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0583~ OI~DIN~NCE OF THE CITY OF SOUTHL&KE~ TEX~S~, GR,~NTING ]% FRANCHTSE TO S]%,.',~HONS COHi~IUNIC]%TIONS~ INC.~ ]% DEL~WAEE CORPORATION, ITS SUCCESSORS OR ASSIGNS, TO OWN, OPERATE, AND MAINTAIN ]% CABLE TELEVISION SYSTEM IN THE CITY; SETTING FORTH CONDITIONS ACCOMPANYING THE GI~m~T OF FP~NCNISE; PROVIDING FOR SEVERABILITY; PROVIDING AND EFFECTIVE DATE; AND PROVIDING FOR ]%CCEPTANCE. WaEREAB, it is the mutual desire of the City of Southlake and Sammons Communications, Inc. to adopt a cable television franchise on the terms and conditions set forth herein; NOW, THEREFORE, BE IT ORD]%INED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEX~S: SECTION 1: and may be cited Ordinance." SECTION 2: Short Title. This Ordinance shall be known as the "Sammons Communications, Inc. Franchise 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 number include the singular number and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. (a) "City" means the city of Southlake, Texas. (b) "Company" means the grantee of rights under this Ordinance awarding a franchise, being Sammons Communications, Inc. (c) "Person" means any person, firm, partnership, association, corporation, company or organization of any kind. (d) "Cable Television System" or "System" means a system of - 1 - antennae, cables, wires, lines, towers, waveguides or other conductors, converters, equipment or facilities designed and constructed for the purpose of producing, receiving, amplifying and distributing audio, video and other forms of electronic or electrical signals located in the City. (e) "Gross Subscriber Revenues" means the gross amount received from the operation of all facets of the Company's business arising from operations within the City. SEC?ION 3: Qualifications of Grantee and Grant of Authority. A public hearing concerning the franchise herein granted to the Company was held on June 15, 1993 at 7:00 p.m. o'clock at the City Council Meeting~ $outhl~ke, Texas The hearing having been held and having been fully open to the public, and the city having received comments regarding the qualifications of the Company to receive this franchise, the city Council finds that the Company possesses the necessary legal, technical, character, financial and other qualifications, and that therefore the city Council hereby grants to the Company a non- exclusive franchise, right and privilege to construct, erect, operate, modify and maintain in, upon, along, across, above and over and under the highways, streets, alleys, sidewalks, public ways and public 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 Cable Television System for the purpose of distributing television and radio signals and various communications and other - 2 - electronic services to the public. The right so granted includes the right to use and occupy said streets, alleys, public ways and public places and all manner of easements for the purposes herein set forth. SECTION 4: Franchise Term. Company herein shall terminate 15 The Franchise granted the years from the date of City Council final adoption of this ordinance. shall be entitled to apply for franchise renewal process will be conducted in accordance federal, state, and local law. SECTION 5~ Payments to the city. The At that time the Company renewal. The franchise with applicable Company shall, during each year of operation under this Franchise, pay to the City an annual sum of five (5%) percent of the Gross Subscriber Revenues received by the Company from operations within the City for the prior year. At the time of payment, the Company shall furnish the city with a report showing the Company's Gross Subscriber Revenues during the preceding year. Each annual payment will be made to the city within 30 days after the end of each year. Such sum shall be compensation for the rights, privileges and franchise and in consideration of permission to use public streets and ways within the City and in lieu of street and alley rentals and charges for supervision for use of public streets and ways within the City. SECTION 6: Records and Reports. The Company shall keep full, true, accurate and current books of account reflecting Gross Subscriber Revenues, which books and records shall be made available for inspection and copying by the city's designee at all reasonable times subject to the privacy provisions of the Cable Communications Policy Act of 1984, as amended. SECTION 7: Subscriber Rates. Unless the city becomes certified to regulate subscriber rates in accordance with federal law and regulations, the Company shall annually file with the City Administrator a full schedule of all subscriber and user rates and all other charges made in connection with the Cable Television System, which rates will be set in compliance with the federal law and regulations. If the City is authorized and elects to regulate subscriber rates under the Cable Television Consumer Protection and Competition Act of 1992, or any successor law, then the City and the Company shall follow the procedures established by the Act and the applicable regulations, in determining the rates to be charged Exhibit "A" is a schedule of current subscribers to subscribers. rates. SECTION 8: Complaint Procedures: The Company shall maintain an office accessible by a toll free telephone number 365 days a year, 24 hours a day, to receive service