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ORDINANCE NO. 78-11
AN ORDINANCE OF THE CITY OF HILLSBORO, TEXAS, GRANTING TO CABLE T.V. OF
HILLSBORO, INC., ITS SUCCESSORS AND ASSIGNS, A FRANCHISE TO BUILD,
CONSTRUCT, OPERATE AND MAINTAIN A CABLE TELEVISION COMMUNICATIONS SYSTEM
IN THE CITY OF HILLSBORO, TEXAS; DEFINING TERMS AND THE FRANCHISE
TERRITORY; PROVIDING FOR DURATION OF THE FRANCHISE AND RENEWAL; PROVIDING
FOR A SCHEDULE OF COMMENCEMENT AND COMPLETION; FORTH MAXIMUM RATES TO BE
CHARGED; PROVIDING FOR AN ANNUAL FRANCHISE FEE; DESCRIBING THE TYPE OF
SYSTEM TO BE INSTALLED AND OPERATED; PROVIDING FOR THE USE OF CITY
STREETS AND RIGHTS OF WAY AND REGULATING SUCH USE; SETTING FORTH SERVICE
STANDARDS; PROVIDING FOR A COMPLAINT PROCEDURE; SETTING FORTH THE RIGHT
OF REVOCATION TO THE CITY AND MONETARY PENALTIES FOR BREACHES;
PROHIBITING DISCRIMINATORY PRACTICES; INCORPORATING APPLICATION FOR
FRANCHISE; PROVIDING FOR SEVERABILITY; AND SETTING FORTH AN EFFECTIVE
DATE.
WHEREAS, the City Council of the City of Hillsboro, Texas, has found and
determined that the public necessity and convenience of the City of Hillsboro,
Texas, would be served by a cable television communications system; and,
WHEREAS, the City Council of the City of Hillsboro, Texas, has concluded
full and open hearings on the 5th day of December, 1978, after public notice of
such hearings was duly published on the 13th day of November, 1978, during which
the applicant, interested parties and members of the public desiring to make
application and/or present statements concerning the grant of a cable television
franchise, were afforded an opportunity to do so; and,
WHEREAS, there being only one applicant, CABLE T.V. OF HILLSBORO, INC.,
and no objection to that applicant having been heard, and the qualifications,
construction programs and proposals of said applicant having been considered,
the application of said applicant, with variations and amendments, was approved.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HILLSBORO, TEXAS AS
FOLLOWS:
SECTION 1. DEFINITIONS
The following terms and phrases, as used herein, shall be given the
meaning set forth below:
A. "Cablecasting."
Programming carried on a cable system, exclusive of broadcast
signals, whether originated by the cable operator or any other party.
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B. "Cable Communications System;" "System."
Any system which receives and amplifies signals broadcast by one
or more television and/or radio stations and which transmits programming
originated by the system itself or by another party, and distributes such
signals and programming by wire, cable, microwave, satellite, or other means to
persons who subscribe to such service.
C. "City."
The City of Hillsboro, Texas, a municipal corporation in Hill
County, in its present incorporated form or as it may be changed by annexation.
D. "Council."
The City Council of the City of Hillsboro, Texas, the local
legislative body, or its designated representative.
E. "Grantee."
Cable T.V. of Hillsboro, Inc., a Texas corporation, and its
lawful successors and assigns, whose principal office is situated at 700 West
Airport Freeway, Suite 790 (P.O. Box 6034), Irving, Texas 75062.
F. "Gross Revenues."
Any and all compensation, in whatever form, exchange or
otherwise, derived by Grantee from the provision of all cable services to the
City, but shall not include any refunds or credit made to subscribers or any
taxes imposed on the service furnished by Grantee.
G. "Subscriber."
A recipient of cable television service from Grantee.
H. "F.C.C."
The Federal Communications Commission, the present Federal Agency
of that name as constituted by the Communications Act of 1934, or any successor
agency created by the United States Congress.
I. "Person."
Any individual, firm, partnership, association, corporation,
company or organization if any kind.
SECTION 2. GRANT OF AUTHORITY
A. There is hereby granted by the City to the Grantee, the right
and privilege to construct, erect, operate and maintain, in, upon, along,
across, above, over and under the streets, alleys, public ways and public places
now laid out or dedicated and all extensions thereof, and additions thereto in
the City, poles, wires, cables, underground conduits, manholes, and other cable
conductors and fixtures necessary for the maintenance and operation in the City
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of a Cable Communications System, to be used for the sale and distribution of
cable services to the residents of the City. Said broadband cable services shall
include, but shall not be limited to, the carriage of television and radio
signals and cable casting programming.
B. The Grantee shall, at all times during the operation of this
franchise, be subject to all lawful exercise of the police power as may be
hereafter provided by the City.
C. The rights and privileges herein granted shall not be
exclusive, the City reserving the right to make similar grants when such grant
or grants may be required by the public interest, convenience and necessity.
SECTION 3. FRANCHISE TERRITORY
A. The franchise is for the present territorial limits of the
City of Hillsboro, hill County, Texas, and for any area henceforth added thereto
during the term of this franchise.
B. Cable service shall be made available to the entire franchise
area in accordance with the construction time table contained in Section 5 of
this ordinance.
SECTION 4.DURATION OF FRANCHISE; RENEWAL
A. The duration of the rights, privileges and authorizations
hereby granted shall be fifteen (15) years from the date the franchise is
accepted by Grantee as provided in Section 17.
B. Grantee shall have the option to request renewal of this
franchise for an additional period not to exceed fifteen (15) years. The City
shall notify Grantee in writing at least six (6) months prior to the expiration
of the initial term of this franchise and so advise Grantee of the option
available to it for renewal as hereinafter provided. Should Grantee desire to
exercise this option, it shall so notify the City, in writing, not less than
three (3) months prior to expiration of this franchise. Upon exercise of this
option by Grantee, the City may at its option conduct a full, open, and public
renewal proceeding upon prior notice and opportunity of all interest parties to
be heard; however, the franchise may be renewed by City without such hearing.
The renewal proceeding shall be held for the purpose of considering Grantee's
performance under this franchise in order to determine whether to renew this
franchise. Renewal shall not be unreasonable denied and shall be granted unless
Grantee is found to be unqualified to continue operation of this cable
television system. If this franchise is renewed by the City, all of the terms
and provisions contained herein shall be controlling during the renewal period,
except to the extent that said terms and provision s are modified by the City,
or unless this franchise is superseded by a new franchise. Should the City, for
any reason, deny renewal of this franchise, such denial shall be accompanied by
a written statement setting forth the reasons for the denial. Grantee shall have
the right to request review of any such denial by any court of competent
jurisdiction. Furthermore, in the event that the City denies renewal, Grantee
shall be afforded a period of six (6) months following denial within which to
sell, transfer, or convey this cable television system to a qualified purchaser
at fair market value. During this six-month period, which shall run from the
effective date of the final order or decision denying renewal, including, any
appeal, Grantee shall have the right to operate this cable television system
pursuant to the terms of this franchise.
C. Should City fail to notify Grantee in writing at least six (6)
months prior to the expiration of the initial term of this franchise, then this
franchise shall be automatically
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renewed for an additional fifteen (15) year period.
