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HomeMy WebLinkAbout493_Part 17 Ch 4_Tulsa Cable Television PermitTULSA COUNTY CLERK - JUAN HASTINGS RCPT 87241 04/07/95 11:31:52 DOC # 95029900 FEE 0.00 PGS 18 13 /P 5704/1683 -1700 Cable Television Ordinance City of Owasso CITY OF OWASSO, OKLAHOMA Ordinance No. 493 AN ORDINANCE GRANTING A PERMIT TO TULSA CABLE TELEVISION, INC., DOING BUSINESS AS TCI CA13LEVISION OF TULSA, TO PROVIDE CABLE TELEVISION AND OTHER LAWFUL SERVICES WITHIN THE CITY OF OWASSO USING PUBLIC WAYS; DEFINING CERTAIN TERMS; PROVIDING SERVICE STANDARDS AND RULES OF OPERATION; AUTHORIZING REGULATION BY THE CITY; PERMITTING USE OF THE CABLE TELEVISION SYSTEM BY THE CITY; ESTABLISHING CONDITIONS AND REGULATIONS FOR USE OF STREETS AND RIGHTS -OF -WAY, AND ERECTION AND USE OF POLES; REQUIRING PAYMENT OF A PERMIT FEE; AUTHORIZING REGULATION OF RATES SUBJECT TO FEDERAL AND STATE LAW; REQUIRING GRANTEE TO PROVIDE INSURANCE AND INDEMNIFICATION TO THE CITY; ESTABLISHING STANDARDS AND SCHEDULES FOR THE REBUILD AND UPGRADE OF THE CABLE TELEVISION SYSTEM IN THE CITY; ESTABLISHING OPERATIONAL STANDARDS; REQUIIUNG CERTAIN MINIMAL SERVICES TO SUBSCRIBERS, THE CITY AND SCHOOLS; PROVIDING FOR COMPLIANCE AND MONITORING OF CABLE SYSTEM OPERATIONS; ESTABLISHING EVENTS OF DEFAULT, PROVISIONS FOR PENALTIES AND REVOCATION OF THE PERMIT; REQUIRING APPROVAL BY THE CITY FOR ASSIGNMENT OF THE PERMIT; PROVIDING FOR MODIFICATION OF THE PERMIT BY THE CITY; PROVIDING A RIGHT FOR THE CITY TO PURCHASE THE SYSTEM UNDER CERTAIN CONDITIONS; PROHIBITING DISCRIMINATION IN OPERATION OF THE CABLE SYSTEM; REQUIRING ACCEPTANCE BY GRANTEE OF TERMS OF THE PERMIT; PROVIDING FOR SEVERABILITY; CODIFYING THE ORDINANCE; DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: 17-401. SHORT TITLE This Ordinance shall be known and may be cited as the "Tulsa Cable Television Permit Ordinance ". 17-402. DEFINITIONS For the purposes of this Permit, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in plural include the singular and words in the singular include the plural. The word "shall" is always mandatory and not directory. A. Affiliate. Any person who owns or controls, is owned or controlled by, or is under common ownership or control with Grantee. 5704 1684 C. Cable Act. The Communications Act of 1934, as amended by the Cable Television Consumer Protection and Competition Act (Public Law No. 102 -385, 1992) and as the same may hereafter be amended. to D. Cable Channel or Channel. A portion of the electromagnetic frequency spectrum which is used in a Cable Television System and which is capable of transmitting a television channel as defined by the FCC. E. Cable Service. The one -way transmission to Subscribers of video and audio programming or other programming services and Subscriber interaction, if any, which is required for the selection of video and audio programming or other programming services provided through electric or electronic signals, or which utilizes any facility or equipment of the Cable System. F. Cable Television System or Cable System or System. Facilities consisting of antennae, coaxial cables, fiber optic cables, wave guides, conductors or other closed transmission paths and associated signal generation, reception and control equipment, and other equipment designed to provide Cable Service or Other Lawful Service to Subscribers and users. G. City. The City of Owasso, Oklahoma, a municipal corporation in its present incorporated form or in any other reorganized or changed form. H. Completion of System Rebuild. The reconstruction and upgrade of the Cable System or part thereof as required by Section 13 hereof, including above and underground trunk and feeder cables, amplifiers, power supplies, connectors, splitters and tap installations, headend and hub rebuild or upgrade and any and all other construction necessary for the Cable System or part thereof to be ready to deliver Cable Service to Subscribers. I. Council. The City Council of the City or any body constituting in the future the legislative body of the City. J. FCC. The Federal Communications Commission or its successor. K. Fiber Trunk Cable. Any part of the Cable System which utilizes fiber optic cable for the purpose of transmitting video, audio or other lawful signals. L. Grantee. Tulsa Cable Television, Inc. now doing business as TCI Cablevision of Tulsa or its lawful successor, transferee or assignee. M. Gross Operating Revenues. Any and all fees, charges, cash, credits, property of any kind or nature, consideration, compensation or receipts derived directly or indirectly by Grantee, its Affiliates, subsidiaries, parents, or arising from or attributable to the operation of the Cable Television System, except that the term shall not include: 1. The amount of any refunds, corrective billing credits or other re- payments made to Subscribers or users; 2. Any taxes on service furnished by Grantee, imposed directly or indirectly on any Subscriber or user by any municipal corporation, political subdivision, state or other governmental unit and collected by Grantee for the governmental unit; 2 5704 1685 Receipts for the sale or transfer of tangible property; Receipts for the sale or transfer of the System; 5. Receipts from the installation or reconnection of Cable Service, the transfer of an existing connection, the moving of a cable television outlet, or other non - recurring charges to a Subscriber or user for technical or installation services; and 6. Charges, credits, compensation, or payments on a commercially reasonable basis to an Affiliate, subsidiary or parent for services rendered to Grantee. N. Other Lawful Service. Any service other than Cable Service provided through electric or electronic signals or which utilizes any facility or equipment of the Cable System. O. Person. An individual, corporation, partnership, association, joint stock company, trust corporation or governmental entity. P. Permit. The rights and privileges granted by City to Grantee to construct, operate, maintain and upgrade a Cable Television System utilizing Public Ways within the corporate limits of the City of Owasso, Oklahoma, for the purpose of offering Cable Service or Other Lawful Service to Subscribers. Q. Public Way. The surface of and the space above and below and public street, highway, freeway, bridge, alley, court, boulevard, sidewalk, parkway, way, lane, drive, circle or other public right -of -way, including but not limited to, public utility and communication easements, dedicated utility strips or rights -of -way dedicated for compatible public uses, and any temporary or permanent fixtures or improvements located within or held by City in the Service Area which entitles City or Grantee to its use for the purpose of installing, operating, repairing and maintaining the Cable Television System. R. Service Area. The present corporate limits of the City and any additions caused by annexation or other lawful means. S. State -of -the -art. The most current technology which is economically feasible, has been performance tested and is commonly accepted by industry standards for cable television systems of comparable size. T. Subscriber. Any Person lawfully receiving Cable Service or Other Lawful Service from the Cable Television System. U. System Rebuild. The reconstruction and upgrade as required by Section 12 hereof the Cable Television System existing in the Service Area utilizing fiber optic cable and technology which is the State -of -the -art as of the date of the approval of this Permit. 