HomeMy WebLinkAbout1968- 3 Granting Franchise by the TOV to Community Television Investment Incorporated~~ ~ ~ i
ORDINANCE NO, 3
Series of 19b~
AN ORDINANCE GRANTING A FRANCHISE BY THE TOWN OF VAIL TO
COMMUNITY TELEVISION INVESTMENT, INCORPORATED ,ITS SUCCES-
SORS AND ASSIGNS, TO OPERATE AND MAINTAIN A COAXIAL CABLE SYS-
TEM IN THE TOWN OF VAIL FOR THE PURPOSE OF FURNISHING AND SEL-
LING PICTURES AND SOUNDS BY CABLE, SOMETIMES KNOWN AS COMMUN-
ITY ANTENNA TELEVISION: PROVIDING TERMS, CONDITIONS AND REGULA-
TIONS IN CONNECTION THEREWITH: AND PROVIDING PENALTIES FOR THE
VIOLATION THEREOF.
BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF VAIL,
COLORADO:
Section 1. Definitions
For the purposes of this Ordinance, the following teams
phrases, words and their derivations shall have the zx~eaning given herein. When
not inconsistent 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 singular number include the plural number. The word "shall" is always
mandatory and not xx~erely directory.
(1) "Town" is The Town of Vail, Colorado.
(Z) "Company" is Cammunit~r Television Investix~.ent, incorporated.
~3) "Bard of Trustees" is The Board of Truster s of the Trrwn of
Vail, Colorado.
(4) "Person" is any person, firm, partnership, association, cor-
poration, company or organization of any kind.
Section 2. Grant of Authority
Thy. fratzchise and right is hereby granted by the Town
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to the Company, its successoxs and assigns, to construct, operate and main-
Lain, in, upon, along, across and under the streets, alleys, public ways and
public places, now ox hereafter included in the boundaries of The Tawn, wires,
cables, underground conduits, manholes, and other television conductors,
amplifiers and fixtures necessary for the maintenance and operation in the
Town of a coaxial cable system for the interception, sale, and distribution of
television and other signals, and to furnish, sell and distribute said services
twenty-four hours each day, if available, to the inhabitants of the Town.
Section 3. Non-Exclusive Grant.
The right to use and occupy said streets, alleys, public
ways and public places for the purposes herein set forth shall not be exclusive
and the Town reserves the right to grant a similar use in said streets, alleys,
public ways and places to any other person.
Section 4. Compliance with Applicable Laws and Ordinances.
The Company shall at all times during the life of this
Franchise, be subject to all lawful exercise of the police power by the Town
and shall comply with all current Federal, State and '.~ own laws, regulations,
ordinances and resolutions a;~plicable thereto, and ail laws, ordinances and
regulations hereafter passed or adopted, including without limitation, the pay-
ment of all applicable use, sales and occupational taxes.
Section 5. Conditions of Street Occupancy.
(a) Use -All transmission and distribution structures,
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lines and equipxx~ent erected by the Company within the Town shall be so located
as to cause ix~.iniznum interference with the proper use of streets, alleys and
other public ways and places, and to cause minimum interference with the
xights or reasonable convenience of property owners who adjoin any of the said
streets, alleys ax other public ways and places.
(b) Restoration - In case of any disturbance of pavement,
sidewalk, driveway or other surfacing, the Company shall, at its own cost and
expense and in a manner approved by the Board of Trustees or their duly appoin-
ted representative, replace and restore all paving, sidewalk, driveway or
surface of any street or alley disturbed, in as good condition as before said
work was cozx~xx~enced and in compliance with any Qrdinance of the Town regu-
lating the repair and restoration of streets.
(c) Relocation - In the event that at any time during 'the
period of this Franchise, the Town shall lawfully elect to altex, or change the
grade of any street, alley ox other public way, The Company, upon reasonable
notice by th^. Town, shall remove, relay and relocate its wires, cables, under-
ground conduit, manholes, and other fixtures at its own expense.
(d) Placerr~ent of Fixtures -Any poles, wires, cable,
lines, vaults, conductors, installations or fa~~ilities to be constructed or instal- `
led in streets or public ways shall be so constructed or installed only at such
locations and in such manzler as are approved by the Board of Trustees or their
duly authorized representative. .!ail wires and cables shall be placed underground,
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unless exceptions are specifically provided for by the Berard of Trustees or
their duly authorized representative.
(e) The Company shall file with the Baard of Trustees
a Plat showing the location of all facilities; and shall keep said plat current.
Section b. Company Ruies.
The Company shall have the authority to promulgate
such rules, regulations, terms and conditions governing the conduct of its
business as shall be reasonably necessary to enable the Corx~pany to exercise
its rights and perform its obligations under this franchise and to assure an
uninterrupted service to each and all of its custorr~ers; provided, however,
that such rules, regulations, terms and conditions shall not be in conflict with
the provisions hereof or the laws of the State of Colorado and shall be subser-
vient to the general application of this franchise and regulations adopted with
regard hereto pursuant to Section ~ hereof.
