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Home My WebLink AboutPACKET Light and Power 1986-06-05L LIGHT AND POWER COMMITTEE JUNE 5, 1986 AGENDA 1, CABLE SYSTEMS, INC, - GENE SMITH, PRESIDENT 2, POWER PAC CONSENT FORM 3. REPORTS: OLYMPUS CASCADE SALES RATE STUDY SHUT-OFFS - PROJECTS 91 .,430 . . a.. 1 11 r 6.4%?:m pt . 2.4 +3- ..Â·41 . 5.4.3fiteeEeTt0"824 I . . . 1 4... .2 1 C . .V ..:94.655:19/** . i . 4-,47. r:*4'*1*= & 8 9,11, 4'. A.4. iot 4 193 0 9. I % K - 741 -1 ' .. / .- I I *9/+4 45 Â· I. ' ---TAL:t . 5 4 Yet 5 34.6 4..:%-14 9 9- A ..1 4'*f 11 ., ., RECEIVED 97 -/:4564. 1 9 ./.4*4Â·' 2. ES i . A Y 4 .. 1 JUN 5 1986 . ' ?6 %49-1 A . .. t'"' ., .4=7Â·19 WewÂ« A- - \ A - - TOWN OF ESTES PARK 4, t-42Â· 24.2 0 01 .TOWN ADMINISTRATOR ' L .4- Lf 6 6Â£-d- A,u, #44%.bl X .E - 7 k'43% re 4 1 -0 f.; - 02,~*2- 22 .00- 4 sy y..7â‚¬h 1- *Lop/4 t~.f %.2/ti} ~~ .r- '-. ~ 2 Ut~ 9 1 - T"f ...19;.4 OJâ‚¬- -lfq@kiL~ ,6 -6-32-, 3 2 . & 0./A 1 4.,1.14.13% -Â»~Â»d- U..4 t *2622 6 0-Â»i-- I .... '34$23 4 ' Se:.4/ ... 14. 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E24;L-1 w Â«9Â£3 0"9 Â· 4 . 0~02Â£-tâ‚¬ 2 P + A #. r 4% p i 46 -4 - 3 + 4=-ra i.~ J ... -' -I -Â» , - 44 ', 6%/~5Â«fâ‚¬ / .t, 4 4 ': 4 4. . t. , 4 - 'tyl- ... , Sk b ' â€¢ <.... ./ I.-I. r. , 1 ,. I + U )1Â£Â£122& X4-11 S- A-,5 +R<M &,ruL- - I .1 Nt. 41.4.9 Â¥t *. 1 gl,/ k .......447in + - gr '4 d 0195 1 6416 -14 QjL . L â€¢r 1, r # 6Â· r i. * r F - - t. 2 . 4%4:12 : 4 7:.2:V7 V .L-*i.12.. 4 i '**1... 1 + 04*342 4.-' . I * r Â· r~ ,~: j I i':4 0/ ./. - + - , 1 ' R 4 4 <14,1,;4 -*744â‚¬7--,FS> ' :lt. I. RECEIVED JUN 3 1986 - John and Lorraine Roberts, Acct. # 5732 Devil's Gulch Route, 720 South Lane 16,4,% LF ESTES PARK Estes Park, Colorado, 80517 TOWN ADMINISTRATOR June 2, 1986 To the Light and Power Committee of the Estes Park Board of Trustees: Our cable TV is satisfactory in most respects. We have some suggestions about offerings, however. We suggest dropping the present Channel 5 and Channel 10. Replacing them with KBDI, PBS Channel 12 in Broomfield (not the Religious 12) and KDVR. Channel 31, independent in Denver--these replace- ments would "make our day"! Mr. Eugene Smith, please consider our suggestions. Sincerely yours, iA I a-- GfeeL+04,4 -Tte,M/ZU> 6. -i ,ma~tz. , RECEIVED JUN 3 1986 Estes Park TOWN uF ESTES PARK JOWN AOMMVISTRATOR June 1 Light & Power Committee Estes Park Board of Trustees When a person can travel across the plains of Nebraska, Kansas, Wyoming, South Dakota, far removed from any large city television stations, and get much, much better reception than Cable is giving us here, then there has to be some kind of a rip-off somewhere. Committee of Irate Cable Viewers 420. . 1820 FALL RIVER ROAD 0 MORAINE ROUTE ~E PONDEROSA LODGE (303) 586-4233 ESTES PARK, COLORADO 80517 TOBY & CHRIS FARREL - OWNERS MAY 29, 1986 4 . TOWN OF ESTES PARK .7 LIGHT AND POWER DEPT. After reading the letter in the paper about the alleged poor reception and service from Cable Systems I feel that I have to give my opinions on this subject. When we purchased the Ponderosa Lodge In June of 1~81 we : were appalled at the quality of our cable reception. Most. notable was the lack of reception on Channel 4 on Sundays for the Broncos games. We had many irate customers who could not even watch the game due to very poor reception. Nothing improved until the present owners took over and completly revamped the entire line system on route 34 west. I know that they have also done many improvements to the equipment which is beyond my ability to understand the fine points. I consider my reception at my home and the Lodge very goode Estes Park is the first place that I have had cable, but after living in the East for many years I can truly say that this is the best reception that I can remember having. I would also like to say that the service has always been prompt. Many times it takes a while to find and fix the problem but at least I know they are working on it and that it will be cleared up as soon as possible. To sum up; Even though nothing is perfect I think Cable Systems has done a fine job with what they had to work with and I have confidence that they will continue to do their best for the customers of the E@tes Valley. Sincerl y, cc; Town Trustees 021~ A-OP Robert Decker Cable Systems Â· CABLE SYSTEMi INC. - - Phone 316/624-6267 P.O. Box 1274 Liberal, Kansas 67901 May 20, 1986 # 4 ?Â·>' 4.2 TAN,<5~' CO -:. Mr. Jay L. Stone %9 .\.0- dÂ«?' P. O. Box 3036 ff . .â‚¬f Estes Park, CO 80517 - . f.- A 76 u Dear M r. Stone: 16 Thank you for your letter of April 28, 1966 and your previous letter. I am sorry you interpreted a failure of written response to indicate that your first letter went unnoticed. I assure you that it did not. Neither did your second letter. I am glad to note that you have had experience in military radio-carrier operations because you will be much better able to understand some of the problems we encounter in the Estes Valley. First, I would like to discuss the off air reception. Our antennae farm is on top of Prospect mountain at an elevation below the mountains to the south, which I believe are called Twin Sisters. To receive a Denver broadcast station (Channelg 2,4,6,7, and 9) we have a choice of several valleys or depressions in the mountain range to the south or southeast through which to beam our antennae. Several signals from each Denver broadcast station, many of which are at a signal strength level which can provide a viewable T.V. picrure, are received at the antennae site. The problem is that each signal follows a different path and arrives at che ant:ennae site at a slightly different time. Sometimes (in fact much of the time) each of these signals is reflected on the TV screen as a leading or trailing ghost - the same picture offset by an 1/8ch to 1/4 of an inch on the screen. No doubt you have noticed this and also noticed that the intensity of the ghosting varies from time to time with changes in the atmospheric conditions and changes in the vegetation, snow and ice conditions in the mountains and mountain valleys between Estes Park and Denver. As you know, from your experience with FM transmission, the solution, if there be one, to this ghosting problem, lies in attempting to foeus on a single signal and simultaneously reject all the other signals. As you also know, this is a very difficult problem when the sources of the signals are no more than 3 to 10 degrees apart. We are presently experimenting with some antennae configurations and phasing equipment in an effort to eliminate the ghosting problems. Some engineers think we can improve the situation, others think we are noc likely to accomplish much due to the multiplicity of incoming signals from closefy spaced azimuths. There are also at least three other problems affecting off air reception. One is the problem of a translator broadcasting on the VHF television frequencies in the Estes Valley. There is a translator to the northwest of our tower site which broadcasts on T.V. channel 8. The frequency on this translator drifts badly and from time to time interferes with off air reception of both Denver channels 7 and 9. We have attempted to eliminate this interference by installing a screen and moving our channel 7 and 9 antennae down the southeast side of the mountain in an effort to use the mountain as a blocking mechanism. This has worked to some extent, but has not totally eliminated the problem. We have also furnished the translator operator with filters which could be installed on his transmitter. I am not certain he has tried to utilize them. Mr. Jay L. Stone ./. 1 - May 19,1986 Page 2 The second problem is noise and static which we believe may originate from power transmission facilities in the Estes Valley. We have taken readings on the BLM or U.S. government power tranamfulon lines in the vicinity of our tower â€¢ite and down the mountain to the southeast, and find as much as a 30 volt potential between the grounding wires on the poles and our meter ground rod. We believe there may be a considerable power loss from grounding problems and perhaps broken or defective Ingulators which result in broadcast noise in the TV frequency band, particularly channel 2 and 6. We experience the same problems on channel 6 in our Kansas systems. We are investigating this matter and are attempting to obtain cooperation from power transmission authorities, but our past experience suggests that even with the best cooperation of power transmitters the problem can not be totally eliminated. A third problem ig reception from distant transmitters (as far away as New Orleans) which, we receive from time to time at our antennae. As you know, these . signals result from cloud or ionospheric conditions from time to time and are virtually impossible to eliminate. They are more pronounced in our Estes Park system than in any of our other systems, although they occur everywhere from time to time. The increased frequency with which they occur in the Estes Park system 19 probably attributable to the high altitude of our receiving antennae. We know of nothing we can do to eliminate this problem. Since your first letter, we have replaced equipment in our head end in an attempt to correct the satellite reception problems you mentioned. Hopefully our new receiver will not jump from ESPN to another satellite trangponder. Your latest letter indicates that at least our effort in this area may have been successful. With respect to the other satellite channel problems you mentioned, in your last letter, I do not have enough information at the present time to evaluate or comment on the situation. In other systems we have had complaints or problems similar to those you describe and the problem has been eliminated by realignment of the T.V. set. However, tf you have 3 TV receivers in your home and suffer the same problem on all of them, k would appear the problem originates somewhere outside the set, and that your neighbors may be suffering the game problems. I asked Steve to take a test set to your home and check out all the wiring in your home and in the neighborhood to see if a trouble source can be detected and I understand he has done this and made some adjustments. I hope it helped. I have talked to Steve several times about the problems you mentioned, and he is not indifferent to the prqblems, but so far has been unable to solve all of them with conventional trouble shooting techniques. He will not be able to solve the off air reception problems immediately - and maybe never - but we are working on those problems. Since you advised you were also getting poor reception of satellite signals we have tried to address those problems. We were not aware they existed to the extent you described and hope that you have seen Borne improvement. Be assured we will conti:lue our efforts in this area. We will continue, ag we have in the past, to try to overcome the many obstacles to good TV reception and cable transmission in the Estes Valley. We hope our efforts will result in better viewing for you and our other customers, but unfortunately we can not guarantee they wUL If you have any thoughts as to how the off air reception and transmission problems might be overcome, we would surely appreciate your input, as we are constantly seeking solutions. , 1fay 20, 1986 - Page 3 I realIy appreciate your taking time to monitor the pictures and provide us with your comments. If you will continue to keep Steve advised of problems, it will help us to locate and correct problems. Too often problems go uncorrected because we are not aware they exist. In your two letters you indicated you felt you were not gettlng fair value for the price you pay, and that other people in other locations pay less for more and better. While I do not totally agree on either point, when comparing apples to apples, nonetheless, I understand how you could have reached such a conclusion. On the other hand, we feel that we have been subsidizing our customers at Estes Park for the last two and a half years, have operated at Sa loss of between $100,000.00 and $200,000.00 each year, have in addition macie capital improvements in excess of $200,000.00, are continuing to lose money in the operation, and expect to for at least a couple more years. Operating costs in the Estes Valley are much higher than in any of our other systems. We have over 80 miles of cable plant serving 1,500 to 1,600 customers. Our system at Scott City serves a comparable number of customers with about 22 miles of plant. Our office rent is higher, our tower site rent is higher, our pole rental cost per pole is higher, there are 4 times as many poles per customer due to the distance between houses, our vehicle expense is three to four times higher than anywhere else, our power costs are higher, our communications costs are higher, we have 5 employees who are underpaid and overworked where normally we would have only 3 to serve the same number of customers, we have an investment in excess of $600.00 per customer where normally it would be $300.00 or less. I could go on and on. However, I understand you operate a business of your own, so I imagine you can translate the numbers I have given you equally as well as I can. In addition to the foregoing, we have become captives of the satellite programmers and many have increased their fees by 30043 to 400% and have promised more increases in the future. The only thing we can do about it is to canvass our customers to see which, if any, of the programs they want to continue to watch at the prices the programmers intend to charge as the customers eventually will have to pay the bills. We expect to make such a canvass before the end of the year, as we anticipace we will have to raise our rates again, or change the programming. 