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HomeMy WebLinkAbout1774-89 - ADMIN Ordinance - City Council - 1989/02/06JEt3RUARY 6, 1989 8b ORDINANCE NO. 1774-89 AN ORDINANCE GRANTING A FRANCHISE RENEWAL FOR THE OPERATION OF A CABLE TELEVISION SYSTEM IN ST. LOUIS PARK, ST. LOUIS PARK MUNICIPAL CODE, PART 7 - CABLE TF•LEVISION THE CITY OF ST. LOUIS PARK DOES ORDAIN: Section 1. Sections 9-701 through 9-752 of the St. Louis Park Municipal Code are hereby replaced with Sections 9-701 through 9-733 as attached: 1 CITY OF ST. LOUIS PARR CABLE COMMUNICATIONS FRANCHISE ORDINANCE 4 J PART 7 - Cable Television INDEX Section PURPOSES Page No. 9-701 Granting Ordinance; Purposes 1 SHORT TITLE & DEFINITIONS 9-702 Short Title 2 9-703 Definitions 2 GRANT OF AUTHORITY AND GENERAL PROVISIONS 9-704 Application for a Franchise f 10 9-705 Grant of Franchise 12 9-706 Franchise Required 13 9-707 Privileges and Obligations Under the Franchise Ordinance 14 (1) Agreement 14 (2) Pole Space Obligation 14 (3) Privileges Must Be Specified . . . 14 (4) Privileges Subordinate 15 (5) Consent to Transfer 15 (6) Previous Rights Abandoned 18 (7) Subject to Other Rules and Regulations 19 (8) Costs 19 (9) Notices 20 9-708 Duration of Franchise 21 -1- 9-709 Franchise Payment 23 (1) Payment to the City 23 (2) Method of Computation; Interest. . 23 (3) Verification and Inspection of Records 24 (4) Rights of Recomputation 25 (4) Late Payments 25 INDEMNIFICATION, INSURANCE LETTER OF CREDIT & BONDS 9-710 Security for Performance 26 k (1) Performance Bond 26 (a) Terms of Bond 26 (b) Delays in Performance 28 (2) Letter of Credit 28 (3) Rights Reserved to City 30 9-711 Liability Insurance and Indemnification,_ 31 (1) Public Liability Insurance 31 (2) Review of Coverage 35 (3) Indemnification 1 35 THE CABLE SYSTEM 9-712 System Capability; Facilities 41 (1) System Rebuild 41 (2) Reverse Signal Transmission Capability 42 (3) Rebuild of Facilities, Equipment & Service 43 (4) Emergency Power 43 -ii- J (5) Business Office -44 (6) Emergency Capability and Use . . . ▪ 44 (7) Studio Facilities; Personnel . . . ▪ 44 (8) Continuous Operation 46 (9) Computer Access 46 9-713 Construction and Technical Standards. . • 47 (1) Compliance with Construction and Technical Standards 47 (2) Performance Tests and Certification47 (3) Additional Specifications 48 (4) Measurements Used in Performance Tests 50 9-714 Subscriber Network 51 (1) Basic Cable Service Channels . . . ▪ 51 (2) Specially Designated Public, Educational, Governmental and Leased Access Channels 52 (3) Charges for_ _Use__of_Public Access Channels 53 (4) Channel Capacity Expansion 54 (5) Access Channel Rules 54 (6) Reduction of Channel Capacity. . . • 55 (7) Access Equipment Available 56 (8) Additional Channels for Commercial Use 57 (9) Local Origination Programming. . . . 57 9-715 Interconnection and Institutional Network 59 (1) Interconnection 59 -iii- / (2) Institutional Network Committee. . . 59 (3) Institutional Network In Lieu of SLP I -Net Committee's Plan. . . 61 (a) Channel Capacity 61 (b) Coverage 62 (c) Completion 62 (d) Equipment Provided 62 (e) Service Provided 63 (4) Institutional Network Plan 63 9-716 System Construction Requirements & Installation Schedule 64 (1) System Rebuild and System Upgrade. 64 (2) Permit Application 64 (3) System Rebuild Timetable 65 (4) System Upgrade Timetable 67 (5) Continuation of Service 69 (6) Time l.s 6f -the -Essence -70 (7) Delays and Extensions of Time. . . 70 (8) Failure to Complete 71 (9) Early Construction 72 (10) Line Extension Policy 72 (11) Public Relations During Construction and Installation 72 (12) City's Reservation of Rights . . . 72 -.iv- 1 4 1 SYSTEM OPERATION 9-717 Fees, Rates and Charges 74 (1) Basis; Approval 74 (2) Rate Schedule 74 (3) Notice of Rate Change 74 (4) Service Calls 75 9-718 Conditions of Public Property Occupancy ▪ 76 (1) Approval of Proposed Construction. • 76 (2) Excavation Permits 76 (3) Changes Required by Public Improvements 76 (4) Interference with or Hazard to Persons and Improvements 77 (5) Method of Installation 78 (6) Protection of Facilities 79 (7) Notice of City Improvements 79 (8) Compliance with Codes 80 (9) Moving Wires 80 (10) Trimming Trees 80 (11) Restoration to Prior Condition. . • 81 (1 2) -Maintenance of SystAn - 82 (13) Efficient Service and Repairs . . . 82 (14) Interference with Reception . . . 82 (15) Record of Equipment and Facilities to be Maintained 82 9-719 Operation of the Franchise/Consumer Protection 83 -v- (1) Consumer Service Policies 83 (2) Consumer Complaints 83 (3) Repairs and Maintenance 84 (a) Maintenance of the System . . ▪ 84 (b) Interruption of Service . . . ▪ 84 (c) Service Response and Rebate . ▪ 84 (4) Reports, Books and Records of Company 86 (a) City's Right' to Audit 86 (b) Report on Operations 86 (c) Report on Complaints 87 (d) Records and Property Available for Inspection 87 (e) Report on Channel Use; Notice • 88 (f) Annual Report 88 (5) Filing Communications with -Regulatory-Agencies -90 (6) Plan Filed 90 (7) Rules of the Company 91 (8) Approval of Service Contract . . . • 91 (9) Company Assistance in Developing --Ptrb +c -Uses (10) Preferential or Discriminatory Practices Prohibited 92 (11) Subscriber Privacy 94 (12) Ownership Interests Prohibited. . ▪ 99 (13) Periodic Evaluation and Renegotation Sessions 99 (14) Annual Opinion Survey 104 (15) Technical Inspections & Evaluations 106 -vi- 1 4 1 9-720 Rights Reserved to the City; Resolution of Disputes 109 No Impairment of Eminent Domain. . • 109 Company Agrees to City's Rights. . • 109 City's Right to Intervention . . . • 109 Powers of the City 110 (6) (7) Administration of Franchise Ordinance Resolution of Disputes & Appeal Procedures City's Transfer of 9-721 Enforcement (1) (2) (3) (4) Procedure for Penalties (5) Other Rights, Functions . . . . Failure to Enforce Contravention Provisions. . . . of Franchise Ordinance Penalties Imposition of Including Revocation, Reserved 9-722 Right of Amendment Reserved to City . . . 110 110 110 112 112 112 112 115 116 117 9-723 Renewal 118 (1) Extension Process 118 (2) Reiiewa1 Process —11-8 (2) Renewal Proposal 122 (3) Upgrade Plan 123 9-724 Removal After Termination -vii- or Revocation . 125 REVOCATION/ABANDONMENT 9-725 Expiration or Revocation of Franchise . . 127 (1) Expiration; Extended Operation . . ▪ 127 (2) Grounds for Termination or Revocation 127 (3) Procedure Prior to Revocation. . . • 129 (4) Injunctive Relief 130 (5) Right of City to Purchase; Disposition of Facilities . . . . 130 (6) Transactions Affecting Ownership or Control ofl Franchise Ordinance Facilities 131 (7) City's Right to Purchase System Upon Receipt by Company of a Bona Fide Offer 132 (8) Procedures for Exercise of First Right of Refusal 133 (9) Restoration of Property Upon Removal136 9-726 Abandonment 138 OTHER 9-727 Unauthorized Connections 139 9-728 Severability; Applicable Laws & Court Decisions 140 9-729 Work Performed By Others 142 9-730 Administration & Advisory Body 143 (1) Administrator 1 143 (2) Advisory Body 143 (3) Delegation of Authority by City . . ▪ 143 -viii- 1 4 J 9-731 Time of Acceptance; Guarantee; Incor- poration of Offering; Exhibits . . . . 145 9-732 Interpretation by City of Franchise. . . . 148 9-733 Validity of Franchise 149 SECTION 9 - 701 GRANTING ORDINANCE; PURPOSES The City has determined that it is desirable and advantage- ous to the citizens of St. Louis Park to grant a CATV System franchise. During the course of prolonged investigation and public hearings which afforded reasonable notice and a reasonable opportunity to be heard, the City has considered the request of Company to renew an existing CATV franchise. In accordance with state and federal law requirements, the City has reviewed and found sufficient the Company's technical ability, financial con- dition, and legal qualifications to operate a CATV System in St. Louis Park. The City has analyzed Company's plans for rebuild, maintenance and operation of a CATV System in St. Louis Park as is set forth with more particularity in this Franchise Ordinance and found these plans to be adequate and feasible in view of the needs and requirements of the entire area to be served. The City therefore finds it is in the public interest to grant to Company a full and complete, nonexclusive franchise for a period of ten (10) years for the -_rebuild, operation and maintenance of a CATV System in St. Louis Park; provided, however, the franchise is subject to the terms and conditions set'forth in this Franchise Ordinance. SECTION 9 - 702 SHORT TITLE This Franchise Ordinance shall be known and may be cited as the "Cable Communications Franchise Ordinance," hereinafter "Franchise Ordinance", and it shall become a part of the ordi- nances and Legislative Code of the City of St. Louis Park. SECTION 9 - 703 DEFINITIONS In this Franchise 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 sin- gular number, and words in the singular number include the plural number. The words "shall" and "_will"___ar..e a1-ways_maada-bo-r-y--a-nd "may" is permissive. Words not defined shall be given their common and ordinary meaning. -2- (1) "Basic service" means all subscriber services provided by the Company including the delivery of public, educational and governmental access channels; and local broadcast signals; covered by a regular monthly charge paid by all subscribers, excluding optional services for which a separate charge is made. (2) "CATV System" is synonymous with "cable communications system" and means any wires, wave guides or other conductors, equipment or facilities designated, constructed or used for the purpose of transmission of electrical impulses of television, radio and other signals either analog or digital, directly or indirectly for sale or use by residents of the City. (3) "Cable Service" means subscriber services provided by I the Company, including, at the subscriber's election, services covered by the regular monthly'charge paid by all subscribers; subscriber services provided by the Company for which a special i charge is made (based on program or service content or time of usage); and converters, outlets and additional charges made for cable related services. (4) The terms "cable television channel" or "CATV channel" mean a frequency band 6 megahertz (MHz) in width within which a television broadcast signal is delivered by the CATV System to a subscriber. 1 (5) "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. (6) "City" means the City of St. Louis Park, Minnesota as it exists now and as its borders may from time to time be changed; including, without limitation, its officers, boards, commissions, elected officials, agents, attorneys, representa- tives, servants and employees. (7) "City Clerk" means the City Clerk of the City of St. Louis Park, Minnesota. (8) "City Manager" means the City Manager of the City of St. Louis Park, Minnesota. (9) "Class IV cable television channel" means a signaling path provided by the CATV System to transmit signals of any type from a subscriber terminal to another point in the CATV System. (10) "Company" means Nortel Cable Associates, L.P., the grantee of rights and obligations under this Franchise Ordinance, including, but not limited to, all subsidiaries, parents, or affiliate companies, _associations - r--- g ni zat4ens --h v-i-ffg- a n -y rights, powers, privileges, duties, liabilities or obligations, under this Franchise Ordinance; and all owners, affiliates, -4- successors, transferees, assignees, subcontractors, agents, . employees and representatives. (11) "Converter" means an electronic device which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber and, by an appropriate chan- nel selector, also permits a subscriber to view all authorized subscriber signals delivered 'at designated converter dial locations. (12) "Council" means the 'City Council of the City of St. Louis Park, Minnesota. (13) "Dedication" shall mean those rights-of-way main- tained for the benefit of the public and controlled by the City; the terms, conditions or limitations of which are not incon- sistent with the erection, construction or maintenance of a CATV System, its structures__or_equipment. (14) "Director of Public Works" means the Director of Public Works of the City of St. Louis Park, Minnesota. (15) "Easement" shall mean those rights-of-way owned by the City; the terms, conditions or limitations of which are not 1 inconsistent with the erection, construction or maintenance -Of a CATV System, its structures or equipment. (16) "FCC" means the Federal Communications Commission and any legally appointed, designated or elected agent or successor. -5- r IP 1 1 4 1 (17) "Franchise Ordinance" means the incorporated terms of this Cable Communications Franchise Ordinance, governing the operation of a CATV System within and throughout the City of St. Louis Park. (18) "Gross revenues" means all revenues received in connection with the operation of the CATV System governed by this Franchise Ordinance directly or indirectly by the Company, its affiliates, subsidiaries, parent or any other person in which the Company, as franchisee of this Franchise Ordinance, has a financial interest of five percent (5%) or more. Revenue would include, without limitation, all moneys received or derived from the following sources: basic subscriber service, monthly fees, fees for programming offered on a per -channel or per -program basis, installation and reconnection, leased channel fees, converter rentals, studio rentals, production equipment and per- sonnel fees, interactive and data/computer service fees, adver- tising revenues, and other services offered over the CATV System. (19) tem from equipment "Installation" means the connection of the CATV Sys - feeder cable to a subscriber's premises, including necessary for reception of signals from the CATV—Sys- tem, exclusive of a television or radio receiver. (20) "Institutional Network" means an interactive two-way communications system in the City, separate and distinct from the subscriber network and providing institutional services to a variety of institutions including, without limitation, the City and its various departments and offices, public schools, hospitals, libraries, public � works departments and' other institutions, municipal, county or state. (21) "Interconnection" means use of microwave, satellite, coaxial cable, optic fiber or other apparatus on equipment for the transmission and distribution of signals between two or more CATV Systems for mutual distribution of programming. (22) "MHz" means megahertz. (23) "Pay TV" means origination or access cablecasting operations for which a per -program or per -channel charge is made to subscribers. (24) "Person" means any person, firm, partnership, associ- ation, corporation, company, organization or entity. (25) "Public Property" means any real property owned by the City other than a highway, sidewalk, easement or dedication. (26) "Subscriber" means any person who receives cable services from the Company. (27) "Subscriber terminal" means the CATV System 75 ohm i cable terminal to which the subscriber's equipment is connected. Separate terminals may be provided for delivery of cable -7- 1 television signals, FM broadcast or other signals of differing classifications. (28) "System Rebuild" means the rebuild of Company's CATV System with new cable and electronics which Company has agreed to complete by the end of year two (2) of this franchise, pursuant to Sections 9-712 and 9-716. This System Rebuild will result in, among other things, an increase in the bandwidth and channel capacity of the CATV System (currently operating at 300 MHz with 36 activated downstream CATV channels) to 450 MHz with a channel capacity of 61 downstream CATV channels. System Rebuild is more specifically explained in Section 9-712. (29) "System Upgrade" means the subsequent upgrade of Company's rebuilt CATV System which Company has agreed to com- plete by the end of year ten (10) of this franchise, pursuant to Sections 9-716 and 9-723. The System Upgrade will result in, among other things, an additional increase in the bandwidth and CATV channel capacity of the CATV System to 550 MHz with a channel capacity of 77 downstream CATV channels. System Upgrade is more specifically explained in Sections 9-716 and 9-723. (30) "Upgr-aAe-T-lan-'-'-mea-rrs-the-pian- for -t -he System Upgrade, which plan Company shall submit to City for its approval by July 1 in year eight (8) of this franchise. -8- (31) "User" means any individual, institution, organiza- tion or business that purchases any portion of the CATV System's bandwidth for delivery of programming or cable services or for receipt of programming or cable services. (32) "Video Equivalent Channel" shall mean a band of the electro -magnetic spectrum which ',is capable of carrying one video signal. 1 1 4 SECTION 9 - 704 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(s), date of application and signature of applicant(s) or appropriate corporate officer(s). (2) A description of the legal, technical and financial qualifications of the applicant(s). (3) Payment of the required filing fee. (4) Any applicant (including, specifically, the Company) shall reimburse City at the time the applicant accepts a fran- chise for all reasonable costs of the City in connection with the granting or renewal of a franchise, including costs for legal services and publication. (5) A general description of the applicant's proposed operation. (6) A statement of the applicant's proposed schedule of charges. -10- (7) A statement detailing the corporate organization of i the applicant, if any, including the names and addresses of its officers and directors and the division of shares between shareholders. (8) A statement describing all intra -company relationships of the applicant including parent, subsidiary or affiliated companies. 1 J SECTION 9 - 705 GRANT OF FRANCHISE Pursuant to the City Charter, applicable provisions of Chapter 238 of the Minnesota Statutes, and the Cable Communica- tions Policy Act of 1984, the City grants to the Company a non- exclusive ten (10) year cable communications system franchise on the terms set forth in this Franchise Ordinance. This Franchise Ordinance is for the right and privilege to rebuild, upgrade, construct, erect, operate and maintain a CATV System in, on, along, above, over, under and across the highways, streets, alleys, sidewalks, driveways, dedications, easements and public property of the City now in existence and as may be created or established during the term of this Franchise Ordi- nance. This CATV System is for the purpose of the transmission and distribution of CATV and other services; electrical impulses (audio, video, voice, data and other electrical signals) of television, radio and other intelligences, either analog or digital; and for _pxa. va-t e -an --pubL i-c--u-se 4-n-a-nd to -t -h e C i l y and of its residents. -12- SECTION 9 - 706 FRANCHISE REQUIRED After the effective date of this Franchise Ordinance, no person shall establish, operate or carry on the business of dis- tributing to any person in the City any television signals, or radio signals or other intelligences, either analog or digital, by means of a CATV System unless a franchise has first been ob- tained pursuant to the provisions of this Franchise 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__ma.p_app.r-aved by the City; any equipment or facilities for distributing any television signals or radio signals or other intelligences either analog or digital over a CATV System unless a franchise autho- rizing the use of the streets or properties or areas has first been obtained pursuant to the provisions of this Franchise Ordi- nance, and unless such franchise is in full force and effect. SECTION 9 - 707 PRIVILEGES AND OBLIGATIONS UNDER THE FRANCHISE ORDINANCE - (1) Agreement. The Company agrees to be bound by all the terms and conditions of this Franchise Ordinance. The Company also agrees to provide all services specifically set forth in the documents submitted to the City in Company's application for renewal of a CATV System franchise. By its acceptance of this Franchise Ordinance, the Company agrees that its application and pro formas (copies of which are on file in the office of the City Clerk) are adopted and made a part of this Franchise Ordinance. In the event of a conflict or discrepancy between the application of the Company and the provision of this Franchise Ordinance, that provision which provides the greatest benefit to the City, in the opinion of the City, shall prevail. (2) Pole Space Obligation. A franchise shall not relieve the Company of any obligation to obtain permits for pole space from any department of the City, a utility company, or from others maintaining paL s_in-the-City. (3) Privileges Must be Specified. No privilege or exemp- tion shall be inferred from the granting of any franchise unless it is specifically prescribed. Nothing in this Franchise -14- 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. (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 property or to any present or future improvements including with- out limitation sidewalks and roadway widening. (5) Consent to Transfer. The sale or transfer of the CATV System franchised under this Franchise Ordinance (including the sale or transfer by means of a fundamental corporate change, or a fundamental partnership change), requires the prior written approval of the City. The parties to the sale or transfer shall make a written request to the City for its approval of the sale or transfer. The Cites -shall reply in writing within thirty (30) days of the request and shall indicate its approval of the re- quest or its determination that a public hearing is necessary if it determines that a sale or transfer may adversely affect the Company's subscribers. The City shall conduct a public hearing on the request of the Company within thirty (30) days of that determination. The Company hereby agrees that it shall cooperate with the City and its agents and/or employees to provide them with all necessary informationl that the City deems relevant in order to assess whether or not an approval is appropriate. Such information shall include, but not be limited to: (a) the name and address of the proposed transferee