HomeMy WebLinkAbout19801215_regularMINUTES 235
OF THE REGULAR MEETING OF THE
EDINA CITY COUNCIL HELD AT CITY HALL
DECEMBER 15, 1980
Answering rolleall were members BYedesen, Courtney, Schmidt and Mayor Van Val -
kenburg. Councilman Richards arrived at the meeting at 9:05 p.m. following the
Cable Television Hearing, at which time Councilwoman Schmidt left the meeting.
CABLE TV ORDINANCE NO. 1120 GRANTED FIRST READING. Pursuant to due notice given,
public hearing was conducted on Ordinance No: 1120. The Mayor commented that
he was impressed with the proposals of Northern Cablevision and Teleprompter,
as well as Minnesota Cablesystems - Southwest. He emphasized that he had seen
the cable demonstration at Southdale Center but had not spoken to anyone at
that time. Mayor Van Valkenburg asked that the record show that, while Council-
man Richards was originally involved in working on preliminary sections of the
ordinance, he has never discussed any proposals with the Council. The Mayor
then read the following statement: "This meeting is to consider adoption by
the City of Edina of an ordinance granting a cable television system franchise
to Minnesota Cablesystems- Southwest, a Minnesota limited partnership, and of
certain findings required to be made by the City in connection with the franch-
ise grant. Edina, together with Richfield, Eden Prairie, Hopkins and Minne-
tonka, have been working together to achieve a similar franchise to be granted
O to one franchisee. The five cities have designed and implemented a franchise
process divided into two phases. The first phase involved the participation
of all five cities through their representatives on the Southwest Suburban
Cable Commission. The Commission's job was to prepare invitations to cable
Q companies, draft a preliminary franchise ordinance and other related documents,
Q receive and evaluate the proposals, hire cable consultants to assist the
evaluations, conduct public hearings, and, finally, make a recommendation to the
five cities. The Commission has now completed its work and has recommended to
the five cities that each grant a franchise to Minnesota Cablesystems - South=
west. Legally each city is the franchising authority and they are not bound by
the recommendation of the Commission. However, it was the expectation from the
outset that it would be advantageous to the five cities to attempt to arrive at
a common franchise with one company for all five cities. Also, all companies
which applied for the franchise urged the Commission to follow this process.
Therefore, each individual city should give careful consideration to the recom-
mendation of the Commission. We are now in the second phase. During this
phase each city will give separate consideration to the proposals, the consult-
ant reports, and information and comments given by interested persons, and,
finally, will consider adoption of the franchise itself. It is important to
stress that the overall process through both phases has been unified and con-
tinuous. Proceedings before the Commission have alternated with proceedings
before the separate city councils. Members of this City Council have attended
numerous hearings and meetings of the Commission as well as meetings of this
City Council relative to the franchise. It is the purpose of this meeting to
proceed toward completion of the second phase by considering adoption of an
ordinance granting a cable television system franchise to Minnesota Cablesy-
stems- Southwest, the applicant recommended by the Commission. We anticipate
that a number of people may wish to speak tonight. Therefore, to fulfill the
purpose of this meeting and to give as many persons as possible a chance to
speak, the following process will be used:
First, the Clerk will-read the ordinance;
Second, the City Manager will review the history of the franchising
process in this area and the other five cities;
Third, the City Attorney will summarize the Ordinance;
Fourth, the Commission's cable consultant will comment on Minnesota
Cablesystems- Southwest's technical ability, financial condition,
legal qualifications and character, and whether Minnesota Cablesy-
stems- Southwest's plans for constructing and operating the cable
system in the City are adequate and feasible;
Fifth, the Council members may have some questions;
Sixth, Minnesota Cablesystems - Southwest may make a statement. if it
wishes.
