HomeMy WebLinkAboutcomcastAGENDA ITEM SIIMMARY
REGIILAR MEETING DATE: December 16. 2009
AGENDA ITEM TITLE: A Resolution ofthe Board ofCounty Conunissioners of
Pitkin County Approving a Cable Franchise Agreement
with Comcast of Colorado/Florida Inc.
STAFF RESPONSIBLE: Pat Bingham, Community Relations Coordinator
This is a second reading and public hearing on a resolution approving a cable franchise
agreement with Comcast of Colorado/Florida Inc.
BACKGROUND: Federal Law reyuires cable providers to "ineet the needs and interests of the
communities in which they operate." The County has a regulatary role in ensuring the
availability of cable service, technical capability and reliability of systems in its jurisdiction, the
availability of local programming (including Public, Educational and Government Access
progranuning) and yuality customer service. In retuni, the cable providers secures riglrts-of-way
for installing, constnicting, repairing and replacing eyuipment necessary to provide cable
services in our area.
In 2007 a supplemental budget request was prepared by County's Translator Department for
consultants to assist in negotiations for renewal ofthe Cable Franchise Agreement with Comcast.
The Board approved the supplemental reyuest and negotiations began. As part of the negotiation
process Pitkin County held meeting with focus groups including but not limited to PEG
providers, schools, local governments, stakeholders and the community concerning cable
television and communication needs and interests assessments.
The county has engaged in lengthy negotiations with Comcast and staff reconunends approval of
the agreement.
LINIi TO STRATEGIC PLAN:
Govermnent television is critical to the county's community involvement efforts. It is not only
used to televise BOCC regular meetings and wark sessions, it is used to raise awareness about a
myriad of county programs and the people who implement them. CGTV Channel 11 is shared by
Pitkin County, the City of Aspen and Town of Snowmass.
In addition, Comcast Chamiel 8 is an important feature ofthe Public, Education and Govenunent
(PEG) aspect of the television franchise. It has become a much sought a$er source of
information about airline arrivals and departures at the Aspei~/Pitkin County Airport.
GrassRoots Channel 12 fiilfills the public portion of the "PEG" with progranuning catering to a
wide range of public interests.
BUDGETARP IMPACT: Under the terms of the proposed Agreement, the county will receive
an upfront sum of approlimately $9000.00 from a.50 cent surcharge. These fees can only be
used for equipment. Staff recommended the upfront sum in order to have funds on hand for
necessary equipment upgrades or repairs. After Comcast has collected the upfront sum, the
county will receive the .50 surcharge quarterly. Franchise fees should remain the same provided
there is not a loss of subscribers. These fees are approYimately $80,000.00 ammally.
RECOMMENDED BOCC ACTION:
Approve at second reading and public hearing on December 16, 2009.
ATTACHMENTS:
Draft Resolution
Copy of Proposed Cable Renewal Agreement in BOCC's Read Box, County Clerk and
Recorders' Office and the County Attorney's Office
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF PITKIN COUNTY, COLORADO, APPROVING A FRANCHISE AGREEMENT WITH
COMCAST OF COLORADO/FLORIDA INC.
RESOLUTION NO. -2009
1. By Ordinance # 99-27, the Board of County Conunissioners of Pitkin County recognized
its general authority to enter into Franchise Agreements for provisions of cable television
services.
2. I~i 1999 Pitkin County entered into a Cable Franchise Agreement with TCI Cablevision
ofNortheni New Jersey, Inc. d/b/a/ AT&T. In 2003 AT&T Broadband merged with Comcast
Corporation resulting in a name change of our local cable operator to Comcast of
Colorado/Florida ("ComcasY'). Terms and conditions of the Agreement remained the same.
3. In 2007 the County began renewal negotiations with Comcast pursuant to the
reyuirements ofTitle 47 ofthe U.S.C.A.
4. It is in the best interest ofthe County to approve the Cable Franchise Agreement with
Comcast.
5. A complete copy ofthe Cable Franchise Agreement is available for inspection atthe
County Clerk and Recorder's Office at 530 E. Main Street, First Floor Aspen, CO 81611.
NOW, THEREFORE, BE IT RESOLVED thatthe Board of County Commissioners of Pitkin
County. Colorado hereby approves the Cable Franchise Agreement and authorizes the Chair to
sign the agreement in a form approved by the County Attorney's Office.
INTRODUCED, FIRST READ AND SET FOR PUBLIC HEARING ON THE
DAY OF 2009.
NOTICE OF PUBLIC HEARING PUBLISHED IN THE ASPEN TIMES WEEI~LI' ON THE
DAY OF 2009.
PUBLIC HEARING AND SECOND READING ON THE DAY OF
, 2009.
PUBLISHED AFTER ADOPTION IN THE ASPEN TIMES WEEI~LI' ON THE DAI'
OF . 2009.
ATTEST:
Jeanette Jones
Deputy Clerk & Recorder
APPROVED AS TO FORM:
Jolm Ely, County Attorney
RECOMMENDED FOR APPROVAL
BOARD OF COUNTY COMMISSIONERS
OF PITI~IN COUNTI', COLORADO
By
Patti Kay-Clapper, Chair
Date:
MANAGER APPROVAL:
Hilary Fletcher, County Manager
Pat Bingham, Community Relations
Coordinator
COMCAST OF COLORADO/FLORIDA, INC.
CABLE FRANCHISE AGREEMENT
PITKIN COUNTY, COLORADO
CABLE FRANCHISE AGREEMENT
CABLE FRANCHISE AGREEMENT
This Cable Franchise Agreement ("Agreement" or "Franchise") is entered into in Pitkin
County, Colorado, this day of , 2009, by and between Pitkin County,
Colorado hereinafter (the "County" or "Grantor") and Comcast of Colorado/Florida, Inc., who is
hereinafter known as "Grantee". The County and Grantee are sometimes referred to hereinafter
collectively as the "parties."
SECTION 1. RECITALS
1.1 Pitkin County is a Home Rule County and the Board of County Commissioners ("Board")
is authorized to exercise all of the powers enumerated in the Colorado County Home Rule
Powers Act (Section 30-35-101, et. se~. of the Colorado Revised Statutes) as well as other
County powers as provided by 1aw.
1.2 Pursuant to Section 30-35-201 (25) of the Colorado Revised Statues, the County has the
authority to grant franchises to companies to build and operate cable systems in the County.
1.3 The County has reviewed Grantee's performance under the prior Agreement and the
quality of service during the prior Agreement term, has identified the future cable-related needs
and interests of the County and its citizens, has considered the financial, technical and legal
qualifications of Grantee, and has determined that Grantee's plans for operating and maintaining
its System are adequate, in a full public proceeding affording due process to all parties.
1.4 The County has a legitimate and necessary regulatory role in ensuring the availability of
cable service, technical capability and reliability of systems in its jurisdiction, the availability of
local programming (including Public, Educational and Governmental Access programming) and
quality Customer service.
1.5 The County is authorized by applicable law to grant one or more nonexclusive
Agreements to construct, operate and maintain cable systems within the boundaries of the
County.
NOW, THEREFORE, in consideration of the mutual promises made herein, and other
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
County and Grantee do hereby agree as follows:
SECTION 2. DEFINITIONS
For the purposes of this Agreement, the following terms, phrases, words and their derivations
shall have the meanings given herein. When not inconsistent with the context, words used in the
present tense include the future, words in the plural include the singular, and words in the
singular include the plural. Words not defined shall be given their common and ordinary
meaning. The word "shall" is always mandatory and not merely directory.
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"Access" means the availability for Noncommercial use by various public, educational and
governmental agencies, institutions and organizations in the community, including the County
and its designees, of Channels on the System designated for such use as permitted under
applicable law:
(A) "Public Access" means Access where local institutions or residents are the
primary users having editorial control over programming and services.
(B) "Educational Access" means Access where Schools are the primary users having
editorial control over programming and services.
(C) "Governmental Access" means Access where governmental institutions or their
designees are the primary users having editorial control over programming and services.
(D) "Public. Educational and Governmental Access" or "PEG Access" means the
availability for Noncommercial use of capacity on a Channel or Channels on the Cable System
by various governmental and educational agencies and institutions and public organizations,
groups and individuals, including the County and its designees.
"Access Channel" means any Channel, or portion thereof, designated for Noncommercial
Access purposes or otherwise made available to facilitate or transmit Access programming.
"Af~liate" when used in connection with Grantee means any Person who owns or controls, is
owned or controlled by, or is under common ownership or control with Grantee.
"Agreement" means the document in which this definition appears, that is executed between the
County and Grantee, containing the specific provisions of the authorization granted and the
contractual and regulatory agreement created hereby.
"Bad DebY' means amounts lawfully owed by a Subscriber and accrued as revenues on the
books of Grantee, but not collected after reasonable efforts by Grantee.
`Basic Service" means any Cable Service Tier that includes, at a minimum, the retransmission
of local television broadcast signals and Access programming.
"Cable AcN' means the Cable Communications Policy Act of 1984, as amended by the Cable
Television Consumer Protection and Competition Act of 1992, and as amended by the
Telecommunications Act of 1996, and any amendments thereto.
"Cable Oaerator" means any Person or group of Persons, including Grantee, who provide
Cable Service over a Cable System and directly or through one or more Affiliates own a
significant interest in such Cable System or who otherwise control or are responsible for, through
any arrangement, the management and operation of such a Cable System.
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"Cable Service" means the one-way transmission to Subscribers of Video Programming, or
other programming service and Subscriber interaction, if any, that is required for the selection or
use of such Video Programming or other programming service.
"Cable Svstem" or "Svstem" means a facility, consisting of a set of closed transmission paths
and associated signal generation, reception and control equipment that is designed to provide
Cable Service that includes Video Programming and that is provided to multiple Subscribers
within a community, but such term does not include (1) a facility that serves only to retransmit
the television signals of one or more television broadcast stations; (2) a facility that serves
Subscribers without using any public Right-of-Way; (3) a facility of a common carrier that is
subject, in whole or in part, to the provisions of Title II of the Communications Act (47 U.S.C.
Section 201 et seq.), except that such facility shall be considered a cable system (other than for
purposes of Section 621(c) (47 U.S.C. Section 541(c)) to the extent such facility is used in the
transmission of Video Programming directly to Subscribers, unless the extent of such use is
solely to provide interactive on-demand services; (4) an open video system that complies with
federal laws and regulations; or (5) any facilities of any electric utility used solely for operating
its electric utility systems. When used herein, the term "Cable System" or "System" shall mean
Grantee's Cable System in the Franchise Area unless the context indicates otherwise.
"Channel" means a cable channel as defined in 47 U.S.C. Section 522 (4).
"DesiQnated Access Provider" means the entity or entities designated by the County to manage
or co-manage PEG Access Channel(s) and facilities. The County may be a Designated Access
Provider.
