APPENDIX B – FRANCHISESAPPENDIX B – FRANCHISES\ORDINANCE NO. 1267

AN ORDINANCE OF THE CITY OF STOCKTON, KANSAS, GRANTING CA TV, INC., DBA STOCKTON TV CABLE CO., SUCCESSORS, LESSERS AND ASSIGNS, FOR A TERM OF 20 YEARS, THE RIGHT, AUTHORITY, POWER AND FRANCHISE TO ESTABLISH, CONSTRUCT, ACQUIRE, MAINT AIN AND OPERATE A CLOSED-CIRCUIT ELECTRONIC SERVICE WITHIN THE CITY OF STOCKTON, KANSAS, AND TO RENDER, FURNISH AND SELL CLOSED-CIRCUIT ELECTRONIC SERVICE THEREFROM, WITHIN THE CITY OF STOCKTON, KANSAS, AND ENVIRONS· THEREOF, AND TO USE AND OCCUPY THE STREETS AND OTHER PUBLIC PLACES OF THE CITY OF STOCKTON, KANSAS, FOR SUCH CLOSED-CIRCUIT SYSTEM.

Section 1. That there is hereby granted to CATV, Inc., DBA Stockton TV Cable Co., (hereinafter called the “grantee”) and to its grantees, successors, lessees and assigns for the full term of 20 years from the date hereof, the non-exclusive rights, authority, power and franchise to establish, construct, acquire, maintain and operate a Closed-Circuit Electronic System within the City of Stockton, Kansas, (hereinafter called the “city”), to render, furnish and sell closed-circuit electronic service from such system 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 Closed-Circuit Electronic System, including the right to enter and construct, erect, locate, relocate, repair and rebuild in, under, along, over and across the streets, alleys, avenues, parkways, lanes, bridges and other public places of the city, all towers, poles, cables, amplifiers, conduits, and other facilities owned, leased, or otherwise used by the grantee for the furnishing of closed-circuit electronic service within the city and environs thereof during the continuance of the franchise hereby granted.

Section 2. The service or system shall be designed for color and black and white transmission and shall carry at least three networks.

Section 3. The grantee shall use existing pole facilities where possible, of existing utilities under negotiated contracts or agreements with such utilities for such use. Provided, that the grantee, without further contract shall have the right to use existing pole facilities belonging to the City of Stockton, Kansas, as long as such use is under the city’s supervision and does not interfere with existing facilities.

Section 4. That any pavement, sidewalk, or curbing taken upon on any and all excavations made by the grantee shall be done under the supervision and direction of the governing body of the city under permits issued for work by the proper officials of the city and shall be made and done in such manner as to give the least inconvenience to the inhabitants of the city and the public generally and all such pavements, sidewalks, curbing and excavations shall be replaced and repaired in as good condition as before, with all convenient speed, by and at the expense of the grantee, which shall at all times make and keep full and complete plats, maps and records showing the exact locations of its facilities located within the public ways of the city. The grantee shall not place poles or other fixtures where the same will interfere with any gas, electric or telephone fixture, water line or fire hydrant and all such poles or other fixtures placed in any street shall be placed at the city’s direction.

Section 5. It is expressly understood and agreed by and between the grantee and the city that the grantee shall indemnify and save the city harmless from all loss sustained by the city on account of any suit, judgment, execution, claim or demand whatsoever, resulting from negligence on the part of the grantee in the construction, operation, or maintenance of its electronic system in the city. The city shall notify the grantee’s representative in the city within 30 days, after the presentation of any claim or demand, either by suit or otherwise, made against the city on account of any negligence as aforesaid on the part of the grantee.

Section 6. That the grantee shall have the authority to promulgate such rules, regulations, terms and conditions in the conduct of its business as shall be reasonably necessary to enable the grantee to exercise its rights and perform its services under this franchise and to assure an uninterrupted service to each and all of its customers, insofar as possible. The grantee shall have the right and power to fix, charge, collect and receive reasonable rates for closed-circuit electronic service furnished within the corporate limits of the city, provided that the governing body of the city reserve the right, at all times during the existence of this franchise, to fix and determine maximum rates to be charged and the city and its inhabitants by the grantee to the extent that the law provides for such right, power and authority by the city, and provided that grantee shall not, after the effective date of this ordinance, increase any rate without the prior approval of the governing body, and further provided that if grantee requests a rate increase in anticipation of providing additional service such increase shall not take effect until the additional service is available.

Section 7. That the city reserves the right of reasonable regulation of the erection, construction, installation, or operation of any facilities by the grantee and to designate where such facilities are to be placed within the public ways and places.

Section 8. That in the event that at any time during the period of this franchise the city shall lawfully elect to alter or change the grade of any street, alley, or other public way, the grantee upon reasonable notice by the city shall remove, relay and relocate its poles, wires, cables, underground installations and other fixtures at its own expense.

Section 9. That the grantee shall at all times during the life of this franchise be subject to all lawful exercise of the police power by the city and to such reasonable regulation as the city shall hereafter by resolution or ordinance provide.

Section 10. Grantee shall furnish one outlet and service to each public school building free of charge within the city when and if such buildings are within reasonable distance from the grantee’s facilities.

Section 11. That in consideration for the rights, privileges and franchise hereby granted, and as compensation to the city for the use of the public ways, poles, and places by the grantee, and in lieu of all occupation and license taxes, the grantee shall, on or before the last day of January and the last day of July each year in which this franchise is effective, pay to the city a sum equal to two percent of the gross receipts from the sale of cable service within the then existing corporate limits of the city and its environs for the preceding six months period ending on the last day of December and the last day of June, respectively. The amount of any federal excise tax or Kansas sales tax shall not be included as a part of the gross receipts upon which the payment of two percent is to be computed. Service may be dropped at any time by any subscriber, who will thereafter owe only for service already used.

Section 12. The city reserves the right to terminate this agreement and rescind all rights and authority herein granted for cause. If the grantee shall fail to comply with any of the provisions of this ordinance or default in any of its obligations, except for causes beyond its reasonable control, and shall fail within 30 days after written notice from the city to correct such default or non-compliance, the governing body shall have the right to revoke this ordinance and all rights of the grantee hereunder; provided, however, that such action shall be declared only by written decision of the city commission.

Section 13. That all provisions of this ordinance shall be binding upon the grantee and all successors, lessees and assigns of the grantee, whether expressly stated herein or not, and the rights, authorities, powers, grants, and privileges secured by this ordinance to the grantee shall be held to inure to the benefit of the grantee and all successors, lessees and assigns of the grantee.

Section 14. That the franchise herein granted shall be subject to and controlled by all of the provisions of section 12-2001 of the Kansas Statutes Annotated.

Section 15. This franchise may be assigned by the grantee in accordance with the laws of the State of Kansas as the same may exist at the time when any such assignment shall be made.

(2-17-1981)