Section 7. Company Liability -.Indemnification -_Liability Insurance
The Company hereby expressly agrees that it will hold
and keep harmless the Town from any suit, judgment, execution, claim or
demand whatsoever which may be asserted or recovered against it during the
construction, maintenance and operation of the television system or any part
thereof. This will be guaranteed to the Town by a public liability and pxoperty
damage policy naxning the Town as co-insured and approved by the Town in
the amount of $100, 000. 00/$300, 000. 00 public liability and $25, 000.00/$50, 000. 00
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property damage, to be negotiated and paid for by the Company. Certificate of
coverage shall be provided the Town and the Town shall be notified by the insurer
thirty days in advance of any cancellation or termination of any such policy.
Section 8. Surety Bond.
The Company shall, concurxently with the acceptance
of the Franchise provided far under this Ordinance, file with the Town Clerk,
and at all tunes thereafter maintain in full force and effect while this Franchise
is in existence, at the Company's expense, a corporate surety bond, in a
Company approved by and in a form approved by the Board of Trustees, in the
amount of $10, 000. 00, renewable annually, or deposit with the Tawn cash or
United States bonds in the amount of $10, 000. 00, the Company to receive all
interest therefrom, and conditioned upon and for the faithful performance by
the Company of all of the conditions in and requirements and obligations imposed
upon the Company by this Ordinance and for compliance with all the provisions
of this Ordinance. The bond shall contain a provision that sixty (60) days
written notice of intention not to renew, cancel ox other matexial change be
given to the Tawn. After this Franchise has been in effect for two years, the
Company may request the Town to waive the corporate surety bond requirement
set forth herein. The Town shall have the right to grant such request by resolu-
tion.
Section 9. Defense of Suit by Company.
The Company shall at its own expense, defend all suits
that may be brought against the Town on accou~it of the cable television business,
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or any part thereof, of the Company, including copyright infringements, patents
or like violations and shall keep harmless the Town from any and all damages,
judgments, costs and expenses of every kind growing out of or connected with
said business.
Section 10. Rates.
Rates charged by the Company fox service hereunder
shall be fair and reasonable and designed to meet all necessary costs of the
service, including a fair rate of return on n.et valuation of its properties
devoted thereto under efficient and economical xnanagernent. The Company
agrees that it shall be subject to all authority now or hereafter possessed by
the Town or any other regulatory body having competent jurisdiction to fix
just, reasonable and compensatory television ox other signal distribution
rates. When this franchise takes effect and fox five years thereafter the
Company shall have authority to charge and collect not to exceed the follow-
ing schedule of rates. At the end of five (5} years the rate structure shall be
renegotiated ,between the Company and the Town. If the Company and the
Town cannot agree on what constitutes a reasonable rate structure based
upon reasonable rate of return as applicable to the CATV industry generally,
said matter shall be submitted to arbitration in accordance with rules and
regulations of the American Arbitration Association.
Schedule for Installation and Service. Charles
(A} Installation Charges:
$50.00 far residential installation. Additional outlets within the
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same living unit, if occupied by the same family, shall be billed
for the material and labor required to make the installation of the
additional outlet or outlets.
$Z5. 00 for installation of the first outlet in each condominium
apartment with additional outlets installed on a time and material
basis.
$25. 00 for installation of the first outlet in txailers, multi-family
units or business establishments. Additional outlets will be instal-
led on a time and material basis.
$10. 00 for installation of each outlet in lodges, motels or like
establishments.
(B) Service Charles:
1. $90. 00 per year service charge for each residential, trailer,
apartment or business establishment installation with $1.50 per
month charge for the first additional activated outlet and $].. 00
per month far other additional outlets. Or - -
$S. 00 per month for less than year use for residential service
with additional outlet service charges as noted above.
2. $15. 00 per month for a minimum of two outlets in lodges,
hotels axed motels with following schedule of additional outlets:
3 ~- 10 $3.50 per month
11 - 30 $2. 50 per month
31 - 50 $2. 00 per month
51 - 75 $1.50 per month
over 75 $1.00 per month
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3. Reconnections: $1Q.00 - A ane time charge for reconnection
of any residential, condominium, trailer or business establiah-
meet installation:
Section il. Service Standards.
The Caxnpany shall maintain and operate its system
and render efficient service in accordance with the rules and regulations as
set forth herein:
(1) Notice of Interruption for Repairs.
Whenever it is necessary to shut off~or interrupt
service for the purpose of making repairs, adjustments ox installations, the
Gompany shall do so at such time as will cause the least amount of inconven-
fence to its customers, and unless such interruption is unforseen and imxned-
iately necessary, it shall give reasonable notice thereof to its customers.
(2) The Company shall not, as to rates, charges, service facilities,
rules, regulations or in any other respect, make ar grant any preference or
advantage to any person, nor subject any person to any prejudice or disadvan-
tage, provideci that nothing in this Franchise shall be deemed to prohibit the
establishment of a graduated scale of charges and classified rate schedules
to which any customer corning within such classification would be entitled.
