84-082 ORD ARTICLE IV (ARENA CABLEVISION CORPORATION)
ARTICLE IV. (ARENA CABLEVISION CORPORATION)
ORDINANCE N0. $4-082
AN ORDINANCE GRANTING TO ARENA CABLEVISION CORPORATION
A FRANCHISE TO USE THE PUBLIC STREETS AND ALLEYS OF THE CITY
OF PARIS, TEXAS, FOR THE PURPOSE OF RECEIVING, AMPLIFYING
AND DISTRIBUTING TELEVISION SIGNALS, AND PROVIDING FOR THE
REGULATION OF THE BUSINESS AND PROVIDING FOR PAYMENT FOR THE
USE OF THE STREETS, ESTABLISHING AN EFFECTIVE DATE AND
CONTAINING OTHER MATERIAI. PROVISIONS AS SET FORTH BELOW.
BE IT CRDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS:
Section 1. Title.
This ordinan.ce shall be known and may be cited as Cable
Television Ordin.ance.
Section 2. Preamble.
This ordinance was passed after a full, open, and
public hearing upon prior notice and opportunity of all
interested persons to be heard and upon careful consid-
eration of grantee's qualifications, including its legal,
character, financial and technical qualifications.
Section 3. Definitions.
For the purpose of this ordinance, and when not incon-
sistent with the context, terrns, phrases, words and their
derivations used herein in the present tense include the
future; words in plural include the singular, and vice
versa. The word "shall" is always manda.tory. The captions
supplied herein for each section are for convenience only.
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that serves or will serve only subscribers in one or more
multiple unit dwellings under common ownership, control, or
management, and does not use City right-of-way.
Section 4. Grant of Non Exclusive Authority.
There is hereby granted by the city to grantee the
right privilege and franchise to operate a cable television
system and to construct, erect, operate and maintain in,
upon, along, across, above, over or under the present and
future streets, alleys, publi.c utility easements, public
ways and public places now la.id out or dedicated and all
extensions thereof and additions thereto in the city, all
poles, wires, cables, underground conduits, manholes and
othPr conductors and fixtur_es necessary for the maintenance
and operation in the city of a cable television. s_ystem for
the transmission of television signals and all other signals
permitted. by the FCC, either separately or upon or in
conjunction with any public utility rnaintair.ing the same in
the city with all of the necessary and desirable appliances
and appurtenances pertaining thereto. Without limiting the
generality of the foregoing, this franchise and grant shall
and does hereby include the right in, over, and upon the
streets, sidewalks, alleys, public utility easements and
public grounds and places in the city ta install, erect,
operate or in any way acquire the use of, as by leasing or
licensing, all lines and equipmPnt necessary to a cable
television system and the right to make connections to
subscribers and the right to repair, replace, enlarge and
extend said lines, equipment and connections. The rights
herein granted for the purposes herein set forth shall not
be exclusive, and the city reserves the right to grant a
similar use of said strPets, alleys, public utility ease-
ments, public ways and places to any person at any time
during the period of the franchise.
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Section 5. Franchise of Territory.
This franchise is for the present territorial limits of
the City of Paris and for any area henceforth added thereto
during the term of this franchise. Cable service shall be
made available to the franchise areas that can be extended
from the present existing grantee's system shown on Exhibit
A attached hereto or to any portions of the franchise area
that grantee deems serviceable.
Sectian 6. Procurement of Licenses.
The grantee, promptly following the effective date
hereof, shall make any necessary application to the Federal
Communications Commission for authority with respect to the
distribution system, including author_ity with respect to the
operation of any necessary FCC licensed services and shall
proceed with all due diligence to acquire all other neces-
sary government licenses and authorizations for the main-
taining and rebuilding of the present system and for the
construction necessary to serve the area within the City not
now served in accordance with the schedule required ir_
hereof and to serve new area upon future annexation. All
rules and regulations of the Federal Communications Commis-
sion pertaining to cable television service and the cable
industry standards are he.reby incorporated into and made a
part of this ordinance as though included herein word for
word as performance standards for the continuance of this
franchise. The grantee shall also make prompt application
to the city, the telephone company, and the power company
for pole attachment agreements and facility sharing agree-
ments for the erection, maintenance, extension, operation,
and removal of the distribution system.
