HomeMy WebLinkAboutOrdinance 2373
NORTH RICHLAND HILLS
ORDINANCE NO. 2373
AN ORDINANCE AMENDING ORDINANCE NOS. 1862 AND 2066;
GRANTING CONSENT TO THE TRANSFER OF CONTROL OF A CABLE
TELEVISION SYSTEM AND FRANCHISE FROM MARCUS CABLE
ASSOCIATES, L.L.c. TO PAUL G. ALLEN; AND APPROVING AN
ACCEPTANCE AGREEMENT
WHEREAS, the City of North Richland Hills granted a cable television franchise to
Sammons of Fort Worth, Inc. ("Sammons") pursuant to Ordinance No. 1862, as amended; and
WHEREAS, the City's Ordinance No. 2066 consented to the transfer and assignment ofthe
Franchise and the cable television system in the City from Sammons to Marcus Cable Associates,
L.P. subject to the tenns and conditions set forth in the Ordinance and in an Acceptance Agreement
dated November 1, 1995. (The foregoing ordinances and the Acceptance Agreement of November
1, 1995 are hereinafter referred to collectively as the "Franchise"); and
WHEREAS, perfonnance of the obligations of the Franchise by Marcus Cable Associates,
L.P. was unconditionally guaranteed by Marcus Cable Operating Company, L.P., Marcus Cable
Company, L.P. and Marcus Cable Properties, L.P.; and
WHEREAS, Marcus Cable Associates, L.P. has converted to a Delaware limited liability
company named Marcus Cable Associates, L.L.C., which is the current grantee under the Franchise;
and
WHEREAS, the other Marcus entities that are guarantors of the perfonnance of the
Franchise have also converted to Delaware limited liability companies respectively named Marcus
Cable Operating Company, L.L.C. ("MCOC"), Marcus Cable Company, L.L.c. ("MCC") and
Marcus Cable Properties, L.L.C. ("MCPLLC"); and
WHEREAS, Marcus Cable Associates, L.L.c. is a wholly owned subsidiary of MCOC
which is in turn a wholly owned subsidiary ofMCC; and
WHEREAS, Charter Communications Holdings, L.L.C., a Delaware limited liability
company ("CC Holdings") is or will be the sole owner of MCC; and
WHEREAS, CC Holdings is or will be wholly owned by the following entities: MCPLLC,
Vulcan Cable, Inc., a Washington corporation ("Vulcan"), Vulcan Cable II, Inc., a Washington
corporation ("Vulcan II"), and Charter Communications, Inc. ("Charter"); and
WHEREAS, MCPLLC is owned 74.36% by Marcus Cable Properties, Inc., a Delaware
corporation ("MCP Inc.") and 25.64% by Vulcan; and
WHEREAS, Paul G. Allen is the sole owner ofMCP Inc., Vulcan and Vulcan II and owns
93.25% of Charter, and Allen thereby controls Marcus Cable Associates, L.L.C., the grantee under
the Franchise; and
WHEREAS, Vulcan is the Manager of MCC pursuant to First Amendment to Operating
Agreement dated as of August 25, 1998; and
WHEREAS, Charter is managing Marcus Cable Associates, L.L.C. pursuant to a
Management Consulting Agreement dated as of October 6, 1998; and
WHEREAS, the ownership and control structure as it will exist after the transfer of control
is shown in Exhibit A; and
WHEREAS, the transfer of control of Marcus Cable Associates, L.L.c. to Allen, the
restructuring of the Marcus and Charter cable businesses, and the management of Marcus Cable
Associates, L.L.C. by Charter are hereinafter referred to collectively as the "Transaction"; and
WHEREAS, MCPLLC and Vulcan submitted an Application for Franchise Authority
Consent on FCC Fonn 394 providing certain infonnation with respect to the parties and the proposed
transfer; and
WHEREAS, MCPLLC, Charter and Vulcan submitted additional information and documents
relating to the Transaction and its effect on the provision of cable television service within the City
in response to requests of the City; and
WHEREAS, the City is relying upon the foregoing infonnation and documents in acting
upon the Application for Franchising Authority Consent; and
WHEREAS, the City intends to consent to the Transaction, subject to acceptance by Marcus
Cable Associates, L.L.c., MCP Inc., CC Holdings, Charter, Vulcan and Vulcan II of the terms and
conditions set forth herein, having detennined that such consent is in the best interest of and
consistent with the public necessity and convenience of the City;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, TEXAS:
Section 1. The City does hereby consent to the Transaction, including the transfer of
control of the Franchise and the cable television system from Marcus Cable Associates, L.L.C. to
Paul G. Allen, subject to execution by Marcus Cable Associates, L.L.c., MCP Inc., CC Holdings,
Charter, Vulcan and Vulcan II of an Acceptance Agreement in the fonn attached hereto and
incorporated herein as Exhibit 1, and subject to execution by Paul G. Allen of an Agreement in the
form attached hereto and incorporated herein as Exhibit 2.
Section 2. To the extent that this ordinance or the attached Acceptance Agreement and
Agreement modify any of the terms and conditions of Ordinance Nos. 1862 or 2066 said ordinances
are hereby amended. Except as hereby amended, the provisions of Ordinance Nos. 1862 and 2066
shall remain unchanged.
Section 3. This ordinance shall be in full force and effect from and after its passage,
publication and written acceptance as above specified; provided however, that this ordinance shall
expire and be of no further force and effect on October 31, 1999 if the entire Transaction has not
been consummated by that date.
Adopted this ~ day of March
,1999.
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'\ORTH RICHL.·\,\D HILLS
AGREE\1ENT
Paul G. Allen. as transferl'ç of ultimate control of \tarcus Cable :\ssociates, LLC..
makes the following agreement for the purpose of accepting an ordinance of the City of
~orth Richland Hills ("City") consenting to the transfer of control of the cable television
franchise in the City and the restructuring described in an Acceptance Agreement dated _
. 1999. Capitalized \vords and phrases in this Agreement have the meaning set
forth in the Acceptance Agreement.
1. Covenants Binding. The promises, covenants, and conditions
contained herein inure to the benefit of the City and are binding on
Allen.
2. Acknowledgment: Allen acknowledges that the transfer of control and
restructuring are expressly subordinate to and will not affect the
binding nature of the Franchise and the obligations provided therein,
and that the consent of the City to the Transaction does not constitute
a waiver or release of any rights of the City.
3. Reliance: Allen acknowledges that the City has consented to the
Transaction in reliance upon the representations, documents and
information provided by Company, Charter, Vulcan and Allen, all of
which are incorporated herein by reference.
4. Alleged Prior Defaults. Allen agrees that he will not contend directly
or indirectly that any defaults or failures to comply with the franchise
or other matters set forth in 47 use § 546(c)(l)(A) (Communications
Act of 1934, Section 626( c)( I )(A) (collectively "Defaults") which may
have occurred prior to the Transaction are waived, including but not
limited to the following:
4.1. The ability of the City to obtain redress for alleged prior
Defaults, such as recovery of any underpayment of franchise
fees or obtain refunds for periods prior to the Transaction.
4.2. The ability of the City to enforce in the future any Franchise
terms which may not have been enforced in the past.
Date:
-+.3. The abdlty of the City to consIder alleged Defaults l)((Urnng
prior to the Transaction in connection \!, Ith any rene\!' al or
nonrenewal of the Franchise.
-+.-+. This Section -+ is without prejudice to Company contending that
an alleged default or failure to comply either did not occur or
has been cured.
5. Continuity of Management. AlIen acknowledges that (a) at the time of
submission of the Fonn 394 subscribers residing in the City were
experiencing serious and on-going deficiencies in service, (b) the
provisions of Exhibit B are in response to these problems, and (c) the
City is approving the Transaction and the transfer of control in reliance
on the actions taken by Allen and Charter in the interim to improve
customer service and in the expectation of continuity of Charter's
management to assure that the problems will not recur. Allen has
caused the City to be infonned that he intends to keep the present
Charter management team in place.
5.1. Allen agrees that if there is any substantial change in Charter's
senior management prior to December 31, 2001, then (a) Allen
or William D. Savoy, and (b) a top officer of Charter, upon
request, will appear in person in a public forum in Tarrant
County, Texas (to be held jointly with other cities with whom
Allen has made a similar agreement) in advance of the change
for the purpose of explaining the change and answering
questions. "Substantial change" for purposes of this Section
means a change of the CEO of Charter or the senior executive
reporting to him or her who is responsible for the systems in
Texas managed by Charter.
Paul G. Allen
¡:'D\L\ PCDOCS GRR ~63~3ö !
