APPENDIX B – FRANCHISESAPPENDIX B – FRANCHISES\Franchise Ordinance No. 74-A

AN ORDINANCE GRANTING K-1 CABLESYSTEMS, INC, TO THE NON-EXCLUSIVE RIGHT TO ERECT, MAINTAIN AND OPERATE IN, UNDER, OVER, ALONG, ACROSS THE STREETS, LANES, AVENUES, SIDEWALKS; ALLEYS, BRIDGES, HIGHWAYS, EASEMENTS DEDICATED FOR COMPATIBLE USES AND OTHER PUBLIC PLACES IN THE CITY HEREOF AND THE SUBSEQUENT ADDITIONS THERETO, TOWERS, POLES, LINES, CABLES, WIRES AND OTHER APPARATUS FOR THE PURPOSE OF TRANSMISSION AND DISTRIBUTION BY CABLE OF TELEVISION SIGNALS TO ENABLE SALE OF ITS COMMUNITY TELEVISION ANTENNA SERVICE TO INHABITANTS OF SAID TOWN, AND OTHER VARIOUS PURPOSES, FOR A PERIOD OF TWENTY (20) YEARS FROM THE EFFECTIVE DATE OF THIS ORDINANCE.

BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LANE, KS

SECTION I - TITLE

This Ordinance shall be known and may be cited as the “Lane, KS. Community Antenna Television Ordinance.”

SECTION II - DEFINITIONS

For the purposes of this Ordinance, the following terms, phrases, words, and their derivations shall have the meaning given herein. When not consistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word “shall” is always mandatory and not merely directory

(1)        “Cable Service” means the transmission of telecommunications signals, including the retransmission of broadcast and satellite received signals, and the origination of the programming by the Grantee.

(2)        “Town” is the town of Lane, KS

(3)        “Council” i s the Town Council of Lane, KS

(4)        “Cable Television System” or “Cable System” is a system utilizing certain electronic and other components which deliver to subscribing members of the public various communications services.

(5)        “Cable Television Reception Service” means the delivery by the Grantee to television receivers (or any other suitable type of electronic terminal or receiver of the electronic signals and other communications services carried over said system.

(6)        “FCC” shall mean Federal Communications Commission.

(7)        “Person” is any person, firm, partnership, association, corporation or organization of any kind and any other legally recognized entity.

(8)        “Grantee” is K-1 Cablesystems, Inc. of Kansas or anyone who succeeds K-1 Cablesystems, Inc. of Kansas in accordance with the provision of this Ordinance.

(9)        “Subscribers” are those persons contracting to receive cable television reception services furnished under this Ordinance by Grantee.

SECTION III - GRANT OF NON-EXCLUSIVE AUTHORITY

(1)        There is hereby granted by the Town to the Grantee, and to its successors, assigns or designees, the non-exclusive right to erect, maintain and operate in, under, over, along, across and upon the present and future streets, lanes, avenues, sidewalks, alleys, bridges, highways, easements dedicated for compatible uses and other public places in the Town of Lane, KS, and subsequent additions thereto, towers, poles, lines, cables, wires, manholes and all other fixtures and equipment necessary for the maintenance and operation in the Town of a cable television system, for the purpose of transmission and distribution of audio, visual, electronic and electric impulses in order to furnish television and radio programs and various other communications services by what is commonly called a Community Antenna Television System, for a period of twenty (20) years, commencing from and after the effective date of this Ordinance.

(2)        The right to use and occupy said streets, alleys, public ways and places for the purposes herein set forth shall not be exclusive.

SECTION IV - COMPLIANCE WITH APPLICABLE LAWS AND ORDINANCES

The Grantee shall, during the term hereof, except in those areas which have been preempted by the Cable Communications, Policy Act of 1984, or by any other statute or rule, or which are regulated by the Federal Communications Commission, be subject to all lawful exercise of the regulating and police powers of the Town.

SECTION V - TERRITORIAL AREA INVOLVED

This Ordinance relates to the present territorial limits of the Town and to any area annexed thereto during the term of this Ordinance, Grantee shall not be required to service resident of newly annexed areas of the Town that are beyond four hundred feet (400’) from existing distribution lines except upon payment by such residents of the capital costs incurred by the Grantee in bringing service to such residents. Grantee may, but shall not be required to, serve areas or individual homes adjoining, but outside the Town limits, that may be served from its existing facilities. Grantee may negotiate directly with such customers the amount to be charged for the bringing of the service to the customer.

SECTION VI - LIABILITY AND INDEMNIFICATION

Grantee shall, at all times, keep in effect the following types of insurance coverage:

(a)        Workmen’s compensation upon its employees engaged in any manner in the installation of servicing of its plant and equipment within the Kansas statutes.

(b)        Property Damage Liability insurance to the extent of $50,000.00 as to each occurrence and personal injury liability insurance to the extent of $100,000.00 as to each occurrence and Automobile bodily injury liability insurance of $50,000.00 as to each occurrence and property damage liability of $100,000.00 for each occurrence.

