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HomeMy WebLinkAboutOrdinance - 2004-O0148 - Granting NTS Communicaitons Right To Conduct Business, Cable System - 12/07/2004II First Reading December 7. 2004 Item No. 32B Second Reading January 13, 2005 Item No. 38 ORDINANCE NO. 2004-00148 AN ORDINANCE GRANTING TO NTS COMMUNICATIONS, INC., THE RJGHT, PRNILEGE AND FRANCHISE TO CONDUCT WITHIN THE BOUNDARIES OF THE CITY OF LUBBOCK A CABLE SYSTEM; AND PROVIDING THEREIN FOR DEFINITIONS; SERVICES, EQUIPMENT AND FACILITIES; A TERM; FRANCHISE FEES; INSURANCE; OTHER DUTIES; AMENDMENT; ACCEPTANCE OF FRANCHISE; RATES; PUBLICATION; AN EFFECTNE DATE; AND A SAVINGS CLAUSE. WHEREAS, the City of Lubbock, a home rule municipal corporation of the State of Texas, has heretofore received on July 16, 2004, an application for a Cable System franchise from NTS Communications, Inc.; and WHEREAS, the City of Lubbock has heretofore given public notice of such notification and proposal and has received public comment on December 7, 2004, at a public hearing conducted for such purpose and has otherwise investigated the qualifications of the applicant; and I WHEREAS, the City Council of the City of Lubbock received such public comment in order to detennine whether a Cable System franchise should be granted to NTS Communications, Inc. (hereinafter called "Company"); and II 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 Company's proposal, and the report thereon, and the public hearing held upon this matter, finds it to be in the public interest to grant the Company a non-exclusive Cable System franchise upon the tenns and conditions hereinafter set forth; NOW THEREFORE: I 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. 10134, which ordinance is hereby incorporated herein by reference and whlch shall be a part hereof for all intents and purposes as if said Ordinance No. IO 134 were copied herein in its entirety, the City of Lubbock does hereby grant unto NTS Communications, Inc., a corporation incorporated under the laws of 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, under, 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. DEFINITIONS. All definitions shall be the same as, and in accord with, definitions defined in Ordinance No. 10134 of the City of Lubbock. 3. SERVICES. EQUIPMENT AND FACILITIES. The Company shall provide the services, equipment and facilities contained in its application and any additions thereto filed with the City and said Application is incorporated herein as Exhibit A to this Ordinance. (a) The Company shall initially provide the programming services specified in the "Schedule of Services" attached hereto as a part of 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. (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 a part of Exhibit A and incorporated herein by reference for all purposes. (c) The Company shall provide Public, Educational and Governmental (PEG) access and equipment as provided in Exhibit B to this Ordinance. ( d) The Company's Lubbock Cable System shall meet or exceed the technical and design requirements of the FCC. (e) The Company shall meet the requirements of the Construction Map and Plan mutually agreed upon by the Company and the City of Lubbock, which Construction Map and Plan shall be incorporated herein as Exhibit C to this Ordinance and which shall supersede any prior map and plan submitted by the Company. 4. TERM. The term of this agreement shall be for fifteen (15) years from the effective date of this Ordinance. 