17-403. GRANT OF PERMIT A. City hereby grants to Grantee a permit to enter upon the Public Ways to install, construct, operate, maintain, rebuild and upgrade in, upon, along, across, above and under the Public Ways a Cable Television System for the purpose of providing Cable Service and Other Lawful Services to Subscribers subject to the terms, conditions and Receipts for the sale or transfer of tangible property; Receipts for the sale or transfer of the System; 5. Receipts from the installation or reconnection of Cable Service, the transfer of an existing connection, the moving of a cable television outlet, or other non - recurring charges to a Subscriber or user for technical or installation services; and 6. Charges, credits, compensation, or payments on a commercially reasonable basis to an Affiliate, subsidiary or parent for services rendered to Grantee. N. Other Lawful Service. Any service other than Cable Service provided through electric or electronic signals or which utilizes any facility or equipment of the Cable System. O. Person. An individual, corporation, partnership, association, joint stock company, trust corporation or governmental entity. P. Permit. The rights and privileges granted by City to Grantee to construct, operate, maintain and upgrade a Cable Television System utilizing Public Ways within the corporate limits of the City of Owasso, Oklahoma, for the purpose of offering Cable Service or Other Lawful Service to Subscribers. Q. Public Way. The surface of and the space above and below and public street, highway, freeway, bridge, alley, court, boulevard, sidewalk, parkway, way, lane, drive, circle or other public right -of -way, including but not limited to, public utility and communication easements, dedicated utility strips or rights -of -way dedicated for compatible public uses, and any temporary or permanent fixtures or improvements located within or held by City in the Service Area which entitles City or Grantee to its use for the purpose of installing, operating, repairing and maintaining the Cable Television System. R. Service Area. The present corporate limits of the City and any additions caused by annexation or other lawful means. S. State -of -the -art. The most current technology which is economically feasible, has been performance tested and is commonly accepted by industry standards for cable television systems of comparable size. T. Subscriber. Any Person lawfully receiving Cable Service or Other Lawful Service from the Cable Television System. U. System Rebuild. The reconstruction and upgrade as required by Section 12 hereof the Cable Television System existing in the Service Area utilizing fiber optic cable and technology which is the State -of -the -art as of the date of the approval of this Permit. 17-403. GRANT OF PERMIT A. City hereby grants to Grantee a permit to enter upon the Public Ways to install, construct, operate, maintain, rebuild and upgrade in, upon, along, across, above and under the Public Ways a Cable Television System for the purpose of providing Cable Service and Other Lawful Services to Subscribers subject to the terms, conditions and K; 5704 1686 provisions contained in this Permit, the Charter and applicable laws and regulations of Oklahoma and the United States of America. B. This Permit shall be the measure of the rights,privileges and liabilities of to City as well as the Grantee. In any court proceeding involving any claim against the City or other governmental entity, or any official, member, employee, or agent of the City or entity, arising from the regulation of Cable Service or from a decision of approval or disapproval with respect to a grant, renewal, transfer, or amendment of this Permit, any relief, to the extent such relief is required by any provision of federal, state, or local law, shall be limited to injunctive relief and declaratory relief. C. This Permit shall not be exclusive and nothing herein shall be construed to divest City of its control and regulation of the Public Ways. 17-404. RULES OF GRANTEE The Grantee shall have the authority to promulgate and enforce such reasonable rules, regulations, terms and conditions governing the conduct of its business as it shall deem necessary to enable Grantee to exercise its rights and perform its obligations under this Permit and to assure uninterrupted Cable Service to each and all of its Subscribers. Such rules, regulations, terms and conditions shall not be in conflict with the provisions of this Permit, the rules and regulations of the FCC or any other body having lawful jurisdiction. The rules of Grantee shall become effective only upon or after, if a later effective date is specified therein, the filing of copies of such rules with the City Clerk. 17-405. SERVICE STANDARDS Grantee shall maintain and operate the Cable System and render efficient Cable Service in accordance with such rules and regulations as shall be promulgated by the FCC. Wherever it is necessary to interrupt Cable Service for the purpose of making repairs, adjustments or installments, Grantee shall do so at such time as will cause the least inconvenience to Subscribers, and unless such interruption is unforeseen and immediately necessary, Grantee shall give reasonable notice to Subscribers. 17-406. REGULATION BY CITY A. Grantee in the installation, maintenance and operation of the Cable Television System shall, at all times, be subject to the terms and provisions of the general ordinances of the City and to the lawful exercise of the police power of the City. B. Grantee shall be subject to the lawful exercise by City of all other powers, functions, rights, privileges and immunities of regulation of the Cable System, Cable Service or Other Lawful Service granted or delegated to City by the Charter, by the Constitution and laws of Oklahoma or the laws and regulations of the United States of America. 17-407. USE OF SYSTEM BY CITY A. City shall have the right, at no cost, to locate equipment upon and make attachments to the Cable Television System owned by Grantee in connection with City systems. Attachments shall be installed and maintained in accordance with the requirements of the Electrical Code of City and only after written notice to Grantee. 5704 1687 Upon request by City, Grantee agrees to construct attachments to the System for exclusive use by the City, its departments, boards, authorities, commissions and agencies for governmental purposes, other than the operation of a Cable Television System, at the incremental cost of such attachments at the time of construction. Grantee shall assume no liability or expense in connection with any City attachment to or use of the Cable Television System. City use shall be in such manner as not to interfere with the use and maintenance of the Cable Television System by the Grantee. B. City, in its use and maintenance of such equipment and fixtures, shall at all times comply with the rules and regulations of Grantee in order that there be a minimum danger of contact or conflict between the equipment and fixtures of Grantee and the equipment and fixtures used by City. C. City shall be solely responsible and save Grantee harmless for all claims and demands for damages to Persons or property arising out of the use by the City of the Cable Television System. 17-408. CONDITIONS ON USE OF PUBLIC WAYS A. All transmission and distribution structures, lines and equipment erected by Grantee within the Service Area shall be located so as not to obstruct or interfere with the proper use of the Public Ways and other public places, and to cause minimum interference with the rights of property owners who abut any of the Public Ways and places, and not to interfere with exiting public utility installments. In all areas of the Service Area where all cables, wires or other like facilities of public utilities are placed underground, Grantee shall place its cables, wires, or other like facilities underground to the maximum extent existing technology reasonably permits and shall mark such facilities, indicating their location by a method approved by City's Department of Public Works. Upon request, Grantee shall furnish to and file with City maps, plats and permanent records of the location and character of all facilities constructed, including underground facilities. Such maps, plats, and permanent records shall be updated as required by City. B. In case of any disturbance of pavement, sidewalk, driveway or other surfacing, Grantee shall, at its own expense, replace and restore all paving, sidewalk, driveway or other surface of any Public Way disturbed in accordance with the standards and specifications of the City. C. If at any time during the period of this Permit City shall elect to alter or change the grade or location of any water line, sewer line, street, alley or other Public Way, Grantee shall, upon reasonable notice by City, remove and relocate its poles, wires, cables, conduits, manholes and other fixtures at its own expense, and in each instance comply with the standards and specifications of the City. D. Grantee shall not place poles, conduits, or other fixtures above or below ground where the same will interfere with any gas, electric, telephone fixtures, water hydrant or other utility, and all such poles, conduits or other fixtures placed in any Public Way shall be so placed as to comply with all requirements of the City. E. Grantee shall, on request of any Person holding a house moving permit issued by City, temporarily move its cables, equipment or fixtures to permit the moving of buildings with the expense of such temporary removal to be paid by the Person requesting the same. Grantee shall be given not less than forty-eight (48) hours advance notice to arrange for such temporary changes. 