CHAPTER 8 CABLE TELEVISION 8-1-1 PURPOSE. The City finds that the continued development of cable communication has the potential of having great benefit and impact upon the citizens of the City, because of the complex and rapidly changing technology associated with cable communications, the City further finds that the public convenience, safety and general welfare can best be served by establishing and maintaining regulatory powers which should be vested in the City or such City officials as the City shall designate. It is the intent of this Chapter and subsequent amendments to provide for and specify the means to attain the best possible public interest and public purpose in these matters. Further, it is recognized that cable communications systems have the capacity to provide not only entertainment and information services to the County’s residents, but can provide additional services. For these purposes, the following goals underlie the provisions contained herein: (A) Where economically reasonable, Cable Television and Cable Internet Services should be made available to all City residents. (B) The system should be capable of accommodating both the present and reasonably foreseeable future cable television needs of the citizens of the City. (C) At any time reference to Cable Television Services or System is mentioned throughout this Chapter, the description shall include Cable Internet System or Service as well as Cable Television System or Service. 8-1-2 DEFINITIONS. Unless otherwise specifically provided, or unless clearly required by the context, the words and phrases defined in this Section shall have the following meanings when used in this Chapter: Ancillary Service(s) shall mean any other signals transmitted on the system which the Company offers for consumption by the subscribers. The Company shall have the right to sell the ancillary service(s) at a monthly charge which is in addition to the charge for Basic Cable Service. Basic Cable Service shall mean the primary service transmitted on the cable system and shall include but not necessarily be limited to those signals from any FCC licensed television station, the wire service of one national news service, and local weather information as supplied by local weather sensors and/or the National Oceanic and Atmospheric Administration. Cable Act shall mean The Cable Communications Policy Act of 1984, as amended, 47 U.S.C. § 521 et seq. Cable Internet shall mean the provision of internet reception, communications and/or entertainment services for direct or indirect compensation, or as otherwise provided by this Chapter, and distributing the same over a Cable Internet System. Cable Internet System shall mean a facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Internet Service to multiple subscribers within a community, not including a facility or combination of facilities that serves only to retransmit the internet signals of one or more internet locations; or a facility or combination of facilities that serves only subscribers in one or more multiple unit dwellings under common ownership, control or management, unless such facility or facilities use any public right-of-way or public utility easement. Cable Television Service shall mean the provision of television reception, communications and/or entertainment services for direct or indirect compensation, or as otherwise provided by this Chapter, and distributing the same over a Cable Television System. Cable Television System shall mean a facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Television Service to multiple subscribers within a community, not including a facility or combination of facilities that serves only to retransmit the television signals of one or more television broadcast stations; or a facility or combination of facilities that serves only subscribers in one or more multiple unit dwellings under common ownership, control or management, unless such facility or facilities use any public right-of-way or public utility easement. Channel shall mean a portion of the electro-magnetic frequency spectrum (or any other means of transmission, including but not limited to optical fibers; which is capable of carrying the equivalent of one (1) six megahertz television broadcast signal and includes uses of all or any portion of such band of frequencies. City is the City of Carrollton in the State of Illinois. City Council shall be the City Council of the City of Carrollton, State of Illinois. Commercial Subscriber shall mean all subscribers not defined as either residential or non-commercial. Company is the grantee of rights under this Chapter awarding a franchise and is known as Greene County Cable. FCC shall mean the Federal Communications Commission. Franchise shall mean the nonexclusive rights granted pursuant to this Chapter to construct, operate, and maintain a Cable Television System along the public rights- of-way within all of the City. Any such authorization, in whatever form granted, shall not mean or include any license or permit required for the privilege of transacting and carrying on a business within the City of required by other ordinances and laws of the City. Franchise Agreement shall mean a contract entered into between the City and the Grantee pursuant to this Chapter, containing additional provisions of the Franchise granted. Grantee shall mean the person, partnership, firm, or corporation to whom a Franchise, as herein defined, is granted by the City Council under this Chapter and the lawful successor, transferee or assignee of said person, firm, or corporation. Gross Revenues shall mean the following types of revenue received by a Grantee directly from the operations of a Cable Television System and Cable Internet System in the City, regular subscriber service fees, per channel pay services, leased channel revenues, converter and remote control rental revenues, and Cable Internet Services. Non-Commercial means any public, educational or governmental institution. Person is any individual, firm, partnership, association, corporation, or organization of any kind. Residential Subscriber means a subscriber who receives Cable Television Service or Cable Internet Service in a single family home or in an individual dwelling unit of a multiple dwelling, where the service is not to be utilized in connection with a business trade or profession. Service Area means the geographical area within the incorporated limits of the City as not exist or hereafter are expanded. Streets shall mean the surface of and the space above and below any publicly owned or maintained property or right-of-way, street, road, highway, freeway, land, path, alley, court, sidewalk, parkway, or drive, now or hereafter existing in the City. Subscriber means any person or entity lawfully receiving any portion of the Cable Television or Cable Internet Service of a Grantee pursuant to this Chapter. System shall mean the entire cable distribution installation located in the City of Carrollton. 