2 5. FRANCHISE FEE. The Company hereby agrees that it wil1 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, June, September and December. I 6. INSURANCE. The Company shall provide liability insurance meeting the requirements of Ordinance No. 10134 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 maybe 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 ofNTS Communications, Inc., all of whom hereby represent that they are duly authorized to sign and make such an agreement, in the following form: "The Honorable Mayor and the City Council of the City of Lubbock: NTS Communications, Inc., 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 __ day of ______ , 200_, and hereby agrees to be bound by all of its terms and provisions. DATE 3 NTS COMMUNICATIONS, INC. BY: TITLE 10. 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 during the term 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 6th day of January , 200~. 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. AND IT IS SO ORDERED. Passed by City Council on first reading the 7th day of December , 2004 . Passed by City Council on second reading the 13th day of January , 200.=5_. UGAL,MAYOR ATTEST: ~..o tf-C-«;, ~ ecca Garza, City Secretary APPROVED AS TO CONTENT: ·'" """" Lou Fox, City Manager 4 APPROVED AS TO FORM ~~ '"\ I I --~ ..,,,.-,-, \/' , .di.r;ll~\c 1 .. c ~l;{t:\£A~ Donald G. Vandiver, Attorney of Counsel ~ Ddord/NTScableFmn November 22, 2004 5 ..,, I C C Ordinance No. 2004-00148 Exhibits A & B NTS" Communications Video Pricing· · Basic Package -Monthly Charge $39.95 Inc:llldes: Installation charge - 1 Drop $45.00 Additional Drops -Charged at NTS per hour Service $50.00/hr Rates. Minimum 1 Hour. After 1st hour charges are bnled in 1h hour Increments lubboclc City C.Ouncll UPN (KUPT) FOX (KJTV) Univision (KBZO) Prime rrme Christian Broadcasting FOX News CNN CNN Espanol CSPAN Bloomberg ESPN 2 Outdoor Ufe HGTV Soapnet UfetJme Home Shopping History Channel A&.E Tech TV cartoon Network Disney GAS FamllyNet Hallmark Comedy Cent-al USA SdA TBS BET Muchmuslc TV M1V HITS Gospel Music Television HDNET Spike NBC CBS l<GLR Telemundo (IO<TQ) IBN MSNBC CNN HN CNNfn CSPAN 2 Weather Oiannel Fox Sports Southwest Outdoor Channel TLC E Entertainment QVC Food Networl( History International OVation National Geographic Boomerang Nlclcelodeon Noggin ABCFamfly TV land TQ1 Fox Movte Channel PAX TNT VH1 CMT VH1 aasslc Varsity Television HDNET Movies PBS (KTXf) ABC USO KJTV-CA RF CNBC CNN International Newswond International Court TV ESPN ESPN Oassic Sports Speed Channel Women's Entertainment Oxygen Shop at Home Travel channel Biography Channel Intematlonal Channel Discovery Toon Disney NlckToons Family Land Anlmal Planet Game Show Networi( AMC FX Bravo WGN MTV MTV2 Great American Country we Independent FIim Channel PLUS YOU RECEIVE 45 DIGITAL MUSIC CHANNElS and access to Pay-Per-View. PPV per use charges will apply, ... . • Basic Plus Package -Monthly Charge· $49.95 Installation charge -1 Drop $45,00 Addltlonal Drops -Charged at NTS per hour Service $SO.DO/hr Rates. Minimum 1 Hour. After 1st hour charges are b!lled In 1/ 2 hour increments Indudes: Basic Package Plus the following channels - ESPNews Fox Sports Digital 1 Fax Sports Dlgital 2 Fox Sports Digital 3 Fox Sports World FO)( Sports World Espanol CSTV Fuel Golf Channel Hor.;eradng Tennis 0,annel Do It Yourself Network Fine Living Style Goodlife Network The Health Network Inspiration Network Inspirational Life Wisdom Television Recovery Network Product & Infom,ation Network Video Options Monthly Movie Plex Discovery Health Discovery limes Discovery l<lds Discovery Science Discovery Wings Discovery Home BBC America Receiver Options -per box /per month $ 4.95 1st Receiver box Is free with purchase of video service. (Remote included) AIi packages require a receiver fur each television. On Screen Caller ID *Currently not avallable $ 4.95 Customers must have NTS local dial tone service, Caller ID and Video Services. Premium Movie Channels and Packages Cinemax