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501~. ORDINANCE N0. 50l AN ORDINANCE GRANTING A FRANCHISE TO ARK-CABLE, INC., OF WEST MEMPHIS, ARKANSAS TO OPERATE AND MAINTAIN A COMMUNITY ANTENNA SYSTEM IN THE CITY; SETTING FORTH CONDITIONS; PROVIDING FOR CITY REGULATION OF ITS OPERATION, RATES, PAYMENTS, SERVICE, CONSTRUCTION, AND MAINTENANCE; CONTAINING CERTAIN PROHIBITIONS; PRESCRIBING CERTAIN PENALTIES; PRO- VIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF WEST MEMPHIS, ARKANSAS: Section 1. SHORT TITLE. This ordinance shall be known: and may be cited as the "West Memphis Community Antenna Television Fran- chise Ordinance". Section 2, DEFINITIONS. For the purposes of this Ordinance, the following terms, phrases, words and derivations shall have the mean- ing given herein. The word ssshallss is always mandatory and t~tot merely directory. (a) "City" is the City of West Memphis, Arkansas. (b) "Company" is Ar k-Cable, Inc., an Arkansas corporatio n maintaining its offices in West Memphis, Arkansas, the grantee of rights under this Franchise Ordinance. (c) "Systems' shall mean the lines, fixtures, equipment, attach- meets, and all appurtenances thereto which are used in the construction, operation, and maintenance of the community antenna tele~asion system herein authorized. Section 3. GRANT OF AUTHORITY. There is hereby granted by the City to the Company, subject to any restrictions and requirements of the West Memphis Utility Commission, the right and privilege to construct, erect, operate, maintain in, upon, along, across, above, over and under the streets, alleys, public ways, now laid out or dedicated and all ' extensions thereof and additions thereto in the City poles, cables, underground conduits, conductors and fixtures necessary for the main- tenance and operation in the City of a community antenna system for the reception and distribution of television signals and energy. The rights herein granted shall extend to any area annexed to the City and the Company shall be bound by the same rules and regulations as to such area as are otherwise herein or hereafter provided. The right to use and occupy said streets, alleys, public ways and places for the purposes therein set forth, shall not be exclusive, and the City reserves the right to grant the use of streets, alleys, public ways and places to any person at any time during the period of this Franchise Ordinance, The Company shall have the right to enter into arrangements for the attachment onto and the use of poles and facilities operated by the West Memphis Utility Commission operating within the City, whereby the Company shall strictly comply with the terms, provisions and restrictions of said agreement with the West Memphis Utility Commission. Section 4. COMPLIANCE WITH LAWS, REGULATIONSAND ORDINANCES. The Company shall, at all times during the life of this Franchise Ordinance, be subject to all lawful exercise of the police power by the City and to such reasonable regulation as the City shall hereafter by Resolution or Ordinance provide. The construction, operation, and maintenance of the system by the Company shall be in full compliance with all Electrical and Safety codes in effect and as same may be amended and revised, and in full compliance with all other applicable rules and regulations now in effect or hereinafter adopted by the Federal Communications Commission, the City, the State of Arkansas, and the United States, Section 5. COMPANY LIABILITY AND INDEMNIFIGATION. (a) Liability Coverage. It is expressly understood and agreed by and between the Company and the City that the Company shall save the City harmless from all loss sustained by the City on accountcf any suit, judgment, execution, claim or demand whatsoever arising out of the construction, operation and maintenance of the system by the Company. -2- The Company agrees to maintain and keep in full force and effect at all times during the term of this Franchise Ordinance sufficient liability insurance coverage to protect the City against any such F claims, suits, judgments, executions or demands in a sum not less than $100,000.00 per person in any one claim, $300,000,00 as to any one accident or occurrence, and not less than $100,000.00 for property damage as to any one accident or occurrence, or in such larger sums on all coverage as may be required of the Company by any change in law. (b) Workments Compensation Coverage. The Company shall also maintain in full force and effect throughout the duration of this Franchise Ordinance sufficient workmen's compensation insurance cover- age to adequately and fully protect its agents and employees as re- quired by law. (c) Resident Company and Agent. A11 insurance policies re- quired of the Company shall be written by a Company or companies authorized and qualified to do business in the State of Arkansas. Certificates of all coverage required shall be promptly filed by the Company with the City. Section 6, SERVICE STANDARDS. The Company shall maintain and operate its system and render efficient service in accordance with the rules and regulations as are, or m~,y be, set forth by the City of West Memphis or by other regulatory agencies of this type of enterprise. (a) Whenever it is necessary to shut off or interrupt service for the purpose of making repairs, adjustments or installations, the Company shall do so at such times as will cause the least amount of inconvenience to its customers, and unless such interruption is un- foreseen and immediately necessary, it shall give reasonable notice thereof to its customers. (b) The Company will guarantee that the customer shall re- ceive nine (9) channels, or as many thereof as will be permitted by the Federal Communications Commission, -3- Section 7. COMPANY RULES. The Company shall have the authority to promulgate such rules, regulations, terms and condi- tions governing the conduct of its business as shall be reasonably necessary to enable the Company to exercise its rights and perform its obligations under this Franchise, and to assure an uninterrupted service to each and all of its customers, Provided, however, that such rules, regulations, terms and conditions shall not