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HomeMy WebLinkAboutOrdinance No. 0998 City of Medina, WA – Comcast 2021 Cable Franchise Agreement CITY OF MEDINA, WASHINGTON ORDINANCE NO. 998 AN ORDINANCE granting Comcast Cable Communications Management, LLC, the right, privilege, authority and franchise to construct, operate, maintain, reconstruct, repair and upgrade the Cable System upon, over, under, along, across and through the Franchise Area for the purpose of providing Cable Services, subject to the terms and conditions set forth in this Ordinance and applicable law. WHEREAS, the City of Medina (City) has a legitimate and necessary regulatory role in ensuring the availability of cable communications service, and reliability of cable systems in its jurisdiction, the availability of local programming (including public, educational and Governmental Access programming) and quality Customer service; and WHEREAS, diversity in Cable Service programming is an important policy goal and Grantee’s Cable System offers a wide range of programming services; and WHEREAS, the City is authorized by applicable law to grant one or more nonexclusive Franchises to construct, operate and maintain cable systems within the boundaries of the City; and WHEREAS, in consideration of the mutual promises made herein, and other good and valuable consideration as provided herein, the receipt and adequacy of which are hereby acknowledged, the City and Grantee do hereby agree as follows; NOW THEREFORE THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: City of Medina, WA – Comcast 2021 Cable Franchise Agreement Table of Contents CABLE FRANCHISE Between CITY OF MEDINA, WASHINGTON And COMCAST CABLE COMMUNICATIONS MANAGEMENT, LLC TABLE OF CONTENTS SECTION 1. - DEFINITIONS .......................................................................................... 2 1.1 “Access” or “Access Programming” ...................................................................... 2 1.2 “Access Channel” ................................................................................................. 2 1.3 “Activation” or “Activated” ..................................................................................... 2 1.4 “Affiliated Entity” or “Affiliate” ................................................................................ 2 1.5 “Bad Debt” ............................................................................................................ 2 1.6 “Basic Service” ..................................................................................................... 2 1.7 “Broadcast Signal” ................................................................................................ 2 1.8 “Cable Act”............................................................................................................ 3 1.9 “Cable Operator” ................................................................................................... 3 1.10 “Cable Service” ..................................................................................................... 3 1.11 “Cable System” ..................................................................................................... 3 1.12 “Capital Contribution” ............................................................................................ 3 1.13 “Channel” .............................................................................................................. 4 1.14 “City” ..................................................................................................................... 4 1.15 “Customer Service Representative” or “CSR”....................................................... 4 City of Medina, WA – Comcast 2021 Cable Franchise Agreement Table of Contents 1.16 “Designated Access Provider” .............................................................................. 4 1.17 “Downstream Channel” ......................................................................................... 4 1.18 “Dwelling Unit” ...................................................................................................... 4 1.19 “FCC” .................................................................................................................... 4 1.20 “Fiber Optic”.......................................................................................................... 4 1.21 “Franchise” ........................................................................................................... 4 1.22 “Franchise Area” ................................................................................................... 4 1.23 “Franchise Fee” .................................................................................................... 4 1.24 “Grantee” .............................................................................................................. 5 1.25 “Gross Revenues” ................................................................................................ 5 1.26 “Headend” or “Hub” .............................................................................................. 7 1.27 “Leased Access Channel” .................................................................................... 8 1.28 "Locally Scheduled Original Programming" .......................................................... 8 1.29 “Pay Service” or “Premium Service” ..................................................................... 8 1.30 “Person” ................................................................................................................ 8 1.31 “Rights-of-Way” .................................................................................................... 8 1.32 “Service Interruption” ............................................................................................ 8 1.33 “State” ................................................................................................................... 9 1.34 “Subscriber” or “Customer” ................................................................................... 9 1.35 “Tier” ..................................................................................................................... 9 1.36 “Video Programming” ........................................................................................... 9 SECTION 2. - GRANT OF FRANCHISE ......................................................................... 9 2.1 Grant .................................................................................................................... 9 2.2 Use of Rights-of-Way ......................................................................................... 10 2.3 Term ................................................................................................................... 11 2.4 Franchise Nonexclusive ..................................................................................... 11 2.5 Grant of Other Franchises .................................................................................. 12 2.6 Familiarity with Franchise ................................................................................... 13 2.7 Effect of Acceptance ........................................................................................... 14 2.8 Police Powers ..................................................................................................... 14 2.9 Franchise Area ................................................................................................... 14 City of Medina, WA – Comcast 2021 Cable Franchise Agreement Table of Contents 2.10 Reservation of Rights ......................................................................................... 14 SECTION 3. - FRANCHISE FEE AND FINANCIAL CONTROLS ................................ 15 3.1 Franchise Fee ..................................................................................................... 15 3.2 Payments ........................................................................................................... 15 3.3 Acceptance of Payment ...................................................................................... 15 3.4 Franchise Fee Reports ....................................................................................... 15 3.5 Audits ................................................................................................................. 15 3.6 Financial Records ............................................................................................... 16 3.7 Underpayments .................................................................................................. 16 3.8 Maximum Franchise Fee .................................................................................... 16 3.9 Payment on Termination .................................................................................... 16 3.10 Service Packages ............................................................................................... 17 3.11 Alternative Compensation .................................................................................. 17 3.12 Tax Liability......................................................................................................... 17 SECTION 4. - ADMINISTRATION AND REGULATION ............................................... 17 4.1 Rates and Charges ............................................................................................. 17 4.2 No Rate Discrimination ....................................................................................... 18 4.3 Filing of Rates and Charges ............................................................................... 18 4.4 Time Limits Strictly Construed ............................................................................ 18 4.5 Performance Evaluation ..................................................................................... 18 4.6 Leased Access Channel Rates........................................................................... 19 4.7 Late Fees ........................................................................................................... 19 SECTION 5. - FINANCIAL AND INSURANCE REQUIREMENTS ............................... 19 5.1 Indemnification ................................................................................................... 19 5.2 Insurance Requirements .................................................................................... 22 5.3 Security .............................................................................................................. 25 5.4 Bonds ................................................................................................................. 26 SECTION 6. - CUSTOMER SERVICE .......................................................................... 26 6.1 Customer Service Standards .............................................................................. 27 6.2 Subscriber Privacy .............................................................................................. 27 City of Medina, WA – Comcast 2021 Cable Franchise Agreement Table of Contents 6.3 Customer Service Agreement and Manual ......................................................... 27 SECTION 7. - REPORTS AND RECORDS .................................................................. 27 7.1 Open Records .................................................................................................... 27 7.2 Confidentiality ..................................................................................................... 28 7.3 Annual Reports ................................................................................................... 29 SECTION 8. - PROGRAMMING ................................................................................... 30 8.1 Broad Programming Categories ......................................................................... 30 8.2 Deletion of Broad Programming Categories ....................................................... 30 8.3 Obscenity ........................................................................................................... 30 8.4 Services for the Disabled .................................................................................... 30 8.5 Parental Control Device ...................................................................................... 30 8.6 Complimentary Cable Service ............................................................................ 31 8.7 New Technology ................................................................................................. 31 SECTION 9. - PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS .............. 31 9.1 Access Channels ................................................................................................ 31 9.2 Simulcast High Definition (HD) Access Channel ................................................ 32 9.3 Management and Control of Access Channels................................................... 33 9.4 Location and Quality of Access Channels .......................................................... 33 9.5 Access Channel Identification/Location/Relocation/Bill Insertions ...................... 34 9.6 Support for Access Capital Costs ....................................................................... 34 9.7 Technical Quality ................................................................................................ 35 9.8 Return Connectivity ............................................................................................ 36 9.9 Guide Selection .................................................................................................. 36 SECTION 10. - GENERAL RIGHT-OF-WAY USE AND CONSTRUCTION ................. 37 10.1 Construction ....................................................................................................... 37 10.2 Location of Facilities ........................................................................................... 38 10.3 Restoration of Rights-of-Way.............................................................................. 38 10.4 Maintenance and Workmanship ......................................................................... 39 10.5 Acquisition of Facilities ....................................................................................... 39 10.6 Relocation of Facilities ........................................................................................ 39 City of Medina, WA – Comcast 2021 Cable Franchise Agreement Table of Contents 10.7 Movement of Cable System Facilities for Other Entities ..................................... 41 10.8 Reservation of City Use of Right-of-Way ............................................................ 41 10.9 Rights-of-Way Vacation ...................................................................................... 41 10.10 Removal of Discontinued Facilities ..................................................................... 42 10.11 Hazardous Substances ...................................................................................... 42 10.12 Undergrounding of Cable ................................................................................... 42 10.13 Codes ................................................................................................................. 44 10.14 Tree Trimming .................................................................................................... 44 10.15 Standards ........................................................................................................... 44 10.16 Stop Work ........................................................................................................... 45 10.17 Work of Contractors and Subcontractors ............................................................ 45 10.18 Pole Transfers .................................................................................................... 46 10.19 Strand Mounted WiFi Facilities ........................................................................... 46 SECTION 11. - CABLE SYSTEM DESIGN .................................................................. 47 11.1 Cable System Specifications .............................................................................. 47 11.2 Closed Captioning .............................................................................................. 47 11.3 No Income Discrimination ................................................................................... 47 11.4 Enforceability of Design and Performance Requirements .................................. 47 11.5 System Review ................................................................................................... 47 SECTION 12. - TECHNICAL STANDARDS ................................................................. 48 12.1 Technical Performance ....................................................................................... 48 12.2 Cable System Performance Testing ................................................................... 48 SECTION 13. - SERVICE EXTENSION ........................................................................ 48 13.1 Service Availability .............................................................................................. 48 SECTION 14. - STANDBY POWER AND EAS ............................................................ 50 14.1 Standby Power ................................................................................................... 50 14.2 Emergency Alert Capability ................................................................................ 50 SECTION 15. - FRANCHISE BREACHES; TERMINATION OF FRANCHISE ............ 50 15.1 Procedure for Remedying Franchise Violations.................................................. 50 15.2 Alternative Remedies ......................................................................................... 52 City of Medina, WA – Comcast 2021 Cable Franchise Agreement Table of Contents 15.3 Assessment of Liquidated Damages and Letter of Credit ................................... 52 15.4 Revocation.......................................................................................................... 54 15.5 Abandonment; Purchase of the Cable System ................................................... 55 15.6 Removal ............................................................................................................. 55 SECTION 16. - FRANCHISE TRANSFER .................................................................... 56 16.1 Transfer of Ownership or Control ....................................................................... 56 SECTION 17. - PROHIBITED PRACTICES, LOCAL EMPLOYMENT EFFORTS AND NOTICES ................................................................................................... 58 17.1 Preferential or Discriminatory Practices Prohibited ............................................. 58 17.2 Notices ............................................................................................................... 58 SECTION 18. - MISCELLANEOUS PROVISIONS ....................................................... 59 18.1 Cumulative Rights .............................................................................................. 59 18.2 Costs to be Borne by Grantee ............................................................................ 59 18.3 Binding Effect ..................................................................................................... 59 18.4 Authority to Amend ............................................................................................. 59 18.5 Venue ................................................................................................................. 59 18.6 Governing Laws .................................................................................................. 59 18.7 Captions ............................................................................................................. 60 18.8 No Joint Venture ................................................................................................. 60 18.9 Waiver ................................................................................................................ 60 18.10 Severability ......................................................................................................... 60 18.11 Compliance with Federal, State and Local Laws ................................................ 60 18.12 Force Majeure .................................................................................................... 60 18.13 Entire Agreement ................................................................................................ 60 18.14 Attorneys’ Fees ................................................................................................... 61 18.15 Action of the City or Grantee .............................................................................. 61 18.16 Acceptance ......................................................................................................... 61 18.17 No Third-Party Beneficiaries ............................................................................... 61 18.18 Termination of Prior Franchise ........................................................................... 61 SECTION 19. - EFFECTIVE DATE ............................................................................... 