HomeMy WebLinkAbout085 - 09/19/1978 - SUBMITTING TO THE ELECTORS OF THE CITY OF FORT COLLINS THE QUESTION OF GRANTING A FRANCHISE BY THE C ORDINANCE NO 85 , 1978
BEING AN ORDINANCE_ SUBMITTING TO THE ELECTORS OF THE
CITY OF FORT COLLINS, LARIMER COUNTY, COLORADO, THE
QUESTION OF GRANTING A FRANCHISE BY THE CITY OF FORT
COLLINS TO THE WORLD COMPANY, ITS SUCCESSORS AND
ASSIGNS, TO CONSTRUCT, PURCHASE, ACQUIRE, LOCATEE, MAINTAIN,
OPERATE AND EXTEND INTO, WITHIN AND THROUGH THE CITY OF
FORT COLLINS, PLANTS, WORKS, SYSTEMS AND FACILITIES FOR
A CABLE COMMUNICATIONS SYSTEM BY MEANS OF CABLE OR OTHER-
WISE, OVER, UNDER, ALONG AND ACROSS ALL STREETS, ALLEYS,
VIADUCTS, BRIDGES, ROADS, LANES, PUBLIC WAYS, AND OTHER
PUBLIC PLACES IN THE CITY OF FORT COLLINS; TO FURNISH
AND DISTRIBUTE CABLE COMMUNICATION SIGNALS AND SERVICES
TO THE CITY OF FORT COLLINS AND THE INHABITANTS THEREOF;
AND FIXING THE TERMS AND CONDITIONS THEREOF, AND PROVIDING
FOR THE CALLING AND HOLDING OF A SPECIAL ELECTION UPON
SAID QUESTION, THE DETERMINATION OF THE RESULT THEREOF,
AND FOR THE EXECUTION AND DELIVERY OF SAID FRANCHISE
ACCORDING TO ITS PROPOSED TERMS, IF THE RESULT OF SUCH
VOTE OF THE ELECTORS AT SUCH ELECTION SHALL HAVE BEEN
DETERMINED TO HAVE BEEN AFFIRMATIVE FOR THE GRANT OF
SAID FRANCHISE
WHEREAS, the World Company has filed its application with the
City of Fort Collins for the granting to it by the City of Fort
Collins of a franchise in terms as hereinafter set forth; and
WHEREAS, the World Company, as applicant for said franchise,
has made a deposit with the Director of Finance of the City of
Fort Collins in the sum of Three Thousand Five Hundred Dollars
($3,500 00) for the expense of the submission of the question of
the granting of such franchise to the electors; and
WHEREAS, the Director of Finance of the City of Fort Collins
has determined that the expense of such submission to the electors
is in the amount of Three Thousand Five Hundred Dollars ($3 ,500 00)
as deposited by the World Company, and
WHEREAS, Section 1 of Article 13 of the Charter of the City
of Fort Collins provides that no franchise shall be granted except
upon the vote of the taxpaying electors, and
WHEREAS, said City Charter requires that the Council shall
provide by ordinance for the manner of holding City elections and
such additional requirements in respect thereto as may be necessary
to accomplish the intent of such Charter
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS
Section 1. That a special election be, and the same hereby
is, called to be held in the several precincts of the City of Fort
Collins, Colorado, on Tuesday, the 7th day of November, A D. 1978,
and at said election there shall be and hereby is submitted to
a vote of the electors of the City of Fort Collins the question of
granting the franchise hereinafter set forth to the World Company,
its successors and assigns
Section 2 Said franchise, by the City of Fort Collins to
the World Company, its successors and assigns, is as follows
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Section 3 That said franchise election shall be held in
conjunction with the Larimer County, State of Colorado, general
election, at such polls as are regularly established and announced
for such County elections.
Section 4. The polls shall be open at the hour of 7-00 A M
and shall remain open continuously until and be closed at 7 00 P M.
of said date.
Section 5 That said election shall be held and conducted
as nearly as may be in the manner prescribed by law in the case
of elections for municipal officers Each elector offering to
vote in said election must be a qualified elector of the City of
Fort Collins and must be registered in accordance with the provisions
of the Charter The last day for a City resident to register for
this election shall be October 6, 1978.
Section 6. The use of automatic voting machines to record
the votes at said elections is hereby authorized.
Section 7 Absentee voting shall be permitted in accordance
with the provisions of applicable state laws
Section 8. That the official ballot on the automatic voting
machines (and on the written paper ballots required) shall show
the nature of the question to be voted as set forth below, and
the voting mahcines and paper ballots used at said election shall
carry the following designation, which shall be the submission
clause, and each elector voting at said election and desirous of
voting for or against the following question shall indicate his
choice by depressing the appropriate counter of the voting machine
which indicates the word "FOR" or the word "AGAINST° , or by
appropriate marking upon paper ballots where used
"Shall the City of Fort Collins grant to the
World Company, its successors and assigns, a
franchise to provide cable communications
services within the City of Fort Collins
FOR THE FRANCHISE AGAINST THE FRANCHISE"
Section 9. That no vote, either for or against the question
so submitted, shall received by the judge unless the person offering
the same shall be a duly qualified voter in the precinct in which
he offers to vote and, in addition thereto, said person is an
elector of the City of Fort Collins as defined in the election
laws applicable in the premises.
Section 10. The City Clerk under the direction of the Board
of Elections shall cause to be prepared the ballots to be used
at the aforesaid election as provided in Section 7, Article 16,
of the City Charter, and the City Clerk shall publish notice and
call said special election as herein authorized in accordance with
Section 5, Article 16 of the City Charter. Said City Clerk, under
the direction of the Board of Elections, shall cause to be arranged
the polling places, matters of registration and all other details
necessary for the election
Section 11. That the votes cast at said election on the
question so submitted shall be canvassed by the Board of Elections,
tallied, and the return thereof made and the result thereof declared
substantially in the same manner as is provided by law of the
canvass, tally, return and declaration of the results of votes at
election for officers of the City of Fort Collins If the majority
of all the votes cast at said election shall be for the grant of
said franchise to the World Company, its successors and assigns,
then, upon the filing by said company of its acceptance of such
franchise with the City of Fort Collins, the same shall be in full
force and effect
Introduced, considered favorably on first reading and ordered
published this 5th day of September , A.D. 1978, and to
be presented for final passage on the 19th day of September,
A.D 1978.
