ARTICLE 14
CABLE COMMUNICATIONS
GENERAL PROVISIONS
Section 1. SHORT TITLE:
This ordinance shall be known as the Holly Ridge Ordinance for the Regulation of Cable Communications.
Section 2. DEFINITIONS:
a. “Town” shall mean the Town of Holly Ridge, North Carolina, and all territory within its existing and future territorial
corporate limits, or jurisdiction for the purposes of this ordinance.
b. “Council” shall mean the governing body or Town Council of the Town of Holly Ridge, Onslow County, North Carolina.
c. “Cable Communication System, Cable System, CATV or System” shall mean a system of coaxial cables or other
electrical conductors and equipment used or to be used to originate or receive television or radio signals directly or
indirectly off the air and to transmit them via cable to subscribers for a fixed or variable fee, including the origination,
receipt, transmission, and distribution of voices, sound signals, pictures, visual images, digital signals, telemetry, or any
other type of closed circuit transmission by means of electrical impulses, whether or not directed to originating signals
or receiving signals off the air.
d. “Access channels” shall mean those channels which, by the terms of this Article or the franchise agreement, are
required to be kept available by the franchise for partial or total dedication to public access, educational access, or
local government access.
e. “Franchise” shall include both the franchise granted pursuant to this Article and the franchisee agreement, or
granting ordinance, and all rights, powers, and privileges there under.
f. “Franchise Agreement” shall mean the separate agreement or granting ordinance by which the franchise is granted
to the franchisee, as required by this Article.
g. “Franchisee” shall mean and include all persons having any rights, powers, privileges, duties, liabilities or obligations
under this Article and the franchise agreement (herein collectively called the “franchise”) and, also, all persons having
or claiming any title or interest in or to the system, whether by reason of the franchise itself or any subcontract,
transfer, assignment, mortgage, pledge, hypothecation, security agreement, management agreement or operating
agreement, or otherwise arising or created.
h. “Gross Subscriber Revenues” shall mean all revenues of the franchisee derived from service charges, and fees for
non regular cable benefits, including the transmission of broadcast signals and access and origination channels, if any,
together with the gross revenues derived from per-program and/or per- channel charges, pay TV, and leased channel
revenues. It does not include advertising revenues or revenues from initial installation fees.
i. “Pay TV” shall mean an arrangement under which a charge is made to a subscriber for receiving a particular
television program or series or programs.
j. “Subscriber” shall mean a person or organization whose premises are physically wired to receive any transmission
from the system.
k. “Subscriber Service Drop” shall mean the extension wiring from the franchisee’s distribution lines to a subscriber’s
building.
ARTICLE 14-2
FRANCHISE
Section 1. Franchise Required
No person shall own or operate a CATV system or other system as defined herein, in the Town, except by franchise
granted by the Town, in the form of a franchise agreement between the Town and the franchisee, which shall comply
with all the specifications of this Article.
Section 2. Selection Of Franchisee
(a) In selecting a franchise pursuant to this Article, the Town shall prepare a request for proposals to seek bids for a
cable communication system to be established under franchise by the Town. This request for proposals will contain
information and instructions relating to the preparation and filing of proposals’ conditions regarding the installation,
operation and maintenance of a CATV system under Town franchise; and the criteria to be used in evaluating
applicant proposals.
(b) Applicants may be evaluated according to the following criteria, together with any other relevant criteria:
(1) Installation Plan. Consideration may be given to an installation plan that would provide flexibility needed to adjust
to new developments, maintenance practices, and services that would be available to the subscriber and the
community immediately and in the future.
(2) Rate Schedule. Consideration may be given to applicants with the most reasonable installation and subscriber
rate schedule.
(3) Financial Soundness and Capability. The evidence of financial ability required in the applicant’s proposal shall
be such as to assure ability to complete the entire system within a maximum of three (3) years of the date the
franchisee receives the Federal Communications Commission Certificate of Compliance, if required, or three (3) years
from date franchise is granted, if no certificate or the equivalent is required.
(4) Demonstrated Experience in Operating a CATV system under Town Franchise.
Consideration may be given to evidence of the applicant’s experience in operating a CATV system under municipal
franchise, where such evidence would show or tend to show or confirm the ability of the applicant to furnish sufficient
and dependable service to the potential public and private users.