NORTH RlCHLAND HILLS
ACCEPTANCE OF TERMS
AND CONDITIONS TO TRANSFER OF CONTROL OF A
CABLE TELEVISION SYSTEM AND FRANCHISE
("ACCEPTANCE AGREEMENT")
This Acceptance Agreement dated as of , 1999 relates to a cable television
franchise granted by the City of North Richland Hills ("City") in Ordinance No. 1862 as
amended by Ordinance No. 2066 and an Acceptance Agreement dated November 1, 1995.
The foregoing ordinances and the 1995 Acceptance Agreement are hereinafter referred to
collectively as the "Franchise." Marcus Cable Associates, L.L.C., formerly Marcus Cable
Associates, L.P., is the current grantee under the Franchise and is referred to herein as
"Company".
Company is a wholly owned subsidiary of Marcus Cable Operating Company, L.L.c.
Marcus Cable Operating Company, L.L.c. is a wholly owned subsidiary of Marcus Cable
Company, L.L.c. Marcus Cable Company, L.L.C. is in turn wholly owned, directly or
indirectly, by Marcus Cable Properties, Inc. ("MCP") and Vulcan Cable, Inc., a Washington
corporation ("Vulcan"). MCP and Vulcan are wholly owned by Paul G. Allen ("Allen").
The following matters are the subject of this Acceptance Agreement:
· Vulcan will become the Manager of Marcus Cable Company, L.L.c. pursuant
to First Amendment to Operating Agreement dated August 25, 1998.
· Allen has acquired 93.25% ownership of Charter Communications, Inc.,
("Charter"), a Delaware corporation that indirectly owns all of the Charter
cable television operating entities. Charter has been conducting the day-to-day
operations of Company pursuant to a Management Consulting Agreement
dated as of October 6, 1998.
· Charter Communications Holdings, L.L.c. ("CC Holdings"), a Delaware
limited liability company, owns or will own I 00% of Marcus Cable Company,
which will continue to own 100% of Marcus Cable Operating Company,
L.L.c., which in turn owns 100% of Company and 100% of all other Marcus
cable television operating entities. CC Holdings will also have indirect 100%
ownership of all Charter cable television operating entities.
· CC Holdings will be 100% owned directly or indirectly by MCP, Vulcan,
Charter and Vulcan Cable II, Inc. ("Vulcan II"), a Washington corporation.
Allen owns 100% of Vulcan II in addition to his ownership of 100% ofMCP
and Vulcan and 93.25% of Charter.
Vulcan, Vulcan II, Charter, CC Holdings, MCP and Marcus Cable Associates, L.L.c.
make this agreement for the purpose of accepting an Ordinance of the City consenting to the
transfer of control of the franchise to Allen and the restructuring set forth above, including
management of Company by Charter.
The structure of ownership and control as it will exist after the transfer of control and
the restructuring is set forth in Exhibit A attached hereto. The transfer of control of
Company to Allen and the foregoing restructuring, including Charter's management of
Company, are referred to collectively herein as the Transaction.
1. Covenants Binding: The promises, covenants, and conditions contained herein
inure to the benefit of the City and are binding on MCP, Charter, Vulcan,
Vulcan II, CC Holdings and Company.
2. Acknowledgment: CC Holdings, MCP, Charter and Vulcan acknowledge that
the transfer of control and restructuring are expressly subordinate to and will
not affect the binding nature of the Franchise and the obligations provided
therein, and that the consent of the City to the Transaction does not constitute
a waiver or release of any rights of the City.
3. Reliance: Company, CC Holdings, MCP, Charter and Vulcan acknowledge
that the City has consented to the Transaction in reliance upon the
representations, documents and infonnation provided by Company, Charter
and Vulcan, all of which are incorporated herein by reference.
4. Customer Service. Company will comply with the customer service and
consumer protection provisions set forth in Exhibit B.
5. Prior Defaults. Company, MCP, Charter, Vulcan and CC Holdings agree that
they will not contend directly or indirectly that any defaults or failures to
comply with the franchise or other matters set forth in 47 USC § 546(c)(I)(A)
(Communications Act of 1934, Section 626( c)( 1 )( A) (collectively "Defaults")
occurring prior to the Transaction are waived, including but not limited to the
following:
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5.1 The ability of the City to obtain redress for prior Defaults, such as
recovery of any underpayment of franchise fees or obtain refunds for
periods prior to the Transaction.
5.2 The ability of the City to enforce in the future any Franchise terms
which may not have been enforced in the past.
5.3 The ability of the City to consider Defaults occurring prior to the
Transaction in connection with any renewal or nonrenewal of the
Franchise.
5.4 This Section 5 is without prejudice to Company, MCP, Vulcan or CC
Holdings contending that the default or failure to comply has been
cured.
6. Validity of Franchise. Charter, MCP, CC Holdings and Vulcan accept and
agree to be bound by the terms and conditions of the City Charter, the
Franchise and all ordinances applicable to Company's operations after the
transfer. Charter, MCP, CC Holdings, Vulcan and Company do not contend
that any provision of the Franchise is unlawful or unenforceable, nor are they
aware of any ordinance or any provision in the City Charter which they
contend is unlawful or unenforceable. The City acknowledges that the
Franchise is in full force and effect.
7. Franchise for Cable Only. Company, MCP, CC Holdings, Charter and Vulcan
acknowledge that the Franchise is granted solely for the provision of Cable
Service including services described in Section 12.
8. Service and Equipment for Public Facilities.
8.1 Following the transfer of control, Charter, MCP, CC Holdings and
Vulcan will cause Company to continue to provide the same
installations and service without charge to public facilities being
provided at the present time, but in all events no less than is required by
the Franchise, this Acceptance Agreement or any applicable city
ordinance.
)
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8.1.1 Company will provide funds toward the cost of new character
generators or similar equipment in accordance with Schedule
8.1.1 attached hereto. Company's total obligation under this
Section 8.1.1 for the City and all other municipalities which
have acted with the City in the consent process shall not exceed
$75,000.
9. Access to Records: The records and reports of the ITanchise grantee which are
to be submitted to the City or otherwise made available for the City (such as
for inspection by the City) pursuant to the Franchise or other ordinance or
charter provisions of the City shall include records maintained by Charter,
Vulcan, CC Holdings and their Affiliates to the extent necessary for the City
to discharge its responsibilities under the Franchise, FCC rules or state or local
law, or to insure compliance with the Franchise or this Acceptance Agreement.
10. Transaction Transparent to Rates: CC Holdings, Charter, MCP, Company and
Vulcan acknowledge that unless expressly provided elsewhere in this
Acceptance Agreement (a) the transfer, the consent process, the City's action
granting consent, and this Acceptance Agreement and the tenns hereof (other
than Sections 18.2, 21.1 and 21.2) do not provide any basis for increasing the
amounts paid by subscribers through cost pass-through as so-called "external
costs" or as new franchise requirements, (b) the consent process, action, and
this Acceptance Agreement do not provide any basis for increasing the
amounts paid by subscribers in any other manner, and (c) Company will not
separately itemize costs or franchise requirements arising from this
Acceptance Agreement on subscriber bills.
11. This Section left blank.
12. Cable Modem. High-Speed Data and Internet Services. The Federal
Telecommunications Act of 1996 modified the definition of "cable services"
in the Federal Cable Act (Title VI of the Communications Act of 1934,47
USC Section 115 and following). The change addresses cable companies'
ability to provide Enhanced, Advanced Cable Services over a Cable System
as a cable service (and not as a telephone service, with accompanying
telephone regulation.) The Franchise predates and does not reflect this
legislative change. Company intends to provide Enhanced, Advanced Cable
Services where economically feasible.
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12.1 To remove any uncertainty on Company' authority to provide
Enhanced, Advanced Cable Services the parties agree that Company
has the authority to provide Enhanced, Advanced Cable Services under
the Franchise and that the revenues therefrom shall be included in gross
revenues for the purpose of computing and paying cable franchise fees.
12.2 If Company provides any Enhanced, Advanced Cable Services to
residential subscribers within the City, then without any initial or
ongoing charge it shall provide the City cable modems and associated
access to the Internet with a speed of up to 250 kbs. Such modems and
service shall be provided to each City library located within City and
to three (3) additional locations specified by the City in City buildings.
13. System Upgrade. If Company has scheduled an upgrade of Company's
facilities in the City that has not yet been completed, the estimated completion
date is shown on Schedule 13. Company, CC Holdings, MCP, Charter and
Vulcan agree that the Transaction will not adversely affect the scope or timing
of the upgrade.
