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ORD 33917 - Grant cable television franchise to US WEST Communications Inc _ 1 o . '' , /-e-/,3_37 (k-/-?-11r,iefl[T-..c Law Department c4li +�„-,Ai Omaha/Douglas Civic Center ti „ 1819 Farnam Street,Suite 804 z I� �- a Omaha,Nebraska 68183 0804 tA ti r (402)444-5115 °R'�tD FeBa°r4� Telefax(402)444-5125 City of Omaha Herbert M.Fide Hal Daub,Mayor City Attorney SW . lQ June 11, 1996 : - �' c rri ---y CD rri t"5 f c;.:.; Honorable President 1.. :F c") +e Cp and Members of the City Council, NI The attached Ordinance is prepared at the request of Councilmember Takechi, Chairman of the " Council Cable Television Committee. The Ordinance grants US WEST Communications, Inc., a franchise to operate a cable television system in certain areas of the City and approves a Franchise Agreement. US WEST Communications, Inc., is a wholly-owned subsidiary of US WEST, Inc. If approved, the franchise would commence on or about August 30, 1996, and continue until September 3, 2010. Since August, 1995, US WEST Communications, Inc. (USWC), has been conducting a video dialtone trial in portions of Omaha. This system offers video programming services similar to those offered by the City's franchised cable television operators, but operates under the regulation of the Federal Communications Commission and separate federal law. The video dialtone trial is scheduled to end August 30, 1996. The Telecommunications Act of 1996 repealed that authorizing legislation and gives operators such as USWC the option to seek cable television franchises from the local governing entity. USWC has chosen that option and submitted an application for a franchise covering only the portion of the City currently served by its video dialtone system. On March 19, 1996,the City Council adopted a Resolution directing the Cable Television Advisory Committee to commence negotiations with USWC for the grant of a franchise. Those negotiations have been completed and a Franchise Agreement has been prepared.'The Cable Television Advisory Committee recommends the franchise be granted and the Franchise Agreement be approved. The Agreement is patterned after the franchise agreements with Douglas County CableVision and United Cable of Sarpy County which operate in areas annexed into the City. All three of these agreements, in turn, are similar to the agreement with Cox Cable. The Agreement requires that ' USWC pay a 5% franchise fee; provide the services identified in its application; and interconnect its system with the Cox Communications cable system to provide community and governmental access programming to its subscribers. • • . Honorable President and Members of the City Council Page-2- r Approximately 3,900 USWC subscribers currently live within the City and will be benefited by this franchise. Approximately 16,000 additional subscribers live outside the City. The franchise extends only to identified portions of the City and will be extended to include the additional subscribers only upon annexation of these areas. The areas within the franchise are west of Interstate 680 between Harrison Street and Ida Street. A map of the areas is included with the application submitted to the City Clerk. The Telecommunications Act of 1996 also created a new video programming regulatory scheme called the "open video system". The FCC is currently drafting regulations that will control open video systems and is expected to issue those regulations in August, 1996. USWC has informed City staff and the Advisory Committee that it may,in the future,choose to become an open video system and discontinue operating under its cable television franchise. We do not know what, if any, city regulation of such a system will be allowed by the FCC. To account for that possible change,the Agreement provides that all franchise provisions which are not prohibited or superseded by federal law or FCC regulation will continue in effect. USWC will then come back before the City Council for approval of a new open video system agreement. Respe 1 submitted, ap ?()e-`-" s Thomas O. Mumgaard Assistant City Attorney P:\LA W\3807.SAP • • ORDINANCE NO. 3 3 9/7 1 AN ORDINANCE to grant a cable television franchise to US WEST Communications, Inc., 2 permitting it to operate a cable television system within certain areas of the City of Omaha; 3 to provide that this franchise shall be subject to compliance with the law and the provisions 4 of a Franchise Agreement; to approve the Agreement setting forth terms and conditions of 5 the franchise;to authorize the Mayor and the City Clerk to execute and attest, accordingly, 6 the Agreement; and to provide the effective date hereof. 7 WHEREAS, on April 15, 1996,US WEST Communications, Inc., submitted an application 8 for a franchise to operate a cable television system within certain areas of the City of Omaha and 9 subsequently executed the attached Agreement; and, 10 WHEREAS,pursuant to federal law and regulations issued by the Federal Communications 11 Commission,US WEST Communications,Inc., is currently offering video programming in certain 12 areas of the City of Omaha; and, 13 WHEREAS, federal law, state law, and the Omaha Municipal Code authorize the City 14 Council to grant a cable television franchise to US WEST Communications, Inc.; and, 15 WHEREAS,the Omaha Cable Television Advisory Committee has reviewed and evaluated 16 the application and Franchise Agreement and recommends the franchise be granted; and, 17 WHEREAS,based upon this review,the application,and the Franchise Agreement,this City 18 Council finds that it is in the best interests of the City that US WEST Communications, Inc., be 19 granted a franchise to operate a cable television system within the City and the attached Franchise 20 Agreement should be approved. } . r F• ORDINANCE NO. 33 9/7 PAGE -2- 1 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA: 2 Section 1. That a franchise for a cable communications system within the City of Omaha is 3 hereby granted to US WEST Communications, Inc., subject to compliance with the law, including 4 the Omaha Municipal Code, and the terms, conditions, and obligations of the Franchise Agreement, 5 attached hereto, and as may be subsequently amended. 6 Section 2. That the attached Agreement between the City of Omaha and US WEST 7 Communications, Inc.,to operate a cable television system is hereby approved 8 Section 3. That the Mayor and City Clerk are hereby authorized to execute and attest, 9 respectively,the attached Agreement. 10 Section 4. This Ordinance shall be in effect and full force fifteen(15) days from and after 11 the date of its passage. INTRODUCED BY COUNCILMEMBER o APPROVED i MAY• ' OF THE CITY OF OMAHA PASSED JUN 2 5 19% 9 ATTEST: • Aor IT LERK O THE CITY OF OMA APPR AS TO FO • ASSISTANT CITY A T Y P:\LAW\3805.SAP AGREEMENT THIS AGREEMENT, made and entered into thisQ5 y of 9_, by and between the CITY OF OMAHA, a Municipal Corporation,hereinafter referred to as "City", and US WEST COMMUNICATIONS, INC., a Colorado corporation presently doing business in Douglas County,Nebraska, hereinafter referred to as "USWC." RECITALS A. USWC is presently operating under the FCC video dialtone regulations issued in CC Doc #87-266 in certain areas of the City of Omaha pursuant to authority granted by the Federal Communications Commission; and, B. USWC has submitted to the City an application seeking a franchise to provide cable communications services within these areas; and, C. After due consideration, analysis and deliberation,the City Council has found that the award of a franchise to USWC,pursuant to its application and according to the terms and conditions of this Agreement,to be in the best interest of the City and its residents. IN CONSIDERATION of the rights and obligations set forth herein, the parties agree that the following terms and conditions shall apply through the term of this Agreement. ARTICLE I DEFINITIONS For the purpose of this Agreement,the following terms,phrases,words and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in 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 word "shall" is mandatory and "may" is permissive. Words not defined shall be given their common and ordinary meaning. (a) "Adjusted Gross Revenue" shall mean the sum of: (a) the total gross revenues identifiably generated by subscribers residing within the City of Omaha, and(b)the product of all other gross revenues not included in part(a), above, and not including total gross revenues identifiably generated by subscribers residing outside the City of Omaha,multiplied by the ratio of Omaha subscribers to total subscribers residing in Douglas and Sarpy counties. (b) "Application" shall mean any Application for Providing Cable Communication Services file by USWC with the Omaha City Clerk prior to the effective date of this Agreement and any amendments thereto. (c) "Basic Service" shall mean any service tier provided by USWC which includes the retransmission of local television broadcast signals. (d) "Cable Act" shall mean the Communications Act of 1934 as amended from time to time. (e) "Cable System" or"CATV System",or"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 the City. Such term does not include(a)a facility that serves only to retransmit the television signals of one or more television broadcast stations; (b) a facility that serves subscribers without using any public right-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, as amende,47 U.S.C. Section 201 et seq., 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 interactive on-demand services; (d)an open video system that complies with Section 653 of the Communications Act of 1934, as amended, 47 U.W.C. Section 573; or (e) any facilities of any electric utility used solely for operating its electric utility system. (f) "City" is the City of Omaha, a municipal corporation, in the state of Nebraska. (g) "Company" or "Grantee" is the grantee of rights under any ordinance awarding a franchise, its successors,transfers or assigns. (h) "Converter" means an electronic device which converts signals from one form to another for input to a television receiver. (i) "Council" shall mean the governing body of the City of Omaha. (j) "Dedication" shall be limited to those rights of way for the benefit of the public and controlled by the City, the terms, conditions or limitations upon which are not USWC Agreement. Page 2 inconsistent with the erection, construction or maintenance of a Cable System, its structures or equipment. (k) "Easement", unless the context otherwise indicates, shall mean those rights of way owned by the City, the terms, conditions or limitations upon which are not inconsistent with the erection, construction or maintenance of a Cable System, its structures or equipment. (1) "FCC" shall mean the Federal Communications Commission and any legally appointed, designated or elected agent or successor. (m) "Franchise Area" shall have the meaning set forth in Article II, Section 3. (n) "Gross Revenues" shall mean all revenue derived directly or indirectly by USWC, its affiliates, subsidiaries, or parent from or in connection with the operation of a Cable System to provide cable service in the City of Omaha pursuant to this Agreement. For purposes of this paragraph,the term "cable service" shall have that meaning set forth in Section 602(6)of the Communications Act of 1934,as amended, 47 U.S.C. Section 522(6); and the term "affiliate" shall include: (1) any subsidiary or parent of the parent of USWC, and (2) any entity in which USWC, the parent, or any subsidiary of USWC holds an equity interest of greater than nineteen percent (19%). "Gross revenues" shall include but not be limited to basic subscriber services monthly fees, pay cable, installation and reconnection fees, leased channel fees, converter rental, studio rental,production equipment, and personnel fees, advertising revenue and all revenues derived from any services ancillary to providing cable services on the System. For purposes of ascertaining "gross revenues",USWC shall be permitted to deduct from "accrued gross revenues" actual bad debt loss taken during the applicable franchise period;provided that this deduction and USWC's debt collection practice shall remain subject to the review of the City's Finance Director for determining acceptable industry practice. "Gross Revenues" shall not include: (i) Any taxes on services furnished by USWC and imposed directly upon any subscriber or user by the State, City or other governmental unit and collected by USWC on behalf of said governmental unit. USWC Agreement. Page 30 , , , . i 1 (ii) Any revenues derived from the provision of any telecommunications service over the System. (iii) Any revenue paid by USWC to any other person as compensation for programming delivered to USWC or its subscribers, or for operating expenses of USWC, to the extent such payments are made from revenues already included in USWC's own gross revenues subject to the franchise fee. (iv) Promotion monies paid to USWC by programming services to the extent such monies represent reimbursement to USWC for promotion expenditures paid by USWC to non-Company affiliated resources. (v) The revenues of any affiliate, subsidiary, or parent when such revenue is paid by subscribers for the wholesale or retail sale or lease of goods or services of any description that are generally available from sources whose primary business is not the operation of a cable television system. Gross revenue shall include revenue received by USWC, its affiliates, subsidiaries, or parent as a compensation for carrying programming for such sales. (o) "Highway" is a way or place of whatever nature,publicly maintained and open to the use of the public for purposes of vehicular travel. Highway shall include street or alley. (p) "Public Property" is any real property owned by the City other than a highway, sidewalk, easement or dedication. (q) "Sidewalk" is that portion of a highway, other than the roadway, set apart by curbs, barriers,markings or other delineation for pedestrian travel, including parkways, not on private lands. (r) "Service Tier" shall mean a category of cable service or other services provided by a cable operator and for which a separate rate is charged. 