Loading...
HomeMy WebLinkAbout566 03-27-1979ORDINANCE No. 566 AN ORDINANCE CREATING A NEW CHAPTER 17 TO THE CODE OF ORDINANCES, CITY OF EULESS, TEXAS, TO BE ENTITLED "CABLE TELEVISION "; AUTHORIZING THE GRANT OF FRANCHISES FOR THE ESTABLISHMENT AND OPERATION OF COMMUNITY AN- TENNA TELEVISION SYSTEMS; PROVIDING FOR THE TERMS AND CONDITIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE; AN EFFECTIVE DATE; AND A PENALTY FOR VIOLATION THEREOF. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EULESS, TEXAS: The code of Ordinances, City of Euless, Texas, is hereby amended by creating a new Chapter 17, entitled "Cable Television ", which shall hereafter read and be as follows: ARTICLE I Section 17 -1. FRANCHISE AUTHORIZED A franchise may be granted by the City of Euless pursuant to this ordinance which shall grant to the grantee, hereinafter referred to as "franchisee ", the right, privilege and franchise to erect, construct, operate and maintain in, upon, along, across, above, over and under the streets, alleys, public ways and public places now laid out or dedicated and all such extensions and additions thereto within the City; and poles, wires, cables underground, conduits, manholes, and other television conductors and fixtures necessary for the maintenance and operation of a CATV system for the interception, sale, transmission and distribution of television programs and other audio- visual electri- cal, signals and the right to transmit the same to the inhabitants of the City on the terms and conditions hereinafter set forth. The City of Euless expressly reserves the right to grant a similar use of said streets, alleys, public ways and places to any person at any time. It is further the intention of this ordinance to limit the activity of a franchisee hereunder solely to the operation of cable television systems within the City of Euless. Section 17 -2. DURATION OF FRANCHISE GRANT The term of the franchise to be granted by the City of I.uless pursuant to this ordinance shall be for a period of not more than fifteen (15) years from and after the grant and acceptance date of the franchise to be awarded, subject to the conditions and restr_icti.ons as hereinafter provided, and further provided that the Mayor and City Council shall have the right to review such franchise periodically at such times as the Mayor and City Council may from time to time elect to do so and as hereinafter provided. Section 17 -3. FRANCHISE RIGHTS SUBJECT TO POLICE POWERS In accepting this franchise, the franchisee acknowledges that its rights hereunder are subject to the police power of the City to adopt and enforce general ordinances necessary to the safety and welfare of the public; and it agrees to comply with all applicable general laws and ordinances enacted by the City pursuant to such power. ARTICLE II This ordinance shall be known and may be cited as the "Euless Cable Television Ordinance" and it shall become a part of the Code of Ordinances of the City of Euless, Texas, with the following definitions applicable thereto. DEFINITIONS Section 17 -4. AGENCY Agency means the person, department, or agency designated by the City Council to act in matters related to CATV. Section 17 -5. CABLECASTING, ORIGINATION AND ACCESS Cablecasting means programming (exclusive of broadcast signals) carried on a cable television system. 1. Origination Cablecasting. Programming (exclusive of broad - castsignals) carried on a cable television system over one or more channels, and subject to the exclusive control of the cable operator. 2. Access Cablecasting. Services provided by a cable television system on its public, education, local government, or leased channels. a. Public Access Channel A specially designated non - commerical public access channel available on a firstcome non - discriminatory basis for which the system shall maintain and have available for public use at least the minimal equip- ment and facilities necessary for the production of programming for such a channel. b. Education Access Channel A specially designated channel for use by local educa- tional authorities. C. Local Government Access Channel A specially designated channel for local government -2- M uses. d. Leased Access Channel Portions of the system's nonbroadcast bandwidth in- cluding unused portions of the specially designated channels for leased access services. Section 17 -6. CATV Community antenna television system or cable television system or CATV system means any facility, the primary function of which is either to receive and amplify the broadcast signals of one or more television and radio stations or to provide signals for additional closed circuit programming, and to redistribute such signals to mem- bers of the public who subscribe thereto or to whom redistribution of such signals is required by the ordinance, by means of wires, cables, conduits, or any other devices which are above, below, on, in, or along highways or other public places. Section 17 -7. CERTIFICATE HOLDER - FRANCHISEE - CABLE OPERATOR The terms certificate holder, franchisee and cable operator are used interchangeably herein, and unless the contest indicates otherwise, shall mean and refer to the person or company awarded a Certificate of Public Convenience and Necessity for the operation of a CATV system in the City of Euless, the certificate to be awarded in accordance with the provisions of applicable law, including this ordinance. Section 17 -8. CHANNELS 1. Class I Cable Television Channel. A signalling path provided by a cable television system to relay to subscriber terminals television broadcast programs that are received off - the -air or are obtained by microwave or by direct connection to a television broadcast station. 2. Class II Cable Television Channel. A signalling path pro- vided by a cable television system to deliver to subscriber terminals television signals that are intended for reception by a television broadcast receiver without the use of an auxiliary decoding device and which signals are not involved in a broadcast transmission path. 3. Class III Cable Television Channel. A signalling Bath provided by a cable television system to deliver to subscriber ter- minals signals that are intended for reception by equipment other than a television broadcast receiver or by a television broadcast receiver only when used with auxiliary decoding equipment. 4. Class IV Cable Television Channel. A signalling path pro- vided by a cable television system to transmit signals of any type from a subscriber terminal to another point in the cable television -3- system. Section 17 -9. CONVERTER Converter means an electronic device, which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber, and by an appropriate channel selector also permits a subscriber to view all signals delivered at designated dial locations. 1. Single Channel Converter. An electronic device used at the headend, which changes the frequency of RF television signals to some other channel. 2. Set Converter. An electronic device at a subscriber's ter- minal which permits a subscriber to receive all cable TV signals on a common channel, usually not subject to local interference. Section 17 -10. DISTRICT District means the area within which the cable operator will pro- vide service. Section 17 -11. FEDERAL COMMUNICATIONS COMMISSION (FCC) Federal Communications Commission (FCC) means the federal regula- tory agency established by the Federal Communications Act of 1934, as amended, including the rules and regulations promulgated and adopted pursuant thereto. Section 17 -12. GROSS RECEIPTS, REVENUES, GROSS ANNUAL RECEIPTS As compensation for the franchise granted herein and in conl:idera- tion of permission to use the streets and public ways of the City and the Service Area for the construction, operation, maintenance, and re- construction of a cable communications system within the City and Service Area, the franchisee shall pay to the City of Euless, Texas, an annual amount equal to three percent (3 %) of the franchisee's gross annual revenues from all sources attributable to the operations of the franchisee within the City and the Service Area. Section 17 -13. LOCALLY RECEIVABLE SIGNALS Locally receivable signal is a signal from a station whose