Loading...
HomeMy WebLinkAbout06-204 , . SECTION 1: SECTION 2: Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Section 9. Section 10. Section 11. Section 12. Section 13. Section 14. Section 15. Section 16. Section 17. Section 18. Section 19. Section 20. Section 21. to'" -- (k - Sð7 7/5/06 RESOLUTION NO. 06-204 A RESOLUTION APPROVING A FRANCHISE AND CONSTITUTING A FRANCHISE AGREEMENT WITH LITESTREAM HOLDINGS, LLC ("LITE STREAM") PURSUANT TO THE COUNTY OF ST. LUCIE, FLORIDA, ORDINANCE NO. 98-09 CABLE TELEVISION CODE, AND AS SAME MA Y BE AMENDED OR REPEALED AND REPLACED, TO OWN, OPERATE AND MAINTAIN A CABLE TELEVISION SYSTEM IN ST. LUCIE COUNTY, FLORIDA, AND SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF SUCH FRANCHISE AND PROVIDING FOR REGULATION AND USE OF SUCH SYSTEM; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING A SAVINGS CLAUSE AND EFFECTIVE DATE THEREFORE. Approval of Franchise.................................................................................... 2 Constitution of Franchise Agreement. .......................................................... 2 Definitions. ....................................................................................................... 3 Grant of Franchise........................................................................................... 4 Term of Franchise... ......................... ....... ................. ........................................ 4 Non-Exclusive Franchise............................................................................. 5 Franchise Subject to Communications Act, State Law and Ordinance. .... 5 Franchisee Subject To Other Laws, Police Power.................................... 5 Reservation of Rights. .......................................... ...........................................6 Insurance. ......................................................................................................... 6 Indemnification of the County. ...................................................................... 7 Construction Bond....................................................................................... 7 Security Fund..... ......................... ............. ........... ........... ....................... .......8 Use of Streets............................................................. ................. .................. 9 Minimum Facilities and Services. ............................................................ 11 Technological Improvements to System. ................................................. 14 Technical Standards. ................................................................................. 16 Proof of Performance Tests. ... ............... .......... ........... ...... ........... ............. 17 Area wide-Interconnection. ...................................................................... 17 Access Channels and Facilities. ................................................................ 18 Commercial Leased Access. ......................................................................21 Emergency Use of Facilities. .....................................................................22 Lock-out Devices........................................................................................ 22 Section 22. Section 23. Section 24. Section 25. Section 26. Section 27. Section 28. Section 29. Section 30. Section 31. Section 32. Section 33. Section 34. Section 35. Section 36. Section 37. SECTION 3. SECTION 4. SECTION 5. SECTION 6. SECTION 7. 7/5/06 Closed-circuit Captioning for the Hearing Impaired............................. 22 Line Extension Policy. ........................ ...... ...... ................. .......................... 22 Cable Home Wiring Commitments.......................................................... 23 Franchise Fee. ....... ........................... ...... ........... ........... ...... ........................23 Reports and Records. ................................................................................ 26 Right to Inspect Financial Records and Facilities. .................................26 Customer Service Requirements. ............................................................. 27 County Purchase of Cable System. ..........................................................28 Modification of Franchise. ........................................................................ 28 Transfer of Franchise. .................... .......... ............ ........... ............ .............. 28 Procedures for Requesting Approval of Transfer. ................................. 28 Renewal of Franchise. ............. ....... ............ ...... ........... ..............................32 Rates............................................................................................................ 32 Enforcement Remedies.............................................................................. 32 Written Notice of Acceptance. .................................................................. 34 Execution in Counterpart. ........................................................................ 34 Repeal of Conflicting Resolution................................................................. 35 Savings. .......................................................................................................... 35 Severability... ....... ...... .............................. ................ ............. ........... ...... ........36 Applicable Law. ........................................ ........... ........... ..............................36 Effective Date. ............................................................................................... 36 BE IT RESOLVED BY THE COUNTY THAT: SECTION 1: Approval of Franchise. The Board of County Commissioners of S1. Lucie County, Florida hereby approves a franchise with Litestream Holdings, LLC to construct, operate, and maintain a cable television system in the unincorporated area of S1. Lucie County, Florida. SECTION 2: Constitution of Franchise A2reement. The following shall constitute the Franchise Agreement between the County of S1. Lucie, Florida and Litestream: THIS AGREEMENT, effective this 27th day of July, 2006, is by and between the COUNTY OF ST. LUCIE ("the County") and, Litestream Holdings, LLC. l 2 7/5/06 WHEREAS, pursuant to the Communications Act of 1934, as amended, 47 U.S.c. §§521 et seq., the County may grant a franchise to construct, operate and maintain a cable television system; and WHEREAS, on March 24, 1998, the Board of County Commissioners of S1. Lucie County ("Board") adopted Ordinance No. 98-09, providing for the issuance and regulation of cable television franchises, and the installation, construction and operation of, cable television systems within the County; and WHEREAS, Litestream desires to obtain a franchise to construct, install, maintain, and operate a cable system in the County, and has applied to the County for a grant of such Franchise Agreement; and WHEREAS, the construction, installation, maintenance, and operation of such a system involves the use and occupation of the Streets of the County, over which the County exercises governmental control; and WHEREAS, the Board has evaluated Litestream's application in light of the requirements of federal and state law and Ordinance No. 98-09 of S1. Lucie County, and has conducted a public hearing concerning Litestream's Franchise application; and WHEREAS, the Board has relied on Litestream's representations and has considered all information presented to it by Litestream, the County staff, and the public; and WHEREAS, based on said representations and information, the Board has determined that a grant of a nonexclusive franchise to Litestream to construct, install, maintain and operate a cable system in the County, subject to the terms and conditions set forth herein and in Ordinance 3 7/5/06 No. 98-09, and as same may be amended or repealed and replaced, is consistent with the public interest; and WHEREAS, on