83-8-Ordinance-CATV Investment Corp Franchise Agreement-07/05/1983ORDINANCE NO. 83-8
AN ORDINANCE GRANTING STAR CATV INVESTMENT CORP., ITS SUCCESSORS
AND ASSIGNS, A PERMIT TO LOCATE, CONSTRUCT, MAINTAIN AND OPERATE
A TELEVISION ANTENNA SERVICE IN THE CITY OF SANGER, TEXAS;
AUTHORIZING THE USE, RIGHT, PRIVILEGE, POWER AND AUTHORITY TO
CONSTRUCT, MAINTAIN, OPERATE AND REMOVE IN, OVER AND ACROSS THE
STREETS, AVENUES, PARKWAYS AND PUBLIC PLACES THE NECESSARY
EQUIPMENT FOR THE OPERATION OF A TELEVISION ANTENNA SERVICE AND
ELECTRONIC DISTRIBUTION SYSTEM IN THE CITY OF SANGER, TEXAS;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS:
SECTION 1. The word "City" as hereinafter used shall mean
and designate the City of Sanger, and the words "Company" or
"Franchisee" as hereinafter used shall mean and designate Star
CATV Investment Corp. "Cable System" or "Cable Communication
System" or "CATV" or "System" as hereinafter used shall mean
a system of coaxial cables or other electrical conductors and
equipment used or to be used to originate or receive television
or radio signals directly or indirectly off the air and to
transmit them via cable to subscribers for a fixed or variable
Fee, including the originations, receipt, transmission and
distribution of voices, sound signals, pictures, visual images,
digital signals, telemetry, or any other type of closed circuit
transmission by means of electrical impulses, whether or not
directed to originating signals or receiving signals off the
air. The word "Property" as hereinafter used shall mean and
designate all rights and contracts of whatever kind, and all
poles, wires, cables, apparatus and other appliances, appur-
tenances and fixtures owned by the Franchisee and located within
the corporate limits of said City.
SECTION 2. There is hereby granted to the Franchisee,
upon the approval of the City of Sanger the right, privilege
and authority to construct, lay, maintain and operate, and
remove a system of poles, wires, conduits and other fixtures
across, along, under and over streets, alleys, parkways, public
grounds and other places in said City for the purpose of
construction, maintaining and operating a cable television
service and electronic distribution system in the City of Sanger.
SECTION 3. The franchise hereby granted shall be effective
from and after the date hereof and shall remain in full force
and effect for a period of fifteen (15) years upon payment of
the annual fee and tax as hereinafter provided and the said
Company shall have a right or option to negotiate the terms
of this lease for an additional fifteen (15) years after the
expiration of the primary term.
SECTION 4. The Company shall defend the City against all
lawful claims for injury to any person or property caused by the
installation and operation of the Company in the construction
or operation of its property; and the Company does hereby agree
to indemnify and hold harmless the City from any injury to any
person or property as a result of installation and operation on
the part of the Company, its successors and assigns hereunder,
in whole or in part, arising out of construction, repair,
extension, maintenance or operation of its equipment of any
kind or character used in connection with its business.
SECTION 5. The Company shall at all times make and keep
full and complete plats, maps and records showing the exact
location of all cable television service and electronic
tribution system equipment and shall provide such plats to the
City of Sanger.
All such installations of equipment shall be of
a'`permanent nature, durable and of a location not to interfere
in any manner with the rights of the public or individual
property owners, and shall not interfere with the travel and use
of public places by the public. The City reserves the right to
regulate the erection and construction of any work by the
Company, and to designate where such works and construction
shall be placed. The Company agrees, when requested by the City,
to make changes in its distribution system, in wires, poles, or
apparatus to conform to the requirements of small localized
areas, such changes to be effected when so requested within a
reasonable time, and further agrees to comply with such ordi-
nances as the City may now have or may hereafter pass regulating
the installation and maintenance of such equipment.
