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Ordinance 1980-01 ORDINANCE 80-1 AN ORDINANCE ~mNDING ORDINANCE NO. 78-20; PROVIDING FOR THE GRANT OF A FRANCHISE TO MEDIA SYSTEMS, -INC., ITS SUCCESSORS AND ASSIGNS, TO CONSTRUCT, OPERATE AND MAINTAIN A COMMUNITY ANTENNA TELEVISION SYSTEM IN THE CITY AND SETTING FORTH CONDITIONS ACCOMPANYING THE GRANTING OF THE FRANCHISE; AND PROVIDING FOR AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: This ordinance shall, after its passage and acceptance by the City Council of the City of Wylie, Texas, amend Ordinance No. 78-20 in its entirety, and shall hereafter be known and cited as the "Community Antenna Television Franchise Ordinance". For the purposes of this ordinance, 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 includes the singular number, and words in the singular number include the plural number. (a) City is the City of Wylie, Texas. (b) Council is the City Council of Wylie, Texas. (c) Community antenna television system or CATV system, whenever used in this ordinance, shall mean a system for the interception, receipt, sale, transmission and distribution of television and radio signals. (d) Grantee is Media Systems, Inc., or anyone who ~succeeds in accordance with the provisions of this franchise. Grantee is also referred to herein as Company. (e) Person is any person, firm, partnership, association, corporation or organization of any kind. SECTION 2: There is hereby granted to Media Systems, Inc., hereinafter called "Grantee", for the term of fifteen (15) years from the effective date of this ordinance, the right and privilege to construct, erect, maintain and operate towers, poles, wires, anchors, cables, manholes, conduits, and other electronic equipment along, across, on, over, ..... through, above and under the public streets, avenues, alleys, roads and highways and other public places of the City, for the purpose of operating a community antenna television system to the extent that the City may lawfully permit the use of the above described properties for the purposes enumberated. This grant is further made subject to the right of the City to cancel the grant and permit in the event of violation by the Grantee herein of any of the terms and provisions of this Ordinance or in the event said Grantee herein fails to complete, keep and perform any of the terms and p~ov~s~ons of t.his ordinance. SECTION 3: The Grantee must have begun construction on the community antenna television system on or before July 11, 1980 and must have customer service available within 6 months from that date; otherwise this ordinance shall be null and void. SECTION 4: In order to protect the City from any damage to any public streets, avenues, alleys, roads and highways, and other places of the City resulting from the installation by the Grantee of any towers, poles, wires, anchors, cables, manholes, conduits, and other equipment, the Grantee shall require any Company or-Companies performing such installation to purchase and deliver to Grantee a perfo~ance bond in the amount of Twenty-Five Thousand Dollars ($25,000.00), which performance bond shall be filed by Grantee with the City prior to the commencement of any work by said Company. SECTION 5: The services furnished by the Grantee shall be first class services and the same shall be furnished to each person within the City, within reasonable reach of its facilities and within reasonable time after demand for such service has been made, upon equal.and exact terms for the same class of service. SECTI~N 6: The Grantee shall comply with all rules and regulations now in force or which may hereinafter be put into force with respect to proper installation and construction of lines, cables, wiring and other electronic equipment -authorized by this permit and grant. The Grantee shall use only new cables and equipment with such shielding and protective devices as m~y.be necessary to insure the best possible service and with the least possible interference. The Grantee shall, at its own cost and expense, move its lines, cables, wiring, towers and other appurtenances to other locatio~s when the City through its authorities, may require such removal for the safety and convenience of said City and other franchise holders and inhabitants affected thereby, or when it is deemed necessary by City to widen, relocate, reconstruct or improve a street, way or public place. In those areas where telephone and electric service lines are underground, the Grantee shall place its cables and service lines underground. In the , . . ~~ .' .