HomeMy Public PortalAboutResolution 80-1911RESOLUTION NO. 80 -1911
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMPLE CITY AWARDING TO FALCON COMMUNICATIONS A
FIFTEEN (15) YEAR NON - EXCLUSIVE FRANCHISE TO
CONSTRUCT, OWN, OPERATE AND MAINTAIN A COMMUNITY
ANTENNA TELEVISION SYSTEM WITHIN THE CITY OF TEMPLE
CITY CALIFORNIA; SETTING FORTH CONDITIONS
ACCOMPANYING THE GRANTING OF SAID FRANCHISE;
PROVIDING FOR CITY REGULATION AND USE OF THE
COMMUNITY ANTENNA TELEVISION SYSTEM; PRESCRIBING
PENALTIES FOR VIOLATION OF THE RESOLUTION AS
PROVIDED FOR IN ORDINANCE NO. 80 -492 ADOPTED BY THE
CITY COUNCIL OF THE CITY OF TEMPLE CITY THE 18th DAY
OF MARCH, 1980.
THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES
RESOLVE AS FOLLOWS:
CONTENTS
SECTION 1 - Purpose and Intent 2
2 - Grant of Non - Exclusive Franchise . 2
3 - Nature and Extent of Grant 3
4 - Designation of Service Area • • • • 3
5 - Duration of Grant 3
6 - Rates and Charges 4
7 - Time of Construction . • • • • • • 6
8 - Progress Reports and
Channel Broadcasting 7
9 - Services to the City 7
10 - Establishment and Extension
of Service 9
11 - Separability and Severability 10
12 - Time of Essence 10
13 - Attorneys Fees 10
14 - Compliance with All Laws 11
15 - Relocation 11
16 - Effective Date 11
.SECT_ION 1. PURPOSE AND INTENT
This Resolution is enacted pursuant to the authority
provided in, and subject to all the, provisions,
terms, and conditions of Part C, Chapter 3 of
Article VI of the Temple City Municipal Code as
adopted in Ordinance No. 80 -492. It is the purpose
and intent of this Resolution for the City of Temple
City (hereinafter "City ") to grant a non- exclusive
franchise to engage in the business of operating a
Cable Television System within the corporate limits
of the City of Temple City to Falcon Communications
(hereinafter, "Grantee" aka "Cable Operator ").
SECTION 2. GRANT OF NON- EXCLUSIVE FRANCHISE
1. A non - exclusive franchise to construct, operate,
and maintain a cable television System within the
City of Temple City for a term of 15 years from the
effective date hereof as provided in Ordinance No.
80 -492, unless sooner terminated, is hereby granted
to Falcon Communications, a partnership between
FalproCorporation, a New York Corporation, Advance
Corporation, a Montana Corporation, and Blackhawk
Communications Corporation, a California corpora-
tion, hereinafter referred to as Grantee with all
the rights and privileges and subject to each and
all of the terms apd conditions of said Chapter 3,
and Grantee's proposal dated November 12, 1979, as
supplemented by documents dated March 10, 1980 .
except as modified herein. Provisions of this
Resolution shall be construed in accordance with
Ordinance No. 80 -492 of the City of Temple City
which is incorporated herein by this reference and
in the event of irreconcilable conflict between this
Resolution and Ordinance No. 80 -492 of the City of
Temple City, this Resolution shall prevail.
2. Except as specifically modified herein, the fran-
chise granted hereby shall be subject to all of the
provisions of the following documents, each of which
shall be deemed to be incorporated by reference as
though at this point set forth in full:
(a) Ordinance No. 80 -492 of the City of Temple
City;
(b) Grantee's proposal dated November 12, 1979,
and supplemental documents dated March 10,
1980, all of which documents have been date
stamped and initialed "KLK" and "CRM ", except
as modified herein;
(c) The financial, security and insurance docu-
ments required by this Resolution, which when
approved will be date stamped and initialed
"KLK and CRM ".
3. It is understood that the incorporated documents
contain rights, duties and limitations in excess of
those set forth in this Resolution, and failure to
mention herein any particular item in such
incorporated documents shall not be construed as a
waiver thereof. Only in the event of irreconcilable
conflict shall the provisions of this Resolution
prevail.