0 USWC Agreement. Page 4 s s ARTICLE II GENERAL TERMS AND CONDITIONS Section 1. GRANT OF FRANCHISE. (a) The City hereby grants USWC the non-exclusive right and privilege to erect, construct, operate and maintain in, upon, along, across, above, over and under the highways, sidewalks, easements, dedications and other public property now in existence and as may be created or established during its term, any poles, wires, cable, underground conduits, manholes and other television conductors and fixtures necessary for the maintenance and operation of a Cable System within the franchise area as described herein; SUBJECT, however, to the terms and conditions of this Agreement and as otherwise provided by law. PROVIDED that it is agreed and understood that USWC's right and privilege to operate a Cable System in the franchise area is dependent upon this franchise agreement with the City of Omaha,notwithstanding the grant of any authority previously or hereafter granted by the FCC. (b) If, during the term of this Agreement,USWC offers video programming in the franchise area as the operator of an open video system that complies with Section 653 of the Cable Act, USWC agrees to enter into any additional agreements with the City as may be necessary or permitted to carry out all provisions of this Agreement not prohibited or superseded by federal law or FCC regulations, including but not limited to provisions regarding interconnection of systems and public, community, educational, or governmental programming. Section 2. OBLIGATION OF FRANCHISE. USWC shall, in compliance with all applicable provisions of law and this Agreement, provide to the City cable service as described in the Application. USWC shall be free to change or modify such services only in accordance with the Cable Act and this Agreement. The Application, including all representations made therein, is hereby incorporated into this Agreement and made a part hereof Section 3. FRANCHISE AREA TO BE SERVED. USWC shall provide all services required by this Agreement to every area of the City described in the Application (hereafter the "Franchise Area"). Section 4. TERM OF THE FRANCHISE. (a) The franchise granted pursuant to this Agreement shall commence immediately upon termination of the video dialtone trial, which date shall be certified to the City in writing. The USWC Agreement. Page 5 • • • • franchise shall terminate on September 3, 2010, unless terminated or forfeited prior to that date in accordance with this Agreement or applicable law. Renewal of the franchise shall be in accordance with applicable law. Section 5. POLICE POWER. USWC acknowledges that any right or privilege hereunder is subject to the power of the City to adopt or enforce general ordinances necessary to the safety and welfare of the public. It therefore specifically agrees and covenants to comply with all applicable existing general laws or any pertinent ordinance enacted in the future. Any conflict between the provisions of this Agreement and present laws or future lawful exercise of the City's police powers, shall be resolved in favor of the latter. In the event such exercise is not of general application in the City,or applies exclusively to USWC or Cable System,or contains provisions which are inconsistent with this Agreement, such law shall prevail only if, upon exercise, the City finds an emergency exists which constitutes a danger to health, safety, property or general welfare, or if such exercise is mandated by law. Section 6. COMPLIANCE WITH STATE AND FEDERAL LAWS. (a) Notwithstanding any other provisions of this Agreement to the contrary,USWC shall at all times comply with all laws and regulations of the state and federal government or any administrative agencies thereof If any such state or federal law or regulation shall require USWC to perform any service, or shall permit USWC to perform any service, or shall prohibit USWC from performing any services in conflict with the terms of this Agreement or of any law or regulation of the City,then as soon as possible following knowledge thereof, USWC shall notify the City of the point of conflict believed to exist between such regulation or law and the laws or regulations of the City or this Agreement. (b) Should either party determine that a material provision of this Agreement is affected by any subsequent action of the state or federal government,the parties shall negotiate in good faith any of the provisions herein to such reasonable extent as may be necessary to carry out the full intent and purpose of this Agreement. Section 7. PAYMENT OF FRANCHISE FEE. (a) USWC agrees to pay to the City a franchise fee equal to five percent(5%)of adjusted gross revenues, as defined in this Agreement. The franchise fee shall be paid quarterly to the Finance Department of the City by corporate check no later than thirty (30) days following the USWC Agreement. Page 6 L • • • expiration of each quarter year ending on March 31st, June 30th, September 30th, and December 31st. Each payment shall be accompanied by a detailed,complete and accurate statement of all gross revenues and adjusted gross revenues derived or received during the period for which payment is made. Each statement shall be verified as accurate by the proper financial representative of USWC. (b) Within one hundred twenty (120) days following the conclusion of each fiscal year of USWC, it shall file an annual report prepared by USWC and verified as accurate by a proper financial officer of USWC. The report shall reflect the yearly total gross revenues, adjusted gross revenues, payments to the City, and all relevant financial information. (c) In the event the franchise of USWC should be terminated or forfeited prior to the expiration of its term, USWC shall immediately submit to the City a financial statement prepared as would otherwise be required, showing the required information for the time which has elapsed since the last period. The statement shall be due to the City within thirty (30) days following the termination. (d) No acceptance by the City of any payment shall be construed as a release or an accord or satisfaction of any claim the City may have for further or additional sums payable hereunder or for any performance or obligation of USWC. The City shall have a right to inspect or audit any records of USWC, and any such audit shall commence within twenty-four (24) months following the close of the applicable fiscal year of USWC. In the event the City determines that additional amounts are due, USWC shall pay said amount within thirty (30) days following written notice, provided however that USWC may pay said amount under protest with the right to recompute the same. (e) Interest shall be charged daily from the date due for any payment or recomputed amount,cost or penalty not made on or before the applicable date at the annual rate of twelve percent (12%). (f) All financial reports prepared by USWC required by this Agreement or by law shall conform to generally accepted accounting principles applied on a consistent and fair basis; (g) The franchisee fee shall not be construed to be in lieu of or to otherwise preclude the City from levying any lawful municipal tax of general application, nor shall it be off-set by any tax or fee imposed by any other taxing agency. USWC Agreement. Page 7 • Section 8. SERVICE AND RATES. USWC agrees to provide all services required by this. Agreement under the following terms: (a) It is agreed and accepted by USWC that, to the extent permitted by applicable law or regulation,now or hereafter, if any, all rates for any service which the City may by law regulate shall be fixed and regulated by the City in the manner established by ordinance consistent with federal law. (b) For any service programming provided by USWC pursuant to this franchise for which the City has no authority to regulate rates, USWC further agrees that the rate for such service will not be increased until prior written notice, consistent with the requirements of the Cable Act, has been provided to subscribers and the City stating the amount of, and the reason for, the proposed increase. At least thirty (30) days notice shall be provided. (c) In the event rates for services are regulated by the City,upon request by the City in connection with an audit pursuant to Section 7(d), the following accounting transactions between USWC, its parent corporation, if any, and affiliated or subsidiary companies of the system shall be fully disclosed to the City: all accounting assumptions and treatment, including but not limited to, rates of depreciation, capitalization and exposing of costs, determination of capital structure and amortization of indebtedness. Section 9. INTERCONNECT. (a) USWC agrees that,within 30 days after agreement is reached with Cox Cable Omaha, Inc., (hereinafter referred to as "Cox") it will physically interconnect its system with the cable television system operated by Cox within the City. Upon completion of the interconnection,USWC shall receive via the interconnection and offer to its subscribers residing within the city limits, on at least six (6) channels, the following community access or governmental access programming offered by Cox: 1. Ecumenical consortium; 2. Information and Service Network; 3. Educational consortium; 4. Educational consortium; 5. Educational consortium; 6. Health& Wellness consortium and Governmental access programming. USWC Agreement. Page 8 • Should any of the above-noted programming become unavailable via the interconnection,the City shall retain the right to substitute reasonable alternative community or governmental access sources of programming to be received by USWC via the interconnection and offered to its subscribers pursuant to this section. When 51% or more of USWC subscribers reside within the Omaha city limits, USWC shall, via the interconnection, offer to its subscribers one (1) additional channel carrying public access programming to the same extent as such programming is carried to subscribers of Cox. (b) Public, community, and governmental access programming received via the interconnection shall, to the extent reasonably possible, be shown at the same times as the programming is shown to Cox subscribers. When this requirement cannot be met because of conflicts between the programming received via the interconnection, USWC may reschedule the conflicting programming and show the programming as near to the time it is shown by Cox as is reasonably possible. To the extent required of other franchisees offering programming via the interconnection, the channel designation for programming received via the interconnection shall, except as reasonably determined by USWC, be the same as offered to Cox subscribers. All programming received via the interconnection shall be offered on the lowest service tier. USWC agrees to cooperate with the City and access channel users in developing, implementing, and enforcing procedural rules for scheduling public, community, and governmental access programming. (c) The interconnection shall utilize a method, a route,and cost allocations agreed upon by both Cox and USWC. Cox and USWC shall be responsible for the costs of constructing and maintaining the portions of the interconnect which are part of their respective systems. USWC shall be responsible for maintaining any portion of the interconnect not identifiably part of either system, but the costs of such maintenance shall be equally shared. USWC will construct and manage the interconnection consistent with the terms of this Agreement. Each company will provide and pay head-end for the system to transmit the programming available for all equipment necessary at its h y p g g through the interconnection. (d) During the time when programming received through the interconnection is not required to be shown, USWC may use the allocated channels for other programming to the extent USWC Agreement. Page 9 l , . • such use does not interfere with, degrade, or adversely affect the signal quality or programming schedule of programming received through the interconnection. (e) Costs of the interconnection and the programming provided via the interconnection, including any interconnection subscriber fee, shall not be credited against or in any manner used to offset any franchise fee or other financial obligation owed to the City by USWC. In the event any court of competent jurisdiction or regulation by any federal or state agency or department modifies or invalidates the terms of this paragraph so as to materially diminish or reduce the revenues of the City,the parties shall negotiate modifications to the interconnection requirement so as to avoid any reduction in revenue of the City. Notwithstanding such negotiations, the City retains the right to terminate all or any of the interconnection obligations of this Agreement if the City concludes such termination is necessary to avoid loss of revenue otherwise required by the franchise agreement to be paid by USWC to the City. USWC waives all claims for any amounts previously paid which may 1 in any manner arise from modification or invalidation of this paragraph. (f) USWC may place its logo or other identification on any programming received via the interconnection in addition to or in place of any logo or identification of Cox. The USWC logo or identification shall be equal in size to that of Cox and shall be shown only when the logo or identification of Cox appears in the programming. This subparagraph shall not apply to logos or identification used for on-screen credit for sponsorship of programming. (g) The City agrees to assist USWC in any application to the Douglas County Board,the Sarpy County Board, or any other governmental entity to receive approval for USWC to offer the access programming provided for in this Section to its subscribers who live outside the city limits of Omaha. USWC shall notify the City if subscribers living outside the city limits are offered the access programming. If access programming is offered to these subscribers, USWC shall provide the City with at least 30 days written notice that such programming will be discontinued for any reason other than a temporary interruption or at the request of a subscriber. (h) For the purposes of this Section,the following definitions shall apply: (i) "Public Access" shall mean that portion of the channel capacity designated for use by, or used by, the public; provided, however, that the channel capacity designated for use by,or used by,a community access organization recognized under USWC Agreement. Page 10 CI the Cox Cable, Omaha, community access policies shall not be included within the term. (ii) "Community Access" shall mean that portion of the channel capacity designated for use by, or used by, community access organizations recognized under the Cox Cable, Omaha, community access policies. (iii) "Governmental Access" shall mean that portion of the channel capacity designated for use by, or used by, any local governmental entity or its agencies. (iv) "Cox Cable, Omaha," or"Cox Cable, Omaha,Inc.," shall mean the company by that name holding a cable television franchise with the City of Omaha on the effective date of this Agreement or any successor of that company. Section 10. INTERCONNECT FEE. (a) USWC shall pay to the City a monthly interconnection fee determined by multiplying the number of subscribers offered the programming received via the interconnection by the proportional production cost. The fee shall be based upon all subscribers offered programming via the interconnection who do not subscribe to Cox,without regard to the franchised cable operator to which they subscribe. (b) For purposes of this section,the following definitions shall apply: (i) "Combined production cost" shall be Cox's average monthly community and governmental(and public once it is carried by USWC via the interconnection)access programming production cost divided by the total of the number of Cox subscribers (residing inside or outside the City)plus the number of non-Cox subscribers offered the programming