HomeMy WebLinkAboutORD 69-61ORDINANCE- NO
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ENTITLED AN ORDINANCE GRANTING A FRANCHISE TO 1
JEFFERSON CABLEVISION; INC. TO MAINTAIN AND
OPERATE A CABLE TLLEViSI0N.SYSTEM IN THE CITY;
PROVIDING FOR SEVERABILTLTY; PROVIDING THE TERM
OF SUCH FRANCHISE; SETTING FORTH CONDITIONS.
ACCOMPANYING THE GRANT OF THE FRANCHISE; PRO-
VIDING REGULATIONS GOVERNING THE USE OF PUBLIC
PROPERTY BY THE GRANTEE; PROVIDING FOR INDEMNITY
TO THE CITY-;- PROVIDING` ".iULE5 .GOVERNING THE
OPERATION=OF THE SYSTEM', AUTHORIZING CERTAIN
RATES AND CHARGES FOR SERVICES; PROVIDING FOR
FRANCHISE PAYMENTS TO TI4E CITY;.PROVIDING FOR
TERMINATION FOR FAILURE, -TO COMPLY WITH THE PRO-
VISIONS. HEREOF.
BE IT ORDAINED BY THE CITY OF BEAUMONT TEXAS:
Section I.,
GENERAL PROVISIONS.
(1) This ordinance shall be known and may be cited a,s the "Jef-
ferson.Cablevi,sion, Inca Beaumont Community Antenna Tele-
vision_Franchise Ordinance".
(2) F r purposes of this ordinance, the word "shall" is always
mandatory -and-- not merely directory; the term t°City°" means The
City of Beaumont, Texas, a municipal corporation of Jefferson
County, Texas; the term "Company" means Jefferson Cablevision,
Inc., a Texas corporation domiciled in Jefferson County, Texas,
the grantee of rights under this ordinance; the 'term "Council'!
means the governing body of The City 'of Beaumont, Texas.
(3) -The agent of Company for the purpose of all notices provided
for under this ordinance is Howell Cobb and his address is
Beaumont Savings Building, Beaumont, Texas, until same are
changed by written notice filed with the City Clerk of The
City of Beaumont.
(4) This ordinance shall not.be passed until it has been read at
three (3) separate regular meetings of Council and shall not
be passed finally until the -final reading which shall be,not
less than thirty (30) days from the first reading and this
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ordinance shall not take"effect until 'sixty (60) days after
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its adoption on third and final reading. After passage of
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this ordinance and before its effective date, the full text
,of same shall be published once each week for four consecutive
weeks in a newspaper of general circulation published in The
City of Beaumont and the exaense of such publication shall be
borne by Company.
(5) Company shall within thirty (30) days from the date of the
final passage of this,o.rdinance by Council, file with the
City Clerk of City a.written statement signed in its name and
behalf and acknowledged before a notary public in the fol-
lowing form -
"To the Honorable Mayor.and the City
..Council of The City of Beaumont
Jefferson Cablevision, Inco hereby
unconditionally accepts the attached
ordinance finally..passed. by the City
Council of The City of Beaumont, Texas,
on the --day of 9
196 and -agrees to -be botEd by all
of its terms and provisions_t
Jefferson Cablevision, Inco
By
Press ent
Dated.
day of 196 "
(6) The rights, privilege and franchise granted hereby is not ex-
clusive and nothing herein contained shall be construed to
prevent City from granting any other similar right, privilege
and franchise to any other person or corporation and City
reserves the right to grant same.
(7) This grant is subject to all valid powers and rights now or
hereafter vested or reserved in City under, and to all pro-
visions ofg the Constitutions and Laws of Texas and Charter
of City. Company shall at all times during.the life of this
franchise be subject to all lawful exercise of the police
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power by City, and to such .reasonable regulations as City
shall hereafter by ordinance provide.
(8) If any section, subsection, sentence, clause, phrase.or portion
of this ordinance is for any-Eason.held- invalid or unconsti-
tutional by any court of competent jurisdiction, such portion
shall be deemed a separate, distinct, and independent pro-
vision and such holding shall not affect the validity of the
remaining portions hereof.
Section II.