and if such transferee is a corporation, the state of incor- poration and all states in which it is licensed to do business; (b) the proposed transferee's technical ability, financial condition and legal qualifications; (c) the current number of homes passed, basic sub- scribers and pay -television subscribers; (d) all financial information regarding the sale or the transfer including its proposed date; and (e) any other information that the City deems necessary. Unless otherwise already provided for by another ordinance, notice of the hearing shall be given at least fourteen (14) days before the hearing by publishing notice of it once in a newspaper of general circulation in the area being served by this Franchise Ordinance. The notice must contain the date, time and place of hearing and must-b-r-3-e-f-ly state--t-ha substance of the action to be considered by the City. Within thirty (30) days after the public hearing, the City shall approve or disapprove in writing the sale -16- or transfer request. Such approval must not be unreasonably withheld. The sale or transfer of stock or an interest in a corpora- tion, partnership, sole proprietorship or other entity so as to create a new controlling interest in a CATV System is also sub- ject to the requirements of this Section. The term "controlling interest" as used herein is not limited to majority stock owner- ship, but includes actual working control in whatever manner exercised. For purposes of this Section, fundamental corporate change means the sale or transfer of the majority of the corporation's assets; merger, including a parent and its subsidiary corpora- tion; consolidation; or the creation of a subsidiary corporation. For purposes of this Section, "fundamental partnership change" means the sale or- transfer—of =all—=or—a---majority--of -a -partner- ship's assets; change of a general partner in a limited partner- ship; change from a limited to a general partnership; incorpora- tion of a partnership; or change in the control of a partnership. At a minimum, the word "control" means a legal or beneficial interest (even though actual working control does not exist) of at least five percent (5%) or more. Every change, transfer or acquisition of control of the Company shall make the Franchise Ordinance subject to cancellation unless and until the City shall have consented in writing, which consent shall not be unreasonably withheld. The Company or proposed transferee shall assist the City in any such inquiry and the Company shall pay all costs incurred by the City in so inquiring, including City staff time at a value determined by the City. In no event shall a transfer or assignment of ownership or control be approved without transferee becoming a signatory to this Franchise Ordinance. Any right, title or interest of transferee shall be subordi- nate to any right, title or interest of the City. (6) Previous Rights Abandoned. A cable communications franchise shall be in lieu of any and all other rights, privi- leges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by a Company (or any transferee) per- taining to the rebuild, upgrade, construction, operation or main- tenance of a CATV System in the City. The acceptance of this Franchise Ordinance shall operate, as between the Company and the City, as an abandonment of any and all of such rights, privi- leges, powers, immunities, and authorities within the City. Any rebuild, upgrade, construct ion, ape-r-at-io-n -a-rid—maintenance by the Company of any CATV System in the City shall be under this Fran- chise Ordinance and not under any other right, privilege, power, immunity or authority. -18- (7) Subject to Other Rules and Regulations. The Company and City shall conform to all federal, state and local laws and regulations regarding cable communications not later than one (1) year after they become effective; unless otherwise stated. Com- pany shall also conform with all City ordinances (in addition to this Franchise Ordinance), resolutions, rules and regulations heretofore or hereinafter adopted or established during the en- tire term of the Franchise Ordinance. This Franchise Ordinance complies with all requirements of the Minnesota franchising stan- dards set forth in the Minnesota Statutes and all statutes, rules, regulations and other laws relating to the content and grant of a CATV franchise. (8) Costs. Costs to be borne by Company shall include, but shall not be limited to, all costs incurred by the City, its staff, appointees, -or--elected-officials_i.n_assessing_the_need for franchising and the renewal of a franchise for a CATV System, including the present renewal. Such costs shall also include, but not be limited to, publications of notices prior to any public meeting provided for pursuant to this franchise, and the costs incurred by the City in its study, preparation of proposal documents, evaluation of any applications, and examination of applicants' qualifications. (9) Notices. All notices from Company to the City pursuant to this Franchise Ordinance shall be filed with the City Clerk and with the City Manager. Company shall maintain with the City, throughout the term of this Franchise Ordinance, an address for service of notices by mail. Company shall also maintain with the City, a local office and telephone number for the conduct of matters related to this Franchise Ordinance during normal business hours. _ SECTION 9 - 708 DURATION OF FRANCHISE (a) The term of the cable franchise granted by the City to the Company pursuant to this Franchise Ordinance shall be for a period of ten (10) years from and after the effective date. Nothing in this Section limits the City's rights to revoke or terminate the franchise granted by this Franchise Ordinance pur- suant to Section 9-724 and 9-725. (b) Pursuant to Sections 9-712, 9-716 and 9-723; the Com- pany is required to construct a System Rebuild to be completed by the end of year two (2) of the franchise; to submit an Upgrade Plan by July 1 of year eight (8) of the franchise; and construct a System Upgrade to be completed by the end of_year ten (10i_oF the franchise. Upon approval of the Upgrade Plan by the City in year eight (8), Company shall immediately commence construction of the System Upgrade. (c) If the System Upgrade is completely constructed by the end of year ten (10) of the franchise, and the City certifies construction completed satisfactorily (per procedures specified in Section 9-716), the term of this Franchise Ordinance shall be extended for an additional period of ten (10) years, from a ten 1 -21- 1 (10) year to a twenty (20) year franchise. If, however, the System Upgrade is not completely constructed by the end of year ten (10), and/or the Company does not obtain the City's certification, the term of the franchise granted pursuant to this Franchise Ordinance shall remain ten (10) years, at the end _of which time the franchise will expire. _22_ SECTION 9 - 709 FRANCHISE PAYMENT (1) Payment to the City. For the use of the streets and other facilities of the City in the operation of the CATV System and for municipal supervision, Company shall pay to the City an annual franchise fee in an amount equal to five percent (5%) of the annual gross revenues received by the Company for cable ser- vices within the City. Payment will be made to the City with an itemization of the gross revenues. (2) Method of Computation; Interest. Local sales taxes or other local taxes levied directly on a per -subscriber basis and collected by the Company shall be deducted from the local gross revenues before computation of _sums due --the City--i-s-made. The franchise payment shall be in addition to any other payment owed to the City by the Company. Payments due the City under the terms of this Franchise Ordinance shall be computed quarterly. The quarter shall end on September 30, December 31, March 31 and June 30 and the franchise fee shall be paid on or before the thirtieth (30th) calendar day from each computation date at the Office of the City Treasurer, during regular business hours. The City shall be furnished a statement with each payment, certified 1 as correct by the Company, reflecting the total amounts of gross revenues, and the above charges, deductions and computations, for the three (3) months' payment period covered by the payment. On or before April 30 of each year the Company shall furnish the City with a statement reflecting the total amount of gross reve- nues in St. Louis Park and the calculation of the payments due to the City, which statement has been prepared and certified by an independent certified public accountant in accordance with gener- ally accepted auditing standards. In the event that any franchise fee payment is not made on or before the applicable date(s) specified and in the manner required, interest on the amount due (as determined from the gross operating receipts computed by an independent certified public accountant), shall accrue from the required payment date at the annual rate of twelve percent (12%). (3) Verification and Inspection of Records. The City shall have the right to inspect the Company's income records. The City may, but is not required to, audit such records and to recompute any amounts determined to be payable under this Fran- chise Ordinance. It --the--a-ud3-t- rcvcv-l-s--C-empa-ty's-franchise—fee payment was less than the amount the auditor found to be due and owing, the Company shall reimburse the City for all expenses incurred by the City in conducting the audit, and the Company shall submit payment of the difference to the City immediately upon receipt of notice of the discrepancy. (4) 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 Franchise Ordinance or for the performance of any other obligation. (5) Late Payments. The City's acceptance of a late pay- ment by the Company shall not be deemed a waiver of their right to enforce in the future that timely payments be made. SECTION 9 - 710 SECURITY FOR PERFORMANCE (1) Performance Bond. (a) Terms of Bond. As of the effective date of this Franchise Ordinance, the Company shall file with the City Clerk at its own expense, and at all times thereafter main- tain in full force and effect for the term of this Franchise Ordinance or any renewal, running to the City, a faithful performance bond in the amount of $500,000.00. The bond shall be issued by a responsible company licensed to do business in the State of Minnesota, renewable annually and conditioned upon the faithful performance by the Company of all the terms and conditions of this Franchise Ordinance. This performance bond shall contain the further condition that in the event Company shall fail to comply with any law, ordinance or regulation governing the Franchise Ordinance, any such failure shall be deemed material and the principal and surety o f=the_ho.n.d _shall -b -e -ia i -n -t4 y-a-nd-s-e verai ly - lz abl e for any damages or loss suffered by the City as a result, including the full amount of any compensation, indemnifica- tion, or cost of removal or abandonment of any property of -26- the Company, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond. This condition shall be a continuing obligation for the duration of the Franchise Ordinance and any renewal or extension and until the Company has liquidated all of its obligations with the City that may arise from the Company's acceptance of this Franchise Ordinance or from Company's exercise of any privilege or right granted by this Franchise Ordinance. After completion of the System Rebuild required by Sections 9-712 and 9-716 of this Franchise Ordinance, and after certification of completion by an independent engi- neer, the performance bond shall be reduced to $50,000. At the time of submittal of the Upgrade Plan in year eight (8) of --t-his --Franchise _Ordinance, _the _Company shall include a proposal for increased bonding during the construction of the System Upgrade. Notwithstanding the above provisions of this subsec- tion, the Council may in its sole discretion waive the bond or reduce the required amount after five (5) years of opera- tion of a CATV System under the Franchise Ordinance by the Company; if the operation, in the sole opinion of the City, has been satisfactory. r r i 1 The bond(s) should be subject to the approval of the City and shall contain the following endorsement: It is hereby understood and agreed that this bond may not be cancelled until sixty (60) days after receipt by the City (by filing with the City Clerk), by registered mail return receipt requested, of a written notice of intent to cancel, intent not to renew, or material change in the bond. (b) Delays in Performance. The bond(s) required in this subsection shall provide that with fifteen (15) days' prior written notice to the Company, the City may recover against the surety the sums provided for failure to complete construction in accordance with any provisions of this Fran- chise Ordinance. (2) Letter of Credit. (a) Within ten (10) days after the adoption of this Franchise Ordinance, Company shall deposit with the City an effective irrevocable Letter of Credit from a local finan- cial institution (and maintain at all times through the term of this Franchise Ordinance), in the amount of Fifty Thousand Dollars ($50,000.00). The form, manner and content of the Letter -of -Cr -edit shall be subject to --the approval by the City Council. The Letter of Credit shall be used to insure the faithful performance by Company of all the pro- visions of this Franchise Ordinance; and compliance with all orders, permits and directions of City and the payment by Company of any claims, liens and taxes due City which arise by reason of the construction, rebuild, upgrade, operation or maintenance of the CATV System. The City may utilize the Letter of Credit to obtain an appropriate amount to pay penalties as authorized by Section 9-721, from and after City gives Company thirty (30) days notice of default of any Franchise Ordinance provision. City reserves the right, in its sole discretion, to reduce the required amount of the Letter of Credit. (b) If Company 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 Company in connection with this Franchise Ordinance;-or-fa3-l-s,--a-f-t-e-r-t-h4r-t-y-1-3-0--da-y-s---not-i-ce by City of Company's failure to comply with any provision of the Franchise Ordinance which City reasonably determines can be remedied by an expenditure of the security, City may immediately request and receive payment of the amount due and owing (with interest and any penalties) from the finan- cial institution holding the Letter of Credit. Upon request for such payment, City shall notify the Company of the amount and date of the payment. (c) Whenever the City shall receive payment of any amount against the Letter of Credit, the Company shall pay to or deposit with the financial institution holding the Letter of Credit an amount sufficient to replenish the Let- ter of Credit to its full value of Fifty Thousand Dollars ($50,000.00) within ten (10) days after the Company has been notified of the City's request for payment. The City Manager shall be furnished with written proof of replenish- ment not later than twenty-four (24) hours after it is accomplished. (d) The Letter of Credit shall contain the following endorsement: It is hereby understood and agreed that this - Letter of Credit may not be cancelled by the financial institution nor the intention not to renew be stated until thirty (30) days after receipt by the City, by registered mail, of -a -written notice -of such intention to cancel or not to renew. (3) Rights Reserved to City. The rights reserved by the City with respect to the bond(s) and Letter of Credit are in addition to all other rights and remedies the City may have under this Franchise Ord na-nye---o-r-may other -iaw. -30- SECTION 9 - 711 LIABILITY INSURANCE AND INDEMNIFICATION (1) Public Liability Insurance. (a) At all times during the term of the Franchise Ordinance, Company shall maintain and (by its acceptance of a franchise under this Franchise Ordinance) specifically agrees that it will maintain in full force and effect, and at its own cost and expense, the following listed liability insurance insuring the City and the Company. Such insurance shall be written with an insurance -company licensed to; do business in the State of Minnesota, for minimum amounts not less than the following: for claims ---because of bodily --i-njur-y, -si-ck-ne^s-s, disease, or death of any person or persons including, without limitation, the Company's employees, and for claims because of damage to or destruction of property of others including loss of use, arising out of the construction, rebuild, upgrade, repair, maintenance and/or operation of Company's CATV System: Bodily Injury & Property Damage Combined Single Limit $1,000,000 each occurrence $2,000,000 aggregate 1 1 or Bodily Injury Liability $1,000,000 each person $1,000,000 each occurrence Property Damage Liability $1,000,000 each occurrence $2,000,000 aggregate (b) The insurance referred to in subparagraph (a) above shall be written under the commercial general liabil- ity form including: (i) Premises/Operations Liability (ii) Products/Completed Operations Liability (iii) Contractual Liability (to provide coverage for the Indemnification Clause in this Section) (iv) Independent Contractors Liability and commercial automobile coverage providing coverage for all owned, hired and non -owned automobiles. The Company may, at its option, provide the limits of liability as__se_t____out___above—b_y__a—combination of the—above described forms and an umbrella excess liability policy. Company agrees that if an umbrella policy is used, Company will seek a provision that if the policy carrier is unable or fails to provide coverage, the umbrella policy shall provide coverage. -32- (c) The policy or policies shall afford the same limits of liability as set out above for liability assumed under contract. (d) 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 Company and the Company shall indemnify, keep and save the City free and harmless from liability for such sums unless the City expressly waives this provision in writing. (e) The policy or policies shall waive any and all governmental immunity as a defense in any action brought against the insured up to the amount of insurance coverage available but shall not waive any governmental immunity for sums exceeding --the -amount-of ---insu-rance-coverage. (f) Approval of the insurance by the City shall not in any way relieve or decrease the liability of the Company, 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 Com- pany's interests or liabilities. (g) The insurance policy or policies obtained by the Company in compliance with this Section must be approved by 1 the City Manager, and copies must be filed with the City Clerk. In addition, the Certificate of Insurance, along with written evidence of payment of required premiums, shall be filed and maintained with the City Clerk during the term of the franchise. The Certificate of Insurance shall show: Name of carrier; Policy Number and term; Coverages afforded; and If there are special limitations or exclusions on the insurance policy, then a copy of the policy exclusions or limitations must be submitted with the Certificate of Insurance. Binders shall be filed with the City Clerk as soon as they are obtained. (h) All subcontractors of the Company shall be required to carry similar liability insurance to that of Company. Evidence of the same shall be provided to the City upon request. (i) The policies shall name the City, its officers, boards, commissions, agents, Pmp1 oy_e_es_a.nri_ ppo-i-n4ees--as additional insureds. If the insurance is provided by a liability policy which also covers the Company or any other entity or person other than the City and the Company, then -34- the liability policy shall contain an enforcement concerning gross liability, which shall be subject to approval by the City Manager. (j) All insurance policies maintained pursuant to this Franchise Ordinance shall contain the following endorsement: It is understood and agreed that this insur- ance policy may not be cancelled nor the intention not to renew be stated until sixty (60) days after receipt by the City, by registered mail, of written notice of such intention to cancel or not to renew. (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 Company. (3) Indemnification. (a) Company shall fully indemnify, defend and hold harmless, City, its officers, boards, commissions, elected officials, agents, attorneys, representatives, servants and employees against any -a-nd —al -1 —c -es -t -s, damages;—expenses, claims, suits, actions, liabilities and judgments for dam- ages, including but not limited to, expenses for legal fees, whether suit be brought or not, and disbursements and liabilities incurred or assumed by City in connection with: (i) damage to persons or property, in any way arising out of or through the acts or omissions of Company or City, their respective servants, officials, agents, attorneys, representatives or employees or to which Company's or City's negligence or that of their respective servants, agents, officials, attorneys, representatives or employees shall in any way contribute; (ii) requests for relief arising out of any claim for invasion of the right of privacy; for defamation of any person, firm or corporation; for the violation or infringement of any copyright, trademark, trade name, service mark or patent; or of any other right of any person, firm, or corporation, excluding claims arising out of or relating to City's own programming; (iii) any and all claims arising out of Company's failure to comply with the provisions of this Franchise Ordinance or any federal, state or local law, ordinan-ee---or--reg-u-lat-Sen—appl-i-cable to -C-ompany—o-r the CATV System; (iv) any and all claims which Company may now or hereafter have or claim to have against City, its servants, agents, attorneys, representatives, employees or officials, due to or arising out of damage to any of Company's property or equipment, including, without limitation, resulting or consequential loss of income, injury to reputation, or any other resulting or con- sequential damages of any kind, caused by or resulting from