received via the interconnection. (ii) "Proportional production cost" shall be the combined production cost multiplied by the ratio the number of access channels offered to non-Cox subscribers via the interconnection bears to the number of public, community, and governmental channels used in determining combined production cost, but until the public access channel is shown by USWC via the interconnection, it shall not be counted in the ratio. USWC Agreement. Page 11 0 • (c) The amount of the interconnection fee shall be agreed upon by Cox,USWC, and the City. If agreement cannot be reached after reasonable efforts, the fee shall be determined by the City. This Agreement shall not be construed to grant USWC any right to examine records or information provided to the City by Cox for the purpose of calculating the interconnect fee except to the extent the City, within its discretion, provides such records or information to USWC. It is agreed that the initial amount of the interconnection fee shall be 12.10 per subscriber per month if only USWC's City of Omaha subscribers are offered the community and governmental access channels or 10.70 per subscriber per month if all of USWC's subscribers are offered such access channels. Such fee shall be recalculated upon a written request to the City by Cox, USWC, or any other cable television franchisee subject to making payment of an interconnect fee to the City or upon the written demand of the City;provided,however,that such a request may be made no more frequently than once every six calendar months. (d) This fee will be calculated on a monthly basis but may be paid to the City of Omaha quarterly. The initial fee payment shall be made at the same time as the first franchise fee payment after the fee is collected from any subscriber. To the extent permitted by law, the fee may be separately stated on bills to subscribers. The fee payments shall be placed in a grant fund and, to the extent permitted by federal or state law, used only to promote and assist public, governmental, or community access programming, but no portion will be paid to or for the benefit of Cox. The distribution of any moneys in this fund shall be within the discretion of the Omaha City Council and be subject to the approval of the Omaha City Council. Upon reasonable request to the City, USWC shall be entitled to receive an accounting of all expenditures of money from this fund. Section 11. PUBLIC SAFETY PROGRAMMING. (a) Upon completion of the interconnection required by the franchise agreement, as amended, and upon request of the Chief of the Omaha Police Department or Fire Department, USWC will provide cable service, including the programming received via the interconnection,to all Police Department and Fire Department stations that are within the Omaha city limits and the area served by USWC and which are not at that time served by Cox Cable Omaha,Inc., or another cable television provider offering the services required by this section. Service will include providing a secure channel or a comparable method of cablecasting that prevents video programming from being received by unauthorized persons and, after the end of 1997, any portion of the programming from USWC Agreement. Page 12 being received by unauthorized persons. Charges for service may be made in accordance with USWC's rate schedule,except that no charge may be made for any extension of cable or provision of converters or other equipment necessary to receive the secured channel programming. The Police or Fire Department connections to USWC's system, including the use of the secure channel, shall not be used to resell services in or throughout the Departments' stations, nor shall the outlets be located in areas where public viewing of the services is permitted. The City shall take reasonable precautions to prevent use of the cable services required by this paragraph in any manner contrary to law or governmental regulations. (b) Upon completion of the interconnection required by this Agreement and at such time as the Omaha Fire Department or Police Department has the capability to transmit live programming . over the cable television system of Cox Cable Omaha USWC will,through the interconnection,offer this live programming to all Omaha fire or police stations within the city limits and within USWC's area of service which are not at that time served by Cox Cable Omaha, Inc., or another cable television provider offering the services required by this subsection. (c) This section shall not be interpreted to require USWC to provide facilities or equipment for producing or transmitting the live programming other than cable extensions and associated equipment necessary for the stations to receive the live programming. Section 12. EDUCATIONAL SERVICE. Upon completion of the interconnection required by the franchise agreement, as amended,USWC will provide to all public,parochial, and accredited 1 private schools within the city limits which are, (i) within the USWC service area, and are, (ii)not served by another cable television provider offering the public,community and governmental access programming available through the interconnection, sufficient cable service to permit the school to receive such public, community, or governmental programming. Such service shall be provided at no installation or monthly charge to the schools. The school's connections to USWC's system shall not be used to resell services nor shall the outlets be located in areas where public viewing of the services is permitted. Section 13. LETTER OF CREDIT. (a) Within ten(10)days after the execution of this Agreement,USWC shall deposit with the City a letter of credit from a financial institution in the amount of$2,500.00. The form and content of such letter of credit shall be approved by the City Attorney. The letter of credit shall be USWC Agreement. Page 13 /011 . used to insure the faithful performance by USWC of all provisions of this Agreement,the provisions of applicable law,and compliance with all orders,permits and directions of any agency,commission, board, department, division or office of the City having jurisdiction over its acts or defaults herein, and the payment by USWC of any claims, liens and taxes due the City which arise by reason of the construction, operation or maintenance of the system. (b) The letter of credit shall be maintained at$2,500.00 less any amounts withdrawn in accordance with this Agreement and shall remain in effect for sixty (60) days after the conclusion or termination of this Agreement. (c) If USWC fails after thirty (30) days written notice to pay to the City any compensation within the time prescribed herein,or fails to pay to the City any taxes due and unpaid, or fails to repay the City any damages, costs or expenses which the City is compelled to pay by reason of any act or default of USWC in connection with this Agreement or law, or fails to comply with any material provision of this Agreement or law which the City reasonably determines can be remedied by demand on the letter of credit, the City may immediately request payment from the letter of credit of the amount thereof,together with interest,if applicable. Upon request for payment, the City shall notify USWC of the amount and date hereof (d) Any right hereunder shall not be deemed exclusive but in addition to all other rights of the City,whether reserved by this Agreement or authorized by law, and no action,proceeding or exercise of a right with respect to such letter of credit shall adversely affect any other right the City may have. (e) The letter of credit shall contain the standard endorsement that it may not be cancelled by the surety nor the intention not to renew be stated by the surety until sixty (60) days after receipt by the City of a written notice of such cancellation or non-renewal. Section 14. INSURANCE. (a) USWC agrees that it will procure and maintain throughout the term of the franchise insurance as specified hereunder. USWC shall be allowed to self-insure the types and amounts of insurance so long as it is a wholly owned subsidiary of U S WEST, Inc. and has the necessary financial resources. The City shall not unreasonably withhold approval to self-insure. (i) Commercial General Liability Insurance covering claims for bodily injury, death, personal injury or property damage occurring or arising out of the operations of the franchise. USWC Agreement. Page 14 r , • Such insurance shall include coverage for independent contractor's protection, premises- operations, products/completed operations and contractual liability with respect to the liability assumed by Company hereunder. The limits of insurance shall not be less than: Each Occurrence $2,000,000 Products-Completed Operations Limit $2,000,000 Personal and Advertising Injury Limit $2,000,000 (ii) Workers' Compensation Insurance with statutory limits as required in the state(s) of operation and Employers' Liability insurance with limits of not less than $100,000 each accident. (iii) Comprehensive Automobile Liability Insurance covering the ownership, operation and maintenance of all owned,non-owned and hired motor vehicles with limitsnot of less than $1,000,000 per occurrence for bodily injury and property damage. (b) USWC shall forward to the City certificates of such insurance upon execution of this Agreement and upon any renewal of such insurance during the term of the franchise. The certificate(s)shall provide that(1)the City be named as an additional insured(s)as their interest may appear as respects the franchise; and (2) sixty (60) days prior written notice of cancellation of, material change or exclusions in the policy to which certificate(s) relate shall be given to the City. Section 15. INDEMNIFICATION. Company shall, at its sole cost and expense, fully indemnify, defend and hold harmless the City, its officers, boards, commissions and employees against any and all claims, suits, actions, liability and judgments for damage (including, but not limited to, expenses for reasonable legal fees and disbursements and liabilities assumed by the City in connection therewith) as follows: (a) To persons or property, in any way arising out of or through any act or omission of USWC, its servants, agents or employees; (b) Arising out of any claim for invasion of the right of privacy, for defamation of any person,firm or corporation,or the violation or infringement of any copyright,trademark,trade name, service mark or patent, or of any other right of any person, firm or corporation, except that USWC shall have no liability for claims arising out of or relating to channels required under Sections 9(a) and 11(a)hereof, or public access or leased access channels, as provided in Section 638 of the Cable Act; USWC Agreement. Page 15 0 1 f (c) Arising out of USWC's failure to comply with the provisions of any federal, state or local statute, ordinance or regulation applicable to USWC in its business hereunder; (d) The foregoing indemnity is conditioned upon the following: The City shall give Company prompt notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this section. In the event that suit is brought against the City either independently or jointly with USWC, on account thereof,USWC,upon notice by the City, shall defend the City in any such suit at the cost of USWC. In the event final judgment is obtained against the City,USWC shall indemnify the City to the extent required by this section and pay such judgment with all costs and hold the City harmless therefrom. Nothing herein shall be, deemed to prevent the City from cooperating with Company and participating in the defense of any litigation by its own counsel at its sole cost and expense. In the event the City elects to participate in the defense of the claim, USWC shall retain the right to unilaterally settle the claim on its own terms and conditions unless the City accepts full responsibility for any and all damages and costs associated with the claim. No recovery by the City of any sum by reason of the Letter of Credit required in the Agreement shall be any limitation upon the liability of USWC to the City under the terms of this section, except that any sum so received by the City shall be deducted from any recovery which the City might have against USWC under the terms of this section. ARTICLE III CABLE SYSTEM CONSTRUCTION. Section 1. GENERAL CONSTRUCTION. USWC agrees to.construct, install, operate and maintain the system so as to be capable of providing each service required by this Agreement to persons within the,franchise area in a manner consistent with all laws, ordinances, construction standards, governmental requirements, and F.C.C. technical standards. USWC agrees that the system provided in the franchise area shall be at least equal to the analog system provided by USWC in the area during its video dialtone trial authorized by the FCC. Section 2. SERVICE RECORDS. (a) USWC shall maintain for inspection by the City or its agents a record for at least three (3) years containing any requests for cable television service received by it. All other records, or copies thereof, retained or prepared by USWC in the regular course of business shall be made USWC Agreement. Page 16 • available to the City or its agents upon request, provided, however, that all such information and records shall be treated confidentially by the City as provided in Article VI, Section 2(c). (b) Within sixty(60)days following the effective date of this Agreement,USWC shall provide the City with the following information: (i) The areas within the service areas in which the applicant will or is required to bury cable (excluding "drops"); and (ii) The areas within the service area for which the applicant will have to obtain easements from property owners in order to furnish service to the area. (c) USWC shall enter into contracts with any public utility companies or any other owner or lessee of any poles located within or without the service areas to whatever extent such contract or contracts are required by law,or are of advantage to USWC for use of poles and posts necessary for proper installation of the Cable System and unless prescribed by law,obtain right-of-way permits from appropriate state, county and federal officials necessary to cross highways or roads under their respective jurisdictions to supply main trunk lines from USWC's receiving antennas, obtain permission from the Federal Aviation Administration to erect and maintain antennas suitable to the needs of the Cable System and its subscribers and obtain whatever other permits a city, county, state or federal agency may require. Section 3. SUPERVISION BY THE CITY. The Director of Public Works, or a person appointed by the Council,may from time to time issue reasonable rules and regulations concerning the construction, operation and maintenance of the Cable System as are consistent with the law and the provisions of the Agreement, provided that such rules and regulations may not increase the service obligations of, or impair the right granted hereunder to, USWC. Section 4. MANDATORY CONTINUITY OF SERVICE. (a) It shall be the right of all subscribers to continue receiving service