HomeMy WebLinkAbout16133 ORD - 03/25/19811.F.aRi—�a
AN ORDINANCE
GRANTING A FRANCHISE TO ATHENA CABLEVISION OF CORPUS
CHRISTI, INC., TO OPERATE AND MAINTAIN A COMMUNITY
ANTENNA TELEVISION SYSTEM IN THE CITY FOR A TERM NOT TO
EXCEED FIFTEEN (15) YEARS; SETTING FORTH CONDITIONS
ACCOMPANYING THE GRANT OF FRANCHISE; PROVIDING FOR CITY
REGULATION AND USE OF THE COMMUNITY ANTENNA TELEVISION
SYSTEM; PRESCRIBING PENALTIES FOR VIOLATION OF THE
FRANCHISE PROVISIONS; AND PROVIDING FOR PUBLICATION.
WHEREAS, the terms of the franchise granted to Athena Cablevision
of Corpus Christi, Inc. (hereinafter referred to as "Athena") to operate a
community antenna television system within the City of Corpus Christi
(hereinafter referred to as "City") expired on November 17, 1979; and
WHEREAS, on October 17, 1979 the City Council notified Athena that
its franchise would expire on November 17, 1979 and granted permission for
that company to operate after November 17, 1979 on a week -to -week basis not
to exceed six months; and
WHEREAS, on May 14, 1980 the City Council granted Athena
permission to continue to operate after May 17, 1980 on a week -to -week basis
during the consideration of a franchise renewal; and
WHEREAS, on December 8, 1980 Athena submitted to the City a
proposal for a renewal of the franchise which proposal was subsequently
expanded upon in a revised proposal on February 18, 1981; and
WHEREAS, on February 26, 1981 Athena verbally modified the
February 18 proposal to include increased channel capacity and community
service which verbal proposal was confirmed by a written letter on March 6,
1981; and
WHEREAS, it is the intent that an agreement be entered into between
the City and Athena to renew said franchise with certain modifications
incorporated herein; and
WHEREAS, the City has conducted public and open discussions
affording the public reasonable opportunity to be heard and such discussions
have included analysis and consideration of the technical ability, financial
condition, legal qualification and general character of the franchisee; and
WHEREAS, after such consideration the City has agreed to allow
Athena within 30 days from the date of final passage of this franchise to either
accept or reject the terms and conditions; and
4_6133
M1CROFILMECt.
'SEP 27 1984
WHEREAS, upon receipt of the franchise by Athena and within the 30
days from after the date of final passage of the franchise ordinance, Athena
has agreed to accept the terms and conditions of the franchise;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF CORPUS CHRISTI, TEXAS:
SECTION 1. SHORT TITLE. This ordinance shall be known and may
be cited as the "Corpus Christi Cable Television Franchise".
SECTION 2. DEFINITIONS. For the purpose of this ordinance, the
following terms, phrases, words, and their derivations shall have the meaning
given herein. When not inconsistent with the context, words used in the
present tense include the future, words in the plural include the singular
number, words in the singular number include the plural number. The word
"shall" is always mandatory and not merely directory.
(1) "BASIC SERVICE" shall mean all communication services provided
by the grantee including the delivery of broadcast signals and programming
originated over the cable system, covered by the regular monthly charge paid
by subscribers, excluding optional services for which a separate charge is
made.
(2) "CITY" is the City of Corpus Christi, Texas as it now exists and
any area annexed thereto.
(3) "CITY MANAGER" is the person or his designated agent
responsible to see that all terms and conditions of the franchise are met and
performed and in case of any violation take such action as necessary and
proper to enforce or terminate the franchise.
(4) "CLASS IV CHANNEL" shall mean a signaling path provided by a
cable television system to transmit signals of any type from a subscriber
terminal to another point in the cable television system.
(5) "CONVERTER" shall mean an electronic device, which converts
signals to a frequency not susceptible to interference within the television
receiver of a subscriber, and by an appropriate channel selector also permits a
subscriber to view or receive all signals delivered at designated converter dial
locations.
(6) "COUNCIL" is the City Council of Corpus Christi, Texas.
(7) "COMMUNITY ANTENNA TELEVISION SYSTEM", hereinafter
referred to as "CATV System" or "System", means a system of coaxial cables or
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other electrical conductors and equipment used or to be used primarily to
receive audio and video signals, directly or indirectly off -the -air, by
microwave, and by local origination, and to transmit them to subscribers for a
fee.
(8) "FCC" shall mean the Federal Communication Commission or any
legally appointed, designated or elected agent or successor.
(9) "GRANTEE" shall mean Athena Cablevision of Corpus Christi, Inc.
or anyone who succeeds Athena in accordance with the provisions of this
franchise.
(10) "GRANTOR" shall mean the City of Corpus Christi.
(11) "GROSS ANNUAL REVENUES" shall mean all revenues derived
directly or indirectly by the Grantee, its affiliates, subsidiaries, parent, and
any person in which the Grantee has a financial interest, from providing cable
television services within the City. The term shall include, but not be limited
to, installation and reconnection fees, subscriber fees for basic service,
charges for lease of channels, revenue from advertising, and revenue from pay
television service, converter sales or rentals, studio rental, and production
equipment and personnel fees. The term shall not include revenues received
from any taxes on services furnished by the Grantee which are unposed directly
on any subscriber or user by any city, state, or other governmental unit and
collected by the Grantee for such governmental unit.
(12) "INSTALLATION" shall mean the connection of the system from
feeder cable to subscribers' terminals.
(13) "LOCAL STATION" is a television broadcasting station required
by FCC regulations to be carried in the Corpus Christi metropolitan area.
(14) "PERSON" shall mean any individual firm, partnership,
association, corporation, company, or organization of any kind.
(15) "PAY TELEVISION" shall mean the delivery over the CATV
system of video and audio signals in intelligible form to subscribers for a fee or
charge over and above the charge for basic service, on a per program, per
channel, or other subscription basis.
(16) "PROPOSAL" shall mean Athena Cablevision Corporation's
Proposal to the City of Corpus Christi on February 18, 1981, as revised by
written letter on March 6, 1981, and attached hereto as Exhibit "A".
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(17) "SUBSCRIBER" shall mean a recipient of services which are
delivered over the CATV System.
(18) "STREET" shall mean the surface of and the space above and
below any public street, road, highway, freeway, lane, path, public way or
place, sidewalk, alley, boulevard, parkway, drive or other easement now or
hereafter held by the City and shall include other easements or rights of way
as shall be now held or hereafter held by the City.
(19) "USER" shall mean a person utilizing a cable television system
channel for purposes of production or transmission of materials to subscribers.
SECTION 3. GRANT OF NONEXCLUSIVE AUTHORITY.
A. There is hereby granted by the City to the Grantee the right
and privilege to construct, erect, operate and maintain, in, upon, along,
across, above, over and under the streets, alleys, easements, public ways and
places now laid out or dedicated, and all extensions thereof, and additions
thereto, in the City, poles, wires, cables, underground conduits, manholes,
and other television conductors and fixtures necessary for the maintenance and
operation in the City of a CATV system for the interception, sale and
distribution of audio and video signals, subject to the conditions herein set
forth.
B. The right to use and occupy said streets, alleys, easements,
public ways and places for the purposes herein set forth shall not be exclusive,
and the City reserves the right to grant similar use of said streets, alleys,
public ways and places, to any person at any time during the period of this
franchise.
SECTION 4. FRANCHISE TERRITORY. The franchise is for the
present territorial limits of the City and for any area henceforth added thereto
during the term of the franchise.
SECTION 5. COSTS TO THE GRANTEE. Costs to be borne by the
Grantee for the franchise renewal shall include all costs incurred by the City in
its franchise renewal study, evaluation, and preparation, not to exceed Twenty
Thousand Dollars ($20,000). Grantee shall, in addition, pay all costs of
publication of this ordinance.
SECTION 6. DURATION AND ACCEPTANCE OF FRANCHISE.
A. The franchise and the rights, privileges and authority hereby
granted shall take effect and be in force ten days after final passage thereof,
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or upon acceptance by the Grantee, which ever is later, and shall continue in
force and effect for a term not to exceed fifteen (15) years, provided that
within thirty (30) days after the date of final passage of the franchise the
Grantee shall file with the City Secretary its unconditional acceptance of the
franchise and promise to comply with and abide by all its provisions, terms,
and conditions. Such acceptance and promise shall be in writing duly executed
and sworn to by the appropriate officers of the Grantee and countersigned by
the appropriate officer of Athena Communications Corporation before a notary
public or other officer authorized by law to administer oaths.
B. The franchise shall be for a term of five (5) years unless sooner
terminated by default as described herein. The franchise shall be extended for
a cumulative term of fifteen years from the date of final passage of this
ordinance provided that Grantee has completed and activated Phase 1 and Phase
2 of the entire system rebuild as described in Exhibits "B" and "C" which are
incorporated herein by reference, on or before May 1, 1986. Grantee shall
notify the City Manager in writing immediately upon completion and activiation
of each such phase. Notwithstanding any other provision of this ordinance, the
franchise shall not be extended for a cumulative term of fifteen (15) years as
provided above until the City shall have been given a reasonable period of time
(during which time the franchise will continue) commencing May 1, 1986, and
expiring no later than June 1, 1986, in order to make its determination whether
Grantee has not fully completed and activated the Phase 2 rebuild on or before
May 1, 1986. Should the City Council find that the Grantee has not fully and
timely completed and activated the Phase 2 rebuild, the term of the franchise
will immediately cease and the franchise shall terminate, unless extended for
some additional period as may be determined by the City Council.
SECTION 7. COMPLIANCE WITH APPLICABLE LAWS AND ORDINANCES.
A. Grantee shall, at all times during the life of its franchise
hereunder, be subject to the lawful exercise of the police power by the City
and to such reasonable regulations as the City may hereafter establish by
resolution or ordinance.
B. Not withstanding any other provisions of this franchise to the
contrary, the Grantee shall at all times comply with all laws and regulations of
the state and federal government or any administrative agency thereof.
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Provided, however, if any such state or federal law or regulation shall require
or permit the Grantee to perform any service or shall prohibit the Grantee from
performing any service, in conflict with the terms of this franchise or of any
law or regulation of the City, then as soon as possible following knowledge
thereof, the Grantee shall notify the City Manager of the point of conflict
believed to exist between such regulation or law and the laws or regulations of
the City or this franchise. If the City Manager determines that a material
provision of this franchise is affected by any subsequent action of the state or
federal government, the City shall have the right to modify any of the
provisions herein to such reasonable extent as may be necessary to carry out
the full intent and purpose of this agreement.
SECTION 8. SECURITY FUND.
A. Within thirty (30) days after the effective date of the franchise,
the Grantee shall deposit the sum of Fifty Thousand Dollars ($50,000) into a
bank account, established and controlled by the City, and Grantee shall
maintain on deposit throughout the term of this franchise, said sum of Fifty
Thousand Dollars ($50,000) as the security for the faithful performance by
Grantee of all the provisions of this franchise, and compliance with all orders,
permits, and directions of any officer of the City having jurisdiction over its
acts or defaults under this franchise and the payment by the Grantee of any
claims, liens and taxes due the City which arise by reason of the rebuild,
operation or maintenance of the system. Grantee shall have the right to earn
interest on funds deposited in the Security Fund.
B. Within thirty (30) days after notice to the Grantee that any
amount has been withdrawn by the City from the Security Fund pursuant to
subdivision (A) of this Section, the Grantee shall deposit a sum of money
sufficient to restore the Security Fund to the original $50,000 amount. In the
event that the Grantee fails to fully restore the Security Fund to the original
amount within the 30 -day time period, Grantee shall forfeit all funds then
remaining in the Security Fund and the City may at its option revoke the
franchise. If the City does not revoke the franchise, Grantee must re-establish
the Security Fund in the manner provided in subdivision (A) of this Section.
C. If the Grantee fails, after ten (10) days notice to pay to the City
any taxes due and unpaid, or, fails to repay to the City, within such ten (10)
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days, any damages, costs, or expenses which the City shall be compelled to
pay by reason of any act or default of the Grantee in connection with this
franchise; or fails after thirty (30) days notice by the City of such failure to
comply with any provision of the franchise which the City reasonably determines
can be remedied by an expenditure from the Security Fund, the City may
immediately withdraw the amount thereof, with applicable interest and penalty,
from the Security Fund. Upon such withdrawal, the City shall notify the
Grantee of the amount and date thereof.
D. The Security Fund deposited pursuant to this Section shall
become the property of the City in the event that the franchise is cancelled by
reason of the default of the Grantee or revoked for cause. The Grantee,
however, shall be entitled to the return of such Security Fund, or portion
thereof, as remains on deposit at the expiration of the term of the franchise, or
upon termination of the franchise at an earlier date provided that there is then
no outstanding default on the part of the Grantee.
E. The rights reserved to the City with respect to the Security
Fund are in addition to all other rights of the City whether reserved by the
franchise or authorized by law, and no action, proceeding, or exercise of a
right with respect to such Security Fund shall affect any other right the City
may have.
SECTION 9. LIABILITY AND INDEMNIFICATION.
A. The Grantee shall, upon its acceptance of this franchise, and at
all times during the existence of this franchise, maintain in full force and
effect, at its own expense, a general comprehensive liability insurance policy,
in protection of the City of Corpus Christi, its officers, board, commissions,
agents and employees, in a company approved by the City Manager and in a
form satisfactory to the City Attorney, insuring the Grantee and the City
against liability for loss or damage for personal injury, death, and property
damage, occasioned by the operations of Grantee under such franchise, with
initial minimum liability limits of $500,000 for personal injury or death of any
one person and $1,000,000 for personal injury or death of two or more persons
in any one occurrence, and $300,000 for damage to property resulting from any
one occurrence and such limits may be changed by written notice to Grantee
from time to time by the City Council to reflect changing liability limits. The
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Grantee shall notify the City Attorney immediately of any litigation that may
cause a claim to be made against this insurance.
B. The insurance policy shall contain the provision that written
notice of cancellation or reduction in coverage of said policy shall be delivered
to the City ten (10) days in advance of the effective date thereof; and such
policy shall include the City as an additional named insured.
C. No franchise granted under this ordinance shall be effective
unless or until the policy of insurance as required in this section has been filed
with the City Secretary.
D. Within thirty (30) days after the award of this franchise, the
Grantee shall obtain and maintain at its cost and expense, and file with the
City Secretary, a bond acceptable to the City Attorney in a company authorized
to do business in the State of Texas in the amount of Two Hundred Thousand
Dollars ($200,000) to guarantee the timely rebuild and full activation of Phase 1
and Phase 2 of the cable television system. In addition to the provisions of
Section 22(B), the bond shall provide the following condition: There shall be
recoverable by the City, jointly and severally from the principal and surety,
the sum of $200,000 upon written notice from City that Grantee has failed to
satisfactorily complete the rebuild of Phase 1 and Phase 2 and fully activate the
cable television system throughout the franchise area. Any extension to the
prescribed time limit must be expressly authorized by the City Council. Such
extension shall be authorized only when the City Council finds that such
extension is necessary and appropriate due to causes beyond the control of the
Grantee. Such bond shall be terminated after the City Council finds through
resolution that the Grantee has satisfactorily completed both Phase 1 and Phase
2 of the system rebuild and activation of the entire system to the expanded
channel capacity. The rights reserved to the City with respect to such bond
are in addition to all other rights of the City, whether reserved by this
ordinance or authorized by law, and no action, proceeding, or exercise of a
right with respect to such bond shall affect any other rights the City may
have. Such bond shall contain the following endorsement:
"It is hereby understood and agreed that this bond may not be
cancelled by the surety, nor the intention not to renew be exercised
by the surety until sixty (60) days after receipt by the City, by
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registered mail, of a written notice of such intent to cancel or not to
renew."
E. Grantee shall, at its sole cost and expense, fully indemnify,
defend and hold harmless the City, its officers, boards, commissions and
employees against any and all claims, suits, actions, liability, and judgments for
damages (including but not limited to expenses for reasonable legal fees and
disbursements and liabilities assumed by the City in connection therewith):
(1) To persons or property, in any way arising out of or through the
acts or omissions of Grantee, its servants, agents or employees, or to which
Grantee's negligence shall in any way contribute;
(2) Arising out of any claim for invasion of the right of privacy, for
defamation of any person, firm or corporation; or for the violation or
infringement of any copyright, trademark, trade name, service mark or patent,
or of any other right of any person, firm or corporation (excluding claims
arising out of or relating to City programming); and
(3) Arising out of the Grantee's failure to comply with the provisions
of any federal, state, or local statute, ordinance or regulation applicable to
Grantee in its business hereunder.
The foregoing indemnity is conditioned upon the following: The City
shall give Grantee prompt notice of the making of any claim or the
commencement of any action, suit or other proceeding covered by the provisions
of this section. Nothing herein shall be deemed to prevent the City from
cooperating with Grantee and participating in the defense of any litigation by
City's own counsel at its sole cost and expense. No recovery by the City of
any sum by reason of the Security Fund required in Section 8 hereof shall be
any limitation upon the liability of the Grantee to the City under the terms of
this section, except that any sum so received by the City shall be deducted
from any recovery which the City might have against the Grantee under the
terms of this section.
SECTION 10. DISTRIBUTION, DISCRIMINATION, AND RIGHTS OF
INDIVIDUALS.
A. The Grantee shall not grant any preference to any person or
subject any person within any class of subscribers to any discrimination as to
rates, charges, service, service facilities, rules or regulations or in any other
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respect; provided, however, that this section shall not be deemed to prohibit
bona fide promotional activities by the Grantee.
B. Grantee shall not deny service, deny access, or otherwise
discriminate against subscribers, channel users, or general citizens on the basis
of race, color, religion, national origin, or sex. Grantee shall comply at all
times with all other applicable federal, state and local laws and regulations, and
all executive and administrative orders relating to nondiscrimination which are
hereby incorporated and made part of this ordinance by reference.
C. Grantee shall strictly adhere to the equal employment opportunity
requirements of the FCC, state and local regulations, and as amended from time
to time.
D. No signals of a Class IV cable communications channel shall be
transmitted from a subscriber terminal for purposes of monitoring individual
viewing patterns or practices without the express written permission of the
subscriber. The request for such permission shall be contained in a separate
document with a prominent statement that the subscriber is authorizing the
permission in full knowledge of its provisions. Such written permission shall be
for a limited period of time not to exceed one (1) year, which shall be
renewable at the option of the subscriber. No penalty shall be invoked for a
subscriber's failure to provide or renew such an authorization. The
authorization shall be revokable at any time by the subscriber without penalty
of any kind whatsoever. Such authorization is required for each type of
classification of Class IV cable television activity planned; provided however,
that the Grantee shall be entitled to conduct system -wide or individually
addressed "sweeps" for the purpose of verifying system integrity, controlling
return -path transmission, or billing for pay service.
E. The Grantee, or any of its agents or employees, shall not,
without the specific written authorization of the City or of the subscriber
involved, sell, or otherwise make available to any party:
(1) lists of the names and addresses of such subscribers, or
(2) any list which identifies the viewing habits of subscribers.
F. All programs of local TV stations and local FM radio stations
carried by the Grantee shall be carried in their entirety as received with
announcements and advertising and without additions.
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SECTION 11. SIGNAL QUALITY REQUIREMENTS.
A. The Grantee 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.
B. The Grantee shall transmit signals of adequate strength to
produce good pictures with good sound at all outlets without causing cross -
modulation in the cables or interfering with other electrical or electronic
systems.
C. Minimum technical standards will be maintained as outlined in
Exhibit "A", Form I, as proposed for the 26 channel capacity system and as set
forth in Grantee's revised Form I for the 54 channel capacity system.
D. The Grantee shall limit failures to a minimum by locating and
correcting malfunctions promptly, but in no event longer than forth -eight (48)
hours after notice. Whenever service is interrupted to any subscriber for any
period of time in excess of 48 hours, the subscriber shall receive a rebate of
one -thirtieth (1/30th) of the subscriber's monthly service fee for each day or
part thereof between the end of the 48 hours and the time service is restored
to proper standards.
SECTION 12. OPERATION AND MAINTENANCE OF SYSTEM.
A. The Grantee shall render efficient service and make repairs
properly and promptly, with normal service calls made within 24 hours of
customer call. In no event will service calls be delayed beyond the next
business day following said 24-hour period. After normal business hours,
service calls will be handled by a dispatch service via telephone or a two-way
radio to "stand-by" technicians. Experienced engineering staff will be available
to work with "stand-by" technicians in helping solve more difficult problems.
Interruption of service will be only for good cause and for the shortest time
possible. Such interruptions, insofar as possible, shall be preceded by notice
and shall occur during period of minimum use of the system.
B. The Grantee shall maintain an office in the City which shall be
open during all usual business hours, having adequate listed local, toll free
telephone service and be so operated that complaints and requests for repairs
or adjustments may be received on a 24-hour basis. The Director of Public
Utilities shall be the responsible City official to see that customer service
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complaints are properly handled. As subscribers are connected to the system,
the Grantee shall, by appropriate means, such as a card or brochure, furnish
information concerning the procedures for making inquiries or complaints. Such
procedure shall include the title, telephone number, and address of the person
employed by the Grantee to whom such inquiries or complaints should be
addressed. In addition, the information shall specify that the City's Director of
Public Utilities is responsible for intervening in customer complaints which in
the judgment of the customer have been unsatisfactorily handled with the
telephone number and address of that office.
