas shall be offered service within L ._ sixty (60) days after request for service. The following exceptions shall apply: (1) Isolated Homes. A_ For dwelling units either within or outside of the initial service area, where the number of homes per mile is less than 35, Grantee shall have no obligat'eon to pro- vide service necessitating more than a line xtension or drop of 200 feet as measured from the end o£ the existing !_ cable plant, unless the person requesting service con- tractually agrees to pay construction costs based on the ! following formula: (1) Grantee: shall provide service at its standard instal- lation charge if no more than 200 feet of construction is required. (2) Grantee and the subscriber shall share equally the acutal cost of the'extension for the distance over 200 feet but less than 500 feet. (3) The subscriber shall pay all costs for construction j greater than 50G feet. PAGE 7 - FRANCHISE AMENDMENT AGREEMENT 6 f. (4) Theamount of cable construction as measured in feet, which is the basis for the cost sharia wi.l.i be computed as fellows: i Start at a 'Point at the nearest existin cable plant ( exclusive of a street crossin . The actual len th of cable needed from the starting point to the Subscri- ber`s home shall be the total number of feet. The f cost of the ro*ect from the starting E2oxnt to the f home shall be divided by rae total number of feet The resultant cost per foot shall be used to compute each Qarty's share. Street bores or crossings needed to ring the existing cable plant to the requesting subscribers side of the street shall not be included }( as part of the extension. (2) New Subdivisions. A. Grantee will be required to build activate proof and sell cable in new subdivisions within sixt (60) days of the time when 50% of the subdivision's otent5.al dwellin units have been issued buildin ermits, or 25$ o£ the Subdivisions' potential dwelling units have contracted for cable television service. B. If aslant extension as measured from the end of the existing cable plant exceeds 200 feet times the number of planned dwelling units in the new subdivision to reach the beginning of the new subdivision, Grantee may consider the uew subdivision as isolated homes and condition service on subscribers compliance with Subsection 4 5(1) above C. The Commission, as a franchise obli anon, will notif ! all member jurisdictions to add Grantee to the'r 11 ns so Grantee bill be notified of Grantee considerations of new subdivisions. D. Where jurisdictional approval of a subdivision includes rove ion for the construction of separate phases of the t subdivision each phase will be considered a separate sub division for the purpose of this section B. A new subsection 11.6(e) is added to Section 11.6 Landlord - Tenant of the Franchise Agreement to read as hollows: (e) However, Grantee shall have no obli anon toe service it the cost of installation exceeds i5G er unit*. To determine unit costs, the total ro'ect cost is divided by the number of units. The total project cost shall PAGE E - FRANCHISE AMENDMENT AGREEMENT Ec: include onl the costs of cable installed on the ro e:rt an' cludinq ine extension an yre post waring o the units. *Cost is expressed in 1985 dollars. This figure steal 1 be adiusted each year on Jul 1 to reflect the annual change in the Consumer Pric Index for the Portland Metropolitan Region. SECTION IV. Service to Public Institutions. A. Section 7.3 of the Franchise Agreement is amended to read as follows: 7.3 Basic Service - A artment, Commercial and Public Facilities. The initial rates and charges for basic service within the initial service area to apartments, commercial organizations and public facilities shall not exceed the following: installation Monthly Apartments - Bulk Rate Charge Rate First Outlet Cost Same as residential rate 2 - 10 Outlets Cost 10% discount from residential rate 11 - 20 Outlets Cost 15% discount from residential rate 21 - 30 Outlets Cost 20% discount from residential rate More than 30 Outlets Cost 25% discount from residential rate To qualify for bulk rates, the apartments must have one hundred percent (100€) subscription and a single billing address. installation Monthly Commercial - All Tiers Charge Rate First Outlet Cost Same as resi3ential rate 2 - 10 Outlets Cost 108 d iscount from residential rate t PAGE 9 FRANCHISE AMENDMENT AGREEMENT L 1 11 - 20 Outlets Cost 15% discount from 21 30 Outlets residential