HomeMy WebLinkAbout36-84BEFORE THE CITY COUNCIL OF THE CITY OF DANVILLE
IN THE MATTER OF: )
)
Granting to Ponderosa Cable Systems )
Limited A Non-Exclusive Franchise to )
Install, Maintain aFd Use a Cable )
Television System U der, Along, )
Across and Upon the Public Streets as)
They Now or May Hereafter Exist )
Within the City of Danville )
)
ORDINANCE NO. _~r~__
The City Council of the City of Danville DOES ORDAIN as
follows:
A non-exclusive franchise to install, maintain and use
in the city streets a cable television system is granted to
Ponderosa Cable Systems Limited.
The grant of the franchise is made under and subject to
Sections 10-101--10-1127 of the Danville Municipal Code.
The franchise granted by this Ordinance is for a term of 15
years from the date the franchisee files written acceptance with
the City as provided in Section 10-1116 of the Danville Municipal
Code. (Section 10-151).
The area for which the franchise is granted is the area
comprising the City of Danville.
The documents comprising the award agreement consist of:
(1) Sections 10-101--10-1127, Danville Municipal
code;
(2) the application of Ponderosa Cable Systems
Limited dated E~b~_~_~;
(3) this Ordinance; and
(4) the franchisee's written acceptance (Section
10-1116) and the performance bond (Section 10-1101),
insurance (Sections 10-1104, 10-1106) and security fund
(Section 10-1105) if required, and the supplemental
agreement referred to in Exhibit B of this Ordinance.
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The franchise is granted subject to the terms and conditions
set forth in the documents comprising the award agreement.
The subcriber rates and charges are those set forth in
Exhibit "A" attached and made a part by this reference.
The franchise is granted subject to the additional terms and
conditions set forth in Exhibit "B" attached and made a part by
this reference. If there is a conflict or inconsistency between
the additional terms and conditions in Exhibit "B" and other
parts of the award agreement, the former control the
interpretation and application of the award agreement.
The franchise becomes effective when the franchise files
written acceptance with the City in the time and manner
prescribed in Section 10-1116, Danville Municipal Code.
This ordinance becomes effective 30 days after its adoption.
The City Clerk shall either: (a) have this ordinance
published once within 15 days after adoption in a newspaper of
general circulation; or (b) have a summary of this ordinance
published twice in a newspaper of general circulation, once 5
days before its adoption and again within 15 days after adoption.
The foregoing ordinance was introduced at a regular meeting
of the City Council of the City of Danville held on July 2, 1984,
and adopted at a regular meeting of the Council held on
___~U~y_~ ..... , 1984, by the following vote:
AYES:
Lane, May, Mc Neely, Offenhartz, Schlendorf
NOES: None
ABSENT: None
ATTEST=
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EXHIBIT "A"
SUBSCRIBER RATES AND CHARGES
Service r.eve]
Access Fee (iii)
Basic Service (24 channels):
First outlet
Additional outlet
Expanded Basic (26 channels):
First outlet
Additional outlet
FM Service (20 stations):
First outlet
Additional outlet
Commercial Bulk.
Premium Services (vii)
HBO
Showtime
The Movie Channel
Cinemax
Bravo
The Disney Channel
Galavision
HTN
Playboy
Underground Install ation
Re] ocation Inst~] ] ation
Reconnection In~ta]]atioD
Converter Deposit
Converter InstallatiOn
Convelter Remote Control
Device
Parental Control Device
Extenaed Drop Installation
Month]
$6.00
$2.50
1.00
$5.00
2.00
$2.00
1.00
$11.95
11.95
11.95
11.95
9.95
10.95
9.95
9.95
11.95
None
None
None
None
None
None
None
None
Insta) ] (], it ]
$25.00
5.00 (iv,v,vi)
$25.00(v)
5.00 (iv,v,vi)
$25.00(v)
5.00 (iv,v,vi)
No installation
charge if installed
at the same time as
other services.
$25.00 otherwise.
$25.00(viii)
None
None
None
$25.00 plus time
and materials for
that beyond
standard drop.
