Ord 3305 4/3/1978 k,
ORDINANCE 3305
AN ORDINANCE ESTABLISHING THE RIGHT AND PRIVILEGE
OF VISTA CABLEVISION, INC. HEREUNDER, OR THEIR
SUCCESSORS AND ASSIGNS, TO CONSTRUCT, OPERATE, AND
MAINTAIN A CABLE TELEVISION SYSTEM WITHIN THE CITY
OF WICHITA FALLS: PROVIDING THAT THE FRANCHISE SHALL
BE NONEXCLUSIVE: SETTING FORTH THE TERRITORIAL AREA
INVOLVED AND THE TIME OF CONSTRUCTION: ESTABLISHING
LIABILITY AND INDEMNIFICATION: ESTABLISHING OPERA-
TIONAL STANDARDS AND STANDARDS OF SERVICE: ESTABLISH-
ING CONDITIONS ON STREET OCCUPANCY: ESTABLISHING RATES
TO SUBSCRIBERS AND PAYMENT TO THE CITY: AND FOR OTHER
PURPOSES.
BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY
OF WICHITA FALLS:
SECTION 1 SHORT TITLE
This ordinance shall be known and may be cited as the "Wichita Falls
Cable Television Ordinance."
SECTION 2 DEFINITIONS
(a) "Cable Television Service" means the delivery by the grantee
to television receivers, or any other suitable type of audio-video
communication receivers, to all subscribers in the city of all
signals of over-the-air television broadcasters allowed by the FCC
to be carried by the cable television system as defined by the FCC;
all FM radio stations carried on the system; local origination
channels; educational channels; public access channels; leased
access channels; pay television channels; and other services at the
option of the company.
(b) "Board" is the Board of Aldermen of the City of Wichita Falls.
(c) "Cable television system" shall mean any system which re-
ceives and amplifies signals broadcast by one or more television
and/or radio stations and which transmits programming originated
by the system itself or by another party, and distributes such sig-
nals and programming by wire, cable, microwave, satellite or
other means to persons who subscribe to such service.
(d) "City" is the City of Wichita Falls in its present incorporated
form or as it may be changed by annexations.
(e) "Converter" means 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 all signals delivered at desig-
nated dial locations.
(f) "Grantee" is defined as Vista Cablevision, Inc. the party to which
a franchise under this ordinance is granted by the Board, and its or
their lawful successors as assigns.
(g) "Gross revenues" means any and all compensation, in whatever
form, exchange or otherwise, derived from all cable services in the
city, not including any taxes or services furnished by the grantee im-
posed directly on any subscriber or user by a city, county, state or
other governmental unit, and collected by the grantee for such entity.
, a
(h) "Monitoring" means observing a communications signal, or the
absence of a signal, where the observer is neither the subscriber
nor the programmer, whether the signal is observed by visual or
electronic means, for any purpose whatsoever. Provided, monitor-
ing shall not include system wide, non-individually addressed sweeps
of the system for purposes of verifying system integrity, controlling
return paths transmissions, or billing for pay services.
(i) "Party" is any person, firm, partnership, association, corpor-
ation, company, or organization of any kind.
(j) "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, alleycourt, boulevard, parkway, drive or other
easement now or hereafter held by the City for the purpose of public
travel and shall include other easements or rights-of-way as shall be
now held or hereafter held by the City which shall, within their pro-
per use and meaning entitle the City and its grantee to the use there-
of for the purposes of installing or transmitting cable television
system transmissions over poles, wires, cables, conductors, ducts,
conduits, vaults, manholes, amplifiers, appliances, attachments,
and other property as may be ordinarily necessary and pertinent to
a cable television system.
(k) "Subscriber" means a receipient of cable television service.
(1) "User" means a person utilizing a cable television system channel
for purposes of production or transmission of material to subscribers,
as contrasted with receipt thereof in a subscriber capacity.
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 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 interception and distri-
bution of television and radio signals.
(b) The right to use and occupy said streets for the purposes herein
set forth shall not be exclusive, and the City reserves the right to
grant a similar use of said streets to any party at any time during the
period of the franchise.
SECTION 4 COMPLIANCE WITH APPLICABLE LAWS AND ORDINANCES
(a) The grantee shall, at all times during the life of the franchise,
be subject to all lawful exercise of the police power by the City and
to such reasonable regulation as the City shall hereafter provide.
(b) The franchise granted pursuant to this ordinance is granted sub-
ject to the right of the City or the grantee to renegotiate the terms of
the ordinance if federal or state regulations substantially alter the
required services, fees, costs, conditions or standards upon which
the cable system is to operate.
SECTION 5 FRANCHISE TERRITORY AND LINE EXTENSION POLICY
The franchise is for the present territorial limits of the City and for
any area henceforth added thereto during the term of the franchise.
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The grantee agrees to provide cable television service to all property
within the city limits of Wichita Falls, Texas (initial service area) as
of the effective date of this ordinance in accordance with the construc-
tion timetable detailed in Section 6.
Once construction has been completed in the initial service area, the
company will extend service within six months of a request in all areas
where the average density is 7 subscribers per quarter mile of aerial
cable or greater. In those areas where the density is less or the area
is served by underground utilities, the company will provide service
under its line extension policy outlined below.
Line Extension Policy: In any area where the average density is less
than 7 subscribers per quarter-mile of cable, or is served by under-
ground utilities, the system shall bear its pro rata share of the current
aerial construction cost based on the actual number of potential sub-
scribers per quarter mile divided by seven. The remaining construction
cost will be borne on a pro rata basis by each actual cable television ap-
plicant committing to service within the pro rata extension. In the case
of new subdivisions, developers may elect to bear the remaining costs,
and service will be made available to residents at normal rates. Mile-
age will be measured from the end of the nearest trunk cable.
SECTION 6 CONSTRUCTION TIMETABLE
(a) Construction and installation of the system shall be completed as
presented in Grantee's proposal within three (3) years of the date that
FCC certification of the system is received. The grantee shall submit
all certification material necessary to FCC within thirty (30) days after
the effective date of the ordinance. All material necessary for construc-
tion permits shall be submitted to the FCC within 120 days after the
effective date of this ordinance.
(b) Failure to comply with the construction timetable as bid may be
treated by the Board as a material breach, to which the remedy of
Section 30 shall apply, or a nonmaterial breach, to which the remedy
of Section 31 shall apply.
(c) The wiring schedule offered by the Grantee and accepted by the City
includes all property inside the city limits of the following census tracts:
Construction Year Census Tract Numbers
1 106, 107, 108, 109, 110, 116, 117, 118, 119, 120,
121, 122, 125, 126, 127, 128
2 101, 102, 63, 104, 105, 111, 112, 113, 114, 115,
123, 124, 129, 130, 131, 132, 133, 134
3 Completion of growth areas & pockets not previously
constructed due to easement problems, etc.
4 Completion of growth areas.
5 Completion of growth areas.
SECTION 7 LIABILITY AND INSURANCE
(a) The grantee by its acceptance of the franchise specifically agrees that
it shall save the City harmless from all loss sustained by the City by rea-
son of any suit, judgment, execution, claim, or demand resulting from
the construction, operation, or maintenance by the grantee of its cable
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television system in the City, and that it shall pay all damages and
penalties which the City may legally be required to pay as a result of
granting the franchise. These damages or penalties shall include, but
shall not be limited to, damages arising out of the installation, oper-
ation, or maintenance of the cable television system authorized herein,
whether or not any act or omission complained of is authorized, allowed,
or prohibited by the franchise.