8-1-3 APPLICATION FEE. (A) Applicants for a new Franchise hereunder shall pay an application fee to the City of Two Thousand Five Hundred Dollars ($2,500.00) which sum shall be due and payable to the City upon submission to the City of an application for a Franchise or as soon thereafter as demanded by the City Clerk or Collector of the City. The application fee shall be nonrefundable. (B) Concurrently with the filing of the written acceptance, the Grantee shall file with the City Clerk the bond and insurance certificate required by this Chapter. 8-1-4 ACCEPTANCE; EFFECTIVE DATE. The effective date of the Franchise shall be the first (1st) day of the first (1st) month next following the date on which the Grantee files the acceptance, bond and insurance certificate as required herein; provided, however, if any of the material required to be filed with the acceptance or the acceptance itself is defective or fails to meet with approval, the Franchise shall not be effective until such defect is cured, or such approval is obtained. 8-1-5 TERM OF FRANCHISE. The duration of a Franchise granted pursuant to this Chapter shall not be more than ten (10) years from the effective date, but may be re-negotiated by either party upon request after a term of three (3) years. 8-1-6 REVOCATION OF FRANCHISE AND OTHER PENALTIES. (A) Subject to the provisions of this Section, City reserves the right to revoke, at any time, any Franchise granted hereunder and rescind all rights and privileges associated therewith in the event that: (1) Grantee has not substantially complied with a material provision of this Chapter, the Franchise Agreement, or any supplemental written agreement entered into by and between the City and the Grantee; or (2) Grantee has made a material false statement in the application for the Franchise, knowing it to be false, or Grantee commits a fraud in its conduct or relations under the Franchise with the City; or (3) Grantee becomes insolvent, enters into receivership or liquidation, files for bankruptcy or assignment for benefit of creditors, is unable to pay its debts as they mature, unless the Grantee is in due process of contesting such debts, or (4) Grantee fails to comply with any final federal or state judgment arising directly from the exercise of Grantee’s rights under its Franchise; or (5) Grantee fails to provide or maintain in full force and effect the bond and insurance policies required by this Chapter; or (6) Grantee assigns, sells or transfers its title or interest in its Franchise without the consent of the City Council. (B) In the event that the City shall make a preliminary decision to revoke a Franchise granted hereunder, it shall give the Grantee a minimum of sixty (60) days written notice of its intention to terminate and stipulate the cause. A public hearing shall be scheduled for the end of said sixty (60) day period. If during said period, the cause shall be cured to the satisfaction of the City, the City shall declare the notice to be null and void. If the cause is not cured to the satisfaction of the City, before a Franchise may be terminated, the Grantee must be provided with an opportunity to be heard before the City Council in a public hearing in accordance with due process procedures. After the public hearing in accordance with due process procedures. After the public hearing, if the City determines that the Franchise should be terminated, it shall issue a written decision containing its findings of fact and stating the specific grounds for termination. The decision to terminate a Franchise shall be subject to judicial review as provided by law. (C) A Grantee shall not be declared in default or be subject to any sanction under any provision of this Chapter in any case where the action justifying such sanction is without the Grantee’s knowledge or authorization or outside its control. 8-1-7 TRANSFER OF CABLE TELEVISION SYSTEM. (A) No transfer of control of the Cable Television System other than a pro forma transfer to a parent or a wholly owned subsidiary corporation, or to a partnership with the same general partner as Grantee, or hypothecation as the result of a commercial loan shall take place, whether by force or voluntary sale, lease, assignment, foreclosure, attachment, merger, or any other form of disposition, without prior notice to and approval by the City Council, which approval shall not be unreasonably withheld. The notice shall include full identifying particulars of the proposed transaction. For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, the City may inquire into the qualification of the prospective controlling party and the Grantee shall assist the City in any such inquiry. The City shall have ninety (90) days within which to approve or disapprove, by resolution, the proposed transfer of control. If the City fails to act within said ninety (90) day period, the application to transfer control or assign the Franchise shall be deemed to be granted. (B) Approval of such transfer shall be expressly conditioned upon full compliance with the material terms of the Franchise and this Chapter. The transferee shall agree in writing to comply with all provisions of this Chapter and the Franchise agreement. (C) For the purpose of this Section, the term “control” is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person or group of affiliated persons of twenty-five percent (25%) of the voting shares of the Grantee. (D) Transferees shall pay to the City a transfer fee in the sum of Two Hundred Fifty Dollars ($250.00) upon submission of notice herein, to offset City’s costs and administrative expenses associated with the City’s review, investigation and adoption of appropriate action. 