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HomeMy WebLinkAbout1235 - ADMIN Ordinance - City Council - 1973/10/09e OgICT/A/41, 4=e 21 1235 5 /" '3' d AUG 2 0 1973 ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 1197, SETTING FORTH TERMS AND CONdDITIONS FOR THE INSTALLATION, MAINTENANCE AND OPERATION OF A BROADBAND TELECOMMUNICATIONS NETWORK (BTN) FOR THE TRANSMISSION OF CATV AND OTHER SERVICES, ELECTRICAL IMPULSES OF TELEVISION, RADIO AND OTHER INTELLIGENCES, EITHER ANALOG OR DIGITAL, FOR SALE TO OR USE BY INHABITANTS OF THE CITY; SETTING FORTH TERMS AND CONDITIONS; PROVIDING FOR CITY REGULATION; ESTABLISHING A CITIZENS CABLE ADVISORY COMMITTEE INDEX Section 1. Definitions (a) City (b) Council (c) Person (d) Public agency (e) Non-profit agency (f) Subscriber (g) CATV System (h) Installation (i) Gross subscriber revenue (j) Duplex network (k) Dual cable network (1) Shadow cables (m) Pay TV (n) Commencement of service (o) Full network service (p) Franchise (q) Franchise ordinance (r) Franchisee Sec. 2. Franchise Required 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 3 3 3 Sec. 3. Significance of Franchise; Limitations 3 (a) Authority Granted 3 (b) Pole Space Obligation 4 (c) Privileges Must Be Specified 4 (d) Privileges Subordinate 4 (e) Consent to Transfer 4 (f) Change of Control of Franchisee 4 (g) Previous Rights Abandoned 4 (h) Subject to Other Rules and Regulations 5 Sec. 4. Duration of Franchise 5 Sec. 5. Acceptance 5 (a) Procedure 5 (b) Franchisee to Have No Recourse 5 (c) Acceptance of Power and Authority of City 5 (d) Inducements Not Offered 5 (e) Franchisee Accepts Terms of Franchise 6 Sec. 6. Franchise Payment 6 (a) Payment to the City 6 (b) Method of Computation; Interest 6 (c) Rights of Recomputation 6 Sec. 7. Security for Performance 7 (a) Performance Bond 7 (b) Delays in Performance 7 (c) Rights Reserved to City 7 Sec. 8. Liability Insurance and Indemnification 7 (a) Public Liability Insurance (b) Review of Coverage (c) Indemnification Sec. 9. System Capability; Facilities 7 9 9 10 (a) System Channel Carriage Capability 10 CO Reverse Signal Capability (Duplex Network) 10 (c) Designated Service Districts 10 (d) Upgrading of Facilities, Equipment and Service 10 (e) Emergency Power 10 (f) Business Office 10 (g) Emergency Capability and Use 10 (h) Studio Facilities; Personnel 11 (i) Continuous Operation 11 (j) Computer Access 11 Sec. 10. Quality of Reception; Technical Standards 11 (a) Quality of Reception 11 (b) Technical Definitions 11 (c) Technical Standards 13 (d) Performance Tests and Certification 16 (e) Alternate Approach 16 (f) Measurements Used in Performance Tests 17 ii Sec. 11. Channels to Be Provided by Franchisee 19 (a) Public Access Channel 19 (b) Education and Governmental Use Channels 19 (c) Channel Capacity Expansion 20 (d) Channel Use Fees 20 (e) Local Origination Programming 20 Sec. 12. Inter -Connection 21 (a) Required for Network 21 (b) Required for Educational and Governmental Use Channels 21 Sec. 13. System Installation Schedule 21 (a) Permit Application 21 (b) Commencement of Construction 21 (c) Commencement of Service 22 (d) Complete Service 22 (e) Completion Requirements 22 (f) Delays and Extensions of Time 22 (g) Failure to Complete 22 Sec. 14. Fees, Rates, and Charges 23 (a) Basis; Approval 23 (b) Changes in Rates, Fees or Charges 23 (c) Charge for Converter 24 (d) Disconnection 24 (e) Per -Program or Per -Channel Charges 24 (f) Judicial Review 24 (g) Ccu rt Affirmation 24 Sec. 15. Conditions of Street Occupancy 25 (a) Approval of Proposed Construction 25 (b) Excavation Permits 25 (c) Changes Required by Public Improvements 25 (d) Facilities Not to be Hazardous or Interfere 25 (e) Method of Installation 26 (f) Protection of Facilities 26 (g) Notice of City Improvements 26 (h) Compliance with Codes 26 (i) Moving of Wires 27 (j) Tree Trimming 27 (k) Record of Equipment and Facilities to be Maintained 27 iii Sec. 16. Operation of the Franchise 27 (a) Consumer Complaints 27 (b) Repairs and Maintenance 27 (c) Reports, Books and Records of Franchisee 28 (d) Rules of the Franchisee 29 (e) Approval of Service Contract 29 (f) Filing Communications with Regulatory Agencies 29 (g) Plan Filed 29 (h) Franchisee Assistance in Developing Public Uses 30 (i) Preferential or Discriminatory Practices Prohibited 30 (j) Subscriber Privacy 31 (k) Ownership Interest Prohibited 31 (1) Service Continuation, Notification of Subscribers 31 (m) Removal of Roof Top Antennae 32 (n) Sale or Service of TV Receivers 32 (o) Filing Requirements 32 (p) Use by Political Candidates 32 Sec. 17. Rights Reserved to the City; Resolution of Disputes 32 (a) No Impairment of Eminent Domain 32 (b) Franchisee Agrees to City's Rights 32 (c) City's Right of Intervention 32 (d) Powers of the City 33 (e) Resolution of Disputes and Appeal Procedures 33 (f) City's Transfer of Functions 33 Sec. 18. Enforcement 33 (a) Failure to Enforce Provisions (b) Contravention of Franchise Sec. 19. Right of Amendment Reserved to City 33 33 33 Sec. 20. Expiration or Revocation of Franchise 34 (a) Expiration; Extended Operation 34 (b) Grounds for Revocation 34 (c) Procedure Prior to Revocation 35 (d) Injunctive Relief 35 (e) Right of City to Purchase; Disposition of Facilities 35 (f) Transaction Affecting Ownership or Control of Franchise Facilities 35 (g) Restoration of Property 36 iv ' Sec. 21. Unauthorized Connection 36 411 Sec. 22. Citizens Cable Advisory Committee 36 (a) Composition 36 (b) Purpose 36 Sec. 23. Applications for a Franchise 37 Sec. 24. Publication Costs 38 Sec. 25. Severability 39 Sec. 26. Short Title 39 v IMP • • •1 Section 5. Sec. 16 (n) of Ordinance No. 1235 is amended to read as follows: (n) Sale of Service of TV Receivers. Neither the franchisee during the period of the franchise nor any of its subsidiaries parents, or affiliate companies, associations or organizations, officers or directors or stockholders holding five percent or more of outstanding stock of the franchisee, shall, within the corporate limits of the city or within ten miles in any direction, directly or indirectly engage in the retail sale, renting, leasing, or repairing of radio or television receivers or their appurtenances, except in the maintenance of this and other Cable TV Systems. Section 6. Sec. 20 (b) (5) of Ordinance No. 1235 is amended to read as follows: (b) (5) If any court of competent jurisdiction, the FCC, or any state regulatory body by rule, decision, orother action determines that any provision of the franchise is invalid or unenforceable, in the opinion of the city all provisions of the franchise being material and essential provisions both to the granting and the continuance of the franchise, without which the city would not have granted the franchise. This provision (5) shall not apply when and after the franchisee has commenced construction under 13 (b). Section 7. Sec. 4 of Ordinance No. 1236 is amended to read as follows: Sec. 4. Commencement of Service. The franchisee shall commence service as defined in Ordinance No. 1197 as amended, when sufficient distribution facilities have been installed so as to make full network service available to at least 4,500 subscribers in the City of St. Louis Park, including multiple dwellings, actual operations being subsequent to receipt of certificate of compliance from the FCC. Section 8. Sec. 5 of Ordinance No. 1236 is amended to read as follows: Sec. 5. Guaranty of Acceptance. This franchise is issued to the company on the express condition that its acceptance of the franchise will include an unconditional guarantee by Warner Cable Corporation, a Delaware corporation, of the faithful performance by the company of all the terms and conditions of the franchise. Section 9. Effective Date. This ordinance shall take effect fifteen days after its publication. Atyest • Adopted by= �//ate City Clerk Reviewed for administration: r-�. City Manager Appas to form d legality: City torney 09, 0 • s ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 1197, SETTING FORTH TERMS AND CONDITIONS FOR THE INSTALLATION, MAINTENANCE AND OPERATION OF A BROADBAND TELECOPIPIUNICATIONS NETWORK (BTN) FOR THE TRANSMISSION OF CATV AND OTHER SERVICES, ELECTRICAL IMPULSES OF TELEVISION, RADIO AND OTHER INTELLIGENCES, EITHER ANALOG OR DIGITAL, FOR SALE TO OR USE BY INHABITANTS OF THE CITY; SETTING FORTH TERMS AND CONDITIONS; PROVIDING FOR CITY REGULATION; ESTABLISIIING A CITIZENS CABLE ADVISORY COMMITTEE. THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK ORDAINS: Section 1. Ordinance No. 1197 is amended to read as follows: Sec. 1. Definitions. In this ordinance the following terms, phrases, words, and their derivatives have the meanings given. 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" means the City of St. Louis Park. (b) "Council" means the City Council of the City of St. Louis Park. (c) "Person" means any person, firm, partnership, association, corporation, company or organization. (d) "Public agency" means any governmental unit or political subdivision of the state of Minnesota, including school districts and other special purpose governmental bodies. (e) "Non-profit agency" means any non-profit corporation or association, charitable organization, or other organization not operated for profit. (f) "Subscriber" means any person who receives service from a franchisee. (g) "CATV System" or "broadband telecommunications network" means 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. • (h) "Installation" means the fixing for use or the putting in place in a room of the equipment necessary for reception of signals from the CATV system, exclusive of a television or radio receiver. (i) ''Gross subscriber revenue' means all revenue received by the franchisee, its affiliates, parent organization, or subsidiaries, in connection with the operation_ of the broadband tele- communications network within the corporate limits of the city, including but not limited to receipts from service charges, installa- tion and disconnect charges, advertising, channel leasing, data trans- mission, per -program charges, and rental income from use of facilities. (j) 'Duplex network' means a two-way communications network consisting of coaxial cables and amplifiers which can carry signals in two directions. (k) "Dual cable network" means a network consisting of simultaneously installed c'uplicate trunk and distribution coaxial cables, each capable of two-way communications, fastened together or otherwise connected and used for transmission and distribution of both digital and analog signals, including both television and radio. (1) ''Shadow cables' mean the second cables in a "dual cable network" and means the absence of all associated electronic equipment and the second drop cables to subscribers required to activate and place into service the second cables of the "dual cable network". (m) 'Pay TV' means origination or access cablecasting operations for which a per -program or finer -channel charge is made to subscribers. (n) "Commencement of service' occurs when sufficient distribution facilities have been placed in use to offer "full network service" to at least the number of subscribers specified in the franchise ordinance. (o) 'Full network service' means subscriber services provided by the franchisee, including both the delivery of broadcast signals and programming originated over the cable system, covered by the regular monthly charge paid by all subscribers, and also subscriber services provided by the franchisee for which a special charge is made based on program or service content or time of usage. (p) "Franchise" means the incorporated terms of the franchise, franchise ordinance and acceptance agreement and all rights, powers, duties, obligations, and privileges under them. 2 • (q) "Franchise ordinance" means the separate ordinance by which the franchise is granted to the franchisee. (r) 'Franchisee' means all persons including, but not limited to, subsidiaries, parents, or affiliate companies, associations or organizations having any rights, pouers, privileges, duties, liabilities or obligations, under this ordinance, and under the franchise ordinance, collectively called the ''Franchise', and also includes all persons having or claiming any title to or interest in the system, whether by reason of the franchise itself directly or by interest in a subsidiary, parent, or affiliate company, association or organization or by any subcontract, transfer, assignment, mortgage security agreement, management agreement, or operating agreement, or whether otherwise arising or creates?. Sec. 2. Franchise Required. After the effective date of this ordinance, no person shall establish, operate or carry on the business of distributing to any person in the city any television signals, or radio signals or other intelligences, either analog or digital, by means of a hroadban_0 telecommunications network unless a franchise has first been obtained pursuant to the provisions of this ordinance, and unless such franchise is in full force and effect. Ho person shall 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 on any tentative subdivision map approved by the city, any equipment or facilities for distributing any television signals or radio signals or other intelligences either analog or digital over a broadband telecommunications network unless a franchise authorizing the use of the streets or properties or areas has first been obtained pursuant to the provisions of this ordinance, and unless such franchise is in full force and effect. Sec. 3. Significance of Franchise;. Limitations. (a) Authority Granted. A franchise to construct, operate and maintain a broadband telecommunications network within the city shall be governed by the terms and conditions of this ordinance. A franchise grants to the holder a nonexclusive right to construct, operate and maintain a broadband telecommunications network 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 and additions to the system. 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 franchise shall extend to the territory so annexed; and all facilities owned, maintained or operated by the franchisee located within, under or over streets of the territory so annexed shall thereafter be subject to the franchise. 3 CD) Pole Space O;Dligation. A Lranchise shall not relieve the franchisee of any obligation to obtain pole space from any department of the city, a utility company, or from others maintaining poles in the streets. (c) Privileges ":ust De Specified. :To privilege or exemption shall be inferred from the granting of any franchise unless it is specifically prescribed. Nothing in this ordinance shall be deemed to require the granting of a franchise when in the opinion of the Council it would not be in the public interest to do so. (d) Privileges Subordinate. Any privilege claimed under a franchise in any street or other public property shall be subordinate to any lawful occupancy of the street or other public property or to any present or future improvements such as sidewalks and roadway widening. (e) Consent to Transfer. A franchise shall be a privilege to be held in personal trust by the original recipient. It cannot 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 IDe prescribed. Any request for a transfer or assignment shall be made in writing and filed in the office of the city clerk at least 30 days prior to the approval of any transfer or assignment. Approval of a transfer or assignment will not be unreasonably withheld by the city. (f) Change of Control of Franchisee. Drior approval of the City Council shall be required where oirnership or control of more than 30ri of the right of control of the franchisee, or of a partner in a partnership holding a franchise, is acquired in any manner by a person or group of persons acting in concert, none of whom already own or control 30,' or more of such right of control, singularly or collectively. Jy its acceptance of this franchise, the franchisee and any partners of a franchisee soecifically grant and agree that any such acquisition occurring without prior approval of the City Council shall constitute a violation of this franchise. (g) Previous nights Abandoned. A franchise shall be in lieu of any and all other rights, privileges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by a franchisee or any successor pertaining to the construction, operation, or maintenance of a cable communications system in the city. The acceptance of a franchise shall operate, as between franchisee and the city, as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the city. All construction, operation and maintenance by the franchisee of any cable system in the city shall be under the franchise and not under any other right, privilege, power, immunity, or authority. 