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HomeMy WebLinkAbout1197 - ADMIN Ordinance - City Council - 1972/08/21ORDINANCE NO. 1197 AUGUST 21, 1972 7B IN ORDER TO ENACT RULES AND REGULATIONS SETTING FORTH TERMS AND CONDITIONS FOR THE INSTALLATION, MAINTENANCE AND OPERATION OF A BROADBAND TELE- COMMUNICATIONS NETWORK (BTN) FOR THE PURPOSE OF TRANSMISSION FOR CATV AND OTHER SERVICES, ELECTRICAL IMPULSES OF TELEVISION, RADIO AND OTHER INTELLIGENCZES. EITHER ANALOG OR DIGITAL, FOR SALE TO OR USE BY INHABITANTS OF THE CITY OF ST. LOUIS PARK, MINNESOTA THE CITY OF ST. LOUIS PARK DOES ORDAIN: Section 1. General Provisions. (a) Short Title. This ordinance shall be known and may be cited as the "Cable Television Franchise Ordinance". (b) Substantive Legal Base. This ordinance is adopted pursuant to authority granted by Section 1 and 9, of the St. Louis Park Home Rule Charter. (c) Findings and Vote of Council. (1) After conducting public hearings, and published notice as provided for by law, an affirmative vote of five (5) members of the City Council shall be required to effect the grant of any franchise hereunder, also, any franchise granted hereunder shall not be exclusive and the City reserves the right to grant similar franchises to any persons at any time. (2) The Council further must approve the legal, character, financial, technical, and other qualifications of any grantee hereunder and the adequacy and feasibility of its construction arrangements. Section 2. Definitions. For the purpose of this ordinance, the following terms, phrases, words, and their derivatives 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 word "shall" is always mandatory and not merely directory. (a) "City" is the City of St. Louis Park. (b) "Grantee" is a person, firm, partnership, association, corporation, company, organization granted a franchise hereunder. (c) "Council" is the City Council of the City of St. Louis Park. (d) "Person" is any person, firm, partnership, association, corporation, company or organization. (e) "Public Agency" is any governmental unit or political subdivision of the State of Minnesota including school districts and other special purpose governmental bodies. • (f) "Non -Profit Agency" is any non-profit corporation or associations, charitable organizations, and other organizations not operated for profit. (g) "Subscriber" is any person who receives service from a grantee hereunder. (h) "Broadband Telecommunications Network" shall mean any wires, wave guides or other conductors, equipment or facilities designated, constructed or used for the purpose of transmission of electrical impulses of television, radio and other signals either analog or digital, directly or indirectly for sale or use by inhabitants of the City. (i) "Installation" is the fixing for use or the putting in place in a room the equipment necessary for reception of signals from the CATV system, exclusive of a television or radio receiver. (j) "Gross Subscriber Revenue" all revenue derived from service of any kind furnished by the company within the corporate limits of the City (including but not limited to receipts from service charges, installation charges, advertising, rental income from use of facilities) other than revenue derived from transactions in interstate or foreign commerce, from service to the United States of America, or any agency thereof, from service to the State of Minnesota or the City of St. Louis Park, or any organization receiving services at cost, or from taxes collected by the company from subscribers on behalf of any governmental unit. (k) "Duplex Network" is a two-way communications network consisting of coaxial cables and amplifiers which can carry signals in two directions. (1) "Dual Cable Network" is two coaxial cables each capable of two-way communications fastened together or otherwise connected used for transporting television and radio signals. (m) "Commencement of Service" - service will be considered as having been commenced when sufficient distributive facilities have been placed in use so as to offer full network service to at least twenty-five (25) percent of the inhabitants of the City. Section 3. Grant of Authority. A nonexclusive franchise to construct, operate and maintain a CATV system within the City may be granted by the Council to any person, firm, partnership, association, corporation, company or organization who or which offers to furnish and provide such system under and pursuant to the terms and conditions of this ordinance. No provisions of this ordinance may be deemed or construed as to require the granting of a franchise hereunder when in the opinion of the Council it would not be in the public interest to do so. -2- r Any franchise granted hereunder grants to the holder a nonexclusive right to construct, operate and maintain a CATV system in, upon, along, across, above, over and under, streets, alleys, easements, open areas, public ways and public places now laid out or dedicated, and all extensions thereof, and additions thereto, in the City. Section 4. Duration of Franchise. (a) Any franchise and the rights therein, granted hereunder shall take effect in accordance with the provisions of Section 40 herein and continue in full force and effect for a term of fifteen (15) years after which five (5) year renewal options will be in force. In the event that either the City or a grantee elects not to renew the franchise at any option period written notification of such intent must be submitted by such party to the other party at least six (6) months prior to any such action. (b) Right of Renewal. At the expiration of any franchise, granted hereunder, the grantee shall have the right subject to a renegotiation of terms and conditions to obtain a renewal of the franchise if the Council finds that the grantee's performance under the ordinance has been in the best interests of the City in accordance with the procedures set forth by Section 36 of this ordinance. Section 5. Limitations of Franchise. (a) Privileges Specified. No privilege or exemption shall be inferred from the granting of any franchise granted under this ordinance unless specifically prescribed. (b) Privileges Subordinate. Any privilege claimed under any such franchise by the grantee in any street or other public property shall be subordinate to any lawful occupancy of the streets or other public property or to any present or future improvements such as sidewalks and roadway widening. (c) Non -Transferrable Privileges. Any franchise granted hereunder shall be a privilege to be held in personal trust by the original recipient. It cannot in any event be sold, transferred, leased, assigned, or disposed of, in whole or in part, either by forced or involuntary sale, merger, consolidation or otherwise, without the prior consent of the Council expressed by resolution, and then only under such conditions as may therein be presecribed. Any request for such transfer or assignment shall be made only by an instrument in writing, a duly executed copy of which shall be filed in the office of the City Clerk thirty (30) days prior to any such transfer or assignment. Approval for such transfer or assignment shall not be unreasonably withheld by the City. (d) Transfer of Rights. Any right or power in, or duty impressed upon, any elected official, officer, employee, department, or board of the City shall be subject to transfer by the City to any other elected official, officer, employee, department or board of the City. 3- (e) A Grantee to Have No Recourse. A grantee of a franchise hereunder shall have no recourse whatsoever against the City for any loss, cost, expense, or damage arising out of any provision or requirement of this ordinance or of any franchise issued hereunder or because of its enforcement. (f) Pole Space Obligation. Any such franchise granted shall not relieve a grantee of any obligation involved in obtaining pole space from any department of the City, utility company, or from others maintaining poles in the streets. (g) Previous Rights Abandoned. Any franchise granted hereunder shall be in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by a grantee or any successor to any interest of grantee, of or pertaining to the construction, operation, or maintenance of any Cable Communications system in the City; and the acceptance of any franchise hereunder shall operate, as between grantee and the City, as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the City, to the effect that, as between grantee and the City, any and all construction, operation and maintenance by the grantee of any cable system in the City shall be, and shall be deemed and construed in all instances and respects to be, under and pursuant to said franchise and not under or pursuant to any other right, privilege, power, immunity, or authority whatsoever. Section 6. Franchise Payment. (a) Payment to the City. A grantee of a franchise hereunder shall pay to the City on or before March 1st of each year following the commencement of cable casting an amount of $ or an amount equal to five percent (5%) of the annual gross subscriber revenues received by the grantee for services provided within the City during the previous calendar year, whichever amount is greater, for the use of the streets and other facilities of the City in the operation of the CATV system and for the municipal supervision thereof. Sales tax or other taxes levied directly on a per -subscription basis and collected by the grantee shall be deducted from the local gross operating revenues before computation of sums due the City if made. This payment shall be in addition to any other payment owed to the City by the grantee. In the event that any payment is not made by March 1st, as provided above, interest on the amount due, as determined from the gross operating receipts of the certified public accountant, shall accrue from such date at the annual rate of percent ( 7). The amounts designated in this section may be amended no more than once each year by the City Council consistent with increased costs for municipal supervision and after a public hearing. Section 7. Security for Performance. (a) Security Fund or Surety Bond. Within thirty (30) days after the effective date of this ordinance, the grantee of a franchise hereunder agrees to deposit with the City and to maintain on deposit for the term of this franchise the sum of $300,000 in cash as a security fund or a surety bond, to be approved by the City, in the amount of $300,000, I--7®7 -4- • • for the faithful performance of the terms of this franchise, for compliance with all orders, permits and directions of any department of the City having jurisdiction over the acts or defaults under this or other ordinances and for the payment by the grantee of claims, liens, and taxes due the City which arise by reason of the contruction, operation, or maintenance of the Broadband Telecommunications Network. (b) Rights Reserved to City. The rights reserved by the City with respect to the security fund are in addition to all other rights the City may have under this ordinance or any other law. (c) Reduction of Security. The City Council may, from year to year in its discretion, reduce the amount of money required in the security fund or surety bond. Section 3. Liability Insurance and Indemnification. (a) Public Liability Insurance. 