SECTION 5. COMMENCEMENT AND COMPLETION OF CONSTRUCTION
A. Within sixty (60) days of the effective date of this
franchise, the Grantee must undertake the necessary steps to secure
authorization to operate from the F.C.C. and/or any other appropriate
governmental agencies regulating cable service. If authorization to operate is
not received within twelve (12) months of the effective date of this franchise,
the franchise may be canceled at the option of the City.
B. The Grantee shall begin construction immediately upon
receiving said authorization, and a significant portion of such construction (at
least one-third) shall be accomplished within twelve (12) months from receipt of
such governmental authorization. Thereafter Grantee shall equitably and
reasonably proceed to complete the necessary construction at the rate of not
less than one-third (1/3) each year until the entire franchise area is served.
SECTION 6. TRANSFER OR ASSIGNMENT
No transfer or assignment of the rights under this franchise or of
control of the cable system shall take place, whether by forced or voluntary
sale, lease, mortgage, assignment, encumbrance, or any other form of
disposition, without prior notice to and written approval by the City, which
approval will not be unreasonably withheld; however, the Grantee does retain the
right to transfer or assign its rights under this franchise for the purpose of
security for indebtedness to finance the system without written approval of the
City, so long as Communications Systems, Inc. continues its guarantee of
performance by said successor or assignee as provided in Section 17 hereof.
SECTION 7. RATES
A. The maximum rates which may be charged by the Grantee to
subscriber shall be as follows:
Basic Installation (initial)
First Additional Connection $37.50
Each Additional Connection 15.00
Relocation or Add Connection (at later Date)
First Connection 25.00
Each Additional Connection 15.00
Reconnect Service 15.00
Basic Monthly Service
First Connection 8.00
Each Additional Connection 2.00
Late Charge (after 15 days) .50
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B. All requests for increases and rates and/or charges shall be
subject to the approval or disapproval of the City Council after an appropriate
public hearing is held at which all interested parties are heard. Grantees shall
submit in writing all proposed rate increases to the City along with their
proposed effective date, and the City shall notify Grantee of the date of the
public hearing to be held on same. However, if no written objection or notice of
public hearing is submitted to Grantee by City within sixty (60) days from
receipt by City of the notice of such proposed rate increases, then such new
rates shall become effective immediately without a public hearing or approval by
the City.
SECTION 8. PAYMENT TO THE CITY
A. For the use of the streets, and other facilities of the
incorporated area of the City of Hillsboro, Texas for the operation of the cable
communications system and for the supervision thereof by the franchising
authority, during the first two (2) years from the date of this ordinance the
grantee shall pay to the franchising authority an amount equal to two percent
(2%) of the Grantees gross revenue from the operation of the Cable
Communications Systems in the incorporated area of the City of Hillsboro, Texas,
during the year. From and after the expiration of two (2) years from the date of
this ordinance, the Grantee shall pay to the franchising authority an amount
equal to three percent (3%) of the Grantees gross revenues from the operations
of the Cable Communications Systems in the incorporated area of the City of
Hillsboro, Texas, during the year.
B. The annual franchise fee shall be paid by Grantee to City at
its administration offices on or before February 1st of the year following the
close of the preceding calendar year.
C. Grantee shall submit to City with the annual franchise fee
payment such reasonable documentation or information as may be required by the
City reflecting the calculation of said franchise fee and the financial
information of Grantee upon which it was based.
SECTION 9. EQUIPMENT AND OPERATION
The minimum communications system agreed and permitted to be installed
and operated hereunder shall:
1. Be operated in conformance with the FCC's Technical Standards, 47
C.F.R. 76.601 et seq;
2. Have the capability of distributing signals on twenty (20) VHF
television channels, plus the capability of distribution four (4) or more FM
stereo radio signals;
3. Distribute all allowable VHF, UHF and FM signals on the system at all
hours when the signals are being broadcast by the TV and radio stations, all
pursuant to FCC's signal carriage rules;
4. Distribute all VHF, UHF and FM signals originating from any source
when available off the air at City for such distribution;
5. Provide a local television channel which will carry twenty-four (24)
hours each day time and weather information, except at such times as they are
presented on said local channel special local programs;
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6. Provide all other channels as proposed in the application of Grantee,
including a special sports channel, a special Christian broadcasting channel and
a special Education channel, all subject to FCC approval; and,
7. Distribute closed circuit television broadcasts and pay television
when available to the system in City, if there is sufficient demand by the
subscribers to the economically feasible.
However, the number of television channels made available to the public
shall depend upon the continuation of present signals from stations available at
this time and those commenced in the future, and subject to limitations and all
regulations of the FCC.
SECTION 10. USE OF STREETS
A. All transmission and distribution structures, lines, and
equipment erected by the Grantee within the City shall be so located as to cause
minimum interference with the rights and reasonable convenience of property
owners who adjoin any of the said streets.
B. In case of disturbance of any street or paved area the Grantee
shall, at its own cost and expense and in a manner approved by the City, replace
and restore such street or paved area.
C. If at anytime during the period of the franchise the city
shall lawfully elect to alter or change the grade of any street, the Grantee,
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.
D. Any poles or other fixtures placed in or adjacent to any
street by the Grantee shall be placed in such manner as to comply with all
requirements of the City.
E. The Grantee shall, at the request of any person holding a
moving permit issued by the City, temporarily raise or lower its wires to permit
the moving of buildings. The expense of such temporary removal or raising or
lowering of wires shall be paid by the person requesting the same, and the
Grantee shall have the authority to require such payment in advance. The Grantee
shall be given not less than forty-eight (48) hours advance notice to arrange
for such temporary wire changes.
F. The Grantee shall have the authority to trim trees upon and
overhanging streets of the City so as to prevent the branches of such trees from
coming in contact with the wires and cables of the Grantee.
G. In all sections of the City were the cables, wires, or other
like facilities of public utilities are placed underground, the Grantee shall
likewise place its cables, wires or other facilities underground.
H. At the expiration of the term for which the franchise is
granted, or upon its termination and cancellation, as provided for herein, the
City shall have the right to require the Grantee to remove at its own expense
all portions of the cable television system from all streets within the City.
SECTION 11. INDEMNIFICATION
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A. It shall be expressly understood and agreed by and between the
City and the Grantee hereunder that the Grantee shall save the City and its
agents and employees harmless from and against all claims, damages, losses, and
expenses, including attorney's fees sustained by the City on account of any
suit, judgment, execution, claim or demand whatsoever arising out of but not
limited to copyright infringements and all other damages arising out of the
installation, operation or maintenance of the cable system authorized herein,
whether or not any act or omission complained of is authorized, allowed or
prohibited by this ordinance and any franchise granted hereunder.
B. Grantees shall procure and furnish and file with the City
evidence of a valid policy or policies of liability insurance approved by the
City covering liability and property damage with minimum amounts of liability
thereunder as follows: One Hundred Thousand Dollars ($100,000) for any one
single personal injury to any one person; Three Hundred Thousand Dollars
($300,000) for all personal injury in any one single accident or occurrence;
and, Five Hundred Thousand Dollars ($500,000) for liability due to property
damage.
SECTION 12. SERVICE STANDARDS
A. The Grantee shall put, keep, and maintain all parts of the
system in good condition throughout the entire franchise period.
B. Upon termination of service to any subscriber, the grantee
shall promptly remove all of its facilities and equipment from the premises of
such subscriber upon his or her written request.
