Loading...
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. -2- (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 -3- 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; -4- 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. -5- 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 -6- 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._. No Gi3i IU A 4 Y4 *:1 ii<Nall tl=?t :71411;4 �ti�yf MY 4L �.Mtl3;ION EX, , 7.2-92 d�r�nmr�•�•",s.s.,.z.yaanr:o-rr m��s 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 Vil .si 3 d p, ORA C6 ':�tCT •� p` «m a 1 `�'w�q� '.yp�h • tl q' ��y is �`� �` t� L� ^. �i jry 1-1 � � d �� ��, 9�� W Aj .•�4 �4.y�d` �z s � ��f �,, � g 9� d 4 � ..� ki, VVVa $ E z �G r�py•�e�� � �N��{ � Y N f �� Y �U��. '� ..� k � � �yy # ������+� � e�*� a�S'!� q �f.'.Y. 21�^�'��''E3'��n��` :`�R��- ",Fl e�..w�.��. Cl. �Nt eA.�•�.. `�nW'�M. k �4 .'.7 {w* v'�..u�.X.s'