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0357 (Cable TV Franchise)r AN ORDINANCE GRANTING FRANCHISE TO OkeAirCo Inc., CABLE TELEVISION OF OKEECHOBEE, TO OPERATE A COMMUNITY ANTENNA TELEVISION SYSTEM IN THE CITY OF OKEECHOBEE, FLORIDA; REGULATION OF IT'S OPERATION, RATES, PAYMENTS, SERVICE, CONSTRUCTION, AND MAINTENANCE; CONTAINING CERTAIN PROHIBITIONS: PRESCRIBING CERTAIN PENALTIES; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE GOVERNING BODY OF OKEECHOBEE, FLORIDA: Section 1. Short Title. This Ordinance shall be known and ;may be cited as OkeAirCo Inc. Cable Television of Okeechobee Fran chise Ordinance. Section 2. Definitions. For the purpose of this Ordinance, the following terms, phrases, words, and derivations shall have the meaning given herein. When not inconsistant with the context, 'words used in the present tense include the future, words in the plural number include the singular number, and words in the sing - ular number include the plural number. The word "shall" is always mandatory and not merely directory. a. "State" is the State of Florida. b. "City" is the City of Okeechobee, Florida. c. "Company" is OkeAirCo Inc. .Cable Television of Okeechobee, a Florida Corporation, the grantee of rights under this Franchise Ordinance. d. "Governing Body" is the City Council of Okeechobee, Flor- ida. e. "Person" is any person, firm, partneship, association, corporation, company, or organization of any kind. f. "System" shall mean the lines, fixtures, equipment, at- tachments, and all appurtenances thereto which are used in the construction, operation and maintenance of the community antenna television :system herein authorized. Section 3. Grant of Authority. There is hereby granted by "the City to the Company the right and privilege to construct, erect, 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 extensions thereof and additions thereto in the City, wires, poles, cables, underground conduits, ,conductors and fixtures necessary for the maintenance and opera- ,; jition in the City of a community antenna television system for the reception and distribution of television signals and energy, frequency modulated radio signals, and commercial visual and aural signals which are not otherwise herein prohibited. The Company shall have the right in the operation of the system to make attach- ments to City -owned property at such rates and upon such terms rand conditions as shall from time to time be determined by the governing body. The rights herein granted shall extend'to any area annexed to the City and the Company shall be bound by the Ii same rules and regulations as to such area as are otherwise herein or hereafter provided. The right to use and occupy said streets, alleys, public ways ;and places for the purposes herein set forth, shall not be exclu sive, and the City reserves the right ';o grant use of streets, j; alleys, public ways and places to any person at any time during the period of this Franchise Ordinance. The Cc7npany shall have the right to enter into agreements hfor the attachments onto and use of facilities owned and operated rby public utilities operating with the City, whereby the Company shall strictly comply with the terms, provisions and restrictions of said agreements, and copies of all agreements made with other public utilities operatinc within the City shall be placed on file with the City Clerk's office immediately upon their execution. Section 5. Company Liability and Indemnification. a. Liability Coverage. It is expressly understood and agreed by and between the Company and the City that the Company shall save the City harmless from all loss sustained by the City on account of any suit, judgement, execution, claim, or demand Iwhatsnever arising out of the construction, operation, and main- tenance of the system by the Company. The Company agrees to main- tain and keep in full force and effect at all times during the term of this Franchise Ordinance sufficient; lial lity insurance coverage to protect the City against any such claims, suits, ,judgements, executions, or demands in a sum not less than $100,000. 100 per person in any one claim, $300,000.00 as to any one accident or occurance, and not less than $100,000.00 for property damage as to any one accident or occurance. 2 b. Workmen's Compensation Goveratve. The Company shall also ;maintain in full force and effect throughout the duration of this Franchise Ordinance sufficient workmen's compensation insurance coverage to adeauateli and fully protect it's agents and employees' as required by law. c. Permanent Payment and Performance Guarantee. The Company ;shall furnish a bond to the City in the sum of $1,000.00 which shall remain in full force and effect throughout the terms of this Franchise Ordinance to guarantee the payment of all sums which may ,become due to the City for rentals, inspections, or work performed for the benefit of the Company under this Franchise Ordinance by any of its provisions, and such bond shall guarantee to the City ithe performance by the Company of an provisions of this Franchise Ordinance and all laws, rules, and regulations herein permitted to be adopted and enforced, upon acceptance of Franchise by Company. d. Resident Company and Agent. All insurance policies and bonds as are required of the Company in this Franchise Ordinance shall be written by a company or