ORDINANCE NO: 1996-135 (Bill No. 0023) "AN ORDINANCE GRANTING THE DIVINE MERCY CABLE TELEVISION AND FM RADIO NETWORK (DMCTV-FM), INCORPORATED, AN OPEN FRANCHISE TO INSTALL, OPERATE AND MAINTAIN CABLE TELEVISION FACILITY IN THE CITY OF PAGADIAN" BE IT ORDAINED BY THE SANGGUNIANG PANLUNGSOD OF THE CITY OF PAGADIAN THAT: ARTICLE I. An open Franchise is hereby granted to the Divine Mercy Cable Television and FM Stereo Radio Network (DMCTV-FM), Incorporated, hereinafter referred to as the Grantee, to construct, install, operate and maintain a Cable Television System in the City of Pagadian, subject to the following terms and conditions, to wit: SECTION 1. This Open Franchise shall be for a period of Twenty (20) years, counted from hereon with the option on the part of the Grantee to renew the same, with the approval of the Sangguniang Panlungsod, for the same period of years at the option of both parties; PROVIDED, that in the event that the operation of the service would turn out to be financially unprofitable to the Grantee and that there is satisfactory proof of its difficult financial position, then it may effect discontinuance of the service within at least three (3) months. Written notices to the City Mayor, the Sangguniang Panlungsod, and the subscribers must be made. Furthermore, termination of services should be aired on the Cable Television System. Any cessation of service shall not release the Grantee from whatever obligation arising from any contract or agreement it may have entered into with the subscribers. All legal proceedings must be made in Pagadian City. SECTION 2. The Grantee shall provide efficient, quality and wholesome service by furnishing at least thirty-two (32) channels of different programs - local and international - with particular concern on the following specific limitations in the conduct of its day to day television programming: The showing of "cartoons" shall be regulated so as not to disturb or divert the attention of school-age children from their classes or schoolwork. All shows must not offend morals and decency nor violate any religious belief. SECTION 3. The community antenna and the trunk cable from the community antenna to the City of Pagadian area, as shown in the plan of cable distribution shall be filed with the Office of the City Engineer within ten (10) months. SECTION 4. All taxes due to the City Government of Pagadian shall be collected in accordance with the rates fixed in the existing City Revenue Ordinances and such other applicable tax measures that shall be enacted by the Sangguniang Panlungsod in the future. SECTION 5. The right-of-way over all City properties is hereby granted for the installation of the Grantee's structures, cables and such other accessories necessary for its operation, including the right to attach to all City facilities; PROVIDED, that these structures, cables and such other accessories will not prejudice existing services, impair or obstruct the implementation of future development plans and programs, and/or hamper on-going projects of the City Government. SECTION 6. The Grantee is hereby authorized and permitted to construct an antenna tower of two hundred fifty (250) feet high, more or less, at its proposed antenna site. SECTION 7. The City of Pagadian shall provide the Grantee all local construction permits and/or other requirements for the construction and operation of the cable television system upon payment of the necessary fees as provided for under applicable laws and ordinances; PROVIDED, that nothing herein shall be construed as an exemption of the Grantee from compliance with the building and related rules and regulations. SECTION 8. Subject to the prior approval of the Sangguniang Panlungsod, the Grantee shall be authorized to charge/collect from subscribers reasonable fees and charges for its services. SECTION 9. The Grantee shall retain ownership of all construction installations, cables/lines and other materials necessary for the business subject of the open franchise upon expiration of the period thereof, including the company-supplied feeder lines; PROVIDED, that the feeder lines purchased by the subscribers for the installation of the system over and above the company/grantee supplied feeder line can be, at the option of the subscriber, be resold to the company with a Ten (10%) Percent depreciation cost. SECTION 10. In case of violation by the Grantee of the terms, conditions and/or requirements specifically provided herein, the City Government shall have the power to revoke or withdraw the franchise granted and shall have the right to impose a fine against the franchise holder in the amount of Five Hundred (P500.00) Pesos for every subscriber and shall be a lien on the property of the Grantee. SECTION 11. All agents of the Grantee must be provided with necessary identification for the protection of the people most especially subscribers. ARTICLE II. This Ordinance shall take effect immediately upon its approval. ENACTED AND APPROVED by the 5th City Council of Pagadian City during its 61st Regular Session held on August 26, 1996 at the Sangguniang Panlungsod Session Hall.