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HomeMy WebLinkAbout1670-86 - ADMIN Ordinance - City Council - 1986/01/06(January 6, 1986, adopted) (December 2, 1985, first reading) r ORDINANCE NO. 1670-86 AN ORDINANCE AMENDING THE ST. LOUIS PARK MUNICIPAL CODE, PART 7, CABLE TELEVISION THE CITY OF ST. LOUIS PARK DOES ORDAIN: Section 1. The following sections of the St. Louis Park Ordinance Code are amended as attached: Amendments: Index, and Sections 9-701(9, 15, 16, 17, 18); 9-703(5); 9-704; 9-709 (1, 6, 8c); 9-710(1-6); 9-716(5,7,9,10); 9-721(1,2,3,5,6,10); 9-751; 9-752. Additions: Deletions: Renumbered: i Sections- 9-703 (7•, 8)-; 9 -710•( -3h, -i, -j --s)-; 9-711(1-10); 9-713(8-10); 9-714(8,9); 9-716(2c3 & 31-8); 9-716(7f, 10a -h, 16a -g, 17a -i); 9-717(5); 9-718(3,4,5); 9-720(1,2,3); 9-721(7,8,9); 9-722. Sections 9-703(6,7); 9-711(1-4); 9-753; 9-754; 9-755. From 9-703(7,8) 9 -710(3h -p) 9-717(5,6) 9-720 9-720(7) 9-721 - 726 To 9-703(6,7) 9 -710(3k -q) 9-717(6,7) 9-721 9-721(10) 9-723 - 728 CITY OF ST. LOUIS PARK CABLE COMMUNICATIONS FRANCHISE PAST AMENDMENTS TO CABLE TV ORDINANCE: Ord. No. Date 2235 8/20/73 Z236 8/20/73 1247 10/9/73 1303 11/3/75 1397 12/19/77 1475 9/2/80 1572 10/4/82 1646-85 1/21/85 1670-86 1/6/86 As Amended January 6, 1986 by Ordinance 1670-86 (FORMER PAGES 194 through 238 deleted and replaced by the FOLLOWING PAGES A-2 through A-120, by Ord.1670, 1/6/86) PART 7 - Cable Television INDEX Section 9-701. Definitions Page 7 (1) City (2) Council (3) Person (4) Public agency (5) Nonprofit agency (6) Subscriber (7) CATV System (8) Installation (9) Gross Subscriber revenue (10) Duplex network (11) Dual cable network (12) Shadow cables (13) Pay TV (14) Commencement of service (15) Cable Service (16) Franchise (17) Franchise Ordinance (18) Franchisee Page 8 Page 9 Section 9-702. Franchise Required Page 11 Section 9-703. Significance of Franchise; (1) Authority Granted (2) Pole Space Obligation (3) Privileges Must Be Specified (4) Privileges Subordinate ' Page 13 (5) Consent to Transfer (6) Previous Right Abandoned (7) Subject to Other Rules and Regulations . . . Page 14 (8) Certification by State of Minnesota Section 9-704. Duration of Franchise Page 16 Section 9-705. Acceptance (Repealed) Page 16 Section 9-706. Franchise Payment Page 17 '(1) Payment to the City (2) Method of Computation; Interest (3) Rights of Recomputation Page 18 Limitations Page 12 A2- r f i Section 9-707. Security for Performance Page 19 (1) Performance Bond (2) Delays in Performance Page 20 (3) Rights Reserved to City Section 9-708. Liability Insurance and Indemnification Page 21 (1) Public Liability Insurance (2) Review of Coverage Page 23 (3) Indemnification Section 9-709. System Capability; Facilities . . . Page 25 (1) System Channel Carriage Capability (2) Reverse Signal Capability (Duplex Network) (3) Designated Service Districts Page 26 (4) Upgrading of Facilities, Equipment and Service (5) Emergency Power (6) Business Office (7) Emergency Capability_and Use Page__27 (8) Studio Facilities; Personnel (9) Continuous Operation Page 28 (10) Computer Access Section 9-710. Quality of Reception; Technical Standards Page 29 (1) Quality of Reception (2) Technical Definitions (3) Technical Standards Page 32 (4) Performance Tests and Certification Page 36 (5) Alternate Approach Page 38 (6) Measurements Used in Performance Tests Section 9-711. Channels to be Provided by Franchisee Page 43 (1) Specially Designated Public, Educational, Governmental and Leased Access Channels (2) Charges for Use of -Public Access Channels (3) Channel Capacity Expansion Page 44 (4) Access Channel Rules Page 45 (5) Special Service Subscribers (6) Reduction of Channel Capacity (7) Access Equipment Available Page 46 (8) Additional Channels for Commerical Use (9) Local Origination Programming Page 47 (10) Basic Cable Service Channels A3- Section 9-712. Inter -Connection Page 49 (1) Required for Network (2) Required for Educational and Governmental Use Channels Section 9-713. System Installation Schedule Page 51 (1) Permit Application (2) Commencement of Construction Page 52 (3) Commencement of Service (4) Complete Service (5) Local -Origination Programming (6) Delays and Extensions of Time Page 53 (7) Failure to Complete (8) System Upgrade and Rebuild Page 54 (9) Duty Regarding Franchisee's Facilities Section 9-714. Fees, Rates and Charges Page 55 (1) Basis; Approval (2) Changes in Rates, Fees or Charges (3) Charge for Converter Page 57 (4) Disconnection (5) Per -Program or Per -Channel Charges Page 58 (6) Judicial Review (7) Court Affirmation (8) Notice of Rate Change Page 59 (9) Current Rates Page 60 Section 9-715. Conditions of Street Occupancy. . . . Page 61 (1) Approval of Proposed Construction (2) Excavation Permits (3) Changes Required by Public Improvements (4) Facilities Not to be Hazardous or Interfere (5) Method of Installation Page 62 (6) Protection of Facilities Page 63 (7) Notice of City Improvements (8) Compliance with Codes Page 64 (9) Moving of Wires (10) Tree Trimming (11) Record of Equipment and Facilities to be Maintained Page 65 Section 9-716. Operation of the Franchise/Consumer Protection Page 66 (1) Consumer Complaints (2) Repairs and Maintenance (3) Reports, Books and Records of Franchisee . Page 67 (4) Rules of the Franchisee Page 70 A4- 1 1 a r r (5) Approval of Service Contract Page 71 (6) Filing Communications with Regulatory Agencies (7) Plan Filed Page 72 (8) Franchisee Assistance in Developing Public Uses (9) Preferential or Discriminatory Practices Prohibited Pg. 73 (10) Subscriber Privacy Page 74 (11) Ownership Interest Prohibited Page 78 (12) Service Continuation, Notification of Subscribers (13) Removal of Roof Top Antennae Page 79 (14) Sale or Service of TV Receivers (15) Use by Political Candidates (16) Periodic Evaluation and Renegotiation Sessions...Page 80 (17) Annual Opinion Survey Page 83 Section 9-717. Rights Reserved to the City; Resolution of Disputes Page 86 (1) No Impairment of Eminent Domain (2) Franchisee Agrees to City's Rights (3) City's Right of Intervention (4) Powers of the City (5) Administration of Franchise (6) Resolution of Disputes and Appeal Procedures.Page 87 (7) City's Transfer of Functions Section 9-718. Enforcement Page 88 (1) Failure to Enforce Provisions (2) Contravention of Franchise (3) Letter of Credit (4) Penalties Page 89 (5) Procedures for Imposition of Penalties . . ▪ Page 91 Section 9-719. Right of Amendment Reserved to City • Page 94 Section 9-720. Renewal Page 95 (1) Renewal Process. (2) Renewal Proposal Page 97 (3) Preliminary Capital Commitment Agreements. • Page 98 Section 9-721. Expiration or Revocation of -FranchisePage 100 (1) Expiration; Extended Operation (2) Grounds for Revocation (3) Procedure Prior to Revocation Page 101 (4) Injunctive Relief (5) Right of City to Purchase; Disposition of Facilities Page 102 (6) Transaction Affecting Ownership or Control of Franchise Facilities p5- (7) Sale or Transfer of Franchise Page 104 (8) City Right to Purchase System Upon Receipt by Grantee of a Bona Fide Offer Page 106 (9) Procedures for Exercise of First Right fo Refusal. Pg 109 (10) Restoration of Property Page 110 Section 9-722. Abandonment Page 111 Section 9-723. Unauthorized Connection Page 112 Section 9-724. Citizens Cable Advisory Committee. . Page 113 (1) Composition (2) Purpose - -- Section 9-725. Applications for a Franchise Page 114 Section 9-726. Publication Costs Page 116 Section 9-727. Severability Page 117 Section 9-728. Short Title Page 118 Section 9-751. Purposes Page 119 Section 9-752. Grant of Franchise Page 120 (Index amended by Ord. 1670-86, 1/6/86) Section 9-701. Definitions. In this ordinance the following terms, phrases, words, and their derivations 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. (1) "City" means the City of St. Louis Park. (2) "Council" means the City council of the City of St. Louis Park. (3) "Person" means any person, firm, partnership, asso- ciation, corporation, company or organization. (4) "Public agency" means any governmental unit or political subdivision of the state of Minnesota, including school districts and other special purpose governmental bodies. (5) "Non-profit agency" means any non-profit corporation or association, charitable organization, or other organization not operated for profit. (6) "Subscriber" means any person who receives service from a Franchisee. (7) "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 147- Section 9-701 for sale or use by inhabitants of the City. (8) "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. (9) "Gross subscriber revenue" means all revenues derived in connection with the operation of the CATV System directly or indirectly by Franchisee, its affiliates, subsidiaries, parent or any other person in which Franchisee, as Franchisee of this Franchise, has a financial interest of five percent (5%) or more. (Sec. 9-701(a) Amended by Ord. 1303, November 3, 1975). (Sec. 9-701(9) amended by Ord. 1670, 1/6/86) (10) "Duplex network" means a two-way communications network consisting of coaxial cables and amplifiers which can carry signals in two directions. (11) "Dual cable network" means a network consisting of simultaneously installed—duplicate 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. (12) "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." A8 - Section 9-701(7) cont. (13) "Pay TV" means origination or access cablecasting opera- tions for which a per -program -or per -channel charge is made to subscribers. (14) "Commencement of Service" occurs when sufficient distri- bution facilities have been installed so as to make Cable Service available to at least the number of subscribers specified in the Franchise Ordinance, actual operations being subsequent to receipt of certificate of compliance from the FCC. (15) "Cable Service" means subscriber services provided by the Franchisee, including, at the subscriber's election, 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. (Subsection 15 amended by Ord. 1670, 1/6/86) (16) "Franchise" means the incorporated terms of this Cable Regulation Ordinance, the Cable Television Granting Ordinance, the acceptance agreement and all rights, powers, duties, obliga- tions, and privileges under them. (Subsection 16 amended by Ord. 1670, 1/6/86) (17) "Franchise Ordinance" means the Cable Television Granting Ordinance, a separate ordinance by which the Franchise is granted to the Franchisee. (Subs. 17, amended by Ord. 1670, 1/6/86) (18) "Franchisee" means all persons including, but not limited to, subsidiaries, parents, or affiliate companies, asso- ciations or organizations having any rights, powers, privileges, R9- Section 9-701(13) 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 CATV 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 sub- contract, transfer, assignment, mortgage security agreement, management agreement, or operating agreement, or whether other- wise arising or created. (Subsection 18 amended by Ord. 1670, 1/6/86) R10- Section 9-701(18) cont. 1 1 a Section 9-702. 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 tele- vision signals, or radio signals or other intelligences, either analog 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 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. All- Section 9-702 Section 9-703. Significance of Franchise; Limitations. (1) 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 ordi- nance. 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. (2) Pole Space Obligation. A franchise shall not relieve the Franchisee of any obligation to obtain pole space from any department of the City, a utility company, or from others main- taining poles in the streets. (3) 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 Council it would not be in the public interest to do so. Al2- Section 9-703 r r (4) Privileges Subordinate. Any privilege claimed under a franchise in any street -or- other public property shall be subor- dinate to any lawful occupancy of the street or other public pro- perty or to any present or future improvements such as sidewalks and roadway widening. (5) Consent to Transfer. A franchise shall be a privilege to be held in personal trust by the original recipeint. It can- not 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 in exercise of or pursuant to the provisions of Sections 9-721(7), 9-721(8) and 9-721(9) of this Franchise and under such conditions as may be prescribed. Any amendment of this Franchise in conjunction with the approval of a transfer of ownership request shall require the consent of Franchisee prior to such amendment taking effect. 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. (Subsection 5 cvnended by Ord. 1670, 1/6/86) (6) Previous Rights 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, A13- Section 9-703(4) 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, immu- nity or authority. (Former Subsection 6 deleted by Ord. 1670, 1/6/86) (7) Subject to Other Rules and Regulations. Any Franchisee and City shall conform to all state laws and rules regarding cable communications not later than one year after they become effective, unless otherwise stated. Franchisee and City shall conform with all federal laws and regulations regarding cable communications as they become effective. Franchisee shall also conform with all City ordinances, in addition to the Franchise ordinance; resolutions, rules and regulations heretofore or hereafter adopted or established during the entire term of the Franchise. This Franchise complies with all requirements of the Minnesota franchising standards set forth in Minnesota Statutes and all statutes, rules, regulations and other laws relating to the content and grant of this Franchise. (Former Subsection 7 deleted by Ord. 1670, 1/6/86) (8) Certification by State of Minnesota. At City's elec- tion, the Franchise shall cease to be in force and effect if Franchisee fails to obtain certification of this Franchise by the State of Minnesota pursuant to Minnesota Statutes Section 238.085 (Subsections 7 & 8 added by Ord. 1670, 1/6/86) R14 - Section 9-703(6) cont. 1 f or any successor law thereto, provided, however, that Franchisee may operate its CATV System while the certification, if con- cerning a franchise extension or renewal, is under review or appeal. R15- Section 9-703(8) cont. Section 9-704. 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. Any renewal of this Franchise shall be limited to a term of not more than fifteen (15) years. (Sec. 9-704 amended by Ord. 1670, 1`6%86) (Sec. 9-705 repealed by Ord. 1303, November 3, 1975). R16 - Section 9-704 1 1 1 r r Section 9-706. Franchise Payment. (1) 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 revenue 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. (2) Method of Computation; Interest. Sales taxes or other taxes levied directly on a per -subscriber 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, March 31, and June 30 for the pre- ceding quarter and date of the first quarterly payment occurring more than 90 days after the Franchisee commences service. The City shall be 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. On or before April 30 of each year the franchise shall furnish the City with a statement reflecting the total amount of gross subscriber revenue in St. Louis Park and the calculation of the payments due to the City, which statement has been prepared B17- Section 9-706 and certified by an independent certified public accountant in accordance with generally accepted auditing standards. 