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HomeMy WebLinkAbout1985-1120-A3 Amending Ord. No. 1980-1120 By Changing the Name of the Grantee and Other Changes ORDINANCE NO. 1120-A3 AN ORDINANCE AMENDING ORDINANCE NO. 1120 TO CHANGE THE NAME OF GRANTEE; TO EXTEND THE FRANCHISE TERM; TO CHANGE THE INSURANCE REQUIREMENTS ; AND TO CHANGE THE COMPUTATION OF THE PURCHASE PRICE TO BE PAID BY CITY UPON EXPIRATION OF THE FRANCHISE. THE CITY OF EDINA, MINNESOTA DOES ORDAIN: SECTION 1. That Article I, Section 2, Paragraphs J and S of said Ordinance be amended to read as follows: J. "Grantee" is Rogers Cablesystems of Minnesota Limited Partnership, a Minnesota limited partnership, with Rogers Cablesystems of Minnesota, Inc. , a Minnesota corporation, as the General Partner , S. "SWSCC" shall mean the Southwest Suburban Cable Commission. SECTION 2. That Article II , Section 4 of said Ordinance be amended to read as follows: This Franchise shall commence upon acceptance by Grantee and shall expire on December 31, 1995. Provided, however, that if by December 31, 1987, Grantee ( i) is able to close on, and have funded, without conditions, new long term financing, reasonably satisfactory to City, to replace the obligation evidenced by loan documents dated April 1, 1982, from Grantee to Toronto Dominion Bank of Toronto, Canada, in the original principal amount of Eighteen Million and No/100 Dollars ($18, 000, 000. 00 ) (the "Existing Indebtedness" ) , and ( ii ) gives written notice of such new financing to City with written evidence thereof reasonably acceptable to City, then, upon the occurrence of ( i) and ( ii ) by December 31, 1987, the term of this Franchise shall be extended by four (4 ) years, from December 31, 1995 to December 31, 1999, subject, however, to approval of such extension by the Board, if required, and the FCC, if required , and any other governmental body having jurisdiction over the matter, if required. If any such approvals are required, City and Grantee agree to cooperate in obtaining such approvals. If any such approvals are required, and are not obtained, for any reason, then the four (4 ) year extension shall not become effective. If such extension becomes effective, Grantee and City shall sign and deliver an agreement evidencing such extension, but such extension shall be effective even without such additional agreement. SECTION 3.'A That Article V, Section 2 of said Ordinance be amended by adding thereto a new Paragraph F as follows: 212-1B-A3 F. City may waive, at any time and from time to time, for good cause shown, by Council resolution, compliance by Grantee with any or all of the requirements imposed on Grantee by this Section 2 relative to providing service to any extended area or areas. SECTION 4. That Article VIII , Section 2, Paragraph A, subparagraph (4 ) of said Ordinance be amended to read as follows: (4 ) Any and all claims which Grantee may now or hereafter have or claim to have against City, its officers, boards, commissions, servants, agents, employees or officials, due to or arising out of, damage to any of Grantee 's property or equipment, including, without limitation, resulting or consequential loss of income, injury to reputation, or any other resulting or consequential damages of any kind, caused by or resulting from acts or omissions of City or any of its officers, boards, commissions, servants, agents, employees or officials. SECTION 5. That Article VIII , Section 3, Paragraph A of said Ordinance be amended to read as follows: A. Grantee shall maintain liability insurance covering its obligations of indemnification provided for in, or as a result of the exercise of, this Franchise (except, however , for the indemnifications in subparagraph (3 ) of Article VIII , Section 2, Paragraph A of this Franchise) covering both the City and Grantee and shall maintain said insurance during the term of this Franchise in the minimum of: 1. $500, 000. 00 for property damage to any one person; 2. $2, 000, 000. 00 for property damage in any one act or occurrence; 3. $1, 000, 000. 00 for personal injury to any one person; and 4. $2, 000, 000. 00 for personal injury in any one act or occurrence. The foregoing insurance may be provided by means of a blanket liability insurance policy or policies with an annual aggregate limitation of not less than $26, 000, 000. 00. SECTION 6. That Article VIII , Section 3, Paragraph E of said Ordinance be amended to read as follows : -2- E. All insurance policies maintained pursuant to this Franchise shall contain the following endorsements and provisions: (1 ) It is hereby understood and agreed that this insurance policy may not be cancelled nor the intention not to renew be stated until 60 days after receipt to City, by registered mail , of written notice of such intention to cancel or not to renew. ( ii ) A waiver of subrogation, in form and substance acceptable to City, as to any and all claims against the City which are waived hereunder by Grantee or as to which Grantee has agreed hereunder to indemnify and hold harmless the City and its officers, boards, commissioners, servants, officials, agents and employees. ( iii ) A provision that if the aggregate insurance coverage of the blanket policies provided by Grantee is ever reduced below $10, 000, 000. 