Then I presume that Northern Cablevision and Teleprompter will also wish to
speak. This Council has had two meetings already on cable television, one sep-
arately and one jointly with the other four cities. At both meetings all
three companies spoke. Also, the Council has received considerable informa-
tion from all companies and the Commission. Therefore, lengthy statements
should not be necessary. (At this point, Minnesota Cablesystems - Southwest
indicated that they should like to speak for approximately seven minutes,
Northern Cablevision indicates; that they would like to speak for fifteen min-
utes and Teleprompter said that they would like to speak for fifteen minutes.)
After the companies.are finished, others who wish to speak may do so. Each
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236
speaker should use the microphone and give his or her name and address. Please
avoid duplicative statements and limit statements to not more than five minutes.
Anyone wishing to make a written statement part of this hearing record may do so
by giving it to the Clerk by Monday, December 22, 1980, at 4:30 p.m. Two read-
ings of the ordinance at two separate are required for its adoption. One will
be at tonight's meeting and the other will be at a meeting to be held on Dec-
ember 29, 1980 at 4:00 p.m. at the City Hall. With that process and guidelines
in mind, will the Clerk please read the ordinance ?" Accordingly, the Clerk read
the following: "Ordinance No. 1120. An ordinance, including addendum with
exhibits, granting a franchise to Minnesota Cablesystems- Southwest, a Minnesota
limited partnership, to operate and maintain a cable communication system in the
City; setting forth conditions accompanying the grant of franchise; providing
for regulation, and use of the system; and prescribing penalties for the viola-
tion of its provisions." Mr. Rosland then read the following statement: "Mr.
Mayor, members of the City Council, let me briefly review for you the background
of the process that has been.followed to bring this ordinance to you. As you
know, Edina, together with Eden Prairie, Richfield, Minnetonka and Hopkins, have
joined together in the franchising process to bring about the development of a
joint cable communications system. The history of this process is quite exten-
sive. It started in 1972 when the five cities entered into a joint powers agree-
ment creating the Southwest Suburban Cable Commission. During all times material
to this ordinance, Mr. Wayne Courtney and myself, have been Edina's representa-
tions on the Commission. numerous studies were done over the years by that Com-
mission, including evaluation of various kinds of cable systems, review of the
industry itself, review of the standards that were developed by the State Cable
Board and the Federal Communications Commission and various on -site visits of
existing cable systems. In approximately June of 1979, the Commission, with the
support of this Council and the Councils of the other cities, embarked upon the
franchising process itself. It did so by hiring cable consultants, Ms. Anita
Benda, and the Cable Television Information Center, and an attorney for the Com
mission, Mr. Adrian Herbst. The cable consultants helped the Commission develop
various design criteria for the cable system in conjunction with the needs of
the cities, as expressed by the advisory commissions of the cities and the City
Councils. In'the spring of 1980, an invitation for applications and a prelimin-
ary ordinance were reviewed and authorized by the City. After that, the com-
mission, with the consent of the cities, proceeded to obtain proposals from
various cable companies. The proposals of three companies were submitted to the
Southwest Commission on June 16, 1980. At that meeting, and at a meeting of
June 18, 1980, the companies had the opportunity to speak to the Commission con-
cerning the proposals and to determine that all of the proposals were in accord-
ance with the invitation for applications. After that, more formal proceedings
were established in conjunction with the requirements of the Minnesota Cable
Board. As you know, the individual cities are the franchising authorities,
since they must adopt the ordinances granting the franchise to the selected
cable company. The Commission was to facilitate and coordinate this process,
and obtain expert help to aid the cities in the eventual approval of an ordinance
of the kind you are now considering. Because the cities are the franchising
authority, it was required by the rules of the State Cable Board, that the indi-
vidual City Councils conduct separate hearings. All of the cities did conduct
these required meetings. Edina's meeting was on August 18, 1980, Hopkins' was
on August 19, 1980, Richfield's and Minnetonka's were on August 25; 1980, and
Eden Prairie's was on September 2, 1980. At each of those meetings, representa-
tives of all three cable companies were present and gave oral presentations.
Additionally, members of the public gave oral presentations. Also, the Commis-
sion received minutes of each of those meetings. The Commission also held an
"additional public meeting at Edina West on September 22, 1980, for the purpose
of allowing the companies to make further presentations before the Commission.