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. (Sec. 9-706(2) amended by Ord. 1475, September 2, 1980). (3) 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 per- formance of any other obligation. (118 - Section 9-706(2) r r Section 9-707. Security for Performance. (1) Performance Bond. The Franchise shall, prior to the commencement of any physical construction, 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 Minnesota 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 regu- lation governing the Franchise, there shall be recoverable jointly and severally ffom the principal—and-surety of—the bond of 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 obli- gations 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 019- Section 9-707 clerk.. The bond as initially filed shall be in the amount of 0 000. One year after completion of construction of the $30 , system, the bond shall be reduced to $50,000. Notwithstandingts Council may in 1 above provisions of this subsection, the City amount sole discretion waive the bond or reduce the required he Franchise, by t after five years _of_operation of a system under the Franchisee, its successors or assigns, which, in the sole opinion of the City Council has been satisfactory. (Sec. 9-707(1) Amended by Ordinance 1303, November 3, 1975). 2 Dela s in Performance. The bond required in this sec- tion shall provide that with ( ) 15 days prior written notice to the Franchisee, the City may recover against the surety the sums pro- vided for failure to complete construction in accordance with any rovision of Sec. 9-713, System Installation Schedule. p hts reserved by the (3) Rights Reserved to Cit y• The rig respect to the bond -'are in addition to all other rights City with res p other law• the City may have under this ordinance or any R20 - Section 9-707(1) cont. 1 r f Section 9-708. Liability Insurance and Indemnification. (1) Public liability Insurance. (a) 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, at its own cost and expense, the following insurance: (1) 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. (b) Such insurance shall be written for amounts not less than the following as respects subparagraph (i) above: Workmen's compensation statutory Employee's liability $100,000 each occurrence and as respects subparagraph (ii) above: Bodily injury and property damage with a combined single limit of liability (Page deleted due to Repeal of Section). of $1,000,000 each occurrence or bodily injury General and automobile $500,000 each person General and automobile $1,000,000 each occurrence property damage General and automobile $500,000 each occurrence General $500,00 aggregate (c) The insurance referred to in subparagraph (ii) F}21 - Section 9-708 above shall be written under the comprehensive general and comprehensive 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. (d) The policy or policies shall afford the same limits of liability as set out above for liability assumed under contract. (e) 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. (f) The policy or policies shall waive any and all governmental immunity as a defense in any action brought i against the insured. (g) Approval of the insurance by the City shall not in any way relieve or decrease the liability of the Franchise, and it is expressly understood that the City does 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. (h) Evidence of the above insurance in the form of insurance certificates shall be furnished the City clerk by 1 A22- Section 9-708(1)(c) cont. 1 r r i 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. (i) The policies shall name the City, its officers, boards, commissions, agents, employees and apointees as addi- tional 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 is provided by a policy which also covers the Franchisee or any other entity or per- son other than those above named, then the policy shall con- tain an endorsement concerning gross liability, which shall be subject to approval by the City attorney. (2) 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. (3) Indemnification. The Franchisee shall indemnify and hold harmless the City and its agents and employees from and R23 - Section 9-708(1)(h) cont. 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 sub- contractors. 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. F124 - Section 9-708(3) cont. 1 1 1 Section 9-709. System Capability; Facilities. (1) The Franchisee shall install a "duplex" broadband tele- communications network having a minimum initial bandwidth of 295 MHz (5-300 MHz). The network shall be either a "dual cable net- work" utilizing a TV set mounted coaxial switch or a single cable network utilizing a TV set mounted frequency convertor whichever is consistent with the state of the art at the time of the net- work design and installation. In the event that the network to be installed i; a single cable network, the Franchise shall install a second or standby cable whenever the construction of the network requires the disturbance of a paved street, alley, sidewalk or other public or private way so as to permit the net- work to be installed underground. The CATV System shall have the technical capacity for nonvoice return communications which, for the purposes of this Franchise, means the provision of appropriate system design techniques with the installation of cable and amplifiers suitable for the subsequent insertion of necessary nonvoice communications electronic modules. (Sec. 9-709 Amended by Ord. 1303, November 3, 1975). (Subsection 1 emendedbzy Ord. 1670, 1/6/86) (2) The reverse signal transmission capability of the net- work as required in (a) above shall be at least in accordance with the requirements-of—the—Federal Communications Commission's 3rd Report and Order. Whenever a reverse circuit is completed to a subscribers' premises so as to permit a response to an interro- gation originated by the Franchisee, it shall be installed in R25- Section 9-709 such.a way so as to permit subscriber notification and deac- tivation as set forth in Section 9-716(10) herein entitled "Subscriber Privacy. (Sec. 9-709 amended by Ord. 1303, November 3, 1975). (3) 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. (4) Upgrading of Facilities, Equipment and Service. The Franchise shall upgrade its facilities, equipment and service so that its network is as advanced as the current state of tech- nology with field-proven equipment will allow. Failure of the Franchisee to install additional channel capaCity as required by the Federal Communications-Commission-•shall-tbe a•breach of the Franchise Ordinance. (5) Emergency Power. When, 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 provided in subsection (7) of this section. (6) Business Office. The Franchisee shall maintain a full service office in the City at a location convenient to the public offering all walk in consumer services and assistance A26- Section 9-709(2) cont. 1 lircffered by Franchisee at any of Franchisee's other business .offices in the Twin Cities' Seven_County Metropolitan Area. (SuL:3ection 6 amended by Ord. 1670, 1/6/86) (7) 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 r i or civil defense Franchisee shall for an emergency of crises, or at bulletin on all agency that incorporate override times of channels the City into its audio alert shall designate. The facilities the capability whereby the City in times testing, may be simultaneously. provide in a location to be designated by necessary for use of the emergency alert system:— (8) ystem:(g) Studio Facilities; Personnel. (a) The Franchisee shall initially provide a full color capable studio within St. Louis Park. This studio shall be constructed to enable preparation and playback of simulta- neous live and/or taped and/or filmed programming within its facilities and to provide adequate space for reasonable audience participation. A Franchisee's plans for its busi- ness office and color studio to be constructed within the City shall include such items as studio size, accessibility to the public, type of facilities, hours of operation and estimated construction time. (b) The Franchise shall provide initially either by a separate cable or by use of the bi-directional capability of able to introduce a The Franchisee shall the City, all equipment R27 - Section 9-709(6) cont. its proposed network, the capability for live remote broad- casting from at least five (5) select locations within the City to be designated by the City. The Franchise shall con- nect any public building or facility designated by the City that lies along the bi-directional routes of the five (5) selected locations. The Franchisee shall also initially pro- vide a mobile van capable of black and white remote broad- casting. When, in the opinion of the City and the Franchisee, it becomes economically feasible the Franchisee shall place into service a capibility for City-wide live and remote color broadcasting. (c) The Franchise shall, upon request and at no charge, provide the production facilities and personnel reasonably necessary to assist in the preparation and transmission of governmental and educational programs. Upon approval by City Franchisee may delegate with a thi-rd-party-to-help=•ac-complish the requirements set forth in this Section 9-709(8)(c) and Section 9-711(9) of this Franchise Ordinance. (Section 9-709(8) Amended by Ordinance 1303, November 3, 1975). (Subsection 8c amended by Ord. 1670, 1/6/86) (9) Continuous Operation. The network shall be designated and rated for 24-hour-a-daY continuous operation. (10) Computer Access. The Franchisee shall, when it becomes technically and economically viable, provide computer access to all subscribers. q28 - i 1 Section 9-709(8)(b) cont. • r Section 9-710. 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. (Subsections 1-tratnenae by Ord. 1670, 1/6/86) (1) Quality of Reception. The network shall produce a pic- ture 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, and in accordance with all applicable FCC Rules, Regulations and Technical Standards that apply to radiation from said network. (2) Technical Definitions. (a) "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. (b) "Class I cable television channel" means a signaling path provided by a cable television system to relay R29 - Section 9-710 to subscriber terminals television broadcast programs that are received off -the -air or that are obtained by microwave or by direct (c) signaling connection from a television broadcast station. "Class II cable television channel" means a system to path provided by a cable television 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. (d) "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. (e) "Class IV cable television channel" means-Va 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. (f) "Channel frequency 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. (g) "Network noise" means undesired and/or fluctuating disturbances within a cable television channel, exclusive or A30- Section 9-710(2)(b) cont. t 1 E undesired signals of discrete frequency, which degrade the reproduction of the desired signal and which are due to modu- lation 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 MHz above the lower channel boundary of a broadband telecommunications net- work. (h) "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. (i) "Terminal isolation" means at any subscriber ter- minal, the attenuation between that terminal and any other subscriber terminal in that network. (j) "Visual signal level" means the rms voltage pro- duced by the visual signal during the transmission of synchronizing pulses. (k) "BTN 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 net- work may have additional channel capacity for specialized or discrete purposes, but the technical performance specified R31 - Section 9-710(2)(g) cont. shall not be materially degraded as a result. (3) Technical Standards. The following requirements apply to the broadband telecommunications network performance for Class I, Class II and 6 MHz 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 on which signals picked off -air are delivered to the terminals. The measurements shall include the receiver converter if such is required at the subscriber's receiver for any of the channels of required carriage. (a) The frequency boundaries of cable television chan- nels delivered to subscriber terminals shall conform to those set forth in FCC Regulations in effect October 1, 1985, Section 73.603(a). All local television broadcast channels shall be carried on the same network channel to the extent that it is technically feasible. (b) The frequency of the visual carriers shall be main- tained 1.25 MHz + 25 KHz above the lower boundary of the cable television channel, up to the receiving terminals, exclusive of any receiver attachments, such as channel con- verters. (Subsection 3b amended by Ord. 1670, 1/6/86) (c) The frequency of the aural carrier shall be 4.5 MHz + 1 KHz above the frequency of the visual carrier, except where monochrome signal origination occurs within the system, under which conditions, the tolerance shall be + 5KHz. All 1 1932- Section 9-710 (2) (k) cont. 1 color local origination channels shall have aural -visual separation + 1 KHz from 4.5 MHz. (d) The visual signal level at the picture carrier fre- quency on each channel shall not be less than 1000 UV (microvolts) as measured across a 75 ohms terminating impe- dance, at the subscriber's television set terminals. (i) The visual signal level on each channel shall not vary more than 6 decibels within any 24 hour period, and (ii) The visual signal level of any channel shall not vary more than 3 decibels from an adjacent channel, and (iii) The visual signal level of any channel shall not vary more than 10 decibels, from any other channel on the system, and (Sec. 9-710(3)(d) Amended by Ordinance 1303, November 3, 1975) (e) The rms voltage of the aural signal shall be main- tained between 13 and 17 decibels below the associated visual signal level. (f) The peak -to -peak variation in visual signal level caused by._undesired low frequency disturbances (hum or repe- titive transients) generated within the system or by inade- quate low frequency response shall not exceed 3% 2% of the visual signal level. (g) the ratio or visual signal level to network noise A33 - Section 9-710(3)(c) and of visual signal level to any undesired co -channel television signal operating on a proper offset assignment shall be not less than 44 decibels. This requirement is applicable only to: ' (i) each signal which is carried by a cable television system serving subscribers within the Grade B con- tour for that signal, or (ii) each signal which is first picked up within its predicted Grade B contour, or (iii) any local origination channel. (h) The composite triple beat shall not be more than 55 decibels. (i) The second order distortion shall not be more than 67 decibels. (j) The third beat distortion shall not be more than 74 decibels. (k) The ratio of visual signal level to the rms ampli- tude 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. (Subsections h, i, j, k added by Ord. 1670, 1/6/86) (1) The terminal isolation provided each subscriber shall not be less than 30 decibels, except that the isolation between separate television