1978-021AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
AMENDING CHAPTER 27 ENTITLED "CABLE TELEVISION", pROVIDING A
SEVERABILITY CLAUSE AND DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS
SECTION I
The Code of Ordinances of the City of Denton, Texas zs hereby
amended by amending Chapter 2?,Articles I through X entitled "Cable
Television", and shall hereafter read as follows
ARTICLE I
SECTION 27-1 FRANCHISE GRANTED AND LIMITATIONS
The franchise to be granted by the City of Denton pursuant to
th~s ordinance shall grant to the grantee, the r~ght, privilege
and franchise to erect, construct, operate and maintain in, upon,
along, across, above, over and under the streets, alleys, public
ways and public places now laid out or dedicated and all such
extensions thereto and additions thereto ~n the C~ty, and poles,
w~res, cables underground, condu~ts, manholes, and other television
conductors and fixtures necessary for the maintenance and operation
of a CATV system for the interception, sale, transmission and d~s-
tribution of television programs and other aud~o-v~sual electrical
smgnals and the right to transmit the same to the ~nhab~tant~ of
the City on the terms and conditions hereinafter set forth The
C~ty of Denton expressly reserves the r~ght to grant a s~m~lar use
o£ said streets, alleys, public ways and places to any person at
any t~me during the period of th~s franchise It ~s further the
~ntention of this ordinance to limit the activity of a grantee
hereunder solely to the operation of cable television systems w~th-
· n the City of Denton
SECTION 27-2 DURATION OF FRANCHISE GRANT
The term of the franchise to be granted by the C~ty of Denton
pursuant to this ordinance shall be for a per~od of ten (10) years
from and after the grant and acceptance date of the franchise to
be awarded, subject to the conditions and restrictions as herein-
after provided, and further provided that the Mayor and C~ty
Council shall have the right to review such franchise periodically
at such time as the Mayor and City Council may from t~me to t~me
elect to do so and as hereinafter provided
SECTION 27-3 FRANCHISE RIGHTS SUBJECT TO POLICE POWERS
In accepting th~s franchise, the grantee acknowledges that
its rights hereunder are subject to the police power of the C~ty
to adopt and enforce general ordinances necessary to the safety
and welfare of the public, and ~t agrees to comply w~th all appli-
cable general laws and ordinances enacted by the C~ty pursuant to
such power
ARTICLE II
Th~s ordinance shall be known and may be c~ted as the "Denton
Cable Television Ordinance" and ~t shall become a part of the Code
of Ordinances of the City of Denton, Texas, with the following
definitions applicable thereto
DEFINITIONS
SECTION 27-4 AGENCY
Agency means the person, department, or agency designated by
the City Council to act in matters related to CATV
SECTION 27-5 CABLECASTING, ORIGINATION AND ACCESS
Cablecast~ng means prograrmm~ng (exclusive of broadcast signals)
carried on a cable television system
1 Origination Cablecast~ng Programming (exclusive of broad-
cast signals) carried on a cable television system over one or more
channels, and subject to the exclusive control of the cable operator
2 Access Cablecastlng Services provided by a cable tele-
vision system on its public, education, local government, or leased
channels
(a) Public Access Channel
A specially designated non-commercial publmc access
channel avamlable on a first-come non-discrlmmnatory
basis for whmch the system shall maintain and have
available for publmc use at least the mlnmmal eqump-
ment and facllmtIes necessary for the production of
programming for such a channel
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(b) Education Access Channel
A specially designated channel for use by local
educational authorities
(c) Local Government Access Channel
A specially designated channel for local govern-
ment uses
(d) Leased Access Channel
Portions of the system's nonbroadcast bandwidth
including unused portions of the specially desig-
nated channels for leased access services
SECTION 27-6 CATV
Community antenna television system or cable television sys-
tem or CATV system means any facility, the primary function of
which 15 either to receive and amplify the broadcast signals of
one or more television and radio stations or to provide s~gnals
for additional closed circuit programmzng, and to redistribute
such signals to members of the public who subscribe thereto or
to whom redmstributlon of such s~gnals is required by the ordinance,
by means of w~res, cables, conduzts, or any other devices which are
above, below, on, ~n, or along highways or other public places
SECTION 27-7 CERTIFICATE HOLDER
Certificate holder means the person or company awarded a Cer-
tificate of Public Convenience and Necessity for the operation of
a CATV system ~n the C~ty of Denton, the certificate to be awarded
~n accordance w~th the provisions of applzcable law, ~ncludzng this
ordinance
SECTION 27-8 CONVERTER
Converter means an electronic device, which converts signals
to a frequency not susceptible to ~nterference within the television
receiver of a subscriber, and by an appropriate channel selector
also permits a subscriber to vzew all signals delivered at desig-
nated d~al locations
SECTION 27-9 DISTRICT
District means the area w~thln which the cable operator w~ll
provide servlce
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SECTION 27-10 GROSS RECEIPTS, REVENUES, GROSS ANNUAL
RECEIPTS
As compensation for the franchise granted herein and in con-
slderatlon of permission to use the streets and public ways of the
City and the Service Area for the construction, operation, mainten-
ance, and reconstruction of a cable communications system wlthln
the City and Service Area, the grantee shall pay to grantor an
annual amount equal to three (3%) percent of the grantee's gross
annual revenues from all sources attributable to the operations of
the grantee wlthln the City and the Service Area Ail funds re-
ceived pursuant to th~s subsection shall be deposited into the
General Fund of the grantor
SECTION 27-11 PROGRAMMER
Programmer means any person, f~rm, corporation, or entity who
or which produces or otherwise provides program material for trans-
mission by v~deo, audio, digital, or other signals, either live or
from recorded tapes, to subscribers, by means of the cable communi-
cations system
SECTION 27-12 SCHOOL
School means any ~nstitutlon of the Denton Independent School
District, any non-profit day care center, and any other non-profit
educational institution
SECTION 27-13 SERVICE. BASIC AND ADDITIONAL
1 Basic subscriber service means the total of all the follow-
lng
(a) The transmission of all broadcast video channel
signals provided for herein,
(b) The transmission of the public, educational, and
local government access channel signals,
(c) The transmission o£ the local or~gznat~on channel
signals,
(d) The transmisszon of such other cablecast channel
signals as are required by the FCC to match the
number of broadcast channel signals being trans-
mitted, and
(e)The ~nstallat~on and re-connection of subscriber
service outlets
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2 Additional services means any o4 the following
(a) Such v~deo services as the transmission o4
all leased access channel s~gnals not ~n-
cluded in basic subscriber service, as well
as the transmission of cablecast v~deo
advertising messages and pay television
signals
SECTION 27-14 SUBSCRIBER
Subscriber means any person, firm, corporation, or other entity
receivmng for any purpose the servmce o4 the grantee heremn
SECTION 27-15 STREETS AND HIGHWAYS
Streets means streets, avenues, highways, boulevards, concourses,
driveways, bridges, tunnels, parks, parkways, waterways, docks, bulk-
heads, wharves, piers, alleys, all other publmc r~ghts o4 way, and
public grounds or waters wmthin or belongmng to the C~ty
SECTION 27-16 SYSTEM
i System means the broadband communications £acmlmty whzch ms
to be constructed, operated, and mamntamned by the Company w~th~n
the C~ty o4 Denton The system shall have a m~n~mum 20 channel
capacity and provmde at least one channel for composite public,
educatmonal~ local government and leased access use
SECTION 27-17 TWO WAY CAPABILITY
The franchise shall maintain a plant having technical capacity
for non-vomce return con~nunications
SECTION 27-15 USER
User denotes a person or organization utilizing a system channel
for purposes of productmon and/or transmission of mater~al, as con-
trasted with recempt thereof, mn a subscriber capacmty
ARTICLE III
PROVISIONS GOVERNING THE LENGTH, RENEWAL AND
TRANSFER OF A CERTIFICATE OF FRANCHISE
SECTION S?-19 FRANCHISE REQUIRED, DURATION, EXCLUSIVITY
1 The Cmty shall grant a franchmse £or the use of the streets
wmthmn the City for the construction, operatmon, and mamntenance of
a CATV system No system shall be allowed to occupy or use the
streets of the City or be allowed to operate wmthout a CATV fran-
