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HomeMy WebLinkAboutOrdinance No. 2362 ORDINANCE NO. 2362 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING ORDINANCE NOS. 1077 AND 1092 REGARDING CABLE TELEVISION The City Council of the City of Azusa does ordain as follows: SECTION 1. Section 14 . 01(g) of the Azusa Municipal Code is amended to read as follows: " 'Gross Revenues ' shall mean any and all revenue or compensation in any form, including grants, subsidies, exchanges or otherwise, derived directly or indirectly by the Grantee, its affiliates, subsidiaries, parents, and any person in which Grantee has a financial interest, from the operation of the cable television system authorized hereunder, including but not limited to monthly subscriber fees for basic cable service, pay cable and pay-per-view fees, installation and reconnection fees, leased channel fees, interactive service fees, fees paid for transmission capacity, converter rentals, studio rentals, production equipment and personnel fees, advertising revenues and copyright fees; provided, however, that this term shall not include any taxes on services furnished by •the Grantee imposed directly on any subscriber or user by a city, county, state or other governmental unit, and collected by Grantee on behalf of such governmental entity, such as an utility users tax. " SECTION 2 . Section 14.03 . 01 of the Azusa Municipal Code is amended to read as follows: "BASIC SERVICE. The cable television service permitted to be installed and operated shall: (1) be operationally capable of delivering not less than forty (40) audio/visual channels to residential subscribers with the technical capacity for two-way operational communications with audio and video return in compliance with the technical guidelines of the Federal Communications Commission. ( 2) subject to subsection 4 of this section, establish, furnish, operate and maintain within the City of Azusa one fully-equipped stationary color studio. ( 3) subject to subsection 4 of this Section, operate, furnish and maintain at least one mobile studio fully equipped for television production for use for the residents of the franchise area. ( 4) provide, as compliance with the requirements of subsections 2 and 3 of this Section relating to the furnishing of studios, substantially the following equipment: 10 Television sets 2 Studio cameras with cases 2 Portable cameras 2 Portable VTR' s 2 Electro-voice shotgun mikes 1 Audio cassette deck 1 3-gang monitor 1 Buhl mobile multiplexer film chain 1 Panasonic NV9500 editor 1 Panasonic A950 editor controller 4 1/2-inch video tape recorders 7 3/4-inch video tape recorders 1 3/4-inch video tape player 2 Panasonic camera tripods 20 Berkey Colortran studio lights 10 Berkey Colortran light stands Misc. lighting accessories and cables 1 Tripod case 1 Case for special effects generator and CCU' s 1 Video Data Systems titler 2 Panasonic special effects generators 6 Otari audio tape players 1 Berkey Colortrran lighting case 2 Lapel mikes Misc. audio cables and connectors Misc. video cables and connectors ( 5) provide at least one (1) channel, without charge, for exclusive use of the City; ( 6) provide at least one ( 1) channel for educational and public access use. " SECTION 3 . Section 14.03.03 of the. Azusa Municipal Code is amended by adding subparagraphs 5, 6 and 7 to read as follows: " ( 5) notify all residents personally or in writing, twice in advance: once at least twenty ( 20) days, and once, no more than three ( 3) days, before entering private property or road parkway areas in connection with construction or reconstruction of the cable television system. (6 ) properly identify its employees, agents or contractors prior to entry on private property. Identification shall include the name and telephone number of grantee on all trucks and vehicles used by installation personnel. (7) restoring, after performance of work, all property as nearly as possible to its original condition. " -2- sff/ORD7869 :dlw SECTION 4. Section 14. 03.04(1) of the Azusa Municipal Code is amended to read as follows: "With respect to the local government channel, the grantee shall provide, at the request of the City Administrator and at no charge to the City, use of grantee ' s studio, equipment and technical services for production of live and videotape municipal programs, subject to scheduling requirements of the grantee; " SECTION 5 . Section 14 . 05. 01 of the Azusa Municipal Code is amended to read as follows: "PERCENTAGE. Any grantee granted a franchise shall pay to the City, during the term of such franchise, a franchise fee equal to three percent ( 3%) of grantee ' s gross revenues; provided, however the City may increase the franchise fee not to exceed five percent ( 5%) of grantee ' s gross revenues or the maximum permitted by law, whichever is greater; such franchise fee increase may be effectuated by the adoption of a resolution by the City Council, without further public hearing or amendment of this title. No increase in the franchise fee shall be implemented without providing the grantee at least 60 days notice of the increase of the franchise fee. " SECTION 6 . Section 14.08.01 of the Azusa Municipal Code is amended to read as follows: "PERFORMANCE BOND. Grantee shall meet the following performance bond requirements: (1) Concurrently with the acceptance of the award of any franchise, grantee shall file a faithful performance bond in the sum of not less than Fifty Thousand Dollars ($50,000) , payable to the City and executed by a corporate surety licensed to transact business as a surety