be in con- flict with the provisions hereof or the laws of the State of Arkansas and shall be subject to the approval of the City. Section 8. CONDITIONS ON STREET OCCUPANCY. (a) Use. A11 transmission and distribution structures, lines and equipment erected by the Company within the City shall be so lo- cated as to cause minimum interference with proper use of streets, alleys and other public ways and places, and to cause minimum inter- ference with the rights or reasonable convenience of property owners who adjoin any of the said streets, alleys or other public ways and places, (b) Relocation. In event that at any time during the period of this Franchise, the City shall lawfully elect to alter, change, relay, and relocate its poles, wires, cables or other fixtures, Company, upon reasonable notice by the City, shall remove and relocate its cables and fixtures at its own expense, (c) Temporary Removal of Wires For Building Moving. The Company shall, on the request of the City, temporarily raise or lower its wires to permit the moving of buildings pursuant to properly issued permits. (d) Permits, Easements and Agreements, The City shall not be required to assume any responsibility for the securing of any rights- of-way or easements, nor shall the City be responsible for securing any permits or agreements with other persons. Section 9. CONSTRUCTION APPROVAL BY UTILITY COMMISSION- CORRECTION OF DEFECTS. Except for individual service drops, the -4- Company shall not run any line, make any attachment, nor shall any construction of any kind be commenced without the prior approval of the West Memphis Utility Commission. The City and the Utility Com- mission shall have and maintain the right to inspect the construction, operation anal maintenance of the system by the Company to insure the proper performance of the terms of this Franchise Ordinance. In the event the Company should violate any of the terms of this Franchise Ordinance or any of the rules and regulations as may be from time to time lawfully adopted, the City shall immediately give to the Company thirty (30) days written notice to correct same, and in the event the Company does not make such correction within thirty (30) days from the receipt of such written notice, the City may cancel this Franchise Ordinance or make such correction itself and charge the cost of same to the Company. Section 10. CONTROL OF RATES. Rates charged by the Company shall be submitted to the City fnr approval, The Company agrees that it shall be subject to all authority now or hereafter possessed by the City, or any other regulatory body having competent jurisdiction, to fix just, reasonable an,d compensatory television signal distribution rates. When this Franchise takes effect the Company shall have the authority to charge and collect not to exceed the submitted and ap- proved schedule of rates, which shall remain in effect until changed or modified with approval of the City. The rates to be charged by Company shall be in an amount not to exceed $10,00 for each installation to customer and the monthly rates to customer shall not exceed $5.00 for a single unit. In the event of a multiple installation, the charge shall not exceed $,50 per unit, plus the regular $5.00 charge, Section 11. PAYMENT TO CITY IN LIEU OF PRIVILEGE LICENSE OR TAX. (a) The Company shall pay to the City a tax or fee, in lieu of privilege licenses, five (5%) per cent of the gross revenues re- ceived by the Company from the operation of the system, or $500.00, -5- I, whichever is greater,for the first five (5) years of the franchise and seven and one-half (72%) per cent of the gross revenues received by the Company thereafter, or $750.00 whichever is greater. All other taxes assessed against Company by law shall remain in full force and effect. (b) All payments as required by the Company to the City shall be made annually based on gross revenues of the Company. Section 12. RECORDS AND REPORTS. The City shall have access, at reasonable hours, to all records relating to the financial status of the Company, An annual summary report showing gross revenues received by the Company from the operation of the system and such other information as~the City may require in support of same, shall be given to the City by the Company, Section 13, TRANSFER OF SYSTEM. The Company shall not sell or transfer its plant or system or any portion thereof, nor any right, title or interest in the same, nor shall the Company transfer any rights under this Franchise Ordinance to any person, firm, or corpora- tion without prior approval by City, Section 14, TERMINATION FOR FAILURE TO CONSTRUCT. Unless Company, without just cause, constructs receiving tower within one (1) year from effective date of this Franchise Ordinance, City shall have the right to revoke any rights hereunder, unless sufficient evi- dence be shown to grant extension of time, Section 15. DURATION OF FRANCHISE. ORDINANCE. This Franchise Ordinance shall remain in full force and effect for a period of ten (10) years and shall be subject to renewal by the City by negotiation with the Company for additional five (5) year periods not to exceed twenty (20) years, including the initial ten (10) year period. Section 16, PENALTIES. Should the Company, its successors or assigns, violate any of the provisions of this Franchise, any reasonable rules and regulations or other laws, Company shall forfeit all its rights hereunder to the City after written notice to the Company and the continuation of such violation, failure or default for -6- .•~ , , ., ,`, a period of more than thirty (30) days. In the event of the bank- ruptcy o,r recievership of the Company, all rights herein given to the Company shall at the option of the City, be forfeited and terminated. Section 17. SEPARABILITY. In the event any section or part of this Franchise Ordinance shall be held invalid, such invalidity shall not effect the remaining portions of this Franchise Ordinance, Section 18. A11 ordinances or parts of ordinances in conflict herewith are to the extent of such conflict hereby repealed. Adopted this 16th day of June , 1966. _~J ~~~ C~ ~ Mayor ATTEST: ._-- r .~, - ~~ <~ ~~ ~~~ City Clerk ,'