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HomeMy WebLinkAboutOrdinance 14300;i'; ~'`;~~. r ORDINANCE NO. /~~ ~~ AN ORDINANCE GRANTING A FRANCHISE TO WIDEOPENWEST TEXAS, LLC FOR USE OF PUBLIC RIGHTS-OF-WAY IN THE CITY OF FORT WORTH FOR THE PURPOSE OF CONSTRUCTING, MAINTAINING AND OPERATING A CABLE TELEVISION SYSTEM; REQUIRING EXECUTION OF A FRANCHISE AGREEMENT BETWEEN THE CITY OF FORT WORTH AND WIDEOPENWEST TEXAS, LLC REGARDING CONDITIONS, AND REQUIREMENTS RELATED TO THE USE OF PUBLIC RIGHTS-OF-WAY IN THE CITY OF FORT WORTH AND TO THE CONSTRUCTION, MAINTENANCE AND OPERATION OF A CABLE TELEVISION SYSTEM AND TO THE PROVISION OF CABLE SERVICES TO RESIDENTS OF THE CITY OF FORT WORTH AND TO REASONABLE COMPENSATION TO THE CITY OF FORT WORTH FOR THE USE OF THE PUBLIC RIGHTS-OF- WAY; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. The following statements are true and correct and constitute the basis upon which the Crty Council of the Crty of Fort Worth ("City") has adopted this Ordinance A. WideOpenVVest Texas, LLC ("Company") wishes to construct a cable television system and to provide cable television services m the City of Fort Worth. In accordance with the City Charter and ordinances of the City, Company has applied for a franchise from the City m order to carry out those purposes. B. Company is a Delaware limited liability company wholly owned by WideOpenWest Texas, Inc., a Delaware corporation. WideOpenWest Texas, Inc is wholly owned by WideOpenWest Holdings, LLC, a Delaware limited liability company C. The Crty has reviewed Company's franchise application and determined that the granting of a franchise, on the terms and conditions set forth herein, will assist the cable-related needs and interests of the community, including, but not limited to, the provision of necessary competition m cable services and participation m the provision of valuable public, educational and governmental programming. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS• Ordinance Section 1. The City hereby grants Company a franchise to erect, construct, install and maintain a cable television system in, over, under, along and across the public rights-of--way and to transact business related to the provision of cable services over such cable television system `~. a ~~ ri ~ ~'?,. s ~ ~.. i subject to the execution by Company, WideOpenWest Texas, Inc. and WideOpenWest Holdings, LLC of a Franchise Agreement in the form attached hereto as Exhibit 1, which is hereby made a part of this Ordinance for all purposes. Section 2. In accordance with and as required by Section 2 of Chapter XXV of the City's Charter, the City Secretary is hereby directed to publish this Ordinance in its entirety once each week for four (4) consecutive weeks within a penod of thu•ty (30) days following adoption by the City Council m the official newspapers of the City Company shall pay for or reimburse the Crty for all expenses incurred from such publication. Section 3. This Ordinance shall be in full force and effect following (i) its adoption, and (ii) its publication m accordance with Section 2, and (iii) m accordance with Section 1, the execution of the Franchise Agreement attached hereto as Exhibit 1 ADOPTED ~-/S'~ L-1Z~69 Date M & C Number EFFECTIVE DATE ~' ~'6 " D d APPROVED AS TO FORM AND LEGALITY By• Peter Vaky Assistant Crty Attorney City of Fort Worth 2 Exhibit 1 FRANCHISE AGREEMENT The following statements are true and correct and constitute the basis upon which the City of Fort Worth has executed this Franchise Agreement: A. The Crty Council of the Crty of Fort Worth has adopted an ordinance that grants WideOpenWest Texas, LLC a franchise to erect, construct, install and maintain a Cable Television System in, over, under, along and across the Public Rights-of--Way in the City of Fort Worth and to transact business related to the provision of cable services over such Cable Television System ("Franchise Ordinance"), subject to the execution by Company, WideOpenWest Texas, Inc and WideOpenWest Holdings, LLC of this Franchise Agreement. B. In accordance with the Franchise Ordinance, WideOpenWest Texas, LLC desires to enter into this Franchise. WideOpenWest Texas, Inc and WideOpenWest Holdings, LLC consent to WideOpenWest Texas, LLC's entering into this Franchise and desire, jointly and severally, to guarantee unconditional performance by WideOpenWest Texas, LLC of its duties and obligations under this Franchise Agreement. Agreement 1. DEFINITIONS. Capitalized terms used m this Franchise and not otherwise defined within this Franchise shall have the following meanings Act shall mean the federal Communications Act of 1934, as amended. Affiliate shall mean any individual, partnership, association, ~omt stock company, limited liability company, trust, corporation, or other person or entity who owns or controls, or is owned or controlled by, or is under common ownership or control with, the entity m question. Cable Business shall mean the provision by Company of Cable Services solely by means of Company's Cable Television System. Cable Services shall mean only • The one-way transmission to subscribers of (i) Video Programming or (ii) other programming services, such as digital audio, by which is meant Page 1 Cable Franchise Agreement with WideOpenWest Texas, LLC information which Company makes available generally to all subscribers of Company's Cable Services, such as digital cable radio service; and • Subscriber interaction, if any, including, but not limited to, that which is used for the selection or use of (i) Video Programming or other programming services, (ii) various on-screen options, (iu) Enhanced Cable Services, (iv) game channels, and (v) interactive services, such as the ordering of merchandise and the downloading of programs or data access, and • Enhanced Cable Services, and • Institutional Network Services. Cable Television System or 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 Services which are provided to multiple subscribers within the Crty, but shall not include (i) a facility that serves only to re-transmit the television signals of one or more television broadcast stations, (ii) a facility that serves subscribers without occupying any portion of the Public Rights-of--Way; (iii) a facility of a common Garner which is subject, m whole or in part, to the provisions of Title II of the Act, except that, other than for purposes of Section 621(c) of the Act, such a facility shall be considered a Cable Television System to the extent that such facility is used m the transmission of Video Programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services, (iv) an open video system that complies with Section 653 of the Act; or (v) any facilities of any electric utility used solely for operating its electric utility systems. Company shall mean WideOpenWest Texas, LLC City shall mean the area within the corporate hmrts of the Crty of Fort Worth, Texas. Complaint shall mean a telephone call or written communication from a customer notifying Company of a problem relating to Company's bilking or bilking practices, Company's equipment, picture quality, failure to receive one or more channels, a change m Company's practice or policy, Company advertising or other business practice, the conduct of a Company employee or contractor, or the failure of Company or a service representative to comply with customer service regulations. Drop shall mean the cable or wire that connects the distribution portion of Company's Cable Television System to a customer's premises. Enhanced Cable Services shall mean (i) information services, (ii) Internet protocol (IP) telephony; (iii) high speed data service; and (iv) Internet access and Internet service, such as that of an Internet service provider Page 2 Cable Franchise Agreement with WideOpenWest Texas, LLC Facilities shall mean all duct spaces, manholes, poles, conduits, underground and overhead passageways, and other equipment, structures and appurtenances and all associated transmission media m the Public Rights-of--Way used by Company m the provision of Cable Services. Franchise shall mean the authorization issued to Company by the City for the construction and operation of Company's Cable Television System, as provided by Trtle VI of the Act and pursuant to and in accordance with the Franchise Ordinance and this Franchise Agreement. FCC shall mean the Federal Communications Commission. Gross Revenue shall mean all of the amounts earned or accrued by Company, or by an entity m any way affiliated with Company, m whatever form and from all sources which are in connection with or attributable to (i) the operation of the Cable Television System with m the City's corporate hmrts or (ii) Company's provision of Cable Services wrthm the City's corporate hmrts. Gross Revenue shall include, but not be limited to, all subscriber and customer revenues earned or accrued net of bad debts, mciudmg revenues for (i) basic cable services, (ii) additional tiers of service; (iii) premium services, (iv) pay-per-view programs and services, (v) program guides, (vi) cable modem, high speed data, IP telephony and Internet access and services (but not including any revenue collected on behalf of or paid over to any third party directly providing Internet-related services through the System), (vii) fees for the installation or disconnection of Cable Services, (vii) fees for service calls, (viii) fees for the provision, sale, rental or lease of converters, remote controls, additional outlets and other customer premises equipment; (ix) revenues from the use of leased access channels, (x) advertising revenues from the Cable Television System, and (xi) revenues, commissions and other sums received as compensation from home shopping programming and other entities providing programming used on the System. Advertising revenues and other revenues whose source cannot be identified with a specific subscriber shall be allocated to the Crty based upon the percentage of subscribers residing in the City compared to that served from the head-end serving the City In calculating Gross Revenue, revenue received from subscribers shall be allocated to the Crty based solely upon whether the location where Cable Services are provided is located within the City's corporate hmrts, and not by any other method of allocation. Institutional Network or I-NET shall mean the fiber optic communications network described m Sections 5.3 et seq , 5 4 and Exhibit "B" to be constructed and operated by Company for the provision of Institutional Network Services to I- NET Users. Institutional Network Services shall mean the provision of usable bandwidth capacity to I-NET Users through fiber optic fines for applications including, but not limited Page 3 Cable Franchise Agreement with WideopenWest Texas, LLC to, (i) two-way dedicated voice, data, video and telephony channels connecting and interconnecting facilities owned, leased or` used by the City, schools, counties, road commissions or other units of state or local government; (ii) computerized traffic control systems for coordinated traffic control on an area-wide basis, (ui) Supervisory Control and Data Acquisition (SCADA) systems for municipally owned water, sewer, gas and electric systems (including street lighting systems), (iv) interconnection of facilities serving police, fire and other public safety systems, (v) interconnection of libraries and other government buildings for the one-way or two-way interchange of video signals, and (vi) local area networks or wide-area networks connecting governmental buildings, such as for geographical informational systems purposes. I-NET User shall mean the City and any school or unit of state or local government designated by the City to receive Institutional Network Services under this Franchise Agreement. Normal Operating Conditions shall mean those service conditions which are wrthm the control of Company Those conditions which are not wrthm the control of Company include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are wrthm the control of Company include, but are not limited to, special promotions, pay-per-view events, rate increases, regular or seasonal demand periods, changes m the billing cycle, changes m the form of bills and other bilking matters, changes m channel lineups or services that are within Company's control, and repairs, rebuilds, maintenance and upgrade of the cable system including computer software and hardware. PEG Channels shall mean the public channels, educational channels and government channels, mcludmg leased access channels, provided by Company on its Cable Television System under Section 5 1 et seq of this Franchise Agreement. PEG User shall mean a person or entity authorized to operate or use a PEG Channel, mcludmg the City If several persons or entities share m the operation of a PEG Channel, each such person or entity shall be a separate PEG User Public Rights-of--Way shall mean all dedicated public streets, highways, alleys and rights-of--way m the Crty, but shall not include any property of the City that is not a dedicated public street, highway, alley orright-of--way Remote Signal Input Points shall mean Signal Input Points for PEG programming that are used intermittently (but repeatedly) from the same location, such as, byway of example only and without limitation, from a community center or a high school football field. Service Area shall mean any area of the Crty, as specifically depicted and/or described m Exhibit "A" of this Franchise, where Company is required to provide Cable Page 4 Cable Franchise Agreement with WideOpenWest Texas, LLC Service to a subscriber located within that area on demand and without any kind of Drop charge or other kind of charge for the extension of the cable, line or wire that connects the subscriber's premises to Company's System. Signal Input Points shall mean the facilities that connect a Signal Input Point Site to Company's System and thereby provide the connection by which I-NET Users provide their programming to Company for immediate retransmission to subscribers. Telecommunications Service shall mean the offering of any type of telecommunications service, other than Cable Services, to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used, by means of the transmission, between or among points specified by the user, of information of the user's choosing, without change m the form or content of the information as sent and received. Transfer or Transferred shall mean, m addition to supplements set forth m Section 14 of this Franchise, (i) any form of sale, conveyance, assignment, lease, sublease or merger involving Company as to this Franchise or the Cable Television System or (ii) any change m the effective control of Company, such as, by way of example only, that described m 47 C.F.R. § 76 501 et seq and the notes thereto Video Programming shall mean programming provided by, or generally considered comparable to programming provided by, a television broadcast station. 2. GRANT OF RIGHTS. 2.1. General Use of Public Rights-of--Way for Provision of Cable Services. Subject to the terms and conditions set forth in this Franchise Agreement and the City Charter and ordinances, the Crty hereby grants Company the right to erect, construct, install and maintain a Cable Television System m, over, under, along and across the Public Rights-of--Way and to provide Cable Services and transact a Cable Business in the Crty Company shall build the System m phases and m accordance with the construction schedule set forth m Exhibit "A", which is attached hereto and hereby made a part of this Franchise Agreement for all purposes. Company hereby acknowledges and agrees that this Franchise Agreement does not allow Company to provide any Telecommunications Service m or through the Crty If Company or an Affiliate of Company contends that Company or an Affiliate of Company is permitted or intends to provide any Telecommunications Service m or through the City, Company shall first notify the Crty m writing and shall obtain a franchise or other permit or agreement for the use of the Public Rights-of--Way, if required by the City Page 5 Cable Franchise Agreement with WideOpenWest Texas, LLC 2.2. Scope. 2.2.1. Citywide Service. Subject to Section 7 17 of this Franchise Agreement, Company agrees to provide Cable Services to any and all persons requesting such Cable Services at any location within the City 2.2.2. New Developments. Company shall install its System (excluding only Drops to individual dwelling units) m any new subdivision and development m the City by (i) the date on which electric facilities are installed m such subdivision or development or (ii) the date on which telephone facilities are installed m such subdivision or development, whichever is earlier, m such a manner that Company shall be capable of providing Cable Services to any dwelling unit m such subdivision or development solely by the construction of a Drop to the subscriber premises when the subscriber's dwelling is constructed. 