insofar as their financial and other obligations to USWC are honored. In the event that USWC elects to overbuild, rebuild, modify, or sell the Cable System, or the City gives notice of intent to terminate or fails to renew its franchise, USWC shall act so as to insure that all subscribers receive continuous, uninterrupted service regardless of the circumstances. (b) In the event of a transfer of the franchise, or in the event a new operator acquires the Cable System, USWC shall cooperate with the City, new franchisee or operator in maintaining USWC Agreement. Page 17 • continuity of service to all subscribers. During such period, USWC shall be entitled to the net revenues, if any, for any period during which it operates the Cable System. (c) In the event USWC fails to operate the Cable System for seven(7) consecutive days without prior approval of the City or without just cause,the City may,at its option,operate the Cable System or designate an operator until such time as USWC restores service under conditions acceptable to the City or a permanent operator is selected. If the City is required to fulfill this obligation for USWC,USWC shall reimburse the City for all reasonable costs or damages in excess of revenues from the Cable System received by the City that are the result of USWC's failure to perform. The City shall also be entitled to payment of the franchise fee during that period. Section 5. MAINTENANCE OF CABLE SYSTEM. (a) USWC shall erect and maintain all parts of the Cable System in good condition throughout the entire franchise term in accordance with this Agreement and as provided by law. (b) USWC shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum system use. Complaint procedures shall be established in the manner provided by municipal ordinance. (c) USWC shall annually furnish the City and the Cable Television Advisory Committee with an operations report generally showing the type (basic versus premium service tier, etc.) and number of subscribers of each type, subscribers gained or lost by category, and a summary of all complaints, and their resolution, received from subscribers or customers residing with the Franchise Area concerning the operation of the system. Section 6. SYSTEM OPERATION. In addition to all other provisions of law and this Agreement, it is agreed this system shall be installed and maintained in accordance with the highest acceptable standards of the industry as measured by systems installed in comparably sized cities, to the end that the subscriber may receive a high quality, desirable form of service. (a) In determining satisfactory compliance with the provisions of this section, the following, among other things, may be considered: USWC Agreement. Page 18 . 1 • i . 1 • t (i) That the Cable System as installed is capable of transmitting and passing the standard color television signals without the introduction of material degradation of color fidelity and intelligence. (ii) That the Cable System is designed and rated for 24-hour-a-day continuous operation. (iii) That the Cable System is capable of and will produce a picture upon any subscriber's television screen in black and white or color(provided the subscriber's television set is capable of producing a colored picture)that is undistorted and free from ghost images and accompanied by proper sound, assuming typical standard production television sets in good repair, and that the television transmission is satisfactory; in any event,the picture produced shall be of a quality not less than that provided to subscribers during the video dialtone trial authorized by the FCC. (iv) That the Cable System transmits or distributes signals of adequate strength to produce good pictures with good sound at all television receivers of all subscribers without causing cross-modulation in the cables or interfering with other electrical or electronic systems or the reception of other television or radio receivers in the area not connected to the Cable System. (b) In the event the FCC requires that USWC carry the signal of any local, full-power television broadcast station, USWC shall furnish to its subscribers such signals at the time of broadcast by said station. No part of said local stations' signals may be altered, deleted or modified in any respect by USWC except as allowed by law. (c) USWC shall make available at cost to all subscribers requesting them such switching devices as are necessary to permit a subscriber to use his own antenna. Such devices shall provide the best available signal quality consistent with the reasonable technical state of the art, and such devices shall not result in unreasonable interference to signals received using a subscriber-owned antenna. USWC shall inform each new subscriber prio r to the time a cable connection is made that (i) such a device is available,and(ii)the cost to the subscriber of installing it. No subscriber-owned antennas shall be removed by USWC, except upon the written request of the owner. USWC Agreement. Page 19 CO • • ARTICLE IV ADMINISTRATION AND REGULATION. Section 1. RULES AND REGULATIONS. (a) In addition to the inherent powers of the City to regulate and control a franchise, and those powers expressly reserved by the City or agreed to and provided for herein,the right and power is hereby reserved by the City to promulgate such additional regulations as it shall find necessary in the exercise of its lawful police powers and in furtherance of the terms and conditions of this Agreement, and in accordance with Article II, Section 5. (b) The City may also adopt such regulations at the request of USWC upon application. Section 2. APPLICATION PROCEDURE. Except as otherwise specifically provided for herein, and subject to the provisions of federal law, all applications by USWC for changes in services (regulation of which is permitted by applicable law),transfer of ownership, and proposed changes in regulations, ordinances, and this Agreement, shall be made and processed according to the following procedure: (a) Applications shall be in a form containing sufficient facts and information acceptable to the City. (b) An application may be rejected for inadequacy by the City if it contains an inadequate description of what is being applied for, is not in an acceptable form, or contains insufficient facts and information for adequate consideration. Any determination by the city or its staff as to insufficiency must be reasonable. (c) A rejection of an application for inadequacy shall be in writing by notice which shall state the deficiencies. The notice shall not be construed to limit further and different deficiencies on subsequent applications. (d) Upon acceptance, the City shall review the application regarding the necessity of further staff study and reporting. The staff may submit the application to the Council if it deems it adequate and complete and in need of no further staff study or report. The City shall give notice to Company within thirty (30) days of acceptance if it will study the application prior to submission to the Council. The study shall be completed within forty-five (45) days unless such period is extended by agreement of the parties. USWC Agreement. Page 20 (e) At the conclusion of the study, the City may submit the application study and other information, documents and exhibits to the Council for consideration. (f) At the expiration of the study period, if the matter has not been placed upon the Council agenda,USWC may request the City Clerk to place the application upon the Council agenda for the next regular meeting. (g) During the study period, USWC shall fully cooperate with the City in providing information and documents which are related to and reasonably necessary in the proper evaluation of the application. Failure of USWC to so cooperate or USWC's unreasonable delay in providing information and documents shall be grounds for a reasonable extension by the Council of the study period or, if either the lack of cooperation or the delay substantially impairs the study,the Council may summarily deny the application. (h) Upon submission to the Council, it shall review the application and any studies, information and documents which accompany it. Except for an application for which a public hearing is otherwise required, the Council shall approve or deny the application based upon the record within thirty (30) days. Public notice of hearing shall be given. (i) At a public hearing pursuant to this application process,the Council shall hear reports from staff, consultants, and the public. The Council shall provide a reasonable but not unlimited opportunity for rebuttal. The Council may impose reasonable time limitations upon verbal presentations,which may be selectively waived to facilitate adequate evaluation of the application. (j) If, at the hearing,the Council determines that additional information or documents are necessary to adequately evaluate the application, it may continue the hearing from time to time pending augmentation of the record. A continuance shall not exceed fifteen (15) days at a time. (k) At the close of the hearing, the Council shall within thirty(30) days approve, deny or modify the application. Such action shall be final. Notice of denial and the grounds therefor may be in writing if requested. Reasonable conditions in furtherance of the purpose and intent of the franchise may be attached by the Council to an approval or modification and may be acted upon by USWC upon acceptance in writing by USWC. (1) Any time limit may be waived by consent of both the Council and USWC. USWC Agreement. Page 21 f r • Section 3. PERFORMANCE EVALUATION SESSIONS. (a) The City and USWC shall hold scheduled performance evaluation sessions commensurate with those required of any other cable television franchise holder operating within the City and as may be required by federal and state law. All such evaluation sessions shall be open to the public. (b) Special evaluation sessions may be held at any time during the term of the franchise at the request of the City or USWC,provided that both the City and USWC shall mutually agree on the time, the place and the topics to be evaluated. (c) All evaluation sessions shall be open to the public and announced in a newspaper of general circulation in accordance with legal notice. USWC shall notify its subscribers of all evaluation sessions by announcement on at least one (1) channel of its Cable System between the hours of 7:00 p.m. and 9:00 p.m. for five (5) consecutive days preceding each session. (d) Topics which may be discussed at any scheduled or special evaluation session may include but not be limited to service rate structures, franchise fee, penalties, free or discounted services, application of new technologies, system performance, services provided, programming offered, customer complaints, privacy, amendments to this Agreement or municipal ordinance, judicial and F.C.C. rulings, line extension policies, and Company or City rules. (e) Subscribers of the Franchise Area may add topics or request such a session either by working through the negotiating parties or by presenting a petition. If such a petition bears the valid signatures of fifty(50) subscribers of the Franchise Area,the proposed topic or topics shall be added to the list of topics to be discussed at the evaluation session. (f) During a review and evaluation by the City, USWC shall fully cooperate with the City and shall provide such information and documents as the City may need to reasonably perform the review. (g) If at any time in its review, the City determines that reasonable evidence exists of inadequate Cable system performance, it may require USWC to perform tests and analyses directed toward such testing and to prepare results and a report, if requested, within thirty (30) days after notice. Such report shall include the following information: (i) The nature of the complaint or problem which precipitated the special tests; (ii) What system component was tested; USWC Agreement. Page 22 L (iii) The equipment used and procedures employed in testing; (iv) The method, if any, by which such complaint or problem was resolved; (v) Any other information pertinent to said tests and analyses which may be required. (h) The City may require that tests be supervised at Company's expense by a professional engineer not on the permanent staff of USWC and approved by the City. The engineer should sign all records of special tests and forward to the City such records with a report interpreting the results of the tests and recommending actions to be taken. If the engineer certifies that USWC's system in all pertinent respects is operating within FCC performance specifications or that any inadequate performance is due to causes beyond the control of USWC,the City shall reimburse USWC for the reasonable fee and expenses of the architect. (i) The City's right under Article IV, Section 3, shall be limited to requiring tests, analysis, and reports covering specific subjects and characteristics based upon said complaints or other evidence when and under such circumstances as the City has reasonable grounds to believe that the complaints or other evidence require that tests be performed to protect the public against substandard cable service or services not in compliance with this Agreement or law. Section 4. SUPERVISION OF THE FRANCHISE. The Council may appoint a staff person who shall be responsible for the continued administration of USWC's franchise. Notice of such appointment shall be conveyed to USWC. Section 5. LIQUIDATED DAMAGES. (a) For the violation of any of the following provisions of this franchise, liquidated damages shall be chargeable to the letter of credit, provided, however, that before any liquidated damages are assessed, the City must provide written notice, by certified mail, of the violation to USWC and provide USWC with a period of not less than thirty (30) days to cure the violation, as follows: (i) For failure to provide data and reports as requested by the City and as required herein or by ordinance - $25.00 per day. (ii) Forty-five (45) days following adoption of a resolution of the Council determining a failure of Company to comply with an identified material construction, operational, or maintenance standard, USWC shall pay to the City Fifty Dollars ($50.00)per day for each CIUSWC Agreement. Page 23 . day, or part thereof, that such noncompliance continues. Provided, however, if such compliance cannot be effected in forty-five (45) days for reasons beyond the control of USWC,which shall be evidenced to the satisfaction of the City,the City agrees to reasonably extend the time permitted for such compliance before assessing liquidated damages. (b) The letter of credit deposited shall become the property of the City in the event that its franchise is cancelled by reason of the default of USWC. USWC shall be entitled to the return of the letter of credit, or portion thereof as remains on deposit with the Director of Finance at the expiration of the term of this Agreement,provided that there is then no outstanding default on the part of USWC. (c) Damages and costs shall be paid in the manner provided in