APPENDIX B – FRANCHISESAPPENDIX B – FRANCHISES\ORDINANCE NO. 842

AN ORDINANCE RENEWING THE CABLE TELEVISION FRANCHISE WITH GALAXY CABLE, INC., D/B/A GALAXY CABLEVISION, AND APPROVING THE CHANGE OF EXPIRATION DATE.

WHEREAS, Galaxy Cable, Inc., d/b/a Galaxy Cablevision, operates a cable television system within the City of Chapman, Kansas under the franchise Ordinance #588 passed by the City Council on January 5, 1984, as thereafter amended and assigned by Transfer Ordinance #737 dated January 5, 1994; and

WHEREAS, said franchise was granted for a period of ten (10) years and was due to expire on January 5, 1994, thereafter amended and assigned by Transfer Ordinance #737 and is now due to expire January 5, 2004; and

WHEREAS, Galaxy Cable, Inc., d/b/a Galaxy Cablevision, has requested that the City of Chapman renew the franchise to operate the cable television system within the City for an additional five (5) years.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHAPMAN, that:

SECTION 1: The request of Galaxy Cable, Inc., d/b/a Galaxy Cablevision, to renew the cable television franchise dated January 5, 1984, as assigned and amended by Transfer Ordinance #737, and to change the expiration date thereof to January 5, 2008, is hereby granted subject to the following amendments:

(A)  FRANCHISE FEE. Galaxy shall pay to the City of Chapman, Kansas, and five percent (5%) of gross revenues as a franchise fee. “Gross revenues” shall mean all revenues received by Galaxy, its affiliates or subsidiaries, from the operation of its CATV system in the City of Chapman, Kansas, excluding taxes or fees on services furnished by Galaxy herein imposed directly or indirectly by any state, city or other governmental unit or other third party and collected by Galaxy on behalf of such entity. The percentage of gross revenues may be reviewed and changed annually by City, provided that the amount shall not exceed that allowed by law. Gross revenues shall not include any revenues received by Galaxy its affiliates or subsidiaries from internet access.

(B)  INDEMNIFICATION AND LIABILITY. Galaxy shall indemnify, protect and save harmless the City from and against losses and physical damages to property, and bodily injury or death to persons, including payments made under any Workmen’s Compensation Insurance claim, which may arise out of or be caused by the construction, maintenance, operation of the Galaxy cable system in the City, or any act of Galaxy, its agents or employees. Galaxy shall carry sufficient insurance to the extent of $2,000,000 per occurrence against liability for bodily injury including death and to the extent of $500,000 per occurrence against liability for damage to property including loss of use occurring on, arising out of or in any way related to the system and system facilities. Galaxy shall also carry comprehensive automobile liability insurance to the extent of $1,000,000 per occurrence against liability for bodily injury including death and to the extent of $300,000 per occurrence against liability for damage to property including loss of use occurring on, arising out of, or in any way related to the system.

(C)  In addition to providing without charge, one (1) cable TV connection to the City and each elementary and high school, public or parochial, and to each public library, Galaxy shall also provide when available through Galaxy or its lessees, assignors or subsidiaries, a broadband internet connection to the City.

(D)  The Emergency Alert System is currently provided to the City at no cost as a public service to the citizens of the City. Galaxy shall continue to own, operate and maintain this service and provide this service to City as a public service to City.

(E)   Galaxy currently provides a public access channel known as “channel 41 “. Galaxy shall continue to provide this access as a public service to the schools.

SECTION 2: Except to the extent modified herein, the Franchise Ordinance dated January 5, 1984, as assigned and amended by Transfer Ordinance #737, shall continue in full force and effect.

(02-26-2003)