C. Grantee shall render efficient service, make repairs promptly,
and interrupt service only for good cause and for the shortest time possible.
Such interruptions, insofar as possible, shall be preceded by notice and shall
occur during periods of minimum system use.
D. Grantee shall not allow its cable or other operations to
interfere with television reception of persons not served by
PAGE MISSING
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SECTION 14. RIGHT OF REVOCATION; FORFEITURE
A. If Grantee should violate any of the terms, conditions or
provisions of this franchise or if Grantee should fail to comply with any
reasonable provisions of any ordinance of the City regulating the use by Grantee
of the streets, alleys, easements or public ways of the City, and should Grantee
further continue to violate or fail to comply with the same for a period of
thirty (30) days after Grantee shall have been notified in writing by the City
to cease and desist from any such violation or failure to comply so specified,
then Grantee may be deemed to have forfeited and annulled and shall thereby
forfeit and annul all the rights and privileges granted by this franchise;
provided that such forfeiture shall be declared only by written decision of the
City Council after an appropriate public proceeding before the City Council
affording Grantee due process and full opportunity to be heard and to respond to
any such notice of violation or failure to comply; and provided further that the
City Council may, in its discretion and upon a finding of violation or failure
to comply, impose a lesser penalty than forfeiture of this franchise or excuse
the violation or failure to comply upon a showing by Grantee of mitigating
circumstances.
B. Grantee shall have the right to appeal any finding of
violation or failure to comply and any resultant penalty to any court of
competent jurisdiction.
C. In the event that forfeiture is imposed upon Grantee, it shall
be afforded a period of six (6) months within which to sell, transfer, or convey
this cable television system to a qualified purchaser, approved by City, at fair
market value. During this six (6) month period, which shall run from the
effective date of the final order of decision imposing forfeiture, including any
appeal, Grantee shall have the right to operate this cable television system
pursuant to the provisions of this franchise.
D. In the event the Grantee shall be adjudicated bankrupt or
placed in receivership, the City may by resolution declare the franchise herein
granted to be forfeited and terminated.
SECTION 15. PREFERENTIAL OR DISCRIMINATORY PRACTICES PROHIBITED
Grantee shall not, as to rates, charges, services, services facilities,
rules, regulations, employment, or in any other respect, make or grant any undue
preference or advantage to any party, nor subject any party to any prejudice or
disadvantage.
SECTION 16. GRANTEE'S APPLICATION INCORPORATED
By its acceptance of the franchise, Grantee specifically agrees that its
application for this franchise (dated October 9, 1978 and submitted by
Communications Systems, Inc.) is hereby incorporated by reference and made a
part of this ordinance. In the event of a conflict between proposed services
listed in said application and the provisions of this ordinance, that provision
which provides the greatest benefit to the City, in the opinion of the City
Council, shall prevail. Failure to provide services as promised in Grantee's
application as incorporate herein shall be deemed a breach of this ordinance to
which the provisions of Section 14 of this ordinance shall apply. However,
Grantee may substitute programs which will provide to the subscribers in the
City increased and maximum benefit and appeal.
SECTION 17. ACCEPTANCE; EFFECTIVE DATE
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A. Grantee shall have fifteen (15) days after the effective date
of this ordinance in which to file its written acceptance thereof with the City,
and such acceptance must include a guarantee of the performance by Grantee of
all of its obligations under the terms of this franchise by its affiliated
corporation, Communications Systems, Inc., a Texas Corporation, which guarantee
shall remain in full force and effect during the term of this franchise.
B. This ordinance shall take effect and be in force from and its
acceptance of Grantee and guarantee by Communications System Inc. Upon filing of
such acceptance and guarantee, Grantee shall also furnish to the City the
policies of liability insurance provided for herein or certificates representing
same. The guarantee by Communications Systems, Inc. shall be executed by a duly
authorized office of said corporation who must demonstrate proof of his
corporate authority.
SECTION 18. RULES APPLICABLE
This franchise is governed by and subject to all applicable rules and
regulations of the Federal Communications Commission, specifically including
Part 76, and by the laws of the State of Texas, and the Charter and all
ordinances of the City. Should there by any modifications of the provisions of
Section 76.31 of the Rules and Regulations of the Federal Communications
Commission which must be incorporated into this franchise, the City and Grantee
agree that such incorporation shall be accomplished within the time schedule set
forth in the FCC's rules.
SECTION 19. PUBLIC SERVICE CONNECTION
Grantee shall as a public service install in and make available to each
of the following named public buildings one (1) cable television connection
without any charge whatsoever, including installation, and shall maintain each
such service during the term of this franchise. Such building are the City Fire
Station, City Administration Building and each public school in the City now
existing, or hereinafter constructed, so long as the same are within two hundred
(200) feet of existing service of Grantee.
SECTION 20. NOTICES
All notices provided for in this franchise ordinance shall be deemed
delivered forty-eight (48) hours after the deposit of same in the U.S. Mail by
either party, properly addressed to the other party at the addresses given
below, postage prepaid and certified, return receipt requested, whether actually
received or not. The address for the City shall be The City of Hillsboro, P.O.
Box 568, Hillsboro, Texas 76645. The address for the Grantee shall be Cable T.V.
of Hillsboro, Inc., P.O. Box 6034, Irving, Texas 75062. Either party shall
notify the other in writing if there is any change of the above address during
the term of this ordinance.
SECTION 21. SEVERABILITY
If any section, sentence, clause or phrase of the ordinance is held
unconstitutional or otherwise invalid, such informity shall not affect the
validity of the ordinance, and andy portions in conflict are hereby repealed.
Provided, however, that in the event that the Federal Communications Commission
declares any section invalid, then such section or sections shall be
renegotiated by the City and the Grantee.
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PASSED AND APPROVED on this the 19th day of December, 1978.