complaints. Such complaints shall be responded to within 24 hours excepting delays resulting from Acts of God, strikes or other circumstances beyond the control of the Company. Any service complaints from subscribers shall be investigated and acted upon as soon as possible. The Company shall keep a maintenance service log which will indicate the nature of each service complaint and the time and date thereof. This log shall be made available inspection by the City. SECTION 9: Liability and Indemnification. shall pay, and by its acceptance of this franchise, for periodic The Company the Company - 4 - expressly agrees that it will indemnify, defend, and hold harmless, the City against all claims, damages, and penalties which the City may legally be required to pay as negligence in installation, operation, Television System authorized herein. a result of the Company's or maintenance of the Cable The City shall notify the Company's representative within fifteen (15) days after the presentation of any claim or demand to the City, either by suit or otherwise, made against the City on account of any negligence or contract as aforesaid on the part of the Company. If the City is also named in a claim asserting negligence on the part of the Company, the Company shall defend the City against such allegations. Notwithstanding the foregoing, if the City is found to have been negligent with respect to the allegations, the City shall reimburse the Company for fees, costs, and expenses related to the City's defense. The amount related to the City's defense will be calculated as the same percent of the fees, costs, and expenses as the percent of negligence found by a court to be attributable to the City. The Company further agrees as follows: (a) Company shall carry Worker's Compensation insurance, with statutory limits, and Employer's Liability insurance with limits of not less than One Hundred Thousand Dollars ($100,000), which shall cover all operations to be performed by Company as a result of this Ordinance. (b) Company shall carry Comprehensive General Liability and Comprehensive Automobile Liability insurance with bodily injury limits of not less than Five Hundred Thousand Dollars ($500,000) per occurrence, and property damage limits of not - 5 - less than Five Hundred Thousand Dollars ($500,000). (c) Company agrees to furnish City with certificates of insurance of said policies, which shall provide that insurance shall not be cancelled unless ten days' prior written notice shall first be given to City. (d) It is expressly agreed and understood that the Company is an independent contractor and in no event shall Company's employees be deemed to be employees of the City. SECTION 10: System Construction, Maintenance and Procedures. (a) Permission and Material. Upon grant of this Franchise to construct and maintain a Cable Television System in the City, the Company may enter into contracts with any Public Utility companies or any other owner or lessee of any poles located within or without the City to whatever extent such contract or contracts may be expedient and of advantage to the Company for use of poles and posts necessary for proper installation of the System, obtain right-of-way permits from appropriate state, county and federal officials necessary to cross highways or roads under their respective jurisdictions to supply main trunk lines from the Company's receiving antennae, obtain permission from the Federal Aviation Authority to erect and maintain antennae suitable to the needs of the System and its subscribers and obtain whatever other permits a city, county, state or federal agency may require. the construction, installation and maintenance of its System, Company will use steel, cable and electronic devices, all specialized and advanced design and type. In the of In the operation of its - 6 System, the Company will employ personnel with training, skill and experience in electronics and communications. It is recognized that neither material nor personnel of this sort may be available to the Company for its System in the event of a war or other similar national emergency. (b) Use. All transmission and distribution structures, lines, equipment, and facilities erected or maintained by Grantee within the city shall be so located as to cause minimum interference with the property or intended use of streets, highways, alleys, bridges and other public ways and places, and to cause minimum interference with the rights adjoining any of public ways. (c) street or reasonable said streets, convenience of owners of property highways, alleys, bridges or other Cuttinq of Street Surface. No surface of any paved shall be cut or disturbed by Company in laying, constructing, maintaining, operating, using, extending, removing, replacing, or repairing its System without prior notice to the City or its designated representative. If the City or its designated representative is of the opinion that such proposed cut or disturbance of a paved street surface could not be timely and satisfactorily repaired or restored, the City may require Company's proposed work to be performed by tunnelling under such paved surface rather than by cutting same. (d) Company in extending, restored by Company Restoration. The surface of any street disturbed by laying, constructing, maintaining, operating, using, removing, replacing, or repairing its System shall be