00, then notice of such fact shall promptly be given to City by Grantee or Grantee' s insurance agent and additional liability coverage shall immediately be purchased by Grantee so as to restore the annual aggregate to the minimum amount then required under this Franchise. SECTION 7. That Article XI, Section 2, Paragraph C of said Ordinance be amended to read as follows: C. The purchase price of the System to be paid by City upon revocation or termination of the Franchise shall be the cost less depreciation (as shown on the books and records of Grantee) or the fair market value, whichever is less, and goodwill shall not be included in the purchase price of the System. However, if this Franchise expires (and is not revoked or terminated) and if Grantee has complied with the requirements of Article II , Section 4 of this Franchise, and all required approvals are obtained, so that the Franchise term is extended for an additional four (4 ) years pursuant to said Section 4, then the purchase price of the System to be paid by City upon expiration of this Franchise shall be the fair market value of the System determined on the basis of the System valued as a going concern but with no value given or allocated to this Franchise itself. If the City and Grantee cannot agree on the purchase price, it shall be determined by arbitration pursuant to the provisions of this Section 2. SECTION 8. This Ordinance will be effective in accordance with the provisions of Article XIV of said Ordinance, including delivery -3- to City of the acceptance, opinion of legal counsel, guarantees and other documents as required by said Article XIV, and provided further, however, that it shall become effective only if all of the cities of Eden Prairie, Minnetonka, Hopkins and Richfield adopt an ordinance similar to this Ordinance within ninety (90) days after the adoption of this Ordinance. SECTION 9 . Subject to the provisions of Section 8 hereof , this Ordinance shall be in full force and effect upon adoption and publication, but shall relate back to the effective date established by Section 8 hereof if earlier than publication. Passed and adopted this 20th day of May, 1985 . First Reading : April 15 , 1985 Second Reading: May 20 , 1985 Published March 19 , 1986 City of Edina, Minnesota ATTEST: By Ma o By City Clerk Manager -4- CITY ORDiNANC Dil�iAff00<iEAMENDfIY ORDINA CE 1f2s�QC GXTHE G1B'AfeTEEt XND ANCUI TO = $ 1lt O AND E TH14 dl 1IRC$ASE P _. i8E PAHO' VPQX_ OF 1SE MtpillElA;DO AIN # l;r cleollppiww;Segtiptt .Para s d and Sof i4Q Ordinance- "is Ras ogers 6 esystems of Min to Limit Partnership,=a. imitedpatuerahip,with Ro�rsCabaYstettts oMinAesota,Iwo., a co ratio as the Getters Parth� S." N!i4CC" it mean the Southwest Subu�Ran Cable Commission. SEC CION L at Article Sectile 4 of said dinance be amended to read asfolt�vs: II This Franchise shed commence upon acoaptance by Grantee and sfill estpire on December 31;1995. Provided, however,'that if by t December 31,1987,Grantee(1)is able to close on,and have funded, without.conditions,new long term financing,reasonably satisfactory to City,to replace the obligation evidenced by loan documents dated April 1,188$from Grantee to Toronto Dominion Bank of Toronto, II Canada,in the original principal amount'af Eighteen Million and' No/100 Dollars (818,000,009:00) (the',"Existing Indebtedness"),and 011 gives written notice of such new financing to City with written evidence thereof reasonabfy acceptable to'City, then, upon the occurrence of (I) and (ii) by,December 31, 1987, the term of this Fi?auehise shag be extended by four(4)years,from December 31, II 1998 to December 91; 1999, subject, however,to approval of such extension by the Board,if required,and the FCC,if required,and any other„governmental body having jurisdiction over the matter, if required.If any such approvals are,required,City and Grantee agree to rate in obtaining such approvals.If any such approvals are rWh ,and are not obtained,for any reasop,then four(4)Year extension"shalt not become"effective. If such:extension becomes eftetive, Grantee and City shall sign and deliver an agreement evidencing such extension but such extension shall be effective even without such additionat agreement. SECTION 3.That Article V,Section 2 of said Ordinance be amended by add thereto a new Paragraph F as follows: F.City may waive,at any time and from'time to time,for