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Memo 2nd Reading Ordinance 96-790/96-792CITY OF HOPKINS • MEMORANDUM To: Hopkins City Council From: Jim Genellie Date: November 14, 1996 Subject: Second Reading of Ordinance #96 -790 and Ordinance #96 -792 Staff recommends that the Council approve the following motion: Move that the Hopkins City Council a• 'rove Ordinance #96 -790 Cable Television Franchise ALA e ement Ordinance and Ordinance #96 -792, Cable Television Regulatory Ordinance for second reading and order publication of the summaries of Ordinances #96 -790 and #96 -792. These ordinances have not changed since the first reading. One additional piece of information is attached. Paragon has provided the cities with a Public Access Transition Plan This is a plan for changing from three public access studios to the single studio in Eden Prairie. Attachments: • Summary of Ordinance #96 -790 • Summary of Ordinance #96 -792 • Paragon Cable's Public Access Transition Plan • • CITY OF HOPKINS COUNTY OF HENNEPIN SUMMARY OF ORDINANCE NO. 96-790 CABLE TELEVISION FRANCHISE AGREEMENT ORDINANCE The Cable Television Franchise Agreement Ordinance ( "Agreement Ordinance ") grants a cable franchise to KBL Cable Systems of the Southwest Inc. d/b /a Paragon Cable ( "Grantee ") for 15 years. It also provides the effective date for the renewal. The Agreement Ordinance specified that Grantee will upgrade the current cable system to a capacity of 750 MHz with 550 MHz reserved for providing the delivery of up to 79 analog cable channels (the present system has a capacity of 58 analog channels). The technical operations of the system shall also be upgraded and the Grantee shall provide stand by power for the cable system. Grantee agrees to extend service to any residences receiving City water and sewer services. Parental control provisions shall be available to subscribers upon request. Under the Agreement Ordinance, Grantee shall provide a free connection and specified free cable services to public schools and municipally owned buildings. Free installation and service shall also be provided to private schools until the year 2000. A provision in the Agreement Ordinance allows the City to engage the Grantee in a periodic review process to determine whether the cable system is state -of -the -art. Such a review includes at least two public hearings to obtain public comment. Provisions in the Agreement Ordinance also permit the City to require subscriber surveys. The Agreement Ordinance requires the Grantee to provide four public, educational and governmental access channels. Grantee shall also provide leased access channels and the Metro Cable Network, Channel six, as required by law. Under the Agreement Ordinance, Grantee will combine the three existing public, educational and governmental access facilities into one large facility located in Eden Prairie. The Grantee is required to file a transition plan with the City describing this process. The combined facility will feature a studio with audience participation capacity, two separate editing suites, storage space, regular hours including evening and weekend hours, and it will be wheelchair accessible. Grantee will provide at least $200,128 in funding for the facility during the first year. After the first year, the Grantee shall provide sufficient financial and in -kind support to maintain a substantially equivalent level of services, facilities and equipment in the remaining years of the Agreement Ordinance. • The Agreement Ordinance requires the Grantee to assist the City in providing live City Council meetings, reruns of government access programnng and character generated programming on the government access channel. Grantee shall also assist the City in replaying tapes in pre - arranged time slots and it will switch to C -SPAN 2 or other comparable programming when the government access channel is not carrying live or taped government access programming. The Agreement Ordinance requires Grantee to pay a franchise fee of five percent. Grantee must maintain a bond of $300,000 until the system upgrade is complete and then the City may reduce the bond to $100,000. Several provisions specify penalties in the event of non - compliance with the franchise and the procedures to enforce those penalties. In consideration of the Grantee's investment of $20 million to rebuild the systems for the Cities of Eden Prairie, Edina, Minnetonka, Hopkins and Richfield, MN, the Agreement Ordinance contains a competition adjustment provision that relieves the Grantee of certain franchise fee and public, educational and government access obligations within a city if a wired competitor offers video programming services in that city. A printed copy of the entire ordinance is available from the City Clerk and at the Hopkins library. First Reading of Ordinance #96 -790: November 6, 1996 Second Reading of Ordinance #96 -790 and approval of the summary of Ordinance #96 -790: Date of Publication of the Summary. Effective Date of Ordinance: November 19, 1996 November 27, 1996 January 1, 1997 CITY OF HOPKINS COUNTY OF HENNEPIN • • SUMMARY OF ORDINANCE NO. 96 -792 CABLE TELEVISION REGULATORY ORDINANCE The Cable Television Regulatory Ordinance ( "Regulatory Ordinance ") provides the franchising process and requirements for all cable operators within the City of Hopkins. It defines the terms used within the documents. It also outlines the authority that the City of Hopkins has to grant cable franchises. The Regulatory Ordinance provides an application process for new applicants and a renewal process for current applicants. The