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Notes:
i
ii
iii
iv
v
vi
Vii
viii
Charter subscriptions, without further charge,
are offered, including all Basic, Expanded
Basic, FM and Premium Services, and including
all such services added in the future, for full
term of the franchise regardless of future rate
increases, "plus other benefits", for: . $1,500 - 1st outlet
· 250 - each additional outlet
· 700 - additional outlets only, each
Standard installation fee shall be waived for:
· subscriptions within 60 days after service
is first available,
· each outlet served by a Charter Subscrip-
tion, and
· promotional purposes from time to time.
Not applicable to FM outlets.
Up to a maximum of $35.00 for the first service
visit, regardless of the number of outlets
installed.
$15.00 when installed in conjunction with
subsequent service calls.
Up to $25.00 per visit for subsequent service
calls limited to installation of secondary
outlets.
Multi-service Package Plan for $18.00/month
includes 15 credit units, with one day's access
to any premium service per unit. Extra
selections cost $1.20 per service, per day.
Refundable, with deduction for damages.
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EXHIBIT "B"
ADDITIONAL TERMS AND CONDITIONS
1. The operator shall construct Phase I as described in the
Proposal within twelve (12) months from the date of the Award
Agreement as set forth in Section 10-133(b) (2) of the Danville
Cable Ordinance and shall construct a cable system throughout the
balance of Danville within five (5) years from the commencement
date, as defined in Section 10-133(b) (1) for Phase I. The
operator shall use its best efforts to complete construction of
the balance of Danville sooner than five (5) years. The operator
shall provide the City Council a semi-annual report on the
progress and projections for completing construction of the
balance of Danville to show it continues to act in good faith and
use its best efforts.
2. The Franchisee shall establish a security fund as
required by Section 10-1105 to insure faithful performance of the
Franchisee's cable system installation responsibilities. The
security shall include a performance bond in the minimum amount
of one hundred fifty thousand dollars ($150,000), plus a five
thousand dollar ($5,000) cash deposit in a fund with interest
bearing to the Franchisee. These securities shall be held and
administered as provided in Section 10-1105. The City Manager is
authorized, when the City Engineer so recommends, to reduce the
amount of the performance bond upon the Franchisee's successful
completion of the system construction for which the bond
is required.
Page 1 of 4
3. Within thirty (30) days of the adoption date of
Ordinance No. 36-84 granting the franchise, the Franchisee shall
provide to the City:
a. Verification in the form of signal surveys or other
corroborating evidence acceptable to the City that the site
selected for the satellite earth station is suitable;
b. Technical performance specifications acceptable to
the City including specifications for interconnection (see
Section 10-132(b)).
All of the Franchisee's submittals in accordance with this
Item 3 shall, when accepted by the City, be considered a part of
the Award Agreement.
5. The City and the Franchisee shall, within thirty (30)
days of the adoption date of Ordinance No. 36-84 enter into a
supplemental agreement which shall be considered a part of the
Award Agreement providing for such additional technical informa-
tion, procedures and conditions as are necessary to implement
Sections 10-101 through 10-1127 of the Danville Municipal Code,
including but not limited to:
a. Procedures for implementing access channel capacity
(Section 10-122(a));
b. Procedures under which the Franchisee may use
available air time on an access channel for its own programming
purposes during periods of time the channel is not otherwise
needed for community service programming (Section 10-122(f));
c. Procedures and conditions to implement system
capability and cable services generally as provided in Section
10-122(b);
Page 2 of 4
d. A boundary map defining the service areas for Phase
I in terms of streets and addresses.
e. Cable service extension criteria as required by
Section 10-141(d) and 10-Ill(f).
f. A detailed description of the Franchisee's plan for
providing community access and local organization services
including facilities, equipment, technical staff support, and
financial contributions as required by Section 10-122.
g. A method by which more than one cable operator may
use a single above, or underground drop from the cable distribu-
tion plant to the terminal.
h. A month by month build-out schedule for Phase I
which provides that all services offered in the Proposal shall be
installed and available to customers not more than twelve (12)
months from the date Ordinance No. is adopted.
i. Verification acceptable to the City that financing
required for completion of Phase I is guaranteed to the
Franchisee as required by Section 10-1111(2)(e), and Section
10-1111(5) and (6).
j. Such other provisions as are considered necessary
and desirable.