CITY OF HILLSBORO, TEXAS
BY: /s/ HARRY F. BLOUNT
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Harry F. Blount, Mayor
ATTEST:
/s/ PATRICIA CROMEANS
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Patricia Cromeans, Secretary
APPROVED AS TO FORM:
BY: /s/ JAMES A. SHOWERS
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James A. Showers, City Attorney
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ORDINANCE NO 88-9
AN ORDINANCE AMENDING ORDINANCE NO 78-11, CITY OF HILLSBORO, TEXAS,
GRANTING TO CABLE TV OF HILLSBORO, INC. A FRANCHISE TO CONSTRUCT, OPERATE
AND MAINTAIN A CABLE TELEVISION COMMUNICATIONS SYSTEM IN THE CITY OF
HILLSBORO BY AMENDING SECTION 1, DEFINITIONS, SUBSECTION E, GRANTEE, TO
DEFINE GRANTEE AS HILLSBORO CABLE TV, LIMITED PARTNERSHIP; BY AMENDING
SECTION 4, DURATION OF FRANCHISE; RENEWAL, SUBSECTIONS A AND B, TO
PROVIDE A TERMINATION DATE, AND TO PROVIDE FOR COMPLIANCE WITH PROCEDURES
AUTHORIZED BY SECTION 626 OF THE CABLE COMMUNICATIONS POLICY ACT OF 1984;
BY REPEALING SECTION 4, DURATION OF FRANCHISE, RENEWAL; BY AMENDING
SECTION 9, EQUIPMENT AND OPERATION, SUBSECTION 1, TO REQUIRE A BIANNUAL
PROOF OF PERFORMANCE TEST; BY AMENDING SECTION 11, INDEMNIFICATION,
SUBSECTION B, TO REQUIRE GRANTEE TO FURNISH THE CITY ADDITIONAL LIABILITY
INSURANCE; BY AMENDING SECTION 20, NOTICES, TO REFLECT THE CORRECT
ADDRESS OF GRANTEE; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT HEREWITH; CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Hillsboro, Texas, granted a
franchise to build, construct, operate and maintain a cable television
communications system in the City of Hillsboro, Texas, to Cable TV of Hillsboro,
Inc., by Ordinance No. 78-11, on December 19, 1978; and,
WHEREAS, the City Council of the City of Hillsboro, Texas, has given
written approval for the transfer and assignment of said franchise to HILLSBORO
CABLE TV, LIMITED PARTNERSHIP; and,
WHEREAS, the City Council of the City of Hillsboro, Texas, has found and
determined that Ordinance No. 78-11, should be amended to reflect the change in
ownership of said franchise, as well as to comply with certain amendments to
Federal and State law;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HILLSBORO, TEXAS, AS FOLLOWS:
Section 1. That SECTION 1, DEFINITIONS, Subsection E, "GRANTEE", of
Ordinance No. 78-11, City of Hillsboro, Texas, be, and it is hereby amended to
read as follows:
SECTION 1. DEFINITIONS
E. "GRANTEE".
HILLSBORO CABLE TV, LIMITED PARTNERSHIP, and its lawful successors and
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assigns, whose mailing address is P.O. Box 580279, Houston, Texas 77258-0279
Section 2. That SECTION 4, DURATION OF FRANCHISE; RENEWAL, Subsections A
and B, Ordinance No. 78-11, City of Hillsboro, Texas, be, and they are hereby
amended to read as follows:
SECTION 4. DURATION OF FRANCHISE; RENEWAL
A. This franchise and all of the rights, privileges, and authorizations
hereby granted shall terminate on December 20, 1993.
B. Procedures for renewal of this franchise shall comply with Section 626
of the Cable Communications Policy Act of 1984.
Section 3. That SECTION 4, DURATION OF FRANCHISE; RENEWAL, Subsection C,
Ordinance No. 78-11, City of Hillsboro, Texas, be, and it is hereby repealed.
Section 4. That SECTION 9, EQUIPMENT AND OPERATION, Subsection 1,
Ordinance No. 78-11, City of Hillsboro, Texas, be, and it is hereby amended to
read as follows:
SECTION 9. EQUIPMENT AND OPERATION
The minimum communications system agreed and permitted to be installed
and operated hereunder shall:
1. Be operated in conformance with the FCC's Technical Standards, 47
C.F.R. 76.601 et seq. Grantee shall run a Proof of Performance test every other
year during the term of this franchise, the results of which shall be reported
to the City Council, as follows:
(1) On February 12, 1989.
(2) On February 12, 1991.
(3) On February 12, 1993.
In the event Grantee fails to so test and submit the results thereof to
the City Council within thirty (30) days of the dates specified, the City will
notify Grantee of its violation of the terms of this Section, and Grantee shall
be given an additional thirty (30) days to remedy said violation. Failure to so
test and submit the results thereof to the City Council after notification shall
invoke the provisions of Section 14 hereof.
Section 5. That SECTION 11, INDEMNIFICATION, Subsection B, Ordinance No.
78-11, City of Hillsboro, Texas, be, and it is hereby amended to read as
follows:
SECTION 11. INDEMNIFICATION
B. Grantees shall procure and at all times thereafter maintain in full
force and effect at its sole expense, and shall file with the City an acceptable
policy or policies of liability insurance, including comprehensive general
liability insurance products/completed operations liability, personal injury
liability, owners and contractors protective liability, and broad form property
damage, in minimum amounts of One Million Dollars ($1,000,000.00) per
occurrence, as well as a policy or policies of automobile liability (owned;
nonowned and hired automobiles) in minimum amounts of One Million Dollars
($1,000,000.00) per occurrence. The policy or
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policies shall name as primary insured the City, and in their capacity as such,
their officers, agents and employees.
The policy or policies of insurance shall be maintained by the Grantee in
full force and effect during the entire term of the franchise. Each policy of
insurance shall contain a statement on its face that the insurer will not cancel
the policy or fail to renew the policy, whether for nonpayment of premium, or
otherwise, and whether at the request of the Grantee or for other reasons,
except after thirty (30) calendar days advance of written notice mailed by the
insurer to the City Manager, and that such notice shall be transmitted postage
prepaid, certified mail, with return receipt requested.
Section 6. That SECTION 20, NOTICES, Ordinance No. 78-11, City of
Hillsboro, Texas, be, and it is hereby amended to read as follows:
SECTION 20. NOTICES
All notices provided for in this franchise ordinance shall be deemed
delivered forty-eight (48) hours after the deposit of same in the U.S. Mail by
either party, properly addressed to the other party at the addresses given
below, postage prepaid and certified, return receipt requested, whether actually
received or not. The address for the City shall be The City of Hillsboro, p.O.
Box 568, Hillsboro, Texas 76645. The address for the Grantee shall be Hillsboro
Cable TV, Limited Partnership, P.O. Box 580279, Houston, Texas 77258-0279.
Section 7. That all ordinances or parts of ordinances in conflict with
this ordinance are to the extent of said conflict hereby repealed.
Section 8. If any section, sentence, clause or phrase of this ordinance
is held unconstitutional or otherwise invalid, the same shall not in any manner
be construed as to affect the validity of the remainder of this ordinance as a
whole or any part or provision hereby, other than the parts so decided to be
invalid or unconstitutional. Provided, however, that in the event that the
Federal Communications Commission declares any section invalid, then such
section or sections shall be renegotiated by the City and the Grantee.
Section 9. This ordinance shall take effect and be in force from and
after its passage.
PASSED AND APPROVED on second reading in open Council on this the
day of September, 1988.
/s/ HENRY MOORE
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Henry Moore, Mayor
ATTEST:
/s/ SUSAN MOCIO
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Susan Mocio, City Secretary
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ORDINANCE NO. 90-10
AN ORDINANCE AMENDING ORDINANCE NO. 78-11, CITY OF HILLSBORO, TEXAS, AS
AMENDED BY ORDINANCE NO. 88-9, GRANTING A FRANCHISE TO CONSTRUCT, OPERATE
AND MAINTAIN A CABLE TELEVISION COMMUNICATIONS SYSTEM IN THE CITY OF
HILLSBORO BY AMENDING SECTION 1, DEFINITIONS, SUBSECTION E, GRANTEE, TO
DEFINE GRANTEE AS SLT CABLE TV, INC., BY AMENDING SECTION 4, DURATION OF
FRANCHISE; RENEWAL, SUBSECTION A, TO PROVIDE FOR A NEW TERMINATION DATE;
BY AMENDING SECTION 7, RATES, TO PROVIDE MAXIMUM RATES FOR FOUR YEARS
FROM THE EFFECTIVE DATE OF THIS ORDINANCE; BY AMENDING SECTION 20,
NOTICES, TO REFLECT THE CORRECT ADDRESS OF GRANTEE; REPEALING ALL
ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; CONTAINING A
SEVERABILITY CLAUSE; AND PROVIDING FOR A METHOD OF PUBLICATION AND AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Hillsboro, Texas, granted a
franchise to build, construct, operate and maintain a cable television
communications system in the City of Hillsboro, Texas, to CABLE TV OF HILLSBORO,
INC., by Ordinance No. 78-11, on December 19, 1978; and,
WHEREAS, the City Council of the City of Hillsboro, Texas, transferred
and assigned said franchise to HILLSBORO CABLE TV, LIMITED PARTNERSHIP by
Ordinance No. 88-9, on September 20, 1988; and,
WHEREAS, the City Council of the City of Hillsboro, Texas, has given
approval for the transfer and assignment of said franchise to SLT CABLE TV,
INC.; and,
WHEREAS, the City Council of the City of Hillsboro, Texas, has found and
determined that Ordinance No. 78-11, as amended by Ordinance No. 88-9, should be
amended to reflect the change in ownership of said franchise, as well as comply
with certain agreements between the City Council and SLT CABLE TV, INC.
