06011981576
HARNETT COUNTY BOARD OF CQMMISSIONERS MEETING, JUNE 1, 1981
CALL TO ORDER
PRAYER
MINUTES APPROVED
BOB ETHERIDGE
DON DUPREE, DOT
RESOLUTION ADDING
STREETS IN PINE
HILL SUBDIVISION TO
SECONDARY ROAD
SYSTEM
MUTUAL AID AGREE-
MENT WITH CUMBER-
LAND 'COUNTY
The Harnett County Board of Commissioners met in regular session
on Monday, June 1, 1981, in the Commissioners Room, County Office
Building, Lillington, North Carolina, with the following members
present: M, H;. Brock, RUdy'Collins,, Bill Shaw,= Lloyd'Stewart, & Chairman
Jesse Alphin presiding. Vanessa W. Young, Assistant Clerk to the
Board, and Edward H. `McCormick, County Attorney, were also present.
Chairman Jesse Alphin called the meeting to order at 9 :15 a.m.
Representative Bob Etheridge led the morning prayer.
The minutes from the Harnett County Board of Commissioners meeting
of May 18, 1981, were approved as read.
Bob Etheridge, Representative with the North Carolina House,
appeared before the Board and reported on legislative matters
concerning local government.
Don Dupree, District Engineer; with the N. C.Department of Trans-
portation, appeared before the Board to discuss road matters and
situations in Harnett County,
Commissioner Shaw made a motion that the Board adopt the following
resolution. Commissioner_ Brock seconded the motion and it carrie
Now, therefore, be it resolved that the Harnett County Board of Commissioners
request the North Carolina Department of Transportation to add Oak Street,
Elm Street, and Pine Street in Pine Hills Subdivision, Lillington, North
Carolina to the Secondary Road System for Maintenance.
s/s Jesse Alphin, Chairman
Tom Lanier,.Assistant Director with the Emergency Office, appeared
before the Board and requested the Commissioners to adopt the
following resolution entering into a mutual aid agreement between
the fire departments of Cumberland and Harnett Counties. Mr :lanier
originally appeared before the Board on December 18, 1978, and
requested the Board to enter into this agreement. At that meeting,
the Board instructed Mr. Lanier to obtain a written acknowledgement
from each of the fire departments in the County supporting this
agreement. Mr. Lanier presented to the Commissioners a certificate
from each of the fire departments in the County stating that they
support the mutual aid agreement. Commissioner Collins made a
motion that the Board adopt the following resolution concerning
the mutual aid agreement. Commissioner Shaw seconded the motion
and it carried with a unanimous vote:
RESOLUTION AMENDING FIRE PROTECTION CONTRACTS AND AUTHORIZING EXECUTION OF MUTUAL
AID PACT
WHEREAS, resolutions have been received from the following corporations
providing fire protection services:
Anderson Creek Volunteer Fire and Rescue, Inc.
Black River Rural Fire Department, Inc.
Buies Creek Volunteer Fire Department, Inc.
Grove Rural Fire Department, Inc,
Dunn Fire Department, Inc.
Erwin Fire Department and Rescue Squad, Inc,
Flat Branch Volunteer Fire Department, Inc.
Flatwoods Community Fire Department, Inc.
Lillington Volunteer Fire Department
Spout Springs Rurual Fire Department, Inc.
Summerville Fire Department, Inc.
AND WHEREAS, said resolutions authorized an addition to the existing
'fire protection contract between each such corporation and the county as set
forth below;
AND WHEREAS, the County desires to add such provision to existing contracts
for fire protection services and to enter into a mutual aid pact with Cumberland
County;
NOW, THEREFORE,BE IT RESOLVED by the County of Harnett, that the County,
with the consent of an agreement of said corporations;, amends the existing
fire protection contracts with each such corporation named above by adding the
following paragraph to each fire protection contract:
"Notwithstanding any other provision in the contract for
fire protection services between the County of Harnett
and this corporation, it is agreed that fire protection
services may be provided by the corporation outside the
district when done pursuant to a mutual aid pact duly
approved by this corporation, and the County of Harnett."
0 7 1
SALE OF A USED
175 B INTERNA-
TIONAL CRAWLER
LOADER
BUDGET MESSAGE
BUDGET AMENDMENT,
CODE 10- 510 -74
TAX SUPERVISOR'S
REPORT
EARL JONES, TAX
COLLECTOR
TAX ATTORNEY'S
REPORT
CABLEVISION
RESOLVED FURTHER that the Chairman of the Board and the Clerk to the
Board be and they are hereby authorized and directed to sign documents neces-
sary to carry out the intent of this resolution.
RESOLVED FURTHER that the Chairman of the Board and the Clerk to the
Board be and they are hereby authorized and directed to sign a "Mutual Aid
Agreement between the Fire Departments of Cumberland County and Harnett
County :'adopted by Cumberland County on the 20th day of November, 1978.
HARNETT COUNTY BOARD OF COMMISSIONERS
s/s Jesse Alphin, Chairman
M. H. Brock, County Manager, informed the Board that the County
had a piece of landfill equipment that needs to be declared
surplus. Mr. Brock continued to explain that Harnett County had
received a proposal from North Carolina Equipment Company to
purchase this piece of equipment. Commissioner Brock made a
motion that: 1) the County declare the used 175 B International
Crawler Loader, Serial No. 16050, surplus property; 2) the county
propose to accept the offer from North Carolina Equipment Company;
and 3) M. H. Brock, County Manager, be authorized to proceed to
negotiate an offer for the purchase of this piece of equipment
and advertise it for upset bids as in accordance with G. S. 160A-
269. Commissioner Shaw seconded the motion and it carried.
M. H. Brock, County Manager, appeared before the Board and
presented the budget message on the F. Y. 1981 -82 budget. A
discussion period followed the presentation of the budget.
Larry Knott, Operations Officer with the Harnett County Sheriff's
Department, appeared before the Board, and requested that
Code 10- 510 -74 be increased by $3,900 to reflect money the County
received for the insurance payment on a 1979 Chevrolet which was
wrecked. Commissioner Brock made a motion that Code 10- 510 -74 be
and it is hereby increased by $3,900. Commissioner Stewart
seconded the motion and it carried.
Thomas Allen, Tax Supervisor, appeared before the Board and
reported on the activities of his department for the month of May,
1981
Earl Jones, Tax Collector, appeared before the Board and reported
on the activities of his department for the month of May and his
plans for June.
The following Tax Attorney's report was filed with the Board.
SUITS COLLECTED, DISMISSALS, CANCELLATIONS AND EXPENSES:
Names Suit No.
Anderson Creek:
Suvolia & Annie M. Knight 81 CVD 0188
Averasboro:
James Henry Ferguson
Paulette H. Graham
Howard Burlan Stevens,
Jr., to Vernies & Averia
H. Lee and Ben G. & Pat
Best
Amount Attorney's
Collected Fee
$338.61 $55.00
80 CVD 0879 $695.79
$90.00
No Suit Started $226.05 $25.00
No Suit Started $ 35.25 $15.00
Barbecue:
William Louis and Bobby 81 CVD 0234 $136.79 $55.00
Singleton
Stewart's Creek:
Sam Williams SD -3355 $722.91 $10.00
$2,155.40 $250.00
Dallas Pope, appeared before the Board as spokesperson for the
Cablevision Committee which was appointed by the Board at its
meeting of April 21, 1981. Mr. Pope reported to the Board that
it was the Committee's unanimous recommendation to approve the
Cablevision Ordinance. Commissioner Brock made a motion that
the Board adopt the following 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. Commissioner Collins seconded the motion and it passed
upon the following vote: AYES: 5 NOES: 0 ABSENT: 0
ABSTAINED: 0
578
AN ORDINANCE PROVIDING FOR THE
METHOD OF FRANCHISING THE CONSTRUCTION,
OPERATION AND MAINTENANCE OF A CABLE TELEVISION
SYTEM IN THE COUNTY OF HARNETT
STATE OF NORTH CAROLINA
BE IT ORDAINED BY the Board of Commissioners of the County of Harnett,
State of North Carolina:
Section 1. Short Title: This ordinance shall be known as the Harnett County
Cable Television Ordinance.
Section 2. PURPOSE AND AUTHORITY.