61 City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 1 of 63 INTRODUCTORY STATEMENT CABLE TELEVISION FRANCHISE. This Cable Television Franchise is entered into in Medina, Washington, this ______ day of ______________, 2021, by and between the City of Medina, Washington a municipal corporation, hereinafter (the “the City”) and Comcast Cable Communications Management, LLC who is hereinafter known as (“Grantee”). The City and Grantee are sometimes referred to hereinafter collectively as the “parties.” City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 2 of 63 SECTION 1. - DEFINITIONS For the purposes of this Franchise and the Exhibits attached hereto the following terms, phrases, words and their derivations shall have the meanings given herein when indicated with the text of the Franchise by being capitalized. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. Words not defined, or those defined, but not capitalized within the text shall be given their common and ordinary meaning. The word “shall” is always mandatory and not merely directory. 1.1 “Access” or “Access Programming” includes Governmental or educational Access, collectively, and means the availability for Noncommercial use by various governmental and educational agencies, institutions and organizations, in the community, including the City and its designees, of particular channels on the Cable System to receive and distribute Video Programming to Subscribers, as permitted under applicable law. “Governmental Access” means Access where governmental institutions or their designees are the primary users having editorial control over programming and services. 1.2 “Access Channel” means any Channel or portion thereof, designated for Noncommercial Access purposes or otherwise made available to facilitate Access programming. 1.3 “Activation” or “Activated” means the status of any capacity on or part of the Cable System wherein the use of that capacity or part thereof may be made available without further installation of Cable System equipment other than Subscriber premise equipment, whether hardware or software. 1.4 “Affiliated Entity” or “Affiliate” when used in connection with Grantee means any Person who owns or controls, is owned or controlled by, or is under common ownership or control of Grantee. 1.5 “Bad Debt” means amounts lawfully owed by a Subscriber and accrued as revenues on the books of Grantee, but not collected after reasonable efforts by Grantee. 1.6 “Basic Service” means any Cable Service Tier that includes, at a minimum, the retransmission of local television Broadcast Signals. 1.7 “Broadcast Signal” means a television or radio signal transmitted over the air to a wide geographic audience, and received by a Cable System off-the-air by antenna, microwave, satellite dishes or any other means. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 3 of 63 1.8 “Cable Act” means the Cable Communications Policy Act of 1984, as amended by the Cable Television Consumer Protection and Competition Act of 1992, and as amended by the Telecommunications Act of 1996, and any amendments thereto. 1.9 “Cable Operator” means any Person or group of Persons, including Grantee, who provides Cable Service over the Cable System and directly or through one or more Affiliates owns a significant interest in such Cable System or who otherwise control(s) or is (are) responsible for, through any arrangement, the management and operation of the Cable System. 1.10 “Cable Service” means the one-way transmission to Subscribers of Video Programming, or other programming service and Subscriber interaction, if any, that is required for the selection or use of such Video Programming or other programming service. 1.11 “Cable System” means a facility, consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide Cable Service that includes Video Programming and that is provided to multiple Subscribers within a community, but such term does not include: (1) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (2) a facility that serves Subscribers without using any public right-of- way; (3) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the federal Communications Act (47 U.S.C. Section 201 et seq.), except that such facility shall be considered a cable system (other than for purposes of Section 621(c) (47 U.S.C. Section 541(c)) to the extent such facility is used in the transmission of Video Programming directly to Subscribers, unless the extent of such use is solely to provide interactive on-demand services; (4) an open video system that complies with Section 653 of the Cable Act; or (5) any facilities of any electric utility used solely for operating its electric utility systems. When used herein, the term “Cable System” shall mean Grantee’s Cable System in the Franchise Area unless the context indicates otherwise. 1.12 “Capital Contribution” means a fee required by this franchise for Access facilities pursuant to 47 U.S.C 542(g)(2)(C).” City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 4 of 63 1.13 “Channel” means a portion of the frequency band capable of carrying a Video Programming Service or combination of Video Programming Services, whether by analog or digital signal, on a twenty-four (24) hour per day basis or a portion thereof. 1.14 “City” means the City of Medina, Washington, a municipal corporation, of the State of Washington. 1.15 “Customer Service Representative” or “CSR” shall mean any person employed by Grantee to assist, or provide service to, Customers, whether by answering public telephone lines, writing service or installation orders, answering Customers’ questions, receiving and processing payments, or performing other Customer service-related tasks. 1.16 “Designated Access Provider” means the entity or entities designated by the City to manage or co-manage Access Channels and facilities. The City may be a Designated Access Provider. 1.17 “Downstream Channel” means a Channel capable of carrying a transmission from the Headend to remote points on the Cable System. 1.18 “Dwelling Unit” means any building or portion thereof that has independent living facilities, including provisions for cooking, sanitation and sleeping, and that is designed for residential occupancy. 1.19 “FCC” means the Federal Communications Commission or its lawful successor. 1.20 “Fiber Optic” means a transmission medium of optical fiber cable, along with all associated electronics and equipment capable of carrying electric lightwave pulses. 1.21 “Franchise” means the document, in which this definition appears, that is executed between the City and Grantee, containing the specific provisions of the authorization granted and the contractual and regulatory agreement created hereby. 1.22 “Franchise Area” means the area within the jurisdictional boundaries of the City, including any areas annexed by the City during the term of this Franchise. 1.23 “Franchise Fee” includes any tax, fee or assessment of any kind imposed by the City on Grantee City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 5 of 63 or Subscribers, or both solely because of their status as such. The term Franchise Fee does not include: (1) Any tax, fee or assessment of general applicability (including any such tax, fee, or assessment on both utilities and Cable Operators or their services, but not including a tax, fee, or assessment that is unduly discriminatory against Cable Operators or cable Subscribers); (2) Capital costs that are required by the Franchise to be incurred by Grantee for Educational or Governmental Access facilities, including the support required in Section 9.6; (3) Requirements or charges incidental to the awarding or enforcing of the Franchise, including but not limited to, payments for bonds, security funds, letters of credit, insurance, indemnification, penalties or liquidated damages; or (4) Any fee imposed under Title l7, United States Code. 1.24 “Grantee” means Comcast Cable Communications Management, LLC or its lawful successor, transferee or assignee. 1.25 “Gross Revenues” 1.25.1 “Gross Revenues” means, and shall be construed broadly to include all revenues derived directly or indirectly by Grantee and/or an Affiliated Entity that is the cable operator of the Cable System, from the operation of Grantee’s Cable System to provide Cable Services within the City. Gross Revenues include, by way of illustration and not limitation: (1) monthly fees for Cable Services, regardless of whether such Cable Services are provided to residential or commercial customers, including revenues derived from the provision of all Cable Services (including but not limited to pay or premium Cable Services, digital Cable Services, pay-per-view, pay-per-event, and video-on-demand Cable Services); (2) installation, reconnection, downgrade, upgrade, or similar charges associated with changes in subscriber Cable Service levels; (3) fees paid to Grantee for channels designated for commercial/leased access use and shall be allocated on a pro rata basis using total Cable Service subscribers within the City; (4) converter, remote control, and other Cable Service equipment rentals, leases, or sales; (5) Advertising Revenues as defined herein; City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 6 of 63 (6) late fees, convenience fees, and administrative fees, which shall be allocated on a pro rata basis using Cable Services revenue as a percentage of total subscriber revenues within the City; (7) revenues from program guides; (8) Franchise Fees; (9) FCC Regulatory Fees; (10) commissions from home shopping channels and other Cable Service revenue sharing arrangements which shall be allocated on a pro rata basis using total Cable Service subscribers within the City; and (11) any Cable Service revenues that may develop in the future, whether or not anticipated, and consistent with GAAP. 1.25.2 “Advertising Revenues” shall mean revenues derived from sales of advertising that are made available to Grantee’s Cable System Subscribers within the City and shall be allocated on a pro rata basis using Grantee’s Cable System Subscribers within the Franchise Area in relation to the total number of Grantee’s Cable Service subscribers covered under the advertising arrangement. Additionally, Grantee agrees that Gross Revenues subject to franchise fees shall include all commissions, representative fees, Affiliated Entity fees, or rebates paid to National Cable Communications (“NCC”) and Comcast Effectv (“Effectv”) or their successors associated with sales of advertising on the Cable System within the City allocated according to this paragraph using total Cable Service Subscribers reached by the advertising. 1.25.3 “Gross Revenues” shall not include: (1) actual bad debt write-offs, except any portion which is subsequently collected which shall be allocated on a pro rata basis using Cable Services revenue as a percentage of total subscriber revenues within the City; (2) any taxes and/or fees on services furnished by Grantee imposed by an municipality, state, or other governmental unit, provided that Franchise Fees and the FCC regulatory fee shall not be regarded as such a tax or fee; (3) fees imposed by any municipality, state, or other governmental unit on Grantee, including but not limited to Public, Educational and Governmental (PEG) Fees; (4) launch fees and marketing co-op fees; and (5) unaffiliated third-party advertising sales agency fees which are reflected as a deduction from revenues. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 7 of 63 1.25.4 To the extent revenues are received by Grantee for the provision of a discounted bundle of services which includes Cable Services and non- Cable Services, Grantee shall calculate revenues to be included in Gross Revenues using a methodology that allocates revenue on a pro rata basis when comparing the bundled service price and its components to the sum of the published rate card, except as required by specific federal, state, or local law. It is expressly understood that equipment may be subject to inclusion in the bundled price at full rate card value. This calculation shall be applied to every bundled service package containing Cable Service from which Grantee derives revenues in the City. To the extent discounts reduce revenues includable for purposes of calculating Franchise Fees, Grantee may not unfairly or unlawfully allocate discounts for bundled services for the purpose of evading payment of Franchise Fees to the City. The City reserves its right to review and to challenge Grantee’s calculations. 1.25.5 Grantee reserves the right to change the allocation methodologies set forth in this definition of Gross Revenues in order to meet the standards required by governing accounting principles as promulgated and defined by the Financial Accounting Standards Board (“FASB”), Emerging Issues Task Force (“EITF”) and/or the U.S. Securities and Exchange Commission (“SEC”). Grantee will explain and document the required changes to the City within sixty (60) days of making such changes, and as part of any audit or review of Franchise Fee payments, and any such changes shall be subject to 1.25.6 below. 1.25.6 Resolution of any disputes over the classification of revenue should first be attempted by agreement of the Parties, but should no resolution be reached, the Parties agree that reference shall be made to generally accepted accounting principles (“GAAP”) as promulgated and defined by the FASB, EITF and/or the SEC. Notwithstanding the forgoing, the City reserves its right to challenge Grantee’s calculation of Gross Revenues, including the application of GAAP to Franchise Fees and the interpretation of GAAP as promulgated and defined by the FASB, EITF and/or the SEC. 1.25.7 For the purposes of determining Gross Revenue Grantee shall use the same method of determining revenues under GAAP as that which Grantee uses in determining revenues for the purpose of reporting to national and state regulatory agencies. 1.26 “Headend” or “Hub” means any Facility for signal reception and dissemination on a Cable System, including cable, antennas, wires, satellite dishes, monitors, switchers, modulators, processors for Broadcast Signals or other signals, and all other related equipment and Facilities. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 8 of 63 1.27 “Leased Access Channel” means any Channel or portion of a Channel commercially available for programming in accordance with Section 612 of the Cable Act. 1.28 "Locally Scheduled Original Programming" means Government Access or educational Access programming that is created by the City or their designated access provider(s) including edited coverage of live programming. Such Locally Scheduled Original Programming shall not be considered as qualifying as such after three (3) cablecasts (initial, first repeat, second repeat and third repeat). Automated Video Programming filler, such as cablecasts of highways and roads, or video bulletin boards does not constitute Locally Scheduled Original Programming that qualifies herein. 1.29 “Pay Service” or “Premium Service” means Video Programming or other programming service choices (such as movie Channels or pay-per-view programs) offered to Subscribers on a package tier, per-Channel, per-program or per-event basis. 1.30 “Person” means any natural person, sole proprietorship, partnership, joint venture, association, or limited liability entity or corporation, or any other form of entity or organization. 1.31 “Rights-of-Way” means land acquired or dedicated for public roads and streets including easements dedicated for compatible use and consistent with Section 621 of the Cable Act, but does not include: (1) State highways; (2) Land dedicated for roads, streets, and highways not opened and not improved for motor vehicle use by the public, unless specifically used as a utility corridor; (3) Structures, including poles and conduits, located within the right- of-way; (4) Federally granted trust lands or forest board trust lands; (5) Lands owned or managed by the state parks and recreation commission; or (6) Federally granted railroad rights-of-way acquired under 43 U.S.C. Sec. 912 and related provisions of federal law that are not open for motor vehicle use. 1.32 “Service Interruption” means the loss of picture or sound on one or more cable Channels. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 9 of 63 1.33 “State” means the State of Washington. 1.34 “Subscriber” or “Customer” means any Person who lawfully receives Cable Services provided by Grantee by means of the Cable System with Grantee’s express permission. 1.35 “Tier” means a category of Cable Services provided by Grantee for which a separate rate is charged. 1.36 “Video Programming” means programming provided by, or generally considered comparable to programming provided by, a television broadcast station, or cable programming provider. SECTION 2. - GRANT OF FRANCHISE 2.1 Grant 2.1.1 The City hereby grants to Grantee a nonexclusive authorization to make reasonable and lawful use of the Rights-of-Way within the Franchise Area to construct, operate, maintain, reconstruct, repair and upgrade the Cable System for the purpose of providing Cable Services, subject to the terms and conditions set forth in this Franchise and applicable law. This Franchise shall constitute both a right and an obligation to fulfill the obligations set forth in the provisions of this Franchise. 2.1.2 Grantee, through this Franchise, is granted the right to operate its Cable System using the public Rights-of-Way within the Franchise Area in compliance with all lawfully enacted applicable construction codes and regulations. This Franchise is intended to convey limited rights and interests only as to those streets in which the City has an actual interest. It is not a warranty of title or interest in any Right-of-Way; it does not provide Grantee any interest in any particular location within the Right- of-Way; and it does not confer rights other than as expressly provided in the grant hereof. This Franchise does not deprive the City of any powers, rights or privileges it now has, or may later acquire in the future, to use, perform work on or to regulate the use of and to control the City’s streets covered by this Franchise, including without limitation the right to perform work on its roadways, Right-of-Way or appurtenant drainage facilities, including constructing, altering, paving, widening, grading, or excavating thereof. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 10 of 63 2.1.3 This Franchise is subject to and shall be governed by all applicable provisions now existing or hereafter amended of federal, State and local laws and regulations, including but not limited to the Medina Municipal Code and general engineering design and development standards. This Franchise is subject to the general lawful police power of the City affecting matters of municipal concern. Nothing in this Franchise shall be deemed to waive the requirements of the other codes and ordinances of general applicability enacted, or hereafter enacted, by the City, including but not limited to MMC Chapter 5.08. Grantee agrees to comply with the provisions of the City ordinances provided that in the event of a conflict between the provisions of ordinances and the Franchise, the express provisions of the Franchise shall govern. 2.1.4 Grantee agrees, as a condition of exercising the privileges granted by this Franchise, that any Affiliate of Grantee that is a Cable Operator of the Cable System in the Franchise Area, as defined herein, or directly involved in the management or operation of the Cable System in the Franchise Area, will comply with the terms and conditions of this Franchise. 2.1.5 No rights shall pass to Grantee by implication. Without limiting the foregoing, by way of example and not limitation, this Franchise shall not include or be a substitute for: (1) Any other permit or authorization required for the privilege of transacting and carrying on a business within the City that may be required by the ordinances and laws of the City. (2) Any permit, agreement or authorization required by the City for Rights-of-Way users in connection with operations on or in Rights- of-Way or public property; or (3) Any permits or agreements for occupying any other property of the City or private entities to which access is not specifically granted by this Franchise. 2.1.6 This Franchise authorizes Grantee to engage in providing Cable Service, as that term is defined in 47 U.S.C. Sec. 522(6), as amended. Neither the City nor the Grantee waive any rights they may have under applicable law as to the lawful use of the Cable System for other services and the regulatory obligations related to such services. 