61 _707 `/ (1) A grantee of a franchise hereunder shall concurrently with the award of a franchise hereunder, furnish to the City, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a general comprehensive liability insurance policy in a company approved by the City Council, protecting the City and all of its officers, boards, commissions, agents, employees and appointees against liability for loss or damage for personal injury, death and property damage, occasioned by the operations of the grantee under the franchise, with minimum liability limits of Five Hundred Thousand and No/100 Dollars ($500,000) for personal injury or death of any one person and One trillion and no/100 Dollars ($1,000,000) for personal injury or death of two or more persons in any one occurrence, and Two Hundred and Fifty Thousand and No/100 Dollars ($250,000) for damage to property resulting from any one occurrence. (2) The policies mentioned in the foregoing paragraph shall name the City, its officers, boards, commissions, agents, employees and appointees as additional insured and shall contain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to the City thirty (30) days in advance of the effective date thereof; if such insurance is provided by a policy which also covers the franchisee or any other entity or person other than those above named, then such policy shall contain -5- • an endorsement concerning gross liability, which endorsement shall be subject to approval by the City Attorney. (b) Indemnification. (1) A grantee shall pay, and by its acceptance of a franchise, grantee hereunder, the grantee agrees that it will pay, all damages and penalties which the City may be required to pay as a result of granting a franchise, and the grantee shall save the City harmless from any and all liability arising out of a franchise, the granting of the same or the operation of the system hereunder, provided, however, that nothing herein shall make the grantee liable for occurrences or acts which are wholly or partially the fault of the City and in respect of which the grantee is not at fault. (2) A grantee shall pay all expenses incurred by the City in defending itself with regard to all damages and penalties payable because of an act for which the grantee is liable by virtue of paragraph 1 of this section 3 (b), including, but not limited to, all out-of-pocket expenses such as attorneys' fees, and the reasonable value of any services rendered by the City Attorney or his assistants. c Review of Coverage. The City Council shall 70g(-2.) annually review the above insurance provisions; and, if it is determined that the insurance coverage is inadequate, additional insurance may be required as reasonably determined by the City Council and shall be provided by the grantee. Section 9. Grantee Rules. A grantee of a franchise hereunder shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable it to exercise its rights and perform its obligations under this ordinance and to assure an uninterrupted service to each and all of its customers; provided, such rules, regulations, terms and conditions shall not be in conflict with the provisions of this ordinance, the ordinances of the City or the laws of the State of Minnesota or the United States. A certified copy of such rules, regulations, terms and conditions shall be filed with the City Clerk at the time of filing the annual report as provided in Section 11 herein. Section 10. Service Contract. If a written service contract is used by a grantee in its dealings with subscribers, the grantee shall receive Council approval of the form of and terms of such contract prior to entering into any such service contracts, the grantee shall make no changes in the form or terms of any such service contract without prior approval of the City Council by resolution duly adopted. -6- • Section 11. Books and Records of Grantee. (a) Installation Maps. The grantee of a franchise hereunder shall file with the Director of Public Works an accurate copy of maps and/or plats of all existing and proposed installations upon the streets. These maps and plats shall conform to the requirements of the Director of Public Works and shall be kept continuously up-to-date. (b) Annual Report. A grantee shall also file within sixty (60) days following the conclusion of each fiscal year of the grantee an annual report prepared and audited by an independent certified public accountant showing the yearly total gross receipts and payments to the City. This report shall be submitted with such other reasonable information as the City Manager shall request with respect to the grantee's CATV operations within the City. (c) Grantee Ownership. A grantee shall continually keep on file with the City a current list of its shareholders holding 107 or more of the outstanding stock and officers with their current addresses. (d) Records Available for Inspection. All books and records of a grantee concerning its operations within the City shall be made available at reasonable times for inspection and audit by the City Manager or his designee within thirty (30) days after any request for such inspection or audit shall be made. Section 12. Filing Communications with Regulatory Agencies. Copies of all petitions, applications and communications submitted by a grantee of a franchise hereunder to the Federal Communications Commission, or other Federal or State regulatory commission or agency having jurisdiction in respect to any matter affecting CATV operations, so far as the same might affect the service or operations of a grantee in the City, shall also be submitted simultaneously to the City by filing the same with the City Manager. Section 13. Fees and Rates. Fees or rates charged by a grantee of a franchise hereunder for any service provided shall be fair and reasonable and non-discriminatory and designed to meet all necessary costs of service including a reasonable return on investment. Initial and all subsequent modifications of such fees or rates shall be set for the operation and maintenance of a Broadband Telecommunications Network as fair and reasonable under existing conditions in connection with the rights granted herein, and all such rates shall be filed with and approved by the Council after hearing before such rates become effective and the service initiated. Fees and rates for any grantee of a franchise hereunder shall be in accordance with the Schedule of Charges set forth in grantee's application for a franchise hereunder incorporated herein by reference. (a) Installation. (1) Single Family Dwelling, Multiple Family Dwelling, Commercial, Mobile Homes. First Connection - Not to exceed $ one time fee. -7- • Second Connection - Gratis if installed at time of first installation. Additional Connections - Time and material cost of the grantee in making the installation(s), however, not to exceed $ per installation. (2) In addition the regular connection fee may be waived or reduced during certain sales campaigns the grantee may swish to conduct during the year. Waiver or reduction o installation fee shall be publicly advertised. Such advertisement shall specify the amount of reduction and the effective dates of such reduction. (3) Schools, libraries, city offices and other public buildings owned or operated by public agencies. There shall be no charge for a single installation in each school building, library, city office, or other public building in the City. Additional installations, if requested, shall be at time and material cost. (4) The grantee shall make no additional service charge for the installation of a converter. (b) Monthly Service Charge. (1) Single Family Dwelling. First Outlet - Not to exceed $ Each additional outlet - Not to exceed $ (2) Multiple - Family Dwellings First Outlet - Not to exceed $ Each additional outlet - Not to exceed $ (located in the same housing unit). Multiple Unit discount rates are applicable when one billing is made to the owner of or more dwelling units in the same building. When it is required that the tenants be billed individually, the single unit rate will apply. (3) Commercial. First Outlet - Not to exceed $ Each additional outlet - Not to exceed $ -3- Multiple Unit discount rates are applicable when one billing is made for or more individual units in the same commercial establishment. Otherwise, the single unit rates will apply. (4) Mobile Homes. Shall be classified as single family dwellings for the purpose of this ordinance. Multiple Unit discount rates are applicable when one billing is made to the owner of five (5) or more individual dwelling units in the same complex. When it is required that the tenants be billed individually, the single unit rates will apply. (5) Schools, libraries, city offices and other public buildings. For each installation or extension thereof provided to a school building, library, city office or other public building in the City, there shall not be a monthly service charge. This applies without regard to the number of installations or extensions thereof. (c) Charge for Converter. A grantee shall make no monthly service charge for the use of a converter, however, a grantee may establish a reasonable security deposit requirement for the use of a converter. (d) Disconnection. There shall be no charge for disconnection from the CATV system other than for seasonable disconnections for which a reconnections charge not to exceed $ may be made. (e) Change in Rates and Fees. (1) There shall be no increase in the initial rates and fees for three (3) years after the commencement of service. (2) Any subsequent increase requests in addition to other factors described in this section shall take into consideration the consumer price index for the Minneapolis -St. Paul area compiled by the U. S. Department of Labor Statistics and may be supported by additional reasonable costs for increased services or additional services. A grantee shall be obligated to pay the reasonable costs of determining an appropriate increase including, any costs incurred by the City for the retention of a rate expert to assist the City in its deliberations concerning the requested rate increase. (3) In addition, for the purpose of determining the reasonableness of grantee fees and rates, the books of the grantee shall be open to inspection by the Council or its agents at all reasonable times. If a grantee requests a change in fees it shall present in detail -9- in writing the statistical basis, in addition to other requirements as set out in this section, for the proposed fee change at least sixty (60) days prior to the proposed effective date of such fees and rates. (4) If the proposed increase is mutually agreeable to the Council and to the grantee such increase may be proposed in accordance with the provisions of this section without a rate expert's report. Before any increases to be charged by a grantee are approved by the Council, the Council shall hold a public hearing on the matter. A notice of such hearing shall be published at least once in the official newspaper not less than twenty (20) days prior to the date of the hearing. At the hearing the Council may take such steps as it deems necessary to obtain other available information and data before granting or denying approval of the grantee's request. (f) Cablecasting Rates for Educational and Governmental Users. A grantee's cablecasting production costs, cablecasting rates, signal sending rates, and all subscriber fees shall be subject to the approval of the City. However, a grantee will be obliged to provide the free use of cable channels for educational and governmental users in accordance with the guidelines set down by the FCC's 3rd Report & Order. The grantee may charge an amount not to exceed its actual costs, which costs shall include a fair return on investment as determined by the City for the use of the grantee's personnel, studio and production equipment. (g) Per -Program or Per -Channel Charges. Per -program or per - channel charges on origination and access cablecasting shall be fair and reasonable and designed to meet all necessary costs of service including a fair return on the investment as determined by the City. The grantee shall annually prepare and submit to the City for approval a schedule of programs and charges proposed for per -program or per - channel subscription usage. Unscheduled programs may be provided as available at per -program or per -channel rates consistent with established rates for similar scheduled programming. Section 14. Use of