13790®N
ORDINANCE NO. 13,790
TO GRANT TO RIVERSIDE CABLE TV, INC. THE FRANCHISE,
RIGHT AND PRIVILEGE TO CONSTRUCT, ERECT, OPERATE AND
MAINTAIN IN, UPON, ALONG, ACROSS, ABOVE, OVER AND UNDER
THE STREETS, ALLEYS, PUBLIC WAYS, AND PUBLIC PLACES NOW
LAID OUT OR DEDICATED, AND ALL EXTENSIONS THEREOF, AND
ADDITIONS THERETO IN THE CITY, POLES, WIRES, CABLES,
UNDERGROUND CONDUITS, MANHOLES, AND OTHER CONDUCTORS,
AND FIXTURES NECESSARY FOR THE MAINTENANCE AND OPERATION
IN THE CITY OF A CABLE TELEVISION SYSTEM FOR THE INTER-
CEPTION, SALE AND DISTRIBUTION OF TELEVISION AND RADIO
SIGNALS.
BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK
SECTION 1. That the franchise, right, and privilege is
hereby granted to Riverside Cable TV, Inc. to establish,
maintain, and operate in the City of Little Rock a Cable
Television System upon the condition that within: sixty (60)
days after the date of the passage of this ordinance the
Grantee shall file with the City Clerk its unconditional
acceptance of this franchise and promise to comply with and
abide by its provisions, terms and conditions. Such accep-
tance and promise shall be in writing duly executed and
sworn to, by or on behalf of the Grantee before a notary
public or other officer authorized by law to administer
oaths, provided, however, that should the Grantee fail to
comply with the latter prescribed filing of acceptance, the
Grantee shall acquire no rights, privileges, or authority
under this franchise whatever; further, the Grantee shall
enter into a contract with the City in substantially the
following form:
THIS CONTRACT, made this 19th day of February, 1980, by
and between the City of Little Rock, a municipal corporation
of the State of Arkansas, hereinafter referred to as "CITY ",
and Riverside Cable TV, Inc., hereinafter referred to as
"GRANTEE";
W 1 T N E S S E T H
That for and in consideration of the mutual undertaking
of the parties to this contract, the City and the Grantee
hereby covenant and agree each with the other as follows:
1. Purpose.
The purpose of this ordinance is to provide for the
granting of franchises to operate a Cable Television System
in the City of Little Rock, in the public interest in accor-
dance with all State and Federal laws.
2. Definitions:
A. "Access Channel" includes all public and
Leased Channels.
B. "Basic Service" means the delivery by the
Grantee of those audio and visual signals required or
permitted by the FCC to be carried on a Cable Television
System.
C. "Channel" means a frequency band which is
capable of carrying a standard broadcast audio -video
television signal.
D. "City Manager" means the City Manager of
Little Rock, or his duly authorized representative.
E. "City" means the City of Little Rock.
F. "Board" means the Board of Directors of the
City of Little Rock.
G. "Cable Television System ", or "CTS ", or
"System ", means any facility which is operated to per-
form for hire, ether in whole or in part, the service
of receiving, amplifying, modifying or originating
television. radio or other electrical signals for the
purpose of transmitting or distributing such signals by
wire, cable or other means to subscribing members of
the public, except that sucli definition shall not
include: (1) any system which serves *?wer than two
hundred fifty (250) subscribers; (2) any system which
- 2 -
serves only the residents of one or more continuous
apartment dwellings under common ownership, control or
management, and commercial establishments located on
the premises of such dwellings; or (3) any system
commonly known as a master antenna system.
H. "Depreciated Value" shall mean the value as
shown on the Grantee's books and records of all the
Cable Television System's tangible assets after depreci-
ation which shall be calculated to the end of the
Grantee's last fiscal year. Said value shall not
include "good will" or any value that Grantee's books
and records attribute to the Franchise.
I. "Fair Market Value" shall mean the price that
a willing buyer would pay to a willing seller for a
going concern based on the system valuation and sale
multiples prevailing in the industry at the time at
which the Board elects to exercise its option.
J. "FCC" means the Federal Communications
Commission.
K. "Franchise" means and includes any authori-
zation granted hereunder in terms of a franchise,
privilege, permit, license or otherwise to construct,
operate and maintain a Cable Television System in the
City.
L. "Gross Revenues" means any and all compensation,
in whatever form, exchange or otherwise, derived from
all cable services in the City, not including any taxes
on services furnished by the Grantee imposed directly
on any subscriber or user by a city, county, state, or
other governmental unit and collected by the Grantee
for such entity.
M. "Grantee" means the person, firm, or corpora-
tion to whom or to which a Franchise is granted by the
Board under this ordinance, or anyone who succeeds said
person, firm or corporation in accordance with the
provisions of this Franchise.
- 3 -
N. "Leased Access Channel" means a channel on
the System which is reserved for carriage of program
material provided by persons who lease channel time
from the Grantee.
0. "Net Profit" shall mean the amount remaining
after deducting from Gross Revenues all of the actual,
direct and indirect, expenses associated with operating
the Cable Television System including the Franchise
fee, interest, depreciation and Federal or State income
taxes.
P. "Passed by the CTS" means the construction of
the System in a given area has been completed such that
no major construction is required to provide Basic
Service upon request.
Q. "Residential Subscriber" means a purchaser of
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.
R. "Streets" means the surface space of, above
and below streets, avenues, highways, boulevards, bridges,
tunnels, alleys, public places, and any other rights -of-
way and easements within or belonging to the City.
S. "Subscriber" means a purchaser of service
delivered over the System.
T. "Total Number of Subscribers" means the
number of Subscribers determined as follows: In the
event a single fee is paid for service to a multiple
dwelling unit, the number of equivalent Subscribers
shall be determined by dividing such fee by the then
prevailing Residential Subscriber rate and rounding the
resulting quotient to the nearest whole number. To
this number shall be added the number cf all other
Subscribers.
3. Franchise required; Duration; Exclusivity.
A. The City shall require a Franchise for the
use of the streets within the City for the construction,
- 4 -
operation, and maintenance of a Cable Television System. No
System shall be allowed to operate without a CTS Franchise.
B. The Franchise shall be granted for a term of
fifteen (15) years; thereafter, after full public hearings,
the Franchise may be renewed for terms of ten (10) years as
provided for in Section 16 hereof.
C. The Franchise, rights and privileges herein
granted are not exclusive and nothing in this ordinance
shall be construed to prevent a grant by the City of a
similar franchise, right and privilege to other persons or
corporations.
4. Use of the Streets.
A. The Grantee shall have the right to use the
streets of the City for the construction, operation and
maintenance of a Cable Television System as prescribed,
regulated and limited by provisions of this ordinance, and
by state, local and Federal law, both present and future.