and FM broadcast terminals for the same subscriber shall not be less than 15 decibels. A34- Section 9-710 (3) (g) cont. r Radiation from the broadband telecommunications network shall be limited to applicable FCC Rules, Regulations and Specifications. (m) Network frequency response as measured at any subscriber terminal shall not vary more than + 1.5 db 6MHz bandwidth of any cable television channel or corresponding portion of the FM and mid or upper band spectrums if uti- lized. (n) Network cross -modulation as measured at all network frequencies from the network input to any subscriber terminal shall be at least 54 db below the normal transmission level. (network cross -modulation specifications based on CTA standard). (o) Subscriber installations shall conform where appli- cable to current relevant provisions of the National Electric Code, current edition. (p) The network shall be designed, and installed and maintained so as to be capable of operating over an ambient temperature range of -40° F to +120° F without catastrophic failure or irreversible performance changes over variations in supply voltages from 105 to 130 VAC. (Sec. 9-710(3)(o) added by Ord. 1303, November 3, 1975) (q) Notwithstanding the fact that the network may be in compliance with all the standards set forth herein, the city may require a higher level of performance in any area to (Former Subsections 3h -p renumbered 3k - q by Ord. 1670, 1/6/86) A35 - Section 9-710(3)(1) resolve signal quality or interference problems. (r) CATV System technical and performance standards promulgated by the FCC relating to cable communications systems contained in sub -part K of part 76 of the FCC's rules and regulations relating to cable communications system, technical bulletins of the FCC or other FCC documents, are hereby incorporated by reference into this Franchise. -Any standards adopted from time -to -time by City including any technical standards and testing requirements set forth in any Upgrade and Rebuild Plan which may be authorized by City, as well as Franchisee's proposal, are also hereby incorporated b reference into this Franchise or shall be incorporated by Y reference into this Franchise upon their adoption or appro- val. The results of any tests required by the FCC shall be filed within ten (10) days of the conduct of such tests with City. In any eve nt; the -CATV Sy s_tem._shall provide a good video, audio, data and text quality transmission to all subscribers' terminals without over -the -air interference whe- never such video, audio, data or text services are delivered via cable. (4) Performance Tests and Certification. (a) The Franchisee shall be responsible for insuring that the network is designed, installed, and operated in a manner which fully complies with the technical standards of this ordinance. A36- Section 9-710(3) (q) cont. 1 i (b) 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 show, 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 be directed at determining the extent to which the network complies with the technical stan- dards set forth in this Ordinance, and at the discretion of the City, shall be conducted in the presence of a technical representative appointed by the City and compensated by the Franchise. 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 description of the instru- ments and procedures used shall be attached to the test results filed with the City. (c) After reviewing the certificates of compliance required in paragraph (b) the City may require that addi- tional measurements be made, or that a clarifying explanation A37- Section 9-710(4)(b) be supplied. (d) Franchisee shall bear all the costs of testing required as a result of this Franchise. Any consultant per- forming such testing shall be mutually agreed upon by City and Franchisee and shall, in its proposal to perform such testing, establish a maximum estimated charge for such testing. (Subsection d added by Ord. 1670, 1=6/86) (5) Alternate Approach. If the Franchisee desires to distribute signals by using multiple cable techniques or spe- cialized receiving devices, which, because of the basic design, cannot comply with one or more of the technical standards set forth in paragraph (3) of this section, he may apply to the City for permission to operate with such equipment provided that an adequate showing is made which establishes that the subscribers are provided an equivalent quality of service. The burden is on the Franchisee for-fuli technical proof of equivalent performance. (6) Measurements Used in Performance Tests. (a) Measurements made in tests to demonstrate con- tinuous conformity with the performance requirements set forth in these technical standards shall be made under con- ditions which reflect network performance during normal operations, including the effect of any present or future microwave relay operated in the effect of any present or future microwave relay operated in the Community Antenna Relay Service (CARS) intervening between pickup antenna and A38- Section 9-710(4)(c) cont. 1 1 r f 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- mately those used for normal operation. Pilot tones, auxi- liary 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 measurements; the technique and equip- ment used in each case, if-difr`erent tharrthose--set—f-orth__ herein, shall be fully described in the annual certification to the City. (b) When it may be necessary to remove the television signal normally carried on a cable television channel in order to facilitate a performance measurement, it will be permissible to disconnect the antenna which serves the chan- nel 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. (c) As may be necessary to ensure satisfactory service to a subscriber, the City may require additional tests to demonstrate network performance or may specify the use of A39 - Section 9-710(6)(a) cont. different test procedures. (d) Network frequency response measurements may be made with a calibrated signal generator, variable attenuator and a frequency selective voltmeter. All TV signals except for ALC, AGC, or ASC pilot carriers may be disconnected during this test. With all automatic gain control amplifiers in the section under test set to their normal operating mode, the signal generator shall be connected to the input to the tele- communications network and set for a cw signal at the desired frequency level normally present at that frequency and loca- tion. With the meter and variable attenuator connected in series to the subscriber terminal under tests, the signal level shall be measured and recorded. Measurements shall then be made in a similar manner for all frequencies at the levels normally carried on the network. (e) Network -noise -may -be -measured using a-f-requency- selective volt -meter (field strength meter which has been suitable 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 indica- tions to obtain the total noise power present over a 4MHz R40- Section 9-710(6)(c) cont. 1 i a 1 1 band centered with the cable television channel (or equiva- lent 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 MHz and appropriate corrections shall be made to account for its gain. (f) 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 (e) above), or other suitable instruments, which instruments have been calibrated for adequate accuracy. (g) 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 net- work if desired) connected to each output spigot of the customer tap port. (h) _ Radiation measurements may be 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 J 41 - Section 9-710(6)(e) Communications Commission, Volume 11, Part 15 Subpart D, for cable television systems. (i) The system cross -modulation measurement may be per- formed in accordance with NCTA Standard 002-0267. (j) The network hum modulation may be measured at each video carrier frequency on the network using a calibrated signal generator, a detector and an oscilloscope. The signal generator shall be connected, the level and frequency adjusted and all other channels set at their normal levels. With the detector and oscilloscopes connected to the subscriber terminus, the average level of the detected signal and the peak -to -peak AC hum will be indicated on the oscilloscope. The percent of hum modulation is defined as the ratio expressed in percent of the average level of the detected signal to one-half the indicated peak -to -peak AC hum. (k) 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. (Section 9-710(1-6) amended by Ord. 1670, 1/6/86) A42 - Section 9-710(6)(h) cont. Section 9-711. Channels to be Provided by Franchisee. (1) Specially Designated Public, Educational, Governmental and Leased Access Channels. Franchisee shall, to the extent of the CATV System's available channel capacity, provide to each of the subscribers who receive all, or any part of, the total video programming services offered on the CATV system, reception on at least one (1) specially designated noncommercial public access channel available for use by the general public on a first come, first serve, nondiscriminatory basis; at least one (1) specially designated access channel for use by local educational authori- ties; at least one (1) specially designated access channel available for local government use; and at least one (1) spe- cially designated access channel available for lease on a first come, first serve, nondiscriminatory basis by commercial and non- commercial users. In the event Franchisee provides subscribers only non -video services, alarm system service or only data transmission services for computer operated functions, Franchisee shall be exempt from providing access channel reception to such non -video alarm or data service -only subscribers. The VHF spectrum shall be used for at least one (1) of the specially designated noncommercial public access channels required in this Subdivision. (2) Charges for Use of Public Access Channels. No charges shall be made for channel time or playback of prerecorded programming on at least one (1) of the specially designated non- A43 - Section 9-711 commercial public access channels required by this Section, pro- vided, however, that personnel, equipment, and production costs may be assessed for live studio presentations exceeding five (5) minutes in length. Charges for such production costs and any fees or use of other public access channels shall be consistent with the goal of affording the public a low cost means of tele- vision access. (3) Channel Capacity Expansion. Whenever any of the spe- cially designated noncommercial public access channel, the spe- cially designated education access channel, the specially designated local government access channel or the specially designated leased access channels are in use during eighty percent (80%) of the weekdays (Monday -Friday), for eighty percent (80%) of the time during any consecutive three (3) hour period for six (6) weeks running, and there is demand for use of an additional channel for -the -same -purpose, Fr-anch-see--shall -then-have__six (6) months in which to provide a new specially designated access channel for the same purpose, provided that the provision of such additional channel or channels shall not require Franchisee to install converters. Nothing in this Section shall be construed so as to preclude the installation of converters by Franchisee on a voluntary basis, or as a result of an agreement arrived at through negotiation between City and Franchisee, or by a poten-, tial access user who wished to install converters in order to make use of additional channel or channels. A44- Section 9-711(2) r f i (4) Access Channel Rules. In conjunction with City, the Franchisee shall establish rules pertaining to the administration of the specially designated noncommercial public access channel, the specially designated educational access channel and the specially designated leased access channel. (Former Subs. 1-4 deleted by Ord. 1670, 1/6/86. New 1-4 added) (5) Special Service Subscribers. In the event Franchisee offers subscribers the option of receiving programs on one (1) or more special service channels without also receiving regular subscriber services, Franchisee may comply with the requirements of this Section by providing the subscribers who receive the spe- cial -service only, at least one (1) specially designated com- posite access channel composed of the programming on the- specially hespecially designated noncommercial public access channel, the specially designated educational access channel, and the specially designated local government channel. This Section shall not apply to subscribers receiving only non -video services, only alarm services or only -data transmission services for computer functions. (6) Reduction of Channel Capacity. If available channel capacity is reduced in the future or where demand for use does not warrant activation of all the specially designated access channels required in this Section, at least one access channel shall be set aside. To the extent time is available therefor, and to the extent consistent with rules adopted by City, access channels may also be used for other broadcast and nonbroadcast A45 - Section 9-711(4) services, provided that such services are subject to immediate displacement and may be replaced by access channels if City determines, in its sole discretion, that there is demand to use the channel for its specially designated access purpose. Franchisee shall, in any case, provide at least one (1) full channel on the VHF spectrum for shared access programming. Available channel capacity shall be reduced or a determination that demand for use does not warrant activation of all the spe- cially designated access channels required by this Section shall be made only pursuant to the following procedure: (a) Franchisee will notify City of the proposed change; (b) The City shall make a determination following a process of review which takes into account such rules as may be established by City for this purpose and which affords notice and opportunity to be heard to all interested parties. (7) Access"Equtpinent Available. The--Franchisee-shall=.assure that at least the minimal equipment necessary for the production of programming and playback of prerecorded programs for the specially designated noncommercial public access channel and such other equipment as set forth elsewhere in the Franchise and in Exhibit attached and made a part of the Franchise and made readily available for public use. (8) Additional Channels for Commercial Use. In the event of any CATV System upgrade or other expansion of channel capacity, Franchisee shall, at a minimum notice, make channels available R46-` Section 9-711(6) cont. 1 i 1 1 for commercial use pursuant to the minimum requirements set forth in Section 611 of the Cable Communications Policy Act of 1984. (9) 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 chan- nel 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. (10) Basic Cable Service Channels. The Franchisee shall prc- vide basic cable service channels as available which include, at a minimum, individual channels in the following broad categories of service as available: (a) broadcast network affiliates. (b) public education and governmental access and local origination channels as set forth in this Section 9-711. (c) one or more distant independent super stations. (d) satellite delivered channels which independently