2.3. Nonexclusive. This Franchise and all rights granted to Company herein are strictly nonexclusive. The City reserves the right to grant other and future Cable Television System franchises to other persons and entities as the Crty deems appropriate. This Franchise does not establish any priority for the use of the Public Rights-of--Way by Company or by any present or future franchisees or other permit holders. In the event of any dispute as to the pnonty of use of the Public Rights-of--Way, the first priority shall be to the public generally, the second pnonty to the Crty m the performance of its various functions, and thereafter, as between franchisees and other penmt holders, as determined by the City in the exercise of its powers, including the police power and other powers reserved to and conferred on it by the State of Texas. If the City awards a cable franchise to another entity on terms and conditions which cause a material competitive disadvantage that will lead to material financial hardship to Company, then Company may petition the City Council by (i) describing the manner m which the proposed cable franchise will cause a material competitive disadvantage to Company and (ii) establishing, with clear and concise financial projections, the manner m which Company will suffer material financial hardship as a result of such disadvantage. The Crty Council shall promptly hold a hearing providing due process on Company's petition, and if the City Council finds that (i) the proposed franchise will cause a materal competitive disadvantage to Company and (ii) Company has established, with clear and concise financial pro~echons, that such disadvantage will lead to material financial hardship to Company, then the City Council will remedy such disadvantage or hardship m a manner which the Crty Council, m its sole discretion, deems least harmful (or most beneficial) to the City and its residents. Company hereby Page 6 Cable Franchise Agreement with WideOpenWest Texas, LLC agrees and acknowledges that technological issues or changes or advances m technology shall not constitute the basis for Company to assert that it is at a competitive disadvantage, and Company shall not be entitled to the remedies set forth m this paragraph as a result of the City's granting or proposing to grant a cable franchise to another entity whose cable system employs more advanced and/or more desirable technology than Company's System. 2.4. Other Permits. This Franchise does not relieve Company of any obligation to obtain permits, licenses and other approvals from the City necessary for the construction,. repair or maintenance of the System or the provision of Cable Services.. 2.5. Bonds. 2.5.1. During Construction of the System. Prior to the initiation of construction on Company's Cable Television System and for the duration of the scheduled construction penod outlined m Exhibit "A", Company, at Company's sole cost and expense, shall obtain, deliver to the City and maintain the following bonds, executed by a corporate surety authorized to do business in the State of Texas and acceptable to the City• (i) a performance bond in the amount of Five Hundred Thousand Dollars ($500,000 00) that guarantees satisfactory compliance by Company with all requirements, terms and conditions of this Franchise, including, but not limited to, recovery by the Crty of any damages, losses, costs and expenses sustained or suffered by the City due to Company's failure to construct and activate its Cable Television System m a satisfactory and timely manner and m accordance with this Franchise and (ii) a payment bond that guarantees full payments to all persons, firms, corporations or other entities with whom Company has a direct relationship pertammg to the construction of its Cable Television System. Upon full completion of the Cable Television System and complete payments to all persons, firms, corporations or other entities with whom Company has or had a direct relationship pertammg to the construction of its Cable Television System, Company shall notify the City m writing and, after receiving the City's written approval, which shall not be unreasonably denied or withheld, Company shall no longer be required to maintain these bonds. 2.5.2. After Completion of Construction of System. After Company has completed its Cable Television System, Company shall be required to obtain, deliver to the City and maintain bonds as follows Prior to the commencement of any construction work m the Public Rights-of--Way in the Crty that requires a cut, opening or other excavation, Company shall deliver to the City bonds executed by a corporate surety authorized to do business in the State of Texas and acceptable to the Crty in the same amount as the full cost of Page 7 Cable Franchise Agreement with WideOpenWest Texas, LLC work under the construction contract or construction prod ect that will be performed m the City's corporate hmrtsi The bonds shall guarantee (i) satisfactory compliance by Company with all requirements, terms and conditions of this Franchise Agreement and (ii) full payments to all persons, firms, corporations or other entities with whom Company has a direct relationship for the performance of such construction, maintenance or repairs. 2.5.3. Required of Company's Contractors. If any construction, maintenance and repair work is undertaken by a contractor of Company on or to Company's Cable Television System, either during or after completion of the System, Company shall require such contractor to deliver to Company bonds in the same amount as the full cost of work under the construction contract or construction project that will be performed by the contractor in the City's corporate limits. The bonds shall guarantee (i) the faithful performance and completion of all construction, maintenance or repair work m accordance with the contract between Company and the contractor and (ii) full payment for all wages for labor and services and of all bills for materials, supplies and equipment used m the performance of that contract. Such bonds shall name both the City and Company as dual obligees. 2.5.4. General Requirements for All Bonds. All bonds required hereunder shall be m a form approved by the City and executed by a corporate -surety authorized to do business m the State of Texas and acceptable to the City In addition, all bonds required hereunder shall be endorsed to provide that such bonds shall not be canceled or non-renewed by the surety without at least sixty (60) days' advance written notice to the City 3. FEES AND PAYMENTS TO CITY 3.1 Franchise Fee. Company shall pay the City throughout the term of this Franchise an amount equal to five percent (5%) of Company's Gross Revenue ("Franchise Fee") 3.1 1 When Due. Company shall pay the Franchise Fee to the City on a calendar quarterly basis. The Franchise Fee shall be due within forty-five (45) days following the last day of each quarter Page 8 Cable Franchise Agreement with WideopenWest Texas, LLC 3.1.2. Accompanying Report. Company shall submit with its Franchise Fee payment a written report m a form acceptable to the City and verified by an officer of the Company that summarizes Company's Gross Revenue for the previous quarter and computes the amount of the Franchise Fee due the City for that quarter 3.1.3 Audits. The City may audit Company at any time to verify the accuracy of Franchise Fees paid to the City Company shall pay any additional amounts due the City as reported m any City audit within thirty (30) days following the City's submission to Company of an invoice for such sum. If this amount exceeds ten percent (10%) of the Franchise Fee which the audit shows should have been paid to the City for the period in which the audit covered, Company shall pay the City's costs for the audit. Otherwise, the City shall pay its own costs for the audit. 3.1 4 Allocation for Bundled Services. If Company bundles, ties or combines Cable Services (which are subJect to the Franchise Fee under this Franchise) with non-Cable Services (which are not subJect to the Franchise Fee under this Franchise) and assesses a subscriber only one fee, the combined revenue therefrom shall be allocated to Cable Services to the full extent which would have been charged by Company if the subscriber had received only Cable Services. In no event shall the amount allocated to Cable Services under the foregoing calculation exceed (i) the total amount of combined revenue actually received by Company (in which case Section 3 1 5 shall apply) or (ii) the net revenue derived when mandatory tariff rates (if any) imposed by a governmental authority for components of the bundled, tied or combined services are deducted from the combined revenue. Notwithstanding any interpretation to the contrary, this Franchise does not authorize Company to vary or alter any payments or amounts of compensation to the City which may be dictated by another franchise, ordinance, agreement or by applicable law and are related to use of the Public Rights-of--Way m the provision of non-Cable Services m the City 3.1.5. Allocation for Discounted Services. If Company offers its subscribers any kind of discount if such subscribers receive both Cable Services (which are subJect to the Franchise Fee under this Franchise) and non-Cable Services (which are not subJect to the Franchise Fee under this Franchise), the discount shall be applied proportionately to Cable Services and non-Cable Services. For example, assume that a subscriber's monthly charge for Cable Services alone would be $40; for local telephone service alone, $30; and for long-distance telephone service alone, $30, for a total Page 9 Cable Franchise Agreement with WideOpenWest Texas, LLC of $100 If Company offers a single rate to the subscriber for taking all three services from Company that, in effect, amounts to a twenty percent (20%) discount from the rates that would apply to the services if purchased individually, the aggregate discount in this example is $20 For computation of the Franchise Fee, that $20 discount would be applied pro rata so that Gross Revenue hereunder would be deemed to be $32 (a 20% dlscount from the $40 fee for Cable Services) The result would be the same if Company offers a specific dollar discount for any services provided, such as, for example, a $20 discount for local telephone services offered on the condition that the subscriber also take Cable Services at the standard $40 rate. 3.2. Other Payments. In addition to the Franchise Fee, Company shall pay the Clty all sums which may be due the Clty for property taxes, license fees, permit fees, or other taxes, charges or fees that the Crty may from time to time impose. Company shall reimburse the City for publication of this Franchise as required by the City's Charter 3.3 Interest. All sums not paid when due shall bear interest at the rate often percent (10%) per annum or the maximum amount allowed by law, whichever is less, computed monthly If such outstanding sums are paid with interest within thirty (30) days following their respective due dates, Company's failure to pay such sums by their respective due dates shall not, m and of itself, constitute an Event of Default under Section 15 of this Franchise Agreement. 3 4 Letter of Credit. Within thirty (30) days following the Effective Date of this Franchise, Company shall provide the City with a Letter of Credit in favor of the City m the amount of One Hundred Thousand Dollars ($100,000 00) issued by a financial institution in the City's corporate limits and m a form acceptable to the City This Letter of Credit shall serve a security to the City for the faithful performance by Company of the provisions of this Franchise. The Letter of Credit shall provide that the City may draw down an amount owed by Company to the Crty under the provisions of this Franchise or applicable law by presenting the issuer with (i) a written statement, signed by the City Manager, that sets forth the basis of the City's demand and contains an appropriate reference to the applicable law, ordinance or Franchise provision under which the Crty is due the sum demanded and (ii) a copy of the Letter of Credit. Company shall keep m effect and maintain this Letter of Credit at the amount specified herein at all times dunng the term of this Franchise and for at least six (6) months following any revocation, termination or expiration of this Franchise The Letter of Credit shall provide that the Letter of Credit shall not expire and that the issuer shall not cancel the Letter of Credit unless the issuer provides wntten notice to the City m advance of such expiration or termination. Page 10 Cable Franchise Agreement with WideOpenWest Texas, LLC 4 TERM This Franchise shall become effective on the Effective Date, as established m the Franchise Ordinance, and shall remain in effect for fifteen (15) years, expiring at 11 59 P.M. on the fifteenth anniversary of the Effective Date. This Franchise and all rights of Company hereunder shall automatically terminate upon the expiration of this Franchise. The City or Company, at either party's option, may reopen this Franchise within six (6) months following the date of adoption of federal or state legislation or FCC rules or regulations if such affect the City's ability to (i) regulate rates for any Cable Services provided by Company or (ii) protect subscribers within the City on matters such as customer service or consumer protection. This Franchise may not be reopened for any reason other than as set forth in the immediately preceding sentence. 5. ACCESS TO THE SYSTEM. 5.1 PEG Channels. Subject to the City's rights to require additional PEG Channels and to Company's obligation to reallocate PEG Channels m order to accommodate a conversion to HDTV, as provided by Section 5 5 of this Franchise, Company shall provide non-commercial PEG Channels on its System m the basic or lowest tier of service as follows 5.1.1 Public Access Channel. Company shall designate Channe146 as a public access channel for use by members of the general public which will be administered by the Crty or by an institution or institutions designated by the City m the City's sole discretion. 5.1.2. Educational Channels. Company shall designate Channels 43 and 50 as educational channels for use by educational entities located in the Dallas-Fort Worth metropolitan area designated by the Crty m the City's sole discretion. 5.1.3. Government Channels. Company shall designate Channels 7 and 45 as government channels administered by the Crty for programming provided by the Crty, a designee of the City or such other units of state or local government as the City may appoint from time to time. Page I 1 Cable Franchise Agreement with WideOpenWest Texas, LLC 5.1.4. PEG Pro~rammin~ Support. The City already owns and operates its own community access studio and produces programming for all PEG channels on its own or on its behalf. Although federal law allows the City to require a cable operator to provide facilities for PEG programming, the City is wilting to forgo any such requirement m return for Company's assistance m the City's production of and administration over PEG programming as provided m this Section 5 1 4 In order for the Clty to continue rts production of and administration over PEG programming, Company shall pay to the City each month during the term of this Franchise a payment equal to One Dollar ($1 00) for each subscriber of the Company that resides in the City ("PEG Fee") In accordance with federal law, Company may elect, but is not required, to pass through this PEG Fee to its subscribers m the City In the event that Company does elect to pass through the PEG Fee to its subscribers in the City, Company shall hst the PEG Fee as a separate tine charge on its subscribers' monthly bills. 