HomeMy Public PortalAboutOrd. 1286
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ORDINANCE N0. 1286
AN OPDINANCE OF TEE CITY COUNCIL
OF THE CITY OF LYNWOOD AMENDING
ORDINANCE NOS. 1274, 1253, 1149 AND
1134 WEICE GRANTED AItD ESTA3LISX_F.D
TERMS FOR A CABLE TELEVISION
FRANCHISE
TEE CITY COUNCIL OF TEE CITY OF LY1v'Tv00D DOES ORDAIN AS
FOLLOWS:
SECTIOtd 1. Recitals. The City Council of the City of
Lynwood finds, determines and declares:
(a) The City Council previously enacted Ordinance
No. 1134, which granted a non-exclusive franchise for a
cable television system in the City to California
Cablesystems, Inc.; and
(b) The said Ordinance No. 1134 was subseouently
amended by Ordinances Nos. 1149, 1253 and 1274, which
modified the initial terms and conditions of the
franchise; and
(c) As the result of negctiations based upon
actual operating results as well as future projections,
the City of Lynwood desires to continue amendments
to the Franchise terms and conditions in an effort to
insure the future viability of cable service for the
residents of the City.
SECTION 2. Section 5.5 of Ordinance No.-1134 "Faithful
Performance Bond" is hereby amended to read as follows:
"5.5 Faithful Performance Bond. Upon the.
effective date of the Franchise, as amended, Grantee
shall furnish proof of the posting of a faithful
performance bond, which may be a corporate surety bond,
running to the Grantor, in the penal sum of $150,000.
The faithful performance bond shall be in a form
approved by the City Attorney. Upon demonstration by
Grantee to the satisfaction of Grantor, pursuant to the
procedure that follows, that all the construction to be
undertaken in the City pursuant to the Franchise
Agreement has in fact been completed and the system is
fully operational, the bond shall be reduced to a sum of
$60,000. Such bond for a sum of $60,000 shall be
maintained by the Grantee throughout the term of this
Franchise.
As prerequisites to the reduction of the
performance bond to-$60,000, Grantee shall demonstrate
to the reasonable satisfaction of Grantor that:
(a) Good faith efforts have been made to obtain
owner permission for the wiring of all multiple units
in the City; and
(b) A11 multiple units, for which permission to
enter and wire has been obtained, have been wired; and
(c) Within 90 days all governmental buildings for
which service has been requested will be provided cable
drops and service per the Grantee's franchise proposal.
A11 governmental buildings will be provided service
within 90 days of request for such service; and
(d) All residential
units for which the owner
enter and wire, are capab
Where Grantee claims that
control delay or prohibit
homes, it shall present a
of service to these homes
performance bond; and
units, other than multiple
has not granted permission to
1e of receiving cable service.
circumstances beyond its
service to isolated pockets of
specific plan for the offering
prior to any reduction in the
SECTION 3. Section 7.4 of Ordinance No. 1134 is hereby
amended to read as follows:
"7.44 Capacity for Interactive Residential
Services. Grantee shall provide, in the initial system
configuration, the capacity for interactive residential
services including, but not limited to, security alarm
monitoring, home shopping, energy management, home
banking, teletext, information access and retrieval,
subscriber polling, video games and one-way or
interactive education. A11 customer equipment necessary
for such services, such as addressable interactive
converters, home terminals and home detectors, shall he
provided to subscribers by Grantee in accordance with
established and uniform rate schedules.
Grantee shall not be required to activate the
interactive residential capability until December 24,
1987. At that time, Grantor may continue to delay the
activation of interactive services if it determines that
activation is not technically or economically feasible.
If Grantor determines that activation of interactive
services is both technically and economically feasible,
it may require activation after December 24, 1487."
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SECTION 4. Section 7.5 of Ordinance No. 1134 is hereby
amended to read as follows:
"7.5 Capacity for Institutional Services. Grantee
shall provide, in the initial system configuration, the
capacity for one-way and interactive institutional
communications services including, but not limited to,
video, voice and data communications. The system shall
have the capacity to provide a full range of channeliza-
tion and multiplexing options to meet the needs of the
broadest spectrum of institutional users. The system
shall provide all features reasonably necessary to
maintain message privacy and security, which may
include, but is not limited to, addressable taps and
converters, data encryption and signal scrambling.
Grantee shall provide and maintain all Grantee
provided customers-premises equipment necessary to
interface with the cable communications systems at a
cost to be determined by Grantee. Equipment
commercially available and not directly linked to the
cable system, such as data terminals, video cameras and
microphones, may be supplied by Grantee or, provided no
harm is caused or results to the cable communications
system, by the cable system user..
Grantee shall not be required to activate the
institutional services, nor build the institutional
network until December 24, 1987. At that time, Grantor
may require construction and activation of the
originally proposed network or acceptable alternatives
if it determines that the construction and operation of
an institutional network are technically and
economically feasible as well as in accordance with the
regulations of the Public Utilities Commission and the
Federal Communications Commission. When Grantor reviews
the economic and technical•feasibility of the
institutional network, it shall give due consideration
to any alternative proposals Grantee may wish to make
for delivery of institutional services, including, but
not limited to, the delivery of these services on the
residential network. Grantor may also continue tc
authorize delay in construction of the institutional
network if it determines that such delay is warranted
due to a•lack of technical or economic feasibility.".