In the public interest and for the promotion of the public health, safety,
welfare and convenience and pursuant to statutory authority contained in N.C.G.S.
Section 153A -137 and other applicable laws, the following rules are adopted,
which rules set forth the coalitions, limitations, restrictions and requirements
under which a person may construct or cause to be constructed, operate and
maintain a cable television system and engage in the business 'of providing a
cable television service in the unincorporated areas of Harnett County.
Section 3. DEFINITIONS.
A. General: For the purposes of this Ordinance, the following words,
phrases,, terms, abbreviations and their derivations shall have the meaning given
herein. When not inconsistent with the context, words used in the present tense
include the future tense, words in the plural number include the singular number, .
words in the singular number include the plural number, and words in the
masculine, feminine.or neuter gender include each of the other genders. The
word "shall" is always mandatory and not merely directory.
B. Access Channels shall mean those channels which are to be kept
available by the franchisee for partial or total dedication to public access,
educational access, local government access or leased access.
C. "Cable Television System" shall mean any facility that, in whole
or in part, receives directly, or indirectly over the:air and amplifies
or otherwise modifies the signals transmitting programs: broadcast by one
or more television stations, radio stations or other electronic signaler
and distributes such signals by wire or cable to subscribing members of the
public who pay for such service, but such term shall not include (1) any
such facility that serves fewer than 75 subscribers, (2) any such facility
that serves only the residents of one or more apartment dwellings under
common ownership, control or management, and commercial establishments located .
on the premises of such an apartment house, and (3) any such facility that
serves only the residents of an overnight residential business
establishment (e.g. hotel). motel, .etc.) or any commercial establishments or
private organizations or associations that services only its own employees,
members of the general public upon its own premises, or its own members as the
case may be.
D. "County" shall mean the body politic of the County of Harnett as
heretofore established and constituted by Legislative enactment of the State
of North Carolina. •
E. "Board of Commissioners or Board" ahall.'meaa the governing body of.
the Bounty of Harnett.
F. "County Manager" shall mean the chief administrative officer of the
County.
G. "FCC" shall mean the Federal regulatory agency or agencies having
regulatory jurisdiction over cable television.
H. "Franchise" shall mean authorization granted pursuant to the terms
of this Ordinance to construct, operate, and maintain a cable television system
within all, or a specified area, in the unincorporated areas of Harnett County.
The Franchise shall be granted in the form of a franchise ordinance (herein also
sometimes referred to as "the franchise agreement ") separate and distinct from
any license or permit required for the privilege of transacting and carrying
on business within the County as required by other ordinances and laws of the
County. The franchise ordinance, together with this ordinance, shall contain
the terms and conditions upon which any cable television system may be operated
in the County.
1. "Franchise Agreement" shall mean the ordinance adopted by the Board
of Commissioners designating a franchisee for the operation of a cable
television system in a designated basic area within the County, and designating
the particular terms and provisions thereof, as shall supplement this ordinance
to include by incorporation the Application for franchise made by the franchisee.
J. "Franchisee" shall mean the person, firm or corporation granted a
franchise by the Board of Commissioners under this ordinance and their lawful
successors or transferees.
K. "FCC Regulations" shall mean the present and future valid rules and
regulations pranulgated by the FCC and applicable to cable television systems
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in the County.
I. 11a9.ss subscriber revenues" shall mean any and all compensation and
other consideration in any form received by the franchisee arising from the
sale of services offered under the authority of its franchise, provided said
term shall not include any sales, service, rent, occupational or other excise
tax to the extent said taxes are charged separately in' addition to the regular
monthly service and any additional services and are remitted to a taxing
authority.
M. "Cable Office" shall mean the business office of the franchisee which
shall be conveniently accessible to the public and located in the franchise area
N. "Person" shall mean any person, firm, partnership, association,
corporation, or organization of any kind.
0. Sh »11 ", 'Must" are mandatory, whereas "may" is permissive.
P. "Street or Road" shall mean the surface of and the space above and
below any publicly or privately owned or maintained property .or any public street,
right of way, highway, freeway, bridge,. lane, path, alley, court, sidewalk,
cartway, drive, existing as such within the franchise area.`
Q. "Subscriber" or "User" shall mean any person lawfully receiving,
-for any purpose any service of the franchisee's cable television system.
R. "Normal Drop" shall mean the'conductor -which provides subscriber
interconnection to an existing or required Cable Television System feeder leg
with..a cable length not to exceed 200 feet, including the cable length required
within the subscriber's premises, as measured from the nearest street or road
right of way line. The term "Normal Drop" as used in this ordinance shall
mean a cable' television signal cable and appurtenances of such construction;
installations and system interconnection as provides signal levels of the
quality and strength consistent with the technical quality requirements of the
FCC rules. It may be overhead or underground. Drops in excess of the normal
length shall be in accordance with the provisions of the line extension policy
in this ordinance.
S. rResidential Units Per Mile" shall mean the-total number of
residential units not already passed by energized cable, of any franchised
CATV system which units are located .on the..property.directly. adjacent to
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two consecutive miles of street or other public rights of way, as measured
along established streets or rights of way contiguous with the present system
of streets and rights of way, the total residential units thus obtained shall
be divided by two to obtain the "residential units per mile". Example: 8
apartments in one building count as "8 residential units ".
T. "Potential subscribers" shall mean those households, commercial,
industrial or institutional establishments within a reasonable distance from
the trunk cable where service could be provided to them; said distance shall
be determined by the standards of the CATV industry in effect at the time the
determination is made.
U. "Property of Franchisee" shall mean all property owned and installed
or used by the franchisee in the operation of a cable television system or
service in the county under authority of a franchise granted pursuant to this
Ordinance.
V. "Extension costs" shall mean one time prorata energizing charges
and cable costs, inclusive of direct and indirect overhead so as to reflect the
equivalent actual cost of equipment, wire and installation labor above and
beyond the cost of a normal drop.
W. "CATV" shall mean cable television.
X. "Two -War Capacity" shall mean that such system shall maintain a
plant having technical capacity for audio and video return communications.
Section 4. FRANCHTSE REQUIRED.
It shall be unlawful for any person to own, operate, or construct a cable
television system in unincorporated areas of the County or to provide cable
television service to any subscriber within the County, except pursuant to a
franchise agreement granting the right to do so between the County and the
Franchisee, which agreement shall incorporate by reference and be subject to this
ordinance to the same extent as though this ordinance in its entirety is a part of
said agreement. Notwithstanding the provisions of this section, the franchisee
may designate others under contractual arrangement, to construct, own, and
lease to the franchisee the physical assets of the cable television system,
provided, however, that the franchisee shall be fully and solely responsible
under the terms of this Ordinance and the franchise agreement. Neither the
franchise, nor any rights of the franchisee arising thereunder shall be assigned,
_ without the prior written consent of the Harnett County Board of Commissioners.
Nothing in this section is intended to prevent the Board from granting a pre-
existing permitted use franchise to any CATV system in operation in the unin-
corporated areas of the County at the time of passage of this ordinancne under such
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terms and conditions as will enable that CATV to maintain its then current customers
for a sufficient length of time to recoup its investment.
Section 5. PROCEDURE FOR GRANTING A FRANCHISE.
A. Applications. Applications for construction, - operation, and
maintenance of CATV systems shall be submitted to the Harnett County Board of
Commicsioners.
B...Hearing. The Board-shall have a full and complete public hearing
affording all interested parties, including members of the public, the right
to be heard. The Beard may at the conclusion of the hearing or some subsequent
time, grant a franchise to the applicant whose proposed system is in the best
interest of the public and the potential subscribers within the area covered by
the franchise.
C. Authority. The Board may accept applications for an area less than
the whole of the unincorporated area within the County.
D. Contents of Application. The application, filed by a person seeking
issuance of a 'franchise, shall contain:
1. The name and address of the applicant. If the applicant is a
partnership, the name and address of each partner must be submitted. If the
applicant is Ha corporation, the application shall state the names and addresses
of its directors, officers, parent and subsidiary companies and of all
shareholders awning as much as five percent (5 %) of the outstanding stock of any
class, and shall include a certified copy of its articles of incorporation
together with all ammendments thereto. The application shall state the names
and address of all persons whose beneficial interest in the applicant 'amounts
to five percent (5 %) or more, regardless of how said interest is held.