provide the following broad categories of programming as available: A47- Section 9-711(8)cont. i) News programming ii) Sports programming iii) Music programming iv) Children's programming v) Arts programming vi) Public affairs programming vii) Broad-based general interest programming viii) Religious Programming ix) Financial programming (e) either local or satellite delivered channels which provide: i) Programming information ii) Current weather information (f) Regional Channel Six (Sec. 9-711(1-10) added_by Ord. 1670, 1/6/86) (&48- Section 9-711(10)(d) cont. Section 9-712. Inter -Connection. (1) Required for Network. Subject to obtaining inter- connection approval from adjoining network franchisors and opera- tors, the Franchisee shall inter -connect its broadband telecommunications network with all other broadband telecom- munications 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. (2) 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 pro- vided for by Section 9-711 (2) and (3). Proposed use, frequency bandwidth, letter of numeric designation, and hours of operation shall be specified. In the event that the analysis of the request made by the Franchisee shows such interconnection to be economically unfeasible the City may elect, but at its sole discretion, to arrange for compensation to be paid to the Franchisee in an amount sufficient to assure economic feasibility by the Franchisee and so order the interconnection. In the event that the analysis fails to show technical feasibility, the Franchisee shall have no further responsibility for accomplishing said interconnection until such time as permitted by improve- A49 - Section 9-712 ments_ in technology. Sec. 9-712(2) Amended by Ordinance 1303, November 3, 1975). A50 - Section 9-712(2) cont. 1 1 i Section 9-713. S stem Construction Re•uirements and Installation Schedule. (1) Permit Application. Within 30 days after acceptance of all a Franchise, the Franchisee necessary permits, licenses in the conduct of its business. shall make application to obtain and authorizations which are required 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 b regulatory agencies having jurisdiction over the operation of Y_ the broadband telecommunications network or their-asseci-ated microwave transmission facilities and necessary authorizations from the Federal Aviation agency to construct receiving antenna towers. Copies of all applications, communications and all per- mits, 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 -permed -0E-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 A51 - Section 9-713 shall bear all costs. (2) 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. (3) Commencement of Service. Within 180 days after the com- mencement of construction, the Franchisee shall commence service to subscribers as defined in Section 9-701(b), subsequent actual operations being subject to receipt of certificate of compliance from FCC. The completion of the construction and installation shall be pursued with reasonable diligence. (4) Complete Service. The distribution facilities provided by a Franchisee shall be constructed in all areas within the cor- porate limits of the city, within 18 months after commencement of service. (5) 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 f the system shall be grounds for termination of the Franchise; provided, that the Council in its discretion may extend the time for the commun- cement and completion of construction and installation for addi- tional periods in the event that the Franchisee, acting in good faith, experiences delays by reason of circumstances beyond its 452 - Section 9-713(1) cont. r f L control. (6) Delays and Extensions of Time. The Franchisee shall not be liable for any delays in installation if the failure to per- form 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 per- form is caused by the default of a subcontractor or supplier, and if such default arised out of causes beyond the control of both the Franchisee and subcontractor or supplier, and without the fault or negligence 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. (7) Failure to Complete. The Franchisee shall pay to the city $500 per day for failure to commence service as set forth in subsection (3) of this section, and to complete service as set forth in subsection (4) of this section. There shall be no penalty if failure to commence actual operations at anytime is P53 - Section 9-713(5) cont. caused by a delay of the FCC in issuing a certificate of compliance. In this event the Franchisee shall be prepared, if requested by the city, to demonstrate that the requirements of the Franchise have been satisfied. and and (8) System Upgrade and Rebuild. rebuild the CATV System pursuant timetable requirements set forth Franchisee shall upgrade to all design, construction in a System Upgrade and Rebuild Plan agreed upon and executed by City and Franchisee. (9) Duty Regarding Franchisee's Facilities. Nothing con- tained in the Franchise shall relieve any person from liability arising out of the failure to exercise reasonable care to injuring the Franchisee's facilities while performing any connected with grading, regrading or changing the line of avoid work any street or public place or with the construction or reconstruction of any utility facility sewer or water system. (10) Line—E-xte•nsio(n—Policy. ` `Franchisee "shall pass=a`ll residential dwellings within City. Franchisee shall pass any non-residential building when the owner of such building request cable service and agrees to pay all actual installation costs in excess of Two Hundred Fifty and no/100 Dollars ($250.00). (Subsections 8, 9 & 10 , added by Ord. 1670, 1/6/86) 454- Section 9-713(7) cont. r 1 Section 9-714. Fees, Rates, and Charges. To the extent authorized by Federal law, rates and charges for services offered by Franchisee shall be established pursuant to this Section. (1) Basis; Approval. Fees rates, or charges for any service provided shall be 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 effi- cient management. All fees, rates 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. (2) Changes in Rates, Fees or Charges. I (a) There shall be no increase in the initially approved rates, fees or charges for three years after the commencement of service, excluding the effect of subsequent imposition of any federal, state or local taxes, copyright payments or other legally imposed fees or charges. (b) Any subsequent increase requests, in addition to other factors described in this section, shall take into con- sideration the consumer price index for the Minneapolis -St. Paul area compiled by the U.S. Department of Labor Statistics and additional reasonable costs for increased or additional services. The Franchisee shall pay the reasonable costs of determining an appropriate increase including but not limited A55- Section 9-714 to, costs incurred by the City to retain a rate expert to assist the City in its deliberations. (c) If the Franchise requests a change, it shall pre- sent 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. (d) A rate expert's report is not required for action upon a proposed increased 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 one in the official newspaper no less than 20 days prior to the hearing. The City may take such steps as it deemed necessary to obtain other information before acting upon Franchisee's request. No action shall be taken in regard to alteration of rate, fee or charge schedu- les except by'written resolution of-the`City Council -accom- panied by the Council's findings and conclusions. Copies shall be service upon the Franchisee by personal delivery to its business office. (e) For the purposes of Subsection 2 above, "rates, fees or charges" shall be limited to rates, fees or charges made for services regularly provided to all cable television subscribers and shall specifically exclude rates, fees or charges for specialized programming for which a per -program or per -channel charge is made. A56- Section 9-714 (2) (b) cont. 1 1 Sec. 9-714(2)(e) added by Ord. 1572, October 4, 1982). (3) Charge for Converter. The Franchisee shall make no monthly service charge for the use of any converter, which constitutes a part of the minimal equipment, which is necessary for the subscriber's receipt of basic cable service; however, a reasonable security deposit may be required. The Franchisee may charge a monthly service fee for the use of a wireless remote converter to the extent that such wireless remote converter does not constitute a part of the minimum equipment offered by Franchisee, which is necessary for the subscriber's receipt of basic cable service. A "wireless remote converter" for the pur- pose of this Section shall mean, any converter which includes a channel selection unit, which is physically independent of subscriber's television set and is not connected by any wire or cable to CATV System or any television set. (4) Disconnection. There shall be no charge for disconnec- tion from the broadband telecommunications 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. A57- Section 9-714(3) (5) 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 economi- cal 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. (6) Judicial Review. The Franchisee shall have prompt judi- cial review of any resolution of the City Council on rates, fees, or charges in the District Court of Hennepin County if applica- tion is made to the court within 30 days after service of the resolution on the Franchisee. Review by the court shall be 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- be taken -by -the court. Except as otherwise provided, all review proceedings shall be conducted according to the provisions of Minnesota Statutes, Sections 16.0424 - 15.0426. (7) 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: (a) in violation of constitutional provisions; or A58- Section 9-714(5) 1 a 1 f 1 (b) in excess of the authority conferred upon the City Council by this ordinance; or (c) Made upon unlawful procedures; or (d) Affected by other error of law, or (e) Unsupported by substantial evidence in the entire record; or (f) Arbitrary or capricious. (8) Notice of Rate Change. Prior to implementation of any increase in rates or charges for any service or equipment pro- vided by Franchisee, Franchisee shall provide City and all subscribers a minimum of thirty (30) days prior written notice of such change. In addition, Franchisee shall send a press release containing notice of such change to all newspapers of general circulation in City at least thirty (30) days prior to the implementation of such change. Franchisee shall cablecast notice of such change on at least one channel of CATV system at least hourly for at least thirty (30) days prior to the imple- mentation of any rate change. Nothwithstanding anything set forth in this Franchise Ordinance or any Subscriber Service Contracts, subscribers shall have the right to order disconnec- tion of cable service after notice of rate increase, but prior to the date of that rate increase, without any notice to Franchisee. This Section shall not prohibit Franchisee to require return of any of Franchisee's equipment as part of an order to disconnect cable service. No subscriber shall be billed for cable service 059- Section 9-714(7)(b) received after an order for disconnection pursuant to this Sec- tion. (9) Current Rates. All current subscriber charges are set forth in Exhibit attached and made a part hereto. Franchisee shall maintain on file and available for public inspection at the Municipal Building of City throughout the term of this Franchise a listing of all current subscriber rates. (Subsections 8 & 9 added by Ord. 1670, 1/6/86) 160 - Section 9-714(8) cont. r f 1 Section 9-715. Conditions of Public Property Occupancy. (1) Approval of Proposed Construction. The Franchisee shall first obtain the approval of the director of public works before any construction is commenced on streets, alleys, sidewalks, driveways, public grounds or places of the City. Application for approval of construction shall be in a form specified by the director of public works. The Franchisee shall give the City reasonable written notice of proposed construction to allow coor- dination of all work between the City and the Franchisee. (2) Excavation Permits. A franchise 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 btained-a--permit to do so in the manner provided by ordinance. (3) Changes Required by Public Improvements. The Franchisee shall, at its expense, protect, support, temporarily disconnect, relocate in or remove from a street, alley, sidewalk, driveway, or public ground 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, power lines, signal lines, tracks or any other type of structure, improvement or alteration of public property. (4) Facilities Not to Be Hazardous or Interfere. All wires, conduits, cables and other property and facilities shall be so A61- Section 9-715 located constructed, installed and maintained as not to endanger or unnedessarily interfere with the usual and customary trade, traffic and travel upon the streets, alleys, sidewalks, driveways or public grounds and places of the City. The Franchisee shall keep and maintain all of its property in good condition, order and repair at any—r-eas.on-abletime 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 spe- cified by the director of public works. (5) Method of Installation. All wires, cables, amplifiers and other property shall be constructed and installed in an orderly and workmanlike manner. All cables and wires shall be installed parallel with existing telephone and electric wires whenever possible. Multiple cable configurations shall be arranged in parallel and bundled, with due respect for engi- neering and safety considerations. Any portion of a broadband telecommunications network that is installed in a park or publicly owned open space area shall be installed underground in a manner approved by the City. All installations shall be P62 - Section 9-715(4) cont. 1 i r r 1 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 Section 9-714. (6) Protection of Facilities. Nothing 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. (7) Notice of City Improvements. The City shall give the Franchisee reasonable notice of plans for street improvements where paving or resurfacing of a permanent nature is involved. The notice shall contain the nature and character of the improve- ments, the streets upon which the improvements are to be made, the extent of the improvements and the date of commencement of work. Notice shall be given a sufficient length of time in advance to permit the Franchisee to make any additions, altera- /463- Section 9-715(5) cont. i tions., or repairs to its facilities deemed necessary, considering seasonal working conditions in advance of the actual commencement of the work. (8) Compliance with Codes. All construction, installation, maintenance and operation of broadband telecommunications networks or facilities shall comply with the provisions of the National Electrical Safety Code as prepared by the National Bureau of Standards, the National Electrical Code of the National Board of Fire Underwriters, the Bell Telephone System Code of Pole Line Construction, standards issued by the FCC or other federal or state regulatory agencies, and local zoning regulations. Every broadband telecommunications 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. (9) Moving Wires. 