(3) The Company's cable televiaian service shall be made available
in every part of the present "'own limits. The Company's Cable Television
Service shall be made available in every part of the future Town limits,
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except in those areas, if any, where it appears that there are not sufficient
potential users to make the installation and operation of the system econ-
omically feasible.
{4) The CorYipany shall maintain an office in or near the Town and
provide a maintenance and repair sexvice readily available through telephone
or other xxleans in the Town to its subscribers duxing all hours that signals
are being transmitted. Signals sha11 be transmitted not less than 15 hours
each day commencing at 8:00 a. m. and ending not earlier than 11:00 p. rn.
each day, The Company shall not discrirx~inate between persons or areas
and its services shall be equally available.
{5) The system shall be designed for color television and, if any
changes are required to be made for color television, they shall be made at
the expense of the Company.
{b} A committee of three qualified persons shall be selected, one
by the Board of Trustees, one by the Company, and one by the two members,
to view the quality of the television picture, and act as liaison between the
Board of Trustees and the Company in matters of picture quality and customer
satisfaction.
Nothing in this Franchise shall be construed to mean that the Company shall be r
responsible for any interruption of signal or service arising from an "Act
of God", strikes, riots, acts of a common enemy or far any other reason
beyond fhe control of the Company.
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Section 12. Multi»Channel Service.
The cable television system operated by the Company
shall delivex satisfactoxy television signals fronn at least the following televi-
lion networks, stations or sources:
1. ABC Network, Denver Statian
2. NBC Network, Denver Station
3. CBS Network, Denver Station
4. National Educational Television Network
5. Local origination weather and public service
channel.
Section 13. Local Channel.
The Connpany shall provide facilities in the "head end"
building or other suitable location for the origination of public service programs
to be delivered as a part of the services offered to subscribers.
Section 14. Use of Svstem by Town.
{a} The Company shall without charge, upon request,
therefore, provide and furnish to the Town, each fire station located in the
Town, each public or private elementary and secondary school located in the
Town, the following:
(1) One service outlet for main regular channel televi-
sion reception furnished by the Company.
(2} An. additional outlet in each room or area where
television reception is desired, provided that the usex shall reimburse the
Company at its actual cos•~. basis for labor and materials required for the
installation of such service outlets which are additional to the main outlet, but
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nv service or other charge will be made aftex installation.
Section 15. Records and Reports.
The Town shall have access at all reasonable hours to:
(1) All of the Company's plans, contracts and engin-~
Bering, accounting, financial, statistical, consumer and service recoxds
relating to the property and the operation of the Company and to all other
records requixed to be kept hereunder. Said records shall be available for
inspection by the Tawn in either Vail ar Denver, Colorado.
and, (2) G ompany Rules and Regulations - C apie s of
such rules, regulations, terms and conditions adopted by the Company for
the conduct of its business.
Section 16. Approval of Transfer.
The Company shall not sell or transfer its plant ar
system to another, nor transfer any xights under this Franchise to another
without the approval of the Board of Trustees. Provided, that no sale or
transfer shall be effective until the Vendee, assignee or lessee has filed in
the Office of the Tawn Clerk an instrument duly executed, reciting the fact
of such sale, assignment or lease, accepting the terms of the Franchise,
and agreeing to perform all the conditions thereof. In the case of any proposed `
sell or transfer the Town shall have the xight of first refusal to acquire the
rights and property of the Company under this Franchise upon the sarx~e terms
and conditions proposed by any bona fide Vendee.
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Section 17. Commence Operations.
The Company shall caxnznence aperations as a
Cable Television System transmitting television pictures to consumer outlets
by September 1, 19b8, or shall otherwise forfeit all rights and privileges
granted hereunder, but otherwise this Franchise shall remain in full farce
and effect.
Section 18, Term of Franchise.
The Franchise and rights herein granted shall take
effect and be in force from and after the final passage hereof, as required
by law, and upon filing of acceptance by the Company with the Town Clerk,
and shall continue in force for a term of ten (10} years after the effective
date of this franchise.
Section 19. Publication Costs.
The Company shall assume all costs incurred by the
Town in connection with this Franchise including without limitation publica-
tion and legal e-:penses. It is expressly understood that the Carnpany's obli-
potions under ibis paragraph shall not exceed seven hundred doilars ($70Q. 00}.
Sec':ion 20. Severability Clause.
It is the intention of the Board of Trustees that this
Ordinance or any part or provision thereof, shall be considered severable
and, if an,y provision of this ~ rdinance or the application thereof to any person
or circunnstance is held invalid, such invalidity shall not affect other provisiana
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or applications of the Ordinance which can be given effect without the invalid
provision or application, and to this end the provisions of this Ordinance are
declared to be severable.
introduced, read and ordered published as provided by law by the Board of
Trustees of the Town of Vail on, this ~2 ~~ day of ~~'x(-/, 1868.
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Finally paseed, adopted and appxoved an this
APPRO D ~-
Mayan
ATTEST
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To•~:~ Recorder /
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