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Section 7. Police Power.
Grantee shall at all times during the term of this
franchise be subject ta all lawful exercise of the police
power of the city. The right is hereby reserved to the city
to adopt, in addition to the provisions herein contained
and any other existing applicable ordinances, such addi-
tional applicable ordinances as it shall find necessary in
the exercise of its police power; provided, however, that
such additional ordinances shall be reasonable, shall not
conflict with or alter in any manner the rights gra.nted
herein, and shall not conflict with the la.ws of the State of
Texas, the laws of the United States of America or the rules
and regulations of the FCC.
Section 8. Indemnification.
Grantee shall indemnify, save and hold harr.iless the
city from all loss sustained by the city on account of any
suit, judgment, execution, claim or demand whatsoever
against the city resulting from occasioned by, or arising
out of grantee or its agents construction, operation or
maintenance of its cable television system in the city; and
for this purpose procure and keep in fu11 force and ef_fect
policy or policies of public liability insurance with a
responsible insurance company or companies qualified to do
business in the State of Texas ar_d approved by the City
Attorney naming the city as additional insured, covering
public liability and property damage in the minimum amounts
of Five Million Dollars ($5,000,000.00), for personal
injury, and One Million Dollars ($1,000,000.00), far pro-
perty damage; and said grantee shall at any and all times
during the effective term of this franchise and during any
operations under the samP furnish and provide to the city
clerk of the City of Paris satisfactory evidence that such
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policy or policies of public liability insurance are in full
force and effect, insuring said grantee against any and all
claims for damages in the nature of public liability,
personal, or property damage arising from its construction,
maintenance and operation of its cable television system
under this franchise.
Section 9. Construction and Maintenance.
(a) All structures, lines and equipment erected by
grantee within the city shall be so located as to cause
minimum interference with the proper use of street, alleys,
public utility easements and other public ways and places to
cause minimum interference with the rights a.nd reasonable
convenience of property owners, and grantee shall comply
with all reasonable requests of property owners, and grantee
shall comply with all rFasonable, proper and lawful ordi-
nances of the city now or hereafter in force. Existing
poles, posts, conduits, and other such structures of a_ny
electric power system, telephone company, or other public
utility located in the city shall be made available to
grantee for leasing or l:icensing upon reasonable terms and
rates and shall be used to the extent practicable in order
to minimize interference with travel and to avoid unneces-
sary duplication of faci]_ities. To the extent that poles,
posts, conduits, and other such structures are not avail-
able, or are not available under reasonable limitation upon
the use of grantee's cable television system, grantee shall
have the right to purchase, lease or in any other manner
acquire land, right-of-wav, or public utility easements upon
which to erect and maintain its own poles, conduits, and
other such structures as may be necessary for the con-
struction and maintenance of its cable television system.
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(b) In case of any disturbance by grantee of pavement,
sidewalk, driveway or other surfacing, grantee shall, at its
own cost and expense and in a manner, approved by the city,
replace and restore all paving, sidewalk, driveway or
surface so disturbed to a as good condition as before work
was commenced.
(c) In the event that at any time during the period of
this franchise the city shall lawfully elect to alter or
change any street, alley, public utility easement, or other
public way requiring the relocation of grantee's facilities,
then in such event grantee, upon reasonable notice by the
city, shall remove, relay and relocate the same at its own
expense.
(d) Grantee shall, on the request of any person
holding a building moving permit issued by the city tempo-
rarily raise or lower its lines to permit the moving of the
building. The expense of such temporary removal shall be
paid by the person requesting the same, and grantee shall
have the authority to require such payment in advance.
(e) Grantee shall have the authority to trim trees
upon and over-hanging all streets, alleys, public utili.ty
easements, sidewalks and public place of the city so as to
prevent the branches of such trees from coming into contact
with grantee's facilities.