Mayor
ATTEST
City C erk
Passed and adopted on final reading this 19th day of September,
A.D. 1978
Yo (Assistant)
ATTEST
C y Clerk
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FRANCHISE AGREEMENT
THIS AGREEMENT, made this 5th day of September, 1978, by
and between THE CITY OF FORT COLLINS, COLORADO, a municipal
corporation organized under and existing by virtue of the laws
of the State of Colorado, hereinafter referred to as "City" , and
THE WORLD COMPANY of Lawrence, Kansas, hereinafter referred to
as "Franchisee"
WITNESSETH_
WHEREAS, in response to a request for proposals issued by
the City of Fort Collins, Franchisee did submit to the City of
Fort Collins a franchise proposal for a cable communications
system for the City of Fort Collins; and
WHEREAS, on August 15, 1978, the Council of the City of
Fort Collins did, after having first duly published public notice
of its intentions, convene a public hearing to examine the proposal
submitted by Franchisee as well as proposals submitted by other
franchise applicants; and
WHEREAS, during the course of said public hearing, the Council
of the City of Fort Collins did examine in detail all of the
qualifications of the Franchisee including, but not limited to,
the following: the World Company's financial capabilities,
corporate structure, experience, their proposed construction
arrangements andlinstallation plans, construction time table,
complaint procedures, and character and integrity; and
WHEREAS, that the aforementioned public hearing in all
respects was conducted in full compliance with due process require-
ments as required by the Federal Communications Commission, and
WHEREAS, in the considered 3udgment and opinion of the Council
of the City of Fort Collins the World Company of Lawrence, Kansas,
is best able to meet the needs and requirements of the citizens
of the City of Fort Collins in establishing, operating and
managing a cable communications system for the use and benefit of
the residents of the City of Fort Collins.
WHEREFORE, in consideration of the recitations above expressed
and of the obligations and covenants herein contained, it as
agreed by and between the parties hereto as follows-
Section 1 Grant of Authority There as hereby granted by
the City of Fort Collins to the World Company the franchise right,
privilege and authority to construct, purchase, acquire, locate,
maintain, and extend into, within and through the City of Fort
Collins, plants, works, systems and facilities for a cable
communication system by means of cable or otherwise, over, under,
along and across all streets, alleys, viaducts, canals, bridges,
roads, lanes, public ways, and other public places in the City of
Fort Collins for the purpose of furnishing and distributing cable
communication signals and services to the City of Fort Collins
and the inhabitants thereof, all within the territory of the
City of Fort Collins or any territory hereinafter included in the
boundaries of the City of Fort Collins
Section 2. Manner of Use - Repair. The Franchisee is
further granted the right, privilege and authority to excavate
in, occupy and use any and all streets, alleys, viaducts, bridges,
roads, lanes, public ways and other public places under the
supervision of properly constituted authority for the purpose of
constructing and maintaining a cable communications system within
and through the City, provided, however, that the Franchisee shall
so locate its plant, works, transmission and distribution
structures, equipment, conduits and cables within said City as
to cause minimum interference with the proper use of streets,
alleys and other public ways and places and to cause minimum
interference with the rights or reasonable convenience of property
owners whose property adjoins any of the said streets, alleys or
other public ways and places. Should it be necessary for the
Franchisee, in exercising its rights in performing its duties
hereunder to interfere with any sidewalk, graveled or paved streets,
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roads or alleys, or any other public or private improvement, the
Franchisee shall repair in a workmanlike manner such sidewalk,
graveled or paved street, road, alley, or other improvement after
the installation of its equipment or other structures in conformity
with City standards and specifications The Franchisee shall use
due care not to interfere with or damage any water mains, sewers
or other structures in said streets, alleys or other public places.
Section 3. City Held Harmless The Franchisee shall so
maintain its structures, appartus, conduits, and other equipment
as to afford all reasonable protection against injury or damage
to persons or property therefrom, and the Franchisee shall save
the City harmless from all liability or damage and all reasonable
expenses necessarily accruing against the City arising out of
the negligent exercise by the Franchisee of the rights and
privileges hereby granted, provided, that the Franchisee shall
have had notice of the pendency of any action against the City
arising out of such exercise by the Franchisee of its rights
and privileges and be permitted at its own expense to appear and
defend or assist in the defense of the same.
Section 4 Services to be Provided In consideration of
the grant of this franchise, Franchisee shall provide, at a minimum
those services specified in Franchisee's proposal, a true copy of
which is attached hereto as Exhibit A and which by this reference
is incorporated herein as though fully set forth.
Section 5. Term of Franchise The grant of authority
contained in this franchise agreement shall be in effect for
a period of fifteen (15) years commencing with the date this
franchise is approved by the electors of the City of Fort Collins
and terminating fourteen (14) years and three hundred sixty four
0 64) days thereafter.
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Section 6 Renewal This franchise shall not be subject
to renewal before one (1) year prior to its expiration, which
renewal shall be subject to all provisions relating to the
original grant of this franchise.
Section 7. Franchise Fee. The Franchisee shall pay to
the City of Fort Collins annually an amount equal to three percent
(38) of the Franchisee's gross subscriber revenues per year from
cable television operation both within and without the territorial
limits of the City of Fort Collins
Section 8 Speedy Construction Throughout Franchise Area
The Franchisee shall make cable communication services available
throughout the territorial limits of the City of Fort Collins in
a rapid and expeditious manner, provided, however, that an
equitable line extension policy may be established for those areas
of the City having a dwelling unit density of less than fifty
(50) units per strand mile. Headend and office facilities shall be
constructed and in operation within one (1) year of the granting
of this franchise
Section 9 Local Access The cable system constructed
pursuant to this franchise shall have available on one or more
channels, public access, educational access, local government
access and leased access. Until such time as there is a demand
for each channel full-time for its designated use, public, educational,
governmental and leased access channels programming may be combined
on one or more cable channels. To the extent time is available
therefor, access channels may also be used for other broadcast
and non-broadcast services.
Section 10 Right of City to Purchase Cable System. Upon
expiration of the term of this franchise or upon other termination
thereof, the City may upon the payment therefor of its fair
valuation, purchase and take over the property and plant of the
franchisee in whole or in part.
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Section 11 Initial Subscriber Fees Those subscriber fees
set forth in Franchisee' s proposal attached hereto as Exhibit A
are hereby approved, said fees having been fully considered by
the Council of the City of Fort Collins at the public hearing on
Franchisee's proposal
Section 12 Subscriber Protection Clauses Franchisee and
the City of Fort Collins agree
(a) That the complaint procedure specified in
Franchisee's proposal attached hereto as
Exhibit A are satisfactory
(b) That the Franchisee shall maintain a local
business office within the territorial limits
of the City of Fort Collins,
(c) That the City Manager of the City of Fort
Collins be designated as the City of Fort
Collins ' supervisory agent for the purposes
of enforcement of this agreement and for
resolution of subscriber complaints;
(d) That the Franchisee shall provide all sub-
scribers at the time of their initial sub-
scription with detailed information and
instructions concerning complaint procedures
Section 13 Technical Standards. The Franchisee will meet
or exceed all Federal Communications Commission technical standards
in effect at the time of the granting of this franchise and shall,
in addition, insofar as possible adopt all modifications in Federal
Communications Commission technical standards within one (1) year
of their adoption by the Federal Communications Commission.