2 A statement demonstrating the applicant's experience' and expertise,
if any, in establishing a cable television system and in providing a CATV
service, including the names and locations of any other CATV systems currently
or formerly constructed, operated or maintained by the applicant.
3. A copy of applicant's audit for the fiscal year next preceding
the application date prepared by a certified public accountant and an income
statement and balance sheet for the fiscal quarter next preceding the application
which maybe either audited or unaudited, which shall show the applicant's
financial status. and its financial ,ability to complete the construction of the
proposed CAW system and to provice the CATV service; Information with respect
to financial projections of the proposed system, including methods of financing,
Shall be submitted as part of -the application. All financial and ownership
information relating to the applicant submitted in compliance with this ordinance
shall be confidential and shall not be regarded as public information to the
extent provided by law.
4. To the extent permitted by law, a statement containing a
description of the CATV system proposed to be constructed, installed, maintained
and operated by the applicant, the technical specifications of the materials
to be used, the services to be provided to subscribers, the services, material
and equipment to be provided without cost to local government units, qualified
under the FCC regulations, the facilities, material and equipment to be made
available for access cablecasting, the manner in which the applicant proposes
to construct, install, maintain and operate the system, and the extent and manner
in which existing or future poles or other facilities of other public utilities
will be used for such system. The statement required by this subsection shall
include all information above, relative to the full term of the franchise and
not merely the initial system.
5. A statement setting forth all agreements and understandings,
whether written or oral, or implied, existing between the applicant and any
person or entity with respect to the ownership, control or transfer of the
proposed franchise or the proposed CATV system and service. If a franchise is
granted to a person who is an agent or representative of another person, and
such relationship is not disclosed in the original application, such franchise
shall be void and of no force and effect.
6. A statement or schedule of proposed rates and charges to
subscribers for installation and service, and a list of those services to be
provided to subscribers. -
7. A map of the area which the applicant will agree to serve within
twelve months of the effective date of the franchise and a statement of
applicant's plans for future expansion of service. The map shall clearly
delineate areas which will not be served, if any.
8. The applicant shall provide to the Board any additional
information which the Board deems necessary. A request by the Board for such
additional information shall be made in writing after the opening of applications
and before the public hearing.
E. Reservation of Rights. The County expressly reserves the right or
privilege to grant by franchise to any other person the right to construct,
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operate, and maintain a CATV system within the same area during the same period
of time granted to any other franchisee.
F.' Findings. If the Board determines that no system proposed by any
applicant is- in the best interest of the public, no franchise will be granted.
The Franchise, if granted, shall contain recitations that demonstrate that the -
Board'has examined and approved the franchisee's legal, financial and technical
ghal;fications, as well as the adequacy and feasibility of franchisee's
construction arrangements.
Section 6. ACCEPTANCE OF FRANCHISE - EFFECTIVE DATE.
A. 'Time. Within sixty -(60) days after the Board has granted the franchise,
the franchisee shall file with the Clerk to the Board, a written acceptance of
the franchise, acknowledged before a Notary Public. This acceptance shall
acknowledge' that the franchisee agrees to be bound by and to comply with the
provisions of this Ordinance, and the assurances set forth in his application,
and shall be of such form and of such content, as shall be satisfactory to and
be approved by the County Attorney.
B. Other Requirements. Concurrently with the filing of the written
acceptance, the franchisee 'shall file with the Clerk to the Board the bond and
proofs of insurance as required by Sections- 11 0 and E or F of this Ordinance
and proof of loan comm-ittments or other proof of ability to obtain construction
funds.
0, Effective Date. The effective date of this franchise shall be the
date on which the franchisee -files the acceptance, bond, proofs of insurance,
and proof of acquisition of construction funds as required herein, provided,
however, if any of the material required to be filed with the acceptance or the
acceptance itself is defective or fails to meet with approval, the franchise
shall not be effective until such defect is. cured or, such approval is obtained.
Section 7. PROVISIONS GOVERNING THE TERM, RENEWAL, RENEGOTIATION, AND, TRANSFER
OF A FRANCHISE.,
A. Term. The franchise and - rights therein granted shall take effect
and be in force for a period of fifteen years from and after the grant and
acceptance date of the franchise,'unle.ss such time is extended by the Board of
Commissioners.
B. Termination of Franchise. Upon termination of the franchise for
whatever reason, including expiration or revocation, the County shall have the
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right to determine whether the franchisee shall be eligible to continue to
operate and maintain the CATV system.
C. Expiration of Franchise. Within three years of the, expiration the
term of the franchise and subject to approval by the Board of Commissioners,
the franchisee may negotiate renewal of its franchise for an additional period
not inconsistent with FCC rules and regulations.
The franchisee shall notify the County in writing no less than one (1)
year in advance of the expiration date of its desire to renew or not to renew
the franchise. The County may propose certain franchise modifications to the
franchisee and make any given renewal contingent upon acceptance of such
modifications. Renewal shall be preceded by a public hearing held at least
thirty (30) days in advance of decision by the Board of Commissioners. A
renewal may be granted not more than two (2) years prior to the expiration of
any existing term. The Board of Commissioners may determine whether or not
the franchisee has performed satisfactorily its obligations under the franchise
by reviewing the following:
1. Technical developments and performance of the system;
2. Programming;
3. Other services offered;
4. Cost of Service;
5. Compliance with any requirement in the ordinance or in FCC
regulations;
6. Annual and other reports made to the County or the FCC;
7. Extension of service; and
8. Other matters of concern.
In the event the current franchisee is determined by the Board of
Commissioners to have performed unsatisfactorily, new applicants shall be
sought and evaluated by the County Manager and Board of Commissioners and a
franchise award may be made according to application and award procedures set
forth herein.
Upon failure to renew the franchise following expiration of the term of
the franchise, the County shall have the right of first refusal to purchase the
CATV system. Should the County decide to purchase the system, it shall do so
at a price not to exceed its then fair market value. In determining the fair
value of the system, the original cost of all tangible and intangible property,
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as well as the salvage value, the-book value, the replacement cost, cash flow,.
and other factors, including outstanding debts of the system to'be assumed by,
the County, may be considered.:Under no circumstances shall any valuation be
made for "good will" or any right or privilege granted by this Ordinance.
Should .a -dispute arise over the determination of the fair value of the system,
the dispute shall be resolved by arbitration as provided in Section 7 U.
D.- Revocation of Franchise. The Board of Commissioners may terminate
the franchise conferred under this Ordinance at any time prior to a date of
expiration upon a finding that the franchisee has failed-to cure one or more
of the following defects:
i.. Material breach,. whether by act or omission, of any terms or
conditions of this franchise ordinance, or franchise agreement, or
2. Material misrepresentation of fact in the application for or
negotiation of the franchise, or
3. Insolvency of the franchisee, or inability or unwillingness -of
the franchisee to pay its just debts when they accrue, or application of the
franchisee for adjudication as a bankrupt, or
4. Failure to provide subscribers or users with adequate service
in the best interest of the public convenience and welfare, or
5. Failure to have obtained authorization from all required
dovernmental agencies and acceptable pole attachment agreements within twelve
(12) months after acceptance of the franchise provided the period of twelve (12)
months may be extended by the Board of Commissioners if the franchisee is
diligently pursuing such authorization and the delay`is not caused by any fault
of the franchisee or results from strikes, natural disaster, or other
occurrences over which the franchisee would have no control.
6. Failure to have fall service available as set forth in franchisee's
application and in section BE hereof, provided the:pericd may be extended by the
Board of Commissioners under the same circumstances set forth in subsection
above.
The franchisee shall have sixty (60) days to remedy defects following
written notice by the 'County Manager to the franchisee of such a defect. If
any defect continues beyond the sixty '(60) days ( or any extension thereof
granted by the Board of Commissioners) without written proof that corrective
action has been taken" or is being actively and expeditiously pursued, the Board
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of Commissioners shall call a public hearing on the termination of the franchise.
Immediately following the public hearing, the Board of Commissioners may, by
resolution, declare that the franchise be terminated. At least ten (10) days
prior to the Board of Commissioners& meeting at which the public hearing will
be held, the County Manager shall cause to be served upon the franchisee a
written notice of the public hearing on the question of termination. The notice
shall state the time and place of the meeting. In the event that the County
revokes the franchise, the County shall have the right of first refusal to
purchase the CATV system at a price not to exceed its fair market value.
