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Agenda Packet 09/10/2001
IOnly Discussion Items A & B provided to PA Works! and Cable TV Access Committee S p Ei'"q AL MEETINB UTILITY ADVISORY I-:'OMMITTEE PA WORKS! AND CABLE TV A(DmESS COMMITTEE ~ITY ~OUNCIL CHAMBERS 3:00 P.M. AGENDA I. ~AUU TO II. ROLL I I I. APPROVAL OF HINUTE5 FOR AUGUST I 3~ 200 1 IV, DISCUSSION ITEMS A. ~ABLE TV FUTURE NEEDS AND INTEREST5 REPORT B, FIBER ~PTI~5 PLOT PRUdEnT" STATUS REPORT :. ELE:TRI: UTILITY RATE pRESENTATION D. HIBH Z~NE RESERVOIR AND PUD INTERTIE E. PILOT TESTINB OF WATER S~UR:E FILTRATION F. MABNA DRIVE PROPOSAL FOR PS ~4 (INFORMATION ONLY) G. AMENDMENT T~ PUR:HASE ~DNSERVATI~N ABREEMENT VI. NEXT MEETING - ~T~BER ~s ~0~1 VII. AOd~U~NMENT UTILITY ADVISORY COMMITTEE/PORT ANGELES WORKS! COMBINED MEETING Port Angeles, Washington ~ August 13, 2001 I. Call to Order: Chairman Reed called the meeting to order at 3:05 p.m. II. Roll Call: Members Present: Chairman Reed, Larry Williams, Mayor Doyle, Orville Campbell, Allen Bentley Members Absent: None Staff Present: Craig Knutson, Glenn Cutler, Yvonne Ziomkowski, Ken Ridout, Scott McLain, Gary Kenworthy,Jim Harper, Doyle McGinley, Tom McCabe, Jeff Young, Larry Dunbar, Steve Sperr, Scott Kenyon, Cate Rinehart Others Present: None III. Approval of Minutes: Chairman Reed asked if there were any changes or additions to the agenda. Information on Morse Creek was requested as a late item. Chairman Reed recognized the corrected minutes of June 11, 2001. No action was taken. Chairman Reed asked if there were any additions or corrections to the meeting minutes of July 9, 2001. None were given. Mayor Doyle moved to approve the minutes. Councilman Williams seconded the motion, which carried unanimously. Chairman Reed asked if there were any additions or corrections to the meeting minutes of July 23, 2001. None were given. Councilman Campbell moved to approved the minutes. Allen Bentley seconded the motion, which carried unanimously. IV. Discussion Items: A. Fiber Optic Pilot Project Larry Dunbar, Power Resources Manager, advised the third status report had been postponed until September 10, 2001 due to an unanticipated workload to recruit potential uses to participate in the pilot project. A meeting was given on August 1, 2001 to provide information to potential users and to distribute materials. Approximately 30 to 40 people attended. Mr. Dunbar pointed out that 35 applications had been received with a few more anticipated. A short discussion followed with concerns expressed regarding the cost per month to participants after the pilot. Staffassured the committee that this issue had been discussed in depth at the meeting. UTILITY ADVISORY COMMITTEE August 13, 2001 No action taken. Information only. B. Electric Underground Conversion Ediz Hook Phase 1 Contract ~lward Jim Harper, Electrical Engineering Manager, explained that in 1999 City Council approved budgeting $50,00 per year to underground the overhead electrical facilities along Ediz Hook and these funds had been carried forward each year. Mr. Harper indicated the budgeted cost for the project was exceeded by approximately $34,000 due to the unanticipated necessity to trench in the paved trail and repave. Phase 1 would extend from the Police radio tower to the end of the line near the boat launch ramp. Sealed bids from four companies were received with Potelco of Sumner, Washington coming in lowest Concerns were expressed over spending funds for esthetic purposes only with no great safety issues involved and the fact that there were other sites in town that may be more appropriate. Councilman Campbell moved to recommend the City Council authorize the Mayor to sign the $120,825.04 contract with Potelco, Inc. of Sumner, Washington for the construction of Electric Underground Conversion Ediz Hook Phase 1. Allen Bently seconded the motion. A vote was taken on the motion which carried four to one with Chairman Reed in opposition. C. Sole Source Resolution for Phase 2 of gZater System SCAD,4 Project and Contract with $&B for Installation of Equipment, Project 21-22 Steve Sperr, Utility Engineer, mentioned that S&B Inc. provided the design, acquisition and installation under Phase 1 for monitoring and control facilities at the Elwha Ranney Collector, Black Diamond Reservoir, Peabody Heights Reservoir and Mill Creek Pump Station. Phase 2 would include expansion to Jones and E Street Reservoirs and the Elwha Emergency Valve. S&B Inc. is the only contractor that can reasonably complete this design and installation. A short discussion followed. Mayor Doyle moved to recommend City Council approve the Sole Source Resolution designating S&B Inc. as the providers of SCADA equipment for the City's Water System and authorize the City Manager to sign a contract with S&B Inc. to complete the work for a price not to exceed $60,000 including tax. Council Campbell seconded the motion, which carried unanimously. D. Ground ~I~ater under the Influence of surface water (GWI) Filtration ,4voidance Proposal Steve Sperr, Utility Engineer, advised the Department of Health requires certain deadlines working toward the construction ofa water filtration plant by January23, 2006. A Filtration Avoidance Proposal had been submitted to DOH by the consultant CH2M Hill showing that the City easily meet all criteria to remain unfiltered except watershed control. DOH accepted the proposal with criteria on how to develop and implement a watershed control program. A discussion followed with interest expressed regarding the area involved. Staffindicated the emphasis was on the lower watershed area approximately three miles long and two miles wide. No action taken. Information only. UTILITY ADVISORY COMMITTEE August 13, 2001 E. Pilot Testing of Municipal Treatment Options for Elwha Dam Removal Mitigation Steve Sperr, Utility Engineer, reviewed the various municipal treatment options that ensure the anticipated water quality changes as a result of dam removal are adequately mitigated. Olympic National Park's consultant, URS Corp. Has recommended the high rate flocculation process over conventional filtration and other treatment processes. The optimal time of year for pilot testing is October. A brief discussion followed. Staffwas requested to have a short presentation at Council which may include the consultant. Councilman Campbell moved to recommend City Council concur with ONP's decision to pilot test the Actiflo and Superpulsator treatment processes in order to determine the best municipal treatment facility to be installed under the EIwha Mitigation process. Councilman Williams seconded the motion, which carried unanimously. F. Status of Comprehensive Water System Plan Steve Sperr, Utility Engineer, reported the consulting firm CH2M Hill has been preparing the Comprehensive Water System Plan and the final draft is being reviewed by staff. It is anticipated that the Department of Health approval will likely occur approximately one month after the mandated deadline of November 2001. Circumstances relating to GWI, the Elwha Mitigation Process and local water purveyors have resulted in the delay, however, the delay will not effect the operation or quality of the City's water system. During the discussion that followed Staff was asked to verify with the county whether this delay would interfere with any required permits. No action taken. Information only. G. Indian Health Service Request to Process Sludge From Makah Indian Reservation at Neah Bay JeffYoung, WWTP Superintendent, stated there had been a request to accept and treat up to 200,000 gallons of waste from the wastewater sewage lagoon in Neah Bay. Biosolids generated would be about fifteen tons and are not expected to cause any problems in our process. An analysis performed on the sludge showed it to be very similar to the sludge currently being processed. A charge of fifteen cents per gallon will generate about $30,000 in revenue. Craig Knutson, City Attorney, suggested the possibility of amending an ordinance to accept outside sludge. A brief discussion followed. Mayor Doyle moved to recommend City Council authorize the Director of Public Works and Utilities to negotiate an agreement with the Indian Health Service to receive up to 200,000 gallons of lagoon sludge at fifteeu cents a gallon? and authorize the Mayor to sign the agreement. Allen Bently seconded the motion, which carried unanimously. H. Assumption of Solid Waste Service in Upper Golf Course Road Annexation Area Chairman Reed stated he would continue to chair during this subject but would refrain from giving any opinions or voting. Tom McCabe, Solid Waste Superintendent, confirmed that staff had sent letters to the residents asking their preference of having City solid waste services or continuing with the current contractor, Waste Connections. Of the 31 homes 14 voted for, 9 against, 5 no response and 3 returned 3 UTILITY ADVISORY COMMITTEE August 13, 2001 vacant. As a result of this poll a tentative agreement has been reached with Waste Connections to allow the City to provide services. A brief discussion followed. Allen Bentley moved to recommend City Council approve the City's assumption of solid waste services for the annexed areas on upper Golf Course Road and authorize the City Manager to sign the Second Amendment to the Solid Waste Disposal Contract with Waste Connections. Councilman Campbell seconded the motion. A vote was taken on the motion which carried four to one with Chairman Reed obstaining. L Household Hazardous Waste Amnesty Days Tom McCabe, Solid Waste Superintendent, stated the event is scheduled for September 28th and 29th at the Wal-Mart parking lot and that grant funding from the DOE will pay 60% of approximately $50,000. The City's share of the balance has been approximately 40% based on the number of participants. Cost is figured on tons of waste collected. A short discussion followed. Allen Bentley moved to recommend City Council authorize the Mayor to execute the 2001 agreement with Clallam County to provide a maximum of $8,500 toward the cost of the Household Hazardous Waste Amnesty Days Event. Councilman Campbell seconded the motion, which carried unanimously. J. Electric Rate Increase for October 1, 2001 Scott McLain, Deputy Director for Power Systems, advised the Bonneville Power Administration had implemented a rate adjustment and load based cost recovery adjustment clause that increased wholesale rates to 46%effective October 1, 2001. The rate increase schedule was reviewed with a detailed explanation on how rate studies are affected by a variety of factors. It was suggested that because the increase would be difficult for low-income elderly and disabled customers consideration should be made to increase discount levels bom 5%, 10%, 20% and 30% to 10%, 20%, 30% and 40%. Yvonne Ziomkowski, Finance Director, stressed the cost to the City for these discounts noting the time involved for verification and implementation. Mrs. Ziomkowski further requested more information be brought before the UAC for consideration and action. Changes to the discounts would not be available until January 1, 2002. A discussion followed with questions regarding reserves and funding. Allen Bentley moved to recommend Staffto use the rate stabilization funds to achieve a targeted rate increase level of 15%. Mayor Doyle seconded the motion, which carried unanimously. Councilman Williams moved to recommend Staff apply the rate increase against the billing variable determinants (energy and demand) and not against the base charge. Mayor Doyle seconded the motion, which carried unanimously. Mayor Doyle moved to recommend Staff not amend the rate ordinance as it is not affected. Allen Bentley seconded the motion, which carried unanimously. V. Late Items: Morse Creek Update 4 UTILITY ADVISORY COMMITTEE August 13, 2001 Scott McLain, Deputy Director for Power Systems, reviewed the lease recommendations and indicated a purchase interest by another party. An appraisal needs to be made to pursue this aspect. It was noted that agencies who had reviewed the instream flows declared them adequate. A short discussion followed. No action taken. Information only. Vll. Next Meeting: The next meeting will be held September 10, 2001 at 3:00 p.m VIII. Adjournment: The meeting adjourned at 5:10 p.m. Dean Reed, Chairman Cate Rinehart, Administrative Assistant 8/16/01 N 5PWKS\LIGHT\CONS\CATE\aug 13meet.wpd 5 WASHINGTON, U.S.A. COMMITTEE MEMO DATE: September 10, 2001 TO: UTILITY ADVISORY COMMITTEE PORT ANGELES WORKS! COMMITTEE GOVERNMENT AND EDUCATIONAL ACCESS ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT.' Cable Television and Telecommunications Needs and Interests Report Summary,: Acceptance of the Cable Television and Telecommunications Needs and Interests Report will conclude the public proceeding phase of the formal cable television renewal process. The report is based on considerable input received from a public involvement/information program. The next step of the cable television renewal process is to request the cable operator to prepare and submit a formal proposal that reasonably reflects the Community's future cable- related needs and interests taking into consideration the cost to meet those needs. Recommendation: Recommend that City Council accept the Cable Television and Telecommunications Needs and Interests Report, and authorize staff to request a formal proposal from the cable operator to reasonably meet future cable-related needs and interests as identified in the attached report. Background/Analysis: On December 15, 1987, City Council approved a ill'teen-year non- exclusive cable television franchise that will expire on September 30, 2003. On October 3, 2000, the cable operator requested its franchise be renewed in accordance with the formal procedures of the Cable Communications Policy Act (Act). On October 17, 2000, the City Council approved a professional services agreement with Metropolitan Communications Consultants (MCC) that included a cable television and telecommunications public proceeding and development of a draft cable television franchise for renewal negotiations. On February 20, 2001, Council was advised that the public proceeding must commence by April 1, 2001 in order to preserve the City's authority under the Act. On May 22, 2001, the City Council approved professional services agreements with MCC and the law firm of Dow, Cogburn and Friedman, which has since then been acquired by the law firm of Winstead, Sechrest & Minick, for technical and legal services during the cable television franchise renewal negotiations. On July 26, 2001, the cable operator requested the City expedite the renewal of its franchise prior to completion of an upgrade of their cable television network, which is anticipated by the 2nd quarter of 2002. September 10, 2001 Committee Memo RE: Cable Television and Telecommunications Needs and Interests Report Page 2 Cable television needs and interests Thc cable television ftndings and recommendations are included in section A of the attached Cable Television and Telecommunications Needs and Interests Report. A summary of the future cable-related community needs and interests recommendations is included as Attachment A. The draft cable television franchise (Section H of the attached report) was prepared by Metropolitan Communications Consultants and was reviewed by the law ftrm of Winstead, Sechrest & Minick. The Cable Television and Telecommunications Needs and Interests Report has been shared with the Cable Operator. A formal three-step process is used to renew a franchise in accordance with the 1984 Cable Communications Act (see Attachment B). The Act allows for informal and formal renewal procedures. Informal negotiations will continue during the formal submittal of a proposal. The formal procedures arc being followed to maintain the City's authority granted by the Act. The first-step of the formal process was a public proceeding to assess the cable operator's performance and compliance with the current franchise and determine the future cable-related needs and interests of the community. Telecommunications needs and interests The findings and recommendations from a business survey and a needs and solutions workshop conducted earlier this year are smnmarized in section D of the Cable Television and Telecommunications Needs and Interests Report. The data collected under this effort were used as part of the City's telecommunications business planning analyses. The Cable Television and Telecommunications Needs and Interests Report (excluding the appendices) was available on the City's interact telecommunications portal for telecommunications service providers on September 5, 2001. Telecommunications service providers will be formally invited to submit proposals to the City later this year under the City/Telephone Partnership, and City/Cable/Telephone consortium. The data and information provided in this report will be important to service providers that consider responding, individually or as a consortium, to the City's forthcoming request for proposal. Attachinent A Summary of future cable related community needs and interests recommendations Subscriber Based on subscriber needs and interests, reserving the right to regulate rates, Needs and cvcn though thc City has only limited rate regulation authority, is recommended. Interests The minimum analog channel capacity should be at least 70 activated channels. The City should establish minimum system reliability and performance standards and minimum programming requirements for local, regional and national news and sports. Subscriber shall be notified in advance of channel lineup changes and should be periodically surveyed on programming needs and interests. Standards should also be set for obscenity, parental control devices, and closed caption signals. Subscriber The proposed subscriber service standards are based on Federal Communications Service Commission standards. The recommended standards address installations, Standards service interruptions and other service problems, appointments, notices and subscriber communications, disconnection of service, deposits/refands/credits, rates/fees/charges, and privacy protections. Franchise To provide motivation for the cable operator to comply with the terms of the Violations franchise, liquidated damages should be paid to the City for Franchise violations. Reporting It is recommended that the cable operator establish a public relations program Requirements and increase the frequency of City reporting. Performance comparisons to Federal Communications Commission benchmarks shall be included. Access The franchise should require up to three access channels. The University of Channels Washington conveyed its interest to the City in making UWTV available in Port Angeles. The cable operator should provide the City fimds for an adequate I educational and government access channel system. Community An activated cable television drop and cable modem service should be provided, Needs and at no cost, to all primary and secondary schools, institutions of higher education, Interests and governmental sites. An emergency alert system should also be provided. Term A minimum non-renewable and non-exclusive term of four years is recommended if there is no new capital investment in cable plant upgrade by the cable operator, specifically including the broadband network, cable modem service, and institutional services. A six-year extension is recommended subject to completion and City acceptance of the upgrade within nine months after the effective date of the initial four-year term of the renewed franchise. A five-year extension beyond the six-year extended term is also possible for any additional City required upgrade. The maximum term recommended is fifteen years. Franchise Continuation of the 5% franchise fee is recommended. The franchise fee will be Fee allowed to be credited against any public utility tax. Utility Tax The City does not currently collect a public utility tax on cable television services. A 6.0% public utility tax is recommended if there is no new capital investment in the cable plant upgrade by the cable operator. Institutional The franchise should require the cable operator to provide an institutional Network network capable of bi-directional voice, data, and video between all connected sites designated by the City. Franchise The City should designate and assign staff, support and funding for cable Management television franchise management. Franchise management duties would be to monitor and oversee fulfillment by the cable operator of its obligations under the franchise. Attachment B Formal franchise renewal process t StaRe 2 StaRe 3 Cable Operator Proposal Administrative Renewal Request ; Negotiations Proceeding StaRe I .ol Preliminary Public Proceeding Acceptable Financial, Assessment to Deny Past Performance Legal, Technical Ability Franchise Renewal & Needs and Interests Future Needs Reasonably Met? and Interests yes Futura Needs & Public Notice Interests Report Franchise Adoption Substantial Franchise Compliance & /tO Acceptable Service Quality ~ yes Request Informal/Formal Proposal I I I I Cable Television and Telecommunications i Needs and Interests Report August 31, 2001 IPrepared for , I The City of Port Angeles P.O. Box 1150 I321 East Fifth Street Port Angeles, WA 98362-0217 ! ! ! METROPOLITAN I COMMUNICATIONS CONSULTANTS I Seattle: 5§47 McKinley PI. N., Seattle, Washington 98103 Tel; 206.522.6778 Fax: 206.522,6777 Tacoma: 1201Pacif[cAvenue, Sulte1702, Tacoma, Washington 98402 Tel: 253.272.1636 Fax: 253.272.1482 www.mcco.com ! I I I I THE CITY OF PORT ANGELES 321 East Fifth Street, Port Angeles, WA 98362-0217 CITY COUNCIL I Larry Doyle, Mayor Cathleen McKeown, Deputy Mayor Orville Campbell I Lauren Erickson Jim Hulett Glenn Wiggins I Larry Williams Michael Quinn, City Manager I Project Consultants Metropolitan Communications Consultants, LLC i Seattle and Tacoma, Washington i Metropolitan Communications Consultants 8/31/01 CABLE TELEVISION AND TELECOMMUNICATIONS NEEDS AND INTERESTS REPORT August 31, 2001 TABLE OF CONTENTS page CABLE TELEVISION RELATED NEEDS AND INTERESTS A. Findings and Recommendations 1. Introduction and Background 1 2. Cable Television Related Findings 1 3. Cable Television Related Recommendations 4 B. Past Performance 4. Compliance with Franchise Required Provisions Exhibit 1: Operator Compliance with Franchise Required Provisions 7 - 8 C. Needs and Interests 5. Compliance with Subscriber Current Needs and Interests Exhibit 2: Compliance with Subscriber Current Needs and Interests 9 6. Subscriber Future Needs and Interests Exhibit 3: Subscriber Future Needs and Interests 10 TELECOMMUNICATIONS RELATED NEEDS AND INTERESTS D. Findings and Recommendations 7. Introduction and Background 11 8. Telecommunications Related Findings 11 - 12 9. Telecommunications Related Recommendations 12 E. Needs and Interests 10. Current Services and Future Subscriber Needs Exhibit 4: Voice, Video, Wireless Communications 13 Exhibit 5: Data Communications, Internet Access, LAN/WAN Computer Networks 14 Exhibit 6: Respondents' Resources and Opinions 15 Metropolitan Communications Consultants §/3 !/01 I APPENDICES TO CABLE TELEVISION AND TELECOMMUNICATIONS NEEDS AND INTERESTS REPORT I August 31, 2001 APPENDICES page I F. Cable Television Related Appendices 1Z CATV Sample Survey Forms 1 - 3 I 12. CATV Exhibit 2 Charts: Subscriber Current Needs and Interests Charts (7 of 7) 4 - 10 13. CATV Exhibit 3 Charts: Subscriber Future Needs and Interests Charts (6 of 6) 11 - 16 14. CATV Subscriber Comments 17 - 30 I G. Te{ecommunicafions Related Appendices 15. Telecom Providers and Users Contacted 31 16, Telecommunications Needs and Solutions Workshop Executive Summary 32 - 33 17. Telecommunications Sample Survey Forms 34 - 36 I 18. Telecommunications Exhibit 4-6 Charts (4 of 4) 37 - 40 19. Telecommunications Survey Comments 41 - 42 H. Cable lelevlsion Franchise Renewal 20. Informal Proposal for the Cable Franchise Renewal 43 - 83 Exhibit A - Acceptance of Franchise 84 Exhibit B -- Grantee Furnished Connections to Community Facilities 85 - 88 Exhibit C - Subscriber Service Standards 89 - 96 1 Exhibit D - Subscriber Service Reporting Requirements 97 - 98 Exhibit E -- Public Utility Tax Ordinance Amendment 99 · Exhibit F - Northland Fiber Upgrade Plan 1 and Node Service A 100 I I This document is on file and available for inspection at the offices of the City of Port Angeles, 321 East Fifth Street, Port Angeles, WA 98362-0217 (attention: Mr. Larry Dunbar). I Copies may be obtained for the cost of printing. I Metropolitan Communications Consultants 8/31/01 · I I CABLE TELEVISION RELATED NEEDS AND INTERESTS Page I A. FINDINGS AND RECOMMENDATIONS 1. Introduction and Background I Northland Cable Television's fifteen-year non-exclusive cable television franchise, granted by the City of Port Angeles on December 15, 1987, will expire on September 30, 2003. On October 17, 2000, following ireceipt of Northland's request for renewal dated October 3, 2000, Metropolitan Communications Consultants (MCC) was authorized by the City to assist in beginning a public proceeding and in the preparation of a needs and interests ascertainment in accordance with the formal procedures described in Section 626 of the Cable Communications Policy Act. I The City and MCC's work on review of the operator's past performance and ascertainment of future cable-related community needs and interests was begun in December, 2000 and included the following i components: · On-line Internet and Mail-~n Survey, conducted between February 24, 2001 and May 8, 2001. The survey was posted on MCC's project website on February 24, 2001 following publicizing by the City i through an advertisement in the Peninsula Daily News, notices distributed at the Home Show on the weekend of February 24, 2001 and inserted into utility bills mailed out to customers. A sample copy of the survey forms is given in Appendix F.11. The total number of on-line and mail-in responses received through May 8, 2001, the conclusion of the I survey period, was 354. · Compliance Review. A review of City records and documents related to the existing cable franchise I was conducted, ending on April 25, 2001. The major documents reviewed included: a. Franchise fee payment documentation. Fee computations from 1987-1990 are unclear as reported further on in Exhibit 1 section 14. From 1991-1996, a City approved calculation form was I employed that greatly assisted City review. Since 1996, however, use of the form has been discontinued, despite City requests. b. Operator's Annual Report to the City. Of the 14 reports covering the franchise period (1987-2000), I nine (1987, 1989-1996) were prepared by 3H Cable Communications Consultants; three (1988, 1999-2000) by Northland itself, and two (1997-1998) are missing. i c. Citizen relations documents on file at the City, including customer notices, programming and rate matters, grievance resolution, and senior discount issues. Copies of documents referenced in the summary exhibits are contained in a separate file of worksheets available for inspection at the offices of the City of Port Angeles, 321 East Fifth Street, Port Angeles, WA 98362-0217 (attention: I Mr. Larry Dunbar). · Informal D~scuss~ons. Informal discussions by City representatives and MCChave been ongoing since February 2001 with Northland representatives, including Pete Grigorieff, General Manager; Michael I Roberge, Operations Manager Westem Division; Michael Sturgeon, P.A. Operations and Manager; Richard J. Dyste, Vice President, Engineering. Three face to face and four telephone conference meetings have explored City cable related and I economic development needs, Northland upgrade planning, and the of possibility together to meet common goals for mutual advantage. Informal discussions by written correspondence have also been conducted with University of I Washington TV and Washington State TV University 2. Cable Television Related Findings I 626(c)(1)(A-D) of the Cable Act lists four factors which are the basis for the City making its Section decision to grant or deny the operator's proposal for renewal. These four factors and the corresponding findings of this report are given below: ! i Metropolitan Communications Consultants 8/31/01 Cab|e Television Related Needs and Interests Page :2 (A) The cable operator has substantially complied with the material terms of the existing franchise and with applicable law; (favorable finding - substantial compliance, ~e Exhibit I and summary paragraph below) (B) the quality of the operator's service, including signal quality, response to consumer complaints, and billing practices, but without regard to the mix or quality of cable serv[ces or other services provided over the system, has been reasonable in light of community needs; (adverse finding - see Exhibit 3, summary paragraph below and Appendix F. 14) (C) the operator has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in the operator's proposal; and (not applicable -future determination upon City receipt of proposal) (D) the operator's proposal is reasonable to meet the future cable-related community needs end interests, taking into account the cost of meeting such needs and interests. (not applicable -future determination upon City receipt of proposal) A summary of the data gathering and findings and enalysis of the needs assessment is presented below. Compliance with Franchise Required Provisions {reference: Section 626(c)(I)(A)) · During the term of the existing franchise, the operator was in compliance with the franchise provisions as shown in Exhibit 1, and as summarized below: - 14 of 58 franchise provisions 24.1% Full compliance - 27 of 58 franchise provisions 46.6% Full complience based on no contrary record - 14 of 58 franchise provisions 24.1Yo Substantial compliance - 2 of 58 franchise provisions 3.4% Partial compliance - 1 of 58 franchise provisions 1.7% Non compliance · The full compliance shown above in the second item is based upon the non-existence of any contrary record in the City's files and is more an indication of the need for franchise management then an endorsement of compliance by the operator. Subscriber Needs and Interests {reference: Section 626(c)(1)(B)) · During the term of the existing franchise, subscribers were generally satisfied within 3 of 6 service categories as shown in Exhibit 2. These categories were billing procedures, service quality, and installation and repair service, and in spite of complaints, majority subscriber response indicates substantial compliance with their needs and interests (Exhibit 2 and Exhibit 2 Charts). · Subscribers' response to the operator's performance in the remaining 3 categories of monthly rates, programming and customer relations however, is strongly negative (Exhibit 2). · Monthly rates. The greatest subscriber dissatisfaction is in the area of rates as evidenced by a 91% negative response together 91 negative comments (Appendix A). Complaints covered senior discounts (6), unreasonable basic rate charges (22) and poor value (63). 48 comments were received stating that subscribers had changed to satellite service as a result primarily because of better rates and value. · Programming. 83% of responses and associated comments, stated subscriber dissatisfaction with programming quality (21), content (28), disappointment at the loss of local news (16), unavailability of sports coverage (9), governmental affairs (6) and content of music channels (9). Subscribers were also upset with lack of opportunity for subscriber input (7), channel substitutions and elimination by the operator (20), and apparent disregard of subscriber preferences (33). · Customer relations. Although the responses received are apparently equally divided, subscriber comments are almost entirely strongly negative (Appendix A). More frequently, complaints were directed toward customer relations (13), perceived as rude and arrogant. · Pursuant to the response of Port Angeles~s subscribers, it is important for the City to retain flexibility to regulate rates to the extent allowed under federal law. Metropolitan Communications Consultants 8/31/01 Cable Television Related Needs and Interests Page 3 · The ascertainment indicates a need in the new franchise for specific standards to the measure perator s performance and adequate remedies to ensure the standards are met. · A set of subscriber service standards, modeled after FCC customer service standards in 47 CFR 76.309, is included as Exhibit B in Appendix D. The FCC standards address the performance of the operator in the areas of telephone response, repair service, installation, billing practices, and system reliability. The operator's comments should also being considered. Community Needs and Interests · Free cable television basic service to public buildings is an existing provision in Section 5 (5) of the current franchise. This service meets a continuing need and should be continued in the franchise. · Broadband cable Internet access is a service that would greatly benefit schools and public institutions to enable fast, convenient, information access. The new franchise should require the operator to provide this service in a fashion comparable to its free cable television to schools and public buildings. · On March 29 2001, the City received notification from the University of Washington of its strong interest in utilizing an educational access channel to make uw'rv available in Port Angeles. · Washington State University has also talked with the City regarding educational and is access awaiting funding prior to being able to make a decision at this time. · It appears that with growing awareness, utilization of educational and governmental access could rapidly require the provision of additional access channels. Provision for this likelihood, along with the associated need for resources, equipment, facilities, and funding support should be made in the new franchise. Term of the Agreement · Rapidly advancing telecommunications technology and the dynamic nature of the industry present a risk for the City of Port Angeles to enter into a long-term agreement without substantial safeguards. The City would be best served in a renewed franchise agreement by a term that provides flexibility for change while safeguarding subscriber and community interests. The 15~year term of the existing franchise is no longer reasonable or practical. · As a general principle, a franchise term should reasonably allow the cable operator to recover its franchise-required investment. It is the operator's decision however, to determine the magnitude of that investment. In other words, the investment should drive the term, and not the term the investment. · This assessment finds that a minimum non-renewable term should be adopted if there is no new capital investment in cable plant by the cable operator, specifically including an institutional network and additional fiber strands to permit emerging broadband cable services by the operator or others. · The minimum term however, should be extended commensurate with the operator's capital investment, and the length of the extension should be sufficient to allow the operator to recover its investment in compliance with the terms of the City's franchise. Franchise Fee · Section 542(b) of the Cable Act permits cities to charge a 5% franchise fee based on the operator's gross revenues from the operation of a cable system. The payment of a franchise fee is considered compensation for use of public rights of way. · In 1996, the Association of Washington Cities surveyed 201 Washington cities and found that 132 (66%) charged a cable television franchise fee, with the average franchise fee charged being 4.1%. The same survey also reported 40 cities (20%) were charging a separate utility tax, which averaged 5.5%, in addition to the cable television franchise fee. · There will be ongoing expenses for management and enforcement of a new franchise and access channel activity management. These needs justify the franchise fee as well as not crediting it to any utility tax on cable television services. Metropolitan Communications Consultants 8/31/01 Cable Television Related Needs and Interests Page Franchise Management and Adequate Sanctions · The experience of the current franchise has shown the need for franchise management with dedicated resources and support funding to ensure full compliance and to realize provisions having substantial value and benefit to the City. · The City needs internal procedural guidelines to clearly define its purpose, policies, responsibilities and procedures for franchise management to avoid unintentionally allowing the cable operator to delay or not fulfill its franchise obligations. · Examples include proper and timely payment of franchise fees, independent compensation audits, proper inclusion of annexation area revenues in franchise fee calculations, proper notification and reporting of available discounts, and compliance in providing service to community facilities. · The experience of the current franchise has shown that sanctions are necessary to ensure franchise compliance. While the current franchise includes provisions for termination (Section 20, Ordinance 2470) and remedies (Section 21), the remedies are not specific, are too general and not easily errforceable. An array of appropriate and adequate sanctions is needed. · The City needs security for the faithful performance of all provisions of the franchise. A letter of credit as security for liquidated damages, among other items, is a need that should be covered in the franchise. 3. Cable Television Related Recommendations On the basis of the findings of current and future cable related needs and interests of the community, the following recommendations are made for inclusion in the renewal cable franchise ordinance: Term · A minimum non-renewable term of four (4) years is recommended if there is no new capita] investment in cable plant by the cable operator, specifically an institutional network (I-Net), reserve capacity for future upgrades and broadband cable services. ·A six (6) year extension is recommended subject to - Completion and activation of an I-Net within nine (9) months after the effective date of the initial four-year term of the renewed franchise, and - The provision of a minimum reserve capacity of 48 strands of single mode optical fiber for future upgrades and open access broadband cable services. Franchise Fee. · A franchise fee of 5% in accordance with 47 USC §542(b) is recommended. · It is also recommended if Chapter 5.80 PAMC is amended to establish the collection of a public utility tax on cable television business, that all or part of the franchise fee be credited toward payment of the public utility tax to obtain parity in cable television and telecommunications taxation. Franchise Management · The City should assign staff, support and funding for cable television franchise management. Franchise management duties would be to monitor and oversee fulfillment by the cable operator of its obligations under the franchise provisions. · The City should develop its internal franchise management capabilities, and utilize outside resources as necessary, to properly manage the new franchise to protect subscriber, community and City interests, and to ensure compliance by the Grantee with all franchise provisions. This need is heightened during the extended term. Liquidated Damages for Franchise Violations · To provide motivation for the Grantee to comply with terms of the franchise, liquidated damages should be paid to the City for Franchise and Subscriber Service Standards violations. Metropolitan Communications Consultants 8/31/01 I Cable Television Related Needs and Interests Page 5; I · Payment of liquidated damages should be guaranteed by a letter of credit on behalf of the City, at a bank in Port Angeles, to be provided by the Grantee. It is recommended that the new franchise provide for a letter of credit and that the requirement not be waived. · The following schedule of liquidated damages is proposed: - Failure to provide and maintain requested Cable Service to any household in the Franchise Area: fifteen cents ($0.15) per affected household, for each day that such failure continues; I (not to exceed one thousand dollars ($1000) per day) - Failure to promptly provide data, documents, maps, reports or information to the City: two hundred and fifty ($250) per day, for each day such failure continues. I - Failure to provide an Access Channel and other resources in accordance with Franchise guidelines: three hundred dollars ($300) per day for each day such failure continues. - Failure to comply with City Requirements concerning construction in the Public Rights-of-Way: I two hundred dollars ($200) per day for each day such failure continues. - Failure to substantially comply with a material requirement of Subscriber Service Standards: two hundred dollars ($200) per day for each day such failure continues. I - Failure to substantially comply with technical and performance specifications completion upon and activation of the institutional network: three hundred dollars ($300) per day for each day such failure continues. I - If the Grantee accepts the extended term previously described in the extended term recommendation, failure to comply with completion and activation of an I-Net within nine (9) months after the effective date of the initial four-year term of the renewed franchise, or failure to I provide required reserve capacity for future upgrades and open access broadband cable services: five hundred ($500.00) dollars per day for each day such failure continues. i Subscriber Needs and Interests · Subscriber Service Standards (Exhibit C in Appendix H.19) should be incorporated into the Franchise ordinance. I · Grantee should be required by the Franchise to demonstrate to the City within the first year of its Franchise term, the results of its efforts to address the major areas of subscriber complaint disclosed by the City's current ascertainment, that is rates, programming and customer relations. I· It is also recommended that the Franchise include a requirement for the Grantee to implement a public relations program to address the major areas of subscriber complaint and that the City reserve the right to review and comment on the program at reasonable intervals. I Community Needs and Interests · An activated cable television drop and basic cable television service should be provided, at no cost, to i the City designated community sites listed in Exhibit B of Appendix H.19. · The franchise should require the Grantee to provide each City designated site listed in Exhibit B of Appendix H.19, a free cable modem and a free connection to an Internet service provider to the extent such service is available on the grantee's cable system. I Access Channels In addition to the current activated access channel (Channel 21), the franchise should require the I to provide to two additional activated access channels when existing channel utilization grantee up reaches predetermined levels. There should be one access Channel available to be dedicated exclusively for either educational or I governmental use, to designated by City, fully be the if it is utilized. To provide funds for an adequate access channel system, the Grantee should provide the City: I - A capital contribution for production facilities and equipment of $150,000 during the first four-year i Metropolitan Communications Consultants 8/31/01 Cable Television Related Needs and Interests Page 6 I term of the franchise. - An additional capital contribution for production facilities and equipment up to an amount equal to $30,000 per additional year of any extended term. - An annual operational contribution to support the adequate operation of access channels in the amount of 15 cents per subscriber per month. Broadband Network and Institutional Services · A traditional approach to institutional networks is for a cable operator to provide a City such a facility as an incremental addition to a cable system upgrade. The completed network is usually a dark fiber network with equipping, activation, operation and network management by the City. The result is a network with "split" ownership and operation, the transmission cable owned and maintained by the Grantee and the network equipment owned, operated and maintained by the City. · In view of the City's goal is to facilitate the development of a citywide broadband, open access network, and in view of the immediate opportunity to realize this goal through the Northland cable system upgrade, an alternate concept is recommended: - That Northland build, own and operate, either by itself or by contract with others, a broadband network through its upgrade and provide institutional services to the City and other qualified institutional users. - The large group of institutional customers in effect become the "anchor tenant" for the new network and represent an instant, stable, long term customer, that will immediately generate revenue to alleviate less profitable network early startup concerns. - The City and other institutional users will pay a discounted monthly service charge that will be cost based, with credit given for any network capital investment made by the City. · The franchise should therefore require the Grantee upgrade its cable network to provide broadband services in addition to upgraded cable television service. · The upgraded broadband network should have a minimum of 96 backbone strands of single mode fiber, a minimum of 4 strands of single mode fiber in the service drops to connected sites and all network equipment required to activate the network~ · All public sites designated by the City shall be connected to the network and shall have broadband capability for bi-directional voice, data, and video communications between connected sites. · The Grantee shall prepare, and obtain approval of a design from the City, for the upgraded network, complete with activation network equipment, within 130 days of the effective date of the renewed franchise agreement. · In lieu of constructing duplicate facilities, Grantee shall seek authorization and uSe such existing fiber owned by any other parties, as suitable and available, for incorporation into the upgraded network. · The Grantee should complete and have the upgraded network ready for service within nine (9) months after the effective date of the renewed franchise agreement. · The Grantee shall pay the cost of the upgraded network including service drops to designated City and other institutional sites. Extensions of the network and service drops to future City sites and all non-city institutional sites shall be provided at the expense of the user requesting connection. · The Grantee shall own, operate and maintain the upgraded network to meet or exceed FCC standards at all times, and may charge the City and other institutional users a monthly usage fee. The usage fee shall take into consideration and give credit for any network capital investment made by the City or other institutional user. · The usage fee should also be limited to Grantee's direct costs, subject to audit by the City, and should be a credit on its franchise fee due. End of cable television related recommendations Metropolitan Communications Consultants 8/31/01 I I Cable Television Related Needs and Interests Page 7 I B.4 PAST PERFORMANCE- Compliance with Franchise Required Provisions I reference I compliance Franchise Required Provisions ~ ,~ ~. ~ ~ ~_ ConstnJc~ie~ & excavation in ~hts of way PAHC 11 08 No cont~ry records I fright-of-Way Use PARC 11112 Sectlen 4: Compan]f Liab|llt~ Indematificatio# e! C|ty~ and Insurance Bodily injury, $1 m Per occurrence France 4(3)(a) 3 x A2.3 -OK every year except for 7/88-7/89, BI i Property damage, $1 m per occurrence France 4(3)(b) 3 x combined was $1 m, ffierea~ter comptiant Auto coverage, BI & PI e~ $1 m/occurrence Franch 4(31(c) 3 x Endorsement for complete op. con-ramie France 4 3 d 3 Designatinn of addffionall~ insureds France 4(3)(e 3 x Not spucified on certificates of insurance I File certificate with City Clerk Franch 4(3)(f) 3 Section 8: System Standards FCC and NCTA recommended practices Franch 5(1 !(a) ~L4 '~ No contras/records i Inffia]>23 channels, stereo;3OOf4hz, 30 ceannels Franch 5( I)(c 4 ~ __ _ 330Flhz within 3 years, >35 channel capacity France 5(1)(c) 4 ~ __ S6 - Indicates that this goal was met If >6 cities in Exh A have >400f4hz w/54 channels PA France 5(1 )(c) 4 Not No request records can request similar rebuild to 400 Mhz A~plicabffi 55 - Council letter only to consider public bearin9. I Access limitin~ devices upon subscriber request France 5(1 ~(e) 5 No contrary records Initially, 1 channel for schools and gev. w/step up based on Mhz and utifization France 5(1 )(t) 5 ~/ Ch 21 was used in 1993, still in use per $9 of 3/23/0 ConnectionstoP£Gagenclesutilizi~accesschanne] France _5(1)(f) 6 ~loco~t~ records I Upunrequest, fumishcharac[er~]enerator ___France 5(1)[g) 6 '~ 5 2- Furnished to C~ le 1993 +$12,500 le 1994 Option of termidatid~ se~ces o~Jtside residence Franch 5(1 !(h) 7 ~o contrary records Construction computible, not intedere with traffic. France 5(Z) 7 % contrary records Provide quality television reception France 5(3) 7 x 57, $10 - oJstomer complaints I Instalintion conform to NEC Franch 5(4) 7 '40 contrary records f~e outlet to schools, max of 3 to city offices Fra~h 5(5) 8 ~1o contrary records Section 6: Ptug~ammin~ Focal pro~ramrnie§ Franrh $ 8 ~ customer complaints, see su~e~ Section 7: Customer Service i Service rules to subscribers France 7 8 ~/ kppears to have been followed ;?4 hr. telephone response Franch 7(1) 9 x ~ 21 - Not replying to customer record complaints requid~ service calls ~8 - No timely response Repairs and responses on day of customer contact, if ~ 21 - Not replying to customer I possible Franch 7(2-5) 9 x ~8 - No timely response Pro-rata rebate for 24 consecuti~ hour interruptions Franch 7(8) 10 No conlrary records Seztion 8: Condition on Street O(cupaa~T m use Franch 8 I 0 Restoration Franch 8 10 Relocation Franch 8 10 Placement of fixtures Franc~ S 11 I l:~-or~ r~-~ernent~f-lacilitles _ --'-- -~r~cT' ---8- 11 ....... No ¢ontra~ records Interruption of company facilities France 8 11 Tree trimrnin~ Franch 8 12 Underground France 8 12 Exhibit 1: Operator Compliance with Franchise Required Provisions I i Metropolitan Communications Consultants 8/31/01 Cable Television Related Needs and Interests Page 8 ! B.4 PAST PERFORMANCE- Compliance with Franchise Required Provisions (continued) m Franchise Required Provisions ~ ~ ~ ~_ ~ ~_ ~ comments Section 9: Discriminatory practices prohibited Servkes available city c/tizen$ Franch 9 t 2 No contrary records[ m No d st nctiofl to persons-similarly situtated Franch 9 12 No contrary records m Section tO: Coverage Areas Section 11: Transfer of Ownership City approval of sale, transfer, lease, asskjnmenl Franch 11 12 I File copy within 60 days after approval Franch 14 .~ I m Section t3: Franchise Fee 1st 5 )~s, franchis~ fee of 4% of ~ross receipts Frar~h 13(1) 15 ~/ AfleF 5 )TS, fi-anchise of 5% of gross receipts Franch 13(1 ) 15 x Al - Audited by city, shot: ($5,659) m Al2 - Fee calculation~error, disputed (Baltknore case) Fee to be paid before 7-15 and 1-15 Franch ! 3(2) 15 x A7, A18, AI 9, AZ.O, AZ6 - tardy (mostly a few da)s) A5 - Computations unclear up to 1990 · Finandal report showing basis for computations Franch 13(3) 15 x A4 - Not in compliance with city request to use form m furnished the Cfty Treasurer with each payment ~,14 - No record of computations found Since 1996, no record of computations usi~ Ob/form Section 14: Review of System Standarlls Annualtesto~facilities'performance Franch 14 16 x S1 (1995 resultsnoncompliant, remedidd b),1996 · Annual report to City at time it is sent to FCC Franch 4 16 No contrary records Section 15: Rates [] File a complete schedule showing afl rates within 30 m days of peginnin9 of franchise term Franch 15(2) 17 Provide city and all subscribers a minimum of 30 da~ written notlce of rate changes Franch 15(3) 17 x A15,16, 24 - city and customers not tirnely nedfied · , Basic services 15% and installation 50% discount for 17 customers over 62 or permanently disabled with income Franch 15 r x A17 -Providing discounts but with discrepandes below puverb/level. 