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. (10) 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 I64- Section 9-715(7) cont. 1 1 a of trees from coming in contact with the wires and cables of the company. All trimming shall be done under the supervision and direction of the City and at the expense of the Franchisee. (11) 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. A65- Section 9-715(10) cont. Section 9-716. Operation of the Franchise/Consumer Protection. (1) 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. (2) Repairs and Maintenance. (a) 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. (b) Interruption of Service. Whenever 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 reaso- nable notice -to the—sub"scribers—affected. Allcosts =incur -r -ed in effecting such tests, repairs, adjustments or installa- tions shall be borne by the Franchisee unless otherwise pro- vided by law, ordinance or regulation. (c) Service Response and Rebate. (1) 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 dy. The Franchisee shall also provide prompt service response, seven days a week for all A66- Section 9-716 1 1 a 1 1 complaints and requests for repairs or adjustments. Calls received prior to 2:00 p.m. shall be answered the same day. In no event shall the response time for calls received subsequent to 2:00 p.m. exceed 24 hours. (2) If the Franchisee fails to correct a CATV System service deficiency within 24 hours, it shall rebate or credit 1/30th of the monthly charge for "Cable Service" to each subscriber for each 24 hours or frac- tion 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 presented by strike, injunction or other cause beyond the control of the Franchisee. (3) Franchisee shall make every reasonable effort to perform system service repair and maintenance at no cost to the subscriber and a time convenient to subscriber and in a timely manner. At a minimum, Franchisee shall make service repair and maintenance personnel available at least twelve (12) hours per week outside of normal business hours. (Subsections 2 & 3 added by Ord. )670, 1/6/86) (3) Reports, Books and Records of Franchisee. (a) City's Right to Audit. City shall have the right to audit Franchisee's accounting and financial records upon reasonable notice. (b) Annual Report. Within one hundred twenty (120) A67- Section 9-716 (2) (c) (1) cont. days of the end of its fiscal year, including the year in which the Franchise becomes effective, Franchisee shall file with City an annual report consisting of the following: (1) A sworn financial statement including a state- ment of income, revenues, operating expenses, capital expenditures, depreciation with an attached depreciation schedule, interest paid, taxes paid and balance sheets for the operating company consisting of the St. Louis Park, Fridley, and Bloomington, Minnesota Cable Systems and a certified statement of Gross Subscriber Revenues of St. Louis Park CATV System. The St. Louis Park CATV System revenue statement shall be in a form and manner approved by City and shall delineate specific revenue source categories and revenues. (2) Current list of names and addresses of each off -icer -and director and -other management personnel; as well as each shareholder having stock ownership of three percent (3%) or more. (3) A copy of each document filed with all federal, state and local agencies during the preceding fiscal year and not previously filed with City. (4) A statement of its current billing practices. (5) A current copy of its access rules. (6) A current copy of its subscriber service contract. /468- Section 9-716 (3) (b) cont. (7) A statement listing all production equipment provided for use with CATV System. (8) A statement listing all production equipment of Franchisee which will be utilized by more than one (1) cable system. (Subsection 3(1-8) added by Ord. 1670, 1/6/86) (9) The requirements of Section 9-716(7) below. (c) 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 determined reasonably necessary or appropriate by the City. (di Report on -Complaints. TFie Franchisee shalI-report to the City at least monthly, on written forms specified by the City, the complaints received from subscribers during each reporting period and such other matters as the City shall determine. 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. (e) Records and Property Available for Inspection. At all reasonable times, the Franchisee shall permit any duly authorized 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 records kept or maintained by the R69- Section 9-716 (3) (b) (7) Franchisee or under its control which deal with the opera- tions, 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. (f) Report on Channel Use; Notice. The Franchisee shall maintain on file with the City a report stating the network channel capaCity, listing the cable television chan- nels 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 con- ditions. When television stations are to be deleted or added, the-C-ity-and-all subscribers -shall -be- notified --in writing 30 days prior to the date of a deletion or addition. (4) Rules of the Franchise. The Franchisee may promulgate such rules, regulations, terms and conditions governing the con- duct 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 A70 - Section 9-716(3)(e) cont. r L of Minnesota or the United States. A current copy of such rules, regulations, terms and conditions shall be filed with the City. (5) Approval of Service Contract. If a written service contract is used by a Franchisee in its dealings with subscri- bers, the Franchisee shall obtain City approval of the form and terms of the contract prior to entering into any such service contracts. The Franchisee shall make no changes in the form or terms of any such service contract without prior approval of the City. The current length and terms of service contracts shall be provided to City by Franchisee and maintained and available for public inspection at Municipal Building of City. If no written service—contract-is used -by Franchisee in its dealings with subscribers, the Franchisee shall prepare in a format approved by City, a written description of service offerings, rates, system service policies, consumer inquiry and complaint practices and marketing practices which shall be subject to approval by City, to the extent authorized by federal law. (Subsection 5 amended by Ord. 1670, 1/6/86) (6) Filing Communications with Regulatory Agencies. Copies of all petitions, applications and communications that are sub- mitted 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 network operations within the City, shall also be submitted simultaneously to the City by filing the same with the City manager. A71- Section 9-716(4) cont. (7) Plan Filed. A Franchisee shall submit within 30 days after commencement of service and in each annual report thereafter, a plan stating the proposed number of channels which will be devoted to network affiliated television stations, non - network independent television stations, including educational television stations, and channels to be devoted to locally origi- nating programs. The plan shall also contain the following: (a) An estimate of the total number of broadcast hours per week per channel which the Franchisee proposes to devote to local programming. (b) The types of local programs it proposes to originate. (c) A proposed programming schedule for locally origi- nated channels. (d) A description of the proposed marketing program. (e) Plans for providing a duplex system and FM multiplex -s e•reo-end'-music--chhannels. (Subsection 7(a -e) amended by Ord. 1670, 1/6/86) (f) Franchisee goals regarding subscribership, Basic/ Pay ratio, advertising and other revenue sources. (Subsection "f" added by Ord. 1670, 1/6/86) (8) Franchisee Assistance in Developing Public Uses. The Franchisee shall assist the City in developing the full capabili- ties of cable television for public use, including but not limited to, its application to such public services as traffic surveillance, monitoring flows in water and sewer lines, measuring air pollution through sensor systems, public service messages, training of personnel, fire and burglary detection, A72- Section 9-716(7) 1 up L polling and surveying and data processing. (9) Preferential or Discriminatory Practices Prohibited. (a) The Franchisee shall establish and maintain an Affirmative Action Program 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' Affirmative Action Program 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 established in the City's Affirmative Action Program. (b) The Franchisee shall not refuse cable television service to any person or organization who requests such ser- vice 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 campaigns to stimulate subscriptions to the system 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 which any customer A73 - Section 9-716(8) cont. coming within such classifications shall be entitled. (c) The entire system of the Franchisee shall be operated in a manner consistent with the principle of fair- ness and equal accessibility of its facilities, equipment, channels, studios, and other services to all citizens, busi- nesses, public agencies, or other entities having a legiti- mate use for the system; and no one shall be arbitrarily excluded from its use; allocation of use of said facilities shall be made tory agencies decisions are according to the rules or decisions of regula- affecting the same, and where such rules or not effective to resolve a dispute between conflicting users or potential users, the matter shall be submitted for resolution by the City Council. (Subsection 9 amended by Ord. 1670, 1/6/86) (10) Subscriber Privacy. A Franchisee shall not, without City approval, initiate or use any form or procedure or devise for procuring infe mat -ton -or -data-from-cable system --subscribers' terminals by use of the cable system. Franchisee and City shall maintain constant vigilance with regard to possible abuses of the right of privacy or other human rights of any subscriber, programmer or general citizen resulting from the operation of the CATV System. Franchisee shall not place in any dwelling unit of subscribers any equipment capable of two-way communications without the written consent of the subscribers, and will not utilize the two-way communications capability of the CATV System for unauthorized subscriber sur - (Subsection 10 amended by Ord. 1670, 1/6/86) (-474- Section 9-716(9)(b) cont. 1 r veillance of any kind. (a) No signals of a Class IV cable communications chan- nel may be transmitted from a subscriber terminal for pur- poses of monitoring individual viewing patterns or practices without the express written permission of the subscriber. The request for such permission shall be contained in a separate document with a prominent statement that the subscriber is authorizing the permission in full knowledge of its provisions. Such written permission shall be for a limited period of time not to exceed one (1) year which shall be renewed at the option of the subscriber. No penalty shall be invoked for a subscriber's failure to provide or renew such authorization. The authorization shall be revocable at any time by the subscriber without penalty of any kind what- soever. Such permission shall be required for each type or classification of Class IV cable communications activity planned for the purpose of monitoring individual viewing pat- terns or practices. (b) No information or data obtained by monitoring transmission of a signal from a subscriber terminal, or any other means, including but not limited to lists of the names and addresses of such subscribers or any lists that identify the viewing habits of subscribers shall be sold or otherwise made available to any party other than to Franchisee and its employees for internal business use, and also to the F75- Section 9-716(10) cont. subscriber subject of that information, unless Franchisee has received specific written authorization from the subscriber to make such data available. (c) Written permission from the subscriber shall not be required for conducting system wide or individually addressed electronic sweeps for the purpose of verifying CATV System integrity or monitoring for the purpose of billing. Confidentiality of such information shall be subject to the provision set forth in paragraph (b) of this Section. (d) For the purposes of this provision, a Class IV cable communications channel means a signaling path provided by CATV System to transmit signals of any type from a subscriber terminal to another point in the communications system. (e) At the time of entering into an agreement to pro- vide any-ea•ble-se•r-vice,- orother service -Y• -to a-subscrabei and at least once a year thereafter, the Franchisee shall provide notice in the form of a separate, written statement to such subscriber which clearly and conspicuously informs the subscriber of: (1) the nature of personally identifiable infor- mation collected or to be collected with respect to the subscriber and the nature of the use of such information; (2) the nature, frequency, and purpose of any 476- Section 9-716(10(b) cont. 1 1 a 1 f 1 disclosure which may be made of such information, including an identification of the types of persons to whom the disclosure may be made; (3) the period during which such information will be maintained by the Franchisee; (4) the times and place at which the subscriber may have access to such information in accordance with subsection (d); and (5) the limitations provided by this section with respect to the collection and disclosure of information by Franchisee and the right of the subscriber under sub- sections (f) and (h) to enforce such limitations. For the purposes of this section, the term "personally iden- tifiable information" does not include any record of aggregate data which does not identify particular persons. (f) A cable subscriber shall be provided access to all personally identifiable information regarding that subscriber which is collected and maintained by a cable operator. Such information shall be made available to the subscriber at reasonable times and at a convenient place designated by Franchisee. A cable subscriber shall be provided reasonable opportunity to correct any error in such information. (g) Franchisee shall destroy personally identifiable information if the information is no longer necessary for A77- Section 9-716(10)'(e)(2) cont. the purpose for which it was collected and there are no pending requests or orders. for access to such information under subsection (f) or pursuant to a court order. (h) Any person aggrieved by any act of Franchisee in violation of this section may bring a civil action in a United States District Court or the District Court of Hennepin County, Minnesota. (1) The court may award: (a) actual damages but not less than liquidated damages computed at the rate of $100.00 a day for each day of violation or $1,000.00 whichever is higher; (b) punitive damages; and (c) reasonable attorneys' fees and other litigation costs reasonably incurred. (2)---'The--remedy provided—by-this section shall --be in addition to any other lawful remedy available to a cable subscriber. (Subsection 10(a -h) added by Ord.,1670, 1/6/86) (11) Ownership Interests Prohibited. No Franchisee