G-01-11-20-12A1 - 11/20/2001ORDINANCE NO. G-01- 1!- aO- la A 1
AN ORDINANCE GRANTING TO GRANDE
COMMUNICATIONS, INC. A FRANCHISE FOR
CONSTRUCTING, MAINTAINING, OPERATING AND
USING A CABLE SYSTEM WITHIN THE CITY OF ROUND
ROCK FOR THE PROVISION OF CABLE AND OTHER
SERVICES; PROVIDING THE TERMS AND CONDITIONS
UNDER WHICH THE FACILITIES OF GRANDE
COMMUNICATIONS, INC. WILL BE INSTALLED,
OPERATED AND MAINTAINED; ESTABLISHING A TERM
OF THE AGREEMENT; AND ESTABLISHING AN
EFFECTIVE DATE
WHEREAS, Grande Communications, Inc. (hereinafter referred to as "Grande" or
"Grantee") is a new provider of cable service and other services in Round Rock, and it is the
intent of the City of Round Rock (hereinafter referred to as "the City" or "Grantor"), if
required by statute and case law to do so, to establish competitively neutral franchises for
new entrants in the cable service market; and
WHEREAS, the City wishes to encourage the availability of such services; and
WHEREAS, as a condition of receiving this franchise, Grande has agreed to abide
by the City's current and future policies, ordinances and regulations regarding infrastructure
usage, street cuts and rights -of -ways; and
WHEREAS, all of the following recitals are true:
(A) Pursuant to Texas law, local Charter and ordinance, the federal Cable
Communications Policy Act of 1984 (the "1984 Cable Act") and the Cable
Television Consumer Protection and Competition Act of 1992 (the "1992 Act" or the
"1992 Cable Act"), Grantor is authorized to grant or renew franchises to construct,
operate and maintain cable systems, utilizing public rights-of-way and properties
within Grantor's jurisdiction.
(B)
(C)
Grantee desires to construct, operate and maintain a cable system within Grantor's
jurisdiction, in accordance with applicable law and the provisions hereof.
Grantor has a legitimate and necessary regulatory role in ensuring the maximum
feasible availability of cable communications service, the high technical capability
and reliability of cable systems in its jurisdiction, the availability of local
programming, including public, educational, and governmental access programming,
optimum customer service, and fair rates, subject to the limitations of applicable law.
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(D) While grant of a cable franchise to Grantee is found to be in the interest of the
welfare of the inhabitants of Grantor, it is also in the best interests of Grantor and its
inhabitants that such grant be limited and regulated according to the terms hereof and
of applicable law.
(E) The basis for Grantor's lawful regulatory authority to establish an enforceable
franchise agreement and associated regulatory mechanisms are Grantee's use of
public resources for its distribution network, the degree of effective competition in
cable service within the franchise area, and applicable federal law authorizing the
provision of cable services only through a local franchise agreement.
(F) Grantee, through the incorporated franchise agreement, is granted extensive and
valuable rights to operate its cable system for profit using Grantor's public rights-of-
way and public utility easements within the franchise area in compliance with all
applicable construction codes and procedures of Grantor. As trustee for the public,
Grantor is entitled to fair compensation to be paid for these valuable rights
throughout the term of the franchise agreement. The incorporated franchise
agreement will allow Grantee to operate a cable/broadband system, but it does not
grant the authority to use the public rights-of-way to operate a telecommunications
system.
(G) Diversity in cable service and local and non -local programming is an important
policy goal. Grantee's cable system should offer a wide range of programming
services which individually may not be desired by all subscribers, but collectively
represent a substantial share of the overall value of cable to current and prospective
subscribers, including local programming. Both Grantor and Grantee should be
mindful of existing and evolving legal constraints regarding the regulation of
program content. Both parties' actions in effectuating the franchise agreement should
seek to maximize channel capacity, facilities, and programming access for
government and educational agencies, as well as other groups and individual
members of the general public, so as to promote open government, local
programming access, educational opportunity, and a diversity of community
information and opinion, with an available "marketplace" for ideas.
(H) Flexibility to respond to changes in technology, subscriber interests, and competitive
factors within the cable service market and the larger market for entertainment and
information should be an essential characteristic of the franchise agreement. Both
Grantor and Grantee will stress maximum system flexibility to take advantage of new
technology to benefit subscribers and citizens as such technology becomes available
in the future; and
WHEREAS, in consideration of the mutual consideration and promises hereinafter
set forth, Grantor and Grantee agree to all of the herein -contained terms and conditions.
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ROUND ROCK, TEXAS:
SECTION 1.
DEFINITIONS
For the purpose of this franchise the following terms, phrases, words and their derivations
shall have the meaning given. 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 words "shall" and "will" are mandatory and "may" is permissive. Words not defined in this
section shall have the meaning provided by the Communications Act of 1934 as amended by the
Cable Communications and Policy Act of 1984, the Cable Television Consumer Protection and
Competition Act of 1992, and the Telecommunications Act of 1996, and if not defined there, shall
have their common and ordinary meaning in this ordinance:
(1) Access Channel means any non-commercial public, educational or government channel.
(2) Affiliate means each person who falls into one or more of the following categories:
(a) each person having, directly or indirectly, a controlling interest in Grantee;
(b) each person in which Grantee has, directly or indirectly, a controlling interest;
(c) each officer, director, joint venturer or joint venture partner, general partner, or
limited partner holding an interest of five percent (5%) or more of Grantee; or,
(d) each person, directly or indirectly, controlling, controlled by, or under common
control with Grantee; provided that affiliate shall in no event mean any limited
partner holding an interest of less than five percent (5%) of Grantee, or any creditor
of Grantee solely by virtue of its status as a creditor and which is not otherwise an
affiliate by reason of owning a controlling interest in, being owned by, or being under
common ownership, common management, or common control with, Grantee.
(3) Allocation Percentage means the number of cable system subscribers served by Grantee
under this franchise divided by the total number of subscribers Grantee serves in all areas.
(4) Basic Service means any service tier which includes the retransmission of local television
broadcast service, including the delivery of broadcast signals and programming originated
over the network, covered by the minimum monthly charge paid by subscribers. Basic cable
tier must include:
(a) all local television broadcast stations carried on the system by virtue of the Cable
Act's must -carry and retransmission consent provisions;
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(b) all public, educational and governmental (PEG) access channels; and
(c) any other local television broadcast stations carried on the system.
(5) Broadcast means the over -the -air transmission of electro -magnetic audio or video signals.
(6) Cable Act shall mean the Cable Communications and Policy Act of 1984, found in 47
U.S.C. §521 et.seq., and as thereafter or hereinafter amended.
(7) CATV or CATV System shall mean cable/broadband system as hereinafter defined.
(8) Cable/Broadband System shall have the meaning ascribed to the term "cable system" under
the Cable Act.
(9) Cable Service means:
(a) The one-way transmission to subscribers of:
(i) video programming, by which is meant programming provided by, or
generally considered comparable to programming provided by, a television
broadcast station, or
(ii) other programming services, by which is meant video, audio, or data
information that Grantee makes generally available to all subscribers, but
only to the extent the transmission of such video, audio, or data information
is deemed to be a cable service under applicable federal law; and
(b) Subscriber interaction (two-way transmission), if any, which is required for the
selection or use of such video programming or other programming service (such as,
by way of example, subscribers' accessing and utilization of data bases, the interne,
video game services, or other services, to the extent they are cable service under
federal law).
(10) Cable System means a facility consisting of a set of closed transmission paths and associated
signal generation, reception, and control equipment that is designed to provide cable service
which includes video programming and which is provided to multiple subscribers within a
community, but such term does not include:
(a) a facility that serves only to retransmit the television signals of one or more television
broadcast stations;
(b) a facility that serves subscribers without using any public rights-of-way;
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(c) a facility of a common carrier which is subject, in whole or in part, to the provisions
of Title II of the Communications Act of 1934, except that such facility shall be
considered a cable system to the extent such facility is used in the transmission of
video programming directly to subscribers.
(11) Channel means a portion of the electromagnetic frequency spectrum capable of delivering
both the audio and video portions of a television signal. At the time of enactment of this
franchise agreement, this capability generally requires a 6 MHZ capacity but that is subject
to changes in technology.
(12) City means the City of Round Rock, a Texas home -rule municipal corporation.
(13) City Council means the governing body of the City of Round Rock.
(14) City Manager means the chief administrative officer of the City or his designated
representative.
(15) City Requirements means all Charter provisions, ordinances, resolutions, laws, rules,
regulations, policies and directives of and of general application to the City of Round Rock,
currently in effect or hereafter adopted in the future by the City Council.
(16) Consumer Service Standards means the operational benchmarks established for the cable
system as described in any attached exhibits.
(17) Converter means an electronic device that converts cable channel frequencies not normally
receivable by some television sets to an appropriate channel which permits a subscriber to
view signals included in the service being delivered, according to a designated tuning or
channel selector.
(18) Control or Controlling Interest means actual working control in whatever manner
exercised.
(19) Days means calendar days unless otherwise specified.
(20) Direct Cost means all expenses associated with a specific activity or function, excluding
overhead.
(21) Educational Authorities shall mean those public or private school districts within the City,
and/or those colleges and universities operating within the City, whether operating
independently or in unison, in relation to the transmission or reception of programming
through the CATV system.
(22) FCC means the Federal Communications Commission.
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(23) Force Majeure means delays due to acts of God, war, civil disturbances, fire, unavoidable
casualty, or for other similar causes agreed to be beyond the control of Grantee.
(24) Franchise means this contract between the City and Grantee.
(25) Full Expanded Service shall mean the level of service received by a CATV system
subscriber for an additional charge over the Basic Service charge and which will allow for
the capability to receive all services being offered by Grantee with the exception of pay
television services or limited access services.
