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HomeMy WebLinkAboutOrdinance No. 123ORDINANCE NO. lo? -5_ AN ORDINANCE GRANTING A CABLE TELEVISION FRANCHISE TO TV CABLE OF THE COLONY, INC.; PROVIDING TERMS AND CONDITIONS OF SAID FRANCHISE; PROVIDING RATES TO BE CHARGED; PROVIDING THAT RATES CANNOT BE CHANGED WITHOUT CONSENT OF THE CITY; PROVIDING FOR ACCEPTANCE BY FRANCHISEE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY: SECTION 1. Short Title. This Franchise shall be known and may be cited as the "TV Cable of The Colony, Inc. Cable Television Franchise" or "Franchise". SECTION 2. Definitions. For the purpose of this Franchise the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent 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) "Municipality" is the City of The Colony, Texas. (2) "Company" is the grantee of rights under this Franchise, known as TV CABLE OF THE COLONY, INC. D. C. 20554. (3) "FCC" is the Federal Communications Commission, Washington, (4) "Person" is any person, firm, partnership, association, cor- poration, company or organization of any kind. (5) "Cable Television System" or "System" shall mean the system of antennas, cables, microwave facilities, wires, lines, towers, waveguides, or any other conductors, converters, equipment or facilities designed and constructed for the purpose of receiving, producing, amplifying and distributing, primarily by microwave, wire, or cable, audio, video and other forms of electronic or electrical signals or impulses to subscribing members of the public who pay for such service. (6) "Gross Subscriber Revenues" shall be all revenues from the operation of the System, including bi-directional security services, whether operated by Company, it successor, assignee, lessee, or any other person or entity. SECTION 3. Qualifications of Grantee and Grant of Authority. Pursuant to public notice, a public hearing concerning the application of Company for the Franchise herein granted was held which afforded all interested parties an opportunity to participate in, and comment upon, the legal, character, financial, technical and other qualifications of Company and the adequacy and feasibility of Company's arrangements for the operation of the System within the Municipality. As part of that hearing the Municipality hereby finds that Company possesses all necessary qualifications and the Company's operation is adequate and feasible, and pursuant to such finding the Municipality hereby grants to Company a non- exclusive franchise, right and privilege to operate, modify, add to and maintain, in, upon, along, across, above, over and under the highways, streets, alley, sidewalks, public ways and public places now laid out or dedicated and all extensions thereof, and additions thereto, in the Municipality, poles, wires, cables, underground conduits, manholes and other television conductors and fixtures necessary for the maintenance and operation of the System for the purpose of distributing television and radio signals, and other electronic impulses in order to furnish television and radio programs, and various communi- cations and other electronic services to the public. The right so granted includes the right to use and occupy said streets, alleys, public ways and public places and all manner of easements for the purposes herein set forth consistent with local ordinances and local laws and with permission of and supervision by the Municipality. The Municipality reserves the right to adopt, in addition to the provisions contained in the Franchise and existing applicable ordinances and local laws such additional regulations or amendments to the Franchise as it shall find necessary in the exercise of its police power; provided, however, that such regulations or amendments are reasonable and not materially in conflict with the privileges granted in this Franchise. SECTION 4. Indemnification and Insurance & Franchise Bond. (A) Indemnification. The Company shall indemnify the Munici- pality, its officers, agents or employees and hold it harmless from all lia- bility, for damage, cost, including the cost of defense, and all attorney's fees or expense arising from claims of injury to persons or damage to property occasioned by the granting of the Franchise, or the operation, installation, expansion, or maintenance of the System by the Company. - 2 - (B) Insurance. Company agrees to maintain, with the Municipality as an additional named insured as its interest shall appear, at its sole expense, with insurance companies acceptable to the Municipality, the following insurance. (1) Comprehensive General Liability Insurance, including Contractual Liability, with Combined Single Limit of Bodily Injury and Property Damage Liability of $1,000,000.00. (2) Workers Compensation Insurance covering all of the Company's employees, as required by the Workmen's Compensation Law of Texas, Certificates of Insurance evidencing the above required insurance will be furnished the Municipality within ten (10) days