B. The right granted shall allow the Grantee to
construct, erect, maintain, and operate such poles, conduits,
towers, manholes, subways, wires, cables, appliances and
equipment necessary for the safe and efficient operation of
the CTS; provided that:
(1) The undergrounding of cables is encouraged.
In any event,, cables shall be installed
underground where all existing utilities
are already underground. Previously in-
stalled aerial cable shall be under-
grounded in concert with utilities when
they are undergrounded.
(2) To prevent unnecessary damage to streets,
rights -of -way and property, the installa-
tion of cable television service cables
underground shall be accomplished in the
new subdivisions at the same time and in
the same trench as in other communication,
electric and other permanent services to
- 5 -
structures. Developers of new residential
buildings or mobile homes within a new
or undeveloped subdivision, new residential
units within new multiple occupancy resi-
dential developments, and new commercial
and industrial buildings and structures
shall treat cable television facilities
as they treat other communication facili-
ties, utilities and other underground
facilities, in regard to availability
and cost of trenching for underground.
(3) The Grantee shall utilize the facilities
of utilities and subways, wherever possible.
(4) In no case may the Grantee install poles
where underground facilities are in use
by utility companies, provided, however,
the City Manager shall have the option
of permitting such installation.
(5) Nothing in this section shall be construed
to act as a waiver of the power of the
City to require by ordinance the substi-
tution of underground service for overhead
service, if all other utilities are so
required.
(6) Nothing in this section shall be construed
to relieve the Grantee from its obligation
to pay any fees or rents for its use of
facilities of the City, utility companies,
or other legal entities.
C. The Grantee Shdll not erect or install, move,
alter, or change the location of any pole, tower, wire,
conduit, subway, line, manhole, cable or equipment in any
street, alley or other public place of the City or dig, cut
or disturb any street, alley or other public place of the
City unless prior written notice of its intention to do so
_;=
is given to such department or agency of the City as shall
have been or may be designated by the City Manager, or the
Board of the City and permission in writing so to do is
granted by such department or agency or such requirement is
waived by such department or agency. Such permission shall
be conditioned upon compliance with the terms, conditions,
provisions and limitations of this Franchise and with such
other terms, provisions, conditions and limitations as will
preserve, protect and promote the safety of the public using
the streets, alleys and other public places by the City or
by any other public utility or public service corporation
for their respective purposes and functions. Such permission
shall also be conditioned upon such other terms, conditions,
provisions and limitations as will preserve, protect and
promote the health, safety and general welfare of the City
and its citizens subject to the lawful exercise of the
police power.
D. In the event the relocation, construction,
reconstruction, maintenance or repair by the City of any of
its facilities or services now or hereafter acquired, and
including, but not limited to, any street, alley or other
public place, sewer, electric, water, fire alarm, emergency
communicaton, or traffic control facilities or any part
thereof, or in the event access to any street, alley or
other public place to or from any property of the City is
required, and it is necessary to move, alter or relocate,
either permanently or temporarily, any of the Grantee's
poles, towers, wires, appliances, conduits, subways, lines,
manholes, cables or equipment or any part thereof in the
public right -of -way in order for the City to relocate,
construct, reconstruct, maintain or repair any such facility,
service, street, alley or other public place or any such
sewer or electric, water, fire alarm, police communication
or traffic control facility, or any part thereof, or to
obtain access to or from such property, upon notice from the
- 7 -
City, the Grantee will move, alter, or relocate such pole,
tower, appliance, conduit, subway, line, manhole, cable or
equipment or part thereof, at its own cost and expense; and
should the Grantee fail, refuse or neglect to comply with
such notice, such pole, tower, wire, appliance, conduit,
subway, line, manhole, cable or equipment or part thereof
may be removed, altered or relocated by the City at the cost
of the Grantee and the City shall not be liable to the
Grantee for damages resulting from such removal, alteration
,Dr relocation.
E. The Grantee shall at no cost to the City
erect, install and maintain on any of its poles, towers,
wires, appliances, conduits, subways, lines, manholes, cables
or equipment in or near the streets, alleys and other public
places of the City such reasonable devices to apprise or warn
persons using the streets, alleys and other public places of
the existence of such poles, towers, wires, appliances,
conduits, subways, manholes, lines, cables or equipment as
shall be from time to time reasonably prescribed or approved
for purposes of public safety by such department or agency
of the City as shall have been or may be designated for the
purpose by the City Manager or Board of the City.
F. The Grantee shall have the right to remove,
trim, cut and keep clear of its poles, towers, wires and
other overhead appliances and equipment the trees in and
along the streets, alleys and other public places of the
City, provided it first obtains a written permit from the
City so to do, except in cases of emergency and further
provided that, in the exercise of such right, the Grantee
shall not cut, remove, trim or otherwise injure such trees
to any greater extent than is reasonably necessary for the
installation, maintenance and use of such poles, towers,
wires and other overhead appliances.
G. The Grantee, in the exercise of any right
granted to it by this Franchise, shall at no cost to the
m:=
City promptly reconstruct, replace, restore or repair any
facility or service of the City, now or hereafter acquired,
including, but not limited to, any street, alley, or other
public place, sewer, electric, water, fire alarm, police
communication or traffic control facility or any part thereof
which may be damaged, disturbed, or destroyed by the exercise
of any such right, in a manner, with such materials and to
the satisfaction of such department or agency as shall have
been or may be designated by the City or Board of the City;
provided that, should the Grantee fail to comply with these
requirements, the City shall have the right to carry out the
provisions of this paragraph and Grantee shall reimburse the
City for all expenses incurred in so doing.
5. Maintenance of the System.
A. The Grantee shall at all times employ ordinary
care and shall install and maintain devices or systems for
preventing failures and accidents which are likely to cause
damage, injuries or nuisances to the public.
B. The Grantee shall install and maintain its
wire, cable, fixtures and other equipment so as not to
interfere with the equipment of any utility of the City, or
any other entity lawfully and rightfully using the conduit,
pole, subway or other part of the right -of -way.
C. The Cable Television System shall at all
times conform to the construction and maintenance standards
set forth in the Grantee's bid and to the standards set
forth below:
(1) (a) Methods of construction, installation,
and maintenance of the City's Cable Television System
shall comply with the National Electrical Safety Code
of 1975 (ANSI CI -1975) to the extent that such Code is
consistent with local law affecting the construction,
installation, and maintenance of electric supply and
communications lines. To the extent that such Code is
inconsistent with other provisions of this Franchise or
with local law, the latter shall govern.
- 9 -
(b) Any tower constructed for use in the City's
Cable Television System shall comply with the standards
contained in Structured Standards for Steel Antenna
Towers and Antenna Supporting Structures, EIA Standards
RS -222 -A as published by the Engineering Department of
the Electronic Industries Association, 2001 Eye Street,
N.W., Washington, D. C. 20006.