- . . event the Grantee, after notice, fails or refuses to act, the City shall have the power to remove or abate the same at the expense of the Grantee, all without compensation or liability for damages from the City to the Grantee. SECTION 7: All installations made by the Grantee shall be made in good, substantial and safe condition and shall be maintained in such condition at all times. The Grantee shall make no excavations in the streets, alleys, or other public places without first obtaining a written permit from the City or its agent or representatives. The surface of any street, alley or other public place disturbed by the Grantee in constructing, erecting, maintaining, operating o~ repairing its system shall be restored immediately by the Grantee after completion of the work to as good a condition as before the commencement of the work, and such surface shall be maintained at the cost of the Grantee to the satisfaction of the City for a period of one (l) year from the date such surface of said street, alley or public place is broken or excavated for such construction or maintenance work, after ~hich time responsibility for the normal maintenance of such surface shall become the duty of the City. SECTION 8: The Grantee shall, at all times during the existence of this franchise, carry and require its contractors to carry insurance as follows: (a) Worker's Compensation Insurance in accordance with the Laws of the State of Texas. (b) Public Liability Insurance, with limits in the amount of $lOO,OOO.OO for each person, $500,000.00 for each accident, and $100,000.00 property damage liability. In case the City is impleaded in any suit by reason of any alleged accident or omission of .the Grantee, its successors or assigns, the City shall be entitled to judgment over and against the Grantee, its successors or assigns, in such amount as may be obtained against the City, by reason thereof, provided due written Notice is given the Grantee, its successors or 9ssigns, on the filing of said suit, so that proper defense may be made to said action or suit. 4 (c) The Grantee shall defend the City against all lawful claims for injury to any person or property caused by the negligence of the Grantee in the construction or operation of its property, and in the event of a determination of liability shall indemnify the City; more particularly the Grantee herein, its successors and assigns, does hereby agree to indemnify and hold harmless the City from any and all liability, claim, demand or judgment growing out of any injury to any person or property as a result of the violation or failure on the part of the Grantee, its successors and assigns, to observe their proper duty or because of negligence in whole or in part arising out of construction, repair, extension, maintenance, or operation of its equipment of any kind or character used in connection with this franchise. ,..... " SECTION 9: The Grantee shall pay the City an annual sum equal to three percent (3%) of its gross receipts received by the Grantee from all its collections for basic service from said community antenna television system in said City. The said gross receipts shall be computed annually and ~~ounts due to the City shall be paid on or before the l5th day of January, provided, however, that the final payment to the City after the termination of this franchise shall be made within fifteen (15) days after the date of said termination. The City shall have the right and privilege by and through its auditor or other persons designated by it to freely examine the books, vouchers, and records of the Grantee, its successors or assigns, during normal business hours, in order to determine the amount to be paid to the City under the provisions of this ordinance. In the event the City shall grant an option to renew or extend this franchise as provided in Section l8 (b), the percentage of gross receipts payable hereunder may be renegotiated between City and Grantee. SECTION lO: (a) Grantee shall furnish reasonably adequate service to the public at reasonable rates and charges; therefore, rates are to be determined by the Company and to be consistent with industry rates. Granteeshall submit to Council, in writing, a notice of rate change at least 60 days prior to any change in rates charged by the Grantee for basic services, such notice to include detailed reasons for any increase in rates. Grantee shall notify subscribers, in writing, at least 30 days prior to any increase in rates charged by the Grantee for basic services. "Basic services" shall be defined as the installation fees and monthly subscriber fees and do not include any premium options such as paid television service, extra sets, two-way capability service or any other ancillary options offered in the future paid for in addition to basic service, provided such options do not involve the use of the City property to install and maintain such