4. Grantee shall at all times inform City of any change
in more than 30 percent of the ownership or
management of Grantee whether by sale, proxy,
hypothecation or other means, each of which shall be
subject to the prior consent of City. City consent
shall not be unreasonably withheld. City's decision
shall be reviewable only under CCP 1085, not CCP
1094.5.
SECTION 3.* NATURE AND EXTENT OF GRANT
The non- exclusive franchise granted by this Resolu-
tion to Grantee constitutes authority to use the
public streets, other public, rights -of -way or
public places in the city, to engage in the business
of operating a Cable Television System within the
area described in Section 4 of this Resolution
subject to all of the terms and conditions contained
in this Resolution and Ordinance No. 80 -492,
Pursuant to such authority, until lawfully revoked,
Grantee may construct, maintain and operate wires,
cables, poles, conduits, manholes and other televi-
sion conductors and equipment necessary for the
maintenance and operation of a Cable Television
System as may be authorized by the City and involved
utilities.
SECTION 4. DESIGNATION OF SERVICE AREA
The service area of this Resolution includes all
areas within the corporate limits of the City of
Temple City (and any areas which may be annexed by
the City of Temple City, unless any existing cable
television franchise is already in force and effect
with regard thereto).
SECTION 5. DURATION OF GRANT
The franchise shall become effective on passage of
this Resolution, provided, however, that this
Resolution shall not become effective for any
purpose whatsoever, unless on or before July 1,
1980, or within such extended period of time as the
Council in its sole discretion may authorize, the
Grantee shall file with the City Clerk:
(a) A written acceptance to be bound by and comply
with and to do all things required by this
Resolution in form. satisfactory to the City
Attorney of the City.
(b) All bonds and insurance policies required by
Ordinance No. 80 -492 of the City of Temple
City shall be filed and thereafter maintained
in full force and effect. In addition to any
other bonds or insurance policies required in
Ordinance No. 80 -492, Grantee shall secure and
file with the City Clerk a -Construction
Completion Bond in the amount of $1,000,000.00
or such lesser amount as the City Council may
hereafter determine. Said bond shall be
exonerated upon completion as designated
herein.
(c) A certified Resolution by the General Partners
of Grantee jointly and severally as general
partners, guaranteeing performance by Grantee
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hereunder by the allocation and committment of
$2,000,000.00 of all funds available to such
partners exclusively for the completion and
construction of the Temple City Cable Televi-
sion System by Grantee should such funds be
necessary to complete construction. Such
guarantee is to be in a form satisfactory to
the City Attorney of the City. Construction
shall mean costs and operating expenses
related to the delivery of cable signals to the
Temple City Cable Television System and the
expenditure of the proportionate share of the
costs of providing the head -end into the Temple
City Cable Television System.
Construction shall be deemed completed when
all residential dwelling units and commercial
and industrial developments are passed by and
immediately available to energized cable
television connection facilities pursuant to
the requirements of this Resolution. Upon
completion of construction the guarantee
referred to herein shall be finally satisfied,
fulfilled and otherwise fully discharged.
(d) Written evidence in form satisfactory to the
City Attorney of the City, that Grantee has
secured certificates of deposits in the sum
of $500,000.00 drawn in favor of Grantee and
providing that all interest accruing shall be
paid to Falcon Communications. Certificates
of deposit in-the amount of $450,000.00 are to
be deposited in the Temple City branch of
Continental Bank and $50,000.00 shall be
deposited as a certificate of deposit at the
First National Bank of Boston, as compensating
balance for the funds drawn down from Grantee's
existing line of credit with the First National
Bank of Boston. Said certificates are not to
be drawn down by Grantee until Grantee shall
have first expended $500,000.00 for the
construction and operation of the Temple City
Cable Television System. After Grantee has
first expended $500,000.00 in construction or
operation of said System, within the City of
Temple City it may then draw down the
certificates of deposit upon the joint signa-
ture of City and Grantee for the construction
and operation of the System within the City of
Temple City. Should the System be constructed
in full before Falcon completely draws down the
certificates of deposit for said purpose,
Falcon may then use said certificates as it
sees fit and City will release the same.