(c) Installation and physical dimensions of
any tower constructed for use in the City's Cable
Television System shall comply with all appropriate
Federal Aviation Agency regulations, including, but not
limited to, Objectives Affecting Navigable Airspace, 14
C.F.R. 77.1 et. seq., February 1965.
(d) Any antenna structure in the City's
Cable Television System shall comply with Construction,
Marking and Lighting of Antenna Structure, 47 C.F.R.
17.1 et. seq., September 1967.
(e) All working facilities and conditions
used during construction, installation and maintenance
of the City's Cable Television System shall comply with
the standards of the Occupational Safety and Health
Administration.
(2) Each cable distribution system on the public
streets shall comply with all applicable laws and
ordinance and governmental regulations regarding clear-
ances above ground.
(3) The Grantee shall at all times use ordinary
care and shall install and maintain in use commonly
accepted methods and devices for preventing failures
and accidents which are likely to cause damage, injuries,
or nuisances to the public.
(4) The Grantee shall construct and operate the
system and related facilities in accordance with all
generally accepted related industry codes, standards
and recommendations, that are applicable.
- 10 -
D. All conductors, cables, towers, poles and
other components of the System shall be located and constructed
by the Grantee in back of street curbs so as to provide
minimum interference with access by adjoining property
owners to the streets and public ways nor shall any pole or
other fixtures of the Grantee placed in the public way
interfere with the usual travel in such public way.
E. Neither the Grantee, its officers nor its
employees shall engage in the business of selling, leasing,
repairing or installing television receivers, radio receivers
or accessories for such receivers within the City of Little
Rock during the term of this Franchise. This paragraph shall
not preclude the selling, leasing, repair or installation of
such converters or other devices as may be necessary to
render the Subscribers' receiver capable of receiving all
channels of the Cable Television System.
6. Construction Schedule and Reports.
A. Upon accepting the Franchise, Grantee shall,
within sixty (60) days, file the docume
obtain all necessary Federal, State and
permits and authorizations required for
business, and shall upon request of the
to the City Manager on progress in this
such documents are in hand.
ats required to
local licenses,
the conduct of its
City submit reports
respect until all
B. Construction and installation of the system
shall be completed as presented in Grantee's proposals,
within three (3) years of the date that FCC certification is
acquired.
C. The wiring schedule offered by the Grantee
and accepted by the City includes all property inside the
City and will be wired within two (2) years as specified in
the Grantee's proposal to the City.
Although Grantee will make every effort to adhere
to this schedule, it may be affected by several factors
beyond its control, e.g., acts of Cod, labor strikes, incle-
ment weather, material shortages, and the ability of the power
- 11 -
and telephone utilities to provide the necessary pole line
rearrangements in a timely manner.
Line Extension Policy: In any area where the average
density is less than seven (7) actual Subscribers per quarter
mile of cable, or is served by underground utilities, the
system shall bear its pro rata share of the current aerial
construction cost based on the actual number of Subscribers
per quarter mile divided by seven (7). The remaining construc-
tion cost will be borne on a pro rata basis by each actual
cable television applicant committing to service within the
pro rata extension. In the case of new subdivisions, developers
may elect to bear the remaining costs, and service will be
made available to residents at normal rates. Mileage will
be measured from the end of the nearest trunk cable.
D. Every three (3) months after the start of
construction, Grantee shall furnish the City a report on
progress of construction until complete. The report shall
include a map that clearly defines the areas wherein regular
Subscriber service is available.
E. Copies of any agreements, reports, petitions,
correspondence or other documents filed with any local,
state or federal government or any person or legal entity
relating to the Grantee's operations within the City shall
be filed with the City Manager simultaneously.
7. System Description and Service.
A. System design and capacity shall be as described
in Section IX, Proposed System Design, of the franchisee's bid
proposal which is hereby incorporated by reference herein as
if specifically set out here word by word.
B. System services shall include but are not
limited to all services described in the franchisee's bid
proposed in proposed Section V serving its entirety and are
hereby incorporated by reference herein as if specifically
set out here word by word.
- 12 -
8. Rates.
A. Initial Rates to Subscribers - The Grantee
shall be permitted to charge subscribers up to the following
rates for its services:
Connection
Aerial /Underground
Residential
1st outlet without converter
Additional Outlet without
converter
FM with original installation
FM separate installation
Relocation of TV
Reconnection Services
Converter * **
Remote control converter * **
Hotels, Motels, Hospitals
1st outlet with converter
Each addit'1 outlet with
converter
Without converter
Apartments - Bulk Rate
One billing to owner
Up to 5 units
6 to 49 units
50 to 99 units
Monthly
$15.00 / $25.00* $ 4.95
10.00 / 25.00 **
10.00 **
10.00*
10.00
10.00
10.00*
10.00*
Labor & Materials
Labor & materials
Labor & materials
1.00
1.00
1.00
1.50
2.50
2.50
2.50
1.00
Same as residential
Same as residential
Labor
&
materials
Less
150%
Labor
&
materials
Less
15%
100 and over Labor & materials Less 15%
(With converters) -- --
(w/wo FM) -- --
Multiple Units
Apartments, Nursing Homes,
Public Housing, etc. Same as residential
* Waived during first thirty (30) days service is available,
and may be waived or reduced throughout the term of the
Franchise for marketing purposes on a nondiscriminatory basis.
** Waived if done at the same time as another connection.
** *May be purchased from the company at cost thus eliminating
monthly charge.
- 1 3 -
Other Rates:
Installation: $10.00*
Service Charges:
Home Box Office
Showtime
Economy movies
Parental Guidance
be purchased from
cost.
$ 6.50 /mo.
8.00 /mo.
4.00 /mo.
Key may
company at
*Applies only if connections are made separate from installation
of first Basic outlet.
`tudio and equipment usage rates
Noncommercial users (public access,
governmental, nonprofit groups, etc.)
Governmental and Educational Facilities:
Connection fees
One cable outlet (per
facility)
More than one outlet
(per facility)
Monthly charges:
Leased Channel Rates:
Noncommercial (to public)
Commercial (to public)
Home Subscriber
Network (HSN)
Institutional
Communication
Network (ICN):
No charge
No charge
None
Time and
materials
Time and materials
HSN: None
ICN: $15.00 per
month
terminal
charge
Dependent upon extent of
use and to be determined
by lessee requirements
Private Channel (institutional)
B. Rate Change Procedure - (1) The rates as
specified in paragraph "A" above shall be in effect for a
minimum period of two (2) years from the date of providing
initial service.
(2) The Grantee may establish rates for
service from time to time thereafter by filing with the City
Manager a schedule of rates thirty (30) days prior to their
implementation.