rate _ - Cost 20% discount from More than 30 Outlets residential rate Cost 258 discount from Taxresidential rate 5tt orted ar9d Hen-Prefrt �net�tatfons ! T-nat.t}}atsoa Menthip Ehe Re Rete r First ®tat�ct No eherge No Ehsrge Adelitione� Etsttets No Eharge No eharge � Seeurztp Sop�iee No EP►srge No eharge Tax Su orted and Non-Profit Institutions - Ail Tiers Monthly Rate First outlet Same as residential j 2 - 10 Outlets rate 10% discount from 11 20 outlets residential rate - 15% discount from 21 30 Outlets residential rate t. - 20% discount from residential rate 1 More than 30 Outlets 25% discount from residential rate Installation char es for tax su or ted and non- rofit institutions shall be in accordanne with 3 the fo,lowin fcrmular Dro s or extensions necessar to be at Grantee°s er, ense for rovide service will user and Grantee willshare the cost ton0a 50e50 basis +{ for an additional 300 feet. The cost of an construe- tion necessar be orad 600 feet wi�l be the r bi3ity of the user es onsi- 2he amount of cable constructi is the basis for on as measures? in feet whisk,the cost stearin as fo_ ids_ formula will be computed PAGE 10 - FRANCHISE AMENDMENT AGREEMENT Start at a point on the property of the public insti-_ tution adjacent to the public right-of-way nearest to the point where there is cable television plant capable of bein to ed for service and which is nearest to the point of entry into the facility. The actual length of cable needed to extend from the starting point to line of demarcation wrthrn the facility shall be the total number of feet. The cost o= the proiect from the starting T�oint to the line of demar- cation shall be divided b the total number of feet. The resultant cost per foot shall be used to compute each party's share. SECTION V. Emergency Alert Section 5.8 of the Franchise Agreement 9.s amended to read as follows: 5.8 Emergency Alert Capability. Grantee shall provide the system capability for the Commission to transmit an emergency alert signal from locations designated by the Commission to all participating subscribers. Grantee shall also provide an emergency audio override capability to permit the Commission or, within its jurisdiction, an _ individual Grantor to ii,terrupt programming and cablecast from locations desiqnated by each Grantor an audio message on all channels simultaneously in the event of disaster or public emerge:cy. Grantee may satisfy this obligation by installing and maintainin a Scientific Atlanta Communications Alert Sy stem. 1:3y 90 days after the effective date of the amend- ment agreement Grantee shall operate and make available the emergency alert capability of this system in accord- ance with an operational plan to be developed by Grantee and localpublic safety departments subject to the appro- val of the Commission. I SECTION VI. Status Monitoring t A. Section 5.11 of the Franchise Agreement is amended to read as follows: S.I1 Status Monitorir_g. Grantee shall provide an auto- matic status monitoring system as an integral part of both the residential and the institutional cable networks in the event the Commisson re wires it to do so. The Com- mission may require Grantee to install such a system if within 90 days after ,July 1, 198II July 1, 19912July 1, 1994 and July 1, 1 .. 997 if the Franhrse Agreement term as PAGE 11 - FRANcHISE AMENDMENT AGREEMENT extended, it determines that Granteee has failed to meet the quality of service and consumer protection requare- ments of this agreement as amended. SECTION VII. Modifications for Videotext A. Section 5.15 System Modification for Videotext Receipt is hereby deleted from the Franchise Agreement. SECTION VIII. Quality of Service A. A new Section 8.7 Consumer ProtectionStandards and Penalty Guidelines is hereby added to the Franchise Agree- ment to read as follows: 8.7 Consumer Protection Standards and Penalty Guidelines a. Telephone Answering 1. Standard ofPerformance. The Franchise Agreement provides in Section 13.4(0): The Grantee shall maintain an office in the franchise territory which shall be open during all usual business hours, have a publicly listed toll-free telephone, and be so operated to receive subscriber complaints and requests for repairs or adjustments on a 24-hour basis. A written log shall be maintained listing all complaints and their disposition. Incoming calls shall be answered within three minutes 90% of the time during any one hour time period. "Answered" means that a caller speaks to an employee of the Grantee. Grantee will meet or exceed the 90% standard in meeting the telephone answering requirements of Section 13.4(x) of the Franchise Agreement. The test for compliance will be whether an open incoming telephone line is available 90% of the time during any one hour and whether calls are picked up by an employee within three minutes. 