shall own directly or indirectly, any interest either in a newspaper, or in a radio or television station that has any, significant distribution or reception within the City. (12) Service Continuation, Notification of Subscribers. Before providing cable service to any subscriber, the Franchisee shall notify the subscriber in writing that the Franchisee is A78- Section 9-716(10)(g) cont. r f making use of the public right-of-way in the City to provide cable television services; that the use of such rights-of-way 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. (13) Removal of Roof Top Antenna. The Franchisee may not, as a condition of service, remove and dispose of a roof top antenna. (14) Sale of Service of TV Receivers. Neither the Franchisee during the period -of -the Fr`anchiee-nor any-"oi`itt--sub"sid-iaries 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 direc- tion, 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. (15) Use by Political Candidates. The Franchisee shall pro- vide 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. A79 - Section 9-716(12) cont. (16) Periodic Evaluation and Renegotiation Sessions. The field of cable communications is a relatively new and rapidly changing one which may see many regulatory, technical, financial, marketing and legal changes during the term of this Franchise. Therefore, in order to provide for a maximum degree of flexibility in this Franchise, and to help achieve a continued advanced and modern system, the following evaluation provisions will apply: (a) City hereby is given the right to adopt rules and regulations controlling the procedures as set forth below and subjects for Evaluation and Renegotiation Sessions. In the absence of any City action taken to exercise these rights, Franchisee shall be subject to at least the procedures and subjects described in this section. (b) City may require, at its sole discretion, reasonable Evaluation and Renegotiation Sessions in years five (5) and ten (10) `of-Vthe Franchise and; in-addition`,--such-Evaluation and Renegotiation Sessions shall be conducted at such times as required by federal or state law. At a minimum, such Evaluation and Renegotiation Sessions shall be conducted by Commission in years five and ten after the grant of any Franchise or renewal. (c) To assist in evaluation, City may enlist an inde- pendent consultant mutually agreed upon by City and Franchisee to conduct an analysis of the CATV System and its performance and to submit a report of such analysis to the R80 - Section 9-716(16) r City. All reasonable consultant fees and costs incurred as a result of Evaluation and Renegotiation Sessions described in Subsection (6) above shall be paid by Franchisee to the extent allowable under applicable law. Such costs are con- sidered additional and are not to be reimbursed from franchise fees collected. (d) Unless additional topics are agreed upon by Franchisee and City, topics which may be discussed at any - Evaluation and Renegotiation Session include: 1. Computer uses; 2. Service rate structures; 3. Interconnection; 4. Franchise fees; 5- Perratt re -s ; - 6. Free or discounted services; 7. Application of new technologies; 8. Technical standards; 9. System performance; 10. Services provided; 11. Programming offered; 12. Access channels, facilities and support; 13. Municipal uses of cable; 14. Educational uses of cable; 15. Use and promotion of institutional network; 16. Local origination; 17. Consumer protection; 18. Privacy; 19. Amendments to this Franchise; 20. Judicial rulings; 21. Government Agency rulings; 22. FCC rulings; 23. Line extension policies; 24w- Insurance -T-- 25. nsu-rance-;25. Franchisee rules; 26. City rules; 27. Construction of a separate institutional net- work; 28. The need for providing installations and contractual arrangements for additional data bases and for additional bandwidth for data transmission on the CATV System. (e) During an Evaluation and Renegotiation Session, 081 - Section 9-716(16)(e) cont. Franchisee shall fully cooperate with City and shall provide without cost such information and documents as City may request to reasonably perform evaluation and conduct renego- tiation. (f) If, as a result of the Evaluation and Renegotiation Session, evidence or at any exists of require Franchisee other time, City determines that reasonable inadequate CATV System performance, it may to perform tests and analyses directed toward such suspected inadequacies at the Franchisee's own expense. Franchisee shall fully cooperate with City in per- forming such testing and shall prepare results and the report prepared by Franchisee shall include at least: 1. A description of the problem in CATV System performance which precipitated the special tests. 2. What CATV System component was tested. - -3. --the--egt-pment--used—and—proce-dures--employed—in testing. 4. The method, if any, by which such CATV System performance problem was resolved. 5. Any other information pertinent to said tests and analyses which may be required by City, or deter- mined when the test is performed. City may require that tests resulting from subsection (b) above be supervised at Franchisee's expense by a consultant designated by City. The consultant shall sign all records A82- Section 9-716(16)(e) cont. 1 i r 1 L of special tests and forward to City such records with a report interpreting the results of the tests and recom- mending actions to be taken. (g) As a result of an Evaluation and Renegotiation Session, City or Franchisee could determine that a change in the terms of the Franchise may be required, that the CATV System or Franchise requirements should be updated, changed, or that additional services should be provided. If the change is consistent with the terms of this Franchise, the needs of the City and existing state-of-the-art (or due to regulatory, technical, financial, marketing, inflation or legal---requ-irementsrand -implementation of a change would not unreasonably add to the cost of providing cable communications services, Franchisee and City will, in good faith, negotiate the terms of the change and any required amendment to this Franchise. Upon adoption of such a Franchise amendment, if one is required, the change will become effective and Franchisee shall accept same. In the event Franchisee fails to negotiate a requested change of the City, the City may enforce the.procedures of this section by any available remedy. (Subsection 16(a -g) addled -by -Ord: 1670, -1/6f8-6— (17) Annual Opinion Survey. -(a) Commencing in 1986 and annually thereafter, Franchisee shall, no earlier than ninety (90) days and no later than thirty (30) days prior to submitting its written A83- Section 9-716(16)(f) cont. — _„—..u. A%.-Fysi.._..... _ . annual report to City, conduct a survey prepared by Franchisee which identifies the programming preferences of subscribers and which identifies subscriber satisfaction or dissatisfaction with the maintenance and complaint practices of Franchisee. (b) The survey and report shall be prepared and con- ducted in conformity with such requirements, including super- vision and review of the returned surveys, as the City may prescribe. (c) Each questionnaire shall be prepared and conducted so as to provide a measurement of subscriber preferences for: (1) Programming offered by Franchisee at the time the survey is conducted; and (2) Programming generally available to cable subscribers nationally but not offered by Franchisee at the ti-me--the-su-rvey-is--conducted-together-wi-th-=the incremental cost per subscriber for providing such programming. (d) For the purposes of the preceding paragraph, "incremental cost per subscriber" shall include necessary additional equipment costs, programming costs and a fair rate of return. (e) Each questionnaire shall be prepared and conducted so as to provide a measurement of subscriber satisfaction or dissatisfaction with the maintenance and complaint practices A84- Section 9-716(17)(a) cont. 1 i a of Franchisee. (f) Franchisee shall make reasonable good faith efforts to promote subscriber awareness of the survey and the programming generally available to cable subscribers but not offered by Franchisee. (g) The survey results shall be compiled and published by Franchisee in a manner readily comprehensible to the public and shall be made available for public review within City at locations and times convenient to the public. Upon request of City, Franchisee shall make the subscriber returns available for City review and inspection. (h)- Franchisee shall, together with its written annual report, provide a written compilation report of the survey results and report in writing what steps Franchisee is taking to implement the findings of the survey. (i) in the event twenty-five percent (25%) or more of those surveyed report dissatisfaction with Franchisee's maintenance and complaint practices, Franchisee shall have sixty (60) days from the date that City receives such a report to develop an action plan regarding new maintenance and complaint practices, as approved by City. In the event that Franchisee fails to carry out the responsibilites of this Section, City may impose penalties for violations of this Section. (Subsection 17(a -i) added by Ord. 1670, 1/6/86) ,A85- Section 9-716(17)(e) cont. Section 9-717. Rights Reserved to the City; Resolution of Disputes. (1) 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. (2) Franchisee Agrees to City's Rights. The City reserves every right and power which is required to be reserved or pro- vided 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. (3) City's_,Right__to_In,tex-ven.ti-on.—The-City--shall-,have---the right to intervene and the Franchisee specifically agrees by its acceptance of the Franchise not to oppose such intervention by the City in any suit or proceeding to which the Franchisee is a party. (4) Powers of the City. Neither the granting of any nor any provision governing the Franchise shall constitute a waiver or bar to the exercise of any right of power of the City. (5) Administration of Franchise. Subject to the control and direction of the City Council, the City Manager of City, or City A86- Section 9-717 r r Manager's designee, shall be the designated administrator respon- sible for the continuing administration of the Franchise. (Subsection 5 added by Ord. 1670, 1/6/86) (6) Resolution of Disputes and Appeal Procedures. The City may do all things which are necessary and convenient in the exer- cise 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 -appal may -be taken t� 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 ordi- nance. The decision of the City Council shall be final. (7) City's Transfer of Functions. Any right or power con- ferred, or duly 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. (Former Subsections 5 & 6 renumbered 6 & 7 by Ord. 1670, 1/6/86) A87- Section 9-717(5) cont. Section 9-718. Enforcement. (1) Failure to Enforce Provisions. The Franchisee shall not be excused from complying with any of the terms and conditions of the Franchise by any failure of the City upon one or more occa- sions to insist upon or to seek compliance with any such terms or conditions. (2) 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 be reimbursed to the City by the Franchisee. Such costs shall include filing fees, costs of depositions, discovery, and expert witnesses, all other expenses of suit, and a reasonable attorney's fee. (3) Letter of Credit. (a) At the time this Franchise Section becomes effec- tive, Franchisee shall provide an effective_irrevocable Letter of Credit in a form and manner acceptable to City and maintain at all times through the term of this Franchise, such Letter of Credit in the amount of Fifty Thousand and 00/100 Dollars ($50,000) as a common security fund for the faithful performance by it of all the provisions of this Franchise and compliance with all orders, permits and direc- tions of City and the payment by Franchisee of any claim, liens and taxes due City which arise by reason of the construction, operation or maintenance of the CATV System. A88- Section 9-718 r 1 The City may utilize the Letter of Credit to obtain an appropriate amount as authorized by this Section 9-718 from after thirty (30) days notice of default of any Franchise provision has been given to Franchisee by City. City reserves the right, in its sole discretion, to reduce the required amount of the Letter of Credit. (b) If Franchisee fails to pay to City any taxes due and unpaid; or, fails to repay to City, any damages, costs or expenses which City shall be compelled to pay by reason of any act or default of the Franchisee in connection with this Franchise; or fails, after thirty (30) days notice of such fad -lure -by -City to comply wit-h--any-prov-rs-rorr-of-the-FraIjLytise which City reasonably determines can be remedied by an expen- diture of the security, City may then seek to draw on the Letter of Credit required by this Section to obtain such funds. (4) Penalties. In addition to any other remedies provided in this Franchise, penalties for violations of this Franchise are set forth below. In the event that the violations iden- tified below occur and are not corrected by Franchise within the time periods specified in paragraphs A -H below, the penalties may be greater than the sums delineated herein and the penalties stated below shall not be deemed the exclusive remedy of City. As a result of any acts or omissions by Franchisee pursuant to the Franchise, City may charge to and collect from the Franchisee, R89 - Section 9-718(3)(a) cont. by drawing on thge Letter of Credit set forth in Section 9-718 (3), or otherwise, the following penalties: (a) For failure to complete CATV System construction in accordance with the Franchisee's initial construction plan or any Upgrade and Rebuild Plan approved by Franchisee and City, unless City approves the delay, the penalty shall be Two Hundred Dollars ($200.00) per day for each day, or part thereof, such failure occurs or continues. (b) For failure to provide, after ten (10) days notice, data, documents, reports or information or to cooperate with the City during a renewal process, CATV System Evaluation and Renegotiation Session, or in the conduct of City's Franchise enforcement and administration functions, the penalty shall be Fifty Dollars ($50.00) per day. (c) For failure to comply with any of the provisions of this Franchise after ten (10) days notice, for which a penalty is not otherwise specifically provided, the penalty shall be Fifty Dollars ($50.00) per day. (d) For failure to test, analyze and report on the per- formance of the CATV System following a request by the City as set forth in this Franchise and after ten (10) days notice, the penalty shall be Fifty Dollars ($50.00) per day. (e) For failure by Franchisee to modify the CATV System or to provide additional services within the time required by the City following a periodic Evaluation and Renegotiation 490 - Section 9-718(4) cont. 1 r L Session, the penalty shall be Two Hundred Dollars ($200.00) per day. (f) For failure of Franchisee to comply with the construction, operation or maintenance standards thirty (30) days following notice from the City, the penalty shall be Two Hundred Dollars ($200.00) per day. (g) For failure to provide, after ten (10) days notice, the services Franchisee proposed pursuant to any renewal pro- posal or pursuant to the broad categories of