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59 ORDINANCE NO. 59 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, GRANTING A NON-EXCLUSIVE FRANCHISE TO GROUP W CABLE, INC. , TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE TELEVISION SYSTEM IN THE CITY OF GRAND TERRACE AND SETTING FORTH CONDITIONS ACCOMPANYING THE GRANTING OF THE FRANCHISE. WHEREAS, the City of Grand Terrace, pursuant to Ordinance No. 49, adopted June 11, 1981, did declare its intention to award one or more non-exclusive revocable franchises to construct, operate, and maintain a Cable Television System within the City of Grand Terrace; and WHEREAS, the City of Grand Terrace has solicited applications for a Cable Television franchise on a competitive basis and, after due evaluation of the applications received and after public hearings, the City Council , by Resolution 82-03 adopted on January 25, 1982, found and determined that Telepromter of Southern California, Inc. , the best qualified applicant and was entitled to be awarded said franchise. WHEREAS, Teleprompter of Southern California, Inc., has undergone a merger and is now known as Group W Cable, Inc. ; and WHEREAS, Group W Cable, Inc. , agrees to abide by all commitments made to the City of Grand Terrace by Teleprompter of Southern California, Inc. ; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY ORDAIN the following terms and conditions of franchise in accordance with the provisions of Ordinance No. 49, and this Ordinance: Section 1. Index Section 2. Award of Franchise - Pg 2 Section 3. Definitions - pg. 3 Section 4. General Provisions - Pg. 7 Section 5. Rights Reserved to the City - Pg. 10 Section 6. Construction - Pg. 11 Section 7. Use of Streets - Pg. 14 Section 8. Rearrangement of Facilities - Pg. 16 Section 9. Service Requirements - Pg. 17 Section 10. Program Origination Facilities - Pg. 17 Section 11. Rates to Customers - Pg. 18 Section 12. Service, Operation, and Maintenance - Pg. 18 Section 13. Inspection and Reports - Pg. 21 Section 14. Evaluation Sessions - Pg. 21 Section 15. Remedies for Franchise Violations - Pg. 22 Section 16. Prohibited Activities - Pg. 23 Section 17. Rights of Individuals Protected - Pg. 23 Section 18. Termination - Pg. 24 Section 19. Right to Purchase System - Pg. 25 Section 20 Separability - Pg. 26 Section 21. Force Majeure; Grantee' s Inability to Perform - Pg. 26 Section 22 Effective Date - Pg. 26 Section 23 Posting - Pg. 26 Section 24 Adoption - Pg. 27 Approval of the City shall not be unreasonably withheld, provided that the proposed transferee passes the requisite financial and professional qualifications, is capable of performing all of the obligations hereof, and agrees, in writing, to comply with all provisions of this franchise agreement. i. The Grantee shall not cause or permit to become operative for any purpose any agreement, undertaking, lease, instrument, or other contractual arrangement between the Grantee and any person (other than as an employee) , firm, or corporation for the use by the Grantee of any property or facility or service of such person, firm, or corporation as part of a system of the Grantee, whether such property or facility be within or without the City or between the Grantee and any subscriber in the City unless and until the same shall have been first submitted in writing to the City and approved in writing by the City Attorney. j. The franchise may be renewed by the City upon application of the Grantee pursuant to the procedure established in this Ordinance and in accordance with the then applicable law. The Grantee shall submit its application for renewal , to include a proposal for services, at least fifteen (15) months prior to the date of expiration. The City shall schedule a public hearing on the question of renewal . After giving public notice, the City Council shall proceed to determine whether the Grantee has satisfactorily performed its obligations under the franchise. At such hearing, the Grantee shall have full due process of law including the opportunity to appear and be heard. If, based upon Grantee's performance during this franchise term, the Grantee's input and the public hearings the City Council finds a renewal of the franchise with the Grantee to be in the best public interest, the City Council may enter into a renewal of the franchise with the Grantee under such terms and conditions as it deems advisable to protect the public and the subscribers to the service. k. The franchise is for the present territorial limits of the City of Grand Terrace and for any area annexed thereto during the term of this franchise. Section 3. Definitions - For the purposes of this Ordinance, the following words, terms, phrases, and their derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular' number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. a. "City" means the City of Grand Terrace, California, and all the territory witNin its present and future corporate boundaries. b. "City Council " means the Council of the City of Grand Terrace or such representative person or entity as may be designated initially or at some future date to act on cable television matters. - 3 - m. "Leased