(e) Failure to file each and every and all of such
documents in acceptable form shall be deemed a
default and shall free City of all obligations.
hereunder.
SECTION 6. RATES AND CHARGES
The rates and fees and charges shall be as provided
in Section VII of Grantee's proposal as follows:
(a) The Grantee shall be responsible for providing
a complete list of options, with their. related
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costs to each subscriber before the subscriber
contracts for service.
(b) Schedule of Rates and Charges
1. Cost of Connection (Installation):
A(1) The total costs to the customer of CATV for
connection for "regular" service shall be: $20.00.
There will be a refundable converter deposit
(asssuming converter is returned in good working
condition, normal wear and tear excepted) of
$30.00. There will be an additional charge if the
customer desires a converter with remote control.
A(2) The total costs to the customer for pay TV
installation shall be: $15.00. There will be a
refundable converter deposit (assuming converter is
returned in good working condition, normal wear and
tear excepted) of $30.00. There will be no charge
for pay TV installation, if installed at same time
as regular or expanded service. However, there will
be a converter deposit if it is a separate
converter.
B. The installation charge for additional outlets
at time of installation including FM, excluding
commercial installation, shall be: $7.00 each.
C. To move an outlet after the initial installation
at the same service addresss, the charge shall be:
$10.00.
D. To reconnect after the service has been
discontinued for lack of payment, for new owner
where service exists, or for temporary disconnec-
tion, the charge shall be: $12.00. If cable
operator has to go to customer's home to collect a
bad debt over sixty days past due, there will be a
collection fee of $5.00.
E. Cable operator shall extend cable television
services to any residential structures at the
standard rate listed above, if the resident requests
the service extension and the service connection
requires no more than a standard one hundred fifty
(150) foot overhead drop line except as provided in
"G" below.
F. Underground installation and non - standard
overhead installation shall be at cost of material
and labor plus 10 percent.
G. Cable operator shall extend cable television
services to any existing development or group of
multiple residence structures (five or more
dwelling units) at standard rates and if the
development requires standard overhead installation
provided that the existing development or group of
residences to be served has a density of at least
one hundred (100) residences per standard mile of
trunk line cable installed, and thirty -five percent
(35 %) of the residences within the development or
group of residences to be serviced request service
and are contiguous to existing service area. Any
development or group of residences not meeting the
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above requirements may be serviced at cost of
material and labor plus 10 percent.
H. Cable operator shall extend energized cable, or
conduit, to all new residential developments
requiring City discretionary approval as they are
constructed, provided that the cost of trenching,
back filling necessary, including furnishing of any
imported back fill material required, and any
necessary distribution conduit, pedestals, and /or
vaults and laterals as well as easements required to
bring service to and within the development are
borne by the developer and /or land owner, and
provided that all installations and construction by
the developer and /or land owner are to the
specifications of the cable operator.
2. Monthly Service Charge for Cable Service Paid
Monthly in Advance
A. ' Primary regular cable service $8.25
B. Per additional outlet for regular
cable $2.50
C. Additional remote control unit $1.25
(Grantee may reduce but not increase such
rates.)
3. Primary Monthly Service Charge for Pay Cable
Service
A. Pay TV --Option 1
(Z Channel or similar service) $10.50
B. Pay TV - Option 2
(Home Box Office or similar
service)
C. Pay TV - Option 3
(Galavision or Similar Service)
$9.00
$8.00
D. Pay TV - Option 4
(Asian language channel or similar
service) $8.00
E. Additional outlets for pay TV services
shall cost the same as the primary service due
to contractual obligations with program sup-
pliers.
(c) None of the above rates shall be increased for
two (2) years after completion of construc-
tion, but Grantee may reduce such rates.
SECTION 7. TIME OF CONSTRUCTION
All permits for construction of the System shall be
obtained by Grantee and energized cable and service
shall be provided in the areas delineated in
Grantee's proposal, within the following time
periods after the effective date of granting of the
franchise:
A. 75 percent of the entire cable System will be
completed within 12 month!.; from the date of the
first authorization from the utility company
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to the franchisee allowing for pole attach-
ment.
B. The remaining 25 percent of the System is to be
completed within 24 months from the date of the
first authorization from the utility company
to the franchisee allowing for pole attach-
ment.
