OR 192-A Regulates CATV & provides certain definitions ORDINANCE NO. 192A
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, REGULATING CATV; CONTAINING
CERTAIN DEFINITIONS; PROVIDING POLICE POWERS; PROVIDING TERRITORIAL LIMITS;
PROVIDING A RENEWAL PROCEDURE; SETTING OUT FRANCHISE FEES; SETTING FORTH
THE PROVISIONS OF TRANSFERS; CONTAINING AN INDEMNIFICATION CLAUSE; PROVIDING
A COMPLAINT PROCEDURE; PROVIDING FOR CONSTRUCTION AND MAINTENANCE OF A
CABLE TELEVISION SYSTEM; CONTAINING A REVOCATION CLAUSE; PROVIDING CONSTRU-
CTION STANDARDS; SETTING FORTH CATV SERVICES TO BE PROVIDED; SETTING FORTH
PROCEDURES FOR RATE CHANGES; ADOPTING APPLICABLE FCC RULES; PROVIDING A
PENALTY FOR VIOLATIONS OF THE PROVISIONS OF SUCH ORDINANCE NOT TO EXCEED
$200.00 FOR EACH VIOLATION; PROVIDING FOR A FILING FEE; REPEALING ORDINANCE
NUMBER 192; REPEALING ANY PART OF ANY OTHER ORDINANCE WHICH IS IN CONFLICT
WITH THIS ORDINANCE; PROVIDING A SEVERABILITY CLAUSE; SETTING FORTH RE-
QUIREMENTS FOR APPLICATION FOR LICENSE; AND PROVIDING FOR AN EFFECTIVE DATE.
TEXAS;
SECTION 1:
SECTION 2:
SECTION 3:
SECTION 4:
SECTION 5:
SECTION 6:
SECTION 7:
SECTION 8:
SECTION 9:
SECTION 10:
SECTION 11:
SECTION 12:
SECTION 13:
SECTION 14:
SECTION 15:
SECTION 16:
SEETION 17:
SECTION 18:
SECTION 19:
SECTION 20:
SECTION 21:
SECTION 22:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL,
Index
Definitions
Subject to Police Powers of City
Territorial Area Involved
Franchise Term
Renewal Procedures
Franchise Fees
Transfers
Indemnification
Complaint Procedures
Construction and Maintenance
Revocation of Franchise
Construction Standards
CATV Services to be Provided
Rate Changes
FCC Rules Applica)le
Unlawful Acts
Filing Fees
Application for License
Repealing Clause
Severability
Effective Date
SECTION 2: DEFINITIONS
CITY: Shall mean the City of Coppell, a municipal
in the State of Texas.
corporation
Texas.
D.C.
CITY COUNCIL; Shall mean the City Council of the City of Coppell,
FCC: Shall mean the Federal Communication Commission, Washington,
UTILITIES: Shall mean water lines, sanitary sewer lines, gas
lines, telephone lines or conduit, electric lines, either underground or over-
head, and other public or private transmission or distribution systems.
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 broadcast by one or more t~)evision
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.
FE)ANCHISE: 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 is herein defined, is granted by the City of CoUncil under
this ordinance, and the lawful successor, transferee or assignee of said
person, firm or corporation.
STREET: Shall mean the surface, the air space above the surface
and the area below the surface of any public street, alley, communications
for public utility easement, or other public rights-of-way or public ~laces.
SUBSCRIBER: Shall mean any person or entity receiving for any
purpose 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 techniques
for which subscribers desiring such service pay extra fees on a fees or a
per channel or on a per program basis.
SECTION 3: SUBJECT TO POLICE POWERS OF CITY
Grantee shall at all times during the term of a franchise to be
subject ~o all lawful exercise of the police power of the City. The right is
hereby reserved to the City to adopt, in addition to the provisions herein
contained and any other existing applicable ordinances, such additional
applicable ordinances as it shall find necessary in the exercise of its police
p~war: providing thaL such regulation3 ~hall be r~sonable and not in rnnfl~rf
power; providing that such regulations shall be reasonable and not in conflict
with the rights herein granted, the laws of the State of Texas, the laws of
the United States of America, or the rules of the Federal Communications
Commission.
SECTION 4: TERRITORIAL AREA INVOLVED
This franchise is for the present territorial limits of the city
and for any area henceforth added thereto during the term of this franchise.