Section 3. Franchise Fees
(a) During the term of any franchise granted pursuant to this Article, the franchise shall pay to the Town for the use
of its streets, public places, and other facilities, not including poles or underground conduits, as well as the
maintenance, improvements, and supervision for administrative costs thereof, an annual franchise fee in an amount
equal the maximum percentage fee allowed by FCC regulations without prior FCC approval or waiver (presently 3% up
to a maximum of 5 % based upon the annual gross subscriber revenues received by it from operations conducted
within the Town. This payment shall be in addition to any other tax or payment owned to the Town by the franchise and
does not include rental of poles or underground conduits.
(b) Sales tax or other taxes levied directly on a per subscription basis and collected by franchise shall be deducted
from the gross subscriber revenues before computation of sums due the Town is made. Payments due the Town under
the terms of this Article shall be computed quarterly as of September, December 31, March 31, and June 30 for the
preceding quarter and shall be paid on or before the thirtieth calendar day from each said computation date at the
office of the Town Clerk during regular business hours. The Town shall be furnished a statement with each payment,
certified as correct by the franchisee, reflecting the total amount of gross subscriber revenues, and the above charges,
deductions, and computations, for the three (3) month payment period covered by the payment. With the payment
each year for the quarter ending on December 31, a statement prepared by a Certified Public Accountant shall be
submitted certifying that the statements filed and Payment made by the franchisee for the preceding year were correct.
(c ) No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the
Town may have for further or additional sums payable as a franchise fee under this Article or for the performance of
any other obligation hereunder.
(d) Failure to pay any fees required by this Section shall result in automatic suspension of the franchise granted,
and reinstatement thereof may be had only upon resolution by the Town Council and payment of the delinquent fee or
fees plus any interest or penalties as may be required by the resolution.
Section 4. Term and Termination of Franchise
(a) No franchise granted hereunder, nor any renewal thereof, shall be for a term of more than fifteen (15) years. A
renewal may not be granted more than two (2) years prior to the expiration of the existing term.
(b) In addition to all other rights and powers of the Town by virtue of the franchise or this Article, the Town may
terminate and cancel the franchise and all rights and privileges of the franchise there under in the event that the
franchisee either:
1. Substantially violates any provision of the franchise or this Article, or any rule, order, or determination of the Town
Council made pursuant thereto, where such violation shall remain uncorrected for a period of thirty (30) days
subsequent to receipt by franchise of written notice of said violation, except where such violation is not the fault of the
franchisee or is due to excusable neglect.
2. Attempts to dispose of any of the facilities or property of its CATV business to prevent the Town from purchasing
same, as provided for herein; or
(3) Attempts to evade any of the provisions of this Article or the franchise agreement, or practices any fraud or deceit
upon the Town.
(c ) Such termination and cancellation shall be made by resolution of the Town Council duly adopted after sixty (60)
days’ notice to the franchisee and shall in no way affect any of the Town’s rights under this franchise or any provisions
of law; Provided, however, that before the franchise may be terminated and canceled under this section, the franchise
shall be provided with an opportunity to be heard at a public hearing before the Town Council, upon twenty-five (25)
days’ written notice to the franchisee of the time to constitute cause for revocation, and shall be published in a local
newspaper of general circulation at least fifteen (15) days before the date of the hearing.
ARTICLE 14-3
FRANCHISE PROVISIONS AND RESTRICTIONS
Section 1: Franchise Provisions
(a) All franchises granted pursuant to this Article shall be subject to, and shall expressly indicate that they are
subject to, the following provisions:
(1) Any franchise granted hereunder shall be subject to the right of the Town to revoke the franchise pursuant
to this Article.
(2) Any franchise granted hereunder shall be subject to the right of the Town:
(a) To repeal the same for misuse, non-use, or the failure to comply with the provisions of this Article, or any other
local, State or Federal laws of Federal Communications Commission rules or regulations.
(b) To require proper and adequate extension of the plant and service and maintenance thereof at the highest
practicable standard of efficiency; the Town shall require extension of subscriber service to twenty-five percent (25%)
of the residents of the Town within twelve (12) months of franchisee’s receipt of the Federal Communications
Commission (F.C.C.) Certificate of Compliance, if required, if not, from the granting of the franchise; fifty percent (50%)
of subscribers’ premises in the Town shall be wired for reception within two (2) years and one hundred percent (100%)
within three (3) years. Any area annexed by the Town subsequent to the grant of a franchise shall be served by the
franchisee within one (1) year from the effective date of annexation, or within the initial three (3) year service period
specified above, whichever last occurs; provided, that in any annexed area where there are less than forty (40)
residences per mile of proposed cable route, such period shall commence on the date such area or any part thereof is
developed to the extend that there exist at least forty (40) residences per mile of proposed cable route.