in the State of California. Such bond shall be conditioned upon faithful performance by grantee of the terms and conditions of the franchise and shall provide that, in case of any breach of material conditions, the whole amount of the penal sum shall be deemed to be liquidated damages and shall be payable to the City by any principal and sureties of the bond. ( 2) The faithful performance bond shall continue to exist for one (1) year following approval of any sale, transfer, assignment or other change of ownership of the franchise, or of the expiration or termination of franchise. ( 3) The bond may be reduced to the amount of Fifteen Thousand Dollars ($15,000 .00) following approval of any sale, transfer, assignment or other change of ownership of the -3- sff/ORD7869 :dlw franchise, or of the expiration or termination of franchise. (4) At its sole option, the City may accept Certificates of Deposit, Cash Deposits, or U.S. Government Securities in lieu of commercial bonds to meet above bonding requirements. Such alternative bonds shall be made payable to and deposited with the City. SECTION 7 . Section 14.08. 05 of the Azusa Municipal Code is amended to read as follows: "INSURANCE REQUIRED. Grantee shall meet the following indemnification and insurance requirements: (1) Without limiting grantee ' s indemnification of City, grantee shall file with the City concurrently with the acceptance of the franchise and thereafter maintain at its own expense during the term of the franchise the following programs of insurance covering its operations under the franchise. Such insurance shall be provided by insurer(s) satisfactory to the City. Insurance policies and certificates evidencing coverage shall name the City, its officers, agents, and employees as additional insureds in respect to grantee ' s operations under the franchise. Such evidence shall specifically identify this franchise and shall contain express conditions that City is to be given written notice by registered mail at least thirty ( 30) days in advance of any modification or termination of any program of insurance: (a) Liability: Such insurance shall be primary to and not contributing with any other insurance maintained by City, shall name the City as an additional insured, and shall include, but not be limited to: ( i ) Comprehensive General Liability insurance endorsed for Premises- Operations, Products/Completed Operations, Contractual, Broad Form Property Damage and Personal Injury with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. If the above insurance is written on a Claims Made Form, such insurance shall be endorsed to provide an extended reporting period of not less than five years following termination of the policy. ( ii) Comprehensive Auto Liability endorsed for all owned, non-owned, and hired vehicles with a combined -4- sff/ORD7869 :dlw single limit of a least One Million Dollars ($1,000, 000) per occurrence. ( iii) Copyright Infringement Liability with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence and insuring against any and all claims, actions, demands and liability by reason of any copyright infringement or arising out of any failure by grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by grantee' s cable television system, or arising out of the exercise or enjoyment of its franchise. ( 2) Failure on the part of the grantee to procure or maintain required insurance and bonding shall constitute a material breach of this franchise upon which the City may immediately terminate or suspend this franchise. " SECTION 8. Section 5 of Ordinance No. 1092 of the City of Azusa is hereby amended to read as follows: "As consideration for granting this Franchise and the rights and privileges thereof, Grantee, during each calendar year or fraction thereof during the term hereof, shall pay to the City of Azusa three percent ( 3%) of its gross revenues from the operation of this system, or such greater percentage as may be established by the City Council pursuant to resolution. No increase of the franchise fee shall be implemented without providing the Grantee at least 60 days notice of the increase of the franchise fee. " SECTION 9. Section 8 of Ordinance 1092 of the City of Azusa is hereby amended to read as follows: "This Ordinance shall become effective thirty ( 30) days from and after its passage and adoption; provided, however, that the Franchise hereby granted shall not become effective unless and until Grantee files with the City Clerk written acceptance thereof and an agreement to be bound by and comply with all of the requirements thereof, and delivers to the City Clerk the bonds and insurance policy required to be furnished, including performance bonds as required by Section 14.08.01, and 14.08.02 of the Azusa Municipal Code in the amount of $50,000.00, each, all pursuant to the provisions of Title 14 of the Azusa Municipal Code. " SECTION 10. The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published as required by law. -5- sff/ORD7869:dlw PASSED AND APPROVED this 4th day of January, 1988 . fr'gW MAYOR ATTEST: CI ' CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF AZUSA I, ADOLPH A. SOLIS, City Clerk of the City of Azusa, do hereby certify that the foregoing Ordinance 2362 was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 21st day of December, 1987 . That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 4th day of January, 1988, by the following vote, to wit: AYES: COUNCILMEMBERS: AVILA, COOK, CRUZ, LATTA, MOSES NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE A6OL 7A. (-S0 IS, CITY CLERK /7 -6- sff/ORD7869 :dlw