|
Part 25
25.000 COMMUNITY ANTENNA TELEVISION SYSTEMS Ord. No. 60 Adopted: August 14, 1984
An ordinance to provide for the issuance of non-exclusive
contracts for the establishment and operation of community
antenna television systems in the City of Reading, Michigan.
THE CITY OF READING HEREBY ORDAINS:
25.001 Definitions.
Sec. 1. For the purpose of this Ordinance the following
terms, phrases and words shall have the meanings given in this
section unless the context clearly indicates that a different
meaning is intended:
A. "Basic service" shall mean the provision by the company
to television receivers of all signals of over-the-air
television stations required by the Federal
Communications Commission (hereafter "FCC"), public
channels and additional channels at the option of the
company.
B. "City" is the City of Reading, Michigan.
C. "City Channel" shall mean a channel on the system which
is reserved for use by the City or for public access.
D. "City Council" is the Council of the City of Reading,
Michigan.
E. "Clerk" is the City Clerk of the City of Reading.
F. "Company channel" shall mean a channel on the system
which is reserved for the carriage of program material
originated by the company or by another person.
G. "Contractor" is a person to whom a contract has been
issued pursuant to the provisions of this chapter.
H. "Federal Communications Commission" or "FCC" is the
governing Federal agency of that name or any successor
agency created by the United States Congress.
I. "Gross subscriber revenues" includes any and all
compensation or receipts derived from installation,
disconnection and reinstallation and recurring monthly
service charges arising from the sale of regular
monthly service to a subscriber.
J. "Person" is any person, firm, partnership, association,
corporation, company or organization of any kind.
K. "Regular subscriber services" includes the carriage of
broadcast signals and FCC mandated non-broadcast
services, but shall not include auxiliary services,
which include but are not limited to advertising, lease
channels and pay cable.
L. "Subscriber" shall mean a purchaser of any service
delivered over the system to an individual dwelling
unit where the service is not to be utilized in
connection with a business, trade, or profession.
25.002 Contract--Application.
Sec. 2. Any person who demonstrates to the City Council that
he has available for his use, facilities, equipment and authority
to develop a cable system to transmit television and radio
programs from an input point, to a determined point on the
premises of CATV subscribers, may file an application with the
City Clerk for contract to operate the CATV system within the
City. The application shall include such information as is set
forth in this Ordinance, as well as such additional information
as the City Council shall, from time to time request.
25.003 Contract--Issuance.
Sec. 3. Upon the receipt by the Clerk of an application
signed by the applicant, complying with all of the requirements
of this Ordinance, the Clerk shall forward the materials to the
City Council for study. Should the Council, in its sole
discretion, deem the application to be in the best interests of
the City, it should direct the Clerk to issue to the applicant a
non-exclusive contract to operate a community antenna television-radio system within the City for a period of fifteen (15) years
from the date of issuance of such contract. The Contractor shall
proceed as soon as practicable, after receipt of such contract,
with the necessary work to enter into an agreement with the
necessary public utilities and to provide the system called for
in their contract.
25.004 Service area and extension.
Sec. 4. Each applicant shall, in his application, agree to
serve the entire area encompassed by the corporate limits of the
City as they exist during the term of their contract.
25.005 Stations designated.
Sec. 5. Each applicant shall with his application, designate
all the broadcasting stations which will be carried by the
system. Initial channel capacity of the applicant's system shall
be no less than thirty-five (35) channels.
25.006 Financial responsibility.
Sec. 6. Each applicant shall attach to his application a
copy of his Profit and Loss Statement and Balance Sheet covering
the operation of any other CATV system of which such applicant is
the owner, or in which such applicant is a stockholder for the
last preceding fiscal year in the State, and shall, in addition,
submit such financial statements and net worth statements as
shall reasonably indicate financial responsibility of the
applicant and his ability to provide the service required by the
contract provided for in this Ordinance.
25.007 Indemnification, maintaining insurance and furnishing
bond.
Sec. 7. Each applicant shall, in his application, agree as
follows:
A. To indemnify the City for any and all liability arising
out of the installation, operation or maintenance of
the cable antenna television system.
B. To indemnify the City against all expenses incurred by
the City in defending itself in event that any claims
are made against the City or litigation results
therefrom.
C. To maintain throughout the term of its contract,
liability insurance insuring the City and the Company
with regard to all damages for which the City and/or
the Company may be liable, including, but not limited
to, damages arising from the installation, operation,
maintenance or removal of the Company's CATV system,
whether or not any act or omission complained of is
authorized, allowed or prohibited by the contract
provided for herein. The liability insurance referred
to in this section shall be in the following amounts:
1. Five Hundred Thousand ($500,000) Dollars for
bodily injury or death to any one person, with a
limit of One Million ($1,000,000) Dollars for
bodily injury or death resulting from any one
accident;
2. Five Hundred Thousand ($500,000) Dollars for
property damage resulting from any one accident;
3. Five Hundred Thousand ($500,000) Dollars for all
other types of liability.
D. To furnish the City a bond for the faithful performance
of its obligations under such contract, if awarded
under this Ordinance in an amount to be set by the City
Council.
25.008 Rates payable to City.
Sec. 8. The applicant shall, in his application, agree to
pay to the City annually commencing one (1) year from the
effective date of the contract issued hereunder and each year
thereafter, three (3%) per cent of his gross subscriber revenue
derived from all cable services within the City, or Two Hundred
Fifty ($250.00) Dollars, whichever is greater. In the event that
the rules of the Federal Communications Commission presently
governing such rates should be changed, the applicant shall agree
to be bound by such alternative basis for assessing such rates as
shall be specified in this Ordinance.
25.009 Subscriber rates.
Sec. 9.
A. The rates and charges for television and radio signals
distributed shall be as follows:
1. Basic cable (minimum of twelve channels of
programming): $ 9.95 per month
2. Expanded basic cable (six additional channels of
programming): 3.95 per month
3. Fees for second and third television sets
connected to cable: 3.50 per month per set
4. Connection fee:
a. First television set connection: 28.50
b. Second television set connection: 15.00
5. Converter deposit: 15.00 deposit by subscriber for each converter utilized, re- funded to sub- scriber if ser- vice is discon- tinued and converter returned in good condition.
B. No increase in rates charged for installation of
equipment and "Basic service" as specified in the
preceding paragraphs shall be made effective except as
authorized by the City Council within ninety (90) days
after notice of such increase by Contractor, and after
a full, open and public proceeding upon prior notice
and opportunity of all interested parties to be heard;
except, that in the event the City Council fails to
approve or disapprove the rate increase within the
ninety (90) day period, such increase shall be deemed
approved and shall be effective at the end of the
ninety-day period;
C. Where an unusually difficult or abnormal installation
is encountered or requested, the Contractor may reserve
the right to require additional charges to reasonably
recover the Company's costs. Such charges may, at the
subscriber's request, be added to the subscriber's
monthly charges over a negotiable period of time.
D. Rates for services other than installation of equipment
and regular subscriber services shall be established by
the Contractor pursuant to the rules of the Federal
Communications Commission.
E. If, in the future, the State of Michigan regulates the
rates of the Company for the services provided under a
contract issued hereunder, those portions of this
Ordinance so regulated by the State of Michigan shall
be of no effect during such State regulation to the
extent of any conflict therewith.
(Amended: Ord. No. 60A, 5-26-85)
25.010 Contractor's rules and regulations.
Sec. 10. The Contractor shall file with the Clerk copies of
all rules, regulations, terms and conditions adopted by the
Contractor for the conduct of its business, and shall likewise
file with the Clerk any amendments or alterations therein as
made.
25.011 Contractor's office for consumer complaints.
Sec. 11.
A. The Contractor shall maintain a regional office in the
area which shall be open during the usual business
hours, have a listed toll-free telephone number and be
so operated that complaints and requests for repairs or
adjustments may be received at any time, twenty-four
(24) hours per day.
B. The Contractor shall render efficient service, make
repairs promptly and interrupt service only for good
cause and for the shortest time possible. Such
interruptions, insofar as is possible, shall be
preceded by notice, and shall occur during period of
minimum use of the system.
C. The Contractor shall limit failures to a minimum by
locating and correcting malfunctions promptly, but in
no event longer than twenty-four hours after receiving
notice of same, except as provided herein.
D. Should it be impossible or impractical to correct any
malfunction within twenty-four hours or less, then each
subscriber whose television reception is so disrupted
shall receive a rebate from the Contractor in the
amount of 1/30th of such subscriber's monthly charge
for every additional twenty-four hour period that said
subscriber's television reception is so disrupted,
unless that disruption in service was entirely beyond
Contractor's control.
E. Any rebate made to any subscriber under this section,
in any month, shall not exceed said subscriber's normal
monthly fee paid to the Contractor.
F. Complaint procedures shall be given to each new
subscriber at the time of initial subscription to the
CATV system. In the instance of existing subscribers,
changes in complaint procedure shall be included with
the next monthly billing. Further, Contractor shall, in
writing, advise the City Clerk of the procedures and
personnel which shall be available for the handling of
consumer complaints. The City Clerk, or such other
person as the City Council designates, shall be
accorded an opportunity to review all consumer
complaints and methods in which the same have been
handled by the Contractor.
(Amended: Ord. No. 60A, 5-26-85)
25.012 Financial statements and records.
Sec. 12. The Contractor, unless otherwise required
hereunder, shall file with the Clerk, annually, an unaudited
statement of revenues received from the operation of CATV within
the City within ninety (90) days after the close of its fiscal
year; the City Council may, however, require an audited statement
of revenues received from the operation of CATV within the City
for any fiscal year, the same to be provided within ninety (90)
days after the close of the fiscal year for which an audited
statement is required or within one hundred twenty (120) days
after such requirement is imposed, whichever is longer. The
Contractor shall make his financial records pertaining thereto
available to the City for inspection, at a place designated
within the State at any reasonable time, maintaining separate
records as to his business conducted pursuant to this contract.