SECTION 5: FRANCHISE TERM
A franchise shall take effect and be in full force from and after
the final passage hereof, subject to acceptance by Grantee as herein provided,
and the same shall continue in full force and effect for a term of fifteen
(15) years, beginning with the date of such acceptance; provided, however,
that FCC certification be necessary prior to implementation 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 6: RENEWAL PROCEDURE
Grantee shall have the option of renewal of a franchise for an
additional period not ~o exceed fifteen (15) years. Should grantee exerciBe
this option, it shall Bo notify the City, in writing, not less than three
(3) m~nths prior to expiration of this franchise. Upon exercise of this option
by Grantee, the City shall conduct a full renewal proceeding upon prior notice
and opportunity of all interested parties to be heard. The renewal proceeding
shall be held for the purpose of considering Grantee's performace under this
franchise ~n order to determine whether to renew this franchise. Renewal shall
not be unreasonably denied and shall be granted unless Grantee is found, after
opportunity to be heard, 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 a franchise is renewed by the City, all of
the terms and provisions contained herein shall be controlling during the re-
newal 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 proceedings prior to the expir-
ation of a franchise, Grantee shall have the right to continue the operation
of this 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 acommpanied by a written statement setting
forth the reasons for the denial by any court of competent jurisdiction.
Fi~thermore, tn the event that the City denies renewal, Grantee shall be
afforded a period ef six (6) months following denial within which to sell,
transfer or convey this ca)~e television system, including the franchise,
to a qualified purchaser at fair market value. During this six-month period,
which shall run from the effective date of the final order or decision denying
renewal, including any appeal, Grantee shall have the right to operate this
cable television system pursuant to the terms of this franchise.
SECTION 7: FRANCHISE FEES
Grantee shall pay the City a quarterly franchise fee equal to
three pereent (3%) of gross quarterly receipts and said fee shall be paid
within thirty (30) days after the end of each calendar quarter. The City shall
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 receipt statement prepared and
signed by a certified public accountant within sixty (60) days after the c~ose
of Grantee's fiscal year. As a result of this final statement, adjustments
shall be made by either the City or the Grantee to the quarterly amounts paid
during the preceeding year.
SECTION 8: TRANSFERS
All of the rights and privileges and all of the obligations, duties
and liabilities created by a franchise shall pass to and be binding upon the
successors of the City and the Grantee. A franchise shallAbe assigned or
transfereed without the written approval of the City Council, which approval
shall not be unreasonably withheld provided the transferee or assignee meets
financial, personal and experience qualifications as set forth by the City.
This section shall not prevent the assignment of a franchise by Grantee as
security for debt without approval of the City. Transfers or assignments of a
franchise between parent and subsidiary corporation or between entities of
which at least 51% of the beneficial ownership is held by the same person,
persons or entities shall be permitted without prior approval of the City.
SECTION 9: INDEMNIFICATION
Grantee shall save the city harmless from all loss sustained by
the City on account of any suit, judgment, execution, claim or demand what-
soever against the City resulting from negligence on the part of Grantee
in the construction, operation or maintenance of its cable television system
in the City; and for this purpose Grantee shall carry property damage and
personal liability insurance with some responsible insurance company or
companies qualified to do business in the State of Texas. The amounts of
such insurance to be carried for liability due to property damage shall be
$300,000 as to any o~e person and $300,000 as to any one accident; and against
liability due to injury ~o or death of persons, $300,000 as to any one person
and $900,000 as to any one accident. The City shall notify Grantee, in writing,
within ten (10) days after the presentation of any claim or demand, either
by suit or otherwise, made aginst the City on account of any negligence as
aforesaid on the part of Grantee. Failure by the City ~o property notify
Grantee within ten (10) days of any such claim, suit or demand against the City
shall release Grantee from its obligation to indemnify the City as provided herein.
SECTION 10: COMPLAINT PROCUEDURES
Grantee shall 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 and unresolved 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 11: CONSTRUCTION AND MAINTENANCE
(A) All structures, lines and 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~,pb)lic ways, and placed to cause
minimum interference with the rights or reasonable convenience of property
owners, and Grantee shall comply with all reasonable, proper and lawful ord-
inances of the City now or hereafter in force. Existing poles, posts, con-
duits and other such structures of any telephone company or other public
utility be made abailable to the Grantee for leasing or licensing upon reason-
able terms and rates and may be used to the extent practicable in order to
minimize interference with service and avoid unnecessary duplication of
facilities.
(B) In case of any disturbance by Grantee of pavement, sidewalk,
driveway, or other surfacing, Grantee shall at its own cost and expense and
in a manner approved by the City, replace and restore all paving, sidewalk,
driveway, utilities or surfaces so disturbed in as good condition as before
said work was commenced.
(C) In the event that at any time during the period of this fran-
chise the City shall lawfully 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 line to
permit the moving of the building. The expense of such temporary removal shall
be paid by the person requesting 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 over-
hanging all streets, alleys, easement, sidewal ks and public places of the City
so as to prevent the branches of such tress from coming into contact with
Grantee's facilities upon approval of the city in writing.