chise
2 The franchise shall be granted for a term of ten (10)
years, thereafter, after full public hearings, and according to
the franchmse renewal procedure that follows, the franchise may be
renewed for perlods of reasonable duration not to exceed ten (10)
years as in the opinion of the City Council will serve the public
mnterest
(a) Procedure to consider franchise renewal
I Thirteen months before expmrat~on of the franchise
the City Council may appoint in the manner provided
for ~n Section 2?-40 (2), a CATV Advisory Board to
review the performance of the franchmsee and the
content of the CATV ordmnance
After giving public not~ce, the Board shall proceed
to determine whether the operator has satisfactorily
performed h~s obligations under the franchise To
determine satisfactory performance, the Board shall
look at the technical developments and performance
of the system, programming, other services offered,
cost of service, and any other particular requirement
set forth in the ordinance, such as the avamlab~l~ty
of programming equipment and personnel to aid access
channel users, also, the Board shall consider the
franchlsee's annual reports made to the C~ty or the
FCC, provision shall be made for community comment,
and ~ndustry performance on a national basis shall
be considered
A four month per~od shall be provmded to determine
the franch~see's eligibility for renewal
The Board shall then prepare amendments to determine
the franchise ordinance that mt believes necessary
5 The Board shall submmt to the C~ty Counczl recommen-
dations in regard to (1) renewal of the franchise,
(2) changes to the franchise, and (3) amendments to
the franchise ordinance
6 If the C~ty Councml f~nds the franchmsee's performance
satisfactory, a new franchise may be granted pursuant
to the ordinance as amended
7 In the event the current franchisee ms determined by
the C~ty Council to have performed unsatlsfactormly,
new applicants shall be sought and evaluated by the
CATV Advisory Board and a franchise award made by the
City Council according to CATV franchising procedures
adopted by the City Council
SECTION 27-20 REEVALUATION
1 The City and the franchisee shall hold scheduled reevalu-
ation sessions within thirty (30) days of the f~fth annmversary
dates of the franchmsee's obtamnlng cert~f~catmon for the system
from the Federal Communmcations Commmssion All such reevaluatmon
sessions shall be open to the public and announced mn a newspaper
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of general circulation at least five (5) days be£ore each session
2 Special reevaluation sessions Special reevaluation ses-
sions may be held at anytime durzng the term of the franchise
All such reevaluation sessions shall be open to the public and
announced in a newspaper of general c~rculat~on at least f~ve (5)
days before each session
S Topics to be reevaluated The following top~cs shall be
d~scussed at every scheduled reevaluation session service rate
structures, free or discounted services, application of new tech-
nology, system performances, services provided, programming offered,
customer complaints, amendments to th~s ordinance, undergroundlng
progress, and judicial and FCC rulings
4 Topics ~n addition to those listed may be added ~f agreed
upon by the parties Members of the general public may add top~cs
e~ther by working through the negotiating part~es or by presenting
a petition If such a petition bears the valid s~gnatures of f~fty
or more residents of the C~ty, the proposed topic or top~cs shall
be added to the list of top~cs to be d~scussed at the reevaluation
session
SECTION 27-21 CANCELLATION AND TERMINATION
i The C~ty Council may cancel the franchise conferred by
this ordinance at any time prior to its expiration date upon a
finding, made after thirty (SO) days not~ce of the proposed can-
cellat~on and public hearing, that the grantee has fa~led to cure
one or more of the following defects during a sixty (00) day per~od
following written notice by the City Manager to the grantee of such
a defect
(a) Material breach, wh&ther by act or omission, of any
terms or conditions of th~s franchise ordinance
(b) Mater~al m~srepresentat~on of fact in the application
for or negotiation of the franchise
(c) Failure to provide subscribers or users with adequate
service ~n the best ~nterest of the public convenience
and welfare
SECTION 27-22 CONTINUITY OF SERVICE
I Continuity of Service Mandatory The grantee shall be
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required to provide continuous service to all subscribers ~n re-
turn for payment of the established fee If the grantee over builds,
rebuilds, modifies or sells the system, or the grantor revokes or
fa~ls to renew this franchise, or grantor elects to purchase the
system, the grantee is required as part of th~s franchise to con-
tinue to operate the system until an orderly change of operation ~s
effectuated In the event the grantee fails to operate the system
for five consecutive days without prior approval of the City Council,
the City or its agent may operate the system until such time that a
new operator is selected
2 Grantor purchase of System upon Revocation In the event
that the grantor revokes this franchise, pursuant to appropriate
provisions of th~s ordinance, the grantor shall have the right to
purchase the CATV system at a price not to exceed ~ts then book
value (that is, original cost of property less accumulated depre-
ciation) The book value shall be determined by the grantor in
accordance with generally accepted appraisal and accounting prin-
ciples Under no circumstances shall any valuation be made for
"good will" or any right or privilege granted by this franchise
Should a dispute arise over the determination of the fair market
value of the system, the dispute shall be resolved by arbitration
as provided an the sections of th~s ordinance entitled "Provision
for Arbitration of Disputes"
4 TRANSFERS AND ASSIGNMENTS
(a) The franchisee operating under this ordinance shall
not be permitted to sell, transfer, or otherwise change more than
ten (10%) percent of the ownership herein granted without prior
written consent of the City of Denton If after f~ve (5) years the
franchisee would consider sale of more than ten (10%) percent or a
transfer o£ control, then provided the transferee met the character
financial, and experience criteria established by the FCC and the
C~ty Council of Denton, the consent of the City Council of Denton
would not be unreasonably withheld
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(b) The franchisee operating under this ordinance shall
not be permitted to sell, lease, sublease, transfer, or otherwise
change working control of the franchise here~n granted without
prior written consent of the City of Denton For the purpose of
determining whether it shall consent to such change transfer, or
acquisition of control, the City Council may inquire into the
prospective controlling party, and the franchisee shall assist the
C~ty Council in any such inqumry If the City Council does not
schedule a hearing on the matter within sixty ($0) days after not~ce
of the change or proposed change and the f~l~nE of a petition re-
questing ~ts consent, the City shall be deemed to have consented
In the event that the City Council adopts a resolution denying ~ts
consent, and such change, transfer, or acquisition of control has
been effected, the C~ty Council may terminate the franchise
(c) The consent or approval of the C~ty Council to any
assignment, lease, transfer, sublease, or mortgage of the franchise
granted to the franchisee shall not constitute a waiver or release
of the rights of the City in and to the streets
(d) In the absence of extraordinary c~rcumstances, the
City Council will not approve the assignment of the franchise by
the franchise prior to completion of construction of the CATV
system
(e) The Council reserves the right to review the purchase
price of any trans£er or assignment of the system, and any assignee
to this franchise expressly agrees that any negotiated sale value
which the Council deems unreasonable w~ll not be considered ~n the
rate base for any subsequent request for rate ~ncreases
ARTICLE IV
FRANCHISE TERRITORY - EXTENSION OF SERVICE
SECTION 27-2S FRANCHISE AREA
Grantee shall submit, in addition to the application for
franchise, a map showing the franchise area and the projected con-
struction completion date The m~p shall clearly delineate any
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areas which will not be served, if any
SECTION 27-24 REVIEW OF FRANCHISE AREA
At two year intervals, beginning the third year after the
franchise is awarded, the map shall be reviewed, and changes in
the service areas shall be incorporated by mutual agreement
I Before requesting extension of service ~nto pre-
viously unserved areas, the C~ty Council must
take into consideration the costs of said exten-
sion, population density and averages, and terrain