grade A contour includes either a majority of the franchise area or includes the cable system signal reception site. Section 17 -14. MONITORING Monitoring means observing a one -way communication signal, or the absence of a signal, where the observer is neither the subscriber nor -4- the programmer, whether the signal is observed by visual or electronic means for any purpose whatsoever. Section 17 -15. PROGRAMMER Programmer means any person, firm, corporation, or entity who or which produces or otherwise provides program material for transmission by video, audio, digital, or other signals, either live or from re- corded tapes, to subcribers, by means of the cable communications system. Section 17 -16. SCHOOL School means any institution of the H.E.B. Tndependent School District, any non - profit day care center, and any other non - profit educational institution. Section 17 -17. SERVICE, BASIC AND ADDITIONAL 1. Basic Subscriber Service means the total of all the following: a. The transmission of all broadcast video channel signals provided for herein; b. The transmission of the public, educational, and local government access channel signals; C. The transmission of the local origination channel signals; d. The transmission of such other cablecast channel signals as are required by the FCC to match the number of broad- cast channel signals being transmitted; and e. The installation and re- connection of subscriber ser- vice outlets. 2. Additional services means any of the following: a. Such video services as the transmission of all leased access channel signals not included in basic subscriber service, as well as the transmission of cablecast video advertising messages and pay television signals. Section 17 -18. SUBSCRIBER Subscriber means any person, firm, corporation, or other entity receiving for any purpose the service of the franchisee herein. Section 17 -19. STREETS AND HIGHWAYS Streets means streets, avenues, highways, boulevards, concourses, driveways, bridges, tunnels, parks, parkways, waterways, docks, hulk- -5- heads, wharves, piers, alleys, all other public rights of way, and public grounds or waters within or belonging to the City. Section 17 -20. SYSTEM System means the broadband communications facility which is to be constructed operated and maintained by the Company within the City of Euless. Section 17 -21. TWO -WAY CAPABILITY Two -way capability means the subscriber shall have the capability to choose whether or by sequential delay by utilizing any type ever, by push button code, dial code, meter, by any other means to any type of electrical signal, display, and /or interrogation. Section 17 -22. USER or any other location Dr not to respond immediately of terminal equipment what - voice, video signal, or or mechanically produced User denotes a person or organization utilizing a system channel for purposes of production and /or transmission or material, as con- trasted with receipt thereof, in a subscriber capacity. Section 17 -23. TAPPING Tapping means observing a two -way communications signal exchange, where the observer is neither of the cummunicating parties, whether the communications signal exchange is observed by visual or electronic means for any purpose whatsoever. ARTICLE III PROVISIONS GOVERNING THE LENGTH, RENEWAL AND TRANSFER OF A CERTIFICATE OR FRANCHISE Section 17 -24. FRANCHISE REQUIRED: DURATION: EXCLUSIVITY 1. The City may grant a franchise for the use of the streets within the City for the construction, operation, and maintenance of a CATV system. No system shall be allowed to occupy or use the streets of the City or be allowed to operate without a CATV franchise. 2. The franchise shall be granted for a term of not more than fifteen (15) years; thereafter, after full public hearings, and accord- ing to the franchise- renewal procedure that follows, the franchise may be renewed for a period of reasonable duration not to exceed fifteen (15) years'as in the opinion of the City Council will serve the public interest. a. Procedure to consider franchise renewal: -6- 1. Prior to the expiration of the franchise, and after giving public notice, the City Council shall hold public hearings (one or more) for the purpose of evalu- ating the performance of the franchisee as well as the adequacy of the franchise and the franchise ordinance. 2. Following such public hearings the City Council shall consider (i.) renewal of the franchise, (ii) changes in the franchise agreement, and (iii) amendments to the franchise ordinance. 3. After the above provided for review the City Council may renew the franchise of the franchisee as hereinbefore provided and subject to such changes, terms and condi- tions as may be determined by the City Council or the City Council may seek new and /or additional applicants for franchise evaluation and grant pursuant to the pro- visions of the ordinance or as same may be then amended. b. Alternate procedure to consider franchise renewal: 1. Prior to the expiration of the franchise the City Council may appoint, in the manner provided for in Section 17- 57(2), a CATV Advisory Board to review the performance of the franchisee as well as the adequacy of the franchise and the franchise ordinance. 2. After giving public notice, the Board shall hold public hearings (one or more) for the purpose of evaluating the performance of the franchisee as well as the adequacy of the franchise and the franchise ordinance. [n making such evaluation the Board shall consider, without limita- tion thereto, the technical developments and performance of the system, programming, other services offered, cost of service, and any other particular requirement :yet forth in the ordinance, such as the availability of pro- gramming equipment and personnel to aid access channel users; also, the Board shall consider the franchise's annual reports made to the City )r the FCC: provision shall be made for community comment, and industry per- formance on a national basis shall be considered. 3. The Board shall submit to the City Council recommenda- tions in regard to (i) renewal of the franchise, (ii.) changes to the franchise agreement, and (iii) amendments to the franchise ordinance. 4. After review of the recommendations of the Board, the Council shall adopt such changes in the franchise agree- ment and amendments to the franchise ordinance as it shall deem necessary, which changes and amendments shall 7- not be limited to the recommendations of the Board. 5. After the above provided for review and making of any changes to the franchise and amendments to the franchise ordinance the City Council may renew the franchise of the franchisee as hereinbefore provided and subject to such changes, terms and conditions as may be determined by the City Council or the City Council may seek new and /or additional applicants for franchise evaluation and grant pursuant to the provisions of the ordinance or as same may be then amended. Section 17 -25. RENEGOTIATION 1. The Cite and the franchisee, after giving public notice, shall hold scheduled renegotiation sessions within thirty (30) days of the fifth and tenth anniversary dates of the franchisee's obtaining certi- fication for the system from the Federal Communications Commission. All such negotiation sessions shall be open to the public. 2. Special Renegotiation Sessions. Special renegotiation ses- sions may be held at any time during the term of the franchise provided that both the City and the franchisee shall mutually agree on the time, the place, and the topics to be negotiated. All such renegotiation sessions shall be held after giving public notice and shall be open to the public. 3. Topics to be Negotiated. The following topics shall he dis- cussed at every scheduled renegotiation session: Service rate structures; free or discounted services; application of new technologies; system per - formances; services provided; programming offerred; customer complaints; amendments to this ordinance; undergrounding progress; and judicial and FCC rulings. 