A CABLE FRANCHISE AGREEMENT
BETWEEN THE COUNTY COMMISSIONERS OF
CHARLES COUNTY, MARYLAND
AND COMCAST CABLEVISION OF MARYLAND, INC.
June 5, 2002
CABLE FRANCHISE AGREEMENT
CHARLES COUNTY, MARYLAND
Page
1. DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cable Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Effective Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Franchise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Franchise Agreement or Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Franchise Area. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Franchisee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Gross Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Upgrade Option. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
2. GRANT OF AUTHORITY; LIMITS AND RESERVATIONS. . . . . . . . . . . . . . . . . . . . .4
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Grant of Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Area Served. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Term of Franchise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Grant Not Exclusive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . Franchise Agreement Subject to Other Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . Franchise Agreement and Cable Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Approval and Effective Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Effect of Acceptance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
3. SYSTEM FACILITIES, EQUIPMENT AND SERVICES. . . . . . . . . . . . . . . . . . . . . . . . .6
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Cable System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Line Extension Requirements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Mid-Term Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
4. CHANNELS AND FACILITIES FOR PUBLIC, EDUCATIONAL AND GOVERNMENTAL USE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access Channels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Training Channels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
(c). . . . . . . . . . . . . . . . . . . . . . .Capital Grants for Access Equipment and Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access Studio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cable Service to Certain Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Harm to Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Institutional Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Costs and Payments Not Franchise Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
5. FRANCHISE FEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payment to County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . Not a Tax or in Lieu of Any Other Tax or Fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .No Accord or Satisfaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
6. PERFORMANCE GUARANTEES AND REMEDIES. . . . . . . . . . . . . . . . . . . . . . . . . . 39
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Performance Bond and Letter of Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Remedies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liquidated Damages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Amount of Liquidated Damages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
7. MISCELLANEOUS PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Binding Acceptance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Severability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Compliance With Federal and State Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Franchisee Bears Its Own Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Comcast-AT&T Merger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Captions and References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
CABLE TELEVISION FRANCHISE AGREEMENTBETWEEN THE COUNTY COMMISSIONERS OF
CHARLES COUNTY, MARYLAND
AND COMCAST CABLEVISION OF MARYLAND, INC.
THIS CABLE FRANCHISE AGREEMENT (the “Franchise Agreement”) is entered into by and between the County Commissioners of Charles County, Maryland (“County”), a body politic and corporate, and Comcast Cablevision of Maryland, Inc., a Colorado corporation (“Franchisee”).
WHEREAS, Franchisee currently operates a cable system in the County; and
WHEREAS, the construction, installation, maintenance and operation of such a system involves the occupation of and placement of private commercial facilities in the Public Rights-of-Way within the County; and
NOW, THEREFORE, in consideration of the County's grant of a franchise to Franchisee; Franchisee's promise to provide Cable Service to residents of the County pursuant to and consistent with the Cable Ordinance; the terms and conditions set forth herein, the promises and undertakings herein, and other good and valuable consideration, the receipt and the adequacy of which is hereby acknowledged;
THE SIGNATORIES DO HEREBY AGREE AS FOLLOWS:
Except as otherwise provided herein, the definitions and word usage set forth in the Cable Ordinance are incorporated herein and shall apply in this Agreement. In addition, the following definitions shall apply:
: The County Cable Communications Regulatory Code [insert legislative reference].
: “Effective Date” shall have the meaning indicated in Section 2(g).
: The franchise granted pursuant to this Agreement.
(d) Franchise Agreement or Agreement
: This contract and any amendments, exhibits or appendices hereto.
: The entire present territorial limits of the County and any area annexed thereto during the term of the Franchise.
: Comcast Cablevision of Maryland, Inc., a Colorado corporation, and its lawful and permitted successors, assigns, and transferees.
. Any and all cash or other consideration of any kind that constitute revenue in accordance with generally accepted accounting principles derived from the operation of the franchisee's cable system to provide cable services in the franchise area by the franchisee or any other entity that receives such revenue. Gross revenues, to the extent derived from the operation of the franchisee’s cable system to provide cable services in the franchise area, include, by way of illustration and not limitation, monthly fees charged subscribers for any basic, optional, premium, per-channel, per-program service, or cable programming service; installation, disconnection, reconnection, and change-in-service fees; revenues from Internet services that are considered to be cable services under applicable law; leased channel fees; administrative fees; revenues from rentals or sales of converters or other equipment; to the extent directly connected to the cable system facilities, studio and production equipment rental and related personnel fees; advertising revenues; revenues from program guides; revenues from the sale or carriage of other cable services; and revenues from home shopping and bank-at-home channels. Gross revenues shall not include any taxes on services furnished by the franchisee which are imposed directly on any subscriber or user by the state, County, or other governmental unit and which are collected by the franchisee on behalf of said governmental unit. A franchise fee is not such a tax.