The fair market value shall be determined by the County as set forth in section
7 C hereof and in accordance with generally accepted appraisal and accounting
principles. Under no circumstances shall any valuation be made for "good will"
or any right or privilege granted by this permit. Should a dispute arise over
the determination of the fair market value of the system, the dispute-shall
be resolved by a panel of three appraisers: one to be selected by the County,
one to be selected by the franchisee, and the third to be selected by the other
two appraisers. Should the County and the franchisee fail to agree on the
third appraiser, the choise shall be made by the senior resident Judge of the
Superior Court of the judicial district in which the County is located.
Should the County revoke the franchise and fail to purchase the system,
new applicants shall be sought and evaluated by the County Manager and Board
of Commissioners and a franchise award may be made according to application and
award procedures set forth herein.
E. Foreclosure. Upon the foreclosure or other judicial sale of all or
a substantial part of the system, or upon the termination of any lease covering
all or a substantial part of the system, the franchisee shall notify the Board
of Commissioners of such fact, and such notification shall be treated as a
notification that a transfer in control of the franchise has taken place, and
the provisions of Section 7G of this Ordinance governing the consent of the
Board of Commissioners to such change in control of the franchise shall apply.
F. Receivership. The Board of Commissioners shall have the right to
cancel this franchise one hunched and twenty (120) days after the appointment
of a receiver, or trustee, to take over and conduct the business-of the company,
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58
whether in receivership, reorganization, bankruptcy, or other action or
proceeding, unless such - receivership or trusteeship shall have vacated prior
to the expiration of said one hundred and twenty (120) days, or unless:
1 Within one hundred and twenty (12Q) days-after his election or
appointment, such receiver or trustee shall have fully complied with all -the-
provisions of this Ordinance and remedied all defaults thereunder; and
2. Such .receiver or trustee, within said,one hundred and twenty
(120) days, shall have executed an agreement, duly approved by the court having
jurisdiction in the premises, whereby such receiver or trustee assumes and_agrees
to be bound by each and every provision of this Ordinance and the certification
granted to the company.
G. !'Transfer of Control. No transfer of effective ownership or control
of the CATV system may take place, whether by forced or voluntary sale, lease,
mortgages assignment,encumbrance or any other form of disposition- without
prior notice to and approval by the Board of Commissioners. The notice shall
include full identifying particulars of the proposed transaction, and the Board
of Commissioners shall act by resolution.
The - franchisee shall not issue any additional capital stock and shall
not permit the transfer of more than ten (10) percent of its presently outstanding
shares without the prior written consent of the Board of Commissioners; No sale,
lease, assignment.or transfer shall be effective until the vendee, leasee,
assignee, or transferee .has filed with the County its acceptance of this grant.
In the absence of extraordinary circumstances, the Board of Commissioners
will not approve any such transactions before completion of construction of
energised cable passing before each dwelling unit, as specified in Sections 8 04D,
Prior approval of the Board of Commissioners shall be required where
ownership or control of more than ten (10) percent of the right of control of
or interest in the franchise is acquired by a person or a group of persons
-acting in concert, none ,of whom already own or control ten (10) percent or more
of such right of control or interest, singularly or collectively. Provided,
however, that such Board of Commiss- ioners approval shall not be unreasonably
withheld after proper application is made therefore.
"Transfer of effective ownership of control" ! shall not include:
1. Pledge or hypothecation or mortgage or similar instrument
transfering conditional ownership or all or part of the system +s assets to a
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lender, or creditor in the ordinary course of business so long as the lender
does not thereby acquire the right to control the systems operations; but
no such transfer of conditional title can be made absolute or became effective
without prior approval of the Board of Commissioners, or
2. The disposition of facilities or equipment no longer required
in the conduct of business.
Franchisee may hypothecate its interest under this Ordinance and the
franchise agreement and in the CATV system to be constructed pursuant thereto
for the purpose of securing a loan, the entire proceeds of which will be
utilized in construction and operation of its CATV system in the franchise area.
By its acceptance of the franchise, the franchisee specifically concedes
and agrees that any acquisitions or transfers as set forth in this section
without prior approval of the Board of Commissioners as may be required, shall
constitute a violation of the franchise agreement and this Ordinance by the
franchisee.
H. Continuin of Service Mandator. The franchisee shall be required
to provide continuous service to all subscribers in return for payment of the
established fee. If the franchise agreement becomes void for whatever reason
including normal expiration, revocation or foreclosure, the franchisee is
required, at the option of the County as a part of this franchise to continue
to operate the system for either a period of six months or until an orderly
change of operation is effected whichever is the earlier. In the event the
franchisee fails to operate the system or allows a lapse in service without
prior approval of the Board of Commissioners, the County or its agent may
operate the system until such time that a new operator is selected. If the
County is required to fulfill this obligation for the franchisee, the
franchisee shall reimburse the County for any costs or damages that are the
result of the franchisee's failure to perform.
I.
Sale of System Mandatory. In the event the County elects to revoke
the franchise or fails to renew the franchise, and providing the County elects
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not to purchase the system, the Cpunty may require that the system be, sold to
a franchisee designated`by the Board of County Commissioners at a purchase
price that shall be equivalent to the fair market value determined in the same
manner described in Section 7C,
J. Periodic Review, `Because of the regulatory, technical, financial,
marketing, and legal uncertainties associated with cable communications, the
franchisee .shall. to the following review provisions in order to provide
for, a maximum degree of flexibility in this franchise and to help achieve a
continued advance and modern system for the County:
1. The County and the franchisee shall had scheduled review
sessions within thirty (30) days of the fifth and tenth anniversary dates of
the effective, date of the fran nse.
2. Special review sessions may be held in the County Courthouse at
any
time during the term of the franchise upon reasonable notice by either
party to the other. A special review session shall be held in the event any
clause or section of this ordinance is voided, nullified deleted or modified
by the authority of any regulatory agency including the FCC, and the franchisee
will comply with the FCC rules within one (1) year from adoption of the new
rule,
Thei following topics shall be discussed at every scheduled review session;
service, rate structures, free or discounted services, application of new
technologies, state of the art, system performances, services provided,
- programming offered, customer complaints, privacy in human rights, amendments
to this Ordinance, undergrounding provisions, judicial and FCC rulings, and
extension of service. In addition, other topics maybe discussed as determined
by the County.
At .either a scheduled or special review session a public hearing may be
called if and as determined by the Board of Commissioners.
Section 8. FRANCHISE AREA AND EXTENSION OF SERVICE.
A. Franchise Territory.. The franchise is :for all of Harnett County
outside, of the corporate limits of the towns.'
B, Service. Within the first year after the effective date of the
franchise the franchisee` agrees to make available basic CATV service to all
residents of the County within the basic service area, as set forth in
franchiseets application. Thereafter; franchisee shall provide service in
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all areas of the County where theeaverage density of residential units is
equal to or greater than 30 residential units per cable mile, provided that
the percentage of the franchise area to be served where there are 30
residential units per cable mile shall not be less than:
1. 50% at the end of 2 years.
2. 70% at the end of 3 years.
3. 80% at the end of 4 years.
4. 100% at the end of 5 years.
Franchisee shall extend cable television service to those areas with
an average density of at least 30 occupied residential units per mile of cable.
In addition Franchisee shall extend cable television service to areas of lessor
density, upon the written request of any five (5) or more customers living
within a mile from each other as follows: Franchisee shall determine its
then current costs of areally constructing its cable system and extending
cable television service to such customers. Franchisee shall also determine
what would be its costs of such construction and extension assuming 30 occupied
dwellings per mile of cable and assuming that potential subscribers become
Franchisee's customers at a rate equal to its system —wide penetration rate
within the County. Franchisee shall extend the costs of and pay this later
amount as Franchisee's ratable charge.,of constructing its system and extending
services to the customers requesting the same. The excess over Franchisee's
ratable charge (the "subscribers current extension costs ") shall be assumed
and paid by the requesting customers prorate. For two (2) years subsequent to
completion of extension (or until there are 30 occupied dwellings per mile of
cable along such extension), said prorata shares shall be recalculated as
additional customers along said extension subscribe to Franchisee's system.