1 am sorry to have to advise you that our price to our customers will not go down, but in all probability will go up in the future. I wish it could be otherwise, but wishing does not make it go. I expect to be in Estes Park the first week of June, 1986, and hope you will have some time to see me. I will take you up on your suggestion to view the pictures and it will give me an opportunity to compare with others I have seen in the flatlands. Also, I would like to hear your further comments about the quality of cable service in Estes Park and how to improve it. The utilities committee of the Town Board has asked me to meet with them at 2:00p.m. on June 5, 1986. Perhaps they would also like to have your input if you can make it to che meeting. In any event, I will let you know when I get to town and will look forward to meeting with you. Very truly yours, CABLE SYSTEMS, INC. Eugene L. Smith ELS:ddd CC: Steve Anderson Ken Anderson Dale Hill, Estes Park Town Counctl Utilities .-. .. , ' E. I. t " 0 . 1, 1/â€¢ i i 1 t..2 0 , i A 403~42 te.~1~7 <l<?~11+ . May 9, 1986 + b: :#60 0/5'd N. 2-l A -. 4. - 2/14â‚¬. 0 / 11Â«~ l Mr. Steven Anderson Cable Systems, Inc. .9100 23. 1 P. 0. Box 2807 Estes Park, Co. 80517, Dear Mr. Anderson: . Our agreement, in April, 1985, was that for *800.00, your company would have installed, by June 1, 1985, i the cable line that would give us, "a perfect picture i on every channel, on every set in our home, at 671 High View CourV; in Estes Park. You made this state- ment after you had looked at the property, in a phone call to me in Kansas City. You cashed my check for - $400â€¢00, the first part of May. We called the Mennings, who were living in the Estes Park house, toward the end of May, to check on how the installation was going. Mrs. Menning said that she . L had not seen or heard from you. We called the office, and were told that the work would be done on time. -6 However, when we moved in, the first week of June, the 1 . 99. work had not even been begun. You neither apologized, nr expressed any regret for not having the work done - instead, you acted as though you were annoyed with 22 for bothering you. It was another two weeks before the line was brought in, and then, we were not given the decoder boxes for an additional ten days after thatl During this last time 4 .Â· z * period, we tried, in vain, to get the boxes, 80 that we could see television. We finally called you at home about the matter, twice, Each time, we were assured that you were sending them up "right awayM, but it was i one week before we even received one box. Again, our impression was that you resented us for bothering you. From the first day that we were able to use our sets, we started calling the office to report the unaccept- able quality of the reception. Even on our brand new 25. Sony, the Denver stations were generally lousy, with electrical interference on several of the other -.*c= channels. ion the otheratwojoets,-all the ohannels werâ‚¬7 ~'usually undeclpherable.Â¥< :UY,Â·N. Â· S. . 2 --1- ' 1 , '-- 1 : 6-1.. . '. 0 -t , -2- 1 - . No one came out for over two weeks, although we called sometimes twice a day, to ask for a serviceman to coil#~Â·Mi h.045â€¢. During this time, one of us remained at home, day after day, in order not to miss the serviceman. The man who finally showed up, told us that the cable tower on Prospect Mountain "needed some work", but that he didn't know when your company could "get a- round to it"! He also informed us that we would have to build a separate line from the highwaj for each set that we expected to get good reception on. When we were able to talk to you, you sald that a separate line was not necessary for each set, but you never came up, or seRE-anyone else to the house, until we kept on calling for another two weeks or 80. The man who, finally, did come up, left before even viewing the 2nd and 3d sets - he was, ~in a hurry"I Finally, in August, you came out, looked at the pic- tures and told us that:1) the main trouble was the "Translator" tower, which was above us, and 2) our sets â€¢eren' t ~shielded", and needal to be fixed. We asked you to recommend the best person for this work, and we called that man. He told us that there was nothing wrong with any of our sets, at all, and that the , trouble was up to the cable company to fix. He ad- vised us to insist on having you, only,come back out to the house, as no one else was knowledgeable about the situation. He said that we should get our money back, 1.f the reception was not improved. Well - we began again, to call the cable office, and to try to get you to come out to the house, explaining what the T. V. repairman (that you had recommended) had told us. Once, you made an appointment to come out, but had the lady at the office call,tend say that you were too busy, and would send somebody else, later. We reiterated what the T. V. man had said, but got no response. At this time, we requested that HBO be dis- connected, as we had just sat through Wimbledon, not even able to see that there were tennls courts ont our screens. This was done right await No one offered to make the picture better, or suggested that it might be made so. -0- I. MÂ¢ ; 5.1-Â·13/94.L, NOT UNTIL, MUCH LATER, WHEN I RECEIVED A BILL FOR AN - ADDITIONAL $400.00, AND CALLED TO EXPRESS MY UTTER ' ASTONISHMENT, WAS THERE ANY FURTHER ATTEMPT TO ~ ' -4 REMEDY THIS SITUATION! ' When you dld, at long last, come out to the house, it took you only a few minutes to discover that your servicemen had used old and damaged cable wiring,that was already in the house, for the 2nd and 3d sets. Replacing this old wiring with nbw, vastly improved the picture on the downstairs set, although the bed- room set remains emarginal~, but usually, watchable, except for PBS, which I ~Udll most of the *tening and nighttime hours. X. At this time, you again said that the pictures could not be further improved because of the "Translator" tower above us.. I reminded you of the fact that, when I first talRed to you on the phone from Kansas City, you were to check the property. and report back to me about the suitability of having the cable brought ln. Remembering that , when you called back, you were in Estes Park, and had actually seen the property, and ~ I was stiII-rn Kansas City, I: had every reason to be- -1- Ileve that you were giving me the true story when you [ : promised me ,"a perfect picture on every channel, on J every set". Neither, at that time, nor later, when we met you lon the spot", did you even mention the ~Translator" tower being a problem, although it has been (I am told) in the _sam9 place for years ! Since I made every effort, ahead of time, to find out the exact situation, and thought that you were com#e- tent and truthful in promising me, "a perfect picture on every channel, on every setw, I entered into an agreement with you. I believe that, it 6*ueu not un- reasonable of me to have expected that you, here, ON THE SPOT, should have knomi that we would have trouble with our reception, and that the line would not (apparertly) be adequate for three sets. Further, I think that you had an obligation to inform me of the .factâ€¢ truthfully. In addltionA I belleve that we shadth& rlght to expect prompt a d courteous service. 4 4. .,13;. '. t -4- , I wish to make it clear that the Office personnel were unfallingly pallite, sympathetic and helpful: to us when we called. You seem like a nice person, and I'm sure that you did not deliberately set out to misinform us, or single us out for Yatl-En. service. However, I do believe that your company has not treated us fairly, or even honestly, let alone being even minimally concerned with anything other than getting all the money you can out of us. I certalr~l~ 1 r do not think that you have lived up to our agreement. Because you FINALLY did something to alleviate the worst of the problems, I van' t see that it wlpes outjtktÂ· MONTHS of ignoring us, and "passing the buck", as lt were. It seems to us, that you should have returned, at leqsb gome of the money you received from us,in recompense for your total lack of infor- mation and service. We certainly don't want any trouble and unpleasantness betweeen us. I have consulted an attorney, Mr. John Phipps, who advised me to send you this letter, some time ago. I just put it off, hoping that your sense *1 i of fairness would preclude your asking for morm money, r after putting us through so much anguish. We feel that this trying and exhausting experience, was almost totally unnecessary. We do not like to complain, at all, let alone beg and plead for servicel The proof of this, is, that, when you corrected the wort of the problems, we simply ~gave up" trying to get any further improvement, and accepted the sltuation.. Indeed, if this is the best reception we can get up here, from your' cable, then - so be lt. It is a whole lot better than nothing at all, and I don't want to be without it. Surely, Mr. Anderson, you can see that we have tried to be agreeable. It was difflcult to decide to protest this bill,Wa86-5446 strongly, that we have been badly used by your comphny, and that the attention we finally got, Was 22, late, and came- after -80 much distr*an.to:tus, that fok.you to expect any additrEnal money, seems, frankly, outrageous! 11 . .. -2- '. A I hope that we can settle this disagreement to our mutual satisfaction. We are interested in resuming HBO, and in subscribing to many other cable services, as (we hope) they become available in Estes Park, - if the reception can be reasonably consistent in quality. I shall await further word from you and/or your parent company. Sincerely, Mrs. Margery L. O'Shea i 671 Hlgh Vlew Court Moralne Route Estes Park, Co. 80517 (303) 586-3932 CC Better Business Bureau of Fort Collins Paula Laing John Phipps - Â·Gene Smith . 1 - '. r. f Exclusive cauie-franchisas'test; ..# . free'speech; high court rsays.ff 1.. , I WASHINGTON (AP) = The Su. preme Court raised Lhe possibility yesterday Chat communities vio- 4 Denver cable firms- pleased i Late free-speech rights by granUng 1 exclusive cable television fran- t with ruling, but want more'9. j.chisa e. -: ,,,.., ,; Ina unanimous' ruling, the court . 'By THOMAS SCHILLING ..0.Â·I,nd c..:Ir Â·' J' 6.J> "I t .f.,7..(f hinted that cable TV operators ; Rocky Mountain News StaN Writer .21. may have constitutional rights more similar to publishers than to :Â·, Denver-area cable television companies cheered yesterday's Su- television and radio broadcasUng preme Court ruling that the cable industry may have some free- companies. - 2 '1 speech protections, even though they'd hoped for a stronger state- But thi justices stopped khort of , ' agreeing with a federal appeals "This is what we expected," said James Duffy, a spokesman for court that the right to operate a ; . American Television & Communication Corp., the country's sec- ....r cable system is, consUtutionally ond-largest cable operator. "We are confident that, eventually, the f=la=t flzt:= i :29d~u~try, 'ill, get k~lt. First Ampndment p~t*ons it de~iÂ· tween the city of Los Angeles and . . If the high court extends free-speech protection to cable televi- a cable TV concern denied a ffan- 4 sion, the industry expects the right of municipalities to franchise, _chise there. Â·Â·Â·. - ' Â· .. 1 - charge fees and regulate the industry will be reduced substantially. "Clearly, the 'court is leaving For example, Denver may not have been able to require Mile-Hi any kind of determination regard- i Cable to provide community accep channels under a free-speech; ing the First Amendment to a later , hi losophy. P day," said John Mansel, a Washing- 1 ' However, some cable operators expected a stronger endorse- ton legal analyst for Paul Kagan ment of free-speech protection than was contained in the court's and Associates, a leading cable f irm. 1 ' "We were hopihg the First Amendment implications would be ~ In another ease involving cable , much stronger," said J.C. Sparkman, executive vice president of 1~ television, the court agreed to de- 1 cide whether federal and state reg- : Tele-Communications Inc., the nation's largest operator. 9 But, municipal officials say they don't see such far-reaching Inies&,3% Ntacht 5%irowift implications and don't expect to lose their powers._ '? .1 -t , Â· , . - :,ziwmr:z:, r:Z-81Zie~i ~ p "It's a far piece from what the court said to where the cable companies would like to take it," said Bill Bradley, Denver's director of telecommunications. "I don't think the court said the t law allowing such rate regulation. First Amendment applies equally to (cable, newspapers, book The Florida case ts an important ~ publishers and broadcasters). Cable may be a First Amendment f "bread-and-butter"case that.could 1 - speaker L but a different kind." ' r Â·- - 2 - '-- : 1 affect prices charged cable users, 1 . : The free-speech issue wasn't the only concern addressed by the ' said Charles P. Northrop, vice 1 .11 rt's ruling. Many in the cable industry see the demise of the CO president and general counsel for 1 exclusive franchise as a double-edged sword. -Â·-:. ~ :; Â·Â·, Â· Jones Intercable Inc.. a Denver- 1 If the franchises that ciUes have doled out to cable companies t)~~ted&~b~~~~Ulare un-~ ~ =Itillarein~~ ~xu~11;~~esm;iJ>UraN'WIXSMZ feltered, it could get real expen-. 