June 27, 2006, the Board determined to grant Litestream an application for a non-exclusive franchise to own, construct, install, maintain and operate a cable television system within the County, subject to the terms and conditions of Ordinance No. 98-09 and subject also to the County and Litestream entering into this Franchise Agreement; and WHEREAS, the County and Litestream have reached agreement on the terms and conditions of this Franchise Agreement which shall supercede any and all prior authorizations, including but not limited to licenses, permits and franchises. NOW, THEREFORE, in consideration of the County's grant of Litestream's Franchise to own, construct, install, maintain and operate a cable system within the County, and to use and occupy the Streets of the County for that purpose, and in consideration of Litestream's promise to provide cable service to residents of the County pursuant to the Ordinance and under the terms and conditions set forth herein, and in consideration of the promises and undertakings herein, and other good and valuable consideration, the receipt and the adequacy of which is hereby acknowledged, the Franchise is hereby granted; and THE SIGNATORIES DO HEREBY AGREE AS FOLLOWS: Section 1. Definitions. Except as otherwise provided herein, the definitions in Section 1-5.5-10 of Ordinance No. 98-09 or any replacement Ordinance of the County of St. Lucie, Florida, shall govern this Franchise Agreement. In addition, the following definitions shall apply: 3 7/5/06 A. Ordinance shall mean Ordinance No. 98-09 of the County of St. Lucie, Florida, and as said Ordinance may hereinafter be amended or repealed and replaced by a successor ordinance. B. Franchisee shall mean Litestream Holdings, LLC ("Litestream"), and its lawful and permitted successors, assigns and transferees pursuant to Sections 30 and 31 of this Agreement and Ordinance No. 98-09 of the County ofSt. Lucie, Florida. C. Franchise Area shall mean Sunset Lakes Development, a 506 single family dwellings development located at (insert legal description) in unincorporated St. Lucie County, and such other areas in the unincorporated areas of the County requested by the Franchisee and approved in writing by the Board of County Commissioners. D. Notice to the cable operator shall be deemed effective upon receipt. Notice to the County shall be effective upon receipt by the County Administrator. Section 2. Grant of Franchise. Subject to the terms of this Franchise Agreement and Ordinance No. 98-09 and any amendments thereto or successor Ordinance, the County hereby grants Franchisee a franchise for the right and privilege to own, construct, install, maintain and operate a cable system within the Franchise Area. Section 3. Term of Franchise. This Franchise shall be for a period of ten (10) years unless otherwise sooner terminated or otherwise extended in accordance with the terms of this Franchise Agreement. The Franchise shall commence upon the date that the Resolution approving this Franchise becomes effective, 4 7/5/06 provided the Franchisee gives the County the written acceptance required by Section 36 hereof, which must occur prior to the date on which the Board of Cou~ty Commissioners is scheduled to adopt a resolution approving the grant of the franchise. This Franchise Agreement is subject to all other requirements and conditions set forth in this Franchise Agreement and in Ordinance No. 98-09 of the County for a grant of a franchise to become effective. Section 4. Non-Exclusive Franchise. The Franchisee's right to use and occupy the Streets shall be non-exclusive, and the County reserves the right to grant a similar or other use of said Streets, or any portions thereof, to any person, including the County, at any time during the term of this Franchise Agreement. Section 5. Franchise Subiect to Communications Act, State Law and Ordinance. A. This Franchise Agreement is subject to and shall be governed by all terms, conditions and provisions of the Communications Act, any amendments thereto, and any other applicable provision of federal or state law, existing or hereafter adopted. B. This Franchise Agreement is subject to and shall be governed by all terms, conditions and provisions of Ordinance No. 98-09 or successor Ordinance of the County, in addition to the terms, conditions and provisions set forth in this Franchise Agreement, existing or hereafter adopted. Section 6. Franchisee Subiect To Other Laws, Police Power. A. The Franchise is subject to and agrees to comply with all applicable County, state and federal laws, ordinances, rules, regulations and orders, existing or hereafter adopted. 5 7/5/06 B. The Franchisee shall at all times be subject to all lawful exercise of the police power of the County, and this Agreement is not intended to limit the County's exercise of such power In any way. Section 7. Reservation of Ri2hts. A. This Franchise Agreement may be modified, after public notice and hearing, as necessary to comply with the laws of the State of Florida and federal law, including, but not limited to, the rules and regulations promulgated by the Federal Communications Commission. B. The County reserves the right to adopt and incorporate by reference herein, by resolution or ordinance, any additional terms, conditions, or regulations as it shall find necessary in the lawful exercise of its police powers as granted by the Constitution of the State of Florida, or by other applicable state or federal law. C. The County reserves the right to acquire, purchase, own and/or operate a cable system to the extent permitted by local, state and federal law. Section 8. Insurance. A. Franchisee shall obtain and maintain Insurance of the types and mInImUm amounts required in Section 1-5.5-32 of Ordinance No. 98-09 in such a manner as to comply with each and every requirement of that Section. B. The Franchisee shall provide proof to the County of compliance with this Section no later than thirty (30) days from the date of the Board resolution approving the grant of the franchise. Failure to provide the County with proof of insurance within the prescribed time 6 7/5/06 period will render this Franchise Agreement and the grant of the franchise null and void without further action by the County. Section 9. Indemnification of the Countv. Franchisee shall, at its sole cost and expense, indemnify, hold harmless, and defend the County, its elected or appointed officials, employees, committees and boards, against any and all claims, suits, costs, losses, damages, expenditures, causes of action, proceedings, judgments for equitable relief, and costs and expenses so as to comply with Section 1-5.5-31 of Ordinance No. 98-09. Section 10. Construction Bond. Pursuant to Section 1-5.5-34 of Ordinance No. 98-09, prior to the commencement of any construction but no later than thirty (30) days of the effective date hereof, Franchisee shall furnish a construction bond in favor of the County in the amount of not less than Fifty Thousand Dollars ($50,000). If such construction bond is not furnished, the Franchisee shall pay to the County liquidated damages pursuant to Section 35 herein or at the County's discretion, this Franchise Agreement and the grant of the franchise shall be subject to revocation pursuant to Section 35 herein and the procedures set forth in Ordinance No. 98-09. The construction bond must be approved by the County Administrator, which approval shall not be unreasonably withheld. The construction bond shall be maintained during the period of construction and for a period of not less than six (6) months after the completion of the system serving Sunset Lakes. Notwithstanding anything to the contrary, pursuant to Section l(c) hereof, any approval by the Board of County Commissioners of additional areas to be served by Franchisee other than Sunset 7 7/5/06 Lakes shall be conditioned upon Franchisee furnishing a Construction Bond pursuant to this Section 10. Section 11. Security Fund. A. Pursuant to Section 1-5.5-33 of