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HomeMy WebLinkAboutO-421i n Oridinance No. „ AN GRANTINi' .y , Ic TELc?!kONiPTER :.ABLE T V. CJ',IP ,N`j , .. ITS SUCCESSORS AND ASSIGNS, TO uPI: AND MAINTAIN A CO`MUNITY ANTENNA TELEVISION SYSTEM IN T'IM CITY; SETTING FORTIS :ONDITIONS ACCOMPANYI\iG THE GRANT OF FRANCHISE; PROVIDING FOR CITY REGULATIONS AND USE OF THE COM'I.MNITY ANTENNA TELEVISION SYSTEM; AND ?RE -SCRIBING PENALTIES FOR VIOLATION OF THE FRANCHISE PROVISIONS: BE IT ORDAINED BY THE BOARD OF CO`":.E CITY OF FAIRHOPE, ALAMMA, as follows: Sec. I --s. This Orin ,.ce s cnown and may be - - �'; e lePromnTer Cab company, Inc. Community e- elav sion Franchise Sec. T nzt ons.. For the purpc:e _' this Ordinance the fo"Liu' `.I phrases, words, and shall have the T. I anir:; giver. herein. Mien not coy_:.; ::-cnr w I th the context, us,d it the present tens: c.: u the f..�. . words in t e nlc:ral m.:m�er include the <_;; words in the singular ri=ber include the niura ,u :per. 7 word "shall" is alvays ma„datory and n.:r , .._� _;✓. (I)' "City" is the City of FairhoUe. 4 t,2 "Commission" is the Board or the City of Fa faope. ' _:ommunity 'Antenna Television, Sys . , after rererred to as "C.V-V System" or "systo . a a system of coaxial cables or other electrica, c ...ctors and equipment used or to be used �;rimari. to :ac.eive television signals directly or in,:`rectly of-Lcie-air and transmit then^ to subscribers ror a fee. 4 "Oersons ' is any nersot:, firm, partnership, ass :a- --t in cor­)oxat or , company or organization of ary .._ . Pror nTe. Cable T.V o:-., Inc. .s _c ,PromnTer Cable T.%'. Tnc. a: -,e :rovisiOL_�, o�' this Fr;.. a Sec. 3. Grant of Nonexclusive Authority. rA (a) There is hereby granted by the City to the grantee the right and privilege to construct, erect, operate and maintain, in, upon, alon;, across, above, over and under the streets, alleys, public ways and public -_laces now laid. out or dedicated, and all extensions Hereof, and additions thereto, in the City, poles, wires, cables, underground conduits, manholes, and other television conductors and fixtures necessary F for the maintenance and operation in the City of a CATV system for the interception, sale, and distribution of television signals. (b) The right to use and occupy said streets, alleys, public ways and places for the purposes herein set forth shall not be exclusive, and the City reserves the right to grant a similar use of said streets, alleys, public ways and places, to any person at any time during the period of this Franchise Sec. 4. Compliance with Annlicable Laws and Ordinances. The grantee shall, at all times during the life uf this Franchise, be subject to all lawful exercise of the police power by the City and to such reasonable regulation as the City shall hereafter provide. Sec. S. Territorial Area Involved. This-ranchise relates to the present territorial limits of the City and to any area henceforth added thereto during the term of this Franchise. Sec. 6. Liability and Indemnification. (a) The Grantee shall pay and by its acceptance of this Franchise the Grantee specifically agrees that it will pay -all damages and penalties which the City may legally be required to pay as a result of Granting this Franchise. These damages or penalties shall include, but shall not be limited to, damages arising out of copyright infringements and all other damages arising out of the installation, operation, or maintenance of the CATV system authorized hereiin, whether or not any act or omission complained of is authorized, allowed, or prohibited by this Franchise. 6 (b) The Grantee shall pay and by its acceptance of this Franchise specifically agrees that it will pay all expenses incurred by the City in defending itself with regard to all damages and penalties mentioned in sub -section (a) above. These expenses shall include all out-of-pocket expenses, such as attorney fees, and shall also include the reasonable value of any services rendered by the City Attorney or his assistants or any employees of the City. (c) The Grantee shall maintain, at commencement of construction, and throughout the terms of this Franchise, liability insurance, with the City as an additional insured, with regard to all damages mentioned in sub -paragraph (a) above in the minimum of: (1) $100,000.00 for bodily injury to death to any one person, with the limit, however, of $300,000.00 for bodily injury or death resulting from any one accident. (2) $200,000.00 for property damage resulting from any one accident. (3) $300,000.00 for the infringement of copyrights. (4) $100,000.00 for all other types of liability. (d) The Grantee shall maintain, at commencement of construction, and by its acceptance of this Franchise specifically agrees that it will maintain throughout the term of the Franchise a faithful performance bond running to the City, with good and sufficient