1 services there. sive," said Northrop. '1'he costs i - "It would become a very competitive situtation," said one opera- would be passed on to consumers." ~ tor. "Nobody succeeds when there is an overbuild." -' In the Los Angeles cable TV ~ . < case, Justice William H. Rehnquist , *said cable franchise activities "plainly implicate First Amend- ment interests" that protect free expression: J ' But Rehnquist said tuat does not mean a cable company has a con- stitutional right to operate in a particular community. That ques- Uon must be answered after more evidence is accumulated in the Los Angeles dispute, he said. Other cases testing the indus- f try's free-speech rights probably . will go to trial first in Sacramento, Calif: Jefferson Ci4, Mo., and St. Paul, Minn., according to legal an- alyst John Mansel, of the cable lirrn,F'aul Kagan.-and.Nmociat, 1 LOS ANGELES officials said al- lowing cable TV to proliferate Â· there would hurt the city's appear- ance because of additional wires strung from utility poles. They also said more franchises could force streets to be dug up to lay cable creating safety hazards and t ALTHOUGH YESTERDAY'S inconvenience. ' James P. Mooney; president of ruling wasÂ·limited the case even- i the National Cable Television As- tually may have far-reaching im- ~ 9ociation, hailed the ruling as an pact for ciUes and cable operators. Important victory, f'Â· Â· Â· I Many cities award either one '"This clearly is not the end of citywide cable franchise or, like : cable's quest for full recogniuon as Los Angeles, a single franchise for a First Amendment medium. But each section of the city. 1. Â·,Â·7 -t. 1 in Supreme Court terms. it is a splendid beginning," he said. t - -a In Denver, for example, three -But Los Angeles Deputy City At-' companies submitted bids for the torney Edward J. Perez said the citywide cable franchise in 1982, ruling is limited. 71. Â· 1, : : 2 but only Mile Hi Cablevision was [ "It's a very narrow opinion given the francise. However, an- which didn't lean one way or the other cable company could be al- other," he said. 0- ,- -* 0 -Â· ,lowed to operate in Denver under L At stake is the right of a Eable current regualtions,Â· according to company to operate, a right grant- < Bill Bradley, the citrs director of ed newspapers and other publica- telecommunications. tions. Past court rulings have es- ~ The r,Aing upheld a decision by tablished that no such right exists ~ the 9th U.S. Circuit Court of Ap- to run a television or radio station. ipeals fhat ordered further hearings ' The content of programs is not at lin the dispute. issue in the Â·dispute. Â·. 'Â· ' L D i."3-Â·'L,~Uâ‚¬.~4 r Â·-1 ikmaller cities revie* ~ cable TV franchises \ By ANDY OAKLEY the renewal phase. Some of them have buy-out clauses in their agree- Small cities hope to tune into ments, and they're looking at the more revenue and greater control by possibility of exercising those." taking over cable systems operated A handful of communities have by private companies. considered "build-overs," the build- The cable industry has entered an ing of a new cable system to com- era of refranchising. As old agree- pete with an established private ments between local governments cable company. and cable companies expire, munic- "The cable industry as a whole is ipalities are studying the feasibility concerned that a number of munici- of operating their own cable sys- palities will be going (with buy- terns. outs). It's been in the trade journals The largest cities were slow to for the last few months - a feeling choose their first cable franchise. that municipal ownership is going But many of the nation's small to be something that cities will look ~ cities, which signed franchise agree- at in a large-scale way," Ms. Rice ments in the 1970s, now face said. 1 renewal of their contracts. During the 1970s, municipalities I Cable television analysts estimate were courted by numerous com- that almost half of the 5,600 fran- panies wanting to setting up the chise agreements in the United city's first cable franchise. Local States will expire in the next five governments often found themselves years. in the middle of a virtual bidding Some local officials believe they war - one company trying to outdo can raise money by becoming part the other with offers of glarnorous I of an industry whose revenue the packages that included everything National Cable Television Associa- from the best premium channels to i tion predicts will nearly double to channels where viewers respond 1 $16.5 billion by 1990. electronically to the programs. Officials either want to buy out Cable companies, eager to land existing cable companies or start exclusive franchises, agreed to con- cable operations of their own to tract terms attractive to municipal- keep down monthly rates charged ities. Today, those agreements are city residents, to provide special expiring or soon will. Company community services - or just get rid executives say they experience deja I of cable companies they don't like. vu as they return to the bargaining Whatever the reason, most munic- table to hash out new franchise ipalities would need to borrow deals. money to gain a foothold in the Cities examined the possibility of cable business. Once there, they municipal ownership during the expect their systems eventually to first franchising boom, said Cath- pay for themselves and maybe even erine Rice, an associate with the to turn tidy profits. National League of Cities. "It's hard to get a finger on how Most shied away from the option large a trend it is," said Jean Rice, because of potential First Amend- president of Rice & Associates, a ment complications and because of Washington telecommunications the problems of running a large sys- consulting firm with municipal cli- tem, Ms. Rice said. ents. "A number of cities are now But some smaller cities accepted looking at municipal ownership in Continued on page 40 Small cities reclaim cable Continued from page 3 The cable company's franchise system is older, expansion hasn't the challenge, especially those was allowed to expire when the been easy. already operating a utility with the company took no action on a City "We just about reached our limits. cables and the experienced staff in Council request that it upgrade its We've had to do a lot of modifica- place to run a cable system. system, Mr. Watson said. _ tion to get to where we are," said re~ewfa~s' do~t Sseem to begoing ~ When you fool with a city that owns board since its inception. "They'd never talk to the city. Mr. Fowler, who has served on the with setting up their own system, its own electric system, that has the Mr. Fowler said he believes there Ms. Rice said. But with the deregu- expertise to go into cable, boy is potential for a municipality to lation of rates at year-end and the you're spitting in the wind," he , make money on a cable system. potential for cities to rake in cable said. - "Our conception was not to be a revenues, the potential is there, she If the city sets up its own cable revenue producer. But if properly said. system, officials guess that Adams- run, you can make money if you The Cable Communications Policy Russell will leave the city because have a good area to operate in," he i Act of 1984, which granted munici- of the competition. If it then cap- said. "There have been some right palities the right to run their own tures between 60% and 70% of the bad situations in this state alone ~ tomer rates would be deregulated at city utility will break even within nothing. That's the tendency when systems, also provided that cus- market, the cable operation of the where a system is run right down to the end of 1986. five years, Mr. Watson predicted. you run a system for revenue an Since rates probably will rise, "The city's hope is to earn some ~ forget about upkeep." . ~~~*governments view municipal takeover as a way to keep them enue then can be used for funding have to pay anything to receive 30 ~ revenue off this," he said. "The rev- Twin Rivers, Wis., residents don't other city projects." channels on a town-funded cable Morganton, N.C. is being sued by Adams-Russell is waiting to see system with a 52-channel capacity. one cable operator for violating the what happens, and is urging Para- The system, started up Jan. 12, 1984 act, and officials of the com- gould not to go ahead with plans. serves fewer than 200 homes, but munity of 13,700 have been forced City officials say they expect a more are being hooked up each day, to put plans for starting their own majority of voters in the community said Mary Ann Cherveny, town cable television system on hold. of 15,300 to endorse the referendum. clerk. Madison Cablevision, part of Tele- "From the corporate viewpoint, Over several years, Twin Rivers Communications Inc., has filed a we think it would be a mistake," has accumulated a surplus from lawsuit against Morganton's plan to said Mike Zimmer, general manager interest earned on investments that let company's franchise expire in of Adams-Russell's cable division. has enabled it to spend more than October. Buy-outs arid build-overs are relati- $500,000 for cable operations, she "They've taken us to court saying vely new to the indUStly. Yet many said. we don't have the authority to take municipalities were establishing their Two five-person committees I their system down," said Craig own systems, with success, before the formed by the town government Kivett, interim city manager. private concerns came to town. oversee cable television program- He said the city still might take "The idea of buy-outs came up ming and the accompanying cable advantage of a buy-out option in the just recently, but public ownership emergency warning system. i franchise agreement. isn't new," said Anne Marie Gib- The original reason for setting up Although plans are on hold as the bons, legislative representative for the cable station in Twin Rivers, L lawsuit makes its way through court the American Public Power Asso- which is located near the Point i - a judgment may be handed down ciation. Beach Nuclear Plant, was to install as early as this month - the city is Community Service Inc. of Frank- a nuclear accident warning system reviewing ways to finance a cable fort, Ky., is the oldest - and one of through cable, Ms. Cherveny said. system. the largest - municipal cable sys- "But we didn't think they wanted Preliminary estimates place the tems, according to a list of 49 their lawns dug up just for an alert ~s~lfieost~~l~srhg3t~1~71~yusatle~enat has compiled. TV," she said. municipal systems the association system, so we threw in the cable eral fund is $5 million, and its entire Frankfort's system was launched As surplus revenue is depleted, budget is $23 million. , back in 1952 by the municipal elec- residents might have to begin pay- Morganton's financing options tric and water authority. Since the ing a fee for cable television, Ms. include issuing general obligation city is located in a river valley, resi- Cherveny added. i bonds or setting up a lease-purchase dents in the pre-cable era had Though the Cable Communica- agreement. Under a lease-purchase, always had bad reception. tions Policy Act of 1984 permitted a private concern would lease the The utility authority heard about municipalities to run their own sys- cable system to the city, which experimentation with cable televi- tems, it also discouraged them from i eventually would own the system. sion in Pennsylvania and started a doing so. Voters in Paragould, Ark., will pilot project of its own. The federal act establishes a series decide June 17 whether the city The 1952 'pilot system worked. of rules for proceedings in franchise should borrow $2.3 million to start The authority, however, didn't want renewals. A private operator can its own cable system to replace one to operate a cable television system request public hearings up to three operated by Adams-Russell Com- so it sold it to the city. The City years before expiration of a fran- I pany Inc., which has served resi-Â· Council appointed six people to chise agreement. dents for 23 years. operate the system as a non-profit The governing body of the munic- The city would back the bonds, corporation. ipality cannot use past franchise but they would be paid off with Today, Community Service sup- violations against a private cable I subscriber fees. ports itself on an annual budget of operator when determining whether The city's proposal would offer $850,000, said Ben Fowler, an attor- a cable agreement should expire or residents 40 operating channels at a ney and president of the cable be revoked, and communities can't basic monthly rate of $10, compared board. demand exotic cable services as the with 11 channels for $11 from Some 9,500 subscribers can tune price for renewal. Adams-Russell, said Larry Watson, in 23 channels at a basic monthly Section 627 of the act allows a assistant manager of the Paragould cost of $3.50 - one of the lowest city to buy a cable system if a fran- utilities department. rates in the country. But since the chise expires or is revoked. â€¢ Â£ 1, 3.J ler- 526 -66 4-7 <6351~ 11 4 - 1)1 Di j 421 - L 2 1.- 34 4 - I i J 4 'Â°91 ( 0= f (lu?' b Af ty ) 4 2912 ~ hia~ 0-2 64â‚¬,4 : Q.~ i Â»4 \%36 U id-4-6 iI- --_ _- â„¢~1.1-.-&*f*â€¢...*.V*-w 7 4 1 0,000. jact ~ die 4.7-.. 162 ci -_'Â¥4 i 1 43 7 - . *44 000 ,04wuti b'.,,22. 4 16Â« 09.6 7 - eALÂ© ale ~02 E..4 +01 ( 00 0 73 4 -db %734 ~te de~ Le,CAu 6-xo (S 7-414 El-4-4 F 6 721 Tv oÂ».2444 40 aet caa,L-1 11.Â·t - i , 40< *.*..