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HomeMy WebLinkAboutOrd 3120 06/02/1981 RDINANCE NO. 3120 AN O~-~DINAN~ AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF MOUNT PROSPECT TO ADD THERETO A NEW CHAPTER 6 ENTITLED "CABLE COMMUNICATIONS CODE" PERTAINING TO THE FRANCHISE AND OPERATION OF A CABLE TELEVISION SYSTEM WITHIN THE VILLAGE OP MOUNT PROSPECT, ILLINOIS WHEREAS, the Village of Mount Prospect has participated in many 'studies relative to entering into a franchise agreement for the purpose of providing a cable television service within the Village; and WHEREAS, the Village of Mount Prospect has conducted hearings in an effort to ascertain the needs and desires of the residents of the Village, as well as the various agencies that could benefit from such a cable television system; and WHEREAS, the President and the Board of Trustees of the Village of Mount Prospect have determined that such a cable television system would be a benefit to the community. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: Pursuant to ~e authority vested in the President and Board of Trustees of the Village o[ Mount Prospect under Article VII of the 1970 Constitution of the State of Illinois, the Municipal Code of the Village of Mount Prospect of 1957, as amended, be and the same is hereby further amended by deleting the word "Reserved" from said Chapter 6 and st/bstituting therefor a new Chapter to be entitled "CABLE COMMUNICATIONS CODE" and to read as follows: HAPTER 6 ARTICLE I ARTICLE I: CABLE COMMUNICATIONS CODE SECTION 6.101 SHORT TITLE. This Chapter shall be known as ihe Village of Mount Prospect Cable Communications Chapter. SECTION 6.102 PURPOSES. The purpose oflthis,Chapter is to: Ao Provide for ~zhe franchising and regulation of cable television s~stems within the Village of Mount Prospect, and Provide for l~he payment of a fee and other valuable consideratio~ to the Village of Mount-~Prospect for the use of Village streets and other public ways in the co?nstruction and operation of cable television systems, and to compem~sate the Village of Mount Prospect for costs associated therewith; and Co Provide for the regulation by the Village of ~fount Prospect of tlhe rates and fees to be charged by Grantees under this Ch.~pter and P]3ovide for the development of cable television as a m~ans to improve communication between and among the citizens and public institutions of the Village of Mount Prospects, and Provide remedie:s and prescribe penalties for violation of this Chapte~ and the franchises granted hereunder. RTICLE II: DEFINITIONS SECTION 6~201. DEFINITIONS. For the purpose of this Chapter, the following terms, phrases, words and their derivations shall have the meaning given herein, unless the context clearly indicat~es that another meaning is intended. ~men not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and word,s in the singular number include the plural number. The word "shall" is always mandatory and not merely direc~tory. Ao B o Co go Fo "Agency" means the person, depar~zment or agency designated by the Village of Mount Prospect to act in matters related to cable television or i~ fhe a~sence of such designation, the President and Board of Trustees of the Village of Mount-Prospect. "Auxiliary Services" means any cc,mmunication service in addition to "regular subscriber s~ervices" including, but not limited to services for ~rhich a per program or per channel charge is made, pay RTV, burglar alarm services, data or other electronic transmission services, facsimile reproduction services, meter reading services, home shopping services, interactive two-way services and any other service utilizing ~ny facility or equipment of a cable television system ope~ating pursuant to a franchise granted under this Chapter. "Board" means the President and Board of Tru~stees of the Village of Mount Prospect. "Cable Television System" (or C~%TV system) m~ans any non-broadcast facility consisti~g of a set of transmission paths and associated signal gen~ration, reception, and control equipment, that distrib~tes or is designed to distribute to subscribers audio, video and other forms of electronic or electrical signals, but such term shall not include any such facility that serves or will serve only subscribers in one or more multiple unit dwellings under common ownership, control or management, and does not use municipal right.s-of-way. "Channel" is a band of frequenci~s, six megahertz wide in the electro-magnetic spectrum capable of carrying either one video signal and a fev~ non-video sign~ats, or a large number of nonvideo signals. "Converter" means an electronic device provided by a Grantee which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber, and by an appropriate clhannel selector also permits a subscriber to view all signals delivered at designated dial locations. .201 G. CABLE COMMUNICATIONS 6.20i "Depreciated Replacement Value" means an amount to be determined Which re~§~t~ the cost to duplicate or replace or reconstruct all the tangible assets, as built, less deductions for depreciation (straight line method) representing the actual period in which such facilities have been in place in the Village of Mount Prospect, compared, to the estimated useful life of such tangible assets. This estimate would be performed by a qualified and nationally recognized consulting engineer, expert in matters of cable television management and financing. Ho "Fair Market Value" means the price that a willing buyer would pay to a willing seller for a going concern based on the system valuation and sale multiples prevailing in the industry. "Federal ComMunications Commission" or "FCC" means the present federal agency of that name as constituted by the Communication Act of 1934, or any successor agency created by the United States Congress. Jo "Franchise" means the non-exclusive rights granted hereunder, or as described in a Franchise Agreement entered into between the Village of Mount Prospect and a Grantee, to construct and operate a cable television system along the public ways in the Village of Mount Prospect, or within s~ecified areas in the Village of Mount Prospect~ and is not intended to include any license or permit required for the privilege of transacting and carrying on a business within the Village of Mount Prospect as may be required by other ordinance and laws of the Village of Mount Prospect. "Franchise Area" means that portion of the Village of Mount Prospect for which a franchise is granted under the authority of this Chapter. If not otherwise stated in the franchise, the Franchise Area shall be the corporate limits of the Village of Mount Prospect including all territory thereafter annexed to the Village of Mount Prospect. "Grantee" means the natural person, partnership, domestic or foreign corporation, association, joint venture, or organization of any kind granted a franchise by the Village of Mount Prospect under this Chapter and its lawful successor, transferee or assignee. "Gross Revenues" means all revenue, derived directly or indirectly, excluding interest income, by the Grantee, its affiliates, subsidiaries, parents, and any person in which the Grantee has a financial interest, from the operation or use of all or part of a Cable Television System franchised pursuant to this Chapter, including . 201 CABLE COMMUNICATIONS 6. 201 but not limited to~ revenue from regular subscriber service fees, auxiliary service fees, installation and reconnection fees, leased channel fees, converner rentals, studio rental, production equipment and personnel fees, and advertising revenues: Provided, however, that this shall not include any taxes on services furnished'by the Grantee herein imposed directly upon any subscriber or user by the State, local or other governmental unit and collected by the Grantee on behalf of said governmental unit. No "Persons" means any people, firms, corporations, associations or other legally recognized entities. "Public Way" means the surface, the~ air space above the surface, and the area below the surface of any public street, highway, lane, path, alley, sidewalk, boulevard, drive, bridge, conduit, tunnel, park, parkways, waterways, utility easements or other public right-of-way or hereafter held by the Village of Mount Prospect which shall entitle the Village of Mount Prospect and the Grantee to the use thereof for the purpose of installing and maintaining the Grantee's cable television system. No reference herein, or in any franchise, to the "public way" shall be deemed to be a representation or guarantee by the Village of Mount Prospect that its title to any property is sufficient to permit its use for such purpose, and the Grantee shall, by its use of such terms, be deemed to gain 0nly such rights to use property in the Village of Mount Prospect as the Village of Mount Prospect may have the undisputed right and power to give. Po "Regula~ Subscriber Service" shall mean the distribution to subscribers of signals over the cable television system on all channels except those for which a per- program or per-channel charge is made, two-way services, and those intended for reception by equipment other than a television broadcast receiver~ "Schools" means all public, and private, elementary and secondary schools, junior colleges, colleges and universities which have been granted a certificate of recognition by the Illinois State Board of Education, pursuant to Section 2-3.25 of the Illinois School Code. Ro "Subscriber" means any person who receives the regular subscriber service and/or any one or more of such other services as may be provided by the Grantee's cable television system, and does not further distribute such service(s). .201 CABLE COb~NICATIONS 6.201 So "Two-way Service" means the subscriber or any other location shall have the capability no choose whether or not to respond immediately or by sequential delay by utilizing any type of terminal equipment wbatever, by pushbutton coder dial code, meter, voice, video including, but not'limited to, audio and video, electrical or mechanically produced signal, display and/or interrogation. "User" means a person or organization utilizing a system channel or system equipment and facilities for purposes of production and/or transmission of material, as contrasted with receipt thereof in a subscriber capacity. · RTICLE III: AUTHORITY SECTION 6.301 REQUIREMENT OF A FRANCHISE. No person, firm, company~ corporation or association ~half' construct, install, maintain or operate'a cable television system within the Village of Mount Prospeqt, or within any other public property of the Village of Mount Prospect, unless a franchise has first been obtained pursuant to the provisions of this Chapter, and unless such franchise is in full force and effect. Such franchise shall not take the place of any other license or permit which may be legally required of the Grantee in order to conduct such a business. SECTION 6.302 FRANCHISE APPLICATIONS After receiving applications for a franchise, the Board, after considering financial, technical, programming, and rate proposals, and the legal and character qualifications of the applicants, may, by ordinance, grant one or more nonexctusive franchises creating a right to construct and operate a cable television system within the public ways of the Village of Mount Prospect. Franchise(s) will be granted to the applicant(s) which in the Board's judgement may best serve the public interest; provided, however, no provision of this Chapter shall be deemed or construed as to require the Board to grant a franchise. The application for a cable television franchise shall be submitted to the Village of Mount Prospect, or its designee, on a written application form furnished by the Village of Mount Prospect, and in accordance with procedures and schedules to be established by the Village of Mount Prospect. The application form may request facts and information the Village of Mount Prospect deems appropriate. Applications shall be accompanied by a non-refundable application fee in an amount determined by the Village of Mount Prospect, which amount shall be used by the Village of Mount Prospect, to offset direct expenses incurred in the franchising and evaluation procedures, including, but not limited to, staff time and consulting assistance. Co An applicant (Grantee) to whom the