HomeMy Public PortalAboutORD09760 �f
BILL NO.
INTRODUCED BY COUNCILMAN RaA.L-ml pang=
ORDINANCE NO. C? �Q Q
AN ORDINANCE TO PROVIDE FOR THE ESTABLISHMENT AND GRANTING OF
FRANCHISES OR PRIVILEGES FOR THE CONSTRUCTION, MAINTENANCE
AND OPERATION OF CABLE COMMUNICATION, OR CABLE TELEVISION
SYSTEMS AND FURTHER PROVIDING FOR THE CONTINUING REGULATION
AND ADMINISTRATION OF THESE FRANCHISES AND THE ACTIVITIES
RELATIVE TO THEM.
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(d) Disposition of Facilities.... . .. . . .. . . ..18
(e) Restoration of _ro_peerU. .. .. . . .. . ..... . .18
® (f) estorat on — City, Reimbursements
Q oS s.. . . . .. .. ... .. ... ... . . . . . . ... . ..18
(g) Extended Operation.. .... ..... . .... .. ....19
(h) ty s Right Not Affected. ... .... . . . .. . .19
4.11 Receivership and Foreclosure.. .. .. .. . . .. . .. ..19
(a) Termination Upon Bankruptcy. . ... . ... .. ..19
(b) erm nation pon oreclosure..... . .. . ...20
4.12 Franchise Required.. .. ....... .... . ..... .. ....20
SECTION 5: REGULATION OF FRANCHISE. ... ..... ......... ..20
5.1 RReeguul�ator Auttiorit . ........ ................20
5.2 el gul atory Responsibility........ ............21
(a) Administration and Enforcement... . ......21
(b) oor nat on. .. .. .. ..... .... .... ........21
(c) u ort to ublic A enc Users..........21
(d) Procedures and standards for
Institutional Operat ons..... .. .. ...... .21
(e) Planning. ... ... .. .. . ..... .... ....... ....21
(f) nterconne cti on.. ... .... ..... .... .......21
(g) Q c . .. .. . .. .. ....... ................21
(h) ommunity Channels..... . .... . .... .... ...21
5.3 Rate Regulation.. ... .... ......... ............22
(a) Initial Rates........... ................22
(b) Rate odo cation Authority...... :......22
(c) Rate Regulation.......... ...............22
(d) Procedure...... .. ...................... ..23
(e) Schedule If Delegated............ ...... .24
(f) ates fect ve on . ailure of
Written Dec -s on To Be Rendered.. ..... ..25
(g) Financial Reports equ re ....... .......25
(h) Sched u e of ates............ ...........26
(i) DisconnectTons. ......... ..... . ....2
(J) o Cons
eratTon id le........26 u
(k) lefunas to Subscribers an
Programmers. .,.. ... * .26
(1 ) Costs of ate Regulation to Grantee
... ..27
{ 'Annua:l--:.Revi'ew,;,: .......... .... .......27
(n) Automat c Pass-Through of Copyright
and LERE osts. ... ..... .... . .. .. .......27
(o) Pass-thro_u_9fFW Franchise Fees, When....28
5.4 Local Access Channel Management.. .... .,..... ..28
(a) Intent... ...... .. . ..... . .... . .. ....... ..28 t
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TABLE OF CONTENTS i
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SECTION1: INTENT.. .. . .. .. .. . .. .. ... ..... ... ....... .. .1 !
SECTION2: SHORT TITLE.... ... . ... . .. .. ... .. . .. . .. . . . . .1
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SECTION 3: DEFINITIONS... . ... . . ... .. . .... ... . ..... ... .1
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SECTION4: GRANT OF FRANCHISE.. .. .... ..... .. ... .... . ..7
4.1 Grant... .. . . .... . ... .... ... . .... . .. .. ... . ....7
4.2 Tranchise Territory .... ........ .. . . .... ... ..8
4.3 Use of Publ is and Ways.. ........ .... .8
4.4 Duration... . . .. .. ... .. .. ... ..... ... ..........8
4.5 rant se Non-exclusive. ................ .....8
4.6 Transfer of wners p or Control... ..... ..o -.8
(a) Transfer of Franchise.. ..... .. ...... ....8
(b) wners ip or Control ....... ... ..... .....9
(c) 'Mortgage of Assets, Allowed... ... ..9
. (d) Preference For Local NOt-For-Protit
Corporation.. ..
(e) Consent Not waiver.
(f) Non-Approval of ransfer When... ..
... ..12
(g) Successor Must Be gnatory. .. ..... ... . .12
4.7 Franchise Renewal .. . ... . ............ .. .. ... ..12
(a) Renewal Notice. .... .... ............ ... ..12
(b) SatisfactoryT erformance Required..... ..12
(c) T me Frame.....o... .... ........o...... ..12 '
(d) Amendments Upon Determination of
� .... .... ............... ..e— ne �.... 12
(e) Renewal Periods.... .... ........ ....... ..13
4.8 Police Powers... .... .... ................... ..13
4.9 Franchise •ee... ....... . .... .......... .......13
(a) Annual Franchise Pa ment.. ......... .... .13
(b) Accep tance 6— t . ....—....... .........14
(c) Failure to Ma e a uired Pa nt... .....14
(d) on ments. .. .... ...... .. .........14
(e) Conflict oT aws... .. .. ............... ..15
4.10 Forfeiture, Revocation or Abridgement. . .... ..15
(a) Grounds for Revocation or Abridgement. ..16
(b) Procedure Prior to Revocation. ...... ....16
(c) Abridgement of rant se erm.... . ......17
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i (c) Access oAu�es... . .... ... ..... ... ........ .29
oil un n or he Local Access Channel
f
ana ement Entity. ..... . . ... .. .. . .. .. .. .30
(e) Local Access Channel Management
Entity a or s to Grantor.. . ... . ... .. .. .30
(f) Grantor 1pon Delegation..... .. .30
5.5 Other Business Activities of Grantee. . . . .. ...30
SECTION 6: GENERAL FINANCIAL AND INSURANCE
PROVISIONS... . ... . ... .. ... . . .. .... . ... .... .31
6.1 Performance Bond.. .. . . ... ... .. ... .. .. ... .....31
(a) When Filed Amount.. ... ..... ... .........31
(b) orm rove 'wit Counselor.........31
(c) No Limitation of a y. .... .... .....31
6.2 Compliance Bond..... . .... ... ..... .. ..........31
(a) When Filed Amount.. .......... ..... .....31
(b) Form Aeproved BUiU Counselor. ... .....32
(c) NO Limitation of a ty. .............32
6.3 Security Fund... .... ..... ..... ... .. ... .. .....32
(a) When Filed Amount..... .... . ....... .....32
(b) Restoration or und......... ............32
(c) Fund se on a ure of Grantee
a ment Due. ee*** ** o *9** oeee933
(d) Cancellatib7n of Franchise... .... . .. .....33
(e) Reservation of g ts.. .. ... .. . .. ........33
6.4 Indemnification. .... . .. ..... ..... .. .. ... .....33
6.5 Insurances. . ........ . .. ..... .. ... ....... .... .34
(a) Kinds, Amounts. ............. ..... .. ... ..34
(1 ) Workers' Compensation
Insurance:............. ....... .....34
(2) rant s Lia_ bilim. ... ... .. .......35
(3) om re ens ve General
a . ............. .. .. ... .....35
(4) Comprehensive Automobile
a . . ............ .. . .. .. .....35
(b) Co Ries Furnished.. ..... ..... .. ... .. . .. ..35
(c) Endorsemenf ... . .. ..... .. ... .. . .. 35
(d) o m a� on of Liability. . .. . ... ..
.• .35
6.6 Franchise Processing Costs.. ..... . . ... .. .....36
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6.7 Adjustment of Established Amounts. ...• .•••.. •36
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SECTION 7: DESIGN AND CONSTRUCTION PROVISIONS. .. .. ....36
7.1 System Design... .. . .. .. .. . .. . .. . . . .. . . .. . ... .36 j
7.2 Geographical coverage. . .. . . . . . ... ... . .... ....36
7.3 Cab ast n Fac it es. ... .. ... . . . . . . ... . . ..36 ►
7.4 aE rly xtens on. . . . . . .. . . .. .. . .. . ..... .. . . ... .36
7.5 System onstruction .Schedule. .... ..... ... ....37
(a) Requirements... ... . . . ... .... ..... ... ....37
(b) Service Not Provided, Where. .. ... ... ... .37
(c) Provision of ans.... .. ... . .... ........37
(d) evocat on. ... .... . ... .. ........ ... .....37
7.6 Penalties for _Delay in Construction....:. ....37
(a) Reduction of Franchise Period...... . ....38
(b) Forfeiture of Bonds. ... ..... ... .... .....38
(c) Termination..** ** .*..... .... .... ........38
7.7 Provision of Service.. .... .. ..... .... . ... ... .38
7.8 n er roun n, o a le.. .. .. .... ....... .....38
7.9 ew eve o mentunnder roundin ... ....... .... .38
7.10 treet Occupancy....... ..... . ... . ... .... .....39'
(a) Utilization of Existing Poles....... ....39
(b) Notifi cat on of onstruct on.... ........39
(c) Minimum Interference... ..... ........ ... .39
(d) Restoration of treets. ..... ............40
(e) Removal of ac t es....... ............40
(f) Tree Trimm n .. ........ . .... ............40
(9 Improvements Ci,tX. ....... ............40
(h) Paymen t on Grantee's Failure... .......41
(i) Paving Cuts..... ........ .... ... .........41
(3)
Installation In Conduit............ .....41
(kl Reservations of treet Ri hts...........41
(1 ) Street Vacation or Abandonment.. . .......42
(m) Movement of ac t es. ..... ............42
7.11 Construction and Technical Standards.........43
(a) Construction Standards. ..... ............43
(1 ) Com liance with Safet Codes.......43
. (2) Compliance with —
Co es. .... . ............ ............43
(3) Wntennas and Towers.... ... .........43
(4) ompliance witE wit Aviation
e u remen s.. .... ..... .... ........43
(5) Construction Standards and .
Requirements.. .. .... .... .... ... . ... .43
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(6) Safe, Nuisance Requirements. .. .. .44 I
®, (b) Technical Standards. ... ... .. . .. . .. ... . . .44
(c) Test ana compliance Procedure.. . .. ..... .44
(d) special Tests. . . . .. . .. . .. .. . . .. ... ... .. .45 i
7.12 Areawide Interconnection. ... .. . . . ... . .. .. .. . .45
(a) Interconnection Required.. .. . .. ... ... .. .45
(b) n erconnec on Procedure... .... .. ... .. .45
(c) e e .. ... ... . .. .. . ... .... . . .. . . . ... .. .45
(d) o00o eration Re uired... .... . ...... ... .. .46
(e) initial- Technical Ra uirements to
Assure ruture interconnaction
apa . . ... . ... ............ ... ... .. .46
SECTION 8: SERVICE PROVISIONS. .. .. ........ ... ... ......46
8.1 Services to be Provided.. ... ... .. ... ... ..... .46
8.2 Basic Subscriber Te7evTsion Signal (BSTS). .. .47
8.3 Basic Subscriber Radio Service... . ..... ... . . .47
8.4 Institutional Service .... 9.. .. 947
8.5 Additional u scr r ervices... ...... ... .. .47
8.6 ocal r nat on overnment Access/
Education/Access/Community Ac cess...... ... ...47
8.7, New Developments. .. . . .. ..... .. ... . .......... .48
(a) Amendment of Franchise., .... ...... ... . ..48
(b) r er ng of mprovement..... . .. ... ......48
8.8 Protection of Subscriber's Privacy... .. ..... .48
(a) Use of Data from Subscriber....... .... . .48
(b) u scr er sts....... . .... .. .. 48
r(c) Subscriber ansmissions..... . ...... . .48 '
(d) Audit Unimpeded.... . ... ..... ...... ... ...49
8.9 Pro ram Alteration.. .. ...... ..... ............49
8.10 scen y ornograp�. ... .............. ..... .49
SECTION 9: OPERATION AND MAINTENANCE. ... .. .... ..... . . .49
901 Open Books and Records... ... .... ... .... ... .. .49
9.2 Reports Required... . ..... ... . ............... .49
(a) FCC Form 325... ..... ... ... .. .... .. ..... .49
(b) Faci'lit of s�eaort... ... ...... ... .. ... .. .50
(c) Subs cr iber Data. ....... ... ...... .. ... .. .So
(d) e u a ory Agencies and Utility
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(e) Performance Bond. ... . ... . . .. . . ... . ... ...50
(f) compliance Bond. . . .. . . .. . . .. . . ... . ... ...50
(g) insurance Policies.. . ... . . .. . .... . ... . ..51
(h) wner eor�tt. .. . . ... . ... . . ... . .... ...51
51 i) conduct of Business Rules... . .... . .
W Technical Measurements.. . 0906606946.. ...51
(k) Financial Report. ... . . .. . ... . .... . .. . ...51
(1 ) ct vit es Report... . ... . ... . .... . ... ...51
(m) complaints. . . ... . ... . ... . ... . .... . ... ...51
(n) future Plans. .. . . ... . ... . ... . . ... . ... ...51
9.3 Information Required. .. .. . ... . ... . .... . ... ...52
(a) Maintenance of Information.. . .... . ... ...52
(b) n . . ... . . .. . . ... . ... . ... . .... . ... ...52
(c) Ot er Records.. . .... . ... . ... . .... . .. . ...52
(d) Inspec—F—on-16T Property and Records... ...52
9.4 Maintenance and Complaints... . ... . .... . ... ...53
(a) Business Offices.... . ... . ... . .... . ... ...53
(b) Interruptions.. . .... . ... . ... . .... ........53
(c) Revir o� rce... . .... . .... ... . .... .... ...53
(d) information to Subscribers.. . ..