~.... - -' ./.'-/ .-- -Il.b1..*. I-/I- -/ - .... I~...-~ . -'- .~I. .. -I./.-..-: :...*.*-#-- I ./.-+ I.' .....~ ~0 7 'f A GuAf- 4 a.Â£Â£ .pieup . 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(Z~ ~-j_e.&~19 M us IC - ADCA (4) i Ers 041 - el u EMAL L*3 i I - Â·ck * +3 C W k) r r t f , ~ 00cs,odrl OFFECF B PERMIT AGREEMENT + LOPY 3. A 1-+C r Â· iLL\/ /'h r'i (1 WHEREAS, the Town of Estes Park, Colorado hereinafter called the "Town" has considered the granting of a cable television permit and has reviewed and analyzed the technical ability, financial condition, legal qualifications, general character and other factors of the party who has applied for a permit; and 61.1-:Ne 'r WHEREAS, the Board of Trustees of the Town of Estes Park, after such consideration, analysis and deliberation, has approved and found sufficient the technical ability, financial condition, legal qualifications, character, and other factors of the proposed applicant; and ~ WHEREAS, the Board of Trustees wishes to grant to Estes Park Cable TV Company, hereinafter called "Grantee", and Grantee wishes to accept on the terms and conditions herein set forth a permit to acquire, own and operate a cable television system in the Town of Estes Park. Section 1. Title of Agreement. This Agreement shall be known and may be cited as the "Estes Park=Estes Park Cable Television Permit Agreement." Section 2. Definitions. For the purpose of this Agreement, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future words and the plural number include the singular number, and words in the singular number include the plural number: 1. "Town" is the Town of Estes Park, Colorado, and shall include the Town Administrator or his duly authorized agent acting on behalf of the Town. 2. "Board" is the Board of Trustee of the Town of Estes Park, Colorado. 3. "Cable television system" or "CATV system" is a system of antennas, towers, satellite earth stations, microwave, co-axial cable, fiber optics, waveguides, other conductors, converters, equipment and facilities, designed and constructed for the purpose of . - producing, receiving, transmitting, amplifying and distributing, audio, video, and electrical signals to persons who subscribe to programs and services delivered by such signals. Said definition shall not include any such facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control or management, and does not use Town rights-of-way. 4. "Person" is any person, firm, partnership, associa- tion, corporation, company or organization of any kind. 5. "Grantee" is Estes Park Cable TV Company who is the person granted a non-exclusive revocable permit under this Agreement and the appropriate ordinances of the Town. Section 3. Grant of Non-Exclusive Revocable Authority. (A) There is hereby granted by the Town to the Grantee a Certificate of Convenience and Necessity [Permit] for the right and privilege to construct, erect, operate and maintain, in, upon, along, across, above, over and under the streets, alleys, public rights-of-way and public places now laid out or dedicated and all extensions thereof, and additions thereto, in the Town, poles, wires, cables, underground conduits, manholes, and other television conductors and fixtures necessary for the maintenance and operation in the Town of a CATV system for the interception, sale and distribution of television radio signals. The rights and privileges herein granted to the Grantee shall be exercised in accordance with applicable laws and ordinances. (B) The right to use and occupy said streets, alleys, public ways and places for the purposes herein set forth shall not be exclusive, and the Town reserves the right to a similar use of said streets, alleys, public rights-of-way and places to any person at any time and under any terms and conditions the Town may determine. Section 4. Incorporation of Proposal. The Grantee shall provide all services, technical standards and system design specifically set forth in its proposal to provide cable television service within the Town. By its acceptance of the Certificate of Convenience and Necessity, the Grantee specifically grants and agrees that said proposal is hereby incorporated by reference and made a part -2- P . 11 i: H of this Agreement. Section 5. Compliance with Applicable Laws and Ordinances. The Grantee, shall, at all times during the life of this ~ 1 Permit, be subject to all lawful exercise of the police power by the Town and to such reasonable regulation as the Town shall hereafter provide and shall comply with all ordinances of the Town both currently existing and hereinafter passed. In accepting this Permit, the Grantee acknowledges that its rights hereunder are subject to the police power of the Town to adopt and enforce general ordinances necessary to the safety and welfare of the public. Section 6. Duration and Acceptance of this Permit. (A) This Permit and the right, privileges and authority hereby granted shall take effect and be in full force from and after final passage of a resolution by the Town Board accepting this Agreement, and shall continue in force and effect for fifteen (15) years or until revoked or terminated, providing that within thirty (30) days after the date of the passage of said resolution, the Grantee shall execute this Agreement and file the same with the Town Administrator of the Town. Should the Grantee fail to comply with the terms relative to the execution and filing of this Agreement, it shall acquire no rights, privileges or authority under this Permit whatsoever and any of the agreements contained herein shall be null and void. (B) At the expiration of the term for which this Permit is granted, or upon its termination as provided herein, Grantee shall, within six (6) months; remove at its own expense all portions of the CATV system from all streets and public property within the Town. If Grantee fails to do so, Town may perform this work at the expense of Grantee. At the option of the Town, a surety bond shall be furnished by Grantee in an amount reasonably determined by the Town to be sufficient to cover this expense. Said bond shall be in the form approved by the Town Attorney. Said bond shall be filed within five (5) days of notice to Grantee. -3- 30 Days to Sign ~ (C) Grantee shall have the option of extending this Permit for the additional period of ten (10) years upon the following terms and conditions: 1. Grantee has performed all of its obligations under the terms of.this Permit. 2. Grantee receives the written approval of the Town for this optional period. 3. The parties mutually agree as to the appropriate terms and conditions of this extension. b 4. The Town is notified in writing one hundred twenty E days (120) days prior to the exercise of this , option. 11 Section 7. Construction Time Table. 1 (A) Grantee shall obtain all permits as required by the ordinances of the Town or other applicable laws within sixty (60) ; ~ days of the date of signing this Agreement. Construction of the system in accordance with the plans submitted by the i' Grantee shall commence as soon after the signing of this i G Agreement as is reasonably possible, but, in any event, within thirty (30) days after the obtaining of all necessary permits. r- C , (B) Within six (6) months from the date of the signing 4. of this Agreement, the Grantee must make cable television i 3 services available to every dwelling unit within the corporate ~ 53 4 11 . 22 boundaries of the Town. The nineteen (19) required channels set 1 4.4 r q !;: forth in Section 30 (B) shall be provided to fulfill the require- li ~ 4 * ments of this paragraph for cable television service. (C) Any delay beyond the terms of this time table, unless specifically approved by the Town, will be considered a failure to proceed expeditiously and shall be deemed a material breach of this Agreement for which the provisions of Sections 32 and 4,9 33 of this Agreement shall apply. (D) Witbid- sixty (60) days after the completion of the system as required in Section 7 (B) above, the Grantee shall provide to the Town an audit of all pole attachments including attachments to both Mountain Bell and Town poles. In the event the Grantee uses any poles other than those of the Town or Mountain Bell, said attachments shall be included in the audit including all poles under the control of Grantee. -4- 60 Days for Permits ~ Channels ~ Pole Audit &/ 42-_ Section 8. Construction and Technical Standards. (A) COMPLIANCE WITH CONSTRUCTION AND TECHNICAL STANDARDS. The Grantee shall construct, install, operate and maintain its system in a manner consistent with all laws and ordinances of the Town. The CATV system shall also be constructed according to the construction standards submitted by Grantee and approved 6404" 3 - by the Town prior to acceptknde of this franchise. Said 3 -I standards are hereby incorporated into this Agreement by this reference. In addition, Grantee shall provide the Town with a written report of results of Grantee's annual proof of performance tests conducted pursuant to FCC standards and requirements. (B) ADDITIONAL SPECIFICATIONS: Construction, installation and maintenance of the cable television system shall be performed in an orderly and workmanlike manner. Cables and wires may be installed on poles where existing power lines are installed on poles. They must be installed underground, however, parallel with electric and/or telephone lines where these facilities now, or in the future, are placed underground. Multiple cable configura- tions shall be arranged in parallel and bundled with due respect for engineering considerations. Grantee shall at all times comply with: National Electric Safety Code (National Bureau of Standards); National Electrical Code (National Bureau of Fire Underwriters); Bell System Code of Pole Line Construction; and Applicable FCC or other federal, state and local regulations I In any event, the system shall not endanger or interfere with the safety of persons or property in the franchise area or other areas where the Grantee may have equipment located. Any antenna structure used in the Town's cable television system shall comply with construction, marking and lighting of antenna structure, required by the United States Department of Transportation and the ordinances of the Town. The proposed 3 location of any antenna structure within the Town limits must receive approval from the Town Building Inspector prior to commencing construction. -5- ons't Standards . All working facilities and conditions used during construction, installation and maintenance of the CATV system shall comply with the standards of the Occupational Safety and Health Administration. (C) RESTORATION OF PUBLIC AND PRIVATE PROPERTY TO PRIOR CONDITION. In case of any disturbance of public and private property, the Grantee shall, at its own cost and expense, replace and restore all private or public property to as good a condition as existed before work on said property was initiated. Should Grantee not restore any damaged property within thirty (30) days after receiving notice of said damage, the Town, at its option, may restore the property and charge Grantee's letter of credit for the costs of such restoration. (D) STAND-BY POWER. The Grantee shall maintain equipment capable of providing standby power for headend for a minimum , of two (2) hours. (E) EMERGENCY AUDIO OVERRIDE. The Grantee shall incorporate into its cable communication system, the capabil- ity which will permit the Town in times of emergency to over- ride the audio portion of all channels simultaneously. The Grantee shall designate a channel which will be used for emergency broadcasts of both audio and video. The Grantee shall aid the Town in the use and operation of the emergency alert override system and shall make its facilities available upon the request of the Town. In the event there are Federal grants available for this purpose, the Town agrees to cooperate with the Grantee in the obtaining of said grants for the purpose of financing the construction or operation. (F) The Grantee shall construct its system and facilities, including the equipment used therein, so that said system is, within reason, as advanced as the current state of economically I feasible technology will allow. Section 9. Signal Quality Requirements. The Grantee shall: (A) Produce a picture, whether in black and white or in color, that is undistorted, free from ghost images, and -6- accompanied with proper sound on typical standard production TV sets in good repair, and as good as the state of the art allows; (B) Transmit signals of adequate strength to produce good pictures with good sound at all outlets without causing cross-modulation in the cables or interfering with other electrical or electronic systems; (C) Limit failures to a minimum by locating and correct- ing malfunctions promptly, but in no event longer than forty- eight (48) hours after notice of any malfunction to Grantee. (D) Demonstrate by instruments and otherwise to subscribers that a signal of adequate strength and quality is being delivered. Section 10. Color TV. The facilities used by the Agreement shall be capable of distributing color TV signals, and when the signals the Grantee distributes are received in color, they be distributed in color. Section 11. Operation and Maintenance of System. (A) The Grantee shall render efficient service, make repairs promptly and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum use of the system. (B) The Grantee shall maintain an office and a studio in the Town, which shall be open during