8-1-8 AUTHORITY GRANTED BY THE FRANCHISE. (A) The Grantee of any Franchise granted pursuant to the provisions of this Chapter shall, subject to the conditions and restrictions set out in this Chapter, be authorized to construct or have constructed, operate, and maintain a Cable Television System, and to engage in the business of providing Cable Television Service in the City as defined herein and in the Franchise and for that purpose to erect, install, construct, repair, replace, reconstruct and maintain such poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the Cable Television System; provided, however, that before any pole, wire, or other thing mentioned above which is necessary and appurtenant to the Cable Television System is placed on or within any street, the required permits to do so must be obtained by the Grantee from the City; and, provided further, that before any such construction is commenced, the plans and specifications thereof must be approved in writing by the City. It shall be unlawful for any telephone, telegraph or power company or any other public utility company or person to lease or otherwise make available to any person, any poles, lines, facilities, equipment, or other property for use in connection with the operation of a Cable Television System or the provision of Cable Television Service, unless such other person holds a valid Franchise granted pursuant to the provisions of this Chapter. (B) The poles used for Company’s distribution system shall be those erected and maintained by the public utility providing telephone service and the public utility providing electric service. Wherever possible, it shall be the sole responsibility of the Company to negotiate rental agreements with said public utilities to secure the necessary space on said poles for its operation under this franchise. Where the use of poles owned by said public utilities is not practicable or mutually satisfactory rental agreements cannot be entered into with said public utilities following a good faith effort on the part of the Company to obtain such agreements, the Company may erect poles where necessary and when the location of such pole(s) has been approved by the City’s Authorized Agent, or where poles are not available for attachment by the Company, the Company shall have the right to install underground lines in the manner hereinafter provided. The erection of poles shall be subject to all existing ordinances and regulations of the City applicable thereto. Where the telephone service and electric service are both underground, the Company shall install its distribution system in the same underground fashion, provided that the Company shall, at its own expense, properly backfill any excavation made from said line and restore the surface of the ground to a condition reasonably equal with its condition prior to such excavation and for a period of one (1) year correct by additional backfilling any sinking or settlement of such excavation. (C) The authority granted to a Grantee pursuant to the provisions of this Chapter is not and shall not be deemed to be an exclusive right or permission. The City expressly reserves the right to grant one or more non-exclusive Franchises to operate a Cable Television System to other persons for the entire Franchise area at any time under the same substantive terms and conditions as apply to the existing Grantee. No such additional Franchise granted by the City shall in any way affect the obligations of any other Grantee. (D) If the City grants an additional Franchise under this Chapter which contains terms deemed more favorable by any existing Grantee, said existing Grantee may elect to incorporate said terms or provisions into its existing Franchise upon notice to the City. 8-1-9 RIGHT-OF-WAY OCCUPANCY. (A) Use. The Company’s transmission and distribution system, poles, wires and appurtenances shall be located, erected and maintained so as not to endanger or interfere with the lives of persons, or to interfere with improvements the City may deem proper to make, or to unnecessarily hinder or obstruct the free use of the streets, alleys, bridges or other public property. (B) Restoration. In case of the disturbance of any pavement, sidewalk, driveway or other surfacing, the Company shall, at its own cost and expense and in a manner approved by the City’s Authorized Agent, replace and restore all paving, sidewalk, driveway or surface of any street or alley disturbed in as good a condition as before said work was commenced and for a period of one (1) year correct any defect or failure in such replacement or restoration. (C) Relocation. In the event that at any time during the period of this franchise the City shall by reason of moving or construction of public facilities, traffic conditions, public safety, or street vacation, or the City shall lawfully elect to alter or change the grade of any street, alley, or public way, requiring the moving or relocation of any of the facilities of the Company, the Company, upon reasonable notice by the City, shall remove and relocate its poles, wires, cables, underground conduits and other fixtures at its own expense. (D) Temporary Removing of Wire for Building or Moving. The Company shall, on the request of any person holding an appropriate permit issued by the City, temporarily remove, raise or lower its wires to permit the moving of the buildings. The expense of such temporary removal, raising or lowering of the wires except as applies in paragraph (C) above, shall be paid by the person requesting the same and the Company shall have the authority to request such payment in advance. (E) Tree Trimming. The Company shall have the authority to trim trees upon and overhanging streets, alleys, sidewalks, and public places of the City to prevent the branches of such trees from interfering with the wires and cable of the Company. All tree trimming shall be done at the expense of the Company, in accordance with City