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1458_00001ORDINANCE NO.1458 AN ORDINANCEGRANTINGA FRANCHISE TO SAMMONSCOMMUNICATIONSOFWASHINGTON,INC.,ADELAWARECORPORATION,ITSSUCCESSORSOR ASSIGNS,TOOWNANDOPERATEANDMAINTAINACABLETELEVISIONSYSTEMINTHECITYOFMOSESLAKE,STATEOF WASHINGTON,SETTINGFORTH CONDITIONSACCOMPANY- INGTHE GRANTOF FRANCHISE;ANDPROVIDINGFORTHE REGULATIONANDUSE OF SAID SYSTEM THECITYCOUNCILOF THE CITYOF MOSESLAKE,WASHINGTONDOORDAINAS FOLLOWS: O Santion1.ShortTitle.Thisordinanceshallbe known and maybe citedas the "SammansCommunicationsofWashington,Inc.FranchiseOrdinance." Section 2.Definîtlens.For the purpose of this ordinance the following terms,phrases,words,and theirderivationsshallhavethemeaninggivenherein.When notinconsistentwith the context,words used inthepresenttenseincludethefuture,words in the pluralnumber include the singularnumber and words in thesingularnumberincludethepluralnumber.The word "shall"is alwaysmandatoryand not merely directory. A."City"shall mean the Cityof Moses Lake in the State of Washington. B."Company"is the grantee of rights under this ordinance awarding a franchise,being SammonsCommunicationsofWashington,Inc. C."Person"isany person,firm,partnership,association,corporatîon,company,ororganizationofanykind. D."CableTelevision System"or"System"shai meana systemofantennae,cables,wires,lines,towers,waveguldesor other conductors,converters,equipment,or facilities designed and constructed forthepurposeofproducing,receMng,amplifying,and distributing audio,video,and other forms ofelectronicorelectricalsignalslocatedinthecity. E."GrossSubscriberRevenues'shall mean the revenuesderived bythe companyfrom its subscribers'monthly servicefees in the city. F."BasicSubscriber"shan meana residentofthe citywho issubscribingto company's lowesttierofservicereceivedbyallsubscriberstocompany's system.O Section 3.Franchise Term.The franchise granted the company herein shallterminateone (1)year fromdateofgrant. Section4.Payments to the City.The company shall,during its operation under thisfranchise,pay to thecityanyandallapplicabletaxes,fees,or the like as established bythe city,such as but not limited to,theutilityoccupationaltaxassetforthinMosesLakeMunicipalCodeChapter3.30.Payments shall be made as requiredby applicablecityordinances. Section5.Records and Reports.The companyshall keep full,true,accurate,and currentbooks ofaccountreflectingitsinvestmentanditsoperationsunderthisfranchise,whichbooks and records shall be madeavailableforinspectingandcopyingbytheFinanceDirectororhisauthorizedrepresentativeatallreasonabletimes.Thecompanywillsupplya certifiedannualstatementofrevenues receivedwithinthecitylimitsofMosesLakeandexpendituresattributedtothecompany's operation Inside the corporate limitsofthecity. Section6.Eging.Attached hereto and made a part of thisfranchise as ExhibitA is a schedule of currentratesforbasiccabletelevisionservice. Section7.Local Office;ComplaintProcedures.During the termofthis franchise,and any renewal thereof,the company shallmaintain withinthe city a local business officeor agent for the purpose ofreceivingandresolvingaicomplaintsregardingthequalityofservice,equipmentmalfunctions,and similarmatters.ThelocalolficeshalbeopentoreceiveinquiriesorcomplaintsfromsubscribersduringnormalbusinesshoursMondaythroughFriday.Any servicecomplaintsfrom subscribers shallbe investigated and acted upon assoonaspossible.Thecompany shall keepa maintenanceservicelogwhichwillindicatethe natureofeachservicecomplaintandthetimeanddatethereof.Thislogshall be madeavailable for periodicInspectionbythecity. Section8.Llabilityand indemnificgtion.The company shall pay,and by its acceptance of this franchisethecompanyexpresslyagreesthatitwillpay,all damages and penaltieswhich the city may legallyberequiredtopayasaresultofthecompany's negligence inthe installation,operation,or maintenance ofthecabletelevisionsystemauthorizedherein.The cityshallnotifythe company's representativewithinfifteen(15)days afterthe presentationofany claimordemand to the city,eitherbysuitorotherwise,madeagainstthecityonaccountofanynegligenceorcontractasaforesaidonthepartofthecompany.The companyfurtheragreesasfoHows: ORD.1458 A.Companyshallcarryworker's compensation insurance,with statutorylimits,and employer'sliability Insurance withlimits of not less than one hundred thousand dollars ($100,000),which shallcoveranoperationstobeperformedbycompanyasaresultofthisottiinance. B.Company shall carry comprehensive general liabilityand comprehensive automobile liability insurance withbodily injury limits of not less than one milliondollars ($1,000,000)per occurrence,and property damage limits ofnot less than one milliondoHars ($1,000,000). C.Companyagrees