ORDINANCE NO. 8059
AN ORDINANCE AMENDING THE NON-EXCLUSIVE FRANCHISE TO THE WORLD COMPANY, A KANSAS CORPORATION, TO OPERATE A CABLE SYSTEM PURSUANT TO K.S.A. 12-2001 ET SEQ. AND K.S.A. 12-2006 ET SEQ.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:
Section 1. Section 1 (Definitions) of Ordinance No. 7055 is hereby amended to read as follows:
Section 1. Definitions. For purposes of this Ordinance, the following words and phrases shall have the following meanings:
(a) “Cable Information Service” shall mean a digital two-way interactive packet switched service provided over the Cable System using a cable modem and Internet protocols, which may include separately or in combination, broadband connectivity between the customer, access to the Internet, interactive content and programming, menus, navigational aids, electronic mail, access to newsgroups, a web browser, Website hosting and other enhancements. For purposes of interpretation of this Ordinance, Cable Information Service shall include the Datavision service, and such similar successor service if any, provided by the Grantee on and after the date of adoption of this Ordinance.
(b) “Cable Service” shall mean:
(I) the one-way transmission to subscribers of video programming, or other programming service, and
(ii) subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service.
(c) “Cable System” shall mean a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Service which includes video programming and which is provided to multiple subscribers within the City.
(d) “City” shall mean the City of Lawrence, Kansas.
(e) “Downstream Transmission” shall mean the transmission of signals from the Headend to remote points on the Cable System or to interconnection points on the Cable System.
(f) “Facilities” or “Facility” shall mean any distribution or transmission component of a cable system.
(g) “FCC” shall mean the Federal Communications Commission of the United States government, or such successor agency or department.
(h) “Franchise Area” shall mean the area within the City which the Grantee is authorized to provide services under this Franchise, and any amendments thereto.
(I) “Grantee” shall mean the World Company, its cable division doing business as Sunflower Cablevision and any other divisions or affiliates providing services over the Cable System.
(j) “Gross
Revenues” shall mean for purposes of franchise fee calculations all revenues
received by Grantee from the operation of the Cable System to provide Cable
Services and Cable
Information Services
within the City. Gross Revenues shall include, without limitation, subscriber
revenues, basic monthly service fees, premium service fees, installation and
reconnection fees, leased channel fees, additional outlet fees, converter rentals, remote control
rentals, and fees
for subscription audio services, all adjusted for non-payment. Gross Revenues
shall not include amounts collected for taxes, franchise fees, late fees, local
origination programming or access programming fees, fees for rental of set
top boxes and other equipment or revenues from Non-Cable Services.
(k) “Headend” shall mean a facility for signal reception and distribution on a Cable System including cables, antennas, wires, satellite dishes, monitors, switches, modulators, processors, and all other related equipment and facilities.
(l) “Non-Cable Services” shall mean those services not explicitly defined as Cable Services or Cable Information Services, including without limitation, telephone services.
(m) “Public improvement” shall mean any existing or contemplated public facility, building or capital improvement project, including, without limitation, streets, alleys, sidewalks, sewer, water, drainage, Right-of-way improvement and public projects.
(n) “Public project” shall mean any project planned or undertaken by the City or any governmental entity for construction, reconstruction, maintenance, or repair of public facilities or Public improvements, or any other purpose of a public nature.
(o) “Right-of-way” shall mean present and future streets, alleys, Right-of-way and public utility easements, including public utility easements and Right-of-way dedicated in plats to the City.
(p) “Upstream Transmission” shall mean the carrying of a transmission to the Headend from remote points on the Cable System or from interconnection points on the Cable System.
Section 2. Section 6 (Franchise Fee) of Ordinance No. 7055 is hereby amended to read as follows:
Section 6. Franchise Fee.
a) In partial consideration for the
grant of this Franchise and the premises, the Grantee agrees to pay and the
City agrees to accept as adequate compensation and consideration for the
Franchise granted in lieu of any occupation, license or privilege tax or any
lease or easement charge, a franchise fee as defined herein. The Grantee shall
pay to the City as a Cable Service franchise fee a sum equal to three and
one-quarter percent (3.25%) four percent (4%) of Gross Revenues
derived from the operation Grantee’s Cable System to provide Cable Services
within the corporate limits of the City through June 30, 2007. On and after
July 1, 2007, the Grantee shall pay to the City as a Cable Service franchise
fee a sum equal to five percent (5%) of Gross Revenues derived from the
operation of Grantee’s Cable System to provide Cable Services within the corporate
limits of the City.
b) Beginning in January in January
2000, Grantee shall also pay as a Cable Information Service franchise fee to
the City a sum equal to two percent (2 %) of Gross Revenue derived from the
operation of Grantee’s Cable System to provide Cable Information Services
within the corporate limits of the City, unless the City’s authority to require
such payments is expressly preempted by state or federal law.
c) The franchise fee shall be paid monthly, by electronic transfer to the City, or other method approved by the City and the Grantee, for the preceding monthly period. The Company shall pay the applicable fee to the City within forty-five (45) days of the last day of the applicable month for which a fee payment is due. Payments received after the due date shall be subject to a one-time charge equal to ten percent (10%) of the payment due. The Grantee shall provide with every payment required pursuant to this Section a completed report in substantially the same form as Exhibit A.
d) The franchise fee shall be in lieu of all other licenses, charges, fees or impositions (other than the usual general or special ad valorem taxes or special assessments) which might be imposed by the City for the privilege of operating Grantee’s Cable System and Facilities within the City.
e) The Grantee and the City agree that the City may modify the franchise fee established by this Ordinance as follows: During or after the fifth year of this Franchise, the City may adopt an Ordinance increasing the Cable Service franchise fee to a maximum of four percent (4%). During or after the tenth year of this Franchise, the City may adopt an Ordinance increasing the Cable Service franchise fee to a maximum of five percent (5%). The City shall provide the Grantee with ninety (90) days notice prior to the effective date of any Cable Service franchise fee modification.
Section 3. Sections 1 (Definitions) and 6 (Franchise Fee) of Ordinance No. 7055 are hereby repealed it being the intent to supersede the repealed provisions. It is not the intention of this ordinance to repeal or amend any other portion of the existing Ordinance No. 7055, and all remaining provisions shall remain in full force and effect.
Section 4. This ordinance shall take effect following its adoption and publication as provided by law.
Passed by the governing body this day of , 2006.
Mike Amyx, Mayor
ATTEST:
Frank S. Reeb, City Clerk
Approved as to form and legality:
Toni Ramirez Wheeler, Interim Director of
Legal Services
Publish one time and return one Proof of Publication to the City Clerk.