Channel " or "Leased Access Channel " means any channel available for lease and programming y persons or entities other than the Grantee, including those portion of the other access channels not in use by their designated programmers. n. "Open Channel " means any channel that can be received by all subscribers without the necessity for special equipment. o. "Private Channel "or "Closed-Circuit Channel " means any channel which is available only to subscribers who are provided with special converter or terminal equipment to send or receive signals on that channel . p. "Converter" means an electronic device which converts signal carriers from one form to another. q. "Broadcast Signal" means a television or radio signal that is transmitted over-the-air to a wide geographic audience and is received by a Cable Television System, off-the-air, by microwave link, by satellite receiver, or by other means. r. "Non-Broadcast Signal " means a signal that is transmitted by a Cable Television System and that is not involved in an over-the-air broadcast transmission path. S. "Cablecast Signal" means a non-broadcast signal that originates within the facilities of the Cable Television System. t. "Basic Subscriber Television," "Basic Subscriber Services," or "Basic Service means the simu taneous elivery by the Grantee to all subscribers within the confines of the City of Grand Terrace. (1) All signals of over-the-air television broadcast required by the FCC to be carried by a community antenna television system as defined by the FCC or all those over-the-air signals which are received by the community without the aid of a Cable Television System or similar apparatus; and (2) Channels designated for special purposes by the Council or its designate; and (3) Public, educational , local government, local origination, and lease access channels signals; and (4) Additional service as proposed by the grantee in its application or as it may hereafter provide, provided, however, that pay or subscription television, as defined by the FCC and radio services supplied by the Grantee shall not be considered part of the basic Lservice. - 5 - (1) Subscribers or users in payment for television or FM radio signals, reception or service received within the City, whether said signals, reception, or service is included within the term "basic subscriber service" or if an additional or premium charge is collected for said signals, reception, or services including installation and line extension charges; (2) Any fees or income received by Grantee for carrying advertising or commercial messages over the CATV facilities; and (3) From any other person or utilization of or connection to the property of Grantee to the extent that he may from time to time legally impose a franchise payment on account thereof. Notwithstanding the above, gross annual receipts or gross revenue shall not include any taxes on services furnished by the Grantee and imposed directly on any subscriber or user by any city, state, or other governmental unit and collected by the Grantee for such governmental unit. ff. "Person" means any corporation, partnership, proprietorship, individual , or organization authorized to do business in the State of California, or any natural person. Section 4. General Provisions a. Grantee shall comply with the provisions of this Ordinance, Ordinance No. 49, and all offerings contained in Grantee's franchise proposal . In the event of any conflict, that provision which provides the greatest benefit to the City, in the opinion of the City Council , shall prevail . b. Following the issuance and acceptance of the franchise, the Grantee shall pay to the Grantor a franchise fee of three percent of all gross revenues derived from the operation of the Cable Television System. The Grantee shall pay an additional two (2) percent franchise fee assisting and supporting the City in its application for waiver of Federal Communications Commission Regulations Section 76.31. If at any time in the future Federal or State limitations on franchise fees are no longer in force, the City shall have the right to negotiate for such higher franchise fees as City deems necessary. Payments shall be completed and paid on a quarterly basis and due no later than thirty (30) days following the end of each calendar quarter. The Grantee shall file with the City, within thirty (30) days after the expiration of any calendar year or portion thereof during which such franchise is in force, a financial statement prepared by a certified public accountant, or person otherwise satisfactory to the City Council , showing in detail the gross annual receipts of Grantee during the preceding calendar year or portion thereof. - 7 - f. The Grantee, by the acceptance or use of this franchise, agrees to indemnify and save free and harmless the City, it officers, agents, and employees from and against any and all liability arising out of any and all claims, demands, causes of actions, or proceedings which may be asserted, prosecuted or established against them, or any of them for damage to persons or property of whatever nature arising out of the use by Grantee of the City streets or other City owned