4 • privilege, power, immunity, or authority. (h) Subject to Other Rules and Regulations. Any franchise shall be subject to all apr_licable rules and regulations of the FCC and of any state agency having jurisdiction over the operations of the franchisee. In the event that the FCC or any state agency having jurisdiction should modify their rules and regulations relating to local regulatory relationships, the city will amend this ordinance within six months of the effective date of the modification, to be in conformance with the modification. Sec. 4. Duration of Franchise. Upon filing of the proper acceptance by the franchisee, the bond and the required insurance, the franchise shall take effect as of the effective date of the franchise ordinance and shall continue in full force and effect for a term of 15 years. Sec. 5. Acceptance. (a) Procedure. A franchise shall be unconditionally accepted by the franchisee by written instrument executed and acknow- ledged by the franchisee and filed with the city clerk within 20 days after the granting of a franchise. The written instrument shall express the unqualified acceptance of the franchise and its terms, conditions, and provisions. she franchisee shall agree in the instrument to abide by, to observe and perform it, and shall declare that its statements and recitals are correct and that the franchisee has made and does make the agreements, statements and admissions recited in the franchise. (b) Franchisee to Have No Recourse. Except as expressly provided in this franchise, the franchisee shall have no recourse against the city for any loss, cost, expense or damage arising out of the provisions or requirements of this franchise or because of the enforcement of the terms of the franchise by the city nor for the failure of the city to have the authority to grant all or any part of this franchise. (c) Acceptance of Power and Authority of City. The franchisee expressly acknowledges that in accepting this franchise, it has relied upon its own investigation and understanding of the power and authority of the city to grant this franchise. (d) Inducements Not Offered. The franchisee 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 that is not included in this ordinance. 5 1 (e) Franchisee Accepts Terms of Franchise. The franchisee acknowledges by the acceptance of this franchise that it has carefully read its terms and conditions and it is swilling to and does accept all of the risks of the meaning of such terms and conditions. Sec. 6. Franchise Payment. (a) Payment to the City. A franchisee shall pay to the city an annual franchise fee in an amount equal to five percent of the annual gross subscriber revenues received by the franchisee for services provided within the city for the use of the streets and other facilities of the city in the operation of the broadband telecommunications network and for municipal supervision. (b) ilethod of Computation; Interest. Sales taxes or other taxes levied directly on a per -subscription basis and collected by the franchisee shall be deducted from the local gross operating revenues before computation of sums due the city is made. The franchise payment shall be in addition to any other payment owed to the city by the franchisee. Payments due the city under the terms of this ordinance shall be computed quarterly as of September 30, December 31, =larch 31, and June 30 for the preceding quarter and shall be paid on or before the thirtieth calendar clay from each said computation date at the office of the city treasurer during his regular business hours. The payments shall begin as of the effective date of the franchise and the initial payment shall be clue on the date of the first quarterly payment occurring more than 90 days after the franchisee commences service. The city shall he furnished a statement with each payment, certified as correct by the franchisee reflecting the total amounts of gross subscriber revenues, and the above charges, deductions and computations, for the three months` payment period covered by the payment. Once each year the franchisee shall furnish the city with a statement by a certified public accountant reflecting the total amount of gross subscriber revenue and the calculation of the payments due to the city. In the event that any payment is not made as required, interest on the amount due, as determined from the gross operating receipts computed by a public accountant, shall accrue from that date at the annual rate of 12 percent. 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 facilities and supervision. (c) Rights of Recomputation. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the city may have for further or additional sums payable as a franchise fee under this ordinance or for the performance of any 6 other obligation. Sec. 7. Security for Performance. (a) Performance Boncl. The franchisee shall, concurrently with its acceptance of this franchise, file with the city and at all times thereafter maintain in full force and effect for the term of this franchise or any renewal, at franchisee's sole expense, a corporate surety bond in a responsible company licensed to do business in the state of i!innesota in the amount of $300,000 renewable annually, and conditioned upon the faithful performance of franchisee, and upon the further condition that in the event franchisee shall fail to comply with any law, ordinance or regulation governing the franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by the city as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the franchisee, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond, this condition to be a continuing obligation for the duration of the franchise and any renewal and until the franchisee has liquidated all of its obligations with the city that may arise from the acceptance of this franchisee or renewal by the franchisee or from its exercise of any privilege or right granted by the franchise. The bond shall provide that at least 30 days' prior written notice of either intention not to renew, cancellation or material change in the bond shall be given to the city by filing the same with the city clerk. Notwithstanding above provisions of this subsection, the City Council may in its sole discretion waive the bond or reduce the required amount after five years of operation of a system under the franchise, by the franchisee, its successors or assigns, which, in the sole opinion of the City Council has been satisfactory. (b) Delays in Performance. The bond required in this section shall provide that with 15 days prior written notice to the franchisee, the city may recover against the surety the sums provided for failure to complete construction in accordance with any provision of Sec. 13, System Installation Schedule. (c) Rights Reserved to City. The rights reserved by the city with respect to the bond are in addition to all other rights the city may have under this ordinance or any other law. Sec. 8. Liability Insurance and Indemnification. (a) Public Liability Insurance. (1) A franchisee shall immediately upon the award of a franchise, furnish to the city, and at all times during the existence of the franchise, maintain in full force and effect, 7 at its own cost and expense, the following insurance: (a) for claims arising under any workmen's compensation, employees liability, or any similar employee benefit acts; (b) for claims because of bodily injury, sickness, disease or death of any person or persons other than the franchisee's employees, and for claims because of damage to or destruction of property of others including loss of use. (2) Such insurance shall be written for amounts not less than the following as respects subparagraph (a) above: Workmen's compensation statutory Employee's liability $100,000 each occurrence and as respects subparagraph (b) above: or bodily injury property damage Bodily injury and property damage with a combined single limit of liability of $1,000,000 each occurrence General and automobile $ 500,000 each person General and automobile $1,000,000 each occurrence General and automobile $ 500,000 each occurrence General $ 500,000 aggregate (3) The insurance referred to in subparagraph (b) above shall be written under the comprehensive general and comprehen- sive automobile liability policy forms, including coverage for all owned, hired, and non -owned automobiles. The franchisee may at its option provide the limits of liability as set out above by a combination of the above described policy forms, and an umbrella excess liability policy. (4) The policy or policies shall afford the same limits of liability as set out above for liability assumed under contract. (5) All responsibility for payment of any sums resulting from any deductible provision, corridor, or self-insured retention conditions of the policy or policies shall remain with the franchisee. 8 (6) The policy or policies shall waive any •nd all governmental immunity as a defense in any action brought against the insures?. (7) Approval of the insurance by the city shall not in any way relieve or decrease the liability of the franchisee, and it is expressly understood that the city Coes not in any way represent that the above specified insurance or limits of liability are sufficient or adequate to protect the franchisee's interest or liabilities. (8) Evidence of the above insurance in the form of insurance certificates shall be furnished the city clerk by the franchisee. If there are special limitations on the insurance policy, then a copy of the policy exclusions must be submitted with the insurance certificate. Proof of insurance shall be submitted directly to the city clerk for review and approval by the city attorney. The franchisee shall not begin any activities until the city has reviewed and approved the insurance certificates and has so notified the franchisee directly in writing. (9) The policies shall name the city, its officers, boards, commissions, agents, emoloyees and appointees as additional insureds and shall contain a provision that a written notice of cancellation or reduction in coverage of the policy shall be delivered to the city 30 days in advance of the effective date. If the insurance �s provided by a policy which also covers the franchisee or any other ntity or person other than those above named, then the policy shall contain an endorsement concerning gross liability, which shall be subject to approval by the city attorney. (b) Review of Coverage. The city shall annually review the above insurance provisions; and, if it is determined that the insurance coverage is inadequate, additional insurance may be required as is reasonably determined by the city and shall be provided by the franchisee. (c) Indemnification. The franchisee shall indemnify and hold harmless the city and its agents and employees from and against all claims, damages, losses and expenses, including attorneys° fees, which they may suffer or for which they may be held liable, arising out of or resulting from the assertion against them of any claims, debts or obligations in consequence of the granting of the franchise by the city or the operation of the system by the franchisee, its employees, agents, or subcontractors. The city disclaims all liability arising out of the utilization of the public access channel and the franchisee agrees to indemnify and hold the city harmless for any damage that may result from such a claim. 9 • • • Sec. 9. System Capability; Facilities. (a) System Channel Carriage Capability. The franchisee shall install a "dual cable network" having a minimum bandwidth capability of five to 300 '?Iiz . At the option of the franchisee, the second cables may be "Jhadow cables". 7rhenever a reverse or feedback circuit is routed through a subscriber's premises, it shall be connecter' so as to permit subscriber notification and deactiviation. (11) Reverse Signal Capability (Duplex network). The franchisee shall provide in the original construction a duplex network capable of reverse direction signals from all drops. This carriage capability shall be at least in accordance with the requirements of the Federal Communications Commission's 3rd Report and Order. (c) Designated Service Districts. The franchisee shall design and construct the system in a hub configuration so as to permit the discrete distribution of Class II, Class III, and Class IV cable television channels within at least five designated service districts, the boundaries on which shall be approved by the City Council. (d) Upgrading of Facilities, Equipment and Service. The franchisee shall upgrade its facilities, equipment and service so that its network is as advanced as the current state of technology with field -proven equipment will allow. Failure of the franchisee to install additional channel capacity as required by the Federal Communications Commission shall be a breach of the franchise ordinance. (e) Emergency Power. 'Then, in the opinion of the city, it becomes economically and technically feasible, the franchisee shall provide emergency and automatic standby power for the studio, headend and trunk lines that will enable emergency use of the facilities as provider' in subsection (g) of this section. (f) 3usiness Office. The franchisee shall maintain an office in the city at a location convenient to the public. (g) Emergency Capability and Use. The franchisee shall, in the case of any emergency or disaster, make its entire system available without charge to the city or to any other governmental or civil defense agency that the city shall designate. The franchisee 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. The franchisee shall provide in a location to - 10 - be designated by the city, all equipment necessary for use of the 4110 emergency alert system. (li) Studio Facilities; Personnel. (1) The franchisee shall 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 within the studio and that at least one studio shall provide for audience participation. A franchisee's plans for its business office and color studio to be constructed within the city shall be submitted to the city for approval. These plans shall include such items as studio size, accessibility to the public, type of facilities, hours of operation and estimated construction time. (2) The franchisee shall provide a color capable mobile origination facility,, subject to approval of the city, with capability for preparation and playback of either live or taped programming for use within the city. (3) The franchisee shall, upon request and at no charge provide the production facilities and personnel reasonably necessary to assist in the preparation and transmission of govern- mental and educational programs. (i) Continuous Operation. The network shall be designed and rated for 24 -hour -a -day continuous operation. (j) Computer Access. The franchisee shall, when it becomes technically and economically viable, provide computer access to all subscribers. Sec. 10. Quality of Reception; Technical Standards. The broadband telecommunications network shall meet the following standards, subject to future modification by the city, including modification by standards adopted by the Federal Communications Commission that are more stringent than those established by the city. (a) Quality of Reception. The network shall 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 color 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, provided that the subscriber's television receiver is in good repair and properly adjusted. The network shall 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 interfering with other electrical or electronic networks or with the reception of other television or radio receivers in the area not connected to the network. (b) Technical Definitions. (1) 'Cable television channel" means 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" means a signaling path provided by a cable television system to relay to subscriber terminals television broadcast programs that are received off -the -air or that are obtained by microwave or by direct connection to a television broadcast station. (3) "Class II cable television channel" means 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 are not involved in a broadcast transmission path. (4) "Class III cable television channel" means 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" means 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) "Channel frecuency response" means within a cable television channel, the relationship as measured at a subscriber terminal between amplitude and frequency of a constant -amplitude input signal. (7) "Network noise" means undesired and/or fluctuating disturbances within a cable television channel, exclusive of undesired signals of discreet frequency, which degrade the repro- duction 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 MHz bandwidth between 1.25 and 5.25 tlHz above the lower channel boundary of a broadband telecommunications network. - 12 - • (8) "Subscriber terminal" means the broadband telecommunications network 75 ohm cable terminal to which the subscriber's equipment is connected. Separate terminals may be provided for delivery of cable television signals, FM broadcast or other signals of differing classifications. (9) "Terminal isolation" means at any subscriber terminal, the attenuation between that terminal and any other subscriber terminal in that network. (10) "Visual signal level" means the rms voltage produced by the visual signal during the transmission of synchronizing pulses. (11) "BTU network channel capacity" means 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 as a result. (c) Technical Standards. The following requirements apply to the broadband telecommunications network performance for Class I, Class II and 6 IiHz Discrete Video Cable Television Channels, as measured at any equivalent subscriber terminal with a matched termination. They also apply to each of the cable television channels in which signals picked off -air are delivered to the terminals. The measurements shall not include the receiver converter if such is required at the subscriber'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 that it is technically feasible. (2) The frequency of the visual carriers shall be maintained 1.25 i-IHz + 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 ?Hz + 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 - 13 - origination channels shall have aural -visual separation + 1 KHz 4110 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 ohms 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 -peak 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 3% 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, or (c) any local origination channel. (8) The ratio of visual signal level to the rms amplitude of any coherent disturbances, such as inter -modulation products, or discrete -frequency interfering 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 - 14 - between separate television and MI broadcast terminals for the 4t) same subscriber shall not be less than 15 decibels. (10) Radiation from the broadband telecommunications network shall he limited as follows Frequencies Limit Distance (uV/m) (feet) Un to and including 54 IIIz 15 100 Over 54 up to and including 216 :II1z Over 216 411z 20 10 15 100 (11) All echoes originating 'rithin the network shall meet the nonvisibility criteria developed by P. 