C. All correspondence to and from subscribers, including customer
complaints, will be time and date stamped and retained by the Grantee for at
least three years. A complaint form will be completed for each complaint
containing details about the complaint and the action taken. Such forms will be
time and date stamped and kept by the Grantee for at least three years. A
form will be made out for each service call to a subscriber's residence
containing a complete record of the service call. Details of the time taken, time
dispatched and time completed will be stamped on the form. Such forms will be
retained by the Grantee for at least three years. Post cards for customer
comments will be sent to each subscriber who has had a service call for an
evaluation of how the Grantee has responded to the complaint. Such cards will
be retained by the Grantee for at least three years.
D. When there have been a pattern of complaints made, or where
there exists other evidence, which, in the judgment of the City, casts doubt on
the reliability or quality of cable service, the City shall have the right and
authority to require the Grantee to test, analyze, and report on the
performance of the system. Grantee shall fully cooperate with the City in
performing such testing and shall prepare results and a report, if requested,
within thirty (30) days after notice. Such report shall include the following
information:
(1) The nature of the complaint or problem which precipitated the
special tests.
(2) What system component was tested.
(3) The equipment used and procedures taken in testing.
(4) The method, if any, in which such complaint or problem was
resolved.
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(5) Any other information pertinent to said tests and analysis which
may be required.
The City may require that tests be supervised by a professional
engineer not on the permanent staff of the Grantee. The engineer should sign
all records of special tests and forward to the City such records with a report
interpreting the results of the tests and recommending actions to be taken.
The City's rights under this subsection shall be limited to requiring tests,
analyses, and reports covering specific subjects and characteristics based on
said complaints or other evidences when and under such circumstances as the
City has reasonable grounds to believe that the complaints or other evidence
require that tests be performed to protect the public against substandard cable
service. City shall provide Grantee in writing its grounds for requesting such
tests.
E. The service furnished by the Grantee hereunder to said City and
its inhabitants shall be first class in all respects and shall be such as will
insure the least danger to life and property. Such service shall at all times
conform to those technical standards submitted by the Grantee as part of its
revised proposal marked Exhibit "A" and incorporated herein by reference as
well as FCC technical standards, and other applicable laws, ordinances, and
construction standards. In addition, Grantee shall provide the City, upon
request, with a written report of the results of Grantee's annual proof of
performance tests conducted pursuant to FCC standards and requirements.
F. All installations made by the Grantee shall be in good,
substantial, safe condition and maintained in such condition at all times. The
Grantee shall make no excavations in the street, alleys, and public places
without first procuring a written permit from the office of the City's Director of
Engineering and Physical Development, and all work of such kind shall be done
under the supervision of the Director and so as to meet the approval of the
Director. No charge will be made by the City for said permit.
G. All installations and connections of wires, cables, and lines from
Grantee's equipment and facilities to subscribers' residences and buildings shall
be made and constructed so that openings shall be waterproof and inaccessible
to insects and vermin.
11. The Grantee shall install, at the subscriber's request, an
efficient antenna switch by which the subscriber may easily and conveniently
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switch the television receiver from the cable input to an antenna for direct
off -the -air reception and Grantee shall at the time of service connection so
advise the subscriber in writing that such a switch is available. Grantee may
charge for this service not more than Grantee's direct purchase price of such
switch.
I. The Grantee shall continue, through the term of this franchise, to
maintain quality of service and meet operational and technical standards.
Should the City find that the Grantee has failed to maintain adequate quality of
service and meet operational and technical standards, it shall specifically
enumerate such improvements to be made and so notify the Grantee in writing.
Failure to make such improvements within three (3) months of the date of
notification shall be deemed a violation of the franchise for which civil penalties
provided in Section 25(E) are applicable.
SECTION 13. SAFETY REQUIREMENTS.
A. The Grantee shall at all times employ ordinary care and shall
install, maintain and use commonly accepted methods and devices for preventing
failures and accidents which are likely to cause damage, injuries or nuisances to
the public.
B. Grantee shall install and maintain its wires, cables, fixtures, and
other equipment in accordance with the requirements of the National Electrical
Safety Code (National Bureau of Standards); National Electrical Code (National
Bureau of Fire Underwriters); Bell System Code of Pole Line Construction; and
any applicable City Code. The installations shall not interfere or conflict with
any installations of the City or of any other utility serving the City.
C. Grantee shall at all times keep and maintain in a safe, suitable,
substantial condition, and in good order and repair all structures, lines,
equipment and connections in, over, under, and upon the streets, sidewalks,
alleys, and public ways or places of the City, wherever situated or located.
D. Grantee shall maintain a force of one or more residing agents or
employees at all times and shall have sufficient employees to provide safe,
adequate, and proper services for its facilities.
SECTION 14. CONDITIONS ON STREET OR EASEMENT OCCUPANCY
AND COMMON USER OR LEASE OF FACILITIES.
A. Grantee shall use the poles, lines, conduits, cables or other
facilities maintained by the telephone and electric companies when and where
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such facilities can be obtained, provided satisfactory agreements can be entered
into with said utility companies, in lieu of_ constructing its own poles, in order
to carry its cables and conduits and other equipment that may be necessary in
order to conduct its business in the City. In such case, Grantee shall file a
certificate with the City Secretary which will recite that such an agreement has
been entered into, setting forth the terms and duration of the agreement.
B. Grantee shall not place poles or fixtures where the same will
interfere with any gas, electric or telephone fixtures, water hydrant or main,
or sanitary or storm sewer and all such poles or other fixtures placed in any
street shall be placed at the outer edge of the sidewalk and inside the curb
line, and those placed in alleys shall be placed as close as physically
practicable to a side lot line of the lots abutting on said alley, and then in
such a manner as not to interfere with the usual travel on said streets, alleys
and public ways. Grantee shall be required to use existing poles, except where
service is provided by underground installation.
C. In any subdivision of the City where telephone and electric lines
and cables are presently existing and serving said subdivision and are located
below ground, Grantee shall arrange to place its cables and wires below
ground. Rear yard easements shall be used wherever feasible. Street
right -of -Way will be used only with extreme care and as approved by the
Director of Engineering and Physical Development. Junction boxes, pedestals,
or other structures shall be located so that markings are on the private
property side rather than the street right-of-way. Where said telephone and
electric lines and cables are located above ground, Grantee may arrange to
place its cables and wires below ground, with the approval of the Director of
Engineering and Physical Development.
D. In any case of disturbance of pavement, sidewalk, driveway or
any portion of the public right-of-way, Grantee shall submit to the satisfaction
of the Director of Engineering and Physical Development plans and specifications
for such work for approval. Grantee shall in a manner required by and
approved by the Department of Engineering and Physical Development, replace
and restore all paving, sidewalks, driveways or surface of any street or alley
disturbed, in as good a condition as before said work was commenced, and shall
maintain the restoration in an approved condition for a period of one (1) year.
15
Upon installation of underground cable system, all streets having concrete,
hot -mix asphalt, or inverted penetration surface with curb and gutter
construction, shall be bored and cables installed in casing.
E. In the event that at any time during the period of this franchise
the City shall lawfully elect to alter, or change the grade of any street, alley,
or other public way, or vacate or abandon the same, Grantee, upon reasonable
notice by the City, shall forthwith remove, relay or relocate its poles, wires,
cables, underground conduits, manholes and other telephone fixtures, at its
own expense. City shall have the right, at all times, to require Grantee to
change the location of any pole, conduit, line or facility when, in the opinion of
the Director of Engineering and Physical Development, the public convenience
requires such change, and all expenses thereof shall be paid by Grantee. In
the event a street or other public way is abandoned, Grantee shall remove all
of its facilities therefrom, and restore the premises without delay or cost to the
abutting owners or City.
F. The Grantee's use of existing utility easements, streets, alleys
and public ways may be prohibited in those instances where, in the opinion of
the Director of Engineering and Physical Development, said easements, streets,
alleys and public ways are overcrowded due to the present existence of utility
systems and equipment.
G. The Grantee's use of utility easements, streets, alleys and public
ways shall be subordinated to the use of said easements by the presently
existing utilities and the Grantee herein shall, in the absence of gross
negligence and willful conduct of existing utilities companies, hold the City
harmless for any damage to Grantee's wires and equipment located in said
easements in the event same are damaged as a result of maintenance operations
performed by the City on the heretofore existing facilities, and further, in the
event same are damaged by the future installation, construction, extension,
addition, maintenance or repair of like facilities by the City or utility
companies.
H. Grantee shall, upon request of any person holding a building or
moving permit issued by the City, temporarily raise or lower its wires to permit
the moving of buildings, with the direct cost to be borne by the mover. The
Grantee shall be given a minimum of forty-eight (48) hours advance notice to
arrange for such temporary wire changes.
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I. Grantee shall fully comply with all zoning and building regulations
of the City, and nothing herein contained shall be construed to constitute a
waiver of any such regulations.
J. Should Grantee refuse or fail to remove or relocate its lines,
poles, conduits or other facilities as provided in this or any other provision of
this ordinance, City shall have the right to do the work, or cause it to be
done, and the cost thereof shall be chargeable to Grantee and collection may be
made by court action or otherwise.
K. Grantee shall obtain all necessary permits from the Texas
Department of Highways and Public Transportation, the Corps of Engineers, or
any other agency having jurisdiction over streets, levees and other public ways
in the City, prior to any use of or construction in such streets and other
public ways.
L. Grantee shall agree to replace or restore to its original condition,
or to a condition equal thereto, all privately and publicly owned property
damaged as a result of Grantee's installation of or service to its equipment.
M. The Grantee shall have the authority to trim trees overhanging
any streets in the franchise area so as to prevent branches from coming in
contact with the Grantee's wires and cables, except that at the option of the
City, such trimming may be done by it or under its supervision and direction
at the Grantee's expense.
N. Failure to comply with the provisions in this section shall be
subject to the civil penalties as provided in Section 25(E).
SECTION 15. EXTENSION OF SERVICE.
A. Line Extensions .
The Grantee shall be required to extend its system pursuant to
the following requirements:
(1) Grantee must extend and make cable television service available to
every dwelling unit within one (1) year to any unserved area reaching the
minimum density of at least 40 dwelling units per street mile, as measured from
the existing system.
(2) Grantee must extend and make cable television service available to
every dwelling unit in all unserved areas being subdivided and platted, having
at least 40 dwelling units planned per street mile, as measured from the existing
17
system, and shall extend its system simultaneously with the installation of
utility lines.
(3) Grantee must extend .and make cable television service available to
any isolated resident requesting connection at the standard connection charge,
if the connection to the isolated resident would require no more than a standard
two hundred fifty (250) foot aerial drop line.
B. Early Extension.
In areas not meeting the requirements for mandatory extension of
service, Grantee shall provide, upon the request of a potential subscriber
desiring service, an estimate of the costs required to extend service to said
subscriber. Grantee shall then extend service upon request of said potential
subscriber. Grantee may require advance payment or assurance of payment
satisfactory to Grantee. The amount paid by subscriber for early extension
shall be nonrefundable, and in the event the area subsequently reaches the
density required for mandatory extension, such payments shall be treated as
consideration for early extension.
C. New Development Undergrounding.
In cases of new construction or property development where
utilities are to be placed underground, the developer or property owner shall
give Grantee reasonable notice of such construction or development, and of the
particular date on which open trenching will be available for Grantee's
installation of conduit, pedestals and/or vaults, and laterals to be provided at
Grantee's expense. Grantee shall also provide specifications as needed for
trenching.
Costs of trenching and easements required to bring service to the
development shall be borne by the developer or property owner; except that if
Grantee fails to install its conduit, pedestals and/or vaults, and laterals within
five (5) working days of the date the trenches are available, as designated in
the notice given by the developer or property owner, then should the trenches
be closed after the five day period, the cost of new trenching is to be borne
by Grantee. Except for the notice of the particular date on which trenching
will be available to Grantee, any notice provided to Grantee by City of a
pending plat shall satisfy the requirement of reasonable notice if sent to the
local general manager or system engineer of Grantee prior to the approval of
the plat.
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D. Special Agreements.
Nothing herein shall be construed to prevent Grantee from
serving areas not covered under this section upon agreement with developers,
property owners, or residents.
E. Violations.
Any violation of this section shall be considered a breach of the
terms of this ordinance for which the provisions of Section 25 shall apply as
determined by the City Council.
SECTION 16. OTHER BUSINESS ACTIVITIES.
A. Neither the Grantee, or its officers, employees, or agents shall
engage directly or indirectly in the sale, lease, repair or service of television
sets or receivers, other than the servicing of equipment owned by the Grantee
as a part of its transmission system. Neither the Grantee, nor its officers,
employees or agents shall suggest, recommend or single out any television sales
or service firm or business establishment to be patronized by its subscribers.
The Grantee shall exercise all reasonable influence on its officers, employees
and agents to require their compliance with this Section. Nothing hereunder
shall prohibit the Grantee, at cusomers request and without payment, from
examining and adjusting customer's receiver set to determine whether reception
difficulties originate in the set or in the Grantee's system. Grantee is
permitted to lease, maintain, and sell converters at cost to subscribers of the
system.
B. This franchise authorizes only the operation of the CATV system
as provided for herein, and does not take the place of any other franchise,
license, or permit which might be required by law, of the Grantee.
SECTION 17. CONTINUITY OF SERVICE MANDATORY.
A. It shall be the right of all subscribers to continue receiving
service insofar as their financial and other obligations to the Grantee are
honored. In the event that the Grantee elects to overbuild, rebuild, modify,
or sell the system, or the City gives notice of intent to terminate or fails to
renew this franchise, the Grantee shall act so as to ensure that all subscribers
receive continuous, uninterrupted service regardless of the circumstances.
In the event of a change of franchisee, or in the event a new
operator acquires the system, the Grantee shall cooperate with the City, new
franchisee, or operator in maintaining continuity of service to all subscribers.
19
During such period, Grantee shall be entitled to the revenues for any period
during which it operates the system, and shall be entitled to reasonable costs
for its services when it no longer operates the system.
B. In the event Grantee fails to operate the system for four (4)
consecutive days without prior approval of the City or without just cause, the
City may, at its option, operate the system or designate an operator until such
time as Grantee restores service under conditions acceptable to the City or a
permanent operator is selected. If the City is required to fulfill this obligation
for the Grantee, the Grantee shall reimburse the City for all reasonable costs
or damages in excess of revenues from the system received by the City that are
the result of the Grantee's failure to perform. In addition, Grantee shall be
subject to the civil penalties as provided in Section 25(J).
SECTION 18. PAYMENT TO THE CITY.
A. As compensation for the rights, privileges and franchise herein
granted, Grantee shall pay to the City for each three months or quarter during
the life of this franchise a fee of 4% of the gross annual revenue received by
the Grantee during that quarter, the payments to be made thirty (30) days
after expiration of each quarter, with each quarter ending on the last calendar
day of February, May, August, and November. A statement itemizing the
source of the gross annual revenues received by the Grantee during the
quarter shall be submitted each quarter with the franchise payment, itemizing
all revenue sources such as, but not limited to, installation revenues, basic
service revenues, pay television revenues, advertising revenues, leased channel
revenues, or any other gross revenue.
B. Grantee shall procure and pay for all occupational licenses and
permits required by the City and/or the State of Texas, and shall pay all ad
valorem and other taxes or charges levied on its system and facilities, and
nothing herein shall be construed to exempt Grantee from any such payments or
charges.
C. The City shall have the right to inspect the Grantee's income
records and the right to audit and to recompute any amounts determined to be
payable under this ordinance; provided, however, that such audit shall take
place within thirty-six (36) months following the close of each of the Company's
fiscal years. Any additional amount due to the City as a result of the audit
20
shall be paid within thirty (30) days following written notice to the Grantee by
the City which notice shall include a copy of the audit report.
D. In the event that any franchise payment or recomputed amount,
cost or penalty, is not made on or before the applicable dates heretofore
specified, interest shall be charged daily from such date at the annual rate of
ten percent (10%) .
E. Failure to comply with the provisions in this section shall be
subject to the civil penalties as provided in Section 25(E).
SECTION 19. TRANSFER OF FRANCHISE.
This franchise shall be a privilege to be held in personal trust by the
Grantee and cannot in any event be sold, transferred, leased, assigned or
disposed of, in whole or in part, either by force or involuntary sale, or by
voluntary sale, merger, consolidation or otherwise, without prior consent of the
City Council of the City expressed by ordinance, and then only under such
conditions as may be therein prescribed. The said consent of the City may not
be arbitrarily refused; provided, however, the proposed Assignee must show
financial responsibility and must agree to comply with all provisions of this
ordinance. Said consent of the City Council shall be required for any change
in the relationship of Athena Cablevision of Corpus Christi, Inc. to Athena
Communications Corporation, or to Tele-Communications, Inc.
SECTION 20. CHANGE OF CONTROL OF GRANTEE.
Prior approval of the City Council shall be required where ownership
or control of more than 10% of the right of control of Grantee is acquired by a
person or group of persons acting in concert. By its acceptance of this
franchise, the Grantee specifically grants and agrees that any such acquisition
occurring without prior approval of the City Council shall constitute a violation
of this franchise by the Grantee.
SECTION 21. MAPS, PLATS, AND REPORTS.
A. Grantee shall prepare and file a map with the Director of
Engineering and Physical Development setting forth its distributing system
located within the City, which map shall be corrected and brought up to date
from time to time thereafter, and shall be in sufficient detail to assure the City
of being currently advised as to the location of the cables and facilities of the
system.
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B. The Grantee shall file annually with the City Secretary not later
than one hundred twenty (120) days after the end of the Grantee's fiscal year,
a copy of its reports and those of its parent company to its stockholders (if it
prepares such a report), a detailed financial statement applicable to its
operations in Corpus Christi as well as its parent company, during the
preceding twelve-month period, a balance sheet and a statement of its
properties devoted to CATV operations, by categories, giving its investment in
such properties on the basis of original cost, less the applicable depreciation in
the CATV system in Corpus Christi as well as its parent company. These
reports shall be prepared or approved by a Certified Public Accountant and
there shall be submitted along with them such other reasonable information as
the City Council shall request with respect to the Grantee's properties and
expenses related to its CATV operations within the City.
C. The Grantee shall keep on file with the City Secretary a current
list of its shareholders and bondholders.
D. Copies of all petitions, applications, communications and reports
submitted by the Grantee to the Federal Communications Commission, Securities
and Exchange Commission, or any other federal or state regulatory commission
or agency having jurisdiction in respect to any matters affecting cable television
operations authorized pursuant to the franchise, shall be provided
simultaneously to the City.
SECTION 22. NUMBER OF CHANNELS AND TYPE OF SERVICE.
I. System channel capacity upgrade and rebuild.
A. Grantee's cable distribution system shall,, upon the acceptance of
the franchise renewal, be capable of carrying a minimum of twelve (12)
television channels. Through the acceptance of the franchise renewal, Grantee
will commit to the expansion of the system's channel capacity to increase the
channel capacity through an electronic rebuild of the existing system. The
rebuild will be accomplished in two phases.
(1) Phase 1 of the rebuild will expand the channel capacity from
the present 12 to a minimum of 26 channels and shall be fully
activated by no later than May 1, 1982.
(2) Phase 2 of the rebuild will expand the channel capacity to 54
channels and shall be fully activated by no later than May 1, 1986.
22
Through the expansion of the system's channel capacity, Grantee shall endeavor
to minimize disruptions of service to existing subscribers. The provisions
contained in Sections 11 and 12 pertaining to signal quality requirements and
interruptions of service are in no manner superseded by the expansion of
channel capacity requirement.
B. Penalties for delay of rebuild. The City may at its sole option
apply any or all of the following penalties in connection with Phase 1 of the
system rebuild:
(1) Civil monetary penalties as provided in Section 25(A).
(2) Forfeiture of the bond provided in Section 9(D).
(3) Reduction in the duration of the franchise on a month to
month basis for each month delay.
The City may at its sole option apply any or all of the following
penalties in connection with Phase 2 of the system rebuild:
(1) Not extend the term of the franchise beyond five (5) years
as provided in Section 6(B).
(2) Civil monetary penalties as provided in Section 25(B).
(3) Forfeiture of the bond provided in Section 9(D).
Except for the penalty of non -extension of the franchise term beyond
five (5) years, which shall be governed by the procedures set forth in Section
6(B), the City shall not impose upon Grantee the above described penalties for
delay of either the Phase 1 or Phase 2 rebuild unless Grantee has not fully and
satisfactorily completed and activated the applicable phase within thirty (30)
days following Grantee's receipt of the City's written notice stating its intention
to impose such penalties.
II. Programming.
Grantee shall broadcast without the necessity of a converter all
local stations, including but not limited to:
(1) KIII-TV (ABC affiliate)
(2) KRIS -TV (NBC affiliate)
(3) KZTV (CBS affiliate)
(4) KEDT-TV (PBS affiliate) or some other available educational
channel should KEDT no longer be available.
(5) KORO -TV (SIN affiliate) or some other station the primary
target audience of which is Spanish speaking should KORO no longer
be available.
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(6) A minimum of one independent channel.
(7) A minimum of two pay services.
(8) Time and weather, stock market data and news.
(9) Twenty-four hour emergency alert equipment.
In case of an emergency or disaster, the Grantee shall, upon request
of the City, make available its facilities to the City for communications use
during the emergency or disaster. In implementation thereof, Grantee shall
provide facilities at its head -in site for preemption and override of audio of all
television channels through telephonic interconnection by authorized public
officials, for the dissemination of announcements and instructions relative to
such emergency or disaster.
III. Access channels.
A. Upon completion of Phase 1, Grantee shall provide the following
access channel capacity:
(1) Governmental channel: One channel shall be made available
for use by the City of Corpus Christi at no cost to the City or its assignees.