Village of Mount Prospect grants a non-exclusive franchise shall, in addition to the non-refundable fee specified hereinabove, pay to the Village of Mount Prospect at the time the Grantee files the written instrument specified in Section 6.709 an amount determined by the Board to be used to offset all direct, reasonable expenses actually incurred by the Village of Mount Prospect in granting the franchise which are not defrayed by fees forthcoming from the provisions of Paragraph B of this Section. RTICLE IV: FRANCHISE CONDITIONS SECTION 6.401 FRANCHISE TERM AND NON-EXCLUSIVITY. The term ~'f an original franchise shall be no more than fifteen (15) years from the date the~franchise is accepted by the Grantee. The term of a renewed franchise shall be no more than fifteen (15) years. No franchise granted pursuant to this Chapter shall give any exclusive right to a Grantee and every such franchise shall be deemed to reserve the right to grant other franchises to use and occupy the public ways of the Village of Mount Prospect for cable television or any other purpose on such terms as the Village of Mount Prospect may then deem appropriate. SECTION 6.402 NOTICE TO THE GRANTEE. Except as provided in Section 6.404A of this Chapter 6 the Village of Mount Prospect shall not take any final action involving the evaluation, modification, renewal, revocation or termination of the Grantee's franchise unless the Village of Mount Prospect has (1) called a meeting for such purpose, (2) advised the Grantee in writing, at least thirty (30) ~days prior to such meeting, as to its time, place and purpose and (3) published a notice, at least once, ten (10) days before the meeting in a newspaper of general circulation within the Village of Mount Prospect. The Grantee and any interested person shall be entitled to be heard at such meeting. SECTION 6.403 FRANCHISE REVIEW AND MODIFICATION. It shall be the policy of the' Village of Mount Prospect to amend a franchise, upon application of the Grantee, when necessary to enable the Grantee to take advantage of technological advancements which will afford ~it an opportunity to more effectively, efficiently, or economically serve its subscribers; provided, however, that this Section shall not be construed to require the Village of Mount Prospect to make any amendment. Further, within the term of the franchise, the Village of Mount Prospect may after notice and hearing as required in Section 6.402, adopt a resolution providing for reasonable and appropriate modifications in Grantee's franchise of a nature that would not result in effectively terminating same, provided that the Village of Mount Prospect shall not make any amendments or modifications to this Chapter or a franchise granted hereunder which would alter the provisions of Sections 6.405D or 6.406E during during the term of any franchise granted hereunder. ABLE COMMUNICATIONS SECTION 6.404 .PERFORMANCE EVALUATION SESSIONS Co The Village of Mount Prospect and the Grantee shall hold performance evaluation meetings within thirty (30) days of the third,-fifth, tenth and fourteenth anniversary dates of the Grantee's award of the franchise and as required by federal and state law. Ail such evaluation meetings shall be open to the public. Grantee shall be solely responsible for notifying the Village of Mount Prospect, in writing, at least sixty (60) days in advance, of each of the specified performance evaluation meetings, and no notice to the Grantee pursuant to Section 6.402 shall be required. Special evaluation meetings may be held at any time during the term of the franchise at the request of the Agency or the Grantee. Ail evaluation meetings shall be open to the public and announced by the Board in a newspaper of general circulation in accordance with the notice requirements of Section 6.402 above. No such newspaper notice shall be required as to any adjourned meetings. Grantee shall notify subscribers of all evaluation meetings including any adjourned meetings by announcement on the highest use origination channel on the system no less than three (3) times between the hours of 7 o'clock p.m. and 9 o'clock p.m. for five (5) consecutive days immediately preceding each meeting. Topics which may be discussed at any scheduled or special evaluation session may include, but not be limited to, service rate structures, franchise fees, penalties, free or discounted services, applications of new technologies, system performance, services provided, programming offered, customer complaints, privacy, amendments to this ordinance, modification to the franchise, judicial and FCC rulings, line extension policies and Grantee or Village of Mount Prospect rules. During a review and evaluation by the Village of Mount Prospect, the Grantee shall fully cooperate with the Village of Mount Prospect and shall provide such information and documents as the Village of Mount Prospect may request to reasonably perform its review. .404~ ~ CABLE COM>~UNICATIONS 6.405 Go If at any time during its review,.the Village of Mount Prospect determines that reasonable evidence exists of inadequate CATV system performance, it may require the Grantee to perform tests and analysis directed toward the suspected inadequacies. The Grantee shall fully cooperate with the Village of Mount Prospect in performing such testing and shall prepare results and a report if requested within thirty (30) days after notice. Such report shall include the following information: 1. The nature of the complaint or problem which precipitated the special tests; 2. What system component was tested; 3. The equipment used and procedures employed in testing; 4. The method, if any, in which such complaint or problem was resolved. 5. Any other information pertinent to said tests and analysis which may be required. o The Village of Mount Prospect may require the test to be supervised at Grantee's expense by a professional engineer to be approved by the Village of Mount Prospect not on the permanent staff of the Grantee. The engineer should sign all records of special tests and forward to the Village of Mount Prospect such records with a report interpreting the results of the test and recommending actions to be taken. The Village of Mount Prospect rights under this Section shall be limited to requiring tests, analysis and reports covering specific Subjects and characteristics based on said complaints or other evidence when and under such circumstances as the Village of Mount Prospect has reasonable grounds to believe that the complaints or other evidence require that tests be performed to protect the public against substandard cable service. SECTION 6.405 FRANCHISE RENEWAL Ao The Grantee shall be solely responsible for requesting the Village of Mount Prospect, in writing, to hold a special meeting, the purpose of which will be to review the Grantee's performance during the term of its franchise, to consider the adequacy of the franchise from the standpoint of the Village of Mount Prospect, the Grantee, and the Federal Communications Commission Rules for Cable Television, and to determine the advisability of renewing the Grantee's franchise. ABLE COMMUNICATIONS ~_~- 6.405, Bo C~ Eo Unless the Village of Mount Prospect shall consent to some lesser notice, said request shall be made not less than twelve (12) months prior to the franchise expiration date. Upon receipt- of said request, the Village of Mount Prospect shall adopt a resolution setting forth the time and place of the special meeting. If no request for renewal is made, the franchise shall expire according to its terms, provided, however, that the Board may extend the term of the franchise in six (6) month increments during the franchise renewal process provided for in this Section. The Village of Mount Prospect shall'hear' any interested persons during said special meeting and shall determine whether or not the Grantee did reasonably comply with the terms and conditions imposed by this Chapter and the franchise. Notice of such meeting shall be given in accordance with Section 6.402 and Section 6.404C above. If the Village of Mount Prospect determines that the Grantee has been in reasonable compliance with the terms and conditions imposed by this Chapter and the franchise, the Village of Mount Prospect may, by resolution, renew the Grantee's franchise, with any modifications it deems desirable, for a period of time not longer than fifteen (15) years. Notwithstanding the fact that the Board may determine that the Grantee has been in reasonable compliance With the terms and conditions imposed by this Chapter and the franchise, the Board shall have the right not to renew the franchise. If the Board does not renew the franchise, the Board shall, to the extent then permitted by existing law~ have the options to: Acquire at fair market value all the assets of the Grantee's operations within the Village; or require the sale at fair market value of all such assets to a succeeding Grantee; or require the removal of all such assets from the Village. Except as provided in Section 6.408, the Board's above- stated options must be exercised within one (1) year from the date of the franchise expiration, unless such period is extended with the consent of the Grantee, The Village of Mount Prospect shall have the right to recoup from the Grantee all direct expenses incurred pursuant to renewal of the franchise whether or not the franchise is renewed. 406f · CABLE COM>~UNICATIONS 6.406 SECTION 6.406 FRANCHISE REVOCATION PROCEDURE Bo Co Do Whenever a Grantee shall refuse, neglect or willfully fail to construct, operate or maintain its cable television system or to provide service to its subscribers in substantial accordance with the terms of this Chapter and the franchise or to comply with the conditions of occupancy of any public way or to make required extensions of service, or shall in any other way substantially violate the terms and conditions of this Chapter, the franchise, or any applicable rule or regulations, or practices any fraud or deceit upon the Village of Mount Prospect or its subscribers, or fails to pay franchise fees when due, or if a Grantee becomes insolvent, as .adjudged by a court of competent jukisdihtion, or is unwilling to pay its uncontested debts, or is adjudged bankrupt, or seeks relief under the bankruptcy laws, then the franchise may be revoked. In the event the Village of Mount Prospect or the Agency believes that grounds for revocation exist or have existed, the Village of Mount Prospect or Agency may notify a Grantee~ in writing, setting forth the nature and facts of such noncompliance. If, within thirty (30) days following such written notification, the Grantee has not furnished reasonably satisfactory evidence that corrective action has been taken or is being actively and expeditiously pursued, or that alleged violations did not occur, or that the alleged violations were beyond the Grantee's control, the Agency shall thereupon refer the matter to the Village of Mount Prospect. Upon referral from the Agency or by its own motion, the Village of Mount Prospect may, following notice of the grounds for revocation, and hearing pursuant to Section 6.402 of this Article, evoke a franchise pursuant to Paragraph Ao of this Section. In the event that a franchise has been revoked by the Village of Mount Prospect, the Village of Mount Prospect shall, to the extent then permitted by existing law, have the options to: Acquire, at the lesser of depreciated replacement value, or fair market value, excluding any value attributable to good will, all the assets of the Grantee's operations within the Village of Mount Prospect; or to require the sale, at the lesser of depreciated replacement value, or the fair market value, excluding any value attributable to good will, of all such assets of the Grantee's operations within the Village of Mount Prospect to a successor Grantee or to require the removal of all such assets from the Village of Mount Prospect. Unless some later date is agreed to by the Grantee and except as provided in Section 6.408 of this Article, such option must be exercised within one (1) year from the ABLE COMMUNICATIONS 6.408 date of the revocation of the franchise, or the entry of the final judgement by a court reviewing the question of the Village of Mount Prospect's revocation, or the entry of a final order upon appeal