ANALYSIS

This ordinance reflects a transfer of the cable television system franchise for the Palmdale unincorporated area, granted by Ordinance No. 90-0118F to Harron Cablevision of Michigan, Inc. ("Franchisee"), and adds four additional terms/conditions to the franchise. First, the ordinance reserves the County's right, under specified conditions, to require that Franchisee provide nondiscriminatory access to its cable modem platform for unaffiliated internet access service providers. Second, the ordinance adds a requirement that Franchisee pay fees of five percent (5%) of gross annual revenues derived from cable modem internet service so long as such service qualifies as a "cable service" under applicable law. Third, the ordinance adds a requirement for a ten percent (10%) discount from the Expanded Basic Tier Rate for economically disadvantaged individuals should Franchisee discontinue its existing voluntary practice of offering a twenty percent (20%) discount to such individuals. Finally, the ordinance provides for Franchisee's installation of one free cable modem and internet service for each facility described in sections 16.68.020 and 16.68.030 of the Los Angeles County Code within the franchise Service Area. This ordinance is being adopted in conjunction with the County's consent to the transfer of the cable television franchise to Franchisee, a wholly owned subsidiary of Adelphia Communications Corporation.

LLOYD W. PELLMAN

By
LILLIAN D. SALINGER
Deputy County Counsel
Public Works Division
LDS:sh
8/30/00
I:\Salinger\Ordinances\OHarronPalmdale1.wpd

ORDINANCE NO.

An ordinance amending a franchise to provide cable television service in the Palmdale unincorporated area, granted by Ordinance No. 90-0118F.
The Board of Supervisors of the County of Los Angeles ordains as follows:

SECTION 1. Section 1 of Ordinance No. 90-0118F is amended to read as follows:

Section 1. Pursuant to Section 53066 of the Government Code of the State of California, the County of Los Angeles grants to Harron Cablevision of Michigan, Inc. ("Franchisee"), through October 28, 2005, the right, privilege and franchise is granted to Cable TV Fund 12-BCD Venture, dba Jones Intercable, (hereinafter called "Franchisee") to construct, from time to time and for the period of fifteen (15) years from the effective date of this ordinance, reconstruct, to maintain and to operate a Cable Television System (hereinafter called "System") in the unincorporated territory Service Area of the County of Los Angeles, described in Section 2 below, and to construct, reconstruct, maintain, operate, renew, repair and remove in the Service Area, described in Section 2 below, radio and television signal transmission lines and cables and all appurtenances and/or service connections (hereinafter jointly referred to as "Facilities") which are necessary or convenient for the provision of a System,. Ssaid grant being is subject to the faithful performance and observance by Franchisee of all the terms and conditions herein.

SECTION 2. Subsection E is added to Section 3 of Ordinance

No. 90-0118F to read as follows:
E. Upon deriving revenue from cable modem internet services, high-speed data services, or related services provided in connection with the System to subscribers residing in the franchise Service Area, Franchisee shall pay to the county franchise fees in the amount of five percent (5%) of the gross annual revenues that are received for such services by Franchisee, so long as the provision of cable modem internet services qualifies as a "cable service" under applicable law. Title 16, Division 4 of the Los Angeles County Code shall govern the timing and other aspects of these franchise fee payments to the county.

SECTION 3. Section 10 is added to Ordinance No. 90-0118F to read as follows:

Section 10. Franchisee currently has a voluntary program in which it provides a discount of twenty percent (20%) from the monthly Basic Tier Rates to economically disadvantaged customers through the Century Assistance Plan. If, at any time during the term of the franchise, this voluntary program is terminated or ceases to be offered, the following provisions shall apply:

A. Franchisee shall provide a discount of ten percent (10%) from the monthly Expanded Basic Tier Rates to: (i) any subscriber who supplies to Franchisee reasonable proof that he or she has been deemed exempt from the imposition of a utility user tax by the Treasurer and Tax Collector of the County of Los Angeles; or (ii) any other subscriber (including senior citizens, low-income individuals, or disabled persons) who supplies to Franchisee reasonable proof that he or she is participating in an economically disadvantaged plan offered by any public utility operating in the franchise Service Area.
B. Franchisee shall neither offset the value of the discount(s) described in this Section 10 against franchise fees owed to the county nor pass the cost of providing the discount(s) through to the county nor surcharge the county in connection with the discount(s).
C. Franchisee shall deliver written notice of the availability of the discount(s) discussed in this Section 10 to all subscribers. Such written notice shall be provided in bill inserts or other documents mailed to all subscribers. Throughout the term of the franchise, Franchisee shall continue providing notice of the discount(s) to all subscribers in all rate cards and all other documents sent to subscribers, pursuant to law or this franchise, which comprehensively address cable television service rates.

SECTION 4. Section 11 is added to Ordinance No. 90-0118F to read as follows:

Section 11. A. Pursuant to section 16.60.170(A)(4) of the

Los Angeles County Code, as a condition of granting its consent to the transfer of the franchise to Franchisee, and to the extent not restricted by preemptive federal or state law, the county reserves the right, at any time, to impose a requirement that Franchisee provide nondiscriminatory access to the cable modem platform of the System to providers of internet access services, whether or not such providers are affiliated with Franchisee, upon either of the following conditions:

B. In the event county exercises its right to impose a requirement that Franchisee provide nondiscriminatory internet access as described in subsection A above, the county reserves the right to impose such related requirements, to the extent permitted by applicable law and as it deems appropriate, provided Franchisee shall be provided with reasonable notice and an opportunity to be heard with respect to such requirements.

C. Notwithstanding the foregoing, nothing in this franchise, nor the county's failure to presently require nondiscriminatory access as a condition of its approval of the transfer of the franchise to Franchisee, shall prohibit or restrict the county's authority to impose such a requirement on Franchisee pursuant to any lawful authority and in accordance with any procedural requirements that may be applicable. Franchisee has not waived any rights, obligations, claims, defenses, or remedies regarding the county's imposition of a nondiscriminatory access requirement.

SECTION 5. Section 12 is added to Ordinance No. 90-0118F, as amended, to read as follows:

Section 12. A. Upon introducing commercial cable modem internet services, high-speed internet access service, or a related service in the franchise Service Area, Franchisee shall provide, at its sole expense, one cable modem and high-speed internet access service to each such cable modem at each facility or site described in sections 16.68.020 and 16.68.030 of the Los Angeles County Code which is located in the franchise Service Area. The cable modem and related equipment installed in these facilities or sites pursuant to this section will be used for educational or governmental purposes and shall not be connected to any network. Franchisee shall provide the installation, equipment, and service at no cost to the county or other entities operating facilities described in sections 16.68.020 and 16.68.030 of the Los Angeles County Code. Franchisee shall provide this equipment and high-speed internet access service within sixty days of receiving a written request from the county for this service and equipment, unless circumstances reasonably prevent the meeting of this deadline. In the event that circumstances prevent the meeting of this deadline, this service and equipment shall be provided within a reasonable period of time as determined by the Director of the Department of Consumer Affairs.

B. The cost and/or value of these cable modems and other services provided to the facilities or sites described in sections 16.68.020 and 16.68.030 of the Los Angeles County Code: (i) shall not constitute cable television franchise fees, as defined by federal or state law, the Los Angeles County Code, or this franchise; (ii) shall not be offset against cable television franchise fees owed to the county; and (iii) shall not be passed through to the county or to cable television customers residing in the franchise Service Area, by any means, including line itemization on a bill, bill surcharge, or any addition to a rate paid by such a customer.

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