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HomeMy WebLinkAbout1979-001NO AN ORDINANCE OF THE CITY OF DENTON, TEXAS, GRANTING TO GOLDEN TRIANGLE COMMUNICATIONS, A PARTNERSHIP OF SUBSIDIARIES OF DENTON PUBLISHING COMPANY NA COX CABLE COMMUNICATIONS, INC OF ATLANTA, GEORGIA, THEIR SUCCESSO S AND ASSIGNS, A FRANCHISE TO ERECT, MAINTAIN AND OPERATE A CABLE TE 9VISION SYSTEM, ITS STRUCTURES AND APPURTENANCES THERETO, IN, OVER, UN ER, ALONG AND ACROSS THE PUBLIC STREETS, HIGHWAYS, ALLEYS, BRIDGES ND OTHER PUBLIC WAYS AND PLACES IN THE CITY OF DENTON; ESTAB- LISHING RATES TO SUBSCRIBERS AND PAYMENT TO THE CITY, ESTABLISHING CONDITIONS FOR THE USE OF THE STREETS AND OTHER PUBLIC PROPERTY, PRO- VI,DINtz RULES GOVERNING THE OPERATION OF THE SYSTEM, PROVIDING FOR A giVERABILITY CLAUSE; AND DECLARING AN EFFECTIVE DATE WHEREAS, the City of Denton, Texas enacted Ordinance No 78-21 "Cable Television" on May 2, 1978, which sets out definitions, pro- visions governing the length, renewal and transfer of a certificate of franchise, franchise territory, technical standards and specifi- cations] local regulatory framework and regulations, provision for arbitration of disputes, and other matters, and WHEREAS, the City of Denton, Texas prepared a "Request for Cable Television Proposals" and an "Application for Cable Television System Franchise" for the awarding of a franchise, and WHEREAS, two proposals were received by the City of Denton, and WHEREAS, the City administrative staff, the CATV advisory board, and the City Council, with the help of the Cable Television Information Center, evaluated the two applications and held several public hearings affording due process to all involved, and WHEREAS, Golden Triangle Communications submitted a proposal for such franchise and the City of Denton desires to award the franchise to them,iand WHEREAS, said franchise shall be in accordance with Federal Com- municatins Commission rules and regulations and City Ordinance No 78-21; NOW4 THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS PART I -I Section 1. SubDect to the terms and conditions mentioned in this ordinance and the provisions of Ordinance No. 78-21 "Cable Television" and any amendments thereto, which is incorporated herein and made a part of this franchise ordinance as If set out fully herein, the City of Denton, Texas, hereinafter called "City" hereby grants to Golden Triangle Communications, a partnership of subsidiaries of Denton Publishing Company and Cox Cable Communications, Inc of Atlanta, Georgia, hereinafter called "Golden Triangle", its successors, lessees and assigns, consent to use the present and future streets, alleys, highways, bridges, public places, public thoroughfares and grounds of the City for the purpose of erecting, laying, maintaining, and operating therein and thereon poles, towers, anchors, wires, cables, electronic conductors, conduits, manholes, and all other pertinent equipment needed and necessary for the maintenance and operation of a cable television system for the interception, sale, transmission and distribution of television programs and other audio-visual electrical signals and the right to transmit the same to the inhabitants of the City for a term of ten (10) years from the effective date of this ordinance SECTION 2 Company agrees to pay and City agrees to accept, on or before the 31st day of March, 1980, and on or before the same day of each succeeding year during the life of this franchise, up to and in- cluding the year 1990, a sum of money to be known as a street and public way rental charge which shall be equivalent to three (38) percent of the gross annual revenues from all sources attributable to the operations of the grantee within the City and the Service Area, which annual payment shall be for the rights and privileges herein granted to Golden Triangle, including expressly, without limitation, the rights to use the streets, alleys and public ways of said City It is also understood and agreed that during the life of this franchise the above charge, measured in the manner hereinabove provided, shall be the entire and maximum charge which the City shall be entitled to make for the use of the streets, alleys and public ways In order to determine the gross receipts received by Golden Tri- angle, Golden Triangle agrees that on the same date that payments are made as provided in this section, it will file with the City -2- u Secretary a sworn report showing the gross annual revenues from all sources attributable to the operations within said City limits for the calendar year preceding the date of payments City may, if it sees fit, have the books and records of Golden Triangle examined by a representative of said City or independent public auditor employed by the City to audit the same to ascertain the correctness of the sworn reports agreed to be filed herein That the City agrees that the consideration set forth in the preceding section hereof shall be paid and received in lieu of any tax, license, charge, fee, street or alley rental or any other character of charge for use and occupancy of the streets, alleys, and public places of the City, in lieu of any pole tax or inspection fee tax, in lieu of any easement or franchise tax, whether levied as an ad valorem, special, or other character of tax, and in lieu of any imposition other than the usual general or special ad valorem taxes now or hereafter levied Should the City not have the legal power to agree that the payment of the foregoinq cash consideration shall be in lieu of the taxes, licenses, charges, fees, rentals, and