(b) The grantee shall pay and by its acceptance of the franchise speci-
fically agrees that it will pay all expenses incurred by the City in defend-
ing itself with regard to all damages and penalties mentioned in Section
7(a). These expenses shall include all out-of-pocket expenses, such as
attorney fees, and shall also include the reasonable value of any services
rendered by the City Attorney or his assistants or any employees of the
City.
(c) The grantee shall maintain and by its acceptance of the franchise
specifically agrees that it will maintain throughout the term of the
franchise, liability insurance insuring the City and the grantee with
regard to all damages mentioned in Section 7(a) in the minimum amount
of:
(1) $300,000 for property damage to any one person;
(2) $500, 000 for property damage in any one accident;
(3) $500,000 for personal injury to any one person; and
(4) $1,000,000 for personal injury in any one accident.
(d) The insurance policy obtained by the grantee in compliance with
this section must be approved by the City Manager and such insurance
policy, along with written evidence of payment of required premiums,
shall be filed and maintained with the City Clerk during the term of the
franchise.
(e) Neither the provisions of this section nor any damages recovered
by the City thereunder, shall be construed to excuse faithful perform-
ance by the grantee or limit the liability of the grantee under any fran-
chise issued hereunder or for damages.
SECTION 8 LETTER OF CREDIT
(a) Within ten (10) days after the effective date of this contract, the
grantee shall deposit with the Chief Accounting Officer of the City a
letter of credit from a financial institution in the amount of $30, 000.
The form and content of such letter of credit shall be approved by the
City Attorney. The letter of credit shall be used to insure the
faithful performance by the grantee of all provisions of this contract;
and compliance with all orders, permits and directions of any agency
of the City having jurisdiction over its acts or defaults under this con-
tract, and the payment by the grantee of any claims, liens and taxes
due the City which arise by reason of the construction, operation or
maintenance of the system.
(b) The letter of credit shall be maintained at $30,000 during the
entire term of this franchise, even if amounts have to be withdrawn
pursuant to subdivision (a) of this section.
(c) If the grantee fails to pay to the City any compensation within the
time fixed herein; or, fails, after ten (10) days notice to pay to the
City any taxes due and unpaid; or, fails to repay 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, fails, after three (3) days notice of such
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failure by the Office of the City Manager to comply with any provision
of this contract which the Office of the City Manager reasonably deter-
mines can be remedied by demand on the letter of credit, the Chief
Accounting Officer may immediately request payment of the amount
thereof, with interest and any penalties, from the letter of credit.
Upon such request for payment the Chief Accounting Officer shall notify
the grantee of the amount and date thereof.
(d) The rights reserved to the City with respect to the letter of credit
are in addition to all other rights of the City, whether reserved by this
contract or authorized by law, and no action, proceeding or exercise of
a right with respect to such letter of credit shall affect any other right
the City may have.
SECTION 9 TECHNICAL PERFORMANCE STANDARDS
(a) Grantee shall comply fully with the technical rules and standards
for cable television operations as adopted by the Federal Communi-
cations Commission, 47 C.F.R. Part 76, Subpart K, and as amended
from time to time.
(b) The applicant has agreed to voluntarily provide a quality of system in
excess of the requirements of the FCC. The following distribution sys-
tem performance specifications which are beyond those required by the
FCC will be met in Wichita Falls.
The following distortion specifications apply to a system consisting
of 20 trunk amplifiers, 1 bridger and 1 line extender in cascade with
maximum channel loading of 37 channels of video and 40 FM signals
for the design bandwidth. All distortion specifications apply over a
temperature range of -20°F to +120°F.
Item
(1) The carrier to noise ratio shall be no less than 47dB at
70°F and no less than 45.5dB at 110°dB ambient temperature.
(2) Second order distortions shall be at least 60dB below visual
carrier.
(3) Total harmonic distortions shall be at least 52dB below visual
carrier.
(4) Cross-modulation shall be at least 52dB below visual carrier
with synchronous video modulation.
(5) Hum modulation shall not exceed 2% (60 or 120 hz).
(6) Group delay shall not exceed + 120 nsec. in the forward dir-
ection.
(7) Gain/frequency response peak to valley shall not exceed
(N/12)+1dB for the trunk and (N/12)+1.5dB for the feeder.
When N is the number of trunk amplifiers in cascade to the
point of measurement.
(8) Echo measurements shall conform to the P. Mertz echo curve
published in the Journal of the SMPTE, May 1953.
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SECTION 10 PROOF OF PERFORMANCE - TESTING
(a) Tests and measurements to ensure compliance with technical
standards shall be performed in a manner that is consistent with the
provisions of 47 C.F.R. 76.609, et seq, and as amended from time
to time.
(b)(1) When there have been similar complaints made, or where there
exists other evidence, which, in the judgment of the City, casts doubt
on the reliability of quality of cable service, the City shall have the
right and authority to compel the grantee to test, analyze and report
on the performance of the system. Such test or tests shall be made,
and the reports of such test or tests shall be delivered to the City no
later than 14 days after the City formally notifies the grantee.
(b)(2) The City's right under this provision shall be limited to requir-
ing tests, analyses, and reports covering specific subjects and charac-
teristics based on said complaints or other evidence 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.
(b)(3) Said tests and analyses shall be supervised by a registered
professional engineer, not on the permanent staff of the grantee and
selected jointly by the City and the grantee. The aforesaid engineer
shall sign all records of special tests and forward to the City such re-
cords with a report interpreting the results of the test and recommen-
ding actions to be taken by the City.
SECTION 11 PROOF OF PERFORMANCE RECORDS
(a)(1) All tests and measurements required to be taken by the grantee
and the engineer in 10(a) of this ordinance shall be recorded maintained
and made available upon request to the City.
(a)(2) The grantee shall prepare a technical report that describes de-
tails of the cable system construction plans as described in this section
The technical report shall include the following details and be submitted
and approved by the City before construction:
(A) Justification of the site selected, including:
-- listing of television and FM radio stations carried
on the system
-- location of microwave terminals
-- location of local origination centers
-- location of antenna site
-- distance from antenna site to farthest area served
by the system
-- height of tower
-- height of antenna site in relation to average terrain
-- accessibility of antenna site all year round
-- local construction restrictions on tower
-- power availability for antenna site
-- location of antenna arrays on the tower
-- direction of desired signal sources
-- analysis of potential sources of interference in the
nearby environment.
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(B) System information, including:
-- statement of adherence to construction standards
-- as-built drawings of the system
-- description of local origination equipment
-- signal level readings for all active channels at all
amplifier locations; trunk input and output, and bridger
output
-- identification of trunk and feeder cables
-- calculations of system temperature capabilities.
(b) Any special tests or measurements required by the City to be
taken pursuant to Section 10(b) should be reported to the City within
fourteen (14) days after such tests or measurements are performed.