Members of the Councils of the representative cities, and other interested
persons, also had an opportunity to be present at that meeting. The cable con-
sultants prepared a preliminary evaluation report and submitted it to the Com-
mission and to the three cable companies. Each company was given the opportunity
to respond in writing to that preliminary report, and they did do so. A final,
report was then prepared by the cable consultants. That report, with the minutes
of the various City Council meetings and other materials that had been received
by the Commission, were delivered to the members of the Commission for their
review and consideration. At the October 22, 1980, meeting of the Commission,
each company and other interested persons, were given a further opportunity to
address the Commission. The Commission then closed the meeting to public testi-
mony and after deliberation,.instructed its attorney to prepare a set of findings
to support a recommendation that Minnesota Cablesystems- Southwest be granted the
franchise, and to prepare a draft of an ordinance to incorporate the salient
features of the proposal of Minnesota Cablesystems- Southwest. On November 12,
1980, the Commission again met and reviewed the proposed findings and ordinance.
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237
It also determined that it-would not re -open the franchise process to further
public testimony, because, in their view, they had a complete record. The Com-
mission, at that meeting, then unanimously adopted findings recommending that
Minnesota Cablesystems - Southwest be granted the franchise by each of the five
cities, and recommending an ordinance form to the cities. Since November 12, the
City Attorneys, together with the attorney for the Cable Commission, have been
working very hard for the purpose of finalizing the ordinance before you tonight.
The ordinance incorporates the various features of the proposal of Minnesota
Cablesystems- Southwest and is in a form that, I understand, satisfies the needs
of the individual cities. I have outlined Elie process and the background of this
matter in a great amount of detail. I have done so because I firmly believe, as
Edina's City Manager, and one who has served on the Commission, that everything
possible has been done to make the procedure fair and open and to give every
applicant an equal opportunity to present its proposal. I believe that all the
requirements of the Minnesota Cable Board have been followed and the ordinance,
as presented to you, is in a form-that can be adopted by you. Further, I believe
that the recommendation made by the Commission to you is a good one and I recom-
mend that you accept the recommendation and award the franchise to Minnesota
Cablesystems- Southwest. Thank you." City Attorney Erickson then summarized the
proposed ordinance as follows: "Since October, 1979, in cooporation with the City
attorneys for Eden Prairie, Hopkins, Minnetonka, and Richfield and the attorney
for the Southwest Suburban Cable Commission (SWSCC), I have been involved in the
O drafting of the Franchise that is before you tonight. In October of 1979, the
m attorney for the SWSCC, Adrian Herbst, forwarded to all the City Attorneys a
�!1 proposed draft of a "Master Ordinance for a Joint Cable Communications System for
the Cities of Eden Prairie, Edina, Hopkins, Monnetonka and Richfield." This
Q process of revision involved consideration by the City Attorneys of six subse-
quent drafts of the franchise Ordinance, culminating with a Preliminary Franch-
ise Ordinance. The preliminary Ordinance was approved by the SWSCC and the City,
in conjunction with the approval of the invitation for applications. On November
12, 1980, the SWSCC recommended that the five franchises should be granted to
Minnesota Cablesystems- Southwest,'a Minnesota limited partnership. Following
that recommendation, the attorney for the SWSCC presented to the'Ci.ty Attorneys
a draft of the Ordinance which incorporated provisions of the Offering of
Minnesota Cablesystems into the preliminary Ordinance previously approved. In
this stage of review, four separate drafts of the Ordinance have been circulated.
