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HomeMy WebLinkAboutOrdinances - O-71-49 - 09/07/1971 - GRANT FRANCHISE FOR CABLELOOZE " 'NE ATT 3431 W. — aT McHENRY, Nols J- r//-�/� 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. -I- LOOZE - _NNE AT7 3431 W eT McHENRi AOIS 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. - 2 - (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. - 3 - LOOZF NNE AT 1 3431 %% , EET McHENRti. • INOIs 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 LOOZE P- "1NNE AT7 3431 V (. ET MCHENF. 40IS 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 LOOZE ' -NNE 11 nr �-7 - 5- 3431 N ET McHENR A01S 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. LOOZE n "INNE ar 3431 \ ET McHENe .110IS LOOZE & WINNE AT _._ 3431 V ET WHENI .OIS 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. l ♦ i�Ji-� 1 , i i—nl/}F i - 7 -