CR 96-204 Amending Cable Television FranchiseDecember 11, 1996 ti e
ip O P K
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Proposed Action
Staff recommends that the Council approve the following motion: Move that the Hopkins City Council
approve for first reading Ordinance #96 -794 amending ordinance #96 -790, Cable Television Franchise
Agreement Ordinance and Ordinance #96 -792, Cable Television Regulatory Ordinance.
Adoption of this motion will begin the process of amending the recently passed cable television ordinances to
add language negotiated by the City of Minnetonka.
Overview
ORDINANCE AMENDING CABLE TELEVISION FRANCHISE AND
REGULATORY ORDINANCES
The City of Minnetonka recently adopted the cable television ordinances. During the process of adoption
slightly different language was added to the two ordinances to reflect some concerns that the City of
Minnetonka had. Paragon Cable has agreed to add identical language to the ordinances passed by the other
cities in the Southwest Suburban Cable Commission (SWSCC). The language changes are relatively minor
but do serve to improve the two ordinances.
• All the other cities of the SWSCC have approved the ordinances with the new language or are in the process
of amending the same ordinances that the City of Hopkins already approved in order to add the new language.
Primary Issues to Consider
• What were the concerns of the City of Minnetonka and what new language is being added?
Supporting Information
• Ordinance #96 -794
a
Ja A. Genellie
tant City Manager
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Council Report 96 -204
Council Report 96 -204
.Pa 2
Analysis of the Issues:
• What were the concerns of the City of Minnetonka and what new language is being added?
Shared Use of Facilities - The current franchise has language which requires the cable company to allow
cities to make space available on its poles and towers, underground lines and conduit, for City wires, fixtures,
or City utilities. Cities must pay for any added expense incurred by the company because of such use.
Paragon has agreed to add this language to the new franchise.
Security Fund - The ordinance passed by the City of Hopkins contained a provision requiring the deposit
of a letter of credit as a security fund by the cable company whenever the company was given notice that it
was not in compliance with the franchise. Minnetonka wanted additional language added to ensure that a
security fund is established even if the cable company disputes the allegation that it is not in compliance.
Paragon has agreed to add this language to the new franchise.
Reimbursement for relocating cable property - Normally if the City is undertaking a street project which
requires the relocating of utilities, such as gas, electric, or cable, the utility company must move its wires or
pipes at their expense. The new cable regulatory ordinance contained language that required the City to
reimburse the cable company for these expenses if the City used its own funds to reimburse any other non -
e municipally owned utility for relocating its property at the City's request.
Evidently the City of Minnetonka has an arrangement with NSP which provides for NSP to establish a
fund which can be used in the future to pay for moving NSP facilities. Minnetonka wanted the language in the
ordinance to be clarified so that this sort of arrangement would not be interpreted as the City of Minnetonka
reimbursing NSP out of its own funds. Paragon has agreed to add this language to the new regulatory
ordinance.
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Alternatives
1. Approve Ordinance #96 -794, amending Ordinance #96 -790, Cable Television Franchise Agreement
Ordinance and Ordinance #96 -792, Cable Television Regulatory Ordinance for first reading This will
begin the process of amending the cable ordinances.
2. Do not approve Ordinance, #96 -794 for first reading.
Staff recommends Alternative 1.
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CITY OF HOPKINS COUNTY OF HENNEPIN
ORDINANCE NO. 96 -794
AN ORDINANCE AMENDING
ORDINANCE 96 -790, CABLE FRANCHISE ORDINANCE AND
ORDINANCE 96 -792, CABLE REGULATORY ORDINANCE
The City Council of the City of Hopkins does hereby ordain:
SECTION 1. That Ordinance #96 -790 be amended to include the
following language:
6.7 Shared Use of Facilities
The Grantee must make space available on its poles and towers, or upon timely
request by the City, underground lines and conduit, for City wires, fixtures, or
City utilities, whenever such use will not interfere with the use of those
facilities by the Grantee or an other communication compan . The Cit must pa
for any added expense incurred by the Grantee because of such City use.