18 I Section iG: Local Business Officer gecords~ and Reports · ] Local olftce to provide convenient access I I ) I [ I [ lA6 - Did not meet FCC normal ~siness hours of at least m Franch 16 1 g x and normal besiness hours I I I I I I I I°ne n'ght/week and/°r some weekend h°urs [] Annual report within 120 da)s of close of co·pun's · Y I Franch 6 18) / x I IA3-AIO AZ4Annualrenor~fumished, butiocomnlete yea end upon city request I I ~ I I I ~ m Se~imt 17: Annual Meeting Annual meeUng por Gty toques o revidw puriormance ofprecedin~r i FranchI 17 119 II I m Section 18: S)'$tem Oata I~n~mj~:jf~::~uPr~a?ndpd.:taatanytimeOuFing, .. [ Frar~hI 18 tlOI IIIIN°contraryrecords I m Section 19: Franchise Renewal~ Permit and Inspection Fees Pay reasonable City cosL~ of franchise renewa perm s . I I Pay city for'oul ~f pocke expenses _ · Iwithin3Oda)'s°freceiptofinv°ice I Fra"ch I 19 119I t I I I 12.9.88 Section 23: Emergency Use Ius~e°fc°mpanyla~"ti~duringl°caleme~encids I I I I I I I INoc°~t~re~or~s I I Exhibit 1 (continued): Operator Compliance with Eranchise Required Provisions i Metropolitan Communications Consuhants 8/31/01 I Cable Television Related Needs and Interests Page 9 I C.5 NEEDSAND INTERESTS-Compliance with Subscriber Current Needs and Interests I I 354. respondents number % yes no Respondent is within Citylimits 343 100% $$% 12% I 354 respondents Had opinion Opinion given Opinion Details Respondent is satisfied with: I A. Customer Information & notices 1, Products Services Options 2. Rates i 3. Use, Lineup 4. Billing complaint procedures 5. Advance notice of changes i B. Billing Procedures 1. Clear, Concise, Understandable 2. All itemized 10% 3. Summary provided 9% I 4. Timely refunds 5% 5. Proper discounts 18% 6. Acceptable due dates & grace period 6% I C. Service Quality and Reliability 1. Picture Quality 5% 12% 2. Sound quality 5% 8% i 3. Frequency of outages 5% 11% 4, Signal amplified by extra equipment 5. Service corrections within 1 day of request I D. Installation and Repair Service 1. Tel & otc customer service satisfactory 8% 5% 2. Appointments made and kept 6% 7% 3. Outages promptly corrected 4% 9% i 4. Other probiems promptly corrected 4% 12% 5. New se~ces promptly installed 7% 13% 6. Jnstallation workmanship satisfactory 9% 6% 7. Employes identify themselves 11% 7% I E. Programming 1. Basic Service I 2. Expanded Basic 3. Premium Channels 4. Pay-per-View I F. Monthly Rates 1. Basic Service 2. Expanded Basic 3. Premium Channels I 4. Pay-per-View I Exhibit 2: Compliance with Subscriber Current Needs and Interests I i Metropolitan Communications Consultants 8/31/01 I Cable Television Related Needs and Interests Page I0 C.6 NEEDS AND INTERESTS - Subscriber Future Needs and Interests 354 respondents Had opinion Opinion given do not Opinion Details Other Topics: numoer % yes no nnow I strong yes yes no stm~j sm G. Household increasing TV viewing 342 9G% 2D% ?5% 4% 20% 75% H. In the last 12 months, 1 h~e purchased t. Cable television sen/ice 322 100% 35% 65% 0% 35% 65% I 2. Satellite Dish 325 100% 17% 83% 0% 17% 83% 3. Hkjh Oefinition Television 307 98% 2% 96% 2% 2% 96% 4. Digital Video Disc ( DVD) 310 99% 17% 83% 1% 17% 83% 5. Internet Access 321 99% 46% 53% 1% 46% 53% I. In the next 12 months~ I will purchase 1. Cable television sen/ice 316 89% 12% 77% 11% 12% 77% m 2. Satellite Dish 333 75% 30% 45% 25% 30% 45% 3. High Definition Te~evisi~ 316 83% 5% 75% 17% 5% 78% 4. Digital Video Disc (DVD) 315 84% 15% 69% 16% 15% 69% 5. [ntern~ Access 3tO 92% 30% 62% 8% 30% 62% I. My household would watch 1. Locally produced programs 319 87% 73% 13% 13% 24% 49% 9% 4% 2. City Council meetings 320 79% 51% 28% 21% 12% 39% 21% 8% City gov. inlormational and community 3. programs and events 319 78% 53% 24% 22% 10% 43% 18% 6% 4. Educational programming & curriculum 317 75% 57% 18% 25% 15% 42% 15% 4% I K. 14y household would like 1. More catv channels. 313 86% 73% 14% 14% 39% 34% 12% 2% · 2. More music channels. 308 79% 47% 31% 21% 21% 26% 23% 8% I 3. High~efinition television prorammiog 313 53% 28% 25% 47% 11% 17% 18% 8% 4. A program blocking service 310 62% 22% 40% 38% 7% 14% 30% 10% 5. High-speed cable intemet access 315 69% 40% 29% 31% 19% 21% 17% 11% · 6. Catv k)ca{ eme~genc~ a!ert messages 316 88% 79% 9% 12% 35% 45% 6% L. I Suppor~ the City and catv operator working to develop h~h-speed cable intemet access 315 74% 54% 20% 26% 24% 30% 11% 10% 14.14), future needs and interests 1. Are met without any changes 315 84% 12% 73% 16% 3% 8% 27% 45% Had opinion Opinion given Willing to pay S/mo 318 responderds number % yes no $1 $3 55 510 SZO I Il. Willing to pay S/mo for additional features 1. Local news, arts, and sports programming 307 100% 27% 73% 18% 5% 3% 0% 0% 2. City gov, community programs & events 306 100% 17% 83% 13% 3% 1% 0% 3. educational programs and curriculum. 298 97% 19% 79% 10% 6% 2% 0% 4. Ten (10) additional televsion channels. 295 96% 43% 53% 21% 14% 6% 2% 5. Ten (tO) additional music channels. 292 95% 19% 77% 12% s% 2% m 6. High definition television (HDl~/) programming 291 95% 17% 78% 9% 5% 2% 0% 0% 7. Block out sdected programs 293 95% 8,% 88% 7% 1% 8. High-speed internet access over cable. 295 96% 39% 57% 8% 5% 6% 11% 9% 9~ Local emergency alert messages 297 97% 29% 68% 24% 3% 2% Exhibit 3: Subscriber Future Needs and Interests I Metropolitan Communications Consultants 8/31/01 I TELECOMMUNICATIONS RELATED NEEDS AND INTERESTS Page 11 I D. FINDINGS AND RECOMMENDATIONS 7. Introduction and Background I The City of Port Angeles recognizes tl~at government support and leadership of telecommunications infrastructure development can catalyze economic development. Putting its vision into action, the City on i October 17, 2000 committed to ensure broadband telecommunications in Port Angeles by approving a telecommunications Action Plan. Taking advantage of the coincidental occurrence of North/and's franchise renewal request, the City therefore expanded its cable-related renewal evaluations to also include determination of community telecommunications needs and interests. I For the telecommunications needs and interests determination, the City of Port Angeles and MCC collaborated on a web-based survey, conducted interviews with select organizations within the community and held a Telecommunications Needs and Solutions Workshop. These activities are I summarized below: · Internet Survey. The Internet survey began on March 9, 2001 with a letter of invitation from the City's Economic Development Director sent out to a representative list of local businesses, community I and service A sample of the forms is given in G.17. providers. Appendix At the conclusion of the survey in late April, 107 responses were received. I · Interviews. Personal interviews were conducted in February 2001 with Clallam County, the Port of Port Angeles, the Port Angeles School District, Peninsula College, and Olympic Medical Center to receive input on telecommunications needs and to introduce the City's upcoming on-line survey. I Additional telephone interviews were conducted with Olypen, TenForward, Virginia Mason Port Angeles, Daishowa America and FairPoint Communications. Both telephone and personal meetings were held with Qwest and Century Telephone. All were invited to provide input via the City's on-line i survey or by other means. A list of the various parties contacted and interviewed is given in Appendix G.15. · Telecommunications Workshop. On March 30, 2001, an all day Telecommunications Needs and I Solutions Workshop was held at the City Fire Station, facilitated by City representative Larry Dunbar, Dennis Bragg of Den-Ree Productions, and Brian Roberts of MCC. The workshop report Executive Summary is contained in Appendix G.16. The full report and findings may be found in the City's I Business Planning Analyses, on file in the City's Department of Public Works and Utilities. 8. Telecommunications Related Findings I The major needs and interests findings, gained from the survey, interviews, and workshop, are: Telecommunications Needs and Interests I · Broadband connectivity is the most important need not being met by the present infrastructure. · Open access and competition are important for the consumer's benefit, enabling more options, better service and lower prices. I · Local government's top need and use of broadband connectivity is to connect offices and departments scattered at various locations around the community. · Broadband connectivity is needed for video conferencing and remote training and education for I people who cannot travel to attend school. · Businesses need fast but affordable telecommunications services to enable competition and the ability to provide services via the Internet. IA is if the benefit, in the shortest time is to be achieved. deployment greatest period · A "limited" deployment is a possible path for initial network development, with partnerships as the i key to expansion and overcoming service limits. I Metropolitan Communications Consultants 8/31/01 Telecommunications Related Needs and Interests Page 12 · Economic development and education opportunities are the primary justification for a community broadband network. Institutional Network · The City has the opportunity to obtain a governmental and educational institutional network through the cable franchise renewal. An institutional network will limit broadband service to non-commercial public, educational and governmental users but will allow dramatic cost-savings and efficiencies in their operation. - A list of governmental, educational and public institutional sites has been prepared and is given in Exhibit B of Appendix H.20. · Institutional networks are defined in 47 USC §531(f) "Institutional network defined Fcrt purposes of this section, the term "institutional network" means a communication ne~cwork which is constructed or operated by the cable operator and which is generally available only to subscribers who are not residential subscribers." · The City's authority to require an institutional network from a cable operator is given in 47 USC §541('o)(3)02)) which states that "Except as otherwise permitted by sections §531 and §532 of this title, a franchising authority may not require a cable operator to provide any telecommunications service or facilities, other than institutional networks, as a condition of the initial grant of a franchise, a franchise renewal, or a transfer of a franchise." · Some question has arisen regarding local govemments' ability to require institutional networks as a result of a 5th Circuit Court ruling in a case between the City of Dallas and the FCC (165 F3rd 341 at page 350 and 351 - Dallas vs. FCC, 1999). · It should be noted however, that the case however, concerns open video system (OVS) operators (not cable operators), where FCC rules, 47 CFR §76.1505(e) (1997), give local governments authority to require channel capacity on institutional networks for educational or governmental use only if the OVS operator has built an institutional network and has capacity available. 9. Te[ecomm-nicatlons Related Recommendations On the basis of the findings of current and future telecommunications related needs and interests of the community, the following recommendations are made for inclusion in a new cable franchise ordinance: · The City should capitalize on the opportunity provided by the current cable franchise renewal proceedings and aggressively negotiate with Northland Cable to develop a broadband infrastructure through upgrading of the existing cable television infrastructure. · The City should insist that the new broadband infrastructure have "open access" available to qualified Northland affiliated or non-affiliated service providers. · The City should negotiate with Northland to ensure that as much fiber as possible in excess of that required to meet Northland's cable television needs is installed, at a minimum 48 strands of excess single mode fiber. · The upgraded infrastructure should connect subscribers at a minimum with capability to receive cable modem service with the option of direct fiber drops to larger customers needing more bandwidth and willing to pay for the required fiber drop. · The City should be willing, on a reasonable basis and as legally permitted, to extend the franchise term, reduce the compensation and benefits, and even invest resources as incentives to Northland. End of telecommunications related recommendations Metropolitan Communications Consultants 8/31/01 Telecommunications Related Needs and Interests Page 13 - Current Services and Future Subscriber Needs E.IO NEEDS AND INTERESTS 107 Questionnaires Totals Qwest FairpoJnt Unspecified Voice communications SOHO 2 6 4 1 2 6 4 1 Key 9 76 16 Y 6 62 8 1 3 14 8 0 Centrex 10 253 26 2 8 235 4 2 2 18 22 0 0 PBX 22 100 50 4 14 79 46 2 2 4 4 1 6 17 1 ~I/~N 2 2 2 2 Unspec~ed 62 214 84 8 33 155 72 8 3 9 8 0 26 50 4 0 Totals 107 651 180 16 65 539 134 14 10 45 42 1 32 67 4 1 Se~ce Agreements 40 8 29 6 107 Questionnaires Totals ~est Fairpoint Unspecified communications 1 1 1 1 Sccur~/Honitoring Webc~ 6 6 2 2 1 I 3 3 2-way ~deo 5 5 3 3 2 2 ~her 6 6 2 3 3 ~ I 1 2 2 1 Tot~s 19 19 107 Questionnaires Totals ~est AT&T Unspecified communications ~zl~voice 8 8 70 1 ~ 3 54 1 5 5 16 D~ita~ voice Voice/data 2 2 4 2 2 4 ~her 6 6 26 1 6 6 26 1 Totals 40 40 159 7 2 2 4 0 1~ 1~ 97 ~ ~5 25 58 4 Exhibit 4: ~oice, Video, ~ireless Communications (see Chart 1 of 4) Metropolitan Communications Consultants g/31/01 Telecommunications Related Needs and Interests Page 14 E.10 NEEDS AND INTERESTS - Current Services and Future Subscriber Needs (continued) 107 Questionnaires Totals Qwest Fairpoint Unspecified Data ~ ~ .o ~ ~ .o ~ ~_ ~ ~ o. ~ ~ ~ communications ~ ~ ~~ ~ ~ ~ '~ ~ ~ ~ '- ~ ~ ~ '-~ Frame relay 4 14 3 13 ~ ~ DS-1 5 11 15 ~ 3 g 14 3 1 ~ 1 2 ~ DS-3 2 Z 4 1 1 3 1 1 1 0~-3 1 1 2 1 1 2 ~keless 3 2 4 1 4 2 2 Totals 15 30 25 3 9 23 Z3 3 ] 3 0 0 3 4 2 0 Se~ice Agreements 16 2 9 1 3 0 4 ~ I 107 Questionnaires Totals OlyPen TenForward Unspecified Internet access u~ ~ w ~ = L~ Dialup56 46 63 5 18 Z2 31 12 10 13 2. ~ 14 19 3 4 Dsl144 5 7 15 4 4 6 8 4 1 1 1 6 I Dsltgz 2 2 1 0 1 1 1 1 1 Dsl384 5 9 24 3 4 8 17 2 1 1 3 1 4 I Dsl768 1 2 4 0 2 1 2 1 1 Dsl 1100 I 1 15 0 I 1 12 3 Wireless 0 0 5 0 5 · Other 9 17 20 2 9 17 20 2 m · Totals 69 101 89 2.7 32 47 45 18 14 18 7 3 23 36 37 6 Service Agreements 43 9 16 6 10 1 17 I 107 Questionnaires Totals Qwest Fairpoint Unspecified I Local/wide area ~- ~ ~ ~ ~- ~ ~ '~ ~ ~ ~ '~ ~- ~ ~ ~ computer networks ~: ;~ ~ ~ ~: ~: 1 1 1 I m Apppletalk m ARCnet 1 1 1 1 Token Ring 1 1 7 1 1 7 FDDI 4 3 I m m Ethernet 45 131 289 12 23 91 165 8 7 13 10 2. 15 27 111 Z Other 9 9 7 3 3 2 2 3 4 4 4 Totals 57 143 307 12 26 94 171 8 9 15 13 2 22 34 123 2 m Exhibit 5: Data Communications, Internet Access, LAN/WAN Computer Networks (see Chart 2 of 4) m I Metropolitan Communications Consultants 8/31/01 · m I Telecommunications Related Needs and Interests Page mE.10 NEEDS AND INTERESTS - Current Services and Future Subscriber Needs (continued) ! 07 Questionnaires Totals Owest Fairpoiot Unspecified cable Respondent owns plant m Premise Voice 11 20 11 8 12 6 I 3 2 5 5 Premises Data 12 17 4 10 9 9 3 6 1 Z 2. 8 I 2 Premise Video 4 5 1 3 3 1 1 m osP Voice 5 4 1 2 2 3 2 1 osP Data 4 1 2 1 1 1 3 1 1 1 osP Video 1 1 1 Totals 37 47 6 25 24 Z6 4 14 2. 3 0 Z 11 18 2 9 ! 107 Questionnaires Totals Qwest Fairpoint Unspecified m Have gesouKes m Telephone Competency 69 35 49 25 7 4 13 6 Data Competency 52 32 37 ZZ 5 3 10 7 Video Competency 44 11 34 9 5 2 5 0 m Current Telephone Funding 71 46 49 29 9 7 13 lO Current Data Funding 54 35 39 24 5 3 10 8 Current Video Funding 44 17 34 11 5 3 5 3 Future Telephone Funding 67 32 45 18 9 6 13 8 m Future Data Funding 49 21 35 13 4 2 10 6 Future Video Fundin9 45 17 35 1 Totals 495 246 357 164 53 32. 85 50 m 107 Questionnaires Totals Qwest Fairpoint Unspecified Opinions ,~ z m PA needs competition 25 22 11 3 17 18 8 2 4 1 1 1 4 3 2 Would change service m ~roviders if same se~c~ 22 30 6 3 16 22 5 2 4 2 1 2 6 1 lower cost Would change providers ii same service, same cost, 29 23 8 2 21 16 7 1 5 2 1 3 5 1 m but higher speed ~ ~ ~o o ~ o ~ ~ o~ ~o ~ o _ ~ .- ~ ~ ~o :~ ~ ~ ~ ~ ~o z m Willing to pay extra to 20 2.4 9 3 16 16 meet future needs mExhibit 6: Respondents' Resources (Chart 3 of 4) and Opinions (Chart 4 of 4) m Metropolitan Communications Consultants 8/31/01 Appendices to Cable Television and Telecommunications Needs and Interests Report August 31, 2001 Prepared for Yhe City of Port Angeles P.O. Box 1150 321 East Fifth Street Port Angeles, WA 98362-0217 METROPOLITAN COMMUNICATIONS CONSULTANTS Seattle: 5847 McKinley PI. N., Seattle, Washington 98103 Tel: 206.522.6778 Fax: 206.522.6777 Tacoma: 1201PacificAvenue,$ultelTO2, Tacoma, Washington 98402 Te1:253.272.1636 Fax:253.272.1482 www.mcco.com APPENDICES TO CABLE TELEVISION AND TELECOMMUNICATIONS NEEDS AND INTERESTS REPORT August 31, 2001 APPENDICES page F. Cable Television Related Appendices 11. CATV Sample Survey Forms 1 - 3 12. CATV Exhibit 2 Charts: Subscriber Current Needs and Interests Charts (7 of 7) 4 - 10 13. CATV Exhibit 3 Charts: Subscriber Future Needs and Interests Charts (6 of 6) 11 - 16 14. CATV Subscriber Comments 17 - 30 G. Telecommunications Related Appendices 15. Telecom Providers and Users Contacted 31 16. Telecommunications Needs and Solutions Workshop Executive Summary 32 - 33 17. Telecommunications Sample Survey Forms 34 - 36 18. Telecommunications Exhibit 4-6 Charts (4 of 4) 37 - 40 19. Telecommunications Survey Comments 41 - 42 H. Cable Television Franchise Renewal 20. Irfformal Proposal for the Cable Franchise Renewal 43 - 83 Exhibit A - Acceptance of Franchise 84 Exhibit B -- Grantee Furnished Connections to Community Facilities 85 - 88 Exhibit C - Subscriber Service Standards 89 - 96 Exhibit D - Subscriber Service Reporting Requirements 97 - 98 Exhibit E -- Public Utility Tax Ordinance Amendment 99 Exhibit F -- Northland Fiber Upgrade Plan and Node Service A 100 This document is on file and available for inspection at the offices of the City of Port Angeles, 321 East Fifth Street, Port Angeles, WA 98362-0217 (attention: Mr. Larry Dunbar). Copies may be obtained for the cost of printing. Metropolitan Communications Consultants 8/31/01 APPENDIX F.11 - CATV SAMPLE SURVEY FORMS Page City of Port Angeles Residential Cable Television Service Survey The City of Port Angeles is asking for your input before renewing the franchise with Northland Cable Television. The information you provide is considered confidential, will not be disclosed, and wilt only be used for the City's survey. INSTRUCTION TO COMPLETE THE SURVEY: Please provide your name and contact information, and respond to each question by darkening the circle with a pencil or pen. Please select the response that comes closest to your own opinion. A space is provided at the end of the survey if you have any additional comments or recommendations you would like to share. After you have completed the survey please return it to: City of Port Angeles, P.O. Box 1150, Port Angeles, WA 98362-0217 Contact person Service address Telephone number E-Mail address Please tell us about your experience with Northland Customer Znformation and Notices Satisfied Satisfied Dissatisfied DissatLsfied---Enow 1. Information on products, services, options o o o o 2. Information on rates o o o o o 3. Channel lineup notices o o o o o 4. Billing and complaint procedures o o o o o 5. Advance notice of changes o o o o o Very Very Don't Billing Procedure~ Satisfied Satisfied Dissatisfied Dissatisfied Know 6. Billing is clear, concise and understandable o o o o o 8. A summary of bill is provided o o o o o Very Very Service Quality and Reliability Satisfied Satisfied Dissatisfied Dissatisfied I Appendix F.11 - CATV Sample Survey Forms Page 2 21. ~nstaHation Other television topics Yes No Know 24. ! am a citizen of Port Angeles and live within the City limits o o I 25. My household is increasing the time it spends watching television o o o 26. During the last ~,2 months, have you purchased one or more of the following? a. Cable television o o I b. Satellite dish o o c. High definition television o o o d. Digital video disk (DVD) o o o i 27. During the next 12 months, do you plan to purchase one or more of the following? b, Satellite dish o o o c. High definition television o o o I d. Digital video disk (DVD) o o o Cable television services I P~ease indicate the service tier(s) you subscribe to and your satisfaction/dissatisfaction with programming selection, number of channels and monthly rates Current Programming Number Monthly Rates Service Tier Subscriber Selection of Channels Current w/o tax I brief description Yes No Satisfied Dissatisfied Satisfied Dissatisfied Rate Satisfied Dissatisfied 28. Basic (27 channels) o o o o <1 o $29.95 o o I 29. Expanded Basic (39 channels) o o o o o o $40.95 o o 30. Bronze Digital (56 channels) o o o o o o $48.99 I 31. Silver Digital (60 channels) o ~ o o o o $58.99 o o 32. Gold Digital (62 to 66 chart) o o o o o o $67.99 o o 33. Platinum Digital I (70 channels) o o o o o o $79.99 34. Pay per view (22 channels) o o o o o o $3.99 each o o I May we have your opinion? Strongly Strongly NO I My Future Needs And Znterests Support Support Against Against Opinion 35, My household would watch locally produced programs (such as news, i arts and sports) if they were 36. My household would watch City 37. My household would watch informational programs about City I and events if they were programming and curriculum if they I Metropolitan Communications Consultants 8/31/01 Appendix F.11 - CATV Sample Survey Forms Page 3 39, Ny household would tike more 40. My household would like to more 41, My household would like to receive high-definition television programming (HDTV) over the cable television o o o o o 42. lq,/household would like to subscribe to a service that could block out 43, ~ly household supports the City and Cable Operator working together to develop high-speed intemet access 44. lq¥ household would subscribe to high speed intemet access I I I How much more will you pay to satisfy your needs and interests? I I l · I I Please returB your comp}eted scrve¥ to: City of Port Angeles, P.O. Box 1150, Port Angeles, WA 98362-0217 I I APPENDIX F.12 - CATV EXHIBIT 2 CHARTS Page 4 SUBSCRIBER CURRENT NEEDS AND INTERESTS CHARTS RESPONDENT'S LOCATION Respondent is within City Limits [3 yes [~ no SUBSCRIBER CURRENT NEEDS AND INTERESTS CHARTS (1 of 7) - RESPONDENT IS SATISFIED WITH: A. Customer Information and Notices [~ don't know [3 yes [] no $9% 52% 56% 54% 51% 60% 44% 40% - 20% 1- Products. 2. Rates 3. Use. Lineup 4. Billing 5.Advance Services complaints notice of Options changes Metropolitan Communications Consultants 8/31/01 Appendix F.12 - CATV Exhibit 2 Charts Page 5 SUBSCRIBER CURRENT NEEDS AND INTERESTS CHARTS (2 of 7) - RESPONDENT IS SATISFIED WITH: A. Customer Information and Notices 1. Products, Services Options [] don't know [] strong yes [] yes n no [] strong no 2% A. Customer Information and Notices 2. Rates [] don't know [] strong yes [] yes r':l no m strong no 2% 5% A. Customer Information and Notices 3. Use, Lineup [3 don't know []strong yes [:]yes []no r~ strong no 1% 5% Metropolitan Communications Consultants 8/31/01 I Appendix F.12 - CATV Exhibit 2 Charts Page 6 I SUBSCRIBER CURRENT NEEDS AND INTERESTS CHARTS (3 of 7) - RESPONDENT IS SATISFIED WITH: I A. Customer Information and Notices 4. Handling of Billing Complaints i [] don't know r~ strong yes [] yes ~ no [] strong no I I $% 12% I I A. Customer Information and Notices 5. Advance Notice of Changes I [] don't know [] strong yes [] yes ~ no [] strong no I I Z% 5% I I B. Billing I [] don't know [] yes Iii no I ~ I i Metropolitan Communications Consultants 8/31/01 Appendix E. 12 - CATV Exhibit 2 Charts Page 7 SUBSCRIBER CURRENT NEEDS AND INTERESTS CHARTS (4 of 7) - RESPONDENT IS SATISFIED WITH: B. Billing 1. Clear, Concise, Understandable [3 don't know [~ strong yes [] yes [~ no [] strong no B. Billing 2. All itemized [] don't know ~ strong yes [3 yes I~ no ri strong no B. Billing 3. Summary provided [] don't know ~ strong yes n yes [] no [~ strong no 4% lZ% 9% Metropolitan Communications Consultants 8/31/01 Appendix F. 12 - CATV Exhibit 2 Charts Page 8 SUBSCRIBER CURRENT NEEDS AND INTERESTS CHARTS (5 of 7) - RESPONDENT IS SATISFIED WITH: B. Billing 4. Timely Refunds ~] don't know [] strong yes I-I yes [] no [~ strong no Z% 5% B. Billing 5. Proper discounts [] o t know (~strong yes Dyes rand mst ong no t% 5% lO% B. Billing 6. Acceptable Due Dates & Grace Period [~ don't know [] strong yes [] yes [] no [] strong no Metropolitan Communications Consultants 8/31/01 Appendix E.12 - CATV Exhibit 2 ChartS Page 9 SUBSCRIBER CURRENT NEEDS AND INTEREST5 CHARTS (6 of 7) - RESPONDENT IS SATISFIED WITH: C. Service Quality and Reliability III strong yes C] yes [] no I strong no $0% $2% C. Service Quali~ and Reliability 4. Signal amplified by extra equipment C]st~ong yes E3¥es C. Service Quali~ and Rellability 5. Service Corrections Made within I Day of Request C~ strong yes ~3yes Metropolitan Communications Consultants 8/31/01 I Appendix F.12 - CATV Exhibit 2 Charts Page 10 I SUBSCRIBER CURRENT NEEDS AND INTERESTS CHARTS (7 of 7) - RESPONDENT IS SATISFIED WITH: I D. Insfallation & Repair Service r-lyes I O% I E. Programming I [~yes ~no 2O% I Se~'ice Channels i F. Monthly Rates I [~yes E~ no 80% 65% I 60% 0% i Metropolitan Communications Consultants 8/31/01 APPENDIX F.13 -CATV EXHIBIT 3 CHARTS Page 11 I SUBSCRIBER FUTURE NEEDS AND INTERESTS CHARTS (1 of 6) I G. My Household's TV Viewing is Increasing I [3don't know Dyes reno ! 4% 20% ! I ! H. In the past 12 months, I have purchased: I [3yes I 10o% 80% I 60% 46% 35% · o% ' I I. In the next 12 months, I will purchase: l [3yes I ~ I Metropolitan Communications Consultants 8/31/01 I I Appendix F.13 - CATV Exhibit 3 Charts Page 12 I SUBSCRIBER FUTURE NEEDS AND INTERESTS CHARTS (2 of 6) I J. My household would watch [3don'/know []yes J~no 80% $?% I K. My household would like [] don't know [] yes i~1 no I L. I support the City and catv operator working together to develop high-speed cable internet access I D don't know []yes lano I I I Metropolitan Communications Consultants 8/31/01 I Appendix F.13 - CATV Exhibit 3 Charts Page 13 I SUBSCRIBER FUTURE NEEDS AND INTERESTS CHARTS (3 of 6) I M. My future needs and interests are satisfied without any changes I Ddon'~ know Dyes I~no I I I I N. Willingness to Pay for Additional Services: 1. Local News, Arts, & Sports Programming I N. Willingness to Pay for Additional Services: 2. City Government, Community Programs I I Metropolitan Communications Consultants 8/31/01 Appendix F.13 - CATV Exhibit 3 Charts Page ] 4 SUBSCRIBER FUTURE NEEDS AND INTERESTS CHARTS (4 of 6) N. Willingness to Pay for Additional Services: 3. Educational Programs & Curriculum ?9% 40%- 20% O% u~willin g $ I~mo $ 3/mo $5/mo $ O/mo $201mo N. Willingness 1o Pay for Additional Services: 4. Ten Additional Calv Channels N. Willingness to Pay for Additional Services: 5. Ten Additional Music Channels Metropolitan Communications Consultants 8/31/01 ! Appendix F.13 - CATV Exhibit 3 Charts Page 15 I SUBSCRIBER FUTURE NEEDS AND INTERESTS CHARTS (5 of 6) I N. Willingness to Pay for Additional Services: 6. High Definition Television Programming I N. Willingness to Pay for Additional Services: 7. Program Blocking Service I I N. Willingness to Pay for Additional Services: i 8. High Speed Cable Internet Access I Metropolitan Communications Consultants 8/31/01 Appendix F.13 - CATV Exhibit 3 Charts Page 16 SUBSCRIBER FUTURE NEEDS AND INTERESTS CHARTS (6 of 6) N. Willingness to Pay for Additional Services: 9. Local Emergency Alert Messages 0% Metropolitan Communications Consultants 8/31/01 APPENDIX F.14 - CATV SUBSCRIBER COMMENTS (as submitted) Page 17 CUSTOMER SERVICE Customer Relations 1. We have been satisfied with our cable television servk:e for the most part. There are some things that we would like to see changed, however. 2.I am not a happy subscriber. 3.They have changed a lot this year 4.Their customer service is not friendly toward customers. 5. When we moved to our new house northland cable refused to provide cable service to our neighborhood, though they provide it east and west of our neighborhood. I think they are too lazy to get out here and get us hooked up. We went with Dish Network 6.We are so dissatisfied with Northland 7.Whenever the topic of cable comes up, the comments are agways negative 8. I found the cable customer service personnel, to be severely umJer trained. My sincere question was met with sarcasm and belittling backtalk. 9. I was 5 minutes late for an appointment with the cable technidan and was then told that I would not be able to have him back for almost 2 weeks, even though I could see his vehicle parked about 2 blocks up the street. 10. Our cable company doesn't care for the opinion of its' customers. The company has a stranglehold on the general public and could care less if the customer is satisfied. ! 1. It would be great if they had employees that didn't lie just to up grade 12. You did not address the ongoing arrogance, hand handed approach to programming and overcharging that this supplier indulges in. I would prefer that you put the service out for bid and get rid of these people, 13.This system is not reliable, does not respond, picks its own wants, ignores client needs. Customer Information and Notices 1. We would like to see more printed monthly guides for digital cable subscribers. It is hard to plan program viewing in advance without printed material to look at for all those extra channels. Z.Didn't like them changing channel fineups after wo had subscribed for certain channels and lineup 3.Print channel listings in numerical order. Channel 31 is not listed in line-up. 4.Is there any way to line up channels by category 5.Give us the channel by number in numerical order. Channel 8 is worthless. 6. Basic is listed 2.7 channels in Ch 31 counted 26 channels in the TV Guide from the local adding paper. 7. I wish that cable would make sure that the paper has all their channels listed, Channel 10 has been different for months, and ~t the paper does not list the scheduling that is actually broadcast. 8. We want the TV guide to reflect the current current for that week. We need more channels like the major metro areas have. WE programs al~ nord the ~c~l n~s b~ck 9. Northland Cable could better use Ch 3 as information channel to announce upcoming channel changes, rate increaSes etc. regeatedfi/ over period of at least several days/;) weeks so that everyone (shift workers, commuters etc.) could see them. Business Hours 1. Insensitive business hours for those who work. Need to be open later than 5pm at least a few days of the week) 2. I would like to see Saturday or evening until 6 PM office hours. 3. When outage happens: No place to call and correct after business hours. Billing Procedures 1. Northland Cable TV keeps checks too long after payment has been submitted before they deposit my check. 2. I'd like to be able to set up an automatic payment for my account, or at the very least, I'd like my bill to get to me sooner. At least a week sooner. 3.Would like a return envelope with bill. Sometimes shows listed don't agree with what is on." 4.When the bill comes out let it reflect the pdce we are quoted instead of a higher price on the bill. Metropolitan Communications Consultants 8/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 18 SERVICE QUALITY Picture and Sound Quality 1. Poor viewing and programs - Wavy streaks at times. 2. Not pleased with reception on channel 5. 3. We tried Digital TV and that was not easy enough to use and noticed no difference in reception.' 4.Why does Channel 4 come in with so much "snow" in it? We watch this channel a lot and are very unhappy about the way it come in. All the rest of the channels are fine. 5.I've subscribed to cable TV all over the country, from coast to coast. This system has the poorest quality reception while charging the most money of any system I've ever had. 6.Bad reception on to many channels, 7.Re: picture and signal quality. Something needs to be done about channels 4 & 5. Sound quality on channel 4, ddves me nuts. 8.The picture quality I have received has always been lousy. The repair people tell me they hope to correct this soon. It's been tea years of promises ~thout changes. 9.Sometimes 4, S, 7, have a lot of sparkles across parts of the screen. 10.We get snowy lines on ch 4, 5 way too much of the time. 11.I lose your signal as soon as I put 23 on. Its the only good station you have. 12.We have had our disappointments with Northland Cable - mostly recjardiog quality of service. 13.Channels 3, 4, 5, 6, are consistently snowy. We like to watch Good Homing Amedcan on Channel 5. Sometimes its crystal clear most of the time ~ts not - we have had the cable company out 2 times and they say there is nothing they can do. 14.Interference by shaky picture and cutting into program, sometimes with lengthy periods. 15.P~cture quality is often poor on some chaeoels a~t thru the year. It may very but there's a~ays so 16.I think $40.79 is plenty to pay. Continually dissatisfied with picture quality of some channels (4, 5, 7, 9 etc.) and BC channels. Outages 1. The outages are much more frequent and the programming much worse. 2. Our main complaint is that the service goes off on a seemingly daily basis. Usually right in the middle of a good show! 3. Then there were the poor quality of pictures on many channels and the frequently interruptions in sen/ice. 4.We are dissatisfied with the quality of our cable. It is always going out on different stations. Lately the stations have been checker- boarding out and when you call for explanations they always give some poor excuse $. Outages- 2 or so times a month. We don't watch much TV because the selection is so poor for the price. 6.I no longer have cable because channels were always being changed without public input and the pdce kept going up without increase in number of channels. Too many news channels were added. Also, when every ~ had a storm, the cable would go out. 7.There should be financial consideration for allowance of down time of outages, Technology 1. i)igita~ sen/ice would be more attractk'e if one could set up tape recorders to tape different channels, blot every program I want to see during the day when I am at work is on the same channel. Why not develop a digital system that does not require a converter 2.With the new digital cable sen/ice, we can watch cable on only one TV in the household. ]'be remote control is a hassle and very slow in changing channels. And, we can no longer record cable programs to watch later. We are very dissatisfied w/th this sen/ice 3.Disadvantages of digital channels kept secret. You cannot record programs while out. Metropolitan Communications Consultants 8/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 19 RATES Senior Discounts 1. I have never heard of any discounts for retired people & I have been retired 3 years. I want money back. 2. I have heard of discount for retired disabled. 3. Am unaware of a discount for retired people. Have never heard of such a thing. 4. I was not aware there was a discount for retirees until I received this survey. 5. I inquired once at the city regarding retired/disable discount and the information regarding income was wrong. What is the current income level? How old/disabled does one have to be? 6.What about the senior citizen discount? Never heard of it. Basic 1. I am in Basic Budget tier at $2.1.99, and am unhappy because they have cut out and re-arranged channels that were available. 2. We feel we are paying too much for basic cable television. A few years ago AbE vas part of the basic coverage and we no longer have that. We are extremely disappointed that we would have to pay for the next level of coverage in order to get LIVE C-Span 3. I canceled my cable service several years ago because of intense dissatisfaction with continually fisiog prices for basic service and increasing discontent with programming available 4. The basic rates have increased too much for the minimum services we receive. We should be receiving more channels and be paying less. There is no competition in cable ]3/, consequently they can charge as much as they want. 5. Northland is getting too expensive at basic level service - Need to have a very basic level of service, Also need to include the Canadian Stations again. 6. Basic TV is too high priced for what we are able to watch (2-13 channels). Some channels omitted but same pdce and programs have been repeated 1-4 times. I do get a senior discount but not satisfied. Too many reruns and sports 7.I think it's ridiculous that the cheapest cable service available is $31,95 a mneth. I'd like to have the option to receive just the lecal Seattle stations ABC, CBS, NBC, Fox, and for than $10 month, less (for PBS) preferably 8. I would like to see service available for around $10.00 monthly that would give you the broadcast channels only. Chan,nels 2, 4, 5, 6, 7, 8, 9,1 O, 1 t,t 2,13, 22, KONG. Bring back Canadian channels 6, 8, and t 0 9. I am currently still getting the Economy package as I was grandfathered in for which I pay $21.99 a month. I would like to get a few more select channels but not at the price they want for the next level of service 10. It costs way more than most other areas in Washington State to subscribe for basic cable on the peninsula. For Example, Lacey, Wa offers basic cable for $1 S/month. 11.I have the grandfathered ultra basic service at $21.99 per month, and my responses above should be considered accordingly. 12. Ny "Economy Basic' is no longer offered and I have been informed I must upgrade. Though have been given no definite date. My rate recently increased from $19.99 to $21.99 per month, though some channels were eliminated a few months ago. 13.Ny concerns are cost - I am retired on a very small income, 14. We are retired on limited incomes. We are concerned with the risin9 cost of Cable services. We find our home would require extensive/expensive alterations to receive digital programming recently available via NW Cable TV. 15. For $29.50 per mo. equals $354 per year. That amount of money should pay for all available channels except your HDTV - Internet - DVD - High Definition TV! You are gouging the public. 16. 'Northland has taken several channels out of basic tier (ABE, Fam, TNN etc) and put them in a higher pdced tier. 17. The quality of the basic services channels keeps going down and the cost keeps going up. It is easy to see why so many people are opting to put their money into satellite dishes, 18. We pay too much already, @ 29.99/mo compared to friends of ours in Victoria with Shaw Cable TV with more channels at less $. t 9. My principal complaint is that we have no Iow cost service option. Because of our geography we must have cable for the most basic channels. I would like to get to channels 2-13 plus Fbi reception for $10 - $15/month. 20. I have lived in PA for t t/2 years and have experienced an increase of over 30% in "Basic Service" from $18 to $28 with a change in some channels but not an improvement in selection. I now have "Expanded Basic' and am considering going back to Basic 2~. I used to have the economy basic service. I found that several channels were repeats, so the total number of channels weren't that many and for the pdce charged (almost $30), I can get direct TV with 40 channels plus the 3 local stations for $26. 22. I understand this is a small market, but in Colorado (where I recently moved from) the cable service that was provided offered approximately 60 channels with expanded basis, and only cost $28.75/month. Basic channels that I miss are: FX, Comedy Ch Metropolitan Communications Consultants 8/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 20 Value 1. What is the .04 other charge every month? Z. ~e pay more and have less - that is not dght. 3. Price has been going up while quality of programming has declined. 4. Nest of my family lives in the Portland, Oregon, area. For their cable services they spend less and receive more channels. Lower cable service should not be a downside to living in a smaller community. 5. The product offered by Northland Cable is poor at best. In comparison with offerings in the Seattle area, we pay the same price for a fraction of the channels. There has been an ongoing practice of removing papular channels from the basic tier 6. I am elderly and easily satisfied with whatever is offered on Cable TV, but I feel like the rate has gone up while the numbers and quality of program has not. 7. Pay more and more money for fewer and poorer channels. 8. Northland Cable can get away with anything they want to. They take away good stations because they have raised their price and give us something no one wants 9. Seems as if NWCT raises rates every time they re-do the line-up, while deletiog channels we mostly enjoy, e.g. ch 16, ch 10, etc. 10. Rates keep increasing at any discretion of Northland, Programs seem to decrease. C)uestidn value received for rates charged. 11. My objection to present cable service centers on the manner they continue to raise rates while decreasing the service. When I signed up for cable 15/the channels which I enjoyed, CSPN, A&E, etc. have been moved off my contract. I resent this 12. All we see is the price 9oiog up - poor selection, movies shown over & over. For a few dollars more we could get 100 more channels 13. I think we pay a high price for what we get in return. I'd like to see Disney added to the Expanded Basic service at no additional charge. I'm considedog going to a satellite dish so I can get it all and pay less, but would be willing to stay with cable 14. There should be no "tier'. All subscribers should have the same access to all non-premium ch·heels. We have had our Canadian statidos taken away. I miss them. These channels gave us an opportunity to see programs at a different time and with much bet 15. Too little for too much.....rates continue to dse and good channels keep being removed. Need local news back......eent us to purchase a dish. 16. We just called Northland Cable and cancelled our service with them. We were fed up with sub standard cable, and paying higher rates than anywhere I have ever lived. 17. For less than $50 a month, a person should be able to access local, network and other telecommunications products RELIABLY. 18. I am willing to pay a fair fee for service. 19. My children in Bellingham and Seattle pay less and get much much more: More channels, better service 20. We pay too much for what services we get already, however if current prices could be maintained and additional services added then I would be satisfied. 2.1. I am peeved that they keep raising the rates 22. Rates are too high already 2.3. I would like cable TV for $25/mo with the feature that the cable ]3/company only had to provide me the channels I want. I would be willing to submit to choosing about 1/2 of the number of channels they pipe in my house now. 24. This cable company has repeatedly proven itself to be unreliable and manipulative of the pricing structure. Complaints to the City and the local company went unanswered. The parent company didn't return calls, 25. Why is cable so expensive, in other cities more channels are offered and it is cheap 26. Northland is outrageously overpriced for channels and service provided. Seattle gets over 2.0 channels more at $5 less a month, 27. When Northland took over in 89 they said they were not going to raise the rates but the first thing they did was just that 2.8. Cost of services has exceeded inflation rates, yet value is less 29. We cancelled our subscription to cable ~ over two years ago because of the continuing rate increases and shifting of channels to higher premium subscription rates. We simply had enough of the monopoly and are now reasonably satisfied with our antenna 30. I think we pay way too much for what we get 31. When we moved to PA in 1989, we paid $17.30 per month for the TV. It is now 42.79 - quite an increase. 32.. Why do I receive four (over the air) UHF channels with my antenna that the cable company doesn't broadcast? for free? Do they really care about this community? Metropolitan Communications Consultants 8/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 21 Value 33. We are very unhappy with what we get for the money. We should not be compared to Seattle rates--this is the only game in town. 34. Very dissatisfied with the local cable service. Channels are implied and promised (e.g.: the Sci-Fi Channel that was advertised and never came) and the rates go up with little increase in service or predud. 35. I am not a cable subscriber. The service is too expensive for the services provided. There should be a more bask package available so we're not paying for what amounts to junk. 36. We pay a set amount of channels/month & have seen many disappear, only a few have been replaced but our fee has never gone down. Why? 37. Rates keep going op for no additional service. What's that all about? Toincreaseservice/buynewequipment/improvequalityofexisting service? No evidence of any of that. 38. I think our cable tv is too expensive. If dish systems get any cheaper, we will switch to that. 39. We really could not afford any more per month as we are retired. 40. We had many more channels/programs available with TCI/AT&T for a less expensive price where we used to live in Snehomish County. We are not complaining about Northland but naturally would like the most for our $$. We normally watch (evening) TV 41. I think the monthly charges far too high! 42. They keep raising the rates 43. I think we should have more channels for the money we are paying. 44. And last of all please lower the rates. 45. Rates are too high. 46. February 2001 charge: I can only get digital Cinemax on 13/because of required box. I didn't want digital but had to, to keep Cinemax. Rate went up $2.00 per month. 47. I think that Northland Cable is much to high priced compared to other cable business in other cities and states. 48, Some of this I didn't know how to answer but the rates are getting so expensive I don't know how long I can keep this. I have a very limited income, but with my disabilities I rely on '13/a lot. I think there are too many news channels 49. The cost is too much now; I am looking in to a Dish that cost less and gives more, Northland does what it wants in this city and gets away with it. That is why more and more people are going to dish. 50. Expanded Basic (39 channels) should all be digital for $50 or less. 51. I object to the increase in rates from $23.95 52. I pay for channels I don't need or even want. I would llke to select my channels and not he forced to pay for channel 53. Cost is too high[ Regulation is a must! 54. They raised rates and provide less service. Would like better music. Ch 9 is the only one with classics. 55 In my opinion we shouldn't have to pay for Channels 3, 8 & 19. They are advertisements. NOT programs for entertainment! ONLY! 56. The monthly charge for the poor programming is far too great at the present time. 57. We have no complaints about the quality of the picture or other services provided by Northland Cable; however, we think their fees are a dp-off! We pay almost $42.00 a month for the Ultra Basic cable 58. The fee is already too high. 59. I think the cost is already too high for the stations we get. Nany of the channels listed under standard basic we can get them free. They have it so you must buy almost everything they offer to get what you would really want to watch. 60. in my opinion, Northland is going to force many retirees off cable with their too frequent rate increases. 61. Price already high. 62. I don't want to pay any more. Low income. I don't need any more television stations. Am satisfied with what I have. Am only living on a small income and paying for my house yet. 63. In 1997 we completed building a now home. A TV cable was laid underground with the utilities. The house was wired for cable TV. It is now 2001, 4 years later and I have and will not be hooked up to North[and Cable. They charge too much Metropolitan Communications Consultants 8/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 22 PROGRAMMING Quality 1. The addition of KONG 6 is a waste. It carries a hodgepodge of programs. Channel 27 CNN, is one of the most watched stations by most retired. A Northland worker told me that they use 27 as their test channel and that is why the station is interrupted 2. To many good stations have been taken off and replaced with bad, worthless programming. 3. Should be more stations like channel 9 with decent programming. Most of the other stations are too full of crud to be interesting. 4. Adding more channels would not appeal to me if the type of programming is the same~-and that is not Northland's fault! Sex and blood and sex and Iow comedy are not my cup of tea! Unless one watches sports that's just about all you get--except talk shows 5. My answers regarding increased TV watching assume that an incredible transformation occurs and the quality of cable and network broadcasting improves. It's really pitiful right now... 6. The majority of channels offered are not what I would prefer to watch. 7. As pdce has increased, the quality of the offedogs has, at least to us, decreased. Example, elimination of History channel. It also appears to us that we are paying a high price for rather limited offerings. 8. Now the offerings are loaded with sordid stuff e.g., violence, language restraint gone, 11 to 13 "judge' shows every day 9. Please, less hours of 'paid programming' what a waste of time. (Sive us back channel 28 - what used to be A&E. More quality, less quantity. 10, (;~uality is the answer not quantity, 11. The quality of the basic channels has deteriorated over the past few years. M Junk" stations like KONG, QVC, Ed. and govt. channel, Ch. 3 (TV guide used to be on Ch 3). We have lost A&E, USA and 2 Canadian Stations. 12. I cancelled my subscription to Northland Cable last year because I was very dissatisfied with the programming offered and what I perceived to be higher charges for fewer available programming, i.e., the programs offered initially were moved to a higher tier 13. Poor value for the customer. Few channels for too much money. 14. I would have subscribed to the digital package, but the additional channels offered were of little or no interest to me. I feel the line-up of channels that Northland offers is very limited, 15. The number of channels is dropping and rates are going up -- less value even if rates didn't change. Fortunately, channel 10 (Canada) is available with rabbit ears. 16. The TV we receive is a disgrace - We were better off with rabbit ears and we could get, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12 - and the programs were good, not trash. The fee I pay is about $1 per day, and we get $100 worth of advertising and programs. 17. There should always be a good program selection for a reasonable cost. Please! 18. I am disgusted with diminished service at higher cost. 19. Out of the six different cable systems I've subsedhed to in the previous places Pre lived, Northland provides the worst channel selection for the highest per-channel pdce. Northland does not provide many of the channels I would like to receive. 20. Cable Company needs to allow subscriber to select the channels they want to receive and then pay on the basis of the number of channels selected. Right now we must accept package as is or else! 2 t. Our current cable subscriber continues to increase prices and decrease the amount of cable channels you receive for the higher price. Most channels we pay for are either infomercial, one of several news channels, or a similar duplicate of another channel Metropolitan Communications Consultants 8/31/01 Appendix 1:.14 - CATV Subscriber Comments (as submitted) Page 23 Content 1. Please! Please! Give us back the Canadian Station%. We need more CULTURE. 2. (;et back the Canadian channels 3. Bdng back good Canadian channels (6, 8, 10) 4. Ny biggest problem is the taking away of Canadian stations, such as Channel 6, and also Channel 10. I enjoy figure skating amJ this weeks weflds are ail messed up because we don't get channel 6 5.We were quite disappointed when the Canadian channel 6 was taken off, and Kong ~ from Seattle put in its place" 6.I am fudous with the loss of Canadian Channels. 7.I want Canadian Channel 6. 8.Ch 6 Canada 9.Bring back Canadian channels 6 & 8 10.Bdng back CHECK 6 (Victoria Channel) 11.Vidofia has local interest greater than Seattle. Example - News and weather doser to Port Angeles. 12. We watched Canadian channels 6 and 8. Very dissatisfied with replacement channels, our viewing time has dropped appredably. We aise regularly watched Channel 3 ne~s. 13.Please return Canadian Channels 6 and/or8 14. At times there be littleworth but I doubt if that is the fault of the cable However, I want channel 6 seems to on watching, returned to the lineup. 15. They took off Canadian channels 6 & 8 - which had all the wonderful champion figure skating and no American channel has this coverage - why won't they get it back? Also their listing of programs in the paper is terrible. 16. I would like to see CHEK Channel 6 Victoria on the cable as it is aJmost a local station. It would be a good attraction for locals and toudsts alike. 17.We have lost good stations, i.e. Disney, Ch 6 CHEK, Ch 10, Family. 