problems
2 The review shall take place at a public meeting
SECTION 27-25 ARBITRATION OF DISPUTES
Should the Council and the grantee fall to agree upon new
service areas requested by the Council, the matter shall be arbi-
trated as provided in this ordinance
SECTION 27-26 SERVICE OUTSIDE FRANCHISE AREA
Grantee shall negotiate with any citizen or group of citizens
desiring service who are located outside the servzce area Should
the grantee and such citizens fall to reach an agreement upon the
costs of service to be extended, the matter shall be submitted to
an arbitration board as provided in th~s ordinance
SECTION 27-27 ANNEXATION
Upon the annexation of any new territory by the City of Denton,
the portion of the CATV system that may be located or operated with-
in such territory, and the streets, alleys, or public grounds there-
of, shall thereafter be subject to all the terms of th~s grant as
though it were an extension made thereunder
ARTICLE V
SECTION 27-28 ACCESS PROGRAMMING FACILITIES
All cable system franchises must provide reasonable equipment
to be used by access cablecasters w~th the a~d of a technical and
production staff to be provided by the operator Included should
be equipment that can store programs for later showing In addition,
a centrally located studio must be made available to all access users
on a first-come, first-served basis Any applicant to operate the
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system will be expected to demonstrate in its application how ~t
plans to make available the equipment, the studio, and production
and technical staff Applicants will be given preference in the
selection process for plans that will most adequately meet these
requirements A full schedule of rates for use of equipment,
studio, and technical and production staff must be submitted If
separate rates are planned for mobile facilities, these must be
also included Rate preference may be g~ven to non-commercial users
SECTION 27-29 RUB SYSTEM
The cable system design shall ~ncorporate the use of a HUB
system with sufficient hubs to ~nsure the quality of reception re-
quired by the Federal Communications Commission
The franchisee shall be required to maintain the capability for
non-voice return communications
SECTION 27-30 ENERGENCY OVERRIDE
The cable system shall include an "Emergency Alert" capability
which will permit the mayor, or the mayor's designated represen-
tative, to override, by remote control, the audio and/or video of
all channels Involved in retransm~sslon of television broadcast
programming The cable operator shall designate a channel which wlll
be used for emergency broadcasts
SECTION 27-31 STANDBY POWER
The cable system operator shall maintain equipment capable of
providing standby powering for headend transportation and trunk
amplifiers for a m~nlmum of two hours The equipment shall be con-
structed so as to automatically notify the cable off~ce when it ~s
~n operation and to automatically revert to the standby mode when
the AC power returns Ail utility safety regulations must be fol-
lowed to prevent a standby generator from powering the "dead" util-
ity line, with possible injury to an unwitting l~neman
SECTION 27-32 PRIVACY
1 USE OF DATA FROM SUBSCRIBER
A grantee shall not mnitmate or use any form, procedure, or
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device for procuring information or data from cable subscribers'
premises by use of the cable system without prior valid written
authorization from each subscriber so affected Valid authori-
zation shall mean written approval from the subscriber for a per-
iod of time not to exceed one (1) year, and said authorization
shall not have been obtained from the subscriber as a condition
of service Further, it shall be unlawful for a grantee, without
such authorization, to activate and/or utilize any "Class IV Cable
rslevlslon Channel" in any manner from the subscriber's premises
In any case the subscriber shall have the right and opportunity
to deactivate the return path from his or her premises
2 IDENTIFYING SUBSCRIBERS
The City or a grantee shall not, w~thout prior valid written
authorization from each subscriber so affected, provide any data
· dentif¥inE subscribers' names or address to any other party
3 PROCUREMENT OF INFORMATION
It shall be unlawful for any f~rm, person, group, company,
corporation, governmental body, or agency to procure ~nformatlon
or data from cable subscribers' premises by use of the cable sys-
tem without prior written authorization from each subscriber so
affected Valid authorization shall mean written approval from a
subscriber for a period of t~me not to exceed one (1) year and
shall not have been obtained as a condition of the grantee pro-
vid~ng cable service to the subscriber
4 SPECIFIC AUTHORIZATION
No authorization for procurement or dlsslmlnatlon of sub-
scriber identifiable ~nformation or data shall be valid unless
~t (1) specifies the type or types of ~nformatlon or data covered,
and (2) the part~es authorized to collect, receive, store, record,
transmit, or otherwise convey th~s ~nformat~on or data Further,
all authorizations shall specify the maximum period of t~me that
any subscriber identifiable ~nformatlon or data shall be preserved
· n any manner or form
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5 SUBSCRIBER COPY REQUIRED
A written copy of all subscriber ldentmflable lnformatmon or
data which is retamned and/or dmsclosed and the dmspositlon of
this information or data, together with any explanation necessary
to make it understandable to the subscriber, shall be provided to
the affected subscrmber wmthin thmrty (30) days of procurement
Further disclosures shall be fully detamled mn wrztmng to the
affected subscriber within thirty (30) days of such disclosure
SECTION 27-33 ANTENNA SWITCH FOR ALTERNATIVE USE OF
OFF-AIR ANTENNAS
Grantee shall install an RF switch upon request by a subscriber
ARTICLE VI
TECHNICAL STANDARDS & SPECIFICATIONS
SECTION 27-34
Methods of constructmon, installatmon, and mamntenance of the
City's cable television system shall comply wmth the Natmonal Elec-
trmcal Safety Code, National Electrical Code of 1975, National
Bureau of Standards Handbook 81 (Part 2), National Bureau of Stan-
dards, U S Department of Commerce November l, 1961, to the extent
that such Codes are consmstent with local law affectmng the construc-
tmon, installation, and maintenance of electrmc supply and communm-
cations lines To the extent that such Code ms mnconsistent with
other provisions of this franchise or with local law, the latter
shall govern
SECTION 27-35
Any tower constructed for use mn the City's cable televmsmon
system shall comply with the standards contamned mn Structural
Standards for Steel Antenna Towers and Antenna Supporting Structures~
EIA Standards RS-222-A as published by the Engmneermng Department of
the Electronic Industries Assocmation, 2001 Eye Street, N W Washing-
ton, D C. 20006
SECTION 27-36
Installation and physical d~menslons of any tower constructed
for use in the C~ty's cable televxsmon system shall comply w~th all
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appropriate Federal Avzatlon Agency regulatmons zncludlng, but not
llmzted to, Objectives Affecting Navzgable Azrspace, 14 C F R 77 1
et seq , February, 1965
SECTION 27-37
Any antenna structure used in the Czty's cable telev~smon sys-
tem shall comply wmth Constructmon Markzng, and Lighting of Antenna
Structure, 47 C F R 17 I et seq , September, 1967
SECTION 27-38
All working facllztzes and condztzons used durzng constructzon,
installation, and mazntenance of the C~ty's cable televzslon system
shall comply with the standards of the Occupatzonal Safety and Health
Adminlstratzon
SECTION 27-39
The Company shall comply fully with the rules and standards for
cable televzsion operations as adopted by the Federal Communmcatlons
Commission 47 C F R 76 601-76 613 (1972)
SECTION 27-40
The Company shall comply fully with the rules and regulations
contained and promulgated wlthzn thms ordmnance and all other Czty
ordznances which apply to the operation of the cable system
SECTION 27-41
Stray radlatzon (Rf leakage) shall be checked at receptzon
locations for emergency radio services to prove no interference
szgnal combmnatzons are possible Stray radzatzon shall be measured
adjacent to any proposed aeronautzcal navigation radio s~tes to
prove no interference to airborne navigational reception ~n the
normal flight patterns
ARTICLE VII
LOCAL REGULATORY FRAMEWORK AND REGULATIONS
SECTION 27-42 REMEDIES FOR BREACHES
i In the event that its service to any subscriber is inter-
rupted for twenty-four (24) consecutive hours, except for acts of
God, and except in circumstances for which the prior approval of
the ~nterruption ~s obtained from the City Council, grantee shall
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provide a ten (10%) percent rebate of the monthly fees to affected
subscriber