service required by this Franchise, the penalty shall be One Hundred Dollars ($100.00) per day. (h-)- For- fa ilu-re o-comply-wi tfi a11--co-ndtt ions -of -City permits to disturb streets, fix streets, or other terms or conditions of City, the penalty shall be Fifty Dollars ($50.00) per day. (i) For failure to comply with any term or provision set forth in the Acceptance and Capital Commitment Agreement between the City and Franchisee dated January, 1986, the penalty shall be Two Hundred Dollars ($200.00) per day. (j) City, in its sole discretion, may stay or waive the imposition of any penalties set forth above upon its finding that such failures or delays are a result of acts of God or circumstances beyond the reasonable control of Franchisee. (5) Procedure for Imposition of Penalties. Whenever City finds that Franchisee has violated one (1) or more terms, con- R91- Section 9-718(4)(e) cont. ditians or provisions of this Franchise, a written notice shall be given to Franchisee informing it of such violation or liabi- lity. Franchisee may, within ten (10) days of notice, notify City that there is a dispute as to whether a violation or failure has, in fact, occurred. Such notice by Franchisee to City shall specify with particularity the matters disputed by Franchisee. (a) City shall hear Franchisee's dispute at a regularly scheduled meeting of the City Council. City shall supplement the decision with written findings of fact. (b) Upon a determination by City that a violation or liability exists, City may draw appropriate sums on the Letter of Credit. Franchisee shall pay all costs associated with hearings to the extent allowable under applicable law. (c) The security fund deposited pursuant to this Franchise shall become the property of City in the event that the Franchise_...is..,cancelled by ,reason._of_ the—default of Franchisee or revoked or terminated for cause. Franchisee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit at the expiration of the term of the Franchise, or upon termination of the Franchise at an earlier date, provided that such ter- mination is not cause and there is then no outstanding default on the part of Franchisee. (d) The rights reserved to City with respect to the security fund are in addition to all other rights of City h92 - Section 9-718(5) cont. 1 whether reserved by this Franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right City may have. (Subsections 3, 4 & 5 added by Ord. 1670, 1/6/86) f}93- Section 9-718 (5) (d) cont. Section 9-719. Right of Amendment Reserved to City. The Franchisee recognizes the right of the City to make reasonable amendments 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. 494- Section 9-719 1 1 i r Section 9-720. Renewal. (1) Renewal Process. (a) During the six-month period which begins with the 36th month before the Franchise expiration, the City may on its own initiative, and shall at the request of the Franchisee begin to conduct a franchise renewal process established by the City consistent with this section. The City shall, at a minimum, commence proceedings in a manner determined by City to consider renewal of the Franchise. Such proceeding shall afford the public appropriate notice and participation for the purposes of: (1) - idemrtfying—tht future' cable=related "community needs and interests; and (2) reviewing the performance of the Franchisee under the Franchise during the then current Franchise term. (b) Upon completion of a proceeding under subsection (a), the Franchisee seeking renewal of the Franchise may, on its own initiative or at the request of City, submit a pro- posal for renewal. Any such proposal shall be pursuant to a Request for Proposal prepared by City and on forms prepared by City and shall contain such material as the City may require, including proposals for an upgrade of the cable system. The City may establish a date by which such proposal shall be submitted. A95- Section 9-720 (c) Upon submittal by a cable operator of a proposal to the City for the renewal of a Franchise, the City shall pro- vide prompt public notice of such proposal and, during the four-month period which begins on the completion of any pro- ceedings under subsection (a), renew the Franchise or, issue a preliminary assessment that the Franchise should not be renewed and, at the request of the Franchisee or on City's own initiative, commence an administrative proceeding, after providing prompt public notice of such proceeding, in accor- dance with paragraph (2) to consider whether: (1) the Franchisee has substantially complied with the material terms of the existing Franchise and with applicable law; (2) the quality of the Franchisee's service, including signal quality, response to consumer complaints„and,, billing-practices,._has_been_reasonable in light of community needs; (3) the Franchisee has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in the Franchisee's proposal; and (4) the Franchisee's proposal is reasonable to meet the future cable -related community needs and interests, taking into account the cost of meeting such needs and interests. R96 - Section 9-720(1)(c) 1 4 i (d) In any proceeding under paragraph (1), the Franchisee shall be afforded adequate notice and the Franchisee and the City shall be afforded fair opportunity for full participation, including the right to introduce evi- dence (including evidence related to issues raised in the proceeding under subsection (a)), to require the production of evidence, and to question witnesses. A transcript shall be made of any such proceeding. (e) At the completion of a proceeding under this sub- section, the City shall issue a written decision granting or denying the proposal for renewal based upon the record of such—proceeding, an-d--tra-rrsmrt-a�cowy of`such—decision to the Franchisee. Such decision shall state the reasons therefor. (f) Any denial of a proposal for renewal shall be based on one or more adverse findings made with respect to the fac- tors described in subparagraphs (1) through (4) of subsection (c), pursuant to the record of the proceeding under subsec- tion (c). (g) Franchisee shall reimburse City for all of City's costs, including consultant and attorney's fees, incurred in conjunction with consideration of a Franchise renewal prior to the effectiveness of a renewal Franchise. (2) Renewal Proposal. Notwithstanding the provisions of subsections (1) above, Franchisee may submit a proposal for the renewal of this Franchise pursuant to this subsection (a) at any A97 - Section 9-720(1)(d) time,. and City may, after affording the public adequate notice and opportunity for comment, grant or deny such proposal at any time. The provisions of subsection (1) of this section shall not apply to a decision to grant or deny a proposal under this sub- section (2). The denial of a renewal pursuant to this subsection shall not affect action on a renewal proposal that is submitted in accordance with subsection (1). (3) Preliminary Capital Commitment Agreements. In addition to any requirements of City or offering of Franchisee which may result from any Franchise renewal proceeding, Franchisee hereby offers and commits to, at a minimum, no later than the last day after the second full Construction Season, defined as April 15 through November 15 of any given calendar year, after the grant of any renewal of the Franchise, the following: (a) Franchisee shall have in operation a 400 MHz, fully activated 54__channe1 system; (b) Franchisee shall activate full one-way addressabi- lity throughout the cable system and provide to each subscriber a one-way addressable converter for each drop; (c) Franchisee shall have in operation a stand-by power system for its cable system head -end; (d) Franchisee shall have in operation one additional satellite dish attached to its cable system head -end to receive additional satellite signals; (e) Franchisee shall offer and commit facilities and A98 - Section 9-720(2) cont. r 1 1 equipment approved by City in support of public access of a value of no less than fifty thousand dollars ($50,000.00); (Subsections 1, 2 & 3 added by Ord. 1670, 1/6/86) &99 - Section 9-720(3)(e) cont. (Former Section 9-720 renumbered to 9-721 and amended by Ord. 1670, 1/6/86) Section 9-721. Expiration or Revocation of Franchise. (1) Expiration; Extended Operation. Upon 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. All provisions of the Franchise shall continue to apply to operations during an extension period. The City shall serve written notice at the Franchisee's business office of intent to extend under this sec -tion at least 30 days prior to expiration. (2) Grounds for Termination or Revocation. The City reser- ves the right to terminate or revoke any Franchise and all rights and privileges pertaining thereto in the following circumstances: (a) Franchisee substantially violates any provision of the Franchise; (b)-Ig---a-petition is----f-Med-aby or -against -the--Franchisee under the Bankruptcy Act, or any other insolvency or credi- tors' rights law, state or federal and the Franchisee shall fail to have it dismissed within 90 days; (c) If a receiver, trustee or liquidator of the Franchisee is applied for or appointed for all or part of its assets; (d) If the Franchisee becomes insolvent or makes an assignment for the benefit of creditors; (e) If any court of competent jurisdiction, the FCC, or r�100- Section 9-721 any state regulatory body by rule, decision, or other action determines that any provision of unenforceable, in the opinion of the Franchise being material and the granting and the continuance the Franchise is invalid or the City all provisions of essential provisions both to of the Franchise, without which the City would not have granted the Franchise. This provision (e) shall not apply when and after the Franchisee has commenced construction under 9-713(2). (f) Franchisee attempts to evade any provisions of the Franchise; or (g) Franchisee practices any fraud or deceit upon the City. - (3) 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 and allowing that thirty (30) day opportunity to remedy the occurrence, find such facts and set a reasonable additional time in which the Franchisee must remedy the occurrence. Written notice shall be given of the decision by the Council. If the Franchisee fails to remedy within the time specified, the Council may revoke or ter- minate the Franchise after public hearing by repeal of the ordi- nance. The repeal ordinance shall be effective not more than six months after its adoption. (4) Injunctive Relief. Pending final disposition of pro- 6101- Section 9-721(2)(e) cont. ceedings to revoke a Franchise, or during a period of extension of a Franchise after expiration, the City may obtain injunctive relief to obtain complaince with the provisions of the Franchise and maintain the continuity of service to subscribers. Such relief shall be in addition to and not in lieu of other remedies available to the City. (5) Right of City to Purchase; Disposition of Facilities. Upon expiration of the term of the Franchise, or upon receipt of application for approval of an assignment of the Franchise or upon change of control as set forth in Sections 9-703 (5) and (6), or if renewal of this Franchise is denied the City shall have the right to acquire the CATV System. Any such acquisition or transfer shall be at fair market value, determined on the basis of the CATV System valued as a going concern but with no value allocated to the Franchise itself and shall be made pursuant to the provisions of -Sect -tons -9-721 (8) -and -(9) below. --If.-the Franchise held by Franchisee is revoked or terminated for cause and the City determines to acquire ownership of the CATV System or effects a transfer of ownership of the CATV System to another person, any such acquisition or transfer shall be at an equitable price. (6) 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 0102- Section 9-721(4) cont. S i r 1 property of the CATV System 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, pledge, sale, pole agreement, or any other agreement con- cerning any of the facilities or property, real or personal, of the CATV System, where such transaction would be inimical to the rights of the City under any Franchise if consummated without adherence to the provisions of Subsections (a) and (b): (a) Without the express approval of the City, which shall--not-be- unreasonably-wifnneld;- and - (b) 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 provi- sion. The City may require such written assent to be con- tained 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 A103- Section 9-721(6) cont. Council shall determine what transactions may be inimical to the rights of the City. (Subsections 1 - 6 amended by Ord. 1670, 1/6/86) (7) Sale or Transfer of Franchise. (a) This Franchise shall not transferred, either in whole or in mortgaged in any manner, nor shall be sold, assigned or part, or leased, sublet or title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person nor shall any fun- damental corporate change, as defined by Minnesota Statutes, be made without prior written approval of City and full compliance with the procedure set forth in this section. This section shall include sale or transfer of all or a majority of a corporation's assets, merger (including any parent and its subsidiary corporation), consolidation, creation of a subsidiary corporation a fundamental corporate change _ or sale_.or—transfer of stock in a_.corpora.tion-so_•as to create a new controlling interest in the CATV System. The term "controlling interest" as used herein is not limited to a majority stock ownership but includes actual working control in whatever manner exercised. (1) The parties to the sale or transfer of this Franchise shall make a written request to the City for its approval of a sale or transfer of this Franchise. (2) City shall reply in writing within thirty (30) days of the request and shall indicate approval of the 1 i }104- Section 9-721 (6) (b) cont. request or its determination that a public hearing is necessary due to potential adverse effect on the Company's subscribers or to consider City purchase of the CATV System. (3) If a public hearing is deemed necessary pur- suant to (2) above, such hearing shall be commenced within thirty (30) days of such determination and notice of such public hearing shall be given pursuant to Minnesota law. (4) Within thirty (30) days after the public hearing, the City shall approve or deny in writing the s-a1e or—trans-f-e-r--rearrest;- and—dete-z,ri-ne--wh ttto exercise its first right of refusal to purchase CATV System. If City determines to purchase System pursuant to Section 9-721(8) below, City and Franchisee shall make every effort to complete such transactions within One Hundred Eighty (180) days after such determination. Approval pursuant to this Section shall not be unreason- ably withheld and any sale or transfer of CATV System shall be completed pursuant to Minnesota Statutes Section 238.083. (5) The City and Franchisee shall submit documen- tation to the Minnesota Commissioner of Commerce cer- tifying that this Franchise and the transfer request review process followed conform to Minnesota Statutes A105- Section 9-721 (7) (a) (2) cont. Chapter 238. (6) Franchisee, upon transfer approved by City, shall within sixty (60) days thereafter file with the City a copy of the final deed, agreement, mortgage, lease or other written instrument evidencing such sale, transfer of ownership or control or lease, certified and sworn to as correct by the Franchisee. (7) City reserves the right, upon request for approval of a sale or transfer to impose an acceptance fee, in its sole discretion, upon the Franchisee or per- son or entity to whom a sale or transfer is made, as is then legally allowed. (b) In reviewing a request for sale or transfer pur- suant to Section A above, the City may inquire into the qualifications of the prospective controlling party, and Franchisee , shall,...ass.ist._t.he City.in_soe..inqu.ix_in.g..