regarding maximum rates to be charged and the date that said franchise will
terminate;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HILLSBORO, TEXAS, AS FOLLOWS:
Section 1. That SECTION 1, DEFINITIONS, Subsection E, "GRANTEE", of
Ordinance No. 78-11, as amended by Ordinance No. 88-9, City of Hillsboro, Texas,
be, and it is hereby amended to read as follows:
SECTION 1. DEFINITIONS
E. "GRANTEE".
15
SLT CABLE TV, INC. and its lawful successors and assigns, whose mailing
address is 14141 Southwest Freeway, 6th Floor, P.O. Box 650, Sugar Land, Texas
77479.
Section 2. That SECTION 4, DURATION OF FRANCHISE; RENEWAL, Subsection A,
Ordinance No. 78-11, as amended by Ordinance No. 88-9, City of Hillsboro, Texas,
be and it is hereby amended to read as follows:
SECTION 4. DURATION OF FRANCHISE; RENEWAL
A. This franchise and all of the rights, privileges, and authorizations
hereby granted shall terminate ten (10) years from December 20, 1993.
Section 4. That SECTION 7, RATES, SUBSECTIONS A., Ordinance No. 78-11,
City of Hillsboro, Texas, be, and it is hereby amended to read as follows:
SECTION 7. RATES
A. The maximum rates which may be charged by the Grantee for four years
from the effective date of this ordinance shall be as follows:
MONTHLY FEES
(for one television)
Basic service (all channels except channels 2, 7, 17, & 20)
$15.95 plus $1.67 tax = $17.62
Basic service with one movie channel
$23.90 plus $2.51 tax = $26.41
Basic service with two movie channels
$31.85 plus $3.34 tax = $35.19
Basic service with three movie channels
$39.80 plus $4.18 tax = $43.98
Basic service with four movie channels
$47.75 plus $5.01 tax = $52.76
Additional outlets are $2.00 plus tax per month.
One converter box is furnished free of charge. Additional converter boxes are
$2.00 plus tax per month.
Remote control converter boxes are available at $4.00 plus tax per month.
In the event that the City requests the addition of the Home Sports
Entertainment Channel (HSE), the 75 cent monthly rate per subscriber will be
added to the above rate schedule.
16
SERVICE CHARGES
Installation fee (up to two outlets) $29.95
Additional outlet installation $15.00
Move outlet $15.00
Switch or add pay services $15.00
Trip charge for any service not specifically
noted, such as hooking up a VCR $15.00
Reconnect $15.00
Section 6. That SECTION 20, NOTICES, Ordinance No. 78-11, as amended by
Ordinance No. 88-9, City of Hillsboro, Texas, be, and it is hereby amended to
read as follows:
SECTION 20. NOTICES
All notices provided for in this franchise ordinance shall be deemed
delivered forty-eight (48) hours after the deposit of same in the U.S. Mail by
either party, properly addressed to the other party at the addresses given
below, postage prepaid and certified, return receipt requested, whether actually
received or not. The address for the City shall be The City of Hillsboro, P.O.
Box 568, Hillsboro, Texas 76645. The address for the Grantee shall be SLT Cable
TV, Inc., P.O. Box 650, Sugar Land, Texas 77479.
Section 7. That all ordinances or parts of ordinances in conflict with
this ordinance are to the extent of said conflict hereby repealed.
Section 8. If any section, sentence, clause or phrase of this ordinance
is held unconstitutional or otherwise invalid, the same shall not in any manner
be construed as to affect the validity of the remainder of this ordinance as a
whole or any part or provision hereby, other than the parts so decided to
invalid or unconstitutional. Provided, however, that in the event that the
Federal Communications Commission declares any section invalid, then such
section or sections shall be renegotiated by the City and the Grantee.
Section 9. This ordinance shall take effect and be in force after
publication one time in the official newspaper of the City of Hillsboro, which
publication shall be sufficient if it contains the caption hereof.
PASSED AND APPROVED on second reading in open Council on this the
day of June 1990.
/s/ HENRY MOORE
-------------------
Henry Moore, Mayor
ATTEST:
/s/ SUSON MOCIO
- ---------------------------
Susan Mocio, City Secretary
17
ORDINANCE NO. 93-11-03
AN ORDINANCE OF THE CITY OF HILLSBORO; PRESCRIBING REGULATIONS FOR RATES
CHARGED TO CABLE TELEVISION SUBSCRIBERS FOR THE BASIC SERVICE TIER;
PROVIDING THAT THIS ORDINANCE IS CUMULATIVE; PROVIDING A SEVERABILITY
CLAUSE; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Federal Communications Commission ("FCC") has issued rules
pursuant to the Cable Television Consumer Protection and Competition Act, Pub.
L. No. 102-385 (1992) ("1992 Cable Act"), implementing the regulation of cable
television subscriber rates; and
WHEREAS, these rules allocate the regulation of rates for the basic
service tier and associated equipment rates to local franchising authorities and
require local authorities to become certified and adopt their own regulations
governing the process of rate regulation; and
WHEREAS, the City of Hillsboro franchises cable television service for
the benefit of its citizens; and
WHEREAS, the city has submitted its application for certification to the
FCC and it is expedient to adopt the required regulations now, in order to
implement regulations at the earliest possible date to obtain the most
competitive rates for the city's cable ratepayers; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HILLSBORO:
SECTION 1. DEFINITIONS.
In this ordinance:
BASIC CABLE RATES means the monthly charges for a subscription to the
basic service tier and the associated equipment.
BASIC SERVICE TIER means a separately available service tier to which
subscription is required for access to any other tier of service, including as a
minimum, but not limited to, all must-carry signals, all PEG channels, and all
domestic television signals other than superstations.
BENCHMARK means a per channel rate of charge for cable service and
associated equipment which the FCC has determined is reasonable.
CABLE ACT OF 1992 means the Cable Television Consumer Protection and
Competition Act of 1992.
CABLE OPERATOR means any person or group of persons:
(A) who provide cable service over a cable system and directly or
through one more affiliates owns a significant interest in such a cable system;
or
18
(B) who otherwise controls or is responsible for, through any
arrangement, the management and operation of such a cable system.
CHANNEL means a unit of cable service identified and selected by a
channel number or similar designation.