GRANT OF AUTHORITY
(1) City hereby grants to Company the right and privilege to'con
struct, erect, operate and maintain in, upon., along, across,
above, over and under its streets, aileys,`easements'and
public places, the Company's poles, wires, cables,'underground
conduits; manholes and other television conductors and fixtures
necessary for the maintenance and operation in the City of.a
cable television system for the interdeption, transmission
and distribution of audio and video signals, including tele-
vision, to the extent that such use will not interfere with
the public's use or City's use, and to the extent that the
City may lawfully permit the use of the above described pro-
perties for the purposes set forth.
(2) City hereby grants Company the right, privilege'and'authority
to obtain the use of facilities of any public utility operating
under a franchise from City subject to acceptance'by said.
utility and with its express consent and subject to the
regulations imposed upon said utility by City. Any permission
.-to Company herein granted to use the facilities of any public
utility with the express consent of such utility is subordinate
to the rights of City to use such utility facilities as re-
served to City in any such utility franchise.
(3) Company shall have the authority to promulgate such rules,
regulations, terms.and conditions governing the conduct of
its business that shall be reasonably necessary to enable
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Company to exercise its rights and perform its obligations
under this ordinance, and to assure an uninterrupted service
to each and all of its customers; provided, that such rules,
regulations, terms and conditions shall not be in conflict
with the provisions hereof, the ordinances of 0ity, or the
laws of the State of Texas. All rules, regulations, terms
and conditions promulgated hereunder shall be filed with
City Clerk of City.
(4) This ordinance and the franchise shall be for a period off
twenty-five (25) years from the effective date of this ordi-
nance, unless sooner terminated as herein'provided., If,
within thirty '(30) days from the date of the final passage
of'this ordinance, Company has not accepted these terms as
herein provided and fully complied with the provisions o'f
subsections (2) and (3) of Section'' V hei rein', subsection (4)
of Section VIII herein, and subsections (1) and (4) of Section
IX -herein, it shall be void and of no further force and effect.
Section III.
DURATION, CANCELLATION, AND;OPTION
(1) The authority and rights herein granted shall take effect
upon.the effective date of this ordinance (sixty (60).days.
after its adoption on third and final reading) and shall con-
tinue.in.force and effect for a term of twenty-five (25) years
commencing on said date, unless sooner terminated as provided
herein. Provided, however, that if within thirty (30) days
from the date of final passage of this ordinance, Company has
not accepted these terms as herein provided in subsection (5)
of Section I herein, and fully complied with the provisions
of subsections (2) and (3) of Section V herein, subsection
(4) of Section VIII herein, and subsections (1) and (4) of
Section IX herein, it shall be void and of no further force
and effect.
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(2)
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If Company should fail to comply with any of .the, provisions
of this ordinance or default in any of its obligations and
shall fail within thirty (30) days,after written notice from
the City Manager of City to correct such default, noncom-
pliance or breach, or if Company becomes insolvent or is
adjudged a bankrupt, City may, at its option, forthwith ter-
minate this franchise in whole or in parte
(3) Notwithstanding that delay is due to the action of any govern-
mental agency, legislative body, or court, and notwithstanding
that delay is due to strike or Act of God, or the failure of
a franchised public utility to permit the use of its poles
and structures by Company, if'Comparny has not commenced con-
struction'of the system under this franchise within twelve
(12) months from the effective date'of this ordinance;' or if
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Company does not have service available to at least thirty
(30%) per cent of the homes withinthe city limits of City -
within thirty-six (36) months from the effective date of this
ordinance, or if Company does not have service available to
at least seventy-five (75%) per cent of the homes within the
city limits of City within sixty (60) months from the effective
date of this ordinance, then City may, at its option forthwith
terminate this franchise and terminate Company's rights here-
under. A 11home", for purposes of this ordinance, means a
single-family dwelling or a unit of a multiple dwelling but
not a unit of a hotel or motel. "Service Available", for
purposes of this subsection, means Company has a wire or cable
within 100 feet of the home from which said home can be served
upon request.