2 In the event that its service to any subscriber is inter-
rupted for forty-eight (48) or more consecutive hours, except for
acts of God, and except ~n circumstances for which the prior approval
of the interruption is obtained from the City Council, grantee shall
provide a twenty (20%) percent rebate of the monthly fees to affected
subscribers
3 In the event that its service to any subscriber is inter-
rupted for seventy-two (72) or more consecutive hours, except for
acts of God, and except in circumstances for which the prior approval
of the interruption is obtained from the City Council, grantee shall
provide a hundred percent (100%) rebate of the monthly fees to the
affected subscribers
SECTION 27-43 SECURITY FUND
1 Within ten (lO) days after the effective date of th~s con-
tract, the Company shall deposit with the Finance D~rector, and
maintain on deposit through the term of this contract, the sum of
$ Dollars in monies or securlties~ as security for the
faithful performance by it of all the provisions of this contract,
and compliance with all orders, permits and directions of any agency
of the C~ty having jurisdiction over ~ts acts or defaults under this
contract, and the payment by the Company of any claims, liens and
taxes due the City which ar~se by reason of the construction, opera-
tlon or maintenance of the system
2 Within ten (10) days after notice to ~t that any amount has
been withdrawn from the security fund deposited pursuant to sub-
d~v~sion (1) of this section, the Company shall pay to or deposit
with, the F~nance Director a sum of money or securities sufficient
to restore such security fund to the original amount of $
Dollars
3 If the Company fails to pay to the City any compensation
within the time f~xed herein, or, falls, after ten (10) days notice
to repay to the City any taxes due and unpaid, or, falls to repay
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to the City, within ten (10) days~ any damages, costs, or expenses
which the City shall be compelled to pay by reason o£ any act or de-
fault of the Company in connection w~th th~s franchise, or, £alls~
after three (3) days not~ce of such £allure by the C~ty Manager,
to comply with any provision of this contract which the City Mana-
ger reasonably determines can be remedied by an expenditure of the
security, the Flnance Director may ~mmedlately withdraw the amount
thereof, with interest and any penalties, from the security £und
Upon such w~thdrawal, the Finance Director shall not~fy the Company
of the amount and date thereof
4 The security fund deposited pursuant to th~s Section shall
become the property of the City in the event that th~s contract ~s
cancelled by reason of the default of the Company The Company,
however, shall be entitled to the return of such security fund, or
port~on thereof, as remains on deposit with the Finance Dzrector at
the expiration of the term of th~s contract, provided that there is
then no,outstand~nE default on the part of the Company
8 The r~ghts reserved to the C~ty w~th respect to the security
fund are in addition to all other r~ghts of the C~ty whether reserved
by this contract or authorized by law, and no action, proceeding or
exercise of a riEht w~th respect to such security £und shall ~ffect
any other right the City may have
SECTION ~?-~4 CONSTRUCTION TIMETABLES
i Service shall be made available to seventy (?0%) percent
of the C~ty within three (3) years o~ the date of the cert~£1cate
and n~nety (~0) percent of the City w~th~n four (4) years of the
date of certificate Upon the reasonable request for service by
any person located within the C~ty, the company shall, w~th~n s~xty
(80) days, £urnlsh service to such person A request £or service
shall be unreasonable £or the purpose of th~s subd~v~szon, zf
occurr~E within f~ve (8) years from the effective date o~ the
certificate and no trunk line installation capable of serv~c~nE
that person's block has as yet been Installed, or, ~f occurring at
any t~me and direct access cannot be obtained to such person's
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premises and all other means of access are highly impracticable
SECTION 2?-45 FORECLOSURE, RECEIVERSHIP
1 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 Company
shall notify the City of such fact, and such notification shall be
treated as a notification that a change in control of the Company
has taken place, and the requirements of th~s ordinance governing
the consent of the City Council to such change in control of the
Company shall apply
2 The City Council shall have the r~ght to cancel the fran-
chise one hundred twenty (120) days after the appointment of a
receiver, or trustee, to take over and conduct the business of the
company, whether in receivership, reorganization, bankruptcy, or
other action or proceeding, unless such receivership or trusteeshmp
shall have been vacated prior to the expiration of the sa~d one hun-
dred twenty (120) days, or unless
(a) W~thin one hundred twenty (120) days after hms
election or appointment, such receiver or trustee
shall have fully compiled with all the provisions
of this ordinance and remedied all defaults there-
under, and,
(b) Such receiver or trustee, within sa~d one hundred
twenty (120) days shall have executed an agreement,
duly approved by the Court having jur~sdmctlon in
the matter, whereby such receiver or trustee assumes
and agrees to be bound by each and every provision
of this ordinance and the certificate granted to the
company
SECTION 27-46 ESTABLISHMENT OF A REGULATORY ENTITY
1 Continuing Regulatory Jurisdiction The City shall have
contlnumng regulatory jurisdictmon and supervmslon over the opera-
tmon of any franchise granted hereunder and may from tmme to tmme
adopt such reasonable rules and regulatmons as they may deem neces-
sary for the conduct of the business contemplated thereunder
2 Authority to establish CATV Advisory Board The contmnumng
regulatory jurisdmctlon of the City shall be exercised by the City
of Denton City Council The Clty Councml shall have the authority
to establish and appoint a CATV Advisory Board consmstlng of fmve
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(5) members who shall serve for three (S) year terms with such terms
to be staggered Such Board's duration shall be at the pleasure of
the Council and should such board be established ~t shall advise
the City Council on its regulatory jurisdiction and may have the
following responsibilities and duties at the d~rect~on of the City
Council
(a) Resolving disputes or disagreements between sub-
scribers and the grantee after an ~nvestigation
should the subscriber and the grantee not first
be able to resolve their v~ew or d~saEreement
Sa~d decision or findings may be appealed to the
City Council
(b) Reviewing and auditing all reports and f~linEs
submitted to the City as required hereunder and
such other correspondence as may be submztted
to the City concerning the operation of the
cable television network, and reviewing the rules
and regulations set by the grantee company
(c) Assuring that all tariffs, rates, and rules per-
t~nent to the operation of the CATV system In the
City of Denton are made available for ~nspect~on
by the public at reasonable hours and upon reason-
able requests
(d) Reviewing rates and recommending any rate chan~es
to the C~ty Council
SECTION 27-47 PROCEDURE FOR ANY DAY TO DAY REGULATION
i Any formal ~nquiry, proceeding, investigation, or other
formal action to be taken or proposed to be taken by the C~ty
Council in regard to the operations of the company's cable tele-
vision system, including action in regard to an increase in sub-
scr~ptlon rates, shall be taken only after thirty (30) days public
not~ce of such action or proposed action ~s published in a local
daily or weekly newspaper having general c~rculat~on in the C~ty
of Denton, a copy of such action or proposed action ~s served
directly on the company, and the company has been g~ven an oppor-
tunity to respond in writing and/or a hearing as may be specified
by the City Council, and general members of the public have been
given an opportunity to respond or comment ~n writing on the action
or proposed action
2 The public notice required by th~s action shall state
clearly the action or proposed action to be taken, the time pro-
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vided for response and the person or persons and authority to whom
such responses should be addressed, and such other procedures as
may be specified by the CATV Advisory Board If a hearing 1s to
held, ~ public participation will be allowed The grantee ~s
a necessary party to any hearing conducted ~n regard to th~s
operation
SECTION 2?-45 FUNCTIONS TO BE REGULATED
I A franchisee shall maintain an off~ce in the City, which
shall be open during all usual business hours, have a publmcly
l~sted telephone, and be so operated that complaints and requests
for repairs or adjustments may be received on a twenty-four (24)
hour basis