5 5704 1688 F. Grantee shall have the authority to trim any trees upon and overhanging the Public Ways of City so as to prevent the branches of trees from coming in contact with the equipment and cables of Grantee, except that at the option City such trimming may be done by City, or under its supervision and direction, to the expense and liability of Grantee and other franchise and permit grantees. G. City shall not be liable to Grantee for any injury to Grantee's Cable Television System caused by any City employee while performing emergency repairs within the Public ways. In all other circumstances when City employees negligently injure Grantee's Cable System, City shall only be liable to Grantee for the Grantee's actual cost of materials, equipment and labor necessary to effect repairs, with no allowance for interruptions to service or loss of revenues, subject to any applicable limits of liability established by the Oklahoma Governmental Tort Liability Act. Grantee, no later than January 1 of each year, shall file with the City Clerk a schedule of the current cost of materials, equipment and labor necessary to make repairs. 17-409. ERECTION, REMOVAL AND JOINT USE OF POLES A. No poles, conduits or other structures shall be erected or installed by Grantee without prior approval of City with regard to location, height, type and other pertinent aspects. Grantee shall not have a vested right to retain the location of any pole, conduit or structure installed by Grantee. Such poles, conduits or structures shall be removed or modified by Grantee at its own expense when necessary for the convenience of City. B. Where poles, conduits or other structures of any public utility company are available for use by Grantee, City may require Grantee to use such poles, conduits and structures if the permission and consent of such public utility company may be obtained by Grantee and if the terms of the use available to Grantee are just and reasonable. C. Where a public utility serving City desires to make use of the poles, conduits or other structures of Grantee but an agreement with Grantee cannot be reached, City may require Grantee to permit such use for such consideration and upon such terms as the Council shall determine to be just and reasonable if the use would not unduly interfere with use of the Cable Television System. D. Where City owned utility poles are available for use by Grantee, Grantee shall pay City the same pole rental per annum as paid by Grantee for the use of pole owned by public utilities. 17-410. PERMIT FEE A. Grantee shall pay to City as compensation for the rights and privileges enjoyed under this Permit an annual fee on a calendar year basis equal to three percent (3 %) of the Gross Operating Revenues from the Cable System in the Service Area. The fee, together with any accumulated interest, shall be payable monthly on or before the 45th day after the end of each month on Gross Operating Revenues received for that month. If the payment is not timely made, interest upon any unpaid portion shall accrue at the rate of one and one -half percent (1.5 %) per month until paid. Grantee shall file a complete and accurate verified statement of all Gross Operating Revenues within the Service Area during the period for which the monthly payment is made and an annual statement of such Gross Operating Revenues, verified by the Grantee's external certified public accountant, within sixty (60) days after the end of each calendar year. Grantee's first annual statement shall include the months of the calendar year that preceded the first 6 5704 1689 month -in which this Permit is effective. If Grantee fails or refuses to pay such fee, City may maintain an action against Grantee for the amount of such fee and interest and all expenses of collecting same, including reasonable attorneys fees. B. If permitted by federal law, in the event Grantee or an Affiliate accepts a franchise, permit, license, authorization or other agreement of any kind with any municipal corporation or other governmental subdivision wholly or partially within Tulsa County, Oklahoma, for the purpose of constructing or operating a Cable System or providing Cable Services to any part of a city or other governmental subdivision which provides for the payment as compensation for the rights and privileges enjoyed thereunder of an annual fee in excess of three percent (3 %) of the Gross Operating Revenues from the Cable System in that municipal corporation or other governmental subdivision, then this Permit shall be deemed amended as of the effective date of the other franchise, permit, license, authorization or other agreement and Grantee shall thereafter pay to City as compensation for the rights and privileges enjoyed hereunder an annual fee equal to the same percentage of Gross Operating Revenues in the Service Area as is paid by Grantee under such other franchise, permit, license, authorization or other agreement. 17-411. RATES TO SUBSCRIBERS Subject to the provisions of the Constitution and laws of the United States of America, the Cable Act and the Constitution and laws of Oklahoma, the Council may regulate the rates of Grantee for the Basic Cable Service to be furnished by Grantee under this Permit. No rates shall be adopted or changed by the Council except after notice to the public and to Grantee and after a public hearing. 17-412. LIABILITY OF GRANTEE, INSURANCE AND INDEMNIFICATION Grantee shall defend and hold City harmless from all loss sustained by City by reason of any suit, judgment, execution, claim or demand resulting from the construction, operation or maintenance by Grantee of a Cable Television System in the Service Area. Grantee shall maintain in full force and effect for the term of this Permit, at Grantee's sole expense, a general comprehensive liability insurance policy, in protection of City, the City Commission, and City officers, boards, commissions, agents and employees, issued by a company authorized to do business in the State of Oklahoma, protecting City and all Persons against liability for loss or damage for personal injury, death and property damage occasioned by the operations of Grantee under this Permit in the minimum amount of three million dollars ($3,000,000); provided if the maximum liability of City under the Oklahoma Governmental Tort Liability Act should be increased to more than three million dollars ($3,000,000), the amount of liability insurance required hereunder shall be increased to that amount. Grantee shall file with the City Clerk certificates of the insurance required hereunder in a form satisfactory to the City Attorney. 