5.1.5. Allocation of PEG Channels. Upon at least six (6) months' advance written notice to Company, the City may allocate or reallocate the usage of the PEG Channels among and between different uses and users of such PEG Channels, including, but not hmrted to, the City's removing a PEG Channel or a user of a PEG Channel, replacing a PEG Channel or a user of a PEG Channel, regmring several different users to share or jointly use a given PEG Channel, or allowing one or more PEG Users currently sharing a PEG Channel to have a PEG Channel in which they are the sole User 5.1 6. Temporary Additional PEG Channels, After the date on which Company begins to provide at least fifty (50) channels m a high definition television format (or technological successor thereof), Company shall provide, upon written request by the Crty, one additional PEG Channel so as to allow, to the extent deemed appropriate by the City, PEG Channel simulcasting m both 6 MHz analog NTSC format and m an HDTV format. If Company ceases to provide any channel of programming on its System in 6 MHz NTSC analog format, Company shall not be required to provide such additional PEG Channel. 5.2. Interconnection. Upon written request by the City, Company shall promptly initiate work to interconnect rts System with other Cable Systems or open video systems m any portion of the Crty or contiguous communities m order to transmit, receive and exchange programming with such systems or the entities operating PEG Channels on such systems. In the event of any dispute between Company and a person or entity operating any other Page 12 Cable Franchise Agreement with WideopenWest Texas, LLC Cable System or open video system with regard to the costs of such interconnection, Company, the person or entity with whom Company has a dispute and the Crty shall meet m good faith m an attempt to resolve the dispute. 5.3. Institutional Network. Company, at no cost to the City, I-NET Users or subscribers, shall provide, construct, operate and maintain an Institutional Network (excluding coders/decoders, interface and other terminal equipment which will be supplied by I-NET Users) that will provide I-NET Users with Institutional Network Services m accordance with the provisions and conditions set forth herein and m Exhibit "B", attached hereto and hereby made a part of this Franchise Agreement for all purposes. Unless the City agrees otherwise m wnhng with Company, the I-NET, including the individual fiber optic fibers constituting all or any portion of the I-NET, shall by owned and maintained by Company but provided for the sole and exclusive use of I-NET Users. 5.4. Incremental I-NET Fiber. Company shall install and terminate additional fiber optic pairs ("Incremental I- NET Fiber") m Company's future new and replacement fiber optic installations for use as an I-NET m the following manner 5.4.1. Additional Facilities. The Crty will inform Company m wrtmg from time to time of any city buildings, facilities, traffic control devices and non-profit educational institutions m addition to those initially identified by the Crty pursuant to Exhibit "B" of this Franchise Agreement that the City would like to have served by an I-NET ("Additional I-NET Locations") Company will use such information m its plans for future fiber optic installations, where, for example, one routing will pass a facility the Crty would like to have served and another routing of comparable cost would not. 5.4.2. Annual Reports. By January 31 of each year, Company will provide the City with its conceptual plans for new and replacement fiber optic construction for that calendar year Company will also provide the Crty from time to time with wntten notice of conceptual plans for additional fiber optic construction as soon as is feasible, but not less than thirty (30) days pnor to the initiation of such construction. 5.4.3. Cost Estimates. Upon wntten request by the City, Company will provide the City with a conceptual cost estimate, and other information that the City may reasonably Page 13 Cable Franchise Agreement with WideOpenWest Texas, LLC require, of installing Incremental I-NET Fiber along all or any portion of a route or routes that are part of Company's conceptual plans. Such estimates shall be provided as soon as possible after the City's request so that the City may have time to obtain City Council approval or to amend its budget. 5.4.4. Notices to Proceed. As to any route where the City has requested a conceptual cost estimate, Company shall provide the Crty with the final cost estimate of installing Incremental I-NET Fiber, and other information that the City may reasonably require, as soon as Company's design of the fiber for such route is reasonably complete. The Crty will have thirty (30) days following receipt of the final cost figure to notify Company to install Incremental I-NET Fiber All Incremental I- NET Fiber and all Additional I-NET Sites served by Incremental I-NET Fiber shall be defined and treated as part of the I-NET under this Franchise Agreement for all purposes. 5.4.5. Installation Costs. The cost of the installation of Incremental I-NET Fiber shall be computed on an incremental bask, meaning the cost to Company of constructing and installing fiber on a given route with the Incremental I-NET Fiber less the cost to Company of constructing and installing fiber on a given route without the Incremental I-NET Fiber 5.5. HDTV. Broadcast and cable channels are likely to convert in whole or m part to a high definition televislon ("HDTV") format during the term of this Franchise. Channels will likely be delivered m both HDTV and conventional analog formats dunng a transition period prior to the expected total conversion to HDTV in 2006 This Section 5 5 and the provisions that follow are intended to (i) provide for additional PEG Channels so that dunng the aforementioned transition period these Channels will be available m both HDTV and conventional format, thereby enabling subscribers to receive PEG Channels regardless of whether they have an HDTV or a conventional television set; (ii) allow a reallocation of PEG Channels and PEG User to aid m the preceding subsection (i), and (iii) provide funds for PEG Users to convert their facilities to an HDTV format. 5.5.1. Re orts. Company shall provide the Crty with quarterly reports that outline Company's plans and progress for HDTV converslon, including, but not limited to, the number of channels to be converted, the date(s) of conversion, equipment changes, formats to be used and other information reasonably necessary for the City to be able to plan an appropriate and potentially concurrent conversion of PEG Channels and facilities to HDTV format. Page 14 Cable Franchise Agreement with WideopenWest Texas, LLC 5.5.2. Grant/Conversion. After the date that Company provides at least five (5) channels m one or more of several HDTV or successor formats, as such formats may from time to time be adopted or in effect ("HDTV Format"), upon written request by the Clty, Company shall provide the Crty with a grant to the Crty that is sufficient for I- NET Users and PEG Users to convert all their capital facilities, including, but not limited to, video, audio, lighting, control, storage and editing equipment, studios and vans, to HDTV format that is compatible with the format employed by Company Such grant shall not exceed 30 cents per customer per month when amortized over the number of subscribers as of the end of the calendar quarter preceding the date when the grant is made, using straight line amortization without interest for ten (10) years. (For example, if there were one thousand (1,000) subscribers at the time, the maximum grant would be .30 (maximum amount per subscriber) x 12 (per month) x 1,000 (number of subscribers) x 10 (number of years amortized) _ $36,000) The City shall allocate the grant among I-NET Users and PEG Users for HDTV conversion purposes as the City, in the City's sole discretion, deems is m the public interest.) 5.5.3. Temporary Additional PEG Channels. After the date that Company provides at least five (5) channels in HDTV Format, the Crty may from time to lime request, and Company shall provide, one (1) additional PEG Channel so as to allow, to the extent deemed appropriate by the Crty, PEG simulcasting m both 6 MHz analog NTSC format and m an HDTV Format. Company shall not be required to continue to provide such additional PEG Channel when Company ceases to provide any channel of programming on its System m 6 MHz NTSC analog format. 5.6. Open Broadband Access. Company shall provide nondiscriminatory access to Company's cable modem platform for providers of Internet and on-line services, whether or not such providers are affiliated with Company, subject to (i) the availability of bandwidth and (ii), at Company's request, execution by any such provider of a reasonable written agreement with Company pertaining to such access. Company shall (i) comply with all requirements of this Franchise regarding Cable Services m the provision of Internet and on-line services, (ii) include revenues from Internet access and cable modem services as part of Company's Gross Revenue for purposes of this Franchise; and (iii) comply with any applicable commercial leased access requirements that may be established by an applicable law, rule or regulation. Page 15 Cable Franchise Agreement with WideOpenWest Texas, LLC 6. USE OF PUBLIC RIGHT'S-OF-WAY 6.1 No Undue Burden. The System shall not be erected, installed, constructed, repaired, replaced or maintained m any manner that places an undue burden on the present or future use of the Public Rights-of--Way by the Crty and the public. If the Crty, m its sole and reasonable judgment, determines that any portion of the System does place an undue burden on a portion of the Public Rights-of--Way, Company, at Company's sole cost and expense and within a reasonable time period specified by the City, shall modify the System or take other actions determined by the City to be m the public interest to remove or alleviate the burden. 6.2. Minimal Interference. The System shall be erected and maintained in a manner that causes minimal interference with the public's use of the Public Rights-of--Way and with the rights or reasonable convenience of the owners of property which ad~oms any of the Public Rights-of--Way 6.3. Parallel Installation. All cables, wires and other similar Facilities shall be installed parallel with existing telephone and electric utility wires whenever possible Multiple cable configurations shall be m parallel arrangement and bundled m accordance with engineering and safety considerations and all applicable laws, ordinances, rules and regulations. 6.4. Underground Facilities. In any area of the Crty where the Crty currently or may m the future require public utilities to place their cables, wires or other equipment underground, then Company shall also place its existing and future cables, wires and other equipment underground. In any such area where Company may have existing cables, wires and other equipment above ground, Company shall install such cables, wires and other equipment underground wrthm six (6) months following written notification from the Crty and at no expense, cost or liability to the Crty In this event, Company shall coordinate with other utilities serving such area of the City so that only one or as few possible trenches as necessary are utilized for the underground installation of Facilities and other equipment. 6.5. Marking of Facilities. Company shall mark its aerial Facilities m the Public Rights-of--Way with a marker on its lines or alternate poles which shall state Company's name and provide a toll-free telephone number that a party may call for assistance. Company's underground Page 16 Cable Franchise Agreement with WideOpenWest Texas, LLC Facilities shall have (i) a conducting wire placed m the ground at least several inches above Company's cable if such cable is non-conductive and (ii) a continuous colored tape at least eighteen (18) inches above Company's cable that contains a statement to the effect that there is burred cable below and provides Company's name and atoll-free number that a party may call for assistance. 6.6. Directional Borings. Whenever Company places the System or any other Facilities beneath the traveled or paved portion of a Public Right-of--Way, unless otherwise approved in wasting by the Director of the City's Transportation/Public Works Department, Company shall do so by directional boring and not by excavation of a trench. Company shall notify the Director of the City's Transportation/Public Works Department at least five (5) business days prior to rts making a directional bore underneath any Public Right-of--Way At the City's request and m accordance with the Crty's instructions, Company will increase the size of the directional bore. In such an event, the City shall (i) pay only the incremental cost incurred by Company m enlarging the directional bore and (ii) have the exclusive right to use the additional space or capacity created by the increased size of the directional bore without additional charge or expense. 6.7. Pavement Cut Coordination and Additional Fees. In order to preserve the integrity of the Public Rights-of--Way infrastructure, Company shall coordinate rts construction of the System and all other work m the Public Rights-of--Way with the City's program for street construction, rebuilding and resurfacing. Company shall not cut, excavate or otherwise breach or damage the surface of any paved Public Right-of--Way within ninety-six (96) months following the construction or resurfacing of such Public Right-of--Way unless (i) Company obtains written consent from the Director of the City's Transportation/Public Works Department and (ii) pays the Clty the sum of One Thousand Two Hundred Fifty Dollars ($1,250 00) for each fifty linear feet (50') of a cut, excavation or breach of any Public Right-of--Way or portion thereof. This fee shall (i) be m addition to, and not m lieu of, Company's obligations to restore the Public Rights-of--Way in accordance with this Franchise and (ii) not be allocated or otherwise counted as part of any Franchise Fee to the City 6.8. Use of Easements. In using utility easements that cross privately-owned property, Company shall, without limitation, (i) ensure the safety, functioning and appearance of the property and the convenience and safety of other persons are not adversely affected by the installation or construction of Facilities necessary for the System, (ii) pay all costs and expenses incurred m or related to the installation, construction, operation or removal of such Facilities, and (iii) justly compensate property owners for any damages caused by the installation, construction, operation or removal of such Facilities. Page 17 Cable Franchise Agreement with WideOpenWest Texas, LLC 6.9. Restoration of Public Rights-of--Way. Company, at Company's sole cost and expense, and in a manner approved by the City, shall promptly restore any portion of the Public Rights-of--Way that are m any way disturbed or damaged by the construction, operation, maintenance or removal of the System to, at Company's option, as good or better a condition as such property was m immediately prior to the disturbance or damage. Company shall diligently commence such restoration within fifteen (15) calendar days following the date that Company first became aware of the disturbance or damage or, >f the System > being removed, within fifteen (15) calendar days following removal of the System. 6.10. Joint Use. Company, at no charge, shall permit the ~omt use of its poles, conduits and Facilities located m the Public Rights-of--Way by other utilities and by the City; provided that (i) the I-NET shall be for the exclusive use by I-NET Users and (ii) for Facilities other than the I-NET, Company may require the City to remove its facilities (i) ><f, and only >,f, excess height or space on or wrthm Company's Facilities no longer exists for the City's use and (>i) following at least ninety (90) calendar days' advance written notice. 6.11. Tree Trimming. Upon receipt of and in accordance with the City's ordinances and applicable permits, Company may trim trees >n or overhanging the Public Rights-of--Way so as to prevent the branches of such trees from coming into contact with the System m a manner that affects the integrity of the System. Except in an emergency, Company shall trim trees m or overhanging the Pubhc Rights-of--Way or City property only after rt has notified the City and received a permit for tree trimming as required by Crty ordinances. Company shall not trim trees on privately owned property unless it has obtained the consent of the property's owner Company, at Company's sole cost and expense, shall have all trimmed branches and debris removed from the Public Rights-of--Way immediately following completion of any such project. 