.. .... ...53
9.5 Rights of Individuals.... . .... ... . .... .... ...53
(a) E ual Rights... . .... ..... ... . .... .... ...53
(b) ua m to ment... . . ... . ... . .... . ... ...54
(c) lght of r vac in Transmission. .... ...54
(d) Right of r vac in Subscrip on..... ..954
(e) Fairness of Accessibility... . .... .... ...55
9.6 Continuity of Service Mandatory.. ..... . ... ...55
(a) Right to Continuity. .... .... 0 .0 0. 0.0 0 0.0 5 5
(b) Upon FaiTure My May Operate.... .... ...55
9.7 Grantee Rules and Regulations..... ........ ...56
SECTION 10: RIGHTS RESERVED TO THE GRANTOR. .... .... ...56
10.1 Ri ht to Purchase the S stem;
n nArbitration._ . ... . .... . ... . .... .... ...56
10.2 Right n pect�on of Records... . ... : .... ...57
(a) Costs. . .... . ... ..... .... . ... . .... ......57
(b) =old actions. ... . .... . ... . ... . ... . .... ...57
(c) Other Rev enues. . .... .... . ... . ... . .......57
10.3 Right of Inspection of Construction.. .*.... ...57
10..4 Right of n erven on... . . .. . . .. . . .... ... . ...58
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10.5. Right to Require Removal of Property. . .. . ... .58
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®I SECTION 11 : RIGHTS RESERVED TO THE GRANTEE. . .. . .. . ... .58
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11 .1 Right of Grantee. . . . . . . . . . .. . . . . .. . .. . .. . ... .58
SECTION 12: MISCELLANEOUS PROVISIONS. . ... .. . .. . .. . ... .58
12.1 Compliance with City, State and
Federal aws. .. .. .. . .. . . .... ...... . .. . ... ... .58 '
12.2 Notices.. . . . .... .. . . ... . .... ... .... .. . ... ... .59
12.3 Fu61f c Notice.. . .. . . . .. . :... ... ... . .. . ... ... .59
12.4 Captions.. . . . .. . . . . . ... ........ ... . ... ... ... .59
12.5 Vo Recourse Against the Grantor... . .. . .. . ... .59
12.6 Non-enforcement Py the Grantor*... . .. . ... ... .59
12.7 LIqUIdated Damages ar ea e
Apa nst Grantee...
12.8 Theft of Services and Tampering. .. . ... ... ... .59
(a) Violation. .... . ... ........ ... . ... ... ....59
(b) Punishment. .. . . ... . .... ... .... ... ... ... .60
12.9 Subsequent Action By State or
Federal gene es. .. . ........ ... . .. . ... ... ... .60.
SECTION 13: GUARANTEE OF PARENT(S)...... . ... ... ... ... .60
13.1 O�bli�ation.. .... .. . . ... . ....... .... ... ... ....60
13.2 Terms of Guarantee.. .. .. .... .... .. . ... ... ....61
13.3 ene t.... . . ... ... . ..: ............ ... ... . ...61
13.4 Ot er Ownership. . ... .... .... .... .. . ... ... . ...61
SECTION14: ACCEPTANCE..... .. ...... .. ... .... ... ... . ...61
SECTION15: SEVERABILITY.. ... ........... . .. . ... ... . ...61
SECTION16: EFFECTIVE DATE. . . ... .... ..... ... ... ... . ...61
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INTRODUCED BY:
Ordinance No.
Bill No.
AN ORDINANCE TO PROVIDE FOR THE ESTABLISHMENT AND GRANTING OF
FRANCHISES OR PRIVILEGES FOR THE CONSTRUCTION, MAINTENANCE
AND OPERATION OF CABLE COMMUNICATION, OR CABLE TELEVISION
SYSTEMS AND FURTHER PROVIDING FOR THE CONTINUING REGULATION
AND ADMINISTRATION OF THESE FRANCHISES AND THE ACTIVITIES
RELATIVE TO THEM
BE IT THEREFORE ORDAINED BY THE CITY COUNCIL OF THE CITY
OF JEFFERSON, AS FOLLOWS:
SECTION 1: INTENT
The City of Jefferson City finds that the development of
cable television and communications systems has the potential
of having great benefit and impact upon its citizens.
Because of the complex and rapidly changing technology asso-
ciated with cable television, the City further finds that the
• public convenience, safety and general welfare can best be
served by establishing regulatory powers which should be
vested in the City or such persons as the City shall
designate. It is the intent of this ordinance and subsequent
amendments to provide for and specify the means to attain the
best possible public interest and public purpose in these
matters and any franchise issued pursuant to this ordinance
shall be deemed to include this finding as an integral part
thereof.
SECTION 2: SHORT TITLE
This ordinance shall be known and be cited as the
"Jefferson City - Cable Television Franchise Ordinance.
SECTION 3: DEFINITIONS
For the purpose 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
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.
3.1 "Additional Subscriber Service" means any service .
not included in "Basic Subscriber Television Service," or
"Basic Subscriber Radio Service," or "Institutional Service,"
including, but not limited to, pay-cable.
3.2 "Agency Subscriber" means a subscriber who receives
service in a government or public agency, school , or non-
profit corporation.
3.3 "Basic Subscriber Radio Service" means the provi-
sion to all subscribers of such audio services and the
retransmission of broadcast AM and FM radio signals, the
retransmission of shortwave, weather, news, time and other
similar audio broadcast channels, and the transmission of
cablecast AM or FM signals, as permitted by the FCC.
3.4 "Basic Subscriber Television Service" means the
total of all the following:
(a) The retransmission to all subscri-
bers of all broadcast television
channel signals authorized by the
FCC and provided for herein;
(b) The provision to all subscribers of
nonbroadcast open channel signals,
originating from sources outside the
Cable Communications System;
(c) The cablecasting to all subscribers
of the Local Origination Channel ,
and the Public Educational and
Government Access Channel signals;
(d) The transmission to all subscribers
of all other. cablecast open-channel
signals.
Basic Subscriber Television Service may be 'offered
to subscribers in one or more tiers or combinations of
programs..
3.5 "Broadcast Signal" means a television or radio
signal that is transmitted over the air to a wide geographic
audience and is received by a Cable Communications System
off-the-air or by microwave link.
3.6 "Cable Communications System" or "System," also
referred to as "Cable Television System,", "CATY System," or
"Broadband Communications Network," means a system of anten-
nas, cables, amplifiers, towers, microwave links, cable-
casting studios, and any other conductors, converters,
equipment or facilities, designed and constructed for the
primary purpose of distributing video programming to home
subscribers, and the secondary purpose of producing,
receiving, amplifying, storing, processing, or distributing
audio, video, digital , or other forms of electronic or
electrical signals.
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3.7 "Cablecast Signal" means a nonbroadcast signal that originates
within the facilities of the Cable Communication System.
3.8 "Cable-mile" means a linear mile of strandbearing cable as
measured on the street or easement from pole to pole or pedestal to
pedestal.
3.9 "Channel" means a six Megahertz (MHz) frequency band, which
is capable of carrying either one standard video signal, a number of
audio, digital or other nonvideo signals, or some combination of such
signals, or otherwise as established by the FCC.
3.10 "Class IV Channel" means a signaling path provided by a
Cable Communications System to transmit signals of any type from a
subscriber terminal to another point in the cable television system.
3.10a "City" means the City of Jefferson City, and shall have
the same meaning as "Grantor" defined herein.
3.11 "Closed-Circuit" or "Institutional Service" means such video,
audio, data and other services provided to institutional users on an
individual application, private channel basis. These may include, but
not be limited to, two-way video, audio or digital signals among institu-
tions, or from institutions to residential subscribers.
3.12 "Commencement of Construction or (reference thereto) " means
that time and date when construction of the Cable Communications System
is considered to have commenced, which shall be when the preliminary �(
engineering (strand mappingl or network design is initiated, and after
all necessary permits and authorizations have been obtained. In the event
a franchise is awarded to a Grantee following the expiration of a franchise
which was not renewed, then construction shall commence upon mutual
agreement between Grantor and Grantee except that Grantee shall proceed
with commencement of construction as is practical and reasonable without
regard to Grantee's subjective financial or organizational status. j
3.13 "Commencement of operation (or reference thereto) " means that 1
time and date when operation of the Cable Communications System is
considered to have commenced, which shall be when sufficient distribution
facilities have been installed so as to permit the offering of full
service to at least twenty percent (20%) of the dwelling units located
within the service area.
3.14 "Commercial Subscriber" means a subscriber who receives a
service in a place of business, where the service may be utilized in
connection with a business, trade or profession.
3.15 "Converter" means an electronic device which converts
signal carriers from one form to another.
3.16 "Council" means the City Council of the City of
Jefferson.
3.17 "Educational Channel," or "Educational Access Channel"
means any channel where educational institutions are the only
designated programmers.
3.18 "FCC" means the Federal Communications Commission
and any legally appointed or elected successor.
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3.19 "Franchise" means the non-exclusive rights granted
pursuant to this ordinance to construct and operate a Cable ,
Communications System along the public ways within all or a
specified area in the City. Any such authorizations, in
whatever form granted, shall not mean or include any license
or permit required for the privilege of transacting and
carrying on a business within the City as required by other
ordinances and laws of this City.
3.20 "Franchise Agreement" means a franchise award ordi-
nance, accepted on the part of the Grantee, containing the
specific provisions of the franchise granted, including
referenced specifications, franchise applications, and other
related material . The franchise agreement may modify terms
of this ordinance by appropriate ordinance amendment.
3.21 "Franchise Payment" means all charges imposed for a
franchise.
3.22 "Governmental Channel" or "Government Access
Channel" means any channel where local government agencies
are the only designated programmers.
3.23 "Grantee" means any person receiving a franchise
pursuant to this ordinance and under the granting franchise
ordinance, and its lawful successor, trustee, receiver,
transferee or assignee.
3.24 "Grantor" means the City of Jefferson, as repre-
sented by its governing body acting within the scope of its
authority.
3.25 "Gross Annual Revenues" means the annual gross
revenues received by the Grantee from all sources of opera-
tions of the Cable Communications System, except that any
sales, excise or other taxes collected for direct pass-
through to local , state or federal government shall not be
included.
3.26 "Initial Service Area" means the area of the City
which will receive service initially, as set forth in- the
franchise agreement.
3.27 "Installation" means the connection of the system
from feeder cable to subscribers' terminals, and the provi-
sion of service.
3.27a "LACME" means LOCAL Access Channel Management
Entity, i.e., that person selegted by Grantor to operate,
manage, and produce local origination programming and public
access programming.
3.28 "Leased Channel " or ".eased Access Channel" means
any channel available for lease and programming by persons or
entities other than the Grantee, including those portions of the
other access channels not in usf by their designated programmers.
3.29 "Local Origination Channel " means any channel that
provides local non-broadcast programming to subscribers.
3.30 "Monitoring" means obgerving a communication
signal , or the absence of a signal , where the observer is
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neither the subscriber nor the programmer, whether the signal
is observed by visual or electronic means, for any purpose
whatsoever. (Provided monitoring shall not include system-
wide, nonindividually addressed sweeps of the system for pur-
poses of verifying system integrity, controlling return paths
transmissions, or billing for pay services. )
3.31 "Non-Broadcast Signal" means a signal that is
transmitted by a Cable Communications System and that is not
involved in an over-the-air broadcast transmission path.
3.32 "Obscenity/Pornography" means that which, when con-
sidered as a whole, by the average adult person, applying
contemporary community standards:
(a) predominantly appeals to the
prurient interest in sex; and
(b) depicts, describes or portrays in a
patently offensive manner human
sexual intercourse, sodomy,
bestiality, oral copulation, mastur-
bations, urinary and defecatory
functions, sadism, masochism, sado-
masochistic abuse, lewd exhibition
of the genitals or any touching of
the genitals, pubic areas or but-
tocks of the human male or female,
or the breasts of the female,
whether alone or between members of
the same or opposite sex, or between
• humans and animals in an act of
apparent sexual stimulation or
gratification; and
(c) when taken as a whole lacks serious
social , literary, artistic, politi-
cal or scientific value.
3.33 "Open Channel" means any channel that can be
received by all subscribers, without the necessity for spe-
cial equipment, other than a converter.
3.33a 'Ordinance" means any lawfully enacted order of a
political subdivision of the State of Missouri.
3.34 "Pay-Cable" or "Pay-Television" means the delivery
to subscribers, over the Cable Communications System, of
television signals for a fee or charge over and above the
charge for Basic Subscriber Service, on a per program, per
channel or other subscription basis.
3.35 "Penetration" means the result expressed in percen-
tage obtained by dividing the total number of potential
subscribers in the franchise area into the number of subscri-
bers receiving service.
3.36 "Person" means an individual, partnership, asso-
ciation, organization, corporation, other entity or any
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lawful successor, transferee or assignee thereof.
3.37 "Pornography". See 3.32 "Obscenity/Pornography".
3.38 "Private Channel" or "Closed-Circuit Channel" means
any channel which is available only to subscribers who are
provided with special converter or terminal equipment to
receive signals on that channel .
3.39 "Programmer" means any person or entity who or
which produces or otherwise provides program material or
information for transmission by video, audio, digital , or
other signals, either live or from recorded tapes or other
storage media, to subscribers, by means of the Cable
Communications System.
3.40 "Public Access Channel ," "Community Access
Channel ," or "Community Channel" means any channel where any
member of the general public or any non-commercial organiza-
tion may be a programmer, ,without charge, on a first-come,
first-served, non-discriminatory basis, in accordance with
FCC regulations, and regulations established by the local
access channel management entity (LACME) designated by the
City.
3.41 "Reasonable Notice" shall be a written notice
addressed to the Grantee at its principal office or such
other office as the Grantee has designated to the City as the
address to which notice should be transmitted, which notice
shall be either sent by certified mail (or its equivalent)
and postmarked not less than four (4) days prior to that day,
or delivered personally by Grantor by and through its repre-
sentative. In computing said four (4) days, Saturday,
Sundays and Holidays recognized by the City shall be
excluded. Actual notice shall be an absolute defense by the
Grantor in any future action of any kind by Grantee where
proper notice shall be an issue.
3.42 "Reasonable Order" shall be a written order not
excessive or extreme as to costs or time to comply.
3.43 "Resident" means any person residing in the City or
as otherwise defined by applicable law.
3.44 "Residential Subscriber" means a subscriber who
receives a service in an individual dwelling unit, where the
service is not to be utilized in connection with a business,
trade or profession.
3.45 "Sale" shall include any sale, exchange, barter or
offer for sale.
3.46 "School" means any educational institution
including primary and secondary schools, colleges and univer-
sities, both public and private.
3.47 "Section" means any section, subsectf.on, or provi-
sion of this ordinance.