specifications and upon prior notification of the City. 8-1-10 CODES. All construction of the Company, including installation and maintenance of its transmission and distribution system shall be in accordance with the provision of this National Electrical Safety Coe, the Statutes of the State of Illinois, and all applicable ordinances of the City. The Company shall provide, prior to the commencement of construction, a map designating the location of the cable television transmission and distribution facilities for approval by the City. (See Chapter 33) 8-1-11 FRANCHISE FEE. (A) Because the City finds that the administration of a Franchise granted pursuant to this Chapter imposes upon the City additional regulatory responsibility and expense, a Grantee of any Franchise hereunder shall pay to the City, within forty-five (45) days of the end of the second quarter and last quarter of its fiscal calendar year, an annual sum equal to five percent (5%) of its Basic Revenues. This fee shall be in addition to any and all taxes which are now or may be deemed to reimburse the City for all costs of regulating the Cable Television System of the Grantee and shall cover the expense of all regulatory requirements including, but not limited to, any performance testing required by the City under the terms of this Chapter and any renewal or transfer procedures arising hereunder. (B) Acceptance of payments hereunder shall not be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable under this Chapter or for the performance of any other obligations hereunder. 8-1-12 ASSIGNMENT. The Company shall not sell, lease or transfer its plant or system to another, or transfer or assign any rights under this franchise to another, without prior written consent of the governing body of the City and no such sale or transfer shall be effective until the vendee, assignee, or leasee has filed in the office of the City Clerk a statement duly executing and reciting the fact of such sale, assignment or lease and accepting the terms of the franchise and agreeing to perform all the conditions thereof. Consent shall not be unreasonably withheld. 8-1-13 LIMITATIONS OF FRANCHISE. (A) In addition to the limitations otherwise herein appearing, the Franchise is subject to the limitation that the Grantee shall at all times during the life of any Franchise hereunder be subject to the lawful exercise of its police power by the City and other duly authorized regulatory state and federal bodies and shall comply with any and all ordinances which the City has adopted or shall adopt applying to the public generally and shall be subject to all laws of the State of Illinois and the United States. (B) Time shall be of the essence in any Franchise granted hereunder. The Grantee shall not be relieved of its obligations to comply promptly with a provision of this Chapter by the failure of the City to enforce compliance. Failure of the City to enforce any breach by the Grantee shall not constitute a waiver by the City. (C) Any poles, cable, electronic equipment or other appurtenances of the Grantee to be installed in, under, over, along, across or upon a street shall be so located so as to cause minimum interference with the public use of the streets and to cause minimum interference with the rights of other users of the streets or property owners who adjoin any of the streets. (D) In the event of disturbance of any street, other public property, or private property by Grantee, it shall, at its own expense and using reasonable efforts, replace and restore property to the condition existing before the work was done. (E) Grantee shall contract, maintain and operate the Cable Television System so as to cause minimum inconvenience to the general public. All excavations shall be property guarded and protected. All excavations shall be filled and the surface restored promptly after completion of the work at Grantee’s sole cost and expense. The Grantee shall at all times comply with all excavation ordinances of the City. (F) The Grantee shall, upon reasonable notice from any person holding a building moving permit issued by the City, temporarily alter its facilities to permit the moving of such building. The actual cost of such altering shall be borne by the person requesting the altering and the Grantee shall have the right to request payment in advance. For the provisions of this Chapter, reasonable notice shall be construed to mean at least seventy-two (72) hours prior to the move. (G) If, at any time, in case of fire or disaster in the City it shall become necessary in the judgment of the City Manager or the Chief of the Fire Department or their designee to cut or move any of the wires, cable amplifiers, appliances, or appurtenances thereto of the Grantee, such cutting or moving may be done and any repairs rendered necessary thereby shall be made by the Grantee at no expense to the City. 8-1-14 ADDITIONAL CITY RIGHTS IN FRANCHISE. (A) The City reserves the right upon reasonable notice to require the Grantee at his expense to protect, support, temporarily, disconnect, relocate or remove from the streets any property of the Grantee by reason of traffic conditions, public safety, street construction or excavation, change or establishment of street grade, installation of sewers, drains, water pipes, power or communication lines, tracts, or other types of structure or improvements by governmental agencies. Reasonable notice for this provision of the Chapter shall be construed to mean at least thirty (30) days except in the case of emergencies where no specific notice period shall be required. (B) In the event of the failure by the Grantee to complete any work required by paragraph (A) above or any work required by City law or ordinance within the time established, the City may cause such work to be done and the Grantee shall reimburse the City the reasonable costs thereof within thirty (30) days after receipt of an itemized list of such cost. (C) The City reserves the right, in the event of an emergency or disaster, to require the Grantee to make available to the City Manager, upon request, Grantee’s audio override, if any, and Community Channel, if any, at no cost, for emergency use during such