OR 206 Cablevision of Coppell, Inc. ORDINANCE NO. 206
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, GRANTING A
FRANCHISE TO CABLEVISION OF COPPELL, INC., ITS SUCCESSORS AND ASSIGNS,
TO CONSTRUCT, OPERATE AND MAINTAIN A CABLE TELEVISION SYSTEM IN THE
CITY OF COPPELL, TEXAS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS:
SECTION h DEFINITIONS
CITY: Shall mean the City of Coppe]l, a municipal corporation in the State of Texas.
CITY COUNCIL: Shall mean the City Council of the City of Coppell, Texas.
FCC: Shall mean the Federal Communication Commission, Washington, D.C.
CABLE TELEVISION SYSTEM: Shall mean the facilities and equipment that receives
directly or indirectly over the air and amplifies or otherwise modifies the signals,
transmitting programs b.oadcast by one or more television stations or radio stations,
and receives or originates other non-broadcast signals and distributes such signals by
wire or cable to subscribing members of the general public who pay for such service.
FRANCHISE: Shall mean and include any authorization granted in terms of a license,
privilege. permit, or otherwise, to build, operate and maintain a Cable Television System
in the City.
GRANTEE: Shall mean the person, firm or corporation to whom or which a franchise
as berein defined, is granted by the City Council under this ordinance, and the ]awful
successor, transferee or assignee of said person, firm or corDoration.
STREET: Shall mean the surface, the air space above the surface add the area below
the surface of any public street, alley, public utility easement, or other public
rights-of-way or public places.
SUBSCRIBER: Shall mean any person or entity receiving for any ~)urpese a Cable
Television System service of the grantee hereunder.
PREMIUM CHANNEL AND/OR PREMIUM PROGRAM: Shall mean an auxiliary service
offered on one or more channels by protected transmission techniclues for which
subscribers desiring such service pay extra fees on a per channel or on a per program
basis.
OTHER UTILITIES: Shah mean any other public utility furnishing utility services within
the City.
SECTION 2. GRANT OF FRANCHISE
There is hereby granted to Cablevision of Coppell, Inc., hereinafter called ,
"Grantee", the right and privilege to construct, erect, maintain and operate towers,
poles, wires, anchors, cables, manholes, conduits and other electronic ecluipment along,
across, on, over, through, above and under the public streets, avenues, aJ]eys, roads
and highways in the City, for the purpose of operating a cable television system to
serve the citizens of the City. Such grant being only to the extent tbat the City
may lawfully permit such use of the above described properties, onl~ for the purposes
enumerated and only to the extent that such use will not interfere with the use of
such properties by the City, the public and other public utilities furnishing utility
services within the City. City acknowledges receipt of Grantee's $],000.00 filing fee
as required by Ordinance No. ~92A.
SECTION 3. TERRITORIAL AREA INVOLVED
This franchise shah cover the territorial limits of the City and any area henceforth
added to the City during the term of this franchise.
SECTION 4. FRANCHISE TERM
This franchise shah take effect from and after passage of this ordinance,
subject to acceptance by Grantee as herein provided, and the same shall continue in
full force and effect for a term of fifteen (]5) years, beginnin~ with the date of such
acceptance; provided, however, should FCC certification be necessary prior to imp]e-
mentation of the cable television service contemplated under the franchise, then the
term shall begin upon the effective date of the grant by the FCC of the necessary
certification.
SECTION 5. RENEWAL PROCEDURE
Grantee shah have the option to renew this franchise for an additional period
not to exceed fifteen (15) years. Should Grantee exercise this option, it shall so notify
the City, in writing, not less than three (3) months prior to expiration of this franchise.
Upon exercise of this option by Grantee, the City shall conduct a public hearinff upon
prior notice and opportunity of all interested parties to be heard. The renewal
proceeding shall be held for the purpose of considerinff Grsntee's performance under
this franchise in order to determine whether to renew this franchise. Renewal shah
not be unreasonably denied and shall be granted unless Grantee is found, after hearing,
to be in material and continuing default under the provisions of this franchise and to
be unqualified to continue operation of this cable television system. If this franchise
is renewed by the City, aH of the terms and provisions contained herein shah be
controlling during the renewal period, except to the extent that said terms and provisions
are modified with the mutual consent and agreement of the parties. Should the City,
for any reason be unable to complete the renewal proceedin~ prior to the expiration
of the cable television system pursuant to the terms of the franchise until such time
as the renewal of the franchise is approved or denied. If renewal is denied, such denial
shall be accompanied by a written statement setting forth tbe reasons for the denial.