Telephone Facilities. When and in the event that a grantee of any franchise hereunder uses for his telecommunications network, facilities or rights of way furnished to the grantee by a telephone company whose facilities are constructed, operated, and maintained pursuant to its telephone franchise and said grantee makes no use of the streets independent of such telephone company furnished facilities, said grantee shall still be required to comply with all of the provisions herein. Section 15. Conditions of Street Occupancy. (a) Notice of Proposed Construction. A grantee of a franchise hereunder shall first obtain the approval of the Director of Public Works -10- before any construction is commenced on any of the streets, alleys, public grounds or places of the City. A grantee shall give the City reasonable written notice of proposed construction so as to coordinate all work between the City and the grantee. In the event the Director of Public Works does not approve a request made by a grantee, the grantee may appeal through a written statement submitted to the City Manager within thirty (30) days from the date of the Director's failure to approve. (b) Application. Application for approval shall contain the following material: (1) A written statement requesting approval (2) Plans and specifications of the work to be done, including cleanup and landscaping of the project. (c) Permits. A grantee shall not open or disturb the surface of any street, sidewalk, driveway, or public place for any purpose without first having obtained a permit to do so from the Director of Public Works, for which permit the City may impose a reasonable fee to be paid by the grantee. The wires, conduits, cables and other property placed in the streets and public places pursuant to such permit shall be located in the streets or portions of the streets and public places as shall be designated by the Director of Public Works. A grantee shall, upon completion of any work requiring the opening of any street or public place, restore the same, including the paving and its foundations, to as good condition as formerly, and in a manner and quality approved by the Director of Public Works, and shall exercise reasonable care to maintain the same thereafter in good condition. Said work shall be performed with due diligence, and if a grantee shall fail to perform and complete the work within a reasonable time, to remove all dirt and rubbish and to put the street or public place in good condition, the City shall have the right to put the street or public place in good :ondition at the expense of the grantee; and the grantee shall upon demand, pay to the City the cost of such work done for or performed by the City, together with ten percent (10%) additional as liquidated damages. (d) Relocation of Facilities. Whenever the City shall grade, regrade, or change the line of any street or public place or construct or reconstruct any sewer or water system therein and shall, with due regard to seasonable working conditions, order the grantee to relocate or protect its wires, conduits, cables and other property located in said street or public place, the grantee shall relocate or protect its facilities at its own expense. The City shall give the grantee reasonable notice of plans to grade, regrade or change the line of any street or public place or to construct or reconstruct any sewer or water system therein. (e) Protection of Facilities. Nothing contained in this section shall relieve any person, company or corporation from liability -11- arising out of the failure to exercise reasonable 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. (f) Notice of Improvements. The City shall give the grantee reasonable written notice of plans for street improvements where paving or resurfacing of a permanent nature is involved, which notice shall contain the nature and character of the improvements, the streets upon which the improvements are to be made, the extent of the improvements and the time when the City is going to start the ,-ork. The notice shall be given to the grantee a sufficient length of time, considering seasonable working conditions, in advance of the actual commencement of the work to permit the grantee to make any additions, alterations or repairs to its facilities deemed necessary. (g) Facilities Not Hazardous to Public. All wires, conduits, cables and other property and facilities shall be so located, constructed, installed and maintained as not to endanger or unnecessarily interfere with the usual and customary trade, traffic and travel upon the streets and public places of the City. The grantee shall keep and maintain all of its property in good condition, order and repair, so that the same shall not menance or endanger the life or property of any person. The City shall have the right to inspect and examine at any reasonable time and upon reasonable notice the property owned or used, in part or in whole, by the grantee. The grantee shall keep accurate maps and records of all its facilities and furnish copies of such maps and records as requested by the City. (h) Facilities to be Attractive. All wires, cables, amplifiers and other property shall be constructed and installed in an orderly and workmanlike manner. All cables and wires shall be installed parallel with existing telephone and electric wires whenever possible. Multiple cable configurations shall be arranged in parallel and bundled, with due respect for engineering considerations. (i) Compliance with Codes. All construction, installation, maintenance and operation of any telecommunications network or of any facilities employed in connection therewith shall be in compliance with the provisions of the National Electrical Safety Code as prepared by the National Bureau of Standards, the National Electrical Code of the National Board of Fire Underwriters, the Bell Telephone System's Code of Pole Line Construction, any standards issued by the Federal Communications Commission or other federal or state regulatory agencies in relation thereto, and local zoning regulations. Every Broadband Telecommunications Network installed, constructed, maintained or operated in the City of St. Louis Park shall be so designed, constructed, installed, maintained and operated as not to endanger or interfere with the safety of persons or property in The City of St. Louis Park. Section 16. Future Conditions of Use. (a) The grantee of a franchise hereunder shall not place poles or other fixtures where the same will interfere with any gas, electric, or telephone fixtures, water hydrant or main and all such poles or other -12- • fixtures placed in any street shall be placed in the right of way between the roadway and the property as directed by the Director of Public Works or his authorized representative. (b) The grantee shall, on the request of any person holding a building moving permit, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and the grantee shall have the authority to require such payment in advance. The grantee shall be given not less than five (5) days advance notice to arrange for such temporary wire changes. (c) The grantee shall have the authority to trim trees upon and over hanging streets, alleys, sidewalks, and public places of the City so as to prevent the branches of such trees from coming in contact with the wires and cables of the company, all trimming to be done under the supervision and direction of the City and at the expense of the grantee. (d) All installations shall be underground in those areas of the City where either or both public utilities providing telephone or electric service are underground at the time of installation. In areas where both telephone and electric utility facilities are above ground at the time of installation, the grantee may install its service above ground with the understanding that at such time as those facilities are required to be placed underground by the City, the grantee shall itgy e -_J place its services underground without additional cost to the residents of the City other than as may be granted under the provisions of Section 13, subsection "E". Section 17. Changes Required by Public Improvements. A grantee of a franchise hereunder shall, at its expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from the street or other public place, any property of the grantee when required by the Director of Public Works by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines, and tracts or any other type of structures or improvements by public agencies. Section 13. Inspection of Property and Records. At all reasonable times, a grantee of a franchise hereunder shall permit any duly authorized representative of the City to examine all property of the grantee together with any appurtenant property of the grantee situated within or without the City, and to examine and transcribe any and all maps and other records kept or maintained by the grantee or under its control which deal with the operations, affairs, transactions or property of the grantee with respect to its franchise. If any such maps or records are not kept in the City, or upon reasonable request made available in the City, and if the Council shall determine that an examination thereof is necessary or appropriate, then all travel and maintenance expense necessarily incurred in making such examination shall be paid by the grantee. -13- (b) Reports Required. The grantee shall prepare and furnish to the Director of Public Works and the Finance Director at the time and in the form prescribed by either of said officers, such reports with respect to its operations, affairs, transactions or property, as may be reasonably necessary or appropriate to the performance of any of the rights, functions or duties of the City or any of its officers in connection with the franchise. (c) Office and Records in City. The grantee shall at all times make and keep at an office maintained by the grantee in the City of St. Louis Park full and complete plans and records showing the exact location of all Broadband Telecommunication Network equipment installed or in use in streets and other public places in the City. (d) Facilities Maps to City. The grantee shall provide to the City of St. Louis Park a current map or set of maps drawn to scale, showing all Broadband Telecommunications Network equipment installed and in place in streets and other public places of the City. Section 19. System Installation Schedule. (a) Permit Application. Within thirty (30) days after acceptance of any franchise, a grantee of a franchise hereunder shall make application to obtain all necessary permits and authorizations which are required in the conduct of its business, including, but not limited to, any utility joint use attachment agreements, microwave carrier licenses, and any other permits, licenses, and authorizations to be granted by duly constituted regulatory agencies having jurisdiction over the operation of the Broadband Telecommunications Network or their associated microwave transmission facilities. (b) Construction. Within ninety (90) days after obtaining all necessary permits, licenses and authorizations, grantee shall commence construction and installation of the Broadband Telecommunications Network. (c) Provision of Service to Subscribers. Within one hundred eighty (180) days after the commencement of construction and installation of the system, grantee shall proceed to render service to subscribers, and the completion of the construction and installation shall be pursued with reasonable diligence thereafter. (d) Completion Requirements. Failure on the part of the grantee to commence and diligently pursue each of the foregoing requirements and to complete each of the matters set forth herein, shall be grounds for termination of such franchise, under and pursuant to the terms of Section 36 hereof; provided, however, that the Council in its discretion may extend the time for the