O-291-3-80ORDINANCE NO. 291
AN ORDINANCE AMENDING ORDINANCE NO.
247; 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 ACCOMPANY-
ING THE GRANTING OF THE FRANCHISE; AND
PROVIDING FOR AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF Allen, TEXAS:
SECTION 1: This ordinance shall be known and may be
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 Allen, Texas.
(b) Council is the City Council of Allen, 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 provisions of this ordinance.
SECTION 3: The Grantee must have begun construction on
the community antenna television system on or before August 3,
1980, and must have customer service available within six (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
performance 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.
SECTION 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. prior to the commencement
of construction within the City, Grantee shall notify the
City, either orally or in writing, of the location and type
of construction to be commenced.
The Grantee shall use only new cables and equipment
with such shielding and protective devices as may 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 locations 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
or 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 (1) year from the date such
surface of said street, alley or public place is broken or
excavated for such construction or maintenance work, after
which 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 $100,000.00 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 assigns, on the filing of said suit, so that proper
defense may be made to said action or suit.
(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 11 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 (30) 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
amounts due to the City shall be paid on or before the 15th
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 18 (b), the percentage of gross receipts
payable hereunder may be renegotiated between City and
Grantee.
SECTION 10: (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. Grantee shall
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 Iother
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.
SECTION 11: 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. Grantee agrees to cooperate with the City in
providing additional public and educational access channels
as the need for the same arises. 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.
SECTION 12: In addition to the channels above provided,
the Grantee shall to the extent permitted by law provided
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) Said office is to be open during_normal business
hours and have a telephone with public listing for
receipt of complaints and so operated that complaints
and requests for repairs or adjustments maybe received
on a 24-hour basis. Grantee, to the best of its ability,
will respond to such requests for repairs and complaints
within 24 -hours from the receipt of the same.
SECTION 13:
Grantee shall file a complete System map with
the Director of Public Works of the City of Allen, 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.
SECTION 15: The Grantee shall, at all times during the
life of -this franchise be subject to all lawful exercise of
the policy power by the City and obey all lawful exercise of
the policyipower.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 16: The Grantee is expressly prohibited from
entering into any service or sales contract.with any residential
subscriber for the repair or.sale of television receivers.
Grantee shall comply with all State and Federal laws and
regulations regarding privacy of information with respect to
subscribers.
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 18: At the expiration of the term for which
this franchise is granted, or upon its termination and
cancellation, as provided herein, the City shall have the
right 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 15 -year term or additional
terms hereof, grant the Grantee an option to continue
an additional ten (10) 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, the 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
from 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.
SECTION 21: 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 pertaininl,to these
rules, regulations, and procedures shall be provided to all
subscribers at the time of initial subscription and 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 transfer 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.30o of
its channel space to any one operator or group of operators
without such written permission. Any assignee to this franchise
expressly agrees that any negotiated sale value which,the City
deems unreasonable will not be considered in the rate base for
any subsequent request for rate increases.
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 adopted in accordance with the
City's Charter.
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 Regular Council Session on this
the 6th day of March, 1980.
CITY O ALLEN, EXAS
BY:
Mayor
BASIC SERVICE
Installation charge -first outlet:
Aerial
Underground
Installation charge -additional
outlets at time of initial installation
Installation charge -additional
outlets after initial installation
Monthly charge for basic service
including converter
Monthly charge for each additional
"TV" set including converter
Monthly charge for each additional
"Fol" outlet
OPTIONAL SERVICE
Installation charge -first outlet
Monthly charge for Home Box Office
Monthly charge for Second Premium
PREWIRED
N014 -PREWIRED
15.00
25.00
35.00
45.00
10.00 ea.
10.00 ea.
15.00 ea.
15.00 ea.
8.00
8.00
3.00
3.00
1.00
1.00
15.00
15.00
10.00
10.00
8.00
8.00
r',✓
SCHEDULE "B"
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
i
AFFIDAVIT AND PROOF OF PUBLICATION
THE STATE OF TEXAS
COUNTY OF COLLIN
BEFORE ME, the undersigned authority, on this day personally appeared BUDDY W. CAMPER, who having been
by me duly sworn, on oath deposes and says:
That he is publisher of THE ALLEN AMERICAN, a newspaper published in Collin County, Texas, not less fre-
quently than once a week, having a general circulation in said county, and having been published regularly and con-
tinuously for more than twelve months prior to publishing
of which the attached is a true and written copy, and which was published in THE ALLEN AMERICAN on,
and which was issued on ZZ , by
of Collin County, Texas. A printed copy o said publication is ached hereto. ,
xfir„0,;
SUBSCRIBED AND SWORN to before me this day of ,c�;/�""� , A.D. 19-P?- .
Notary P�ib�lic in and for Collin County, Texas
Publisher's Fee $, ice•/� �/
/,fid �,�,. 06�
M r ,
10
ORDINANCE NO. 291 f
An Or
amending
Ordinanc N 47; pro -j
viding for the grant of a fran-
chise • to Media Systems,
Inc., Its" successors and
assigns, to construct,
operate and maintain a
Community Antenna Televl.
sion System" in the City and
petting forth conditions ac-
companying the granting of
the Franchise; and, pro"
viding for an effective date.
PASSED AND APPROV•
ED in Regular Council Ses-
sion on this the 6th day of
March; 1980
Attest: -s-M. Pierson, Mayor
-s-Juanelle Cooksey,
City Secretary 4 i 'ri•.;r;
(To be published In the Allen
Amerlean, 'Monday,', March'
10 'and Thursday; March 13,'
1980). L '+
ORDINANCE N0.291—
An Ordiending
Ordinance No. 247; pro.
viding for the grant of a fran .
chise , to Media Systems,
Inc., Its' successors and
assigns; to construct,
,operate and maintain a
Community Antenna Televi.
sion System In the City and
setting forth conditions ac-
companying the granting of
the Franchise; and pro.
viding for an effective date.
PASSED AND APPROV.
ED in Regular Council Ses.
sion on this the 6th day of.
March, 1980. i
Attest: -s-M., Pierson, Mayor '
A -s-Juanelle Cooksey,
City Secretary
(To be published In the Allen
American, Monday, March
10 and Thursday, March 13,
1980). r