18.Channels we would like to see added: C-SPAN 2, 1'41%/, Comedy Central, and Canadian broadcasting (channels 6, 8, 10). 19.10 additional tv channels. Would really like some of the 10 to be Canadian 6 & 10. 20. Late nkjht HBO shows are vulgar and should be replaced by sports or movies (not X-rated). Sitcoms are silly and of no entertainment value to this family. Channels 6 & 8 should be added to the basic cable. 21. I can see no reason why Ihe cable company took away channels 5, 6-1 O, 15, t 6, 17, & 18. 6 & 10 have been replaced with more unneeded sports programs and oki reruns. It must be cheaper for them to drop the four. Why were our rates raised then? 22.Taidng the news off the air. I watched fi every day. Repladng channds 6, 10 & Family with junk. 23.I want channels: Lifetime, A&E, return of Canadian channel 10 24. There are too many news and gov channels. They took off the Canadian channels and never replaced them with anything decent. Every time they change, it's never for the better. How about Animal Planet and THC? For what we pay, we don't get the variety 25. They keep "improving" things by removing channels we e~fjoy and putting garbage like KTZZ in their place - Over the past few years they have removed A&E, Family, Headline News, Lifetime, Nickelodeon, TNN, USA and the Canadian Channels 6, 8, & 10. 26.We opposed the removal of the Canadian channels. We would like the return of the Canadian channels which have been removed. I would aise like to have the food channel and the weather channel. If the prices get raised again, we will have to go to a dish 27. I would be very happy if the Weather Channel and CSPAN2 were on Northland Cable. Also, I'd like the Canadian stations back. Thank you. 28. I do not have cable at this time and stopped in October. I believe they are to high price when you put it against the dish. They seem to have a lot of sports and got dd of the Canada station Metropolitan Communications Consultants g/31/O1 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 24 Local News 1. I would like the local news and the Canadian stations to be hack on. I do not like (:Span on ch 3 because I cannot get the weather info in the evenings. 2. The local newS program was very interesting and important to us on the peninsula - we have no coverage from anywhere else and Dennis and his crew did a good job keeping us current. 3. 6ndg back local News! 4. I was yep] disappointed when the incaJ news ~ discontinued. The major reason I s~bscribed to cabJe was to have access to Northland Cable News. If was almost immediately discontinued. I do not think it should cc~t more for the local news. 5. Bring back the Northland Cable News program. 6. Without the local news and access to City Council meetings, I might as well join the Dish netwonk. If the NC response to the survey doesn't indicate a timetable for those ~, that is exactly what I will do. 7. I miss the local nev~ program we did have with channel 3 - A & E and TCPI as part of the basic group. 8. Isn't it part of the responsibility of the cable company under the terms of its franchise to provido local government access programming? If not, it should be! 9. Woaid like Channel 3 news back!! Why isn't Odyssey (10) listed above where it would be easy to find? Our channels would be easier to find if they were listed in order by number, 10. I weuld like ch 3 returned as it was Dennis did a great job. He brought the local adivities to our home via cable. As a "frail" lady over 801 cannot get out and about. 11. If you are going to provide local ~ it needs to have more publicity so that we are aware of the time. We didn't watch it when it was on previously because we didn't' think of it. 12. Change channel 3 back to the other music they had before (I don't watch it at all now) 13. Bring Dennis Brag back for local ne~s. 14. You cancelled Canadian TV, scrambled all the channels, dumped Dennis B~ag, and upped the rates. I switched to Satellite when you dumped Dennis - there was no need to continue the f~ustration at a higher price, 15. Lack of a local ne~s program is greatly distressing, and the rationale given by management at the time was poor: "it didn't make money". In fact, it is one of the only reasnos we have cable, and if UPN is ever available on satellite, we would probably drop cable 16. I am very unhappy that Northland Cable keeps changing what is available, without improving anything. I am very upset that the Ch 3 ne, rs was jost done away with - it was a program that I watched on a very regular basis. 1. On the wast end we would like more chan~ls to include the local (Seabawks, Mariners, etc) sports games. 2. ]-he recent northland decision to shortchange us in respect to the number of mariner baseball games that we will be able to see was the final straw, without asking for comment, northland (aka hootervilie cable) has decided for me 3. I am a faithful Hadners fan and I am very dissatisfied with sports Ch-FSN for not televising the 104 Narinars games as they were scheduled to. I can't understand why certain areas can't televise the Mariners games 4. Included an article whh sun, ey noting that Northland Cable does not provide the Nariners games 5. Have cancelled cable due to limited sports channels, mainly IX. 6. Currently, sports is consuming good channels where I have favorite programming which is bumped for basketball. Please put sports on a channel that will not disrupt vie~ng by the many peeple who do not like sports on 1~/. 7. Our only interest in sports is hockey, other than that my wife doesn't watch television. I may watch an old movie now and then or something on A&E, Disc Hist. or TLC once in awhile. The rest of the programming has nothing that is of interest 8. No children & don't follow sports, to many sports and children's shows. 9. We appreciate your caring service. I would love to see ESPN das$ic sports channel and the Nadison Square Garden channel, tenois channel added. Metropolitan Communications Consultants 8/31/01 I Appendix F.14 - CATV Subscriber Comments (as submitted) Page 25 I C-SPAN 1. The only additional channel we would like to have is C-SPAN II. It is book oriented, and a community with such a great library should have a complimentary book channel. Reading is one of the main forms of recreation on the Peninsula. I 2. Until a few months ago, Northland provided c span, which covers all us house of representatives sessions and many other matters of public interest in its lowest cost service, std. basic. Then, it moved cspan to 44, expanded basic., contrary to the public. 3. Make northland provide espan in the cheapest tier. Hake northland provide cspan-2. I 4. I am very disappointed in action by Northland Cable ~ in taking CSP,'~,N off of basic rate of $29.95 and extra $2 per month and forcing as subscriber to pay an additional $10 per month to get CSPAN in daylight hours. 5. Why is CSPAN on channel 3 when it is already on channel 44? I 6. Disappointed to have lost A&E and CSPAN! Music 1. As you can see our family is incredibly dissatisfied with the curreflt service. The fact that there is no other music channels beskles 2 cnontry western stations is completely ndiculous this is the 21st century I 2. Would like to see VH1 & MW back, not all like country music channel! 3. The most annoying thing about the cable to me is the lack of music channels like M1¥ or VH1. I would he willing to pay perhaps five extra I dollars per month for these channels 4. Would like MI¥ or VH1 instead of Country Music. 5. About Music channels: ~/hat they call music on ~ is not what I call music. I 6. Music on ch 3 is terrible. Don't like chamber music or rock or jazz. Miss FMC channel. 7. Our kids were unhappy about zero music channels - Country Western does not count! We had Disney as a Premium channel and then they dropped Disnoy as an option. i 8. Northland's selection of stations is terrible. The country music 1~/channels are wasted channels. The Weather Chanoel...one of the most popular in the country and a subject very important to the Peninsula needs to he a part of our Basic cable. 9. I had ultra basic sewice, and one of my most enjoyed channels TNN Nashville Network was removed from that tier. I complained, but to no avail." I Customer Input 1. Why do we have absolutely no voice into selection of cable station content~' i 2. My biggest complaint ~th Northland is that they make changes to the programming lineup without any customer input to the process. You l~ke what they have to offer, or you do without. 3. The basic cable service does not provide the ~ewer ~ith any say in the selection of programming. There should be options ',~thin the parameter for the basic service. There are channels that provide nothing dght now - channels 3, 8, 17, 18, & 21. I 4. We have never had a service problem so I can't judge on My them this attribute. frustration is that the coesumer can't buy j~t the channels that they would like; i.e., you have to buy a prescribed package of channels. We buy the minimum package 5. We would like to be able to pick our own ~V channels to watch. Not have someone telling us what ~e are going to see, and what price I think we should he charged. they 6. I have had no trouble with the cable company. There has been times they have taken away channels and substituted others or have not substituted any in their place. Which I do not think they should have the dght to exchange channels ~ffhout permission. I 7. I have not been happy with all the changes and I'd like to have had some say in the changes. I ! I I I Metropolitan Communications Consultants 8/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 26 Channel Substitution and Elimination t. I don't like Northland cables pracfice of taking popular programming and either eliminating it (without any rednc[ion of rates) or moving the ~pular progr~ming into a premium package (without any reduaion of the rates) 2. I did not like the deletion of channels that I like (i.e. Family channel) and the addition of o~s I don't care that much for, and t~n raise the rates at the same time. "to ~e us be~er~ 3. Provide channels people watch on the expanded basic i.e. histo~, nickelodeon, life time, usa and all t~ others they have taken away in the last few years. Instead of taking a~ay and charging more maybe t~y should t~ to offer more for a higher prke. 4. I hate that ~e~ time ~ get a good program like di~ove~ or Disn~ th~ p~t it in a higher catego~ and charge more. I would like E~N which is free to you. It is from Birmingham Al. and is Mother An~lica. We have ~gged for it many years 5. Channels removed or rais~ to another I~el are wrong 6. My greatest obj~ion ~s ~e way No~hland deletes stations and r~laces them with infedor ones. Th~ have taken away U~, the Nash~lle Ne~o~, L~etime, and probably others. Then in return, ~ have KON6 (well isn't that a bunch of junk), Od~sey, KT 7. ~en you have taken off channels (ones ~ ~ike) you subst~ute ones that are 'no good" 8. ~uit dropping channels that are go~ forbad on~,e.g, dropping the fox family ch~nel for the~ysseychanneI. MdVH-1 sous ~ple that do not like count~ music ~ill have something to watch in that area. Add something that people might like to watch 9. We get the basic channels. No~hland continually discontinues the go~ chan~ls and substitutes o~s of no inter~t to us. 10. It makes me mad the ~ay the company keeps changing all the programs. ~ soo~ as you ~t u~d to a new program you drop it a~ then you have to pay more for your ~ice. 11. No,bland Cable ~ has continued to change the cable line up. Removing programming that custome~ like from the B~ic Ii,up so that we have to pay more to obtain the programming we like or have become accustomed to. 12. Nany of the channels for ~ich ~ join~ cable initially have ~en taken away, N~ & the Disney chan~l specifically. & yet the month~ se~ice h~ climbed steadily over the ye~s ~th less offerings. Not many ~ple want the histo~ channel or old ~v~. 13. ~uit ta~ng away ch~nels and then charging more. L~t year the ~ari~r games were on channel 31, ~y aren't th~ this year? 14. Unh~py about losing channels 6, 8, 10, 17, 18. Take channels away from us a~ rose the prices. Do not like ~s being the sa~ as channel 44. Do ~t like that t~y took t~ ~e~t~r repo~ away from ~3 at 8:00 PM and I~ve it off all ~t. 15. No~hland's franchise should not be ren~ed without the promise of im~diat~y adding VH1, E, MW, IHC, CNT and channels ~pical of ff~chises se~ng similar cities to PA (e~mple: Cox Communications of Humboldt ~un~, ~if.) -- at no addition 16. ~at B~S me most ~ a[ is ~i~ cha~s (Family, ~, MW) with no com~saf~n ~ r~ ~ rat~[ Ri~t n~ I'm ~ the verge of dropping cable alt~ether like dropping Family channel was the straw that broke the ca~l's back~ 17. Veff strongly dissatisfi~ - ~en we got cable ~ had channel 6 & 1, the~ were taken away. Rates did not Io~r, in fad they ~re r~ ~ce ~thoot not,e, (~ ~ c~ronted N~hland ab~t hlk~ th~ s~ ~ ~as 18. No~hland ~ble continues to drop channels yet raises pric~. ~ 9. We're general~ not pleased by the continuing decrease in channels availabili~ and the continuall~ increasing cost for what we r~eive. ~e're con,tiering a sate)~ite dish, but surrounding trees may prevent making the ~ch. ZO. I'm not interested in more channels as much as I am ~th an improv~ ~ledion of ch~nels. No~hland has continu~ to withdraw quali~ television (Disney, MW, ~nadian statics) in exchange for weak and probably chea~r pr~ramming. Metropolitaa Communi0ations ConsultanB g/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 27 Subscriber Preferences 1. Northland Cable does not offer the channel selection that other cable companies give their subscribers in similar sized cities. Years ago, NC took away NTV. I do not watch M~/, nor do I want MTV. But the fact is that NC took it away 2. Channel 3 and Channel 8 provide no real services. Do we really need 5? 3. Dump PA channel. 4. Dump Olympus, which seems to be nothing than tired reruns of soap operas. Its schedules and programs are a mystery, including the newspaper tv guide. 5. Not watching Country Ch 36 6. Not watching Fox News Ch 23. Fhese could be eliminated. 7. Would like the weather channel added. 8. The weather channel would be nice. 9. It would be nice if repeated channels (in the digital channel range) were replaced with eew programming (like tbe Weather Channel, Animal Planet, and the Comedy channel). 10. Would like to see MSNBC back, don't like Fox news channel 11. Headline news changed to ch 96, poor viewing at tlmes. 12. I think A&E and Science channels should not have been removed from basic tier. Billing keeps increasing with oo added service. 13. It's not that I don't like what our local cable television has to offer. But, most of the middle section of the cable, I don't use, because it has to do with sports or news, but I have to buy it to get the next levet up so that I can get the channels I desire. 14. Channel selection does not seem to adequately serve the demographics of the area. If paying for the digital package, you end up getting repeated channels which are already available on expanded basic package. 15. Way too much advertisement on Cable TV, 16. Why is there nothing on Channels 144187" 17. Currently, North[and doesn't offer some of the channels we wish to receive (VH1 or NTV), and if I went with their digital service and get the one channel I want on that (Sci-Fi), it is not worth an additional $8.00/mneth with a bunch of game show channels 18. I would really like to get The Animal Channel. 19. I would like to be able to receive adult programming. With the new digital cable parents can set system to require a password in order to channels so that should not be a problem. access part 20. Include PaxW and HSN in the lineup. 21. Would like to get additional stations like History Channel Compared to other cable providers in other parts of the country, I think we already pay too much for the poor selection we have. Others pay comparable pdces, but get two or three times the amount 22. Bring back Fox Family, Chek and Global. 23. Bring back the Family Channel - the basic had the Diseey channel, then the Family Channel aM both are now gone 24. Would like Game show ~3/station - Res channel, Odyssey, Animal Planet 25. I have been VERY displeased that Disney Channel is not available and VERY displeased that channels are changed around so much. Our rates go up anyway. I don't understand the problem with televising all Narioor games 26. Too bad they don't provide Disney. 27. I like arts and crafts but I don't like the crazy little nun and her art tours. She is kind of demented. 28. Add channels in particular a Spanish Language channel (SPAN) to Port Angeles line-up. (Expanded basic). Enough Latinos in area to justify it and many non-Latinos who are interested. How about something for the minorities! Forks has it. 29. I would love to see "TBN" offered on our local cable system. This very fine Christian channel would fulfill the spiritual needs of local residents on the Olympia Peninsula; for many shut-ins in our community, that is t~e only "church" exgedeece they have 30, I would like to see the channels we used to get but have now been moved from basic 31. Not enough variety in selection. 32. Since I first subscribed to Northland Cable 12 years ago (basic), channels have been eliminated 33. I'm alone and enjoy the programming I have now. Metropolitan Communications Consultants 8/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 28 I OTHER TOPICS Internet 1. High speed intemet access is a major need in this community. I feel we should also have access to the Weather Channel. 2. I do not currently have cable tv. I would be most interested in cable intemet access. 3. I've been waiting eagerly for cable intemet access... I hope that will happen soon! 4. High speed intemet access is a must for PAl 5. We need high-speed internet connedions NOW. 6. Please high speed internet access and community news and cultural, sporting events! 7. We would be interested in high-speed Internet access. 8. If one didn't have to pay $40 a month for 43 channels just to get 4, 5, 7, 9, 11 & 13 in this area (without which one can only get 2 1/2 Canadian channels), paying a little more every month for internet access and local emergency alert messages would be OK 9. Not all of us want or need the latest in sound and picture developments or Intemet hookups, and should not have to help subsidize the bill for those who do. Competition 1. My only comment is that it would seem a good idea to offer some competition to Northland Cable. Being the only option in town besides satellite seems to give them an unfair advantage. 2. I am outraged that there is no competition here because other areas where there is a choice, offers better service at lower cost. 3. We need other choices of providers - Northland has too much control. AT&T, qwest? 4. I feel that the city of port Angeles needs more than one cable company Competition/Programming 1. We have cancelled our cable subscription as it took away educational programming. We enjoyed watching in the basic tier and charged more money for less services. Another cable company added to the area would provide needed competition 2. I would like to have a choice of cable providers. Service and quality improves with competition. 3. We need another cable company for competition so they won't run around and remove good stations and add stations that they think we want, but don't. It just gives them the right to raise rates on stations that we don't want. 4. I feel that the current cable company is nothing but a monopoly. I was upset when they did away with MW, I didn't watch it but I think others should have the right. They now have taken more sport channels away and put in more infomercial channels. 5. Bring back the local news and Canadian stations. Northland needs some competition. The rates are too high for what is given to the customer. Competition/Rates 1. You charge too much for cable tv. We ~eed more cable competition. Another cable company. 2. I am ve~ unhappy with the monopoly of Northland Cable. We do not have choices and not all of us enjoy country music. We are currently considering changing to satellite only because Northland is expensive and do not offer good choices. 3. ~ don't like the way the tiers change and I think the cost for what we receive is too high. it's time for Northland to have some competition-- so we can choose which cable company we'd like to purchase our cable from. 4. Already paying much more per channel than many other localities. It was a mistake to give Northland a long-term monopoly on our cable senrice and I sincerely hope that you won't repeat your error. The company has a bad habit of moving desired channels 5. I would like to see more competition so the rates would be reasonable. I think it is too expensive for what we get and I am thinking of going back to regular cable soon. 6. Northland Cable needs a competitor to help keep the pdces down. The prices go up and channels are deleted so end up paying more for less. On an overall rating, we are not happy with Northland Cable. 7. We didn't have a choice to have other cable service from different companies. It is a monopoly pdced way out of control, too high. 8. Northland Cable is the per[ect e×ample of monopolistic greed. Tbey have increased thek rates more thanf O%/yr since they arrived. TbeY have increased rates even when the increase does not apply to cable TV. They sign up for less expensive channels. 9. Northland Cable TV is a monopoly and the absence of competition is reflected in the ever-increasing monthly rates. 10. Would be interesting to see what the fees from Northland cable would have been or would be at present it they had competition. 11. The city should not renew Northland franchise but, instead, open the franchise to competitive bidding and award it to a service provider that can offer far more options at a more reasonable cost. The city also should consider operating the cable system itself. 12. In the last eight years, my cable bill has increased $9.00 a month and the number of channels has decreased! (5 or 6 channels, including some Canadian channels) YOU MUST BREAK THIS MONOPOLY! Metropolitan Communications Consultants 8/31/01 I I Appendix F.14 - CATV Subscriber Comments (as submitted) Page 29 I Satellite Alternative 1. Sadly, I will be switching to a satellite 13/format this fall. 2, We are now committed Dish users. i 3. We don't have cable -- we have satellite service 4. I have currently switched to satellite because of better picture lower rates and more channel and their customer service is great. 5. Think my case different. Got disgusted with cable-takleg channels away and adding more news channels. (We can only watch one of those at a time) & increasing the pdces. I finally went to satellite I I found Northland to be difficult to deal with and very unwilling to provide me with service. One person was downright rude. I have since 6. purchased a dish and have better programming, better service and a lower pdce. 7. I dumped Northland 3 years ago and do not regret it at all. Their service was so bad, I jumped at a small satellite dish! Isystem over years, cannot compare with the quality and program pficiog I receive. I 8, have had a satellite for three Cable television receive over 200 channels for the price of 70 or so channels offered by Platinum digital. The quality is so much better 9. I was very dissatisfied with the quality of reception and rising rates for the number of channels received, so I purchased and subscribe to I digital satellite service which has 100% better Quality and no. of channels for the price. 10, We dropped Cable more than a year ago. We find the picture, sound, and service to be far superior on 'Dish". 11. We switched to DirecTV about 2 years ago. Service has been excellent, and interruptions almost non-existent. Price was very I competitive with the local cable. The final straw for dropplng the local cable was when they dropped all the Canadian channels 12. I now receive the dish network and plan to add chSO0 to pickup local programming out of Seattle/Tacoma, When this happens I will drop the cable. I can get more channels for less money from the dish network. Also experience less day time outages on the dish i 13. We are very dissatisfied with the local cable company (Northland). The quality of the picture has decreased and the quality of the channels we get has also decreased. We have signed up for a dish 14. I am a 26 year old married female with two young children. Ny husband and [ have opted not to have cable and buy adish because we feel our generation is largely ignored. We are dissatisfied that the Disney channel is now a premium channel I Ny household is terdbly dissatisfied with the current programs. We will bo installing a satellite dish within the next few months because we 1 5. will have access to many more channels for very little extra cost, Too much "Faith" based and sports TV currently. 16. Because of the high pdce of cable I am considering Dish TV, as you can get more channels I 17. We switched to satellite because of the poor selection of programming provided by Northland, along with its fees. outrageous 18. I finally dumped Northland cable and bought a dish. I now get a better picture, better programming and I pay LESS!! 19. Today I am having cable replaced by dish. I was very unhappy with cable (Northland). Hany of the better channels in the now $29.95 I group have been put into more costly groups and replaced by junk channels. We lost all the Victoria channels to more junk 2.0. I have a satellite dish but also subscribe to Northlaed Basic in the hope they might keep their word to put back the Canadian channels they stupidly removed. It doesn't look like they will so I will be forced to drop them and get a roof antenna I 21. I would like to be able to subscribe only to selected local channels only. it would be nice to see the Canadian channels in addition to KONG ~¥ be in the line-up. I have a satellite dish now but rely on the cable television for all local channels. 2.2. I feel the Dish systems offer more viewing and listening options for the same amount or !ess money. What's the incentive for continuing I with cable service? 23. We have subsedbed to Dishnet because of dissatisfaction with Northland's excessive pricing and limited channel selection. I would shift back to cable service if pricing were brought into line 24. I had northland and got fide of them because I get more from rca dish for just a little bit more money think the cable company is a big I joke will never back to cable after dish go having a 25. We discontinued our cable service after many years of paying through the nose! We have a satellite dish now and are much happier with the cost, selection and availability. We would do without TV before signing up for cable again! I 26. Ny answers aren't really going to make sense unless you know that we dropped Northland Cable because the service was so and so limited and so poor. We now have a Dish and are very satisfied. 27. I changed from cable Iv to the dish network because the cost per month was more than what I can get on the dish network with a Jot I more channels that I enjoy watching, including local networks. 28, Quit Northland and switched to DirecTV in September 2000 because of NL's continuous increase in rates and decline in what they offered for the increased costs. In 1996 my service was $32.+ per month - by 9-2000 this had increased to almost $40.00 Izg. You cannot expect to keep in business with the satellite dishes if you cannot compete with their prices and lineup. I can get 150 channels for the same price that you charge for 56 channels 30. No longer have cable have dish get 140 channels for the price listed with Northland for SO channels much better picture also. I i Metropolitan Communications Consultants 8/31/01 Appendix F.14 - CATV Subscriber Comments (as submitted) Page 30 Satellite Alternative 31. I am currently disgusted with Northland Cable and am waiting for my satellite dish to be installed at this time due to the rising almost monthly cost, constant deletion of an enjoyed chaneel, and juggling the channel line up all around too frequently. 32. Bought a dish due to the cost and the constant channel line-up changes. We feel we weren't getting much for our money. It was becoming a monopoly as far as we are concerned. We get so much more from our dish! I would never have cable in this town again 33.We no longer subscribe to cable TV. We subscribe to Dish Network's basic package plus two stations that we pay extra for. We do not receive any of the network TV programs. The network nev~s channels are biased and poor sources for accurate information 34.Ten of my neighbors have dish TV and I will soon opt for a satellite dish. Direct TV provides 45 channels for $21.99 per month" 35.As soon as cable rates pass satellite rates I will consider switching. Some of the expanded basic channels I would not sign up for. I had no choice in order to get the channels I want I have to sign up for the whole thing. 36.I know more and more people have gone to the dish since local cable have increased their prices and decreased the number of channels. I have inquired about it. They could not get to me in that month, but I am still thinking very strongly about changing. 37.I turned off the cable company this year after they dropped the Canadian channels, raised rates and wasn't happy with their explanation. I bought a satellite dish. There is just no comparison!! Northland's rates are ridiculous. 38.Recantly cancelled cable after going to dish TV. We have been very displeased with the changes forced on us by NC along with pdce increases for less. We enjoyed the Canadian stations and they were taken away without any options. Also poor reception 39.Current rates are in excess of the value received. For less per month I receive considerably more from the Dish. 40.The fees charged for the services of our local cable are outrageous. I can get more channels on my dish for very much Jess. When I first moved to Port Angeles in the eady ? 980's, the local cable provider was reasonably priced. 41.With dish TV becoming affordable, cable needs to be more attractive to keep its subscribers. 42. The cost of cable has risen to where it's equal with the cost of satellite TV with no improvements to justify it. Our family will be switching to satellite soon. 43.Current cable rate I pay is too much for what I get. I want more movies and music channels, but I don't want to pay too much more. I've been thinking on getting a dish instead. 44.I would not pay this cable co. another penny. Over the years they kept charging more and more, then giving [ess and less. I have disconnected my cable and now have satellite. 45.If cable TV rates go any higher, we will definitely go to Dish. 46.Northland Cable is overpriced and under channeled. I'm now using Dish 500. I'm very satisfied with it. 2 1/2 times more channels than cable for the same price if not cheaper. Ny opinion is Northland cable won't (shouldn't) be around much longer. 47.Northland Cable is constantly increasing their charges while at the same time removing channels or placing them in a higher price range. I am seriously contemplating purchasing a satellite dish simply because of dissatisfaction with Northland. 48.I have changed to dish network because I believe they have a better deal. I always felt like the cable company was dpping me off. Miscellaneous 1. A partnership between the City and A private company (Northland) would be a bad idea. I can see nothing but a conflict of interest. 2. Believe city should regulate/monitor carefully activities/policies of private company in terms of cost/benefits 3. THANK YOU for providing this survey and for all of your diligent efforts on behalf of us in the PA community!! 4. Keep up the fantastic work you are doing. 5.It is in our best interest to express our thanks for letting us participete in this cable survey questiannaire. To the best of our ability we have truly answered as correctly as we believe how. 6. believe that Emergency as Tsunami, earthquake, flood or natural disaster should be aired as public service without cost to subscribers or the city. Not to include messages. Metropolitan Communications Consultants 8/31/01 I APPENDIX G.15 - TELECOM PROVIDERS AND USERS CONTACTED Page 31 I Company Name Title Telephone e-mail Service Providers m Northland Cable Television Pete Gfigodeff Manager 360-452-8466 pete~nor~hlandtv,com Northland Communlcatio~s Corp. Michael W. Roberge Western DMsion Ops Mgr 206-62t -1351 mrobe rge@norihlandco.com Richard J, (Jack) Dyste VP Technical Services 206-621-1351 jack~northlandco.com i Qeest Communications Jane Rishita Regional Manager 206-345-2316 jnish~qwest.com Fairpoint Communications Oaelel P. Fine Regional VP DJ Sales 704-414-2527 dfine@fairpo~nt.com Lynn Scherencel 360-417-9757 Ischerencel@fairpoint.com IOBO UUey judey(~fairpoint.com m centuryTel Tim Gfigor Wa. General Manager 253-8§1-1345 JiM Comsa Account Manager jill.cum s~centu ~el.com Ross Shenner Area Manager I Tony Nicholson Area Manager tony.nichols~centu ryt el.cum Avista Communications Greg Greene President 509-444-4900 Karen Moses General Manager, Yakima 509-853~4010 kmoses@avlstacom.net I New Edge Networks Sal Cinquegrani Exec. Dir. Community RelaBons 360-693-9009 Nu Wave Communications Reidi Ounfield SVP, Business Development 541-386-5000 I Ten Fonvard Cemmunlcations Sheldon Koehler Owner 360-457-9093 sheldon~tenforward.com Oarren Atkins Manager 360-457-9023 I Otygen Mike Breen Owner 800-962-8714 billiog~olypen.com Jared Emory Broadband Design Engineer 800-962-8714 Terry Kennedy 800-962-8714 ter~olypen.com Olympus.net Ned Shenann ned~olympus.net Dave Meyer davemeye~olympus,net Angeles Communications, Inc. Bob Jensen 360-457-4375 Excel Construction Bill Roberds 360-452-1110 VgiJty billwash(~dypen.com Clallam Co PUD No. 1 Fred Nitchell A~sistant General Manager 360~152-9771 x235 fredm@dallampud.net Northwest Open Access Network Dave Spencer Chief Op~ratlng Officer 208-343-6477 dspence~noanet.net PA Prospectk, e Large Users Ciallam County Daniel Geuln Central Sewices Department 380-417-2000 x2408 dgouir~co.clal{am.wa.u s Purl of Por~ Angeles David H. Ragiwara Boputy Executive Director 360-417~3422 daveh@portolpa.corn 8i[I James bjame~potoya.corn Port Angeles School District 121 Steve Baxter 5upewisor of 15 & Technology 360-457-8575 x33 st eve_ba,xte e,~oasd.wednet.ed u Peninsula College Ken ~acobson Director ol IS 360-452-9277 kjacobso@ctc.edu Emma Janssen em m aj@pcadmin.ctc.edu Olympic Medical Center Evan Bo~J Sr Network/~Jministrator 360-417-7192 eb~olym picmedlcahor g Craig Haoght [6¢ Jarobson Gary Smith g rsmit ~olympic medical.org Virginia Mason Port Angeles Ida Brooks 360 457-2158 First Federal & Loan Paula Johnson 360-457-0461 Savings paulaC~ffpa.com Daishowa Amedca Kathy Prince IS Supervisor 360-457-4474 kathy.prince~daishowaamedca.com i Metropolitan Communications Consultants 8/31/01 APPENDIX G.16 - TELECOMMUNICATIONS NEEDS AND SOLUTIONS WORKSHOP Page 32 · I 1 DEN-REE PRODUCTIONS I 670 Lotzgesell Road Sequim, WA 9838~ Ph: (360)- 683-~'677 TELECOMMUNICATIONS NEEDS AND SOLUTIONS WORKSHOP - EXECUTIVE SUMMARY I Overall, 19 participants took part in the Telecommunications Workshop on March 30, 2001, generating between 250 and 300 response cards on 10 key questions that were developed for the focus · group component of the business plan. (These are detailed in the Detailed Report). The primary findings are as follows: 1. What telecommunications services needs does your organization have in PA today? Are there any I un-served broadband needs? Are your needs changing? If so, how? Participants first considered their present, unserved telecommunications needs with the demand for high-speed connectivity clearly ranking as the most important demand that's not being met with the · present infrastructure. Participants were then asked to list the areas where they had specific telecommunications needs in their organizations today, or in the community as whole. As with many of the questions throughout the workshop, the panel clearly said they not only want "fast" telecommunications services, but also want them at "affordable" prices. Finally, the groups were asked how their telecommunication needs could change in the future. The prospect for the convergence of combined telecommunications services (TV, phone, Internet) emerged on top. Business people who · participated further expected the need to compete, or offer new services via the Internet. 2. How would your organization use a broadband wide area network if it were available and affordable? I Workshop participants were asked to consider how they might use the telecommunications backbone if it were available now, at an affordable price. The morrdng panel's involvement in local govemment clearly showed with the top selection favoring remote connectivity and service to offices and departments scattered at various locations around the community. Other top responses included the prospect for video conferencing and remote training and education for people who cannot travel to attend school. I 3. Is development of a broadband network throughout PA important? Should investment be limited to those areas that make economic sense or should the City pursue citywide development? How could an investment in a citywide project be justified? · Participants in the morning workshop clearly believed that the network should be developed beyond a "limited model", in order to include more population in potential services and improve economic impacts throughout the community, although cost was mentioned as a factor. The afternoon · work group suggested a "limited" deployment might be a possible path for initial network development, using partners for expansion. At the same time, the participants felt a large deployment is necessary if the network is going to have the greatest benefit, in the shortest period of time. In fact, they saw partnerships · as key to overcoming service limits. Participants felt economic development and education opportunities were a primary means of justifying the network in a community network. I Metropolitan Communications Consultants 8/31/01 I I Appendix G.16 - Telecommunications Needs and Solutions Workshop - Executive Summary Page 33 I 5. are advantages/disadvantages a City partnership a telecommunications What the of in broadband backbone to enable broadband services for business? Not surprisingly, the issue of "cost" topped the list of "advantages". When it came to I disadvantages, the functions and use of a joint network, such as security of documents and information management were mentioned. The afternoon group saw specific advantages to such a partnership, not the least of which was the rate of broadband deployment, and the use of existing technology, although Ithe panel expressed concerns about working out the details of such a partnership. 6. Is "open access" and competition important for the advancement of broadband i telecommunications services? The morning group simply said "yes", open access was important. The afternoon group felt open access could benefit the consumer, with more options, better service and lower prices. I 7. What criteria should the City use to evaluate proposals to develop a broadband telecommunications infrastructure? Quality of Service, cost and Return on Investment emerged as the top considerations, with other I suggestions such as "access to many or all", and consideration of existing resources and how to integrate those into the network. Other factors included reliability, technology and experience (of potential partners). I 8. What needs do public, educational and governmental organizations have that may go un-served if a broadband infrastructure is not developed? The morning group clearly showed a determination that the network should be constructed, I again with the cost of development a theme in their The afternoon panel, with a greater responses. number of business representatives, expressed concerns that the lack of a network would slow economic growth and hurt the community's ability to compete in attracting new business. I 9. What obstacles would need to be overcome with "last mile" infrastructure? In this question, participants were allowed to freely touch on a variety of challenges that must be m bridged with the "last mile" deployment of a community network. The cost of that development was the primary concern, but others worried about the time for construction, administration, how to avoid construction disruptions to the community and convince people of the importance of building the network. I 10. What types of business/industry could we attract to PA if broadband services were available? These responses touched on a variety of business sectors that need broadband in order to I compete in today's markets including call centers, engineering/architectural firms, high-tech research and development and any "businesses that use Internet distributed & developed products & services." Some suggested the network could attract "any business who brings employees who have high Iexpectations in the area of high speed connection & services". 11. Should the City be involved in providing telecommunications services, or only be the service provider of last resort? i The groups were asked to separate answers into subheadings "advantages" and their of "disadvantages" of the City of Port Angeles actually providing the telecommunications service. Generally, most in the morning workshop saw the disadvantages of this scenario, saying, "Government Ishould not be competing as a private enterprise". But the afternoon panel felt that the city could/should actually take steps to insure the availability of service if necessary, although they expressed concerns about the city's expertise and expense of such a deployment. ! I I Metropolitan Communications Consultants 8/31/01 I APPENDIX G.17 - TELECOMMUNICATIONS SAMPLE SURVEY FORMS Page 34 I City of Port Telecommunications Survey Angeles ~"'~ .... I~J I~'3 ~ I~-~ J ITM I [~ ~f~ I~ ~ I~- ~ I I I I Appendix G.17 -Telecommunications Sample Survey Forms Page 35 What telecommunications services does your organization receive, and what is the estimated monthly cost? Metropolitan Communications Consultants 8/31/01 Appendix G.17 -Telecommunications Sample Survey Forms Page 3 6 I [] ~'~'~"'~ I~~ ~ I ....... ~ I Hay We Have Your Opinion? I I I I I I · ~ i ~ I Metropolitan Communications Consultants g/31/O1 I APPENDIX G.18 - TELECOMMUNICATIONS EXHIBIT 4-6 CHARTS Page 37 CURRENT SERVICES AND FUTURE SUBSCRIBER NEEDS CHARTS (1 of 41 Voice Communications Video Communications Analog voice I~igit al voice Voice/data Oth~- Wireless Communications MetropOlitan Communications Consultants 8/31/01 Appendix G.18 -Telecommunications Exhibit 4-6 Charts Page 38 I CURRENT SERVICES AND FUTURE SUBSCRIBER NEEDS CHARTS (2 OF 4) I o- I Data Communications i 8 ~o LAN/WAN Computer Networks I I Appendix G.18 - Telecommunications Exhibit 4-6 Charts Page 39 CURRENT SERVICES AND FUTURE SUBSCRIBER NEEDS CHARTS (3 OF 4) [] UIP cable I-10th~' [] OpticaJ o 40 0 Premise Premises Premise OSP Voice OSP Data OSP Video Voice Data Video Respondent Owns Cable Plant [] Responses [] Yes 8o 0 Telephone Data Video Current Current Data Current Future Future Data Future Competency Competency Competency TeJephone Funding Video Telephone Funding Video Funding Funding Funding Funding Respondent Has Resources Metropolitan Communications Consultants 8/31/01 Appendix G.18 - Telecommunications Exhibit 4-6 Charts Page 40 I CURRENT SERVICES AND FUTURE SUBSCRIBER NEEDS CHARTS (4 OF 4) I [] Strong agree r'l Agree [] No opinion [] Disagree I , PA needs competition Would change se~'Jce Would change provides~ if i provides's if sane sen'ice, same service, sa'ne cost, love- cost but higher speed Respondent's Opinion I I I Nothing up to Z5% up lo 50% over 50% I Willin§ to Pay to Meet Future Needs I I I I Metropolitan Communications Consultants 8/31/01 I I APPENDIX G.19 - TELECOMMUNICATIONS SURVEY COMMENTS (as submitted) Page 41 I Internet Access 1. We only have dial-up. 2. Using dial up service I 3. Nodom 56K 4. Just know it's DSL 5. Dial up - slow! I 6. BUT Slow where we are NOW at! 7. 24,000bps 8. I live at the edge of the current physical limit for faster connections. I am told I can get IDSL. It seems expensive. I would like the City to I look into what circumstances would allow providers to be able to lower the prices and still make a profit. 9. ['4any of my friends and I would all purchase OSL from Quest immediately, considering it is only $20 per month. I am a student in the computer program here at the college, and I don't know anybody who wouldn't switch to DSL if it were available here. 10. I'll pay $20 for DSL in Port Angeles I 11. Would like capability for combined fax/data DSL line 12. Please get us competitive DSL pdces we can afford. 13. Q~est DSL seems like it will be a good deal I 14. We want DSL to have access a real-time intemet at reasonable costs. 15. I would like DSL here! 16. All my fl-lends want Quest DSL! I 17. Nay be interested in DSL in future, but don't know about these choices 18. I need DSL! 19. I would like some DSL service! I 20. Get me DSL please! 21. If this is asking if I'd like DSL, the answer is Yes...depending on the cost of the service (I am disabled and on a fixed income) 22. If the price comes down little for DSL I 23. Depends on cost ;)4. Would like quicker access. Future Access Lines for Business I 1. We will be needing additional incoming and outgoing lines. ;). should be adequate 3. None expected I 4. Don't foresee expansion. 5. Probably eventually add add'l thinks 6. All Future Data lines to be Fiber I 7. Industry will dictate what I need 8. Additional DS-1 lines as needed Future Phone Features I 1. We use Norstar Electronic Key System. Norstar is loaded with features ;). We have many features on our phones run through Symphony. Voice mail is through Octel. 3. Voice mail when all lines are busy I 4. Not satisfied with qwest 5. Don't foresee expansion. ! ! ! Metropolitan Communications Consultants §/31/01 Appendix G.19 - Telecommunications Survey Comments (as submitted) Page 42 Wireless 1. We have been offering fixed wireless for 4 years now. 2. In answering that we need more telecom providers, it could be that we need more towers instead so our intemet connection is not interrupted so fTequently. 3. Let pdvate industry do it - you don't have to. If you insist on doing something you should investigate wireless instead of laying cable. There is an ongoing test of wireless dght now that you might look at 4. We expedr more cell phones 5. Investigating Future Video 1. Our hopes are to have video teleconference when the technology is available. 2. r',letConlerencing would be something I am interested in, if it is included with my intemet access 3. Have Intra~buildieg video. Would change providers if same services, same cost, higher speed J. E:~isting are OK 2. Unless i'm sacrificing service. 3. Maybe 4. as far as intemet providers go... if cable modems were available at same (or lower) cost as OlyPen I'd definitely change Willing to pay to meet future needs and interests 1. Should pay less then we are paying OlyPen. 2. I could see some increase, but not ;'5%. 3. Given the growth of technology, would expect to pay less in the future for improved services 4. Depending on services offered Miscellaneous 1. It is of concern to me that we stay ahead of the game in regards to the communications available to us as a business. Our ability to function and to survive depends on this. I strongly encourage funding development and education. Thank you for the opportunity to comment. 2. Other than normal phone service, we have no services in these areas. In the near future, we would like to get standard Intemet access, and at some future point we would like to be able to offer ticket sales both online & over the phone 3. Since my business is small enough where I don't need to worry about this new technology, I am blissfully ignorant about much of what this survey covers. Like most business owners in the area, I have no opinion on the subject of high tech phones. 4. We are interested in more bandwidth than our current provider offers for faster data transfer. 5. We have entered a period of Emai[ glut. Just managing loads can be frustrating for a small business. There should he alternatives that make sense operationally and economically. 6. With the dynamic communication technologies changing so rapidly, my answers to this survey could drastically change too. 7. We need reliable faster internet service and web hosting. Decrease the down time of website. 8. We need to catch up with the I-5 Corridor to become competitive!g 9. We would like pdcing at Seattle levels. Metropolitan Communications Consultants §/31/01 APPENDIX H.20 - INFORMAL PROPOSAL FOR THE CABLE FRANCHISE RENEWAL page 43 SECTION 1. CITY'S PRINCIPLES AND INTENT SECTION 2. DEFINITIONS SECTION 3. GRANT AND ACCEPTANCE OF FRANCHISE 3.1 Grant of Cable Franchise 3.2 Acceptance Of Franchise SECTION 4. BASIC FRANCHISE TERMS 4.1 Franchise Not Exclusive 4.2 Term 4.3 Service Availability 4.4 Line Extension Policies 4.5 Rate Regulation 4.6 Provision for Franchise Amendment SECTION 5. GENERAL CABLE SYSTEM REQUIREMENTS 5.1 Principal Features 5.2 Cable System Standards 5.3 Cable Modem Service 5.4 Cable Plant Topography 5.5 Headend 5.6 Upgrade to keep Technology Current 5.7 Technical Upgrade Procedure 5.8 System Reliability and Performance 5.9 System Capacity and Features 5.10 Subscriber Equipment Interface and Control 5.11 Emergency Alert System 5.12 FCC Testing 5.13 As Built Drawings SECTION 6. PROGRAMMING AND SERVICES 6.1 Grantee Compliance 6.2 and Channel Programming Capacity 6.3 Community Programming Needs 6.4 Subscriber Mailback Programming Survey 6.5 Community Needs Ascertainment Process 6.6 Deletions or Reductions of Programming Categories 6.7 Obscenity 6.8 Parental Control Device 6.9 Closed Caption Signals 6.10 Cable Service to Community Facilities 6.11 Subscriber Service Standards SECTION 7. ACCESS CHANNELS AND SUPPORT 7.1 Minimum Channel Capacity 7.2 Access Channel Activation Utilization Criteria 7.3 Additional Access Channels 7.4 Allocation of Access Channels 7.5 Use of Access Channels 7.6 Digitization of Analog Channels 7.7 Technical Quality 7.8 Designated Access Channel Managers 7.9 Video Feeds Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 44 7.10 Rights to Access Channel Programming 7.11 Access Channel Resources 7.12 Grantee Capital Contributions and Other Support for Access Channels 7.13 Agreement as to Access Channel Contribution 7.14 Access Channel Interconnection 7.15 Demographics Research 7.16 Additional Cable Franchises SECTION 8. INSTITUT[ONA£ NE~'VORK 8.1 Provision of Institutional Network 8.2 I-Net Ownership 8.3 City's Exclusive Rights 8.4 Use of Institutional Network 8.5 Institutional Network Plans, Specifications, Cost Proposal and Construction 8.6 Demand Maintenance of the I-Net 8.7 Routine Maintenance of the I-Net 8.8 Payment for Maintenance and Repair of I-Net 8.9 Administration, Maintenance and Management of I-Net Sites and Equipment 8.10 Cost 8.11 Definition of Incremental, Direct, and Indirect Costs 8.12 I-Net Costs not Franchise Fees 8.13 Pricing Guarantee SECTION 9. CONSTRUCTION PROCEDURES 9.1 Cable System Construction Standards 9.2 Construction Work Regulation by City 9.3 Work by Others 9.4 Construction by Abutting Owners 9.5 Relocation or Removal of Facilities. 9.6 Tree Trimming. SECTION 10. COMPENSATION AND FINANCIAL PROVISIONS 10.1 General Compensation 10.2 Calculation and Payment on a Quarterly Basis of Annual Franchise Fee 10.3 Bond and Letter of Credit 10.4 Insurance 10.5 Indemnity 10.6 Audits SECTION 11. REPORTING REQUIREMENTS 11.1 Reports. 