84-18 O - Star CaTV Investment Corp to Maintain and Operate Television Antenna Service ORDINANCE NO. FY -1b'
110
AN ORDINANCE GRANTING STAR CATV INVESTMENT CORP . ITS SUC-
CESSORS AND ASSIGNS, A PERMIT TO LOCATE, CONSTRUCT, MAINTAIN
AND OPERATE A TELEVISION ANTENNA SERVICE IN THE CITY OF
PROSPER, TEXAS ;AUTHORIZING THE USE, RIGHT, PRIVILEGE, POWER
AND AUTHORITY TO CONSTRUCT, MAINTAIN, OPERATE AND REMOVE IN,
OVER AND ACROSS THE STREETS, AVENUES , ' PARKWAYS AND PUBLIC
PLACES THE NECESSARY EQUIPMENT FOR THE OPERATION OF A TELE-
VISION ANTENNA SERVICE AND ELECTRONIC DISTRIBUTION SYSTEM IN
THE CITY OF PROSPER, TEXAS .
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PROSPER,
TEXAS :
SECTION 1 . The word "City" as hereinafter used shall mean
and designate the City of Prosper, and the words "Company" or
"Franchisee" as hereinafter used shall mean and designate Star
CATV Investment Corp . "Cable System" or "Cable Communication
System" or "CATV" or "System" as hereinafter used shall mean a
system of coaxial cables or other electrical conductors and
equipment used or to be used to originate or receive television
or radio signals directly or indirectly off the air and to
transmit them via cable to subscribers for a fixed or variable
fee , including the originations , receipt , transmission and
distribution of voices , sound signals , pictures , visual im-
ages , digital signals , telemetry , or any other type of closed
circuit transmission by means of electrical impulses , whether
or not directed to originating signals or receiving signals off
the air . The word "Property" as hereinafter used shall mean and
designate all rights and contracts of whatever kind , and all
poles , wires , cables , apparatus and other appliances , ap-
purtenances and fixtures owned by the Franchisee and located
within the corporate limits of said City.
SECTION 2 . There is hereby granted to the Franchisee the
right , privilege and authority to construct , lay , maintain and
operate , and remove a system of poles , wires , conduits and other
fixtures in , upon and across , along, under and over streets ,
alleys , parkways , public grounds and other places in said City
for the purpose of construction , maintaining and operating a
1,‘" cable television service and electronic distribution system in
the City of Prosper .
SECTION 3 . The franchise hereby granted shall be ef-
fective from and after the date hereof and shall remain in full
.force and effect for a period of fifteen ( 15 ) years upon 2ayment
of the annual fee and tax as hereinafter provided and the said
Company shall have a right or option to negotiate the terms of
this lease for an additional fifteen (15 ) years after the
expiration of the primary term under the same terms and pro-
visions except that the sum paid by the Company for yearly
street rental shall be subject to re-negotiation at the ex-
piration of the primary term between the parties .
SECTION 4 . The Company shall defend the City against all
lawful claims for injury to any person or property caused by the
installation and operation of the Company in the construction
or operation of its property ; and the Company does hereby agree
to indemnify and hold harmless the City from any injury to any
person or property as a result of the installation and operation
• on the part of the Company, its successors and assigns here-
under, in whole or in part , arising out of construction, repair,
extension, maintenance or operation of its equipment of any
kind or character used in connection with its business .
SECTION 5 . The Company shall at all times make and keep
full and complete plats , maps and records showing the exact
location of all cable television service and electronic dis-
tribution system equipment .
11, SECTION 6 . All such installations of equipment shall be
. of a permanent nature , durable and of a location not to
interfere in any manner with the rights of the public or
individual property owners , and shall not interfere with the
travel and use of public places by the public . The City
reserves the right to regulate the erection and construction of
any work by the Company, and to designate where such works and
construction shall be placed . The Company agrees , when re-
quested by the City, to Make changes 'in its distribution system,
in wires , poles , or apparatus to conform to the requirements of
small localized areas , such changes to be effected when so
requested within a rei:sonable time , and further agrees to
comply with such ordinances as the City may now have or may
hereafter pass regulating the installation and maintenance of
such equipment .
SECTION 7 . The Company shall have the right to operate a
cable television service and electronic distribution system
during the existence of this franchise , and have the right to
extend its distribution system upon the streets , alleys and
public grounds of any addition or additions hereafter made to
the City ' s territory and to use the streets , alleys and public
grounds to continue to points beyond the corporate limits of
said City .
SECTION 8 . The Company shall at all times during the
existence of this franchise , maintain and require its con-
tractors to maintain insurance as follows :
(a) Workman ' s Compensation Insurance in accor-
dance with the laws of the State of Texas .
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(b) The Franchisee shall be required to main-
tain insurance in such forms and in such
companies as shall be approved by the City,
such approval not to be unreasonably with-
held , to protect the City and the Fran-
chisee from and against any and all claims ,
injury and damage to person or property ,
both real and personal , caused by the con-
struction , erection, operation or mainte-
nance of any aspect of the System. The
amount of such insurance shall not be less
than the .following : •
General Liability Insurance
Bodily injury per person $100 , 000
Bodily injury per occurrence $300 , 000
Property damage per occurrence $ 50 , 000
Property damage , aggregate $100, 000
(c ) Automobile Liability Insurance with the
limits of not less than $25 , 000 . 00 to any •
person and $50 , 000 . 00 as to any one ac-
cident and automobile property damage in-
surance with a limit of not less than
$10 , 000 . 00 to cover all automobile equip-
ment .