'lertz of the Bell Telephone Company, i.e., shall not be greater than -36db for echoes dispersed more than 2 microseconds. For shorter term dispersed echoes, the network (including headend terminal) shall follow the "Mertz Curve", merging to a `K" pulse deformation not exceeding 4% 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 Hulse or equivalent measurement techniques shall be used for these measurements. All unused subscriber tan ports may be terminated during network measurement. (12) 4etuork frequency response as measured at any subscriber terminal shall not vary more than + 2 db over the 6:1Hz bandwidth of any cable television channel or corresponding portion of the F:i and mid or upper band spectrums if utilized. (13) 'Ietwork 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 below the normal transmission level as measured at any point of the network trunk (network cross -modulation specifications baser on :ICTA standard). (14) Subscriber installations shall conform where applicable to current relevant provisions of the National Electric Code, current edition. s (15) :Iotwithstanding the fact that the network may be in compliance 17ith 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. (u) Performance Tests and Certification. (1) The franchisee shall be responsible for insuring that the net:►ork is designed, installed, and operated in a manner which fully complies with the technical standards of this ordinance. (2) The franchisee shall conduct, as set forth by the FCC in their 3rd Report and Order, complete performance tests of the network at least once each calendar year (at intervals not to exceed 14 months) and the franchisee shall shoe, at any other time, upon reasonable request by the city, that the network does, in fact, comply with the technical standards. The franchisee shall file with the city a certificate detailing the test standards and the results of the tests. The performance tests will he directed at determining the extent to which the network complies with the technical standards set forth in this ordinance, and at the discretion of the city shall be conductee in the presence of a technical representative appointed by the city and compensated by the franchisee. The tests shall be made on each cable television channel in the network, and shall include Measurements made at the extremities of at least two trunk and three taps selected at random, at least one of which is representative of a terminal most distant from the network input in terms of cable distance. A statement of the qualifications of the person performing the test and a descrip- tion of the instruments and procedures used shall he attached to the test results filed [►ith the city. (3) Ater reviewing the certificates of compliance required in paragraph (2) the city may require that additional measurements be made, or that a clarifying explanation be supplied (e) Alternate Approach. If the franchisee 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) of this section, he may apply to the city for permission to operate with such equinrient provided that an adequate showing is made which establishes that the subscribers are provided an equivalent quality of service. The burden is on the franchisee for full technical proof of equivalent performance. - 16 - • (f) measurements Used in Performance Tests. (1) Neasurernents made in tests to demonstrate continuous 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 telecommunications 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 shall be operated at levels approxi- mating those used for normal operation. Pilot tones, auxiliary signals, and non -television signals normally carried on the network shall 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 measure- ments; 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. (2) When it mav 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 shall 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 mav 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 mav 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 level normally present at that frequency and location. Uith the meter and variable attenuator connected in series to the subscriber terminal under tests, the signal level shall be measured and recorded. i•ieasurements shall then be made in a similar manner for all - 17 - • 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 41IHz 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 shall be a bandwidth of at least 4 IiHz and appropriate corrections shall be made to account for its gain. (6) The amplitude of discrete frequency interfering signals within a cable television channel may be determined with either a spectrum analyzer or with a frequency -selective volt -meter (field strength meter described in subsection (5) above), 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 shall be close to the mid -frequency of the channel being tested. This test shall be performed with 150 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 volt -meter 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 system cross -modulation measurement may be performed in accordance with NCTA Standard 002-0267. - 18 - (10) The network hum mddulation may he measured at each video carrier frequency on the network using a calibrated signal generator, a detector and an oscilloscope. The signal generator shall be connedted, 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. Sec. 11. Channels to be Provided by Franchisee. (a) Public Access Channel. (1) The franchisee shall provide, as required by the FCC, at commencement of 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. It shall have production facilities, equipment, and personnel available without cost to cablecast live studio presentations, 16mm, Super 8mm, and 8mm sound film presentations, black and white and color video-tape presentations on one-half and one inch video tape of five minutes or less. Fees charged for any presentation over five minutes shall be limited to production costs attributed solely to personnel and equipment utilized. The franchisee also shall make available to the public portable video cameras, film cameras, and tape recording equipment at reasonable cost. (2) The franchisee shall develop procedures, subject to Council approval for providing notification to all subscribers of the schedule of presentations known in advance to be available on the public access channel. (b) Education and Governmental Use Channels. The franchisee shall provide, as required by the FCC, at commencement of service, two fully operational Class II cable channels, without charge, for a period of five years from - 19 - • • commencement of service for educational and governmental use. One channel shall be designated for use by educational institu- tions and one channel shall be designated for use by the city. The franchisee shall provide a second channel on the same terms each to the educational institutions and to the city within 90 days after request of the city or the educational institutions for the additional channel. The governmental use channel and 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 years. (c) Channel Capacity Expansion. To fulfill programming requests within the CATV system, the franchisee shall provide fully operational Class II Cable channels as required by the FCC. Requests for additional channel service shall be submitted to the franchisee in writing. The number of channels or partial channels desired, the amount of time desired on each, and the time schedule desired on each shall be specified in the request. Any request for the use of a channel for 80% of any three-hour period for 80a of all weekdays for four successive weeks which is accompanied by written agreement to pay the approved fees for that service shall be granted as a matter of right and shall be made available within six months. (d) Channel Use Fees. The franchisee may establish a channel use or lease fee for the use of Class II, Class III or Class IV Cable channels provided to requesting parties. The lease agreement shall be terminable by the lessee or lessor by 30 days° notice of either party's intention to terminate. The franchisee may not terminate a leased channel agreement with public or non-profit agencies without prior approval of the City Council. A request for termination shall be based on the failure of the lessee to provide programming consistent with its request or for failure to pay authorized fees and shall not be based upon inability of the franchisee to provide additional channels upon demand of other parties. The provisions of this section shall not apply to users of discrete cable system services including public or non-profit agencies. (e) Local Origination Programming. The franchisee 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 is not limited to coverage and reporting of sporting and cultural events, and other activities and events of the city, the schools, community and service organizations, religious institutions, and individuals. The franchisee shall, in determining the use of this channel, consider any recommendations of the Citizens Cable Advisory Committee that may be transmitted by the city to the franchisee. - 20 - r Sec. 12. Inter -Connection. (a) Required for Network. Subject to obtaining inter -connection approval from adjoining network franchisors and operators, the franchisee shall inter -connect its broadband telecommunications network with all other broadband telecommuni- cations networks serving those municipalities that adjoin the city, upon request of the city. In addition, the franchisee shall make diligent effort to inter -connect its network with other networks in the seven -county metropolitan Twin City area. (b) Required for Educational and Governmental Use Channels. Upon written request by the city or the educational institutions, subject to FCC approval, the franchisee shall provide, within 60 days of the request, inter -connected service for the educational and governmental use channels at no cost for the time period provided for by Sec. 11 (b) and (c). Proposed use, frequency bandwidth, letter of numeric designation, and hours of operation shall be specified. Sec. 13. System Installation Schedule. (a) Permit Application. Within 30 days after acceptance of a franchise, the franchisee shall make application to obtain all necessary permits, licenses and authorizations which are required in the conduct of its business. The franchisee shall diligently apply for all necessary permits and authorizations and shall diligently pursue their acquisition including, but not limited to, necessary pole attachments, contracts, microwave carrier licenses, any permits, licenses, or authorizations to be granted by regulatory agencies having jurisdiction over the operation of the broadband telecommunications network or their associated microwave transmission facilities and necessary authorizations from the Federal Aviation Agency to construct receiving antenna towers. Copies of all applications, communications and all permits, authorizations, contracts, or waivers shall be promptly filed with the city by the franchisee. After the franchisee has diligently pursued the acquisition of necessary pole attachment contracts, or other necessary easements, and where such necessary contracts have not been entered or easements obtained after a reasonable period of time, the franchisee shall submit the matter to the city and the city may, at its discretion, provide assistance to insure the scheduled construction of the system. If the city decides in its sole discretion to acquire the necessary rights and easements by condemnation, the franchisee shall bear all costs. (b) Commencement of Construction. Within 45 days after obtaining the necessary permits, licenses and authorizations, other than FCC certification, the franchisee shall commence construction and installation of the broadband telecommunications network. - 21 - (c) Commencement of Service. Within 180 days after the commencement of construction, the franchisee shall commence service to subscribers as defined in Sec. 1 (n). The completion of the construction and installation shall be pursued with reasonable diligence. (d) Complete Service. The services provided by a franchisee shall be made available by it to all areas within the corporate limits of the city, within 18 months after the commencement of service. (e) Completion Requirements. All time limits stated in the franchise ordinance are of the essence in the franchise. Failure of the franchisee to obtain necessary permits and to commence and diligently pursue installation and completion of the system shall be grounds for termination of the franchise; provided, 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 that the franchisee, acting in good faith, experiences delays by reason of circumstances beyond its control. (f) Delays and Extensions of Time. The franchisee shall not be liable for any delays in installation if the failure to perform arises out of causes beyond its control and without its fault or negligence. Such causes may include, but are not restricted to, acts of God or of the public enemy, acts of the city in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather. If the failure to perform is caused by the default of a subcontractor or supplier, and if such default arises out of causes beyond the control of both the franchisee and subcontractor or supplier, and without the fault or negligences of either of them, the franchisee shall not be liable for any excess costs of failure to perform, unless the supplies or services to be furnished by the subcontractor or supplier were obtainable from other sources in sufficient time to permit the franchisee to meet the required schedule. No extension of time shall be allowed under this section unless a written request is submitted to the city within seven days of the claimed delay. (g) Failure to Complete. The franchisee shall pay to the city $ 500 per day for failure to commence service as set forth in subsection (c) of this section, and to complete service as set forth in subsection (d) of this section. - 22 - Sec. 14. Fees, later, and Charges. (a) Basis, Approval. Fees, rates, or charges for any service nrovidec: shall he fair, reasonable and non-discriminatory and designed to meet all necessary costs of service, including a fair and reasonable return on investment under economical and efficient management. All fees, ratos and charges shall be filed with and approved by the Council after hearing before they become effective. The requested initial fees, rates, or charges shall be filed with the city within 30 days after the effective date of the franchise. (1) Changes in Rates, Fees or Charges. (1) There shall be no increase in the initially approved rates, fees or charges for three years after the commence- ment of service, excluding the effect of subsequent imposition of any federal, state or local taxes, copyright payments or other legally imposed fees or charges. (2) Anv subsequent increase requests, in addition to other factors described in this section, shall take into consideration the consumer price index for the ':inneanolis- St. Paul area comniled by the U. S. Department of Labor