3.48 "Service Area" means the entire geographic area
within the franchise territory.
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3.49 "State" me-ans the State of Missouri.
3.50 "Street" shall include each of the following which •
have been dedicated to the public or hereafter dedicated to
the public and maintained under public authority or by others
and located within the City limits: streets, roadways, high-
ways, avenues, lanes, alleys, sidewalks, easements, rights-
of-wady and similar public ways and extensions and additions
thereto, together with such other public property and areas
that the City shall permit to be included within the defini-
tion of street from time to time.
3.51 "Subscriber" means any person, firm, corporation,
or other entity who or which elects to subscribe to, for any
purpose, a service provided by the Grantee by means of or in
connection with the Cable Communications System.
3.52 "Substantially Completed" means that sufficient
distribution facilities have been installed by the Grantee so
as to permit the offering of full network service to at least
ninety percent (90%) of the potential subscribers in the ser-
vice area.
3.53 "Tapping" means observing a two-way communications
signal exchange, where the observer is neither of the com-
municating parties, whether the exchange is observed by
visual or electronic means, for any purpose whatsoever.
3.54 "Year" means the remaining portion of 1982.
Thereafter, "year" means a full calendar year.
SECTION 4: GRANT OF FRANCHISE
4.1 Grant.
In the event that Grantor shall grant to a Grantee
a non-exclusive, revocable franchise to construct, operate,
maintain and reconstruct a Cable Communications System within
the City, said franchise "shall constitute both a right and an
obligation to provide the services of a Cable Communications
System as required by the provisions of this ordinance and
the franchise agreement. The franchise agreement shall
include all provisions of a Grantee's proposal as finally
negotiated and accepted by the Grantor and Grantee.
Said franchise is granted under the terms and con-
ditions contained herein, consistent with applicable Missouri
Statutes which are incorporated by this reference as if fully
set forth herein. In the event of conflict between the terms
and conditions of said franchise and the terms and conditions
on which the Grantor can grant a franchise, Missouri Statutes
shall, without exception, control .
Said franchise is hereby made subject to the
general ordinance provisions now in effect or hereafter made
effective. Nothing in said franchise shall be deemed to
waive the requirements of the various codes and ordinances of
the City regarding permits, fees to be-paid or manner of
construction.
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4.2 Franchise Territory.
The Grantor may grant a franchise for all or any
defined portion of the City. The service area shall be the
entire territory defined in the franchise agreement. The
initial service area shall be that portion of the franchise '
territory scheduled to receive initial service, as stated in
the franchise agreement.
4.3 Use of Public Streets and Ways.
For the purpose of operating and maintaining a
Cable Communications System in the City, the Grantee may
erect, install , construct, repair, replace, reconstruct, and
retain in, on, over, under, upon, across, and along the
public streets and ways within the City such wires, cables,
conductors, ducts, conduits, vaults, manholes, amplifiers,
appliances, pedestals, attachments, and other property and
equipment as are necessary and appurtenant to the operation
of the Cable Communications System. Prior to construction or
alteration, however, the Grantee shall in each case file
plans with the appropriate City agencies, officers or depart-
ments, as designated by the City, and utility companies, and
receive written approval before proceeding.
4.4 Duration.
The term of said franchise and all rights, privile-
ges, obligations and restrictions pertaining thereto shall be
fifteen (15) years from the effective date of the franchise
unless abridged or terminated as hereinafter provided. The
effective date of the franchise ordinance shall be upon final
passage by the Council unless a Grantee fails to file within
fifteen (15) days after the date of notification of final
passage in the appropriate office of the City a written
acceptance of the franchise, in which event it shall be null
and void.
4.5 Franchise Non-exclusive.
Any franchise granted shall be non-exclusive. The
Grantor specifically reserves the right to grant, at any
time, such additional franchises for a Cable Communications
System as it deems appropriate.
4.6 Transfer of Ownership or Control.
(a) Transfer of Franchise.
Any franchise granted shall be a privilege to
be held for the benefit of the public. Said
franchise cannot in any event be sold, trans-
ferred, leased, assigned or otherwise disposed
of in any manner, including but not limited
to, forced or voluntary sales, merger, con-
solidation, receivership, or other means,
without the prior written consent of the City,
and then only under such conditions as the
City may establish and upon full disclosure of
all material facts by the Grantee. Such con-
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sent as required by the City shall , however,
not be unreasonably withheld.
The Grantee, upon transfer as heretofore
described, shall within sixty (60) days
thereafter file with the City a copy of the
deed, agreement, mortgage, lease or other
written instrument evidencing such sale,
transfer or lease, certified and sworn to as
correct by the Grantee.
Every such transfer as heretofore described,
whether voluntary or involuntary, shall be
deemed void and of no effect unless Grantee
shall within sixty (60) days after the same
shall have been made, file such certified copy
as is required.
(b) Ownership- or Control .
The Grantee shall promptly notify the City of
any actual or proposed change in, or transfer
of, or acquisition by any other party of
control of the Grantee. The word "control" as
used herein is not limited to major,
stockholders, but includes actual working
control in whatever manner exercised. A
rebuttable presumption that a change, transfer
or acquisition of control has occurred shall
arise upon the acquisition or accumulation by
any person or group of persons of two and one-
half percent (2-1/2%) or more of the voting
shares of the Grantee. Every change,
transfer, or acquisition of control of the
Grantee 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 qualifications of the prospective
controlling party, and the Grantee shall
assist the City in any such inquiry.
Upon the event of any transfer of any
ownership interest in Grantee, Grantee shall
notify the City and shall provide City with
all contracts, agreements or documents dealing
with or affecting said transfer. The Grantee
shall also pay all reasonable costs incurred
by the City. Payment shall be a prerequisite
to the approval of a transfer.
(c) Mortgage of Assets, When Allowed.
The Grantee shall not make, execute, or enter ,
into any deed, deed of trust, mortgage, con-
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ditional sales contract, or any loan, lease,
pledge, sale, gift or similar agreement con-
cerning any of the facilities and property,
real or personal , involved in the operation of
the cable TV business under a franchise
granted by the City except: '
(1) disposition or replacement of
worn out or obsolete equipment,
property or facilities in the
normal course of operating a
cable TV business, including
the renewal or extension of
equipment or property leases
and contracts; or
(2) acquisition, transfer, sale or
other disposition of leases,
licenses, easements, and other
interests in real property in
the normal course of operating
a cable TV business and not
involving the relinquishment of
any right or power affecting
the Grantee's abi 1 i ty to pro-
vide cable TV services in whole
or in part; or
(3) with prior approval of the City
based on a finding that the
proposed transaction will not
affect the Grantee' s ability
and responsibility to provide
cable TV services in accordance
with its franchise and will not
interfere with the City's
interest; or
(4) that a Grantee may pledge or
mortgage its assets to a finan-
cial institution in return for
sums necessary to construct or
operate (or both) the cable
system, provided that such
pledge or mortgage and related
agreements are filed with' the
City, upon request by the City,
and obligate and limit such
financial institution(s) as
follows: any foreclosure or
exercise of lien over the
franchise or facilities shall
only be by assumption of
control over the entire system
or a self-sufficient, separa-
tely operable head-end and its
dependent distribution system
of a multiple head-end system.
Prior to assumption of control ,
the institution shall notify
the City that it or a designee
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acceptable to the City will
take control of and operate the
system, and shall submit a plan •
for such operation insuring
continued service and
compliance with this ordinance
and all franchise obligations
during the term the institution
exercises such control . The
institution shall not exercise
control for longer than one (1 )
year unless extended by the
City for cause and shall be
entitled to petition the City
for transfer of the remaining
term of the franchise or award
of a new franchise to another
Grantee. The City shall
approve such transfer upon
finding that the legal , .finan
cial , character, technical and
other qualities of the proposed
Grantee are satisfactory and
that the transfer will promote
the public interest. Such
approval shall not be unreaso- .
nably'withheld.
(d) Preference For Local Not-For-Profit
Corporation.
The City reserves the right, all other things
being equal , in the event of a request for
approval of the transfer of the ownership of
the franchise by the Grantee, to grant pre-
ference to any local not-for-profit organiza-
tion which demonstrates a willingness and
capability to meet the terms and amount of the
bona fide offer made to the Grantee for
purchase of the franchise and network, which
shall in any, event be a fair market value. In
no event, however, shall the City delay ruling
on any request for approval of the transfer of
the ownership of the franchise by the Grantee
for more than sixty (60) days from receipt of
said request, which said request. shall include
all necessary documents relating to criteria
for said transfer as set out herein.
(e) Consent Not Waiver.
The consent or approval of the City. to any
transfer by the Grantee 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 said franchise.
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M Non-Approval of Transfer, When.
In the absence of extraordinary circumstances,
the City will not approve any transfer or
assignment of the franchise prior to substan-
tial completion of construction of the pro-
posed system.
(g) Successor Must Be Signatory.
In no event shall a transfer of ownership or
control be approved without the successor in
interest becoming a signatory to said
franchise agreement.
4.7 Franchise Renewal .
This franchise may be renewed upon application of
the Grantee pursuant to the following procedures and in
accordance with -the then applicable law.
(a) Renewal Notice.
At least eighteen (18) months prior to the
expiration of the franchise, Grantee shall
inform the City in writing of its intent to
seek renewal of the franchise.
(b) Satisfactory Performance Required.
After giving public notice, the City shall
proceed to determine whether the Grantee has
satisfactorily performed its obligations under
the franchise. To determine satisfactory per-
formance, the City shall consider technical
developments and performance of the system,
programming, or other services offered, cost
of services ,offered, and any other particular
requirements set in the ordinance; also, the
City shall consider the Grantee's annual
reports made to the City and the FCC; industry
performance on a national basis shall also be
considered. Provision shall be made for
public comment.
(c) . Time Frame.
A four (4) month period shall be provided to
determine the Grantee's eligibility for
renewal .
(d) Amendments Upon Determination of Eligibility.
The City shall then prepare within two (2)
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months any amendments to this ordinance that
it believes necessary.
(e) Renewal Periods.
If the City finds the Grantee's performance
satisfactory, a new franchise may be granted
pursuant to the ordinance as amended for an
additional period of five (5) years, but sub-
ject to municipal or not-for-profit cor-
poration ownership as defined and set out in
this ordinance. Subsequent renewals for five
(5) year periods may be applied for by Grantee
in accordance with the procedure outlined in
this section. At the discretion of the City,
longer periods of renewal may be granted.
4.8 Police Powers.
In accepting this franchise, the Grantee
acknowledges that its rights hereunder are subject to the
police power of the City to adopt and enforce general ordi-
nances necessary to the safety and welfare of the public; and
it agrees to comply with all applicable general laws and
ordinances enacted by the City pursuant to such power.
Any conflict between the provisions of this
franchise and any other present or future lawful exercise of
the City's police powers shall be resolved in favor of the
latter, except that any such exercise that is not of general
application in the jurisdiction or applies exclusively to
Grantee or Cable Communications Systems which contains provi-
sions inconsistent with this franchise shall prevail only if
the. City finds an emergency exists constituting a danger to
health, safety, property or general welfare or such exercise
is mandated by law.
4.9 Franchise Fee.
: (a) Annual Franchise Payment.
A Grantee of a franchise hereunder shall pay
to the City an annual fee in an,amount equal
to five percent (5%) of gross revenues.
Grantor reserves the right to change the
franchise fee, but shall not raise the said
franchise fee beyond what is paid by the
telephone and electric utilities. In no wise,
shall the franchise fee be raised within two
(2) years from the date of the franchise
agreement. Grantee affirms that its opera-
tions are in the nature of a utility and con-
sequently the imposition of this franchise fee
is merely the application of an existing tax
to the same class entity. (Should the
franchise fee amount be disputed by the FCC,
then the Grantee may be required to retain
i
amounts in dispute in escrow until the FCC and
the City shall have resolved the dispute. )
Such payment shall be in addition to any other
fee or tax and commence as of the effective
date of the franchise. In the event of a
dispute, the City, if it so requests, shall be
furnished a statement of said payment, by a
Certified Public Accountant, reflecting the
total amounts of annual gross revenues and the
above charges, deductions and computations for
the period covered by the payment. The CPA so
chosen shall be approved by the City. If the
City disapproves the Grantee's selection, the
Grantee shall choose another. The CPA shall
be one of at least a regional reputation for
honesty and competency. All charges for the
said CPA services shall be borne by the
Grantee.
(b) Acceptance by City.
No acceptance of any payment by the City shall
be construed as a release or as an accord and
satisfaction of any claim the City may have
for further or additional sums payable as a
franchise fee under this ordinance or for the
performance of any other obligation of the
Grantee.
(c) Failure to Make Required Payment.
In the event that any franchise payment or
recomputed amount is not made on or before the
dates specified herein, Grantee shall pay as
additional compensation:
(1 ) an interest charge, computed
from "such due date on such
amount-due, at the annual rate
equal to the commercial prime
interest rate in effect from
time to time during such period
until such amounts due are
fully paid, and
(2) a sum of money equal to expen-
ses, costs, and attorneys' fees
incurred by the City by reason
of delinquent payment.
(d) Monthly Payments.
Payments due the Grantor under this provision
shall be computed monthly and payable no later,
than thirty (30) days after the last day of
the month, on a cash basis. Each payment
shall be accompanied by a brief report showing • .
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the basis for the computation and such other
relevant facts as may be required by the
Grantor.
(e) Conflict of Laws.
Should it be adjudged or determined by a court
of competent jurisdiction that the amount of
said franchise fee as set out herein is in
conflict with state or federal law, then the
amount set by this ordinance shall be the
maximum allowable under controlling law.
4.10 Forfeiture, Revocation or Abridgement.
(a) Grounds for Revocation or Abridgement.
The City reserves the right to revoke any
franchise granted hereunder and rescind all
rights and privileges associated with the
franchise in the following circumstances, each
of which shall represent a default and breach
under this ordinance and the franchise grant:
(1 ) If the Grantee shall default in
the performance of any of its
material obligations under this
ordinance or under such docu-
ments, contracts and other
terms and provisions entered
into by and between the City
And the Grantee.
(2) If the Grantee should fail to
provide or maintain in full
force and effect, the liability
and indemnification coverages
or the performance bond as
required herein.