of same, whichever is later. The termination of a Grantee's rights under a franchise shall in no way affect any other rights the Village of Mount Prospect may have under the franchise or under any provision of law or ordinance. SECTION 6.407 ARBITRARY AND CAPRICIOUS ACTION BY GRANTEE. If a Grantee arbitrarily and capriciously discontinues service to a substantial number of its s~bsc~ibers, the Grantee's franchise may be revoked by a resolution of the Village of Mount Prospect following notice to the Grantee and an opportunity to be heard. Notwithstanding the provisions of Section 6.402, notice to the Grantee under this Section may be less than thrity (30) days. Provided further, the Village of Mount Prospect may seek appropriate judicial or other relief and/or may proceed to exercise its rights and powers as provided for herein. SECTION 6.408 PROVISION FOR ARBITRATION. Ao In the event the Board exercises its options to acquire all of the assets of the Grantee, and the fair market or depreciated replacement value cannot be agreed upon, said value(s) shall be determined by a panel of arbitrators, which panel may be requested by either the Board or the Grantee no sooner than ninety (90) days after notice that the Village desires to purchase the system. The panel shall be composed of one arbitrator chosen by the Village, one arbitrator chosen by the Grantee, and a third arbitrator chosen by the first two arbitrators. The expenses of the arbitration, including the fees of the arbitrators, shall be borne by the parties in such mannter as the arbitrators provide in their award, but in no event will the Village be obligated for more than one-half of said expenses. The determination of a majority of the arbitrators shall be binding on the parties. The arbitrators shall follow the rules and procedures of American Arbitration Association except where in conflict with an express provision of this ordinance. The arbitration hearing shall take place in Cook County, unless otherwise agreed to by the parties in writing. Notwithstanding any other timetable imposed by this Chapter, the Village shall, within ninety (90) days following notice to it of the decision of the . 408 ~ CABLE COMMUNICATIONS /--~'~j 6.41~ decision of the arbit~ either withdraw any notice it may have given of its intent or election to acquire the Grantee's system or shall affirmatively accept the decision of the arbitrators and affirm its election to purchase the system or assets. If the Village of Mount Prospect fails to accept the arbitrator's decision and affirm its election to purchase within the aforesaid ninety (90) day pe~%od, the rights of the Village of Mount Prospect to purchase shall expire. SECTION 6.409 TRANSFER OF OWNERSHIP TO GRANTOR. In those circomstances wherein the Village of Mount Prospect shall have elected to purchase ownership of all the assets of the Grantee's operations within the Village of Mount Prospect, the Village shall, unless the Grantee shall agree to some other terms, pay, in cash to the Grantee, the_price of such assets plus any interest calculated at an annual rate of two (2) percentage points over the prime rate given by the Continental Illinois National Bank to its most credit worthy borrowers of demand loans, which may have accrued from the date the Village of Mount Prospect or any interim operator assumed direction and control of ~he Grantee's cable system within the Village of Mount Prospect to the date of payment. Such payment shall be m~de within twelve (12) months following the date upon which the election to purchase becomes irrevocable. Title to the system or assets shall pass to the Grantor upon such payment. SECTION 6.410 GRANTEE'S OBLIGATION AS TRUSTEE Ao At all times from the expiration or revocation of a franchise and until either (1) a Grantee transfers to the Village of Mount Prospect or other succeeding operator of the system all of its rights, title and interest~to all assets, real and personal, related to its cable television system in the Village of Mount Prospect or (2) the Village of Mount Prospect's right to either acquire or assign its rights to acquire any of the Grantee's assets expires without the Village of Mount Prospect having exercised such a right, whichever occurs first, the Grantee shall have a duty to such successor as a trustee holding such assets for the benefit of such successor and the Grantee shall not sell any of the system assets in the Village of Mount Prospect nor shall the Grantee make any physical, material, or administrative operational changes that would tend to (1) degrade the quality of service to the subscribers, (2) decrease gross revenues, or (3) materially increase expenses without the expressed permission, i~ writing, of the Village of Mount Prospect or its assigns. Immediately upon the assumption of operating control of the system by the Grantee, as Trustee, or a successor Trustee, the Village of Mount Prospect shall cause an independent appraisal and inventory of all the assets of the system to be made to verify and establish the existence and condition of all such real and personal o Co CABLE COMMUNICATIONS property of the system. The Grantee shall at all times operate the system in accordance with terms of this Chapter and the terms of the franchise as if the franchise had not expired or had not been revoked. In the event the Grantee fails or refuses to operate the system as a Trustee, the Village of Mount Prospect.shall have the right to apply to a court of competent jurisdiction for the appointment of a receiver or to operate the system itself as a trustee in accordance with the terms of this Chapter and the terms of the franchise. In the event of expiration or revocation of a franchise, this Section shall not be construed to give a Grantee any vested or other franchise right, but the right of the Grantee in such circumstances shall 'exist only on a day-to-day basis until the transfer is affected. As full compensation for its ownership interests during this interim period, the Grantee shall be entitled to receive the net profit generated during the period between the expiration or revocation of the franchise, as the case may be, and the transfer of title to the Grantee's assets to the Village of Mount Prospect or a successor Grantee. Net profit shall be determined in accordance with generally accepted accounting principles and reported on a basis which is consistent and comparable with the format of the books and accounts maintained by the Grantee during the immediately preceding two fiscal years and as presented in the audited financial statements. Further, this Section shall in no way limit the power of the Village of Mount Prospect, upon expiration or revocation of a franchise, to require the Grantee to cease all operations whatsoever and/or remove its assets from the Village of Mount Prospect, or otherwise exercise any rights the Village of Mount Prospect would otherwise have. SECTION 6.411 FRANCHISE FEE Ao The Grantee, in consideration of the privilege granted under the franchise for the operation of a cable television system, and the expense of regulation pursuant to the franchise incurred by the Village, shall pay to the Village a per cent of its annual gross revenues during the period of its operation under the franchise. This per cent shall be set forth in the franchise and shall be no more than the maximum amount as may be set from time to time by controlling Federal or State law. Such franchise fee shall be payable to the Village of Mount Prospect within thirty (30) days of the close of each month.in which the Grantee provides service to the Village of Mount Prospect. .411 CABLE COMMUNICATIONS ~ 6. 412 The Grantee shall file with the Village of Mount Prospect, within thirty (30) days after the expiration of each of the Grantee's fiscal quarters, a statement clearly showing the gross revenues received by Grantee during the preceding quarter. The Grantee shall also file, within one hundred twenty (120) days following the conclusion of the Grantee's fiscal year, an annual report prepared and audited, at Grantee's expense, by an independent Certified Public Accountant acceptable to the Village of Mount Prospect, clearly showing the yearly total gross revenues. The Village of Mount Prospect shall have the right, consistent with the provision of Section 6.502, Paragraph C, to inspect the Grantee's income records, the right of audit and the recomputation of any amounts determined to be payable under this Chapter. Any additional amount due the Village of Mount Prospect as a result of the audit shall be paid within thirty (30) days following written notice to the Grantee by the Village of Mount Prospect which notice shall include a copy of the audit rep,orr. The cost of said audit shall be borne by the Grantee if it is properly determined, by an independent auditor chosen by the Village of Mount Prospect and Grantee, if necessary, that the Grantee's annual payment due to the Village of Mount Prospect for the preceding year is increased thereby by more than five percent (5%), otherwise, such costs shall be borne by the Village of Mount Prospect. Do In the event that any franchise payment or recomputed amount is not made on or before the applicable dates heretofore specified, interest shall be charged from such date at an annual rate of two (2) percentage points over the prime rate given by the Continental Illinois National Bank to its most credit worthy borrowers of demand loans. go In the event the franchise is revoked or expires, the Grantee shall file with the Village of Mount Prospect, within thirty (30) days of such revocation or expiration, a statement clearly showing the gross revenues received by Grantee since the end of the previous fiscal quarter. The Grantee shall pay the franchise fee due at the time such statement is filed or within thirty (30) days, whichever is sooner. SECTION 6.412 LIABILITY AND INDEMNIFICATION The Grantee shall save and hold the Village of Mount Prospect, its corporate authorities, officers, boards, ABLE COFSMUNICATIONS 6. 412 Co commissions, employees and agents harmless from any injury, claim, demand, suit, judgement, execution liability, debt damages or penalty (hereinafter referred to as "claims") arising out of, resulting from, or alleged to arise out of or result from, the construction, erection, installation, operation, maintenance of, or other activity conhected with, the Grantee's cable television system, whether such acts or omissions are those of the Grantee, whether or not any such act or omission is authorized, allowed or prohibited by this Chapter of the Grantee's franchise. These damages shall include but not be limited to penalties arising out of copyright infringements and damages arising out of any failure by Grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the Grantee's cJble television system. The Grantor shall give immediate written notice to Grantee of any "claim" or facts which might given rise to a "claim" under this Section. Said notice shall state particulars sufficient to identify the "claim" and shall contain reasonably obtainable information respecting the time, place, and circumstances of the occurrence underlying the "claim" or potential "claim." The Grantor shall immediately forward to Grantee any demand, notices summons, or other process received by it or its agents in connection with a "claim" described in this Section. Further, the Grantor shall cooperate with Grantee and assist in the investigation of any "claim" and settle any "claim," and the right to enforce any right of contribution or idemnity against any third party who may be liable to Grantor or Grantee because of any occurrence giving rise to a "claim." The Grantee shal/ pay and by its acceptance of a franchise shall be deemed to have specifically agreed that it will pay all expenses incurred by the Village of Mount Prospect in defending itself with regard to all claims mentioned in Subsection Ao above. These expenses shall include all out-of-pocket expenses, such as attorneys' fees, and shall also include the reasonable value to any services rendered by any employee of the Village of Mount Prospect. The Grantee shall maintain at its own expense, and by its acceptance of a franchise shall be deemed to have specifically agreed that it will maintain throughout the term of such franchise, comprehensive