companies authorized and qualif- ied to do business in the State. .Certificates of all coverage requ Tred shall be promptly filed by the Company with the city. Section 6. Conditions on Street Occupancy and System Construction. a. Use. All transmission and distribution structures, lines and equipment erected by the Company within the City shall be so ;;located as to cause minimum interference with proper use of streets, 'alleys, and other public ways and places and to cause minimum ;interference with the rights or reasonable convenience of property Downers who adjoin any of said streets, alleys, or other public ways and places. b. Restoration. In case of any disturbance of pavement, j; sidewalks, driveways, or other surfacing, the Company shall, at nits own expense and in a manner approved by the City, replace and restore such places :o disturbed in as good condition as before is said work was commenced, and shall maintain the restoration in a 1 condition approved by the City for the full period of this Fran - f chise Ordinance. c. Relocation. the event that at any time during the period of this Franchise Ordinance the City shall lawfully elect ,,to alter or change the grade of any street, alley, or other public !way, the Company, upon reasonable notice by the City, shall re- move, relay, and relocate its equipment at its own expense. d. Placement of Fixtures. The Company shall not place any 'fixtures or equipment where the same will interfere with gas, electric, telephone or water lines, fixtures, and equipment, and location by the Company of its lines and equipment shall be in such manner as to not interfere with the usual travel on said streets, alleys, and public ways and the use of the same by gas, slectric, telephone and water lines and equipment. e. Temporary Removal of Wires for Building Moving. The Company shall, on the request of the City temporarily raise or low- ier its wires to permit moving of buildings. f. No Property Right. Nothing in this Franchise Ordinance ;shall grant to the Company any right to property in City owned property, nor shall the City be compelled to maintain any of its property any longer than, or in'any fashion other than in the Citry's judgement its own business or needs may require. g. Permits, Easements, and Agreements. The City shall not be required to assume any responsibility for the securing of any right -of -way or easements, nor shall the City be responsible for ;,securing any permits or agreements with other persons or utilities. Section 7. Construction Approval by City Correction of Defects. Except for individual service drops, j the Company shall not erect any pole, run any line, make any attach ment, nor shall any construction of any kind be commenced without the prior approval of the governing body, and the City shall have and maintain the right to inspect the construction, operation, ,maintenance of the system by the Compai.ly to insure the proper performance of the terms of this Franchise Ordinance. In the event the Company should violate any of the terms of this Fran- chise Ordinance or any of the rules and regulations as may be from time to time lawfully adopted, the City shall immediately give to the Company ninety (90) days written notice to correct - 4 - such violation, and in the event the Company does not make such correction within ninety `90) days from receipt of such notice to correct such violation, and in the event the Company does not make such correction within ninety (90) days from the receipt of such written notice, the City may make such correction itself and charge the cost of same to the Company. Section 8. Number of Channels. The Company will install for is the operation of the system in the City an ALL CHANNEL SYSTEM capable of transportinrr and relaying all twelve VHF channels, and ;'the Company shall place into operation not less than five channels !available to subscribers to this system in the City and the Compay will continue to maintain and relay to the subscribers to this system in the City not less than five channels, unless the trans- mitting television station or stations ceases or curtails its transmission by act of God or other cause not within the control ijof the Company. The Company shall make the national television networks ABC, NBC, and CBS available. Section 9. Regulated Public Utilities. The Company shall not 'ruse the system to ,interfere or conflict with services offered by public utilities regulated by the State. regulated Section 10. Minimum Reception Standards. The licensee shall establish and guarantee minimum technical reception standards at the terminals of each television set serviced, said standards to CouociL Obe approved by the .Q4,414-81,6 The following minimum technical I! reception standards are herewith established: ji (a.) The licensee shall maintain and operate the system and render efficient service in accordance with the rules and rec,ulat- ions established or to be established by the Tan, provided, however, the licensee shall operate the system so that there will be no interference with television reception, radio reception, telephone communications or other installations which are now or Ci7Y may hereafter be installed and in use by the or any persons in the �T (b.) The licensee shall carry all signals of every television station where the community antenna television system tower or (towers and antenna equipment are lflcated within the Federal Com- ti - 5 - AIIIMMOINIMINNO munication Commission approved predicted Grade B contour line of that tel:- rision station. The t levision signals at no time shall be altered, interrupted, or blacked out in any way be the licensee. (c.) The licensee shall provide and maintain at all times: 1. All -band equipment, capable of passing the entire T VHF television and FN radio spectrum. 