acts or omissions of City or any of its servants, agents, attorneys, representatives, employees or offi- cials; and (v) any and all disputes arising out of a claim wherein damages or other relief is sought as a result of the City's cable communications franchising procedure or as a result of the renewal of the cable communications franchise, or as a result of the City's failure __to __award _a franchise to any other _person, partnership, partnership, corporation or other legal entity. (b) If suit be brought or threatened against City, either independently or jointly with Company, or with any other person or municipality; Company, upon notice given by City, shall defend City at the cost of Company. If final judgment is obtained against City, either independently or jointly with Company or any other defendants, Company shall -37- 1 indemnify City and pay such judgment with all costs and satisfy and discharge the same. (c) City reserves the right to cooperate with the Company and participate in the defense of any litigation either through intervention or otherwise. Company shall pay upon receipt of written demand from City, all expenses incurred by City in defending itself with regard to any matters in this Section. These expenses shall include, but not be limited to, attorneys' fees, and the reasonable value of services (as determined by City) rendered by City or any of its employees, officials, attorneys, servants, agents or representatives. (d) The City is in no manner or means waiving any governmental immunity it may enjoy or any immunity for its agents, officials, servants, attorneys, representatives and/or employees. (e) The Company shall make no settlement in any matter identified above without the City's written consent, which shall not be unreasonably withheld. Failure to inform t he City of_ _set_tl eme nt _shall -con-st-t -e—a--b-eea-ch—of L h i b Franchise Ordinance and the City may seek any redress avail- able to it against the Company whether set forth in this Franchise Ordinance or under any other municipal, state or federal laws. (f) If the City awards any additional cable communi- cations franchise in any future franchise process to a firm other than Company, then Company agrees that it will not bring, or cause to be brought, any action, suit or other proceeding claiming damages, or seeking any other relief against City, its elected officials, officers, boards, com- missions, employees, representatives, servants, agents or attorneys for any award of a franchise made in conformity with this Franchise Ordinance, Chapter 238 of the Minnesota Statutes and the Cable Communications Policy Act of 1984. (g) All rights of City pursuant to indemnification, insurance, Letter of Credit or performance bond(s), as pro- vided for by this Franchise -Or-diva-nee,--ar-e-in-,add t-iori -tom all other rights the City may have under this Franchise Ordinance or any other ordinance, rule, regulation or law. (h) The City's exercise of or failure to exercise any rights pursuant to any Section of this Franchise Ordi- nance shall not affect in any way the right of City subse- quently to exercise any such rights or any other right of City under this Franchise Ordinance or any other ordinance, rule, regulation or law. r r (i) It is the purpose of this Section to provide maximum indemnification to the City under the terms and conditions expressed and, in the event of a dispute, this Section shall be construed (to the greatest extent permitted by law) to provide for the indemnification of the City by the Company. (j) The provisions of this Section shall not be dependent or conditioned upon the validity of this Franchise Ordinance or the validity of any of the procedures or agree- ments involved in the renewal of the franchise, but shall be and remain a binding right and obligation of the City and Company even if part or all of this Franchise Ordinance, or the grant or renewal of the franchise, is declared null ,and void in a legal or administrative proceeding. It is expressly the intent of the Company and City that the provisions of this Section survive any such declaration and shall be a binding obligation of and inure to the benefit of the Company and City and their respective successors and assigns, if any. -40- SECTION 9 - 712 SYSTEM CAPABILITY; FACILITIES (1) System Rebuild. Currently, the CATV System has a bandwidth of 300 MHz with 36 activated downstream cable televi- sion channels. In consideration of renewal of this franchise, Company has agreed to rebuild the CATV System currently in place by the end of year two (2) of this franchise, so that the System Rebuild will serve all residences in the City and have the features, facilities and equipment set forth in this subsection as described in attached Exhibit "A", incorporated by reference. Company shall overlash all existing aerial distribution cable with new cable and install all new electronics. Company shall replace all existing aerial and underground Jxun.k -and _dis- tribution cable and install all new electronics. Upon completion of the System Rebuild, the CATV System shall be a broadband tele- communications network having a minimum initial bandwidth of 450 MHz with a channel capacity of 61 downstream CATV channels. The CATV System shall be a single cable network which is of a quality comparable to or better than the channel capacity and satellite - delivered services of the CATV Systems in Fridley and Bloomington, as well as of any other CATV Systems which Company 1 offers (or may, in the future, offer) in Twin Cities metropolitan communities with populations of 100,000 or less. The active electronics shall be spaced to accommodate future upgrading to 550 MHz with a channel capacity of 77 downstream CATV channels utilizing feed forward operation. The passive electronics shall accommodate a 550 MHz operation. The Company shall activate one-way addressability for the provision of pay services, pay-per-view services, and other ancillary services. The CATV System shall have the technical capacity for nonvoice return communications which, for purposes of this Franchise Ordinance, 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. (2) Reverse Signal Transmission Capability. The reverse signal transmission capability of the CATV System shall be -at least in accordance with the requirements of the FCC's Third Report and Order. Whenever a reverse circuit is completed to a subscriber's premises so as to permit a response to an interroga- tion originated by- he--Compa-ny-, it shall be- i-nstokted--in--such a way so as to permit subscriber notification and deactivation as set forth in Section 9-719(1). -42- (3) Rebuild of Facilities, Equipment and Service. The Company shall rebuild its facilities, equipment and service so that its CATV System is as advanced as the current state of tech- nology which field -proven equipment will allow. Specifically, Company shall continually upgrade its facilities and equipment to a quality comparable to or better than the CATV Systems in Fridley and Bloomington as well as those CATV Systems which presently exist or which may exist in the future in the other Twin Cities metropolitan communities (wherein the population is 100,000 or less) in which the Company offers CATV services. The foregoing shall include, but not be limited to, the provision of a comparable or greater number of activated downstream and upstream CATV channels and satellite -delivered services upon completion of the System Rebuild. In order to show that such ongoing upgrade is -being accomplished, Company shall -cooperate with City in Periodic Evaluation Sessions and Technical Inspec- tions and Evaluations as more fully set forth in Section 9- 719(13) and (15). (4) Emergency Power. The Company shall provide emergency and automatic standby power for the headend and the trunk lines that will enable emergency use of the facilities as provided in subsection (6) of this Section. In addition, at such time as emergency and automatic standby power is provided for the public r f 1 1 4 access/local origination studio in Fridley, Company shall provide such standby power for its studio in St. Louis Park. (5) Business Office. The Company shall maintain a full service office in the City at a location convenient to the public and shall offer all walk-in consumer services and assistance offered by Company at any of Company's other business offices. See Section 9-719. (6) Emergency Capability and Use. In the case of any emergency or disaster, the Company shall make its entire CATV System available without charge to the City or to any other governmental or civil defense agency that the City shall designate. The Company shall incorporate into its facilities the capability of emergency override audio alert whereby the City in times of_crises, or at times of testing, may be able to introduce a bulletin on all channels simultaneously. The Company shall provide all equipment necessary for use of the emergency alert system in a location to be designated by the City. (7) Studio Facilities; Personnel. (a) The Company shall provide a full color capable studio within City. This studio shall enable preparation and playback of simultaneous live and/or taped programming within its facilities and provide adequate space for reasonable audience participation. Company's studio shall be accessible to the public and operate at reasonable hours to accommodate the public. (b) Company shall provide either by a separate cable or by use of the bi-directional capability of its CATV System, the capability for live remote cablecasting from at least five (5) selected locations within the City of St. Louis Park to be designated by the City. Company shall connect any public building or facility designated by the City that lies along the bi-directional routes of the five (5) selected locations. The Company shall also provide a mobile van capable of remote cablecasting. (c) The, Company shall, upon request and at no charge, provide the production facilities and personnel reasonably necessary _to_assist-in—the_preparat ion _and __tr_ans- mission of governmental and educational programs. Upon approval by City, Company may delegate responsibility to a third party to help accomplish the requirements set forth in this Section and Section 9-714(8). (d) Attached as Exhibit "B" and made a part of the Franchise Ordinance is a listing of equipment for the studio facility and mobile van required by this Section, as well as -45- r r 1 1 the upgrade, replacement and maintenance plan for this equipment and facility. (8) Continuous Operation. The CATV System shall be designed for 24 -hour -a -day continuous operation. (9) Computer Access. The Company shall, when it becomes technically and economically viable, provide computer access to all subscribers. -46- SECTION 9 - 713 CONSTRUCTION AND TECHNICAL STANDARDS (1) Compliance with Construction and Technical Standards. Company shall construct, install, operate and maintain its system in a manner consistent with all laws, ordinances, construction standards, governmental requirements and FCC technical standards. In addition, Company shall provide to each subscriber a statement in layman's language of the quality of signal to be expected by the subscriber. (2) Performance Tests and Certification. (a) The Company shall be responsible for insuring that the CATV System is designed, installed and operated in a manner which fully complies with the technical standards of this Franchise Ordinance. (b) The Company shall conduct, as set forth by the FCC in their Third Report and Order, complete performance tests of the CATV System at least once each calendar year [at intervals not to exceed fourteen (14) months]. The Company shall provide the City, upon request, with a written report establishing that the CATV System does, in fact, comply with the technical standards. In addition, the 1 Company shall file with the City a certificate detailing the test standards, the instruments and procedures used, the results of the tests, and the credentials of the person(s) conducting the tests. Company shall give the City adequate notice prior to the administration of the tests to allow a technical representative appointed by the City to be present during testing. All costs of testing, including the City's technical representative if one is appointed, shall be borne by the Company. (c) After reviewing the certificates of compliance required in paragraph (b), the City may require that addi- tional measurements or performance tests be made, or that a clarifying explanation be supplied. (d) Company shall bear all of the costs of testing required as a result of this Franchise Ordinance. Any con- sultant performing such testing shall be mutually agreed upon by City and Company and shall, in its proposal to per- form such testing, establish a maximum estimated charge for such testing. (3) Additional Specifi-cattons. -Construction, inStalla- tion and maintenance -of the CATV System in City shall be per- formed in an orderly and workmanlike manner. All cables and wires shall be installed, where possible, parallel with electric -48- and telephone lines. Multiple cable configurations shall be arranged in parallel, and bundled with due respect for engi- neering considerations. Company shall at all times comply with: (a) National Electrical Safety Code as prepared by the Institute of Electrical and Electronic Engineers; (b) National Electrical Code of the National Fire Protection Association; (c) Bell Telephone System's Code of Pole Line Con- struction, also known as Bell System Manual of Construction Procedures as it applies to the construction of a CATV System; and (d) Other applicable federal, state and local zoning regulations. In any event, the CATV-- System-- shall nct -endanger or _interfere with with the safety of persons or property in the franchise area or other areas where the Company may have equipment located. Any antenna structure used in the CATV System shall comply with construction, marking, and lighting of antenna structure(s), as required by the United States Department of Transportation. All working facilities and conditions used during construc- tion, installation and maintenance of the CATV System shall r 1 1 comply with the standards of the Occupational Safety and Health Administration. The Company shall maintain equipment capable of providing standby power for headend, transportation and trunk amplifiers for a minimum of two hours. (4) Measurements Used in Performance Tests. As may be necessary to ensure satisfactory service to a subscriber, the City may require additional tests to demonstrate CATV System performance or may specify the use of different test procedures. -50- SECTION 9 - 714 SUBSCRIBER NETWORK (1) Basic Cable Service Channels. The Company shall pro- 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, educational, governmental, and leased access channels as well as local origination channels as set forth in this Section. (c) one or more distant independent super stations. (d) satellite -delivered channels which independently provide the _following broad categories _of _programming -as available: News programming; Sports programming; Music programming; Children's programming; Arts programming; Public affairs programming4 Broad-based general interest programming; Religious programming; and Financial programming i (e) either local or satellite delivered channels which provide programming information or current weather information. (f) Regional Channel Six. Company shall also allow basic only subscribers to have access to purchasing pay-per-view without being required to purchase any premium services. Any customer who specifically requests an addressable converter has a right to receive one from the Company. Upon completion of the CATV System Rebuild in accordance with Section 9-712, Company shall at a minimum add the following broad categories of programming to the Basic Service Channels: middle of the road music and scientific -educational programming. (2) Specially Designated Public, Educational, Governmental and Leased Access Channels. Company shall make available for access programming at least four (4) downstream video channels on the Subscriber Network for public, educational and governmental access. These channels shall be reserved for each of the following purposes: (a) one (1) channel specially designated for noncommercial public access,--ava-i4abl-e -tor -less by -the - gener�3 public on a first come, first serve, nondiscriminatory basis; (b) two (2) channels specially designated for noncommercial access by local educational authorities; and (c) one (1) channel -52- specially designated for noncommercial access for local government use. In addition, Company shall make available leased access channels pursuant to the Cable Communications Policy Act of 1984. The VHF spectrum shall be used for a least one (1) of the specially designated noncommercial public access channels re- quired in this Section. Company shall provide reception on these channels to each of the subscribers who receive all or any part of the total video programming services offered on the CATV System. In the event Company provides subscribers only non-video services, alarm system service or only data transmission services for computer operated functions, Company shall be exempt from providing access channel reception to such non-video alarm or data service-only-subscribers. (3) Charges for Use of Public Access Channels. No charges shall be made for channel time or playback of prerecorded pro- gramming on at least one (1) of the specially designated noncom- mercial 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 1 4 with the goal of affording the public a low cost means of tele- vision access. (4) Channel Capacity Expansion. Whenever any of the spe- cially designated public, educational, local governmental or 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 chan- nel for the same purpose, Company 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 Company to install con- verters. Nothing in this Section shall be construed so as to preclude the installation of converters by Company on a voluntary basis, or as a result of an agreement arrived at through negotia- tion between City and Company, or by a potential access user who wishes to install converters in order to make use of additional channel(s). (5) Access Channel Rules. In conjunction with City, the Company shall establish rules _pertaining to the a ministration of the specially designated public, educational and leased access channels. The governmental access channel shall be administered solely by the City. The leased access ,channel(s) shall be administered solely by the Company. (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 of the specially designated access channels required in this Section; public, educational, govern- mental and leased access channel programming may be combined on one or more cable channels. To the extent consistent with the City's rules and where time is available, access channels may also be used for other broadcast and nonbroadcast services, pro- vided 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. Company shall, in any case, provide at least—one - (1)--fu-11 -channel -on--the---VHF-=spectr-uit�-o-r shared access programming. Available channel capacity shall be reduced or a determination that demand for use does not warrant activation of all the specially designated access channels re- quired by this Section shall be made only pursuant to the fol- lowing procedure: (a) Company will notify City of the proposed change; (b) 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 andopportunity to be heard to all interested parties. (7) Access Equipment Available. The Company shall assure that at least the minimal equipment necessary for the production of programming and playback of prerecorded programs for the spe- cially designated noncommercial public access channel and such other equipment as set forth in Section 9-712(7) and in Exhibit B is readily available for public use. In addition, Company shall contribute the following sums to City to be used to acquire equipment in support of public, educa- tional and governmental access: (a) upon acceptance of this $ 60,000.00 Franchise Ordinance (b) at Year 5 of this Franchise Ordinance $ 72,000.00 (no later than January 1, 1994) (c) at Year 10 of this Franchise Ordinance, if the Franchise --O rd-i-rra�-ce-±s--remewed--o r extended beyond year ten (10) $ 86,000.00 (no later than January 1, 1999) (d) at Year 15 of this Franchise -56- Ordinance, if this Franchise Ordinance is renewed or extended beyond year ten (10) $100,000.00 (no later than January 1, 2004) (8) Additional Channels for Commercial Use. Upon comple- tion of the CATV System Rebuild or other expansion of channel capacity, Company shall, at a minimum, make channels available 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 Company shall provide, in addition to public, educational, governmental and leased access channels, at least one (1) channel fully devoted to local origination programming. Such local origination pro- gramming is construed to include but is not limited to coverage and reporting of -spoT- ing--and---cultur-al -eve-nts -and other -activi- ties and events of the City, schools, community and service organizations, religious institutions, and individuals. The Company 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 Company. Company shall provide, at a minimum, the following hours of original locally produced programming per month computed on a r 1 1 quarterly basis as reflected in a monthly franchise report of Company: (a) Years 1 & 2 15 hours (b) Year 3 17 hours (c) Year 4 19 hours (d) Year 5 & thereafter 20 hours -58- SECTION 9 - 715 INTERCONNECTION AND INSTITUTIONAL NETWORK (1) Interconnection. Subject to obtaining interconnection approval from adjoining CATV System franchisers and operators, the Company shall interconnect its CATV System with all other CATV Systems serving those municipalities that adjoin the City, upon the City's request. In addition, the Company shall make a diligent effort to interconnect its CATV System with other CATV Systems in the seven -county metropolitan Twin City area. None of the provisions in this Franchise Ordinance shall