COST OF SERVICE SHOWING means a filing in which the cable operator
attempts to show that the benchmark rate or the price cap is not sufficient to
allow the cable operator to fully recover the costs of providing the basic
service tier and to continue to attract capital.
FCC means the Federal Communications Commission.
INITIAL BASIC CABLE RATES means the rates that the cable operator is
charging for the basic service tier, including charges for associated equipment,
at the time the city notifies the cable operator of the city's qualification and
intent to regulate basic cable rates.
MUST-CARRY SIGNAL means the signal of any local broadcast station (except
superstations) which is required to be carried on the basic service tier.
PEG CHANNEL means the channel capacity designated for public,
educational, or governmental use, and facilities and equipment for the use of
that channel capacity.
PRICE CAP means the ceiling set by the FCC on future increases in basic
cable rates regulated by the city, based on a formula using the GNP fixed weight
price index, reflecting general increases in the cost of doing business and
changes in overall inflation.
REASONABLE RATE STANDARD means a per channel rate that is at, or below,
the benchmark or price cap level.
SUPERSTATION means any non-local broadcast signal secondarily transmitted
by satellite.
SECTION 2. INITIAL REVIEW OF BASIC CABLE RATES.
(a) NOTICE. Upon the adoption of this ordinance and the certification of
the city by the FCC, the city shall immediately notify all cable operators in
the city, by certified mail, return receipt requested, that the city intends to
regulate subscriber rates charged for the basic service tier and associated
equipment as authorized by the Cable Act of 1992.
(b) CABLE OPERATOR RESPONSE. Within 30 days of receiving notice from the
city, a cable operator shall file with the city, its current rates for the basic
service tier and associated equipment and any supporting material concerning the
reasonableness of its rates.
(c) EXPEDITED DETERMINATION AND PUBLIC HEARING. (1) If the city council
is able to expeditiously determine that the cable operator's rates for the basic
service tier and associated equipment are within the FCC's reasonable rate
standard, as determined by the applicable benchmark, the city council shall:
(A) hold a public hearing at which interested persons may express
their views; and
19
(B) act to approve the rates within 30 days from the date the
cable operator filed its basic cable rates with the city.
(2) If the city council takes no action within 30 days from the date
the cable operator filed its basic cable rates with the city, the proposed rates
will continue in effect.
(d) Extended review period. (1) If the city council is unable to
determine whether the rates in issue are within the FCC's reasonable rate
standard based on the material before it, or if the cable operator submits a
cost-of-service showing, the city council shall, within 30 days from the date
the cable operator filed its basic cable rates with the city and by adoption of
a formal resolution, invoke the following additional periods of time, as
applicable, to make a final determination:
(A) 90 days if the city council needs more time to ensure that a
rate is within the FCC's reasonable rate standard; or
(B) 150 days if the cable operator has submitted a
cost-of-service showing seeking to justify a rate above the applicable
benchmark.
(2) If the city council has not made a decision within the 90 or 150
day period, the city council shall issue a brief written order at the end of the
period requesting the cable operator to keep accurate account of all amounts
received by reason of the proposed rate and on whose behalf the amounts are
paid.
(e) PUBLIC HEARING. During the extended review period and before taking
action on the proposed rate, the city council shall hold at least one public
hearing at which interested persons may express their views and record
objections.
(f) OBJECTIONS. An interested person who wishes to make an objection to
the proposed initial basic rate may request the city secretary to record the
objection during the public hearing or may submit the objection in writing
anytime before the decision resolution is adopted. In order for an objection to
be made part of the record, the objector must provide the city secretary with
the objector's name and address.
(g) BENCHMARK ANALYSIS. If a cable operator submits its current basic
cable rate schedule as being in compliance with the FCC's reasonable rate
standard, the city council shall review the rates using the benchmark analysis
in accordance with the standard form authorized by the FCC. Based on the city
council's findings, the initial basic cable rates shall be established as
follows:
(1) If the current basic cable rates are below the benchmark, those
rates shall become the initial basic cable rates and the cable operator's rates
will be capped at that level.
(2) If the current basic cable rates exceed the benchmark, the rates
shall be the greater of the cable operator's per channel rate on September 30,
1992, reduced by 10 percent, or the applicable benchmark, adjusted for inflation
and nay change in the number of channels occurring between September 30, 1992
and the initial date of regulation.
(3) If the current basic cable rates exceed the benchmark, but the
cable operator's per channel rate was below the benchmark on September 30, 1992,
the initial basic cable rate shall be the benchmark, adjusted for inflation.
20
(h) COST-OF-SERVICE SHOWINGS. If a cable operator does not wish to reduce
the rates to the permitted level, the cable operator shall have the opportunity
to submit a cost-of-service showing in an attempt to justify a initial basic
cable rates above the FCC's reasonable rate standard. The city council will
review a cost-of-service submission pursuant to FCC standards for cost-
of-service review. The city council may approve initial basic cable rates above
the benchmark if the cable operator makes the necessary showing; however, a
cost-of-service determination resulting in rates below the benchmark or below
the cable operator's September 30, 1992 rates minus 10 percent, will prescribe
the cable operator's new rates.
(i) DECISION. (1) BY FORMAL RESOLUTION. After completion of its review of
the cable operator's proposed rates, the city council shall adopt its decision
by formal resolution. The decision shall include one of the following:
(A) If the proposal is within the FCC's reasonable rate standard
or is justified by a cost-of-service analysis, the city council shall approve
the initial basic cable rates proposed by the cable operator; or
(B) If the proposal is not within the FCC's reasonable rate
standard and the cost-of-service analysis, if any, does not justify the proposed
rates, the city council shall establish initial basic cable rates that are
within the FCC's reasonable rate standard or that are justified by a
cost-of-service analysis.
(2) ROLLBACKS AND REFUNDS. If the city council determines that the
initial basic cable rates as submitted exceed the reasonable rate standard or
that the cable operator's cost-of-service showing justifies lower rates, the
city council may order the rates reduced in accordance with Paragraph (g) or (h)
above, as applicable. In addition, the city council may order the cable operator
to pay to subscribers, refunds of the excessive portion of the rates with
interest (computed at applicable rates published by the Internal Revenue Service
for tax refunds and additional tax payments), retroactive to September 1, 1993.
The method for paying any refund and the interest rate will be in accordance
with FCC regulations as directed in the city council's decision resolution.
(3) STATEMENT OF REASONS FOR DECISION AND PUBLIC NOTICE. If rates
proposed by a cable operator are disapproved in whole or in part, or if there
were objections made by other parties to the proposed rates, the resolution must
state the reasons for the decision and the city council must give public notice
of its decision. Public notice will be given by advertisement once in the
official newspaper of the city.
(j) APPEAL. The city council's decision concerning rates for the basic
service tier or associated equipment, may be appealed to the FCC in accordance
with applicable federal regulations.
SECTION 3. REVIEW OF REQUEST FOR INCREASE IN BASIC CABLE RATES.
(a) NOTICE. A cable operator in the city who wishes to increase the rates
for the basic service tier or associated equipment shall file a request with the
city and notify all subscribers at least 30 days before the cable operator
desires the increase to take effect. This notice may not be given more often
than annually and not until at least one year after the determination of the
initial basic cable rates.
