81-486 (Official Publication) -
CITY OF HOPKINS
Hennepin County, MinneSota
ORUINANCE NO. 8 1-486
� AN ORDINANCE, INCLUDING ADDENDUM WITH EXHIBITS, GRANTING
A. FRANCHISE TO MINNESOTA CABLESYSTEMS-SOUTHWEST,.A
MINNESOTA LIMITED PARTNERSHIP, TO OPERATE 11ND MAINTAIN A CABLE
COMMUNICATION SYSTEM IN THE CITY; SETTTNG FORTI� CONDITIONS
ACCOMPANYING THE GRANT OF FR.ANCHISE; PROV3DING FOR
REGULATION, :AND USE OF THE SYSTEM; AND PRESCRIBING PENALTIES
FOR THE VIOLP,TION OF ITS PROVISIONS
The City Council_ of the Citg of Eiopkins ordains:
STATEMENT OF INTENT AND PURPOSE
The City intends, by the adoption of this Franchise, to
bring about the development of a Communications System, and the
continued operation of it. Such a development can contribute •
significantly to the commur�ication needs and desires of many.
� Further, the Cit�r may achieve better utilization and.improvement
of its public services.
Past studies', participated in by City, have led the way for :
organizing a means �f procuring and se�uring a Cable Communica-
tions System deemed best suited to the City, in the judgment of
the Council. Shis has resulted in the preparation and adoption
of this Franchise.
FINDINGS
In the review of Grantee's proposal and application and as a -
result of public hearings, the City �ouncil makes the following
findings:
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A. ��e Grantee's technical ability, financial condition, legal
�` qualifications, and character were "considered and approved _
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in a full public proceeding after due notice and reasonable
oPPortunity to be heard;
• B. Grantee's plans for constructing and operating the System
were considered and found adequate and feasible in a full
public proceeding after due notice and reasonable opportu-
nity to be heard;
C. The Franchise granted to Grantee by City complies with the _
existing applicable Minnesata Statutes and regulations and
Franchise standards of Board; and
D. The Franchise granted to Grantee is nonexcl.usive.
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ARTICLE T.
• SHORT TITLE AND DEFINITIONS
SECTION 1. SHORT TITLE
This Ordinance shall be known and cited as the Cable Commun-
ications Ordinance.
SECTION 2. DEFINITIONS � .
For the purpose of the Franchise, the following terms,
phrases, words and their derivations shall have the meaning given
herein. When not inconsistent with the context, words used in
the present tense include the future, words in the plural number
include the singular number, and words in the singular number
include the plural number. The words "shall" and "will° are
� mandatory and "may" is permissive. Word� not defined shall be
given their common and ordinary meaning.
A: "Basic Service" means.all subscriber serviees provided by
�Grantee including the delivery of broadcast sic�nals, covered
by the regular monthly charge paid by all subscribers, ex-
cluding optivnal services for which a separate charge is
made:
B. "Board" means the Minnesota Cable Communications Board.
C. "City" means City of Hopkins,: a municipal corporation, in
the State of Minnesota.
� D. "Class IV Channel" means a signaling path.provided by a
System to transmit signals of any type from a subscriber
terminal to another point in System.
E. "Connection" means the attachment of the drop to the first
radio or television set of the sub5criber. :
Fe "Converter" means an electronic device, which converts sig-
nals to a frequency not susceptible to interference within
• the teievision receiver of a subscriber, and by an appropri-
ate channel selector also permits a subscriber to view all
basic subscriber signals included in the basic �service
-delivered at designated converter dial locations.
: G.: "Council'' means the governing body of Cityo
He "Drop" shall mean.the cable that connects the subscriber
terminal to the nearest feeder cable of the cable. •
I. "FCC" shall mean the Federal Communications Commission and
any legally appointed, designated or elected agent or suc-
cessor. _ _
� J. ; "Grantee" is Minnesota Cablesystems - Southwest, a Minnesota
Limited Partnership, its agents or employees.
K. "Gross Revenues"`shall mean all revenue derived directly or
� indirectly by Grantee, its subsidiaries, parent, �
and any person in which Grantee has.a financial interest of
five percent (50) or more from or .in connection with the
operation of the System, including but not limited to, basic
subscriber service monthly fees, pay cable fees, installa- -
tion and reconnection fees`, leased channel fees, converter
_ ' rentals, studio rental, production equipment and personnel
fees, and advertising revenues. The term does not include
� any taxes on services furni.shed by Grantee and imposed di-
rectly upon any subscriber or user by the State, City or
other governmental unit and collected by Grantee 'on behalf`
of said governmental unit.
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Le "Installation" means the connection of the System from feed-
er cable to the point of connection. _
• M. "Lockout Device" is an optional mechanical or electrical
accessory to a subscriber's terminal which inhibits the
viewing of a certain channel or channels provided by way of
cable communications system.
1�T. "Offering of Grantee" or "Offering" shall mean that certain
document dated December 5, 1980, entitled "Offering of
Grantee" and signed by Grantee and City, which document is
on file with the City Clerk. ~
00 "Public Property" is any real property owned by City other
than a street. -
� P. �"Scrambler/Descrambler" refers respectively to the equipment
installed -to the cable communications system's headend "
equipment and subscriber terminal used to isolate pay cable
and other ancillary service channels from hasic service
which is accomplished by electronically distorting the sig-
nal prior to its transmission through the cable communica-
tions system and reconstituting the singal at each autho-
rized location for subsequent display.
Q. "Sidewalk" is the portion of a street del.ineated for pedes-
trian travel. :
R. "Street" shall mean the surface of and the space above and
� be].ow any public street, road, highway, freewag, lane, path,
public way, alley, court, sidewalk, boulevard, parkway,
drive or any easement or right-of-way now or hereafter held
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by Gity which shall, within its proper use and meaning in
�he sole opinion of City, entitle Grantee to the use thereof
• for the purpose of installing or transmitting over poles,
wires, c.ables, conductors, ducts, conduits, vaults, man-
holes, amplifiers, appliances, attachments and other prop-
erty as may be ordinarily necessary and pertinent to a
System.
S. "SWSCC" shall mean the Southwest Suburban CATV Study Comumis-
sion. :
T. "Subscriber" means any person or entity who subscribes to a
service provided by Grantee b�r means of or in connection
with the System regardless of whether a fee is paid for such
� , service.
U. "System" means a system of antennas, cables, wires, lines,
towers, waveguides or other conductors, converters,. equip-
ment or facilities, designed and constructed for the purpose
of producing, receiving, transmitting, amplifying and dis-
tributing, audio, video and other fornls of electronic or
electrical signals, located in City. Said definition sha7.1.
not include any system wholly internal €o one or more multi-
p1e t�nit dwellings under common ownership, control or man-
agement, and �does not use City streets or other public
property. In any event, system as de£ined herein shall not
� be inconsistent with the definition as set �out in the rul.es
of the Board.
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ARTICLE II.
. GR.ANT OF AUTHORITY AND GENERAL PROVISIONS
SECTION 1. GRANT OF FRANCHISE AND ACCEPTANCE
City hereby qrants to Grantee, a nonexclusive franchise sub-
ject to all of the terms and conditions as herein provided:
A. Grantee shall accept this Franchise in the foll.owing manner,
and not later than the time set out in Article XIV, Section
2:
(1) This Franchise will be properly executed and ack-
nowledged by Grantee and delivered to City.
(2) At the same time as delivery of the executed Fran-
. chise, Grantee shall deposit with City its nonre-
� fundable acceptance fee in the sum of $20,OOQ.04,
for the purpose of defraying the costs and expen-
ses of de�eloping this Franchise and far the en-
forcement and administration costs to be incurred
_ until other Franchise fees may be xealized. If
- such costs to City exceed the sum of $20,OOQ.00,
City may charge such excess costs to Grantee and
Grantee shall pay them on demand by City.
(3) Al1 security deposits, Letters of Credit, insur-
ance contracts, a�cceptances, bonds, attorneys'
. opinions, organizational and creation documents
and guarantees required of Grantee by this Fran-
chise, shall be delivered with the executed Fran-
chise and in accordance therewith.
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SECTION 2. AUTHORITY GR�NiED
• A. City grants to Grantee the permission to use streets for
- erecting, constructing, operating and maintaining the Sys-
tem. Other rights necessary for the System on other public
or private property must be obtained by Grantee, but City
shall have no obligation to gi�re or grant or assist in ob-
taining the same. _
B. Grantee shall construct and maintain the System.so as not to
interfere with other uses of streets. Grantee shall make
use of existing poles and other facilities available to
Grantee.
C. Notwithstanding the above grant to use streets, no street
• � shall be used by Grantee if City in its sole opinion deter-
mines that such use is inconsistent w�:th the terms, condi-
tions or provisions by which such street was created or
dedicated, or presently used.
SECTION 3. AGREEMENT
A. Grantee agrees to be bound by all the terms and conditions
of this Franchise.
B. The Grantee also agrees to provide all services specifically
set forth in, and to comply with all provisions of, its
_ Offering to provide a System within the boundaries of City.
� Further, failure of Grantee to provide a System as described
in its Offering, at City's option, shall be a violation of
the provisions of this Franchise. In the event of conflicts
or discrepancies between the Offering of Grantee and the
provisions of this Franchise, the provisions �ahich provide
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the greatest benEfit to City, in the opinion of the Council,
shall prevail.
� SECTiON 4. FR.ANCHISE TERM . �
This Franchise shall commence upon acceptance by Grantee and
shall expire 15 �ears from date of acceptance.
SECTION 5. AREA
This Franchise is granted for City as it exists from ti.me to
time during the term of this Franchise.
SECTION 6. POLICE POWERS
A. Grantee's rights are subject to the police power of City to
adopt and enforce ordinances necessary ta the health,, safety
and welfare of:the public.
� B. 'Any conflict between the provisions of this Franchise and
any other present or future Iawful exercise of police powers
of City shall be resalved in favor of City.
SECTION 7.. USE OF GRANTEE FACILI�'IES
City shall have the right to install and maintain, free of
charge, upon the poles and within the underground pipes and con-
� duits of Grantee any wires and fixtures desired by City. Grantee
waives any claim against City arising from City's exercise of
these rights. : _
SECTTON 8. WRITTEN NOTICE
All notices, reports or demands required to be given in
• writing under this Franchise shall be deemed to be given when
delivered personally to any officer of Grantee City's Adminis-
trator of this Franchise or 48 hours after it is deposited in'the
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United States mail in a sealed envelope, with registered or certified
� mail postage prepaid thereon, addressed to the party to,which notice
is being given, as follows:
If to City: 1010 South First Street •
Hopkins, Minnesota 55343
If to Grantee: 4344 IDS Center
Minneapolis, Minnesota 55402 :
Such addresses may be changed by either party upon notice to the•
other party given as provided in this section.
SECTION 9. RIGHTS OF INDIVIDUALS ;
Ae No signals, including signals of a Class IV Channel, shall.
� . be transmitted from a subscriber terminal except as required
to provide a service authorized by this Franchise and the
subscriber. Grantee and any other person shall neither ini-
� tiate nor use any procedure or device for procuring or
storing information or data from a subscriber's terminals or
terminal by any means, withaut the prior authorization of :
the affected subscriber which shall not have been obtained
from the subscriber as a condition of service. The request
for such authorization shall be contained in a separate doc-
ument and identify the purpose for which the data or infor-
: mation is being gathered or stored. After the first year of
• the authorization's initial signing, Grantee 5ha11, for each
yea� said authorization is in effect without. revocation,
mail a notice to each authorizing subscriber informing him
or her of his right to revoke said authorization. The
authorization shall be revacable at any time by the
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subscriber without penalty of any kind whatsoever. A sepa-
• rate authori2ation shall be required for each type or clas-
sification of data or information sought from a subscriber
terminal. :
B. Grantee shall not, without the written authorization of the
affected subscriber, provide to anyone data identifying or
designating any subscriber. Any data authorized shall be
made available upon request by and without charge to the
'authorizing subscriber in understandable fashion, including
specification of the purpose for which the information is
being gathered and to whom and for what fee the information
is to be sold.
� C. Grantee shall not tap or monitor, arrange for the tapping or
monitoring, or permit any other person to tap or monitor,
any cable, line, signal input device, or subscriber outle
or xeceiver for any purpose whatsoever, without the prior
written authorization of the affected subscriber as required
by paragraph A of this section..
D. Nothing herein contained shall prohibit Grantee from verify-
ing System operation and the transmission of signals to an
affected subscriber or from monitoring for the purpose of
billing.
SECTION 10. CERTIFICATE OF CONFIRMATION . -
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Grantee shall abide by the then current rules and:regula-
tions of Board regarding the application, approval, and renewa7.
of a Certificate of Confirmation. Failure of Grantee to obtain a
Certificate of Confirmation or a renewal thereof shal7: result in
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automatic termination of this Franchise, and this Franchise shall
cease to be of any force or effect. However, Grantee may operate
� the System while the Board is considering an application for
renewal of the Certificate of Confirmation.