Said additional customers shall pay their prorata share of the subscriber
service extension costs, and customers originally having made such payments
shall receive a refund equal to the excess of their original prorate subscriber
extension costs payment over and recalculated prorata share together with any
prior refund. At the end of said two (2) years period, payments for subscribers
service extension costs remaining in Franchisee's possession should be credited
to its capital plant account.
Section 9. REGULATION OF RATES.
A. Franchise Fee. (see "Payment to the County ", Section 10.)
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9
B. T,,m,tations on Rates. The charges made to subscribers for services
of the franchisee hereunder shall be fair and reasonable. The franchisee shall
receive no consideration; whatsoever from its subscribers other than in accordance
with this', section, without approval of the Board of Commissioners. The
franchisee shall not charge rates for basic services and for installations and
disconnections in ekcess of the rate schedule. appearing in the franchisee's
application unless. approved in accordance with Section 9 C hereof.
C. Ad:iustment to Rates. Initial rates and charges for basic services
and for installation and disconnect shall be fixed in the franchise application.
Thereafter, the County or franchisee may. request. rate adjustments at any time.
After a -public hearing affording due notice to the franchisee and other interested
persons,' the Board of Commissioners may adjust rates. In no event shall such
rates be changed without Board approval, except that nothing in this provision
shall prohibit the reduction or waiving of charges in conjunction with
promotional campaigns for the purpose of attracting subscribers.
D. Refunds to Subscribers and Users. If any subscriber terminates an y
monthly service during the first six (6) months of said service because of
failure of a franchisee to render the service offered, the franchisee shall
refund to such subscriber an amount equal to all charges paid by the subscriber
during the period in which no service was received.
If any subscriber terminates. for any reason any monthly service prior
to the end of a prepaid peried,_a pro rata•portion of,any prepaid subscriber
service fee shall be refunded to the subscriber by the franchisee using number
of months as the basis.
E.' Advance Charges and Deposits.' A franchisee may require subscribers
to pay the installation charge in advance and to pay for'each month of basic service
in advance at the beginning of each month. No other advance payment. or deposit of
any kind shall be required by a' franchisee for basic subscriber service. Other
than for a converter, nothing' in this provision shall be' construed to prohibit
charges for' or waiver for charges for initial installation or. reconnection.
F. Installation and Reconnection. Except as otherwise provided elsewhere
in this ordinance, a franchisee may make a charge to subscribers for the
installation of service outlets and for the reconnection -of service outlets._,
The rates for such connection or reconnection shall: be as authorized in the
rate schedule (Section 9 B).
G. Other Governmental Regulation of Rates. -If in the future, the
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5
State of North Carolina or the United States Government or any regulatory
agency thereof regulates the rates of the franchisee for the service provided
for in the franchise, this section shall be of no effect during such regulation
to the extent of any conflict therewith.
H. Public Service Installation.
for installation, maintenance or service
The franchisee shall without charge
make single installations of its
standard CATV service facilities to those public buildings operated by Harnett
County and the Harnett County Board of Education when the building is located
on the franchisee's system when the system is constructed consistent with the
requirements of this Ordinance. Such installations shall be made at such
reasonable locations as shall be requested by the County Manager. Any charge
for relocation of such installation shall, however, be charged at actual cost.
Additional installations at the same location may be made at actual coat..
No monthly service charges shall be made for distribution of the franchisee's
basic service, including access channels, within such publicly owned buildings.
I. Charges for Public Access. Charges to users of the franchisee's
production facilities for public access programming shall not exceed actual
costs incurred. Such charges shall be publicly posted and made available at
no cost to anyone upon request.
Charges shall be clearly.. and completely
stated in the operating rules for public access programming. Such charges may
be amended only upon approval by the Board of Commissioners. Franchisee shall
furnish standard playback facilities and labor at actual cost incurred for the
public access channel.
Section 10. PAYMENT TO THE COUNTY.
As compensation for the authorization granted herein and in consideration
for permission to use the easements which the County controls for the
construction, operation, and maintenance of a CATV system within the County,
the franchisee shall pay to the County quarterly on or before the first day
of July, October, January, and April for the preceding quarter an amount equal
to three (3) percent of the gross revenues. This payment shall be in addition
to any other fees or payments made to the County by the
pole rental, business licenses and other fees not based
Should the FCC regulations be amended in the future to allow the County to
receive a fee from its franchisee from other than the previously mentioned
revenues, then the franchisee shall immediately commence making such additional
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franchisee, such as
on gross revenues.
5 4
payments to the County as are authorized to the full extent of such authorization.
Payment shall be accompanied by a :certified report showing the basis for the
computation and such other relevant facts as may, be required by the County. No
acceptance of any payment shall be construed as an accord that the amount paid
is, in fact, the correct amount, nor shall such acceptance of payment be
construed as a release of any claim the County may have for further or additional
sums payable under the provisions of this Ordinance. All amounts paid shall be
subject to reccmputation by the County within sixty -(60) days of the "receipt of
the franchise annual report. This time limitation shall not apply should the
franchisee provide.false or erroneous information. In the event that
recomputation results in additional revenue to be paid to_the County, such
amount shall be subject to an interest charge at the highest rate permitted by
law. Nothing in this provision shall limit franchisee's liability to pay other
local taxes and charges.
Section 11. INSURANCE,-PENALTIES, AND ENFORCEMENT.
A. Remedies for Breach and Contravention of Franchise. A breach by the
franchisee of the franchise agreement, in addition to constituting a breach of
contract, shall constitute a violation of this .Ordinance. The cost of any
litigation incurred by the County to enforce this Ordinance or the franchise
granted pursuant hereto, or the franchise agreement or in relation thereto, or
in, relation to the cancellation or termination of a franchise, shall be reimbursed
to the County by the franchisee. Such costs shall include filing fees, costs of
depositions, discovery, and expert witnesses, all other expenses of suit, and
a
reasonable attorneys fee.
Violation of material provisions of this Ordinance shall subject
the franchisee to the following penalties:
1. Failure of the franchisee to meet performance standards, as
determined by the County Manager, to which it has agreed, may result in a rebate
of° rates or charges to'subscribers affected, provided that the County Manager
shall provide ten (10) days written notice of the failure to the franchisee.
Any rebate may be charged to the performance bond.
2. For failure to provide data and reports as requested by the
County Manager or the Board of Commissioners and as required by this Ordinance,
the penalty shall be fifty (50) dollars per day for each day not delivered.
This penalty may be chargeable to the performance bond.
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3. For failure to complete construction and installation of the
cable system, unless the Board of Commissioners approves the delay, because of
reasons beyond the control of the, franchisee, the franchise term may be reduced
one (1) year for each three (3) months' delay. The County Manager shall notify
the franchisee during the first month of the three (3) month period that the
system has failed to meet performance standards.
4. For any other material violation of the ordinance in such amounts
per day as the Board may reasonably determine.
5. The franchisee may appeal any penalty which it considers
unreasonable to the Board of Commissioners and then into the state judicial
system as permitted by state law.
B. Liability and Indemnification of the County. The franchisee shall
indemnify and hold harmless Harnett County at all times during the term of the
franchise granted hereby and specifically agrees that it will pay all damages
and penalties which the County may legally be required to pay as a result of
granting the franchise. Such damages and penalties shall include, but not be
limited to, damages arising out of copyright infringements, and other damages
arising out of the installation, operation or maintenance of the CATV system
authorized herein, whether or not any act or omission complained of is authorized,
allowed or prohibited by the franchisee. In case suit shall be filed against
the County either independently or jointly with the franchisee to recover for
any claim or damages, the franchisee, upon notice of it by the County, shall
defend the County against the action and, in the event of a final judgment being
obtained against the County, either independently or jointly with the franchisee
solely by reason of the acts of the franchisee, the franchisee will pay said
judgment and all costs and hold the County harmless therefrom.
C. Insurance. The franchisee shall be required to maintain insurance
in such forms and in such companies as shall be approved by the County with
the County named as the coinsured, such approval not to be unreasonably withheld,
to protect the County and franchisee from and against any and all claims, injury
or damage to persons or property, both real and personal, caused by the
construction, erection, operation or maintenance of any aspect of the system.