17-413. SYSTEM REBUILD The Cable Television System now owned and operated by Grantee within the Service Area provides a maximum of forty (40) video Channels and consists of coaxial cables, amplifiers, conductors and other equipment and facilities which represented the State -of -the -art at the time of construction. Upon acceptance of this Permit, and in reliance thereon, Grantee, in accordance with Section 14, shall rebuild and upgrade the Cable Television System utilizing fiber optic cables, coaxial distribution cables and State - of -the -art technology. Upon completion of the System Rebuild, the System shall have an available Channel capacity of at least seventy-two (72) video Channels. 7 5704 1690 Grantee shall not charge a Subscriber any direct fee or assessment for the System Rebuild, including the upgrade of drops required for service to a Subscriber. 17-414. SYSTEM REBUILD SCHEDULE AND EXTENSION A. Grantee shall review the System Rebuild's design and schedule with City in order that City may elect to make attachments to the System during construction. Construction of the System rebuild shall be completed by February 2, 1999. B. Construction of the System Rebuild shall provide for upgraded Cable Service to all residences and properties in developed areas within the corporate limits of the City. Thereafter, the System shall be extended and Cable Service provided to any area where there are then existing thirty -five (35) homes within one (1) mile of the existing Cable System or ten (10) homes within one - quarter (1/4) mile of the existing Cable System. In other areas, Grantee may charge for extension of the Cable System based upon the cost of labor and materials. C. The time for Completion of the System Rebuild may be extended or excused by the City Commission for any period during which Grantee experiences delays or interruptions due to circumstances reasonably beyond its control including, but not limited to, necessary utility changes or re- arrangements, governmental or regulatory restrictions or requirements, major strikes, litigation, lock -outs, war (declared or undeclared), national emergency, economic conditions, fire, earthquakes and acts of God. 17-415. OPERATIONAL STANDARDS A. Grantee shall maintain and operate the Cable System so as to provide video, audio and other signals to be delivered with signal strength and quality levels which meet the parameters specified by the FCC and any other normally accepted industry standards. Grantee shall construct the System Rebuild and operate and maintain the System in a manner consistent with all ordinary care and all applicable laws, ordinances, construction standards, and FCC technical standards. Upon request, Grantee shall provide City a report of the results of any FCC required proof of performance test conducted by Grantee. B. Grantee shall maintain equipment capable of providing standby battery power for trunk amplifiers for a minimum period of four (4) hours. C. Grantee shall, as a part of the System Rebuild, provide capacity for interactive services which may be added to the System as such services become technically and economically feasible. D. Grantee may interconnect the Cable Television System within the Service Area with cable television systems owned or operated by Grantee within adjacent cities. E. Upon request, Grantee shall provide Subscribers with a parental control locking device or digital code capable of blocking or otherwise preventing a television set from receiving a Channel or audio signal, for which Grantee imposes a separate charge. F. Under normal operating conditions, each of the following standards shall be met no less than ninety-five percent (95%) of the time on an annual basis: 8 5704 1691 1. Standard installations shall be performed within seven (7) business days after an order has been placed; and 0 2. Except when beyond the control of Grantee, Grantee shall respond in to Cable Service interruptions promptly and in no event later than twenty-four (24) hours. G. Grantee shall establish procedures for receiving, acting upon and resolving Subscriber complaints which shall be subject to the approval of the City Manager of the City. H. City shall notify Grantee in writing of any complaint from Subscribers or of any failure of Grantee to comply with the terms and conditions of this Permit. Grantee, upon receipt of such notice, shall promptly investigate the complaint and take such action as is necessary to provide Cable Service to Subscribers and/or to operate the System as required. 17-416. SERVICES TO SUBSCRIBERS A. Grantee shall provide to Subscribers as a part of its Basic Cable Service local television broadcast signals as required by the Cable Act and FCC regulations subject to obtaining the consent of the local broadcast stations as required by law, and educational and public affairs programming including local educational and governmental programs. B. Upon completion of the System Rebuild, Grantee shall offer to Subscribers programming on at least fifty (50) video channels including the video channels offered as a part of Basic Cable Service. C. Grantee shall provide audio services. D. Upon request, and at a reasonable charge, Grantee shall provide to Subscribers an input selector switch to permit broadcast television reception from an antenna. 17-417. GOVERNMENTAL AND EDUCATIONAL USES A. Until the Completion of the System Rebuild, Grantee shall provide to state accredited public, private and parochial schools and institutions of higher learning in the Service Area for educational services at no cost to the school or institution one (1) free service outlet to the Cable Television System for each public, private and parochial school and institutions of higher learning, with additional service outlets to be provided at the cost of labor and materials, and with no monthly service charge for service outlets or for services which are not offered on a premium or pay - per -view basis. Grantee shall provide maintenance, at no cost, of cables, amplifiers and other distribution equipment owned by Grantee and used for educational programming, and shall provide, at no cost, technical assistance required for the use of Channels for educational use. B. Upon Completion of the System Rebuild, Grantee shall provide for governmental and educational use and for networking among governmental or educational users, at no cost to such users, the following: 9 5704 1692 1. One (1) Channel on the System for the exclusive use of Owasso School District; 2. One (1) Channel on the System for the exclusive use of Tulsa Junior College; 3. One (1) Channel on the System for shared use, under the coordination of Independent School District Number One of Tulsa County, Oklahoma, for the exclusive use of Independent School District Number One of Tulsa County, Oklahoma, and Tulsa Junior College, and other state accredited elementary and secondary schools within the Service Area and service areas of other cable television systems owned by the Grantee and interconnected with the Cable System which develop, staff and operate facilities and equipment to provide programming on a continuing basis; and 4. Three (3) Channels on the System for joint and cooperative use by the City, other cities which have granted the Grantee a permit or franchise to provide Cable Service and are interconnected with the Cable Television System, state accredited elementary and secondary schools and institutions of higher learning within the Service Area, and service areas of other cable television systems owned by the Grantee and interconnected with the Cable System, including Independent School District Number One of Tulsa County, Oklahoma, and Tulsa Junior College. If potential users are unable to agree on the allocation of Channels provided in this subsection B.4 and subsection D. of this Section, the City Council and the governing bodies of other cities interconnected with the Cable System shall by agreement promulgate rules, regulations and procedures governing the allocation of governmental and educational use Channels. The City Council and the governing bodies of other cities interconnected with the Cable System shall by agreement resolve any disputes between any user of the channels and shall approve all allocations of educational and governmental channels provided in this Subsection B.4 and Subsection D of this Section and within the permits granted the