Such report shall include the following information: the nature of
the complaint which precipitated the special tests; what system com-
ponent was tested, the equipment used and procedures employed in
said testing; the results of such tests; and the method in which such
complaints were resolved. Any other information pertinent to the
special test shall be recorded.
(c) Should any of the following occur, the grantee must notify the City
with particulars and secure approval of City:
-- addition to, deletion of, or change in received channel
-- addition to, deletion of, or change in distributed channel
or in channel conversion
-- change in location of headend or antenna sites
-- addition to, or changes in location of centers for origin-
ation of programs, and the installation of bi-directional
facilities or additional lines to make connection to the head-
end
-- interconnection with other cable systems.
SECTION 12 CONSTRUCTION STANDARDS AND SPECIFICATIONS
(a)(1) Methods of construction, installation, and maintenance of the
City's cable television system shall comply with the National Elec-
trical Safety Code 1975 (ANSI CI-1975) to the extent that such Code
is consistent with local law affecting the construction, installation,
and maintenance of electric supply and communications lines. To
the extent that such Code is inconsistent with other provisions of
this franchise or with local law, the latter shall govern.
(a)(2) Any tower constructed for use in the City's cable television
system shall comply with the standards contained in Structured
Standards for Steel Antenna Towers and Antenna Supporting Struc-
tures, EIA Standards RS-222-A as published by the Engineering
Department of the Electronic Industries Association, 2001 Eye
Street, N.W. , Washington, D. C. 20006.
(a)(3) Installation and physical dimensions of any tower constructed
for use in the City's cable television system shall comply with all
appropriate Federal Aviation Agency regulations, including, but not
limited to, Objectives Affecting Navigable Airspace, 14 C.F.R. 77.1
et.seq. , February 1965.
(a)(4) Any antenna structure in the City's cable television system
shall comply with Construction, Marking and Lighting of Antenna
Structure, 47 C.F.R. 17.1 et. seq. , September 1967.
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(a)(5) All working facilities and conditions used during construction,
installation and maintenance of the City's cable television system shall
comply with the standards of the Occupational Safety and Health Admin-
istration.
(b) Each cable distribution system on the public streets shall comply
with all applicable laws and ordinance and governmental regulations
regarding clearances above ground.
(c) The grantee shall at all times use ordinary care and shall install
and maintain in use commonly accepted methods and devices for pre-
venting failures and accidents which are likely to cause damage, in-
juries, or nuisances to the public.
(d) The grantee shall construct and operate the system and related
facilities in accordance with all generally accepted related industry
codes, standards and recommendations, that are applicable.
SECTION 13 SYSTEM DESIGN
(a) The system shall consist ostensibly of what is described in the
grantee's application dated February 3, 1978 and to be implemented
as per Section 11 of this ordinance.
(b) The cable system will be capable of carrying up to 37 channels of
video services and up to 40 FM signals, plus data in the forward dir-
ection. Up to 4 video channels plus data may be carried in the reverse
direction on each of the main 4 trunks.
(c) Parental control key devices will be available for channels so that
parents may restrict their childrens' viewing of any objectionable
material on any pay channel.
(d) Channel capacity to subscribers:
Downstream
Frequency Spectrum 50-300 -MHz
Channel Capacity 37 (36 channel converters
to be used initially)
Two-way capability is to be installed and maintained in accordance
with FCC regulations.
Upstream (Future)
Frequency Spectrum 5-30 -MHz
(e) Wichita Falls; Municipal Auditorium/City Hall, Technical Vo-
cational Center (or other facility as designated by the Wichita Falls
Independent School District) and Midwestern State University from
the University television studio, will have complete access to the
upstream and downstream capabilities of the system. If community
needs exceed the capabilities of the system, additional cables must be
installed to meet those needs.
(f) Two earth stations will be provided for satellite usage.
(g) Automatic all channel emergency alerting override function will
be provided from a mutually agreed upon location. This function will
only be used by appropriate governmental representatives and not used
for any other purpose except as a testing function.
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(h) The grantee shall maintain equipment capable of providing stand-
by power for headend, transportation and trunk amplifiers for a mini-
mum of two hours.
SECTION 14 SYSTEM SERVICES AND FACILITIES
(a) The grantee shall carry all television broadcast signals on the
system which are allowed under FCC rules.
(b) In addition to the broadcast signals carried pursuant to subsection
(a) the grantee has freely offered and the City accepts the following
two level service that will initially be offered to all subscribers at the
time cable television service becomes operational.
Service Level One (Economy Service)
The following 12 channels:
KFDX (3) Wichita Falls, TX (NBC), plus all-night movies
and sports from WTCG (17) Atlanta
Program Guide
KAUZ (6) Wichita Falls, TX (CBS)
Home Box Office (HBO)
Sports and Financial Newswire
National and International News
KSWO (7) Lawton, OK (ABC)
KXTX (39) Dallas, TX (Specialty/Religious)
Local Origination featuring Madison Square Garden
KTVT (11) Dallas-Ft. Worth (IND)
Composite Access Channel
KIDZ (24) Wichita Falls, TX (PBS)
Service Level Two (Basic Service)
The following 36 channels:
KFDX (3) Wichita Falls, TX (NBC), plus all-night movies
and sports from WTCG (17) Atlanta
Program Guide
KAUZ (6) Wichita Falls, TX (CBS)
Home Box Office (HBO)
Sports and Financial Newswire
National and International News
KSWO (7) Lawton, OK (ABC)
KXTX (39) Dallas, TX (Specialty/Religious)
Local Origination featuring Madison Square Garden
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KTVT (11) Dallas-Ft. Worth (IND)
Composite Access Channel
KIDZ (24) Wichita Falls, TX (PBS)
Fanfare
Automated Swap 'N Shop
Family Premium Movie Channel
Christian Broadcasting Network (CBN)
Spanish International Network
Texas State Newswire
Color Weather Radarscope
Time and Weather
Slo-Scan Video News Service
Composite Family Channel
Public Access/Bulletin Board
Municipal Access/Bulletin Board
Educational Access/Bulletin Board
Midwest University Access/Bulletin Board
Consumer Shopping Guide
Captioned PBS Programming for the Hearing Impaired
Color Bars - Talking Books for the Blind
PTL - Primarily Religious
Financial Newswire Full-time
Five Channels - Reserved for Lease Channels and Expansion
(c) FM Radio Service:
The grantee also will provide for carriage of the following
FM stations:
FM Stations within 60 miles of Wichita Falls
Wichita Falls Freq. MHz
KBID 92.9 MOR-Adult
KLUR 99.9 Country & Western
KNTO 103.3 MOR
Lawton, OK
KRLG 98.1 Contemporary, MOR
KLAW 101.5 MOR
Vernon, TX
KVWC 102.3 Oldies
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Graham, TX Freq. MHz
KWKQ 107.1 Beautiful Music
Duncan, OK
KRHD 102.3 Country & Western(Dup AM)
In addition the grantee is committed to carry at least eight (8)
of the FM signals from the following list:
Dallas, TX
KCHV 90.9 Diversified
KDTX 102.9 Inspirational
KERA-FM 90.1 NPR/Variety
KKDA-FM 104.5 Easy Listening
KNUS 98.7 Rock
KOAX 105.3 Beautiful Music
KAFM 92.5 Progressive, Country &
Western
KMEZ 100.3 Beautiful Music
KZEW 97.9 Rock
WRR-FM 101.1 Classical
Ft. Worth, TX
KESS-FM 93.9 Spanish
KWXI 97.1 MOR, Oldies
KFWD 102.1 MOR
KNOK-FM 107.5 Black (Dup AM 50%)
KPLX 99.5 MOR
KSCS 96.3 Country & Western
(d) Local Program Origination Facilities - The grantee has freely offered
to establish a local origination studio and small access-only studio to be
equipped and located as defined in their proposal. Studio construction will
be concurrent with plant construction. The grantee also agrees to donate
time, labor, training and equipment to ensure the meaningful development
of access uses.