The amount of such insurance shall not be less than the following:
General Liability Insurance:
bodily injury per person $ 500,000.00
bodily injury per occurrence $1,000,000.00
property damage per occurrence $ 500,000.00
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596
Automobile Insurance:
bodily injury per person
bodily injury per occurrence
property damage per occurrence
$ 100,000.00
$ 300,000.00,
$ 300,000.00
The County may require the foregoing insurance coverage to be changed from
time to time during the term of the franchise.
Worlmients Canpensation Insurance.shall also be provided .as required by -
the laws of the State of North Carolina, as amended.
All -said insurance coverage shall provide a thirty (30) day notice to
the County-Manager in the event:of material alteration or cancellation of any
coverage afforded in said policies prior to the date said material alteration
or cancellation shall become effective.
A certificate of coverage for all policies required hereunder shall be
furnished to and filed with the County Manager, prior to the commencement of
Operations ' or expiration of prior policies, as the case may be.
D. Non Waiver. Neither the provisions of this section, nor any bonds
accepted by the County pursuant hereto, nor any damage recovered by the County
hereunder,`shall be construed to excuse unfaithful performance by the franchisee
or limit the liability of the franchisee under this Ordinance or the franchise
for damages, either to the full amount of the bond, or otherwise.
E. !Faithful Performance Bond. The franchisee shall, concurrently with
its acceptance of this franchise, file with the County Manager and at all times
thereafter maintain in full force and effect for the term of this franchise or
any renewal thereof, at franchisee's sole expense, a corporate surety bond in
a.responsible company licensed'to do business in North Carolina and approved
by the County, in the amount of five (5) percent of the anticipated cost of
Construction of the proposed CATP system for the unincorporated areas of the
County, renewable annually, and conditioned upon the faithful performance of
the franchisee, and in accordance with the provisions of this Ordinance and
upon the further condition that in the event franchisee shall fail to comply
with any one or more of the provisions of the franchise, there shall be
recoverable jointly and severa11y from.the principal and surety of such bond
any damages or loss suffered by the County as a- result thereof, including the
full amount of any 'compensation, indemnification, or cost of removal or
abandonment or any property of the franchisee as prescribed hereby, plus a
reasonable allowance for attorneyst fees and costs, up to the full amount of
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the bond, said condition to be a continuing obligation for the duration of the
franchise and any renewal thereof and thereafter until the franchisee has
liquidated all of its obligations with the County that may have arisen from the
acceptance of this franchise or renewal by the franchisee or from its exercise
of any privileges or rights herein granted. The bond shall provide that at
least thirty (30) days prior written notice of intention not to renew,
cancellation, or material change be given to the County by filing same with
the County Manager. Said required performance bond shall be reduced to $10,000
once the franchisee has connected sufficient energized cable to serve the areas
required to be served by Section 8 B hereof. Failure to keep a performance
bond in force at all times as herein provided shall constitute an event of
default.
F. Deposit in Lieu of Bond. In lieu of the performance bond by a
sureby company as herein provided the franchisee may file and deposit with the
County a performance bond without a corporate surety but secured by a Certificate
of Deposit in some bank or savings and loan association in the State of
North Carolina, in the sum of the performance bond required by Section 11 E
hereof conditioned in the same manner as the performance bond of a surety
company hereinbefore described. The income from such deposit shall be payable
to the franchisee. As an alternative the franchisee may provide such other
security as may be approved by the Board of Commissioners, but absent such
approval it shall provide a bond or deposit in lieu thereof as above provided.
Section 12. SYSTEM DESIGN PROVISIONS.
A. Emergency Override. The cable system shall include an "Emergency
Alert" capability which will permit the Chairman of the Board of Commissioners
or his designee to override, by remote control, the video and /or audio of all
channels simultaneously programming in the case of public emergencies. The
franchisee shall designate a channel which will be used for emergency
broadcasts.
B. Standby Power. The franchisee shall maintain equipment capable of
providing standby powering for headend. The equipment shall be constructed so
as to notify automatically the cable office when it is in operation and to
revert automatically to the standby mode when the AC power returns.
C. System Standards. The franchisee shall install and maintain a cable
system which shall be in accordance with the highest and best accepted standards
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598
of the industry to,the end that subscribers shall receive the best possible
service. In addition, the franchisee shall comply with all requirements of
all duly constituted regulatory agencies having jurisdiction over cable
television or the operator of the cable system.
D. State of the Art. The franchisee shall upgrade its facilities,
equipment and service so that its system is as advanced as the current state
of production technology will allow. The franchisee shall install additional
channel capacity as required to keep channel capacity in excess. of demand
therefor by users., At all times, the cable system shall be no less advanced
than any other system of comparable size and age excepting only systems which
are experimental, pilot or demonstration. The Board of Commissioners shall
order the franchisee to comply with this section in case of specific violations,
which it may investigate upon complaint or on its own motion. -
E. System Carriage. At all times the signal carriage and channel
utilization shall.coniorm to the regulations of The FCC, State and other
regulatory agencies which are not in conflict therewith. The operator shall
provide at least one access channel for each of the following activities:
1. public access;
2. educational access;
3 government access;
as each of these channels is defined under FCC regulations. Such. channels
shall not be required to remain idle if not in use by the public but rather
can be used by the franchisee to produce revenue. Except incases of
emergency, governmental units must give ten (10) days notice of intent to use.,
Section 13. CONSTRUCTION PROVISIONS — USE OF STREETS AND POLE ATTACHMENTS,
A. Construction Schedule. The franchisee shall be diligent 'in
commencing :construction after -the effective date of the franchise.
B. Changes Required by Public Improvement. A franchisee shall, at its
expense, protect, support, temporarily disconnect, relocate in the same street
or other public place to remove from the. road or other public place, any
property of the franchisee when required by the County or State of North
Carolina by reason of traffic conditions, public safety, road vacation, road
construction, change or establishment of road grade, installation of sewers,
drains and water pipes, power lines, or any other type of structure or
improvement by public agencies.
C. Pole Use. 'The franchisee is obligated to obtain pole space and
other facilities from the towns of Iillington, Angier, Erwin and Coats, private
utilities, and other lawful users at its own expense and costs.
D. Use of Existing Poles or Conduits. Nothing in this Ordinance, or
any franchise granted hereunder, shall authorize the franchisee to erect and
maintain in the County new poles where existing poles are servicing the area.
The franchisee shall obtain permission from the County before erecting any
new poles or underground conduit where none exists at the time the franchisee
seeks to install his network.
E. Facilities Not to be Hazardous or'cInterfere. All wires, conduits,
cable and other property and facilities of the franchisee shall be so located.,
constructed, installed and maintained as not to endanger or unnecessarily
interfere with the usual and customary trade, traffic and travel upon the
roads and public places of the County. The franchisee shall keep and maintain
all of its property in good condition, order and repair. The franchisee shall
keep accurate maps and records of all its facilities and furnish copies of such
maps and records as requested by the County in the section dealing with reports.
A franchisee shall not place poles or other equipment where they will interfere
with the rights or reasonable convenience of adjoining property owners, or
with any gas, electric or telephone fixtures, or with any water hydrants or
mains.
F. Methods of Installation. All wires, cables, amplifiers and other
property shall be constructed and installed in an orderly and workmanlike manner
consistent with all applicable requirements of the National Electric Code,
state and local electric codes, and all pole attachment agreements. All cables
and wires shall be installed parallel with existing telephone and electric
wires whenever possible. Multiple cable configurations shall be arranged in
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parallel and bundled, with due.respect for engineering and safety considerations.
All installations shall be underground in those areas of the County where
electric service is underground at the time of installation. In areas where
electric'' utility facilities are aboveground at the time .of installation, the
franchisee may install its service aboveground with the understanding that at
such time as those facilities are required to be placed underground by the
County, the franchisee shall likewise place its services underground without
additional cost to the subscribers or the County. It shall be the policy of
the County that underground installation, even when not required, is preferable
to the placement of additional poles.
G Subscriber's Underground Installation Option. Should any subscriber
wish to have underground service in any area normally provided service via
overhead,(aerial) construction, the subscriber requesting such underground
service shall pay all costs attendant to underground. construction plus ten (10)
percent less the normal costs of such equivalent overhead installation, if such
overhead' service does not exist to the subscribers' residence.
H. Prohibition of Signal Distribution by Others. No equipment, cable
or.other apparatus shall be connected between the franchisee's CATV system and
the subscriber7s' receiver except as furnished and installed by the franchisee.