6.12. Relocation of Facilities. Company, at Company's sole cost and expense and wrthm a reasonable time frame prescribed by the City, shall protect, support, disconnect, relocate or remove from the Pubhc Rights-of--Way any portion of its System when required by the Crty due to street or other public excavation, construction, repair, grading, regrading or traffic conditions, the installation of sewers, drams, water pipes or municipally-owned facilities of any kind, the vacation, construction or relocation of streets or any other type of structure or improvement of a public agency; or any other type of improvement necessary for the public health, safety or welfare. Page 18 Cable Franchise Agreement with WideopenWest Texas, LLC 6.13. Temporary Relocation of Facilities. Upon advance notice of at least fifteen (15) business days, Company shall temporarily raise or lower Its wires, cables or other equipment upon the reasonable request of any person or entity, including, but not limited to, a person or entity with a building moving permit Issued by the Crty Company may charge a reasonable fee for this service, but such fee shall not exceed the actual and direct costs incurred by Company m the temporary relocation of such Facilities. 6.14. Removal of Obsolete Facilities. Company shall promptly remove all obsolete or unused Facilities In the Clty When Company opens a trench, accesses a conduit or boring or Is working on aerial locations, rt shall remove or have removed all unusable and/or inactive Facilities from those locations unless otherwise approved by the Clty When Company opens a trench or access to bonngs, rt shall notify all other owners of facilities m or at such locations so that they may remove their obsolete facilities or Install new facilities while the trench or access to bonngs Is open. If Company receives notification from another entity that the entity Is opening a trench or access to bonngs, Company shall remove all of its obsolete Facilities from such location while the trench or access to bonngs Is open. 6.15. Removal of System. Upon the revocation, termination or expiration without extension or renewal of this Franchise, Company's right to use Public Rights-of--Way under this Franchise shall cease and Company shall Immediately discontinue the provision of Cable Services m the City and the use of the System. Within six (6) months following such revocation, termination or expiration and m accordance with directions from the Clty, Company shall remove the System, Including, but not limited to, all supporting structures, poles, transmission and distribution systems and other appurtenances, fixtures or property from the Public Rights-of--Way If Company has not removed all Facilities from the Public Rights-of--Way within six (6) months following revocation, termination or expiration of this Franchise, the Crty may deem all of Company's Facilities remaining m the Public Rights-of--Way abandoned and, at the City's sole option, (i) take possession of and title to such property or (ii) take any and all legal action necessary to compel Company to remove such property Within six (6) months following revocation, termination or expiration of this Franchise, Company shall also restore any property, public or private, that is disturbed or damaged by removal of the System. If Company has not restored all such property within this time, the Crty, at the City's sole option, may perform or have performed any necessary restoration work, m which case Company shall Immediately reimburse the Crty for any and all costs incurred m performing or having performed such restoration work. Page 19 Cable Franchise Agreement with WideOpenWest Texas, LLC 7 CUSTOMER SERVICE AND CONSUMER PROTECTION 7.1. General Standards. Company shall comply with the more stringent of the customer service and consumer protection provisions of (i) this Franchise or (ii) the FCC, as may be set forth from time to time in FCC rules and regulations, such as the current FCC Rule 76.309 7.2. ScramblingBlockin~. If at any time the System operates at 860 MHz, Company shall at all times scramble both the audio and video portions of all channels with predominately adult- oriented programming. Upon request by a subscriber, Company shall entirely block such subscriber from receiving both the audio and video portion of any channel with predominantly adult-oriented programming with devices, such as, by way of example, notch filters, which prevent the frequencies containing a specific channel or channels from being transmitted into the subscriber's premises. 7.3 Pay Per View Options. Subscribers shall be given the option of (i) not having pay per view or per program service available at all or (ii) only having such services provided upon the subscriber's provision of a security number selected by an adult representative of the subscriber 7 4. Customer Notifications. Company shall provide all subscribers with written information on at least each of the following matters (i) products and services offered, (ii) paces (rates) and options for Cable Services and the conditions of a subscription to such Cable Services, mcludmg, but not limited to, prices for programming, equipment rental, program guides, installation, disconnection, processing charges for late payment and other fees charged by Company; (iii) Company's installation and service maintenance policies, (iv) Instructions on how to use Cable Services, mcludmg procedures and options for pay per view, premium channels and connection to a VCR, (v) channel positions of programming carved on the System, mcludmg a listing specific to the City showing the channel names and numbers actually available to subscribers m the City; (vi) billing and Complaint procedures with a notice for a subscriber to contact Company initially with Complaints and questions, (vii) applicable privacy requirements as set forth m this Franchise or provided for by law; (viii) the availability of lockout devices and the ability to have a channel entirely blocked or trapped, and (ix) the procedure for resolving signal quality problems as set forth m Section 10.3 Company shall provide such written information to subscribers (i) at the time of installation or reinstallation of service; (ii) annually to all subscribers, and (iii) at any time upon request of a subscriber or the Crty The information shall be dated with the printing, revision, or effective date. Page 20 Cable Franchise Agreement with WideOpenWest Texas, LLC 7.5. Notifications Pertaining to Cable Services-related Changes. Company shall notify subscribers of any changes m rates, Cable Services or channel positions as soon as possible through announcements on the cable system or in writing. Company will provide written notice of such changes to the Crty in advance of its notifying subscribers and will make every effort to notify the Crty forty-five (45) days m advance of any such change Unless a longer time period is required by applicable law or regulation, nonce must be given to subscribers a minimum of thirty (30) days m advance of the implementation of any such change if the change is within the control of Company and as soon as possible if the change is not within the control of Company In addition, Company shall notify subscribers and the Crty at least thirty (30) days in advance of any significant changes m the matters covered m Section 7 4 7.6. Telephone Service Standards. 7 6.1 Customer Service Telephone Number. Company shall have a local or toll-free telephone number available for use by subscribers m the Crty twenty-four (24) hours per day, seven (7) days per week. The local or toll-free numbers shall be listed, with appropriate explanations, m the directory pubhshed by each local telephone company and m any significant directories pubhshed by others. 7.6.2. Customer Service Representatives. Once Company has two thousand (2,000) subscribers located in the City, Company shall ensure that Trained Company Representatives will be available to respond to subscriber telephone inquires twenty-four (24) hours per day, seven (?) days per week. As to video service matters, the term "Trained Company Representatives" shall mean employees of Company who have the authority and capability while speaking with a subscriber to, among other things, answer billing questions, adjust bills, and schedule service and installation calls. 7.6.3 Response Time. Under Normal Operating Conditions, a Trained Company Representative shall personally answer a telephone call within thirty (30) seconds from the time that the telephone connection is made. If the telephone call needs to be transferred, the time to complete the transfer shall not exceed thirty (30) seconds. These standards shall be met no less than ninety percent (90%) of the time under Normal Operating Conditions, measured on a quarterly basis. 7 6.4 Busy Signals. Under Normal Operating Conditions, the subscriber shall receive a busy signal less than three percent (3%) of the time, measured on a quarterly basis. Page 2] Cable Franchise Agreement with WideOpenWest Texas, LLC 7.7 Company Office. Company shall maintain a physical office wrthm the City or wrthm ten (10) miles of Company's Service Area, which shall include a place where subscribers may pay their bills, pickup and return converter boxes and comparable items and receive information on Company and its services. The office shall be open at least from 8.00 A.M. to 6.00 P.M. Monday through Fnday and 9 00 A.M. to 1 00 P.M. on Saturdays. 7.8. Standards for Installations and Service Calls. Company shall meet the following standards for installations and service calls not less than ninety-five percent (95%) of the time, measured on a quarterly basis 7.8.1. Installations Made within Seven Business Days. Under Normal Operating Conditions, installations located up to one hundred fifty (150) aerial feet from the existing distribution cable system shall be performed wrthm seven (7) business days after an order has been placed. 7.8.2. Scheduling. Installations and service calls shall be available at a minimum from 8 00 A.M. to 6.00 P.M. Monday through Fnday and 9.00 A.M. to 1.00 P.M. on Saturdays. Company shall, at the subscriber's option, either (i) schedule the subscriber to be the first call of the day or last call of the day on a first come, first served basis, (ii) schedule the appointment for a date certain on a "call to meet" basis where as the service technician finishes his/her prior task, the technician calls the subscriber and arranges to meet the subscriber shortly thereafter; or (iii) establish an appointment window of no more than three (3) hours with the subscriber (or adult representative of the subscriber) or another appointment window mutually agreed upon between the subscriber and Company 7.9. Operating Procedures for Installations and Service Calls. Company shall comply with the following operating procedures for all installations and service calls. If Company fails to comply with any operating procedure set forth m this Section 7.9, Company shall provide an affected subscriber with (i) a free installation if the call is for a Cable Service installation or (ii) at least twenty dollars ($20 00), which may be m the form of a credit, if the call is for any matter other than a Cable Service installation. 7.9 1. Nature of Response. Company shall respond to the request for service m accordance with the option selected. by the subscriber Page 22 Cable Franchise Agreement with WideOpenWest Texas, LLC 7.9.2. Cancellations or Rescheduling Requests by Company. Company shall not cancel or request the rescheduling of an appointment with a subscriber after 5 00 P.M. on the business day prior to the scheduled appointment. If, on the day of a given appointment with a subscriber, Company's technician is running late for such appointment and will not be able to keep the appointment as scheduled, the subscriber shall promptly be contacted. The appointment shall be rescheduled, as necessary, at a time which is convenient for the subscriber 7.9.3. Cancellations or Rescheduling Requests by Customers. In the event access to the subscriber's premises is not made available to Company's technician when the technician arnves during the established appointment window, the technician shall leave wntten notification stating the time of arnval and requesting that Company be contacted again to establish a new appointment window Notwithstanding the foregoing, if Company's technician or service representative telephones the subscriber during or pnor to the appointment window and is advised that the technician will not be given access to the subscriber's premises during the appointment window, then the technician shall not be obliged to travel to the subscriber's premises or to leave the written notification referred to above, and the burden shall again be upon the subscriber (or adult representative of the subscriber) to contact Company to arrange for a new appointment. 7.9 4 Length of Service Calls. Company's service technicians and service representatives shall take adequate time on each service call to address or correct the problem in question and shall not be held to a quota of calls per day or an established limitation on time invested per call. 7.9.5. Charles for Service to Company Equipment. Company shall not charge a subscriber for any service call relating to Company owned and Company maintained equipment after the mrtial mstallahon of Cable Services unless the problem giving rise to the service request can be demonstrated by Company to have been caused by the negligence or intentional misconduct of the subscriber 7 10. Service Interruptions and Signal Quality Impairments. Company shall meet the standards set forth in Sections 7 10 1 and 7 10.2 not less than ninety-five percent (95%) of the time, measured on a quarterly basis. In addition, Company shall comply with the conditions of Section 7 10.3 at all times. Page 23 Cable Franchise Agreement with WideOpenWest Texas, LLC 7.10.1 Service Interruptions. Under Normal Operating Conditions, Company shall diligently begin working on a Service Interruption promptly and m no event later than twenty-four (24) hours after the Service Interruption becomes known to Company "Service Interruption" shall mean the loss of picture or sound on one or more cable channels that affects one or more subscribers. 7.10.2. Signal uality Impairments. Under Normal Operating Conditions, Company shall begin diligently begin working on subscriber Complaints involving impairment or degradation of signal quality (other than a Service Interruption) promptly and in no event later than the next business day after the problem becomes known to Company 7.10.3. Redress for Service Interruptions and Signal Quality Impairments Company shall provide affected subscribers, upon request by the City or the subscriber, with one day's free service (equivalent to the service they were receiving at the time of the interruption) for each day or portion thereof of Service Interruption. 7.11. Lod of Customer Complaints. Company shall maintain a written log, or an equivalent stored m computer memory and capable of access and reproduction m panted form, of all Cable Service- related customer Complaints ongmatmg within the City Such log shall be m form and substance acceptable to the City and at minimum list the date and time of each such Complaint, identify the customer to the extent allowed by law, and describe the nature of the Complaint and when and what actions were taken by Company m response thereto The log shall be organized by City The log shall be kept at Company's office m or near the City for a penod of at least two (2) years and shall be available for inspection dunng regular business hours by the Crty upon request. 7.12 Bills. 7.12.1. Format. Company's bills to customers for Cable Services shall be issued monthly to each subscriber with a balance due or change of service. Bills shall be clear, concise and understandable. Bills shall be fully itemized, with itemizations including, but not limited to, basic service, cable programming service, premium service charges, equipment charges and processing fees for late payments as further specified m Section 7 14 Bills shall also clearly delineate all activity dunng the bilking penod, including optional charges, rebates, credits, and late Page 24 Cable Franchise Agreement with WideOpenWest Texas, LLC charges. The City shall be given thirty (30) days advance nonce of any change m the format of bills. Each bill shall prominently display Company's local or toll-free telephone numbers available for use by subscribers. If a bill has more than one portion (for example, one portion that is kept by the customer and one portion that is sent to Company) such telephone numbers shall prominently appear on the front side of the portion of the bill retained by the customer 7.12.2. Complaints and Disputes. Company shall respond in wntmg to all wntten complaints from subscribers regarding bilking matters within thirty (30) days of receipt. Company shall not disconnect a subscriber for failure to pay legitimately contested charges dunng a billing dispute. However, dunng a bilking dispute Company may disconnect a subscriber for failure to pay charges that are not contested. 