2. Monitoring Procedures. Commission staff will monitor consumer complaints it receives and will peri- odically check the availability of open telephone lines. The Commission will request, pursuant to Section 13.3(e) , reports from Frantee on telephone utilization_ 3. Penalty Standards. The Commission shall impose penalties for violation of the telephone answering stand- ards, except in cases where the system has suffered an outage or other disruption affecting trunks or distri- PAGE 12 - FRANCHISE A24ENDMENT AGREEMENT a (' bution feeders or some occurance has caused similar service related problems to a camber of subscribers. The Commission may at its discretion, waive or reduce penalties if timely and appropriate corrective action is taken. The following are guidelines for the Commission in setting penalties. The dollar amounts set forth are intended as guidelines for the maximum amount to be imposed absent egregious circumstances or changes in the value of the dollar based on inflation. If the 90% standard is not met during one or more one hour periods during a single day, a single violation will be deemed to have occurred. (A) One violation to nine violations in any one month. ( PENALTY: $50.00 per violation. €' (B) Ten or more violations in any one month. PENALTY: $100 per violation for all violations t during the month. (C) Violations as specified in (1) or (2) continue over a two month period and notification had ( f been given of the first month's violation. PENALTY: Double Monetary Fines. (D) Violations as specified in (1) or (2) continue over a three month period and notification had been given of violations in months one and two. PENALTY: Triple Monetary Fines. i (E) Violations as specified in (1) or (2) continue for a period of four or more months and notifi- cation had been given of violations in months one, two and three. PENALTY: Triple Monetary Fines Consider Franchise Revocation i (b) Customer Service Response 1. Performance Standards. The Franchise Agreement I1 states in Section 13.4(c) : "The Grantee shall maintain a repair force of tech- nicians capable of responding to subscriber complaints (L; PAGE. 13 - FRANCHISE AMENDMENT AGREEMENT or requests for service within 24-hours after receipt of the complaint or inquiry. No charges shall be ( made to the subscriber for this service." 1. Grantee shall respond to a complaint or request for ( service within 24-hours of a request. For a subscriber with a construction or technical problem, a response means a Grantee representative will correct or attempt to correct the problec. within 24-hours of a request. The Commission shall apply this standard to all requests for repairs or correction of technical problems. Requests for added-or changed services packages, such as add or drop channels, additional outlets, etc. , are not subject to this 24-hour response time. A subscriber can voluntarily elect to extend the response time requirement beyond 24-hours. �- 2. Monitoring Procedures. The Trouble Call reports provided to the Commission pursuant to Section 13.3(a) shall be used to monitor this standard. Grantee shall indicate on the Trouble Call report those subscribers requesting service who voluntarily elect to extend the response time requirement beyond 24-hours. The Commission will review all reports. �. 3. Penalty Standards. The following are guidelines for the Commission in setting penalties. The dollar amounts set forth are in- tended as guidelines for the maximum amount_ to be imposed absent eregious circumstances or changes in the value of `- the dollar based on inflation. (A) If the 58 or greater, but less than 108 of the monthly requests for service exceed the 24-hour requirement. PENALTY: $10.00 per violation. (B) If 108 or greater, but less than 158 of the monthly requests for service exceed the 24-hour requirement. I PENALTY: $20.00 per violation. (C) If 158 or greater of the monthly requests for service exceed the 24-hour requirement. PENALTY: $30.00 per violation. PAGE 14 - FRANCHISE AMENDMENT AGREEMENT