HomeMy WebLinkAbout1991-1122 Repealing the CATV Relief Ordinance (Ord. No. 1985-1121), Providing for the Continuance of Certain Aspects of the CATV Ordinance, and Other Changes ORDINANCE NO. 1122
An Ordinance Repealing the CATV Relief Ordinance,
Ordinance No. 1121, and CATV Relief Ordinance
Amendment, Ordinance No. 1121-A1, Providing for
the Continuance of Certain Aspects of the CATV
Relief Ordinance, As Amended, and Restructuring
the Manner in which Local Programming is Funded.
The City Council of the City of Edina ordains as follows:
Section 1. Short Title.
This Ordinance shall be known as the "Local Programming
Restructuring Ordinance. "
Section 2. Background and Purpose.
In 1984 , Grantee requested that the Southwest Suburban Cable
Commission ( "SWSCC" ) and Member Cities substantially restructure
certain aspects of the Franchise in response to the serious
financial difficulties experienced by the Grantee. The Member
Cities enacted the CATV Relief Ordinance and the SWSCC and the
Member Cities entered into the Performance Agreement in response
to Grantee' s request . The result was to reduce Grantee' s Local
Programming Obligations and Franchise Fee requirement, provide
Grantee with an incentive to refinance its debt obligation and
increase the involvement of the SWSCC and Member Cities in funding
Local Programming Obligations and monitoring Grantee' s
performance. The CATV Relief Ordinance Amendment was enacted in
1988 as a part of the transfer of control of Grantee and resulted
in the continuance of the CATV Relief Ordinance with some
modification.
In 1990, Grantee petitioned SWSCC to extend the provisions of the
CATV Relief Ordinance and CATV Relief Ordinance Amendment
(collectively "Relief Ordinances" ) through the term of the
franchise. The SWSCC and Grantee reviewed the request through a
series of meetings of the SWSCC operating committee and
commission. The SWSCC, Member Cities and Grantee concur that the
implementation of the Relief Ordinances has contributed to the
achievement of the original goal of the SWSCC and its Member
Cities: stabilizing and improving the financial condition of the
Grantee. As a result, certain SWSCC oversight responsibilities
and reporting requirements imposed by the Relief Ordinances and
Performance Agreement are no longer necessary.
The SWSCC and Grantee also concur that certain changes in the
usage of channels on the cable system and the provision of access
programming, community access programming and local origination
programming (collectively "Local Programming" ) resulted in a
channel line-up including more satellite programming services than
originally proposed by Grantee, as well as focusing Local
Programming channels so as to better serve the Member Cities. The
resulting programming line-up provides diversity and appeal to
CATV subscribers while maintaining a strong Local Programming
component. It was agreed that the mix and level of satellite
services and Local Programming should be continued.
Finally, it was determined that since Grantee had improved and
stabilized its financial condition, it should assume full
responsibility for funding Local Programming as was contemplated
at the time of the Franchise award. Since the SWSCC will no
longer be a direct participant in the funding of Local
Programming, it was determined that the role of the SWSCC in the
oversight of Local Programming should be restructured.
The SWSCC has adopted a resolution approving the modification and
extension of certain provisions of the Relief Ordinances and
related documents ("SWSCC Resolution") . Each of the Member Cities
must also adopt a similar Resolution. This Ordinance will be
effective only if the terms of the SWSCC Resolution are satisfied
and Grantee agrees to be bound by the terms of this Ordinance
through the execution of an Acceptance Agreement.
Section 3 . Relationship to Cable Communications Ordinance.
This Ordinance does not permanently amend any provision of the
Cable Communications Ordinance (the "Franchise") but provides that
certain provisions of that ordinance are modified for a period of
time as provided herein. Except as expressly modified in this
Ordinance and related agreements entered into pursuant to this
Ordinance, the provisions of the Franchise remain in full force
and effect. In the event of a conflict or inconsistency between
the Franchise or offering and any provision of this Ordinance, the
- - Restated Performance Agreement or any other document entered into
pursuant to this Ordinance, the provision of this Ordinance, the
Restated Performance Agreement or said document entered into
pursuant to this Ordinance shall be controlling so long as this
ordinance remains in effect.
Section 4 . Definitions.
Subdivision 1. The definitions in the Franchise also apply
to this Ordinance.