Furthermore, in the event that the City denies renewal, Grantee shall be afforded a
period of six (6) months following denial within which to sell, transfer or convey said
cable television system, including the franchise, to a qualified purchaser to whom the
City would renew the franchise. During this six-month period, which shah run from
the effective date of the final order or decision denyin~ renewal, Grantee shall have
the right to operate said cable television system pursuant to the terms of this franchise.
SECTION 6. FRANCHISE FEES
Grantee shall pay the City a quarterly franchise fee equal to three percent
of gross quarterly receipts and said fee shah be paid within thirty (30) days after the
end of each calendar quarter. The City shah have the right to inspect the Grantee's
records during normal business hours showing the gross subscribers receipts from which
the franchise fees are computed. Grantee shall furnish City a gross receipts statement
prepared and signed by a certified public accountant within sixty (60) days after the
close of Grantee's fiscal year. As a result of this final statement, adjustments shah
be made by either the City or the Grantee to the c{uarterly amounts paid d1~ring the
preceding year.
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SECTION 7. TRANSFERS
Grantee shall not sell or transfer any right or privilege under this franchise to
another except with written approval of the Cit~v Council. However, such approval
shall not be unreasonably withheld provided the proposed transferee meets financial,
personal and experience qualifications set forth by the Cit~V.This section shall not
prevent the assignment of the franchise by Grantee as security7 for debt. Transfers
or assignments of the franchise between the parent add any suhsidiar.v corporation or
between entities of which at least fifty-one percent ~51%) of the beneficial ownership
is held by the same person, persons or entities shall be permitted without prior approval
of the City.
SECTION 8. INDEMNIFICATION AND INSURANCE
The Grantee shall, at all times during the existence of this franchise, carr.v and
require its contractors to carry insurance as follows:
(a) Workmen's Compensation Insurance in accordance with the laws of the State
of Texas.
(b) Public Liability Insurance, with limits in the amount of $300,000.00 for each
person, $900,000.00 for each accident, and $300,000.00 property damage liabilit.v. In
case the City is impleaded in any suit by reasonof any alleged accident or omission
of the Grantee, its successors or assigns, the City shall be entitled to judgment over
and against the Grantee, its successors nr assigns, in such amount as ms.V be obtained
against the City, b~V reason thereof, provided due written notice is ~iven the Grantee,
its successors or assigns, on the filing of said suit, so that proper defense ma.v be
made to said action or suit.
(c) The Grantee shall defend the City a~alnst all lawful claims for injury to
any person or property caused by the negligence of the Grantee in the construction
or operation of its property; and in the event of a determination of liability shall
indemnify the City; more particularly the Grantee herein, its successors and assigns,
does hereby agree to indemnify and hold harmless the City from any and all liability,
claim, demand or judgment growing out of any injury to any person or property as a
result of the violation or failure on the part of the Grantee, its successors and assigns,
to observe their proper duty or because of negligence in whole or in part arising ont
of construction, repair, extension, maintenance, or operation of its equipment of any
kind or character used in connection with this franchise.
SECTION 9. COMPLAINT PROCEDURE
Grantee shah maintain a business office or a toll-free telephone listing in the
City for the purpose of receiving inquiries and complaints from its customers and the
general public. Grantee shall investigate all complaints within five (5] days of their
receipt and shall in good faith attempt to resolve them swiftly and equitably. The
following City officials shall be responsible for receiving and acting upon any unreso]ved
complaints: City Administrator. Written notice of this complaint procedure, including
the identity of the City official responsible for receiving unresolved complaints, shall
be given to each subscriber at the time of initial subscription to the cable system.
SECTION 10. CONSTRUCTION AND MAINTENANCE
A. Grantee shall comply with a]] rules and regulations now in force or which
may hereinafter be put into force with respect to proper installation and construction
of lines, cables, wiring and other electronic equipment authorized by this permit and
grant.
Grantee shall use only new cables and equipment with such shielding and
protective devices as may be necessary to insure the best possible service and with
the ]east possible interference. Grantee shall, at its own cost and expense, move its
lines, cables, wiring, towers and other appurtenances to other locations when the City,
through its authorities, may require such removal for the safety and convenience of
said City and other franchise holders and inhabitants affected thereby, or when it is
deemed necessary by City to widen, relocate, reconstruct or improve a street, way or
public place. In those areas where telephone and electric service lines are underground,
Grantee shall place its cables and service lines underground. In the event the Grantee,
after notice, fails or refuses to act, the City shall have the power to remove or abate
the same at the expense of tbe Grantee, all without compensation or liability for
damages from the City to the Grantee. All strt~etures, lines ~nd equipment erected
by Grantee within the City shall be so located as to cause minimum interference with
the proper use of streets, alleys~ easements and other public ways, and placed to cause
minimum interference with the rights or reasonable convenience of property owners
and other utilities. Existing poles, posts, conduits and other such structures of any
telephone company or other public utility which may be made available to the Grantee
under ]ease or Iicense and upon reasonable terms and rates shall be used to the extent
practicable in order to minimize interference with service and avoid unnecessary
duplication of facilltes.
