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
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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.
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(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."
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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