AN ORDINANCE RELATING TO A COMMUNITY ANTENNA TELEVISION SYSTEM AND SERVICE (CATV) IN THE CITY NATOMA, KANSAS, AND GRANTING A NON­ EXCLUSIVE FRANCHISE TO MID-CONTINENT CABLE, INC., A KANSAS CORPORATION, TO CONSTRUCT, OPERATE AND MAINTAIN A COMMUNITY ANTENNA TELEVISION SYSTEM AND SERVICE WITHIN THE CITY OF NATOMA, KANSAS.

Section 1. Authority. This ordinance is passed and approved by the city council of the City of Natoma, Kansas, and enacted pursuant to the laws of the State of Kansas.

Section 2. Satisfactory Qualifications. The city has considered, in a public proceeding, the legal, character, financial, technical and other qualifications of the applicant and have found Mid-Continent Cable, Inc., to be qualified in all respects to construct, own and operate a community antenna television system in the city. The city council has also considered the adequacy and feasibility of the construction arrangements proposed by Mid-Continent Cable, Inc., and has found them to be satisfactory.

Section 3. Franchise Grant. Pursuant to law, a non-exclusive franchise is granted to Mid-Continent Cable, Inc., a Kansas corporation, (grantee) to construct, own and operate a community antenna television system in the city. The nonexclusive franchise is granted for a period of 15 years, and shall vest ail the rights, privileges and immunities of a CATV system franchise this Mid-Continent Cable, Inc.; however, the non-exclusive franchise shall be subject to and conditional upon all of the terms, duties and obligations found in the laws of the State of Kansas, rules and regulations of the Federal Communications Commission and of this ordinance.

Section 4. Rights Conferred by Franchise.

(a)   This ordinance confers upon grantee the non-exclusive rights, authority, power and franchise to establish, construct, acquire, own, operate and maintain a community antenna and closed­ circuit electronic (CATV) system within the city, and to render, furnish and sell community antenna television service to the inhabitants, of the city, and its environs and to use and occupy the streets and other public places within the corporate limits of the city, as the same now exists or may hereafter exist for its CATV system including the right to enter and construct, erect, locate, relocate, repair and rebuild, in, on, under, along, over and across the streets, alleys, avenues, parkways, lanes, bridges and other public places in the city, all towers, poles, cable, amplifiers, conduits and other facilities owned, leased or otherwise used by grantee for the furnishing of CATV service within the city, during the continuance of the franchise hereby granted, and in accordance with the laws and regulations of the United States of America, the State of Kansas and ordinances and regulations of the City of Natoma, Kansas.

(b)   The poles used for the grantee’s distribution system shall be those erected and maintained by any one authorized to maintain poles in the streets or public ways when and where practicable. It is contemplated that standard pole attachment agreements will be entered into. In any areas where electric or telephone utility poles are not available the grantee will install poles for the cable system.

Section 5. Installation of CATV System.

(a)   The grantee shall have commenced and accomplished a significant construction of the cable system facilities authorized in this ordinance within nine months after the effective date of this ordinance, and shall thereafter equitably and reasonably extend energized trunk cable to such percentage of its franchises area as will accomplish completion of the CATV system within one year after the effective date of this ordinance.

(b)   The installation of the CATV system shall be in accordance with the requirements of the National Electric Safety Code of the American Insurance Association (successor to the National Board of Fire Underwriters) and all applicable laws, ordinances, rules and regulations of the FCC, the State of Kansas, and of the city affecting electrical installations and buildings, now or hereinafter in effect.

(c)   The grantee, subject to the rights of adjoining property owners, at its expense, shall have the authority to trim trees upon and overhanging streets, alleys, sidewalks and public places of the city, so as to prevent the branches of such trees from coming in contact with the wires and cables of grantee, all trimming to be done under the supervision and direction of the city and at the expense of the grantee.

(d)   The grantee shall at its expense protect, support, temporarily disconnect, relocate or remove any property of the grantee located upon streets, rights-of­ way and easements of the city, when required by the city because of traffic conditions, public safety street vacation, street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power liens, signal lines and tracks or any other type of structures or improvements by the city, if grantee fails to do so, the city may cause the necessary work to be completed and grantee shall pay the city the cost hereof within 10 days of receipt of an itemized account of such cost.

Section 6. Relocating of Property. The grantee, at the request of any person holding a permit issued by the city, shall temporarily remove, raise or lower its wires or cable to permit the moving of buildings or equipment. The expense of such temporary removal, raising or lowering shall be paid by the person requesting the same, and the grantee may require such payment in advance. The grantee shall be given not less than 48 hours advance notice to arrange for such temporary wire or cable changes.

Section 7. Rates and Charges.

(a)   All rates and charges enacted by the grantee shall be fair, just and reasonable. Grantee shall keep on file at all times with the city clerk a statement of its most recent charges and rates which shall include but shall not be limited to installation, disconnection, reconnection, monthly rental, monthly rental for each additional receiver.

(b)   In the event grantee desires to change any of the charges or rates from any of the amounts on file with the clerk, grantee shall give the city a 30 day written notice of its intention to change the rate or charge and the amount of the change shall be set forth in the notice. The city shall have the right to review the proposed rate or charge and in the event the city deems the charge unreasonable, unfair or unjust, the city shall notify grantee of its decision and a time and place shall be specified by the city for the grantee to produce evidence of justification for the rate or charge change. The decision of the city as a result of the hearing of the evidence presented by grantee shall be final.

