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HomeMy WebLinkAboutOrdinance Book 18, Page 909, Ordinance Number 75-6-1136909 V-1 ORDINANCE NO. 75-6- 1136 AN ORDINANCE AMENDING CERTAIN SECTIONS OF CHAPTER 7; "CABLE CObIMUNICATIONS" OF THE CODE OF ORDINANCES OF THE CITY OF PADUCAH, KENTUCKY BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH,KENTUCKY: SECTION 1. That Section 6 (1) (c) 2 "Franchise Subject to Certain Provisions" of CHAPTER 71 of the Code of Ordinances, be amended and reordained so that said section shall hereinafter read as follows: "2. To require proper and adequate extensions of the plant and service and maintenance thereof at the highest practicable standard of efficiency; the city shall require reasonable extension of subscriber service to all residents of the city within eighteen (18) months of the franchisee's receipt of the FCC's certificate of compliance, and the city shall further require reasonable extension of subscriber serviceto all residents of newly developed residential or business areas within the corporate limits of the city within twelve (12) months after the completion of their construction, and the city shall further require the reasonable extension of the system to all newly acquired or annexed territories within twelve (12) months after the new territory has become a part of the corporate limits of the city. The city recognizes that unusual circumstances beyond the control of the franchisee may prevent it from fully complying with the provisions hereof. If such unusual circumstances arise, the franchisee shall immediately advise the city thereof and for good cause shown shall immediately request to be relieved from the provisions hereof, in whole or in part. Upon the submission of such and a showing of good cause and good faith efforts to comply by the franchisee, the city's approval of such request shall not be unreasonably withheld." SECTION 2. That Section 6 (6) (a) "Public Service Installations" of CHAPTER 71 of the Code of Ordinances of the City of Paducah shall be amended and re - ordained so that said section shall hereinafter read as follows: "(6) PUBLIC SERVICE INSTALLATIONS, (a) The franchisee shall, without charge for installation, maintenance or service, make single installations of its standard community antenna service facilities at City Hall, Paducah Public Library, each fire and police station, ' each public and private school within the city, including the Paducah 910 Community College. Such installations shall be made at such reason locations as shall be requested by the respective units of governmen educational institutions and shall include one converter, without cha per installation. Any charge for relocation of such installation shall however, be charged at actual cost. Additional installations at the s location shall be made at cost. No monthly service charge shall be n for distribution of the franchisee's signals within such publicly own, buildings." SECTION 3. That Section 6 (8) "Interconnections" of CHAPTER 71 a Code of Ordinances of the City of Paducah shall be amended and reordained so th section shall hereinafter read as follows: "(8) INTERCONNECTIONS. The franchisee shall interconnect the Paducah CATV System with otl contiguous systems if directed to do so by the Paducah Cable Commu Authority, where such interconnection is legally, technically and e( possible." SECTION 4. That Section 6 (13) "Right of City to Purchase CATV S; of CHAPTER V. of the Code of Ordinances of the City of Paducah shall be amendc< reordained so that said section shall hereinafter read as follows: "(13) RIGHT OF CITY TO PURCHASE SYSTEM. Upon expiration of the term of the franchise, the City, at its selectie and upon payment to the franchisee of a price equal to the fair mark of the system as a going concern, including physical assets and inti including good will, in accordance with the accepted and usual indt practices, (except the valuation of the franchise privilege itself) shall have the right to purchase and take over the system. The procedure for determining the fair market value of the system shall be as follows: Within sixty (60) days following the expiration of the franchise term, both the city and the franchisee shall submit to arbitration (as provided for in Sec. 71-6 (27) "Resolution of Disputes".) in writing their respective declarations of the fair market value of the system as a going business including physical assets, all intangibles, including good will, according to the accepted and usual industry practice. The valuation, however, shall not include• any valuation for the franchise privilege itself. Following it's receipt of the respective Value. Declarations the arbitrator or arbitration panel shall thereafter determine which of the two declarations most nearly represent the true fair market value of the system. In it's determination, the arbitrator or arbitration panel shall utilize the general definition and criteria of fair market value set forth herein, and no others. It shall make it's determination within thirty (30) days after it's receipt of the City and Franchisee's Declaration of Value and forward it's decision to both the City and Franchisee in writing. Within ninety (90) days following it's receipt of the arbitration decision, the City may tender the fair market value of the system as determined by arbitration to the Franchisee. The Franchisee thereafter shall immediately transfer to the City possession and title of all facilities and property, real and personal, of the CATV business, free