SECTION 7. The Company shall have the right to operate a
cable television service and electronic distribution system
during the existence of this franchise, and have the right to
extend its distribution system upon the streets, alleys and
public grounds of any addition or additions hereafter made to the
City's territory and to use the streets, alleys and public
grounds to continue to points beyond the corporate limits of said
City.
SECTION 8. The Company shall at all times during
existence of this franchise, maintain and require its
tractors to maintain insurance as follows:
(a) Workman's Compensation Insurance in accor-
dance with the laws of the State of Texas.
(b) The Franchisee shall be required to main-
tain insurance in such forms and in such
companies as shall be approved by the City,
such approval not to be unreasonably with-
held, to protect the City and the Fran-
chisee from and against any and all claims,
injury and damage to person or property,
both real and personal, caused by the con-
struction, erection, operation or mainte-
nance of any aspect of the System. The
amount of such insurance shall not be less
than the following:
General Liability Insurance
Bodily injury per person $100,000
Bodily injury per occurrence $300,000
Property damage per occurrence $ 50,000
Property damage, aggregate $100,000
(c) Automobile Liability Insurance with the
limits of not less than $25,000.00 to any
person and $50,000.00 as to any one ac-
cident and automobile property damage in-
surance with a limit of not less than
$1O,000.00 to cover all automobile equip-
ment.
(d) Property damage insurance with a limit of
not less than $5,000.00.
the
con -
The Company is and shall be considered an independent contractor
hereunder for all things.
SECTION 9. Failure or refusal> to :observe the terms and
provisions of this franchise by the Company, its successors and
assigns, shall entitle the City to cancel and terminate this
franchise and all rights hereunder. The City may exercise such
right ninety ( 90 ) days after serving notice upon the Company of
failure to observe the terms thereof, and upon refusal by the
Company during the said ninety ( 90 ) day period to perform or act
as required by said notice, this franchise shall be subject to
cancellation as hereinabove provided.
SECTION 10. All provisions of law provided and prescribed
for the granting of this franchise and authority are hereby
declared to have been fully complied with and the franchise shall
be in full force and effect from and after its execution and
approval. The Company's rate shall be as follows:
(a) A schedule of the maximum rates to be
charged by Franchisee for their services
to subscribers shall be as specified in
Appendix "A" attached hereto and incorporated
herein for all purposes.
(b) All subsequent changes in said rates shall
be subject to the prior approval of the City
Commission of the City of Sanger, Texas, after
an appropriate public hearing is held thereon
affording due process to all interested parties.
The Company shall pay the City as a franchise fee, and as
compensation for the rights and privileges enjoyed hereunder,
three percent (3%) of its gross subscriptions receipts, less
state sales tax, federal excise tax and copyright received by
the Company from all its connections to said cable television
service and electronic distribution system in said City. The
said gross subscription shall be computed quarterly and the
amounts due to City shall be computed quarterly and the amounts
due to City shall be paid on or before the 10th day of January,
10th day of April, loth day of July, and loth day of October.
SECTION 11. The Sanger Public School System will be fur-
nished one (1) connection each to the designated school bu
ings and each connection will be placed in a readily accessible
location, and the schools will be responsible for service beyond
the said free connection, and by requesting said free con-
nection, the school will hold said Company free of liability.
SECTION 12. The Cable Communication System Company (the
Franchisee) will maintain adequate personnel necessary to per-
form all duties.
SECTION 13. Provisions of the current requirements for
the system shall be and shall remain in accordance with the sped
fications and requirements promulgated by the Federal Communi-
cations Commission, and Franchisee will:
(a) Limit failures to a minimum by locating and
correcting malfunctions promptly, but in no
event longer than forty-eight (46) hours
after notice, unless such failures are caused
by the acts of God or circumstances beyond
the control of the Franchisee.