commencement and completion of construction and installation for additional periods in the event the grantee acting in good faith, experiences delays by reason of circumstances beyond their control. Section 20. Extent of Service. (a) The services provided by a grantee of a franchise hereunder =14= shall be made available by it to all areas as designated by the City in the franchise within the corporate limits of the City, within two ,(2) years after commencement of construction. Section 21. System Extension to New Subscribers. (a) Whenever the grantee of a franchise hereunder shall receive requests for service from at least five subscribers located within the grantee's franchised area and who are not and have not been part of any other group of subscribers requesting and receiving an extension of service and who are located within 650 feet of the distribution trunk line for the grantee's Broadband Telecommunication Network, the grantee shall extend such system to such subscribers at no additional cost to the subscriber for the network extension other than the usual connection fees charged to all subscribers. The 660 feet shall be measured in extension length of the grantee's distribution and/or trunk line cable required to provide service and shall be measured from the point at which such extension can be connected to existing trunk lines to the point at which drop lines would run to the subscriber's home or premises. (b) Service Extension Required. In addition, the City Manager may upon complaint from any potential subscriber residing in the grantee's franchised area, order the extension of the network to such subscriber after opportunity for hearing and notice to the grantee. In such cases, the City Manager in his discretion, may order such extension to any subscriber only upon reasonable contribution from the subscriber to the cost of said extension. Such reasonable contribution shall be related to grantee's actual cost of said extension. Section 22. Operational Standards. The Broadband Telecommunication Network shall be installed and maintained in accordance with the rules and regulations as are incorporated herein or as may be promulgated by the City. (a) Minimum Requirements: (1) That the network is designed and rated for 24 hour a day continuous operation. (2) That the network will and does produce a picture upon any subscriber's television screen in black and white or color (provided the subscriber's television set is capable of producing a colored picture) that is undistorted and reasonably free from ghost images, without visual material degradation in quality within the limitations imposed by the technical state of the art, and providing the subscriber's television receiver is in good repair and properly adjusted. (3) That the network transmit or distribute signals of adequate strength to produce good pictures with good sound to all subscribers having television receivers in good repair without causing objectionable cross -modulation in the cables or interferring with -15- other electrical or electronic networks or with the reception of other television or radio receivers in the area not connected to the network. (b) Interruption of Service. Whenever it is necessary to shut off or interrupt service for the purpose of making repairs, adjustments or installations, the grantee shall do so during periods of minimum use of the network by subscribers. Unless such interruption is unforeseen and immediately necessary, it shall give reasonable notice thereof to the subscribers effected. All costs incurred in effecting such repairs, adjustments or installations shall be borne by the grantee unless other- wise provided for herein. (c) Emergency Power. The grantee shall when in the opinion of the City it becomes economically and technically feasible provide emergency and automatic standby power for the studio, and headend, and trunk lines that will enable emergency use of the facilities as provided in Section 27. (d) Business Office. The grantee shall maintain an office in the City at a location convenient to the public which shall be open during all usual business hours, have a listed telephone, and be so operated that complaints and request for repairs or adjustments may be received at any time. (e) Upgrading of Standards. The grantee shall endeavor, as subscribers' demands dictate, to upgrade its facilities, equipment, and service so that its network is as advanced as the current state of technology which field -proven equipment will allow. Failure of the grantee to install additional channel capacity as required by the Federal Communication Commission shall be considered breach of the franchise agreement. Section 23. Technical Standards. A grantee of a franchise hereunder shall install a Broadband Telecommunication Network in the City of St. Louis Park meeting the following technical standards, subject to modification by any technical standards adopted by the Federal Communications Commission, to the extent that such Federal standards are more stringent than these proposed by the City. (a) Definitions. (1) Cable Television Channel. A frequency band 6MHz in width within which a standard television broadcast signal is delivered by cable to a subscriber terminal. (2) Class I Cable Television Channel. A signaling path provided by a cable television system to relay to subscriber terminals television broadcast programs that are received off -the -air or are obtained by microwave or by direct connection to a television broadcast station. -16- (3) Class II Cable Television Channel. A signaling path provided by a cable television system to deliver to subscriber terminals television signals that are intended for reception by a television broadcast receiver without the use of an auxiliary decoding device and which signals are not involved in a broadcast transmission path. (4) Class III Cable Television Channel. A signaling path provided by a cable television system to deliver to subscriber terminals signals that are intended for reception by equipment other than a television broadcast receiver or by a television broadcast receiver only when used with auxiliary decoding equipment. (5) Class IV Cable Television Channel. A signaling path provided by a cable television system to transmit signals of any type from a subscriber terminal to another point in the cable television system. (6) Discrete Cable Television Channel. A signaling path provided by a cable television system to transmit signals of any type to specified subscriber terminals within the cable television system. (7) Channel Frequency Response. Within a cable television channel, the relationship as measured at a subscriber terminal between amplitude and frequency of a constant -amplitude input signal. (3) Network Noise. That combination of undesired and fluctuating disturbances within a cable television channel, exclusive of undesired signals of discrete frequency which degrade the reproduction of the desired signal and which are due to modulation processes, thermal effects and other noise producing effects, not including hum. Network noise is specified in terms of its rms voltage or its mean power level as measured in a 4 NHz bandwidth between 1.25 and 5.25 NHz above the lower channel boundary of a Broadband Telecommunication Network. (9) Subscriber Terminal. The Broadband Telecommunication Network 75 ohm cable terminal to which the subscriber's equipment is connected. Separate terminals may be provided for delivery of cable television signals, FPI broadcast, or other signals of differing classifications. (10) Terminal Isolation. At any subscriber terminal, the attenuation between that terminal and any other subscriber terminal in that network. -17- • (11) Visual Signal Level. The rms voltage produced by the visual signal during the transmission of synchronizing pulses. (12) BTN Network Channel Capacity. The highest total number of cable television channels on which television signals from separate sources may be delivered downstream simultaneously to every subscriber in the network. The network may have additional channel capacity for specialized or discrete purposes, but the technical performance specified shall not be materially degraded thereby. (b) Performance Tests and Certification. (1) The grantee of the Broadband Telecommunications Network shall be responsible for insuring that the network is designed, installed, and operated in a manner which fully complies with the technical provisions of this ordinance. The grantee shall be prepared to show, at any time, upon reasonable request by an authorized representative of the City, that the network does, in fact, comply with these criteria. (2) The grantee shall file with the City a statement of the network channel capacity, listing the cable television channels which that network delivers to its CATV subscribers, and the television station or stations whose signals are delivered on each channel of the network under normal operating conditions. When television stations are to be deleted or added, the City and all subscribers shall be notified in writing thirty (30) days prior to the date of such deletion or addition. (3) The grantee shall conduct, as set forth by the FCC in their 3rd Report and Order, complete performance tests of that network at least once each calendar year (at intervals not to exceed 14 months) and shall `ile with the City a certificate detailing the test standards and the results of such tests. The performance tests will be directed at determining the extent to which the network complies with the technical standards set forth in this section of this ordinance, and at the discretion of the City shall be conducted in the presence of a technical representative appointed by the City. The tests shall be made on each cable television channel in the network, and shall include measurements made at at least two trunk extremities and three taps selected at random at least one of which is representative of a terminal most distant from -13- • the network input in terms of cable distance. A statement of the qualifications of the persotz performing the test and a description of instruments and procedures used shall be attached to the test results filed with the City. (4) After reviewing the certificates of compliance required in paragraph (3) the City may require that certain additional measurements be made, or that clarifying explanation be supplied, as necessary to correct defective certificates. (c) Technical Standards. The following requirements apply to the Broadband Telecommunications Network performance for Class I, Class II and Discrete Video Cable Television Channels as measured at any equivalent subscriber terminal with a matched termination and to each of the cable television channels in which signals picked off -air are delivered to such terminals. Such measurements shall not include the receiver converter if such is required at the customer's receiver for any of the channels of required carriage. (1) The frequency boundaries of cable television channels delivered to subscriber terminals shall conform to those set forth in FCC Rules, Section 73.603 (a). All local channels shall be carried on the network synchronously, i.e., on channel to the extent it is technically feasible. (2) The frequency of the visual carriers shall be maintained 1.25 MHz 25 KHz above the lower boundary of the cable television channel, up to the receiving terminals, exclusive of any receiver attachments, such as channel converters, except for the local VHF channels which shall be carried synchronously to the extent it is technically feasible. (3) The frequency of the aural carrier shall be 4.5 MHz ± 1 KHz above the frequency of the visual carrier, except where monochrome signal origination occurs within the system, under which conditions, the tolerance shall be - 5 KHz. All color local origination,channels shall have aural -visual separation — 1 KHz from 4.5 MHz. (4) The