I. Requests for Removal or Change. The franchisee shall; on the request
of any person holding a building moving permit, temporarily raise or lower its
wires to permit the moving of swirl building. The expense of such temporary
removal, raising or lowering of wires shall be paid by the person requesting
the same, and the franchisee shall have the authority to require such payment
in advance. The franchisee shall be given -not less than five (5) days advance
notice of any move contemplated to arrange for temporary wire changes.
J. Construction Standards; Clearance Aboveground. The franchisee's
distribution system in the public roads shall comply with all applicable laws,
regulations and ordinances, and all:its wires and cables suspended from poles
in the roads shall comply with the minimum clearances aboveground required for
telephone lines, cables, wires and conduits.
K. Maintenance and Alteration of the System After Construction. The
Board of` Commissioners may require any part or all of the.system to be improved
or upgraded (includingt without limitation, the increasing of channel capacity,
the furnishing of improved converters, and the institution of two -way
_23r
transmissions), if a reasonable need is found thereforeafter a public hearing
has been called for that purpose, and may order such improvement or upgrading
of the system, to be effected by the franchisee within a reasonable time
thereafter, 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.
Section 14. OPERATIONS AND MAINTENANCE PROVISION.
A. Consumer Complaint Response. The franchisee shall maintain an office
in the County that is open during all business hours, has a publicly listed
telephone number, and is so operated that complaints and requests for repairs
or adjustments may be received on a twenty -four (24) hour basis. The franchisee
shall have a resident manager and engineer in the County and shall have office,
marketing, technical and studio staffs professionally trained in the cable
communications industry.
B. Interruption of Service to Subscribers. When ever it is necessary
to interrupt service to subscribers for the purpose of maintenance, alteration,
or repair, the franchisee shall make every effort to do so at a time that will
cause the least amount of subscriber inconvenience and, unless the interruption
is unforseen and immediately necessary, the franchisee shall give reasonable
advance notice thereof to the affected subscribers.
C. Service Force Required. The franchisee shall provide a service
force seven (7) days a week for all complaints and requests for adjustments.
Such force shall be capable of responding to subscriber complaints within
twenty -four (24) hours of receipt of the complaint. Total loss of service
attributable to the cable system shall be cleared within twenty -four (24)
hours, except to the extent that restoration of service is prevented by
strikes, fires, injunction or other cause beyond the franchisee's control.
D. Complaint Log. The franchisee shall keep an accurate log listing
chronologically all complaints and trouble calls received from its subscribers.
This log shall include appropriate identification of the subscriber and service
affected, the time, date and nature of the report, the action taken to clear
the trouble or satisfy the complaint, and the date and time of final disposition.
This log shall be kept on file for five (5) years and shall be available for
inspection by the County Manager upon request at any time within this period.
Franchisee shall submit to the County each month a summary of the number and
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types of complaints received.
E. Complaints Regarding Service Deficiencies. For recurrent complaints
regarding service deficiencies other than total or partial loss of service,
such as "ghosting ", weak -audio signal, distortion, and the like, the County
Manager may require the franchisee to investigate and report to him the causes
and cures thereof, and the County Manager may also conduct his own investigation.
Thereafter, the" County Manager may order specified remedial action to be taken
within reasonably feasible time limits.' If such action is not taken, or is
ineffective, or if within thirty (30) days the franchisee files with the Board
'of Commissioners a notice 'of objection to the order, The Board of Commissioners
may conduct :a hearing and may, if the evidence warrants a finding of fault on
the part of the franchisee, take appropriate action pursuant to the terms of
this Ordinance.
F. 'Complaint Review Procedures. A franchisee shall ensure that all
subscribers,, programmers and members of the general public have recourse to
a satisfactory hearing of any complaint. The County shall work closely with
a franchisee and members of the public to establish procedures for handling and
settling complaints. HA franchisee shall present to the Board of Commissioners
for its approval, no later than six (6) months after the acceptance of the
franchise, a set of rules, regulations and procedures reasonably designed for
the prompt handling and settling of. complaints.
G. Sale and Service of Receivers Prohibited. The franchisee shall not
engage in the sale, service, repair, rental or leasing of television receivers,
radio receivers,. parts of accessories, and shall not require or attempt to
influence its subscribers to deal with any particular' person in regard thereto.
Further, the franchisee shall not require the removal nor offer to remove any
existing antenna as a condition of providing cable service.
H. Use of Production Equipment. A user of cablecast facilities may not
be required to use the franchiseets production equipment but must be allowed
to use any other production equipment that is compatible with the franchiseets
facilities. The franchisee is encouraged to use standard- quality equipment.
2 -. Open Books and Records. The franchisee shall keep complete and
accurate books of accounts and records of its business under and in connection
with its franchise. All such books and records shall be maintained at the
franchisee's business office within the County. The County shell have access
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t03
to all such books and records at any time during reasonable business hours,
and may examine officers and employees informally or under oath in respect
thereto. Access shall also be given to the County, on request, to all
ineering records and reports.
supplementary or underlying financial and en g
J.
Current Reports. The following reports must be filed with the
County Manager when the specified event occurs:
1. Any instrument of change in or transfer of an interest in the
franchisee or its assets or franchise.
2. Any change in or addition to the directors or officers of the
franchisee.
3. Any contract or transaction with an affiliated company,
respecting the cable system, together with full particulars and a copy of
any written agreement or a written summary of any verbal agreement.
4. Any changes in the franchisee's rules and regulations governing
the conduct of its business• diligently apply
K. Permits and
Authorizations. The franchisee shall
for all necessary permits, agreements, authorizations and contracts required
in the conduct of its business and shall diligently pursue the acquisition
thereof, including necessary pole attachment contracts and necessary
stration to construct such
authorizations from the Federal Aviation Admit necessary authorization or
receiving antenna towers as may be required and any
waivers from the FCC, and when any such permit is obtained, a copy thereof
shall be promptly filed by the franchisee with the County Manager.
Film s and
Communications with Re ul.ato A envies. Copies of
L.
all communications, including Petitions, applications,
as well as official correspondence Commission,
Communications Commission, Securities and Exchange Commi ,
or state regulatory commission or agency
any matters affecting CATV operations
shall also be submitted simultaneously to the
shall file
pleadings and reports,
sent to or received from the Federal
or any other
Federal
respect to
franchise,
M. na.•ter1y Reports. The franchisee
Manager on a quarterly basis:
having jurisdiction
authorized pursuant
County Manager.
with the County
—26—
in
to this
4
Construction progress reports until the system is complete;
Quarterly Financial Report as required in'Section 10; and
3. Complete unaudited financial statements, including. operating
'statements, source and application of funds and balance sheets for the
quarterly accounting period then ended, within thirty (30) days of the end
of each such period.
N. Annual Reports. The following reports shall be filed by the
franchisee with the County Manager annually, no later than February 1, except
where otherwise provided:
1. A -summary of complaints received during the preceding calendar
year showing nature of the complaint, area of the County, disposition and
complaints subsequent to disposition;
2. A total facilities report together with a current system map
showing the location and total miles of plant and equipment installed and /or
operating at the close of the preceding calendar year;
3` A map of system;
4. One copy of each type of agreement currently offered to subscribers
and to users;
5. A complete set of current rules and regulations of the operator
incorporating the latest amendments filed with the County;
In addition the franchisee shall file a complete financial audit
statement including a statement of income to be certified by a public accountant
to be submitted no later than ninety (90) days after the end of the preceding
fiscal year of the franchisee and such reports on other topics as the -Board
of Commissioners may direct.
b. A complete financial audit statement including a statement of
income to be certified by a public accountant to be submitted no later than
ninety .(90) days- after the end of the preceding fiscal year of the franchisee.
7. Reports on other topics as the Board of Commissioners may direct.
0. General Reports. A franchisee shall prepare and furnish to the;
County, at •the times and in the form prescribed by the County Manager or Board
of Commissioners, such reports with respect to its operation, affairs,
transactions or property as may be reasonably necessary or appropriate to the
performance of. any pf the functions of the County in connection with this
Ordinance.
Section 15. RIGHTS RESERVED TO THE COUNTY.
A. Rights to Purchase the System. The County shall have the right to
purchase the system as, specified elsewhere in this Ordinance.
