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ORD NO 18-1978 t F R A N C H I S E O R D I N A N C E Number /1--797 Y AN ORDINANCE GRANTING TO VAN BUREN CATV SYSTEM, A NON- EXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN 0 A DISTRIBUTION SYSTEM FOR TELEVISION, RADIO, AND OTHER AUDIO- VISUAL SIGNALS THROUGHOUT THE CITY OF VAN BUREN, ARKANSAS, AND SETTING THE TERMS AND CONDITIONS OF THE FRANCHISE AND ESTABLISHING BONDING AND INSURANCE REQUIRE- MENTS OF THE FRANCHISE; DECLARING AN EMERGENCY. SECTION 1 The CITY of Van Buren, Arkansas, hereinafter referred to as the CITY, hereby grants to Van Buren CATV System, here- inafter called the GRANTEE, and to its successors and assigns, the non exclusive right and authority to install, maintain and operate a transmitting and distribution system for tele- vision, radio and other audio visual electrical signal dis- tribution in, over and on and under the streets, alleys and public highways of the CITY, and to erect poles, with or without cross arms, and to stretch wires and cables on, across and under all streets; to maintain and use the same for the purpose of construction and operating a transmit- ting and distribution system for television, radio and other audio- visual signal distribution. SECTION 2 All poles, cables, wires, antennas, conduits, or appurte- nances shall be constructed and erected in a workmanlike manner. The CITY shall not be held liable for any dis- turbance of GRANTEE'S installation resulting from the altering, repairing or installation of streets, sewer or water installations. GRANTEE shall, at its own expense move or relocate any of GRANTEE'S installations, at the request of the CITY, whenever or wherever GRANTEE'S in- stallations are found by the CITY to interfere with the -1- CITY'S streets, street grade, sewer or water installation, or any proposed changes thereof, or extensions thereto. This ordinance shall not be construed as to deprive the CITY of any rights or privileges which it now has, or may 0 hereafter have, to regulate the use and control of its streets. SECTION 3 All the construction of the GRANTEE,.including installa- tion, shall conform to the National Electric Safety Code, the statutes of the State of Arkansas and all ordinances of the CITY. GRANTEE shall provide the City Engineer with a map designating the location of CATV facilities; said map shall be available for public examination. SECTION 4 GRANTEE shall lay all cables, wires and lines both on the public and private properties of the CITY at its own ex- pense, but GRANTEE shall have the privilege of charging its customers both a connection fee to bring the service to their properties and a monthly fee for their continued use of the service. SECTION 5 Upon receipt of a Certificate of Compliance from the Federal Communications Commission, GRANTEE shall post with the CITY a bond to be approved as to form by the City Attorney in the sum of $5,000.00 conditioned upon the faithful performance of the conditions and terms of the permit and providing a recovery of the bond in case of failure to perform the terms and conditions thereof. 0 SECTION 6 The GRANTEE shall idemnify and save the CITY harmless from any and all liability, damage or expense from accident or damage, either to itself or to persons or property of others, -2- which may occur by reason of GRANTEE'S activities in the cable television business. For this purpose and prior to commencing construction of any kind, the GRANTEE shall have in full force and effect and thereafter so maintain the same at all times, and file evidence thereof with the 0 City Clerk, a good and sufficient policy of insurance with liability limits of Fifty Thousand Dollars ($50,000.00) for property damage, One Hundred Thousand Dollars ($100,000.00) for personal injury to each person, and Three Hundred Thou- sand Dollars ($300,000.00) for each accident. The said policy shall protect the CITY from and against any and all claims, actions, suits, liability, expense or damage of any kind or description which may accrue to or be suffered by the CITY or by anyone by reason of the construction, maintenance or operation of GRANTEE'S facilities. SECTION 7 CITY approval, in conjuction with public proceedings af- fording due process to all interested parties, is required before subscriber rate increases may be initiated. SECTION 8 GRANTEE shall pay the CITY five (5) percent of the gross subscribers monthly service revenues, after taxes, and excluding any installation charges received by GRANTEE for cable television service provided to subscribers within the corporate limits of the CITY as now or here- inafter constituted. All payments shall be made semi- annually on the first day of February and August and shall be accompanied by a statement of gross rentals derived by the GRANTEE from subscribers located within 0 the CITY, such statements to be certified by a licensed certified public accountant. The percentage of the gross revenues so paid shall be in lieu of all other fees or taxes including occupations, license, pole installation permits, excise and special franchise taxes or fees of -3- any nature whatever, with exception of municipal and valorem taxes on the GRANTEE'S property located within the limits of the CITY. The legislative body of the CITY shall have the right to inspect the records of the GRANTEE at any reasonable time for the purpose of ascertaining accurately what the actual 0 gross receipts of GRANTEE may have been for cable television service for past years and /or for the present year. SECTION 9 The CITY reserves the general right to see that the system of the GRANTEE is constructed and maintained in a safe condition. If the CITY at any time finds that an unsafe conditon does exist, it may order the GRANTEE to make necessary repairs forthwith, and if the GRANTEE shall fail to forthwith make the necessary repairs, the CITY may make them or have them