right-of-way (or of any other operations or activities of Grantee pursuant to this franchise) whether such damage shall be caused by negligence or otherwise (including but not limited to any liability for damages by reason of or arising out of any failure by Grantee to secure consents from the owners, authorized distributors, or licensees of programs to be delivered by Grantee's CATV system) and irrespective of the amount of the comprehensive liability insurance policy required hereunder, but, excepting therefrom, liability arising out of any claim, demand, cause of actions, or proceeding resulting from the sole negligence of the City, its officers, agents, or employees. g. Grantee, by the acceptance or use of this franchise, agrees to defend at its own cost and expense the City, its officers, agents, and employees against any and all claims, demands, actions, or proceedings brought against them, or any of them, in respect to the matters embraced by indemnity set forth above. h. Grantee shall have no recourse whatsoever against the City, its officers, agents, or employees for any loss, cost, expense, or damage arising out of any provision or requirement of this franchise or because of its enforcement. i . Upon the effective date of the franchise, Grantee shall furnish proof that a satisfactory liability insurance policy is in force in the minimum amounts of: Worker' s Compensation -- in accordance with California Law; Combined Single Limit General & Motor Vehicle Liability -- $1,000,000. The Worker' s Compensation and Liability Insurance Policies shall be maintained throughout the duration of the franchise, with the City named as additional insured. A copy of the insurance certificates shall be filed with the City, and the City shall be notified at least thirty (30) days prior to any cancellation of insurance. j. No privilege or exemption shall be granted or conferred by any franchise granted under this article except those specifically prescribed herein. k. Any privilege claimed under any such franchise by the Grantee in any street or other public property shall be subordinate to any prior lawful occupancy of the streets of other public property. - 9 - adjust, settle, or compromise and controversy or charge arising from the operations of any grantee under this Section, either on behalf of the City, the Grantee, or any subscriber, in the best interest of the public. This is not to include the settlement of disputes arising from the non-payment of fees. Either the Grantee or any member of the public who may be dissatisfied with the descisions of the City Manager may appeal the matter to the Council for hearing and determination. The Council may adjust, settle, or compromise any controversy or cancel any charge arising from the operations of any Grantee or from any provision of this Section. f. At the time of the granting of any franchise, the City Council shall establish or approve all basic rates and charges allowable to Grantee, including but not limited to all such rates and charges for installation of equipment and service charges including additional connections at one location. No such rates or charges shall be changed at any time after the granting of a franchise, except by authority of the Council and upon written request of the Grantee. g. Council will be kept informed of any changes in any and all rates including special programming not included in the above paragraph. h. One connection to the system shall be furnished free of charge in each public school in the area covered by the CATV franchise. The City Council may require similar free service to hospitals, fire stations, or other similar facilities operated by public or quasi-public agency. i . At all reasonable times, the Grantee shall permit any duly authorized representative of the City to examine all property of the Grantee, together with any appurtenant property of the Grantee situated within or without the City and to examine and transcribe any and all maps and other records kept or maintained by the Grantee or under its control which deal with the operations, affairs, transactions, or property of the Grantee with respect to its franchise. If any such maps or records are not kept in the City, or upon reasonable request made available in the City, and if the Council determines that an examination thereof is necessary or appropriate, then all travel and maintenance expense necessarily incurred in making such examination shall be paid by the Grantee. The Grantee shall prepare and furnish to the City Engineer and the Finance Officer, at the times and in the form prescribed by either of said officers, such reports with respect to its operations, affairs, transactions, or property as may be reasonably necessary or appropriate to the performance of any of the rights, functions, or duties of the City or any of its officers in connection with the franchise. The Grantee shall at all times make and keep in the City full and complete plans and records showing the exact location of all CATV system equipment installed or in use in streets and other public places in the City. Section 6. Construction - a. The Grantee shall meet or exceed all the material