2. Equipment that passes standard color television signals without degradation and with no phase shift and no effect on :;olor fidelity and intelligence. 3. A minimum level of 1,500 microvolts at the input terminals of each TV receiver on the line. 4. A system and all equipment designed and rated for 24-hour a day continuous operation. 5• A signal -to -noise ratio of not less than forty -six decibels. 6. A television signal with a hum modulation less than three percent. ?. Components having voltage standing wave ratio of ;4 or less. 8. A inter - modulation distortion not to exceed minus forty -six decibels. 9. A plot of gain versus frequency across any six megacycle channel of a flat plus or minus one decibe: (d.) The licensee shall provide and keep accurately cali- brated test equipment on hand in the e.122:4t, at all times for the j; testing of all service and operational standards outlined herein and shall conduct tests as requested by the qty under the super - vision of a;44;4 representative in order to establish the level of performance of the system. (e.) The licensee shall render efficient service, make re- pairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions insofar as possible .shall be preceded by notice and shall occur during periods of min- i �imum use of the system. Section 11. Company Rules. The Company shall have the auth 1 ; oorty to promulgate such rules, regulations, terms, and conditions - 6 - governin`I the conduct of its business as shall be reasonably nec- essary to enable the Company to exercize its rights and to perform its obligations under this Franchise Ordinance and to assure an II } uninterrupted service to each and all its customers, provided, however, that such rules, regulations, terms and conditions shall' Fnot be in conflict with the provisions hereof and shall be subject ,to the approval of the governing body. { Section 12. Rates to Customers. The Company shall have the right to char.ire and L.ollect compensation from all persons and corporations who subscribe to Company's services, based. upon the ;following schedule: (a.) No installation fee before or during installation of the system. ii (b.) $9.95 installation fee through the first year of operation. (c.) $20.00 installation fee may be charged for all instal- lations or hook -ups after the first year of operation. (d.) Single family units - $60.00 per year for a one service outlet to be paid in advance. The customer may elect to pay the H yearly fee at $5.50 per month, hence paying a total yearly fee of $66.00. The difference of $6.00 per year represents additional costs of bookkeeping and billing. In the event a single family unit or its equivalent desires more than one outlet, there shall be an additional annual charge of $24.00 per outlet per annum. (e.) Apartments and other multi. -f ar:1 1 \r units rented to trans hients or seasonal visitors shall, after the first standard service of $60.00 per year $33. ©0 per year or or 5.50 per month, be charged at the rate of $2.75 each month for each additional outlet of service. (f.) The above fees allow a lead -in of 100 feet from the e €- I I isting distribution system to customer dwelling. Installations ;requiring additional lead -in shall be billed on an individual basis. IL (g.) For the purpose of this Agreement, each unit of a coop- erative apartment, duplex apartment, or other multi - family unit normally occupied on a permanent basis, shall be considered as a single family dwelling. h.) For the purpose of this Agreement, it should be noted that multi - family for service under or apartment type dwellings in (e) are wired separate negotiated contract and that the $20.00 installation fee is to bring only one service to the premises. (i.) The rates, above described during the term altered upward only after conditions, specifications and agreements and listed shall remain in full force and effect of this Agreement; said rates may be changed or by a majority vote of the City Council, but then one month's written notice has been given to the City. (j.) In the event the Company is required to pay any type of tax not now required to be paid, or is required to pay any fee or ;compensation to the American Society of Composers, Authors and !Publishers (A.S.C.A.P.), Broadcast Music, Inc. (B.M.I.) or any Ii other similar organization, or to any holder or owner of copy - i righted material, the Company may bill its subscribers for such 'tax or fee in addition to its yearly service charge. Section 13. Preferential or Discriminatory Practices Prohibite The Company shall not, as to rates, charges, or regulations, make giant any preference or advantage to any person, nor subject any person to any prejudice or disadvantage. Section 14. Payment to the City. a. Gross Revenue Taxes. The Company shall pay to the City La tax or fee from the gross revenue received by the Company from the operation of the system which shall from time to time be set