all usual business hours, have a listed telephone, and be so operated that complaints and requests for repair or adjustments may be received at any time. Said studio shall have a minimum of 1,200 square feet and shall contain the equipment set forth 1, A" on Exhibit , attached hereto and incorporated herein by this ref~rence. Said office and studio shall be operational within two 2) years of the date of this Agreement. (C) The Grantee shall not allow its cable or other operations to interfere with television reception of persons -7- . not served by the Grantee, nor shall the system interfere with, obstruct or hinder in any manner, the operation of the various utilities serving the residents within the Town. (D) Any customer complaint involving any service provided by Grantee under this permit shall be answered within forty-eight (48) hours of Grantee's receipt of the same. Section 12. Future Services Updated. The Grantee shall make available to the Town, when economically practical, services additional to those described herein and in the company's oral and written presentation, including, but not limited to: utility meter reading capabili- ties, emergency services for police, fire and municipal utili- ties and other services, and to provide such services under mutually agreed terms and conditions. The Grantee agrees to keep the Town advised as to new services which become available or economically and technologically practical. The Grantee shall continually update its facilities, equipment and services so that the system within the Town is, within reason, as advanced as the current state of economically feasible technology will allow. Section 13. FCC Rules and Regulations. All FCC regulations shall be complied with including, but not limited to, the carriage of the programming of any existing or future television broadcasting stations which covers the Town in its principal broadcasting area. RF leakage shall be checked at reception locations for emergency radio services to prove no interference signal combinations are possible. Stray radiation shall be measured and adjacent to any proposed aeronautical navigation radio sites to prove no interference to airborne navigational reception in the normal flight patterns. FCC rules and regula- tions shall govern. Section 14. Program alterations. All programs of commercial broadcasting stations carried by the Grantee shall be carried in their entirety as received, with announcements and advertisements and without additions. -8- - EXCEPTION: The foregoing restriction on programming alterations shall not be applicable in any national or local emergency. Section 15. Service to Schools and Town. (A) The Grantee shall provide service to public and parochial school locations and teaching stations within the Town for educational purposes 4229 request by the Town and at no cost to it or to the school system. Said service shall include only one free drop per building. Any additional drops, outlets and/or service shall be provided at cost. The ; Grantee may, at its election, provide similar services without cost to non-parochial private schools. The Grantee shall also provide outlets to the Estes Park Municipal Building at locations of the Town's choosing at Grantee's expense. (B) The Grantee shall provide to the Town, at no cost to the Town, three channels, as follows: 1. One channel shall be provided until said channel is transmitting eighty (80) hours per week. 2. An additional channel until said channel is transmitting eighty (80) hours per week. 3. The third channel after the first two channels are transmitting eighty (80) hours per week. 4. The Town shall designate the location of said. channels. Section 16. Other Business Activities. (A) Neither the Grantee hereunder nor any shareholder, officer, employee, or director of the Grantee shall engage in the business of selling, repairing, or installing television receivers, radio receivers or accessories for such receivers, within the Town during the term of this authority. (B) This Permit authorizes only the operation of a CATV system as provided for herein, and does not take the place of any other certificate, license, or permit which might be required by law of the Grantee. Section 17. Areawide Interconnection of CATV Systems. ; (A) INTERCONNECTION REQUIRED. The Grantee shall interconnect , origination and access channels of the cable system with any or all other CATV systems in adjacent areas, upon the directive -9- Schools - Town f . . of the Town. Interconnection of systems may be done by direct cable connection, microwave link, satellite, or other appropri- ate method. (B) INTERCONNECTION PROCEDURE. Upon receiving the directive of the Town to interconnect, the Grantee shall immediately ini- tiate negotations with other affected system or systems for both construction and operation of the interconnection link. (C) RELIEF. The Grantee may be granted reasonable exten- sions of time to interconnect or the Town may rescind its order to interconnect upon petition by the Grantee to the Town. The Town shall grant said request if it finds that the Grantee has negotiated in good faith and has failed to obtain an approval from the system or systems of the proposed interconnection, or that the cost of the interconnection would cause an unreasonable or unacceptable increase in subscriber rates. (D) COOPERATION REQUIRED. The Grantee shall cooperate with an interconnection corporation, regional interconnection authority or town, county, state and federal regulatory agency which may be hereafter established for the purpose of regulating, financing, or otherwise providing for the interconnection of cable system beyond the boundaries of the Town. (E) INITIAL TECHNICAL REQUIREMENTS TO ASSURE FUTURE INTERCONNECTION CAPABILITY. The Grantee shall install and maintain its cable system as follows: 1. All cable systems are required to use signal pro- cessors at the headend for each television signal. 2. The Town also urges Grantee to provide local origination equipment that is compatible through- out the area so that video cassettes or videotapes can be shared by various systems. Section 18. Safety Requirements. (A) The Grantee shall at all times employ ordinary care and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injuries or nuisances to the public. (B) The Grantee shall install and maintain its wires, cables, fixtures and other equipment in such manner that they will not interfere with any installations of the Town or of a -10- public utility serving the Town. All such installation shall be subject to the approval of the Light and Power Department of the Town. (C) All structures and all lines, equipment and connections in, over, under the streets, sidewalks, alleys and public ways or places of the Town, wherever situated, or located, shall at all times be kept and maintained in a safe,Â· suitable, substantial condition and in good order and repair. (D) The Grantee shall locate sufficient employees, equipment and replacement inventory within a five (5) mile radius of the Town limits in order to provide safe, adequate and prompt service for facilities. Section 19. Conditions on Street Occupancy. (A) All transmissions and distribution structures, lines and equipment erected by the Grantee within the Town shall be so located as to cause minimum interference with the proper use of streets, alleys, easements and other public rights-of-way and places, and to cause minimum interference with the rights and reasonable convenience of property owners who join any of said streets, alleys or other public ways and places. (B) In case of disturbance of any street, sidewalk, alley, public way or paved area, the Grantee shall, at its own cost and expense and in a manner approved by the Town, replace and restore such street, sidewalk, alley, public way, or paved area. All such work must be done within ten (10) days following notice, in compliance with requirements of the Town and approved by the Town Engineer. For reasonable cause, the ten (10) day period shall be extended for an additional twenty (20) days following approval for said delay by the Town Engineer. (C) If at any time during the period of this Agreement the Town shall lawfully elect to alter or change the grade of any street, sidewalk, alley or public way, the Grantee, upon notice by the Town, shall remove, relay and relocate its poles, wires and cables and underground conduits, manholes and other fixtures at its own expense. (D) Any poles or other fixtures placed in any public way by -11- I I 1 the licensee shall be placed in such manner as not to interfere 11 with the usual travel of such public way, subject to prior 4 written approval by the Town Engineer. 9 (E) The Grantee shall have the authority to trim trees '~ upon and overhanging the streets, alleys, sidewalks, and public rights-of-way, places and easements of the Town so as to prevent the branches of such trees from coming in contact with the wires and cables of the Grantee, such trimming must be done under the supervision of the Town Engineer. (F) In all sections of the Town where all cables, wires or other facilities of public utilities are placed underground, the Grantee shall place its cables, wires or other like facili- ties underground. In the event that all cables, wires or other facilities of public utilities are eventually placed underground, the Grantee shall place all its cables, wires and like facilities underground. All such facilities shall be installed in such a manner as to create minimum interference with existing structures and improvements, including landscaping. All equip- ment of Grantee shall be placed so as to not interfere with existing public or private utilities. (G) The Grantee shall, on the request of any person holding a building moving permit issued by the Town, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal or raising or lowering of wires shall be paid by the person requesting the same, and the Grantee shall be given not less than fifteen (15) days advance notice to arrange for such temporary wire changes. Section 20. Permit Territory. (A) This Permit is for the present territorial limits of the Town of Estes Park, Colorado, and for any area henceforth added or annexed thereto during the term of this Agreement. (B) Grantee shill-_93_tend_cable television service to every dwelling unit in all areas annexed to the Town after the date of this Agreement within six (6) months of the date of annexation. -12- Annexations . Section 21. Fiscal Reports. The Grantee shall file annually with the Town Administrator, no later than ninety (90) days after the closing of Grantee's fiscal year, a copy of an audited financial report applicable to the cable television system including an income statement applicable to its operations during the preceding twelve (12) month period, and a balance sheet. These reports shall be submitted along with such other reasonable information as the Town may request with respect to the Grantee's properties and expenses related to its CATV system operations within the Town. Section 22. Removal of Facilities upon Request. Upon termination of service to any subscriber, the Grantee shall promptly remove all its facilities and equipment from the premises of such subscriber upon his request. Said removal shall be done in such a manner as to prevent damage to any property. > Section 23. Transfer. The Grantee shall not transfer this Permit to another person without prior approval of the Town The Grantee shall promptly notify the Town of any actual or proposed change in, or transfer of, or acquisition of any other party of, control of the Grantee. The word control as used herein is not limited to major stockholders but includes actual working control in whatever manner exercised. Every change, transfer, or acquisition of control of the Grantee shall make the franchise subject to cancellation by the Town unless and until the Town shall have consented thereto, however, such consent shall not be unreasonably withheld. For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, the Town may inquire into the qualifications of the prospective controlling party, and the Grantee shall assist the Town in any such inquiry. Section 24. Filing and Communications with Regulatory Agencies. Copies of all petitions, applications and communications submitted by the Grantee to the Federal Communications Commis- sion, Securities and Exchange Commission, or any other federal or state regulatory commission or agency having juris- -13- diction in respect to any matters affecting CATV operations authorized pursuant to this Permit, shall also be submitted simultaneously to the Town. Section 25. Town Rights. (A) The Town, or its designated representative, shall have t~: the right to inspect books, records, maps, plans, income tax 10 1 returns, and other like materials of the Grantee at any time during normal business hours. (B) The Town shall have the right during the life of this Permit, to install and maintain free of charge upon the poles of the Grantee any wire and pole fixtures necessary for a police alarm system, on the condition that such wire and pole fixtures do not interfere with the CATV operations of the Grantee. (C) The Town shall have the right to supervise all con- struction or installation work performed subject to the provi- sions of this Permit and make such inspections as it shall find necessary to insure compliance with the terms of this Agreement. E'Section 26. Maps, Plats and Reports. The Grantee shall file with the Town Engineer true and