immediately after the completion of the work, - 7 - at its cost and expense, to as good a condition as before the commencement of the work and maintained by Company to the satisfaction of the City, or of any City official to whom such duties have been or may be delegated, for one year from the date of completion of such restoration work. No street shall be encumbered by construction, maintenance, removal, restoration, or repair work by Company for a longer period than shall be necessary to execute such work. If, in the opinion of the City Council, there is an unreasonable delay by Company in restoring and maintaining streets after such excavations or repairs have been made, the City shall have the right without further notice to restore or repair the same and to require Company to pay the reasonable cost of such restoration or repair. (e) Relocation. 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, the Company upon reasonable notice by the City, shall remove, relay and relocate its poles, wires, cables, underground conduits, manholes and other fixtures at its own expense. (f) Placement of Fixtures. The Company shall not place poles or other fixtures where the same will interfere with any properly located gas, electric or telephone fixture, water hydrant or main, 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 close to the line of the lot abutting on said alley, and then in such manner as not to interfere with the usual traffic on said streets, alleys and - 8 - public ways. (g) Temporary Removal of Wire for Building Moving. T h e Company shall, on the request of any person holding a building moving permit, issued by the City, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal, raising or lowering of wires shall be paid by the person holding the permit, and the Company shall have the authority to require such payment in advance. The Company shall be given not less than 5 business days' advance notice to arrange for such temporary wire changes. (h) Trimminq Trees. The Company shall have the authority to trim trees upon and overhanging streets, alleys, sidewalks and public places of the City so as to prevent the branches of such trees from coming in contact with the wires and cables of the Company. (i) Extension of Service. The company may, but shall not be required to extend its current cable facilities and service. SECTION ll: Line Extension. Where the Company elects to extend its cable facilities, Company shall extend service to new subscribers, at the normal installation charge and monthly rate for customers of conditions: that classification, under the following terms and (a) Where the new subscriber, or nearest subscriber of a group of new subscribers is located within 500 feet of existing trunk cable; or (b) Where the number of homes to be passed by such new extension cable plant exceeds or equals 50 homes per mile of such - 9 new extension cable plant. (c) In the event the requirements of subsections (a) and (b) are not met, the installation cost per subscriber shall be determined as set forth in Exhibit "B" attached hereto. SECTION lZ: Compliance with Standards. All facilities and equipment of Company shall be constructed and maintained in accordance with the requirements and specifications of the National Electrical Safety Code and such applicable ordinances and regulations set forth by the City and/or any other local, state or federal agencies. SECTION 13: Company Rules and Regulations. The Company shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable the Company to exercise its rights and perform its obligations under this Franchise, and to assure uninterrupted service to each and all of its customers. However, such rules, regulations, terms and conditions shall not be in conflict with the provisions hereof or of federal and state laws. SECTION 14: Procedures. The Company shall be a party to any proceeding in which its rights, privileges or interests would be affected and shall be fully entitled to due process rights. SECTION 15: ADDrOVal of Transfer. The Company shall not sell or transfer its System to another, nor transfer any rights under this Franchise to another without written approval by the City Council, provided that such approval shall not be unreasonably withheld if the vendee, assignee or lessee has filed with the - 10 - appropriate official of the city an instrument duly executed, reciting the fact of such sale, assignment or lease, accepting the terms of this Franchise and agreeing to perform all conditions thereof. SECTION 16: The Company shall, ComDliance with FCC Rules and Requlations. at all times, comply with the rules and regulations governing Cable Television operations promulgated by the FCC. This shall include adherence by the Company to FCC rules regarding technical and engineering specifications involved in the construction of the System and signal carriage therein. SECTION 17: Incorporation of State Law, Federal Law, and FCC Rules and Requlations. The provisions of this Ordinance are intended to be consistent with state law, federal law, and FCC rules and regulations. If state or federal law or FCC rules and regulations authorize any form of local regulation of cable television systems not included in this Ordinance, it is agreed have the option to implement the regulations that the City shall so authorized. SECTION 18: Publication Costs. The Company shall assume the costs of the publication of this Franchise as such publication is required by law. A bill for publication costs shall be presented to the Company by the appropriate City officials upon the Company's filing of its acceptance of this Franchise and the publication costs shall be paid at that time by the Company. SECTION 19: Activities Prohibited. The Company shall not allow its cable or other operations to interfere with television reception of persons not served by the Company. - 11 - SECTION ZO: Severabilitv. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court or agency 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 21: Effective Date. This Ordinance shall take effect after its adoption by the City Council, receipt by the City of certificates evidencing the Company has obtained all insurance required by this Ordinance, and execution of the acceptance of the Franchise by Company. ATTEST: ~ity Clerk CITY OF SOUTHLAKE Date: ~ /~//~;~ - 12 - ACCEPTANCE OF FRANCHISE By signing this acceptance statement, Sammons Communications, Inc., hereby accepts this Ordinance as the agreement between Company and the City and does hereby agree to be bound by all of its terms, provisions and conditions. SAMMONS COMMUNICATIONS, INC. slake\cabte.ord(5/27/9:~) -- 13 -- SCALE; I': 1500' (APPROX.) ~CAI~LE IN SOUTHLAKJ '~,~.... CITY LIMITS TOTAL 52,55Z" (6.17 MI.} •• SAMMONS COMMUNICATIONS, INC. August 18, 1993 Sandra L. LeGrand City Secretary CITY OF SOUTHLAKE 667 North Carroll Avenue Southlake, Texas 76092 Re: City of Southlake Franchise Agreement Acceptance Dear Sandra: Enclosed please find an executed Acceptance in relation to the Franchise Agreement between the City of Southlake and Sammons Communications, Inc. Should you have any questions, please call me. Sincerely, Elt(JU'L-- Elaine Ealy j Legal Secretary /ee Enclosure 3010 LBJ Freeway, Suite 800 • Dallas, Texas 75234 • 214 484-8888 • 214 919-5799 (FAX) Fort Worth Star-Telegram • 400 W.SEVENTH STREET•FORT WORTH,TEXAS 76102 THE STATE OF TEXAS runty of Tarrant Before me, a Notary Public in and for said County and State, this day personally appeared Billing Specialist for the Fort Worth Star-Telegram, published by the Star-Telegram Inc . at Fort Worth, in Tarrant County, Texas; and who, after being duly sworn, did depose and say that the following clipping of an advertisement was published in the above named paper on the following dates : DATE AD INVOICE NO. DESCRIPTION AD SIZE TOTAL INCH/LINE RATE AMOUNT JUN 12 2487952 CL . 358 1X27 L 27 . 43 11 . 61 june 18 O ANCENO.N P . O. # ORDINANCE 583 An ordllnan4e of the CIas,granting of SouthI0 ke,Tex a franchi to Sammons C.om- munllcations, Inc. A ela- ware Corporation,it succes- sors or assigns to own, oileret� and mainfaln a cable television system in the city; setting fortti conditions of ompanying tt franthlse,prov dding for sev- erabllity;providingtndeNec- fflcviceepdattee• and prov ding floor Cpass cill of ptthheeed by the South) ke thls1he15thCddayooff June,1993 Gary FiCCkes: Mayor of Southlake Attest: SandraL.LeGrand SIGNED ApprovCaldfyaSec rforan D SWORN TO BEFORE ME , THIS THE DAY OF tm waey ttor NOTARY PUBLIC TARRANT COUNTY, TEXAS TEAR ALONG THIS PERFORATION AND RETURN THE LOWER PORTION WITH YOUR PAYMENT-� REMIT TO : 400 W. SEVENTH , FW, TX 76102 Fort WorthStar-TelegramR2WT Tc: 9YXn9X1XNXXAIIX9p( XXI(XI AN1 2051 2487952 NUMBERACCOUNT CIT57 ADUHT 11 . 61 PAGE ;F 1 CITY OF SOUTHLAKE ORIGINAL 667 N CARROLL AVE 11. 61 PLEASE PAY SOUTHLAKE TX 76092-9595 THIS AMOUNT ATTN : FAX PLEASE WRITE IN AMOUNT ENCLOSED Fort Worth Star-Telegram 400 W.SEVENTH STREET•FORT WORTH,TEXAS 76102 THE STATE OF TEXAS runty of Tarrant Before me, a Notary Public in and for said County and State , this day personally appeared SUE RUSSELL Billing Specialist for the Fort Worth Star-Telegram , published by the Star-Telegram Inc . at Fort Worth, in Tarrant County, Texas ; and who , after being duly sworn, did depose and say that the following clipping of an advertisement was published in the above named paper on the following dates : AL DATE AD INVOICE NO. DESCRIPTION AD S17E INCIiT/LIINE RATE AMOUNT APR 09 2442270 CL . 358 1X36 L 36 . 43 15. 48 lApr 9 P . O . # ORD 583 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIV- EN — .-- TO ALL INTERESTED i CITIZENS that the City Coun- cil of the City of South lake, hearing iing onbApprild2gra p3 be- b ginning at7:00p.m.,7ntth9eCity Council Chambers of City Hall,667 North Carroll Ave- nue, Southlake, Texas. Pur- pose of the hearing is to con- sider the following ordinance In public hearing,as follows: ORDINANCE NO.583 AN ORDINANCE GRANTING M FRANCHISE TO SAM- MONS COMMUNICA- ,.- TIONS, INC. A DELA- S I G N E 'C WARE CORPORATION 14m�..i RIL 1993 LTs succEssGRs Gd D SWORN TO BEFORE ME, T IS THE D OF SIGNS TO OWN AND ERATt AND NOTARY PUBLI INACABLETELEVI- � __ _ � IN SYSTEM IN THE -- _XASF SOUTHLAKE, FORTH CONDITIONS TARRANT COLNTY, TEXAS GRANTCANYING TOF FRANCHISE. City of Southlake Sandra L.LeGrand City Secretary TEAR ALONG THIS PERFORATION AND RETURN THE LOWER PORTION WITH YOUR PAYMENT REMIT TO : 400 W . SEVENTH , FW, TX 76102 Fortprth tar- F:E'�A'1"�'C': �:. 1 9(4(�E9Q�DOlt5XX7p1F1(VQ4G�tIXX$Q�X�(�X Tele r gam ACCOUNT AMOUNT NUMBER C I T 5 7 DUE 15 . 48 1 1 PAGE OF CITY OF SOUTHLAKE ORIGINAL 667 N CARROLL AVE 15. 48 SOUTHLAKE TX 76092-8898 PLEASE PAYTHIS AMOUNT ATTN : SANDY LEGRAND PLEASE WRITE IN AMOUNT ENCLOSED