The City Attorneys have met numerous times among themselves, with Adrian Herbst,
and with the attorneys and representatives of Minnesota Cablesystems in order to
assure that the Offering is accurately incorporated into the Franchise document
and to insure compliance with the rules of the MCCB. In addition, the Ordi-
nance has twice been submitted to the staff of the Minnesota Cable Communica-
tions Board for review and comment, once for review of the preliminary Ordinance
and then again for review of the Franchise as it incorporates the provisions of
the Grantee's Offering. The integration of the Offering of the Grantee into
the preliminary Ordinance has involved numerous hours of study and drafting to
insure that the Offering remained as proposed by the Grantee, and that the
obligations imposed upon it by the preliminary Franchise remained intact. This
lengthy and careful process was undertaken to insure that the Ordinance not
only serves the best interest of the City and its citizens, but to see that it
complies with all relevant laws and regulations. In my opinion, it now does so
comply. In addition, the City Attorneys have received and reviewed correspondence
from the applicants for the Franchise and other interested parties. My primary
purpose tonight is to set forth an overview of the Franchise and to highlight
its more important features. Attached to the Ordinance and made a part of it are
Exhibits A and B. Exhibit A is a map showing the initial service area and the
construction year phases. Exhibit B is the Grantee's rates. The preamble to the
Ordinance, following the Statement of Intent and Purposes, sets forth the four
findings that this Council was required to make in conjunction with the hearing
held August 18, 1980. Those findings are as follows: 1) The Grantee's techni-
cal ability, financial condition, legal qualification and character were con-
sidered and approved; 2) The Grantee's plans for constructing and operating
the system were considered and found adequate and feasible; 3) The Franchise
complies with existing applicable Minnesota statutes and regulations and franch-
ise standards of the MCCB; and 4) The Franchise is non - exclusive.
ARTICLE I
Article I states that the Ordinance shall be cited as "Cable Communications Ordi-
nance". The article also provides the definitions of words and phrases used
throughout the Franchise. .
ARTICLE II
Article II governs granting the Franchise. The Franchise is granted upon accept-
ance by the Grantee. The Grantee is required to accept the Franchise in the
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following manner:
1. Execute the Franchise document itself;
2. Deposit a non - refundable acceptance fee of $20,000.00, plus any costs of
the City in excess of that;
3. Deliver a $50,000.00 letter of credit; a $300,000.00 bond; and a guar -
antee by the parent corporations of the general partner of faithful per-
formance of the Franchise.
4. Tender public liability insurance policies setting forth coverage as
specified in the Franchise;
5. Submit an opinion of its attorneys certifying that th'2 company has the
power and the right to accept the Franchise; and
6. Execute an Acceptance Agreement binding the Grantee to perform the Franch-
ize in accordance with its "Offering ".
The basic grant of authority from the City to the Grantee is a grant by the City
to use City streets to erect, construct, operate and maintain the system. In
return for this grant, the Grantee agrees to provide all the services set forth
in its Offering and to pay to the City each year a Franchise fee of 5% of all
gross revenues derived from operation of the system in the City. After accepting
the Franchise, the Grantee must apply for and receive a Certificate of Confirma-
tion from the Minnesota Cable Communications Board (MCCB) before it begins to
construct and operate the system. The Franchise is for a term of 15 years from
the date of acceptance by the Grantee.
ARTICLE III. DESIGN OF THE SYSTEM
The Franchise requires the Grantee to provide two integrated networks - a sub-
scriber network of 54 video channels, plus FM channels and an institutional net -
work with a combined total of 472 channels with full two -way capacity. The sub-
scriber network designates channel 12 as an emergency channel to be operated by
the City and provides for an emergency alert override system permitting the inter-
ruption by the City of all programming. All subscribers will receive at least
seven (7) channels which are reserved for access use by the public, governmental
agencies, and educational institutions. One of these channels is Channel 6,
which must be designated and reserved for the state- required regional channel.
ARTICLE IV. SERVICE AND PROGRA11MING
Service in the service in the subscriber network is structured in three tiers;
1. The Universal Service Tier, provides seven access channels without monthly
cost, as well as the capability to receive six local broadcast stations that
can be received without cable.
2. The Family Service Tier, provides the seven access channels, plus 14 video
channels and FM reception; and'
3. The Full Service Tier, which provides a total of 54 channels, and includes
a sub -tier which offers two -way capability.