accurate maps or plats of all presently existing underground utilities and proposed cable installations prior to construction. Said maps to be prepared from the present maps and plats available to the Town, Public Service Company and Mountain Bell. Said maps shall be used to coordinate installation of the systems with other utilities and facilities within the Town. Grantee shall furnish two updated copies of "as Built" maps to the Town Engineer within sixty (60) days of completion of each phase of construction. Section 27. Reserved. Section 28. Further Agreement and Waiver by Grantee. The Grantee shall abide by all provisions of this Permit and shall not at any future time set up as against the Town the claim that the provisions of this Permit are unreasonable, arbitrary or void. -14- . Section 29. Erection, Removal and Common Use of Poles. (A) No poles or other wire-holding structures shall be erected by the Grantee without prior written approval of the Light & Power Director with regard to location, height, type and any other pertinent aspect. However, no location of any pole or wire-holding structure of the Grantee shall be a vested interest and such poles or structures shallÂ· be removed or modified by the Grantee at its own expense whenever the Light & ~ Power Director determines that the public convenience would j be enhanced thereby. i t! (B) Where poles or other wire-holding structures already n existing for use in serving the Town are available for use by the ti 11 Grantee, but it does not make arrangements for such use, the h Town may require the Grantee to use such poles and structures if it determines that the public convenience would be enhanced thereby and the terms of the use available to the Grantee are just and reasonable. (C) When the Town or a public utility serving the Town desires to make use of the poles or other wire-holding structures of the, Grantee but agreement therefor with the Grantee cannot be reached, the Town may require the Grantee to permit such use for such consideration and upon such terms as the Town shall determine to be just and reasonable, if the Town determines that the use would enhance the public convenience and would not duly interfere with the Grantee's operations. Section 30. Required Services. (A) The Grantee's cable distribution system shall be capable of carrying at least thirty-six (36) television --*--il-- channels and shallÂ· carry at least nineteen (19) channels initially. Further, Grantee shall provide the services more fully set forth in Paragraph 15 (B) for non-commercial public affairs service and educational programs for the benefit of the inhabitants of the Town. (B) The following required channels shall be available to all persons presently receiving cable television service within ninety (90) days of the date of this Agreement. Said channels ~ 9 r Reg'd service - 90 Days shall be provided to said persons without charge for any installa- tion fee, hookup fee, line extension fee or other set-up charge. Said required channels shall be continued by Grantee during the term of this permit unless written notice is received from the Town requiring any change in the required channels. Said required channels are as follows: Denver 2, 4, 6, 7, 9, 12 Cheyenne 5 Atlanta WTBS Chicago WGN New York WOR 1.# Â£ Ah r'Ifâ€¢,fV Christian Broadcasting Network Local Origination Channel (Town) Message-Time-Weather (C) The Grantee shall make portable video equipment available on a free rental basis to residents for public service purposes pursuant to the following terms and conditions: 1. Grantee may charge residents a reasonable deposit for the safe return of said equipment. 2. The user shall be responsible to the Grantee i for any loss of or damage to said equipment. 3. Said equipment shall be available to residents on a "check-out" basis, and Grantee shall be given reasonable notice by a resident who wishes to use said equipment. 4. Residents may not use the equipment for longer than a reasonable period of time, nor more frequently than is reasonable. 5. Grantee may deny use of said equipment by any resident who, in the judgment of the Grantee, is not competent, in the care or use of said equipment. Section 31. Rates. (A) Initial Rates. 1. The Grantee shall establish initial rates for its services in accordance with the rates as set forth in Exhibit "B". 2. Initial basic subscriber rates shall be effective for a minimum of one (1) year from the date of the Agreement. 3. The Grantee may request a rate change at any time after said one (1) year provided that not more than one (1) request may be made by the Grantee in any twelve (12) month period. (B) Rates Subject to Review. 1. The Town shall have the authority to review the following rates, fees and charges: (a) Rates for the provision of services to subscribers, whether residential or commercial. (b) Rates for the connection, installation and reinstatement (including converters) of basic service, whether residential or commercial. lc- Rates (C) Rates for installation, connection and reinstatement of basic service where unusual circumstances exist such as remote or inaccessible subscriber locations or subscriber requested underground service drops. 2. The Grantee may petition the Town for a change in rates by filing, in triplicate, a proposed rate schedule with the Town Board which petition shall include the justification(s) for the proposed schedule. Said petition shall be filed at least sixty (60) days prior to the requested implementation date of the rate change. 3. Within thirty (30) days of the filing of the petition for rate change, the Town shall consider the proposal. 4. Within thirty (30) days after said consideration, the Town Board shall render a decision on the Grantee's petition, either accepting, rejecting, modifying or deferring the same. The Town Board shall consider, among other things, the following factors in approving or disapproving the petition: (a) the ability of the Grantee to render system services and to derive a reasonable profit there- from under the existing rate schedule and under the proposed rate schedule; (b) the revenues and profits derived from system services; (C) the efficiency of the Grantee; (d) the quality of the service offered by the Grantee; (e) the original cost of the system less depreciation; (f) a fair rate of return with respect to the cost of borrowing and the rates of return on investments having similar risks to that of community antenna television; and (g) fairness to Town resident, subscribers and users. 5. If the Town fails to render a decision either accepting, rejecting, modifying, or deferring Grantee's petition within sixty (60) days of the Grantee's petition pursuant to subsection (b) above, the Grantee shall thereafter be entitled to put its proposed new rates into effect. 6. The Grantee's petition for a rate increase shall include, but not be limited to, the following financial reports, which shall reflect the operations of the Estes Park system only. (a) Balance sheet; (b) Income statement; (C) Statement of Sources and Application of Funds; (d) Detailed Supporting Schedules of Expenses, Income, Assets and other items as may be required; and (e) Statement of Current and Projected Subscribers and Penetration. Section 32. Forfeiture of Permit. (A) In addition to all other rights and powers -17- pertaining to the Town by virtue of this Permit or otherwise, the Town reserves the right to terminate and cancel this Permit and all rights and privileges of the Grantee hereunder in the event of a breach of its conditions, which includes, but shall not be limited to the following: 1. Violates any provisions of this Permit or any rule, order, or determination of the Town made pursuant to this Permit; 2. Becomes insolvent, unable or unwilling to pay its debts, or is adjudged bankrupt; 3. Attempts to dispose of any of the facilities or property of its CATV business in violation of the terms of this Permit; 4. Attempts to wilfully subvert any of the provisions of this Permit or practices any fraud or deceit upon the Town; 5. A material misrepresentation of fact in the applica- tion for or negotiation of this Permit by Grantee; or 6. The Town shall have the right to revoke this Permit ninety (90) days after the appointment of a receiver, or trustee, to take over and conduct the business of the Grantee, whether in receivership, reorganization, bankruptcy or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said period, or unless: (a) Within ninety (90) days after his election or appointment, such receiver or trustee shall have fully complied with all the provisions of this Permit and remedied all defaults thereunder; and (b) Such receiver or trustee, within said ninety (90) 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 Permit. (B) The Town shall be required to give thirty (30) days notice in writing of the aforementioned violations. Grantee shall have said thirty (30) day period to correct said specified violations prior to the termination of this Permit by the Town. Section 33. Penalties. (A) For the violation of any of the following provisions of the Permit, penalties shall_be chargeable to._th_e__lett_gr of credit and/or performance bond described herein as follows: 1. For failure to complete system construction and provide service in accordance with the terms of this Agreement pnleSS the_Town seecifically approves the delay, due to to the occurrence of conditions beyond the company's control, the Grantee shall pay $50.00 per day for each day or part thereof the deficiency continues upon the demand of Town. -18- 2. For failure to test, analyze and report on the performance of the system as required by the FCC, Grantee shall pay $50.00 per day for each day, or part thereof that such non-compliance continues. The filing of a copy of said compliance with the Town shall be proof of compliance by Grantee. No penalties shall be assessed until Grantee has received ten (10) days written notice of its failure, but penalty shall be due from the date of failure. (B) The Town shall have the authority to terminate this Permit if either of the above failures continue for more than ~ sixty (60) days. The Town may elect to accept the penalty in lieu of termination after said sixty (60) day period, but such acceptance shall be on the sole discretion of the Town and may be cancelled at any time. Section 34. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Permit is for any reason held invalid or un- constitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions hereof. : Section 35. Letter of Credit. Within twenty (20) days after the signing of this Permit, . -. the Grantee shall deposit with the Town a letter of credit from a financial institution, acceptable to the Town, in the continu- ing amount of $10,000.00. The form and content of such letter of credit shall be approved by the Town Attorney. Said letter of . credit shall be used to insure faithful performance by the Grantee of all provisions of this Permit, and compliance with all orders, permits and directions of any agency, commission board, department, division or office of the Town having jurisdiction over its acts or defaults under this Permit, and the payment by the Grantee of any claims, liens and taxes due the Town which arise by reason of the construction, operation or maintenance of the system. -19- Letter of Credit . The letter of credit shall be maintained at the Town Administrator's office during the entire term of this Permit, even if amounts have to be withdrawn pursuant to Items 1 and 2 of Section 33. If the Grantee fails to pay to the Town any compensation within the time fixed herein, or fails after thirty (30) days notice to pay any damages, costs or expenses which the Town is compelled to pay by reason of any act or default of the Grantee in connection with this Permit or fails after thirty (30) days notice of such failure by the Town to comply with any pro- vision of this Permit which the Town reasonably determines can be remedied by demand on the letter of credit, the Town may immediately request payment of the amount thereof, with interest and any penalties, from the letter of credit. Upon such request for payment, the Town shall notify the Grantee of the amount and date thereof. The rights reserved to the Town with respect to the letter of credit are in addition to all other rights of the Town, whether reserved by this Permit or authorized by law, and no action, proceeding or exercise of a right with respect to such letter of credit shall affect any other right the Town may have. The letter of credit shall contain the following endorsements: "It is hereby understood and agreed that this letter of credit may not be cancelled by the surety nor the intention not to renew be stated by the surety until thirty days after receipt by the Town, by registered mail of a written notice of such intention to cancel or not to renew. This letter of credit shall not be released without the prior approval of the Town." Section 36. Construction and Performance Bond. Within thirty (30) days after the award of this Permit, the Grantee shall obtain and maintain at its costs and expense, and file with the Town Administrator, a corporate surety bond in the amount of $25,000.00 in a company authorized to do business in the State of Colorado and found acceptible by the Town, to guarantee the timely construction and full activation of the CATV system. -20- Bond i ln the event the Grantee fails to comply with any law, ordinance or regulation governing the grant of this Permit, or