optional equipment or service. (b) The Grantee shall not, as to rates, charges, service, facilities~. rules, regulations or in any other respect, make or grant any preference or advantage to any person nor subject any person to any prejudice or disadvantage, provided that nothing in this contract shall be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification would be entitled. (c) The proposed initial rates and charges for customer service are set forth in Exhibit "A" attached hereto. ~_r SECTION ll: The Grantee shall furnish those channels reserved for education and public use free of charge to all public schools as well as public buildings and facilities in the City. Major trunk and distribution cables will be routed near these installations, where possible, or where the cable system is in the area, feeder lines will be extended to a service point outside the school or public building. All attachments to schools and public buildings and facilities shall be at the Grantee's expense, but distribution of the system within these buildings shall be at the expense of the schools or responsible public agencies. It is further understood that service to schools and public buildings and facilities will be supplied in a logical extension of the system into each area rather than construction specifically serving a school, because of the cost and extended time required to build a complete system. The Grantee shall, as requested by the City in each specific instance, provide the use of one or more video and/or audio channel(s) to permit fire, police, civil defense and municipal authorities to make official public service and emergency announcements and programs. Such TV camera equipment, microphone(s) and other essential program origination equipment, if any, shall be maintained at the Grantee's control center or head-end, and such technicians who are normally present at the Grantee's control center or head-end at the time of the official public service, emergency announcement, or program is made, shall be available to such authority or authorities without charge to the City. The system shall be constructed to provide for an all channel audio override by the emergency - public service channel. SECTION 12: In addition to the channels above provided, the Grantee shall to the extent permitted by law provide the following services: (a) Provide two-way system capability; (b) Distribute all signals and telecasts originating locally, providing educational and governmental access channels; (c) Distribute and provide a channel for local use, local information, local weather, and time; (d) Carry the channels shown on the attached Schedule "B"; (e) The system shall be interconnectable with other systems in the area; (f) The system will be built to provide for carriage of a maximum of 35 channels; (g) Grantee shall at all times maintain in the City a sufficiently competent staff to adequately service all of its equipment in use during all hours of telecast distribution. (h) Grantee shall maintain a local office with studio faci- lities available. Said office is to be open during normal business ho~rs and have a telephone with public listing for~ro~tnt complaints and so operated that complaints and requests for repairs or adjustments maybe received on a 24-hour basis. SECTION 13: Grantee shall file a complete system map with the Director of Public Works of the City of Wylie, Texas, updated every year showing location of the Grantee's facilities within the City. SECTION 14: The Grantee shall provide the City a copy of its independent audit on an annual basis when said audit is received by Grantee. ~ SECTION 15: The Grantee shall, at all times during the life of this franchise be subject to all lawful exercise 'of the police power by the City and obey all lawful exercise of the police power by the City and obey all ordinances related thereto. Grantee shall maintain and operate the CATV system according to all pertinent rules and regulations of the Federal Regulatory Commission or agency having jurisdiction in respect to any matters affecting CATV operations authorized pursuant to this franchise. SECTION l6: The Grantee is expressly prohibited from entering into any service or sales contract with any residential ~ubscriber for the repair or sale of television receivers. SECTION 17: This franchise is not exclusive and nothing herein contained shall be construed to prevent the City from granting any other like privilege to any other person. SECTION l8: At the expiration of the term for which this franchise is granted, or upon its termination and c~ncellation, as provided herein, the City shall have the ~ight to exercise one of the following options: ; (a) Require the Grantee to remove at its expense all