(3) Between September 1 and November 30 of
the years 1981, 1984, 1987 and 1990, and each three (3) years
- 14 -
thereafter, the Board shall determine whether it will assume
rate modification authority. If the Board declines rate
modification authority, then rates may be modified by the
Grantee as specified in subparagraph (2) above. If the
Board assumes rate modification authority, then for the next
three (3) years rates shall be subject to modification only
by the Board and only in accordance with the following
procedures:
(a) The Grantee may petition the Board for a
change in rates by filing a revised rate schedule
including its justification(s) for said proposed
new schedule.
(b) Within ten (10) days of notification by
the Board of the place and time established for a
hearing on said petition, the Grantee shall notify
its Subscribers of the hearing by announcement on
at least two (2) Channels of its system, between
the hours of 7:00 and 9:00 p.m. for five (5)
consecutive days. Additionally, hearings shall be
announced in a newspaper of general circulation at
least five (5) days before the date of the hearing.
Following all proper notice, but in no event later
than ninety (90) days from the date of said petition,
the Board shall hold an appropriate public hearing
to consider the proposed new rates, at which
hearing all parties desiring to be heard, including
the Grantee, shall be heard on any matters relating
to the performance of this Franchise, the Grantee's
services, and the proposed new rates.
(c) Within ninety (90) days after said hear-
ing, the Board shall render a written decision
on the Grantee's petition, either accepting, re-
jecting or modifying the same and reciting the
basis of its decision.
(d) If the Board fails to act within six (6)
months of the Grantee's petition pursuant to
- 15 -
paragraph B(3)(a) above, the Grantee shall there-
after be entitled to put its proposed new rates
into effect on a provisional basis, provided that
it shall keep a full and accurate accounting of
all income resulting from said provisional rates
and shall be obliged for a period of six (6)
months thereafter to refund the amount by which
said provisional rates exceed the rates ultimately
established by the Board. Upon request by the
Board, the Grantee shall provide a bond or other
reasonable surety to ensure that possible refunds
due under this subsection shall be promptly made.
The bond or surety shall be in an amount not to
exceed the difference between the amount of revenues
generated in six (6) months at the previously
existing rates and the amount of revenues expected
to be generated in six (6) months at the provisional
rates.
(e) The criteria for the Board's decision in
such matters shall be the establishment of rates
which are "fair and reasonable" to both the Grantee
and its Subscribers and shall be generally defined
as to the minimum rates necessary to meet all
applicable costs of service, including fair return
on all invested capital, all assuming efficient
and economical management.
(f) In order for the Board to determine
whether proposed rate changes comport with the
criteria established in subsection (e) above, the
Grantee's petition for a rate increase shall
include the following financial reports which
shall reflect the operations of the Little Rock
system only:
(1) Balance Sheet.
(2) Income Statement.
Ih
(3) Cash Flow Statement.
(4) Statement of Sources and Applications of
Funds.
(S) Detailed Supporting Schedules of Expenses,
Income, Assets and other items as may be
required.
(6) Statement of Current and Projected
Subscribers and Penetration.
The Grantee's accounting records applicable to the
Little Rock System shall be available for inspection
by the City at all reasonable times. The City
shall have access to records of financial transactions
for the purpose of verifying burden rates or other
indirect costs prorated to the Little Rock operation.
The documents listed above shall include sufficient
detail and /or footnotes as may be necessary to
provide the City with the information needed to
make accurate determinations as to the financial
condition of the system. All financial statements
shall be certified as accurate by an officer of
Grantee.
(g) Any disagreement between the City and
the Grantee concerning interpretations and calcu-
lations of the financial and statistical informa-
tion provided by the Grantee may be submitted to a
court of competent jurisdicton.
(h) The Board reserves the right to review
the purchase price of any transfer or assignment
of the system, and any assignee to this Franchise
expressly agrees that any negotiated sale value
which the Board deems unreasonable will not be
considered in ;-he rate base for any subsequent
request for service increases. Reasonableness of
purchase price will be determined in accordance
with criteria listed in B(3)(e).
1 -7 -
9. Franchise Fee.
A. The Grantee shall pay to the City in consider-
ation for the granting of the Franchise to use the public
ways for the operation of a Cable Television System, subject
to approval by the FCC, not less than three percent (3%) of
its annual gross revenues during the period of its operation
under the franchise.
Following the issuance of a Franchise by the City, the
Grantee shall initiate license fee payments to the City at
the minimum rate of Twenty -five Thousand Dollars ($25,000)
per year. At such time as the Grantee begins full system
construction, this advance fee shall increase to Fifty
Thousand Dollars ($50,000) per year. These payments are to
be considered advances of payments due in later years and
will be credited in future years to those Franchise fees
which exceed One Hundred Thousand Dollars ($100,000) in a
year. Such advance Franchise fees shall not be recoverable
from the City in the event that the aggregate of future
Franchise fees based on Gross Annual Subscriber Revenues
collected on a license do not exceed the total amounts of
the advances.
B. The Grantee shall file with the City, within
thirty (30) days after the expiraton of each of the Grantee's
fiscal quarters, a financial statement clearly showing the
Gross Annual Revenues received by Grantee during the preceding
quarter. Payment of the quarterly portion of the Franchise
fee shall be payable to the City at the time such statement
is filed. The Grantee shall also file, within one hundred
twenty (120) days following the conclusion of the Grantee's
fiscal year, an annual report prepared and certified by the
Treasurer of the Grantee acceptable to the City, clearly
showing the yearly total Gross Revenues.
C. The City shall have the right to inspect the
Grantee's income records, the right of audit and the recompu-
tation of any amounts determined to be payable under this
ordinance, provided, however, that such audit shall take
place within twelve (12) months following the close of each
of the Grantee's fiscal years. Any additional amount due
the City as a result of the audit shall be paid within
thirty (30) days following written notice to the Grantee by
the City, which notice shall include a copy of the audit
report. The cost of said audit shall be borne by the Grantee
if it is properly determined that the Grantee's annual pay-
ment to the City for the preceding year is increased thereby
by more than five percent (5%).
D. In the event that any Franchise payment or
recomputed amount is not made on or before the applicable
dates heretofore specified, interest shall be charged from
such due date at the annual rate of ten percent (10 %).
E. In the event the Franchise is terminated
prior to its expiration date, and the City invokes its right
to purchase the Grantee's system, the Grantee shall file
with the City, within thirty (30) days of the date that
ownership and control passes to the City or its assignee, a
financial statement clearly showing the Gross Annual Revenues
received by Grantee since the end of the previous fiscal
quarter. The Grantee shall pay the Franchise fee due at the
time such statement is filed.
F. No acceptance of any payment shall be construed
as a release or as an accord and satisfaction of any claim
the City may have for further or additional sums payable
under this ordinance.
G. Nothing contained in this ordinance shall be
construed to exempt the Grantee from any tax, business
license tax, levy or assessment which is now or which may
hereafter be authorized by law.