The Franchise requires the Grantee to devote extensive resources, including the
allocation of approximately 22 staff persons, across the entire five city area,
to the development and programming of the local channels. The community access
and programming obligations of the Grantee require that it:
1. Identify community access needs;
2. Train and consult with interested residents of the City in the use of access
equipment; and
3. Promote the availability and uses of community access.
A detailed procedure is also set forht in the Franchise for the handling of sub-
scribers complaints. Basically, such complaint must be investigated within 24
hours and if a subscriber complaint is not rectified within three days, the comp-
laint may then be filed with the City. If the City determines that a comp-
laint represents a violation of the Franchise, the City may order the Grantee to
appear before the Council Meeting to explain its failure to receify the complaint
and to show cause why the Council should not institute default proceedings.
ARTICLE V. CONSTRUCTION
The Franchise requires the Grantee to make service available to all residences
situated in residentially -zoned areas (including areas designed as planned unit
developments). This area is referred to as the initial service area. The
initial service area is to be developed in two phases, designated year one and
year two as shown on the map attached as Exhibit A to the Ordinance. Construc-
tion of the system in the initial service area must be completed within 18 months
after the Grantee receives the certificate of Confirmation from the MCCB. Exten-
sion of service, referred to as Line Extension Policy, to areas not in the initial
service area, must be provided by the Grantee based on its cost of time and mater -
ial.' Extensive provisions are included for insuring that the Grantee's construc-
tion complies with all State and City codes and that all City property disturbed
by construction is restored in a manner satisfactory to the City. The Grantee
is required to construct its line underground in any area where another line,
either electrical or telephone is underground and to change from aerial to�under-
ground construction upon request by and without cost to the City.
ARTICLE VI. SYSTEM OPERATIONS
The Grantee is required to maintain books and records available for-inspection-and
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239
must file specified reports at the time of the payment to City of its annual.
Franchise fee. If the Grantee enters into service contracts with subscribers,
the form and content of such contracts must be approved by the City. The sub-
scriber rates set forth in the Offering have been guaranteed for a period of two
years following the grant of the Franchise or until construction of the system is
completed, whichever is longer. Rate changes are subject to City approval. and
may be granted only after a public hearing. The City may employ a rate consult-
ant to advise and assist it in this process, and the Grantee is required to pay
all the City's costs incurred in the rate - making process. The City has, in
addition, retained'-the right to review the Grantee's performance, to require
evaluation sessions, to have the company perform tests of the system's perform-
ance, and to require the Grantee to modify the system.
ARTICLE VIII. INDEMNIFICATION
The Grantee is required to indemnify the City for all claims and liability
incurred by the City in connection with the following:
1. Damage to personal property arising out of the Grantee's or City's acts or
omissions;
2. Invasion of privacy, defamation, infringement of copyright or any other viola-
tion of the rights of any person;
3. The Grantee's failure to comply with any law.
4. Any loss Grantee suffers on account of damage to its property, loss of
(V income, loss of reputation or any other consequential damage resulting from
acts or omissions of the City.
In addition, public liability insurance must be provided in amounts specified in
the Franchise as well as the $50,000.00 letter of credit and the $300,000.00 bond.
The letter of credit serves as the primary source of payment for various penal-
ties the City may assess or certain costs the City may incur on account of any
Q failure of the Grantee to comply with the provisions of the Franchise, including
the following:
1. Failure to complete construction of the system - the penalty is $200.00 per
day;
