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HomeMy WebLinkAboutORD 69-41ORDINANCE NO. ENTITLED AN ORDINANCE GRANTING A FRANCHISE TO BEAUMONT CABLEVISION, INC. TO MAINTAIN AND OPERATE A CABLE TELEVISION SYSTEM IN THE CITY; PROVIDING FOR SEVERABILITY; 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 RULES GOVERNING THE OPERATION OF THE SYSTEM; AUTHORIZING CERTAIN RATES AND CHARGES FOR SERVICES; PROVIDING FOR FRANCHISE PAYMENTS TO THE CITY; PROVIDING FOR TERMINATION FOR FAILURE TO COMPLY WITH THE PRO- VISIONS HEREOF. BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS: Section Io GENERAL PROVISIONS (1) This ordinance shall be known and may be cited as the "Beau- mont Cablevision, Inco Beaumont Community Antenna Television Franchise ordinance". (2) For purposes of this ordinance, the word "shall" is always mandatory and not merely directory; the term "City" means The City of Beaumont, Texas, a municipal corporation of Jefferson County, Texas; the term "Company" means Beaumont Cablevision, Inc., a Texas corporation domiciled in Orange County, Texas, bearing Charter No. 255162, said Charter having been granted November 18, 1968, 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 Lynwood Sanders and his address is 720 Front Street, Orange, Orange County, 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 this ordinance and before its effective date, the full text of same shall be published once eachweek for four consecutive weeks in a newspaper of general circulation published in The City of Beaumont and the expense of such publication shall be borne by Company. (5) Company shall within thirty (30) days from the date of the final passage of this ordinance 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® L� lowing form: "To the Honorable Mayor and the City Council of The City of Beaumont Beaumont Cablevision, Inco (Charter No. 255162) hereby unconditionally accepts the attached ordinance finally passed by the City Council of The City of Beaumont, Texas, on the day of , 196 , and agrees to be bound byallof its terms and provisions. Beaumont Cablevision, Inc. i I By President 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 of, the Constitutions and Laws of Texas and Charter i ...G r+ 4 .. n l� X 1 1 0 +- 01 1 1-1 _n 0 Ilii v^ i n rr f -h o 1; fn o f t-}1 'i 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 reason 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, alleys, 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 interception, 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 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 City, 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 of 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 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. 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 subsection (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. (2) 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 part. (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 Company has not commenced con- struction of the system under this franchise within twelve (12) months from the effective date of this ordinance, or if Company does not have service available to at least thirty (30%) per cent of the homes within the 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 "home", 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 shall remove all of its equipment installed on all streets, alleys, easements and public places. If Company should fail to remove any of said equipment upon said termination 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 it, however extended, nor any payment made, nor any other 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: (a) At any time it terminates this franchise as set forth in subparagraph (2) and (3) of this Section III; or (b) At any time 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 service hereunder. If City elects to exercise such purchase right, the values of such property, if not agreed between the 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 and distribution structures, lines and equi 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 already existing and belonging to a public utility operating under a franchise from City and Company is herein required 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 structures 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 Company from installing its entire system underground. (3) Company is 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, sub6 division or city block of City where public utility lines are hereafter placed undergound, 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, 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 of the construction, reconstruction or maintenance of any public structure or facility, it shall be deemed necessary by the 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 Works Department of City. I ' i 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 be 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 branches 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 Vo 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 granting 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 de -fending .its_elf..with._.ree-gard to damajaes above :Set claims, damages and liability which would not have arisen but i for Company's operation and exercise of rights under this franchise. (2) 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 I 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 franchise. (3) Company shall procure, file with the City Clerk simultaneously - with the acceptance of this 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 accident. Such policy shall be written by an insurance company authorized to do business in Texas and having an agent on whom 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 7 ,,_�-/. claims, damages and liability which would not have arisen but for Company's operation and exercise of rights under this franchise. (2) Simultaneously with the acceptance of this franchise, Company I 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 i 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 franchise. (3) Company shall procure, file with the City Clerk simultaneously - with the acceptance of this 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 accident. Such policy shall be written by an insurance company authorized to do business in Texas and having an agent on whom 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 is not filed and -kept on file with the City Clerk then 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 (1) 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 and 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 color TV signals, and when the signals Company distributes are received in color they shall be distributed in color where 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 distributed by Company, with an- duplication provisions of subsection (7) of this Section VI and non -duplication restrictions that may otherwise be imposed by Federal Communications Commission. (d) Transmit signals of adequate strength to produce good pictures with good sound at all outlets without causing cross -modulation in the cables or interferring with other electrical or electronic systems. (e) Limit failures to a minimum by locating and correcting malfunctions promptly, but in no event longer than seventy-two (72) hours after notice. (f) Demonstrate by instruments and otherwise to subscribers that a signal of adequate strength and quality is being delivered. (g) Render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum use of the system. (h) Shall maintain an office in the City, which shall be open during all usual business hours, have a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received during all usual business hours and during all hours of telecast distribution. (i) Maintain a sufficient staff to service adequately all of the equipment which it furnishes, during all hours of telecast distribution. (j) Distribute all UHF and VHF telecasts originating in Jef- ferson and Orange Counties as part of its regular service unless Company is requested not to distribute any such telecast by the telecaster or by any person having a lawful right to prevent