14. Continuity of Management. Company, CC Holdings, MCP, Charter and
Vulcan acknowledge that (a) at the time of submission of the Form 394
subscribers residing in the City were experiencing serious and on-going
deficiencies in service, (b) the provisions of Exhibit B are in response to these
problems, and (c) the City is approving the Transaction and the transfer of
control in reliance on the actions taken by Allen and Charter in the interim to
improve customer service and in the expectation of continuity of Charter's
management to assure that the problems will not recur. Allen and Charter
have informed the City that they intend to keep the present Charter
management team in place. Until the Transaction is completed, Charter will
continue to manage Company and the cable television system in the City.
15. Frequency of Rate Increases. Company will not file a submission to increase
its rates for basic cable service, equipment, or service calls regulated by the
City more than once in each calendar year.
16. Other Matters.
16.1 Conflict: In the event of any conflict between the terms of this
Acceptance Agreement and the Franchise or any City Ordinance, that
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provision which provides the greatest benefit to the City, in the opinion
of the City Council, shall prevail.
16.2 Waivers: The parties hereto will join the City in obtaining from the
FCC any waivers or other relief from time to time necessary to
effectuate the provisions of this Acceptance Agreement.
16.3 Null and Void: At the City's option this Acceptance Agreement and
the City's consent to the Transaction shall become null and void in
either of the following circumstances. Such option may be exercised
prior to completion of the Transaction by the City giving written
notice to Company and Vulcan at the addresses designated in the Fonn
394.
16.3.1
If the transfer of control of the Franchise or any other
part of the Transaction is not completed on or before
October 31, 1999.
16.3.2
If the Management Consulting Agreement dated as of
October 6, 1998 pursuant to which Charter is directing the
management of Company is tenninated or if Charter's
control over Company's operations is materially reduced.
16.4 Costs: Vulcan will cause the City to be reimbursed for its reasonable
expenses in connection with the consent process including publication
costs and fees of consultants and attorneys. Such reimbursement shall
not exceed the aggregate amount of $275,000 plus publication costs for
the City and the other municipalities which have acted with the City in
connection with the consent process. Reimbursement of costs and fees
under this provision shall not be considered a payment of franchise
fees, shall not be passed through to subscribers and is subject to the
provisions of Section 10.
16.5 Venue and Choice of Law: Venue of any suit under or arising out of
this Acceptance Agreement shall be exclusively in Tarrant County,
Texas or in the United States District Court for the Northern District of
Texas. This Acceptance Agreement shall be construed in accordance
with the laws of the State of Texas.
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16.6 Treatment of Liquidated Damages: Company, CC Holdings, MCP and
Vulcan acknowledge and agree that liquidated damages under this
Acceptance Agreement (including its Exhibits) and the Franchise do
not constitute franchise fees, do not reduce the amounts otherwise
payable as franchise fees, and will not be passed through to subscribers.
16.7 Y2K Compliance: By September 30, 1999 Company will become Y2K
compliant and will establish and provide the City with a copy of a
contingency plan to prevent disruption of mission critical components
including customer service matters.
16.8 Wire Maintenance Fee: Company has announced its intention to
discontinue the 99¢ optional wire maintenance fee program that
Company first implemented in 1998 ("Current Fee") and offer in its
place an optional program covering maintenance of both telephone and
cable wires for a monthly fee of approximately 99¢ ("New Program").
16.8.1 If this occurs during or before March 1999: (a) the City will not
seek to obtain refunds of amounts collected under the Current
Fee; (b) if the City has adopted a Rate Order with respect to the
Current Fee, the Rate Order will be deemed to be withdrawn;
and ( c) if there is a proceeding pending before the FCC with
respect to such a Rate Order Company and the City will jointly
request termination of the proceeding.
16.8.2 The City will not challenge the New Program during 1999 if the
monthly charge remains under $1.00.
16.9 Rate Orders: Unless a final order of the FCC (affirmed on appeal if an
appeal is taken) determines that franchise authority rate orders are
automatically stayed by the filing of an appeal to the FCC, Company
will implement each rate order adopted by the City unless and until
Company obtains an order of the FCC or a court of competent
jurisdiction staying the effectiveness of the rate order. Company will
reimburse all attorneys fees and other expenses incurred by the City as
a result of a violation of this Section 16.9.
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16.10 Franchise Fee Calculation: Company will comply with the decision of
the United States Court of Appeals for the Fifth Circuit in City of
Dallas v FCC, 118 F3d 393 (1997).
16.10.1
16.1 0.2
Company will pay the additional franchise fees due
under the Fifth Circuit decision with interest and without
pass-through to subscribers for the time period from
September 1997 until Company implemented the
decision.
Company will also pay the additional franchise fees due
under the Fifth Circuit decision for the period of time
from the FCC's decision in United Artists Cable of
Baltimore, 10 FCC Rcd. 7250 (1995) to September 1997
together with interest thereon. Company may pass
through payments under this Section 16.10.2 to
subscribers (other than interest) if and to the extent
Company reduced its charges to subscribers as a result of
the FCC's decision.
17. Institutional Network : Company shaH provide, construct, operate and
maintain an Institutional Network (excluding coders/decoders, interface and
other tenninal equipment which wi1l be supplied by Users) that will provide
the City and other I-NET Users with Institutional Network Services. The 1-
NET shaH be as set forth below. Unless the City agrees otherwise in writing,
the I-NET, including the individual fiber optic fibers constituting aH or a
portion of it, shaH be owned and maintained by Company but provided for the
exclusive use of the City and other I-NET Users and sha11 be provided without
any charge to the City or I-NET Users.
17.1 Detailed specifications for the I-NET and the locations to be served are
set forth on Exhibit 17.
17.2 Company shaH insta11 and tenninate additional fiber optic pairs
("Incremental I-NET Fiber") in Company's future new and replacement
fiber optic insta11ations for use as an I-NET as fo11ows.
17.2.1 City will infann Company in writing from time to time of the
additional facilities it would like to have served by an I-NET.
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Company will use such information in its plans for future fiber
installations, where (for example) one routing will pass a facility
City would like to have served and another (of comparable cost)
would not.
17.2.2 By January 31 of each year Company will provide City with its
conceptual plans for new and replacement fiber optic
construction for that calendar year.
17.2.3 Company will also provide City from time to time during the
year with written notice of conceptual plans for any additional
fiber optic construction during that year (or January of the
following year). Such notice shall be provided as soon as is
feasible.
17.2.4 Upon written request by City, Company will provide City with
a conceptual cost estimate (and other information City may
reasonably require) of installing Incremental I-Net Fiber along
all or a portion of the routes that are a part of such conceptual
plans. Such estimates shall be provided as soon as possible after
request by City in order that City may have time to obtain
approval (such as from its legislative body) to install such
Incremental I-Net Fiber.
17.2.5 As to any route where City has requested a conceptual cost
estimate, Company shall provide City with the final cost of
installing Incremental I-Net Fiber (and such other infonnation
as City may reasonably request) as soon as Company's design
of the fiber for such route is reasonably complete. City will
have 30 days after receipt of the final cost figure to notify
Company to install Incremental I-NET Fiber.
17.2.6 The cost of installing Incremental I-NET Fiber shall be
computed on an incremental basis, meaning the difference in
cost to Company of constructing and installing fiber on a given
route (a) with, and (b) without, the Incremental I-NET Fiber.
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17.2.7 Company shall be reimbursed by City for the cost of installing
I-NET fibers under this Section 17.2 computed as set forth in
Section 17.2.6.
17.3 I-NET Maintenance. Company shall provide I-NET Users with a
reliable level of service, repair and maintenance that at a minimum,
meets the following perfannance standards:
17.3.1 Company shall maintain a minimum of 99.5 percent service
availability to I-NET Users measured over a period of one year.
17.3.2 Company shall respond to repair requests from an I-NET User
for circuits identified as critical pursuant to Section 17.3.4
within 2 (two) hours of the request. Company shall respond to
other repair requests within four (4) hours of the request.
17.3.3 Company shall provide ongoing maintenance at its discretion,
as it deems necessary. Company shall provide at least one week
advance notice to any affected I-NET User of any maintenance
requiring temporary interruption of services, except in
emergency situations.
17.3.4 Company and the City shall develop a mutually agreeable
priority listing of critical circuits and their tenninal locations.
When notifying Company of service complaints, an I-NET User
shall identify critical circuits requiring priority repair. Company
shall escalate repair of critical circuits to the extent reasonable
under the circumstances.
17.4 Definitions.
17.4.1 Institutional Network or I-NET means the fiber optic
communications network described in Section 17 and Schedule
17 to be constructed and operated by Company for the provision
to I-NET Users (but not Cable Service subscribers) of
Institutional Network Services.