of the granting of the Franchise, and all renewals of this required insurance will be certified within ten (10) days of the expiration of such policies. All Certificates of Insurance will provide that thirty (30) days advance notice of cancellation, or material change in such coverage will be furnished to the Municipality. Company shall obtain within thirty (30) days after receipt of all necessary approvals of this Franchise and by its acceptance of this Franchise specifically agrees that it will maintain throughout the term of this Franchise a faithful performance bond running in favor of the Municipality, written by an approved corporate surety, in the amount of $100,000.00, con- ditioned that Company shall well and truly observe, fulfill, and perform its obligations under the Franchise. An amount equal to all damages proximately resulting from the failure of the Company to well and faithfully observe and perform such provisions, shall be recoverable from the principal and sureties thereof by the Municipality. In the event that any amount is forfeited to the Municipality under the provisions of this paragraph, the Municipality reserves the right to require the Company to post new or additional security in the like amount. Company shall pay all premiums chargeable for the bond and shall keep the same in full force and effect at all times throughout the term of this Franchise and during the removal of all poles, wires, cables, underground conduits, manholes, and other conductors and fixtures incident to the maintenance and operation of the System as defined in this Franchise. The bond shall contain a provision that it shall not be terminated or otherwise allowed to expire prior to sixty (60) days after written notice to that effect is given to the Chief Fiscal•Officer of the Municipality. ms SECTION 5. Local Office or Agent and Complaint Procedures. The Company shall provide, by maintenance of a local business office within the Municipality, for receiving via a local telephone call, inquiries or complaints regarding quality of service, equipment, malfunctions, billing disputes and similar matters. The office hours are to be at least eight (8) hours out of the period 8:00 AM to 6:00 PM Monday through Friday, legal holidays excepted. Emergency maintenance service shall be performed from 5:00 to 10:00 PM on weekdays and 8:30 AM to 10:00 PM Saturdays, Sundays and legal holidays. Emergency service shall be required upon the receipt of service calls from three or more subscribers within a reasonable contiguous geographical area. All complaints received shall be recorded on a Company log and shall reflect the name, address, the time or date of call, what the complaint is, to whom assigned, when completed and what was found. The Municipality appoints its Director of Community Development as its agent to receive inquiries or complaints about the Company's operations. Subscriber complaints shall be acted upon and resolved as expeditiously as possible and in any event within forty-eight (48) hours of receipt barring unforeseen circum- stances beyond the control of the Company. The Company shall provide notice to each subscriber, at the time of initial subscription and thereafter at intervals of not more than one year, of the procedure for reporting and resolving subscriber complaints. SECTION 6. System Construction, Maintenance and Procedures. (a) Upon grant of this Franchise to construct and maintain a community television system in the Municipality, the Company may enter into contracts with Light, Gas and Water Division of the Municipality, and Public Utility Companies or any other owner or lessee of any poles located within or without the Municipality to whatever extent such contract or contracts may be expedient and of advantage to the Company for use of poles and posts necessary for proper installation of the System, obtain right of way permits from appro- priate State, County and Federal officials necessary to cross highways or roads under their respective jurisdictions to supply main trunk lines from the Company's receiving antennas, obtain permission from the Federal Aviation Authority to erect and maintain antennas suitable to the needs of the System and its subscribers and obtain whatever other permits a City, County, State or Federal Agency may require. The Company acknowledges that most of the utilities presently servicing the Municipality are located underground and such policy is Z� expected to be followed at the present and in the future. In the construction, installation and maintenance of its System, the Company will adhere to the policy of underground construction and will use steel, cable and electronic devices, all of specialized and advanced design and type. In the operation of its System, the Company will employ personnel with training, skill and experience in electronics and communications. Neither material nor personnel of this sort will be available to the Company for its System in the event of a war or other similar