Subdivision 2. In addition, the following words and
phrases shall have the meanings given them:
(1) "Franchise" means the Cable Communications
Ordinance as now or hereafter amended.
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(2) "Local Programming" means access , community
access and/or local origination programming as set forth in
the Restated Performance Agreement.
(3) "Local Programming Obligations" means Grantee ' s
obligations under the Franchise and the Offering for
cablecast access , community access and local origination
programming.
(4) "News Show" means that show produced by Grantee
pursuant to an Agreement with the SWSCC dated January 23 ,
1991.
(5) "Relief Ordinances" means the CATV Relief
Ordinance as modified by the CATV Relief Ordinance
Amendment.
(6) "Restated Performance Agreement" means that
contractual agreement between Grantee, City and SWSCC
establishing the terms and conditions under which Grantee
will be required to fund and otherwise fulfill its Local
Programming requirements and establishing reporting
standards and criteria for Franchise compliance in other
areas .
(7) "Restructured Local Programming Obligations"
means Grantee ' s access , community access and local
origination programming obligations as set forth in the
Local Programming Restructuring Ordinance and the Restated
Performance Agreement . Compliance with the Restructured
Local Programming Obligations shall supersede and be in
complete satisfaction of the Local Programming Obligations.
Section 5 . Repeal of Relief Ordinances.
This Ordinance hereby repeals the CATV Relief Ordinance, Ordinance
No . 1121 and the CATV Relief Ordinance Amendment, Ordinance
No . 1121-Al effective August 1, 1992. Through July 31, 1992 , the
provisions of the Relief Ordinances shall remain in effect unless
specifically superceded by this Ordinance. Due to a typographical
error, Section 6 , Subdivision 1 of the CATV Relief Ordinance
Amendment stated an Automatic Termination date of March 1, 1991 .
The correct date to be referred to is March 1, 1992 .
Section 6. Financial Terms.
While this Ordinance is in effect the obligations of Grantee are
modified to the extent provided in this section.
Subdivision 1 . Franchise Fees - Percentage. The annual
franchise fee shall be 5% of Gross Revenues payable as follows .
An annual franchise fee of 4% shall be paid to City in equal
quarterly payments on or before the first day of each of the
months of November, February, May and August next following the
end of Grantee' s fiscal year. These payments are consistent with
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the payment arrangement contained in the Relief Ordinance. In
addition and pursuant to the new local programming funding
commitments set forth in Subdivision 4 herein, an annual franchise
. fee of 1% of Gross Revenues for the most recently completed
quarter shall be paid to City in quarterly payments on or before
the first day of each of the months of November, February, May and
August on current year revenues beginning August 1, 1992. For
purposes of calculating the annual franchise fee, all amounts
spent to fund the Restructured Local Programming Obligations shall
be deducted from Gross Revenues .
Subdivision 2. Letters of Credit. The City Council may by
resolution reduce the required amount of the Letter of Credit
below $50 , 000 if in its sole discretion it determines that a
lesser amount is reasonable and adequate to protect the public.
It may thereafter, by resolution, require the amount of the Letter
of Credit to be increased or fully restored to the amount of
$50, 000 . Grantee shall comply with this requirement within sixty
days after written notice has been given by the City.
Subdivision 3 . Performance Bond. The Grantee may dispense
with the $300 , 000 performance bond required by the Franchise. The
City Council may thereafter by resolution require that such bond,
or similar bond in a lesser amount, be provided by Grantee.
Grantee shall comply with this requirement within sixty days after
written notice has been given by the City.
Subdivision 4 . Restructured Local Programming
Obligations . Beginning with the third weekly show of November,
1991, Grantee shall assume responsibility for funding the
production of the News Show. The News Show shall continue to be
produced in a manner which is generally consistent with the terms
of the Agreement for Programming Services between Grantee and the
SWSCC, a copy of which is attached hereto as Exhibit 1. However,
the role of the SWSCC and the Member Cities shall be advisory in
nature and neither the SWSCC or Member Cities shall be required to
provide ongoing direct financial support for the News Show.
Grantee shall be obligated to continue to fund and produce the
News Show for a period of two (2) years through the second weekly
show of November, 1993 . Thereafter, Grantee shall be required to
expend at least $100 , 000 annually of its total funding requirement
under the Restructured Local Programming Obligations on local
origination programming. Such funding shall be expended by
Grantee in consultation with the SWSCC, as set forth in the
Restated Performance Agreement.