(b) Demonstrate by instruments and otherwise to
subscribers that a signal of adequate strength
and quality is being delivered and meets all
relevant specifications of the Federal Communi-
cations Commission and other applicable federal,
state and local regulations. The commission
may require proof of calibration of such test
instruments if deemed necessary in order to
arbitrate a specific complaint.
SECTION 14. The franchise granted by this ordinance cannot
in any event be sold, transferred, leased, assigned or disposed
of as a whole or in part, or otherwise, without prior consent of
the City expressed by Resolution, and then only under such
conditions as may be prescribed in the consenting Resolution;
provided, however, that no such consent shall be unreasonably
withheld, and further provided that no such consent shall be
required for any transfer in trust, mortgage or other hy-
pothecation, as a whole or in part, to secure an indebtedness.
There shall be no restriction upon the transfer of this franchise
to a controlled subsidiary or to a parent corporation.
SECTION 15. All installation costs of the Cable Com-
munications System Company shall be paid by the Company itself
and not by the City.
SECTION 16. Community antenna television service shall be
available to all areas within the corporate limits of the City
of Sanger, having a minimum of twenty-eight (28) homes per cable
mile. All applicants desiring community antenna service in-
stalled at a location greater than three hundred (300) feet from
the nearest distribution line shall pay to Franchisee, as a
condition for the installation of such service, the actual costs
of labor and materials for the additional distance above 300 feet.
SECTION 17. The rights, privileges and franchise granted
hereunder shall automatically terminate if Franchisee has not
diligently pursued and made all reasonable efforts to secure
approval of its applications With the Federal Communications
Commission to bring cable television to Sanger, Texas.
SECTION 18. The Franchisee will, upon seventy-two (72)hours
request and payment in advance of a reasonable charge, which
charge shall be subject to review at any time by the City
Council, adjust, raise or lower its wires temporarily to permit
the moving of houses or other bulky structures. The minimum
heightof all wires shall be eighteen (18) feet over streets and
alleys and public places or conform to all applicable codes which
may now be in effect or become effective hereafter. The Franchisee
may trim trees upon and overhanging the said streets, alleys,
sidewalks and public places to the extent reasonably necessary
to prevent the branches from coming into contact with the wires
or cables of the Franchisee, under the supervision of the City
Manager of the City of Sanger, Texas, at the expense of the
Franchisee.
SECTION 19. Severability Clause. If any word, phrase,
sentence, paragraph or section is found to be illegal, invalid,
or unconstitutional, the remaining portion of this ordinance
shall remain in full force and effect.
PASSED, APPROVED AND ADOPTED this the day of
1983.
ATTEST:
{TY SECRETARY
�F�ICIN L COPY
APPENDIX "A"
Basle Service
Cost: $8.95 per month
Tier 1: Basic Service plus 1 premium cliannel
Cost: $19.95 per month
Tier 2: Basic Service plus 2 premium channels
Cost: $26.95 per month
Tier 3: Basic Service plus 3 premium channels
Cost: $29.95 per month
Installation charge per houseriold - $25.00
Installation charge, additional outlet - $7.50
Charge for extra set, per month, each - $2.00
Charge to move connection - $15.00
Motel Rates:
APPENDIX "A" - CONTINUED
Per Month
Per Month
1 Premium Channel
lst Set - Basic only $12.95
2nd Set - and up $ 3.00 $4.00
Installation of rental of housing unit will be charged
at our cost for the material plus 20%
Lock boxes available on request.
in cost of material.