(f) All poles, lines, structures and other facilities
of grantee in, on, over, and ur_der the streets, sidewalks,
alleys, public utility easements, and public grounds or
places of the city shall be kept by grantee at all times in
a safe and substantial condition.
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(g) Grantee will, upon request, furnish connections to
the nearest property line of all public schools within the
limits of the city, to the city library, and to the city
hall, and within ninety (90) days of receipt of such request
shall provide one, basic community antenna television
service without any monthly service charge; provided,
however, that all wiring within any building conterriplated
within this section sha11 be done (or contracted for to
grantee's specifications in accordance with FCC regulations)
by the municipality or school district which owns the
building and subject to the line extention policy herein
adopted.
(h) All construction shall be in strict compliance
with the City of Paris building and electrical codes.
(i) City shall have the use of poles and line on a non
interfering bases without charge.
Section 10. Applicable Rules and Laws.
This franchise is governed by and subject to all
applicable rules, regulations and policies of the Federal
Communication Commission, specificall_y inclu.ding Part 76 of
the FCC Cable Rules and by laws of the State of Texas.
Should there be any modifications of the provision of Part
76 of the rules and regulations of the Federal Communica-
tions Commission, specifically including Section 76.31, that
are inconsistent with this franchise, the city and grantee
agree that this franchise will be appropriately amended
within one (1) year after the effective date of the FCC's
adoption of the modifications.
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Section 11. Franchise Term.
This franchise shall take effect and be in full force
and effect from the date calculated in accordance with
Section 22 hereof, and the same shall continue in fu11 force
and effect for a term of Twenty-five (25) years from that
date.
Section 12. Loca.l Office and Complaint Procedure.
The grantee shall maintain a business office in Lamar
County for receiving non-toll telephone ca11s, inquiries or
complaints regarding quality of service, equipment, mal-
functions, billing disputes and similar matters. Inquires
or complaints shall be received during normal business hours
(8:00 A.M. to 5:00 P.M.), Monday through Friday and. except-
ing holidays proclaimed by national, state and local govern-
mental authority. Complaints for other than regular working
hours may be made to a separate telephone maintained for
that purpose which shall be listed in the telephone
directory, or the same telephone number may be used, at the
option of the grantee. Al1 complaints and inquires will be
investigated and responded to or acted upon as promptly as
practical, ar_d unless prevented by circumstances beyond
grantee's control, within one (1) business day after receipt
of the same. Should service be discontinued for seven (7)
consecutive calendar days during any billing period then
billing for such period shall be prorated to reflect the
period without service.
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Section 13. Review Procedure.
(a) Signal Quality Req_uirements and Review.
The grantee shall:
(1) Produce a picture, whether in black and white or
in color, that is undistorted, free from ghost images,
substantially noise free and accompanied with proper sound
on typi_ca.l standard production TV sets in good repair, and
as good as the state of the art allows;
(2) Transmit signals of adequate strength to produce
good pictures with good sound at all outlets without causing
crossmodulation in the cables or interfering with other
electrical or electronic systems;
(3) Lir.iit failures to a minimum by locating and
correcting malfunctions promptly, but in no event longer
than 24 hours after noticP;
(4) Demonstrate by instruments and otherwise to
subscribers that a signal of adequate strength and quality
is being delivered.
Evaluation sessions may be held at any time during the
term of this Franchise at the request of the City or the
Grantee.
All evaluation sessions shall be open to the public and
announced in a newspaper of general circulation in accor-
dance with legal notice. Grantee shall notify its
subscribers of all evaluation sessions by announcement on
its system between the hours of 7:00 p.m, and 9:00 p.m, for
five (5) consecutive days preceding each session.
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Topics which may be discussed at any scheduled or
special evaluation session amy include, but not be limited
to, service rate structur.es, franchise fee, penalties, free
or discounted services, application of new technologies,
system performances, service provided, programming offered,
customer complaints, privacy, amendments to this ordinance,
judicial and FCC rulings, line extension policies, and
grantee or City rules.