national emergency. (b) The Company's System, poles, wires, and appurtenances shall be located, erected and maintained so that none of its facilities shall endanger or interfere with the lives of person, or interfere with any improvements the Municipality may deem proper to make, or unnecessarily hinder or obstruct the free use of the streets, alleys, bridges, easements or public property. (c) All transmission and distribution structures, lines and equip- ment erected by the Company within the Municipality 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 or reasonable convenience of property owners who adjoin any of the said streets, alleys or other public ways and places. (d) In case of any disturbance of pavement, sidewalk, driveway or other surfacing, the Company shall, at its own cost and expense and in a manner approved by the Municipality, replace and restore all paving, sidewalk, driveway or surface of any street or alley disturbed, in as good condition as before said work was commenced. (e) In the event that at any time during the period of this Franchise the Municipality shall lawfully elect to alter, or change the grade of any street, alley or other public way, the Company upon reasonable notice by the Municipality, shall remove manholes and other fixtures at its own expense. (f) The Company shall not place poles or other fixtures where the same will interfere with any gas, electric or telephone fixture, water hydrant or main, and all such poles or other fixtures placed in any street shall be placed at the outer edge of the sidewalk and inside the curb lines, and those placed in alleys shall be placed close to the line of the lot abutting on said alley, and then in such manner as not to interfere with the usual travel on said streets, alleys and public ways. - 5 - (g) The Company shall, on the request of any person holding a building moving permit, issued by the Municipality, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and the Company shall have the authority to require such payment in advance. The Company shall be given not less than forty-eight (48) hours advance notice to arrange for such temporary wire changes. (h) The Company shall have the authority to trim trees upon and over -hanging streets, alleys, sidewalks and public places of the Municipality so as to prevent the branches of such trees from coming in contact with the wires and cables of the Company, all trimming to be done under the supervision and direction of the Municipality and at the expense of the Company. SECTION 7. Franchise. (a) Term. The Franchise granted Company herein shall terminate fifteen (15) years from date of grant. Thereafter the Franchise may be renewed for a period of ten (10) years duration on the same terms and conditions con- tained herein or on such different or additional terms and conditions as may be negotiated between the Municipality and the Company. The Company's application for Franchise renewal shall be granted provided: (1) Company shows that its CATV service during the preceding franchise period has reflected a good -faith effort to serve the needs and interests of its service area, and (2) Company has not demonstrated a callous disregard of the law and all pertinent regulations. (b) Franchise Fee. Company shall pay quarterly to the Munici- pality five (5%) percent (provided the FCC approves such rate) of all the gross revenues received from the operation of all facet of its business in the City of The Colony collected during each calendar quarter, payable sixty (60) days after each quarter. Company and the Municipality shall jointly apply for FCC approval of a five (5%) percent franchise fee. Should the five (5%) percent franchise fee not be approved, Company hereby agrees to continue efforts to obtain such approval until such time as the approval is granted. During the time of seeking such approval the franchise fee shall be the maximum allowed by the FCC, not less than three (3%) percent or more than five (5%) percent. Company shall within ninety (90) days of the close of its annual accounting period furnish the Municipality with the Report of Operations, certified by Company's Treasurer and Company's Certified Public Accountant, showing Company's annual gross revenues during the preceding year and such other information as Municipality shall reasonably require with respect to Company's operations. (c) Change of Ownership. Company shall not sell, assign or transfer its System or any right under this Franchise without the prior written consent of the Municipality, which shall not be reasonably withheld, and such sales shall be conditioned upon the vendee, assignee or transferee filing with Municipality an instrument duly executed, reciting the fact of such sale, assignment or transfer, and containing an acceptance of the terms of the Franchise and agreeing to perform all the requirements thereof, provided, however, that Company may transfer its System to any other corporation or partnership under the same ownership