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A. All installations made by the Grantee shall be made in good, substsntial
and safe condition and shag be maintained in such condition at all times. Grantee
shall make no excavations in the streets, alleys, or other public places without first
obtaining a written permit from the City or its agent or representatives. The surface
of any street, alley or other public place disturbed by the Grantee in construction
erecting, maintaining, operating or repairing its s~Vstem shall be restored immediately
by the Grantee after completion of the work to as good a condition as before the
commencement of the work, and such surface shall be maintained at the cost of the
Grantee to the satisfaction of the City for a period of one (1) year from the date
such surface of said street, alley or public place is broken or excavated for such
construction or maintenance work, after which time responsibility for the normal
maintenance of such surface shall become that of the City. Except in unusual
circumstances, the City shall require all street crossings to be made by boring under
the street rather than cutting the street surface.
B. Grantee shall be responsible for all costs and expenses which Grantee's
operation shall cause due to disturbances or damage to the operation or property of
any other utility or franchisee operating utility services within the City or to any such
service or operation provided b)~ the City.
C. If at any time during the period of this franchise the City shall ]awfu]l.~z
elect to alter or change any street, alley, easement or other public way requiring the
relocation of Grantee's facilities, then in such event Grantee, upon reasonable notice
by the City, shall remove, relocate the same at its own expense.
D. Grantee shall, on the request of any person holding a building moving permit
issued by the City, temporarily raise or lower its lines to permit the moving of the
building. The expense of such temporary removal shall be paid by the person recluesting
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the same, and Grantee shall have the authority to require such payment in advance.
E. Grantee shall have the authority to trim trees upon and overhanging all
streets, alleys, easement, sidewalks and public places of the City so as to prevent the
branches of such trees from coming into contact with Grantee's facilities upon approval
of the City in writing.
F. Before any poles or other fixtures are placed in any street or public way
by Grantee, the location thereof shall be reviewed by the City Administrator or sueb
other parson as the City Council may appoint. Sueb poles or other fixtures shall be
placed in such a manner as not to interfere with the usual traffic on such public way
or any other utility. All poles, lines, structures and other facilities of Grantee in,
on, over and under the streets, sidewalks, alleys, easements and Dublie grounds or
places of the City shall be kept by Grantee at all times in a safe condition.
G. Grantee sba~J provide such cable television service in two phases. The
"initial phase" shall continue until Grantee has provided such serviee to all areas of
the city where the housing density is such that one mile of cable would serve at least
35 homes. After completing the "initial phase of operation Grantee shall continue to
operate under what is hereinafter referred to as the "operating phase".
Grantee shall Deposit with the city a certificate of deposit payable to the city
in the amount of Ten Thousand Dollars ($10,000.00~ and in a form approved by the
city. Such certificate of deposit shall be returned to Grantee alon~ with any interest
thereon provided Grantee completes the necessarV construction of the facility so as
to make such service available to at ]east 50% of the homes contemDleted to be served
under the "initial phase" of the operation within one year after the effective date of
this ordinance, or if FCC certification is required prior to implementation of the cable
television service, within one year after the effective dste of the grant by the FCC
of the necessary certification.
Since damages to the city for failure of Grantee to perform as above mentioned
are dificult to measure and since Grentee recognizes that the city will be damaged
in the event of such failure of performance, the amount represented by the certificate
of deposit, plus interest thereon, shall be eonsideree~ as ]~nuie~ated damages and not as
a penality and Grantee agrees that such is deposited with the city to insure performance.
In the event of failure of performance (that is, Grantee's failure within the said on~
year period to complete the necessary construction of the facility so as to make
service available to at ]east 50% of the homes contempated to be served under the
"initial phase" of the operation) City may cash said certificate of deposit without anv
other proceeding and the amount thereof and interest thereon shall be tl~e property
of the City.
H. Grantee will reasonably proceed to complete the "initial phase" of the
operation within two (2) years from the end of such first year.