easement or franchise taxes aforesaid, then the City agrees that it will apply so much of said payment as may be necessary to the satis- faction of Golden Triangle's obligations, if any, to pay any such taxes, licenses, charges, fees, rentals, and easement or franchise taxes SECTION 3 USE OF PUBLIC PROPERTY AND CONDITIONS OF USE Golden Triangle shall use the public streets and property of the City in order to build, construct, renew or maintain its cable television system in accordance with the provisions and requirements of Section 27-59 of Ordinance No 78-21 SECTION 4 NO EXCLUSIVE PRIVILEGES CONFERRED BY THIS ORDINANCE That nothing herein contained shall be construed as giving to Golden Triangle any exclusive privileges -3- SECTION 5 SUCCESSORS AND ASSIGNS That the rights, powers, limitations, duties and restrictions herein provided for shall inure to and be binding upon the parties hereto and upon their respective successors and assigns SECTION 6 LIABILITY OF CITY That during the period this ordinance is in existence and enjoyed by Golden Triangle, Golden Triangle shall in- demnify and hold harmless the City from any and all claims for losses, damages and injuries occasioned to or sustained by any persons, firms, or corporations, or their property by reason of the existence, main- tenance, operation or continuance of this ordinance and the exercise of all rights herein contracted for, except as herein otherwise pro- vided SECTION 7 DELEGATION OF AUTHORITY That the City may delegate to a desig- nated official or officials the exercise of any and all of the powers conferred upon the City hereby or by applicable State statutes and law which relate to the supervision and regulation of a cable tele- vision company in its exercise of the rights and franchises herein conferred, but the governing body of the City shall reserve to itself exclusively and to the full extent possessed, all powers, if any, to fix and regulate charges and rates of Golden Triangle given the City by law and this franchise All lawful powers not delegated by the governing body of the City are reserved to, and shall be exercised by, said governing body exclusively That at all reasonable times, during the continuance of the rights herein granted, the general offices of Golden Triangle shall be open to the said governing body or its designated official for in- spection of original contracts, books of account and cost operating records pertaining to its operations covered by this franchise Any method of accounting heretofore or hereafter adopted or authorized by any law of the United States or of the State of Texas or under or pursuant to the authority of any such law shall be deemed proper and sufficient accounting as to all matters covered thereby -4- SECTION 8 RATE REGULATION That it is mutually understood and agreed that the regulation of rates to be charged by Golden Triangle to the in- habitants of the City is pursuant to Section 27-52 of Ordinance No 78-21 of the City of Denton The initial rates to be charged by Golden Triangle are attached to this ordinance as Exhibit "A" and are incorporated herein and made a part of this ordinance Such rates shall remain in effect and not be changed for a minimum period of two (2) years after the award of the franchise It is also mutually understood and agreed that the City of Denton may, when considering a revised rate schedule submitted by Golden Tri- angle, consider the fair return on invested capital by using calcu- lations for the cost of capital for Cox Communications, Inc of Atlanta, Georgia rather than the cost of capital for Golden Triangle Communi- cations SECTION 9 CONSTRUCTION TIMETABLE Although Section 27-44 of Ordinance No 78-21 sets out the construction timetables for servicing the City of Denton with cable television service, it is mutually understood and agreed that Golden Triangle will make the service available to the en- tire City within fourteen (14) months from the date of this ordinance SECTION 10. CONDITIONS The terms of this franchise shall be as set forth in the Charter of the City of Denton, in ordinance No 78-21 passed by the City Council May 21, 1978, applicable Federal law and regula- tions, and the franchise application submitted by Golden Triangle on September 29, 1978, a copy of which is on file in the City Secretary's Office and is available for inspection during normal business hours, provided, however, that if any part of said application is found by the Federal Communications Commission to be inconsistent with their rules and regulations, such rules and regulations shall prevail SECTION 11 SEVERABILITY Each section of this ordinance and each part of each section hereof is hereby declared to be an independent section -5- or part of section, and the holding of any section or part there- of to be unconstitutional, void, illegal, ineffective or contrary to law for any reason, shall not effect any other section or part of section of this ordinance SECTION 12 ACCEPTANCE OF AGREEMENT That Golden Triangle Communications shall have thirty (30) days from and after the passage and approval of this ordinance to file its written acceptance thereof with the City Secretary, and to pay to the City of Denton a lump sum fee of $10,000 to partially cover expenses that the City has incurred in preparing, reviewing and awarding this franchise Once the accept- ance has been filed and the fee paid, this ordinance shall take effect and be in force from and after the date of its passage, and shall effectuate and make binding the agreement by the