The City may designate all or partial use in programming of this channel to a
non-profit corporation for which the City assumes responsibility as to such
assignment. Use of this channel and the provisions set forth in III(B) of this
section shall be applicable to shared programming on this channel whether by
the City or its assignees.
(2) Educational channel: Two channels shall be made available
to the local educational authorities. One channel shall be available for higher
educational access and the second channel shall be available for other public
educational entities; including local public independent school districts. The
educational authorities may designate all or partial use in programming of the
channel to a non-profit corporation for which the educational authorities assume
responsibility as to such assignment. Use of the channels and the provisions
set forth in III(B) of this section shall be applicable to shared programming on
the channels whether by the educational authorities or their assignees.
(3) Religious access channel: One channel shall be made
available to religious institutions on a time-shared basis.
(4) Public access channel: One specifically designated,
non-commercial public access channel shall be made available on a first come,
24
first serve, nondiscriminatory basis. The access channels delineated herein
shall be made available to the authorized access users at no cost, Access
channels shall be made available to other users as provided in Exhibit "A",
Form K.
B. Utilization of access channels. Grantee agrees that it shall utilize
all of its resources to encourage the development and utilization of the access
channels described herein. Grantee shall provide, maintain, and replace as
necessary equipment, studio facilities, and personnel specified in Exhibit "A",
Form K, to carry out this purpose. Failure to comply with this provision shall
subject the Grantee to the civil monetary penalties in Section 25(C).
Grantee shall be allowed to utilize the access channels for such other
purposes as it may deem appropriate whenever the users are not utilizing these
channels. Whenever any access channel is utilized less than an average of six
(6) hours per seven (7) day week for a period of two years following
completion of the Phase 1 of the rebuild, the City, at the request of the
Grantee or other interested user groups, may consider the reassignment of a
particular access channel. Requests for new access channels or shared uses of
channels also may be considered and acted upon by the City. Such requests
will only be considered by the City whenever an access channel is utilized at
least twenty-four (24) hours per seven (7) day week prime time (6:00 p.m. to
10:00 p.m.), eighteen (18) hours of which are non -repetitive programming. If
in the opinion of the City, the access channel has become fully utilized, as
herein described, the Grantee shall have six months in which to make a new
channel available for the same purpose, provided however, that the channel
expansion mandated by the subsection shall not exceed the channel capacity of
the system.
C. Penalities for failure to provide access channels and support shall
be deemed civil penalties as provided in Section 25(C).
D. Grantee shall cooperate fully with such organization as may be
designated by the City Council through separate ordinance for the governing of
access channel use. The City intends to insure the availability of the access
channels to the citizens of Corpus Christi for public and religious expression,
educational purposes, community information, and debate on public issues.
Until such time as such organization is established, Grantee shall require users
of such channels to follow the rules governing access channel utilization set
25
forth in Exhibit "A", Form K. Grantee and City agree that educational
authorities of the five independent school districts, colleges and junior colleges
will be granted sufficient time to formulate rules governing scheduling of
programming of respective access channels dedicated for use by the respective
educational community, and that such rules, when formulated, shall be utilized
by the Grantee and all parties involved. Such rules shall be subject to City
approval.
IV. Construction of office and studio facilities.
Grantee will construct permanent offices and studio facilities
within the corporate limits of the City. Grantee will complete construction of
such permanent offices and studio facilities on or before November 1, 1982, and
equipped as provided for in Exhibit A, Form K of a quality better than or
equivalent to the specified equipment. If Grantee has not completed
construction of said facilities by said date, Grantee shall be subject to the civil
penalties provided in Section 25(C).
V. Installation and service to public buildings, public schools, and
public institutions of higher education.
A. Grantee shall provide free installation of one outlet and monthly
basic service without charge to all public buildings and facilities as may now or -
hereinafter be designated by the City. Additional outlets shall be provided by
the Grantee at a cost of installation time and materials furnished by Grantee.
Notice of such designation will be transmitted to Grantee by the City Manager
B. On or before May 1, 1982, Grantee shall complete wiring and/or
satisfactory repair to wiring of all public school buildings constructed prior to
November 1, 1979, in each of the independent school districts located in Corpus
Christi. Upon the installation of the wiring and completion of repairs to
existing wiring in accordance with plans and specifications submitted by the
school district to Grantee in advance of such work, and after acceptance by the
individual school districts, Grantee will transfer maintenance and upkeep of the
installations to the individual school districts. Grantee shall provide without
charge a cable reception drop on or before May 1, 1982 to each presently
existing public school building constructed on or after November 1, 1979 as may
be designated by the individual school district or within 12 months for any
other newly constructed building. Grantee shall provide monthly basic service
26
to public school buildings without charge. Additional outlets shall be provided
by Grantee at Grantee's cost of actual installation time and materials furnished.
C. Grantee shall provide free installation of one outlet and monthly
basic service without charge to each academic building at Del Mar Junior College
and Corpus Christi State University, or to any other public institution of
higher education which may be located in Corpus Christi in the future. Upon
request from the governing body of the entity, additional outlets shall be
provided by the Grantee at a cost of actual installation time and materials
furnished by Grantee. Upon the completion of installation Grantee shall
transfer maintenance and upkeep of said installation to the applicable institution
after acceptance within a reasonable time period by such institution.
D. Should the City find that the Grantee has failed to provide
installation and service to public schools, colleges, or junior colleges within a
reasonable time period from the date of such request, the City will specifically
notify and enumerate to the Grantee the installations and services to be
provided in writing. Failure to make such installations and provide service
within three (3) months of the date of notification will constitute a breach of a
condition for which the remedy of Section 25 is applicable.
E. Grantee will make its studio and production equipment available to
the school districts, colleges, and junior colleges for origination of programming
and other educational purposes at no cost as provided in Exhibit "A", Form K.
Failure to provide such service shall subject Grantee to civil penalties provided
in Section 25(C).
VI. Additional facilities.
Grantee shall make available a mobile van and portable equipment
bank as described in Exhibit "A", Form K by no later than November 1, 1982.
Throughout the duration of the franchise, Grantee shall adequately maintain and
replace as necessary such equipment at Grantee's cost. Such replacement
equipment shall be of a quality better than or equivalent to the equipment being
replaced. Failure to maintain or replace such equipment will subject Grantee to
civil penalties provided in Section 25(C).
VII. Two-way capability and activation.
Grantee shall, during the Phase 2 rebuild, construct a two-way
capable system. Within three (3) years from the date of the franchise award,
the Grantee shall provide at its cost a business analysis of the feasibility of the
27
activating two-way capability. If the analysis indicates a feasibility and demand
for such activation, the City Council, at its option, may require such
activation, and the Grantee shall activate the two-way capable system within a
reasonable time not to exceed six (6) months from the date of such City Council '
action. Prior to such business analysis, if an institution applies to the City for
two-way activation, and it is subsequently determined by the City Council that
such activation would be in the best interest of the subscribers as a group and
the general public, Grantee shall activate the two-way capable system within a
reasonable time not to exceed six (6) months from the date of such City Council
action. Failure to comply with this section shall subject Grantee to the civil
penalties provided in Section 25(I).
SECTION 23. PROVISION FOR RATES AND CHARGES FOR SERVICE.
A. In accordance with Article VIII, Section 7 of the City Charter,
the City Council shall be empowered to determine, fix and regulate the charges,
fares or rates of the Grantee and from time to time to alter or change such
rates.
B. The City shall fix and regulate rates for services which shall
include, but not be limited to, the following:
(1) Rates for the provision of basic service to subscribers.
(2) Rates for the installation and connection of services,
including converters.
(3) Rates for the provision of pay television services to
subscribers to the extent that no other governmental entity or agency has
preempted jurisdiction.
C. The Grantee shall have the right to conduct promotional
campaigns to the general public without discrimination which permit
subscriptions, connections and installation to the system at a lesser rate than
those approved by the City Council.
D. The Grantee or the City may, from time to time, establish revised
rates for services. The following procedures are hereby adopted to provide for
a method for revising rates:
(1) The Grantee shall file a petition with the City Council
containing full and detailed information concerning the rate revisions being
requested and financial documentation for such rate revision. Failure of Grantee
28
to i rovide City with such full, complete, and detailed information and financial
documentation after request by the City shall be reason for refusal of the City
Council of such rate revision request.
(2) The City Council shall set the date and time for public
hearing on such rate revision requests within a reasonable period of time and
shall render a decision on the request within a reasonable period of time
following the public hearing.
(3) Within 10 days of the date for the public hearing which has
been established by the City Council, the Grantee shall notify its subscribers
of the hearing by announcement on at least two channels of its system between
the hours of 7:00 p.m. and 10:00 p.m. for five consecutive days preceding the
date of the public hearing.
(4) The City Council may, at its option, employ a consultant or
consultants to aid in the analysis of the requested rate revision. Costs of such
consultants shall be borne equally by the City and the Grantee.
(5) The Grantee may not institute any legal action to contest any
rate, charge, or fare fixed by the City Council until the Grantee has filed a
motion for rehearing with the City Council specifically setting out each ground
of its complaints against the rate, charge or fare fixed by the City Council,
and until the Council has acted upon such motion or until a period of 60 days
has elapsed.
(6) Nothing herein shall be deemed to prevent the City on its
own initiative from instituting proceedings to revise rates.
E. Rates charged for advertising by the Grantee will not be subject
to City regulations, but shall reasonably reflect system size, demand for
advertising, and strength of origination programming and will be subject to the
franchise fee. Such rates, however, shall be filed with the City Secretary and
shall be applied without discrimination.
F. Rates charged for leased channels can be negotiated, but shall
reasonably reflect cost of service, length of contract, and demand for leased
channels. When established, the rates shall be filed with the City Secretary.
Lease channel rates will not be subject to City regulation, but will be subject to
the franchise fee.
G. Rates charged for advertising and leased channels shall be
considered as a part of the gross income when determining reasonableness of
rates.
29
H. The Grantee's petition for a rate increase shall include, but not
be limited to, the following financial reports, which shall reflect the operations
of the Corpus Christi system only.
(1) Balance Sheet
(2) Income Statement
(3) Statement of Sources and Applications of Funds
(4) Detailed Supporting Schedules of Expenses, Income, Assets
and other items as may be required.
(5) Statement of Current and Projected Subscribers and
Penetration.
The Grantee's accounting records applicable to the Corpus
Christi system shall be available for inspection in Corpus Christi by the City at
all reasonable times. The City shall have access to records of financial
transactions for the purpose of verifying allocated or other indirect costs
prorated to the Corpus Christi operation. The documents listed above shall
include sufficient detail and/or footnotes as may be necessary to provide the
City with the information needed to make accurate determination as to the
financial condition of the system. All financial statements shall be certified as
accurate by an officer of Grantee.
SECTION 24. CITY RIGHTS OF FRANCHISE.
A. The right is hereby reserved to the City or the City Council to
adopt, in addition to the provisions contained herein and in existing applicable
ordinances, such additional regulations as it shall find necessary in the exercise
of the police power; provided, that such regulations, by ordinance or
otherwise, shall be reasonable and not in conflict with the rights herein
granted.
B. The City shall have the right to inspect the books, records,
maps, plans, income tax returns, and other like material of the Grantee at any
time during normal business hours.
C. The City shall have the right, during the life of this franchise,
to install and maintain free of charge upon the poles of the Grantee any wire
and pole fixtures necessary for City alarm systems on the condition that such
wire and pole fixtures do not interfere with the CATV operation of the Grantee.
D. The City shall have the right to supervise all construction or
installation work performed subject to the provisions of this franchise and make
30
such inspections as it shall find necessary to insure compliance with the terms
of this franchise and other pertinent provisions of law.
E. At the expiration of the term for which this franchise is granted,
or upon its termination and cancellation, as provided for herein, the City shall
have the right to require the Grantee to remove at its own expense all portions
of the CATV system from all public ways within the City.
SECTION 25. CIVIL PENALTIES. For the violation of any of the
following provisions of this franchise, penalties shall be chargeable to the
Security Fund as follows:
A. -For failure by the Grantee to complete the Phase 1 of the system
rebuild expanding channel capacity to a minimum of 26 channels and be fully
activated by no later than May 1, 1982, the City may withdraw from the
Security Fund Two Hundred Dollars ($200.00) per day for each day, or part
thereof, the deficiency continues.
B. For failure by the Grantee to complete the Phase 2 of the system
rebuild expanding channel capacity to a 54 channel capacity system and be fully
activated by no later than May 1, 1986, City may withdraw from the Security
Fund Two Hundred Dollars ($200.00) per day for each day, or part thereof,
the deficiency continues.
C. For failure by the Grantee to provide, maintain, replace, and
make available channels, equipment, studio facilities, personnel, and mobile van
as specified in Section 22, City may withdraw from the Security Fund One
Hundred Dollars ($100.00) per day for each day, or part thereof, the
deficiency continues.
D. For failure by the Grantee to provide extension of service in
accordance with Section 15, unless the City Council specifically approves a delay
by motion or resolution, due to the occurrence of conditions beyond Grantee's
control, the City may withdraw Two Hundred Dollars ($200.00) per day for each
day, or part thereof, the deficiency continues.
E. For failure by the Grantee to provide data, documents, reports,
information as required by Sections 9, 12, 14, 18, 21 and 23, the City may
withdraw from the Security Fund Fifty Dollars ($50.00) per day for each day,
or part thereof, the violation occurs or continues.
F. For failure by the Grantee to comply with quality of service or
operational or technical standards following the City's written notice directing
31
Grantee to make improvements pursuant to Section 12(I), City may withdraw
from the Security Fund Two Hundred Dollars ($200.00) per day for each day,
or part thereof, the violation continues.
G. For failure by the Grantee to comply with the City's written
notice directing the Grantee to provide installation of outlets and service to
schools, colleges, and junior colleges pursuant to Section 21, V(D), City may
withdraw from the Security Fund Two Hundred Dollars ($200.00) per day for
each day, or part thereof, that the violation continues.
H. For failure by the Grantee to test, analyze, and report on the
performance on the system following a request by the City pursuant to Sections
11, 12 and 28, City may withdraw from the Security Fund Two Hundred Dollars
($200.00) per day for each day, or part thereof, that such noncompliance
continues.
I. For failure by the Grantee to activate the two-way capability
pursuant to Section 22, VII, City may withdraw from the Security Fund One
Hundred Dollars ($100.00) per day for each day, or part thereof, that such
noncompliance continues.
J. For failure by the Grantee to provide continuity of service as
required in Section 17, the City may withdraw from the Security Fupd Two
Hundred Dollars ($200.00) per day for each day, or part thereof, that such
service is not provided.
SECTION 26. FORFEITURE OF FRANCHISE.
A. In addition to all other rights and powers pertaining to the City
by virtue of this franchise or otherwise, the City reserves the right to
terminate this franchise and all rights and privileges of the Grantee hereunder
in the event that the Grantee:
(I) Violates any provision of this franchise or any rule, order
or determination of the City or City Council made pursuant to this franchise;
(2) Becomes insolvent, unable or unwilling to pay its debt, or is
adjudged bankrupt;
(3) Attempts to dispose of any of the facilities or property of its
CATV business to prevent the City from purchasing same, as provided for
herein;
(4) Attempts to evade any of the provisions of this franchise or
practices any fraud or deceit upon the City.
32
B. The City Manager shall be responsible to see that all terms and
conditions of this franchise are met and performed. In the event of any of the
above mentioned violations, the City Manager shall take such action as
necessary and proper to enforce or terminate the franchise. Prior to any
forfeiture against the Grantee, City shall give Grantee at least thirty (30) days
advance written notice of such proposed forfeiture, which written notice of
proposed forfeiture shall state clearly wherein the Grantee has failed to comply
with the provisions of the franchise, the recommended cure, the time to cure,
the persons in authority to whom responses should be addressed, and such
other procedures as may be specified by the City. If Grantee fails to cure
such deficiencies within the time prescribed in the notice of proposed
forfeiture, the City Council may revoke the franchise by forfeiture at a public
hearing held for such purpose after the City has given Grantee at least ten
(10) days advance written notice of such hearing. Grantee shall have the right
to participate as a party to such hearing.
SECTION 27. PURCHASE OF SYSTEM BY CITY.
A, Rights to Purchase.
In the event the Grantee forfeits or City terminates this franchise
pursuant to provisions of this ordinance, or at the normal expiration of the
franchise term, City shall have the right to purchase the CATV system in
accordance with the following provisions and the provisions of Article VIII,
Section 5(k) of the City Charter which is attached hereto and incorporated
herein as Exhibit "D". The procedures set forth herein are available for any
of the purposes set forth above and may be commenced at any time whether or
not they are commenced within the last two (2) years of the term of this
franchise.
B. Franchise Valuation.
For purposes of this section only, the fair value of the franchise
shall be the replacement value of tangible assets of the franchised CATV
system. "Replacement value" is defined as the cost of building a new and
equally sized system using the latest technology and current costs less an
allowance for the age and condition of the present system, except no value shall
be assigned to either the franchise itself or any right, privilege or expectancy
arising to Grantee out of the right to transact business under the franchise,
33
and particularly no value shall be allowed for any increase in value arising out
of any expectation of CATV system revenues beyond the forfeiture and
termination date or expiration date, whichever is sooner.
C. Date of Valuation.
The date of valuation shall be no earlier than the day following the
date of expiration or termination and no later than the date City makes a fair
and reasonable offer for the system or the date of transfer of ownership,
whichever occurs first.
D. Transfer to City.
Upon exercise of this option and the payment of the above sum by
the City and its service of official notice of such action upon Grantee, the
Grantee shall immediately transfer to the City possession and title to all
facilities and property, real and personal, of the CATV system, free from any
and all liens and encumbrances not agreed to be assumed by the City in lieu of
some portion of the purchase price set forth above; and the Grantee shall
execute such warranty deeds or other instruments of conveyance to City as
shall be necessary for this purpose. The Grantee shall make it a condition of
each contract which extends beyond the period at which the City has the option
to acquire the system and entered into by it with reference to its operation
under this franchise that the contract shall be subject to the exercise of this
option by the City and that the City shall have the right to succeed to all
privileges and obligations thereof upon the exercise of such option.
E. Procedure for Purchase.
Whenever the City Council orders that notice be given to Grantee that
the City desires to purchase the CATV system, the City Secretary shall pause
such notice to be given to Grantee in writing. Within sixty (60) days from the
date Grantee receives such written notice, Grantee shall submit to the City
Manager a complete detailed inventory of Grantee's tangible assets for the
franchised CATV system, detailed maps clearly indicating the location of such
assets, and Grantee's best estimate of the fair value of such assets. The City
and Grantee shall have a period of sixty (60) days after the City's receipt of
the aforesaid Grantee's inventory, maps, and best estimate of value in which to
agree upon the value.
34
F. Arbitration of Value and Costs.
(1) In the event City and Grantee cannot agree upon the
aforesaid value of the CATV system, the value shall be determined by a board
of arbitrators composed of three members as set forth below.
(2) Arbitration shall commence and proceed according to law as
follows:
(a) Within fifteen (15) days following the sixty (60) day period
described in subsection E above, the City and Grantee shall
each appoint one arbitrator both of whom are experienced
and knowledgeable in the valuation of cable television
property. These two arbitrators shall agree upon selection
of, and shall appoint, within fifteen (15) days, the third
arbitrator who is similarly qualified and who is a Texas
registered professional engineer. If Grantee either fails to
furnish to the City the inventory and maps required within
the time period prescribed in subsection E above, or fails
to appoint its arbitrator within the fifteen (15) day period
described above, the City Council may appoint the
arbitrator for Grantee. If the two arbitrators fail to agree
upon and appoint the third arbitrator within the specified
time period, the third arbitrator may be selected in the
manner described in Article VIII, Section 5(k)(3) of the
City Charter (see Exhibit "D" attached hereto).
(b) Within twenty (20) days after appointment of the third
arbitrator and upon five (5) days advance written notice to
the City and Grantee, the board of arbitrators shall
commence a hearing on the issue of valuation.
(c) The hearing shall be recorded and transcribed at the
request of either City or Grantee. All hearing
proceedings, debate and deliberations shall be open to the
public and at such times and places as contained in the
notice or as thereafter publicly stated in the order to
adjourn, except as otherwise authorized by the City Attorney.
(d) At the close of the hearings and within forty-five (45) days
after appointment of the third arbitrator, the board shall
prepare findings and decision agreed upon by a majority of
the board which shall be filed with the City and served by
mail upon the Grantee. In the event the board, or a
majority thereof, fails to make a decision within such time
period, the proceedings of this board shall become null and
void and a new board of arbitrators shall be chosen in like
manner and the arbitration procedures set out in this
subsection F shall begin anew.
(e) The decision of the Board shall be final and binding upon
the City and Grantee.
(f) Either City or Grantee may seek judicial relief in the
following circumstances:
(i) the City fails to select an arbitrator;
(ii) the arbitrators fail to select a third arbitrator, unless
a third arbitrator is selected in the manner set forth
in Article VIII, Section 5(k)(3) of the City Charter;
(iii) one or more arbitrator is unqualified;
(iv) designated time limits have been exceeded;
(v) the board has not proceeded expeditiously; and
(vi) based upon the record the board abused its discretion.
35
•
F. Members of the general public may add topics either by working
through Grantee or City or by presenting a petition. If such a petition bears
the valid signatures of fifty (50) or more residents of Corpus Christi, the
proposed topic or topics shall be added to the list of topics to be discussed at
the evaluation session.
SECTION 29. NEW DEVELOPMENTS.
The Grantee shall strive to upgrade its facilities, equipment, and
service so that its system is as advanced as the current state of technoloy will
allow. The Grantee shall make every available effort to install additional
channel capacity as required to keep channel capacity in excess of the
reasonable demand thereof by users.