Gross Revenues shall not include (i) any compensation awarded to Franchisee based on the County’s condemnation of property of the Franchisee; (ii) any consideration paid by the County to the Franchisee for the Institutional Network as set forth in Section 4(g), or any expense reimbursement paid by the County or its agents, or by PEG users, to the Franchisee under that Section; or (iii) any uncollected receipts (i.e., “bad debt”), provided, however, that (A) all or any part of such actual bad debt that is written off but subsequently collected, and (B) any late fees offset against such bad debt, shall be included in Gross Revenues in the period collected or offset.
: This term shall have the meaning given to it in Section 3(c)(3) herein.
2. GRANT OF AUTHORITY; LIMITS AND RESERVATIONS
. Upon passage by the Board of County Commissioners of an ordinance granting a franchise to Comcast, Comcast will be granted a franchise subject to the terms and conditions of this Franchise Agreement, and subject to the Cable Ordinance and all other applicable law. The franchise will be for the period specified in Section 2(c) below, during which time Comcast will receive the franchise, authority, right and privilege to construct, reconstruct, operate and maintain a cable television system within the public rights-of-way in those areas of the County specified in Section 2(b) for the sole purpose of providing cable service. If for any reason whatsoever the Board of County Commissioners does not pass such an ordinance, this Franchise Agreement will be of no further force and effect.
(1) The Franchise is granted for the Franchise Area defined herein.
(2) The Franchisee shall build its system so that it is able to provide service to all areas located within the County limits as they existed on the Effective Date, subject to the line extension conditions of its Franchise Agreement.
. The Franchise and this Franchise Agreement shall extend for a term of fifteen years, commencing on the date executed below by the Franchisee, unless the Franchise is earlier revoked as provided herein or in the Cable Ordinance.
. This franchise shall not be construed as any limitation upon the right of the County to grant to other persons or entities rights, privileges and authority similar to or different from the rights, privileges and authority granted to Franchisee, provided, however, that if after the Effective Date the County grants a franchise for an area of the County overlapping the area served by the Franchisee on different terms and conditions, the Franchisee and the County shall enter into good-faith negotiations to ensure that the franchise granted pursuant hereto and such new franchise do not on the whole impose more than a minor competitive disadvantage on either operator.
(e) Franchise Agreement Subject to Other Laws
. The Franchisee shall comply at all times with the requirements of this Franchise Agreement and with the Cable Ordinance, as well as with all applicable federal, state and local law. The franchise granted under this Franchise Agreement shall be subject to regulation by the County in accordance with the provisions of the Cable Ordinance and this Franchise Agreement.
(f) Franchise Agreement and Cable Ordinance
. In the event of any conflict between the provisions or meanings of the terms of this Franchise Agreement and the Cable Ordinance, the latter shall prevail, unless specifically provided to the contrary in this Franchise Agreement or any written amendment thereto. However, subject to the County’s lawful police powers, the County may not alter any of the Franchisee’s material rights, benefits, obligations, or duties specified in this Franchise Agreement. The County shall provide the Franchisee with notice and opportunity to comment prior to any change in the Cable Ordinance and shall notify the Franchisee promptly after it makes any such change.
(g) Approval and Effective Date
. This Franchise Agreement shall become effective upon its approval by the Board of County Commissioners and execution by the Franchisee.
: The Franchisee explicitly acknowledges and accepts the right of the County to issue and renew this franchise, and the Franchisee agrees it shall not now or at any time hereafter challenge this right in any way, or in any court of competent jurisdiction.
3. SYSTEM FACILITIES, EQUIPMENT AND SERVICES
. The Franchisee’s Cable System shall have at least the following capabilities:
(1) The System shall have a minimum bandwidth of 860 MHz on all active components and at least 1 GHz for all passive components.
(2) Fiber-optic node size shall be no more than 1,200 homes per node. Within thirty days after the Effective Date, the Franchisee shall provide the County with a report indicating the actual sizes, in homes per node, of each node serving the County.. The System shall be designed and constructed so that each node may be reduced in size, as demand warrants, to half the number of homes per node indicated in such report, without significant further construction.