4. Topics in addition to those .listed may be added if agreed upon by the parties. Members of the general public may add topics either by working through the negotiating parties or by presenting a petition. If such petition bears the valid signatures of fifty or more residents of the City, the proposed topic or topics shall be added to the list of topics to be discussed at the renegotiation session. Section 17 -26. CANCELLATION AND TERMINATION 1. The City Council may cancel the franchise conferred by this ordinance at any time prior to its expiration date upon a finding, made after public hearing, following public notice, that the franchisee has failed to cure one or more of the following defects during a thirty (30) day period following written notice by the City Manager to the franchisee of such defect: a. Material breach, whether by act or omission, of any terms or conditions of this franchise ordinance or the franchise agreement. b. Material mir - representation of fact in the application for or neogtiation of the franchise. C. Failure to provide subscribers or users with service in the best interest of the public convenience and welfare. Section 17 -27. CONTINUITY OF SERVICE AND PURCHASE OF SYSTEM 1. Continuity of Service Mandatory. The franchisee shall he required to provide continuous service to all subscribers in return for payment of the established fee. If the franchisee over builds, rebuilds, modifies or sells the system, or the City revokes or fails to renew this franchise, or the City elects to purchase the system, the franchisee is required as part of its franchise to continue to operate the system until an orderly change of operation is effectuated. In the event the franchisee fails to operate the system for Five con- secutive days without prior approval of the City Council, the City or its agent my operate the system until such time that a new operator is selected. 2. City purchase of System upon Revocation. In the event that the City revokes or terminates the franchise, pursuant to appropriate provisions of this ordinance, the City shall have the right to pur- chase the CATV system at a price not to exceed its then book value (that is, original cost of property less accumulated depreciation). The book value shall be determined by the City in accordance with generally accepted appraisal and accounting principles. Under no circumstances shall any valuation be made for "good will" or any right or privilege granted by the franchise. Section 17 -28. TRANSFERS AND ASSIGNMENTS 1. A franchisee operating under this ordinance shall not be permitted to sell, transfer, or otherwise change more than ten (10 %) percent of the ownership granted under the franchise without prior written consent of the City of Euless. If after five (S) years the franchisee would consider sa -le of more than ten (10 %) percent or a transfer of control, then provided the transferee met the character, financial, and experience criteria established by the FCC and the City Council of Euless, the consent of the City Council of Euless to such transfer shall not be unreasonably withheld. 2. A franchisee operating ender this ordinance shall not be permitted to sell, lease, sublease, transfer, or otherwise change working control of the franchisee without prior written consent of the City of Euless. For the purpose of determining whether it ,hall consent to such change, transfer, or acquisition of control, the City Council may inquire into the prospective controlling party, and -9- the franchisee shall assist the City Council in any such inquiry. if the City Council does not schedule a hearing on the matter within sixty (60) days after notice of the change or proposed change and the filing of a petition requesting its consent, the City shall hn deemed to have consented. In the event that the City Council adopts a resolution denying its consent, and such change, transfer, or acquisition of control has been effected, the City Council may ter- minate the franchise. 3. The consent or approval of the City Council to any assign- ment, lease, transfer, sublease, or mortgage of the franchise granted to the franchisee shall not constitute a waiver of release of the right:3 of the City in and to the streets. 4. In the absence of extraordinary circumstances, the City Council will not approve the assignment of the franchise by the fran- chisee prior to completion of construction of the CATV system. ARTICLE IV FRANCHISE TERRITORY - EXTENSION OF SERVICE Section 17 -29. FRANCISE AREA A franchisee shall submit, prior to grant of a Franchise a map showing the franchise area and the projected construction completion dates. The map shall clearly delineate any areas which will not be served, if any. Section 17 -30. REVIEW OF FRANCHISE AREA From time to time, after a franchise is awarded, the City Council may review the map provided for in Section 17 -29 and make changes in the service areas. 1. In making changes in the service area the City Council shall take into consideration the costs of such changes, popula- tion density and averages, and terrain problems. 2. The review shall take place at a public meeting. Section 17 -31. SERVICE OUTSIDE FRANCHISE AREA A franchise shall negotiate with any citizen or group of citizens desiring service who are located outside the service area. Section 17 -32. ANNEXATION Upon the annexation of any new territory by the City of Euless, the portion of the CATV system that may be located or operated within -10- such territory, and the streets, alleys, or public grounds thereof, shall thereafter be subject to all the terms of a franchise grant as though it were an extension made thereunder. ARTICLE V Section 17 -33. ACCESS PROGRAMMING FACILITIES Any cable system franchise shall provide reasonable equipment to be used by access cablecasters with the aid of a technical and pro- duction staff to be provided by the operator. Included should be equipment that can store programs for later showing. In addition, a centrally located studio must be made available to all accer,s users on a first -come, first - served basis. Any applicant to operate the system will be expected to demonstrate in its application how it plans to make available the equipment, the studio, and production and tech- nical staff. Applicants will be given preference in the selection process for plans that will most adequately meet these requirements. A full schedule of rates for use of equipment, studio, and technical and production staff must be submitted. If separate rates are planned for mobile facilities, these must be submitted. Rate preference may be given to non - commerical users. Section 17 -34. HUB SYSTEM The cable system design shall incorporate the use of a HUB system with sufficient hubs to insure the quality of reception required by the Federal Communications Commission. Section 17 -35. INTERCONNECTIONS There shall be an interconnecting cable between the central head(Ind and the other hubs which will be activated two -way. The interconnecting cable must have the capacity to carry at least two (2) channels of TV in each direction. The franchisee may be required to interconnect its system with any other broadband communications facility operating in an adjacent territory. Such interconnection shall be-made within sixty (60) days of a request made by the City. For good cause shown the franchisee may request and the City Council may grant reasonable ex- tensions of time to comply with the requirements. Section 17 -36. EMERGENCY OVERRIDE The cable system shall include an "Emergency Alert" capability which will permit the mayor, or the mayor's designated representative, to override by remote control, the audio and /or video of all channels involved in retransmission.of television broadcast programming. Tile cable operator shall designate a channel which will be used for emer- gency broadcast. -11- Section 17 -37. STANDBY POWER The cable system operator shall maintain equipment capable of providing standby powering for headend transportation and trunk amplifiers for a minimum of two hours. The equipment shall be constructed so as to automatically notify the cable office when it is in operation and to automatically revert to the standby mode when the AC power returns. All utility safety regulations must be followed to prevent a standby generator from powering the "dead" utility line, with possible injury to an unwitting lineman. Section 17 -38. ANTENNA SWITCH FOR ALTERNATE USE OF OFF -AIR ANTENNAS AND CONVERTER- PARENTAL