(26) Grande means Grande Communications, Inc., a Delaware corporation.
(27) Grantee means Grande Communications, Inc., a Delaware corporation.
(28) Grande's Facilities means Grande's cables, lines, wiring, towers, poles, underground
conduits, manholes, electronic conductors, and other fixtures necessary for the maintenance
and operation of Grande's cable television signal distribution system and service.
(29) Gross Revenue means and shall include any and all compensation or receipts derived by
Grantee from subscribers within the City from recurring monthly service charges in
connection with
(a) the transmission of audio and video cable service to subscribers including the
retransmission of broadcast signals, programming supplied on a per channel charge
basis, music services and cable on-line services,
(b) additional outlets,
(c) program guides, and
(d) converter rental,
but shall not include revenue from other "ancillary" or "auxiliary" services which include,
but are not limited to, advertising, leased channels, programming supplied on a per program
basis, installation fees, late charges, and commissions derived from home shopping channels,
and shall not include any refunds or credits made to subscribers or any sales tax imposed on
the services furnished by Grantee.
(30) Institutional Network (INet) Services means a private communication system as provided
for in Section 10 that connects certain institutional users.
(31) Normal Operating Conditions means service conditions which are within the control of
Grantee. Conditions which are ordinarily within the control of Grantee include: special
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promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods,
and maintenance or upgrade of the system, except for unscheduled or emergency equipment
replacement, testing required by the FCC or this franchise and cutovers performed in
connection with system construction. Conditions which are not within the control of
Grantee include but are not limited to: natural disasters, civil disturbances, power outages,
telephone system outages, programmer originated interruption, and atmospheric conditions.
(32) Person means a corporation, partnership, proprietorship, individual or organization or a
natural person or other business entity, excluding any governmental entity.
(33) Public, Educational, Governmental Access (PEG) Channel, or Access Channel means
the channel(s) on the cable system which are reserved for non-commercial public,
educational and governmental uses, in accordance with applicable law and with the rules and
procedures established by the City.
(34) Public Rights -of -Way means the surface, the air space above the surface, and the area below
the surface ofanypublic street, highway, lane, path, alley, sidewalk, boulevard, drive, bridge,
tunnel, easement or similar property in which the City holds any property interest or
exercises any rights of management or control and which, consistent with the purposes for
which it was acquired or dedicated, may be used for the installation and maintenance of a
cable system. A reference in the franchise agreement to any "public rights-of-way" shall not
be a representation or guarantee by the City that its interests or other rights in the property
are sufficient to permit its use for the installation and maintenance of a cable system and
Grantee shall receive only those rights which the City has the right and power to give.
(35) Residential Dwelling Unit means a home, house, building, or other structure that normally
accommodates the living quarters of one family, and an apartment, condominium, or co-
operative unit that normally accommodates the living quarters of one family in any multiple -
unit building or complex of multiple -unit buildings. If Grantee has not been granted the
authority by an owner or association of owners to extend its facilities to individual
apartments, condominiums, and co-operative units within the interior of such multiple -unit
buildings or complex of multiple -unit buildings, then any such multiple -unit building or
complex of multiple -unit buildings shall be considered a single residential dwelling unit.
(36) Service Interruption or Outage means a cable system malfunction resulting in the loss of
picture or sound on one or more channels affecting more than one subscriber and resulting
from the same cause. The definition of service interruption or outage affects the timing of
when Grantee must respond to a service problem.
(37) Standard Drop means a cable with a maximum length of 125 feet (125') that connects the
antenna terminal on a subscriber's radio or television set, computer terminal, or other
terminal, to the nearest feeder cable of the cable system.
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(38) Start-up Date means the date on which Grantee begins distributing television signals to any
customer through Grantee's facilities.
(39) Subscriber means a person within the City who lawfully receives cable service or other
services from Grantee or an affiliate.
(40) Survey means the current industry technical practices, range, and level of services existing
and planned, in the 100 largest cable systems in the U.S. for which franchises are renewed
or granted after the effective date of this franchise.
(41) Time Warner means a cable system operated within the city by Time Warner
Entertainment/Advance-Newhouse or any successor in accordance with the franchise last
granted or extended by Ordinance No. G -98-10-22-9A1.
(A)
(B)
SECTION 2.
FRANCHISE ISSUANCE COST
Prior to the effective date, Grantee shall pay the City as follows:
Grantee shall pay the City's full costs of newspaper publication, if any, associated with
adoption and granting of this franchise; and
Grantee shall pay and reimburse the City in an amount not to exceed One Thousand and
No/ 100 Dollars ($1,000.00) to partially offset costs and expenses incurred by the City for
legal fees in preparing and negotiating this franchise.
SECTION 3.
GRANT OF FRANCHISE
(A) Grant and Term of Grant.
The City grants, subject to Grantee's acceptance of the terms of this franchise and the City's
receipt of monetary compensation required in this franchise, to Grantee, for the term as
described in Section 4(A) herein, unless otherwise terminated under Section 21, the non-
exclusive right and privilege to have, acquire, construct, expand, reconstruct, maintain, use
and operate in, along, across, on, over, through, above and under the public rights-of-way of
the City, a cable system to provide cable service and related services.
(B) Limitation on Extent of Grant.
The City grants to Grantee such franchise only to the extent of the City's interest in the
public rights-of-way of the City. In granting this franchise, the City does not:
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(1) Warrant title to any City right-of-way to Grantee;
(2) Assume any responsibility for securing for Grantee any City right-of-way which the
City does not already own or control;
(3)
Give to Grantee any form of permission to make and maintain attachments to City
utility poles or to use any City property other than City rights-of-way;
(4) Make the City responsible in any way for the construction, operation, maintenance,
or performance of Grantee's facilities or for any other of its activities or obligations;
(5)
Convey to Grantee any ownership or property right in any City right-of-way occupied
or used by Grantee regardless of any payments made by Grantee to the City, nor any
other action or inaction by the City or by Grantee;
(6) Grant to Grantee any right or privilege lawfully within the jurisdiction of any other
regulatory body or agency; and Grantee shall secure and hold all necessary licenses,
permits and authorizations required in order to install, operate and maintain its
facilities;
(C) Non -Exclusive Nature of Grant.
This franchise is not exclusive. The City expressly reserves the unrestricted right to make
a similar grant to any person or entity at any time; provided, however, that any such
additional rights are granted on a competitively neutral basis with this franchise agreement.
For purposes of this franchise agreement, the term "competitively neutral," as used or
construed in the Federal Telecommunications Act of 1996 or any amendments thereafter,
shall not control the meaning of"competitive neutrality" as used in this franchise agreement.
SECTION 4.
FRANCHISE TERM AND REOPENER
(A) Term.
The term of this franchise shall take effect and be in force sixty (60) days from and after final
passage hereof, as provided by law, and shall continue in force and effect for a term of nine
years until the relevant date in 2011, subject however to reopener clauses as herein recited,
provided that within thirty (30) days after the date of final passage of this franchise ordinance
Grantee shall file with the City its unconditional acceptance of the terms of this agreement
and promise to comply and abide by all its provisions, terms, and conditions. Such
acceptance and promise shall be in writing duly executed and sworn to, by and on behalf of
Grantee, before a notary public or other officer authorized by law to administer oaths. In the
event that such instrument as aforesaid shall not be filed within the time required, the
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ordinance and the rights, privileges, and franchise as hereby granted shall ipso facto be, and
become, terminated, null, and void.
(B) Reopener.
(i) At such time as the City shall finalize the renegotiation of the franchise agreement
of Time Warner, the City shall have the exclusive right to reopen and renegotiate the
following terms or clauses contained in this franchise: (1) Section 1 - Definitions,
including but not limited to the definition of Gross Revenue; (2) Section 4 -
Franchise Term and Reopener; (3) Section 7 - Provision of Access Channel and
Access Support; (4) Section 8 - Service to Community Facilities; (5) Section 9 -
Community Programming Needs; (6) Section 10 - Provision of Institutional
Network; (7) Section 14 - Compensation to the City; (8) Section 15 - Accounts,
Records, Reports and Investigations; and (9) Section 16 - Assignment of Franchise.
Subject to reasonableness on the part of the City, the City has the exclusive right to
unilaterally modify each provision which has been reopened pursuant to this Section
4(B)(i) to the extent necessary in order that each provision be made consistent and
competitively neutral with any renewal franchise the City hereinafter grants to the
incumbent provider (Time Warner), and with other similarly situated cable service
providers. Under no circumstances, however, shall this Grantee be required to
provide more than three (3) PEG access channels. It is the City's intent to negotiate
provisions reopened under this Section 4(B) with the goal of accomplishing
competitive neutrality among all cable/broadband system providers franchised by the
City, and Grantee and the City each agree to actively negotiate in good faith to
accomplish this goal. For purposes of this franchise agreement, the term
"competitively neutral," as used or construed in the Federal Telecommunications Act
of 1996 or any amendments thereafter, shall not control the meaning of"competitive
neutrality" as used in this franchise agreement.
(ii) At such time as the City shall finalize the renegotiation of the franchise agreement
of Time Warner Cable, the City may reopen negotiations on any other provision of
this franchise not enumerated above in Section 4(B)(i), except for Section 4(A) Term,
Section 7 - Provision of Access Channel and Access Support and Section 10 -
Provision of Institutional Network, and amend the franchise to reflect such negotiated
changes; provided, however, that Grantee shall only be required to agree to changes
in such other provisions not enumerated above in Section 4(B)(i), other than Section
4(A) Term, Section 7 - Provision of Access Channels and Access Support and
Section 10 - Provision of Institutional Network, which do not materially adversely
affect Grantee's rights or materially increase Grantee's obligations hereunder. It is
the City's intent to negotiate provisions reopened under this Section 4(B)(ii) with the
goal of modernizing franchise language and/or procedures as appropriate, and
Grantee and the City agree to actively negotiate in good faith to accomplish this goal.