SECTION 2. That Ordinance #96 -790, Section 10.3(A) be amended to
include the following language:
10.3 Security Fund
A. In the event the Grantee is given notice of a non - compliance pursuant to
Section 34 of the Ordinance, the Grantee shall within ten (10) days thereof
deposit into a bank account, established by the City, and maintain on deposit the
sum of Twenty Thousand and 00 /100 Dollars ($20,000.00) or deliver to the City a
letter of credit in the same amount as a common Security Fund for the faithful
performance by it of all the provisions of this Franchise and compliance with all
orders, permits and directions of the City and the payment by Grantee of any
claim, liens, costs, expenses and taxes due the City which arise by reason of the
construction, operation or maintenance of the System. Interest on this deposit
shall be paid to Grantee by the bank on an annual basis. The security may be
terminated by the Grantee upon the Resolution of the alleged non - compliance. The
obligation to establish the security fund required by this paragraph is
unconditional. The fund must be established whenever Grantee is given the notice
required, even if Grantee disputes the allegation that it is not in compliance.
If Grantee fails to establish the security fund as required, the City may take
whatever action is appropriate to require the establishment of that fund and may
recover its costs, reasonable attorneys' fees, and an additional penalty of $2000
in that action.
SECTION 3. That Ordinance #96 -792, Section 8(F) be amended to
read as follows:
F. Whenever City shall undertake any public improvement which affects a
Grantee's equipment or facilities, City shall, with due regard to reasonable
working conditions and with reasonable notice, direct a Grantee to remove its
wires, conduits, cables and other property located in Streets. A Grantee
shall relocate or protect its wires, conduits, cables and other property at
its own expense. If the City uses its own funds to reimburse any non -
municipally owned utility for relocating its property at the City's request,
and if the City does not receive something of approximately equal value, to
which it was not otherwise entitled, in exchange for such reimbursement, the
City will reimburse Grantee in a substantially similar manner. Notwithstanding
anything to the contrary, this requirement shall not apply where an electric
utility has been compensated for relocating its plant underground through
franchise fees collected from the electrical utility and such fees are
dedicated in whole or in part to the undergrounding of electric facilities.
SECTION 4. That Ordinance #96 -792, Section 8(G.2) be amended to
read as follows:
(2) A Grantee shall change from aerial to underground, at its own expense,
in any area where both electrical and telephone are hereafter changed from
aerial to underground. If the City uses its own funds to reimburse any non -
municipally owned utility for relocating its property at the City's request,
and if the City does not receive something of approximately equal value, to
which it was not otherwise entitled, in exchange for such reimbursement, the
City will reimburse Grantee in a substantially similar manner. Notwithstanding
anything to the contrary, this requirement shall not apply where an electric
utility has been compensated for relocating its plant underground through
franchise fees collected from the electrical utility and such fees are
dedicated in whole or in part to the undergrounding of electric facilities.
SECTION 5. That Ordinance #96 -792, Section 8(G.3) be amended to
read as follows:
(3) A Grantee shall change from aerial to underground, when both electrical
and telephone are similarly required, without cost to City, whenever requested
by City, which request can be made for a certain area or areas or for the
entire System. If the City uses its own funds to reimburse any non -
municipally owned utility for relocating its property at the City's request,
and if the City does not receive something of approximately equal value, to
which it was not otherwise entitled, in exchange for such reimbursement, the
City will reimburse Grantee in a substantially similar manner. Notwithstanding
anything to the contrary, this requirement shall not apply where an electric
utility has been compensated for relocating its plant underground through
franchise fees collected from the electrical utility and such fees are
dedicated in whole or in part to the undergrounding of electric facilities.
SECTION 6. The effective date of this ordinance shall be twenty
days after publication.
ATTEST:
First Reading of Ordinance #96 -794:
Second Reading of Ordinance #96 -794:
Date of Publication:
Effective Date of Ordinance:
Terry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature Date
December 17, 1996
January 7, 1997
January 15, 1997
February 5, 1997
Charles D. Redepenning, Mayor