Example:
This will be included
Motel with 12 rooms - 1 Premium Channel in all rooms (cannot
be installed in restaurant or lounge)
lst set (Manager's quarters
or first set $19.95
ll other sets or rooms $77.00
$96.95
ItaffIrEd
THE STATE OF TEXAS I
COUNTY OF DENTON X
KNOW ALL MEN BY THESE PRESENTS:
THIS AGREEMENT made and entered into by and between the
CITY OF SANGER, TEXAS, a municipal corporation, hereinafter
called "CITY". Party of.the First Part, and STAR CATV INVESTMENT
CORPORATION, hereinafter called "TV CABLE", Party of the Second
Part,
W I T N E S S E T H
WHEREAS, TV Cable of Sanger, has been granted a franchise
by the City to operate.a community antenna television system within
the City of Sanger, and there is a desire and a necessity for TV
Cable to utilize the poles of the municipal power distribution
system of the City to attach and suspend wires and/or cables to
said poles for the distribution and servicing of the said community
antenna television system to the subscribers and customers of TV
Cable within the City Limits of Sanger.
NOW, THEREFORE, in consideration of the premises and covenants
herein contained, the parties hereto for themselves, their successors
and assigns, do hereby covenant and agree as follows:
1. This contract shall only cover the poles owned by the City
within the City Limits of the City of Sanger, and there is no intent
to grant TV Cable the right to utilize those poles within the City
Limits of Sanger owned by the Central Telephone Company; and it
being further covenanted and agreed by the parties herein that the
space on the poles owned by the City and which this contract
contemplates shall be the uppermost ten (10) feet measured from
the top of the said poles.
Z
. The terms of this lease shall be for a period of five (5)
years, automatically renewable at the end of that period, for
additional five (5) year periods, for a total possible duration of
this lease of fifteen (15) years, beginning the day of
1983, unless said lease is terminated by one (1)
year's written notice by lease hereto, prior to the end of any of
the said five year periods.
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CITY SECRETARY
ORIGINAL COPY
3. It being further understood and agreed by the parties
herein that the City and the Central Telephone Company have exe-
cuted a joint pole contract for which the telephone company has
the right to use the space c, forty (40) inches at a distance
below the space occupied by the City, and there is no intent by
the City to limit or restrict the use of the space allocated to
the,Central Telephone Company under the said pole contract. TV
Cable acknowledges notice of the said pole contract with the
Central Telephone Company and covenants to stay within the upper-
most ten (10) feet measured from the top of the pole, being that
portion reserved by the City in its contract with the Central
Telephone Company, and to maintain clearance as required by speci-
fications for such clearance as hereinafter set forth from both
the City's wires and the wires of the Central Telephone Company
and to not interfere with the Central Telephone Company's use of
said poles.
4. TV Cable covenants to comply with national standard
requirements in installation and maintenance of its wires, cables
and attachments on the City's poles, said standards being set
forth in the Current National Electrical -Code, adopted by the
National Fire Protection Association, and to further cooperate
with the City and the Central Telephone Company in proper utili-
z
ation of the right-of-way and easements owned or held by the
City for its power line installations. TV Cable further covenants
that in addition to the requirements set out in the herein referred
to National Electrical Code, to use good engineering standards and
techniques as are recognized within the electrical engineering,
communications and community antenna television system fields.
5. TV Cable shall pay a rental of per annum per pole
to the City for each pole utilized by TV Cable in its distribution
system. Rental payments hereunder shall cover rentals assuring
during the calendar year and as occupied on the 31st day of
December, and an accounting shall be made by a representative of
each party herein during the month of December to determine the
total poles utilized by TV Cable and the annual payment therefor.
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TV Cable covenants to.pay the City by the 15th day of January
the annual installment due for the prior year; however, it being
further understood and agreed by the parties herein that should
TV Cable not utilize said poles for a complete year, then said
cost shall be prorated for that portion of the year which TV
Cable used said poles.
.6. It being further provided and understood that the City
is not obligated to install or construct additional facilities
or poles for the benefit of TV Cable, but that TV Cable accepts
the City's installation as is. However, should the City install
additional poles at the request of TV Cable, reimbursement and
payment for the cost of said installation shall be further
negotiated or charges made by the City based upon the cost of
material and installation or construction in place.
7. TV Cable further covenants to not interfere with the
City's use of the said poles and acknowledges that the predominate
use of the said. poles is for the City's power line distribution
system and TV Cable's use of the same is subordinate and second
to the City's in the uppermost ten (10) feet of the said poles
and as provided for heretofore in this contract.