as Company without the consent of Munici- pality. In the event a cumulative total of more than fifty (50%) percent of the voting stock or ownership of the Company is proposed to be sold to an entity or person, unrelated to the present owners, the prior consent of the Municipality to such sale shall be required. Consent of the Municipality shall not be unreasonably withheld. SECTION 8. Records and Reports. The Municipality reserves the right to inspect all pertinent books, records, plans, maps, financial statements and other like materials of the Company upon reasonable notice and during normal business hours. The Municipality shall require Company to furnish annual financial statements audited by a Certified Public Accountant, including balance sheet, income statement and statement of changes in financial position. The Municipality shall require Company to furnish quarterly operating statements certified by an officer of Company, including gross revenues categorized by class, operation and maintenance expenses, depreciation and showing profit or loss from operations for quarter. Included with the quarterly operating statements will be quantitative data for the franchise giving number of subscribers; number of connects, reconnects and disconnects; number of service call complaints categorized by subscriber equipment and company equipment failure; number of miles of distribution system in service; number of hours of local programming provided and total number of hours of programming offered. - 7 - SECTION 9. Rates. Attached to and made a part of this Franchise ordinance is Schedule "A", a complete schedule of rates, which may be charged to sub- scribers of cable television service. Unless otherwise stated in Schedule "A", no increase in the rates listed may be made without approval of the Municipality. In the event the grantee wishes to request a change in the rates, the following procedure will be followed, but in no event can an application for a change of rates be filed with the Municipality until two (2) years have elapsed since the grant of this Franchise. Should the grantee request an increase in rates, the following will be observed: The grantee shall petition the Municipality at a regularly scheduled meeting of the governing body and shall notify the subscribers to the System of the request of the increase either by mail, or newspapers having circulation in the areas as on the cable system. The Municipality shall call a public hearing on the grantee's request for rate increase. The hearing shall be set within sixty (60) days of the petition filed. If the Municipality decides not to call a public hearing within sixty (60) days, the grantee may increase its basic rate only by seven (7%) percent without any further Municipality action. Should the Municipality require assistance in the evaluation of the rate request, such assistance will be underwritten by the grantee and such costs shall be recoverable through the additional rates that may be allowed. If the Municipality fails to act upon the petition within ninety (90) days following the public hearing held on the rate increase request, such rate increase shall be deemed to be approved. Any period of time may be extended for any period by joint agreement of the Municipality and the grantee. In addition to the monthly service provided above, the Company may add to that rate taxes or fees imposed upon the Company's gross revenues by Municipal, State or Federal government or legislative bodies. SECTION 10. Construction Standards and Timetable. (a) In order that all subscribers shall receive the best possible service, Company shall install and maintain its system to conform with the highest current state of the art and technical development in the field of cable television signal distribution. (b) Company's System shall meet or exceed all FCC specifications of engineering standards in effect as of the date of the grant of this Franchise and shall comply with all future modifications of those engineering standards. (c) The System shall have the capability of distributing all UHF and VHF telecasts originating from broadcast stations licensed in Dallas and Tarrant Counties and shall distribute the signals of such broadcast stations at all hours of their broadcast. Stations broadcasting on the UHF frequencies may be converted to vacant VHF frequencies as desired. (d) Company's System shall be capable of carrying a minimum of thirty-five (35) television channels and shall be capable of active two-way communications. (e) Company's System shall have the capability to distribute a continuous weather and time information service. (f) Company shall provide a designated channel for School District programming. Company shall also provide at least one designated channel for use by institutions of higher education. Company shall also provide a designated channel for the programming of the Municipality. (g) Company's System shall be designed to provide an emergency override capability, allowing