be construed to preclude City from further requiring Company to continue inter- connect negotiations with contiguous franchisees in the event approval is not initially obtained_. she Ci-t_y,r-_esexves--the -right to negotiate with the Company to set aside a reasonable number of interconnected channels to meet special City needs. (2) Institutional Network Committee. City and Company agree that in order to undertake development of the Institutional Network for the purposes described in this Franchise Ordinance, a study of technology, financing and the specific plan for develop- ment needs to be accomplished. The plan for the Institutional Network will be developed and approved by City after review and -59- r f i 1 4 comment by Company. For this reason a special study group shall be created and City and Company will share equally in the costs incurred in order to accomplish the study. Accordingly, there is hereby created a committee to be known as the St. Louis Park Institutional Network Committee ("SLP I -Net Committee"). The SLP I -Net Committee shall consist of seven (7) members, including a chairperson. Within thirty (30) days after the effective date of this Franchise Ordinance, City shall appoint five (5) members, including the chairperson; and Company shall appoint two (2) members, one (1) who shall provide technical assistance and one (1) who shall provide management and financial assistance to the SLP I -Net Committee. Company and City shall attempt to appoint qualified people with appropriate school, industrial, institu- tional, electronic and technical and/or financial experience. Within six (6) months from the date of appointment of the members of the SLP I -Net Committee, a final report containing recommendations shall be provided to City and Company. The report shall include, but not be limited to, time for construc- tion, method of financing construction and maintenance, proposed use, frequency bandwidth letter _oLnumeexic designation, hpiirs of operation and any special services suggested or having a clear community need. Upon the City's approval of the report, it shall be adopted as the Institutional Network Plan, pursuant to which -60- Company shall commence and complete construction of an Institutional Network. However, in no event will the cost of the implementation of and construction pursuant to the Institutional Network Plan exceed 110% of the cost of implementing the Institutional Network described alternatively in subsection 3 of this Section. During the time period for appointment of the SLP I -Net Committee and the preparation of its report, the City will not require Company to comply with the Franchise Ordinance provisions with respect to the Institutional Network. In the event that a final report is not submitted to City and Company within the six (6) month period, or if a submitted report is not approved, Company shall at a minimum construct the Institutional Network described below in subsection 3. (3) Institu-ti-ona1--Ne-t-wog-- I-n—b eu--of—SLP -1 -Net -Commi-tt ee '-s Plan. Company shall construct, operate and maintain a separate Institutional Network. In constructing the Institutional Network, it is Company's intent to utilize portions of the existing trunk plant together with the construction of additional trunk plant, if needed. (a) Channel Capacity. The separate Institutional Network will utilize either a "mid -split" (8 upstream and 21 downstream 6 MHz CATV channels) or a "high split" (17 1 1 upstream and 13 downstream 6 MHz CATV channels), the determination of which shall be made by the SLP I -Net Committee within six months of acceptance of this franchise and communicated in writing to Company. (b) Coverage. The separate Institutional Network will pass all the institutions listed on Exhibit C. Alternatively, within three (3) months from acceptance of this franchise, Company may request City to designate a lesser number of institutions to be passed. City must respond to Company's request no later than six (6) months from acceptance. If Company's request is denied, then all the institutions listed on Exhibit C shall be passed by the Institutional Network. If Company's request is granted, the City's response shall also designate the number and identity of institutions on Exhibit C to be passed by the Institutional Network. (c) Completion. Construction and activation of the separate Institutional Network shall be completed no later than six (6) months after completion of construction and activation of the Subscriber Network. (d) Equipment Provided. Company shall make available to City, as required, modulators, demodulators and associated head -end equipment costing Company no more than -62- $50,000 for users of the Institutional Network. In addition, in the event that City and Company determine to utilize the Subscriber Network to provide Institutional Network service to some of the institutions listed on Exhibit C, Company shall make available equipment to scramble the discreet channels to these institutions. (e) Service Provided. Company shall make available one free drop of the Subscriber Network and one free drop of the Institutional Network to institutions listed on Exhibit C. Company shall provide, at no charge, basic service to institutions listed on Exhibit C. Company shall provide, at no charge and upon City's request, up to 40 standard, non - addressable converters to City or City's designees. To the - extent any of the signals transmitted to or from any of the institutions listed on Exhibit C are scrambled, Company shall provide addressable converters upon the City's request. (4) Institutional Network Plan. [To be reserved for future use upon development and approval by SLP I -Net Committee and City of the Institutional Network Plan as is required by subsection 2 of this Section.] 1 SECTION 9 — 716 SYSTEM CONSTRUCTION REQUIREMENTS AND INSTALLATION SCHEDULE (1) System Rebuild and System Upgrade. As is required elsewhere in this Franchise Ordinance, Company shall immediately commence a rebuild of the existing CATV System pursuant to all design, construction and timetable requirements set forth in this Franchise Ordinance, resulting in a System Rebuild. Further, Company shall commence a System Upgrade beginning in the eighth (8th) year of the term of this Franchise Ordinance in accordance with an approved Upgrade Plan. (2) Permit Application. Company shall be responsible for application costs and approval of all necessary permits for the System Rebuild and System Upgrade as those terms are defined in this Franchise Ordinance. Further, Company shall make applica- tion within a reasonable time so as to permit the issuance by the appropriate public authorities within the time period(s) required to meet the construction schedule(s) provided for in this Fran- chise Ordinance. With regard to_permits and_Amthori'ations -froom the City, it is intended that a permit be issued for construction of the entire CATV System and the permit fee will be based upon review by the City of the Company's plans for construction. It shall be the responsibility of the Company to present the City with plans and specifications for the System Rebuild ini- tially and, by July 1 in year eight (8), for the System Upgrade. The plans shall be sufficient to permit the City and its t designees to evaluate the locations of construction, the impact on public streets, the timing of construction and particular locations, the relationship of the CATV System to other utilities and conformance with applicable binding contracts of the City and appropriate construction and electrical standards. City and Company will cooperate with one another to ensure the orderly and timely review of the construction plans of Com- pany. After a reasonable time for review, the City will identify the permit fee that will be reasonably required to off-set the costs of the City for review, inspection and administration of the construction plans a-nd=cons.t r-u c-t on--of—t#e---CATV=Sys-t-em . -- pen payment of the fee required by City, Company shall be permitted to commence construction in accordance with the approved schedule and at the locations approved by the City. (3) System Rebuild Timetable. (a) All construction and improvements associated with the System Rebuild described in Section 9-712(1) shall commence as soon as is reasonably possible after this Fran- chise Ordinance becomes effective. Failure to proceed 1 expeditiously shall be grounds for revocation of this fran- chise. Failure to proceed expeditiously shall be presumed in the event construction, evidencing a substantial comple- tion of first-year development, (which includes any work preliminary to the commencement of actual physical plant construction), is not commenced within twelve (12) months of the effective date of this Franchise Ordinance. (b) The System Rebuild shall be completed and the CATV System made fully operating no later than the end of year two (2) of this franchise. Company shall give written notice to the City sixty (60) days prior to the anticipated completion date. At such time as Company has, in fact, completed all construction and improvements associated with the System Rebuild, Company shall give written notice to City. (c) Upon receipt of the notice that all construction and improvements associated with the System Rebuild have, in fact, been completed, the City shall have ninety (90) days to receive a written report from an independent engineer; provided, however, i_f_the City fails to-ree ve-such written report within the ninety (90) days the System Rebuild shall be deemed completed, unless the failure to receive such a -66- report is due to unforeseen events, acts of God, or events beyond the reasonable control of the City. (d) Notwithstanding anything to the contrary, the City may condition completion of the System Rebuild upon receipt of a written report from an independent engineer. The System Rebuild shall not be deemed completed until the independent engineer reports the following: (i) all construction and- improvements associated with the System Rebuild have been made or otherwise satisfactorily resolved; (ii) satisfactory test results using the FCC technical standards have been obtained; and (iii) construction and improvements are in com- pliance with all applicable codes and standards. (4) System Upgrade Timetable. (a) All construction and improvements associated with the System Upgrade described in Section 9-723(3) shall commence as soon as is reasonably possible after the City's approval of the Upgrade Plan in year eight (8) of this franchise. Failure to proceed expeditiously shall be grounds for revocation of the franchise issued by this Fran- chise Ordinance. Failure to proceed expeditiously shall be 1 presumed in the event construction, evidencing a substantial completion of first-year development (which includes any work preliminary to the commencement of actual physical plant construction), is not commenced within twelve (12) months of the City's approval of the Upgrade Plan. (b) The System Upgrade shall be completed and the CATV System made fully operating no later than the end of year ten (10) of this franchise. Company shall give written notice to the City sixty (60) days prior to the anticipated completion date. At such time as Company has, in fact, completed all construction and improvements associated with the System Upgrade, Company shall give written notice to City. (c) Upon receipt of the notice that all construction and improvements associated with the System Upgrade have, in fact, been completed, the City shall have ninety (90) days to receive a written report from an independent engineer; provided, however, if the City fails to receive such written report within the ninety (90) days the System Upgrade shall be deemed _completed, unless tyre -u -re -t-o -receive succi a report is due to unforeseen events, acts of God, or events beyond the reasonable control of the City. -68- (d) Notwithstanding anything to the contrary, the City may condition completion of the System Upgrade upon receipt of a written report from an independent engineer. In the event the City does choose to require such a condi- tion, and if necessary to enable City to review the report, the City may extend the term of the franchise for up to six (6) months, pursuant to Section 9-725(1) of this Franchise Ordinance. If such a report is required by the City, the System Upgrade shall not be deemed completed' until the independent engineer reports the following: (i) all construction and improvements asso- ciated with the System Upgrade have been made or otherwise satisfactorily resolved; (ii) satisfactory test results using the tech- nical ech-nical standar-d s -have -bee n-o-b-t a -ned-; -and (iii) construction and improvements are in com- pliance with all applicable codes and standards. (5) Continuation of Service. During the System Rebuild and the subsequent System Upgrade, Company shall continue opera- tion of the current CATV System. In no event shall Company fail to continue providing service during the System Rebuild or System Upgrade. 1 1 (6) Time is of the Essence. All time limits stated in the Franchise Ordinance are of the essence in the Franchise Ordinance. Failure of the Company to obtain necessary permits and to commence and diligently pursue installation and completion of the System Rebuild and, subsequently, the System Upgrade, shall be grounds for termination of the Franchise Ordinance. The City in its discretion may nonetheless extend the time for the commencement and completion of construction and installation for additional periods in the event that the Company, acting in good faith, experiences delays by reason of circumstances beyond its control. (7) Delays and Extensions of Time. The Company 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 sub ontrac-rnr—or supplier-, _a.nd if such default arises out of causes beyond the control of both the Company and subcontractor or supplier, and without the fault or negligence of either of them, the Company shall not be liable -70- for any penalties for a 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 Company 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 (7) days of the claimed delay. (8) Failure to Complete. The Company shall pay to the City $500.00 per day for failure to complete the System Rebuild as required in subsection (3) of this Section, and to continue service as required in subsection (5) of this Section. In this event, the Company shall be prepared, if requested by the City, to demonstrate that the requirements of the Franchise Ordinance have been satisfied. Upgrade pursuant to an Failure to complete the approved System approved Upgrade Plan by the end of year ten (10) of this franchise will _result in the ,fxanc_hise-ite-r-m_rot being extended from year ten (10) to year twenty (20); and, further, the failure to complete the System Upgrade pursuant to an approved Upgrade Plan by the end of year ten (10) will result in a penalty of $500.00 per day. These penalties are in addition to the City's right to revoke or terminate the Franchise Ordinance pursuant to subsections (3) and (4) of this Section. r 1 1 1 (9) Early Construction. Nothing in this Section shall prevent the Company from constructing the System Rebuild and/or System Upgrade earlier than planned. (10) Line Extension Policy. Company shall pass all resi- dential dwellings within City. Company shall pass any non-resi- dential building when the owner of such building requests cable service and agrees to pay all actual installation costs in excess of Two Hundred Fifty and no/100 Dollars ($250.00). (11) Public Relations During Construction and Installation. Company shall expend its best efforts to maintain good public relations during period(s) of construction and installation at any time; including, without limitation, the System Rebuild -and System Upgrade. At a minimum, Company agrees to implement the preliminary plan attached as Exhibit "D" and incorporated by reference as a part of this Franchise Ordinance. (12) City's Reservation of Rights. Neither the review of plans by the City nor the granting by City of any licenses, permits, certificates, authorizations, approvals, etc., shall be construed as a guarantee or warranty by the City of Company's CATV System. The--Company_s.hal l --not assert the -- ac-t--t-ha-t _-tie-C-it-y has performed any prior review of its plans or exercised any ministerial function in granting licenses, permits, certificates, authorizations, approvals, etc., as a defense against its obligations to indemnify and hold the City harmless pursuant to Section 9-711(3). SECTION 9 - 717 FEES, RATES AND CHARGES To the extent authorized by federal law, rates and charges for services offered by Company shall be established pursuant to this Section. (1) Basis; Approval. Fees, rates or charges for any ser- vice provided shall be fair, reasonable and nondiscriminatory and designed to meet all necessary costs of service, including a fair and reasonable return on investment under economical and effi- cient management. with the City. All fees, rates and charges shall be filed All rates and charges shall be regulation by City if permitted by applicable law. (2) Rate Schedule. Company shall file with subject to the City a rate schedule, listing rates and charges for monthly service and installation, current subscriber rates and any other charges charged by Company for the operation of the CATV System. This rate schedule shall be regularly kept on file with the City, and will be available for_inspection -at ---lie-C3-t-y-L Municipal. Building. (3) Notice of Rate Change. Prior to implementation of any increase in rates or charges for any service or equipment -74- provided by Company, Company shall provide City and all sub- scribers a minimum of thirty (30) days prior written notice of such change. In addition, Company 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 imple- mentation of such change. Company shall cablecast notice of such change on at least one channel of its CATV System at least hourly for at least thirty (30) days prior to the implementation of any rate change. Notwithstanding anything set forth in this Fran- chise Ordinance or any Subscriber Service Contracts, subscribers shall have the right to order disconnection of cable service after notice of rate increases, but prior to the date of that rate increase, without any charge to subscribers. Company may require return of any Company's equipment as part of an order to disconnect cable-service. -No-subs.cr-ibe-r sl al-1 -be —billed --fox cable service received after an order for disconnection pursuant to this Section. (4) Service Calls. Service requests for maintenance or repair of cable facilities are performed at no charge unless such maintenance or repair is required as a result of damage caused by a subscriber. r f SECTION 9 — 718 CONDITIONS OF PUBLIC PROPERTY OCCUPANCY (1) Approval of Proposed Construction. The Company shall first obtain the approval of the Director of Public Works before any construction is commenced on streets, alleys, sidewalks, driveways, public property or places of the City. Application for approval of construction shall be in a form specified by the Director of Public Works. The Company shall give the City rea- sonable written notice of proposed construction to allow coor- dination of all work between the City and the Company. (2) Excavation Permits. Company shall not open or disturb the surface of a street, alley, sidewalk, driveway or public property for any purpose without first having obtained a permit to do so in the manner provided by ordinance. Company may apply for a single permit for all excavation. , The amount charged. by City to Company for such permit shall be fair and reasonable. (3) Changes Required by Public Improvements. Whenever the City undertakes any public i provement whir.h_aff_acts-CAT-V-equ-i-p- ment, it shall direct the Company to remove or relocate such equipment from the area of public improvement, at Company's expense. Specifically, Company shall, at its expense, protect, -76- support, temporarily disconnect, relocate in or remove from a street, alley, sidewalk, driveway, or public property or place any property of the Company when required by the Director of Public street street Works by reason of traffic conditions, public safety, vacation, street construction, change or establishment of grade, installation or improvement of sewers, drains, water pipes, power lines, signal lines, tracks or any other type of structure, improvement or alteration of public property. If this public improvement also requires public utilities to remove or relocate their equipment and the City reimburses the utilities for their expenses incurred in the removal or relocation, the City shall reimburse the Company on the same terms and conditions it reimburses the utilities. If the utilities are reimbursed by some source other than the City, then City shall not be required to reimburse the Company for its expenses. (4) Interference With or Hazard to Persons and Improvements. The Company's CATV System, including all wires, conduits, cables and other property and facilities, shall be located, constructed, installed and maintained so as not to en- danger or unnecessarily interfere with the lives of persons or with the usual and customary trade, traffic and travel upon the streets, alleys, sidewalks, driveways or public property and places of the City. The Company shall keep and maintain all of 1 1 its property in good condition, order and repair and make it available for inspection at any reasonable time and upon reason- able notice. The City shall have the right to inspect and exam- ine property owned or used, in part or in whole, by the Company. Company shall not place poles or other equipment where they will interfere with the rights or reasonable convenience of adjoining property owners, or with any gas, electric, or telephone fixtures or with any water hydrants or mains. All poles or other fixtures placed in a street shall be placed in the right-of-way between the roadway and private property as specified by the Director of Public Works. (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, in compliance with engineering and safety considerations and standards. Any portion