general liability insurance insuring the Village of Mount Prospect and the Grantee with regard to all claims mentioned in Subsection A above in the minimum amounts of: .412~ CABLE COMMUNICATIONS (1) Five Million D61~'~[$5,000,000) for bodily injury or death to any one person, within the limit, however, of Ten Million Dollars ($10,000,000) for bodily injury or death resulting from any one accident; (2) Two Million Dollars ($2,000,000) for property damage, including damage to Village property, resulting from any one accident; (3) Two Million Dollars ($2,000,000) for all other types of liability resulting from any one occurrence. (4) During any period of construction, adequate coverage to meet liability under the Illinois Structural Work Act; (5) Workers' Compensation Insurance within statutory limits and Employers' Liability Insurance of not less than One Hundred Thousand Dollars ($100,000). Ail policies of insurance required by this Section shall be placed with companies which are qualified to write insurance in the State of Illinois by the Illinois Director of Insurance and which maintain throughout the policy term a General Rating of "A" and a Financial Size Category of "XV" as determined by the A.M. Best Company. No insurance policy which provides for a deductible in excess of Two Hundred Fifty Thousand ($250,000) Dollars shall be accepted to meet the requirements of this Section. The Grantee shall maintain at its own expense and by its acceptance of a franchise shall be deemed to have specifically agreed that it will maintain throughout the term of such franchise, a faithful performance, license and franchise bond or letter of credit, as specified in the franchise agreement, running to the Village of Mount Prospect, with at least two good and sufficient sureties approved by the Village of Mount Prospect, in the penal sum of TWo Hundred Thousand Dollars ($200,000), or such greater or lesser sum as may be specified in such franchise. When regular subscriber service is available to more than ninety per cent (90%) of the occupied dwelling units within the Primary Service Area, as described in Section 6.602, the amount of the bond or letter of credit shall be reduced to the amount specified in the franchise, or if no amount is specified therein, then to the sum of Fifty Thousand Dollars ($50,000). Said bonds or letter of credit shall be conditioned that the Grantee shall well and truly observe, fulfill, and perform each term and condition of this Chapter and its franchise and that in case of any breach of condition of the bond, or letter of credit, the amount thereof, shall be recoverable from the principal and sureties thereof by CABLE COM~UNICATIONS I~:' ~-~ 6.412 the Village 5f Mount Prospect for all damages and costs, whether direct or indirect, resulting from the failure of the Grantee to well and faithfully observe and perform any provision of this Chapter or its franchise. Such damages and costs shall be deemed to include, as a minimum and without limitation any expenses as may be incurred by the Village of Mount Prospect as a result of Grantee's failure to comply with the obligations imposed by this Chapter and the franchise including, but not limited to, attorneys' fees and costs if any action or proceeding, the cost of refranchising, and the cost of removal or abandonment of any property, or other costs which may be in default, which costs shall be conclusively presumed to amount to a sum equal to at least the penal sum of such bond. The Village of Mount Prospect shall have no obligation tO de~ote the proceeds of such bond or letter of credit to the completion, connection, operation or removal of Grantee's cable television system, all of which shall remain the obligation of the Grantee. The Village of Mount Prspect's right to recover under the bond or letter of credit shall be in addition to any other rights retained by the Village of Mount Prospect under this Chapter and other applicable law. In addition to the requirements of Paragraph D above, the Grantee shall maintain at its own expense, and by its acceptance of a franchise be deemed to have agreed that it will maintain on deposit with the Village of Mount Prospect throughout the term of such franchise a cash escrow or a letter of credit as specified in the franchise agreement, from an Illinois financial institution in the amount of Ten Thousand Dollars ($10,000) or such greater or lesser amount as may be specified in the franchise agreement. The form and content of such escrow or letter of credit shall be approved by the Village of Mount Prospect's attorney. The escrow or letter of credit shall be conditioned in the same manner as the bond hereinabove required and may be drawn on by the Village of Mount Prospect to compensate itself for any of the damages or costs specified in subsection D above. In particular, but without limitation, such escrow or letter of credit shall be drawn on in the case of any default or failure of the Grantee to pay any fees, penalties, claims, liens or taxes due the Village of Mount Prospect under Section 6.712 of this Chapter or the franchise. Upon drawing on such escrow or letter of credit for any reason, the Village of Mount Prospect shall notify the Grantee. The Grantee shall, within three (3) days of the receipt of such notification, take all action required to restore the escrow or letter of credit to its original full amount. .412 CABLE COM~UNICATIONS 6.413 The rights reserved to the Village of Mount Prospect with respect to the escrow or letter of credit are in addition to all other rights of the Village of Mount Prospect, whether reserved by this Chapter or the franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such escrow or letter of credit shall affect any other right the Village of Mount Prospect may have. Fo Ail insurance policies, bonds, escrows and letters of credit required by this Section shall contain a provision requiring at least thirty (30) days written notice to both the Village of Mount Prospect and the Grantee of any cancellation, termination, or other expiration and shall provide that no such cancellation,~termination or expiration shall be effective prior to such notice. Each such policy, bond, escrow and letter of credit must be approved by the President and Board of Trustees of the Village of Mount Prospect and copies of such documents, along with written evidence of payment by the Grantee of required premiums or fees shall be filed and maintained with the Village Manager. Notices of renewal of any expiring policy or bond shall be filed with the Village Manager at least sixty (60) days prior to the date of such expiration. Go If the Grantee proposes to secure a new insurance policy, bond or letter of credit instead of renewing an existing policy, bond or letter of credit, the Grantee shall, at least thirty (30) days prior to the expiration date of any such existing insurance policy, bond or letter of credit, submit to the President and Board of Trustees of the Village of Mount Prospect a copy of the ' proposed new policy, bond or letter of credit, and such proposed new policy, bond or letter of credit shall become effective only upon the expiration date of such expiring policy, bond or letter of credit if the President and Board of Trustees of the Village of Mount Prospect have approved the terms and coverage of the said proposed new policy, bond or letter of credit. The Grantee shall comply with all applicable provisions of this Section as to any such new policy, bond or letter of credit. SECTION 6.413 TRANSFER OF FRANCHISE Ao A franchise granted under this Chapter shall be a privilege to be h~ld personally in trust by the Grantee. Except as otherwise provided in the franchise agreement, the franchise shall not be assigned, transferred, mortgaged, leased or sublet, sold or disposed of, transferred in trust, pledged~ in whole or in part, by voluntary sale, merger, sale and leaseback, consolidation or otherwise or by forced or involuntary sale, without prior consent of the Village of Mount Prospect expressed ~j CABLE COMMUNICATIONS '~- 6. 413. by resolution and then on only such conditions as may therein be prescribed. Any sale, transfer or assignment not made according no the procedures set forth in this Chapter shall render the franchise void. The sale, transfer or assignment in bulk of the major part of ghe tangible assets of the Grantee shall be considered an assignment and shall be subject to the provisions of this Section. Bo Any sale, transfer or assignment authorized by the Village of Mount Prospect shall be made by a bill of sale or similar document, an executed copy of which shall be filed with the Village of Mount Prospect within thirty (30) days after such sale, transfer or assignment. The Village of Mount P~ospect shall not withhold its consent unreasonably; provided, however, the proposed assignee agrees to comply with all the provisions of this Chapter and the franchise and reasonably amendments thereto, and must at a minimum, satisfy the legal, financial, technical and character qualifications required by Section 6.302 of this Chapter. Prior approval of the Village of Mount Prospect shall be required where ownership or control of more than twenty per cent (20%) of the right of control of the Grantee is acquirad during the term of the franchise in any transaction or series of transactions by a person or group of persons acting in concern, none of whom owned or controlled twenty (20) per cant or more of such right of control, singularly or collectively on the effective date of the franchise. By its acceptance of this franchise, the Grantee specifically grants and agrees that any such acquisition occurring without prior approval of the Village of Mount Prospect shall render the franchise void. Do The consent of the Village of Mount Prospect to any sale, transfer lease, trust, mortgage or other instrument of hypothecation shall not constitute a waiver or release of any of the rights of the Village of Mount Prospect under this Chapter and the franchise. RTICLE V: ~~'AND USER FEES AND RECORDS SECTION 6.501 SUBSCRIBER AND USER FEES By accepting a franchise granted pursuant to the terms and conditions imppsed by this Chapter, the Grantee agrees that the ViIlage of Mount Prospect shall have the authority and right to cause the Grantee's fees for regular subscriber service, and all other subscriber and user services to the extent permitted by law or FCC rules and regulations, to conform to the provisions contained herein. The Village of Mount Prospect shall also have the authority and right to fix fees and to deny increases or order reduction of fees when it determines that in the absence of spch action on its part, the Grantee's fees or proposed fees do not conform to the stiuplations contained herein. Bo Ail charges to subscribers and users shall be consistent with a schedule of fees for all services offered as established by the Grantee. Changes in the fee schedule shall not take effect until at least ninety (90) days after notification of same is delivered to the Village of Mount Prospect and to current subscribers and users. All charges to subscribers and users, and any proposed increase in such charges, shall be fair, reasonable and just and in no event shall any such charge be greater than necessary to meet the costs of service (assuming efficient and economical management) and to provide a fair rate of return. Co The Grantee shall not, with regard to fees, discriminate or grant any preference or advantage to any person; provided, however, that the Grantee may establish different rates for different classes of subscribers or users based upon cost of service differentials, provided that the Grantee not discriminate between any subscribers or users of the same class. Notwithstanding the foregoing provisions, and except in the case of extraordinary circumstances as approved by the Village of Mount Prospect, the Grantee shall not increase the fees for services proposed in the franchise application above the rates specified in said application for a period of thirty-six (36) months from the time service is provided to the first subscriber pursuant to the Grantee's franchise; provided, however, that the Grantee shall have the authority and the right to add to its service or installation fees any Federal, State or local taxes or fees directly imposed