Ordinance No. 98-09, Franchisee shall provide the County an initial security fund in the form of a bond in a form acceptable to the County Administration in the amount of Thirty Thousand Dollars ($30,000) as security for the faithful performance of all provisions of the Franchise Agreement, Ordinance No. 98-09 of the County all orders of and all claims, liens, or fees due to the County. If such security fund or bond is not furnished to the County within thirty (30) days of the date of Board of County Commissioners' resolution approving the grant of the Franchise, then Franchisee shall pay to the County a fine in the amount of One Thousand Dollars ($1,000) per day, beginning on the 3151 day, until the date on which the security fund or bond is received by the County. In the event said bond is not received within 30 days of the date after the Board resolution approves the grant of the fund, this Franchise Agreement and the grant of the franchise will be subject to revocation pursuant to Section 35 herein and procedures set forth in Ordinance No. 98-09. Notwithstanding anything to the contrary, pursuant to Section 1 (c) hereof, any approval by the Board of County Commissioners of additional areas to be served by Franchisee other than Sunset Lakes shall be conditioned upon Franchisee increasing the amount of the Security Fund to an amount established by the County Administrator at the time. B. If after thirty (30) calendar days after receipt of written notice, Franchisee fails to pay to the County any fees or taxes due and unpaid, or any liquidated damages pursuant to 8 7/5/06 Section 35 hereof, damages, costs or expenses that the County has incurred by reason of any act, omission or default of Franchisee in connection with this Franchise Agreement or Ordinance No. 98-09, the County may immediately withdraw that amount, with interest and any costs, from the security fund or make such equivalent claim against the guarantee. Upon such withdrawal or claim, the County shall notify Franchisee in writing of the amount and date of the withdrawal. C. Within thirty (30) calendar days after notice to Franchisee that an amount has been withdrawn by the County from the security deposit, Franchise shall deposit a sum of money sufficient to restore the security fund to its original amount. If Franchisee fails to restore the security fund to the original amount within that thirty (30) calendar day period, the Franchise shall be subject to penalties and the franchisee shall pay interest on the amount by which the security fund has been reduced at three (3) percent above the then prevailing prime rate. D. The security fund shall become the property of the County in the event the franchise is revoked. E. If the franchise expIres or terminates for reasons other than revocation, any security fund or corporate guarantee will be maintained by the Franchisee for six (6) months from the date of termination and the remaining fund will be returned to Franchisee six (6) months from the termination date of the franchise, provided there is no outstanding default and less any unpaid amounts owed to the County by Franchisee or any amount in dispute. Section 12. Use of Streets. A. Franchisee agrees at all times to comply with and abide by all applicable provisions of the County Code. 9 7/5/06 B. Unless granted a waiver for good cause by the County, all of Franchisee's cable system distribution facilities shall be installed and maintained underground and shall comply with Section 1-5.5-24 of Ordinance No. 98-09 and the County Code. C. When not underground, Franchisee shall utilize, with the owner's permISSIOn, existing conduits, poles, or other facilities whenever feasible. The Franchisee has the duty and the responsibility to obtain or establish the existence of an easement or dedication for its use. Copies of agreements for use of conduits or other facilities shall be filed with the County, pursuant to Section 1-5.5-24 of Ordinance No. 98-09. D. All of Franchisee's transmission lines, equipment, structures and other facilities shall be installed, located and maintained so as to cause minimum interference with the rights and convenience of property owners. The County may issue such rules and regulations concerning the installation and maintenance of a cable system installed in, on, or over public Streets, as may be consistent with the Ordinance. E. All safety practices required by applicable federal, state or local law or accepted industry practices and standards shall be used during construction, maintenance and repair of the cable system. F. As required by the County, and upon receipt of written notice from the County, Franchisee shall remove, relocate, replace or modify at its own expense (except as otherwise required by law) its facilities within any public Street for the reasons set forth in Section 1-5.5-25 of Ordinance No. 98-09. 10 7/5/06 G. Franchisee shall obtain any required permits and pay any required fees before commencing any construction on or otherwise disturbing any private property or public Streets as a result of its construction or operations. Franchisee shall, at its own expense, restore such property pursuant to the requirement of Section 1-5.5-25 of Ordinance No. 98-09. If such restoration is not performed in a reasonable and satisfactory manner within thirty (30) calendar days, the County may, after prior written notice to Franchisee, cause the repairs to be made at Franchisee's expense pursuant to Section 1-5.5-26 of Ordinance No. 98-09. The Franchise shall pay to the County the cost thereof in the itemized amounts reported by the County Administrator to the Franchisee within thirty (30) days of receipt of the County invoice. H. If the County is required to perform emergency Street work requiring relocation of Franchisee's facilities in the Streets, then Franchisee shall reimburse the County for its reasonable costs associated with such relocation. I. Franchisee shall not place facilities, equipment or fixtures where they will interfere with any other entities lawfully using the public rights-of-way serving the residents of the County. All such facilities, equipment or fixtures placed in any public Street or public right- of-way shall, to the best of the Franchisee's ability, be placed close to the line of the lot abutting on the public Street, in a manner so as not to interfere with use of the public Street. Section 13. Minimum Facilities and Services. A. Franchisee's cable system shall, at a minimum, be able to pass frequencies of at least 860 MHZ. 11 7/5/06 B. Franchisee agrees to comply fully with Ordinance No. 98-09. Franchisee further agrees to provide cable service, without charge, to any and all existing County buildings and any and all County buildings that may be constructed or opened within the County during the term of this Franchise Agreement where Franchisee's plant is the closest facility of a franchised operator to any given location requesting service. Such service shall include the basic cable service tier and all programming offered on the cable programming service tier including any additional programming added to those two levels of service, to the extent a separate charge is not associated with such additional programming. C. School Commitments. 1. Franchisee shall, at a minimum, provide a service connection at one outlet on each floor in all public schools (grades K-12) where Franchisee's plant is the closest franchised operator activated plant to the location. Such connections will be made free of charge and as promptly as possible to all unserved schools requesting such a connection. Upon request, Franchisee will provide, at Cost, such a service connection to any other unserved K-12 public or private school located within the unincorporated area of the County. If any internal wiring installation is requested to serve additional outlets in any school, it will be provided at Cost; provided, however, that such internal wiring will be provided without charge if Franchisee is able to coordinate with other comparable electrical wiring installation in cases of new construction or substantial rehabilitation of existing schools in Franchisee's franchise areas. 