LOCK: SELECTION OF SIGNAL NUMBER Franchisee shall install an RF switch upon request by a subscriber. The franchisee shall not offer or provide a converter that cannot be equipped with a parental lock capable of locking or securing one or all channels. The City Council may waive this requirement if it is determined by the City Council to be technically unfeasible. ARTICLE VI PRIVACY Section 17 -39. USE OF DATA FROM SUBSCRIBER A franchisee shall not initiate or use any form, procedure, or device for procuring information or data from cable subscribers' premises by use of the cable system without prior valid written authorization from each subscriber so affected. Valid authorization shall mean written approval from the subscriber for a period of time not to exceed one (1) year, and said authorization shall not have been obtained from the subscriber as a condition of service. Further, it shall be un- lawful for a franchisee, without such authorization, to activate and /or utilize any "Class IV Cable Television Channel" in any manner from the subscriber's premises. In any case the subscriber shall have the right and opportunity to deactivate the return path from his or her premises. Section 17 -40. IDENTIFYING SUBSCRIBERS The franchisee shall not, without prior valid written authorization from each subscriber so affected provide any data identifying subscribers' names or addresses to any other party. Section 17 -41. PROCUREMENT OF INFORMATION It shall be unlawful for any firm, person, group, company, corporation, governmental body, or agency to procure information or data from cable subscriber's premises by use of the cable system without prior written authorization from each subscriber so affected. Valid authorization shall mean written approval from a subscriber for a period of time not to exceed one (1) year and shall not have been obtained as a condition of the franchisee providing cable service to the subscriber. -12- Section 17 -42. SPECIFIC AUTHORIZATION No authorization for procurement or dissemination of subscriber identifiable information or data shall be valid unless it (1) specifies the type or types of information or data covered, and (2) the parties authorized to collect, receive, store, record, transmit, or otherwise convey this information or data. Further, all authorization shall specify the maximum period of time that any subscriber identifiable information or data shall be preserved in any manner or form. Section 17 -43. SUBSCRIBER COPY REQUIRED A written copy of all subscriber identifiable information or data which is retained and /or disclosed and the disposition of this information or data, to- gether with any explanation necessary to make it understandable to the subscriber, shall be provided to the affected subscriber within thirty (30) days of procure- ment. Further disclosures shall be fully detailed in writing to the affected subscriber within thirty (30) days of such disclosure. ARTICLE VII TECHNICAL STANDARDS AND SPECIFICATIONS Section 17 -44. Methods of construction, installation, and maintenance of the franchisee's cable television system shall comply with the National Electrical Safety Code, National Electrical Code of 1975, National Bureau of Standards Handbook 81 (part 2), National Bureau of Standards, U. S. Department of Commerce November 1, 1961, to the extent that such codes are consistent with other provisions of this franchise or with local law, the latter shall govern. Section 17 -45. Any tower constructed for use in the franchisee's cable television system shall comply with the standards contained in Structural Standards for Steel Antenna Towers and Antenna Supporting Structures, EIA Standards RS -222 -A as published by the Engineering Department of the Electronic Industries Association, 2001 Eye Street, N.W., Washington, D.C., 20006. Section 17 -46. Installation and physical dimensions of any tower constructed for use in the City's cable television system shall comply with all appropriate Federal Aviation Agency regulations including, but no limited to, Objectives Affecting Navigable Airspace, 14 C.F.R. 77.1 et, seq., February, 1965. Section 17 -47. Any antenna structure used in the franchisee's cable television system shall comply with Construction Marketing, and Lighting of Antenna Structure, 47 C.F.R. 17.1 et. seq., September, 1967. -13- Section 17 -48. A franchisee shall comply fully with the rules and standards of cable tele- vision operations now existing or hereafter adopted by the Federal Communications Commission. A franchisee and users of a CATV system shall comply in all respects with all federal and state laws, applicable rules and regulations and all local ordinances and applicable rules and regulations regarding obscenity and shall not broadcast any movies, materials or any obscene, indecent or profane language or depiction proscribed by such laws, ordinances, rules or regulations and especially as outlined in 18 U.S.C., Section 1464, as now existing or as amended, and shall further comply with all Federal Communications Commission rulings for declaratory orders relating to obscenity or indecency. If a franchisee transmits obscene or indecent programming which it has produced or acquired by sale, lease or otherwise, franchisee's action shall be deemed a material breach as provided for in Section 17 -26 of this ordinance and shall subject franchisee to franchise cancellation and termination in accordance with the terms of such Section. Section 17 -49. The Company shall comply fully with the rules and regulations contained and promulgated within this ordinance and all other City ordinances which apply to the operation of the cable system. Section 17 -50. Stray radiation (Rf- leakage) shall be checked at reception locations for emergency radio services to prove no interference signal combinations are possible. Stray radiation shall be measured adjacent to any proposed aeronautical navigation radio sites to prove no interference to airborne navigational reception in the normal flight matters. ARTICLE VIII LOCAL REGULATORY FRAMEWORK AND REGULATIONS Section 17 -51. FEE REBATE ON SERVICE INTERRUPTIONS 1. In the event that service to any subscriber is interrupted for twelve (12) or more consecutive hours, but less than twenty -four (24) consecutive hours, except for acts of God and except in circumstances for which the prior approval of the interruption is obtained from the City Council, the franchisee shall pro- vide twenty -five (25 %) percent rebate of the monthly fee to the affected sub- scriber. 2. In the event that service to any subscriber is interrupted for twenty - four (24) or more consecutive hours, but less than forty -eight (48) consecutive hours, except for acts of God and except in circumstances for which the prior approval of the interruption is obtained from the City Council, the franchisee shall provide a fifty (50 %) percent rebate of the monthly fee to the affected subscriber. -14- 3. In the event that service to any subscriber is interrupted for forty - eight (48) or more consecutive hours, but less than seventy -two (72) consecutive hours, except for acts of God and except in circumstances for which the prior approval of the interruption is obtained from the City Council, the franchisee shall provide a seventy -five (75 %) percent rebate of the monthly fee to the affected subscriber. 4. In the event that service to any subscriber is interrupted for seventy - two (72) or more consecutive hours, except for acts of God and except in circum- stances for which the prior approval of the interruption is obtained from the City Council, the franchisee shall provide a one hundred (100 %) percent rebate of the monthly fee to the affected subscriber. 