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ARTICLE IIIe
• .. . DESIGN OF SYSTEM _. _
SECTION 1. CHANNEL CAPACITY — SUBSCRIBER NETWORK
Grantee shaTl initially activate and thereafter maintain a
- subscriber network having:at least a forward capacity of 54 video
channels, plus the FM audio band,,and a reverse capacitg of four
video channels. The design will provide for a self-contained
\ bidirectional network in each City forming part of this System.
The System will be programmed from a central point, �ut the con-
figuration will accommodate the practical isolation of City,
allowing for the distribution of unique programming to it. The
System shall be capable of increasing its channel capacity as
� technology permits and needs arise.
SECTION 2. PICTURE QUALITY AND TECHNICAL RE UIREMENTS
A. The System will produce a picture upon'each subscriber's
television screen in black and white or color, depending
upon whether color is beinq telecast and provided the sub-
scriber's television set is capable of producing a color
picture, that is undistorted and free from ghost images,
without material degradation of color fidelity. The System :
-- � shall produce a sound that is undistorted on any receiver of
a subscriber. Grantee, .at its expense, shall install and �
maintain the System so as not to interfere with any sub-
• scriber's recei t of local broadcast stations.
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B. The System shall transmit or distribute signals to all tele-
vision and radio receivers of all subscribers without caus-
ing crossmodulation in the cables or interfering with other
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electrical or electronic systems or the reception of other
television or radio receivers.
� C. Grantee shall construct and maintain a S stem �that at leas
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meets minimum technical standards now or hereafter promul-
� gated by the FCC relating to cable communications systems;
. provided, however, that in no event shall the technical
- standards required to be met by Grantee be less stringent
than the FCC standards in effect at the time of the adoption
of the Ordinance, nor shall Grantee be required �to meet
minimum FCC technical standards which apply solely to cable
communications systems for which franchises are granted sub-
sequent to the acceptance of this Franchise. .
• D. � The System shall be installed and remain capable of using
aIl band equipment and of passing the entire VHF bands,
mid-band, super-bands and FM band up to 402 MHz.
E. The System shall be designed for and:operated on a 24 �ours
a day continuous operation bas'is.
F. : Grantee shall specify the procedure for initially and subse-
quently testing the technical capacity of the Sgstem and
agrees to have City select a consultant to review and per-
� form such testing procedure. The results of any 'tests
required by:the FCC shall be filed within ten days of the
conduct of such tests with the City and the Board. Oth�r
• representati�es of City may be present during testing. The
tests may be done annuallg at:such times as i:s determined by
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City, with notic:e to Grantee. All expenses for all such
tests shall be paid by Grantee. '
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SECTION 3. TWO-WAY CAPACITY
Grantee shall initially activate and thereafter maintain a
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two-way capable System (audio, video and data impulse). This:
will include fully interactive service capability provided by a
centralized computer system and customized subscriber home termi-
nals, backed up by full standby powering throughout the System.
SECTI�N 4. FACILITIES
The Grantee shall construct, maintain and continue to pro-
vid� all facilities and equipment set forth in the Offering-
including, but not limited to, the headend, hubs, distribution
system, studios, equipment and other facilities. Grantee's plan,
as set forth in the Offering, for implementing the construction,
. utilization and' maintenance of these facilities, including its
plans for accommodating future growth and �hanging needs and
desires, shall be fully and timely performed.
SECTION 5. SPECIAL CHANNEL AND ACCESS REQUIREMENTS �
Ao Grantee will carry broadcast stations in accordance with FCC
rules as from time to time revised.
8. � Na converter will be required for the seven channels of the
tlniversal Service Tier. Converters may be required for the
Family Service Tier and for the Full Service and Interactive
Tiers. A charge for lease or purchase from Grantee may be
_ made by Grantee, or a subscriber may lease or purchase a
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converter from any other source. For premium services
Grantee may requir� the use of a Gran�ee converter or
: descrambler. .
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C. Channel 12 shall be an emergency channel operated by City.
� D. Grantee wil•1 provide an audio/visual emergency alert over-
ride system that will permit the initial interruption by
City of all audio (including FM): and video programming.
E. Grantee shall provide at least seven channels for access use
(including one for each of the following uses: public,
government, leased, educational, regional). All residential
subscribers who receive all or any part of the total ser-
vices offered on the System shall also receive all of said
seven access channels at no additional charge. These
channels shall be activated upon System activation and
thereafter maintained. Grantee shall establish rules and
� regulations prior to System activation for the use of access
channels which shall be approded by City before implemen-
tation and thereafter shall not be -altered or amended
without approval of City. In preparing such rules:
(1) Grantee shall provide an equal opportunity for use
of access services.
{2) Grantee will consider needs assessments prepared
by Ci,ty. .
(3) Grantee shall develop a plan to allocate to City a
reasonable use and�fair schedule of channel time,
:• use of equipment and facilities so ,that it can
receive programming unique to its needs.
(4) Grantee will comply, at a minimum, with the
requirements of City and the Board now or here-
after adopted or determined by City or the Board
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regarding access channels. Such requirements of
. the Board are hereby made a part of this ordinance
and include the following:
(a) Grantee shall, to the extent of the
System's available channel capacity,
provide to each of its subscribers who
receive all or any part of the total
services offered on the System, recep-
tion on at least one specially designat-
ed noncommercial public access channel
available for use by the general public
on a first come, nondiscrirninatory :
• basis• at least one specially designated
access channel for use by local educa-
" tional authorities; at least one speci-
ally designated access channel available
for local government use; and at least
one specially designated access channel
. available for lease on a first come,
nondiscriminatory basis by commercial
and noncommercial users (hereinafter the
"access channels"). Subscribers re-
• ceiving only alarm system services or
only data transmission services for
computer operated functions shall be :
exempt from this requirement. The VHF
spectrum shall be used for at least one
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of'the specially designated noncommer-
• cial public access channels required.
No charges shall be made for channel
� time or playback of prerecorded :
_ programming on at least one of `the
specially designated noncommercial
public access channels. However, per-
sonnel, equipment and production costs
may be assessed for live studio presen-
tations exceeding five minutes in
length. Charges for such production
� costs and any fees for use of other pub-
lic access channels shall be conszstent
with the goal of affording the public a
low cost means of television access.
. Access facilities equipment and/or cha-
- � nnel time will be made available to the
general public, any group or individual
resident in City for the production
and/or cablecasting of noncommercial
: programming free of charge on a first
come, nondiscriminatory basis.
• (b) Whenever any of the access channels are
in use during 80 percent of the weekdays
(Monday-Friday), for 80 perGent of the
� time during any consecutive three hour .
period for six weeks:running, and there
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� is demand £or use of an additional chan-
. nel for the same purpose, Grantee shall
then have six months in which to provide
a new speaially designated access chan-
nel for the same purpose at no addition- .
al cost to subscribers.
(c) The rules and regulations established by _
the Grantee and approved by City govern-
ing the access channels shall be filed
with the Board within 90 days after any
such channels are put into use.
(d) Subscribers receiving programs on. one or
�` ' more special service channels without
also receiving the regular subscriber
services may receive only one specially
: designated composite access channel com-
posed of the programming on access chan-
nels. 3ubscribers receiving only alarm
system services or only data transmis-
- sion services for computer operated
� functions shall not be included in this
. requirement. :
• (5J The Grantee shall comply, at a minimum, with the
requirements of City and Board, now or hereafter
adopted by City or Board regarding public use of
its equipment, including the following:
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(a) Grantee shall make readily available for
. • public use at least minimal equipment
necessary for the production of program-
ming and playback of prerecorded pro-
grams for the specially desigriated
noncommercial public , access channel.
The Grantee shall also make readily
available upon need being shown; the
minimum equipment necessary to make it
possible to record programs `at remote :
� locations with battery operated portable
: equipment.
� (b) Need within the meaning 'of this para-
graph shall be determined in the sole
�discretion of City or by subscriber
. petition. Said petition must contain
� the signatures of at least 10 percent of
the subscribers of 5ystem but in no
case more than 500 nor fewer than 100
signatures.
SECTION 6. INSTITUTIONAL NETWORK
The System shall include at a minimum a separate institu-
• tional telecommunications network, interconnected with the
subscriber network, of eight sections wi:th a combined trans-
mission capacity of 472 channels, with full two-way capability. :
Said network shall be offered, activated, expanded, marketed and
developed at a minimum in full, compliance with the Offering.
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Need for the provision of institutional. service shall be deter-
. mined in the sole. discretion of City.
SECTION 7. SERVICE TO PUBLIC BUILDINGS AND EDUCATIONAL INSTITU-
TIONS
Grantee�shall provide, at a minimum, subscriber and institu-
tional network service to a11 publ.icly owned buildings, in:City
�(City Hall, police department, fire department, schools, libra- .
ries, etc.), all educational institutions in City, and all
buildings now or hereafter wholl� or partially own�d or leased
for governmental use by any state, federal or local government in
City, or owned or leased by school districts or educational
institutions in Cit�r, all as set out in_the Offering. Need for
• either or both of such network services as referred to in the
Offering shall be determined in the sole discretion of City.
SECTION 8. INTERCONNECTION
Grantee will comply with ali present and future rules, regu-
lations and orders of the Board regarding interconnectiori of sys-
tems, and will cooperate with any agencies or utilities involved
with interconnection. At such times as interconnection is .
required, Grantee shall accomplish this without additional charge
to subscribers. System shall be initial2y constructed':so that :
other systems now or hereafter constructed in any area adjacent
. to System may be interconnected�with System without delay.
SECTION 9. NARROWCASTING
Grantee shall provide separate programming capability to
City on each of the. access channels on the Universal Service
Tier.
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SECTION 10. COMPUTER SERVICES
� Grantee shall construct System to accommodate interactive
data communications with a total network transmission time of
less than one-tenth (1/10) of a second. -
SECTION 11. REGIONAL CHANNEL
The standard VHE Channel 6 is hereby designated for uniform
regional channel usage. However, until the regional channel
become�s operational, Grantee may utilize the standard VHF
Channel 6 as it deems appropriate. Use of time on the regional
channel shall be made available without charge.
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ARTICLE IV.
� SERVICE5 AND PROGRAMMING,
� S�TBSCRIBER CONTRACTS, COMPLAINTS
SECTION 1. SERVICE5 AND PROGRAMMING
A. Services and Programming. The programming and services
sha11 be structured in three tiers, all of which will be
programmed at the time of Systern�activation, providing, at a
minimum, the programming and services set forth in the
Offering. Programming and services as designated in the,
Offering shall be changed by Grantee only upon prior written
approval of City. The three tiers are as follows:
(1) The Universal Service Tiere The Universal Service Tier
shall be provided as a public service without charge :
• after instal3ation, permitting free view :of: seven
access channels. A subscriber may lease or buy a con- �
verter, permitting a total service of 13 channels. ✓
{2) The Family Service Tier. The Family Service Tier shall
incorporate the Universa7, Service Tier with 14 pro-
grammed video channel.s, a total of 21 channels of
service combining access and local broadcasting with
local origination. In� addition, this tier shail pro-
vide a community information service and offer two
premium services, a family-oriented mini-pay-TV service
� : �and a comprehensive FM radio service.
(3) The Ful1 Service Tier. The Full Service Tier shall
provide 54 channels which increases the Family Service
Tier by incorporating distant'stations, several
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satellite-fed services, additional local origination
,' channels, additional premium channels and several cus-
tomized alpha-numeric services. Included in this tier
shall be a sub-tier called "expanded service" which
- shall have the same channel capacity and shall include
_ a converter and an interactive unit.
B. Locally originated programminge Grantee shall provide at a
minimum 23 locally programmed channelso _
C. Community Access and Programming.
(1) Grantee shall, at a minimum, comply with the community
access and programming plan of the Offering.
(2) Grantee shall provide upon system activation a commu-
• � nity access and programming staff of at least 22 per-
sons, provided, however, that City recognizes said
staff as well as the entire community access and pro-
. gramming plan of the Offering encompasses all of the .
systems of tYie Cities then a party to a Joint Powers
Agreement relating to System (referred to herein as the
+ system" ) .
(3) The community access and programming staff shall:
(a) Identify community access needs;
(b) Train and consult with interested residents of
• City in the use of the access equipment; and
(c) Promote the availability and uses of community
access.
(4) Access facilities and equipment shall be provided at a
minimum as set forth �n the Offering.
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(5) Modulators shall be provided at 20 locations throughout
•. the joint system in addition to those which:shall be
provided to educational institutions. Further, there
shall be a mobile production unit and partable' video
recorders as set forth in the Offering, all of which
shall be available upon System activation.
(6) Grantee shall cooperate in the development of an access
. nonprofit corporation if determined to be needed by
City.
(7) Grantee shall establish a citizen advisory board from
City to provide community advice and recommendations to
Grantee relative to the comrnunity access and program-
� ming of 5ystem. .
D. Interactive Services.
'� System shall be fully activated to receive inter-
active services. Interactive;services shall at a :
minimum be provided,as designated in the Offering.
Grantee;warrants, represents and guarantees that
no invasion of privacy can occur in connection
with any aspects of the services provided by
System.
SECTION 2. INTERRUPTION OF SERVICE AND COMPLAINT5
• A. Whenever it'is necessary to shut off or interrupt service,
Grantee shall do so during perioels of minimum use o£ the
System. Unless such interruption is unforeseen and imme-
diately necessary, Grantee shall give reasonable notice
thereof to subscribers. � All costs incurred in repairing
, .
. 25
System and handling complaints shall be paid by Grantee, and
• if service is interrupted or discontinued for more than 48
hours, subscribers shall be credited pro rata for such inter-
ruptione The cause for any such interruption shall be
removed and service restored as promptly as reasonably
possible.
Be Grantee shall maintain an office in the Minneapolis/St. Paul
metropolitan area which shall be open during alI usual busi-
t
ness hours, have a listed local telephone, and be so opera-'
ted that complaints and requests far repairs or adjustments
may be received at any time, 7 days per week.
(1) Notice of this information shall be provided to all new
� � subscribers at time of subscription and to existing
subscribers annually.
(2) Grantee shall not engage in the sale of television sets
or provide other television repair service, but in the
event such service is required, shall promptly notify
subscriber of that need for service.
(3) Al1 complaints by Cit�r, subscribers, or other persons
regarding the quality, of service, equipment malfunc-
tion, billing disputes, and any other matters relative
: to the System, shall be investigated and responded to
by a service :representative at the location of the
• �complaint by Grantee within 24 hours. If reasonably
possible, Grantee shall rectify the cause of all valid
complaints. If a complaint is not rectified within
three days, the complainant may then file the complaint
with City: _
� .
2b :
(4) City and Grantee shall prepare and maintain a record of
� all`complaints made to them.. If at any time after the
filing of a complaint with City, City determines, in
its sole discretion, that the complaint represents a
violation of this Franchise, any law, ordinance or
regulation, or represents a failure in the performance
of Grantee pursuant to this Franchise, City may, in
� addition to any other remedy available ta it, issue
written notice specifyinq the nature of the complaint
and ordering Grantee to appear at the next regularly
scheduled Council meeting. At said Council meeting,
� Grantee shall explain its failure to rectify the
complaint and show cause why the Council should not
institute default proceedings. Failure by Grantee to
� appear may result, at the sole discretion of City, in
� the termination of this Franchise.
• .
. . . . . . . . . . . . . . . . . . . . F . . . .. � .
- � . . . . . . . . . . � . . . 1 .. . � . . �
� � � � . . � . . . , . � / � � . . . � .. . . .. . . .
ARTICLE V.
CONSTRUCTION, INITIAL SERVICE AREA -
� LINE EXTENSION AND CONSTRUCTION STANDARDS
SECTION 1. INITIAL SERVICE i�REA
A< Engineering and design shall be completed within one year
after date of granting of thi.s �Franchise and a significant
amount of construction, in the� opinion of City, shall be
completed within one year after Grantee's receipt of all
. necessary governmental permits, licenses, certificates and.
authorizationse
B. Grantee shall provide service to all residences now or here-
after within the initial service area as such area is iden-
tified on �the map attached hereto as Exhibit A and made a
� part hereo£. .
' C. Construction maps and schedules, included as a part of
. Exhibi:t A are also hereby made a part of this Franchise. :
All construction within the initial service area wiil be :
completed according to Exhibit A within eighteen months [the
"construction period"] after the date of issuance of the
Certificate of Confirmation by the Board.
D. The energized trunk cable shall be extended throughout the
initial service area within eighteen months after the date
: of issuance of the Certificate of Confirmation by the Board.
� .All persons and entities along the route of the energized
trunk cable who desire them will have individual drops
installed and activated within the same eighteen-month _
period. -
�
„� _ ._ _ .�_ _ _ _: __.
28
E. Grantee shall give residents 30 days' advance notice of the
. commencement of construction affecting their property, which
notice shall fully explain how the work will be carried out.
E. The requirements of paragraphs A, B, C and D may be w�ived
by City only upon the occurrence of unforeseen events or
acts of God, but in no event shall the construction period
be greater than five years from commencement of construc-
tion.
SECTION 2. LINE EXTENSION PGLICY
Grantee's extension of service to those areas not included
in the initial service area shall be done pursuant to the follow-
ing requirements: .
� A. ' Residences Iocated outside the initial service area will be
provided service upon acceptance of a: quote from Grantee.
The quote shall not exceed the cost to Grantee, calculated
on a time and material basis, of extending the cable and
necessary cable equipment to service the residence.
B. Any nanresidential user requesting serzrice will be provided `
service upon acceptance of a quote from Grantee. The quote
- shall not exceed the cost to Gra.ntee, calculated on a time
and material basis, of extending the cable and necessary
cable equipment to service said user.. .
SECTION 3. CONSTRUCTION TIMETABLE
�
A. Within 60 days after the granting of Franchise, Grantee
shail apply for all necessary permits, licenses, certifi-
cates and authorizations which are required in the conduct
of its business, including, but not limited to, any joint .
use attachment agxeements, microwave carrier licenses,
29 .
or any other permits, licenses and authorizations to be
� - granted by duly constituted regulatory agencies having
jurisdiction over the operation of cable�communication sys-
tems, or their associated microwave transmission facilities.
If after one year from the commencement of Franchise term,
Grantee has not received the permits, licenses, certificates
and authorizations described in this:paragraph, City may
terminate this Franchise without,regard to fault for delay
in obtaining such permits, licenses, certificates and �
authorizations.
B. Within 90 days after obtaining all necessary permits,
licenses, certificates and authorizations, Grantee shall
� � give written notice thereof to City and commence construc-
tion ar.d installation of Systemo
. C. Any delays in the construction timetable or commencement of
- .construction shall r.esult �.n penalties as provided in this
Franchise, and continued delays may result in the termina-
tion of this Franchise and all rights and privileges of
Grantee hereunder.
(1) Grantee shall promptly notify City of all delays
known or anticipated in the construction of
System.
• (2} City may extend the time for beginning construc-
tion or may extend the construction timetable in _
: the event Grantee, acting in good faith, experien-
: ces delays by reason of circumstances beyond its
cantrol.
�., _ _
:30
SECTION 4. CONSTRUCTION STANDARDS
•' Ae Grantee shall not open or disturb the surface of any streets
or public property without first obtaining a permit from
City for which permit City may impose a reasonabie fee to be
paid by Grantee. The lines, conduits, cables and other
property placed in the streets and public property pursuant
to such permit shall be located in such part of the street
or public property as shall be determined by City. Grantee
shall, upon completion of any work requiring the opening of
any streets or public progerty, :restore the same, including
the pavement and its grounds to as good a condition as for-
merly and ir� a manner and quality approved by City, and
� shall exercise reasonable care to maintain the same there-
after in good condition. Such,work shall be performed with
�� diligence and due care, and if Grantee shall fail to perform
�the work promptly, to remove all dirt and rubbish and to put
the street or public property back into the condition
required hereby, City shall have the right to put the
streets or public property back into good conditian.at the
expense of Grantee. Grantee shall, upon demand, pay:to City
the cost of such work done or performed, together with an
additional sum as liquidated damages to be determined by
� City, •
B. AI1 wires, conduits; cable and other property and facilities
of Grantee shall be so iocated, constructed, installed and
maintained as not to endanger or unnecessarily interfere
with the usual and customary trade, traffic and travel upon,
31
or other use of, the streets and public property of City.
Grantee shall keep and maintain all of its property in good
• condition, order and repair so that the same shall not men-
ace or endanger the life or property of any person. City
shall have the right to inspect and examine at all reason-
able times and upon reasonable notice the property owned or
used, in part or in whole, by Grantee. Grantee shall keep
accurate maps and records.of all of its wires, conduits,
cables and other property and facilities located, construc-
ted and maintained in the City. Further, Grantee shall,
without charge, furnish copies of such maps and records from
time to time as requested by City.
• C. All wires, conduits, cables and other.property and facili-
ties of Grantee, shall. be constructed and installed in an
orderly and workmanline manner. All wires, conduits and
cables shall be installed, where gossible, parallel with
electric and telephone lines: Mul�iple cable configurations
shall be arranged in parallel and bundled with due respect
for engineering considerations.
D. Grantee shall at all'times comply with all applicable laws,
ordinances, rules, regulations and codes,`federal, state and
Iocal. In any event, the installation, operation or mainte-
nance of System shall not endanger of interfere with the
� safety of persons or property in the City.
E. Whenever City shall undertake any public improvement which
affects Grantee's equipment or facilities, City shall, with
due regard to reasonable working conditions and with reason-
. ;�',� �
32
able notice, direct Grantee to remove its wires, conduits,
. cables and other property located in streets or public prop-
erty. Grantee shall relocate or protect its wires, con-
duits, cables and other property at its own expense.
F. Grantee's plans for constructing its System, and the con-
struction of the System, shall�be in accordance with its
Offering. However, Grantee shall compl.y with the following
minimum requirements: .
j (1) Grantee shall construct underground in any area
1!
where another line, either electrical or tele- -
. phone, has been installed underground.
(2) Grantee shall change' from aerial to underground,
. at its own expense, in any area where another 2ine
is hereafter changed from aerial to underground.
� (3) Grantee-shall change fram aerial to underground,
without cost to City, whenever requested by City,
. which request can be made for a certain area or
areas or for the entire System.
(4) To enable Grantee reasonable opportunity to change
its wiring from aerial to underground, and also to
allow it to pre-wire alZ new subdivisions or new
development areas, City shall provide Grantee with :
• written notiee of the following, but in no event
- shall city have any liability for failure to pro-
vide notice of the following:
(a) Any changes of which City has knowledge,
or which City . may order, regarding a
' _ ��;
- 33
change from aerial to underground of any
line (telephone or electricaly within _
� its boundaries.
(b) Any underground trenching that may be
pending. .
(c) New subdivisions and development. All
of such subdividers or developers shall
be notified of the Franchise and the
� System. .
(d) All Franchise changes affecting the wir-
ing of the System. .
SECTION 5. CONDITIONS ON USE -
. A'e . Grantee shall not place poles or other fixtures where the .
same will interfere_with any gas, electric or telephone fix-
ture, water hydrant or main.
B.` Grantee, at the request of any person holding a building
moving permit and with not less than five days advance
- notice, shall temporarily remave, raise or lawer its wires,
conduits and cableso The expense of such temporary removal,
raising or lowering of wires, conduits and cables shall be
paid by person requesting the same,;and Grantee shall have
the authority to require such payment in advance.
C. Grantee shall have the authority, to the extent the Gity has
� authority to grant the same, to trim trees upon or overhang-
ing any street'or public property so as to prevent the bran-
ches of such trees from coming in contact with the wires,
conduits and cables of Grantee. A11. trimming shall be done
, _ ,
�
. �.. _ ,
_ g4 .
under the'supervision and direction of City and at the ex-
• pense of Gra�tee. .
' D. Nothing contained in this Franchise shall relieve any person
from liability arising out of the failure to exercise reas-
onable care to avoid injuring the Grantee's facilities while
performing any work connected �with grading, regrading or
changing the line of any street or public place or with the
. construction or reconstruction of any sewer or water system.
� .
�
35 ,
ARTICLE VI.
• SYSTEM OPERATIONS
SECTION 1. INFORMATION AVAILABILITY
A. Throughout the term of this Franchise, Grantee shall main-
tain books and records in accordance with normal and accep-
ted bookkeeping and accounting practices for the Cable
: Comm,unications industry, and allow for inspection and copy-
ing of them at reasonable times at its designated office.,
The books and records to be maintained by Grantee shall
include the following:
(1) A record of all requests for service;'
. (2) A record of a31 subscriber or other complaints,
and the action taken;
(3) A file of all subscriber contracts;
-(4) Grantee policies, procedures and company rules;
and
(5) Financial records.
�.'- City shall give Grantee at least 24 hours notice before
making inspections of any books or records of Grantee.
C. Grantee shall file with City, at the time of its annual pay-
ment of the franchise fee, as described in this Franchise,
the following:
• (1) A financial statement prepared by an independent
certified public accountant showing, in such de-
tail as acceptable to City, the`'gross revenues of
Grantee for the preceding fiscal year.
: t
_ _ _ __ _ ;�: _ : .. . _. . ..
36 :
(2) Current list of names and addresses of each offi-
• cer and director and other management personnel,
and if a corporation, each shareholder having
stock ownership of three (3%) percent or more, and
if a partnership, all general partners, and if a`
general partner is a corporation, the foregoinq
information shall be given as to the corporate
. general partner. . -
(3) A copy of each document filed with all federal,
state and local agencies during the preceding fis-
cal year not previously filed with City (each of
� these filings shall be provided at the time the
� filing is made).
(4) A statement of its current billing practices.
(5) A current copy of its rules.:
'(b) A current copy of its subscriber service contract.
D. City, its agents and representatives shall have authority to .
arrange for and conduct an audit of and copy the books and
records of Grantee. Grantee shall first be given five days
notice of the audit request, the description of and purpose
for the audit, and description, to the best of City's
ability, of the books, records and documents it wants to
• review. .
SECTION 2. SERVICE CONTRP,CT
A. Grantee shall receive approval from City of the form and
content of the service contract to be used by Grantee prior
,� :
.
37
to entering into any such service contracts with subscrib- :
� ers, and the Grantee shall make no ehanges in the approved
service contract without prior written approval of City.
The service contract shall include, at a minimum, a schedule
_ of all �rates and charges, description of services, instruc-
tions on the use of the system, billing and cailection prac-
tices.
B. The service contract shall further contain a statement as
follows-
Grantee shall not, as to rates, charges, service
facilities, rules, regulations or in any other
• � respect, make or grant any preference or advantage
to any person, nor subject any person to any pre-
judice or disadvantage, provided, that nothing"in
this Franchise sha11 be deemed to prohibit the
establishment of special contracts or rates for
heads of houehold who are 62 years of age or older,
or homebound persons, or for non-profit charitable
organizations, bulk rate dzscounts for multiple.
dwellings, or for promotional or other marketing
activities. _ _ _
Ce Grantee shall have authority to promulgate such rules, regu-
• lations, terrns and conditions governing the conduct of its
business as shall be reasonably necessary to enable Grantee
to' exercise its rights and perform its obligations under
- this Franchise and to assure an uninterrupted service to
�
38
each and a11 of its subscribers; provided, such rules, reg-
• ulations, terms and conditions shall not be in conflict with
the provisions of the Franchise, ordinances of City, and
laws of the State of Minnesota or the United States.
D. Each subscriber shall be provided with instructions on fil-
ing complaints or otherwise obtaining information or assist-
ance from Grantee.
E< All items"described in this section shall be provided to
each new subscriber at the time a contract is entered or
service begun, and to all existing subscribers not less than
once each year.
� F. The term of a subscriber contract shall not be for more than
� l2 months duration unless after 12 months the contract may
be terminated by the subscriber a:t his option at any time,
: with no penalty to subscriber.
SECTION 3. SUBSCRIBER PRACTTCES
A. There shall be no charge for disconnection of any installa-
tion or outlet. If any subscriber fails to pay a properl:y
due monthly subscriber fee, or any other properly due fee or
charge, Grantee may disconnect the subscriber's service out-
let, provided, however, that such disconnection shall not be
effected until-after the�later of (i) 60 days after the due
. date of said delinquent fee or charge or (iij ten days after
delivery to subscriber of written notice of the intent to
disconnect. If a subscriber pays before expiration of the
later of (i) or (ii), Grantee shall not disconnect. �After
disconnection, upon payment in fu11 of the delinquent fee or
_ ,
_ .,�
39
charge and:the payment of a reconnection charge, Grantee
. shall promptly reinstate the subscriber's cable service.
B. Refunds to subscribers shall be made or determined in the
following manner: .
(I) If Grantee fails, upan request by a subscriber, to
provide any service then being offered,'Grantee
shall promptly refund aIl deposits or advance
charges paid for the service in question by said
subscriber. This provision does not alter Grant-
- ee's responsibility to subscribers under any sepa-
, rate contractual agreement or relieve Grantee . of
any other liability. . .
� (2) If any subscriber terminates any monthly service
because of failure of Franchise to.render the ser-
vice in accordance with Franchise, Grantee shall
refund to such subscriber the proportionate share
� of the charges paid by the suliscriber for the ser-
vices not received. This provision does not re-
lieve Grantee of liability established in other
provisions of this Franchise.
C. If any subscriber terminates any monthly service prior to
: the end of a prepaid period, a proportionate amount.of any
� prepaid subscriber service fee, using tl�e number of days as
a basis, shall be refunded to the subscriber by Grantee.
D. Continued failure by Grantee to provide services required by
this Franchise may, in the discrstion of City, be cause for
imposition of a penalty or termination of thi.s Franchise.
�, -
40 -
SECTION 4. FRANCHISE FEE,' RATES, CHARGES, CHANGES IN FEES AND
PROCEDURES
• _ A. Full Regulatory Power Reserved.
(1) All rates and charges shall:be subject to regula- :
tion by City, in a manner to be provided by Coun-
cil .` In the absence of any City action taken to
exercise rate regulation, Grantee shall be subject
to the rate regulation provisions provided for
- herein, and of the State, or its agencies that may
from time to time be applicable.
(Z) In addition to the power to regulate rates and
charges, Citg hereby reserves the xight to adopt
regulations governing Grantee's collection of -
� I advance charges and deposits, installation and .'
reconnection charges, policies and procedures,
� � disconnection charges, policies and procedures,
� and the availability of refunds.
(3) Cost for installing any part of the System will be
a factor in the rate only if such cost was
incurred within City.
(4) _The territory for rates applicable to System shall
be City and all Cities then parties to a joint
powers agreement relating to the System.
S B. Franchise Fee.
(1) Throughout the term of- this Franchise, Grantee
will pay to City, within 60 dags after the end of
41
each fiscal year of Grantee, an annual fee of five
� (5%) percent of all gross revenues. No payment
will be allowed of any fee that is different from
five (5%) percent, other than the filing fee and
payment required of the successful applicant as �
established to recover the.costs of franchising.
. Grantee agrees to support any waiver required by
: the FCC for the established franchise fee. The .
annual fee may be'subject to renegotiation at such time
as federal or state authorities no longer regulate
the amount of the fee, but in no event shall the-
• renegotiated fee be less than five percent (5%).
� �(2) Payment will be made to City with an itemization
of the gross revenues derived from the services in
City.
C. Rates arid Other Charges.
(1) Rates and charges charged by Grantee for monthly
- service and installation and other charges here-
under shall be uniform, fair and reasonable and
:designed to meet all necessary costs of service,
including a fair rate of return on the original
cost, less depreciation, of the properties devoted
to such service (without regard to any subsequent
•
sale or transfer price or cost of such proper-
ties)e :
(2) For two years after commencement of construction
of System, or until completion of all construction
_;
, _ : �� . :
42
required by Article V, Section 1 of this Fran-
, chise, whichever is longer as determined by City,
the maximum rates shall be the specific rates of
Grantee as included in Exhibit B, attached hereto
and made a part of this Franchise and known as
Grantee Schedule of Rates. �
(3} Service requests for� maintenance or repair of
Grantee's property shall be performed at no.charge
to a subscriber. If such maintenance or repair is -
required as a result of damage caused by subscrib-
, er, Grantee may charge as a maximum its direct
costs for material and labor for service calls to
� subscribers' homes. .
(4) Rates for services not initially included in Exhibit B
shall be established only by amendment of this
Franchise. �
Da Rate Changes.
(1) No rate change shall be approved that would result
in different rates or charges for service to simi-
larly situated subscribers in the rate territory,
in the sole opinion of City.
(2) No rate or charge change will be approved unless
• all of the standards for review have been consi-
dered and evaluated and determinations have been
made, all pursuant to this Franchise.
(3) The standards for reviewing a proposed rate change
will include at least the following: �
*,
43 :
(a) The ability of the Grantee to render
S System services and to derive a reason-
able profit therefrom under the existing
rate schedule and proposed rate sched-
ule;
(b) The revenues and profits derived. from
System services;
(c) Tax benefits received by Grantee, its
partners or shareholders, as the result
of their investment in the System;
(d) Cash flow derived.from System services;
(e) The efficiency of Grantee;
� (f) The quality of the service offered by
Grantee;
. (g) The original cost of the .System, less
. depreciation; -
(h) A fair rate of return with respect to
investments having simiTar risks to that
of providing cable communication servi-
ces;
(i) The extent to which Grantee has adhered
to the terms of this Franchise;
. (j) Fairness to residents and subscribers;
(k) Capital expenditures by Grantee in pro-
viding updated technology and service to
. subscribers;
:� _
�; -
44 ,
(1) The extent to which Grantee has then pro-
• vided service to schools, hospitals,
libraries, publicly owned or leased
, - buildings and similar institutions
within City:
(m) Such ather factors as City may deem rel-
evant.
(4) The procedures to be followed in changing a rate :
or charge shall include at least the following:
(a) An application for a rate change will be _
submitted to City and a copy filed with
the Board.
� (b} The application shall be supported by
statistical and other proof indicating
that the existing rate or charge is
inadequate and unreasonable and that the
proposed increases are required to
enable Grantee to render service to fu1-
fill its obligations under this Fran-
chise and'to derive a reasonable profit
: therefrom.
(c) The applicatiori shall include current
�, information and financial information
with at least the followings
10 Balance sheet;
' 2o Income statement;
_ t
;� _ _
45
3. Statement of sources and ap-
•. plications of funds;
4. Detailed supporting schedules
of expenses, -income, assets
� and other items as may be re- :
_ quired by City; • :
5. Statement of current and pro-
jected subscribers; •
6. A current list of rates and
charges of Grantee aPplicable
- to systems owned or operated
by its parent corporation or
� � other subs'idiaries or affili- _
ates of its parent corporation
at other locations; `
7. A current list of rates and �
charges for other systems in
the"seven county Metropolitan
area; ;
8. Cash flow derived from System
services since the :commence-
ment of this Franchise, and
°� 9. Statement of tax benefits re-
ceived by Grantee, its part- :
_ ners or shareholders, as a
� _ result of their investment in
System.
_ : .:�
46
(d) City will.notify Grantee and Board and
� schedule a public hearing on the request
within two weeks from the date of
receipt of the application and the deter-
mination by City of its completeness.
Grantee will notify the public through
providing notice for one.week, each day
between 7:00 p.m. and 9:00 p.m. on two
channels of the date, place and time of
the hearing. City will publish notice
ten days prior to hearing in its
official newspaper.
• � (e) After closing the public hearing, City
will have 31 days within which to_make
. its determination. Any approved change
. in rates or charges shall become
� effective upon the date determined by
City.
(f)' If City fails to approve the requested
change or rates or charges within the 31
day period, Grantee may appeal pursuant
to the then applicable procedures of the
� Board.
(g) City may utilize a rate cansultant to
advise it on proposed rate changes and
- to assist it in maintaining uniform
_::
47 .
rates within the rate territory. A rate
� consultant may be any person who has
sufficient background and.experience, in
the sole opinion df City, to properly
evaluate and analyze rates and charges.
(h) All costs for the review of an applica-
tion for a rate or charge change shall
be paid by Grantee upon demand of City.
The costs shall includ.e, but not be li.m-
ited"to, attorneys' fees, and the reas-
onable value of services (as determined
by City} rendered by City or any city
• � employees, agents or representatives of
City.
(i) Any time limit may be waived only if
City and Grantee consent.
E. Periodic Reviews and Renegotiation.
The field of cable communications is a relatively new
and rapidly changing one which shall no doubt see many regu-
latory, technieal, financial, marketing and legal changes
during the term of the Franchise period. Therefore, in
order to provide for a maximum degree of flexibility in'this
� Franchise, and to help achieve a continued advanced and mod-
ern system, the following renegotiation provisions will
apply: _
(1) City reserves the right to adopt'rules and regula-
. - tions controlling the procedures and subjects for
;,
48 �
periodic reviews and renegotiatione In the
`� absence of any City action taken to exercise these
rights, Grantee shall be subject to at least the
procedures and subjects described in this section.
(2) City may require, at its sole discretion, System
performance evaluation sessions at any time during
the term of this Franchise or as required by fed-
eral or state law. Such evaluation sessions shall
be conducted by City within 30 days of the third,
fifth and tenth anniversary dates of the effective
date of acceptance of this Franchise by Grantee.
(3) All evaluation sessions shall be open-to the pub-
� lic and notice of sessions published in the same
way as a legal notice. Grantee shall notify its
subscribers of all evaluation sessions by
announcement on at least two channels of the :
System between the hours of 7:00 p.m. and 9:00
p.m. for five consecutive days greceding each ses-
sion. .
(4) Topics which may be discussed at any evaluation
session may include, but not be limited to, ser-
vice rate structures, franchise fee; penalties,
� free or discounted services; application of new
technologies; system performance; services provid-
ed; programming offered; community access; 1oca1
� origination; customer complaints; privacy; amend-
ments to this Ordinance; judicial, Board and FGC
�
. 49
rulings; line extension policies; and Grantee or _
: City rules. _
,,. � _
(5) During a review and evaluation by City, Grantee
shall fully cooperate with City and shall provide
without cost such information and documents- as
City may request to reasonably perform the :
service.
(6) If at any time during its review, City determines
that reasonable evidence exists of inadequate Sys-
tem performance, it may require Grantee to perform
tests and analyses directed toward such suspected
inadequacies at the Grantee's own expense. Grant-
�. � ee shall fully cooperate with C.ity in performing
such testing and shail prepare results and a re-
. port,� if requested, within 30 days after notice.
, The report prepared by Grantee shall include at
least:
{a) A description of the problem -in System
performance which precipitated the spe-
cial tests.
(b) What System component was tested.
- (c) The equipment used and procedures_
� employed in �esting.
(d) The method, if any, by which such System
performance problem was resolved.
(e) Any other information pertinent to said
tests and analyses which may be required :
�
�
50
: by City, or determined when the test is
� performed.
City may require that tests be supervised at
Grantee's expense by a consultant designated by
City. The consultant shall sign all records of
special tests and forward: to City such records
with a report interpreting the results of the '.
tests and recommending actions to be taken.