emergency warnings to override the television signals carried on the System. The Company shall provide the amount of Fifteen Thousand and No/100 Dollars ($15,000.00) either in cash or by use of matching or funded federal agency grants to the Municipality for the purchase of equipment, planning and implementation of a civil defense and emergency preparedness system for the citizens of the Municipality. (h) Within sixty (60) days after the date of this grant, the Company shall obtain all necessary permits and authorizations which are required in the conduct of its business. Company shall commence construction and installation of this System within one hundred fifty (150) days from the date of this grant. Within two hundred forty (240) days from the date of this grant, grantee shall proceed to render service to subscribers, and the completion of the construction and installation shall be pursued with reasonable diligence. Service to all areas of occupied dwellings requesting service within the Munici- pality with a density of at least fifty (50) homes per 5,280 cable feet shall be provided within eighteen (18) months from the date of this grant, subject to circumstances beyond the control of the Company. After completion of construction of the System (eighteen months after the date of this grant), Company shall provide service to other areas of the Municipality within sixty (60) days of request for service, provided that such extension of service shall serve a density of at least fifty (50) homes per 5,280 cable feet computed from the nearest point of existing distribution plant. (i) Company shall advise the Building Inspection Department of the Municipality prior to the beginning installation of, or removal of, equipment or construction facilities. All installations and attachments will conform to Municipal Ordinance and be subject to all inspections required by the Municipality. (j) The Company shall furnish a Certificate of Deposit payable to the Municipality in the sum of Fifty Thousand ($50,000.00) Dollars which shall guarantee that the construction timetables set forth above and the manner of construction provided herein shall be complied with. Due to the uncertainty and speculative nature of any damages that the Municipality might incur as a result of Company's failure to construct the System within the time set forth above and in the manner herein provided, such Certificate of Deposit constitutes agreed liquidated damages to the Municipality in the event Company fails to so construct such System. Upon completion of the System within the timetables set forth above, and delivery to the Municipality of FCC proof of performance compliance, such Certificate of Deposit, along with all earnings thereon, shall be returned or refunded to the Company within thirty (30) days. SECTION 11. Theft of Services and Tampering. No person, whether or not a subscriber to the cable system, shall willfully, maliciously or otherwise damage or cause to be damaged any wire, conduit, apparatus, appurtenance, or equipment of the Company, or commit any act with intent to cause such damage, or to tap, tamper with or otherwise connect any wire or device to a wire, cable, conduit, apparatus, appurtenance or equipment of the Company with the intent to obtain a signal or impulse from the cable system without authorization from or compensa- tion to the Company, or to obtain cable television or other communication service with intent to cheat or defraud the Company of any lawful charge to which it is entitled. SECTION 12. Public Access. The Company shall make available to the citizens of the Municipality equipment for cablecast of local origination - 10 - programming. The equipment will include television cameras and video tape recorders and necessary devices to convert film to television pictures. SECTION 13. Separability. If any section, subsection, sentence, clause, phrase or portion of this Franchise is for any reason held invalid or uncon- stitutional by any court or other authority of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions hereof. SECTION 14. Default. In the event Company shall fail to complete system construction and provide service in accordance with Proposal For Cable Television Franchise filed with the Municipality on April 15, 1980, perform its obligations or shall be in default under this Franchise and shall fail to correct such failure to perform within sixty (60 ) days after written notice thereof by the Municipality, the Franchise may be revoked by the Municipality, provided, however, that the Company shall not be responsible for any failure to perform due to Federal, State or Municipal action, statute, ordinance or regulations; strike or other labor trouble; act of God, riot or other civil disturbance; inability to secure materials or supplies, or, without limiting the foregoing, by any other cause, contingency or circumstances beyond the control of Company which hinders or prevents its performance under this Franchise. The