5. In the event that service to any subscriber is interrupted as a result of an act of God for periods in excess of twenty -four (24) hours, the franchisee shall rebate to the affected subscriber that portion of the monthly fee represented by the period of time in which service is interrupted. Section 17 -52. PERFORMANCE BOND 1. A franchisee shall file with the City Secretary, after the franchisee has received Federal Communications Commission approval and before commencement of construction or installation of any aspect of the cable television system, a bond approved by the City Attorney, executed by a bonding or surety company authorized to do business in the State of Texas, in an amount to be determined by the City Manager and stated within the franchisee's franchise agreement which bond will be conditioned upon the faithful performance by the franchisee of the construction and implementation of the community antenna television system provided for by such franchisee's franchise agreement and further conditioned that in the event the franchisee shall fail to complete the full construction, installation and imple- mentation of such community antenna television system in full compliance with its obligations under this ordinance, its franchise agreement and any other law, ordinance or regulation governing such franchise, these shall be recoverable, jointly and severally from the principle and surety of the bond, any damages or loss suffered by the City as a result thereof, including sums necessary to complete construction, installation and implementation of such community antenna television system or, at the City's discretion, the full amount of any compensation, indemni- fication or cost of removal or abandonment of any property of the franchisee, plus a reasonable allowance for attorneys fees and costs, all up to the full amount of said bond. Such bond shall contain the following endorsement: "It is hereby understood and agreed that this bond may not be cancelled nor the intention not to renew be stated, until thirty (30) days after receipt by the City Manager of Euless, Texas, by registered mail, of two (2) copies of written notice of such intent to cancel or not renew." 2. A copy of all bonds or a certified copy thereof and written evidence of payment of required premiums shall be filed and maintained with the City Secretary during the term of any franchise granted pursuant to this ordinance, or any renewal thereof. -15- Section 17 -53. CONSTRUCTION TIMETABLES 1. A franchisee shall commence operation within the time period provided within such franchisee's franchise agreement. Operations shall be considered commenced when the franchisee is able to provide, pursuant to the terms of this ordinance and such franchisee's franchise agreement, the transmission and ampli- fication of television signals on a fulltime basis to all requesting service subscribers within the franchise area as reflected by the map provided in Section 17 -29 hereof. Upon the reasonable request of any person located within the franchise area, the franchisee shall, following commencement of operations, furnish service to such person within thirty (30) days from the date of receipt of a reasonable request for service by any such person. A request for service shall be deemed unreasonable only if the location at which service is requested shall have been occupied for less than one hundred and twenty (120) days and no trunk line installation capable of servicing such location has yet been installed or, if direct access to such location cannot be obtained and all other means of access are highly impracticable. Section 17 -54. SECURITY FUND 1. Within thirty (30) days after the issuance of a franchise, the fran- chisee shall deposit with the City and maintain on deposit throughout the term of its franchise, the sum of One Hundred Thousand Dollars ($100,000.00) in the form of a cash deposit, or an irrevocable letter of credit in favor of the City con- ditioned only upon demand by the City, issued by a financial institution accept- able to the City and in form acceptable to the City Attorney. Such security fund shall be maintained in an amount acceptable to the Euless City Council to assure the faithful performance by the franchisee of all provisions of this ordinance and its franchise agreement and to assure compliance with all orders, permits and directions of the City and the payment by the franchisee of any claims, liens, fees and taxes due the City which arise by reason of the construc- tion, operation or maintenance of the system. 2. Within thirty (30) days after notice been withdrawn from the security fund deposited the franchisee shall pay to or deposit with the evidence of restoration of credit sufficient to letter of credit, as the case might be, to the Thousand Dollars ($100,000,00). to franchisee that any amount has pursuant to sub - section (1) above, City a sum of money or furnish restore such security fund or Driginal amount of One Hundred 3. If the franchisee fails to pay to the City any compensation within the time fixed herein; or, fails, after ten (10) days notice to pay to the City any penalties, taxes or fees due and unpaid; or, fails to pay, within such Len (10) days, any damages, costs or expenses which the City shall be obligated to pay by reason of any act, omission or default of the franchisee arising or in anywise connected with such franchise; or, fails after three (3) days notice of such failure by the City Manager, to comply with any provision of this ordinance or the franchise agreement which the City Manager reasonably determines can be remedied by an expenditure of the security, the City Manager may immediately with- draw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the City Manager shall notify the franchisee of the amount and date of withdrawal thereof. 4. The security fund deposited pursuant to this section shall become the property of the City in the event that the franchise is cancelled, terminated or revoked by reason of the default of the franchisee. The franchisee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit with the City at the expiration of the term of the franchise, provided that there is then no outstanding default or obligation owing by the franchisee to the City pursuant to the terms of this ordinance or the franchise agreement. 5. The rights reserved to the City with respect to the security fund are in addition to all other rights of City, whether reserved by this ordinance, the franchise agreement or authorized by law, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right of the City. Section 17 -55. ADDITIONAL PENALTIES FOR CERTAIN BREACHES 1. Acknowledging that revocation and termination alone may not provide practical enforcement of a franchisee's duties and obligations, there is hereby established additional liquidated penalties for certain breaches of the duties and obligations of the franchisee under and pursuant to the terms of this ordinance and its franchise agreement. Such specific liquidated penalties are established specifically as additional penalties in addition to all other rights reserved to the City pursuant to this ordinance and /or the franchise agreement or authorized by law, and no action taken by the City under and pursuant to this section shall in anywise constitute or be deemed to constitute an election of remedies or waiver of any other right the City may have. 2. It is expressly provided that any penalties applicable under this section may be assessed, without limiting the City's right to assessment and collection thereof, from the security fund provided for in Section 17-54 of this ordinance. 