H. The City reserves the right to increase both
the Franchise fee rate and the revenues on which such fee is
based so as to increase the Franchise payments in the event
that the current Federal Communications Commission limitations
19
as to the Franchise fee rate and the revenues on which such
fee may be levied are eliminated or changed, as a result of
superseding regulations or court action. Any change in
Franchise fee rate or the revenues on which such fee is
based shall be accomplished by amendment to this Franchise
and to any ordinance granting a Franchise hereunder, provided
that such amendments shall be preceded by a public hearing
affording due process.
I. The City reserves the right to require the
Grantee to collect any consumer tax that may be imposed on
Subscribers by the City.
10. Books and Records of the Grantee.
A. The Grantee shall maintain an office in the
City for so long as it continues to operate the System or
any portion thereof and shall designate such offices as the
place where all notices, directions, orders and requests may
be served or delivered under this ordinance. The City Manager
shall be notified of the location of such office or any
change thereof.
B. The Grantee shall keep complete and accurate
books of account and records of its business and operations
under and in connection with the ordinances and Franchise.
C. The City Manager or his authorized agent
shall have access to all books of account and records of the
Grantee for the purpose of ascertaining the correctness of
any and all reports and shall be given local access to all
other records upon reasonable request.
D. Any false entry in the books of account or
records of the Grantee or false statement in the reports to
the City Manager as to a material fact, knowingly made by
the Grantee, shall constitute the breach of a material
provision of the ordinance and Franchise.
11. Liability for Damages.
A. The Grantee shall pay and, by its acceptance
of this Franchise, the Grantee specifically agrees that it
Alm
will pay all damages and penalties which the City may legally
be required to pay as a result of granting this Franchise.
B. The Grantee shall pay and, by its acceptance
of this Franchise, the Grantee specifically agrees that it
will pay all expenses incurred by the City in defending
itself with regard to all damages and penalties mentioned in
paragraph A above. These expenses shall include all out -of-
pocket expenses, such as attorney fees, and shall also in-
clude the reasonable value of any services rendered by the
City Attorney or his assistants or any City Employee.
C. The Grantee shall file with the City Clerk
the insurance policies required by this section and evidence
of payment of required premiums prior to commencement of the
construction of the Cable Television System and thereafter
maintain in full force for the full term of the Franchise
and in effect at all times, at the expense of the Grantee, a
comprehensive liability insurance policy with the City of
Little Rock named as an insured, written by a company au-
thorized to do business in the State of Arkansas, in a form
approved by the City Attorney, protecting the City against
liability for loss, for personal injury and property damage
occasioned by the operation of the Cable Television System
by the Grantee in the following minimum amounts:
(1) $250,000 for property damage to any one
person.
(2) $500,000 for property damage in any one
accident.
(3) $500,000 for any personal injuries to
any one person.
(4) $1,000,000 for personal injuries in any
one accident.
(5) $1,000,000 for all other types of
liability.
Such insurance shall be kept in full force and effect by the
Grantee during the existence and until after the removal of
OMM
all poles, wires, cables, underground conduits, manholes and
other conductors and fixtures incident to the maintenance
and operation of the Cable Television System as defined in
this Franchise.
D. The Grantee shall obtain a performance bond
running to the City with good and sufficient surety approved
by the City Attorney in the sum of Two Hundred Fifty Thousand
Dollars ($250,000) conditioned upon the faithful performance
and discharge of the obligations imposed by the ordinance
and the Franchise awarded hereunder from the date thereof.
The amount of the performance bond will be reduced on an
annual basis.
12. Security Fund.
A. Within thirty (30) days after the acceptance
of this Franchise, the Grantee shall deposit with the City's
Director of Finance and maintain on deposit throughout the
term of the Franchise the sum of Fifteen Thousand Dollars
($15,000) in cash, or in lieu of cash an irrevocable letter
of credit in said amount issued by a local banking institution.
If the Grantee has made all required payments and shall have
complied with all provisions of this ordinance, the City's
Director of Finance shall be authorized to pay to the Grantee
any interest earned on the cash deposit required by this
Section on or before July 1 of each year in which this
Franchise is in effect.
B. Within thirty (30) days after notice to it
that any amount has been withdrawn from the security fund
deposited pursuant to Paragraph (A) of this section, the
Grantee shall pay to, or deposit with, the City's Director
of Finance a sum of money sufficient to restore such security
fund to the original amount of Fifteen Thousand Dollars
($15,000).
C. If the Grantee fails to pay to the City any
compensation within the time fixed herein, or fails after
ten (10) days' notice to pay to the City any taxes due and
- 22 -
unpaid, or fails to repay to the City within such ten (10)
days any damages, costs or expenses which the City shall be
compelled to pay by reason of any act or default of the
Grantee in connection with this ordinance or its Franchise,
or fails after three (3) days' notice by the City Manager of
such failure to comply with any provision of this ordinance
or its Franchise which the City Manager reasonably determines
can be remedied by an expenditure of the security, the City's
Director of Finance may immediately withdraw the amount thereof,
with interest, and any penalties, from the security fund. Upon
such withdrawal, the City's Director of Finance shall notify
the Grantee of the amount and date thereof.
D. The cash deposit and the performance bond
shall become the property of the City in the event that the
Franchise is canceled by reason of the default of the Grantee.
The cash deposit shall be retained by the City and returned
to the Grantee at the expiration of the Franchise provided
there is then no outstanding default on the part of the
Grantee.
E. The rights reserved to the City with respect
to the security fund are in addition to all other rights of
the City, whether reserved by this ordinance or authorized
by law, and no action, proceeding or exercise of a right
with respect to such security fund shall affect any other
right the City may have.
13. Transfer of Franchise.
A. The Franchise granted under this ordinance
shall be a privilege to be held in personal trust by the
Grantee. It shall not be assigned, transferred, sold or
disposed of, in whole or in part, by voluntary sale, merger,
consolidation or otherwise or by forced or involuntary sale,
without prior consent of the Board expressed by ordinance
and then on only such conditions as may therein be prescribed.
The City is hereby empowered to take legal or equitable
action to set aside, annul, revoke or cancel the Franchise,
- 23 -
or the Lransfer of the Franchise, if said transfer is not
made according to the procedures set forth in this ordinance.
B. Any sale, transfer or assignment shall be
made by a bill of sale or similar document, an executed copy
of which shall be filed with the City Manager within thirty
(30) days after such sale, transfer or assignment. The
Board shall not withhold its consent unreasonably, provided,
however, the proposed assignee agrees to comply with all the
provisions of this ordinance and the Franchise and must be
able to provide proof of financial responsibility as deter-
mined by the Board.