Grantee shall indemnify, protect, and save harmless the Town from and against losses and physical damage to property and bodily injury of death to persons, including payments made under any Workman’s Compensation law which may arise out of the erection, maintenance, presence, use of removal of said attachments or poles within the Town, or by any act of Grantee, its agents or employees. Grantee shall carry insurance in the above described claims, demands, actions, judgments, costs, expenses and liabilities which may arise or result, directly or indirectly, from or by reason of such loss, injury or damage. Grantee shall also carry such insurance as it deems necessary to protect it from all claims under the Workmen’s Compensation law as in effect that may be applicable to Grantee. All insurance required shall be and remain in full force and effect for the entire life of the rights granted hereunder. Insurance certificates evidencing such insurance coverage shall be deposited with and kept on file by the Town.

These damages or penalties shall include, but shall not be limited to, damages arising out of copyright, infringements, and all other damages arising out of the installation, operation, or maintenance of the Cable Television System authorized herein, whether or not any act of omission complained of is authorized, allowed or prohibited by this Ordinance.

SECTION VII - GENERAL SYSTEM SPECIFICATIONS

The facilities used by the Grantee shall have a minimum capacity of 12 channels.

SECTION VIII - TECHNICAL STANDARD

Grantee shall be governed by technical standards as may be established by the FCC from time to time.

SECTION IX - OPERATION AND MAINTENANCE OF SYSTEM

(1)        The Grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest possible time.

(2)        All non-emergency service requests and complaints should be responded to within 7 days of receipt.

SECTION X - EMERGENCY USE OF FACILITIES

In the case of any emergency or disaster, the Grantee shall, upon request of the Town Council, make available its facilities to the Town for emergency use during the emergency or disaster. If the Town wishes to operate a Civil Emergency Alert System on a plan that is mutually acceptable to the Town and Grantee and provides Grantee with the necessary equipment for such system, Grantee will permit the system to be used on the cable system.

SECTION XI - SAFETY REQUIREMENTS

The Grantee shall, at all times, employ ordinary care and shall use and maintain commonly accepted methods and devices for preventing failures and accidents which ate likely to cause damages, injuries or nuisances to the public.

SECTION XII - LIMITATIONS ON RIGHTS GRANTED

(1)        All transmission and distribution structures, lines and equipment erected by the Grantee within the Town shall be so located as to cause minimum interference with the proper use of streets, alleys and other public ways and places, and to cause minimum interference with the rights and reasonable convenience of property owners who adjoin any of the said streets, alleys or other public ways and places, and said poles or towers shall be removed by Grantee whenever the City Public Works Superintendent or Engineer reasonably finds that the same restrict or obstruct the operation or location of any future streets or public places in the Town of Lane, KS

(2)        Construction and maintenance of the transmission distribution system shall be in accordance with the provisions of the National Electrical Safety Code, the National Electrical Code, and such applicable Ordinances and regulations of the Town of Lane, KS, affecting electrical installation, which may be presently in effect, or changed by future Ordinances.

(3)        The Grantee shall have the authority to trim trees upon the overhanging streets, alleys, sidewalks and public ways and places of the Town so as to prevent the branches of such trees from coming in contact with the wires and cables of the Grantee.

SECTION XIII - OWNERSHIP AND REMOVAL OF FACILITIES

All cable and passive equipment for cable television reception service installed by Grantee at a subscriber’s location shall remain the property of Grantee and Grantee shall have the right to remove said cable and equipment. Upon termination of its above ground facilities, said equipment may be removed from the premises of said subscriber upon his request.

SECTION XIV - TRANSFER OF ORDINANCE

The Grantee may assign this Ordinance to another person without prior approval of the Town Council.

SECTION XV - DURATION AND RENEWAL OF ORDINANCE

The rights granted to Grantee herein shall, except as provide in this Section, terminate twenty (20) years from the effective date of this Ordinance which Ordinance shall be subject to renewal pursuant to the provisions of the Cable Communications Policy Act of 1984 applicable to new ordinances that are in the nature of a franchise. Pending final completion of renewal proceedings, the Ordinance shall remain in effect even if the original twenty (20) year term has expired. If this Ordinance is not renewed or if it is revoked for cause by the Town, the transfer of Grantee’s system shall be governed by Section 627 of the Cable Communications Policy Act of 1984. Further, if at any time actual subscriber penetration falls below 65 percent of the total homes passed by the cable system, K-1 Cablesystems, Inc. reserves the option to:

(a)        Allow the Town to pay for the shortfall in subscriber revenues; or

(b)        Withdraw the cable service.

SECTION XVI - MODIFICATIONS OF OBLIGATIONS

In addition to any other remedies provided by law or regulations Grantee’s obligations under this Ordinance may be modified, at its request, in accordance with Section 625 of Cable Communications Policy Act of 1984 as it now exists, or as hereafter amended.

SECTION XVII - SEVERABILITY

If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, or is superseded or preempted by Federal Communications Commission regulations, such portion shall be deemed a separate, district and independent provision and such holding shall not affect the validity of the remaining portions thereof.

SECTION XVIII - ACCEPTANCE

This ordinance is subject to sole acceptance by K-1 Cablesystem Inc.

SECTION XIX - MISCELLANEOUS

During the processing of this Ordinance, any legal expenses incurred by either party remain the obligation of the respective party that incurred them.

(7/13/1987)