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Cable TV Granting a Franchise to Univision Cable Systems Inc 11/1/82Fr , lo- 15 -8�. AN ORDINANCE GRANTING A CABLE TELEVISION FRANCHISE TO UNIVISION CABLE SYSTEMS, INC. :s 0 WHEREAS, the Board of Commissioners for Harnett County adopted on the 1st day of'June 1981 an ordinance entitled "An Ordinance Providing for the Method of Franchising the Construction, Operation and Maintenance of a Cable Television System in the County of Harnett, State of North Carolina" (hereinafter referred to as "Methods Ordinance ") and, WHEREAS, the Board of Commissioners of Harnett County adopted on the 8th day of September of 1981 certain amendments to said ordinance, and again adopted certain amendments to said ordinance on the 18th day of October 1982, and WHEREAS, the Board of Commissioners of Harnett County have received two proposals for the installation and operation of a Cable Television System or Systems in the County of Harnett and have actively solicited additional proposals through personal contacts; and WHEREAS, the County of Harnett received two proposals to—sepve franchise areas within the County which were from the following:: Billy R. Jones of Atlanta, Georgia Univision Cable Systems, Inc., and WHEREAS, the proposals by the bidders listed above offered service to most of the populated areas of the unincorporated portions of the County; and WHEREAS, a public hearing relative to the granting of a CATV franchise was held at the County Office Building in Lillington after due legal advertisement on the 18th day of October, 1982; and WHEREAS, the ordinance set forth in paragraph one above and the amendments thereto require that certain findings be made before granting a franchise by ordinance, said findings relate to the franchisee's legal, financial and technical qualifications as well as the adequacy and feasibility of franchisee's construction arrangements', and addit 1 ionally that findings be made as to what is in the best interest'of the public and potential subscribers; and WHEREAS, the Board of Commissioners of Harnett County have made investigation into the legal, financial and technical expertise of all applicants and as to what is in the best interest of the public and -1- potential subscribers (throughout the unincorporated areas of the County) and the Board of Commissioners of Harnett County have made and do make the following findings: 1. That the proposal of Univision Cable Systems, Inc. offers Cable Television service to a great number of citizens of the County and at the lowest cost to the consumer. 2. That the proposals of both applicants offer equivalent channel coverage to the consumer and equivalent capacity to expand coverage in the future; except that the offer of Billy R. Jones makes less coverage available for the basic service rate. 3. That Univision Cable Systems, Inc. has furnished proof of financial ability to construct a system to serve Harnett County through financial statements as required by the ordinance. 4. That applicant, Univision Cable Systems, Inc., has previously constructed systems in Duplin, Onslow and Pender Counties and by its record of performance has shown the technical expertise to construct and operate the proposed system. 5. That investigation has shown applicant's construction proposal to be adequate and feasible in that it offers a 400 MHZ system, with cascades within acceptable limits, all to design specifications set forth in its proposal; and WHEREAS, based upon the above findings of fact the Board of Commissioners has concluded that it is in the best interest of the public and the potential subscribers that a non - exclusive franchise for the operation of a Cable Television System in the unincorporated areas of Harnett County be granted to Univision Cable Systems, Inc. NOW, THEREFORE, BE IT ORDAINED by the Board of Commissioners of Harnett County as follows: 1. That Harnett County (hereinafter referred to as "the County ") hereby grants the non - exclusive right, privilege, and franchise to Univision Cable Systems, Inc. (hereinafter referred to as "Univision ") to construct, operate and maintain a cable television system in the unincorporated portions of Harnett County for a period. of fifteen (15) years from and after the date of acceptance of -this -2- ordinance and for such purposes to use any roads, alleys or other public property of the County but subject always to present and future ordinances pertaining thereto. The County expressly reserves the right to grant other rights, privileges, and franchises to any other person or entity at any time during the term hereof. 2. The rights, privileges, and franchises hereby granted are ,°expressly subject to the following: (A) All provisions of an ordinance heretofore adopted by the Board of Commissioners of Harnett County on June 1, 1981, as amended on September 8, 1981 and October 18, 1982, entitled "An Ordinance Providing for the Method of Franchising the Construction, Operation and Maintenance of a Cable Television System in the County of Harnett, State of North Carolina" (hereinafter referred to as "the Methods Ordinance ") all provisions of said ordinance being hereby specifically incorporated herein by reference; and (B) All provisions of the franchisee's application for franchise which application was prepared for and submitted to the County of Harnett (the application is hereafter referred to as "proposal of Univision ") a copy of the proposal is on file with the office of the County Clerk, all provisions of which are specifically incorporated herein by reference as well as a map previously furnished as part of a proposal by Future Cablevision of North Carolina, Incorporated which is incorporated by reference into the proposal of Univision and referred to therein, which map is also on file in the office of the County Clerk. 3. That the right, privilege and franchise herein granted to Univision is subject to the following additional conditions: (A) That Unvision accept any franchises offered by the Towns of Angier, Coats, Erwin and Lillington in accordance with the terms of any ordinances passed by those towns. (B) That the CATV system to be constructed by franchisee in the franchise areas of Harnett County, Angier, -3- Lillington, Coats and Erwin include a minimum of 175 miles of energized cable upon completion of areas A and B described in franchisee's proposal; said provision not to apply in event of employment of microwave distribution system. (C) That Univision not overbuild North Carolina Communications, Inc., in the area currently served by North Carolina - Communications, Incorporated or its successor in interest or offer service to existing customers of North Carolina Communications, Inc. until it has exhibited evidence to the County Board of Commissioners of Harnett County that it is offering service to all other areas of the County with thirty or more homes per cable mile as that term is defined in the ordinance referred to in paragraph 2A above and to the basic service area shown on its map incorporated as part of its proposal to the County and additionally that