L (D) In computing compliance or violation of these standards the following mathematical formulas will be used. (a) T2 = 5% Tl This determines if the 5% threshold is exceeded. If it is, penalties are computed by Formula (b). [ (b) (T2 - T3) X P = $ r" T1 = Total service calls per month. ¢=; T2 = Total service calls per month in excess L of 24-hour responsF requirement. FT3 = 5% of total service calls per month. P = Dollar penalty for penalties (A), (E) and (C) above. The dollar penalty is determined based upon the quotient in Formula (a). i (c) Technical Specifications (1) Performance Standards. The Commission will monitor f system performance in order to insure subscribers receive i! good quality television reception. The Franchise Agreement in Section 5.12 contains specific standards for technical quality. (2) Monitoring Procedures. The Commission will follow the provisions of Section 5.13 to test to determine if tech- nical standards are being met. The Commission will use Grantee's performance tests or independent tests authorized by the Commission. If the operating standards do not meet the required technical specifications, the Commission shall provide Grantee with an opportunity to correct the problem. j. The Commission will notify Grantee of the noncompliance. Grantee will have 7 days to correct the problem and prove to the Commission the problem is corrected. If corrective action and proof of it .are not made within 7 days of Grantee receiving the notification, the Commission may enact penalties. (3) Penalty Standards. Monetary penalties shall be applied bayed upon the degree and prevalence of the deviation. Penal- ties shall increase in amount for continued violations. The Commission may also consider rebates or payments to subscri- bers. ti .: PAGE 15 - FRANCHISE AMENDMENT AGREEMENT ff L I { (d) Subscriber Hook-ups. (1) Performance Standards. Section 4.2(a) of the Fran- chise Agreement states in pertinant part "Service shall be offered to any requesting subscriber no later than 60 days from the date of request following the energizing or acti- vation of the system within any specific areas." This time period shall be the standard for all subscriber hook-ups with the additional conditions as provided in Section 4.5 as amended also applicable as provided for therein. (2) Monitoring Procedures. The Commission will monitor and investigate reports of violation of this standard. A request will be deemed made on the date of signing of a service agreement, receipt of funds by the company, mailing of a written request, or on the date of a verified oral request. (3) Penalty Standard. The penalty shall be up to $100.00 per day for every day over 60 days until the installation is completed, or the cost of installation, whichever is more. Upon notification to Grantee that the install was not made j within the required time frame, the Commission may, of its own accord, have the installation made. The penalty in this situtation shall equal the cost of the installation plus any s` administrative expenses. s._ _ B. Section 5.12 of the Franchise Agreement is amended to read as follows: e 5.32 Technical Standards. The Federal Communications Comamission FCC Rules and Regulations, Part 76, Subpart K (Technical Standards), as now or hereafter constituted, shall apply. However, because of the recent development f of interactive and other innovative services, modifica- tions of FCC standards, as presented in the specifications below, are considered as necessary to meet system service objectives. f Applicable Technical Standards (1) Resdiential Network, Forward Signals - Class I Channels. The residential network shall be capable of carry- ing 60 Class I television channels and the full FM broadcast band. The combined forward trunk and distribution system shall deliver signals to each subscriber's television receiver that will meet or exceed the following specifications at the mean system temperature +70 degrees F on each and ever` video channel. This shall include the effects of drop cables, interior splits, and any terminal equipment such as descram- blers and set-top converters. PAGE 16 - FRANCHISE AMENDMENT AGREEMENT "Munie ------ 70 i A. Peak to valley, 54-440 MHz 4 dB B. Peak to valley, 6 MHz 0.5 dB C. Carrier to Noise 44 dB D. Cross Modulation 57 dB E. Carrier to Hum 45 d8 F. Carrier to Composite Triple Beat 55 dB G. Carrier to Triple Beat 76 dB H. Carrier to Second Older 