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(iii) Under no circumstances shall Grantee be required to accept any amendments to this
franchise which would require Grantee to change the network architecture,
technology or design, including bandwidth capacity as set forth herein, of Grantee's
cable/broadband system. The City may only so reopen negotiations and amend this
franchise pursuant to this Section 4(B) on one occasion. Also, under no
circumstances shall the City's right to reopen Sections 7 - Provision of Access
Channels and Access Support and Section 10 - Provision of Institutional Network,
of this franchise pursuant to Section 4(B)(i) be construed to be a change in network
architecture, technology or design.
SECTION 5.
FRANCHISE EXTENSION
(A) Extension.
This franchise may be extended by the City for one six-year extension of the term of this
franchise until the relevant date in 2017, upon application by Grantee pursuant to the
procedures established in this Section 5, and subject to the Cable Act, State of Texas and
applicable laws. In the event that extension procedure laws change during the term of this
agreement, Section 5(B) and Section 5(C) below shall be modified in accordance with those
changes.
(B) Notice of Intent to Extend.
Pursuant to the applicable laws which are in effect at the inception of this agreement, during
the six-month window between the thirty-sixth (36th) month and the thirtieth (30th) month
prior to the expiration of the initial term of this franchise, Grantee shall inform the City in
writing of its intent to seek extension of the franchise.
(C) Extension Prerequisites.
Grantee shall be entitled to the extension provided in Section 5(A) only if:
(1)
Grantee is in substantial compliance with the material terms and conditions of this
franchise;
(2) Grantee provides timely written notice to the City that it seeks the six-year extension
(and agrees not to give formal notice under 47 U.S.C. 546(a), before this time);
(3) Grantee's system is capable of providing new services that are offered in other cable
systems of comparable size as Grantees or offered by Grantee in its other services
to comparable areas;
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(4) If Grantee timely notifies the City of its intention to extend, the City Council shall,
after public notice, proceed to determine whether: (a) Grantee has substantially
complied with the material terms of its existing franchise; (b) the quality of Grantee's
service has been adequate, with "quality" meaning signal quality, customer service,
billing practices and channel capacity; (c) Grantee's extension proposal is reasonable
in light of the community's cable -related needs and interests, taking into account the
cost of meeting those needs and interests; and (d) whether the operator is legally,
technically, and financially qualified to fulfill its extension proposal. To determine
satisfactory performance, the City Council shall consider technical developments and
performance of the system, and any other particular requirements set out in this
agreement.
(5)
Provided Grantee has timely given the City notice of its intent to extend, only upon
a finding that Grantee's performance is not satisfactory based upon the procedures
and factors set forth in this section, may the City Council deny Grantee's franchise
extension request.
(D) Grantee shall not allow the use of its system by another entity to provide any service, unless
the entity warrants that it has obtained all the authorizations required by the City in order to
provide the service. Grantee or affiliates shall not install or construct facilities within public
rights-of-way for services that are not authorized by this franchise, by applicable law, or by
another franchise.
(E) This franchise does not authorize Grantee to attach any part of its system to the City -owned
conduits or facilities until Grantee has entered into a separate agreement with the City,
supported by independent consideration, for the rights of attachment or use.
(F) Any other franchise granted or renewed by the City allowing cable and other services shall
be on a competitively neutral basis as to material terms and conditions of the franchise.
SECTION 6.
SERVICE AVAILABILITY
(A) Upon completion of construction of the system consistent with 47 U.S.C. §541 (a)(3) and
(4)(A), Grantee shall construct, operate, and maintain the system to make cable service and
other services distributed over the system available to any person living in the City at the
time of the request under the terms of Section 6(B). Service provided on a test basis, along
with new cable service or other services, may be introduced on a phased basis in different
areas of the City over a period not exceeding two years.
(B) After completion of the system, Grantee shall extend its cable system and make services
available to every existing residential area within the City whenever density of at least thirty
(30) residential dwelling units per cable mile is realized, as measured from the existing
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facilities of Grantee's cable system in the City. For purposes of this section, density per cable
mile shall be computed by dividing the number of residential dwelling units in the area by
the length, in miles or fractions thereof, of the total amount of aerial or underground cable
necessary to make service available to units according to Grantee's system design parameters.
The cable length shall be measured from the nearest point of access to the then -existing
system, provided that extension is technically feasible from that point of access, and located
within the public rights-of-way. The total cable length does not include the drop cable
necessary to serve individual subscriber premises.
(C) Neither Grantee nor any affiliate shall unlawfully discriminate, nor permit discrimination,
regarding the availability of cable or other services, or in the rates, terms and conditions
thereof. Grantee and each affiliate shall ensure that access to cable service or other services
is not denied to any group of potential subscribers because of the income level of the
residents in the area where the group resides, or geographic location. It is the right of all
subscribers to continuously receive all available cable service and other services so long as
financial and other obligations to Grantee are honored. Grantee shall continuously monitor
the implementation of the commitments set forth in this section.
(D) Grantee shall extend its cable system to provide cable service and other services to every
residence or business to which Grantee is not otherwise required to extend its system under
Section 6(B) where the potential subscriber agrees to pay the direct costs of labor and
materials used in constructing the extension.
SECTION 7.
PROVISION OF ACCESS CHANNEL AND ACCESS SUPPORT
(A) Access Channel.
Grande shall provide the following access channel capacity in the following manner:
Government Channel: One channel shall be made available for use by the City of Round
Rock at no cost to the City. Such channel shall be designated as "Channel 10," shall have
the same channel placement on each cable system, and shall remain so designated for the
entire term of this franchise agreement.
The access channel delineated herein shall be made available to the authorized government
user at no cost. Within sixty (60) days of the date on which Grantee's network construction
has progressed to within two hundred feet (200') of the origination point, Grantee shall
provide all electronics and connections to begin broadcasting on such channel.
Control over the content of the programming transmitted over the access channel by Grantee
shall be limited to that level which is authorized by the Cable Act and/or the FCC now or
hereinafter during the length of the franchise terms.
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The City Council shall reserve the right to establish and appoint a Citizens Committee or
committees to advise on the utilization of the government access channel.
(B) Rights to Access Programming.
(1) Grantee shall have no rights to access channel programming by virtue of cablecasting
or distributing such programming over its cable system, except for Grantee's right
to transmit the programming to all the subscribers receiving a signal from the cable
system headend serving the City.
(2) Rights to programming content and intellectual property transmitted by Grantee shall
remain the property of the owner, regardless of the person requesting transmission.
No intellectual property transmitted over access channels or bandwidth shall be
retransmitted by Grantee or affiliates in whole or in part without consent of its owner.
(3)
Grantee's rights over any video signal and/or data made available by the City shall
be limited to the programming component.
(C) Demographics Research.
Grantee shall promptly provide to the City any viewership and demographic information
obtained regarding access channels and programming. Grantee shall also promptly provide
subscriber survey results and analysis regarding access programming conducted by or at
Grantee's request. Grantee may redact any information tending to identify the subscriber or
any other programming services not listed before delivering to the City. Any information
provided to the City is subject to the provisions listed in Section 15 - Accounts, Records,
Reports and Investigations.
(D) Use of Public, Educational and Governmental (PEG) Channels.
(1)
The City shall have the authority to use the access channels for educational and
governmental purposes, the individual expression of its residents, and the
identification of sponsors and underwriters. No restrictions may be placed on the use
of the access channels when used for these purposes unless provided in this franchise.
(2) Grantee has no editorial authority over the content of access programming. However,
Grantee shall have control limited to the placement of programming and packaging
of video signals or data made available by the City.
(3) Grantee shall not intentionally interrupt any access channel signal at its headend or
hub sites without prior consent of the City.
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(E) City's Election of an Alternative to the Provision of Access Channels and Access Support.
(1) In the event that the City has granted multiple cable franchises and deems that
requiring additional access channels and/or access support from a newly franchised
cable operator or a newly extended or a renewed cable operator is unwarranted,
discriminatory, or places one cable operator at a competitive advantage over another,
the City may require at its sole discretion payment of monetary remuneration in lieu
of the requirements for the provision of access channels and access support.
(2) The purpose of such payment to the City is not to impose additional franchise fees
and costs on Grantee, but to ensure competitive neutrality between the providers of
access channels and access support.
(3)
The amount of remuneration paid to the City shall be the equivalent to the average
direct cost of the access channels and access support requirements to cable operators
in the City under this section or under analogous sections of other cable operator's
respective franchise agreements. Such remuneration shall be based upon the
percentage of the total number of cable subscribers served by Grantee within the
corporate limits of the City.
(4) If Grantee does not agree that the amount calculated by the City is a competitively
neutral and non-discriminatory alternative to requiring Grantee or an affected cable
operator to provide access channels and access support requirements under this
section, then Grantee and the City shall attempt to resolve the matter through
mediation to determine an appropriate amount.
SECTION 8.
SERVICE TO COMMUNITY FACILITIES -- INSTALLATION AND
MAINTENANCE OF SERVICE CONNECTIONS IN PUBLIC BUILDINGS
Services provided under this Section 8 may not be resold or used for commercial purposes.
(A) Public, Primary and Secondary Schools.
(1)
Grantee shall provide one service connection, including cable television and/or
interne service, to each primary and secondary school as may be now or hereinafter
designated by the City Manager or his agent. The connection will include service at
the basic service level, a converter (if needed), and will be serviced by Grantee.