made, and collect all cost and expense thereof from the GRANTEE. SECTION 10 This ordinance shall be null and void unless the GRANTEE shall within thirty days after its effective date file with the CITY CLERK of the CITY its written acceptance of all terms and conditons hereof. A Certificate of Compliance must be issued by the Federal Communications Commission before commencing any construc- tion. Construction will start within thirty (30) days of execution of pole rental agreements and completion of pole clearance work by the Utility Companies. We anticipate cable television service will be available to all residents within the Base Rate Areas of the CITY within six months of the start of construction. A defin- ition of the Base Rate Area is attached hereto as Appendix A. SECTION 11 GRANTEE shall provide a free cable installation to each primary and secondary school in the CITY, wherever plant passes. Churches will also be provided a free installation. -4- SECTION 12 GRANTEE agrees to provide a free cable television install- ation and free monthly service to each CITY office building, fire station and police station within the CITY. SECTION 13 (A) The rights and privileges of this permit shall continue for a period of Fifteen (15) years from the effective date of this ordinance. The GRANTEE is hereby given an option to renew this permit for an additional Five (5) years upon notice given to the CITY prior to the expiration of the initial Fifteen years. Upon the expiration of the optional renewal period, this permit may be renewed for additional terms of Fifteen Years upon approval by the CITY after a public hearing affording due process to all interested par- ties on the basis of an appropriate showing by the GRANTEE that he remains qualified to operate the system herein authorized and has provided satisfactory service in the past. (B) At the termination of this ordinance and any renewal periods granted pursuant to the terms of this section, or if the ordinance is forfeited or abandoned for any reason prior to the natural termination therefore, GRANTEE may sell or transfer such construction and installations as then exist to any person, subject to the approval of the CITY. GRANTEE may leave such construction and installa- tion in place for at least six months after the termina- tion forfeiture or abandonment of this authorization in order to seek a purchaser, and such additional time as the CITY may approve, except that the CITY may require the immediate removal of any construction or installa- 4 1 tion it deems to constitute a nuisance upon termination of the franchise. No purchaser or transferee of such construction or installation acgaires thereby any rights or authorization to operate a cable television system -5- in the CITY except as it may be separately granted to him. If after the period allowed to sell such construction and installations they have not been sold, the CITY thereafter may direct the GRANTEE to remove any and all such construc- tion and installation at its own expense from all public area, and direct that GRANTEE shall place all public areas that have been disturbed in as good a condition for public use as the abutting portions thereof. SECTION 14 If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or illegal, the invalidity or illegality thereof shall not affect the validity or legality of any other section, sentence, clause or phrase of this or- dinance. SECTION 15 Schedule of Rates The GRANTEE shall save the right to prescribe reasonable rules and regulations for the con- duct of its business not inconsistent with the provisions of this ordinance or the Federal Communications Commission. The following proposed rates to be charged subscribers for the providing of cable television service have been approv- ed by the CITY: Installation (1st TV Set) $10.00 Installation (2nd TV Set) 5.00 Installation (FM Set) 5.00 Relocation of TV Outlet 5.00 Reconnect after Moving 5.00 Monthly Service (1st TV Set) 6.50 Monthly Service (2nd TV Set) 2.00 Monthly Service (FM Set) 1.00 SECTION 16 The GRANTEE shall maintain an office for the purpose of receiving subscriber complaints regarding the quality of service, equipment malfunction, billing disputes and any other matters. GRANTEE shall investigate and resolve such complaints expeditiously and normally within twenty four (24) hours. SECTION 17 No transfer of control over the franchise or the GRANTEE herein may be consummated except upon approval by the CITY. SECTION 18 GRANTEE shall conform to all laws and regulations of the United States and the State of Arkansas in the construc- tion and operation of its cable television system, and all rules and regulations of the Federal Communications Com- mission cable television franchises, as now enacted or subsequently amended are incorporated herein by reference. This ordinance is in full compliance with the rules and regulations of the Federal Communications Commission re- lating to cable television franchises as now exacted. SECTION 19 GRANTEE shall designate at least one channel for use by local governments, one channel for use by local educa- tional authorities and one channel for use by members of the public and such additional channels for local program origination as are required by any applicable federal or State laws, rules and regulations. SECTION 20 It is hereby ascertained and declared that there is im- mediate need in order to protect the health and property of the inhabitants of the CITY, therefore, an emergency exists, this ordinance is immediately necessary for the preservation of the public peace, health and safety,. and shall take effect and be in force without delay from and after its passage. -7- Be it hereby amended that all channels Premised by the Company (CATV) will be available on the system and that good receution will be guaranteed. PASSED,ANB APPROVE": e 6 /9•7,1, (SEAL) A PPROVEmI MAYOR ATTEST: CITY CLERK -8-