Section 14. Insurance. Franchisee shall be required to
maintain insurance in such forms and in such companies as shall
be approved by the City, such approval not to be unreasonably
withheld, to protect the City and the Franchisee from and against
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any and all claims, injury or damage to persons or property, both
real and personal, caused by construction, erection, operation
or maintenance of any aspect of the system authorized pursuant to
this agreement
Section 15 Performance-Bond. Concurrent with its acceptance
of this franchise, Franchisee shall file with the City Clerk of
the City of Fort Collins and at all tames thereafter, maintain
in full force and effect a corporate surety bond in the amount
of Fifty Thousand Dollars ($50,000 00) , renewable annually and
conditioned upon the faithful performance of the terms and conditions
of this franchise agreement and Franchisee's proposal attached
hereto as Exhibit A. The City Counicl may, in its sole discretion,
waive said bond or reduce the required amount thereof after five
(5) years of operation of the system authorized by this franchise
agreement
Section 16. Performance Review. Franchisee shall upgrade its
facilities, equipment and service so that its system is, within
reason, as advanced as the current state of economically feasible
production technology will allow In furtherance of this goal,
i on the fifth, tenth, and fifteenth anniversary of the granting of
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this franchise, the City Council shall conduct public hearing to
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examine the performance of the Franchisee and to consider recommend-
ations for changes in its facilities, equipment and services
Section 11 Rules and Regulations. The Franchisee from time
to time may promulgate such rules, regulations, terms and conditions
governing the conduct of its business as shall be necessary to
insure a continuous and uninterrupted service to each and all of
its subscribers and proper payment therefor, provided that the
Franchisee shall keep on tale in its offices in the City, available
to the public, copies of its rate schedules, rules and regulations,
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and service connection and extension policies currently in effect
as well as its rules and regulations concerning public use of
public access channels.
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Section 17. Police Power Reserved The tight is hereby
reserved to the City to adopt, from time to time, in addition to
the provisions herein contained, such regulations as may be deemed
necessary in the exercise of its police power, provided that such
regulations shall be reasonable and not destructive of the rights
herein granted, and not in conflict with the laws of the State
of Colorado, or with orders of other authorities having jurisdiction
in the premises
Section 18 Non-Exclusive. The right to use and occupy the
streets, alleys and other public places for the purposes herein
stated shall not be exclusive.
Section 19 Forfeiture In the event of the failure of the
Franchisee to perform and carry out any of the stipulations and
agreements herein set forth in any substantial particular, and
with respect to which redress is not otherwise herein provided,
the City acting by and through its Mayor and Council may, after
hearing, determine such substantial failure, and, thereupon,
after notice given the Franchisee of such determination, the
Franchisee shall have sax (6) months time in which to remedy the
conditions respecting which said finding shall have been made
After the expiration of such six months' period and failure to
correct such conditions, the Mayor and Council may declare this
franchise forfeited, and thereupon the Franchisee shall have no
further right or authority hereunder
Section 20 Restriction on Assignment. This franchise shall
not be leased, assigned or otherwise alienated without the express
consent of the City, agreed to by ordinance or resolution of the
City Council of the City, and any assignment or sale of this
franchise to any corporation, without the consent of the City
as aforesaid, shall at the option of the City Council of the City
operate as a forfeiture of the grants hereunder.
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THE CITY OF FORT COL L S, COLORADO
Mayor --
ATTEST:
Y
THE WORLD COMPANY, INC.
President
ATTEST:
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DOLPH C SINIONS JA., PALSI AND 1'U LISI,CA DOLP" SIMONe f017DR
` THE LAWRENCE DAILY JOURI' AL-WORLD
PHONE (913) 843 1000 August 9, 1978 L whin= KANW 66044
Members of the Fort Collins City Council:
It has been a pleasure meeting and visiting with Fort
Collins city officials the past several months, and I am
hopeful this initial introduction to your city will mark
the beginning of a long and mutually rewarding and enjoy-
able association between The World Company and the resa.-
dents of Fort Collins. We are enthusiastic about the
opportunity to become closely involved in the business and
community affairs of Fort Collins, and we are hopeful we
will be granted the franchise for construction and opera-
txon of a community antenna television system (CATV) for
your progressive city and University-
We are eager to get started, and as I have mentioned
to various members of the Cable Advisory Committee, and as
I have expressed to city officials, we want to build the
best possible system for Fort Collins. We want to be
proud of our Fort Collins operation and we want residents �
of the city to have a superior and unique communication
system . . . flexible to be able to adapt to the sure-to- 1
come and ever-changing advances in visual and audio means i
of transferring and exchanging information. I
To be a successful and up-to-date system, it must be
a sound and prosperous operation. A fiscally-weak cable
system cannot employ top flight individuals, provide
superior maintenance and buy new equipment. If Fort
Collins is to have the cable system it deserves, it must i
be a good arrangement for all parties concerned--the city,
residents of the city and the owners and operators of the
system.
We do not propose to make any startling or flashy ,
promises, statements of performance relative to being
under construction within an unreasonably short period of
time, or overly generous fees we might be willing to pay
the city in order to obtain the franchise. Nor do we im-
tend to suggest we would_consider giving certain types of
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"free" services or to include optional equipment at no cost
to cable subscribers. All such excessive franchise fees,
"free" services, extra hardware, special equipment, or in-
creased costs of getting into business usually are passed on
to the subscribers.
Rather, what we are offering as an experienced company
which as dedicated to building a first class cable television
system for Fort Collins_ Our entire attention would be de-
voted to this particular system. our record an Lawrence,
Kansas is open for inspection, and we invite you to check
with city officials, utility company officials, residents,
University of Kansas representatives and others to determine
whether we have performed an the manner we told the city
we would operate.
We have top flight people associated with our cable
operation, and we are anxious to build and operate a system
which wall reflect credit on our associates and our company.
We cannot afford to short-change the people of Fort Collins,
or The World Company.
We have the fiscal resources to build and operate the
Fort Collins system, and we are anxious and eager to obtain
the approval of the various city bodies to get started.
Thank you for allowing me to appear before the City
Council on several occasions, and I am hopeful you will
feel justified and enthused an awarding the franchise to
The World Company.
S rely,
91phV. Simons, Jr.