(4) In the event that this franchise is terminated, either by
expiration of time or -as above set forth, and City does not
exercise its option to purchase Company's properties as set
forth in subsection (6) of this Section III, then upon ninety
(90) days written notice from City Manager of City, Company
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shall remove all of its equipment installed on all streets.,
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alleys, easements and public places, If Company shbuld fail
to remove any of said equipment upon said termihation.and
notice, then City* shall have the right to remove it at the
cost and expense of Company and City shall have the right to
and may recover from Company and/or the Surety on Company's
performance bond any and all expenses incurred by City in so
removing said equipment.
(5) Company agrees that no use of any property or right'by
however extended, nor any payment made, nor any othet action
or inaction by City or by Company shall create or Vest in
Company any ownership or property right in any of the pro-
perties or property rights occupied or used or upon which any
expenses has been undertaken by Company as''a result of the
exercise by Company of the rights and privileges enumerated
in this ordinance.
(6) The City shall have the right: (n) �Ait any time it terminates
this franchise as set forth in subparagraph (2) and (3) of
this Section III; or (b) At anytime within five (5) years of
the expiration of the term hereof, but prior to the last
twelve (12) months of said term, with same to be effective at
the expiration of the fixed term; to purchase or cause to be
purchased the property of Company devoted to public I service
hereunder. If City elects to exercise such purchase right,
the values of such property, if not agreed between'th'e parties,
shall be determined in an appropriate proceeding filed in any
court having jurisdiction. Before the City shall purchase,
or cause to be purchased, such property of Company, the matter
of the acquisition of such property shall be submitted to a
municipal election to -be determined by a majority vote of the
qualified taxpayers voting thereon.
Section IV.
USE OF PUBLIC PROPERTY
(1) All transmission and distribution structures, lines and equip -
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ment erected by Company within the City shall be so located
as to cause minimum interference with the proper use of -
streets, alleys and other public ways and places, and to
cause minimum interference with the rights or reasonable
convenience of property owners who adjoin any of the said
streets, alleys or other public ways and places.
(2) Company is hereby prohibited from erecting.poles or other
wire -holding or cable-holding.structures in any location
where its subscribers can be reached from poles or other
wire -holding or cable-holding.structures alreadyexisting
and belonging toa public utility operating under a'franchise
from City and Company is herein:requir°ed to utilize such
poles and structures of such public utility in'accordance
with the rules and with the express consent of the public
utility involved. 'In specific locations which cannot be
reached by the use of poles and structutes of public utilities,
Company may construct its own poles. Prior to commencing
construction, Company shall file with City Clerk of City and
obtain approval of the Department of Public Works of'City
of Company's license from a public utility franchised by City
to utilize the poles and structures of said utility. This
subsection shall not be construed to prohibit Companyfrom
installing its entire system underground.
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(3) Company/hereby prohibited from erecting poles or installing
cables, wires or other facilities above ground in any area,
subdivision.or city block in which other public utility systems
utilize underground transmission systems. In any area, sub-
division or city block of City where public utility lines are
hereafter placed underground, Company shall forthwith remove,
install and operate all of its cables, lines and other facil-
ities underground.
(4) In case of any disturbance by Company of pavement, sidewalk,
driveway or other surfacing, Company shall, at its own cost
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and expense and in the manner approved by the Director of
Public Works of City, replace and restore all paving, side-
walk, driveway or surface disturbed, in as good condition as
before said work was commenced, and shall maintain the
restoration in an approved condition for a period of one year.
(5) In the event that at any time during the period of this
franchise the City shall elect to narrow, widen, relocate,
alter, or change the grade of any street, alley or other
public way, or to vacate or abandon same, Company, upon
..reasonable notice by City, shall remove,' relay and relocate
its poles, wires, cables, underground.conduits, manholes and
other appurtenant fixtures at its'own.expense`and without
claim for reimbursement from City. Whenever, by reason oi"
the construction', reconstruction or'maintenance of any public
structure or facility; it shall be deemed necessary by ,, he
Department of Public Works of City for Company to remove,
relocate, change, alter or modify any of its facilities,.-.-
Company shall promptly do so upon.reasonable notice.by City,
at Company's own expense and without claim for reimbursement
from City.
