Ordinance 786
ORDINANCE NO. 786
AN ORDINANCE AMENDING SECo 24048 OF THE GILROY
CITY CODE BY PROVIDING THAT THE BOND REQUIRED
OF A GRANTEE OF COMMUNITY ANTENNA TELEVISION
SYSTEMS FRANCHISE INSTEAD OF BEING FOR THE EN-
TIRE TERM OF THE FRANCHISE MAY BE RENEWED AN-
NUALLY AND FURTHER PROVIDING THAT THIS IS AN
EMERGENCY ORDINANCE TO BE EFFECTIVE UPON ITS
ADOPTION FOR REASONS SET FORTH IN THE ORDINANCE.
THE COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS:
SECTION I.
Sec. 24048 Bond Required.
(a) The grantee shall, within twenty-five (25) days
after the effective date of the Ordinance award-
ing the franchise, file with the City Clerk, and
at all times thereafter maintain in full force
and effectfDr the term of such franchiser at
grantee1s sole expense, a corporation surety
bond in a company approved bYr and in a form to
be approved bYI the City Attorney, in the amount
of $501000.001 renewable annuallYt and conditioned
upon the faithful performance of grantee, and upon
the further condition that in the event grantee
shall fail to comply with anyone or more of the
~rovisions of this Ordinance, or of any franchise
1ssued to the grantee hereunder, there shall be
recoverable jointly, and severally from the prin-
cipal and surety of such bond any damages or loss
suffered by the City as a result thereofl including
the full amount of any compensation, indemnifica-
tionz or cost of removal or abandonment of any
property of the grantee as prescribed hereby which
may be in default, plus a reasonable allowance for
attorney1s fees and costs, up to the full amount
of the bond; said condition to be a continuing ob-
ligation for the duration of such franchise and
thereafter until the grantee has liquidated all of
its obligations with the City that may have arisen
from the acceptance of said franchise by the grantee
or from its exercise of any privilege therein granted.
The bond shall provide that thirty (30) days I prior
written notice of intention not to renew, concella-
tionl or material changel be given to the City.
(b) Neither the provisions of this section, or any bond
accepted by the City pursuant thereto, nor the
recovery by the City of any damages shall be con-
strued to excuse faithful performance by the grantee
of all obligations which he may have under this'
article or under such franchise, nor excuse or limit
the grantee1s liability for any damages, either to
the full amount of the bond or otherwiseo
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SECTION II.
This is an emergency Ordinance and shall take effect im-
mediately upon its adoption and approvali the reasons for the
existence of such an emergency are as follows:
That the City Council after due proceedings had therefor
in accordance with Ordinance No. 759 as set forth in Article
III, Chapter 24 of the Gilroy City Code has by Ordinance award-
ed a franchise for the term of twenty-five (25) years to one of
the applicants therefor, and Seco 24.48 of the Gilroy City Code
as now written requires before the franchise is effective the
grantee of the franchise, within twenty-five (25) days from and
after the effective date of the Ordinance awarding the franchise
or within such extended period as the Council may authorize, shall
file with the City Clerk and at all times thereafter maintain in
full force and effect an acceptable corporate surety bond in dup-
licate in the amount of Fifty Thousand Dollars effective for the
entire term of the franchise and conditioned as set forth in said
Section of said Ordinance and no bonding company will issue a bond
to be effective and in force for the entire period of twenty-five
(25) years and in order that the franchise can be made effective
and in force and the people of the City of Gilroy provided with
the benefits and enjoyment of a Community Antenna Television Sys-
tem and the grantee of the franchise secure any benefits there-
from or commence any operations thereunder, it is necessary that
the said Seco 24.48 of the said Gilroy City Code be amended so
that the bond required may run for a shorter period than the term
of the franchise and may be renewable annually and thus a bond be
in effect at all times during the term of the franchise, but not
necessarily the same bondr and without said amendment the said
franchise will be valueless and inoperative and the people of Gil-
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roy be deprived of the benefits of a Community Antenna Tele-
vision System because no bonding company will issue the bond
as now required by the said Seco 24048.
SECTION IIIo
All Ordinances and parts of Ordinances in conflict here-
with are hereby repealed.
This Ordinance was introduced at a regular meeting of the
City Council held on the 16th day of January, 1967, passed and
adopted and to be effective immediately as an emergency Ordin-
ance and ordered published by title and summary in accordance
with the Charter of the City of Gilroyo
AYES: COUNCILMEMBERS: All emand, Duff in, Eckard,Goodri ch ,Quarti ro 1 i,
Wentworth, and Petersen.
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
APPROVED:
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'f-~< I/'~"--L-C?--<-_-'<..A...........
) Mayor
ATTEST:
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(:) '2 t?lii,1t.JU) t / c:<{.~t1~/
City Clerk /'
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I, SUSANNE E. PAYNE ,City Clerk of
the City of Gilroy, do hereby certify that the attached Ordinance
No. 786 is an original ordinance, duly adopted by the Council
of the City of Gilroy at a regular meeting of said Council held on
the 16th day of January ,1967, at which meeting
a quorum was present.
further certify that the said ordinance has been pub-
lished in accordance with the charter of the City of Gilroy.
IN WITNESS WHEREOF, I have hereunto set my hand and af-
fixed the official seal of the City of Gilroy, this 17th day of