sureties approved by the City, in the penal sum of $100,000.00 conditioned that the Qrantee shall well and truly observe, fulfil, and perform each term and condition of this Franchise and that in case of any breach of condition of the bond, the amount thereof shall be recoverable from the principal and sureties thereof by the City of all damages VIC proximately resulting from the failure of the grantee to well and faithfully observe and perform any provision of this Franchise. (e) The insurance policy and bond obtained by the grantee in compliance with this section must be approved by the City Commission and such insurance policy and bond, along with written evidence of payment of required premiums, shall be filed and maintained in full force with the City Revenue Officer during the term of this Franchise, and shall contain a provision requiring not less than thirty (30) days notice to the City of cancellation. Sec. 7. Prohibition of Pay TV: The grantee is specifically barred from delivering television signals, directly or indirectly, from any pay television source. Sec. 8. Color TV. The facilities used by the grantee ,shall be capable of distributing color TV signals, and when the signals the grantee distributes are received in color they shalt be distributed in color where technically feasible. Sec. 9. Signal Quality Requirements. The grantee shall (1) Produce a picture, whether in black and white or _ in color, that is undistorted, free from ghost images, and accompanied with proper sound on typical standard production TV sets in good repair, and as good as the state of the art allows; . (2) Transmit signals of adequate strength to produce good pictures with good sound at all outlets without causing cross,,modulation in the cables or interferring with other electrical or electronic systems; (3) Limit failures to a minimum by locating and correcting normal malfunctions promptly, but in no event longer than forty-eight (48) hours after notice, acts of God excepted. (4) If reasonably requested, to demonstrate by instruments and otherwise to subscribers that a signal of adequate strength and quality is being delivered. Sec. 10. Oneration and Ntaintenance of System. (a) The Grantee 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 use of the system. (b) The Grantee shall maintain an office in the City, which shall be open during all usual business house, have a listed telephone, and he so operated that complaints and requests for repairs or adjustments may be received at any time. Sec. 11. Carriage of Signals. The Grantee shall receive and distribute television signals which are disseminated to the general public without charge by broadcasting stations licensed by the Federal Communications Commission, and shall distribute no other signals except that the Grantee may distribute weather information and time, music, news, and stock market reports furnished as an incidental part of the system to all subscribers, wirhout additional charge; may transmit occasional local events of public interest and occasional closed circuit television programs furnished as an incidental hart of community antenna service to all subscribers, without additional charge. The Grantee shall not transmit or distribute live coverage of any local events which are being telecast nationally but are not being otherwise televised into the Mobile .Metropolitan area. The Grantee will at all times carry all local channels and in the event a program is being carried on two or more stations at the same time, will black out the out -of -torn stations carrying the program, and during such times may originate its own programs over such channel. All FCC regulations shall be complied with regarding the carriage of the programming of any existing or future television broadcasting station which covers the City of Fa.irhone in its principal broadcasting area. Sec. 12. Program Alteration. All programs of broad- casting st,a:.ions carried by the Grantee shall be carried in their entirety as received, with announcements and advertisements and without additions. Sec. 13. Service to Schools, Iospitals, and Municipal Buildings. Upon request by the City the Grantee shall provide outside connections and service. to all hospitals, public schools,, parochial or other religious schools, and municipal buildings of the City; provided, however, any and all inside wiring or work shall be done at the expense of such hospital, school or City; and that a service cable is located in reasonable proximity to such building. Sec. 14. Emer-ency Use of Facilities. In the case of any emergency or -disaster, the Grantee shall, upon request of the City -Commission, make available its facilities to the City for emergency use during the emergency or disaster period. Sec. 15. Other Business Activities. (a) The Grantee shall not engage in the business of selling, repairing, or installing television