(7) As a result of a periodic review or evaluation. -
session, City may require Grantee to modify the
System or to provide additional services. Grantee
will comply with any such requirement of the City
� � unless, in the sole opinion of City, technoTogy
does _ not permit it, or Grantee establishes to the
satisfaction of City that the cost would prohi.bit
the implementation of the modification or the ad-
_ _ditional servicese -
SECTION 5. FRANCHISE RENEWAL
A. Grantee may apply for renewal of this Franchise n.ot
earlier than 18 months prior to the expiration of this
Franchise on forms provided by City. The renegotiation
period shall commence not less than 12 months before
� the expiration of the Franchise Term. . -
: B. Grantee may be approved, and this Franchise or modifi-
cation to it may be renewed or extended, by City in
accordance with the then existing rules of the FCC, the
51
Board, the City and all other applicable laws, ordi-
`� nances, rules.or regulations. -
C. Nothing in this Franchise shall be construed to require
- renewal or extension of this Franchise.
D. City shall conduct an investigation and evaluation of
the Grantee and the System and the renewal proposal.
This investigation and evaluation shall be completed:by
City within six months after receipt of the application
and determination by City of its compieteness.
E. Renewal of this Franchise may not be for more than 15
years, otherwise permitted by federal or state
law. _
� , - _
, ,
�
� . . . � � . . . . . . . . .. . . . � . . . . . . .. . . . K � • . . . . . � � .. � � . .
. . . � . . � �. ' . . �4 . � . . � � . . � . � . .
ARTICLE VII.
� � . (Reserved)
� ' .
� " -
_
- . .. . . . . . . .. . . . . . . . .. . .. �.. . , . . . .. Y. ... . : ... . .. . .. . . .
: 53
AR.T I CLE V I I I,
.� INDEMNiFICATION, IN5URANCE, LETTER OF
CREDIT AND �BOND
SECTION 1. GENERAL
A. All riqhts of City pursuant to indemnification, insurance,
letter of credit or bond,•as provided for by this Franchise,
are in addition to all other rights the City may have under
this Franchise or any other ordinance, rule, regulation or
Iaw. • :
Be The exercise or failure .to exercise by City of any rights
pursuant to any section of this Franchise shall not.affect
� in any way the right of City to subsequently exercise any
� such rights or any other right of City under this Franchise
or any`other ordinance, rule, regulation or law.
SECTION 2. INDEMNIF�CATION AND INSURANCE
A. Grantee shall,fully indemnify, defend and hold harmless,
City, its officers, boards, commissions, elected officials,
agents and employees against any and all costs, damage,
- expense, claims, suits, actions, liability and judgments for
damages, including but not limited to, expenses for legal
fees, whether suit be brought or not, and disbursements and
liabilities incurred by City in connection with:
. (1) Damage to persons or property, in any way arising
� aut of or through the acts or omissions of Grantee
or Cit�, their respeetive servants, officials,
agents or employees or to which Grantee's or
City's negligence or that of their respective ser-
_ �,
54
vants, agents, officials or employees shall in any
� way contribute;
(2) Arising out of any claim for invasion of the right
of privacy, for defamation of any person, firm or
corporation, or the violation or infringement of
any copyright, trademark, trade name, service mark
or patent, or of any other right of any person,
� firm or corporation, exc�pt claims because of
City's own programming; and `
(3) Arising out of Grantee's failure to comply with
the provisions of this Franchise, any federal:,
� , state or local. law, ordinance or regulation appli-
cable to Grantee or:the System.
(4) Any and all claims which Grantee may now or here-
� after have or claim to have against City, its ser-
vants, agents, employees or officials, due to or
arising out of damage to any of Grantee's property
or equigment, including, without limitation,-
resulting or consequential loss of income, injury
to reputation, or any other resulting or conse-
quential damages of any kind, caused by or
resulting from acts or omissions of City or any of
• its servants, agents, employees or officials.
B. I f suit be brought or threatened against City,` either inde-
pendently or jointly with Grantee, or with any other person
or"municipality, Grantee, notice given by City, shall
defend City at the cost of Grantee, .and if final judgment is .
obtained against City, either independently or jointly with
55
Grantee, or any other defendants, Grantee shall indemnify
City and pa.y such judgment with all costs and satisfy and
�.
discharge the same.
C.. City reserves the right to cooperate with Grantee and parti- :
cipate �in the defense of any litigation either through inter-
vention or otherwise. Grantee.shall pay upon receipt of
written demand from City, all expenses incurred by City in
� defending itself with segard to any matters in this section.
These expenses shall include, but not be limited to, attor-
neys! fees, and the reasonable value of services (as deter-
mined by City), rendered by City or any employees, agents or
representatives of City.
� SECTION 3. INSURANCE
A. Grantee shall maintain liability insurance covering its obli-
gations of indemnification provided for in or as a result of
the exercise of this Franchise covering both the City and
Grantee and shall maintain said insurance during the entire
term of this Franchise in the minimum amount of:
(1) $500,000 for property damage to any one person;
(2) $2,Q00,000 for property damage in any one act or
occurrence;
__
(3) $1,000,000 for persbnal injury to any one person;,
� and
(4) $2,000,000 for personal injury in any one act or
occurrence.
B. Such insurance shall be with a company acceptable to City
and shall otherwise be in form and substance acceptable to
,
,.
56
City. Such insurance poliey with written evidence of pay-
� ment of required premiums shall be filed and maintained with
City during the term of the Franchise. The above minimum :
amounts shall be changed from time to time by Grantee as
requested by City. Grantee-shall immediately give notice to
City of any threatened or pending litigation affecting this
insurance.
C. Neither the provisions of this section nor any.damages re-
covered by City shall be construed to, or shall, limit the
liability of Grantee. - �
_ D. No recovery by City of an�r sum hy reason of the Letter of
Credit or Bond required in this Franchise shall be any limi-
� tation u on the liabilit of Grantee to Cit under the terms
P Y Y
of this section, except that the sum so receided by City
from such Letter of Credit or Bond shall be deducted from a
recovery under this section, if for the same act or occur-
rence. ,
E. All insurance policies maintained pursuant to this Franchise
shall contain the following endorsement:
It is hereby understood and agreed that 'this in-
surance policy may not be cancelled nor the inten-
tion not to renew be stated until 60 days after
� receipt to City, by registered mail, of written
notice of such intention to cancel or not to
renewo _
57 _
SECTION 4. LETTER OF CREDIT
�, Ae At the time of acceptance of this Franchise, Grantee shall
deliver to City an irrevocabl.e and unconditional Letter of
Credit, in form and substance acceptable to City, from a
Nationa� or State bank approved by City, in the amount of
$50,000.
Be The Letter of Credit shall provide funds will be paid
to City, upon written demand of City, and in an amount sole-
ly determined by City i� payment for penalties charged pur-
suant to paragraph C of this section, in payment for any
monies owned by Grantee pursuant to its obligations under
this Franchise, or in payment for any damage incurred as a
� result of any acts or omissions by Grantee pursuant to this
Franchise.
C.. In addition to recovery of any monies owed by Grantee to
City or damages to City as a�result of any acts or omissions
by Grantee pursuant to the Franchise, City in its sole dis-
cretion may charge to and collect from the Letter of Credit
the following penalties: :
(1) For failure to complete System construction in accor-
dance with Grantee's initial service area plan,
unless City approves the delay, the penalty shall
� be`Two Hundred D011ars ($200.00) per day for each
day, or part thereof, such failure occurs or con- :
tinues.
(2) For failure to provide data, documents, reports or
information or to cooperate with City during an
;,
, . _ _ _ _. _ - „• . : _._. _
58 , _
application process or System review, the penalty
�` shall be Fifty Dollars ($50.00) per day for each
day, or part thereof, such failure occurs or con-
�inues.
(3) For failure to comply with any af the provisions
of this Franchise for which a penalty is not other-
: wise specifically provided pursuant to this Para-
� . graph C, the penalty shall be Fifty Dollars -
($50.00) per day for each day, or part thereof,
such £ailure occurs or con.tinues.
(4) For failure to test, analyze and report on the
. performance of the System following a request by
City, the penalty shall be Fifty Dolia�s ($50.40)
per day far each day, or part thereof, such fail-
. ure occurs or continues. -
(5) For failure by Grantee ta modify the System or to
provide additional services within 45 days after
required by City following a periodic review or
renegotiation session the penalty shall be Two
Hundred Dollars ($200.00) per day for each day, or
. part thereof, such failure occurs or continues.
(6) Forty-five days following notice from City of a
i failure of Grantee to comply with construction,
operation or maintenance standards, the penalty
shall be Two Hundred Dollars ($200.00) per day for
each day, or part thereof, such failure occurs or
continues. -
_ 59
(7) For failure to provide the services Grantee has
proposed, including but not limited to the imple-
� mentation and the utilization of the access chan-
nels and the making available for use of the
equipment and other faci�ities to City, the penal-
ty shall be One Hunc�red Dollars ($100.00) per day
for each day, or part thereof, such failure occurs
or continues.
(8) Each violation of any provision of this Franchise
shall be considered a separate violation for which
a separate penalty can be:imposed.
� D. Exclusive of the contractual penalties set out above in this
! , section; a violatian of any provision of this Franchise is a
misdemeanor. _
E. Whenever City finds that Grantee has violated one or more
terms, conditions ar provisions of this Franchise, a written
notice shall be given to Grantee`informing it of such vio].a-
tion. At any time after three days following notice, City
may draw from the Letter of Credit all penalties and other
monies due City. . _
F, Whenever a penalty has been assessed, Grantee may, within
ten days of notice, notify City that there is a dispute as
, to whether a violation or failure has, in fact, occurred.
� Such notice by Grantee to City shall specify with particu-
larity the matters disputed by Grantee.
r
. ,..,,
_. _ _ _ _ _ ___ ,, _ _ __ _
: 60
(1) City shall hear Grantee's dispute at the next reg-
� ularly scheduled Council meeting. City shall sup-
plement the CounciT decision with written findings
of fact.
(2) Upon a determination by City that no violation has
taken place, City shall refund to Grantee without
interest aZl monies drawn from the Letter of Cred-
. it by reason of the alleged violation, less all
costs and attorneys' fees incurred by City as a
result of Grantee's appeal.
G. If said Letter of Credit or any subsequent Letter of Credit
� delivered pursuant hereto expires prior to 15 months after
the expiration of the term of this Franchise, it shall be
renewed or replaced during the term of this Franchise to
provide that it will not expire earlier than 15 months after
'the expiration of this Franchise. The renewed or replaced
Letter�of Credit shall be on the same form and with a bank
authorized herein and for the full amount stated in para-
graph A of this section.
H. If City draws upon the Letter of Credit, or any subsequent
Letter of Credit delivered pursuant hereto, in whole'or in
part, Grantee shall replace the same within three days and :
� shall deliver to City a like replacement Letter of Credit
for the full amount stated in Paragraph A of this section as
a substitution of the previous Letter of Gredit.
I. If any Letter of Credit is not so replaced, City may draw on
said Letter of Credit for. the whoie amo�nt thereof and hold
61
the proceeds, without�interest, and use the proceeds to pay
cpsts incu_rred �y City in performi�.g and paying for any or
:� "
all of the obligatipns, duties and responsibilities of
�rantee under this Franchise that are �ot performed or paid
�'or ��r�Grantee pursuant hereto, including attorneys' fees
ineurred by the City in so performing and paying. The fail-
ure to so replaee any Letter of Credit may also, at the
option of City, be deemed a default by Grantee: under this
Franchise. The drawing on the Letter of Credit by City, and
use of the money so obtained for payment or performance of
the Qbligations, duties and :responsibil�ties of Grantee
which are in de�ault, shaZl'not be a waiver or release of`
A . 5uch default.
J, The coilection by ,City of any damages, monies or penalties
from the Letter of Credit shall not affect any other right
or remedy available to City, nor shall any act, or failure :
to aGt, by City pursuant to the Letter of Credit, be deemed
a waiver of any right of City pursuant to this Franchise or
otherwise.
�ECTION 5. BONDS
A. At the commencement of this Frar�chise, and at all times
thereafter until Grantee has liquidated alT of its obliga-
�ions with City, Grantee shall maintain with City a bond in
� the sum of Three Hundred Thousand Dollars {$3Q0,000.00) in
such form and with such sureties as shall be acceptable to
City, conditioned upon the faithful performance of Grantee
o£ this Franchise and the acce�tanee hereof given by Grantee
: �; _ _
.. __ _ __ _ _ __ .,__.:.__ _..
62
and upon the further condition that in the eve�t Grantee
� shall fail to comply with any law, ordinance or regulation,
there shall be recoverable jointly and severally from the
principal and surety of the bond, any damages or-losses:
suffered by City as a result,•including the full amount of :
any compensation, indemnification or`cost of removal o£ any
property of Grantee, including a reasox�able allowance for
" attorneys' fees and costs (with interest at two (2%) percent
in excess of the then prime rate), up to the full amount of
the bond, and which bond shall further guarantee payment by
Grantee of al.l claims and liens against City or any public
� , property, and taxes due:to City, which arise by reason of
the construction, operation, maintenance or use of the
System.
B. � The rights reserved by City with respect to the bond are in
addition to all other rights the Gity may have under this
Franchise or any other law.
Ce City may, in its sole discretion, reduce the amount of the
bond. :
•
_ _ _ _ ; ..,
_ __ , _ ._ _ _ . .__, . _ _ _
63 .
,�
ARTICLE IX.
� DEFAULT
SECTION l. NOTICE AND DEFAULT
A. City shall give written notice of default to Grantee `if
. City, in its sole discretion, determines that Grantee has:
(1) Violated any provision of:this Franchise or the
acceptance hereof, or any rule, order, regulation
or determination of the City, state or federal
government, not in conflict with this Franchise;
(2) Attempted to evade any provision of this Franchise
or the acceptance hereof;
:(3) Practiced any fraud or deceit upon Citg or sub-
� scribers;
(4) Made a material misrepresentation of fact in the
application for or negotiation of the Franchise;
_ or .
. (5) Incurred a 12 month or more delay in the con-
struction schedule.
B. If Grantee fails to cure such default within 30 days after
the giving of such notice (or if such default is of such a
charact�r as to require more than 30 days within which to
cure the same, and Grantee fails to commence to cure the
� same within said 30 day period and thereafter fails to use
reasonable diligence, in City's sole opinion, to cure such
default as soon as possible), then, and in any event, such
default shall be a substantial breach and City, at its
option, may elect to either cure the default or terminate
this Franehise as follows: .
64 _
(1) City may cure any default for the account at at
the cost and expense of Grantee and all sums so
� expended by City, including attorneys' fees
incurred in curing such default, whether suit be
brought or not, with interest thereon at a rate
per annum two (2%) percent excess of the then
prime rate, shall be paid be Grantee to City, upon
demand, and failure to so pay upon demand likewise
' may be deemed by City to be a default under this
Franchise.
(2) City may place the issue of revocation and termi-
nation of the Franchise before the Council at a -
� ' regular meeting af the City Council. If City
decides there is cause or reason to terminate, the
- following procedure shall be followed: :
; (a) City shall provide Grantee with a writ-
� ten notice of the reason or cause for
proposed termination and shall allow
� Grantee a minimum of 30 days subsequent
to receipt of the notice in which to
correct the default. .
(b) Grantee shall be provided with an oppor-
tunity to be heard at a public hearing `
�,
prior to any decision to terminate this
Franchise. -
: (c) In the event that City determines to
terminate this Franchise, the Grantee
, ,.
65
shall have a period of 30 days,
� • beginning the day next following written �
notice to Grantee of such decision,
within which to file an appeal with the
Board, pursuant to the then applicable
statutes and procedures of the Board.
During such 30 day p�riod and until the
Board determines the appeal, if an
appeal is taken, the Franchise shall '
remain in full force and effect, unless
the term thereof sooner'expires.
(d) If Board approves of the action of City,
� the Franchise shall terminate immedi-
: ately. If Board disapproves of the
action of City, the Franchise shall
remain in full force and effect for the
full term hereof unless sooner termi-
� nated in acc�rdance with the provisions
hereof, or applicable law or rules of
Board. � :
SECTION 2. CROSS DEFAULT
A. If Grantee should be in� default under any of the terms or
provisions of a franchise, or'acceptance thereof, of another
� _
city (then a party to ,a Joint Powers Agreement relating to
the System), at City's option, to- be exercised by notice to
Grantee given at any time while such default exists, such
default may be deemed by_Gity a default by Grantee under
this Franchise. ,k
66
Be This section, or any other section or pxovision of this
� Franchise, shall not be deemed to incorporate into this
Franchise by reference any other franchises.
�
•
_ _ _ r :�
67
ARTICLE X.
: FORECLOSURE, RECEIVERSHIP AND ABANDONMENT
SECTI4N 1. FORECLOSURE
. Upon the foreclosure or other judicial sale of all or a part
of the System, or upon the termination of any lease covering all
or part of the System, Grantee shall notify Gity of such fact and
such notification shall be treated as a notification that a
change in control of Grantee has taken place, and"the provisions
of this Franchise governing the consent to transfer or change in
ownership shall apply without .regard to how such transfer,or
change in ownership occurred.
SECTION 2. RECEIVERSHIP
� � Cit shall have 'the ri ht to cancel this Franchise 120 da s
Y J Y
after the appointment of a receiver or trustee to take over and _
cQnduct the business of Grantee, whether in receivership,
reorganization, bankruptcy or other action or proceeding, unless
such recei.vership or trusteeship shall have been vacated prior to
the expiration of said 120 days, or unless:
(a) Within 120 days after his election or appointment, such
receiver or trustee sha11 have fully complied with aIl
the provisions of this Franchise and remedied all
defaults hereunder; and
. (b) Such receiver or trustee, within said 120 days,.shall
have executed an agreement with City, duly approved bg
the Court having jurisdiction in the premises, whereby
68 :
such receiver or trustee assumes and agrees to be bound
� by each-and every provision of this Franchise.
SECTION 3. ABANDONMENT
Grantee may not abandon any portion of Sys�em without having
given not less than three months prior notice to City and Board.
Further, Grantee may not abandon any portion of System without
compensating City fo� damages resulting from the abandonment.
The'amount of damages resulting from abandonment and due 'City
shall be determined in the sole discretion of City. An abandan-
ment of any portion of the System as determined in the sole dis-
cretion of City shall be a cause for termination of this.
Franchise by City.
� �, - � �
� -
69
ARTICLE XIo
i� : PURCHASE ` OF SYSTEM
_ SECTION 1. GENERP,L _
A. If at any time Grantee receives a bona fide purchase offer
for the System which Grantee is willing to accept, a com-
plete copy of such offer shall prompt]:y be given to City and
City shall have the right to purchase the System according
to the terms of that offer. City shall exercise such:right
by submitting to Grantee, within six months after City's
actual receipt of the bona fide offer, notice that City
. _ desires to purchase:the System pursuant to said offer. If
� City does not exercise such right the System may be sold,
but only on the terms submitted to City. If any'changes are
made in the: purchase offer given �to�City, such purchase
offer, as so changed, shall again be given to City and City
shall have six months from actual receipt by City of the _
offer, as changed, within which to exercise its right to
purchase the System pursuant to the offer, as changed, all
: as above provided. I f City daes not exercise its right- to
purchase the System pursuant to any offer given to City pur-
suant to this paragraph, and the System is not sold to the
buyer and on the terms set out in the offer given to City,
� then the right of City to purchase the System shall con-
tinue, and all subsequent purchase offers shall be given to
City pursuant to this paragraph. Also, the City's right to
purchase pursuant to:this paragraph shall survive every sale '
- to a buyer and shall continue and be binding upon every
buyer of the System. .
70
B. Upon forfeiture, revoc�tion or termination of this Fran-
chise, or at the normal expiration of the Franchise term,
�
City shall have the right to purchase the System. Such
right shall be exercised upon written notice to Grantee
given within six months after the occurrence of any such
event.
SECTION 2. PROCEDURES
In the event Citg elects to exercise its right to purchase
the System as provided in Section 1B of this Article, the follow-
ing shall then apply: ,
A. City and Grantee shall negotiate alI terms and conditions of
. �
the purchase of the System.
� B. � If City and Grantee cannot agree upon the terms and condi-
tions of the purchase, City shall have the right to proceed
to arbitration. Arbitration shall commence and proceed
_ according to applicable Minnesota law except as follows:
(1) The parties shall, within 15 days of City's deci:-
sion to proceed to arbitration, appoint one arbi-
trator each who is experienced and knowledgeable
in the purchase and valuation of business
_ property. Arbitrators shall each agree upon the
selection of a third arbitrator, simiTarly quali-
fied, within 15 days after appointment of the
• .
second arbitrator.
(2) Within 30 days after appointment of all arbitra-
� tors and upon ten days written notice to parties,
_ • ,,;' _
: 71
the arbitrators shall commence a hearing on the
.�: terms and conditions of the purchase in dispute.
: (3) The hearing shall be recorded and may be trans-
cribed at �he request of either party. All hear-
ing proceedings� debates deliberations shall
be open to the public and at such times and places
as contained in the notice or as thereafter pub-
licly stated in the order to adjourn.
(4) The arbitration panel shall be required to deter-
mine the purchase price of the System according to
- the standards :established in paragraph C below. -
,
� (5) At the close of the hearings and within 30 days,
the arbitrators shall prepare written findings and
make a written decision agreed upon by a majority
of the arbitrators which shall be served by mail
upon City and Grantee.
(6) The decision of a majority of the arbitrators
sha11 be binding upon both parties except that
City may, in its sole discretion and without any
penalty or cost to City of any kind, withdraw its
offer to purchase within 90 days of'receipt of the �
final decision of a majority of the arbitrators.
� (7) Either party may seek judicial relief to the ex-
tent authorized under Minnesota Statutes, M.S.A.
§572.09 and §572.19 as the sme may be amended,
and," in addition, under the following circum-
stanees:
!+•.
, - � 72
(a) A party fails to select an arbitrator; :
� (b) The arbitrators fail to select a third
arbitrator;
(c) One or more arbitrator is unqualified;
- (d) Designated time limits have been ex-
_ ceeded; '
(e) The arbitrators have not proceeded expe-
ditiously; or .
(f) Based upon the record the arbitrators
- abused their discretion:
_ (8) In the event a Court of competent jurisdiction
determines the arbitrators have abused their dis-
� �
cretion, it may order the arbitration procedure
repeated and issue findings, orders and direc-
tions, with costs of suit to be awarded to the
prevailing party.
(9) Cost of arbitration shall be borne equally.
C. The purchase price of the System to be paid by City sha11 be
the cost less depreciation (as shown on the books and rec-
ords of Grantee) or market value, whichever is less. Good-
will shall not be included in the purchase price of the-.
System.
� D. Grantee expressly waives its rights, if any, to relocation
costs that might otherwise be provided by law.
E. The date of valuation shall be no earlier than the day fol-
lowing the date of revocation, forfeiture, expiration or
termination of this Franchise and no later than the date
; City makes a written offer for the 5ystem.
' �3
ARTICLE XII.
MISCELLANEOUS
� SECTION 1. TRANSFER OF OWNERSHIP OR CONTROL
A. This Franchise shall not be assigned or transferred, either
in whole or in part, or leased, sublet or mortgaged in any
manner, nor shall title thereto, either legal or equitable
or any right, interest or property therein, pass to or vest
in any person without the prior written consent of City,
which consent shall not be unreasonably withheld. Further,
Grantee shall not sell or transfer any stock or ownership
interest so as to create a new controlling interest except
with the consent of City, which consent shall not be unrea-
� ' sonably withheld. The transfers described in this paragraph .
shall, in the so�.e discretion of City, be considered sale or
transfer of Franchise within the meaning and intent in the
: follawing paragraph. :
B. Any sale or transfer of Franchise, including a sale or
transfer by means of a fundamental corporate change,
requires the written approval of City. Any sale or transfer -
of Franchise shall be subject to the provision5 of Board
rules prohibiting certain ownership. The parties to the
sale or transfer of Franchise shall make a written request
to City for its consent. City shall replg in writing within
� 30 days of actual receipt of the request_and shall indicate
its approval of the request or its determination that a pub-
lic hearing is necessary. City shall conduct a publ:ic hear-
ing on the request within 30 days o£ such determination if
_ 74
it determines that a sale or transfer of Franchise may
� adversely affect the Grantee's subscribers.
C. Unless otherwise already provided for by local law, notice
of any such hearing shall be given 14 days prior to the :
hearing�by publishing notice thereof once in a newspaper of
general circulation in the City�. The notice shall contain
the .date, time and place of the hearing and shall briefly
state the substance of th� action to be considered by City.
Within 30 days after the public hearing, City shall approve
or deny in writing the sale or transfer request.
D. Any sale or transfer of Franchise, including a sale or
� transfer by means of a fundamental corporate change,
requires notification to the Board by City. The notifica-
tion shall be accompanied by the written certification of
- the transferee that it meets aTl of the requirements estab-:
lished by City for original Grantee including but not
limited to technical ability and financial stability. City
shall cause to be sent to the Board a copy of all ,public
documents related: to sale or transfer of the Franchise.
E. The parties to the sale or transfer of only this Franchise,
without the inclusion of the System in which at least sub-
stantial construction has commenced, shall be required to
� establish to the sole satisfaction of City that the sale or
transfer of only this Franchise is:in the public interest.
F, For purposes of this section, fundamental corporate change
means the sale or transfer of a controlling interest in the .
stock of a corporation or the sale or transfer of all or a
,
_ _ _ __ ,_ .- -_. ,_.;_ . .
75
majority of.a corporation's assets, merger (including a par-
ent and its subsidiary corporation), consolidation or crea-
� tion of a subsidiary corporation. For the purposes of this
Section, fundamental partnership change means the sale or
transfer of all or a majority of a partnership's assets,
change of a general partner in a limited partnership change
from a limited to a general partnership, incorporation of a
partnership, or change in the control of a°partnership. :
Ge The word "control", as used herein, is not limited to major
stockholders, but includes actual working control in what-
ever manner exercised. As a minimum, "control", as used
_ ,
herein, means a legal or beneficial interest (even though
� � actual working control does not exist) of at least five (5%)
percent or more. Every change, trans£er or acquisition of
control of Grantee shall make the Franchise subject to can-_
cellation unless and until City shall have consented'in
writing thereto, which consent shall not be unreasonably
withheld. For the purpose of determining whether it shall
consent to such change, transfer or acquisition of control,
City may inquire into the qualifications of the prospectice
controlling party, and Grantee shall assist City in any such
inquiry and pay all costs incurred by City in so inquiring,
including Citg staff time at a value determined by City.
� H. In the absence of extraordinary circumstances, City will not
approve any transfer or assignment of the Franchise prior to -
substantial completion of construotion of System, as deter--
mined solely by City.
. 76
I. In no event shall a transfer or assignment of ownership or
� control be approved without tranferee becoming a signator to
this Franchise.
T. Any transferee shall be subordinate to any right, title or
interest of City.
SECTION 2. REMOVAL AFTER TERMINATION.OR REVOCATION
A. At the expiration of the term for which this Franchise is
granted, or upon its revocation or termination, as:provided
. for herein, City shall have the right to require Grantee to '
remove, at Grantee's expense; all or any portion of the Sys-
tem from al1 -streets and public property within Ci�y. In so
removing the System, Grantee shall refill and compact at its
-� own expense any excavation that shall be made by it and
shall leave all streets and public property in as good a
. condition as that prevailing prior to Grantee's removal of
�the System, and without affecting, altering or disturbing in
any way electric, telephone or other utility cables, wires
or attachments. City- shall have the right to inspect and
approve the condition af such streets and public property
after removalo The Letter of Credit, Bonds, Insurance, Tn-
demnity and Penalty provisions of this Franchise shall re-
main in full force and effect during the entire term of
removal. :
� B. If, in the sole discretion of City, Grantee has failed to
commence removal of System, or such part thereof as was des-.
ignated bg City, within 30 days after . written notice of
; �;
77
City's demand for removal is given, or if Grantee has failed
• to complete" such removal within one year after written �
notice of City's demand for removal is given, City shall
have the right to exercise one of the following aptions:
(1) Declare all right, title interest to the Sys- -
tem to be in City with all rights of ownership
including, but not limited to, the right to oper- :
. ate the System or transfer the System to another
for operation by ite _
(2) Declare the System abandoned and -cause the System
_ or such part thereof, as City shall designate, to �
be removed at no cost to City. The cost of said
,� removal shall be recoverable from the Letter of
Credit, Bonds, Insurance, Indemnification and P�n-
. alties provided- for in this Franchise, or from
Grantee directly as a liquidated damage.
C. Any portion of the System not designated by City for
removal shall belong to and become the property of City
without payment - �o Grantee and Grantee shall execute
and deliver such documents�, as City shall request, in
: form and substance acceptable to City, to evidence such
ownership by City.
� SECTION 3. VJORK PERFORMED BY OTHERS
A. Grantee sha11 give notice to City specifying the names
and addresses of any'other entity, other than Grantee, -
which performs services pursuant to this, Franchise,
provided, however, that all provisions of this Fran-
chise remain the responsibility of Grantee. �,
?8 _
B. All provisions of this Franchi5e sha1T apply to any -
� subcontractor or others performing any work or services
pursuant to the provisions of this Franchise.
SECTION 4. INTEREST RATE
For purposes of this Franchise, prime rate shall mean
the interest charged from time to_time by the First National
Bank of Minneapolis for 90 day unsecured loans to commercial
borrowers of the highest credit rating. �
SECTION 5. GENERAL PROVISION ON RIGHTS AND REMEDIES
A. All rights and remedies given to City by this Franchise
- - shall be in addition to and cumulative with any and all
other rights or remedies, existing or implied, now or
� �
hereafter available to City at law or in equity, and
such rights and remedies shall not be exclusive, but
each and everg right and remedy specifically given by
this _Franchise or otherwise existing or given may be
exercised from time to time and as often and in such
order as may be deemed expedient by City, and the exer-
cise of one or more rights or remedies shall "not be
deemed a waiver of the right to exercise at :the same
time or thereafter any other right or remedy. No delay
or omission of Citg in the exercise' of any right or
� remedy shall any such right or remedy, nor:shall
any such delay or omission be construed to be a waiver
of or acquiescence to any default. The exercise of any
such right or remedy hy City shall not release Grantee
from its obligations, or any liability, under this :
Franchise. .
� . � . . � . � . � . �. - � . �. � � � Y" . � � � . . . . . .
79 :
B. In addition to al1 other remedies granted or available
� to City, City shall be entitled to the �restraint by
injunction of the violation, or attempted or threatened
violation, by Grantee af any terms or provisions of
th�.s Franehise, or to a decree compelling performance
by Grantee of any term or provision of this Franchise. .
SECTION 6. APPLICABLE LAWS AND COURT DECIS'TONS
SEVERABILTTY
A. Grantee and City shall, at all times, comply with all laws,
ordinances and regulations of federal state and City
government relating to System and this FranGhise.
B. If any law, ordinance or regulation shall require or permit
� ' Grantee to perform any service or shall prohibit G'rantee
from performing any service which may be in conflict with
the terms of this Franchise, then as soon as possible fol-
; lowing knowledge thereof, Grantee shall notify City of the
point of conflict believed to exist between such law, ordi-
nance or regulation.
Ce If City determines that a material provision of this Fran-
chise is affected by such law, ordi.nance or regulatian, �ity
shall have the right to amend, modify, alter or repeal any :
of the provisions of this Franchise to such reasonable ex-
� : tent as may be necessary to carry out the intent and purpose
of this Franchise, and Grantee hereby agrees to s,uch amend-
ment, modification, alteration or repeal of this Franchise.
D. To the extent any provision of the Offering or rules of
Board are not specifically set out in this Franchise or not
80
validly incorporated herein by reference, City from time to
` time may amend this Franchise to include such provision
effective as of the date of commencement of the Franchise
term or any such rule effective as of the date of commence-
ment of the Franchise term or adoption of the rule, which-
ever is later. Grantee, by acceptance of this Franchise;
consents to and agrees to be bound by any such amendments.
E. City reserves the right to revoke this Franchise and any
right or privilege of Grantee hereunder withaut incurring .
any obligation or liability to Grantee if any provision of
this Franchise shall be finally adjudged by a court of law �
invalid or unenforceable, and if City further finds that
�
such provision constitutes at that time a consideration
material to the continuance of the Franchise herein granted.
Fo If any term, condition or provision of this Franchise or the
application thereof to any p�rson or circumstance shall, to
any extent, be held to be invalid or unenforceable, the re-
mainder hereof and the application of such term, condition
and provision to persons or circumstances other than those
as to whom it shall be held invalid or unenforceable shall
not be affected thereby, and this Franchise and all the
terms, provisions and conditions hereof shall, in all other
• respects, continue to be effective and to be complied with.
SECTION 7. GRANTEE WILL NOT CONTEST VALIDITY OF FRANCHISE
Grantee agrees that it will not, at any time, set up against
City in any claim or proceeding, any condition or tern► of this
Franchise as unreasonable, arbitrary, void or that Gity had no
� . � . � � . . � . . � . . . . � - � . . � � ..w � . .. . ..
� . � . - � . . � , � . . ' � . ' . . ... ��_. � _ . . . .�
ai
power or authority to make such term or condition, but shall be
<• required to accept the validity of the terms and conditions of
this Franchise in their entirety.
SECTION 8. INTERPRETATION BY CITY OF FR.ANCHISE
In case of any dispute or as to the meaning, inter-
pretation or application of any term, provision or condition of
this Franchise, the Council of City in its sole discretion shall
resolve such dispute or question. •
� .
i - �
, 82
ARTICLE XIII.
• ADMINISTRATION AND ADVISORY BODY
SECTION 1. ADMINISTRATOR
The City Manager or the City Manager's designee shall be
responsible for the' continuing administration of this Franchise.
The administrator may be changed by� City from time to time by _
written notice given to Grantee.
SECTION 2. ADVISORY BODY
City may appoint an advisory body to monitor the performance
of Grantee in executing the provisions of this Franchise. The
advisory body shall perform all functions required 'of it by the
`� Council and applicable laws, ordinances, rules and regulations.
SECTION 3. DELEGATION OF AUTHORITY BY CITY
A. City reserves the right to delegate and redelegate from time
to time any of its rights-or obligations under this Fran-
�chise to any body or organization.
B. Any delegation by City shall be effective upon written
notice by City to Grantee of such delegation.
C. Upon receipt af notice'by Grantee of City's delegation,
Grantee shall be bound by all terms and conditions of the
delegation not in conflict with this Franchise.
D. Any `such delegation, revocation or redelegation, no matter
� how often made, shall not be deemed an amendment to this
Franchise or require ang consent of Grantee.
83 _
ARTICLE XIV.
• . JOINT SYSTEM, ACCEPTANCE,
INCORPORATION OF OFFERING, EXHIBITS, PUBLICATION
SECTION 1. OTHER FRANCHISES
Ae The System intended for City, may be part of a joint system
that serves the cities of Eden�Prairie, Edina, Hopkins, Min-
netonka and Richfield, Minnesota.
. B. Graritee will, in• good faith, apply for and accept, if
offered to it, a franchise (similar franehise) from each of
the other cities on all the same terms and conditions herein
provided, except provisions omztted as inapplicable.
C. Notwithstanding any other provision of this Franchise, if
� • less than all of the other of said cities offer a similar
franchise to Grantee, which is accepted by Grantee, Grantee
or City may cancel this Franchise and all of their obliga-
tions hereunder by written notice given to the other not `
later than 30 days after all the other of said cities shall -
have formally acted upon their respective franchise ordi-
nances,• provided, that if Grantee elects to cancel this
� Franchise pursuant hereto,, it must also cancel all other
franchises granted to it by the other of said cities
effective simultaneously
SECTION 2. TIME OF ACCEPTANCE; GUARANTEE; INCORPORATION OF
� OFFERING; EXHIBITS
. Ao Grantee shall have 30 days from the last date of adoption of
� a similar franchise by all of the cities listed in
Section IA of this Article, to accept this Franchise in
84
form and substance acceptable to.City. However, in no even.t
will acceptance occur later than 90 days after the adoption
• of this Franchise, unless the time for acceptance is
extended by City. Such acceptance by Grantee shall be
deemed the grant of this franchise'for all purposes.
B. Upon acceptance of this Franchise, Grantee shall be bound by
a1.1 the terms and conditions contained herein. Grantee
shall pravide all services and offerings specifically set
forth in the Offering to provide cable communicati�n service
within City and other cities included in or a part of a
joint system; and, by its acceptance of this Franchise,
Grantee specifically agrees that the'Offering of Grantee,
� • including all promises, affers, representations and induce-
ments contained therein, is specifically incorporated.by
reference and made part of this Franchise. The failure to
refer to the Offering in any specific provis�ons of this
Franchise shall not be a limitation on the obligation of
Grantee to fully comply with the Offering. Grantee further
acknowledges that all promises, offers, representations and
inducements contained in the Offering of Grantee were freely
and voluntarily made to City by Granteee`
C. The Offering shall be permanently kept and fi3ed in the
Office of the City Clerk and the ariginals or reproductions
� thereof shall be available for inspection by the publie
during normal business hours. Also, the Grantee may summa-
rize the Offering in a manner acceptable to City or repro-
duce the entire Offering, and shall have either at the
following locations in the following quantities:�
.85 :
(1} Office of the City Clerk - 1 copy;
(2) Administrator designated in this Franchise - 1
i
copy;
(3) Public libraries - 1 copy each;
(4) Office of_the City Attorney - 1 copy;
(5) Hennepin County Law Library 1 copy;
(6) Local office of Grantee - 1 copy;
(7) Office of any 5chool District in City - 1 copy.
D. In the event of conflicts or discrepancies between any part
of the Offering and the provisions of this Franchise or
between any part of the summary made by Grantee and the
Offering, those provisions which provide'the greatest bene-
� � fit to City, in the oginion of the Council, sha11 prevail.
E. Grantee shall have continuing responsibility for this Fran-
chise, and if Grantee be a subsidiary or wholly owned cor-
porate entity of a parent corporation, performance of this
Franchise shall be secured by guarantees of the parent cor-
poration in form and substance acceptable to City, which
shall be delivered at time of, and as part of,- acceptance of
this Franchise.
F. With its acceptance, also shall deliver to City an
opinion from its legal counsel, acceptable to City, stating
that this Franchise has been duly accepted by Grantee, that
� the quarantees have been duly executed and delivered, that
this Franchise and the guarantees are enforceable against
Grantee and the guarantors in accordance with their respec-
tive ter�ns, and which opinion shall otherwise be in form and
substance acceptable to City.
