Loading...
HomeMy WebLinkAbout3981AN ORDINANCE OF THE CITY OF BREMERTON, GRANTING A NON EXCLUSIVE FRANCHISE TO CONSTRUCT, INSTALL AND OPERATE LINES, WIRES, COAXIAL CABLE AND APPURTENANCES FOR ORIGINATING, RECEIVING, DISTRIBUTING AND SUPPLYING RADIO, TELEVISION AND OTHER CABLE COMMUNICATION SERVICES ALONG, ACROSS AND UPON THE PUBLIC'S STREETS, WAYS, ALLEYS, AND PLACES WITHIN THE CITY OF BREMERTON. THE CITY COUNCIL OF THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS: Section 1: Purpose. This franchise shall constitute an agreement between the City of Bremerton and Olympic TV Cable, Inc., (hereinafter the "Operator"). The Operator promises to construct, maintain, and operate a cable television system for the distribution of television and other electronic signals pursuant to the terms of this franchise. The City agrees to grant the Operator all rights and privileges to use public rights of way necessary for a cable television system. This agreement shall, as of Oc~~ ~ ~ , if previously accepted by the Operator, supersede and replace all existing franchises previously granted by the City of Bremerton to the Operator or any of its predecessors, subsidiaries or affiliated companies. Section 2: Length of Franchise. The length of this franchise shall be for a term of ten (10) years from ~0~ ~` \~ through midnight ~\ ~ /~g- Section 3: Terms of the Franchise. This franchise granted to the Operator, shall not be deemed exclusive and shall not in any manner prevent the City of Bremerton from granting other franchises. The Operator agrees to all the valid terms, conditions, requirements, obligations, and duties as outlined in Ordinance No. ~ dated ~ ~l 19~' , __, of the City of Bremerton (hereafter "Cable Communications Regulatory Ordinance"). All terms used hereunder and not defined, shall have the same meaning as in the Cable Communications Regulatory Ordinance. Section 4: Service Area. The Operator's service area shall be the incorporated areas of the City of Bremerton as outlined in the map contained in the Operator's proposal. Section 5: Rates. Operator will file with the City a complete schedule of all rates to be charged to subscribers, including but not limited to: (a) Installation of Basic Service. (b) Periodic charges for Basic Service. (c) Installation of Premium Service. (d) Periodic charges for Premium Service. (e) Installation of FM service. (f) Periodic charges for FM service (including rates for FM service as a primary service). (g) Charges for relocation and reconnection. (h) Converter charges. (i) Charges for parental control keys. --2-- Installation charges for bulk/commercial service. (k) Periodic charges for bulk/commercial service. (1) Installation charges for additional outlet service. (m) Periodic charges for additional outlet service. (n) Discounts for multiple premium services, etc. (o) Interactive service charges. (p) Extended drop installation charges. (q) Teletext type service and equipment charges. (r) All other charges. The Operator will notify the City in writing of all such modifications in said rates. The rates charged to subscribers for nonpremium programming shall be no more than $11.95 (Eleven dollars and ninety-five cents) for the period from the date of this franchise agreement until December 29, 1986. The programming of such services shall consist of Community Programming, CBUT, KOMO, KING, KIRO, KCTS, KSTW, KVOS, KCPQ, KTBW, KTPS, KTZZ, WTBS, ESPN, CNN, Nashville, USA, MTV, Lifetime, CNN II or equivalent programming recognizing also the necessity to comply with present and future Federal Communications Commission regulations and the provisions of Sections 624 and 625 of the Cable Communications Policy Act of 1984. Section 6: Franchise Fee. The Operator shall pay the City quarterly, on or before the tenth (10th) day of each January, April, July and October, a sum equal to five percent (5%) of the Gross revenues of the Franchisee. --3-- The Operator will estimate its total gross revenues for each quarter. At the end of the year a final report will be submitted together with final adjusted payment for the year no later than forty-five (45) calendar days after the relevant computation date. Interest shall be paid at a rate of twelve percent (12%) per annum on any variance in the final report that resulted in quarterly underpayment(s). Each payment shall be accompanied by a financial report showing the basis for the computation separately showing revenues received within the City from basic service, pay service, installations, second outlets, converter charges, advertising, other sources of revenue and such other relevant facts as may be reasonably required by the City. The City shall have the right, and reasonable time, to inspect the books and records of the Operator for the purpose of ascertaining the actual Subscriber charges. No acceptance of any payment shall be construed as a release of any claim the City may have for further or additional sums payable under the provisions of this Ordinance. All amounts paid shall be subject to audit and recomputation by the City. In the event that recomputation results in additional amounts due, such additional fees shall be subject to a twelve percent (12%) interest charge computed from such times as the amount should have been paid. --4-- Nothing in this section shall limit the Operator's liability to pay applicable local taxes. This reservation includes, but is not limited to any applicable amusement taxes, business and occupation taxes, utility and property taxes. Section 7: System Capability. Franchisee shall provide the minimum of a 300 MHz system capable of thirty-five (35) channels. Such system will be fully operational no less than twelve (12) months from the date of the award of the franchise. Furthermore, at such time as thirty percent (30%) of other systems of similar demographics, as determined by trade reference books, have installed or are upgraded to a 400 MHz operation, then the City Council may direct the Franchisee to make a similar upgrade capability. Such system will be completed within eighteen (18) months of such notification to Franchisee. Section 8: Addressability. The Franchisee will install and maintain addressable equipment in the City if technologically desirable and economically feasible. This system will be capable of handling billing, connects and disconnects, program charges and pay per view programming by devices within the subscriber's residences. Addressable equipment (which may include converters for eligible subscribers) will be installed within twelve (12) months from the granting of the franchise. --5-- Section 9: Other Interactive Services. The Franchisee will install an interactive system available to all subscribers. This system may provide such services as security, computer interaction, banking, shopping, etc. on a "two-way" basis. This facility shall be provided at such time when thirty percent (30%) of other systems of similar demographics as determined by trade reference books have installed such systems. Section 10: Allocation of Costs. Costs that another franchisee has incurred for access equipment, training, interconnect, and franchising costs shall be reimbursed by Olympic TV Cable, Inc. on a pro rata basis. Such arrangements shall be between the franchisees themselves. Section 11: Acceptance. This grant of franchise and its terms and provisions shall be accepted by the Operator by the submission of attached written instrument, executed and sworn to by a corporate officer of the Operator before a Notary Public, and filed with the City Clerk within forty-five (45) days after the date of this franchise award. Such instrument will constitute the unconditional acceptance of this franchise and the promise to comply with and abide by all its provisions, terms and conditions. Section 12: Effective Date. This ordinance shall be in effect thirty (30) days from and after its passage and publication, provided, however, the franchise granted by --6-- this ordinance shall not become effective until franchisee files written acceptance thereof. APPI~OVED (~N first reading this ~-" day of ~¥~ , 1985. PASSED by the City Council, City of Bremerton, signed by the Mayor and attested by the Ctiy Clerk in authentication of such passage this ~ day of ~ ~ ~\~.~ \-~.~.~ , 1985. tVI2~I~E BAIa~N8, Mayor City of Bremerton ATI'EST: KA~F~k~N L. iV~CLUSKEY, City C~erk Director of Administrative Services