emergency or disaster period. (D) The City reserves the right during the life of any Franchise hereunder to inspect, upon reasonable notice, at all reasonable hours, the Grantee’s contracts and engineering records dealing with Gross Revenue and technical service provided by Grantee, provided that information pertaining to service to individual subscribers will be available pursuant to Section 631 of the Cable Act. (E) The City reserves the right during the life of any Franchise granted hereunder, to install and maintain free of charge upon the poles or in the conduits of a Grantee any wire and pole fixtures necessary for municipal networks such as police and fire, on the condition that such installations and maintenance thereof do not interfere with the operations of the Grantee. (F) The City reserves the right during the life of any franchise granted hereunder, to reasonably inspect all construction or installation work performed subject to the provisions of this Chapter to ensure compliance with the terms of this Chapter. At its own expense, the City may also perform measurements upon and randomly inspect any portion of a Grantee’s system to ensure compliance with the technical standards under which the Grantee is authorized to operate provided that such measurements or inspection does not interfere with the operation of the Cable Television System. (G) At any time during the term of the Franchise, but no more than once annually, and upon thirty (30) days notice, the City reserves the right to hold a public hearing for the express purpose of reviewing the general and specific performance of the Grantee with regard to all Franchise provisions contained herein or in any Franchise Agreement issued hereunder. (H) Any right or power in or duly impressed upon any officer, employee, department or board of the City shall be subject to transfer by the City Council by law to any other officer, employee, department or board of the City. The City reserves all rights not specifically granted herein, and the enumerations of the rights herein shall not be construed to be a limitation of any right or power the City may otherwise have. 8-1-15 SERVICE AREA. (A) subject to the provisions of paragraph (B) of this Section, the Grantee of any Franchise hereunder shall offer Cable Television Service and Cable Internet Service to all potential Residential Subscribers who are located within the City limits as of the effective date of the Franchise. Subject to the provisions of paragraph (B) of this Section, the Grantee shall offer Cable Television Service to all potential Residential Subscribers within any area described in any annexation ordinance passed after the passage of this Chapter, within one (1) year of the effective date of the said annexation ordinance. (B) The Grantee of any Franchise hereunder shall offer Cable Television Service and Cable Internet Service to all potential Residential Subscribers located within one hundred fifty (150) feet of Grantees feeder cable where there exists a minimum density of thirty-five (35) dwelling units per mile. The Grantee may elect, but has no obligation, to offer Cable Television Service and Cable Internet Service to areas not meeting the above standard. (C) In the event the continued use of a street is denied for any reasonable reason related to the public health, safety or welfare, the Grantee will make every reasonable effort to provide Residential Service over alternate routes. 8-1-16 TIME FOR PROVIDING SERVICE. Unless otherwise authorized by the City Council, all areas meeting the requirements of Section 8-1-12(B) subsequent to the effective date of a Franchise granted pursuant to this Chapter shall be offered Cable Television Service and Cable Internet Service within twelve (12) months of the effective date of the annexation. 8-1-17 CONDITION OF USE OF STREETS. (A) The poles used for a distribution system shall be, to the extent possible, those erected and maintained by either a power company or a telephone company, or both. Notwithstanding any other provisions of the Chapter, no poles except replacements for existing poles shall be erected by or for the Grantee, in any street, except when necessary to service a subscriber. Any poles, wires, cable or other facilities to be constructed or installed by Grantee on or within the streets shall be constructed or installed only at such locations and depths and in such a manner as to comply with all state statutes and rules and regulations of the State of Illinois, the City, and any other agency of competent jurisdiction. (B) The installation of truck and distribution lines, including service drops to subscribers, shall be made underground in areas where both telephone and power lines are underground or are placed underground and the service poles are removed. (C) The Company shall lay all cables, wires and lines both on the public and private properties of the City at its own expense, but the Company shall have the privilege of charging its customers both an installation fee to bring the service to their properties and a monthly fee for their continued use of the service. A schedule of the initial charges for service is attached and shall be placed on public file with the City Clerk upon enactment of the Chapter by the City. The Company shall have the right to adjust its rates for monthly basic cable service in a percentage equal to the changes in the U.S. Bureau of Labor Statistics Consumer Price Index upon the notification of its customers and the filing with the City Clerk of a dated revised schedule of changes thirty (30) days prior to the effective date. Changes in rates greater than described above can be effected by the Company upon sixty (60) days notice filed in schedule form with the City Clerk and shall become effective sixty (60) days subsequent to such filing unless the Company is notified in writing by the City within thirty (30) days of receipt of the rate schedule that such changes are unacceptable or require further examination by the City. Further action shall be effected by utilization of the procedures outlined in Section 8-1-26 below. Rates charged by the Company for ancillary services apart or in addition to the Basic Cable Service or Basic Cable Internet Service shall be established by the Company independent of the regulatory procedure described above but shall be on file for inspection by the public in the Company’s offices and shall appear on all the Company’s brochures or literature describing said services. 