11.2 Records 11.3 Filings 11.4 Confidentiality of Information SECTION '12. REGU£ATORY PROVISIONS 12.1 Transfer Of Ownership Or Control 12.2 Forfeiture And Termination 12.3 Violations 12.4 Governing Law 12.5 Force Majeure 12.6 Severability And Preemption Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 45 I SECTION 13. REOPENERS 13.1 Grounds I 13.2 Reopener Procedure 13.3 Criteria Governing Arbitration Decision I SECTION 14. MISCELLANEOUS PROVISIONS 14.1 Notices 14.2 Entire Agreement i 14.3 Previous Rights Abandoned 14.4 Repeal of Prior Ordinances 14.5 Attorney's Fees 14.6 Time is of the Essence I 14.7 Remedies are Cumulative 14.8 Neither Grantee nor City is a Common Carrier 14.9 Equal Protection EXHIBITS I Exhibit A - Acceptance of Franchise Exhibit B -- Grantee Furnished Connections to Community Facilities Exhibit C - Subscriber Service Standards IExhibit D - Subscriber Service Reporting Requirements Exhibit E - Public Utility Tax Ordinance Amendment Exhibit F - Northland Fiber Upgrade Plan and Node Service Areas ! ! ! ! I Metropolitan Communications Consultants 8/3U01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 46 CITY OF PORT ANGELES ORDINANCE NO. An ordinance of the City of Port Angeles granting to Northland Communications Corporation, doing business as Northland Cable Television, a franchise for the purpose of constructing, maintaining, operating and using a cable television system in public streets, alleys, and rights-of-way in the City of Port Angeles to provide cable service, and repealing Ordinance 2470 and Resolution 27-89. WHEREAS, pursuant to RCW 35A.48.040, the City is authorized to grant one or more non- exclusive revocable franchises to construct, maintain and operate a cable television system within the City; and WHEREAS, Northland Communications Corporation, doing business as Northland Cable Television, ("Grantee") has requested a franchise from the City to provide Cable Services (defined below); and WHEREAS, after evaluation of the application received from the Grantee, the City has determined that this franchise reasonably meets the current and future cable related needs and interests of the community; and WHEREAS, in the Acceptance attached hereto as Exhibit A, the Grantee has agreed to be bound by the conditions hereinafter set forth; WHEREAS, in consideration of the terms of this Ordinance and the Acceptance attached hereto as Exhibit A, the City has agreed to grant to the Grantee a franchise as set forth in said Acceptance and in this Ordinance; NOW THEREFORE, the City Council of the City of Port Angeles, does hereby ordain as follows: SECTION 1. CITY'S PRINCIPLES AND INTENT The following provisions are statements of the City's intent in granting this Franchise and shall not supplant or modify any specific provisions of the Franchise. The City's intent in granting this franchise to the Grantee is to accomplish the following: 1.1 Provide for the installation and operation of a Cable System with features reasonably meeting the current and future cable related needs and interests of the community. 1.2 Encourage the widest feasible scope and diversity of programming and other services to all City residents that is consistent with community needs and interests. 1.3 Encourage a broad range of cable services to be offered to City residents on a non- discriminatory basis. 1.4 Encourage prompt implementation of technical advances in cable television technology. 1.5 Provide for ample and fairly allocated access to cable facilities for program producers for government and educational programming. 1.6 Ensure that rates and charges for basic cable programming, equipment, and service are fair, reasonable and consistent with federal standards. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 47 1.7 Require that Grantee provide high quality subscriber service. 1 .lB Ensure that the installation and maintenance of cable facilities comply with all applicable City regulations and do not interfere with the City's legitimate use of its own facilities and property. 1.9 Encourage competition among cable operators and between cable operators and other providers of communications services on a fair and equitable basis. 1.t 0 Protect the City's interests and the health, safety, and welfare of its citizenry. 1.11 Ensure the universal availability of Cable Services within the Franchise Area on a non- discriminatory basis. 1.12 Provide for timely mandatory government access to all Cable Systems in times of civil emergency. SECTION 2. DEFINITIONS W~en not inconsistent with the context, words used Jn the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number. The words "'shall' and "will" are mandatory and "may" is permissive. Words not defined herein shall be given the meaning set forth in the Communications Act of 1934 as amended by the Cable Communications Policy Act of 1984, the Cable Television Consumer Protection and Competition Act of 1992, and the Telecommunications Act of 1996, and if not defined there, the words shall be g/yen their common and ordinary meaning. 2.1 "Access" means the right of certain agencies, institutions, organizations, groups and individuals in the community, including the City and its designees, on a non-discriminatory basis, to use the Cable System for specific public, educational, or governmental non-commercial purposes, including the right to acquire Programming, to create Programming free from outside control including that of Grantee, and to distribute and receive Programming over the Cable System. 2.2 "Access Channel" means a dedicated channel for public or educational or governmental institutional use, be it audio, video or data, as provided/or in Section 611 of the Cable Act. 2.3 "Activated" means equipped with the electronic, optical or other devices and hardware required for transmitting and receiving the communications signals over the network transmission media between locations across the network. 2.4 "Additional Access Channels," means access channels as set forth in Section 7.3. 2.5 "Affiliate" means any enterprise that owns or controls Grantee, or is owned or controlled by Grantee, or otherwise has ownership or control in common with Grantee, including, without limitation, Grantee's Parent Corporation and any subsidiaries or affiliates of such Parent Corporation which meet this definition. 2.6 "Allocation Percentage" means the number of Franchise Area subscribers divided by the number of total System subscribers. 2.7 "Basic Cable Service" or "Basic Service lief' is the lowest priced tier of service that includes the retransmission of local broadcast television signals. Metropolita n Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 48 2.8 "Broadband" means transmission of information over a single medium requiring transmission channels supporting upload throughput rates of at least 144 kbps and download throughput rates of at least 256 kbps. 2.9 "Cable Act" means the Cable Communications Policy Act of 1984, 47 U.S.C.521 et seq., as amended by the Cable Television Consumer Protection and Competition Act of 1992, as further amended by the Telecommunications Act of 1996, and as may be further amended from time to time. 2.10 "Cable Operator" means any person or group of persons (A) who provides Cable Services over a Cable System and directly or through one or more affiliates owns a significant interest in such Cable System, or (B) who otherwise controls or, through any arrangement, is responsible for the management and operation of such a Cable System. 2.1 t "Cable Modem Service" means bi-directional broadband access to the Internet over the cable system and the related equipment used for that purpose. 2.12 "Cable Service" means (A) the one-way transmission to subscribers of (i) video programming, or (ii) other programming service, and (B) subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service, and includes to the extent applicable, RCW 36.910.010, and cable modem services. 2.13 "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 which includes video programming and which is provided to multiple subscribers within a community, but such term does not include (A) a facility that serves only to retransmit the television signals of one or more belevision broadcast stations; (B) a facility that serves subscribers without using any Public Rights-of-Way; (C) a facility of a common carrier which is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, except that such facility shall be considered a Cable System 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 on-demand services; (D) An open video system that is certified by the FCC; or (E) any facilities of any electric utility used solely for operating its electric utility systems. 2.14 "Channel" means a portion of the electromagnetic frequency spectrum which is used in a cable system and which is capable of delivering a television signal whether in an analog or digital format. The definition does not restrict the use of any channel to the transmission of analog television signals. 2.15 "City" means the City of Port Angeles, an optional municipal code city operating under the provisions of Title 35A RCW. 2.16 "City Council" means the City Council of the City of Port Angeles, Washington. 2.17 "City Property" means and includes all real property, utility poles, conduits, bridges and similar facilities owned by the City and all property held in a proprietary capacity by the City. 2.18 "Cit~, Requirements" means all laws, rules, resolutions, regulations, policies and directives of general application of the City of Port Angeles, in effect at present or to be adopted in the future by the City Council. 2.19 "Closed Channel" is an Access Channel that is not available for receipt by subscribers without special equipment or authorization, on which audio, video and data may be transmitted. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 49 2.20 "Converter" electronic device which converts cable channel means an frequencies are not normally receivable by some television sets to an appropriate channel, which permits a subscriber to view signals included in the service being delivered, according to a designated tuning or channel selector dial. 2.21 "Control" or "Controlling Interest" means actual working control in whatever manner exercised. 2.22 "City Manager" means the City Manager or any successor, or his or her designee. 2.23 "Days" means calendar days unless otherwise specified. 2.24 "Demarcation Point," means the physical point at which the Cable System enters the or building. home 2.25 "Downstream Channel" means a Channel capable of carrying a transmission from a Headend to other points on a Cable System, including Interconnection points. 2.26 "Educational Access," means access for schools and other educational institutions and entities. 2.27 "FCC" or "Federal Communications Commission" means the federal administrative agency or lawful successor, authorized to regulate and oversee telecommunications, cable and open video carriers, operators and providers on a national level. 2.28 "Fiber Optic" refers to a transmission medium of optical fiber that supports delivery of Cable Services. 2.29 "Franchise" means this Ordinance, including the Acceptance attached hereto as Exhibit A, which constitutes a binding agreement between the City and Grantee. 2.30 "Franchise Area" or "Service Area" means the present municipal boundaries of the Franchising Authority and shall include any additions thereto by annexation or other legal means. 2.31 "Franchising Authority" means the City of Port Angeles, Washington, or the lawful successor, transferee, or assignee thereof. 2.32 "Government Access," means Access for governmental entities or their designees. 2.33 "Grantee" means Northland Communications Corporation, doing business as Northland Cable Television, or any successor and Affiliate as provided for herein. 2.34 "Gross Revenue" means, for purposes of franchise fee calculations, all revenue received by Grantee, in whatever form and from all sources, in connection with the operation of Grantee's Cable System, including any revenue received by Grantee from any use of any component of the Cable System for any purpose by the Operator or by others. Gross Revenues shall include, without limitation, revenue received from advertising, from installations, from sales occurring as a result of home shopping or similar programming, from leased channels, and from sales of guides to programming. It is the intent of the to include in the Gross Revenue all parties term to Grantee and Affiliates to the fullest extent allowed by law. For purposes of this definition, the term "Affiliate" is limited to an entity acting as a cable operator providing a service authorized by this Franchise. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 50 Revenues shall be determined without deduction for (A) any operating expense; (B) any Gross accrual, including, without limitation, any accrual for commissions; or (C) any other expenditure, regardless of whether such expense, accrual or expenditure reflects a cash payment, but revenue shall be counted only once in determining gross revenues. Gross Revenue includes by way of illustration and not limitation, all fees charged subscribers for any and all Cable Services provided by Grantee over the Cable System, any charges or fees or City public utility taxes imposed on the Grantee by the City by this Franchise and taxes imposed on Grantee that are passed through from the Grantee as a line item paid by subscribers, and all compensation received by Grantee or Affiliates from any source which is derived from the operation of the Cable System to provide Cable Services, such as sales or commissions for any product or services derived from the operation of the Cable System to provide Cable Services and sales or commissions which are paid to Grantee as compensation for promotion or exhibition of any products or services on the Cable System. Gross Revenue includes an allocated portion of all revenue derived by Grantee or Affiliates pursuant to regional or national compensation arrangements for any service or activity derived from the operation of a Cable System to provide Cable Services in the Franchise Area, e.g. advertising and sale. The allocation shall be based on the number of subscribers in the Franchise Area divided by the total number of subscribers relevant to such regional or national arrangements. Revenue of an Affiliate derived from the operation of the Cable System to provide Cable Services shall be Gross Revenue to the extent the treatment of such revenue as revenue of Affiliate and not Grantee has the effect of avoiding the payment of franchise fees which would otherwise be paid to the City. In no event shall revenue of an Affiliate be Gross Revenue to the Grantee if such revenue is otherwise subject to franchise fees to be paid to the City. In the event of bundling of Cable Services with other non-Cable Services offered by the Grantee over its Cable System, the Gross Revenues attributable to Cable Services shall be calculated using the same unit charges or fees paid by subscribers receiving Cable Services only. Gross Revenue does not include any revenue not actually received, even if billed (e.g., bad debt), nor taxes, which are imposed by law directly on the subscriber but collected by the Grantee and passed on to other governmental entities, such as the local and state sales tax. 2.35 "Headend' means a facility for signal reception and/or dissemination on the Cable System including all related equipment such as cable, antennas, wires, satellite dishes, monitors, switchers, modulators, computers, software, and processors for television Broadcast signals. 2.36 "Institutional Network" or "l-Net" means a communications network as provided for in Section 8. 2.37 "interconnect/' "Interconnected" or "lnterconnection" means the provision of an electronic or optical linkage between the Grantee's Cable System and Cable Services or any part, designated Channel or signal pathway thereof and any other designated Cable System and Cable Services or any part, designated Channel or signal pathway thereof, with the result that Cable Services of high technical quality may be ~ansmitted between such Cable Systems. 2.38 "Liquidated Damages" means any requirement imposed on Grantee to pay specified, pre- calculated sums, rather than actual costs, to the City as a result of performance deficiencies identified herein. 2.39 "Normal Operating Conditions" means service conditions that are within the control of the Grantee. Service conditions which are ordinarily within the control of the Grantee include, but are not Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 51 I limited to, special promotions, pay-per-view events, rate increase, regular peak or seasonal demand periods, and maintenance or upgrade of the System, except for unscheduled and/or emergency equipment replacement and testing required by the FCC or this Franchise. Those conditions which are I not within the control of the Grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, programmer originated interruption, and severe weather. The definition of Normal Operating Conditions is relevant in assessing compliance with telephone I answering time, installations, service calls, and repair of Service Interruptions. 2.40 "Open Access" means nondiscriminatory access to Grantee's broadband cable network for providers of wholesale and/or retail broadband cable services, whether or not such providers are I affiliated with Grantee. 2.41 "Open Video System" or "OVS' means a facility consisting of a set of transmission paths I and associated signal generation, reception and control equipment that is designed to provide Cable Service, which includes video programming, which is provided to multiple subscribers within a community, and which the Federal Communications Commission or its successor has certified as compliant with 47 C.F.R., Part 76, as amended from time-to-time. 2.42 "Open Video Service" means video programming by means of an open video system. 2.43 "Person" means a corporation, company, association, joint stock company or association, finn, partnership, limited liability company and individuals and includes a lessor, trustee and receiver or such an entity, but does not include the City. I 2.44 "Programming" means the video, audio, voice, data, multimedia or other material or programs prepared for or capable of transmission on a Cable System, or, as the context requires, the I process of causing such material to be created, received, transmitted or distributed on a Cable System. This definition is not intended to, nor shall it, change or expand the scope of cable service as defined herein. I 2.45 "Public Way, Street, or Right-of-Way" means land acquired or dedicated for roads and public streets and easements for which, under City ordinances and other applicable laws, the City has I authority to grant master permits, licenses or leases for use thereof, or has regulatory authority thereover, and may be more specifically defined in the master permit, license or lease granting any right to or use thereof. "Rights-of-way" for the purpose of this Chapter do not include buildings, parks, poles, conduits or similar facilities or property owned by or leased to the City, including, by way of example and not I limitation, structures in the right-of-way such as utility poles and bridges. 2.46 "Residential Dwelling Unit" means each home, house, building, or other structure that I normally accommodates the living quarters of one (1) family, and each apartment, condominium, or co-operative unit that normally accommodates the living quarters of one (1) family In any multiple-unit building or complex of multiple-unit buildings; provided, however, that if the Grantee has not been I granted the authority by an owner or association of owners to extend its facilities to individual apartments, condominiums, and co-operative units within the interior of such multiple-unit buildings or complex of multiple-unit buildings, then any such multiple-unit building or complex of multiple-unit i buildings shall be considered a single Residential Dwelling Unit. 2.47 "Service Interruption" or "Outage" is defined as being a Cable System malfunction resulting in the loss of picture or sound on one or more channels affecting more than one subscriber. The I definition of Service Interruption or Outage affects the timing of when the Grantee must respond to a Service problem. i Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 52 2.48 "Standard Drop or Drop" means the cable connection between the subscriber's premises and the cable system up to a maximum length of one hundred fifty (150) feet measured from six inches (6") outside the nearest exterior wall of the subscriber's premises to the Cable System. 2.49 "Subscriber" means any Person who is lawfully receiving, for any purpose or reason, any Cable Service whether or not a fee is paid, including each such person in a multiple unit building, except for purposes of reporting or cost allocation, where equivalent subscriber basis may be used. 2.50 "Tier" means a level of Programming Services offered by Grantee to subscribers as a package. 2.5 ! "Upgrade" means an improvement in any aspect of a Cable System. 2.52 "Upstream" means a transmission to a Headend from any other point on the Cable System, including Interconnection points. 2.53 "Upstream Channel" means a Channel capable of carrying a transmission to a Headend from any other point on a Cable System including Interconnection points. SECTION 3. GRANT, TERM AND ACCEPTANCE OF FRANCHISE 3.1 Grant Of Cable Franchise 3.1.1 There is hereby granted, subject to Grantee's acceptance of the terms of this Franchise as provided herein and the City's prompt receipt of monetary compensation for a term as described below, unless otherwise terminated as provided for herein, the non-exclusive right and privilege to have, acquire, construct, expand, reconstruct, maintain, use and operate in, along, across, on, over, through, above and under the Public Rights-of-way of the City, a Cable System to provide Cable Service. In the event the Grantee or its Affiliate either seeks to provide or to allow others to use its Cable System to provide non-cable services, Grantee agrees to obtain all lawfully required City, state or federal permits, consents or franchises or other required authorizations. 3.1.2 Nothing in this Franchise shall authorize Grantee to attach any part of its Cable System to any City Property or infrastructure or to use any City-owned conduits or facilities until Grantee has all required agreements, permits, licenses from the City, supported by independent consideration, for such rights of attachment or use. 3.2 Acceptance of Franchise. Grantee shall, before adoption of this Ordinance, file in the office of the City Clerk a written instrument, in a form acceptable to the City Attorney, accepting either a basic or extended term Franchise, and all terms and conditions thereof, signed and acknowledged by its proper officers. The written acceptance shall be accompanied by the Bond, Letter of Credit and Certificate of Insurance in accordance with Section 9, and Grantee shall pay the City its direct expenses incurred in this Cable Franchise Renewal Process, but not to exceed five thousand ($5,000) dollars. SECTION 4. BASIC FRANCHISE TERMS 4.1 Franchise Not Exclusive. This Franchise is not exclusive, provided it is granted in accordance with Section 8.17. 4.2 Term Metropolitan Communications Consultants 8/31/01 I Appendix tl.20 - Informal Proposal for the Cable Franchise Renewal page 53 I 4.2.1 Basic Term. The basic term of this Franchise shall commence on the effective date of this Ordinance and shall extend for a period of four (4) years. Should the Grantee not accept an extended term as part of acceptance of this franchise, all gross revenues, including cable modem services, I shall be subject to a public utility tax in addition to a franchise fee, in accordance with Chapter 5.80 PAMC, Business License and Regulations, as amended. I 4.2.2 Extended Term. i (1) The basic term shall be extended by an additional six (6) years, provided an upgrade of the Cable System is completed within nine (9) months from the Effective Date of the Franchise. The upgrade shall meet all the i following requirements: (a) Broadband cable infrastructure as set forth in Section 5.1.1. (b) Nondiscriminatory open access as set forth in Section 5.1.2. I (c) Provision of standaxd drop, fiber to requesting businesses, to enable broadband cable services, either by the Grantee or by other service providers, as set forth in Section 5.5. I (d) Provision of Grantee affiliated or non-affiliated cable modem services as set forth in Section 5.3. (e) Provision of an Institutional Network as set forth in Section 8. I (f) City bi-directional use as set forth in Section 8.5.2 (g) Activated capacity of 750 MHz (h) Comply with the City's Telecommunications Ordinance, Chapter 11.14 PAMC I (2) Grantee shall have a right to obtain the Extended Term if Grantee is: I (a) In substantial compliance with the material terms and conditions of this Franchise; and (b) Has fully complied with all requirements set forth herein, all as I affirmatively determined by the City Manager and evidenced in the City Manager's written report to the City Council. I 4.3 Service Availability 4.3.1 Franchise Area. Throughout the term of this Franchise, the Grantee covenants and agrees to construct, operate, maintain and upgrade the Cable System so as to make all Cable Services I distributed over the Cable System available to any person within the Franchise Area in accordance with the terms, schedule, sequence and procedures established in this Franchise, except for any such service which is provided on a test basis and provided, however, that a new Cable Service may be introduced on I a phased basis in different areas of the City over a period no longer than one year. 4.3.2 Annexation. Whenever any of the roads as designated outside of this franchise I shall fall within the City or town limits by reason of subsequent incorporation or annexation, then all the rights and privileges herein granted shall be in full force and effect. Within thirty (30) days of such incorporation or annexation, the Grantee shall revise its billing records to comply with this franchise. I 4.3.3 Further, the Grantee shall that Cable Service is denied to ensure access to any not any group of potential subscribers because of the income of the residents of the area in which such group resides or geographic location (subject to Section 3.8). It shall be the right of all subscribers to receive continuously all available Cable Services insofar as their financial and other obligations to the Grantee are i Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 54 honored. The Grantee shall continuonsIy monitor the implementation of the commitments set forth in this Subsection. 4.4 Line Extension Policies 4.4.1 Grantee shall extend its cable system and make cable service available to every existing residential area within the Franchise Area, if requested, whenever density of at least thirty (30) Residential Dwelling Units for overhead construction and forty-five (45) Residential Dwelling Units for underground construction per cable mile (or any proportionate amount thereof measured over a shorter or longer distance) is realized, as measured from the existing facilities of Grantee's cable system in the Franchise Area. 4.4.2 For purposes of this Section, density per cable mile shall be computed by dividing the number of Residential Dwelling Units in the area by the length, in miles or fractions thereof, of the total amount of aerial or underground cable necessary to make service available to the Residential Dwelling Units in such area in accordance with Grantee's system design parameters. The cable length shall be measured from the nearest point of access to the then-existing system, provided that extension is technically feasible from that point of access. The total cable length shall exclude the drop cable necessary to serve individual subscriber premises. 4.4.3 Grantee shall extend its cable system necessary for the provision of cable service and make cable service available to any business in the Franchise Area when the business subscriber agrees to pay for the labor costs incunted and materials used in making the extension, beyond the cost of a standard drop. 4.5 Rate Regulation 4.5.1 Rates and Charges. The Franchising Authority may regulate rates for the provision of Basic Cable and equipment as expressly permitted by applicable law. 4.5.2 The City Manager will notify the Grantee of the effective date that the City will regulate basic service tier rates as provided by federal law. After the effective date, those fees and charges subject to regulation by the City shall not be increased without prior approval of the City, except as allowed by law. The City reserves the right to regulate rates for any service pursuant to federal or state law which authorize such regulation. The City reserves the right to establish procedures for any lawful regulation of rates. 4.5.3 Reasonable Discounts and Notices Provided. Grantee shall provide reasonable discounts, notices to subscribers, and reports to the City as follows: (1) Grantee shall provide a discount of not less than thirty percent (30%) on the lowest generally available Basic Service Tier rates, installation, and equipment rental charges if necessary to receive service, to subscribers with low incomes not exceeding 125% of the federal poverty level or to subscribers living in subsidized housing or in a housing subsidy program. (2) Grantee shall notify subscribers in accordance with Exhibit C "Subscriber Service Standards, Section VII Notices and Subscriber Communications". (3) Grantee shall determine qualifying subscribers and provide reports to the City in accordance with Exhibit D "Subscriber Service Reporting Requirements, Reports 1.3 C'. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 55 (4) Subscribers meeting low-income criteria subscribing to a higher tier of service shall only be eligible for a discount equal to the discount for Basic Service. (5) At such time as no cable operators in the City offer Basic Service as a distinct tier of service, discounts shall be applied to the lowest tier of service offered subscribers. In no event, shall the discount be less than when set at thirty percent (30%) of Basic Service. 4.6 Provision for Franchise Amendment 4.6.1 It is the intent of both parties that each party shall enjoy all fights and be subject to all obligations of this Franchise for the entire term of this Franchise and, to the extent any provisions have continuing effect, after its expiration. However, both parties recognize that the technology of cable television and related technologies are in a state of flux and that regulatory conditions and franchise rights and powers may change drastically during the term of this Franchise. 4.6.2 Should such changes occur, as determined by the City, the provisions and procedures of Section 13 (Reopeners) shall govern, and the City and Grantee shall negotiate in good faith to amend this Franchise to preserve the rights and obligations of the City and Grantee hereunder to the fullest extent consistent with such changes. 4.6.3 The parties agree that the perpetuation of the substantial equivalent of the current statutory and regulatory structure governing cable television is not a condition of this Franchise, or a fundamental assumption that either party is making in entering into it; provided, however, nothing herein shall prevent either the City or Grantee from asserting that any part or parts of this Franchise are preempted by state or federal law as a result of such changes. SECTION 5. GENERAL CABLE SYSTEM REQUIREMENTS 5.1 Principal Features 5.1.1 Broadband Services. The Grantee's upgraded Cable System shall be an integrated services, broadband cable infrastructure, capable of bi-directional delivery to all subscribers, of a variety of broadband cable services, including but not limited to cable modem Internet services, as well as cable television, over the shared infrastructure. 5.1.2 Open Access. (1) t the City Manager s request, Grantee shall provide nondiscriminatory, open access to Grantee's broadband cable system by the City and other qualified wholesale and retail service providers meeting normal connection protocols as set forth in this Section, whether or not such providers are owned or affiliated with Grantee, unless otherwise prohibited by applicable law. (2) The Grantee's anticipated charges for open access shall be provided to the City upon acceptance of the franchise and shall be comparable to competitive market rates. 5.2 Cable System Standards. The Grantee's Cable System shall comply with all applicable laws, ordinances, and safety requirements including but not limited to the Federal Communications Metropolitan Communications Consul/ants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 56 Commission, Federal Aviation Administration, National Electric Code, National Electric Safety Code, and National Cable Television Association Standards of Good Engineering Practices. 5.3 Cable Modem Service. Grantee and the City agree to the following principles with respect to Cable Modem Service to further the City's commitment in encouraging connectivity, interoperability, and openness among Internet resources. Grantee shall ensure that the broadband Internet access services provided over Grantee's cable system in Port Angeles will conform substantially to the following standards: 5.3.1 The broadband Intemet platform will be kept current with standards for interoperability with Intemet protocol applications. 5.3.2 Subscribers to the broadband Internet service, whether affiliated or unaffiliated with Grantee, will be able to reach any and all information on the Intemet and will be able to choose to reach information from other sources and through other Internet service providers and on line access providers without viewing content provided by the affiliated broadband Internet service provider, as long as said other Intemet service providers agree to either directly connect to Grantee's network or their systems are publicly accessible over the common lntemet or peering arrangements are made in carrier hotels (see 5.3.3) between said other Internet service providers and Grantee. sixty (60) days of the City Manager's notice, Grantee shall provide at no 5.3.3 Within cost, a data network backbone connection to a network access point (commonly referred to as a "carrier hotel,") and interconnection arrangements will be made with local educational and governmental information sources through a coordinated non-profit interconnection point. Similar interconnection relationships with other Intemet service providers and on-line service providers will be established at a suitable interconnection point or points under reasonable terms and conditions acceptable to the Grantee and service provider. Additional backbone connectivity to other national data network backbone providers will be established through interconnection at other backbone connection points within the region, under reasonable terms and conditions acceptable to all parties, including without limitation, requirements that the connecting entity provide its own transport and other necessary equipment. 5.3.4 Grantee agrees that the obligations set forth in this Section may be reopened for resolution under the same procedures for reopening and resolving franchise issues under Subsections 13.1 and 13.2 of the Franchise upon any of the following occurrences: (1)If the broadband Internet service fails to substantially conform to stated standards. (2) If federal law relating to cable television regulation is modified by actions of Congress, the Federal Communications Commission, or a court of final jurisdiction, imposing substantially different standards on or affecting the authority of franchising authorities. (3) If any other comparable cable system owned by Grantee offers direct access to broadband cable modem technology by unaffiliated Intemet service providers or on-line service providers on other than a temporary test basis and such offering is not available in the City. City shall maintain its role regarding consumer protection provided that the 5.3.5 The Cable Modem Service is not subject to the direct regulation of subscriber service issues by either the Federal Communications Commission or the Washington Utilities and Transportation Commission or by the City. Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 5? I 5.4 Cable Plant Topography 5.4.1 Network Operating Center. The Network Operating Center will contain a I CATV head end, telephone and data switching facilities used to originate and receive communication and entertainment services, and transmit analog and digital signals over the network. 5.4.2 Backbone Nodes. Backbone Nodes will be built around a minimum 96 strand I single mode optical fiber primary backbone to serve approximately 10,000 subscribers. Each node will include fiber management, routing and cable modem equipment. Distribution/transport rings will i originate at the backbone nodes and feed remote terminals. 5.4.3 Remote Terminals. Remote terminals serve clusters of 700 to 800 subscribers and will have standby battery electrical powering equipment. Broadband cable services will be delivered to I requesting business subscribers via fiber. Video services will be delivered to subscribers via a hybrid fiber coaxial cable system. I 5.4.4 Local Nodes. Local nodes serve clusters of 200 to 250 subscribers and will serve as the optical to electric conversion point for video services. They will receive forward optical signals over the fiber optic cable, convert them into electrical radio frequency (RF) signals and transmit tl~m over the i coaxial cable to the subscriber. The local node will also convert upstream RF signals from in-home set-top boxes into optical signals for delivery to the remote terminal and, in turn, to the head end or network operating center. Local nodes are small units, and will typically be mounted in apartment building stairwells, on cable strands, or in a pedestal cabinet. I 5.4.5 Subscriber Drops. Cable service signals will be converted from optical to electrical RF at local nodes and carried on coaxial cable standard drops to the subscriber sites, or Ialternatively on six (6) fiber strand standard drops into requesting business subscriber sites. 5.5 Headend. Grantee's headend will be housed in an "environmentally hardened" I building, with sufficient air conditioning and power conditioning equipment both for short-term and long-term equipment installation. Standby powering will be installed of sufficient size to be able to provide a continuous supply of electricity in the event of loss of commercial power. I 5.6 Upgrade to Keep Technology Current. City's request during At the the extended Franchise term, upon the showing required pursuant to Section 5.7 and subject to the franchise reopening procedures of Section 13, the Cable System, and any affected component thereof, shall be upgraded to I match current technology. Upon acceptance by the City of such upgrade, the extended term of this Franchise may be extended an additional five (5) years. The appropriate costs of the upgrade shall be deemed external costs passed directly to subscribers for rate regulation purposes, at Grantee's option. i 5.7 Technical Upgrade Procedure I 5.7.1 At any time after the basic term of this Franchise, the City may require a technical upgrade of the Cable System upon the following showing: (1) that the upgrade is commercially practicable considering the remaining I term of Franchise and Grantee's to the costs of considering ability such upgrade plus a reasonable rate of return on such upgrade investment, provided that the City may extend this franchise to allow I such recoupment; and (2) that the requirement for such upgrade is uniformly applied to all of the City's cable service franchisees; and, either ! i Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 58 that there is a material disparity between the level of service and (3) capacity of Grantee's Cable System and that of a significant number of other comparable systems using technology generally available in the City, and that there is a demonstrable need and public interest to be served by the upgrade; or (4) that at least thirty percent (30%) of the comparable cable systems owned or operated by Grantee's Affiliates have upgraded their capacity to a material degree beyond that of Grantee's Cable System. 5.7.2 The City may conduct an inquiry to determine whether the required showing can be made. Grantee shall cooperate with the City in the investigation and provide information, including, if reasonably available, estimated general cost figures, technical specifications, and equipment specifications that may assist such an undertaking. 5.7.3 Grantee acknowledges and agrees that the City's investigation may include information not provided by Grantee and that the City may commission third parties, as necessary, to ascertain facts in support of either showing. The public may also be invited to comment on the technical currency of Grantee's system. 5.7.4 In the event the City's investigation indicates that a technical upgrade may be necessary under the required showing, the City may invoke the provisions and procedures of Section 13 to determine whether and to what extent an upgrade of the system is required. 5.7.5 Upgrade Plans and Permits. Within sixty (60) days of the City Manager's notice, Grantee shall submit its upgrade plans and a construction schedule for City approval. Work shall proceed within thirty (30) days of the City's approval of the Grantee's submittal. All construction shall be in the City's permitting process. 5.7.6 Extension of Construction Deadlines. Grantee shall obtain City authorization for any extension to the prescribed time limit for consla-uction of an upgrade. Such extension shall be authorized only when the City finds that such extension is necessary and appropriate due to causes beyond the control of the Grantee. The City shall not unreasonably withhold its authorization. 5.8 System Reliability and Performance. Grantee's system will meet or exceed FCC technical standards, as amended. Grantee's Cable System will be backed up with an average of four (4) hours standby power at each node and at such cable plant that is contiguous to such node. The Cable System powering will be monitored, and crews will be dispatched in the event of loss of commercial power. In the event that the system cables or fiber optic lines are severed, Grantee will respond within an average of two (2) hours and will correct all such outages, within its control, within 24 hours. 5.9 System Capacity and Features 5.9.1 Grantee's system will have the following capacity and features: Downstream (1) Frequency Spectrum: 54-750 MHz. (2) Analog Channel Capacity: At least 70 channels. Upstream (1) Frequency Spectrum: 5-40 MHz. (2) Analog Channel Capacity: 4 N.T.S.C. video channels. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 59 5.9.2 Grantee's will meet the broadband services and system open access requirements described in Section 5.1. 5.10 Subscriber Equipment Interface and Control. Grantee will comply with the FCC's standard on equipment compatibility. 5.11 Emergency Alert System 5.11.1 Within ninety (90) days of a request by the City Manager, Grantee shall implement a system for providing restricted audio override of all audio, and interrupt of all video Channels, during emergencies, with override to be placed under the City's control, in compliance with FCC rules. The emergency alert system shall provide for activation from the City Manager's office and/or the City's emergency operations center, with coded access for both audio and video messages. Upon the Grantee shall with the City to test the override for request by City, cooperate periods not to exceed one (1) minute in duration and not more than once every six (6) months. Notwithstanding the foregoing, FCC rules governing emergency alert systems shall take precedence if in conflict with this Section. 5.11.2 The cable override shall consist of audio and crawler text signals as required by the Federal Communications Commission rules governing the new emergency alert system (EAS). 5.11.3 The Grantee shall provide and maintain all equipment, systems, software, services, security provisions, and procedures required for a fully operational emergency cable override warning system in accordance with FCC rules. 5.12 FCC Testing. The Grantee shall maintain for inspection by the City a copy of the final each of test required by Part 76, Subpart K, of the rules and regulations of proof performance the FCC or any successor regulation or law. If the FCC shall cease to require such tests, or if the FCC's regulations do not apply pursuant to 47 CFR § 77.601(c), the Grantee shall continue to conduct such tests at least once every calendar year (at intervals not to exceed 14 months) and shall maintain the resulting test data on file at its local office for at least five (5) years. The City may require Grantee to provide within a reasonable period of time as the City may designate, a full report on any deficiencies disclosed by the proof of performance test. 5.13 As Built Drawings. Within one hundred twenty (120) days of completion of each segment of Grantee's facilities, upon the request of the City Manager, Grantee shall supply the City with a complete set of current drawings for that segment in a format to be prescribed by the City Manager. Grantee may exclude proprietary information. SECTION 6. PROGRAMMING AND SERVICES 6.1 Grantee Compliance. Grantee shall meet or exceed the programming and channel capacity requirements set forth in this Franchise. 6.2 Programming and Channel Capacity. Beginning no later than the date on which the entire Cable System is to be activated, or, if activated in phases at Grantee's discretion, then when each phase is activated, Grantee shall provide: 6.2.1 Activation of a minimum Downstream Channel of 70 activated analog channels to ali subscribers. MetropolRan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 60 6.2.2 Closed Channels in sufficient number and technical quality to permit the implementation of the Closed Channel requirements of the Franchise. 6.2.3 In addition to programming provided on access channels and local off-air broadcast channels, if any, Grantee shall provide the following broad categories of programming: (1) Education (2) News & information (local, regional and national) (3) Sports (local, regional and national) (4) Cultural and performing arts (5) Government affairs (6) Weather (7) Programming addressed to diverse ethnic and minority interests (8) Audio programming (including a selection of local FM radio stations) (9) Business news (10) General entertainment (including but not limited to movies) (11) Children's programming (12) Family programming (13) Science/documentary (14) Canadian programming 6.2.4 The requirements for each category of programming may be satisfied by providing a separate channel devoted substantially to the category or by programming from more than one channel which in the aggregate totals the equivalent of a channel devoted substantially to the category. 6.3 Community Programming Needs 6.3.1 In addition to the programming requirements in Section 6.2 and the City's subscriber service standards, Grantee agrees to produce, or con~act to produce, and air a minimum of twenty (20) hours of locally produced programming per month. Grantee agrees to use its best efforts to encourage and utilize programs produced by others. Grantee shall make its best efforts to insure that local programming meets the needs of subscribers within the City of Port Angeles for diverse programming on issues of local interest. 6.3.2 The parties expressly agree that the programming described in paragraph 6.2.3 represent broad categories of video programming within the meaning of 47 U.S.C. 544(b) (2) 03). 6.3.3 Grantee agrees to air a minimum of twenty (20) hours of no cost commercial-free educational programming per month and provide 2 copies of program guides for each school library media center and the School District Instructional Materials Center. 6.4 Subscriber Mailback Programming Survey. Within ninety (90) days after the request of the City Manager, not more frequently than twice during the basic term and six times during the extended term of this Franchise, the Grantee shall furnish to all subscribers along with their monthly service statement, a survey covering broad categories of programming and other services available to subscribers, subject to prior review by the City Manager. The survey shall be in the format of a mailback survey for determination of the subscribers' programming preference. Within ninety (90) days, the results of the survey shall be provided the City by the Grantee with any proposed change(s) in programming to accommodate subscribers' desired revisions as indicated by the results of the survey. Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 61 I 6.5 Community Needs Ascertainment Process 6.5.1 Not more frequently than once during the basic and extended term of this I Franchise, the City may also arrange and pay for a systematic ascertainment of the community's views regarding the nature and adequacy of Grantee's performance of this Franchise and the needs and interests of the community and subscribers regarding this Franchise. I 6.5.2 The ascertainment shall be conducted by an independent entity using generally accepted market research techniques. A written summary of the findings made by such an ascertainment i shall be provided to Grantee. Such summary shall include a description of the methodology used. 6.5.3 Within 30 days of the delivery of such summary, Grantee shall pay to the City, in addition to all other fees and charges due under this Franchise, the costs incurred by City in performing I such ascertainment and summary or $1.00 per subscriber whichever is less. In the event such ascertainment process and summary is conducted jointly in connection with similar ascertainments of other Cable Service franchisees, then Grantee's obligation shall be its prorated share of the costs or $1.00 Iper subscriber, whichever is less. 6.6 Deletions or Reduction of Programming Categories. Grantee shall not delete or so limit as i to effectively delete any broad category of programming within its control for any group of subscribers without the City Manager's consent, which shall not be unreasonably withheld, and shall provide at least 30 days' prior written notice to the City Manager of Grantee's request to do so, including all proposed changes in bandwidth allocation, channel lineup, and any assignments, including any new equipment I requirements that occur as a result of these changes. may 6.7 Obscenity. Grantee shall not transmit, or permit to be transmitted, over any channel any I programming that is obscene and is not protected speech under the Constitution of the United States. Grantee shall adopt a written policy prohibiting obscene programming. This Section shall not apply to Internet transmissions. I 6.8 Parental Control Device. Upon request by any subscriber, Grantee shall make available at Grantee's actual cost a parental control or manual non-electronic lockout device compatible with the i subscriber's equipment that will enable the subscriber to block access to any or all channels. Grantee shall inform its subscribers of the availability of the lockout device at the time of the original subscription and annually thereafter, and if requested by the subscriber, shall provide the device at the time of the original installation. I 6.9 Closed Caption Signals. Grantee shall retransmit all closed-capfioned signals, which are made available by programmers in conjunction with programming in its line-up and which are provided i in order to facilitate viewing by handicapped persons. Grantee shall maintain the necessary head-end equipment to make secondary audio programming (SAP) features available to subscribers. Grantee's obligations under this subsection do not extend to providing customer premises equipment. I 6.10 Cable Service to Community Facilities 6.10.1 Within ninety (90) days of a request by the City Manager, Grantee shall provide, I to facilities included in Exhibit B and future institutions identified the and within as by City Manager, one hundred fifty (150) feet of the Cable System, one (1) free cable television service outlet at the most commonly subscribed service level and one (1) free cable modem and broadband Internet service sixty Idays after such service is available to subscribers. Each free cable television service outlet shall include a free Converter, if necessary, and maintenance thereof by Grantee. Hardware and the installation thereof for an internal video distribution system shall be provided by the facility served. ! i Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 62 I 6.10.2 Within ninety (90) days of a request by the City Manager, Grantee will provide, at no charge, an appropriate interface to any internal video distribution system in the facilities described in Section 6.10.1, so long as the facility insures that such internal system complies with the FCC's signal leakage and signal quality standards and does not interfere with or adversely affect the Grantee's Cable System, including the upstream capacity. There will be no charge for cable service on any additional outlets, except that Grantee may pass through any charge imposed on Grantee by a program supplier and Grantee may impose a charge for equipment for additional outlets. 