of a CATV System that is installed in a park or publicly owned open space area shall be installed underground in a manner__approved---b-y—t-he City. All installations shall be underground in those areas of the City where public utilities providing either telephone or electric utility facilities are underground at the time of -78- installation. In areas where both telephone and electric utility facilities are above ground at the time of installation, the Company may install its service above ground provided that at such time as those facilities are required to be placed under- ground, the Company shall likewise place its facilities under- ground without additional cost to the residents of the City except as provided under the provisions of Section 9-717(4). (6) Protection of Facilities. Nothing contained in this Franchise Ordinance shall relieve any person, company or cor- poration from liability arising out of the failure to exercise reasonable care to avoid injuring Company's facilities while performing any work connected with grading, regrading, or changing the line of any street or public place or with the con- struction or reconstruction of any utility facility, sewer or water system. (7) Notice of City Improvements. The City shall give the Company 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 Company to make any additions, alterations, or 1 1 repairs to its facilities deemed necessary, considering seasonal working conditions in advance of the actual commencement of work. (8) Compliance with Codes. All construction, installa- tion, maintenance and operation of CATV Systems 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 Under- writers, the Bell Telephone System Code of Pole Line construc- tion, standards issued by the FCC or other federal or state regu- latory agencies, and local zoning regulations. Every CATV System 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 prop- erty in the City. (9) Moving Wires. Upon request made at least five (5) days in advance by a holder of a building moving permit for the purpose of moving buildings, the Company 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 amou-n-t-in-advanre-. (10) Trimming Trees. All trimming shall be done under the supervision and direction of the City and at the expense of the Company. The Company shall not remove any tree within any public place without the prior consent of the City. The Company shall be allowed to trim trees upon and overhanging streets, alleys, sidewalks, driveways and public grounds and places of the City to prevent the branches of the trees from coming in contact with the wires and cables of Company. Regardless of who performs the work, the Company shall be responsible and shall defend and hold City harmless for any and all damages to any tree or surrounding land as a result of the trimming or removal. (11) Restoration to Prior Condition. In case of any dis- turbance of pavement, sidewalk, driveway, foundation or other surfacing, the Company shall, at its own cost and expense and in a manner approved by the City, replace and restore all paving, sidewalk, driveway, foundation or surface of any street or`alley disturbed, in as good condition as before the work was commenced and in accordance -with standards for such -work --set--by--t-he-Ci-t-y. If, upon reasonable written notice, the Company fails promptly to restore any street or public place in accordance with this pro- vision, the City shall have the right to put such street or pub- lic place back into good condition at the expense of the Company and the Company shall, upon demand, pay to the City and the cost of such work done or performed by the City. 1 1 (12) Maintenance of System. Company shall erect and main- tain all parts of its CATV System in good condition throughout the entire franchise pzriod. (13) Efficient Service and Repairs. Company shall render efficient service, make repairs and adjustments promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum system use. All costs incurred in making such repairs and adjustments shall be borne by the Company except as otherwise provided for in this Franchise Ordinance. (14) Interference With Reception. Company shall not allow its cable or other operations to interfere with the, broadcast reception of persons not served by Company. (15) Record of Equipment and Facilities to be Maintained. The Company shall at all times make and keep at its business office complete and accurate plans and records showing the exact location of all CATV System equipment and facilities installed or in use in the City and make available such maps and records for the City's inspection immediately___u.pon—reques-t.—The--Company shall furnish the City a current record of equipment and facil- ities and maps, drawn to scale, showing all CATV System equipment installed or in use in the City. -82- SECTION 9-719 OPERATION OF THE FRANCHISE/CONSUMER PROTECTION (1) Consumer Service Policies. After adoption of this Franchise Ordinance and acceptance by Company, designees of the City and Company shall meet to develop policies that will provide consumer service procedures by which Company and City shall abide. It is the intention of the City and Company that the policies will provide the means to ensure that Company, not City, will handle, in a prompt, polite and responsive manner, all mat- ters relating to the consumer and the relationship between the consumer, City and Company, excluding inquiries as to the provi- sions of this Franchise Ordinance which shall be handled by the City. The policies-sha-1-1 -be-completed_f_or_semiew_=and -approval- -by the City Manager within sixty (60) days after the date of accep- tance of this Franchise Ordinance. After the policies have been approved by the City, they will immediately be incorporated in this Franchise Ordinance by way of amendment. (2) Consumer Complaints. Any person may file complaints regarding inadequate service response or any other aspect of the CATV System in writing at the office of the City Manager. Upon complaint to the Company by any person either at its office, by 1 1 letter, or by telephone, Company shall promptly make an appro- priate investigation and advise the complainant of the results thereof. If the person is dissatisfied with the results, the Company must advise the complainant of the complaint procedures of the regulatory authority, including those set forth in this Franchise Ordinance. (3) Repairs and Maintenance. (a) Maintenance of the System. The Company shall install and maintain the CATV System so as to avoid unrea- sonable or repetitive interruptions in service to subscribers. (b) Interruption of Service. Whenever it is neces- sary to interrupt service to make tests, repairs, adjust- ments or installations, the Company shall do so during a period of minimum subscriber use. Unless an interruption is unforeseen and immediately necessary, the Company shall give reasonable notice to the subscribers affected. All costs incurred in effecting such tests, repairs, adjustments or installations shall be borne by the Company unless otherwise provided by__law, ordinance or regulation. (c) Service Response and Rebate. (i) During the term of the Franchise Ordinance and any renewal or extension, the Company shall keep -84- its business office open during normal business hours (and in no event less than 9:00 a.m. to 5:00 p.m.), Monday through Friday excluding legal holidays. Company shall maintain a listed telephone and be equipped to receive complaints twenty-four (24) hours a day, seven days a week. This office shall be main- tained for the purpose of receiving and resolving all complaints regarding the quality of service, equipment malfunctions, billings disputes, and similar matters. (ii) The Company shall also provide prompt ser- vice response, seven days a week for all 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 1:_00 _p-.m-.-ex-ca.ed_-twenty-foux -(244 -hours and all service complaints shall be investigated and acted upon within twenty-four hours. All service com- plaint(s) shall be resolved within three (3) calendar days, excluding holidays. (iii) If the Company fails to correct a CATV System service deficiency within twenty-four (24) hours, it shall rebate or credit 1/30th of the monthly charge for "Cable Service" to each subscriber for each r f i twenty-four (24) hours or fraction thereof after the first twenty-four (24) hours during which a subscriber is without service following the report of loss of service, except to the extent that restoration of ser- vice is prevented by strike, injunction or other cause beyond the control of the Company. (iv) Company 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, Com- pany shall make service repair and maintenance per- sonnel available at least twelve (12) hours per week outside of normal business hours. - (4) Reports, Books and Records of Company. (a) City's Right to Audit. City shall have the right to audit Company's accounting and financial records upon reasonable notice. (b) Report on Operations. The Company shall prepare and furnish to the City at the time and in the form pre- scribed by the City Manager, _such _.repo-r-t-s--wi-t-h—re-spe-ct -to its operations, affairs, transactions or property, as may be determined reasonably necessary or appropriate by the City. -86- (c) Report on Complaints. The Company shall keep a maintenance service record which will indicate the nature of each service complaint, the date and time it was received, the disposition of each complaint and the time and date of disposition. From this record, the Company shall 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. (d) Records and Property Available for Inspection. At all reasonable times, the Company shall permit any duly authorized representative of the City to inspect, examine or audit all records and property of the Company situated within or without the City, and to examine and transcribe any and all maps and-other records-kept-=or—maintained by the Company or under its control which deal with the operations, affairs, transactions or property of the Company with respect to this Franchise Ordinance. If any such maps or records are not kept in St. Louis Park, 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 1 necessarily incurred in making such examination shall be paid by the Company. (e) Report on Channel Use; Notice. The Company shall maintain on file with the City a report stating the CATV System channel capacity, listing the cable television channels which the CATV System delivers to its subscribers, and the television station or stations whose signals are delivered on each channel of the CATV System under normal operating conditions. When television stations are to be deleted or added, the City and all subscribers shall be notified in writing thirty (30) days prior to the date of a deletion or addition. (f) Annual Report. Within one hundred twenty (120) days of the end of its fiscal year, including the year in which the Franchise Ordinance becomes effective, Nortel Cable Associates, L.P. ("Nortel"), shall file with City an annual report consisting of the following: (i) A sworn financial statement including a statement of income, revenues, operating expenses, capital _-expendi-t-ur-ees,---de-p-r-eciaticin-arith—an attached depreciation schedule, interest paid, taxes paid and balance sheets for the operating company consisting of the CATV System in the City, as well as all of Nortel's -88- CATV Systems in the Twin Cities metropolitan area, and a certified statement of gross revenues of the CATV System of City. The CATV System revenue statement shall be in a form and manner approved by City and shall delineate specific revenue source categories and revenues. (ii) A current list of names and addresses of each officer and director and other management person- nel of the Company, as well as each shareholder having stock ownership of three percent (3%) or more. (iii) A copy of each document filed with all federal, state and local agencies during the preceding fiscal year and not previously filed with City. (iv) A statement of Nortel's current billing practices. (v) A current copy of Nortel's access rules. (vi) A current copy of Nortel's subscriber service contract. (vii) A statement listing all production equip- ment provided for use with the CATV System. (viii) A statement listing all production equip- ment of Company which will be utilized by more than one (1) cable system. 1 (ix) The requirements of Section 9-719(5) below. (x) The requirements of Section 9-719(6) below. (5) Filing Communications with Regulatory Agencies. Copies of all petition, applications and communications that are submitted by a Company to the FCC, or other federal or state regulatory commission or agency having jurisdiction in respect to any matter affecting CATV System operations within the City, shall also be submitted simultaneously to the City by filing the same with the City Manager. (6) Plan Filed. The Company shall submit, in each annual report, 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 originating pro- grams. The plan shall also contain the following: (a) An estimate of the total number of broadcast hours per week per channel which the Company proposes to devote to local programming. (b) The types of local programs it proposes to originate. (c) A proposed programming schedule for locally originated channels. (d) A description of the proposed marketing program. (e) Plans for providing a duplex system and FM mul- tiplex stereo and music channels. (f) Company goals regarding subscribership, Basic/Pay ratio, advertising and other revenue sources. (7) Rules of the Company. The Company may promulgate such rules, regulations, terms and conditions governing the conduct of its business as may be reasonably necessary to enable it to exer- cise its rights and perform its obligations under the Franchise Ordinance and to assure an uninterrupted service to any and all of its customers; except that such rules, regulations, terms and conditions shall not be in conflict with the provisions of this Franchise Ordinance, other ordinances of the City, or the laws of the State of Minnesota or the United States. A current copy of such rules, regulations, terms and conditions shall be filed with the City. (8) Approval of Service Contract. If a written service contract is used by a Company in its dealings with subscribers, the Company shall obtain City approval of the form and terms of the contract prior to entering into any such service contracts. The Company 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 the City by Company and maintained and available for public 1 inspection at.Municipal Building of City. If no written service contract is used by Company in its dealings with subscribers, the Company shall prepare, in a form 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 autho- rized by federal law. (9) Company Assistance in Developing Public Uses. The Company shall assist the City in developing the full capabilities of cable television for public use, including but not limited to, its application to such public services as traffic surveillance, monitoring flows in water and sewer lines, measuring air pollu- tion through sensor systems, public service messages, training of personnel, fire and burglary detection, data processing, polling and surveying. (10) Preferential or Discriminatory Practices Prohibited. (a) The Company shall establish and maintain an Equal Employment and Affirmative Action Program providing that -no individual shall be discriminated against with respect to compensation, terms,—condltieas or -ot-h-e-r--p-rivi- leges or employment because of race, color, creed, religion, sex, national or ethnic origin, physical condition, age, affectional preference or marital status. The Company's -92- Equal Employment and Affirmative Action Program shall be maintained on file with the City Manager and shall be in compliance with current and future policies established in the City's Affirmative Action Program, as well as with Section 635 of the Cable Act of 1984. The Company shall strictly adhere to the Equal Employment and Affirmative Action Program it files. (b) The Company shall not deny cable television service, deny access, or otherwise discriminate against any person or organization who requests such service for a law- ful purpose, nor shall the Company refuse any person or organization the right to cablecast pursuant to provisions of this Franchise Ordinance. The Company shall comply with all requirements of federal, state and local laws and regu- lations relating to -nondiscrimination_. -Company sha11 _no_ta as to rates, charges, service facilities, rules, regulations or in any other respect make or grant any preference or advantage to any person, nor subject any person to any pre- judice or disadvantage. 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 1 of charges and classified rate schedules to which any cus- tomer coming within such classifications shall be entitled. (c) The entire business of the Company 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. No one shall be arbitrarily ex- cluded from its use. Allocation of use of said facilities shall be made according to the rules or decisions of regula- tory agencies affecting the same, and where such rules or decisions are not effective to resolve a dispute between conflicting users or potential users, the matter shall, be submitted for resolution by the Council. (d) The Company shall comply with or exceed all federal, state and local laws and regulations relating to equal employment opportunity. (11) Subscriber Privacy. Company shall not, without City approval, initiate or use any form, procedure or device for pro- curing information -or data —f-r-om-cab'__ sy t-ern---s-abser-ibe-r-s ' 1eriiri- naffs by use of the cable system. At all times, Company shall abide by the subscriber privacy provisions set forth in Section 631-32 incorporated by reference herein. -94- Company 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. Company shall not place in any dwelling unit of subscribers any equipment capable of two-way communications without the written consent of the sub- scribers, and will not utilize the two-way communications capa- bility of the CATV System for unauthorized subscriber surveil- lance of any kind. (a) No signals of a Class IV cable communications channel may be transmitted from a subscriber terminal for purposes of monitoring individual viewing patterns or prac- tices without the express written permission of the sub- scriber. 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 pen- alty 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 whatsoever. Such permission shall be required for 1 each type of classification of Class IV cable communications activity planned for the purpose of monitoring individual viewing patterns 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 Company and its employees for internal business use, and also to the sub- scriber subject of that information, unless Company has received specific prior written authorization from the sub- scriber to make such data available. (c) Written permission from the subscriber shall not be required for conducting systemwide or individually addressed electronic sweeps for the purpose of verifying system integrity, monitoring for the purpose of billing, or detecting unauthorized reception of communications on the CATV System. Confidentiality of such information shall be subject to t he p r mision-set forth -i n—pa-r-agr t--(b-)—of this Section. (d) At the time of entering into an agreement to provide any cable service or other service to a subscriber -96- and at least once a year thereafter, the Company shall pro- vide notice in the form of a separate, written statement to each subscriber which clearly and conspicuously informs the subscriber of: (i) 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; (ii) the nature, frequency, and purpose of any disclosure which may be made of such information, in- cluding an identification of the types of persons to whom the disclosure may be made; (iii) the period during which such information will be maintained by the Company; (iv) _the _times _and place at - which -subscribers may have access to such information in accordance with subsection (e); and (v) the limitations provided by this Section with respect to the collection and disclosure of infor- mation by Company and the right of the subscriber under subsection (g) to enforce such limitations. For the purposes of this Section, the term "personally identi- fiable information" does not include any record of r f 1 aggregate data which does not identify particular persons. (e) A cable subscriber shall be provided access to all personally identifiable information regarding that sub- scriber which is collected and maintained by Company. Such information shall be made available to the subscriber at reasonable times and at a convenient place designated by Company. A cable subscriber shall be provided reasonable opportunity to correct any error in such information. (f) Company shall destroy personally identifiable information if the information is no longer necessary for the purpose for which it was collected and there are no pending requests or orders for access to such information under subsection (e) or pursuant to a court order. (g) Any person aggrieved by any act of Company in violation of this Section may bring a civil action in a United States District Court or the District Court of Hennepin County, Minnesota. If an action is brought, the court may award: —d-ama-ges--bort--nut -i e s s —t ha n liquidated damages computed at the rate of $100.00 a day for each day of violation or $1,000.00, whichever is higher; -98- (ii) punitive damages; and (iii) reasonable attorneys' fees and other litigation costs reasonably incurred. The remedy provided by this Section shall be in addition to any other lawful remedy available to a cable subscriber. (12) Ownership Interests Prohibited. Ownership interests shall be consistent with the requirements of applicable federal and state laws. (13) 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 Ordinance. Company has therefore agreed to upgrade its CATV System on an ongoing basis so that it is of a technical quality