C. No such consent shall be required for a
transfer in trust, mortgage, or other instrument of hypothe-
cation, in whole or in part, to secure an indebtedness,
except that when such hypothecation shall exceed seventy -five
percent (75 %) of the fair market value of the property used
by the Grantee in the operation of its Cable Television
System. Prior consent of the Board, expressed by ordinance,
shall be required for such transfer and said consent shall
not be withheld unreasonably.
D. Prior written notice to the Board shall be
required where ownership or actual working control or more
than fifty percent (50 %) of the right of control of the
Grantee is acquired by a person or group of persons acting
in concert, none of whom already own or control fifty percent
(50 %) or more of such right of control, singularly or collec-
tively. By its acceptance of this Franchise, the Grantee
specifically grants and agrees that any such acquisition
occurring without prior notice to the Board shall constitute
a violation of this Franchise by the Grantee.
E. The Grantee shall promptly notify the City
Manager of any actual or proposed change in, or transfer of,
or acquisition by any other party of control of the Grantee.
Every change, transfer or acquisition of control of the
Grantee shall make the Franchise subject to cancellation
- 24 -
unless and until the Board shall have con: =nted thereto.
For the purpose of determining whether it shall consent to
such change, transfer or acquisition of control, the Board
may inquire into the qualifications of the prospective
controlling party, and the Grantee shall assist the Board in
any such inquiry. If the Board does not schedule a hearing
on the matter within sixty (60) days after notice of the
change or proposed change and the filing of a petition re-
questing its consent, it shall be deemed to have consented.
In the event that the Board adopts an ordinance denying its
consent and such change, transfer or acquisition of control
has been affected, the Board may cancel the Franchise unless
control of the Grantee is restored to its status prior to
the change, or to a status acceptable to the Board.
F. The consent of the Board to any sale, transfer,
lease, trust, mortgage or other instrument of hypothecation
shall not constitute a waiver or release of any of the
rights of the City under this ordinance and the Franchise.
14. Foreclosure.
Upon the foreclosure or other judicial sale of all
or a substantial part of the System or upon the termination
of any lease covering all or a substantial part of the System,
the Grantee shall notify the City Manager of such fact, and
such notification shall be treated as a notification that a
change in control of the Grantee has taken place, and the
provisions of Section 13 hereof, governing the consent of
the City to such change in control of the Grantee shall
apply.
15. Receivership.
The City shall have the right to cancel this Franchise
one hundred twenty (120) days after the appointment of a
receiver, or trustee, to take over and conduct the business
of the Grantee, whether in receivership, reorganization,
bankruptcy, or other action or proceeding, unless such
receivership or trusteeship shall have been vacated prior to
- 25 -
the expiration of said one hundred twenty (120) days, or
unless:
A. Within one hundred twenty (120) days after
his election or appointment, such receiver or trustee
shall have fully complied with all the provisions of this
ordinance and remedied all defaults thereunder; and
B. Such receiver or trustee, within said one
hundred twenty (120) days shall have executed an agreement,
consented to by the Board and duly approved by the Court
having jurisdiction in the premises, whereby such receiver
or trustee assumes and agrees to be bound by each and every
provision of this ordinance and the Franchise granted to the
original Grantee.
16. Review and Renewal.
A. The Board shall not hold any meeting involving
the review, renewal, cancellation or expiration of the
Grantee's Franchise unless the City Manager has (1) advised
the Grantee in writing, at least thirty (30) days prior to
such meeting, as to its time, place and purpose, and (2)
published a notice, at least once, ten (10) days before the
meeting in a newspaper of general circulation within the
City.
B. It shall be the policy of the City to amend
this Franchise upon application of the Grantee, when necessary
to enable the Grantee to take advantage of advancements in
the state -of- the -art which will afford it an opportunity to
more effectively, efficiently, or economically serve its
Subscribers; provided, however, that this section shall not
be construed to require the City to make any amendment.
Further, every three (3) years during the term of the Franchise,
the Board shall hold a public hearing, the purpose of which
will be to consider System performance, System design modifi-
cations, and the possible need for reasonable and appropriate
modifications in the Franchise of a nature that would not
result in effectively terminating same under the then existing
- 26 -
Federal Communications Commission Rules for Cable Television.
This Franchise may be amended at any time in order to conform
with the applicable Federal law and FCC rulings after notice
and public hearing.
C. The Board shall hold a public hearing prior
to the Franchise expiration date, the purpose of which will
be to review the Grantee's performance during the entire
term of its Franchise, to consider the adequacy of the
Franchise from the standpoint of the City, the Grantee and
the Federal Communications Commission Rules for Cable Tele-
vision, and to determine the advisability of renewing the
Grantee's franchise for a period of ten (10) years.
D. The City shall hear any interested persons
during said meeting and shall determine whether or not the
Grantee did reasonably comply with the terms and conditions
imposed by this ordinance and the Franchise.
E. If the City determines that the Grantee's
performance has been satisfactory in accordance with the
terms and conditions imposed by this ordinance and the
Franchise, the Board shall renew the Grantee's Franchise for
a period of ten (10) years in which event the City shall
modify this ordinance and the Franchise to bring them into
compliance with the FCC Rules for Cable Television. The
City shall have the right to recoup from the Grantee those
direct expenses above normal administrative costs incurred
pursuant to renewal of the Franchise.
F. If the City determines that the performance
of the Grantee has not been satisfactory under the terms and
conditions imposed by this ordinance and the Franchise, it
shall have the right not to renew the Franchise in which
event the City shall, on the expiration date of the Franchise,
either purchase the assets of the Grantee's System at its
then fair market value, or select a new Grantee, after a
full public proceeding, and, at the option of the City, such
new Grantee may be required to take the assets at fair
market value.
- 27 -
17. Cancellation and Expiration.
A. The City shall have the right to cancel the
Franchise if the Grantee fails to comply with any material
and substantial provision of this ordinance, or amendments
thereto, or of the grant of the Franchise or any reasonable
order, direction or permit issued by any City Department or
agency pursuant to such material and substantial provision,
or any rule or regulation promulgated by the City which is
reasonable in light of, and consistent with, any provision
of this ordinance or the Franchise, or if the Grantee persis
tently fails to comply with any provision of either, or any
reasonable order, direction or permit. Cancellation shall
be by ordinance of the Board duly passed in accordance with
the following procedures:
(1) The City Manager shall notify the Grantee of
the alleged failure or persistent failure of compliance
and give the Grantee a reasonable opportunity to correct
such failure or persistent failure or to present facts
and argument in refutation of the alleged failure or
persistent failure.
(2) If the City Manager then concludes that there
is a basis for cancellation of the Franchise pursuant
to paragraph A of this section, he shall notify the
Grantee thereof.
(3) If within reasonable time the Grantee does
not remedy and /or put an end to the alleged failure or
persistent failure, the Board, after a public hearing
on notice, may cancel the Franchise if it determines
that such action is warranted under paragraph A of this
section.