2.2 Use of Rights-of-Way 2.2.1 Grantee may erect, install, construct, repair, replace, reconstruct, and retain in, on, over, under, upon, across, through, below and along the Rights-of-Way within the Franchise Area, such wires, cables (both coaxial and Fiber Optic), conductors, ducts, conduit, vaults, manholes, City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 11 of 63 amplifiers, appliances, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of a Cable System for the provision of Cable Service within the Franchise Area. Grantee shall comply with all applicable construction codes, laws, ordinances, regulations and procedures regarding placement and installation of Cable System facilities in the Rights-of Way. 2.2.2 Grantee must follow the City-established requirements, as well as all the City codes, ordinances and other regulations regarding placement of Cable System facilities in Rights-of-Way, including the specific location of facilities in the Rights-of-Way. Grantee must in any event install Cable System facilities in a manner that minimizes interference with the use of the Rights-of-Way by others, including others that may be installing communications facilities. To protect public health, safety and welfare, the City may require that Cable System facilities be installed at a particular time, at a specific place or in a particular manner as a condition of access to a particular Rights-of-Way; may deny access if Grantee is not willing to comply with the City’s requirements; and may remove, or require removal of, any facility that is not installed in compliance with the requirements established by the City, or that is installed without prior City approval of the time, place or manner of installation (including charging Grantee for all the costs associated with removal); and the City may require Grantee to cooperate with others to minimize adverse impacts on the Rights-of-Way through joint trenching and other arrangements. Grantee shall assume its costs (in accordance with applicable law) associated with any requirement of the City in the exercise of its police powers, to relocate its Cable System facilities located in the Rights-of-Way. 2.3 Term 2.3.1 This Franchise and the rights, privileges, and authority granted hereunder and the contractual relationship established hereby shall remain in full force and effect for a period of ten (10) years from and after the effective date of this Ordinance, as specified in SECTION 19. - , subject to acceptance of this Franchise by Grantee pursuant to 18.16. 2.3.2 The grant of this Franchise shall have no effect on any ordinance in effect prior to the effective date of this Franchise to indemnify or insure the City against acts and omissions occurring during the period that the prior franchise was in effect, nor shall it have any effect upon liability to pay all Franchise Fees (for any prior years) that were due and owed under a prior franchise and the franchise ordinance. 2.4 Franchise Nonexclusive This Franchise shall be nonexclusive, and subject to all prior rights, interests, easements, or franchises granted by the City or its predecessors to any Person City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 12 of 63 to use any property, Right-of-Way, easement, including the right of the City to use same for any purpose it lawfully deems fit, including the same or similar purposes allowed Grantee hereunder. The City may at any time grant authorization to use the Rights-of-Way for any purpose not incompatible with Grantee’s authority under this Franchise and for such additional franchises for Cable Systems, as the City deems appropriate. 2.5 Grant of Other Franchises 2.5.1 Grantee acknowledges and agrees that the City reserves the right to grant one or more additional franchises subsequent to this Franchise to provide Cable Service or wireline video programming service within the Franchise Area; provided, the City agrees that it shall amend this Franchise to include any material terms or conditions that it makes available to the new entrant within ninety (90) days of Grantee’s request, so as to ensure that the regulatory and financial burdens on each entity are materially equivalent. “Material terms and conditions” include but are not limited to: Franchise Fees; insurance; system build- out requirements; security instruments; Access Channels and support; customer service standards; required reports and related record keeping; and notice and opportunity to cure breaches. The parties agree that this provision shall not require a word-for-word identical franchise or authorization so long as the regulatory and financial burdens on each entity are materially equivalent. Video Programming services delivered over wireless broadband networks are specifically exempted from the requirements of this Section so long as the City does not have lawful authority to regulate such wireless broadband networks within the Franchise Area. 2.5.2 The modification process of this Franchise as provided in the preceding paragraph shall only be initiated by written notice by Grantee to the City regarding specified franchise obligations. Grantee’s notice shall address the following: (1) identifying the specific terms or conditions in the competitive cable services franchise which are materially different from Grantee’s obligations under this Franchise; (2) identifying the Franchise terms and conditions for which Grantee is seeking amendments; (3) providing text for any proposed Franchise amendments to the City, and (4) a written explanation of why the proposed amendments are necessary. 2.5.3 Upon receipt of Grantee’s written notice as provided in Section 2.5.2, the City and Grantee agree that they will use best efforts in good faith to City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 13 of 63 negotiate Grantee’s proposed Franchise modifications, and that such negotiation will proceed and conclude within a ninety (90) day time period, unless that time period is reduced or extended by mutual agreement of the parties. If the City and Grantee reach agreement on the Franchise modifications pursuant to such negotiations, then the parties shall amend this Franchise to include the modifications. Notwithstanding any modification of this Franchise pursuant to the provisions of this Section 2.5, should any entity, whose authorization to provide Cable Services or similar wireline video programming service resulted in a triggering of the amendments under this Section, fail or cease to provide such services within the City, the City may provide ninety (90) days’ written notice to Grantee of such fact, and the City and Grantee shall enter into good faith negotiations to determine the original terms, conditions and obligations of this Franchise shall be reinstated and fully effective. 2.5.4 In the event an application for a new cable television franchise is filed with the City proposing to serve the Franchise Area, in whole or in part, the City shall provide notice of such application to the Grantee. 2.5.5 In the event that a wireline multichannel video programming distributor, legally authorized by state or federal law, makes available for purchase by Subscribers or customers, Cable Services or wireline video services within the City without a Cable Service franchise or other similar lawful authorization granted by the City, then Grantee shall have a right to request Franchise amendments that relieve the Grantee of regulatory burdens that create a competitive disadvantage to Grantee. In requesting amendments, Grantee shall file a petition seeking to amend this Franchise. Such petition shall: (1) indicate the presence of such wireline competitor; (2) identify the Franchise terms and conditions for which Grantee is seeking amendments; (3) provide the text of all proposed Franchise amendments to the City, (4) identify all material terms or conditions in the applicable state or federal authorization which are substantially more favorable or less burdensome to the competitive entity. (5) The City shall not unreasonably withhold consent to Grantee’s petition. 2.6 Familiarity with Franchise Grantee acknowledges and warrants by acceptance of the rights, privileges and agreement granted herein, that it has carefully read and fully comprehends the terms and conditions of this Franchise and is willing to and does accept all reasonable risks of the meaning of the provisions, terms and conditions herein. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 14 of 63 Grantee further acknowledges and states that it has fully studied and considered the requirements and provisions of this Franchise, and finds that the same are commercially practicable at this time and consistent with all local, State and federal laws and regulations currently in effect, including the Cable Act. 2.7 Effect of Acceptance By accepting the Franchise, Grantee: (1) acknowledges and accepts the City’s legal right to issue and enforce the Franchise; (2) agrees that it will not oppose the City’s intervening to the extent it is legally entitled to do so in any legal or regulatory proceeding affecting the Cable System; (3) accepts and agrees to comply with each and every provision of this Franchise subject to applicable law; and (4) agrees that the Franchise was granted pursuant to processes and procedures consistent with applicable law, and that it will not raise any claim to the contrary. 2.8 Police Powers Grantee’s rights hereunder are subject to the police powers of the City to adopt and enforce ordinances necessary to protect the safety, health and welfare of the public, and Grantee agrees to comply with all applicable laws, ordinances and regulations lawfully enacted pursuant to the police powers of the City, or hereafter enacted in accordance therewith, by the City or any other legally constituted governmental unit having lawful jurisdiction over the subject matter hereof. The City reserves the right to exercise its police powers, notwithstanding anything in this Franchise to the contrary. 2.9 Franchise Area Grantee shall provide Cable Services, as authorized under this Franchise, within the Franchise Area in accordance with line extension and density provisions as provided herein. 2.10 Reservation of Rights Nothing in this Franchise shall (1) abrogate the right of the City to perform any public works or public improvements of any description, (2) be construed as a waiver of any codes or ordinances of general applicability promulgated by the City, or (3) be construed as a waiver or release of the rights of the City in and to the Rights-of-Way. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 15 of 63 SECTION 3. - FRANCHISE FEE AND FINANCIAL CONTROLS 3.1 Franchise Fee As compensation for the use of the City’s Rights-of-Way, Grantee shall pay as a Franchise Fee to the City, throughout the duration of this Franchise, an amount equal to four percent (4%) of Grantee’s Gross Revenues or such greater or lesser percentage subject to subsection 3.8 below. Grantee shall, upon written request of the City, pay a franchise fee to the City in an amount not to exceed five percent (5%) of Grantee’s Gross Revenues. Accrual of such franchise fees shall commence within thirty (30) days from the City’s written notification to Grantee. 3.2 Payments Grantee's Franchise Fee payments to the City shall be computed quarterly for the preceding quarter. Each quarterly payment shall be due and payable no later than forty-five (45) days after the end of the preceding quarter. The quarters shall end respectively on the last day of March, June, September and December. 3.3 Acceptance of Payment No acceptance of any payment shall be construed as an accord by the City that the amount paid is, in fact, the correct amount, nor shall any acceptance of payments be construed as a release of any claim the City may have for further or additional sums payable or for the performance of any other obligation of Grantee. 3.4 Franchise Fee Reports 3.4.1 Each payment shall be accompanied by a written report to the City on a form commonly used by Grantee, verified by an officer of Grantee, containing an accurate statement in summarized form, of Grantee’s Gross Revenues and the computation of the payment amount. Such reports shall include all Gross Revenues of the Cable System. 3.5 Audits No more than on an annual basis, upon thirty (30) days’ prior written notice, the City shall have the right to conduct an independent audit of Grantee’s financial records necessary to enforce compliance with this Franchise and to calculate any amounts determined to be payable under this Franchise. Provided Grantee cooperates in making all relevant records available upon request, the City will in good faith attempt to complete each audit within six (6) months, and the audit period shall not be any greater than the previous six (6) years. Any additional amounts due to the City as a result of the audit shall be paid within sixty (60) days following written notice to Grantee, and Grantee’s agreement that the audit findings are correct, which notice shall include a copy of the audit findings. If a Franchise Fee underpayment is discovered as the result of an audit, Grantee shall pay, in addition to the amount due, interest at the maximum allowed rate as provided under State law calculated from the date the underpayment was City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 16 of 63 originally due until the date the City receives the payment. If the audit shows that Franchise Fees have been underpaid, by five percent (5%) or more in a calendar year, Grantee shall pay the cost of the audit in an amount up to $12,500 for the first year of the audit and $5,000 for the next two years of the audit period. 3.6 Financial Records Grantee agrees to meet with a representative of the City upon request to review Grantee’s methodology of record-keeping, financial reporting, the computing of Franchise Fee obligations and other procedures, the understanding of which the City deems necessary for reviewing reports and records that are relevant to the enforcement of this Franchise. 3.7 Underpayments In the event any payment is not received within forty-five (45) days from the end of the scheduled payment period, Grantee shall pay, in addition to the amount due, interest at the maximum allowed rate as provided under State law calculated from the date the underpayment was originally due until the date the City receives the payment. The period of limitation for recovery of franchise fees payable hereunder shall be six (6) years from the date on which payment by the Grantee was due. 3.8 Maximum Franchise Fee The parties acknowledge that, at present, applicable federal law limits the City to collection of a Franchise Fee of five percent (5%) of Gross Revenues in any twelve (12) month period. In the event that at any time throughout the term of this Franchise, the City is authorized to collect an amount in excess of five percent (5%) of Gross Revenues in any twelve (12) month period, the parties hereby agree to amend the Franchise after written notice to Grantee, and a public meeting to discuss same, provided that all wireline cable systems in the Franchise Area over which the City has jurisdiction are treated in an equivalent manner. In the event that at any time throughout the term of this Franchise, the City is limited by federal law to collecting an amount which is less than five percent (5%) of Gross Revenues in any twelve (12) month period, Grantee may request reduction of the Franchise Fee payments to the City in accordance with federal law and the parties hereby agree to amend the Franchise unless the City would be covered under grandfathered provisions under federal law to keep the Franchise Fee at five percent (5%) of Gross Revenues. 3.9 Payment on Termination If this Franchise terminates for any reason, Grantee shall file with the City within ninety (90) calendar days of the date of the termination, a financial statement, certified by an independent certified public accountant, showing the Gross Revenues received by Grantee since the end of the previous fiscal year. Within forty five (45) days of the filing of the certified statement with the City, Grantee shall pay any unpaid amounts as indicated. If Grantee fails to satisfy its remaining financial obligations as required in this Franchise, the City may do so by utilizing the funds available in a letter of credit or other security provided by City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 17 of 63 Grantee pursuant to Section 5.3 or may exercise any other remedies provided to the City in law or equity to collect on such financial obligations. 3.10 Service Packages In addition to the requirements elsewhere in this Franchise, City acknowledges that, during the term of this Franchise, Grantee may offer to its Subscribers, at a discounted rate, a bundled or combined package of services consisting of Cable Services, which are subject to the Franchise Fee referenced above, and other services that are not subject to that Franchise Fee. To the extent discounts reduce revenues includable for purposes of calculating Franchise Fees, Grantee may not unfairly or unlawfully allocate discounts for bundled services for the purpose of evading payment of Franchise Fees to the City. As between Cable Services and non-Cable Services, revenues shall be allocated on a pro rata basis. If a dispute arises between the parties regarding this matter, City and Grantee will meet within twenty (20) days’ notice and discuss such matters in good faith in an attempt to reach a reasonable compromise thereof. 3.11 Alternative Compensation In the event that Franchise Fees are prohibited by any law or regulation, Franchisee shall pay to the City that amount, if any, which is determined by applicable law. 3.12 Tax Liability The Franchise Fees shall be in addition to any and all taxes or other levies or assessments which are now or hereafter required to be paid by businesses by any law of the City, the State or the United States including, without limitation, sales, use, utility, property, permits and other taxes, or business license fees. SECTION 4. - ADMINISTRATION AND REGULATION The City shall be vested with the power and right to administer and enforce this Franchise and the regulations and requirements of applicable law, including the Cable Act, or to delegate that power and right of administration, or any part thereof, to the extent permitted under federal, State and local law, to any agent in the sole discretion of the City. 4.1 Rates and Charges Grantee rates and charges related to or regarding Cable Services shall be subject to regulation by the City to the full extent authorized by applicable federal, State and local laws. Customer billing shall be itemized by service(s) per FCC Regulation 76.309(B)(ii)(A) and 76.1619 or as amended. Grantee shall comply with all applicable laws regarding rates for Cable Services and all applicable laws covering issues of cross subsidization. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 18 of 63 4.2 No Rate Discrimination All Grantee rates and charges shall be published (in the form of a publicly- available rate card), made available to the public, and shall be non-discriminatory as to all Persons of similar classes, under similar circumstances and conditions. Grantee shall not deny cable service or otherwise discriminate against customers or others. Grantee shall apply its rates in accordance with governing law. Nothing herein shall be construed to prohibit: (1) The temporary reduction or waiving of rates or charges in conjunction with promotional campaigns; (2) The offering of reasonable discounts to similarly situated Persons; (3) The offering of rate discounts for either Cable Service generally; or (4) The offering of bulk discounts for Multiple Dwelling Units. 4.3 Filing of Rates and Charges Throughout the term of this Franchise, Grantee shall maintain on file with the City a complete schedule of applicable rates and charges for Cable Services provided under this Franchise. Nothing in this subsection shall be construed to require Grantee to file rates and charges under temporary reductions or waivers of rates and charges in conjunction with promotional campaigns. 4.4 Time Limits Strictly Construed Whenever this Franchise sets forth a time for any act to be performed by Grantee, such time shall be deemed to be of the essence, and any failure of Grantee to perform within the allotted time may be considered a breach of this Franchise. 4.5 Performance Evaluation 4.5.1 Performance evaluation sessions may be held at any time upon request by the City during the term of this Franchise following Grantee’s repeated failure to comply with the terms of this Franchise or no more than once in any annual period. 4.5.2 All evaluation sessions shall be open to the public and announced at least one week in advance in a newspaper of general circulation in the Franchise Area. 4.5.3 Topics that may be discussed at any evaluation session may include those issues surrounding Grantee’s failure to comply with the terms of the Franchise, provided that nothing in this subsection shall be construed as requiring the renegotiation of this Franchise or any term or provision therein and further provided that this subsection need not be followed before other legal or equitable remedies within this Franchise. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 19 of 63 4.5.4 During evaluations under this subsection, Grantee agrees to participate in such evaluation sessions described in this Section 4.5 and to provide such information or documents as the City may request to perform the evaluation. 4.6 Leased Access Channel Rates Upon request, Grantee shall provide a complete schedule of current rates and charges for any and all Leased Access Channels, or portions of such Channels, provided by Grantee. 4.7 Late Fees 4.7.1 For purposes of this subsection, any assessment, charge, cost, fee or sum, however, characterized, that Grantee imposes upon a Subscriber solely for late payment of a bill is a late fee and shall be applied in accordance with applicable local, State and federal laws. 4.7.2 Grantee’s late fee and disconnection policies and practices shall be nondiscriminatory, and such policies and practices, and any fees imposed pursuant to this subsection, shall apply equally in all parts of the City without regard to the neighborhood or income level of the subscribers. SECTION 5. - FINANCIAL AND INSURANCE REQUIREMENTS 5.1 Indemnification 5.1.1 General Indemnification Grantee, at its sole cost and expense, shall indemnify, defend and hold the City, its officers, officials, boards, commissions, authorized agents, representatives, and employees, harmless from any action or claim for injury, damage, loss, liability, settlement, proceeding, judgment, or cost or expense, including court and appeal costs and attorneys’ fees and expenses, arising from any acts, errors, or omissions, or from the conduct of Grantee’s business, including all damages in any way arising out of, or by reason of, any construction, excavation, erection, operation, maintenance, repair or reconstruction, or any other act done under this Franchise, by or for Grantee, its authorized agents, or by reason of any neglect or omission of Grantee its authorized agents or its employees, except only such injury or damage as shall have been occasioned by the sole negligence or intentional misconduct of the City. Grantee shall consult and cooperate with the City while conducting its defense of the City. Said indemnification obligations shall extend to any settlement made by Grantee. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 20 of 63 5.1.2 Concurrent Negligence However, should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Grantee and the City, its officers, officials, employees, and volunteers, the Grantee’s liability hereunder shall be only to the extent of the Grantee’s negligence. 5.1.3 Indemnification for Relocation Grantee shall indemnify, defend and hold the City, its elected officials, officers, authorized agents, boards, and employees, harmless for any damages, claims, additional costs, or expenses payable by, the City related to, arising out of, or resulting from Grantee’s failure to remove, adjust or relocate any of its facilities in the Rights-of-Way in a timely manner in accordance with any lawful relocation required by the City. Pursuant to Section 5.1.1, the provisions of this Section 5.1.3 shall specifically include, but are not limited to, claims for delay, damages, costs, and/or time asserted by any contractor performing public work for or on behalf of the City. 5.1.4 Additional Circumstances Grantee shall also indemnify, defend and hold the City harmless for any claim for injury, damage, loss, liability, cost and expense, including court and appeal costs and attorneys’ fees and expenses in any way arising out of any failure by Grantee to secure consents from the owners, authorized distributors or franchisees/licensors of programs to be delivered by the Cable System, provided however, that Grantee will not be required to indemnify the City for any claims arising out of the use of Access Channels by the City and/or its Designated Access Providers or use by the City of the Emergency Alert Cable System. 5.1.5 Procedures and Defense If a claim or action arises, the City or any other indemnified party shall tender the defense of the claim or action to Grantee, which defense shall be at Grantee’s expense. The City may participate in the defense of a claim and, in any event, Grantee may not agree to any settlement of claims financially affecting the City without the City’s written approval that shall not be unreasonably withheld. 5.1.6 Duty of Defense The fact that Grantee carries out any activities under this Franchise through independent contractors shall not constitute an avoidance of or defense to Grantee’s duty of defense and indemnification under this Section 5.1. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 21 of 63 5.1.7 Duty to Give Notice The City shall give Grantee timely written notice of any claim or of the commencement of any action, suit or other proceeding covered by the indemnity in this Section. The City’s failure to so notify and request indemnification shall not relieve Grantee of any liability that Grantee might have, except to the extent that such failure prejudices Grantee’s ability to defend such claim or suit. In the event any such claim arises, the City or any other indemnified party shall tender the defense thereof to Grantee and Grantee shall have the obligation and duty to defend any claims arising thereunder, and the City shall cooperate fully therein. 5.1.8 Separate Representation If separate representation to fully protect the interests of both parties is necessary, such as a conflict of interest between the City and the counsel selected by Grantee to represent the City, Grantee shall select other counsel without conflict of interest with the City. 5.1.9 Prior Franchises The grant of this Franchise shall have no effect on Grantee’s duty under the prior franchises to indemnify or insure the City against acts and omissions occurring during the period that the prior franchises were in effect, nor shall it have any effect upon Grantee’s liability to pay all Franchise Fees which were due and owed under prior franchises. 5.1.10 Waiver of Title 51 RCW Immunity Grantee’s indemnification obligations shall include indemnifying the City for actions brought by Grantee’s own employees and the employees of Grantee’s agents, representatives, contractors, and subcontractors even though Grantee might be immune under Title 51 RCW from direct suit brought by such an employee. It is expressly agreed and understood that this indemnification for actions brought by the aforementioned employees is limited solely to claims against the City arising by virtue of Grantee’s exercise of the rights set forth in this Franchise. To the extent required to provide this indemnification and this indemnification only, Grantee waives its immunity under Title 51 RCW as provided in RCW 4.24.115; provided however, the forgoing waiver shall not in any way preclude Grantee from raising such immunity as a defense against any claim brought against Grantee by any of its employees or other third party. The obligations of Grantee under this Section 5.1.10 have been mutually negotiated by the parties hereto. 5.1.11 Inspection Inspection or acceptance by the City of any work performed by Grantee at the time of completion of construction or maintenance projects shall not be grounds for avoidance of any of these covenants of indemnification. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 22 of 63 5.1.12 Damage to Grantee Facilities Notwithstanding any other provisions of this Section 5.1, Grantee assumes the risk of damage to its Cable System facilities located in or upon the Rights-of-Way from activities conducted by the City, and agrees to release and waive any and all such claims against the City except to the extent any such damage or destruction is caused by or arises from the gross negligence, intentional misconduct or criminal actions of the City. In no event shall the City be liable for any indirect, incidental, special, consequential, exemplary, or punitive damages, including by way of example and not limitation lost profits, lost revenue, loss of goodwill, or loss of business opportunity in connection with the City’s acts or omissions. 5.1.13 Environmental Liability Grantee shall at its own cost, expense, and liability, comply with all applicable laws, statutes, rules, and regulations concerning Hazardous Substances that relate to Grantee’s Cable System. “Hazardous Substances” shall mean any material or substance which does cause or may cause environmental pollution or contamination (and associated liability and clean-up costs related thereto) as defined under applicable state and federal laws, rules, and regulations. Grantee shall be solely and separately liable and responsible for the containment, remediation and/or clean-up of any release of Hazardous Substances directly arising from or relating to Grantee’s Cable System. Grantee shall indemnify, defend and hold the City harmless from any fines, suits, procedures, claims, costs, damages, expenses, and actions of any kind arising out of or in any way connected with any release(s) of Hazardous Substances directly arising from or related to Grantee’s Cable System. This indemnity includes, but is not limited to: (1) liability for a governmental agency’s costs of removal or remedial action for Hazardous Substances; (2) damages to natural resources caused by Hazardous Substances, including the reasonable costs of assessing such damages; (3) liability for the City’s costs of responding to Hazardous Substances; and (4) liability for any costs of investigation, abatement, mitigation, correction, remediation, cleanup, fines, penalties, or other damages arising under any environmental laws. 5.2 Insurance Requirements 5.2.1 General Requirement Grantee shall procure and maintain for the duration of the Franchise and as long as Grantee has Facilities in the Rights-of-Way, insurance against claims for injuries to persons or damage to property which may City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 23 of 63 arise from or in connection with the Agreement and use of the rights-of- way in the coverage amounts described below: (1) Commercial General Liability coverage for bodily injury, personal injury, and property damage with limits of no less than five million dollars ($5,000,000) per occurrence. The general aggregate limit shall be no less than five million dollars ($5,000,000). Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop gap liability, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under the Grantee’s Commercial General Liability insurance policy with respect this Franchise using ISO endorsement CG 20 12 05 09 or CG 20 26 07 04, or substitute endorsement providing at least as broad coverage. (2) Commercial Automobile Liability Insurance with minimum combined single limits of at least two million dollars ($2,000,000) each occurrence and five million dollars ($5,000,000) aggregate with respect to each of Grantee’s owned, hired and non-owned, or any other vehicles assigned to or used in any activities authorized under or used in conjunction with this Franchise. Automobile Liability insurance shall cover all owned, non-owned, hired and leased vehicles. Coverage shall be at least as broad as Insurance Services Office (ISO) form CA 00 01. (3) Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. (4) Umbrella or excess liability insurance in the amount of five million dollars ($5,000,000). Excess or Umbrella Liability insurance shall be excess over and at least as broad in coverage as the Grantee’s Commercial General Liability and Automobile Liability insurance. The City shall be named as an additional insured on the Grantee’s Excess or Umbrella Liability insurance policy. The Excess or Umbrella Liability requirement and limits may be satisfied instead through Grantee’s Commercial General Liability and Automobile Liability insurance, or any combination thereof that achieves the overall required limits. 5.2.2 Primary Insurance Grantee’s Commercial General Liability, Automobile Liability, and Excess or Umbrella Liability, insurance policy or policies are to contain, or be endorsed to contain, that they shall be primary insurance as respect the City. Any insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Grantee’s City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 24 of 63 insurance and shall not contribute with it. The City, and the City’s officers, officials, boards, commissions, agents, representatives, and employees are to be covered as, and have the rights of, additional insured’s with respect to liability arising out of activities performed by, or on behalf of, Grantee under this Franchise or applicable law, or in the construction, operation, upgrade, maintenance, repair, replacement or ownership of the Cable System; 5.2.3 Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. 5.2.4 Verification of Coverage Grantee shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Franchise. Upon request by the City, the Grantee shall furnish certified copies of all required insurance policies, including endorsements, required in this Franchise and evidence of all subcontractors’ coverage. 5.2.5 Subcontractors Grantee shall cause each and every subcontractor to provide insurance coverage that complies with all applicable requirements of the Grantee provided insurance as set forth herein, except the Grantee shall have sole responsibility for determining the limits of coverage required to be obtained by Subcontractors. The Grantee shall require that the City is an additional insured on the Subcontractor’s Commercial General liability insurance policy. 5.2.6 Notice of Cancellation Grantee shall provide the City with written notice of any policy cancellation within two business days of their receipt of such notice. 5.2.7 Failure to Maintain Insurance Failure on the part of Grantee to maintain the insurance as required shall constitute a material breach of Franchise, upon which the City may, after giving five business days’ notice to Grantee to correct the breach, terminate the Franchise or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. 5.2.8 Grantee – Self-Insurance If the Grantee is self-insured or becomes self-insured during the term of the Franchise, Grantee or its affiliated parent entity shall comply with the following: City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 25 of 63 (1) provide the City, upon request, a copy of Grantee’s or its parent company’s most recent audited financial statements, if such financial statements are not otherwise publicly available; (2) Grantee or its parent company is responsible for all payments within the self-insured retention; and (3) Grantee assumes all defense and indemnity obligations as outlined in the indemnification section of this Franchise. 5.2.9 No Limitation of Liability Grantee’s maintenance of insurance as required by this Franchise shall not be construed to limit the liability of Grantee to the coverage provided by such insurance, or otherwise limit the City’s recourse to any remedy available at law or in equity. 5.3 Security 5.3.1 Grantee shall provide a performance bond (“Performance Bond”) in the amount of twenty-five thousand dollars ($25,000) to ensure the faithful performance of its responsibilities under this Franchise and applicable law, including, by way of example and not limitation, its obligations to relocate and remove its facilities and to restore the City Rights-of-Way and other property. The Performance Bond shall be in a standard industry form. Grantee shall pay all premiums or costs associated with maintaining the Performance Bond and shall keep the same in full force and effect at all times. Except as expressly provided in Section 5.4, Grantee shall not be required to obtain or maintain other bonds as a condition of being awarded the Franchise or continuing its existence. 5.3.2 If there is an uncured breach by Grantee of a material provision of this Franchise or a pattern of repeated violations of any provision(s) of this Franchise, then the City may request and Grantee shall establish and provide within thirty (30) days from receiving notice from the City, to the City, as security for the faithful performance by Grantee of all of the provisions of this Franchise, an irrevocable letter of credit from a financial institution satisfactory to the City in the amount of twenty-five thousand dollars ($25,000). 5.3.3 If a letter of credit is furnished pursuant to subsection (B), the letter of credit shall then be maintained at that same amount until the uncured breach is resolved. 5.3.4 After the giving of notice by the City to Grantee and expiration of any applicable cure period, the letter of credit or Performance Bond may be drawn upon by the City for purposes including, but not limited to, the following: City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 26 of 63 (1) Failure of Grantee to pay the City sums due under the terms of this Franchise; (2) Reimbursement of costs borne by the City to correct Franchise violations not corrected by Grantee; (3) Liquidated damages assessed against Grantee as provided in this Franchise. 5.3.5 The City shall give Grantee written notice of any withdrawal from the Performance Bond or letter of credit. Within ten (10) days following notice that a withdrawal has occurred from the Performance Bond or letter of credit, Grantee shall restore the Performance Bond or letter of credit to the full amount required under this Franchise. Grantee's maintenance of the letter of credit shall not be construed to excuse unfaithful performance by Grantee or limit the liability of Grantee to the amount of the letter of credit or otherwise limit the City's recourse to any other remedy available at law or in equity. 5.3.6 Grantee shall have the right to appeal to the hearing examiner for reimbursement in the event Grantee believes that the Performance Bond or letter of credit was drawn upon improperly. Grantee shall also have the right of judicial appeal if Grantee believes the letter of credit has not been properly drawn upon in accordance with this Franchise. Any funds the City erroneously or wrongfully withdraws from the Performance Bond or letter of credit, as determined by either the hearing examiner or judicial appeal, shall be returned to Grantee with interest, from the date of withdrawal at a rate equal to the prime rate of interest as quoted in The Wall Street Journal as of the date of such decision. 5.3.7 If any Performance Bond or letter of credit delivered pursuant thereto expires prior to twelve (12) months after the expiration of the term of this Franchise, it shall be renewed or replaced during the term of this Franchise to provide that it will not expire earlier than twelve (12) months after the expiration of this Franchise. The renewed or replaced Performance Bond or letter of credit shall be of the same form and with a bank authorized herein and for the full amount stated in this Section. 5.4 Bonds Grantee, at its expense, shall comply with all of the applicable construction or maintenance bonding requirements provided for in the City Code, permit requirements, or development standards officially adopted by the City for work in the Rights-of-Way. SECTION 6. - CUSTOMER SERVICE City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 27 of 63 6.1 Customer Service Standards Grantee shall comply with Customer Service Standards as provided in FCC Standards 47 C.F.R. Sections 76.309, 76.1602, 76.1603 and 76.1619 and in MMC 5.08.140. 6.2 Subscriber Privacy Grantee shall comply with privacy rights of Subscribers in accordance with applicable law. 6.3 Customer Service Agreement and Manual 6.3.1 Grantee shall provide to Subscribers an accurate, comprehensive service agreement (currently called the work order) and Customer installation packet (currently called the Install Package) for use in establishing Subscriber service. This material shall, at a minimum, contain the following: (1) Grantee’s procedure for investigation and resolution of Subscriber service complaints. (2) Services to be provided and rates for such services. (3) Billing procedures. (4) Service termination procedure. (5) A description of the manner that will be used to provide notice of changes in rates, service or service terms and conditions. (6) A complete statement of the Subscriber’s right to privacy. (7) Equipment policy. (8) The name, address and phone number of the Customer care department that is responsible for handling cable questions and complaints for Grantee. 6.3.2 A copy of the installation packet shall be available to each Subscriber at the time of initial installation and any reconnection or Cable Service upgrade requiring a home visit by Grantee (excluding reconnections to the same Subscriber within twelve (12) months), and at any time the packet is requested by the Subscriber. Within thirty (30) days following material policy changes, information regarding the changes will be provided to Subscribers. SECTION 7. - REPORTS AND RECORDS 7.1 Open Records City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 28 of 63 7.1.1 Grantee shall manage all of its operations in accordance with a policy of keeping its documents and records open and accessible to the City. In addition to any other records that may be provided for under any other section of this Franchise, the City, including the City’s Finance Director and Public Works Director or their designees, shall have access to, and the right to inspect, any books and records of Grantee, its parent corporations and Affiliates, which are reasonably related to the administration or enforcement of the terms of this Franchise, or Grantee’s use and location within the City’s Rights-of-Way. Records subject to this Section 7.1 include, without limitation, FCC filings on behalf of Grantee, its parent corporations, or Affiliates which directly relate to the operation of the Cable System in the City; SEC filings; listing of Cable Services, rates, and Channel line-ups; Cable Services added or dropped; Channel changes; the net number of Subscribers and the number of Subscribers added and terminated; all planned construction activity; Right-of-Way route maps (including overhead and underground trunk and distribution facilities in a GIS format); beginning and ending plant miles; total homes passed for the previous twelve (12) months; and any significant technological changes occurring in the Cable System; federal and State reports; reports of Subscriber complaints in the City and how such complaints are resolved. 7.1.2 Grantee shall not deny the City access to any of Grantee’s records on the basis that Grantee’s records are under the control of any parent corporation, Affiliate, or a third party. The City may, in writing, request copies of any such records or books and Grantee shall provide such copies within thirty (30) days of the transmittal of such request. One (1) copy of all reports and records required under this or any other subsection shall be furnished to the City, at the sole expense of Grantee. If the requested books and records are too voluminous, or for security reasons cannot be copied or removed, then Grantee may require that the City or its designee inspect them at Grantee’s local offices. For purposes of clarity, any requirements to provide as-built maps shall not be considered too voluminous or unable to be copied for security purposes with respect to the provisions of this subsection 7.1.2. If any books or records of Grantee are not kept in a local office and are not made available in copies to the City or its designee upon written request as set forth above, and if the City determines that an examination of such records is necessary or appropriate for the performance of any of the City’s duties, administration or enforcement of this Franchise, then all reasonable travel and related expenses incurred in making such examination shall be paid by Grantee. 