to fumish citywith certlfloatesof insurance of said policies,whichshall provide that Insurance shall not be cancelled unless ten (10)days'priorwritten notice shall firstbe given tocity. D.It is expresslyagreed and understood thatthe company is an independent contractor and in no eventshall company's employees be deemed to be employees of the city. Section9.System Construction,Maintenance,and Procedures. A.Upon grant of this franchiseto construct and maintain a community television system in the city, the company may enter into contracts with light,gas,and water dMsions of the city,any public utilitycompanies,or any other owner or lessee of any poles located withinor withoutthe cityto whateverextent such contract or contracts maybe expedientand ofadvantage tothe company for use of poles and posts necessary for proper installation ofthe system,obtain right-of-way permits from appropriate state,county,and federal officialsnecessary to cross highways or roads under their respective jurisdictionsto supply maintrunk lines from the company's receivingantennae, obtain permissionfrom the Federal Aviation Authorityto erect andmaintain antennae suitableto the needs of thesystem and itssubscribers and obtainwhatever other permits a city,county,state,or federal agency may require.In the construction,installation,and maintenanceof its system,the company willuse steel,cable,and electronicdevices,allof specializedand advanced design and type.Inthe operation of its system,the company will employ personnel with training,skill,and experience in electronicsand communications.Neither materialnor personnel ofthis sort willbe availableto the company for its system in the event of a war or other similarnationalemergency. 8.Thecompany's system,poles,wires,and appurtenances shallbe located,erected,and maintained so that none of itsfacilities shallendanger or interferewith the lives of persons,or Interferewith anyimprovementsthecitymaydeempropertomake,or unnecessarilyhinder or obstruct the free use of the streets,alleys,bridges,easements,or publicproperty. C.Extensionof service shallnot be required into an area which does not meet the requirementsset forthin Section 10 of thisfranchise. D.Alltransmissionand distributionstructures,lines,and equipmenterected bythe companywithinthe city shall be so located as to cause minimuminterferencewiththe proper use of streets,alleys,and other public ways and places,and to cause minimum interferencewith the rights or reasonable convenienceofpropertyownerswhoadjoinany ofthe said streets,alleys,orotherpublicways and places. E.Incase ofanydisturbanceofpavement,sidewalk,driveway,or other surfacing,the company shall, at its own cost and expense and in a manner approved bythe city,replace and restore allpaving, sidewalk,driveway,or surface ofany street or alleydisturbed in as good condition as before said workwas commenced. F.In the eventthat at any timeduring the periodof this franchise the cityshalllawfullyelect to alter or change the grade of any street,alley,or other public way,the company,upon reasonable notice by the city,shall remove,relay,and relocate its poles,wires,cables,underground conduits, manholes,and other fixtures at its own expense. G.The companyshallnot place poles or other fixtures where the same willinterfere withany gas, electric or telephone fixture,water hydrant or main,and all such poles or other fixtures placed in any street shall be placed at the outer edge of the sidewalkand inside the curb line,and those placed in alleys shall be placedclose to the line ofthe lot abutting on said alley,and then Insuch manner as not to interfere with the usualtraffic on said streets,alleys,and public ways. H.The company shall,on the request of any person holding a buildingmoving permit,issued by the city,temporarilyraise orlower its wires to pennit the moving of buildings.The expense of such temporaryremoval,raising,or lowering of wires shallbe paid by the person requesting the same, andthe company shall have the authorityto require such payment in advance.The company shall be given not less than seventy-two(72)hours advance notice to arrange for such temporarywire changes. I.The company shall havethe authority to trimtrees upon and overhangingstreets,alleys,sidewalks, and public places of the cityso as to preventthe branches ofsuch trees from coming in contact withthe wires and cables of the company. 