on subscribers, and for any additional copyright fees that may be imposed as a result of legislative or judicial action ABLE COMMUNICATIONS ~ v~501 at the Federal, State or local level taken after the filing of the franchise application. If during the term of the franchise, the Grantee receives refunds of any copyrigh~ payments, it shall without delay notify the Village of Mount Prospect, suggest a plan for flow- through of the refunds to its subscribers, and retain such refunds in an interest bearing escrow account pending order of the Village of Mount Prospect. After considering the plan submitted by the Grantee, the Village of Mount Prospect shall order flow-through of the refunds with accrued interest to the Grantee's subscribers in a fair and equitable manner. Eo Nothwithstanding Subsections A. through D. hereof, no action shall be taken by the President and Board of Trustees of the Village of Mount Prospect with respect to the Grantee's rates, nor rules and regulations applicable thereto, until at least the expiration of thirty (30) months following the date service is provided to the first subscriber under the franchise. At any time thereafter, the Board may after proper notice as provided in Section 6.402. hold public hearings to consider the necessity of regulating the subscriber rates charged by the Grantee, and may following such hearings establish procedures for the review of subscriber and user rates and may order adjustments to such rates in accordance with the provisions of this Section provided, however, that this Section shall not permit the Village of Mount Prospect to order the Grantee to rebate any fee or portion thereof charged during the period when such fees were not subject to regulation by the Village of Mount Prospect. The Grantee shall be required to apprise in writing each new subscriber of all applicable fees and charges for providing cable television service. Go Grantee may, at its own discretion, in a non-discriminatory manner, waive, reduce or suspend connection fees or monthly service fees for promotional purposes. Ho Except as may be otherwise provided in a franchise, a subscriber shall have the right to have its service disconnected without charge, which shall include the removal of any equipment owned by the Grantee from the subscriber's residence. Such disconnection shall be made as soon as practicable and in no case later than thirty (30) days following written notice to the Grantee of same. No Grantee shall enter into any agreement with a subscriber which imposes any charge following disconnection of service, except for reconnection and subsequent monthly or periodic charges, and those charges shall be no greater than charges for new customers. This Section shall not prevent a Grantee from refusing service to any person because of the Grantee's prior accounts with that person remain due and owing. .501 CABLE COMMUNICATIONS 6.502 I.. Except as may be otherwise provided in a franchise, a Grantee may offer service which requires advance payment of periodic service charges for no more than one (1) year in advance subject to the conditions contained in this ~aragraph. A subscriber shall have the right, at any time, to have its service disconnected without charge and with a refund of unused service charges paid to the customer within thirty (30) days from the date of service. Rate increases shall not be effective with respect to any subscriber until after the expiration of any period for which advance payment has been accepted by the Grantee. SECTION 6.502 BOOKS AND RECORDS Ao A Grantee shall, (1) within thirty (30) days following the acceptance of a franchise, and (2) at least yearly thereafter, and (3) within thirty (30) days of the change of ownership of three percent (3%) or more of any class or series of the outstanding voting stock or equivalent ownership interest of a Grantee, furnish the Village of Mount Prospect a list, showing the names and addresses of persons owning three percent (3%) or more of any class or series of the outstanding voting stock or equivalent ownership interest of the Grantee, together with a roster of the Grantee's officers and directors (or equivalent managerial personnel) and their addresses. A Grantee shall maintain books and records of its operations within the Village of Mount Prospect to show the following in sufficient detail, consistent with generally accepted accounting principles: 1. Total revenues, by service category. o Operating expenses, categorized by general and administrative expenses, technical expenses, and programming expenses, and overhead where applicable. 3. Capital expenditures, to include capitalized interest and overhead, if any. 4. Depreciation (straight line) expense, by category. A grantee shall maintain such books and records for the Franchise Area specified in the franchise separately from any other operations; provided, however, that any expenses or expenditures which apply to both the system in said Franchise Area and any other operations shall be reasonably allocated between all such operations, consistent with generally accepted accounting principles. CABLE COMMUNICATIONS 6. 502' Such books and records shall be retained, in any reasonable form, for a period of not less than fifteen (15) years. The Village of Mount Prospect shall have the right to extend the retention period through the term of any renewed franchise. The books and records of the Grantee's operation within the Village of Mount Prospect, which are required to be maintained pursuant to paragraph (B) above, shall be made available in the Grantee's local office during normal business hours, for inspection and audit by the Village of Mount Prospect within thirty (30) daYs after such request has been made. Copies of the Grantee's schedule o~ charges, contract or application forms for subscriber and user services, policy regarding the processing of subscriber complaints, delinquent subscriber disconnect and reconnect procedures and any other terms and conditions adopted as the Grantee's policy in connection with its subscribers or users shall be filed with the Village Manager and shall be made available for inspection by the public in the Grantee's local office. RTICLE ~VIj SYSTEM OPERATIONS SEC%ION 6.601 FRANCHISE AREAS Every application shall designate a proposed Primary Service Area (PSA) and a proposed schedule for making service available throughout the PSA. The boundaries of the Primary Service Area shall be subject to approval by the Village of Mount Prospect, and shall be incorporated into the franchise granted pursuant to this Chapter. If no PSA is specifically delineated in a franchise, the PSA shall be considered to be coterminous with the Franchise Area. If no schedule is specified, service shall be made available throughout the entire PSA within twenty-four (24) months of the effective date of the franchise. Grantee shall furnish to the Village of Mount Prospect a map of suitable scale indicating the Primary Service Area to be served and showing all roads and public buildings within the PSA. The areas of the Village of Mount Prospect for which applications for franchise will be accepted shall be specified by the Village of Mount Prospect; in the absence of such specification, applications shall be accepted for any area within the Village of Mount Prospect. SECTION 6.602 EXTENSION OF SERVICE. Following completiOn of construction within the PSA, each-Grantee shall extend its CATV System and make CATV Service available beyond the PSA as follows: Bo Co Along streets or parts of streets beginning at the boundary of the PSA or at any trunk or feeder line extension beyond the PSA within one (1) year after any such street reaches a minimum density of fifty (50) dwelling units per street mile, and, Concurrently with the installation of utility lines to developing areas having a planned minimum density of fifty (50) dwelling units per street mile, which lie contiguous to the boundary of the Primary Service Area or at the end of any trunk or feeder line extensions beyond the Primary Service Area. The Grantee, in its application, may propose a line extension policy which will result in serving more residents of the Village of Mount Prospect than as required above, in which case the Grantee's application will be incorporated by reference in the franchise, and will be binding on the Grantee. SECTION 6.603 INDIVIDUAL SERVICE DROPS mo Grantee shall extend and make cable television service available to any isolated subscriber within or without he Primary Service Area ~equesting connection at the standard connecti~'~'~arge, if the connection to such subscriber would require no more than a standard one hundred and fifty (150) foot aerial or buried drop line measured from the subscriber's property line nearest to a trunk or feeder cable required to be installed pursuant to Section 6.601 or 6.602 of this Article, to the subscriber's connection. B. With respect to requests for connection requiring an aerial or'buried drop line in excess of one hundred and fifty (150) feet, Grantee shall extend and make available cable television service to such subscribers at a connection charge not to exceed the actual installation costs incurred by the Grantee for the distance exceeding. one hundred fifty (150) feet. SECTION 6.604 SYSTEM DESCRIPTION AND SERVICE The cable television system to be installed by Grantee shall comply in all respects with the requirements set forth in the FCC's Rules for Cable Television including applicable amendments thereto, provided, however, that nothing contained herein shall be construed to prohibit the Grantee from proposing to comply with more rigid technical performance requirements~ in which case the Grantee's application shall be incorporated by reference in the franchise and will be binding on the Grantee. If the FCC should delete said requirements, the Village of Mount Prospect hereby reserves the right to amend this Chapter to incorporate similar standards and every franchise granted pursuant to this Chapter shall be subject to such reserved power whether or not expressly so conditioned. Applications for franchise may include proposals for the provision of public, education, local governments, and leased access channels. Such proposals by a Grantee, if accepted by the Village of Mount Prospect, shall be incorporated into the franchise granted. No such proposal shall be accepted unless it complies with the following minimum requirements: The Grantee shall have available equipment for local production and presentation of cablecast programs other than automated services and shall permit its use for the production and presentation of public access programs. The Grantee shall not enter into any contract, arrangement, or lease for use of its cablecast equipment which prevents or inhibits the use of such equipment for a substantial portion of time for public access programming. .604 CABLE COMMUNICATIONS 6.604 The Grantee shall have no connrol over the content of access cablecast programs, however, this 'limitation shall not prevenn taking appropriate steps to ensure compliance with the operating rules described herein; failure to comply with such operating rules shall constitute a violation of this Chapter~ The public access channel(s) shall be made available to residents of the Village of Mount Prospect on a first-come, first-served, non-discriminatory basis, consistent with the goal of the maximum availability of access, free of charge. Charges for equipment, personnel, and production of public access programming shall be.reasonable and consistent with the goal of affording users a low- cost means of television access. The Grantee shall adopt operating rules for the public access channel(s), to be filed with the Village of Mount Prospect prior to the activation of the channel(s), designed to prohibit the presentation of: any advertising material designed.to promote the sale of commercial products or services (including advertising by or on behalf of candidates for public office); lottery information; programming in violation of any federal, state or local law, as well as rules requiring first-come nondiscriminatory access, and rules permitting public inspection of a complete record of the names and addresses of all persons or groups requesting access time. Such a record shall be retained for a period of two years. The education access channel(s) shall be made available for the use of schools free of charge. The Grantee shall adopt operating rules for the education access channel(s), to be filed with the Village of Mount Prospect prior to activation of the channel(s), designed to prohibit the presentation of: any advertising material designed to promote the sale of commercial products or services (including advertising by or on behalf of candidates for public office); lottery information; programming in violation of any federal, state or local law. The local government access channel(s) shall be made available for the use of the Village of Mount Prospect or other such unit of local government as shall be designated by the Village of Mount Prospect, free of charge. 