Article II, Section 9. Section 6. FORFEITURE AND TERMINATION. (a) In addition to all other rights and powers retained by the City under this Agreement or authorized by law,the City reserves the right to forfeit and terminate the franchise and all rights and privileges of USWC hereunder in the event of a substantial breach of its material terms and conditions. A substantial breach by USWC shall include,but shall not be limited to,the following: (i) Violation of any material provision of the franchise or any material rule, order, regulation or determination of the City made pursuant to the franchise; (ii) Attempt to evade any material provision of the franchise or practice any fraud or deceit upon the City or its subscribers or customers. (iii) After receiving any opportunity to cure required herein, intentional failure to provide any service USWC is obligated to provide pursuant to this Agreement; (iv) Failure to restore service after ninety-six (96) consecutive hours of interrupted service, except when approval of such interruption is obtained from the City or such interruption is beyond the reasonable control of USWC; or (v) Material misrepresentation of fact in the application for or negotiation of the franchise. (b) The foregoing shall not constitute a major breach if the violation occurs but it is without the fault of USWC or occurs as a result of circumstances beyond its control. USWC shall not be excused by mere economic hardship nor by misfeasance or malfeasance of its directors, officers or employees. USWC Agreement. Page 24 L • i • • (c) The City shall make a written demand that USWC comply with any such provision, rule, order or determination under or pursuant to this franchise. If the violation by USWC continues for a period of thirty (30) days following such written demand without written proof that the corrective action has been taken or is being actively and expeditiously pursued,the City may place the issue of termination of the franchise before the Council. The City shall cause to be served upon USWC, at least twenty(20)days prior to the date of such Council meeting, a written notice of intent to request such termination and the time and place of the meeting. Public notice shall be given of the meeting and issue which the Council is to consider. (d) The Council shall hear and consider the issue, and shall hear any person interested therein, including USWC, and shall determine in its discretion whether or not any violation by USWC has occurred. (e) If the Council shall determine the violation by USWC was the fault of USWC and within its control, the Council may, by resolution, declare that the franchise of USWC shall be forfeited and terminated,unless there is compliance within such period as the Council may fix, such period to be not less than ninety (90)days,provided no opportunity for compliance need be granted for fraud or misrepresentation. (f) The issue of forfeiture and termination shall automatically be placed upon the Council agenda at the expiration of the time set by it for compliance. The Council then may terminate the franchise forthwith upon finding that USWC has failed to achieve compliance or may further extend the period, in its discretion. Section 7. FORECLOSURE. Upon the foreclosure or other judicial sale of all or a substantial part of the Cable System,USWC shall notify the City of such fact,and such notification shall be treated as a notification that a change. in control of USWC has taken place, and the provisions of this Agreement governing the consent of the Council to such change in control of USWC shall apply. Section 8. RECEIVERSHIP. The Council shall have the right to cancel this Agreement one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of USWC, whether in receivership, reorganization, bankruptcy or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days, or unless: USWC Agreement. Page 25 L • (a) Within one hundred twenty (120) days after this election or appointment, such receiver or trustee shall have fully complied with all the provisions of this Agreement and remedied all defaults thereunder; and, (b) Such receiver or trustee, within said one hundred twenty (120) days, shall have executed an Agreement, duly approved by the court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this Agreement and all applicable provisions of law. ARTICLE V MISCELLANEOUS PROVISIONS. Section 1. NOTICE. (a) Any notice for which time is not otherwise provided, which is required by law or by this Agreement, shall be made by publication in a local newspaper of general circulation at least ten(10)days prior to the meeting and by posting similarly at City Hall. Additionally, all meetings shall be announced on at least one channel of the Cable System between the hours of 7:00 p.m. and 9:00 p.m. for five (5) consecutive days immediately preceding the meeting or hearing. (b) All notices from USWC to the City pursuant to this Agreement shall be to the City Clerk,unless otherwise provided. USWC shall maintain, throughout the term of this franchise, an address for service of notices by mail. USWC shall also maintain within the City an office and telephone number for the conduct of matters related to this franchise during normal business hours. All notices shall be sent by certified mail. (c) USWC shall pay the costs associated with the publication of any notice required herein or otherwise mandated by law. • Section 2. BOOKS AND RECORDS. (a) USWC agrees to keep on file with the City a current list of all stockholders holding more than 10% of the outstanding stock. The list shall show the amount of such ownership and identify the current officers. The list shall be updated within thirty (30)days to reflect any changes in ownership of more than 10%of the outstanding stock. USWC Agreement. Page 26 i • • 1 , (b) All financial reports required to be filed with any source or which are otherwise prepared by USWC, and which are otherwise publicly available, shall be supplied to the Finance Director of the City upon written request. (c) Whenever USWC shall make available for inspection by the City or submit to the City any information or reports containing information reasonably considered proprietary by USWC, the City shall keep such reports and information confidential, unless disclosure is required by court order or applicable law. At the time the information or reports are made available to, or submitted to,the City, USWC shall identify all information or reports it considers proprietary. Section 3. RELOCATION. Whenever the City, County, or State of Nebraska shall require the relocation or reinstallation of any property of USWC, it shall be the obligation of USWC,upon notice of at least thirty (30) days, to immediately remove and relocate or reinstall said property at the expense of USWC,as may be reasonably necessary to meet the requirements of the City,County, or State, subject to anyreimbursementprovided bylaw. Section 4. MUNICIPAL USE OF COMPANY FACILITIES. The City shall for any lawful purpose have the right,through the term of this franchise,to install and maintain free of charge upon the poles owned by USWC that were erected solely for its Cable System, any wire and pole fixtures that do not unreasonably interfere with the operations of USWC. The City agrees to indemnify, defend and hold harmless USWC from any claims resulting from its installation and use thereof. Section 5. ADVISORY COMMITTEE. USWC agrees to work reasonably with and support the activities of the Omaha CATV Advisory Committee. Section 6. REMOVAL OF FACILITIES. Upon termination of service to any subscriber, USWC shall at its own expense promptly remove all of its facilities and equipment from the premises of such subscriber upon his written request, including subscriber drops which are not buried. Section 7. OTHER PETITIONS AND APPLICATIONS. Upon written request from the City, USWC shall submit to the City copies of all otherwise publicly available pleadings, applications, notifications and documents of any kind relating to its cable television operations within the franchise area that are submitted by Company to any federal, state or local court,together with copies of all otherwise publicly available decisions, correspondence or documents evidencing actions by any such court. Upon request of the City, Company shall submit to the City any USWC Agreement. Page 27 otherwise publicly available applications, notifications or documents pertaining to any matter affecting cable television operations within the franchise area that are submitted by Company to any federal, state or local regulatory agency or governmental body. Section 8. COMPANY RULES AND REGULATIONS. USWC shall have the authority to promulgate such rules and regulations,terms and conditions governing the conduct of its business as shall be reasonably necessary to enable USWC to exercise its rights and perform its obligations, and to assure uninterrupted service to each and all of its subscribers. Such rules,regulations,terms and conditions shall not be in conflict with the provisions hereof or applicable local, state and federal laws, rules and regulations. Section 9. LOCKOUT DEVICE. USWC agrees to supply at cost a device sufficient to lock out any pay cable services to any subscriber requesting such device, provided USWC shall also inform all subscribers that such a device is available. Section 10. TRANSFER OF OWNERSHIP OR CONTROL. (a) USWC agrees that its franchise shall not be assigned or transferred, either in whole or in part, or leased, sublet, or mortgaged in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person without the prior written consent of the City, which consent will not be unreasonably withheld. USWC may, however,transfer or assign the franchise to a wholly-owned or majority-owned subsidiary of USWC or of US WC's parent company U S West, Inc., and such subsidiary may transfer or assign the franchise back to USWC without such consent. The proposed assignee must show financial responsibility as reasonably determined by the City and must agree to comply with all provisions of the franchise. (b) USWC shall promptly notify the City of any actual or proposed change in,or transfer of, or acquisition by any other party of, control of USWC. The word "control" as used herein is not limited to major stockholders but includes actual working control in whatever manner exercised. Every change, transfer or acquisition of control of USWC shall make the franchise subject to cancellation unless and until the City shall have consented thereto, which consent will not be unreasonably withheld. For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, the City may inquire into the qualification of the prospective USWC Agreement. Page 28 17 controlling party,and USWC shall assist the City in any such inquiry. Violation of this section shall be a substantial breach of a material term of this Agreement. (c) The City shall be deemed to have consented to a proposed transfer or assignment in the event its refusal to consent is not communicated in writing to USWC within sixty (60) days following receipt of written notice of the proposed transfer or assignment. (d) The consent or approval of the Council to any transfer of USWC shall not constitute a waiver or release of the rights of the City in and to the streets, and any transfer shall by its terms be expressly subordinate to the terms and conditions of this franchise. (e) In the absence of extraordinary circumstances,the City will not approve any transfer or assignment of the franchise prior to substantial completion of construction and activation of the Cable System. Section 11. REMOVAL OF CABLE SYSTEM. (a) At the expiration of the term for which this franchise is granted, or upon its termination as provided herein,or otherwise by law,USWC shall forthwith,upon notice by the City, remove at its own expense all aerial portions of the Cable System from all highways, sidewalks, easements, dedications and public property within the Franchise Area, and upon a determination in the reasonable discretion of the City that such removal is required in order to eliminate or prevent a hazardous condition, shall remove such underground portions of its Cable System. If USWC fails to do so, the City may perform the work at USWC's expense. USWC shall be entitled to receive notice in writing from the City setting forth one or more of the occurrences hereinafter provided, and that USWC shall have nine(9)calendar months from the date upon which said notice is received to remove said properties as hereinabove required. USWC shall cooperate with and shall not interfere with any other grantee of a cable franchise for the City. If USWC fails to do so, the City may perform the work at USWC's expense. A bond in the amount of$5,000.00 to cover this expense shall be forwarded within ten(10) days of execution of this Agreement by USWC. (b) The Director of Public Works of the City is herein and hereby authorized to enforce the provisions of this section of this Agreement as hereinafter provided: (i) Following the expiration, forfeiture, termination or revocation of this franchise in accordance with the procedures set forth herein,the Director shall notify USWC in writing that within nine (9) calendar months following receipt of said fN USWC Agreement. Page 29 notice, USWC shall remove from the streets of the City upon and over which its properties are located its properties in accordance with subsection (a), unless otherwise authorized and permitted by the Director of Public Works. (ii) The Director of Public Works may declare abandoned any property of USWC remaining in place nine (9) months after notification from the Director as hereinabove provided, and the same shall be considered permanently abandoned property, unless the Director of Public Works extends the time for removal of the property. (c) Any property abandoned by USWC as hereinabove or hereinafter provided shall become, at the option of the City,property of the City and USWC agrees to execute and deliver an instrument in writing,transferring its ownership interest in any such property to the City. Section 12. EMINENT DOMAIN. Nothing herein shall be deemed or construed to impair or affect, in any way or to any extent, the right of the City to acquire the property of the grantee through the exercise of eminent domain in accordance with applicable law. Section 13. COMPANY TO HAVE NO RECOURSE. Except as expressly provided in this Agreement,USWC herein shall have no recourse whatsoever against the City for any loss, cost or expense or damage arising out of any of the provisions or requirements of this Agreement or law or because of the lawful enforcement thereof by the City, nor for the failure of the City to have the authority to grant all or any part of any franchise. USWC expressly acknowledges that, in accepting its franchise by executing this Agreement, it did so relying upon its own investigation and understanding of the power and authority of the City to grant a franchise. By accepting its franchise and becoming signatory hereto, USWC acknowledges that it has not been induced to enter into this Agreement by any understanding or