(2) Grantee shall provide to the primary or secondary school, at the request of the City
Manager or his agent, the appropriate interface to the cable system at Grantee's
direct cost. However, to receive cable service or other services the school must
ensure the internal video distribution system will comply with FCC signal leakage
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(3)
and signal quality standards, and will not interfere or adversely affect the cable
system (including upstream capacity).
Grantee may not charge for cable service or other services on additional outlets
unless the charge is one imposed on Grantee by a program supplier, or is a charge for
equipment used in providing additional connections.
(4) Grantee shall provide each school receiving cable service a free connection to its on-
line internet service for personal computers during the school year, if offered. This
connection shall also include one free modem, and additional modems provided at
Grantee's direct cost. If additional modems are purchased, Grantee will provide
access to the online service to such modems at no charge during the school year.
(5)
Grantee will sponsor one workshop to educate and grant "hands-on" training to
teachers about the use of its online service.
(B) Public Institutions of Higher Education.
Grantee shall provide one service connection, including cable television and/or internet
service, to each campus of a public institution of higher education operating within the City
as may be now or hereinafter designated by the City Manager or his agent. The connection
will include service at the basic service level, a converter (if needed), and will be serviced
by Grantee.
(C) City Facilities.
(1)
Grantee shall provide one service connection, including cable television and/or
internet service, to each municipal facility owned or operated by and located in the
City as may be now or hereinafter designated by the City Manager or his agent. The
connection will include service at the basic service level, a converter (if needed), and
will be serviced by Grantee.
(2) At the City's request, Grantee shall provide at its direct cost internal video
distribution system hardware and installation services. Grantee will also provide the
appropriate interface to the cable system if the City ensures that the internal video
distribution system will comply with FCC signal leakage and signal quality
standards, and will not interfere with or adversely effect the cable system (including
upstream capacity).
(3)
Grantee may not charge for cable service on additional outlets in the City's facilities
unless the charge is one imposed on Grantee by a program supplier, or it is a charge
for equipment used in providing additional connections.
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(D) All such service connections shall be provided to buildings as designated by the City
Manager or his agent within two (2) months of the date service is available to such building.
(E) No charge will be made by Grantee for the installation, disconnections or reconnections
(when reasonably requested), monthly services, and/or maintenance of equipment on any
service connection authorized herein. A converter to provide the capability of receiving all
services except "Pay Television" shall be provided to each location at no cost.
(F) Grantee shall install and maintain return (upstream) full -channel transmission capability in
each public and/or private school building when requested by the City Manager or his agent.
(G) Grantee shall install and maintain return (upstream) audio and/or video transmission
capability in any governmental building or facility as may be now or hereinafter designated
by the City Manager or his agent, at no cost to the City.
(H) Connection to Community Facilities in the Event of Multiple Cable Franchises.
The City will use its best efforts to distribute the responsibility for community facility
connections, services, and equipment among all holders of cable franchises granted by the
City in a non-discriminatory and competitively neutral manner. The City shall have the
exclusive right to assign the responsibilities required by this Section 8 in a manner that it
determines meets the best interests of the community. If a cable operator alleges in writing
a specific violation of this provision, the City shall respond in writing no later than the
thirtieth (30th) day after receipt of the complaint.
SECTION 9.
COMMUNITY PROGRAMMING NEEDS
(A) Grantee agrees to provide programming responsive to the Round Rock community's needs
and/or interest for Spanish language programming. If justified, this programming shall
consist of at least two Spanish language channels.
(B)
(C)
The parties expressly agree that the programming described in this section represent broad
categories of video programming as provided by 47 U.S.C. 544(b)(2)(B).
Grantee shall retransmit all closed -captioned signals received with programming to facilitate
viewing by handicapped persons; and shall maintain all necessary equipment to make second
audio programming (SAP) features available to subscribers, except on customers' premises.
SECTION 10.
PROVISION OF INSTITUTIONAL NETWORK
(A) Cap on Grantee's Expenditures.
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Grantee's total expenditures hereunder are capped not to exceed Two Hundred Fifty
Thousand and No/100 Dollars ($250,000.00) for provision of the following:
(B) Required Grantee Contributions for INet Services.
(1) Grantee shall provide INet services in accordance with this Section 10 to designated
buildings within the City of Round Rock.
(2) These INet services shall include:
(3)
(a) acquisition, installation and provisioning of required system electronics;
(b) installation of any other system connections and electronics required to
provide the desired bandwidth upon the request of the City Manager; and,
(c) providing INet services to all governmental entities and public institutions of
higher learning operating within the City by installing one physical system
connection at designated buildings of the users as requested by the City
Manager.
Grantee's INet service commitment will consist of a minimum of 1 Mbps of
bandwidth per personal computer owned and operated by the City within the City
buildings indicated in Attachment A throughout the system, as designated by the
City Manager or his designee. Grantee shall plan for and continue providing this
bandwidth capacity throughout the Grantee's service area for the uninterrupted use
of the City users as the network continues to expand. Grantee will provide the same
standard of bandwidth capacity as the system expands.
(4) Grantee shall provide continuous monitoring and testing from Grantee's system
control center for all system electronics installed for City users.
(B) Additional Grantee Contribution for INet Services.
(1)
Grantee shall provide the INet with a turn -key installation of a system link to the
Round Rock Independent School System with a minimum bandwidth capacity on the
link of 45 Mbps.
(2) Grantee shall also be responsible for acquiring, installing and provisioning the system
electronics required to provide the designated City locations with the bandwidth
requested.
(3)
The labor and material cost of extending Grantee's system to the designated
institutional users' locations under this subsection shall be computed at Grantee's
direct cost plus twenty percent (20%).
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(4) The labor and material cost of activating requested electronics at the designated City
users' locations under this subsection shall be computed at Grantee's direct cost plus
twenty percent (20%).
(5)
Maintenance of the INet system shall be computed at Grantee's direct cost only.
(C) Standards for INet Services.
(1) The City shall be notified as Grantee activates subparts of the system so that it may
exercise the rights provided under this Section 10.
(2) INet services shall be provided with a benchmark of reliability at 99.5%, and a
benchmark of accuracy at a 10 bit error rate for data signals, excluding external
factors such as end user equipment. Grantee shall not be penalized for failing to meet
the benchmarks of this subsection if:
(3)
(a) Grantee complies with all other INet technical performance standards; and,
(b) Grantee works in good faith with the City to meet the bit error rate.
Grantee shall ensure that video signals arriving at the switching point for insertion
into the distribution channels meet all FCC standards and maintain a minimum of
46dB carrier -to -noise ratio, excluding any external factors such as end user
equipment. Grantee shall not be penalized for failing to meet the benchmarks of this
subsection if:
(a) Grantee complies with all other INet technical performance standards; and,
(b) Grantee works in good faith with the City to meet the carrier -to -noise
standards.
(4) Grantee shall consult with the City to explore the feasibility of providing remote
"read-only" access to installed Grantee network management systems by technical
personnel to assist institutional users in diagnosing and isolating system connectivity
problems.
(5)
The INet services shall only be used for non-commercial educational and
governmental purposes and for public access channels. The institutional network
shall not be extended to any other location except as specifically permitted by this
franchise.
(6) Grantee's obligations under this section do not include day-to-day management of
the connecting locations.
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(D) Maintenance.
(1) Grantee shall provide on-going maintenance on all Grantee -provided INet cable plant
and system electronics on a twenty-four hour per day/seven day per week basis at no
cost to the City or other institutional users.
(2) Grantee will provide the City and other institutional users with a toll-free number for
reporting INet system outages and maintain a written record of all service calls. All
reported INet problems will be referenced by sequential numbered trouble ticket.
(3)
Grantee must formally respond to all reported INet problems within one hour of
receipt of a trouble call from an institutional user, and provide an estimated "time -to -
repair." Actual "time -to -repair" may vary depending on severity of service disruption.
(E) Interconnection.
(1) Grantee shall allocate a direct fiber connection:
(a) between Grantee's system and the individual major system control points
of each City building; and,
(b) to the outlying designated remote locations of each City user as requested
by the City Manager.
(c) to future City locations as designated by the City Manager.
(2) The capital cost of providing interconnection shall be debited against the capital
amounts specified in Section 10(B) above.
(F) The City shall agree to make space available in reasonable proximity to City buildings for
Grantee's installation of RDT and optical node units to support optimal INet operation, with
such available space in proximity to City buildings being designated as is reasonable and as
designed with the prior approval of the City Manager or his designee.
(G) Non-discriminatory and Competitively Neutral Treatment.
In the event there are multiple franchised cable operators in the City, the City will use its best
efforts to insure that the distribution of connected and equipped City users among the cable
operators and the financial obligations imposed under this Section 10 are done in a non-
discriminatory and competitively neutral manner. (i.e. the number of connected locations
by each cable operator is generally proportionate to each provider's share of the cable
customers in the City, or each provider is obligated for services of proportionate value). If
a cable operator alleges in writing a specific violation of this provision, the City shall
respond in writing no later than the thirtieth (30th) day after receipt of the complaint.
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(H) City's Election of an Alternative to the Institutional Network.
(1) In the event that the City has granted multiple cable franchises and deems that
requiring additional an additional INet or INet capacity from a newly franchised cable
operator or a newly extended or a renewed cable operator is unwarranted,
discriminatory, or places one cable operator at a competitive advantage over another,
the City may require at its sole discretion payment of monetary remuneration in lieu
of the institutional network requirements required under Section 10.
(2) The purpose of such payment to the City is not to impose additional franchise fees
and costs on Grantee, but to ensure competitive neutrality between the providers of
institutional networks.
(3)
The amount of remuneration paid to the City shall be the equivalent to the average
direct cost of the institutional network requirements to cable operators in the City
under this Section 10 or analogous section of other cable operator's respective
franchise agreements. Such remuneration shall be based upon the percentage of the
total number of cable subscribers served by Grantee within the corporate limits of the
City.