Members of the general public May add topics either by
working through the negotiating parties or by presenting a
petition. If such a petition bears the valid signatures of
tifty (50) or more residents of the City, the proposed topic
or topics shall be added to the list of topics to be dis-
cussed at the evaluation session.
(b) Operation and Maintenance of System and Review.
(1) The grantee shall render efficient service, make
repairs promptly, and interrupt service only for good cause
and for the shortest time possible. Such interruptions
14_nsofar possible shall be preceded by notice and shall occur
during the periods of minimum use of the system. Repeated
outages will not be tolerated. System outages in excess of
four per Month shall be deemed inconsistent with efficient
service. Similarly, repeated system failures at the same
location(s) would indicate inadequate equipment maintenance
and/or need for equipment replacement.
(2) When there has been a pattern of similar com-
plaints made or when there exists other evidence, which, in
the judgment of the City Council casts doubt on the re-
liability or quality of cable service, the City Council
shall have the right and autharity to compel the grantee to
test, analyze, and report on the performance of the system.
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Such report shall be delivered to the City Council no later
than Sixty (60) days after the City Council formally
notified the grantee ar_d shall include the following infor-
mation: the nature of the complaints which precipitated the
special tests, what system component was tested, the equip-
ment used, and procedures employed in said testings; the
results of such tests, and the method in which said com-
plaints were resolved.
The City may requi_re that said tests and analyses shall
be supervised at gra.ntee's expense by a professional engi-
neer not on the permanent staff of the grantee. The afore-
said engineer should Gign all records of the special tests
an.d forward to the City Council such records with a report
interpreting the results of the tests and recommending
actions to be taken by the City.
Section 14. Forfeiture.
In addition to all other rights and powers pertaining
to the city by virtue of this authority or otherwise, the
city reserves the right to terminate and car_cel this author-
ity and all rights, and privileges of the grantee hereunder
in the event that the grantee violates any material
provision of this authority or a.ny rule, order, or determin-
ation of the City Council made pursuant to this authority,
except where such violation, other than of provisions
concerning transfer of authority without prior city
a.pproval, is without fault or through excusable neglect and
after grantee has received notice of such violation for 30
days and failed to have instituted appropriate action to
cure such violation and diligently prosecuted such cure.
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Section 15. Sur_render Right.
Grantee May surrender this franchise at any time upon
filing with the City Cler.k of the City a written notice of
its intention to do so a.t least six (6) months before the
surrerLder date. On the surrender date specified in the
notice, all of the rights and privileges and all of the
obligations, duties and liabilities of grantee in connection.
with this franchise shall terr.linate.
Section 16. Transactions Affecting Ownership of
Grantee.
(a) This Franchise shall not be assigned, transferred,
either in whole or in pa.rt, leased, or sublet, in any
manner, nor shall title thereto, either legal or equitable
or any right, interest or property therein, pass to or vest
in any person not controlled by grantee without the prior
written consent of the City Council which shall not be
unreasonably withheld. Notwithstanding the aforementioned,
grantee is expressly given the right to assign or mortgage
its interest hereunder for security purposes only to obtain
funds necessary for the purchase, improvement or operation
of its cable television system herein authorized.
(b) The gra.ntee shall promptly notify that City of any
actual or proposed change in, or transfer of, or acquisition
by any other party of, control of the grantee. The word
"control" as used herein is not limited to major stock-
holders but includes actual working control in whatever
manner exercised. Every change, transfer, or acquisition of
control of the Grantee shall make the Franchise subject to
cancellation unless and until the City shall have consented
thereto, which consent will not be unreasonable withheld.
For the purpose of determining whether it shall consent to
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such change, transfer, or acquisition of control, the City
may inquire into the qualifications of the prospective
controlling party, and the grantee shall assist the City in
any such inquiry.
(c) The consent or approval of the City Council to any
transfer of the Franchise shall not constitute a waiver or
release of the rights of' the City in and to the streets,
and transfer shall by its terms be expressly subordinate to
thP terms and conditions of this Franchise.
(d) The City Counci.l reserves the right to review the
purchase price of_ any proposed transfer or assignment of the
cable system. Any assignee to this Franchise expressly
agrees that any negotiated sale value if unreasonable will
not be considered in the rate base for any subsequent
request for rate increases.