HBO Package Indudes: HBO HBO 2 We.st HBO Latino Cinemax Package lndudes: HBO anemax HBO St:am,ax HBO Thriller Max HBO Comedy HBO Signatllre HBO Max HBO Wmax HBO Action Max Showtime/Movie Channel Package Includes: Showtime Showtlme Extreme Showtfme Beyond Showtime Showcase Showt1me Next Showtlme Women The Movie Channel Extra Sundance Channel HBO Zone HBO Family HBO Outermax HBO Moremax Showtlme Too ShO'ff'time Family The Movie Channel FUX $ 9.00 $ 7.00 $12.95 $12.95 $12.95 ..... .. StarzlEricore Package Indudes: St:arz Starz Blaclc St:arz Encore Actlon Encore Love Stories Combine and Save: 1st Premium Movie Package 2nd Premium Movie Package 3rd Premium Movie Package 4th Premium Movie Package Starz Onema Starz Family Encore True Stories Encore Mystery Starz Theatre Starz Warn Encore West. Encore Westerns $12.95 $12.95 $11.95 $10.95 $ 9.95 Premium padcages do not include Basic, Basic Plus or OneSource Advantage"" Packages Premium packages may be added to Basic, Basic Plus Service or 0neSource Advantage"' Packages Pay-per-View -Per Viewing Video, Internet and Local Service Packages ,, OneSource Advantage Tl'! Service Bundle - Installatlon indudes: Phone lnstallatlon, 1 drop for video And 1 drop for data. Monthly Includes: Basic Video Package, NTS-Onllne® High-Speed Internet and Digital Voice Service. High-Speed Internet service Indudes Up to 2Mb and 5 E-Mail Accounts. Digital Voice Service Includes: Local Dial Tone, Caller ID Name/Number, Call Waiting, Caller ID on Call Waiting, Anonymous Call Rejection, 3-Way calling, Call Forwarding, Call Return, Auto Redial and 200 minutes of Long Distance calling to the lower 48 U.S. States, Additional Drops -Charged at NTS per Hour Service Rates $50.00/hr $ 3.95 Monthly . $99.85 Minimum 1 Hour. After 1st hour charges are bllled In ½ Increments. Ordinance No. 2004-00148 NTS Franchise -PEG Equipment for CNC-2 As part of the franchise agreement, NTS will provide equipment to the City for CNC-2. This equipment is valued at $194,000 and will be phased in over a six-month period (See attached from Lubbock Audio Visual.) NTS has worked with the City and with Lubbock Audio Visual in tweaking the City's original request for equipment, and it appears that we are all in agreement. NTS will provide the following: • Mobile Field Package (Allows us to do a much better job when we are shooting off site. Also gives us redundancy in the studio if we had a major equipment failure there.) • Portable Teleprompting Package • AVID Editor (We currently have an AVID, this will allow both Tom and Mike to edit at the same time and to provide redundancy.) • Duplication System to duplicate DVDs (We will gradually phase out our VHS duplicating.) • Portable Light Kit (We currently have no portable lights.) • Playback Server (We currently use a DVD playback system. This will be a digital hard drive system.) • Matrox Bulletin Board System (This will replace our current PowerPoint/computer system and give a much better output.) • Mixer (This will replace our current ageing mixer and give us more inputs.) • DVD Field Cam (Gives us a second smaller camera for field work. We have one DVD cam already.) • Assorted Software (This will upgrade our current production software.) Equipment will be purchased from Lubbock A/V (a sole source vendor) and they will do the installation. Lubbock AfV also will be the vendor for maintenance and repair on the equipment. NTS also will carry CNC-2 on channel 2 and will provide fiber from City Hall to their building on Main Street, and from there the signal will go to their head-in on Loop 289. The City also will have the capability to broadcast live from the EOC on our NTS channel. l r··. r 2 i GIG RIG SKB Portable Rack LOT INSTALLATION/INTEGRATION: Includes Actual Installation and Assembly of Equipment, all Cables and Connectors Required to make System Operational, On-Site Operational Training. f , 1,300.00 .i .. ' .... -· ... I i ! i I .i. I I I , 950,00 ! I I I . ........ _ J __ 2,600.00 0.00 i 950.00 0.00 0.00 0,00 0.00 0.00 .. --·-·-·•-·------· • -·-···-··--• ·-.•.. --·---·------·-. ····-. .. ---. --·-··· -.• --.. ·-., -·-•--·----·" --------I. -----·-·-· ·-·. ----·· .. , 0.00 0 •---•• •------•-•n• ------•• o -•••--••----------• ~••· 0 M ___ -----•••-•--•-~ ·-•• -----• --~---••---+------_ .. ___ , __ •·----~ -----I---••··-----------·-----···-----·~---------------~------0.00 0.00 -----+----•--------------•--•---. .,._.,.._ _______ , _____ ---------•••••••-f-• ---~-----•••~----••••r•-• -- 0.00 '---------~-----0.00 SUBTOTAL 74,900.00 SALES TAX RATE % SALES TAX 0.00 - Add SHIPPING & HANDLING TOTAL DUE $74,900.00 (i) ·; Quotation Lubbock Audio Visual, Inc. 2120 Avenue Q Date: October 27, 2004 .'-lumber: BW102704-05 Lubbock, TX 79408 (806) 744-2559 Fax: (806) 747-6939 i To: I Ship to (if different address) · NTS Communications \ City of Lubbock i Daniel Wheeler i 797-0687 Extension 4126 1 danw@ntscom.com SUBMITTED BY Brian Wagnon VALID THRU 30 Days j I DELIVERY j J _ 7-21 Days ARO i DESCRIPTION QTY. 1 ! AVID Media Composer Adrenaline System I SHIP VIA Deliver/Install 1 -.. -T ~-;!~-Custom Keyb-oard ···--·--------- I -----·---------------------·--- 1 I F.0.8. Origin UNIT PRICE 22,860.00 ·r-. ---- -. l ' ..... ~:OD__ i 5,900.00 ! xwaooo HP Dual 3.06 Ghz Xeon, NVIDIA FX1100, 2GB RAM, 80 GB System Drive, DVD-RW/+R Drive ••-0 ----•• ~ o• -•--•-• •-•---•• T u -• • •-• ~--•----•• •-" . ----+· 2 4 ! 00791481 NEC FE990BK FE990-BK 191N CRT 18VIS-.20MM - I .24MM 1792X1344 -~-- ; rs73/320 AVID 73GB Ultra 320 Quiet Drive 310.QQ I 850.00 +-----------• .... --··--•·. ····+·---·------- 1 I PVM14L2U SONy 14" Production Monitor -'" --··--·-------· ·----.. -! Opti~n _____ --~E-~~?-~~~~TED Editing Furniture _____ _ 1 I LOT INSTALLATION: Includes Actual Installation, Integration, I AU Cables and Connectors Required to Make System ! Operational. ! --· j ! 1,190.00 +--·---I 1,890.00 ,J __ -- 500.00 I i .I SUBTOTAL; I SALES TAX RATE % ! SALES TAX : Add SHIPPING & HANDLING ' I TOTAL DUE I TERMS Standard TOTAL 22,B60.00 0.00 5,900.00 620.00 3,400.00 1,190.00 0.00 500.00 0.00 34,470.00 0.00 $34,470.00 • I I --, I ,j i . ·< ' i ·1 ,Quotation ate: October 27, 2004 Number: BW102704-12 To: NTS Communications City of Lubbock Daniel Wheeler 797-0687 Extension 4126 danw@ntscom.com SUBMITTED BY VALIDTHRU ., •••-• ••-r-••••-•••• •-- Brian Wagnon 30 Days ......, _______________ QTY. - DELIVERY 7-21 Days ARO DESCRIPTION Portable Light Kit 2 SK1 .1 N-3 BRIGHTUNE Portable Light Kit ~--- ---· ··- ---- -- ~--·-----------.--•·· Lubbock Audio Vfsual, Inc. 2120 Avenue Q Lubbock, TX 79406 {606) 7 44-2559 Fiiix: (806) 747-6939 I Ship to (If different address) i i i I j I ) ..... --·· ----J SHIPVJA F.O.B. TERMS ------------·--·-------··-·-··· ... ------·------- Deliver/Install Origin Standard ---··------·---_,,_ ····-··--·------··-·-~--------··· -- UNIT PRICE TOTAL --· ., ---···--- 0.00 ----- 2,890.00 5,780.00 r---••• -~---. ·- 0.00 ---· ·- 0.00 ----·- 0.00 0.00 -- 0.00 0.00 ~j --- SUBTOTAL 5, SALES TAX RATE% ·-··-------· --·-- SALES TAX 0.00 ----..... ---------~- Add SHIPPING & HANDLING ------·-· ----·· -... ·-·-·----- TOTAL DUE $5,760.00 ·-·~·-· -r• • •••-••-•--•• ••• •• !Quotation ate: October 27, 2004 Number: BW102704-03 Lubbock Audio Visual, Inc. 2120 Avenue Q Lubbock, TX 79408 (806) 744-2559 Fax; (806) 747-6939 To: Ship to (if different address) NTS Communications City of Lubbock Daniel Wheeler 797-0687 Elctension 4126 danw(@.ntscom.com ... ! '·--~~~~~!.:'°~~~-~--_ .. __ VA_LID_:_l:iR~ ________ _?_EL~~~'..-···--_.·-·--·--~~~p ~~~ _ .. _____ ··--··-··-!