"Expanded Basic Service" means the level of cable programming services received by most
Subscribers above Basic Service and does not include premium or pay-per-view services.
"FCC" means the Federal Communications Commission or its lawful successor.
"Franchise Area" means the unincorporated area within the jurisdictional boundaries of the
County.
"Gross Revenues" means any and all revenue derived directly or indirectly by Grantee, or by
Grantee's Affiliates as determined in accordance with Generally Accepted Accounting Principles
(GAAP), from the operation of the Grantee's Cable System to provide Cable Services in the
Franchise Area. Gross Revenues include, by way of illustration and not limitation, monthly and
other fees charged Subscribers for Cable Services including Basic Service, Expanded Basic
Service, any Tiers of Cable Service, Premium Service, digital service, HDTV service, pay-per-
view, Cable Service installation, disconnection, reconnection and change-in-service fees, Leased
Access Channel fees, all Cable Service lease payments from the Cable System, late fees and
administrative fees, payments received by the Grantee from programmers for carriage of Cable
Services on the Cable System, revenues from rentals of converters or other Cable System
equipment, advertising revenues (including local, regional and national advertising carried on the
Cable System in the Franchise Area and net of commissions paid to an advertising agency),
revenues from program guides, additional outlet fees, franchise fees, revenue from interactive
services to the extent they are considered Cable Services under federal or State law, and revenues
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from home shopping. Gross Revenues shall include revenue received by any entity other than the
Grantee where necessary to prevent evasion or avoidance of the obligation under this Agreement
to pay the franchise fees. Gross Revenues shall not include (i) Bad Debt, provided, however, that
all or part of any such Bad Debt that is written off but subsequently collected shall be included in
Gross Revenues in the period collected; or (ii) any taxes on services furnished by the Grantee that
are imposed directly on any Subscriber or user by the State, County or other governmental unit
and that are collected by the Grantee on behalf of said governmental unit; or (iii) the Initial
Capital Contribution and monthly Capital Contributions as required by subsection 10.5 of this
Agreement. The franchise fees are not a tu~, and are therefore included in Gross Revenues.
"Headend" or "Hub" means any facility for signal reception and dissemination on the System,
including cables, antennas, wires, satellite dishes, monitors, switchers, modulators, processors
and other related equipment and facilities.
"Noncommercial" means those products and services that are not promoted or sold. This term
shall not be interpreted to prohibit an Access Channel operator or programmer from soliciting
and receiving financial support to produce and transmit Video Programming on an Access
Channel or from acknowledging a contribution, subject to applicable law,
"Person" means any natural person, sole proprietorship, partnership, joint venture, association,
limited liability entity or corporation, or any other form of entity or organization.
"Premium Service" means Video Programming or other programming service choices (such as
movie Channels) offered to Subscribers on a per-Channel basis.
"RiQht-of-Wav" or `Bi~hts-of-Wav" means land acquired or dedicated to the public or
hereafter ac4uired or dedicated to the public and maintained under public authority or by others
including, but not limited to, public streets or roads, highways, avenues, lanes, alleys, bridges,
sidewalks, easements, dedicated utility strips and similar public property or other property
dedicated far compatible uses now or hereafter held by the County within the Franchise Area
which shall entitle the Grantee to the use thereof for the purpose of installina, operating,
repairing and maintaining the Cable System.
"School" means any State-accredited K-12 public educational institution excluding home
schools.
"State" means the State of Colorado.
"Subscriber" or "Customer" means any Person who lawfully receives Cable Services provided
by Grantee by means of the System with Grantee's express permission.
(A) "Commercial Subscriber" means any Subscriber other than a Residential
Subscriber.
(B) "Residential Subscriber" means any Person who receives Cable Service
delivered to single units (as opposed to those on a bulk billing basis).
"Tier" means a category of Cable Services provided by the Grantee for which a separate periodic
rate is charged.
"Video Programming" means programming provided by, or generally considered comparable to
programming provided by, a television broadcast station or cable programmer.
SECTION 3. GRANT OF AGREEMENT
3.1 Grant
(A) The County hereby grants to Grantee a nonexclusive authorization to make
reasonable and lawful use of the Rights-of-Way within the Franchise Area to construct, operate,
maintain, reconstruct, repair and upgrade a System for the purpose of providing Cable Services,
subject to the terms and conditions set forth in this Agreement and applicable law. This
Agreement shall constitute a right to provide the Cable Services required by and to fulfill the
obligations set forth in this Agreement.
(B) The Grantee, through this Agreement, is granted the right to operate its System
using the County's Rights-of-Way within the Franchise Area in compliance with all construction
codes and regulations. The Grantee specifically agrees to comply with the provisions of
generally applicable County ordinances; provided that in the event of a conflict between the
provisions of ordinances and the Agreement, the express provisions of the Agreement shall
govern. Subject to federal and State preemption, the express provisions of this Agreement
constitute a valid and enforceable contract between the parties.
(C) This Agreement shall not be interpreted to prevent the County from imposing
other conditions, to the extent permitted by law, including additional compensation conditions
for use of the Rights-of-Way, should Grantee provide service other than Cable Service.
(D) Grantee promises and guarantees, as a condition of exercising the privileges
granted by this Agreement, that any Affiliate offering Cable Service in the Franchise Area, or
directly involved in the management or operation of the System in the Franchise Area, will
comply with the terms and conditions of this Agreement.
(E) No rights shall pass to Grantee by implication. Without limiting the foregoing, by
way of example and not limitation, this Agreement shall not include or be a substitute for:
(1) Any other authorization required for the privilege of transacting and
carrying on a business within the County that may be required by laws of the County.
(2) Any agreement or authorization required by the County for Rights-of-Way
users in connection with operations on or in Rights-of-Way or public property including, by way
of example and not limitation, street cut permits; or
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(3) Any agreements for occupying any other property of the County or private
entities to which access is not specifically granted by this Agreement including, without
limitation, agreements for placing devices on poles, in conduits or in or on other structures.
(F) This Agreement is intended to convey limited rights and interests only as to those
Rights-of-Ways in which the County has an actual interest. It is not a warranty of title or interest
in any Rights-of-Way; it does not provide the Grantee with any interest in any particular location
within the Rights-of-Way; and it does not confer rights other than as expressly provided in the
grant hereof.
(G) This Agreement is an express authorization to provide Cable Services only and
does not authorize or prohibit Grantee's provision of non-Cable Services, telecommunications
services or information services in the Franchise Area. This Agreement is not a bar to the
imposition of any lawful conditions on Grantee with respect to non-Cable Services,
telecommunications services or information services. This Agreement does not relieve Grantee
of any obligation it may have to obtain from the County an authorization to provide non-Cable
Services, telecommunications services or information services or relieve Grantee of its obligation
to comply with any such authorization(s) that may be lawfully required.
3.2 Use of Rights-of-Way
(A) Grantee may erect, install, construct, repair, replace, reconstruct and retain in, on,
over, under, upon, across, through, below and alona the Rights-of-Way within the Franchise
Area, such wires, cables (both coa~cial and fiber optic), conductors, ducts, conduits, vaults,
manholes, amplifiers, pedestals, attachments and other property and equipment as are necessary
and appurtenant to the operation of the System for the provision of Cable Services within the
Franchise Area.
(B) Grantee must install System facilities in a manner that minimizes interference
with the use of the Rights-of-Way by others including others that may be installing
communications facilities.
3.3 Duration
The term of this Agreement and all rights, privileges, obligations and restrictions pertaining
thereto shall be for seven (7) years, unless lawfully terminated sooner as hereinafter provided.
3.4 Effective Date
(A) The effective date of this Agreement shall be , 2009.
(B) The grant of this Agreement shall have no effect on the Grantee's duty under the
prior agreement or any ordinance in effect prior to the effective date of this Agreement to
indemnify or insure the County against acts and omissions occurring during the period that the
prior agreement was in effect, nor shall it have any affect upon liability to pay all franchise fees
(for any priar years) that were due and owed under a prior agreement
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3.5 Competitive Equity
(A) The Grantee acknowledges and agrees that the County reserves the right to grant one (1)
or more additional franchises or other similar lawful authorization to provide Cable Services
within the Franchise Area; provided, the County agrees that, within ninety (90) days of the
Grantee's request, it shall amend this Franchise to include any material terms or conditions that it
makes available to the new entrant, or provide relief from existing material terms or conditions,
so as to ensure that the regulatory and financial burdens on each entity are materially equivalent.
For the purposes of this Subsection 3.5(A) "material terms and conditions" include, but are not
limited to: Franchise Fees; insurance; System build-out requirements; security instruments;
Public, Education and Government access Channels and support; customer service standards;
required reports and related record keeping; and notice and opportunity to cure breaches. The
parties agree that this provision shall not require a word for word identical franchise or
authorization for a competitive entity so long as the regulatory and financial burdens on each
entity are materially equivalent. Video Programming services delivered via wireless, Direct
Broadcast Satellite, SMATV or any entity that does not use the public Rights-of-Way are
specifically exempted from the requirements of this Subsection.
(B) Notwithstanding any provision to the contrary if the Franchise is not modified as set
forth in Subsection 3.5 (A) above, then at any time prior to the commencement of the Grantee's
thirty-six (36) month renewal window provided by Section 626 of the Cable Act, that a non-
wireless facilities based entity, legally authorized by state or federal law, makes available for
purchase by Subscribers or Customers, Cable Services or multiple Channels of Video
Programming within the Franchise Area without a franchise or other similar lawful authorization
granted by the County, then the term of Grantee's Franchise shall, upon ninety (90) days written
notice from Grantee, be shortened so that the Franchise shall be deemed to expire on a date thirty
six (36) months from the first day of the month following the date of Grantee's notice. Grantee
shall immediately thereafter secure franchise renewal rights pursuant to Section 626 of the Cable
Act with no further notice to the County required. The County and Grantee shall then enter into
proceedings consistent with Section 626 regarding the renewal process with respect to this
Franchise. The County and Grantee shall have all rights and obligations provided under said
Section 626.
(C) Notwithstanding any provision to the contrary, should any non-wireless facilities based
entity provide Cable Service within the Franchise Area during the term of this Franchise without
a franchise granted by the City, then Grantee may assert, at Grantee's option, that this Franchise
is rendered "commercially impracticable," and invoke the modification procedures set forth in
Section 625 of the Cable Act.
3.6 Familiarity with Agreement
The Grantee acknowledges and wanants by acceptance of the rights, privileges and agreement
granted herein, that it has carefully read and fully comprehends the terms and conditions of this
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Agreement and is willing to and does accept all reasonable risks of the meaning of the
provisions, terms and conditions herein.