SECTION 30. AREAWIDE INTERCONNECTION OF CATV SYSTEMS.
The Grantee shall endeavor to interconnect access channels of the
cable system with any or all other CATV systems in adjacent areas, upon the
directive of the City. Interconnection of systems may be done by direct cable
connection, microwave link, satellite, or other appropriate method. Upon
receiving the directive of the City to interconnect, the Grantee shall
immediately initiate negotiations with the other affected system or systems in
order that all costs may be shared equally among cable companies for both
construction and operation of the interconnection link. The Grantee may be
granted reasonable extensions of time to interconnect or the City may rescind
its order to interconnect upon petition by the franchisee to the City. The City
shall grant said request if it finds that Grantee has negotiated in good faith
and has filed to obtain an approval from the system or systems of the
proposed interconnection, or that the cost of the interconnection would cause an
unreasonable or unacceptable increase in subscriber rates. The Grantee shall
cooperate with any interconnection corporation, regional interconnection
authority or city, county, state and federal regulatory agency which may be
hereafter established for the purpose of regulating, financing, or otherwise
providing for the interconnection of cable systems beyond the boundaries of the
City.
SECTION 31. FORCE MAJEURE CLAUSE.
If Grantee hereunder is rendered unable, by force majeure, to carry
out the terms of this franchise, other than the obligation to make money payments
37
(g) In the event a court of competent jurisdiction determines
the board has abused its discretion, it may order the
arbitration procedure repeated and issue findings, orders
and directions, with costs of suit to be awarded to the
prevailing party.
(h) Cost of arbitration shall be borne equally by the City and
the Grantee.
(3) Upon determination of the fair value either by agreement or
by the board of arbitrators, the City Council shall, within a period of sixty
(60) days thereafter, determine whether or not to submit to the qualified voters
of the City the proposition of whether or not the City should acquire the
subject assets of Grantee. Such election and the authorization for issuance and
sale of any bonds necessary to purchase said assets shall be accomplished in
the manner set forth in Article VIII, Sections 5(k)(4) and 5(k)(5) of the City
Charter (see attached Exhibit "D").
SECTION 28. PERFORMANCE EVALUATION SESSIONS.
A. The City and the Grantee shall hold scheduled performance
evaluation sessions within thirty (30) days of the third, sixth, ninth, and
twelfth anniversary dates of the Grantee's award of the franchise. All such
evaluation sessions shall be open to the public.
B. Special evaluation sessions may be held at any time during the
term of the franchise at the request of the City or the Grantee. •
C. All evaluation sessions shall be open to the public and announced
in a newspaper of general circulation in accordance with legal notice. Grantee
shall notify ,its subscribers of all evaluation sessions by announcement on at
least two (2) channels of its system between the hours of 7:00 p.m. and 9:00
p.m., for five (5) consecutive days preceding each session.
D. Topics which may be discussed at any scheduled or special
evaluation session may include, but not be limited to, service rate structures;
franchise fee; penalties; free or discounted services; application of new
technologies; system performance; services provided; programming offered;
customer complaints; privacy; amendments to this ordinance; judicial and FCC
rulings; line extension policies; and Grantee or City rules.
E. At the performance evaluation session scheduled for the third
anniversay date of the Grantee's award of the franchise, Grantee shall provide
at its cost a business analysis of the feasibility of activating two-way capability
over the system.
36
upon written notice to the City of the force majeure and together with
reasonable particulars concerning it, the City Council may suspend or partially
suspend the Grantee's obligations under this franchise during the continuance
of the force majeure, but not to exceed thirty (30) days or such time as
specified by the City Council. During such period, Grantee shall devote its
full resources to servicing and restoring the. system to full operation.
SECTION 32. GRANTEE'S PROPOSALS INCORPORATED.
By its acceptance of the franchise, Grantee specifically grants and
agrees that its Proposal is incorporated by reference and made a part of this
ordinance as Exhibit "A". In the event of a conflict between proposed services
listed in said Proposal and the provisions of this ordinance, that provision
which provides the greatest benefit to the City, in the opinion of the City
Council, shall prevail. Failure to provide services as promised in Grantee's
Proposal as incorporated herein shall be deemed a breach of this ordinance to
which the provisions of Sections 25 and 26 of this ordinance shall apply.
SECTION 33. PARTIAL INVALIDITY AND REPEAL PROVISIONS.
If any section, subsection, sentence, clause, phrase or portion of
this ordinance is for any reason held invalid or unconstitutional in any court of
competent jurisdiction, such portion shall be deemed a separate, distinct, and
independent provision and such holding shall not affect the validity of the
remaining portions hereof.
SECTION 34. PUBLICATION. The City Secretary is hereby directed
to publish at Grantee's expense the full text of this ordinance one time in some
newspaper of general circulation in the City within five (5) days following each
reading of this ordinance, as required by City Charter Article VIII, Section
3(a).
38
4Ib
AGREED TO AND ACCEPTED:
ATHENA CABLEVISION
OF CORPUS CHRISTI, INC.
Ti 74110.C. %,+arkman, Vice President
ATHENA COMMUNICATIONS
CORP RATION
L
'Johy( C. Malone, Vice President
39
ATTEST:
ry Jo—n M. raper
ATTEST:
That the foregoing ordinance was reafor e firs time and passed to its
second readingon this the dayof 19 by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K. Dumphy
Leopoldo Luna
Betty N. Turner
Cliff Zarsky
That the foregoing ordinance as read for
third reading on this the day of
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K..Dumphy
Leopoldo Luna
Betty N. Turner
Cliff Zarsky
That the foreqping ordinan
on this the p:<day of'
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K.'Dumphy
Leopoldo Luna..
Betty N. Turner
Cliff Zarsky
PASSED AND APPROVED, this the a j day of
ATTEST:
d time 494 passed to its
, 19g , by the
d for the third time and passed finally
, 19 '$/ , by the following vote:
APPR VED: `�,, , DAY �L 19 k/:
J. BRUCE AYCOCK, CITY ATTORNEY
MAYOR
THE CI " OF CORPUS CHRISTI, TEXAS
191 .
16123
=..• t ``..,}'�s f.;,.�ry„",^,re } e. -/,w fttlG1-.-s i f-: w.r r,:'`, n. �•.-^.,
ATHENA COMMUNICATIONS CORPORATION
CALL BOX 22593
WELLSHIRE STATION
DENVER. COLORA00 00222
002) 721.5200
March 6, 1981
Mr. Marvin Townsend
City Manager
City Hall
302 S. Shoreline
Corpus Christi, TX 78401
Dear Mr. Townsend:
i4jiv K�
S'3
CIY iaana8F:
On February 26, 1981, representatives from TCI and Athena met with members
of your city staff and consultant from CTIC. We reached agreement on some
additions and/or changes to our February 18, 1981, renewal proposal to the
City of Corpus Christi, Texas.
The purpose of this letter is for attachment to the proposal, which I under—
stand is to be referenced as a part of the new Ordinance for a cable television
system.
The revised changes and/or additions are as follows:
1. Within five (5) years from date of franchise renewal the system
would be rebuilt to an upper level bandwidth of 400 mhz.
2. Within three (3) years -from the date of the franchise renewal,
Athena will pay for a business analysis as to the feasibility of
activating the two way upstream capability of the system.
If the analysis indicated that there was a need for such activation,
the city council would make a decision for this requirement to be met
within a reasonable period of time.
3. All public school buildings in each of the independent school districts
built prior to November, 1979, would be completely wired at no cost and
maintenance turned over to the districts after acceptance. A free
cable reception drop would be provided to each public school building
constructed after November, 1979, and wired at cost of materials and
labor. Basic service would be provided at no cost to the independent
school districts.
4. Each academic building at Del Mar College and Corpus Christi State
University designated by the College would be provided a cable
reception "drop" and basic service without charge.
1i
Mr. Marvin Townsend
March 6, 1981
Page 2
5. Channels would be made available for community, educational, governmental,
and religious access. A concept would be built into the franchise that if
the access channels are not programmed to a certain usage level over a
period of time, then programming for those channels would revert to the
cable company. Conversely, if they become filled beyond a certain level,
then an additional channel would be made available.
6. In the rate section the convertor lease charge would be $2.50 per month.
These changes to the proposal will impact the capital monies appreciably and
have some affect on the operating numbers that have been presented in the
proposal.
With these changes to the proposal, Corpus Christi will have the future capacity
built in for many years and a cable system that Athena and the City can both
be proud of.
ALL:pb
Arthur L. Lee
Central Divisional Manager
ATILENA COMMUNICATIONS CORPORATION
CALL BOX 22395
WELLSHIRE STATION
DENVER, COLORADO 80222
(3031 771-8200
April 17, 1981
City Secretary
City of Corpus Christi
Corpus Christi, Texas 78476
Attn: Marvin Townsend
RE: Ordinance No. 16133, Granting a Non -Exclusive CATV Franchise to
Athena Cablevision of Corpus Christi, Inc.
Gentlemen:
The undersigned, Athena Cablevision of Corpus Christi, Inc., Grantee under
Ordinance No. 16133 does hereby, pursuant to the provisions of Section 6(A) of
such Ordinance, unconditionally accept the franchise granted pursuant to such
Ordinance: and does hereby promise that it will comply with and abide by all of
the provisions, terms and conditions of the franchise granted by such Ordinance.
Very truly yours,
ATHENA CABLEVISION OF CORPUS CHRISTI, INC.
arkm , Vice President
ATHENA COMMUNICATIONS CORPORATION
STATE OF COLORADO
COUNTY OF ARAPAHOE
On this 17th day of April, 1981, personally appeared before me, a Notary
Public in and for the said County and State, J.C. SPARKMAN, known to me to be
the Vice President of the corporation described in the foregoing instrument, and
John M. Draper, known to me to be the Secretary of said corporation, who
acknowledged to me that they are the officers of said corporation as above
designated, that they executed the foregoing instrument on behalf of said
corporation freely and voluntarily and for the uses and purposed therein
mentioned.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year first above written.
y Pua a
My Commission E s:
Exp My Commission Expires Feb. a 1,9Q5
0 0 SET TAB STOPS AT ARROWS 0
=OM!,
Certificate �I�offIInsurance
I ERTIFICATE I ISSUED A+5 11 MIITTF INFORMATION 011LT AND GUfiFERS N
NAME AND ADDRESS OF AGENCY
Franey ' Parr
One T•artle Creek Village, Suite 514
Dallas, Texas 75219
NAME AND ADDRESS OF INSURED
Athena.Cablevision of Corpus Christi, Inc.
Call Box 22595, Wellshire Station
Denver, Colorado , 80222
IGH UP.' THE CE I E HOL.
COMPANIES AFFORDING COVERAGES
COMPANY A REPUBLIC INSURANCE CO. -
COMPANY B
LETTER
COMPANY C
LETTER
COMPANY D
LETTER
LETTER
This is to certify that policies of insurance listed below have been issued to the insured named above and are in force at thls time. Notwithstanding any requirement, term or condition
of any contract or other document with respect to which this certificate may be issued o may pertain, the insurance afforded by the policies described herein is subject to all the
terms, exclusions and conditions of such policies
COMPANY
LETTER
TYPE OF INSURANCE
POLICY NUMBER
POLICY
EXPIRATION DATE
Limits of Liability in Thousands (000)
EACH - AGGREGATE
OCCURRENCE
GENERAL LIABILITY
❑ COMPREHENSIVE FORM
❑ PREMISES—OPERATIONS
❑ EXPLAZARDOSION AND COLLAPSE
H
n UNDERGROUND HAZARD
PROOUCTS/COMPLETED
OPERATIONS HAZARD
B. CONTRACTUAL INSURANCE
BROAD FORM PROPERTY
DAMAGE
❑ INDEPENDENT CONTRACTORS
0 PERSONAL INJURY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY AND
PROPERTY DAMAGE
COMBINED
PERSONAL INJURY
h
AUTOMOBILE LIABILITY
0 COMPREHENSIVE FORM
0 OWNED
❑ HIRED
❑ NON -OWNED
BODILY INJURY
(EACH PERSON)
BODILY INJURY
(EACH ACCIDENT)
PROPERTY DAMAGE
BODILY INJURY AND
PROPERTY DAMAGE
COMBINED
WORKERS' COMPENSATION
and
EMPLOYERS' LIABILITY
STATUTORY
(ENC. ACCIDENT,
OTHER
a DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES
Location: Corpus„Christi, Texas
Cancellation: Should any of the above des.gibed policies be cancelled before the expiration date thereof, the issuing com-
v pany will endeavor to mail - days written notice to the below named certificate holder, but failure to
mail such notice shall impose no obligation or liability of any kind upon the company.
ACORD 25 (1.79)
NAME AND ADDRESS OF CERTIFICATE HOLDER.
City of Corpus Christi
302 South Shoreline
Corpus Christi, Texas 78401
DATE ISSUED April 24 , 1981
Lej
AUTHORIZED ESENTATIVE
EXCESS LIABILITY
BODILY INJURY AND
A
a UMBRELLA FORM
CDU 3558
1/1/82
PROPERTY DAMAGE
El oo
El 000
❑ OTHER THAN UMBRELLA
FORM
,
COMBINED
WORKERS' COMPENSATION
and
EMPLOYERS' LIABILITY
STATUTORY
(ENC. ACCIDENT,
OTHER
a DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES
Location: Corpus„Christi, Texas
Cancellation: Should any of the above des.gibed policies be cancelled before the expiration date thereof, the issuing com-
v pany will endeavor to mail - days written notice to the below named certificate holder, but failure to
mail such notice shall impose no obligation or liability of any kind upon the company.
ACORD 25 (1.79)
NAME AND ADDRESS OF CERTIFICATE HOLDER.
City of Corpus Christi
302 South Shoreline
Corpus Christi, Texas 78401
DATE ISSUED April 24 , 1981
Lej
AUTHORIZED ESENTATIVE
STATE OF TEXAS,
bounty of Nueces.
}ss:
PUJBLISHER'S AFFIDAVIT -
#226858
CITY OF CC
CITY SECRETARY
Before me, the undersigned, a Notary Public, this day personally came
ANITA CASAS who being first duly sworn, according to law, says that he is the
ACCOUNTING CLERK of the Corpus Christi Caller and The Corpus Christi Times,
Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of
AN ORDINANCE No. 16133 GRANTING A FRANCHISE TO ATHENA CABLEVISION OF CORPUS CHRISTI, INC.*-
of which the annexed is a true copy, was published in CORPUS CHRISTI CALLER TIMES
An the 30th day of...._ March 1981 , and once each thereafter for one
consecutive.
_one Times.
,1L._ 2519.04
at„2.4-6_.) caact.„---
Subscribed and sworn to before me this 8th day of April 19 81
NotaryuubNueces County, Texas
LOIS
AN ORDINANCE Y SECTION 1. rSHORT r{pry oirl"Cif$7:1The ter?dr ortf't gj1811 nart�x'z7r 't
E fi l l include but t be lr*r� p
No 16133
GRANTING A-FRAN
CH -ISE TO ATHENA CA-
BLEVISION OF CORPUS
CHRISTI, INC., TO OPER-
ATE -AND MAINTAIN A
COMMUNITY ANTENNA
TELEVISION SYSTEM IN
THE CITY FOR A TERM
NOT TO EXCEED FIF-
TEEN (15) YEARS: SET-
TING FORTH CONDITIONS
ACCOMPANYING THE
GRANT OF FRANCHISE,
PROVIDING', FOR CITY
REGULATION AND USE
OF THE COMMUNITY AN-
TENNA TELEVISION SYS-
TEM; PRESCRIBING PEN-
ALTIES FOR VIOLATION
OF THE FRANCHISE PRO-
VISIONS, AND PROVID•
ING FOR PUBLICATION.
WHEREAS, the terms f
the franchise granted to
Athena Cablevision of Cor-
TJTL This ordinance a hall mcu u no clusiveaxan.111/,C)01 re
be_kno"Corpu Christo jtod tee 19, installation ands servos therrinr 50"1r.0
Cor -
as the "Corpus chr)stl Coble onnect,on fees, subscribe) similar the of said streets,
Television 'FO Franchise" lees for ba5rc service alleys, pyl PlrC ways and
SECTION le2. DEEM-, F neI rges n50 lyse of Chan places, r4n9 th person at any.
tis ord an e, I purposew g nets, reverlee"Nom advertls time duringilllle period of this
this ordnance, the fallowing Ing, and revenue from pa i franchise.
SECTION A. FRANCHISE
terms, phr-a£es', words, and television service, converte
their denvbtfbns shall have I Sams or
rentals, studio rents TERRITO13)4, The franchise
the meaning given herein: al, and pr0duttion equips is for theAcesent territoria
When not inconsistent with ment and -personnel lees{{ limits of thezCitY and for any
the context, Words used in The term shall not induct; area hettpe(grth added there
the present tense include the revenues received from any o tlunoanAhe. term of fha
future, he singular plural in- taxes seances fh are i franchise he
clutle the singular number, by the Grantee which are imj SECTION -5. COSTS TO
words in th0 Singular num- posed directly on any sub jA) THE Gse. 4,, -Costs tob
ber includ11 the plural num• scriber or 0580'by any city borne by ,the,Grantee for the
The word "shall" is al- state, or collected
franchise renewal shall in
ber.
ways mandatary and not unit and collected by flit 'elude alL,tobts Incurred by
merely diretfocy. 1 Grantee for such govern
the Cify ig,6t5 franchise re
(I) 'BASIC SERVICE" menial unit:"', newel stutlri'evaluatlon, and
n
Shall mean all comma- (12) "INSTALLATION' reparation, latera^not to -need
i t hog services prang the shall can the connection o I T ty ,},Oland Dollars
dbye the grantee Including the the system from feeder cable (570,000L Client¢¢ shall,
delivery of baoydwst signals to subscribers' terminals. atlditlonn paM all costs 01 pub
in
and programming ori l• (13) LOCAL STATION' i i ( M d) nce
pus Christi, Inc. (hereinafter Hated oyeMhe cable system, Is a televis
referred to as "Athena") 10 covered IT:the regular
operate a community an- monthly charge paid by sub
Ina television system with- scribers, excluding optiona
In the City of Corpus Christi services for°which a seta
(hel'einafter referred to as rate charge IS made
"City") expired on Nevem- - (2) "CITY" is the City o
ber 17, 1979, and ' Corpus Christi, Texas a5
WHEREAS, on October 17, exists and' any area an
1919 the City Council notified o ed thereto'
Athena that its franchise 'ne13) "CITY MANAGER" I
would expire on November the person or his designates
17, 1979 and granted per- agent responsible to see fha
mission for that company to call terms and conditions o
operate atter November 17, the franchise are met ant
1979 on a week-tn-week basis performed and in case of an
not to exceed six months, violation take such action a
anWHEREAS, An May 14,
1980 the City Council granted
Athena permission to contin-
ue 10 operate after May 17,
1980 on a week -to -week basis
during the consideration of a
franchise renewal; and
WHEREAS, on December
8, 1980 Athena submitted to
the City a proposal fora re-
newal of. the franchise which
proposal was subsequently
expanded upon in a revised
proposal on February 18,•
1981; and
WHEREAS, on February
26, 1981 Athena verbally
modified the February 18
proposal to Includein-
creased
n-
aandascommunitY nnel capacity
whichc verbal proposal was
confirmed by a written letter'
on MarCh 6, 1981; and
WHEREAS, it is the intent
than an agreement be en-
tered into between the City
and Athena to renew said
franchise with certain modi-
fications Incorporated here-
in; and
WHEREAS, the City has
conducted -public- and- open
discussions affording the
public reasona)tle opportuni-
ty to be heard and such dis-
cussions nave Inc,00ea anal-
ysis and codslderation of the
technical ability, financial
condition, legal qualification
and general character of the
franchisee, aNd
WHEREAS, after such
consideration --the City has,
agreed to allSW Athena with.
In 30 days (rein the date of
final passage of this Fran
ion Broadcasting I talon o:4 s ordi
station required by FC • SECTiNj�a6. DURATION
regulations 'to,be carried In'gND AG'1 NCE OF
the Corpus ChYistl metrapol FRANCHISE. A, The Iran -
Ran area r- chile ani lite rights, privi-
(14) "PERSON" shall 'leges an authority hereby
mean any individual firm, granted,, all -take effect and
partnership'; 'assoc,at,on, -be in force ten days after n-
corporahon.company, or or be
forpassage thereof, or upon
a (15) "PAY-TELEVISION
P Y-TEy kind. nen
the Grantee,
"PAY'TELEV ry over which eye) is later, and shall
hall mean the delivery over continue ihifOrce and effect
,he CATV "system of video fora term. Rot to exceed fif-
and audio -signals in in -
or
11{{,, ;);ears, provided
for lgiee or' nti6088 over
subscribers0d that witfiIPa630) days after
for a fee or' nerve over and the date ot,.final passage of
's9bove the drool,¢ for basic Inc„fragchlIse the Grantee
a per program, shall fllg-yfljbt,the City Secre-
er icbanner or other sub- fary Ifs,unponditional ac-
ceptance.ot- the franchise
and promise to comply with
and abide by all its troy)•
lions, temps, and conditions.