Thereafter, as a part of Grantee's "operating phase", Grtantee shall construct
and make such service available to areas of the city where densities become in excess
of (35) homes per said mile of cable. The basic formula (serving all areas where
one mile of cable will serve in excess of 35 houses) shall be considered Grantee's
norma] distribution requirment and Grantee shall not be re~]uired to extend service to
those areas of the city where there would be less than said (35) homes served by each
mile of additional cable. However, if requested and at Grantee's option, Grantee m~y
extend servcice beyoud such normal distribution requirment and shall have the right
to charge the subscriber(s~ so served, the actual cost of the extension lines neeesssry
to provide such service.
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I. Grantee may, at the option of the Grantee, and with approval of the developer,
place energized or unenergized cable or conduit in ~]1 new residential developments in
the City as they are constructed. Grantee shall extend cable service to any new
development in the City at the standard rate if:
(a) The new development meets the density requirements of thirtyfive
(35) homes per mile of additional cable and;
(b) Fifty percent (50%) of the new development to be served has requested
service, but
(c) The Grantee shall not be required to complete in any one (D ~ear
installation in new development more than fifty percent (50%) of the existing system.
J. Grantee shall submit to the City Administrator construction plsns showing
all proposed cable routes. The City Administrator sha]l approve said plans before
construction is started; however, any delay occasioned by such approval shall extend
the time for commencement of construction of the system.
g. When completed, Grantee shall file with the City true and correct maps or
plats of all installations as installed.
L. In the event of a dissagreement between Grantee and the City Administrator,
Grantee shall have the right to take the matter to the City Council for determination.
SECTION 11. REVOCATION OF Fi~ANCHISE
If Grantee violates any provisions of this ordinance, it may have its franchise
revoked therefor; however, Grantee will be notified in writing by the City Attorney
of such violation and will have ninety (90) days to correct such violation, and further,
said Grantee shah have a right to a Dublie hearing before the l~qayor and Council, if
so demanded.
SECTION 12. CONSTRUCTION STANDARDS
A. Grantee shah design and construct a Cable Television System capable of
meeting the technical standards for performance contained in Part 76 of the FCC
rules and regn]ations. Construction and maintenance of the Cable Television system,
including house connections, shah be made in accordance with the provisions of the
National Electrical Safety Code, prepared by the Nationa] Bureau of Standards, the
National Electrical Code of the National Board of Fire Underwriters and such applicable
ordinances and regulations of the City.
B. Grantee shah construct a system with technical capacity for twenty (20~
channels of standard 6Mhz television. Only twelve (]2) channels will be activated
initially. Grantee shah have option to make equipment changes and add additional
equipment as necessary to activate additional channels when additional programming
becomes available and the additional services become economically feasible.
SECTION ;t3. CATV SERVICES TO BE PROVIDED
A. Regular Service:
Grantee shah provide the services described below inaccordance with FCC
regulations and subject to FCC approval. Non-required services to be provided shall
be determined by Grantee based on availability, economic feasibility and suitability of
programming content to a significant number of subscribers. It is anticipated that
Grantee may make changes in services provided hereunder.
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(a) Local Television Broadcast Signals:
1. KDFW - TV Dallas-Ft. Worth CBS
2. KXAS - TV Dallas-Ft. Worth NBC
3. WFAA - TV Dallas-Ft. Worth ABC
4. KTVT - TV Dallas-Ft. Worth Independent
5. KERA - TV Dallas-Ft. Worth Educational
6. gXTX - TV Dallas-Ft. Worth Religious
(b) FM Service:
FM Stations Dallas-Ft. Worth All FM in Market
(e) Additional Television and News Service:
7. Independent Broadcast Station
8. Independent Broadcast Station
9. Non-Broadcast National Programming
10. Non-Broadcast Religious Programming
ll. Automated News, Weather and Sports Information
(d) Emergency Alert System:
All channel voice overriOe Civil Emergency Alert System for local
HSe.
B. Premium Service:
Grantee shall select and provide one or more premium services of interest to
a majority of subscribers such as Home Box Office, Home Theatre Network, etc.
C. The Grantee shah furnish its service free of charge to all public schools
as well as public buildings and facilities in the City. Major trunk and distribution
cables will be routed near these installations, where possible, or where the cable s~stem
is in the area, feeder Hoes will be extended to a service point outside the school or
public building. All attachments to school or buildings and facilities shall be at
Grantee's expense but the distribution of the system within these buildings shall be at
the expense of the schools or responsible public agencies. It is further understood
that service to schools and public buildings and facilities will be suplied in a logical
extension of the system into each area rather than construction specifically serving a
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school, because of the cost and extended time required to build a complete system.