2 A franchisee shall maintain a repair and trouble-shooting
force capable of responding to subscriber complaints or requests
for service within twenty-~our (24) hours after receipt of the com-
plaint or request No direct charge shall be made to the subscriber
for this service
SECTION 27-49 SUBSCRIBER COMPLAINT PROCEDURE
I Subscriber Not~ce of Complaint Procedures The £ranch~see
shall establish procedures for receiving, acting upon, and resolving
subscribSr complaints to the satisfaction of the Council The
franchisee shall furnish a notice of such procedures to each sub-
scriber at the t~me of ~nitial subscription to the system
2 Complaint Records The franchisee shall maintain a written
record or "log", listing date and time of customer complaints, iden-
tifying the subscriber and describing the nature of the complaints
and when and what action was taken by the franchisee in response
thereto, such record shall be kept at franch~see's local off~ce,
reflecting the operations to date for a period of at least three
(S) years, and shall be available for ~nspect~on during regular
bus~ness hours wmthout further notice or demand by the Council
S Repetition of Similar Complaints When there have been
similar complaints made or where there exists other evidence, which,
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in the judgment of the Council casts doubt on the relmabllmty or
quality of cable servmce, the Council shall have the rmght and
authormty to compel the franchmsee 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 he delivered to
the C~ty no later than 14 days after the City formally notifmes
the franchisee Such report shall mnclude the following infor-
mation
(a) The nature of the complamnt which precmp~tated
the special tests
(b) What system component was tested
(c) The equipment used and procedures employed
in said testing
(d)The method mn which such complaints were
re~oEded
Any other information pertinent to the specmal test shall be re-
corded
Said tests and analyses shall be supervised by a professmonal
engmneer, not on the permanent staff of the franchmsee The afore-
said engineer should sign all records of special tests and forward
to the City such records with a report ~nterpretmng the results of
the tests and recommending actions to be taken by the City
The City's right under this provlsmon shall be lmmlted to re-
quiring tests, analyses, and reports covering specmflc subjects
and characteristics based on said complamnts or other evmdence when
and under such circumstances as the C~ty has reasonable grounds to
belmeve that the complaints or other evmdence require that tests
be performed to protect the public against substandard cable ser-
vice
SECTION 27-50 EMPLOYMENT REQUIREMENTS
A franchisee shall not deny service, deny access, or other-
wmse discriminate agamnst subscribers, channel users, or general
citizens on the basis of race, color, religion, natmonal origin,
or sex A franchmsee shall strmctly adhere to the equal employ-
ment opportunity requmrements of the FCC, as expressed mn Sectmon
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76 13 (h) and 76 311 of Chapter 1 of Title 47 of the Code of
Federal Regulations The franchisee shall comply at all times with
all other applicable federal, state, city, and county laws, and all
executive and administrative orders relating to non-dlscrlm~natlon
A franchisee shall make a positive effort to h~re racial minorities,
women and other protected groups as subcontractor ~f available and
qualified
SECTION 27-51 FRANCHISE FEES
The grantee shall pay, as compensation to the C~ty, an annual
fee of three (3%) percent of its gross revenues
SECTION 27-52 RATES
1 The ~niIial rates will be established through competitive
b~dding of the applicants Once an applicant is selected and awarded
a franchise, such rates shall become the applicable rate structure
and shall be adopted by ordinance Such rates shall remazn in effect
and not be changed for a minimum period of two (2) years after the
award of the franchise
2 Absent actions reassigning 3urlsdlctlon for Basic Sub-
scriber Service rates to some other authority, sa~d rates shall be
subject to modification only by the Council and only in accordance
with the following procedures
(a) The Company may petition the Council for a change
in rates by filing a revised rate schedule ~n-
eluding ~ts 3ust~f~cation(s) for sa~d proposed
new schedule
(b) Wlthin ten (10) days of notification by the
Council of the place and time establzshed for
a hearing on said petition, the Company shall
notify its subscribers of the same day 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
Following all proper notice, but ~n no event
later than ninety (90) days from the date of
said petition, the Council shall hold an
appropriate public hearing to consider the
proposed new rates, at which hearing all par-
ties desiring to be heard, including the Com-
pany, shall be heard on any matters relating
to the performance of this franchise, the
Company's services, and the proposed new rates
(c) Within ninety (90) days after sa~d hearing, the
Council shall render a written decision on the
Company's petition, e~ther accepting, rejecting,
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or modifying the same and reciting the basis
of its decision
(d) If the Council fails to act wlthln slx (6)
months of the Company's petition pursuant to
paragraph (a) above, the Company shall there-
after be entitled to put its proposed new
rates into effect on a provisional basis, pro-
vided that ~t shall keep a full and accurate
accounting of all income resulting from said
provisional rates and shall be obliged for a
period of up to six (6) months thereafter to
refund the amount by which said provisional
rates exceed the rates ultimately established
by the Council Upon request by the Council
the Company shall provide a bond or other rea-
sonable surety to ensure that possible refunds
due under this subsection shall be promptly
made The bond or surety shall be ~n an amount
not to exceed the d~fference between the amount
of revenues generated in slx months at the pre-
viously existing rates and the amount of reve-
nues expected to be generated ~n slx months at
the provisional rates
(e) The criteria for the Council dec~slon ~n such
matters shall be establishment of rates which
are "fair and reasonable" to both the Company
and its subscribers and shall be generally de-
fined as the minimum rates necessary to meet
all applicable cost of service, including fair
return on all invested capital, all assuming
efficient and economical management
(f) In order for the Council to determine whether
proposed rate changes comport w~th the criteria
established in subsection (e) above, the Com-
pany's petition for a rate ~ncrease shall in-
clude the following f~nanc~al reports, which
shall reflect the operations of the Denton sys-
tem only
i Balance Sheet
2 Income Statement
S Cash Flow Statement
4 Statement of Sources & Applications
of funds
5 Detailed Supporting Schedules of
Expenses, Income, Assets & Other
Items as may be required
6 Statement of Current ~ Projected
Subscribers & Penetration
The franchlsee's accounting records applicable to
system shall be available for ~nspect~on by the
City at all reasonable times The City shall have
access to records of financial transactions for the
purpose of verifying burden rate? or other indirect
costs prorated to the Denton 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 f~nanclal condition of the
system All financial statements shall be certified
as accurate by an officer of franchisee
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(g) Any disagreement between the City and the Com-
pany concerning interpretation and calculations
of the financial and statistical ~n£ormat~on
provided by the Company may be submitted to
arbitration at the request of e~ther party pur-
suant to the provisions of Article IX F~nal
decisions concerning rate ~ncreases or decreases
shall not be subject to arbitration
SECTION 27-53 USER CLASSES & DIVISIONS
D~vls~on of users and subscribers and the classes FOR purposes
or rates
SubsGribers may be divided into commercial and residential
classes Nothing in this provision shall prohibit the reduction or
waiving of charges ~n conjunction with promotional campaigns for
the purpose of attracting subscribers Rates for commercial and
non-commercial users of access channels may be established sepa-
rately ~othing herein shall prohibit preferential rates for non-
commercial users ~f approved by the C~ty
SECTION 27-54 ADVANCE CHARGES & DEPOSITS
A fr~nchise may require subscribers to pay for each month of
basic serMice in advance at the beginning of each month No other
advance payment or deposit of any k~nd shall be required by fran-
chisee for basic subscrmber service No deposit or advance pay-
ment of a~y kind shall be charged for the provision of any conver-
ter without prior approval of the City Nothing ~n th~s provision