comparable to or -better than the CAT-V Systems in-Fridley and Bloomington as well as those other CATV Systems which presently exist or may exist in the future in other Twin Cities metropolitan communities (with populations of 100,000 or less) in which the Company offers services, as is required by Section 9- 712 of this Franchise Ordinance. Therefore, in order to provide for a maximum degree of flexibility in this Franchise Ordinance, and to help achieve a continued advanced and modern CATV system, the following evaluation provisions will apply: 1 1 (a) City hereby is given the right to adopt rules and regulations controlling the procedures as set forth below and identifying subjects for evaluation and renegotia- tion sessions. In the absence of any City action taken to exercise these rights, Company shall be subject to at least the procedures and subjects described in this Section. (b) City may require, at its sole discretion, rea- sonable evaluation and renegotiation sessions in years five (5) and seven (7) and, if the franchise is extended to year twenty (20) pursuant to Section 9-723, City may require sessions in years twelve (12), and seventeen (17). The City also reserves the right to require evaluation and renegotiation sessions on a more frequent basis, upon reasonable notice to Company. In addition, such evaluation and renegotiation sessions shall be conducted at such times as required by federal or state law. (c) To assist in evaluation, City may enlist an independent consultant mutually agreed upon by City and Company to conduct an analysis of the CATV System and its pe r f o r -ma n c e -mad- moo_ subm.i —a _r-eport _of such-a-na-1-y-s-is -to —the City. All reasonable consultant fees and costs incurred as a result of evaluation and renegotiation sessions shall be paid by Company to the extent allowable under applicable -100- law. Such costs are considered additional and are not to be reimbursed from franchise fees collected. (d) Unless additional topics are agreed upon by Company and City, topics which may be discussed at any eval- uation and renegotiation session include: (i) Computer uses; (ii) Service rate structure; (iii) Interconnection; (iv) Franchise Ordinance fees; (v) Penalties; (vi) Free or discounted services; (vii) Application of new technologies; (viii) Technical standards; (ix) System performance; (x) Services provided; (xi) Programming offered; (xii) Access channels, facilities and support; (xiii) Municipal uses of cable; (xiv) Educational uses of cable; (xv) Use and promotion of institutional network; (xvi) Local origination; (xvii) Consumer protection; (xviii) Privacy; (xix) Amendments _to__thi..s_ F_ ancbise O-r-di-nanee; (xx) Judicial rulings; (xxi) Government agency rulings; (xxii) FCC rulings; (xxiii) Line extension policies; (xxiv) Insurance; (xxv) Company rules; (xxvi) City rules; (xxvii) Construction of a separate institutional network.; (xxviii) The need for providing installations and con- tractual arrangements for additional data bases and for additional bandwidth for data transmission on the CATV System; (xxix) Stereo service; and (xxx) Channel capacity. r 1 1 1 (e) During an evaluation and renegotiation session, Company shall fully cooperate with City and shall provide without cost such information and documents as City may request reasonably to perform evaluation and conduct renego- tiation. (f) If, as a result of the evaluation and renegotia- tion session, or at any other time, City determines that reasonable evidence exists of inadequate CATV System perfor- mance, it may require Company to perform tests and analyses directed toward such suspected inadequacies at the Company's own expense. Company shall fully cooperate with City in performing such testing and shall prepare a report with the testing results. The report prepared by Company shall include at least: (i) A description of the problem in CATV System performance which precipitat-ed -he -special tests. (ii) A description of the CATV System component tested. (iii) The equipment used and procedures employed in testing. (iv) The method, if any, by which such CATV System performance problem was resolved. (v) Any other information pertinent to the tests __and analyses_whi_ch-may be-requ-i-r-ed---by- City,—or determined when the test is performed. City may require that these tests described above be supervised at Company's expense by a consultant designated by City. The consultant shall sign all records of special -102- tests and forward to City such records with a report inter- preting the results of the tests and recommending actions to be taken. (g) As a result of an evaluation and renegotiation session, City or Company could determine that a change in the terms of the Franchise Ordinance may be required, that the CATV System or Franchise Ordinance requirements should be updated, changed, or that additional services should be provided. If the change is consistent with the terms of this Franchise Ordinance, the needs of the City and current technology (or due to regulatory, technical, financial mar- keting, inflation or legal requirements) and implementation of a change would not unreasonably add to the cost of pro- viding CATV services, Company and City will, in good faith, negotiate the-terms_of _the _.change .and -any--r-equi-r-ed-amendtiten-t to this Franchise Ordinance. Upon adoption of such an amendment, if one is required, the change will become ef- fective and Company shall accept same. In the event Company fails to negotiate a requested change of the City, the City may enforce the procedures of this Section by any available remedy. r 1 1 (14) Annual Opinion Survey. (a) Commencing in 1989 and annually thereafter, Com- pany shall, no earlier than ninety (90) days and no later than thirty (30) days prior to submitting its written annual report to the City, conduct a survey prepared by Company which identifies the programming preferences of subscribers and which identifies subscriber satisfaction or dissatisfac- tion with the maintenance and complaint practices of Company. (b) The survey and report shall be prepared and conducted in conformity with such requirements, including supervision and review of the returned surveys, as the City may prescribe. (c) Each questionnaire shall be prepared and con- ducted so as to provide a measurement of subscriber prefer- ences for: (i) Programming offered by Company at the time the survey is conducted; and (ii) Programming generally available to cable sub- scribers -n-a-t-i-o-na ub- scribers-n-at-1-o-na l l y--but—not--offer ed -by--Company at he time the survey is conducted together with the incre- mental cost per subscriber for providing such programming. -104- (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 con- ducted so as to provide a measurement of subscriber satis- faction or dissatisfaction with the maintenance and com- plaint practices of Company. (f) Company shall make reasonable good faith efforts to promote subscriber awareness of the survey and the pro- gramming generally available to cable subscribers but not offered by Company. (g) The survey results shall be compiled and pub- lished by Company in a manner readily comprehensive to the public and shall be made available for _public review wJthi,n City at locations and times convenient to the public. Upon request of City, Company shall make the subscriber returns available for City review and inspection. (h) Company shall, together with its written annual report, provide a written compilation report of the survey results and report in writing what steps Company is taking to implement the findings of the survey. r f 1 (i) In the event twenty percent (20%) or more of those surveyed report dissatisfaction with Company's main- tenance and complaint practices, Company shall have sixty (60) days from the date that City receives such a report to develop an action plan regarding new maintenance and com- plaint practices, as approved by City. This action plan then must be implemented expeditiously. In the event that Company fails to carry out the responsibilities of this Section, City may impose penalties for violations of this Section. (15) Technical Inspections and Evaluations. The City and Company shall, at the request of the City, undertake an inspec- tion of the CATV System to ascertain the CATV System performance at extremities of each trunk with mutually agreed upon test equipment at the following periods: (i) completion of the System Rebuild on or before the end of year two (2) of this franchise; (ii) year seven (7) of this Franchise Ordi- nance, in conjunction with the evaluation of the Upgrade Plan; (iii) upon completion of the System Upgrade by the end of year ten (10) of this (iv) years thirteen (13) and seventeen (17) of this Franchise Ordinance (if Franchise Ordinance is renewed or extended beyond year ten (10).] -106- (a) The City shall give written notice to Company of the City's intention to undertake an inspection of the CATV System and the name of that person who will participate for the City. (b) Company shall, within two (2) days of receipt of the City's notice, select one (1) person who will partici- pate for Company and so notify the City. (c) The representatives of the City and Company shall, within three (3) days of the selection of the Com- pany's representative, select a third representative who need not be trained in cable television technology. (d) Within ten (10) days after the appointment of all representatives, they shall commence an inspection of the CATV System in accordance with applicable standards of the National -Cable Television Association -and -the ---FCC-t-o ensure the quality of the signal at the headend and delivery of the signal through the CATV System to the subscribers. (e) The representatives shall prepare and submit to the City and Company a written report of its findings and any appropriate recommendation. (f) Upon request of the City, Company shall report to the City, at a regular or specially scheduled meeting of the City, what steps are being taken to correct deficiencies r up 1 1 1 noted in the report or why corrective measures are not • necessary. -108- SECTION 9 - 720 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 rights to eminent domain, in- cluding the right of the City to acquire the property of the Company 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 under the Franchise Ordinance. (2) Company 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 t-he Company by its acceptance of the Franchise Ordinance, agrees to be bound by its terms and to comply with any action or require- ments 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 Intervention. The City shall have the right to intervene and the Company specifically agrees by its acceptance of the Franchise Ordinance not to oppose such 1 1 intervention by the City in any suit or proceedings to which the Company is a party. (4) Powers of the City. Neither the granting nor enforce- ment of any provision governing the Franchise Ordinance shall constitute a waiver or bar to the exercise of any other right or power of the City. (5) Administration of Franchise Ordinance. Subject to the control and direction of the Council, the City Manager of City, or City Manager's designee, shall be the designated administrator responsible for the continuing Ordinance. (6) Resolution of Disputes and Appeal Procedures. City may do all things which are necessary and convenient in exercise of its jurisdiction under this Franchise Ordinance administration of the Franchise The the 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 Company, either on behalf of the City, or the Company, in the best interests of the public. If the Company Js -_d is s a t i n f.ied-Uzi-t-h—t-he--de c -i -s- an- -o f —the -C i y Manager, an appeal may be taken to the Council for hearing and final determination. The Council may accept, reject, or modify the decision of the City Manager, and the Council may adjust, settle or compromise any controversy arising from the operations of Company or from any provision of this Franchise Ordinance. The decision of the Council shall be final. (7) City's Transfer of Functions. Any right or power conferred, 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. SECTION 9 - 721 ENFORCEMENT (1) Failure to Enforce Provisions. The Company shall not be excused from complying with any of the terms and conditions of the Franchise Ordinance by any failure of the City upon one or more occasions to insist upon or to seek compliance with any such terms or conditions. (2) Contravention of Franchise Ordinance. In the event the City is the prevailing party in litigation by the City to enforce this Franchise Ordinance or in relation to a franchise or the revocation of a franchise, Company shall reimburse the City for any costs incurred by City in connection with that litigation. Such costs shall include filing fees, costs of depo- sitions, discovery, and expert witnesses, all other expenses of suit, including reasonable attorneys' fees and costs and disbursements. (3) Penalties. In addition to any other remedies provided in this Franchise Ordinan��f�-0x v�-01atet�s o£ -hs Franchise Ordinance are set forth below. In the event that the violations identified below occur and are not corrected by Com- pany within the respective time periods specified, the penalties -112- may be greater than the sums delineated herein. These penalties shall not be deemed the City's exclusive remedy. As a result of any acts or omissions by Company pursuant to the Franchise Ordi- nance, City may charge to and collect from the Company, by drawing on the Letter of Credit set forth in Section 9-710(2), or otherwise, the following penalties: (a) For failure to complete System Rebuild by the end of year two (2) of this franchise; or the System Upgrade by the end of year ten (10) of this franchise, in accordance with any approved Upgrade Plan; unless City approves the delay, the penalty shall be Five Hundred Dollars ($500.00) 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 coop- erate with the City during a renewal process, CATV System Evaluation and Renegotiation Session, or in the conduct of City's Franchise Ordinance 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 Ordinance after ten (10) days' notice, for r f 1 1 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 performance of the CATV System following a request by the City as set forth in this Franchise Ordinance and after ten (10) days' notice, the penalty shall be Fifty Dollars ($50.00) per day. (e) For failure by Company to modify the CATV System or to provide additional services within the time required by the City following a periodic Evaluation and Renegotia- tion Session, the penalty shall be Two Hundred Dollars ($200.00) per day. (f) For failure of Company to comply with the con- struction, 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 Company proposed pursuant to any re- newal proposal or pursuant to the broad categories of ser- vice required --by-this-f-r Inance, -the pez Tty shall be One Hundred Dollars ($100.00) per day. (h) For failure to comply with all conditions of City permits to disturb streets, fix streets, or other terms -114- or conditions of City, the penalty shall be Fifty Dollars ($50.00) per day. (i) For failure to submit the Upgrade Plan pursuant to Section 9-723(3), by July 1 of year eight (8), the penalty shall be $500.00 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 failure or delays are a result of acts of God or circumstances beyond the reasonable control of Company. (4) Procedure for Imposition of Penalties. Whenever City finds that Company has violated one (1) or more terms, conditions or provisions of this Franchise Ordinance, a written notice shall be given to Company informing it of such violation or liability. Company may, within --ten -(10-) -days of notice, notify City t-ha-t there is a dispute as to whether a violation or failure has, in fact, occurred. Such notice by Company to City shall specify with particularity the matters disputed by Company. (a) City shall hear Company's dispute at a regularly scheduled meeting of the Council. City shall supplement the decision with _wr-itten__findings of fact. (b) Upon a determination by City that a violation or liability exists, City may draw appropriate sums on the 1 Letter of Credit. Company shall pay all costs associated with hearings to the extent allowable under applicable law. (c) The Letter of Credit deposited pursuant to this Franchise Ordinance shall become the property of City in the event that the Franchise Ordinance is cancelled by reason of the default of Company or revoked or terminated for cause. Company, however, shall be entitled to the return of such Letter of Credit, or portion thereof, as remains on deposit at the expiration of the term of the Franchise Ordinance, or upon termination of the Franchise Ordinance at an earlier date, provided that such termination is not with cause and there is then no outstanding default on the part of Company. (5) Other Rights, Including Revocation, Reserved. The rights reserved to City with respect to the Letter of Credit are in addition to all other rights of City whether reserved by this Franchise Ordinance or authorized by law; including, without limitation, the City's right to revoke or terminate the franchise issued pursuant to this Franchise Ordinance. No action, pro- ceeding or exercise of a right with respect to such security fund shall affect any _o_t ier_xi.ght-City-may-have. -116- SECTION 9 - 722 RIGHT OF AMENDMENT RESERVED TO CITY The Company recognizes the right of City to make reasonable amendments to this Franchise Ordinance during the term of the Franchise Ordinance upon sixty (60) days' prior notice to the Company or without notice in the case of emergency amendments. r 1 SECTION 9 - 723 RENEWAL (1) Extension Process. In the event the Company submits an Upgrade Plan to City by July 1 of the eighth (8th) year this franchise, and completes construction of a System Upgrade in accordance with an approved Upgrade Plan not later than the end of the tenth (10th) year of the term of this Franchise Ordinance, the franchise term shall be extended for a term of ten (10) years beginning with the end of the tenth (10th) year of the term of this Franchise Ordinance, and continuing to year twenty (20). The requirements with regard to the System Upgrade and completion of construction in accordance with the Upgrade Plan are set forth in Section 9-723(3) of this Franchise Ordinance. In the event the Upgrade Plan process is not abided by as set forth in Section 9-723(3), the term of this Franchise Ordinance shall end after ten (10) years. (2) Renewal Process. Regardless of whether the franchise is extended f r om-t-een—(-1-0-)- t -o ---twent-y--(-2fl-)--rears , -t-he f o 11 ow -i -n g renewal process shall be complied with by Company: (a) Company may apply for the renewal of the franchise, according to the process set forth in this -118- Section, no earlier than three (3) years and no later than one (1) year before the expiration date of the franchise, unless the Council determines that the City's interests would be best served by allowing Company to make an earlier application. During the six-month period which begins with the 36th month before the Franchise Ordinance expiration, the City may, on its own initiative, and shall, at the request of the Company, begin to conduct a franchise renewal process established by the City consistent with this Section. The City shall, at a minimum, commence proceedings which shall afford the appropriate public notice and participation for the purposes of: (i) identifying the future cable-related commu- nity needs and interests; and (ii) reviewing the performance of -the -Company under the Franchise Ordinance during the then current Franchise Ordinance term. (b) Upon completion of a proceeding under subsec- tion (a), Company may, on its own initiative or at the request of City, submit a proposal for renewal. Any such proposal shall be pursuant to a Request for Proposal pre- pared by City and on forms prepared by City and shall con- tain such material as the City may require, including 1 proposals for an upgrade of the cable system. The City may establish a date by which such proposal shall be submitted. (c) Upon submittal by Company of a proposal to the City for the renewal of the Franchise Ordinance, the City shall provide prompt public notice of such proposal and, during the four-month period which begins on the completion of any proceedings under subsection (a), renew the Franchise Ordinance or, issue a preliminary assessment that the Fran- chise Ordinance should not be renewed and, at the request of the Company or on City's own initiative, commence an admin- istrative proceeding, after providing prompt public notice of such proceeding, in accordance with paragraph (d) below to consider whether: (i) the Company has substantially complied with the material terms of the existing Franchise Ordinance and with applicable law; (ii) the quality of the Company's service, in- cluding signal quality, response to con- -sum -ex complaints, ani Milling practices, has been reasonable in light of community needs; -120- (iii) the Company has the financial, legal and technical ability to provide the services, facilities, and equipment as set forth in the Company's proposal; and (iv) the Company'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. (d) In any proceeding under paragraph (c), the Com- pany shall be afforded adequate notice and the Company and the City shall be afforded fair opportunity for full parti- cipation, including the right to introduce evidence (in- cluding evidence related to issues raised in the proceeding under subsection (a))-, -to requite --the —pr-odu-e-tion—of evi- dence, and to question witnesses. A transcript shall be made of any such proceeding. (e) At the completion of a proceeding under this subsection, the City shall issue a written decision granting or denying the proposal for renewal based upon the record of such proceeding; and transmit a copy of such decision to the Company. Such decision shall state the reasons therefor. r 1 1 (f) Any denial of a proposal for renewal shall be based on one or more adverse findings made with respect to