Provided, however, it is understood that service will be provided to Coppel] High School
as a part of the initial system.
SECTION 14. I~.ATES
A. The Grantee shall not, as to rates, charges, service facilities, rules, regulations
or in any other respect, make or grant any preference or advantage to any person nor
subject any person to any prejudice or disadvantage, provided that nothing in this
ordinance shall be deemed to prohibit the establishment of a graduated scale of ebar~es
and classified rate schedules to which any customer coming within such classification
would be entitled.
B. Grantee may prescribe the following initial rates and charg~es which shall
not be changed during the first two (2) years of this contract:
(a) Residential Subscribers -
Monthly Service (Primary Outlet) - Each up to $ 8.50
]Vlonth]y Service (Additional Outlets) - Each 1.50
Installation (Prlmary~ 55.00
Installation (Additional Outlets) - Each 10.00
Reconnect (Previous Wired Home) 10.00
(b) Commercial Subscribers
Same as Residential, except as described below:
Motels (Primary Outlet) Monthly - up to $ 8.50
Motels (Monthly Charge per Additional Outlet~ 2.50
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C. Rates for services other than installation of regular equipment and subscriber
services, including but not limited to premium channel service, shah be estimated and
published by Grantee pursuant to the rules of the FCC. Remote control equipment,
lockable converters and other special eeuipment shall, when offered~ be avsilab]e to
subscribers at reasonable rates, which shall be first submitted to the City for approval.
D. Abnormal installations such as installations on interior walls shall be charged
for on an actual direct cost basis. Installations shall include aerial ~op (not to exceed
150 feet in length) from single pole attachment to the inside of an exterior wall of
subscribers residence. Material and labor costs for drop in excess of 150 feet, interior
wall connections, concealed wiring and all underground drops will be quoted at Grantee's
cost.
E. Grantee shall make no charge except those charges expressly authorized
herein. Costs incurred by Grantee for the purpose of applying for rate increases shall
not be considered as operating expenses of Grantee for rate increase purposes.
F. Contents of Grantee's bill form shall be approved in advance by the Cit~7
Council.
SECTION 15. RATE CHANGES
A. No increase in rates charged for installation of equipment and regular
subscriber services as specified above shall be made effective except as sutborized by
the City Council. Not later than sixty (60) days after public notice of the proposed
increase as given by Grantee to the City Council, there shall be held a full, open and
public proceeding upon prior notice with opportunity of all interested parties to be
heard. It is contemplated that the City Council shall not unreasonably withhold
approval. If the City Council fails to approve the Droposed increase, the Grantee
may pursue his rights under law.
B. Approval of the City Council must be obtained for any increase in rates
charged for installation of equipment and regular subscriber services resulting from
the imposition of a Federal or State sales tax or FCC regulatory tax on the industry
or other regulardry agency or body tax.
C. Changes to rates for services other than installation of equipment and
regular subscriber services, including, but not ]imited to premium channel service, shall
be established and published by Grantee pursuant to the rules of the Federal Comm-
unications Commission.
SECTION 16. FCC RULES APPLICABLE
This franchise is governed by and subject to all applicable rules and regulations
of the Federal Communications Commission, specifically including Part 76, and by the
laws of the State of Texas. Should there be any modifications of the provisions of
Section 76.31 of the Rules and Regulations of the Federal Communications Commission
which must be incorporated into this franchise, the City and Grantee agree that such
incorporation shall be accomplished within one t]~ year after the effective date of the
FCC's adoption of the modification or upon renewal of this franchise, whichever occurs
first.
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SECTION 17. NON-EXCLUSIVE FRANCHISE
This franchise is not exclusive and nothing herein contained shah he construed
to prevent the City from granting any other like privilege to any other person. Where
this ordinance conflicts with any other ordinance of the City including Ordinance No.
~92A, this ordinance shall be controlling.
SECTION 18. SEVERABILITY
If any section, subsection, sentence, clause, phrase or portion of this ordinance
is for any reason held invalid or unconstitutional by any Federal or State Court or
administrative or governmental agency of competent jurisdiction, specifically including
the FCC, such portion sha]] be deemed a separate, distinct and independent Drovision,
and such holding shah not affect the validity of the remaining portions hereof.
SECTION 19. EFFECTIVE DATE
This ordinance shah become effective upon fina] passage. Grantee shal] have
thirty (30) da,Vs after final passage of this ordinance in which to file its written
acceptance hereof with the Governing Body of the City.
DULY PASSED by the City Council of the City of Coppel], Texas, this ~2_7
day of fi?St/cCL_-~ , 1979~
ATTEST: