Memo CATV Relief ExtensionCITY OF HOPKINS
MEMORANDUM
DATE: November 1, 1991
TO: Hopkins City Council
FROM: Jim Genellie
SUBJECT: 1991 CATV Relief Extension Agreement
Negotiations have been completed on extending the cable relief
agreement until the end of the franchise period in 1999. The
Operating Committee and the full Southwest Suburban Cable
Commission (SWSCC) have approved the agreement. The SWSCC has
passed a resolution urging that the five cities also approve the
agreement.
A summary of the main points of the agreement is attached. Several
resolutions, ordinances, and agreements need to be approved by each
City Council. These documents have not been delivered to the City
at this time.
These documents should be ready by the November 5 Council meeting.
The documents have been reviewed by the city attorney. Adrian
Herbst, SWSCC administrator, and representatives of Paragon Cable
will be present at the November 5 Council meeting to answer any
questions.
HERMAN J. RATELLE
PATRICK F. FLAHERTY
JAMES H. HENNESSY
WAYNE A. VANDER VORT
DONALD E. WIESE
HOWARD 5. COX
PAUL VAN VALKENEURG
STANLEY R. STASEL
MICHAEL L. FLANAGAN
w SCOTT HBRZOG
WAYNE A. HERGOTT
JAMES E. O'BRIEN
JOHN P STONE
PAUL G. NEIMANN
EDWARD L. WINER
ADRIAN E. HERBST
WILLIAM N. KOSTER
WILLIAM A. HAUG
CHARLES A. PARSONS. JR.
PHILIP A. PPAPPLY
RICHARD J. JOHNSON
Gentlemen:
ROBERT J. LUKBS
J. MICHAEL HIRSCH
EDWARD J. ELOMME
MARGO S. STRUTHERS
ANN K. NEWHALL
MICHAEL J. AHERN
MAHER J. WEINSTEIN
PHILLIP GAINSLEY
JEFFREY L. WATSON
ROBERT B. PERING
THOMAS J. SHROVE*
DALE M. WAGNER
BARBARA G. STUART
DAVID P. JENDRZEJEK
DANIEL J. GOLDBERG
CURTIS D. SMITH
PETER J. TIMMONS
DAVE P. SINGER
BRUCE E. MARTIN
LOUIS J. SPELTZ
MITCHELL H. COX
LAW OFFICES
MOSS & BARNETT
A PROFESSIONAL ASSOCIATION
4800 NORWEST CENTER
90 SOUTH SEVENTH STREET
MINNEAPOLIS, MINNESOTA 55402 -4119
TELEPHONE 1612) 347-0300
TELECOPIER )612) 339 -6686
347 -0448
WRITER'S DIRECT DIAL NUMBER
September 11, 1991
MICHAEL J. BRADLEY
PETER A. KOLLER
STEVEN Z. KAPLAN
NICK HAY
JEANNE K. STRETCH
RICHARD J. KEL8ER
REESE E. CHEZICK
LAURA J. MCKNIGHT
BARBARA JEAN D'AQUILA
ELIZABETH A. SNBLSON
SUSAN C. RHODE
M. CECILIA RAY
THOMAS M. HUGHES
PAUL T. EIOSNESS
DANIEL R. SUNDELL
MARY E. LANGAN
MAUREEN A. SCOTT
JOSEPH R. KLEIN
DAVID M. HENRY
JENNIFER A. BROOKS
MARLA 8. RAKERD
Re: 1991 CATV Relief Extension Agreement between Southwest Suburban
Cable Commission ( "SWSCC "), Cities of Eden Prairie, Edina, Hopkins,
Minnetonka and Richfield ( "Member Cities ") and KBL Cablesystems of
the Southwest, Inc. ( "KBL ")
Enclosed for your review are the following documents drafted in
connection with the above- reference matter:
1. SWSCC Resolution (Exhibit 1);
2. City Resolution (uniform for each Member City (Exhibit 2));
3. Local Programming Restructuring Ordinance (uniform for each Member
City (Exhibit 3));
4. Restated Performance Agreement (Exh'.bit 4);
5. Restated Contract for Local Programming Facilities (Exhibit 5);
7. Acceptance by KBL (Exhibit 7); and
ROUGH DRAFT
For Discus:ion O a∎y
Restated Contract for Public, Educational and Government Access
Services (Exhibit 6);
ANN M. MEYER
VINCENT J. PAHNLANDER
NANCY M. K15KI5
SONJA TROM EAYRS
HEIDI A. SCHNEIDER
CHARLES E JONES
R055 A. KAPLAN
BRIAN T. GROGAN
RETIRED
J. BRAINERD CLARKSON
PREMONT C FLETCHER
VERNE W .MOSS
8. Consent Agreement and Guaranty of Performance (Exhibit 8).
These documents are the product of extensive negotiations between
representatives of the SWSCC and KBL, and in their substantive terms, state
the final agreement reached by these parties.
In 1955, the SWSCC, Member Cities and Rogers Cablesystems of the
Southwest, Inc., KBL's predecessor ( "Rogers ") entered into agreement
temporarily relieving Rogers from certain obligations under the Franchise
Agreement (the "Relief Agreement "), as a result of. Roger's financial
difficulties. In late 1988 -early 1989, the SWSCC, Member Cities and KBL
agreed to extend and modify the terms of the Relief Agreement (the "Relief
Extension Agreement "). Under the terms of the Relief Extension Agreement, KBL
MOSS & BARNETT
A PROFESSIONAL ASSOCIATION
Page 2
September 11, 1991
reserved the right to request further extension of the Relief Agreement, now
set to terminate on March 1, 1992. On August 27, 1990, KBL notified the SWSCC
of its desire to continue the Relief Agreement, and negotiations between the
parties began.
Key changes to the existing Relief Extension Agreement are as follows:
+ Beginning August 1, 1992, KBL will pay the full five percent (5 %)
franchise fee to the Member Cities. This is set out in Section 6 of
the Local Programming Restructuring. Ordinance (Exhibit 3).
AEH /dhr /132ZDMB
Beginning August 1, 1992, KBL assumes full responsibility for "local
programming ", with an annual budget of $347,000, which escalates
each year by five percent (5%). This appears in Subdivision 4 of
the Local Programming Restructuring Ordinance.
• Beginning November 24, 1991, KBL will produce the Southwest
Community News Show. Starting in November, 1993, the Southwest
Community News Show will continue under KBL's production, or
$100,000 of KBL's budget will be devoted to local origination
programming. This obligation is described in the Local Programming
Restructuring Ordinance at Subdivision 4 and in the Restated
Performance Agreement (Exhibit 4) at Sections 4.04A and B.
KBL will not itemize the cost of local programming on its customer
bills for at least two (2) years from the effective date of the
Restated Performance Agreement, under Section 4.07 of that Agreement.
Section 5 of the Local Programming Restructuring Ordinance repeals the
Relief Extension Ordinance of 1988, effective August 1, 1992. Therefore, the
enclosures restate, and do not simply amend, the documents constituting the
Relief Extension Agreement. In particular, KBL is obligated to continue
coordination of local programming with the Member Cities and the SWSCC, and to
provide meaningful reports to the SWSCC, as described in Section 7 of the
Restated Performance Agreement.
The final enclosure (Exhibit 9) is our proposed schedule for adoption of
the 1991 CATV Relief Extension Agreement. Your assistance and cooperation
with meeting this schedule would be greatly appreciated. Accordingly, please
contact me at your earliest convenience with any comments or questions you may
have.
Very truly yours,
Adrian E. Herbst
Unless otherwise identified the changes begin August 1, 1992:
337Z040
GO MOSS & BA.R.ti ETT
4800 Norwesc Center
90 South Seventh Street
Minneapolis. MN 55402-4119
(612) 3-+ -0300
SUMMARY OF KEY ELEMENTS TO BE INCLUDED IN
AGREEMENT TO EXTEND RELIEF
7/24/91
5% franchise fee to Cities
..... •....h-I1V1 r
EXHIBIT 1 to SWSCC RESOLUTION
• Paragon Cable assumes full responsibility for 'local
programming"
News show production beginning November 24, 1991
Annual budget *347,000, escalated by 5% ach
year and deducted from gross revenues prior to
calculation of the franchise fee
Beginning November, 1993, news show will
continue or *100,000 of budget will be devoted
to local origination
Continued coordination of programming with
Cities and Commission
Retain service levels, equipment repair and
replacement as defined in Performance Agreement and
current contracts for local programming
No itemization of cost- for local programming on
customer bills for at least 2 years (July 31, 1994)
Cooperation and participation between Paragon Cable
and Commission to create meaningful reporting
requirements
New agreement terminates upon sale or transfer
Cities of Eden Prairie, Edina, Hopkins. Minnetonka & Richfield