The execution of the supplemental agreement between the
parties is an integral and necessary part of the Award Agreement.
6. Any agreement regarding community access programming
between the Franchisee and the Danville Community Access
Corporation, as more specifically described in the Proposal, is
subject to the review and approval of the City COuncil, with any
such agreements to be effective and to implement community
Page 3 of 4
service and television within five (5) years from the commence-
ment date as defined in Section 10-133(b) (1) for Phase I.
7. The Franchisee shall pay the amounts required to be paid
under Section 10-1112 on or before the execution of the supple-
mental agreement provided for in Item 4.
8. In the event a lawsuit is filed against the Franchisee
and the City alleging that the Award Agreement with the Franchise
is a violation of the Sherman or Cartwright Acts:
a. The Franchisee shall be the lead defendant and shall
employ lead counsel to defend the lawsuit. The City is not
required to vigorously defend a lawsuit and instead may rely on
the Franchisee to defend the lawsuit.
b. If a final joint and several judgement is entered
awarding damages, the Franchisee will pay the judgement.
Page 4 of 4
~ ~ CITZ (F
Pe~M~fBA~ ~, LTD.,
R~une~ BY (]eDINANCE 36-84 OF ~e CITY OF DANVIf~R
This document shall constitute the supplemental agreement referred
to in Condition 5 of Exhibit "B" to Ordinance 36-84. Necessary additional
terms, conditions and information required by Ordinance 36-84 and its
exhibits or the Danville Cable Ordinance are also included herein.
Reference in the following letter paragraphs will be made to the corre-
sponding paragraphs in Ordinance 36-84, Exhibit "A," Exhibit "B," or the
Danville Cable Ordinance, Sections 10-101 through 10-1127.
1. (Condition 3(a) of Exhibit "B"). The suitability of the site
selected for the satellite earth station will be confirmed by a letter from
the Franchisee's engineer with attached data which is acceptable to the City
on or before approval of the expanded land use permit for the site as
described below.
2. (Condition 3 (b) of Exhibit "B" ). Attached hereto as
Exhibit "1" to this Supplemental Agreement are technical performance
specifications provided by Jerrold Cable Television Equipment which are
acceptable to the City in satisfaction of above referenced condition.
3. (Danville Cable Ordinance Sections 10-122 (b) and (f) and
Conditions 5 (a) , (b) , (c) , (e) and (f)). Three channels will be set aside
by the Franchisee for community access: Channel 64 (Municipal Channel),
Channel 65 (Education Channel), and Channel 66 (Community Channel). If the
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City Council determines that the existing channels are substantially
lanilized, the Franchisee shall provide up to three additional channels and
shall be given sixty days notice prior to the necessary activation date.
Provided reasonable advance notification to the appropriate entity, the
Franchisee .may use available air time on an access channel for its ~
progranming purposes at no charge during the periods of time the channel is
not otherwise needed for canonunity service progran~ning, consistent with
Ordinance Section 10-122(f).
The City shall be provided access to available upstream and down-
stream bandwidth on the system, not otherwise in use, for telemetry control
of traffic signals and other purposes, consistent with Ordinance Section 10-
122(e). A mutual agreement regarding implementation as required under
Section 10-122 (e) shall be adopted before telemetry transmission is
implemented. The City, per the Award Agreement, is being provided no rights
greater than those set forth in Section 10-122 (e) .