receivers, or accessories for such receivers within the City of Fairhope, during the term of this Franchise. ' (b) This Franchise authorizes only the operation of a CA'R' system as provided for herein, and does not take the place of any other franchise, license, or permit which might be required by law of the Granteel. Sec. 16. Safety Reouirements. (a) The Grantee shall at all times employ ordinary care and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injuries, or nuisances to the public. ' (b) The Grantee shall install and ,ra.i-ntain its wires, cables, fixtures, and other equipment in accordance with the requirements of the Electrical Code of the City of Fairhope, as the same now exists or may be hereafter amended or replaced by a later and subsequent-lectrical Code, and in such manner that they will no interfere with any installations of the City or of a public utility serving the City. (c) All structures and all lines, equipment, and connections in, over, under, and upon the streets, sidewalks, alleys and public ways or places of the City, wherever situated, or located, shall at all times be kept and maintained in a safe, suitable, substantial condition, and in good order and repair. (d) The Grantee shall maintain a force of one or more resident agents or employees at all times and shall have sufficient employees to provide safe, adequate and prompt service for its facilities. Sec. 17.- New Developments. It shall he the policy of the City liberally to amend this Franchise, unon application of the Grantee, when necessary to enable the Grantee to take advantage of any developments in the field of transmission of television signals which will afford it an opportunity more effectively, efficiently, or economically to serve its customers. Provided, however, that this section shall not be construed to require the City to make any amendment or to prohibit it from unilaterally changing its policy stated herein. Sec. 18. Conditions on Street Occupancy. (a) All transmissions and distribution structures, , lines, and equipment erected by the Grantee within the City shall be so located as to cause minimum interference with the proper use of streets, alleys, and other public ways and places, and to cause minimum interference with the rights and reasonable convenience of property owners who join any of the said.streets, alleys or other public ways and places. (b) In case of disturbance of any street, side- walk, alley, public way, or paved area, the Grantee shall, at its own cost and expense and in a manner approved by the City Engineer, replace and restore such street, sidewalk, alley, public way, or paved area in as good a condition as before the work involving such disturbance was done. (c) If at any time during the period of this Franchise the City shall lawfully elect to vacate, relocate, alter or change the grade of any street, sidewalk, alley, or other public way, the Grantee upon reasonable notice by the City, shall remove, relay, and relocate its poles, wires, cables, underground conduits, manholes, and other fixtures at its own expense. (d) Any poles or other fixture placed in any public way by the licensee shall he placed in such manner as not to interfere with the usual travel on such public way. (e) The Grantee shall, on the request of any person holding a building moving hermit issued by the City, temporarily raise or lower its wires to permit the moving of buildinsrs. The expense of such temporary removal or raising or lowering of wires shall he paid by the person requesting the same, and the Grantee shall have the authority to require such payment in advance. The Grantee shall be given not less than forty-eight (48) hours advance notice to arrange for such temporary wire changes. (f) The Grantee shall have the authoritv to trim trees upon and overhanging streets, alleys, sidewalks, 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, except that at the option of the City, such trimming may be done by or under the sunervision and direction of the City at the expense of the Grantee. Sec. 19. Preferential or Discriminatory Practices Prohibited. The Grantee shall not, as to rates, charges, service, service facilities, rules, regulations, or in any other respect make or grant any undue prefer---ce or advantage to any person, nor subject any person to prejudice or disadvantage. Sec. 20. Removal of Facilities (lnon Request. llpon termi-i.:tio-r of service to any subscriber, the Grantee shall promptly re^ove all its facilities and equipment from the premises of such subscriber upon his request. Sec. 21. Transfer of Franchise. The Grantee shall not transfer this Franchise to another person without prior approval of the City by ordinance. Sec. 22. Transactions affecting Ownership of Facilities. (a) The Grantee shall not make, execute, or enter into any deed, lease, sale, gift or similar agreement co-icerni.ng all