(4) If Grantee does not agree that the amount calculated by the City is a competitively
neutral and non-discriminatory alternative to requiring Grantee or an affected cable
operator to construct and maintain an institutional network under this Section 10,
then Grantee and the City shall attempt to resolve the matter through mediation to
determine an appropriate amount.
SECTION 11.
CONSTRUCTION OF SYSTEM
(A) Grantee shall provide a build -out plan, including INet construction, as described in Section
11(B). The build -out plan shall be delivered to the City Manager no later than three (3)
months prior to the initiation of construction.
(1) The City Manager will review, and if no changes are necessary, the build -out plan
will be approved no later than the thirtieth (30th) day after receipt by the City
Manager. The build -out plan is deemed approved if the City does not respond on or
before the thirtieth (30th) day after receipt.
(2) Failure to deliver the build -out plan in accordance with this Section 11 shall be a
material breach.
(B) Build -out Plan.
(1)
Grantee's build -out plan shall set forth construction activity and completion dates for
any phase of the build -out plan. Failure to comply with each completion date and/or
each sequence shall constitute a material breach of this franchise.
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(2) The build -out plan must include a separate updated map of the City showing phases
of construction in the City, with completion dates for each phase.
(3)
Grantee must submit an updated construction schedule to the City Manager on a
quarterly basis until the completion of the construction.
(4) The construction shall be completed on or before forty-eight (48) months of the date
of initiation of construction, unless the schedule for completion is amended in
accordance with the terms of this franchise.
(C) Completion of Build -out.
(1)
No less than thirty (30) days prior to completion of the system construction, Grantee
shall notify the City Manager that the system is substantially complete.
(2) The City Manager and Grantee shall arrange for such inspections as shall enable the
City Manager to ascertain whether the system has been completed as scheduled.
(3) The City Manager shall accept the completion when the system is tested and
demonstrated fully operational, with test results consistent with industry standards.
(4) No later than 120 days after completion of the build -out, Grantee shall submit to
the City Manager a certification that Grantee has finished its build -out plan.
(5) Grantee shall submit to the City, in written and in computer form, "as built" maps
for the entire system as constructed when completion is accepted by the City.
(D) General Requirement.
Grantee agrees to comply with each of the terms set forth in this section, this franchise and
all City ordinances governing construction and technical requirements for the system, in
addition to any other City requirements or procedures the City Manager requires in
accordance with this franchise.
(E) Quality.
Grantee shall perform the construction, operation, maintenance, and repair of the system in
a safe, thorough and reliable manner using materials of good and durable quality. If the City
or any other agency or authority of competent jurisdiction determines that any part of the
system is harmful to the health or safety of any person, then Grantee shall promptly correct
the conditions identified at its own cost and expense.
(F) Technical Specifications of System.
Grantee shall install underground and/or aerial cables and wires in a manner consistent with
the City's requirements and in compliance with all applicable laws, ordinances, and safety
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requirements including but not limited to the Federal Communications Commission, Federal
Aviation Administration, National Electric Code, National Electric Safety Code, National
Cable Television Association Standards of Good Engineering Practices, American Telephone
& Telegraph Construction Procedures (Blue Book).
(1) Grantee shall comply with all applicable federal, state and City laws, rules,
regulations, codes, and other requirements in constructing the cable system.
(2) The installation of cables, wires, or other component parts of the system in structures
shall be undertaken in a manner which does not interfere with the operation of other
signal distribution systems in a given structure, including conduit used in connection
with other systems.
(3)
For the purpose of routine maintenance, repair, connection, installation, or
disconnection, system cabling and wiring in structure shall be accessible from the
"tap side" in a public hallway, roof, basement, stairwell, outside wall or other public
area in a structure, unless otherwise agreed upon with the building owner.
(4) Grantee must comply with, and shall ensure that its subcontractors comply with, all
City requirements.
(5)
If the installation, construction or operation of the cable system does not comply with
this franchise and all City requirements, including any consumer service standards
set forth herein, Grantee must, at its sole cost, bring its cable system into compliance
this franchise and all City requirements.
(G) Grantee agrees to abide by all other benchmarks set forth in the build -out plan.
SECTION 12.
CONDITIONS OF FACILITY CONSTRUCTION
(A) Requirement to Attach.
Grantee may be required by the City to attach portions of its facilities to poles or duct trench
space maintained by any other person franchised by the City. However, Grantee may be
exempt from the requirement if it can be shown to the City's satisfaction that:
(1)
Grantee shall be subjected thereby to increased risks of interruption to its service or
to increased liability for accidents;
(2) this requirement will unreasonably delay construction or availability of service;
(3)
the facilities of such other person are not of the character, design, and construction
required by, or are not being maintained in accordance with current practice; or,
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(4) such poles or duct trench space are not available to Grantee on reasonable terms,
including without limitation a reasonable fee.
(B) No later than the thirtieth (30th) day after written notice is sent by the City, Grantee shall at
its own expense temporarily or permanently remove, relocate, change or alter the position
of any part of its cable system or other of its facilities that are within the public rights of way
if the City determines that the removal, relocation, change or alteration is reasonably
necessary for:
(1) the construction, repair, maintenance or installation of any City or other public
improvement in, on, over, or under the public rights of way; and/or,
(2) the operations of the City or other governmental entity in, on, over, or under the
public rights-of-way.
SECTION 13.
CONSUMER SERVICE STANDARDS
Grantee agrees to abide by all FCC consumer service standards.
SECTION 14.
COMPENSATION TO THE CITY -- FRANCHISE FEE
(A) General Compensation as Annual Franchise Payment.
The City Council finds that the public rights-of-way to be used by Grantee in the provision
of services within the boundaries of the City are valuable public properties, acquired and
maintained by the City at great expense to its taxpayers. The grant of the use of the public
rights-of-way are valuable property rights without which Grantee would be required to invest
substantial capital in right-of-way costs and acquisitions. Grantee agrees to pay to the City
as general compensation during each year of this franchise, a franchise fee consisting of four
percent (4%) of Grantee's gross revenue derived within the City. Any other franchise
granted by the City to a similarly -situated service provider for services allowed herein shall
be granted on a competitively neutral basis.
In consideration of the terms of this franchise, Grantee shall pay annually to the City a sum
equal to four percent (4%) of the gross annual revenues of the cable/broadband system,
including all internet services, including internet access services. Such payment shall be in
addition to and shall not be construed as payment in lieu of personal or real property taxes
levied by the City. To the extent that Grantee receives revenue from a subscriber for multiple
services that are provided for a fixed price, and revenue for some but not all of such services
is includable in the computation of gross annual revenues for purposes of calculation of the
franchise fee due hereunder, Grantee shall allocate the appropriate portion of such revenue
for inclusion in gross annual revenues. In the event such fixed price for such multiple
services is lower than the aggregate of the prices of those services if each service is
24
purchased individually, then the amount of the revenue to be allocated to each service shall
be proportional to the individual price of such service compared to the aggregate of the
individual prices of such services when purchased individually.
It is recognized that the four percent (4%) franchise fee herein is within the five percent (5%)
established in conformance with the current FCC Rules. In the event that the FCC shall
modify such Rules so as to eliminate or alter in any fashion the franchise fee limitation, or
in the event that such five percent (5%) franchise fee limitation shall be eliminated or altered
by judicial determination, the City reserves the right to renegotiate the amount of the fee.
(B) Prepayment of Franchise Fees.
As a condition precedent to the execution of this franchise agreement by the City, Grantee
will agree to pay to the City an advance payment of its franchise fees in the amount of One
Hundred Thousand and No/100 Dollars ($100,000.00), payable over the first three-year
period of the term of this franchise agreement at the payment rate of Twenty Thousand and
No/100 Dollars ($20,000.00) the first year, Thirty Thousand and No/100 Dollars
($30,000.00) the second year, and Fifty Thousand and No/ 100 Dollars ($50,000.00) the third
year, with each payment being due and payable on or before January 1, and with each
payment being an advance prepayment of franchise fees. These advance payments shall be
credited against Grantee's franchise fee payments due the City. Such credits shall be taken
in the amount equal to one hundred percent (100%) of franchise fees due each year until this
prepayment fund is exhausted. The credits will include a calculation of the rate of return on
the standard rate utilized, and realized, by the City. Should Grantee default and fail to install
and operate a cable system, in accordance herewith, then Grantee specifically agrees that
these prepayments shall be retained by the City as liquidated damages.
(C) Calculation and Payment on a Quarterly Basis of Annual Franchise Fee.
The payment due to the City as is required in Section 14(A) above shall be computed and due
quarterly, based on Grantee's fiscal year. Grantee shall file with the City, within forty-five
(45) days after the expiration of each of Grantee's fiscal quarters, a financial statement
clearly showing the gross annual revenues received by Grantee during the preceding quarter,
and such other information as may be required by the City Manager to provide reasonable
verification of gross revenues and of franchise fees. Payment of the quarterly portion of the
franchise fee shall be payable to the City at the time such statement is filed.
Grantee shall pay to the City each calendar quarter of the franchise term four percent (4%)
of gross revenue, referred to as the "Quarterly Payment." Payments shall be made to the
office designated by the City Manager by 12:01 p.m. on or before the forth -fifth (45th) day
following the close of the calendar quarter for which the quarterly payment is calculated.
Any necessary prorations shall be made.
(D) The compensation set forth in this section is in addition to all special assessments and taxes,
including, but not limited to, ad valorem taxes, street cut permits, inspection fees and
assessments for recovery of costs incurred by the City.
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(E) For any quarterly payment made after 12:01 p.m. on the date due, Grantee shall pay a late
payment charge of the greater of:
(1) One Hundred and No/ 100 Dollars ($100.00); or,
(2) simple interest at ten percent (10%) annual percentage rate of the total
amount past due.