the factors described in subparagraphs (i) through (iv) of subsection (c), pursuant to the record of the proceeding under subsection (c). (g) Company shall reimburse City for all of City's costs, including consultant and attorneys' fees, incurred in conjunction with consideration of a Franchise Ordinance renewal prior to the effectiveness of a renewal Franchise Ordinance. (3) Renewal Proposal. Notwithstanding the provisions of subsection (1) above, Company may submit a proposal for the re- newal of this Franchise Ordinance at any 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 for renewal under subsection (2). The City's denial of a franchise renewal pursuant to subsections (2) and (3) shall not-off-ect -its-atriI-i-ty-to extecid he Franchise Ordinance, should it choose to do so, upon satisfactory comple- tion of the System Upgrade in accordance with subsection (1). (4) Upgrade Plan. By July 1 of year eight (8) of this franchise, Company shall submit to the City an Upgrade Plan. The Upgrade Plan shall contain, without limitation, the following items: Expansion of the capacity of the CATV System to 550 MHz feed -forward operation with a channel capacity of 77 cable channels resulting through replacement of existing electronics by the end of year ten (10). In the event the City approves of the Upgrade Plan and Company completes the construction required by the approved Upgrade Plan by the end of year ten (10), the term of this franchise shall be automatically extended by ten (10) years, from the ten (10) year term to twenty (20) years. In the event that the City does not approve of an Upgrade Plan, or the Company does not complete the construction required by -the -Upgrade -Plan by the end of year ten (10), the term of the Franchise Ordinance shall be ten (10) years. Notwithstanding the requirements of this subsection, the City may, at its sole discretion, determine to renew the Franchise Ordinance pursuant to subsection (2) above. Company and City agree that the Company's violation of this subsection constitutes grounds for termination or revocation pursuant to Section 9-725; a refusal to extend the term of the r i 1 franchise beyond ten (10) years; as well as any other penalties set forth elsewhere in this Franchise Ordinance. -124- SECTION 9 - 724 REMOVAL AFTER TERMINATION OR REVOCATION (1) At the expiration of the term for which this Franchise Ordinance is granted, or upon its revocation or termination, as provided for herein, City shall have the right to require Company to remove, at Company's expense, all or any portion of the CATV System from all streets and public property within City. In so removing the CATV System, Company shall refill and compact at its own expense any excavation that shall be made by it and shall leave all streets and public property in as good a condition as that prevailing prior to Company's removal of the CATV System, and without affecting, altering or disturbing in any way electric telephone or other utility -cable, -wi-r-es -or -attachments. -City shall have the right to inspect and approve the condition of such streets and public property after removal. The Letter of Credit, Bonds, Insurance, Indemnity and Penalty provisions of the Fran- chise Ordinance shall remain in full force and effect during the entire term of removal. (2) If Company has failed to commence removal of System, or such part thereof as was designated by City, within thirty (30) days after written notice of City's demand for removal is 1 given, or if Company has failed to complete such removal within one year after written notice of City's demand for removal is given, City shall have the right to exercise any of the following options: (a) Declare all right, title and interest to the CATV System to be in City with all rights of ownership including, but not limited to, the right to operate the CATV System or to transfer the CATV System to another for operation. (b) Declare the CATV System abandoned and cause the CATV System or such part thereof, as City shall designate, to be removed at the expense of the Company. The cost of said removal shall be recoverable from the Letter of Credit, Bonds, Insurance, Indemnification and Penalties provided for in this Franchise Ordinance, or from Company directly as liquidated damages. (3) Any portion of the CATV System not designated by City for removal shall belong to and become the property of City with- out payment to Company and Company shall execute and deliver such documents, as ±he --City -i-n---form---amd— substance acceptable to City, to evidence such ownership by City. SECTION 9 - 725 EXPIRATION OR REVOCATION OF FRANCHISE (1) Expiration; Extended Operation. Upon the expiration of a Franchise Ordinance, the City may by resolution direct the Company to operate the Franchise Ordinance for an extended period of not to exceed six (6) months after the date of expiration. The Company agrees to comply with such a direction. All provi- sions of the Franchise Ordinance shall continue to apply to operations during an extension period. The City shall serve written notice at the Company's business office of intent to extend under this Section at least thirty (30) days prior to expiration. (2) Grounds for Termination or Revocation. In addition to all other rights and powers retained by the City under the fran- chise, the City reserves the right to terminate or revoke the franchise issued under this Franchise Ordinance and all rights and privileges of the Company in the event of a substantial breach of its terms and conditions. A substantial breach by Company shall include, but shall not be limited to, the following: r 1 1 (a) If Company substantially violates any material provision of the Franchise Ordinance; (b) If Company fails to begin or complete system construction or extension as provided under the Franchise Ordinance, including, without limitation, the requirements that a System Rebuild be completed by the end of year two (2), an approved Upgrade Plan be submitted by July 1 of year eight (8) and the System Upgrade completed by the end of year ten (10); (c) If a petition is filed by or against the Company under the Bankruptcy Act, or any other insolvency or credi- tors' rights law, state or federal and the Company shall fail to have it dismissed within ninety (90) days; (d) If a receiver, trustee or liquidator of the Com- pany is applied for or appointed for all or part of its assets; (e) If the Company becomes insolvent or makes an assignment for the benefit of creditors; (f) If Company attempts to evade any provisions of the Franchise Ordinance._ot (g) If Company attempts to dispose of any of the facilities or property, of its CATV System to prevent the City from purchasing it, as provided for herein; -128- (h) If Company has made material misrepresentations of fact in the application for or negotiation of this Fran- chise Ordinance; (i) If Company fails to replenish the fund secured by the Letter of Credit within thirty (30) days after final draw by City; (j) If Company fails to maintain bonds and/or insur- ance; and (k) If Company 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 may, after hearing before the Council, upon thirty (30) days written notice to the Company 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 addi- tional time in which the Company must remedy the occurrence. If the City determines that a fraud and/or misrepresentation has been alleged and proven to the Council's satisfaction, the City Council may not give Company any opportunity to remedy or comply. Written notice shall be given of the decision by the City. If the Company fails to remedy within the time specified, the City may revoke or terminate the Franchise Ordinance after public r r 1 1 hearing by repeal of the Franchise Ordinance. The repeal ordi- nance shall be effective not more than six months after its adoption. (4) Injunctive Relief. Pending final disposition of pro- ceedings to revoke a Franchise Ordinance, or during a period of extension of a Franchise Ordinance after expiration, the City may obtain injunctive relief to obtain compliance with the provisions of the Franchise Ordinance 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. If the City prevails, the costs shall be borne by Company including attorneys' fees, costs and disbursements.. (5) Right of City to Purchase; Disposition of Facilities. Upon expiration of the terms of the Franchise Ordinance, or upon receipt of application for approval of an assignment of the Fran- chise Ordinance or upon change of control of an assignment of the Franchise Ordinance or upon change of control as set forth in Section 9-707 (5) and (6), or if renewal of this Franchise Ordi- nance is denied the City shall have the right to acquire the CATV System. Any such- acqui-s4t- on--o-r-t-ransfer shall be at Fair market value, determined on the basis of the CATV System as a going concern but with no value allocated to the Franchise Ordinance itself and shall be made pursuant to the provisions of -130- Sections 9-725 (8) and (9) below. If the Franchise Ordinance held by Company 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 Fran- chise Ordinance Facilities. To protect the interests of the City under any franchise granted pursuant to this Franchise Ordinance, and in order that the City may exercise its option to acquire the facilities and property of the CATV System upon expiration or revocation of the rights and privileges of the Company, the Com- pany 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 concerning any of the-f-ac3-l3-dies-or -property, -real -or --person-al, of the CATV System, where such transaction would be inimical to the rights of the City under any Franchise Ordinance if consum- mated without adherence to the following provisions: (a) Without the express approval of the City, which shall not be unreasonably withheld, 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 r 1 1 1 Franchise Ordinance or the CATV System is created or vested, to the effect that such right, power, privilege, d1ty, title, interest, claim or demand is and shall be held and exercised subject to all the terms and provisions of the Franchise Ordinance, including this provision. The City may require such written assent to be contained in the instru- ment 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 Council shall determine what transactions may be inimical to the rights of the City. (7) City Right to Purchase System Upon Receipt by Company of a Bona Fide Offer. In addition to and in conjunction with Section 9-725 (5) and (6) above, City shall be entitled to a right of first refusal of any bona fide offer to purchase the CATV System made to Company. Bona fide offer as used in this Section means an offer received by Company that it intends to accept. In the event -City dec+des—t-o-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 Ordinance itself. In the event that the bona fide offer which Company intends to accept is -132- either cash or cash payable over a period of time, fair market value shall be the net present value of the bona fide offer. Fair market value may, at the City's election, be deemed to be the bona fide offer. (8) Procedures for Exercise of First Riaht of Refusal. In the event City elects to exercise its right to purchase the CATV System as provided in this Franchise Ordinance, the following shall then apply: (a) City and Company shall negotiate all terms and conditions of the purchase of the CATV System. (b) If City and Company 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 Arbitration Association and appl-icabI-e-M-i-nnesota lam—except as follows-: (i) 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 the field of cable communications systems and purchase and valuation of business prop- erty. Arbitrators shall each agree upon the selection of a third arbitrator, similarly qualified, within r 1 fifteen (15) days after appointment of second arbitrator. (ii) 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. (iii) 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. (iv) The arbitration panel shall be required to determine the purchase price of the CATV System according to the standards established in Section 9- 725(5) above. (v) At the close of the hearings and within thirty (30) days, the arbitrators shall prepare written findings—and-macre a written --decision agreed upon by a majority of the arbitrators which shall be served by mail upon City and Company. -134- (vi) The decision of a majority of the arbitra- tors shall be binding upon both parties except that City may, in its sole discretion and without any pen- alty 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. (vii) Either party may seek judicial relief to the extent authorized under Minnesota Statutes, M.S.A. SS 572.09 and 572.19 as the same may be amended, and, in addition, under the following circumstances: r (A) A party fails to select an arbitrator; 1 (B) The arbitrators fail to select a third arbitrator; IP 1 (C) One or more arbitrators 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. (viii) In the event a court of competent juris- diction determines the arbitrators have abused their discretion, it may order the arbitration procedure 1 -135- repeated and issue findings, orders and discretions, with costs of suit to be awarded to the prevailing party. (ix) Costs of arbitration shall be borne equally. (c) Company expressly waives its rights, if any, to 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. (9) Restoration of Property Upon Removal. In removing its plants, structures and equipment, the Company 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. Liabil- ity insurance and indemnity provided in Section 9-711 and the security for pe-r4Gr e---provi-ded -i-n-Section-9-1i-0-shai1 continue in full force and effect during the period of removal. The City shall have a right to all available remedies, including drawing on Company's Letter of Credit required by -136- Section 9-710(2) of this Franchise Ordinance, in order to enforce the requirements of this Section. i r 1 SECTION 9 - 726 ABANDONMENT Company shall not abandon the CATV System or any portion thereof without having first given three (3) months' written notice to City. Abandonment shall not occur unless first approved by the City after reasonable opportunity to review. Upon showing by Company of need for abandonment and an opportunity for the City to determine other areas for the continuity of service, the City shall evaluate any damage, claim or loss that may be appli- cable as a consequence of such abandonment. In order to accom- plish this, the City shall conduct a public hearing after pro- viding reasonable notice to all affected persons as to the date, time and place of the hearing. Thereafter, before abandonment occurs, the City shall notify the Company of its determination and any person, including City, entitled to damages and the amount and basis therefor. Company shall not abandon the CATV System or any porgy.ion__.t.her_eof---wi-t-hou-t—eompe-nsating —City lor damages resulting to it from the abandonment. -138- SECTION 9 - 727 UNAUTHORIZED CONNECTIONS It shall be unlawful for any person to make an unauthorized connection, whether physically, electrically, acoustically, in- ductively or otherwise, with any part of the franchised CATV System within the City for the purpose of taking or receiving television signals, radio signals, pictures, programs or sound. r 10 1 1 SECTION 9 - 728 SEVERABILITY; APPLICABLE LAWS & COURT DECISIONS (1) Company and City shall, at all times, comply with the decisions of the United States Supreme Court and' the appellate courts of the State of Minnesota, as well as with all the laws, ordinances and regulations of federal, state and City government relating to the CATV System and this Franchise Ordinance. (2) If any such decisions, laws, ordinances or regulations shall require or permit Company to perform any service or shall prohibit Company from conflict with the terms performing any service which may be in of this Franchise Ordinance, then as soon as possible following knowledge thereof, Company shall notify City in writing of the point of conflict believed to exist between this Franchise Ordinance and such law, ordinance or regulation. (3) If City determines that a material provision of this Franchise Ordinance —is -affected -by such decisions of United States Supreme Court and the appellate courts of the State of Minnesota, or any law, ordinance or regulation; City shall have the right to amend, modify, alter or repeal any of the provisions of this Franchise Ordinance to such reasonable extent as may be necessary to carry out the intent and purpose of this Franchise Ordinance, and Company hereby agrees to such amendment, modification, alteration or repeal of this Franchise Ordinance. (4) To the extent any reference in this Franchise Ordi- nance to outside documents, rules, or regulations has not validly incorporated the same by reference, City from time to time may amend this Franchise Ordinance to include such provision, to be effective as of the date of commencement of the Franchise Ordi- nance or of the effective date of adoption of the rule or regu- lation, whichever is later. Company, by acceptance of this Fran- chise Ordinance, consents to and agrees to be bound by any such amendments. r 1 1 1 SECTION 9 - 729 I WORKED PERFORMED BY OTHERS (1) Company shall give notice to City specifying the names and addresses of any other entity, other than Company, which performs services pursuant to this Franchise Ordinance, provided, however, that all provisions of this Franchise Ordinance remain the responsibility of Company. (2) All provisions of this Franchise Ordinance shall apply to any subcontractorlor others performing any work or services pursuant to the provisions of this Franchise Ordinance. 1 -142- SECTION 9 - 730 ADMINISTRATION & ADVISORY BODY (1) Administrator. The City Manager or the City Manager's designee shall be responsible for the continuing administration of this Franchise Ordinance. The administrator may be changed by City from time to time by written notice given to Company. (2) Advisory Body. City may appoint an advisory body to monitor the performance of Company in executing the provisions of this Franchise Ordinance. The advisory body shall perform all functions required of it by the Council and applicable laws, ordinances, rules and regulations. (3) Delegation--of—Authority--by-City. (a) City reserves the right to delegate and redele- gate from time to time any of its rights or obligations under this Franchise Ordinance to any body or organization. (b) Any delegation by City shall be effective upon written notice by City or Company of such delegation. (c) Upon receipt of notice by Company of City's dele- gation, Company shall be bound by all terms and conditions 1 of the delegation not in conflict with this Franchise Ordinance. (d) Any such delegation, revocation or redelegation, no matter how often made, shall not be deemed an amendment to this Franchise Ordinance or require any consent of Company. SECTION 9 - 731 TIME OF ACCEPTANCE; GUARANTEE; INCORPORATION OF OFFERING; EXHIBITS (1) Company shall have thirty (30) days from the last date of adoption of this Franchise Ordinance to accept this Franchise Ordinance in form and substance acceptable to City, unless the time for acceptance is extended by City. If this Franchise Ordi- nance is not accepted by Company in accordance with the terms of this Section, this franchise shall be null and void and without effect. (2) Upon acceptance of this Franchise Ordinance, Company shall be bound by -all the --terms and conditions -contained -herein. (3) Company shall have continuing responsibility for per- formance of the terms of this Franchise Ordinance, and if Company be a subsidiary or wholly-owned corporate entity of a parent corporation, performance of this Franchise Ordinance shall be secured by guarantees of the parent corporation in form and sub- stance acceptable to City, which shall be delivered at time of, and as part of, acceptance of this Franchise Ordinance. r r 1 (4) With its acceptance, Company also shall deliver to City an opinion from its legal counsel, acceptable to City, stating that this Franchise Ordinance has been duly accepted by Company, that the guarantees have been duly executed and deliv- ered, that this Franchise Ordinance and the guarantees are en- forceable against Company and the guarantors in accordance with their respective terms, and which opinion shall otherwise be in form and substance acceptable to City. (5) With its acceptance, Company also shall deliver to City true and correct copies of documents creating Company and evidencing the power and authority referred to in the opinion of Company's counsel, certified as of a then current date by public office holders to the extent possible and otherwise by an office of Company. (6) Company agrees that it will not, at any time, set up against City in any claim or proceeding, any condition or term of this Franchise Ordinance as unreasonable, arbitrary, void or that City had no power or authority to make such term or condition, but shall be required_to accept the validity of the terms and conditions of this Franchise_Or-di-Hance -in -t-herr entirety. (7) With its acceptance, Company shall also pay all costs and expenses, including attorneys' fee and publication costs incurred by the City in connection with the renewal process. The City shall provide an itemized statement to Company. Costs or expenses of the City not identified at that time shall be paid promptly by Company upon receipt of an itemized statement from the City. It is the intent of the City and Company that the City be reimbursed for all costs and expenses in connection with the granting of the Franchise Ordinance including any subsequent expenses due to delays or litigation pertaining to the grant of the Franchise Ordinance. With its acceptance, Company shall also deliver any security deposit, insurance certificates, performance bonds and access capital grants required herein. (8) All of the attached exhibits are a part of this Franchise Ordinance and each is specifically incorporated herein by reference. The exhibits are as follows: Exhibit A: Company's list of electronics and equipment to be used in the rebuild. Exhibit B: Listing of equipment for the studio facilities and the mobile van required by Section 9-712 as well as the upgrade, replacement and maintenance plans for this equipment and facilities. Exhibit C: List of city and school district buildings Company has agreed to -- i n t e r-eofrnec t. Exhibit D: Preliminary outline of minimum public relations plan for System Rebuild, system upgrade, and any other construction. r f 1 SECTION 9 — 732 INTERPRETATION BY CITY OF FRANCHISE In case of any dispute or question as to the meaning, inter- pretation or application of any term, provision or condition of this Franchise Ordinance, the City in its sole discretion shall resolve such dispute or question. -148- SECTION 9 - 733 VALIDITY OF FRANCHISE Company has been represented throughout the negotiations of the franchise renewal by its own attorneys and has had opportun- ity to consult with its ovr...R,'- -prneys about its rights and obli- gations regarding the franchise. In consideration of the renewal of the franchise to Company, Company hereby waives any claim which it may have with respect to the issuance of and/or the terms and conditions of the Franchise Ordinance. In consid- eration of the renewal of the franchise to Company, Company also releases the City and any of its elected officials, employees, representatives, agents, servants, including attorneys from any claims it may have,---known-=or-=unkcnown-;-inci-uding, --wi=thout -ii-mit-a- tion, claims arising under Minnesota Statute S 238 et. seq., the Cable Communications Policy Act of 1984, the ordinances and char- ter of the City of St. Louis Park and/or the requirements of federal, state or municipal law including the Constitutions of the United States and of Minnesota. However, the foregoing release shall not apply to any claims which the Company may have with respect to the terms and conditions of the Franchise Ordi- nance where substantially the same terms and conditions of other r f 1 1 cable television franchises have been held invalid by a binding and final judgment of the United States or Minnesota Supreme Courts. 