(3) There shall be no more than seven active components in a cascade from any node on the System.
(4) The System shall be two-way activated.
(b) Line Extension Requirements.
(1) The Franchisee must extend its cable system upon request to provide service to any residence in the County upon request, without charging such person more than the standard installation charges, subject to the provisions of paragraphs 3(b)(2) and 3(b)(3), unless the Franchisee demonstrates to the County's satisfaction that extraordinary circumstances justify a waiver of this requirement.
(2) For areas within the County that are unserved on the effective date of its franchise, the Franchisee shall extend its cable system within a reasonable time (but not to exceed ninety (90) days) to provide service to any residence upon request at no charge other than any applicable installation fees for the individual Subscriber's drop, as long as the following conditions are satisfied, unless the Franchisee demonstrates to the County's satisfaction that extraordinary circumstances justify a waiver of this requirement:
(A) the new Subscriber requesting service is located 225 feet or less from the subscriber network distribution plant, and
(B) the number of potential Subscribers to be passed by the extension necessary to serve such subscriber is equal to or greater than twenty homes per mile measured from the subscriber network distribution plant.
(3) Cost sharing. In the event that the requirements set forth in Section 3(b)(2) are not met, the Franchisee shall extend its cable television system to serve a Subscriber if the Subscriber (who may recruit other affected Subscribers to help bear the cost) is willing to share the cost of the extension, according to the following formula: The percentage by which the actual number of homes per mile on the extension falls short of the twenty homes per mile specified in Section 3(b)(2)(B) is the percentage of the total construction costs that must be borne by the Subscriber.
(A) The “total construction costs” are defined as the actual turnkey cost to construct the entire extension including electronics, pole make-ready charges, and labor, but not the cost of the house drop.
(B) Thus, for example: To reach a requesting Subscriber requires an extension of two miles. That extension contains twelve homes. Because the proposed extension contains only 30% of the total number of homes specified in Section 3(b)(2)(B) for required service (20 homes per mile or 40 homes over two miles), the Subscriber, with any other affected Subscribers who wish to contribute, must pay the remaining 70% of the cost.
(C) If the Franchisee proposes to require a person requesting extension to make a contribution in aid of extension, it must (1) notify the County in advance; (2) provide a detailed cost quotation to all potentially affected persons; (3) send the County an invoice showing the amount actually charged each person requesting extension; and (4) within 30 days of completion of the extension, furnish proof of the total cost of the extension.
(1) In addition to any periodic performance evaluations conducted pursuant to Section 5(m) of the Cable Ordinance, the County may also conduct a mid-term technical review of a franchisee's cable system once during the franchise term. The Franchisee shall fully cooperate and assist the County in conducting such review.
(2) The County may commence the mid-term review process at any time after the beginning of the tenth year of the Franchise term. The County may issue an Upgrade Order, as defined herein, at any time after the end of the tenth year of the Franchise term.
(3) Purpose: The purpose of the mid-term technical review shall be to evaluate the technical performance and capabilities of the Franchisee's system to determine whether to require a system upgrade to conform with technical improvements then commonly in use in the industry and available on systems in communities similar to the County. Subject to the provisions of this Section 3(b), the County may amend this Agreement to require the Franchisee to upgrade its system to incorporate technical improvements (the “Upgrade Option”).
(4) County's Initial Review: To determine whether to invoke the Upgrade Option, the County shall first commence a review of the cable system. Such review shall be conducted to enable the County to determine whether the cable system should be upgraded or rebuilt. This determination shall be based upon the reasonable cable-related needs and interests of the community, considering the costs to the Franchisee of meeting those needs and interests.
(5) Franchisee's Report: To assist in the County's initial review, the Franchisee shall, at the County's request, promptly submit a report to the County describing advances in cable technology nationwide, the potential benefits and disadvantages of those advances for consumers, and any plans or timetables the Franchisee may have for instituting such changes in technology.
(6) Public Hearings: If, after conducting its initial review, the County determines that a system upgrade may be warranted, it shall hold at least two public hearings to enable the general public and the Franchisee to comment and to present additional information.
(7) Upgrade Order: Following such hearings, the County shall determine whether the exercise of the Upgrade Option is warranted, based upon the reasonable cable-related needs and interests of the community, considering the costs to the Franchisee of meeting those needs and interests. The County shall issue a written order (“Upgrade Order”) stating whether an upgrade is required, describing any upgrade to be implemented, and setting forth the basis for its decision. If an upgrade is required, the County shall set forth any relevant conditions.