All provisions of the Relief Ordinances and
Performance Agreement related to the funding of Local Programming
shall remain in effect through July 31, 1992.
Beginning August 1, 1992, Grantee shall
assume full responsibility for funding the Restructured Local
Programming Obligations. From August 1 through December 31, 1992,
the budget for local programming shall be 5/12ths of $347, 000;
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provided that Grantee shall be required to meet all Restructured
Local Programming Obligations, including the production of the
News Show, irrespective of the actual cost of meeting such
obligations . Thereafter, the annual budget shall be escalated by
an amount equal to five percent (5%) of such budget on an
annualized basis as estimated in Exhibit 2 hereto. Throughout the
term of this Ordinance, Grantee shall consult with the SWSCC
concerning the provision of the Restructured Local Programming
Obligations pursuant to the terms of the Restated Performance
Agreement . The expenditures made pursuant to this subdivision
shall be in complete satisfaction of Grantee' s total Restructured
Local Programming Obligations during the period of this ordinance
and shall be deemed to satisfy Grantee' s Local Programming
Obligations as well.
The amount of' funding for the Restructured
Local Programming Obligations shall not include any costs of
operation, capital for access equipment replacement or
administration not directly related to the provision of Local
Programming. Grantee shall be responsible to maintain or replace,
as necessary, the equipment listed in the Exhibit to the Contract
for Local Programming Facilities, which is Exhibit 1 to the
Performance Agreement , and shall not offset such expenditures
against the funding for the Restructured Local Programming
Obligations .
Section 7. Automatic Termination.
The provisions of this Ordinance, and the reduced financial terms
contained herein may, at the option of City, cease to be
effective, upon the occurrence of the earliest of any of the
following events :
Subdivision 1 . Failure of the Grantee to restore or
replace the full required amount of the Letter of Credit as
- provided in Article VIII , Section 4 , paragraph H of the Franchise.
Subdivision 2. Failure of the Grantee to restore, replace
or increase either a Letter of Credit or bond within sixty days of
written notice by the City, as provided in Section 6, Subdivisions
2 and 3 of this Ordinance.
Subdivision 3 . A holding or determination by any court or
agency that any term, condition or provision of this Ordinance is
invalid or unenforceable, as a result of any action taken by
Grantee or anyone acting on Grantee' s behalf seeking such
determination.
Subdivision 4 . Sale or transfer of all or substantially
all of the System to a person or entity other than a parent,
subsidiary, related corporation, affiliated corporation, partner
or joint venturer of Grantee or any parent of Grantee.
Subdivision 5 . Termination of the Franchise.
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Section B. Other Terminations.
This Ordinance may also be terminated for cause, under the same
procedures for termination as are contained in the Franchise, for
the following reasons:
Subdivision 1. All grounds for termination provided in the
Franchise and the Local Programming Restructuring Ordinance,
except to the extent that Grantee' s performance obligations are
modified in the Local Programming Restructuring Ordinance.
Subdivision 2. Failure of the Grantee to comply with any
of the material provisions of the Restated Performance Agreement.
Section 9. Effective Date.
This ordinance shall be effective upon passage and adoption by
City and upon satisfaction of all of the following conditions:
(1) Publication of this Ordinance;
(2) Passage and adoption by each of the Member Cities of
the SWSCC of an Ordinance similar to this Ordinance
within 90 days of the adoption of such Ordinance by
the first Member City;
(3) Execution by Grantee of all documents necessary to
repeal the Relief Ordinances and effectuate the Local
Programming Restructuring Ordinance. Such documents
shall include, but not be limited to, those documents
listed on Exhibit 3 attached hereto ("Documents") .
The executed Documents shall be delivered at a closing
to be held at the office of the SWSCC administrator
within 90 days of the passage of the Local Programming
Restructuring Ordinance by the final Member City
( "Closing") .
(4) Conformance with the provisions of Article XIV of the
Franchise including delivery to the City of the
acceptance, opinion of legal counsel, guarantees, and
other documents as required by said Article XIV,
before or at Closing.
First Reading : 11-04-91
Second Reading : 11-18-91
Published in the Edina Sun-Current on December 27 , 1991
r
ATTEST:
Mayor
City C er
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Minnesota Suburban Newspapers
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
ss.