The grantee also will provide a fully equipped mobile unit as described
in the proposal, permitting program origination to occur from any
location in Wichita Falls.
SECTION 15 SERVICE TO PUBLIC BUILDINGS
(a) Free Connections for Public Buildings - Public buildings shall be
connected to the cable system at no charge if they are within 300' of a
trunk or feeder line. Such requests for service are to be initiated by
authorized local government officials. Installations at locations exceed-
ing 300' shall be at cable company's actual costs for time and materials
exceeding 300'. One service drop per facility shall be made at the
municipal auditorium, city hall, the county courthouse, police and fire
facilities, public libraries, all public and parochial schools. If more
than one drop is required (per facility), the charge shall be based on
company's cost of time and materials. No monthly charges shall be
made for providing basic services at these public buildings.
(b) Free Connections to Midwestern University - Upon the request of an
authorized University official, Midwestern University academic buildings
and residence halls should be connected to the cable system at no charge.
If more than one service drop is required (per building), the charge shall
be based on the company's cost of time and materials. No monthly charges
should be made for providing basic services at the academic buildings.
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SECTION 16 GRANTEES APPLICATION INCORPORATED
The grantee shall provide all services specifically set forth in its
application to provide cable television service to the City of Wichita
Falls, Texas, and by its acceptance of the franchise, the grantee
specifically grants and agrees that its application is thereby incor-
porated by reference and made a part of the franchise. In the event
of a conflict between such proposals and the provisions of this ordin-
ance, that provision which provides the greatest benefit to the City,
in the opinion of the Board, shall prevail.
SECTION 17 FAILURE TO PROVIDE SERVICES AS PROMISED
Failure to provide the services promised in grantee's application as
incorporated by Section 16 of this ordinance, shall be deemed a
material breach of this ordinance for which the provisions of Section
30 shall apply.
SECTION 18 PERFORMANCE EVALUATION SESSIONS
(a) The City and the grantee shall hold scheduled performance
evaluation sessions within thirty days of the fifth and tenth anni-
versary dates of the grantee's initiating cable service in Wichita
Falls. All such evaluation sessions shall be open to the public.
(b) Special Evaluation Sessions. Special evaluation sessions may be
held at any time during the term of the franchise, provided that both
the City and the grantee shall mutually agree on the time, the place,
and the topics to be discussed.
(c) All evaluation sessions shall be open to the public and announced
in a newspaper or general circulation at least five (5) days before
each session. 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 and 9:00 P.M. , for five (5) consecutive days
preceding each session.
(d) The following topics may be discussed at every scheduled evalu-
ation session: service rate structures; free or discounted services;
application of new technologies; system performance; services pro-
vided; programming offered; customer complaints; privacy; amend-
ments to this ordinance; and judicial and FCC rulings.
Topics in addition to those listed may be added if agreed upon by both
parties. 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 fifty or more qualified
electors of the City, the proposed topic or topics shall be added to
the list of topics to be discussed at the evaluation session.
SECTION 19 CONDITIONS ON STREET OCCUPANCY
(a) All transmissions and distribution structures, lines, and equip-
ment erected by the grantee within the City shall be so located as to
cause minimum interference with the proper use of streets, and to
cause minimum interference with the rights and reasonable conveni-
ence of property owners who join any of the said streets.
(b) In case of disturbance of any street or paved area the grantee shall,
at its own cost and expense and in a manner approved by the City, re-
place and restore such street or paved area in as good a condition as
before the work involving such disturbance was done.
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(c) If at any time during the period of the franchise the City shall
lawfully elect to alter or change the grade of any street, the grantee,
upon reasonable notice by the City, shall remove, relay, and re-
locate its poles, wires, cables, underground conduits, manholes, and
other fixtures at its own expense.
(d) Any poles or other fixtures placed in or adjacent to any street by
the grantee shall be placed in such manner as to comply with all re-
quirements of the City.
(e) The grantee shall, in the request of any person holding a moving
permit issued by the City, temporarily raise or lower its wires to
permit the moving of buildings. The expense of such temporary re-
moval or raising or lowering of wires shall be paid by the person
requesting the same, and the grantee shall have the authority to re-
quire such payment in advance. The grantee shall be given not less
than forty-eight (48) hours advance notice to arrange for such tempor-
ary wire changes.
(f) The grantee shall have the authority to trim trees upon and over-
hanging streets of the City so as to prevent the branches of such trees
from coming in contact with the wires and cables of the grantee, ex-
cept that at the option of the City, such trimming may be done by it
or under its supervision and direction at the expense of the grantee.
(g) In all sections of the City where the cables, wires, and other like
facilities of public utilities are placed underground, the grantee shall
place its cables, wires, or other like facilities underground to the
maximum extent that existing technology reasonably permits the gran-
tee to do so.
(h) The grantee shall provide plans and specifications for all con-
struction within City streets to the Directors of Public Works and
Traffic for their review at least 30 days prior to the start of construc-
tion. The approval of both departments shall be necessary before con-
struction commences. This provision shall apply to each construction
sequence if the construction is accomplished in phases.
SECTION 20 ERECTION, REMOVAL, AND COMMON USER OF POLES
(a) No poles or other wire-holding structures shall be erected by the
grantee without prior approval of the Director of Public Works with
regard to location, height, type, and any other pertinent aspect. How-
ever, no location of any pole or wire-holding structure of the grantee
shall be a vested interest and such poles or structures shall be re-
moved or modified by the grantee at its own expense whenever the
Director of Public Works determines that the public convenience would
be enhanced thereby.
(b) Where poles or other wire-holding structures already existing for
use in serving the City are available for use by the grantee, but it does
not make arrangements for such use, the Director of Public Works may
require the grantee to use such poles and structures if it determines
that the public convenience would be enhanced thereby and the terms of
the use available to the grantee are just and reasonable.
(c) Where the City or a public utility serving the City desires to make
use of the poles or other wire-holding structures of the grantee, but
agreement thereof with the grantee cannot be reached, the Board may
require the grantee to permit such use for such consideration and upon
such terms as the Board shall determine to be just and reasonable, if
the Board determines that the use would enhance the public convenience
and would not unduly interfere with the grantee's operations.
