§ 710.106. Service area and extension of service.

(a)

Initial service area. For any initial franchise granted to an applicant not already providing cable service to a majority of the residents of the City, a Franchise Agreement shall provide for an initial service area comprised of all parts of the Franchise Area with a minimum density of 30 homes per mile to be fully constructed and activated with services being offered to all residents in the area within a reasonable time to be set forth in a Franchise Agreement. The initial service area shall be designated in such a way as to ensure a Franchisee is not red-lining any neighborhoods based on economic, racial, or other criteria.

(b)

Extension of service outside initial service area. Outside the initial service area, following completion of the initial service area, a Franchisee shall extend its plant and make service available to all areas of Duval County having density of seven or more dwelling units per linear street mile within a time frame to be set forth in the Franchise Agreement. All persons affected by this policy shall be given an opportunity to be heard when City permission is sought for not furnishing service to all persons within the Franchise Area outside the initial service area. In addition to extension-of-service requirements of the City, the Franchisee may negotiate with potential subscribers in areas of low density for an equitable sharing of costs to extend the cable television system into the areas.

(c)

Progress and status reports.

(1)

A Franchise Agreement containing construction requirements as set forth above shall include as an exhibit a construction plan, indicating the timetable for construction of the various segments of the system. This plan may not be amended without the approval of both the Director and the Director of Public Works, in a formal writing, with a revised schedule attached. The schedule shall be in sufficient detail to provide the dates for each element of work.

(2)

From the date of commencement of construction through the completion of the construction timetable, the Franchisee shall furnish to the Director of Public Works, with a copy to the Director, progress reports at three-month intervals. The reports shall indicate, in detail, the progress of construction.

(d)

Construction delay. Upon expiration of the construction schedule attached to a Franchise Agreement without construction having been completed, the City shall give a Franchisee written notice of non-compliance. Failure to cure the non-compliance within 30 days from receipt of the written notice shall result in the assessment of liquidated damages in the amount of $2,000 per day, starting the thirty-first day after receipt of notice of noncompliance. However, Franchisee may apply for, and the City will not unreasonably deny, an extension of time to complete construction where the failure to meet the established deadlines is caused by federal, state or municipal action (including delays in permitting or make-ready steps), act of God, riot or other civil disturbance, or by any other cause, contingency or circumstance beyond its control which prevents or hinders the construction of the cable television system; provided, however, that difficulties or delays caused by subcontractors do not warrant a waiver of the damages hereunder. If construction is determined by the Council or a committee or subcommittee of the council having no fewer than five members, to have been delayed or prevented by any reason beyond the Franchisee's control, the Franchisee shall be absolved from liability upon a sufficient showing of the circumstances.

(e)

Indemnity and insurance.

(1)

The Franchisee shall at all times indemnify, protect and save harmless the City from any and all penalty, damage or charges arising out of claims, suits or causes of action, of award of damages whether compensatory or punitive, or expenses arising therefrom, either at law or in equity, which might be claimed now or in the future, including any payments required by the workers' compensation law, which may arise out of or be caused by the erection, location, maintenance, repair, installation, replacement or removal of the cable television system within the Franchise Area or by an act of the Franchisee, its agents or employees, and recognizes that the granting of this Franchise is good and valuable consideration for giving this indemnity, and that a portion of the value of the Franchise otherwise paid to the City was reduced for this indemnity. This indemnification shall not apply to the City's own gross negligence or willful misconduct, nor to programming provided on the public, educational and government access channels required by this Ordinance or a Franchise Agreement.

(2)

Concomitant with the execution of the Agreement, and at all times during the term of the franchise, the Franchisee shall obtain, pay all premiums for, and file with the Director certificates of insurance evidencing payment of the premium of a comprehensive general liability policy issued by a company authorized to do business in the state, in the form and substance approved by the Office of General Counsel, of not less than (i) $1,000,000 for property damages for any one accident; (ii) $1,000,000 for each person; and (iii) $5,000,000 for each occurrence for liability due to personal injury or death. This insurance shall protect the City from and against all claims, demands, actions, judgments and liabilities which may arise or result, directly or indirectly, from or by reason of loss, injury or damages. In lieu of insurance, the Franchisee may deposit cash or securities providing the security called for in this paragraph. All insurance required hereby shall include the City as an insured party.

(f)

Construction Bond. Prior to any cable system construction, upgrade, rebuild or other work in the streets, excluding work connected with normal operation and maintenance of the Cable System, Franchisee shall furnish a construction bond in favor of the City, in an amount equal to the lesser of the projected cost of construction or $500,000 dollars. If such construction bond is not furnished to the City ten days prior to the start of any such construction, construction shall be delayed until such time as the construction bond is provided in a form reasonably acceptable to the City. The construction bond must be in a form approved by the City or its designee, which approval shall not be unreasonably withheld. The construction bond shall be maintained until said construction work is completed and activated and for a period of 12 months thereafter. Franchisee shall notify the City in writing when it believes the construction has been completed and the date on which it believes the bond may be eliminated pursuant to this Section.

(g)

Letter of Credit. Within 90 days of the effective date of a Franchise, a Franchisee shall post with the City a letter of credit in a form acceptable to the Office of the General Counsel, or in lieu thereof cash or securities, in the amount of $250,000, as surety for the faithful performance and discharge by Franchisee of all obligations imposed by this Chapter and the Franchise Agreement. The letter of credit shall remain in force and effect throughout the life of the Franchise. The rights reserved to the City with respect to the letter of credit are in addition to all other rights of the City, whether reserved by this Chapter or authorized by law, and no action, proceeding or exercise of a right with respect to the letter of credit shall affect any other right the City may have.

(h)

Fair employment practices. The Franchisee will not refuse to hire or employ nor bar or discharge from employment, nor discriminate against any person in compensation or in terms, conditions or privileges of employment because of age, race, creed, color, national origin, marital status, handicap or sex. The Franchisee shall comply with all lawful federal, state and City regulations regarding affirmative action in employment.

(Ord. 2003-188-E, § 1)