fails to observe, fulfill and perform each term and condition of the permit, including the Grantee's proposal which is incorporated herein by this reference, there shall be recoverable, jointly and severally, from the principal and/or surety of the bond, any damages or loss suffered by the Town resulting from the failure of the Grantee to satisfactorily complete and fully activate the CATV system throughout the area where the CATV system will be initially available to subscribers pursuant to the terms and conditions of this Permit. The bond shall contain the following endorsement: "It is hereby understood and agreed that this bond may not be cancelled by the surety nor the intention not to renew be stated by the surety until thirty (30) days after receipt by the Town, by registered mail, a written notice of such intent to cancel or not to renew." Section 37. Payment of Fee to the Town. For consideration granted by the Town to the Grantee, the Grantee shall pay to the Town an amount equal to three (3%) percent of the gross revenues received by Grantee within the confines of the Town. The parties agree that the amounts of this franchise fee is based upon a regulation of the Federal Communications Commission limiting such fees to the said three (3%) percent figure. In the event it is determined that the FCC regulation is no longer applicable, or the limit is raised, I the franchise fee will be subject to re-negotiation. I For purposes of this section, gross revenues shall mean 1 -- + all revenue derived directly or indirectly by the Grantee, its affiliates, subsidiaries, parent, and any person in which the Grantee has a financial interest, from or in connection with the operation of a cable television system pursuant to this Permit, provided, however, all revenues shall include, but not be limited to, basic subscriber monthly feep, pay-cable - fees, installation and reconnection fees, leased channel fees, - converter rentals, and advertising revenues, and that this -21- Fees paid Town ~ . . shall not include any taxes on services furnished by the Grantee herein imposed directly upon any subscriber or used by the state, town or other governmental unit and collected by the Grantee on behalf of said governmental unit.+ Except as otherwise provided herein, this fee and any other costs or penalties assessed shall be payable quarterly and the Grantee shall file a complete and accurate verified statement of all gross receipts within the Town during the period for which said quarterly payment is made. The quarterly payment shall be paid within ninety (90) days after each accounting date. It is agreed that the fee under this section for each year of this Permit shall not be less than $1,000.00. The Town shall have the right to inspect the Grantee's income records and shall have the right to audit and recompute any amounts determined to be payable under this Agreement; provided, however, that such audit shall take place within thirty-six (36) months following the close of each of the Grantee's fiscal years. In the event that any payment or re- computed amount, cost or penalty is not made on or before thirty (30) days following notice given by the Town as a result of the audit, interest shall be charged at the annual rate of 18%. Section 38. Foreclosure. Upon foreclosure or other judicial sale of all or a substantial part of the CATV system, or upon the termination of any lease covering all or a substantial part of the CATV system, the Grantee shall notify the Town of such fact, and such notification shall be treated as a notification that a change in control of the Grantee has taken place, and the provisions of this permit governing the consent of the Town Board to such change in control of the Grantee shall apply. Section 39. Notices. All notices to either party provided for in this Agreement shall be sent by certified mail, return receipt requested, -22- . . addressed as follows, and shall be effective the day of mailing. (A) Town of Estes Park Post Office Box 1200 Estes Park, Co. 80517 (B) Estes Park Cable TV Company ~â€žÂ·/~'~ f.o.Box 0801 Estes Park, Colorado 80517 Section 40. Indemnification. The Grantee shall, at its sole cost and expense, fully indemnify, defend and hold harmless the Town, its officers, boards, council and employees against any and all claims, suits, actions, liabilities and judgments for damages or penalties, including, but not limited to, expenses for reasonable legal fees: 1. To persons or property, in any way arising out of or or through the acts or omissions of Grantee, its servants, agents or employees, or to which the Grantee's negligence in any way contributed. 2. Arising out of any claim for invasion of the right of privacy, defamation of any person, firm or corporation, or the violation or infringement of any copyright, trademark, or patent, or of any other right of any person, firm or corporation. 3. Otherwise arising as a result of the granting of this franchise. The foregoing indemnity is conditioned upon the Town giving the Grantee notice within thirty (30) days of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this section. No recovery by the Town of any sum by reason of the letter of credit required herein shall be any limitation upon the liability of the Grantee to the Town under the terms of this section, except that any sums so received by the Town shall be deducted from any recovery which the Town might have against the Grantee under the terms of this section. Section 41. Liability and Insurance. The Grantee shall maintain, and by its acceptance of this Permit specifically agrees that it will maintain throughout the term of this Agreement, liability insurance of a type and containing the terms and conditions approved by the Town Attorney, insuring the Town and the Grantee with -23- Insurance ~ . . regard to the following damages: (A) $500,000.00 for bodily injury or death to any one person, within the limit, however, of $1,000,000.00 bodily injury or death resulting from any one accident; (B) $500,000.00 for property damage resulting from any one accident; (C) $400,000.00 from all other types bf liability. The limits of said insurance may be increased from time to time upon the request of the Town in order to reflect changes in coverage reasonably made necessary by inflation, statutory changes, and other factors. Section 42. Right of First Refusal. (A) Grantee hereby grants to the Town the right of first refusal of any purchase offer of the CATV system. If . the Grantee elects to sell the sytem and obtains an offer for purchase, it shall forward to the Town the terms and conditions of said offer. The Town shall have sixty (60) days from the receipt of said offer to elect to purchase the system under the same terms and conditions. In the event the Town elects to purchase the system, it shall notify Grantee in writing within the sixty (60) day period of said election. Upon said notifica- tion, the Town shall immediately proceed to purchase the system upon the terms and conditions specified in the offer. In the event the Town does not notify the Grantee within said sixty (60) day period or notify Grantee that it does not elect to purchase the system, the Grantee shall be free to sell the system under the terms and conditions specified in the offer. (B) Anything in this section or elsewhere in the Permit notwithstanding, Grantee shall continue to operate the CATV system pursuant to the terms hereof until control of such system is assumed by the Town or another permittee or until -24- . said system is removed pursuant to the Town's direction, whichever may be applicable. Dated this day of , 1981. TOWN OF ESTES PARK, COLORADO By Mayor ATTEST: Town Clerk ACCEPTANCE Grantee accepts and hereby agrees to be bound by all terms and conditions of this Permit. Estes Park Cable TV Company By Wayne Unze, President ATTEST: Secretary -25- . EXHIBIT A List of proposed equipment to be purchased during the next two years to provide a local access studio for Estes Park: 1. SLO-340 Sony portable 3" VTR $ 1,500.00 2. DXC-1000 Sony minicamera with tripod , 1,200.00 3. 3/4" Sony VTR 1,200.00 4. 13" color monitor 1,300.00 5. Microphones & audio mixer 500.00 6. Lights 500.00 7. Videotape 500.00 8. Miscellaneous 400.00 $ 7,100.00 Estimated time of production equipment ready for use - Spring 1982 Grantee reserves right to be able to substitute equipment of similar quality for the brand names listed above. EXHIBIT B RATES AND CHARGES MONTHLY RATES: (A) Residential or Private Use: Basic service charge for 1st outlet. .........$ 9.25 Service charge for 2nd outlet. ............ 1.50 Service charge for 3or more outlets ......... 1.00 Expanded basic service charge (all outlets). ..... 2.95* Premium (Pay-TV) service charge. ........... 8.00** (B) Commercial (Motel, Hotel, Cottage): Basic service charge for 1st outlet. . ... ...... 9.25 Service charge for 2 thru 25 outlets ......... 2.50 Service charge for 26 or more outlets. ........ 2.00 Expanded basic service charge per outlet ....... 2.50 Premium (Pay-TV) service charge per outlet ...... open *** INSTALLATION CHARGES: (A) Residential or Private Use: Basic service (initial outlet) ............ $15.00 Each additional outlet ................ 5.00 Relocation (cable at location) ............ 7.50 Relocation (new cable required). ........... 10.00 Premium service (with basic install) ......... Free Premium service (separate call). ........... 10.00 Expanded basic service (with basic install). ..... Free Expanded basic service (separate call) ........ 10.00 (B) Commercial: Basic service (initial outlet) ............ 15.00 Each additional outlet ................ Cost Premium service (with basic install) ......... Free Premium service (separate call). ........... Cost Expanded basic service (with basic install). ..... Free Expanded basic service (separate call) ........ 7.50 *If subscriber owns a converter, monthly rate is $2.45. **Discount of $1/month for those taking more than one premium service. ***Discount tied to vacancy rate given commercial accounts subscribing in bulk to premium service. DISCONNECT POLICY: Subscribers will be notified by mail when their accounts are 30 days delinquent. If payment is not received within 15 days of the date of notice, service to the subscriber will be disconnected. Subscribers paying service representative at time of disconnect will be charged $3 service fee. Disconnected subscribers wishing to be reconnected will have to await turn in normal scheduling of install orders. LINE EXTENSION POLICY: For Cable Television service extension beyond 300 feet of the dis- tribution system, the connection charge will be $25.00 plus the company's cost of labor and materials. Estimated per foot cost of labor and materials for overhead service is 75Â¢. Cost for under- ground service is $1.40 per foot. Those service extensions requiring an additional amplifier will pay the full cost of that amplifier until such time as additional hookups in the area will create partial reimbursement for the cost of that equipment. . . RESOLUTION 31-83 WHEREAS, the Town of Estes Park issued a permit for the operation of a CATV station on July 14, 1983; and WHEREAS, Cable Systems Inc., has requested that the Town of Estes Park approve the transfer of the Permit Agreement from Estes Park Cable TV Company to Cable Systems Inc., subject to certain modifications of said Permit Agreement; and WIIEREAS, the Board of Trustees of the Town of Estes Park has determined that it is in the best interests of the Town to approve said transfer. NOW, THERFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF TIIE TOWN OF ESTES PARK, COLORADO, THAT: 1. The transfer of the Permit Agreement from Estes Park Cable TV Company to Cable Systems Inc., is hereby approved subject to the provisions of the Resolution dated August 9, 1983. DATED: August 9 , 1983. APPROVED: ~h\, rÂ·-44Â·mu i kÂ» /hn,Ld,7/ V 'Mayor ' ATTEST: AN- 4 8- 9-e-/ Town Clerk V RESOLUTION 30-83 WHEREAS, the Town of Estes Park issued a permit for the operation of a CATV station on July 4, 1981; and WHEREAS, Cable Systems Inc., hereinafter referred to as "Applicant" has entered into an agreement with Estes Park Cable TV Company for the purchase of the cable TV system; and WIIEREAS, Applicant has requested that the Town waive certain requirements under the terms of the Permit Agreement to enable Applicant to complete the transfer of the Permit to Applicant; and WIIEREAS, the Board of Trustees of the Town of Estes Park has determined that it is in the best interest of the Town to grant said waivers. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO, TIIAT: 1. The Town shall waive the provisions of Section 11 (B) with regard to the operation of a local origination studio by allowing the substitution of the High School Auditorium according to the provisions of the letter of July 26, 1983, which is attached hereto as Exhibit "A" and incorporated herewith by reference. Applicant shall still be required to provide the equipment set forth on Exhibit "A" of the Permit Agreement. 2. The Applicant shall not be bound by the provisions of Section 35 of the Permit Agreement with regard to the letter of credit so long as the Applicant establishes an escrow account in the amount of $10,000.00. The escrow account provisions must provide that said account cannot be withdrawn by Applicant without written approval of the Town and also that the Town mny draw on the account, in order to satisfy the provisions of Section 35 of the Permit Agreement. Prior to the establishment of said escrow account, the escrow instructions shall be approved by the Town Attorney. 