COUNTY OF HENNEPIN)
Gregory P t a c i n being duly sworn on an oath says that he/she is
the publisher or authorized agent and employee of the publisher of the newspaper known as
Edina Sun-Current and has full knowledge of the facts which are
stated below.
(A)The newspaper has complied with all of the requirements constituting qualification as a qualified newspaper,
as provided by Minnesota Statute 331A.02, 331A.07, and other applicable laws, as amended.
(8)The printed Ordinance No. 1122
which is attached was cut from the columns of said newspaper,and was printed and published once each week,
for One successive weeks; it was first published on Wednesday the 27 day
of November, 19-2-1—, 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 bcdefghi jklmnopgrstuvwxyz
BY:
TITLE: General Manager
Acknowledged before me on this
-97 day of O m 1
19._.
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RATE INFORMATION
(1)Lowest classified rate paid by commercial users $ 1.10 per line
for comparable space (Line, word, or inch rate)
(2)Maximum rate allowed by law for the above matter $ 74.9¢ per line
(Line, word, or inch rate)
(3)Rate actually charged for the above matter $ 62¢ per line
(Line, word, or inch rate)
City of Edina
(Official Publication)
CITY OF EDINA
48o1 W.50TH STREET
EDINA,MINNESOTA 55424
ORDINANCE NO.1122
An Ordinance Repealing the CATV Relief Ordinance,
Ordinance No.1121,and CATV Relief Ordinance Amendment,
Ordinance No.1121-A1,Providing for the Continuance
of Certain Aspects of the CATV Relief Ordinance,
As Amended,and Restructuring the Manner
in which Local Programming is Funded.
The City Council of the City of Edina ordains as follows:
Section 1.Short Title.
This ordinance shall be(mown as the"Local Programming Restructuring Ordinance."
Section 2.Background and Purpose.
In 1984,Grantee requested that the Southwest Suburban Cable Commission("SWSCC")a
Member Cities substantially restructure certain aspects of the Franchise in response to the seri
financial difficulties experienced by the Grantee.The Member.Cities enacted the CATV Re
Ordinance and the SWSCC and the Member Cities entered into the Performance Agreemen'
response to Grantee's request.The result was to reduce Grantee's Local Programming Obli
tions and Franchise Fee reqs. ment,provide Grantee with an incentive to refinance its debt obli
tion and increase the involvement of the SWSCC and Member Cities in funding Local ProgrE
ming Obligations and monitoring Grantee's performance.The CATV Relief Ordinance Ame
ment was enacted in 1988 as a part of the transfer of control of Grantee and resulted in the con
uance of the CATV Relief Ordinance with some modification.
In 1990,Grantee petitioned SWSCC to extend the provisions of the CATV Relief Ordinance
CATV Relief Ordinance Amendment(collectively"Relief Ordinances")through the term of
franchise.The SWSCC and Grantee reviewed the request through a series of meetings of the SW,
operating committee and commission.The SWSCC,Member Cities and Grantee concur that
implementation of the Relief Ordinances has contributed to the achievement of the original g
of the SWSCC and its Member Cities: stabilizing and improving the financial condition of
Grantee.As a result,certain SWSCC oversight responsibilities and reporting requirements
posed by the Relief Ordinances and Performance Agreement are no longer necessary.
The SWSCC and Grantee also concur that certain changes in the usage of chanhels on the ca
system and the provisionof access programming,community access programming and lc
ongtnation programming(collectively"Local Programming")resulted in a channel line-up
.=
more satellite programming services than originally proposed by Grantee,as well as for
inp Local Programming channels so as to better serve the Member Cities.The resulting prog
ming lineup provides diversity and appeal to CATV subscribers while maintaining a strong Io
Programming component.It was agreed.that the mix and level of satellite services and Ic
Programming should be continued.
Finally,it was determined that since Grantee had improved and stabilized its financial cot
tion,it should assume full responsibility for funding Local Programming as was contempla
at the time of the Franchise award.Since the SWSCC will no longer be a direct participani
the funding of Local Programming,it was determined that the role of the SWSCC in the oversi
of Local Programming should be restructured.
The SWSCC has adopted a resolution approving the modification and extension of certain I
visions of the Relief Ordinances and related documents("SWSCC Resolution").Each of the Mem
Cities must also adopt a similar Resolution.This Ordinance will be effective only if the ter
of the SWSCC Resolution are satisfied and Grantee agrees to be bound by the terms of this
dinance through the execution of an Acceptance Agreement.