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SECTION 21 INITIAL RATES TO SUBSCRIBERS
The grantee shall be permitted to charge subscribers up to the following
rates for its services:
(a) Item
Installation (a) Monthly
(1) Economy Service, Primary Outlet $15 new $5.50
$10 reconnect
(2) Basic Service, Primary Outlet $15 new $6.95
$10 reconnect
(3) Economy Extra Outlet, Each $15 new $1. 00
$ 3 reconnect(b)
(4) Basic Extra Outlet, Each $15 new $2.50
$ 3 reconnect
(5) FM Outlet (c) $10 new $1.00
$ 3 reconnect
(6) Move any Outlet $10 N/A
(7) Reconnect extra Outlet, Separate
Trip $10 (b) N/A
(8) Delinquent Account - Collect at
Door $ 7 N/A
(9) Transient Occupancy or Non-
residential Negotiated Negotiated
(10) Multi-Unit Single Bill, using 60% of
acceptable existing wiring Negotiated applicable
rate per unit
(11) Multi-Unit Single Bill, using 80% of
company-installed wiring Negotiated applicable
rate per unit
(12) Converters
All converters remain property of company, and subscriber
assumes responsibility for loss, theft, or damage.
A $15 deposit is collected at installation for each converter.
If the converter is returned to the company, the deposit will
be applied to the account balance. (At disconnections, any
remaining credit balance is promptly refunded.)
Reasonable repair charges may be made to the account for
damages beyond normal wear and tear. Reasonable charges
will be made to the account for each converter lost or not re-
turned on disconnection from service.
(13) Initial Pay T.V. Rates
Installation (d) Monthly
HBO Movies, Entertainment $15 $6.95
Fanfare Movies, Sports $15 $8. 75
Family Premium Movie Channel $15 $3.95
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The pay television rates are not considered by the FCC to
be subject to regulation by local authorities, but are sub-
ject to the Franchise Fee.
(14) Studio and equipment usage rates.
a. Noncommercial users (public access, governmental,
non-profit groups, etc.)
In the event grantee works out special use arrange-
ments with any group providing facilities or personnel,
special rates will apply, based on services provided by
grantee. Otherwise, commercial rates apply.
b. Commercial users
Initial rates will be:
Studio Production Time $75/hr.
Remote Production Time $200/hr. plus travel
System Playback $ 7.50/hr.
Studio rates will not be subject to City regulation.
(15) Governmental and educational facilities
a. Installation fees
One cable outlet (per facility): No charge for one
service drop within 300 feet of cable systems.
Predetermined time and materials charged for drops
over 300 feet.
More than one outlet (per facility): Predetermined
time and materials charge.
b. Monthly charges
No monthly fee.
(16) Advertising rates - Rates charged will be a function of system
size, demand for advertising, and strength of origination pro-
gramming. When established they will be placed on file with
the City. No charge will be made for nonprofit organization
advertising. Advertising rates will not be subject to City regu-
lations, but will be subject to Franchise Fee.
(17) Leased Channel - Rates charged will be negotiated, and will be
a function of cost of service, length of contract, and demand
for lease channels. Any subsequent rates so established will
be placed on file with the City. Lease channel rates will not
be subject to City regulation, but will be subject to Franchise
Fee.
Notes:
(a) Install charges may be waived or reduced on a non-
discriminatory basis during special promotions. All
installs are standard external wiring, unless acceptable
prewire exists.
(b) $3 rate assumes reconnect at time of primary reconnect;
separate trip rate is $10.
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(c) If no primary TV outlet active, economy rates apply
for FM outlet.
(d) This installation charge waived if completed at time
of basic or economy service installation.
SECTION 22 RATE CHANGE PROCEDURE
(a) The rates as specified in Section 21 shall be in effect for a minimum
period of two years from the date of providing initial service.
(b) The grantee may establish rates for service from time to time
thereafter by filing with the City Manager a schedule of rates thirty
(30) days prior to their implementation.
(c) Between September 1 and November 30 of the years 1981, 1984
1987 and 1990, and each three years thereafter, the Board shall
determine whether it will assume rate modification authority. If the
Board declines rate modification authority, then rates may be modified
by the grantee as specified in Section 22(b). If the Board assumes rate
modification authority, then for the next three (3) years rates shall be
subject to modification only by the Board and only in accordance with
the following procedures:
(1) The grantee may petition the Board for a change in rates by
filing a revised rate schedule including its justification(s) for
said proposed new schedule.
(2) Within ten (10) days of notification by the Board of the place
and time established for a hearing on said petition, the grantee
shall notify its subscribers of the hearing by announcement on
at least two (2) channels of its system, between the hours of 7:00
and 9:00 P.M. , for five (5) consecutive days. Additionally, hear-
ings shall be announced in a newspaper of general circulation at
least five (5) days before the date of the hearing. Following all
proper notice, but in no event later than ninety (90) days from the
date of said petition, the Board shall hold an appropriate public
hearing to consider the proposed new rates, at which hearing all
parties desiring to be heard, including the grantee, shall be heard
on any matters relating to the performance of this franchise, the
grantee's services, and the proposed new rates.
(3) Within ninety (90) days after said hearing, the Board shall
render a written decision on the grantee's petition, either ac-
cepting, rejecting, or modifying the same and reciting the basis
of its decision.
(4) If the Board fails to act within six (6) months of the grantee's
petition pursuant to paragraph (1) above, the grantee shall there-
after be entitled to put its proposed new rates into effect on a
provisional basis, provided that it shall keep a full and accurate
accounting of all income resulting from said provisional rates and
shall be obliged for a period of six (6) months thereafter to refund
the amount by which said provisional rates exceed the rates ulti-
mately established by the Board. Upon request by the Board the
grantee shall provide a bond or other reasonable surety to ensure
that possible refunds due under this subsection shall be promptly
made. The bond or surety shall be in an amount not to exceed the
difference between the amount of revenues generated in six months
at the previously existing rates and the amount of revenues expected
to be generated in six months at the provisional rates.
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(5) The criteria for the Board's decision in such matters shall be
the establishment of rates which are "fair and reasonable" to both
the grantee and its subscribers and shall be generally defined as
the minimum rates necessary to meet all applicable costs of ser-
vice, including fair return on all invested capital, all assuming
efficient and economical management.
(6) In order for the Board to determine whether proposed rate
changes comport with the criteria established in subsection (5)
above, the grantee's petition for a rate increase shall include the
following financial reports, which shall reflect the operations of
the Wichita Falls system only.
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
4. Statement of Sources and Applications of Funds
5. Detailed Supporting Schedules of Expenses, Income,
Assets and other items as may be required.
6. Statement of Current and Projected Subscribers and
Penetration.
The grantee's accounting records applicable to the Wichita Falls
system shall be available for inspection by the City at all reason-
able times. The City shall have access to records of financial
transactions for the purpose of verifying burden rates or other
indirect costs prorated to the Wichita Falls operation. The docu-
ments listed above shall include sufficient detail and/or footnotes
as may be necessary to provide the City with the information
needed to make accurate determinations as to the financial con-
dition of the system. All financial statements shall be certified
as accurate by an officer of grantee.
(7) Any disagreement between the City and the grantee concerning
interpretations and calculations of the financial and statistical in-
formation provided by the grantee may be submitted to a court of
competent jurisdiction.
SECTION 23 PREFERENTIAL OR DISCRIMINATORY PRACTICES PROHIBITED:
BILLING PRACTICES
(a) The grantee shall not, as to rates, charges, service, services
facilities, rules, regulations, or in any other respect, make or grant
any undue preference or advantage to any party, nor subject any party
to any prejudice or disadvantage. Provided, however, that this section
shall not be deemed to prohibit bona fide promotional activities of the
grantee nor to supplying free service to employees of grantee.