(3) If any court of competent
Jurisdiction, the FCC or any
state regulatory body by rules,
decisions or other action
determines that any material
provision of the franchise
documents, including this ordi-
nance, is invalid or unenfor-
ceable prior to the
commencement of system
construction.
(4) If the Grantee should fre-
quently violate any orders or
rulings of any regulatory body
having jurisdiction over the
Grantee relative to this
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I
franchise unless such orders or
rulings are being contested by
the Grantee in a court of com-
petent Jurisdiction.
(5) If the Grantee ceases to pro-
vide services for any reason
within the control of the
Grantee over the Cable
Communications System. The
Grantee shall not be declared
at fault or be subject to any
sanction under any provision of
this ordinance in any case in
which performance of any such
provision is prevented for
reasons beyond the Grantee's
control . A fault shall not be
deemed to be beyond the
Grantee's control if committed
by a corporation or other busi-
ness entity in which the
Grantee holds a controlling
interest or which holds, alone
or with others, a controlling
interest in Grantee, whether
held directly or indirectly.
(6) If the Grantee attempts to
evade any of the provisions of
this ordinance or the franchise
agreement or practices any
fraud or deceit upon the City.
(7) If the Grantee' s construction
schedule is delayed for more
than six (6) months later than
the schedule contained in the
franchise agreement.
(8) If the Grantee becomes
insolvent, unable or unwilling
to pay its debts, or is
adjudged as bankrupt.
(b) Procedure Prior to Revocation.
(1 ) The City may make written
demand that the Grantee do so
comply with any such require-
ment, limitation, term, con-
dition, rule or regulation or
correct any action deemed cause
for revocation. If the
failure, refusal or neglect of
the Grantee continues for a
period of thirty (30) days
following such written demand,
the City may place. its request
for termination of the
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R
franchise upon a Council
meeting agenda. The City shall
cause to be served upon such
Grantee, at least ten (10)
business days prior to the date
of such Council meeting, a
written notice of this intent
to request such termination,
and the time and place of the
meeting, notice of which shall
be published by the City Clerk
at least once ten (10) business
days before such meeting in a
newspaper of general ci r-
culation within the City.
(2) The Council shall hear any per-
sons interested therein, and
shall determine, in its discre-
tion, whether or not any
failure, refusal or neglect by
the Grantee was with Just
cause. :
(3) If such failure, refusal or
neglect by the Grantee was with
just cause, the Council shall
direct the Grantee to comply
within such time and manner and
upon such terms and conditions
as are reasonable.
(4) If the Council shall determine
such failure, refusal or
neglect by the Grantee was
without Just cause, then the
Council may, by ordinance,
declare that the franchise of
such Grantee shall be ter-
minated and bond forfeited
unless there be compliance by
the Grantee within such period
as the Council may fix.
(c) Abridgement of Franchise Term.
After following the procedure set out herein
prior to revocation, and the Council finding a
violation of this franchise, but not of suf-
ficient gravity to require revocation of this
franchise, or if the Council determines that
revocation would not serve the public health,
safety and welfare, the Council may abridge
the term of the franchise. For each offense
or violation the Council may abridge the term
of the franchise for a period of time not less
than 30 days but not more than 180 days. Each
day's violation of this section may be con-
sidered a separate offense. Abridgement of
the franchise term:
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,I
(1) Shall be made by ordinance,
which ordinance shall state the
findings and conclusions of the
Council .
(2) Shall be cumulative, and irre-
vocable. Upon passage of an
ordinance the abridgement term
shall be subtracted from the
term of the franchise and a new
termination date established.
(3) In no case', however, shall
total abridgement terms accumu-
late to more than five (5)
years.
(d) Disposition of Facilities.
In the event a franchise expires, is revoked
or otherwise terminated, the City may order
the removal of the system facilities from the
City within a reasonable period ,of time as
determined by the City or require the original
Grantee to maintain and operate its network
until a subsequent Grantee is selected.
(e) Restoration of Property.
In removing its plant, structures, and equip-
ment, the Grantee shall refill , at its own
expense, any excavation that shall be made by
it and shall leave all public ways and places
in as good condition as that prevailing prior
to the Grantee's removal of its equipment and
appliances without affecting the electrical or
telephone cable wires or attachments. The
City may i-nspect and approve the condition of
the public ways and public places; and cables,
wires, attachments and poles after removal .
The liability, indemnity and insurance as pro-
vided herein and the performance bond provided
shall continue in full force and effect during
the period of removal and until full
compliance by the Grantee with .the terms and
conditions of this paragraph and this ordi-
nance.
(f) Restoration by City, Reimbursements of Costs.
In the event of a failure by the Grantee to
complete any work required by subsection (d)
above and/or subsection (e) above, or any
other work required by City law or ordinance
within the time as may be established and to
the satisfaction of the City, the City may
cause such work to be done and the Grantee
shall reimburse the City the cost thereof -
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within thirty (30) days after receipt of an
itemized list of such costs or the City may
recover such costs through the security fund
provided by the Grantee. The City may seek
legal and equitable relief to enforce the pro-
visions of this section.
(g) Extended Operation.
Upon either the expiration or revocation of a
franchise, the City may require the Grantee to
continue to operate the network for an
extended period of time not to exceed six (6)
months from the date of such expiration or
revocation. The Grantee shall , as trustee for
its successor in interest, continue to operate
the Cable Communications System under the
terms and conditions of this ordinance and the
franchise and to provide the regular
subscriber service and any and all of the ser-
vices that may be provided at that time. The
City may seek legal and equitable relief to
enforce the provisions of this section.
(h) City's Right Not Affected.
The termination and forfeiture of any
franchise shall in no way affect any of the
rights of the City under the franchise or any
provision of law.
4.11 Receivership and Foreclosure.
(a) Termination Upon Bankruptcy.
The franchise herein granted shall at the
option of the City Council , cease and ter-
minate one hundred twenty (120) days after the
appointment of a receiver or receivers or
trustee or trustees to take over and conduct
the business of the Grantee whether in a
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:
(1 ) Such receivers or trustees
shall have, within one hundred
twenty (120) days after their
election or appointment, fully
complied with all the terms and
provisions of this ordinance
and the franchise granted pur-
suant hereto, and the receivers
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1
1
or trustees within said one
hundred twenty (120) days shall
have remedied all defaults
under the franchise; and
(2) Such receivers or trustees
shall , within said one hundred
twenty (120) days execute an
agreement duly approved by the
court having jurisdiction in
the premises, whereby such
receivers or trustees assume
and agree to be bound by each
and every term, provision, and
limitation of said franc4se.
(b) Termination Upon Foreclosure.
In the case of a foreclosure or other judicial
sale of the plant, property and equipment of
the .Grantee, or any part thereof, including or
excluding this franchise, the Council may
serve notice of termination upon the Grantee
and the successful bidder at such sale, in
which event said franchise and all rights and
privileges of the Grantee thereunder shall
cease and terminate thirty (30) days after
service of such notice, unless:
(1 ) The Council shall have approved
the transfer of said franchise,
as and in the manner in this
ordinance provided, and
(2) Such successful bidder shall
have covenanted and agreed with
the City to assume and be bound.
by all the terms and conditions
of said franchise.
4.12 Franchise Required.
No Cable Communications System shall be allowed to
occupy.. or use the streets of the City or be allowed to
operate without a franchise in accordance with the provisions
of this ordinance.
SECTION 5: REGULATION OF FRANCHISE
5.1 Regulatory Authority.
The Grantor shall exercise appropriate regulatory
authority under the provisions of this ordinance and appli-
cable law. Grantor may, at its sole option, participate with
other governmental entities in a joint regulatory agency,
with delegated responsibility in the area of cable and
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related communications.
S.2 Regulatory Responsibility.
The Grantor, if acting Jointly with other Grantors,
may delegate the following regulatory responsibility: '
(a) Administration and Enforcement.
Administration and enforcement of the provi-
sions of the Cable Communications System
franchise(s).
(b) Coordination.
Coordination of the operation of government
and educational channels.
(c) Support to Public Agency Users.
Provision of technical , programming and opera-
tional support to public agency users, such as
City departments, schools and health care
institutions.
(d) Procedures and Standards for Institutional
Operations.
Establishment of procedures and standards for
institutional operations and services, use of
dedicated channels, and sharing of public
facilities.
(e) Planning.
Planning of expansion and growth of cable ser-
vices, including interconnection of various
cable TV company systems.
(f) Interconnection.
Analysis of the possibility of integrating
cable communications with other City, State or .
regional telecommunications networks.
(g) Policy.
Formulation and recommendation of long range
telecommunications policy for the City.
(h) Community Channels.
Selection and implementation of all things
necessary to establish an entity that would
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ensure access and community channels that
serve the public interest.
5.3 Rate Regulation.
(a) Initial Rates.
(1 ) The Grantee shall establish
initial rates that must be
applied fairly and uniformly to
all subscribers in the City for
its services in accordance with
the rates contained in the
franchise agreement.
(2) Initial basic subscriber rates
shall be effective for a mini-
mum of two (2) years from the '
date the franchise is granted
or for one 0 ) year after
construction is completed,
whichever is longer.
(b) Rate Modification Authority.
The Grantee may request a rate
change only once in any twelve (12)
month period, after the guaranteed
period shall expire.
(c) Rate Regulation.
(1 ) The City shall have the power
to approve or disapprove any
and all regular subscription
rates, installation charges and
other charges including premium
charges and amounts for leased
channels proposed by the
Grantee for and in connection
with television and radio
signals distributed hereunder.
Such rates and charges shall be
fair and reasonable and no
higher than necessary to meet
all costs of service with effi-
cient and economical manage-
ment, including a fair return
on the original cost plus
improvements, less depre-
ciation, of the properties
devoted to such service,
without regard to any sub-
sequent sale or transfer price
or cost of such properties.
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I In further clarification
regarding the regulation of
rates in the case of a sale, or `
other transfer or merger, of {
the system serving the City of
Jefferson, rates will not be i
established on the basis of any
purchase price, or amount allo-
cated as a value for the system
serving the City of Jefferson.
Rates will only be set and
established on the basis of the
criteria set out herein. This '
policy and law is so set by
reason of the fact that as of
the passage of this ordinance
the acquisition's of cable tele-
vision systems are occurring at
a high rate at prices that fre-
quently do not reflect true
value,. The City shall not per-
mit the development of a cable
television system constructed I
for the sole purpose of even-
tual sale. The City requires
rates that accurately reflect
the cost of doing business
according to the criteria set
out herein. The subscribers of
the City of Jefferson franchise
area shall not pay for value
that the City, by the grant of
a franchise, will have con- .
ferred on a franchisee.
• i
(2) The City shall have the power,
authority, and right to cause
the Grantee's rates and charges
to conform to the provisions of
subsection 1 hereof, , and for
this purpose the City 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 con-
form to the said subsection 1,,.
(d) Procedure. i
' Upon the filing of a petition for a rate
than e, the City shall have one hundred fifty
(150? days to do all things necessary to
render a written decision on Grantees peti-
tion, either accepting, rejecting, modifying '
or deferring the same and reciting the basis ?
of its decision. The City shall consider,
inter alia, the following factors in approving
-23
f
i
or disapproving the petition:
(1 ) The ability of the Grantee to •
render System services and to
derive a reasonable profit
therefrom under the existing
rate schedule and under the
proposed rate schedule;
(2) The revenues and profits i
derived from System services;
(3) The efficiency of the Grantee;
(4) The quality of the service
offered by the Grantee:
(5) The original cost oF she System
plus improvements less depre-
ciation
(6) A fair rate of return with
respect to Grantee's
investment;
(7) The extent to which the Grantee
has adhered to the terms of
this agreement;
(8) Fairness to City residents,
subscribers and users. The
City may hold public hearings
to receive subscriber comments
at its discretion; and,
(9) The City shall not consider any .
valuation based upon this
franchise or the Grantee's
goodwill and these items of
value shall neither be amor-
tized as an .expense nor shall a
return'be paid on them.
(e) Schedule If Delegated.
If the City shall delegate the enforcement of
this ordinance under contract, as authorized
by Art. 6 § 16 of the Missouri Constitution
and Chapter 70 R.S.Mo., the entity to which
such authority is delegated shall consider and
make recommendation to the City within ninety
(90) days from receipt of the petition for !
rate change. The City shall have up to sixty
(60) days thereafter to consider. the recommen-
dation and act thereon. The City may
disapprove or deny the recommendation by a
simple vote of .its governing body, but shall
approve the recommendation of the authority
established under Art. .6 6 16 of the Missouri
Constitution by ordinance. But, in any event, .
-24-
• 1
1
and nothing herein said to the contrary, any
rate change shall not become effective unless =
so approved by all the local government
entities' signatory to a contract executed
pursuant to Art. 6 6 16 of the Missouri
Constitution and Chapter 70 R.S.Mo.
Z
(f) Rates Effective Upon Failure of Written I
Decision To Be Rendered.
If the City fails to render a written decision
either accepting, rejecting, modifying or
deferring Grantee's petition within one
hundred eighty (180) days of the Grantee's
petition pursuant to subsection (b) above, the
Grantee shall thereafter be entitled to put
its proposed new rates into effect.
. (g) Financial Reports Required.
The Grantee's petition for a rate increase
shall include, but not be limited to, the
following financial reports, which shall
reflect the operation of the system.
(1) Balance Sheet
(2) Income Statement
(3) Statement of Sources and
Applications of Funds
(4) Detailed Supporting Schedules
of Expenses, Income, Assets and
other items as may be required
(5) Statement of Current and
Projected Subscribers and
Penetration.
The Grantee's accounting records applicable to
the system shall be available for inspection
by the City at all reasonable times. The City
shall have access to records of financial i
transactions for the purpose of verifying {
rates direct or indirect costs prorated to the
operation. The documents listed above shall
include sufficient detail and/or footnotes as
may be necessary to provide the City with the '
information needed to make accurate deter-
minations as to the financial condition and i
operating results of the system. All . finan-
cial statements shall be certified, if
requested by the City, as accurate by a cer-
tified public accountant and an executive '
officer of Grantee. The City shall have I
access to as many prior years of financial
information as it deems necessary.
-25
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(h) Schedule of Rates.