6 Do CABLE COMMUNICATIONS 6.604 The leased access channel(s) as specified in the franchise application shall be made available to leased access users. Priority shall be given part-time users on at least one channel. The Grantee shall adopt operating rules for the channel(s), to be filed with the Village Manager prior to activation of, the channel(s), designed to prohibit the presentation of: lottery information, to the extent such information is prohibited by state law; and obscene or indecent matter and shall establish rules to this effect; and other rules requiring non-discriminatory access, sponsorship identification, specifying an appropriate rate schedule and permitting public inspection of a complete record of the names and addresses of all persons or groups requesting time. Such a record shall be retained until the earliest scheduled performance evaluation session described in Section 6.404 of this Chapter or for a longer period as determined by the Village of Mount Prospect. Grantee shall provide, without charge-within the Primary Service Area, one service outlet activated for regular subscriber service to each fire station, school, police station, public library, and such other buildings used for governmental purposes as may be designated in the franchise agreement; provided, however, that if it is necessary to extend Grantee's trunk or feeder lines more than three hundred (300) feet solely to provide service to any such school or public building the Village of Mount Prospect shall have the option either of paying Grantee's direct costs for such extension in excess of three hundred (300) fee, or of releasing Grantee from the oblication to provide service to such building. Furthermore, Grantee shall be permitted to recover, from any public building owner entitled to free service, the direct cost of installing, when requested to do so, more than one outlet, or concealed inside wiring, or a service outlet requiring more than three hundred (300) feet of drop cable; provided, however, that the Grantee shall not charge for the provision of megular subscriber service to the additional service outlets once installed. The Grantee shall not permit the transmission of any programming in violation of any federal, state or local law. Grantee shall inform each subscriber of the availability of a device capable of locking out any programming video and audio signals and shall provide such a device for each outlet to any subscriber upon request at no additional charge. .605 CABLE COMMUNICATIONS 6.605 SECTION 6.605 OPERATIONAL REQUIREMENTS AND RECORDS A~ Grantee shall construct, operate, and maintain the cable television system in full compliance with the rules and regulations, including applicable amendments, of the Federal Communications Commission and all other applicable Federal, State, or local laws and regulations, including the latest editions of the National Electrical Safety Code and the National Fire Protection Association National Electrical Code. The cable teievision system and all its parts shall be subject to inspection by the Village of Mount Prospect, and the Village of Mount Prospect hereby reserves the right to review Grantee's construction plans prior to the commencement of construction. The Village of Mount Prospect shall-not,'however, be required to make inspections or approve the Grantee's system and plans, and specifically disclaims such obligation. The Grantee shall be solely responsible for taking all steps necessary to assure compliance with such laws and regulations and the safety of its system as installed. Grantee shall maintain an office, within the Village of Mount Prospect unless otherwise stated in the franchise, which shall be open and accessible to the public with adequate telephone service during normal business hours. Grantee shall employ an operator or maintain a telephone answering service twenty-four (24) hours per day, each day of the year, to receive subscriber complaints and to dispatch assistance in the case of any emergency or major system malfunction affecting a number of subscribers. Grantee shall design, construct, operate, and maintain the system at all times so that signals carried are delivered to subscribers without material degradation in quality (within the limitations imposed by the technical state-of-the art). Do Copies of all correspondence, petititons, reports, applications and other documents filed by Grantee with Federal or State agencies having appropriate jurisdiction in matters affecting cable television operation or received from said agencies shall be furnished simultaneously to the Village of Mount Prospect by Grantee. In the case of any emergency or disaster, the Grantee shall, upon request of the Village of Mount Prospect, make available its facilities to the Village of Mount Prospect, without cost, for emergency use during the emergency or disaster period. .606 CABLE COMi~UNICATIONS 6.606' SECTION 6.606 TESTS AND PERFORMANCE MONITORING No later than ninety (90) days after any new or substantially rebuilt portion of the system is made available for service to subscribers, technical performance tests shall be conducted~by the Grantee to demonstrate full compliance with the Technical Standards applicable pursuant to Paragraph A of Section 6.604, and Paragraph C of Section 6.605 of this Chapter. Such tests shall be performed by, or under the supervision of a qualified and independent registered professional engineer or an engineer with proper training and experience. A copy of the report shall be submitted to the Village Manager, describing test results, instrumentation, calibration, and test procedures, and the qualificat{ons of the engineer responsible for the tests. System monitor test points shall be established at or near the output of the last amplifier in the longest feeder line, at or near trunk line extremities, or at the locations to be specified in the franchise. Such periodic tests shall be made at the test points as shall be required by the Village of ~unt Prospect or the Agency. Co At any time after commencement of service to subscribers, the Village of Mount Prospect may require additional reasonable tests, including full or partial repeat tests, different test procedures, or tests involving a specific subscriber's terminal, at the Grantee's expense to the extent such tests may be performed by the Grantee's employees utilizing its existing facilities and equipment; provided, however, that the Village of Mount Prospect reserves the right to conduct its own tests upon reasonable notice to the Grantee and if non-compliance is found, the expense thereof shall be borne by the Grantee. The Village of Mount Prospect will endeavor to arrange its request for such special tests so as to minimize hardship or inconvenience to Grantee or to the subscriber. Do A copy of the annual performance tests report required by the Federal Communications Commission shall be submitted to the Village Manager within thirty (30) days of its completion. go The Village of Mount Prospect shall have the right to employ qualified consultants if necessary or desirable to assist in the administration of this, or any other Section of this Chapter. . 607 CABLE COMMUNICATIONS ~ 6. 607 SECTION 6. 607 SERVICE, ADJUSTMENT AND COMPLAINT PROCEDURE Bo Bo Grantee shall fill all requests for CATV service, once facilities are in place, within thirty (30) days after the date of each request. A record of all service requests shall be kept until the next scheduled performance evaluation session.described in Section 6.604 of this Chapter or for a longer period as determined by the Board and shall be available for public inspection at the local office of the Grantee during regular office hours. Grantee shall furnish each subscriber at the time service is installed written instructions that clearly set forth procedures for placing a service call, or requesting an adjustment. Said ins~ruct~ions shall also include a reminder that the subscriber can contact a Village of Mount Prospect employee for infoznLation regarding terms and conditions of the Grantee's franchise if the Grantee fails to respond to the subscriber's request for installation, service or adjustment within a reasonable period of time. Grantee shall establish a maintenance service capable of locating and correcting major system malfunctions promptly which shall be available at all hours, to correct such major system malfunctions affecting a number of subscribers. A listed local telephone number shall be made available to subscribers for service calls at any time of the day or night. Investigative actions shall be initiated in response to all service calls, other than major system malfunctions, not later than the next business day after the call is received, action on major malfunctions shall be initiated immediately upon receipt of notice. Corrective action shall be completed as promptly as practicable. Appropriate records shall be made of service calls showing when and what corrective action was completed. Such records shall be available to the Village of Mount Prospect during normal business hours and retained in Grantee's files until the next scheduled performance evaluation session described in Section 6.404 of this Chapter or for a longer period as directed by the Village of Mount Prospect. 'A summary of such calls shall be prepared by the Grantee and submitted to the Village of Mount Prospect annually, beginning twelve (12) months after service is provided to the first subscriber. In the event a subscriber does not obtain a satisfactory response or resolution to his request for service or an adjustment within a reasonable period of time, he may . u,~7 CABLE COM~4UNICATIONS 6. 608' advise the Agency or other designated employee in writing of his dissatisfaction and the Agency or other designated employee shall have authority to investigate any subscriber or user complaint or request for adjustment and to order corrective action as shall be appropriate. The Village of Mount Prospect may require Grantee to establish rules and procedures regulating complaint resolution in the franchise agreement. Fo The Grantee shall interrupt system service after 7:00 a.m. and before 1:00 a.m. only with good cause and for the shortest time possible and, except in emergency situations, only after cablecasting notice of service interruption at least twenty-four (24) hours in advance of the service interruption. Servfce may be interrupted between 1:00 a.m. and 7:00 a.m. for routine testing, maintenance, and repair with notification, on any day except Saturday or Sunday or a legal holiday. SECTION 6.608 STREET OCCUPANCY Ao Grantee shall-~utilize existing poles, conduits and other facilities whenever possible, and shall not construct or install any new, different, or additional poles, conduits, or other facilities whether on the public way or on privately-owned property within the Village of Mount Prospect until the written approval of the Village of Mount Prospect, and, if necessary, of the property owner is obtained. Such approval shall not be unreasonably withheld by the municipality. No location of any pole, wire-holding structure or other facility of the Grantee shall be a vested interest and such poles, structures and facilities shall be removed, relocated or modified by the Grantee at its own expenses whenever the Village of Mount Prospect or other governmental authority determines that the public convenience would be enhanced thereby. Nothing herein or in any franchise shall be construed to entitle Grantee to the use of any property other than the public way. The