AN ORDINANCE GRANTING TO EARL A HURST, HIS SUCCESSORS AND ASSIGNS, HEREINAFTER REFERRED TO AS “GRANTEE,” FOR A TERM OF FIFTEEN YEARS, THE RIGHT, AUTHORITY, POWER AND FRANCHISE TO ESTABLISH, CONSTRUCT, ACQUIRE, MAINTAIN, AND OPERATE A COMMUNITY ANTENNA TELEVISION SYSTEM AT THE COUNCIL GROVE LAKE PARK, TO RENDER, FURNISH, SELL, AND DISTRIBUTE TELEVISION, RADIO, AND ENTERTAINMENT PROGRAMS AT THE COUNCIL GROVE LAKE PARK AND ENVIRONS THEREOF, AND TO USE AND OCCUPY THE LAKE PARK PROPERTY AS MAY BE NECESSARY TO CONSTRUCT SAID SYSTEM.

Section 1. That there is hereby granted to Earl A Hurst for the full term of 15 years from the date hereof, the non-exclusive right, power, authority, and franchise to establish, construct, acquire, maintain, and operate a community antenna television system at the Council Grove Lake Park, herein called the Lake Park; to render, furnish, sell and distribute television signals and programs and entertainment for all purposes to the inhabitants of the Lake Park and its environs; and to use and occupy the Lake Park property as the same now exist or may hereafter exist, for the grantee’s community television system, including the right to enter and construct, erect, locate, relocate, repair and rebuild in, on, under, along, over and across the Lake Park property all towers, poles, cables, amplifiers, conduits and other facilities owned, leased or otherwise used by the grantee for the furnishing of a community antenna television service at the Lake Park and environs thereof during the continuance of the franchise hereby granted. The grantee shall provide service to any subscriber desiring the same within the franchise boundaries at the Council Grove Lake Park.

Section 2(a). The grantee’s transmission and distribution system poles, wires, and appurtenances shall be located, erected and maintained so as not to endanger or interfere with any improvements the city may deem proper to make or to hinder unnecessarily or obstruct the public use of the Lake Park property. The grantee’s transmission and distribution system shall in no way interfere with other public utilities now in existence and in operation, nor will it interfere with the continued operations of the public utilities.

Section 2(b). The grantee shall have the right to set, erect, install and maintain his or her own poles for the mounting of his or her amplifiers, cable and appurtenances; provided that the grantee shall keep and maintain a complete set of maps showing the location of all such poles and that the city shall be provided with a copy of this map; and all other such erection, construction, etc. shall be approved by the city before any construction. The map to be kept up-to-date and accurate at all times, such updating to be the responsibility of the grantee; provided further, that grantee shall make every reasonable available effort to utilize existing poles where possible.

Section 2(c). In the maintenance and operation of his or her transmission and distribution system at the Lake Park and in the course of any new construction or addition to his or her facilities, the grantee shall proceed so as to cause the last possible inconvenience to the general public. All excavations shall be properly guarded and protected and shall be replaced and the surface restored in a good condition promptly after completion of such work. The grantee shall at all times comply with any and all rules and regulations which the city has made or makes.

Section 3. The grantee shall have the authority to promulgate such rules, regulations, terms and conditions for his or her business as shall be reasonably necessary to enable the grantee to exercise the rights and perform the services under this franchise, and to assure uninterrupted service to each and all customers. The grantee shall have the right and power to fix, charge, collect and receive reasonable fees for the community antenna television services, provided however, grantee shall file with the city a schedule of his or her proposed rate and charges for his or her proposed services prior to commencement of activities under this ordinance.

Section 4. The city reserves the right to reasonable regulation of the erection, construction or installation of any facilities by the grantee and to reasonably designate where such facilities are to be placed.

Section 5. In the event that the city shall elect to change or alter the Lake Park streets any time during the existence of this franchise, the grantee shall, upon reasonable notice given by the city, remove, relay and/or relocate any system installation affected by such change at grantee’s expense.

Section 6. Grantee shall, upon the request of any person holding a building or moving permit, temporarily raise or lower his or her wires to permit the moving of buildings and other structures. The actual and necessary expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and the grantee shall be given not less than 48 hours notice to arrange for such temporary changes.

Section 7. Grantee, with the prior approval of the city, shall have the authority to trim trees so as to prevent the branches of such trees from coming in contact with the wires, cables and appurtenances of the grantee, all trimming to be done under the supervision and direction of the city and by and at the expense of the grantee.

Section 8. The grantee shall, at all times during the existence of this franchise, be subject to all reasonable regulations as the city shall hereafter by ordinance or resolution provide.

Section 9. The grantee shall pay to the city, on or before January 20 of each year, a three percent franchise fee based on gross annual subscriber revenues received for cable television, including both basic service, extended services and pay services at the Lake Park for the preceding 12 months. Gross annual subscribed revenue shall not include installation and similar charges.

The grantee shall make his or her full books of accounting and records available for inspection by an authorized agent of the city.

No other fee, charge or consideration shall be imposed. At the time of each payment due hereunder, the grantee shall provide to the city an annual summary report showing gross annual subscriber revenues received during the preceding year.

Section 10. It is expressly understood by and between the grantee and the city that grantee shall defend the city for any claim, demand or suit whatsoever resulting from the alleged negligence on the part of the grantee in the construction, operation or maintenance of his or her system and shall hold the city harmless for all loss sustained by the city on account of any suit, judgment, execution, claim or demand whatsoever resulting from negligence on the part of the grantee in the construction, operation or maintenance of his or her system. For this purpose the grantee shall maintain bodily injury liability insurance in an amount not less than $300,000 for any one person and $500,000 for any one accident of injury and property damage liability in any amount not less than $50,000. Upon obtaining such insurance, the grantee shall submit to the city, certificates from all companies insuring the grantee is properly insured for all liabilities as required above and that no such insurance will be canceled or changed except after 30 days notice to the city. The grantee shall also be responsible for any damages caused to city property.

Section 11. The city reserves the right to terminate this agreement and rescind all rights and authorities herein granted for just cause.

Section 12. All ordinances and parts of ordinances in conflict herewith are hereby repealed as of the effective date of this ordinance.

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

Section 14. Grantee agrees to answer all service calls within 24 hours of receiving notice that service is needed. If any act not in the grantee’s control should prevent the grantee from providing service within 24 hours, the grantee agrees to make the service call as timely as possible.

Section 15. If any portion of this ordinance shall be found to be at variance with the rules and regulations of the Federal Communications Commission, as presently constituted, or hereafter enacted, this ordinance shall be modified so as to conform with the requirement of the Federal Communications Commission as they pertain to the regulation of a cable television system; and the grantee shall in tum be required to operate under this ordinance as hereafter constituted as it may be redrawn to conform with applicable rules and regulations of the Federal Communications Commission.

Section 16. The grantee shall assume all franchise costs including the costs of publication of this franchise ordinance as such publication is required by law.

Section 17. In the event of failure of the grantee to complete construction of the system within one year from the enactment of this ordinance, the city shall have the right, on reasonable notice to the grantee, to declare this ordinance and rights of franchise granted hereunder forfeited.

Section 18. This franchise may not be assigned or transferred by the grantee without the prior written consent of the city. The consent shall not be unreasonably withheld.

(6-17-87)