7.2 Confidentiality 7.2.1 Grantee shall not be required to disclose information that it reasonably deems to be proprietary or confidential in nature. That said, Grantee City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 29 of 63 does agree to provide all information reasonably required to verify compliance with the material terms of the Franchise. If Grantee believes that any documents are confidential or proprietary, Grantee shall be responsible for clearly and conspicuously identifying the work as confidential or proprietary, and shall provide a brief written explanation as to why such information is confidential and how it may be treated as such under State or federal law. 7.2.2 As a public agency, records and information provided to or otherwise used by the City may be subject to a request submitted under the state Public Records Act. In such an event, Grantee agrees to cooperate fully with the City in satisfying the City’s duties and obligations under the Public Records Act, subject to Grantee’s rights under this Franchise and RCW 42.56.540. If a request is received for records Grantee has submitted to the City and has identified as confidential, proprietary or protected trade secret material, the City will use its best efforts to provide Grantee with notice of the request in accordance with RCW 42.56.540 and a reasonable time (of no less than 10 days) within which Grantee may seek an injunction to prohibit the City’s disclosure of the requested record. The City shall comply with any injunction or court order requested by Grantee which prohibits the disclosure of any such confidential records; however, in the event a higher court overturns such injunction or court order, Grantee shall reimburse the City for any fines or penalties imposed for failure to disclose such records. Nothing in this Section 7.2 prohibits the City from complying with RCW 42.56, or any other applicable law or court order requiring the release of public records, and the City shall not be liable to Grantee for compliance with any law or court order requiring the release of public records. The City is not required to assert on Grantee’s behalf any exemption based on trade secret, proprietary or confidential information, provided, however, the City may assert such exemption if the City itself believes in good faith that an exemption applies to the requested records. Grantee agrees to defend, indemnify and hold the City, its officers, officials, employees, agents, and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the assertion of an exemption to disclosure under the Public Records Act based upon records claimed or identified by Grantee as confidential, proprietary or protected trade secret material. The provisions of this section shall survive the expiration or termination of this Franchise. 7.3 Annual Reports Upon request, and no more than ninety (90) days after the end of the first quarter, Grantee shall submit to the City a written report, which shall include the following information: City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 30 of 63 7.3.1 A Gross Revenue statement for the preceding calendar year and all deductions and computations for the period, and such statement shall be reviewed by a certified public accountant. 7.3.2 A summary of the previous year’s activities regarding the development of the Cable System, including, but not limited to, homes passed, beginning and ending plant miles and the total number of Subscribers. SECTION 8. - PROGRAMMING 8.1 Broad Programming Categories Grantee shall provide at least the following broad categories of programming to the extent such categories are reasonably available. (1) Educational programming; (2) News, government, weather and information; (3) Sports; (4) General entertainment including movies; (5) Foreign language programming; and (6) Children’s programming. 8.2 Deletion of Broad Programming Categories 8.2.1 Grantee shall not delete or so limit as to effectively delete any broad category of programming within its control without prior written notice to the City. 8.2.2 In the event of a modification proceeding under federal law, the mix and quality of Cable Services provided by Grantee shall follow the guidelines of federal law. 8.3 Obscenity Grantee shall not transmit, or permit to be transmitted, over any Channel subject to its editorial control any programming which is obscene under applicable federal, State or local laws. 8.4 Services for the Disabled Grantee shall comply with the Americans With Disabilities Act and any amendments or successor legislation thereto. 8.5 Parental Control Device Upon request by any Subscriber, Grantee shall make available at no charge a parental control or lockout device, traps or filters to enable a Subscriber to control City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 31 of 63 access to both the audio and video portions of any Channels. Grantee shall inform its Subscribers of the availability of the lockout device at the time of their initial subscription and periodically thereafter. 8.6 Complimentary Cable Service The City acknowledges that Grantee currently provides certain complimentary video services to schools, libraries, and municipal buildings, without charge. Grantee will continue to provide this complimentary service, provided that the facilities are already served or are within 125 aerial service feet or 60 underground trench feet (a Standard Installation) of Grantee’s Cable System, excluding those buildings or portions of buildings that house or occupy prison/jail populations. For as long as the Franchise Fee is below five percent (5%) of Gross Revenues, Grantee agrees to continue the provision of complimentary services to the extent that the regular retail price of such complimentary services does not exceed one percent (1%) of Gross Revenues. Should Grantor elect to increase its Franchise Fee to 5% of Gross Revenues, Grantee shall be entitled to charge its regular retail rate for services to schools, libraries and municipal buildings unless the Grantor directs the Grantee to discontinue the provision of such services. 8.7 New Technology 8.7.1 If there is a new technology, Cable Service program offering, programming delivery method or other such new development that Grantee in its sole discretion decides to beta test or trial on a limited basis in the marketplace, and such a test or trial is suited to the size and demographics of the City, Grantee shall be allowed by the City to conduct the trial or beta test in the City so long as such a test is technically feasible. 8.7.2 If there is a new technology that in the City’s opinion would enhance substantially the quality or quantity of programming available to Subscribers on the Cable System, Grantee shall, at the request of the City, investigate the feasibility of implementing said technology and report to the City the results of such investigation within ninety (90) days from the date of such request. SECTION 9. - PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS 9.1 Access Channels 9.1.1 Upon one hundred twenty (120) days written notice, the Grantee shall make available one (1) Standard Digital (SD) Government Access Channel throughout the term of this Franchise. Upon receipt of the written notice, the City and the Grantee shall meet to discuss and City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 32 of 63 mutually agree upon an implementation plan to activate said Channel controlled and operated by the City. 9.1.2 The City acknowledges that the Grantee’s Cable System provides additional benefits to Access programming needs beyond the requirements listed in subsection 9.1.1 above. This is accomplished through the inclusion of other regional access programming within the regional channel line-up that services the Franchise Area. The Grantee will endeavor to provide the Subscribers in the Franchise Area with the other regional access channels so long as the programmers offer them for use on the Cable System. 9.1.3 In the event Grantee makes any change in the Cable System and related equipment and facilities or in signal delivery technology, which change directly or indirectly affects the signal quality or transmission of any Access Channel programming or services, Grantee shall, at its own expense, take necessary technical steps, acquire new equipment so that the Access facilities and equipment may be used as intended to ensure that delivery of Access Video Programming signals is not diminished or adversely affected, including, among other things, so that live and taped programming can be cablecast with as good or better signal quality than existed prior to such change. 9.2 Simulcast High Definition (HD) Access Channel 9.2.1 The Grantee agrees to simulcast the one (1) SD Government Access Channel in HD (HD PEG Channel) format after the City's maintains an average of five (5) hours per-day, five days per-week of Locally Scheduled Original Programming. For the purposes of this subsection, character-generated programming (i.e., community bulletin City Councils) shall not satisfy, in whole or in part, this programming requirement. Once the City meets or exceeds this programming requirement, the Grantee shall provide the HD PEG Channel under the following conditions: (1) Upon the City’s request, the Grantee shall have one-hundred and twenty (120) days to activate the simulcast HD PEG Channel. (2) The Grantee shall be responsible for all capital engineering costs associated with fulfilling the request to activate the simulcast HD PEG Channels. (3) The City or any Designated Access Provider shall be responsible for acquiring all equipment necessary to produce programming in HD. (4) Upon activation of the simulcast HD PEG Channel, Comcast shall own and maintain the encoder equipment used to transmit the HD signal from City Hall (the demarcation point). City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 33 of 63 (5) The City shall provide the HD PEG Channel signal as specified by the Grantee’s engineering standards, as amended by the Grantee from time to time because of changes in technology. 9.2.2 The City acknowledges that the simulcast HD PEG Channel will be available only to those Subscribers who elect to subscribe to Grantee’s high-definition Cable Service, receive a HD set-top converter, and pay all fees associated therewith. 9.2.3 Grantee shall have sole discretion to determine the Channel placement of the simulcast HD PEG Access Channel within its HD channel line-up. 9.3 Management and Control of Access Channels 9.3.1 The City may authorize Designated Access Providers to control, operate, and manage the use of any and all Access facilities provided by Grantee under this Franchise, including, without limitation, the operation of Access Channels. The City or its designee may formulate rules for the operation of the Access Channels, consistent with this Franchise, the FCC, federal and State law. Nothing herein shall prohibit the City from authorizing itself to be a Designated Access Provider. 9.3.2 Grantee shall cooperate with the City and Designated Access Providers in the use of the Cable System and Access facilities for the provision of Access Channels. 9.4 Location and Quality of Access Channels 9.4.1 The Standard Definition Access Channel provided to Subscribers under this Franchise shall be included by Grantee as a part of the lowest Tier of service provided to all Subscribers in the Franchise. Grantee agrees to use reasonable efforts to place the Access Channel in the same vicinity as other local government access channels. Grantee will use reasonable efforts to minimize the movement of SD and HD Access Channel assignments. 9.4.2 In addition, Grantee will make reasonable efforts to locate the HD Access Channel provided pursuant to Section 9.2 in a location on its HD Channel lineup that is easily accessible to Subscribers. 9.4.3 The parties agree that it is the responsibility of the Designated Access Provider(s) to provide a quality Access signal, to the Grantee at the point of demarcation, which meets or exceeds the FCC technical standards. Notwithstanding the forgoing, the Grantee agrees that it will deliver to subscribers an Access signal of the same quality it receives from the Designated Access Provider(s) without degradation and in accordance with the FCC technical standards. There shall be no City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 34 of 63 restriction on Grantee’s technology used to deploy and deliver Standard Definition or High Definition signals so long as the requirements of the Franchise are otherwise met. FCC technical standards shall be used for all testing and assessment of quality under this section. 9.4.4 Grantee shall provide Headend and hub equipment and routine maintenance and repair and replace, if necessary, any of Grantee’s equipment required to carry the Access signal to and from the City’s and any other Access origination point and the Grantee’s Headend and hubs for the Access Channels. 9.4.5 If Grantee makes a change in its Cable System and related equipment and facilities, or in its signal delivery technology, which directly or indirectly affects the signal quality or method or type of transmission of Access programming or services, Grantee shall take necessary technical steps and provide necessary technical assistance, including the acquisition of all necessary equipment and full training of access personnel, to ensure that the capabilities of Access Channels and delivery of Access programming are not diminished or adversely affected by such change. For example, live and taped programming must be cablecast with as good or better signal quality than existed prior to such change. 9.5 Access Channel Identification/Location/Relocation/Bill Insertions 9.5.1 Grantee will use reasonable efforts to minimize the movement of Access Channel assignments. Grantee shall provide to the City a minimum of sixty (60) days notice, and use its best efforts to provide ninety (90) days notice, prior to any relocation of its Access Channels, unless the change is required by federal law, in which case Grantee shall give the City the maximum notice possible. 9.5.2 Grantee, upon request, and when space is available, shall provide the City the opportunity to include two bill insertions per year. The City or Designated Access Providers shall be responsible for the costs of printing its bill insertions, the cost of inserting the information into Grantee’s bills and for any incremental postage costs. Bill insertions must conform to Grantee’s reasonable mailing requirements. Grantee shall be provided an opportunity to review and approve all Access bill insertions. 9.6 Support for Access Capital Costs 9.6.1 Upon one hundred twenty (120) days notice from the City, Grantee shall collect and remit to the City, as support for any lawful capital PEG use, twenty-five cents ($.25) per Subscriber per month, payable quarterly with Franchise Fees as a “PEG Contribution.” The PEG Contribution City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 35 of 63 shall not be treated as franchise fees for purposes of 47 U.S.C. § 542 or any other purpose, and shall at no time be offset or deducted from franchise fee payments made to the City under this Franchise or applicable law. Upon sixty (60) days written notice to Grantee, the City Council may direct Grantee to no longer collect such PEG Fee from Subscribers. 9.6.2 If during the Term of this Franchise, the City Council determines that there is a need for additional capital equipment to support the Access Channels, then based upon that demonstrated need, both parties shall meet to determine how to adjust the PEG Contribution and if the remaining term of this franchise does not accommodate the full capital needs of the city, both parties may review the possibilities of extending the term of the franchise. Such amount shall be the same amount required of all other Cable Operators in the Franchise Area. The City agrees that 47 C.F.R. §76.922 permits Grantee to add the cost of the PEG Contribution to the price of Cable Services and to collect the PEG Contribution from Subscribers. In addition, as permitted in 47 C.F.R. §76.985, all amounts paid as the PEG Contribution may be separately stated on Subscriber’s bills as a government access capital equipment fee. 9.6.3 The City shall have discretion to allocate the PEG Contribution in accordance with applicable law. To the extent the City makes access capital investments using City funds prior to receiving the monthly PEG Contribution funds, the City is entitled to apply the subsequent monthly PEG Contribution payments from Grantee toward such City capital investments. The City agrees that the PEG Contribution may be treated as a separate line item on Subscriber bills in accordance with applicable federal law. 9.6.4 Upon the Grantee’s written request, the City shall submit a report no more frequently than annually on the use of the City specific Access Channels and capital PEG Fee. The City shall submit a report to the Grantee within one hundred twenty (120) days of a written request. The Grantee may review the records of the City regarding the use of the PEG Contribution. 9.6.5 Unless the City determines to no longer use the Access Channels, the City shall dedicate the time, personnel and other resources needed to operate the Access Channels designated herein. 9.7 Technical Quality Grantee shall maintain all Access channels as required by FCC standards. Grantee shall ensure that any Access Channels carried in High Definition format can also be viewed in Standard Definition format by Subscribers who do not receive High Definition service or do not have High Definition equipment, with the City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 36 of 63 same quality and functionality as commercial channels of the same format, whether through simulcasting the programming in Standard and High Definition, or by means of another technical solution used by Grantee for other commercial programmers carried on the channel lineup. 9.8 Return Connectivity 9.8.1 When the City provides notice to the Grantee concerning its election to control and operate the SD Access Channel, the City shall designate its proposed Access facility location. Within sixty (60) days of receiving notice, the Grantee shall review its facilities and records and provide an estimate of costs associated with the construction and activation of a fiber optic return line capable of transmitting Video Programming to enable the distribution of the City's Access programming to Subscribers on the provided SD Access Channel. The return line shall run from a location to be determined by the City to the Grantee's facilities. Within a reasonable time-period of receiving the City's directive, the Grantee shall construct and activate a return line in accordance with the cost estimate previously provided. The City agrees to pay the actual costs of the return line within ninety (90) days of construction / activation and receipt of an invoice from the Grantee. The parties agree that the City may use the PEG Contribution to pay for the construction of this return line. 9.8.2 Once activated and throughout the remaining term of this Franchise, Grantee shall continue to provide and maintain such return line, as per federal law. 9.9 Guide Selection Grantee agrees that if it utilizes a visual interface under its control on its Cable System for all Channels, the Access Channels shall be treated in a non- discriminatory fashion consistent with applicable laws so that Subscribers will have ready access to Access Channels. To the extent the configuration of the Cable System allows for detailed program listings to be included on the digital channel guide, Grantee will make available to City the ability to place Access Channel programming information on the interactive Channel guide via the electronic programming guide (“EPG”) vendor (“EPG provider”) that Grantee utilizes to provide the guide service. Grantee will be responsible for providing the designations and instructions necessary for the Access Channels to appear on the EPG and the City will be responsible for providing Access content in a format that is compatible with the EPG. All costs and operational requirements for the EPG provider shall be the responsibility of the City. Grantee is not responsible for operations of the EPG provider. Grantee shall, to the maximum extent possible, make available to the City any price discounts Grantee may have in place with third party vendors that offer such programming guide services. The cost of this guide service may be funded in any manner consistent with applicable law. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 37 of 63 SECTION 10. - GENERAL RIGHT-OF-WAY USE AND CONSTRUCTION 10.1 Construction 10.1.1 Grantee hereby acknowledges that the City Code contains construction requirements for the usage of the Rights-of-Way and agrees to abide by such construction requirements, including but not limited to those contained in MMC Chapters 5.08, 19.10 and 19.12. 