Village of Mount Prospect shall be entitled to make use of the Grantee's poles and other wire-holding structures so long as such use does not unreasonably interfere with Grantee's operations. Co Where a public utility serving the Village of Mount Prospect desires to make use of the poles or other wire-holding structures of the Grantee but agreement therefore with the Grantee cannot be reached, the Village of Mount Prospect may require the Grantee to permit such use for such consideration and upon such terms as the Village of Mount Prospect shall determine to be just and reasonable, if the Village of Mount Prospect determines that the use would enhance the public convenience and would not unduly interfere with the Grantee's operations. .608~ CABLE COMMUNICATIONS 6.608 Fo All transmission lines, equipment and structures shall be installed and located in compliance with all applicable local ordinances and so as to cause minimum interference with the rights and reasonable convenience of property owners who adjoin any public way and at all times, shall be kept and maintained in a safe, adequate, and substantial. condition, and in good order and repair, consistent with the provisions of Paragraph F, of this Section. The Grantee shall at all times employ reasonable care and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injuries, or nuisances to the public. Suitable barricades, flags, lights, flares, or other devices shall be used at such times and places as are required by applicable ordinances and at such additional times and places as are reasonably required for the safety of all members of the public. Any poles or other fixtures placed in any public way by the Grantee shall be placed and maintained in such a manner as not to interfere with the usual travel or other existing or projected uses of such public way. Unless expressly provided otherwise in the franchise, the Grantee shall at all times comply with any and all rules and regulations enacted or to be enacted by the Village of Mount Prospect with reference to construction activity in public ways. Grantee shall remove, replace, or modify at its own expense, the installation of any of its facilities when directed to do so by the Village of Mount Prospect. Ail installations shall be underground in those areas of the Village of Mount Prospect when public utilities providing both telephone and electric service are underground at the time of installation. In areas where either telephone or electric facilities are aboveground at the time of installation, the Grantee may install its service aboveground, provided that at such time as those facilities are required to be placed underground by the Village of Mount Prospect or are placed underground, the Grantee shall likewise place its services underground without additional cost to the Village of Mount Prospect or to the individual subscriber so served within the Village of Mount Prospect. Where not otherwise required to be placed underground by this Chapter, the Grantee's system shall be located underground at the request of the adjacent property owner, provided that the excess cost over aerial location shall be borne by the property owner making the request. ABL~ COMMUNICATIONS 6.60~ Go In the event of disturbance of any public way, private property or improvement on either of them by the Grantee, it shall, at its own expense and in a manner approved by the Village of Mount Prospect or other appropriate governmental authority and the owner, replace and restore such public way, private property or improvement in as good a condition as before the work causing such disturbance was done. In the event the Grantee fails to perform such replacement or restoration the Village of Mount Prospect or the owner shall have the right to do so at the sole expense of the Grantee. Demand for payment to the Village of Mount Prospect or owner for such replacement os restoration shall be in writing. Whenever, in case of emergency~ it~becomes necessary in the judgement of the Village of Mount Prospect to remove or damage any of the Grantee's facilities, no charge shall be made by the Grantee against the Village of Mount Prospect for restoration and repair. At the request of any person holding a valid building moving permit issued by the Village of Mount Prospect- or other appropriate governmental authority and upon at least forty-eight (48) hours notice, Grantee shall temporarily raise~ lower, or cut its wires as may be necessary to facilitate such move. The direct expense of such temporary changes, including standby time, shall be paid by the permit holder, and Grantee shall have the authority to require payment in advance. Grantee shall not cut or trim any tree, shrub or vegetation on public property without first obtaining written authorization from the Village. Any such work shall be done at Grantee's expense and shall be subject to the supervision and direction of the Village of Mount Prospect. SECTION 6.609 CONSTRUCTION SCHEDULE AND REPORTS Upon accepting the franchise, Grantee shall, within sixty (60) days, file the documents required to obtain all necessary Federal, State and local licenses, permits and authorizations required for the conduct of its business, and shall submit monthly reports to the Village Manager's Office on progress in this respect until all such documents are in hand. Failure of the Grantee to pursue all necessary steps to secure the aforementioned authorizations with due diligence shall constitute a substantial violation of this Chapter. .609 CABLE COMiVfUNICATIONS 6.610 Bo Co Do Franchise applications shall include a schedule for construction of the cable television system, including a timetable for commencement of cable television service to subscribers. Said schedule shall be incorporated into the franchise and shall be enforceable as to the Grantee under the grovisions of this Chapter. Within one hundred twenty (120) days after accepting a franchise, Grantee shall furnish the Village of Mount Prospect a copy of the preliminary engineering drawings and an operating construction schedule setting forth target dates by area for construction activity. The drawings and schedule shall be updated whenever substantial changes become necessary. Every three (3) months after the stuart of construction, Grantee shall furnish the Village 6~' MOunt ProsPect a report on progress of construction until complete. The report shall include a map that clearly defines the areas wherein regular subscriber service is available. SECTION 6.610 PROTECTION OF PRIVACY Grantee shall not permit the transmission of any signal, aural, vi~uat or digital, including "polling" the channel selection, from any subscriber's premises without first obtaining informed consent of the subscriber which shall not have been obtained from the subscriber as a condition of any service for which transmission is not an essential element. The request for such consent shall be contained in a separate document, which spec±fically enumerates and describes the transmissions being authorized and includes a prominent statement that the subscriber is authorizing the permission in full knowledge of its provision and shall be revocable at any time by the subscriber without penalty of any kind whatsoever. This provision is not intended to prohibit the use or transmission of signals useful only for the control or measurement of system performance or used for billing subscribers. Bo Grantee shall not permit the installation of any special terminal equipment in any subscriber's premises that will permit transmission from subscriber's premises of two-way services utilizing aural, visual or digital signals without first obtaining written permission of the subscriber as provided in Paragraph A of this Section. ABLE CO~NICATIoNs : 6.612 Grantee, or any of its agents or employees, shall not, without the specific written authorization of the subscriber involved, as provided in Paragraph A of this Section, sell or otherwise make available to any party any information which identifies the viewing habits or responses of individual subscribers. SECTION 6. 611 OTHER BUSINESS ACTIVITIES The Grantee, its subsidiaries and affiliates are specifically prohibited from engaging directly or indirectly, in the sale or leasing of television receivers, radio receivers, or television or radio parts, except such parts and accessories required for any type of cable connections, such as convert,rs and connection plugs and accessories, individually or with any person, anywhere in the Village of Mount Prospect, whether or not for a fee or charge, and is further prohibited from 'engaging in any type of repair service to television receivers or radio receivers. Bo Grantee is expressly prohibited from requiring the removal or from offering to remove or to provide any inducements for removal of any potential or existing subscriber antennas as a condition for provision of service. SECTION 6.612 AREAWIDE INTERCONNECTION OF CATV SYSTEMS Ao Co Each Grantee, if ordered to do so by resolution of the Village of Mount Prospect shall interconnect Access Channels and/or Local Origination Channels of its CATV System with all other CATV Systems in adjacent areas. Upon receiving an order to interconnect, the Grantee shall make a good faith effort to obtain agreements for the sharing of interconnection costs among all interconnecting companies. The Village of Mount Prospect may extend the time to interconnect or may rescind its order to interconnect upon finding that the Grantee has made a good faith effort but has been unable to obtain a reasonable interconnection agreement or that the cost of the interconnection would cause an unreasonable increase in subscriber rates. Each Grantee shall cooperate with any entity established for the purpose of regulating, financing, or otherwise providing for the interconnection of CATV Systems, .612 CABLE COFSVfUNICATIONS 6.612 Fo The Village of Mount Prospect may require a Grantee to provide Local Origination equipment that is compatible with that used by other CATV Systems within the adjacent areas. Grantee shall make every reasonable effort to cooperate with cable television franchise holders in contiguous communities in order to provide cable service in areas outside the Grantee's Franchise Area. The Village of Mount Prospect shall make every reasonable effort to cooperate with the franchising authorities in contiguous communities, and with the Grantee, in order to provide cable television service in areas outside the Village of Mount Prospect. ARTICLE VII: GENERAL PROVISIONS SECTION 6.701 LIMITS ON GRANTEE'S RECOURSE Ao Co Grantee shall have no recourse against the Village of Mount Prospect for any loss, expense or damage resulting from the nerms and conditions of this Chapter or the franchise because Sf the Village of Mount Prospect's granting or enforcement thereof nor for the Village of Mount Prospect's failure to have authority to grant the franchise. The Grantee expressly~agrees that upon its acceptance of the franchise, it does so relying upon its own investigation and understanding of the power and authority of the Village of Mount Prospect to grant said franchise. The Grantee, by accepting the franchise, acknowledges that it has not been induced to accept same by any promise, verbal or written, by or on behalf of the Village of Mount Prospect or by any third person regarding any term or condition of this Chapter or the franchise not expressed therein. The Grantee further pledges that no promise or inducement, oral or written, has been made to any Village of Mount Prospect employee or official regarding receipt of the cable television franchise other than as contained in the franchise agreement. The Grantee further acknowledges by acceptance of the franchise that it has carefully read the terms and conditions of this Chapter without reservation the obligations imposed by the terms and conditions thereof. The decision of the Board concerning Grantee selection and awarding of the franchise shall be final. The grantee shall not apply for any waivers, exceptions, or declaratory rulings from the Federal Communications Commission or any other Federal or State regulatory agency without prior written notice to the Village of Mount Prospect. SECTION 6.702 COMPLIANCE WITH STATE AND FEDERAL LAW. The Grantee shall, at all times, comply with all laws of the State and Federal government and the rules and regulations of any Federal or State administrative agency. SECTION 6.703 SPECIAL LICENSE. Upon such conditions as the Village of Mount Prospect may deem necessary, and notwithstanding 'the provision of Article III of this Chapter, the Village of Mount Prospect may issue a license, easement or other permit to anyone other than a Grantee to permit that person to traverse any portion of the Village of Mount Prospect in order to provide service outside the Village of Mount Prospect. Such license or easement, absent a grant or a franchise in accordance with this Chapter shall not authorize nor permit said person to provide a cable television service of any nature to any home or place of business within the Village 6.7~'-~%~> CABLE COFiMUNiCATIONS 6.706 of Mount Prospect, nor to render any service or connect any subscriber within the Village of Mount Prospect to a Grantee's cable television system. SECTION 6.704 FRANCHISE VALIDITY The Grantee agrees?