68 dB 3. Chroma/Luminance Delay +150 ns ,a. Carrier to Echo per mertz curve R. Differential Gain. 0.5 dB 9 L. Differential Phase 1.0 M. Subscriber Level +8.0 dBnV N. Adjacent channel Level Differential 2 O dB , 6 second 0. FM Levels Ciaanan.c+. P. Subscriber Isolation 30 dB (2) Residential and Institutional Networks, Reverse Signals. The reverse channels of both the residential and institutional networks shall have the capability of providing return signals from any subscriber tap to the extreme end of any area of the system which is intended to receive the return signals without noticeable signal degradation or interference. A. The system capability shall include transmission of audio, color video, black and white video, and both low and high zpeed data, whether analog or digital. B. If necessary to prevent the build-up of noise and distortion products, the area shall be divided into -- sections, and subtrunks run to a central hub within the areae. Equivalent alternatives such as address- able taps or switches may be utilized. PAGE 17 FRANCHISE AMENDMENT AGREEMENT ? C. No more than +54 dBmV output level shall be required out of any customer modem to meet the system specifi- cations. -- D. where applicable, the end of the system specifications shall include the effects of any signal reprocessing equipment necessary to achieve forward transmission. E_ For all video signals originating within the system, the signal delivered to the subscriber's television receiver, after being transmitted to the headend, processed and retransmitted down a forward channel, shall meet the specifications of (1) above. SECTION IX. Program Line-Up Changes A. Section 6.1 of the Franchise Agreement is amended to read as follows: 6.1 Initial Services and Programming. Grantee shall provide, as a minimum, the initial services and pro- gramming listed in this Section. If any listed service shall become una--railable, or cannot be provided under existing FCC regulations, Grantee shall provide substi- tute programming considered by the Commission to be at least as attractive to cable system subscribers. Grantee K_ shall not reduce the number of program services without prior written notification co and approval by Grantors. Grantee may add new services at any thele, subject to t_ Grantor approval of any new rates or rate increase neces- sitated by the added services. Grantee may combine programming into composite channels to improve efficiency of channel utilization or to attact a larger viawing audience. In enforcing this Section, the Commission shall limit itself to reviewing changes in the programming provided by Grantee to determine whether the mix, duality, and level of ! sfarvices originally provided will b= maintained after any t modif ication unless the Grantee requests and the Commission agrees that a variance from the original, mix, duality or level of service is appropriate. SECTION X. Cable Act .A. A new Section 14.12 is added to the Franchise Agree- ment as follows: Section 14.12 Effect of Amendments. The parties recog- nize that they have conflicting opinions regarding the effect of the adoption of The Cable Communications Policy Ii PAGE 18 - Fa"2P.NCHISE AMENDMENT AGREEMENT i'' Act of 1984 on the original provisions of the Franchise Agreement. In addition, Grantee has requested and Gran- tors have agreed to relieve Grantee of certain obligations which are clearly enforceable by Grantor under the Act. Grantor would not have done so if it did not have Grantee's assurances that it would abide by the entire terms of - the amending agreement. The parties intend and believe that all of the provi- sions hereof are consistent with and permitted by The Cable Communications Policy Act of 1984. Grantor would not have entered into this Franchise Amendment Agreement but for Grantee's representation that the following provisions would not be subject to challenge: (1) the provisions for setting rates and installation charges for users of the Public Com- munications Network; (2) that any extensions of the term of the franchise do not constitute renewal of the franchise under said Act; (3) that the time value of money is fully accounted for in the method agreed to for crediting repay- ment of advances on franchise fees; (4) that there need be no compensation paid to Grantee if the Public Communications Network is accepted by the Commission; and (5) that the provisions of Section 8-7 Consumer Protection