3. Describe the proposed distribution system, cable and equipment. Give the manufacturer, type and model number for the following. If any equipment proposed for use is not presently available for purchase, please so indicate: - A. Cable 1) Aerial: 2) Buried: 3) Drop: Coram/Scope QR-860JCA QR-500JCA Comm/Scope QR-860JCASP QR-500JCASP Comm/Scope F6SSV B. Active Electronics 1) Trunk Amplifiers: Scientific Atlanta, 6540 AB, 6540 MB 2) Bridging Stations: Scientific-Atlanta, Bridger amps 3) Line Extenders: Scientific Atlanta, 6554 4) Power Supplies: Lectro, V-00-1-6-00 5) Stand-by Power: Lectro, S/8 SV -30-60-14A 6) Converters: Scientific Atlanta, 8580 C. Passive Electronics 1) Splitter: Scientific Atlanta SAS2F --2) Powe -r- i -near -s —Sri en t -i -i c -At 1-aIt--a- S I F 3) Subscriber Taps: Scientific Atlanta SAT2F, SATIP, SATIN 4) Connectors: Gilbert, 6R8 -860 -CE -QR, 6R8 -500 -CE -QR Nortel reserves the right to substitute equipment manufactured by other suppliers which meet the technical specification of the equipment proposed. 4. Describe the headend, including the location. Give manufacturer, type, and model number for the following. If any equipment proposed for use is not presently available for purchase, please so indicates • .V` ti - SECTION 9-731 -6- - Exhibit A r r 1 1 1 1 . 1 Annul The headend location will remain at 516 teitiine eoulevas A. Satellite Earth Station: Two Scientific Atlanta five meter cassigrain, one Scientific Atlanta model 09000, vOg 3.2 metes prime focus. S. VEP Antennas: Scientific Atlanta Q0, QC7 C. OOP Aateanast Scientific Atlanta•QcI-ISR D. Modulators: Phasecom 2105, Scientific Atlanta 6350 E. Receivers: Scientific Atlanta, 6602 • F. Processors: Phasecom 2300, Scientific Atlanta 6150 G. Scrambler: Scientific Atlanta, 8556-003 R. Stand-by Power: ONAN I. Combiner: Scientific Atlanta 68-12TS 'Note: All replacement and additions we propose to use are Scientific Atlanta. Nortel reserves the right to substitute equipment manufactured by other suppliers which meet the technical specifications of the equipment proposed. NORTEL CABLE TV-FRIDLEY CABLE TV TEL No. 612 571 9687 Nov 30.88 15:36 P.02 ST. LOUIS PARK ACCESS/L.O. INVENTORY EQUIPMENT IS CATEGORIZED INTO FOUR CATEGORIES "A": Studio production equipment available to trained access members, access staff, gt.Louis rkranchise NPaPark This eq is delegated to th "C": Cab lecasting/control room equipment available to trained access members, access staff, Nortel employees. This equipment is delegated to the St. Louis Park Franchise. "V": Van production equipment available toraccesLs mmbbers0.f, who have been certified for use by is access staff, Nortel employees. This equipment first prprioritty is r-isoy- y is three Nortel Franchises, but to facilitate productions i -n -the, s B St. Louis Park Franchise. "N": Nortel equipment for use by access staff, or Norte]. employees. It can be used for t mporaryrorepl Feanctises, nt of equipment under repair and by by Nortel employees. INVENTORY OCTOBER 25, 1988 Jeff Oehler Production Coordinator Nortel SECTION 9-731 EXHIBIT B 1 8 E' TV-FRIDLEY TEL No. Iuantity Item 2 Sony Color Camera OXC-1800 2 Sony studio viewfinders OXF-40 2 Sony 10:1 lenses (Cannon) 612 571 9687 Nov 30.88 15:36 P.03 ST. LOUIS PARK ACCESS/L.O. STUDIO EQUIPMENT 2 Sony Rear Control for lens LO -25 2 Sony 14 PIN camera cables 25m 2 Sony camera power supplies CMA -7 2 Sony Camera control units CCU -1800 2 Quickest Husky tripod/head/dolly 4-73010-7 3 Sony intercom headsets DR10 3 1 5 Sony Tie-tac microphones ECM -50 Sony Tie-tac microphone Smith -Victor Broad Lights ECM -44 750 1 2 Sony Unimedia color receiver Winstead racks on /monitor caster frames 2 Easels for camera cards 2 Sony color monitor 8" 3 Panasonic _B&W 5" Monitore 1 Panasonic production switche 1 Panasonic audio mixer 1 Teao audio cassette deck 2 Atlas MIC stands 2 Electrovoice handheld mica MB 8200 5208 r 5500 450 CX -311 635A 528 items 1 1 Electrovoioe lavalier mic 1 Conran 8" 8 i W Monitor 1 Tektronics waveform monitor Rack mount unit for above two sn 12991 12026 011137 011358 11784 11782 10336 10339 556702 011441 011447 56203636 —562016T31 56203638 3340033 8228327 C A A • CpBLE TV-FRIDLEY T. LOUIS Watt ACCg$3/L•0• STUDIO EQUIPMENT (continued) S TEL No. 612 571 9687 Nov 30.88 1j37 P.04 C_ Ea 4 2000 '1AZ3�1 Item N puantit keyborad R ODE g remota terminal te ruction console i Emcore law si Moue Radio Shacks speaker» 1 ower cordsitems for above video/audio/power lex Jr X r TV-FRIDLEY TEL No. 612 571 9687 Nov 30.88 15:37 P.05 4111 ST. LOUIS PARK ACCESS/L.O. CABLECASTING EQUIPMENT 22tatiSY Item nem 3 Setohel-Carlson B&W 5" Monitors 1 Audio/video patch bay 2x26 16 Video/audio cords for above 3 Shure audio mixers w/rack mount M-67 1 Shure audio mixer w/rack mount M-67 1 Bosch ewitcherrnseh w/keypadlcontrol/audio routing board Sony 3/4"VCR VO -2800 Sony 3/4" VCP VP -5000 2 2 1 1 1 11. 2 1 Sanyo'19" color receiver 91058 Emcor 72" rack Wall clock Gralab darkroom timer 12 Outlet power strip 6 Outlet power strips Sony 3/4" VCP V0-2011 X Audio/video/power cords for above 1 Panasonic VRS --VCP AC -1100 pia 605619 CP1002 10214 15299 13846 16385 V80731135 13981 N -_ZU61d00 Ob2 " R042987 NORTEL CABLE TV-FRIDLEY TEL No. At 04* 4 ST. LOUIS PARR ACCESS/L.O. Quantity Item 3 Anvil cases 2 2 2 2 2 2 4 1 12 3 Sony Sony Sony Sony Sony 612 571 9687 Nov 30.88 15:30 P.06 PRODUCTION cameras camera CCU camera power supplies view finders eng. view finders (1820) VAN INVENTORY Custom DXC-1820 CCU -1820 CMA -8 DXF-40 Sony camera cases, tripod plates Sony 14 pin camera cables 50m_ Panasonic VHS VCR Crosspoint Latch Seg Panasonic color monitors Panasonic 8&W monitors 5" 1 Radio Shack audio intg. AMP 1 Radio Shack 5" speaker 1 Lowel Tota light 1 Stand for above 2 Winstead racks on casters 1 Shure audio mixer 2 ITE tripod/head 2 ITE tripod dollies 2 Electro voice mica 4 Electro voice mics 6200 6119 BTS702N 52038 SA -10 --M2-t7 T-40 D-40 RE -15 635A 2 Shure desk top mic stands S39A 2 Atlas boom mic stands 2 Atlas mic stands 6 Electrovice windscreens OR10A 7 Sony intercom headsets 1 Old Smith -Victor box for audio gear • 4 6 outlet AC power strips s n 106137 118991 105858 12197 12222 10 322 10743 12555 12556 014353 014354 12562 12544 CODE V w w w w M TXP85000N "- 0781 KA5341083 " KA5341084 " 18202384 " 18202385 " 10202386 " w w w w w w w w w w w w w w « w « w w f 1 1 -FRIDLEY TEL No. 612 571 9687 Nov 30.88 15:38 P.07 ST. LOUIS PARK ACCESS/L.O. PRODUCTION VAN INVENTORY (continued) Quantity Iter !n s n CODE 1 VAC intercom control unit - V 5 VAC intercoms stations v/belt clips . . w 3 150 ft. grounded AC cords " 2 50 ft. grounded AC cords " 3 50 ft. XLR audio cables (black) 3 300 ft. XLR audio cables (grey) " 6 50-175 ft. XLR audio cables (grey) " 1 KNOX character generator - - K50 __ ___— _ ° _ 1 Videotek waveform mon i•::or TSM -SA 010854815 " 1 Rack unit for above x Video/audio/p w er cords for above NORTEL CABLE TV-FRIDLEY TEL No. 612 571 9687 Nov 30.88 15:39 P.08 ST. LOUIS PARK L.O. EQUIPMENT INVENTORY. EDIT ROOM i SPARES r Qvantit 1 2 1 2 1 1 1 2 1 1. 1 2 2 1 1 1 1 2 11 3 1 1 21 14 14 1 1 2 2 1 X Item CODE Encore 72" rack Microtine TBC Sony Trinitron color monitors Radio Shack integrated AMP Radio Shack 5" speakers Panasonic Sony 3/4" Sony 3/4" Sony edit Multi -pin production switcher VCR VCR controller cables for above T120 PVM8200 SA -10 4600 5850 5800 RMM-440 TXP8500N 503478 503594 920731 20540 17328 12 outlet power strip Sony 3/4" VCR Sony 3/4" VCR Sony 3/4" VCR Porta brace cases for above Sony batteries Sony power supply/battery chrgr Panasonic 3/4" VCR Sony color monitor/teceiver 12" Sony color _monitor/receiver 17" Panasonic monitor/receiver 13" JVC 5" color monitors Sony Power supply Sony 14 Pin camera cable 25m Sony eng viewfinders Sony camera lens 6x1 (Cannon) VDS keyboard Quickset Husky tripod Smith -Victor lights (spot) Smith Viotor lights small SMith Victor light portable Smith Victor Stands FOR Packing case FOR (black) Century light clamps (pipe) Comprehensive shotgun microphone Tektronix waveform monitor 528 Telco intercom headset Telex intercom headset Vac intercom control Vac intercom station Quickest Husky tripod Tascam audio cassette VO -2860 VO -2800 70-4800 15028 16007 134767 117166 BP -60 AC -340B NV -9400 1250 1750 1310 TM22U CMA -7 DXF-3 KB2001 -5-95534. 9 720 700 BL -100 720,750,700 720/750 dolly deck 225 Audio/video/power cords for above 15301194 505835 011987 M1929-3"30 17806039 11136 18294 12614 13760 7932 8227565 170036 1 CABLE TV-FRIDLEY TEL No. 612 571 9687 Nov 30.88 15:40 P.09 CABLE TV September 29, 1988 Ms. Sharon JClumpp City of St. Louis Park SODS Minnetonka Blvd. St. Louis Park, MN 55416 Dear Sharon: At our recent meeting on Tuesday, September 20th, you requested some clarification of my letter of September 16th. Attached is a new revised replacement schedule which Y believe will answer most questions on equipment replacement including cameras, waveform monitors and the time base corrector. Some other items were discussed on which I have received some further information: 1. VCR 'roll in" capability - 1 understand this issue has bean sat[efactorIly addressed and you will be provided with the capability -as -requested. 2. Waveform monitors: They have been calibrated but 1 have aske Jeff to check them once more and if he feels it is necessary to go ahead and resubmit theta for calibration. Also the lights on the particular monitor in question have been fixed. 3. Time base corrector: - Jeff Dehler mentioned that John and Req a express heir concerns to him which were: A. That freeze frame capability was not available and; B. availability of unit for their productions was not as often as they would like. The freeze frame capability is not presently available on the unit we have. However, it could be when the time base corrector would be scheduled for replacement. I believe there is a significant issue of amount of use, which should not mandate immediate replacement. I have instructed Jeff to make the time base corrector available to the access group at their request. 4. Character generator: - Sino problem. Jeff has one keyboard in for repair at present but is unaware of a syncroblem which was related by John. He will talk to John directly to clarify. NORTEL CABLE TV-FRIDLEY TEL No. Sharon Klumpp, cont'd. page two 612 571 9687 Nov 30.88 15240 P.10 5. Maintenancerogram: Jeff will be submitting to me a copy t'. request for repair fors as soon as he receives it and has been instructed to initiate inspection within one week of the request. Jeff prioritises his inspection schedule based on the use of an item and available substitutes for it. He also prioritizes repair in the same way, that is if 'next on bench service• is necessary to provide for production consistency and the maintenance of production schedules, he will make that a mandatory condition. However, if an item is temporarily replaceable or can be eliminated, the repair is based on normal repair scheduling and the time frame of the repair facility. 6.. Set furniture and Curtains: Set furniture is being evaluated wrth an eye �o replacing if necessary. I have asked Jeff - to work with a local vendor to try for a 'trade' in exchange for advertising. The studio curtains appear to be in satisfactory shape and will be dry cleaned. As we mentioned, the access couch and other items which were left in the studio will be destroyed shortly to clear out the debris taking up studio space. 1 believe that covers it but let me know. Regar y ;14 k ammeratrom er 1 Manager MH:na cc: Gerry Karma Keith Cripps Ron Abrams Jeff Dehler NORTEL CABLE TV-FRIDLEY TEL No. 612 571 9687 Nov 30.88 15:41 P.11 CABLE TV September 29, 1988 NORTEL CABLE TV PRODUCTION EQUIPMENT IMMEDTAM REPLACEMENT (within 6 months) Quantity Item Model Serial Number Number 3 Panasonic Studio Camerae 2 Smith Victor Lights 700 2 Smith Victor Light Stands 8 Sony Batteries OP -60 1 Smith -Victor Carry Case 1 Sanyo 19" color receiver 91058 V80731135 IMMEDIATE REPAIR (within 3 months) 1 Waveform monitor (calibration) 1 ITE Tripod Read 0.40 1 ITE Dolly 0-40 1 Comprehensive Shotgun Microphone 1 Sony Camera Lens 10x1 SECOND PRIORITY REPLACEMENT (within l year) 1 Time -Base -Corrector 1 Commodore Computer C-64 1 Sony Camera DXC-1800 13381 2 Bilora Tripod/Read/Dolly 314 (Bilora Tripods to be temporarily replaced by Fridley ,franchise - Quickest Tripods) • NORTEL CABLE TV-FRIDLEY TEL No. 612 571 9687 Nov 30.88 15:41 P.12 SECOND PRIORITY REPAIR (within 1 year) Model Serial Quantity Item Ntmber• s• I�wnb�! 1 Sony 3/4" VCR V-2800 ' 1 Sony Color Monitor 17" 1750 1 Sony 3/8" VCR VQ -2800 1 Sony 3/4' VCR V0-2011 NO NECESSARY REPLACEMENT 2 Telex Intercom Headset 1 Telco Intercom Headset • 1 Quickset Husky Tripod 1 1 1 OTHER Sony Camera VDS Remote Terminal Keyboard Sony 8' Color Monitor 5.95534-9 DXC-1820 (Replaced) RDT-2000 (Currently repaired) MB -8200 (Currently bet g repaired) 1 1 1 4 City of St. Louis Park: City Hail 5006 Minnetonka Blvd. St. Louis Park, MN 55416 St. louts Park Recreation Center 5006 V. 36th St. St. Louis Park, MN 55416 Municipal Service Center 7305 Oxford St. St. Louis Park, MM 55426 Fire Station 01 3750 Wooddale Ave. St. Louis Park, MN 55416 Fire Station 02 2262 Louisiana Ave. St. Louis Park, MN 55426 Nelson Community Center 2500 Georgia Ave. St. Louis Park, MN 55416 • Attachment A Westwood Hills Environmental Education Center 8300 W. Franklin St. Louis Park, MN 55426 Lenox Community Center 6715 Minnetonka Blvd. St. Louis Park, MN 55416 Eliot Community Center 6800 Cedar Lake Rd. St. Louis Park, MN 55426 Brookside Community Center 41st and Vernon Ave. St. Louts Park, MN 55416 Central Community Center 6300 Walker St. St. Louis Park, MN 55426 ( t St. Louis Park Schools District 283 Aquila Primary Center 8500 W. 31st St. St. Louis Park, MN 55426 Peter 'Mart Primary Center 6500 W. 26th St. St. Louis Park, MN 55426 Susan Lindgren Intermediate Center 4801 W. 41st St. St. Louis Park, MN 55416 St. Louis Park Junior High 2025 Texas Ave. St. Louis_Park, MN 55426 Park Senior High 6425 W. 33rd St. St. Louis Park, MN 55426 District Maintenance Shop 6400 Walker St. St. Louis Park, MN 55426 SECTION 9-731 Exhibit C t Exhibit- 1B I •� PUBLIC RELATIONS PLS ' .T ' ST. LOUIS PARR REBUILD The following represents a preliminary outline of the public relations plan to be foliated during the rebuilding of the St. Louis Park Cable System. 1. NEIGHBORHOOD NOTIFICATION A. General Notifications --Nortel will utilize three primary methods of construction notification - billatuffers to existing customers, newspaper advertising and door hangers. B. Aerial Construction: r --Primarily, we will utilize newspaper advertising and bill- stuffer notification for the areas to be reconstructed aerially. We have found that the aerial construction proceeds very quickly and therefore, it is necessary to use a broadbased medium such as newspapers. - -Newspaper ads to run as necessary, focusing on current general location of aerial crews (See sample ad attached). - -Billstuffers will be included to describe aspects of construction citizens should be aware of (Sample attached). C. Underground Construction: Residents will be notified by door hangers, billatuffers and newspaper (as necessary) . As- underground __construct -ion --tends to be slower than aerial construction and disturbs more visible areas, door hangers are necessary in addition to the broad- based media listed for aerial construction. - -Door hangers will be left on all residents' doors in the affected construction areas no earlier than 72 hours and no later than 24 hours before construction begins. All door hangers will describe the work to be done, list our phone number and a specific company contact person to call__for problems --See sample attached). As St. Louis Park's under- ground system is very small, this system of primary notification should be sufficient but will be supplemented by general notification via general newspaper ads and billstuffers. 2. COMPLAINT PROCEDURE A. All notification materials will have our phone number printed prominently on them. B. A specific employee will be designated to handle construction related questions and problems. SECTION 9-731 Exhibit D 1 - -2- C. Once a complaint is received, it is entered on a complaint log specifically for the resolution of construction complaints (See attached) and telephoned to the aerial or underground construction supervisor for correction. D. At a minimum, the employee designated to handle construction complaintswill update listed items that have been completed on the complaint log once per week and re General Manager. Any discrepancies and items results mpitted will also be discussed at this time. 3. SAFETY PROCEDURES A. All contractors and subcontractors that are hired by Nortel for cable construction will be licensed, bonded and insured to properly for the protection of the citizens of St. Louis Park as well as Nortel employees affected by construction. B. All OSHA safety standards will be enforced and audited by a Nortel management official. C. All construction equipment will be clearly marked and construction zones clearly designated in accordance with all laws and appropriate safety regulations. D. All holes, trenches and other safety hazards in underground areas will be filled in or otherwise secured to properly protect residents and to avoid inadvertant injury during non -construction hours. SCBSCRIBER NOTIFICATION OF THE OPERATION OF THE NEW CABLE SYSTEM From time to time as necessary, Nortel will mail to customers_updat88 relating to the progress on cable construction, availability of new channels, channel line up changes, etc. in accordance with franchise regulations. As the time frame of particular changes to the system are unknown, specific dates for customer notification cannot adequately be forecast at this time. A sample of our notifcation mailer for the first Bloomington channel line-up change is attached as reference to a typical type of mailer we will provide to communicate these changes to our customers. Nortel is willing to entertain any additional ideas or suggestions_the City may have to insure the rebuild_proceeds smoothly and with minimum disruption. Section 2. This ordinance shall take effect 15.days after its publication. Approved by the City Council on February 6, 1989, for adoption on February 7, 1989. Reviewed for Administration: Mayo Approved as to form and execution: City Manager City Attorney r r 1 Minnesota Suburban Newspapers AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA) COUNTY OF HENNEPIN) L.J. Canning, being duly sworn i� lt t)St,LA��gal the publisher or authorized agent and employee of the publisher of St. Louis Park Sailor stated below. summars AlacE Na'r''$9G F OFA tL14.8"/ 01' si.EN11N sTd the or eon - aro repv� �rslea w Thiscon' j end �°n orastandardsand �� er ,otecn nice• a s� (A) The newspaper has complied with all of the requirements constituting qualificatioi ��em� � trap stiff te° r The term 'an an sapstacwTY R�°rthe re as provided by Minnesota Statute 331A 02, 331A.07, and other applicable laws, as an cableO nde cor 6bw " maw tem and ine>, l : swill 1 cable two years.rrite cable systern by I c plete and gr 1, 711rhainl take eft 1.,..,,ttear .-- to date bce lids vebn�r,j 6'' 989 valei _ Or E� hon ,, 1,<c `to is a u , and has full know, (B) The punted Ordinance No. 1774-89 ardtnanCe, of the ea els y5 daysby the City' b '{ which is attached was cut from the columns of said newspaper, and was printed and publisy tdl tettCI Clerk'so�ce) a tib ler cow et the ml°,� for one successive weeks, it was first published on Mond a Y , the \ day of Fe b ru a rr, 19 89, and was thereafter printed and published on every to and including , the day of , 19 , and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice a bcdefghijklmnopgrstu Acknowledged before me on this 16 day ofIb r , 19 89 nv Public Fi1E1DEL M HEDBLOM NOTARY PUdIIC - MINNESOT6 HENNEPIN COUNTY My commission expires 7-2-92 TITL RATE INFORMATION (1) Lowest classified rate paid by commercial users for comparable space (2) Maximum rate allowed by law for the above matter (3) Rate actually charged for the above matter 6lisbpr 1 10 per line 598 per line 537$ per line