3.7 Effect of Acceptance
By accepting the Agreement, the Grantee: (1) acknowledges and accepts the County's legal right
to issue and enforce the Agreement; (2) accepts and agrees to comply with each and every
provision of this Agreement subject to applicable laws; and (3) agrees that the Agreement was
granted pursuant to processes and procedures consistent with applicable law, and that it will not
raise any claim to the contrary.
3.8 Police Powers
Grantee's rights hereunder are subject to the lawful police powers of the County to adopt and
enforce laws, ordinances, resolutions and regulations necessary to the safety, health and welfare
of the public, and Grantee agrees to comply with all generally applicable laws, ordinances,
resolutions and regulations lawfully enacted.
SECTION 4. FRANCHISE FEES AND FINANCIAL CONTROLS
4.1 Franchise Fees
As compensation for the use of the County's Rights-of-Way, Grantee shall pay as a franchise fee
to the County, throughout the duration of this Agreement, an amount equal to five percent (5%)
of Grantee's Gross Revenues. Accrual of such franchise fees using the Gross Revenue definition
provided herein shall commence within sixty (60) days after the effective date of this Agreement.
During such sixty (60) day period, Grantee shall continue to accrue and pay franchise fees based
upon the Agreement in effect with the County prior to this Agreement.
4.2 Payments
Grantee's franchise fee payments to the County shall be computed quarterly for the preceding
calendar quarter ending March 31, June 30, September 30 and December 31. Each quarterly
payment shall be due and payable no later than forty-five (45) days after said dates.
4.3 Acceptance of Payment
No acceptance of any payment shall be construed as an accord by the County that the amount
paid is, in fact, the correct amount, nor shall any acceptance of payments be construed as a
release of any claim the County may have for further or additional sums payable or for the
performance of any other obligation of Grantee.
4.4 Franchise Fee Reports
Each payment shall be accompanied by a written report to the County verified by an authorized
representative of Grantee, containing an accurate statement in summarized form, as well as in
detail, of Grantee's Gross Revenues and the computation of the payment amount. Upon written
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request, Grantee shall, no later than thirty (30 days after the end of each calendar year, furnish to
the County a statement of Gross Revenues and all payments, deductions and computations for the
year just ended.
4.5 Audits
On an annual basis, upon thirty (30) days prior written notice, the County shall have the right to
conduct an independent audit of Grantee's records reasonably related to the enforcement of this
Agreement and to calculate any amounts determined to be payable under this Agreement.
Provided Grantee cooperates in making all relevant records available to County's representative
upon reasonable advance writTen request, the County will in good faith attempt to complete each
audit within six (6) months, and the audit period shall not be any greater than the previous three
(3) years. Any undisputed amounts due to the County as a result of the audit shall be paid within
thirty (30) days following written notice to the Grantee by the County, which notice shall include
a copy of the audit findings. If an underpayment is discovered as the result of an audit, Grantee
shall pay, in addition to the amount due, interest at the prime rate as listed in the Wall Street
Journal on the date the payment was due calculated from the date the underpayment was
originally due until the date the Grantee sends the payment. If the audit shows that franchise fees
have been underpaid by ten percent (10%) or more in a calendar year, Grantee shall pay the cost
of the audit up to a maximum of $ I0,000.
4.6 Financial Records
Grantee agrees to meet with a representative of the County upon request to review Grantee's
methodology of record-keeping, financial reporting, the computing of franchise fee obligations,
the understanding of which the County deems necessary for reviewing reports and records that
are relevant to the enforcement of this Agreement.
4.7 Interest on Late Payments
In the event any payment is not received within forty five (45) days from the end of the calendar
quarter, Grantee shall pay, in addition to the payment or sum due, interest on the amount due at
the prime rate as listed in the Wall Street Journal calculated from the date the payment was due
until the date the Grantor receives the payment.
4.8 Additional Commitments Not Franchise Fees
No term or condition in this Agreement shall in any way modify or affect Grantee's obligation to
pay franchise fees. Although the total sum of franchise fee payments and additional
commitments set forth elsewhere in this Agreement may total more than five percent (5%) of
Grantee's Gross Revenues in any 12-month period, Grantee agrees that the additional
commitments are excluded from franchise fees and are not to be offset or credited against any
franchise fee payments due to the County, nor do they represent an increase in franchise fees to
be passed through to Subscribers pursuant to federal law.
4.9 Payment on Termination
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ff this Agreement terminates for any reason, the Grantee shall file with the County within thirty
(30) calendar days of the date of the termination, a financial statement, certified by an
independent certified public accountant, showing the Gross Revenues received by the Grantee
since the end of the previous fiscal year. Within thirty (30) days of the filing of the certified
statement with the County, Grantee shall pay any unpaid amounts as indicated. If the Grantee
fails to satisfy its remaining financial obligations as required in this Agreement, the County may
do so by utilizing the funds available in security provided by the Grantee.
4.10 Bundling
The County acknowledges that, during the term of this Agreement, Grantee may offer to its
Subscribers a bundled or combined package of services consisting of Cable Services and non-
Cable Services. The Grantee may not unfairly or unlawfully allocate prices for bundled services
for the purpose of evading payment of franchise fees to the County. If a dispute arises between
the parties regarding this matter, the County and Grantee will meet within ten (10) days of such
notice to the other and discuss such matters in good faith in an attempt to reach a reasonable
compromise thereof.
4.11 Tax Liability
The franchise fees shall be in addition to any and all ta~ces or other levies or assessments which
are now or hereafter required to be paid by businesses in general by any law of the County, the
State or the United States including, without limitation, sales, use, utility and other taYes,
business license fees or other payments. Payment of the franchise fees under this Agreement
shall not exempt Grantee from the payment of any other generally applicable license fee, permit
fee, ta~ or charge on the business, occupation, property or income of Grantee that may be
lawfully imposed by the County, State or the United States.
SECTION 5. ADMINISTRATION AND REGULATION
5.1 Authority
The County shall be vested with the power and right to administer and enforce the requirements
of this Agreement and the regulations and requirements of applicable law in the public interest,
including the Cable Act., or to delegate that power and right of administration, or any part
thereof, to the extent authorized under federal, State and local law, to any agent in the sole
discretion of the County provided written notice thereof is given to the Grantee. Grantee shall
have the right to appeal to the County Board any adverse determination made by the County
delegate.
5.2 Rates and Charges
All of Grantee's rates and charges related to or regarding Cable Services shall be subject to
regulation by the County (if the County so elects to regulate) to the full extent authorized by
applicable federal, State and local laws.
5.3 No Rate Discrimination
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(A) All of Grantee's rates and charges shall be published (in the form of a publicly-
available rate card), and shall be non-discriminatory as to all Persons of similar classes, under
similar circumstances and conditions. Nothing herein shall be construed to prohibit:
(1) the temporary reduction or waiving of rates or charges in conjunction with
promotional campaigns; or
(2) the offering of reasonable discounts to similarly situated Persons.
(B) The Grantee's late fee and disconnection policies and practices shall be non-
discriminatory, and such policies and practices, and any fees imposed pursuant to this subsection,
shall apply equally in all parts of the Franchise Area without regard to the neighborhood or
income level of the Subscribers.
5.4 Filing of Rates and Charges
(A) Upon written request, Grantee shall provide the County a complete schedule of
applicable rates and charges for Cable Services provided under this Agreement.
(B) On an annual basis, Grantee shall upon written request provide a complete
schedule of current rates and charges to lease a Leased Access Channel. The schedule shall
include a description of the price, terms and conditions established by Grantee for Leased Access
Channels.
5.5 Performance Evaluation
(A) Evaluation sessions may be held by the County during the term of this Agreement
within thirty (30) days of the County's written request to Grantee, but no more often than
annually.
(B) All evaluation sessions shall be open to the public and announced at least one
week in advance in a newspaper of general circulation in the Franchise Area.
(C) Topics that may be discussed at any evaluation session may include, but are not
limited to, Cable Service rates, liquidated damages, free or discounted Cable Services,
application of new technologies, System performance, Cable Services provided, programming
offered, Customer complaints, privacy, amendments to this Agreement, judicial and FCC rulings,
line extension policies, and the County's or Grantee's rules; provided that nothing in this
subsection shall be construed as requiring the renegotiation of this Agreement or any provision
hereof.
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SECTION 6. FINANCIAL AND INSURANCE REQUIREMENTS
6.1 Indemnification
(A} General Indemnification. Grantee shall indemnify, defend and hold the County,
its elected of~cials, officers, boards, commissions, agents and employees, harmless from any
action or claim for injuty, damage, loss, liability, cost or expense, including court and appeal
costs and attorneys' fees and expenses, arising from any casualty or accident to Person or
property, including, without limitation, defamation and all other damages in any way arising out
of, or by reason of, any construction, excavation, operation, maintenance, reconstruction or any
other act done under this Agreement, by or for Grantee, its agents or its employees, or by reason
of any neglect or omission of Grantee, its agents or its employees. The County's fees and
expenses shall include the reasonable value of any services rendered by the County Attorney's
office or any other employees of the County or its agents. Grantee shaII consult and cooperate
with the County while conducting its defense of the County.
(B) Dutv of Defense. The fact that Grantee carries out any activities under this
Agreement through independent contractors shall not constitute an avoidance of or defense to
Grantee's duty of defense and indemnification under this subsection.
(C) Dutv to Give Notice and Tender Defense. The County shal] give the Grantee
timely written notice of any claim or the commencement of any action, suit or other proceeding
covered by the indemnity in this Agreement. In the event any such claim arises, the County or
other indemnified party shall tender the defense thereof to the Grantee and the Grantee shall have
the obligation and duty to defend, settle or compromise any claims arising thereunder, and the
County shall cooperate fully therein; provided, however, no settlement shall be made on behalf of
the County without the County's written consent.
(D) Se~arate Reoresentation. If separate representation to fully protect the interests of
both parties is necessary, such as a conflict of interest between the County and the counsel
selected by Grantee to represent the County, another attorney shall be selected.
6.2 Insurance Requirements
(A) General l2equirement. Grantee shall at its own expense purchase and maintain
the insurance required herein with companies duly licensed to do business in the State of
Colorado, possessing a current A.M. Best, Inc. Rating of "A-" or better.
(B) Minimum Insurance Limits. Grantee must maintain during the Agreement and for
a period of twelve (12) months after expiration, termination ar nonrenewal thereof, insurance in
effect in accordance with the minimum insurance limits herein set forth by the County. The
Grantee shall provide a certificate of insurance for the following minimum insurance limits:
(1) Commercial General Liability: Three million dollars ($3,000,000)
aggregate limit per occurrence for bodily injury, personal injury and property damage and three
million dollars ($3,000,000) products and completed operations.
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(2) Automobile Liability: One million dollars ($1,000,000) combined single
limit per accident for bodily injury and property damage.
requirements.