(F) Payment of money under this Section 14 does not limit or impair the privileges or rights of
the City, whether under this franchise or otherwise. Acceptance of payment shall not be
construed as an agreement that the amount paid is correct, nor will it be construed as a
release of any claim which the City may have.
(G) Grantee shall file not later than the ninetieth (90th) day after the close of Grantee's fiscal
year, an annual report prepared and audited by a certified public accountant, clearly showing
the gross revenues for that year attributable to Grantee's system pursuant to this franchise.
The statement must contain a detailed classification of gross revenues and uncollectible
accounts for the year in a form prescribed by the City Manager after consultation with
Grantee. Extension of the 90 -day period for up to thirty (30) additional days may be granted
by City upon request by Grantee.
(H) Any transaction or arrangement that circumvents payment of franchise fees, or results in non -
collection of revenue due to Grantee for the delivery of cable service or other services, is
prohibited. This includes, by way of illustration and not limitation, failing to collect or report
gross revenue, collection of gross revenue by a third party, or bartering cable service or other
services.
(I)
The City shall have the right to inspect Grantee's income records, the right of audit and the
recomputation of any amounts determined to be payable under this franchise; provided,
however, that such audit shall take place within forty-eight (48) months following the close
of each of Grantee's fiscal years. Any additional amount due to the City as a result of the
audit shall be paid within thirty (30) days following written notice to Grantee by the City,
which notice shall include a copy of the audit report. The cost of said audit shall be borne
by Grantee if it is properly determined that Grantee's annual payment to the City for the
preceding year is increased thereby by more than one percent (1 %).
SECTION 15.
ACCOUNTS, RECORDS, REPORTS AND INVESTIGATIONS
(A) Grantee shall provide, no later than the tenth (10th) day after receipt of a written request by
the City, information as to all matters in connection with or affecting the construction,
reconstruction, removal, maintenance, operation and repair of Grantee's system and any other
facilities in the public rights-of-way. The City shall extend the time for provision of such
information upon a reasonable showing by Grantee that such extension is justified.
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(B) Grantee shall keep complete and accurate books of accounts and records of its business and
operations pursuant to this franchise in accordance with generally accepted accounting
principles. After consultation with Grantee, the City Manager may require the keeping of
additional records or accounts which are reasonably necessary for purposes of identifying,
accounting for, and reporting gross revenue and uncollectible accounts for purposes of
Section 14. To the extent practicable, Grantee shall keep its books of accounts and records
in a manner that identifies revenues by type within the City.
(C) In order to determine the gross revenue received by Grantee which is subject to franchise fee
in accordance with Section 14, Grantee agrees that on the same date that payment is made,
it will file with the City Secretary a sworn copy of a report prescribed by the City Manager.
The report shall itemize revenues comprising gross revenue. Without limitation on the
discretion of the City Manager to require additional information, this report shall:
(1) incorporate a statement reflecting the market value of all "trade" revenue (revenues
from exchanges or barter which do not involve monetary compensation); and,
(2) show all local, regional and national advertising revenue allocated to the operation
of the system in the City, if applicable.
(D) Except as otherwise provided herein, the City may, at its own expense, have the books and
records of Grantee examined by a City representative to verify accuracy.
(E) Grantee shall report to the City Manager on a quarterly basis in accordance with this
franchise agreement. The City Manager may require Grantee to report to the City other
information relating to this franchise. Grantee shall comply with the City's reasonable
requirements for forms and reports, the time for reports, the frequency with which reports are
to be made, and whether reports are to be made under oath.
(F) No later than the twelfth (12th) day after the City Manager's written request, Grantee shall
make available to the City, in Round Rock during regular business hours, its books and
records. The City Manager may examine, audit, review or obtain copies of the papers,
books, accounts, documents, maps, plans and other records of Grantee pertaining to gross
revenue derived by Grantee and affiliates from the operation of the system to verify the
accuracy of payments under Section 14. Grantee shall fully cooperate in making available
its records and otherwise assisting in these activities. The City shall extend the time for the
provision of such information after a reasonable showing by Grantee that such extension is
justified.
(G) The City Manager may, at any time, make inquiries pertaining to Grantee's performance of
the terms and conditions of this franchise. Grantee shall respond to such inquiries within
twenty-one (21) days.
(H) Grantee shall provide the City with notices of all petitions, applications, communications and
reports submitted to or received from Grantee or affiliates to the FCC, Securities and
Exchange Commission and the Public Utility Commission (PUC), or their successor
agencies, relating to matters affecting the use of the City's public rights-of-way or the
operation of the cable system authorized by this franchise no later than the twenty-first (21st)
27
day after Grantee's submission or receipt. Upon written request of the City, Grantee shall
provide the City Manager with copies of all such documentation.
(I) Grantee shall provide the City on or before January 31st of each year of the franchise a
written accounting of all funds expended under Section 10 - Provision of Institutional
Network.
(J) The City will maintain confidentiality of information provided by Grantee to the extent
permitted by law if Grantee has notified the City of the confidential nature of the information
and clearly marked such information as confidential. The City will provide Grantee copies
of requests made under the Texas Public Information Act pertaining to such information and
any related referrals to the Texas Attorney General.
SECTION 16.
ASSIGNMENT OF FRANCHISE
(A) All of the rights and privileges and all of the obligations, duties, and liabilities created by this
franchise shall pass to and be binding upon the successors of the City and the successors and
assigns of Grantee; and the same shall not be assigned or transferred without the written
approval of the City Council, which approval shall not be unreasonably withheld; provided,
however, that this Section 16 shall not prevent the assignment of the franchise by Grantee
as security for debt without such approval; and provided further that transfers or assignments
of this franchise between any parent and subsidiary corporation or between entities of which
at least fifty percent (50%) of the beneficial ownership is held by the same persons, persons,
or entities, shall be permitted without the prior approval of the City Council.
SECTION 17.
VIOLATIONS
(A) If Grantee is in violation of this franchise, the City Manager or designee shall notify Grantee
in writing of the violation setting forth the nature of such violation. Grantee shall respond in
writing no later than the twenty-first (21st) day (or such longer period as authorized by the
City Manager) after receiving notice:
(1) that the violation has been cured;
(2) by providing a cure plan or schedule that satisfies the City Manager; or
(3) by providing an explanation with documentation to support that the alleged violation
did not occur.
(B) Notwithstanding Section 17(A), Grantee shall have thirty (30) days from the date the notice
is delivered by the City to cure violations. If the nature of the violation is such that it cannot
be fully cured within thirty (30) days due to circumstances not under Grantee's control, the
period of time in which Grantee must cure the violation shall be extended by the City
Manager in writing for such additional time reasonably necessary to complete the cure,
provided that (i) Grantee has begun promptly to cure, and (ii) Grantee is diligently pursuing
its efforts to cure in the City Manager's reasonable judgment.
28
(C) If a violation has not been cured within the time allowed under Section 17(B), Grantee shall
be liable for liquidated damages for the following violations:
(1) Failure to promptly provide data, documents, reports or information to the City, in
accordance with Section 15: $250 per day, for each day such failure continues.
(2) Failure to provide an access channel in accordance with the guidelines in Section 7:
$300 per day for each day in violation.
Failure to substantially comply with a material requirement of any attached exhibits:
$200 per day for each day such failure continues.
(D) Grantee agrees that each of the preceding failures shall result in injuries to the City and its
citizens and institutions, the compensation for which would be difficult to ascertain and to
prove. Accordingly, Grantee agrees that the foregoing amounts are liquidated damages, not
a penalty or forfeiture, and are within one or more exclusions to the term "franchise fee"
provided by federal law at 47 U.S.C. 542 (g) (2) (A -D) and not part of the compensation paid
to the City under Section 14.
(E) If the City receives evidence that violations of this franchise, provisions of the City charter,
or the ordinances regulating Grantee in the construction and operation of its system have
occurred, or continue to occur after the thirty (30) day period and any additional time
necessary to cure, the City may investigate. If it is found that a violation continues to exist
or has occurred, then the City or Grantee may take action authorized by law, including
forfeiture of this franchise and a suit in court to compel compliance. The non -prevailing party
shall pay the reasonable expenses incurred by the prevailing party in the proceeding, along
with all damages and costs (including attorney fees). However, Grantee may be allowed,
either by the court in the judgment of forfeiture or by order of the City Council, a reasonable
time thereafter to correct the default and pay such expenses, damages and costs as it may be
adjudged to pay. If Grantee complies, forfeiture shall not become effective nor be enforced.
(F) Failure by the City or Grantee to enforce rights under this franchise does not constitute a
waiver of the rights.
(3)
SECTION 18.
INSURANCE
(A) Grantee shall obtain and maintain in full force and effect throughout the term of this
franchise agreement insurance with an insurance company licensed to do business in the
State of Texas and acceptable to the City Attorney. The insurance company must be rated
A -VII or better by A.M. Best or A or better by Standard and Poors. Grantee shall provide
the City with proof of the insurance at the time of filing of the acceptance of franchise. The
City reserves the right to review insurance requirements during the effective period of the
franchise, and to reasonably adjust insurance coverage and limits, generally applicable to all
similarly situated franchise holders, when deemed necessary and prudent by the City, based
upon changes in statutory law, court decisions, or the claims history of the industry or
Grantee.
29
(B) Subject to Grantee's right to maintain reasonable deductibles in such amounts as are
approved by the City, Grantee shall obtain and maintain in full force and effect for the
duration of this franchise, at Grantee's sole expense, insurance coverage in the following type
and minimum amounts:
Type and Amount
(1) Workers' Compensation and statutory Employers Liability in the minimum amount
of $100,000/$500,000/$100,000.