A Grantee shall maintain and file with the
City a complete schedule of all rates
including all fees and charges, if any, for
services not subject to approval by the City.
(i) Disconnections.
There shall be no charge for disconnection
from the network. However, if 'a subscriber
has failed to pay monthly fees due or if a
subscriber disconnects for seasonal periods,
the Grantee may require, in addition to full j
payment of any delinquent fees, a reasonable
fee for reconnection.
i
(3) No Consideration Beyond Schedule.
The Grantee shall receive no consideration
whatsoever for or in connection with its pro- ?
vision of service to its subscribers other
than as set forth in this section or as filed II
with and/or approved by the City. i .
(k) Refunds to Subscribers and Programmers. � .
i
(1 ) If the Grantee fails to provide
any service requests by a
subscriber or programmer, the
Grantee shall , after adequate
notification and being afforded
the opportunity to provide the
service, promptly refund all � .
deposits or advance charges
paid for the service in
quest4on by said subscriber or
programmer.
(2) If any subscriber terminates
any monthly service during the
first twelve (12) months of
said service because of the
failure of the Grantee to
render the service. in accor-
dance with the standards set
forth in this ordinance, the
Grantee shall refund to such
subscriber an amount equal to 1
the installation or reconnec-
tion charges paid by the
subscriber multiplied by the
fraction of the twelve (12)
month period for which the
subscriber will not be ( .
receiving service. In the
event that said subscriber has
made an annual payment in .
-26-
advance, a similar portion of
said payment shall be refunded
by the Grantee.
(3) If any subscriber terminates,
for personal reasons, any
monthly service prior to the
end of a prepaid period, a
prorata portion of any prepaid
subscriber service fee, using
the number of days as a basis,
shall be refunded to the
subscriber by the Grantee.
(1) Costs of Rate Regulation to Grantee.
All costs to the City arising out of a peti-
tion for rate change shall be borne by
Grantee. Costs shall include, but not be
limited to consultant's fees, attorney's fees,
and administrative expenses. The payment of
said costs shall be a condition precedent
before any rate change shall become effective.
Costs shall be reasonable.
(m) Annual Review.
Notwithstanding anything to the contrary
herein, an inflationary increase of up to
eight percent (8%) shall be allowed annually
upon a showing of need. To obtain the
increase Grantee shall file its written
request within ninety (90) days after the
end of Grantee's fiscal year. The written
request shall substantiate the inflationary
pressures and the costs of doing business,
and shall state the increase in per cent
and real dollars. The increase shall go into
effect automatically on the sixtieth (60th)
day after filing except if the City shall deny
said increase by ordinance. Any denial of the
inflationary increase shall only be done upon
the basis that said inflationary pressures are
nonexistent or inaccurately portrayed.
(n) Automatic Pass-Through of Copyright and LACME
Costs.
For purposes of establishing rates, copyright
expenses and amounts allocated to the local
access channel management entity (LA(ME) shall
be an add-on to rates and shall be automati-
cally passed through to subscribers. Amounts
allocated to copyright and LACME costs shall
be shown separately on the monthly bill to
subscribers.
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(o) Pass-through of Franchise Fees, When.
In the event the City increases franchise
fees, any increase over the five per cent
(5%), now established, shall be an add-on to
rates and shall be automatically passed
through to subscribers. After the initial
guaranteed rate period shall have expired,
Grantee may petition the City for permission
to establish the entire franchise fee as an
add-on to rates.
5.4 Local Access Channel Management.
(a) Intent.
In order to achieve utilization of access
channels that is in the best .public' interest,
it is the intent of the Grantor to ensure that
the access and community channels are governed
by an appropriate not-for-profit entity, so j
that these channels may be open to all resi-
dents of the City and available for all forms
of public expression, community information,
and debate of public issues. The appropriate
entity shall be created, chosen or designated ,.
by the City Council and shall have substan-
tially the following form, functions, proce- 1
dures and support:
r
E .
(b) Functions.
I
The local access channel management entity
(LACME) shall have the following functions:
(1 ) Responsibility for program pro-
duction for and management of
the Public Access Channel and
all other channels as may in
the franchise agreement be
designated for community-based I
programming. Community chan-
nels may include Government and f
Educational Access channels, .as
designated in 'the franchise
agreement.
(2)" To assure that the Public
Access and. Community channels
are made available to all resi-
dents of the City on a non-
discriminatory, first-come, . t
first-served basis.
(3) To assure that no censorship or
control over program content of
the Public Access and Community
channel (s) exist, except as is
�r-
-28-
necessary to comply with the
prohibition of material that is '
obscene, or material that con-
ducts a lottery.
' (4) To devise, establish and admi-
nister all rules, regulations
and procedures pertaining to
the use and scheduling of the
Public Access and Community
channels.
(5) To prepare, in conjunction with
the Grantee, such regular or
special reports as may be
required or desirable.
(6) To hire and supervise staff. j
(7) To make all purchases of
materials and equipment that
may be requi red.
(8) To develop additional sources
of funding, such as foundation
or federal or state grants, to
further community programming.
- (9) To perform such other functions
relevant to the Public and
Community channels) as may be
appropriate.
(c) Access Rules. i
4
The LACK shall complete a set of rules for
the use of the Access and Community channel.s.
which shall be promptly forwarded to the
Grantor. The rules shall be prepared in con-
sultatson with the Grantor, and confirmed by a
contractual agreement between the LACK and
the Grantor. The rules shall , at a minimum,
provide for:
(1) Access on a first-come, first- ,
served, non-discriminatory
basis for all residents of the
City; ..
I .
(2) Prohibition of advertising for
political purposes, as defined
by, the FCC;
(3) Prohibition of any presentation
of lottery information, or
obscene or indecent material ;
(4) Public inspection of the log of
producers, which shall be
retained by the LACK for a
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1
+
1 period of two (2) years;
! (5) Procedures by which individuals
or groups who violate any rule i
may be prevented from further
access to the channel ; and
i(6) Free use of such reasonable
amounts of channel time, cable- j
casting facilities, and tech-
nical support as are provided
for in the agreement between
the LACME *and the Grantor.
f
(d) Funding For The Local Access Channel
Management Ent1ty. f
It is the intent of the Grantor that the LACME
obtain partial funding from the Grantee, to
the extent defined in the franchise agreement.
(e) Local Access Channel Management Entity Reports
to Grantor.
The LACME shall provide a report to the
Grantor, at least annually, indicating
achievements in community-based programming
and services. The LACME shall also provide a
special report each time Grantee requests an
increase in rates, indicating the level and
quality of Grantee's support, during the
period elapsed since any previous rate
increase was implemented. E
(f) Grantor Approval Upon Delegation.
Should the enforcement of this ordinance be
delegated, the entity to.which enforcement is
delegated shall first seek Grantor's approval
of a contract with the LACME chosen before
entering into said contract.
f
5.5 Other Business Activities of Grantee.
During the period of the franchise, neither the
Grantee nor its affiliates,
any of f or parent
organizations, officers or directors or stockholders holding
two percent (2%) or more of outstanding stock of the Grantee
shall , within the corporate limits of the City or within ten
(10) miles in any direction, directly or indirectly engage in
the retail sale, renting or repairing of radio or television
receivers, nor. require any subscriber to purchase, rent or j
lease radios or televisions at any specific business renting,
leasing or selling radios or televisions or to utilize the J
services of any specific TV or radio service business for the
repair or maintenance of the subscriber's receivers, either .
1
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radio or TV, wheresoever located.
The purpose of this provision is to encourage com-
petition• by discouraging market forces that would tend to
place the television repair and sales business with Grantee.
SECTION 6: GENERAL FINANCIAL AND INSURANCE PROVISIONS j
6.1 Performance Bond. f
i
(a) When Filed, Amount.
i
Within thirty (30) days after the granting of '
this franchise and prior to the commencement
of any construction work by the Grantee, the
Grantee shall file with the City a performance
and surety bond in the amount of One Hundred
Thousand Dollars ($100,000.00) in favor of the
City and any other person who may claim dama-
ges as a result of the breach of any duty by
the Grantee assured by such bond. In the M
event the Grantee shall faithfully comply with � .
all applicable statutes, ordinances and regu-
lations governing the franchise and shall
faithfully complete the construction of the
facilities contemplated herein and shall
receive a certificate of completion from the
City, then the obligation under such bond
shall be void, otherwise it shall remain in.
full force and effect.
(b) Form Approved by City Counselor.
Such bond as contemplated herein shall be in
the form approved by the City Counselor and
shall, among other matters, cover the cost of
removal of any properties installed by the
Grantee in the event said Grantee shall
default in the performance of its franchise
obligation.
.(c) No Limitation of. Liability.
In no event shall the amount of said bond be
construed to limit the liability of the ,
Grantee for damages.
+
6.2 Compliance Bond.
t
(a) When Filed, Amount. 1
In addition to the performance bond set forth
above, the Grantee shall , at least thirty (30)
days prior to the commencement of operation,
file with the City a compliance bond in the �.
i
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amount of One Hundred Fifty Thousand Dollars
($150,000.00) in favor of the City and any
other person who may be entitled to damages as
a result of any occurrence in the operation or
termination of the Cable Communications System
operated under this franchise, and including
the payments required to be made to the City
hereunder.
(b) Form Approved By City Counselor. f
Such bond as contemplated herein shall be in
the form approved by the City Counselor and i
shall , among other matters, cover the cost of '
removal of any properties installed by the
Grantee in the event said Grantee shall i
default in the performance of its franchise
obligation.
(c) No Limitation of Liability. {
In no event shall the amount of said bond be
construed to limit the liability of the
Grantee for damages.
i
6.3 Security Fund.
(a) When Filed, Amount.
Within thirty (30) days after the effective
date of the franchise, the Grantee shall depo-
sit into a bank account established by the
City and maintain on deposit through the term
of this franchise, the sum of Five Thousand
Dollars ($5,000.00), as security for the
faithful performance by it of all the provi-
sions of this franchise, and compliance with
all orders, permits and directions of any
agency of the Grantor having Jurisdiction over
Grantee's acts or defaults under this
contract, and the payment by the Grantee of
any claims, liens and taxes due the Grantor
which arise by reason of the construction,
operation or maintenance of the system.
(b) Restoration of Fund.
Within thirty (30) days after notice to it 1
that any amount has been withdrawn by the City i
from the security fund, the Grantee shall
deposit a sum of money sufficient to restore
such security fund to the original amount. j
t
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I
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W Fund Use Upon Failure of Grantee Payment Due.
f
If the Grantee fails, after ten (10) business •
days notice to pay to the City any taxes due
and unpaid; or, fails to repay to the City,
within such ten (10) business days, any dama-
ges, costs or expenses which the City shall be
compelled to pay by reason of any act or
default of the company in connection with this
franchise; or fails, after thirty (30) days
notice of such failure to comply with any pro- i
vision of the franchise which the City reaso-
nably determines can be remedied by an !
expenditure of the security, the City may
immediately withdraw the amount thereof, with
interest and any penalties, from the security
fund. Upon such withdrawal , the Grantor shall
notify the Grantee of the amount and date
thereof.
(d) Cancellation of Franchise.
The security fund deposited pursuant to this
section shall become the property of the � .
Grantor in the event that the franchise is
cancelled by reason of the default of the
Grantee or revoked for cause. The Grantee,
however, shall be entitled to the return of
such security fund, or portion thereof, as
remains on deposit at the expiration of the
term of the franchise, or upon termination of
the franchise at an earlier date, provided
that there is then no outstanding default on
the part of the Grantee.
(e) Reservation of Rights.
The rights reserved to the Grantor, with
respect to the security fund are in addition
to all other rights of the Grantor whether
reserved by this contract or authorized by
law, and no action, proceeding or exercise of
a right with respect to such security fund
shall affect any other right the Grantor may I
have.
6.4 •Indemnification.
(a) Grantee shall , at its sole cost and expense,
fully indemnify, defend and hold harmless the
City, its officers, board, commissions,
employees and volunteer workers against any
and all claims, suits, actions, liability and
judgments for damages (including but not j
limited to expenses for reasonable legal fees
and disbursements and liabilities assumed by
the City in connection therewith):
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(1) To persons or property, in any
way arising out of or through
the acts or omissions of
Grantee, its servants, agents
or employees, or to which
Grantee's negligence shall in
any way contribute;
(2) Arising out of any claim for
invasion of the right of pri-
vacy, 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 cor-
poration (excluding claims f
arising out of or relating to
City- programming); and
(3) Failure to comply with any
ordinance or Federal or State
Statute.
. I
(b) The foregoing indemnity is conditioned upon
the following: The City shall give Grantee
prompt notice of the making of any claim or
the commencement of any action, suit or other I
proceeding covered by the provisions of this '
section. Nothing herein shall be deemed to
prevent the City from cooperating with Grantee
and participating in the defense of any liti-
gation by its own counsel at its sole cost and
expense.
(c) Grantee shall secure indemnity coverage from 1
an -insurance carrier licensed to transact
business in .the State of Missouri in an amount
not less than $1,000,000.00.
6.5 Insurances.
(a) Kinds, Amounts.
The Grantee shall maintain, throughout the
term of the franchise, insurance in amounts at
least as follows: i
(1 ) Workman's Compensation
Insurance•
In such coverage as may be
required by the workman's com-
pensation insurance and safety
laws of the State of Missouri
and amendments thereto. 1
-34-
i
(2) Grantee's Liability:
Each occurrence: $500,000.00; '
aggregate $1 ,000,000.00. '
(3) Comprehensive General
41a •
Bodily injury each person
$500,000.00 and each occurrence
$1 ,000,000.00; property damage,
each accident $500,000.00.
(4) Comprehensive Automobile j
Liability:
-
Including non-ownership and
hired car coverage as well as
owned vehicles with minimum
limits as follows: bodily
injury for each person
$300,000.00 and each occurrence
$1 ,000,000.00; property damage
for each occurrence i.
$100,000.00.
(b) Copies Furnished.
The Grantee shall furnish the City with copies
of such insurance policies and certificates of
insurance. tf
(c) Endorsement.
Such insurance policies provided for herein
shall name the City, its officers, boards,
commissions, agents and employees as addi-
tional insureds and shall contain the
following endorsement:
"It is hereby understood and
agreed that this insurance
policy. may not be cancelled by
the surety or the intention not
to renew,be stated by the
surety until thirty (30) days
after. receipt by the City by
registered ma i 1 of written
notice of such intention to I
cancel or not renew."
i
(d) No Limitation of Liability.