such distribution. (k) Distribute weather information service. , R (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 hamar 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 interrupt 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 program interrupted) in order to provide adequate civil 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 b present channel: number designations. (3) The Company shall not cease transmission through any'sub- stantial part of its system for any period of more than thirty (30) days. (4) The authority herein granted is not 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 other private proprietary interest to forbid any use thereof without the license or other.permit of such owner. (5) Company is specifically barred from delivering television 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 as a means of collecting for any of its services, (6) Company is specifically prohibited from engaging in the business of selling, repairing or installing television, 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 present channel' number designations. (3) The Company shall not cease transmission through any�sub- stantial part of its system for any period of more than thirty (30) days. (4) The authority herein granted is not 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 other private proprietary interest to forbid any use thereof without the license or other permit of such owner. (5) Company is specifically barred from delivering television 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 as a means of collecting for any of its services. (6) Company is specifically prohibited from engaging in the business of selling, repairing or installing television: 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 for 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 (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 paragraphs (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 performed by Company under this franchise and the rates and charges of Company shall not exceed the following: (a) The residential rate shall not exceed $4050 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 $0.75 (75�.) per set per month. (c) Commercial rates shall not exceed $4050 per month per connection to a c.ommercial establishment, and the com- mercial monthly charge for additional outlets shall not exceed the following: for 2 through 15 additional outlets, $0.75 (75�_) per set; for 16 through 39 additional outlets, $0.65 (65�.) per set; for 40 through 54 additional outlets, $0.55 (55c,) per set; for over 54 additional outlets, (d) The charge for installation of a connection to any ex- terior -wall shall not exceed $4.50, 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. 1 � (e) The charge for reconnecting after disconnection by Company shall not exceed $4.50. (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 subsection (6) below. This subsection (5) shall not be construed to pro- hibit monthly billing in advance. (6) After seventy-five (75%) 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 therefor, extend any of its existing cables a distance of not to exceed one hundred (100) 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 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 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 1st 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 City under this franchise for the preceding calendar year ending 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 (3) This franchise is not transferable and Company shall not sell or transfer its system to another, nor transfer any rights under this franchise to another, nor lease nor rent the use 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 list 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 are held in trust then the beneficiaries thereof. Company shall not issue additional shares of stock nor shall any of the. -shares of stock nor the i beneficial interest therein nor the shares of a corporate shareholder nor the beneficial interest therein be sold, transferred, assigned or pledged without .the consent of Council, expressed by ordinance, unless such transaction results in a change of the right of control of Company of less than thirty (30) per cent from the persons having the i right of control of Company on the day this franchise is accepted. Section IX. FRANCHISE PAYMENTS (1) Company shall pay City a fee of $100,000.00 upon the accept- ance of this franchise as a franchise acceptance fee, to compensate City for its time and expense in connection 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 $10,000.00 or the amount equal to 7% of the annual gross revenues received by Company for services rendered within the City during the preceding calendar year ending December 31, 1969, whichever amount is greater. (b) On February 1, 1971, the amount of $25,000.00 or the amount equal -to 7% of the annual gross revenues received by Company for services rendered within the City during the preceding calendar year ending December 31, 19703 whichever amount is greater. (c) On February 1, 1972, the amount of $40,000.00 or the amount equal to 8% of the annual gross revenues re- ceived by Company for services rendered within the City during the preceding calendar year ending December 31, 1971, whichever amount is greater. (d) On February 1, 1973, the amount of $50,000.00 or the amount equal to 8% of the annual gross revenues re- ceived by 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 $60,000.00 or the amount equal to 9% of the annual gross revenues 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 $65,000.00'or the amount equal to 9% of the annual gross revenues re- ceived by Company for services rendered within the City during the preceding calendar year ending December 31, 1974, whichever amount is greater. (g) On February 1, 1976, the amount of $75,000.00 or. the amount equal to 10% of the annual gross revenues re- ceived by Company for services rendered within the City during the preceding calendar year ending December 31, 1975, whichever amount is greater. (h) On February 1, 1977, the amount of $75,000.00 or the amount equal to 10% of the annual gross revenues re- ceived by Company for services rendered within the City during the preceding calendar year ending.December 31, . 1976, whichever amount is greater. (i) On February 1, 1978, the amount of $75,000.00 or the amount equal to 10% of the annual gross revenues re- ceived by Company for services rendered within the City during the preceding calendar year ending December 31, 1977, whichever amount is greater. On February 1, 1979, the amount of $115,000.00 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 December 31, 1978, whichever amount is greater. (k) On each of the dates of February 1, 1980, February 1, 1981, February 1, 1982, February 1, 1983, February 1, 1984, February 1, 1985, February 1, 1986, February 1, 1987, February 1, 1988, February 1, 1989, February 1, 1990, February 1, 1991, February 1, 1992,.February 1, 1993, and February 1, 1994, the amount of $115,000.00 or the.amount of 15% of the annual gross revenues re- ceived by Company for services rendered within the City during the calendar year preceding the date of payment, 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 15% of the gross revenues for the period in addition to making the February 1, 1994 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 r 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 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 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 exercise 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 paragraph (k) of subsection (2) of 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 $75,000.00 in addition to the acceptance fee of $100,000.00. Such cash advance shall be credited against the annual payments due on February 1, 1970, February 1, 1971, and February 1, 1972. (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, permit fees for constructions, or other fees, charges, taxes and the like applicable to the public generally. PASSED, First reading on the / I f day of 196. PASSED, Second reading on the day of -Ju I- 196 ,196: 411 W PASSED, Third and Final reading on the 21 day of 1969. APP 0VED, this the 22- day of 196 - Mayor -