(2) Commercial General (Public) Liability - to include coverage for the following where
the exposure exists: (a) Premises operations; (b) Independent contractors; (c)
Products/completed operations; (d) Personal injury; (e) Contractual liability; (e)
Explosion, collapse and underground property damage - combined single limit for
bodily injury and property damage $5,000,000 per occurrence or its equivalent.
Comprehensive Automobile insurance coverage for loading and unloading hazards,
for (a) Owned/leased automobiles; (b) Non -owned automobiles; (c) Hired
automobiles - combined single limit for bodily injury and property damage
$1,000,000 per occurrence or its equivalent.
(C) The City shall be entitled, upon request and without expense, to receive copies of certificates
of insurance evidencing coverage stated above. The City may make any reasonable requests
for deletion, revision or modification of particular policy terms, conditions, limitations or
exclusions, except where policy provisions are established by law or regulation binding upon
either the City or Grantee or upon the underwriter for any of such policies. Upon request for
deletion, revision or modification by the City, Grantee shall make the requested changes and
shall pay the cost thereof.
(D) Grantee agrees that with respect to the above -required insurance, all insurance certificates
shall contain the following required provisions:
(1) name of the City of Round Rock and its officers, employees, board members and
elected representatives as additional insured parties as the interests of each insured
may appear as to all applicable coverage except worker's compensation;
(2) provide thirty (30) days notice to the City for cancellation, non -renewal, or material
change;
(3) provide for notice to both the City Manager and the City Attorney by certified mail;
(4) provide that all provisions of the franchise ordinance, as amended, concerning
liability, duty, and standard of care, including the Indemnity contained in Section 19
of this franchise ordinance, shall be underwritten by contractual coverage sufficient
to include the obligations.
(E) The policy clause "Other Insurance" shall not apply to the City of Round Rock where the
City is an insured on the policy. Insurance policies protecting Grantee and the City shall be
primary coverage for all losses covered by the policies.
(3)
30
(F) Companies issuing the insurance policies shall have no recourse against the City of Round
Rock for payment of premiums or assessments which are at the sole risk of Grantee.
Insurance policies obtained by Grantee shall provide that the issuing company waives all
right of recovery by way of subrogation against the City in connection with any damage
covered by the policies.
SECTION 19.
INDEMNITY
(A) Grantee shall defend, indemnify and hold City harmless from and against all damages, costs,
loss or expense for the repair, replacement, or restoration of the City's property, equipment,
materials, structures and facilities which are damaged, destroyed or found to be defective as
a result of Grantee's negligence, willful misconduct or strict liability.
(B) Grantee, for itself and its agents, employees, subcontractors, and the agents and employees
of any subcontractors, shall defend, indemnify, and hold the City, its successors, assigns,
officers, employees and elected officials harmless from and against any and all claims,
demands, suits, causes of action, and judgments for: (i) Damage to or loss of the property
of any person including, but not limited to Grantee, its agents, officers, employees and
subcontractors, the City's agents, officers and employees, and third parties; and/or (ii) death,
bodily injury, illness, disease, worker's compensation, loss of services, or loss of income or
wages to any person including but not limited to the agents, officers and employees of
Grantee, Grantee's subcontractors, the City's agents, officers, employees, contractors, and
third parties, arising out of, incident to, concerning or resulting from the negligence, willful
misconduct or strict liability of Grantee, its agents, employees, or subcontractors, in the
performance of all activities and services under this franchise, no matter how, or to whom,
the loss may occur.
(C) In the event that any such damage, claim or loss is found by a court of competent jurisdiction
to be caused by the concurrent fault of both Grantee and City, then Grantee shall indemnify
the City to the full proportionate extent that Grantee is determined to be at fault. It is the
intention of the parties, and Grantee expressly agrees, that the provisions of this section shall
not exclude claims, damages, and losses caused in part, but not wholly, by the negligence of
the City, even if the City is more negligent than Grantee.
(D) The terms of each contract awarded by Grantee for activities pursuant to this ordinance shall
contain indemnity provisions whereby the contractor shall indemnify the City to the same
extent as described above.
(E) The City shall give Grantee prompt written notice of any claims or suits. Grantee shall have
the right to investigate, defend and compromise same to the extent of its own interests.
SECTION 20.
NOTICES
(A) Notices from Grantee to the City under this franchise shall be directed to the City Attorney
at 309 East Main Street, Round Rock, Texas, 78664, and to the City Manager at 221 East
Main Street, Round Rock, Texas, 78664, or to the officer as designated by the City Council.
31
All notices to Grantee pursuant to this franchise shall be to the corporate officer designated
by Grantee in writing in the acceptance of the franchise, which may be changed in writing
after notice to Grantee. Grantee shall also maintain within the City's boundaries a toll-free
telephone number operational during normal business hours for the conduct of matters
related to this franchise. Any change in address or telephone number shall be furnished to
the City ten (10) days prior to the change. All required notices, directions, or orders under
this franchise shall be sent by certified mail, return receipt requested, and shall be deemed
delivered upon deposit, properly addresses, in the United States Mail.
SECTION 21.
FORFEITURE AND TERMINATION
(A) The City may, at its option, terminate this franchise by giving written notice of such
termination to Grantee upon occurrence of any of the following:
(1) Filing of a voluntary bankruptcy petition by Grantee;
(2) Taking of jurisdiction of Grantee or its assets in bankruptcy proceedings by any court,
such proceedings not being vacated within thirty (30) days;
(3)
Taking by execution of Grantee's interest in this contract or of property placed on the
premises;
(4) Appointment by any court of a receiver for Grantee, such proceedings not being
vacated within thirty (30) days.
(B) In addition to all other rights and powers retained by the City under this franchise or
otherwise, the City reserves the right to forfeit and terminate this franchise and all rights and
privileges of Grantee hereunder at any time in the event that Grantee fails to comply with any
provision or requirement contained herein after sixty (60) days written notice to do so.
(C) There shall not be an automatic presumption of a material breach if the violation occurs
without the fault of Grantee or occurs as a result of circumstances beyond its control.
Grantee shall not be excused from performance of any of its obligations under this franchise
by mere economic hardship, nor misfeasance or malfeasance of its directors, officers or
employees.
(D) A termination shall be declared only by a written decision of the City Council after an
appropriate public proceeding before the City Council, which affords Grantee due process
and full opportunity to be heard and to respond to any notice of grounds of termination. All
notice requirements shall be met by providing written notice to Grantee at least fifteen (15)
days before a public hearing concerning the proposed termination of this franchise. Such
notice shall state the grounds for termination alleged by the City. The City shall prescribe
the procedures to be followed at such public hearing.
(E) The City Council, after public hearing, and upon finding the existence of grounds to
terminate, may either declare this franchise terminated or excuse the breach upon a showing
by Grantee of mitigating circumstances or good cause for the existence of such grounds.
32
(F) Neither Grantee's acceptance of this franchise, Grantee's appearance before the City Council
at any public hearing concerning proposed termination of this franchise nor any action taken
by the City Council as a result of such public hearing, including a declaration of termination
or a finding of grounds to terminate, shall be construed to waive or otherwise affect
Grantee's right to seek judicial determination of the rights and responsibilities of the parties
under this franchise.
SECTION 22.
EMERGENCY OVERRIDE
(A) Grantee shall maintain systems, equipment, and procedures permitting preempting of the
regular signal on all channels with emergency warning signals originating from the City of
Round Rock Office of Emergency Management. The following stipulations shall apply,
except as specifically preempted by FCC regulations.
(B) The Director of the Office of Emergency Management (OEM) shall determine when the
Emergency Cable Override is to be activated in response to actual or impending emergency
conditions.
(C) Grantee shall provide and maintain all equipment, systems, software, services, security
provisions, and procedures required for a fully operational emergency cable override warning
system in accordance with FCC rules. Grantee shall provide the equipment necessary for
activation of the system by the Office of Emergency Management. Activation points shall
be, at minimum, the Round Rock/Williamson County Emergency Operations Center and one
other backup point within the area named by OEM.
(D) The cable override shall consist of audio and crawler text signals as required by the Federal
Communications Commission rules governing the new Emergency Alert System (EAS).
(E) The system shall be tested as determined by the Office of Emergency Management not more
than once every thirty (30) days and not less than once per year.
(F) Grantee shall cooperate fully with the Office of Emergency Management in all other matters
pertaining to a functioning emergency cable override system.
SECTION 23.
FORCE MAJEURE
The time within which Grantee shall be required to perform any act under the franchise shall
be extended by a period of time equal to the number of days performance is delayed due to a force
majeure. Grantee shall not be subject to any penalty hereunder because of acts or failure to act due
to force majeure.
SECTION 24.
SEVERABILITY AND PREEMPTION
(A) Except as provided in Section 24(B), if any section, subsection, sentence, clause, phrase,
term, provision, condition, covenant or portion of this franchise is for any reason held invalid
33
or unenforceable by any court of competent jurisdiction, or superseded by state or federal
legislation, rules, regulations or decision, the remainder of this franchise shall not be
affected, but shall be a separate, distinct and independent provision, and such holding shall
not affect the validity of the remaining portions, and each remaining section, subsection,
sentence, clause, phrase, provision, condition, covenant and portion of this franchise shall
be valid and enforceable to the fullest extent permitted by law.
(B) If any material provision of this franchise is held invalid or unenforceable by any court of
competent jurisdiction, or superseded by state or federal law, rules, regulations or decision
so that the intent of these provisions is frustrated, the parties agree to immediately attempt
to negotiate a replacement provision to fulfill the purpose and intent of the superseded
provisions consistent with applicable law.