visual signal level at the picture carrier frequency on each channel shall not be less than 1000 UV (microvolts) across a 75 ohs terminating impedance and shall be maintained within the following limits over the entire ambient temperature range of -40° F to +120° F and with variations in supply voltages from 105 to 130 volts. a. 12 decibels of its minimum value, and b. 6 decibels of the visual signal level on either adjacent cable television channel, and c. 10 decibels of the visual signal level on any other cable television channel, and (5) The rms voltage of the aural signal shall be maintained between 13 and 17 decibels below the associated visual signal level. (6) The peak -to -peat: variation in visual signal level caused by undesired low frequency disturbances (hum or repetitive transients) generated within the system or by inadequate low frequency response shall not exceed 37 of the visual signal level. (7) The ratio of visual signal level to network noise and of visual signal level to any undesired co -channel television signal operating on a proper offset assignment shall be not less than 42 decibels. This requirement is applicable only to: a. each signal which is carried by a cable television system serving subscribers within the Grade B contour for that signal, or b. each signal which is first picked up within its predicted Grade B contour, c. any local origination channel. (3) The ratio of visual signal level to the rms amplitude of any coherent disturbances, such as inter -modulation products, or discrete -frequency interferring signals, not operating on proper offset assignments shall not be less than 46 decibels. (9) The terminal isolation provided each subscriber shall not be less than 30 decibels, except that the isolation between separate television and FM broad- cast terminals for the same subscriber shall not be less than 15 decibels. (10) Radiation from the Broadband Telecommunications Network shall be limited as follows: -20- s Radiation Distance Frequencies Limit (uV/m) (feet) Up to and including 54 MHz 15 100 Over 54 up to and including 216 MHz 10 10 Over 216 MHz 15 100 (11) All echos originating within the network shall meet the nonvisibility criteria developed by P. Mertz of the Bell Telephone Company, i.e., shall not be greater than -36 dB for echos dispersed more than 2 microseconds. For shorter term dispersed echos, the network (including head -end terminal) shall follow the "Mertz Curve", merging to a "K" pulse deformation not exceeding 47 of the total system. This latter measurement shall not include the "K" response of the test modulator and demodulator (if used), i.e., shall be "network" "K" response. 2 T pulse or equivalent measurement techniques shall be used for these measurements. All unused subscriber tap ports may be terminated during network measurement. (12) The total net chrominance/luminance delay accumulated by the system and head -end equipment shall not exceed +130 nanoseconds, as measured with 20 T pulse deformation tests. This measurement is to be made with external traps and band pass filters removed. This measurement is to be repeated with band pass filters and traps added, and new data taken. No compliance criteria are established for the latter, merely that the data be taken. (there measurements involve a channel with baseband video signal source, the measurements of the network shall be made with a demodulator followinc the equivalent reciprocal FCC transmission standards. 20 T pulse tests will be used to determine compliance with this section, or equivalent techniques with envelope delay measurement equipment. (13) Network frequency response as measured at qny subscriber terminal shall not vary by more than 1 2 db over the 6 MHz bandwidth of any cable television channel or corresponding portion of the FM and mid or upper band spectrums if utilized. (14) Network cross -modulation as measured at all network frequencies from the network input to any subscriber terminal shall be at least 52 db below the normal transmission level and at least 57 db -21- below the normal transmission level as measured at any point of the network trunk (network cross -modulation specifications based on NCTA standard). (15) Subscriber installations shall conform where applicable to Articles 000 and 810 of the National Electric Code, current edition. (16) Notwithstanding the fact that the network may be in compliance with all the standards set forth herein, the City may require a higher level of performance in any area to resolve signal quality or interference problems. (d) Alternate approach. If the grantee desires to distribute signals by using multiple cable techniques or specialized receiving devices, which, because of the basic design, cannot comply with one or more of the technical standards set forth in paragraph (c) (11) of this section, he may be permitted to operate with such equipment provided that an adequate showing is made which establishes that the subscribers are provided an equivalent quality of service. The City expects full technical proof of equivalent performance before it can judge whether such an alternate approach would be acceptable. (e) Measurements. (1) Measurements made to demonstrate conformity with the performance requirements set forth in these technical standards shall be made under conditions which reflect network performance during normal operations, including the effect of any present or future microwave relay operated in the Community Antenna Relay Service (CARS) intervening between pickup antenna and the Broadband Telecommunication Network and including the effects of any microwave local distribution service which may be a part of the network. Special signals inserted in a cable television channel for measurement purposes should be operated at levels approximating those used for normal operation. Pilot tones, auxiliary signals, and non -television signals normally carried on the network should be operated at normal levels. The following test procedures are included as a guide. There are several recognized and technically acceptable methods for performing many of the measurements, the technique and equipment used in each case if different than those set forth herein shall be fully described in the annual certification to the City. -22- • (2) When it may be necessary to remove the television signal normally carried on a cable television channel in order to facilitate a performance measurement, it will be permissible to disconnect the antenna which serves the channel under measurement and to substitute therefor a matching resistance termination. Other inputs should be connected to maintain the equivalent to, or special test signals on other channels to ascertain network performance. (3) As may be necessary to ensure satisfactory service to a subscriber, the City may require additional tests to demonstrate network performance or may specify the use of different test procedures. (4) Network frequency response measurements may be made with a calibrated signal generator, variable attenuator and a frequency selective voltmeter. All TV signals except for ALC, AGC, or ASC pilot carriers may be disconnected during this test. With all automatic gain control amplifiers in the section under test set to their normal operating mode, the signal generator shall be connected to the input to the Telecommunications Network and set for a cw signal at the desired frequency and level normally present at that frequency and location. With the meter and variable attenuator connected in series to the subscriber terminal under tests, the signal level shall be measured and recorded. Measurements shall then be made in a similar manner for all frequencies at the levels normally carried on the network. (5) Network noise may be measured using a frequency - selective volt -meter (field strength meter which has been suitably calibrated to indicate rms noise or average power level and which has a known bandwidth). With the network operating at normal levels and with a properly matched resistive termination substituted for the antenna, noise power indications at the subscriber terminal are taken in successive increments of frequency equal to the bandwidth of the frequency - selective volt -meter, summing the power indications to obtain the total noise power present over a 4MHz band centered with the cable television channel (or equivalent noise summation technique). If an amplifier is inserted between the frequency -selective volt -meter and the subscriber terminal in order to facilitate this measurement, it should be a bandwidth of at least 4 MHz and appropriate corrections must be made to account for its gain. -23- • (6) The amplitude of discrete frequency interferring signals within a cable television channel may be determined with either a spectrum analyzer or with a frequency -selective volt -meter (field strength meter), or other suitable instruments, which instruments have been calibrated for adequate accuracy. (7) The terminal isolation between any two terminals in the network may be measured by applying a signal of known amplitude to one and measuring the amplitude of that signal at the other terminal. The frequency of the signal should be close to the mid -frequency of the channel being tested. This test is to be performed with 150 foot drop lead (equivalent network if desired) connected to each output spigot of the customer tap port. (8) Radiation measurements may be made utilizing a frequency selective voltmeter calibrated for adequate accuracy and a tuneable half -wave dipole antenna, horizontal polarized. The distance and height above ground of the measurements shall be in accordance with the Rules and Regulations of the Federal Communications Commission, Volume 11, Part 15 Subpart D, for cable television systems. (9) The network cross -modulation measurement may be performed using a calibrated signal generator having controllable modulation, a detector and an oscilloscope. After connecting the signal generator to the lowest standard VHF frequency input terminal of the Head End signal combiner, its output shall be set for an unmodulated signal identical in frequency and level to that of the signal normally present at that point. The signals of all other channels normally carried on the network shall be fed into the combiner at their normal levels. After connecting the field strength meter to the subscriber terminus, it shall be tuned to the video carrier frequency of the channel under tests and with the oscilloscope, the modulation level may be read directly from the scope. (10) The network hum modulation may be measured at each video carrier frequency on the network using a calibrated signal generator, a detector and an oscilloscope. The signal generator shall be connected, the level and frequency adjusted and all other channels set at their normal levels. With the detector and oscilloscopes connected to the subscriber terminus, the average level of the detected signal and the peak -to -peak AC hum will be indicated on the oscilloscope. The percent of hum modulation is defined as the ratio expressed in percent of the average level of the detected signal to one half the indicated peak -to -peak AC hum. (11) All actual recorded values observed as a result of the various tests shall be recorded and submitted to the City in accordance with the provisions of this ordinance. (g) Reverse Signal Capability (Duplex Network). The grantee shall provide in original construction a duplex network capable of reverse direction signals from each and all drops. Such carriage capability shall be at least in accordance with the requirements of the Federal Communications Commission's 3rd Report and Order. (h) Maintenance. The grantee shall retain a sufficient number of technically qualified personnel to maintain the network at the quality specified. Sufficient personnel shall also be either on duty or on call during all hours of each day to maintain service at all times. Section 24. Services to be Provided by the Grantee. (a) Public Access Channel. (1) The grantee of a franchise hereunder shall provide, as required by the FCC, at inauguration of cable system subscriber service, one fully operational Class II Cable Channel as a non-commercial public access channel available to the public on a first-come, non-discriminatory basis. (2) Production facilities shall be made available without cost for live studio presentations of five (5) minutes or less. If such presentation exceeds five (5) minutes, fees for use of the public access channel shall be limited to production costs attributed solely to personnel and equipment utilized in live studio presentations. (3) The Public Access Channel shall be made available on a first-come, non-discriminatory basis, without fee for presentations of five (5) minutes or less, to the public for cablecasting of programs prepared on video tape or film for presentation. The grantee shall provide, at no cost to public access users for presentations of five (5) minutes or less, equipment and personnel for cablecasting one-half (1/2) inch and one (1) inch color and black and white video tape, sixteen millimeter (16mm) sound movie film, and eight millimeter (3mm),including Super 3mm, movie film. (4) The grantee shall develop procedures, subject to Council approval, for providing notification to all -25- subscribers of the schedule of presentations known in advance to be available on the Public Access Channel. (b) Educational and Governmental Use Channels. The grantee shall provide, as required by the FCC, at inauguration of cable system subscriber service, two fully operational Class II Cable Channels, without charge, for a period of five years, said time commencing at completion of the cable system basic trunk line, for educational and governmental use. One channel shall be designated for use by the St. Louis Park Independent School District #203 and one channel shall be designated for use by the City of St. Louis Pari: and shall be made available for access by governmental agencies. (c) Continued Availability of Educational and Governmental Use Channels. The Governmental Use Channel shall continue to be made available without charge to the extent permitted by the FCC upon demand of using agencies at the completion of the first five (5) years and upon provision of evidence to the 0rantee and CATV Advisory Committee that said channel was in respective use for an accumulated average of 30% of the weekdays for 30% of the time during any three-hour period for the previous twelve (12) months. The Educational Use Channel shall continue to be made available without charge to the extent permitted by the FCC upon demand of using agencies at the completion of the first five (5) years and upon evidence to the grantee and CATV Advisory Committee that said channel was in respective use for an accumulated average of eighty percent (80%) of the weekdays for eighty percent (30%0) of the time during any three (3) hour period for the previous nine (9) month school term. Such determination shall occur annually thereafter. If such use cannot be demonstrated, the using agency shall be required to provide channel use payment to the grantee consistent with the provisions of Section 24 (3) (Channel Use Fees). Channel use fee for using agencies shall terminate to the extent permitted by the FCC whenever evidence is presented demonstrating use of the channel in excess of 80% of the weekdays for 80% of the time during any three-hour period for the previous four weeks. (d) Channel Capacity Expansion. The grantee shall provide fully operational Class II Cable channels, as required by the FCC, for use in fulfilling programming requests within the cable system. Such channels shall be made available within six (6) months to parties presenting written request to the grantee and the CATV Advisory Committee. Such written request shall specify the number of channels requested or the percentage and designation of time requested on channels to be shared with other uses. In addition, the request shall specify the number and time of programming hours proposed per channel requested. A request for channel allocation shall not be considered a (compulsory) demand unless at least 00/ of the weekdays for 8070 of the time during any three-hour period for four weeks will be utilized for each channel, or portion thereof, requested by the requesting party. (e) Channel Use Fees. The grantee may establish a channel -26 - • • use (or lease) fee for the use of Class II, Class III or Class IV Cable channels provided to requesting parties except as provided in Section 25(a). (f) Lease Termination. The lease agreement shall be terminable by the lessee or lessor by provision of thirty (30) days' notice of either party's intention to terminate. The grantee may not terminate a leased channel agreement with public or non-profit agencies without prior approval of the City Council. Such request for termination shall be based on failure of the lessee to provide programming consistent with its letter of request or for failure to pay authorized fees and shall not be based upon inability of the grantee to provide additional channels upon demand of other parties except as provided in Section 9. The provisions of this section shall not apply to users of discrete cable system services including public or non-profit agencies. (g) Discrete Cable Television Service. (1) As the total number of discrete duplex educational channels to be available is of a great deal of interest to the City, applicants for a franchise hereunder are invited to disclose the number of such channels that they would be willing to provide and to support such provisions before the Federal Communications Commission. All such discrete channels shall be made available to all school buildings in the City and shall be duplex in nature with the return path terminating at the network headend. (2) The grantee may establish a discrete cable television channel use fee for the use of discrete channels provided to the school systems. This fee shall not exceed the additional operational cost including a fair return on its investment incurred by the grantee by making the discrete channel(s) available and shall be subject to approval by the City Council. (h) Local Origination Programming. The grantee shall provide in addition to Education, Government, and Public Access channels, subject to the approval of the FCC, at least one channel fully devoted to local origination programming. Such local origination programming is construed to include but not limited to coverage and reporting of municipal, school, sports, public and service organizations, religious, and individual activities and events occurring within the City or school system or involving agencies or individuals within the City or school system. (i) Studio Facilities. (1) The grantee shall, subject to the approval of the FCC, provide a full color capable studio within St. Louis Park. This studio shall be constructed to enable preparation and playback of simultaneous live and/or taped or filmed programming in separate facilities • w within the studio and that at least one studio shall provide for audience participation. (2) An applicant for a franchise hereunder shall submit its plans for its business office and color studio to be constructed within the City. This plan shall include such items as studio size, accessibility to the public, type of facilities, hours and time it will be operated, and estimated construction time. Said plans shall be subject to the approval of the City in the event a franchise is granted hereunder. Section 25. Inter -Connection. (a) Inter -connection Required. Subject to obtaining interconnection approval(s) from adjoining Networks Franchisers and Operators. The grantee of a franchise hereunder shall interconnect its Broadband Telecommunications Network with all other Broadband Telecommunications Networks serving those municipalities that adjoin the City. In addition, the grantee shall make diligent effort to interconnect its network with other networks in the metropolitan Minneapolis -St. Paul and Seven County metropolitan Twin City area. (b) Procedure. In addition, subject to FCC approval, the grantee shall provide channels upon demand of public agencies seeking establishment of such interconnected channels. The requesting agency shall specify the uses proposed, the frequency bandwidth, with letter of numeric designation, and hours of operation of the channels requested. The request shall be provided in writing to the grantee and such requested channels shall be made available within sixty (60) days of its reception. Requests and usage of such interconnected channels shall be subject to use requirements established in Section 24. Section 26. Additional Services. The grantee of a franchise hereunder shall submit within thirty (30) days after commencement of service and annually thereafter, a plan subject to the approval of the City, stating the proposed number of channels which will be devoted to network affiliated television stations, non -network independent television stations, including educational television stations, and channels to be devoted to locally originating programs. Such plans shall also contain the following: (1) An estimate of the total number of broadcast hours per week per channel which the grantee proposed to devote to local programming. (2) The types of local programs it proposes to originate. (3) A proviso that the grantee shall submit to the City each year a proposed programming schedule for locally originated channel(s). (4) A description of proposed advertising program. -23- • • • (5) A statement of the use and availability of channels and facilities by local political candidates. (6) Plan for providing a duplex system and FM multiplex stereo and music channels. Section 27. Emergency Use of the Facilities. In the event of an emergency or disaster, the grantee of a franchise hereunder shall upon request of the City Manager or his designee make available its facilities to the City for emergency use during the period of such emergency or disaster and shall provide such personnel as necessary to properly operate under the circumstances. The grantee shall incorporate into its facilities the capability for an emergency override audio alert whereby the City in times of crises may be able to introduce a bulletin on all channels simultaneously. Section 23. Miscellaneous Provisions. (a) Grant of Franchise to Qualified Applicant. Upon consideration of an application for a cable television franchise the City Council may grant such application to such applicant as may appear from said application to be in its opinion best qualified to render proper and efficient service to television viewers and subscribers in the City. (b) Filing Requirements. When not otherwise prescribed herein, all matters herein required to be filed with the City shall be filed with the City Clerk. (c) Maintenance Facility. The grantee shall operate a maintenance facility within the City limits of the City of St. Louis Park so that BTN maintenance service shall be promptly available to subscribers. (d) Extension of City Limits. Upon the annexation of any territory to the City (other than through a governmental consolidation process, as to which the City makes no agreement), the right and franchise hereby granted shall extend to the territory so annexed; and all facilities owned, maintained or operated by grantee located within, under, or over streets of the territory so annexed shall thereafter be subject to all terms hereof. (e) Service Continuation, Notification of Subscribers. Before providing cable service to any subscriber, the grantee shall notify said subscriber in writing that the grantee is making use of the public right-of-way in St. Louis Park to provide Cable Television services; that use of such rights of way