2. Failure to provide required information and reports - $50.00 per -day;
3. Failure to test the system as requested by City - $50.00 per day;
4. Failure to modify the system as required - $200.00 per day;
5. Failure to comply with construction standards - $200.00 per day;
6. Failure to provide service specified in the Offering - $100.00 per day.
The Grantee is also required to post a $300,000.00 bond naming the City as
obligee and conditioned upon the faithful performance by the Grantee of the
Franchise and also upon the condition that should the Grantee fail to comply,
with any law, ordinance or regulation, that there be recoverable from the Grantee
and its surety any damages or losses suffered by the City up to the full amount
of the bond. The bond also guarantees payment by the Grantee of all claims and
• liens against City or public property and any taxes due to the City which arise
by reason of the construction, operation, maintenance or use of the system. In
addition, each violation of the Franchise is a misdemeanor. A hearing procedure
is provided allowing the Grantee opportunity to respond to the City's assessment
of a penalty. If, upon.hearing the City determines that no violation has taken
place, the City refunds all monies drawn from the letter of creditless all
costs and fees incurrec by the City as a result of the hearing process. If
the letter of credit is not returned to $50,000.00 within 3 days after assess-
ment of a penalty, the City may draw on the entire amount'of the letter.
ARTICLE IX. DEFAULT
The default section provides for written notification by the City to the Grantee
if the City determines that there has been:
I. A violation of any provision of the Franchise or of any provision of City,
State or Federal law;
2. An attempt to evade any provision of the Franchise;
3. Any fraud or deceipt practiced by the Grantee upon the City or the subscribers;
4. A material misrepresentation of fact in the application for and negotiation
of the Franchise.
5. A delay of more than 12 months in the construction schedule.
The Grantee is allowed a specific.period of time to cure the default, and if it
fails to do so, the City may, at its option, either elect to cure the default
or terminate the Franchise. Procedures are also set forth for revocation and
termination of the Franchise, and require written notice and public hearings.
The Franchise also provides that if the Grantee defaults under any of the terms
or provisions of a Franchise of any of the other four cities, such default may
at this City's option be deemed a default under this Franchise.
ARTICLE X. FORECLOSURE, RECEIVERSHIP
AND ABANDONMENT.
The City retains the right to cancel the Franchise should a receiver or a trustee
be appointed to take over and conduct the business of the Grantee. The Franchise
also prohibits the Grantee from abandoning any portion of the system without -
having given not less than 3 months prior notice. Abandonment of any portion of
e
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240
the system may be deemed a cause for termination of the Franchise.
SECTION XI. PURCHASE OF THE SYSTEM
The Franchise grants the City the right to purchase the system if at any time _
the Grantee receives a bona fide purchase offer which it is willing to accept.
Upon receipt of such an offer, the Grantee is required to give the City 6 months
within which to exercise its option to purchase on the same basis as set forth
in the offer. The City is also given the right to purchase the system upon
forfeiture, revocation or termination of the Franchise or at the expiration of
the Franchise term. In the event the City elects to purchase.under, this provi-
sion, the Grantee must negotiate with the City on the terms and conditions of
the sale. In the event the parties cannot agree, the matter is to be submitted
to arbitration. The purchase price to be paid by the City under this procedure
is set as the Grantee's cost less depreciation as shown on the books and records
or the system's market value, whichever is less. Good -will may not be included
'in the computation of the purchase price.
ARTICLE XII. MISCELLANEOUS
Any assignment or transfer of the Franchise in whole or in part or any sale or
transfer of any controlling interest in the Grantee is prohibited without prior
consent of the City. Upon expiration of the Franchise, or upon revocation or
termination, the City has the right to require the Grantee to remove,at the
Grantee's expense, all or any portion of the system from City streets and other
public property. The letters of credit, bonds, insurance, indemnity and penalty
provisions of the Franchise remain in full force and effect during the entire
term of the removal. If a material provision of the Franchise is affected by
any other law, ordinance or regulation, the City retains the right to amend,
modify, alter or repeal any provision of the Franchise as may be necessary to
carry out its intent and purpose. If any material provision of the Franchise is
found to be invalid or unenforceable, the City may revoke the Franchise without
incurring any liability to the Grantee. By accepting the Franchise, the Grantee
agrees that it will not at any time claim that any condition or term of the
Franchise is unreasonable, arbitrary or void or that the City lacks power or
authority to make such term or condition. As an additional protection for the
City, the Franchise provides that any dispute or question as to the interpretation
or application of the terms of the Franchise shall be resolved by the City Council
in its sole discretion.