(3) Employer's Liability: Five hundred thousand dollars ($500,000).
(4) Workers Compensation Insurance in accordance with State law
(5) Umbrella or Excess Liability Insurance: Five million dollars ($5,000,000}.
Grantee shall be responsible for jadgments, settlements, damages, costs,
attorneys' fees and expenses that exceed the limits of Grantee's insurance coverage.
(C) Endorsements.
(1) All policies shall contain, or shall be endorsed so that:
(a) The County shall be designated as an additional insured.
(b) The Grantee's insurance coverage shall be primary insurance with
respect to the County, its elected officials, officers, boards, commissions, agents and employees.
Any insurance or self-insurance maintained by the County, its elected officials, officers, boards,
commissions, agents and employees shall be in excess of the Grantee's insurance and shall not
contribute to it.
(c) Grantee's insurance shall apply separately to each insured against
whom a claim is made or lawsuit is brought, except with respect to the limits of the insurer's
liability.
(2) The insurance shall not be cancelled or materially altered so as to be out of
compliance with the requirements of this subsection without thirty (30) days written notice first
being given to the County. If the insurance is cancelled or materially altered so as to be out of
compliance with the requirements of this subsection, Grantee shall provide a replacement policy.
Grantee agrees to maintain continuous uninterrupted insurance coverage, in the amounts
required, for the duration of this Agreement and thereafter as applicable.
(D) Verification of CoveraQe. The Grantee shall furnish the County with certificates
of insurance naming County as an additional insured. The certificates for each insurance policy
are to be signed by a person authorized by that insurer to bind coverage on its behalf. The
certificates for each insurance policy are to be on standard forms or such forms as are consistent
with standard industry practices, and are to be received by the County within thirty (30) days of
acceptance of this Agreement by Grantee. The Grantee hereby warrants that its insurance
policies satisfy the requirements of this Agreement.
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6.3 Self-Insured Retentions
If Grantee changes its policy to include a self-insured retention, the Grantee shall give written
notice of such change to the County. The County's approval will be given if the self-insured
retention is consistent with standard industry practices. Any self-insured retention of the policies
shall not in any way limit Grantee's liability to the County.
6.4 Bond
(A) Grantee shall provide a Performance Bond in the amount of Ten thousand dollars
($10,000) to ensure the faithful performance of its responsibilities under this Agreement and
applicable law including, by way of example and not limitation, its obligation to relocate and
remove its facilities and to restore County Rights-of-Way and other property. Grantee may be
required to obtain additional bonds in accordance with the County's ordinary practices. The
bond shall be in a form reasonably acceptable to the County's Risk Manager. Grantee shall pay
all premiums or costs associated with maintaining the bond, and shall keep the same in full force
and effect at all times.
(B) The bond shall not be cancelled or materially altered so as to be out of compliance
with the requirements of this subsection without thirty (30) days written notice first being given
to the County. If the bond is cancelled or materially altered so as to be out of compliance with
the requirements of this subsection, Grantee shall provide a replacement bond. Grantee agrees to
maintain a continuous uninterrupted bond in the amounts required for the duration of this
Agreement or thereafter as specified in this Agreement.
SECTION 7. CUSTOMER SERVICE
7.1 Customer Service Standards
Customer Service Standards may be adopted separately by ordinance or resolution by the County.
In any event, Grantee shall comply with the customer service standards as outlined by federal law
(namely 47 CFR Section 76.309) and as those may be amended from time to time. The County
agrees to provide written notice to Grantee if it intends to enact customer service standards more
stringent than those contained in 47 CFR Section 76309.
To the extent Grantee makes available a payment center so that Customers may have an opportunity
to pick up and retum equipment, pay bills and ask questions of representatives of Grantee, if
Grantee elects to close such payment center, it shall provide thirty (30) days advance notice of such
closure to the County.
7.2 Subscriber Privacy
Grantee shall comply with privacy rights of Subscribers in accordance with applicable federal
and State laws.
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SECTION 8. REPORTS AND RECORDS
8.1 Open Records
The County shall have access to, and the right to inspect, any books and records of Grantee and
its Affiliates that are reasonably related to the enforcement of the provisions of this Agreement.
Such review shall be at the Grantee's business office during normal business hours and on a non-
disruptive basis. Such notice shall specifically reference the Section or subsection of the
Agreement that is under review so that the Grantee may organize the necessary books and
records for easy access by the County. Grantee shall not deny the County access to any of
Grantee's records on the basis that Grantee's records are under the control of any Affiliate. The
County may, in writing, request copies of any such records or books, and Grantee shall provide
such copies within thirty (30) days of the receipt of such request except for those documents
deemed proprietary and confidential. One copy of all reports and records required under this or
any other subsection shall be furnished to the County at the sole expense of Grantee. If the
requested books and recards are too voluminous, or for security reasons cannot be copied or
removed, then Grantee may request, in writing within thirty (30) days of receipt of such request,
that the County inspect them at Grantee's office. If any books or records of Grantee are not kept
in a local office and not made available in copies to the County upon written request as set forth
above, and if the County determines that an examination of such records is necessary for the
enforcement of this Agreement, then all reasonable County travel expenses incurred in making
such examination shall be paid by Grantee.
8.2 Confidentiality
(A) Notwithstanding anything to the contrary set forth in this Agreement, the Grantee
shall not be required to disclose information which it reasonably deems to be proprietary or
confidential in nature. Grantee shall not be required to provide Customer information in
violation of Section 631 of the Cable Act or any other applicable federal or State privacy law.
For purposes of this subsection, the terms "proprietary or confidential" include, but are not
limited to, information relating to the Cable System design, Customer lists, marketing plans or
financial information unrelated to the calculation of franchise fees. Grantee may make
proprietary or confidential information available for inspection but not copying or removal by the
County's representative.
(B) Grantee shall be responsible for clearly and conspicuously identifying the books,
records and maps which are confidential or proprietary, and shall provide a brief written
explanation as to why such information is confidential and how it may be treated as such under
State or federal law. If the County receives a demand from any Person for disclosure of any
information designated by Grantee as confidential, the County shall, so far as consistent wi[h
applicable law, advise Grantee and provide Grantee with a copy of any written request by the
party demanding access to such information within a reasonable time, but before the proposed
release. Unless otherwise ordered by a court or agency of competent jurisdiction, the County
agrees that, to the extent permitted by State or federal law, it shall deny access to any of
Grantee's books or records marked confidential or proprietary as set forth above.
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8.3 Records Required
Grantee shall provide to the County upon written request:
(A) A full and complete set of "route" maps, showing the general location of all
System equipment installed or in use in the Rights-of-Way, that are generated in Grantee's
normal course of business;
(B) A copy of alI FCC filings on behalf of Grantee that relate to the operation of the
System in the Franchise Area; and
(C) A list of Grantee's Cable Services, rates and Channel line-up.
8.4 Copies of Federal and State Reports
Upon reasonable written request, Grantee shall submit to the County copies of any pleading,
applications, notifications, communications and documents of any kind submitted by Grantee or
its Affiliates to any federal, State or local courts, regulatory agencies and other government
bodies if such documents directly relate to the operation of Gran[ee's System within the
Franchise Area. Grantee shall submit such documents to the County no later than thirty (30) days
after receipt of the County's request.
S.5 Complaint File and Reports
(A) Grantee shall keep an accurate and comprehensive compilation of any and all
Customer complaints escalaTed to the County and provided to Grantee, and Grantee's actions in
response to those complaints, in a manner consistent with the privacy rights of Subscribers.
Upon written request of at least thirty (30) days written notice, this file shall be made available to
the County during normal business hours.
(B) Also, upon written request, but no more often than onca annually, Grantee shall
provide an executive summary report to the County within thirty (30) days of the County's
written request that shall include the following information:
(1} Nature and type of Customer complaints escalated to the County and
provided to Grantee;
(2) A summary of unplanned service interruptions or Cable System outages
lasting longer than four hours;
(3) Phone activity report of complaints escalated to the County and provided
to Grantee;
(4) Video Programming changes (additions/deletions);
(S) Such other information as reasonably requested by the County and related
to the enforcement of this Franchise.
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8.6 False Statements
Any intentional false or misleading statement or representation in any report required by this
Agreement shall be a material breach of this Agreement and may subject Grantee to all remedies,
legal or equitable, that are available to the County under this Agreement or otherwise.
SECTION 9. PROGRAMMING
9.1 Broad Programming Categories
Grantee shall provide at least the following broad categories of programming to the extent such
categories are reasonably available:
(A) Educational programming;
(B) News, weather and information;
(C) Sports;
(D) General entertainment including movies;
(E) Children, family oriented;
(F) Arts, culture and performing arts;
(G) Foreign Language programming;
(H) Science/documentary; and
(n PEG Access programming.
9.2 Deletion of Broad Programming Categories
Grantee shall not delete or so limit as to effectively delete any broad category of programming
within its control without prior written notice to the County.
9.3 Obscenity
Grantee shall comply with applicable laws related to obscenity.
9.4 Parental Control Device
Upon request by any Subscriber, Grantee shall make available a parental control or lockout
device, traps or filters to enable a Subscriber to prohibit viewing of a particular Cable Service
during periods selected by the Subscriber. Grantee shall inform its Subscribers of the availability
of the lockout device at the time of their initial subscription and upon request thereafter.
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9.5 Complimentary Cable Service
(A) The Grantee shall provide without charge, a Standard Installation and one outlet
of Basic Service and Expanded Basic Service (and any necessary converter) to County buildings
now existing or hereafter constructed within the Franchise Area, provided that the buildings are
either owned or leased and occupied by the County, fire station(s), sheriff station(s), libraries or
School(s), or the County's Designated Access Provider and provided further that they are already
served by the Grantee's Cable System or are within one hundred twenty five (125) aerial feet or
sixty (60) underground feet (a "Standard Installation") of its Cable System. A Standard
Installation does not include exceptional circumstances such as those involving railroad crossings
or going under rivers.
(B) The Cable Service provided shall only be used for lawful purposes, shall not be
used for commercial purposes or to entertain public or private groups and shall not be located in
public areas (except for those outside of the Board of County Commissioners' Meeting Room
and displaying content related to the Board of County Commissioners' meetings).
Complimentary cable services shall not be used in areas where the County would narmally enter
into a commercial contract, by way of example and not limited to: recreation center work out
facilities and community housing. The County shall take reasonable precautions to prevent any
use of the Grantee's Cable System in any manner that results in the inappropriate use thereof.
Grantee shall have the right to discontinue complimentary cable se:vice hookups that do not
comply with this Franchise provided that 30 days written notice is first given by Grantee to the
County and if there is continued noncompliance with Subsection 9.5(B), then Grantee may
discontinue complimentary cable service hookups that do not comply with this Franchise.