(6) Company shall not place poles or other fixtures where the
same will interfere with any gas, electric or telephone fix-
tures, water hydrant or main, sewer line or drainage `facility,
and all such poles or other fixtures shall be placed"as
directed by the Public Works Department of City and in such
manner as.not to interfere with the usual travel or use.'of
streets, alleys or public ways. Company shall make.no exca-
vation in the streets, alleys and public places without first
procuring a written permit from the Department of Public
Works of City and all work shall meet the requirements of the
Public---Wor-ks Department of City.
(7) Where a property owner requests in writing that Company re-
locate its poles and fixtures located on the.s.treet or
easement adjacent to the property of such property owner,..
Company shall relocate such poles or fixtures, where possible,
within a reasonable time and ... at the expense of such requesting
property owner.
(8) -Company shall, on the request of any person holding a building
moving permit issued by City, temporarily raise or lower its
wires and cables to permit the moving of buildings. The
reasonable expense of such temporary removal, raising.or
lowering of wires and cables shall be paid by the person re-
questing the same, and Company shall have the authority'to
require such payment in advance. Company shall te'given not"
less than forty-eight (48) hours' advance notice to arrange
for such temporary changes.
(9) Company shall have the authority, to the extent that City
may lawfully grant same, to trim trees upon.and overhanging
streets, alleys,.., sidewalks and public places of City so as
to prevent the,6b.ranches of such trees from coming in contact
with the wire and cables -of Company. Provided, that City
shall have the option to do such triming at the expense of
Company.
Section V.
INDEMNITY, INSURANCE AND SECURITY
(1). Company shall indemnify and save harmless the City, its
officers and employees, from any and all claims, damages,
lawsuits, judgments and liability arising out of or%resulting
from the construction, operation or maintenance of its system
or the gran"cing of this franchise or Company's operations
hereunder. These damages shall include, but shall not be
limited to, infringement of any copyright, trademark.or
franchise. Company shall pay to City any.expenses incurred
by City in defending itself with regard to damages above set
forth including reasonable value of services rendered by the
City Attorney or his assistants. Company waives all claims,
damages and liability it could assert against City, as to all
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(3)
claims, damages and liability which would riot have arisen but
for Company's operation and exercise of rights under this
franchise.
Simultaneously with the acceptance of this,franchise,.,Company
shall file with the City Clerk, and shall maintain throughout
the term of this franchise, a performance bond running to
City, with a corporate surety licensed to do business -in
Texas, in the amount of. One Hundred Thousand Dollars ($100,000),
approved by said Clerk, conditioned that Company.shall well
and truly observe, fulfill and perform each term and con-
dition of this franchise including the indemnity provision
above set forth, and that in case'of any breach of condition
of the bond, the amount thereof shall'be recoverable from the
principal and surety thereof by.the City for all damages
resulting from the failure of -Company to well'and faithfully
observe and perform any provision'of'this franchisee
Company shall procure, file with the City Clerk simultaneously
with the acceptance. of thig franchise, and keep in force
throughout the term of this franchise, at its own cost and
expense, a general comprehensive liability -insurance policy,
insuring liability on the part of the named insured occa-
sioned by the operation of Company under this franchise with
minimum liability limits as follows.: Two Hundred Fifty'
Thousand Dollars ($250,000) for personal injury or death of
one person; Five Hundred Thousand Dollars ($500,000)`for
personal injury or death in one single accident; and One
Hundred Thousand Dollars ($100,000) for property damage in
one single accidents Such policy.shall be written by an
insurance. company ..authorized. to do bu.s.ines-s in Texas .and
.having an agent on.lwhom process can be served in Jefferson
County, Texas. The policy shall be subject .to -approval by
City and shall name Company, City, and the officers and
employees of City as named insureds. If the original policy
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is not filed and kept on file with the City Clerk thea a
certificate and certified copy thereof shall'be so kept on'
file and such policy shall provide that it cannot be cancelled
nor the coverage reduced without ten (10) days written notice
to the City Clerk.
Section VI.
OPERATION OF SYSTEM
Company shall install and maintain its wires, cables, fixtures
and other equipment in accordance with the requirements of the
National Electrical Code of the National Board of Fire Under-
writers and in accordance with sound engineering practice'an.d
same shall at all times'be kept and maintained 'in a safe,
suitable, substantial condition, and in good order and repair.
