HomeMy WebLinkAboutOrdinances - O-71-49 - 09/07/1971 - GRANT FRANCHISE FOR CABLELOOZE " 'NE
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AN ORDINANCE GRANTING TO VUE-SONICS, INC., AN ILLINOIS
CORPMATION, ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIV
FRANCHISE OR PERMIT TO ERECT, MAINTAIN AND OPERATE
TRANSMISSION AND DISTRIB _TION FACILITIES IN, UNDER, OVER,
ALONG, ACROSS AND UPON HE STREETS, LANES, AVENUES,
ALLEYS, BRIDGES, HIGHWAYS AND OTHER PUBLIC PLACES IN
THE CITY OF McHENRY, F0=_ THE PURPOSE OF TRANSMISSION
AND DISTRIBUTION BY CABL OF COMMUNICATIONS AND
TELEVISION, RADIO AND ML:SIC IMPULSES FOR SALE TO THE
INHABITANTS OF SAID CITY OR OTHER PURPOSES
BE IT ORDAINED by the City Council of the City of McHenry
j! as follows:
SECTION 1: Franchise Ordinance Requirements. No
community antenna television systerr- or cable communications system
shall be erected, maintained or oper_ted in the City of McHenry without
the passage ®f a franchise ordinance -:-ranting the same.
SECTION 2: DefinitioL=. As used in this franchise, the
following terms, phrases, words anc their derivations shall have the
meaning given herein. When not incccsistent with the context, words
used in the present tense include the future, words in the plural number
i, include the singular number, and wor-s in the singular number include
is the plural number. Unless it shall be apparent from the context that they
have a different meaning, the f-llowiz words and phrases shall have the
meaning stated in this section, that i_:
City: The City of McHenry, State of Illinois.
Council; The Council of Alderr-_en of the City.
Grantee: The person, firm, or corporation to whom this franchise
is awarded and granted and an)- person, firm or corporation to
which it may hereafter be lawfu-ay transferred.
Highway Any public highway, -oad, street, lane, alley, court,
sideway, parkway, easement, or other public place, including the
area above or below the same, which now exists ar may hereafter
exist within the City.
Cable Amtenna Television System or Cable Communications System:
Herein referred to as the Syste=, shall consist of antennas, coaxial
cables. wave guides, conductor=, and all other equipment and
facilities for providing televisics, radio, or other services by cable.
Subscribers: Any person, firr._._, corporation, or other entity, within
the corporate limits of the City of McHenry as now established, and
as may be established in the fur --re, receiving the communicated
data or television, radio or mu -sic impulses transmitted by the
Grantee over the cable.
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Total Gross Operating Revenues: Any and all compensation and
other consideration in any form paid by a subscriber and received
by the Grantee arising from the sale of its regular monthly service
to its subscribers shall be considered in computing said sum, not
including, however, any sales, service, rent, occupational or
other excise tax to the extent such taxes are charged separately in
addition to the regular monthly service charge and are remitted by
Grantee to the taxing authority.
SECTION 3: Franchise Grant. The right, privilege and
franchise is granted to Grantee, its successors and assigns, and such of
its installation service and supply agents and contractors as it may from
time to time designate, to erect, maintain and operate, and to solicit and
make a charge to subscribers for its service, a System, together with all
appurtenances necessary or convenient for the operation thereof, over,
under, upon, across and along, and to and from, all highways within the
City.
This franchise is granted under the terms and conditions
herein set forth, and Grantee shall have the exclusive and unrestricted
right of acceptance hereof by filing with the City Clerk within 15 days
after passage of this ordinance, a written acceptance hereof, which shall
be its agreement to abide by the terms and conditions of this franchise.
SECTION 4: Term. This franchise grant shall continue
in force and effect for a term of twenty years from the effective date. At
the expiration of said twenty-year term, and any subsequent five-year
extension term, this franchise grant shall automatically be extended for a
term of five years, unless notice of termination shall be given by either
the Grantee or the City to the other, at least one year prior to the date of
expiration of the then current term.
SECTION 5: General Limitations of Grant.
(a) No privilege or exemption is granted or conferred by
this franchise except those specifically prescribed herein.
(b) Time is of the essence of this franchise. The Grantee
shall not be relieved of its obligation to comply promptly with any
of its provisions by any failure of the City to enforce prompt
compliance.
SECTION 6: Construction.
(a) The Grantee's transmission and distribution system
poles, wires and appurtenances shall be located, erected and
maintained so as not to endanger or interfere with the lives of
persons or to interfere with any improvements the City may deem
proper to make or to hinder unnecessarily or obstruct the free use
of the streets, alleys, bridges or other public property.