6.11 Subscriber Service Standards. The Grantee agrees to abide by the subscriber service standards attached as Exhibit "C" and the subscriber service reporting standards attached as Exhibit 'D" hereto. In accordance with federal law, the City may promulgate additional or revised subscriber service standards, so long as they are reasonable and the Grantee is allowed a reasonable opportunity to comment on such revisions prior to adoption. SECTION 7. ACCESS CHANNELS AND SUPPORT 7.1 Minimum Channel Capacity. In addition to the current one (1) Access Channel in the Franchise Area, currently activated as Channel 21, within ninety (90) days after the City Manager's request, the Grantee shall activate a second and a third Access Channel in the Franchise Area, for a total of three activated Access Channels during the basic fi'anchise term. Of the three activated Access Channels, the City Manager shall dedicate at least one channel for Governmental use and one for Educational use. 7.2 Access Channel Activation Utilization Criteria. Additional Access Channels may be activated, upon request by the City Manager, when the average daily use of the existing Access Channels meet the following criteria: 7.2.1 Governmental and Educational Access Channels are used for access purposes with non-commercial Governmental and Educational programming of any type that is distinct and non-repetitive during six of the fifteen hours between 7:00 a.m. and 10:00 p.m., during any consecutive ten (10) week period. 7.2.3 Except for character-generated announcements, the programming of additional Access Channels required shall be distinct and non-repetitive of the previous Access Channel. Based upon these criteria, the Grantee shall, within ninety (90) days following a request by the City Manager, provide another designated Access Channel in the Franchise Area for this purpose. The City Manager shall have the right to designate whether each such additional Channel will be utilized in whole or in part for public access, educational, or government programming. 7.2.4 Minimum Usage. Additional Access Channels must carry a minimum annual average of four (4) hours per day of non-commercial video programming that is distinct and non-repetitive, five (5) days per week, beginning six (6) months after activation of the channel and thereafter. If an Additional Access Channel fails to meet the continuing criteria of programmed usage for one hundred eighty (180) continuous days of operation, such channel shall revert to the Grantee for whatever use it deems appropriate, until the City can demonstrate that the minimum utilization criteria set forth herein will be achieved, however, the City may not request reactivation of such a channel no sooner than twelve (12) months after such reversion to Grantee. 7.2.5 Channel Placement. Access channels shall be included in the basic channel lineup. The Government Access channel shall be assigned a position between channels 2-13 as part of the first change to the Grantee channel lineup after the effective date of this Franchise. Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 63 7.3 Additional Access Channels. During the extended term of the Franchise, when the utilization criteria of Section 7.2 are met, evidenced by written documentation, and within ninety (90) days after a request by the City Manager, the Grantee shall make available to the City, up to two (2) additional activated Access Channels in the Franchise Area ("Additional Access Channels"). In no event shall there be more than a total of five (5) activated Access Channels during the extended franchise term. 7.4 Allocation of Access Channels. 7.4.1 The City Manager shall, in accordance with the provisions this Section determine the number of Access Channels to be used and allocate to various entities access to the Access Channels in the Franchise Area to meet their requirements. The by the institution or must request provide the City Manager with sufficient plans for operating expenses, technical configuration, channel use, and public purpose. In the event that making available a Channel for Access Channel purposes requires displacement of other programming, the City shall give Grantee at least 90 days written notice. 7.4.2 The City Manager may designate Access Channel use in the Franchise Area for use by educational or governmental access users or organizations at the City's sole discretion, including order and priority of programming. The City Manager may designate one Access Channel dedicated exclusively for either educational or governmental uses or may combine users on a shared basis on activated Access Channels in the Franchise Area. 7.5 Use of Access Channels. 7.5.1 The Access Channels in the Franchise Area shall be placed under the authority of the City Manager for use related to governmental and educational purposes. 7.5.2 Access Channel programming may include financial sponsorships and underwriting with acknowledgment of those sponsors Or underwriters. 7.5.3 No restrictions shall be placed on the use of these Access Channels for a public purpose of a governmental entity or curriculum requirement of an educational institution, except as provided in this Franchise or by law. Except as provided by law, Grantee shall not exercise editorial control over programming of any Access Channel. At no time shall the Grantee interrupt at its headend or signal provided on any express consent of the City, except in hub the Access Channel the circumstances beyond Grantee's control. 7.5.4 90 days after the acceptance of this Franchise, the City Manager may, from time to time, restrict the cablecast of one or more Access Channels by use of a scrambling device (or similar equipment) to allow reception only at selected locations to provide Closed Channels to be accessed at those locations. Grantee shall furnish, at no charge to City, all equipment necessary sixty (60) days after the City Manager's request for use of the Closed Channel at City designated facilities, but not to exceed 100 descrambling devices and no more than two scrambling devices of the type to be approved by the City. 7.6 Digitization of Analog Channels. The City may require Grantee to digitally compress one or more of the Access Channels at or after the time that Grantee converts a maiority of the local broadcast channels carried its Cable to transmission. Grantee its System digital discretion, move analog Access Channels to a digital format, if and when all subscribers who wish to receive the channels already have the necessary equipment. 7.7 Technical Quality. Grantee shall maintain all Ups~eam and Downstream and Closed Access Channels and Interconnections of Access Channels at the level of technical quality and reliability Metropolitan Communications Consultants g/31/O1 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 64 required by this Franchise and all other applicable laws, rules and regulations or at the same level of quality as comparable subscriber Channels, whichever is higher. 7.8 Designated Access Channel Managers. 7.8.1 The City shall name Designated Access Channel Managers for Education, and Governmental Access programming. The Designated Access Channel Managers shall have sole responsibility for operating and managing their respective Access Channels. 7.8.2 Grantee shall cooperate with Designated Access Channel Managers and providers and facilitate their use of Grantee's Cable System and Programming of Access channels. Grantee shall enter into such operating agreements with Designated Access Channel Managers as are appropriate to meet Access requirements of this Franchise. 7.9 Video Feeds. Within ninety (90) days of a request by the City Manager, Grantee shall install for the City's use and at no cost to the City, upstream video feeds from no more than five (5) locations designated by the City, provided such locations are within Grantee's service area and located within 150 feet of Grantee's Cable System, to either Grantee's headend or other connection point capable of transmitting a video signal. Grantee shall also provide and install, for the City's use and at no cost to the City, any equipment reasonably necessary for the City to transmit signals via the Video Feeds. Grantee cooperate with the City to facilitate connections to other PEG channel production facilities. Provided, however, nothing herein shall obligate Grantee to expend any additional funds over and above those required to provide video feeds from the 5 locations set forth herein. 7.10 Rights to Access Channel Programming. Grantee shall have no rights to Access Channel programming by virtue of cablecasting or distributing such programming over its Cable System, except fo Grantee s right to transrrut such programming to all the subscribers rece~wng a s~gnal from the Cable System headend serving the Franchise Area. All fights to programming content and intellectual property of any type transmitted by Grantee remains the property of the owner/programmer, regardless of the individual or entity requesting transmission. No intellectual property transmitted over Access Channels or bandwidth shall be retransmitted by Grantee or any Affiliates in whole or in part without the consent of its owner. Resources. Grantee shall provide, at no charge to the City, the following: 7. 1 I Access Channel 7.11.1 Staffing and Equipment. The Grantee shall provide the technical advice necessary to transmit access programming on the Access Channels as directed by the City, as applicable, on an as-needed basis. Grantee shall provide on a timely and as needed basis use of all necessary equipment for access users to produce and edit programming, upon reasonable advance notice. Grantee shall repair and replace any damaged equipment of Grantee, except for equipment damaged due to the neglect or improper use by an access user. Such staff and equipment shall be available during normal business hours at no charge to the access user and at other times for a reasonable and fair charge consistent with making equipment widely available. For the purposes of this Section, normal business hours shall be considered to be the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday, excluding legal holidays. respect to access, at the request of the City Manager, the Grantee shall 7.11.2 With provide up to twenty (20) hours per month of use in the aggregate of the Grantee's staffing and technical services ("Staff and equipment time") for production of live and video taped Educational and Governmental programs. The City will reimburse Grantee's actual costs in excess of twenty (20) hours averaged monthly. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 6§ 7.11.3 The Grantee shall maintain the interconnection and electronics on the Cable System such that "live" or videotaped programming may be cablecast via Access Channels from the Port Angeles City Council Chambers and at four (4) additional sites selected by the City, taking due consideration that the cost for such electronics on the Cable System be comparable to the expenses for the electronics on the Cable System allowing cable-casting from the Port Angeles City Council Chambers. Grantee shall not be responsible for the maintenance of electronics on site, or any other customer premises equipment, for such cablecast. 7.12 Grantee Capital Contributions and Other Support for Access Channels 7.12.1 Grantee shall provide funds for production facilities and equipment for Access Channels in an amount of $150,000 during the basic Franchise term, and $30,000 per year during the extended term, paid pro rata to the City quarterly by the Grantee for the extended term, if any, after the initial four (4) years. The initial term funds of $150,000 will be provided to the City promptly upon request by the City Manager. All such facilities and equipment shall be for the benefit of the City and its residents and shall be subject to the sole control of the City. The City shall provide annually a detailed accounting of the capital expenditures with such funds. At the termination of this Franchise, any unspent funds would be returned to the Grantee to be refunded to the then subscribers on a pro rata basis. Grantee, in its discretion, may pass along such cost as a line item to subscribers, in accordance with and to the extent allowed by federal law. 7.12.2 The City shall continue to provide playback services for the Access Channels originating at City Hall and shall provide and maintain all its equipment, referenced in Section 7.11.1, currently located at 321 East Fifth Street, Port Angeles, Washington, for Access Channel pttrposes. 7.12.3 Grantee shall provide an annual operational contribution to support the adequate operation of access channels in the amount of 15 cents per subscriber per month. 7.13 Agreement as to Access Channel Contrlbution. The Grantee acknowledges that all contributions, services, equipment, facilities, support, resources, and other activities to be paid for or supplied by the Grantee pursuant to or in connection with its performance under this Section are for the benefit of all subscribers and the public. For purposes of this Franchise, the Grantee agrees that such contributions, services, equipment, facilities, support, resources, and other things of value are not deemed to be (1) "payments-in-kind" or involuntary payments chargeable against the compensation to be paid to the City by the Grantee pursuant to Section 10 hereof, or (2) part of the compensation to be paid to the City by the Grantee pursuant to Section 10. The City shall provide Grantee by August of each year the amount of the capital contributions in Section 7.12.1 to be expended by the City in the following calendar year for capital expenditures under this Section. 7.14 Access Channel Interconnection. For the purpose of making all Access Channels available to all subscribers, Access Channels on Grantee's Cable System shall be capable of being interconnected with other Cable Systems throughout the City, for cablecast of the Access Channels and actual interconnection shall be implemented upon request of the City Manager provided that (1) interconnection is technically feasible; (2) Grantee and the other operator agree upon reasonable interconnection arrangements, including an allocation of the costs of interconnection between Grantee and such other operator that is reasonable in light of the relative benefits and burdens, including consideration of support (capital and operational) provided for Access Channel purposes, including equipment in use for Access Channels purposes at the time of interconnection. 7.! 5 Demographics Research. The Grantee shall promptly provide to the City copies of any viewership and/or demographics information it obtains from local area surveys concerning Access Channels and results and analyses of that portion of any subscriber surveys conducted by or at the request of the Grantee which deal with programming on Access Channels, provided, however, that with Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 66 respect to any such ratings and results and analyses, the Grantee shall redact any personally identifiable information and information concerning other programming services prior to providing such information to the City. The information provided under this subsection may be confidential and shall be subject to applicable law as provided for in Subsection 11.4. 7.16 Additional Cable Franchises. In the event that another franchise to offer cable service within the Franchise area is granted by the City of Port Angeles, Grantee's financial obligations under this Section shall be borne in part by such other franchise-holder, so that neither franchise holder is competitively advantaged or disadvantaged. To the extent within the City's control, this provision shall apply to all other similarly situated multicharmel video providers including without limitation open video system providers. If the City grants any franchise for or otherwise permits the provision of Cable Services in Grantee's Franchise Area on terms that, taken as a whole, are materially less burdensome than this Franchise, taking into account any difference in the number of subscribers served, the term of such Franchise, and all other circumstances affecting the relative burdens. SECTION 8. INSTITUTIONAL NETWORK 8.1 Provision of Institutional Network 8.1.1 As a condition to obtain the extended term described in Section 4 of this Franchise, Grantee shall furnish to the City, an activated Institutional Network (l-Net) capable of bi- directional delivery of broadband communications services between the sites listed in Exhibit "B', and bi- directional access by the City to the Grantee's subscriber network for utility uses, as described in Section 8.4.2, within nine (9) months after the effective date of the Franchise. 8.1.2 Fiber Optic Infrastructure. The I-Net transmission infrastructure shall physically consist of a minimum of 12 single mode fibers in the backbone ring and 4 single mode fibers per site to each site identified in Exhibit B. Each I-Net site connection shall be terminated at a point of demarcation in a Grantee standard termination panel, unless the City provides another means of termination, in which case the City shall provide all necessary termination equipment. At each termination location the City shall provide at City's cost, wall mount backboards and a power source for the basic termination, or such equipment as alternatively chosen by the City and approved by the Grantee. 8.1.3 Network Equipment. The Grantee shall furnish all optical and electronic network equipment located in the backbone ring and the interface equipment at each I-Net site, required to activate the I-Net. The equipment, locations and enclosures as required shall be established in a Grantee furnished network design, to be approved by the City. 8.2 I-Net Ownership 8.2.1 Grantee shall have full ownership of the I-Net fiber infrastructure and associated facilities up to and including the Grantee provided termination panels or up to the termination splices in City provided termination panels, at each I-Net site. 8.2.2 Grantee shall have full ownership and associated operation and maintenance responsibility for all network equipment up to the demarcation points at each I-Net site. 8.3 City's Exclusive Rights. 8.3.1 The City shall have an exclusive right of use of the I-Net for private network communications, which right cannot be revoked by Grantee, or successor companies, if any. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 67 8.3.2 In the event of any transfer, assignment or sale of any ownership interest whatsoever of the I-Net owned by the Grantee to any successor or other person, the Grantee shall notify the City and the prospective successor or person of the irrevocable rights of the City. In the event such notice is not given, the City may exercise all rights under law, including enjoining the prospective transfer of ownership. 8.3.3 In the event the Grantee is not capable of performing its obligations under this Franchise, or the Franchise is terminated by default or otherwise expires or is not renewed, the City shall have the right of first refusal to acquire the Cable System owned by the Grantee, at fair market value for a period of sixty (60) days following the date of termination, expiration or non renewal of the Franchise, less the City's contribution to the Grantee during the Franchise term to the I-Net, in accordance with 47 U.S.C. 547 to the extent it applies. 8.3.4 Notwithstanding anything else in this Franchise, this provision and Section 8 shall survive this Franchise and be binding on any successor under this Franchise or otherwise and on whomever has an ownership interest in the I-Net. 8.4 Use of Institutional Network 8.4.1 Unless a limit upon use is specified in this Section 8, the I-Net may be used for any communications, in any form, for any non-commercial (a) governmental purpose (proprietary or governmental); Co) educational purpose; (c) public purpose, or for use of the Access Channels on the subscriber Network. The I-Net may be linked to any other communications network used by the City, or any user by City (or an entity City's control), including to I-Net authorized the under the but not limited to the Northwest Open Access Network (NoaNet). Notwithstanding any other provision of the Franchise, Grantee agrees that authorized I-Net users may provide Internet services or access to Internet services to the public, schools and governmental entities over the I-Net. 8.4.2 Bi-Directional Usage. The Grantee shall allow the City bi-directional access to the subscriber network, at no charge, for meter reading and for utility load monitoring and control uses and such other uses mutually agreed upon by the parties. 8.4.3 Typical appropriate uses include, by way of example and not limitation: (1) Interconnecting local area networks (LAN) and wide area networks (WAN). (2) Link'mg libraries and providing terminals at library locations that allow members of the public to access library databases and other remote databases. (3) Transmitting live and stored instructional materials (whether in the form of data, video, or otherwise) to and from schools and to the public. (4)Providing kiosks where members of the public may access information. (5) Providing video conferencing among governmental and educational locations and to other locations for governmental and educational purposes such as economic development and distance learning. (6) Providing for remote permitting, meter reading, energy management, remote arraignment, and utility SCADA (Supervisory Control And Data Acquisition system). Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 68 8.5 Institutional Network Plans, Specifications, Cost Proposal and Construction 8.5.1 Procedure and Schedule. (1) The City shall provide the Grantee detailed site plans and network equipment location maps for the I-Net sites listed in Exhibit B within thirty (30) days from the effective date of this Franchise. (2) Grantee shall meet and confer with the City to clarify any of the I-Net user site and equipment location plans within ten (10) days of receiving these materials from the City. (3) Grantee shall provide the City Manager the network outside plant and equipment plans and specifications, and a sufficiently documented I-Net incremental cost proposal, arranged in accordance with the individual initial and future sites listed in Exhibit B, within one hundred and thirty (130) days after the effective date of this Franchise. (4) In preparing the plans, specifications and cost proposal, Grantee and the City agree to coordinate closely to ensure that the project requirements are met expeditiously. (5) Grantee's plans and specifications shall include but not be limited to fiber route plans, fiber count diagrams, fiber specifications, loss budget calculations, termination and enclosure details, and network equipment plans and specifications, all in sufficient detail to permit identification, correlation, verification and understanding of the components of Grantee's incremental cost proposal (6) The City Manager will review the plans, specifications and incremental cost proposal; provide written revisions or approval of the proposal within ten (10) days of receipt of Grantee's submittal. In the event the Grantee's proposal is not approved by the City Manager or the Grantee does not provide written acceptance of the City's revisions within one hundred fifty (150) days fi.om the effective date of this Franchise, the right to obtain the extended term is automatically denied. (7) In no event shall the City have any liability for any expenses the Grantee incurs in preparation of such plans, specifications or cost proposal until approval of such plans, specifications or cost proposal is given by the City Manager. (8)Grantee shall commence the I-Net construction within thirty (30) days from approval of the cost proposal by the City Manager. (9) Grantee shall provide the City with monthly updates indicating work completed, planned construction for next month, and projected time-line for project completion to meet the schedules herein. (10) The I-Net, including all splicing and testing, shall be fully complete, activated, and capable of operation within nine (9) months after the effective date of this Franchise. The City shall conduct a final inspection to verify completion. (11) Upon verification of completion by the City and delivery by Grantee to the City of As-Builts and a complete set of City approved fiber and equipment test results, the City will issue formal acceptance of the I-Net. 8.5.2 Grantee shall warrant the I-Net construction for a period of one year following City acceptance and be responsible to promptly correct, at its own expense, all defects and errors that may arise during the warranty period. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 69 8.5.3 Grantee shall include in its direct I-Net design a connection between Grantee's Headend and the City's Institutional Network control center in order to provide for video feeds and/or data that need to be routed to the Grantee subscriber network Access Channels. 8.5.4 Interconnection and Extensions. The City reserves the right to make interconnections and extensions or drops to additional sites within and outside of the city limits not listed in Exhibit "B" by itself or by the Grantee or other contractors, provided that all such interconnections to the Grantee's Network are performed only by the Grantee at competitive commercial rates. 8.6 Demand Maintenance of the I-Net. Grantee shall provide demand maintenance twenty-four hours a day, seven days a week and shall maintain the I-Net to operate at or above FCC standards at all times. Operating operating conditions, Grantee shall 8.6.1 Normal Conditions. Under normal respond to all outage reports within two hours and make necessary repairs within four hours of notification Monday through Friday, 6 a.m. to 10 p.m. through 6 a.m. on Saturday and Sunday. Under normal operating conditions, Grantee shall respond to degradation reports within twenty-four hours. 8.6.2 Emergency Conditions. In emergency conditions, such as a natural emergency resulting from a windstorm, Grantee will perform emergency repair work on the fiber and field equipment in the course of conducting its own emergency repair work on its fiber systems. All fibers at a given damage location shall be repaired concurrently without preference to function. 8.7 Routine Maintenance of I-Net. Routine maintenance on the fiber used exclusively by the City for I-Net use will be conducted on the same schedule as routine maintenance on Grantee's fiber systems. Any maintenance performed upon the I-Net shall be performed by Grantee with minimum seven (7) notice to the day prior City. 8.8 Payment for Use, Operation, and Maintenance of I-Net. An ongoing monthly fee may be charged by the Grantee for use, operation and maintenance of the I-Net. The fee shall cover Grantee's cost for operation and maintenance and shall be cost-based, calculated at a time-and-material rate as set by the FCC, or a prorated share, based upon each parties' relative number of fiber strands. The fee shall also give credit for any capital contribution made by the City or other I-Net user towards the cost of the I-Net. Such fee shall be applied as a credit to the Franchise fee due the City on the last calendar quarter payment for each year with sufficient documentation for such credits. 8.9 Administration, Maintenance and Management of I-Net Sites and Equipment. The City shall be responsible for the ongoing administration, maintenance and management of its I-Net sites and City owned equipment. All such maintenance conducted by the City shall be performed in a workmanlike manner to industry standards, and City-provided equipment shall comply in all any respects with applicable governmental codes, laws, ordinances or regulations and the National Electric Safety Code. 8.10 Cost. The cost to the City for the installation and construction of the I-Net shall not exceed the Grantee's Incremental Cost proposal approved in the design (as described herein) of the I-Net. There shall be no charge by the Grantee to the City or to any other authorized user for the use of the I-Net. The incremental cost may be paid by the City over a period of ten (10) years, applied as a pro rata credit by the Grantee to each quarterly payment due the City under Section 10. Any maintenance, interconnection or extension costs shall be applied as a credit by the Grantee to each quarterly payment due the City under Section 10, with sufficient documentation for such credits. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 70 8.11 Definition of Incremental, Direct and Indirect Costs 8.11.1 Incremental Costs. Incremental costs are that portion of the direct costs solely attributable to the cost of materials of the I-Net for which the City is responsible for payment under this Franchise. Incremental costs include only the direct costs that would not have been incurred but for the providing of such I-Net and do not include indirect costs. The parties agree the only significant items of incremental cost are the fiber strand, splicing, and network equipment modules or cards required to service the I-Net. The incremental cost of fiber strand shall not exceed $0.015 per linear foot per strand. 8.11.2 Direct Costs. In respect to the obligation of the City to pay for the cost of I-Net facilities to be provided by Grantee under this Franchise, the term "direct costs" includes only those costs specified in this Section 8 and no indirect costs. "direct costs" shall include: (1) Cost of design, materials and equipment necessary for construction; (2) payments made by Grantee to subcontractors in accordance with the requirements of the subcontracts; (3) wages and salaries and associated taxes and benefits of Grantee's employees performing work on the relevant portion of City-required facilities; (4) sales, excise, and other taxes paid by Grantee on materials, equipment, supplies and services chargeable to the relevant portion of the City-required facilities; (5) any labor force travel expenses directly chargeable to the work on the relevant portion of the City-required facilities; (6) cost of necessary licenses and permit fees, including rights-of-way construction permit fees and inspection fees, if any, related to the relevant portion of the City-required facilities, the City may review the applicability of such City permit fees, such as construction permit fees, construction impact fees, and construction inspection fees for the I-Net. (7) actual rental costs for the use of any necessary temporary facilities, or special machinery, equipment and hand tools used in the work on the relevant portion of the City-required facilities; (8) that portion directly attributable to this Franchise of premiums for insurahce and bonds related to the design and construction of the City-required facilities; (9) any work destroyed or damaged prior to completion, not compensated by insurance or otherwise, sustained by Grantee in connection with the work, provided the damage resulted from causes other than the fault or negligence of Grantee; (10) costs of removal of debris on the relevant portion of the City-required facilities; (11) costs incurred on the relevant portion of the City-required facilities, in taking action to prevent threatened damage, iniury, loss in case of an emergency affecting the safety of persons and property; (12) any additional sole attachment costs to Grantee; and (13) other costs incurred on the relevant portion of the City-required facilities in the performance of the work if, and to the extent, approved in advance in writing by the City. Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 71 I8.11.3 Indirect Costs. Indirect costs shall include: (1) Salaries and other compensation of Grantee's employees stationed at Grantee's offices other than the work site, except as may be expressly I included in Subsection 8.11.2 (3); (2) overhead and general expenses, except as may be expressly included in Subsection 8.12.2 (3); I Grantee's cost of and equity); and (3) capital (debt (4) costs due to the fault or negligence of Grantee, subcontractors, anyone directly or indirectly employed by any of them, or for those whose acts I any of them may be liable, including, but not limited to, costs for the correction of damage, defective or nonconforming work, disposal and replacement of materials and equipment incorrectly ordered or supplied, I in making good damage to property not forming a part of the work. 8.t 2 I-Net Costs not Franchise Fees. The parties agree that there shall be no charge for the I I-Net provided by Grantee, other than the charges specified in this Section 8. The parties agree that any costs to the Grantee associated with the I-Net provided by Grantee are not Franchise fees, and fall within one or more of the exceptions to 47 U.S.C. 542(g). I Guarantee. other provision of this Franchise, for work 8.t 3 Pricing Notwithstanding any any that the City is obligated to use the Grantee to perform under this Franchise, the Grantee guarantees that the amount it charges will be consistent with the price the City could obtain through a competitive I pricing process. ISECTION 9. CONSTRUCTION PROCEDURES 9.1 Cable System Construction Standards. All work involved in the construction, operation, i maintenance, repair, upgrade, and removal of the Cable System shall be performed in a safe, thorough and reliable manner using materials of good and durable quality, and so as to cause a minimum of interference with the Public Rights-of-Way. If, at any time, it is determined by the City or any other agency or authority of competent jurisdiction that any part of the Cable System, including, without I limitation, means used to distribute signals over or within the Cable System, is harmful to the health any or safety of any person, then the Grantee shall, at its own cost and expense, promptly correct all such conditions. i 9.2 Construction Work Regulation by City. All construction work done by Grantee in connection with the construction, expansion, reconstruction, maintenance or repair of its facilities in the I Public Rights-of-Way shall be subject to and governed by all lawful City requirements, including but not limited to Chapter 11.08 PAMC relating to excavation work within rights-of-way, Chapter 11.12 PAMC, Right-of-Way Use, Chapter 13.14 PAMC, Pole Attachments, and applicable federal and state rules and i regulations. 9.3 Work by Others. The City reserves the right to lay and permit to be laid, telecommunications, sewer, gas, water, electric and other pipe lines or cables and conduits, and to do and I permit to be done, underground and overhead work, and any attachment, restructuring or changes any in aerial facilities that may be deemed necessary or proper by the City Manager in, across, along, over or under any public street, alley or right-of-way occupied by Grantee, and to change any curb or sidewalk or I the grade of any street. In permitting such work to be done, the City shall not be liable to Grantee for any damages not directly caused by the willful misconduct or negligence of the City; provided, however, nothing herein shall relieve any other person or entity, including any contractor, subcontractor, or agent I from liability for damage to Grantee's Cable System. 8/31/01 i Metropolitan Communications Consultants Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 72 9.4 Construction by Abutting Owners. In the event that, during the term of this Franchise, the City authorizes abutting landowners to occupy space under the surface of any public street, alley, or right-of-way, such grant to an abutting landowner shall be subject to the rights herein granted to Grantee. In the event that the City shall close or abandon any public street, alley or right-of-way, which contains any portion of Grantee's Cable System, any conveyance of land contained in such closed or abandoned public street, alley, or right-of-way shall be subject to the rights herein granted. 9.5 Relocation or Removal of Facilities. 9.5.1 Grantee will obtain the City's approval before any relocation of Grantee's facilities in the Public Rights-of-Way. Such approval shall not be unreasonably withheld. 9.5.2 Within thirty (30) days following written notice from the City, the Grantee shall, at its own expense, temporarily or permanently remove, relocate, change or alter the position of any of its Cable System or other of its facilities that are within the Public Rights-of-Ways whenever the City shall have determined that such removal, relocation, change or alteration is reasonably necessary for: (1) the construction, repair, maintenance or installation of any City or other public improvement in or upon the Public Rights-of-Way; (2) the operations of the City or other governmental entity in or upon the Public Rights-of-Way. 9.5.3 Grantee and the City shall cooperate to the extent possible to assure continuity of service. If Grantee, after notice, fails or refuses to act, the City may remove or abate the same, at the sole cost and expense of Grantee, all without compensation or liability for damages to Grantee. 9.5.4 This Section is not intended to affect or alter any current contractual agreements that the Grantee may have concerning relocation of facilities or recovery of costs from private third parties from relocations requested by such private third parties. 9.6 Tree Trimming. Upon ten (10) days' written notice provided to the City, except in an emergency of imminent danger to persons or property, the Grantee may trim trees or other vegetation owned by the City or encroaching upon the public right-of-way to prevent their branches or leaves from touching or otherwise interfering with its wires. All trimming or pruning within environmentally sensitive areas shall be subject to applicable requirements of Chapter 15.20 PAMC "Environmentally Sensitive Areas Protection". All trimming or pruning shall be at the sole cost of the Grantee. The Grantee may contract for said trimming or pruning services with any person approved by the City. SECTION 10. COMPENSATION AND FINANCIAL PROVISIONS 10.1 General Compensation. Grantee agrees to pay to the City during each year of this Franchise, a franchise fee consisting of five percent (5%) of Grantee's Gross Revenue within the Franchise Area. 10.2 Calculation and Payment on a Quarterly Basis of Annual Franchise Fee 10.2.1 Grantee shall pay to the City for each quarter this Franchise remains in effect an amount equal to five percent (5%) of Gross Revenue, referred to as the "quarterly payment." Grantee shall make this payment by check or by wire transfer to the account designated by the City Manager by 5:00 P.M. on the forty-fifth (45) day following the close of the calendar quarter for which the quarterly payment is calculated, provided that necessary information in order to pay by wire transfer is or has been Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 73 I provided to Grantee at (10) days prior payment Any necessary prorations least ten to the date. shall made. I 10.2.2 To the extent consistent with federal law, the compensation set forth in this Section shall be exclusive of and in addition to all special assessments and taxes of whatever nature, including, but not limited to, ad valorem taxes, public utility taxes, use permits, inspection fees and I assessments for recovery of costs incurred by the City. 10.2.3 In the event any quarterly payment is made after 5:00 P.M. on the date due, I Grantee shall pay a late payment charge of the greater of (A) $100 or 03) simple interest at twelve percent (12%) annual percentage rate of the total amount past due. 10.2.4 Payment of money trader this Section shall not in any way limit or impair any of I the privileges or regulatory, condemnation, police powers or taxing rights City Angeles, of the of Port whether under this Franchise or otherwise. No acceptance of any payment shall be construed, as an accord that the amount paid is the correct amount, nor shall such acceptance be construed as a release of I any claim which the City may have for additional sums payable under the provisions of this Section. 10.2.5 Grantee shall file annually with the City Manager no later than one hundred I twenty (120) days after the end of the Grantee's fiscal year, a statement of Gross Revenue for that year within the Franchise Area pursuant to this Franchise. This statement shall present a detailed classification of Gross Revenue and uncollectible accounts for the year in a reasonable form prescribed by the City i Manager after consultation with Grantee. 10.2.6 Public Utility Tax. Grantee agrees to pay the City public utility tax on the Grantee's Gross Revenue in accordance with Exhibit E. I 10.2.7 City's Franchise Renewal Costs. Nothing in this Franchise shall be construed to limit the right of the City to require the Grantee to pay reasonable costs incurred by the City in I connection with the renewal of this franchise, whether pursuant to this Franchise or any other ordinance or regulation now in effect or hereafter adopted by the City. Within thirty (30) days of receipt of invoice from the City, the Grantee shall pay out-of-pocket costs incurred by the City during the franchise renewal I process, which costs shall be limited to consulting fees and expenses and the costs of publishing notices and ordinances. Such payment shall not be deductible from or considered to be in lieu of franchise fees or public utility taxes. I 10.2.8 Any transaction or arrangement which has the effect of circumventing payment of required franchise fees and/or evasion of payment of franchise fees by non-collection, non-reporting of Gross Revenue, collection of revenues by Affiliates, bartering, or any other means which evade the actual I collection of revenues Grantee for services delivered over the Cable System or businesses Grantee by pursues derived from the operation of the Cable System is prohibited. I 10.3 Bond and Letter of Credit 10.3.1 Grantee shall obtain a performance bond in favor of the City with a surety I company approved by the City Attorney, in the amount of twenty-five thousand ($25,000) dollars to secure Grantee's performance of its obligations and faithful adherence to all requirements of this Franchise. Grantee shall provide this performance bond at the time of filing the acceptance of this Franchise, as required by Subsection 3.2 herein. The City in accordance with Section 12.3.5 may draw I upon this bond. I I Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 74 10.3.2 Grantee shall also provide a letter of credit fi.om a financial institution approved by the City Manager in the amount of twenty-five thousand ($25,000) dollars. Said letter of credit is to guarantee payment of liquidated damages as set forth in Section 12.3. 10.3.3 The bond and letter of credit shall each contain the following endorsement: "It is hereby understood and agreed that this bond (or letter of credit) may not bo canceled by the surety nor any intention not to renew be exercised by the surety until thirty (30) days after receipt by the City Attorney, by certified mail, of written notice of such intention to cancel or not to renew". 10.3.4 The rights reserved to the City with respect to the bond and letter of credit are in addition to all other rights of the City, whether reserved by this Franchise ordinance or authorized by law; and no action, proceeding or exercise of a right with respect to such bond or letter of credit shall affect the City's rights to demand full and faithful performance under this Franchise or limit Grantee's liability for damages. 10.4 Insurance 10.4.1 Subject to Grantee's right to maintain reasonable deductibles in such amounts as are approved by the City Manager, Grantee shall obtain and maintain in full force and effect for the duration of this Franchise, at Grantee's sole expense, insurance coverage in the following type and minimum amounts: (1) Grantee shall obtain and maintain in full force and effect throughout the term of this Franchise insurance in the same amounts as are required in the City's Telecommur~cations Ordinance, PAMC Chapter 11.14.120E. (2) Grantee shall obtain coverage for programming on channels that are directly or indirectly controlled by Grantee for libel and slander and copyright violations with a combined single limit of $10,000,000 per occurrence or its equivalent 10.4.2 The Grantee shall furnish a certificate of insurance as part of its acceptance of this Franchise. 10.5 Indemnity 10.5.1 Grantee shall defend, indemnify, and hold City harmless from and against all damages, costs, losses or expenses for the repair, replacement, or restoration of City's property, equipment, materials, structures and facilities which are damaged, destroyed or found to bo defective as a result of Grantee's negligence, willful misconduct, or strict liability. 10.5.2 Grantee, for itself and its agents, employees, subcontractors, and the agents and employees of said subcontractors, shall defend, indemnify, and hold the City, its successors, assigns, officers, employees and elected officials harmless from and against any and all claims, demands, suits, causes of action, and judgments for: (A) damage to or toss of the property of any person (including, but not limited to Grantee, its agents, officers, employees and subcontractors, City's agents, officers and employees, and third parties); and/or (B) death, bodily injury, illness, disease, worker's compensation, loss of services, or loss of income or wages to any person (including but not limited to the agents, officers and employees of Grantee, Grantee's subcontractors and City, and third parties), arising out of, incident to, concerning, or resulting fi.om the negligence, willful misconduct or strict liability of Grantee, its agents, employees, and/or subcontractors, in the performance of all activities and services pursuant to this Franchise, no matter how, or to whom, such loss may occur. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for [he Cable Franchise Renewal page 75 10.5.3 In the event that such damage, claim or loss is found by a court of any competent jurisdiction to be caused by the concurrent fault of beth Grantee and City, then Grantee shall indemnify City to the full proportionate extent that Grantee is determined to be at fault. It is the intention of the parties, and Grantee expressly agrees, that the provisions of this Section shall not exclude claims, damages, and losses caused in part, but not wholly, by the negligence of City, even if the City is more negligent than Grantee. 10.5.4 The terms of each contract awarded by Grantee for activities pursuant to this Franchise shall contain indemnity provisions whereby the contractor shall indemnify City to the same extent as described above. 10.5.5 City shall give Grantee prompt written notice of any claims or suits. Grantee shall have the right to investigate, defend and compromise same to the extent of its own interests. 10.6 Audits 10.6.1 The City reserves the right to conduct financial audits, not more frequently than once every other year, relating to matters arising under this Franchise or to retain an independent certified public accountant to conduct such audits. In the event an audit results in a determination that Grantee has underpaid any franchise fee or tax obligation arising under this Franchise by five percent (5%) or more, or materially misstated financial information in any report furnished to the City, Grantee shall reimburse the City for the costs of the audit. 10.6.2 Grantee shall pay to the City any amounts any audit indicates are owed which following an independent review of such audit. 10.6.3 The City reserves the right to perform other audits for franchise compliance purposes. SECTION 11. REPORTING REQUIREMENTS 11.1 Reports. 11.1.1 Grantee shall provide all reports as required in accordance with Exhibit D. 11.1.2 The City Manager at time, make inquiries pertaining to Grantee's may, any performance of the terms and conditions of this Franchise. Grantee shall respond to such inquiries on a timely basis. 11.1.3 Grantee shall report to the City within the first year of its Franchise term, the results of its efforts to address areas of subscriber concern, disclosed by the City's 2001 needs and interests ascertainment, including but not limited to rates, programming and customer relations. Grantee shall implement a public relations program to address these areas of subscriber complaint and the City reserves the right to review and comment on the program at reasonable intervals. 11.1.4 Grantee shall report to the City such other information relating to this Franchise as the City Manager may reasonably require to demonstrate compliance with the Franchise and shall comply with the City's reasonable determination of forms for reports, the time for reports, the frequency with which any reports are to be made, and if reports are to be made certified. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 76 11.2 Records 11.2.1 Grantee shall keep complete and accurate books of accounts and records of its business and operations pertaining to this Franchise, in accordance with generally accepted accounting principles. 11.2.2 After consultation with Grantee, the City Manager may reasonably require the keeping of additional records or accounts which are reasonably necessary for purposes of identifying, accounting for, and reporting Gross Revenue and uncollectibles for purposes of the compensation required under Section 10. To the extent practicable, Grantee shall keep its books of accounts and records in such a way that identification of revenues by type within the Franchise Area is straightforward. 11.2.3 In order to verify the Gross Revenue received by the Grantee which in accordance with Section 10 is subject to a franchise fee and public utility tax, Grantee agrees that on the same date that payment is made, it will file with the City Manager a certified copy of a report acceptable to the City Manager in sufficient detail to itemize revenues which comprise Gross Revenue. Without limitation on the discretion of the City Manager to require additional information, this report shall: (1) Incorporate a statement reflecting the market value of all "trade" revenue (revenues from exchanges or barter which do not involve monetary compensation); (2) Show all local, regional and national advertising revenue allocated to the operation of the Cable System in the Franchise Area in accordance with the Allocation Percentage. (3) Provide the total number of commercial service accounts by types (e.g., business/multi-family) served by the Grantee using its Cable System, including a broad description of the Cable Services provided. 11.2.4 Upon the City Manager's thirty (30) day written request, Grantee shall make available to the City, in Port Angeles during regular business hours, its books and records to examine, audit, review and/or obtain copies of the papers, books, accounts, documents, maps, plans and other records of Grantee pertaining to all revenue derived by Grantee and Affiliates from the operation of the Cable System to provide Cable Service, in order to verify the accuracy of payments under Section 10. Grantee shall fully cooperate in making available its records and otherwise assisting in these activities. The City shall extend the time for the provision of such information upon a reasonable showing by Grantee that such extension is justified. 11.3 Filings 11.3.1 FCC Filings. The Grantee shall, on a quarterly basis, mail or deliver a list of all filings related to this Franchise it makes with state and federal agencies to the City Manager. Consistent with Section 11.2.4, the City shall have the right to inspect and copy any such filings. 11.3.2 Promptly and timely, Grantee shall provide the City upon request with notices of all petitions, applications, communications and reports submitted to or received from Grantee or Affiliates and the FCC, Securities and Exchange Commission, and the appropriate state utility commission, if any, or their successor agencies, relating to any matter affecting the use of Franchise Area, Public Rights-of-Way, and/or the operation of a Cable System authorized pursuant to this Franchise. Consistent with Section 11.2.4, the City shall have the right to inspect and copy any such documentation. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 77 11.4 Confidentiality City confidentiality information of Information. The will maintain of provided by Grantee to the extent permitted by law when Grantee has notified the City of the confidential nature of the information. SECTION !2. REGULATORY PROVISIONS 12.1 Transfer of Ownership and Control 12.1.1 Neither this Franchise, or more than fifteen percent (15%) of the Cable System, nor any of the City's I-Net exclusive rights, held by Grantee for use under this Franchise, which are in the Public Rights-of-Way, nor any rights or privileges of Grantee under this Franchise, either separately or collectively, shall be sold, resold, assigned, transferred or conveyed by Grantee to any other person, firm, Affiliate or entity, without the prior written consent of the City. Such approval shall not be unreasonably withheld. 