Municipality may extend the period within which Company shall correct any failure to perform upon application of the Company, but for good cause. No revocation of the Franchise shall occur except upon written notice thereof to the Company by the Municipality and upon public notice and a public proceeding affording due process. SECTION 15. Penalty. Any person, firm or corporation that shall violate any of the provisions of Section 11 of this Franchise shall be guilty of a misdemeanor, and upon conviction thereof, shall be fined not more than Two Hundred ($200.00) Dollars, and each day such violation shall be permitted to exist shall constitute a separate offense. SECTION 16. That this ordinance shall become effective when accepted by TV Cable of The Colony, Inc. in writing, and if not accepted in writing within thirty (30) days shall become null and void and of no force and effect. DULY PASSED on first readi n,% by the City Council of the City of The Colony, on this the day of 070_t� , 1980. FINALLY PASSED on second reading by the City Council of the City of The Colony, on this the day of 1980. APPROVED AS TO LEGALITY OF THE FORM: CITY ATTORNEY APPROVED: MAY ACCEPTED BY TV CABLE OF THE COLONY, INC. on this the W day of1980. ATTEST: -57 a4-4 )-"t Secretary TV CABLE OF THE COLONY, INC. By: Ben)Y. Cam b ll Pr sid nt p e - 12 - SCHEDULE "A" A. Schedule of Rates: 1. Installation Fees: a. Residential Installations. The following installation rates apply to Basic service to single family dwelling units and apartment/flats within multiple dwelling structures. (1) Primary Outlet Standard Installation - Aerial Drop - (drill through an outside wall to an adjacent loca- tion of TV set wall plate) - (2) Each Additional Outlet (same service call as Primary Outlet Installation -drill through an outside wall to an adjacent location of TV set wall plate) - (3) Each Additional Outlet (Separate service call - drill through an outside wall to an adjacent location of TV set wall plate) - (4) Standard Underground Instal- lations (within 150 feet of a feeder line -drill through an outside wall to an adjacent location of TV set wall plate) - (5) Non -Standard Installation - actual costs of materials and labor for such in- stallation, or $15.00, whichever is less. actual costs of materials and labor for such in- stallation, or $5.00, whichever is less. actual costs of materials and labor for such in- stallation, or $10.00, whichever is less. actual costs of materials and labor for such in- stallation, or $25.00, whichever is less. actual costs of materials and labor for such in- stallation. b. Other Installations. The installation rates for Basic service which apply to all other facilities is at Franchisee's actual cost of materials and labor. C. Public and Parochial Schools, Colleges, Municipal Buildings and Dealers in Television Sales and Service. A Service drop will be provided, on request, without charge, to a single point of entrance to a building or complex of builings located at one geographic area, at public and parochial schools, colleges, city buildings, and dealers in television sales and service, which are within one hundred fifty (150) feet of a feeder line. Interior cabling and exterior distribution within a complex of buildings in a geographic area shall be provided on request at Franchisee's cost. At the time the school or city activates the Special Services Network for its own exterior/interior distribution, Franchisee will render technical assistance without charge and pay one- half of such materials and labor installation costs, subject to inspection and approval by Franchisee. Page 1 of 6 2. d. Franchisee's Employees. Franchisee's employees will be provided with free installation. Monthly Service Charges: The Basic Service provided by Franchisee is described herein as an "outlet". Services will be provided at the rates specified below. a. Residential Dwellings and Commercial Establishments. The following rates apply to commercial establishments excluding A.2.b.), single family dwelling units, and individual apart- ments/flats within multiple dwelling structures: (1) Primary Outlet, Monthly with Con- verter: Twenty -Six (26) Channels, including four (4) educational channels, one (1) future use channel, and five (5) optional premium pay channels. $4.50 (2) Primary Outlet, Monthly with Con- verter: Thirty -Five (35) Channels, including four (4) educational channels, one (1) local origination, three (3) future use channels, and five (5) optional premium pay channels. $7.50 (3) Primary Outlet, Monthly without Converter*: Twenty -Six (26) channels including four (4) educa- tional channels, one (1) future use channel, and five (5) optional premium pay channels. $3.00 (4) Primary Outlet, Monthly without Converter*: Thirty -Five (35) channels including four (4) educa- tional channels, one (1) local origination, three (3) future use channels, and five (5) optional premium pay channels. $6.25 (5) Additional Outlets, Monthly each with converter. $3.00 (6) Additional Outlets, Monthly each without converter. $1.50 *This rate is quoted on the assumption that if and when converters become available for purchase by consumers as are telephones, a subscriber may elect to purchase a converter of appropriate decor rather than pay a rental charge to Franchisee. b. Certain Institutional Rates. The following rates apply to hotels, motels, nursing homes, hospitals, and other similar institutions not considered a "dwelling" unit (i.e. not having per unit kitchen and bathroom facilities) which request service on a single billing basis for one hundred (100%) percent of the rooms or units within the structure. Deposits equal to the cost of the converter will be required for all converters supplied to these facilities. (1) Each Outlet with Converter $3.00 (2) Each Outlet without Converter $2.00 Page 2 of 6 C. Franchisee's Employees. Employees of Franchisee living in the cabled areas will be provided with cable service free of charge in return for their agreement to undertake the following: (1) the employees shall observe reception in their homes periodically and shall report their findings to Franchisee as directed, and (2) tests of service of an experimental nature, not offered to the general public, will be made in the homes of such Franchisee's employees upon request of Franchisee. d. Other Charges. (1) Transfers - When a subscriber moves from one address within th�achised area to another address within the franchised area and there is no lapse in service, a transfer charge will be made as follows: i) if drop cable must be in- stalled from pedestal to dwelling and an instal- lation fee has been previously collected from the subscriber - i i ) if drop cable must be in- stalled from pedestal to dwelling and an instal- lation fee has not been previously collected from the subscriber - iii)if drop cable exists from pedestal to dwell- ing and an installation fee has been previously collected from the subscriber - iv) if drop cable exists from pedestal to dwell- ing and an installation fee has not been pre- viously collected from the subscriber - actual costs of materials and labor for such in- stallation, or $10.00, whichever is less. actual costs of materials and labor for such in- stallation, or $15.00, whichever is less. actual costs of materials and labor for such in- stallation, or $5.00, whichever is less. actual costs of materials and labor for such in- stallation, or $10.00, whichever is less. (2) Reconnects - Subscribers desiring restoration of service at same location shall first pay off any past indebtedness. A reconnect charge of the actual costs of materials and labor for such installation, or $10.00, whichever is less, shall be paid by the subscriber. (3) Relocation of Extension of Cable - When a current sub- scriber requests that a standard extension or relocation of his cable be made, the charge will be the actual costs of materials and labor of such installation, or $10.00, which- ever is less. Non-standard relocations will be at the Franchisees actual costs of materials and labor of such installation. (4) Miscellaneous - From time to time, Franchisee may waive certain installation charges for promotional purposes. During these promotions, transfers and reconnect charges may be adjusted downward so that they are no greater than the promotional installation charge. Page 3 of 6 THE FOLLOWING ADDITIONAL MOVIE AND SPECIAL EVENT CHANNEL CHARGES (e. ADDITIONAL SERVICES), SECURITY, FIRE ALARM OR OTHER PROTECTIVE SERVICE CHARGE, f. BI- DIRECTIONAL SECURITY SERVICES) AND EDUCATION AND TUITION FEES NOT COVERED BY OTHER SPECIAL CHARGES MAY BE INCREASED OR DECREASED BY FRANCHISEE AND NOT SUBJECT TO APPROVAL BY THE MUNICIPALITY ARE AS FOLLOWS (THE FOLLOWING FEES ARE THE INITIAL CHARGES THAT SHALL BE CHARGED BY THE FRANCHISEE AND NOT TO BE CONSIDERED PART OF THE BASIC SERVICE): e. Additional Services. Premium Pay Service: (1) Installation Fees - Premium Pay Service, if in- stalled at the time of installation of Basic service Premium Pay Service No Charge actual costs of materials and labor for such in- stallation, or $10.00, whichever is less. (2) Primary Outlet, Monthly with or without Converter: Home Theatre Network or comparable substitute $4.00 Home Box Office Maxi or comparable substitute $6.00 Showtime Plus or comparable substitute $7.00 Home Box Office or comparable substitute $8.00 (3) Additional Outlet, with or without Converter: All of the above services No Charge f. Bi -Directional Security Services. (1) Installation Fees: i) Level I - Single "panic" button wall mount alert for police - $ 99.00 ii) Level I I- One wall mount panel containing smoke/ - fire, police, medical and local enunciator buttons *$139.00 iii)Level III - One wall mount panel containing smoke/fire, police, medical and local enunciator buttons with one (1) key lock arming panel for automatic intrusion alert - *$279.00 *Level II and Level III equipment must be maintained for preventative and on-site maintenance and a monthly