__....The—City may condition said transfer upon such terms and conditions as it deems appropriate. In no event shall a transfer or assignment of ownership or control be approved without the transferee becoming a signator to this Franchise. (8) City Right to Purchase System Upon Receipt By Franchisee of a Bonafide Offer. In addition to and in conjunction with Sections 9-721(5)(6) and (7) above, City shall be entitled to a right of first refusal of any bonafide offer to purchase the CATV System made to Franchise. Bonafide offer as used in this R106 - Section 9-721 (7) (a) (5) cont. r f Section means an offer received by Franchisee that it intends to accept. In the event City decides to purchase pursuant to this Section, the price shall be at fair market value determined on the basis of the CATV System value as a going concern but with no value attributed to the Franchise itself. In the event that the bonafide offer which Franchisee intends to accept is either cash or cash payable over a period of time, fair market value shall be the net present value of the bonafide offer. Fair market value may, at City's election, be deemed to be the bona- fide ona-fide offer. (9) Procedures for Exercise of First Right of Refusal. In the event City elects to exercise its right -td purchase -the CATV System as provided in this Franchise, the following shall then apply: (a) City and Franchisee shall negotiate all terms and conditions of the purchase of the CATV System. (b) If City and Franchisee cannot agree upon the terms and conditions of the purchase, City shall have the right to proceed to arbitration. Arbitration shall commence and proceed according to the Rules of the American Abitration Association and applicable Minnesota law except as follows: (1) The parties shall, within fifteen (15) days of City's decision to proceed to arbitration, appoint one arbitrator each who is experienced or knowledgeable in 4107 - Section 9-721(8) cont. the field of cable communications systems and purchase and valuation of business property. Arbitrators shall each agree upon the selection of a third arbitrator, similarly qualified, within fifteen (15) days after appointment of second arbitrator. (2) Within thirty (30) days after appointment of all arbitrators and upon ten (10) days written notice to parties, the arbitrators shall commence a hearing on the terms and conditions of the purchase in dispute. (3) The hearing shall be recorded and may be transcribed at the request of either party. All hearing proceedings, debates and deliberations shall be open to the public and at such times and places as contained in the notice or as thereafter publicly stated in the order to adjourn. (4 )_ The arb_itr_ation__panel shall be__required, _to determine the purchase price of the CATV System according to the standards established in Section 9-712(6) above. (5) At the close of the hearings and within thirty (30) days, the arbitrators shall prepare written find- ings and make a written decision agreed upon by a majority of the arbitrators which shall be served by mail upon City and Franchisee. (6) The decision of a majority of the arbitrators a108- Section 9-721 (9) (b) (1) cont. 1 r L shall be binding upon both parties except that City may, in its sole discretion and without any penalty or cost to City of any kind, withdraw its offer to purchase within ninety (90) days of receipt of the_final decision of a majority of the arbitrators. (7) Either party may seek judicial relief to the extent authorized under Minnesota Statutes, M.S.A. 572.09 and 572.19 as the same may be amended, and, in addition, under the following circumstances: (A) A party fails to select an arbitrator; (B) The arbitrators fail to select a third arbitrator; - (C) One or more arbitrator is unqualified; (D) Designated time limits have been exceeded; (E) The arbitrators have not proceeded expeditiously; or (F) Based upon the record, the arbitrators abused their discretion. (8) In the event a Court of competent jurisdiction determines the arbitrators have abused their discretion, it may order the abritration procedure repeated and issue findings, orders and discretions, with costs of suit to be awarded to the prevailing party. (9) cost of arbitration shall be borne equally. (c) Franchisee expressly waives its rights, if any, to /9109 - Section 9-721 (9) (b) (6) cont. relocation costs that might otherwise be provided by law. (d) The date of valuation shall be no later than the date City makes a written offer for the CATV System. (Subsections 7, 8, 9 added by Ord. 1670, 1/6/86) (10) Restoration of Property Removal. 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 Section 9-708 and the security for performance provided in Section 9-707 shall continue in full force and effect during the period of removal. Upon termination or forfeiture of Franchise, Franchisee shall remove its cable, wire and appliances and all other components at CATV System from the streets, alleys, and other public places within City, if City so requests. The City shall have a right to all available remedies, including drawing on Franchisee's Letter of Credit required by Section 9-718(3) of this Franchise, in order to enforce the requirements of this Section 9-721(10). (Former Subsection 7 renumbered 10 and amended by Ord. 1670, 1/6/86) Section 9-721 (9) (b) (9) cont. r Section 9-722. Abandonment. Franchisee may not abandon the CATV System without having first given three (3) months written notice to the City having first been approved by the City after reaso- nable opportunity to review. Upon showing by Franchisee of need for abandonment and an opportunity for the City to determine other areas for the continuity of service, the City shall eva- luate any damage, claim or loss that may be applicable as a con- sequence of such abandonment. In order to accomplish this, the City shall conduct a public hearing after providing reasonable notice to all affected persons as to the date, time and place of the hearing. Thereafter, before abandonment occurs, the City s -h a4-1— no t i y—the—F r -a n e rs c -c of i t-s—d a r:ir+-rta-i-i-e;r--arrd—of —a rry—p e -r - son, firm or corporation, including City entitled to damages and the amount and basis therefor. Franchisee may not abandon a cable communications service without compensating City for damages resulting to it from the abandonment. (Section 9-722 added by Ord. 1670, 1/6/86) A111- Section 9-722 Section 9-723. Unauthorized Connections. It shall be unlawful for any person to make an unauthorized connection, whether physi- cally electrically, acoustically, inductively or otherwise, with any part of a franchised broadband telecom-munications network within the City for the purpose of taking or receiving television signals, radio signals, pictures, programs, or sound. (Former Section 9-721 renumbered 9-723 by Ord. 1670, 1/6/86) 4112 - Section 9-723 41 1 r i Section 9-724. Citizens Cable Advisory Committee. There is hereby established as an advisory committee to the City, a Citizens Cable Advisory Board. (1) Composition. The committee shall be composed of citizen volunteers as appointed by the City Council with their discipli- nes and numbers being determined by the City. (2) Purpose. The committee shall be responsible for recom- mending to the City Council programs for stimulating and pro- moting public interest and participation in the educational, public access and local origination channels and shall be further responsible for recommending procedures for the utilization of these-chann-el-s. In` addition; the committee- shall -advise and -make recommendations as requested by the City Council on specific mat- ters affecting the broadband telecommunications network within the City including its future inter -connections with surrounding communities. (Former Section 9-722 renumbered 9-724 by Ord. 1670, 1/6/86) A113- Section 9-724 Section 9-725. Application for a Franchise. Applications for a franchise shall be filed with the City clerk in accordance with instructions promulgated by the City and shall contain the following information and provisions: (1) The name and business address of the applicant, date of application and signature of applicant or appropriate corporate officer. (2) Payment of the required filing fee. (3) Bid bond in the amount of $25,000 either as a cash deposit or as a certified check. (4) 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 telecommuoi_oatio.ns—network. (5) A general description of the applicant's proposed opera- tion, including a description of the proposed service area. (6) A statement of the television and radio services pro- posed, including both off -the -air and locally originated signals. (7) A statement setting forth a description of the televi- sion channels and programming 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. A114 - Section 9-725 (8) A statement of the applicant's proposed schedule of charges. (9) A statement detailing the corporate organization of the applicant, if any, including the names and addresses of its offi- cers and directors and the division of shares between shareholders. (10) A statement describing all intra -company relationships of the applicant including parent, subsidiary or affiliated companies. (Former Section 9-723 renumbered 9-725 and amended by Ord. 1670, 1/6/86) A115 - Section 9-725(8) Section 9-726. 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. (Former Section 9-724 renumbered 9-726 by Ord. 1670, 176/86) A116- Section 9-726 r 1 Section 9-727. Severability. Subject to the provisions of Section 9-720 (1) (e), if any section, subsection, sentence, clause or phrase of the Franchise Ordinance, or of this ordinance is determined to be illegal, invalid or unenforceable by any court of body, by competent jurisdiction, the FCC, rule, decision, or other action, or any state regulatory 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 required of the Franchisee. (Former 9-725 renumbered 727 by Ord. 1670, 1/6/86) Section 9-727 Section 9-728. Short Title. The ordinance shall be known and may be cited as the "Cable Regulation Ordinance." (Former Section 9-726 renumbered 728 by Ord. 1670, 1/6/86) R118- Section 9-728 1 1 1 f L Cable Television Granting Ordinance Section 9-751. Purposes. The City has determined that it is desirable and to the advantage of the citizens of St. Louis Park to grant a broadband telecommunications network franchise. During the course of full public proceedings including prolonged investigation and extended public hearings which afforded reason- able notice and a reasonable opportunity to be heard, the City Council has considered the needs of the City and the technical ability, financial condition, legal qualification, experience, capability, qualifications, character and reputation of the various applicants, as well as the adequacy and feasibility of their -construction arrangements -"and-their plans for programming. As a result, the City Council finds it is in the public interest to grant a franchise to the company. (Section 9-751 amended by Ord. 1670, 1/6/86) A119- Section 9-751 Section 9-752. Grant of Franchise. Pursuant to the provisions of Ordinance No. 1197 and pursuant to the charter of the City of St. Louis Park, a non-exclusive franchise is granted to Storer Cable for the right and privilege of constructing, operating and maintaining in, on, over, under and across the streets, alleys, sidewalks, driveways--end--ptH 1-ic grams--end-pi-aces--Of--tire--'Eit-y-a broadband telecommunications network, including all poles, pole lines, conduits, fixtures and appurtenances, for the purpose of the transmission of CATV and other services, electrical impulses of television, radio and other intelligences, either analog or digital, and for private and public use in and to the City and its residents. The terms of this Franchise shall include the provisions of Ordinance 1197 as amended, "An Ordinance Setting Forth Terms and Conditions for the Installation, Maintenance and Operation of the Broadband Telecommunications Network (BTN) for the transmission of CATV and Other Intelligences, Either Analog or Digital, for Sale or Use by Inhabitants of the City of St. Louis Park, Minnesota." (Section 9-752 amended by Ord. 1670, 1/6/86) (Sections 9-753, 9-754 and 9-755 deleted by Ord. 1670, 1/6/86) A120 - Section 9-752 1 • 1 r Section 2. Violations and Penalty. Any person violating any provision of this ordinance shall be found guilty of a misdemeanor and penalized as defined in Section 2-203 of the St. Louis Park Ordinance Code. Section 3. Effective Date. This ordinance shall take effect 15 days after its publication (January 28, 1986 effective date). Adopted by the City Council January 6, 1986. viewed for administration: y Manager Approvedas_to_form �egality: � City ttor ey 121 Minnesota Suburban Newspapers, Inc. AFFIDAVIT OF PUBLICATION *TATE OF MINNESOTA) ss COUNTY OF HENNEPIN) Donald K. Mortenson , being duly sworn on an oath says that he/she is the publisher or authorized agent and employee of the publisher of the newspaper known as St. Louis Park Sailor , and has full knowledge of the facts which are stated below (A) The newspaper has complied with all of the requirements constituting qualification as a qualified newspaper, as provided by Minnesota Statute 331A 02, 331A 07, and other applicable laws, as amended (B) The printed Ordinance No.1670-86 which is attached was cut from the columns of said newspaper, and was printed and published once each week, for one successive weeks, it was first published on Monday , the 13 day of January , 19 8 6 and was thereafter printed and published on every to •nd including , the day of 19—, and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice abcdefghilklmnopgrstu% Subscribed and sworn to before me on this n116 day of Jan , 19 8 6 Awa zila_tt_e-ii No ry P`' MERIDEL M. HEDBLOM NOTARY PUBLIC • MINNESOTA HENNEPIN COUNTY My commission expires July 2, 1986 BY 477-41 TITLE Operations Manager RATE INFORMATION (1) Lowest classified rate paid by commercial users for comparable space (2) Maximum rate allowed by law for the above matter (3) Rate actually charged for the above matter 210 per line (Line, word, or inch rate) 36.5e per line (Line, word, or inch rate) 35C per line (Line, word, or inch rate) (Official Publication) Summary ORDINANCE NO 1870-86 AN ORDINANCE AMENDING THE CABLE REGULATION ORDINANCE Summary This ordinance amends the cable regulation ordinance to con- form with State and Federal require- ments and establishes new provisions pertaining -to consumer protection, technical standards and enforcement of the franchise Effective Date This ordinance shall take effect 15 days after Its publication Adopted by the City Council January 6, 1988 (8) LYLE HANKS Mayor A copy of the full text of this or- dinance is available for inspection with the City Clerk (Jan 13, 1986) -SLP