Subject: 18973/Telescr.Cable/Waiving default
Date: Wed, 5 Dec 1990 13:16:00 -0500


                               RESOLUTION NO. 18973
                  
                  
                   A RESOLUTION WAIVING ANY DEFAULT BY
                   TELESCRIPPS CABLE COMPANY D/B/A CHATTANOOGA
                   CABLE T.V. IN THE PROVISIONS OF SECTION 10
                   OF ORDINANCE NO. 9374 UP TO AND INCLUDING
                   JULY 1, 1991.
                  
                  
                                                    
                  
                  
       	    	 WHEREAS, Ordinance No. 9374 encaptioned "AN ORDINANCE OF
       THE CITY OF CHATTANOOGA, TENNESSEE, GRANTING TO TELESCRIPPS CABLE 

       COMPANY, ITS SUCCESSORS, LESSEES AND ASSIGNS, A FRANCHISE FOR THE 

       TERM OF SIXTEEN (16) YEARS, THE RIGHT, AUTHORITY, POWER, 
PRIVILEGE
       AND PERMISSION TO OPERATE A CABLE TELEVISION SYSTEM WITHIN THE
       CITY OF CHATTANOOGA." was enacted by the governing body of the
       City of Chattanooga, Tennessee on May 22, 1990; and
       	    	 WHEREAS, Section 10 of said Ordinance required the
       Grantee, Telescripps Cable Company, to offer to its subscribers
       within the City of Chattanooga a basic 12-channel service on or
       before March 31, 1991; and
       	    	 WHEREAS, Tennessee Code Annotated A767-6-212(a)(5)
       imposes a tax at a rate equal to the rate of tax levied on the
       sale of tangible personal property at retail on fees for
       subscription to, access to or use of cable television services in 

       excess of those charges made for the basic or lowest rate charged 

       by the supplier of such services; and
       	    	 WHEREAS, There is presently pending before the Tennessee
       Legislature a bill which would exempt from taxation certain fees
       for subscription to, access to or use of cable television 
services
       in excess of those charges made for the basic or lowest rate
       charged by the supplier of such services; and
       	    	 WHEREAS, The City Council of the City of Chattanooga,
       Tennessee, desires to waive any default in the provisions of the
       aforementioned Section 10 of Ordinance No. 9374 in order to avoid 

       the imposition of taxes upon a majority of the subscribers of
       Telescripps Cable Company in the City of Chattanooga until the
       State Legislature has had an opportunity to consider the
       aforementioned pending bill;
                                NOW, THEREFORE,
       	    	 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
       CHATTANOOGA, TENNESSEE, That there be and hereby is waived any
       default by Telescripps Cable Company d/b/a Chattanooga Cable T.V. 

       in the provisions of Section 10 of Ordinance No. 9374 up through
       and including July 1, 1991. 
       	    	 BE IT FURTHER RESOLVED, That nothing in this Resolution
       shall be deemed to waive any default in the provisions of Section 

       10 of Ordinance No. 9374 after July 1, 1991.
      
       ADOPTED:  April 2, 1991
      
       WSPjr:jrm