17.4.2 Institutional Network Services means the provision of usable
bandwidth capacity to I-NET Users through fiber optic lines for
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applications including but not limited to two-way dedicated
voice, data, video and telephony channels connecting and
interconnecting facilities owned, leased or used by the City,
schools, counties, road commissions or other units of state or
local government. Other applications include but are not limited
to computerized traffic control systems for coordinated traffic
control on an area-wide basis; Supervisory Control and Data
Acquisition (SCADA) systems for municipally owned water,
sewer, gas and electric systems (including street lighting
systems); interconnection of facilities serving police, fire and
other public safety systems, video arraignment facilities for local
courts; interconnection of government buildings for the two or
one-way interchange of video signals; and local area networks
or wide-area networks connecting governmental buildings, such
as for GIS (Geographical Informational Systems) purposes.
17.4.3 I-NET User means and is limited to the City and any school or
unit of state or local government designated by the City to
receive Institutional Network Services under this Acceptance
Agreement.
18. HDTV: Broadcast and cable channels are likely to convert in whole or in part
to an HDTV (high definition television) format within the next few years, with
channels likely being delivered in both HDTV and conventional analog
formats during a transition period. The following provisions address the
ability of the City to acquire additional PEG Channels such that one or more
Users may have their signals simultaneously delivered by the Cable System in
both an HDTV and conventional analog 6 MHz NTSC format for the transition
period, and provide funds for Users to convert to an HDTV format.
18.1 Reports: Company shall provide quarterly reports to City on its plans
and progress for HDTV conversion, including the number of channels
to be converted, date, equipment changes, formats to be used and other
information reasonably necessary for the City to be able to plan an
appropriate and potentially concurrent conversion of PEG Channels and
facilities to HDTV format.
18.2 Grant: After the date when Company provides at least fifty (50)
channels in one or more of several high definition television (or
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successor) formats, as such formats may from time to time be adopted
or in effect ("HDTV Format"), then upon request from City Company
shall provide a Capital Facilities grant to City sufficient for Users to
convert all their facilities and equipment (including but not limited to
studios, vans, video, audio, lighting, control, storage and editing
equipment) to the HDTV Format selected by City but with the amount
of such grant not to exceed 30¢ per customer per month when
amortized over Company's subscribers as of the end of the calendar
quarter preceding the date when the grant is made, using straight line
amortization without interest for the lesser of five (5) years or the
remaining term of the Franchise. City shall allocate the grant among
Users for such purpose as City deems is in the public interest. Company
shall modify the cable system whereby Company receives PEG signals
from each User (for redistribution on its Cable System) so as to be
capable of receiving and accepting the User's signals. City shall co-
ordinate with Company to ensure that the HDTV Format selected by
City is compatible with the format employed by Company.
18.3 Temporary Additional PEG Channels: After the date when Company
provides at least fifty (50) channels in HDTV Format, City may from
time to time request, and Company shall provide, one additional PEG
Channel so as to allow, to the extent deemed appropriate by City, PEG
Channel simulcasting in both 6 MHz analog NTSC format and in an
HDTV Format. Company need no longer provide the additional PEG
Channel described in the preceding sentence when Company no longer
provides any channel of programming on the Cable System in 6 MHz
NTSC analog format.
18.4 Allocation of PEG Channels: As of the effective date of this
Acceptance Agreement City may allocate and reallocate PEG Channels
as follows: City may at any time on six (6) months notice to Company
allocate or reallocate the usage of the PEG Channels among and
between different uses and Users. This expressly may include City
removing a User or PEG Channel, replacing a User or PEG Channel,
requiring several different persons to share or jointly use a given PEG
Channel or conversely allowing one or more persons currently sharing
such a channel to have a channel on which they are the sole User.
12
19. Leased Access and PEG Channels: The need for a PEG Channel can be
removed by Company providing the User designated by City of such current
or prospective PEG Channel with an otherwise identical leased access channel,
so long as the leased access rate for such User is One Dollar ($1.00) per year.
In the event the preceding sentence is exercised it shall be applied first to
educational channels and then to public channels. If applied to such channels
the channel number on which they are carried shall not be changed and such
channels shall be included in the basic tier of service and shall be listed in
Company's program guide or comparable listing with an appropriate
description, such as "City of Fort Worth Channel" or "Fort Worth Public
Schools ChanneL" The need for a PEG Channel is removed only so long as
the User in question in fact is provided with such leased access channel.
20. Transfer. City consent in advance shall be required for a transfer of control of
Company, which shall include, but is not limited to, any of the following:
20.1 Any change in limited partnership interests, non-managing limited
liability company interests, or non voting stock representing thirty
percent or more of the equity interests in the entity in question.
20.2 Any option, right of conversion or similar right to acquire interests
constituting control without substantial additional consideration (such
as compared to consideration previously provided).
20.3 Any change in the effective control of Company including that
described in 47 C.F.R. § 76.501 and following (including the notes
thereto but excluding footnote 2f) as in effect on the date of this
Acceptance Agreement.
20.4 A transfer by Paul G. Allen of any interest in MCP, Vulcan, Vulcan II
or Charter other than to an entity at least 80% owned by him that
assumes the guarantees provided in Section 23.
20.5 Any transfer or transfers such that the direct and indirect ownership of
Allen in CC Holdings is less than 70%.
20.6 Any acquisition of more than 10% ownership of CC Holdings by a
person or entity (or a group of persons or entities acting together) other
than Allen or entities wholly or more than 80% owned by Allen.
13
21. Special Provisions:
21.1 Pursuant to Section 10(k) of the Franchise Ordinance Company will
provide one cable modem and associated access to the Internet to the
Birdsville Independent School District at the new High School at
Midcities Blvd. under the terms of Section 12.2 in addition to those
specified in Section 12.2.
21.2 With respect to the Citicable Channel in the City (a) Company will use
its best efforts to continue the present location on channel 7 (and will
pay all notice, printing and other costs in connection with any change
in channel location), and (b) Company will provide the necessary
equipment and facilities to allow Citicable Channel 7 and BISD
channel 50 to broadcast live from the BISD StadiumlFine Arts complex
and to allow two-way audio/video capabilities.
22. Definitions. The following definitions shall apply for the purpose of this
Acceptance Agreement and its Exhibits.
22.1 Affiliate means any individual, partnership, association, joint stock
company, limited liability company, trust, corporation, or other person
or entity who owns or controls, or is owned or controlled by, or is under
common ownership or control with the entity in question.
22.2 Capital Facilities means PEG Channel and I-NET related facilities and
equipment including fiber lines, studios, production facilities, vans and
cameras or other property having a useful life of more than one year, as
well as any expenditures which increase or add to the value of the
facilities or equipment, adapt the facilities or equipment to new or
different uses, or maintain, restore, extend or prolong the useful life of
such facilities or equipment.
22.3 Cable Service means
22.3.1 The one-way transmission to all subscribers of (i) Video
Programming, or (ii) other programming services, by which is
meant information which Company makes available to all
subscribers generally, such as digital cable radio service, and
14
22.3.2 Subscriber interaction, if any, including but not limited to that
which is used for the selection or use of such Video
Programming or other programming services, selecting from
various on-screen options, use of Enhanced, Advanced Cable
Services, game channels, interactive services, downloading
programs or data access, or ordering merchandise, and
22.3.3 Institutional Network Services.
22.4 Cable System or System 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 Services to
multiple subscribers within the franchised area, but such term does not
include (i) a facility that serves only to re-transmit the television signals
of one or more television broadcast stations; (ii) a facility that serves
subscribers without using any public right of way; (iii) a facility of a
common carrier which is subject, in whole or in part, to the provisions
of Title II of the Communications Act of 1934, as amended, except that
such a facility shall be considered a Cable System (other than for
purposes of Section 621(c) of such Act) 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; (iv) an open video system that complies with Section 653 of
Title VI of the Communications Act of 1934, as amended; or (v) any
facilities of any electric utility used solely for operating its electric
utility system.
22.5 Enhanced. Advanced Cable Services means enhanced services,
information services, Internet protocol (IP) telephony, high speed data
service, Internet access and Internet service (such as that of an Internet
service provider).
22.6 KÇ means the Federal Communications Commission.
22.7 I-NET User has the meaning set forth in Section 17.4.3.
22.8 Institutional Network or I-NET has the meaning set forth in Section
17.4.1.
15
22.9 Institutional Network Services has the meaning set forth in Section
17.4.2.
22.10 PEG Channels means the public channels, educational channels and
government channels provided by Company on the cable system under
the Franchise, this Acceptance Agreement, or applicable ordinance, and
shall include leased access channels provided pursuant to Section 19
herein.