construction and service requirements set out in this franchise and in addition shall meet or exceed those material service requirements set out in - 11 - or was not reasonably foreseeable. The imposition by the City of any such penalties shall be in accordance with the procedures set forth in this Ordinance. (4) The City shall have the right to inspect all construction or installation work performed subject to the provisions of the franchise and to make such tests as it shall find necessary to ensure compliance with the terms of the franchise and other pertinent provisions of law. (5) Subject to the provisions of this Ordinance, the Grantee shall provide all residential services to all residents of the City at uniform installation charges and monthly rates. (6) Except as provided in Paragraph g and i herein, the Grantee shall construct or install its cables and other line facilities overhead utilizing the poles and other facilities of the Pacific Telephone and Telegraph Company, the General Telephone Company, the Southern California Edison Company. or any other telephone or electric power company operated and maintained pursuant to a State or City granted franchise and regulated as a public utility by the Public Utilities Commission of the State of California. The Grantee shall have the duty and burden of negotiating and obtaining pole lease agreements (utility joint use attachment agreements) from said companies. Copies of all such agreements shall be filed with the City Engineer. The Grantee shall not erect or cause to be erected any pole for the use of its Cable Television System without the written consent of the City Engineer. h. The Grantee shall not commence construction of any underground facilities under the provision of this franchise or add to such existing underground system, if any there be, until it first shall have obtained a construction-excavation permit therefor from the City Engineer. The application of the Grantee shall show the following facts: The length, depth, and proposed location of the underground facilities proposed to be laid or constructed; the size and description of the conduit intended to be used; and such other facts as the City Engineer may require. The Grantee shall pay any and all inspection and permit fees of the City. Any work undertaken by Grantee pursuant to this Ordinance and not completed in a timely manner or in accordance with conditions specified within City permits, the City may cause to be performed said works or projects at Grantee's expenses. (Reference Section 4, Paragraph d. ) i . The cables and appurtenances and equipment constructed, installed, or maintained under the provisions of this franchise shall be constructed, installed, and maintained in a workmanlike manner to the highest standard, within accepted engineering practice, of the cable television industry and in conformity with all ordinances, rules, or regulations now or hereafter adopted or prescribed by the City. - 13 - The Grantee shall not install or erect any facilities or apparatus in or on public property, places or rights-of-way, or within any privately owned area within the City which has not yet become a public street, but is designated or delineated as a proposed public street on any tentative subdivision map or master plan approved by the City, except those installed or erected upon public utility facilities now existing, without obtaining the prior written approval of the City Engineer. b. The Grantee shall be permitted to operate in the street to install , construct, maintain, or repair its lines and facilities, provided it first obtains a construction-excavation permit from the City Engineer setting forth the following provisions: (1) An agreed upon reasonable number of days within which said work is to be completed. If the Grantee keeps the street open for a period exceeding the time specified in the permit, the Grantee shall pay to the City the sum of Two Hundred Dollars ($200.00) per day as liquidated damages. The parties agree that this provision for liquidated damages is not in the nature of a penalty, but is assessed by the parties by reason of the inability of a judge or jury to determine the amount of compensation due the City in the event of such default; drk (2) In the case of construction, installation or repair of facilities, the location and manner of construction thereof as approved by the City Engineer acting in the exercise of his reasonable discretion; (3) That all street crossing (including roadway, parkway, sidewalk, and driveways) will be bored and that all pavements and concrete surfaces will be saw-cut, unless expressly waived by the City Engineer; (4) That as soon as such work is completed, all portions of the streets which have been excavated or otherwise damageded thereby shall be repaired and placed in as good condition as they were before the commencement of such work, to the satisfaction of the City Engineer. c. If any portion of any street shall be damaged by reason of the installation or existence of any facility constructed under this franchise, the Grantee thereof shall , at its own expense immediately following written or oral notification thereof, repair any such damage and put such street in as good condition as it was in before such damage, to the satisfaction of the City Engineer. d. Effect on Traffic - The work of constructing, maintaining, or repairing all cable conduits and other facilities and appurtenances of the Grantee shall be conducted with the least possible hindrance to the use of the streets for purposes of travel . 