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A. FINANCIAL AND ORGANIZATION DESCRIPTION OF FRANCHISE
APPLICANT
1. A certified financial statement for The World Company
prepared by the accounting firm of Elmer Fox, Westheimer
& Co. , Certified Public Accountants, with a balance sheet
as of December 31, 1977, appears on the following two
pages. This report was made following an extensive de-
tailed audit.
None of the figures have changed substantially as of
August 1, 1978, although cash and Certificates of Deposit
today total about $75,000 more than on the date of the
balance sheet, and a liability a.tem of $185,565 of
"Income Taxes Payable" has since been paid.
ELMER FOX, WESTHEIMER & CO
CERTIFIED PUBLIC ACCOUNTANTS
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors and Stockholders
The World Company
Lawrence, Kansas
We have examined the balance sheet of The World Company as of
December 31, 1977, and the related statements of income and retained earnings
and changes in financial position for the year then ended. Our examination was
made in accordance with generally accepted awaiting standards and, accordingly,
included such tests of the accounting records and such other auditing procedures
as we consider necessary in the circumstances, except as stated in the following
paragraph.
Because we were not engaged as auditors until after December 31,
1976, we were not present to observe the physical inventory or confirm accounts
receivable as of that date and we have not satisfied ourselves by means of
other procedures concerning inventory quantities. The amounts of the inventory
and accounts receivable at December 31, 1976, enter materially into the deter-
mination of the results of operations and changes in financial position for
. the year ended December 31, 1977. Therefore, we do not express an opinion on
the accompanying statements of income and retained earnings and changes in
financial position for the year ended December 31, 1977.
In our opinion, the accompanying balance sheet presents fairly the
financial position of The World Company at December 31, 1977, in conformity
with generally accepted accounting principles applied on a basis consistent
with that of the preceding year.
January u, 1978
Topeka, Kansas
1
THE WORLD COMPANY
• BALANCE SHEET
December 31, 1977
ASSETS
Current assets
Cash $ 2140921
Certificates of deposit 300,000
Accounts receivable, net of allowance for doubtful
accounts of $20,000 276,618
Accrued interest receivable 4,224
Inventories (Note 1) 224,062
Total current assets 1,019,825
Property, plant and equipment, at cost (Note 1):
Land and improvements 193,277
Buildings and improvements 642,723
Machinery and equipment 836,829
Originating channel equipment 170,900
Cable television distribution system 1,075,916
Furniture and fixtures 759721
Automotive equipment 49,297
Construction in progress 1,081
3,045,744
Less accumulated depreciation 1,887,419
1,158,325
Investments and other assets-
Premiums recoverable and cash value of life
insurance 27,860
Other investments 4,100
31,960
52.210.1i0
LIABILITIES AND STOCKHOLDERS' EQUITY_
Current liabilities*
Accounts payable $ 17,459
Advances and other liabilities 11,928
Income taxes payable (Note 4) 185,562
Deferred income taxes (Notes 1 and 4) 134,272
Total current liabilities 349,221
Commitments (Note 2) -
Stockholders' equity
Common stock, $100 par value
Authorized - 200 shares
Issued - 200 shares 20,000
Retained earnings 1,840,889
1,860,889
S2.210.110
The accompanying notes are an integral
part of the financial statements.
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A. FINANCIAL AND ORGANIZATION DESCRIPTION OF FRANCHISE
APPLICANT
2. The World Company of Lawrence, Kansas is a Kansas
corporation which publishes the Lawrence Daily Journal-
World, owns and operates Sunflower Cablevision and owns
and operates the World Printing Service. All of these
are located in Lawrence.
The Journal-World is a szx-day-a-week newspaper with
a circulation of approximately 19,500. It was started
by W. C. Simons in 1891, when there were eight other
papers in operation in Lawrence. The Journal-World has
en3oyed sound growth in both circulation and advertising,
even with the severe competition of nearby newspapers.
The paper has won numerous state, regional and
national awards for editorial excellence, and top
officials of the company have been cited at the national
level for their news-editorial and community involvement.
The editor and publisher of the Journal-World have
served on national newspaper association boards and have
held executive positions within these associations.
Construction of Sunflower Cablevxsion was started
in 1971 with the first subscribers receiving service in
late 1971. The entire system was completed in 1972 and
currently there are approximately 8,300 basic subscrib-
ers to the system. There is every reason to anticipate
the subscriber count will surpass 9,000 within several
months.
Sunflower Cablevision is a superior cable operation
and it has been recognized at the national level for its
excellence in local program origination.
A. FINANCIAL AND ORGANIZATION DESCRIPTION OF FRANCHISE
APPLICANT
The World Company is a private, family owned company
with four stockholders.
The officers are:
Chairman--Dolph Simons, Lawrence, Kansas
President--Dolph C. Simons, Jr. , Lawrence, Kansas
Secretary--Marie N. Simons, Lawrence, Kansas
The other stockholder is John N. Simons, Scottsdale, Arizona.
Dolph Simons is editor of the Journal-World and Dolph C.
Simons, Jr. .is publisher of the Journal-World.
As president of The World Company, Dolph C. Simons, Jr.
is actively involved in the plans, policies and development
of Sunflower Cablevision, with John Dennis serving as
manager of the cable operation. Dennis has had extensive
experience in building cable systems throughout the United
States while he was employed by the Jerrold Electronics
Co. of Philadelphia. In that capacity he supervised the
building of the Lawrence system and then decided to accept
an offer to be manager of Sunflower Cablevision.
Stock ownership in The World Company is broken down
in the following manner:
Dolph Simons---------89
Dolph C. Simons, Jr.--76
John N. S3mons-------34
Marie N. Sunons--- 1
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A. FINANCIAL, AND ORGANIZATION DESCRIPTION OF FRANCHISE
APPLICANT
3. The World Company has the necessary fiscal resources
to build and operate a modern, well-equipped and flexible
cable system for Fort Collins. The accompanying letter
from P. V. Miller, president of Commerce Bank of
Kansas City, Missouri, should indicate the support from
this particular bank. In addition, these is the strong
likelihood that arrangements would be made with one or
more banks in Fort Collins to provide assistance in the
fiscal needs to build the system.
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COMMERCE BANK
of Kansas City"
Box 248 Kansas City 1.hssoun 64141
Phone- 816.234-20M
A Commerce Bancshares Af hate
July 18, 1978
City Council
Fort Collins, Colorado 80521
Gentlemen
We understand that The World Cag3wW, Iawrence, Kansas, is applying
for the franchise to operate a CATV system in Fort Collins. We are
pleased to give them a most favorable relation.
The carpany has been well and favorably knmm to us for many years.
Its principal division, The Lawrence Journal-World newspaper, is
widely respected and considered one of the leading independent
papers in the courttry. 7Y1ey also are experienced in the operation
of CATV systems, as they hold a similar franchise in their own
locale
We are fan,l,ar with the company's financial condit].cn and believe
they have the capacity to install and operate your system successfully.