terms hereof PASSED AND APPROVED on first reading this 19th day of December, A D 1978. PASSED AND APPROVED on second reading this 4 Oday of January, A D 1979 ATTEST: RRMKS HOLT, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM. PAUL C ISHAI M, CITY AT RNRY' CITY OF DENTON, TEXAS rV70FCDENTON, TEXAS aHE mc EXHIBIT A PROPOSED RATES Rate Schedule All rates initially proposed in applicant's proposal must be substantiated in the financial pro forma state- ments by use of realistic levels of penetration Initial rates shall remain in effect for a minimum period of two years from the date of providing service to the first subscriber List below proposed rates to be charged for basic subscriber services, commercial rates, PROPOSED RATES OFFER BY APPLICANT multiple dwelling, etc INSTALLATION MONTHLY A Basic CATV Service First outlet $15 00* $7 50 Each additional outlet 7 50 2 00 Moving and/or reconnection 10 00 B Commercial Rates (more than 12 units in one location) 1 Using existing master TV system first outlet cost + 7 50 each additional outlet cost + 3 00 (see note 1) -OR- 2 Where no existing master negotiation 4 00 TV system w/building 3 00 owner (see note 2) 3 Miscellaneous charges reconnect (per unit) $10 00 move connection within unit 10 00 C FM Rates Installation (FM only) 15 00 5 00 Installation w/cable ser 2 00 *Subscriber installation charges may be waived during the 12 month period following commencement of service Note 1 Individual billing for each unit Note 2 Compositebilling for all units OTHER RATES If deposit is required for converter, state amount and describe conditions relating to ownership, use and replacement No Deposit Required Detail proposed rates that will be charged for Pay TV, including any charges for equipment installation There are three different Pay TV channels proposed for the City The channels and proposed rates * are as follows Home Box Office $6 95/month Fanfare $8 95/month Family Theatre $4 00/month The following installation rates are proposed to be effective when CATV subscribers wish to add the pay service to their existing service Home Box Office $10 00 Fanfare $10 00 Family Theatre $ 5 00 Pay TV installation fees are waived when a subscriber pur- chases the pay service at the same time as the CATV service * It is mutually understood and agreed that the pay TV rates are on a per subscriber basis, and not a per outlet basis OTHER RATES Detail studio and equipment usage rates Noncommercial users (public access, governmental, non-profit groups, etc ) Access users may reserve the studio and facilities for one half hour free of charge This half hour may be used for setup, lighting, rehearsal, etc When actual taping begins, the first five minutes of the program are free of charge Thus, access users who produce a finished tape with a running time no longer - 2- than five minutes, within the initial half hour, will do so at no cost Users who produce a tape within the initial half hour with a running time longer than five minutes will be charged fifty cents ($ 50) per minute for each minute recorded beyond the first five minutes As the length of studio and video tape time increases, sixty minutes, ninety minutes, etc , the charges gradually increase accordingly and reach a high of one dollar ($1 00) per minute These costs and examples of different situations are spelled our in detail in our Policies and Procedures and we refer you to this section for more in-depth information Commercial users Commercial firms desiring to use the system's color studio for television production purposes may do so at an hourly rate of $100 00 This charge includes full facilities, director and crew Describe rates for governmental and educational facilities (See also instructions to applicants ) Installation fees No Charge One cable outlet (per facility) No Charge More than one outlet (per facility) Cost of time and materials only Monthly Charges None Describe advertising rates Rather than copying the advertising rate methods historically employed by television and radio stations Golden Triangle Communications would prefer a realistic and relatively simple -3- advertising rate structure The below listed rates do not contain involved frequency discount formulas, special pro- visions for fixed adjacencies or other charges for run of schedule announcements The Company wishes to make a fair return on it's programming by providing the entire Denton business community an opportunity to sponsor community programming The rate schedule proposed is one that a small businessman can both afford and comprehend Only by involving a broad cross-section of local advertisers will local programming become self-sustaining 60 Second Announcements $10 50 Discounts 10 announcements per month - 10% 20 announcements per month - 15% Describe leased channel rates Noncommercial 30 Second Announcements $6 00 A total of 2 channels have initially been set aside for leased access purposes It is the intention of Golden Triangle to make these channels available on a first -come, first -serve basis Qualified non -commerical users will be provided access to either full-time or shared channels at no cost Two-way circuits and service will be available to government agencies, educational, medical and other institutions via the Denton system's Special Services Network Cable There will be no cost to the institutions for use of this two-way video/ audio link Commercial At the present time, there is little experience within the cable television industry concerning the use of leased channels for such purposes as digital