15 - e. In conformity with written notice from the City Engineer, the City shall have the right to require the Grantee to rearrange any part of the Grantee' s facilities for the accommodation of the City or of any water, electric, gas, or other utility system now or hereafter owned or operated by the City. Except as provided in Paragraph A of this Section 8, such rearrangement shall be at the City's expense. Section 9. Service Requirements a. The Grantee shall provide, as a minimum, the services listed in its franchise proposal . Services shall not be reduced without prior approval of the City Council . b. The Grantee shall construct a technically "up-to-date" Cable Television System with the capacity for 54 downstream channels and four upstream channels; 35 of the downstream video channels will be programmed initially. c. Basic Subscriber service shall include the FCC-required services, and all programming outlined in Section 3 of Grantee's proposal . d. Grantee shall provide the system capability to transmit an emergency alert signal to all participating subscribers. Grantee shall also provide an emergency audio message on all channels simultaneously in the event of disaster or public emergency. Awk e. Grantee shall provide standby power generating capacity at the cable communications system control center and at all hubs. Grantee shall maintain standby power system supplies, rated at least at four (4) hours duration, throughout the distribution networks. f. Grantee at no charge shall provide subscribers, upon request, with a parental control locking device or digital code that permits inhibiting the viewing of premium channels. g. Grantee shall provide an automatic status monitoring system. h. Frequency spectrum space shall be held in reserve for additional services, such as burglar, fire alarm and medical alert services. Section 10. Program Origination Facilities a. The Grantee, at its expense, shall provide equipment, staff, and technical service for video program origination in conformance to Section IV - Q 16 of the Grantee' s Proposal . b. The Grantee's obligations for video program origination shall be in force for the entire term of this franchise. c. The parties shall negotiate in good faith the timing of delivery of services at the request of either party. - 17 - c. In the event the Grantee fails to operate the system for AWN four (4) consecutive days without prior approval of the City or without just cause, the City may, at its option, operate the system or designate an operator until such time as the Grantee restores service under conditions acceptable to the City or a permanent operator is selected. If the City is required to fulfill this obligation for the Grantee, the Grantee shall reimburse the City for all reasonable costs or damages in excess of revenues from the system received by the City that are the result of the Grantee' s failure to perform. d. The Grantee shall maintain the CATV system to the highest practicable performance standards within the cable television industry. Grantee shall provide a fully equipped service organization with adequate staff and facilities for maintenance of its CATV system and for furnishing service to its customers and prospective custormers. e. The Grantee shall maintain a set of operating instructions, circuit diagrams, technical manuals, and bulletins necessary for the proper operation and maintenance of the CATV system. Copes thereof shall be available to the City. f. The Grantee shall not refuse service to any resident whose property is adjacent to a public right-of-way in which a cable is laid or strung, unless: (1) Access thereto is unavailable; or (2) The subscriber has not paid the applicable connection fee or monthly service charge. g. During the term of this franchise and any renewal thereof, the Grantee shall maintain within the City a local business office or agent for the purpose of receiving and resolving all complaints regarding the quality of service, equipment, malfunctions, and similar matters. The local office shall be open to receive inquiries or complaints from subscribers during normal business hours, and in no event less than 9:00 a.m. to 5:00 p.m., Monday through Friday, excluding legal holidays. The Grantee shall provide the means to accept complaint calls twenty-four (24) hours a day, seven (7) days a week. Inquiries and complaint calls shall be accepted in person between 9:00 a.m. and 5:00 p.m., seven (7) days a week. h. Any service complaint from subscribers shall be investigated and acted upon as soon as possible. Any service complaint shall be resolved within three (3) calendar days. The Grantee shall credit a subscriber' s account on a pro-rata basis for loss of service commencing forty-eight (48) hours after notification. i . The Grantee