ARTICLE XIII. ADMINISTRATION AND ADVISORY BOARD
The City Manager of the Manager's designee is designated as the Administrator of
the Franchise. In addition, the City may appoint an advisory board to monitor
the company's performance under the Franchise. The City specifically reserves the
right to delegate any of its rights or obligations under the Franchise to any
body or organization.
ARTICLE XIV. JOINT SYSTEM
Franchise specifically states that the system is intended to be a part of a
single system that serves the Cities of Eden Prairie, Edina, Hopkins, Minnetonka
and Richfield. The Grantee's Offering is incorporated by reference and made a
part of the Franchise. The Offering consists of the following documents:
1. The proposal of the Grantee dated June 16, 1980, consisting of three bound
notebooks;
2. An August 15, 1980, letter from William R. Craig, Vice President of the
Grantee, to Mr. Wayne Courtney, Chairman cif the SWSCC; and
3. The response dated September 24, 1980, of the Grantee to CTIC's request.
However, to the extent any provision-of the Offering is not specifically set
forth in the Franchise, or not validly incorporated by reference, the City
retains the right to amend the Franchise to include such provision as of the
effective date of the Franchise term. The Grantee is given 30 days from the last
date of adoption of a similar Franchise by the other cities of the SWSCC to
accept this Franchise. In no event, however, may acceptance occur later than 90
days after the adoption of this Franchise ordinance unless the time is extended_
by the-City. The document further provides, however, that if less than all of
the other cities offer a similar Franchise to Grantee, the Grantee or the City
may cancel the Franchise and all of their respective obligations hereunder. If
the Grantee elects to cancel this Franchise, however, it must also cancel all
other Franchises granted to it by the other Cities of the SWSCC.
CONCLUSION
The Franchise document before you has undergone extensive review and redrafting
in order to insure that the best possible Franchise was presented to this City.
for adoption. I believe the Franchise before you is in form and substance
acceptable for adoption and if so adopted would be a valid exercise of your auth-
ority. I have been advised that Richfield approved this Ordinance at its meet-
ing on December 8, 1980." _
Ms. Anita Benda then issued the following statement: "My name is Anita Benda.
The Cable Television Information Center (CTIC) of Washington, D.C.,�was hired
by the Southwest Suburban CATV Study Commission to assist it and the five cities
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9V
which are members of the Commission to develop a document soliciting applications
for the franchises (Invitation.for Applications) ( "IFA "), and to evaluate all
applications received. I have an ongoing contract with CTIC to perform wortc in
this metropolitan area on its behalf, and was assigned by CTIC to guide the Com-
mission in its policy decisions, and to serve as a local coordinator for the pro-
cess, working with the Commission and its executive committee. I was responsible
for writing the IFA and part of the evaluations reports. As you know, three
companies submitted applications: Minnesota Cablesystems- Southwest, Northern
Cablevision, Inc., and Telprompter of Southwest Hennepin County, Inc. In the
course of evaluating the proposals submitted; CTIC described and compared the
applications in many different areas, including ownership structures, financial
ability to construct the system, technical and engineering plans, and the proposed
services and rates. The evaluation compared what each applicant proposed in
relation to the required and desired system design operation, construction and
services that were outlined in the IFA. The evaluation report was presented in
two parts: a preliminary report, which described, compared and analyzed the
proposals, and posed questions requesting clarifications from all applicants; and
a final report commenting on the clarifications presented, and stating our final
conclusions and rankings of the applicants in the several areas. As part of
the evaluation, CTIC and I recommended to the Commission that it seek information
on the past performance of the applicants in the cities they serve. Results of
n , a performance check conducted by city staff members were made available in Octo-
ber. My purpose this evening is not to review-CTIC's entire evaluation, but to
Q address five areas that are referenced in the ordinance you have before you:
technical ability, financial condition, legal qualifications, character, and
construction and operating plans of the applicant recommended to you by the Com-
a mission, Minnesota Cablesystems - Southwest. I understand that this City and each
city conducted hearings in August, during which these areas were considered for
each of the three applicants. The hearings also allowed each applicant to
address the councils regarding its proposal.
