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HomeMy WebLinkAboutOrdinance - 10141-1999 - Granting Coxcom Inc Doing Business As Cox Communications - 01/28/1999First Reading Itea Mo. 49 January 28, 1999 Second Reading Item Mo. 10 February 11, 1999 ORDINANCE NO. 10141 AN ORDINANCE GRANTING TO COXCOM, INC., A SUBSIDIARY OF COX COMMUNICATIONS, INC., DOING BUSINESS IN LUBBOCK AS COX COMMUNICATIONS WEST TEXAS, THE RIGHT, PRIVILEGE AND FRANCHISE TO CONDUCT WITHIN 1HE BOUNDARIES OF THE CITY OF LUBBOCK A CABLE SYSTEM; AND PROVIDING THEREIN FOR DEFINITIONS; SERVICES, EQUIPMENT AND FACILITIES; A TERJ-..1; FRANCHISE FEES; INSURANCE; OTHER DUTIES; AMENDMENT; ACCEPTANCE OF FRANCHISE; RATES; PUBLICATION; AN EFFECTIVE DATE: AND A SAVINGS CLAUSE. WHEREAS, the City of Lubbock. a home rule municipal corporation of the State of Texas, has received notification of intent to renew its Cable System franchise from CoxCom, Inc., a subsidiary of Cox Communications, Inc., doing business in the City of Lubbock as Cox Communications West Texas; and WHEREAS, the City of Lubbock has heretofore given public notice of such notification and proposal and has received public comment on November 21, 1996, at a public hearing conducted for such purpose and has otheiWise investigated the performance of the franchisee; and WHEREAS, the City Council of the City of Lubbock received such public comment in order to determine whether the existing franchisee hereinafter called "Company," has complied with the conditions of and performed its obligations under its existing franchise agreement to the satisfaction of the City and the Company's Subscribers; and WHEREAS, the City Council further considered the technical developments and performance of the Company's System, programming, other services, cost of service and other requirements; and WHEREAS, the City Council also bas considered the Company's proposal and its annual reports made to the City and to the FCC; as well as industry performance and current state-of-the-art of broadband communications on a national basis; and WHEREAS, the City Council, following such considerations as are hereinabove set forth, has determined that the Company has met such conditions of and performed its obligations under its existing franchise agreement; and c l ( WHEREAS, the City of Lubbock has authority to grant non-exclusive franchises under applicable state law and constitutional provisions pursuant to its authority to operate as a home rule municipality and to regulate and control the use of public streets, alleys, and rights-of-way: and WHEREAS, the Company's commitments hereunder are, in fact, given by the Company in consideration for the grant of authority hereunder to make use of said public streets, alleys, and rights-of-way held by the City of Lubbock in trust for the citizens of Lubbock; and WHEREAS, the City Council, based upon the findings upon the Company's prior perfonnance hereinabove set out and the Company's new proposal, and the report thereon, and the public hearing held upon this matter, finds it to be in the public interest to enter into a renewal of the Company's non-exclusive franchise upon the terms and conditions hereinafter set forth; NOW THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: 1. GRANT. That subject to the terms, conditions, and provisions of this Ordinance and of the City of Lubbock Ordinance No.l0134 , which ordinance is hereby incorporated herein by reference and which shall be a part hereof for all intents and purposes as if said Ordinance No. 10134 were copied herein in its entirety, the City of Lubbock does hereby grant unto CoxCom, Inc., a subsidiary of Cox Communications, Inc., doing business in Lubbock as Cox Communications West Texas, a corporation incorporated under the laws of Delaware and having a permit to do business in the State of Texas, the right, privilege and franchise to conduct within the boundaries of the City of Lubbock, as such boundaries now exist or may be hereafter extended, a Cable System business with the right to enter upon and erect, construct, maintain, extend, repair, replace, and remove in~ Wlder, upon, within, over, above, across, and along any and all present and future public streets, alleys and rights-of-way of the City of Lubbock such equipment and appurtenances thereto as are necessary, proper and reasonably needed for said Cable System business to the extent that the City is authorized to grant such right. 2. DEFINlTIONS. All definitions shall be the same as, and in accord with, definitions defmed in Ordinance No.l0134 of the City ofLubbock. 