shall keep a maintenance service log which will indicate the nature of each service complaint, its location, the date and time it was received, the disposition of said complaint, and the time and date thereof. This log shall be made available for periodic inspection by the A City. - 19 - Section 13. Inspection and Reports a. At all reasonable time, the Grantee shall permit any duly authorized representative of the City to examine all property of the Grantee, together with any appurtenant property of the Grantee situated within or without the City, and to examine and transcribe any and all maps and other records kept or maintained by the Grantee or under its control which deal with the operations, affairs, transactions, or property of the Grantee with respect to its franchise. If any such maps or records are not kept in the City, or upon reasonable request made available in the City, and if the Council shall determine that an examination thereof is necessary or appropriate, then all travel and maintenance expenses necessarily incurred in making such examination shall be paid by the Grantee. b. The Grantee shall file annually with the City Clerk, not later than sixty (60) days after the end of Grantee's fiscal year, a copy of its report to its stockholders (if it prepares such a report) , an income statement applicable to its operations during the preceding twelve (12) month period, a balance sheet, and a statement of its properties devoted to CATV operations, by categories, giving its investment in such properties on the basis of original cost less applicable depreciation. These reports shall be prepared or approved by a certified public accountant or certified as to correctness by an officer of the Grantee. There shall be submitted along with them such other reasonable information as the City Manager shall request with respect to Grantee' s properties and expenses related to its CATV operation within the City. c. The Grantee shall file with the City Clerk a copy of every report involving its Grand Terrace Cable Television System made to the FCC as well , as a copy of every such report made to any State agency which in the future may regulate such system. d. The Grantee shall prepare and furnish to the City Manager, at the times and in the form that he prescribes, such reports with respect to its operation, affairs, transactions, or property as he determines may be reasonable necessary or appropriate for the protection of the rights of the City hereunder. Section 14. Evaluation Sessions a. The City and the Grantee shall hold scheduled evaluation sessions with thirty (30) days of the third, sixth, ninth, and twelfth anniversary dates of the granting of this franchise. All such evaluation sessions shall be open to the public and advertised in a newspaper of local circulation at least five (5) days before each session. The sessions shall be held at such place, date, and time and before such body or officer as the City shall determine. The purpose of the sessions shall be to evaluate the performance of the Grantee in fulfilling its obligation under this franchise and the quality of its service to the public. Subject for discussion may include, but shall not be limited to, service rate structure, free or discounted service, application of new technologies, system performance, - 21 - Section 16. Prohibited Activities a. Whenever, pursuant to the franchise, Grantee shall make available for inspection by the City or submit to City reports containing information considered proprietary by the Grantee, City shall not disclose or release such reports or information to the public without Grantee's prior written consent. Section 17. Rights of Individuals Protected a. The Grantee shall not deny service, deny access, or otherwise discriminate against subscribers, programmers, or general citizens on the basis of race, color, religion, national origin, sex, or age. The Grantee shall adhere to the equal employment opportunity requirements of the Federal Government, as expressed in Section 76.13(a) (8) and 76.311 of Chapter 1 of Title 47 of the Code of Federal Regulations. The Grantee shall comply at all times with all other applicable Federal , State, and City laws, and all executive and administrative orders relating to non-discrimination. b. Neither the Grantee nor any person, agency, or entity shall , without the subscriber' s consent, tap, or arrange for the tapping, of any cable, line, signal input device, or subscriber outlet or receiver for any purpose except routine maintenance of the system, polling with audience participation, or audience viewing surveys to support advertising research regarding viewers where individual viewer behavior cannot be identified. c. In the conduct of providing its services or pursuit of any collateral commercial enterprise resulting therefrom, Grantee shall take any and all necessary action to prevent an invasion of a subscriber' s or general citizen's right to privacy or other personal rights as such rights are delimited and defined by applicable law. Grantee shall not without lawful court order or other applicable valid legal authority utilize the system's interactive two-way equipment or