2. Any public or private school connected pursuant to subparagraph 1 above may elect to install its own internal wiring (provided such wiring meets required technical 12 7/5/06 specifications) and to bear the cost thereof. Free basic and free cable programming service tier service will be provided to each outlet in all connected public and private schools; provided, however, Franchisee has the right to charge for any actual costs incurred for the insertion of additional equipment necessary to provide a reliable quality signal to the additional outlets. 3. Franchisee will provide a free education program listing to each connected school. Additional copies of such program listings will be provided, if requested by a school, at Cost. Such educational program listing will identify and describe programming on Franchisee's system that is appropriate for use in the classroom and will provide suggested curriculum support ideas. 4. Franchisee will use its best efforts to provide to each connected school materials for teachers that explain the educational applications of Franchisee's broadband cable systems and services. The materials will be provided to all connected schools. Additional copies of such materials will be provided, upon request, at Cost. 5. Franchisee will, upon request by the County Administrator, local school department, or any individual school, public and private, provide schools where Franchisee's plant is the closest cable plant with at minimum one free connection for high speed internet access. Upon request, each connected school will receive at minimum one free cable modem and free, unlimited access to the Franchisee's on-line service for use during the school year. Additional cable modems and operational support and services (for example, assisting connected schools in setting up and maintaining reliable Internet connections), will be provided to connected schools at a cost not to exceed Franchisee's actual cost, upon request. Free and 13 7/5/06 reasonable access to the Franchisee's on-line service will be provided through each such modem for use during the school year. However, Franchisee shall not be responsible for the installation or cost associated with the installation of telephone lines separate from those installed by Franchisee or its affiliate. 6. Franchisee agrees not to seek to recover the cost for these connections as external or other costs. 7. Nothing herein shall preclude Franchisee from providing benefits to schools which exceed those provided herein. D. All video signals received for transmission that contain closed circuit captioning information for the hearing impaired shall in turn contain such information in the form received when transmitted by the cable operator to the subscribers of the system. E. Franchisee shall take affirmative, economically feasible steps to ensure maximum availability of the services and facilities of the system, including without limitation all access channel services and facilities, to handicapped persons, including hearing impaired persons. Franchisee shall comply fully with all applicable laws concerning handicapped or disabled persons, and shall indemnify and hold the County harmless from any suit, claim, or demand against it for violation of such laws that arises from Franchisee's provision, or failure to provide, services in conformity with such laws. F. The Franchisee and the County recognize that Litestream Holdings, LLC and its affiliates and subsidiaries serve communities other than the unincorporated area of St. Lucie County, Florida. At all times after the effective date hereof, and during the term of this 13 7/5/06 Agreement, Franchisee shall provide the County and its subscribers in the unincorporated area of the County, with the minimum comparable products services and benefits which are provided to subscribers by any other system served by Litestream Holdings, LLC or any affiliate or subsidiary. G. The parties recognize that at some time during the term of this franchise or a renewal thereof, the County may require installation of an I-Net for provision or transmission of services over the I-Net. When such System exists and a County building is located within the Franchisee's franchise area, upon request of the County, Franchisee shall use its best efforts to provide a connection for the County building to the INET and to charge the County no more than Franchisee's actual cost for the installation, maintenance and operation of such facilities. H. Upon the request of the County, the Franchisee shall lease to the County, on terms and conditions no less favorable than as provided to any other customer served by the same headend, but in no event an amount greater than the actual cost basis, such up and downstream capacity on the cable system as may be required to allow the County to collect data from subscribers for purposes including, but not limited to, reading water meters, to the extent such capability is available. The Franchisee shall allow the County to co-locate necessary equipment with the cable system and to interconnect such equipment into the cable system, at the County's cost, provided said equipment does not interfere with the cable system's technical integrity. Section 14. Technolo2:ical Improvements to System. A. Upon request of the County Administrator, the Franchisee shall, on the fifth anniversary of the date hereof submit a report in writing to the Board, in a form satisfactory to the 14 7/5/06 County Administrator, on technological advances and the availability of new and enhanced services for cable systems. The report shall state what plans, if any, the Franchisee has for the upgrade or rebuilding of its cable system to conform to the State-of-the-Art as defined in Section 1-5.5-10 (FF) of Ordinance 98-09. The report shall also contain an analysis of the impact of updating the cable system to include new advances upon the Franchisee's technical plant, customer service, subscriber rates, and the Franchisee's financial capabilities. To the extent known by Franchisee, the Franchisee shall also provide the Board with a comparison of the services, facilities and technologies utilized by Franchisee or any Affiliated Person elsewhere or any Multiple System Operator operating a system as defined in "State of the Art", including a list of each jurisdiction in which new technologies have been used or where cable television systems are being upgraded to include new technologies and provide new services, and an assessment of the costs associated with implementing the new technologies. B. At any time during the term of this Franchise, after the fifth anniversary of the effective date hereof, the Board may order a Franchisee to upgrade or rebuild the facilities of its cable television system if the Board finds, on the basis of the hearing record developed pursuant to subsection A: (i) The upgrade or rebuild will serve the community needs and interests of subscribers, institutions, local Programmers, and other Persons interested in Cable Services in the County: (ii) The upgrade or rebuild is economically and technically feasible and viable; and 15 7/5/06 (iii) The upgrade or rebuild is needed to meet future cable related community needs and interest. C. Pursuant to Subsection B, above, should the Board order an upgrade that requires a rebuild of the cable system and said rebuild is completed and activated by Franchisee prior to the eighth anniversary from the effective date hereof, the term of this agreement shall automatically be extended to a period of fifteen (15) years from the date of the initial grant. D. Notwithstanding anything to the contrary, any upgrade or rebuild of a Franchisee's cable system serving subscribers in any area of St. Lucie County, whether incorporated or not incorporated, shall include the unincorporated area. Section 15. Technical Standards. Franchisee shall maintain and operate its cable system, at a minimum, in full compliance with all FCC technical standards and specifications. Franchisee shall further comply with each of the following requirements: A. All antennas, supporting structures, and outside plant used in operating and maintaining Franchisee's cable system within the County shall comply with all generally accepted industry standards and all applicable federal, state, county, laws, ordinances, rules, regulations and applicable lease agreements relating to tower structures and outside plant. B. All construction, installation and maintenance of Franchisee's cable system shall comply with the National Electrical Safety Code, the National Electrical Code, all applicable state and local laws and regulations, and accepted industry practices. 