3. For violation of the following duties and obligations of the fran- chisee the penalties specified may be assessed by the City Council: a. For failure to commence operations in accordance with Section 17 -53 of this ordinance and the franchise agreement of franchisee. . .an amount not to exceed Five Hundred Dollars ($500.00) per day. b. For failure to provide service upon reasonable request by a prospective subscriber within the time limits provided by Section 17 -53 of this ordinance. . .an amount not to exceed Fifty Dollars ($50.00) per day per subscriber. C. For failure to pay any taxes or fees due the City or any damages, costs or expenses which the City shall be com- pelled to pay by reason of any act or default of the franchisee as provided for by this ordinance or the franchise agreement. . .up to Two Hundred and Fifty Dollars ($250.00) per day. -17- d. For failure to timely make any rebates due subscribers pursuant to Section 17 -51 of this ordinance. . an amount not to exceed Fifty Dollars ($50.00) per day, per subscriber. e. For failure to comply with the provisions of Section 17 -66 hereof relative to disconnection and reconnection of service. . .an amount not to exceed Fifty Dollars ($50.00) per day per subscriber. f. For failure to provide data and reports as required by the terms of this ordinance and /or the franchise agree- ment. . .an amount not to exceed One Hundred Dollars ($100.00) per day. g. For failure to comply with all other obligations of the franchisee pursuant to the terms of this ordinance and such franchisee's franchise agreement as deemed by the City Council to be a material obligation of the fran- chisee. . .an amount not to exceed One Hundred Dollars ($100.00) per day. h. For failure of the franchisee to comply with the require- ments limiting the transmission of obscene or indecent programing as provided by Section 17 -48 of this ordinance. . an amount not to exceed Twenty Five Hundred Dollars ($2,500.00) for each violation thereof. The penalties herein provided for shall be assessed by and at the discretion of the City Council and shall be deposited into the general fund of the City upon collection. The assessment of any such penalties by the City Council shall be made in open meeting at any regular or specially called meeting of the City Council. Section 17 -56. FORECLOSURE, RECEIVERSHIP 1. Upon the foreclosure or other judicial sale of all or a substantial part of the system, or upon the termination of any lease covering all or a substantial part of the system, the franchisee shall notify the City of such fact, and such notification shall be treated as a notification that a change in control of the franchisee has taken place, and the requirements of this ordinance governing the consent of the City Council to such change in control of the franchisee shall apply. 2. The City Council shall have the right to cancel the franchise sixty (60) days after the appointment of a receiver, or trustee, to take over and conduct the business of the franchisee, whether in receivership, reorganization, bank- ruptcy, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of the said sixty (60) days, or unless: a. Within sixty (60) days after election or appointment, such receiver or trustee shall have fully complied with all the provisions of this ordinance and remedied all defaults thereunder; and, b. Such receiver or trustee, within said sixty (60) days shall have executed an agreement, duly approved by the Court having jurisdiction in the matter, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this ordinance and the fran- chise agreement. Section 17 -57. ESTABLISHMENT OF A REGULATORY ENTITY 1. Continuing Regulatory Jurisdiction. The City Council of Euless, Texas, shall have continuing regulatory jurisdiction and supervision over the operation of any franchise granted hereunder and may from time to time adopt such reasonable rules and regulations as it may deem necessary for the conduct of the operations of the franchise pursuant to the terms of this ordinance and the franchisee's franchise agreement. 2. Authority to Establish CATV Advisory Board. The continuing regulatory jurisdiction of the City shall be exercised by the City Council of Euless, Texas. The City Council shall have the authority to establish and appoint a CATV Advisory Board consisting of five (5) members who shall serve for three (3) year terms with such terms to be staggered. Such Board's duration shall be at the pleasure of the Council and should such Board be established it shall advise the City Council on its regulatory jurisdiction and may have the following responsibilities and duties at the direction of the City Council. a. Resolving disputes or disagreements between subscribers and the franchisee after an investigation, should the subscriber and the franchisee not first be able to resolve their view or disagreement. Said decision or findings may be appealed to the City Council. b. Reviewing and auditing all reports and filings submitted to the City as required hereunder and such other correspon- dence as may be submitted to the City concerning the operation of the cable television network, and reviewing the rules and regulations set by the franchisee. C. Assuring that all tariffs, rates, and rules pertinent to the operation of the CATV system in the City of Euless are made available for inspection by the public at reasonable hours and upon reasonable requests. d. Reviewing rates and recommending any rate changes to the City Council. e. Such other duties and responsibilities as may be speci- fically assigned to such Board by appropriate resolution of the City Council. The membership of the Advisory Board may be comprised, in whole or in part, by members of the Euless City Council and /or employees of the City of Euless, Texas. In appointment of such Advisory Board the City Council shall designate the chairman and vice chairman thereof. Such Board may adopt rules of procedure and for the conduct of its affairs not inconsistent with this ordinance. Three (3) members of such Board shall constitute a quorum. Vacancies occurring shall be filled by the City Council for the remainder of such Board member's original term. No employee or person with ownership interest in a cable television fran- chise granted pursuant to this ordinance shall be eligible for membership on such board. Section 17 -58. FUNCTIONS TO BE REGULATED 1. A franchisee shall maintain an office in the City, which shall be open during all usual business hours, have a publicly listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received on a twenty -four (24) hour basis. 2. A franchisee shall maintain a repair and trouble - shooting force capable of responding to subscriber complaints or requests for service within twenty -four (24) hours after receipt of the complaint or request. No direct charge shall be made to the subscriber for this service. 3. A franchisee shall insure that all subscribers, programmers, and mem- bers of the general public have recourse to a satisfactory hearing of any complaint. The City shall work closely with the franchisee and members of the public, to establish procedures for handling and settling complaints. A franchisee shall present to the City no later than six (6) months after the effective date of its franchise, a set of rules, regulations and procedures concerning the handling and settling of complaints. 4. The City Council, and when authorized by the City Council its counsel, agents, and employees, shall have the right, at reasonable times and for reasonable purposes, to inspect and obtain copies of the papers, books, accounts, documents, and other business records, and to inspect the plant, equipment, and other property of the franchisee within its jurisdiction. Section 17 -59. COMPLIANCE WITH OTHER LAWS AND REGULATIONS The franchisee shall comply at all times with all applicable federal and state laws, City and county ordinances and all executive and administrative orders, rules and regulations relating to or applicable to the operation of the system. Section 17 -60. FRANCHISE FEES The franchisee shall pay, as compensation to the City, an annual fee of three (3 %) percent of its gross annual revenues. Payments due the City shall be computed quarterly, for the preceeding quarter, as of March 31, June 30, September 30 and December 31. Each quarterly payment shall be due and payable no later than thirty (30) days after the relevant computation date. Each payment shall be accompanied by a report showing the basis for the computation, together with such other rele- vant facts as may be required by the City. No acceptance of any payment shall be construed as an accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim the City may have for further or additional sums payable under the provisions of this -20- ordinance and the franchise agreement of the franchisee. Acceptance of any pay- ment shall likewise not be construed as a release or waiver of any other right of the City or obligation of the franchisee. All amounts paid shall be subject to audit and re- computation by the City. In the event that any re- computation or audit results in additional revenue due the City, such amount shall be subject to a ten (10 %) percent interest charge from the due date of such payment, together with all costs reasonably incurred by the City with respect