Statistics and additional reasonable costs for increased or additional services. The franchisee shall nay the reasonable costs of determining an appropriate increase including but not limited to, costs incurred by the city to retain a rate expert to assist the city in its deliberations. (3) If the franchisee recuests a change, it shall present in detail in writing the statistical basis, in addition to other requirements of this section, for the proposed fee change at least 90 days prior to the proposed effective date. (4) A rate expert's report is not required for action upon a proposed increase mutually agreeable to the city and the franchisee. However, a public hearing shall be held before any rate, fee or charge increase is approved. Notice shall be published at least once in the official ne•1spaner no less than 20 days prior to the hearing. The city may take such steps as it deems necessary to obtain other information before acting upon franchisee's request. :10 action shall he taken in regard to alteration of rate, fee or charge schedules except by written resolution of the city Council accompanied by the Council's findings and conclusions. Copies shall be served upon the franchisee by personal delivery to its business office. - 23 - w • • (c) Charge for Converter. The franchisee shall make no monthly service charge for the use of a converter; however, a reasonable security deposit may be required. (c1) Disconnection. There shall be no charge for disconnection from the broadband telecomraunications network however, following any disconnection, a reasonable reconnection charge may be made. If a subscriber has failed to pay a properly due monthly subscriber fee, 60 days after the due date of the fee, the franchisee may cause disconnection of the subscriber's cable installation; however, upon payment in full of the delinquent monthly subscriber fee, and a reasonable fee for reinstatement, the franchisee shall promptly reinstate the subscriber's cable service. (e) 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 under economical and efficient management. The franchisee shall provide the city with advance notice of programs subject to per -program or per -channel subscription at rates consistent with established rates for similarly scheduled programming. (f) Judicial Review. The franchisee shall have prompt judicial review of any resolution of the City Council on rates, fees, or charges in the District Court of Hennepin County if application is made to the court within 30 days after service of the resolution on the franchisee. Review by the court shall he without a jury and shall be confined to the record, except that in cases of alleged irregularity in procedure before the City Council not shown on the record, testimony may he taken by the court. Except as otherwise provided, all review proceedings shall be conducted according to the provisions of 'iinnesota Statutes, Sections 15.0424 - 15.0426. (g) Court Affirmation. The court may affirm the decision of the City Council, remand the case for further proceedings or may reverse or modify the decision if substantial rights of the appellant have been *prejudiced because the City Council's findings or conclusions are: (1) In violation of constitutional provisions; or (2) In excess of the authority conferred upon the City Council by this ordinance; or (3) :lade upon unlawful procedures; or - 24 - • (n) Affected by other error of law; or (5) Unsupported by substantial evidence in the entire record; or (6) Arbitrary or capricious. Sec. 15. Conditions of Public Property Occupancy. (a) Approval of Proposed Construction. The franchisee shall first obtain the approval of the director of nubile works before any construction is commenced on streets, alleys, sidewalks, driveways, Public grounds or nlaces of the city. Aoplication for approval of construction shall he in a form specified by the director of public works. The franchisee shall give the city reasonable written notice of proposed construction to allow coordination of all work between the city and the franchisee. (b) Excavation Permits. A franchisee shall not open or disturb the surface of any street, alley, sidewalk, driveway, or public ground for any purpose without first having obtained a permit to do so in the mannur provided by ordinance. (c) Changes Required by Public Improvements. The franchisee shall, at—Its expense, protect, support, temporarily disconnect, relocate in or re_:ove from a street, alley, sidewalk, driveway, or Public around or place any property of the franchisee when required by the director of public works by reason of traffic conditions, public safety, street vacation, street construction, change or establishment of street grade, installation or improve- ment of sewers, drains, water pipes, notrer lines, signal lines, tracks or any other type of structure, improvement or alteration of public property. (d) Facilities ; 7ot to hazardous or Interfere. All wires, conduits, cables and other property and facilities shall he 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, alleys, sidewalks, driveways or public grounds or places of the city. The franchisee shall keep and maintain all of its property in good condition, order and repair at any reasonable time and upon reasonable notice. The city shall have the right to inspect and examine property owned or used, in part or in whole, by the franchisee. A franchisee shall not place poles or other equipment where they will interfere with the rights or reasonable convenience of adjoining property owners, or with any gas, electric, or telephone fixtures or with any water hydrants or mains. All poles or other fixtures placed in a street shall be placed in the right-of-way between the roadway and private property as specified by the director of public works. 25 - • w (e) "iethod of Installation. All wires, cables, amplifiers and other property shall be constructed and. installed in an orderly and workmanlike manner. All cables and Tires shall be installed -parallel with existing telephone and electric wires whenever possible. tultiple cable configurations shall be arranged in parallel and bundled, with due respect for engineering and safety considerations. Any portion of a broadband telecommunications network that is installed in a park or publicly owned open space area shall be installe,l underground in a manner approved by the city. All installations shall be underground in those areas of the city where public utilities providing either telephone or electric utility facilities 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 franchisee may install its service above ground provided that at such time as those facilities'are required to be placed underground, the franchisee shall likewise place its facilities underground without additional cost to the residents of the city except as provided under the provisions of Sec. 14. (f) Protection of Facilities. 1lothing contained in this section shall relieve any person, company or corporation from liability arising out of the failure to exercise reasonable care to avoid injuring the franchisee'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. (q) :Totice of City 1 tnrave' cnts. Tie city shall give the franchisee reasonable not[c o dans for street improvements where paving or resurfacing of a permanent nature is involved. The notice shall contain the nature and character of the imProverients , the streets upon which tie imn rovements are to be made, the extent of the improvements and the date of commencement of work. :'otice shall be given a sufficient length of time in advance to permit the franchisee to make any additions, alterations, or repairs to its facilities deemed necessary, considering seasonal working conditions in advance of the actual commencement of the work. (a) Compliance with Codes. All construction, installation, maintenance and operation of broadband telecommuni- cations networks or facilities shall comply with t'io provisions of the "lational Electrical Safety Code as prepared by the National Eureau of Standards, the National electrical Code of the Llational Board of Fire Underwriters, the ,ell Telephone system Cocle of Pole Line Construction, standards issued by the FCC or other federal or state regulatory agencies, and local zoning regulations. Every - s5 broadband telecom'-Zunications network installed, constructed, maintained or operated in the city shall be designed., constructed, installed, maintained and operated as not to endanger or interfere with the safety of persons or property in the city. (i) Tloving Aires. Upon request made at least five days in advance by a holder of a building moving permit for the purpose of moving buildings, the franchisee shall temporarily raise, lower, or remove its wires. The holder of the building moving permit shall pay the reasonable cost of the requested service and may be required to pay that amount in advance. (j) Trimming Trees. The franchisee shall be allowed to trim trees upon and overhanging streets, alleys, sidewalks, driveways and public grounds and places of the city to prevent the branches of trees from coming in contact with the wires and cables of the company. All trimming shall he done under the supervision and direction of the city and at the expense of the franchisee. (1:) Record of Equipment and Facilities to be -Maintained. The franchisee shall at all times make and keep at its business office full and complete plans and records showing the exact location of all broadband telecommunication network equipment and facilities installed or in use in the city. The franchisee shall furnish the city a current record of equipment and facilities and maps. drawn to scale, showing all broadband telecommunications network equipment installed or in use in the city. Sec. 16. Operation of the Franchise. (a) Consumer Complaints. Any person may file complaints regarding inadequate service response or any other aspect of any broadband telecommunications system in writing at the office of the city manager. (h) Repairs and _?aintenance. (1) Maintenance of the System. The franchisee shall install and maintain the broadband telecommunications network so as to avoid unreasonable or repetitive interruptions in service to subscribers. (2) Interruption of Service. 'ienever it is necessary to interrupt service to make tests, repairs, adjustments or installations, the franchisee shall do so during a period of minimum subscriber use. Unless an interruption is unforeseen and immediately necessary, the franchisee shall give reasonable notice to the subscribers affected. All costs incurred in effecting such tests, repairs, adjustments or installations shall be borne by the franchisee unless otherwise provided by law, ordinance or regulation. 27 - (3) Service Response and Rebate. (a) The franchisee shall keep its business office open during normal business hours, maintain a listed telephone and be equipped to receive complaints twenty-four hours a clay. The franchisee shall also provide prompt service response, seven days a week for all complaints and requests for repairs or adjustments. Calls received prior to 2:00 P. shall be answered the same day. In no event shall the response time for calls received subsequent to 2:00 P. A. exceed 24 hours. (b) If the franchisee fails to correct a service deficiency within 24 hours, it shall rebate or credit 1/30th of the monthly charge for "full network service" to each subscriber for each 24 hours or fraction thereof after the first 24 hours during which a subscriber is without service following the report of loss of service, except to the extent that restoration of service is prevented by strike, injunction or other cause beyond the control of the franchisee. (c) Reports, Books and Records of Franchisee. (1) Report on Operations. The franchisee shall Prepare and furnish to the city at the time and in the form prescribed by the city manager, such reports with respect to its operations, affairs, transactions or property, as may be reasonably necessary or appropriate to the preservation of the rights, or performance of the duties of the city or anv of its officers in connection with the franchise. (2) Report on Complaints. The franchisee shall report to the city at least quarterly, on fouls specified by the city manager, the complaints received from subscribers during each reporting period. The reports shall include the type of complaint and how it was resolved, including a record of the time the complaint was received and the time which may have been required to make any repairs or adjustments. (3) Record of Franchisee Orne_rship. The franchisee shall keep on file with the city a current list of the names and current addresses of both its officers and of any share- holders holding 10% or more of the franchisee's outstanding stock. The officers listed shall include the systems manager and the chief engineer. Partners shall also be identified. (0 Records and Property Available for Inspection. At all reasonable times, the franchisee shall permit any duly autho- rized representative of the city to inspect, examine or audit all records and property of the franchisee situated within or without the city, and to examine and transcribe any and all maps and other - 28 - • records kept or maintained by the franchisee or under its control which deal 'lith the operations, affairs, transactions or property of the franchisee with respect to this 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 city 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 franchisee. (5) Report on Channel Use; i?otice. The franchisee shall maintain on file with the city a report stating the network channel capacity, listing the cable television channels which the network delivers to its subscribers, and the television station or stations whose signals are delivered on each channel of the network under normal operating conditions. hen television stations are to be deleted or added, the city and all subscribers shall he notified in writing 30 days prior to the date of a deletion or addition. (cl) Rules of the Franchisee. The franchisee may rromulgate such rules, regulations, terms and conditions governing the conduct of its business as may be reasonably necessary to enable it to exercise its rights and perform its obligations under the franchise and to assure an uninterrupted service to each and all of its customers: except that such rules, regulations, terms and conditions shall not be in conflict with the provisions of this ordinance, other ordinances of the city or the laws of the state of "Iinnesota or the United States. A current copy of such rules, regulations, terms and conditions shall be filed with the city. (e) Approval of Service Contract. If a written service contract is used by a franchisee in its dealings with subscribers, the franchisee shall obtain city approval of the fore and terms of the contract prior to enterinq into any such service contracts. The franchisee shall =lake no changes in the form or terms of any such service contract without prior approval of the city. (f) Filing Communications with Regulatory Agencies. Copies of all petitions, annlications an.3 communications that are submitted by a franchisee to the Federal Communications Commission, or other federal or state regulatory commission or agency having jurisdiction in respect to any matter affecting broadband tele- communications net'iork operations within the city, shall also be submitted simultaneously to the city by filing the same with the city manager. (g) Plan Filed. A franchisee shall submit within 30 days after commencement of service and annually thereafter, a plan stating the proposed number of channels which will be devoted to network affiliated television stations; non -network 29 independent television stations, including educational television stations, and channels to be devoted to locally originating programs. The plan shall also contain the following: (1) An estimate of the total number of broadcast hours per week per channel which the franchisee proposes to devote to local progran_1ing. (2) The types of local programs it Proposes to originate. (3) A nr000secl programing schedule for locally originated channels. (4) A description of the proposed advertising grog ra`t . (5) Plans for ;providing a duplex system and FPI multiplex stereo and music channels. (h) Franchisee Assistance in Developing Public Uses. The franchisee shall assist the city in developing the full capabilities of cable television for public use, including but not limited to, its application to such public services as traffic surveillance, monitoring flows in crater and sewer lines, measuring air pollution through sensor systems, public service messages, training of personnel, fire and burglary detection, polling and surveying, and data processing.. (i) Preferential or Discriminatory Practices Prohibited. (1) The franchisee shall establish and maintain an Affirmative Action Prograr~ providing that no individual shall be discriminated against with respect to compensation, terms, conditions or other privileges or employment because of race, color, religion, sex, national origin, physical