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HomeMy WebLinkAboutOrdinances Book 17, Page 1100, No Resolution NumberA RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER TO ADVERTISE FOR BIDS FOR THE SALE OF A NON-EXCLUSIVE FRANCHISE TO OPERATE A CABLE TYPE TELEVISION SIGNAL DISTRIBUTION SYSTEM WITHIN THE CITY OF PADUCAH, KENTUCKY, AND SETTING FORTH THE TERMS, CONDITIONS AND SPECIFIC- ATIONS FOR SUCH FRANCHISE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the City Manager be, and he is hereby, authorized and directed to advertise for bids for the sale by the City of Paducah of a non-exclusive franchise to operate a cable type television signal distribution system within the City, said franchise and said bids to have and meet the following minimum terms, conditions and specifications: (a) The proposed franchise shall be non-exclusive and shall permit the purchaser thereof, its successors and assigns to erect and construct utility poles and operate and maintain a television signal cable service system, including all necessary poles, wires, amplifiers, cables and other equipment thereunto appertaining in, upon, over, across and along the streets, alleys, bridges and public places within the present and future corporate limits of the City of Paducah, Kentucky, hereinafter called "City", for the distribution and sale of television signals in and beyond said City. (b) The word "television", wherever used in this ordinance, shall mean a system for transmission of audio signals and/or visual images or any other type of closed circuit transmission and/or signal transmission by means of electrical impluses. (c) Any successful bidder shall erect and maintain its transmission and distribution system, wires, poles, cables, antennas, towers, and other appliances and appurteances so as not to endanger or interefer with the lives of persons or to interfere with any improvements of the City, nor shall the same hinder or obstruct the free use of the streets, avenues, alleys, bridges, or other public property. Should the City construct, install, change or modify a public improvement which requires the relocation or modification of any franchisee's trans- mission or distribution system, said party shall, upon notice from the City, make such required relocation or modification at its own expense, and should the City adopt any ordinance or regulation requiring that poles, wires, cables and other appliances used, or to be used, by utility 1101 companies be placed under ground, then any franchisee shall comply therewith at its own expense. Construction and maintenance of the transmission and distribution system, including all house and building connections, and all hardware and equipment used therefor, shall comply with the provisions of the National Electric Code, the Standards of Safety, and applicable laws of the Commonwealth of Kentucky, and all applicable ordinances and regulations of the City. Should the City perform, or have performed, construction work for which it becomes necessary to move any wires, poles, etc. of the franchisee, any franchisee so affected will move the same at its own cost. (d) Any successful bidder shall be required to indemnify and save the City whole and harmless from any damage occasioned by or arising out of construction, maintenance, operation or repair of the said distribution system and excavation in public ways, and any franchisee authorized to operate under any franchise shall have a bond with good corporate surety or an indemnifying agreement, either being in favor of the City for sums in the amount of $100,000.00 to guarantee payment for all labor or material necessary for repair, replacement and/or reconstruction of public facilities and public ways to restore same to their former condition. (e) Any successful bidder shall be required to maintain adequate insurance covering public liability, personal or property damage insofar as such liability or damage may accrue to persons or to property on account of or arising from the negligent construction, maintenance, operation, use, presence or removal of its property, and the City of Paducah, Kentucky, shall be named as an additional party insured, and the amounts of insurance to be required shall be the same as those generally applicable for persons, firms and corporations doing business with the City and as may be established and modified from time to time by the City Legislative Body. (f) Installation and maintenance of any franchisee's equipment shall be such that no interference is caused to existing communication systems and so as not to distort or interfere with direct off the air television signals, and the said franchisee shall correct such interferences at its own costs and to the safistaction of the City, and any other body having regulatory power over CATV, and the successful bidder shall save the City harmless from any damages of any nature arising from any such interference. 