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(b) The erection of any poles to accomplish the distribution
system herein contemplated shall be first approved in writing by
the City Engineer. All plans for construction shall be submitted
in duplicate to the City Engineer showing the location of all poles,
lines and facilities. These plans shall be kept up to date, and one
complete set thereof shall be retained in the office of the City
Engineer. It is the essence of this agreement that the City does
not wish the erection of any pole, or poles, in addition to those
which are already in existence within the City. It is the under-
standing of the City that underground construction will be utilized
whenever and wherever possible, and the only erection of poles
which will be permitted are in such locations where poles already
exist and where an addition to such pole system is essential to the
efficient installation of the System.
(c) In the maintenance and operation of its transmission
and distribution system in the streets, alleys and other public
places and in the course of any new construction or addition to its
facilities, the Company shall proceed so as to cause the least
possible inconvenience to the general public. All excavations shall
be properly guarded and protected and shall be replaced, and the
surface restored in a good condition promptly after the completion
of such work. The Company shall at all times comply with any and
all rules and regulations which the City has made or may make
applying to the public generally with reference to the removal or
replacement of pavement and to excavations in the streets and other
public places.
SECTION 7: Indemnification and Insurance. Grantee agree!
to indemnify and save the City harmless from all loss sustained because of
any suit, judgment, execution, claim, or demand whatsoever, resulting
from negligence on the part of the Grantee in the construction, operation
or maintenance of its System in the City. The City shall notify the
Company within ten days after the presentation of any claim or demand,
either by suit or otherwise, made against the City on account of any
negligence as aforesaid on the part of the Grantee. The Grantee shall
furnish the City as herein stated at its own expense, a general compre-
hensive liability insurance policy, in protection of City, its boards, com-
missions, officers, agents and employees, in a company authorized to do
business in the State of Illinois, protecting the City and said persons
against liability for loss or damages for personal injury, death and
property damage occasioned by the operations of the Grantee under this
franchise, with minimum liability limits of $200, 000. 00 for personal in-
jury or death of any one person, and $500, 000. 00 for personal injury or
death of two or more persons in any one occurrence, and $100, 000. 00 for
damage to property to any one person and $200, 000. 00 for damages to
property to two or more persons resulting from any one occurrence.
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The policy mentioned in the foregoing paragraph shall:
(a) Name the City as an insured.
(b) Contain a provision that a written notice of any can-
cellation or reduction in coverage of said policy shall be delivered
to the City ten days in advance of the effective date thereof.
(c) Be filed with the City in the form of a certificate of
insurance.
SECTION 8: Reasonable Regulations. The Company shall
have the right to prescribe reasonable service rules and regulations for
the conduct of its business not inconsistent with the provisions of this
Ordinance, and a copy of such service rules and regulations shall be kept
on file at all times with the City Clerk.
SECTION 9: Rates. The Company shall, at all times, be
entitled to charge rates that are fair, reasonable and just, provided, how-
ever, that its initial rates shall not exceed the following:
$5. 95 per month for service
$1. 00 per month for each additional receiver connection
upon the same premises
$20. 00 installation
No charge: Disconnection
$5.00 reconnection
Grantee may increase the above rates by filing with the City a proposed
rate schedule setting forth the proposed rate increases. Said proposed
rate increases shall become effective within sixty days of the date of filing,
provided, however, such increased rates shall not become effective in the
event the City disapproves said proposed rates within said sixty-day
period. In the event the City shall disapprove, the question of increase of
rates shall be submitted to arbitration pursuant to Chapter 10 of the
Illinois Revised Statutes.
SECTION 10: Standards of Signals. The System will re-
ceive and process designated VHF, UHF broadcast TV signals and certain
TV signals relayed via microwave and will deliver these signals to sub-
scribers on VHF channels from 2 through 13 to any receiver connected to
the System, except as limited by local transmission now and in the future.
The System shall deliver all NTSC color and monochrome signals to
standard EIA television receivers and FM signals up to 108 mcs. to all
standard Fly receivers. The signals shall be delivered to individual re-
ceivers without noticeable degradation of color fidelity or picture quality
and without noticeable audio distortion or cross -channel interference.
SECTION 11: Engineering and Construction. The Company
agrees to start engineering of the System within ninety days after the
passage of this Ordinance and to start construction within twelve months
after this permit is granted. Construction shall be deemed to include a
survey of the City and a design of the System, and the Company shall pro-
ceed with all reasonable dispatch thereafter to complete its service lines
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so that television service will be available to all the citizens of the City
within twenty-four months after the effective date of this permit -franchise.
SECTION 12: Free Channel and Service for Schools. The
Grantee shall furnish, upon reasonable request, without charge, one con-
nection for receiving its service to each public, parochial and independent
school and college level institutions and each public library, located in the
area it serves, and shall make no charge for the monthly service there-
after. Any such school, college, or public library may, at its own
expense, install additional connections to the service provided by the
Grantee for its own purposes. The Company further agrees to make
available to all school districts in which subscribers are located a channel
for the purpose of adult education classes, supplemental education, school
announcements, reports by school officials, live or delayed coverage of
school board sessions, public information, public announcements, and
emergency warnings.