(Note: "Authorization" as used herein shall
mean that date when any franchisee could have
attached and installed cable.)
SECTION 8. PROGRESS REPORTS AND CHANNEL BROADCASTING
(a) The Grantee shall provide to the City Manager:
(i) 30 -day progress reports on the construc-
tion of the System, with the first report
due on August 1, 1980.
(ii) an annual written report, which shall
describe the manner in which the System is
being maintained and such other informa-
tion as requested by the City Manager
pertaining to the technical aspects of
the System. The first such report shall
be provided on July 1, 1980.
(b) Grantee shall provide all television channels
broadcasting in Los Angeles, Orange, San Diego
and San Bernardino Counties, presently and in
the future, and all other services specified in
Section V of Grantee's proposal as soon as they
become commercially available and are allowed
by Federal Communication Commission rules.
SECTION 9. Services to the City.
Grantee shall upon request furnish and maintain in
good working order at its own expense and without
any cost to the City whatsoever, the following
facilities and services :
(a) To provide the cable System (using a second
cable if necessary) for direct cable casting of
live programs in color to all franchise
subscribers in Temple City from up to five
separate locations within government facili-
ties in the Temple City Civic Center as
selected by the City.
(b) To provide the cable System (using a second
cable if necessary) for direct cable casting of
live programs in color to all franchise
subscribers in Temple City from Temple City
High School at the request of the School
District.
(c) One of the two educational access channels will
be for use by public schools. Until such time
as the public schools provide programming for
this channel, Grantee may make use thereof. As
required by Grantee, the public schools shall
save and hold harmless Grantee from any uses
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made by the public schools in the distribution
of programming.
(d) Six monitors (at least 19" in size and of
current color vintage) to be placed at the
disposal of the City.
(e) Free service to all government facilities and
to each of the schools within Temple City
limits - this includes one drop line to each
school and 19" color monitor. School as used
herein shall include all kindergarten through
twelfth grade public and private schools.
(f) In the event that City or any public school
desires to have additional connections of the
cable television System or the cable televi-
sion distribution System within such buildings
installed by Grantee, Grantee shall make such
connections or installations charging to the
City or public school the actual cost to
Grantee of such connections or installations.
Grantee shall reserve the right to subcontract
such installations or connections when deemed
necessary. Installation of all additional
connections to public buildings shall be
completed within sixty (60) days of receipt of
request for such connections.
(g) Grantee shall not charge City or any public
school for delivering any regularly carried
basic service signals to any of the buildings
described in Subsections (a), (b) (d) or (e) of
this Section.
(h) Grantee shall provide, without cost, one
channel to be programmed by and for use by the
City of Temple City for the distribution of
programming in the public interest. Unti. such
time as the City provides programming for this
channel, Grantee may make use thereof. If
Grantee operates a remote or portable vehicle
and equipment for telecasting and video
taping, Grantee shall provide origination
service to City at such reasonable times and
costs as are mutually agreed upon.
(i) Two channels for public or community access in
accordance with reasonable rules, regulations
and conditions.
(j) One channel programmed for senior citizens
called CINEMERICA, unless not available with-
out fault of Grantee.
(k) Grantee shall provide, at no cost throughout
the year, community video workshops to in-
struct interested members of the community in
the use of such equipment as needed to produce
programs, including, but not limited to,
cameras, editing equipment, lighting and video
tape machines. Such workshops shall be
conducted as requested by the City, not to
exceed six per year.
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(1) Grantee shall provide, at no additional cost to
the City, a character input keyboard, as
defined in the proposal.
(m) Grantee shall provide, at no additional cost to
the City, an emergency alert service allowing
City officials to override the audio on all
cable channels from any telephone to make
emergency announcements.
(n) Grantee shall provide:
(1) an office, and
(2) a studio, all as provided in Ordinance 80-
492 and in Grantee's supplemental pro-
posal.
(o) At no additional costs to the user or City,
studio and portable gear, as outlined in
Grantee's proposal.
(p) Grantee will provide local origination staff
trained in local production techniques to
operate studio equipment and do video tape
recording and playback.
(q) Grantee will provide other services in accor-
dance with Sections V and VI of its franchise
proposal including satellite service.