(8) Franchisee's Response. Within sixty (60) days after the County issues the Upgrade Order, the Franchisee shall notify the County in writing whether it will comply with the Order. If the Franchisee does not so notify the County within sixty (60) days, the Franchisee will be deemed to have agreed to comply with the Upgrade Order.
(9) Amendment of the Franchise Agreement. If the Franchisee agrees to comply with the Upgrade Order, the parties shall amend this Agreement accordingly.
(10) Rejection of the Upgrade Option. If, however, the Franchisee is unwilling to comply with the Upgrade Order, the Franchisee shall, as its sole remedy, notify the County in writing as part of the response specified in Section 3(c)(8), pursuant to Section 626 of the Cable Act, that it wishes to commence proceedings to renew the Franchise. If, at the time of such notice, more than three (3) years remain in the term of the Franchise, such notice shall be deemed, by mutual agreement, to shorten the term of the Franchise and this Agreement so that the Franchise and the Agreement shall terminate thirty-six months from the date of the notice.
4. CHANNELS AND FACILITIES FOR PUBLIC, EDUCATIONAL AND GOVERNMENTAL USE
(1) The Franchisee shall make available to all Subscribers on its system four (4) video channels for public, educational and governmental use, as determined by the County, which channels shall be in addition to any capacity provided on the Institutional Network.
(2) The franchisee will provide any access channels on the basic tier throughout the life of the Franchise, or if there is no basic tier, shall provide the access channels as part of the lowest-cost package it offers to Subscribers. If channels are selected through a menu system, the access channels shall be displayed.
(3) Access channel assignments shall be the same throughout the system. The Franchisee shall use its best efforts to cooperate with any other cable operators to ensure that Access Channel assignments are the same for all cable systems in the County. Access channel assignments should not be changed unless there is good cause. Any such reassignment must be to a channel of technical quality at least equivalent to that of other channels on the system. In the event of such a reassignment, the Franchisee shall pay the reasonable costs of all equipment, advertising, and promotional materials required due to the reassignment, including the need to educate viewers as to the reassignment.
(4) A Public Access Channel shall be for the display of public, educational and governmental programming produced or sponsored locally by residents, organizations and institutions within the County. The production and scheduling of such programming shall be on a first-come-first-served basis, according to reasonable rules governing the use of studio facilities and the Public Access Channel by the entities managing such facilities and Channel, and according to the provisions herein.
(5) An Educational Access Channel shall be for the use of the educational community of the County. The County may adopt reasonable rules regarding the use of this Channel.
(6) A Governmental Access Channel shall be for the use of the County. The County may adopt reasonable rules regarding the use of this Channel.
(7) If capacity dedicated for PEG use pursuant to Section 4(a)(1) of this Agreement is subdivided or compressed resulting in multiple transmission paths, the Franchisee may reclaim for its own use 50% of the initial PEG capacity. For purposes of this subsection, the capacity dedicated to a PEG Channel prior to such subdivision or compression refers to a 6 MHz channel.
(8) The County agrees that its designated Public, Educational and Governmental access Channels or other facilities and its I-Net facilities are not to be used for commercial purposes. Use of the I-Net is not "commercial" solely because a County entity or agency has more revenues than expenses, or because the activity in which it is engaged is provided on a for-profit basis by private entities in other communities or the County. Nothing prevents the County from authorizing charges to users or viewers to pay for such non-commercial services such as fees for video class instruction or charges to recover the cost of special use equipment, or the cost of the I-Net, or as they may be required to charge under applicable law.
(1) By December 31, 2002, the Franchisee shall provide, in addition to the four access channels required by the Ordinance, two digital Access Channels for purposes of training.
(2) Such channels shall be encoded or encrypted in such a way that the programming can only be viewed at authorized addresses.
(3) The Franchisee shall provide all necessary video compression, scrambling, and other equipment at the headend necessary to provide the two digital Access Channels to all the sites that the Franchisee provides with cable service pursuant to Section 4(e) herein.
(4) The Franchisee shall also provide any decoding, unscrambling, or other equipment necessary to view such channels at all the sites that the Franchisee provides with cable service pursuant to Section 4(e) herein.
(5) The channels and equipment provided under this Section 4(b) shall be without cost to the County or any user.
(c) Capital Grants for Access Equipment and Facilities