Pages 23-27 of the Franc, hisee's Proposal describes its plan for
~-~:Efmunity service television. ?he Franchisee shall reserve for ccrlnunity
service television an amount equal to the difference between the
Franchisee's yearly payments to t~he municipality and five percent of its
total annual gross proceedings. b~ds shall be retained in a separate
interest-bearing escrow account. If the Franchisee obtains fifty percent of
the market after build-out, there should be a monthly budget of approxi-
mately $10,000 through such contribution and not considering outside grants
or other revenue. In addition, ~he ~ranchisee shall provide within five
years, upon request when needed, '._'se of .-aquipment valued up to $50,000 for
c~r~nunity access progra/~ning and .~hall also provide reasonable access to
recording facilities in the Franchisee's local office or in another location
designated by the Franchisee. The Franchisee shall meet all the
requirements of Ordinance Section 10-122 and shall use its best efforts
consistent with the requirements set forth therein to provide the means for
high-quality, professional cablecasting of c~n~nunity-oriented prographing
which originates locally. It is understood that the City may delegate
responsibility for operation and management of a channel to another entity
such as a public non-profit corporation representing a broad spectrum of the
cce~nunity, in particular, the proposed Danville Cc~munity Access Corporation
(DCAC), and that the City may authorize the entity to receive and allocate
funding, facilities, equipment and other resources for cc~munity service
programming purposes, develop and administer operational policies, hire and
supervise personnel, and undertake other responsibilities necessary for
access channel operation, pursuant to Section 10-122(g). Such non-profit
corporation may be reimbursed for its start-up costs from the Franchisee's
required contributions to co~nunity access progranm~ing when received. The
City Council, in its adoption of Ordinance 36-84, has approved in concept
use of DCA~ to implement cc~nunity service programming. Authority under
Section 10-122(g) and access to the funds in the escrow account will be
delegated to DCAC upon approval by the City Council of its final plan for
implementing con~nunity service progran~ning.
4. (Condition 5 (d) of Exhibit "B" ). Attached hereto as
Exhibit "2" to this Supplemental Agreement is a computer readout of street
addresses within the Phase I service area. The present incorporated
boundaries of the Town of Danville shall constitute the Franchise boundaries
as stated in Section 4 of Ordinance 13.
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5. (Condition 5(e) of Exhibit "B") . The ADDENDUM PONDERf~A CABLE
SYST~4S, LTD. CATV SERVIc~ PRDP(FzAL sets forth cable service extension
criteria as required per Ordinance Sections 10-141(d) and 10-ill(f).
6. (Condition 5(g) of .Exhibit "B"). The Franchisee intends to
use underground drops. The Franchisee shall install such drops underground
when necessary to prevent two aerial drops to a single customer, provided
requested to do so by the property owner in question. The property owner
shall be advised in advance of both options. The charges for both options
shall be the same.
7. (Condition 5(h) of 'Exhibit "B"). Given good weather and
optimum conditions for construction, the Franchisee intends to construct two
miles per week, which should be approximately 200 homes per week. The
Franchisee intends to complete Phase I, as described in the Proposal, within
four months from the date all necessary encroachment permits and an amended
land use permit for the expanded head-in facilities on Old Blackhawk Rsad
are obtained. If poor weather for construction or other conditions beyond
the control of the operator should occur, Phase I should be completed in the
time it takes to make up the lost work days. The foregoing is the projected
build-out schedule for Phase I. Failure to comply therewith shall not
constitute a breach of the Award Agreement unless all services offered in
the Proposal are not installed or available to the customers in Phase I
within twelve (12) months from the date the Ordinance is adopted. Any
extension beyond the twelve months must be approved by the City Council.
The City Council shall approve an extension where good cause therefor is
shown.
8. (Condition 5 (i) of Exhibit "B"). Attached hereto as
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Exhibit "3" to this Supplemental Agreement is a letter from the Franchisee
that is acceptable to the City showing that financing required for the
completion of Phase I is guaranteed to the Franchisee.
9. (Condition 5(j) of E~hibit "B").
a. Exhibit "A" to Ordinance 36-84 is modified as to the
following rates and charges:
(1) As to "Underground Installation," there will be no
charge if the customer allows the work to be performed at the time the
system is being first constructed on the frontage of that customer's house
or building. If the Franchisee is denied access at that time and service is
subsequently requested, underground installation shall be determined on a
time and material basis.
(2) As to "Relocation Installation," the charge shall
be $25.
be $25.
(3) As to "Reconnection Installation," the charge shall
(4) As to "Premium Services," with respect to
installation charges, the following shall be added after "$25 otherwise.":
"No charge for disconnection of Premium Service. One dollar charge per
Premium Service channel for reconnection of Premium Service after initial
installation and disconnection."
(5) As to Note vii, the following shall be added at the
end of that subparagraph: "Availability of this option subject to approval
of Premium Service program suppliers. If "Multi-service Package Plan" as
above described not used, then marketing plan with similar flexibility shall
be used and there shall be no increase in rates for the Premium Services as
a result."
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