12.1.2 Should the Grantee sell, assign, transfer, convey or otherwise dispose of any of its rights or interests under this Franchise, including Grantee's Cable System or capacity on its Cable System, or attempt to do so, without the City's prior consent, the City may revoke this Franchise for default, in which event all rights and interest of the Grantee shall cease. Any transfer in violation of this Section shall be null and void and unenforceable. 12.1.3 Any change of Control of Grantee shall constitute a transfer under this Section. There shall be a presumption of a change of Control of Grantee upon a change of 10% or greater in the ownership of Grantee. A mortgage or other pledge of assets to a bank or lending institution in a bona fide lending transaction shall not be considered an assignment. The Grantee agrees to promptly pay to the City a sum of money sufficient to reimburse it for all reasonable expenses incurred by the City in review of such an assignment or transfer as provided for in this Section. 12.2 Forfeiture and Termination. 12.2.1 In addition to all other rights and powers retained by the City under this Franchise or otherwise, the City reserves the right to forfeit and terminate this Franchise and all rights and privileges of Grantee hereunder in the event of a material breach of its terms and conditions, subject to reasonable notice and opportunity to cure, as provided in Section 12.3. 12.2.2 The foregoing shall not constitute a material breach if the violation occurs without the fault of Grantee result of circumstances its control. Grantee shall beyond or OCCURS a not excused from performance of any of its obligations under this Franchise by mere economic hardship, nor misfeasance or malfeasance of its directors, officers or employees. 12.2.3 A termination shall be declared only by a written decision of the City Council, by ordinance, resolution or motion, after an appropriate public proceeding before the City Council, which shall accord the Grantee due process and full opportunity to be heard and to respond to any notice of grounds to terminate. All notice requirements shall be met by providing the Grantee at least fifteen (15) days prior written notice of any public hearing concerning the proposed termination of this Franchise. Such notice shall state the grounds for termination alleged by City. 12.2.4 The City Council, upon finding the existence of grounds to terminate, may either declare this Franchise terminated or excuse such grounds upon a showing by the Grantee of mitigating circumstances for the existence of such good or cause grounds. 12.2.5 Neither Grantee's acceptance of this Franchise, Grantee's appearance before the City Council concerning proposed termination of this Franchise, nor any action taken by the City Council Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 78 as a result of any such process, including a declaration of termination or a finding of grounds to terminate, shall be construed to waive or otherwise affect the Grantee's right to seek judicial determination of the rights and responsibilities of the parties under this Franchise. 12.3 Violations 12.3.1 If the City has reason to believe that Grantee is in violation of this Franchise, the City Manager shall notify Grantee in writing of the violation setting forth the nature of such violation. Within thirty (30) days of receipt of such notice, or such longer period specified by the City Manager, Grantee shall respond in writing that the violation has been cured or provide a cure plan or schedule that the City Manager or provide explanations in refutation or excuse with documentation to support that an alleged violation did not occur. 12.3.2 Notwithstanding Subsection 12.3.1 above, Grantee shall be allowed thirty (30) days to cure violations after written notice is received from the City, by taking appropriate steps to comply with the terms of this Franchise and any other applicable lawful regulations. If the nature of the violation is such that it cannot be fully cured within 30 days due to circumstances not under Grantee's control, the period of time in which Grantee must cure the violation shall be extended by the City Manager in writing for such additional time reasonably necessary to complete the cure, provided that (1) Grantee shall have promptly commenced to cure, and (2) Grantee is diligently pursuing its efforts to cure in the City Manager's reasonable judgment. 12.3.3 If the violation has not been cured within the time allowed under Subsection 12.3.2 above, then Grantee shall be liable for liquidated damages for the following violations: (1) Failure to provide and maintain requested Cable Service to any household within the Franchise Area as required by this Franchise: fifteen cents ($0.15) per affected household, for each day that such failure continues (not to exceed one thousand ($1000) dollars per day). (2) Failure to promptly provide bonds, letters of credit, insurance or reports, records, filings or other data to the City, in accordance with Section 10, and Section 11: two hundred and fifty ($250) dollars per day, for each day such failure continues. (3) Failure to provide resources and an Access Channel in strict compliance with Sections 6 and 7 hereof: three hundred ($300) dollars per day for each day such failure continues. (4) Failure to comply with lawful City requirements concerning construction in the Public Rights-of-Way: two hundred ($200) dollars per day for each day such failure continues. (5) Failure to substantially comply with a material requirement of the Subscriber Service Standards: two hundred ($200) dollars per day for each day such failure continues. (6) Failure to substantially comply with technical and performance specifications upon completion and activation of the institutional network: three hundred dollars ($300) per day for each day such failure (7) If the Grantee accepts the extended term described in Subsection 4.2.2, failure to comply with Subsection 4.2.2: five hundred ($500.00) dollars per day. 12.3.4 Grantee agrees that each of the foregoing failures shall result in injuries to the City and its citizens and institutions, the compensation for which would be difficult to ascertain and to prove. Accordingly Grantee agrees that the foregoing amounts are liquidated damages, not a penalty or Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 79 I forfeiture, and are within one or more exclusions to the term "franchise fee" provided by federal law at 47 U.S.C. 542 (g) (2) (A-D) and therefore in no way part of the compensation paid to the City pursuant to Section 10 herein. 12.3.5 If Grantee fails to make full and complete payments as required by this Franchise within ten (10) days after receipt of written notice &om the City Manager, then the City Manager may I immediately withdraw without further notice to Grantee the amount thereof fi.om the letter of credit maintained in accordance with Section 9.3, except as subject to Section 12.3.6 below. i 12.3.6 Notwithstanding any other provision of this Franchise, upon Grantee's request, Grantee shall be afforded an opportunity to show that a violation has not occurred, and the City Manager may not act under Section 12.3.5 until the administrative hearing, as provided for herein, is concluded and a determination has been made as to whether a violation has occurred. This opportunity shall consist of an administrative hearing upon thirty (30) days otice before an ~mpartial heanng examiner io~ntly designated by the City Attorney and Grantee within thirty (30) days of Grantee's request. I 12.3.7 If as a result of the administrative hearing, the hearing examiner determines that a violation has not occurred, the City shall pay all of the expenses related to the administrative hearing. If a violation has occurred, Grantee shall pay the expenses. After the conclusion of the administrative i hearing either party may seek any and all remedies that it may have at law. 12.3.8 Upon evidence being received by the City that violations of this Franchise or any i ordinances lawfully regulating Grantee in the construction and operation of its Cable System have occurred, or continue to occur after the thirty (30) day period, and any additional time necessary to cure, as allowed under Sectionl2.3.2, the City may cause an investigation to be made. If the City finds that such a violation continues to exist or has occurred, then the City or Grantee may take any action authorized by I law, including forfeiture of this Franchise and a suit in court to compel compliance. In any such proceeding the non-prevailing party shall be required to pay the reasonable expenses in~ by the prevailing party in such suit and all damages and costs (including attorney fees), but Grantee may be I allowed, either by the court in the judgment of forfeiture or by order of the City Council, a reasonable time thereafter, as fixed by such judgment or order, to correct the default and pay such expenses, damages and costs as it may be adjudged to pay, and if Grantee does so correct and so pay within such i time, forfeiture shall not become effective nor be enforced. 12.3.9 Failure by the City or the Grantee to enforce any rights under this Franchise does i not constitute a waiver of such rights. t 2.4 Governing taw. This Franchise is passed subject to the provisions of the Constitution and laws of the United States of America and the State of Washington and the ordinances of the City of Port I Angeles. 12.5 Force Majeure. The term "Force Majeure" shall mean delays due to acts of God, war, I civil disturbances, fire, unavoidable casualty, construction delays due to weather, failure of supplier(s), or other similar causes beyond the control of Grantee. The time within which Grantee shall be required to perform any act under the Franchise shall be extended by a period of time equal to the number of days i performance is delayed due to a Force Majeure. Grantee shall not be subject to any penalty hereunder because of acts or failure to act due to Force Majeure. ! 2.6 Severabi[ity And Preemption. I 12.6.1 Except as provided in 12.6.2 below, if any section, subsection, sentence, clause, phrase, term, provision, condition, covenant or portion of this Franchise is for any reason held invalid or I unenforceable by any court of competent jurisdiction, or superseded by state or federal legislation, rules, i Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 80 regulations or decision, the remainder of this Franchise shall not be affected thereby but shall be deemed as a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions hereof, and each remaining section, subsection sentence, clause, phrase, provision, condition, covenant and portion of this Franchise shall be valid and enforceable to the fullest extent permitted by law. 12.6.2 If any material provision of this Franchise is for any reason held invalid or unenforceable by any court of competent jurisdiction, or superseded by state or federal law, rules, regulations or decision so that the intent of these provisions is frustrated, the parties agree to immediately negotiate a replacement provision to fulfill the purpose and intent of the superseded provisions consistent with applicable law. 12.6.3 In the event that federal or state laws, rules or regulations preempt a provision or limit the enforceability of a provision of this Franchise, then the provision shall be read to be preempted to the extent and for the time required by law. In the event such federal or state law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the provision hereof that had been preempted is no longer preempted, such provision shall thereupon return to full force and effect, and shall thereafter be binding on the parties hereto, without the requirement of further action on the part of the City, and any amendments to this Franchise negotiated pursuant to Subsection 12.6.2 as a result of such provision being preempted shall no longer be of any force or effect. SECTION 13. REOPENERS 13.1 Grounds. The occurrence of any of the following shall be grounds for the City or Grantee to reopen the Franchise as further provided in this Section: 13.1.1 Any event that gives rise to a right to terminate the Franchise under any other provision, to be exercised only by the City. 13.1.2 Any court or quasijudicial action that invalidates or substantially negates the effect of any material provision of this Franchise. 13.1.3 Any state or federal legislation that invalidates or substantially negates the effect of any material provision of this Franchise, said grounds to be exercised only by the City. 13.1.4 Any proposed or actual use of the cable system by Grantee that is not expressly provided for in this Franchise and that invalidates or substantially negates the effect of any material provision of this Franchise. 13.1.5 Any upgrade required by Section 5.6, where Grantee asserts that the required upgrade or implementation is not technically or commercially feasible. 13.1.6 Any ascertainment of present or future cable related community needs and interests that results in a determination that specific provisions of this Franchise no longer reflect such community needs and interests, to be exercised only by the City. 13.2 Reopener Procedure 13.2.1 The City or Grantee shall make a determination that grounds exist to implement the reopener provisions of this Section and shall formally notify the other party in writing and in reasonable detail of that determination, the grounds for it, and the proposed modification deemed necessary to address the event giving rise to the reopener; provided, however, if the grounds asserted are Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 81 within those described in Section 13.1.5, the City shall first schedule a public hearing, with adequate notice to the public and Grantee, to address the benefits, expense, and potential costs to subscribers, of implementing such modifications. 13.2.2 For a period of 90 days following Grantee's receipt of the notice, Grantee and the City shall seek to negotiate an amendment to the Franchise reflecting the grounds identified in notice of reopener in light of the cable related community needs and interests and the cost of meeting those needs and interests. 13.2.3 If Grantee and the City are unable to reach agreement within the 90-day period, the matter shall be submitted to arbitration. 13.3 Criteria Governing Arbitration Decision 13.3.1 The arbitrator(s) shall decide whether either party has established a right to a modification of the Franchise based upon the grounds identified in the reopener notice and in light of the evidence presented to them and applicable legal authority, and if so, shall prescribe the modification, 13.3.2 The arbitrator(s) shall make the determination of wbether a right to a modification exists, and the nature of any such modification, based on the following criteria: (1) Whether the particular modification is needed to meet the present and futtrre cable related community needs and interests, as determined by the City, taking into account the cost of meeting those needs and interests during the term of this Franchise and any proposed extension; provided, in the case of an arbitration involving an upgrade pursuant to Section 5.Zl(1), the arbitrator(s) shall be linfited to determining whether the requirement of Section 5.7.1(1) has been met by the City. (2) Whether the particular modification is within the lawful power of the City. (3) Whether the party having the burden of proof has met its burden. SECTION 14. MISCELLANEOUS PROVISIONS 14.1 Notices 14.1.1 All notices from Grantee to the City pursuant to this Franchise shall be directed to the City Manager at City HaIL 321 East Fifth Street, P.O. Box llS0, Port Angeles, WA 99362-0216, or to such officer as designated by the City Manager. 14.1.2 All notices to Grantee pursuant to this Franchise shall be to such local corporate officer within the City of Port Angeles designated by Grantee in writing. Grantee shall maintain within the City of Port Angeles throughout the term of this Franchise an address for service of notices by mail. Grantee shall also maintain within the City of Port Angeles a local telephone number operational during normal business hours for the conduct of matters related to this Franchise. Any change in address or telephone number shall be furnished to the City ten (10) days prior to the change. 14.2 Entire Agreement. This Franchise contains all of the agreements of the parties with respect to any matter covered or mentioned in this Franchise and no prior or contemporaneous agreements or understandings pertaining to any such matters shall be effective for any purpose. No provision of this Franchise may be amended or added to except by agreement in writing signed by both of the parties. Metropolitan Communications Consu]tants ~J3 l/O1 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 82 14.3 Previous Rights Abandoned. This Franchise is in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by Grantee or any successor pertaining to the construction, operation, modification or maintenance of a Cable System in the City. The acceptance of this Franchise shall operate between Grantee and the City, as an abandonment of any and all such rights, privileges, powers, immunities, and authorities within the City. Upon the effective date of this Franchise, all construction, operation, modification or maintenance by the Grantee of any Cable System in the City shall be under this Franchise and not under any other right, privilege, power, immunity, or authority. 14.4 Repeal of Prior Ordinances. Cable Franchise Ordinance No. 2470 and the consent to transfer Resolution No. 27-88 are hereby repealed and are no longer in force and effect. 14.5 Attorney's Fees. If any suit or other action is instituted in connection with any controversy arising under this Franchise, the prevailing party shall be entitled to recover all of its costs and expenses including such sum as the Court may judge reasonable for attorney's fees, including fees upon appeal of any judgment or ruling. 14.6 Time is of the Essence. Time is of the essence of this Franchise and each and all of its provisions in which performance is a factor. 14.7 Remedies are Cumulative. Any remedies provided for under the terms of this Franchise are not intended to be exclusive but shall be cumulative with all other remedies available to the City at law, in equity, or by statute. 14.8 Neither Grantee nor City a Common Carrier. Nothing in this Franchise or by any use of the Access Channels hereof shall be deemed by City or the Grantee to subject the City or Grantee's operations, Cable System, the Institutional Network, or the use of the Access Channels provided by Grantee under authorization of this Franchise, to regulation as a common carrier within the meaning of applicable state or federal law. In the event a state or federal agency or court deem them such, the City will discontinue or alter its use in such a manner that would be consistent with the intent of the parties that there is no common carrier service or telecommunication services, as defined in state law that would require further authorization by the Grantee or the City. 14.9 Equal Protection. In the event the City enters into a franchise, permit, license, authorization, or other agreement of any kind with any other person or entity other than the Grantee to enter into the City's streets and public rights-of-way for the purpose of constructing or operating a Cable System or providing Cable Service to any part of the Service Area, the material provisions thereof shall be reasonably comparable to those contained herein, in order that one operator not be granted an unfair competitive advantage over another, and to provide all parties equal protection under the law. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 83 Section 2 -- Effective Date. This Franchise shall take effect upon adoption by ordinance of the City Council, subject to Grantee's acceptance of Franchise and payment of the City's direct expenses in accordance with Section 3.2 herein. PASSED AND APPROVED ON Date: ,2001. Mayor APPROVED AS TO FORM; ATTEST: City Attorney City Clerk EXHIBITS Exhibit A - Acceptance of Franchise Exhibit B - Grantee Furnished Connections to Community Facilities Exhibit C - Subscriber Service Standards Exhibit D - Subscriber Service Reporting Requirements Exhibit E ~- Public Utility Tax Ordinance Amendment Exhibit F - Northland Fiber Upgrade Plan and Node Service Areas Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 84 I EXHIBIT A - ACCEPTANCE OF FRANCHISE I In accordance with Section 3.2, the Grantee hereby submits its acceptance of the Franchise and all terms I and conditions thereof to the City at the Clerk's Office. The Grantee hereby certifies that the undersigned is a duly authorized officer of the Grantee with the authority to execute acceptance of this Franchise. The Grantee hereby accepts (select only one) the [] basic term [] extended term. I Attached herewith are the following documents in accordance with the requirements of the Franchise: I 1. A bond in accordance with Section 10.3. 2. A letter of credit in accordance with Section 10.3. 3. A certificate of insurance in accordance with Section 10.4. I 4. Payment of the City's expenses in accordance with Section 3.2. ACCEPTED BY NORTHLAND COMMUNICATIONS CORPORATION I Date: ,2001. I Name and title I I I I I I I I I Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 85 EXHIBIT B - GRANTEE FURNISHED CONNECTIONS TO COMMUNITY FACILITIES CATV dro~ Fiber Drops A. City Municipal Facilities Addross initial htum initial 1. City Ha)l (includes sites below) 321 ~ 5th Street 1 PA Police Depar[ment t led Vem Bud:on Community Center 1 ind 2. Police Oept Radio Repeater 1022 S ESt 1 1 3. Police Dept Radio Repeater Ediz Hook 4. RreStation 102 E5thSt 1 5. Seoior Center 328 E 7th St t 6. Uncoln Park Fairgrounds 1 t 7. Veterans Memodal 215 $ Lincoln 1 1 8. Carnegie Ubrary 205 $ Lincoln St t 9. Fine Arts Center 1203 E Lauddsen 1 1 10, William Shore Pool 225 E 5th St 1 1 11. CMc Rek~ 307 $ Rece St 1 12. Crown Rark 1901 W4thSt 1 t 13, Ericksoo Park 302 S Race St 1 1 14. Uoo's Park 600 Whidbey 1 1 15. Rains Park 915 E8thSt 1 1 16, Shane Park 613 SGSt t I 17, Volunteer Park 16th and L 1 1 18, Harbor View Pank Ediz Hook 19. Sail and Paddle Ediz Hook 1 1 20. Woivertoo Park A/B ! 1/10 ALLEY I 2.1, Papd Firing Range 3507 W tBth 2.2. Bmx T~ck 152.1 WLauridsen 1 t 23, Parks Maintenance 16th St F St 24. Ceme(e~/-Offtce 312.7 W tBthSt I 1 CATV drops Fiber Drops J. (ity Utility Systems Facilities im~itial futura iaitial futm~ 1. Coq)Yard 1703 SBSt 1 1 2. Ught Op~ 240 W Front ! 1 3. Landlil[ 3501 W t$th 1 4. Wastewater Trealmeot Plant 1509 Columbia 1 1 5. Water Treatment Plant future 1 1 6, Pump Station #1 5th St & N St 7, Pump Star, on #2 1/;' Nley & Cherty 1 8. Pump Station #3 Marine & Hitl 1 9. Pump Station #4 313 blamine Drive tO. PumpStatk~l #5 219 ETndSt 1 11. Pump Station #6 933 Church St 12. Pump Station #7 W 19th St 1 13. Pump Station #8 H St & 14th 1 14. Pump Station #9 Del Guzzi Dr. 1 15. Pump Station #10 1829,5 W 12thst i6. Mill Creek Pump Station 600 ~rmewcrest 17. Ek,~ha Emergency Valve 2700 S Milwankie Dr 1 18. McDougalBooster Pump 3500 McDougal 19. Spruce Booster Station 1000 Spruce St 1 20. Scrivner Pump 300 E Soivner 1 21. Ekvha Pump Sta6on Ranney Wei( 22. ESt. Reservoir 1016 1 2.3. Jones St. Reservoir 12.00 E 9th St 24, Peabody Heights Reservoir 600 V',~:rest 1 25. Black Diamond Reservoir B~ack Diamond Rd 26. Mill Creek Reservoir Old Mill Rd 1 Metropolitan Communications Consultants 8/31/01 m Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 86 (ATV drol~ Fiber Drops I B. City Utility Systems Facilities (continued) initial ht~re initial future 27. PUD InterUe Baker St. 1 ~m 28. PUD Intertle Monroe St. I 29. A Street Substation 1616 SASt 1 30. FStreetSubstatioe 1604 SFSt 1 31. I Street Substation 1538 W 7th St 1 · 32. College Substation 1306 E ParkSt 1 33. ValleySubstation 206 S ValleySt 1 34. Washington Substation 224 SWashin§ton 1 35. Laurel Substation 110 E 14th St 1 36. Peab~:ly Substation 2803 S Peabody 1 37. BPA PASubstation 1400 E ParkAve. 1 1. Tt FrontSt LaurelSt · 1st St Laurel 5t Front 5t Oak 5t 1st St Oak St 5th St Race St 8th St Race St Lauridsen 81vd Race St 8. T8 5th St Peabody St m 9. T9 8th St Peabody St 10. TIO 8thSt CherrySt 11. Tll (WSDOT) Hwy 101 DelGuzziDr 12. T12 (WSDOT) Hwy 101 Golf Course Rd m 13. T13 (WSDOT) lslSt EnnisSt 14. T14 (WSDOT) FrontSt EnnisSt 15. T15(WSDOT) 1st St Race St 16. T16 (WSDOT) Front St Race St· 17. T17 (WSDOT) lstSt PeabodySt 18. T18 (WSDOT) lstSt Uncoln St 19. T19 (WSDOT) Front St Lincoln St · 20. T20 (WSDOT) 5th St Lincoln St 21. T21 (WSDOT) 8thSt Unco~nSt 22. T22 (WSDOT) 14thSt LincolnSt 23. T23 (WSDOT) Madne Dr Tumwater Routem CATV drops J Fiber Drops D. Port of Port Angeles Addms initial future initial leture m 1. PABH 832 Boat Haven Drive 1 1 2. PortOfPA 115 E Railroad Ave 1 1 3. PortOfPA llB SValleySt 1 1· 4. Marine Terminal 202 N Cedar St 1 1 5. Port Of PA 2007 S 0 St 1 1 6. Pont Of PA 338 W 1st St 1 1 7. PortOfPA 190i WLauridsenBIvd 1 1 8. Pod( Of PA 2138 W Lautidsen Bk, d 1 1 m 9. Pod( Of PA 220~ W Lauridsen Bk;d 1 1 10. Fairchild IntemationaiAirport 1 1 11. Industrial Park East 1 1· m 12. Industrial ParkWest Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 87 CATV drops Fiber Drops E. Clallam County Address initial future initial future 1. Health And Human Services 223 E 4th St 1 1 2. Sheriff 223 E 4th St 1 1 3. Dispatch911 321 ESthSt 1 1 4. Child Support Enforcement 421 E 5th Ave 1 1 5. Fairgrounds 1608 W 18th St 1 1 6. Juvenile Servlces 1912 W 18th 1 1 7. Drug Task Force 240 W Front St 1 1 8. District II Court 502 E Division 1 9. Naintenance Shops 1033 W Lauddsen Bird 1 1 CATV dro~ Fiber Drops F. Regional Address initial f~t~a initial 1. Clailam County PUD. 1936 W 18th St I 1 2. Ciailom County PUD. 2431 EHwy 101 1 1 3. Clallam Transit 8~0 W Lauridsan Bird 1 4. Para Transit ;)12 NGaiesSt 1 1 5. Housing Authority 2603 S Frands St 1 1 6. North Olympic Youth Centers 535 E 1st St 1 1 7. LowerEIwhaKlallamTdbe 1026 ElstStSuite2 1 1 8. Lower Elwha KlalJam Tdbe 2851 Lower Elwha Rd 1 1 9. Lower Elwha Kla[lam Tribe 51 Hatchery Rd 1 1 I0. Lower Elwha Klallam Tdbe 463 Stratton Rd 1 1 11. Lower Elwha I(Jallam Tdbe 22 Kwitsen Dr I 1 1;). Lower Elwha Klallam Tribe 243511 Hwy 101 W 1 1 CATV drops Fiber Drops G. State o! W~shington Address initial future initial futme 1. Children & Family Services (includes site below) 201 W 1st St 1 1 Community Services Office 201 W 1 st St 2. Juvenile Rehabilitation (indudea sites below) 228 W 1st St, Suite V 1 1 Dept. of Community Corrections 228 W 1 st St 1 Drivers Ucense Examining Office 228 W 1st St 1 Developmental Disabilities 228 W 1st St, Suite F 1 3. Homc&CommunityServices 235 W lst$t 1 1 4. Dept. of Revenue 734 E lstSt, SeiteB 1 1 5. V(x:ationaiRehabilitation 1026 El$t$t, Suite2 1 1 6. Dept. of Revenue 1601 E Front St 1 1 7. Dept. of Labor and Industries 1605 E Front St I 1 8. Dept. of Highway Maintenance 1707 S C St 1 Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 88 CATV drops I fl. U.S. Government Address 1. Sodal Security Admin. (includes site below) t 38 W 1st St Olymple Coast National Marine Sanctuary 138 W 1st St 2. Natural Resources Consorvation Service 113 E 3rd St, Room 2B 3. PostaIService 424 E ~stSt 4. Navy RdcnJiting Station 721 E 1st St · 5. Air Force Recruiting (lt~dudes site belo~v) 1520 5 Critoqlleld Rd Ovil Air Patrol 15,20 S Cfitchfield Rd 6. Marines Recruiting Station 701 E Front St · 3. Army Recruiting Station 703 E Front St 7. Environmental Health & Const. Engineering 1601 E Front St 8. Olympic National Park 600 E Park 9. Coast Guard (~ndudes site below) 100 W Ediz Hook Rd · NL~/ES Electronic Systems Evaluation Fadlity 100 W Ediz Hook Rd I. Port Angeles Educational Address I t. PeniflsulaCollege 1502 LauedsonBIvd 2. Hamilton School 1822 W 7th St 3. The Choice 924 W 9th St 4. Stevens Middle School 1139 W 14th St 5. CentralSeMces 216 E4thSt 6. Children's Montessofi School 708 E 8th St 7. ieffersonSchooI 218 E 121hSt 8. Libra~ Processing Center 304 EParkAve 9. P~L High School 304 E Pa~ Ave 10. Fairvi~ School 166 Lake Farm Rd I t 1. Honroe School 102 Monroe Rd 12. Roosevelt Middle Schocd 106 Morros Rd 13. Bus Garage 639 I~roo Rd 14. OlympicChrstian School 43 O'Brlen Rd · 15. OryG'eekSc:hoo~ 25 RifeRd 16. Franklin School 2505 SWashin§ton St 17. North Olympic Library System 2210 S. Peabody St mil 18. ~ueenofAngeies 1007 SOakSt I 1. HospiceOfClal~mCounty 540 ESthSt 1 1 2. Olympic Medical Center 920 Caroline St 1 1 3. Olymple Medical Center 939 Carolina 1 1 4. Olympic Memorial Hospital 1005 Geergiana St 1 1 S. PCMH - Children's Center 1004 W 16th St 1 1 6. PCMH - Second Street House 138 W 2nd St I 1 7. PCMH - Horizon Center 205 E 5th St 1 1 I I I Metropolitan Communications Consultants 8/31/01 II Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 89 EXHIBIT C SUBSCRIBER SERVICE STANDARDS I. STANDARDS A. The Cable Operator shall provide subscribers a toll-flee or local telephone number for installation, service, and complaint calls. B. and Office Availability. The Cable Operator must have telephone lines, either Telephone adequately staffed or with answering capability, providing at least emergency referral, information, which are operational twenty-four (24) hours a day, every day, including weekends and holidays. 1. Under "Normal Operating Conditions" and when phones are staffed, subscriber calls to the Cable Operator will be answered on average within thirty (30) seconds ninety percent (90%) of the time measured on a quarterly basis; and subscribers will receive a busy signal three percent (3%) of the time or less. Failure to meet these standards, within a reasonable time, after notice of failure to do so, shall subject Cable Operator to appropriate regulatory action including liquidated damages as provided by the Franchise. 2. On weekdays, during "Normal Business Hours" the Cable Operator must have telephone lines and its office(s) located within the City of Port Angeles, open and adequately staffed, and able to respond to subscribers a minimum of forty-eight (48) hours a week, with a minimum of eight (8) hours per day, on weekdays, in at least four ways: a. To accept payments; b. To exchange or accept return of Cable Operator provided equipment; c. To schedule and conduct technical calls; and d. To answer subscriber inquiries. e. To respond to subscribers a minimum of forty-eight (48) hours a week, with a minimum of eight (8) hours per day, on weekdays. 3. On Saturdays, during Normal Business Hours the Cable Operator must have adequate staff available: to accept equipment, such as Converters, at the option of the Cable Operator either at its office or in the field, to schedule and perform emergency service or emergency technician calls; must have the capability to accept payments (this may be done through arrangements with unaffiliated retailers); and to answer subscriber inquiries which may be answered by advising the caller when and to what number to call back during weekdays. ~1. HANDICAPPED ACCESS The Cable Operator shall comply with all rules and regulations pertaining to the Americans with Disabilities Act. III. EMPLOYEE IDENTIFICATION All personnel of the Cable Operator contacting subscribers or potential subscribers outside the office of the Cable Operator must be clearly identified as associated with the Cable Operator. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 90 IV. INSTALLATIONS A. Standard installation charges will apply to those installations which are within serviceable addresses and consists of an aerial or underground drop of no more than 150 feet in length running from the nearest feeder cable of the System to the terminal of the subscriber, utilizing exposed wiring inside the subscriber's premises. Installations requiring materials or procedures which exceed those minimum lengths, or in the case of any underground drop which involves unforeseen or extraordinary conditions, could be subject to additional charges, as determined by the Cable Operator, provided that such additional charges shall be fair, reasonable, and nondiscriminatory, to the extent applicable law and regulations provide. B. All installations will be in accordance with FCC rules, including but not limited to, appropriate grounding, adjustment of the television set in order to receive Service, and the provision of required subscriber information and literature to instruct the subscriber in the utilization of the Services. C. Under normal operating conditions, if the Cable Operator cannot perform standard basic installations as defined above within seven (7) business days of request by a subscriber (provided that the schedule or preferences of the person requesting installation have not been responsible for the delay), the subscriber may request and is entitled to receive a free standard installation. If the Cable Operator fails to provide this free standard installation and the subscriber made the request within thirty (30) days of the installation request, the City may direct the Cable Operator to issue a credit for the installation. Failure to comply with the City directive will subject Cable Operator to appropriate regulatory actions. This section does not apply to the introduction of new products and services when Cable Operator is utilizing a phased introduction. V. SERVICE INTERRUPTIONS AND OTHER SERVICE PROBLEMS A.The Cable Operator shall make repairs promptly, and interrupt Service only if necessary and for the shortest period possible. B. The Cable Operator shall exercise its best efforts to limit any Significant Service Interruption for the purpose of maintaining, repairing, or construction of the System. Except in an emergency or other situation necessitating a more expedited or alternative notification procedure, the Cable Operator may schedule a Significant Service Interruption only after affected subscribers have been given reasonable prior notice of the proposed interruption. C. Technicians employed by the Cable Operator and capable of performing service-related emergency repairs and maintenance must be available twenty-four (24) hours a day on a stand by basis, including weekends and holidays. D. The Cable Operator shall maintain a summary of significant service interruptions and service calls received by category. For the purposes of this Section, a "Significant Service Interruption in the operation of the System "shall mean any outage a duration of at least four (4) continuous hours between the hours of 6:00 a.m. to 10:00 p.m. and eight (8) continuous hours between the hours of 10:00 p.m. and 6:00 a.m. to at least 200 of the subscribers in the area served by Cable Operator. The City Manager, or his or her designee, and the Cable Operator shall agree to the definitions used to classify service calls. 1. Under normal operating conditions, the Cable Operator will begin repairing Service Interruptions promptly and in no event later than twenty-four (24) hours after the interruption becomes known (including weekends and holidays) unless the subscriber requests an appointment later than 24 hours after the interruption. Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 91 2. Under normal operating conditions, the Cable Operator must begin actions to correct Service problems other than Service Interruptions the next business day after notification by a subscriber of the Service problem unless the subscriber requests an appointment at a later date. 3. Under normal operating conditions, service-related subscriber complaints within Grantee's control, if possible, must be resolved within forty-eight (48) hours (provided that the schedule or preferences of the person requesting service have not been responsible for the delay) and in any event, resolution must occur within one (1) week. A complaint shall be considered to be resolved when signals received by the subscriber have been brought into compliance with applicable FCC standards. Those matters requiring additional maintenance, repair, or technical adjustments that necessitate an excess of one (1) week to reasonably complete, must be finally resolved, if technically feasible, within thirty (30) days of the initial complaint if the complaint has been determined to be the fault of the Cable Operator. The City Manager, or his or her designee, may require reasonable documentation to be provided by the Cable Operator to substantiate the additional time to resolve a complaint. The foregoing does not apply to minor service interruptions that occur on an intermittent basis. 4. Under normal operating conditions, upon request by the subscriber or City Manager, or his or her designee, the Cable Operator shall provide a credit to subscriber when there is an Outage of all channels for a period of twenty four (24) consecutive hours or more which affects the discrete definable service area. The credit for such an Outage shall equal, at a minimum, the value of one-thirtieth (1/30) of subscriber's current monthly bill excluding premium, pay-per-view and special events, for the first twenty-four (24) consecutive-hour period and prorated for each additional 4-hour period or portion thereof that the Outage continues. 5. Under normal operating conditions, upon request by the subscriber or City Manager, or his or her designee, the Cable Operator shall provide a credit to subscriber when there is an Outage of any premium Service for a period of twenty-four (24) consecutive hours or more which affects a discrete, definable service area. The credit shall equal, at a minimum, the value of one thirtieth (1/30) of subscribers current monthly bill, for affected premium services, for the first twenty-four (24) consecutive-hour period and prorated for each additional (4) hour period or portion thereof that the Outage continues. 6. Under normal operating conditions, upon request of the subscriber or City Manager, or his or her designee, the Cable Operator shall provide a credit to the subscriber whenever an Outage for a period of twenty four (24) consecutive hours or more has affected fewer than all of the non-premium channels received by the affected subscriber as part of their Service. The credit shall equal the value of one-thirtieth (1/30) of the prorated portion of the rate per affected channel times the number of affected channels. 7. The Cable Operator shall, upon request, provide information to the City Manager, or his or her designee, regarding the amount of credits that were issued to subscribers for loss or degradation of service. 8. Repeated failure to provide the proper credit for Outages shall be grounds for regulatory action including liquidated damages as provided by the Franchise. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 92 VI. INSTALLATION AND SERVICE APPOINTMENTS A. The "appointment window" alternatives for installations and service calls that require subscriber presence will be either a specific time or, at maximum, a four hour scheduled time block during normal business hours. The schedule time block may be longer if the subscriber consents. (The Cable Operator may schedule service calls and other installation activities outside of normal business hours for the express convenience of the subscriber). This provision does not apply to disconnects, service upgrades or downgrades which do not require access to the subscriber's premises or to special request orders. B. Under normal operating conditions, if the Cable Operator does not arrive for installations or service calls by appointment within the scheduled four-hour time frame agreed to by the subscriber, the subscriber may request and is entitled to receive a $20.00 credit. If the Cable Operator fails to provide such credit, and the subscriber made the request within thirty (30) days of the missed appointment, the City may direct the Cable Operator to issue the credit. Failure to comply with the City's directive will subject Cable Operator to appropriate regulatory action including liquidated damages as provided by the Franchise. C. Under normal operating conditions, the Cable Operator may not cancel an appointment with a subscriber after the close of business on the business day prior to the scheduled appointment without the subscriber's consent. D. If the Cable Operator's representative is running late for an appointment with a subscriber and will not be able to keep the appointment as scheduled, the Cable Operator will make a diligent effort to contact the subscriber directly. If, however, the subscriber is unavailable at the time the contact attempt is made, the Cable Operator will attempt a second contact at least one more time during the previously agreed upon appointment window. The appointment will be rescheduled, as necessary, at a time which is convenient to the subscriber. Contacting the subscriber will not necessarily negate the requirement for a free standard installation. VII. NOTICES AND SUBSCRIBER COMMUNICATIONS A. All required subscriber notices shall be submitted in advance to the City Manager, or Iris or her designee for the City's information and comment. Such advance submittals, shall not imply that prior approval of the City Manager is required and shall not relieve the Cable Operator of any responsibility for errors in the Cable operator's subscriber notices. B. The Cable Operator shall send annually, written notice to all subscribers informing them that any complaints or inquiries not satisfactorily handled by the Cable Operator may be referred to the City Manager, or his or her designee. Such notification shall be either: 1. A separate document which may be included with a billing statement; or 2. Included on the portion of the monthly bill that is to be retained by the subscriber. C. The Cable Operator's telephone number for service and the telephone number for the City Manager, or his or her designee, shall be contained in the notice. This notice shall also fully describe the Cable Operator's telephone hours and, when applicable, the lobby hours and shall include the telephone number(s) available to subscribers after the Cable Operator's normal business hours through which subscribers can obtain, at a minimum, emergency referral information. No promotional material may be included on the separate document or the portion of the bill containing this notice. A draft of this notice shall be forwarded to the City Manager, or his or her designee, for review and comment, after which the City Manager, or his or her Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 93 designee, shall respond with comments within 3 business days. The annual notice may be combined with the notice delineated in Section VII. B. D. The Cable Operator shall notify affected subscribers at least thirty (30) days in advance of any pricing changes or additional charges (excluding temporary marketing and sales discounts or offers) and/or any changes in programming services (including the scrambling or descrambling of channels - except the descrambling of a channel(s) for promotional purposes). E. The Cable Operator shall provide written information to subscribers on each of the following areas at the time of installation of Service, at least annually to all affected subscribers, at any time upon request, and for affected subscribers, at least ten (10) days prior to making significant changes in the information required by this Section: 1. Products and services offered; 2. Prices and options for programming services and conditions of subscription to programming and other services and facilities, including available discounts offered; 3. Installation and maintenance policies including, when applicable, information regarding the subscriber home wiring rights and information describing ownership or internal wiring during the period Service is provided; 4. Instructions on how to use the Service; 5. Channel positions of programming offered on the System; 6. The address and telephone number of the Cable Operator's office to which complaints may be reported; and 7. Billing and complaint procedures, including the name, address and telephone number of the City Manager, or his or her designee; The availability of a parental control device; 9. The Cable Operator's practices and procedures for protecting against invasions of privacy; 10. When applicable, the Cable Operator's Community Unit Identifier, as specified by the FCC. F. In all subscriber communications, the Cable Operator shall be as clear and precise as possible. G. Notices of changes of programming services and/or channel locations shall include a concise description of the new programming service and the specific dial location, of that programming service. In addition, should the dial location, be affected by the introduction of a ~ew service, such information must also be included in the notice. H. In order that subscribers are fully apprised of the charges they may incur, Cable Operators will generally be required to note if advertised rates are subject to additional taxes and fees. L In order that subscribers are fully apprised of the charges they may incur, telephone communications with subscribers that quote rates, fees, and/or other charges shall inform subscribers that the rates, fees, and/or charges are subject to additional taxes and fees. J. Every notice of termination of Service shall include all of the following information: 1. The name and address of the subscriber whose account is delinquent; 2. Current account balance; 3. The date by which payment is required in order to avoid termination of Service; and 4. The telephone number of a representative of the Cable Operator who can provide additional information and handle complaints or initiate an investigation concerning the Service and charges in question. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 94 VIII. BILLS A. Bills must be itemized, in accordance with service or services purchased by subscribers and related equipment charges as provided by law and regulations. If, on bills, a Cable Operator chooses to itemize as a separate line item franchise fees and/or other governmentally imposed taxes and/or fees attributable to the total bill, such taxes and/or fees must be shown in accordance with any applicable law concerning the Cable Operator's ability to itemize such taxes and/or fees. B. Every residential subscriber sending payment directly to the Cable Operator shall have at least ten (ten) business days from the postmarked date of the initial bill for the delinquent amount for Services to pay the listed charges prior to disconnect for non-payment. C. A specific due date shall be indicated on every subscriber bill. This provision applies only to active accounts not those accounts pending disconnect. D. Any subscriber who, in good faith, disputes all or part of any bill has the option of withholding the disputed amount without disconnection until Cable Operator has investigated the dispute and has made a determination that the amount is owed provided that: 1. The subscriber pays all undisputed charges; 2. The subscriber provides written notification of the dispute to the Cable Operator in a timely manner and includes identifying information; and 3. The subscriber cooperates in determining the appropriateness of the charges in dispute. E. Subscriber bills from Cable Operator shall include the name, address and telephone number of the City Manager, or his or her designee. The City Manager, or his or her designee, will provide the required information to Cable Operator on an annual basis by January 1, or as needed. F. The Cable Operator shall forward, on a monthly basis, a sample bill and billing inserts for the current billing period to the City Manager, or his or her designee. G. The Cable Operator shall forward all regulatory billing inserts and copies of all other mailings required by governmental authorities to subscribers to the City Manager, or his or her designee, prior to or at the same time that they are provided to subscribers. (Copies of notices to subscribers must be forwarded to the City Manager, or his or her designee, pursuant to the applicable sections of these Subscriber Service Standards.) H. To the degree that it is economically feasible, the Cable Operator shall permit and allow payment by direct electronic transfer, automatic bank drafts and automatic credit card charges. IX. DISCONNECTION/DENIAL OF SERVICE A. The Cable Operator shall not terminate residential Service for nonpayment of a delinquent account unless the Cable Operator provides initial notice of the delinquency and impending termination at least ten (10) days prior to the proposed termination. The notice shall be mailed, postage prepaid, to the subscriber to whom the Service is billed. This notice shall not be sent prior to the twenty-eighth (28th) day after the initial bill for Services was mailed to the subscriber. The notice of delinquency and impending termination may be part of a billing statement. This section does not apply to subscribers disconnected due to NSF checks. B. The Cable Operator shall only terminate Service on days when subscriber can reach a representative of the Cable Operator either in person or by telephone. Service terminated without Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 95 good cause must be restored without charge for the Service restoration. Good cause includes, but is not limited to, signal leakage, failure to pay, payment by check for which there are insufficient funds, theft of Service, abuse of equipment or System personnel or other similar subscriber actions. C. Subject to provisions of the franchise agreement, the Cable Operator shall furnish and maintain Services to each person, in the Service Area, who qualifies for service, who makes a request to receive any programming service, and has paid required charges. Nothing in these Standards shall limit the fight of the Cable Operator to deny Service to any household or individual which has a negative credit or service history with the Cable Operator, which may include non-payment of bills or theft or damage to the Cable Operator's equipment, or or who has threatened assaulted employees of the Cable Operator in the course of their employment. Provided that in the event Service is denied, the Cable Operator will give notice to the subscriber of the fight to contact the appropriate regulatory authority, providing name, address, and phone number as directed by the City Manager, or his or her designee. X. DEPOSITS, REFUNDS~ AND CREDITS A. The Cable Operator may require rel:undable deposits for service or equipment. Upon termination of Service for any reason, subscribers will be entitled to receive a refund or credit against amounts owed by the Cable Operator equal to the deposit. B. On all deposits, Cable Operator shall be required to pay simple interest at a rate of one-half month Such interest shall be accrued and payable percent (1/2%) (6% year). per upon termination of Service. Upon termination of Service for any reason, subscribers will be entitled to receive a refund or credit against amounts owed the Cable Operator equal to the deposit plus accumulated interest. The rate may be modified to reflect prevailing market rates upon approval by the City, which shall not be unreasonably withheld. Such interest shall be accrued on deposits charged to subscribers after October 18, 2001. Cable Operator will not be required to pay simple interest on deposits received prior to such date. C. Refund checks will be issued promptly following the resolution of the event giving rise to the refund within sixty (60) days. In addition to a refund, if the Cable Operator fails to mail a check for a refund to any subscriber disconnecting Service with an outstanding credit of $3.00 or more within sixty (60) days of the date Service is ended, and the subscriber has returned all Cable Operator owned equipment, the subscriber is entitled to receive a $11.00 penalty payment, in the total refund due. Failure to with the $11.00 shall be addition to comply penalty provision grounds for appropriate Enforcement Action. Refunds will be provided to subscribers with outstanding credits of less than $3.00 upon request. D. Credits for Se~ice will be issued no later than the subscribers next billing cycle following the determination that a credit is warranted. XI. RATES, FEES, AND CHARGES A. The Cable Operator shall not, except to the extent permitted by law, impose any fee or charge on any subscriber for service calls to said subscriber's premises to perform any repair or maintenance work related to Cable Operator installed equipment necessary to receive Service, except any such work which was necessitated by a negligent or wrongful act of said subscriber. B. Where the actions of the Cable Operator, its agent(s) or subcontractor(s) can be shown upon a reasonable demonstration of evidence to have contributed to the theft, loss or damage of a Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 96 I converter or other equipment lawfully used by a subscriber, the subscriber's liability with respect I to said converter or other equipment shall be reduced to the extent of such contributing actions. C. All charges for residential Services must be applied on a nondiscriminatory basis as provided by I law, allowing however, for reasonable discounts to qualifying subscribers and that the Cable Operator may conduct promotional campaigns in which rates are discounted or waived, and may similar°ffer commercialinstitutions.rates or bulk rate discounts for multiple dwelling units, hotels, motels and I D.hasThe beenCablemailed.Operat°r shall not assess late fees until at least 30 days after the initial bill for services I E. The Cable Operator sl~all be entitled to recover all lawful fees for checks returned due to non-sufficient funds. I XlI. PRIVACY PROTECTIONS The Cable Operator shall comply fully with all applicable State and federal laws relating to the protection I of subscriber privacy. The Cable Operator shall not disclose the telephone number of any subscriber for any purpose that is not directly related to the provision of services offered by Cable Operator. The Cable I Operator shall not require more personally identifiable information than is necessary to confirm the identity of a subscriber and any past due amounts owed the Cable Operator. The type of information considered to be necessary, may vary depending on the individual subscriber. The Cable Operator may I deny service if a subscriber fails to produce any verifiable personally identifiable information after being requested to do so. XIII. ENFORCEMENT I The City may seek all rights and remedies under the franchise and/or injunctive relief or any other judicialstandards.remedy available pursuant to state or federal law in order to enforce compliance with these I XIV. RIGHTS RESERVED BY THE CITY I The City reserves the right to establish additional, reasonable subscriber service standards from time to time, as may be necessary, after making a finding of need and after notice and opportunity to be heard from the Cable Operator. The City reserves the right to regulate rates for video or Cable Service to the I fullest extent permitted by law. Metropolitan Communications Consultants 8/31/01 I Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 97 EXHIBIT D SUBSCRIBER SERVICE REPORTING REQUIREMENTS All reports shall be provided for the Port Angeles Franchise Area where the capability exists. Otherwise, system-wide reports are acceptable and shall be deemed to reflect Port Angeles Franchise Area numbers based on the Allocation Percentage (the number of Franchise Area subscribers divided by the total system subscribers). REPORTS 1.1 During the first two years of the Basic Term, Grantee shall provide bi-annual reports. Thereafter, annual reports shall be due within (30) thirty business days of the close of each report period, unless otherwise agreed upon by the City Manager or Designee and the Grantee. 