of the facilities and property, real or F.,-sonal, of the CATV business without prior anproval of the kAl,y Commission. Provided, however, that this section shall not apply to the disnosition of worn out or obsolete facilities or personal property, in the normal course of carrying on the CATV business. (b) Except as provided for in sub -section (a) above, the Grantee shall at all times be the full and complete owner of all facilities and property, real and personal, of the CART business. Sec. 23. Change of Control of Grantee. Prior approval of the City Commission shall be required where ownershin or control of more than 66 2/3 per cent of the right of control of GraY.tee is acquired by a person or group of persons acting in eon,:ert. By its acceptance of this Franchise the Grantee $peci€ically grants and agrees that any such acquisition occurring without prior approval of the City Commission shall constitute a violation of this Franchise by the Grantee. Sec. 24. Filings and Communications with Regulatory Agencies. Copies of all petitions, applications and communications submitted by the Grantee to the Federal Communications Commission, Securities and Excha.nae Commission, or any other federal or state regulatory commission or agency having jurisdiction in respect to any matters affecting CATV operations authorized pursuant to this'Franchise, shall also be Submitted simultaneously to the City Commission. Sec. 25. City Ri?hts in Franchise. (a) The right is hereby reserved to the City or the City Commission to adopt, in addition to the provisions Contained herein and in existing applicable ordinances, such additional reIaulations as it shall find necessary in the exercise of the police power; provided, that such regulations, by ordinance or otherwise, shall be reasonable and not in conflict with the rights herein granted. (b) The City shall have the right to inspect the books, records, mans, plans, income tax returns, and other '_ike materials of,the Grantee at any time during; normal business hours. (c) The City shallihave the right, during the life of this Franchise, to install and maintain free of charge upon the Doles of the Grantee any wire and pole fixtures necessary for a police alarm system, on the condition that such wire and pole fixtures do not interfere with the CATV operations of the Grantee. (d) The City shall have the right to supervise all construction or installation work performed subject.to the provisions of this Franchise and make such inspections as it shall find necessary to insure compliance with the terms of this Franchise and other pertinent provisions of law. (e) At the expiration of the term for which this Franchise is granted, or upon its termination and cancellation, as provided for herein, the City shall have t`-,e right to require the Grantee to remove at its own expense all portions of the CATV system from all public ways wit'ain ..:.c City. Sec. 26. Maps, Plats and Reports. (a) The Grantee shall file with the City Enaineer true and accurate maps or plats of all existing and proposed installations. (b) The Grantee shall file annually with the City Clerk not later than sixty (60) days after the end of the Grantee's fiscal year, a copy of its report to its sl_cckholders (if it prepares such a report), an income state- r.-ent applicable to its operations during the preceding 12 months period, a balance sheet and a statement of its properties devoted to CATV operations. These reports shall be prepared or apnroved by a certified nublic ac:.uuntant and there shall be submitted along with them such other reasonable information as the City Commission shall request wit," respect to the Grantee's properties and expenses related to its CATV operations with the City. (c) The Grantee shall keep on file with the City Clerk a current list of its shareholders and bondholders. i Sec. 27. Pavment to the City. The Grantee shall pay to the City annually an amount equal to five (5) per cent of the annual gross operating revenues taken in and received by it on + all sales of television signals within the City and all receints from installation charges within the City during the year, for . the use of the streets, and other facilities of the City in the operation of the system and for the municipal supervision thereof. This payment shall be not less than .5250.00 per year from the date of acceptance of this Franchise and will include licenses. This payment shall be made within 30 days following the close of the fiscal year of the Grantee. Tine fiscal year of the Grantee under this Franchise shall be the same as the fiscal year of the Grantee for payment of income taxes to the United States of America or the State of Alabama. Sec. 28 Forfeiture of. Franchise. (a) In addition to all other rights and powers pertaining to the City by virtue of this Franchise or other- wise, the City reserves the right to terminate and