7.12.3. Payment Options. Company shall provide subscribers m the City with the option of paying for Cable Services by (i) cash, (ii) check; (iii) an automatic payment plan under which the amount of the bill is automatically deducted from a checking account designated by the subscriber; or (iv) by mayor credit card on a preauthonzed basis. 7.13. Refunds and Credits. Refund checks for Cable Service shall be issued to subscribers promptly and m no event later than either (i) the subscriber's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier, or (ii) of service is terminated, thirty (30) days after return of egmpment owned by Company or at the time of the next bilking cycle, whichever is earlier Credits for Cable Service shall be issued no later than the subscriber's next billing cycle following a determination that a credit is warranted. 7.14. Late Payments. 7.14 1. Notification of Additional Fee on Bills. Each bill shall specify on its face m a fashion emphasizing same (such as bold face type, underlined type or a larger font) "For payments received after [date] a $ processing fee for late payment maybe charged." 7.14.2. Process for Assessment of Additional Fee. No processing fee for a late payment, however denominated, shall be assessed or added to a subscriber's bill less than twenty-one (21) calendar days after the mailing of the bill to the subscriber In the event any such fee is assessed Page 25 Cable Franchise Agreement with WideOpenwest Texas, LLC or added, Company shall separately state the charge on the subscriber's bill and shall include the word "late" m the description of such fee. 7.15. Disconnection of Cable Services. Company shall comply with the following standards and procedures pertaining to the disconnection of Cable Services to any of Company's subscribers m the City• 7.15.1. Disconnection for Non-Payment. Company shall not disconnect a subscriber for failure to pay until at least forty-five (45) calendar days have elapsed after the due date for payment of the subscriber's bill and Company has provided at least ten (10) calendar days' written notice separate from the monthly bill to the subscriber prior to disconnection, specifying the effective date after which Cable Services are subject to disconnection. 715.2. Disconnection for Illegal Practices. Company may disconnect a subscriber at any time if Company in good faith believes that the subscriber has tampered with or abused Company's equipment, that there is a signal leakage problem (or other non-compliance with FCC rules or other standards which poses a risk to hues or property) on the subscriber's premises, or that the subscriber is or may be engaged m the theft of Cable Services. 715.3. Disconnection at Subscriber's Request. Company shall promptly disconnect any subscriber who so requests disconnection, including those subscribers who elect to cease receiving Cable Services from Company m order to receive Cable Services or other multi-channel video services from another person or entity No period of notice prior to requested termination of service shall be required of subscribers by Company No charge shall be imposed upon the subscriber for or related to disconnection or for any Cable Service delivered after the effective date of the disconnect request (unless there is a delay by the subscriber m the return of Company equipment) If the subscriber fails to specify an effective date for disconnection, the effective date shall be deemed to be the day following the date the disconnect request is received by Company provided that Company equipment has been returned by the subscriber 7.16. Truth In Advertising. Company's bills, advertising and communications to its current or potential subscribers shall be truthful and shall not contain any false or misleading statement. For the purposes of the preceding, a statement is false or misleading if rt contains an untrue Page 26 Cable Franchise Agreement with WideOpenWest Texas, LLC statement of any material fact or omits to state a material fact necessary in order to make the statements made, m the light of the circumstances under which they were made, not misleading. 7.17. Drops. Company shall not charge subscribers or potential subscribers located wrthm Company's Service Area charge for a Drop or other kind of charge for the extension of the cable, line or wire that connects the subscriber's premises to Company's System. For subscribers or potential subscribers located m the City but outside Company's Service Area, Company's standard installation charge shall include at least a one hundred fifty (150) foot Drop from rts Cable Television System, such that current or potential subscribers shall only be charged for a Drop to the extent the Drop serving such subscribers exceeds one hundred fifty (150) feet, measured from the tap on the distribution portion of the System to the subscriber's premises. Company shall notify in advance any potential subscriber located outside Company's Service Area who is requesting Cable Service from Company of anot-to-exceed Drop charge that Company intends to assess in order to extend Cable Service to that potential subscriber Drops shall be made from a pole and not from midspan whenever possible. Upon termination of Cable Services to a subscriber, Company shall either remove its Drop entirely or secure the Drop in a method reasonably acceptable to the City 7.18. Underground Facilities Requested by Customer. If a subscriber requests Company to install Cable Services to a subscriber's property through underground facilities, Company shall comply with the subscriber's request but may charge the subscriber the actual difference m cost between the aerial installation of the Drop and the underground installation of the Drop This provision shall not apply if the subscriber hues m an area of the City m which underground utilities and facilities are required, m which case Company may only charge the subscriber its normal installation charge. 7.19. Identification of Company Personnel. All service personnel of Company, including contractors and subcontractors, whose normal dunes involve contact with the general public shall wear on their clothing a clearly visible identification card bearing their name and photograph. Company shall account for all identification cards at all times. Every service vehicle of Company shall be clearly identifiable by the public and shall display Company's logo and local telephone number in a plainly visible manner Vehicles used by any contractors or subcontractors of Company shall display the contractor's or subcontractor's name, markings indicating that such contractor or subcontractor is working for Company, and the local telephone number of both Company and the contractor or subcontractor Page 27 Cable Franchise Agreement with WideOpenWest Texas, LLC 7.20. Subscriber Information. Company shall not record or retain any information as to the programming actually watched by a subscriber Company shall destroy all subscriber information of a personally identifiable nature after a reasonable period of time unless otherwise requested by the affected subscriber This Section 7.20 shall not prohibit Company from its conducting system wide or individually addressed "sweeps" solely for the purpose of (i) verifying system integrity, (ii) checking for illegal taps or (iii) billing. 7.21. Converters. Company shall make available for rent by subscribers all converter equipment necessary for subscribers (such as those whose television sets are not "cable ready") to receive all Cable Services offered by Company 7.22. Negative Options. Company shall not engage in the practice of "negative option" marketing and shall not charge any subscriber for any service that the subscriber has not affirmatively requested. 8. REPORTS TO CITY. 8.1. Service-Related Reports. Company shall provide the following reports to the City monthly (by the 15th business day of the following month) and quarterly (by the 15th business day of the following quarter These reports shall m forms currently used by Company or otherwise in form and substance acceptable to the City, showing on a consistent basis, fairly applied, Company's compliance with the customer service standards set forth m this Franchise. • Number of Subscribers, • Report of Monthly Report of Service Calls by Reason, which shall include an explanation of the categories of reported reasons, • Monthly Outage Summary by Franchise; Once Company has two thousand (2,000) subscribers located in the City, the City may require Company to provide the following additional reports • System Statistics Report; • Monthly Service Call Availability Analysis and Installation Call Availability Analysis, Page 28 Cable Franchise Agreement with WideOpenWest Texas, LLC • Monthly Customer Call Sample Report, showing the results of a random sampling of customer complaints, and • Monthly Call Center Performance Report. 8.2. Format of Reports. Company's service-related reports to the City shall show Company's performance for the respective time penod, excluding penods that were not Normal Operating Conditions ("Abnormal Operating Conditions") and, if Company contends any Abnormal Operating Conditions occurred dunng the penod m question, rt shall describe the nature and extent of such Abnormal Operating Conditions and show Company's performance both including and excluding the time penods Company contends such conditions were m effect. At the City's request, Company will provide additional mfornation and existing reports reasonably related to the measurement and evaluation of Company's compliance with the customer service requirements set forth m this Franchise. 8.3. Audits Pertaining to Service-Related Reports. The City, by itself or m combination with other mumcipahties with whom Company has a franchise or other agreement to use public nghts-of--way for the provision of Cable Services, reserves the nght to audit Company or any Affiliate of Company to venfy the accuracy of the service-related reports required under this Section 8 In the event of any such audit, Company shall make available at a location m Tarrant County, Texas that is convenient to the City all records of Company or an Affiliate of Company reasonably necessary to conduct such audit. If the audit discloses performance that is three (3) percentage points worse than any of the standards of the referenced sections (such as compliance 92% of the time versus 95% of the time), Company shall pay the City's costs m connection with the audit w~thm thirty (30) days of submission of an invoice. Otherwise, the City shall pay the costs of such audit. 8.4. Construction-Related Reports. Company shall provide the City with a wntten quarterly report that outlines Company's (i) construction activities dunng that quarter and (ii) plans for construction to the System for the next twenty-four (24) months. This report shall be a public document and kept on file m the Crty Secretary's Office for inspection by the public 9. LIQUIDATED DAMAGES FOR VIOLATIONS OF CUSTOMER SERVICE STANDARDS. 9.1 Telephone Service. Company acknowledges and agrees that its failure to comply with the telephone service standards set forth m Sections 7 6.2, 7 6.3, andlor 7 6 4 of this Franchise will Page 29 Cable Franchise Agreement with WideopenWest Texas, LLC harm subscribers and the City and that the amounts of actual damages will be difficult or impossible to ascertain. Therefore, for each quarter following the Effective Date of this Franchise, the City may assess the following liquidated damages against Company for non-comphance with the customer service standards set forth m Sections 7 6.2, 7 6 3 and 7 6 4 (measured on a quarterly basis) Company acknowledges and agrees that the liquidated damages set forth below are a reasonable approximation of actual damages and that this Section 9 1 is intended to provide compensation for damages and is not a penalty Subject to Section 9.3 of this Franchise, the damages for non-compliance with one or more of the standards m Sections 7 6.2, 7 6 3, and/or 7 6 4 during a calendar quarter are as follows: • First quarter of non-compliance $1 00 per subscriber or $5,000 00, whichever is more. • Second quarter of non-compliance within three (3) consecutive calendar quarters $2.00 per subscriber or $5,000 00, whichever is more. • Third quarter of non-compliance within six (6) consecutive calendar quarters and each subsequent non-compliance• $3 00 per subscriber or $5,000 00, whichever is more. 9.2. Installations, Service Calls and Service Interruptions. Company acknowledges and agrees that rts failure to comply with the standards for installations, service calls and service interruptions set forth m Section 7 8 1, 7 8.2, 7 10 1, and/or 7 10.2 of this Franchise will harm subscribers and the City and that the amounts of actual damages will be difficult or impossible to ascertain. Therefore, for each quarter following the Effective Date of this Franchise, the City may assess the following liquidated damages against Company for non-comphance with the customer service standards set forth m Sections 7 8 1, 7 8.2, 7 10 1 and/or 7 10.2 (measured on a quarterly basis) Company acknowledges and agrees that the liquidated damages set forth below are a reasonable approximation of actual damages and that this Section 9.2 is intended to provide compensation for damages and is not a penalty Subject to Section 9 3, the damages for non-comphance with one or more of the standards in Sections 7 6.2, 7 6.3, and/or 7 6 4 during a calendar quarter are as follows. • First quarter of non-comphance: $1 00 per subscriber or $5,000 00, whichever is more. • Second quarter of non-comphance within three (3) consecutive calendar quarters $2 00 per subscriber or $5,000 00, whichever is more Page 30 Cable Franchise Agreement with WideOpenWest Texas, LLC Third quarter of non-compliance wrthm six (6) consecutive calendar quarters and each subsequent non-compliance. $3 00 per subscriber or $5,000 00, whichever is more. 9.3. Effect of Extended Periods of Compliance. If Company complies with all of the standards identified m Sections 9 1 and 9.2 for eight (8) consecutive calendar quarters, the damages for the first subsequent non- compliance with any and each of those standards will be $0.25 per subscriber or $3,000, whichever is more. Thereafter, the damages provided m Sections 9 1 and 9.2 will again be applicable so that the next non-compliance wrthm three (3) and/or six (6) consecutive calendar quarters, as the case may be, will be subject to the damages set forth for such quarters m Sections 9 1 and/or 9.2, respectively 9.4. Calculation of Number of Subscribers. For purposes of calculating liquidated damages under Sections 9 1 or 9.2, the number of subscribers shall be that reflected on Company's report to the City pertaining to subscriber numbers for the quarter m which liquidated damages are subject to assessment or, if Company fails to provide such report, as reasonably calculated by the City 9.5. Failure to Submit Quarterly Reports. Company acknowledges and agrees that its failure to submit quarterly reports to the City as required by Sections 8 1 and 8.2 will harm the City and its ability to serve its citizens who subscribe to Company's Cable Services, and that the amounts of actual damages will be difficult or impossible to ascertain. Therefore, for each quarter following the Effective Date of this Franchise, the City may assess liquidated damages against Company for Company's failure to submit quarterly reports as required by Sections 8 1 and 8.2 in the amount of $1 00 per subscriber or $5,000 00, whichever is more. Company acknowledges and agrees that such liquidated damages are a reasonable approximation of actual damages and that this Section 9 5 is intended to provide compensation for damages and is not a penalty 9.6. No Waiver. An event of non-compliance will be taken into account in determining whether a later event of non-compliance is a second, third or subsequent event without regard to whether City has assessed liquidated damages or taken any other action with respect to the non-compliance. 