Standards and Penalty Guidelines are enforceable. The parties agree that they are estopped from challenging in any judicial proceeding < the validity or enforceability of the specific provisions of the Franchise Amendment Agreement set forth in the preceeding sentence based on the terms of the Act as it is written on the effective date of the Franchise -Imendment Aareement. The parties recognize that amendments to the Act or t further action of Federal or State regulatory or .judicial authorities may occur_ As to the five enumerated items, the parties intend that the existing provisions of Section 14.6, 14.7 and 14.8 of the Franchise Agreement and Section 625 of the Act shall control in the event of changes in circumstances i other than judicial interpretations of the existing provisions of the Act that adversely impact the Grantee's performance. SECTION Y.I. This Franchise Amendment Agreement is executed in trip- licate original by Grantor, Grantee and Parent Corporation. ' Execution hereof by the below-signed officers of Grantee and Parent Corporation is in accordance with an appropriate corporate resolution. The timely filing of a copy of the {. corporate resolution and one fully executed original of the Franchise Agreement with the below subscribed Grantor in accordance with Section 3.7 of the Franchise Agreement, shall constitute formal written acceptance. This Franchise PAGE 19 - FRANCHISE AMENDMENT AGREEMENT I 1 Amendment Agreement shall be null and void unless agreed to (- by all fifteen member jurisdictions of the Metropolitan Area ] Communications Commission. This Amendment Agreement shall take effect on the day following the execution of this Agree- ment by the fifteenth member jurisdiction of the Commission I to do so. Subr-cribed, executed and entered into by Grantor, this day of , 1985. C— cr cue Grantor t By Title: Attest: Title: Approved as to form: Title: Subscribed, executed and entered into by Storer Metro Communications, Inc. , Grantee, this day of , 1985. Storer Metro Communications, Inc. By i Title Subscribed, executed and entered into by Storer Communications, Inc. , the Parent Corporation to Grantee, this day of 1985. 1 Storer Communications, Inc. t By _ ( Title: PAGE 20 - FRANCHISE AMENDMENT AGREEMENT APPENDIX 1 Public Communications Network Rates for Government and Non-Porfit Users The rates for use of the institutional system designed for use by government and non-proft users (Public Communications Network) shall be as follows effective July 1, 1986. Low-speed data or single-line voice circuit--assume 25kHz $ 40.00 per month *high-speed data --e.g. 56 kbps--assume 150 kHz usage $200.00 per month T-1 service (1.544 mbps)--assume 750 kHz usage $325.00 per month Packet-switched interactive network service--Sytek hardware $ 40.00 per month per device Video--per site, one-way video delivery from Storer TVRO $ 50.00 for first hour, $ 35.00 per each add'1 hour ,? Video--per site, two-way, originating outside Storer headend $ 75.00 for first hour, $ 35.00 per each add'1 hour ZiZ Bulk ratfi"s may be negotiated to reduce the monthly charges listed above. These rates may be adjusted according to the following: The adjustment in rates will not exceed the annual percentage increase in the Consumer Price Index. Rates will be continually reviewed to assure they are com- petitive. Adjustments made above the increase in the Consumer i Price Index may only take place with the mutual consent of Grantee end the Commission. These rates and the criteria for adjusting these rates will I be in effect for the time period referred to in Section 6.9 (2) 4i and Section 6.9(3) . yt. 1-: 1 EXHIBIT "A" Network Operation and Maintenance Plan Public Communications Network The following outlines the Grantee's and the Commission's responsibilities in the operation and maintenance of the Public Communications Network. Activity Responsibility Frequency Management Commission User Premise Equipment Specifications Commission r' Finances Grantee E.^ Setting Rates Grantee F Planning Commission j, Marketing Commission User Application Commission It User Installation and PCN Design Grantee Mainline Maintenance Grantee 13eader.d Equipment and Maintenance Grantee I - i lei,4 EXHIBIT "B" CCommission's Extraordinary Expense It- Incurred During Renegotiations [= Professional Services rr Legal Fees - Not To Exceed $20,000.00 1. Consulting Fees - Not To Exceed $ 6,000.00 F. E'. F L { 2t'