16 7/5/06 C. Franchisee shall not design, install, or operate its system in a manner that will interfere with the signals of any broadcast station, the electrical or telephone system located in any building, the cable system of another franchisee, or any individual or master antennas used for receiving television or other broadcast signals. D. Franchisee's cable system shall, at a minimum, meet or exceed all technical and signal quality standards of the FCC and the National Cable Television Association, including such standards as hereinafter may be adopted or promulgated. Section 16. Proof of Performance Tests. A. Franchisee shall perform, at its expense, the proof of performance tests as required by Section 1-5.5-38 of Ordinance No. 98-09 to demonstrate compliance with the requirements of that Section, this Franchise Agreement, FCC standards, and the standards of Good Engineering Practices for Measurements on Cable Systems, published by the National Cable Television Association. Upon written request, Franchisee will provide proof of performance test results within thirty (30) days to the County. Franchisee will provide the County at least ten (10) days advance written notice of when a proof of performance test is scheduled so that the County may have an observer present. Section 17. Area wide-Interconnection. A. Upon request by the County, Franchisee shall interconnect with any or all other cable systems located within the County or serving subscribers within the County for the purpose of sharing education and government access channels. 17 7/5/06 B. Upon receiving the request of the County to interconnect with cable systems, Franchisee shall, where it does not own the affected system or systems, immediately initiate good faith negotiations with the operators of the other affected system or systems in order that costs for construction and operation of the interconnection link may be shared equitably among the systems. Franchisee shall report to the County the results of such negotiation no later than sixty (60) days after the County's request. C. The Franchisee may be granted reasonable extensions of time to interconnect. The County shall rescind its request to interconnect upon petition by the Franchisee to the County, if the County finds that (1) the Franchisee has negotiated in good faith and has failed to obtain an approval from the system or systems of the proposed interconnection; or (2) the cost of the interconnection would be unreasonably high. D. Franchisee shall make all reasonable efforts to cooperate with any designated access organization, interconnection corporation, regional interconnection authority or City, County, state or federal regulatory agency which may be hereafter established for the purpose of regulating, financing, or otherwise providing for the interconnection of cable systems beyond the boundaries of the franchise area. Section 18. Access Channels and Facilities. A. Access Channel Capacity. Upon activation of the system and pursuant to Section 17( c), Franchisee shall provide to the County, at least one (1) and a maximum of two (2) activated downstream access channels on the system which the County may elect to use, in whole 18 7/5/06 or in part, for video and audio services for, educational and/or governmental access use on the following terms and conditions: 1. Upon request of the County, one access channel shall be dedicated exclusively for educational purposes. The educational channel shall be activated from a location agreed upon by the County and Franchisee. If prior to the effective date hereof an educational channel is being provided by a franchised cable operator, Franchisee shall be responsible for interconnecting to said channel at its sole cost. 2. Upon request of the County, Franchisee shall provide one dedicated government access channel and at the County's request, a second full-time activated downstream access channel and one dedicated activated upstream channel. The first upstream channel shall be activated from the County Administration building. If at any time the initial Channel is programmed during at least four (4) non-consecutive hours per day with locally produced programming, Monday through Friday for four (4) consecutive weeks, Franchisee shall, without charge, at the request of the County, provide the County with the second Access Channel. The County agrees that the programming on the first government access channel shall not fall below the specified level when the second channel is activated. Both parties agree the computer generated messaging shall not count toward the four (4) hours per day programming test. In the event the programming on the first government access channel falls below the specified level for a period of eight consecutive weeks, then County agrees that Franchisee shall have the right to deactivate the second access channel. 19 7/5/06 3. Upon request of the County, Franchisee agrees that it will cablecast all Board meetings live on the cable system if Franchisees system is interconnected with the originating provider where the systems are not interconnected, Franchisee shall obtain and air tapes of such meetings to all residents within three (3) days of the meeting as requested by the County. 4. In addition, Franchisee shall carry all education and government programming on the County education and government channel, including but not limited to material via interconnect, relay or such other technically feasible means at no cost to the County. 5. The access channels to be provided to the County as set forth above may be reallocated by the County to government or education access at the sole discretion of the County. 6. Franchisee agrees that all access channels will be provided to subscribers on the system as a part of basic service and that, if such information is supplied to Franchisee or known by Franchisee pursuant to its responsibilities under Section 18 hereof, Franchisee will publicize programming on the access channels as a part of any ordinary printed program listings it provides or will include access channel programming listings in any monthly program guide sent to subscribers, provided that information concerning access channel programming is provided to or becomes known to Franchisee within the time that other programmers are required to provide such information for inclusion in such program listings or program guide. B. Access Facilities, Equipment and Support. 20 7/5/06 1. Franchisee hereby agrees to provide to the County a financial grant in the amount of Seven Thousand Five Hundred Dollars ($7,500.00) upon the grant of the Franchise which amount shall not be passed through to subscribers. 2. Upon request of the County, franchisee further agrees to provide a grant in the amount to be determined by the County which may be passed through to subscribers on a monthly basis provided that other franchised operators are subject to an equivalent per Subscriber pass through. 3. At such time as the cable system makes advertising time available to commercial advertisers, Franchisee agrees it shall provide the County with time to advertise municipally sponsored events during reasonable viewing periods with a value of not less than that required of the franchised cable operators in the County The value of said time shall be calculated based on the lowest rates franchisee charges to any advertiser. 