The minimum amounts set forth herein for such `
insurance shall not be construed to limit the `
liability of the Grantee to the City under the
franchise issued hereunder to the amounts of ,
such insurance. 4
-35
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6.6 Franchise Processing Costs.
Costs incurred in the franchise selection process
by the City shall be limited to the amount specified in the
Request For Proposal . Costs shall include but not be limited
to, all costs of publication of notices, publication of this
ordinance, consultant' s and attorneys' fees, allocable staff
time, and all incidental costs. These costs are separate and
in addition to all other costs or expenses set out elsewhere
in this ordinance. Specifically any costs or expenses coming
under the terms of paragraph 6.4 herein are separate and in j
addition to costs and expenses set out herein.
6.7 Ad3ustment of Established Amounts. I
The City shall have the power from time to time to
review the adequacy of the amounts of performance and
compliance bonds, the amount required in the security fund,
and insurance coverage amounts. If because of changed cir-
cumstances, such as, but -not limited to, inflation, costs of
materials, and/or the record of performance of the Grantee,
the City determines that any or all of the amounts set are
inadequate, the City shall notify the Grantee by sending
Grantee a document detailing the proposed changes. Grantee,
shall have thirty (30) days to reply. After consideration of
Grantee's reply, if any, the City shall establish new amounts
as it .deems reasonable to protect the public welfare and pro-
vide for the common good.
• i
SECTION 7: DESIGN AND CONSTRUCTION PROVISIONS
7.1 §Xstem Design.
a
The Cable Communications System shall be
constructed in accordance with the design requirements con- � .
tained in the franchise agreement. i
7.2 Geographical Coverage.
The Grantee shall design and construct the Home
Subscriber Network in such a manner as to have the eventual
capability to pass by every single-family dwelling unit,
multiple-family dwelling unit, agency, and business
establishment within the area of the franchise. Service
shall be provided to subscribers i.n accordance with the sche-
dules and line extension policies specified in the franchise
agreement.
7.3 Cablecasting Facilities. {
The Grantee shall provide cablecasting facilities
in accordance with the requirements of the franchise
agreement.
7.4 Early Extension.
In areas not meeting the requirement for mandatory }
extension of service, Grantee shall provide, upon the request
of a potential subscriber desiring service, an estimate of -
. I
-36-
the costs required to extend service to said subscriber.
Grantee shall then extend service to said potential
subscriber. Grantee may require advance payment or assurance
of payment satisfactory to Grantee. The amount paid by
subscribers for early extension shall be nonrefundable, even
if the area subsequently reaches the density required for
mandatory extension.
7.5 System Construction Schedule. E
(a) Requirements. !
The Grantee shall comply with the requirements
of the system construction schedule contained
in the franchise agreement.
(b) Service Not Provided, Where.
Service need not be provided where power and
telephone utilities are not available.
(c) Provision of Plans. � •
In conjunction with construction, the Grantee
shall provide a detailed construction plan,
indicating progress schedule, area construc-
tion maps, test plan, and projected dates for
offering service. In addition, the Grantee
shall update this information on a monthly i
basis, showing specifically whether schedules i
are being met and the reasons for any delay. I
(d) Revocation. i
Failure to begin construction within six (6)
months after award of the franchise and access
to utility poles is gained will be grounds for
franchise revocation, at the option of- the
Grantor. Access to utility poles shall mean
when the proper franchise documents have been
enacted, and when the utility companies have
authorized Grantee to proceed. In no way
shall Grantee be required to build its system
except on strand presently in place. Grantee
shall negotiate with the utility companies in j.
all good haste .and in good faith. If it shall j
be found by City that Grantee is not pro-
ceeding with negotiations with said utility '
companies in a timely fashion, and in good
faith, this shall be grounds for revocation.
7.6 Penalties for Delay in Construction.
The Grantor may at its sole option, apply any of I
the following in connection with delays in system
construction: E
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I
(a) Reduction of Franchise Period.
Reduction in the duration of the franchise on
a month-to-month basis for each month of
delay.
(b) Forfeiture of Bonds.
Forfeiture of performance bonds for delays
exceeding one (1 ) year. !
(c) Termination.
Termination of the franchise for delays
exceeding six (6) months.
I '
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7.7 Provision of Service.
After service has been established by activating
trunk cables for any area, neighborhood or group of homes
meeting the criteria of the initial service area and the line
extension policy thereof, the Grantee shall provide service C
to any requesting subscriber or resident thereof within
ninety (90) days from the date of request.
7.8 Undergrounding of Cable.
The undergrounding of cables is encouraged. In any
event, cables shall be installed underground at Grantee's I
cost where existing utilities are already underground. I
Previously installed aerial cable shall be undergrounded in
concert, and on a cost-sharing basis, with other utilities,
when such other utilities may convert from aerial to
underground construction.
7.9 New Development- Undergrounding.
In cases of new construction or property develop-
ment where utilities are to be placed underground, the deve-
loper or property owner shall give Grantee reasonable notice
of such construction or development, and of the particular
date on which open trenching will be available for Grantee's
installation of conduit, pedestals and/or vaults, and
laterals to be provided at Grantee's expense. Grantee shall
also provide specifications as needed for trenching.
Costs of trenching and easements required to bring
service to the development shall be borne by the developer or
property owner; except that if Grantee fails to install its
conduit, pedestals and/or vaults, and laterals within five
(5) working days of the date the trenches are available, as
designated in the notice given by the developer or property
owner, then should the trenches be closed after the five (5)
day period, the cost of new trenching is to be borne by
Grantee. Notice provided to Grantee by City of a preliminary
plat request shall satisfy the requirement of reasonable
notice if sent to the local general manager or system
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engineer of Grantee prior to approval of the preliminary plat
request.
7.10 ' Street Occupancy.
(a) Utilization of Existing Poles.
Grantee shall utilize existing poles, conduits
and other facilities whenever possible, and t
shall not construct or install any new, dif-
ferent, or additional poles, conduits, or !
other facilities whether on public property or
on privately-owned property until the written i
approval of the City is obtained, which appro-
val shall not be unreasonably withheld. y
However, no location of any pole or wire 1
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 determines
that the public convenience would be enhanced
thereby. The Grantee shall negotiate the
lease of pole space and facilities from .
existing pole owners.
(b) Notification of Construction.
Grantee shall notify the City at least ten
(10) business days prior to the intention of
the Grantee to commence any construction in
any streets. The City shall cooperate with
the Grantee in granting any permits required,
providing such grant and subsequent construc-
tion by the Grantee shall not unduly interfere
with the use of such streets and that proposed
construction shall be done in accordance with
the pertinent provisions of the ordinances *of
the City.
(c) Minimum Interference.
All transmission lines, equipment and struc-
tures shall be so installed and located as to
cause minimum interference with the rights and
reasonable convenience of property owners and
at all times shall be kept and maintained in a
safe, adequate and substantial condition and
in good order and repair. The Grantee shall.,
at all times, employ ordinary care and shall
install and maintain in use commonly accepted j
methods- and devices for preventing failures j
and accidents which are likely to cause
damage, injuries, or nuisances to the public.
Suitable barricades, flags or other devices !
shall be used at such times and places as are
reasonably required for the safety of all mem-
bers of the public. Any poles or other fix-
tures placed in any public way by the Grantee.
shall be placed in such a manner as not to
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interfere with the usual travel on such public
way.
(d) Restoration of Streets.
Whenever the Grantee shall disturb the surface
of any street, alley, public highway, or
ground for any purpose mentioned herein, it
shall restore the same to the condition in
which it was prior to the opening thereof, and
when any opening is made by the Grantee in any
hard surface pavement in any street, alley or
public highway the Grantee shall promptly
refill the opening and restore the pavement.
The Grantor may refill and/or repave in case i
of neglect of the Grantee. The cost thereof, i
including the cost of inspection and super-
vision, shall be paid by the Grantee. All
excavations made by the Grantee in the
streets, alleys and public highways shall be
properly safeguarded for the prevention of
accidents. The work hereby required shall be
done in strict compliance with the rules,
regulations and ordinances of the Grantor as � .
now or hereafter provided.
(e) Removal of Facilities.
Whenever, in case of fire or other disaster,
it becomes necessary in the judgment of the
Chief of the Police or Fire Department to
remove any of the Grantee's facilities, no
charge shall be made by the Grantee against '
the City for restoration and repair, unless
such acts amount to gross negligence by the
City.
(f) Tree Trimming.
Grantee shall have the authority to trim trees
on public property at its own expense as may
be necessary to protect its wire and facili-
ties, subject to the supervision and direction
of the City. Trimming of trees on private
property shall require written consent of the
property owner.
(g) Improvements by City.
The Grantee at its expense shall protect, sup- i
port, temporarily disconnect, relocate, or
remove any property of Grantee when, in the
opinion of the City, the same is required by
reason of traffic conditions; public safety;
street vacation; freeway or street
construction; change or establishment of i
street grade; installation of sewers, drains,
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I waterpipes, power lines, signal line,
transportation facilities, tracks or any other
types of structures; improvements by govern-
mental agencies, whether acting in a govern-
mental or proprietary capacity or any other
structure or public improvement, including but
not limited to movement of buildings, urban
renewal and redevelopment, and any general
program under which the City shall undertake
to cause all such properties to be located
beneath the surface of the ground. The
Grantee shall in all cases have the privilege,
subject to the corresponding obligations, to
abandon any property of Grantee in place.
Nothing hereunder shall be deemed a taking of
the property of Grantee and Grantee shall be
entitled to no surcharge by reason of anything
hereunder.
(h) Payment Upon Grantee's Failure.
Upon failure of Grantee to commence, pursue or y
complete any work required by law or by the
provisions of this ordinance to be done in any
street, within the time prescribed and to the
satisfaction of the City, the City may, at its
option, cause such work to be done and the
Grantee shall pay to the City the cost thereof
in the itemized amounts reported by the City
to Grantee within thirty (30) days after
receipt of such itemized report, or City may,
at its option, remove said amount from the
security fund as established herein.
(i) Paving Cuts. i
The Grantee shall make no paving cuts or curb
cuts unless absolutely necessary, and only
after written permission has been given by the
City.
(j) Installation In Conduit.
The Grantee shall install in conduit all cable
passing under any public roadway.
(k) Reservations of Street Rights. j
Nothing. in the franchise shall be construed to
prevent the Grantor from constructing sewers,
grading, paving, repairing and/or altering any
street, alley or public highway, or laying
down, repairing or removing water mains or I
constructing or establishing any other public
work. All such work shall be done, insofar as ,
practicable, in such manner as not to
obstruct, injure or prevent the free use and
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operation of the poles, wires, conduits, con- •
ductors, pipes or appurtenances of the
Grantee. If any such property of the Grantee
herein shall interfere with the construction
or repair of any street or public improvement,
whether it be construction, repair or removal
of a sewer or water main, the improvement of a
street or any other public improvement, all
such poles, wires, conduits or other applian-
ces and facilities shall be removed or
replaced in such manner as shall be directed
by the Grantor so that the same shall not
interfere with the said public work of the
Grantor, and such removal or replacement shall
be at the expense of the Grantee herein.
(1) Street Vacation or Abandonment.
I
In the event any street, alley, public highway
or portion thereof used by the Grantee shall
be vacated by the Grantor, or the use thereof
discontinued by the Grantee, during the term
of this franchise, the Grantee shall forthwith
remove his facilities therefrom unless speci-
fically permitted to continue the same, and on i
the removal thereof restore, repair or
reconstruct the street area where such removal .
has occurred, and place the street area where
such removal has occurred in such condition as
may be required by the Grantor. In the event
of failure, neglect or refusal of the Grantee,
after thirty (30) days' notice by the Grantor ;
to repair, improve or maintain such street 1
portion, the Grantor may do such work or cause I
it to be done, and the cost thereof as found
and declared by the Grantor shall be paid by
the Grantee and collection may be made by
court action or otherwise.
(m) Movement of Facilities.
In the event it is necessary temporarily to
move or remove any of the Grantee's wires,
cables, poles, or other facilities placed pur-
suant to the franchise, in order lawfully to ,
move a large object, vehicle, building or
other structure over the streets, alleys or
highways of the Grantor, Grantee upon reaso-
nable notice shall move, at the expense of the
person, except for the City, requesting the
temporary removal , such facilities as may be `
required to facilitate such movements.
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7.11 Construction and Technical Standards.
•
(a) Construction Standards.
f
(1 ) Compliance with Safety Codes. !
All installation of electronic
equipment shall be of a per-
manent nature, durable and
installed in accordance with
the provisions of the National
Electrical Code as amended.
(2) Compliance with Electrical
Co es.
All installation of electronic
equipment shall be of a per-
manent nature, durable and
installed in accordance with
the provisions of the National
Electrical Code as amended.
(3) Antennas and Towers. � .
Antenna supporting structures '
�. (towers) shall be designed for
the proper loading as specified
in Electronics Industry
Association's R.S. 222 C.
Specifications, or any specifi-
cation superceding same.
(4) Compliance with Aviation
e irements, i
Antenna supporting structures
(towers) shall be painted,
lighted, erected and maintained
in accordance with all appli-
cable rules and regulations of
the Federal Aviation
Administration and all other
applicable state or local
codes, laws and regulations. ff
1 .
(5) Construction Standards and I.
Requirements.
All of the Grantee's plant and
equipment, including but not
limited to the antenna site, j
head-end and distribution _
system, towers, house connec-
tions, structures, poles, wire,
cable, coaxial cable, fixtures
and appurtenances shall be
installed, located, erected,
constructed, reconstructed,
replaced, removed, repaired,
maintained and operated in
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accordance with good engi-
neering practices, performed by •
experienced maintenance and
construction personnel so as
not to endanger or interfere
with improvements the municipa-
lity may deem proper to make,
or to interfere in any manner i
with the rights of any property
owner, or to unnecessarily
hinder or obstruct pedestrian J
or vehicular traffic on munici-
pal properties.
(6) Safety, Nuisance Requirements.