shall be construed to prohibit charges or waiver of charges for ~n~-
rial ~nst~llation or reconnect~on
SECTION 27-55 INSTALLATION & RECONNECTION
Except as otherwise provided elsewhere ~n this ordinance, a
franchise9 may make a charge to subscribers for the installation
of service outlets and for the reconnection of service outlets
The rateslfor such connection or reconnectlon shall be authorized
by the City as provided ~n th~s Article
SECTION 27-56 DISCONNECTION
There shall be no charge for disconnection of any lnstallatlon
or outlet If any subscriber falls to pay a properly due monthly
subscriber fee, or any other properly due fee or charge, the fran-
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chisee may disconnect the subscribers service outlet, provided,
however, that such disconnection shall not be effected until thirty
(30) days after the due date of said delinquent fee or charge and
shall include ten (10) days written not~ce of the ~ntent to dis-
connect delivered to the subscriber in question If a subscriber
pays thirty (30) days after payment is due and after not~ce of dis-
connection has been given, a franchisee shall not d~sconnect After
d~sconnectlon, upon payment in full of the delinquent fee or charge
the payment of reconnection charge, a franchisee shall promptly re-
instate a subscribers cable service
SECTION 27-57 RECORDS & REPORTS, NOTICE OF DOCUMENTS FILED WITH AGENCY
i ANNUAL REPORTS
No later than March 31 of each year, a franchisee shall submit
a written report to the City, in a form d~rected by the C~ty Council,
which shall ~nclude
(a) A summary of the previous year activities and deve.
lopment of this system, including, but not'limited to,
services begun or dropped, subscribers gain or loss
(b) Copies of the financial statements audited by a cer-
tified public accounting firm acceptable and approved
by the City, including the franchIsee's balance sheet,
income statement, and working papers relating to sub-
scriber accounts
(c) A current statement of costs of construction by com-
ponent categories
(d) A summary of complaints, Identifying the number and
nature of complaints and their disposition
(e) A l~st of officers and members of the board of the
franchisee and the parent corporation, if any
(£) A list of all stockholders holding three (3%) percent
or mere of the voting stock of a franchisee and the
parent corporation, if any
2 FILINGS WITH FEDERAL COMMUNICATION
Copies of all petitions, f~l~ngs, reports, and correspondence
filed with the Federal Communication Commission will be f~led concur-
rently with the City
SECTION 27-58 INSURANCE & INDEMNIFICATION
I A grantee or franchisee seeking to operate under the auth-
ority of this ordinance shall prior to the granting of a franchise
for cable television operation by the City of Denton submit to
approval by the City Attorney satisfactory evzdence zn the form of
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certificates of insurance or their equzvzlant including but not
limited to the following coverage and risk areas
(a) Workman's Compensation and employee's liability
coverage on all employees of the franchisee as
required by statute
(b) Comprehensive general liability coverage ~nclud-
lng a blanket contractual liability provision
and a broad form damage endorsement covering but
not limited to explosion, collapse or other under-
ground activity
(c) Comprehensive automobile liability coverage
2 The minimum limits of coverage on each of the above described
coverages excepting l(a) above shall ~n no event be less than One
Million ($1,000,000 00) Dollars
3 All insurance policies required by this section shall be so
endorsed as to make the City of Denton a named insured under such
policy
Further, each policy shall be so endorsed as to require the
carrier or carriers to give not less than sixty (60) days not,ce of
cancellation or non-renewal to the City of Denton Such policies
shall further carry an endorsement providing a waiver of any rights
of subrogation in the favor of and to the City of Denton
4 A grantee or franchisee operating under authority of th~s
ordinance shall hold harmless from and indemnify the City against
all claims, suits, actions, costs, counsel fees, expenses, damages,
judgments or decrees by reason of any person or persons or property
being damaged or injured by the franchisee or any of his subcon-
tractors, employees, agents, vendors, suppliers, or any capacity
during the progress of the work, whether by negligence or otherwise
Such indemnification provisions shall be a part of the franchisee
agreement
5 A grantee or franchisee hereunder shall upon written notice
thereof by the City Manager or his designee indemnify the City of
Denton for any damage of any nature to property of the City of
Denton whether real, personal or mixed
SECTION 27-59 USE OF PUBLIC PROPERTY & CONDITIONS FOR USE
i A grantee shall first obtain the approval of the City prior
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to commencing construction on the streets, alleys, public grounds,
or places of the City Applications for approval of the construction
shall be in a form provided by the City A grantee shall give the
City written notice of proposed construction at least ten days prior
to such construction so as to coordinate all work between the City
and grantee
2 A grantee shall not open or disturb the surface of any street,
s~dewalk, driveway, or public place for any purpose without first hav-
ing obtained a permit to do so in a manner provided by City ordinances
S A grantee shall, at its expense, protect, support, temporarily
disconnect, relocate In the same street or other public place, or re-
move from the street or other public place, any property of the grantee
when required by the City of Denton by reason of traffic conditions,
public safety, street vacation, ~treet construction, change of estab-
lishment of street grade, installation of sewer, drains, water p~pes,
C~ty owned power or s~gnal lights, and tracks or any other type of
structure or improvement by public agency
4 The grantee's use of existing poles or conduits belonging to
the C~ty of Denton, or the erection or construction of new poles or
conduits shall be governed by a separate Pole Use Agreement
5 All wires, conduits, cables and other property and facili-
ties of the grantee shall be so located, constructed, ~nstalled and
maintained as not to endanger or unnecessarily interfere with the
usual and customary trade, traffic and travel upon the streets of
public places of the City The grantee shall keep accurate maps and
records of all its facilities and furnish cop~es of such maps and re-
cords as requested by the City A grantee shall not place poles or
other equipment where they will interfere with the rights or reason-
able convenience of adjoining property owners, or w~th any gas, elec-
tric, or telephone f~xtures, or with any water hydrants or mains
All poles or other fixtures placed in a street shall be placed in the
r~ght of way between the roadway and the property, as specified by the
C~ty
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6 All wires, cables, amplifiers, and other property shall
be constructed and installed in an orderly and workman like manner
All cables and wires shall be installed parallel with existing tele-
phone and electric wires whenever possible Multiple cable config-
urations shall be arranged in parallel and bundled, w~th due respect
for engineering and sa£ety consideration All Installations shall
be underground in those areas of the City where public utilitie~
providing either telephone or electric service are underground In
areas where both telephone and electric utility facilities are above
ground at the time of installation, the grantee may ~nstall zts ser-
vice above ground with the understanding that at such t~me as those
facilities are required to be placed underground by the City, the
grantee shall l~kewlse place ~ts service underground w~thout addi-
tional cost to the residents of the C~ty other than as may be
granted under the provisions of this ordinance
7 The City shall g~ve the grantee reasonable notice of plans
for street improvement where paving or resurfaclng of a permanent
nature is involved The notice shall g~ve the grantee suffIcient
time to make any additions, alterations, or repairs to its facilities
as it deems necessary in advance of the actual commencement of the
work, so as to permit the grantee to maintain continuity of service
8 Requests for Removal or Change The grantee shall, on the
request of any person holding a building moving permit, temporarily
raise or lower ~ts wires to permit the moving of sa~d bu~llng The
expense o~ such temporary removal, raising or lowering of wires shall
be paid by the person requesting the same, and the grantee shall have
the authority to require such payment zn advance
9 Authority to Trim Trees The grantee shall have the auth-
ority to trim trees overhanging upon streets, alleys, sidewalks,
and other public places of the City so as to prevent the branches