4. Franchisee hereby agrees that the facilities, equipment, services, and all other support to be provided by Franchisee pursuant to this Section 18 constitute capital costs which are required by the franchise to be incurred by Franchisee for public, educational, or governmental access facilities within the meaning of Section 622(g)(2)(C) of the Communications Act, 47 U,S.C. § 542(g) (2) (C); that such grant does not constitute a franchise fee within the meaning of Communications Act, Florida Communications Service Tax or other state law, Ordinance No. 98-09, or this Franchise Agreement; and that Franchisee hereby waives, and will not assert in any proceeding, any claim to the contrary, Section 19. Commercial Leased Access. 21 7/5/06 Franchisee shall provide commercial leased access channels as required by federal law. Section 20. Emer2enCy Use of Facilities. A. Franchisee shall comply with all FCC rules on emergency use of facilities, B. Franchisee shall provide standby power generating capacity at the cable system headend and capable of providing at least two (2) hours of emergency power supply, Standby batteries, capable of providing at least two (2) hours of emergency power, shall be installed in the cable distribution plant. Section 21. Lock-out Devices. Franchisee shall make available at reasonable charge to any residential subscriber, upon the request of such subscriber, a "parental guidance" or "lock-out" device which shall permit the subscriber, at his or her option, to eliminate the audio and visual transmissions from any channel reception to the extent technically feasible, Section 22. Closed-circuit Captionin2 for the Hearin2 Impaired.. Franchisee shall make available at a reasonable charge to any hearing-impaired residential subscriber, upon the request of such subscriber, any equipment beyond the subscriber's equipment capable of decoding closed-circuit captioning information for the hearing impaired or, in the alternative, shall provide any subscriber so requesting with information on the retail availability of such equipment. Section 23. Line Extension Policy. A. Upon request and payment of all applicable charges, and provided that the requesting person gives Franchisee access to his or her premises in order to furnish, maintain and 22 7/5/06 continue to offer service to that person, Franchisee shall, throughout the term of this Agreement, promptly furnish, maintain, and continue to provide all services distributed over the system to any person at his or her place of residence or commercial location within the Franchise area. Section 24. Cable Home Wirin2 Commitments. Franchisee will comply with all FCC rules regarding cable home wiring, as amended from time to time. Section 25. Franchise Fee. A. As of the Effective Date hereof, the Florida Communications Services Tax Act preempts Section _ of Ordinance No, 98-09. If, however, the Florida Communications Services Tax Law is amended or repealed so that a local franchising authority is allowed to impose and collect Franchise fees, then sixty (60) days after the effective date of any such statutory amendment or repeal, this section of the Agreement will become effective or at such time as stated in said amendment or repeal of the Florida Communications Services Tax Law. Unless otherwise provided by law, Franchisee shall collect and remit Franchise fees for the entire period following the effective date of the aforementioned change in law, even if some collection and payment must be done in arrears to allow for changes to the billing process. The intent of this section is to ensure the Village is not deprived of any Franchise fees to which it would otherwise be entitled following any change in applicable state law, B. Unless prohibited by law, in consideration of the privilege granted herein to use and occupy the Streets to own, construct, install, maintain and operate its cable system, Franchisee shall pay to the County a franchise fee equal to five percent (5%) of its gross revenues 23 7/5/06 as defined in Section 1-5,5-10 of Ordinance No. 98-09. If a change in law increases the maximum allowable percentage to an amount greater than that specified above Franchisee agrees to negotiate in good faith payment of that higher amount provided however, that any such increase agreed upon with the County may be imposed only after a public hearing at which both the public and Franchisee are allowed to comment on the impact of the higher fee. Franchisee will pay to the County such higher amount effective with the next available billing cycle in which the higher charge may be placed on subscribers bills. Franchisee may calculate gross revenues for purposes of determining the franchise fee owed on either a cash or accrual basis, provided, however, that Franchisee shall notify the County at least 90 days in advance of any change in the method used, and provided, further, that any such change shall not result in Franchisee's failure to recognize or include any Gross Revenue in its calculation of franchise fee owed to County. If Franchisee calculates gross revenues on an accrual basis, Franchisee may subtract its actual bad debt expense determined in accordance with Generally Accepted Accounting Principles for the relevant period from gross revenues, provided, however, that any bad debt subsequently collected shall be included in gross revenues in the period in which the bad debt is collected, C. Franchisee shall pay the franchise fee to the County in full compliance with the requirements set forth in Section 1-5.5-29 of Ordinance No. 98-09. The first payment shall be remitted to the County no later than thirty (30) days after commencement of service to subscribers D. The quarterly statements required to be filed by the Franchisee with the County pursuant to Ordinance No. 98-09 shall be audited and reported on by certified public accountant 24 7/5/06 and certified as true and correct by a duly authorized financial officer of Franchisee. Franchisee shall bear the cost of the preparation of such statements. E. The acceptance by the County of any payment from Franchisee of the franchise fee shall not constitute a release or an accord and satisfaction of any claim the County may have against Franchisee for performance of any of its obligations under Ordinance No. 98-09, this Franchise Agreement, or local, state or federal law, including, without limitation, Franchisee's obligation to pay the proper franchise fee amount owed, subject, however, to applicable statute of limitations, if any. F. Following the expiration or the termination for any reason of its franchise, Franchisee shall pay the franchise fee owed as of the date that its operations ceased within ninety (90) calendar days of ceasing such operations. Such payment shall be accompanied by a gross revenues audit report prepared by a certified public accountant showing the revenues received by Franchisee since the end of the previous fiscal year, G. Franchisee expressly agrees that: (i) the franchise fee payments to be made pursuant to this Section shall not be deemed to be in the nature of a tax; (ii) such franchise fee payments shall be in addition to any and all taxes of a general applicability and not applicable solely to cable television operations within the County or other fees or charges which Franchisee shall be required to pay to the County or to any state or federal agency or authority, as required herein or by law, all of which shall be separate and distinct obligations of Franchisee; (iii) Franchisee shall not have or make any claim for any deduction or other credit of all or any part of the amount of said franchise fee payments from or against any of said County taxes or other fees 25 7/5/06 or charges of general applicability which Franchisee is required to pay to the County, except as agreed herein