B. Right to Inspect Records. The County shall have the right to inspect
all boo}cs and records and examine officers and employees as specified in
Section 14.1. of this Ordinance. '
C. Right to Inspect Construction. The County reserves the right, but
shall not have the duty to inspect plans and construction of any facility to
be used in connection with the cable system irrespective of its location.
D. Right of Intervention. The franchisee shall not oppose intervention
by the County in any suit or proceeding to which the franchisee is a party.
E. Right to Require Removal of Property. The County reserves the
right not inconsistent with any other provision of this ordinance to require
publicly owned property at
the franchisee to remove
any of its property from
franchisee's own expense.
Section 16. RIGHTS RESERVED TO THE FRANCHISEE.
Franchisee's Right to Appeal. Franchisee shall have the right to
any provision, --kouirement or ruling of the County Manager to the Board of
the courts as permitted by state law.
)F INDIVIDUALS PROTECTED.
A. Sal( ibscriber Lists Prohibited. Franchisee shall be prohibited
ig the use of subscriber lists for any purpose unconnected
service over the system.
No monitoring of any terminal connected to the system
appeal
Commissioners
Section 17. R:
from using or
with the provi:
B. Mon
shall take pla
terminal in qu
provide for sy
acquisition of
return path tr
C Cat
without author
Provided, how€
addressed "swe
of verifying
for pay servi:
D. Di(
shall not, in
facilities
.lout specific written authorization by the user of the
on each occasion. Provided, however, the franchisee may
de, nonindividually addressed "sweeps ", or the franchisee's
•:nation for purposes of verifying system integrity, controlling
sions, billing for pay services.
tna. It shall be unlawful to tape or monitor a system line
di from the parties whose communication might be overheard.
he franchisee may provide for systemwide, non - individually
or the franchisee's acquisition of information for purposes
integrity, controlling return path transmissions, or billing
;atory or Preferential Practices Prohibited. The franchisee
rates or charges, or in malting available the services or
of its system, or in its rules or regulations, or in any other
respect, make
subscriber to
or grant preferences or advantages to any subscriber or potential
the system, or to any user or potential user of the system, and
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shall not subject any such persons to any prejudice or disadvantage. This
provision shall not be deemed to prohibit promotional campaigns to stimulate
subscriptions to the system or other legitimate uses thereof; nor shall it be
deemed to prohibit the establishment -of a graduated scale of charges, and
classified rate schedules to which any customer coming within such classification
shall be entitled.
E. On Access. The entire system of the franchisee shall be operated
in a manner consistent with the principle of fairness and equal accessibility
of its facilities, equipment, channels, studios, and other services to all
citizens, businesses, public agencies, or other entities having a legitimate
use for the 'system and no one shall be arbitrarily excluded from its use.
Allocation of use of said facilities shall'be made according to the rules or
-- decisions of regulatory agencies affecting the same, and where such rules or
decisions are not effective to resolve a'. dispute between conflicting users or
potential users, the matter shall be submitted for resolution to the County
Manager, subject to appeal to the Board of Commissioners.
F. 'Eoual Opportunity Employment and Affirmative Action. In the carrying'
out of the construction, maintenance and operation of the CATV system, the
franchisee shall not discriminate against any employee or applicant for
employment because of race, creed, color, marital status, age, sex. or national
origin.
The franchisee shall post in conspicuous places, available to employees
and° applicants for employment, notices setting forth the provisions of this
non- discrimination clause.
The franchisee shall in all solicitations or advertisements for employees
placed by or on behalf of the franchisee, state that all qualified applicants
will receive consideration for employment without regard to race, creed, color,
sex, marital status, age or national origin.
G. Individual Right of Appeal. Any affected individual, partnership or
corporation shall have the right to appeal any provision, requirement or
ruling of;the County Manager to the Board of Commissioners.
Section 18. MISCEI1ANEOUS PROVISIONS.
A. .Compliance with Laws. Franchisee agrees to comply fully with all
local ordinances, state and federal laws, and with all rules issued by all
regulatory agencies now or hereafter in existence.
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607
B. Severability. If any 'section, sentence, clause or phase of the
Ordinance is held invalid or unconstitutional, such invalidity or
unconstitutionality' shall not affect, the validity of the remainder of this
Ordinance, and any portions in conflict are hereby repealed. Provided,
however, that in the event that the FCC declares any section invalid, then
such section or sections will be renegotiated by the County and the Franchisee.
C. Captions. The captions to sections are inserted solely for
information and shall not affect the meaning or interpretation of the Ordinance.
D. No Recourse Against the County. The franchisee shall have no
recourse whatsoever against the County or its officers, boards, commissions,
agents, or employees for any loss, cost, expense or damage arising out of any
provision or requirement of this franchise or because of its enforcement.
E. Non— Enforcement. The franchisee shall not be relieved of its
obligation to comply promptly with any of the provisions of the franchise by
any failure of the County to enforce prompt compliance.
Section 19. REGULATORY ENTITY.
Regulation: The Board of Commissioners reserves the option to designate
a regulatory,commission to promote and develop access to the CATV system.
Membership, term and functions of that commission shall be established by
resolution when the Board of Commissioners chooses to exercise the option.
In the absence of a regulatory commission, the Board of Commissioners requires
of the County Manager performance of the following functions:
1. Advise the Board of Commissioners on applications for franchises,
unless the Board of Commissioners shall otherwise provide for the handling of
this function;
2. Advise the Board of Commissioners on matters which might
constitute grounds for revocation of the franchise in accordance with this
Ordinance;
3. Resolve disagreements among franchisees, subscribers and public
and private users of the system; such decisions of the County Manager shall
be appealable to the Board of Commissioners;
4. Advise the Board of Commissioners on the regulation of rates
in accordance with this Ordinance. The said advisory function shall be in
the form of a written report to the Board of Commissioners, which shall
include recommendations to the Board of Commissioners and the facts upon
-30-
which the said recommendations are based;
5. Coordinate franchisee and County activities for the best use of
public facilities and channels of the system;
6. Advise the Board of Commissioners regarding general policy
relating to the services provided subscribers and the operation and use of
public channels, with a view to maximizing the diversity of programs and
services to subscribers. The use of public channels shall be allocated on a
first come, first served basis, subject to limitations on monopolization of
system time or prime time;
7. Require an audit of all franchisee records required by this
Ordinance and, in his discretion, require the preparation and filing of
information additional to that required herein.
8. Make an annual report to the Board of Commissioners, including:
an account of franchise fees received and distributed, the total number of hours
of utilization of public channels, and hourly subtotals for various programming
categories, and a review of any plans submitted during the year by franchisee(s)
for development of new services.
, .
9. Conduct evaluations of the system at least every five (5) years
with the franchisee, and pursuant thereto, make recommendations to the Board
. .
of CommiSsioners for amendments to :this Ordinance of the franchise agreement.
- 10. The County reserves the right to amend this Ordinance from
time to time as it shall deem to be in the public interest.
Section 2C% .FRANCHISELP PIICATION.
Requests for Proposals: The Board of Commissioners may, by advertisement
or any other means, solicit and call for applications for CATV system franchises,
and may determine ax d fix any date upon or after which the same shall be received
by the County, or the date before which the same must be received, or the date
after which the same shall not be received, and may ,make any other determinations
-„:
and specify any other times, terms, conditions or limitations respecting the
soliciting, calling for, making and receiving of such applications.
Section 21.-.EkTECTIVE DATE.
This Ordinance shall become effective upon its adoption.
ADOPTED- THIS -1 qt day of ,Tune ,
1981.
1
Chairman of the/Board of Commissioners
-31-
Oft, 11..
SHERIFF'S
REPORT
MID -MONTH MEET-
ING CHANGED
ADJOURNMENT
Commissioner Brock made a motion that the Townsand the County be
authorized to accept proposals from the various cablevision companies.
Commissioner Shaw seconded the motion and it carried. Mr. Brock
explained that the cablevision committee appointed by the Board will
remain active.
The Sheriff's Report for the month of May was presented to the Board.
The Board informed those present that the mid -month meeting in June
would be held on June 22 instead of June 15.
The Harnett County Board of Commissioners meeting duly adjourned at
11:30 a.m.
Secretary
✓. c �cJA
Assistant Clerk
irman