8. It being further understood, provided and agreed by the
parties herein that should it become necessary for TV Cable to
secure additional right-of-way and/or easements or to clear same,
that it will be TV Cable's responsibility in both securing and
maintaining said right-of-way and easements, paying for same as
necessary and maintaining said right-of-way and easements, and
that the City shall not be responsible for any cost or liability
concerning same.
9. TV CAble covenants to hold the City harmless for any
damages or claims for injuries, either to employees, subscribers,
or for any injury to property, or to any other person or persons
arising out of the joint use by TV CAble of the poles owned by the
City and utilized under this agreement or due to the proximity of
the wires, cables or fixtures owned or utilized by TV Cable as
contemplated within this contract.
10. It being further understood and agreed by the parties
herein that TV CAble shall not sell, assign or dispose of this
-3-
agreement or any rights or interest thereunder without the
written consent of the City, however, that nothing herein shall
prevent or limit the right of TV CAble to mortgage. any or all of
its rights, property or franchise. However, any collusion by TV
Cable in an attempt to assign or otherwise dispose of this contract
or any rights or interest thereunder by any sham or fraudulent
mortgage shall automatically cancel this contract as to the City,
but shall not relieve TV CAble of all liability thereunder.
11. This contract shall not limit or affect TV Cable's
liability for assessment and payment of taxes lawfully levied on
its property or for payments as provided for in the franchise
between said parties. It being further understood and agreed
that this pole contract is likewise in contemplation and in
connection with the franchise granted by the City to TV Cable.
12. It being further understood and agreed that the cancel-
lation or termination of the franchise granted by the City to
TV Cable, reference hereto made for all intent and purposed,
shall automatically cancel this pole contract except to all
liability owed by TV Cable to the City for claims or pole rentals
due the City on the termination of said _ordinance and pole contract;
however, it being further understood and agreed that during the
term of the franchise that should it become undesirable because
of engineering requirements for TV Cable tb have its wires, cables
and attachments on the City's poles, or that TV Cable has violated
this contract and/or its franchise, that TV Cable shall remove said
wires, cables and attachments from said poles within six (6) months
after written notice by the City to TV Cable of Sanger, at its
registered post office address at Texas.
WITNESS OUR HANDS, this the �L��� day of 1983.
ATTEST:
ATTEST:
ecretary
Ralph
i�i� G
. Cole, Mayor
TV Cable of Sanger
BY:
President
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ITS` ECT'�
THE STATE OF TEXAS �('
COUNTY OF DENTON �
BEFORE ME, the undersigned, a Notary Public in and for said
County and State, on this day personally appeared Ralph B. Cole,
Mayor of the City of Sanger, Texas, known to me to be the person
and officer whose name is subscribed to the foregoing instrument,
and acknowledged to me that the same was the act of the said CITY
OF BANGER, TEXAS, a municipal corporation, and that he executed
the same as the act of such corporation for the purposes and
consideration therein expressed, and in the capacity therein
stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the � _
day of 1983.
THE STATE OF TEXAS
COUNTY OF DENTON
BEFORE ME, the
County and State, o
Denton County, Texas.
My Commission Expires:-3/-��
MARY :10. STOVER
Notary Public
My Commission Expired March 31,.�9��
I�
undersigned, a Notary
n this day personally
Public in
appeared_
and for said
President of TV Cable of Sanger, known to me to be
the person and officer whose name is subscribed to the foregoing
instrument, and acknowledged to me that the same was the act of
the said TV CABLE OF SANGER, a Texas Corporation, for the purposed
and consideration therein expressed, and in the capacity therein
stated.
GIVEN
day of
UNDER MY HAND AND SEAL OF OFFICE, this the
. 1983.
Notary Public in and for
Denton County, Texas.
My Commission Expires