(F) All poles, lines, structures and other facilities of Grantee
in, on, over and under the streets, sidewalks, alleys, easements and public
grounds or places of the City shall be kept by Grantee at all times in a safe
condition.
(G) Should any construction be necessary for Grantee to provide the
cable television service contemplated under this franchise, a significant portion
of such construction (at least 50%) shall be accomplished within one (1) year
after the effective date of this Ordinance, or if FCC certification is required
prior to implementation of the cable television service contemplated under
this franchise, within one (1) year after the effective date of the grant by
the FCC of the necessary certification. Thereafter, Grantee shall reasonably
proceed to complete the necessary construction at a rate of not less than 100%
within two (2) years from the end of such first year.
(H) Grantee shall not be required to extend service to those areas of
the City where there would be less than 35 homes in front of each mile of additional
cable. Areas with densities in excess of the 35 homes per mile of cable shall be
considered as part of the necessary normal distribution. If requested and at
Grantee's option, Grantee may extend service beyond the normal distribution and
shall have the right to charge the subscriber(s) the actual cost of the extension
lines necessary to provide service.
(I) Grantee may, at the option of the Grantee, place energized or
unenergized cable or conduit in all 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
35 homes per mile of additional cable and;
b. Fifty percent of the new development to be served has
requested service, but
c. The Grantee shall not be required to complete in any one
year installation in new development more than 50% of the existing system.
SECTION 12: REVOCATION OF FRANCHISE
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 shall have a right to a public hearing before
the Mayor and Council, if so demanded, within ten (10) days of being notified of
a violation of the terms and conditions of this Ordinance.
SECTION 13: CONSTRUCTION STANDARDS
(A) Grantee shall design and construct a Cable Television System
capable of meeting the technical standards for performance contained in Part
76 of the FCC rules and regulations. Construction and maintenance of the Cable
Television system, including house connections, shall be made in accordance
with the provisions of the National Electrical Safety Code, prepared by the
National 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 shall construct a system with technical capacity
for 20 channels of standard 6Mhz television. Only twelve (12) channels will
be activated initially. Grantee shall 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 14: CATV SERVICES TO BE PROVIDED
(A) Regular Service:
Grantee shall provide the services described below in accor-
dance with FCC regulations and subject to FCC approval. Non-required services
to b~ 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 pro-
vided hereunder. Service is as follows:
a. Local television broadcase signals:
1. KDFW - TV
2. KXAS - TV
3. WFAA - TV
4. KTVT - TV
5. KERA - TV
6. KXTX - TV
b. FM Service:
FM Stations
Dallas-Ft. Worth CBS
Dallas-Ft. Worth NBC
Dallas-Ft. Worth ABC
Dallas-Ft. Worth Independent
Dallas-Ft. Worth Educational
Dallas-Ft. Worth Religious
Dallas-Ft. Worth
c. Additional television and news service:
All FM in Market
d. Emergency Alert System:
All channel voice override Civil Emergency Alert System
for local use.
(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.
7. Independent Broadcast Station
8. Independent Broadcast Station
9. Non-Broadcast National Programming
10. Non-Broadcast Religious Programming
11. Automated News, Weather and Sports Information
(C) Grantee shall install one outlet each and provide normal regular
service to the following public facilities within 200 feet of the cable televi-
sion distribution system at no cost to the City or the user: City Hall, City
Library, all fire and police stations, all public elementary, secondary and
high schools and all public hospitals.
SECTION 15: RATE CHANGES
The rates for installation of equipment and regular subscriber
service shall be nondiscriminatory and shall be as set forth in the Franchise
Agreement.
(A) No increase in rates charged for installation of equipment
and regular subscriber services as specified above shall be made effective
except as authorized 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 it contem-
plated that the City Council shall not unreasonably withhold approval. If
the City Council fails to approve the proposed increase, the Grantee may pursue
his rights under law.
(B) Recognizing the pendency of court litigation and Congressional
legislation at the time of the passing of this Ordinance which may impose
copyright liability on all or a part of the cable television service rendered
by Grantee in the City, and further recognizing the uncertainty and jeopardy
into which such potential liability places Grantee, should such copyright
liability be imposed upon Grantee by any court or by the Congress, Grantee
shall have the right to increase its rates for regular subscriber services
in order to offset such copyright liability. Any increase in Grantee's rate
schedule pursuant to this paragraph shall not be subject to the procedures
specified in the preceding paragraph and shall become effective ten (10) days
after notice of such increase is given to the City Council together with a
certification that the increase is due solely to the imposition of copyright
liability and that the increase is limited to any amount necessary to cover
the amount of the liability.