86
G. With its acceptance, Grantee also shall deliver to City true
and correct copies of documents creating Grantee and eviden-
. cing the power and authority referred to in the opinion of
Grantee's counsel, certified as of a then current date by
- public office holders to the extent possible and otherwise
by an officer of Grantee. .
H. Each exhibit is a part of this Franchise and each is specif-
ically incorporated herein by referencee The exhibits are
as follows:
Exhibit A- Map of Construction by Area, Including Time
Schedul.e .
Exhibit B - Rate Schedule
� � _
�
. 87
Passed and adopted this day of , 1987.
� ATTEST: CITY OF HOPKINS
By � g _
City Manager Mayor
By
City Attorney :
This Franchise is accepted, and we �gree to be bound by all its
terms and conditions.
MINNESOTA CABLESYSTEMS - SOUTHWEST
A Minnesota Limited Par.tnership
By: Minnesota Cablesystems, Inc.,
a Minnesota Corporation
Zts General Partner
. By
I ts -
• _
By
Tts
� _
�
: EXHIBIT B
� - GRANTEE SCHEDULE OF RATE5
Ie SUBSCRIBER NETWORK _ . _
A. Basic Rates
l. TIERS
Standard
150 Ft. Aerial Seniors &
Installation Monthly Homebound :
' ° (First Outlet)
TIER 1 Universal Service. $ 19.95 Free Free '
Converter not re-
quired for this - -- ,
service
TIER 2 Family Service.
Subscriber owns �
converter �_ $ 19.95 $ 3".95 $ 3.36
• , Subscriber rents
converter`from
Grantee � 19.95 Various Various
TIER 3 Full service.
Subscriber owns
converter $.19.95 $ 5.95 $ 5.06 .
Subscriber rents
converter from
_ Grantee $ 19.95 *Various *Various
TIER 3 Expanded Service.
(Expanded)(Included converter
: and unit) $ 19.95 $ 10.95 $ 9.31
2e Rates will remain constant for two years after com-
- mencement of construction of System or'until completion of all
construction required by Article V, Section 1 of this Franchise,
� whichever is longer as determined by City. :
3< Subscribers will have the option of renting various
types of converters as follows: ."' �
Grantee Converter Rate Schedule •
! . Initial Monthly
Description` Rate
7.e Block Converter $ 1.00
2. OAK L-35 1.50
3. Scientific Atlanta 6700
-set-up converter 2.50 ;-�
-Descrambler option 3.00. ;
..
-remote control option .4.�04
�addressable feature 5:OQ
� (not initially available)
The rental rate shall be added to the apprapriate base rate
shown in the table above if the subscriber rents the converter
from Grantee. Subscribers may choose to rent or buy converters
� from sources other than the Grantee, however; a Grantee converter
or descrambler will be necessary for premium services.
4. The standard installation rate will include the
instaZlation of 150 feet or less of aerial cable drop to each
subscriber dwelling within the initial service area. Aerial
installations within the initial service area in excess of 150
feet will be charged at cost on a time and materzal basis.
Underground installations will be charged at cost on a tzme and :
material basis. Free standard installation on TTER5 2 and 3 wi11
be provided within the first 30 days of energizing newly com-
pleted construction areas in the initial service area. �
� 5. For dwelling units located within the initial service
area,but in areas where the density is lower than 40 homes per
street mile, Grantee retains the right to assess the following
additional installation charges pursuant to the following con-
' ditions: . :
�,
e2-
Density/Mile Additional Cost Per
� Installation
.
� 30 to 39 . _ $ 40.00
20 to 29 $ 60.00
1 to 19 $ 80.00 :
- a. There will be no free installation •
period. • :
b. Grantee will make special financial ar-
� rangements to allow subscribers to pay
� the installation charges over time as
. part of the monthly billing at the pre-
vailing terms on consumer loans.
c. The rates quoted are based on currentl�
� , projected costs of construction. Should �
the cost of construction be less than
anticipated, installation charges will
� be lowered accordingly.
6. Senior Citizen and Hamebound discounts of 15% wi11 be
offered on standard installation and monthly service of TIERS 2
and 3. The discount is available to all dwelling units where the
head of the household is a senior, b2. years of age or older, or
homebound. .
B. Extra Outlets
*Tnstallation (At
time of initial
� Installation) Monthly
TIER 1 Converter not required $ 10.00 each Free
TIER 2 Subscriber owns converter $ 10.00 each $1.95 each
Subscriber rents converter
from Grantee $ 10.00 each **Various
_ _ _..__ . _. __. __ .: ::_ ._. _..
.,
_ _ __ _�_ __ : _ . _ _ :
-3-
TIER 3 Subscriber owns eonverter $ 10.00 each $3.95 each
Subscriber rents canverter �
� from Grantee $ 14.00 each **Various
*Each outlet installed after the initial installation wi17. be
$14.95 each. _
**Same Converter rental option as provided for under Section IA
of this Exhibit B.
C< Reconnection : .
Charges for reconnection of existing installations shall be
$14e95 for each reconnection regardless of the number:of outlets.
D. Commercial Rates For Subscriber Network Services
These rates will be subject to negotiation and will depend
on the number of outlets required and the type of services selec-
ted. A typical commereial rate for degartment�store requesting :
• 14 outlets on TIER 3 with no converters and no premium pay would
be: .
Installation (at cost on a time and materiaZ basis)
Monthly Rate lst outlet $15.00
2nd outlet $10.00
3rd outlet $ 5.00
Additional
outlets $ 4.00
E. FM Rates : _ _
FM service is included in the xate structures for TIER 2 and
_ SIER 3. _ _: _ . ___._ _:_._ _ _ _ _:.... _ _ _ __ _ _ __
F. Multiple Dwelling Rates.
1. Rates will be negotiated depending on the type of
� service requested and the number of dwelling units served.
Discounts are generally negotiated far Tiers 1, 2, and 3, and
subscribers h�ve the option to pay individually for premium ser-
vices.
-4- . _
2. Typical Percentage Discounts for Tier 3 Service
Low Rise (Fewer than four stories
� with no elevator) • Fewer than 25 units � 5%
More than 25 units � 10%
High Rise 30 to 49 units - _ 10 �
50 to 99 units - 15% .
. 100 to 199 units - 20%
.. 200 units upwards - 25%
3e If the multiple dwelling is occupied by only senior
: citizens or hamebflund persons or both, both the multiple dwelling �
discount and the seniors and homebound discount will apply to the
monthly basic cable rate.
G. Miscellaneous Provisions Regarding Converter,s.
1. No deposit�will be charged on the rental of Grantee
�' converters. Grantee, however, reserves the right to institute a
converter deposit if excessive loss or damage to the converter
units is experienced.
• 2. The various monthly ccsnverter rental rates include the
replacement�and/or repair of defective units.
3. Subscribers renting Grantee converters will have the
option to buy them at a price based on the type of converter and :
length of time the converter has been rented. :
H. Premium Services.
_ _ .--__ _ _ _ _. _
1. Premium service rates shall be as follows:: �-
: MONTHLY
� Home Theater Network $ 3.95
Home Box Office 7.50 ,
CINEMAX 7.50 :
The Movie Channel 7.50
Showtime 7.50 _
Premiere 7.50
;:
�
_ _ _ _. _ ;� , .. : _ _ .. .
-5- -
2. A$1.00 per month discount will be offered to subscrib- �
ers taking two or more premium services other than Home Theater
� Network at any one timee .
: 3. Lockout devices will be available free of charge: _ .
4. Installation for premium services shall be free with
the initial installation of Tier 2 or 3 service. Thereafter, any
number of premium services added at the same time shall be added
at a maximum cost of $14.95.
5. Pay-per-view service shall be charged on the_basis of
the event chosen. The range of charges is expected to be in the
order of $2.00 to $5.00 per event.
� II.� �SERVICE5 TO GOVERNMENT AND EDUCATION FACILITIES
(INCLUDING LIBRARIES)
A. Installation Fees
1. One cable outlet (per facility) Free
2. More than one outlet (per facility) At cost of time
and materials
B, There shall be no monthly charge for Tier 1, 2, or 3.
III. RATES FOR HOME SECURITY STATUS MQNITORING
Installation Monthly
A. Single: fire alarm,
medic aTert, or
� : security alert button $ 49.95 rnaximum $ 4.95 maximum
Double: any two
services 99.95 maximum 5.95 maximum
Triple: all three
services 119.95 maximum 6.45 maximum
, j
__ _ _ _ _ _. _ ._. _.. . __: .. _._.._ _ .
��
_ -6-
Intrusion sensor '
system of Grantee or
• other provic�er variable 4.95 up
depending on depending on
options taken options taken
and provider and provider .
of system of system
Be This rate schedule is exclusive of other third party charges
that may be Ievied by emergency agencies or city licensing.
C. Promotional Discounts
Rates in this Exhibit B are maximum rates, Grantee 'may
allow special discounts during promotional or other marketing
_
activities.
IV. INSTITUTIONAL NETWORK
• A. Installation
Grantee's installation charge will, be hased upon the cost of
material and labor. Grantee will provide an installation quote
free of charge on request,of any potential institutional network
subscriber. Grantee may waive the installation charge.
Institutional subscribers must supply any conduits, race-
ways, trenches or other passages necessary to permit installation
of cable from the distribution line to the location(s) of the
terminal equipment. . _ . _ , __ .-- _._.: _
B. Institutional Network Rates �
1. Institutional rates depend upon the"use (video or.data
� .
channel), the number of points involved in the communication,
whether the communication is one-way or two-way, and whether the
: use is fuTl-time (24 hours a day, 365 days a year) or only part-
time (on an hourly basis). Packet data rates are calculated on a
�* .
_ _ _ _. _ „ _ . _
��
_7_
use basis per 1,fl00 packets of data. One packet is 80 characters
or less. _
� 2. Rates for transmission capacity do not include the
costs of terminal equipment modulators, modems, and demodulators.
3. The- institutional subscriber may be charged $20 per
month. For this charge Grantee shall provide communications
security system equipment installed on the subscriber's premises
by Grantee. Such equipment may include addressable taps, trans-
mitter and filters or converter as required and allow access to
the special channels from 300 to 402 MHz.
' 4o Rates are as follows:
- TYPE OF SERVICE . R.ATE
� a. � For Video (6MHZ*} Channels, used fu�.l-time ,
_ twenty-four hours a day)
(1) One point to one other point on network $435/month max.
(2) One point to one other point on network
and return $865/month max.
(3) One point to all other points on network $3,000/manth max.
(4) One point to all other points on network
and return $6,000/month max.
b. For Video (6MHZ) Channels, used part-time
{1) From one point to one other point on network $7.50/hour max.
(2) From one point to one other point on network ° `
and xeturn $15.00/hour max.
(3) From one point to all other points on network $50.00/hour max.
� 4 From one oint to all other oints on network
� ) P P
and return $110.00/hour max.
(5) Special TeTeconference Yearly Rate for one
hour per business day $1,800.00/year ma�
>
_ . . _ _ . _ , .Y
_g_
: c. For data channel **, full-time (0.25MHz}
:� (1) From one point to one other point on network $36/month max.
(2) From one point to one other point on network
and return $56Jmonth max.
� (3) From one point to all other points on network $232/month max.
'(4) From one point to all other points on network
and return' • $366/month max.
d. For data channel, full-time (0.5QMHz)
(1) From one point to one other point on network $52/month max.
(2) From one point to one other point on network
and return $100/month max.
(3) From one point to all other points on network $355/month max.
(4) From one point to all other points on network
and return $596/month max.
� e. _For data channel, full-time (1.00 MI3z) :
(1) From one point to one other point on network $87/month max.
(2) From one point to one other point on '
_ and return $168/month max.
(3) From one point to aiI other points on network $614/month max.
(4) From one point to all other points on network
and return $1,050/month max.
f. For data channel, full-time (2.00MHz)
(1) From one point to one other point on network $157/month max.
, _
(2) From one point to one other point on network �� -
and return $308/month max.
(3) From one point to all other points on network $1,132/rnonth max.
� (4) From one point to all other points an network
and return $1,960/month max.
a
_ _ . .� :_._, __
-9- :
g. Packet Switching Data Network
� (1) Data transmission charge $1.00/1�00 packet
. .
�- (2) Connection to Packet Network $100
(3) Cable Access Processor lease - $25/month
*To calculate the rate for FM video channels, multiply the 6Ngiz
.rate by 2.3. _
**Data channels may be used for analog signal transmission such
as audio.
�
'�:
-- 7 .
. . . . . . . � � . . � . . . . , � . . . � . J. . � . .. . � .
_10_
`� �
I �
�"� �
���� :
r�oT�eN
� ' ADOPTION OF CABI�E.TELEVISION FRANCHISE ORDINANCE
`
I move that the ordinance as presented to this Council
granting a cable television franchise in this City to _
I�2innesota Cablesystems � Southwest, a Minnesota Limited
Partnership, and the Findings set out in that ordiriance, be .
- adopted and publishedo . .
I further move that the Mayor and Manager be authorized,
for and on behalf of the City, to sign and deliver the fran-
chise, and all other documents to be signed�and delivered by
• the City in connection with the franchisee �
� . .