(c ) To establish reasonable standards of service and quality of products, and to prevent unjust discrimination in
service or rates.
(d) To require continuous and uninterrupted service to the public in accordance with the terms of the franchise
throughout the entire period thereof.
(e) To impose such other regulations as may be determined by the Town Council to be conducive to the safety, welfare
and accommodation of the public.
(f) To control and regulate the use of its streets, alleys, bridges and public places and the space above and beneath
them. Every franchisee shall pay such part of the cost of repair of streets, alleys, bridges and public places as shall
arise from its use thereof and shall protect and save the Town harmless from all dangers arising from said use. The
franchisee may be required by the Town to permit joint use of its property and appurtenances located in the streets,
alleys, and public places of the Town, by the Town and other utilities insofar as such joint use may be reasonable
practicable and upon payment of reasonable rental therefore: Provided, that in the absence of agreement, upon
application by any franchisee, the Town Council shall provide for arbitration of the terms and conditions of such joint
use and the compensation to be paid therefore, which award shall be final.
(g) Through its appropriately designated representatives, to inspect all construction or installation work performed
subject to the provisions of the franchise and this Article, and make such inspections as it shall find necessary to
insure compliance with the terms of the franchise, the Chapter, and other pertinent provisions of law.
(h) At the expiration of the term for which this franchise is granted or upon the termination and cancellation as provided
therein, to require the franchisee to remove at its own expense any and all portions of the CATV system from the public
ways within the Town.
Section 2. Franchise Agreement
(a) The applicant awarded a franchise by the Town Council a resolution shall execute a franchise agreement,
agreeing to the terms and provisions of the franchise and request for proposal. In addition, the franchise shall, within
thirty (30) days of the date of execution of the franchise agreement, submit his filing of an application for a Certificate
of Compliance with the Federal Communications Commission. Failure of the selected applicant to execute such an
agreement within thirty (30) days of the Town’s demand therefore, or failure to file an application for a Certificate of
Compliance within the time herein required, may be grounds for immediate revocation of any rights the applicant may
have in the franchise.
(b) In addition to those matters required elsewhere in this Article to be included in the franchise agreement, it must
contain the following express representations by the franchisee that:
(1) It accepts and agrees to all of the provisions of this Article, and any supplementary specification, as to
construction, operation, or maintenance of the system, which the Town may include in the franchise agreement.
(2) It has examined all of the provisions of this Article and waives any claims that any provisions hereof are
unreasonable, arbitrary, or void.
(3) It recognizes the right of the Town to make reasonable amendments to this Article during the term of the
franchise upon sixty (60) days prior notice to the franchisee or without notice with respect to emergency amendments;
provided that such amendments shall not affect rights of any franchisee under an existing franchise agreement without
the franchisee’s consent. It further recognizes and agrees that the Town shall in no way be bound to renew the
franchise at the end of any franchise term.
(4) It recognizes and agrees that it may be considered a licensee for the purpose of this Article.
(c ) No franchise shall be exclusive.
(d) Every franchise shall specifically delineate the territorial extent of the Town in which the franchisee is authorized to
operate.
(e) The franchise agreement shall contain such further conditions or provisions as may be included in the request for
proposal or negotiated between the Town and the franchisee, except that no such conditions or provisions shall be
such as to conflict with any provisions of this Article or other law. In case of such conflict or ambiguity between any
terms or provisions of the franchise agreement and this Article, the words of this Article shall control.
Section 3. Contravention of Franchise
(a) A breach by the franchisee of the franchise agreement, in addition to constituting a breach of contract, shall
constitute a violation of this Article.
(b) The cost of any litigation incurred by the Town to enforce this Article or the franchise granted pursuant hereto, or
the franchise agreement, or in relation to the cancellation or termination of a franchise, shall be reimbursed to the
Town by the franchisee. Such cost shall include filing fees, costs of depositions, discovery and expert witnesses, all
other expenses of suit, and reasonable attorney fees.