All above ground wires and cables crossing a highway, road or
street shall be at least twenty-two (22) feet above the sur-
face of the traffic lane.
(2) The Company shall:
(a) Use facilities capable -of distributing colorV sigrais,
and when the signals Company distributes are received in
color they shall be distributed in color were technically
feasible.
(b) Receive and distribute, and furnish to its. subscribers'
the television signals of at least eight (8) commercial
television.broadcasting stations licensed by the Federal
Communications Commission;- and Company .shall produce a
picture, whether in black and white or in color, that is
undistorted, free from ghost images, and accompanied
with proper sound on typical standard production TV sets
in good repair, and as good as the state of the art
allows, of and from at least five (5) of such stations.,,,
(c) Carry in their entirety as received all programs of
broadcasting stations,diitributed by Company, with an-
nouncements and advertisements and without addition or
deletion, unless prevented from so doing by the non-
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(1) Distribute television signals in accordance with emergency
procedures of Civil Defense and Disaster authorities.
(m) Make one channel available, provide a studio within the -
city limits of City, and provide the necessary tele-
casting equipment, all without charge, for proper use
by Lamar State College and other educational institutions
for programs to be originated by such institutions.
Such telecasting equipment shall be broadcast quality
equipment meeting Federal Communications Commission
standards and shall produce a'picture and sound which
meets Federal Communications Commission good engineering
standards.
(n) Install a system with the capability-, equipment, facilities
and personnel necessary to immediately in terrupt'signals
being distributed on any one channel'or on all channels
at once (and as soon as technically feasible to transmit
another program or signal in the place of the signal or
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p"rog-ram .lnl-e— .pte'd) " in orde to prow. -id adeq $t. ; ...'v
defense and disaster service information and to prevent
the distribution of defamatory, obscene and.other pro-
grams which for any reason may be actionable.
(o) Furnish the City, free of charge, the use of Company
owned poles for installation of City -owned traffic,
police and fire alarm equipment, to the extent that space
for such purpose is then reasonably available. At'least
one metallic circuit shall be made available to'the City,
free of charge, in any main underground ductlines con-
structed by Company.
(p) Carry local television stations located in Jefferson or
Orange Counties, with their present channel number desig-
nation and only with same unless Council, by ordinance,
finds that it would not be economically ortechnically
feasible to do so and permits the carrying of local
stations on channel number designations other than their
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present channel number designations.'
(3) The Company shall not cease transmission through any stab
.stantial part of its system for any period of more than thirty
(30) days.
(4) The authority herein granted isnot and shall not be in
derogation of any copyright or other private proprietary
interests and is granted without prejudice to any right of
the owner of any such copyright or tidier private proprietary
interest -to forbid any use thereof without the license or
other permit of such owner.
(5) Company is specifically barred from delivering televa_sion
signals, directly or indirectly, from any pay -television .
source and shall not make a special charge to' any subscriber
or receiver for any special program or event nor -shall it
maintain a coin box or other device a4 a'mean's of collecting
for any of its services.
(6) Company is specifically prohibited from engaging in the.
business of selling, repairing.or i+st-allir±g .te.l,evisions re-
ceivers, radio receivers or accessories for such receivers
within the City during the term of this franchise.
(7) Company shall not simultaneously distribute to its subscribers
any program of any kind being broadcast by any local television
station located in Jefferson or Orange Counties, nor distribute
any program which is to be broadcast by any such local station
48 hours before such program is broadcast by the local station
and fora period of 48 hours after such broadcast, except by
and with the consent of said local stations, provided Company
has received.notice in writing from such local station 72
hours in advance of the program's scheduled presentation over
such local station. Company guarantees to operate its cable
system in such a manner as to produce no degradation of
reception by persons within the City of the signals of such
local television stations,
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(8) The Company shall not originate -any program or advertising
without the consent of Council expressed by ordinance, This
subsection shall not be construed to prohibit Company from
complying with pragraphs (k), (1) and (m) of subsection (2)
of this Section VI.