21
(b) EXPEDITED DETERMINATION AND PUBLIC HEARING. (1) If the city council
is able to expeditiously determine that the cable operator's rate increase
request for basic cable service is within the FCC's reasonable rate standard, as
determined by the applicable price cap, the city council shall:
(A) hold a public hearing at which interested persons may express
their views; and
(B) act to approve the rate increase within 30 days from the date
the cable operator filed its request with the city.
(2) If the city council takes no action within 30 days from the date
the cable operator filed its request with the city, the proposed rates will go
into effect.
(c) EXTENDED REVIEW PERIOD. (1) If the city council is unable to
determine whether the rate increase is within the FCC's reasonable rate standard
based on the material before it, or if the cable operator submits a
cost-of-service showing, the city council shall, by adoption of a formal
resolution, invoke the following additional periods of time, as applicable to
make a final determination:
(A) 90 days if the city council needs more time to ensure that
the requested increase is within the FCC's reasonable rate standard as
determined by the applicable price cap; and
(B) 150 days if the cable operator has submitted a
cost-of-service showing seeking to justify a rate increase above the applicable
price cap.
(2) The proposed rate increase is tolled during the extended review
period.
(3) If the city council has not made a decision within the 90 or 150
day period, the city council shall issue a brief written order at the end of the
period requesting the cable operator to keep accurate account of all amounts
received by reason of the proposed rate increase and on whose behalf the amounts
are paid.
(d) PUBLIC HEARING. During the extended review period and before taking
action on the requested rate increase, the city council shall hold at least one
public hearing at which interested persons may express their views and record
objections.
(e) OBJECTIONS. An interested person who wishes to make an objection to
the proposed rate increase may request the city secretary to record the
objection during the public hearing or may submit the objection in writing
anytime before the decision resolution is adopted. In order for an objection to
be made part of the record, the objector must provide the city secretary with
the objector's name and address.
(f) DELAYED DETERMINATION. If the city council is unable to make a final
determination concerning a requested rate increase within the extended time
period, the cable operator may put the increase into effect, subject to
subsequent refund if the city council later issues a decision disapproving any
portion of the increase.
(g) PRICE CAP ANALYSIS. If a cable operator presents its request for a
rate increase as being in compliance with the FCC's price cap, the city council
shall review the rate using the
22
price cap analysis in accordance with the standard form authorized by the FCC.
Based on the city council's findings, the basic cable rates shall be established
as follows:
(1) If the proposed basic cable rate increase is within the price
cap established by the FCC, the proposed rates shall become the new basic cable
rates.
(2) If the proposed basic cable rate increase exceeds the price cap
established by the FCC, the city council shall disapprove the proposed rate
increase and order an increase that is in compliance with the price cap.
(h) COST-OF-SERVICE SHOWINGS. If a cable operator submits a
cost-of-service showing in an attempt to justify a rate increase above the price
cap, the city council will review the submission pursuant the FCC standards for
cost-of-service review. The city council may approve a rate increase above the
price cap if the cable operator make the necessary showing; however, a cost-
of-service determination resulting in a rate below the price cap or below the
cable operator's then current rate will prescribe the cable operator's new rate.
(i) DECISION. The city council's decision concerning the requested rate
increase, shall be adopted by formal resolution. If a rate increase proposed by
a cable operator is disapproved in whole or in part, or if objections were made
by other parties to the proposed rate increase, the resolution must state the
reasons for the decision. Objections may be made at the public hearing by a
person requesting the city secretary to record the objection or may be submitted
in writing at anytime before the decision resolution is adopted.
(j) REFUNDS. (1) The city council may order refunds of subscribers' rate
payments with interest if;
(A) the city council was unable to make a decision within the
extended time period as described in Paragraph (c) above; and
(B) the cable operator implemented the rate increase at the end
of the extended review period; and
(C) the city council determines that the rate increase as
submitted exceeds the applicable price cap or that the cable operator failed to
justify the rate increase by a cost-of-service showing, and the city council
disapproves any portion of the rate increase.
(2) The method for paying any refund and the interest rate will be
in accordance with FCC regulations as directed in the city council's decision
resolution.
(k) APPEAL. The city council's decision concerning rates for the basic
service tier or associated equipment, may be appealed to the FCC in accordance
with applicable federal regulations.
SECTION 4. CABLE OPERATOR INFORMATION
(a) CITY MAY REQUIRE. (1) In those cases when the cable operator has
submitted initial rates or proposed an increase the exceeds the reasonable rate
standard, the city council may require the cable operator to produce information
in addition to that submitted, including proprietary information, if needed to
make a rate determination. In these cases, a cable operator may request the
information be kept confidential in accordance with this section.
23
(2) In cases where initial or proposed rates comply with the
reasonable rate standard, the city council may request additional information
only in order to document that the cable operator's rates are in accord with the
standard.
(b) REQUEST FOR CONFIDENTIALITY. (1) A cable operator submitting
information to the city council may request in writing that the information not
be made routinely available for public inspection. A copy of the request shall
be attached to and cover all of the information and all copies of the
information to which it applies.
(2) If feasible, the information to which the request applies shall
be physically separated from any information to which the request does not
apply. If this is not feasible, the portion of the information to which the
request applies shall be identified.
(3) Each request shall contain a statement of the reasons for
withholding inspection and a statement of the facts upon which those reasons are
based.
(4) Casual requests which do not comply with the requirements of
this subsection, shall not be considered.
(c) CITY COUNCIL ACTION. Requests which comply with the requirements of
Subsection (b), will be acted upon by the city council. The city council will
grant the request if the cable operator presents by a preponderance of the
evidence, a case for nondisclosure consistent with applicable federal
regulations. If the request is granted, the ruling will be placed in a public
file in lieu of the information withheld from public inspection. If the request
does not present a case for nondisclosure and the city council denies the
request, the city council shall take one of the following actions:
(1) If the information has been submitted voluntarily without any
direction from the city, the cable operator may request that the city return the
information without considering it. Ordinarily, the city will comply with this
request. Only in the unusual instance that the public interest so requires, will
the information be made available for public inspection.
(2) If the information was required to be submitted by the city
council, the information will be made available for public inspection.
(d) APPEAL. If the city council denies the request for confidentiality,
the cable operator may seek review of that decision from the FCC within five
working days of the city council's decision, and the release of the information
will be stayed pending review.
SECTION 5. AUTOMATIC RATE ADJUSTMENTS
(a) ANNUAL INFLATION ADJUSTMENT. In accordance with FCC regulations, the
cable operator may adjust its capped base per channel rate for the basic service
tier annually by the final GNP-PI index.
(b) OTHER EXTERNAL COSTS. (1) The FCC regulations also allow the cable
operator to increase its rate for the basic service tier automatically to
reflect certain external cost factors to the extent that the increase in cost of
those factors exceeds the GNP-PI. These factors include retransmission consent
fees, programming costs, state and local taxes applicable to the provision of
cable television service, and costs of franchise requirements. The total cost of
an increase in a franchise fee may be automatically added to the base per
channel rate, without regard to its
24
relation to the GNP-PI.
(2) For all categories of external costs other than retransmission
consent and franchise fees, the starting date for measuring changes in external
costs for which the basic service per channel rate may be adjusted will be the
date on which the basic service tier becomes subject to regulation or February
28, 1994, whichever occurs first. The permitted per channel charge may not be
adjusted for costs of retransmission consent fees or changes in those fees
incurred before October 6, 1994.