Section 4. State of the Art
Each franchisee shall upgrade its facilities, equipment and service so that its system is as advanced as the current
state of production technology will allow. Each franchisee shall install additional transmission capacity as required to
keep channel capacity in excess of the demand therefore by users. At all times, each cable system shall be no less
advanced than any other system of comparable size, excepting only systems which are experimental, pilot or
demonstration. The Town Council shall order a franchisee to comply with this section in case of specific violation, which
it may investigate upon complaint or on its own motion.
Section 5. Use of Channels
The franchise is encouraged to employ a program and production consultant to promote public use of the access
channels and to advise such public users.
Section 6. Public Service Installation
The franchisee shall, without charge for installation, maintenance, or service, make single installations of its
standard community antenna service facilities at each fire and police station, public school, Town Hall, and all public
libraries, Rescue Squad building, recreation centers, and other Town facilities. Such installations shall be made at such
reasonable locations as shall be requested by the respective units of government or educational institutions. Any
charge for relocation of such installations shall, however, be charged at actual cost. Additional installations at the same
location may be made at cost plus ten percent (10%). No monthly service charges shall be made for distribution of the
franchisee’s signals within such publicly owned buildings.
Section 7. Interconnections
The franchise shall, at the request of the Town Council, interconnect its cable system with all other contiguous cable
systems, and the franchisee may interconnect with any other system or service.
Section 9. Construction Standards and Requirements
(a) Initial construction of this system shall commence within ninety (90) days of the execution of the franchise
agreement or of F.C.C. certification, whichever occurs later.
(b) All of the franchisee’s plant and equipment including but not limited to, the antenna site, head-end and
distribution system, towers, house connections, structures, poles, wire, cable, coaxial cable, fixtures and
appurtenances shall be installed, located, erected, constructed, reconstructed, replaced, removed, repaired,
maintained and operated in accordance with good engineering practices, performed by experienced pole line
construction crews and so as not to endanger or interfere with the safety of any person or property, or to interfere with
improvements the municipality may deem proper to make, or to interfere in any manner with the right of any property
owner, or to unnecessarily hinder or obstruct pedestrian or vehicular traffic on municipal properties. Further, all such
plant and equipment and all construction shall meet all relevant specifications of the Federal Communications
Commission, and other applicable Federal, State and Local regulations.
(c ) Any opening or obstruction in or disturbance of the streets, public ways, or other municipal properties made by
the franchisee in the exercise of its rights under a franchise agreement shall be done in compliance with Town
ordinances which regulate work in the public ways of the Town, except than any bond requirements therein may be
waived in cognizance of the bond requirements of this Article. Further, the Town shall require the franchisee to install
or relocate the cable system underground in the Town where other public utilities have been or will be installed
underground.
(d) The franchisee shall, at its expense, protect, support, temporarily disconnect, relocate in the same street or
other public place or municipal property, or remove from the street or other public place or municipal property, any
property of franchisee when required by the Town Council or its designee by reason of traffic conditions, public safety,
street excavation, freeway and street construction, change or establishment of street grade, installation of sewers,
drains, water pipes, power lines, signal lines, and tracks, or any other type of structures or improvements by public
agencies.
(e) The franchisee shall, on the request of any private party holding an appropriate permit issued by the Town,
temporarily raise or lower its lines to permit the moving of any building or other structure, and the actual expense of the
same shall be paid by the party requesting the same.
(f) Upon failure of the franchisee to commence, pursue, or complete any work required by law or by the provisions of
this Chapter to be done in any street or other public place or municipal property, within the time prescribed, and to the
satisfaction of the Town Council or its designee, the Town Council or its designee may, at its option, cause such work
to be done and the franchisee shall pay to the Town the cost thereof in the itemized amounts reported by the Town
Council or its designee to the franchisee within thirty (30) days after receipt of such itemized report.
Section 10. Buildings and Apartments
The subscriber rates and charges imposed by the franchisee with respect to service to multi-family units shall not be
increased or affected either directly or indirectly by reason of any payment of payments which the franchisee may
make to the owner of any multiple family unit or any other person for the privilege of installing service or access to such
multi-family units.
Section 11. Repair
Any damage caused to the property of building owners or users or any other person by the franchisee’s negligence
shall be repaired fully by the franchisee.
Section 12. Removal of Facilities Upon Request
Upon termination of service to any subscriber, the franchisee shall promptly remove all its facilities and equipment
from the premises of such subscriber upon his request.