promise or other statement,whether verbal or written, by or on behalf of the City or by any other third person concerning any term or condition not expressed herein. USWC further acknowledges by the acceptance of its franchise that it has carefully read the terms and conditions hereof, and of law, and is willing to and does accept all of the risks of the meaning of such terms and conditions. Section 14. FAILURE OF CITY TO ENFORCE THIS AGREEMENT-NO WAIVER OF THE TERMS THEREOF. USWC shall not be excused from complying with any of the terms or • USWC Agreement. Page 30 L r conditions of this Agreement or of the law by any failure of the City upon any one or more occasions to insist upon or to seek compliance with any such terms or conditions. Section 15. TIME ESSENCE OF THIS AGREEMENT. Whenever this Agreement shall set forth any time for any material action to be performed by or on behalf of USWC, such time shall be deemed of the essence and any failure of USWC to perform within the time allotted shall, subject to any right to cure granted by this Agreement or by law,be sufficient grounds for the City to revoke its franchise, unless the failure to comply is due to excusable delay or is beyond the reasonable control of USWC. Section 16. EQUAL EMPLOYMENT OPPORTUNITY CLAUSE. In addition to that provided by applicable law, and to the extent not inconsistent with the Cable Act, during the performance of this Agreement USWC agrees as follows: (a) USWC shall not discriminate against any employee applicant for employment because of race,religion,color, sex or national origin. USWC shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, religion, color, sex or national origin. As used herein, the word "treated" shall mean and include, without limitation, the following: Recruited, whether advertising or by other means; compensated; selected for training, including apprenticeship; promoted; upgraded; demoted; downgraded;transferred; laid off; and terminated. USWC agrees to and shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. (b) USWC shall, in all solicitations or advertisements for employees placed by or on behalf of USWC, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex or national origin. (c) USWC shall send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice advising the labor union or worker's representative of USWC's commitments under the equal employment opportunity clause of the city and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (d) USWC shall furnish to the contract compliance officer, upon request, all federal forms containing the information and reports required by the federal government for federal 41111 USWC Agreement. Page 31 l / 1 contracts under federal rules and regulations or required by the FCC and,to the extent not otherwise provided, all information required by sections 10-192 to 10-194, inclusive, and shall permit reasonable access to its records. Records accessible to the contract compliance officer shall be those which are related to paragraphs (1) through (7) of this subsection and only after reasonable notice is given USWC. The purpose for this provision is to provide for investigation to ascertain compliance with the program provided for herein. (e) USWC shall take such actions with respect to any subcontractor as the city may direct as a means of enforcing the provisions of paragraphs (1)through(7)herein, including penalties and sanctions for noncompliance; however, in the event USWC becomes involved in or is threatened with litigation as the result of such directions by the city,the city will enter into such litigation as is necessary to protect the interests of the city and to effectuate these provisions [of this division]; and in the case of contracts receiving federal assistance, USWC or the city may request the United States to enter into such litigation to protect the interests of the United States. (f) Upon written request by the City,USWC shall cause his subcontractors,if any,to file compliance reports with USWC in the same form and to the same extent as required by the federal government for federal contracts under federal rules and regulations. Such compliance reports shall be filed with the contract compliance officer. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the subcontractors. (g) USWC shall include the provisions of paragraphs (1) through (7) of this section, "Equal Employment Opportunity Clause," in every subcontract so that such provisions will be binding upon each subcontractor. Section 17. OFFICE. USWC agrees to maintain an office reasonably convenient to and accessible by subscribers served pursuant to this Agreement in the City. USWC further agrees to maintain a local non-toll telephone number for use by subscribers served pursuant to this Agreement. Section 18. SEVERABILITY. If any section, subsection, clause, phrase or portion of this Agreement is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof USWC Agreement. Page 32 e . Section 19. EFFECTIVENESS OF AGREEMENT. This Agreement shall be effective from and after execution by the City and shall remain in effect through the length of the term of the franchise extended to USWC, unless mutually terminated by the parties hereto, or otherwise concluded in accordance with the provisions hereof or applicable law. IN WITNESS WHEREOF,the foregoing agreement is dated thisgeay of i/ , 194 U S WEST Communications,Inc. a Colorado corporation ATTEST j )) By ( `W �'� l Title: Dina k 1.164, - s l�hs-1�e teefsotae 7j" • CITY OF OMAHA, a municipal ATTEST: corporation By it Clerk May• of the City of Omaha APPR VE AS TO FO • Assistant City Attorney P:\LAW\2537.MAP USWC Agreement. Page 33 . 1 1 INTER-OFFICE' COMMUNICATION • June 11, 1996 TO: Mary Galligan Cornett, City Clerk FROM: Austin, Council Staff Assistant SUBJECT: Resolutions Recommending Awarding of Cable Television Franchise to US West Communications Mary, attached are two resolutions in support of awarding US West Communications, Inc . a franchise for a cable television operation within certain areas of the City of Omaha. The first resolution, dated June 10 , 1996, is from the Cable Television Advisory Committee and is signed by their Chairman, William Thompson. The second resolution is from the City Council ' s Cable Television Franchise Committee, chaired by Councilmember Richard Takechi, and is dated June 6, 1996 . Please reflect these two resolutions on the Council ' s June 18, 1996, Agenda when the franchise ordinance for US West comes back before the City Council for second reading and public hearing. • RA/rm Attachments c: (Less Attachments) Tom Mumgaard Lou Andersen w ol r , • RESOLVED BY THE OMAHA CABLE TELEVISION ADVISORY COMMITTEE: WHEREAS, US WEST Communications, Inc., has submitted an application to operate a cable communications system within certain areas of the City of Omaha and has executed an Agreement setting forth terms and conditions of that franchise; and, WHEREAS, pursuant to federal law and regulations issued by the Federal Communications Commission, US WEST Communications, Inc., is currently offering video programming in certain areas of the City of Omaha; and, WHEREAS, federal law, state law, and the Omaha Municipal Code authorize the City Council to grant a cable television franchise to US WEST Communications, Inc.; and, WHEREAS, the application and Franchise Agreement have been reviewed and • evaluated by the Omaha Cable Television Advisory Committee Franchise Subcommittee and that Subcommittee recommends approval of the franchise application; and, • WHEREAS, based upon this. review, the application, and the Franchise Agreement, this Committee determines it is in the best interests of the City that US WEST Communications, Inc., be granted a franchise to operate a cable television system within the • City and the Franchise Agreement should be approved. • NOW, THEREFORE, BE IT RESOLVED BY THE OMAHA CABLE TELEVISION ADVISORY COMMITTEE: THAT, this Committee hereby recommends that the Omaha City Council grant a franchise to US WEST Communications, Inc., to operate a cable television system within the - City in such area and under such conditions and obligations as are expressed in the Franchise Agreement negotiated with the City. ADOPTED this l 0 day of June, 1996. William Thompson, C airman APPRO E AS TO FORM: ��/ r iLt�nG Assistant City Attorney fi INTER-OFFICE COMMUNICATION June 6, 1996 TO: Councilmembers and Lou Andersen FROM: Richard Takechi, Chairman, City Council Cable Committee SUBJECT: US West Communications ' Application for Cable Television Franchise - Council Agenda of June 11, 1996 The City Council ' s Cable Television Committee recommends to the full City Council that the Cable Television Franchise application of US West Communications be approved. Ric and Takechi, Chairman / J1E// re Terry, Cou _•f- !resident committee Me • ea_ '''?.-%'14.-e..-e.:A., Paul Koneck, Committee Member RA/rm c: City Clerk Brinker Harding Tom Mumgaard Council Staff 4 ' • • r'v REQUEST TO LAW DE T ^, ' LAW DEPARTMENT USE ONLY r,) , `) 184-96 = COUNCIL°j LOG BOOK NO. `tri TO: HERBERT M. FITLE, CITY ATTORNEY DATE ASSIGNED 3 June '96 1S DATE : June 3 , 1996 ASSIGNED TO ��� DATE ANSWERED ^�� 7 REQUEST BEING MADE BY: . Austin, Council Staff Assistan On Behalf of Councilmember Richard Takechi 4567 (NAME) (DEPARTMENT) (PHONE) TIME LINE: 12 WORKING DAYS FROM DATE RECEIVED BY LAW DEPT. June 11, 1996, City Council Agenda REQUEST FOR: Ordinance Awarding Cable Television Franchise to US West Communications, Inc . for a Cable Television Operation Within Portions of the City of Omaha • (State Specifically What You Are Requesting) DETAILS: (Do Not State "See Attached" ) Attached is a copy of the Franchise Agreement between the City of Omaha and US West Communications, Inc . This agreement would allow US West Communications to convert its trial video dial tone area in the City of Omaha into a Cable Television operation within the City of Omaha. The terms of the franchise agreement would run from August 1, 1996, through September 3 , 2010 . The Ordinance should be available for the Council ' s meeting of June 11, 1996, at which time it will receive first reading. INFORMATION ATTACHED : YES X NO NONE AVAILABLE RA/rm c : (Less Attachments) Councilmembers, City Clerk, Brinker Harding, Council Staff O • ,,-teW sr° f, FCF1v Cioecd Entertainment.Your way.*M .96 PR 1 15 Fr I • _ CITYyySSCI <_P H I N[. I. April 15, 1996 Mr. Lee Terry President, Omaha City Council Omaha/Douglas Civic Center 1819 Farnam Street, Suite LC-1 Omaha, Nebraska 68183 Dear Mr. Terry, U S WEST Communications, Inc. (USWC) is pleased to submit to the City of Omaha the attached application for a cable system franchise. As you are aware, USWC is currently conducting a"video dialtone trial in portions of Omaha. The Federal Communications Commission (FCC) authorized this trial to run from August 31, 1995, through August 30, 1996. On or before August 30, USWC proposes that the trial transition to a cable system. The passage of the 1996 Telecommunications Act has detailed two options for USWC to provide video services. Both options are regulated under Title VI of the Telecommunications Act. Option one is the open video system regulatory framework, regulated at the FCC level. Option two is a cable system, which requires a local cable franchise. USWC, at this time, is choosing the pursue the cable system option. This application is for those portions of the current video dialtone trial service area located within the City of Omaha. Approximately 20,000 households within Omaha are capable of receiving video dialtone today. As of April 14, 1996, there were roughly 3,900 subscribers within the City of Omaha that were receiving video dialtone trial services. As part of the video dialtone trial, video services are being marketed in Omaha under the U S WEST TeleChoices"' brand name. For the cable franchise operation, USWC will offer services and rates similar to those offered through TeleChoice today. The current office location and customer service standards applicable to TeleChoice will also apply to the cable operation. The office location for TeleChoice is 2441 South 130th Cir., Omaha, and is open for customer visits from 7 a.m. until 10 p.m., seven days a week .Obsr' Weaoec' e/ 411111111.11MEntertainment.Your way.TM Page 2 Mr. Terry April 15, 1996 Subscribers may also call a service consultant regarding ordering, billing, or repair matters twenty-four hours a day, seven days a week. As a cable operator, USWC will maintain the excellent customer service offered by TeleChoice during the trial, meeting or exceeding all FCC customer service standards as well as all other FCC rules and regulations pertaining to the operation of a cable system. USWC also plans to offer programming that is similar to that offered through TeleChoice. Programming will be determined based on local market demand, FCC requirements for carriage of specific types of programming, and the City of Omaha's requirements for public, educational, and government access. Services will be provided over a minimum of seventy-seven(77) analog channels. We look forward to working with you and the City Council to ensure that Omaha's TeleChoice subscribers continue to have a choice of cable providers. Sincerely, )ciitaivi 4 Grant Gabrielson General Manager U S WEST TeleChoice 1 CITY OF OMAHA,NEBRASKA APPLICATION FORMS FOR PROVIDING CABLE COMMUNICATION SERVICES WITHIN THE CITY OF OMAHA RETURN TO: Ms. Mary Galligan Cornett City Clerk City of Omaha Omaha/Douglas Civic Center 1819 Farnam Street Suite LC-1 Omaha, Nebraska 68183 • - a � LIST OF CONTENTS No. of Pages IDENTIFICATION OF APPLICANT 1 APPLICANT'S AFFIDAVIT 1 FORM A: Ownership and Control Information 3 FORM B: Ownership Character Qualifications 3 FORM C: Current and Former Cable Holdings 2 FORM D: Financial Resources 2 FORM E: Service Areas, Construction Schedules, and 3 Construction Investments FORM F: Channel Capacity and System Design 3 Summary of Channel Allocations FORM G: Proposed Signal Carriage and Channel 6 Allocations FORM H: Local Programming 3 FORM I: Subscriber Rates 2 I' IDENTIFICATION OF APPLICANT Name of Applicant: U S WEST Communications, Inc. Address of Applicant: 2441 South 130th Circle (Street) Omaha, Nebraska 68144 (City, State, Zip Code) (402) 691-1800 (Area Code and Number) Date Application Submitted: 4,(;."