SECTION 13: Free Channel and Service for the City. The
Grantee shall furnish to the City, upon reasonable request and without
charge to the City, one connection for receiving its service to each police
and fire station or other municipal building. The Company further agrees
to make available to the City a channel for the purpose of reports by City
Officials, live or delayed coverage of City Council sessions, public
information, public announcements, and emergency warnings.
SECTION 14: Performance Bond. Prior to furnishing any
service to subscribers, the Company shall furnish to the Municipality a
Bond in the penal sum of $25, 000. 00 for performance of the requirements
imposed upon the Company by this Ordinance.
SECTION 15: Cancellation of Permit. If the Company
shall fail to comply with any of the provisions of this Ordinance or default
in any of its obligations, except for causes beyond its reasonable control,
and shall fail, within thirty days after written notice from the City to
correct such default or non. -compliance, the City Council shall have the
right to revoke this Ordinance and all rights of the Company hereunder.
SECTION 16: Removal of Property. Upon expiration of
this Permit or the termination of the rights herein granted for any reason,
the Company shall remove all of its plants, structures, works, pipes,
mains, conduits, cable, poles and wires and refill at its own expense any
excavation that shall be made by it and shall leave said streets, alleys,
public ways and places in as good condition as that prevailing prior to the
Company's removal of the equipment and appliances.
SECTION 17: Company not to compete. This Permit shall
not in any way be construed as a license or permit to the Company to
engage in the sales or service of radio or television sets or equipment.
As part of the consideration for the granting of this Permit, the Company
has agreed not to so engage.
SECTION 18: Limitation on Sale or Service of Television
Sets. The Company shall not engage, directly or indirectly, in the sale
or service of television sets, accessories or related equipment, other
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than the servicing of equipment which shall be a part of the System. The
Grantee shall not suggest or recommend any television sale or service
firm to its subscribers.
SECTION 19: Penalties. Any violation by the Grantee,
its vendee, lessee or successor, of the material provisions of this fran-
chise, shall be cause for the forfeiture of this franchise and all rights
hereunder, provided that the City shall first notify the Grantee in writing
of the condition or act on which the violation is charged, and the Grantee
shall have thirty days within which to remedy such condition or act, and
provided further, that should the immediate remedy thereof be out of the
control of Grantee, the Grantee shall have a reasonable time thereafter to
make said corrections.
SECTION 20: Regulation by Other Agencies. This franchis,
and all of its terms shall be subject to and controlled by all of the pro-
visions of the laws and the regulations of duly constituted regulatory bodies
of the State of Illinois and the United States of America, now existing or
hereinafter enacted, and the running of all time hereunder, except for
franchise payments as set forth in Section 23 herein, shall be tolled until
the Grantee shall receive licenses and permits by final and unappealable
order from all state and federal regulatory bodies requiring the grant of
such as shall be necessary for the operation of the System as required
herein and any microwave system servicing it; provided, however, that
Grantee shall diligently file all the necessary applications therefor with
such state and federal regulatory bodies requiring the same, and diligently
pursue the granting of the necessary licenses and permits.
SECTION 21: Notices. All notices herein provided for
shall be sent prepaid registered mail addressed to the parties as follows:
To the City: City Clerk
City of McHenry
1111 N. Green Street
McHenry, Illinois 60050
To the Grantee: Vue-Sonics, Inc.
c/o Zukowski & Zukowski
50 North Virginia Street
Crystal Lake, Illinois 60014
or such other address as the parties hereto shall designate by notice to
the other.
SECTION 22: Pay Television Prohibited. The Grantee
shall not, without the consent of the Council, engage in furnishing pay
television, which for the purposes hereof is defined as the charging of
any sum of money, over and above the regular monthly service charge
for special programs. The provisions of this section shall not be applicabl
to the educational and cultural organization programming the educational
channels furnished to it by the Grantee, as long as such organization shall
maintain and continue to be qualified under Section 170(c) of the United
States Internal Revenue Code of 1954, as amended.
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SECTION 23: Franchise Fee. The Company agrees to
pay annually to the Municipality 5.0% of the total gross operating revenue
from monthly service charges, and to afford the authorized officials or
representatives of the Municipality access to any and all company records
at all reasonable times for the purpose of determining whether said fee
has been properly calculated and paid.
SECTION 24: Effective Date of Ordinance. This Ordinance
will be in full force and effect from and after its passage and approval.
Mayor
ATTEST:
(Clerk
PASSED: 9 / 7 / 71
APPROVED: 9 /7 /71
PUBLISHED:
The passage of this Ordinance was moved by Bolger, seconded by Rogers,
and approved by the following vote of all council members.
Voting Aye: Bolger, Harker, Howard, Hromec, Pitzen, Rogers,
Smith, & Stanek.
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