condition or age. The franchisee's Affirmative Action Prograrl shall be maintained on file with the city manager beginning prior to the commencement of service and shall be in compliance with current and future policies estaz,lished in the city's kffirriative Action Program. (2) The franchisee 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. This provision shall not be deemed to prohibit promotional cam- paigns to stimulate subscriptions to the syste:l or other legitimate uses thereof; nor shall it be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to •Ihich any customer coming within such classifications shall be entitled. (3) The entire system of the franchisee shall be operated in a manner consistent yith the principle of fairness and equal accessibility of its facilities, equipment, channels, studios, and other services to all citizens, businesses, public agencies, or other entities having a legitimate use for the system; and no one shall be arbitrarily excluded from its use; allocation of use of said facilities shall be made according to the rules or decisions of regulatory agencies affecting the same, and where such rules or decisions are not effective to resolve a dispute between conflicting users or potential users, the *natter shall be submitted for resolution by the City Council. (j) Subscriber Privacy. A franchisee shall not, without city approval, initiate or use any forri or procedure or devise for procuring information or data from cable system subscribers' terminals by use of the cable system. Further, it shall be unlawful for anv franchisee without the expressed consent of a subscriber on each occasion, either in T•Triting, orally or by electro -mechanical means, to activate and/or utilize the return path of a "duplex network" in any manner from the subscribers' premises. (1:) Ownership Interests Prohibited. No franchisee shall own directly or indirectly, any interest either in a ne%ispaper, or in a radio or television station that has any significant distribution or reception within the city. (1) Service Continuation, Notification of Subscribers. I3efore providing cable service to any subscriber, the franchisee shall notify the subscriber in writing that the franchisee is making use of the public right-of-way in the city to provide cable television services; that the use of such rights -of -tray is in no way guaranteed; that if the continued use of such rights-of-way are denied for any reason, the franchisee will make every reasonable effort to provide service over alternate routes and that the city, its officers and its employees are not responsible in any way for any interruptions or discontinuance of service. - 31 - ('-a) Removal of Roof Top Antennae. The franchisee may not, as a condition of service, remove and dispose of a roof ton antenna. (n) Sale or Service of TV Receivers. Neither the franchisee during the period of the franchise nor any of its subsidiaries, parents, or affiliate companies, associations or organizations, officers or directors or stockholders holding five percent or more of outstanding stock of the franchisee, shall, within the corporate limits of the city or within ten miles in any direction, directly or indirectly engage in the retail sale, renting, leasing, or repairing of radio or television receivers or their appurtenances. (o) Filing Requirements. All matters required to be filed with the city shall be filed with the city clerk unless otherwise provided. (p) Use by Political Candidates. The franchisee shall provide an equal opportunity for use by local political candidates of channels and facilities under the control of the franchisee, in accordance with the applicable rules and regulations of the FCC. Sec. 17. Rights Reserved to the City; Resolution of Disputes. (a) no Impairment of Eminent Domain. Nothing herein shall be construed to contract away, modify or abridge, either for a term or in perpetuity, the city's right to eminent domain, including the right of the city to acquire the property of the franchisee through the exercise of the right of eminent domain, which shall not include any amount for the franchise itself or for any of the rights or privileges granted. Co) Franchisee Agrees to City's Rights. The city reserves every right and power which is required to be reserved or provided by any ordinance of the city or other authority, and the franchisee by its acceptance of the franchise, agrees to be bound thereby and to comply with any action or requirements of the city in its exercise of such rights or powers which have been or will be enacted or established. (c) City's Right of Intervention. The city shall have the right to intervene and the franchisee specifically agrees by its accentance of the franchise not to oppose such intervention by the city in any suit or proceeding to which the franchisee is a party. - 32 - (d) Powers of the City. “either the granting of any franchise nor any provision governing the franchise shall constitute a waiver or bar to the exercise of any right or power of the city. (e) Resolution of Disputes and Appeal Procedures. The city 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. The city manager is authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of a franchisee, either on behalf of the city, or the franchisee, in the best interest of the public. If the franchisee is dissatisfied with the decision of the city manager, an anneal may be taken to the City Council for hearing and final determination. The City 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 franchisee or from any provision of this ordinance. The decision of the City Council shall be final. (f) City's Transfer of Functions. Any right or power conferred. or duty imposed 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. Sec. 18. Enforcement. (a) Failure to Enforce Provisions. The franchisee shall not be excused from complying with any of the terms and conciitions of the franchise by any failure of the city upon one or more occasions to insist upon or to seek compliance with any such terms or conditions. (b) Contravention of Franchise. The cost of any litigation incurred by the city to enforce this ordinance or the franchise ordinance, or in relation to a franchise or the revocation of a franchise, shall he reimbursed to the city by the franchisee. Such costs shall include filing fees, costs of depositions, discovery, and e;coert witnesses, all other expenses of suit, and a reasonable attorney's fee. Sec. 19. Right of Amendment'Reserved to City. The franchisee recognizes the right of the city to make reasonable amend- ments to this ordinance during the term of the franchise upon 60 days prior notice to the franchisee or without notice in the case of emergency amendments. - 33 Sec. 20. Expiration or Revocation of Franchise. (a) Expiration; Extended Operation. Uoon the expiration of a franchise, the city may by resolution direct the franchisee to operate the franchise for an extended period of not to exceed six :months after the date of expiration. The franchisee agrees to comply with such a direction. The city shall pay to the franchisee any additional reasonable and necessary costs incurred by it in operating the franchise during an extension. All provisions of the franchise shall continue to apply to operations during an extension period. The city shall serve Nrritten notice at the franchisee's business office of intent to extend under this sectic at least 30 days prior to expiration. (b) Grounds for Revocation. The city reserves the right to revoke any franchise in the following circumstances. (1) If the franchisee should default in the performance of any of its obligations under the franchise, and shall fail to cure the default within 30 days after receipt of written notice of the default. (2) Ir a petition is filed by or against the franchisee under the Thnl:ruptcy Act, or any other insolvency or creditors' rights law, state or federal and the franchisee shall fail to have it dismissed within 90 days. (3) If a receiver, trustee or liquidator of the franchisee is applied for or appointed for all or part of its assets. (4) If the franchisee becomes insolvent or makes an assignment for the benefit of creditors. (5) If any court of competent jurisdiction, the FCC, or any state regulatory body by rule, decision, or other action determines that any provision of the franchise is invalid or unenforceable, in the opinion of the city all provisions of the franchise being material and essential provisions both to the granting and the continuance of the franchise, without which the city would not have granted the franchise. • (c) Procedure Prior to Revocation. Upon the occurrence of any of the events enumerated in this section, the City Council may, after hearing, upon 30 days written notice to the franchisee citing the reasons alleged to constitute cause for revocation, find such facts and set a reasonable time in which the franchisee must remedy the occurrence. `!ritten notice shall be given of the decision by the Council. If the franchisee fails to remedy within the time specified, the Council may revoke the franchise by repeal of the ordinance. The repeal ordinance shall he effective not more than months after its adoption. (d) Injunctive Relief. Pending final disposition of proceedings to revoke a franchise, or during a period of extension of a franchise after expiration, the city may obtain injunctive relief to obtain compliancewith the provisions of the franchise and main- tain the continuity of service to subscribers. Such relief shall be in addition to and not in lieu of other remedies available to the city. (e) Right of City to Purchase: Disposition of Facilities. Upon expiration of the term of the franchise, or upon revocation, or upon other termination as provided by law, or upon receipt of application for aprroval of an assignment of the franchise or upon change of control, as set forth in Sections 3 (e) and 3 (f); the city shall have the right to petition the Hennepin County District Court to acquire any part or all of the franchisee's property by right of eminent domain as provided by Sec. 17 (a). The judgment in favor of the franchisee in eminent domain proceedings shall be satisfied upon payment by the city of the amount of the judgment decreased by the amount of any damages sustained by the city in connection with revocation or expiration inclu•'ing, without limitation, payment made by the city to another person to operate the broadband telecommunications network for a temporary period after revocation. The city shall diligently pursue judicial determination of damages to be set off against the condemnation award. (f) Transactions Affecting Ownership or Control of Franchise Facilities. To protect the interests of the city under any franchise granted pursuant to this ordinance, and in order that the city may exercise its option to acquire the facilities and property of the network upon expiration or revocation of the rights and privileges of the franchisee, the franchisee shall not make, execute or enter into any deed, deed of trust, mortgage, contract, conditional sales contract, or any loan, lease, ple:age, sale; pole agreement, or any other agreement concerning any of the facilities or property, real or personal, of the network, where such transaction would be inimical to the rights of the city under any franchise if consummated without - 35 • • adherence to the provisions of Subsections (1) and (2): (1) Without the express approval of the city, which shall not be unreasonably withheld, and (2) Without a written assent filed with the city binding upon the person in whom any right, power, privilege, duty, title, interest, claim or demand in or to the franchise or the network is created or vested, to the effect that such right, power, privilege, duty, title, interest, claim or demand is and shall be held and exercised subject to all the terms and provisions of the franchise, including this provision. The city may require such written assent to be contained in the instrument or document creating or vesting such right, power, privilege, duty, title, interest, claim or demand. This subsection shall not apply to the disposition of worn out or obsolete facilities or personal property in the normal course of carrying on the CATV business. The City Council shall determine what transactions may be inimical to the rights of the city. (g) Restoration of Property. In removing its plants, structures and equipment, the franchisee shall refill at its own expense, any excavation that shall be made by it and shall leave all public ways and places in as good condition as that prevailing prior to the company's removal of its equipment and appliances, without affecting the electric or telephone cables, wires, or attachments. The director of public works shall inspect and approve the condition of the public ways and public places and cables, wires, attachments and poles after removal. Liability insurance and indemnity provided in Sec. 8 and the security for performance provided in Sec. 7 shall continue in full force and effect during the period of removal. Sec. 21. Unauthorized Connections. It shall be unlawful for any person to make an unauthorized connection, whether physically electrically, acoustically, inductively or otherwise, with any part of a franchised broadband telecommunications network within the city for the purpose of taking or receiving television signals, radio signals, pictures, programs, or sound. Sec. 22. Citizens Cable Advisory Committee. There is hereby established as an advisory committee to the city, a Citizens Cable Advisory Board. (a) Composition. The committee 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 committee shall be responsible.for recommending to the City Council programs for stimulating and promoting public interest and participation in the educational, public access and local origination channels and shall be further responsible - 36 - "feu' recommending procedures for the utilization of these channels. In addition, the committee shall advise and make recommendations as requested by the City Council on specific matters affecting the broadband telecommunications network within the city including its future inter -connections with surrounding communities. • s Sec. 23. Applications for a Franchise. Applications for a franchise shall be filet 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. (h) Payment of the required filing fee (c) tid bond in the amount of $25,000, either as a cash deposit or as a certified check. (d) The franchisee shall pay to the city at the time of granting of the franchise an acceptance fee in the sum of $25,000. This fee shall be used by the city to cover its administrative expenses in supervising the franchise applications, preparation of the ordinance, and supervision of the construction and operation of the broadband telecommunications network. (e) A general description of the apnlicant's proposed operation, including a description of the proposed service area. (f) A statement of the television and radio services proposed, including both off -the -air and locally originated signals. (g) A statement setting forth a description of the television channels and programrning facilities to be made available for public, municipal and educational usage over and above those channels and programming facilities required to be made available either by the FCC or the provisions of this ordinance. (h) A statement of the applicant's proposed schedule charges. of (i) A statement detailing the corporate organization of the applicant, if any, including the names and addresses of its officers and directors and the division of shares between shareholders. (j) A statement describing all intra -company relation- ships of the applicant including parent, subsidiary or affiliated companies. t (k) A statement setting forth all agreements and understandings, whether written or oral, existing between the applicant and any other person, firm, group or corporation with respect to any franchise awarded and the conduct of operations under the franchise. (1) If applicant is a corporation, a financial state- ment from 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 contemplated broadband telecom=munications network. (m) If requested by the city, suitable written evidence, accompanied by a projected ten 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 it is awarded a franchise. (n) A brief technical description of the type of electronic equipment and coaxial cable proposed for use. (o) A statement from the applicant's senior technical staff member or consultant, advising that he has reviewed the applicable service standards, the network technical standards and measurements and construction standards, and that the applicant's planned network and operations will meet all the requirements. (p) 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. (q) A statement as to whether the applicant or any of its officers or directors or holders of ten percent or more of its voting stock has in the nast ten years been charged with or convicted of any crime other than a routine traffic offense and the disposition