10.1.2 Grantee shall perform all maintenance, construction, repair, upgrade and reconstruction necessary for the operation of its Cable System in accordance with applicable laws, regulations, ordinances, City standards, (City’s engineering design and development standards) and provisions of this Franchise. Prior to doing such work Grantee shall apply for, and obtain, appropriate permits from the City, and give appropriate notices to the City, and Grantee shall pay all applicable fees upon issuance of the requisite permits by the City to Grantee. As a condition of any permits so issued, the City officials may impose such conditions and regulations as are necessary for the purpose of protecting any structures in such Rights-of-Way, proper restoration of such Rights-of-Way and structures, protection of the public and the continuity of pedestrian or vehicular traffic. All facilities constructed or operated under this Franchise shall be installed and maintained at such places in or upon such rights-of-way as shall not interfere with the free passage of traffic and the free use of adjoining property, and shall conform to federal standards, state requirements, and city regulations. To the extent practicable and economically feasible, Grantee’s construction and location of its facilities shall be of minimal impact to the City streets and sidewalks located within the Rights-of-Way. All construction and maintenance of any and all of Grantee’s facilities within the Rights-of-Way shall, regardless of who performs the construction, be and remain Grantee’s responsibility. 10.1.3 Prior to beginning any construction, excavations, or significant repair, Grantee shall provide the City with a construction schedule for work in the Rights-of-Ways as required by the City’s permitting regulations. Further, Grantee shall meet with the City and other franchise and master permit holders and users of the Rights-of-Way upon written notice as determined by the City, to discuss options regarding scheduling and coordinating construction in the Rights-of-Way. 10.1.4 Grantee may make excavations in Rights-of-Way for any facility needed for the maintenance or extension of Grantee’s Cable System. Whenever it is possible and reasonably practicable to joint trench or share bores or cuts, Grantee shall work with other providers, permittees and franchisees so as to reduce so far as possible the number of Rights-of-Way cuts within the Franchise Area. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 38 of 63 10.1.5 In the event that emergency repairs are necessary, Grantee will make best efforts to contact the City’s Public Works Department (425.233.6400) prior to the repair, however Grantee may initiate such emergency repairs, and shall apply for appropriate permits within forty- eight (48) hours after discovery of the emergency. 10.1.6 Grantee shall be subject to any and all requirements established by the City with regard to the placement and screening of Grantee’s property. Such requirements may include, but are not limited to, the use of landscaping to screen pedestals and cabinets and a requirement that construction be flush with the natural grade of the surrounding area. 10.2 Location of Facilities 10.2.1 Prior to doing any digging or excavation in the Rights-of-Way, Grantee shall follow established procedures, including contacting the Utility Notification Center in Washington and comply with all applicable State statutes regarding the One Call Locator Service pursuant to RCW 19.122. 10.2.2 Further, upon request from the City in conjunction with the design of any City project, and no more than thirty (30) days following such request, Grantee shall, at Grantee’s expense, mark on the surface all of its located underground facilities within the area of the proposed excavation, including horizontal and vertical location. 10.3 Restoration of Rights-of-Way 10.3.1 When any opening is made by Grantee in a hard surface pavement in any Rights-of-Way, Grantee shall promptly refill the opening and restore the surface as required by its permit. Grantee shall guarantee the durability and structural integrity of any street cut or repair made by it or its agents or subcontractors which is necessary for the construction, installation, operation, repair or maintenance of Grantee’s Facilities for the life of the street; provided, that no action by an unrelated third party materially affects the integrity of the Grantee’s street cut or repair. Grantee shall repair or replace, at no expense to the City, any failed street cut or repair which was completed by the Grantee or its agents or subcontractors. 10.3.2 If Grantee excavates the surface of any Rights-of-Way, Grantee shall be responsible for restoration in accordance with applicable regulations regarding the Rights-of-Way and its surface within the area affected by the excavation. The City may, after providing notice to Grantee, and Grantee’s failure to respond within the agreed upon time, refill or repave any opening made by Grantee in the Rights-of-Way, and the expense thereof shall be paid by Grantee. In the event Grantee does not repair a City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 39 of 63 Right-of-Way or an improvement in or to a Right-of-Way in a prompt timeframe or as agreed to with the City Engineer or any other department director as the City may designate, the City may repair the damage and shall be reimbursed its actual cost within thirty (30) days of submitting an invoice to Grantee. The cost of all repairs and restoration, including the costs of inspection and supervision shall be paid by Grantee. All of Grantee’s work under this Franchise, and this Section in particular, shall be done in compliance with all laws, regulations and ordinances of the City and State. All work by Grantee pursuant to this Section shall be performed in accordance with applicable City standards. 10.3.3 The Public Works Director or any other department director as the City may designate shall have final approval of the condition of such streets and public places after restoration. 10.4 Maintenance and Workmanship 10.4.1 Grantee’s Cable System shall be constructed and maintained in such manner as not to interfere with sewers, stormwater, water pipes or any other property of the City, or with any other pipes, wires, conduits, pedestals, structures or other facilities that may have been laid in Rights-of-Way by, or under, the City’s authority. 10.4.2 Grantee shall provide and use any equipment and appliances necessary to control and carry Grantee’s signals so as to prevent injury to the City’s property or property belonging to any Person. Grantee, at its own expense, shall repair, renew, change and improve its facilities to keep them in safe condition. 10.4.3 Grantee’s transmission and distribution Cable System, wires and appurtenances shall be located, erected and maintained so as not to endanger or interfere with the lives of Persons, or to unnecessarily hinder or obstruct the free use of Rights-of-Way, or other public property. 10.5 Acquisition of Facilities Upon Grantee’s acquisition of facilities in any Rights-of-Way, or upon the addition or annexation to the City of any area in which Grantee owns or operates any facility, such facilities shall immediately be subject to the terms of this Franchise. 10.6 Relocation of Facilities 10.6.1 Nothing in this Franchise shall prevent the City from constructing any public work or improvement. The City may require Franchisee to relocate the Cable System within the Right-of-Way when reasonably necessary for construction, alteration, repair, or improvement of the City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 40 of 63 right-of-way for purposes of public welfare, health, or safety. For example, without limitation, the movement of or the request to locate Grantee’s facilities may be needed by reason of traffic conditions, public safety, Right-of-Way vacation, Right-of-Way construction, change or establishment of Right-of-Way grade, installation of sewers, drains, gas or water pipes, or any other types of structures or improvements by for public purposes. For the avoidance of doubt, such projects shall include any Right-of-Way improvement project, even if the project entails, in part, related work funded and/or performed by or for a third party, provided that such work is performed for the public benefit, but shall not include, without limitation, any other improvements or repairs undertaken by or for the primary benefit of third-party entities. Except as otherwise provided by law, the costs and expenses associated with relocations or disconnections requested pursuant to this Section 10.6 shall be borne by Grantee. Such work shall be performed at Grantee’s expense. Nothing contained within this Franchise shall limit Grantee’s ability to seek reimbursement for relocation costs when permitted pursuant to RCW 35.99.060. In the case of a joint relocation project, Grantee shall be responsible for the cost of relocating its facilities. 10.6.2 If the City determines that the project necessitates the relocation of Grantee’s existing facilities, the City shall provide Grantee in writing with a date by which the relocation shall be completed (the “Relocation Date”) consistent with RCW 35.99.060(2). In calculating the Relocation Date, the City shall consult with Grantee and consider the extent of facilities to be relocated, the services requirements, and the construction sequence for the relocation, within the City’s overall project construction sequence and constraints, to safely complete the relocation, and the City shall endeavor to provide Grantee at least sixty (60) days’ notice prior to the Relocation Date. Grantee shall complete the relocation by the Relocation Date, unless the City or a reviewing court establishes a later date for completion, as described in RCW 35.99.060(2). To provide guidance on this notice process, the City will make reasonable efforts to involve Grantee in the predesign and design phases of any Public Project. After receipt of the written notice containing the Relocation Date, Grantee shall relocate such facilities to accommodate the Public Project consistent with the timeline provided by the City and at no charge or expense to the City. Such timeline may be extended by a mutual agreement. 10.6.3 If Grantee fails to complete this work within the time prescribed above and to the City’s satisfaction, the City may cause such work to be done and bill the cost of the work to Grantee, including all costs and expenses incurred by the City due to Grantee’s delay. In such event, the City shall not be liable for any damage to any portion of Grantee’s Cable System. Within thirty (30) days of receipt of an itemized list of those costs, Grantee shall pay the City. In any event, if Grantee fails to timely City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 41 of 63 relocate, remove, replace, modify or disconnect Grantee’s facilities and equipment, and that delay results in any delay damage accrued by or against the City, Grantee will be liable for all documented costs of construction delays attributable to Grantee’s failure to timely act. Grantee reserves the right to challenge any determination by the City of costs for construction delays related to an alleged failure to act in accordance with this subsection 10.6. 10.7 Movement of Cable System Facilities for Other Entities 10.7.1 If any removal, replacement, modification or disconnection of the Cable System is required to accommodate the construction, operation or repair of the facilities or equipment of another entity with the rights to use the Rights-of-Way, Grantee shall, after at least thirty (30) days' advance written notice, take action to effect the necessary changes requested by the responsible entity. Grantee may require that the costs associated with the removal or relocation be paid by the benefited party. 10.7.2 At the request of any Person holding a valid permit (a “Permittee”) and upon reasonable advance notice, Grantee shall temporarily raise, lower or remove its wires as necessary to permit the moving of a building, vehicle, equipment or other item. Grantee may require a reasonable deposit of the estimated payment in advance and may require that the cost be paid by the Permittee. Such payment is an exchange between the Grantee and the Permittee, and the City will not be the administrator of these transactions. 10.7.3 Reimbursement of Grantee Costs Grantee specifically reserves any rights it may have under applicable law for reimbursement of costs related to undergrounding or relocation of the Cable System as described in this Section 10.7, and nothing herein shall be construed as a waiver of such rights. 10.8 Reservation of City Use of Right-of-Way Nothing in this Franchise shall prevent the City or public utilities owned, maintained or operated by public entities other than the City from constructing sewers; grading, paving, repairing or altering any Right-of-Way; laying down, repairing or removing water mains; or constructing or establishing any other public work or improvement. All such work shall be done, insofar as practicable, so as not to obstruct, injure or prevent the use and operation of Grantee's Cable System but insofar as the Cable System, or any portion thereof, is required to be relocated to accommodate the construction of the City or public utility, Grantee shall be solely responsible for the costs associated with relocation. 10.9 Rights-of-Way Vacation If any Rights-of-Way or portion thereof used by Grantee is vacated by the City during the term of this Franchise, unless the City specifically reserves to Grantee City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 42 of 63 the right to continue the use of vacated Rights-of-Way, Grantee shall, without delay or expense to the City, remove its facilities from such Rights-of-Way, and restore, repair or reconstruct the Rights-of-Way where such removal has occurred. In the event of failure, neglect or refusal of Grantee, after thirty (30) days’ notice by the City, to restore, repair or reconstruct such Rights-of-Way, the City may do such work or cause it to be done, and the reasonable cost thereof, as found and declared by the City, shall be paid by Grantee within thirty (30) days of receipt of an invoice and documentation. 10.10 Removal of Discontinued Facilities Whenever Grantee intends to discontinue using any facility within the Rights-of- Way, Grantee shall submit to the City a complete description of the facility and the date on which Grantee intends to discontinue using the facility. Grantee may remove the facility or request that the City allow it to remain in place. Notwithstanding Grantee’s request that any such facility remain in place, the City may require Grantee to remove the facility from the Rights-of-Way or modify the facility to protect the public health, welfare, safety and convenience, or otherwise serve the public interest. The City may require Grantee to perform a combination of modification and removal of the facility. Grantee shall complete such removal or modification in accordance with a schedule set by the City. Until such time as Grantee removes or modifies the facility as directed by the City, or until the City accepts abandonment or the rights to and responsibility for the facility are accepted by another Person having authority to construct and maintain such facility, Grantee shall be responsible for the facility, as well as maintenance of the Rights-of-Way, in the same manner and degree as if the facility were in active use, and Grantee shall retain all liability for such facility. If Grantee abandons its facilities, the City may choose to use such facilities for any purpose whatsoever including, but not limited to, Access Channel purposes. 10.11 Hazardous Substances 10.11.1 Grantee shall comply with all applicable State and federal laws, statutes, regulations and orders concerning hazardous substances within the Rights-of-Way. 10.11.2 Upon reasonable notice to Grantee, the City may inspect Grantee’s facilities in the Rights-of-Way to determine if any release of hazardous substances has occurred, or may occur, from or related to Grantee’s Cable System. In removing or modifying Grantee’s facilities as provided in this Franchise, Grantee shall also remove all residue of hazardous substances related thereto. 10.12 Undergrounding of Cable 10.12.1 Wiring City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 43 of 63 (1) Unless otherwise permitted by the City, all new Cable System construction shall be installed underground. (2) Where electric and telephone utility wiring is installed underground at the time of Cable System construction, or when all such wiring is subsequently placed underground, all Cable System lines, wiring and equipment shall also be placed underground with other wireline service at no expense to the City. Related Cable System equipment, such as pedestals, must be placed in accordance with applicable City Code requirements and rules. Except as otherwise state in Section 10.12.1(3) below, in areas where electric or telephone utility wiring are aerial, Grantee may install aerial cable, except when a property owner or resident requests underground installation and agrees to bear the additional cost in excess of aerial installation. (3) Unless otherwise permitted by the City, Franchisee shall underground its wireline Facilities in all new developments and subdivisions, and any development or subdivision where utilities, other than electrical utilities, are currently underground. (4) Grantee shall only utilize existing poles and conduit. (5) This Franchise does not grant, give or convey to Grantee the right or privilege to install its facilities in any manner on specific utility poles or equipment of the City or any other Person. (6) Grantee and the City recognize that situations may occur in the future where the City may desire to place its own cable or conduit for Fiber Optic cable in trenches or bores opened by Grantee. Therefore, if Grantee constructs, relocates or places ducts or conduits in the Rights-of-Way it shall submit these plans to the City in accordance with the City’s permitting process so as to provide the City with an opportunity to request that Grantee place additional duct or conduit and related structures necessary to access the conduit pursuant to RCW 35.99.070. Other than submission of plans in accordance with the City’s permitting requirements, nothing set forth herein shall obligate Grantee to slow the progress of any future construction of the Cable System to accommodate the City. In addition, Grantee agrees to cooperate with the City in any other construction by Grantee that involves trenching or boring. The City shall be responsible for maintaining its respective cable, conduit and Fiber Optic cable buried in Grantee’s trenches and bores under this paragraph. (7) The City shall not be required to obtain easements for Grantee. (8) Grantee may participate with other providers in joint trench projects to relocate its overhead facilities underground and remove its overhead facilities in areas where all utilities are being City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 44 of 63 converted to underground facilities. If funds from a Utility Local Improvement District are provided to aerial providers to offset the cost of undergrounding, excluding any entity operating under a tariff, Grantee’s costs shall be proportionality paid for out of such funds. 10.12.2 Repair and Restoration of Property If public property is disturbed or damaged by Grantee arising out of or in connection with the provision of Cable Service, Grantee shall restore the property to its former condition. Rights-of-Way or other City property shall be restored in a manner and within a timeframe approved by the City’s Public Works Director, or his/her designee. If restoration of Rights-of-Way or other property of the City is not satisfactorily performed within a reasonable time, the Public Works Director, or his/her designee, may, after prior notice to Grantee, or without notice where the disturbance or damage may create a risk to public health, safety or welfare, or cause delay or added expense to a public project or activity, cause the repairs to be made at Grantee’s expense and recover the cost of those repairs from Grantee. Within thirty (30) days of receipt of an itemized list of those costs, including the costs of labor, materials and equipment, Grantee shall issue payment to the City. 10.13 Codes Grantee shall strictly adhere to City codes that do not directly conflict with the specific provisions of this Franchise. Grantee shall arrange its lines, cables and other appurtenances, on both public and private property, in such a manner as to cause no unreasonable interference with the use of said public or private property by any Person. In the event of such interference or if such construction does not comply with City codes or the permit, the City may require the removal or relocation of Grantee’s lines, cables and other appurtenances from the property in question. 10.14 Tree Trimming Upon obtaining a written permit from the City, if such a permit is required, Grantee may prune or cause to be pruned, using proper pruning practices in accordance with such permit, any tree in the Rights-of-Way that interferes with the Cable System. Grantee shall be responsible for any damage caused by such trimming and shall make every attempt to trim such trees and shrubbery in a fashion that maintains their aesthetic appeal and the health of the tree. Grantee may not remove any trees without the express consent from the City. 10.15 Standards 10.15.1 Grantee shall, at all times, install, maintain and use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage or injuries to the public. In furtherance thereof, Grantee must comply with the City’s traffic control requirements, City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 45 of 63 including, for example, but without limitation, the use of signal devices, warning signs and flaggers when appropriate. All of Grantee’s structures, cables, lines, equipment and connections in, over, under and upon the rights-of-way and public ways or other places in the Franchise Area, wherever situated or located, shall at all times be kept and maintained in a safe condition. 