Section VII.
RATES AND CHARGES
(1) Company shall not, as to rates, charges, service facilities,
rules, regulations, or in any other respect, make or'grant
any preference or advantage to any person, nor subject any
person to any prejudice or disadvantage, provided that nothing
in this franchise shall be deemed to�prohibit the establish-
ment of a graduated scale of charges and classified rate
schedules to which any customer coming.within such classifi-
cation would be entitled, provided that such rates have been
approved by Council.
(2) The following rates and charges are hereby authorized for -
service _perfo.rmed_ by Company under_.this.-_.franchise and the
rates and charges of Company shall not exceed the following:
(a) The residential rate shall not exceed $5.95 per month
per connection to any individual dwelling'unit or to any
unit of a multiple unit dwelling:
(b) Extensions to more than one television set in the same
individual dwelling unit or the same unit of a.multiple
unit dwelling shall not exceed $1.00 per set per month.
(c) Commercial rates shall not exceed $5.95 per month per
connection to a commercial establishment, and the com-
mercial monthly charge .for additional outlets shall not
exceed $3.00 per set.
(d) The charge for installation of a connection to any ex-
terior wall shall not exceed $9.50, provided that Company
is authorized to make free installations during certain
periods of time after notice to the public. Interior
wiring will be done on request at the customer's expense.
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(e) -The charge for reconnecting after disconnection.by
Company shall not exceed $5.00.
(3) Company shall furnish one drop and monthly service without
charge to all municipal departments, hospitals, charitable,
religious and educational institutions which are exempt from
municipal ad valorem taxation, upon request.
(4) Company shall make no charge for programs except those
charges expressly authorized herein. Company shall receive
no consideration whatsoever for or in connection with its
service to its subscribers other than in accordance with
this section.
(5) Company shall receive no deposit, advance payment, or penalty
from any subscriber or potential subscriber without approval
of Council expressed by ordinance, except as provided in
subsection (6) below. No connection. charge' shall' be received
more than'thirty (30) days prior to connection. No subscriber
shall be required to contract for service for more than one
(1) month.at the time except as provided in'subsectivn (6)
below. This subsection (5) shall not be construed to pro-
hibit monthly billing in advance.
(6) After seventy-five (7'5%) per cent of the homes in the City
have service available, then Company shall, where it`is+
necessary to supply any person not having' -service available
and who makes written demand therefgr, extend any of its
existing cables a distance of not to exceed one hundred (100)
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feet per customer, upon payment of three (3) months,advance
service -charge.
(7) A full schedule of rates shall be filed with City Clerk of
City and no'rate shall be changed.without the approval of
Council, expressed by ordinance, after reasonable notice and
hearing. The City hereby reserves the right and power, by
ordinance, after reasonable notice and hearing, to regulate,
fix, alter, lower or raise the rates and charges of .Company
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and Company hereby agrees that City shall have such ,right
and power. Such rates and charges shall be fair and reason-
able and shall not exceed the "rate necessary to yield a'fair
return upon the fair value of the property used in rendering
the public service.
Section VIII
REPORTS AND PROHIBITION OF TRANSFER
(1) On February lst of each year Company shall file with the City
Clerk a sworn report, verified by audit, showing:
(a) 'The gross receipts of Company from the operation of its
business within the corporate limits of the'C'ity under
this franchise for the preceding calendar year eliding
December 31st;
(b) How said receipts were expended, -showing specifically
the expense of labor, materials, supplies, services, and
salaries of officers, directors or any stockholders;
(c) The amount of said receipts spent for betterment or im-
provements;
(d) The rates for services rendered to the public;
(e) A list of all shareholders and number of shares held by
each, and if held in trust, then the names of the bene-
ficiaries thereof, and if any shareholder is a corporation
then a list of its shareholders and the number of shares
held by each, and if any are held in trust then the
beneficiaries thereof.
(2) Company,. upon reasonable notice, shall produce for City to
copy or inspect all of Company's plans, contracts, and'
engineering, accounting, financial, statistical,'customer and
service records relating to its property and operation under
this franchise, as well as its stockholder records.