B. If for ten (10) consecutive days, the System
or any part thereof, is inoperative, or if the same is
inoperative for thirty (30) days out of any consecutive
twelve (12) months, the Board may cancel the Franchise.
C. The Grantee shall not be declared in default
or be subject to any sanction under any provision of this
ordinance or the Franchise in any case in which the perfor-
mance of any such provision is prevented for reasons beyond
its control.
D. If all or part of the streets within the City
are closed or discontinued as provided by statute, then the
Franchise, and all rights and privileges hereunder with
respect to said streets or any part thereof so closed or
discontinued, shall cease and terminate upon the date of the
passage of the ordinance closing and discontinuing such
streets and the Grantee shall not be entitled to damages
from the City due to the closing or discontinuance of such
streets, or for injury to any part of the System in the
streets or for the removal or relocation of the same.
E. If the System is taken or condemned pursuant
to law, the Franchise shall, at the option of the Board,
cease and terminate on the date of the vesting of title
pursuant to such taking or condemnation, and any award to
the Grantee in connection with such taking or condemnation
shall not include any valuation based on the Franchise.
F. Upon cancellation or expiration of the Franchise,
the City shall have the right to purchase the System, and
the Board may direct the Grantee to continue or to cease
operation of the System.
G. If the Franchise is cancelled by the Board by
reason of the Grantee's default, the System shall, at the
election of the City, become the property of the City at a
cost not to exceed its then Fair Market Value according to
generally accepted accounting principles, with a reduction
for any damages incurred by the City in connection with such
cancellation. Damages incurred by the City shall include,
without limitation, any payments made by the City pursuant
to an ordinance by the Board authorizing or directing another
agency or person to operate the System for a temporary
period until a Franchise therefor is granted, or until the
City takes possession of the System in accordance with
provisions of this ordinance or other applicable law.
- 29 -
H. If the Franchise terminates by expiration of
its term, the purchase price to the City for the System
shall be at its then Fair Market Value. Beginning within
two (2) years prior to expiration and whether or not the
City has elected to purchase the System, either the City or
the Grantee may demand a determination of Fair Market Value,
the determination to be made as of the date the request is
made. The determination shall be subject to correction or
adjustment to reflect the Fair Market Value as of the date
of expiration, to be paid by the City if it elects to purchase
the System. Such Fair Market Value shall be the Fair Market
Value of all tangible and intangible assets forming a part
of the System. If the City, or successor franchisee, does
not purchase the System, the Grantee shall remove that part
of the System located in the streets and restore the streets
to a condition satisfactory to the City.
18. Transfer of Ownership; Transition Period.
A. Continuity of Service Mandatory. It shall be
the right of all Subscribers to receive all available services
insofar as their financial and other obligations to the
Grantee are honored. In the event that the Grantee elects
to overbuild, rebuild, modify, or sell the System, or the
City terminates or fails to renew this Franchise, or the
City elects to purchase the System, the Grantee shall do
everything in its power to ensure that all Subscribers
receive continuous, uninterrupted service regardless of
circumstances. In the event of purchase by the City, or a
change of grantee, the current Grantee shall cooperate with
the City to operate the System for a temporary period in
maintaining continuity of service to all Subscribers.
B. Upon payment of the purchase price, the
Grantee shall immediately transfer to the City all contracts,
leases, licenses, permits and any other rights necessary to
maintain continuity of service to the public and transfer
possession and title to all facilities and property, real
- 30 -
and personal, related to its System free from any and all
liens an:, encumbrances not agreed to be assumed by the city
in lieu of some
Portion of the purchase price. The Grantee
shall make it a condition of each contract entered into by
it, with reference to its operations under this ordinance
and Franchise, that the contract shall be subject to the
exercise of its option by the City and that the City shall
have the right to succeed to all privileges and obligations
thereof upon the exercise of such option.
C. The City shall have the right and power to
assign its purchase rights to a successor Grantee approved
by the City in a manner not inconsistent with the provisions
of this ordinance.
D. Until such time as the Grantee transfers to
the City or to a new Grantee possession and title to all
assets, real and personal, related to its System, the Grantee
shall, as trustee for its successor in interest, continue to
operate the System under the terms and conditions of this
ordinance and the Franchise and to provide the regular Sub-
scriber service and any and all of the services that may
be provided at that time. During such interim period, the
Grantee shall not sell any of the System assets nor shall
the Grantee make any physical, material, administrative or
operational change that would tend to (1) degrade the quality
of service to the Subscribers, (2) decrease income, or (3)
materially increase expenses without the express permission,
in writing, of the City or its assignee. The City shall be
permitted to seek legal and equitable relief to enforce the
provisions of this section.
E. For its management services during this
interim period, the Grantee shall be entitled to receive as
compensation the Net Profit, as defined herein, generated
during the period between the date the Grantee received
written notice from the City of its intent to purchase the
Grantee's System or the expiration date of the Franchise,
- 31 -
whichever is earlier, and the payment of the purchase price.
Such management services shall not be continued without
Grantee's consent for more than twelve (12) months. However,
if the Board determines that the Grantee is responsible for
any delay in transfer of ownership and control, the Grantee
shall continue to operate the System without compensation
for its services until the sales agreement is executed and
ownership and control passes to the City, or its assignee.
In addition, the City shall also have the further right to
(1) forthwith terminate Grantee's Franchise and have the
System removed, or (2) to purchase the assets of the Grantee's
System.
F. In the event the City elects to purchase the
Grantee's System and the Fair Market Value cannot be agreed
upon, the final price shall be determined by the Circuit
Court of Pulaski County, Arkansas.
19. Complaint Procedure.
A. The Grantee shall establish a Subscriber
complaint procedure and designate a local official for
administering the complaint procedure at its local office in
the City. Notice of the complaint procedure shall be given
to each Subscriber.
B. The Grantee shall respond to all service
calls within forty -eight (48) hours and correct malfunctions
as promptly as possible, but in all cases not longer than
seventy -two (72) hours after notification thereof. For this
purpose, the Grantee shall maintain an office adequately
staffed and trained to provide prompt and efficient service
to the Subscribers.
C. In cases where requests for service have been
ignored or unfilled for whatever reason, the City Manager
shall have the power to require the Grantee to provide
service in response tc all reasonable requests as the City
Manager may determine.
D. When there have been similar complaints nude,
or where there exists other evidence which, in the judgment
- 32 -
of the City, casts doubt on the reliability of quality of
cable service, the City shall have the right and authority
to compel the Grantee to test, analyze and report on the
performance of the System. Such test or tests shall be made,
and the reports of such test or tests shall be delivered
to the City no later than fourteen (14) days after the City
formally notifies the Grantee.