is in no way guaranteed; that in the event continued use of such rights of way are denied for any reasons, the grantee will make every reasonable effort to provide service over alternate routes and that the City of St. Louis Park, its officers and its employees are not responsible in any way for any interruptions or discontinuance of service. -29- (f) Service Interruption. The grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum use of the network. (g) removal of Roof Top Antennae. Upon request of the property owner, the grantee may, if it so elects, remove and dispose of the roof top antenna at the time of the service installation for which the grantee may charge a fee not to exceed the prevailing installation charge. (h) No Liability for Libelous Statements. The City disclaims all liability arising out of the utilization of the public access channel and the grantee agrees to indemnify and hold the City harmless for any damage that may result as a result of such claim. Section 29. Citizens Cable Advisory Board. There is hereby established to serve as an advisory committee to the City, a board to be known as the Citizens' Cable Advisory Board. (a) Composition. The Board shall be composed of citizen volunteers as appointed by the City Council with their disciplines and numbers being determined by the City. (b) Purpose. The Board shall be responsible for stimulating and promoting public interest and participation in the educational and public access channels and shall be further responsible for recommending procedures for utilization of said channels. In addition the Board shall advise and make recommendations as requested by the City on specific matters affecting the Broadband Telecommunications Network within the City including its future interconnections with surrounding communities. (c) Budgeted Option. The Board may formulate a budget and elect officers from within its membership and adopt such bylaws as it deems necessary in order to perform its functions. Such budget, rules and regulations and bylaws shall be submitted to the City Council for approval before they shall be effective. Section 30. Preferential or Discriminatory Practices Prohibited. The grantee of a franchise hereunder shall not refuse cable television service to any person or organization who requests such service for a lawful purpose, nor shall the company refuse any person or organization the right to cablecast pursuant to provisions of this ordinance. The company 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 prejudice or disadvantage. Section 31. Use of Data From Subscriber. The grantee of a franchise hereunder shall not, without Council approval initiate or use any form of procedure or device for procuring information or data from cable system subscribers' terminal by use of the cable system. Further, it shall be unlawful for any grantee of a franchise hereunder without the expressed consent of a subscriber, either in writing, orally or by electromechanical means to activate and/or utilize the return path of -30- • • a "Duplex Network" in any manner from said subscribers premises. Section 32. Rights Reserved to the City. (a) No Impairment of City's Rights. Nothing herein shall be deemed or construed to impair or affect, in any way, to any extent, the right of the City to acquire the property of the grantee of a franchise hereunder through the exercise of the right of eminent domain, at a fair and just value, which shall not include any amount for the franchise itself or for any of the rights or privileges granted, and nothing herein contained shall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the City's right of eminent domain. (b) Grantee Agrees to City's Rights. There is hereby reserved to the City every right and power which is required to be herein reserved or provided by any ordinance of the City, and the grantee by its acceptance of any franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exercise of such rights or power heretofore or hereafter enacted or established. (c) City's Right of Intervention. The City shall have the right to intervene and the grantee specifically agrees by his acceptance of a franchise hereunder not to oppose such intervention by the City in any suit or proceeding to which the grantee is a party. (d) Powers of the City. Neither the granting of any franchise nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City. (e) Resolution of Disputes and Appeal Procedures. The Council may do all things which are necessary and convenient in the exercise of its jurisdiction under this ordinance and may determine any question of fact which may arise during the existence of any franchise granted hereunder. The City Manager is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of any grantee under this ordinance, either on behalf of the City, or the grantee, in the best interest of the public. Either the grantee or any member of the public who may be dissatisfied with the decision of the City Manager may appeal the matter to the Council for hearing and final determination. The Council may accept, reject or modify the decision of the City Manager, and the Council may adjust, settle or compromise any controversy arising from the operations of any grantee or from any provision of this ordinance. The decision of the Council shall be final. (f) Regulatory Board. There is hereby established to assist the City Manager in adjusting, settling or resolving any controversy of any nature between the grantee of a franchise hereunder and any person, association, company or corporation. It shall be comprised of three individuals of which, at least, two are not associated with a municipal government function. The Board membership, its chairman, and its duties shall be designated by the City Council, and shall act only upon the request of the City Council or the City Manager. -31- Section 33. Violations. (a) Franchise Required for CATV System. From and after the effective date of the ordinance, it shall be unlawful for any person to establish, operate or to carry on the business of distributing to any person in the City any television signals or radio signals by means of a Broadband Telecommunications Network unless a franchise therefor has first been obtained pursuant to the provisions of this ordinance, and unless such franchise is in full force and effect. (b) Franchise Required for Use of Right of Way. From and after the effective date of this ordinance, it shall be unlawful for any person to construct, install or maintain within any public street in the City, or within any other public property of the City, or within any privately owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision map approved by the city, any equipment or facilities for distributing any television signals or radio signals or other intelligencies either analog or digital over a Broadband Telecommunications Network unless a franchise authorizing such use of such street or property or areas has first been obtained pursuant to the provisions of this ordinance, and unless such franchise is in full force and effect. (c) Unauthorized Connections Prohibited. It shall be unlawful for any person, firm or corporation to make any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised Broadband Telecommunications Network within this City for the purpose of taking or receiving television signals, radio signals, pictures, programs, or sound. (d) Unauthorized Connections without Payment Prohibited. It shall be unlawful for any person, firm or corporation to make any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, with any part of a franchised Broadband Telecommunications Network within this City for the purpose of enabling himself or others to receive any television signal, radio signal, picture, program, or sound, without payment to the owner of said network. (e) Tampering with BTN Equipment Prohibited. It shall be unlawful for any person, without the consent of the owner, to willfully tamper with, remove or injure any cables, wires or equipment used for distribution of television signals, radio signals or other intelligencies, either analog or digital. Section 34. Conditions of Grantee Acceptance. (a) Grantee to have no Recourse. Except as expressly provided in this franchise, the grantee shall have no recourse whatsoever against the City for any loss, cost or expense or damage arising out of the provisions or requirements of this franchise or because of the enforcement thereof by the City nor for the failure of the City to have the authority to grant all or any part of this franchise. -32- • (b) Acceptance of Power and Authority of City. The grantee expressly acknowledges that upon accepting this franchise, it did so relying upon its own investigation and understanding of the power and authority of the City to grant this franchise. (c) Inducements not Offered. The grantee by acceptance of this franchise acknowledges that it has not been induced to enter into this franchise by any understanding or promise or other statement whether verbal or written by or on behalf of the City concerning any term or condition of this franchise not expressed herein. (d) Grantee Accepts Terms of Franchise. The grantee further acknowledges by acceptance of this franchise that it has carefully read the terms and conditions hereof and is willing to and does accept all of the risks of the meaning of such terms and conditions. Section 35. Failure of the City to Enforce Franchise Provisions. The grantee shall not be excused from complying with any of the terms and conditions of this franchise by any failure of the City upon any one or more occasions to insist upon or to seek compliance with any such terms or conditions. Section 36. Expiration and Revocation. (a) Expiration. Upon the expiration of any franchise granted hereunder at the end of its fifteen (15) year term, the City shall review the performance of the grantee. Upon finding by the City Council that the grantee has fulfilled all conditions and requirements imposed by this ordinance and has utilized the franchise in the best interest of die City, the grantee shall have the right, subject to a renegotiation of terms and conditions, to obtain from the City a renewal of the franchise for an additional five (5) year period. If the Council finds that the grantee has not fulfilled all conditions and requirements imposed by this ordinance or has not utilized the franchise in the best interests of the City, this franchise shall not be renewed and the provisions of Section 36 (b) shall apply. (b) Procedure upon Expiration or Revocation. When this franchise expires pursuant to Section 36 (a), or, if a franchise granted hereunder is revoked pursuant to Section 33 (b), the grantee shall first offer its Broadband Telecommunications Network for sale to the City at a fair and just market value, which shall not include any amount for the franchise itself or for any of the rights or privileges granted by the City. The City shall have ninety (90) days to exercise this right of first refusal to purchase the network. If the City does not exercise its option to purchase, and the network is not sold to another operator who has obtained a franchise from the City, within a reasonable period of time as determined by the City, after expiration of the franchise term, the grantee shall enter upon the public ways and public places of the City for the purpose of removing therefrom all of its plants, structures and equipment and shall promptly remove all of its facilities and equipment from the premises of all subscribers at a time convenient to both the grantee and the subscriber. • (c) Restoration of Property. In so removing such plants, structures and equipment, the grantee shall refill, at its own expense, any excavation that shall be made by it and shall leave such public ways and places in as good condition as that prevailing prior to the company's removal of its equipment and