or required by law; (iv) Franchisee shall not apply nor seek to apply all or any part of the amount of said franchise fee payments as a deduction or other credit from or against any of said County taxes or other fees or charges of general applicability, each of which shall be deemed to be separate and distinct obligations of Franchisee; (v) Franchisee shall not apply or seek to apply all or any part of the amount of any of said taxes or other fees or charges of general applicability as a deduction or other credit from or against any of its franchise fee obligations, each of which shall be deemed to be separate and distinct obligations of Franchisee; and (vi) the franchise fee specified herein is the minimum fair market value for the grant hereunder of a franchise for use of the Streets, including all public easements, public rights-of-way and other entitlement to use, occupy or traverse public property, for the purpose of operating a cable television system. Section 26. Reports and Records. Unless prohibited by law, Franchisee shall furnish the County with all of the information as required under Section 1-5.5-30 and 1-5.5-41 of Ordinance No. 98-09. Section 27. Ri2ht to Inspect Financial Records and Facilities. A. Unless prohibited by law, Franchisee shall maintain a complete set of books and records, including plans, contracts, engineering, accounting, financial, statistical, customer and service records as required under Section 1-5.5-30 and 1-5.5-41 of Ordinance No, 98-09. B. Unless prohibited by law, pursuant to Ordinance No. 98-09, the County shall have the right to inspect, at Franchisee's local office, the books and records specified in 26 7/5/06 subsection 27(a) hereof and such other records as may be required by the County to perform its regulatory responsibilities under Ordinance No, 98-09 or applicable federal or state law. The County agrees to carry out any such inspection during Franchisee's normal business hours and upon reasonable notice. Access by the County to perform its regulatory responsibilities pursuant to this agreement or applicable law to Franchisee's books and records shall not be denied on grounds that such books and records contain proprietary or confidential information, C. The County shall accord all books and records that it inspects under this Section the degree of confidentiality such books and records are entitled to under federal and state law. Franchisee's books and records shall not constitute public records, except to the extent required by federal and state law. To the extent Franchisee considers any books or records that it is required to produce to be confidential or otherwise protected from public disclosure, Franchisee shall designate which documents it views as protected and provide a written explanation to the County of the legal basis for Franchisee's claim of protection, D. Pursuant to Section 1-5.5-41 of Ordinance No, 98-09, the County shall have the right to inspect Franchisee's facilities and property during Franchisee's normal business hours and upon reasonable notice, Section 28. Customer Service Requirements. A. Franchisee agrees to comply with each of the customer service requirements set forth in Section 1-5.5-41 of Ordinance No, 98-09 or any stricter standard set forth in a bulk agreement. 27 7/5/06 B. For 30 days after notice of retiering of the existing channel line up resulting in a different tier of service being offered, a customer may obtain changes in service tiers at no additional charge. Section 29. County Purchase of Cable System. The County may, upon the recommendation of the County Administrator and the approval of the Board, acquire ownership of and operate Franchisee's cable system in accordance with Section 1-5.5-55 of Ordinance No. 98-09. Section 30. Modification of Franchise. Franchisee shall file an application with the County for any modification of its franchise pursuant to Section 1-5.5-11 of Ordinance No. 98-09. The application shall fully conform with each of the requirements set forth in that Section that apply to applications for modification. Section 31. Transfer of Franchise. A. Franchisee shall not directly or indirectly assign, sell or transfer its franchise, or any right, title, or interest in same, this Franchise Agreement, or its cable system, nor shall any ownership interest or any other form of control of Franchisee or any lawful successor be transferred, assigned, directly or indirectly, without prior written notice to and approval of the County. In determining whether to approve a transfer, the County will consider the factors set forth in Section 1-5.5-15 of Ordinance No, 98-09. B. Franchisee shall file an application to transfer its franchise or to transfer control of Franchisee in full compliance with Sections 1-5.5-11 and 1.5-5-15 of Ordinance No, 98-09. Section 32. Procedures for ReQuestin2 Approval of Transfer. 28 7/5/06 In addition to the requirements set forth in Sections 1-5.5-11 and 1-5.5-15 of Ordinance No. 98-09, the following procedures shall be followed by Franchisee in requesting the County's consent to transfer its franchise or to transfer control of Franchisee. A. At least one hundred twenty (120) calendar days pnor to the contemplated effective date of a transfer, Franchisee shall submit to the County an application for approval of the transfer. Such application shall include the following: 1. A statement of the reason for the contemplated transfer. 2. The name, address and telephone number of the proposed transferee. 3. A detailed statement of the corporate or other business entity organization of the proposed transferee, including but not limited to the following: (a) The names, business addresses, state of residence and country of citizenship of all general partners and/or corporate officers and directors of the proposed transferee. (b) The names, business addresses, state of residence and country of citizenship of all persons and entities having, controlling, or being entitled to have or control ten percent (10%) or more of the ownership of the proposed transferee and the respective ownership share of each such person or entity. (c) The names and addresses of any subsidiary of the proposed transferee and of any other business entity owning or controlling in whole or in part or owned or controlled in whole or in part by the proposed transferee. 29 7/5/06 (d) A detailed and complete financial statement of the proposed transferee, prepared by a certified public accountant if audited statements were made, and if not, by a duly authorized financial officer of the proposed transferee, for the three (3) fiscal years immediately preceding the date of the request for transfer approval, and a letter or other acceptable evidence in writing from a duly authorized officer of the proposed transferee setting forth a clear and accurate description of the amount and sources of funding for the proposal transaction and its sufficiency to provide whatever capital shall be required by the proposed transferee to construct, install, rebuild, maintain and operate the proposed system in the County. If the corporate or business entity organization of the proposed transferee has not been in existence for a full three (3) years, the proposed transferee shall submit a certified financial statement for the period of its existence. (e) A description of all previous experience of the proposed transferee in operating cable television systems and providing cable television services or related or similar services, including a statement identifying, by place and date, any other cable television franchisees) awarded to the proposed transferee, its parent, subsidiaries, or affiliates; the status of said franchisees) with respect to completion thereof; the total estimated cost of completion of such system(s); and a summary of the amount of the proposed transferee's and its parent's or subsidiary's resources committed to the completion thereof. (f) Upon request from the County, a detailed pro forma financial plan describing for