On demand, the Contractor shall also file with the City copies of
all FCC filings and reports.
25.013 Transmission lines and facilities.
Sec. 13. All transmission lines and facilities will be in
accordance with the rules and regulations set forth by the local
public utilities and shall be as per contract with said local
public utilities.
25.014 Emergency use of facilities.
Sec. 14. In the event of emergency or disaster, the
Contractor shall, upon request of the Mayor or his designate,
make available its facilities to the City for use during such
emergency or disaster.
25.015 Local origination channels--Availability.
Sec. 15.
A. Contractor shall make available such local origination
channels as are required by the rules of the FCC which
shall be maintained by the Contractor on a non-discriminatory basis and shall further provide a
character generator to provide public service
announcements and announcements provided by local units
of government including the local school system. Local
non-profit organizations, local units of government and
local educational institutions desiring to use this
channel shall notify the City Clerk and the City Clerk
shall notify the Contractor at least forty-eight (48)
hours in advance of when this channel shall be in use.
B. The Contractor shall be permitted to use the channel
capacity referred to in the preceding subsection when
the channel capacity is not being used for the purposes
designated in said subsection.
(Amended: Ord. No. 60A, 5-26-85)
25.016 Service to public buildings.
Sec. 16. The Contractor shall provide "Basic service" to one
outlet on each floor of all existing or future police and fire
stations, the City Hall, library, and all public and private
schools located within three hundred (300) feet of the
Contractor's cables within the City without any charge therefor.
25.017 Sale or transfer of system.
Sec. 17. No Contractor shall sell or otherwise transfer his
CATV system to another without reporting such sale to the Clerk,
and obtaining the approval of the City Council of such transfer.
Such approval shall not be unreasonably withheld, but the
proposed transferee may be required to submit such financial
information as shall establish his ability to maintain and
operate the system in accordance with the provisions hereof. For
purposes of this section, the transfer of thirty per cent or more
of the corporate stock of any Contractor shall be deemed to be a
transfer hereunder.
25.018 Limitation of services.
Sec. 18. The Contractor shall not be engaged directly or
indirectly in the business of repairing, servicing, or selling
television and radio servicing equipment.
25.019 Contract--Renewal.
Sec. 19. At such time that a contract given pursuant to this
Ordinance expires of its own terms, any request for a renewal
thereof shall be considered pursuant to the provisions of the
cable communications policy of 1984.
(Amended: Ord. No. 62, 4-8-86)
25.020 Surrender of franchise--Notice.
Sec. 20. Contractor may surrender his franchise at any time
upon filing with the Clerk written notice of his intention to do
so at least six months before the surrender date. On the
surrender date as specified in the notice, the City shall have
the option of either requiring the Contractor to remove its
property from the City or to purchase the system in accordance
with Section 19.
25.021 Necessity for contract.
Sec. 21. No person shall own or operate a community antenna
television and/or radio system in the City except by contract
issued pursuant to this chapter.
25.022 FCC rules and regulations.
Sec. 22. This chapter 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. Should there be any modification of the provisions of
Section 76.31 of the Rules and Regulations of the Federal
Communications Commission which must be incorporated into the
Ordinance codified in this chapter, the City and the Contractor
agree that such incorporation shall be accomplished within one
year after the effective date of the FCC's adoption of the
modification, or upon renewal of a contract, whichever occurs
first. However, the right is reserved to the City to adopt, in
addition to the provisions contained in this chapter and existing
applicable ordinances, such additional ordinances as it shall
find necessary in the exercise of police power; provided, that
such regulations shall be reasonable and not in conflict with the
laws of the State, the laws of the United States of America, or
the rules of the Federal Communications Commission.
25.023 Violation--Penalty.
Sec. 23. If a Contractor violates any of the terms,
conditions, or provisions of this chapter or a contract granted
pursuant to the provisions of the Ordinance codified in this
chapter, or if a Contractor should fail to comply with the
reasonable provisions of any ordinance of the City, or contract
with a City Board regulating the use of the Contractor of the
streets, alleyways, easements and public ways of the City, and
should the Contractor continue to violate the same for a period
of five (5) days after the Contractor shall have been notified in
writing by the City to desist from such violation so specified,
then the Contractor shall be deemed to have forfeited and
annulled, and shall forfeit and annul, all the rights and
privileges granted by any contract issued under the terms of this
chapter, and in addition thereto, the Contractor shall be
considered in violation of the ordinances of the City and given a
misdemeanor subject to a fine not to exceed Five Hundred ($500)
Dollars. Each day a violation continues after the notice provided
in this section shall be considered a separate violation.
25.024 Severability.
Sec. 24. If any section, subsection, sentence, clause,
phrase or portion of this Ordinance is for any reason held
invalid or unconstitutional, by any Court of competent
jurisdiction, such portion shall be deemed a separate, distinct
and independent provision and such holding shall not affect the
validity of the remaining portions hereof.
Effective date. The effective date of this Oordinance shall
be August 31, 1984 following publication.
|