22.11 User means a person authorized to operate or use a PEG Channel (or a
leased access channel provided in lieu of a PEG Channel under Section
19) or the I-NET, and shall include City. If severa] persons share the
operation of a PEG Channel each person shall be a separate User.
22.12 Video Programming means programming provided by, or generally
considered comparable to programming provided by, a television
broadcast station.
23. Guarantee. Marcus Cable Properties, Inc., Vulcan Cable, Inc., Vulcan Cable
II, Inc., Charter Communications, Inc. and Charter Communications Holdings,
L.L.c. hereby jointly and severally unconditionally guarantee performance of
the obligations of the Franchise and of this Acceptance Agreement by
Company.
Vulcan Cable, Inc.
By:
Vulcan Cable II, Inc.
By:
16
Marcus Cable Associates, L.L.C.
By:
Marcus Cable Properties, Inc.
By:
Charter Communications, Inc.
By:
Charter Communications Holdings, L.L.c.
By:
17
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EXHIBIT B TO ACCEPTANCE AGREEMENT
CUSTOMER SERVICE AND CONSUMER PROTECTION
1. Customer Service Standards: Company shall at all times comply with the
more stringent of the customer service and consumer protection provisions of
this Exhibit B, the Franchise and the FCC. This requirement is in addition to
the specific provisions of subsequent sections set forth below.
1.1 Company shall continue to comply with the National Cable Television
Association's On-Time Customer Service Guarantee, a copy of which
is attached as Exhibit B I. The guarantee promises on-time service calls
or the customer receives $20.00, and on-time installation calls or the
customer receives a free installation. The $20.00 may be in the form of
a credit.
1.2 Company may provide the Customer Bill of Rights of Charter to its
subscribers in the City.
2. City Monitoring: In addition to free outlets, free cable service or services
otherwise required by the Franchise, Company shall provide one service outlet
(which shall be at the Cable Administrator's office at City Hall, unless
otherwise specified by City) that shall receive without charge all programming
(and any other Cable Services) provided by Company, including services of
a premium, pay per view or other nature. Such service shall be provided in
such a manner that City may monitor the programming and use of the cable
system for compliance with the Franchise, this Acceptance Agreement, FCC
technical standards, and applicable law. The services provided pursuant to this
Section 2 shall be in a secure office location and not in a location open to
public viewing.
3. Scrambling/Blocking: Upon completion of the planned system upgrade to
860 MHz, Company shall at all times scramble both the audio and video
portions of all channels with predominately adult oriented programming.
3.1 Upon request by a subscriber, Company shall entirely block such
subscriber from receiving both the audio and video portion of any
channel with predominantly adult oriented programming with devices
19
such as a notch filter which prevent the frequencies contaInIng a
specific channel or channels from being transmitted into the
subscriber's premises.
4. Pay Per View: Subscribers shall be given the options of (a) not having pay per
view or per program service available at all or (b) only having such service
provided upon the subscriber providing a security number selected by an adult
representative of the subscriber.
5. Notification: Company shall provide written information on at least each of
the following matters (a) at the time of installation or reinstallation of service,
(b) annually to all subscribers, and (c) at any time upon request of a subscriber
or the City. The information shall be dated with the printing, revision, or
effective date.
5.1 Products and services offered.
5.2 Prices (rates) and options for Cable Services and conditions of
subscription to Cable Service. Prices shall include those for
programming, equipment rental, program guides, installation,
disconnection, processing charges for late payment and other fees
charged by Company.
5.3 Installation and service maintenance policies.
5.4 Instructions on how to use Cable Services, including procedures and
options for pay per view, premium channels and connection to a VCR.
5.5 Channel positions of programming carried on the cable system,
including a listing specific to the City showing the channel names and
numbers actually available to subscribers in the City.
5.6 Billing and complaint procedures with a notice for the subscriber to
initially contact Company with complaints and questions.
5.7 Applicable privacy requirements as set forth in the Franchise or
provided for by law.
20
5.8 The availability of lockout devices and the ability to have a channel
entirely blocked or trapped (Section 3.1).
5.9 The refunds and free service available for violations of Sections 10 and
12 and how to obtain same.
5.10 The procedure for resolving signal quality problems set forth in Section
20.2.
6. Notice of Changes: Subscribers and the City shall be notified of any changes
in rates, Cable Services or channel positions as soon as possible through
announcements on the cable system or in writing. Company will notify City
in advance of notifying subscribers and will make every effort to notify City
forth-five (45) days in advance of a change. Unless a longer time period is
required by applicable law or regulation, notice must be given to subscribers
a minimum of thirty (30) days in advance of such changes if the change is
within the control of Company and as soon as possible if not within the control
of Company. In addition, Company shall notify subscribers and the City thirty
(30) days in advance of any significant changes in the matters covered by the
preceding Section 5. Notifications provided pursuant to this Section shall be
dated with the printing, revision or effective date.
7. Telephone Service Standards:
7.1 Company shall have a local or toll-free telephone number available for
use by subscribers toll-free twenty-four (24) hours per day, seven (7)
days per week.
7.2 The local or toll-free numbers shall be listed, with appropriate
explanations, in the directory published by each local telephone
company and in any significant directories published by others.
7.3 Trained Company Representatives shall be available to respond to
subscriber telephone inquiries twenty-four (24) hours per day, seven (7)
days per week.
7.3.1 As to video service matters, the tenn "Trained Company
Representatives" shall mean employees of Company who have
the authority and capability while speaking with a subscriber to,
21
among other things, answer billing questions, adjust bills, and
schedule service and installation calls.
7.4 Under Nonnal Operating Conditions, telephone answer time by a
Trained Company Representative, including wait time, shall not exceed
thirty (30) seconds from when the connection is made. If the call needs
to be transferred, the time to complete the transfer time shall not exceed
thirty (30) seconds. These standards shall be met no less than ninety
percent (90%) of the time under Nonnal Operating Conditions,
measured on a quarterly basis.
7.5 Under Nonnal Operating Conditions, the subscriber shall receive a
busy signal less than three percent (3%) of the time, measured on a
quarterly basis.
8. Office/Home Delivery-Pick Up:
8.1 Company shall maintain a "virtual office" within the City consisting of
(a) a toll-free telephone number which all subscribers in the City can
access twenty-four (24) hours per day, seven (7) days per week to
register complaints or ask questions concerning Cable Service, billing
matters or the cable system, (b) one or more conveniently located bill
payment offices within the City (unless no location within the City is
available) where subscribers can pay their bills, and (c) delivery and
pickup by Company of converter boxes, remotes and similar Company-
provided customer premises equipment at no charge to subscribers
(excluding customer initiated disconnects).
9. Installation Standards: Under Nonnal Operating Conditions, installations
located up to one hundred fifty (150) aerial feet from the existing distribution
cable system shall be perfonned within seven (7) business days after an order
has been placed no less than ninety-five percent (95%) of the time, measured
on a quarterly basis.
10. Installations/Service Calls: The following shall apply to subscribers (current
or new) requesting installations or service:
22
10.1 Installations and service calls shall be available at a minimum from 8
AM to 7 PM Monday through Saturday. Company shall at the
subscriber's option either (1) schedule the subscriber to be the first call
of the day or last call of the day on a first come, first served basis, (2)
schedule the appointment for a date certain on a "call to meet" basis
where as the service technician finishes his/her prior task, the
technician calls the subscriber and arranges to meet the subscriber
shortly thereafter, or (3) establish an appointment window of no more
than three (3) hours with the subscriber (or adult representative of the
subscriber) or another appointment window mutually agreed upon
between the subscriber and Company.
10.2 Company shall respond to the request for service in accordance with the
option selected by the subscriber.
10.3 Company shall not cancel an appointment with a subscriber after 5 PM
on the business day prior to the scheduled appointment.
10.4 If Company's technician is running late for an appointment with a
subscriber and will not be able to keep the appointment as scheduled,
the subscriber shall promptly be contacted. The appointment shall be
rescheduled, as necessary, at a time which is convenient for the
subscriber.
10.5 In the event access to the subscriber's premises is not made available
to Company's technician when the technician arrives during the
established appointment window, the technician shall leave written
notification stating the time of arrival and requesting that Company be
contacted again to establish a new appointment window.
10.6 Notwithstanding the foregoing, if Company's technician or service
representative telephones the subscriber during or prior to the
appointment window and is advised that the technician will not be
given access to the subscriber's premises during the appointment
window, then the technician shall not be obliged to travel to the
subscriber's premises or to leave the written notification referred to
above, and the burden shall again be upon the subscriber (or adult
representative of the subscriber) to contact Company to arrange for a
new appointment.