(d) Property damage insurance with a limit of
not less than $5, 000 . 00 .
4111 The Company is and shall be considered an independent contractor
hereunder for all things .
SECTION 9 . Failure or refusal to observe the terms and
provisions of this franchise by the Company, its successors and
assigns , shall entitle the City to cancel and terminate this
franchise and all rights hereunder. The City may exercise such
right ninety (90 ) days after serving notice upon the Company of
410 failure to observe the terms thereof, and upon refusal by the
Company, during the said ninety (90,) day period to perform or act
as required by said notice , this franchise shall be subject to
cancellation as hereinabove provided .
SECTION 10 . All provisions of law provided and prescribed
for the granting of this franchise and authority are hereby
declared to have been fully complied with and the franchise shall
be in full force and effect from and after its execution and
approval . The Company ' s rate shall be as follows :
(a) A schedule of . the maximum rates to be
charged by G:^antee for their services to
subscribers shall be as specified in Appen-
dix "A" attached hereto and incorporated
hereih for all purposes .
(b ) All subsequent changes in said rates shall
be subject to the prior approval of the City
Commission of the City of Prosper, Texas ,
after an appropriate public hearing is held '®
thereon affording due process to all inte-
rested parties .
The Company shall pay the City as a franchise fee , and as
compensation for the rights and privileges enjoyed hereunder,
three percent (3% ) of its gross subscriptions receipts , less
state sales tax, federal excise tax and copyright received by the
Company from all its connections to said cable television
service and electronic distribution system in said City . The
said gross subscription shall be computed quarterly and the
amounts due to City shall be computed quarterly and the amounts
due to City shall be paid on or before the 10th day of January ,
10th day of April , 10th day of July, and 10th day of October .
SECTION 11 . The Prosper Public School System will be
furnished one (1 ) connection each to the designated school
buildings and each connection will be placed in a readily
accessible location , and the schools will be responsible for
service beyond the said free connection, and by requesting said
free connection, the school will hold said Company free of
liability .
SECTION 12 . The Cable Communication System Company (the
Grantee) will maintain adequate personnel necessary to perform
all duties .
SECTION 13 . Provisions of the current requirements for the
system shall be and shall remain in' accordance with the speci-
fications and requirements promulgated by the Federal Communi-
cations Commiss .on , and Franchisee will :
(a) Limit failures to a minimum by locating and
correcting malfunctions promptly, burin no
event longer than forty-eight (48) hours
after notice , unless such failures are
caused by the acts of God, or circumstances
beyond the control of the Franchisee .
(b ) Demonstrate by instruments and otherwise to
subscribers that a signal of adequate
strength and quality is being delivered and
41. meets all relevant specifications of the
Federal Communications Commission and oth-
er applicable federal , state and local reg-
ulations . The commission may require proof
of calibration of such test instruments if
deemed necessary in order to arbitrate ' a
specific complaint .
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SECTION 14 . The franchise granted by this ordinance cannot
06 in any event be sold , transferred , leased, assigned or disposed
of as a whole or in part ; : or otherwise, without prior consent of
the City expressed by Resolution , and then only under such
conditions as may be prescribed in the consenting Resolution ;
provided , however, that no such consent shall be unreasonably
withheld , and further provided that no such consent shall be
required for any transfer in trust, mortgage or other hy-
• pothecation, as a whole or in part; to secure an indebtedness .
There shall be no restriction upon the transfer of this franchise
' to a controlled subsidiary or to a parent corporation .
SECTION 15 . All installation costs of the Cable Com-
munications System Company shall be paid by the Company itself
and not by the City .
SECTION 16.. The rights, privileges and franchise granted
hereunder shall automatically terminate if Grantee has not
diligently pursued and made all reasonable efforts to secure
approval of its applications with the Federal Communications
Commission to bring cable television to Prosper, Texas .
S
SECTION 17 . The Grantee will , upon seventy-two (72) hours
request and payment. in advance of a reasonable charge , which
charge shall be subject to review at any time by the City
Council , adjust , raise or lower its wires temporarily to permit
the moving of houses or other bulky structures . The minimum
height of all wires shall be eighteen (18) feet over streets and
alleys and public places or conform to all applicable codes which
may now Oe in effect or become effective hereafter . The Grantee
may trim trees upon and overhanging the said streets , alleys,
sidewalks and public places to the extent reasonably necessary
to prevent the branches from coming into contact with the wires
or cables of the Grantee, under the supervision of the City
Manager of the City of Prosper, Texas , at the .expense of the
Grantee .
SECTION 18 . To the extent allowed by law, this is an
exclusive franchise for a period of two (2) years from this date
and City will not grant a franchise to any other person for a
cable system during that period of time . In the event that
Franchisee has not completed construction of the system and
commenced operation within two (2) .years from this date , this
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franchise will terminate and become null and void and of no
further force or effect .
PASSED, APPROVED AND ADOPTED this the �a _ day of
, 19 80 .
4/611. '
•
AYOR
. ATTEST :
ty Secretary
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.L.APPENDIX "A"
Tier 1: Basic Service
Cost: $8 .95 per month
Tier 2 : Basic Service, ESPN, Nickelodeon, HBO or Showtime
Cost: $19.95 per month
Tier 3: Basic Service, ESPN, Nickelodeon, both HBO and Showtime,
Cinemax or The Movie Channel
111 Cost: $29 . 95 per month
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Installation charge per household - $25 .00
Each extra set - $2 .00 per month, each
Installation charge, extra set - $7 . 50
Charge to move connection - $15 .00
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VIP •