(C) 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 regulatory agency or body tax.
(D) Rates for services other than installation of equipment and
regular subscriber services, including, but not limited to premium channel
service, shall be established and published by Grantee pursuant to the rules
of the Federal Communications 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 in-
cluding part 76, and by the laws of the State of Texas. Should there by 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 accom-
plished within one (1) year after the effective date of the FCC's adoption of
the modification or upon renewal of this franchise, whichever occurs first.
SECTION 17: UNLAWFUL ACTS
(A) It shall be unlawful for any person to make any unauthorized
connection, whether physically, electrically, accoustically, inductively or
otherwise, with any part of Grantee's cable television system for the purpose
of enabling himself or others to receive any television signals, radio signals,
pictures, programs, sounds, or any other information or intelligence trans-
mitted over Grantee's cable system without payment to Grantee or its lessee.
(B) It shall be unlawful for any person, without the consent of
the owner, to willfully tamper with, remove, or injure any cable, wires, or
other equipment used for the distribution of television signals, radio signals,
pictures, programs, or any other information or intelligence transmitted over
Grantee's cable system.
(C) Any person, firm or corporation violating any of the provisions
of this ordinance shall be deemed guilty of a misdeameanor and, upon conviction,
shall be punished by a penalty of fine not to exceed the sum of Two Hundred Dollars
($200.00) for each offense, and each and every day such offense is continued shall
constitute a new and separate offense.
SECTION 18: FILING FEE:
A One Thousand Dollar ($1,000.00) filing fee shall be paid by each
applicant, upon submitting an application to the City for a franchise.
SECTION 19: APPLICATION FOR LICENSE
(A) Each applicant for a franchise to construct, operate or
maintain any cable television system in the City shall be filed with the
City Council and shall contain, at a minimum, the following:
The name, address and telephone number of the
applicant. If the applicant is a partnership,
the home and business of each partner shall
also be set forth. If the applicant is a cor-
poration, the application shall state the name
and addresses of its directors, main officers,
major stockholders and associates and the names
and addresses of parent or subsidiary companies.
A statement setting forth in its entirety any
and all agreements and understandings, whether
formal or informal, written, oral or implied
existing or proposed to exist between the app-
licant and any person who proposes to have an
ownership interest with respect to the proposed
franchise or to the proposed cable television
operation. If a franchise is granted to a person
acting as a representative of another person and
such information is not disclosed in the original
application, the franchise shall be deemed void
and of no force and effect.
Financial statements, as determined by the Council
showing applicant's financial status and financial
ability to complete the construction and installa-
tion of the proposed cable system and/or continue
the operation of the existing cable system.
A statement describing the cable system and speci-
fying the type and capacity of the cable system
proposed to be constructed, installed, maintained
or operated by the applicant and the proposed or
existing location of the cable system.
A description of all previous experience of the
applicant in providing cable television system
service and in related or similar fields.
(B) Prior to the issuance of a franchise, the Council shall
provide for the holding of a public hearing following reasonable notice to
the public, at which every applicant and its proposals shall be examined and
the public and all interested parties afforded a reasonable opportunity to be
heard.
APPROVED AS TO FORM:
(C) In making any determination hereunder as to any application,
the Council shall give due consideration to the quality of the service proposed,
experience, character, background and the financial responsibility of any
applicant and its management and owners, willingness and ability to abide by
policy conditions, license limitations and requirements, and any other consider-
ations deemed pertinent to the Council for safeguarding the interest of the
City and the public.
SECTION 20: REPEALING CLAUSE
All ordinance or parts or ordinance inconsistent or in conflict with
the provisions of this ordinance are hereby repealed. Ordinance Number 192 is
specifically repealed. However, the repeal of existing ordinances by this
ordinance shall not affect or prevent the prosecution or the punishment of
any person for any act done or committed prior to the effective date of this
ordinance in violation of any ordinance hereby repealed; and prosecution for such
offenses may be instituted and causes presently pending proceeded with in all
respects as if such prior ordinance or ordinances had not been repealed.
SECTION 21: SEVEP. ABILITY CLAUSE
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 of administrative or governmental agency of competent jurisdiction,
specifically including the FCC, such portion shall be deemed a separate, distinct
and independent provision, and such holding shall not affect the validity of the
remaining portions hereof.
SECTION 22: This ordinance shall take effect immediately from and
after the publication of its caption, as the law in such cases provides.
DULY PASSED by the City Council of the City of Coppell, Texas, this
day of
APPROVED:
John R.~ Burns, Mayor
ATTEST~
Lawrence W. Jackson, City ATTORNEY