SECTION 5. Section 5 of Ordinance No. 1134 is amended
by adding a new Section 5.10 to read as follows:
"5.10 Periodic Reports. During such time as
Grantor allows Grantee to reduce its support for local
programming pursuant to Section 9.2(e) hereof, or to
defer construction of a single trunk institutional
network and/or provision of activiated bidirectional
communications on the residential network, Grantor shall
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have the right to require Grantee to provide additional
information. At a minimum, Grantee shall provide to
Grantor:
(a) Grantee shall submit within four months of the
close of every one of its fiscal years, an annual report
to Grantor. Said report shall include an audited
financial statement of Rogers Cablesystems of
California, Inc. Said report shall also include
financial statements cf the system serving Downey,
Paramount, Lynwood and Santa Fe .Springs. The local
system financials need .not be audited but shall be
prepared by the same accounting firm which prepares the
audited financial statements for Rogers Cablesystems of
California, Inc."
SECTION 6. Until December 31, 1987, Section 9.2 of
Ordinance No. 1134 is suspended and replaced in the interim
with the following language:
"9.2 Grantee Support for Local Programming.
Grantee shall provide support for local programming, as
a minimum:
(a) Reasonable, scheduled use of all cablecasting
access facilities by non-commercial, tax-exempt
-organizations at no charge.
(b) Payment to Grantor or a non-profit corporation
to be designated by Grantor the total sum of 4% of
Grantee's gross revenues received and attributable to
Lynwood in calendar year 1986, plus the sum of
$20,000.
4% of gross revenues
+ $20,000
= Total Due Grantor
Said sum shall be paid at the time the Mayor signs this
Ordinance acknowledeine its adoption.
This represents a temporary reduction in Grantee's
local programming support payments, pursuant to Section
9.2 hereof, otherwise due for 1987. Said funds are
specifically provided in full satisfaction of capital
and operating requirements for local programming for the
calendar year 1987. Unless the Grantor and Grantee
agree on an extension of these revised franchise terms,
Section 9.2 as adopted by Ordinance No. 1134 shall again
become effective January 1, 1988.
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SECTION 7. This Ordinance amending and adding to
Urdinance.1134 of the City of Lynwood is enacted in light of
the current financial situation of the Grantee, Rogers Cable-
systems of Califonria, Inc., and in reliance on the integrity
and ability of its parent Rogers U.S. Cablesystems, Iac. to
perform pursuant to this Ordinance. Accordingly, this
Ordinance may be immediately repealed, at Grantor's option,
should Grantee assign its rights, duties and obligations
under the Franchise to any other person or entity. Assign-
ment shall be deemed to include, but not be limited to, (1)
the transfer or sale of any stock of Grantee from Rogers U.S.
Cablesystems, Inc. to any third party, (2) the assignment of
the assets of Grantee, including this Franchise, to any third
party, or (3) the merger, dissolution, consolidation, or
other reorganization of Grantee, including the creation of
any limited partnership. Grantor acknowledges that the sale
Df Rogers U.S. Cablesystems, Inc. stock to Rogers Cable-
systems of America shall not result in repeal of this
Ordinance.
SECTION 8. The Federal "Cable Communications Policy Act
of 1984" contains several provisions treating cable
television system franchises in effect on the date of the
Federal Act differently than franchises granted after the
Federal Act. By enacting this Ordinance, which amends and
adds to Ordinance 1134 of the City of Lynwood, neither
Grantor nor Grantee intend that the Franchise be construed as
a new Franchise outside of the scope of the "grandfather"
clauses of the Federal Act.
SECTION 9. The Grantee and its Parent Corporation
shall, within sixty (60) days after passage of this
Ordinance, file in the office of the City Clerk a written
acceptance of this Ordinance executed by Grantee and its
Parent Corporation, in a form approved by the City Attorney.
The Parent Corporation, by executing and filing the
Acceptance, guarantees performance by Grantee of all
Grantee's obligations hereunder and agrees to perform those
obligations and Grantee's behalf, if so ordered by Grantor,
in the event Grantee for any reason which is within its
control or reasonably foreseeable fails to perform them. The
Acceptance shall include a provision stating that the Grantee
and its Parent Corporation recognize that this Ordinance does
not affect the status of the Franchise as a preexisting
franchise within the meaning of the Federal "Cable
Communications Policy Act of 1984" and further stating that
the Grantee and its Parent Corporation shall not contend .
otherwise in anY judicial or administrative proceeding.
Failure of Grantee and its Parent Corporation to accep*_ the
Franchise as provided herein shall cause this Ordinance to
become nu 11 and void.
SECTION 10. The City Clerk shall certify to the
adoption of this Ordinance and cause the same to be processed
in the manner required by law.
first read at a regular meeting in the City Council
of said City held on the 3rd- day of March 1987, and
finally adopted and ordered published at a regular meeting
of said Council held on the 17th day of March 1987.
AYES: COlJNCILPERSONS BYORK,-HENNING, MORRIS, WELLS., RICI-IARDS
NOES: NONE ~~~~-
ABSENT: NONE .'i!f ,-~" ~_~
PAUL II. RI CI-IARllS, Mayor
City of Lynwood
A F.ST:
~( / ~
ANDREA L. HOOPER, City C r~
City of Lynwood
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
City Attorne Charles Comez, Ci an
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, A
STATE OF CALIFORNIA )
ss.
COUNTY OF LOS ANGELES ).
I, he undersigned, City Clerk of the City of
Lynwood, and ex-officio clerk of the Council of said City,
do hereby certify that the above is a true and correct copy
of Ordinance No, 1286 adopted by the City Council of the
City of Lynwood, and that the same was passed on the date
and by the vote therein stated.
DATED this 18th day of March ~ 19 ~_
C/ " /
City erx '
City of Lynwood