23
10.7 Except as otherwise provided above, Company shall be deemed to have
responded to a service or installation request under the provisions of
this section when a technician arrives at the service location or is
advised by telephone no access will be given.
10.8 Company's service technician or service representative shall take
adequate time on each service call to address or correct the problem in
question.
10.9 In the event that Company ceases to provide the NCT A On-Time
Customer Service Guarantee (Exhibit B 1) a violation by Company of
the provisions of this Section 10 shall automatically entitle the
subscriber to one month of free basic service and (if currently
purchased by the subscriber) one month of free cable programming
service (as defined in 47 C.F.R. § 76.901).
10.10 Under Normal Operating Conditions, Company shall meet the
standards of Section 10.1 through 10.3 no less than ninety-five percent
(95%) of the time, measured on a quarterly basis.
11. Service Call Charges: No charge shall be made to the subscriber for any
service call relating to Company owned and Company maintained equipment
after the initial installation of Cable Service unless the problem giving rise to
the service request can be demonstrated by Company to have been:
11.1 Caused by negligence or malicious destruction of cable equipment by
the subscriber, or
11.2 A problem established as having been non-cable in origin.
12. Service Interruptions:
12.1 Under Normal Operating Conditions, Company shall meet the
standards of Sections 12.2 and 12.4 no less than ninety-five percent
(95%) of the time measured on a quarterly basis.
12.2 Under Normal Operating Conditions, Company shall begin working on
a Service Interruption promptly and in no event later than twenty-four
(24) hours after the interruption becomes known to Company.
12.3 "Service Interruption" means the loss of picture or sound on one or
more cable channels, affecting one or more subscribers.
24
12.4 Under Normal Operating Conditions, Company shall begin working on
subscriber complaints involving impairment or degradation of signal
quality (other than a Service Interruption) promptly and in no event
later than the next business day after the problem becomes known to
Company.
12.5 Company shall be deemed to have begun work under the provisions of
this section when a technician arrives at the service location.
12.6 Company shall provide affected subscribers, upon request by the City
or the subscriber, with one day's free service (equivalent to the service
they were receiving at the time of the interruption) for each day or
portion thereof of Service Interruption.
13. Log of Complaints: Company shall maintain a written log, or an equivalent
stored in computer memory and capable of access and reproduction in printed
form, of a random sampling of all cable-related customer Complaints within
the City that are referred to Company's Customer Care Group. Such log shall
be in form and substance acceptable to the City and at minimum list the date
and time of each such Complaint, identify the customer to the extent allowed
by law, and describe the nature of the Complaint and when and what actions
were taken by Company in response thereto. The log shall be organized by
City. The log shall be kept at Company's office in or near the City for a
period of at least two (2) years and shall be available for inspection during
regular business hours by the City upon request.
14. Bills: Company shall comply with the following on Cable Service billing:
14.1 Bills shall be issued monthly to each subscriber with a balance due or
change of service.
14.2 Bills shall be clear, concise and understandable. Bills shall be fully
itemized, with itemizations including, but not limited to, basic service,
cable programming service, premium service charges and equipment
charges. Bills shall also clearly delineate all activity during the billing
period, including optional charges, rebates, credits, and late charges.
14.3 Each bill shall prominently display Company's local or toll-free
telephone numbers available for use by subscribers. If a bill has more
than one portion (for example, one portion that is kept by the customer
and one portion that is sent to Company) the numbers shall prominently
25
appear on the front side of the portion of the bill retained by the
customer.
14.4 Company shall respond in writing to all written complaints from
subscribers regarding billing matters within thirty (30) days.
14.5 Company shall not disconnect a subscriber for failure to pay
legitimately contested charges during a billing dispute. However,
during a billing dispute Company may disconnect a subscriber for
failure to pay charges that are not contested.
14.6 The City shall be given thirty (30) days advance notice of any change
in the format of bills.
15. Refunds and Credits: Refund checks for Cable Service shall be issued
promptly, but no later than either:
15.1 The subscriber's next billing cycle following resolution of the request
or thirty (30) days, whichever is earlier, or
15.2 If service is terminated, 30 days after return of equipment owned by
Company or at the time of the next billing cycle, whichever is earlier.
15.3 Credits for Cable Service shall be issued no later than the subscriber's
next billing cycle following a determination that a credit is warranted.
16. Late Payment for Cable Service
16.1 Each bill shall specify on its face in a fashion emphasizing same (such
as bold face type, underlined type or a larger font): "For payments
received after [date] a $ processing fee for late payment may be
charged. "
16.2 No processing fees for late payment, however denominated, shall be
added to a subscriber's bill less than twenty-one (21) calendar days
after the mailing of the bill to the subscriber.
16.3 No processing fees for late payment, however denominated, shall be
added to a subscriber's bill by reason of delay in payment other than
those described in this Section 16. All such charges shall be separately
stated on the subscriber's bill and include the word "late" in the
description of them.
26
16.4 There have been negotiations in connection with this Acceptance
Agreement regarding the appropriate amount of fees that may be
charged for late payment. The parties have agreed to withdraw this
issue from consideration without prejudice to any claims and defenses.
17. Disconnection
17.1 Company shall not disconnect a subscriber for failure to pay until at
least forty-five (45) days have elapsed after the due date for payment
of the subscriber's bill and Company has provided at least ten (10) days
written notice separate from the monthly bill to the subscriber prior to
disconnection, specifying the effective date after which Cable Services
are subject to disconnection.
17.2 Company may disconnect a subscriber at any time if Company in good
faith believes that the subscriber has tampered with or abused
Company's equipment, that there is a signal leakage problem (or other
non-compliance with FCC rules or other standards which poses a risk
to lives or property) on the subscriber's premises, or that the subscriber
is or may be engaged in the theft of Cable Services.
17.3 Company shall promptly disconnect any subscriber who so requests
disconnection. No period of notice prior to requested tennination of
service shall be required of subscribers by Company. No charge shall
be imposed upon the subscriber for or related to disconnection or for
any Cable Service delivered after the effective date of the disconnect
request (unless there is a delay in returning Company equipment). If
the subscriber fails to specify an effective date for disconnection, the
effective date shall be deemed to be the day following the date the
disconnect request is received by Company provided that Company
equipment has been returned.
17.4 The tenn "disconnect" shall include customers who elect to cease
receiving Cable Service from Company and to receive Cable Service
or other multi-channel video service from another person or entity.
18. Truth In Advertising: Company's bills, advertising and communications to its
current or potential subscribers shall be truthful and shall not contain any false
or misleading statement. F or the purposes of the preceding, a statement is
false or misleading if it contains an untrue statement of any material fact or
omits to state a material fact necessary in order to make the statements made,
27
in the light of the circumstances under which they were made, not misleading.
19. Reports: Company shall provide reports to the City monthly (by the 15th
business day of the following month) and quarterly (by the 15th business day
of the following quarter) as follows:
19.1 The reports shall include the following fonns currently used by Charter
or otherwise in fonn and substance acceptable to the City, showing on
a consistent basis, fairly applied, Company's compliance with customer
service standards.
19.1.1 System Statistics Report, Exhibit B2, which covers customer
service matters.
19.1.2 Monthly Report of Service Calls by Reason, Exhibit B3, which
shall include an explanation of the categories of reported
reasons.
19.1.3 Monthly Outage Summary by Franchise, Exhibit B4.
19.1.4 Monthly Service Call Availability Analysis and Installation Call
Availability Analysis, Exhibit B5.
19.1.5 Monthly Customer Call Sample Report, Exhibit B6, both by
City and on an overall basis, showing the results of a random
sampling of customer complaints referred to Company's
Customer Care Group.
19.1.6 Monthly Call Center Perfonnance Report, Exhibit B7
(excluding the 2% "assumed" adjustment).
19.2 Such reports shall show Company's perfonnance excluding periods that
were not Nonnal Operating Conditions ("Abnonnal Operating
Conditions") and if Company contends any such conditions occurred
during the period in question, it shall also describe the nature and extent
of Abnonnal Operating Conditions and show Company's perfonnance
both including and excluding the time periods Company contends such
conditions were in effect.
28
19.3 At the City's request Company will provide additional information and
existing reports reasonably related to the measurement and evaluation
of Company's compliance with the customer service requirements of
the Franchise, the Acceptance Agreement, and this Exhibit B.
19.4 Reports of installations/service calls (Section 10) and service
interruptions (Section 12) shall report matters occurring within the City.
Telephone reports may be for a larger area than the City if Company
can demonstrate that it is, in fact, representative of the phone service
provided within the City, such as where a call center receives calls from
numerous municipalities with no ability to distinguish between or give
preference to calls from one area or City over another.