of each such case. (r) Such supplementary, additional or other information that the city deems reasonably necessary for its determinations. Sec. 24. Publication Costs. The franchisee shall assume the cost of publication of the franchise ordinance as required by law. A bill for publication costs shall be presented to the franchisee by the city clerk upon the franchisee's filing of acceptance and shall be paid at that time. - 38 - Sec. 25. Severability. ''ubject to the provisions of Sec. 20 (a) (5), if any section, subsection, sentence, clause or Dhrase of the franchise ordinance, or of this or -finance is determined to be illegal, invalid, or unenforceahle 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. The invalidity of any portion of this ordinance shall not affect any consideration or other obligation require0 of the franchisee. Sec. 25. Short Title. The ordinance shall be knov7n and may be cite(' as the "Cahle Regulation Ordinance". Sec. 2. E`f_ective sate. This ordinance Trill become effective fifteen days after publication, exce't that Section 23 shall be effective on October 1, 1973. Adopted by t'.e City Council Attest: ity Clerk • (3.14:4#" -**-1) AV 2 o 1973 Reviewed f Administration: Approved as to form and legality: City • torney - 39 - • • SUN NEWSPAPERS AFFIDAVIT OF PUBLICATION ST. LOUISPARKSUN 6601 W. 78th St. Bloomington, Minnesota State of Minnesota ss. County of Hennepin J R RITCHAY, being duly sworn. on oath says he is and during all times here stated has been the vice president and printer of the newspaper known as The St Louis Park Sun and has full knowledge of the facts herein stated as follows (1) Said newspaper is printed in the English language in newspaper format and in column and sheet form equivalent in printed space to at least 900 square inches (2) Said newspaper is a weekly and is distributed at least once each week (3) Said newspaper has 50% of its news columns devoted to news of local interest to the community which it purports to serve and does not wholly duplicate any other blication and is not made up entirely of patents, plate matter and advertisements (4) Said alp, spaper is circulated in and near the municipality which it purports to serve, has at least copies regularly delivered to paying subscribers, has an average of at least 75% of its total iiiscirculation currently paid or no more than three months in arrears and has entry as second-class atter in its local post -office (5) Said newspaper purports to serve the City of St Louis Park the County of Hennepin and it has its known office of issue in the City of Bloomington in said county, established and open during its regular business hours for the gathermg of news, sale of advertisements and sale of subscriptions and maintained by the managing officer or persons in its employ and subject to his direction and control during all such regular business hours and devoted exclusively during such regular business hours to the business of the news- paper and business related thereto (6) Said newspaper files a copy of each issue immediately with the State Historical Society (7) Said newspaper has complied with all the foregoing conditions for at least two years preceding the day or dates of publication mentioned below (8) Said newspaper has filed with the Secretary of State of Minnesota prior to January 1. 1968 and each January 1 thereafter an affidavit m the form prescribed by the Secretary of State and signed by the publisher of said newspaper and sworn to before a notary public stating that the newspaper is a legal newspaper. He further states on oath that the printed Ordinance No. 1236 hereto attached as a part hereof was cut from the columns of said newspaper, and was printed and published therein in the English language, once each week, for On® successive weeks, that it was first so published on Th11re the 23 day of August 19_13 and was thereafter printed and published on every to and including 4111 the day of 19 and that the following is a printed copy the lower case alphabet from A to Z, both inclusive, and is hereby acknowledged as being ., size and kind of type used in the composition and publication of said notice, to -wit. abcdefghijklmnopqrstuvwxyz abcdefghilklmnopgrstuvwxyz Subscribed and sworn to before me this 23 M Vest, No Commission �SPublic, Hennepin County, Minn ires April 18th, 1979 day of August 19_ 73 (Whew! Publication, ORDINANCE NO 1236 AN ORDINANCE GRANTING A FRAN- CHISE TO WARNER CABLE COMPANY OF ST LOUIS PARK, A MINNESOTA ' PARTNERSHIP, ITS SUCCESSORS AND ASSIGNS, TO CONSTRUCT, OP- ERATE, AND MAINTAIN IN THE CITY OF ST LOUiS PARK A BROADBAND TELECOMMUNICATIONS NETWORK FOR THE TRANSMISSION OF CATV AND OTHER SERVICES, ELECTRICAL IMPULSES OF TELEVISION, RADIO AND OTHER INTELLIGENCES, EI- THER ANALOG OR DIGITAL, FOR SALE OR USE BY INHABITANTS OF THE CITY OF ST LOUIS PARK, IN- CLUDING NECESSARY POLES, POLE LINES, FIXTURES AND APPURTE- NANCES, AND TO USE THE STREETS, ALLEYS, PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITE( FOR THESE PURPOSES, PRESCRIBING CERTAIN TERMS AND CONDITIONS THE CITY COUNCIL OF ST LOUiS PARK ORDAINS Section 1 Purposes. The City has deter- mined that it is desirable and to the ad- vantage of the citizens of SL Louis Park to grant a broadband telecommunications network franchise During the course of prolonged investigation and extended public heanngs, the City Council has con- sidered the needs of the city and the ex- penence, capability, quahfications, char- acter and reputation of the vanous apph- cants, as well as the adequacy and feasi- bility of their construction arrangements , and their plans for programming. As a result, the City Council finds it is in the pubhc interest to grant a franchise td the company Sec 2 Grant of Franchise Pursuant to the provisions of Ordinance No 1197 and pursuant to the charter of the city of St. Lotus Park, a non-exclusive francluse is granted to Warner Cable Company of St. Louis Park for the right and privilege of constructing, operating and maintaining in, on, over, under and across the streets, alleys, sidewalks, driveways and pubhc grounds and places of the city a broad- band telecommunications network, in - chiding all,poles, pole Lines, conduits, fix- tures'aid -appurtenances; for the purpose of the transmisluSirdE CATV and other services electrical impulses of televi- sion:radio and other intelligences, either analog or d e»=1 and for pnvale and pub- lic use in add collie city and its residents The termsuifthis,franeWce shall include the provisions of Ordinancla 1197, as amended, '=Jin Ordinance Setting Forth Terms and Contitioas for the Instalation, Maintenance and Operation of a Broad- , band Tele=communications Network 1 BTN i for the Transmission of CATV and Other Intelligences, Either Analog or Digital, for Sale or Use by inhabitants of the City of Si Lotus Park, Minnesota " Sec 3 Incorporaiioo of Proposals of the Company The Company adopts as a part of its application and proposal for a broadband telecommunications network franchise the contents of all documents that have been submitted to the city by Warner Cable Corporation, a New,York 1 corporation, Cypress Communications Corporation, Northeast Minnesota Cable Company, or their officers, directors o - agents, relating to the application for a—. broadband telecommunications network franchise All offers of or ' Jpresentations 1 as to facilities, service and similar mat- ters contained in the application and pro- posal of the company, except as inconsist- ent with law or ordinance, are incorporat- ed into this ordinance by reference and made a part of the franchise The apphca- � tion and proposal of the company consists of the following documents a A proposal to provide communi- ty antenna television service 10 the City of SL Louis Park Minnesota presented by Cypress Communica- tions Corp. dated October 12, 1971, signed by Jerry Pohnsky b Letter to Assistant to City Man- ager, dated December 20, 1971, signed by Marc B Nathanson Direc- tor irerfor of Corporate Development c Transcript of CATV interview on January 22, 1972 (present Marc Nathanson, Martin Blatt, Jerry Po- Linsky, Burt Hams, George Mehan i d Memorandum to City of St Louis Park from Martin Blatt, attorney for Cypress Communica- tions Corporation dated April 27, 1972 e Local programming for City of St Lotus Park Part 1 - Program • Opportunities for CATV, Part 11 - Nation-wide examples of current Cypress programs, Part III - current proposal - with letter of July 7, 1972, John Calvetti f Amendments to A Proposal to Provide Antenna Television Service to the City of Si Lotus Park. Minne- sota by Cypress Communications Corporation and Northeast Minneso- , to Cable Company, dated August 2, 1972 signed by Burt 1 Harris. g Engineering statement dated 1 August 3, 1972 by Theodore J Swan- son Vice'Prestdent of Engineering, Cypress Communications Corpora- tion h Letter to City -Manager dated September 12 1972 signed by Harvey L Simpson i Letter to City Manager dated September 12 1972 signed by Marc B Nathanson t 1 Letter to Assistant to the City 1 Manager dated October 2,1972 signed 1 by Marc B Nathanson k Letter 10 'City' Manager dated January 22, 1973,a ed by Marc B Nathauson.t ri!io it 1 Commentf oil iocaIiorigination, SL Louis•Airirierdinafiea i no date i made bv!J01in 1L4 SlLetti Vice Pres- ident-Programifiing',Cypress Com- municationsCorp - m Comments on technical specif1- I cations St Lotus Park Ordinance Ino dates by Theodore J Swanson Vice President - Engineering Cv- F- press Communications Corp n Drawing of the proposed office and studios, Cypress SL Lotus Park Cable TV sysl®i (no date) o Supplemental information by Cypress Communications Corp and Northeast Minnesota Cable Company Ino date l p Programming Activities of Cy- press Communications Corporation With respect to the cablecasung fund to be used for community programming, the company will pay to the city the sum of 910,000 during the first year after the commencement of service it is intended that the amount of this fund shall grow over the duration of the franchise and remain in proportion to the amount paid in the first year The city and the franchi- see will confer at the end of the first and each subsequent year to review such fac- tors as inflation, growth in the number of subscribers and growth in income, and shall determine the amount of the cable - casting fund for the following year Sec 4 Commencement of Service The franchisee shall commence service, as defined in Ordinance No 1197, as amend- ed, when full network service is available to at least 4,500 subscribers in the City of Si Louis Park, including multiple dwell- ings Sec 5. Guaranty of Acceptance. This franchise is issued to the company on the express condition that its acceptance of the franchise will include an uncondition- al guarantee by Warner Cable Corpora- tion, a New York corporation, of the faith- ful performance by the company of all the terms and conditions of the franchise Sec 6 Effective Date This ordinance shall take effect fifteen days after its pub- lication Adopted by the City Council August 23, 1973 s' FRANK J PUC(', Mayor Attest s EARL E HANSON City Clerk Reviewed for administration s CHR ISCNERCHES City Manager Approved as to form and legality s WAYNE POPHAM City Attorney (Aug 23, 19731—SLP •1• Nle No Affidavit of Publication ST. LOUISPARK,, UN St. Louis Park, Minnesota In The Matter Of been 1114 has „fuJ EngIis] space once ea ant&rest publication; 1lewspaper, b00 copies ere Sar1y de11v;dred to.; paying subscribers, has an average of,: at least 75,% of its total .- -"circulation C rently paid -or na--more, han three months in arrears and has entry as 'ter ,in its local post -office. (5)) Said ewspaper.purports to serve the City of St. Louis: Park e ,County;4of Hennepin and it has its known office of issue in the City of 'Bloomington in 'Tsafd" countyk; 1ishedh;and open during its regular business hours for the gathering of'`:news ' sale of advertisements and sale of subscriptions and maintained by the managing officer • or persons::ins it$ eri7Vlo ' ail d4:subject to his direction and control during all such, regular business hours .and devoted' exclusively during such regular business . hours to the business- of the news paper anO' bi'sir ens related thereto.' (6) Said newspaper files a copy of each 'issue immediately with., the,_,SSf ter',iistorical: Society. (7) Said newspaper has complied with all the foregoing condi -io'ns Ifo ate least 'tw'o year" preceding. `the -day or --'dates: of, publication lnentloned 'below. (8) Said.newspaper has.filed wi the Secretary of State: of Mi `�` 'esota rior January 1;;.1968: and eac i Tamiai y 1 thereafter { `n affidavit in the form' prescribed by the SecretaryStateoil ` and=si`ned lid the a `li`sher of " t � y p b , said newspaper and sworn to before a notary. public stating that the newspaptr' is a ,legal newspaper. Yeing duly'. swprn,. on ;oath says 1}e ;is and' during all time here stated has nt'and .printer' of the °new'spaper known as The St. Louis Park Sun and. ' i he facts .herein 'stated' `as follows; (1) Said newsp'aper is printed in the +newspaper -format and in column -and sheet form equivalent. in printed square inches (2) Said ne vspaper.is. a weekly and is distributed at least (3t'Said newspaper- has 50% •of its news columns devoted to news of local community which it .purports to' serve and: does not wholly duplicate any- other •made up entirely Of patents ,plate,matter and advertisements. (4). Said ed ,in and: near the miulicipality„ .which it purports to serve, has -'at least ofsY• new'spaperr a 23. day of 4-0 L CY!u''t.. �k1"(.4i- 1 Xr- til( 451D1a"'-( J too, os-- Q aotx u:.•-411O1-14Cri Ow?. towt. 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ORDINANCE AMENDINC ORDI NANCE NO. 1197, SETTING FORTH `.. - TERMS. AND CONDITIONS FOR THE INSTALLATION, MAINTENANCE AND OPERATION OF A BROADBAND TELECOMMUNICATIONS NETWORK (BTN) FOR THE TRANSMISSION OF CATV AND OTHER SERVICES, ELEC- TRICAL IMPULSES OF TELEVISION, RADIO AND OTHER INTELLIGENCES,. EITHER ANALOG OR DIGITAL, FOR SALE TO OR USE BY INHABITANTS OF THE CITY; SETTING FORTH TERMS AND. CONDITIONS; PROVID- ING FOR CITY REGULATION; ESTAB- LISHING A CITIZENS CABLE ADVI- SORY COMMITTEE. THE CITY COUNCIL OF THE CiTY OF ST. LOUIS PARK ORDAINS: Section 1. Ordinance No. 1197 is amend- ed to read as follows: Sec. 1. Definitions. In this ordinance the following terms, phrases, words, and their derivatives have the meanings giv- en. When not inconsistent with the con- text, words used in the present tense in- clude the future, words in the plural num- ber include the, singular number, and wordsin the singularnumber include the plural number. The word "shall" is al- ways mandatory and not merely directo- ry- (a) "City" means the City of St. Louis Park. (b) "Council" means the City Council of the City of St. Louis Park. (c) "Person" means any person, firm, partnership, association, corporation, company or organization. (d) "Public agency" means any gov- ernmental unit or political subdivision of the state of Minnesota, including school districts and other special purpose gov- ernmental bodies. le) "Non-profit agency" means any non-profit corporation or association, charitable organization, or otherorgani- zation not operated for profit. If "Subscriber''- means any person who receives service from a franchisee. (g) "CATV System". or ''broadband telecommunications network" means any wires, wave guides or other conductors, equipment or facilities designated, con- structed or used for the purpose of trans- mission of electrical impulses of televi- ion, radio and other signals either analog or digital, directly Or indirectly for sale or use by inhabitants of the city. :• Ih) "Installation" means the fixing for use or the putting in place in a room of the equipment necessary for reception of sig- nals from the CATV system, exclusive of a television or radio receiver. 