(b) Grantee shall not require payment for services more than ninety
(90) days in advance unless required by the line extension policy.
(c) Any subscription agreement utilized by grantee must first be ap-
proved by the City Attorney.
SECTION 24 TRANSFER OF CONTROL
(a) No transfer of control of the cable system shall take place, whether
by forced or voluntary sale, lease, mortgage, assignment, encumbrance
or any other form of disposition, without prior notice to and approval by
the Board which shall not be unreasonably refused. The notice shall in-
clude full identifying particulars of the proposed transaction, and the
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Board shall act by resolution. The Board shall have sixty days within
which to approve or disapprove a transfer of control, if no action is
taken within such sixty days, approval shall be deemed to have been
given.
(b) The consent or approval of the Board to any assignment, lease,
transfer, sub-lease, or mortgage of the grantee shall not constitute
a waiver or release of the rights of the City in and to the streets.
(c) For the purposes of this section the term "control" is not limited
to majority stock ownership, but includes actual working control in
whatever manner exercised.
(d) A rebuttable presumption that a transfer of control has occurred
shall arise upon the acquisition or accumulation by any person or group
of persons of 10 per cent of the voting shares of the grantee.
(e) A mortgage or pledge of the cable system equipment or any part
thereof or a leasing by a grantee from another person of said cable
system equipment or part thereof for financing purposes or otherwise
shall be made only with prior approval of the Board and shall be sub-
ject and subordinate to the rights of the City under this ordinance or
applicable law.
(f) In the absence of extraordinary circumstances, the Board will not
approve any transfer or assignment of the franchise before completion
of construction of the energized cable.
(g) Subsections (a), (c), (d) and (f) of this section shall not be appli-
cable to the announced merger between the grantee and Time, Incor-
porated, which was submitted as a part of the Ownership section of
the grantee's proposal.
SECTION 25 CITY RIGHTS IN FRANCHISE
(a) In the event that the City terminates this franchise pursuant to ap-
propriate provisions of this ordinance, the City shall have the right to
purchase the cable system at a price not to exceed its then fair market
value. In determining the fair market value of the system, the original
cost of all tangible and intangible property, as well as the salvage value,
the book value, the replacement cost, cash flow, and other factors may
be considered. Under no circumstances shall any valuation be made for
"goodwill" or any right or privilege granted by the franchise.
(b) The Board reserves the right to review the purchase price of any
transfer or assignment of the system, and any assignee to this fran-
chise expressly agrees that any negotiated sale value which the Board
deems unreasonable will not be considered in the rate base for any sub-
sequent request for rate increases. Reasonableness of purchase price
will be determined in accordance with criteria listed in subsection (a).
(c) Continuity of Service Mandatory. It shall be the right of all sub-
scribers to receive all available services 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 terminates or fails to renew this franchise, or the City elects
to purchase the system, the grantee shall do everything in its power
to ensure that all subscribers receive continuous, uninterrupted ser-
vice regardless of circumstances. In the event of purchase by the City,
or a change of grantee, the current grantee shall cooperate with the City
to operate the system for a temporary period in maintaining continuity
of service to all subscribers.
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(d) The right is hereby reserved to the City or the Board to adopt,
in addition to the provisions contained herein and in existing appli-
cable ordinances, such additional regulations as it shall find neces-
sary in 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.
(e) The City shall have the right to inspect the books, records, maps,
plans, income tax returns, and other like materials of the grantee at
any time during normal business hours.
(f) The City shall have the right, during the life of the franchise, to
install and maintain free of charge upon the poles of the grantee any
wire and pole fixtures necessary for a police and fire alarm system,
on the condition that such wire and pole fixtures do not interfere with
the cable television operations of the grantee.
(g) The City shall have the right to make such inspections it shall
find necessary to insure compliance with the terms of the franchise
and other pertinent provisions of law.
(h) At the expiration of the term for which the 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 cable television system from all streets
within the City.
(i) In the event the grantee fails to operate the cable television sys-
tem for five consecutive days without prior approval of the Board,
except for strikes, acts of God, or other circumstances beyond the
control of the grantee, the City or its agent shall have the right to
operate the cable television system until such time that the grantee
again operates the system or until a new operator is selected, in
the event of revocation. If the City is required to fulfill this obli-
gation for the grantee, the grantee shall reimburse the City for any
costs or damages that are the result of the grantee's failure to per-
form.
SECTION 26 REPORTS AND FILINGS
(a) Copies of all petitions, applications, and communications sub-
mitted 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 pursu-
ant to the franchise, shall be made available upon request to the
Board.
(b) The grantee shall file annually with the Chief Accounting Officer
no later than ninety (90) days after the end of the grantee's fiscal
year, a copy of its report to its stockholders (if it prepares such a
report), and income statement applicable to its operations during the
preceding twelve (12) month period, a balance sheet, and a state-
ment of its properties devoted to cable television operations, by
categories, giving its investment in such properties on the basis of
original cost, less applicable depreciation. These reports shall be
certified as correct by an officer of grantee and there shall be sub-
mitted along with them such other reasonable information as the Board
shall request with respect to the grantee's properties and expenses re-
lated to its cable television operations within the City.
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(c) City has right to obtain upon request a current list of its share-
holders and bondholders.
SECTION 27 OPERATIONAL STANDARDS
(a) The grantee shall put, keep, and maintain all parts of the system
in good condition throughout the entire franchise period.
(b) Upon the reasonable request for service by any person located
within the franchise territory, the company shall, within 30 days,
furnish the requested service to such person within terms of the line
extension policy. A request for service shall be unreasonable for the
purpose of this subsection, if occurring within three (3) years from the
effective date of the franchise and no trunk line installation capable of
servicing that person's block has as yet been installed.
(c) The grantee shall render efficient service, make repairs promptly,
and interrupt service only for good cause and for the shortest time
possible. Such interruptions, insofar as possible, shall be preceded
by notice and shall occur during periods of minimum system use.
(d) Grantee shall not allow its cable or other operations to interfere
with television reception of persons not served by grantee, nor shall
the system interfere with, obstruct or hinder in any manner, the oper-
ation of the various utilities serving the residents of the City.
(e) The grantee shall continue, throughout the term of the franchise,
to maintain the technical standards and quality of service set forth in
this ordinance. Should the Board reasonably find, by resolution, that
the grantee has failed to maintain these technical standards and quality
of service, and should it, by resolution, specifically enumerate im-
provements to be made, the grantee shall make such improvements.
Failure to make such improvements within three (3) months of such
resolution shall constitute a breach of a condition for which the remedy
of Section 31 (c) is applicable.
SECTION 28 COMPLAINT PROCEDURE
(a) City Official Responsible. The Office of the City Manager is
designated by the City as having primary responsibility for the con-
tinuing administration of the franchise and implementation of com-
plaint procedures.
(b) Twenty-four Hour Complaint Office. The grantee shall maintain
an office in the City, which shall be open during all usual business
hours, having a publicly listed telephone, and be so operated that
complaints and request for repairs or adjustments may be received
on a 24-hour basis.