They will be adequately financed through a combination of their am
resources and loans which we would be willing to make to then.
We have the highest opinion of the campany's management and are
confident they are properly handling any responsibilities or
obligations they would assume. Please let us know if there is
any further information we can provide.
Very truly yam.
^C
-P. V. Miller, Jr.
President
PVM,Jr-A3
10th and Walnut 911%and Maw 12th and Chadotte
B. INSURANCE AMID BONDING
The applicant, The World Company and/or the new
cable-operating company in Fort Collins, would meet
or exceed the minimal amount of insurance coverage
required by various city codes and by the insurance
required by those utility companies serving Fort
Collins. Arrangements have been made with an insur-
ance company in Lawrence, Kansas to work through one
of several Colorado insurance brokers to purchase
the required insurance. Also, a Fort Collins Insur-
ance company executive, L. C. Wilson, has indicated
his company is prepared to write any and all insur-
ance this applicant may need.
The Lawrence, Kansas insurance company also has
indicated it is prepared to arrange the performance
bond of $50,000 when and if a franchise agreement Is
reached between this applicant and the City of Fort
Collins.
1 The accompanying correspondence should assure
Fort Collins officials the applicant has the ability
to purchase the necessary insurance and bonding.
ton9t U �
1 N 5 U R d-A N C E
August 2, 1978
City Council
Fort Collins, CO
The World Company, Inc.
This agency is prepared to issue any and all types of insurance required by the
City of Fort Collins, Colorado and/or utilities serving the City of Fort Collins,
Colorado covering cablevision TV operations that may be entered into by the World
Company, Inc
We are also prepared to issue the performance bond required in the amount of
$50,000 covering faithful performance of the franchisee
All such required insurances and bonds will be issued by insurance companies
licensed to do business in the State of Colorado and will be countersigned as
required by resident agents of Colorado
pAJackLandreth
PHONE 913 843 4030 901 KENTUCKY ST LAWRENCE, KANSAS 66044
C. STATEMENT OF EXPERIENCE
This applicant owns and operates only one community antenna
television system. The facility as called Sunflower Cablevision
and at as located an Lawrence, Kansas.
While attending and participating in numerous newspaper
association meetings in the middle 1960's, Dolph C. S.amons, Jr.
became aware of fast-breaking developments in the field of in-
formation dissemination and the relationship of cable television
systems and daily newspapers. Upon closer study and examination
of possibilities within the field of cable television, Simons
started exploring the potential of a cable system an Lawrence.
Several cable and electronic firms were invited to study the
Lawrence market and to assess the possibility of building and
operating a successful system. In addition, contact was made
with the chief executive of a major cable television company with
systems scattered throughout the country. This particular in-
dividual was invited to visit Lawrence to study the market as a
potential investor and developer.
Lawrence is a "marginal" cable market an that it is not
necessary to have a cable connection an order to receive a
relatively good television picture on a home TV set. For this
reason, the cable company executive indicated he was not a.n-
terested an investing in a Lawrence system as he did not think
it could be a success.
Nevertheless, Simons decided to build the system The entire
project was handled by The World Company, with financing from
the company' s own resources and from borrowing from a Lawrence
bank. The Jerrold Electronics Co. of Philadelphia designed the
system and was employed to build a "turn key" system.
They were instructed to design and build a system of which
city officials, residents of the city, University officials and
all of us would be proud. In addition, we asked that the entire
University of Kansas campus be "wired" at our expense so the
University would be able to use the cable technology however and
when they washed.
Construction of the system was started in early 1971, as
well as construction of a uniquely designed office-studio facility.
The first cable subscribers were connected to the system an late
1971 with the entire facility completed by the middle of 1972.
There is both aerial and underground cable in the Lawrence system.
C. STATEMENT OF EXPERIENCE (cont'd)
At the present tune there are approximately 8,300 basic
cable subscribers with projections calling for more than
9,000 subscribers by December of this year.
From the beginning, those in charge of Sunflower Cablevision
were anxious to provide a superior and flexible cable system and
heavy emphasis has been placed on local origination. A complete
color studio is available for use by most any community educa-
tional or university group or individual. Sunflower Cablevision
has a mobile, remote cablecasting van and is able to either
tape, or uz specific locations, cablecast "live" programs.
High School football and basketball games, University sports
events, community activities, interview shows, and theater pro-
ductions are just a few of the programs originated by Sunflower
Cablevision.
We have not applied for any other cable television franchises
as we have devoted all of our attention to making Sunflower
Cablevision as good as we can. And, we have ideas and plans for
making it even better in the years to come.
Now, however, with our experience of starting from scratch,
providing the financing, designing the system, building the
system and developing and training the personnel to operate a
successful cable system, we feel we have the ideal background
and experience to build and operate a cable system in Fort
Collins. We have worked closely with city officials in the
development of a franchise agreement, we have been able to build
a system which is attractive to subscribers, we have worked with
University officials and we are confident we can build and
operate a superior cable system uz Fort Collins.
i
D STATEMENT OF NON-DISCRIMINATION
There is no d3_scrim3.nat3.on in the availability of Sunflower
Cablevision service in Lawrence, nor would any such practice be
allowed in a Fort Collins cable system. Sunflower Cablevision
operates its facility in a sound, bus3.ness-13.ke manner and the
only reasons for disconnecting or denying cable connections are
based upon poor credit, non-payment of past due bills or theft
of service.
No discrimination is allowed in the employment of personnel. �
i
E. CABLE COMMUNICATIONS SYSTEM PROVISIONS '
1 (a) This applicant, upon the issuance or granting of a
franchise by the city of Fort Collins, will make arrangements
with an acknowledged, reputable and highly professional cable
and electronics firm to conduct an engineering survey of
Fort Collins. This will require several individuals to
"walk" the entire city, noting all streets and alley ways,
all telephone and electric power poles and the city's under-
ground utility network. These individuals also will confer
with city officials relative to new areas likely to be
developed in the next several years and they will visit with
utility officials about various areas within the community
where either telephone or power lines are scheduled to be
placed in an underground mode.
i
Upon completion of the survey, the company then will
design a system to serve Fort Collins, and one which is
engineered electronically in such a manner as to provide
clear, strong clean signals throughout the city, a system
which can be expanded to provide service to new developments,
and a system which will provide two-way capability to various
specific locations. The franchisee will direct the engineer-
ing company to design a system which will make cable service
available to all residents within the city of Fort Collins,
however the franchisee does suggest that the city adopt a
` . "line extension" policy which would protect the franchisee
from having to provide service to isolated pockets of
residences or in situations where the extension of service
clearly would be economically unwise. It is suggested that
the city adopt a "line extension" policy which would allow
the franctnsee the flexibility of not having to provide
service to any such area unless there is a minimum of 60
residences per strand mile of cable.