cancel this Franchise and all rights and nrivileges of the Grantee hereunder in the event that the Grantee: (1) Violates and provisions of this Franchise or any rule, order, or determination of the City or City Commission made pursuant to this Franchise, except where such violation, other than of Section 23 or sub -section (2) below, is without fault or through excusable neglect; (2) Becomes insolvent, unable or unwilling , to pay its legal debts, or is adjudged a bankrupt. (3) Attempts to evade any of the provisions of this Franchise or practices any fraud or deceit upon the City; or (4) Fails to make the m-.nimum r-s-,ent of $250.00 per year to the City, per section 27. t i (b) Such termination and cancellation shall be by ordinance duly adopted after thirty (30) days notice -co the Grantee and shall in no way affect any of the City's rights under this Franchise or any provision of law. In the event that such termination and cancellation depends upon a finding of fact, such finding of fact as made by the City Commission' or its representative shall be conclusive in the absence of fraud or a gross abuse of discretion. Provided, however, that before this Franchise may be terminated and cancelled under this section, the Grantee must be provided with an opportunity to be heard before the City Commission. Sec. 29. City's Right of Intervention. The Grantee agrees not to oppose intervention by the City in any suit or proceeding to which the Grantee is a party. Sec. 30. Further Agreement and Waiver by Grantee. The Grantee agrees to abide by all provisions of this Franchise, and further agrees that it will Pot at any future time set up as against the City or the City Commission the claim that the provisions of this Franchise are unreasonable, arbitrary, or void. Sec. 31. Duration and Acceptance of Franchise. (a) This Franchise, and the rights, privileges ar.d authority hereby granted shall take effect and be in force from and after final passage hereof, as provided by law, and shall continue in force and effect for a term of twenty (20) years, provided that within sixty (60) days after the date of the passage of this ordinance the Grantee shall file with the City Clerk its unconditional acceptance of this Franchise and promise to comply with and abide by all its provisions, terms, and conditions. Such acceptance and promise shall be in writing duly executed and sworn to, by or on behalf of the Grantee before a Votary Public or other officer authorized'by law to administer oaths. (b) Should the Grantee fail to comply with sub -section (a) above, it shall acquire no rights, privileges, or authority under this Franchise whatsoever. (c) The Grantee shall have an option to renew this Franchise for one additional term of twenty (20) years by giving written notice to the City at least six (6) months before its expiration. Sec. 32. Erection, Removal, And Common User of Poles. (a) No poles or other wire -holding structures shall be erected by the Grantee without prior approval of the City Commission with regard to location height, type and any other pertinent aspect. However, no location of any pole or wire - holding structure of the Grantee shall be a vested interest and such poles or structures shall be removed or modified by the Grantee at its own expense whenever the City Commission determines that the public convenience would be enhanced thereby. (b) !Vhere poles or other wire -holding structures already existing for use in serving the City are available for use by the Grantee, but it does not make arrangements for such use, the City Commission may require the Grantee to use such poles and structures if it determines that the public convenience would be enhanced thereby and the terms of the use available to the Grantee are just and rcasona'r,lc. ' (c) !there the City or a public utility serving the City desires to make use of the holes or other wire-holdin; structures of the Grantee but agreement therefor with the Grantee to nermit such use for such consideration and upon such terms as the Commission shall determine to he just and reasonable, if the Commission determines that the use would --nuance the public convenience and would not unduly interfere with the Grantee's operations. b I I C. Ji l I I I I l i ' i 0 I I� II II Sec, 33. Number of Channels. The Grantee's cable distribution system shall he capable of -carrying at least twelve (12) television channels. The Grantee shall carry a minimum of four (4) conu^ercial television channels which shall include all of the major television networks. Further, the Grantee shall make available upon request of the City Commission one of said channels for educational TV and one of said channels for any other non-commercial service for the benefit of the inhabitants of the City. Sec, 34. Rates. (a) The rates and charges for television signals distributed hereunder shall be fair and reasonable