_·_~·~:_ _ TERMS -- 7-21 Days ARO Deliver/Install ·--·-----··•--·-·--~---------'------------·· Brian Wagnon 30 Days Origin Standard -'------·---------···----·--···"•"•"•". _] l_ QTY. DESCRIPTION UNIT PRICE TOTAL ·---·- MATROX INFONET TV 0.00 ·---·--·-·-·---~--·--------- 1 INFONET TV MATROX Information Channel System 7,590.00 7,590.00 Includes: Matrox INFONET TV Boards and Software, HP XW4100 CPU, 19" NEC Computer Monitor, 14" PVM14L1U 13" Color Production Monitor - 1 LOT INSTALLATION: lndudes Actual Installation, Integration, 1,200.00 1,200.00 ! ! (1) Day On-Site Operational Training. i -· ·--~--·-· 0.00 0.00 --- 0.00 -··· ------- 0.00 ·-·--···-.. --T••••-- 0.00 -···---------: 0.00 ' . -·---·---~----H--~••• -,------~ ··-----.. , --·-------·---... ~·-·---~ ·--······ ·-·-- -_ .. , .• , .. ~,7;~~~~-. ·1 SUBTOTAL -~---~-·--------... I SALES TAX RATE % I ·-· -···-· --------· - SALES TAX 0.00 I ·----·-·· -·-. -· --. 7 Add SHIPPING & HANDLING ' -------... --I TOTAL DUE $8,790.00 i ------ . ' /Quotation ,ate: October 27, 2004 Number: BW102704-15 To: NTS Communications City of Lubbock Daniel Wheeler 797-0687 Extension 4126 d&nw@ntscom.com SUBMITTED BY VALIDTHRU DELIVERY Lubbock Audio Visual, Inc. 2120 Avenue Q Lubbock, TX 7940B (806) 7 44-2559 Fax: (806) 747-6939 I Ship to (if different address) l I SHIP VIA F.0.8. TERMS --. -------1--------1--------·------·-··· ·-···-----···--·----~--~---~-----..... --.----.. .-·-~-- Deliver/Install Standard j I I Brian Wagnon 30 Days .... --------~-------__.___ _______ __.__ _______ ---______ ...__ ______ _ 7-21 Days ARO Origin -L.,,-.•• --· ... _,, ____ ---~--• QTY. DESCRIPTION UNIT PRICE TOTAL ·----------j-------------------------------~-----~--------·--~ ..... - CANON DV FJELD CAM 0.00 ~---------1-----------------~ -------+---------------! 1 GL2 CANON Digital Camcorder 2,510.00 2,510.00 ------------------------t---·· ·-·------·----- 1 Shell 03 KATA Soft Carry Case 125.00 125.00 1-----·----------------t--------t----------- 1 3130/755BK BOGEN Fluid Head Tripod 385.00 ------1-----------------------+---------1----· --- 1 VL 1 Oi CANON Video Light 64.00 385.00 64.00 -~··-------t------------------------1-----------------< ! ~---~---_-___ 1 ======:=B=P=-=53=5==C=A=N=O=N=B=a=tt=e=ry=i=o=r v==L 1=0=i ====================:~~~~~~~~~9-5 __ ._oo=====--::_-__ -_-_:9 __ :-~-::---l! 0.00 ; --------+-----------------------1--------;------······ -~ 0.00 j ----------~~----------------------·....,___ ____________ ~-------------· SUBTOTAL SALES TAX RATE% 3,179.00 ----· ····-~~ ··- 1------. .. SALES TAX 0.00 i--------------------·-·· -- Add SHIPPING & HANDLING TOTAL DUE $3,179.00 ... u Cl) • ... D.. ,:, -- ..J U) I-z C B • ii ~ I II I ...... ::IE: ;,) ! ~ Ordinance Bo. 2004-00148 Exhibit C '-~ I ... , I I Gil ,aNt & TH'iJtrr, I si \ 1 December 23, 2005 VIA CERTIFIED MAIL Ms. Rebecca Garza City Secretary City of Lubbock 1625 131h Street Lubbock, Texas 79401 Re: Notice of Application for State-Issued Certificate of Franchise Authority Dear Ms. Garza: This letter constitutes notice pursuant to section 66.004(b), Public Utility Regulatory Act (PURA), that NTS Communications, Inc. ls fillng today with the Texas Public Utlllty Commission Its Applicatkm for a State-lasued Certificate of Franchise Authority to provide cable and video SEtf'Vice. A copy of that Application is enclosed. Pursuant to Section 66.004(b) of PURA, NTS' municipally issued franchise with the City will terminate on the date the Commission issues the State-Issued Certificate of Franchise Authority. Please contact me if you have any questions. General Counsel Enc. Cc Hon. Marc McDougal Ms. Anita Burgess CMRRR# 7099 3220 0008 3172 5682 5387 W. Loop 28~ Lubbock, TX 79414 1.888.6S8.2150 fa><.: 886 .797.9B87 www .ntscom .com ' i • 1' • ~-.: • Exhibit 1 11