to such audit and re- computation. Nothing in this ordinance shall limit a franchisee's liability to pay other local taxes. Section 17 -61. STANDARD REVIEW OF RATES The City Council shall review and approve or disapprove any increase or decrease of rates on the basis of what is fair to the consumer and fair to the system operator and shall include, without limitation thereto, the following factors: faithfulness of the operator in abiding by the terms of this ordinance and franchise agreement; quality of the service and efficiency of the operator; revenues and profits from all services offered; depreciated original costs of the cable plant and associated equipment; and a fair rate of return with respect to the cost of borrowing the rates of return on investment having corresponding risks. The value of the franchise, goodwill, and the value of the going concern shall not be considered as an expense and the return shall not be paid on any of these values. Section 17 -62. REQUESTS FOR RATE CHANGES The City or the franchisee may request rate increases or decreases at any time. Initial rates shall be fixed in the ordinance granting the franchise and approving the franchise agreement, and the City Council shall not consider rate increases for the term specified in the franchise agreement following completion of system construction and commencement of operations. The City Council shall have the right to select and engage rate consultants, accountants, auditors, attorneys, engineers, or any combination thereof, to conduct investigations, present evidence, advise and represent the City, and assist with litigation on ratemaking proceedings; and the franchisee engaged in such proceedings shall be required to reimburse the City for the reasonable costs of such services. Section 17 -63. USER CLASSES AND DIVISIONS Subscribers may be divided into commercial, residential and other classes approved by the City. Nothing in this provision shall prohibit the reduction or waiving of charges in conjunction with promotional campaigns for the purpose of attracting subscribers provided the consent of the City shall be first obtained. Rates for commercial and noncommercial users of access channels may be established separately. Nothing herein shall prohibit preferential rates for noncommercial users if approved by the City. Section 17 -64. ADVANCE CHARGES AND DEPOSITS A franchisee may require subscribers to pay for each month of basic ser- vice in advance at the beginning of each month. No other advance payment or deposit of any kind shall be required by the franchisee for basic subscribers' service. No deposit or advance payment of any kind shall be charged for the -21- provision of any converter without prior approval of the City. Nothing in this provision shall be construed to prohibit charges or waiver of charges for initial installation or reconnection if approved by the City. Section 17 -65. INSTALLATION AND RECONNECTION Except as otherwise provided elsewhere in this ordinance or the franchisee's agreement, a franchisee may make a charge to subscribers for the installation of service outlets and for the reconnection of service outlets. The rate for such connection or reconnection shall be authorized by the City as provided in this Article. Section 17 -66. DISCONNECTION There shall be no charge for disconnection of any installation or outlet. If a subscriber fails to pay a properly due monthly subscriber fee, or any other properly due fee or charge, the franchisee may disconnect the subscribers service outlet, provided, however, that such disconnection is effected in compliance with written disconnection procedures approved by the City. After disconnection, upon payment in full of the delinquent charges and fees and any applicable reconnection charge approved by the City, a franchisee shall promptly reinstate a subscribers cable service. Section 17 -67. COUNCIL APPROVAL OF RATES REQUIRED All changes in rates and fees charged subscribers or users by the franchisee are subject to review and approval by the City Council pursuant to this ordinance before charges may be made to the subscriber. No rate increase shall be approved until after a full public hearing has been conducted. Section 17-68. RECORDS AND REPORTS, NOTICE OF DOCUMENTS FILED WITH AGENCY No later than March 31 of each year, a franchisee shall submit a written report to the City, in a form directed by the City Council, which shall include without limitation thereto: a. A summary of the previous year's activities and develop- ment of the system, including, but not limited to, ser- vices begun or dropped, subscriber gains or losses. b. Copies of the financial statements audited by a certified public accounting firm acceptable and approved by the City, including the franchisee's balance sheet, income statement, and working papers relating to subscriber accounts. C. A current statement of costs of construction by com- ponent categories. d. A summary of complaints, identifying the number and nature of complaints and their disposition. -22- e. A list of officers and members of the board of the franchisee and the parent corporation, if any. f. A list of all stockholders holding three (3 %) percent or more of the voting stock of a franchisee and the parent corporation, if any. Section 17 -69. INSURANCE AND INDEMNIFICATION 1. It shall be expressly understood and agreed by and between the City and the franchisee hereunder that the franchisee shall save the City and its agents and employees harmless from and against all claims, damages, losses, and expenses, including attorneys fees sustained by the City on account of any suit, judgment, execution, claim or demand whatsoever arising out of, but not limited to, copyright infringements and other damages arising out of the grant of the franchise, the installation, operation or maintenance of the CATV system authorized herein and the franchise agreement, whether or not any act or omission complained of is authorized, allowed or prohibited by this ordinance and any franchise granted hereunder. In the event the City Manager shall determine that the financial strength of the franchisee may be insufficient to satisfy the indemnification obli- gations of this section and all other financial obligations of the franchisee provided for in this ordinance and the franchise agreement, the City Manager may require either an increase in the amount of the security fund provided for in Section 17 -54 hereof, or the separate unconditional guaranty of the obligations of the franchisee herein specified of any shareholder of the franchisee, including any parent or affiliated company or entity. In the event such determination is made, same shall be communicated to the franchisee, in writing, by the City Manager and such request shall be fully complied with within thirty (30) days from date of such request unless the franchisee shall, within such thirty (30) days give notice of appeal of such determination of the City Manager to the City Council in which event the City Council shall finally determine such matter, which determina- tion shall be final in all respects. The failure of a franchisee to comply with the provisions hereof for an increase in the security fund or with respect to the furnishing of additional guarantees, as the case might be, shall be deemed a material breach of the obligations of the franchisee. Likewise, the failure of the franchisee to provide and maintain the performance bond and security fund provided for by Section 17 -52 and Section 17-54 hereof shall be deemed a material breach of the obligations of the franchisee. The right of the City Manager to require increases in the security fund and /or additional guarantees with respect to the obligations of the franchisee shall be a continuing one and may be exer- cised, from time to time, and throughout the term of the franchise agreement. 