(c) NOTIFICATION AND REVIEW. The cable operator shall notify the city at
least 30 days in advance of a rate increase based on automatic adjustment items.
The city shall review the increase to determine whether the item or items
qualify as automatic adjustments. If the city makes no objection within 30 days
of receiving notice of the increase, the increase may go into effect.
SECTION 6. ENFORCEMENT
(a) REFUNDS. The city may order the cable operator to refund to
subscribers a portion of previously paid rates under the following
circumstances:
(1) A portion of the previously paid rates have been determined to
be in excess of the permitted tier charge or above the actual cost of equipment;
or
(2) The cable operator has failed to comply with a valid rate order
issued by the city.
(b) FINES. If the cable operator fails to comply with a rate decision or
refund order, the cable operator shall be subject to a fine of $500 for each day
the cable operator fails to comply.
PASSED AND APPROVED on a second reading at a meeting of the City Council held on
this the 2nd day of November, 1993.
-------------------
Henry Moore, Mayor
ATTEST:
- ----------------------------
Frankie Lahr, City Secretary
25
ORDINANCE NO. 95-08-15__
AN ORDINANCE OF THE CITY OF HILLSBORO, TEXAS AMENDING ORDINANCE NO.
78-11, AS AMENDED BY ORDINANCE NO. 88-9, AS AMENDED BY ORDINANCE NO.
90-10, AS AMENDED BY ORDINANCE NO. 93-11-03, CONDITIONALLY CONSENTING
TO THE TRANSFER OF THE CABLE TELEVISION FRANCHISE GRANTED TO SLT CABLE
TV, INC.; AUTHORIZING THE MAYOR AND CITY SECRETARY TO ENTER INTO SUCH
AMENDMENT WITH ALLTEL AND NORTHLAND CABLE PROPERTIES FOUR LIMITED
PARTNERSHIP PURSUANT TO ORDINANCE NO. 78-11, 88-9, 90-10, AND
93-11-03; PROVIDING FOR A METHOD OF PUBLICATION; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING AN
EFFECTIVE DATE; AND FINDING AND DETERMINING THAT THE MEETING AT WHICH
THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City Council of the City of Hillsboro, Texas, granted a
franchise to build, construct, operate and maintain a cable television
communications system in the City of Hillsboro, Texas, to CABLE TV OF
HILLSBORO, INC., by Ordinance No. 78-11, on December 19, 1978; and
WHEREAS, the City Council of the City of Hillsboro, Texas, transferred
and assigned said franchise to HILLSBORO CABLE TV LIMITED PARTNERSHIP by
Ordinance No. 88-9, on September 20, 1988; and
WHEREAS, the City Council of the City of Hillsboro, Texas, transferred
and assigned said franchise to SLT CABLE TV, INC., by Ordinance No. 90-10, on
June 19, 1990; and
WHEREAS, on December 14, 1992, SLT CABLE TV, INC.'s parent corporation
SLT Communications, Inc. was acquired by ALLTEL CORPORATION; and
WHEREAS, on April 10, 1995, ALLTEL entered into an agreement to sell
its 18 cable systems (including Hillsboro) to NORTHLAND TELECOMMUNICATIONS
CORPORATION; and
WHEREAS, ALLTEL desires to transfer the Franchise and the System to
NORTHLAND CABLE PROPERTIES FOUR LIMITED PARTNERSHIP ("NORTHLAND") ("Transfer");
and
WHEREAS, the Franchise Documents require the City's prior written
consent to a transfer of the Franchise; and
WHEREAS, on June 14, 1995, the ALLTEL and NORTHLAND jointly submitted
to the City their application on Federal Communications Commission ("FCC") Form
394 ("Transfer Application") and Special Relief Petition and Request for
Waiver, requesting that the City acknowledge notice of and approve the
Transfer; and
WHEREAS the City has reviewed the Transfer Application for the
conditions that ALLTEL completes payment of the refunds stated in Resolution
No. 95-08-01 and that NORTHLAND executes within thirty (30) days from the date
of the passage of this ordinance a separate document which acknowledges
acceptance of the City of Hillsboro cable franchise as amended by Ordinances
Nos. 88-9, 90-10, 93-11-03, and this ordinance.
Section 4. Consent To Transfer Denied if Conditions Not Met. If the
Companies fail to satisfy any of the conditions in Section 1 hereof or previous
franchise ordinances, then the City's consent to the Transfer is DENIED,
pursuant to Ordinance Nos. 78- 11, 88-9, 90-10, and 93-11-03.
26
Section 5. Authorization to Enter Into Franchise Transfer. The Mayor
and City Secretary are hereby authorized and directed to execute all necessary
transfer documents in connection therewith on behalf of the City of Hillsboro
with ALLTEL and NORTHLAND.
Section 6. Limited Transfer Consent. This ordinance shall not be
construed to grant or imply the City's consent to any other future transfer of
the Franchise that may require the City's consent under any applicable federal,
state, or local law. The City reserves all of its rights with regard to any
such future transfers or transactions giving rise to such transfers.
Section 7. Publication. Publication shall be made on (1) time in
the official publication of the City of Hillsboro, Texas, after final passage,
which publication shall contain the caption stating in substance the purpose of
the ordinance.
Section 8. Severability Clause. If any provision, section,
sentence, clause or phrase of the Ordinance, or the application of same to any
person or set of circumstances, if for any reason is held to be
unconstitutional, void, or invalid (or for any reason unenforceable), the
validity of the remaining portion of this Ordinance or its application to other
persons or sets of circumstances shall not be affected thereby, it being the
intention of the City Council of the City of Hillsboro in adopting and of the
Mayor in approving this Ordinance, that no portion hereof or provision or
regulation contained herein shall become inoperative or fail by any reason of
any unconstitutionality or invalidity of any other portion, provision or
regulation. Provided, however, that in the event that the Federal
Communications Commission declares any section invalid, then such section or
sections shall be renegotiated by the City and the Grantee within 30 days of
such FCC decision. Refusal to renegotiate will be considered a violation of the
franchise and the City may invoke Section 14 of the franchise as stated in
Ordinance No. 78-11.
Section 9. Savings Clause. To the extent of any prior ordinance of
the city of Hillsboro (or any provision, clause, phrase, sentence or paragraph
contained therein) conflicts with this ordinance, said conflicting ordinance,
provision clause, phrase, sentence or paragraph is hereby repealed.
Section 10. Effective Date. That this ordinance shall take effect
immediately from and after its passage in accordance with the provisions of the
laws of the State of Texas and the Charter of the City of Hillsboro, Texas.
Section 11. Public Meeting. That it is hereby officially found and
determined that the meeting at which this ordinance is passed was open to the
public as required and that public notice of the time, place, and purpose of
said meeting was given as required by the Open Meetings Act. TEX. GOV'T CODE
ANN., Chapter 551 (Vernon 1995).
PASSED AND APPROVED in regular session of the City Council of the City
of Hillsboro, Texas, on the 15th day of August, 1995.
/s/ HENRY MOORE
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Henry Moore, Mayor
ATTEST:
/s/ FRANKIE LAHR
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Frankie Lahr, City Secretary