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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 -2- 1 j :; 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 -3- 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 ZM 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 M6'2 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 /-) e � 1 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)