-Q6 t (19,1 • Legal Character of Applicant: Partnership [ ,] Corporation [V] incorporated in the State of Colorado Individual [ Please give name, title, and telephone number of the person to whom inquiries should be made: Name: Grant Gabrielson, General Manager Telephone: (402) 691-7204 (Area Code and Number) 1 I Authorized Signature: 114 .4 j L kokoA (+1\ame and Title) Date: )40;--() [5, M ' 1 ICI APPLICANT'S AFFIDAVIT This application is submitte d ed for consideration of receiving a cable communication franchise from the City of Omaha, Nebraska. The undersigned representative of the Applicant has been duly authorized to make the representations herein on behalf of the Applicant Applicant recognizes that all representations are binding on it and that failure to adhere to any representations may, at the city's option, result in revocation of any franchise that may be granted in reliance upon this information. Consent is hereby given to the city to inquire into the legal, character, technical, financial and other qualifications of Applicant by contacting any persons or organizations named herein as references, or by any other appropriate means. Applicant certifies that the cable system described herein is, and at all times during the requested franchise period will be, in full compliance with all applicable technical rules, regulations, standards and operating policies for facilities and services of the FCC for cable television systems. Applicant further certifies that appropriate representatives of the Applicant have read and are familiar with Article III, of Chapter 19 of the Omaha Municipal Code governing cable television service in Omaha, and agrees that it will comply with same except as said Code is superseded or preempted by federal law and any subsequent ordinances adopting or ratifying an agreement for cable franchise. Applicant's Name: Grant Gabrielson Affiant's Signature: '' )1\latILL- , Position: General Manager 4:M1ERAI.FURY-State of 5r�ka r DARRELL L.HALFORD 4 Date: 'Vs y Comm.Exp.June 20,1999 (le ;--"(---CZ Attest: Form A Page 1 of 3 FORM A: OWNERSHIP AND CONTROL INFORMATION (Reproduce additional forms if needed.) 1. The following information must be given on behalf of all officers, directors, trustees, and general or limited partners of Applicant, and for persons or entities having an ownership or beneficial interest of one (1) percent or more in Applicant. USWC RESPONSE: Ownership and control information for U S WEST Communications, Inc., a Colorado corporation, may be found within the U S WEST Annual Report (Attachment 1). USWC is a wholly-owned subsidiary of U S WEST, Inc., a Delaware corporation which is publicly held and traded on the New York Stock Exchange. Name (if individual): (if organization): Address: (Number) (Street) (City) (State) (Zip) Nature of Interest or Position Held in Applicant: [ ] Stockholder/Owner [ ] Partner [ ] Corporate Director [ ] Officer: [ ] Other: Professional or Occupation: Name of Employer: Address of Employer: Percentage of Ownership of Beneficial Interest in the Applicant: Form A Page 2 of 3 . 2. Each organization or corporation with an ownership or beneficial interest of greater than orie percent (1%) in the Applicant (not individuals) must provide the following information for all: (1) principals; (2) officers; (3) corporate directors; and, (4) beneficial owners of three percent (3%) or more of its stock or ownership interest if the stock is not traded on a public stock exchange or beneficial owners of more than twenty-five percent (25%) of its stock or ownership interest if stock is traded on a public stock exchange. USWC RESPONSE: U S WEST,Inc.is the sole shareholder of U S WEST Communications, Inc. U S WEST, Inc. is publicly held and traded on the New York Stock Exchange. There are no persons or organizations that own more than twenty-five percent(25%) of the U S WEST, Inc. stock. Name of Organization: Address: (Number) (Street) (City) (State) (Zip) Nature of Ownership Name Address Interest Percent 1 Form A Page 3 of 3 3. Provide a summary of any agreements written or oral, pertaining to the nature and extent of any person's or entity's ownership interest in the Applicant or any organization or corporation with an ownership or beneficial interest of greater than one percent (1%) in the Applicant. This summary should include an identification of the parties to the agreement, the terms of the agreement, whether the agreement directs the transfer of ownership or equity interests in the organization or corporation, the purpose for which the agreement was entered into, and the agreement was entered into, and the date the agreement terminates. USWC RESPONSE: There are no agreements of this nature. Form B Page 1 of 3 . FORM B: OWNERS CHARACTER QUALIFICATIONS 1. Has the Applicant (including parent corporation if applicable) or any principal' been convicted in any jurisdiction of any of the following offenses during the tern of the existing franchise with the City of Omaha? a. Fraud [ ]yes [4] no b. Embezzlement [ ]yes [J] no c. Tax Evasion [ ]yes [4] no d. Bribery [ ]yes [J] no e. Extortion [ ]yes [J] no f. Jury Tampering [ ]yes ["I] no g. Obstruction of Justice (or other misconduct affecting [ ]yes [4] no public or judicial officers performance of their official duties) h. False or Misleading Advertising [ ]yes [ ] no i. Perjury [ ]yes [J] no j. Antitrust Violations (state or federal) [ ]yes [4] no k. Violations of FCC Regulations [ ]yes [I] no 1. Conspiracy to Commit Any of the [ ]yes [SI] no Crimes Listed Above 2. If "yes," attach a separate statement providing the date, court, sentence or fine, for each conviction and an explanation of the circumstances leading to the conviction. 'For purposes of this form, "principal" means any officer or director of Applicant, and any person, firm, corporation, partnership,joint venture, or other entity owning or controlling 3 percent or more of the voting stock (or any equivalent voting interest of a partnership or joint venture) of an Applicant whose stock is not publicly traded or more than 25 percent of the voting stock or similar interest in an Applicant whose stock is publicly traded. Form B Page 2 of 3 3. Has the Applicant or any principal been a party to a civil proceeding in which it was held liable for any of the following? a. Unfair or Anti-competitive Business [ ] yes hi] no Practices b. Violations of Securities Laws (state and [ ] yes [i] no federal) c. False or misleading Advertising [ ] yes [i] no d. Violations of FCC regulations [ ] yes hi] no 4. If "yes," attach a statement providing specifics. 5. Has Applicant or any principal had any FCC license or [ ] yes hi] no cable television franchise revoked, suspended or the renewal thereof denied (including pending proceedings that may result in such action)? 6. If"yes," attach a statement providing specifics. 7. Has Applicant or any principal, as a result of an [ ] yes [i] no adjudicated proceeding, been found in violation of any franchise agreement, contract, or regulation (other than routine service complaints) governing any cable communication system owned or operated by them? 8. If"yes," attach a statement providing specifics. 9. Has applicant or any principal ever initiated litigation [ ] yes hi] no against a franchising authority or had a franchising authority initiate litigation against it? 10. If "yes," attach a statement providing specifics. Form B Page 3 of 3 11. Attach to this form a copy of current affirmative action program, if any, you have filed with the FCC pursuant to section 73.301(c) of the Code of Federal regulations. If no such program statement has been filed, please explain. USWC RESPONSE: USWC has not yet been required to file an affirmative action program with the FCC pursuant to section 73.301 (c). This program statement will be filed, as required by the FCC, prior to or at the time USWC begins cable operations in Omaha. The City of Omaha will be provided with a copy of this filing at that time. USWC will comply with all applicable federal, state, and local laws regarding nondiscrimination in the operation of its cable system in Omaha. r Form C Page 1 of 2 FORM C: CURRENT AND FORMER CABLE HOLDINGS OWNED BY APPLICANT Please list all holdings (franchises and systems) in which Applicant or any principal* owns 1 percent or more of equity interest. (If additional pages are needed, please reproduce this form.) USWC RESPONSE: USWC does not own 1 percent or more equity interest in any franchises or systems.' Location of System Date of Franchise Award or Acquisition Plant Miles of System Date Construction Completed Percentage of System Ownership Held Holder of Controlling Ownership Interest Current Basic Sub- scriber Rate** Name and Address of Local Government Officials Responsible for Cable Operations *For purposes of this form, "principal" means any officer or director of Applicant, and any person, firm, corporation, subsidiary, joint venture or other entity, who or which owns of controls 1 percent or more of the voting stock (or any equivalent voting interest of a partnership or joint venture) of an Applicant whose stock is not publicly traded or more than 25 percent of an Applicant whose stock is publicly traded. **If system offers tiers of basic service, provide the rate for the highest tier of basic service including converter. USWC Note 1: In 1994, U S WEST, Inc. purchased the Atlanta Cable properties, now known as Media One. MediaOne operates cable systems in the Atlanta, Georgia, region that serve approximately 527,000 subscribers. Additional information about MediaOne may be found in U S WEST's Annual Report (Attachment 1). Form C Page 2 of 2 FORMER CABLE FRANCHISES List every community where Applicant or any principal* has received a cable television franchise or operated a cable system without a franchise and subsequently disposed of all or a majority of its interest. (If additional pages are needed, please reproduce this form.) USWC RESPONSE: There are none that meet these criteria. Date of Date of Reason and Manner Name of System Community Frse Frse of Disposition Award Dts�pion *For purposes of this form, "principal" means any officer or director of Applicant, and any person, form, corporation, subsidiary,joint venture or other entity, who or which owns or controls 1 percent or more of the voting stock (or any equivalent voting interest of a partnership or joint venture) of an Applicant whose stock is not publicly traded or more than 25 percent of an Applicant whose stock is publicly traded. Form D Page 1 of 2 . . FORM D: FINANCIAL RESOURCES Please describe in detail the financing plan for any construction of the cable communications system if your franchise is awarded. You must demonstrate your financial ability to complete any anticipated construction of the system during the franchise period. Proof of financial capability shall include the following: USWC RESPONSE Based on the fact that the. Omaha system was built for the current video dialtone trial, a financing plan for the system is not required. USWC does not currently plan to expand or extend the system. Construction of the existing system was funded from the retained earnings and debt of USWC. USWC's financial resources are described in the attached Annual Report. 1. Source of Financing: a. Equity--What is the source and amount of equity capital? b. Primary Debt--What is the primary source of debt? c. Secondary Debt--What is the secondary source of debt? 2. Terms of Financing: a. Amount--Primary $ Period Amount--Secondary $ Period b. Under what conditions is the financing to be made available? c. Are there related agreements made in connection with financing of this project? If so, please describe the terms of the agreements. d. Are there any buy-out or buy-back stock provisions which can be exercised during the franchise period? Describe the provisions. 1 Form D Page 2 of 2 e. Are there any assignments or intended assignments of stock voting rights expected during the franchise term? If so, describe. 3. Attach to this form your balance sheet and profit-and-loss statement current within ninety days of the day the form is submitted. Form E Page 1 of 3 . FORM E: SERVICE AREAS, CONSTRUCTION SCHEDULES AND CONSTRUCTION INVESTMENTS 1. Supply a map showing all areas to be served either within the City of Omaha or outside the City of Omaha. Also indicate any additional areas to which you expect to expand service during the franchise term, showing the dates upon which such expanded services is anticipated to be available to subscribers. Show the existing or proposed location of the receiving tower or antennas, microwave facilities, earth stations, head-end equipment, hubs, studio, office, and maintenance and construction facilities. Indicate existing and proposed trunk cable lines. USWC RESPONSE: The current video dialtone service area is outlined on the attached map (Attachment 2). The map is divided into individual grids that are each numbered. A computer disk with a list of addresses that the system is capable of serving, sorted by individual grid number, is provided as Attachment 3. This list includes all serviceable address within the current trial area,not just those within the City of Omaha. Construction on the system is complete; it was built for a video dialtone trial. The build and the trial area were approved by the FCC as part of its Section 214 process. and include areas in the City of Omaha, and Douglas and Sarpy counties. Within the trial area, this system is not capable of providing service to all locations within the outlined area of the map (Attachment 2), i.e., there are various pockets, such as business-only areas, that the network cannot serve. (a) Please state your reasons for excluding any areas from your current or expected service area and set forth, in detail, your line extension policies to be followed during the franchise term. 2. For all anticipated construction during the franchise term, show your construction schedule by mileage. (Basic Subscriber Network Only). USWC RESPONSE: USWC does not anticipate any further construction during the term of the franchise. Category Year 1-3 Year 4-6 Year 7-9 Year 10-12 Year 13-15 a. Aerial plant miles b. Underground plant miles with conduit c. Underground plant miles w/o conduit d. Cumulative plant miles completed e. Cumulative percent- age completed NOTE: Year 1 begins on the date the franchise is awarded. Form E Page 2 of 3 . 3. For all anticipated new capital investment, show the anticipated investment for each item. Item Year 1-3 Year 4-6 Year 7-9 Year 10-12 Year 13-15 a. Antennas and Towers b. Microwave c. Headend d. Earth Station e. Aerial Distribution Network f. Underground Distri- bution Network g. Institutional Net- work h. Converters i. Buildings j. Leasehold Improve- ments k. Real Property 1. Studios m. Mobile Origination Vans & Equipment n. Test Equipment o. Other (describe on separate page) NOTE: Year 1 begins on the date the franchise is awarded. Form E Page 3 of 3 4. State your anticipated capital investment for construction or upgrading of the cable communications system during the franchise term. USWC RESPONSE: As of September, 1995, the beginning of the market portion of the current video dialtone trial, USWC had invested $37.1 Million in capital for the video only portion of the current network. The build was substantally completed at that time. Year 1-3 $ Year 4-6 $ Year 7-9 $ Year 10-12 $ Year 13-15 $ TOTAL $ 5. State your anticipated system growth during the franchise term. Category Year 1-3 Year 4-6 Year 7-9 Year 10-12 Year 13-15 a. Households in the Franchise Area 20,000 20,000 20,000 20,000 20,000 b. Average No. of Basic Subscribers 4,900 5,200 5,400 5,600 5,600 c. Average No. of Second Set Subscribers NA' NA' NA' NA' NA' d. Average No. of Pay Cable Subscribers2 2,744 2,912 3,024 3,136 3,136 e. Penetration: Percentage of Homes Passed By Cable Subscribing to Service (i.) Basic Cable Subscribers 24.5% 26.0% 27.0% 28.0% 28.0% (ii.)Pay Cable Subscribers2 13.7% 14.6% 15.1% 15.7% 15.7% USWC Notes: 1. USWC does not currently anticipate having this category of subscriber. 