Regulatory Ordinance specifies that no franchise can be granted for a period of time longer than 15 years. It also describes the franchise territory. Within the Regulatory Ordinance, franchise administration procedures are outlined. The Regulatory Ordinance specifies that the City Manager or the City Manager's designee is responsible for cable administration. Under the Regulatory Ordinance, the City is authorized to delegate its rights regarding administration of the Regulatory Ordinance. During emergencies or disasters, the City is authorized to use the Grantee's emergency alert system. To address customer service issues, the Regulatory Ordinance incorporates the Federal Communications Commission's customer service standards and includes additional customer service standards regarding outages, subscriber complaints, subscriber practices, subscriber charges, rate regulation and the rights of individuals. It also required each Grantee to maintain a local office. The Regulatory Ordinance requires each Grantee to provide public, educational and governmental access programming and facilities consistent with state and federal law. Provisions within the Regulatory Ordinance allow the City to review Grantee's records and books. The Regulatory Ordinance also specified the documents and records that each Grantee must provide annually including an Annual Performance Review. The Regulatory Ordinance provisions state that the City has the right to review transfers of ownership and to match a bona fide purchase offer for an asset sale of the system. Additional provisions govern the City's right to purchase the cable system upon forfeiture, revocation or expiration • To minimize litigation, the Regulatory Ordinance contains mediation procedures. The Regulatory Ordinance also affirms the City's right to assess a franchise fee. To protect the City, the Regulatory Ordinance includes provisions detailing the Grantee's liability for damages and penalties, the Grantee's responsibility for indemnifying the City, requirements for security funds, and insurance requirements. The Regulatory Ordinance contains extensive default provisions including requirements for the continuation of cable services if a franchise is terminated or if it is not renewed, and foreclosure and receivership procedures. Additional provisions in the Regulatory Ordinance include a Force Majeure provision allowing exceptions for events beyond the Grantee's control, a severability procedure and an effective date provision. A printed copy of the entire ordinance is available from the City Clerk and at the Hopkins library. First Reading of Ordinance #96 -792: November 6, 1996 Second Reading of Ordinance #96 -792 and approval of the summary of Ordinance #96 -792: Date of Publication of the Summary: Effective Date of Ordinance: November 19, 1996 November 27, 1996 January 1, 1997 November 11, 1996 Theresa M. Harris Southwest Suburban Cable Commission c/o FREDRIKSON & BYRON 1100 International Centre 900 Second Avenue South Minneapolis, MN 55402 Dear Ms. Harris: Thank you for your oversight of our Public Access Transition Plan. The following should answer the questions your raise. The two other access studios will close on December 15, 1996. Users will be notified in person, by phone or letter on December 1. Active Hopkins/Minnetonka users have been contacted and several have already begun to use the Eden Prairie facility. The Eden Prairie studio will be closed for a transitional period beginning December 15, reopening January 15, 1997. Please note the amendment to the enclosed, updated transition plan which addresses the lack of stated regular weekend hours. We will monitor regular weekend use and revisit these hours at a future date. Your questions regarding this information and the plan are welcome. Sincerely, Rode Vice President of Public Affairs 287 -3652 (enclosure) PARAGON Kim M. Roden, Vice President of Public Affairs 801 Plymouth Avenue North, Minneapolis, Minnesota 55411 6121522 -5200 FAX 612/521 -7626 A Time Warner inc. Comcanv ADMINISTRATION OF SOUTHWEST COMMUNITY TELEVISION Southwest Community Television will be available to residents of Eden Prairie, Edina, Hopkins, Minnetonka and Richfield. Residents may produce or submit completed, non - commercial programs for public access playback. Schools and Cities may submit programming for the educational and government access playback. Paragon Cable staff will provide: - Project planning leading to project approval. -Basic training in rules and regulations, studio and portable production and editing leading to certification. - Certification monitoring; rules and equipment handling enforcement. - Scheduling and staffing of the facility. - Equipment maintenance and repair. - Processing of submitted and produced programming for playback. - Scheduling of the local PEG channels. - Playback of programming. - Promotion of public access Facilities and equipment will consist of: -One studio in Eden Prairie with audience capability; to be handicapped accessible. -A control room. -Two edit suites. - Battery powered portable equipment with basic accessories. - Playback decks and playback switching/monitoring equipment. Operational hours: Studio services hours: 10:00 a.m. to 6:00 p.m., Monday and Friday; 10:00 a.m to 9:30 p.m:, Tuesday and Thursday; 1 :00 p.m. to 9:30 p.m. Wednesday; 4:00 p.m. to 6:00 p.m. Saturday. Tape drop- off/pick -up: 8:00 a.m. to 7:00 p.m., Monday through Friday. Playback: 3:00 p.m. to 11:00 p.m., Monday through Friday; 10:00 a.m. to 11:00 p.m., weekends. Additional educational and government access playback times, as arranged.