9.7. Procedure for Assessment. Liquidated damages shall be assessed by the City Manager or his or her designee. Company may obtain a review of the assessment by the City Council by making a written Page 3 ] Cable Franchise Agreement with WideOpenWest Texas, LLC request within ten (10) business days after receipt of notice m wntmg of the assessment and its basis. Company shall have an opportunity to be heard at a meeting of the City Council or by a person designated by the City Council as a heanng officer pnor to the actual assessment of liquidated damages by the City Manager or his or her designee. The City Council may adopt additional procedures, including appointment of a City official or other person to act as a heanng officer The City Council's decision may be based upon the record of proceedings conducted by the heanng officer or a proposal for decision submitted by the heanng officer 9.8. P~ment and Classification of Liquidated Damages. Liquidated damages shall be paid on or before the tenth (10th) business day following assessment. Company acknowledges and agrees that liquidated damages paid under this Franchise do not constitute franchise fees, do not reduce the amounts otherwise payable as franchise fees and will not be passed through to subscribers in the City 10. TECHNICAL STANDARDS. The following provisions shall apply to Company's implementation of and compliance with the FCC's rules and regulations relating to cable television technical standards for signal quality, currently set forth at 47 C.F.R. § 76 601 and following, and subsequent amendments to any such rules and regulations. 10.1. Testing by Company. Company shall notify the Crty m advance of testing for compliance with FCC standards. The City may have a representative present to observe such tests and may designate one location to be tested. Company shall provide the City with a report of testing for compliance with such standards upon wntten request (but not more than twice a year) Such report to City shall state, in pertinent part, that the person doing the testing has reviewed the applicable rules and regulations of the FCC, the industry standards and other materials referenced therein, and that such testing was done fairly and either shows full compliance with such rules and regulations or sets forth with specificity and m detail all areas of non-compliance, their actual or likely scope and causes, and Company's professional recommendation of the best corrective measures to immediately and permanently correct the non-compliance. 10.2. Testing by City. The City at its expense (no more than twice per year, bamng unusual circumstances) upon thirty (30) days written notice to Company may test the System for compliance with the FCC technical standards. Company shall cooperate in such tests and provide access to the System. Company shall reimburse the City for the full expense of any test which shows a material non-compliance with such standards. Page 32 Cable Franchise Agreement with WideOpenWest Texas, LLC 10.3. Subscriber Complaints Re~ardin~ Signal uality. Company shall establish and notify subscribers of the following procedure for the resolution of complaints from subscribers about the quality of the television signal delivered to them. (i) All complaints shall go initially to Company; (ii) All matters not resolved by Company shall at Company's or the subscriber's option be referred to the City for the City to resolve; and (iii) All matters not resolved by the City maybe referred to the FCC for the FCC to resolve. 11. RATES AND REGULATION. 11.1. General Rights of the City The Crty reserves the right to regulate Company, the Cable Television System, the provision of Cable Services authorized under this Franchise, Company's rates and charges for the provision of Cable Services and for related services, such as, without limitation, rental deposits and downgrade fees, as expressly permitted by federal, state and/or local laws, ordinances, rules and regulations. 11.2. Frequency of Rate Increases. Company will not increase or file any form or notification with the FCC related to an increase m Company's rates for basic cable service, equipment, service calls or other services over which the City has regulatory authority under federal, state and/or local laws, ordinances, rules and regulations more than once in each calendar year 11.3. Rate Orders. Unless a final order of the FCC, affirmed on appeal if an appeal is taken, determines that a rate order of the City, as a franchise authority, is automatically stayed by the filing of an appeal by Company to the FCC, Company will implement each rate order adopted by the City unless and until Company obtains an order of the FCC or a court of competent jurisdiction staying or overruling the effecriveness of the rate order Company will reimburse the City for all reasonable attorneys' fees and other expenses incurred by the City as a result of Company's violation of this Section 11.3 11.4 Notice of Certain Costs. On at least an annual basis and at any other time when requested by the Crty, Company shall identify to the Crty m writing the costs which Company claims are external costs that Company potentially may pass through to subscribers under rules and regulations of the FCC or successor rules with a similar effect. Company's notice to the City shall state the individual amounts of such costs and the approximate amount that subscribers may be billed as a result and shall contain a calculation to justify such amount. Page 33 Cable Franchise Agreement with. WideOpenWest Texas, LLC 12. LIABILITY AND INDEMNIFICATION. 12.1. Disclaimer of Liability. The City shall not at any time be liable for any m~ury or damage occurring to any person or property from any cause whatsoever that apses out of the construction, maintenance, repair, use, operation, condition or dismantling of the System or Company's provision of Cable Services. 12.2. Indemnification. Company, at Company's sole cost and expense, shall indemnify and hold harmless the City, its officers, boards, commissions, agents, employees and volunteers ("Indemnitees"), from and against any and all habilrties, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses, whether legal or equitable, which may be imposed upon, incurred by or asserted against any Indemnitees by reason of any personal m~ury or property damage or any act or omission of Company, rts personnel, employees, agents, contractors or subcontractors which may apse out of or be many way connected with (i) the construction, installation, operation, maintenance or condition of the System, (ii) the transmission of any programming over the System, (iii) any claim or lien arising out of work, labor, materials or supplies provided or supplied to Company, its contractors or subcontractors, (iv) the provision of Cable Services, or (v) Company's failure to comply with any federal, state or local law, ordinance, franchise, rule or regulation. 12.3 Assumption of Risk. Company hereby undertakes and assumes, for and on behalf of Company, its officers, agents, contractors, subcontractors, agents and employees, all risk of dangerous conditions, if any, on or about any City-owned or -controlled property, including, but not limited to, the Public Rights-of--Way In addition, Company hereby agrees to and shall indemnify and hold harmless any Indemmtee against and from any claim asserted or liability imposed upon any Indemmtee for any personal m~ury or property damage .incurred or asserted by Company or any of its employees, agents, servants, contractors or subcontractors, and ansmg from the installation, operation, maintenance or condition of the System. 12.4. Defense of Indemnitees. In the event any action, lawsuit or other proceeding is brought against any Indemmtee by reason of any matter for which the Indemnitees are indemnified under Sections 12.2 or 12.3, the Crty shall give Company prompt notice of the making of any claim or commencement of any such action, lawsuit or other proceeding, and Company, at Company's sole cost and expense, shall resist and defend the same with legal counsel Page 34 Cable Franchise Agreement with WideOpenWest Texas, LLC selected by the City and reasonably acceptable to Company and with reasonable participation by the Crty In such an event, Company shall not admit liability m any matter on behalf of any Indemmtee without the advance written consent of the Crty 13 INSURANCE. Company shall procure and maintain at all times, m full force and effect, a policy or policies of insurance to provide coverages as specified herein, naming the City as an additional insured and covering all public risks related to the use, occupancy, condition, maintenance, existence or location of the Public Rights-of--Way and the construction, installation, operation, maintenance or condition of the System. 13.1 Primary Liability Insurance Coverage. • Commercial General Liability: $1,000,000 per occurrence; • Property Damage Liability $1,000,000 per occurrence; • Automobile Liability $1,000,000 per accident, mcludmg, but not limited to, all owned, lured or non-owned motor vehicles used m conjunction with the rights granted under this Franchise • Worker's Compensation• As required by law; and, Employer's Liability as follows. $1,000,000 per accident. 13.2. Excess Liability Insurance Umbrella. $10,000,000, including Primary Coverage, for each coverage fisted in § 13 1 13.3. Revisions to Required Coverage. At the reasonable recommendation of the City's Risk Manager, the City may at any lime revise insurance coverage requirements and limits requu-ed by this Franclise. Company agrees that within thirty (30) days of receipt of wntten notice from the City, Company will implement all such revisions requested by the City The policy or policies of insurance shall be endorsed to provide that no material changes m coverage, mcludmg, but not limited to, cancellation, termination, non-renewal or amendment, shall be made without thirty (30) days' prior written nonce to the City Page 35 Cable Franchise Agreement with WideOpenWest Texas, LLC 13.4. Underwriters and Certificates. Company shall procure and maintain its insurance with underwriters authorized to do business m the State of Texas and who are acceptable to the City in terms of solvency and financial strength. Within thirty (30) days following adoption of this Franchise by the City Council, Company shall furnish the City with certificates of insurance signed by the respective companies as proof that rt has obtained the types and amounts of insurance coverage required herein. In addition, Company shall, on demand, provide the City with evidence that it has maintained such coverage m full force and effect. 13.5. Deductibles. Deductible or self-insured retention limits on any line of coverage required herein shall not exceed $25,000 m the annual aggregate unless the limit per .occurrence, or per line of coverage, or aggregate is otherwise approved by the City 13.6. No Limitation of Liability The insurance requirements set forth in this Section 13 and any recovery by the City of any sum by reason of any insurance policy required under tlis Franclise shall m no way be construed or effected to hmrt or m any way affect Company's liability to the City or other persons as provided by this Franchise or law 14. TRANSFERS, OWNERSHIP AND CONTROL. 14.1. Management of Cable Television System. Company shall personally manage the Cable Television System and the provision of Cable Services within the City Company shall not, directly or indirectly, contract for, subcontract or assign, m whole or m part, the management of the Cable Television System or the provision of Cable Services within the City unless the City provides advance written consent. 14.2. Transfers. This Franchise and the Cable Television System shall not be sold, Transferred, assigned or otherwise encumbered without the prior written consent of the City For purposes of this Franchise, m addition to the definition provided m Section 1, a "Transfer" shall specifically include (i) any change m limited partnership interests, non- managmg limited liability company interests, or non voting stock representing thirty percent (30%} or more of the equity interests m the entity m question and (ii) any option, right of conversion or similar right to acquire interests constituting control without substantial additional consideration. If Company seeks to obtain the consent of the City for any kind of Transfer, sale, assignment or other encumbrance, Company shall submit Page 36 Cable Franchise Agreement with WideOpenWest Texas, LLC an application for such consent m the form requested by the City and shall submit or cause to be submitted to the City all such documents and information that the Crty may reasonably need for its consideration of the application. Company shall pay on the City's behalf or reimburse the City for all costs reasonably incurred by the City due to any proposed sale, Transfer, assignment or other encumbrance. In addition, if Company sells, Transfers or otherwise assigns the System or seeks or attempts to sell, Transfer or otherwise assign the System within one (1) year following the date that the City approves m writing Company's certification of completion for Construction Phase Number 2, as identified and defined m Exhibit "A" of this Franchise, the City may also assess liquidated damages against Company in the amount of One Hundred Thousand Dollars ($100,000 00) Company acknowledges and agrees that the amount of liquidated damages set forth m this paragraph is a reasonable approximation of actual damages that the City will incur as a result of such a sale, Transfer or assignment or attempted sale, Transfer or assignment and is not a penalty In the event that the City assesses liquidated damages pursuant to this Section 14.2, Company represents, warrants and agrees that rt will not contest m any forum whatsoever (i) the characterization of such damages as liquidated damages or (ii) the amount of such liquidated damages. The Crty shall assess such liquidated damages in accordance with the procedure set forth in Section 9 7 of this Franchise and Company shall pay such liquidated damages m accordance with Section 9 8 of this Franchise 15. DEFAULTS. The occurrence at any time during the term of this Franchise of one or more of the following events shall constitute an "Event of Default" under this Franchise• 15.1. Failure to Pay Franchise Fees. An Event of Default shall occur if Company fails to pay any Franchise Fee on or before the respective due date. 15.2. Failure to Initiate Construction of System. An Event of Default shall occur if Company fails to initiate construction of its System on or before September 30, 2001 15.3. Failure to Complete Construction of System. An Event of Default shall occur if Company (i) fails to complete any Construction Phase, as defined m Exhibit "A", by the deadline established for that Construction Phase by the Build-out Schedule set forth m Exhibit "A" and (ii) fails to undertake construction on such Construction Phase for a period of sixty (60) calendar days after such deadline Page 37 Cable Franchise Agreement with WideOpenWest Texas, LLC 15.4. Breach. An Event of Default shall occur if Company materially breaches or violates any of the terms, covenants, representations or warranties set forth m this Franchise (including any exhibits thereto) or fails to perform any obligation required by this Franchise. 15.4. Bankruptcy, Insolvency or Receivership. An Event of Default shall occur if Company (i) files a voluntary petition m bankruptcy; (ii) is adjudicated insolvent; (iii) files any petition or fails to contest any petition filed against rt seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any laws relating to bankruptcy, insolvency or other relief for debtors, (iv) seeks, consents to or acquiesces in the appointment of any trustee, receiver, master, custodian or liquidator of Company, any of Company's property, franchises, or any revenues, issues, earnings or profits thereof; (v) makes an assignment for the benefit of creditors, or (vi) fails to pay Company's debts generally as they become due. 15.5. Violations of the Law. An Event of Default shall occur if Company violates any existing or future federal, state or local laws or any existing or future ordinances, rules and regulations of the City 16. UNCURED DEFAULTS AND REMEDIES. 