Section 13. Transfer of Ownership
Any franchise awarded under this Article shall not be sold, transferred, leased, assigned or disposed of in whole or
in part, either by forced or involuntary sale or by voluntary sale, merger, consolidation or otherwise, without the prior
consent of the Town Council expressed by resolution, which consent shall not be unreasonably withheld, and then only
under such reasonable conditions as may therein be prescribed, and under no circumstances shall the said franchise
be transferred, leased, assigned, or disposed of during the first year after its issuance unless or until construction and
extension of service to twenty-five (25%) of the residences within the franchise area has been completed. In addition,
the successor as approved by the Town Council shall comply with the terms of this Ordinance with respect to filing
acceptance bonds and insurance and shall show that it is financially responsible. Any such sales, transfer, lease,
assignment, or disposal shall be made only by an instrument in writing, a duly executed copy of which shall be filed in
the office of the Town Manager or Clerk within thirty (30) days. Provided, however, the provisions of this subsection
shall not apply to a transfer in trust, mortgage or other hypothecation to secure an in-debt-ness.
Section 14. Town’s Right of Intervention
The franchise shall not oppose intervention by the Town in any suit or proceeding to which the franchisee is a party.
Section 15. Discriminatory or Preferential Practice
The franchisee shall not, in its rates or charges, or in making available the services or facilities of its system, or in its
rules or regulations, or in any other respect, make or grant preferences or advantages to any subscriber or potential
subscriber to the system, or to any user or potential user of the system; and shall not subject any such persons to any
prejudice or disadvantage.
Section 16. Open Access
The entire system of the franchisee shall be operated in a manner consistent with the principle of fairness and equal
accessibility of its facilities, equipment channels, studios, and other services to all citizens, businesses, public
agencies, or other entities having a legitimate use for the system. No one shall arbitrarily excluded from its use.
Allocation of use of said facilities shall be made according to the rules or decisions of regulatory agencies affecting the
same, and where such rules or decisions are not effective to resolve a dispute between conflicting users or potential
users, the matter shall be submitted for resolution by the Town Council.
Section 17. Maintenance Personnel and Service
(a) The franchisee shall maintain a force of agents or employees to provide safe, adequate and prompt service of its
facilities.
(b) In addition, the franchisee shall maintain a convenient location in the Town during normal business hours for the
receipt of sums due by its subscribers and the processing of complaints by subscribers; shall provide for regular billing
or accounts; and shall maintain a maintenance service which shall be promptly available to subscribers twenty-four
(24) hours a day upon telephone request; and further, shall maintain a toll free phone line available to all persons for
contacting franchisee from Holly Ridge.
Section 18. Emergency Use of Facilities
(a) The franchisee shall in the case of any emergency or disaster, make its entire system available without charge to
the Town or to any other governmental or civil defense agency that the Town shall designate.
(b) The system shall be engineered to provide an audio alert system to allow authorized officials to automatically
override the “audio” signal on all channels and transmit and report emergency information.
Section 19. Permits and Authorizations
The franchise or applicant for franchise shall diligently apply for all necessary permits and authorizations required in
the conduct of its business, and necessary pole attachment contracts, and necessary authorizations from the Federal
Aviation Agency to construct such receiving antenna towers as may be required, and any necessary authorizations or
waivers from the Federal Communications Commission, and when any such permit, authorization contract or waiver is
obtained, a copy thereof shall be promptly filed by the franchisee with the Town Council. After the franchisee has
diligently pursued the acquisition of necessary pole attachment contracts, or other necessary easements, and where
such necessary contracts have not been entered or easements obtained after a reasonable period of time, the
franchisee may submit the matter to the Town Council and the Town Council will thereupon provide assistance that
may be necessary to arrive at a solution so that the scheduled construction of the system will not be impaired.
Section 20. Reports
(a) Each franchisee shall file with the Town Council quarterly reports of gross subscriber revenues by an officer of
the franchisee and prepared in accordance with regulations of the Town Council. Each franchisee shall also allow the
Town Council to audit all of its accounting and financial records upon reasonable notice; and, in the event of a dispute
regarding the operation of its business in the Town, make available all of its plans, contracts and engineering,
statistical, customer and service records of all relating to its system and all other records required to be kept
hereunder; and at all times keep and maintain complete and accurate books of account, records of its business and
operations, and all other records required by this Article or the franchise agreement.
(b) Each franchisee shall file annually with the Town Council an ownership report, indicating all persons who at any
time during the preceding year did control or benefit from an interest in the franchise of one percent (1%) or more and
all creditors, secured and unsecured, in excess of One Thousand Dollars ($1,000.00).