1 (b) The specific location of the tower site and the head
end facility cannot be accurately pinpointed until completion
of the electronic survey and until the Fort Collins system
has been designed. However, there is every intention of
having these facilities designed, built and in operation
within a year after the franchise has been granted--with the
one provision that should there be some event outside the
control of the franchisee, such as a mayor storm, construc-
tion strikes, or other like situations, there could be some
delay in completing the headend and hub sites within a year.
E. CABLE COMMUNICATIONS SYSTEM PROVISIONS
1 (b) (=ont'd)
At this point it should be noted city officials will
have to determine when the "franchise granting" date is
to be set in motion Is the "go" or "start" date to be
that specific time when the City Council takes formal
action and grants a franchise to an applicant, or rather
after residents of Fort Collins give their approval to the
granting of a franchise at an election to be held sometime
after the city council' s action?
The determination of this date could be extremely
critical for a franchisee having facilities under construc-
tion or completed within certain time frames. Also, what
is the city' s position relative to the possibility of a
franchisee starting engineering work and initial construc-
tion and then having the franchise re3ected by city voters?
1 (c)
The franchisee will meet or exceed all Federal
Communications Commission technical standards in the Fort
Collins cable system. Upon completion of the engineering
and electronic survey, and after the initial design of the
system, the franchisee will provide city officials with a
complete statement detailing the "system specifications"
which will outline the electronic characteristics and
capabilities of the Fort Collins system.
1 (d)
The cable system to be built and operated by this
applicant will have the technical capability of providing
two-way digital response as required by the Federal
Communications Commission. In addition, the system will
be designed and engineered to allow two-way transmission
capability between the "hub" or office-studio facility
and various sites agreed upon by city, university and
school system officials.
1 (e)
In all areas of Fort Collins where telephone and power
utilities currently are placed in an underground mode, this
applicant will place its cable lanes underground. This
also will apply to all new developments within the city.
In those areas where telephone and power lines currently
are above ground, the applicant will study such areas to
determine if it would be best at the outset to place the
cable underground or rather to attach the cable to existing
E. CABLE COMMUNICATIONS SYSTEM PROVISIONS
1 (e) cont'd
poles. There is reason to believe that in some areas which
now have aerial construction for telephone and power lines,
this applicant would want to place its cable underground.
This is sure to be the case in those areas where telephone
and power company spokesmen indicate they plan to vacate
the poles within a reasonable period and that they intend
to bury their lines.
This applicant would work closely with power and tele-
phone representatives in all new developments and would hope
to share ditching expenses and shaLe the ditch in conformance
with proper and safe procedures.
1 (f)
This applicant plans to design and build a studio facility
at the "hub" or office site which will provide the space and
equipment to allow and encourage the origination of various
types of live color cablecasting. Studio and control booth
equipment would be of the make and design engineered for
cablecasting, as opposed to "network" or commercial television
facilities. However, the cameras, video tape equipment, film
chain system, lighting and music-sound equipment will be as
modern as the industry now is using.
In addition to the studio cablecasting facilities, this
applicant also would have mobile and remote cablecasting
capabilities. This would permit the video taping of events
throughout the Fort Collins area and there is the possibility
that through the use of micro-wave transmission devices,
live cablecasting could be provided throughout the area.
Also, live cablecasting will be possible from the Colorado
State University campus as well as other selected locations
within the city.
The types of programing or possible uses for these
cablecasting facilities is almost unlimited. It is important
to remember that due to the presence of the Educational Media
Center at Colorado State University, Fort Collins has perhaps
the nation' s outstanding university electronic visual media
center. This expertise and interest in television, video tape
and other means of video communication represents a tremendous
resource for the city and for the development of cable tele-
vision programing
E. CABLE COMMUNICATIONS SYSTEM PROVISIONS
1 (f) cont'd
This applicant would seek to develop a close, coopera-
tive relationship with the Educational Media Center in all
phases of the cablevision operation, but in particular in
the development of local cablecasting and community involve-
ment in cablecasting.
Program possibilities include:
High School events
Colorado State University events
Community programs and activities
Educational programing
Home instruction in many areas
Continuing education programing
The inclusion of "SURGE" programs
City government programs
Debates of local issues
Interviews with interesting personalities
And, the availability of cable studio facilities
to the many organizations and programs listed
in the Larimer County directory of Human Services.
It is difficult to define or list specific programing
possibilities as actually there is an almost unlimited source
of potential cablecasting programs. A word of caution should
be noted. Although the possibilities for this programing are
extremely flexible and diverse, it still requires the enthus-
iasm and interest of those associated with various activities
along with their time to develop and devote to the programs
and equipment.
E. CABLE COMMUNICATIONS SYSTEM PROVISIONS
2 (Service Provisions)
The cable television system planned for Fort Collins
by this applicant will have a capacity of 30 channels.
in visiting with members of the Educational Media Center
staff at Colorado State University and members of the Fort
Collins Cable Advisory Committee, and in trying to project
the needs and uses for cable in the next 10 years, it would
appear unlikely that more than 20 channels will be utilized.
However, we think it wise to design a 30-channel system.
Presently there are 6 off-air television signals received
in the Fort Collins area. All of these would be included in
the cable television package. In addition, this applicant
plans to "import" distant signals via satellite transmission
for insertion into the Fort Collins cable system.
There also will be channels for local origination program-
ing, channels for news and weather information, and channels
for use by educational and governmental bodies as well as
channel space for "public access".
There is far more programing and potential signal
availability in Fort Collins than is present in most communi-
ties throughout the country and this presents some complica-
tions. It means some method must be used so cable subscribers
will be able to view the numerous signals, which in number
are likely to surpass the normal selection choice on the
typical home television set.
This will necessitate the use of a "converter".
1. Current "off air" channels to be carried on the
Fort Collins system would include:
I,14GN -----------Denver, Channel 2
KOA-TV --------Denver, Channel 4
KMGH-TV---------Denver, Channel 7
KBTV -----------Denver, Channel 9
KRMA-TV---------Denver, Channel 6 !