(C) The Grantee shall not be required to provide a free outlet to the above buildings
where a non-Standard Installation is required, unless the County or building owner/occupant
agrees to pay the incremental cost of any necessary Cable System extension and non-Standard
Installation.
(D) If additional outlets of complimentary Cable Service are provided to buildings
beyond those required herein, the building owner/occupant shall pay the usual installation fees
and recurring charges associated therewith. It is agreed, however, that for those existing
complimentary accounts as of the date hereof there shall not be any recurring charges except for
the converter boxes or any additional services associated therewith.
(E) Grantee further agrees that to the extent that any County facilities are located
within municipal boundaries, they shall also be provided with complimentary Cable Service in
accordance with the terms contained in this Subsection 9.5.
(F) The monetary value of complimentary Standard Installations, converters and
Cable Service provided by the Grantee pursuant to this subsection shall not be offset against any
franchise fees payable to the County.
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9.6 Leased Access Channels
Grantee shall offer Leased Access Channel capacity on such terms and conditions and rates as
may be negotiated with each lessee subject to the requirements of Section 612 of the Cable Act
and the rules and regulations of the FCC.
9.7 Continuity of Service
It shall be the right of all Subscribers to continue to receive Cable Service from Grantee insofar
as their financial and other obligations to Grantee are satisfied. Grantee shall use its best efforts
to ensure that all of its Subscribers receive continuous, uninterrupted Cable Service.
SECTION 10. PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS
10.1 Access
(A) Grantee shall continue to make available at no additional charge, the one (1)
Access Channel programmed by Pitkin County that is currently carried on the Cable System.
Additionally, Grantee shall continue to make available two (2) Access Channels that shall be
shared by the City of Aspen, the Town of Snowmass Village and Pitkin County and which are
currently carried on the Cable System so long as they are programmed by their respective
entities.
(B) In the event Grantee makes any change in signal delivery technology which
directly affects the signal quality or transmission of any Access Channel programming or
services, the Grantee shall, at its own expense, take necessary technical steps, acquire new
equipment and, in addition, provide the necessary assistance so that the Access facilities and
equipment may be used as intended by the Access providers, including, among other things, so
that live and taped programming can be cablecast with as good or better signal quality than
existed prior to such change.
10.2 Triggers for an Additional Access Channel
The County may require Grantee to make available no more than one (1) additional activated
downstream Access Channel when all (excluding the Channel which carries airport
programming) of the existing Access Channels required by subsection 10.1 are used for locally
scheduled programming (but excluding character generated programming), during fifty percent
(50%) of the hours between 10:00 A.M. and 10:00 P.M., Monday through Friday during any
consecutive ten (10) week period. It is understood and agreed that as between Aspen, Pitkin
County and the Town of Snowmass Village, there may be only I additional activated
downstream Access Channel during the term of this Franchise. Upon a showing that this
threshold has been met and after a public hearing and opportunity for citizen input, Grantee shall
make available, within four (4) months of the County's written request, one (1) additional Access
Channel for Access programming purposes. Locally scheduled programming under this
Subsection means onty non-commercial, not for profit, non-competitive, government,
educational or public access programming that is created or produced within Asgen, the Town of
Snowmass Village or Pitkin County. Such programming shall not be considered as counting
20
toward the calculation in this Subsection 10.2 after three (3) cablecasts (initial, first repeat and
second repeat). The County acknowledges that some other programming services may need to be
moved or deleted to accommodate such additional Access Channel.
10.3 Management and Control of Access Channels
The County may authorize Designated Access Providers to control, operate and manage the use
of any and all Access facilities including, without limitation, the programming of Access
Channels. The County or its designee may formulate rules for the operation of the Access
Channels, consistent with this Agreement. Nothing herein shall prohibit the County from
authorizing itself to be a Designated Access Provider or from assigning several Designated
Access Providers with similar types of programming to share Access Channel space.
10.4 Access Channel Numbers
Grantee will use commercially reasonable efforts to minimize the movement of Access Channel
numbers. Grantee shall provide to the County a minimum of sixty (60) days notice prior to any
relocation of an Access Channel, unless the change is required by federal law or for a
demonstrable technical reason, in which case Grantee shall give the County at least thirty (30)
days written notice. In addition, Grantee shall provide the County with ninety (90) thirty second
promotional spots on the System during a thirty (30) day period prior to the date of the change in
the location of an Access ChanneL The County or its designee shall have sole responsibility to
produce and deliver the spots to Grantee on a timely basis and in a cablecast-ready state. Such
spots shall promote the Access Channel and the Channel relocation only for the purpose of
notifying Subscribers of the change in Channel designation, and shall not include any mention of
any third party or other sponsors. Placement of the spots shall be based on available inventory.
All spots are subject to Grantee's approval, such approval not to be unreasonably withheld or
delayed. If Designated Access Providers can demonstrate significant economic impact due to
rebranding, Grantee and County shall meet and attempt in good faith to address Grantee paying
for some of the rebranding costs.
10.5 Access Capital Costs
(A) Within thirty (30) days of the effective date of this Agreement, Grantee shall
provide a one time contribution of $9,000 to the County (the "Initial Capital Contribution")
which the County and/or its Designated Access Providers (at County's discretion) may use only
for capital purposes (studios, facilities, equipment, equipment used for video streaming
government meetings, etc.) for PEG Access. Alternatively, the County may elect to defer
receiving the Initial Capital Contribution but cannot request the Initial Capital Contribution if
less than one year remains on the Term of the Agreement. If it does make this election to defer,
the County shall give sixty (60) days advance written notice to Grantee once it elects to receive
the Initial Capital Contribution and after a public hearing. Thereafter, Grantee shall pay the
Initial Capital Contribution to the County on or before the lapsing of such sixty (60) day
timeframe. The County understands that, pursuant to federal law, Grantee intends to collect the
Initial Capital Contributions from Residential Subscribers as a separate line item on Subscribers'
bills in addition to the price for Cable Service.
21
(B) When the Initial Capital Contribution specified in subsection (A) is fully
recovered by Grantee, the Grantee shall provide to the County up to $0.50 per month per
Residential Subscriber for Access capital (the "Quarterly Capital Contribution"). Grantee shall
not be responsible for paying the Quarterly Capital Contribution with respect to gratis or Bad
Debt accounts.
(C) Each Quarterly Capital Contribution payment shall be due and payable no later
than forty-five (45) days following the end of the quarter from when the Quarterly Capital
Contribution takes effect. The County shall have discretion to allocate the Initial Capital
Contribution and Quarterly Capital Contribution in accordance with applicable law, provided that
the County submits a summary of capital expenditures from the Initial Capital Contribution and
Quarterly Capital Contribution to Grantee within sixty (60) days of the end of each calendar year.
The County may adjust the amount of the Quarterly Capital Contribution (not to exceed $.50 per
Residential Subscriber per month) on an annual basis, or choose to waive collection of the
Quarterly Capital Contribution, provided that Grantee is given ninety (90) days advance written
notice.
(D) The County and Grantee agree that recovery of the Initial Capital Contribution
and subsequent Quarterly Capital Contributions shall be referred to on Subscribers' bills as a
"PEG Fee", or language substantially similar thereto.
(E) To the extent the County has made or makes Access capital investments using
County funds prior to receiving necessary Initial Capital Contribution and Monthly Capital
Contribution funds, the County is entitled to apply the Initial Capital Contribution and Quarterly
Capital Contribution payments from Grantee toward such County capital investments. It is
further agreed that the Initial Capital Contribution and Quarterly Capital Contributions must be
applied toward or used for Access Programming equipment and facilities in the County, Aspen
and the Town of Snowmass Village.
(F) The Initial Capital Contribution and Quarterly Capital Contribution payments are
not an advance against any franchise fee payment, and there shall not be any offset or credit
against any franchise fee payment.
(G) Grantee agrees that at the end of the initial seven (7)_ year term and if the
Agreement is extended for an additional seven years, Grantee shall provide an additional capital
contribution matching the Initial Capital Contribution and will continue collecting and remitting
the Quarterly Capital Contribution to the County so long as the County elects to receive same.
Grantee shall recoup the additional initial capital contribution under the same recovery terms and
conditions as the Initial Capital Contribution as set forth above.
10.6 Technical Quality
The Grantee shall maintain all Access Channels consistent with the quality of Grantee's other
Channels on the same tier of service. The Grantee shall provide routine maintenance and repair
and replace, if necessary, any of Grantee's equipment required to carry a quality signal from the
Access facilities to Subscribers. Should the County or its Designated Access Provider elect to
22
upgrade any of the equipment at its facilities, the County or its Designated Access Provider shall
be responsible for upgrading the equipment at its costs.
10.7 Return Lines
Grantee shall, at its expense, maintain the existing operating retum lines sufficient to enable
character generated, prerecorded and live cablecasts from Pitkin County building located at
Courthouse Plaza, 530 East Main Street, Aspen, CO 816ll; Aspen City Hall located at 130
South Galena, Aspen, CO 8161 l; Pitkin County Airport, located at 233 East Airport Road, Suite
A, Aspen, CO 81612, Colorado Mountain College located at 0255 Sage Way, Aspen, CO, RF'I'A
located at 0051 Service Center Road, Aspen, CO, and the GrassRoots TV studio located at 110
East Hallam Street in Aspen to the Headend to enable the distribution of Access programming to
Subscribers. Grantee shall not be required to maintain return lines to the GrassRoots TV studio
if the County ceases to use GrassRoots as a Designated Access Provider. Upon written request
of the County, Grantee shall construct and maintain additional fiber optic return lines, at
County's expense, from other locations within the Franchise Area which deliver Access
programming to Subscribers.
SECTION 11. GENERAL RIGHT-OF-WAY USE AND CONSTRUCTION
11.1 Construction
(A) Subject to applicable laws and this Agreement, Grantee shall perform all
maintenance, construction, repair and upgrades necessary for the operation of its System in the
Rights-of-Way. AIl work regarding Grantee's System shall, regardless of who performs the
work, be and remain Grantee's responsibility. Grantee shall apply for, and obtain, all permits
necessary for construction or installation of any facilities and for excavating and laying any
facilities within the Rights-of-Way. Grantee shall pay all applicable fees upon issuance of the
requisite permits by the County to Grantee.
(B) As a condition of any permit so issued, the County may impose such conditions
and regulations as are necessary for the purpose of protecting any structures in such Rights-of-
Way, proper restoration of such Rights-of-Way and structures, protection of the public and the
continuity of pedestrian or vehicular traffic.
(C) In the event that emergency repairs are necessary, Grantee shall immediately
notify the County of the need for such repairs. Grantee may initiate such emergency repairs and
shall apply for appropriate permits within forty-eight (48) hours after discovery of the emergency,
or as soon as reasonably practical.