1.2 The Grantee shall provide reports to the City Manager or Designee containing a monthly summary of service calls and other complaints by category, which shall be agreed to by the City Manager or Designee. (Re: Section V in Subscriber Service Standards). 1.3 The summary shall include the following: A. Number of subscribers in each service tier and cable modem service. B. Report total number of service calls by category that were resolved within: 1. 48 hours 2. 7 calendar days 3. more than 30 calendar days C. Number of subscribers receiving discount, including copies of any applications denied during the reporting period. D. A comprehensive list of subscriber addresses, sorted by street name then street number within the franchise area. 1.4 The reports must contain a monthly summary including but not limited to the following information: A. Telephone Report shall contain information relevant to the question of whether its telephone answering system continues to conform to Section 1.B of Exhibit A to the extent such reports are reasonably available from the phone system. 1. Total number of calls received for the total system. Total number of calls abandoned for the total system. 3. Total percentage of calls abandoned. 5. Average time on hold before abandoned. 6. Average speed of calls answered. 7. Percentage of calls answered within thirty (30) seconds (FCC standards). 8. Percentage of calls receiving a busy signal. 9. A description of significant events impacting the response times. In addition to the above, the Report shall include a graph(s), which depicts the first seven (7) items above. FCC standards shall be used as benchmark. Metropolitan Communications Consultants 8431/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 98 If the City Manager or Designee determines, based on complaints or any other evidence, that the Grantee's telephone service does not meet the standards set forth in Subscriber Service Standards, or any variations in those standards previously agreed to by the City Manager or Designee, then the City Manager or Designee has the authority to order the Grantee to take appropriate action to meet such standards. Failure of the City Manager or Designee to issue such order, however, shall not constitute a waiver of the C ty s mghts w~th respect to any failure by the Grantee to comply with its obligations pursuant to this Exhibit or this Agreement. B. Number of $11.00 penalty payments given to subscribers for failure to refund outstanding credits greater than $3.00 within 60 days of the date Service is ended. C. Number of $20 credits that were issued for failure to arrive for installations or service calls by appointment within four-hour scheduled timeframe D. Significant Service Interruptions report which shall track information on a monthly basis to include: 1. Total number of significant service interruptions 2. Time of the significant service interruptions 3. Total hours that the system is out-of-service as related to planned maintenance or channel line-up changes performed by Grantee 5. Submit reports in graphs as well for comparative analysis E. Subscriber chum report for Port Angeles system. The City shall maintain confidentiality of this information. F. Grantee shall maintain results of any technical testing on the system. The City may request to review this report at Grantee's office. G. A historical summary of the information submitted to the City in prior reports. H. Affirmative action. Metropolitan Communications Consultants 8/31/01 Appendix H.20 - Informal Proposal for the Cable Franchise Renewal page 99 EXHIBIT E PUBLIC UTILITY TAX ORDINANCE AMENDMENT ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, levying a cable television business public utility tax and amending Ordinance and Chapter 5.80 of the Port Angeles Municipal Code_. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DOES HEREBY ORDAIN as follows: Section 1. Ordinance as amended and Chapter 5.80 of the Port Angeles Municipal Code are hereby amended by PAMC 5.80.040 to read as follows: 5.80.040 Tax Levied - Telegraph Business, Cable Television Business and Public Utilities. A. From and after j'anuary I, 1982, there is levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on telegraph business for hire or sale within or partly within the corporate limits of the City a tax for the privilege of so doing business. Such tax shall be levied at the rate of three percent of the total gross operating revenues of such business derived within the City. B. From and after February 16, 1991, there is levied upon, and there shall be collected from, every person, firm, corporation or public utility district engaged in the distribution and sale of electricity within or partly within the corporate limits of the City a tax for the privilege of so doing business. Such tax shall be levied at the rate of six percent of the total operating revenues of such business de~ived within the City, excluding revenues derived from the sale of electricity for resale. C. From and after February 16, 1991, there is levied upon, and there shall be collected from, the City's electric utility, a tax at the rate of six percent of the total operation revenues of such utilities, excluding revenues derived from the sale of electricity for resale. (Ord. 2726 §1, 1/1/93, Ord. 2621 §1, 2/16/91; Ord. 2215 §1, 6/14/82; Ord. 2201 §1, 3/1/82; Ord. 2183 §4, 1/1/82.) D. From and after January 1, 1997, there is levied upon and there shall be collected from, the City's solid waste utility and water/wastewater utility, a tax at the rate of eight percent of the total operation revenues of such utilities. (ord. 2941, 12/27/96; Ord. 2726 §1, 1/1/93) E. From and after October 18, 2001, there is levied upon, and there shall be collected from, every person, firm, corporation engaged in carrying on cable television business for hire or sale within or partly within the corporate limits of the City a tax for the privilege of so doing business. Such tax shall be levied at the rate of six percent of gross revenues less any Franchise fees payable, as defined in ordinance no. XX. Metropolitan Communications Consultants 8/31/01 WASHINGTON, U.S.A. COMMITTEE MEMO DATE: September 10, 2001 To: UTILITY ADVISORY COMMITTEE PORT ANGELES WORKS! COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT: Fiber Optic Pilot Project Status Report 3 Summary: The City and its consultant have proceeded to implement the fiber optic backbone business plan, including the fiber optic pilot project. The City has received interest from Qwest, Northland, Capacity Provisioning, and the Clallam County PUD No. 1 that provide opportunities to achieve City goals in partnership with others. Rec~ommendation: Recommend that City Council delay the fiber optic pilot project schedule to allow additional time to prepare and negotiate proposals. Background/Analysis: On May 22, 2001, Council approved the Fiber Optic Backbone Business Plan, which verified the overall feasibility to develop a fiber optic backbone. As part of the Business Plan, a strategic direction was recommended that explores partnership opportunities to develop a fiber optic backbone, retaining City development as the opportunity of last resort. The business plan recommended the City's role should be an infrastructure enabler versus a telecommunications services provider. The business plan's mission is "To ensure delivery of broadband telecommunications products and services to Port Angeles by 2002, by enabling the development of necessary telecommunications infrastructure." A summary of the business plan's infrastructure development strategic direction is provided below. Business Plan Infrastructure Development Scenario Strategic Direction 1. City Development Delay until outcome of Scenarios 2-4 2. City/Cable provider partnership Proceed with negotiations 3. City/Telephone Partnership 4. City/Cable/Telephone consortium Proceed with consortium planning As part of the May 22, 2001 approval, City Council approved a fiber optic pilot project. In addition, Council author/zed staff to proceed with technical and legal consulting services to negotiate an upgrade to the Cable Operator's infrastructure as part of the franchise renewal. Furthermore, Council authorized consulting services in support of consortium partner development. September 10, 2001 Committee Memo RE: Fiber Optic Pilot Project Status Report 3 Page 2 On July 18, 2001, the City received a proposal from Qwest to build a fiber optic ring and to operate it for a cost of approximately $750,000 to $1,500,000. On July 26, 2001, in response to Qwest's proposal, the City requested that Qwest respond to some clarifying questions that were prepared by Metropolitan Communications Consultants (see attachment A for Qwest correspondence). On July 26, 2001, Northland Cable Television delivered a presentation to the City on their fiber optic network upgrade plans. Based on Northland's plans, an accelerated schedule is underway to renew the cable television franchise. On August 31, 2001, Northland suggested that the City delay moving forward with the pilot project (see attachment B for Northland correspondence). On August 30, 2001, Capacity Provisioning accepted a right-of-way license agreement for construction of a fiber optic network within the City. On September 6, 2001, the Clallam County PUD No. 1 also accepted a right-of-way license agreement for construction of a fiber optic network within the City. The PUD recently shared preliminary wholesale pricing information that will also be discussed at the meeting. Mr. Richard Li from MCC will present status report 3 which will be available at the meeting. Based on significant partnership development opportunities, Staff recommends that pilot project activities be postponed until November 1, 2001. Staffproposes that the next special joint meeting of the Utility Advisory Committee/Port Angeles Works! Committee would be held on November 13, 2001 to seek further guidance on the pilot project. Attachment A Qwest Correspondence pORTANC;EL ,s WASHINGTON, U.S.A. PUBLIC; WORKS & UTILITIES DEPARTMENT Thursday, July 26, 2001 Jane Nishita Community Affairs Qwest 1600 7th Avenue, Room 3202 Seattle, WA 98191 Dear Ms. Nishita, Thank you for your interest to construct a fiber optic ring in the City of Port Angeles. We look forward to discussing your concept further! Earlier this year Council approved a Telecommunications Business Planning Analyses including a mission '1o ensure delivery of broadband telecommunications products and services in 2002, by enabling the development of the necessary telecommunications infrastructure". As part of that approval, we authorized a consortium padner approach to develop infrastructure because it will achieve the City's goals and be supedor and easier to implement than a standalone City developed and owned infrastructure project. We are planning to advertise a formal C°nsortium partner solicitation in September of this year. However, before proceeding with a competitive process, the City decided to provide incumbent service providers an opportunity to submit proposals. Based on your demonstrated interest, we encourage Qwest to respond to some clarifying questions that our consultant, Mr. Richard Li from Metropolitan Communications Consultants has prepared (see attached). Based on your July 18, 2001 communication, we encourage Qwest to expand your interests into a detailed proposal for the City's consideration at your eadiest convenience. Sincerely, La~ ~yle Mayor 321 EAST FIFTH STREET ® P. O. BOX 1150 ® PORT ANGELES, WA 98362-O217 PHONE: 360-417-4805 ® FAX: 360-417-4542 ® TTY: 360-417-4645 E-MAIL: pU BWOR~S C~CI.PORT-ANGE LeS.WA.US METROPOUTAN COMMUNICATIONS CONSULTANTS Seattle: 5E47 McKinley FI. N., Seattle, Washington 98103 Tet: 206,522.6778 Fax: 206.522.6777 MEMORANDUM Date: July 26, 2001 (Revised) To: Larry Dunbar From: ~chard Li QWEST OFFER IN E-MAIL FROM JANE NISHITA DATED JULY 18, 2001 Qwest's interest statement 1. Qwest would be interested in building the entire ring as depicted and then, operating it. 2. We do not see value in constructing a portion of it. 3. As a rough estimate, Qwest could build, operate and maintain the network (or one that provides the same functionality) for approximately $750,000 - $1.5 M with funds provided to us. 4. We invite you to check that our price tag for this build out is as competitive as you will receive from anyone else. Benefits proposed by Owest 5. By having this ring built - the City effectively reduces the threshold of expense to the prospective broadband users along the ring. 6. Instead of paying Qwest for - construction costs to get the fiber to their doorsteps, and - the one-time installation f~es and - a monthly charge the user would only be paying the one-time installation and the monthly charges. 7. Effectively, the City of Port Angeles would be paying for one element that gets the fiber infrasfl~ucture located closer to the users. 8. Qwest is very interested in working with the City to convert the expressions of interest collected by the survey into subscriptions for service requiring fiber. MCC COMMENTS AND QUESTIONS Introductory Comments We appreciate Qwest bringing an offer to the table and being willing to seek a means of working with the City. Our analysis and comments are made in the same spirit of collaboration, with the intention of clarifying our understanding of the offer and the hope that as we work through the details, a solid, workable, and mutually acceptable proposition will emerge. Metropolitan Communications Consullants 7/26/01 Revised Memo re Ju~y 18, 2001 Message from Qwest page 2 of 2 Pilot Project · Under what conditions would Qwest reconsider participation in the pilot project? Would Qwest be willing to allow the City to interconenct to its central office? Is Qwest willing to allow the City to utilize any of its current fiber optic infrastructure? Does Qwest want to provide services to users that participate in the pilot project? What will be built? · Recognizing the City's commi~nent to its citizens and the City's goal to bring city-wide broadband access, what does the offer cover? The City's plan includes the metro network, consisting of backbone, distribution system to the end user, and network equipment. · Qwest's offer implies that the distribution system is included by the reference to "fiber to their doorstep" in item 6 above. The user paying a "monthly charge" also referenced above in item 6 implies that the network is lit and that equipment is included. · The reference to "equivalent functionality" in item 3 implies an alternative. Is this a reference to integrating existing Qwest infrastructure, and in particular the copper last-mile? Ownership/Regulatory Issues · Who will own the network that Qwest is offering to build? If the City is the owner, will Qwest b~ a network customer or lease fibers from the City? · If Qwest will be the owner, - how does the City get a return on its investment? - Will the network have "open access" for other service providers? - Could another service provider come in and use available dark fibers? - Will Qwest define what products and services will be available, and at what cost? - If Qwest is controlling the end-user, who sets the pricing and is t_his a tariff controlled structure? - Would there be an issue for the City of a gift of publ/c funds? - Are there any regulatory requirements that may limit Qwest's participation? Design and Construction · Is design included? And will the design be able to accommodate Northland Cable's needs? · InQwest~s~~er~aretheymakinga~r~~~sa~asac~ntract~r/installer/~perat~r?~fs~~h~wwilltheCity satisfy the public bidding laws for municipal public works contracts? · Can Qwest meet the City's schedule to have the project in operation in 2002? Operation, Management and Maintenance · Is Qwest interested in operating, managing and maintaining the City's pilot project and/or a dty-wide network? END OF MEMO Metropolitan Communications Consultants 6128/01 Lar~ Dunbar From: Jane Nishita [jhnishi@uswest.com] Sent: Wednesday, July 18, 2001 12:08 PM To: Larry Dunbar Cc: Mike Quinn; econdev@ci.port-angeles.wa.us Subject: Pilot Project MR. DUNBAR Larry: Qwest appreciates the City of Port Angeles' interest in including Qwest in your efforts to take fiber optic infrastructure to the doorsteps of your business community. Your plan calls for a buildout of a dual ring of fiber infrastructure. Your pilot project in which you are inviting Qwest participation, calls for building only a small portion of that dual ring. You invited our expression of interest. Following is how Qwest would be interested in participating: Qwest's interest statement: Qwest would be interested in building the entire ring as depicted and then, operating it. We do not see value in constructing a portion of it. As a rough estimate, Qwest could build, operate and maintain the network (or one that provides the same functionality) for approximately $750,000 - $1.5 M with funds provided to us. We invite you to check that our price tag for this build out is as competitive as you will receive from anyone else. By having this ring built - the City effectively reduces the threshhold of expense to the prospective broadband users along the ring. Instead of paying Qwest for construction costs to get the fiber to their doorsteps, AND the one-time installation fees AND a monthly charge, the user would only be paying the one-time installation and the monthly charges. Effectively, the City of Port Angeles would be paying for one element that gets the fiber infrastructure located closer to the users. Qwest is very interested in working with the City to convert the expressions of interest collected by the survey into subscriptions for service requiring fiber. Thank you for inviting our interest. We look forward to discussing this concept further. Jane Nishita Community Affairs Qwest Phone: (206) 345-2316 Fax: (206) 346-7289 E-mail: jhnishi@qwest.com Attachment B Northland Correspondence pORTANC;ELES WASHINGTON, U.S.A. PUBLIC WORKS & UTILITIES DEPARTMENT Monday, July 30, 2001 Pete Grigorieff Regional Manager Northland Cable Television 725 East First Street Port Angeles, WA 98362 Dear Mr. Grigorieff, Thank you for sharing your plans to upgrade your fiber optic network in the City of Port Angeles. We look forward to discussing your concept furthed Eadier this year Council approved a Telecommunications Business Planning Analyses including a mission "to ensure delivery of broadband telecommunications products and services in 2002, by enabling the development of the necessary telecommunications infrastructure". As part of that approval, we recognized the opportunity to ¢~artner with Northland as part of the franchise renewal and authorized a consortium partner approach to develop infrastructure. We believe that either approach will achieve the City's goals and be supedor and easier to implement than a standalone City developed and owned infrastructure project. We are planning to advertise a formal consortium partner solicitation in September of this year. However, before proceeding with a competitive process, the City decided to provide incumbent service providers an opportunity to negotiate proposals. Based on your July 26, 2001 presentation, we are interested in promptly proceeding with informal discussions and negotiation of your next franchise. Sincerely, Larry Do~jle ' f Mayor 321 EAST FIFTH STREET ® P. O, BOX I 150 ® PORT ANGELES, WA 98362-0257 PHONE: 360-4!7-4805 · FAX: 360-4 ~7-4542 · TTY: 360-4 ~7-4~4~ E-MAIL: PUBWORKS~CI.PORT-AHGE LES.WA,US NORTHL4ND COMMUNIG TIONS CORPORATION 1201 Third Avenue, Suite 3600 VIA CERTIFIED MALL, RETURN RECEIPT REQUESTED Seattle, Washington 98101 FAX (206) 623-9015 August 31, 2001 (206) 621-1351 Mr. Larry Dunbar Power Resources Manager City of Port Angeles 321 East Fifth Street Port Angeles, WA 98362-0217 VIA E-MAIL & U.S. Mail RE: Informal Proposal for the Renewal of Cable Franchise Dear Larry: I was hoping to catch you on the phone today, as I wanted to update you on our efforts in responding to the first draft of the proposed renewal of Northland's cable television franchise in Port Angeles. As we discussed last week, it is indeed taking us longer to get through the first draft of the franchise proposal. We have received, and appreciate the opportunity to view the draft Needs Analysis and Assessment as part of our review process. Unfortunately, I do not believe that we will have all of our senior management team's input to you prior to our scheduled meeting on Wednesday, September 5~ as many people here have been unavailable or out on vacation. Nevertheless, we are seriously and thoroughly reviewing the document, realizing that time is of the essence to meet your schedule with the Utility Advisory Committee and the Port Angeles Works Committee meetings scheduled for September That said, I would like to propose that we do not meet on Wednesday, and instead let us use that time to fully finish our markup for your subsequent review. I would also recommend that we meet soon after your receipt of our comments so that we can maintain a timely schedule and proceed with the franchise renewal efforts. Northland's goal remains to renew the cable television franchise under terms and conditions that are beneficial to both parties. In order to accomplish this, we want to be absolutely sure that we understand the City of Port Angeles's desires, and that we are able to articulate ours to you. To illustrate this point, we believe that the City's pilot project should be incoq~orated into our rebuild plans so that any and all cost efficiencies can be maximized. We are of course, continuing with our design, and cannot over emphasize the potential benefits of including the City's needs into this phase of our upgrade. I believe that both parties are committed to bringing all of this together as part of the franchise renewal process. Again Larry, I really appreciate all of your assistance and support in developing this format in which we can proceed to renew the cable television franchise under informal negotiations. Just to reiterate, the formal procedures of the 1996 Telecommunications Act will be held in abeyance, and Di62b Northland has not waived and does not intend to waive any of its renewal rights set forth in the 1996 Telecommunications Act. Sincerely, NORTHLAND CABLE TELEVISION, INC. Michael W. Roberge Operations Manager, Western Division Cc: Richard C. T. Li, Metropolitan Communications Consultants Pete G-rigorieff, Northland Laura Williams, Northland Richard J. Dyste, Northland Di/79b.doc Di62b pORTA GE, LES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: September 10, 2001 TO: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director of Power Systems RE: ELECTRIC RATE INCREASES Summary: The Bonneville Power Administration is implementing a 46% increase to wholesale power rates starting October 1, 2001. The City will need to increase rates to our electric utility customers to maintain the financial stability of the electric fund. Use of reserves in the rate stabilization fund is also available to reduce the impact on our customers. Angie Sanehez fi.om Economic and Engineering Services will present the results from the just completed rate study. Recommendation: Recommend to City Council utilization of the rate stabilization fund to set rate increases to all customer classes, except Industrial Transmission, that average 19.5 %, and that the Industrial Transmission Customer's rate reflect the actual wholesale power costs plus the existing basic charge. Background / Analysis: The Bonneville Power Administration implemented a rate adjustment and load based cost recovery adjustment clause (CRAC) that increased wholesale rates to the City's electric utility by 46.225%. This rate adjustment will become effective on October 1, 2001, and may be adjusted BPA as often as every six months. The City's market power purchase from Avista Energy is also increasing in price fi.om 14.62 mils per KWH to 19.1 mils per KWH. Transmission rates fi.om BPA will also increase by about 25%. This will increase our wholesale power supply costs for non-industrial load by about $2,400,000. Increases to other non-power costs since the last rate adjustment in 1996 have increased by about $600,000. The other increases are for items such as increased taxes due to higher rates, labor cost increases, and capital expenditures. At the last UAC meeting, the committee recommended use of rate stabilization funds to mitigate the retail rate increase to our customers. A 15% increase was targeted to cover the increase due to wholesale price increases. The remaining 4.5% increase covers increases in taxes and other costs. The increases to the rates were also recommended to be applied only to the non-basic charge billing components (energy and demand). The rates to customers that have average consumption for the customer class will receive a 19.5% increase. Customers that use less than average will N 5PWKS~LIGHT~POWM~Ltcos2001 ~uac091001 .wpd receive somewhat less than 19.5% and those customers using more than the average will see their bills increase slightly more than 19.5%. Rate sensitivity analysis sheets will be provided at the meeting on Monday that depict the increase levels at various consumption levels. With rate levels increasing by 19.5%, it is expected that we will use about $683,000 of the rate stabilization fund in the first year, and $1,025,000 in the second year. Total reserve levels are currently at about $9,000,000. The contracts for our market purchases (CSPE and Avista) will both after two years, and we will revisit rates with the expectation of another increase in October of 2003. It is also a possibility that rates may have to be revised at some time during the next two years, depending on the volatility of the wholesale rates during the six month adjustments. Rate increases at 19.5% would set the residential retail rate at a base charge of $11.00 and an energy charge of $.0475 per KWH. Rate levels for all the customer classes will be presented at the meeting. At the last UAC meeting, the subject of the low-income elderly and disabled discount was discussed. UAC was going to consider the matter again at this UAC meeting. Staff will be available fro the Finance department to answer any questions on this topic. N:~PWK~XuLIGHT~OWM~Ltcos2001 \uae091001 .wpd WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTi:I~ Mi:MO DATE: SEPTEMBER 10, 2001 TO: UTILITY AI)VISORY COMMITTEE FROM: GARY W. KENWORTHY, P.E., DEPUTY DIRECTOR OF ENGINEERING~CITY ENGINEER RE: HIGH ZONE RESERVOIR AND PUD INTERTIE COSTS lummar3,: The City's water system high zone, which also supplies the PUD, is deficient in current and projected storage capacity. It is proposed to construct a new 2.5 million gallon reservoir and intertie pipeline to correct the storage deficiency. The total cost of the project is $1,900,000 with the proposed cost sharing between the City (69%) and PUD (31%) based on total average daily demand in the high zone and PUD's average daily use. The City is discussing the cost sharing with the PUD in order to facilitate budgeting and preparation of an interlocal agreement establishing the participation levels. Recommendation: Continue discussions with PUD and return to UAC with draft interlocal agreement for cost sharing in property acquisitions, design, and construction of the new i§h zone reservoir, intertie pipeline, and appurtenant facilities. Background / Analys~s: The City's existing 1995 comprehensive water system plan and the 2000 update to this plan identify the need for additional water storage capacity in the high zone. The additional storage is needed to meet Depaxtment of Health requirements for the four storage volume requirements: operational, equalizing, fire suppression, and standby. The City has more than adequate storage capacity within its water system except for the high zone. The City's high zone storage needs, as well as the storage deficiency, are attributable, not only to the high zone customers, but also to the PUD's customers supplied from the high zone. The PUD accounts for approximately 31% of the of the high zone storage needs. The current storage capacity deficit in the high zone is 1.8 million gallons and the 20-year defter is projected to be 2.3 million gallons. It is proposed to construct a new 2.5 million gallon reservoir to meet the City's and PUD's needs. The reservoir will be located near Ennis Creek (east or west side) at the same elevation as the Mill Creek reservoir. A new water main, an interfie connecting the new reservoir to the City's 20" watermain near its crossing of Monroe or Golf Course Road, will be also be required. The attached tables provide a cost breakdown of the new reservoir and the intertie, along with the proposed cost sharing between the City and the PUD over the next three years required for property acquisition, design, and construction. Identification of property needed, acquisition and design is anticipated to take the first two years with construction taking place the third year. Staffwill be discussing the cost sharing with the PUD in order to facilitate budgeting and preparation of an inteflocal agreement establishing the participation levels. N:~P WI~ENGIIVEER~6-YEAR~-pud 1 .v4~d ESTIMATED HIGH ZONE RESERVOIR/INTERTIE COSTS Se )tember 10, 2001 Description Total Project 2002 2003 2004 Cost ($2001) Design/Property Design/Property Construction High Zone Res. $I,800,000.00 $100,000.00 $200,000.00 $1,500,000.00 (2.5 MG) lntertie Pipeline $520,000.00 $20,000.00 $100,000.00 $400,000.00 Totals $2,320,000.00 $120,000.00 $300,000.00 $1,900,000.00 PROPOSED CITY AND PUD COST SHARING Agency Total Project 2002 2003 2004 Cost ($2001) Desilp~Propert7 Design/Property Construction City (69%) $1,600,800.00 $82,800.00 $207,000.00 $1,311,000.00 PUD (31%) $719,200.00 $37,200.00 $93,000.00 $589,000.00 Totals $2,320,000.00 $120,000.00 $300,000.00 $1,900,000.00 N :~WKS'~-'NGINEER~-YE AR'~hz~-pud 1 .wpd WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTI=i= M£MO DATE: September 10, 2001 To: UTILITY ADVISORY COMM1TrEE FROM: Stephen Sperr, Utility Engineer SUI~JECT: Pilot Testing of Water Source Fill~ation Options [ The CH2M evaluated several filtration alternatives City's consultant, Hill, to meet the requirements of the Bilateral Compliance Agreement (BCA) with the Department of Health (DOll). Two filtration processes were chosen as most appropriate for the City's water source, (1) Pall's Septra CB filtration, end (2) membrane filtration. Two documents will be sent to the DOH as required under the BCA, for approval: an Evaluation of Filtration Alternatives and a Pilot Testing Protocol. In these, the City is proposing that it will test the Septra CB filtration unit to verify that they are the most appropriate for treatment of the City's water source. If the DOH responds by requiring the City to pilot test another process along with Septra CB, the City will also pilot test membrane filtration. Reeommendatio{a: Recommend that City Council concur with CH2M Hill and Public Works and Utilities staff's decision to pilot test the Septra CB filtration process in order to determine if it is the best municipal treatment facility to be installed if the Elwha dams are not removed. In addition, recommend that the City Council also allow the Public Works and Utilities Director to negotiate with the DOH a Pilot Testing Protocol that may or may not include testinl~ of membrane filtration in addition to the Septra CB. Background/Analysis: After the DOH designated the City's water supply source, the Elwha Ranney Collector, as groundwater under the influence of surface water (GWI), a BCA was signed in December, 2000, that specified the steps the City must take towards the construction of a water treatment {filtration) plant if the Elwha Dams were not removed by the federal government. The BCA also addressed the possibility of the City avoiding construction of a treatment plant if it can meet the criteria to remain unfiltered in the State version of the Surface Water Treatment Rule (SWTR), defined by WAC 246-290-690. As a result, the City and its consultant, CH2M Hill, are currently working on phase one of a Watershed Control Plan as part of meeting these filtration avoidance criteria. However, the City is still required under the BCA to submit by September an Evaluation of Filtration Alternatives and a Pilot Testing Protocol. Public Works and Utilities staffmet with CH2M Hill and discussed filtration alternatives. Treatment options were evaluated based on capital costs, O&M reqffrrements and associated costs, treatment capabilities, specific treatment requirements based on the Rauney Collector water quality data, and land use requirements. A September 10, 2001 memo to the UAC re: GWI Pilot Testing Page 2 of 2 determination was made that Pail's Septra CB, a cartridge filtration process, is the most appropriate treatment process for the City's water supply. The Septra CB process is not yet approved in this state by the DOH for municipal treatment, as it employs newly developed technology. As a result, the pilot testing of it will have to meet stringent Environmental Protection Agency (EPA) protocols for such situations. CH2M Hill and City staffbelieve that it is a viable technology and will propose that Septra CB be pilot tested when it submits the required Evaluation of Filtration Alternatives and Pilot Testing Protocol documents to the DOH. If the DOH requires that the City pilot test another treatment process concurrent with the Septra CB, CH2M Hill and City staff have agreed that a membrane filtration process would be the most Iikely alternate to pilot test. A short presentation will be made by the Utility Engineer, Stephen Sperr, to explain in more detail the Evaluation of Filtration Alternatives and the treatment processes involved. In order for the pilot testing's planning and preparation activities to proceed and to meet the time constraints of the BCA, Public Works & Utilities staff ask the Utility Advisory Committee to recommend that the City Council concur with CH2M Hill and staff's decision to pilot test the Septra CB treatment process in order to determine if it is the best municipal treatment facility to be installed if the Elwha dams are not removed. In addition, recommend that the City Council also allow the Public Works and Utilities Director to negotiate with the DOH a Pilot Testing Protocol that may or may not include membrane filtration in addition to Septm CB. N:~PROJECTS~20-18GWI\MEMOS\UAC9 11 01.wpd WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: September 10, 2001 TO: UTILITY ADVISORY COMMITTEE FRO~I: Doyle W. McGinley, Superintendent, Water/Wastewater Collection RE: MagnaDrive Proposal, Sewer Pump Station No. 4 313 Marine Drive In an effort to reduce electrical consumption, maintenance, and repair costs at the City's Sewer Pump Station No. 4, staff is investigating the potential for savings which may be realized by the conversion of the power couplings that drive the pumps. The Public Works and Utilities Department is in the process of evaluating a proposal for locally developed technology manufactured by MagnaDrive. We are also waiting on an energy analysis from the Bonneville Power Administration (BPA). There is a potential cost savings to the City pending the outcome of the energy analysis. Funding for this potential project would be allocated from the 2002 budget. As a secondary measure of the investigation to reduce costs, staffhas purposely sought to support local businesses in implementing an effective solution. That effort has led to a strong focus on locally engineered technology manufactured by MagnaDrive. Recently, two other local finns, Prime Marine and Angeles Electric, have teamed with MagnaDrive on a regional business-to-business response to the BPA energy crisis. Working with the City's economic development director and electric utility staff, a variety of potential facility retrofits using MagnaDrive products have been identified that can lead to reduced energy costs for local area employers. In response to the anticipated increases for electrical energy, magnetic coupler conversions are currently being researched and/or are being implemented by Daishowa, K-Ply, Portac, and the City's wastewater treatment plant, as well as several other major energy consumers throughout the country. A quote for $58,000.00 from MagnaDrive is attached. N:~PWKS\WWATER'O~IagnaDrivcPS4.wpd N:~PWKS\WWATER~'~agnaI~vePS4.w~ C 0 ~ la ¢3 R A T I 0 N ! ~.~. ' * Prelim/nary Quotation S~ ToMI $ 57.938.~ 1177 Fai~ew Ave. N. Se~Ue~ WA 98109-4418 (2~) 6~,-47~ FAX (2O6) 6{)4-4747 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: September 10, 2001 TO: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUl~JECT: Community Conservation Challenge/ENERGY STAR® Brand Awareness Summary.: The Bonneville Power Administration is sponsoring a region-wide initiative to provide reminders and incentives to residences and businesses to reduce energy use. The Northwest Energy Efficiency Alliance is sponsoring a region-wide public relations effort to increase ENERGY STAR® brand awareness. Recommendation: This is for information only, there is no action requested. Background/Analysis: The Bonneville Power Administration is sponsoring a program to provide information to our customers to do things to reduce their electrical energy use. The program is called the Community Conservation Challenge. The initial program began August 29, 2001 and will run through the end of this year. As part of the initial program, Bonneville will be asking our customers to sign and return a pledge card telling Bonneville what they are doing to save electricity. Customers that remm the pledge card will be entered into a contest and a chance to win an energy-efficient hybrid car. Additional information about this program is included in attachment A. The ENERGY STAR® Home Products Program, funded by the Northwest Energy Efficiency Alliance, provided media kits to Northwest print, TV and radio on September 6, 2001. The kits included information to stimulate news coverage to increase consumer awareness of the ENERGY STAR® brand, and highlighted savings benefits associated with purchasing qualified products. Along with a press release, "ENERGY STAR® is a rallying sign for the time", the kit included detailed fact sheets, savings calculations and a home illustration describing a variety of ENERGY STAR® qualified products that are now available and their benefits. The press release is included in attachment B. Attachment A BPA's Community Conservation Challenge (C3) August 15, 2001 The following outlines Bonneville Power Administration's (BPA's) Community Conservation Challenge initiative. Please contact Chuck Forman at 503-230-3432 for more information. Background In order to reduce the Oct.1, 2001, BPA wholesale power rate increase, BPA called on customers to reduce their loads on the system by 10 percent or more. Customers responded with commitments for 2,277 aMW in load reductions. For many of BPA's customers, achieving load reductions depends on consumers changing electricity use behavior and participating in conservation programs. If these load reductions do not materialize, BPA will likely need to add a true-up surcharge to its wholesale rates. BPA is starting a region-wide grassroots campaign known as the Community Conservation Challenge to promote energy awareness and encourage conservation. 1. What is the Community Conservation Challenge (C~)? C3 is a grassroots campaign sponsored by BPA that calls on Northwest citizens and businesses to find ways to reduce energy use without sacrificing comfort and convenience. It is made up of the following elements: A. A pledge card which asks citizens to pledge to take three new energy saving actions must be filled out. Ideas are listed on the card and people are encouraged to come up with their own as well. consumer2a.pdf B. The card is then mailed in; consumer cards to Fisher Broadcasting. Each card received is put into a drawing for a new energy-efficient hybrid car. The drawing will be held in December 2001, at the end of the challenge. C. A leadership council of influential citizens throughout the region will be asked to participate locally to give visibility and acceptance. D. Businesses will be asked to pledge in return for commendations in the media. E. Schools will participate during late September and October, with local prizes for classes with the highest percentage of pledges. F. A "Conservation Tip of the Week" will be featured in print and radio media across the region. 1 G. Media coverage of conservation activities will be sought region-wide. 2. The Pledge Card has a 1-800 number. Who answers those calls? The Energy Ideas Clearinghouse (EIC) will handle the 1-800 calls. The EIC will be able to describe the pledge and contest, send cards when requested, and direct consumers to information sources for energy efficiency. Their hours of service are being negotiated. 3. Where should the pledge cards by mailed? Consumer cards are to be mailed to Fisher Broadcasting, one of our media partners. The address is: Community Conservation Challenge 2000 SW First Ave., Suite 300 Portland, OR 97201 Business cards are to be mailed to BPA's Seattle office. 4. Why don't the pledge cards refer calls to the local utility? The campaign is an effort to help utilities reduce their load without adding greatly to the utility work/pad. While it is true that many utilities want their customers to call them rather than an 800-number, we do not want to generate dozens of contest calls to utilities that may not have the staff or time to handle the extra calls. The EIC will take the name of the caller's serving utility and refer the caller to that utility when the question is outside the range of the contest or simple energy efficiency tips. The EIC has many years of experience in assisting commercial and industrial clients with energy efficiency information. They will continue to refer residential consumers to their servicing utility when warranted. 5. The Pledge Card has the BPA logo. Why isn't the utility logo included? Pledge cards will be given out at a variety of sites such as grocery stores, Chamber of Commerce meetings, scout meetings, church and synagogue events, as well as utility lobbies or in a mailer. The first wave of pledge cards in early September will be distributed as newspaper inserts, which is a very cost-effective method. If a utility wishes to distribute Pledge Cards, the utility can add its logo to a specific blank space on the pledge cards by using a stamp or a sticker. The printing costs and logistics prohibited us from putting individual utility logos on pledge cards during initial printing. 6. What is the local utility role in the C37 The short answer is simply cooperation in getting the Challenge to your consumers. We need information so we can refer callers back to the local utility if they have questions beyond those directly related to the Challenge. We need your help identifying community groups that we 2 can contact to promote the Challenge. We have specifically designed the Challenge so that local utilities are not burdened with staffing or other costs. Our hope is that our customer utilities will actively support and promote the Challenge. For instance, we prefer that BPA and the local utility jointly address community and business groups. Ideally utility staff or management could directly promote the Challenge using briefing and presentation materials provided by BPA. We hope utilities will consider featuring the Challenge in newsletters, provide web site information and links, provide pledge cards in utility offices and at community events or possibly as bill inserts. We will not directly contact local businesses without utility permission so we need your cooperation and hopefully your direct participation in engaging this important part of your communities. We want your ideas, feedback and active participation. You know your communities and consumers much better than we do. The local utility really is the key to making the Challenge a success at the local level. 7. Who is eligible to participate? By law, contests like the Challenge where prizes are given away must be broadly available. So all citizens in Oregon, Washington, Idaho and Montana must be eligible to win. We are targeting consumers and businesses served by BPA's load following customers because load reductions here directly contribute to reducing BPA's wholesale power rates. Special efforts are being made to develop other opportunities for those customers who live in California, Wyoming and Nevada that are not eligible to win the car. 8. What is the schedule for the Community Conservation Challenge? BPA staff will be discussing the Challenge with our utility customers during. August. Radio spots promoting the Challenge begin August 29. Pledge cards will be distributed via newspaper inserts beginning September 6, We hope to have active local promotional activities in September, October and November. Contest entries must be received by December 1, 2001. The drawing for the fuel efficient hybrid car is about December 15. 9. Is this all that is planned? No, the Community Conservation Challenge is working on other ideas and other sponsors to maximize the exposure and gain the most participation by people and businesses implementing conservation actions. As these develop we will let you know about them. If you have ideas please let us know. Cforman H:FileslCommuntiy Conservation Challenge.doc 8/14101 Keep the lights on. Protect Northwest jobs. ~ C 0 Id Id U N I T Y Savemoney! -~~ CONSERVATION w~ A NEW CAR! C H A L L E N G E ~ ,=,.,'~--~',.~,..,;,,'.,z. - ~ ,~, ; ¢ : ;: ~, ~,~ ~ Change your regularlight bulbs to · energy-efficient, compact fluorescent lights, Up for a challenge? !'] Encourage household members to f-'i turn appliances off when they aren't Take the Community Conservation Challenge and being used. Things like your TV, enter to Win a New Energy-Efficient Car! stereo, lights and computer. What's the challenge? S i J~'~i p I y d 0 3 t h in g s fRegularly use the air dry or energy saving feature on your dishwasher. to reduce electricity use, It's that easy! Electricity is still in short supply. Wise use of electricity is our 1~r When you replace an appliance, get an energy-efficient model which has best protection against a volatile energy market. Smart energy the ENERGY STAR® label. choices made one-at-a-time really add up. The power is in Keep the temperature on your air numbers and everyone can contribute. Take your conservation pledge now and help solve the Northwest energy crisis. conditioner no lower than 76° F. Start conserving today.I Keep the temperature of your ~,r- thermostat no higher than 65° F. Your job. your pocketbook, your very lifestyle could all be impacted. We're all in this together. ~.'~ Outside,-install motion detectors' or outdoor compact fluorescent .lights. .... ,]i,]¢~e2w$ :~[*~; ::'! / *: ' Using a screensaver doesn't save an ounce :,.: ~. Keep an eye out for energy savings of energj4 Turning a monitor off will conserve ¢-- and come up with your own :~,.'~.'..:.,,.',,'.: energy. It's a fact: a computer monitor uses conservation ideas{ almost as much energy as a refrigerator/ Check the boxes and tell us what you'll do. Send in this postcard to make your conservation pledge and be entered W i n a new ,o W/, a New Energy-Efficient Car. CAR! (~ I will install__ (number) new [~ I will keep the temperature on my Yest I'll do my part to save compact fluorescent lights in my air conditioner no lower than 76° E home. electricity by completing these three or ~ I will keep the temperature of my more new conservation activities start- ~1 I will encourage household thermostat no higher than 65° F lng today. Enter my name to win an members to turn appliances off energy-efficient car. when they aren't being used: [~ Outside, I will install motion Address E~ I will regularly use the air dry er [~ In our household, we have decided energy saving feature on my to: City dishwasher. State __ Zip ~] I have to replace an appliance soon. Phone I will get an energy-efficient model with the ENERGY STAR~ label. Take these simple steps to save energy, save money and save jobs. ~t, Use this as your reminder· Check the things you will do, and keep this card posted in a visible area in your home to remind you to conserve. ~ Two 75-Watt light bulbs will ~, ~ will install (number) ~ I will keep the temperature on my use as much energy new compact fluorescent lights air conditioner no lower than 76° F. in a year as a new in my home. ENERGY STAR~ ~ I will encourage household members to turn appliances off when they aren't being used: ~ Outside. I will install motion ~ TV '~; Stereo C Lights detectors or outdoor compact C PC Monitor ',~, PC fluorescent lights. [~ I will regularly use the air dry [~ In our household, we have decided ,ll, or energy saving feature on my to: For more information on the dishwasher. Community Conservation Challenge, call: '1-S00-962.973'1. [~l have to replace an appliance or,~s~ourweb slteat:www, bpa.gov/cc¢ (You can also p~int e copy of the Communit~ soon. I will get an energy- Conservation Chatlenge pleGge card from this efficient model with the ENERGY STAR® label. ;~...".,;.;.',;.,:., .