(c ) Each franchisee shall also file annually with the Town Council copies of all rules, regulations, terms and
conditions which it has adopted for the conduct of its business.
(d) Each franchisee shall annually file with Town a detailed plan (map) of its Local System.
Section 21. Termination
In the event the grantee shall be adjudicated, bankrupt or placed in receivership, or make an assignment for the
benefit of its creditors, or any foreclosure of any mortgage or deed of trust upon its property shall be commenced, or
any other insolvency proceedings, either voluntary or involuntary, against the franchisee shall be commenced, the
Town Council may declare this franchise grant immediately terminated and in that event, all the rights, privileges, and
authority of the franchisee grant be considered an asset of the bankrupt estate or receivership, nor shall the
franchisee have any authority to mortgage, assign, pledge or deposit this franchise agreement as security for any loan
or any other thing without the express formal approval in advance of the Town Council.
Section 22. Safety and Nuisance Requirements
The franchisee shall at all times employ ordinary care and shall install and maintain in use commonly accepted
methods and devices preventing failures and accidents which are likely to cause damage, injury or nuisance to the
public.
Section 23. New Developments
The Town Council, at the request of the franchisee may amend this Article or the franchise agreement whenever
necessary to enable the franchisee to take advantage of any developments in the field of transmission of
communication signals which will afford it an opportunity to more effectively, efficiently or economically serve its
customers: Provided, that this section shall not be construed to require the Town to make any such amendment.
Section 24. Insurance; Bonds; Indemnification
(a) Liability and Indemnification. The franchisee shall indemnify and hold harmless the Town at all times during
the term of the franchise granted hereby and specifically agrees that it shall pay all damages and penalties which the
Town may be legally required to pay as a result of granting the franchise. Such damages and penalties shall include,
but not limited to, damages arising out of copyright infringements, and other damages arising out of the installation,
operation or maintenance of the CATV system authorized herein, whether or not any act of omission complained of is
authorized, allowed, or prohibited by the franchisee. In case suit shall be filed against the Town either independently or
jointly with the franchisee to recover for any claim or damages, the franchisee upon notice to it by the Town shall
defend the Town against the action and, in the event of a final judgment being obtained against the Town, either
independently or jointly with the franchisee solely by reason of the acts of the franchisee, the franchisee shall pay said
judgment and all costs and hold the Town harmless there from.
(b) Performance Bond. The franchisee shall, concurrently with its acceptance of the franchise, file with the Town
Clerk, at franchisee’s sole expense, a corporate surety bond in a responsible company licensed to do business in
North Carolina in the amount of five percent (5%) of the total cost of plant, equipment and installation of any system
licensed hereunder, conditioned upon the faithful performance of the franchisee to have service to twenty-five (25%)
percent of the residents of the Town within twelve (12) months of receipt of F.C.C. Certificate of Compliance if required,
otherwise, from the date the franchise is granted, to have service to fifty percent (50%) of the residents of the Town
within two (2) years thereof, and to have service to all residents of the Town within three (3) years thereof. Upon
successful completion of service to said twenty-five percent (25%) of the residents of the Town within the prescribed
twelve (12) month period, to fifty percent (50%) within the prescribed two (2) year period, and to all within the
prescribed three (3) year period, this bond shall be canceled.
(c ) Insurance.
(1) The franchisee shall be required to maintain insurance in such forms and in such companies as shall be
approved by the Town, such approval not to be unreasonable withheld, to protect the Town and the franchisee from
and against any and all claims, injury or damage to persons or property, both real and personal caused by the
construction, erection, operation or maintenance of any aspect of the system. The amount of such insurance shall not
be less than the following:
(A) General Liability insurance:
Bodily injury per person………………$500,000
Bodily injury per occurrence…………..$1,000,000
Property damage per occurrence……….$1,000,000
Property damage, aggregate……………$1,000,000
(B) Automobile Insurance:
Bodily injury per person……………….$500,000
Bodily injury per occurrence…………..$1,000,000
Property damage per occurrence……….$1,000,000
(2) Workmen’s compensation insurance shall also be provided as required by the laws of the State.
(3) All such insurance coverage shall provide a ten (10) day notice to the Town Manager in the event of material
alteration or cancellation shall become effective.