16.1. Notice of Default and_Opportunity to Cure. If an Event of Default occurs, the City shall provide Company with written notice and shall give Company the opportunity to cure such Event of Default. For an Event of Default which can be cured by the immediate payment of money to the City, Company shall have thirty (30) days from the date it receives written notice from the City to cure the Event of Default. For any other Event of Default, Company shall have sixty (60) days from the date rt receives written notice from the City to cure the Event of Default. If any Event of Default is not cured within the time period specified herein, such Event of Default shall, without further notice from the City, become an "Uncured Default" and the Crty immediately may exercise the remedies provided m Section 16.2 16.2. Remedies for Uncured Defaults. Upon the occurrence of an Uncured Default, the Crty shall be entitled to exercise, at the same time or at different times, any of the following remedies, all of which shall be cumulative of and without limitation to any other rights or remedies the Crty may have Page 38 Cable Franchise Agreement with WideOpenWest Texas, LLC 16.2.1. Termination of Franchise. Upon the occurrence of an Uncured Default, the City may terminate this Franchise. Upon such termination, Company shall forfeit all nghts granted to it under this Franchise, and, except as to Company's unperformed obligations and existing habil~hes as of the date of termination, this Franchise shall automatically be deemed null and void and shall have no further force or effect. Company shall remain obligated to pay and the City shall retain the right to receive Franchise Fees and any other payments due up to the date of termination. Company shall remove the System from the City as and when requested by the City The City's right to terminate this Franchise under this Section 16.2.1 shall does not and shall not be construed to constitute any kind of limitation on the City's right to terminate this Franchise for other reasons as provided by and in accordance with this Franchise. 16.2.2. Leal Action Against Company. Upon the occurrence of an Uncured Default, the City may commence against Company an action at law for monetary damages or in equity for m~unctive relief or specific performance of any of the provisions of this Franchise which, as a matter of equity, are specifically enforceable 17. RIGHTS AND RESERVATIONS OF THE CITY. In addition to the rights reserved to the City under this Franchise, the City shall have the following rights and reservations 17.1. To require proper and adequate extensions of the System and Cable Services and maintenance thereof at the highest practicable standards of efficiency; and 17.2. To establish reasonable standards of Cable Service and product quality and to prevent unjust discrimination m Company's provision of Cable Services and/or rates for Cable Services, and 17.3. To require continuous and uninterrupted service to the public m accordance with the terms and conditions of this Franchise throughout the entire term of this Franchise; and 17.4 To control and regulate the use of the City's Public Rights-of--Way, public places and other City-owned property and the spaces above and beneath them, and 17.5. To install and maintain, without charge, City equipment upon Company's poles and in Company's conduit upon the condition that such equipment does not actually and unreasonably interfere with Company's provision of Cable Services Page 39 Cable Franchise Agreement with WideopenWest Texas, LLC and is not used by the City to provided services m competition with Company; and 17.6. Through representatives designated by the City, to inspect all construction, Facility-installation or other work performed by Company in the City, and to make any inspections that the City reasonably finds necessary to ensure compliance with the terms of this Franchise and applicable laws, ordinances, rules and regulations. 18. PROVISION OF INFORMATION. 18.1 Filings. Company shall provide copies of all documents which Company files with or sends to the FCC and, upon the City's request, copies of records that Company is required to mamtam under FCC regulations (currently 47 C.F.R. § 76) 18.2. Lawsuits. Company shall provide the City with copies of all pleadings in all lawsuits to which Company is a party and that pertain to the granting of this Franchise and/or the operation of the Cable Television System within thirty (30) days of Company's receipt of same. 18.3. Books and Records.. From time to time, during normal business hours and on anon-disruptive basis, the City may review all portions of Company's books and records that are reasonably necessary to monitor compliance by Company with the terms and conditions of this Franchise. Such records shall include, but shall not be limited to, records that Company is required to mamtam under FCC and financial information underlying reports provided to the City in accordance with this Franchise. However, Company shall not be required to release (i) personally identifiable subscriber information if prohibited by applicable law (such as § 631 of the Cable Act, codified at 47 U S C § 551) or (ii) Company's income tax returns or information directly underlying the preparation of any such returns. To the extent permitted by law, the City shall treat any information released to it by Company on a confidential basis if requested by Company and upon execution of a City- signed written agreement or letter to that effect. 19 COMPANY AS INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Company shall operate as an independent contractor as to all rights and privileges granted by this Franchise, and not as an agent, representative or employee of the City Company shall have the exclusive right to control the Page 40 Cable Franchise Agreement with WideOpenWest Texas, LLC details of its Cable Business and operation, m accordance with the terms and conditions of this Franchise, and shall be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors and subcontractors. Company acknowledges that the doctrine of respondeat superzor shall not apply as between the City and Company, its officers, agents, employees, contractors and subcontractors. Company further agrees that nothing herein shall be construed as the creation of a partnership or~oint enterprise between the City and Company 20. NOTICES. Notices required pursuant to the provisions of this Franclise shall be conclusively determined to have been delivered when (i) hand-delivered to the other party, its agents, employees, servants or representatives, or (ii) received by the other party by United States Mail, postage prepaid, return receipt requested, addressed as follows. To THE CITY• City of Fort Worth Cable Communications Office Attn. Director 401 W Second St. Fort Worth, TX 76102 To COMPANY• WideOpenWest Attn. General Manager 1431 Greenway Drive, Suite 800 Irving, TX 75038 with a copy to: City of Fort Worth Department of Law Attn. Attorney for Telecommunications 1000 Throckmorton Fort Worth, TX 76102 21. NON-DISCRIMINATION COVENANT. Company shall not discriminate against any person on the basis of race, color, national origin, religion, handicap, sex, sexual orientation or familial status m the provision of Cable Services, m the receipt of benefits from Company's Cable Busmess, m any opportunities for employment with Company that Company may offer or m the construction or installation of Company's Cable Television System or other Facilities. 22. NO WAIVER The failure of the City to insist upon the performance of any term or provision of this Franchise or to exercise any rights that the City may have, either under this Franchise or the law, Page 41 Cable Franchise Agreement with WideopenWest Texas, LLC shall not constitute a waiver of the City's nght to insist upon appropriate performance or to assert any such nght on any future occasion. 23. GOVERNING LAW AND VENUE. This Franchise shall be construed pursuant to and in accordance with the laws of the United States of Amenca and the State of Texas. If any action, whether real or asserted, at law or m equity, anse out of the terms of this Franchise, Company's provision of Cable Services or Company's use of the Public Rights-of--Way, venue for such action shall lie exclusively m state courts located in Tarrant County, Texas or the United States Distract Court for the Northern Distract of Texas, Fort Worth Division. 24. CONFERENCES. At the request of either the City or Company, the City and Company shall meet at reasonable times and upon reasonable notice to discuss any aspect of this Franchise, Company's provision of Cable Services, Company's Systems or Cable Business or Company's use of Public Rights-of--Way 25. SEVERABILITY If any provision of this Franclise is held to be invalid, illegal or unenforceable by a final order entered by a court of competent ~unsdiction, the validity, legality and enforceability of the remaining provisions shall not m any way be affected or impaired. For purposes of this Franchise, a court order shall be final only to the extent that all available legal nghts and remedies pertaining to such order, including, without limitation all available appeals, have been exhausted. In such an event, the City and Company agree that they shall amend or have amended this Franchise to comply with such final order entered by a court of competent ~unsdiction. 26. FORCE MAJEURE. In the event Company's performance of any of the terms, conditions or obligations required by this Franchise is prevented by a cause or event that is not within Company's reasonable control, Company's non-performance shall be deemed excused for the penod of such inability Causes or events that are not within the Company's control shall include, but not be limited to, acts of God, strikes, sabotage, pots or civil disturbances, failure or loss of utilities, explosions and natural disasters. Page 42 Cable Franchise Agreement with WideOpenWest Texas, LLC 27. HEADINGS NOT CONTROLLING. Headings and titles, other than those captions m Section 1, that are used m this Franchise are for reference purposes only and shall not be deemed a part of this Franchise. 28. ENTIRETY OF AGREEMENT. This Franchise, including the schedule of exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Company as to the matters contained herein. Any pnor or contemporaneous oral or wntten agreement is hereby declared null and void to the extent in conflict with the terms and conditions of this Agreement. This Franchise shall not be amended unless agreed to m wntmg by both parties and approved by the City Council of the City 29. GUARANTEE OF PERFORMANCE. Company hereby acknowledges that rt carefully has read the terms and conditions of this Franchise and accepts and agrees to perform the duties and obligations set forth m this Franchise. WideOpenWest Texas, Inc. and WideOpenWest Holdings, LLC hereby jointly and severally guarantee unconditional performance of Company's duties and obligations under this Franchise. WIDEOPENWEST TEXAS, LLC Title. ~jQ.V tc.~ pQE51 Dd,~T'~ ~~C WIDEOPENWEST TEXAS, INC. By. ~~~ Title <<j'~,, J tG~ ~R.~S I D~ ~ ~~L~k~~ WIDEOPENWEST HOLDINGS, LLC By• ~%~~~ Name. /y1lt'/L/[ ~/~v~e2/~~ Title. G£c~ Page 43 Cable Franchise Agreement with WideOpenWest Texas, LLC Exhibit "A" to Franchise Agreement CONSTRUCTION SCHEDULE 1. Phases and Service Areas. 1.1. Initially. Company shall build its Cable Television System m five (5) phases as shown m the maps at the end of this Exhibit "A" (each a "Construction Phase") Each Construction Phase covers a particular section of the Crty and each such section of the Crty is included in Company's Service Area. Certain commercial, mdustnal and tightly populated sections of the Crty that do not receive cable service from Charter Communications as of the date of adoption of the Franchise Ordinance are not included m Company's Service Area. These sections of the City will be identified by census tract m wasting before the Franchise Ordinance takes effect. Company shall provide Cable Service to these areas of the Crty m accordance with Sections 2.2 and 7 17 of the Franchise. Any census tract within the corporate hmrts of the City that is not identified by census tract in wasting before the Franchise Ordinance takes effect shall automatically be deemed to be covered m the five (5) Construction Phases shown in the maps at the end of this Exhibit "A" and located wrthm Company's Service Area for all purposes. 1.2. Extensions of System. Company shall extend its System to any particular square mile of land wrthm the Crty that is not covered m the five (5) Construction Phases shown in the maps at the end of this Exhibit "A" wrthm six (6) months after fifty (50) residential units, whether smgle- family or multi-family, are built wrthm that square mile of land, regardless of whether that square mile of land was located wrthm the City's corporate hmrts on the effective date of the Franchise Ordinance or annexed subsequently, and any such section of the City shall be deemed a part of Company's Service Area for all purposes. 2. Schedule. Company shall complete each Construction Phase of the System by the dates indicated on the table below (the "Build-out Schedule") Phase Number Estimated Miles of Plant Deadline for Completion of Construction 1 400 miles November 30, 2001 2 700 miles December 31, 2002 3 300 miles June 30, 2003 4 300 miles December 31, 2003 5 450 miles September 30, 2004 Page 1 Exhibit "A" Cable Franchise Agreement with WideOpenWest Texas, LLC 3. Desi n. 3.1. Initial Approval by City. Prior to commencement of System construction m any g>,ven Construction Phase, Company shall submit abuild-out plan for the respective area of the City covered by such Construction Phase The plan shall include construction drawings and a map of the area that shows the location of any headend, all subnngs, hubs and routing centers and the proposed distribution of all fiber rings, nodes, distribution lines, including termination points, of the System. The Crty shall have thirty (30) calendar days to review the build- out plan for any given Construction Phase in order to assess (i) potential inconvenience to the public and users of the Public Rights-of--Way and (ii) anticipated costs to the City, if any, of the I-NET If the City has reasonable objections to any aspect of the build-out plan, the City and Company shall negotiate m good faith a solution to the City's objections, in which case Company shall complete the solution agreed upon within a reasonable amount of time. If Company's build-out of a particular Construction Phase is delayed by more than thirty (30) calendar days as a result of this procedure, the Build-out Schedule shall be adjusted by the number of days beyond such thirty (30) calendar days that Company was required to use m order to complete the agreed upon solution to the City's objections. 3.2. Completion of Construction Phases. Company shall comply with all requirements of the City's Transportation/Pubhc Works Department with regard to inspection of Company's System during the Construction Phases. Once Company completes a particular Construction Phase of construction and fulfills all I-NET requirements for I-NET Sites and TCDs located m that Construction Phase area, Company shall submit a certification of completion to the Crty Manager as soon as practicable The City shall not issue Company any permits for construction of its System m an section of the Crty located m another Construction Phase area until the Crty has approved m writing Company's certification of completion for the then-current Construction Phase, which approval shall be provided to Company within thirty (30) calendar days unless the Crty has reasonable objections, m which case the City and Company shall negotiate m good faith a solution to the City's objections, m which case (i) Company shall complete the solution agreed upon and resubmit a certification of completion in accordance with the procedure previously described and (ii) the construction deadlines set forth m the table above shall be adjusted to take into account the amount of time beyond thirty (30) calendar days that lapsed as a result of Company's having to complete the solution to the City's objections with Company's original certification of completion. Page 2 Exhibit "A" Cable Franchise Agreement with WideOpenWest Texas, LLC 3.3. As-Built Drawings: Within ninety (90) calendar days following completion of construction m a particular Construction Phase area, Company, at Company sole cost and expense, shall supply the Director of the Crty's Transportation/Pubhc Works Department or authorized representative with. as-built drawings, plans and maps of any Facilities placed m, on, under or above any Public Right-of--Way Following completion of the System, Company shall supply the Director of the City's Transportation/Pubhc Works Department or authorized representative on at least an annual basis with as-built drawings, plans and maps of any Facilities placed m, on, under or above any Public Right-of--Way during the previous year Company shall supply the textual documentation of such as-built drawings, plans and maps m computer format as requested by the City and shall otherwise fully cooperate with the City m ensuring that Company's Facilities are accurately reflected in the City's mapping system. 