11,2 One Call Noti~cation
Prior to doing any work in the Rights-of-Way, Grantee shall follow established procedures,
including contacting the Utility Notification Center of Colorado and comply with all applicable
State statutes. Grantee shall also comply with generally applicable ordinances and pernutting
requirements before digging in the Rights-of-Way.
'' 3
<
ll.3 Restoration of Rights-of-Way
(A) Whenever Grantee disturbs the surface of any Rights-of-Way for any purpose,
Grantee shall promptly restore the Rights-of-Way to a condition reasonably comparable to the
condition of the Rights-of-Way immediately prior to such disturbance, normal wear and tear
excepted. When any opening is made by Grantee in a hard surface pavement in any Rights-of-
Way, Grantee shall promptly refill the opening and restore the surface as required by its permit.
(B) ff the Grantee fails to promptly restore the Rights-of-Way, the County may, after
providing reasonable notice to Grantee, refill or repave any opening made by Grantee in the
Rights-of-Way, and the reasonable expense thereof shall be paid by Grantee. The County may,
after providing reasonable notice to Grantee, repair any work done by Grantee that, in the
determination of the County, does not conform to applicable County specifications. The
reasonable cost thereof, including the costs of inspection and supervision, shall be paid by
Grantee. All excavations made by Grantee in Rights-of-Way shall be properly safeguarded for
the prevention of accidents, All of Grantee's work under this Agreement shall be done in
compliance with all rules, regulations and generally applicable ordinances of the County.
11.4 Maintenance
(A) Grantee's System shall be constructed and maintained in such a manner as not to
interfere with sewers, water pipes or any other property of the County, or with any other pipes,
wires, conduits, pedestals, structures or other facilities that may have been laid in Rights-of-Way
by, or under, the County's authority.
(B) Grantee shall provide and use any equipment necessary to control and carry
Grantee's signals so as to prevent damage to the County's property or property belonging to any
Person. Grantee, at its own expense, shall repair, renew, change and improve its facilities and
equipment to keep them in good repair and a safe and presentable condition.
(C) The Grantee's transmission and distribution System, wires and appurtenances
shall be located, erected and maintained so as not to endanger or interfere with the lives of
Persons, or to unnecessarily hinder or obstruct the free use of Rights-of-Way or other public
property.
(D) Grantee shall give reasonable notice to private property owners of construction
work in adjacent Rights-of-Way.
11.5 Reservation of Rights-of-Way
Nothing in this Agreement shall prevent the County or public utilities from constructing any
public work or improvement. All such work shail be done insofar as practicable so as not to
obstruct, injure or prevent the use and operation of Grantee's Cable System.
(A) Movement of Svstem For and By the Countv. The County shall have the right to
require Grantee to relocate, remove, replace, modify or disconnect Grantee's facilities and
equipment located in the Rights-of-Way or on other property of the County in the event of an
24
emergency or when necessary to protect or further the health, safety or welfare of the general
public, and such work shall be performed a[ Grantee's expense consistent with applicable law. In
conjunction with the foregoing, Grantee shall be treated in a similar manner with respect to other
providers with overhead utilities. Except during an emergency, the County shall provide
reasonable notice to Grantee, not to be less than ten (10) business days, and allow Grantee the
opportunity to perform such work.
If the Grantee fails to complete this work within the time prescribed and to the
County's reasonable satisfaction, the County may cause such work to be done and bill the cost of
the work to the Grantee. Grantee shall remit payment to the County within thirty (30) days of
receipt of an itemized list of those costs.
If the County requires Grantee to relocate its facilities located within the Rights-
of-Way, the County shall make a reasonable effort to provide Grantee with an alternate location
in the Rights-of-Way.
(B) Movement for Other Permittees. At the request of any Person holding a valid
permit and upon reasonable advance notice, Grantee shall temporarily raise, lower or remove its
wires as necessary to allow the moving of a building, vehicle, equipment or other item. The cost
of such temporary change must be paid by the permit hoider, and Grantee may require the
estimated payment in advance.
11.6 Rights-of-Way Vacation
If any Rights-of-Way or portion thereof used by Grantee is vacated by the County during the term
of this Agreement, unless the County specifically reserves to Grantee the right to continue the use
of vacated Rights-of-Way, Grantee shall, without delay or expense to the County, remove its
facilities from such Rights-of-Way and restore, repair or reconstruct the Rights-of-Way where
such removal has occurred. In the event of failure, neglect or refusal of Grantee to restore, repair
or reconstruct such Rights-of-Way after thirty (30) days written notice from the County, the
County may do such work or cause it to be done, and the reasonable cost thereof shall be paid by
Grantee within thirty (30) days of receipt of an invoice and documentation.
11.7 Undergrounding of Cable
(A) Where electric and tetephone utility wiring or other underground wiring is
installed at the time of System construction or when such overhead wiring is subsequently placed
underground, all System lines, wiring and equipment shall also be placed underground by
Grantee concurrently or within a reasonable time thereafter at no expense to the County, subject
to applicable law including, but not limited to CRS 29-8-101 et seq. In areas where either
electric or telephone utility wiring is aerial, the Grantee may install aerial cable, except when a
property owner or resident requests underground installation and agrees to bear the additional
cost in excess of aerial installation. If funds exist, are set aside for such purpose, or provided by
a third party, Grantee shall be entitled to seek reimbursement for its share of funds to offset the
cost of placing its facilities underground. Nothing contained in this subsection shall require
Grantee to construct, operate and maintain underground any ground-mounted appurtenances
including, but not limited to, pedestals.
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(B) The Grantee shall utilize existing conduit wherever possible.
(C) The County shall not be required to obtain easements for the Grantee.
(D) The Grantee shall participate with other providers in joint trench projects to
relocate its overhead facilities underground and remove its overhead facilities in areas where
utilities are being converted to underground facilities.
11.8 Construction and Use of Poles
Grantee shall use existing poles when the installation of facilities above-ground is permitted. In
the event Grantee cannot obtain the necessary poles pursuant to a pole attachment agreement, and
only in such event, then, subject to the County's prior written consent, it shali be Iawful for
Grantee to make all needed excavations in the streets for the purpose of placing, erecting,
maintaining, repairing and removing poles needed for the maintenance or extension of Grantee's
System. The County shall have the right to require Grantee to change the location of any pole
within Rights-of-Way when, in the opinion of the County, the public health, safety or welfare
requires such change, and the expense thereof shall be paid by Grantee.
11.9 Tower Specifications
Antenna supporting structures ("towers") shall be designed for proper loading as those industry
specifications may be amended from time to time. Antenna supporting structures shall be
painted, lighted, erected and maintained in accordance with all applicable rules and regulations of
the Federal Aviation Administration and all other applicable federal, State or local codes or
regulations.
11.10 Tree Trimming
Upon obtaining a written permit from the County, Grantee may prune or cause to be pruned any
tree or other natural growth in the Rights-of-Way that interferes with the System.
11.11 Standards
(A) All work authorized and required hereunder shall be done in a safe, thorough and
workmanlike manner. The Grantee must comply with all federal, State and local safety
requirements, rules, regulations, laws and practices, and deploy all necessary devices as required
by applicable law during construction, operation and repair of its System. By way of illustration
and not limitation, Grantee must comply with the National Electric Code, National Electrical
Safety Code and Occupational Safety and Health Administration (OSHA) Standards.
(B) Grantee shall ensure that all cable drops are properly bonded and grounded at the
home, consistent with applicable code requirements. All non-conforming or non-performing
cable drops shall be replaced by Grantee as necessary.
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(C) All installations of equipment, lines and facilities shall be durable and installed in
accordance with good engineering practices and of sufficient height to comply with all federal,
State and local regulations, ordinances and laws.
(D) Any opening or obstruction in the Rights-of-Way or other public places made by
the Grantee in the course of its operations shall be guarded and protected at all times by the
placement of adequate barriers, fences or boarding, the bounds of which, during periods of dusk
and darkness, shall be clearly marked and visible at night.
(E) Grantee and the County agree that nothing in this Agreement shall give Grantee
the right to construct new poles without prior Coanty approval. Furthermore, nothing contained
in this Agreement gives Grantee a right of pole attachment to County facilities or facilities owned
by third parties.
11.12 Stop Work
On notice from the County that any work is being conducted contrary to the provisions of this
Agreement, or in an unsafe or dangerous manner as determined by the County, or in violation of
the terms of any applicable permit, laws, regulations, ordinances or standards, the work may
immediately be stopped by the County. The stop work order shall:
(A) Be in writing;
(B) Be sent to Grantee by mail at the address given herein;
(C} Indicate the nature of the alleged viotation or unsafe condition; and
(D) Establish conditions under which work may be resumed.
11.13 Work of Contractors and Subcontractors
Grantee's contractors and subcontractors shall be licensed and bonded in accordance with local
ordinances, regulations and requirements. Work by contractors and subcontractors shall be
subject to the same restrictions, limitations and conditions as if the work were performed by
Grantee. Grantee shall be responsible for all work performed by its contractors and
subcontractors and others performing work on its behalf, and shall ensure that all such work is
performed in compliance with this Agreement and other applicable law, and shall be jointly and
severally liable for all damages caused by them. It is Grantee's responsibility to ensure that
contractors, subcontractors or other Persons performing work on Grantee's behalf are familiar
with the requirements of this Agreement and other applicable laws governing the work
performed by them.
11.14 Joint Trenching/Boring
The Grantee and the County recognize that situations may occur in the future where the County
may desire to place its own cab[e, telecommunication wiring, or conduit for fiber optic cable in
trenches or bores opened by the Grantee. The Grantee agrees to cooperate with The County in
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any construction by the Grantee that involves trenching or boring, provided that the County has
first notified the Grantee that it is interested in sharing the trenches or bores in the area where the
Grantee's construction is occurring. The Grantee shall allow the County to lay its cable, conduit
and fiber optic cable in the Grantee's trenches and bores, provided the County pays Grantee's
incremental cost of the trenching and boring. The County shall be responsible for maintaining its
respective cable, telecommunication wiring, conduit and fiber optic cable buried in the Grantee's
trenches and bores under this paragraph. County shall have the ability to sell or lease its cable,
conduit and fiber optic cable installed pursuant to this paragraph to any third party; provided,
however, that in the event the third party competes with Grantee, the County or the third party
shall reimburse Grantee for its proportional share of the original entire cost of the trenching and
boring.
As a condition of issuing a permit for open trenching to any utility, the County agrees to
require the utility to give the Grantee at least 10 days advance written notice of the availability of
the open trench or bore, and provide the Grantee with reasonable access to the open trench or
bore. Likewise, Grantee shall allow utility companies in the County reasonable access to its open
trench and bore, provided the utility shares in the cost of the trenching and boring. The utility
shall be responsible for maintaining its respective cable conduit and facilities buried in the
Grantee's trenches and bores.