Section 10. Establishment and Extension of Service
(a) Grantee shall extend and offer service to
subscribers within the franchise area as
provided in Section 7. The Council, in its
discretion, may extend the time for the
commencement and completion of construction
and installation for additional periods in the
event that the Council determines that Gran-
tee, acting in good faith, experiences delays
by reason of circumstances beyond the control
of Grantee. Such determination shall be
reviewable only under CCP 1085, not under CCP
1094.5.
(b) Grantee shall operate the cable television
System authorized by this franchise in accor-
dance with the minimum technical standards set
forth in Section 6362 of Ordinance No. 80 -492.
(c
Initially, the Grantee shall offer the ser-
vices indicated in the franchise proposal. The
Company shall at all times offer services equal
to or better than those listed in the proposal.
In this connection Grantee shall use bona fide
and reasonable effort to update such System as
new innovations and technology become avail-
able so as at all times to compare favorably
with Systems in effect within cities situated
within 10 miles to the extent such innovations
are feasible and economic.
(d) The Grantee shall provide, maintain and
operate facilities which deliver signals of
adequate strength to produce good video
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signals with good sound at all outlets which
meet FCC and cable television standards.
(e) Grantee shall maintain an office within the
City of Temple City which office shall be open
during reasonable business hours, have a local
telephone number listed in the directory of the
telephone company, and be so operated that
complaints and requests for repair or adjust-
ments may be received at any time. Grantee
shall maintain for City inspection its re-
cords, logs and processing of complaints.
(f) Grantee shall operate the cable television
System authorized by this franchise twenty -
four (24) hours per day, seven (7) days per
week.
SECTION 11. SEPARABILITY AND SEVERABILITY
If any provision of this Resolution or the
franchise is held to be invalid or pre - empted by
Federal or State regulations or laws, the City shall
have the option to terminate or modify Ordinance No.
80 -492 or this franchise Resolution. If any of the
provisions of this Resolution or the application
thereof to any person or circumstances is held
invalid by a court of competent and final
jurisdiction, such invalidity shall not affect
other provisions or applications of the Resolution
which can be given effect without the invalid
provision or application and to this end the
provisions of this Resolution are declared sever-
able at that time. The invalidity of any portion of
this Resolution shall not abate, reduce or otherwise
affect any consideration or other obligation
required of the Grantee of any franchise granted
hereunder.
SECTION 12. TIME OF ESSENCE
The dates set forth in this Resolution are declared
to be a vital part of the consideration upon which
this franchise is granted, and therefore declared to
be of the essence.
SECTION 13. ATTORNEYS FEES
Should it become necessary for City to maintain a
court action to enforce any of the provisions hereof
against Falcon or any of the financial security
posted as a result of this Resolution, then in the
event City prevails in such enforcement by court
proceedings, whether by judgment or stipulation,
City shall recover from Falcon or such other
interested party, reasonable attorneys fees and
costs for such enforcement proceedings.
SECTION 14. COMPLIANCE WITH ALL LAWS
Grantee shall comply with all laws now in effect or
which may hereafter be adopted which govern or
legislate the operation of a cable television
System. The provisions hereof shall not be
construed as any limitation upon the reasonable
exercise of police power by the City.
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SECTION 15. RELOCATION
Grantee agrees to absorb any and all costs in
connection with a relocation of its facilities as
may be from time to time required by the City or any
public utility in the same manner and fashion as
public utilities are required to relocate in the
proper exercise of police power by the City.
SECTION 16. EFFECTIVE DATE
This Resolution shall be in full force and effect
upon passage by the City Council except as set forth
in Section 5 hereof.
ADOPTED THIS 17th day of June, 1980.
Mayor aa1040Alit__
e City of
Temple City
ATTEST:
- Chief Deputy
City Clerk of the City of Temple City
I hereby certify that the foregoing Resolution was
duly and regularly adopted by the City Council of the
City of Temple City at a regular meeting thereof held on
the 17th day of June, 1980 by the following vote:
AYES: Councilmen - Dennis, Gillanders, Merritt, Tyrell, Atkins
NOES: Councilmen -None
ABSENT: Councilmen -None
Chief Deputy
City Clerk of the City of
Temple City