4. Liquidated Damages for Non-Completion. Company acknowledges and agrees that its failure to comply strictly with the Build-out Schedule will (i) delay the benefits of competition m the provision of Cable Service in the City; (ii) result m substantial inconvenience to users of the Public Rights-of--Way; (iii) require unplanned additional administrative oversight and involvement by the City; and (iv) otherwise harm potential subscribers and the City, and Company agrees that the amounts of actual damages therefrom will be difficult or impossible to ascertain. Therefore, if Company fails to complete any given Construction Phase of the System by the deadlines established by the Build-out Schedule, Company shall pay the City, as liquidated damages, the sum of five hundred dollars ($500 00) per day from the day following the respective deadline to and including the day that the City approves in writing Company's certification of completion for the respective Construction Phase. Company acknowledges and agrees that the liquidated damages set forth below are a reasonable approximation of actual damages and that this Section 4 is intended to provide compensation for damages and is not a penalty The City shall assess such liquidated damages m accordance with the procedure set forth m Section 9 7 of the Franchise Agreement and Company shall pay such liquidated damages in accordance wzth Section 9 8 of the Franchise Agreement. Page 3 Exhibit "A" Cable Franchise Agreement with WideOpenWest Texas, LLC Maps Depicting Company's Service Area The seven (7) maps that follow indicate Company's Service Area wrthm the City Cross- hatches on each map indicate areas wrthm the corporate hmrts of the Crty as of the date of adoption of the Franchise Ordinance that are not included m Company's Service Area. Page 4 Exhibit "A" Cable Franchise Agreement with WideOpenWest Texas, LLC '+o '~ I. y ~ ~ {y / ~ V m w a ,,, w x w ~ ~~ w r~ x ,~=. ~ , cwn ~ ~ ~w ax.~ o '~ ,: ~; r~ ~- w x w ~< ~, w x ~• ~~ ~~ ., ~~ .~- ~'..;., ~.~ t.B..l " k F._ _ ~ .._ ._ ~. _. ...~ S ,~•~_ ~ - S r~. /~~ bV ~ .. ~ { 1/~~~ ~1 i 'Y' r _ ~ __.', ~' .~ ~ O s •~ ~ w € ~ ~ `~ V ~~ $ € _, ~ ~;Q r.-- ~ ~-~ ~" ~r ~_.. ~ z ___.... ~[~ T`~-~ `~ ~~.~ ..: .. ~- ;~ 0 ~ _~',~ ~~ ~t, Ir! ~~ ,,- _ `~' ~-~ ~ -p __• w ~ ~ E ~ ~ ~ ` ~ ~ ~~ ~~~~ J .~„,~ y ~ ~~ e ~ t- _r- ~ ~ ~ ~ i ~ i~ I,, ~ ~ ,_ .~, -~--~yy ~~_. r~ ^~$'"~ .. r..... 3~{U I c-mae-._,~ u~au~uvc~vrm++~~l.:~ ~..~. E: -~ ~ Y_ [' .. r _ ~ ~ T "'g46' _~•_ ' "~ -...: 4- ~,- . r ;. .... Lt ~~t~ - b 3 ~~ y.. ~. ~ ~~ ~ _ x~ ,i .._ ,.. - .. _, ~< .~ ` F ~~' ' .r.- .. .--. 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I `_ 3< _.~.. _ .~ ~: ~ ~ t ..~ , ryv ~ -~ t- ; S ---t - a- ~ ~c a ~ t -~ ~ .,~- t ~~... ~ € ..~.._._ _, 'yet .~ ~ ,...~. g E r ~ ~ 4 1 3 ~ p{ g ~ I~1 ~y 1 <,~' =-may '~~~._~ _.v ~~ a-~. ~~~ V / `' ~~. _. ~ .. ~ ~, s Y € ~ x i ~ r i 16~k ~ i I r:~ ~ g g _ 1 :~~ ~r ~... ~ .~~ iii c`'. T ~ ~. O r ~. .n ,. ~ ~ ;` ~ ~, ~~ ~ ~ _~ , ~ ~ _' ~° - ~ ' -- s~......_ _ .~. _ ,.... ` ......_ .~ _. .~ .~ .. _. ~. w __ ..... ~ ~ _ 1 .._... _ O R ~_.. E ' ~~ 8 ~ ~ _S O ~ ~. ; ' r ~-,_,_~,~_ - - ~ E '~ ,~ - P .. s ~ O : .r "'f' r ~ ~i~ __ ~ ~ ~ ~ r ~ ~ ~ ~~ ' ~._ ~ w. .~ _._. ~ ~ .kJ t 3~~-'~ ~ ~'J~ W....} ~ y ~': ~., q ~~ ~ o, i ~ ,~..~._~.__ rl ., ~ ~. ,. a ""a ~ __y ~~ Exhibit "B" to Franchise Agreement INSTITUTIONAL NETWORK 1 City Facilities, Buildings and Traffic Control Devices Included in I-NET 1.1. Initial I-NET Sites and TCDs Served by I-NET. In accordance with the Franchise Agreement and this Exhibit B, Company, at no cost to the City, I-NET Users or subscribers, shall provide and construct, operate and maintain an I-NET to serve 129 Crty facilities and/or buildings ("I-NET Sites") identified in Table 1 of this Exhibit "B" and all traffic control devices ("TCDs") identified to Company by the Crty-dunng each Construction Phase of the System. With regard to the 129 I-NET Sites, Company shall pay the actual cost of installation of the frst five hundred (500) feet of fiber optic fiber installation from Company's fiber optic Facilities to any respective I-NET Site. The Crty shall pay only for the installation of fiber optic fiber over five hundred (500) feet from Company's fiber optic Facilities to any I-NET Srte based on a wntten final cost estimate provided to the City by Company With regard to all TCDs, Company shall pay the actual cost of installation of the first one hundred fifty (150) feet of fiber optic fiber installation from Company's fiber optic Facilities to any respective TCD In addition, Company shall pay all other costs and expenses associated with the provision, operation and maintenance of the overall I-NET 1.2. Additions and Changes to I-NET Sites and TCDs Served by I-NET. The Crty may from time to time identify or designate buildings and facilities other than the 129 locations identified on Table 1 of this Exhibit "B" as I-NET Sites with the understanding that any additional I-NET Sites beyond 129 locations to be served by the I- NET shall be added to the I-NET m accordance with Section 5 4 of the Franchise Agreement. Following completion of a Construction Phase, Company shall, at the City's request, add any given TCD located m the respective Construction Phase area to the I- NET maccordance with Section 5 4 of the Franchise Agreement. Following completion of the System, Company shall, at the City's request, add any given TCD located m Company's Service Area to the I-NET m accordance with Section 5 4 of the Franchise Agreement. 2. Signal Input Points. 2.1. Signal Input Point Locations. Company shall pay all costs and expenses associated with the connection of the I- NET from Company's head end to two (2) locations designated by the City (each a "Signal Input Point Location") The two Signal Input Point Locations designated by Page 1 Exhibit "B" Cable Franchise Agreement with WideOpenWest Texas, LLC the City as of the effective date of this Franchise Agreement are (i) the City's Municipal Building, located at 1000 Throckmorton and (ii) the City's Cable Communications Office, located at 401 W Second St. However, the City may at any time designate new Signal Input Point Locations to Company, m which case Company shall, at no cost to the Crty, I-NET Users or subscribers, promptly relocate Signal Input Points to such new Signal Input Point Locations. 2.2. Remote Signal Input Points. Company shall, at no cost to the City, I-NET Users or subscribers, provide two (2) remote Signal Input Points which are for the transmission by Company of a real time video signal to, at an I-NET User's sole option, (i) Company's head end at a location wrthm the City for simultaneous distribution on the System m the City or (ii) a Signal Input Point Location (for example, m order to allow an I-NET User's studio for tape- delayed or immediate distribution on a PEG Channel) 2.3. Signal Input Point Specifications. Unless otherwise specified by the City m writing, each Signal Input Point and remote Signal Input Point shall accept baseband composite video and, in the case of delivery of signals from a Remote Signal Input Point to the City's Municipal Building or Cable Commumcahons Office, deliver video signals m analog (6 MHz NTSC RF') format or m a video format (such as digital or HDTV) used from time to time by the I-NET User in question. Company, at Company's sole cost and expense, shall supply and maintain all fines, modulators, demodulators, encoders-decoders (CODECs), electric to optical converters, optical to electric converters and similar devices. 3. I-NET Design. 3.1. Design Specifications. For each I-NET Site and TCD, Company shall purchase and have installed wrthm the fiber optic cable packet or m a separate fiber optic cable packet a minimum of six (6) dark optical fibers [i.e. three (3) pair] interconnecting each of the I-NET Sites and TCDs m a star, ring, star/ring hybrid or point-to-point network architecture, as requested and approved m advance by the Crty m writing. I-NET Sites and TCDs will be connected to Company's hub site and an umbilical fiber cable that will be connected to Company's central hub site serving the City 3.2. Additional Fiber Pair. Without limiting any of the City's rights to obtain Incremental I-NET Fiber pursuant to Section 5 4 of the Franchise, for any I-NET Site or TCD that the City wishes the I-NET to support, the City may, at its option, require that Company purchase and provide an additional two (2) dark optical fibers [i.e one (1) pair] (the "Additional Page 2 Exhibit "B" Cable Franchise with WideOpenWest Texas, LLC Fiber") for a total of eight (8) dark optical fibers [i.e. four (4) pair] connecting such I- NET Site or TCD to Company's hub site; provided, however, that (i) the City shall pay Company's actual cost for the purchase of the Additional Fiber up to five cents ($0 OS) per fiber per foot and (ii) that Additional Fiber is available on the market at the time of such request. Company shall pay all other costs associated with the provision of the Additional Fiber and its connection as part of the 1-NET 3.3 Approval of Design. Company shall submit the architecture and design for the I-NET wrthm one hundred twenty (120) calendar days following the adoption of the Franchise Ordinance. Within thirty (30) calendar days following receipt of the architecture and design for the I- NET, the City shall respond to Company with approval or a reasonable request for re- design. If the City approves the design, the City shall advise Company of the portions of the I-NET that the Company shall construct, activate and connect. If the City requests a re-design, the City shall provide a written reason for the request and Company shall accordingly revise and resubmit the architecture and design wrthm thirty (30) calendar days following receipt of the City's request. This procedure shall be repeated until agreement as to the architecture and design of the I-NET is reached. Company agrees that the City shall not issue any permits to Company or a contractor or subcontractor of Company .for any construction to the System until agreement as to the architecture and design of the I-NET has been reached. Company shall at all times provide technical design assistance to the City until the 1-NET has been completed. 3.4. Demarcation Points and Termination Hard Company shall purchase and install termination hardware at each I-NET Site and TCD, including standard connectors designated by the City and appropriately labeled. Company shall terminate the fibers on the termination hardware. Specifically, Company shall install the I-NET at demarcation points for each I-NET Srte and TCD with a rack or equivalent device purchased by Company and acceptable to the City installed to mount fiber optic connectors and patch panels provided and paid for by Company For I-NET Sites, the demarcation point or drop shall be situated at the I-NET Srte m accordance with the City's specifications. For TCDs, unless otherwise directed by the Crty, the demarcation point or drop shall be in a signal, camera or other type of field control cabinet designated by the Crty and m a manner acceptable to the City 4 Operational Standards. 4.1 In General. The I-NET shall support data, voice and video communications and shall operate at or above FCC standards at all times. The desired signal level variation shall be less than +/- 4 dBmv At the request of and at no cost to the Crty, Company shall provide and Page 3 Exhibit "B" Cable Franchise with WideopenWest Texas, LLC install signal-monitoring equipment to improve the automatic gam control m the outbound and inbound directions. 4.2. TCDs. The TCDs shall be smgle.mode and/or.multi-mode cable, to be determined by the Crty, m the City's sole discretion, -during the I-NET'S design and engineering phases. The TCDs shall operate with built-m redundancy and full duplex two-way communications as part of a wide area network comprising the City's Traffic Management System ("TMS") Company shall ensure (i) that the TMS is capable of communicating with any TCD.at a speed of at least once per second and (ii) that the City can view CCTV cameras attached to .any TCD simultaneously Nominal attenuation shall be 0 4 db/km at a wavelength of 1310 rim and attenuation .shall be 0.3 db/km at a wavelength of 1550 rim. Company may extend its fiber to a TCD using traffic signal conduit where available and if acceptable to the Crty 5. Acceptance Test Plans. Prior to the commencement of any construction on the System, Company and the City shall develop a written plan that outlines specific operational standards or guidelines that the City will require prior to acceptance by the Crty of the I-NET constructed m each Construction Phase. 6. I-NET Maintenance. Company, at Company's sole cost and expense, shall provide I-NET Users with a reliable level of service, repair and maintenance that, at a minimum, meets the following performance standards • Company shall maintain a minimum of 99 5 percent service availability to I-NET Users measured over a period of twelve (12) months. • Company and the Crty shall develop a mutually agreeable priority hshng of critical circuits and their terminal locations. When notifying Company of service complaints, an I-NET User shall identify critical circuits requiring priority repair Company shall respond to repair requests from I-NET Users for circuits identified as critical wrthm two (2) hours of the request. Company shall respond to other repair requests within four (4) hours of the request. • Company shall provide ongoing maintenance of the I-NET at its discretion and as rt deems necessary Except m emergency situations, Company shall provide at least one (1) week's advance notice to any affected I-NET User of any maintenance requiring temporary interruption of services. • Company shall provide stand-by power capable of two (2) hours of operation in the event of a power outage. Page 4 Exhibit "B" Cable Franchise with WideOpenWest Texas, LLC L .` I.L N d N d O O. O a` Y O a .c Q 0 0 Q N N N N N st V N (A M N r O N O O O O. 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C,a~tenun~cAt~ian DATE REFERENCE NUMBER LOG NAME PAGE 8/15!00 L-12869 02W1DEOPEN 1 of 1 suB~EC-r ORDINANCE GRANTING A FRANCHISE TO WIDEOPENWEST TEXAS, LLC FOR USE OF PUBLIC RIGHTS-OF-WAY FOR THE PURPOSE OF CONSTRUCTING, MAINTAINING AND OPERATING A CABLE TELEVISION SYSTEM AND RELATED FRANCHISE AGREEMENT RECOMMENDATION It is recommended that the City Council adopt the attached ordinance granting a franchise to WideOpenWest Texas, LLC for the use of the public rights-of-way for the purpose of constructing, maintaining and operating a cable television system in the City of Fort Worth DISCUSSION On January 24, 2000, WideOpenWest Texas, LLC (WideOpenWest) filed an application with the City for a cable franchise to provide cable service in the City The City began negotiations with WideOpenWest in February 2000 The proposed franchise requires WideOpenWest to expand its facilities in a systematic fashion so that it will be able to serve a majority of the City by the completion of construction in the year 2004 The franchise requires that WideOpenWest provide service in all sectors of the City in which there are 50 residences in any given square mile. The franchise will be for a term of 15 years WideOpenWest will pay the City a quarterly franchise fee equal to 5% of its gross revenue derived from the portion of its cable system located in the City WideOpenWest will also construct an institutional network for the City, which will enable the City to expand its communications system to 129 various locations including police storefronts, fire stations, branch libraries and other facilities as well as to aft traffic signals within 150 linear feet of WideOpenWest's facilities WideOpenWest wilt have materially the same customer service requirements as other cable franchise holders and will be subject to the assessment by the City of liquidated damages, calculated in the same manner, for violations of those customer service requirements. FISCAL INFORMATIONICERTIFICATION The City Manager's Office will be responsible for the collection of the franchise fee RG k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) ~pp+~OVED Ramon Guajardo 6140 ~~ ! i G®UIV~,S~~ Originating Department Head: ~+ l.l~a 1~.I.~73~ AUG 15 2000 Pat Svacina 6415 (from) ~a«~/ Additional Information Contact: ~v t~~ at ~r S m q erxe City ` ~E•'2..5 E°ii$}* C1t~ f~Ort ~fnrtl'i, Pat Svacina 6415 Adopted Or~a~ir~c~ biz. l y ~d 0