transmission meter reading, sub- scriber polling, etc The leased channel rate will be determined -4- in part by the extent of the system's involvement through additional equipment and manpower These variables make it impossible to predetermine rates or project revenues for leased channels at this time Rates will be fair and conpen- satory to the system A low lease tariff that does not re- flect the true value of the channel creates a situation where the system's basic cable subscribers are in effect subsidizing a leased channel business Golden Triangle will make every effort to assist in the development of sound, productive uses of the cable system's leased channel capacity by local businesses and other groups The Company believes proper utilization of the system's leased channels to be an important community service As a result Golden Triangle will be extremely flexible in its policies so as to encourage full use of these channels New approaches, experimentation and trial and error will all be necessary be- fore these channels can become significant factors in the community or viable business enterprises State any other rates anticipated but not mentioned above N/A -5- ACCEPTANCE OF FRANCHISE Golden Triangle Communications, a partnership of Golden Triangle Communications, Inc and Cox Cable of Texas, Inc (these companies being wholly -owned subsidiaries of Denton Publishing Company and Cox Cable Communications, Inc , respectively) hereby accepts the franchise granted to it under Ordinance No 79-1 to erect, maintain and operate a cable television system within the City of Denton for a term of ten (10) years Golden Triangle Communications further accepts the cable television Ordinance and all the terms, conditions and pro- visions incorporated by means of Ordinance No 78-21 and agrees to abide by, observe and perform all the terms, con- ditions and provisions of said Ordinances Golden Triangle Communications hereby declares that the statements and recitals set forth in said Ordinances are correct and Golden Triangle does hereby make all of the agreements, statements and admissions required by the terms of and under the Ordinances The undersigned affiants assert that they are officers of Golden Triangle Communications, Inc and Cox Cable of Texas, Inc and are authorized to execute this acceptance on behalf of the Partnership IN WITNESS WHEREOF, Golden Triangle Communications has caused this acceptance to be executed the 18th day of January, 1979 PARTNER PARTNER Golden TrAiangle Communications, Inc Cox Cable of Texas, Inc By Roy Appleton, Jr Vice President �i 50Vj By WIn APitney— Vice President President Notarp Public Not Iry I i My Commi- -I ` J t io KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON 0 WHEREAS, Golden Triangle Communications has.been awarded a cable television franchise for the City of Denton, Texas; and WHEREAS, City of Denton Ordinance No. 78-21, Section 27-43 requires Golden Triangle Communications to deposit $30,000 in monies or securities, as securityfor the faithful performance by it of all the provisions of the franchise ordinance; and WHEREAS, Golden Triangle Communications, Party of the First Part, has deposited with the First State Bank of Denton, Texas, Party of the Second Part, the sum of $30,000 to serve.as the. security fund. NOW, THEREFORE, Party of the First Part agrees that said sum will be held on account with the Party of the Second Part for the use and benefit of the City of Denton under the follow- ing conditions: Golden--Triangle-Communications fail-s-to-pay-to-the__ _ City of Denton any compensation due the City within a time period fixed by City of Denton Ordinance No. 78-21; or,.fails,'after ten (10) days notice to repay to the City any taxes due and unpaid; or, fails to repay to the City, within ten (lb) days, any damages, costs, or expenses which the City shall be compelled to pay by reason of any act or default of ,the Company in connection with the cable television; or, fails, after three (3) days notice of such failure by the City Manager, to comply with any provision of the franchise ordinance which the City Manager reasonably determines can be remedied by an expenditure -of -the-secur.ity;,-the= Director --,}- -- -- of Finance will notify in writing the Party of the Second Part of the monies due the City of Denton, with interest and any penalties accrued thereon, and the Party of the Second Part will immediately pay such.sum to the City of Denton. 2. Party of_the Second Part will give written notice to the Party of the First Part that an amount has been paid to the City of- -Denton from this fund, and within ten (10) days after notice to 4. Party of the First Part will be entitled to any interest which may accrue on the fund provided that the fund balance is $30,000 at the time that the interest is payable. 5. It is agreed that this deposit agreement is made for the -convenience of the Party of the First Part, that the City of Denton could require such fund_to be_deposited Nv.i.th_it.,_and-P-ar_t.y_of.-_the - -- Second Part will not withhold funds to the City of Denton when re- quested to pay same to the City of Denton by its Director of Finance. Both Party of the First Part and City of Denton shall hold Party of the Second Part harmless for paying any funds to the City of Denton pursuant to this agreement and City of Denton Ordin- ance No. 78-21. WITNESS our hands this the /2 t( day of February, A. D. 1979. ACCEPTED: CITY OF DENTON, TEXAS BY: L WILLIAM MCNARY ` DIRECTOR OF FINANCE FIRSTSS/T��A E BANK OF DENTON BY- RODiER BLY, PRESIDF,NT -2-