Such acceptance and prom-
fse shall Le- In writing duly
executed ani sworn to by the
approprlele Officers of the
Grantee ,an0 countersigned
by the appropriate officer of
Athena communications
.Corporatioq,4efore a notary
public onnofher officer au-
thorized bylaw to adminis-
ter oaths,
B. The,Arenchise shall be
t for a tenm,of five (5) years
unless so0ger terminated
d hereby
;d4efault described ',The franctlise shall be ex-
, tended lore a cumulative
- term of fifteen years from
the date passageof,;fmaI of
this ordifgg8d provided
Grantee.has completed and
activated Phase
land
andrPbaise
2 of the ponce sY
as descrabeg{n Exhibits "B”
ld
As
"GL1..whrch are in-
corporated -herein by refer-
ence, on, or, before May 1,
1986. Graptee shall notify the
,,City Manager In writing im•
mediatelx-upon completion
',and actiyliition of each such
phase. Notwithstanding any
other provision of this ordi-
nance, !tie—franchise shall
not be 'exp m od fifteen (15)
years 05 t
years ys provided abovee un -
a
rntime
shat been given easonabl p¢od of m8
extensions
(during 110 .7cR,time the Iran
dditions there• f Chise wiAt,continue) com
thereof, Ag A mencing May -1, 1986 and ex
tg, In , - ty, poles, wires, ••
ring nc latF�rO than mane us d1
cables,,. underground con- i 4986 in ord9nl
dusts, manholes, and other termination -whether Grant
television conductors and' eO has not lolly complete
fixtures necessary for thea and actiygla2 the Phase2ere
maintenance- and operation, build onrarnbefore May 1
In the CNy of a CATV system )986. Shoulddhe City Count)
for the IMe,r�eption, sale and I find that the Grantee has n -
easi butlon Of audio and the, yid. • fully and 3itRely complete
eo signals-subleet to the con- and activated the-Phehe 2 r
d)tions-heretwse usedforth".` yrc`o(I t50 term of Sfte fro
• B. Th•Ch7ht to use and • ch) w,It)rnmed(3. ly ea
copy enLda pabltes, alleys' and ,gee irahchi
easeenentsrnpublic ways an•
areolas Mr'
necessary and proper to en
forte or terMinate the Iran
chis0 - f scription basis -'
t (4) "CLASS IV CHANT (16) "PROPOSAL" shall
NEL" shall Mban a signaling y,ean Athena, Cablevision
5th providbtl by a cable; Corporation'suIProposal to
(television system totransmi 1 the Gly of'Corplis Christi on
sprats of any -type from a February 18, 1981, as revised
ubscriber terminal to an ye
written letter on March 6,
�ther point in the cable tele 1981, and attached hereto as
on system Exhibit "A","'
(51 "CONVERTER" shal ` (17) 'SUBSCRIBER"
can an electronic device shall mean a recipient of ser-,
hick 'converts signals to a ices' whic.`h-are delivered
requency not susceptible id over the CATV System.
nterference within the tele) t (18) "STREET" shall
;son receiver of 8 sub
mean the sOrtace of and the
criber, and' by an apprapr)i, space above and below any
to channel selector also public street; rdad, highway,
ermits a subscriber to v,ev/ freeway, lank, -path, public
r receive all signals deliv way Or place, sidewalk, Al-
red at deslghated converte ley, boulevard, parkway,
4I locations' drive or other easement now
61 "COUNCIL" )s the City or hereafter -held by the City
ouncil of rCCorrpus Christi, and shall include other ease.
exas. " ments or rights of way as
{ (7) "COMMUNITY AN- shall be now)held or here-
ENNA TELEVISION SYS- after held b9 the City.
EM", hereinafter referred f (19) "US R"shall mean a
o as "CATV System" or person utilizing a cable tele -
System", means a system lion system' channel for
f coaxial-•eables or other urposesppof production or
electrical' tondCctors and transmissionof materials to
quipment bed or to be used subscribers,
ynmarily to receive audio SECTIOp•3T'G RANT OF
Ind video signals, directly or NON EXCt'U SIVE AU•
indirectly off'the-air, by mi- THORITY, - •
rowave, and'by local or)gi- A. There is hereby granted
ration, and retransmit them p }he City ceche Grantee the
o subscribers for 8 fee. right aoQ„privilege to con -
(8) "FCC's Nan mean the siruct, Rfe .t• aperat2 end
Federal Cber muni lege,
malryta)tk. o. upon, long
opointe on r any legal)�1, across, above, over and un•
elected a t orsuccess or der the }jr els, alleys, ease.
Rlected agentnrsuccessor,t mems, pu tic ways and
(9) "GRANTEE” shat places now, aid out or dedi-
Mean Athena Cablevision o rated and all ext¢
Orpus Christy, Inc or any
chise to either accept or re; ne who bccardanc00sbcceef0 ih5 thehena 1
rovl
lett the terms and condition dns of this ffanchise.p 1
an WHEREAS, upon receip 1i (10) 'GRANTOR" shal
of the franchise by Athan mean the t,CC)ty, of Corpu:
and within 1he30 days fro 'Christ) °
after the date of final pa (II) "GROSS ANNUA
sage of the franchise ord REVENUES' shall`mean al
Hance, Athena -has agreed revenues derived directly o'
accept the 'terms and cond ndirectly 6y the Grantee, i
tions of.the<frapcgtse;.' w affiliates, subsidiaries, par
NOW, THEREFOR E,,,Bgenc; andany-person in whit!
IT -O RDAINEO BY .39) v, he Grantee -It's a-linanc,a
CITY- COUNCIL -OF--THFi'nterest. f'a_en providin
CITY O F COR P U S tFDDl-a,�C1P•5uMn_udr.v tee
HR15T 4,TB-XA5 _ — 1
•
mi n e, nFels efitended'
some
eddihmnal period a
C'SE1G N 7.- C Omay be determined by t Yi�IgiipSs
PLIANCE ,WITH APPL
CABLE'LAWS AND ORDI
• NANCES,,O:
A. Gra113ep shall, at a
times duning-the life of it
franchise -hereunder, be su
the pot cca I'p wart by the Ci to
and to suclxreasonable regu
lotionsordinap54; es t_he City may her
atter estaorba(sll; by resolutio,
B. Notwithstanding an
other provisions of this frail
chile tq, the, contrary, the
Grantee, sha1L at all time
comply+ws-o all laws an
ederal rievef'the state an
federal slue nment or an
dm,nr ve gene)'
thereof. Provided, however
.II any sregidaate or federa
law or part -Oben shall re
quire on 9501i01r�1 the Grante
to perform,atly serviced
shall prohibit the Grante
,from Pe)-1N5J3n10g any ser
vice, in, conflict with the
terms ofdhia franchise or o
City' then as soon ason of the
possible
,followIng,knowledge thereof,
the Grantee. shall notify the
City Manager of the point of
conflict yeljeyed to exist be-
tween such regulation or law
and the lawyer regulations
of /f the he CIJ1y,Manaps er deter-
mines that.¢ material provi-
sion of th,b,traneh(se is af-
fected by -.any subsequent
action of tno state or federal
government ,the City shall
have the -right to modify any
of the provisions herein to
such reasonable extent as
May benecassary to carry
out the .8011 nntent and par
pose of this -agreement.
SECT IDN,. SECURIT
UND. eue,
A. We effe effective
(30) days
Iter the effective date of Thai
ranchisGDbe Grantee shat
deposit,lbeasum of Fitt
ThousandeD011ars (850,000-5
nto a bankraccount, este
bj
shed andtontrolled by the
City,and' ,Grantee shal
maintain:on deposit through
out the derma of this Iran
chlse, paid' slim of Fitt),
Thousand ,Dollars (550,000
as the securjly for the faith
ful performance by Grantee
of all the provisions of chi
franchise„yyand compliance
with all obslers, permits, and
directions, GU any officer o
the City -having lurisdictio
over Its ,aCti:br defaults un
der this, tnagchlse and the
payment, by,dhe Grantee o
any claimq, liens and tax¢
due the Cl which arise b
reason of t ¢,rebuild, ope
atlon or maintenance -of t
system. Grantee shall hay
the right to earn Interest or
funds deposited In the Secur
Icy Fund.
B. Within thirty (30) days
after notice to the Grantee
that any amount has been
withdrawn by the City rrom
the -Security Fund pursuant
to subdivision (A) of this Sec
tion, the Grantee shall depos
it a sum of money sufficient
to restore the Security Fund
to the original 550,00
amount. In the event that the
Grantee fails to fully restore
the Security Fund to the orig
final amount within the 3
day timeperiod, Grante
hall forfeit all funds then re
uact
and the C in
ma at its 091(883
revoke the franchise. tf th
Ar does sof ray
french se; mu
establish the Security Fun
M the manner provided I
subdivision (A) of this Sec
Hon.
C -lithe Grantee fails, a
ter ten (10) days notice to
pay to the City any taxes due
and unpaid, or, falls to repay
to the City, within such ten
(10) days, any damages,
costs, or expenses which the
City shall be compelled to
pay by reason of any act or
default of the Grantee in con-
nection with this franchise;
or falls after thirty (30) days
notice by the City of such
failure to comply with any
provision of the franchise
which" the City reasonably
determines'can be remedied
by an expenditure from the
Security Fund, the City may
immediatery withdraw the
amount thereof, with appli-
cable Interest and penalty,
from the Security Fund.
Upon such withdrawal, the
City shall notify the Grantee
of the amount and date
thereof.
' D. The Security Fund de-
posited pursuant to this Sec•
tion shall become the proper-
ty of the Citythe event
that the franchise Is -
celled by reason of the
default of the Grantee or re-
voked for cause. The Grant-
ee, however, shall be entitled
to the return of such Security
Fund, or portion thereof, as
remains on deposit at the ex-
piration
x-
ptiosof one term of Inc
franchise,
upon termi-
nation of the franchise at an
earlier date provided that
there Is then no outstanding
default on the part of the
Grantee. ,
E. The rights reserved to
the City with respect to the
Security Fund are In addi-
tion to all other rights of the
City whether reserved by the
franchise or authorized by
law, and no action, pro
ceedtng, or exercise of a
right with respect to such Set
curity Fund shall affect antl
other right the City may
have.
SECTION 9. LIABILITY
AND INDEMNIFICATION.
A. The Grantee shall, upon
Its acceptance of this Iran,
chise, and at all times during
the existence of this Iran
chise, maintain in full force
and effect, at i15 own ex
pence, a QeneraI comprehen
sive liability insurance poi
Icy, in protection of the Cit
of Corpus Christi, Its a
titers, board, commissions)
agents and employees, in q
company approved by the
City Manager and in a for
satisfactory to the City Atm
i
Corney, insuring the Grantee
and the City against Iiabillt))
for loss or damage for per)
sonal injury, death, and
property damage, occasion•
ed by the operations of
Grantee under such Fran•
chise, with initial minimum
liability limits of 0500,000 for
personal injury or death of
any one person and 91,000,000
for personal injury or death
of two or more persons in
any one occurrence, and,
5300,000 for damage to prop-,
oily resulting from any one
occurrence ltd such Itmi
rerage Druid Po Ycy shall"
delivered to the City ten (10
days ,0 advance of the effe.
tine date thereof and suc
policy shall Include Inc CI
as an additional name insur-
ed.
C. No franchise granted
under this ordinance shall be
effective unless or until the
policy of insurance as re-
quired in this section has
been filed with the City Sec•
rotary.
D Within thirty (30) days
latter the award of this fran-
chise, the Grantee shall ob-
1 fain and maintain at its cost
and expense, and file with
the City Secretary, a bond
I acceptable to the City ,Attor-
ey in a company authorized
to do business In the State of
Texas In the amount of Two
Hundred Thousand Dollars
tuarantee the
ime y rebuild and full act-
ivation of Phase 1 and Phase
2 of the cable television sys-
tem. In addition to the provi-
sions of Section 22(8), the
bond shall nprov,de the fol-
lowing c tlforabl There
hall be recoverable by the
Cloy, Jointly and severally
from the principal and
surety, the sum of 9200,000
upon written notice from
City that Grantee has failed
to satisfactorily complete
the rebuild of Phase 1 and
as
Phe 2 and fully activate
throughout ,the I franchise
area. Any extension to the
prescribed time limit must
be expressly authorized by
the City Council, Such exten•
sion shall be authorized only
when the City Council finds
that such extension Is neces-
sary and appropriate due to
causes beyond the control of
the Grantee. Such bond shall
be terminated alter the City
douncil finds through resolu-
Isfactortlyt the Gompletedassat-
both
Phase 1 and Phase 2 of the
system rebuild and act•
Ivation of the entire system
to the expanded channel ca-
pacity. The rights reserved
to the City with respect to
such bond are In addition to
all whetherrreserVed by.s of thisi
or-
dinance or authorzed by
law, and no action, pro-
of a
g,
nwith respects to such
bond shall affect any other
rights eotnathSbond shall-contain
following endorsement:
It is hereby understood
and agreed that this bond
may not be cancelled by the
toteii renew nor exercised by the
surety until sixty (60) day
alter the receipt by the City,
by registered mail, of a writ-
ten notice of such Intent to
cancel or not to renew
E. Grantee shale at ifs sok
cost and expense, fully In-
demnify, defend and hold
-harmless the City,' its- of-
(leers, boards, commissions
and employees, against any
and all claims, suits, actions,
liability, and lodgments for
damages (including but not
may be changed by written) limited to expenses for rea-
otice to Grantee from time
+ curable legal lees antl lI s -
to time by Inc City Council to assumednbs hthe Iy Inc con -
reflect changing liability assumed by wi City In con-
limits. The Grantee shall no nectlon therewith):
city the City Attorney imme(1) To persons or property,
diately of any litigation the in any way arising out of or
may cause a claim to bqq through the acts or omis-
madeagainstthisinsurance.) cions a Grantee, Its ees-
y! vents, agents or employees
B.- The Insurance_pohc orto-whlch-Granlee's negll
shall'contain- the provislo gence shall In any way co
that written notice of cancel i tribute;
f:G1Kl Y.! .(2t
hl�im•ior n ass n df Ili
right of privacy, for delama-
ytion of any person, firm or
-corporation, or tor, the vio
latIon or infringement of any
copyright, trademark, trade
name, service mark or pat-
ent, or of any other right of
any person, firm or corpo.
ration (excluding claims
arising out of or relating to
City programming); and
(3) Arising out of Inc
Grantee's fallure to comply
with the provisions o/ any
federal, state, or local stat-
ute, ordinance or regulation
applicable to Grantee In its
business hereunder.
The foregoing indemnity Is
onditioned upon the follow-
ing: The City shall give
Grantee prompt notice of the
making of any claim or Inc
commencement of any ac-
tion, suit or other proceeding
covered by the provisions of
this section. Nothing herein
shall be deemed to prevent
the City from cooperating
with Grantee and participa
ting in the defense of any lits
gallon by City's own counsel
at Its sole cost and expense:
o recovery by Inc City of
any sum by reason of Inc Se-
curity Fund required in Sec-
tion 8 hereof shall be any lim-
itation upon the liability of
Inc Grantee to Inc City under
the terms of this section, ex-
cept that any sum so re-
ceived by the City shall be
deducted from any recovery
which Inc City might have
against Inc Grantee under.
the terms of this section.
SECTION 10. DISTRIBU-
TION, DISCRIMINATION,
AND RIGHTS OF INDIVID•
UALS.
A. The Grantee shall not
grant any preference Cto any
personitorsubject
clatssn of esub
scribers to any discrimina-
tion as to rates, charges, ser -
Nice, service facilities, rules
or regulations or in any other,
respect; provided, however,
that this section shall not be
deemed to prohibit bona fide
promotional activities by the
Grantee,
B. Grantee shall not den,
service, deny access, or oth
erwise discriminate agains
subscribers, channel users
or general citizens on th(
basis of race, color, religion
national origin, or sex'
Grantee shall comply at al
times with all other apply,
cable federal state and Iota
laws and regulations, and al
executive and dminis
trative orders relating t
nondiscrimination which ar
hereby Incorporated an
made part of this ordinanc
by reference.
C. Grantee shall stricti
adhere to Inc equal employ
ment opportunity require
ments of Inc FCC, state an
local regulations, and a
amended from time to time)
D. No signals of a Class IV
cable communications than
nel shall be transmitted fro..
a subscriber terminal fo.
purposes of monitoring indi
vidual viewing patterns o.
practices without Inc ex
press written permission o
Inc subscriber. inc request] I
for such permission shall b
contained in a separatedocu
ment with a prominent state
ment that the subscriber 1_
authorizing Inc permissio s
In full knowledge of its provl t
slons. Such written
mission -shall before Iimite t , g
Pad./
i(1) yeaof r, which-shato ll q
renewable at the option a f
yslna out. of env p subscriber. No _lit
shall be Invoked—foa us 6
,Z• serlber's f_adure, to'pr6Vide
or renew such an autThe hor
' shalil be revakabl0 3 u6iio
ime by the subscriber Wh
oufpenat5y of Any kind what
soever. Such a0!horizatfon
required for ea type
classification of Class..)
cable television activity
planned; provided however,
that the Grantee shall be en
titled to conduct system
wide or Individually ad
ressed "sweeps for the
iurpose of verifying system
ntegrity, controlling return
path transmission, or billing
for pay service.
E. The Grantee, or any of
its agents or employees,
shall not, without the specific
written authorization of the
City or of the subscriber in-
volved, sell, or otherwise
make available to any party:
(1) lists of the names and
addresses of Such sub-
scribers, or
(2) any list which in
dentifies the viewing habits
of subscribers
F. All programs of local
TV stations and local FM ra-
dio stations carried by the
Grantee shell be carried in
their entirety as received
with announcements and ad-
vertising and without addi-
tions.
SECTION 11. SIGNAL
DUAL( TY.REQUIRE•
MENTS.
A The Grantee shall pro-
duce a picture, whether in
black and white or In color,
that is undistorted, free from
ghost images, and accom-
panied with proper sound o
typical standard productio
TV sets in goad repair, an
as good as the state of the art
allows.
B The Grantee shall trans
mit signals of quat
strengh to produceducegoad plc
tures with good sound at al
outlets without cousin,
cross -modulation In the ca
blas or Interfering with othe
electrical or electronic sys
tams.
C. Minimum technical
standards will be mainta met
as outlined in Exhibit "A"
Form I, as proposed for th
26 channel capacity system
and as set forth in Grantee's
revised Form .I for the 5
channel capacity system.
D. The Grantee shall limi
failures to a minimum by to
cating and correcting mal
functions promptly, but In n
event longer than foryeigh
(48) hours atter notice
Whenever service Is inter
rupted to any subscriber fo.
any period of time In excess
of 48 hours, the subscriber
shall receive a rebate of one -
thirtieth (1/30th) of the sub-
criber's monthly service fee
for each day or part thereof
between the end of the 40
hours and time service Is re-
stored to proper standards.
SECTION 12. OPER-
ATION AND MAIN-
TENANCE OF SYSTEM.
A. The Grantee Shall rend-
er efficient service and make
repairs properly and
promtly, with normal ser-
vicecalls made within 24
hours f customer call In no
event will service calls be de.
ayed beyond the next busi-
ness day following said 24-
hour period. After normal
business hours, service calls
will be handled by a dispatch
ervice via telephone or a
wo-way radio to "stand•by"
echnicians. Experienced en-
neering staff will be avyail
ble Id work with "standby
echnicians in helping solve
more difficult problems. In
erEknotiol, service will be
onirfor go•• cause an
the shortest time possible.
i Such interruptions,_insofar
f s- pieta— hall 'be proud
end shall Deet
dyrt r od a minimum
syp tb�Y Graystnteem shall main
ain-'an office "in the City
which shall be open during
all usual business hours,
having adequate listed local,
toll free .telephone service
and be so operated that com-
plaints and requests for re-
pairs or adjustments may be
received on a 24•hour basis.
The Director of Public Utili-
ties shall be the responsible
City official to see that cus-
tomer service complaints
are properly handled. As
subscribers are connected to
the system, the Grantee
shall, by appropriate means,
such as a card or brochure,
furnish Information con-
cerning the procedures for
making inquiries or com-
plaints. Such procedure shall
include )he title, telephone
number, and address of the
person employed by the
Grantee to whom such in-
quiries
n-
ts should
00d.In
�rl ddressepinaddition,
the Information snail specify
that the City's Director of
Public Utilities Is respon-
sible for intervening in pus
tomer complaints which In
the judgment of the custom-
er have been unsatisfactorily
handled with the telephone
number and address of that
office.
C. All correspondence 1
and from subscribers, In
eluding customer com
plaints, will be time and date
stamped and retained by the
Grantee for at least three
years. A complaint form will
be completed for each com-
containindetails
ab uttthe complaint and the
action taken Such forms will
be time and date stamped
and kept by the Grantee for
at least,three years. A form
will be made out for each
service call to a subscriber's
residence containing a com-
plete record of+the service
call. Details of the time
taken, time dispatched and
time completed will b
stamped on the form. Such
forms will be retained by the
Grantee for at least three
years. Post cards for pus,
tomer comments will be sen
to each subscriber who hash
had a service call for an
evaluation of how the Grant
ee has responded to the com
plaint. Such cards will be re
twined by the Grantee for at
least three years.
D. When there have been a
'pattern of complaints made,
or where there exists other
evidence, which, in the judg-
ment of the City, casts doubt
on the reliability or quality of
cable service, the City shall
have the right and authority
to require the Grantee to
test, analyze, and report on
the performance of the sys-
tem. Grantee shall fully co-
operate with the City in per-
forming such testing and
shall prepare results and a
report, if requested, within
thirty (30) days after notice.
Such report shall include the
following Information. -
(1) The nature of the com•
plaint or problem which pre-
cipitated the special tests.
12) What system com-
ponent was tested.
(3) The equipment used
and procedurestaken intest-
ing.
(4) Thod, if,any,,(n
'
hitt 'such such ccomplaint o
problem was resolved.