11.15 GIS Magping and As-Buflt Maps
Upon thirty (30) days written request of the County, Grantee shall within a reasonable timeframe
comply with any generally applicable ordinances, rules and regulations of the County regarding
geographic information systems mapping for users of the Rights-of-Way.
11.16 Notice to Property Ownexs
Except for emergency situations, Grantee shall provide at least two (2) days prior written notice
to property owners before commencing work on public or private property. Grantee may provide
such notice by door hangers or other reasonable means.
SECTION 12. SYSTEM DESIGN
(A) The Cable System has been previously upgraded and is capable of 750 MHz and is
capable of delivering high quality signals that meet FCC technical quality standards regardless of
a particular manner in which the signal is transmitted. Grantee agrees to maintain the Cable
System in a manner consistent with, or in excess of, these specifications throughout the
Agreement.
(B) The Cable System shall be two-way capable, provided that the Grantee reserves
the right to use the bandwidth in the future for other uses based on market factors.
(C) Equipment must be installed so that all closed captioned programming received
and transmitted by the Cable System shall include the closed caption signal so long as the closed
caption signal is provided consistent with FCC standards.
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(D) Grantee acknowledges that the minimum Cable System design and performance
requirements set forth in this Agreement are enforceable, to the extent allowed by law.
SECTION 13. TECHNICAL STANDARDS
13.1 Technical Performance
The technical performance of the Cable System shall meet all applicable technical standards
authorized or required by law including, without limitation, FCC technical standards as they may
be amended from time to time, regardless of the transmission technology utilized. The County
shall have the full authority permitted by applicable law to enforce compliance with these
technical standards.
13.2 Inspection of Facilities
The County may inspect any of Grantee's facilities and equipment located in the Rights-of-Way
or on other public property at any reasonable time during business hours upon at least twenty-
four (24) hours notice, or, in case of an emergency, upon demand without prior notice. Where
inspection is warranted, the County shall have the right to charge generally applicable inspection
fees therefore. If an unsafe condition is found to exist, the County, in addition to taking any other
action permitted under applicable law, may order Grantee to make the necessary repairs and
alterations specified therein and correct the unsafe condition within the time specified by the
County. The County has the right to correct, inspect, administer and repair the unsafe condition
if Grantee fails to do so within the time specified and to charge Grantee the cost therefore. In
such event, the County shall not be liable for any damage to any portion of Grantee's Cable
System.
13.3 Cable System Performance Testing
(A) Grantee shall, at its expense, perform all tests on its Cable System required by law
and maintain written records of its test results. Upon advance request, all required technical
performance tests may be witnessed by representatives of the County. Copies of such test results
will be provided to the County upon written request.
(B) Grantee shall promptly take such steps and measures as are necessary to correct
any performance deficiencies fully and to prevent their recurrence. Grantee's failure to conect
deficiencies identified through this testing process shall be a material violation of this
Agreement. Sites shall be re-tested following correction until satisfactory results are obtained.
13.4 Additional Tests
(A) Where there exists a demonstrable ongoing pattern of poor technical performance,
then upon thirty (30) days prior written notice, the County may require Grantee to conduct proof-
of-performance tests on test points located within the Franchise Area and provide results of such
tests within thirty (30) days after completion thereof.
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(B) Grantee shall cooperate with the County in performing the testing described in
subsection (A) and shall prepare the results and a report. Such report shall include the following
information:
(1) the nature of the complaint or problem that precipitated the special tests;
(2) the Cable System component tested;
(3) the equipment used and procedures employed in testing;
(4) the method, if any, in which such complaint or problem was resolved; and
(5) any other information pertinent to said tests and analysis that may be
reasonably required.
SECTION 14. SERVICE EXTENSION
14.1 Service Availability
(A) Grantee shall provide a standard installation of Cable Service within seven (7)
days of a request by any person within its Franchise Area. For purposes of this Section, a request
shall be deemed made on the date of signing a service agreement, receipt of funds by Grantee,
receipt of a written request by Grantee or receipt by Grantee of a verified verbal request. Grantee
shall provide Cable Service:
(1) with no line extension charge except as specifically authorized elsewhere
in this Agreement;
(2) at a non-discriminatory installation charge for a Standard Installation,
consisting of a one hundred twenty-five (125) foot aerial drop or sixty (60) feet for an
underground drop connecting to the exterior demarcation point for Subscribers, with additional
charges for non-standard installations computed according to a non-discriminatory methodology;
and
(3) at non-discriminatory monthly rates for all Residential Subscribers.
(B) No Customer shall be refused service arbitrarily. However, for unusual
circumstances, such as a Customer's request to locate the cable drop underground with a distance
of more than sixty (60) feet or the existence of more than one hundred twenty-five (125) aerial
feet of distance from the distribution cable to connection of service to Customers, or a density of
less than twenty-five (25) residences per 5280 cable-bearing strand feet of trunk or distribution
cable, service may be made available on the basis of a capital contribution in aid of construction,
including cost of material, labor and easements. Customers who request service hereunder will
bear the remainder of the construction and other costs on a pro rata basis. The Grantee may
require that the payment of the capital contribution in aid of construction borne by such potential
Customers be paid in advance.
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(C) Grantee shall, subject to the line extension distance criteria set forth above and
upon request (but subject to Grantee recouping a reasonable amount of its construction costs)
make Cable Service available to all commercial establishments located within the County at the
expense of such commercial establishments.
14.2 Service to Multiple Dwelling Units
The Grantee shall provide Cable Service to multiple dwelling units in accordance with an
agreement with the property owner, this Agreement and all applicable laws. Additionally,
Grantee shall use best efforts to provide Cable Service to Customers in the Franchise Area that
are billed on a bulk billing basis.
SECTION 15. STANDBY POWER AND EMERGENCY ALERT SYSTEM
15.1 Standby Power
Grantee shall provide standby power generating capacity at the System Headend capable of
providing at least twenty-four (24) hours of emergency operation. Grantee shall maintain
standby power supplies throughout the System rated for at least four (4) hours duration.
15.2 Emergency Alert Capability
(A) Grantee shall provide an Emergency Alert System ("EAS") in accordance with
and as required by applicable laws and regulations.
(B) Grantee shall ensure that the EAS is functioning properly at all times. It will test
the EAS periodically, in accordance with federal and State regulations. Upon request, Grantee
will advise the County of the testing schedule so that the County may be present for the tests.
SECTION 16. BREACHES OF AGREEMENT
16.1 Procedure for Remedying Agreement Violations
(A) If the County believes that Grantee has failed to perform any material obligation
under this Agreement or has failed to perform in a timely manner, the County shall first
informally discuss the matter with Grantee. If this discussion does not lead to resolution of the
problem, the County shall notify Grantee in writing, stating with reasonable specificity the nature
of the alleged default. Grantee shall have thirty (30) days from the receipt of such notice to:
(1) respond to the County, contesting the County's assertion that a default has
occurred;
(2) cure the default; or
(3) notify the County that Grantee cannot cure the default within thirty (30)
days because of the nature of the default. In the event the default cannot be cured within thirty
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(30) days, Grantee shall promptly take all reasonable steps to cure the default and notify the
County in writing and in detail as to the exact steps that will be taken and the projected
completion date. Upon ten (10) business days prior written notice, either the County or Grantee
may call a meeting to discuss the alleged default. In such case, if matters are not resolved at such
meeting, the County may set a hearing in accordance with subsection (B) below to determine
whether additional time beyond the thirty (30) days specified above is indeed needed, and
whether Grantee's proposed completion schedule and steps are reasonable.
(B) If Grantee does not cure the alleged default within the cure period stated above, or
by the projected completion date under subsection (A)(3), or denies the default, or the County
orders a hearing in accordance with subsection (A)(3), the County shall set a public hearing to
investigate said issues or the existence of the alleged default. The County shall notify Grantee of
the hearing in writing, and such hearing shall take place no less than thirty (30) days after
Grantee's receipt of notice of the hearing, which notice shall specify the time, place and purpose
of such hearing. At the hearing, Grantee shall be provided an opportunity to be heard, to present
and question witnesses and to present evidence in its defense. The determination as to whether a
default or a material breach of this Agreement has occuned shall be within the County's sole
discretion, but any such determination shall be subject to appeal to a court of competent
jurisdiction.
(C) If, after the public hearing, the County determines that a default still exists, the
County shall order Grantee to correct or remedy the default or breach within ten (10) days of
County notification or within such other timeframe as the County shall determine. The County's
decision shall be provided to the Grantee in writing, setting forth the reasons supporting the
County's actions. In the event Grantee does not cure within such time to the County's reasonable
satisfaction, the County may:
(1) take steps to collect on the Performance Bond;
(2) assess and collect monetary damages in accordance with this Agreement;
(3) commence revocation procedures consistent with subsection 16.4 herein;
or
(4j pursue any other legal or equitable remedy available under this Agreement
or applicable law.
16.2 Alternative Remedies and Immunity
(A) Neither the existence of other remedies identified in this Agreement nor the
exercise thereof shall be deemed to bar or otherwise limit the right of the County to recover
monetary damages, as allowed under applicable law, or to seek and obtain judicial enforcement
of Grantee's obligations by means of specific performance, injunctive relief or mandate.
(B) The County specifically does not, by any provision of this Agreement, waive any
right, immunity, limitation or protection otherwise available to the County, its elected officials,
32
officers, boards, commissions, agents or employees under federal, State, or local law including,
by way of example, Section 635A of the Cable Act.
16.3 Assessment of Liquidated Damages
(A) Because it may be difficult to calculate the harm to the County in the event of a
breach of this Agreement by Grantee, the parties agree to liquidated damages as a reasonable
estimation of the actual damages in certain instances. Nothing in this subsection is intended to
preclude the County from exercising any other right or remedy in accordance with applicable law.
(B) Prior to assessing any liquidated damages, the County shall give Grantee written
notice and a thirty (30) day right to cure.
(C) The first day for which liquidated damages may be assessed, if there has been no
cure after the end of the applicable cure period, shall be the day of the violation.
(D) Liquidated damages shall be as follows:
(1) One hundred dollars ($100.00) per day for material departure from the FCC
technical performance standards;
(2) One hundred dollars ($100.00) per day for failure to provide the Access
Channels or any equipment related thereto or funding which is required;
(4) One hundred dollars ($100.00) per day for failure to comply with any other
material requirement of this Agreement;
Liquidated Damages may not be assessed for more than one hundred twenty (120) days.