of such trees from coming in contact w~th the w~res and cables of
the company All tr~r~ning is to be done under the supervision and
direction of the City and at the expense of the grantee The grantee
shall make every effort to preserve the esthetic beauty and v~ablllty
-27-
of any trees trimmed The grantee may contract for such services,
however, any £1rm or Individual so retained shall receive C~ty
approval prior to commencing such activity
l0 Free Connections for Public Buildings Public buildings
should be connected to the cable system at no charge Such requests
for service would be ~nlt~ated by authorized local government offi-
cials For planning purposes, one service drop per facility should
be anticipated at the C~vic Center, C~ty Hall, the County Courthouse,
Police and Flre fac~l~tles~ public Llbrary~ all public and parochial
schools If more than one drop zs required (per facility), the
charge should be based on company's costs of time and materials No
monthly charges should be made for providing basic subscriber services
at these public buildings
ll Free Connections to North Texas State University and Texas
Womans University Upon the request of an authorized University
official, academic buildings and residence halls at North Texas State
University and Texas Womans University should be connected to the
cable system at no charge If more than one service drop is required
(per bulldlng), the charge should be based on the company's cost of
time and materials No monthly charges should be made for providing
basic subscriber services at the academic build,rigs
12 Interconnection The grantee may be required to inter-
connect its system w~th all other broadband communications facilities
Such ~nterconnectlon shall be made within the time l~m~t established
by the City The lnterconnectlon shall, at the City's discretion,
be accomplished according to the method and technical standards
determined by the C~ty, ~n a manner consistent w~th applicable FCC
standards
13 At the expiration of the franchise term, or upon its ter-
mination as provlded for here~n, the Czty shall have the right to
require the grantee to remove at ~ts own expense all portions of
the cable televlsmon system from all streets within the C~ty
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ARTICLE VIII
APPLICANT SELECTION PROCESS
SECTION 27-60 WRITTEN APPLICATION REQUIRED
No license, franchmse, or renewal thereof shall be issued ex-
cept upon wrmtten applmcation to the City Council on an application
form prescribed by the City Council Such form shall contain such
Information as the Cmty Councml may prescribe as to the cmtlzenshmp
and character of the applmcant, and the fmnanc~al technical and
other qualificatmon of the applmcant to operate the system, complete
mnformatmon as to its principals and ultmmate benefmcmal owners,
~ncluding, in the case of corporatmons, all stockholders, both
nominal and beneficial, owning one (1%) percent or more of the
· ssued and outstandmng stock, and, in the case of incorporated
associations, all members and ultmmate benefmcmal owners, however
designated, complete mnformatmon on the extent and the qualmty of
service, number of channels, hours of operatmon, varmety of pro-
grams, local coverage, safety measures, mnstallation and subscrlp-
tmon fees, and such other mnformatlon as the Cmty Councml may deem
approprmate or necessary Such applmcatmon shall be s~gned by the
applicant or by a duly authormzed representatmve, evmdence of whose
authority shall be submitted wmth the appllcatmon Each applicant
shall make full dmsclosure of the true ownership of the applmcant
and of the equipment to be employed and rendermng service and of
the source of funds for the purchase, lease, rental and lnstallatmon
of such equipment Each applmcant shall set forth as completely
as possible the equzpment to be employed, the routes of the wzres
and cables, the area or areas to be served, the approxzmate start-
lng and completion dates of construction of the system and the dates
service will actually be available to the areas named
SECTION 27-61 PUBLICATION OF APPLICANTS FOR FRANCHISE
The Czty Council shall after the last date f~xed for recezpt
o£ the appllcatmons caused to be published ~n the local newspapers
of general cmrculatmon a notice of public hearing, gmvzng the time,
date, places of said hearings, and lzstlng the names of the appli-
cants and invitzng public examznatmon of the applicant and the
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applications, and inviting testimony on the qualifications of sa~d
applicants
SECTION 2?-62 PUBLIC HEARINGS
Public hearings shall be conducted ~n accordance with standards
of due process in fairness to applicants and the public, and in
accordance with the FCC rules and regulations and orders and pol~czes
pertinent to such hearing Each applicant w~ll be notified of the
time and location o£ his application to be considered
ARTICLE IX
PROVISION FOR ARBITRATION OF DISPUTES
SECTION 27-63 BOARD OF ARBITRATION
Any controversy or claim or d~sputes as to facts arising out
of or relating to th~s franchise agreement, or to a breach or
alleged breach thereof, and expressly made the subject of arbitra-
tion by this ordinance, shall be referred to a Board of Arbitrat~on
one member to be appointed by the £ranch~see and the second member
to be appointed by the City Council, and the third member to be a
disinterested party appointed by agreement of the other two members
SECTION 27-64 DEMAND FOR ARBITRATION
Demand for arbitration may be made by e~ther party on the
other by written notice sent by Certified Mai1, Return Receipt
Requested Not~ce of demand to the City of Denton shall be served
on the City Secretary Not,ce of demand to the franchisee shall be
served upon the President of the franchisee corporation The demand
shall state the controversy or claim and the d~sputes as to facts
SECTION 27-65 JUDICIAL RELIEF FOR PARTIES
On failure of e~ther party to appoint an arbitrator within
f~fteen (15) days of not,ce to h~m of demand for arbitration, or on
the failure of arbitrators selected by the parties w~thln f~fteen
(15) days after appointment of both arbitrators to select a third
arbitrator, either party may apply to the District Court of Denton
County, Texas for the appointment of an arbitrator or arbitrators
hereunder by giving notice to the other party, as provided in the
Texas Rules of C~vil Procedure, as amended, governing c~v~l actions
generally
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SECTION 27-66 BOARD OF ARBITRATION HEARINGS
The Board of Arbitrators shall hold a hearing on the contro-
versy, claim or disputes of facts stated in the demand for arbi-
tration, which hearing shall be within thirty (30) days after
appointment of all the arbitrators, and after fifteen (15) days'
notice thereof to both parties given by the arbitrators by Certi-
fied Mail, Return Receipt Requested The hearing may be adjourned
from t~me to time The board shall consider evidence offered by
the parties relevant to the controversy, claim or disputed facts,
and may swear witnesses Testimony shall be taken and transcribed
by a reporter The record of the hearings, the decision of the
Board of Arbitrators, and the dissent of any one of them shall be
f~led with the C~ty Council The dec~slon of the Board of Arbitra-
tors may be rendered by any two of them, and any one of them may
render a d~ssent The decision and d~ssent must be limited to the
controversy or claim and based on f~ndlngs of fact The decision
of any two of the arbitrators shall be the decision of the board
and shall be final and conclusive on both parties
SECTION 27-67 EXPENSES OF ARBITRATION TAXED
Expenses of arbitration, ~ncludlng, without limitation, costs
of notices and service thereof, fees of arbitrators and of w~t-
nesses, but not of legal counsel, and the cost of taking and tran-
scribing testimony shall be charged against the party at fault or
proportionately between the part~es as the board may deem equitable
and just
ARTICLE IX
MISCELLANEOUS
If any section, sentence, clause or phrase of this ordinance
is held unconstitutional or void, such unconstitutionality or
voidness shall not affect the validity of the remainder of the
ordinance, and any portions ~n conflict are hereby repealed Pro-
vided, however, that in the event that the Federal Communications
Commission declares any section znval~d, that such section or
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sections will be reneEotlated by the City Council and the grantee
SECTION II
That this ordinance shall become effective fourteen (14) days
from the date of its passage, and the City Secretary of the City of
Denton, Texas, is hereby directed to cause the caption of th~s ordin-
ance to be published twice in the Denton Record-Chronicle, the off~-
czal newspaper of the City of Denton, Texas, w~thin ten (10) days
of the date of its passage
PASSED AND APPROVED this the ~"~ //~
day of
!