3. SERVICES. EQUIPMENT AND FACILITIES. (a) The Company shall initially provide the programming services specified in the "Schedule of Services" attached hereto as Exhibit A and incorporated herein by reference for all purposes. Such programming may be changed by Grantee to meet customer satisfaction as it deems fit. 2 I' ! I i i ( ( l (b) The Company shall provide equipment and/or facilities equivalent to or better than the equipment and/or facilities specified in the "Schedule of Equipment/Facilities .. attached hereto as Exhibit Band incorporated herein by reference for all purposes. (c) The Company's Lubbock Cable System sha11 meet or exceed the technical and design requirements of the FCC. 4. TERM. The term of this agreement shall be for fifteen (15) years from the effective date of this Ordinance. 5. FRANCHISE FEE. The Company hereby agrees that it will pay a franchise fee of five percent (5%) of its Gross Revenues, as that term is defined in Ordinance No. 10134. Said franchise fee shall be paid on a quarterly basis, not later than sixty (60) days after the last day of each March, Jwte, September and December. 6. INSURANCE. The Company shall provide liability insurance meeting the requirements of Ordinance No . .l.O.l.3!l and in the amounts stated in the Company's application for franchise, which application is incorporated herein by reference and made a part hereof for all intents and purposes. 7. OTHER DUTIES. The Company shall pay to the City all other monies; install all other services; and perform all other terms and conditions to be performed by the Company pursuant to this Ordinance and Ordinance No. 10134. 8. AMENDMENT. This Ordinance may be amended at any time by amendment of this Ordinance by the City Council of the City of Lubbock after the City and Company agree on such amendment. Provided however that the City may in the exercise of its police power, amend this Ordinance to protect the public health and safety. The Company has the right to request such amendments to this Ordinance by the City Council as it may desire. 9. ACCEPTANCE OF FRANCHISE. The Company shall, within thirty (30) days from the date of final passage of this Ordinance by the City Council of the City of Lubbock, file with the City Secretary of the City of Lubbock, a written statement signed in its name and behalf by officers of CoxCom, Inc., doing business as Cox Communications West Texas, all of whom hereby represent that they are duly authorized to sign and make such an agreement, in the following form: 3 ( c ( -,,.,._. -·-:r:-:-~;..--'"'"~----· ··--... --........ ·--· .. __ ---· --------------·--· "The Honorable Mayor and the City Council of the City of Lubbock: CoxCom, Inc., doing business as Cox Cable West Texas, for itself, and its successors and assigns, hereby accepts the attached Cable System Franchise Ordinance as finally passed by the City Council of the City of Lubbock on the --ll.th. day of February , 19 ~, and hereby agrees to be bound by all of its terms and provisions. COXCOM, INC. BY: TITLE DATE I 0. RATES. Rates to be charged for Cable Service furnished within the City of Lubbock shall be in accordance with rate regulations of the FCC and a copy of such rates shall be placed on file with the City Secretary of the City of Lubbock, which rate schedule shall be updated by the Company as required to reflect current rates during the tenn of this franchise. Both parties hereto recognize and agree that the City may regulate such rates as may be permitted by federal law dwing the tenn of this franchise. However, such regulation shall not be commenced without reasonable written notice to the Company of not less than sixty (60) days. 11. PUBLICATION. The full text of this Ordinance, as finally proposed to be passed shall be published once each week for three (3) consecutive weeks in a newspaper of general circulation published in the City of Lubbock, and the expense of such publication shall be borne by the Company. 12. EFFECTIVE DATE. In accordance with the Charter of the City of Lubbock, this Ordinance shall become effective 30 days from the last publication of this ordinance, which publication was upon the day of , 19_. 13. SAVINGS CLAUSE. That should any section, paragraph, sentence, clause, phrase or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. 4 AND IT IS SO ORDERED. Passed by City Council on first reading the 28th day of January Passed by City Council on second reading the 11th day of February '19.JJ. '19 . dhk~ WINDY SIT~gf\(K1AYOR Ddord/Coxfnm December 3, 1998 5 ( c ( Ordinance Ho. 10141 AGREEMENT This Agreement is made this~ day of Januarv , 1999 by and between the City of Lubbock, a home rule municipal corporation of the State of Texas ("City"), and CoxCom, Inc., a Delaware corporation doing business as Cox Communications West Texas ("Cox"). WHEREAS, the City granted a franchise to Cox to engage in the business of constructing and operating a cable television system in the City (the "Franchise") pursuant to a Franchise Agreement dated March 22, 1984, as amended (the "Franchise Agreement"); and WHEREAS, there are outstanding issues relating to payment of the franchise fee pursuant to the definition of"gross receipts" under