16.4 Material Violations
(A) In addition to pursuing any other legal or equitable remedy available under this
Agreement, the County may revoke this Ab eement and rescind all rights and privileges associated
with this Agreement in any of the following circumstances:
(1) If Grantee fails to perform any material obligation under this Agreement;
(2) ff Grantee willfully fails for more than three (3) days to provide continuous
and uninterrupted Cable Service except for Force Majeure;
(3) If Grantee attempts to evade any material provision of this Agreement or to
practice any fraud or deceit upon the County or Subscribers; or
(4) If Grantee fails to provide the insurance, performance bond or other security
required by this Agreement.
33
(B) Priar to pursuing legal or equitable remedies and forfeiture or ternunation of the
Agreement, the County shall give written notice to the Grantee. The notice shall set forth the exact
nature of the noncompliance. Grantee shall have thirty (30) days from such notice to object in
writing and to state its reasons for such objection and provide any explanation. In the event the
County has not received a timely and satisfactory response from Grantee, it may then seek legal and
equitable remedies and a termination of the Agreement in accordance with this subsection.
(C) The County shall conduct a public hearing.
(1) At least thirty (30) days prior to the public hearing, the County Clerk shall
issue a public hearing notice that shall establish the issue(s) to be addressed in the public hearing;
provide the time, date and location of the hearing; provide that the Board shall hear any persons
interested therein; and provide that the Grantee shall be afforded fair opportunity for full
participation, including the right to introduce evidence, to require the production of evidence, to be
represented by counsel and to question witnesses.
(2) A verbatim transcript may be made by a court reporter of such proceeding
and the cost sha11 be paid by Grantee and County on a 50/50 basis.
(3) Within thirty (30) days after the close of the hearing, the Board shall issue a
written decision.
(D) Grantee shall be bound by the Board's decision unless an appeal to a court of
competent jurisdiction is filed within thirty (30) days of the date of the Board's decision. Grantee
and the County shall be entitled to such relief as the court may deem appropriate.
16.5 Purchase or Removal
(A) If this Agreement is lawfully ternunated or revoked, the County may, subject to
applicable law:
(1) Require Grantee to maintain and operate its Cable System on a month-to-
month basis until a new cable operator is selected; or
(2) Purchase Grantee's Cable System in accordance with federal law.
(B) The County may order the removal of the above-ground Cable System facilities and
such underground facilities from the Franchise Area at Grantee's sole expense within a reasonable
period of time as deternuned by the County. In removing its plant, structures and equipment,
Grantee shall refill, at its own expense, any excavation that is made by it and shall leave all Rights-
of-Way, public places and private property in as good a condition as that prevailing prior to
Grantee's removal of its equipment and without affecting electrical or telephone wires or
attachments. The indemnification, insurance, and bond(s) shall remain in full force and effect
during the period of removal, and Grantee shall not be entitled to, and agrees not to request,
compensation of any sort therefor.
3~
(C) If Grantee fails to complete any removal required by subsection 16.5 (B) to the
County's satisfaction, after written notice to Grantee, the County may cause the work to be done
and Grantee shall reimburse the County for the costs and expenses incurred within thirty (30) days
after receipt of an itemized list of the costs and expenses, or the County may recover the costs and
expenses through the Grantee's security instruments if Grantee has not paid such amount within the
foregoing thirty (30) day time period. Any costs and expenses incurred by the County regarding
such removal shall include reasonable attorneys' fees and costs and expenses for work conducted
by the County staff or its agents.
SECTION 17. ABANDONMENT
If the Grantee abandons its Cable System during the Agreement, the County, at its option, may
operate the Cable System; designate another entity to operate the Cable System temporarily until
the Grantee restores service under conditions acceptable to the County, or until the Agreement is
revoked and a new franchisee is selected by the County; or obtain an injunction requiring the
Grantee to continue operations. If the County is required to operate or designate another entity to
operate the Cable System, the Grantee shall reimburse the County or its designee for all reasonable
costs, expenses and damages incurred.
SECTION 18. RENEWAL AND TRANSFER
18.1 Renewal
The County and Grantee agree that any proceedings undertaken by the County that relate to the
renewal of the Agreement shall be governed by and comply with the provisions of Section 626 of
the Cable Act, unless the procedures or substantive protections set forth therein shall be deemed to
be preempted and superseded by the provisions of any subsequent provision of federal or State law.
18.2 Transfer
(A) This Agreement and the Cable System shall not be assigned, transfened, sold, or
disposed of, in whole or in part, by voluntary sale, sale and leaseback, merger, consolidation,
exchange of stock, by provision of a management agreement, or otherwise, or by forced or
involuntary sale, without the prior written consent of the County, which shall not be unreasonably
withheld, delayed or conditioned.
(B) Prior written approval of the County shall also be required where a controlling
interest in Grantee is to be acquired during this Agreement in any transaction, or series of
transactions, by a person or group of persons, none of whom owned or controlled Grantee,
singularly or collectively on the effective date of the Agreement. The term "controlling interesY' as
used herein is not limited to majority stock ownership but includes actual working control in
whatever manner exercised.
(C) The approval of a sale, transfer or change in control in one instance shall not render
unnecessary approval of any subsequent sale, transfer or change in control.
35
(D) Approval of a sale, transfer or change in control by the County does not constitute a
waiver or release by the County of its rights under this Agreement or applicable law.
(E) A transfer of this Agreement shall be conducted in accordance with federal law and
the requirements set forth in this Agreement. The County may request any information it deems
reasonable to evaluate the financial, technical and legal qualifications of the proposed transferee or
new controlling party. Any unresolved Agreement compliance issues shall be resolved prior to
completing any transfer, assignment or change in control unless the transferee elects to assume
liabilities for such unresolved Agreement compliance issues. Grantee, the proposed transferee and
new controlling party shall provide the information requested by the County in a timely manner.
(F) The County's consent to a sale, transfer or change in control shall not be
unreasonably withheld, delayed or conditioned.
(G) Notwithstanding anything to the contrary in this subsection, the prior approval of the
County shall not be required for any sale, assignment or transfer of the Agreement or Cable System
to an intra-company Affiliate; provided that the proposed assignee or transferee must show
financial responsibility as may be deternuned necessary by the County and must agree in writing to
comply with all of the provisions of the Agreement. Further, Grantee may pledge the assets of the
Cable System for the purpose of financing without the consent of the County; provided that such
pledge of assets shall not impair or mitigate Grantee's responsibilities and obligations under this
Agreement.
SECTION 19. MISCELLANEOUS PROVISIONS
19.1 Equal Employment and Non-discrimination
Throughout the term of this Agreement, Grantee shall fully comply with all equal employment and
non-discrimination provisions and requirements of federal, State and local laws.
19.2 Notices
Throughout the term of this Agreement, each party shall maintain and file with the other an
address for the delivery of notices and communications by mail. All notices and communications
shall be sent to such respective address(es), and such shall be effective upon the date of mailing.
At the effective date of this Agreement:
The Grantee's address shall be:
Comcast of Colorado/Florida, Inc.
8000 East Iliff Avenue
Denver, CO 80231
Attn: Government Affairs
With a Copy to:
Comcast
281 Metcalf Road, Suite 110
36
Avon, CO 81620
Attn: General Manager
The County's address shall be:
Pitkin County
Courthouse Plaza
530 East Main Street, Third Floor
Aspen, CO 81611
Attention: County Attorney
19.3 Captions and Headings
The captions and headings of the sections and subsections set forth herein are intended solely to
facilitate the reading hereof. Such captions and headings shall not affect the meaning or
interpretation of this Agreement.
19.4 Costs and Expenses to be Borne by Grantee
Costs and expenses to be bome by Grantee shall include all of the County's publication and hearing
costs related to this Agreement.
19.5 Attorneys' Fees
If any action or suit arises in connection with this Agreement, excluding subsequent franchise
renewal proceedings, the prevailing party shall be entitled to recover all of its reasonable attorneys'
fees, consultants' fees, costs and expenses in connection therewith, in addition to such other relief
as the court may deem proper.
19.6 Binding Effect
This Agreement shall be binding upon the parties hereto, their pernutted successors and assigns.
19.7 Authority to Amend
This Ab eement may be amended at any time by written agreement between the parties.
19.8 Venue
Venue for any judicial dispute between the County and Grantee arising under or out of this
Agreement shall be in the United States District Court for the District of Colorado or Pitkin County
Court in Aspen, Colorado.
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19.9 No Joint Venture
Nothing herein shall be deemed to create a joint venture or principal-agent relationship between the
parties, and neither party is authorized to, nor shall either party act toward third persons or the
public in any manner which would indicate any such relationship with the other.
19.10 Non-Waiver
The failure of the County at any time to require performance by Grantee of any provision hereof
shall in no way affect the right of the County hereafter to enforce the same. The waiver by the
County of any breach of any provision hereof shall not be taken or held to be a waiver of any
succeeding breach of such provision, or as a waiver of the provision itself or any other provision.
19.11 Governing Law
This Agreement shall be governed, construed and enforced in accordance with the laws of the State
of Colorado, the Cable Act, any applicable rules, regulations and orders of the FCC, and any other
applicable local, State and federal laws (as such now exist, are later amended or subsequently
adopted).
19.12 Actions of the County or Grantee
In any action by the County or Grantee mandated or pernutted under the provisions hereof, it shall
act in a reasonable, expeditious and timely manner. Furthermore, in any instance where approval or
consent is required under the terms hereof, such approval or consent shall not be unreasonably
withheld.
19.13 Force Majeure
Notwithstanding any other provision of this Agreement, the Grantee shall not be liable for delay in
the performance of, or failure to perform, in whole or in part, its obligations pursuant to this
Agreement due to an event or events reasonably beyond the ability of the Grantee to anticipate and
control. "Force majeure" includes, but is not limited to, acts of God, incidences of terrorism, war or
riots, labor strikes or civil disturbances and work delays caused by waiting for utility providers to
provide access to utility poles to which Grantee's facilities are attached.
19.14 Severability
If any Section, subsection, paragraph or provision of this Agreement is deternuned to be illegal,
invalid or unconstitutional by any court or agency of competent jurisdiction, such deternunation
shall have no effect on the validity of any other Section, subsection, paragraph or provision of this
Agreement, all of which will remain in full force and effect for the term of the Agreement.
38
19.15 Entire Agreement
This Agreement represent the entire understanding and agreement between the parties hereto with
respect to the subject matter hereof and supersede all prior oral and written negotiations between
the parties.
PASSED AND APPROVED THIS _ DAY OF , 2009.
BOARD OF COUNTY COMMISSIONERS
OF PITKIN COUNTY, COLORADO
By -
Title
ATTEST:
County Clerk
Accepted and approved this'~"~ day of(l~a,~,6~ 2009.
COMCAST OF COLORADO/FLORIDA, INC.
By ~
Title Timoth; T p~Me.
VP - Finance and Accourrting
39