Eby the governing body, for a period of the ,chile Ordinance and renewal terms duration Hereafter, to the City five (5) percent of the gross the revenue of this Fran- Company shall pay received by the !Company from the operation of the system. Thereafter, the rate 'shall continue, unless a new rate is mutually agreed upon by the City.and the Company. Defining the Company obligation hereunder the gross revenue received by the City shall be on all g ,� y payments made by subscribers within the Corporate City limits. b. Manner of Payment. All payments as required by the Com- pany to the City shall be made quarterly and shall be due within thirty (30) days after the close of the preceding three month period. - 8 - Section 15. Reports. A semi- annual summary report showing gross revenues received by the Company from the operation of the Hystem within the City during the preceding six months g period and such other information as the City may require in support of same shall be given to the City by the Coin any. Section 16. Transfer Prohibited. The Company shall not sel Hpr transfer its plant or system or any portion thereof, nor right title, or interest in the same, nor shall the Company transfer an: rights under this Franchise Ordinance to any other y person without prior approval of the governing body. Section 17. Penalties. Should the Company, its successors ]or assigns, violate any of the provisions of this Franchise Ord - liinance or any reasonable rules and regulations or other laws, or {should the Company fail to promptly perform any of the provisions I • hereof, the Company shall forfeit all its rights hereunder to the City after written notice to the Company and continuation of such ii violation, failure or default for a period of more than ninety C9C days. In the event the Company is adjudged bankrupt, all rights herein given to the Company shall, at the option of the City, be it forfeited and terminated. Section 18. Separability. In the event any section or part of this Franchise Ordinance shall be held invalid, such invalidity shall not affect the remaining sections or portiions of this Fran- chise Ordinance. If the terms of this Franchise should conflict with any laws or regulations now in effect or hereinafter adopted by the Federal Communications Commission (or any other governments agency now existing or to be formed issueing rules and regulation affecting telecommunications) the State or. the United States Gover ment, compliance by the Company with such rules shall not cause a• forfeiture of this Franchise. Section 19. Service to the City. The Company shall provide one free connection to a municipally owned or leased building within the corporate limits of the City, not supplied unless it is agreed with mutual parties. Section 20. Effective Date - Acceptance by Company. This - 9 Ordinance shall become effective thirty y (30) days after its adop- tion by the governing body. Upon the adoption of this Ordinance, the Company shall file with the City Clerk its written acceptance 'of the terms, provisions, and conditions of this Franchise Ord - linance within thirty (30) days after said adoption. Otherwise, this Franchise Ordinance shall be void and of no effect, and the !Franchise rights, privileges and authorities given the Company hereunder shall cease. This Ordinance is null and void if the Company has not begun operation and transmission within twelve (12) months of the effective date of this Ordinance. Section 21. New Developments. It shall be the policy of the 'City liberally to ammend this Franchise upon application of the Ilgrantee, when necessary to enable the grantee to take advantage !of any developments in the field of transmission of television, 1 !radio and cable television, which will afford the grantee an opportunity more effectively, efficiently, comprehensively or economically to serve its customers; provided, however, the grantee so accepts said ammendment in writing and that the section shall not be construed to 'require the City to make an ammendant. Section 22. Duration of Franchise Ordinance. This Franchise Ordinance shall remain in full force and in effect for a period of ten (10) years and shall be subject to option renewal by the City by negotiations with the City for additional ten (10) year periods, not to exceed two (2) ten year periods, or a total length of this Franchise Ordinance of thirty (30) years. Section 23. Sale of System. The City reserves first refusal option on the purchase of the system should it be offered for sale during the 30 year maximum life of this franchise, and fur- ther the City reserves the right and requires the grantee, as a condition precedent to the taking effect of the grant, to give and grant to the municipality the right and after the expiration of such term to purchase the system and other property used under or in connection with this franchise, or such part of the property as the municipality may desire to purchase at a valuation of the property, real and personal, desired, which valuation shall be fixed by arbitration as may be provided by law. ii 'or parts of Ordinances in conflict herewith are to the extent of Section 24. Repeal Conflicting Ordinances. All Ordinances dsuch conflict hereby repealed. Passed this 6th day of July , AD, 1971 I Attest: 7 City Cierk Okeechobee, Florida President of City Council By: t��CC� A140-\_ Mayor /