1i) "Gross subscriber revenue" means all revenue received by the franchisee, its affiliates,parent organization, orsubsidi- aries, inconnection with the operation of the broadband: telecommunications net- work within the corporate limits of the city, including but not limited to:recefpts from service charges, installation and disconnect charges, advertising, channel '. leasing„ data, transmission), gen-grogram: charges, and rental 'income `from 'use ' of facilities. (j l "Duplex network" means a two- way communications network consisting of coaxial cables and amplifiers which can carry signals in two directions. (kl'"Dual cable network" means a network consistingofsimultaneously in- stalled duplicate trunk and distribution coaxial cables, each capable of two-way communications, fastened together or. otherwise connected and used for trans- mission and distribution of both digital and analog signals, including both televi- sion and radio.. • i1) "Shadow cables" mean the second cables in a "dual cable network." and means theabsence of all associated elec- tronic equipment and the second drop cables to subscribers required to activate and place into service the second cables of the "dual cable network". Im) "Pay TV" means origination or access cablecasting operations for which. a per -program or per -channel charge is made to subscribers. I n) "Commencement of service" oc- curs when sufficient distribution facilities have been placed in use to offer "full net- work service" to at least the number of subscribers specified in the franchise or- dinance. ' ' (o) ''Full network service" means sub- scriber ubscriberservices provided by the -franchi- see, including both the deliveryof broad- matt- signals and programming originated over the cable system, covered by the regular monthly charge paid by all sub- scribers, and also subscriber services provided by the franchisee for which a special charge made based on program orservice content or time of usage. ( p1 "Franchise" means the incorporat- ed terms of the franchise, franchise ordi- nance and acceptance agreement and all rights, powers, duties, obligations, and privileges under them. )q) Franchise ordinance" means the separate ordinance by which the fran- chise is granted to the franchisee. Irl ':'Franchisee" means all persons including, but not limited to, subsidiaries, - - parents, or affiliatecompanies, associa- tions or organizations having any rights, powers, priviteges, duties, liabilities or obligations, under this ordinance, and under the franchise ordinance, collective- ly called the "Franchise•', and also in- cludes alt persons having or claimingany title to or interestin the system, whether by reason of the franchiseitself directly. or by interestin a subsidiary; parent, or affiliate company, association or organi- zation or by any subcontract, transfer, assignment, mortgage securityagree- ment, management agreement, or oper- ating agreement, or whether otherwise arising or. created. Sec. 2. Franchise Required. After the effective date of this ordinance, no person shall establish, operate orcarry on the business of distributing to any person in the city any television signals, or radio signals or other intelligences, either ana- log or digital, by means of a broadband telecommunications network unless a franchise has first been obtained pursuant to the provisions of this ordinance, and unless such franchise is :in full force and effect. No person shall 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 on any:. tentative subdivision map approved by the city, any:, equipment or facilities for distributing any television signals or radio signals or other intelligences either analog or digi- tal over a broadband telecommunications network unless a franchise authorizing the useof the streets or properties or areas has first been obtained pursuant to the provisions of this ordinance,and un- less such franchise is in full force and et - Sec. 3. Significance of Franchise, Limi- tations. tai Authority Granted. A franchise to Construct,operate, and maintain a broad- band telecommunications network within the city shall be governed by the terms and conditions of his ordinance. A fran- chise grants ranchisegrants to the holder a nonexclusive right to construct, operate and maintain a broadband telecommunications network 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 and additions to thesystem. Upon the annexation of any. territory to the city, other than throure a governmental con- solidation process, -as to which the city makes no agreement, the franchise shall extend to the ter&cry so annexed; and all facilities owned, wtiaintained or operated by the franchisee (orated within,under or. over streets of the territory so annexed shall thereafter he subject to the fran- chise. - (b) Pole Space Obligation. A franchise shall not relieve the franchisee of any ob- ligation to obtain pole space from any department of thecity, a utility company, or from others iriaintainine poles in the streets. (c) Privileges Must Be Specified. No, privilege or exemption shall be inferred from the granting of any franchise unless it is specifically prescribed. Nothing in this ordinance shall be deemed to require the granting of a: franchise when in the opinion of the Connell it would not be in the public interest to do so. id) Privileges Subordinate. Any privi- lege claimed under a franchise in any street or other pantie property shall be subordinate to aqy lawful occupancy of the street or other( public property or to any present or future improvements such as sidewalks and roadway widening. le) Consent ie.Transfer. A franchise shall be a privilege to be held' in personal trust by the original recipient. It cannot be sold, transferred, leased, assigned, or dispesed`of, in whole or in part, either by. forced or involuntary sale, merger, con- solidation or othe wise, without the prior consent of the Cd�j+.nwcil expressed by reso- lution and then on under such conditions y c h s as may be prescribed. Any request for a transfer or assignment shall be made in writing and filed in the office of the city clerk at least 30.d sprior to the approval Y of any'transfer' _ ` assignment. as t. royal � g APP of a transfer or assignment will not be unreasonably withheld by the city. (1) Change of Control of Franchisee. Prior approval of the City Council shall be reouired where ownership or control of more than 30% of the right of control of the franchisee, of of a partner in a part- nership bolding a franchise, is acquired in " any manner by a person or group of per- sons acting in concert, none of whom al- ready own or control 30% or more of such right of control, ' tgularly or collectively. By its acceptance^ of this franchise, the franchisee and aby partners of a franchi- see specifically .ei ant and agree that any sax& airapinition occuring without prior approval of the City Council shall consti- tute a violation offhis franchise. )g1 Previous' Rights Abandoned. A franchise shalt he in lieu of any and all other rights, priyiteges, powers, immuni- ties, and authorities owned; possessed, controlled, or exercisable by a franchisee or any successor pertaining to the con- struction, operation, or maintenance of a cable communications system in the city. The acceptance of a franchise shall oper- ate, as between franchisee and the city, as an abandonment of any and all of such rights, privileges," powers, 'immunities, and authorities within the city. All con- struction, operation and maintenance by the franchisee of any cable system in the city shall be under the franchise and not under any other right, privilege; power, immunity, or authority. (h) Subject to Other Rules and Regula- tions. Any franchise shall be subject to all applicable rules and regulations of the FCC and of any State agency having juris- diction over the operations of the franchi- see. In the eveni}that the FCC or any state agency having jurisdiction should modify their rules and regulations relating to local regulatory relationships, the city will amend this ordinance within six months of the effective date of the modifi- cation, to be *conformance with the modification. Sec. 4. Duration of Franchise. Upon fil- ing of the proper acceptance by the fran- chisee, the bond -and the required insur- ance, the franchise shall take effect as of the effective date of the franchise ordi- nance and shall continue in full force and effect for a tern) of15 years. Sec. 5. Acceptance. (a) ProcedOre. :a frochise shall be unconditionally ecceptedpby the franchi- see by written instrument executed 'and acknowledged by the franchisee and filed with the city clerk within 20 days after the'. granting of a franchise. The written in- strument :shall express the unqualified acceptance of the franchise and its terms, conditions, and provisions. The franchi- see shall agree,* the instrument to abide by, to observe and perform it, and shall declare that its statements and recitals are correct and that the franchisee has made and doe$ make the agreements, statements and admissions recited in the franchise. lb)`Franchisae to Have No Recourse. Except as expressly provided in this fran- chise, the franchiseeshall have no re- course against the for any loss, cost, expense or damage arising out of the pro- visions or requirements of this franchise or because of the enforcement of the terms of the franchise by the city nor for thefailure of the city.to have the authori- ty to grant all or any part of this fran- chise. (c) Acceptance of Power and Authori- ty of City. The franchisee expressly ac- knowledges that in accepting, this fran chise,it has relied upon its own investiga- tion and understanding of the power and authority of the city to grant this fran- chise. Id) Inducements Not Offered. The franchiseeby acceptance- of this fran- chise acknowledges that it not been induced to eaten into this franchise by any understanding or promise or other state- ment, whether verbal or written; by or on behalf of : the city concerning any term or condition of this franchise that is not in- cluded in this ordinance. (e) Franchisee' Accepts Terms of Franchise. The. franchisee acknowledges by the acceptance of this franchise that it has carefully read its terms and condi- tions and it is willingto and does accept all of the risks of the meaning of such erms and conditions. Sec. 6. Franchise Payment. (a) Payment *0 the City. A franchisee' shall pay to the city an annual franchise ". fee in an amount equal to five percent of the annual gross subscriber revenues re- ' ceived by the franchisee for services pro- vided within the city for the use of the sit, ants and ether fatalities of the city in the operation of the broadband telecom- munications network and for municipal supervision. (b) Method of Computation; Interest. Bales taxes or other taxes levied directly on a per -subscription basis and collected by the franchisee shall be' deducted from the local gross operating revenues before computation of sums due the city is made. The franchise payment shall be in addi- tion to any other payment owed to the city by the franchisee. Payments due the city under the terms of this ordinance shall be computed quarterly as of September 30, December 31, March 31, and June 30 for the preceding quarter and shall be paid on or before the thirtieth calendar day from each saidcomputation date at the.. office of the city treasurer during his regular business hours. The payments shall begin as of the effective date of the franchise and the initial payment shall be due on the date of the first quarterly payment occur- ring ccurring more than 90 days after thefranchi- see commences service. The city shall be furnished a statement with each pay- ment, certified as correct by the franchi- see reflecting the total amounts of gross subscriber revenues, and the above charges, deductions and computations, for the three months' payment period covered by the payment. Once each year the franchisee shall furnish the city with statement by a certified public accoun- tant reflecting the total amount of gross subscriber revenue and thecalculation of the payments due to thecity. In the event that any payment is not made as required, interest on the amount due, as determined from the gross operat- ing receipts computed by a public accoun- tant, shall accrue from that date at the. annual rate of 12 percent. The amounts designated in this section may be amend- ed no more than..once each year by the City Council, consistent with increased costs for municipal facilities and supervi- sion. (c) Rights of Recomputation. No ac- ceptance of any payment shall be con- strued as a release or as an accord and satisfaction of any claim the city may have for further or additional sums paya- ble as a franchise fee under this ordi- nance or for the performance of any other. obligation.` Sec. 7. Security for Performance. (a) Performance Bond. The franchisee shall, concurrently with its acceptance of this franchise, file with the city and at all times thereafter maintain in full force and effect for the term of this franchise or any renewal, at franchisee's sole ex- pense, a corporate surety bond in a re- sponsible company licensed to do busi- ness in the state of Minnesota in the amount of $300,000 renewable annually, and conditioned upon the faithful perfor- mance of franchisee, and upon the further condition that in the event franchisee shall fail to comply with any law, ordi- nance or regulation governing the fran- chise, thele shall he remoor/ Lily and severally from the principal and sure- ty of the bond any damages or loss suf- fered by the city as a result, including the full amount of any cbmpensation, indem- nification, or cost of removal or abandon- ment or any property of the franchisee, plus a reasonable allowance for attor- neys' fees ttorneys'fees and costs, up to the full amount of the bond, this condition to be a continu- ing obligation for the duration of the fran- chise and any renewal and until the fran- chisee has liquidated all of its obligations with the citythat may arise from the ac- ceptance of this franchisee or renewal by the franchisee or from its exercise of any privilege or right granted by the fran- chise. The bond shall provide that at least 30 days' prior written notice of either in- tention not to renew, cancellation or ma- terial change in the bond shall be given to the city by filing the same with the city clerk. Notwithstanding above provisions of this subsection, the City Council may in its sole discretion waive the bond or re- duce the required amount after five years of operation of a system under the fran- chise, by the franchisee, ''.s successors or assigns, which, in the sole opinion of the City Council has been satisfactory. (b) Delays in Performance. The bond required in this section shall provide that with 15 days prior written notice to the franchisee, the city may recover against the surety the sums provided for failure to complete construction in accordance with any provision. of Sec. 13, System In- stallation Schedule. (c) Rights Reserved to City. The rights reserved by the city with respect to the bond are in addition to allother: rights the city may have under this ordinance or any other law. Sec. 8. Liability Insurance and Indem- nification. ... (a) Public Liability Insurance. (1)A.franchisee shall immediately. upon the award of a franchise, furnish to the city, and atall times during the exist- ence.ofthe franchise, maintain in full: force; and effect, at its own cost and ex- pense, the following insurance: (a) for claims arising under any work- men's compensation, employees liability, or any similar employee benefit acts: (b) for claims because of bodily injury, sickness, disease or death of any person or persons other than the .franchisee's employees, and for claims of damage to or destruction of property of others in- cluding loss of use. (2) Such insurance shall be written for amounts not less than the following as respect subparagraph (a) above: Workmen's compensation — statu- tory; Employee's liability—$100,000 each occurrence. and as respects subparagraph (b) above: Bodily injury and property damage with a combined single limit of liabil- ity of — $1,000,000 each occurrence. : or bodily injury General and automobile $5,- 000,000 each person; General and automobile — $1,- 000,000 each occurrence. property damage General and automobile -: $500,000 each occurrence; General 15,000,000 aggregate. (3) Theinsurance referred to in sub- paragraph ubparagraph (b) above shall be written un- der the comprehensive general and com- prehensive automobile omprehensiveautomobile liability policy forms, including coverage for all owned, hired, and non -owned automobiles. The franchisee may at its option provide the limits of liability as set out above by a combination of the above described policy forms, and an umbrellaexcess liability policy. (4) The policy or policies shall afford the same limits of .liability as set out :. above for liability assumed under con- tract. (5) All responsibility for payment of Page 48 - MIDWEEK SUN',— Thurs., Aug. 23, 1973. ;..? i,f;1 any sums resulting fro* any deductible provision, corridor, or self-insured reten- tion conditions of the policy or policies shall remain with the franchisee. (6) The policy or policies shall waive any and all governmental immunity as a defense in any action brought against the insured. 