from any and all liens and encumbrances not agreed to be assumed by the City in lieu of some portion of the purchase price set forth above, and the Franchisee shall execute such warranty deeds or other instruments of conveyance to the City as shall be necessary for this purpose. The Franchisee shall make it a condition of each contract entered into by it with reference to it's operation of any franchise within this city that the contract shall be subject to the exercise of this privilege by the City and that the City shall have the right to succeed to all privileges and obligations thereof upon the final exercise of it's rights provided for herein. In the event ninety (90) days shall elapse following the City's receipt of the arbitration decision or without the City having paid the purchase price as specified above, it's rights and privileges under this paragraph shall immediately terminate. There- after franchise renewal proceedings, as provided for by this ordinance, shall be instituted by the Franchisee and the City within a reasonable period of time. During the pendency thereof, the Franchisee may continue to operate the CATV System according to all the terms and provisions of this ordinance and of the Franchise Agreement. (b) Upon Default. Upon termination of the franchise rights as provided for by this ordinance or by law occasioned by the substantial breach of provisions of the Franchise Agreement or this ordinance, the City, at it's selection and upon payment to the Franchisee of a price equal to the fair market value of the System as a going concern, including physical assets and intangibles, including 911 912 good will in accordance with accepted and usual industry practices , that the valuation shall not include any valuation of the franchise pri itself), shall have the right to purchase and take over the system. 7 procedure for determining the fair market value of the systen and fol City's election to purchase same, following the decision of arbitratioi shall be as set forth in Section 7k-6 (13) (a) above. In the case of th City's purchase of the system and these circumstances, the Franchis shall transfer to the City possession and title to all facilities and prol real and personal, of the CATV business, free from any and all liens encumbrances. This provision, however, may be waived by the Cft� it's option, in whole or in part. (c) Upon Sale. If the Franchisee desires to transfer, assign (or otherwise dispose of franchise under this ordinance to a third party in a manner consister this ordinance, it shall give written notice to the City of same, which shall include written proof of any bona fide offer by the Franchisee t( purchase the system, including all terms and conditions thereof, incl price. Thereafter, the City, at it's selection, and upon payment to tl Franchisee of a price equal to the fair market value of the system, as going concern, including physical assets and intangibles, including will in accordance with accepted and usual industry practices, shall the right to purchase and take over the system (except that the value shall not include any valuation of the franchise privilege itself.) Th( procedure for establishing the fair market value of the system and th4 City's election to purchase same following the arbitrator or arbitration panel's determination of the fair market value shall be as set forth in Section 71-6 (13) (a) above, except that in this instance the Franchisee's declaration of the fair market value of the system shall also include the bona fide offer (s) it has received; and the arbitrator or arbitration panel shall give due consideration to the terms of such offers) in reaching it'r; determination of fair market value, in addition to the criteria described in Section 71-6 (13) (a) above. In the event ninety (90) days shall elapse following the City's receipt of the arbitrator or arbitration panel's determination of fair market value and without the City having paid the purchase price as thereby demanded, Franchisee may transfer, assign or otherwise dispose of it's franchise in the 913 i manner stated in it's initial notice to the City, without further notice, provided a hearing has been provided according to Sec. 6 (14) (c) . In the event that the transferee, assignee or other party acquiring all or part of the Franchisee's rights in the Paducah CATV System agrees to be bound by all of the provisions of this ordinance and of the current Franchise Agreement, the City's approval shall not be unreasonable withheld." SECTION 5. That Section 7 (B) (5) of CHAPTER 74 of the Code of Ordinances of the City of Paducah, Kentucky, shall be amended and reordained so that the same shall hereafter read as follows: "(5) Disconnection. There shall be no charge for disconnection of any of the aforementioned installations or connections. If a subscriber has failed to pay a properly due monthly subscriber fee, thirty (30) days after the due date of said fee, the Franchisee may cause disconnection of the subscriber's cable installation. However, upon payment in full of the delinquent monthly subscriber fee, Franchisee shall promptly reinstate the subscriber's cable service. There shall be no reconnection charge on the first occasion a subscriber shall request reconnection, unless the connection has been physically removed from the premises. However, on the second and any subsequent occasion during the term of this franchise that a subscriber's service has been disconnected as a result of nonpayment of monthly fees, Franchisee may i charge a fee for