Section 8. Complaints. The city directs the grantee to make investigation of, and resolve, all complaints regarding the quality of service, equipment, malfunctions and similar matters within 48 hours after notification, and further than grantee shall maintain a local business office or agent, within the city, for these purposes. The city further designates its city clerk as the official of the city that has the primary responsibility for the continuing implementation of complaint procedures. The city directs the grantee to give notice of the procedures for reprint and resolving complaints to each subscriber at the time of the initial subscription to grantee’s CATV system.

Section 9. Indemnification. The grantee agrees to hold and save the city harmless from any and all liability that may arise out of the construction, maintenance, operation or use of grantee’s system and works and the providing of such services and to provide and keep in force adequate liability Insurance therefore, to the extent of bodily injury limits of $100,000 - $300,000 and a property damage limit of $100,000. Grantee shall also provide and maintain similar insurance under a broad form automobile policy, with the foregoing limits, and workman’s compensation insurance with Kansas statutory limits. All of the above-mentioned insurance shall be issued by a company authorized to do business in the State of Kansas and shall be provided before the grantee, its successors or assigns thereof, shall commence the construction or other operations mentioned in this section. The city shall notify the grantee’s representative or employee in the city, if any, within 10 days after presentation of nay demand or claim that may arise, whether by suit or otherwise against the city. Grantee shall maintain on file with the city clerk at all times a current certificate of insurance. All insurance policies shall provide for not less than 30 days’ notice of cancellation.

Section 10. Payment to City. In consideration of the rights, privileges and franchise hereby granted, and as compensation to the city for the use of its public ways and places by the grantee, and to properly regulate the activities of grantee, the grantee shall, on or before the first day of January of each year pay to the city a minimum fee of $25 and shall, subject to the provisions hereinafter made, on or before the 1st day of January and the last day of July of each year to which this franchise is effective, pay to the city a sum equal to three percent of the gross subscriber revenues for community antenna television service within the then existing corporate limits of the city, for the preceding six month period ending on the last day of December and the last day of June, respectively, less the minimum fee theretofore paid. The books of the grantee shall be open to inspection by the city at all times to verify the accuracy of the computation and correctness of the report which shall accompany the payment. Grantee shall keep books and records pursuant to established practices, using generally accepted auditing procedures and provide the city with certified audits annually.

Section 11. Franchise Termination. The city may terminate the franchise and all rights therein granted in the event the grantee or the successors or assigns thereof shall fail to comply with any of the terms or provisions of the ordinance. The city may exercise such right of termination by mailing notice thereof by registered mail to the grantee, unless within 30 days after such mailing full compliance with the terms and provisions of the ordinance has been affected.

Section 12. Publication Costs. The grantee will pay to the city a sum to cover the ordinance publication cost when presented with the bill by the city.

Section 13. Tower Rights. It is expressly understood and agreed by and between the grantee and the city that the city shall have the right to erect and maintain a commercial antenna on the tower erected by the grantee, it being also understood that the antenna shall not interfere with grantee’s CATV service.

Section 14. Local Offices. Grantee shall maintain a local office or agent to provide adequate service during all usual business hours, and have a listed telephone so that messages, complaints and requests for service or repairs or adjustments may be received at any time without toll charges.

Section 15. Assignment. Sale and Transfer of Franchise. The grantee shall not assign, sell or transfer its plant or system to another, nor transfer any rights under this franchise to another, without the city council’s approval. No sale or transfer shall be effective until the vendee, assignee or lessee has filed in the office of the city an instrument duly executed reciting the fact of such sale, assignment or lease and accepting the terms of the franchise ordinance and agreeing to perform all of the conditions thereof. This provision shall not be deemed applicable to any assignment made by the grantee by way of a mortgage or other security encumbrance.

Section 16. Severability. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held illegal, invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. The council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that anyone or more sections, subsections, sentences, clauses or phrases be declared illegal, invalid or unconstitutional. The invalidity of any portion of its ordinance shall not abate, reduce or otherwise affect any consideration or other obligation required of grantee by the franchise granted hereunder.

Section 17. Compliance with FCC Rules. Any modifications of the provisions of this franchise resulting from amendment of the Federal Communications Commission rules and regulations governing Park 76, shall be incorporated into this franchise within one year of adoption of the modification, or at the time of franchise renewal, whichever occurs first. It will be the grantee’s responsibility to keep the city informed of all FCC rules.

Section 18. This ordinance is passed and adopted in conformity with K.S.A. 1974 Supp. 12-2006 et sag., and in addition to other provisions herein set out the Mid-Continent Cable. Inc., shall file with the city and obtain approval thereof a proper map showing and describing the exact location or proposed location of all of its facilities within the city’s streets, alleys and public ways and secure from the property city officials approval for the erection of either above ground or below ground facilities so as not to interfere with existing public utility facilities now located or hereafter located pursuant to other public utility franchises, excluding herefrom the necessity of securing prior approval of the city if and when the corporation obtains pole attachment agreements with existing public utilities for the joint use of poles that may be now existing or may be hereafter erected by such public utility franchise other than by this ordinance.

Section 19. All ordinances and parts of ordinances in conflict herewith are hereby repealed as of the effective date of this ordinance, excluding, however, any and all public utility franchise heretofore granted to public utilities, including utilities regulated by the State Corporation Commission.

(12-3-1981)