capability for unauthorized personal surveillance of any subscriber or general citizen. d. No cable line, wire, amplifier, converter, or other piece of equipment owned by Grantee shall be installed by Grantee without first securing the written permission of the owner of any property involved or subscriber occupying said property; provided, however, that where the property owner has granted an easement or a servitude to another and the servitude by its terms contemplates uses such as the Grantee intended use, Grantee shall not be required to secure the written permission of the owner or subscriber occupying said property for the installation of cable television equipment or facilities unless Grantee elects to do so. If permission is later revoked, whether by the original or a subsequent owner, the Grantee shall remove forthwith any of its equipment which is visible and movable and promptly restore the property to its original condition. e. The Grantee shall not sell or otherwise make available lists of the names and addresses of subscribers, or any list which identifies, by name, subscriber viewing habits, or personalized data pertaining to a subscriber's use of any of Grantee's services without the consent, express or implied, of the subscriber to which the personalized data pertains. For - 23 - Grantee of such noncompliance from the City, the City may hold a public hearing to consider the option of revocation of the franchise. The City shall give the Grantee at least ten (10) days advance written notice of such hearing and shall also publish such notice in advance in a newpaper with local circulation. If, after such hearing, at which Gratee shall be afforded all due process of law including the right to appear and be heard, the City shall determine that the franchise should be revoked, City must advise the Grantee of its decision in writing and may by ordinance declare a forfeiture, whereupon all rights of the holders of the franchise shall immediately be divested without a further act upon the part of the City, and the Grantee shall forthwith remove its structure or property from the streets and restore the streets to such condition as the City may reasonably require, and, upon failure to do so, the City may perform the work and collect the cost thereof from the Grantee. The cost thereof shall be a lien upon all plant and property of the Grantee. Such lien shall not attach to property of Grantee located on the poles or other utilities until removal of such property from pole. b. The City shall have the right to revoke the franchise one hundred and twenty (120) days after the appointment of a receiver, or trustee, to take over and conduct the business of the Grantee, whether in receivership, reorganization, bankruptcy, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred and twenty (120) days, or unless: (1) Within one hundred and twenty (120) days after his election or appointment, such receiver or trustee shall have fully complied with all the provisions of the franchise and remedied all defaults thereunder; and (2) Such receiver or trustee, within said one hundred and twenty (120) days, shall have executed an agreement, duly approved by the court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of the franchise. c. Upon expiration of the initial term of the franchise and consistent with Section 2, Paragraph j, herein, the City shall have the right, at its election, to: (1) Renew or extend the franchise; (2) Invite additional franchise applications or proposals; or (3) Terminate the franchise without further action. Section 19. Right to Purchase System - The City may in any lawful manner and upon the payment of a fair valuation lawfully ascertain, purchase, condemn, acquire, take over, and hold the the property and plant of the Grantee whole or in part; if such purchase or taking over be upon revocation - 25 - Section 24 First introduced and read at a regular meeting of the City Council of said City held on the 22nd day of April , 1982, and finally adopted and ordered posted at a regular meeting of said City Council on the 13th day of May, 1982. ATTEST: City C rk of the City of and Mayor +O.'u Gran err Terrec and of the City uncil and of th it thereof. thereof. Approved as to form: Ci Attorney - 27 - STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss. CITY OF GRAND TERRACE ) I, MYRNA ERWAY, City Clerk of the City of Grand Terrace, DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the City Council of said City at a regular meeting of the City Council held on the 13th day of May, 1982, and that it was so adopted by the following vote: AYES: Councilmen Rigley, Petta, Nix; Mayor Grant. NOES: None. ABSENT: Councilwoman Pfennighausen. City C er of the City of Gra Terrace and of th City Council therelLff. STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss. CITY OF GRAND TERRACE ) I, MYRNA ERWAY, City Clerk of the City of Grand Terrace, DO HEREBY CERTIFY that the above and foregoing is a full , true, and correct copy of Ordinance No. 59 of said City, and that the same has not been amended or repealed. DATED: May 13th, 1982. City OOrk of the City of and Terrace and o the City Council Wereof.