' (5) Any other information
."pertinent to said tests and
analys s_whicb_may_be_r
quired
The C ty may-requlre'tha
gists be supervised b
t ne t a pro-
fessional engineer not on the
permanent staff of the
Grantee. The engineer
%hould'sfgn- a11' recortls' o
special tests and forward to
the City such records with a
report interpreting the re-
sults of the tests and recom-
mending actions to be taken.
The City's rights under this
subsection shall be limited to
requiring tests, analyses,
and reports covering specific
subjects and characteristics
based on said complaints or
other evidences when and
under such circumstances as
the City has reasonable
grounds to believe that the
complaints or other evidence
require that tests be per-
formed to protect the public
against substandard cable
service. City shall provide
Grantee in writing its
grounds for requestmgsuch
ests.
E. The service furnished
by the Grantee hereunder t0
said City and its inhabitants
shall be first class in all re-
spects and shall be such as
will insure the least danger
to life and property. Such
service shall at all timescon•
form to those technical
standards submitted by the
Grantee as part of its revised
proposal marked Exhibit
"Al." -and incorporated herein
by FeLference as well as FCC
tethhice! standards, and Oh-.
er applicable laws, ordl-
hindes, and constructjon
stagdards. In addition,
Grantee shall provide the
City{ upon request, with -
written report of the result
ofp-Grantee's annual pros of
rJdrformance tests conclude
pursuant to FCC standard
and req uirements.
Fl All installations all emade
gbyo the Grantee- shalle o In
substantial, safe condi
telt nntl malnfai tie inrsuch
:condition of all tfines.O 00.
Grantee shall make n0 ex•
cavatlons in the street, al -
leis and public piaces•with-
outfirst procuring a written
permit from the office of the
City's Director of Engine
ing and Physical Devel-
opment, and all work of such
kind shall be done under the
supervision of the Directs
and so as to meet the approv-
al
pproval of the Director. No charge
will be made by the City for
said permit.
G. All Installations and
connections of wires, cables,
and lines irom_Grantee's
equipment and facilities—I'
subscribers' residences an
buildings shall be made and
constructed so that openings
a 1 be waterproof and in-
accessible to insects and ver-
min. -
H. The Grantee shall In-
stall, at the subscriber's re-
quest, an efficient antenna
switch by which the sub-
scriber ,may easily and con•
venlently switch the tele-
vision receiver from the
cable Input to an antenna for
direct off"the-air reception
and Grantee shall at the time
of service connection so ad-
vise the subscriber in writing
that such a switch is avail-
able. Grantee may charge
for this service not more
than Grantee's direct pur-
chase price of such switch.
I. The Grantee Shall con•
t nue, through the term of
this franchise, to maintain
qualityof service and meet
operational and technical
standards. Should the City
find that )he-Graatee•:has
failed to maintain adequate
uality of service and meet
re tioDAL,e_n_djeShAliCel.
- .. .ci+rs.•
sranaaras, it snail species/
ly,-enumerate-s ucte l mpreve
menti to be made and sono•
of the Grantee in writing:
Failure 10 make such 9m=
rovements within three 13)'
months.of-,the,dateief cation shall be deemed a.Vio-
latfon of the franchise for
.which civil penalties pro -
Weed In Section 25(E) are
applicable.
SECTION 13 SAFETY
REQUIREMENTS.
A. The Grantee shall at all
times employ ordinary care
and shall install, maintain
and use commonly accepted
methods and devices for pre-
enting failures and ccl-
dents which are likely to
cause damage, Inluries or
nuisances to the public.
B. Grantee shall install
and maintain it wires, ca•
bias, fixtures, and other
equipment in accordance
with the requirements of the
National Electrical Safety
Code (National Bureau of
Standards); National Elec-
trical Code (National Bureau
dpf Fire Underwriters); Bell
-System Code of Pole Line
Construction; and any appli-
cable City Code. The instal-
lations shall not interfere or
conflict with any installa-
tions df;the City or of any oth-
er utility serving the City.
C, Grantee shall at all
lime's keep and mamtai5 in a
safe, suitable substantial
cdpdition, and in good order
dnd repair all structeres,
fines, ',equipment and Icon•
(fJlectiolis in, over, under, an
bIlOh eYsi' and/ public way( -0s,
placed of the CUy, whereve
situated or located.
D Grantee shall ma,ntai
a farce of one or more re
sidindi agents or employee
et 3111 times and shall heti
sUlffnent em to ees to 0
,l Vide /safe, adequate,
- proper services for its feed
Mies./
SECTION 14 CONS
VTIONS ON STREET '0
EASEMENT OCCUPA
4AAD' COMMON USER 1
LEASE OF FACI LITIES1
A. Grantee shall use t
poles, lines, conduits, ca e
or other facilities meth
rained by the telephone a`n
electric companies when an
where such facilities can be
obtained, provided satisfac;
tory agreements can be en•
tered into with said utility
companies, in lieu of con-
structing its own poles, in or-
der to carry its cables and
conduits and other equip(
ment that may be necessary
in order to conduct Its buss
ness In the City. In such case,
Grantee shall file a cert,ti-
cafe with the City Secretary
which will recite that such an
agreement has been entered
into, setting forth the terms
and duration of the agree•
meet.
B. Grantee shall not place
poles or fixtures where the
same will interfere with any
gas, electric or telephone f ix
tures, water hydrant or
main, or sanitary or storm
sewer and all such poles ort
other fixtures placed In any
street shall be placed at the
outer edge of the sidewalk
and inside the curb line, and
those placed in alleys shal
be placed as close as phys
ltally practicable to a old
ot line of the lots abutting oq
said alley, and then in such a
manner as not to interfere
with the usual travel on said
streets, alleys and publld
ways. Grantee shall be ret
quired to use existiing po
except where servlce'ms pro
tided by underground testa
�theasnae o
Ci-risen
y subdivis onofaihe'•bys}gm oorthe ate'
City where telephone aney"transfer, or owners
electric lines and cables arc fg,YwhicheV,er odcurs.first.',)
presently existspg anc d -D,"TraAstert0Ci y,,,,�
serving said subdivision anc+..-'or Upon exercise- of•this o
are -located below ground e (ion and the'payment of tl
'Grantee shall arrange to above sum by the City and
Place Its cables and wires be 1a service of official noticeI
w ground. Rear yard ease jn such acion upon Grantq
menti shall be used wher [h the Grantee shall imme5
ever feasible. Street right -of
way will be used only wit,
extreme care and as approv
ed by the Director of Engi
neering and Physical Devel
opment. Junction boxes
pedestals, or other strut
tures shall be located so the
markings are on the privet
property side rather than the
street right-of-way. Where
said telephone and electri
lines and cables are located
above ground, Grantee may
arrange to place its cables
and wires below ground,
with the approval of the Di -
actor of Engineering and
Physical Development.
D. In any case of disturb-
ance of pavement, sidewalk,
driveway or any portion of
the public right-of-way,
Grantee shall submit to the
satisfaction of the Director
of Engineering and Physical
Development plans and
specifications for`such work
for approval, Grantee shall
in a manner arrequired by and
approved bythe Department
of Engineering andPhysical
Development, \replace and
restore all paving, side,-
waiks, driveways or surface
of any street or'a l ley disturb
ad, in as good a condition as
before said work was'cam•
n)enced, and shall maintain
the restoration In an approv-
ed
pproved condition for a period of
, one 11) year. Upon Installa"
, tion of underground cable
system, all streets having
concrete hot -mix asphalt, or
interred penetration surface
wIlh curb and gutter con-
struction, shall be bored and
cables installed In casing.
E. In the event that at any
time during the period of this
franchise the City shall law-
fully elect to alter, or change
( grade of any street, M-
O; or other public way, or
vacate or abandon the same,
Grantee, upon reasonable
notice by the City, shall
forthwith remove, relay or
relocate its poles, wires, ca-
bles, underground conduits,
manholes and other tele
phone fixtures, at its own ex
,pense. City shall have the
right, at all times, to require
Grantee to change the loca-
tion of any pole, condu1L line
or facility when, In the opin-
ion of the Director of Engi-
neering and Physical Devel"
uprnent,-the public
convenience requires such
change, and all expenses
thereof shall be paid by
Grantee. In the event a
street or other public way Is
abandoned, Grantee shall re-
move all of Its facilities
therefrom, nitestore the
promises without delay or
cost to the abutting owners
er City
F. The Grantee's use of ex-
isting utility easements,
streets, alleys and pubic
ways may be prohibited In
those instances where, In the
gp nlon of the Director of En-
gineering and Physical De.
velopment, said easements,
streets, alleys and public
ways are overcrowded due to
the present existence of 5111 -
sty systems and equipment.
G, The Grantee's use of
MO easements; streets, al;
eys and publ(c ways shat l be
(,said easements by the ores.
ed tot use of.
y ately transfer to the City.
b session and title to all fa
6- ities and property, real a,
,e personal, of the CATV sq,
,.'tem, tree from any and
y liens and encumbrances n�
- • agreed to be assumed by ti
r City in lieu of some portion
e the purchase price set for
above; and the Grantee sha
e execute such warranty dee
, , or other Instruments of co
veyance to City as shall
-1 necessary for this purpos
!The Grantee shall make it
, I condition of each contra
with extends beyond the pi
,h rind at which the City has 1
-I option to acquire the syste
and entered into by it wi
reference to its operation,'
der this franchise that 'jt
� contract shall be subject,
the exercise of this option
the City and that the el
shall, have the right to su
n
teed to all privileges and p
t ligations thereof upon the e
E ercise of such option.
t E. Procedure for 1'
chase. ti
Whenever the City Coegc
orders that notice be given t
Grantee that the City desir
to purchase the CATV sy
tem, the City Secretary sha
cause such notice to be giv
to Grantee In writing With,
sixty (60) days from the dist
Grantee receives such w i
len notice, Grantee shall sb
mit td•ihe City Manager
complete de(alled inventor
of GraMee,s tangible asse
for the franchised CATV sy
,ndicatingtlJheq location/,
such, asset,, and, Grantee
' best estimate of the fair vis
ue of such 'kssefs ,The GJ
and Grantee ihati,have a
riod of slily (60) days aft
the City's receipt of the of
resaid Grantee's inventor
maps, and best estimate,
value in which to agree upo
the value
F. Arbitration of ValUe an
Costs �3
(1) In the event City art
Grantee cannot agree upon
the aforesaid value of th
CATV system, the valu
shall be determined by
board of arbitrators compos
ed of three members as se
forth below. .
(2) Arbitration shall co!
mence and proceed accord
Mg to law as follows: 1
(a) Within fifteen (15
days following the sixty (60
day period described ,n subj
section E above, the City an
Grantee shall each appoin
one arbitrator both of whore
are experienced and know)
edgeable in the valuation o
cable television property
These two arbitrators shat
agree upon selection of, an
shall appoint, within (Meer)
(15) days} the third arbi
trator who ms similarly qualm
fined and who is a Texas reg
,stereed professional
engineer If Grantee either
fails to furg,sh to the City the
inventory and maps required
within the
a time ens
E , .p i pre),
scribed in subsection E
above, or fails to appoint it
arbitrator within the fifteen
(151 day period described
above, the City Council ma
appoint 'the arbitrator 1
•Grantee if: the two arb
6 tratorsita,ltoiagree uportan
tappoint The. third arbitrate
vdtbi dne::pe,Mri 'time.
riid;#he thl iTtaltratar^n)
a ected•in1he m
may be se l an
.peLdescribeE in Article VIII,
-Section 5(k)(3) of the Cit
Charter (see Exhibit "D" at
tached hereto).
(b) Within twenty (20)
days intment o
the third after arbitrator and upon
five (5) days advance writ
ten notice to the City and
Grantee, the board of arbi
trators shall commence a
hearing on the issue of value
ation.
(c) The hearing shall b
recorded and transcribed a
the request of either City a
Grantee All hearing pro
ceedmgs, debate and deli
erations shall be open to the
public and at such times and
places as contained in the nod�
I trace or as thereafter publicl9
(stated in the order to add
lourn, except as otherwis
authorized by the City Atto
n d) At the close of the hea
ings and within forty(iv
145) days after appointmen
Of ;the third arbitrator,. th
board shall prepare findin
and decision agreed upon b
e majority of the boar
which shall be filed with th
City and served by mail upol
the Grantee. In the event ihf
board, or a majority thereof
fails to make a decision with
in such tulle period, the pro
ceedings of this board shal
become null and void and a
neW board of arbitrator
shall be chosen in like man
nen and the arbitration pro
cedures set out in this sub
section F shall begin anew.
l7
(e) The decision of the
Beard shall be final andel
binding upon the City and
Grantee.
.(j) Either City or Grant'
may seek judicial relief
h� folliwng circumstances:
c (I) the Cly fails to sere
an'arbitrator;
'"(i,) the arbitrators fail t
sesta t rarbitrator
i se
less a third arbitranor rs se
furled in the manner se
forth in Article VIII, Sectio
5(k, )(3) of the City Charter;
(iii) one or more arbitrate
s unqualified;
(iv) designated time limit
have been exceeded;
(v) the board has not pro
ceeded expeditiously; and
(vi) based upon the recory
the board abused its disc
cretion
(9) In the event arcourt of
ALT IES. FOFThe vt0 *Non
'' any of the following pro
- stens of this franchise, pen
ties, shalt be chargeable
pnthe Security Fund as f,
to � lows.
60 A. For failure by
Yl Grantee to complete t
• 1 Phase 1 of the system rebu
j expanding channel capacl
e, to a minimum of 26 chann
and be fully activated by rj
• i later than May 1, 1992, fi
-• City may withdraw from
t security Fund Two Hund
•' Dollars (5200.001 per day
- each day, or part hereof, t
Ii deficiency continues.'
B. For failure by t
IP Grantee- to complete
3, Phase 2 of the system rebu
f. expanding channel cepa
to a 54 channel capacity s
tem and be fully activated
no later than May 1, 19
City may withdraw Irom
Security Fund Two Hund
Dollars (1200.00) per day
1 • each day, or part thereof
deficiency continues.
Li C. For failure by T
j Grantee to provide, ma
,r E' tone replace and ma
2 available channfitle:equ
ment, studio faG4,tles,
a9putss._+Qct abU� 1
sired dr Section 22, CI
sp may Withdraw tram -the
`s cunty Fund One. Hund
Dollars (5100 00) per day
each day, br part thereof,
:.m.a netc)ency,coptmues,
Cr. For fa jluretby'-
-. Grantee toP rovideextensi
• of service in accordance w
-, Section 15, unless the C
tl Council specifically appr
p es a delay by motion or re
e lotion, due to the occuren
of conditions beyond Grar
tee's control, the City ml
withdraw Two Hundred Di
9 lars (6200.00) per day f
each flay, or part thereof, t
.5 deficiency continues.
E E. For failure by t
2 Grantee to provide dal
documents, reports, info
/,.. afro; as required by S
tions 9, 12, 14, 18, 21 and 2�
the City may withdraw fro
the Security Fund Fifty Do
tars (550.00) per day for ead
Y, or part thereof, the
vi
10tion occurs or continues.
(4)..Alemtvade art
5. of the provisions visions of this lr
{ cride deceitor pcacti.s94)10 any it
p or e upo0)1 Manager
a Chy
B The CrtN Magedna
F. For failure by th
Grantee to comply with qua
Icy of service or operationa
or technical standards f0
lowing the City's written na
lice directing Grantee t
make Improvements pur
want to Section .12(I), Cit
may withdraw from the S
curity Fdnd Two Hundre
Dollars (5200.00) per day fo
each day, or part thereof, th
violation ceinhnues
G For failure by ih
Grantee to comply with the
City's written notice direct
Inc. the Grantee to provide in
be.reponsible, to see that all t
terms and conditions -0M fit
and per
n
franchisemed are met
formed o the event d aft It
Ia Inc above mentioned vi jn
talions, the such ac Manage `�•
she/take rion c Id
essaryrenin proper to r enforcis1
•
or terminate the franchise
Prior to any forfeltur s
against the Grantee, Cit
shall give Grantee at leas
thirty (30) days advanc(
written notice of such pro 41
posed forfeiture, which writ III
ten notice of proposed for iId
tenure shall state clear)
wherein the Grantee e ha
failed to comply Y e P
with isr14
visions of the franchise,
recommended cure, the tim� e
to cure, the persons in a fY
thorily to whom response d
e
should be addressed, an br
such other procedures al e
may be specified by the Cityj a
If Grantee fails to cure such
deficiencies within the t,rn
prescribed In the notice of t
proposed forfeiture, Inc Cit/
Council may revoke the Iran b
chise by forefeiture ata pub
lie hearing held for such pur e
pose after the City has given
Grantee at least ten (10)
days advance written notice 5
of such hearing. Grantee
shall have the right to partici
I pate a5 a party to such hear- e
refusal of the City Council d
i-6ch-rate'revlsion �eest-,tom orpus Chr'peration
(2) The'C)ty Council char The documents listed above
setthe'daf1 and time for MA t' shall mclude sufficient detail
11(c hearing on audh rate n5 and/or footnotes a,s may be
vision requests within a let, necessaryt0 provide the Ctty•
sonable-period'of.time•ant, with Inc ihformatlon needed !
) shall render a decision on the to make accul'ate determma• i,,
request within a reasonabl Iron as to the flneneial condi
period of time following th,, tion of the system. All Finan=
public hearing. tial statements shall be
(3) Within 10 days 01 111 certified as accurate by an
date for Inc public hearirp1 officer of Grantee.
which has been establish' SECTION .24. CITYI
by the City Council, tt RIGHTS OF FRANCHISE
Grantee shall notify its s(, A. The right is hereby re-
,scnbers of the hearing by al ll served to the City or the City
nouncement on at least t, s Council to adopt, in addition
channels of its system ti f to the provisions contained
tween the hours of 7.00 P. t herein and in existing appli-
and 1000 p.m for five col , cable ordinances, such add,-
ve daysis hearing.
11 Ire regulations as It shall
Sequtt 9tion!
P9
e date of the public hearing. find necessary In Inc ex -
(11 The C, . findCouncil a co provided, that such regh-
In Ib 1 oa alysis of t to a @ talions, by ordinance or nable
In the analysis of the r erwise, shall be reasonable
- quested rate revision. Cos , and not in conflict with the
of such consultants shall bit rights herein granted.
borne equally by the CityanlI• B. The City shall have th
YInc Grantee. 1e right to inspect the books
(5) The Grantee may no; records, maps, plans, n5
Y
Institute any legal action ti come tax returns and other
contest any rate, charge o. like material of the Granted
fare fixed by the City Count . at any time during norma(
until the Grantee has filed business hours.
' motion for rehearing wit CC`[ C. The City shall have th6
t
the City Council speclficall ki right, during the life of thif
setting out each ground of it franchise, to install ani
- complaints against the rate maintain free of charge upor
chargeor fare fixed by th the poles of the Grantee an
City Council, and until th wire ndpolefixtures nep8
Council has acd upon such sary for City alarm sy0te
t motion or until a period of6W{Is an Inc condition that suer
days has elapsed ' wire and pole fixtures do nd
(a) Nothing herein shall 'interfere with the CATV op
shfuhng proceedings � r g P
vise rates. ,struction or installation
stallation of outlets and ser 1n SECTION 27. PURCHASE Ie
vice to schools, colleges, an OF SYSTEM BY CITY.
junior colleges pursuant t A. Rights to Purchase.
• Section 21, V(D), City ma In the event the Granteg
Y withdraw from the Securit 1 forfeits or City terminates
t Fund Two Hundred Dollar this franchise pursuant el
(5200.00) per day for eat or
of this ordinance;
day, or part thereof, that th r at the normal expiration
violation continues. ++ of the franchise term. City
H. For failure by ilii/ shall have the right to pur{
Grantee 10 test, analyze, an(( chase the CATV system i
report on the performanti, accordance with the follow
. on the system following a r�
1 quest by the City pursuant
t1
Sections 11, 12 and 28, CM
may withdraw from the So
Icy Fund Two Hundre
i Dollars (5200.00) per day to
each day, or part thereo
that such noncompl lane
continues.,
I. For failure by the Gran
ee to active te,the two•da y ca
pability pursuant to Sectio
✓ 22, VII, City may withdra
L.
from the Security 7:40000
und On
- Hundred Dollars (5100 00
per day fur each day, or pal
thereof, !het such service 1
t not provided. ++
J. For failure by the Grant
ee to provide continuity dddddd
service as required in Sec'
tion 17, the City may wit
- draw from the Security Fun
Two Hundred =Dollar
ri200 00) per day for eat
day, or part thereof, ilia
h service is not provided
SECTION 26. FORFEIT
. 1(0E 09 FRANCHISE.
A. In addition to all othe
rights and powers pertamin
6 to the City by virtue of the
franchise or otherwise, thf
City reserves the right tote l
minate this franchise and a
s rights and
privileges of th
Grantee hereunder m th
event that the Grantee:
(0 franteschise
any any rsio
ue
or this frdetermi a any rule
order or determination of }h
City or City Council mad
'pursuant to this franchise;1
▪ (2) Becomes insolvent, u
able or unwilling 10 pay i
debt, or is adiudged ban quested and financial doe
upt, . , mentation for such rate
(3) Attempts to.dispose vision. Failure of Grantee
any-of-the-facintiey or pr .$ ^proilrde City with such, fu
er49 of Its CATV .business f' 'complete, and'detaliedinfo
prettent the City from; pu 7 %, melon and_ financial dot
tbasing same; as—provide mentation after regUest
(d rat; . - - , J -.the City,shal I-be-rea
Ing provisions and the provil
slons of Article VIII, Section
5(k) of the City Charter
which is attached hereto and
ncorpo aced herein as Ex{
Mbit Dhe The procadures
fet forth herein are available
or any of the purposes sn-ire
forth abate and may be com-
menced at any time whether'
or not they are commenced!
within the last two (2) years'
of the term of this franchise.
deemed to prevent the Cit ` oration of the Grantee.
on its own initiative from in I D. The City shall have 1h1
to re ht to su erv(se all con
wor
E. Rates charged for ad I performed subject to the pr
vertismg by the Grantee wi 1 visions of this franchise an
not be sublect to City regu 1 make such inspections as 1
lotions, but shall reasonabl shall find necessary toinsur
reflect system sire, demon 1 compliance with the terms o
for advertising, and siren this franchise and other pe
tinent provisions of law.
