Ordinance Number 166

This agreement entered into as of August 6, 1985, Between the Town of Deer Trail Colorado ("Town") and Skyline Cablevision Inc. ("SCI"), A Colorado Corporation.

I. Grant of Non-Exclusive Revocable Permit

  1. The Town hereby grants to SCI a non-exclusive revocable permit for the right and privilege to construct, erect, operate and maintain, in, upon, along, across, above, and under the public easements, streets, alleys, public ways and public places in the Town, and all extensions thereof, and additions thereto, wires, cables, underground conduits, and other television conductors and fixtures necessary for the maintenance and operation in the Town of a CATV system for the interception, origination, sale and distribution of television, radio and other communication signals for a period of ten (10) years from the date of this Permit. SCI shall not interfere with others use of public easements, streets, alleys, public ways and public places. Location of cables to be approved by the Town prior to installation. SCI shall have the option to extend the term of this agreement on the same terms an additional ten (10) years by providing written notice of such extension to the Town ninety (90) days in advance of the end of the initial term, but not withstanding the foregoing, such extension shall not be effective if the Town provides notice to SCI within thirty (30) days after receipt of SCI's notice, that the performance of SCI in fulfilling all terms of this agreement has been unsatisfactory to the Town. At any time during the term of this franchise, if the Town feels that the performance of SCI is unsatisfactory, the Town shall advise SCI of such unsatisfactory performance in writing and Skyline shall have thirty (30) days to respond. If the matter is not resolved to the satisfaction of both parties, either party shall have the right to request review of the matter by any court of competent jurisdiction.

II. Liability and Indemnification

  1. Permittee shall at all times protect and hold harmless the Town from all claims, actions, suits, liability, loss, expense or damages of every kind and description, including investigation costs, court costs, and attorney's fees, which may accrue to or be suffered or claimed by any person or persons arising out of acts or omissions of Permittee in the ownership, construction, repair, replacement, maintenance and operation of said cable television system and by reason of any license, copyright, property right or patent of any article or system, or any other suit or claim of any nature arising out of the construction operation, or use of said system.
  2. Permittee shall maintain in full force and effect during the life of any permit public liability insurance in a solvent insurance company authorized to do business in the State of Colorado, at no less than in the following amounts:
    • Five Hundred Thousand Dollars ($500,000) for bodily injury or death to any person, within the limit, however, of One Million Dollars ($1,000,000) for bodily injury or death resulting from any one accident.
    • Five Hundred Thousand Dollars ($500,000) for property damages resulting from any one accident.
    • One Million Dollars ($1,000,000) for all other types of liability.
  3. Certificates evidencing such coverage shall be filed and maintained with the Town during the term of this Permit. The Town shall be a named insured.

III. Payment to the Town

SCI shall pay to the Town annually within thirty (30) days of the end of each calendar quarter, five percent (5%) of its gross service revenues from subscribers within the Town. Gross service revenues shall be all revenues of SCI from subscribers in the Town. There shall be deducted from gross monthly service revenues an amount equal to payment from SCI to suppliers of television service programming, such as Home Box Office and ESPN. This payment is for the use of the Town public rights-of-way and easements, and for the Town supervision of SCI's operations in the Town. SCI shall also reimburse the Town for legal fees and other costs incurred En developing this franchise, not to exceed $1,000.00.

For the purpose of auditing and the correct amount to be paid under the provisions of this paragraph, the Town Clerk shall have access to the books of SCI pertaining to the Town for the purpose of checking the gross monthly service revenues received from operation in the Town.

 SCI shall file annually with the Town Clerk, not later than forty-five (45) days after the end of SCI's fiscal year, an income statement devoted to cable operation in the Town.

IV. Rates

Subscriber rates in the Town will not increase for a period of eighteen (18) months from the date this Permit is granted except that any rates may be raised by an amount equal to the increased charges to SCI by suppliers of programming material. Beginning rates shall be as set forth in Exhibit A attached hereto. Minimum services as set forth in Exhibit B shall be provided at all times. Notice and justification for changes in rates and charges shall be filed with the Town at least forty-five (45) days in advance of the effective date thereof.