maintenance fee of $6.00 shall be charged each customer utilizing either services (the $6.00 is not cumulative so that a customer utilizing Level III pays only $6.00 per month maintenance fee). Page 4 of 6 •c THE FOLLOWING ADDITIONAL MOVIE AND SPECIAL EVENT CHANNEL CHARGES (e. ADDITIONAL SERVICES), SECURITY, FIRE ALARM OR OTHER PROTECTIVE SERVICE CHARGE, f. BI- DIRECTIONAL SECURITY SERVICES) AND EDUCATION AND TUITION FEES NOT COVERED BY OTHER SPECIAL CHARGES MAY BE INCREASED OR DECREASED BY FRANCHISEE AND NOT SUBJECT TO APPROVAL BY THE MUNICIPALITY ARE AS FOLLOWS (THE FOLLOWING FEES ARE THE INITIAL CHARGES THAT SHALL BE CHARGED BY THE FRANCHISEE AND NOT TO BE CONSIDERED PART OF THE BASIC SERVICE): e. Additional Services. Premium Pay Service: (1) Installation Fees - Premium Pay Service, if in- stalled at the time of installation of Basic service Premium Pay Service No Charge actual costs of materials and labor for such in- stallation, or $10.00, whichever is less. (2) Primary Outlet, Monthly with or without Converter: Home Theatre Network or comparable substitute $4.00 Home Box Office Maxi or comparable substitute $6.00 Showtime Plus or comparable substitute $7.00 Home Box Office or comparable substitute $8.00 (3) Additional Outlet, with or without Converter: All of the above services No Charge f. Bi -Directional Security Services. (1) Installation Fees: i) Level I - Single "panic" button wall mount alert for police - $ 99.00 ii) Level I I- One wall mount panel containing smoke/ - fire, police, medical and local enunciator buttons *$139.00 iii)Level III - One wall mount panel containing smoke/fire, police, medical and local enunciator buttons with one (1) key lock arming panel for automatic intrusion alert - *$279.00 *Level II and Level III equipment must be maintained for preventative and on-site maintenance and a monthly maintenance fee of $6.00 shall be charged each customer utilizing either services (the $6.00 is not cumulative so that a customer utilizing Level III pays only $6.00 per month maintenance fee). Page 4 of 6 (2) Monthly Service Charges: Level I $ 4.95 Level II $ 10.95 Level III $ 10.95 B. TV Cable of The Colony, Inc. shall provide the following channel offering: Primary Outlet with converter - $4.50 monthly Twenty -Seven (27) programming services Twenty -Six (26) channels as follows: Cable hl - o Weather Services (Local Data & Area Radar) Cable o Lewisville Independent School District Cable o KDFS - TV 4 CBS o KXAS - TV 5 NBC o Government Access/24 hour alpha -numeric Keyboard Cable o Community Access/24 hour display billboard Cable o WFAA - TV 8 ABC o KXTX - TV 39 Specialty o Channel Marque & Program Listings Cable o KTVT - TV 11 Independent o Newswire Services (Texas & National) Cable o KERA - TV 13 PBS o C-SPAN/KTVU - TV 2 (late night) Satellite o Nickelodeon/WOR - TV 9 (late night) Satellite o Christian Programming Satellite o Education - I (Pre -School to Elementary) Microwave o Education - II (Elementary to Jr. High) Microwave o Education - III (Jr. High to High School) Microwave o Education - IV (High School to College) Microwave o Local Origination Cable o Future OPTIONAL: (Parental lockout device is available at no charge if requested by subscriber): o Future o Home Theater Network - PTV Satellite o Home Box Office Maxi - PTV Satellite o Showtime Entertainment - PTV Satellite o Home Box Office - PTV Satellite A Program Guide will be supplied to all subscribers. Page 5 of 6 Primary outlet with converter - $7.50 monthly Thirty -Six (36) programming services Thirty -Five (35) channels as follows: Cable Channel Nn - 0 Weather Services (Local Data & Area Radar) Cable o Lewisville Independent School District Cable o KDFS - TV 4 CBS o KXAS - TV 5 NBC o Government Access/24 hour alpha -numeric Keyboard Cable o Community Access/24 hour display billboard Cable o WFAA - TV 8 ABC o KXTX - TV 39 Specialty o Channel Marque & Program Listings Cable o KTVT - TV 11 Independent o Newswire Services (Texas & National) Cable o KERA - TV 13 PBS o C-SPAN/KTVU - TV 2 (late night) Satellite o Nickelodeon/WOR - TV 9 (late night) Satellite o Christian Programming Satellite o Education - I (Pre -School to Elementary) Microwave o Education - II (Elementary to Jr. High) Microwave o Education - III (Jr. High to High School) Microwave o Education - IV (High School to College) Microwave o Local Origination Cable o Sports & Stockwire Services Cable o Satellite Program Network Satellite o Entertainment & Sports Program Network Satellite o WTBS - TV 17 Independent o Cable News Network Satellite o WGN - TV 9 Independent o Local Origination Cable o Madison Square Garden Sports Satellite o Future o Future OPTIONAL: (Parental lockout device is available at no charge if requested by subscriber): o Home Theater Network - PTV Satellite o Home Box Office Maxi - PTV Satellite o Showtime Entertainment - PTV Satellite o Home Box Office - PTV Satellite A Program Guide will be supplied to all subscribers. 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