E. Al the expiration of 1
of origination programmm(
h and will be subject to the
franchise fee. Such rates
le however, shall be filed wit
'n the City Secretary and she
- be applied without discr)m
d nation
F. Rates charged fa
leased channels can be ne9
- Hated, but shall reasonabl
reflect cost of service, lengt
of contract, and demand to
- leased channels. when e.
e tablished, the rates shall ti
r filed with the City Secretar
Lease Channel rates will n
(2) Rates for the instal
hon and connectlorr of -1)
r_ ^vices, Including converter
i- (3) Rotes for the 9100151
e of pay television services
subscribers tojhe extent fh
no other governmental enti
or agency has preempted j
1e risdiCl(on. •
C. The Grantee shall ha,
the right to conduct prom
clonal campaigns to the ge
to
era' public without discr((q
nation which perp)
d
subscriptions, conflectior
's and installation to the 51
tern at a lesser rate th
I.I
those approved by the C
Council.
D. The Grantee or the C
e
may, from time 10 time, 5
c tablish revised rates for se
vices The following pr
tenures are hereby adopt)
to provide for a method for
e be sublect to Cny regulator
y but ill fie subject to 115
4 franchise fee. dj
G. Rales charged for
-s•verfising and leased char
i, nets shall be considered as
(.'part of the gross incom
• 015119 rates:
e
petition With the City Cae shall ro
F containing full and detail
information concerning 1
rate revisions being r
e'when determining reaso
f ableness of rates. 1
1, H The Grantee's petitio
tor
lude,rbut notbe increase lim ted thall o
the following financial qq
s ports, which shall reflect th�
- operations of the Corpu
1 Christi system only.
(1) Balance Sheet
term for which this franchis
is granted, or upon its term
nation and cancellation, a
provided for herein, Inc Cit'
hall have the right 10 re
quire the Grantee 10 remav
at its own expense all po
lib -ifs- of the CATV system
from all public ways•wlthi
theCity.
25. CIVIL PEN;
IV Construction of off Ii
and studio facilities
Grantee will construct pe
manent offices and studio
cilities within the corporal
limits of the City. Grant
will complete construction
B auch permanent offices aq
`studio facilities on or beton
••November 1, 1982, and 000)
ped as provided for In Exh)
te A, Form K of a quality be)
sr than or equivalent to th
specified equipment. If th'
Grantee has not complete,
construction of said facllitle
by said date, Grantee she
� ,be subject to the civil pena
I' (2) Income Statement ` .ties provided in Sectio
• (3) Statement of Source 25(C)'
V. Installation and servic
o and Applications of Funds ' ao public butidin95, pub)
11 (4) Detailed Senses. 11 -schools, and public in
Schedules of Expenses, I titutions of higher educe
come, Assets and oche {ion.
(terns as may be required. A. Grantee shall provldl
(5) Statement of Curren free installation of one out!
and Protected Subscriber and monthly basic servi
and Penetration. - without charge to all pubs'
The Grantee's accountin buildings and facilities a
. records applicable to tot may now or hereinafter d
' Corpus Christi system shat designated by Inc City. Add
• beavaflablefory9910 sty t(onal outlets shall be pr
Corpus Christi by the Cty a v)ded by the Grantee at
11 reasonable limes Th cost of installation time a
; record Of
-access t�i `materials furnished_
.records of financial transa ▪ Graptee; Notice of. such
,�a
hops torthe purpose of vers i , /9001109 will be tranifdiil
t-fYg19'allocatad, oK'o}her in to Granteeb the. Cit (a
dtt€SCdSts.Adieora�e(ItIb.a9Errr y- -- -
B"On er before May'I
1902, Granteeshall cornple
Icing andior 5ati5facto
j 'repair to wiring all of pub
school buildings construct
r prior to November 1, 1179,aaj8
t ack of t ende7
the
located
Corpus Christi Upon the 51
stallation of the wiring a
completion of repairs to e
sting wiring in-accordan
with plans and specificatfor
submitted by the school dl
trent to Grantee In ativan
f such work, and after a
ceptance 'by the individu
school districts, Grantee w
transfer maintenance a
upkeep of the installations
the individual school di
mets Grantee shall provi
without charge a cable
fo
pti 1, drop 0 or bent
May 1, public
Beach present
09 • g o school bull
Ing constructed on or aft
November 1, 1979 as may
designated by the indivld
school district or within
months for any other new
'constructed building Gra
shall provide month
basic service to public sch
buildings without charg
-Additional outlets shall h
,provided by Grantee a
,Grantee's cost of actual i
stallation time and materia
furnished.
C. Grantee shall provi
free installation of one outlt
and monthly basic ser
I
>v)thout charge to each act
demic building of Del Ma
Junior College and Cored
Christi State University, c
to any other public Ir
5t,tution of higher educatlg
which may be located in Co
pus Christi in the tutur
Upon request from the go
ern1ng body of the entity, a
ditlonal outlets shall be pr
vided by the Grantee at
cost of actual Installafrc
time and materials fug
nished by Grantee. Upon ill
completion of instal10(02
Grantee shall transfer mal
tenance and upkeep of sa
Insta nation 10 the applIcab
institution after cceptana
within a reasonable time 1
rod by such institution.
D Should the City find th
the Grantee has failed to pr�
vide installation and serviq
to public schools, colleges, d
junior colleges within a rel
sanable time period from to
date of such request, the Cil
will specifically notify
enumerate to the Grant
the Installations and service
to be provided in writint
Failure to make such instal
lotions and provide servid
within three (3) months 1
the date of notification wi
constitute a breach of a co
n itron for which the re ed
of Section 25 is applicable
E. Grantee will make it
studio and production equl
ment available to the sch
o�
districts, colleges, and (un(o
colleges for origination c
programming and oche
educational purposes at n
cost as provided In Exhibl
"A", Form K. Failure to pry
vide such service shall su
lett Grantee to civil pens
ties provided In Sectio
25(C),
VI. Additional facilities.
Grantee shall make avail
able a mobile van and pot
table equipment bank as de
scribed in Exhibit A'1
Form K by no later than N
vember 1, 1982 Throughod
the duration of the franchis
Grantee shall adequate!
ma rntam and replace a(n
essary such equipment
Grantee's' cost., Such r
pfocemeriif egUipment shy
is of a gbatily better than
a
upon by the City. Such re-
quesis..will_onl be consort: by the City whc-heveran
access channel is utilized at
leastoiwentyfour 1247 hours
per -seven (7) day week
prIme-time„400 p.m to
10:00 p m.), eighteen"(18)
hours of which are non -repet-
itive programming. If in th
opinion of the City, the ac-
cess channel as become
fully utilized, as herein de-
scribed the Grantee shall
have six months in which to
make a new channel avail-
able for the same purpose,
provided however, that the
Channel expansion man-
dated by the subsection shall
not exceed the channel ca-
pacity of the system.
C Penalties for failure to
provide' access channels and
support shall be deemed civil
tipenalties as provided In Sec -
on 25(C).
0 Grantee shall cooperate
fully with such organization
as may be designated by the
Clty Council through sepa-
rate ordinance for the gov-
erning of access channel use
The City intends to insure the
availability of the access
channels to the citizens of
Corpus Christi for public and
religious expression, educa-
tional purposes, community,
Information, and debate on
public issues. Until such)
time as such organization 1s
established, Grantee shal
require users of such than
nets to'follow the rules gov
erning access channels Will
zatlon sat forth In Exhib
,. A", Form K. Grantee an
City agree that educationa
authorities of the five inde
pendent school districts, co
leges and junior colleges wi
be granted sufficient time t
formulate rules governln
r scheduling of programmin
of
f respective access chan
nils dedicated for use by the
respective educational corn
munity, and that such rules
when formulated,_shali be
utilized by the Gra'ptee and
all parties Involved. Such
rules shall be subject t0 City
aOnreval - - _
Iv Construction of office
and studio facilities.
Grantee will construct perry
maneniotflees and studio fa-
cilities within the corporate
I;mits of the Grantee
will complete construction of
Such permanent offices and
studio facilities on or before
November 1, 1992, and equip -
d 5 provided for in Exhib-
pas
Form K of a quality bet-
ter than or equivalent to the
specified equipment. If the
Grantee has not completed
construction of said facilities
by said dale, Grantee shall
be subjectio the civil penal-
ties pro/ided in Section
Try Installation and service
. public buildings, public
Chords, and public on
stitutions of higher educe
tion.
A Grantee shall provide
ree installation of one outlet
and monthly basic service
without charge to all public
buildings andfacilitier be
f,7e iagnated by the City! Addi
ti n I outlets shell be pro
video by the Grantee at 8
cost of installation time and
atenals furnished by
Grantee, Notice of such des
factor
ignation will be transmitted
to Grantee by the City Man
ager
B. Or or befall May 1
1982, Grantee shall complete
iraIr'ta norineaatf alg t-publi
rchool b wiring cons)r u to
school buildings consfructe
riot -p November 1� 1979, 1
ch•of .)hpp„ ndependenl
hoola.distrdcta.locat lJ1
n ha Ir.
Cra slh1 t
s I
,.or u Do
P
I i '-f th' wiringan
lama tion
f
R
f repairs to x
Poor ,tion p e e
P P
.I
w s `n act ratio
sem Ito o
9 9�"
with plans and speohwtiou
Itubmt0 Gd by Grantee
0 a, v nce
glisa
ltnct-to Grantee in advance
'of such work, and after ac
ceptance by the individual
school districts, Grantee will
transfer maintenance and
upkeep of the installations to
the individual school dis
tracts Grantee shall provide
without charge a cable re
caption drop on or before
May 1, 1982 to each presently
existing public school build-
ing constructed on or atter
November 1, 1979 as may be
designated by the individual
school district or within 12
months for any other newly
constructed building. Grant
ee shall provide monthly
oasic service (0 public school
buildings without charge.
Additional outlets shall be
provided by Grantee at
Grantee's cost of actual in
stallation time and materials
furnished,
C. Grantee shall provide
free Installation of one outlet
and monthly basic service
without charge to each aca•
deltic building at Del Mar
Junior College and Corpus
Christi State University, or
to any other public in
st(ution of higher education
which may be located in Cor-
pus Christi in the future
Upon request from the gov
erning body of the entity, ad-
ditional outlets shall be pro
v"ded by the Grantee at a
Cost of actual installation
time and materials fur
nished by Grantee. Upon the
completion of installation
Grantee shall transfer main
tenance and upkeep of s d
nstallation to the applloble
livnstitution after acceptance
Rhin a reasonable time pe
rood by such institution.
D Should the City find the
the Grantee hasfailed to pro
vide installation and service
to public schools, colleges, or
junior colleges within a rea
date of such rnable time equesteriodfthe Cit
rom o
will specifically notify an
enumerate to the Grantee
}he Installations and services
to be provided in writing
Failure to make such instal
lotions and provide servic
within three (3) months o
the dt luttee a breach oaon f a conil
dation for which the reined
fof Section 25 Is applicable.
E. Grantee will make It
�
studio and production equip
alert available to the schoo
districts, colleges, and unix
colleges for origination oI
programming and othe
educationaldpurposes at iia
"1 as provided in Exhib,
A", Form K. Failure to pro
vale such service shall sub
ject Grantee to civil penal
ties provided in Sectior
25(C).
VI. Additional facilities.
f Grantee shall make avail
able a mobile van and per
table equipment bank as de
scribed Exhibit "A"
Form K by no later than N
vember 1, 1982. Throughou
the duration of the franchise
Grantee shall adequate)
maintain and replace as ne
essary such equipment a
Grantee's cost. Such re
t lacement equipment shal
be of a quality better than o
equivalent to the equipmen
being replaced. Failure 1.
maintain or repplace' Ode
equitee.t0'Wlll 5o1lec
Grantee. to ,dlvil•,pe0'altle;
rovideda Stiction25(G)
NNNNNN VII, rape. Da
nd abt)9aftona.a6''
7y' tee sr a , ring tl¢
'phase 2 rebuilt; Construct ■
"two-way capable system,
,thin three (31 years from
he -date= oh'the frandthse
award, the Grantee shall
provide at its cost a business
analysis of the feasibility of;
the activating two-way capa-
bility If the analysis n�
'menda feasibility and de'
mend for such activation,
the City Council, at its op-
tion, may require such act-
ivation, and the Grantee
shall activate the two-way
capable system within a rea-
sonable time not to exceed)
six (6) months from the date
of such City Council action.
Prior to such business analy-
sis, if institution applies to
the City for two-way act-
ivation, and it is sub-
sequently determined by the
.City Council that such act-
ivation would be in the best
interest of the subscribers as
a group and the general pub-
lic, Grantee shall activate
'the two-way capable system,
Thin a reasonable time not
to exceed six (6) the
from the date of such City
Council action- Failure t
comply with this section
shall subjecte
Grantee to the
civil penalties provided in
Section 25(11,
SECTION 23. PROVISION
FOR RATES AND
CHARGES FOR SERVICE.
A. In accordance with Ar-
ticle VIII, Section 7 of the
City Charter, the City Coen.
col shall be empowered to de-
termine, fix and regulate the
harges, fares Sr rates of the
'Grantee and from time to
time to alter or change such
rates
B. The City shall fix and
regulate. Yate -for services
which shall Include, but not
be limited to, the following:
(1) Rates for the provision
t of basic service to
•
scribers:
(2) Rates for the Installa-
tion and connection of ser•
vices, including converters
(31 Rates for the provision
Of pay television services to
subscribers tot heextenf that
no other governmental entity
or agency has preempted I0.
nsdiction.
C. The Grantee shall have
the right to conduct promo-
tional campaigns to the gen
eral public without discrim,
nation which permit
subscriptions, Connections,
and installation to the sys
tem at a lesser rate than
those approved by the Cit
Council.
D. The Grantee or the Cit
may, from time to time, es
tablish revised rates for ser
vices. The following pro
edures are hereby adopte
to provide for a method fo re
vising rates:
(1) The Grantee shall file
petition with the City Counci
containing full and detaile
information concerning th
rate revisions being re
quested and financial docu
entation for such rate re
Failure of Grantee t
provide City with such full
complete, and detailed infor
oration and financial docu
mentation after request b
the City shall be reason fo
refusal of the City Council o
such rate revision request.
(2) The City Couhcil shal
set the date and time for pub
Imc hearing onsuchrate-re
l-vision'requestt Within a rea
'1sifneble- period ohtime an
shall renders decision ori ih
regLest Stlif rrY a reaionbbl
pbriod of Nene-100X - t
public hearing,""3-
•
•
ll
Days or ihe'�-SECTION 24. C (.T Y
dale-for"flt 'ptJbtic hearin•, . A. RIGHTS_OF FRANCHISE.
which has Dean establlshe. A. Tfie right es hereby re
by. the' City COun'c11, th , Served to the City Or the CitIlan V _-
Grantee fthettotlfy its ill
^ •o (Ole to adopt o addition !! _.....
sttibersdffhehearinpbyan' o the pravislons contaipel
'nounnels of it 9)10 ,S5t� Twit aceto and'in exishnq appli-
channels of Its systetfl'-be able brdmances, such addl-
iwden the hours of 7.00 conp.m tonal regulations as it shall
and 10:00 pm. for five con• find necessary is the ex -
date ve days preceding the ercise of the police power;
date. The public hearing Provided, that such regu-
(4)- The City Council may, latrans, by ordinance or oth
at Its option, employ 8 con- erwise, hall be reasonable
sultant or consultants to ala and not in conflict with the
in the analysis of the re- rights herein granted.
B The City shall have the
.0)50111 rate revision. Costs right to inspect the books,
of such consultants shall be records, maps, plans, in -
borne equally by the City and come tax returns and other
the Grantee. like material of the Grantee
(5) The Grantal may not at any time during normal
institute any legal hares to business hours
infest any rate, charge or C The City shall have the
fare fixed by the City Council right, during the hie of this
ill the Grantee has filed 8 franchise, to Install and
motion for rehearing with maintain free of charge upon
the City Council roundiof fly iiia poles of the Grantee any
setting out each ground of its wire and pole fixtures neces-
complaints against the rate, sary for City alarm systems
charge or fare fixed by the ole the condition that such
City Council, and 0011 the wire and pole fixtures do not
Council has acted upon such interfere with the CATV op -
deemed
tion or until 8 period of 60 oration of the Grentee-
tlays has elapsed I D. The Clty 5h811 have the
(61 Nothing herein shall be fight to supervise all Cnn-
deemed to prevent the City structlon superor ise an work
on Its own initiative from In- performed subject to the or
stitutmg proceedings to re- visions of this franchise and
vise rates. make such is franchise
his as it
ver
E. Rates charged for ad- shall find necessactions sure
not b mg by the Grantee will compliance with the terms re
001 be Subiact to City raga• this franchise and other per
of
ref,ons, but shall reasonably tinent prcision9 of law
effect system size, demand E At the expiration of the
for advertising,tro000 strength term lar whlchirationnchise
of origination programming -5 granted, Or upon its fermi -
however,
will be subject to the nation and cancellation, as
franchise fee. Such rates, provided for herein, the City
however, shall be filed with shall have the right to re-
quire the -Grantee to remove
at. its own expense all_per-
tions of .tho CATV system
fheromCity-
ell public ways within
SECTION 25, CIVIL PEN•
ALT IES. For the violation of
any oil the following M. ovh
dons of this franchise, penal-
ties -shall -be chargeable to
thelows Security Fund as tot-
A- For failure by the
Grantee to complete the
Phase 1 of the system rebuild
expanding channel chancels
to a minimum of 26 channels
and be fully activated by not
later than May 1, 1982, the
City may withdraw from the
Security Fund Two Hundred
Dollars (5200.00) per day for
each deficiency or contra hereof, the
B. For failure by the
Grantee to complete the
Phase 2 of the system rebuild
expanding channel capacity
to a 54 channel capacity sys-
tem and betully activated by
no later than May 1, 1986,
City may withdraw from the
Security Fund Two Hundred
Dollars for
ach days0
or0part 00) the ter hereof the
deficiency continues.
C. For failure by the
Grantee to provide, main-
tain, replace and make
available channels, equip-
ment, studio facilities, per-
sonnel, and mobile van as
pecifled in Section 22, City
may withdraw from the Se•
urity Fund One Hundred
Dollars (5500 001 per day fo
each day, air pari thereof, th ,
deficiency continues.
D. For failure by th
Grantee to provide extension
of service in accordance with
Section 15, unless the Cit
Council specifically approv
es a delay by motion or reso
luteon, due to the occurence
of conditions beyond Grant'
ee's_contro6.,ihe- City- mal
withdrew YWa Hbndred D)ol
t"eachd0yy,,'ddrgparghere f,thi
the City Secretary and shall
be applied without discrimi-
nation ,
F. Ratesharged for
teased channels can be eqq
bated, but shall reasonably
reflect cost of service, length
of contract, and demand for
leased channels When es-
tablished, the rates shall be
filed with the City Secretary
Lease channel rates will not
be subject to City regulation,
franchise
t will
bee subject to the
G. Rates charged for ad
vertis(ng and leased than
nets shall be considered as a
part of the gross incoml'
when determining reason
I ableness of rates.
H The Grantee's petitio
for a rate increase shall in
elude, but not be limited to
the following financial re
ports, which shall reflect thl
operations of the Corpu,
Christi system only.
(1) Balance Sheet
(2) Income Statement
(3) Statement of Sources
and Applications of Funds 11
(4) Detailed Supporting
Schedules of Expenses, Irl
m
Come, Assets and other,
items as may be required.
(5) Statement of Curren
and Pro)ected Subscriber
and Penetration.
The Grantee's accountin
records applicable to th
Corpus Christi system shal
be available for inspection 1
Corpus Christi by the City a
II reasonable times. Th
City shall have access td
records of financial transac
tuns for the purpose of vers
fying allocated or other in
direct costa prorated to the
Corpus Christi operation
The documents listed above
shall include sufficient detai
and/or footnotes as may be
necessary to provide the City
with the information needed
to make accurate determine
.,tion as to the financial condi
tion ofthe,sysfem. At) linen
'c(at statelr�ents she If be
'certified-ai.ccUrate
•fifcecof Grantee__:. -
g
E. For fat ure by the
Gran ee; t0`provide:.data4
decument's, resorts,- ler
Illation as'required by, Sec-
tions 9,12, 14, 11,.21 end23
Ihe;.CL{y,May withdraw Jro
the SecuritrFund.Fift (.Ool
lars (550.00) per day for each
day, or part thereof, the vio-
lation occurs or continues.
F. For failure by the
Grantee to comply with qual-
ty of service or operational
or technical standards fol.
lowing the City's written no-
tice directing Grantee to
make Improvements pur-
suant to Section 12(1), City
may withdraw from the Se-
curity Fund Two Hundred
Dollars (5200 00) per day for
viola day, or part s thereof, the
G. For. failure by the
Grantee to comply with the
City's written notice direct-
ing the Grantee to provide in-
stallation of outlets and ser-
vice to schools, colleges, and
junior colleges pursuant to
Section 21, V(D), City may
withdraw from the Security
Fund Two Hundred Dollars
(0200,00) per day for each
day, or pat thereof, that the
violation continues.