the Franchise and the Franchise Agreement; and WHEREAS, the City and Cox wish to resolve these issues in a mutually beneficial manner; NOW, THEREFORE, in consideration of the promises and undertakings herein, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, THE PARTIES DO HEREBY AGREE AS FOLLOWS: / 1. Cox will pay the City the amount of Forty Thousand Dollars {$40,000). Such payment will be made by Cox solely to resolve the issues and not as an admission of any liability or wrongdoing on the part of Cox. 2. The City hereby releases, without limitation, all claims relating to any pending audits of franchise fee payments during the term of the Franchise Agreement insofar as the definition of"gross receipts" is concerned. 3. This Agreement shall bind and benefit the parties hereto and its respective heirs, beneficiaries, administrators, executors, receivers, trustees, successors and assigns. 4. This Agreement is freely and voluntarily given by each party, without any duress or coercion, and after each party has consulted with its counsel. Each party has carefully and completely read all of the terms and provisions of this Agreement. 5. This Agreement shall be governed in all respects by the law ofthe State of Texas. THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE DATE FIRST MENTIONED ABOVE. City ofLubbock: By: Title: <::! tT ~ 1YJ .c.e v CoxCom, Inc., dba Cox Communications West Texas: Title: Ddord/Coxseltle.doc December 2, 1998 Secretary 2 <> * # I p v Limited Basic Cox Plus Expanded Basic Cox Select Premium Channel EXHIBIT A Schedule of Services Cox Communications West Texas Channel Pay-Per-View Channel l ( ---·--..... --.. -··---·~ ............ _ ..... • "' ---·~r . .-_.........., .. ~-···---·~-~~.....,.., .... v•.•oo,.,..,'\_..,.,_.'"'C' __ ;;. .. ·J••~-•-.-~f~J:'S'T"""~,·~~------.. x:~'"""'._.....,.-. EXHIBITB Schedule of Equipment I Facilities LUBBOCK COUNTY 1. Cox will deliver cable service to the Sheriffs office, NationsBank Building and the County Court House, along with five (5) no-charge outlets to the building. Cox will deliver complete basic service, at no cost to the County as done with the City. GOVERNMENT RATE 2. For Government uses of cable service and installation, or other costs connected with the provision of cable service, grantee shall provide installation or construction at cost plus 10 percent. For service, grantee will charge 20 percent less than the grantee charges to any residential customer for such service. If rate is not established for such service, grantee shall charge no more than its actual direct cost, plus 20 percent of such cost. For the purpose of this section, governmental uses or users apply only to, the City of Lubbock, Lubbock County, Lubbock Independent School District, Lubbock Christian University, Wayland Baptist University, South Plains Junior College, and Texas Tech University. In the event the Governmental use is significantly different from residential use and the anticipated costs are significant, grantee agrees to enter into a separate contract with such governmental entity to fully define the contracrual. elements, but the cost formula shall be stated in this paragraph unless both parties agree otherwise. 3. Cox will purchase studio equipment for the City in accordance with the attached lists. (See attached list of equipment). In addition, Cox will give $3000.00 per year after year one, for equipment and software upgrades, for the term of the franchise. Equipment/Software needs will be purchased in two parts over a two year period. Phase I purchases, for delivery the quarter following the renewal of the franchise; Phase 2 purchases, for delivery in the first quarter of the year 2000. Cox will be responsible for buying equipment and will work with the City on equipment needs. Cox will make the final decision on the type of equipment that is purchased for the studio. Page 1 ----__.........~·~·-._.,.-, .. ...., .. ,..., . ._.., ...r•r.T"T!!·-~·-..~·••~·-··~·"'=""~·~-,. IT•rr.r-~~~o~ .. -... , .... -=•·'""""'· =--...,....-..~···----~.: .. ~-· .. --- c ( EXHIBIT B Equipment Needa/ Master Ust 1. Avid MC Express Elite System with 18GB storage with 3 MONITORS, Cables, training, Installation WITH ADOBE AFTER EFFECTS PRODUCTIO 1A. ADD 128 MEG RAM@ $61 per SIMM {4) 18. ADD 18 GIG HARD DRIVE IN TOWE~@ $2,000 per9 gig 1C. Capability of having 314 Umatlc in Avid edit system 2. 12 channel audio mixer included in #1 . 3. Studio permanent lighting 4. Supplemental lighting, portable 5. Consulting engineer • to Install new equipment and to assure compatability o worXing systems. 6. Edit bay tables, setup for 90 degree Avid setup 7. 9850 U-matic Record/Player (1) as backup system/video tape library conversion 8. Sony 9850 U-matic RecordfPfayer (1) as backup system/ And video tape library conve~ion 9. Wireless microphone system (2 microphones) 10. Mobile VTR rack VCAS 5628 11. Add-a-rack system with 4 pull out shelves 12. 