(3) This franchise is not transferable -Sand Company shall not sell
or transfer its system'to anothe� nor transfer any rights
under this franchise to another,gnor lease nor rent the use
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of any channel of its system, except with the approval of
Council expressed by ordinance.
(4) Simultaneously with the acceptance of.this franchise, Company
shall file a sworn li.st of shareholders showing .the number
of shares held by each and if held in trust then the names
of the beneficiaries. thereof, and if.any shareholder.is a
corporation then a.list of its shareholders and the number'
of shares held by each, and if any ar.e held in.ttust then the
beneficiaries thereof. Company shal.l.'not.is_sue addi.t.ional
shares of stock nor' -shall any of the shares of stock nor the
beneficial interest therein nor tLe.shar.es of a corporate
shareholder nor the beneficial interest therein be sold,
transferred, assigned or pledged without the consent of'''
Council, expressed..by ordinance, unle.ss'suc.h transaction
results in a change of the right .of control .o.f.. Company' of
less than thirty (30) per cent from...tho-. pers.o.ns.. having' the
right of control of Company on the .da.y.this.franchise is
accepted.
Section IX.
FRANCHISE PAYMENTS
(1) Company shall pay City a fee of $105,000.00 upon the.accept-
ance of this franchise as a franchise acceptance fee; to
compensate City for its time and expense in c,onnectiori with
the granting of this franchise.
(2) Thereafter, Company shall pay to City annually the following
amounts at the following times:
(a) On February 1, 1970, the amount of $20,000.00 or the
amount .equal to 10% of the annual gross revenues
received by Company for services rendered within the
City during the preceding calendar year ending December
313 1969, whichever amount is greater.
(b) On February 1, 1971, the amount of $4.5,000.00 or the
amount equal to 10% of the annual gross revenues received
;..
by Company for services rendered within the City during
the preceding calendaryyear ending December 31, 1970,
whichever amount is g.reater.
(c) On February 1, 1972, the amount of $60,000600 or the
amountequalto.10%.of the.annua.l.gross revenues re-
ceived by Company for serv.ices.render;ed within the City
during.the preceding calendar year ending December 31,
1971, whichever amount is greater...
(d) On February 1, 1973; the amount of $75,000.00 or the
amount....e.qual to 10% of the annual grass. revenues re-
ceived..b_y Company for services rendered within the City
during the preceding calendar year. ending.. -December, 31,
1972, whichever amount is greater.
(e) On February 1, 1974, the amount of._ $75•,.0.0.0..00 or the
j
i
ceived by Company for services rendered within the
by Company for services rendered within the City during
the preceding calendaryyear ending December 31, 1970,
whichever amount is g.reater.
(c) On February 1, 1972, the amount of $60,000600 or the
amountequalto.10%.of the.annua.l.gross revenues re-
ceived by Company for serv.ices.render;ed within the City
during.the preceding calendar year ending December 31,
1971, whichever amount is greater...
(d) On February 1, 1973; the amount of $75,000.00 or the
amount....e.qual to 10% of the annual grass. revenues re-
ceived..b_y Company for services rendered within the City
during the preceding calendar year. ending.. -December, 31,
1972, whichever amount is greater.
(e) On February 1, 1974, the amount of._ $75•,.0.0.0..00 or the
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amount -equal to 10% of the annual....g.r.o.s.s . revenue's re-
ceived by Company for services rendered within the
-City
during the preceding calendar.year ending_.December
31,
1973, whichever amount is greater.
(f)
On February 1, 1975, the amount.. of. $.100.,,000.00 or
the
amount equal to 15% of the annual..gross revenues re-•
ceived by Company for services rendered within the
City
during the preceding calendar year ending:.D.ecember
31,
1974, whichever amount is greater.
(g)
On February 1, 1976, the amount of $125,.000.00.or
the
amount equal to 15% of the annual gross revenue.s..re-
ceived by Company for services rendered within the
City
during the preceding calendar year. ending_.D.e.c.ember
31,
1975, whichever amount is greater.
(h)
On February 1, 1977, the amount of $12.5_,000..0-0 or
the
amount equal to 15% of the annual.gro.s.s..revenues re-
ceived by Company for services rendered within the
City
during.the preceding calendar year ending December
31,
19769 whichever amount is greater.