(c) Complaint Response. The grantee shall maintain a repair and
maintenance crew capable of responding to subscriber complaints
or request for service within 24 hours after receipt of the complaint or
request. No charge shall be made to the subscriber for this service.
(d) Subscriber Notice of Complaint Procedures. The grantee shall
establish procedures for receiving, acting upon, and resolving sub-
scriber complaints to the satisfaction of the Office of the City Man-
ager. The grantee shall furnish a notice of such procedures to each
subscriber at the time of initial subscription to the system.
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(e) Complaint Records. The grantee shall maintain a written record
or "log", listing date and time of customer complaints, identifying
the subscriber and describing the nature of the complaints and when
and what action was taken by the grantee in response thereto; such
record shall be kept at grantee's local office, reflecting the operations
to date for a period of at least three (3) years, and shall be available
for inspection during regular business hours.
(f) Repetition of Similar Complaints. When there have been similar
complaints made, which, in the judgment of the Office of the City Man-
ager, cast doubt on the reliability or quality of cable service, the Office
of the City Manager shall have the right and authority to compel the
grantee to test, analyze and report on the performance of the system
pursuant to the special testing procedures enumerated in sections
10(b) and 11(b) of this ordinance.
SECTION 29 PAYMENT TO THE CITY
(a) Within one month after its acceptance of the franchise, grantee
shall pay to the City a fee in the amount of twenty-five thousand
dollars ($25,000) for the purpose of partially recovering consulting
fees and expenses incurred in the granting of the franchise.
(b) As compensation for a franchise granted pursuant to this ordin-
ance, and in consideration of permission to use the streets of the city
for the construction, operation, and maintenance of a cable system with-
in the City, the grantee shall pay to the City an amount equal to three per
cent (3%) of grantee's gross annual revenues from all sources attributable
to the operations of grantee within the City. In the event that it is deter-
mined that the FCC lacks the jurisdiction to impose the three (3) per cent
limitation on franchise fees, or that the limit is raised, then the fran-
chise fee shall be subject to renegotiation.
(c) This payment shall be in addition to any other tax or payment
owed to the City by grantee.
(d) The annual fee shall be payable quarterly, to the Finance Office
and the grantee shall file a complete and accurate verified statement
of all gross receipts within the City during the period for which said
quarterly payment is made, and said payment shall be made to the
City no later than fifteen (15) days after the expiration of the quarter
when due.
(e) The City shall have the right to inspect the grantee's income re-
cords, 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 twelve (12) months following the close of each
of the grantee's fiscal years. Any additional amount due to the City as
a result of the audit shall be paid within theirty (30) days following
written notice to the grantee by the City which notice shall include a
copy of the audit report.
(f) In the event that any franchise payment or recomputed amount is
not made on or before the applicable dates heretofore specified, inter-
est shall be charged from such date at the annual rate of 10%.
SECTION 30 FORFEITURE OF FRANCHISE
(a) In addition to all other rights and powers pertaining to the City
by virtue of the franchise or otherwise, the City reserves the right
to terminate and cancel the franchise and all rights and privileges
of the grantee hereunder in the event that the grantee:
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(1) Violates any material provision of the franchise or any
material rule, order, or determination of the City or Board
made pursuant to the franchise, except where such violation
is without fault or through excusable neglect;
(2) Attempts to dispose of any of the facilities or property
of its cable television business to prevent the City from
purchasing same, as provided for herein;
(3) Attempts to evade any material provision of the franchise
or practices any fraud or deceit upon the City;
(4) Fails to begin or complete construction as provided under
the franchise; or
(5) Fails to restore service following 96 consecutive hours of
interrupted service, except when approval of such interruption
is obtained from the Office of the City Manager.
(b) Forfeiture Procedure
(1) The City Manager may make a written demand that the grantee
do or comply with any such provision, rule, order, or determin-
ation. If the violation by the grantee continues for a period of
30 days following such written demand without written proof that
the corrective action has been taken or is being actively and ex-
peditiously pursued, the City Manager may place his request for
termination of the franchise upon the next regular Board meeting
agenda. The City Manager shall cause to be served upon grantee,
at least 10 days prior to the date of such Board meeting, a written
notice of intent to request such termination and the time and place
of the meeting, notice of which shall be published at least 10 days
before such meeting in the official city newspaper.
(2) The Board shall consider the request of the City Manager and
shall hear any person interested therein, and shall determine in
its discretion, whether or not any violation by the grantee was with
just cause.
(3) If such violation by the grantee is found to have been with
just cause, the Board shall direct the grantee to comply there-
with within such time and manner and upon such terms and con-
ditions as are just and reasonable.
(4) If the Board shall determine such violation by the grantee
was without just cause, then the Board may, by resolution, de-
clare that the franchise of the grantee shall be terminated and
forfeited unless there are compliance by the grantee within such
period as the Board may fix.
(c) In the event of said revocation, subject, however, to the provisions
of Section 25(a), the grantee shall have two years from the date on
which it ceases operations to remove, at its own expense, all portions
of its cable television system from all streets within the City and shall
restore said streets to a condition reasonably satisfactory to the City
within such period of time.
SECTION 31 VIOLATIONS
For violation of any of the following provisions of this ordinance, the
penalties shall be chargeable to the Letter of Credit as follows:
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(a) For failure to complete construction and installation of the system
and commence providing service in accordance with Section 6, unless
the Board specifically approves the delay by resolution because of rea-
sons beyond the control of the grantee, grantee shall forfeit two hundred
($200) dollars per day or part thereof that the violation continues.
(b) For failure to provide data and reports as requested by the Board
and as required in Sections 22(c)(6), 26, and 29(e), grantee shall for-
feit fifty dollars ($50) per day or part thereof that the violation con-
tinues.
(c) For failure to comply with the operational standards following the
Board's resolution directing grantee to make improvements pursuant to
Section 27(e), grantee shall forfeit one hundred dollars ($100) per day
or part thereof that the violation continues.
(d) For failure to test, analyze, and report on the performance of the
system following the reasonable request of the Board pursuant to Sec-
tion 10(b), grantee shall forfeit fifty dollars ($50) per day or part
thereof that the violation continues.
(e) For failure to pay the franchise fee when due pursuant to Section 29,
grantee shall forfeit fifty dollars ($50) per day or part thereof that the
violation continues.
(1) For persistent failure to comply with such reasonable requests
and recommendations as may be made by the Board pursuant to au-
thority granted by this ordinance, grantee shall forfeit fifty dollars
($50) per day or part thereof that the violation continues.
(g) In the event that the system fails to meet any operational stan-
dard for a full three month period following the Board's resolution
directing grantee to make improvements pursuant to Section 27, in
addition to the penalty imposed by subsection (c) of this section,
grantee shall reduce all subscriber's fees by twenty-five per cent
(25%) until all operational standards are met.
SECTION 32 FORECLOSURE
Upon the foreclosure or other judicial sale of all or a substantial part
of the system, or upon the termination of any lease covering all or a
substantial part of the system, the grantee shall notify the Board of
such fact, and such notification shall be treated as a notification that
a change in control of the grantee has taken place, and the provisions
of Section 24 of the ordinance, governing the consent of the Board to
such change in control of the grantee, shall apply.