The Grantee shall at all times
employ ordinary care and shall
install and maintain in use
commonly accepted methods and
devices preventing failures and
accidents which are likely to
cause damage, injury or
nuisance to the public.
(b) Technical Standards.
The Cable Communications System shall meet all
technical and performance standards contained
in the franchise agreement.
(c) Test and Compliance Procedure.
The Grantee shall submit, within sixty (60)
days after gaining access to rights-of-way, a
detailed test.plan describing the methods and
schedules for testing the Cable Communications
System on an ongoing .basis to determine
compliance with the provisions of the .
franchise agreement. The tests for Basic
Subscriber Television Services shall be per-
formed periodically, at intervals no greater
than every six (6) months, on a minimum of
twenty (20) subscriber television receivers,
locations-shall be At the far end of the
distribution trunk cables. The tests may be
witnessed at the option of Grantor by repre-
sentatives of the Grantor, and written test
reports shall be submitted to the Grantor. If
more than ten percent (10%) of the locations
tested fail to meet the performance standards,
the Grantee shall be required to indicate what
corrective measures have been taken, and the
entire test shall be repeated for at least
twenty (20) different locations. A second
failure of more than ten percent (10%) may
result, at the Grantor's option, in an order
to reduce. subscriber rates due to degraded
service.
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j (d) Special Tests.
At any time after commencement of service to
subscribers the City may require additional
tests, full or partial repeat tests, different �
• test procedures, or tests involving a specific
subscriber's terminal . Requests for such
additional tests will be made on the basis of
complaints received or other evidence indi-
cating an unresolved controversy or signifi-
cant noncompliance, and such tests will be
limited to the particular matter in contro-
versy. The City will endeavor to so arrange
its requests for such special tests so as to
minimize hardship or inconvenience to Grantee
or to the subscriber..
7.12 Areawide Interconnection.
(a) Interconnection Required.
The Grantee shall interconnect origination and
access channels of the Cable Communications
System with any or all other cable systems in
adjacent areas, upon the directive of the
City. Interconnection of systems shall permit
interactive transmission and reception of
program material , and may be done by direct
cable connection, microwave link, satellite,
or other appropriate method.
(b) Interconnection Procedure. I
Upon receiving the directive of the City to . I
interconnect, the Grantee shall immediately
initiate negotiations with the other affected
system or systems. The cost shall be borne by
both Grantees, in proportion to the number of
channels received to total number of channels
transmitted and received, under the assumption
that benefits accrue primarily through receipt
of additional channels.
In the case of regional or statewide intercon-
nection, the same principle shall apply. I .
(c) Relief.
The Grantee may be granted reasonable exten-
sions of time to interconnect or the City may I
rescind its order to interconnect upon peti-
tion by the Grantee to the City. The City may,
grant said request if it finds that the
Grantee has negotiated in good faith and has
failed to obtain an approval from the system
or systems of the proposed interconnection, or
that the cost of the interconnection would
II
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cause an unreasonable or unacceptable increase
in subscriber rates.
(d) Cooperation Required. 4
The Grantee shall cooperate with any intercon-
nection corporation, regional interconnection +
authority or city, county, state and federal
regulatory agency which may be hereafter
established for the purpose of 'regulating,
financing or otherwise providing for the
interconnection' of cable systems beyond the
boundaries of the City.
(e) Initial Technical Requirements to Assure
Future Interconnection Capability.
(1 ) All Cable Communications
Systems receiving franchises to
operate within the City shall
use the standard frequency
allocations for television
signals.
(2) All Cable Communications
Systems are required to use
signal processors at the head-
end for each television signal .
SECTION 8: SERVICE PROVISIONS
8.1 Services to be Provided.
The Grantee shall provide, as a minimum, the ser-
vices listed in the franchise agreement. Services shall not
be reduced nor enlarged without prior approval of the
Grantor.
Should Grantor desire to reduce or enlarge ser-
vices, including premium services, the Grantee shall:
(1 ) File its application to enlarge
or reduce with the City, which
application shall describe the
services to be added or deleted
along with the reason therefor
and the cost thereof ("cost
meaning the direct and indirect'
costs to Grantee of providing
the service to be deleted or
added);
(2) The City shall take up `
Grantee's application and shall
allow or disallow the proposed
action within sixty (60) days.
The City shall, use as its cri-
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teria the affect on rates that
such proposed action would
have, and the nature of the
proposed change as compared to
the affect on rates.
(3) If any programming service
shall have gone out of busi-
ness, no action by Grantee need
be taken.
8.2 Basic Subscriber Television Signal (BSTS) .
The "Basic Subscriber Television Service" shall
include the FCC required services, the distant television
broadcast signals, the imported non-broadcast signals, the
provision of all other cablecast open-channel signals. This
service shall be provided to all subscribers at the
established BSTS subscription rates.
8.3 Basic Subscriber Radio Service.
The "Basic Subscriber Radio Service" shall include
the provision of all audio service designated in the
franchise agreement, including broadcast FM and cablecast FM
signals. This service shall be provided to all subscribers
at the established BSRS monthly subscription rates.
8.4 Institutional Service (.IS) .
The "Institutional Service" shall include the pro-
vision of transmission and/or reception services to institu-
tional users on a leased channel basis at established IS
rates. Services may include the distribution of video or
non-video signals.
8.5 Additional Subscriber Services.
"Additional Subscriber Services," not included in
the BSTS and TSRS services specified above, may be provided
either within the basic subscription rates, or on a premium
basis.
8.6 Local Origination/Government Access/Education
Access/Community Access.
The Grantee shall provide three channels for the
use of the Grantor at no charge to the Grantor, which chan-
nels shall be used for local education needs, public access
needs, governmental needs, or needs whatsoever as determined
by Grantor. The- Grantee may use -said channels when not used
by Grantor, and upon approval of Grantor. Should the enforce-
ment of this ordinance be delegated to an entity under Art. 6
Section 16, and Chap. 70 RSMo, that entity shall be empowered
to contract with a local access channel management entity which
may be authorized by contract to develop, program and otherwise
operate the three channels so provided.
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8.7 New Developments.
(a) Amendment of Franchise.
It shall be the policy of the City to
liberally amend a franchise, upon application
of the Grantee, when necessary to enable the
Grantee to take advantage of any developments
in the field of transmission of television and
radio signals which will afford it an oppor-
tunity more effectively, efficiently or econo-
mically to serve its customers. This section ;
shall not be construed to require the City to
make any amendment or to prohibit it from
authorizing improvement or redesign or a
system without application.
(b) ordering of Improvement.
If the City determines new developments are
appropriate, giving due regard to limitations
In technology and economic reasonableness,
including without limitation the increasing of
channel- capacity, it may by ordinance order
such reasonable improvements or upgrading of
the cable system by the Grantee within a
reasonable time.
8.8 Protection of Subscriber's Privacy.
(a) Use of Data from Subscriber.
A Grantee shall not initiate or use any form,
procedure or device for Procuring information
or data from subscribers terminals by use of
the network, without prior notification to and
approval from each subscriber so affected.
(b) Subscriber Lists.
The Grantee shall not, without prior valid
authorization from each subscriber so
affected, provide any list designating
subscribers' names and addresses to any party.
(c) Subscriber Transmissions.
Grantee shall not permit the installation of
any special terminal equipment in any
subscriber's premises that will permit
transmission from subscriber's premises of
two-way services utilizing audio, visual or
digital signals without first obtaining writ-
ten permission of the subscriber.
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(d) Audit Unimpeded.
No Provision of this Section shall be
construed to impede or prevent any audit
authorized or required by this Chapter.
8.9 Program Alteration.
Except as deletions are required by law, all
programs of broadcasting stations carried by the Grantee
shall be carried in their entirety as received with announ-
cements and advertisements and without additions.
8.10 Obscenity/Pornograph.
No Grantee when engaged in origination cablecasting
as defined by 47 CFR 5(2) , and this ordinance in its basic
services, in its premium services or in any other service,
shall. transmit or permit the transmission of material that is
obscene.
SECTION 9: OPERATION AND MAINTENANCE
9.1 Open Books and Records.
The Grantee shall maintain an office within the
franchise territory, and manage all of its operations in
accordance with a policy of totally open books and records.
The Grantor shall have the right to inspect at any time
during normal business hours, all books, records, maps,
plans, income tax returns, financial statements, service
complaint logs, performance test results 'and other like
materials of the Grantee which relate to the operation of the
franchise. Access to the aforementioned records shall not be
denied by the Grantee on the basis that said records contain
"proprietary" information.
9.2 Reports Required.
The Grantee shall file with the City, on request
and within fifteen (15) days, any of the following:
(a) FCC Form 325.
An "Annual Report of Cable Television Systems"
(FCC Form 325, Schedules 1, 2, 3 and 4) .
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(b) Facilities Report.
An annual total facilities report setting •
forth the physical miles of plant constructed, ' .
rebuilt or in operation during the fiscal
year. Such report shall also contain any
revisions to the system "as built" maps filed
with the City.
i
(c) Subscriber Data.
. i
The Grantee's schedule of charges, contract or
application forms for regular subscriber ser-
vice, policy regarding the processing of
subscriber complaints, delinquent subscriber
disconnect and reconnect, procedures, and any
other terms and conditions adopted as the
Grantee's policy in connection with its
subscribers shall be filed with the City and
conspicuously posted in the Grantee's local
office. All such terms and conditions,
including schedule of charges must be approved
by the City prior to their becoming effective.
(d) Regulatory Agencies and Utility Companies.
All petitions, applications and communications
of all types submitted by Grantee to the
Federal Communications Commission, Securities
and Exchange Commission, or any other Federal
or State regulatory commission or agency
having jurisdiction over any matter affecting
the operation of Grantee's system and any uti-
lity company from which Grantee leases poles,
shall be submitted simultaneously to the City
by delivery to the City Clerk who shall advise
interested City departments of such filing.
Copies of responses from the regulatory agen-
cies and utility companies to the Grantee
shall likewise be furnished simultaneously to
the Grantor.
(e) Performance Bond.
The performance bond or a certified copy
thereof and written evidence of payment of
required premium.
(f) Compliance Bond.
s
The compliance bond or a certified copy I
thereof and written evidence of payment of
required premium.
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(g) Insurance Policies.
jAll policies of insurance or a certified copy
thereof and written notice of payment of
required premium.
(h) Ownership Report.
i
An Ownership Report, indicating all persons
who at any time during the preceding year did
control or benefit from an interest in the
franchise.
(i) Conduct of Business Rules.
All rules, regulations, terms and conditions
which it has adopted for the conduct of its
business.
(j) Technical Measurements.
One (1 ) copy of a report on the system's tech-
nical measurements as set forth herein.
(k) Financial Report.
An annual and certified (by an officer of the
corporation) financial report for the previous
calendar year, including gross revenues from
all sources, gross subscriber revenues from
each category of service, net income and end-
of-year balance sheet for the whole company.
An audited report shall be provided upon
request.,
(1 ) Activities Report.
An annual summary of the previous year's acti-
vities including but not limited to subscriber
totals and new services.
(m) Complaints.
An annual summary of complaints received and
handled; and
(n) Future Plans.
An annual projection of plans for the future.
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9.3 Information Required.
(a) Maintenance of Information.
The Grantee shall at all times maintain:
t .
(1 ) A record of all complaints
received and interruptions or
degradation of service
experienced for the preceding
three (3) years.
(2) A full and complete set of
plans, records and "as-built"
maps showing the exact location
of all Cable Communications
System equipment installed or
in use in the City, exclusive
of subscriber service drops.
(b) . Filing.
When not otherwise prescribed herein, all mat-
ters required to be filed with the City shall
be filed with the City Clerk.
(c) Other Records.
The City may impose reasonable requests for
additional information, records and documents
from time to time.
(d) Inspection of Property and Records.
At all reasonable times, Grantee shall permit
examination by any duly authorized represen.
tative. of the City of all franchise property,
together with any appurtenant property of
Grantee situated within or without the City. .
Grantee shall also permit any duly authorized
representative of the City. to examine and
transcribe any and all maps and other records
kept or maintained by Grantee or under its
control concerning the operations, affairs,
transactions or property of Grantee. If any
of such maps or records are not kept in the
City, or upon reasonable request made
available to the City, and if the City shall
determine that an examination of such maps or
records is necessary or appropriate to the
performance of any of their duties, then all
travel and maintenance expense necessarily
incurred in making such examination shall be
paid by Grantee.
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9.4 Maintenance and Complaints. i
(a) Business Offices.
• i
The Grantee shall maintah appropriate business
offices in the franchise territory which shall '
be open during all usual business hours, have
a publicly listed toll-free telephone and be
so operated to receive subscriber complaints
and requests for repairs or adjustments on a
twenty-four (24) hour basis. A written log
shall be maintained listing all complaints and
their disposition.
(b) Interruptions.
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 a notice and
shall occur during periods of minimum use of
the system. A written log shall be maintained
for all service interruptions.
(c) Repair Force.
The Grantee shall maintain a repair force of
technicians which shall respond to subscriber
complaints or requests for service within
twenty-four (24) hours after receipt of the
complaint or request. No charge shall be made
to the subscriber- for this service.
(d) Information to Subscribers.
The Grantee shall furnish each subscriber at
the time service is installed, written
instructions that clearly set forth proce-
dures, furnish information concerning the pro-
cedures for making inquiries or complaints,
including the name, address and local
telephone number of the employee or employees
or agent to whom such inquiries or complaints
are to be! addressed, and furnish information
concerning the City office responsible for
admi ni strat': of of the franchise with the
address and telephone number of the office.
9.5 Rights of Individuals.
(a) Equal Rights.
Grantee shall not deny service, deny access,
or otherwise discriminate against subscribers,
channel users, or citizens on the basis of
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race, color, religion, natural origin, age or
sex. Grantee shall comply at all times with i
all other applicable federal , state and local •
laws and regulations, and all executive and
administrative orders relating to non-
discrimination which are hereby incorporated
and made part of this ordinance by reference.
(b) Equal Employment.
Grantee shall strictly adhere -to the equal
employment opportunity requirements of the
FCC, and other federal state and local laws
and regulations, as amended from time to time.
(c) Right of Privacy in Transmission.
No signals of a Class IV cable communications
channel shall be transmitted from a subscriber
terminal for purposes of monitoring individual
viewing patterns or practices without the
express written permission of the subscriber.