Univision satisfy the Board of Commissioners that it is in the best'interest of the County and potential customers that it be permitted to overbuild North Carolina Communications, Incorporated in its franchise area (the purpose of this restriction being to maximize CATV service within the County). However, overbuilding initially shall be permitted to the extent necessary to run trunk lines through said area to serve other potential customers. (D) That Unvision offer to customers within the county, set top converters with a 35 channel capacity or greater with a lighted display; that said set top converters be addressable from the head end so as to permit selective scrambling and unscrambling of premium channels. (E) That Univision offer additionally infra red remote control channel selectors at a reasonable rental rate, comparable to that offered by other systems in the state of North Carolina, and said rate to be approved by the Board. -4- (F) That each satellite earth station dish installed by Univision be a minimum of five meters in diameter. (G) That the system to be installed have standby power capabilities at the cable power supplies as well as at the head ends, which power supplies will enable the system to carry a back up power support a minimum of four hours in event of power outages. (H) That the system installed be the 400 MHZ cable system described in the proposal of Unvision. (I) That Univision provide and activate two -way capability of the system to be installed when and if either local government or the educational facilities request it for public purposes; however, in the event of installation of a terrestrial system, said mandatory activation shall not exceed 108 of the total number of trunkline amplyfiers, and in the event of an AML distribution system said capability shall be mandatory only as to one receiving hub and then only for one channel. (J) That the cable system to be installed meet the following technical standards at all points: Frequency Stability ±11 kHz (3 hrs.) 24 -hour Signal level 6dB stability overall difference in 6dB signal level Hum modulation 18 System carrier -to -noise 43dB Terminal isolation 30dB Cross - modulation 5ldB Composite Triple Beat 53dB (NCTA- 008 -0477) (C W Carriers) Second -order intermode 60dB Chroma delay 250 n sec (K) That Univision offer CATV service to all currently existing public schools in the Franchise areas of the -5- County, and the Towns of Angier, Coats, Erwin and Lillington with the exception of Mary Stewart School which if coverage is not justified by residential density can be covered under Section 8B of the Methods Ordinance. (L) That in addition to complying with the service area requirements set forth in the County Methods Ordinance in Section 8(b), in the event that franchisee elects to use a master AML head end in lieu of separate head ends, then the franchisee is to install AML receivers in locations of the county with sufficient residential density (that is density which can be reached from an AML site by extending energized cable over surrounding areas having an average density of 30 residential units per mile) to enable franchisee to receive the same gross annual yield on investment for the AML site and energized cable as franchisee is receiving troughout the then existing countywide system inclusive of the towns of Angier, Coats, Lillington and Erwin. (M) The installation and construction of the Cable TV System shall conform to the standards set forth in the National Electric Code as it appears in the North Carolina State Building Code. (N) That franchisee will expand the channel offering to customers at a rate of not less than one channel per year. 4. That Univision, by accepting the rights hereby granted, covenants that it will perform and keep all acts, covenants and obligations imposed, represented or promised by the provisions of this ordinance, the - Methods Ordinance, and the proposal of Univision, including the completion of the construction of their plants, and the activation of their systems in accordance with, to the extent of, and within the periods of time shown on the construction schedule in the proposal of Univision, and any failure to do so will be grounds for termination of the rights hereby granted in accordance with the CATV Ordinance. r 5. The effective date of the ordinance shall be the date of its final adoption. 6. The effective date of the Franchise shall be as set forth in Section 6C of the Methods Ordinance and that date shall be utilized for commencement of the time table for construction contained in the proposal. 7. The acceptance of the franchise ordinance by Univision shall constitute representations and covenants by said franchisee that: (A) It accepts and agrees to all of the provisions of this Ordinance and those instruments incorporated herein by reference; (B) It has examined all of the provisions of this and the Methods Ordinance and waives any claims that any provisions hereof are unreasonable, arbitrary or void. (C) It recognizes the right of the County to make reasonable amendments to the franchise ordinance or franchise agreement during the term of the franchise, provided that no such change shall compromise the franchisee's ability to perform satisfactorily its obligations or rights under this ordinance or the franchise agreement. It further recognizes and agrees that the County shall in no way be bound to renew the franchise at the end of franchise term; (D) It acknowledges that its rights hereunder are subject to the police powe general ordinances of the public; and applicable general to such power; (E) In addition to the r of the Coun necessary to it agrees to laws enacted standards of ty to adopt and enforce the safety and welfare comply with all by the County pursuant construction, maintenance and operation set forth in the Methods Ordinance, this ordinance and in its proposal, it will meet the standards of the CATV Industry related to signal quality and technical standards of construction, operation and maintenance of the system and the state of the art of the industry; -7- (F) With reference to the provisions of Section 9H of the Methods Ordinance, it will make single installations of its standard community service facilities in accordance with the terms of said section at such additional County owned facilities as may from time to time be designated by the County Manager. 8. When the franchise ordinance is accepted by Univision as provided in the Methods Ordinance, this Ordinance together with the proposal of Univision and the Methods Ordinance shall constitute the Franchise Agreement (as defined in Section 3.I of the Methods Ordinance) with respect to Univision; when conflicts exist between the three documents constituting the franchise agreement the controlling provision shall be that provision most favorable to the CATV consumer. 9. If any section, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. FIRST PASSED THIS the Igth day of , 1982. SECOND PASSAGE THIS the 1ct1 day Of? November , 1982• , Board of Corggis ADOPTED UPON SECOND READING THYS they 1st day of , Board o 1982. ssioners