KYCU-TV---------Cheyenne, Channel 5
2. Distant or "imported" signals which are likely to
be carried on the Fort Collins cable system: (the
term "likely" is used because in the case of
station WGN-TV, Chicago, there is no firm timetable,
or specific date as to when this signal will be
transmitted via satellite. Nevertheless, this
E. CABLE COMMUNICATIONS SYSTEM PROVISIONS
2 (Service Provisions)
2. cont'd
W%j_m applicant plans to insert the WGN-TV signal
just as soon as it is available. Perhaps this
will be possible by the time the Fort Collins
system is able to make its first customer connec-
tion, but as of this date, the WGN-TV signal is
not available)
Distant signals planned for the Fort Collins
system-
WTCG-TV, Channel 17, Atlanta, Georgia
WGN-TV, Channel 4, Chicago, Illinois
CBN-TV, Christian Broadcasting network,
Virgin3.a,0o-
PTL-TV, another Christian broadcasting
network, North Carolina.
All of these signals would be received via the
SatCom 1 satellite and an earth receiving station
in Fort Collins.
In addition to these distant signals it is planned to
include a "premium" or "pay" television signal in the Fort
Collins system, and this, too, would be received via
satellite and an earth receiving station.
3 (The allocation of channels for- )
Public Access: A channel will be available for use by those
requesting "public access" type program-
ing. At the outset or in the early
development stages of the Fort Collins
system, it is unknown as to how much time
will be required to cablecast those taking
advantage of the "public access" channel.
It seems reasonable to assume that several
types of programing will be carried on
the same channel or perhaps several
channels until the demands for use of the
channel fill it to capacity. However, in
the event there is the demand for a number
of channels to meet all local needs, the
system planned for Fort Collins will have
ample channel capacity to accommodate all
requests.
E. CABLE COMMUNICATIONS SYSTEM PROVISIONS
3 (The allocation of channels for: ) cont'd
Municipal government: If city officials are anxious to use
cablevision facilities for programing,
channel space will be available. Some
of the areas which might be considered
in such programing could include
educational programs explaining city
developments and activities, zoning,
growth policies, or discussions of
current topics of interest. Perhaps
the city's crime prevention program
could be enhanced by the use of
cablecasts_ It is not known whether
Fort Collins officials are anxious to
move into the areas of meter reading
by cable devices or other similar
programs, but this is possible.
Educational: There are almost unlimited programing
possibilities dealing with education
and channel space will be available
for the Poudre R-1 School District to
use the facilities of the Fort Collins
cable television system. Closed circuit
programing within the school system for
teacher instruction, possible connections
with library facilities, special program-
ing for those confined to their homes,
and many home extension programs could
be carried on the cable system. Again,
if there is the demand for channel use,
the system will have ample flexibility
to handle most any programing needs.
Unallocated: Inasmuch as the Fort Collins system
will have a 30-channel capacity, there
would seem to be a good number of un-
allocated channels for future use and
development.
e
t
t
E. CABLE COMMUNICATIONS SYSTEM PROVISIONS
4 (Channels for "Home Box Office" and similar subscription
services:)
Channel space will be available for a "premium" or
"pay" television signal and this signal will be received
via satellite and an earth receiving station. This
signal will not be available to all cablevisxon subscribers,
but rather just for those who pay an additional charge for
this particular programing. Additional channels may be
added at a later date, but it is anticipated the first such
programing will be provided by Home Box Office, New York
City, which is a division of Time, Inc. and is the nation's
largest supplier of such programing.
5 It is difficult to pinpoint the exact number of channels
which will be put into use at the outset and how many addi-
tional services or programs will be added at a later date.
However, there will be a 24-hour-day news channel on the
cable system which supplies up-to-date news from throughout
the country and abroad. This service will be provided by
either the Associated Press or TJnited Press International
and there are new developments in this field which may pro-
vide additional programing possibilities. Weather news will
be carried and there is channel capacity to add whatever
services in the field of news-financial news-weather, or
other such specialized programing, when and if there is
programing available and sufficient interest by Fort Collins
residents.
6 (FM Radio Stations)
The cable system will have an all-band FM antenna in
order to receive all off-air FM signals and will in turn
insert these signals into the cable system.
At this point, it seems appropriate to make several
additional comments.
When a community or a cable operator is thinking about
starting a new system, most everyone is enthused about the possi-
bility and the opportunities of local cablecasting and local
program origination, the importation of distant signals and all
kinds of special service. All of this is possible and in many cases
the cable systems have indeed been able to provide a sizable
"smorgasbord" of programing. As mentioned before, there as almost 1
no limit as to what can be provided by cable, but at the same time
there usually must be sufficient interest in the programing and a
willingness to pay for something extra or special before the
venture can be successful.
There is no question but that Fort Collins presents a
unique and exciting cablevxsion potential and this applicant is
anxious to have it be an outstanding facility.
In order for home television viewers to be able to see more
than 12 separate pictures on their television screen, there must
be a device at the subscriber's home which enables the subscriber
to ad3ust his or her television set to accept various additional
channels which are being transmitted through the cable system's i
coaxial cable. These devices are called "converters" t "encoders" I
or "decoders" and under the plans submitted by this applicant, it
will be necessary for all cable subscribers to have such a
device.
The method of paying for these devices will be addressed
later am this application.
I
• 1. Installation and service of the system to schools, to public
service installations.
The applicant proposes to provide basic cable service
to the public school buildings of Fort Collins, to any private
or church supported school, the city' s fire stations, the city' s
police stations and the city and/or county 7axl facility. in
the case of the school buildings, the cable company would
extend the service at no cost to the building structure, but
would prefer to have school system employees take care of the
internal wiring. There would be no monthly service charge
for this basic cable service to the schools.
in the case of city bu3.ld3.ngs, the cable company would
extend the service to the building, again at no cost, and
would work with city officials to determine the amount of
internal wiring required to meet the desires of officials at
each facility. If there is extensive wiring required, the
cost of such servicd can be worked out at a reasonable charge.
Each building is likely to present a different situation so
it is difficult to generalize about all city buildings. As
in the case of the school buildings, no monthly service
charges would be made for the basic cable service.
2. Two-way:
Following completion of the engineering and electronic
survey of Fort Collins and after consultation with city,
school and University officials, a map will be prepared show-
3.ng the routes of a two-way operational cable system between
the office-studio-hub facility and the following locations:
1. Colorado State University. The cable company will
coordinate planning and engineering with University and
Educational Media Center officials to insure that there is a
complete and flexible two-way cablecasting capability between
the University and the rest of the cable system.
2. Poudre R-1 School District Administration Building.
A two-way operational system will be designed to connect the
Poudre R-1 School District administration building and the
cable company's studio-hub facility.
3. A two-way operational system will be designed to
connect the Fort Collins municipal building and the cable
company's studio-hub facility. It might be wise at this time
for city officials to see if the new city building has the
necessary conduit, internal wiring, and/or access routes
into the building for future cable wiring.