8-1-18 SYSTEM DESIGN AND CHANNEL CAPACITY. The Cable Television System shall be constructed and operated in a manner as set forth in this Chapter. The Cable Television System shall have a capacity of at least 300 mHz bandwidth and shall be constructed and operated in a manner as set forth in the Chapter. 8-1-19 INTERCONNECTION. Where economically reasonable and technically possible, Grantee may connect its system with other cable systems adjoining it so as to provide the widest possible combination of programming in the most efficient manner. 8-1-20 SERVICE TO GOVERNMENT BUILDINGS. The Grantee shall, upon request therefore, provide and furnish without charge to all public educational institutions and governmental buildings within the Service Area and within one hundred fifty (150) feet of Grantee’s existing distribution cable, one (1) service outlet. The institutions shall be entitled to receive, free of charge, the Grantee’s basic cable television service and basic cable internet service. 8-1-21 PARENTAL CONTROL DEVICES. The Grantee shall at all times have available parental control devices for the purpose of controlling premium television programming on individual subscriber television sets. The Grantee shall have the right to charge reasonable fees for the use of such devices. 8-1-22 CONSTRUCTION STANDARDS. (A) Grantee shall construct, install, operate and maintain the Cable Television System in a manner consistent with all laws, ordinances, construction standards, governmental requirements and the construction and operational standards contained in this Chapter and any Franchise Agreement. (B) All installation and maintenance of electronic equipment shall be of a permanent nature, durable and installed in accordance with the applicable sections of the National Electric Safety Code, the National Electrical Code of the National Bureau of Fire Underwriters and all state and local codes where applicable. (C) Antenna supporting structures (towers) shall be painted, lighted, erected and maintained in accordance with all applicable rules and regulations of the Federal Aviation Administration and all other applicable local or state codes and regulations. (D) All construction methods and standards shall conform to City Zoning Ordinances at the time of construction, and as specified herein and in any Franchise Agreement. (E) Any contractor used by a Grantee for construction, installation, operation, maintenance, or repair of system equipment must be properly licensed under the laws of the State to which the contractor is licensed, and all local ordinances. (F) The City does not guarantee the accuracy of any maps showing the horizontal or vertical location of existing substructures. In public rights-of-way, where necessary, the locations shall be verified by excavation. 8-1-23 OPERATIONAL STANDARDS AND PERFORMANCE MONITORING. (A) The Cable Television System shall be operated in compliance with the service standards established by the National Cable Television Association. (B) The Grantee shall put, keep and maintain all parts of the system in good condition throughout the entire Franchise term. (C) The Grantee shall render efficient service, make repairs promptly and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum system use. (D) The Company shall install a cable system capable of carrying twenty (20) channels of video and audio signals designed for color transmission which can be modified for two way services when the technology and marketplace requirements permit. No modification to the signals offered as the basic cable service or basic cable internet service shall be made by the Company without prior notification and approval by the City provided however that the City shall not unreasonably refuse its approval. The Company shall provide without charge and upon written request from the School Principal, a cable outlet for transmission of Basic Cable Service and Basic Cable Internet Service to each primary and secondary school in the City. The Company shall provide without charge and upon written request from the City’s Authorized Agent, a cable outlet for transmission of Basic Cable Service and Basic Cable Internet Service to each City office building, City library, fire station, and police station within said City. (E) The City reserves the general right to see that the system of the Company is constructed and maintained in a safe condition. In the event the City shall find that an unsafe condition does exist, it shall order the Company to make necessary repairs forthwith and if the Company shall fail to do so, the City shall cause said repairs to be made and collect all cost therein from the Company. (F) Service repair response time to a subscriber outage call shall not exceed forty-eight (48) hours except on weekends and holidays or in circumstances beyond the reasonable control of the Grantee; and trained technicians shall respond on a twenty-four (24) hour day seven (7) days a week basis whenever ten (10) or more verifiable subscriber complaints of outage are received. (G) The Grantee shall have a local, publicly listed telephone number. The City Clerk shall have Certificates of Insurance for the following: (1) A general comprehensive public liability insurance policy, indemnifying, defending and saving harmless the City, its officers, councils, commissioners, agents or employees from any and all claims by any person whatsoever on account of injury to or death of a person or persons occasioned by the operations of the Grantee under the Franchise granted hereunder with a minimum of liability on One Million Dollars ($1,000,000.00) for personal injury or death of any one (1) person, and Three Million Dollars ($3,000,000.00) for personal injury or death of any two (2) or more persons in any one occurrence. Renewal certificates of such insurance shall be promptly forwarded to the City Clerk as such renewals are made, and such insurance shall be constantly