each remaining year of the franchise, the projected number of subscribers, rates, all revenues, operating expenses, capital expenditures, depreciation schedules, income statements, 30 7/5/06 . d d Where the transfer is part of a larger transaeMn an and statement of sources and uses of fun s. such inforroation is not prepared for the singlc system in the County, the proposed transferee may provide such inforroation on a consolidated basis including the system in the County, but sha\\ provide inforroation on the size of the County system, in terros of number of subscribers, relalive to the transaction, so that pro rata estimates may be made. (g) A detailed descriplion of the proposed plan of operalion of the proposed transferee, which sha\\ include, but not be limited to the fo\\owing: (i) A detailed map indicating a\\ neW areas proposed to be served, a proposed time schedule for the installation of all equipment necessary to becomc operational throughout the neW areas to be served, and the projected total cost for neW construction of the system. (ii) A statement or schedule setting forth all proposed classifications of rates and charges to be made against subscribers and all rates and charges and to each of any said classifications, including installation charges, service charges, special, extraordinary, or other charges, 4. 5. when Franchise IS Upon request, the terros and conditions ofthe proposcd transfer. For porposes of this Section 32, nO assignment, transfer or sale shall occur transferred or sold to any company owned, managed or controlled by L\testream Communications Corporation, any of its wholly-owned subsidiaries, John J. Rigas or any member of his immediate family or the assets or stock of the Company are transferred to a financial institution as security for refinancing purposes, provided, however, that Company shall 31 7/5/06 reasonably believe that the transfer or sale shall not materially adversely affect the ability of the Transferee to comply with the provisions of this Franchise. Notwithstanding anything to the contrary, Franchisee shall provide notice of any such transactions to the County Administrator no less than sixty (60) days prior to the effective date of such transaction, Section 33. Renewal of Franchise. The provisions of Sections 1-5.5-11, 1-5.5-12 and 1-5.5-13 of Ordinance No, 98-09 and Section 626 of the Cable Act (47 U.S.C. 546) shall govern any and all proceedings to renew this franchise. If Franchisee decides to initiate a formal renewal process in accordance with Section 626(a)-(g) of the Communications Act, 47 U.S.c. § 546(a)-(g), it and the County must comply with each of the requirements in the Communications Act as well as the additional requirements set forth in Section 1-5,5-13 of Ordinance No. 98-09. Section 34. Rates. A. Nothing in Ordinance No. 98-09 or this Franchise Agreement shall prohibit the County from regulating rates for cable service, installation, disconnection, and equipment rental to the full extent permitted by and consistent with state and federal law. B. Subject to applicable law, Franchisee further agrees that it shall not increase rates or charges for basic cable service, installation, disconnection, or equipment rental without at least thirty (30) days prior written notice to subscribers and the County. D. Pursuant to Section 1-5.5-44 of Ordinance No. 98-09, Franchisee shall at all times charge nondiscriminatory rates throughout the County. Section 35. Enforcement Remedies. 32 7/5/06 A. Liquidated Damages. Because the County may suffer damages from any violation by Franchisee of this Agreement or of Ordinance No. 98-09, which damages may be difficult to quantify, the County and Franchisee agree to the following schedule of liquidated damages: 1. For failure to provide product, services and system capabilities required by Sections 13, 14, 17, 18 and 23 hereof, unless the County specifically approves a delay caused by the occurrence of conditions beyond Franchisee's control, Franchisee shall pay One Thousand Dollars ($1,000,00) per day for each day, or part thereof, the deficiency continues. 2. For failure to comply with the provisions of Section 1-5.5-41 of Ordinance No. 98-09 or Section 28 of this Franchise Agreement, Franchisee shall pay the amounts set forth in Section 1-5.5-41 of the County Code. 3. For failure to comply with any other provision of Ordinance No.98-09, failure to comply with any other provision of this Franchise Agreement, or failure to comply with any lawful order of the County within thirty (30) days of receipt of notice of such non- compliance from the County, Franchisee shall pay One Hundred Dollars ($100,00) per day for each day, or part thereof, per violation that such non-compliance continues. B. Before assessing liquidated damages against Franchisee, the County shall give Franchisee written notice of the violation and its intention to assess such damages, which notice shall contain a specific description of the alleged violation. Franchisee shall cure said violation no later than thirty (30) days of the date of receipt of the notice. The County may collect liquidated damages owed, either through draw-down of the security fund as provided in Section 11 of this Agreement, or through any other means allowed by law, 33 7/5/06 C. Revocation or Termination of Franchise. Franchisee's franchise is subject to revocation pursuant to Section 1-5.5-45 of Ordinance No. 98-09 for any of the reasons set forth therein. In the event the County exercises its right to revoke the franchise, the procedures set forth in Section 1-5.5-45 of Ordinance No. 98-09 shall apply. Section 36. Written Notice of Acceptance. No later than ten (10) days prior to the date the Board is scheduled to consider the resolution approving the grant of this franchise, Franchisee shall provide the County with written acceptance of all the terms and conditions of this Franchise Agreement. Franchisee's failure to comply in full with this Section shall result in postponement of the Board's consideration of the matter until such acceptance is received. Section 37. Execution in Counterpart. This Franchise Agreement may be executed in counterpart, IN WITNESS OF THE FOREGOING, the parties have set their hands and seals the day and year first written above. ATTEST: BOARD OF COUNTY COMMISSIONERS, ST. LUCIE C07LORJDA BY ~~ (l--1J CHAI AN BY: 34 7/5/06 AGREED TO AND ACCEPTED BY FRANCHISEE: I -. r~ l¿k k., BY: DATE: rr h. ., If.) I. WITNESSES: ry(~ Q (J(tUL- AS 0 "F CHISEE" SECTION 3. Repeal of Conflictin2 Resolution. All resolutions or parts of resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. SECTION 4. Savin2S. All rates, fees, charges and financial obligations previously accrued pursuant to any ordinances, resolutions or other agreements entered into prior to this Resolution shall continue to be due and owing until paid. 35 7/5/06 SECTION 5. Severability. If any part, section, subsection, or other portion of this Resolution or any application thereof to any person or circumstance is declared void, unconstitutional or invalid for any reason, such part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this Resolution, and all applications thereof not having been declared void, unconstitutional or invalid, shall remain in full force and effect. The County declares that no invalid or prescribed provision or application was an inducement to the enactment of this Resolution, and that it would have enacted this Resolution regardless of the invalid or prescribed provision or application. SECTION 6. Applicable Law. This Resolution shall be construed in accordance with the law of the State of Florida and is subject to applicable local, state and federal law. SECTION 7. Effective Date. This Resolution shall take effect immediately upon passage by the Board of County Commissioners and signature by the Chairman. PASSED by the Board of County Commissioners this~ day of C}A_~ 2006. SIGNED by the Chairman this J1th day of ~ ,2006. ~9-Jl 36 ATTEST: 06-204 d . oc 7/5/06 , 37