8 VHS recorde~ with stack cabinet 13. Event controllerfswitcher (PC based system) 14. Expansion/construction of TV studio 15. Satellite dish upgrade 16. VHS edit bay system 17. Shotgun microphone (2) (may come with cameras) 18. Tripods/dollies (2) studio setup ITE·T40 19. 8 Power Supplies (3) 20. Council Chambers lighting 21 . 8 six·ince monitors & installation-Council Chambers 22. Videonics TM 2000 video ti~emaker 23. Robotic Camera system with 8 camera (2 fixed) 24. Buss Terminal Box for Robotics 25. 8 buss switcher 26. Betacam lNW 100k cameras (2) $15,000 each 27. lJVN1800 video recorde~ (2) 28. lJVN1600 video playe~ (2) 29. Teleprompter 30. F1eld Unit tripods (2) 31. Editing/dubbing monitor (1) 32. Two 9-inch color preview and on-air monitors 33. Three 5-inch black and white camera monitors Page 2 EXHIBIT B Equipment Needs I Phase One 1. Avid MC Express Elite System with 18 GB storage with 3 MONITORS, Cables, training, installation WITH ADOBE AFTER EFFECTS PRODUCTIONS 1A. ADD 128 MEG RAM @ $61 per SIMM (4) 1 B. ADD 18 GIG HARD DRIVE IN TO\NER @ $2,000 per 9 gig 1C. Capability of having 3/4 Umatic in Avid edit system 2. 12 channel audio mixer included in #1 . 5. Consulting engineer -to install new equipment and to assure compatability of all working systems. 6. Edit bay tables, setup for 90 degree Avid setup 7. Sony 9850 U-matic Record!Piayer (1) as backup system/video tape library conversion 8. 9850 U-matic Record/Player (1) as backup system/ And video tape library conversion 10. Mobile VTR rack VCAS 5628 11. Add-a-rack system with 4 pull out shelves 12. 8 VHS recorders with stack cabinet 13. Event controller/switcher (PC based system) 15. Satellite dish upgrade 16. VHS edit bay system 26. One Betacam UVW 1 OOk camera 27. UVW 1800 video recorders (2) 28. UVW 1600 video players (2) 30. Field Unit tripods (2) Page 3 c c c AGREEMENT This Agreement is made this 271h day of August, 2003, by and between the City of Lubbock, a home rule municipal corporation of the State of Texas ("City"), and Cox Com, Inc., a Delaware corporation doing business as Cox Communications West Texas ("Cox"). WHEREAS, the City granted a franchise to Cox to engage in the business of constructing and operating a cable television system in the City (the "Franchise") pursuant to a Franchise Agreement, as amended February 21, 1999 (the "Franchise Agreement"); and WHEREAS, there are outstanding issues relating to the payment of franchise fees pursuant to the timing of the franchise fee percentage increase resulting from legislation passed in February, 1999. WHEREAS, the City and Cox wish to resolve these issues in a mutually beneficial manner: NOW THEREFORE In consideration of the promises and undertakings herein, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, THE PARTIES DO HEREBY AGREE AS FOLLOWS: 1. Cox will pay the City the amount of Fifty Thousand Dollars ($50,000.00) payable in five (5) annual payments of $10,000.00 each on or about January 15, conunencing in 2004. Such payment will be made by Cox solely to resolve the issues and not .as an admission of any liability or wrongdoing on the part of Cox. 2. The City hereby releases, without limitation, all claims related to the Audit of Gross Revenue Franchise Fees for the period of 111198 to 12/31100. 3. This Agreement shall bind and benefit the parties hereto and their respective heirs, beneficiaries, administrators, executors, receivers , trustees, successors and assigns. 4. This Agreement is freely and voluntarily given by each party, without duress or coercion, and after each party has consulted with its counsel. Each party has carefully and completely read all the tenns and provisions of this Agreement. 5. This Agreement shall be governed in all respects by the laws of the State of Texas. y THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE DATE FIRST MENTIONED ABOVE. ATTEST: g.1&cJ. ~ Reb cca Garza, C1ty Secretary COXCOM, INC., dba Cox Communications West Texas Anim/Cox.Agreemcnt August 27, 2003 CITY OF LUBBOCK r{o..'\\-,Q.V..:__ C.~i ) %c.£! ~w.~ "' c..~ )«W,.~ Vice President ef 8:asi:aess OfJefa:tiem ( ( c EQuipment Nltds I Phase 2 3. Studio permanent lighting 4. Supplemental lighting, portable 9. Wireless microphone system (2 microphones) 14. Expansion/construction of TV studio EXHIBIT B 17. Shotgun mia'ophone (2) (mav. come with cameras) 18. Tripodsldolrles (2) studio setup ITE-T40 19. 8 Power Supplies (3) 20. Council Chambers lighting 21. 8 six-ince monitors & installation-Council Chambers 22. Videonics TM 2000 video titlemaker 23. Robotic Camera system with 8 camera (2 fixed) 24. Buss Terminal Box for Robotics 25. 8 buss switcher 26. One Betac:am U'Wt/1 OOk camera 29. Teleprompter 31 . Editing/dubbing monitor (1) 32. Two 9-lnch color preview and on-air monitors 33. Three 5-inch black and white camera monitors Page 4 ---~--·~··········