3. The Town hereby waives the provisions of Section 36 with regard to filing of a Construction and Performance Bond and states that the provisions of Paragraph 7 (B) have been substantially complied with. 4. The Town waives the requirement for the annual filing of an audited financial statement from Applicant under the pro- visions of Section 21 of the Permit and amends such section to provide that Applicant shall file an annual balance sheet with the Town no later than 90 days after the closing of the Applicant's fiscal year. IIowever, the Town reserves the right to conduct an audit of the books and records of Applicant as provided in Section 37 of the Permit. . 5. The above amendments to the Permit Agreement are contingent upon the sale of the Cable TV System from Estes Park Cable TV Company to Cable Systems Inc. Upon closing of the transfer of the system, Applicant and Town shall execute a written amendment to the Permit Agreement containing the above stated provisions and such Agreement shall be attached to the Permit Agreement and become a part thereof. 6. The above provisions apply only to the Permit Agreement if said Permit Agreement is transferred to Cable Systems Inc. and shall not amend the present Permit Agreement with Estes Park Cable TV Company until the effective date of transfer. DATED: August 9 , 1983 APPROVED: -1/ig ,61,796% Mdyor - / ATTEST: C /7 Town Cldrk Jut,ull,~leflUCIN Direcler, nit:.ine:.:, St:tr;..,c:, PARK SCHOOL DISTRICT R-3 PO. Dox 1140 Â¥ . Estes Park, Colorado 80517 586-2361 Metro 534-2606 DR. ROBERT L. ROTH STEVEN L. PETERSON BARBARA RICHARDSON Senior High School Principal Middle School Principal Elementary School Principal 586-5321 586-4439 Director, Special Education 586-9529 July 26, 1983 Mr. Wayne Unze President of Estes Park Cable T.V. Estes Park, CO 80517 Dear Mr. Unze: The Park School District is willing to allow the High School Auditorium to be used by the Estes Park Cable T.V. as a point of origination for local access to cable T.V. under the following conditions: 1. The Auditorium will only be available when it is not being used for any school functions or other established com.munity uses such as Fine Arts Guild, Scouts, etc. 2. If the Auditorium is to be used at times when a custodian is not on duty, an overtime fee will be charged to cover this cost of custodian. 3. The Auditorium will be scheduled in advance through the Iligh School Principal's office. 4. No guarantee can be made that scenery or other such items will not be on the stage at various times. 5. The use of any school district' s VTR equipment must be approved by the High School Principal or his designee. 6. That the use of the Auditorium for this purpose will not cause any expense to the school district. 7. The school district reserves the right to terminate this agreement if it is not in the best interest of the school district. Sincere~y. ,>0>,f40 0,Â£ .r<47 lb'- 657 4' Herbert G. Wenger Superintendent of Schools HGW ; j f Mr. Dale Hill: It is my hope that the town of Estes Park accepts this letter from Mr. Herb Wenger, Superintendent of Schools as coin plying with the Local Origination Studio 'in reference to Section 11-B of the franchise agreement. . Estes rark Cable TV Company will furnish the necessary equipment in exhibit A of the agreement. Sincerely, EXHIBIT "A" .'Â·'~ 1 Vt,I: 11 t~ :t (~ -Azab, &(62,t*Â£667Â·Â· Â¥3.1 - J FAWN VALLEY 4~~ INN & CHALETS 2760 Fall River Road Post Office Box 220 Estes Park, Colorado 80517 303/586-2388 V. . f. t 21 . I . 1Â· ' 'f â‚¬ 4 5 4 1 9. r .. . I 'NA . , â€¢, 1 1 : . D f 'r . 1 r 4 "P. ,: . r i -,1 h 4 I P . U. . b - ... 54.- .. ,r 1 4. Â· . . 0 4 -- June' 4, 1986 . l. :,4 4* 1 -' 7 . 2 I: I . . . M , f . .. .. 2% + rÂ¥ /* 6 . ' I r.r '. I 4 . . I Â· i , . 4 r . Mr. Bob Dekkar. . r $ 0 . . Light & Power Deptment 1 I , . Estes' 'Park, .4 6 Colorkdo 0 4 Â· _ ' 80617 N., At â€ž 70 . , -# , 1. . 1.1" . . ' .. . I . 4. ./ 5 f .Â¢. , f ' 4 1. ~ 1 :-7 4 -i 1 ..34 e I S L '0// 4 .. Â£ /4 -21 Deaf Mr.Â·LDekkerl 1.i. 'r ' 4 r 2 - 4. 5 Â· . The 'press of summer. business-will. keep me from Attending , F . . 4. the,June 5th meetint'of the Light= & Power Committee. ' r i./ I ' ' ... W . t .' 2 + ... 2. 3 I would, however, like to have the. general dissatisfabtion I .1 with.our cable feception noted, at'the mbeting. ,The qUality of the pictures beceived is so inconsistent, that telâ‚¬ivision i [ 1.' *. r + I programmink cannot be enjoyed on a regulare basis.at.'Fawn , 9. Valleyl Inn 6 Chalets...Any improveinent in this situation would lic' , ., be â€žgreatly appfeciated. by our Owners and guests. 4 ' *4. ' ~ " ~ . . 4 â€¢ , Â¥,l e - r , t'$ I .1, . I. 1 . , I ./4 m i /2 Ji 4 'Â· e 7*t 1...,J , 'Sinderely i f , . p ./ AV 1 k - . 1 . h .. I 1 , /' < 1 'f . -CS~-- - )4 - 7 e â€ž ' h, . k I - - 40 i ./ I J i & C.----1-AL.'*2â‚¬21j -- .1 I'll I '14 /. , .1 9 E 7 4 /4- [ 1, . .. I , 2.,% 1 t. 1 / /.:1 4 t. 4- . Mrs.-Linda Eflen/hucker, dwneS 4 r ' . a . i . b Fawn.Valley Inn, &:ChaletsÂ· ' + .7,$ ... a " 4 1. U I ..:2760,Fall.River)'Road.~ :w .-ze.-=:--- -2 t'p,=2 0> A:'S * 5,-Â· .3 ,r .5-:*- e .'4 ~c - Â¢7~ -~.9---- "- t'"7' Past*.Office Box 220 , I ./ 1 k 1 1,4. , Estes Park, Co. '80517 1 4 363/586-2388 .k , 4 n . . r ... ta / I I .9 04 0 Â¥ U e , 1 - 4, , I . 9 , , . . R . . I: Y ' t , e . I I .... . '1 .., . 4 W 4 I . t. I ; .+ er 3-1 .1 4 . 2 I . : 1,11,; , r .t P 4 ..4. 1. I , . '1 I . . .1 . I. I 1 - . 1 2 . . . 7, 4 7 . ' : 1, I' d . I te / . 1 , ''I j. I j , ./ .. / . . % . I. I. I. I ... % .1. ... 4 . , / . # . 7. ' . I I '. t - 4 .1 1 ..2 f M I - 14 1 2 It / 4 . 39 .4 ' 3 *2 (1.,1 4 t?.:3 - 1.4,9.1~I~ ~ ~' r 11 . P. "* ., Â·,Lf: " 7 *1341, *'*'tr , 1..,Â·* I t. 1- I * . ,%, . 4 Â£ 2.4 I , 4 4 11.14 1 .P i.1 44Â·2 1 * 4 M , 4Â» 4 1 1 \ . 2 41 ESTES PARk 1 1 1 M 279-r- - 111 tia i ./ 1 F E * *4. .f .1 faN% 1-E I h; 1 rj i h ~ 1 1 1 1 1 1 1 1 1111 lili 112: 1. 14 1 1 1 1 111 % 1 ,Â·r-' *< /4. OIl 1 1 1 1 4 5 w TA . -' =4r.; 11 4 4~k 9 M ~ 1 f Tvp ~ IL : 1 ' ' 750 17*c 1 1 L 1 1 1 1 1 1 ,, 4 14049&7.)93Â»94#1 r-4 1 1 1 11 1 ; 1 al rvam,3~~ 4 -9001] 1 . 012,-m'NQ-'<41~069 11 1 j h 1 1< 111,/r IIi;1 1~Ji ' ~ ' ' ' 11 11 1 1 9 111 /400 1% 600 a , M 1 i./5 zi T 941 5 4/ L ~ ~ ~1, ~I /_1- 1 , ,Â·4 -4Â·4'}'~~Â·f- 1 k,,0~0. l tlt,Ili'IÂ· e - 5 1 / 5 011 J :1,1 1/1 1 lili v'' Z e 1 M w i ' 'i ' , a , it . 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JULY Ainr Â·1439 SUBSCRIBER GROWTH REQUIRED Â¥ TO MEET COST OF SERVICE !300 I . ,-t Â· Â· , ./t'' 04-4- 5.-+i.Â·i-1 1-411-1- Al-Â·1! ili-il 1 i.ll i- irkil [-li-ji Ii-_Â·tÂ·Â·i--:- PI--i li iii:... + 1 11-1 36+2a44# -t-4-il. -]4 4--f-t-4--1--- l-i--41- <!~il>1-1- Â·_4-341Â· 01-4 1-i] 1--Ff-~ty]Â·- -1131 4 4--3 1 i--~ 1>f-f- 1'9 A /1 Â· f t-/.t + 4 . -* ........ . ~f--341~6-11-l- 2 1.i--t--8-6stUekk rrequireid! toi *r;6Â·Gidaivi--3 -361-~Â· ~li-{-3--1~-1 j 3-i_itil- +444% tÂ·-i-4-1--l,,1--iÂ· 1 -2-- E-fi@Flf~E-Â·49-4-44Â·- -E----IlÂ·FÂ¢r 3-Q yiÂ·i dep:recidit.ion-NI5*iriatâ‚¬i 1 -4.--1.1- '- 1 391 1-2-1-234-1-Li 133.---Ut- .d: Culll 27 Iduh>LLUsion ful ICU'.Â» I--- \ 4.- -El-wt--.11Â·E_- -Ett-11-i :j,fpj--2 :1-1 4 Â·-4 1--7 -t--E-PEÂ«Fitf--12f-Etil-~t -. -_iniftÂ·j i i.- E.tiff-f--+11_433--iti~-hi- Â·--i=trnA--_.--4-- b .- 4+FrE.17 !000 -- - ---,4.--It-t-------1-4-4-- 9.-------f-+- .-, 1 1,1 Â·Â· 1<1 1 1 1 1 ! - t 1 1 1 1 1 1 1.1, 0, 1/ / 1~ '1 1 1 IfA 1 1 .W ' ! ~ ~| f .-1-1 11 , : 11 lilli Â«â‚¬7 1 1 k. 1 1 1 1 ..=24Â» t--:=*--Â»: Â«-Â«44-it tr-pr,9-2,ir 1-4----I .---,---, .-, --*-- -.7- - .- .-i- - 6.- 61%, ,~/,4,1 /r :11"51 . 4 %1*15__:111?1.,~,11*_z.:L::..,_.- -7-1-4-7 --r -+ 6*zincost*nieiÂ©kequited: to-payrs -- :. _ ur-, i . 1 1 Ili ..1 1 /...... A- 1 ...4 - - 1 1-_a-_1.-t- "1'v' -' '"'j e1;p.u99e 1.tic*Â§di.~9 --7..424- <,f_I.Â· _4_ _4--1_,CL--_ _1 ,+ x,t ,1 . 1- 1 ---+-In----- r --7- -9-9-,Jiriterdst ion current de]*: enl" 2,93-79* r,. e ./ 1Â· /2/ 33-64 FRFE &4=mi zzEEÂ«Nd-deb-thietirie~nt E-__RY-424% 5rl-Ii.~ ..real BM{~Â· 90 ,-- :,: _ _i_1-1_1 - _6_-FL -- liu L e LuL u uu .CS I f unds .*.1.- i -3*-fs-- t-:. Â·Â· -p.:Â·i--t..w-7,Â·.i,,rAMS ,~_I ---i-* -4, ty/" ~Tr-- -T:- -7-7--73 7L-I-e-7-2.~r-~1.-I.*At,Â·*ZEL-Â» -te,yr.. -,11 .1 ,- - 4~ _---;f't~ ~.t..Li~{~~3i~jif fibfri-75391Â£42- -5-=z-71=t t:_ -500- TU--2-2 --73_-2-1.--- ... 4 ./ ._._=:1319-CLALumers 1 + . I. ..... -. . - *HIS ILLUST* TI N tia J.UCUL 0 ; 4 + 4 - 4 -3-68~-tr--:as*of:2/29/84:-'- :-:- r ~~~~~9 ./:E. :I Ei i~~i: :i:i. to :add new custorners ,i: : L :/Y . .... -.. (b) 10--accumulation-or-return . .of operating losses .200 .::i :i:i :: (c) No Iadditional investment. : - . i . . . . . . for new- equipment-to--add - .. . 4 .. .. ..... ... .. . Â·Â·Â·:Â·Â·Â·:: I::2: servide r' -idÂ° -Â· ii.:. ,-i- ~ ji ~ 5'i Â·Â· : : : : : i.i ::i:(d) No Iincrease:in. op;erating Â·Â·Â·-Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·:*-: 2 062trdue-to-inflation -7 .000 . . . . ... 1 . . . + 1 1 . : 2-2- Ir ~ . . . . . .. . ./ 1 ~' ' '~ ' ~ |Period bf 'CSI :infus lon or eaD, a ..I 312: ta:tb : 1 ...., .. . . . t.. ........ .... 1 : ~ 11-Add Carriagei Hilld & Kbial Hei*hts (S135>CÂ·001 ... 1 ... I. . - (al No additional investment I ...680: cti@tdme:ks ad of 2/28/82 i ........ .Systemrownad by EPCTvt i t 11 7 --syÂ¢te# purchase*-by:-Â¢Sff($4403Â¢0~0'14+-#*ic,Whi#26;016): ..:Â·i 1 ...... ..... ..... ........... .. I ter:/immi#Met#lkile:&*Met#Â¥/8/23&9691#1{iliwifift#9{ilijigift:952/91/Miw 19_82_ 1983_ 19.84 - 19_85_ 19.86_ 1987 CABLE SYSTEMS, INC. ESTES PARK, COLORADO EXHIBIT I-B (5) di4.adi4 - .......... -+ 46 + r, 4 . * ti i k; T *.+ + "t iÂ· . ~ ~~~ ~* ~~~~ T I ./ t t~; f~i1 4:'* 0*' HT Zir. .'' Â® H T: 4 'Ti- .... .-... ................ i; t.. 1. Power PAC . 4 c/o American Public Power Association 2301 M Street, N.W. Washington, D.C. 20037 CONSENT FORM AUTHORIZING PowerPAC COMMUNICATIONS WITH MUNICIPAL UTILITY EMPLOYEES -Â£ 0 0 The~# 4" 2<-1Z>fipÂ«(- permits PowerPAC to contact its board members and ~dinpensated employees who have policymaking or supervisory responsibilities. PowerPAC (Public Ownership of Electric Resources Political Action Committee) is affiliated with the American Public Power Association. .. acknowledges that . I it will not allow any other'trade as'sociation political action committee which contributes to Federal candidates to solicit its board or qualified employees during the time this consent form is in effect. 1986 Signature: - 1987 Signautre: 1988 Signature: 1989 Signature: 1990 Signature: i TITLE: DATE: Names, Titles and Addresses of Persons Authorized to be Contacted: i j j 7,1-4 0,4 - 4 4 VE - 3 : _75 E il. 0/6 - / \te~ - / 1/ (use another sheet for additional names) Resolution Whereas, ordinance number , granted a franchise to Cable Systems, Inc. on or about and; Whereas, section provided all sale and transfers must be approved by resolution of the town board, and; Whereas, it is the desire of Cable Systems, Inc. to pledge the franchise as a security interest to obtain an improved credit position, and; Whereas, Society National Bank will contract with Cable Systems, Inc. to allow for the borrowing of a loan pursuant to a revolving credit/term loan facility from Society National Bank to Cable Systems, Inc. Whereas, the loan from Society National Bank to Cable Systems, Inc. will be secured by various security instruments, security deeds, liens and encumbrances on the tangible and intangible property of Cable Systems, Inc. including the Estes Park, Colorado franchise, and the loan may be refinanced from time to time and additional amounts may be borrowed for use in operation of the cable systems by which the borrowing may be secured by such security interests, security deeds, liens, encumbrances, and pledges; Now, therefore, be it resolved, that; 1. The granting of the security interest, security deeds, liens, or encumberances, on all or any part of the assets of Cable Systems, Inc., including the franchise, to secure the loan Society National Bank to Cable Systems, Inc. is hereby consented to and approved. 2. In the event of repossession, foreclosure or other action by the holder having a security interest, security deeds, lien, or encumbrance, the possession, operation and ownership of the assets of Cable Systems, Inc. including the franchise and all rights and privileges thereunder, by the holder, or reciever, nominee or representative on behalf thereof, of any security interests, security deeds, liens, or encumbrances as secured party, mortgagee in possession, grantee for b e. A.t .p , s Fiftâ‚¬ 6 y security or otherwise, is hereby considered to sar approved. i#_ 3. In the event of repossession, foreclosure or other action by the holder having a security interest, security deeds, liens, or encumbrances, the sale conveyance, transfer or assignment to a qualified operator by said holder of all or any part of Cable Systems, Inc. including the franchise and any and all rights thereunder, is hereby consented to and approved. 4. The resolution granting the franchise was duly and legally adopted, the franchise was duly and validly granted, and, as of the date hereof, the franchise has been substantially complied with, and is in full force and effect. Past and approved this day of , 1986 Signed and Attested. 9 413 6*6 94?60 4.-j -1.u-,-10 1 - 1 )44 +1. Abu -14.fil<460 694-Jhbit - 9Lf LA v~Ene Sm / 76/ 4426.-1-4Â¥WÂ«29/i) 644 741 u -2-,3 ~ U--0.-~ 74*4Â·1<J 2-~A,ek J f s:**pÂ»_. d2Â«41 - 991*wa 0 Â»S Uu 0.9U- 94iI-*U- fev - (419,68*v n 1 #4 6 ,/,1Â£- f j'..i4- 0. )~Lou 0 0 (Ek e . C j 1~ 90- GloUL_ 9 3 1, '' KODAK FILM