portions of the CATV System from all public ways within the City to be completed within one (1) year after said termination or cancellation. (b) If notice is given to City within six (6) months of the end of the initial l5-year term or additional terms hereof, grant the Grantee an option to continue an additional ten ClO) years under this franchise, provided City determines after public hearing that Grantee's service has been adequate. In the event that the City refuses to give Grantee the option referred to in sub-paragraph (b) above, and Grantee obtains an offer from a third party to purchase said CATV System, th~ City shall have the first right to purchase said CATV System upon the same terms and conditions and for the same consideration that the Grantee received in the offer ~rom the third party. Such first right of purchase shall be exercised by the City within ninety (90) days from the date of written notification from Grantee of the proposed purchase by a said third party. SECTION 19: The Grantee shall have the authority to trim trees upon and overhanging streets, alleys, sidewalks, easements and public ways and places of the City so as to prevent the branches of such trees from coming in contact with the wires and cables of the Grantee. SECTION 20: Upon termination of service to any subscriber, the Grantee shall promptly remove all its facilities and 'equipment from the interior of the residence located on the premises of such subscriber upon his request, without cost to the Subscriber, repairing any damage that may be done. .... SCHEDULE "A" BASIC SERVICE PREWIRED Installation charge-first outlet: Aerial 15.00 UrrlergrO\.m<l 35.00 Installation charge-additional outlets at tine of initial installation lO.OO ea. Installation charge-addi tianal outlets after ini tia1 installation 15.00 ea. l-bnthly charge for basic service incltrling converter 8.00 l-bnthly charge for each additional "'IV" set including converter 3.00 l-bnthly charge for each additional "m" outlet 1.00 OPTIONAL SERVICE Installation charge-first outlet 15.00 l-bnthly charge for Ibte Box Office l-bnthly charge for Seoond Premilltl lO.OO 8.00 ~. NON-PREWlRED 25.00 45.00 10.00 ea. 15.00 ea. 8.00 3.00 1.00 15.00 10.00 8~00 . . ',," '"'. .'" . SCHEDULE liB" BASIC SERVICE FDFW-TV, Dallas-Ft. Worth KXAS-TV, Dallas-Ft. Worth KXTX-TV, Dallas-Ft. Worth WFAA-TV, Dallas-Ft. Worth KTVT-TV, Dallas-Ft. Worth KERA-TV, Dallas-Ft. Worth C-SPAN Public Affairs, Washington D.C. WGN-TV, Chicago, Illinois WTBC, Atlanta, Georgia Newstime Picture Service, Atlanta, Georgia Local Weather-Messages-NOAA Forecast Radar and Local Messages UPI News Service Full FM Band Coverage Local Religious Channel Local Community News/Want Ads Local Access Channel City Channel School Channel Previews of Movies and Sports TV Guide Madison Square Garden/Calliope, N.Y., N.Y. OPTIONAL SERVICE Home Box Office Pay Movie/Marquee, N.Y., N.Y. Second Premium-undetermined LIMITED ACCESS SERVICE Medical Limited Access Legal Limited Access Educational Limited Access RESERVED CHANNELS . Reserved Educational - 4 channels Reserved Future Use - 2 channels .' SECTION 2l: The Grantee shall insure that all subscribers have recourse to a satisfactory hearing of any complaint made of its services., The City shall work closely with the Grantee and subscribers to establish procedures for handling and settling of subscriber complaints. 'Information pertaining to these rules, regulations and procedures shall be provided to all subscribers at least once a year for the term of this franchise. SECTION 22: The Grantee shall pay the City all costs of adopting this ordinance. SECTION 23:: The Grantee shall not sell or tr~~sfer any right or privilege under this franchise to another except with the written approval of the Council at Council's sole and complete discretion, nor shall Grantee lease more than 30\ of its channel space to any one ~Perator or group of operators without such written Permission. ' SECTION 24: Grantee shall have thirty (30) days "after final passage of this ordinance in which to file its written acceptance thereon with the governing body of the City. . SECTION 25: This ordinance shall become in full force and effect after the same has been passed and accepted. SECTION 26: It is further provided that in case a section, clause, sentence or part of this ordinance shall be deemed or adjudged by a Court of competent jurisdiction to be invalid, then such invalidity shall not affect, impair or invalidate the remainder of this ordinance. SECTION 27: All ordinances, or parts ,of ordinances in conflict herewith are specifically repealed. PASSED AND APPROVED in Special Council Session on this the 26.th _ day of February; 1980. ..' CITY OF ~LIE, TEXAS B~?/ ~ Mayor ATTEST: