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1956 ORDINANCE NO. 1956 AN ORDINANCE AMENDING AND SUPERCEDING ORDINANCE NOS. 998, 1328, AND 1510 GRANTING TO AMERICAN TELEVISION & COMMUNICATIONS CORPORATION, DOING BUSINESS AS CABLEVISION OF CENTRAL FLORIDA, A NON-EXCLUSIVE FRANCHISE TO INSTALL, MAINTAIN AND OPERATE A CABLE SYSTEM FOR THE DISTRIBUTION OF TELEVISION SIGNALS, FREQUENCY MODULATED RADIO SIGNALS AND CABLE/FIBER OPTIC RELATED SERVICES; CLOSED CIRCUIT TELEVISION PROGRAMS FOR A SPECIFIC TERM; SETTING FORTH FINDINGS ON MINIMUM STANDARDS FOR THE AWARD OF THE FRANCHISE; PROVIDING FOR CITY REGULATION OF ITS OPERATION, PAYMENTS, SERVICE, CONSTRUCTION, MAINTENANCE, PROHIBITIONS, PENALTIES; AND EFFECTIVE DATE. BE IT ORDAINED BY THE PEOPLE OF THE CITY OF SANFORD, FLORIDA: Section 1. SHORT TITLE This Ordinance shall be known and may be cited as the Sanford Community Antenna Television Franchise Ordinance and shall amend and supercede Ordinance Nos. 998, 1328, and 1510 of the City of Sanford, Florida. Section 2. FINDINGS OF MINIMUM STANDARDS In awarding this franchise the City Commission has considered and made findings regarding relevant procedural and substantive items, including but not limited to the following: 1. Indentifying the future cable-related community needs and interest and finding the franchisee will meet same; and 2. Reviewing the performance of the cable operator under the franchise during the current franchise term and finding the franchisee has performed satisfactorily; and 3. Considering the economic impact upon private property within the franchise area and finding the impact of awarding the franchise will be positive; and 4. Considering the public need for such franchise, if any; and finding the same exists and will be met by awarding this franchise to the applicant; and 5. Considering the capacity of the Cities public rights- of-way to accommodate the cable system; and finding said capacity exists for the award of this franchise; and 60 Considering the present and future use of the Cities public rights-of-way to be used by the cable system and finding said use will not be detrimentally harmed by an award of this franchise; and 7. Considering the potential disruption to existing users of the public rights-of-way to be used by the cable system and the resultant inconvenience which may occur to the public; and finding said will not exist; and 8. Considering the financial ability of the franchise applicant to perform; and finding same exists; and 9. Reviewing other societal interests as are generally considered in cable television franchising and finding same will be positively served by an award of this franchise. Section 3. DEFINITIONS For the purpose of this Ordinance, the following terms, phrases, words, and derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. (a) "City" is the City of Sanford, Florida. (b) "Grantee" is American Television & Communications Corporation doing business as CableVision of Central Florida authorized to do business in the State of Florida and maintaining an office in Sanford, Florida. (c) "Commission" is the City Commission of Sanford, Florida. (d) "Person" is any person, firm, partnership, association, corporation, company, or organization of any kind. (e) "System" shall mean the lines, fixtures, equipment, attachments, and all appurtenances thereto which are used in the construction, operation, and maintenance of the community antenna television system frequency modulated radio signals and cable/fiber optic related services. 3 Section 4. GRANT OF AUTHORITY - NON EXCLUSIVE (a) The City grants to the Grantee, the right and privilege to install, maintain and operate within the rights- of-way, except as hereinafter limited, of all public streets, parkways, alleys and utility easement strips within the City, herein for convenience called "streets", its cables and other conductors, with the necessary appurtenances, herein called Grantee's "system", for distribution of television and communication signals, frequency modulated radio signals, fiber optic services, and television programs to Grantee's subscribers. The rights herein granted shall extend to any area annexed to the City of Sanford. The right to use and occupy said streets, alleys, public ways and places for the purposes herein 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 City agrees that in awarding any additional rights to use the City's streets, alleys, public ways and places to any other communication or cable company, it may require said persons to warrant there will be no danger to grantees system. (b) If an application is filed for operation of more than one cable system within the City of Sanford, the City may employ consultants who are knowledgeable in the cable television industry to assist the City in analyzing the application, in analyzing, considering and making the issues and findings contained in Section 2 herein, and in making recommendations to the City Commission regarding the relief requested in the application. The Applicant for the additional franchise shall promptly pay the reasonable cost for such consulting services prior to the processing of the application by the City. Section 5. COMPLIANCE WITH LAWS, REGULATIONS AND ORDINANCES The Grantee 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 Grantee shall be in full compliance with the National Electric Safety Code as from time to time amended and revised, and in full compliance with all other applicable rules and regulations now in effect or hereinafter adoptedby the Federal Communications Commission, the City, the State of Florida, and the United States Government. Section 6. LIABILITY AND INDEMNIFICATION (a) It is expressly understood and agreed upon, by and between Grantee and City, the Grantee shall save City harmless from all losses sustained by City on account of any suit, judgement, execution, claim or demand whatsoever arising out of the construction, operation, maintenance, or removal of the system or any portion thereof by Grantee. (b) Grantee shall maintain, and by its acceptance of this franchise specifically agree that it will maintain throughout the term of this franchise liability insurance insuring the City and Grantee with regard to all damages mentioned in subparagraph (a) above in the minimum amounts of: 1. $500,000.00 for bodily injury or death to any one person, within the limit, however, of $1,000,000.00 for bodily injury or death resulting from any one accident; and 2. $250,000.00 for property damage resulting for any one accident. (c) A certificate of insurance evidencing the insurance policy obtained by Grantee in compliance with this section shall be filed with and approved by the City Commission, and a certificate of such insurance policy shall be filed and maintained with the City Clerk during the term of this franchise. (d) The Grantee shall also maintain in full force and effect throughout the duration of this Franchise Ordinance sufficient workmen's compensation insurance coverage to adequately and fully protect employees as required by law. .,-~ ~-~ 5 (e) The Grantee shall post a performance bond running to the City with good and sufficient surety in the amount of five- million dollars conditioned upon the faithful performance and discharge of the obligations imposed by the Franchise awarded hereunder from the date thereof including, but not limited to, faithful compliance with the construction timetable proposedby the Grantee in its bid as incorporated into the franchise, unless appropriate extension is approved by the City upon authorization of the City Commission. The City's right to recover under the bond shall be in addition to any other rights retained by the City under this ordinance and other applicable law, any proceeds recovered under the bond may be used to reimburse the City for loss of expected payments of the franchise fee and other valuable consideration given for the grant of the franchise, and such additional expenses as may be incurredby the city as a result of Grantee's failure to comply with the obligations imposed by the franchise including, but not limited to, attorney's fees and costs of any action or proceeding, the cost of refranchising with another entity, and the cost of removal or abandonment of any property, or other costs which may be in default. Bond will be returned at such time as the system has been completed and approved by the City provided that the Grantee has met or exceeded the construction required herein and has in good faith complied with the terms and conditions of the ordinance as well as the rules and regulations herein required and permitted. Said bond shall not be required for this franchise to be awarded to the existing franchise holder since the City acknowledges it has previously released its bond from this franchisee because of franchisee's record of satisfactory performance. The bond and all insurance policies called for herein shall be in a form satisfactory to the City Attorney and shall require thirty (30) days written notice of any cancellation to both the City and the Grantee. The Grantee shall, in the event of any such cancellation notice, obtain, pay all premiums for, and file with the City, written evidence of the issuance of 6 replacement bond or policies within thirty (30) days following receipt by the City or the Grantee of any notice of cancellation. (f) All insurance policies and bonds as are required of the Grantee in this Franchise Ordinance shall be written by a company or companies authorized and qualified to do business in the State of Florida. Certificates of all coverage required shall be promptly filed by the Grantee with the City. (g) The insurance policy and bond obtained by the Grantee in compliance with this section shall herewith be filed with and approvedby the City Attorney and such insurance policy and bond, along with written evidence of payment of required premiums, shall be filed and maintained with the City Clerk during the term of this franchise. Section 7. CONSTRUCTION GUARANTEE The franchisee shall commence installation, construction and performance of its obligations hereunder within three (3) months of the date of issuance of the franchise. Within four (4) years from the date of issuance of this franchise, the franchisee shall accomplish contiguous construction of a minimum of 90% of the proposed CATV system within said service area where the density is twenty (20) homes per cable mile. Said construction shall be accomplished at the rate of 25% of the franchise area per year each successive year from the date of issuance of the franchise. Failure to accomplish said construction of the proposed CATV system within said service area within specified period from the date of issuance of the franchise shall be cause for forfeiture of the performance bond and may result in cancellation of said franchise by the City Commission as provided in this ordinance. Said action shall be taken only after a public hearing is established by the Commission for the purpose of allowing the franchisee to show cause why such action should not be taken. 7 Section 8. CONDITIONS ON STREET OCCUPANCY AND SYSTEM CONSTRUCTION. (a) USE. 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 proper use of streets, alleys, and other public ways and places and to cause minimum interference with the right or reasonable convenience of property owners who adjoin any of said streets, alleys, or other public way and places. (b) RESTORATION. In case of any disturbance by Grantee of pavement, sidewalks, driveways, or other surfacing, the Grantee shall, at its own expense and in a reasonable manner approved by the City, replace and restore such places so disturbed in as good condition as before said work was commenced, and shall maintain the restoration in a reasonable condition approved by the City for the full period of one year and if the Grantee fails to do so the City may undertake restoration at the expense of said Grantee. (c) RELOCATION. The Grantee shall promptly and at its own expense relocate or modify any part of its system which the City may reasonably request to accommodate improvements to such streets, to accommodate City sewer, water, electric, communications or other facilities occupying any part of the public streets as may be required by the City, or other public authority having jurisdiction. (d) PLACEMENT OF FIXTURES. The Grantee shall not place any fixtures or equipment where the same will interfere with any gas, electric, telephone, or sewer and water lines, fixtures, and equipment, and the locationby the Grantee of its lines and equipment shall be in such manner as to not interfere with the usual travel on said streets, alleys, and public ways and the use of the same by gas, electric, telephone, and water and sewer lines and equipment. (e) TEMPORARY REMOVAL OF WIRES FOR BUILDING MOVING. Grantee shall, on the request of any person holding a building moving permit issued by City, temporarily raise or lower its 8 wires to permit the moving of buildings or structures. The expense of such .temporary removal or raising or lowering of wires shall be paid to Grantee by the person requesting same, and payment shall be paid in advance of Grantee raising or lowering their wires. The Grantee shall be given not less than five (5) business days advance notice to arrange for such temporary wire changes. (f) NO PROPERTY RIGHT. Nothing in this Franchise Ordinance shall grant to the Grantee any right of property in City-owned property, nor shall the City be compelled to maintain any of its property any longer than, or in any fashion other than in the City's judgement its own business or needs may require. (g) NON-LIABILITY OF CITY. The City shall not be liable for any damage occurring to the property of the Grantee caused by employees of the City in the performance of their duties, nor shall the city be held liable for the interruption of service by actions of City employees in the performance of their duties, nor shall the City be held liable for the failure of the Grantee to be able to perform normal services due to acts of God. (h) PERMITS, EASEMENTS, AND AGREEMENTS. The City shall not be required to assume any responsibility for the securing of any rights-or-way or easements, nor shall the City be responsible for securing any permits or agreements with other persons or utilities. (i) UTILITY AGREEMENTS. Prior to construction hereunder franchisee shall have appropriate pole attachment agreements with all applicable telephone and electric utilities. Upon request City shall have the right to review and inspect the agreements. Section 9. CITY INSPECTION, CORRECTION OF DEFECTS AND CONSTRUCTION PROHIBITION. (a) The City shall have and maintain the right to inspect the construction, operation, and maintenance of the system by the Grantee to insure the proper performance of the terms of 9 this Franchise Ordinance. In the event the Grantee 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 Grantee thirty (30) days written notice to correct such violation, and in the event the Grantee does not make such correction within thirty (30) days from the receipt of such written notice, the City may make such correction itself and charge the cost of same to the Grantee. (b) No person, firm, company, corporation, or association shall construct, install, maintain, or operate a cable television system within the City on any public property of the City, unless a franchise has first been obtained and unless such franchise is in full force and effect. Such franchise shall not take the place of any other license or permit which may be legally required of the Grantee in order to conduct such a business. Any person violating this section shall be liable for a fine not to exceed $25,000.00 per violation or any other penalty provided by law. Section 10. MINIMUM STANDARD CHANNELS REQUIRED. Grantee shall make available and be capable of initially transmitting at least thirty-six (36) channels for delivery to Subscribers upon commencement of operation. During the term of its Franchise, Grantee shall continuously carry the signals of all local broadcast stations now or hereafter required by the FCC to serve the City (except low power television stations as defined in FCC Rules, which may be carried at Grantee's option). Nothing referred to in this section shall be construed to require a Grantee to carry, at no charge, a signal for a television station which receives renumeration from or on behalf of the recipient of the signal (including signals now known as "Teletext" or "Extravision" or other similar programs) for which a charge is made by the television station. 10 Section 11. PROHIBITION FROM ENGAGING IN RADIO AND TELEVISION SALES, SERVICE AND REPAIR. (a) The Grantee, any and all of its officers, agents, and employees, are specifically prohibited from engaging in the sale, service, rental, or leasing of television receivers, radio receivers, or television or radio receiver related parts and accessories with any person, anywhere in the City whether for a fee or charge or not. The Grantee shall prohibit any of its officers, agents, and employees from violating the terms of this section at all times, whether in the performance of duties of the Grantee or otherwise. (b) The Grantee, any and all of its officers, agents, and employees shall not indicate and shall not recommend, in any manner, a specific sale or service establishment or individual be used for the sale or service of any television set. Section 12. SERVICE STANDARDS. (a) The Grantee shall maintain and operate the system and render efficient service in accordance with the rules and regulations as are or may be set forth by the Commission, provided, however, the Grantee shall install and operate the system so that there will be no interference with television reception, radio reception, telephone communications or other installations which are now or may hereafter be installed and in use by the City or any persons in the City. (b) The Grantee shall carry all signals of every television station in accordance with applicable Federal Communications signal carriage rules presently in effect and as may be amended by the Federal Communications Commission. (c) The Community Antenna Television System shall be maintained at all times in conformity with Federal Communications Commission rules and regulations presently in effect and as may be amended from time to time. (d) The Grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions shall, insofar as possible, be preceded by notice to affected subscribers, and shall occur during periods of minimum use of the system. (e) The Grantee shall be responsible for the installation and maintenance of the service wiring from the cable point of entrance to the TV set. (f) Upon termination of service to any subscriber, the Grantee shall promptly remove all its facilities and equipment from the premises of such subscriber upon his request. Section 13. GRANTEE RULES/RIGHTS (a) The Grantee shall have the authority to promulgate such rules, regulations, terms, and conditions governing the conduct of its business as shall be reasonably necessary to enable the Grantee to exercise its rights and the perform its obligations under this Franchise Ordinance and to assure an uninterrupted service to each and all its customers. City retains all rights it currently has under federal and state laws. (b) The right is hereby reserved to the City to adopt, in addition to the provisions contained herein and in existing applicable ordinances, such additional regulations as it shall find necessary in the exercise of its police power; provided that such regulations, by ordinance or otherwise, shall be reasonable and not in conflict with the rights herein granted. (c) City agrees to provide franchisee an opportunity to be heard and thirty (30) days notice prior to the adoption of any proposed promulgation of a rule, regulation, term or condition hereunder. Section 14. LOCAL OFFICE The Grantee shall, throughout the duration of this Franchise Ordinance, maintain an office in the City of Sanford. This office shall be open to the public during all reasonable business hours. Service, installation, and maintenance capability shall be available through the Sanford office. Section 15. FRANCHISE FEE Grantee shall pay to the City a Franchise Fee not to exceed five percent (5%), of a Grantee's gross subscriber receipts derived from the operation of the Grantee's Cable System in the franchise area during each twelve (12) month period commencing on the first of the month after the date the Franchise is granted or transferred. The payment shall be due within sixty (60) days following the annual anniversary date. All payments due hereunder shall be paid by the Company to the City of Sanford and shall be sent to the Director of Finance, City Hall, Sanford, Florida. Section 16. MAPS AND REPORTS TO BE FILED BY THE GRANTEE The Grantee shall file with the City Manager true and accurate maps or plats of all existing and proposed plant construction. Section 17. TRANSFER PROHIBITED. The Grantee 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 Grantee transfer any right under this Franchise Ordinance to any other person without prior approval of the Commission which approval shall not be unreasonable withheld. The Franchise, however, shall not be assigned or otherwise transferred for a period of four (4) years from the date of execution of this agreement. Section 18. 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 negotiations upon reasonable terms with the Grantee for two additional ten (10) year periods. Section 19. PENALTIES. Should the Grantee, (a) In addition to all rights and powers pertaining to the City by virtue of this franchise or otherwise, the City reserves the right to terminate and cancel this franchise and all rights and privileges of the Grantee hereunder in the event that the Grantee: (1) Violates any provision of this franchise or any rule, order, or determination of the City made pursuant to this 13 franchise, except where such violation, other than of subsection (2) below, is without fault or through excusable neglect; (2) Becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt; (3) Attempt to evade any of the provisions of this franchise or practices any fraud or deceit upon the City. (b) Such termination and cancellation shall be by ordinance duly adopted after sixty (60) days notice to the Grantee, and shall in no way affect any of the City's rights under this franchise or any provision of law. In the event that such termination and cancellation depends upon a finding of fact, such finding of fact as made by the City or its representative shall be conclusive; provided, however, that before this franchise may be terminated and cancelled under this section, the Grantee must be provided with an opportunity to be heard before the City Commission. Section 20. SEVERABILITY. In the event any section or part of this Franchise Ordinance shall be held invalid, such invalidity shall not affect the remaining sections or portions of the Franchise Ordinance. Section 21. REPEAL CONFLICTING ORDINANCES All ordinances or parts of ordinances in conflict herewith are to the extent of such conflict hereby repealed. Section 22. EFFECTIVE DATE This ordinance shall take effect upon its passage and adoption. PASSED AND ADOPTED this 25thday of July , A.D., 1988. ATTEST: the ty omm~sslon of the City of Sanford CERTIFICATE I, H. N. Tamm, Jr., City Clerk of the City of Sanford, Florida, do hereby certify that a true and correct copy of ORDINANCE NO. 1956 , PASSED'and ADOPTED by the City Commission of the City of Sanford, Florida, on the 25th day of Julv , 198~ was POSTED at the front door of the City ~11, h theCity of ~nford, Florida, on July 26th, 1988. IN WITNESS WHEREOF, I have hereunto set my hand and the official seal of the City of Sanford, Florida, this ~ th day of Julv , 1988.