(C) If federal or state laws, rules or regulations preempt a provision or limit the enforceability
of a provision of this franchise, then the provision shall be read to be preempted to the extent
and for the time required by law. In the event such federal or state law, rule or regulation is
subsequently repealed, rescinded, amended or otherwise changed so that the provision that
had been preempted is no longer preempted, such provision shall return to full force and
effect, and shall thereafter be binding on the parties, without the requirement of further action
on the part of the City, and any amendments to this franchise negotiated pursuant to Section
24(B) as a result of such provision being preempted shall no longer be of any force or effect.
SECTION 25.
EFFECTIVE DATE
This franchise shall take effect on the sixty-first (61st) day after its passage on final reading
by the City Council, and after acceptance by Grantee in accordance with the provisions herein and
of the Charter of the City of Round Rock.
SECTION 26.
ARBITRATION
It is expressly agreed by and between the parties hereto that any controversy or dispute
between Grantee and the City concerning the performance of either party under this franchise and/or
calculation of any monetary payment due to the City by Grantee shall not be submitted to arbitration.
SECTION 27.
NON-BINDING MEDIATION
(A) Prior to filing suit, the parties to this franchise may use non-binding mediation to resolve any
controversy, claim or dispute arising under this agreement. If any of the provisions of this
Section 27 are determined to be invalid or unenforceable, the remaining provisions shall
remain in effect and binding on the parties to the fullest extent permitted by law.
(B) To initiate non-binding mediation, a party shall give written notice to the other party or
parties. In the mediation process, the parties will try to resolve their differences voluntarily
34
with the aid of an impartial mediator, who will attempt to facilitate negotiations. The
mediator will be selected by agreement of the parties.
(C) The mediation will be conducted as specified by the mediator and agreed upon by the parties.
The parties agree to discuss their differences in good faith and to attempt with the assistance
of the mediator to reach an amicable resolution of the dispute. Any finding by the mediator
shall be a non-binding determination. Each party will bear its own costs in the mediation.
The fees and expenses of the mediator will be shared equally by the parties.
(D) The mediation will be treated as a settlement discussion and therefore will be confidential
in accordance with Tex. Civ. Prac. & Rem. Code § 154.073. The mediator may not testify
for either party in any later proceeding relating to the dispute. No recording or transcript
shall be made of the mediation proceedings.
SECTION 28.
VENUE AND GOVERNING LAW
(A) Venue of any court action brought directly or indirectly by reason of this franchise agreement
shall be in Williamson County, Texas. This franchise shall be construed under, and in
accordance with, the laws of the State of Texas, and all obligations of the parties created
hereunder are performable in Williamson County, Texas.
(B) This franchise agreement shall be construed in accordance with the City Charter and City
Codes in effect on the date of passage of this franchise agreement, and as may be
subsequently amended, to the extent that such Charter and Codes are not in conflict with or
in violation of the Constitution and laws of the United States of the State of Texas.
(C) This franchise agreement shall be construed and deemed to have been drafted by the
combined efforts of the City and of Grantee.
SECTION 29.
WAIVER
None of the provisions of this franchise agreement may be waived or modified except
expressly in writing signed by Grantee and the City, as authorized by City Council by passage of a
resolution or ordinance. Failure of either party to require the performance of any term in this
franchise agreement or the waiver by either party of any breach thereof shall not prevent subsequent
enforcement of such term and shall not be deemed a waiver of any subsequent breach.
SECTION 30.
CONFORMITY TO CONSTITUTION, STATUTES, CHARTER AND CODES
(A) This franchise agreement and referenced ordinance is passed subject to the provisions of the
Constitution and the laws of the State of Texas and the Charter provisions of the City of
Round Rock and applicable sections of the Round Rock City Code of Ordinances.
35
(B) In addition to these provisions, the City expressly reserves the right to adopt, from time to
time, ordinances, rules and regulations it may deem necessary in the exercise of the City's
governmental powers. Grantee agrees to abide by any laws of the City within a reasonable
time after passage thereof.
(C) The City expressly reserves the right to enforce reasonable regulations concerning the
franchisee's access to or use of public rights-of-way and other public ways or property,
including requirements for permit applications. It is understood and agreed by and between
the parties hereto that the franchisee is responsible for obtaining all necessary permits and
licenses.
SECTION 31.
ADMINISTRATION AND NOTICE
(A) The City Manager, or his designee, is the principal city officer responsible for the
administration of this franchise agreement and shall review the operations of Grantee in the
rights-of-way under this agreement.
(B) Upon reasonable written request by the City, Grantee shall inform the City Council as to all
matters in connection with or affecting the construction, reconstruction, maintenance and
repair of Grantee's facilities in the rights-of-way, and the recording and reporting by Grantee
of all material changes to such facilities.
(C) Notices required by this franchise agreement shall be given by registered or certified mail by
depositing the same in the United States mail in the continental United States, postage
prepaid. Either party shall have the right, by giving written notice to the other, to change the
address at which its notices are to be received. Until any such change is made, notices to the
City shall be delivered as follows:
Robert L. Bennett, Jr.
Office of the City Manager
City of Round Rock
221 East Main Street
Round Rock, TX 78664
Until any such change is made, notices to Grantee shall be delivered as follows:
John Moore
Vice President and General Manager
Grande Communications, Inc.
401 Carlson Circle
San Marcos, TX 78666
(D) Copies of petitions, applications, communications and reports submitted by Grantee to the
FCC or the Public Utilities Commission of Texas shall be provided to the City upon request.
36
4 ' 4
SECTION 32.
AUTHORITY
The signer of this franchise agreement on behalf of Grantee hereby represents and warrants
that such person signing has full authority to execute this franchise agreement on behalf of Grantee.
SECTION 33.
PASSAGE AND APPROVAL
A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed.
B. The invalidity of any section or provision of this ordinance shall not invalidate other sections
or provisions thereof.
C. The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Ordinance was adopted was posted and that such
meeting was open to the public as required by law at all times during which this Ordinance
and the subject matter hereof were discussed, considered and formally acted upon, all as
required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended.
Alternative 1
By motion duly made, seconded and passed with an affirmative vote of all the Council members
present, the requirement for reading this ordinance on two separate days was dispensed with.
READ, PASSED, and ADOPTED on first reading this day of , 2001.
Alternative 2
READ and APPROVED on first reading this Pitjday of , 2001.
iJ'1
READ, APPROVED, and ADOPTED on second reading this o 0 `day of , 2001.
ROB
ATTEST:
CHRISTINE R. MARTINEZ, City Secretary
37
4
A. STLUKA, JR., Payor
•
Attachment A
City of Round Rock
Building Locations & User Distribution
Address
Max # of users
1
Central Fire Station/PW
203 Commerce/2008 Enterprise
200
2
Fire Station 2
201 Florence
5
3
Fire Station 3
1991 Rawhide
5
4
Fire Station 4
3300 Gattis School
5
5
Fire Station 5
350 Deepwood
5
6
Police Station/PARD
615/605 Palm Valley
300
7
City Hall
221 E. Main
200
8
Library
216 E. Main
200
9
Streets/WLM/Auto Shop
910/901 Luther Peterson
20
10
Water Plant/Meter Shop
5200 N. IH 35
20
11
Recreation Center
1600 Gattis School
20
12
Convention Center
3400 E. Palm Valley
100
13
Municipal Office Complex
400
14
Fire Station 6
5
15
Fire Station 7
5
16
Fire Station 8
5
17
Fire Station 9
5
18
City Attomey
309 E. Main
20
DATE: November 15, 2001
SUBJECT: City Council Meeting — November 20, 2001
ITEM: 12.A.1. Consider an ordinance authorizing the Mayor to execute a
telecommunications franchise agreement with Grande
Communication& (Second Reading)
Resource: Will Hampton, Communications Director
History: Grande Communications of San Marcos approached the City last year
seeking a franchise to provide cable television and telephone service to
Round Rock customers.
Funding:
Cost: None
Source of funds: N/A
Outside Resources: N/A
Impact: This agreement has a 15 -year term. Grande is agreeing to provide an up
front payment of $100,000 to spread out over three years, to the City for
its government access channel operations, as well as provide up to
$250,000 in broadband services to the City.
Benefit: If approved, Round Rock customers will have an additional choice for
cable television and local phone service providers.
Public Comment: N/A
Sponsor: None
RECEIVED OEC 0 3 20 f
Registered Mail
Return Receipt Requested
November 28, 2001
Ms. Joanne Land
Assistant City Manager / City Secretary
City of Round Rock
City Hail
221 East Main
Round Rock, Texas 78664
Dear Ms. Land:
Grande Communications, Inc. (the "Company"), acting by and through the
undersigned officer who is acting within his official capacity and authority, hereby
accepts the franchise to operate a cable television system within the City of
Round Rock (the "City") as said franchise is set forth and provided in Ordinance
No. G -01-11-20-12A1 (the "Ordinance"). The Company agrees to be bound and
governed by each term, provision and condition of the Ordinance, to accept and
to give the benefits provided by the Ordinance and to perform each service and
duty set forth and provided for in the Ordinance in a business -like and reasonable
manner and in compliance with the Franchise.
Grande Communications, Inc.
13505 Burnet Road
Austir Texas 78727
.'' ANN 11/3
ignature
/n• 1
Na John B. Moore " ��.:.
Title: Vice President & General Manager l �G ;`L,• ••
111 :•••y/.§'§,u <Y.•' ?
SWORN AND SUBSCRIBED TO BEFORE M ON THIS THE DAY OF Novem�ili e°,'`
2001, JOHN B. MOORE.
Signature
Cc: File, Andy Kever, Paul Lewis
Printed Name
Notary Public, State of T
Grande
Internet I phone 1 cable
1 3505 Burnet Road • Austin, Texas 78727 • www.grandecom.com • 51 2.220.4000 • 512.220 4010 fax