1102 (g) Any successful bidder for the franchise shall provide a quality cable system with a minimum capability of 20 channels. One channel shall be allocated to the City for its exclusive use, and the said franchisee shall provide free installation and service at each municipally owned building in the City as may be designated by the City. Provision shall also be made for an audio alert override for emergency purposes. Notwithstanding any lesser requirements herein, the successful bidder shall always be subject to the minimum rules and regulations of the Federal Communications Commission or other regulatory body having jurisdiction over CATV. There shall also be provided, without charge, one channel for closed circuit educational purposes for the use of all schools located in the City, and for the period of any franchise, any franchisee shall provide, without charge, a free service drop to all schools in the City as may be authorized by the Board of Commissioners of the City. The successful bidder shall provide a free, dedicated, non- commercial public access channel available at all times on a non- discriminatory basis. One channel shall also be reserved for local origination programming. Any franchisee shall provide at least one other channel, for programs with a high degree of local interest, such as high school sports, local news and local activities. (i) Any successful bidder for the franchise to be created may make an installation charge to the customer in a sum not exceeding $10.00, and shall state what charges, if any, shall be made for initial installa- tions. A monthly service charge may be levied by any franchisee for the use and enjoyment of its services in any sum not exceeding $5.50 per month for the first television set, and $1,50 per month for each additional receiver connection on the premises for each customer. Each separate family unit within a multiple family dwelling shall be considered as one customer. The monthly service charge and installation charge shall not exceed the amount specified without approval of a majority of the members of the Board of Commissioners of the City of Paducah after a public notice and hearing has been held to consider any proposed change in authorized charges. All applicable taxes required by law shall be charged and collected in addition to the above charges, and it shall be the franchisee's respon- sibility to pay the same to any proper governmental body. 1103 All subscriptions for services under any franchise shall be on a voluntary basis, and they may be terminated at any time by the customer or the franchisee, subject, however, to such regulations as may be filed with and approved by the Board of Commissioners of the City of Paducah. No franchisee shall discriminate in any way in rendering of its services to customers within the corporate limits of the City. (j) The successful bidder shall state the amount it will pay to the City of the gross receipts received from the monthly service charges from all subscribers. Payments for such will be made semi-annually within thirty days after the last day of June and the last day of December of each year during the period of the franchise. Upon written request by the City, any franchisee shall permit its books and accounts to be examined by any certified public accountant selected by the City to determine the gross receipts of such franchisee as received from its customers. (k) The successful bidder shall be prohibited from engaging in the business of selling, installing, servicing or leasing of television sets or radio receivers, nor shall any franchisee engage in the operation of any pay television, nor shall it deliver signals to any person engaged in pay television, within the City of Paducah without prior approval by the FCC and the Board of Commissioners of the City. Pay television as herein defined is any television where a charge is made on a per program basis. (1) No transfer, assignment or lease of any franchise to be authorized shall be effective until the Board of Commissioners of the City of Paducah shall have approved the same and until the vendee, assignee or lessee shall have filed in the office of the City Clerk an instrument duly executed reciting the fact of such sale, assignment or lease, with a written acceptance of the terms of any franchise and an agreement to perform all of the conditions thereof. (m) The term of any franchise to be created shall be for a period of twenty years from the date thereof. Any franchise to be created and let according to the terms, conditions and specifications of this resolution shall also be subject to any restrictions or limitations arising as result of any pre-existing franchise for cable television services in the City of Paducah, if any there be, and notice is hereby given that in 1956 the City of Paducah created a cable television franchise and authorized its sale to Midwest Video Corporation which subsequently attempted to assign all of its right, title and interest to Multi -Channel Cable Company 1104 of Portsmouth, Ohio. The City of Paducah contends that the franchise was abandoned, that it was void ab initio, and that it was in itself non- exclusive. The said franchise as established was to have been for a term of twenty years from April 17, 1956. (n) The distribution system to be installed shall not be abandoned either in whole or in part without the consent of the Board of Commissioners. In the event of the failure of any franchisee to commence construction of the system within nine months after the date of approval and acceptance of any offer for a franchise, or within six months