good cause shown;by Council resolution,compliance by Grantee with any or all of the requirements Imposed on Grantee by this Section 2 relative to providing service to any extended area or,areas. SECTION 4.That Article VIII,Section 2,Paragraph A,subparagraph(4)of said Ordinance be amended to read as follows: II (4)Any and all claims which Grantee may now or hereafter have or claim to have against City, its officers boards, commissions, .servants, agents,employees or officials, due to or arising out of, damage to any of Grantee's property or equipment, including, without limitation,resulting or consequential loss of income,injury to reputation,or any other resulting or consequential damages of any II kind,caused by or resulting from acts or omissions of City or any of —its officers, boards, commissions, servants, agents, employees or officials. SECTIONS.That Article VIII,Section 3,Paragraph A of said Ordinance be amended to read as follows: A.Grantee shall maintain liability insurance covering its obligations of II " cat' n provided for in, or as a result of the exerpi4e of, this Fti .( ep1.however,for the indemnifications in subparagraph(s)of 'Article VIIL Section 2.Paragraph A of this Franchise)covering both the City and Grantee and shall maintain said insurance during the term of this Franchise in the minimum of: U-4110400.001or property damage to any one person: II 2.1112,090.0N.00 for property damage in any one act or occurrence: 3.81,000,000.00 for personal injury to any one person:and 4.$2,000,000.00 for personal injury in any one act or occurrence. The.foregoinginsurance may be provided by means of a blanket liability i"uraacepolicy or policies with an annual aggregate limitation of not less th�ln If SECTION s.That Article Vill,Section 3,Paragraph E of said-Ordinance be amended to read as follows: E. Ali insurance policies maintained pursuant to this Franchise shall contain the following endorsements and provisions - (!) It,fs:herel�y°undgstuod and agqreed the-this.insurance policy may'not be cancelied icor.the intehtidn not to r ew be,stated until 60 daytafter receipt to City,by rell�ilsiered mail,of'written notice of such intention.to cancel or not to renew. (40 A waiver of.subrogatien,in form and substance acceptable to City.as to any and all claims ailainst'the City'Which are waived 'hereunder by Grantee or as to which:Grantee hag agreed hereunder to'iadeAmlfy and hold harmless the City and its officers,boards. Il coUpissjoners..servants officials,.agen4a and employees. OW.A provis'on.. at i?the ag egate insurance coverage of the blanket policies provided b ramtee is.ever reduced below $10.000.040.00.th once of s t pity be given to City by Grantee or. ce and additional liability coverage shah imine t' e y be ha q Grantee so as to restore ' the'aanual,aggregate to the tti m amount then required under ul tflls Franchise, SEN 7..That Article XI.Section 2,Paragraph C of said Ordinance be am o read as follows: . i 2;The purchasevprice of the System to be paid by City upon revocatioaor termination of the Franchise shall be the cost less depreciation(as shown on the books and records of Grantee)or the fair market value,whichever is less. and,goodwill shall not be included in the purchase price of the System. However,if this Franghise expires(and is not revoked-or terminated)and if Grantee has complied with the requirements of Article II.Section 4 of this Franchise:and all-required approvals are obtained,a4that the Franchise term is extended for in additional four(4)years rauant to said Sections, then the purchase price of the System to:be pa' Y�itY ezpiratlaa of II this Franchise shat)be the fair market value of t stettf eterm ed on the basis of the System valued as a going concern but with no value given or allocated to this Franchise itself.If the City and Grantee cannot agree on the purchase,it shall be determined by arbitration.pursuant to�the provisions of this SeMiggn 2. $E.CTI N S. This Ordinance will be effect Ye im.accordapce with the provisions of Article XIV of said Ordinance mending delivery to City of the acceptance.,opinion of legal counsel. guarantees and other documents as required'by said Article IV,and provided further,however,'that it shall become effective only if all of the citieg of Eden Prairie,Minnetonka.Hopkins and Richfield adopt an ordinance similar to this Ordinance within ninety(90) II days after the adoption of this Ordinance. SECTION 9.Subject to the provisions of Section 8 hereof,this Ordinance shall be in full foree-Pnd effect4 tsption and pablicatle�s.tfut'shall relate back to he effective date establIsii$hed by Section 8 hereof if earlier than #! and adopted this 20th day of May.1995. ,FNswt ending:April 15.1985 It fleseld Reading:May 20.1985 City of Edina.Minnesota By BY Mayor ATTEST: Manager City Clerk (March 19.1098)-ED 2A 1C