17) Approval of the insurance by the city shall not in any way relieve or de crease the liability of the franchisee, and it is expressly understoodthat the city does not in any way represent that the above specified insurance or limits of lia- bility are sufficient or adequate to protect the franchisee's interest or liabilities. (8) Evidenceof the above insurance in the form of insurance certificatesshall be furnished the city clerk by the franchisee. H there are special limitations on the in- surance policy, then a copy of the policy exclusions must be submitted with the insurance certificate.Proof of insurance shall be submitted directly to the city clerk for review and approval by the city attorney. The franchisee shall not begin. anyactivities until the city has reviewed and approved the insurance certificates andhasso notified the franchisee directly in writing. (9) The policies shall name the city, its officers, boards, commissions, " agents, employees and appointees as additional insureds and shall contain a provision that a written notice of cancellation or reduc- tion in coverage of the policy shall be de- livered tothe city 30 days in advance of the effective date. H. the insurance is pro- vided by a policy which also covers the. franchisee oranyother entity or person other than those above named then the policy shall contain an endorsement con- cerning grossliability, which shall be subject to approval by the cityattorney. (b) Review of Coverage. The city shall` annually review the above insurance pro- visions; and, ifit is determined that the insurance coverage is inadequate, addi- tional insurance may be required as is:. reasonably determined by the city and shall be provided by the franchisee. ( c ) Indemnification. ,The franchisee shall indemnify .and holdharmless the city and, its agents and employees from and against all claims, damages, losses and expenses, including attorneys' fees, which they may suffer or for which they may be held liable - arisingout of or re- sulting from the assertion against them of any claims, debts or obligations in conse- quence of the granting of the franchise by thecity or theoperation of the system by:. the franchisee, its employees, agents, or subcontractors. The city disclaims all liability arising out of the utilization of the public access channel and the franchi, see agrees to indemnify and hold the city harmless for any damage that may result from such a claim. Sec. 9. System Capability; Facilities. (a System Channel Carriage Capabilt ty. The franchisee shall install a "dual: cable network" having a minimum band- width capability of five to 300 MHz. At the option of the franchisee, the second ca- bles may be "shadow cables." Whenever a reverse or feedback circuit is routed, througha subscriber's premises, it shall be connected so as to permit subscriber notification and deactivation. (b) Reverse Signal Capability (Duplex Network). The franchisee shall provide in the original construction a duplex net- work capable of reverse direction signals from all drops. This carriage capability shall be at least in accordance with the requirements of the Federal Communica tions Commission's :3rd Report and Or.. der. (c) Designated Service. Districts. The a franchisee shall design and construct the system in a hub configuration so as to permit the discrete distribution of Class II, Class III,: and Class IV cable television channelswithin atleast five designated service districts; the boundaries on which shall be approved by the City Council. (d) Upgrading of Facilities„Equipment and Service. The franchisee shall upgrade its facilities, equipment and service so that its network is as advanced as the current state of technology with field - proven equipment will allow. Failure of the franchisee to install additional chan- nel capacity han-nel-capacity as required by the Federal Communications Commission shall be a breach of the franchise ordinance- . (e) Emergency Power. When, in the opinion of the city, it becomes economi catty and technically feasible, the fran- chisee shall provide emergency and auto- matic standby powerfor the studio, head- end and trunklines that will enable emer- gency use of the facilities as provided in subsection (g) of this section. (1) Business Office- The franchisee shall maintain an office in the City at a location convenient to the public. (g) Emergency Capability and Use: The franchisee shall, in the case of any emergency or disaster, make its entire system available without charge to the city orto any other governmental or civil defense agency that the city shall desig- nate. The esignate.The franchisee shall incorporate into itsfacilities 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 simul- taneously.The franchisee shall provide in a location to be designated by the city, all equipment necessary for use of the emer- gency alert system. (h) Studio Facilities; Personnel. (1) The franchisee shall provide a full color capable studio within St. Louis Park. Thisstudio shall be constructed to enable preparation and playback of simul- taneous live and/or taped or filmed pro- gramming inseparate: facilities within the studio and that at least one studio shall provide for audience participation. A franchisee's plans for its business of- fice and cotor studio to be constructed within the city shall be submitted to the city for approval. These plans shall in- clude such items as studio size, accessi bility to the public, type of facilities, hours of operation and estimated con- struction time. (2) The franchisee shall provide a color capable mobile origination facility, sub- ject to ubjectto approval of the city, with capabili- ty for preparation and playback of either live or taped programming for use within the city.',... (3 ( The franchisee shall, upon request and at no charge provide the production facilities and personnel reasonably neces- sary to assistin the preparation and transmission of governmental and educa- tional programs. (f) Continuous Operation. The network shall be designed and rated. for 24 -hour -a - day continuous operation. (j) Computer Access. The franchisee shall, when it becomes technically and. economically viable, provide computer access to all subscribers. Sec. 10. Quality of Reception; Techni- cal Standards- The broadband telecom- munications network shall meet the fol- lowing standards, subject to future modification by the city including modi- fication by standards adopted by the Fed- eral Communications Commission that are more stringent than those established by the city. • (a) Quality of Reception. The network shall produce a picture upon any subscri- ber's television screen inblack and white or color .(provided the subscriber's televi- sion set is” capable of producing a color. picture) that is undistorted and reasona- bly free from easona-blyfreefrom ghost images, without vis- ual material degradation in quality within the .limitations imposed by thetechnicalL. state of the art, provided that the subscri- ber's television receiver is in good repair and -properly adjusted. The network shall transmit or distribute signals of adequate strength to produce good pictures with good sound to all subscribers having tele- vision receivers in ele-visionreceiversin good repair, without causing objectionable cross -modulation in the cables or interfering with other electrical orelectronic networks or with the reception of other television or radio receivers in the area not connected to the network. (b) Technical Definitions. (1) "Cable television channel" means a frequency band 6MHz in width within which a standardtelevision broadcast signal is delivered by cable to a subscri- ber terminal. (2) "Class I cable television channel" means a signaling path provided by a ca- ble:television system to relay to subscri- ber terminals television broadcast pro- grams that are received off -the -air or that are obtained by microwaveor by di- rect connection to a television broadcast. station. - (3) "Class II cable, television channel" means a signaling path provided by a ca- ble television system to deliver to sub- scriber ubscriber terminals television signals that are intended for reception, by a: television broadcast receiver without theuse of an auxiliary decoding device and which are not involved in a broadcast transmission path. (4) "Class III cable television channel" means a signaling path providedby a ca- ble television . system to deliver to sub- scriber terminals ubscriberterminals signals that are intend- ed 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" means a signaling path provided by a ca- ble television system to transmit signals of anytype from a subscriber terminal to another point in the cable television sys- (6) "Channelfrequency response" means within a cable television channel, the relationship as measured at a subscri- ber terminal between amplitude and fre- quency of a constant -amplitude input sig - (7) "Network noise" means undesired and/or fluctuating disturbances within a cable television 'channel, :exclusive of undesired signals of discreet frequency, which degrade the reproduction of the desired signal and which are due to modu- lation processes, thermal effects and oth- er noise producing effects, not including hum Network noise is specifiedin terms of its rms voltage or its mean power level as measured in a 4 MHz bandwidth be- tween 1.25 and 5.25 MHz above the lower channelboundary of a broadband tele- communications network. (8) "Subscriber terminal" means the broadband telecommunications network 75 ohm cable terminal to whichthesub- scriber's ubscriber's equipment is connected. Sepa- rate terminals may be provided for deliv- ery of cable television signals, FM broad cast or other signals of differing classifi- cations. ' (9) "Terminal isolation" means at any subscriber terminal, the attenuation be- tween that terminal and any other sub- scriber terminal in that network. (10) "Visual signal levelmeans the rms voltage produced by the visual signal during the transmission of synchronizing. pulses. (11) "BTN network channel capacity" means highest total number of cable tele- vision channels on which television sig- nals from separate sources may be deliv- ered downstream simultaneously to every subscriber in the network. Thenetwork may have additional channel capacity for specialized or discrete purposes, but the technical performance specified shall not be materially degraded as a result. (c) Technical Standards. The following requirements applyto the broadband tele- communications network performance for Class I, Class II and 6 MHz. Discrete Video Cable Television Channels, as mea- sured at any equivalent subscriber termi- nal with a matched termination. They also apply to each of the cabletelevision channels in which signals picked off -air are deiivered to the terminals. The measurements shall not include the re- ceiver converter if such is required at the subscriber's receiver for any of the chan- nels of required carriage. (1) The frequency boundaries of cable television channels delivered to subscri- ber 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 that it is technically feasible. (2) The frequency of the visual carriers shall be maintained L25 MHz P25 KHz above the lower boundary of the cable: television channel, upto the receiving terminals, exclusiveof any receiver at- tachments, such as channel. converters except, for the local VHF channels which shall he carried synchronously to the ex tent it is technically feasible. (3) The frequency of the aural carrier shall be 4-5 MHz + 1 KHz above the fre- quency 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 pic- ture carrier frequency on each channel shall - not be less. than 1000 UV (microvolts) across a 75 ohms terminat ing impedance andshall be maintained within the following limitsover the entire ambient temperature range of -40 degrees F to plus 120 degrees F and with varia- tions 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 chan- nel, 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 sig- nal level. (6) The peak -to -peak variation in visual signal level caused by undesired low fre- quency disturbances (hum or repetitive transients) generated within the system or by inadequate low frequency response shall not exceed 3% 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 sig- nal operating on a proper offset assign- ment 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.. subscri- bers within the Grade B contour for that signal, or (b) each signal which is first picked up within its predicted Grade B contour, or .. (c) any local origination channel. (8) The ratio of visual signal level to the rms- amplitude of any coherent dis- turbances, - such as inter -modulation prod- ucts, "or roducts,"or discrete -frequency interfering signals, not operating on proper offset assignments shall not be less than 46 deci- bels. (9) The terminal isolation provided each subscriber shall not be less than 30 decibels, exceptthat the isolation be- tween separate television and FM broad- cast terminals for.. the same .subscriber shall not be less than 15 decibels. (10) Radiation fromthe broadband te- lecommunications network shall be limit- ':. ed as follows:.. Frequencies Up to and includ- ing 54 MHz 15 100 Over 54 up to and including 216 MHz Limit : Distance (uV/m) (feet) 20 10 Over 216 MHz 15 100 (11) All echoes originating within the network shall meet the nonvisibility cri- teria developed by P. Mertz of the Bell Telephone Company, i.e., ;shall not be greaterthan.-36db. for echoes dispersed more than 2:microseconds. For shorter term dispersed echoes, the network (including headend terminal) shall follow. the "Mertz Curve",>merging to a "K" pulse deformation not exceeding 4% of the total system, This latter measure- ment shall easurementshall not include the "K" response of the test modulator and demodulator (if used) i.e. shall be"network" "K" re- sponse. 2T pulse or equivalent measure- ment techniques shall be used for these measurements. All unused subscriber tap'. ports may be terminated during network measurement. (12) Network h -e uenc response as. measured at any subscriber terminal shall not vary more than + 2 db over the 6MHz bandwidth of any cable' television channel or corresponding portion of the FM and mid or upper band spectrums if utilized. (13) 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 levet and'at.-least.57 db below the normal transniisSionleveles measured at any point of the network trunk (network cross -modulation -specifi- cations based on NCTA. standard ). (14) Subscriber installations shall con- form where applicable to current rele- vant provisions of the National : Electric Code, current edition; (15) 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 perfor- mance in any area to resolve signal quali- ty or interference problems. (d) Performance Tests and Certifica-. tion. _ (1)Thefranchiseeshall be responsible for insuring that the network is designed, installed, and operated in a manner which fully complies with the technical stand- ards of this ordinance. (2) Thefranchisee shall conduct, as set forth by the FCC in their 3rd. Report and Order, complete performance tests of the network at least once each calendar year (at intervals not to exceed 14 months) and the franchisee shall show, at any other time, upon reasonable request by the city, that the network does, in fact, comply with thetechnical standards: The franchi- - see shall file with the city a certificate detailing the test standards and the re- sults of the tests. The performance tests will be directed at determining the extent to which the network complies with the technical standards set forthin thisordi- nance, and at the discretion ofthe city shall be conducted in the presence of a technical representative appointed by the city and compensated by the franchisee. The tests shall be made on each cable tel- evision channel in the network, and shall include measurements made at the ex- tremities of at least two trunk and three taps selected at random, at least one of which is representative of aterminal most distant from the network input in, terms of cable distance. A statement of the qualifications of the person perform- ing the test and a description of the in- struments and procedures used shall n-strumentsandproceduresusedshall be attached tothe test results filed with the city. (3) After reviewingthe certificates of compliance required P q paragraph (2) the citymayrequirethatadditionalmeasure- mentsbemade, -or that a clarifying ex- planation be supplied. (e) Alternate. Approach. If the franchi- see desires to distribute signals by using multiple' cable 'techniques or specialized receivingdevices which, because of the basic design, cannot comply with one or more of the technical standards set forth in paragraph (c) of this section, he may apply tothe city for permission to operate with such equipment provided that an adequate showing is made which estab- lishes that the subscribers are provided an equivalent quality of service. The bur- den is on the franchisee for full technical proof of equivalent performance. (f) Measurements-. Used in Perfor- mance Tests. (1)' Measurements : made in : tests to demonstrate continuous conformity with the performance requirements set forth in these technical standards shall be made under conditions which reflect net- work performance:"during normal opera- tions, including the effect of any present or future microwave relay operated in the Community Antenna Relay Service (CARS) intervening between pickup an- tenna and the broadband telecommunica- tions network and: including the effects of any microwave local distribution service which may'u*eaa pani.+oirtiisnettvmdk. Special signals inserted in a cable tele- vision channel for measurement purposes shall be operated at levels: approximating thoseused for normal operation. 'Pilot tones, auxiliary signals, and non -televi- sion signals normally carried on the net- work shall be operated at normal levels. The following test procedures are includ- ed as a guide. There are several recog-