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(i) On February 1, 1978, the .amount- of. $.125,00.0..00 or the
amount .e.qual to .15% of the ahnuaf .gro.s..s.. revenues re I:`"."
ceived by Company for services.:rdride.red within the'- City ;
during .the preceding. calendar.yeas.ending.December 31,-
1977, whichever amount is greater.
(j) On February 1, 1979, the amount..o.f .$.125,000.00 or the
0
amount. equal to 15% of the annua.l.:gr.o.s_s revenues rem
ceive.d by Company for .services..r.dndered.within the City.
during. the preceding ca.l.endar. ..year.. �end.ing December 31,
1978, wh.ieh.ever amount .is great.er..
(k) On each of the dates ..o.f...Feb.rua.r..y.__1,_..198.0.,.._.F-ebruary 1,.
1981, February 1, 1982, February. .1,—198.3`;. -February 1,
1984, F.e.bruary 1, 1.98.5., February .1, 19.86, February 1,
1987, February 1,. 1988, February .1., 19899 February 1:,
1990, February 1,. L991., February. .1... 19.92..,... February 1,
i
1993, and February 1, 1994, the.amoun.t.of $1252.0-00..0.0
or the amount of 20% of the annual gross revenues re-
ceived by Company for services rendered within the City
during the calendar year- 'pr.ece.: iii& "LiTC" 42se of pf.1. ntll,
and ending December 31st of .said year, whichever amount
is greater. Also, for any period of time in which the
term of this franchise extends into the calendar year
1994, Company shall pay to City the amount of 20% of the
gross revenues for the period inadditio.n:to.making the
February 1, 19.94 payment.
(3) City shall have the option and hereby reserves!the right, at
any time between January 1, 1978, and December 31, 1978, to=.-.
increase the franchise payments and fees -to be. paid to City
by Company for the calendar years remaining.for the term of
this franchise to the following amount: The amount equal to
the average of the franchise fees charged for Community
Antenna Television Franchises by the five largest Texas cities _==
(according to.the last preceding Federal Census) which have
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SPAM
l
operating systems. The franchise fees charged by such Texas
cities shall be that which is expressed as a percentage of
the gross revenues received by the franchise holder. Should
such -average result in lower amounts to be paid to City than .
s
the amounts specified in subsection (2) of this Section IX,
or should City fail to exercise the option set forth in this
subsection (3), or should the City e'xekcise such option and
this subsection (3) be later held invalid ..by....a final judgment
of a court of competent jurisdiction,: then the amounts
specified in...par.agraph. (k) of subsei.on. (2).bf this Section
IX' .shall control -and be payable by Company when due.
(4)
Simultaneously with the acceptance of the franchise,`Company
shall pay to City a cash advance in,the amount of $125,'000.00.
in addition to the acceptance 'fee of $.105.,.000..00. Such cash
advance shall he credited. against . th.e. annua.l...payments' due on
February 1, 1970, February 1, 19.71,. and February 1,. 1972.=`
Additionally, simultaneously with.the acceptance of .the fran-
chise, Company shall pay to City $75,.000.0.0 which"shall be .
held by City until a reasonable time after thirty-six (36)
months from the effective date of this ordinance and then,
by City, either be returned to Company, without interest, if
the franchise be then terminated, or otherwise credited
due 1, 1973.
against the annual payment on February
. (5)
Gross receipts for the purposes of this ordinance.shall mean
any and all compensation and other consideration in any form
whatsoever received by Company, with respect to the use of
its system, including, but not limited to, installation
charges and retail sales of television signals. The term,
however, shall not include any taxes collected by Company for
any governmental unit.
(6)
The compensation herein provided for does not relieve Company
from the payment of ad valorem taxes, special assessments,
SPAM
permit fees for constructions, or other fees, charges, taxes
and the like applicable to the public generally.
PASSED, First reading on the % day of z y ,
19 62.
PASSED, Second reading on the %,2,T�day of (i
196.
PASSED, Third and Final reading on the l(o.tfday of
196
APPROVED, this the. 16 ZA day of 196 .
Mayor -