CC RESOLUTION 2425I _i
RESOLUTION NO. 2425
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EL SEGUNDO, CALIFORNIA, AUTHORIZING TESTING
AND CHARGES FOR TWO -WAY CABLE SERVICE.
WHEREAS, Theta Cable of California holds a franchise
issued pursuant to Ordinance No. 754, entitled:
"AN ORDINANCE OF THE CITY OF EL SEGUNDO,
CALIFORNIA, GRANTING TO THETA CABLE OF
CALIFORNIA, A COMMUNITY ANTENNA TELEVI-
SION FRANCHISE IN THE CITY OF EL SEGUNDO. ",
which said ordinance was adopted on January 25, 1971, to construct
and operate a Community Antenna Television System within the said
city; and
WHEREAS, Theta Cable of California is presently installing
a Community Antenna Television System within the said city pursuant
to the terms and conditions of said franchise; and
WHEREAS, the said Community Antenna Television System
being installed by Theta Cable of California has the capability
of two -way transmission which will allow transmissions between
the studio and the subscriber and between the subscriber and the
studio; and
WHEREAS, Theta Cable of California desires to test its
two -way transmission system in regard to a technical evaluation
of such a system, the marketability of the various services to
subscribers, and a rate structure for the services; and
WHEREAS, the City Council of the City of El Segundo is
willing to consent to a temporary feasibility and marketability
test of the two -way transmission system; and
WHEREAS, the use of the franchise properties for trans-
mission of signals other than television and radio reception and
a rate structure for two -way services is not authorized or provided
for by the franchise granted pursuant to Ordinance No. 754;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
EL SEGUNDO, CALIFORNIA, DOES RESOLVE AS FOLLOWS:
SECTION 1. That the City Council of the City of
E1 Segundo, California, hereby grants temporary permission to
Theta Cable of California to maintain and operate its franchise
properties for the collection, origination, transmission, amplifica-
tion, and distribution of electrical or radiant energy for two -way
services in addition to radio and television services until
March 31, 1974.
SECTION 2. That Theta Cable of California is hereby
granted authority on and after January 1, 1973 until March 31, 1974
to conduct a marketing survey of a two -way system. This marketing
survey shall include the solicitation of subscribers to participate
and to utilize the various services offered, and to establish and
modify, as needed, the charges for the respective services.
SECTION 3. That the City Council shall have the power
and authority to adopt rules and regulations governing the services
offered by Theta Cable of California pursuant to this resolution,
and Theta Cable of California by accepting this temporary permit
agrees to be bound by and comply with each and every such rule
or regulation, provided that such rules and regulations are not
in conflict with rules and regulations of the Federal Communica-
tions Commission (FCC) or of other regulatory agencies or
governmental bodies having superior jurisdiction.
SECTION 4. That during the course of the tests con-
templated herein, Theta Cable of California shall observe the
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rights of subscribers to privacy of their persons. Theta Cable
of California may release information concerning the number of
subscribers viewing particular television channels, the number
of subscribers expressing preferences by poll or the number of
subscribers purchasing any of the services contemplated herein,
at any given time or times, and may keep such records of viewing
or purchasing of services by individual subscribers as are
necessary for billing subscribers for such services. Theta Cable
of California shall not tabulate any test results in a manner
that would reveal the economic or commercial product preferences
or opinions of individual subscribers or their families. Theta
Cable of California shall not maintain or tabulate any data on
the political, religious, moral or social preferences or opinions
of individual subscribers or their families. Theta Cable of
California shall not market to advertising, marketing or bulk
mailing organizations the names and addresses of subscribers.
SECTION 5. That the City Council may at any time
prior to March 31, 1974 suspend or revoke the permission granted
by this resolution if it finds that such action is necessary
to protect the public health, peace, safety or welfare, provided,
however, the City Council shall not revoke the permission granted
by this resolution, nor rescind nor repeal this resolution with-
out first giving Theta Cable of California ten days' written
notice of the reason that the City Council considers such a
revocation, rescission or repeal necessary to protect the public
peace, health, safety or welfare. The City Council shall, however,
within such ten day period, if Theta Cable of California requests
a hearing before the City Council, grant such a hearing within
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twenty -five days of the date of such request. At any such hearing
evidence shall be presented to establish to the satisfaction of
the City Council the necessity for revocation, rescission or
repeal, and Theta Cable of California shall be given an opportunity
to cross examine all witnesses testifying at such hearing. Theta
Cable of California shall thereafter at that hearing or at a
continued hearing (if a continuance is requested by Theta Cable
of California) be given an opportunity to present evidence to
establish that such revocation, rescission or repeal is not
necessary to protect the public peace, health, safety or welfare.
The City Council shall thereupon, after hearing all
of the evidence, determine whether or not the permission granted
by this resolution should be revoked or the resolution should
be rescinded or repealed, and the City Council's determination
thereon shall be final. If the City Council determines that the
permission granted by this resolution should be revoked or that
this resolution should be rescinded or repealed, it shall order
the revocation, rescission or repeal and Theta Cable of California
shall thereupon discontinue any operation permitted by this
resolution except as otherwise permitted by its franchise. Theta
Cable of California shall suspend and discontinue all operations
not permitted by its franchise during the time that the City
Council suspends the permission granted by this resolution.