Section 3.Relationship to Cable Communications Ordinance.
This Ordinance does not permanently amend any provision of the Cable Communications
dinance(the"Franchise")but provides that certain provisions of that ordinance are modif
for a period of time as provided herein.Except as expressly modified in thisprdinance and rela
agreements entered into pursuant to this Ordinance,the provisions of the Franchise remair
full force and effect.In the event of a conflict or inconsistency between the Franchise or offer
and any provision of this Ordinance,the Restated Performance Agreement or any other do
ment entered into pursuant to this Ordinance,the provision of this Ordinance,the Restated F
formance Agreement or said document entered into pursuant to this Ordinance shall be contr
ing so long as this ordinance remains in effect.
Section 4.Definitions.
Subdivision 1.The definitions in the Franchise also apply to this Ordinance.
Subdivision 2.In addition,the following words and phrases shall have the meanings given the
(1) "Franchise" means the Cable Communications Ordinance as now or hereafter
amendeu.
(2) Local Programming"means access,community access and/or local origination
programming as set forth in the Restated Performance Agreement.
(3) "Local Programming Obligations"means Grantee's obligations under the Fran-
chise and the Offering for cablecast access,community access and local origination
programming.
(4) News Show"means that show produced by Grantee pursuant to an Agreement
with the SWSCC dated January 23,1991.
(5) "Relief Ordinances"means the CATV Relief Ordinance as modified by the CATV
Relief Ordinance Amendment.
(6) "Restated Performance Agreement"means that contractual agreement between
Grantee,City,and SWSCC establishing the terms and conditions under which Grantee
will be required to fund and otherwise fulfill its Local Programming requirements and
establishing reporting standards and criteria for Franchise compliance in other areas.
(7) "Restructured local Programming Obligations"means Grantee§access,communi-
ty access and local origination programming obligations as set forth in the Local Pro-
gramming Restructuring Ordinance and the Restated Performance Agreement.Com-
pliance with the Restructured Local Programming Obligations shall supersede and be
in complete satisfaction of the Local Programming Obligations.
Section 5.Repeal of Relief Ordinances.
This Ordinance hereby repeals the CATV Relief Ordinance,Ordinance No.1121 and the CA
Relief Ordinance Amendment,Ordinance No.1121-A1 effective August 1,1992.Through July
1992,the provisions of the Relief Ordinances shall remain in effect unless specifically superce(
by this Ordinance.Due to a typographical error,Section 6,Subdivision 1 of the CATV Relief
dinance Amendment stated an Automatic Termination date of March 1,1991.The correct d
to be referred to is March 1,1992.
Section 6-Financial Terms.
While this Ordinance is in effect the obligations of Grantee are modified to the extent provi(
in this section.
Subdivision 1.Franchise Fees-Percentage.The annual franchise fee shall be 5%of Gr
Revenues payable as follows.An annual franchise fee of 4%shall be paid to City in equal quart
ly payments on or before the fist day of each of the months of November,February,May
August next following the end of Grantee's fiscal year.These payments are consistent with
payment arrangement contained in the Relief Ordinance.In addition and pursuant to the r.
local programming funding commitments set forth in Subdivision 4 herein,an annual frand
fee of 1%of Gross Revenues for the most recently completed quarter shall be paid to CIty in quar
ly payments on or before the first day of each of the months of November,February,May,
August on current year revenues beginning August 1,1992.For purposes of calculating the arm
franchise fee,all amounts spent to fund the Restructured local Programming Obligations st
be deducted from Gross Revenues.
Subdivision 2.Letters of Credit.The City Council may by resolution reduce the required amo
of the Letter of Credit below$50,000 if in its sole discretion it determines that a lesser amo
is responsible and adequate to protect the public.It may thereafter,by resolution,require
amount of the Letter of Credit to be increased or fully restored to the amount of$50,000.Gran
shall comply with this requirement within sixty days after written notice has been given by the C
Subdivision 3.Performance Bond.The Grantee may dispense with the$300,000 performai
bond required by the Franchise.The City Council may thereafter by resolution require that st
bond,or similar bond in a lesser amount,be provided by Grantee.Grantee shall comply e
this requirement within sixty days after written notice has been given by the City.
Subdivisions 4.Restructured Local Programming Obligations.Beginning with the third wee
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