In the case of the three Fort Collins High Schools, the
public library and the Lincoln Community Center, as well as
other possible sites, the cable company is prepared to extend
two-way operational connections when there is sufficient
evidence of interest, desire and facilities in these locations
to initiate or originate programing. It is possible that
additional facilities can be included in the original two-way
system, once the basic two-way cable routes have been
designed and engineered.
3. The cable system will be designed so that "private"
reception can be provided and certain audiences can receive
specific programing. This would be achieved through the use
of a "scrambled signal" and a "descrambler" device at the
subscriber's home.
4. When a Spanish-speaking television signal is available
via satellite transmission, the applicant would plan to insert
this signal into the Fort Collins cable system.
5. Additional two-way services- As the city of Fort Collins
grows and as there are increasing needs and uses for cable
facilities, local program origination, "private" reception
or other applications of cable technology, the applicant will
be prepared to make additional two-way operational facilities
available to meet these needs-
In all the situations mentioned above, the applicant would like
to note that the more use of the cable facilities which can be
developed among Fort Collins residents, the better the chances
for a truly unique and successful system. We are anxious for as
many people from as many different areas of interest to use the
facilities of the cable company as possible.
In past months there has been some discussion among city
officials relative to the need' for a cable advisory committee and/or
what role city council members should play in the cable operation.
This applicant would be pleased to work with and meet periodically
with a group of citizens interested and knowledgeable about cable.
We think this could work well for all parties--the city, the
public and the cable operator.
F. SUBSCRIBER RATES AND CHARGES.
There are various ways to devise a fair and equitable
rate structure for the Fort Collins cablevision system
although there is no "perfect" or ideal yardstick to use
in arriving at such charges.
Inasmuch as the Fort Collins system must incorporate
the use of "converters" in order for cablevisxon subscribers
to be able to receive all the programing which eventually f
would be available to home viewers, this applicant has
developed a rate schedule which will not create a "tiered"
system or make certain types of programing more accessible
than others.
We do not want to develop a system whereby there would
be various classes or divisions of viewers in Fort Collins--
depending upon whether or not they purchased or leased a
converter. Therefore, we are proposing a system where all
cablevisaon subscribers will have a converter with no
additional installation charge to the customer.
Rates proposed by this applicant:
Monthly Service Charges:
First and initial outlet $ 9.60 including tax
Additional outlets (each) 2.50 plus tax
Connection Charges:
First outlet (original order) 19.50 plus tax
Additional outlets (original order) 5.00 plus tax
Additional outlets (later date) 9.50 plus tax
Relocation of outlets 9.50 plus tax
Transfer charge 9.50 plus tax
Reconnect charge (nonpay or
temporary disconnect) 9.50 plus tax
There will be no charge for the basic converter, however
a subscriber would be charged the difference between the basic
converter and a more sophisticated converter of the customer
should request this latter device. i
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F. SUBSCRIBER RATES AND CHARGES: (cont'd)
This applicant proposes the following rates for "bulk"
sales, or sales to apartment complexes where the owner-
operator of the apartment or townhouse-development agrees
to supply a cablevisaon signal to all units within the
complex. In such an arrangement there is a single billing
by the cablevision company to the owner-operator who pays a
single bill to the cablevision company.
Monthly Service Charges: lst Outlet Additional Outlet
2-15 units $6.75 $2.50
I
16-199 units 5.25 2.50
200 or more units 4.75 2.50
}
In those apartment facilities where the owner-operator
does not wish to provide service for all residents, regular
basic cable rates will apply for those living within the unit.
The applicant proposes the following rates for motels
and hotels:
Monthly Service Charges:
1-49 units $3.50 for each outlet
50 or more units 3.00 for each outlet f�
In both the "bulk", or apartment complex rate, as well I
as the motel rate system, no installation charge will be
made if the cable system is able to utilize a master dis-
tribution system which may be present, or is in workable
condition, in that facility. If a master distribution
system must be installed by the cablev3.s3.on company, the �
charge for this will have to be negotiated.
The rate for Home Box Office will be $9 95 a month. I
Those wishing to receive this premium or "pay television i
signal will have to use a different converter than that used
by those receiving merely the basic cable service, and con-
sequently they will be charged the difference between the
regular converter and the more costly converter required by
those receiving the HBO signal.
III Security of Proposals-
This applicant is prepared to pay a non-refundable sum of
$10,000 to the City of Fort Collins upon the granting of the
franchise, however the question of when the "franchise"
actually is granted needs to be answered. Is the franchise
granted when members of the City Council select one of the
applicants and the franchise agreement is worked out between the I
applicant and the city, or is the franchise still a tentative
situation until it is approved by the voters of Fort Collins?
This applicant would prefer to withhold the $10,000 until
after the vote of the residents unless there is an indication
by city officials that the $10,000 would be returned in case
the voters should reject the franchise question.
The applicant, as previously noted, is prepared to purchase
the necessary insurance and performance bonds.
I
E
IV Franchise Fee:
• This applicant proposes payment of a 3 percent franchise
fee as recommended by the Federal Communications Commission.
In fact, the F.C.C. suggests that the 3 percent figure be
used as a maximum. The 3 percent figure would apply to
cablevision subscriber charges and would not include revenue
from installation costs, re-connect charges or any revenues
which might accrue from the sale or lease of converters or
other equipment.
The applicant sees no need for an additional 2 percent
payment to the city for regulation or other services as there
should be no need for the city to expand city offices or
personnel to handle cable matters. This merely increases the
costs of government and is not needed. This would be an j
unnecessary expense for all parties and the money which would t
be earmarked for the additional 2 percent payment to the city
could be better used in modernizing and updating the cable I
system.
In addition, the cable operator will be paying a 2 percent
city sales tax figure as well as a 3 percent state sales tax
figure.
As noted earlier in this application, the success of the
system depends on the cooperation of all parties and the
desire by the operator to provide as good a system as possible
for the Fort Collins market. If higher franchise fees are
required and additional payments must be made to the city,
chancesare this will result in higher charges to the sub-
scribers. This is counter productive as higher subscriber
rates quite likely could limit the number of subscribers, which
in turn handicaps the cable company and reduces the potential
franchise fee for the city.
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V Complaints:
The applicant will maintain an efficient system for
handling service calls and complaints. It is essential to
have able, courteous and prompt service personnel to meet
the needs of cable subscribers. No charge will be made for
service calls, and during normal working hours--8 am to 6
pm—the service, repair and maintenance personnel will reply
to any such calls within a short time. in Lawrence, for
example, most service calls during these hours are answered
and taken care of with 1 to 3 hours of the original complaint
or query.
During the hours from 6 pm to 8 am there will be I
personnel assigned to be on a stand-by basis for service, ;
repair and maintenance. An answering service will be used
to receive all phone calls and the answering service will ,
then contact the cable employee assigned to handle such
complaints.
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