2 ORD.1458 -PAGE 3 Section10.Une Extensions.To provide for a reasonable and nondiscriminatorypolicy govemingextensionsofcableservicewithinthecity,the company shall extend service to new subscribers,at thenormaiinstallationchargeandmonthlyrateforcustomersofthatclassification,under the fonowing termsandconditions. A.The company shall extend service to areas annexed into the city within one (1)year after theadoptionofthecityordinanceannexingpropertyintothecityaccordingtosubsectionsB,C,andD. B.Where thenewsubscriber,ornearest subscriberofa group of newsubscribers islocatedwithinfive hundred feet (500')of existingtrunk cable. C.Wherethe number of homes to be passed by such new extensioncable plant exceeds or equalsthirty-five(35)homes per mileof such new extension cable plant. D.In the event the requirements of subsections B.and C.are not met,the instaHation cost persubscribershallbedeterminedassetforthinExhibitBattachedhereto. Section 11.Compliancewith Standards.Allfacilities and equipmentof company shallbe constructed andmaintainedinaccordancewiththerequirementsandspecificationsoftheNationalElectricalSafetyCodeandsuchapplicableordinancesandregulationssetforthbythecityand/or any otherlocal,state,or federalagencies. Section 12.Company Rulesand Requiations.Thecompany shall have the authorityto promulgatesuchrules,regulations,terms,and condidons governingthe conduct of its business as shall be reasonably necessary to enablethe companyto exerciseits rights and performits obligationsunderthisfranchise,andtoassureanuninterruptedservicetoeachandallofitscustomers.However,such rules,regulations,terms,and conditionsshall not be in conHictwith the provisions hereof or offederal and state laws. Section 13.Procedures.The company shall be a party to any renewal proceedings and any otherproceedingsinwhichitsrights,privileges,or interests would be affected nd shall be fullyentitledto suchdueprocessrightsasmaybeavailableunderapplicablelaws,ordinances,rules,or regulations. Section 14.ApprovalofTransfer.The companyshallnot sellor transferits systemtoanother,nortransferanyrightsunderthisfranchisetoanotherwithoutwrittenapprovalbythecity,providedthat such approvalshallnotbeunreasonablywithheld. Section15.CompliancewithFCCRulesandRequiations.The company shall,at alltimes,complywiththerulesandregulationsgoverningCATVoperationspromulgatedbytheFCC.This shall includeadherencebythecompanytoFCCrulesregardingtechnicalandengineeringspecificationsinvolvedintheconstructionoftheCATVsystemandsignalcarriagetherein. Section16.Modification efFCCRules.Any modification of FCCRules resultingfrom amendment theretobytheFCCshall,to the extentapplicable,be consideredas a part of thisfranchiseas of the effectivedateoftheamendmentmadebytheFCCandshallbeincorporatedInthisfranchisebyspecificamendmentstheretobythelawfulactionofthecitywithinone(1)yearfromthe effectivedate ofthe FCC'samendmentoratthetimeofrenewalofthisfranchise,whicheveroccurs first. Section17.PublicationÇosts.The companyshallassume the costs ofthe publicationofthis franchise assuchpublicationisrequiredbylaw.Abillforpublicationcosts shallbe presented to the company by theappropriatecityofficialsuponthecompany's filing of its acceptance of this franchise and the saidpublicationcostsshallbepaidatthattimebythecompany. Section 18.Activities Prohibited. A.The companyshallnot allowits cable or other operationsto interferewith televisionreception ofpersonsnotservedbythecompany,nor shallthe system Interfere with,obstruct,or hinderin anymannertheoperationofthevariousutilitiesservingtheresidentsofthecity. B.The company shall not,as to rates,charges,service facilities,rules,regulations,or in any otherrespectmakeorgrantanypreferenceoradvantagetoanyperson,nor subject any person to anyprejudiceordisadvantage,provided that nothingin thisfranchise shall be deemed to prohibittheestablishmentofagraduatedscaleofchargesandclassifiedrateschedulestowhichanycustomercomingwithinsuchclassificationwouldbeentitled. Section 19.Regulatlon.In the event the city Is giventheauthorityto regulate rates or any operation of thecompany,such as but not limitedto,programmingand the like,nothing in thisfranchise shallbe deemedtoprohibitthecityfromdoingso. 3 ORD.1458 -PAGE 4 Section 20.Severability. A.Ifany section,subsection,sentence,clause,phrase or portion of this ordinance is for any reason held invalidor unconstitutionalby anycourtofcompetentjurisdiction,such portionshallbedeemed a separate,distinct,and independent provisionand such holding shallnot affectthe validityofthe remainingportions hereof. B.Shouldany provisionofthis franchise be inconsistent or at variance withany rule,regulation,or policy,inwholeor inpart,ofthe FCCor any other agency havingjurisdiction,such provisionshall be invalid,but the remaining provisionshereofshall not be affected thereby. Section21.This ordinance shalltake effectandbe inforce five(5)days afterits passage and publication as providedby law. City ciland Finance Director APPRO ED ASTO FORM: ity Attorney PUBLISHED:12/14/90 0 4