(4) Copies of all policies required hereunder shall be furnished to and filled with the Town Manager prior to the
commencement of operations or the expiration of prior policies, as the case may be.
(D) Non-waiver. Neither the provisions of this Section, nor any bonds accepted by the Town pursuant thereto, nor any
damages recovered by the Town there under shall be construed to excuse unfaithful performance by the franchisee or
limit the liability of the franchisee under this Article or the franchise for damages, either to the full amount of the bond,
or otherwise.
Section 25. Operational Standards
The technical standard for operation of the system shall. In addition to meeting the requirements specified in this
Article, conform to all further requirements specified in the franchise agreement which is to be in conformance with the
request for proposal, and any other standards or codes therefore as may be adopted by the Town Council.
ARTICLE 14-4
SUBSCRIBER RATES, CHARGES AND REFUNDS
Section 1. Limitations on Rates
The charges made to subscribers for services of the franchisee hereunder shall be fair and reasonable and no
higher than necessary to meet all costs of the service (assuming efficient and economical management), and provide a
fair return on the original cost, less depreciation, of the properties devoted to such service (without franchisee shall
receive no consideration whatsoever from its subscribers for or in connection with its service to its subscribers other
than in accordance with this Article, without approval of the Town Council.
Section 2. Adjustment to Rates
The Town Council shall have the power, authority and right to cause the franchisee’s rates and charges to conform
to the provisions of the previous section “Limitations” and for this purpose after a public hearing affording proper
notice to the franchisee and any other interested parties, it may deny increases or order reductions in such rates and
charges when it determines that in the absence of such action on its part, the franchisee’s rates and charges or
proposed increased rates and charges will not conform to the section on Limitations.
Section 3. Rate Schedule
An applicant for a franchise shall include in its proposal rates and charges which shall be approved by the Town
Council and shall not be increased without approval of the Town Council.
Section 4. Advance Charges
The franchisee shall be permitted to require advance payment for installation fees and for one (1) month’s advance
subscriber fee. The franchise shall require no other deposit, advance payment, or penalty from approval of the Town
Council.
Section 5. Refunds to Subscribers
If any subscriber terminates service because of the franchisee’s failure to render service to such subscriber of a
type and quality, and in the manner provided for herein, or because the franchisee ceases to operate the system
authorized herein for any reason except expiration of the franchise, the franchisee shall refund to such subscriber a
portion of the initial connection charges which corresponds to the fraction obtained by dividing the number of months
of service received by the subscriber by twelve (12).
Section 6. Other Governmental Regulation of Rates
If, in the future, the State of North Carolina or the United States Government or any regulatory agency thereof
regulates the rates of the franchisee for the service provided for in the franchise, this Article shall be of no effect
during such regulation to the extent of any conflict therewith.
Section 7. Enforcement
(1) Non-Enforcement not Estoppels. The franchisee shall not be relieved of its obligation to comply promptly with
any of the provisions of the franchise by any failure of the Town to enforce prompt compliance.
(2) Violators. All persons including officers of any franchisee, causing, participating in, or permitting any violation of
any provision of this Article shall be severally or jointly liable therefore.
(3) No Recourse Against Town. The franchise shall have no recourse whatsoever against the Town or its officers,
boards, commissions, agents, or employees for any loss, cost expense or damage arising out of any provision or
requirement of this franchise or because of its enforcement; provided that noting contained in this section shall relieve
that Town of its obligations under the terms of any franchise agreement entered into hereunder.
Section 8. Severability
If any section, sub-section, sustenance or clause, phrase or portion of this franchise ordinance, or any franchise
agreement granted hereunder shall be declared unconstitutional, invalid under any State or Federal Law or regulation,
or inconsistent with the regulations of the F.C.D. all other provisions shall retain their full force and effect.
Section 9. Effective Date
This ordinance shall become fully effective and enforceable upon lawful adoption by the Town Council.
(The original was adopted on September 1, 1981 and on file.)
ORDINANCE NO. 14-5
AN ORDINANCE TO PROVIDE FOR THE REGULATION OF BASIC TIER RATES
AND RELATED EQUIPMENT, INSTALLATION AND SERVICE CHARGES OF
ANY CABLE TELEVISION SYSTEM OPERATING IN THE TOWN OF HOLLY
RIDGE.