1978
ATTEST
~~ARY
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM
PAUL C ISHAM, CITY ATTORNEY
CITY OF DENTON, TEXAS
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AN ORDINANCE OF THE CITY OF DENTON, TEXAS, G~ANTING TO GOLDEN TRIANGLE
COMMUNICATIONS, A PARTNERSHIp OF SUBSIDIARIES OF DENTON PUBLISHING
COMPANY AND COX CABLE COMMUNICATIONS, INC OF ATLANTA, GEORGIA, THEIR
SUCCESSORS AND ASSIGNS, A P~ANCHISE TO ERECT, MAINTAIN AND OPERATE A
CABLE T~LEVISION SYST~, ITS STRUCTURES AND APPURTENANCES THERETO, IN,
OVER, UNDER, ALONG AND ACROSS THE PUBLIC STREETS, HIGHWAYS, ALLEYS,
BRIDGES AND 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-
VIDING RULES GOVERNING TItE OPERATION OF THE SYSTEM, PROVIDING FOR A
SEVERABILITY CLAUSE; AND DECLARING AN EFFECTIVE DATE
WHEREA~, the City of Denton, Texas enacted Ordinance No 78-21
"Cable Television" on May 2, 1978, which sets out definlt~ons, pro-
visions governlng the length, renewal and transfer of a certifIcate
of f~anchlse, franchise territory; technical standards and specifi-
cations; local regulatory framework and regulations, provIsIon for
arb~tratzon of disputes, and other matters; and
WHEREAS, the City of Denton, Texa~ prepared a "Request for Cable
Television Proposals" and an "Application for Cable TelevIsion System
Franchise" for the awardlng of a franchise, and
WHEREAS, two proposals were received by the City of Denton, and
WHEREAS, the Clty adminlstratlve staff, the CATV advisory board,
and the City Council, wlth the help of the Cable Televlslon Information
Center, evaluated the two appllcations and held several public hearings
affording due process to all involved, and
WHEREAS, Golden Trlangle Communications submltted a proposal for
such franchise and the Clty of Denton desires to award the franchise
to them, and
W~EREAS, sald franchlse shall be in accordance with Federal Com-
munIcations Commlss~on rules and regulatIons and City Ordinance No
78-21,
NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY
ORDAINS
PART I.
Section 1
subject to the terms and conditions mentioned in th~s ordinance
and the Droviszons of Ordinance No 78-21 "Cable Television" and aT
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 Communlcat~ons, Inc of Atlanta,
Georgia, hereinafter calle~ "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 ~nterception, sale,
transmission and d~stribution 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 th~s franchise, up to and ~n-
cluding the year 1990, a s~m of money to be known as a street and
public way rental charge which shall be equivalent to three (3%)
percent of the gross annual revenues from ail 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, ~ncludlng expressly, w~thout
limitatzon, 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 Tr~-
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--
Secretary a sworn report qhow%ng 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 publzc 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 foregoing 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 zts cable television system in
accordance with the provisions and requirements of Sectzon 27-59 of
Ordinance No. 78-21.
SECTION 4.
NO EXCLUSIVE PRIVILEGES CONFERRED BY THIS ORDINANCE. That
nothing herein contaIned shall be construed as glvzng to Golden
Triangle any exclusive przvileges.
--3--
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 Ks
existenoe and enjoyed by Golden Triangle, Golden Triangle shall
dem~ify and hold harmless the City from any and all claims for losses,
damages and lnJurles occasioned to or sustained by any persons, farms,
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-
vlded.
SECTION 7.
DELEGATION OF AUTHORITY That the City may delegate to a desig-
nated official or offlclals the exercise of any and all of the powers
conferred upon the City hereby or by applicable State statutes and
law whlch 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. Ail 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 an-
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-
S CTION 8.
RATE REGULATION. That it is mutually understood and agreed that
the regulation of rates to be charged by Golden Triangle to the
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 m~nlmum per~od 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 Tr~-
angle, consider the fair return on invested capital by usln~ calcu-
lations for the cost of capital for Cox Communications, Inc of Atlanta,
Georgia rather than the cost of capital for Golden Triangle Communi-
cations0
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 th~s ordinance
SECTION 10
CONDITIONS The terms of this franchise shall be as set forth
· n 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
Off~ce and is available for inspection during normal business hours,
provided, however, that if any part of sa~d application is found by
the Federal Communications Commission to be inconsistent with their
rules and regulations, such rules and regulations shall prevail
SECTION 11.
S=VERAEILITY. Each section of this ordinance and each part ~f
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, s~ll not effect any other section or part
of section of this ordinance.
S T ON 12.
ACCEPTANCE OF AGRE~ENT. That Golden Triangle Comun~catlons
shall have thirty (30) days from and after the passage and approval
of thzs ordinance to f~le its mitten acceptance thereof with the
City Secretly, a~ to pay to the C~ty of Denton a ibp sum fee of
$10,000 to p~tially cover expenses that the City has incurred in
preparing, revlewlng and a~rding this franchise. Once the accept-
ance Ns been filed and the fee pa~d, this ordinance shall take
effect and be in force from and after the date of its pas~ge, and
shall effectuate and ~ke b~nd~g the agreement by the terms hereof
PA$S~ AND APPROVED on first reading th~s 19~ day of Dece~er,
A. D. 1978.
PASS~ AND ~PROVED on second reading this ~day of January,
A. D. 1979
~TY OF DFNTON, TEXAS
ATTEST $
~BROOKS IHOLT, CITY SECRETARY
CITY OF DENTON, TEX~S
APPROVED AS TO LEGAL FORM:
PAq3L C . ISHAM , CITY ATTORNEY
CITY OF DENTON, TEXAS