~ by the acceptance of the franchise, to accept the validity of the terms and conditions of this Chapter and the franchise in their entirety and that it will not, at any time, proceed against the Village of Mount Prospect in any claim or proceeding challenging any term or provision of this Chapter or the franchise as unreasonable, arbitrary or void~ or that the Village of Mount Prospect did not have the authority to impose such term or condition. In case of conflict or ambiguity between this Chapter, the franchise or the Grantee's franchise application, the Grantee agrees that the provision which provides the greatest benefit to the Village of Mount Prospect in the sole discretion of the Village of Mount Prospect shall prevail. SECTION 6.705 FAILURE TO ENFORCE FRANCHISE. The Grantee shall not be excused from complying with any of the terms and conditions of this Chapter or the franchise by any failure of the Village of Mount Prospect upon any one or more occasions, to insist upon the Grantee's performance or to seek Grantee's compliance with any one or more of such terms or conditions. SECTION 6.706 RIGHTS RESERVED TO THE GRANTOR The Village of Mount Prospect hereby expressly reserves the following rights which shall not be deemed to be waived or abrogated by any franchise granted pursuant to this ordinance: To exercise its governmental powers, now or hereafter, to the full extent that such powers may be vested in or granted to the Village of Mount Prospect. To adopt, in addition to the provisions contained herein and in the franchise and in any existing applicable ordinance, such additional regulations as it shall find necessary in the exercise of its police power. To amend this Chapter or any franchise granted pursuant to this Chapter as provided in Section 6.403 to require reasonable and appropriate modifications in a Grantee's franchise of a nature that would not result in effectively terminating same, provided that the Village of Mount Prospect shall not make . CABLE COMMUNICATIONS 6. 708 ' any amendments or modifications to this Chapter or a franchise granted hereunder which would alter the provisions of Section 6.405(D) or 6.406(E) during the term of any franchise granted hereunder. To renegotiatg any franchise granted pursuant to this Chapter should substantial Section(s) of the Chapter or franchise be rendered void by the Federal Communications Commission, or by subsequent changes in applicable Federal or State laws, rendered void by the Federal Communications Commission, or by subsequent changes in applicable Federal or State laws. SECTION 6.707 EMPLOYMENT REQUIREMENT, The Grantee shall not refuse to hire, nor discharge from employment, nor discriminate against any person regarding compensation, terms, conditons, or privileges of employment because of age, sex, race, color, creed, or national origin. The Grantee shall take affirmative action to ensure that employees are treated fairly and equally during employment, w~thout regard to their age, sex, race, color, creed or national origin. The condition includes, but is not limited to, the following: recruitment advertising, employment interviews, employment, rates of pay, upgrading, transfer, demotion, lay-off, and termination. SECTION 6.708 TIME ESSENCE OF AGREEMENT/FORCE MAJEUR. Whenever thi~ Chapter or the franchise sets forth any time for any act to be performed by the Grantee, such time shall be deemed of the essence and the Grantee's failure to perform within the time allotted shal~, in all cases, be sufficient grounds for the Village of Mount Prospect to invoke the remedies available under the terms and conditions of this Chapter and the franchise.' Whenever a period of time is provided for in this Chapter for either the Village of Mount Prospect or the Grantee to do or perform any act or obligation, neither party shall be liable for any delays due to: war; riot; insurrection; rebellion; strike; lockout; unavoidable casualty or damage to personnel, materials or equipment; fire; flood; storm; earthquake; tornado; orders of a court of competent jurisdiction; any act of God; or any cause beyond the control of said party. And, in any event, said time period shall be extended for the amount of time said party is so delayed. An act or omission shall not be deemed to be beyond a Grantee's control if committed, omitted, or caused by a corporation or other business entity which holds a controlling interest in the Grantee, whether held directly or indirectly. Further, the failure of a Grantee to obtain financing, or to pay any money due from it to any person, including the Board, for whatever reason, shall not be an act or omission which is "beyond the Grantee's control." .70. CABLE COM}~UNICATIONS 6.712 SECTION 6.709 ACCEPTANCE. This Chapter and the franchise and their terms and conditions shall be accepted by the Grantee by written instrument filed with the Village of Mount Prospect within thirty (30) days after the granting of the franchise, unless said period is extended by the Village of Mount Prospect at its sole discretion. In its acceptance, the Grantee shall declar~ that it has carefully read the terms and conditions of this Chapter and the franchise and accepts all of the terms and conditions imposed by this Chapter and the franchise and agrees to abide by same. SECTION 6.710 PUBLICATION COSTS. The Grantee shall assume ~he cost of publication of this Chapter and franchise and such is payable at the time of the Grantee's filing of acceptance as in Section 6.709 herein. SECTION 6.711 RESELLING SERVICE PROHIBITED. No person receiving within the Village any cable service, program or signal transmitted by a cable teleyision company operating under a franchise issued by the Village of Mount Prospect shall resell such service, program or signal without the expressed, written consent of both the Grantee and the Board. SECTION 6.712 PENALTIES It shall be unlawful for any person to attach or affix or to cause to be attached or affixed any equipment or device which allows access to or use of any cable television service without payment to the Grantee for same. Bo In addition to recover of any monies owed by Grantee to t'he Village of Mount Prospect or damages to the Village of Mount Prospect as a result of any acts or omissions by Grantee pursuant to the Cable Communications Code or Franchise, the Village of Mount Prospect in its sole discretion, may charge to and collect from the letter of credit or cash escrow provided for in Section 6.412, above, the following penalties: For failure to activate the system in accordance with the franchise agreement, unless the Village of Mount Prospect approves the delay, the penalty shall be Two Hundred Dollars ($200) per day for each day, or part thereof, such failure occurs or continues. o For failure to complete system construction, in accordance with Grantee's franchise, within the Primary Service Area, unless the Village of Mount Prospect approves the delay, the penalty shall be Two Hundred Dollars ($200) per day for each day, or part thereof, such failure occurs or continues. ABLE COM>fUNICATIONS For failure to provide data, documents, reports or information or to cooperate with the Village of Mount Prospect during any performance evaluation session 'provided for in Section 6.404. the penalty shall be Fifty Dollars ($50) per day for each day, or part thereof, such failure occurs or continues. For failure to test, analyze and report on the performance of the system following a request by the Village of Mount Prospect, the penalty shall be Fifty Dollars ($50) per day for each day, or part thereof, such failure occurs or continues. For failure by Grantee to modify the system or provide additional services wi~thin 'forty-five (45) days after required by the Village of Mount Prospect following a performance evaluation sessi'on the penalty shall be Two Hundred Dollars ($200) per day for each day, or part thereof, such failure occur or continues. For failure by Grantee to comply with construction, operation or maintenance standards with forty-five days (45) following notice from the Village of Mount Prospect, the penalty shall be Two Hundred Dollars ($200) per day for each day, or part thereof, such failure occurs or continues. C. Exclusive of the penalties set out above in this Section, persons, whether natural or artificial, or commercial entities who violate any of the provisions of this Chapter shall be subject to a fine not to exceed Five Hundred Dollars ($500) for each offense. Each day a violation continues or is permitted to exist shall constitute a separate and distinct offense. In addition to any penalty which may be imposed herein, the Village of Mount Prospect may initiate injunctive relief, including the issuance of temporary restraining orders and preliminary injunctions in the Circuit Court of Cook County, including Municipal Branch Districts within the jurisdiction of the Village of Mount Prospect, to abate any violation of this Chapter the continuation of which would be injurious to the welfare of the residents or which would frustrate or defeat the intent and purpose of this Chapter. SECTION 6.713 GRANTEE MAY PROMULGATE RULES. Grantee shall have the authority to promulgate such rules, regulations, terms and conditions of its business as shall be reasonably necessary to enable it to exercise its rights and perform its services under this Chapter and rules of the FCC, and to assure uninterrupted service to each and all of its subscribers. .713 CABLE COMMUNICATIONS 6.715 Such~rules and regulations shall not be deemed to have the force of law. Such rules and regulations shall be filed with the Village of Mount Prospect and shall not, unless the Village of Mount Prospect consents in writing to an earlier effective date, take effect~ until thrity (30) days after such filing. SECTION 6.714 DELEGATION OF POWERS. Any right, power or duty ~f the President and Board of Trustees of the Village of Mount Prospect, the Village Manager, the Agency, or any official of the Village of Mount Prospect under this Chapter may be transferred or delegated by ordinance, resolution, or other appropriate action of the Village of Mount Prospect to an appropriate officer, employee, or dep~rtment of the Village of Mount Prospect, or any legal authority, including any intergovernmental agency created for the purpose of regulating the operation and development of the cable television system. SECTION 6.715 SEVERABILITY. If any Section of this Chapter or the franchise, or any portion thereof, is held invalid or unconstitutional by any court of competent jurisdiction or administrative agency, such decision shall not affect the validity of the remaining portions hereof, except as otherwise provided for herein. ECTION TWO: Article VIII of Chapter 11 of the said Municipal Code of the Village of Mount~Prospect is hereby amended by deleting therefrom the wording "Conununity Antenna Television Systems - Reserved" and by substituting therefor the wording "Article VIII - Re served" . SECTION THREE: This Ordinance shall be in full force and effect from and after its passage, approval and publ'iCa~ion in pamphlet form, as provided by law. PASSED this 2 day of June ,'1981. AYES: Arthur, Farley, Floros, Miller, Wattenberg NAYS: None ABSENT: Murauskis APPROVED this 2 day of June , 1981. ~- ~ V~LLAGE PRESIDENT ATTE ST: VILLAGE CLERK