governing bodies of the other cities interconnected with the Cable System. C. Grantee shall provide one (1) free service outlet to the System with additional service outlets to be provided at the cost of labor and materials, and with no monthly service charge for service outlets or for services which are not offered on a premium or pay - per -view basis for each state accredited school and institution of higher learning. Grantee shall provide, at no cost, connections for video and audio originations from City Hall and, upon Completion of the System Rebuild, from one point at each institution of higher learning. Upon request from a governmental or educational user, Grantee shall provide, at the direct cost to the Grantee of labor and materials, additional connections for video and audio origination from other points. Grantee shall maintain, at no cost, cable television Channels used for governmental and educational use and shall provide, at no cost, technical assistance required for the use of Channels governmental and educational use. D. Grantee shall have the right to temporarily use any unused portion of a Channel allocated under subsection B.4 and subsection D. of this Section for - governmental and educational use which is not being fully utilized, as defined herein, provided such use shall not interfere with any educational or governmental use. If the Channels provided under this Section for governmental and educational use are being fully utilized, Grantee shall provide at no cost to the user for additional governmental and educational use the Channel added to the Cable Television system above the seventy-two (72) Channels which shall be available upon Completion of the System Rebuild. Thereafter, Grantee shall provide at no cost to the user for governmental and educational 10 5704 1693 use the first Channel added to the Cable Television System above eighty-four (84) Channels, above ninety-six (96) Channels, above one hundred and eight (108) Channels, and additional Channels in a like progression as Channels are added to the Cable Television System. Use of such additional Channels shall be allocated as provided in rr subsection B.4 of this Section. Generally, a Channel shall be considered as being fully trn utilized if more than an average of forty -eight (48) hours per week over a six (6) month period of programming other than character generated programming is offered. School terms, seasonal and special concerns shall be considered in determining whether a Channel is fully utilized. If a Channel allocated for governmental or educational use is being temporarily used by the Grantee, the governmental or educational institution for which the Channel has been allocated shall have the right to require the return of the Channel or portion thereof by a written statement to Grantee that the institution is prepared to fully utilize the Channel or portion thereof in which event the Channel or portion thereof shall be returned to such institution within three (3) months after receipt by Grantee of the statement. E. Grantee shall not make any separate or premium charge to a Subscriber for access to educational or governmental Channels. F. All Channels allocated for governmental and educational use shall be of the same quality as the Channels on the Cable System for Cable Service. All Channels allocated for educational use shall be available to Subscribers in the Service Area and the service areas of other cable television systems interconnected with the Cable System. G. When a Channel allocated for governmental or educational use has been assigned a Channel number or position by the Grantee, such Channel number or position shall not be changed until at least six (6) months written notice has been given to the user of such Channel. 17-418. SERVICES TO CITY Grantee shall provide the following services to City: A. Channel space as provided in Section 17 at no charge for the dissemination of information to the public; B. A service outlet, at no cost to City, to each City facility within the Service Area including, but not limited to, City Hall, the Community Center Building, fire stations, recreation centers, and maintenance facilities. Additional service outlets shall be provided at the cost of labor and materials with no monthly service charge for connections, service outlets or non - premium services; and C. A means of simultaneously interrupting all Channels other than local broadcast Channels on the Cable Television System to present emergency audio and, upon completion of the System Rebuild, moving character generated video messages by local public safety, civil defense and other public officials. Grantee shall install City purchased equipment, at no cost to City, in the City Hall, for the use of the emergency information system. 17-419. COMPLIANCE AND MONITORING A. Grantee will provide written notification to the City prior to offering any Other Lawful Service and Grantee shall file with the City a copy of its authority to provide such service, if any has been obtained. 11 5704 1694 B. City may perform technical tests of the Cable System during reasonable times and in a manner which does not unreasonably interfere with the normal business operations of Grantee or the Cable System in order to determine whether or not Grantee is in compliance with the terms hereof and applicable state or federal laws. Except in o emergency circumstances, such tests may be undertaken only after giving Grantee t reasonable notice thereof and providing a representative of Grantee an opportunity to be present during such test. In the event that such testing demonstrates that Grantee has substantially failed to comply with a material requirement hereof, the reasonable costs of such tests shall be borne by Grantee. In the event that such testing demonstrates that Grantee has substantially complied with such material provisions hereof, the cost of such testing shall be borne by City. Except in emergency circumstances, such testing shall be undertaken no more than two (2) times in a calendar year and the results thereof be made available to Grantee. Upon request, Grantee shall furnish to and file with City the results of technical tests that Grantee conducts for itself or others. C. On or after September 1, 1998 and every five (5) years thereafter, Council may commence proceedings, which afford public notice, public participation and open meetings, for the purpose of identifying future Cable System community needs and interests, including channel capacity and customer service, and reviewing Grantee's performance during the preceding five (5) years. Upon request by the Council, Grantee shall cause to be conducted a survey, as approved by the Council, to determine community needs, desires and ratings of Grantee's performance. The survey shall be made available to the public and shall specifically address, among other items, the demand for new services in relation to the cost of providing such services so as to ascertain the overall need for channel expansion. D. Upon completion of any five (5) year review provided for in this section, Grantee and City shall meet, confer and, if deemed necessary by either, renegotiate in good faith the terms and conditions of this Permit relating to community needs, channel capacity and customer service. 