SECTION 6. That the purpose of this resolution is to
permit Theta Cable of California to experiment and determine if
the services contemplated are technologically, economically and
financially feasible and Theta Cable of California accepts this
temporary permit with the express understanding that the adoption
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of this resolution and the tests performed pursuant to this
resolution shall expire on March 31, 1974, and thereafter Theta
Cable of California shall have no right, except pursuant to
further Council approval to continue the services contemplated
in this resolution, and City shall have no right to require the
continuance of such services by reason of the adoption of this
resolution, by reason of the acceptance of this resolution by
Theta Cable of California, or by reason of the experiment and
services installed and performed by Theta Cable of California,
and that any approval on or after April 1, 1974 shall be considered
on the basis of a new application, provided, however, that nothing
contained in this resolution, nor experiments nor tests undertaken
by Theta Cable of California pursuant to this resolution, shall
adversely affect the franchise rights which Theta Cable of
California holds or accrues pursuant to Ordinance No. 754.
SECTION 7. That in addition to any business license
otherwise required by the laws of the City of E1 Segundo, Theta
Cable of California agrees to pay the City five percent of its
gross receipts for all services performed pursuant to this resolu-
tion, whether such receipts be from subscribers, advertisers, or
other customers.
SECTION 8. That nothing contained in this resolution
shall relieve Theta Cable of California of the requirement to
provide the services required of it under said franchise for the
fees set forth therein.
SECTION 9. That Theta Cable of California shall at
all times maintain in full force and effect a policy of insurance
in such form as the City Attorney may require, executed by an
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insurance company authorized to write the required insurance and
approved by the Insurance Commission of the State of California
insuring the payment of any sums which Theta Cable of California,
or the City, its officers, boards, commissioners, agents and
employees may become obligated to pay by reason of any liability
imposed upon them by law for damages because of bodily injury or
death, or injury to or destruction of property that may result
to any person or property arising out of the construction,
operation or maintenance of any facilities pursuant to this
resolution. The sums, payment of which shall be so insured
shall be not less than:
$200,000;
(a) for bodily injury to or death of one person,
(b) for bodily injury to or death of more than one
person in any one accident, $500,000;
(c) for loss or damage to property in any one
accident, $50,000.
Such policy of insurance shall be filed with the City Clerk.
The requirements of this section may be met by the
same insurance policy that is provided pursuant to Theta Cable
of California's franchise if such policy is suitably endorsed to
cover the activities contemplated under this resolution.
SECTION 10. That the City Council declares that the
City has an interest in the results of the tests contemplated
herein and that such information could be helpful to the Council
in planning for future needs and requirements of the City. Theta
Cable of California agrees to report to the City quarterly during
the course of the tests and one quarter thereafter the results
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of such tests to the extent that Theta Cable of California does
not consider such information to be proprietary to itself or other
firms participating in the tests. Theta Cable of California also
agrees to reasonably amplify such reports at the request of the
Council, to provide more information or greater detail, to the
extent that Theta does not consider such requested information to
be proprietary to itself or other firms participating in the tests.
SECTION 11. That the authority granted Theta Cable of
California pursuant to this resolution shall expire on March 31,
1974.
SECTION 12. That this resolution shall remain
inoperative until Theta Cable of California has filed with the
City Clerk its written acceptance of this resolution and its agree-
ment to be bound by and comply with all of the terms, conditions
and limitations contained in this resolution and shall become
operative upon receipt of such written acceptance.
SECTION 13. That the City Clerk shall certify to the
passage and adoption of this resolution; shall enter the same in
the book of original resolutions of said City; and shall make a
minute of the passage and adoption thereof in the records of the
proceedings of the City Council of said City, in the minutes of
the meeting at which the same is passed and adopted.
PASSED, APPROVED AND ADOPTED this 7th day of February
1972.
ornia.
ATTEST:
✓ll" �1�L -t�-c�
City Clerk
(SEAL) -7-
STATE OF CALIFORNIA, )
COUNTY OF LOS ANGELES, ) SS
CITY OF EL SEGUNDO. )
I, JANE D. HOUGH, , City Clerk of the
City of El Segundo, California, DO HEREBY CERTIFY that the
whole number of members of the City Council of the said City
is five; that the foregoing Resolution, being Resolution No. 2425
was duly passed and adopted by the said City Council, approved
and signed by the Mayor of said City, and attested by the City
Clerk of said City, all at a regular meeting of the said Council
held on the 7th day of February , 197 2
and that the same was so passed and adopted by the following vote:
AYES: Councilmen Balmer, McGill, Morgan, Nagel,
and Mayor Stephens;
NOES: Councilmen None
ABSENT: Councilmen None.
WITNESS my hand and the official seal of said City
this 1 0th day of February , 1972
/ZCit�y=Cffrkof e City o egun o
California
(SEAL)