applicances without affecting, altering or disturbing in any way the electric distribution or telephone cables, wire or attachments on any poles. The Director of Public Works or his appointee shall inspect and approve the condition of such public ways and public places and cables, wire, attachments and poles after removal. In the event of dispute of the Director's opinion, the grantee or any other person may request a public hearing before the Council. Liability insurance and indemnity provided in Section 8 hereof and the security fund provided in Section 7 hereof shall continue in full force and effect during the entire period of removal. Section 37. Applicable Laws. (a) Compliance with Applicable Laws. (1) The grantee shall at all times comply with all laws, ordinances and regulations of the Federal, State and City of St. Louis Park governments or any administrative agencies thereof. (2) If any Federal or State law or regulation shall require or permit the grantee to perform any service or shall prohibit the grantee from performing any service which may be in conflict with the terms of this franchise or any ordinance of this City, then as soon as possible following knowledge thereof, the grantee shall notify the City Manager of the point of conflict believed to exist between such law or regulation and the ordinance of the City or this franchise. Section 38. Rights of Amendment and Revocation Reserved to City. (a) Amendment of Ordinance. (1) The City reserves the right to amend or repeal any section of this ordinance and adopt additional provisions hereto in the following circumstances: a. To adoptsubsequent amendments of applicable FCC Rules as required by FCC Rule 76.31 (a) (6). b. To cause the ordinance to comply with applicable FCC Rules or standards. c. To establish additional standards of operation or performance in the following areas. 1. Class III and Class IV Cable Television channels. -34- 2. Interconnection of the network with networks in other municipalities within the metropolitan area. 3. "Pay TV". d. To modify the franchise fee established by this ordinance in the event that regulation by other levels of government causes the business of the grantee to become a public utility. (2) Procedure Prior to Amendment. Upon the occurrence of any events enumerated in Section 38 (a) (1), or upon submission to the City of a proposed amendment or repeal of a section, the City shall hold a hearing thereon as required by law. (b) Franchise Revocation. (1) The City reserves the right to revoke any franchise granted hereunder in the following circumstances. a. If a petition is filed by or against the grantee under the Bankruptcy Act or any amendments thereto, or any other insolvency or creditors' rights law, state or federal and the grantee shall fail to secure a discharge thereof within ninety (90) days. b. A receiver, trustee or liquidator of the grantee for all or part of its assets is applied for or appointed. c The grantee becomes insolvent or makes an assignment for the benefit of creditors. d. If the grantee should default in the performance of any of its obligations under this ordinance and shall fail to cure the same within ninety (90) days after receipt by the grantee from the City of written notice of said default (provided, however, that the City shall not exercise any rights under this subparagraph so long as the grantee is proceeding diligently to cure such default). e If any court of competent jurisdiction, the FCC, or any state regulatory body by rules, decision, or other action determines that any provision of this ordinance is invalid or unenforceable, said provisions in the opinion of the City being material and essential provisions both to the granting and continuance without which the City would not have granted a franchise. -35- (2) Procedure Prior to Repeal. Upon the occurrence of any of the events enumerated in Section 38 (b) (1), the City Council may, after hearing, find such facts and set a reasonable time in which the grantee must remedy the occurrence. Written notice shall be given the grantee of such determination. Upon the expiration of the time set by the Council and failure to correct such failures, the City Council may take such steps as it deems necessary to repeal this ordinance; provided that before the franchise may be repealed the grantee shall be provided witi an opportunity to be heard before the Council. Section 39. Severability. If any section, subsection, sentence, clause or phrase of this ordinance is determined to be illegal, invalid, or unenforceable by any court of competent jurisdiction, the FCC, or any state regulatory body, by rule, decision or other action, such decision shall not affect the validity of the remaining portions thereof. The invalidity of any such portion of this ordinance shall not abate, reduce or otherwise affect any consideration or other obligation required of the grantee of any franchise hereunder. Section 40. Acceptance. This ordinance, its terms and provisions and any franchise granted hereunder shall be unconditionally accepted by the grantee by written instrument executed and acknowledged by said grantee and filed with the City Clerk of the City within twenty (20) days after granting of a franchise. Such written instrument shall state and express the acceptance of both the ordinance and franchise and their terms, conditions, and provisions, and said grantee shall agree in said instrument to abide by, to observe and perform same, and declare that statements and recitals herein are correct and that it has made and does make the agreements, statements and admissions in the ordinance and franchise recited to have been or to be made. Section 41. Acceptance Fee. The grantee of a franchise hereunder shall pay to the City at the time of granting of the franchise an acceptance fee in the sum of $25,000.00. This fee shall be used by the City to cover its administrative expenses in supervising the franchise applications, preparation of the ordinance, supervision of the construction and operation of the Broadband Telecommunications Network. Section 42. Publication Costs. The grantee of a franchise hereunder shall assume the cost of publication of this ordinance and franchise as required by law. A bill for publication costs shall be presented to the grantee by the City Clerk upon the grantee's filing of acceptance and shall be paid at that time. Section 43. Effective Date. This ordinance will become effective fifteen (15) days after publication. -36- • Section 44. Applications for a Franchise. Applications for a franchise hereunder shall be filed with the City Clerk in accordance with instructions promulgated by the City and shall contain the following information and provisions: (a) The name and business address of the applicant, date of application and signature of applicant or appropriate corporate officer. (b) Payment of any filing fees required hereunder. (c) Bid bond in the amount of $25,000 or cash deposit or certified check in a form acceptable to the city attorney as required hereunder. including including (d) A general description of the applicant's proposed operation a description of the proposed service area. (e) A statement of the television and radio services proposed both off -the -air and locally originated signals. (f) A statement setting forth a description of the television channels and programming facilities to be made available for public, municipal and educational usage over and above thosachannels and programming facilities required to be made available either by the Federal Communications Commission or the provisions of this ordinance. (g) A statement of the applicant's proposed schedule of charges for inclusion in Section 13 herein and which schedule should be incorporated herein by reference. (h) A statement detailing the corporate organization of the applicant, if any, including the names and addresses of his officers and directors and the division of shares between shareholders. (i) A statement describing all intra -company relationships of the applicant including parent, subsidiary or affiliated companies. (j) A statement setting forth all agreements and understandings whether written or oral existing between the applicant and any other person, firm, group or corporation w-_th respect to any franchise awarded hereunder and the conduct of the operation thereof. (k) If applicant is a corporation, a financial statement for the previous fiscal year together with a Board Resolution authorizing the obtainment and expenditure of such funds as are required to construct, install and operate the Broadband Telecommunications Network contemplated hereunder. (1) If requested by the City, suitable written evidence, accompanied by a projected ten (10) year operations balance sheet, from a recognized lending or funding agency, or agencies, addressed both to the applicant and to the City, advising that the applicant's financial ability and planned operation have been analyzed by the agency or agencies and that this lending or funding agency or agencies is prepared to make the required funds available to applicant if he is awarded a franchise. -37- • (m) A brief technical description of the type of electronic equipment and coaxial cable proposed for use by the applicant. (n) A statement from the applicant's senior technical staff member or consultant advising that he has reviewed the Service Standards, the Network Technical Standards and Measurements and Construction Standards set forth herein, and that the applicant's planned network and operations thereof will meet all the requirements set forth therein. (o) A statement as to whether the applicant has applied for or been granted a franchise in any other city, together with the name and address of the City Attorney in each such city. (p) A statement as to whether the applicant or any of its officers or directors or holders of ten percent (107) or more of its voting stock has in the past ten (10) years been charged with or convicted of any crime other than a routine traffic offense and the disposition of each such case. (q) Such supplementary, additional or other information that the City deems reasonably necessary for its determinations. (r) Applications for a franchise hereunder from any grantee shall be attached hereto and incorporated herein by reference. Adopted by the Ci Council A,: st 21, 1972. Mayor At t: A so3LIA-A) City Cler: nistration: • App,oved as to form and legality: • e 110 CABLE TELEVISION ENABLING ORDINANCE INDEX PAGE NO 1. General Provisions 1 2. Definitions 1 3. Grant of Authority 2 4. Duration of Franchise 3 5. Limitations of Franchise 3 6. Franchise Payment 4 7. Security for Performance 4 8. Liability Insurance & Indemnification 5 9. Grantee Rules 6 10. Service Contract 6 11. Books & Records of Grantee 7 45 12. Filing Communications with Regulatory Agencies 7 A\ r 13. Fees and Rates 7 61\ iJ 14. Use of Telephone Facilities 10 J 15. Conditions of Street Occupancy 10 16. Future Conditions of Use 12 \� \1)- 17. Changes Required by Public Improvements 13 18. Inspection of Property and Records 13 19. System Installation Schedule 14 41020. Extent of Service 14 /21. System Extension to New Subscribers 15 22. Operational Standards 15 23. Technical Standards 16 24. Service to be Provided by the Company 25 25. Interconnection 28 26. Additional Services 28 27. Emergency Use of Facilities 29 28. Miscellaneous Provisions 29 29. Citizens' Cable Advisory Board 30 30. Preferential or Discriminatory Practices Prohibited 30 31. Use of Data From Subscribers 30 32. Rights Reserved to the City 31 33. Violations 32 34. Conditions of Grantee Acceptance 32 35. Failure of City to Enforce Franchise Terms 33 36. Expiration and Revocation 33 37. Applicable Laws 34 38. Rights of Amendment and Revocation 34 39. Severability 36 40. Acceptance 36 41. Acceptance Fee 36 42. Publication Costs 36 43. Effective Date 36 44. Applications for Franchise 37 •