and no higher than necessary to meet all costs of service, including the establishment and maintenance of necessary reserves, funds for replacement, and expansion, (assuring efficient and econimical management), including a fair return on the original Cost, less depreciation, of the properties devoted to such service (without regard to any subsequent sale or transfer price or cost of such properties,) (b) 1'he City Commission shall have the power, authority, and right to cause the grantee's rates and charges to conform to the provisions of sub -section (a) hereof, and for this purpose, it may deny increases or order reductions in such rates and charges when it determines that in the absence of such action on its part, the Grantee's rates and charges or proposed increased rates and charges will not conform to the said sub-section.(a). (c) By its acceptance of this Franchise the Grantee specifically frants and agrees that its rates and Charges tp its subscribers forotelevision signals shall be' F fair and reasonable and no higher than necessary to meet all its necessary costs of service, including the establishment, and maintenance of necessary reserves, funds for replacement and expansion, (assuming efficient and economical management), including a fair return on the original cost, less depreciation, of its properties devoted to such service (without regard to any subsequent sale or transfer price or cost of such properties). (d) By its acceptance of this Franchise the Grantee further specifically grants and agrees that the City Commission shall have the power, authority, and right to cause the Grantee's rates and charges to conform to the provisions of sub -section (c) hereof, and for this purpose the Commission may deny increases or order reductions in such rates and charges when it determines that in the absence of such action on its nart, the Grantee's rates and charges or proposed increased rates and charges will not conform to the said sub -section (c). (e) However, no action shall be taken by the City Commission with resnect to the Grantee's rates under this section until the Grantee has been given reasonable notice therof and an opportunity to be heard by <<•.e Commission with regard thereto. (f) The following rates and charges are hereby authorized for service tinder this Franchise and shall not be chan?ed by the Grantee without prior approval by the City Commission, and shall remain in effect until chanocc. or mcjified in accordance with the general standards and principals set out in this section. (1) Initial tap -in and connection charges: $12.50. (2) ":onthly-rates: $5.00 per month, for one set or outlet and $1.00 for each additional set or outlet in the same building. (g) The Grantee shall receive no deposit, advance payment, or penalty from any subscriber or potential subscriber without approval of the Commission. (h) The Grantee shall recieve no consideration whatsoever for or in conncction with.its service to its subscribers other than in accordance with this section. (i) If in the future, the State of Alabama regulates the rates of the Grantee for the service provided for in this Franchise, this section shall be of no effect during such state regulation to the extent of any conflict therewith. Sec. 35. Flow -Through of Pefunds. (a) If during the term of this Franchise the Grantee receives refunds of any.payments made for television signals, it shall without delay notify the City Commission, suggest a plan for flow -through of the refunds to its subscribers, and retain such refunds pending order of the Commission. After considering the plan submitted by the Grantee, the Commission shall order the flow -through of the refunds to the Grantee's subscribers in a fair and equitable manner. Sec. 36. Subscriber Refunds on Termination of Service. If any subscriber of the Grantee of less than two (2) years terminates service because of the Grantee's failure to render service to such subscriber of a tyne and quality provided for herein, or if service to a subscriber of less than two (2) ,years is terminated without good cause or because the Grantee ceases to operate the CATV business authorized herein for any reason,' except expiration of this Franchise, the Grantee shall refund to such subscriber an amount equal to the initial tap -in and connection charges paid by him divided by 24 and multiplied by a number equal to 24 minus the number of months the subscriber ,as been on the system. 0 Sec. 37. Publication costs. The Grantee shall pay the cost of publication of this Franchise Ordinance as such publication is required by law. Sec. 38. Senarabili_ty. If any section, subscetion, sentence, clause, phrase, or portion of this ordinance 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 protions hereof. Sec. 39. Ordinance Repealed. All ordinances or -parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Adopted: a 0