kept in force and effect during the term of this Franchise. (2) Property damage insurance indemnifying, defending and saving harmless the City, its officers, councils, commissions, agents, and employees from and against all claims by any person whatsoever for property damage occasioned by the operating of a Grantee under the Franchise granted hereunder with a minimum liability of Three Hundred Thousand Dollars ($300,000.00) for property damage to any one (1) person and Five Hundred Thousand Dollars ($500,000.00) for property damage to two (2) or more persons in any one occurrence. (3) Such insurance as provided for in this Section shall be provided at the Grantee’s sole cost and expense and be kept in full force and effect by the Grantee during the existence of the Franchise and until after the removal of all poles, wires, cables, underground conduits, manholes, and other conductors and fixtures incident to the maintenance and operation of the Cable Television System as defined in the Franchise. (4) All of the foregoing insurance contracts shall be issued and maintained by companies authorized to do business in the State of Illinois and they shall require thirty (30) days written notice of any cancellation or reduction in coverage to both the City and Grantee herein. 8-1-24 FRANCHISE BOND. (A) At the time of filing its written acceptance of the Franchise, the Grantee shall file with the City Clerk and at all times thereafter maintain in full force and effect for the term of the Franchise, at the Grantee’s sole cost and expense, a Franchise bond by a company authorized to do business in the State of Illinois and in a form approved by the City Attorney, in the amount of Ten Thousand Dollars ($10,000.00), conditioned upon the faithful performance of Grantee of all the terms and conditions of its Franchise for the term thereof. (B) The rights to the City with respect to the bond are in addition to all other rights of the City, whether reserved by this Chapter or authorized by law, and no action, proceeding or exercise of right with respect to such bond shall affect any other right the City may have. 8-1-25 PROCEDURES. (A) Any inquiry, proceeding, investigation or other action to be taken or proposed to be taken by the City Council in regard to the Company’s cable television system, including action in regard to a change in subscription rates as stated above, shall be taken only after thirty (30) days public notice of such action or proposed action is published in an area or daily or weekly newspaper having general circulation in the City; a copy of such action or proposed action is served directly on Company and, the Company has been given an opportunity to respond or comment in writing on the action or proposed action. If the Company should request an inquiry, proceeding, investigation or other action, the City, at the Company’s expense, will hold a hearing within thirty (30) days of receipt of the request. (B) The public notice required by this Section shall state clearly the action or proposed action to be taken, the time provided for response and the person or persons in authority to whom such responses should be addressed, and such other procedures as may be specified by the City Council. If a hearing is to be held, the public notice shall give the date and time of such hearing, whether public participation will be allowed and the procedures by which such participation may be obtained. The Company shall be considered a necessary part of any hearing conducted. 8-1-26 SUBSCRIBER CONTRACTS. No contract as to the length of service for a regular monthly residential subscriber shall be required by the Company under ordinary circumstances. The Company agrees that under ordinary circumstances it shall be the right of the subscriber to start or terminate all or any category of his service on the cable according to his own wishes by making advance payments of current rates to commence service, and by reasonable notice to the Company to terminate the service. Furthermore, no subscriber to Basic Cable Service shall be required to subscribe to any ancillary or additional category of service that may be offered by the Company as a condition for continuing to receive those signals and services that are part of the Basic Cable Service as defined in Section 8-1-2 of this Chapter. It is hereby acknowledged, however, that any equipment installed by the Company in behalf of the subscriber on his premise shall remain the property of the Company, and shall be subject to reasonable inspection and service by the Company at reasonable hours and removal upon termination of service. In the event that any subscriber shall fail to meet his obligations according to the approved rate schedule and to met reasonable Company rules and regulations, the Company shall have the right to withhold or deny services to such subscriber. Otherwise, the service rendered by the Company shall be available to all inhabitants of the City along reasonably extended pole routes of Company. Such extended pole routes shall be determined by the Company and approved by the City. 8-1-27 PAYMENT TO CITY. The Company shall pay to the City for the privilege of operating a cable television service within the corporate limits of the City as now exists or hereinafter constituted an annual franchise fee equal to five percent (5%) unless otherwise reduced by FCC regulations of the total annual gross subscriber revenues from the Basic Cable and Basic Cable Internet Service as defined in the definitions in Section 8-1-2 of this Chapter, said payments to be made semi-annually on or before the last day of the sixth (6th) and twelfth (12th) months of the year. Such payments shall be credited against any business and occupation tax or franchise tax or other City tax except personal property taxes required to be paid by the Company. The City shall have the right to inspect at all reasonable times, the records of the Company for the purpose of ascertaining accurately what the actual gross receipts of the Company for cable television service has been for the present or past years. 