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HomeMy Public PortalAboutOrd. 1149ORDINANCE N0. 1149 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING ORDINANCE N0. 1134 WHICH GRANTED A NON-EXCLUSIVE CABLE TELEVISION FRANCHISE TO CALIFORNIA CABLESYSTEMS, INC. THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES ORDAIN AS FOLLOWS: SECTION 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 Cable- systems, Inc.; and (b) That, pursuant to Section 3.5(a) of said ordinance, the City of Lynwood has elected to renegotiate to obtain certain terms and conditions which the City Council deems more beneficial to the citizens of Lynwood; and (c) That the following amendments to the franchise ordinance accurately reflect the revised agreement based upon the renegotiation authorized by Section 3.5(a) of the franchise ordinance. SECTION 2. Section 5.3 of Ordinance No. 1134 is hereby amended to read as follows: "5.3 Advance on Franchise Fees. Within thirty (30) days o t e e ective ate of the Franchise, as amended, Grantee shall initiate a one-time fran- chise fee payment to Grantor of $392,080. This payment is to be considered an advance of payments due in later years and shall be credited as fran- chise fees become due. Such advance fee shall be expended first for regulatory costs, and shall not be recoverable from the Grantor in the event that the aggregate of future franchise fees does not exceed the total amount of the advance." SECTION 3. Section 5.4 of Ordinance No. 1134 is hereby amended to read as follows: "5.4 Letter of Credit. Within thirty (30) days of the effective date of the Franchise, as amended, Grantee shall deliver to Grantor an irrevocable and unconditional letter of credit in form and substance acceptable to Grantor, from a bank approved by Grantor in the amount of $50,000. Such a letter shall be maintained on deposit throughout the term of this Franchise. The use of the letter of credit by Grantor to satisfy any penalties shall be in full compliance with the provisions of Sec- tions 6.3, 12.4 and 17 of this Ordinance." SECTION 4. Section 5.5 of Ordinance No. 1134 is hereby amended to read as follows: "5.5 Faithful Performance Bond. Upon the effec- tive ate o 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 $300,000. The faithful performance bond shall be in a form approved by the City Attorney. Upon demonstration by Grantee to the satisfaction of Grantor 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." SECTION 5. Section 7.4 of Ordinance No. 1134 is hereby amended to read as follows: "7.4 Ca acit for Interactive Residential Services. Grantee s a prove e, in t e 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. All customer equipment necessary for such services, such as addressable interactive converters, home terminals and home detectors, shall be provided to subscribers by Grantee in accordance with established and uniform rate schedules. In no interactive three years ordinance." event shall Grantee activate the capability of the system later than after the effective date of the SECTION 6. Section 7.5 of Ordinance No. 1134 is hereby amend~o read as follows: "7.5 Ca acit for Institutional Services. Grantee shall prove e, in t e initia system con figuration, the capacity for one-way and interactive 2 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 channelization 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 customer-premises equipment necessary to interface with the cable communications system 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. In no event shall Grantee activate the institutional network later than three years after the effective date of the ordinance." SECTION 7. Section 9.1 of Ordinance No. 1134 is hereby amencTed to read as follows: "9.1 Findings and Determinations Regarding Local Programming. (a) The City Council hereby finds and determines that the public interest in community access programming and local program development necessitates the utilization of a nonprofit corporation to be designated by Grantor to fund and oversee community access programming and local program development, and other reasonably related programs and functions. The City Council further finds and determines that the use of such a nonprofit corporation funded in whole or in part by Grantee will allow funding decisions to be made in the best interests of the public, taking into account developing needs and technological advances. (b) The City Council finds and determines that the public interest in a fair and just apportionment of the use of the public access and community channels necessitates the creation of a Community Access Corporation. 3 (c) The City Council further finds and determines that the public interest in optimal use of the cable television system is a partial basis for the payment required of Grantee by Section 9.2(d). (d) The City Council hereby finds and determines that tying the payment required by Section 9.2(d) to gross revenues is necessary to protect the value of Grantee's programming support commitment from the pressures of inflation. (e) The City Council hereby finds that not less than $74,750 of the payments required by Section 9.2(d) should be allocated for use in schools, to enhance educational use of the system. Said total amount of $74,750 shall be allocated for such use at the rate of $37,375 from each of the first two payments to the designated nonprofit corporation." SECTION 8. Section 9.2 of Ordinance No. 1134 is hereby amend~ead as follows: "9.2 Grantee Support for Local Programming. Grantee shall prove e t e o~~wing or equivalent support for local programming, as a minimum: (a) Reasonable use of all cablecasting access facilities and channels by non-commercial, tax exempt organizations at no charge. (b) Reasonable and nondiscriminatory use of Grantee's local origination facilities, when available, by non-commercial, tax exempt organizations at no charge. (c) The provision of local origination staff per the Grantee's Franchise Application except as modified herein and as modified by the Franchise Agreement. (d) Payment to a nonprofit corporation to be designated by Grantor of a minimum of $117,624 per year in full performance of its capital and operating proposals for community access programming, local origination and capital and operating proposals for schools contained in Grantee's Franchise Application. Payment shall be made at said level for the first 4 years of the Franchise and thereafter the payment shall be the greater of $117,624 or 4% of gross annual revenues. Payment shall be made in accordance with the payment schedule included in the Franchise Agreement." 4 SECTION 9. Section 10.8 of Ordinance No. 1134 is hereby amended to read as follows: "10.8 Maintenance of Initial Rates. Grantee shall not increase the initia rates or a period of two (2) years from the effective date of the Franchise. The maintenance of initial rates shall include Pay- Television Services rates, and Grantee shall not utilize FCC or other preemption of Pay-Cable rate regulation to increase such rates prior to the expiration of the period above. Upon the expira- tion of said two (2) year period, those rates and charges for those services for which rate regula- tion is not preempted by the FCC shall be subject to regulation by Grantor. Rates relating to adver- tising or the institutional network services pro- vided to commercial subscribers shall be exempt from rate regulation." SECTION 10. The City Clerk shall certify to the adoption o t is or finance and cause the same to be processed as required by law. PASSED, APPROVED and ADOPTED this 5th day of January ~ 198 2. ~ ~ i~~~~~ z- Nl Y~ ATTEST: ~--1 " CITY CLERKf APPROVED AS TO FORN: C Y ATTO NEY APPROVED AS TO CONTENT: ~~ CITY f~IANAGER ACTING 5 SPATE OF' CALIFORNIA } ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City cf Lynwood, and ex-officio clerk of the Council of said C:~ty, do hereby certify that the above is a true and correct copy of Ordinance No. 1149 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 ti7is 6th day of Janixary _, 19 82 . Cyr., ,~_~,:~ ~ ~„~-, C~itp Cleric, City of Lyn~o~d (SEAL) AYES: Councilmen Green, Morris, Thompson, Byork NOES: Councilman Rowe ABSENT: None