H. For failure by the
Grantee to test, analyze, and
report on the performance
on the system following a re-
quest by the City pursuant to
Sections 11, 12 and 28, City
may withdraw from the Se-
curity Fund Two Hundred
Dollars (5200,00) per day for
each day. or part thereof,
that such noncompliance
continues,
I. For failure by the Grant
ee (0 activate the two-day ca
pability pursuant to Sectio
22, VII, Clty may withdra
from the Security Fund On
Hundred Dollars (5100.00
per day for each day, or par
thereof, Ihaf such service 1
not provided.
J. For failure by the Grant
ee to provide continuity o
service as required in Se
tion 17, the City may with]
draw from the Security Funs
Two Hundred 00(1001
5200.00) per day for each
day, or part thereof, tha
such service is not provided.
SECTION 26. FORFEIT•
URE OF FRANCHISE. 1
A. In addition to all other
rights and powers pertaining
to the City by virtue of this
franchise or otherwise, the
City reserves the right toter
urinate this franchise and all
rights and privileges of the
Grantee hereunder in the
event that the Grantee:
(1) Violates any provision
of this franchise or any rule,
order or determination of the
City, or City Council made
pursuant to this franchise;
(2) Becomes insolvent un-
able or unwilling to pay its
debt, or is adjudged bank-
rupt;
(3) Attempts to dispose of
any of the facilities or prop-
erty of its CATV business to
prevent the City from pur-
chasing same, as provided
for herein; •
(4) Attempts to evade any
of the provisions of this fran-
chise or practices any fraud
or deceit upon the City.
B. The City Manager shall
be reponsible to see that all
terms and conditions of this
franchise are bet and per-
formed In the event of any
of the above mentioned vio-
lations, the City Manager
shall take such action asmec-
�Ia
essar tand•prbper r enforce
CIon s r tir:arbpe Iran fore, r
,Prior to-aey forfeiture
ageinst,the, -Grantee,^'CH
shall -give Grantee-.aP•feasf
_ ihtrty_ ( )_days advance
written notice ofwe pro-
posed forfedure,.which-writ
tan'notice.of proposed for
feature Shall ,state, Uearl
lavhenein the; Grantee ha
!failed to comply with the pro
visions, of,fhe.franch,se-th
- _ recommended cure, the time
to cure, the persons in auk
thonty to whom responses
should be addressed, and
such other procedures
may be specified by the City
deficiencies within the tam
If Grantee falls to cure sue
prescribed in the notice o
proposed forfeiture, the Cit
Council may revoke the Fran
chase by forefeifure at a pub
lie hearing held for such pur
pose after the City has give
Grantee at least ten (10)
daysfb
advance hearingtt
oGrantee
hall have the right to part,c-
Ipate as a party to such hear -
Ing.
SECTION 27. PURCHASE
.OF SYSTEM BY CITY.
A Rights to Purchase,
In the event the Grantee
forfeits or City terminates'
this franchise pursuant to
or at rovisthes orof tmal exp ration
his ordinance
of the franchise term, Cit
shall have the right to put
chase the CATV system in
accordance with the follow-
ing provisions and the provi-
sions of Article VIII, Section
5(k) of the City Charter
which is attached hereto and
incorporate T^eerein es Ex
hiebit D", prvvetlure
t forth herein are available
for any of the purposes se
forth above and may be tom
menced at any time whefhe
or not they are corfimehced
within the last two (2) years
of the term of this franchise.
B. Franchise Valuation.
For purposes of this sec-
tion onlyi, the fair value of the
franchise shall be the. re--
placement
e-placement value of tangible
assets of the franchised
CATV system, "Re-
placement value" is defined
as the cost of building a new
and equally sized systemncreaottssnaoaad current lenl-
'
lowance for the age and con-
dition of the present system,
except no value shall be as-
signed to either the franchise
itself or any right, privilege
or expectancy arising to
Grantee out of the nght to
transact business under the
franchise, and particularly
no value shall be allowed for
any increase in value arising
out of any expectation of
CATV system revenues be-
yond the forfeiture and ter-
mination date or expiration
date, whichever is sooner.
C. Date of Valuation.
The date of valuation shall
be no earlier than the day fol-
lowing the date of expiration
or termination and no later
than the date City makes a
fair and reasonable offer for
the system or the date of
transfer of pwnership,
whichever occurs first.
D. Transfer 10 City.
Upon exercise of this op-
tion and the payment of the
above sum by the Clty and its
service of official notice of
such action upon Grantee,
the Grantee shall immedi-
ately transfer to the City pos-
session and title to all facil-
ities and property, real and
personal, of the CATV sys-
tem, free from any and all
liens and encumbrances not
greed -to be assumed kith
9City3n lieu Of sgm,porfl not
s the gpfphas0-pri .set.forth
eebova ntl the Granteeshaq
exacufe�uch}val' dgti(deeds
Lr;olher•tnsirumenfs of 00n -
places as contained in the no-
tice or as thereafter publicly
stated_in_the order to ad-
journ; a cept'as'-otherwise
authorized by the City Atter-
nayo
5 .gs.and, wiosethin
'forty-tov-
(45p)- ays,- fteria -pointment
_
(45) daysafter appointment
of the third arbitrator, the
board shall prepare findings
and decision agreed upon by
a malorify of the board
which shall be filed with the
City and served by mail upon
the Grantee. In the event the
board, or a majority thereof,
fails to make a decision with-
in such time period, the pro-
ceedings•of this board Shall
become null and void and a
new board of arbitrators
shall be chosen in like rnan-
ner the arbitration pro-
ceduressof f In this sub-
section F begin anew.
(el The decision of the
Board shall be final and
binding upon the City and
Grantee.
(f) Either City or Grantee
may seek judicial relief in
the folliwng circumstances:
(i) the City falls to select
an arbitrator;
()U the arbitrators fail to
select a third arbitrator, un-
less a third arbitrator is se-
lected in the manner set
forth in Article VIII, Section
5(10(3) of the City Charter;
(10) one or more arbitrator
is unqualified;
(Iv) designated time limits
have been exceeded;
(v) the board has not pro-
ceeded expeditiously; and
(VI) based upon the record
the board abused its dis-
cretion.
competent
(al In the event)urlsdicna courton of
termines the board has abus-
ed its discretion, it may or-
delthe ar-bttrati do
procedure repeated and Is-
sue findings, orders and di-
rections, with costs of suit to
be awarded to the prevailing
party.
(h) Cost of arbitration
shall be borne equally by fh
City and the Grantee.
(3) Upon determination o
the fair value either b
agreement or by the board o
arbitrators, the City Counci
shall, within a period of six1
(60) days thereafter, deter
mine whether or not to sub
mit to the qualified voters 0
the City the proposition 0
whether or not the City
should acquire the subject
assets of Grantee. Such elec-
tion and the authorization for
-issuance and sale of any
bonds necessary to purchase
said assets shall be accom-
plished in .the manner set
forth in Article VIII, Sections
5(k)(4) and 5(k)(5) of the
City Charter (see attached
Exhibit "D").
SECTION 28, PERFORM-
ANCE EVALUATION SES-
SIONS.
A. The City and the Grant-
ee shall hold scheduled per-
t*mance evaluation ses-
sions within thirty (30) days
of the third, sixth, ninth and
twelfth anniversary dates of
the Grantee's award of the
franchise. All such eval-
uation sessions shall be open
to the public,
B. Special evaluation ses-
sions may be held at any
time during the term of the
franchise at the request of
the City Charter or the
Grantee.
C AILevaluation-session
I(pe opera (q- toe pebli
Sand -r oft geped•yn a news
{)aper r, geperPlth,legaho
411 9Gcor49ece wslh4ggal no
►61ce„Grantee,shal l -ndhf y -d
kbubcribers of all evaluatto
yeyance.to.City-asa .I be.
necessary foor�lhiaipurpose,,,
The Grantgs air-grake it a,
condition of each, contract
with extends. beyond the,pe
riod at•sptuch the City has the
option to acquire the system
and entered into by it with
reference to its operation un-
der this franchise that the
contract shall be sublet} to
the exercise of this option by
the City and that the Cify
shall have the right to sue•
reed to all privileges and ob-
ligations thereof upon the ex-
ercise of such option.
E. Procedure for Pur-
chase.
Whenever the City Council
orders that notice be given to
Grantee that the City desires
to purchase the CATV sys-
tem, the City Secretary Shall
rause such to Grantee Inowriting ce to begiven
sixty (60) days from the date
Grantee receives such writ-
ten notice, Grantee shall sub-
mit to the City Manager a
complete detailed inventory
of Grantee's tangible assets
for the franchised CATV sys-
tem, detailed maps clearly
Indicating the location of
such assets, and Grantee's
best estimate of the fair val-
ue of such assets. The City
and Grantee shall have a pe-
riod of sixty (60) days after
the City's receipt of the afo-
resaid Grantee's inventory,
maps, and best estimate of
value in which to agree upon
the value.
F rbitration of Value and
Costs.
(1) In the event City and
Grantee cannot agree upon
the aforesaid value of the
CATV system, the value
shall be determined by a
board of arbitrators compos-
ed of three members as set
forth below
(2) Arbitration shall com-
mence and proceed accord-
ing to law as follows.
I (a) Within fifteen (15)
days following the sixty (60)
day period described in sub-
section E above, the Cityand
Grantee shall each appoint
one arbitrator both of whom
are experienced and knowl-
edgeable In the valuation of
cable television property
These two arbitrators shall
agree upon selection of, and
shall appoint, within fifteen
(15) days, the third arbi-
trator who is similarly quali-
fied and who is a Texas reg-
istered professional
engineer. If Grantee either
I falls to furnish to the City the
inventory and maps required
within the time period pre-
scribed in subsection E
above, or fads to appoint its
arbitrator within the fifteen
(15) day period described
above, the Cdy Council may
appoint the arbitrator for
Grantee. 11 the two arbi-
trators fait to agree upon and
appoint the third arbitrator
within the specified time pe-
riod, the third arbitrator
may be selected in the man-
ner described in Article VIII,
Section 5(k)(3) of the City
Charter (see Exhibit "0” at-
tached hereto).
(b) Within twenty (20)
days after appointment of
the third arbitrator and upon
(five (5) days advance writ-
ten notice to the City and
Grantee, the board of arbi-
trators shall commence a
hearing on the issue of valu-
ation.
I (c),Tha,•hearmg-shall-be
recorded and transcribed at
the request of either,SUy or
Grantee , All hecrinp xpro
ceedmgs. debate and defib
erations,shall,be•open-to the
public and at such times and
sessions y announcemen
pn at least two (2) channel
f its system between fh
ours of4;pg.p.m-.and-9.:
Eim„ for flue (5) consecutly
• 0,5 precedi Topi snWhctihmaYOn
iscussed at any schedule
nspeclal evaluation sessi
saynclude, but not be Iimj
ted to, service rate struck
ures; franchise fee, penal
les, free or discounted
ervices; application of genii
echnolo9ies, system peri
ormance, services pro,
rided, programmiang affer-
d; customer complaints;'
rivacy, amendments to this
rdinance, judicial and FCCI
rulings, line extension poli l
ies; and Grantee or City
ules.
E. At the performance
evaluation session scheduled
or the third anniversary
date of the Grantee's award
of the franchise, Grantee
shall provide at its cost a
business analysis of the fea-
sibility of activating two-way
capability over the system.
F. Members of the genera
public may add topics eithe
by working through Grantee
or City or by presenting a pe-
tition. If such a petition
bears the valid signatures of
fifty (50) or more residents
(of Corpus Christi, the pro-
poseditopic or topics shall be
added to the list of topics to
be discussed at the eval-
Gation session.
k SECTION 29, NEW DE
VELOPMENTS.
bThe Grantee shall Strive to
pgrade its facilities, 05050-
ment and service so that its
system Is as advanced as the
current state of technology
will allow. The Grantee shall,
inane every avauable effort
to install additional channel
capacity as required to keep
channescapacity In excess of
the reasonable demand
thereof by users.
SECTION 30 AREAWIDE
INTERCONNECTION OF
CATV SYSTEMS.
The Grantee shall endeav-
or to interconnect access
channels of the cable system
with any or all other CATV
systems in adjacent areas,
upon the directive of the
City Interconnection of sys-
tems may be done by direct
cable connection, micro-
wave link, satellite, or other
appropriate method. Upon
receiving the directive of the
City to interconnect, the
Grantee shall immediately
initiate negotiations with the
other affected system or sys-
tems fn order that all costs
may be shared equally
among cable companies for
both construction and oper-
ation of the interconnection
link. The Grantee may be
granted reasonable exten-
sions of time to interconnect
or the City may rescind its
order to interconnect upon
petition by the franchisee to
the City. The City shall grant
aid -request if it :finds that
Grantee has negotiated in
good faith and has filed 10 ob-(
fain an approval from the
system or systems of the pro-
posed interconnection, or
that the cost of the inter-
connection would cause an
unreasonable or -un
acceptable increase In sub-
scriber rates The Grantee
shall cooperate with any in
terconnect ion corporation
regional interconnection au
thorityor city„county, state
and federal •-regulatory
e
agency which,rnay, r
after estab(Ished•fdrJhe pu`r-
pose of financ-
noE:otheregulating,
dL providing
for the Interconnection of
s•s ems •etyork§ 1
boundaries of the Cityy. -
SECTION 31 FORCE•MA-
;tEURE-CLAUSE-
If Grantee hereunder is
rendered unable, by force
Majeure, 10 carry out the
terms of this franchise, other
than the obligation to make
money payments upon writ-
ten notice to the City of the
force maleure and together
with reasonable particulars
concerning it, the City Coun-
cil may suspend or partially
suspend the Grantee's obli•
gations under this franchise
during the continuance of the
force majeure, but not to ex-
ceed thirty (30) days or such
time specified
Sucht petheri
ity
cilod,
Grantee full
resources.ntol devote s
servicingand
restoring the system to full
'''Ea
CTION N•
EE'S PROPOSALS IN•
CORPORATED.
By its acceptance of the
ranchise, Grantee specifi-
cally grants and agrees that
is Proposal is incorporated
by reference and made a
part of this ordinance as Ex-
hibit "A". In the event of a
conflict between proposed
services listed in said Pro-
posal and the provisions of
this ordinance, that provi-
sion which provides the
0 greatesthespinion benefit nof the Cito the ty
prevail, Fail
a e to provide services a
promised in Grantee's Pro
posal as incorporated hereir
shall be deemed a breach o
this ordinance 10 which thi
provisions of Sections 25 an
26 of this ordinance shall ap
Ply. 1
SECTION 33. PARTIA
INVALIDITY AND REil
PEAL PROVISIONS. •
If any section, subsector
sentence, clause, phrase, of
portion of this ordinance 1'
for any reason held invali
or unconstitutional in an
court of competent iuris
diction, such portion shall be
deemed a separate, distinct
and Independent provislo
andsuch holding shall notal
feet the validity of the re
maining portions hereof.
SECTION 34. PUBLICA
TION. I ne City secretary i
hereby dlrected to publish a
Grantee's expense the ful
text of this ordinance on
Ime In some newspaper a
general circulation in the
City within fibe (5) days foil
lowing each reading of this
ordinance, as required btl
City Charter_ Article VIII
Section 3(a).
AGREED TO
AND ACCEPTED:
ATHENA CABLEVISION
OF CORPUS CHRISTI
INC
(Title) R
ATTEST
Secretary
'ATHENACOMMU3
NICATIONS
CORPORATION
(Title)
•• ATTEST:
",r'r
Secretar
•
STATE OF TEXAS, lss:
County of Nueces. 1
PUBLISHER'S AFFIDAVIT - v. 2]!4673._
CITY ;OF C.C.
Before me, the undersigned, a Notary Public, this day personally came
EIZLIE...1«..H.E E1�3L'I� , who being first duly sworn, according to law, says that he is the
.A.CAO.UNMI "..CLERK"
of the Corpus Christi Caller and The Corpus Christi Times,
Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of
of which the annexed is a true copy, was published inTQEF.a..QQ33.P..U.....r..F1F31S..1...cliLL1114.IMES -.---.
on the._l.6thday of 14AR011 19... J., and once each du thereafter for_ Ji?
consecutive. - " day
ntae._....... _...Times. -
g___.33.62.._......._.. Naas$ Ekso N�1
Subscribed and sworn to before me this..... _8th day of APRIL 19 81
LOIS WIN N7�
t' Pith ' Nueces County Texas
N
o ary c,
'y fli ' NOTICE OF PASSAG r�'
OF ORDINAN
ON FIRST R ING
GRANTING A F ''
• f •
- • CHISE TO ATHENA CA-
BLEVISION OF; CORP!!5'
CHRISTI, INC., TO OPER.
ATE AND MAINTAIN A-
COMMUNITY ANTENNA
TELEVISION SYSTEM INj'
THE CITY FOR A TERM
NOT TO EXCEED FL✓''_
TEEN (15) YEARS; SSEET• 1'+.
TING FORTJ•I.CONDITIONS""
•ACCOMPAIsY I NG TT-HHSET���'
GRANT OF •.F RANCHlS
PROVIDING FOR C TY
.r
REGULATION' AND 5
OF THE COMMUNIT •
TENNA TELEVISION 5 t.
TEM, PRESCRIBING PEN• -.
ALTIES FQR VIOLATION,:
OF THE FRANCHISE PRO•
VISIONS; AND PROVUO<' -
!NG FOR PUBLICATION.
Notice is hereby given
the City Council of the0(fyof
Carpus Christi has, on
11th day of March, 1981, ans.',
proved on first reading tbe'
aforementioned ordinaA"ce.,
The full text o: said 9cdl'
napce is ava(ta ble to the pub.
Iic in the Office of the coy!
Secretary. ���
WITNESS ABY HAND-tM( ."i
the 12th day of March, .1981..
•s•BilI G. Rejig'
City Secretary
City of Corpus
Christi, Te,
vvorrv
OF ORDINANCE", ,
ON PIRST-READING`' «.
GRANTING A FRAN•T*
CHISE TO .4THENA CA•
BL'EVISI N ,yr CORPUS,
2HRMAINTAIN 1TEI A DD OTAIN A
pOMMUNITY ANTENNA`
SYSTEM
r'HEECITYON FOR A TERIM
NOT TO EXCEED FIF'
IirEEN (15) YEARS; SET- v
TING FORTH CONDITIONS
NG TE
RANT OFNyl FRA CHISE.ROVING.
•
REGULATIONfyFAND ROUSE ,,
OF THE COMMUNITY AN• ,
XENNSTEM; PH SCRIBIING ONPEN-
ALTIES FOR VIOLATION•"'
OF THE FRANCHISE PRO..
VISIONS; AND PROWD•'_
I
NG FOR PUBLICATION. • . y
he City Council of he City oven f ,.1
`orpus Christi has, on the"
1th day of March, 1981, ap•.^,
1) roved on first reading the .7,1'
forementioned ordinance.,, d
'he full text of said ordi•.'
ante is available to the pub.'s"
c in the Office of the City,;
ecretary.
WITNESS MY HAND this ;• ;
e 12th day of March, (981.
•s•Bdl G. Read, •.
City Secretary
Wa.axny ,p. Qty of Corpus
L ..�. �thrlsti,`Tlxas•w!;ss.,,
Y
PUBLISHER'S AFFIDAVIT V. 223211 = i�
CITY of C.C.
STATE OF TEXAS, lss:
County of Nueces. J
Before me, the undersigned, a Notary Public, this day personally came. .......
BILLIE 7. HENDERSON , who being first duly sworn, according to law, says that he is the
ACC411N3 7DIG.13 E&I� of the Corpus Christi Caller and The Corpus Christi Times,
Daily Newspapers published at Corpus Christi, Texas,, in said County and State, and that the publication of
NOTICE OF PASSAGE OF......
of which the annexed is a true copy, was published in TEE CORPUS CHRISTI_CALT,FR-TIMES
on the. 23rd day of.... MARCH 19.8._., and once each. day ._ .__._.....thereafter
consecutive day
Times.
36..9Q__. _ ..BILILZ+....J . ...IIMLDRRSON...
�� �� ACCOUNTING CLERK
. , Subscribed and sworn to before me this 8th day of APRIL 19.BL..
LOIS WINN 0� 64
Notary ublic, Nueces County, Texas
1
NOTICE OF
PASSAGE O
ORDINANCE -ON
- SECOND READI
GRANTING A F AN-
CHISE TO ATHENA C
BLEVISION OF CORPUS
CHRISTI, INC., TO OPE
ATE AND MAINTAIN A
COMMUNITY ANTEN
TELEVISION SYSTEM IN
THE CITY FOR A TER
NOT TO EXCEED FI -
TEEN (15) YEARS; S
TING FORTH CONDITIONS
ACCOMPANYING T
GRANT OF FRANCHISE;
PROVIDING FOR CI
REGULATION AND USE
OF THE COMMUNITY
TENNA TELEVISION SYS-
TEM; PRESCRIBING PE
ALTIES FOR VIOLATION
OF THE FRANCHISE PRE).
VISIONS; AND PROVID-
ING FOR PUBLICATIQN!
Notice is hereby given that
the City Council of the Cit
Corpus Christi has, on the
18th day of March, 1981, Apr
proved on second reading,
having previously been
proved on first reading on
the llth day of March, 1 •:
the aforementioned ordi-
nance.�hej(ulLtext of s.--
ordinance is available to the
public in the Office of 1
City Secretary.
WITNESS MY HAN• t
the 19th day of March, 1981.
-s•Bill G. R
City Secretary
City of Corgyr