17-420. DEFAULT OF GRANTEE, PENALTIES AND REVOCATION A. The rights and privileges granted by the City to Grantee under this Permit shall continue and remain in full force and effect until revoked by the Council. In the event that City or the City Commission believes that Grantee has not complied with the terms of this Permit, City or the City Commission shall notify Grantee in writing of the exact nature of the alleged default. B. Grantee shall have thirty (30) days from receipt of a written notice of default to: (a) respond contesting the alleged assertion of a default, or (b) cure such default or, in the event that, by the nature of default, such default cannot be cured within the thirty (30) day period, initiate reasonable steps to remedy such default and notify City or the Council of the steps being taken and the projected date that they will be completed. C. In the event that Grantee contests the assertion of a default or fails to respond to a notice of default or the alleged default is not remedied within thirty (30) days after Grantee is notified thereof, the Council shall schedule a hearing to investigate the default. The Council shall notify Grantee of the time and place of such hearing and provide Grantee with an opportunity to be heard. D. In the event the Council, after such hearing, determines that Grantee is in default of any provision of this Permit, the Council may: 12 5704 1695 1. Assess liquidated damages to City caused by the default by Grantee as follows: a. For default in the Completion of the System Rebuild as Orequired by Sections 13 and 14 hereof, the sum of one thousand dollars ($1,000.00) per day for the first thirty (30) days after the expiration of the time for the Completion of the System Rebuild or part thereof as required by Sections 13 and 14 hereof, two thousand five hundred dollars ($2,500.00) per day for each day more than thirty (30) days past the expiration of the time for the Completion of the System Rebuild or part thereof as required by Sections 13 and 14 hereof and thirty -Five hundred dollars ($3,500.00) per day for each day more than sixty (60) days past the expiration of the time for Completion of the System Rebuild or part thereof as required by Sections 13 and 14 hereof, provided that the total amount of liquidated damages assessed under this subsection shall not exceed two hundred thousand dollars ($200,000.00); b. For knowingly failing to provide data, documents or information as required in this Permit, two hundred fifty dollars ($250.00) per day for each day the failure occurs or continues; and C. For knowingly failing to comply with the service and operational standards of this Permit, five hundred ($500.00) per day for each day the failure occurs or continues. Amounts of liquidated damages in this Section are deemed appropriate as of the effective date of this Permit. Such damages, at the time of any Council assessment, will be adjusted to equivalent values. Damages identified in this Section shall be adjusted in accordance with changes in the United States Department of Labor, Bureau of Statistics Consumer Price Index City Average for Urban Wage Earners and Clerical Works ( "C.P.I. ") measured from the effective date of this Permit to the date of assessment by the Council. In the event a substantial change is made in the method of establishing the C.P.I., or the C.P.L or successor is not available, a reliable governmental or other independently determined publication, evaluating information used in determining the C.P.I., shall be used in lieu of the C.P.I. 2. In the case of a default of a provision of this Permit which is not cured by Grantee or the subject of damages assessed as provided herein, the Council may revoke this Permit in its entirety; or 3. Seek specific performance of any provision, which reasonably lends itself to such remedy, or injunctive relief as an alternative to damages or termination of this permit. Grantee shall not be relieved of any of its obligations to comply promptly with any provision of this Permit by reason of any failure of City to enforce prompt compliance. E. Grantee shall not be held in default with the provisions of this Permit, nor suffer any enforcement or penalty relating thereto, where such alleged default is caused by labor strikes, acts of God, power outages or other events reasonably beyond the ability of Grantee to control. 17-421. ASSIGNABILITY If Grantee shall at any time assign, sell, lease or otherwise transfer in any manner whatsoever its rights and privileges under this Permit to any Person, such action shall be 13 5704 1696 in writing and a duly authenticated copy shall be filed with the City Clerk. Such action shall not become effective until the transferee shall have agreed in writing with City to become responsible for the full performance of all the conditions, liabilities, covenants and obligations contained in this Permit and until such action shall have been approved CD by the Council, provided such approval shall not be unreasonably withheld. The Council may require evidence that the transferee possesses the financial, technical and legal capability to perform all of the conditions, liabilities, covenants and obligations contained in this Permit. If the Council fails to act upon a proposed transfer within sixty (60) days after the transferee shall have agreed in writing to become responsible for the full performance of all of the conditions, liabilities, covenants and obligations of this Permit, then such action shall be deemed to have been approved. No approval of City shall be required for a transfer in trust, by mortgage, by other hypothecation, or by assignment of any rights, title or interest of Grantee in this Permit or the Cable Television System in order to secure indebtedness of Grantee. 17-422. RIGHT OF CITY TO PURCHASE SYSTEM A. City shall have the right at any time after fifteen (15) years after the effective date of this Permit granted herein to purchase the Cable Television System of Grantee located within the Service Area and to terminate this Permit, if the purchase is approved by a majority of the qualified electors of City voting at a special or general election. At any time after the right to purchase the Cable Television System of Grantee shall have accrued under the terms hereof, the question of the purchase of the Cable Television System may be submitted by the Council to the qualified electors of the City for approval. The question of the purchase of the Cable Television System of Grantee shall be submitted at the next succeeding election of the City upon petition to the Council of twenty-five percent (25 %) of the qualified electors of the City. Grantee shall be compensated for the fair market value of the Cable Television System located within the Service Area with such value to be determined by the majority of three (3) appraisers, one to be appointed by the Mayor of the City, one by Grantee, and the third by the first two appraisers. The appraisers shall be persons of recognized skill, ability and experience with respect to the appraisal and valuation of cable televisions systems. If Grantee shall refuse to select an appraiser for thirty (30) days after approval by the qualified electors of the City of the purchase, the value of the Cable Television System located within the Service Area shall be fixed by the vote of a majority of the Council. If the two (2) appraisers appointed by the Mayor and by Grantee shall fail to agree upon the third appraiser within thirty (30) days after their appointment, the third appraiser, upon the application of either City or Grantee, shall be appointed by the Presiding Judge of the District Court of Tulsa County, Oklahoma. B. The fair market value of the Cable Television System shall be determined by the majority of the appraisers within ninety (90) days after the appointment of the third appraiser. City shall have ninety (90) days from the receipt of written notice of the decision of the appraisers within which to pay Grantee in cash the appraised value of the Cable Television System. Until such payment, Grantee shall continue to operate the Cable Television System pursuant to the terms of this Permit, provided, that if between the date of the appraisal of the Cable Television System and the date of payment therefor, reasonable and necessary additions, betterments and replacements shall have been made by Grantee to the Cable Television System, City shall pay in addition to the value established by the appraisers the reasonable cost of such additions, betterments and replacements. 