WHEREAS, on October 5, 1992, congress enacted the Cable Television Consumer Protection and Competition Act
of 1992 which, among other things, provided that the basic service tier rates, and the charges for related equipment,
installation and services, of a cable television system(hereinafter, “basic service rates and charges”) shall be subject to
regulation by a franchising authority in accordance with regulations prescribed by the Federal Communications
Commission (hereinafter the “FCC”): and,
WHEREAS, on April 1, 1993, the FCC prescribed such regulations in the Report and order, in the Matter of
Implementation of Sections of Cable Television Consumer Protection and Competition Act of 1992: Rate Regulation,
MM Docket 92-266, FCC 93-177 (released May 3, 1993) (hereinafter, the “FCC Rate Regulations”) and,
WHEREAS, the Town of Holly Ridge (hereinafter, the “Town”) is a franchising authority with the legal authority to
adopt, and the personnel to administer, regulations with respect to the Basic Service Rates and Charges of any cable
television system operating in the Town, including, without limitation, the system currently being operated by Falcon
Cable Media (hereinafter “the company:) pursuant to Article 14 of the Ordinances of the Town of Holly Ridge
(hereinafter the “Franchise”); and,
WHEREAS, the Town desires to regulate the Basic Service Rates and Charges of the company and any other cable
television system operating in the Town and shall do so in accordance with the FCC Rate Regulations,
notwithstanding any different or inconsistent provisions in the Franchise;
THEREFORE BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF HOLLY RIDGE, THAT:
1. The Town will follow the FCC Rate Regulations in its regulation of the Basic Service Rates and Charges of the
company and any other cable television system operating in the Town, notwithstanding any different or inconsistent
provisions in the Franchise; and,
2. In connection with such regulation, the Town will ensure a reasonable opportunity for consideration of the views of
interested parties; and,
3. The Town Manager, or his or her designee, is authorized to execute on behalf of the Town and file with the FCC
such certification forms or other instruments as are now or may hereafter be required by the FCC Rate Regulations in
order to enable the Town to regulate Basic Service Rates and Charges; and,
4. This Ordinance shall be effective immediately.
TOWN OF HOLLY RIDGE
ORDER EXTENDING THE TIME FOR DECISION APPROVING/DISAPPROVING THE PROPOSED CABLE RATES FOR
BASIC PROGRAMMING SERVICE, INSTALLATION AND EQUIPMENT WITHIN THE FRANCHISE AREA OF THE TOWN
OF HOLLY RODGE, NORTH CAROLINA BY FALCON CABLE MEDIA
WHEREAS, the Town of Holly Ridge has been duly certified to regulate basic cable rates for Falcon Cable Media
within the municipal limits of the Town of Holly Ridge in its franchised area of the Town of Holly Ridge; and
WHEREAS, on February 23, 1996, Falcon requested approval for a rate increase of basic cable programming
services and associated equipment and installation charges by filing Federal Communication’s Commission Forms
1205 and 1210 for service area identified as NC0427; and
WHEREAS, the franchising authority has 30 days in which to make a decision on the Falcon request; and
WHEREAS, pursuant to agreement, Custom Communication, a telecommunications advisory partnership, located in
Kernersville, North Carolina has examined the filings known as FCC Forms 1205 and 1210 for the Town of Holly Ridge;
and
WHEREAS, by action dated March 20, 1996 the Town of Holly Ridge advised Falcon, that the information submitted
to justify its requested rates was insufficient for that purpose, and requested that Falcon supply additional information
from which a rate determination could be made; and
WHEREAS, FCC 93-177, MM Docket NO. 92-266, adopted April 1, 1993, states that if the franchising authority is
unable to determine, based upon the material submitted by the cable operator, that the existing or proposed rates
comply with the FCC permitted charges or it the operator has submitted a cost-of-service showing, the franchising
authority may extend the 30 day deadline and direct the cable operator to account for all funds above the permitted
rates;
BASED UPON THE FOREGOING, the franchise authority of the Town of Holly Ridge does hereby extend the date for
decision on the proposed rates submitted by Flacon Cable Media for a period of 150 days; order that existing cable
charges for basic cable service and associated equipment and installation charges remain in effect; and order Falcon
Cable Media to keep an accurate account of all amounts received by reason of the rate in issue and on whose behalf
such amounts are paid.
THIS ORDER IS EFFECTIVE THE DAY OF MARCH, 1996
ADOPTED BY THE BOARD OF COMMISSIONERS OF THE TOWN OF HOLLY RIDGE
This the Day of March, 1996.