SECTION 33 RECEIVERSHIP
The Board shall have the right to cancel this franchise one hundred
and twenty (120) days after the appointment of a receiver, or trustee,
to take over and conduct the business of the grantee, whether in re-
ceivership, reorganization, bankruptcy, or other action or proceeding,
unless such receivership or trusteeship shall have been vacated P rior
to the expiration of said one hundred and twenty (120) days, or unless:
1. Within one hundred and twenty (120) days after his
election or appointment, such receiver or trustee shall
have fully complied with all the provisions of this ordin-
ance and remedied all defaults thereunder; and,
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2. Such receiver or trustee, within said one hundred
and twenty (120) days shall have executed an agreement,
duly approved by the court having jurisdiction in the pre-
mises, whereby such receiver or trustee assumes and
agrees to be bound by each and every provision of this
ordinance and the franchise granted to the grantee.
SECTION 34 RIGHTS OF INDIVIDUALS
(a) Grantee shall not deny service, deny access, or otherwise dis-
criminate against subscribers, channel users, or general citizens
on the basis of race, color, religion, national origin, or sex. Gran-
tee shall comply at all times with all other applicable federal, state,
city, and county laws, and all executive and administrative orders
relating to nondiscrimination.
(b) Grantee shall strictly adhere to the equal employment opportunity
requirements of the FCC, as expressed in the Cable Television Rules,
47 C.F.R. g 76.311, and as amended from time to time.
(c) Neither the grantee nor the City shall tap or monitor or arrange
for the tapping or monitoring, or permit, either expressly or impliedly,
any other person to tap or monitor any cable, line, signal input device,
or subscriber outlet or receiver for any purpose whatsoever, without
the express permission of the subscriber, provided, however, that the
grantee shall be entitled to conduct system-wide or individually ad-
dressed "sweeps" for the purpose of verifying system integrity, con-
trolling return-path transmission, or billing for pay services.
(d) The grantee shall not, without the specific authorization of the sub-
scriber involved, sell, or otherwise make available to any person, lists
of the names and addresses of such subscriber, or any list which iden-
tifies the viewing habits of any individual subscriber, except as the same
is necessary for the construction, marketing, and maintenance of the
grantee's facilities and services hereunder and the concomitant billing
of subscribers for said services, or as the same may be necessary to
give leased access channel users sufficient and pertinent information
to make full use of said leased access channel. The grantee shall not
provide information concerning the viewing habits of identifiable indi-
vidual subscribers to any person, group or organization for any purpose
whatsoever.
SECTION 35 DURATION AND ACCEPTANCE OF FRANCHISE
The franchise and the rights, privileges and authority hereby granted
shall take effect and be in force from and after final passage thereof,
as provided by law, and shall continue in force and effect for a term of
fifteen (15) years, provided that within fifteen (15) days after the date
of the passage of the franchise the grantee, American Television and
Communications Corporation and Time, Inc. , shall file with the City
Clerk its unconditional acceptance of the franchise and promise to com-
ply with and abide by all its provisions, terms, and conditions. Such
acceptance and promise shall be in writing duly executed and sworn to,
by, or on behalf of the grantee, American Television and Communications
Corporation and Time, Inc. , before a notary public or other officer au-
thorized by law to administer oaths.
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SECTION 36 FRANCHISE RENEWAL
(a) This franchise may be renewed by the Board upon application of
the grantee pursuant to the procedure established in subsection (b) of
this section, and in accordance with the then existing rules of the
Federal Communications Commission and applicable law.
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(b)(1) At least thirteen months prior to the expiration of the fran-
chise, grantee shall inform the Board in writing of its intent to seek
renewal of the franchise.
(b)(2) After giving public notice, the Board shall proceed to deter-
mine whether the operator has satisfactorily performed his obli-
gations under the franchise. To determine satisfactory performance,
the Board shall consider technical developments and performance of
the system, programming, other services offered, cost of services,
and any other particular requirements set in the ordinance; also, the
Board shall consider the grantee's annual reports made to the City
and the FCC; industry performance on a national basis shall be con-
sidered. Provision shall be made for community comment.
(b)(3) A four month period shall be provided to determine the grantee's
eligibility for renewal.
(b)(4) The Board shall then prepare within two months any amend-
ments to the Wichita Falls Cable Television Ordinance that it believes
necessary.
(b)(5) If the Board finds the grantee's performance satisfactory, a
new franchise shall be granted pursuant to the ordinance as amended
for a period of fifteen (15) years.
(b)(6) In the event the current grantee is determined by the Board to
have performed unsatisfactorily, new applicants shall be sought and
evaluated and a franchise award shall be made by the Board accord-
ing to franchising procedures adopted by the Board.
SECTION 37 CITY'S RIGHT OF INTERVENTION
The grantee agrees not to oppose intervention by theCity in any suit
or proceeding to which the grantee is a party.
SECTION 38 FURTHER AGREEMENT AND WAIVER BY GRANTEE
The grantee agrees to abide by all provisions of the franchise, and
further agrees that it will not at any future time set up as against
the City or the Board to claim that the provisions of the franchise
are unreasonable, arbitrary, or void.
SECTION 39 PUBLICATION COSTS
The grantee shall assume the cost of publication of the franchise
as such publication is required by law and such is payable upon
the grantee's filing of acceptance of the franchise.
SECTION 40 OTHER BUSINESS ACTIVITIES
(a) Grantee shall not engage in the business of selling, repairing or
installing television receivers or radio receivers within the City of
Wichita Falls during the term of the franchise. Local shareholders
of grantee owning more than 1% of the grantee's stock shall likewise
not engage in such business.
(b) The franchise authorizes only the operation of a cable television
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 41 THEFT OF SERVICES AND TAMPERING
(a) No person, whether or not a subscriber to the cable system shall
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willfully, maliciously or otherwise damage or cause to be damaged
any wire, cable, conduit, apparatus, or equipment of grantee, or com-
mit any act with intent to cause such damage, or to tap, tamper with or
otherwise connect any wire or device to a wire, cable, conduit, appar-
atus, appurtenance or equipment of grantee with the intent to obtain a
signal or impulse from the cable system without authorization from or
compensation to grantee, or to obtain cable television or other com-
munications service with intent to cheat or defraud grantee of any
lawful charge to which it is entitled.
(b) Whoever shall violate any provision of this section shall be guilty
of a misdemeanor and shall be liable to a penalty of not less than One
Hundred Dollars ($100. 00) for a first offense and not more than Two
Hundred Dollars ($200.00) for a second and every subsequent offense.
The penalties provided in this section shall be enforced by appropriate
proceedings instituted by the City or the grantee.
SECTION 42 SEVERABILITY
If any section, sentence, clause or phrase of the ordinance is held un-
constitutional or otherwise invalid, such infirmity shall not affect the
validity of the ordinance, and any portions in conflict are hereby re-
pealed. Provided, however, that in the event that the Federal Com-
munications Commission declares any section invalid, then such a
section or sections will be renegotiated by the Board and the grantee.
PASSED, APPROVED AND ADOPTED ON THIS THE 3rd DAY OF APRIL, 1978.
� ' <
( MAYOR
ATTEST:
CITY CLERK
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