reconnection, not exceeding two ($2.00) dollars for each such reconnection. There shall be no reconnection fee in any event where disconnection has occurred for any reason other than nonpayment of monthly subscriber fees. However, on the second and any subsequent occasion during each calendar year that a subscriber's service has been disconnected as a result of any valid reason, including it's request, Franchisee may charge a fee for reconnection, not exceeding two ($2.00) dollars for each such reconnection." SECTION 6. That Section 6 (h) (2) of CHAPTER 73 of the Code of Ordinances of the City of Paducah shall be amended and rcordnined so that said section shall hereinafter read as follows: "(2) During the term of this Franchise. Agreement, the Franchisee shall also pay to the City an annual amount equal to two (22) percent of the annual 914 it — i gross subscriber revenues received by it from operations conducted within the city. The aforesaid two (2 0) percent of the annual gross subscriber revenues shall be used by the Paducah Cable Communications Authority for the purpose of regulation of Cable Communications within the corporate limits of the City of Paducah, Kentucky." SECTION 7. That Section 6 (29) (b) of CHAPTER 71 of the Code of Ordinances of the City of Paducah shall be amended and reordained so that said section shall hereinafte read as follows: "(b) Upon the effective date of the Franchise Agreement, the Franchisee shall furnish proof of the posting of a faithful performance bond running to the City with good and sufficient surety approved by the City, in the initial sum of one hundred thousand ($100,000.00) dollars; however, for the first five (5) years of the franchise term, the bond shall be reduced in ten thousand ($10,000.00 dollar increments per year for each year of faithful performance. Following the five (5) years of faithful performance by the Franchisee, ie, during which no amounts of said bonds shall have been recovered by the City as damages, the amount of said bond shall be reduced to it's minimum of fifty thousand ($50,000.00) dollars; said bond shall be conditioned that the Franchisee shall well and truly, observe, fulfill and perform each and every term and condition of the Paducah Ordinance for Regulation of Cable Communications and the Franchise Agreement, and that in the case of any breach of condition of the bond, the amount thereof shall be recoverable from the principal and the surety, jointly and severally, thereof by the City for all damages resulting from the failure of the Franchisee to well and truly observe and perform any provisions of this ordinance or the Franchise Agreement. The aforesaid bond shall be mnintained by the Franchisee throughout the term of the franchise and written evidence of the payment of required payments shall be filed and maintained both with the office of the City %lanager and the Paducah Cable Communications Authority." SECTION 8 That Section 6 (4) of CHAPTER 71 of the Code of Ordinances of the City of Paducah, Kentucky, shall be amended and reordained so that said section shall hereinafter read as follows - "(4) STATE OF THE ART. The Franchispe agrees that it will rake every reasonable effort to upgrade it's facilities, equipment and services throughout the term of this franchise, so that the system will remain as advanced as the current state of technology may allow. The Franchisee shall insure that channel capacity is available to meet the legitimate reasonable demands thereof by users. The Franchisee agrees that the Paducah Cable Communications Authority shall be able to order the Franchisee to comply with this section within a reasonable time thereafter. However, when such requirements require changes in facilities, services and equipment, which are compensatory to the Franchisee, full consideration of their cost and compensatory nature shall be given by the Paducah Cable Communications Authority. Should any such required changes be so ordered, their compensatory nature shall be considered with respect to the then current rate structure of the Franchisee and any rate increase necessary to make such changes compensatory to it." SECTION 9. That Section 4 (c) of CHAPTER 71 of the Code of Ordinances Df the City of Paducah, Kentucky, shall be amended so as to add the following sub- section (9). "(9) Legislative Intent. The City does hereby declare that it is it's intention that a Franchisee shall be allowed to operate the CATV system in a reasonably profitable and compensatory manner including, but not limited to, it's ability to meet it's valid debt repayment obligations. This principal shall be considered in any renegotiation or arbitration procedures conducted in accordance with this ordinance or the Franchise Agreement. No change in city adopted regulations concerning the operation of the CATV system shall be made which prevent Franchisee's operating CATV system in a reasonably profitable manner." 915 SECTION 10, If any parts of this ordinance are for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The Commission hereby declares that it would have passed this ordinance or each part or parts thereof irrespective of the fact that any one part or parts be declared invalid. SECTION 11. This ordinance amends various sections of Ordinance No, 74-1-919 passed by the Board of Commissioners on .January 4, 1974. SECTION 12. This ordinance, shall be in full force and effect from and after its adoption. Xf' Passed by the Board of Commissioners June 3, 1975 Recorded by Sarah Thurman, City Clerk, June 3, 1975.