10.15.2 Grantee must comply with all federal, State and local safety requirements, rules, regulations, standards, laws and practices, and employ all necessary devices as required by applicable law during construction, operation and repair of its Cable System. By way of illustration and not limitation, Grantee must comply with the National Electric Code, National Electrical Safety Code and Occupational Safety and Health Administration (OSHA) Standards. 10.15.3 All installations of equipment shall be permanent in nature, and shall not interfere with the travel and use of public places by the public during the construction, repair, operation or removal thereof, and shall not obstruct or impede traffic. All structures and all lines, equipment and connections in, over, under, and upon the public Rights-of-Way or places of a Franchise Area, wherever situated or located, shall at all times be kept and maintained in a safe, suitable condition, and in good order and repair. 10.15.4 Grantee shall endeavor to maintain all equipment lines and facilities in an orderly manner, including, but not limited to, the removal of bundles of unused cables. 10.16 Stop Work On notice from the City that any work is being conducted contrary to the provisions of this Franchise, or in violation of the terms of any applicable permit, laws, regulations, ordinances or standards, the work may immediately be stopped by the City. The stop work order shall: (1) Be in writing; (2) Be given to the Person doing the work, or posted on the work site; (3) Be sent to Grantee by mail at the address given herein; (4) Indicate the nature of the alleged violation or unsafe condition; and (5) Establish conditions under which work may be resumed. Grantee shall comply immediately with any stop work order issued by the City. 10.17 Work of Contractors and Subcontractors Grantee’s contractors and subcontractors shall be bonded in accordance with local ordinances, regulations and requirements. Work by contractors and subcontractors shall be subject to the same restrictions, limitations and City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 46 of 63 conditions as if the work were performed by Grantee. Grantee shall be responsible for all work performed by its contractors and subcontractors and others performing work on its behalf, and shall ensure that all such work is performed in compliance with this Franchise and other applicable law, and shall be jointly and severally liable for all damages caused by them. It is Grantee’s responsibility to ensure that contractors, subcontractors or other persons performing work on Grantee’s behalf are familiar with the requirements of this Franchise and other applicable laws governing the work performed by them. When pulling permits, a subcontractor must clearly state their connection to Grantee. 10.18 Pole Transfers If Grantee leases or otherwise utilizes a pole within the Rights-of-Way owned by a third party for attachment of Grantee’s facilities, and such third party subsequently abandons the pole, for example by building a replacement pole, Grantee shall remove or relocate its facilities from such pole within sixty (60) days of notification from either the third party pole owner or the City, provided that such other structure or place has been made available to the Grantee with sufficient time to allow for the relocation. If Grantee requires additional time to accomplish the removal and/or relocation, Grantee shall notify the City in writing of the reasons for the additional time and its anticipated schedule. 10.19 Strand Mounted WiFi Facilities 10.19.1 Subject to the provisions of this Franchise and applicable safety and electrical codes, Grantee is allowed to place strand mounted wireless facilities on its own cables strung between existing utility poles. 10.19.2 Grantee shall comply with the following requirements: (1) each strand mounted WiFi facility must be less than two and half (2.5) cubic feet in volume; (2) only one strand mounted WiFi facility is permitted per cable strung between two poles; (3) the WiFi strand mounted facilities shall be placed as close to the pole as technically feasible and may not be placed more than six (6) feet from the pole or in that portion of the Right-of-Way used for vehicular travel; (4) Grantee may not place an ancillary pole or ground mounted equipment to accommodate such strand mounted WiFi facilities, unless in the case of ground mounted equipment placed in pre- existing equipment cabinets; (5) the strand mounted WiFi facilities must comply with any applicable FCC requirements related to RF emissions and interference. Upon request, Grantee shall validate that such device meets FCC City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 47 of 63 standards by producing documentation certified by an RF engineer; and (6) such strand mounted WiFi facilities must be removed if they cause a threat to public health or safety. 10.19.3 The deployment of these strand mounted WiFi facilities shall not be considered small cell facilities. To the extent Grantee performs work in the Rights-of-Way associated with the installation, maintenance, construction, repair or upgrade of these strand mounted WiFi facilities, Grantee is required to obtain the appropriate permits consistent with Section 10.1. Further, such strand mounted facilities must be operated as part of the Cable System. SECTION 11. - CABLE SYSTEM DESIGN 11.1 Cable System Specifications Prior to the Effective Date of this Franchise, the parties acknowledge that Grantee undertook a voluntary upgrade of its Cable System to a hybrid fiber coaxial (HFC) fiber-to-the node system architecture, with Fiber Optic cable deployed from its Headend to nodes and tying into a coaxial system serving Subscribers. The Cable System is capable of delivering high quality signals that meet or exceed FCC technical quality standards regardless of any particular manner in which the signal is transmitted. Grantee agrees to maintain the Cable System in a manner consistent with, or in excess of these specifications throughout the term of the Franchise. 11.2 Closed Captioning Equipment must be installed so that all closed captioned programming received by the Cable System shall include the closed caption signal so long as the closed caption signal is provided consistent with FCC standards. 11.3 No Income Discrimination Grantee's construction decisions shall be based solely upon legitimate engineering decisions and shall not take into consideration the income level of any particular community within the Franchise Area. 11.4 Enforceability of Design and Performance Requirements Grantee acknowledges that the minimum Cable System design and performance requirements set forth in this Franchise are enforceable, to the extent allowed by law. 11.5 System Review The City may hold a hearing to review whether or not the Cable System and the Cable Services offered by Grantee are meeting demonstrated community needs and interests, taking into account the cost of meeting those needs and interests. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 48 of 63 The parties recognize that, as of the Effective Date, the City is not permitted to require the provision of specific Video Programming pursuant to this subsection. SECTION 12. - TECHNICAL STANDARDS 12.1 Technical Performance The technical performance of the Cable System shall meet or exceed all applicable technical standards authorized or required by law, including, FCC technical standards, as they may be amended from time to time, regardless of the transmission technology utilized. The City shall have the full authority permitted by applicable law to enforce compliance with these technical standards. 12.2 Cable System Performance Testing 12.2.1 Grantee shall, at its expense, perform all tests on its Cable System required by the FCC (including FCC required test points located within the City) and shall maintain written records of its test results. Upon request, all FCC required technical performance tests may be witnessed by representatives of the City. Copies of such test results will be provided to the City upon request. 12.2.2 All required technical performance or other Cable System tests shall be at the expense of Grantee and may be witnessed by representatives of the City. Upon request, Grantee will notify the City before any required technical proof-of-performance or other testing occurs. 12.2.3 Grantee shall promptly take such measures as are necessary and diligently continue the same until completion in order to correct any performance deficiencies fully and to prevent their recurrence. Grantee’s failure to correct deficiencies identified through this testing process shall be a violation of this Franchise. Sites shall be re-tested within five (5) days following correction until correction has been confirmed and satisfactory results are obtained. SECTION 13. - SERVICE EXTENSION 13.1 Service Availability 13.1.1 In general, except as otherwise provided herein, Grantee shall provide a standard aerial installation of Cable Service within seven (7) days of a request by any Person within the Franchise Area. For standard underground installations scheduling shall be done within seven (7) City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 49 of 63 days of a request for service. For purposes of this Section, a request shall be deemed made on the date of signing a service agreement, receipt of funds by Grantee, receipt of a written request by Grantee or receipt by Grantee of a verified verbal request. Grantee shall provide such service: (1) With no line extension charge except as specifically authorized elsewhere in this Franchise. (2) At a non-discriminatory installation charge for a Standard Installation, consisting of a one hundred twenty-five (125) foot aerial drop or sixty (60) foot underground drop connecting to the exterior demarcation point for Subscribers, with additional charges for non-standard installations computed according to a non-discriminatory methodology for such installations. (3) At non-discriminatory monthly rates for all Subscribers, excepting commercial Subscribers, MDU Bulk Subscribers and other lawful exceptions to uniform pricing. 13.1.2 No Customer shall be refused service arbitrarily. However, for non- Standard Installations of service to Subscribers, or a density of less than twenty-five (25) residences per 5280 aerial cable-bearing strand feet of trunk or distribution cable, or sixty (60) residences per 5280 underground trench feet of trunk or distribution cable, Cable Service may be made available on the basis of a capital contribution in aid of construction, including cost of material, labor and easements. Grantee may require that the payment of the capital contribution in aid of construction be borne by such potential Subscribers be paid in advance. For the purpose of determining the amount of capital contribution in aid of construction to be borne by the Grantee and Customers in the area in which service shall be expanded, the Grantee will contribute an amount equal to the construction and other costs per mile, multiplied by a fraction whose numerator equals the actual number of residences per cable-bearing mile of its trunk or distribution cable and whose denominator equals twenty-five (25) for an aerial extension or sixty (60) for an underground extension. Customers who request service hereunder will bear the remainder of the construction and other costs on a pro rata basis. The Grantee may require that the payment of the capital contribution in aid of construction borne by such potential Customers be paid in advance. 13.1.3 Grantee shall provide Cable Service to Multiple Dwelling Units in accordance with an agreement with the property owner or owners, this Franchise and all applicable laws. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 50 of 63 SECTION 14. - STANDBY POWER AND EAS 14.1 Standby Power Grantee shall provide standby power generating capacity at the Cable System Headend capable of providing at least twenty-four (24) hours of emergency operation. Grantee shall maintain standby power supplies that will supply back- up power of at least four (4) hours duration throughout the distribution networks, and four (4) hours duration at all nodes and hubs. In addition, throughout the term of this Franchise, Grantee shall have a plan in place, along with all resources necessary for implementing such plan, for dealing with outages of more than two (2) hours. This outage plan and evidence of requisite implementation resources shall be presented to the City no later than thirty (30) days following receipt of a request therefore. 14.2 Emergency Alert Capability 14.2.1 In accordance with, and at the time required by, the provisions of FCC Regulations or other federal or state requirements, as such provisions may from time to time be amended, Emergency Alert System (“EAS”) implementation will be accomplished in compliance with the Washington State EAS Plan and to be in compliance with or further Homeland Security requirements or applications. 14.2.2 Grantee shall ensure that the EAS is functioning properly at all times in accordance with FCC regulations. SECTION 15. - FRANCHISE BREACHES; TERMINATION OF FRANCHISE 15.1 Procedure for Remedying Franchise Violations 15.1.1 If the City believes that Grantee has failed to perform any material obligation under this Franchise or has failed to perform in a timely manner, the City shall notify Grantee in writing, stating with documented specificity, the nature of the alleged default. Grantee shall have thirty (30) days from the receipt of such notice to: (1) Respond to the City in writing, contesting the City’s assertion that a default has occurred, and requesting a hearing in accordance with subsection 15.1.2, below; (2) Cure the default; or (3) Notify the City in writing that Grantee cannot cure the default within the thirty (30) days, because of the nature of the default. In the event the default cannot be cured within thirty (30) days, Grantee shall promptly take all reasonable steps to cure the City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 51 of 63 default and notify the City in writing and in detail as to the exact steps that will be taken and the projected completion date. Upon five (5) business days’ prior written notice, either the City or Grantee may call an informal meeting to discuss the alleged default. In such case, if matters are not resolved at such meeting, the City may set a hearing, in front of the hearing examiner, in accordance with subsection 15.1.2 below to determine whether additional time beyond the thirty (30) days specified above is indeed needed, and whether Grantee’s proposed completion schedule and steps are reasonable. 15.1.2 If Grantee does not cure the alleged default within the cure period stated above, or by the projected completion date under subsection 15.1.1(3), or denies the default and requests a hearing in accordance with subsection 15.1.1(1), or the City orders a hearing in accordance with subsection 15.1.1(3), the City shall set a public hearing, in front of the hearing examiner, to investigate said issues or the existence of the alleged default. The City shall notify Grantee of the hearing in writing and such hearing shall take place no less than fifteen (15) days after Grantee’s receipt of notice of the hearing. At the hearing, Grantee shall be provided an opportunity to be heard, to present and question witnesses, and to present evidence in its defense. At any such hearing, the City or the hearing examiner shall not unreasonably limit Grantee’s opportunity to make a record that may be reviewed should any final decision of the City be appealed to a court of competent jurisdiction. The determination as to whether a default or a material breach of this Franchise has occurred shall be within the City’s sole discretion, but any such determination shall be subject to appeal to a court of competent jurisdiction. 15.1.3 If, after the public hearing in front of the hearing examiner, the hearing examiner determines that a default still exists, the hearing examiner shall order Grantee to correct or remedy the default or breach within fourteen (14) days of the hearing examiner’s notification or within such other reasonable timeframe as the hearing examiner shall determine. In the event Grantee does not cure within such time as per the direction of the hearing examiner, the hearing examiner may: (1) Assess and collect monetary damages in accordance with this Franchise; and (2) Recommend to the City Council termination of this Franchise; or (3) Recommend to the City Council to pursue any other legal or equitable remedy available under this Franchise or applicable law. 15.1.4 The determination as to whether a violation of this Franchise has occurred pursuant to this Section herein shall be within the sole City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 52 of 63 discretion of the hearing examiner. Any such determination by the hearing examiner shall be accompanied by a record, to which Grantee’s contribution shall not be limited by the City or the hearing examiner (i.e., the hearing examiner shall hear any interested Persons and shall allow Grantee an opportunity to be heard, to cross examine witnesses, to present evidence and to make additions to the hearing record). Any such final determination made by either the hearing examiner pursuant to 15.1.3(1) or the City Council pursuant to 15.1.3(2) or 15.1.3(3) shall be subject to appeal to a court of competent jurisdiction. Such appeal to the appropriate Court shall be taken within thirty (30) days of the issuance of the final determination. The City shall receive notice from Grantee of any appeal concurrent with any filing to a court of competent jurisdiction. 15.2 Alternative Remedies 15.2.1 No provision of this Franchise shall be deemed to bar the right of either party to seek or obtain judicial relief from a violation of any provision of the Franchise or any rule, regulation, requirement or directive promulgated thereunder. Neither the existence of other remedies identified in this Franchise nor the exercise thereof shall be deemed to bar or otherwise limit the right of either party to recover monetary damages, as allowed under applicable law, or to seek and obtain judicial enforcement of obligations by means of specific performance, injunctive relief or mandate, or any other remedy at law or in equity. 15.2.2 The City specifically does not, by any provision of this Franchise, waive any right, immunity, limitation or protection (including complete damage immunity) otherwise available to the City, its officers, officials, Boards, commissions, agents, or employees under federal, State, or local law including by example Section 635A of the Cable Act. Grantee shall not have any monetary recourse against the City, or its officers, officials, Board, commissions, authorized agents or employees for any loss, costs, expenses or damages arising out of any provision, requirement of this Franchise or the enforcement thereof, subject to applicable law. 15.3 Assessment of Liquidated Damages and Letter of Credit 15.3.1 Because it may be difficult to calculate the harm to the City in the event of a breach of this Franchise by Grantee, the parties agree to liquidated damages as a reasonable estimation of the actual damages to the City. To the extent that the City elects to assess liquidated damages as provided in this Franchise, such damages shall be the City’s sole and exclusive remedy for such breach or violation and shall not exceed a time period of one hundred eighty (180) days. Nothing in this subsection is intended to preclude the City from exercising any other right or City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 53 of 63 remedy with respect to a breach that continues past the time the City stops assessing liquidated damages for such breach. 15.3.2 Prior to assessing any liquidated damages, the City shall follow the procedure provided in Section 5.3. The first day for which liquidated damages may be assessed, if there has been no cure after the end of the applicable cure period, shall be the day of the violation. 15.3.3 Pursuant to the requirements outlined herein, liquidated damages shall not exceed the following amounts: two hundred dollars ($200.00) per day for material departure from the FCC technical performance standards; one hundred dollars ($100.00) per day for failure to provide the Access Channel or any equipment related thereto or funding which is required; one hundred dollars ($100.00) per day for each material violation of the Customer Service Standards; fifty dollars ($50.00) per day for failure to provide reports or notices as required by this Franchise. 