The City's right under this provision shall be limited
to requiring tests, analyses and reports covering specific
subjects and characteristics based on said complaints or
other evidence when and under such circumstances as the City
has reasonable grounds to believe that the complaints or
other evidence require that tests be performed to protect
the public against substandard cable service.
Said tests and analyses shall be supervised by a regis-
tered professional engineer, not on the permanent staff of
the Grantee and selected jointly by the City and the Grantee.
The aforesaid engineer shall sign all records of special
tests and forward to the City such records with a report
interpreting the results of the test and recommending actions
to be taken by the City.
20. Penalties.
A. For any violation of material provisions of
this ordinance, the penalties shall be chargeable to the
Security Fund as follows:
(1) For failure to comply with the provisions
of Section 6 hereof ... The City may at its sole
option apply the following in connection with
delays in system construction:
(a) Reduction in the duration of the
franchise on a month - for -month basis for each
month of delay within the franchisee's control
exceeding three (3) months. Such reduction
in terms shall not accumulate beyond a total
of two (2) years.
- 33 -
(b) Forfeiture of performance bonds for
delays exceeding one (1) year.
(2) For failure to provide data and reports
as requested by the City Manager or the Board ....
$100 per day.
(3) For failure to restore the cash deposit
as required in Section 12(B) within the specified
thirty (30) days, the entire cash deposit remaining
shall be forfeited.
B. The Grantee may appeal any penalty which it
considers unreasonable as provided for in Section 22 hereof.
21. Hiring and Employment Practices.
The Grantee shall not refuse to hire or employ,
nor bar or discharge from employment, nor discriminate
against any person in compensation or in terms, conditions
or privileges of employment because of age, race, creed,
color, national origin or sex, and Grantee shall have an
approved Affirmative Action Plan.
22. Appeals.
In the event the Grantee questions the reasonable-
ness of any order, requirement, decision, or other action
taken by the City Manager or shall be of the opinion that
the City Manager lacks authority to take such action, the
Grantee shall be allowed to appeal the order, requirement,
decision or other action to the Board of Directors. The
notice of objection and request for an appeal shall be made
in writing to the City Clerk within two (2) weeks of the
objectionable order, requirement, decision or other action.
23. Sundry Provisions.
A. Every direction, notice or order to be served
upon the Grantee shall be delivered or sent by registered
mail to its office in the City as required by Section 10(A)
hereof. Every notice served upon the City shall be delivered
or sent by registered mail, to the City Manager, City Hall,
Little Rock, Arkansas 72201.
- 34 -
B. All provisions of this ordinance shall apply
to the Grantee, its successors and assigns, as such may be
approved by the Board, in accordance with the ordinance.
C. The rights granted by this ordinance are
subject to all Franchises and permits heretofore or hereafter
granted by the Board to use the streets of the City by other
public utility or public service corporations. It is not
intended by the grant of this Franchise to abridge the exer-
cise of the police power heretofore or hereafter granted
to the City by the laws of the State of Arkansas. The grant
of this Franchise is subject to all ordinances and resolutions
of the Board of Directors of the City of Little Rock as the
same now exist or may be hereafter amended, revised or
codified, in the lawful exercise of any other power granted
to the City by the laws of this State.
D. Specific mention of the materiality of any of
the provisions herein is not intended to be exclusive of any
others for the purpose of determining whether any failure of
compliance hereunder is material and substantial.
E. If any particular section of this ordinance,
or the particular application thereof, shall be held invalid,
the remaining provisions, and their application, shall not
be affected thereby.
F. Grantee's Application Incorporated. The
Grantee shall provide all services specifically set forth in
its application to provide cable service to the City of
Little Rock, Arkansas, and by its application is thereby
incorporated by reference and made a part of the Franchise.
In the event of a conflict between such proposals and the
provisions of this ordinance, that provision which provides
for the greatest benefit to the City, in the opinion of the
Board, shall prevail.
G. The Grantee shall assume the cost of publication
of this ordinance and Franchise as such publication is
required by law and such is payable upon the Grantee's
filing of acceptance.
- 35 -
H. The Grantee to whom the Board grants this
nonexclusive Franchise, shall, in addition to all other
fees, pay to the City at the time the Grantee files its
acceptance of the Franchise an amount not to exceed Ten
Thousand Dollars ($10,000). Such payment shall be nonre-
fundable and shall be used to offset any direct costs
incurred by the City in granting this Franchise not de-
frayed by fees submitted with the bids.
I. Whenever this ordinance or the Franchise
sets forth any time for any act to be performed by or on
behalf of the Grantee, such time shall be deemed of the
essence and the. Grantee's failure to perform within the
time allotted shall, in all cases, be sufficient grounds
for the City to invoke the remedies available under the
terms and conditions of this ordinance and the Franchise.
24. Theft of Service Prohibited.
It shall be unlawful for any person or entity to
make unauthorized connection whether physically, electri-
cally, accoustically, inductively or otherwise to any part
of a licensed Cable Television System within the City, for
the purpose of enabling receipt of video, audio, digital
or other signals or information without payment to the
City.
IN WITNESS WHEREOF hereunto by its City Manager and
its corporate seal to be hereto affixed and attested by
its City Clerk and the Grantee has caused its name to be
subscribed hereunto by its President as of the day and
year first above written.
* * * * * * * * * * * *
- 36 -
SECTION 2. This ordinance shall be in force and effect
upon its passage.
PASSED: Monday, February 11, 1980.
ATTEST: i~ (��
City Clerk
APPROVED:
Mayor
, -7
Carlton E. McMullin Arno W. Mueller fo
City Manager Riverside Cable TV, Inc.
CONFIRMED AND EFFECTIVE: Tuesday, February 19, 1980.
- 37 -
STATE OF FLORIDA) AFFIDAVIT OF UNCONDITIONAL ACCEPTANCE
)ss. OF THE LITTLE ROCK CABLE TELEVISION
COUNTY OF DADE ) FRANCHISE BY RIVERSIDE CABLE T.V., INC.
I, Arno W. Mueller, President of Riverside Cable,
T.V., Inc., Little Rock, Arkansas, state that:
Riverside Cable T.V., Inc. hereby unconditionally
accepts the Little Rock cable television franchise from the
city of Little Rock, Arkansas and promises to faithfully
comply with and abide by all of its provisions, terms and
conditions as set out in Little Rock City Ordinance No. 13, 790.
ARNO W. MUELLER
PRESIDENT
RIVERSIDE CABLE T.V., INC.
SUBSCRIBED AND SWORN to me, a Notary Public, on
this � day of March, 1980.
My commission expires:
UujjMgmU► ' SNj TYaH39 AM1 COG"=
tg& f► -YvwSi j&GNQiSSlWW0' >A►K
37bb1 lb V0110IJ 90 31VIS 7111114 AIT064M
( S E AL )
Notary Public
FILED
MAR 31 1980
JANE CZECH
CITY CLERK