2. Listed in this category are the number and percent of subscribers with premium services. NOTE: Year 1 begins on the date the franchise is awarded. Form F Page 1 of 3 FORM F: CHANNEL CAPACITY AND SYSTEM DESIGN SUMMARY OF CHANNEL ALLOCATIONS Briefly describe the programming or services presently offered on each of the cable channels you will offer. Include local origination and public access programming Please indicate clearly the divisions between various "tiers" of cable service, if appropriate. Indicate which, if any, of the channels are required by pertinent FCC regulations, such as must-carry rules. (I.e., Channel 2-- WXYZ, Washington, D.C.; Tier I; FCC required. Channel 3-Public Access/Bulletin Board; Tier III). USWC RESPONSE: Services offered by the USWC cable operation will be similar to those presently offered by TeleChoice. An illustrative list of services is provided in Attachment 4. Actual services will differ from those on the illustrative list and may be based on the following: - Cost and availability of programming; - FCC requirements for the retransmission of local commercial television broadcast signals and non-commercial educational stations, and the reservation of system capacity for commercial leased access; - The City of Omaha's requirement for public, educational, and government (PEG) access; and - Local market demand. * BASIC ** EXTENDED BASIC ***PAY SERVICE Cable Designated Programming/ Channel Service (If additional pages are needed please reproduce this form) Form F Page 2 of 3 . CHANNEL CAPACITY AND SYSTEM DESIGN 1. Present System Design: Total Plant Miles a. Cable "A"--basic subscriber system b. Other Cable (explain) USWC RESPONSE: Please see Attachment 5 which describes the channel capacity and system design of USWC's system. 2. Describe your distribution system, cable, and equipment including converters, addressable taps, etc. (if any) as it exists at the time of application. 3. Describe changes you anticipate making in your distribution system, cable, and equipment including converters, addressable taps, etc. during the franchise term. 4. Present channel capacity to and from subscribers (Cable "A"). a. Downstream: (1) Frequency Spectrum -MHz (2) Channel Capacity (3) Number of Channels Activated b. Upstream: (1) Frequency Spectrum -MHz (2) Channel Capacity c. Is upstream transmission currently activated along any portion of Cable A? [ ] Yes [ ] No If"yes," please explain. Form F Page 3 of 3 . 5. Additional channel capacity to and from institutions (Cable "B") (if any). a. Downstream: (1) Frequency Spectrum (2) Channel Capacity (3) Number of channels activated b. Upstream: (1) Frequency Spectrum -MHz (2) Channel Capacity (3) Number of channels activated 6. Describe in detail any anticipated changes to the channel capacity and system design if your franchise is awarded. 7. Technical Standards. If you propose to institute, or have instituted, technical standards beyond the minimum required by the FCC, describe these in detail. Any technical standards offered by you that exceed the minimum requirements of the FCC will be expected to be delivered as part of the City of Omaha, Nebraska Franchise. 8. System Maintenance Procedures. Describe your procedures for routine preventive maintenance, including type and frequency of system inspection and testing, number and qualifications of technical staff, and service facilities. 9. Customer Complaint Resolution Procedures. Discuss your procedures for responding to and resolving customer complaints, including any deadlines or schedules for resolving complaints. Form G Page 1 of 6 FORM G: PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS SERVICE TIER NO. (if applicable) Please provide the following information for all signals you anticipate having in your channel lineup. If you anticipate channels for which you are not able to provide specific information, please give general descriptive information for any such anticipated channels. E.g., Channel 75: Pay per view; movies. If you are proposing multiple tiers of service, complete a separate Form G (pages 1 through 6) for each tier. USWC RESPONSE: Services offered by the USWC cable operation will be similar to those presently offered through U S WEST TeleChoice during the Omaha video dialtone trial. An illustrative list of services is provided in Attachment 4. Actual services will differ from those on the illustrative list. 1. Broadcast Television Channels (indicate no. of hours if carried less than full-time): *Network City Call Broadcast Cable **Proposed Affiliation of Origin Letters Channel Channel Activation Date *For example, ABC, CBS, NBC, PBS, independent, other. **Specify proposed activation date if other than initial date. Form G Page 2 of 6 . PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) 2. Nonbroadcast Channels (does not include pay cable services) a. Automated Programming (e.g., time, weather, news, slo-scan news, sports, stock market, etc.) Cable Hours Per Service Source Channel Day (est.) Form G Page 3 of 6 PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) 2. Nonbroadcast Channels (does not include pay cable services) b. System originated programming (not via satellite) includes programming locally produced, purchased, leased or obtained from other sources (excluding public access). Cable Hours Per Service Source Channel Day (est.) Form G Page 4 of 6 PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) 3. Designated Public Access Channels (channels set aside for non-operator-originated local programming. Cable Hours Per Type* Channel Day (est.) *e.g., public, local government, educational, leased, composite (list composite uses), or any other specific allocation contemplated. 1 5 Form G Page 5 of 6 . PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) 3. Pay Cable Service Offered a. Per Channel Service Cable Hours Per Type* Source Channel Day Available *For example, first-run movies, regional sports, classic movies, etc. Form G Page 6 of 6 . PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) 3. Pay Cable Service Offered (cont'd) b. Per Program Service Cable Hours Per Type* Source Channel Day Available *For example, first-run movies, regional sports, classic movies, etc. Form H Page 1 of 3 . FORM H: LOCAL PROGRAMMING LOCAL PUBLIC ACCESS PROGRAM PRODUCTION EQUIPMENT AND FACILITIES Please list all studio facilities and equipment which will be provided for local public access program production. Please indicate the location of production facilities and list the equipment that will be available at the location for public access use. USWC RESPONSE: USWC will carry the PEG channels required by the City of Omaha and proposes to obtain that programming through interconnection with an existing franchise operator in Omaha, provided that an arrangement acceptable to both parties can be reached, and/or through direct connection with the programming source. 1. Local Origination Studio: a. Location (approximate): b. Size (approximately): 2. Local Origination Equipment List (provide make and model number*): *It will be presumed that equipment described or its equivalent will be provided. As an alternative, you may provide detailed specifications for such equipment. 1 1 Form H Page 2 of 3 . COMMITMENT TO LOCAL ORIGINATION AND PUBLIC ACCESS PROGRAMMING* 1. Please provide the anticipated operating budget which will be committed to local origination and public access programming (include only salaries, benefits, maintenance of production equipment, tape and film stock, miscellaneous supplies and promotion): a. First Year $ b. Third Year $ c. Fifth Year $ d. Tenth Year $ e. Additional Years $ (if applicable) 2. Staff Commitment Full-time Part-time a. First Year b. Third Year c. Fifth Year d. Tenth Year e. Additional Years (if applicable) 3. Approximately how many hours per week of local origination programming do you presently offer? Do not include automated programming, pay programming or programming received via satellite, nor repeat showings of a particular program. a. Programming produced locally by operator hrs/week b. Programming obtained from other sources hrs/week Total hrs/week *This specifically excludes programming obtained via satellite. Form G Page 3 of 3 . 4. What percentage of operating budget listed above will be allocated to public access production assistance? percent • Form I Page 1 of 2 . FORM I: SUBSCRIBER RATES 1. List below your present rate schedule for basic subscriber services, commercial rates, multiple dwellings, etc. If different tiers and options are offered, detail charges for the specific tiers. USWC RESPONSE: Rates charged by the USWC cable operation will be similar to those presently charged through U S WEST TeleChoice during the Omaha video dialtone trial. Attachment 6 is a TeleChoice brochure which lists the current rates charged by Interface Communications and Cable Video Store, the two providers on the current video dialtone network. USWC reserves the right to set and change its rates subject to such rate regulation as may be permitted under federal law. 2. State the estimated percentage of increase or decrease (compared to the immediately preceding year) for any rate increases or decreases anticipated during the term of the franchise. On a separate page you may offer any explanation of these anticipated increases or decreases or the method used to arrive at the estimates. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Additional Years (if applicable): Year 11 Year 12 Year 13 Year 14 Year 15 �_�__ - w Form I Page 2 of 2 3. Identify all other services you presently offer which are not otherwise identified in this information and for which any fee is charged to subscribers. List, by service, the rates that you presently charge for the service. Include charges, if any, for lock-out devices, transaction fees, and equipment installation. Indicate whether the charge is assessed monthly or on another basis. For each- rate listed indicate any increases or decreases anticipated during the franchise term. 4. Attach to this application a copy of the standard subscriber contract which will be used by you. • Attachments to Application Forms for Providing Cable Communications Services Within the City of Omaha Number Title 1 U S WEST, Inc. 1994 Annual Report 2 Service Area Map 3 Address List (Disk) 4 Illustrative List of Services 5 Channel Capacity and System Design 6 U S WEST TeleChoice Channel Line-up & Price List Attachment 1 U S WEST Annual Report Attachment 5 Channel Capacity and System Design The integrated video/telephony network deployed for USWC's video dialtone trial will also serve the Omaha cable operation as well as continuing to provide some portions of telephony service in the franchise area. The video dialtone network is a dual cable hybrid fiber/coax (HFC) system with a"star-star-bus" topology used to deliver video services to subscribers. In this topology, fibers are brought from the headend to nodes of approximately 400 homes (passings). From each 400-home node, two coaxial cables carry video to pedestals serving six to eight passings. The coaxial cables from the pedestals to the homes consist of"A" and`B"cables. The A cable is cable is a subsplit architecture with both downstream channels and upstream signaling and is designed with 686 MHz of capacity,currently accommodating 77 analog channels. The B cable is designed with 750 MHz of capacity and has been used to provide digital trial services. In the future, video services may be offered over just the A cable. In addition to the A and B cables, the pedestal contains an interdiction device that is used on the A cable to give USWC control of its subscribers' access to analog channels 14 through 78. The interdiction device secures programming without scrambling the video signals. The unscrambled nature of the signals allows for direct connection to any cable-ready subscriber device, and provides the same level of authorized services to each in-home device. In addition, picture quality is improved in the absence of scrambling-related picture artifacts. A state-of-the-art status monitoring system is integrated into the network to ensure that problems within the network can be detected as quickly as possible. It enables U S WEST to anticipate potential outages and correct many problems before the subscriber has a loss or degradation of service. Each active (i.e., powered) network component is connected to the monitoring system. USWC will operate the Omaha system in full compliance with all FCC technical rules, regulations, standards, and operating policies for facilities and service. r s Attachment 6 U S WEST TeleChoice Channel Line-up & Price List o y Attachment 4 Illustrative Channel Line-Up Today, as part of the Omaha video dialtone trial, the following programming is offered by Interface Communications and Cable Video Store. Programming offered by U S WEST Communications (USWC) under a cable franchise operation may be similar to that listed below. Programming will conform to all applicable FCC rules and regulations. In addition, USWC reserves the right to select and change programming at its discretion. Chnl Chnl Chnl No. Programming No. Programming No. Programming 2 KHIN (PBS) 28 CNN 54 FLIX 3 U S WEST Menu 29 ESPN 55 TNT 4 Home Shopping Ntwk 30 ESPN2 56 A & E 5 KMTV (CBS) 31 TBS 57 Lifetime 6 C-SPAN-2 32 Classic Sports Ntwk 58 Turner Classic Movies 7 Prevue Guide 33 Prime Sports 59 USA Network 8 WOWT(NBC) 34 The Golf Channel 60 Comedy Central 9 KETV (ABC) 35 WGN 61 History Channel 10 KPTM (Fox) 36 FIT TV 62 EWTN/TBN 11 KXVO (Ind.) 37 Sci-Fi 63 The Nashville Ntwk 12 KYNE(PBS) 38 Discovery Channel 64 Country Music TV 13 C-SPAN 1 39 Nickelodeon 65 VH-1 14 HBO 40 TV Food Network 66 Black Entertainment TV 15 HBO 2 41 Nostalgia 67 MTV 16 HBO 3 42 Previews 68 Pay-Per-View 17 Cinemax 43 Disney Channel 69 Pay-Per-View 18 Cinemax 2 44 Faith & Values 70 Pay-Per-View 19 CNNfn/CNNI 45 Learning Channel 71 Pay-Per-View 20 CNN Headline News 46 Cartoon Network 72 Pay-Per-View 21 Weather Channel 47 Home & Garden 73 Pay-Per-View 22 CNBC 48 Family Channel 74 Pay-Per-View 23 E!Entertainment TV 49 Travel Channel 75 Pay-Per-View 24 QVC 50 Showtime 76 Pay-Per-View 25 MEU/JCN 51 Showtime 2 77 Pay-Per-View 26 Court TV 52 Showtime 3 78 Pay-Per-View 27 TCTV 53 The Movie Channel Attachment 3 List of Serviceable Addresses • The attached disk contains all the serviceable address in U S WEST Communications' current trial area. • Instructions for use the disk are as follows: - The information on the disk was compressed by using an application named PKZIP. - Ensure that there is at least 5.1 megabytes of space on the PC being used. - Open the directory of the file in which the document is to be saved. - At the DOS prompt type: pkunzip A:\Addr.zip*.* Attachment 2 Service Area Map ' _ m fa ,•m• c: - f, C G Q r 1 m r. s ni 0 D Z XI 0 0 nt it Z i"'' SL CC) x S= fD 0 0- CD << CD •S o CD ram+• CDD CCDD C0 CD m- a 6 N N = cc+VI a = C) 0) 0) a) N "O 1:3 C S) fD J•co) f--( A i CD C O CD m CCD CD CDD fl, O 0 D- c+ • r 0 cam. 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