15.3.4 No cost to Grantee arising from a breach or violation of the Franchise shall be offset against any sums due the City as a tax or franchise fee regardless of whether the combination of franchise fees, taxes and said costs exceeds five percent (5%) of Grantee’s Gross Revenues in any 12-month period unless otherwise permitted by law. 15.3.5 Collection of Liquidated Damages (1) The Performance Bond and letter of credit referred to in Section 5.3 may be drawn upon by the City for breach of a material provision after notice and opportunity to cure. (2) The City shall give Grantee written notice of any intent to withdraw under this subsection. Within seven (7) days following receipt of such notice, Grantee shall restore the Performance Bond and letter of credit to the amount required under this Franchise. Grantee’s maintenance of the Performance Bond or letter of credit shall not be construed to excuse unfaithful performance by Grantee or to limit the liability of Grantee to the amount of the Performance Bond or letter of credit or otherwise to limit the City’s recourse to any other remedy available at law or in equity. (3) The assessment of liquidated damages does not constitute a waiver by the City of any other right or remedy it may have under the Franchise or applicable law, including its right to recover from Grantee any additional damages, losses, costs and expenses that are incurred by the City by reason of the breach of this Franchise or to seek specific performance. (4) Grantee’s maintenance of the security required herein or by applicable code shall not be construed to excuse unfaithful City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 54 of 63 performance by Grantee of this Franchise; to limit liability of Grantee to the amount of the security; or to otherwise limit the City’s recourse to any other remedy available at law or equity. 15.4 Revocation 15.4.1 This Franchise may be revoked and all rights and privileges rescinded if a material breach of the Franchise is not cured pursuant to Section 15.1, or in the event that: (1) Grantee attempts to evade or fails to perform any material provision of this Franchise or to practice any fraud or deceit upon the City or Subscribers; (2) Grantee makes a material misrepresentation of fact in the negotiation of this Franchise; (3) Grantee abandons the Cable System, or terminates the Cable System’s operations; (4) Grantee fails to restore service to the Cable System after three (3) consecutive days of an outage or interruption in service; except in the case of an emergency or during a force majeure occurrence, or when approval of such outage or interruption is obtained from the City, it being the intent that there shall be continuous operation of the Cable System; or (5) Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged bankrupt, there is an assignment for the benefit of Grantee’s creditors, or all or part of Grantee’s Cable System is sold under an instrument to secure a debt and is not redeemed by Grantee within thirty (30) days from said sale. 15.4.2 Additionally, this Franchise may be revoked one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of Grantee (at the option of the City and subject to applicable law) whether in a receivership, reorganization, bankruptcy or other action or proceeding, unless directed otherwise by a court of competent jurisdiction. 15.4.3 If there is a foreclosure or other involuntary sale of the whole or any part of the plant, property and equipment of Grantee, the City may serve notice of revocation on Grantee and to the purchaser at the sale, and the rights and privileges of Grantee under this Franchise shall be revoked thirty (30) days after service of such notice, unless: (1) The City has approved the transfer of the Franchise, in accordance with the procedures set forth in this Franchise and as provided by law; and City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 55 of 63 (2) The purchaser has covenanted and agreed with the City to assume and be bound by all of the terms and provisions of this Franchise. 15.5 Abandonment; Purchase of the Cable System 15.5.1 Effect of Abandonment If the Grantee abandons its System during the Franchise term, or fails to operate its Cable System in accordance with its duty to provide continuous service, the City, at its option, may: (1) operate the Cable System; (2) designate another entity to operate the Cable System temporarily until the Grantee restores service under conditions acceptable to the City or until the Franchise is revoked and a new Franchisee is selected by the City; or (3) obtain an injunction requiring the Grantee to continue operations. If the City is required to operate or designate another entity to operate the Cable System, the Grantee shall reimburse the City or its designee for all reasonable costs, expenses and damages incurred, including reasonable attorney’s fees and costs. 15.5.2 What Constitutes Abandonment The City shall be entitled to exercise its options and obtain any required injunctive relief if: (1) the Grantee fails to provide Cable Service in accordance with this Franchise over a substantial portion of the Franchise Area for seven (7) consecutive days, unless the City authorizes a longer interruption of service; or (2) the Grantee, for any period, willfully and without cause refuses to provide Cable Service in accordance with this Franchise. 15.6 Removal 15.6.1 In the event of termination, expiration, revocation or nonrenewal of this Franchise, and after all appeals from any judicial determination are exhausted and final, City may order the removal of the System facilities from the Franchise Area at Grantee's sole expense within a reasonable period of time as determined by City. In removing its plant, structures and equipment, Grantee shall refill, at its own expense, any excavation that is made by it and shall leave all Rights-of-Way, public places and private property in as good a condition as that prevailing prior to Grantee's removal of its equipment. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 56 of 63 15.6.2 However, Grantee shall have no obligation to remove the Cable System where it utilizes the system to provide other, permitted and lawful, non- cable services and has obtained or is in the process of obtaining a franchise or other local authority to maintain facilitates in the public rights-of-way, or where Grantee is able to find a purchaser of the Cable System who holds such authorization. 15.6.3 If Grantee fails to complete any required removal to the satisfaction of City, City may cause the work to be done, and Grantee shall reimburse City for the reasonable costs incurred within thirty (30) days after receipt of an itemized list of City's expenses and costs, or City may recover its expenses and costs from the security, or pursue any other judicial remedies for the collection thereof. Any expenses incurred in the collection by City of such obligation shall be included in the monies due City from Grantee, including reasonable attorneys' fees, court expenses and expenses for work conducted by City's staff or agents. SECTION 16. - FRANCHISE TRANSFER 16.1 Transfer of Ownership or Control 16.1.1 The Cable System and this Franchise shall not be sold, assigned, transferred, leased or disposed of, either in whole or in part, either by involuntary sale or by voluntary sale, merger, consolidation or change of control; nor shall title thereto, either legal or equitable, or any right, interest or property therein pass to or vest in any Person or entity without the prior written consent of the City, which consent shall be by the City Council, acting by ordinance or resolution. 16.1.2 Grantee shall promptly notify the City of any actual or proposed change in, or transfer of, or acquisition by any other party of control of Grantee. The word “control” as used herein is not limited to majority stockholders but includes actual working control in whatever manner exercised. Every change, transfer or acquisition of control of Grantee shall make this Franchise subject to cancellation unless and until the City shall have consented in writing thereto. 16.1.3 The parties to the sale, change in control or transfer shall make a written request to the City for its approval of a sale or transfer or change in control and shall furnish all information required by law. 16.1.4 In seeking the City’s consent to any change in ownership or control, the proposed transferee or controlling entity shall indicate whether it: City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 57 of 63 (1) Has ever been convicted or held liable for acts involving deceit including any violation of federal, State or local law or regulations, or is currently under an indictment, investigation or complaint charging such acts; (2) Has ever had a judgment in an action for fraud, deceit, or misrepresentation entered against the proposed transferee by any court of competent jurisdiction; (3) Has pending any material legal claim, lawsuit, or administrative proceeding arising out of or involving a cable system; (4) Is financially solvent, by submitting financial data including financial statements that are audited by a certified public accountant who may also be an officer of the transferee or controlling entity, along with any other data that is lawfully required; and (5) Has the financial, legal and technical capability to enable it to maintain and operate the Cable System for the remaining term of the Franchise. 16.1.5 The City shall act by ordinance or resolution on the request within one hundred twenty (120) days of receipt of the FCC Form 394 application, provided it has received a complete application. Subject to the foregoing, if the City fails to render a final decision on the request within one hundred twenty (120) days, such request shall be deemed granted unless the requesting party and the City agree to an extension of time. 16.1.6 Within thirty (30) days of any transfer or sale or change in control, if approved or deemed granted by the City, Grantee shall file with the City a copy of the deed, agreement, lease or other written instrument evidencing such sale or transfer of ownership or control, certified and sworn to as correct by Grantee and the transferee or controlling entity, and the transferee or controlling entity shall file its written acceptance agreeing to be bound by all of the provisions of this Franchise, subject to applicable law. In the event of a change in control, in which Grantee is not replaced by another entity, Grantee will continue to be bound by all of the provisions of the Franchise, subject to applicable law, and will not be required to file an additional written acceptance. The approval of any change in control shall not be deemed to waive any rights of the City to subsequently enforce noncompliance issues relating to this Franchise. For purposes herein to the extent that a change of control involves an entity that was not an Affiliate prior to the contemplated transaction, the City’s consent shall be required for such change in control. 16.1.7 In reviewing a request for sale or transfer or change in control, the City may inquire into the legal, technical and financial qualifications of the City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 58 of 63 prospective controlling party or transferee, and Grantee shall assist the City in so inquiring. The City may condition said sale or transfer or change in control upon such terms and conditions as it deems reasonably appropriate, provided, however, any such terms and conditions so attached shall be related to the legal, technical and financial qualifications of the prospective controlling party or transferee and to the resolution of outstanding and unresolved issues of noncompliance with the terms and conditions of this Franchise by Grantee. Upon any such request under this SECTION 16. - , the City may condition such approval upon reimbursement of the City’s reasonable processing and review expense in connection with such request for sale or transfer or change in control. 16.1.8 Notwithstanding anything to the contrary in this subsection, the prior approval of the City shall not be required for any sale, assignment, change in control or transfer of the Franchise or Cable System to an Affiliate of Grantee, provided that the proposed assignee or transferee must show financial responsibility as may be determined necessary by the City and must agree in writing to comply with all of the provisions of the Franchise including resolution of any non-compliance issues. Further, Grantee may pledge the assets of the Cable System for the purpose of financing without the consent of the City; provided that such pledge of assets shall not impair or mitigate Grantee’s responsibilities and capabilities to meet all of its obligations under the provisions of this Franchise. SECTION 17. - PROHIBITED PRACTICES, LOCAL EMPLOYMENT EFFORTS AND NOTICES 17.1 Preferential or Discriminatory Practices Prohibited Grantee shall not discriminate in its hiring, employment or promotion decisions. Throughout the term of this Franchise, Grantee shall fully comply with all equal employment and non-discrimination provisions and requirements of federal, State and local laws, and rules and regulations relating thereto. Notices Throughout the term of this Franchise, each party shall maintain and file with the other a local address for the service of notices by mail. All notices shall be sent to such respective address, and such notices shall be effective upon the date of mailing. At the effective date of this Franchise:Grantee’s address shall be: Government Affairs Comcast of Cable Communications, LLC 900 132nd ST SW Everett, WA 98204 City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 59 of 63 the City’s address shall be: Aimee Kellerman City Clerk City of Medina, Washington 501 Evergreen Point Rd Medina, WA 98039 SECTION 18. - MISCELLANEOUS PROVISIONS 18.1 Cumulative Rights Subject to applicable law, all rights and remedies given to the City by this Franchise or retained by the City herein shall be in addition to and cumulative with any and all other rights and remedies, existing or implied, now or hereafter available to the City, at law or in equity, and such rights and remedies shall not be exclusive, but each and every right and remedy specifically given by this Franchise or otherwise existing or given may be exercised from time to time and as often and in such order as may be deemed expedient by the City and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. 18.2 Costs to be Borne by Grantee Grantee shall pay for all costs of publication of this Franchise, and any and all notices prior to any public meeting or hearing provided for pursuant to this Franchise. Such costs are incidental to the award of the Franchise and may not be offset against Franchise Fees. 18.3 Binding Effect This Franchise shall be binding upon the parties hereto, their permitted successors and assigns. 18.4 Authority to Amend This Franchise may be amended at any time by written agreement between the parties. 18.5 Venue The venue for any dispute related to this Franchise shall be United States District Court for the Western District of Washington or in King County Superior Court. 18.6 Governing Laws This Franchise shall be governed, construed and enforced in accordance with the laws of the State of Washington (as amended), the Cable Act as amended, any applicable rules, regulations and orders of the FCC, as amended, and any other applicable local, State and federal laws, rules, and regulations, as amended. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 60 of 63 18.7 Captions The captions and headings of this Franchise are for convenience and reference purposes only and shall not affect in any way the meaning or interpretation of any provisions of this Franchise. 18.8 No Joint Venture Nothing herein shall be deemed to create a joint venture or principal-agent relationship between the parties, and neither party is authorized to, nor shall either party act toward third persons or the public in any manner that would indicate any such relationship with the other. 18.9 Waiver The failure of either party at any time to require performance by the other of any provision hereof shall in no way affect the right of the other party hereafter to enforce the same. Nor shall the waiver by either party of any breach of any provision hereof be taken or held to be a waiver of any succeeding breach of such provision, or as a waiver of the provision itself or any other provision. 18.10 Severability If any Section, subsection, paragraph, term or provision of this Franchise is determined to be illegal, invalid or unconstitutional by any court of competent jurisdiction, such determination shall have no effect on the validity of any other Section, subsection, paragraph, term or provision of this Franchise, all of which will remain in full force and effect for the term of the Franchise. 18.11 Compliance with Federal, State and Local Laws Grantee shall comply with applicable federal, state and local laws, rules and regulations, now existing or hereafter adopted. 18.12 Force Majeure Grantee shall not be held in default under, or in noncompliance with, the provisions of this Franchise, nor suffer any enforcement or imposition of damages relating to noncompliance or default, where such noncompliance or alleged defaults occurred or were caused by circumstances reasonably beyond the ability of Grantee to anticipate and control, including war or riots, civil disturbances, pandemics, floods or other natural catastrophes, labor stoppages, slow downs, availability of materials, labor or equipment, power outages exceeding back-up power supplies or work delays caused by waiting for utility providers to service or monitor their utility poles to which Grantee’s Cable System is attached. 18.13 Entire Agreement This Franchise represents the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersede all prior oral and written negotiations between the parties. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 61 of 63 18.14 Attorneys’ Fees If any action or suit arises in connection with this Franchise, attorneys’ fees, costs and expenses in connection therewith shall be paid in accordance with the determination by the court. 18.15 Action of the City or Grantee In any action by the City or Grantee mandated or permitted under the terms hereof, it shall act in a reasonable, expeditious and timely manner. Furthermore, in any instance where approval or consent is required under the terms hereof, such approval or consent shall not be unreasonably withheld. 18.16 Acceptance Within forty-five (45) days of receipt of an executed Franchise from the City, this Franchise shall be accepted by Grantee by filing with the City Clerk an unconditional, written acceptance of all of the terms, provisions and conditions of this Franchise, in a form substantially similar to Exhibit A attached hereto. In addition to the written acceptance, Grantee shall furnish the additional insured endorsements and certificates of insurance required pursuant to Section 5.2 and the Performance Bond pursuant to Section 5.3. The failure of Grantee to file such an acceptance shall be deemed a rejection by Grantee and this Franchise shall then be voidable at the discretion of the City. 18.17 No Third-Party Beneficiaries There are no third party beneficiaries to this Franchise. 18.18 Termination of Prior Franchise Grantee and the City agree that this Franchise replaces and supersedes Ordinance 815 (the “Prior Franchise”) with respect to Grantee; provided, however, that the grant of this Franchise shall have no effect on Grantee’s obligations to indemnify or insure the City against acts and omissions occurring during the period(s) that the Prior Franchise was in effect, nor shall it have any effect upon liability to pay all Franchise Fees consistent with Washington State statute of limitations that were due and owed under a Prior Franchise. SECTION 19. - EFFECTIVE DATE This Franchise, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum, and shall take effect five (5) days after the passage and publication of an approved summary thereof consisting of the title. City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 62 of 63 APPROVED by the Medina City Council this 10th day of May, 2021. THE CITY OF MEDINA FILED WITH THE CITY CLERK: 5/11/2021 PASSED BY THE CITY COUNCIL: 5/10/2021 PUBLISHED: 5/14/2021 EFFECTIVE DATE: 5/19/2021 ORDINANCE NO. 998 City of Medina, WA – Comcast 2021 Cable Franchise Agreement Page 63 of 63 EXHIBIT A THE CITY COUNCIL THE CITY OF MEDINA WASHINGTON In the matter of the application of Comcast : Cable Communications Management, LLC : for a franchise to construct operate and : Franchise Ordinance No.: 998 maintain facilities in, upon, over, under, : along, across and through the franchise : ACCEPTANCE area of the City of Medina, Washington : WHEREAS, the City Council of the City of Medina, Washington, has granted a franchise to Comcast Cable Communications Management, LLC, its successors and assigns, by enacting Ordinance No. 998, bearing the date of _________, 2021; and WHEREAS, a copy of said Ordinance granting said franchise was received by Comcast Cable Communications Management, LLC on ___________________, 2021, from said City of Medina, King County, Washington. NOW, THEREFORE, Comcast Cable Communications Management, LLC for itself, its successors and assigns, hereby accepts said Ordinance and the franchise contained therein and all the terms and conditions thereof, and files this, its written acceptance, with the City of Medina, King County, Washington. IN TESTIMONY WHEREOF said Comcast Cable Communications Management, LLC has caused this written Acceptance to be executed in its name by its undersigned __________________________________ thereunto duly authorized on this _____ day of __________________, 2021. ATTEST: COMCAST CABLE COMMUNICATIONS, LLC By:_________________________________ Its: _________________________________