14 5704 1697 17-423. NON-DISCRIMINATION A. Grantee shall not deny any Person or group of potential cable Subscribers CD access to Cable Service because of race, color, religion, national origin, age, gender, physical handicap or the income of residents in the local area in which a Person or group resides. B. Grantee shall not discriminate in the rates or charges for Cable Services or in making available Cable Services or facilities of the System. Grantee shall not extend any preference or advantage to any Subscriber or potential Subscriber to the System or to any user or potential user of the System. Grantee may conduct promotional campaigns to stimulate subscriptions to Cable Services or other lawful uses of the System and Grantee may establish bulk billing rates and rate schedules for different classes of Subscribers and Cable Service which any Subscriber coming within such bulk billing group, rate or service classification shall be entitled. C. Grantee shall not discriminate against any employee or applicant for employment because of race, color, religion, age, gender or national origin. Grantee shall comply with all applicable laws and regulations of the United States and of Oklahoma with respect to employment and personnel practices. 17-424. MODIFICATION The City, after notice and public hearing, may modify this Permit to provide for such standards and exercise such powers, functions, rights or privileges as may now or hereafter be permitted, delegated or mandated by federal or state law, rule or regulation regarding the Cable System, Cable Service or Other Lawful Service. 17-425. MISCELLANEOUS PROVISIONS A. Grantee shall keep books and records for periods of time reasonably established by the City to determine compliance with the terms of this Permit. City, after reasonable notice, shall have the right to review the books and records, including any complaints, of Grantee during normal business hours as is reasonably necessary to monitor compliance with the terms hereof. Such records shall include, but shall not be limited to, any public records required to be kept by Grantee pursuant to the rules and regulations of the FCC. Grantee shall not be required to disclose information which it reasonably deems to be proprietary or confidential in nature; provided this exception shall not be construed to include financial records necessary to enable the City to determine compliance with Grantee's fee payment obligations. Subject to open meeting and record disclosure laws of the State of Oklahoma, City agrees to treat any information disclosed by Grantee to it on a confidential basis and only to disclose it to employees, representatives and agents thereof that have a need to know, or in order to enforce the provisions hereof. The Council may inspect the books and records of Grantee as necessary to determine compliance with the terms of this Permit, compel attendance of witnesses and may be ordinance revoke this permit as provided in Section 20 hereof for failure or refusal of Grantee or any officer, employee or agent thereof to testify or to produce such books or records. B. Copies of all Petitions, applications and communications submitted by Grantee to the FCC, or any other federal or state regulatory commission or agency having jurisdiction in respect to any matters affecting cable television operations authorized pursuant to this Permit, shall be submitted to the City Clerk upon request. C. Grantee shall pay the cost of publication of this Ordinance. 15 5704 1698 D. In the event City enters into a franchise, permit, license, authorization or other agreement of any kind with any Person other than Grantee or City for the purpose of constructing or operating a Cable Television System or providing Cable Service or Other Lawful Service within the same Service Area, which contains terms more commercially to or economically favorable with regard to government and educational Channels and service, System operational service standards, fees to the City or rates to Subscribers and users, or in the event City enters into a franchise, permit, license, authorization or other agreement of any kind with any Person other than Grantee for the purpose of constructing or operating a Cable Television System or providing Cable Service or Other Lawful Service within the same Service Area, which contains terms more favorable to City with regard to government and educational Channels and service, System operational service standards, fees to the City or rates to Subscribers and users, then Grantee and City shall meet, confer and, if deemed necessary by either, renegotiate in good faith the terms and conditions of this Permit relating to government and educational Channels and service, System operational service standards, fees to the City or rate to Subscribers and users. E. Notices or responses serviced upon City or Grantee shall be in writing, and shall be deemed to have been duly given to the required party three (3) business days after having been posted in a properly sealed and correctly addressed envelope by certified or registered mail, postage prepaid, at the Post Office or branch thereof regularly maintained by the U.S.. Postal Service. All notices or responses between the City and Grantee shall be addressed and delivered by certified or registered mail as follows: if to the City, City Clerk, City of Owasso, Owasso City Hall, P. O. Box 180, Owasso, Oklahoma 74055, with copies to the Mayor and the City Attorney at the same address; if to Grantee, Tulsa Cable Television, Inc., d/b /a TCI Cablevision of Tulsa, 8421 East 61st Street, Suite U, Tulsa, Oklahoma 74133. Any notice given by Grantee to the City Clerk shall be accompanied by instructions to the Clerk referencing this section and directing the Clerk to file and maintain such notice with the original of this Ordinance. City and Grantee my designate other addresses or addresses from time to time by giving notice to the other. 17-426. ACCEPTANCE BY GRANTEE A. Grantee shall file with the City Clerk of the City within twenty (20) days after passage and approval and prior to publication of this Ordinance a written acceptance of this Permit and the terms and conditions thereof as set out herein. B. Grantee by the acceptance of this Permit shall be deemed to have waived and released any claim the Grantee might have against the City by reason of a declaration, ruling or judgment by a court as to the invalidity of this Permit or any part thereof. 17-427. SEVERABILITY If any section, sentence, clause or phrase of this Ordinance or any part thereof is for any reason found to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remainder of this Ordinance of any part thereof. 17-428 This act shall be codified as Section 17 - 401 et seq. of the Owasso Municipal Ordinances. 16 5704 1699 17-429. By reason of the fact that the proposed Permit Ordinance would promote the health, safety, morals and general welfare of the inhabitants of the City of Owasso, Oklahoma, an emergency is declared to exist whereby the provisions of this ordinance shall take effect immediately upon passage and first publication, as provided by law. PASSED AND APPROVED, and the emergency clause ruled upon separately and approved by the City Council, this 20th day of December, 1994, AD. Charles Burris Vice Mayor for Mayor, Jerry Duke (SEAL) ATTEST: City clerk, Marcia Boutwell APPROVED: City Attorney, Ronald D. Cates 5704 1700 AFFIDAVIT OF PUBLICATION OWASSO REPORTER OWASSO March 20, 1997 FEE $ 63.25 Published in the Owasso Reporter, Owasso, Tulsa County, Oklahoma December 29, 1994. Coble Television Ordlinarme CITY OF OWASSO, OKLAHOMA Ordirmunce No. 493 AN ORDINANCE GRANTING A PERMIT TO TULSA CABLE TELEVI- SION, INC., DOING BUSINESS AS TCl GABLEVISION OF TULSA, TO PROVIDE CABLE TELEVISION AND OTHER LAWFUL SERVICES WITH. IN THE CITY OF OWASSO USING PUBLIC WAYS; DEFINING CERTAIN TERMS; PROVIDING SERVICE STANDARDS ANn Rill;: SUBSCRIBERS, THE CITY AND SCHOOLS; PROVIDING FOR COAAPU ANCE AND MONITORING OF CABLE SYSTEM OPERATIONS; ESTAB- LISHING EVENTS OF DEFAULT, PROVISIONS FOR PENALTIES AND REVOCATION OF THE PERMIT, REQUIRING: APPROVAL BY THE CITY FOR ASSIGNMENT OF THE PERMIT, PROVIDING FOR MODIFICATION OF THE PERMIT BY THE CITY; PROVIDING ARIGHT FOR THE CITY TO PURCHASE THE SYSTEM UNDER CERTAIN CONDITIONS. PROHIBIT- ING DISCRIMINATION IN OPERATION OF THE CABLE