after permission has been granted for a cable television service in the City of Paducah, Kentucky, by the Federal Communications Commission, whichever is later, and in the event of any failure by the successful bidder to render community television service on a uniformly available basis throughout the corporate limits of the City within twelve months after construction is commenced, the Board of Commissioners shall have the right, on reasonable notice to the successful bidder to declare any franchise granted hereafter as forfeited; provided, however, failure to comply with these terms by reason of circumstances beyond the reasonable control of the company which could not be anticipated at the time of the acceptance of the terms, shall not be sufficient grounds to declare a forfeiture. To insure compliance with the terms, specifications and conditions of the proposed franchise, and to insure the entry of a contract, each bidder shall submit with his bid the sum of $5,000.00 in the form of cash, certified check, or bid bond with good corporate surety to be conditioned for return to the bidder after the execution of a franchise agreement. Bid bonds of unsuccessful bidders shall be returned within fourteen days after the opening of bids. The successful bidders shall be required to furnish a performance bond in the amount of $50,000.00, conditioned upon the faithful and timely compliance with all provisions and terms, conditions and specifi- cations contained in this resolution and in any franchise to be created in accordance herewith. (o) At the time any franchise becomes effective, the successful bidder shall furnish a bond to the City in the amount of $10,000.00, in such form and with such surety as shall be acceptable to the City, guaranteeing the payment of all sums, which may at any time become due from the franchisee to the City under the terms of the franchise 1105 (except such sums as are covered by insurance, bid and performance bonds, and indemnification agreements heretofore set out). (p) The successful bidder shall grant to the City, free of expense, joint use of any or all poles owned by it for any proper municipal purpose, insofar as it may be done without interfering with the free use and enjoyment of the franchisee's own wires and fixtures, and the City shall hold the franchisee harmless from any and all actions or damage caused by the placing of the City's wires or appurtenances upon the poles of the Company. (q) Any cable television franchisee shall provide a high technical quality of service for its customers, and any franchisee shall be subject to the requirements of the Board of Commissioners of the City of Paducah, Kentucky, as may be hereafter enacted during the term of any franchise requiring the upgrading and providing of technical improvements in the system as same may become available from discoveries and inventions within the television and cable television industry. In determining requirements for technical quality and upgrading and providing of technical improvements within the system, the Board of Commissioners of the City of Paducah may require the best that is reasonably obtainable within the industry. Rates for new or additional sercices must be approved by the Board of Commissioners unless determined and/or standardized by a rating agency such as the FCC. (r) Any franchisee shall make available the cable television services on a uniform and non-discriminatory basis throughout the corporate limits of the city as now exists or as may hereafter exist. In the event the City should increase the size of its corporate limits through annexation, any franchisee shall provide uniform availability of service throughout the new territory within twelve months after such annexation or completion of the original installation, whichever is later; provided however, the franchisee shall have the right and option to delay installation of facilities in portions of areas of newly annexed territory until the number of customers per linear mile shall equal fifty (50) after which time service must be provided within twelve months. SECTION 2. The City Manager shall advertise for sealed bids by posting a notice at the City Hall door and by inserting notice of the request for bids in the Paducah Sun -Democrat as provided for by law. 1106 Bidders shall be notified to request copies of the terms, conditions and specifications from the office of the City Manager. All bids shall be sealed and no bid shall be received after the hour fixed in the notice for the opening of same. All bids received by the City Manager up to the time fixed in the notice for the opening of same shall be filed with the Board of Commissioners who may let a contract to the best and most responsible bidder, and the Board of Commissioners shall reserve the right to reject any and all bids, and the City shall not become legally obligated to create a franchise or accept any bid, and no franchise shall exist until the Board of Commissioners shall have passed an ordinance creating the franchise and accepting the bid of the successful bidder. SECTION 3. This resolution shall be in full force and effect from and after its adoption. Mayor Passed by the Board of Commissioners August 8, 1972 Recorded by Sarah Thurman, City Clerk, August 8, 1972.