(e) In no event shall a transfer of ownership or
cantrol be approved without successor in interest Uecoming a
signatory to this Franchise agreement.
Section 17. Fee.
Grantee shall pay to the City of Paris a sum equal to
three (3) percent of t:he gross receipts, exclusive of
installation charges, collected by it as and for its monthly
service charges for the transmission and distribution of the
signals of television and radio broadcast signals and the
provision of nonbroadcast services it is required to provide
by the FCC from its central receiving and distribution
station to be located in or near the City of Paris to
residential and commercial users of said grantee located in
said city for the proceding calendar year, such annual
franchise payments being due and payable on or before
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March l, 1985, and annually thereafter, in full payment for
the privilege of using and occupying the streets, highways,
easements, alleys, parks and other public places in the City
of Paris for such respective calendar years, whether as
rental, supervision and inspection charges or otherwise; and
this payment sha11 be in lieu of any other tax or increased
rate of tax or other assessments or charges, except ad
valorem taxes.
Section 18. Rates.
The maximum rates which may be charged by the grantee
to subscribers shall not exceed the rates charged to sub-
scribers by Arena Cablevision Corporation, in the cities of
Reno, Blossom, Deport, Detroit and Bogata, Texas, being
shown on Exhibit B attached hereto.
The channels or services offered by grantee shall
include the same channels and services offered the sub-
scribers by Arena Cablevision Corporation, in the cities now
being served by Arena Cablevision Corporation, that being
Reno, Blossom, Deport, Detroit and Bogata, Texas, being
shown on Exhibit C attached hereto.
Rates shall at all times be fair, just and equitable.
Rate increases for regular subscriber service shall be
maintained consistent with additional services provided
(including, without limitation, additional broadcast signal
carriage) and increases in capital and operating costs
(including, without limitation, increased costs due to
in£lation).
The City expressly reserves unto itself the authority
to regulate rate increases following a public hearing when
and if the rates established by grantee are not in
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compliance hereunder. The City shall give Grantee thirty
(30) days written notice of any public hearing held pursuant
to this paragraph and shall be governed by the criteria set
forth above in establishing permitted increases.
Section 19. Charter Provisions Controllin.g.
This ordinance is in all things subject to and con-
trolled by the terms and provisions of the Charter of the
City of Paris, and. shall in no wise be construed as a
violation of said article, or any provision thereof.
Section 20. Cost of Franchising
All cost connected with franchising will be borne by
the franchisee. Upon the expiration or termination of this
franchise the successful applicant for the new franchise
shall bare the cost of that franchise procedure.
Section 21. Severability.
It is hereby declared to be the intention of the City
Council of the City of Paris that the sections, paragraphs,
sentences, clauses and phrases of this ordinance are
severable, and if any phrase, clause, sentence, paragraph or
section of this ordinance shall be declared unconstitutional
or invalid by the valid judgment or decree of any court of
competent jurisdiction, such unconstitutionality or invalid-
ity shall not affect any of the remaining phrases, clauses,
sentences, paragraphs and sections of this ordinance, since
the same would have been enacted by the City Council without
the incorporation in this ardinance of any unconstitutional
or invalid phrases, clauses, sentences, paragraphs or
sections.
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Section 22. Effective Date.
This ordinance and franchise shall take effect sixty
(60) days af ter the adoption hereof by the city council on
its third and final reading.
IYITRODUCED AND READ on first reading on October 8,
1984, at a regular meeting of the City Council of the City
of Paris; second rea.ding at a regular meeting of the City
Council on November 8, 1984; and final reading at a regular
meeting of the City Council on November 12, 1984, the same
being three (3) separate regular meetings of the City
Council of the City of Paris, the last being not less than
thirty (30) days from the first.
Passed on thir.d and final reading this 12th day of
November, 1984.
J e Graham, Mayor
ATTEST:
H. C. Greene, City Clerk
APPROVED AS TO FORM:
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T. K. Haynes, City Attorney
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