SYSTEM; REQUIRING ACCEPTANCE BY GRANTEE OF TERMS OF THE PERMIT; PROVIDING FOR SEVERABILITY; CODIFYING THE ORDINANCE; DECLARING AN EMERGENCY. , PASSED AND APPROVED, and the emergency dause ruled upon sepa- rately and approved by the City Council, this 201h day of December, 1994, Is/Charles Burris Charles Burris, Vice Mayor SEAL) For Mayor, Jerry Duke ATTEST: City Clerk, Marcia Boutwell APPROVED: /s/ Ronald D. Cates City Attorney, Ronald D. Cates memorandum TO THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: RODNEY J RAY CITY MANAGER SUBJECT: REQUEST FOR EMERGENCT CLAUSE TO BE ATTACHED TO ORDINANCE #493 DATE: December 14, 1994 BACKGROUND: Okalhoma state law provides for municipal ordinances to become effective thirty days after their passage and publication in a newspaper of general local circulation. The law, however, provides for an exception in cases wherein the delay of an ordinance's effective date would have a negative financial impact, or would result in unnecessary cost to the city, or have an otherwise substantial effect adverse on the public health and welfare. in those cases, the statues allow the municipal governing body to "attach" an "emergency clause" to the ordinance. The attachment of an emergency clause allows the ordinance to become effective immediately upon publication of the ordinance. The ordinance can then be fully enforced by the appropirate officials. The staff and City attorney have urged on many occasions, caution in the use of an emergency clause unless a true emergency exists. In this instance TCI has requsted an emergency clause. The primary concern is that the franchise under which TCI has been operating expired November 20, 1994. Although TCI has continued to provide cable TV service, it has been under a letter agreement. Until the permit ordinance becomes effective, either TCI nor the City are appropriatly protected by law. It is felt that this is, therefore, an appropriate use of the emergency clause. RECOMMENDATION: The staff has consulted with the City Attorney and will recommend Council approval of the attachment of an "emergency clause" to Ordinance #493. ATTACHMENT: 1. See Ordinance #493 contained with the previous agenda item. TCI CENTRAL, INC. February 17, 1995 City Council City of Owasso PO Box 180 Owasso, OK 74055 RE: Ordinance No. 493 An Ordinance Granting a Pen-nit to Tulsa Cable Television, Inc. Dear Ladies and Gentlemen: The undersigned, Tulsa Cable Television, Inc. d/b/a TCI Cablevision of Tulsa, does hereby accept as of December 20, 1994, the Permit granted by the City of Owasso, Oklahoma, passed and -o agree ed December 20, 1994, and does hereby that it will comply with and abide by all of the provisions, terms and conditions of the Permit, subject to applicable federal, state and local law. As a matter of clarification with regard to Section 17-410 B., the Grantee is currently collecting a permit fee in excess of three precent of gross operating revenues in other municipalities it serves in Tulsa County. As of the date of Ordinance No. 493, the City of Owasso has chosen not to exercise its right to receive a permit fee in excess of three percent. Subject to applicable federal, state and local law, at the time the City of Owasso desires to receive a permit fee in excess of three percent, the City shall notify the Grantee in writing of such increase. The increased permit fee will be payable by the grantee to the City after Grantee has provided a thirty-day written notice to its subscribers of the increased permit fee and the collection of the increased permit fee from its subscribers Very truly yours, TULSA CABLE TELEVISION, INC. Tom Van Bockern Executive Vice President IINSURED TULSA CABLE TELEVISION, INC. 5619 DTC PARKWAY ENGLEWOOD, CO 80111 COMPANY THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. Co TYPE OF INSURANCE POLICY NUMBER LTR POLICY EFFECTIVE !POLICY EXPIRATION LIMITS DATE (MM/DDNY) DATE (MM/DDNY) GENERAL LIABILITY A 7X COMMERCIAL UMB 8797649 -GENERAL AGGREGATE $ 1,000,000 CLAIMS MADE 1 X OCCUR PERSONAL & ADV INJURY $ 1 , 000,000 OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE $ 1, 000,000 FIRE DAMAGE (Any one fire) $ MED EXP (Any one person) $ I AUTOMOBILE LIABILITY ANY AUTO COMBINED SINGLE LIMIT $ ALL OWNED AUTOS BODILY INJURY SCHEDULED AUTOS (Per person) HIRED AUTOS BODILY INJURY NON-OWNED AUTOS (Per accident) PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE: $ EXCESS LIABILITY A x- UMB 8797649 EACH OCCURRENCE U00 0 - CCU - RR - $ 1 -0001 01-01-95 UMBRELLA FORM 01-01-96' 5,_000 AGGREGATE $ OTHER THAN UMBRELLA FORM WORKERS COMPENSATION AND WC STATU- EMPLOYERS' LIABILITY EL EACH ACCIDENT THE PROPRIETOR/ INCL PARTNERS/EXECUTIVE EL DISEASE - POLICY LIMIT $ OFFICERS ARE: EXCL' EL DISEASE - EA EMPLOYEE $ OTHER DESCRIPTION OF OPERATIONS /LOCATIONS/VEHICLES /SPECIAL ITEMS CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED ON THE GEN. LIAB. POLICY ABOVE, IF REQUIRED BY WRITTEN CONTRACT. CITY OF OWASSO PO BOX 180 OWASSO, OK 74055 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL - DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. MEMORANDUM TO: RODNEY J RAY FROM: LONNIE HARDIN SUBJECT: TCI PERMIT ORDINANCE DATE: December 15, 1994 BACKGROUND: TCI Cablevision of Tulsa has operated a cable television system within the city limits of Owasso since 1980 under a franchise granted by a vote of the people. The franchise is for a nonexclusive use, and expires by its own terms on November 20, 1994. during the course of the franchise, there have been several changes in federal law concerning the cable industry, the most notable being the cable communications policy act of 1984, which "deregulated" cable TV and the subsequent "re-regulation" of the industry by the cable act of 1992. The net effect of the changes is to place basic rate regulation in the hands of the FCC, with municipalities retaining a right to regulate rates, within limits, for some secondary services. The federal regulatory plan has not advanced nearly as rapidly as the cable technology. For that reason, it is proposed by staff and TCI that continued operations be under a permit system rather than a franchise. The proposed ordinance for a permit system would serve the same purpose as a franchise, but does not require a vote of the people in a special election, and allows the city more flexibility as technological advances dictate change. it should be noted that the proposed ordinance increases the permit fee from 3% to 5%, based upon TCI revenues. This 2% increase transles to an additional $20,000 income annually to the City. However, the increase will be passed on to the cunsumer in exactly the same manner as sales tax, and will appear as a separate line at the bottom of each monthyl cable bill. Based on an average billing, a 2% increase would add .39¢ to a customer's bill. this fee increase is a viable option which must be considered by the council, but the decision on whether to impose additional taxation upon Owasso residents rests solely with the Council. TC1 PERMIT ORDINANCE December 15, 1994 Page 2 In the TCI service area, Tulsa, Sand Springs and Sapulpa currently charge a 5% permit fee, while Broken Arrow, Jenks, Bristow, Catoosa, Claremore, Drumright, Glenpool, Keifer and Owasso remain at 3%. You should also be advised that the FCC has approved a federal regulatory fee pass through which will increase each bill .030 per month per subscriber December 1994 through February 1995, and a .04¢, per month through September, The ordinance maintains service standards, a mechanism for handling complaints, and provides for periodic checks for compliance. Further, any increase in compensation rate paid by TCI to any city in its Tulsa market area, is automatically paid to Owasso. Service upgrades are automatic also. The City Council retains authority to act in the event of default by TCI, or to regulate secondary rates if necessary. This ordinance is substantially similar to those enacted by Tulsa, Sand Springs and Sapulpa, RECOMMENDATION: Staff recommends passage of the proposed ordinance. ATTACHMENTS: 1. Proposed Ordinance #493