V. Carriage of Signals

All FCC regulations shall be complied with regarding the carriage of the programming of any existing or future television broadcasting station which covers the Town in its principal broadcasting area. SCI's designed distribution system shall be capable of carrying forty-four (44) channels of trunk cable construction.

VI. Maintenance and Repair

The cable system shall be operated and maintained so that the subscribers in the Town receive signals of good technical quality. SCI will maintain a phone number on a 24-hour basis, free of charge, so maintenance service may be readily available. When trouble is analyzed as the loss of reception on all channels and affecting more than one customer, a serviceman will be dispatched within twenty-four (24) hours. Individual customer problems will be cleared within 5 working days.

VII. Contact Person

The Operations Manager of SCI will be the person for the Town to contact regarding any questions or problems related to the system.

VIII. Service to School and Town

SCI shall provide one outlet, receiving basic service only, to each public school, parochial school and Town office within SCI's service area in the Town for educational and governmental purposes, at no cost. Thereafter, each additional service outlet shall be installed at a cost of time and material only.

IX. Emergency Use of Facilities

In the case of any County, State, Local or National emergency or disaster, SCI shall, upon request of the Town Board, its Bonafide representatives, or Town Official, make available its facilities to the Town for emergency use during the emergency or disaster period.

X. Construction

SCI will extend its service to residents of the Town in contiguous areas that have a density of at least forty (40) subscribers per mile.

SCI shall directly pursue construction of the CATV system, but if by reason of force majeure it is unable, in whole or in part, to carry out its obligations under this Permit, it shall not be deemed in default during the continuation of such inability and shall have a reasonable time after the removal of the inability to perform. The term "force majeure" shall mean, without limitation, the following: acts of God, strikes, lockouts or other industrial disturbances, acts of public enemies, orders of any Government of the United Stator the State of Colorado, or any of their departments, commissions, agencies, or officials, failure of vendors to supply equipment on a timely basis, weather, and any other cause or event not reasonably within control of SCI.

XI. This Permit 

This permit shall be binding upon and inure to the benefit of SCI, its successors and assigns. No assignment without prior written approval of the Town, such approval to not be unduly withheld. Any notice given pursuant to this Permit shall be delivered to the following addresses. Notice shall be by certified mail.

Town of Deer Trail 
P.O. Box 217 
Deer Trail, Colorado 80105 

Skyline Cablevision Inc.
P.O. Box 110279
Aurora, Colorado 80011

XII. If the Operator (SCI) forfeits

If the Operator (SCI) forfeits the franchise or if the franchise expires, the Town shall have the first right of refusal to purchase the system on the same terms as a third party, said right to be exercised within fourteen (14) days after receipt of written notice. In any event, SCI shall operate the system for a period of six (6) months from the date of first service.

XIII. Acceptance

By acceptance of this grant of francise, SCI agrees not to challenge any of this franchise as invalid, voidable or otherwise beyond the authority of the municipality.

Town of Deer Trail by Mark Dille, Mayor

Attest: Tam M. Intermill 

Accepted Skyline Cablevision Inc. by Carl M Ochionero, President 

Exhibit A

1. Connection Fees

Initial Residence outlet: $20.00

Additional Residence Outlet: $10.00

Reconnection: $10.00

Reconnection, if disconnected for non-payment:$25.00

Relocation of an Outlet: $15.00

Commercial outlets will be handled on an individual basis.

2. Monthly Rates

Basic: $8.95

Premium Service: $9.00

Additional Outlet: $2.50

Exhibit B

  1. SCI will initially provide twelve (12) channels of diverse programming for the customers' viewing pleasure. Six channels will be the presently received off-air channels. The other six channels will carry satellite programming, five channels on the basic service and one premium channel. The specific satellite channels to be carried will be determined after completion of the survey of the residents of the Town.
  2. The following television channels are the presently received off-air channels and are required to be carried on the cable television system.

KWGN - Independent - Denver
KCNK - NBC - Denver
KRMA - PBS - Denver
KMGH - CBS - Denver
KUSA - ABC - Denver
KDVR - Channel 31 - Denver (UHF)