19.5 The City, by itself or in combination with other municipalities, reserves
the right to audit Company (or any Affiliate of Company) to verify the
accuracy of the reports required under this Section 19. All records
(including those of Affiliates) reasonably necessary to conduct the audit
shall be made available at a convenient location in the Fort Worth area.
If the audit discloses performance that is three (3) percentage points
worse than any of the standards of the referenced sections (such as
compliance 92% of the time versus 95% of the time) Company shall
pay the City's costs in connection with the audit within thirty (30) days
of submission of an invoice.
20. FCC Technical Standards: The following shall apply to Company's
implementation of and compliance with the rules and regulations relating to
cable television technical standards for signal quality, currently set forth at 47
C.F.R. § 76.601 and following, and subsequent amendments thereto:
20.1 Company shall notify the City in advance of testing for compliance
with FCC standards. The City may have a representative present to
observe such tests and may designate one location to be tested.
Company shall provide the City with a report of testing for compliance
with such standards upon written request (but not more than twice a
year). Such report to City shall state, in pertinent part, that the person
doing the testing has reviewed the applicable rules and regulations of
the FCC, the industry standards and other materials referenced therein,
and that such testing was done fairly and either shows full compliance
with such rules and regulations or sets forth with specificity and in
detail all areas of non-compliance, their actual or likely scope and
causes, and Company's professional recommendation of the best
29
corrective measures to immediately and permanently correct the non-
compliance.
20.2 Company shall establish the following procedure for resolving
complaints from subscribers about the quality of the television signal
delivered to them: All complaints shall go initially to Company. All
matters not resolved by Company shall at Company's or the
subscriber's option be referred to the City for it to resolve. All matters
not resolved by the City may be referred to the FCC for it to resolve.
20.3 The City at its expense (no more than twice per year, barring unusual
circumstances) upon thirty (30) days written notice to Company may
test the cable system for compliance with the FCC technical standards.
Company shall cooperate in such tests and provide access to the cable
system. Company shall reimburse the City for the full expense of any
test which shows a material non-compliance with such standards.
21. Liquidated Damages - Telephone Service. Installation. Service Calls:
Company acknowledges that non-compliance with the customer service
standards identified above will harm subscribers and the City and the amounts
of actual damages will be difficult or impossible to ascertain. For the second
calendar quarter of 1999 and thereafter, the City may therefore assess the
following liquidated damages against Company for non-compliance with the
customer service standards set forth in Sections 7.3, 7.4, 7.5, 9, 10.1, 10.2,
10.3, 10.10, 12.1, 12.2 and 12.4 (measured on a quarterly basis). Company
acknowledges that the liquidated damages set forth below are a reasonable
approximation of actual damages and that this Section 21 is intended to
provide compensation and is not a penalty.
21.1 Telephone Standards. The damages for non-compliance with one or
more of the standards in Sections 7.3, 7.4 and 7.5 during a calendar
quarter are:
21.1.1 First non-compliance: $1.00 per subscriber.
21.1.2 Second non-compliance within three (3) consecutive calendar
quarters: $2.00 per subscriber.
21.1.3 Third non-compliance within six (6) consecutive calendar
quarters and (subject to Section 21.4) each subsequent non-
compliance: $3.00 per subscriber.
30
21.2 Service and Installation Standards. The damages for non-compliance
with one or more of the standards in Sections 9, 10.1, 10.2, 10.3, 10.10,
12.1, 12.2 and 12.4 during a calendar quarter are:
21.2.1 First non-compliance: $1.00 per subscriber.
21.2.2 Second non-compliance within three (3) consecutive calendar
quarters: $2.00 per subscriber.
21.2.3 Third non-compliance within six (6) consecutive calendar
quarters and (subject to Section 21.4) each subsequent non-
compliance: $3.00 per subscriber.
21.3 Minimums. The liquidated damages for the first and each subsequent
non-compliance under Section 21.1 or Section 21.2 shall be no less than
$5,000, unless modified as provided in Section 21.4.
21.4 Effect of Extended Periods of Compliance. If Company complies with
all of the standards identified in Sections 21.1 and 21.2 for eight
consecutive calendar quarters, the damages for the first subsequent non-
compliance with any of those standards will be the greater of25¢ per
subscriber or $3,000.
21.4.1 Following such a non-compliance the damages provided in
Sections 21.1 and 21.2 will again be applicable so that the next
non-compliance within four (4) consecutive calendar quarters
will be subject to Sections 21.1.2 and/or 21.2.2.
21.5 An event of non-compliance will be taken into account in determining
whether a later event of non-compliance is a second, third or
subsequent event without regard to whether City has assessed
liquidated damages or taken any other action with respect to the non-
compliance.
21.6 Company shall report the number of subscribers within the City on the
last day of the quarter by the 15th business day of the following quarter.
22. Liquidated Damages - Other:
22.1 Liquidated damages in the amount set forth in Section 21.1.1 (but not
less than the amount set forth in Section 21.3) may be assessed for
failure to timely submit the quarterly reports required by Section 19.
31
22.2 Liquidated damages may be assessed for violation of the provision of
Section 26.4 for submission of reports within five (5) business days in
the amount of$l,OOO per day.
23. Procedure for Assessment of Liquidated Damages: The procedure for
consideration and assessment of liquidated damages is as follows:
23. I Liquidated damages shall be assessed by the City Manager or his or her
designee.
23.2 Company may obtain a review of the assessment by the City Council
by making a written request within ten (10) business days after receipt
of notice in writing of the assessment and its basis.
23.3 Company shall have an opportunity to be heard at a meeting of the City
Councilor by a person designated by the Council as a hearing officer
prior to action being taken by the Council.
23.4 The City Council may adopt additional procedures, including
appointment of a City official or other person to act as a hearing officer.
The Council's decision may be based upon the record of proceedings
conducted by the hearing officer or a proposal for decision submitted
by the hearing officer.
24. Payment of Liquidated Damages: Liquidated damages shall be paid on or
before the tenth (lOth) business day following assessment or, if Company
requests review by the City Council, on or before the tenth (10th) business day
following issuance of the Council's decision.
25. Ombudsman: Company will provide a senior employee (at the Vice President
or Director level) as director of government affairs and ombudsman reporting
directly to a regional vice president of CC Holdings. The director of
government affairs will have responsibility for working with the City and other
cities in the area to address problems that may arise under the Franchise and
shall be Company's ombudsman for both the City and subscribers. Company
will give the City an opportunity to comment on the detailed job description
of the director of government affairs before the position is filled.
26. City Liaison: Company shall continue to provide problem solving liaison
services for the City of the type being provided to the City of Fort Worth by
Charter's Customer Care Group in the Fall of 1998. The purpose of this
32
service is to provide the City with direct access to supervisory level personnel
who can obtain prompt action on customer service problems referred by the
City to Company. This service shall include at least the following:
26.1 The personnel providing the service shall be located in Tarrant County.
26.2 The personnel providing the service shall have sufficient authority and
access to Company facilities and personnel in order to investigate and
take appropriate remedial action without delay.
26.3 The City shall be given a special direct phone number to use (which
may also be used by other cities, but which will not be made available
to the general public) which will generally during nonnal business
hours be answered by a live person and will provide immediate access
to a person having the authority specified in the preceding section.
26.4 Company shall investigate (including an attempt to contact the
subscriber) and respond to the City on each call, fax or written
complaint or request by the end of the next business day and shall
provide a written report within five (5) business days.
26.5 Company shall give the City notice in writing of changes in the key
contact personnel or material changes in procedures involved in
providing this service.
27. Definitions: For the purposes of this Exhibit B, the following definitions shall
apply:
27.1 Cable Administrator means the person designated by City as having
principle responsibility for cable matters.
27.2 Complaint means a telephone call or written communication from a
customer notifying Company of a problem relating to Company's
billing or billing practices, Company's equipment, picture quality,
failure to receive one or more channels, a change in Company's
practice or policy, Company advertising or other business practice, the
conduct of a Company employee or contractor, or the failure of
Company or a service representative to comply with customer service
regulations.
27.3 Nonnal Operating Conditions means those selVice conditions which are
within the control of Company. Those conditions which are not within
33
the control of Company include, but are not limited to, natural disasters,
civil disturbances, power outages, telephone network outages, and
severe or unusual weather conditions. Those conditions which are
within the control of Company include, but are not limited to, special
promotions, pay-per-view events, rate increases, regular or seasonal
demand periods, changes in the billing cycle, changes in the form of
bills and other billing matters, changes in channel lineups or services
that are within Company's control, and repairs, rebuilds, maintenance
and upgrade of the cable system including computer software and
hardware.