2. The franchisee shall purchase, and by its acceptance of any franchise granted hereunder, agrees that it will purchase an Owner's Protective Liability Policy in the name of the City of Euless. The franchisee shall procure, furnish and file with the City a policy of insurance approved by the City Attorney covering liability and property damage with the minimum amounts of liability thereunder as established in the franchise agreement. The City shall require that any and all investigation of claims made by any persons, firm or corporation, against the City arising out of any use or misuse of privileges granted to the franchisee hereunder shall be made by or at the expense of such insurer. -23- 3. The insurance policies mentioned above shall contain an endorsement stating that the policies are extended to cover the liability assumed by the franchisee under the terms of this ordinance and the franchise agreement shall contain the following endorsement: 'It is hereby understood and agreed that this policy cannot be cancelled or the amount of coverage thereof reduced without the prior written consent and approval of the City Manager of the City of Euless, Texas.'' 4. All policies of insurance or certified copies thereof and written evidence of payment of required premiums, shall be filed and maintained with the City Secretary during the term of any franchise granted, or any renewal thereof. 5. Neither the provisions of this ordinance nor any insurance accepted by the City pursuant hereto, nor any damages recovered by the City thereunder, shall be construed to excuse faithful performance by the franchisee or limit liability of the franchisee under this ordinance and any franchise agreement issued pursuant hereto. Section 17 -70. USE OF PUBLIC PROPERTY AND CONDITIONS FOR USE 1. A franchise shall first obtain the approval of the City prior to commencing construction on the streets, alleys, public grounds, or places of the City. Applications for approval of the construction shall be in a form provided by the City. A franchisee shall give the City written notice of proposed con- struction at least ten (10) days prior to such construction so as to coordinate all work between the City and the franchisee. 2. A franchisee shall not open or disturb the surface of any street, sidewalk, driveway, or public place for any purpose without first having obtained a permit to so do in a manner provided by the City. 3. A franchisee shall, at its expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from the street or other public place, any property of the franchisee when required by the City by reason of traffic conditions, public safety, street vacation, street construction, change or establishment of street grade, installation of sewer, water pipes, City owned power or signal lights, and tracks or any other type of structure or improvement by any public agency. 4. All wires, conduits, cables and other property and facilities of the franchisee shall be so located, constructed, installed and maintained so as not to endanger or unnecessarily interfere with the usual and customary trade, traffic and travel upon the streets of public places of the City. The franchisee shall keep accurate maps and records of all its facilities and furnish copies of such maps and records as requested by the City. A franchisee shall not place poles or other equipment where they will interfere with the rights or reasonable convenience of adjoining property owners, or with any gas, electric, or telephone fixtures, or with any water hydrants or mains. All poles or other fixtures placed in a street shall be placed in the right of way between the roadway and the property, as specified by the City. -24- r � 5. All wires, cables, amplifiers, and other property shall be constructed and installed in an orderly and workman like manner. All cables and wires shall be installed parallel with existing telephone and electric wires whenever possible. Multiple cable configurations shall be arranged in parallel and bundled, with due respect for engineering and safety consideration. All installations shall be underground in those areas of the City where public utilities providing either telephone or electric service are underground. In those areas where both telephone and electric utility facilities are aboveground at the time of installation, the franchisee may install its service aboveground with the understanding that at such time as those facilities are required to be placed underground by the City, the franchisee shall likewise place its services underground without additional cost to the residents of the City other than as may be granted under the provisions of this ordinance. 6. The City shall street improvement where The notice shall give the ations, or repairs to its commencement of the work, of service. give the franchisee reasonable notice of plans for Saving or resurfacing of a permanent nature is involved. franchisee sufficient time to make any additions, alter - facilities as it deems necessary in advance of the actual so as to permit the franchisee to maintain continuity 7. The franchisee shall, on the request of any person holding a building moving permit, temporarily raise or lower its wires to permit the moving of said building. The expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and the franchisee shall have the authority to require such payment in advance. 8. The franchisee shall have authority ing upon streets, alleys, sidewalks, and other prevent the branches of such trees from coming of the franchisee. All trimming is to be done of the City and at the expense of the franchis such services, however, any firm or individual approval prior to commencing such activity. to reasonably trim trees overhang - public places of the City so as to in contact with the wires and cables under the supervision and direction ee. The franchisee may contract for so retained shall receive City Section 17 -71. CITY APPROVAL OF SUBSCRIBER AGREEMENTS AND SUBSCRIBER SOLICITATION MATERIALS The form of all subscriber agreements for CATV service by and between a subscriber and a franchisee shall be subject to approval by the City. Likewise, the form and content of all solicitation material offered to prospective sub - cribers in whatever form or in whatever manner distributed shall be subject to the prior approval of the City. The approval of the City as used in this Section shall mean and refer to the written approval of the Euless City Manager. No subscriber agreement or solicitation by a franchisee directed to prospective or existing subscribers shall be used without the prior approval of the City. It is the announced intention of the City with respect to the above provided for procedures, but in nowise in limitation thereof, to assure that all solicita- tion material and subscriber agreements contain specific reference to the broad- cast of possibly objectionable material and the availability of converter - parental locking devices for the purpose of limiting reception of objectionable material. -25- ARTICLE IX APPLICANT SELECTION PROCESS Section 17 -72. PROCEDURES FOR APPLICATION AND GRANT OF FRANCHISE Any application for a franchise pursuant to the terms of this ordinance shall be made in form and manner prescribed by the City Council of Euless, Texas, and in conformity with the Charter of such City, ordinances, laws and regulations appli- cable to the grant of public franchises. ARTICLE X Section 17 -73. SEVERABILITY CLAUSE That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any, phrase, clause, sentences, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of com- petent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. Section 17 -74. PENALTY FOR VIOLATION Any person, firm or corporation violating any of the terms and provisions of this ordinance shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined in an amount not to exceed $200.00. Each such violation shall be deemed a separate offense and shall be punishable as such hereunder. Section 17 -75. EFFECTIVE DATE This ordinance shall be in full force and effect from and after its passage and publication as provided by the Euless City Charter and the laws of the State of Texas. PRESENTED AND GIVEN FIRST READING at a regular meeting of the Euless City Council on the 13th day of March 1979; by a vote of 5 ayes, 0 nays and 0 abstentions. GIVEN SECOND READING, PASSED AND APPROVED at a regular meeting of the Euless City Council on the 27th day of March 1979; by a vote of 4 ayes, 0 nays and 6 abstentions. APPROVED: Harold Samuels, Mayor -26- l � ATTEST: Della Houy, City Secretary APPROVED: Q -27-