~ COMIdUNITY [ PLACE CONSERVATION STAMP C HALLE N GE HERE Community Conservation Challenge cio 2000 SW First Ave. Suite 300 Portland, OR 97201 Attachment B Contact: Darcie Meihoff, Leopold Ketel & Partners for ENERGY STAR Home Products, (503) 295-1918 ex: 108 or darcie~leoketel.com For Immediate Release September 6, 2001 A HERO EMERGES IN BATTLE FOR INCREASED ENERGY EFFICIENCY ENERGY STAR® is a rallying sign for the time Homeowners across the No~&west are worried about rising energy costs. It's a fact - throughout the Northwest, homeowners are searching for ways to increase energy efficiency and lower their utility bills. As part of this all-out effort, a hero is emerging. The ENERGY STAR label is quickly becoming a badge of honor for homeowners wanting to maximize energy efficiency and protect themselves against the escalating costs of energy use. "The ENERGY STAR label is simply the best way to ensure you're buying the most energy efficient products possible," said Margaret Gardner, Executive Director of the Northwest Energy Efficiency Alliance. "It represents tremendous savings when it comes to money, energy and protecting the environment." The Alliance, which promotes the ENERGY STAR label to Northwest consumers, is a non-profit group of electric utilities, state governments, public inierest groups and industry representatives. Through their funding of thc Northwest ENERGY STAR Home Products Program, they are committed to bringing affordable, energy-efficient products and services to the market, helping Northwest consumers realize long-term savings. The ENERGY STAR label, which can be found on more than 30 different categories of household products, signifies far greater energy savings than required under current federal standards - up to 50 pement more in some cases. Appliances, windows, compact fluorescent light bulbs and fixtures, home electronics and more bearing the ENERGY STAR label have met stringent standards for saving energy. Bottom line for consumers: Choosing ENERGY STAR qualified products has a significant impact on lowering energy bills. 2-2-2-2 Strength in numbers Experts estimate that by selecting ENERGY STAR qualified products, a typical household can cut its utility bills by a whopping 30 percent. And it's not just energy costs. Switching to ENERGY STAR qualified clothes washers and dishwashers also saves water. An ENERGY STAR qualified clothes washer alone can save up to 6,000 gallons of water a year, more than the average person will drink in a lifetime. That's especially important when considering the drought conditions seen by some Northwest areas recently. Windows that are twice as efficient as average windows produced just a decade ago, refrigerators that save $40 more every year compared to average 10 year-old models, lighting that uses 75 percent less energy- the numbers are staggering when comparing the benefits of selecting and purchasing ENERGY STAR qualified products. Homeowners seel~ t~rotection No doubt the marketplace is searching for some relief in the face of increasing energy costs. That's translating into big changes happening at the retail level. More consumers are looking for and buying ENERGY STAR qualified products and retailers are helping meet the demand by highlighting manufacturers and appliances that are among the most energy efficient. Nearly 1500 retailers in Idaho, Montana, Oregon and Washington carry ENERGY STAR qualified products. "It's one of the most frequently asked questions we hear these days. Consumers want to know just how energy efficient a product is before they buy it," said Lisa Rehbach, Senior Program Manager for the ENERGY STAR Home Products Program. "Shoppers understand that they can't just look at the initial purchase price, they have to take into consideration how much those products are going to cost to operate year after year. As energy prices increase, that's a huge variable." ENERGY STAR qualified products like clothes washers that reduce utility bills by up to $90 each year and compact fluorescent light bulbs that save at least $30 in energy costs for each bulb that replaces an incandescent bulb are big selling points these days. According to Rehbach, the cost of the energy it takes to mn both small and large home products adds up, which is why consumers should look for the ENERGY STAR label 3-3-3-3 By doing so, homeowners can guard against energy waste that they may not even know is happening. For example, Americans spend more than $1 billion each year to power their TVs and VCRs when they are switched off. Nearly 90 percent of all electricity used to power audio products is used after the products are turned off. Switching to ENERGY STAR home audio and DVD products can cut down on this waste by up to 75 percent. "The ENERGY STAR label gives people confidence that the products they choose are the most efficient possible," said Rehbach. "You don't have to be an engineer or an energy expert to make comparisons; that label guarantees your energy savings will be maximized," Performance counts According to Rehbach, while homeowners are searching for energy efficiency, performance is equally, if not more, important. Oftentimes, ENERGY STAR qualified products are the most advanced, not only for energy savings, but also when it comes to technology and performance. Many ENERGY STAR qualified appliances have consistently been ranked among the top performing models by leading consumer product rating sources. There are other benefits too. ENERGY STAR qualified CFL bulbs operate 80 percent cooler than standard incandescent light bulbs, helping prevent burns and fire danger. Thanks to improved compressors and insulation, ENERGY STAR qualified room air conditioners run q~eter than many conventional models. The savings march on Wl~le saving money and energy without sacrificing performance is important, the ENERGY STAR label also represents an environmentally friendly option. The typical house adds more greenhouse gas (carbon dioxide) pollution to the atmosphere than the average car via energy consumption each year. Experts estimate that if all households and businesses in the U.S. used ENERGY STAR qualified products, the reduction in greenhouse gas emissions would be equivalent to taking 17 million cars off the road every year. Easing the burden on natural resources and helping prevent air pollution are all important benefits of using ENERGY STAR qualified products. 4-4-4-4 "It's easy to be more energy efficient by looking for and buying ENERGY STAR qualified products," said Rehbach, "When you consider the benefits, buying ENER(IY STAR means buying smarter." The ENERGY STAR label was created to help consumers easily identify products that save energy, money and help protect the environment. ENERGY STAR was introduced by the U.S. Environmental Protection Agency (EPA) in 1992 as a voluntary labeling program designed to identify and promote energy efficient-products in order to reduce carbon dioxide emissions. For complete lists of ENERGY STAR qualified products, retailers and manufacturers as well as energy saving information, call 1-888-373-2283 or log onto: www.energgstar, gov. #### For a [ollow-up story or broader industry perspective~ or to line up interviews with manu[acturers or local retailers~ please contact ~garcie Meihot~ (505) 295-1918 ex:lO8 or darci~]eoketel, cotn. WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: September l 0, 2001 To: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT: Amendment to Purchase of Conservation Agreement Summary,: Acceptance of the amendment to the Purchase of Conservation Agreement would enable the City to provide up to $500,000 to its commercial and industrial customers for energy efficient improvements. Recommendation; Recommend City Council accepts revision 1 of project I and the addition of project 2 under the Purchase of Conservation Agreement with the Bonneville Power Administration. Backg.round/Analysis: On April 17, 2001, City Council authorized the Director of Public Works to implement a conservation program that qualifies for the Bonneville Power Administration (BPA) Conservation and Renewables Credit Discount (C&RD). Staff has developed a program that qualifies for the BPA C&RD, which has been available since June 1, 2001. The City's C&RD is based on BPA power purchases at the rate of Va mill per kWh which represents about $315,000 per year over the next five-year period. On June 18, 2001, the City Council approved the BPA Purchase of Conservation Agreement as part of its Conservation Augmentation program. Under this Agreement, the City can provide up to $200,000 for lighting conservation projects to local businesses through September 30, 2003. Available lighting conservation measures include modification or replacement of existing interior and exterior fixtures and controls. In response to the City's request to provide its commercial and industrial customers incentives for energy conservation measures in addition to lighting projects, BPA offered the City an amendment to the Purchase of Conservation Agreement. The amendment includes a revision for record keeping and the addition of a commercial and industrial program that is available for a variety of energy conservation improvements that are not available under the C&RD or current Purchase of Conservation Agreement, including but not limited to MagnaDrive motor technology improvements. A copy of the amendment is attached. Commercial and industrial customers seeking an incentive from the City for energy conservation improvements under the amended Agreement must prepare a project proposal. The project proposal must include an energy analysis, method for determining and verifying energy savings, and estimated cost. Each project proposal will be submitted to BPA for review and acceptance. The customer shall pay the cost of a project proposal. September 10, 2001 Utility Advisory Committee Memo RE: Amendment to Purchase of Conservation Agreement Page 2 After BPA accepts a project proposal the City would offer the customer an incentive to install the energy conservation improvements. The incentive would be based on $0.18 per kWh saved not to exceed 80% of total project cost. The City will be reimbursed for its administrative costs under the new program in an amount not to exceed 15% of the incentive paid to the customer. The City has until September 30, 2001 to accept the amendment to the Agreement. The City Attorney has not reviewed the amendment. N:~PWKS~LIGHT~CONS',CONSERVATION7.DOC Department of Energy Bonneville Power Administration P.O. Box 3621 Portland, Oregon 97208-3621 POWER BUSINESS LINE August 31,2001 In reply refer to: PSW-6 Mr. Scott McLain Deputy Director of Power Systems The City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362-0217 Dear Scott: Enclosed for the City's consideration are two originals of Revision No. 1, Project 1 and the addition of Project 2 to Exhibit A of the City's Purchase of Conservation Contract No. 01ES-10390. The revision to Project 1 puts this project into a format that. allows for the addition of future Projects. The revision also add language about record keeping in Section 3. The addition of Project 2 provides for the City's implemention of a Commercial and Industrial Program under this Agreement. Under this Project 2, Bonneville Power Administration (BPA) will fund up to $500,000 of measures in the City's service area. If you find this contract action acceptable, please have sufficient copies signed to provide one for BPA and as many other copies as the City needs and return them to this office. The offering of this contract expires 30 days from the date of this letter. If you have any questions on the contract, please contact me at (503) 230-3432. Sincerely, Charles W. [orman, .Tr. Account Executive Enclosures Exhibit A: Projects, Energy Savings & Project Budgets Revision No. 1, Project 1: Limited Standard Offer for Commercial Lighting This project revision puts Project 1 into a format that allows for the addition of future Projects. 1. Project Description This Limited Standard Offer (LSO) provides rebates for retrofits of lighting in commercial buildings. The Measures eligible for payment under this LSO include only those listed in the Verification Report. In addition, a 25% watt reduction for each Project is required to receive the rebate. Port Angeles shall ensure that all materials, including PCB ballasts, are disposed of in accordance with current environmental laws. Port Angeles shall implement a commercial sector lighting retrofit program designed to install the Measures listed in the Verification Report below. Port Angeles may implement the program using Port Angeles' staff or contractors to provide the services necessary to install the Measures. Port Angeles shah provide a work plan to Bonneville which includes (1) a brief description of Port Angeles' program, (2) method for determining eligible buildings, and (3) qualifications required for auditors, installers and inspectors. Bonneville shall review this work plan and upon acceptance, send written notification to proceed. 2. Implementation Period This LSO is available from the Execution Date of the Agreement, or amendment through September 30, 2003. 3. Energy Savings Verification Port Angeles shall inspect all installations to ensure Measures are installed correctly and the Measures meet the specifications listed in Section F of this LSO. Port Angeles shall complete and sign the Verification Report and attach the Wattage. Reduction Summary Sheet, or equivalent, for each Project and submit it with the invoice as described in section 4 below. Port Angeles shall retain all supporting documents for each Project that include, but are not limited to, purchase orders, subcontractor invoices, preproject estimates, or other related Project documents. Bonneville may review these records as provided for in this Agreement. Project records must be keep a minimum of three years following the termination of the Agreement. 4. Bonneville Payment & Invoicing Requirements Bonneville shall provide $200,000 for implementation of the LSO. Port Angeles may invoice Bonneville up to this total Implementation Budget for this LSO through September 30, 2003. If Port Angeles expends this Implementation Budget amount prior to September 30, 2003, Port Angeles may request additional Implementation Budget. Bonneville will review the request and may add additional funds to the Implementation Budget by modification of this Agreement. 01ES- 10390, The City of Port Angeles 1 of 6 Port Angeles may invoice Bonneville when Projects are complete, but no more often than once a month. Bonneville shall review and upon acceptance pay the reimbursements for Measures installed. Port Angeles shall, if requested by Bonneville, arrange for an on-site inspection by Bonneville of the Measures installed. 5. Program Requirements (a) The facility shah be non-residential and served by Port Angeles. Co) The rebate shall not exceed 100 percent of the actual total cost. (c) All retrofit Projects must reduce the connected lighting wattage by 25%. (d) Rebates are available for existing facilities only. (e) Specify Energy Star~ labeling if available. 6. Specifications for installation (a) Electronic Ballasts for Full Size Fluorescent Lamps (1) Listing: .The ballast must be listed on the most current Lighting Design Lab Specification Committee's Electronic Ballast List for Full Size Fluorescent Lamps. (2) General: All electronic ballasts shall meet the requirements of U.L. 935 and shah bear the appropriate U.L. label. (3) Warranty: The electronic ballast shah be warranted against defects in material and workmanship for three years. The warranty shall include either a $10.00 replacement labor allowance or complete replacement including labor by an agent of the manufacturer. (4) Mechanical Characteristics: Electronic ballasts shall have the same physical dimensions and mounting arrangements as those of their core and coil counterparts. (5) Electrical Characteristics: The electronic ballast shall withstand input power line transients as defined in ANSI C62.41. The ballast shah tolerate a line voltage variation of+/- 10%. (6) The power factor shah be 95% or higher. The lamp crest factor shall measure 1.7 or less for rapid start ballasts and 1.85 or less for instant start ballasts. 01ES.10390, The City of Port Angeles 2 of 2 Revision No. 1, Exhibit A, Project 1, Limited Standard Offer for Commercial Lighting (7) Total harmonic distortion of the input current to the electronic ballast shall not exceed 20% of the input current. (8) The electronic ballast shall be Class "A" sound rated and UL Class "P" thermally protected. (9) The electronic ballast shall comply with FCC rules and regulations Part 18 concerning the generation of both EMI (electromagnetic interference) and RFI (radio frequency interference). (10) Electronic ballasts shall operate the lamp at a frequency of 20 kHz or greater. (11) The ballasts shall start and operate standard lamps at 50 degrees F and energy savings lamps at 60 degrees F. Ballast case temperature shall not exceed 25 degrees C rise above a 40 degrees C ambient temperature. (12) The ballast shall be provided with an internal fuse to protect the electrical power supply from internal component failure. The ballast shall also be short-circuit protected in the event of miswiring. (b) Compact Fluorescent Low Wattage Fluorescent Ballasts This specification applies to magnetic and electronic ballasts of either integral or modular configuration operating 5 to 30 watt fluorescent lamps, regardless of shape or number of driven lamps. This specification does not apply to ballasts operating fluorescent lamps 2' and longer. (1) Listing: The ballast must be listed on the most current Lighting Design Lab Specification Committee's Electronic Ballast List for Low Wattage Fluorescent Lamps, (2) All baLlaste shall comply with Underwriters Laboratory (UL) requirements and shall boar the appropriate labels. (3) The power factor for all ballasts shall be 90% or higher, (4) Total harmonic distortion (THD) of the input current shall not exceed 33% of the fundamental 60Hz. current. (5) Electronic Ballasts shall comply with FCC rules and regulations Part 18, concerning Electromagnetic and Radio Frequency Interference (EMI and RFI) (6) Electronic ballasts covered by this specification shall withstand input power line transients as defined in ANSI C62.41. 01ES.lO390, The City of Port Angeles 3 of 3 Revision No. 1, Exhibit A, Project 1, Limited Standard Offer for Commercial Lighting (7) All equipment covered by the specification shall be Class "P" thermally protected where required by Code. (8) For all modular ballasts, the ]amp current crest factor (ratio of peak current to RMS current of the modulated waveform) shall not exceed 1.7 for rapid start ballasts or 1.85 for instant start ballasts. (9) The ballast shall be capable of starting the designated lamp at the minimum temperature established by the lamp manufacturer. Integral units shah state minimum starting temperature. (10) All ballasts shall be Class "A" sound rated, (c) Full Size Fluorescent Lamps: (1) Lamps shall be 1" in diameter T8, (2) Lamps shall have Rare Earth phosphor coating and have a minimum CRI of 80. (d) Fluorescent Luminaires: Components or luminaires shall be U.L, Listed or classified. (e) Compact Fluorescent Lamps: Lamps shall have Rare Earth phosphor coating having a minimum CRI of 80. (f) Screw-in Compact Fluorescent: (1) Total harmonic distortion (THD) of the input current shall not exceed 33% of the fundamental 60 Hz. current. (2) Lamps shall meet Energy Star® requirements. No equivalents allowed. (g) Compact Fluorescent Fixtures: (1) Components or luminaires shall be U.L. listed er classified. (2) Recessed downlights shall have a reflector specifically designed for the lamps. (3) Recessed downllghts shall be vented to provide convective cooling to the lamp. 01ES-10390, The City of Port Angeles 4 of 4 Revision No. 1, Exhibit A, Project 1, I.imtted Standard Offer for Commercial Lighting (h) HID Lighting: Luminaires and retrofit kits shall be U.L. hsted or classified per specLfic application, (e.g., exterior luminaires to carry a U.L. wet or damp label designation). (i) Occupancy Sensors: (1) Occupancy sensors shah be U.L. listed or classified. (2) Controlled luminaire wattage shall not exceed occupancy sensor electrical load capacity. (3) Occupancy sensors shah be provided with manual sensitivity adjustment or and an adjustable or fixed time delay during which controlled luminaires remain on after the space is vacated. Fixed time delay shah be at least 30 seconds and no more than 20 minutes. (4) Occupancy sensors shall be pro, vided with a minimum 3-year manufacturer warranty. (j) Programmable Thermostats (i) Programmable thermostat shah have deadband and 7-day setback capabilities; heat pump thermostats shall also have optimal start and emergency heat lockout features. (2) Programmable thermostats shah include a switch to manually activate the fan. The fan shall run continuously when this switch is on. The fan shall run only when the thermostat calls for heating or coohng when this switch is off. (3) Programmable thermostats shah be provided with a battery back up. 7. Tables The attached Table 1: Verification Report, and Table 2: Wattage Reduction Summary Sheet are part of this Project. 01ES-10390, The City of Port Angeles 5 of 5 Revision No. 1, Exhibit A, Project 1, T.imited Standard Offer for Commercial Lighting THE CITY OF PORT ANGELES, UNITED STATES OF AMERICA WASHINGTON Department of Energy Bonneville Power Administration Account Executive Name (,"ri'~t/Type) Name · Charles W. Forroan, Jr. (Print/ ~pe) Title Date ~ ~/. ~c~ / Date ~ ~ 01ES-10390, The City of Port Angeles 6 of 6 Revision No. 1, Exhibit A, Project 1, l.lmlt~d Standard Offer for Commercial Lighting Exhibit A: Project, Energy Savings & Project Budgets Project 1: Limited Standard Offer for Commercial Lighting Table 1: Verification Report Existing Fluorescent Fixtures, with magnetic ballasts; And T12 lamos. 4' or less, change to: T8 lamps and electronicballasts with:l lamp 2to 41amps $15530[ I and T12 slimline lamps~ 5' to 8', change to: T8 lamps and electronic ballasts with: 2to41amps $40 ] ] 1 lamp $20 and T12 HO or VHO lamps, 5' to 8', change to: T8 lamps and electr°nic ballasts with: 2 t° 4 lamps $50 I1 lamp $40 I Existing Incandescent Fixture, change to: Compact Fluorescent, hard wired~ replaceable lamp $30 [ I Screw-in Compact Fluorescent, locking base, I I replaceable lamp $15 Screw in compact fluorescent $7 Existing Exit Sign, over 17 watts, change to: Less than 5 Watts (LED) $35 I ] Fluorescent Fixtures, 4' or less with Elect. Ballasts and T 8 lamps 2,3, or41amps $30 I 1 lamp $15 Fluorescent Fixture, .over 4' with Elect. Ballasts and T8 Laml~s 2, 3, or 4 lamps $40 I lamp $20 | Compact Fluorescent Fixtures, Hard Wired 5-17 watts nominal $35 I Greater than 17 watts nominal $45 Exit Signs Less than 5 Watts (LED) $30 High Pressure Sodium or Metal Halide Fixtures 100 W or less $70 101 W - 399 W $120 400 W or ~reater $200 01ES-10390, The City Port Angeles 1 of 2 Revision No. 1 Item Installed Total Rebate Rebate Occupancy sensors Wall-switch mount: 100 to 300 W $20 over 300 W $35 Ceiling or high wall mount, over 300 W $45 Programmable Setback Thermostat (with optimal start and emergency heat lockout) For I-rVAC systems with electric resistance heat or Heat Pum $50 Total Building Name and Address: Total Cost: $. kVt~h Savings: % Watt Reduction [] Watt Reduction Achieved [] All Equipment Meets Minimum Equipment Specifications [J The Rebate Items listed above have been installed and are operational Inspected and Approved by: Date: 01ES.10.390, The City of Port Angeles 2 of 2 Revision No. 1, Exhibit A, Project 1, Table 1: Veri~cation Report · o2 ~ ~ .~o '~ ~... ~,~ ~ o ~:~ Exhibit A: Projects, Energy Savings & Program Budgets Project 2: Commercial and Industrial Program 1. Project Description Port Angeles shall implement a commercial and/or industrial sector energy conservation program. Port Angeles shall follow the procedures and requirements described below to receive payment fi~3m Bonneville for Energy Savings delivered under this Agreement. Individual projects submitted under this Project 2 shall be referred to as Subproject A, Subproject B, etc. 2. Subproject Submission, Completion, and Acceptance (a) Port Angeles shall submit a Subproject proposal to Bonneville. A Subproject proposal shall include: (1) a'description of the Subproject, (2) the timeline to complete the Subproject, (3) the expected annual Energy Savings, (4) the methodology for determining Energy Savings (including assumptions used for calculating Energy Savings), (5) a plan for measuring and verifying the energy savings which shall include a description of how the energy use will be measured or calculated before and after the installation of the Subproject, (6) the estimated total Subproject cost, and (7) the total expected cost to Bonneville, (b) Bonneville shall review the Subproject proposal and provide written notice either: (1) accepting the Subproject proposal, (2) returning the Subproject proposal for modification, or (3) rejecting the Subproject proposal. The Parties agree that Bonneville's written acceptance of the Subproject proposal unilaterally amends the Subproject into this Project 2 of Exhibit A. (c) Port Angeles shall upon completion of a Subproject provide to Bonneville a completion report that includes, but is not limited to: (1) the actual Energy Savings (including the assumptions and formulas 01ES. 10390, The City of Port Angeles 1 of 4 (2) the actual total Subproject costs, any changes in equipment installation or operations from what was described in the Subproject proposal, and (3) other information relevant to the Subproject installation. (d) At Bonneville's request, Port Angeles shah make arrangements for a site visit to inspect the Subproject as part of Bonnev/lle's receipt and acceptance of the Subproject completion report. (e) Bonneville shall review the Subproject completion report and prov/de written notice either: (1) accepting the Subproject completion report, (2) returning the Subproject completion report for modification, or (3) rejecting the Subproject completion report. 3. Bonneville Payment (a) For each completed Subproject accepted by Bonneville, Port Angeles may submit an invoice to Bonneville. (b) Bonneville shall reimburse Port Angeles the lesser of $0.18 per actual first year kWh saved or 80% of the Subproject cost. If Port Angeles prefers to offer the Consumer less than 80% of the Subproject cost, Port Angeles shall specify the actual percentage for a specific Subproject in the Subproject proposal. Bonneville will reimburse Port Angeles the lesser of $0.18 per actual first year kWh saved or the percentage specified by Port Angeles for a particular Subproject. (c) The reimbursement paid for Energy Savings by Bonneville shall be paid to the Consumer. (d) Bonneville shall reimburse Port Angeles for administrative costs for each completed Subproject accepted by Bonneville. The administrative cost will not exceed 15% of the Subproject reimbursement paid to the Consumer. The total administrative reimbursement to Port Angeles shall not exceed 15% of the amount disbursed from the Implementation Budget. (e) Port Angeles may, if agreed to by Bonneville, request Bonneville's assistance in exchange for part of or all of this administrative payment. (f) Bonnev/lle shaH, upon receipt and acceptance of properly submitted invoice, pay Port Angeles in accordance with this Agreement 01E$-10390, The City of Port Angeles 2 of 4 Exhibit A, Project 2, Commerc/al and Industrial Program 4. Delivery Schedule Port Angeles may begin implementation of Project 2 upon execution of this Agreement. Port Angeles may submit Subproject completion reports to Bonneville under this Project 2 through September 30, 2003. 5. Estimated and Actual Energy Savings The Energy Savings methodology for each Subproject shall be described in the Subproject proposal per sections 2(a)(4) and 2(a)(5) of Project 2. The actual Energy Savings for each Subproject as shown in the completion report shall be the basis for the payment from Bonneville. Bonneville may review Project and Subproject records as provided for in this Agreement. Project and Subproject records must be keep a minimum of three years following the termination of the Agreement. 6. Implementation Budget Bonneville shall make available to'Port Angeles an Implementation Budget of $500,000 for Project 2. For each Subproject proposal accepted by Bonneville, a portion of the Implementation Budget available for Project 2 shah be allocated to that Subproject. Port Angeles may continue to submit Subproject proposals until. the Implementation Budget is fully allocated. 7. Eligibility Requirements (a) Subprojects with simple energy paybacks of one year or less shall not be eligible for reimbursement from Bonneville under Project 2, (b) Subprojects must contribute to a reduction of the amount of power purchased by Port Angeles from Bonneville under Power Sales Contract No. 00PB- 12054. (c) Only commercially available Measures shall be eligible for reimbursement under Project 2. (d) All non-residential facilities are eligible for participation in Project 2. (e) Bonneville will not reimbursement Subprojects under Project 2 for Measures that have been paid for under another Bonneville program. (f) Bonneville shall not pay for any Subproject where the equipment to be installed has already ready been purchased. (g) Modification to equipment that has been retired in place is ineligible for reimbursement from Bonneville under Project 2 unless it is under restoration for installation in a new or expanding facility provided that an acceptable baseline for determining Energy Savings can be established. 01ES-10390, The City of Port Angeles 3 of 4 Exhibit A, Project 2, Commercial and Industrial Program THE CITY OF PORT ANGELES, UNITED STATES OF AMERICA WASHINGTON Department of Energy Bonneville Power Administration Account Executive Name (Print/Type) Name Charle~ W. Forman, Jr. (Print / 7~ype) Title Date Date 01ES- 10390, The City of Port Angeles 4 of 4 Exhibit A, Project 2, Commercial and Industrial Program WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: Scpternber 10, 2001 To: UTILITY ADVISORY COMMITTEE FROM: LaiTy Dunbar, Power Resources Manager SUBJECT: Compact Fluorescent Lamp Coupon Agreement Amendment Summary,: The Bonneville Power Administration offered the City an amendment to the ENERGY STAR® Labeled Compact Fluorescent Lamp Coupon Agreement to include torchiere floor lamps. Recommendation: Recommend To City Council that the Mayor be authorized to sign the amendment to the ENERGY STAR® Labeled Compact Fluorescent Lamp Coupon Agreement. Background/Analysis: On April 17, 2001, City Council approved the ENERGY STAR® Labeled Compact Fluorescent Lamp Coupon Agreement. Coupons, redeemable in the amount of $6 each, offset a customer's cost to purchase ENERGY STAR® Labeled Compact Fluoresceut Lamps (CFL's). CFL's use about 1/4th of the energy of an incandescent lamp of similar light output. For example, a 100-watt incandescent lamp can be replaced with a 27-watt CFL while maintaining the same light output. Bonneville hired a clearinghouse contractor that provides the coupons to the City inelud'mg edunational materials and a list of participating retailers. The City received and distributed two coupons to each of its customers as inserts to utility bills during June and August of this year. Participating local retailers include Hartnagel Building Supply, Swains General Store, Wal Mart, Thurman's Electrical and Plumbing Supply, Sunset Wire & Rope, and Angeles Millwork & Lumber Co. The clearinghouse handles redemption of the coupons for the retailers. The clearinghouse also provides a payment to the City in the amount orS1 per redeemed coupon to offset the City's cost of marketing and administration of the program. Bonneville offered the City an expansion of the current Agreement to allow a $15 coupon for ENERGY STAR® Labeled torchiere floor lamps in addition to ENERGY STAR® Labeled CFL's. Subject to City acceptance of the amendment, the torchiere and CFL coupons would be inserted into the November utility bills and be redeemable through December 31, 2001. A copy of the amendment to the ENERGY STAR® Labeled Compact Fluorescent Lamp Coupon Agreement is attached. The City Attorney has not reviewed the amendment. Department of Energy Bonneville Power Administration 909 First Avenue, Suite 380 Seattle, WA 98104 ENERGY EFFICIENCY September 4, 2001 In reply refer to: PNF/Seattle Mr. Larry Dunbar, Power Resource Manager City of Port Angeles 321 East Fifth Street P.O. Box 1150 Port Angeles, WA 98362 Dear Larry: The Bonneville Power Administration has initiated the next round of the Compact Fluorescent Lighting (CFL) Coupon Campaign. The round includes a Torchiere Compact Fluorescent Lamp (TFL) Coupon option providing a $15 TFL coupon to your members during the October 1 - December 31, 2001 period. Both utility interest and the significant energy savings drive this offer. For example, a 63-watt TFL provides the same level of illumination as a 300-watt halogen lamp with resulting energy savings of 246 kWh. If you would like to participate in the TFL Coupon Campaign, please sign the enclosed Amendment. In this Amendment, indicate the number of CFL and TFL coupons you are requesting. If you are only interested in participating in the CFL portion of the Coupon Campaign, you do not have to sign the Amendment and can order the CFL coupons as in previous rounds. Please contact me if this is the option you prefer. The expiration date of Round 3 of the CFLFFFL Coupon Campaign is December 31, 2001. Round 3 will include the following: a. Up to two CFL $6 discount coupons (+10%) per consumer billing account for ENERGY STAR® labeled bulbs rated ] 3-watts or greater; and b. One TFL $15 discount coupon per consumer billing account for ENERGY STAR labeled torchiere floor lamps rated 50-watts or greater. You may order the TFL coupons beginning immediately and expect the coupons to be sent out to you wRhin 21 days of receipt of your signed Amendment by Bonneville. If you only want to participate in the CFL portion of Round 3, you will receive these coupons 21 days after you place your order with me. We will continue to use your utility's logo on the coupons. 2 To expedite the TFL coupon printing process, you may FAX your signed Amendment to me at 206.220.6805. However, you will need to also mail in the original. Should you have any questions about the TFL Program Agreement, please call me at 206.220.6775. Sincerely, Energy Efficiency Representative 206.220.6775 1 Enclosure: Amendment No. 1, Contract No. O1ES-11M78 Amendment No. I Contract No. 01ES-10478 AMENDMENT executed by the BONNEVILLE POWER ADMINISTRATION and THE CITY OF PORT ANGELES This Amendment to the ENERGY STAR® Labeled Compact Fluorescent Lamp Coupon Agreement (CFL Agreement) is executed by the Bonneville Power Administration (BPA) and THE CITY OF PORT ANGELES (Port Angeles). The Parties desire to amend the CFL Agreement for the purpose of providing ENERGY STAR® labeled compact fluorescent torchiere floor lamp (TFL) rebate coupons in addition to the ENERGY STAR® labeled CFL rebate coupons already offered under the CFL Agreement. The Parties believe that the use of ENERGY STAR® labeled compact fluorescent TFLs by Port Angeles' retail consumers will achieve energy savings and reduce the energy demands of Port Angeles. Port Angeles desires to promote and m~ke available the ENERGY STAR® labeled compact fluorescent TFL rebate coupons to its retail consumers as provided under this Amendment. Therefore, the Parties agree: 1. TERM This Amendment takes effect on the date signed by the Parties and shall continue through the term of the Agreement. 2. AMENDMENT OF AGREEMENT BPA and Port Angeles wish to amend the Agreement as follows: (a) Section 2(a) shall be deleted and replaced with the following language: Port Angeles agrees to participate in the ENERGY STAR® CFL and Compact Fluorescent TFL Coupon Rebate Program (Program) to be offered by BPA during the term of this Agreement. (b) Section 2(b) shall be deleted and replaced with the following language: In electing to participate in the Program~ Port Angeles shall provide BPA written notice of such election 21 days prior to the start date of their participation in the Program, a request for rebate coupons in an amount necessary to supply: (i) up to two CFL coupons per consumer billing account; (ii) one TFL coupon per consumer billing account; and ('~ii) an electronic form of their logo, if they wish it to appear on the coupon, and if one has not already been sent to BPA during one of the earher CFL Coupon Campaigns. (e) Section 2(e). Insert "and TFLs" between the words "CFLs" and "for". (fl) Section 2(d) shall be deleted and replaced with the fo]lowing language: ENERGY STAR®labeled CFLs of greater than 13-watts or greater; and TFLs of 50-watts or greater, are the only/llum/nation products that are eligible under the Program. (e) Section 3(a)(i) shall be deleted and replaced with the .following language: CFL rebate coupons with a face value of six dollars (up to two per consumer billing account), and TFL rebate coupons with a face value of fifteen dollars (one per consumer billing account) as requested by Port Angeles under section 2Co) of this Agreement; (/) Section 3(a)(ii) shall be deleted and replaced with the following language: One educational brochure for every TFL rebate coupon describing the ENERGY STAR® labeled CFLs and TFLs. (g) Section 3(a)('fii). Insert "and TFLs" between "CFLs" and Gin" and add at the end of this section "(Only applies to first time utility participants.)". (h) section 3(a)(iv). Add to the end of this section "(Only applies to first time utility participants.)". (i) Section 4(a)(i). Insert the words "and TFLs" between the words "CFLs and "who". 3. SIGNATURES The signatories represent that they are authorized to enter into this Amendment on behalf of the Party for whom they sign. (Signature / Date) (Signature ! Date) John B. Pyrch, Acting V.P. EE Name~it]e Nam~Title Bonneville Power Administratio~ A~ency Name Uti~ty Name 905 N.E. llt~ Ave. Portland. OR 972~2 Agenc~ Address Utility Addres~ Amendment No. 1, 01ES- 10478 2 BPA CFL / TFL Energy Efficiency Representative Utility CFL Contact: Shannon K. Greene, Energy Efficiency Rep. Name Name/Pirie Bonneville Power Adminis~rati0n, I~E Agency Name UtilRy Name 909 First Avenue, Suite 380 Ad~s Utility Addrsss Telephone: (206) 220-6775 Telephone: Fax: (206) 220-6805 Fax: E-Msil: skgreene~boa.~ov E-Maih BPA CFL Program Manager: Utility ENERGY STAR® Contact (if any).: Donald J. Davey, COTR. Name~Title Nam~/Titl~ Bonneville Power Administration, EE Telephone: Agency Name 905 N.E. 11~ Ave. Portland. OR 97232 E-Mail: Telephone: (503) 230-3124 E-Mai~: didavev~bna.gov FAX: (503) 230-4550 Number of Accounts: Number of Torchiere Coupons Requested: (Maximum: one per account) Number of CFL Coupons requested: (Maximum: two per account plus 10%) ANY SPECIAL Requirements/requests - size of coupon, delivery to other than the utility contact, etc): Amendment No. I, 01ES- 10478 3 © c .g ._~ © Low income senior discount worksheet Low Income Disabled Discount Worksheet 1 0-6,696 0-8,532 30% 6,697-8,352 8,353-10,468 20% 8,353-9,800 10,469-11,620 10% 9,801-10,680 11,621-13,056 5% 2 0-8,988 0-11,244 30% 8,989-11,244 11,245-13,956 20% 11,245-13,956 13,957-15,624 10% 13,957-15,624 15,625-16,956 5% 3 0-11,316 0-14,148 30% 11,317-14,148 14149-17844 20% 14,149-17,844 17,845-20,027 10% 17,845-20,027 20,028-22,116 5% 4 0-13,632 0-17,04(~ 30% 13,633-17,040 17,041-21,493 20% 17,041-21,493 21,494-24,132 10% 21,494-24,132 24,133-28,640 5% 5 0-15,948 0-19,944 30% 15,949-19,944 19,945-22,296 20% 19,945-22,296 22,297-24,936 10% 22,297-24,936 24,937-31,176 5% 6 0-17,868 0-22,848 30% 17,869-22,848 22,849-28,337 20% 22,849-28,337 28,338-31,440 10% 28,338-31,440' 31,441 -35,700 5% 7 0-20,592 0-25,740 30% 20,593-25,740 25,741-29,320 20% 25,741-29,320 29,321-32,184 10% 29,321 -32,148 32,185-40,236 5% 8 0-22,908 0-28,644 30% 22,909-28,644 28,645-32,637 20% 28,645-32,637 32,638-35,808 10% 32,638-35,808 35,809-44,760 5% *Number of Iow income disabled spread across all household sizes Analysis of increase to Iow income discount programs At current rates Total Disc Total Disc Difference 30% Max 40% Max Light $36,770.04 $54,347.29 ($17,577.25) Water $7,508.51 $12,313.88 ($4,805.37) Sewer $12,711.16 $20,648.20 ($7,937.04) Solid Waste $13,467.90 $21,260.19 ($7,792.29) Totals $70,457.61 $108,569.56 ($38,111.95) At new rates as of 10-01-01 Total Disc Total Disc Difference 30% Max 40% Max Light $39,102.13 $64,758.20 ($25,656.07) Water $7,508.51 $12,313.88 ($4,805.37) Sewer $12,711.16 $20,648.20 ($7,937.04) Solid Waste $13,467.90 $21,260.19 ($7,792.29) Totals $72,789.70 $118,980.47 ($46,190.77) At new rates as of 10-01-01 With increased discount on light only Total Disc Total Disc Difference 30% Max 40% Max Light $39,102.13 $64,758.20 ($25,656.07) Water $7,508.51 $7,508.51 $0.00 Sewer $12,711.16 $12,711.16 $0.00 Solid Waste $13,467.90 $13,467.90 $0.00 Totals $72,789.70 $98,445.77 ($25,656.07) CITY OF PORT ANGELES Residential Monthly Bill Comparison Proposed Option 1 - Customer Charge @ Present Level, Increase Energy Monthly Present Proposed Difference kWh Use Bill Bill Amount Percent 0 $11.00 $11,00 $0.00 0.00% 50 12.93 13.37 0.45 3.48% 75 13.89 14.56 0.67 4.86% 100 14.85 15.75 0.90 6.06% 200 18.70 20.50 1.80 9.62% 300 22.55 25.25 2.70 11.97% 400 26.40 30.00 3.60 13.63% 500 30.25 34.75 4.50 14.87% 600 34.10 39.50 5.40 15.83% 700 37.95 44.25 6.30 16.60% 800 41.80 49.00 7.20 17.22% 900 45.65 53.75 8.10 17.74% 1,000 49.50 58.50 9.00 18.18% 1,200 57.20 68.00 10.80 18.88% 1,300 61.05 72.75 11.70 19.16% 1,400 64.90 77.50 12.60 19.41% 1,450 66.83 79.87 13.05 19.52% 1,500 68.75 82.25 13.50 19.63% 1,600 72.60 87.00 14.40 19.83% 1,700 76.45 91.75 15.30 20,01% 1,800 80.30 96.50 16.20 20.17% 1,900 84.15 101.25 17.10 20.32% 2,000 88.00 106.00 18.00 20.45% 2,500 107.25 129.75 22.50 20.97% Present Bill Proposed Bill Customer Charge $11.00 /Mo. Customer Charge $11.00 /Mo. Energy Charge Energy Charge Usage $0.03850 /kWh All Usage $0.0475 /kWh CITY OF PORT ANGELES General Service Monthly Bill Comparison Proposed Option 1 - Customer Charge @ Present Level, Increase Energy Monthly Present Proposed Difference kWh Use Bill Bill Amount Percent 100 $18.86 $19.78 $0.92 4.86% 200 22.72 24.56 1.84 8.10% 300 26.58 29.34 2.76 10.38% 400 30.44 34.12 3.68 12.09% 500 34.30 38.90 4.60 13.41% 600 38.16 43.68 5.52 14.47% 700 42.02 48.46 6.44 15.33% 800 45.88 53.24 7.36 16.04% 900 49.74 58.02 8.28 16.65% 1,000 53.60 62.80 9.20 17.16% 1,500 72.90 86.70 13.80 18.93% 1,750 82.55 98.65 16.10 19.50% 2,000 92.20 110.60 18.40 19.96% 2,500 111.50 134.50 23.00 20.63% 2,750 121.15 146.45 25.30 20.88% 3,000 130.80 158.40 27.60 21.10% 3,500 150.10 182.30 32.20 21.45% 4,000 169.40 206.20 36.80 21.72% 4,500 188.70 230.10 41.40 21.94% 4,750 198.35 242.05 43.70 22.03% 5,000 208.00 254.00 46.00 22.12% 5,500 227.30 277.90 50.60 22.26% 5,750 236.95 289.85 52.90 22.33% 6,000 246.60 301.80 55.20 22.38% Present Bill Proposed Bill Customer Charge Customer Charge Single Phase $15.00 /Mo. Single Phase $15.00 /Mo. Three Phase $37.50 Three Phase $37.50 Energy Charge Energy Charge Usage $0.03860 /kWh All Usage $0.0478 /kWh CITY OF PORT ANGELES General Service Demand Monthly Bill Comparison Proposed Option 1 - Increase Demand and Energy Charge Only Monthly Monthly Present Proposed Difference kWh Use kW Use Bill Bill Amount Percent 30% Load Factor 10,000 46 $403.38 $478.47 $75.09 18.62% 12,000 55 $477.55 $567.55 90.00 18.85% 15,000 68 $587.54 $699.65 112.11 19.08% 20,000 91 $774.23 $923.89 149.66 19.33% 25,000 114 $960.92 $1,148.12 187.20 19.48% 30,000 137 $1,147.61 $1,372.36 224.75 19.58% 40,000 183 $1,520.99 $1,820.83 299.84 19.71% 45,000 205 $1,705.15 $2,042.01 336.86 19.76% 50,000 228 $1,891.84 $2,266.25 374.41 19.79% 40% Load Factor 15,000 51 $544.53 $647.74 $103.21 18.95% 25,000 86 $890.08 $1,062.62 172.54 19.38% 50,000 171 $1,747.63 $2,092.18 344.55 19.72% 60,000 205 $2,090.65 $2,504.01 413.36 19.77% 70,000 240 $2,436.20 $2,918.89 482.69 19.81% 75,000 257 $2,607.71 $3,124.80 517.09 19.83% 85,000 291 $2,950.73 $3,536.63 585.90 19.86% 50% Load Factor 25,000 68 $844.54 $1,007.65 $163.11 19.31% 40,000 110 $1,336.30 $1,597.91 261.61 19.58% 50,000 137 $1,661.61 $1,988.36 326.75 19.66% 60,000 164 $1,986.92 $2,378.81 391.89 19.72% 70,000 192 $2,314.76 $2,772.31 457.55 19.77% 80,000 219 $2,640.07 $3,162.76 522.69 19.80% 90,000 247 $2,967.91 $3,556.27 588.36 19.82% 105,000 288 $3,457.14 $4,143.47 686.33 19.85% Present Bill Proposed Bill Customer Charge Customer Charge Single Phase $30.00 /Mo. Single Phase $30.00 /Mo. Three Phase $75.00 Three Phase $75.00 Energy Charge - All Usage Energy Charge - All Usage $0.02570 /kWh $0.031 /kWh Demand Charge Demand Charge All Usage $2.53 /kW All Usage $3.05 /kW CITY OF PORT ANGELES Non-Profit Tax Deductible Monthly Bill Comparison Proposed Option I - Customer Charge @ Present Level, Increase Energy Monthly Present Proposed Difference kWh Use Bill Bill Amount Percent 100 $19.32 $20.26 $0.94 4.86% 200 23.64 25.52 1.88 7.95% 300 27.96 30.78 2.82 10.06% 400 32.28 36.04 3.76 11.64% 500 36.60 41.30 4.70 12.84% 1,000 58.20 67.60 9.40 16.14% 1,500 79.80 93.89 14.09 17.66% 1,750 90.60 107.04 16.44 18.15% 2,000 101.40 120.19 18.79 18.53% 2,500 123.00 146.49 23.49 19.10% 2,750 133.80 159.64 25.84 19.31% 3,000 144.60 172.79 28.19 19.49% 3,500 166.20 199.08 32.88 19.79% 4,000 187.80 225.38 37.58 20.01% 4,500 209,40 251.68 42.28 20.19% 4,750 220.20 264.83 44.63 20.27% 5,000 231.00 277.98 46.98 20.34% 5,500 252.60 304.28 51.68 20.46% 5,750 263.40 317.42 54.02 20.51% 6,000 274.20 330.57 56.37 20.56% Present Bill Proposed Bill Customer Charge Customer Charge Single Phase $15.00 /Mo. Single Phase $15.00 /Mo. Three Phase $37.50 Three Phase $37.50 Energy Charge Energy Charge Usage $0~04320 /kWh All Usage $0.0526 /kWh Present and Proposed Bill Use Sin~J~e Phase 15asic Charge City of Port Angeles Lighting Rates City Owned Lights Current Proposed Per. cent Rates Rates increase 100 Watts or less $ 6.00 $ 7.20 20.00% More than 100 watts, but150 watts or less: $ 8.75 $ 10.50 20.00% More than 150 watts, but 200 watts or less: $ 9.75 $ 11.65 19.49% More than 200 watts $ 11.25 $ 13.50 20.00% Customer owned lights 100 Watts or less $ 4.50 $ 5.40 20.00% More than 100 watts, but 150 wafts or less: $ 5.00 $ 6.00 20.00% More than 150 watts, but 200 watts or less: $ 5.50 $ 6.60 20.00% More than 200 wafts $ 7.75 $ 9.25 19.35% PILOT TESTING OF WATER SOURCE FILTRATION OPTIONS Stephen Sperr Utility Engineer 9/10/01 GWI Status Summary · BCA requires submission of Evaluation of Filtration Alternatives by Sept. 24 ®BCA also requires submission of Pilot Testing Protocol by Sept. 24 · Elwha Heights Water Association has had adequate chlorine contact time provided by City since May 28 · interim disinfection requirements being met by Water Utility staff · DOH has given tentative approval to proceed with City's Filtration Avoidance Proposal Water SYstem Information 1 Evaluation of Filtration Alternatives · Five filtration alternatives were considered for the Elwha Ranney Collector: 1. Slow Sand Filtration 2. Direct Filtration 3, Precoat Filtration 4, Membrane Filtration 5. Membrane Cartridge Filtration Slow Sand Filtration · Large filter beds of sand - 2.2 acres required · Will have to cover because of no open water within 10,000 feet of airport · Not feasible because of filter area and cost to cover Direct Filtration · Rapid filtration rate through sand and anthracite coal · Most common, proven filtration technology · Chemical coagulation usually needed · Backwashing necessary Water SYstem Information 2 Precoat Filtration · Primarily for industrial and commercial uses · Uses thin layer of fine material such as diatomaceous earth (DE) as filter medium · Additional filter medium added during process · New filter coat needed for each filter cycle · Recently accepted treatment process · Membrane is a semi-permeable physical barrier · Water is forced through membrane - contaminants are kept from passing through (retained) · Membrane pore size varies and depends on what needs to be treated · Ultrafiltration (UF) or Microfiltration (MF) appropriate for Elwha supply Membrane Filtration Water SYstem Information 3 Membrane Cartridge Filtration · PALL Septra CB is new technology · Cor~sists of bank of PVC modules, each housing a synthetic membrane that filters out contaminants · Not DOH-approved for treatment of potable water yet · Modules retain filtered material, eventually replaced and thrown away Estimate ® Direct Filtration - $12.5 Million · Precoat Filtration - $12.8 Million · Membrane Filtration -$'13.5 Million · PALL Septra CB - $5 Million Estimates can vary from 50% under to 30% over Maintenance Costs Water SYstem Information 4 Non-Cost Criteria · August 27 meeting attendees evaluated alternatives using non-cost criteria such as: - track record - treatment effectiveness - chemical use - regulatory acceptance - operability . expandability - area requirements - solids disposal Cost to Pilot Test ® PALL's Septra CB - $10,000 - manufacturer to cover most costs · Membrane filtration - $200,000 - to test 2 or 3 different ones - City to cover most of the cost Conclusion · PALL's Septra CB chosen as treatment process to pilot test · Membrane filtration chosen as alternate treatment process to also pilot test if DOH requires Water SYstem Information 5 Schedule · City to submit Evaluation of Filtration Alternatives and Pilot Testing Protocol by September 24 · City to negotiate contract(s) with manufacturer(s) for pilot testing with assistance from CH2M Hill · Pilot testing to begin this fall and be completed by March 2, 2002 Costs · Approximately $40,000 spent so far for CH2M Hill work on GWl · Anticipate additional $45,000 for CH2M Hill through completion of pilot testing report · PALL's Septra CB contract for pilot testing - $10,000 · Membrane filtration contract(s) for pilot testing (if required) - $75,000 to $100,00 each Resources · CH2M Hill - detailed engineering · PW/Utility Services - project management and engineering review · Water Quality Technicians - ensure GWI interim requirements continue to be met; assist in pilot testing ®Water Field Crew - assist in setting up pilot testing infrastructure Water SYstem Information 6 (~) Water Processing Septra® CB Filtration Systems Description Septra® CB microfiltra[ion Membrane Systems are desi§ned to meet requirements for high removats of Giardia and Cryptosporidium by integratin9 with existin9 infrastructure or as new, stand-alone water treatment facilities. · Low Cost Upgrade · Small Footprint · Operator Friendly · No Liquid Waste Discharge · Simple, Modular Design The drinking water professional can count on Septra CB to meet treatment challenges for removal of Giardia and Cryptosporidium. Septra CB Filter Module Septra CB Systems Giardia and Cryptosporldium - 4 Log Removal Ideal for Low-Flow Installations High Pressure Design (150 psi) Chlorine Compatible (to 5 mg/L) 100% Recovery Integrity Certified at the Factory and Integrity Testable On-Site Photomicrograph of PES Membrane. Septra CB System Applications · Groundwater Under the Influence of Surface Water · Surface Water, Post Sand Filter · Prefilter to Reverse Osmosis · Barrier to Cysts and Oocysts Septra CB Filter Rack SYstem Filtration, Separation. Solution.~ Septra CB Module/Systems Typical Septra CB Applications · Septra CB microfiltration modules are high area, · Removal of Giardia, Cryptosporidium and other particles disposable membrane filters from ground waters under the influence of surface water · Small footprint, modular design, simple operation (without re-pumping) - Low cost operation and long filter service life · A final barrier for cyst disinfection at conventional water treatment plants · Easy upgrade: readily integrates with existing · Filtration of water withdrawn from uncovered distribution infrastructure for ground water wells or water reservoirs to remove Giardia and Cryptsporidium treatment plants Module Specifications Membrane O.D. and Lengths 6 inch (15.2 cm) o.d, x 40 inch (102 cm) length Membrane Area 150 ft2 (13.9 mr) Membrane Medium polyethersulfone Membrane Support Medium, Core, End Caps, and Outer Wrap polypropylene Membrane Removal Ratin9 1.0' micron Module Housing polyvinylchloride Module Clean Water Pressure Drop 3.5 psid @ 50 gpm (0.24 bar @ 11.3m~/h) Maximum Inlet Pressure 150 psi (10.3 bar) Maximum Differential Pressure 40 psid (2.8 bar) Maximum Operating Temperature 90°F (32°C) Maximum Filtered Water Flow Per Module 50 gpm (11.3 m3/h) Chemical Compatibility Chlorine 5 mg/L (continuous) Chloramines 8 mg/L (continuous) VOCs <30 pg/L pH Range 5-9 units · Tested per Pall standard F-2 efficiency protocol ~ Water Processing 2200 Northern Boulevard Visit uS on the Web at www, pall.com/water East Hills, New York 11548-1289 Select-A-FAX* 800.664.7255 888.873.7255 toll free for the latest information delivered to any fax machiee, anywhere in 516.484.5400 phone the world. This automatic system operates 24 hours a day, seven 516.484.3216 fax days a week. Cell 1.516,942.0523 from outside the USA.