8-1-28 FILING AND COMMUNICATIONS WITH REGULATORY AGENCIES. The Grantee shall maintain copies of all petitions, applications and communications, relative to any Franchise granted pursuant to this Chapter transmitted by the Grantee to, or received by the Grantee from all federal and state regulatory commissions or agencies having competent jurisdiction to regulate the operations of any Cable Television or Internet System authorized hereunder. Said copies shall be available for inspection by the City during regular business hours of the Grantee. 8-1-29 REQUIRED LICENSES; CERTIFICATION. Within sixty (60) days after its acceptance of this franchise, the Company shall proceed with due diligence to obtain all the necessary certificates, permits, licenses and authorizations which are necessary and required for the conduct of its business. 8-1-30 REPORTS. The Grantee shall file annually with the City Clerk and City Collector not later than four (4) months after the end of its fiscal year during which it accepted a Franchise hereunder and with four (4) months after the end of each subsequent fiscal year, a letter containing the amount of the Gross Revenues for the previous fiscal year certified by Grantee’s controller or chief financial officer. 8-1-31 FRANCHISE RENEWAL. The franchise and rights hereby granted shall take effect and be in full force from and after the final passage hereof as required by law and upon the filing of an unqualified acceptance by the Company with the City Clerk and shall continue in force and effect through the first (1st) day of October, 2007. The Company is further granted an option to extend said term for a period of three (3) years, provided notice of such intent is served in writing upon the City at least six (6) months prior to the expiration of the primary term and such extension is approved by the City. 8-1-32 FRANCHISE REQUIRED. It shall be unlawful for any person to construct, operate or maintain a Cable Television or Cable Internet System in the City unless such person or the person for whom such action is being taken shall have first obtained and shall currently hold a valid Franchise granted pursuant to this Chapter. It shall also be unlawful for any person to provide Cable Television or Cable Internet Service in the City unless such person shall have first obtained and shall currently hold a valid Franchise granted pursuant to the provisions of this Chapter. All Franchises granted by the City pursuant to this Chapter shall contain the same substantive terms and conditions. 8-1-33 DEFAULT AND FORFEITURE. In the event the Company shall fail or refuse to observe the terms and provisions of this Chapter, the City shall be entitled to cancel and terminate this franchise and all rights thereunder provided, however, that the City shall serve upon the Company written notice of such violations and the Company shall thereupon correct such violation or show cause why such violation should or cannot be corrected not more than thirty (30) days from and after the date of receipt of said notice. In the event the Company fails to correct such violations within said time or satisfactorily show cause why such violations should not be corrected, this franchise shall thereupon be null and void and of no further force or effect, but all rights accruing to the City against the Company shall continue in favor of the City. 8-1-34 FCC RULES. Any modifications of the rules and regulations of the FCC shall be incorporated into this Chapter and franchise within one (1) year of its effective date. 8-1-35 UNAUTHORIZED CONNECTIONS OR MODIFICATIONS. (A) It shall be unlawful for any person without the expressed consent of the Grantee, to make any connection, extension, or division whether physically, electronically, or otherwise with or to any segment of the Cable Television System for any purpose whatsoever. (B) It shall be unlawful for any person to willfully interfere, tamper, remove, obstruct, or damage any part, segment, or content of a Franchised Cable Television System or Cable Internet System for any purpose whatsoever. (C) Any person found guilty of violating this Section may be assessed a fine not to exceed Five Hundred Dollars ($500.00) or sentenced to thirty (30) days in jail, or both. 8-1-36 NOTICE. Whenever under the terms of the Franchise either party shall be required or permitted to give notice to the other, such notice shall be in writing and if to be served on the City, it shall be delivered either by first class U.S. mail or by handing such notice to the City Manager at the City municipal offices, and if to Grantee, then by delivering by first class U.S. mail or by handing such notice to such officer at such address as Grantee shall from time to time direct. The original name and address of the officer on behalf of Grantee shall be included in Grantee’s acceptance of the Franchise. 8-1-37 AMENDMENTS. The provisions of this franchise are compatible with the existing law of the U.S. Government, State of Illinois and regulations of the FCC. In the event of any amendment, modification or supplemental legislation or regulation which change the limitations now imposed by such law or regulations, other than as provided in Section 8-1-35, hereof, this franchise shall, upon written notice of either the City or Company to the other, be amended and changed in accordance with such amendment, modification or supplement. 8-1-38 SEVERABILITY. If any section, sentence, clause or phrase of this Chapter is held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity of the remainder of this Chapter, and any portions in conflict are hereby repealed. 8-1-39 CONFORMITY WITH LAWS. This Chapter is made under and in conformity with the laws of the State of Illinois, the City of Carrollton and shall take effect and be in force as therein provided. 8-1-40 CAPTIONS. The captions to sections are inserted solely for convenience and shall not affect the meaning or interpretation of the Chapter. 8-1-41 EFFECTIVE DATE. This Chapter shall take effect and be in force from and after its adoption by the City Council of the City of Carrollton, State of Illinois, this tenth (10th) day of August, 2004. Any previously adopted Cable Television Franchise Ordinance and any amendments thereto, are hereby repealed. [Unless Otherwise Noted, this Chapter Ord. No. 04-550; 08-10-04]