The request for such permission shall be con-
tained in a separate document with a prominent
statement that the subscriber is authorizing
the permission in full knowledge of its provi-
sion. Such written permission shall be for a
limited period of time not to exceed one (1 )
year, which shall be renewable at the option
of the subscriber. No penalty shall be
invoked for a subscriber's failure to provide
or renew such an authorization. The authori-
zation shall be revocable at any time by the
subscriber without penalty of any kind what-
soever. Such authorization is required for
each type of classification of Class IV cable
television activity planned; provided,
however, that the Grantee shall be entitled to
conduct systemwide or individually addressed
"sweeps" for the purpose of verifying system
integrity, controlling return-path
transmission, or billing for pay services.
(d) Right of Privacy in Subscription.
The Grantee, or any of its agents or
employees, shall not, without the specific
written authorization of the subscriber
involved, sell or otherwise make available to
any party:
(1 ) Lists of the names and
addresses of such subscribers,
or
(2) Any lists which identify the
viewing habits of- individual
subscribers. .
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(e) Fairness of Accessibility.
The entire system of the Grantor shall be
operated in a manner consistent with the prin-
ciples of fairness and equal accessibility of
its facilities, equipment, channels, studios
and other services to all citizens, busi-
nesses, public agencies and other entities
having a legitimate use for the network; and
no one shall be arbitrarily excluded from its
use; allocation of use of said facilities
shall be made according to the rules or deci-
sions of the Grantee and any regulatory agen-
cies affecting the same.
9.6 Continuity of Service Mandatory.
(a) Right to Continuity.
It shall be the right of all subscribers to
continue receiving service insofar as their
financial and other obligations to the Grantee
are honored. In the event that the Grantee
elects to overbuild, rebuild, modify, or sell
the system, or the City gives notice of intent
to terminate or fails to renew this franchise,
the Grantee shall act so as to ensure that all
subscribers receive continuous, uninterrupted
service regardless of the circumstances.
In the event of a change of franchisee, or in
the event a new operator acquires the system,
the Grantee shall -cooperate with the City, new
franchisee or operator in maintaining con-
tinuity- of service to all subscribers. During
such period, Grantee shall be entitled to the
revenues for any period during which it opera-
tes the system, and shall be entitled to
reasonable costs for its services when it no
longer operates the system.
(b) Upon Failure City May Operate.
In the event Grantee fails to operate the
system for seven (7) consecutive days without
prior approval of the City or without just
cause, the City may, at its option, operate•
the system or designate an operator until such
time as Grantee restores service under con-
ditions acceptable to the City or a permanent
operator is selected. If the City is. required
to fulfill this obligation for the Grantee,
the Grantee shall reimburse the City for all
reasonable costs or damages in excess of reve-
nues from the system received by the City.
-55,
9.7 Grantee Rules and Regulations. i
i
The Grantee shall have the authority to promulgate
such rules, regulations, terms and conditions governing the
conduct of its business as shall be reasonably necessary to
enable the Grantee to exercise its rights and perform its
obligations under said franchise, and to assure an unin-
terrupted service to each and all of its customers.
Provided, however, that 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. Such rules, regulations, terms and conditions
shall be submitted to the City for its review and City appro-
val is required prior to their becoming effective.
SECTION 10: RIGHTS RESERVED TO THE GRANTOR
10.1 Right to Purchase the System; Binding Arbitration.
The Grantor may in any lawful manner and upon the
payment of a fair valuation lawfully ascertained purchase,
condemn, acquire, take over and hold the property and plant
and contract rights of the Grantee in whole or in part; if
such purchase or taking over be upon revocation of the
franchise, such valuation shall not include any sum for the
value of ,the franchise under which such plant and property is
being operated.
Upon expiration of the franchise, the Grantor may
in any lawful manner and upon the payment of a fair market
value acquire the property, plant, and contract rights of the
Grantee in whole or in part. If a fair market valuation can-
not be agreed upon by the City and Grantee, then the question
of valuation shall be subject to binding arbitration.
Binding arbitration shall occur upon the option of the City
or the Grantee and there shall be no need to show, or in any
way.demonstrate, that negotiations occurred in good faith.
Binding arbitration shall proceed as follows:
(1 ) Upon written notification of
one party to the other, the
binding arbitration process
shall begin.
(2) Upon notification, both parties
shall have forty-five (45) days
to select an arbitrator; who
shall be knowledgeable in the
CATV industry.
(3) The two arbitrators so selected
shall choose a third arbitra-
tor, and the three (3) arbitra-
tors shall then have one
hundred twenty (120) days to
deliver a written report
establishing a value. The
report may be delivered upon a
majority opinion of the
arbitrators.
-56-
1 •
(4) While the decision of the panel l
or arbitrators on the value of
the system, or portion of the
system, to be acquired shall be
binding, this shall in no way
be construed to require the
City to purchase the system.
(5) If the enforcement of this
ordinance is delegated, the
entity to which enforcement is
delegated shall not proceed to
arbitration without the appro-
val of the City.
10.2 Right of Inspection of Records.
There shall be kept in the Grantor's office a
separate record for the franchise, which record shall show
the information described below in this section. The Grantee
shall provide such information in such form as may be
required by the Grantor for said records.
(a) Costs.
The true and entire cost of construction of
equipment, of maintenance and of the admi-
nistration and operation thereof; the amount
of stock issued, if any; the amount of cash
paid in, the number of par value shares, the
amount and character of indebtedness, if any;
the rate of taxes, the dividends declared; the
character and amount of all fixed charges; the
allowance, if any, for interest, for wear and
tear or depreciation; all amounts and sources
of income.
(b) Collections.
The amount collected annually for the City
treasury and for the local access channel
management entity.
(c) Other Revenues.
The amount collected annually from other users
of service and the character and extent of
service rendered to them.
10.3 Right of Inspection of Construction.
The Grantor shall have the right to inspect all
construction or installation work performed subject to the
provisions of said franchise and to make such tests as it
shall find necessary to ensure compliance with the terms of
-57-•
I
said franchise and other pertinent provision of law, all at
the expense of Grantee. Said costs shall be reasonable.
Before any costs shall be incurred, Grantor shall submit a
budget detailing said costs to Grantee, which shall have fif-
teen (15) days in .which to comment. i
10.4 Right of Intervention. I
The Grantor shall have the right of intervention in
any suit or proceeding to which the Grantee is party, and the
Grantee shall not oppose such intervention by the Grantor.
10.5 Right to Require Removal of Property.
At the expiration of the term for which the
franchise is granted or upon its revocation or expiration,
as provided for herein, the Grantor shall have the right to
require the Grantee to remove, at its own expense, and/or all
portions of the Cable Communications System for all streets
and public ways within the City within a reasonable time, but
not to exceed three (3) months.
SECTION 11 : RIGHTS RESERVED TO THE GRANTEE
11.1 Right of Grantee.
Should the Grantee become dissatisfied with any
material decision or ruling of the Grantor pertaining to
cable communications matters, the Grantee may pursue such
other remedies as are available, including the bringing of
actions in any court of competent Jurisdiction.
SECTION 12: MISCELLANEOUS PROVISIONS
12.1 Compliance with City, State and Federal Laws.
Notwithstanding any other -provisions of this ordi-
nance to the contrary, the Grantee shall at all times comply
with all. laws and regulations of the City, state and federal
government or any administrative agencies thereof. Provided,
however, if any such state or federal law or regulation shall
require the Grantee to perform any service, or shall permit
the Grantee to perform any service, or shall prohibit the
Grantee from performing any service in conflict with the
terms of this franchise or of any law or regulation of the
City, then as soon as possible following knowledge thereof,
the Grantee 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 franchise.
If the City determines that a material- provision of
this ordinance is affected by any subsequent action of the
state or federal government, the City shall have the right to
modify any of the provisions herein to such reasonable extent
as may be necessary to carry out the full intent and purpose
of this agreement.
_58-
12.2 Notices.
All notices from Grantee to the City pursuant to
this franchise shall be to the City Clerk. Grantee shall
maintain with the City, throughout the term of this
franchise, an address for service of notices by mail .
12.3 Public Notice.
Minimum public notice of any public meeting
relating to this franchise shall be by publication at least
once in a newspaper of general circulation in the area at
least ten (10) days prior to the meeting, posting at City ;
Hall, and by announcement on at least two (2) channels of the
Grantee's Cable Communications System between the hours of !
7:00 p.m. and 9:00 p.m. for five (5) consecutive days prior
to the meeting.
12.4 Captions. i
i
The captions to sections throughout this ordinance '
are intended solely to facilitate reading and reference to
the sections and provisions of this ordinance. Such captions !
shall not ,affect the meaning or interpretation of this ordi-
nance.
12.5 No Recourse Against the Grantor.
The Grantee shall have no recourse whatsoever
against the Grantor or its officials, boards, commissions,
agents or employees for any loss, cost, expense, or damage
arising out of any provision or requirement of the franchise
or because of the enforcement of the franchise.
12.6 Non-enforcement by the Grantor.
The Grantee shall not be relieved of its obligation
to comply with any of the provisions of this ordinance or
said franchise by reason of any single or repeated failure of
the Grantor to enforce compliance.
12.7 Liquidated Damages Chargeable Against Grantee.
Upon a finding by the City, after reasonable notice
to the Grantee, that the Grantee has failed to timely comply
with any requirements of this ordinance and that such failure
was not due to conditions beyond Grantee's control , the City
shall charge Grantee Five Hundred Dollars ($500.00) per day
for each day or part thereof, the deficiency continues.
Liouidated damages so charged are not in lieu of other dama-
ges that might be recoverable from Grantee.
12.8 Theft of Services and Tampering.
(a) Violation.
No person, whether or not a subscriber to the
cable system may intentionally or knowingly
damage or cause to be damaged any wire, cable,
conduit, equipment or apparatus of Grantee, or
• commit any act with intent to cause such
-59-
` a I
damage, or to tap, tamper with or otherwise
connect any wire or device to a wire, cable,
conduit, equipment and apparatus or appur-
tenances of Grantee with the intent to obtain I
a signal or impulse from the cable system
without authorization from Grantee and compen-
sation (at Grantee's option) to the Grantee,
or to obtain cable television or other com-
munications service with intent to cheat or
defraud Grantee of any lawful charge to which
it is entitled.
(b) Punishment.
Any person convicted of violating any provi-
sion of this section- is subject to a fine of
not more than Five Hundred Dollars ($500.00)
for each offense or imprisonment of not more
than ninety (90) days or both such fine and
Imprisonment. Each day's violation of this
section shall be considered a separate
offense.
12.9 Subsequent Action By State or Federal Agencies.
Should the State of Missouri, the FCC or any other
agency of the Federal government subsequently require the
Grantee to deliver any signals in addition to those required
by this franchise, or to perform any act which is incon-
sistent with any provisions of the franchise, the Grantee
shall so notify the Grantor. Upon receipt of such notifica-
tion, the Grantor shall determine if a material provision of
the franchise is affected. Upon 'such determination, the
Grantor shall have the right to modify or amend any of the
sections of the franchise to such reasonable extent as may. be
necessary to carry out the full intent and purpose of the
franchise. The Grantor may terminate the franchise in the
event the Grantor determines that substantial and material
compliance with the original proposed terms of the franchise
has been frustrated by such state or federal requirement.
SECTION 13: GUARANTEE OF PARENT(S)
13.1 Obligation.
Any franchise given to a subsidiary of a cor-
poration, either wholly owned or controlled, shall be
guaranteed by the parent or controlling corporation. Said
guarantee by the parent or controlling corporation shall
guarantee faithful performance of all the terms of said
franchise, and the payment of all damages, costs and expenses
which by virtue of the franchise might become recoverable by
the City from the Grantee.
-60-
• J
10
4 13.2 Terms of Guarantee.
This guarantee shall continue throughout the term •
of the franchise; and the Grantee (the said parent or y
controlling corporation) shall not be released of its obliga-
tion so long as any claim of the City against the Grantee
arising out of the foregoing franchise is not settled or
discharged in full .
13.3 Benefit.
The guarantee shall inure to the benefit of the
City or its assigns, and shall, be binding upon the Grantee
and its successors or assigns.
13.4 Other Ownership.
If an entity to which a franchise is awarded is
owned or controlled by something other than a corporation(s),
the City shall have full authority to require 'appropriate
guarantee from any individual , partnership, association,
organization or any lawful successor, transferee or assignee,
as the City deems necessary to protect the public interest.
This authority shall likewise exist if the entity to which a
franchise has been awarded is controlled or owned by a com-
bination of corporation(s) and any entities herein. listed.
SECTION 14: ACCEPTANCE
Any ordinance awarding a franchise to a specific company
and this ordinance shall be accepted by the Grantee- by writ-
' ten instrument executed and acknowledged by it as a deed is
required to be filed with the City Clerk within fifteen (15)
days after notification of the passage of the ordinance
awarding a franchise. Such written instrument shall state
and express the acceptance of this ordinance and the ordi-
nance awarding a franchise and their terms, conditions and
provisions; and said Grantee shall agree in said instrument
to abide by to observe a-nd perform. same, and declare that
statements and recitals therein are correct and that it has
made and does make the agreements, statements and admissions
in the ordinances recited to have been or to be made.
SECTION IS: SEVERABILITY
If any section, subsection, 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 portions hereof.
SECTION 16: EFFECTIVE DATE
This ordinance shall be in full force and effect after
-61-
• i
its passage and approval .
PASSED AND APPROVED THIS _6f---DAY OF 1982. .
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and practice of this company to microfilm it's records for permanent file and
to dispose of the original records after microfilm reproductions have been
made and assigned to the company files.
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Rochester, NY 14650
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COUNTY: COLE _
OFFICE: CITY OF JEFFERSON
TITLE OF RECORD: ORDINANCES
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CERTIFICATION
I, the undersigned, an employee of Custom. Imaging Service, L.L.C. do
hereby certify that the microfilm images on this reel of microfilm (Reel
N0,,,, are complete and accurate reproductions of the
original records of City of Jefferson as
accumulated during the regular business, and that it is the established policy
and practice of this company to microfilm it's records for permanent file and
to dispose of the original records after microfhn reproductions have been
Made and assigned to the company files.
Name
Title Date
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Title Date .
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