City Accepts Voluntary Termination of Brownwood TV Cable Service's Franchise

October 27, 2009 at 7:50 pm brownwoodnewsstaff

Business

BrownwoodTVCable The City of Brownwood today accepted the voluntary forfeiture and termination of the Brownwood Television Cable Service (BTCS) franchise agreement as a result of the TV service closing its doors last month.

In late September, Brownwood TV Cable’s General Manager Karen McMillan sent a letter to the city offering voluntarily termination and forfeiture of the Cable Television Franchise Agreement. The city sent a letter to McMillan in response outlining the city’s terms for this termination which the former cable company signed and agreed to. The Brownwood City Council accepted this signed letter on Tuesday.

The terms of the termination and forfeiture are as follows:

1) BTCS agrees to voluntarily forfeit and terminate the Agreement and all rights thereunder to occupy the City’s rights-of-way and to provide cable television service to the citizens of Brownwood effective immediately, September 14, 2009;

2) BTCS agrees to remove its poles, wires and other cable television equipment from the City’s rights-of-way as soon as practicable, but in no event later than one hundred eighty days (180). Notwithstanding the foregoing, BTCS shall remove all poles, wires and cable television equipment designated by the City as structurally unsound, hazardous or unsafe (“unsafe equipment”), immediately. In the event that BTCS has been diligently removing its poles, wires and other cable television equipment from the City’s rights-of-way, but has not completed this work within 180 days, the City will grant an extension, not to exceed ninety (90) days, to remove all the poles, wires and cable television equipment. In lieu of removing all the poles, wires and cable television equipment (except unsafe equipment)9 the City will accept an agreement or bill of sale’ signed by an authorized representative of another cable television franchisee and/or a public utility operating in Brownwood wherein that company agrees to take responsibility for some or all of the poles, wires and/or cable television equipment.

3. BTCS shall pay all late franchise fee payments due under the Agreement, including interest for late fees, no later than September 18, 2009. All franchise fee payments due for the third quarter and/or received by BTCS following the third quarter shall be paid by October 2, 2009. The City has
received your franchise fee payments due under the agreement for the second quarter, including interest for late fees, and your franchise fee payment for the third quarter.

4. BTCS agrees that the City may draw down the LOC in the amount of $7,500.00 for the substantial breach of the Agreement in not providing continuous cable television service as required by the Agreement and Ordinance. BTCS shall receive the remaining $7,500.00 from the LOC and/or may cancel the LOC following the City’s draw down in the amount of $7,500.00. The City will not refund any of the funds received by the City from the LOC.