27.3.1 Y2K. Y2K problems involving systems of Company, CC
Holdings, Vulcan, Charter or Affiliates of any of them are not
within the control of Company for purposes of measuring
compliance with customer service standards during the period
January 1,2000 through and including January 14,2000 but are
within the control of Company before and after that period of
time.
27.3.2 Labor Disputes. Employee strikes, slowdowns and walkouts of
less than 30 days duration are not within the control of
Company.
34
EXHIBIT B 1
~CHAR'T'ER
:~':.:'. .~ .-_....::'~. ..:.~~. . ::.... "',:. ':"'- ':':~. .., ".. '". .. .-. .'
'f·, ·~:étf~iMVN.i·c~?rtO:N·S.
On-Time Customer Service Guarantee ProPTam
Our On-Time Customer Service GuaTantee Program underscores our
commitment to providing our customers with the best service possible. This
program is not abo\.lt refunds; it is about making customer service a top
pTi ont)'.
Simply stated, we pledge the following,:
~ On-time instal1ation appointments or the installation of the primary
outlet is fi.-e~
,¡' On-time servic.e appointments or the customer receives Sì20
35
EXHIBIT B2
System Statistics for
Third Quarter 1999
Homes Passed
Customers
Penetration
.Installations
Pisconnects
\Net Gain
Technical Performance
Technical Service Calls
Technical Service Call Rate
Service Interruption Response < 24 hrs.
Servicé Call Availability for Next Business Day
_ Installation Schedules <7 days
. System Reliability
Telephone Performance
Calls Received
Calls Answered < 30 seconds
Percentage answered < 30 seconds (unadjusted)
Percentage answered < 30 seconds (adjusted) *
Reasons for adjustment: *
Ice storm
City power outage
Calls to City Referred to Charter
On-TIme Performance
Service calls - 95% next business day
installations - 95% within 7 business days
Service disruption - 95% within 2l. hours
Trained Company Representative
available to respond to telephone
inquiries 24 hrs/day. 7 days/~eek
Percentage calls receiving busy signal
Total outages reported
City,
11,719
4,937
42%
400
382
18
124
2.5%
98.7%
96.5%
99.()ok
99.927%
11 0, OJO
101,0J0
91.8%
93.7%
12/17/98
12/25/98
10
99.8%
98.7%
* Adjustments are for Abnormal Operating Conditions as
defined in Sections 19 _ 3 and 27 _ 3 of Exhibit B.
Acceptance Agreement _ 36
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EXHIBIT B4
Page 20f2
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EXI-UBIT B5
Page 1 of2
Service C-BIl.Å.Y.ailability Auatysis
Month of J.am1a~
Pate NònJi . - _. Soudl -- Southta1:e I
Availability AvaibbiUty T~)' Oub
'_"4'" .... ......
OlJOm9 ----....... -.-.-
0 0 0
o lA>2199 0 0 0
01J03199 0 0 0
01104199 0 0 0
01JOS})9 I I 1
01106199 0 0 0
01~7199 1 0 1
01108199 0 1 I
o 1A>9/99 0 0 0
01110199 0 0 0
01111/99 0 0 0
·01/12199 J 0 0
01113199 ) 0 0
01114199 1 0 0
01/15/99 0 0 0
01/16199 0 0 0
01/17/99 0 0 0
01/18199 0 0 0
Ot/19199 1 0 ()
01 fl0l99 0 0 0
01121199 0 1 0
0) 122199 0 0 1
01123199 0 0 0
01124/99 0 0 0
01125/99 0 0 0
Oln6l99 I 0 0
Olfl1J99 I 0 0
o 1f28199 0 I 0
01129/99 0 0 0
01130199 0 0 0
_Q1131199 0 0 0
Toea) 8 4 4
Standard 95% 95% 95%
--......- __n_·" .. __
IStandatd ~e{? _ .... .. -- n,_ ---.-------1
YES YES YES.
_.__. _..._.f
o ;: SAlvŒ DA Y < 12 Hrs
1 ~ N<:xt D.1I.Y
2 "" Two Days Out
40
--
EXIUBIT B5
Page 2 of2
J nsta 1I~.ion A v~n.~ÞJ.I.ü.Y_A.oaJy.sis
~fonth of
la.lm3!):
r-nît~-- ~~a~~~liïÿ'" I
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OlJOV)9
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01J04199
OtJUSI99
o IJ06f99
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01/10199
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01/21/99
01122199
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0]/24199
o U25I99
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01~9
01129199
01130199
01131/99
Total
Standard
IStandard Me.t?
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41
-- --
EXHIBIT B6
Customer Call Sample - January
Calls Sampled
.111
!~
~ ...__~_. .~~:r= of" Pðfcent~.I
.....-.-
Billl09- .~ ..-'---- ...--- . -~' "-21.6%'
Rêbu1ld 13 11.7%
Drop eunes 6 4.5%
Technical 3S 31.5%
Reception 3 2.7%
Property Damage 7 6.3%
Pay Pet View 3 2.1%
CoRecfions 4 3.6%
ConW'Uçtjon B 7.2%
I Programming .. 3.6%
OHome 2 1.8%
,'Installation 1 0.9%
Pedistal Problem 1 0.9%
L~ustomði_~duC3tlon ".___- . ._~.. . ..__-º..:~
L. __'__ TOTAL__, _~,~=~_ 11J --~'jÕ~·9W'-']
42
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Schedule 8.1.1
Character Generators
Company will provide Character Generators (CGs) as set forth below in accordance with
specifications provided by each City. Each City will reimburse Company for the amount by which
the cost of each CG exceeds $3,570. If the Cities agree on a different number ofCGs, Company's
share of the cost of each CG will be calculated by dividing the total number ofCGs into $75,000.
City
Number of Character Generators
Benbrook
Burleson
o
3
Crowley
Denton
o
2
Duncanville
Edgecliff Village
Everman
Forest Hill
Fort Worth
o
o
o
1
1
2
Haltom City
Hurst
Keller
Kennedale
Lake Worth
Mansfield
North Richland Hills
3
Saginaw
Southlake
Watauga
White Settlemen t
1
1
Total
21
44
EXHIBIT 17 TO ACCEPTANCE AGREEMENT
INSTITUTIONAL NETWORK SPECIFICATION
I. System Upgrade: As part of Company's upgrade of its Cable System,
Company intends to construct fiber optic cable between its headend and nodes.
It does not generally intend to replace the coaxial cable that runs from the node
to the residential or other subscriber.
2. This Section left blank.
3. This Section left blank.
4. Institutional Network Design.
4.1 Company shall install, activate and maintain on its upgraded Cable
System certain dedicated capacity to be referred to as the Institutional
Network (I-NET).
4.2 Company shall provide, either using existing fiber optic cable on the
upgraded Cable System or through the purchase and installation of
additional cable, sufficient optical fibers to interconnect each of the
designated I-NET sites.
4.3 The I-NET shall include a mInImUm of six (6) optical fibers
interconnecting each of the I-NET sites listed in Table 1 in a ring, star,
or hybrid network architecture approved by the City, in advance.
4.4 Company shall provide to the City a detailed architecture and design for
an I-NET overlaying the Cable System to connect to the designated I-
NET sites.
4.5 Within 30 days after receipt of the architecture and design for the I-
NET, the City shall respond to Company with approval or request for
re-design. If the City approves the architecture and design, the City
shall advise Company of the portions of the I-NET that the Company
shall construct, activate and connect in conjunction with the upgrade of
the Cable System. If the City does not find the architecture and design
satisfactory to meet the interconnection requirements, Company shall
revise the architecture and design based on the City's comments and
resubmit the architecture and design within 30 days. The preceding
procedure shall be repeated until agreement is reached.
45
5. Tennination Specifications: Company shall purchase and install tennination
hardware at each I-NET site listed in Table 1 and at a location therein
designated by the City, including standard connectors designated by the City,
appropriately labeled. Company shall tenninate the fibers on the tennination
hardware.
6. Network Equipment: User site equipment other than tennination hardware
shall be provided and maintained by the City for I-NET Users.
7. Completion of I-NET Construction: Company shall complete the construction
of the I-NET no later than
46
Table 1
City of North Richland Hills I-NET Site List
I - NET Number Location Address
1 City Hall Holiday Lane
2 Fire Station #1 Starnes Road
3 Fire Station #2 Rufe Snow
4 Fire Station #3 Davis Blvd.
5 NRH20 9001 Hwy. 26
: :ODMA \PCDOCS\GRR\263 728\ 1
47