TECHNICAL ABILITY
After a thorough consideration of such elements of the engineering and technical
plans as channel capacity, system performance, and system reliability, mainten-
ance and repair, CTIC's final report, based on the strength and weaknesses of
the three proposals, ranked Minnesota Cablesystems- Southwest over the other two
applicants.
FINANCIAL CONDITION
Minnesota Cablesystems- Southwest has presented evidence that through its own
means and its general partner it has the capital commitment and bank financing
to meet its financial commitment for the Southwest project of $22,500,000 capital
investment over the first three years of the franchise.
.LEGAL QUALIFICATIONS
The IFA stated that "evidence must be presented to assure the cities that the
applicant complies with the applicable rules, regulations and statutes of the FCC,
the State of Minnesota, and the Minnesota Cable Communications Board regarding
ownership and control of regulated franchises and business." Information sub-
mitted indicates Minnesota Cablesystems - Southwest has complied with the FCC and
the State Board rules. In its application, Minnesota Cablesystems - Southwest
states that if any part of its application did not comply with the standards,
the minimum acceptable standards or requirements imposed in law or rule will sup-
ersede that part of the application with which the law or rule conflicts, and
will be binding on the company.
CHARACTER QUALIFICATIONS
Each applicant submitted information regarding its general character. In
response to specific questions in the IFA, Minnesota Cablesystems- Southwest
indicated that neither it nor any parent corporation or principal had been con-
victed of a criminal . offense such as fraud, bribery, false or misleading advertis-
ing, or violation of FCC regulations, nor has it or any parent corporation or
principal had any business licenses revoked. Minnesota Cablesystems - Southwest
stated neither it nor any parent corporation or principal has been found to be
in violation of any existing'franchise agreements. The performance record of
the parents corporation of Minnesota Cablesystems- Southwest as shown by the
staff report reflects that they fulfill their commitments in the cities served
and that there were no service problems in its existing operations.
CONSTRUCTION AND OPERATING PLANS
Minnesota Cablesystems- Southwest provided details of its construction and opera-
ting plans, which were evaluated in CTIC's reports. In general, Minnesota
Cablesystems - Southwest's plans were found to be adequate and feasible."
Mr. William Craig of Minnesota Cablesystems- Southwest spoke on the ability of
his company to perform according to the ordinance. Mr. James Erickson, repres-
enting Northern Cablevision, said that rates for his company were lower than
those of Minnesota Cablesystems- Southwest. Mr. Gary Gandrud of Teleprompter
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raised what he stated are a number of legal issues concerning the award to Minne-
sota Cablesystems - Southwest. In response to a question of Mr. and Mrs. James
Grotz, 5513 Park Place, the City Attorney read the names of the partners of Minne-
sota Cablesystems - Southwest. In response to the objections of Mr. Grotz that the
rates of Minnesota Cablesystems- Southwest are not the cheapest, it was explained
that it was impossible to compare the cost of the three proposals with other .
communities because of the unique requirements of the Franchise. Mr. Wayne Popham
of Minnesota Cablesystems- Southwest said that his company had projected more
subscribers and that they are confident of.their application. Mr. Ronald Abrams
of Tele- prompter emphasized the fact that his company's estimate of underground
installation was more accurate and suggested that the other companies did not do a
proper field survey. Mr. Adrian Herbst was present but made no comment. The
Mayor emphasized that any written comments should be submitted to the City Clerk
no later than December 22, 1980, at 4:00 p.m. Councilman Bredesen commented that,
while he had been critical that the Franchise process had taken so long, he had
ranked the applicants himself and concurred with the recommendation of the Commis-
sion and spoke of his faith in the judgment of Councilman Courtney, Mr. Rosland
and Mr. Campbell. He said that he is concerned that very few people-will be
willing to pay the tremendous cost of local access and origination. -He then
offered Ordinance No. 1120 for First Reading as follows:
ORDINANCE NO. 1120
AN ORDINANCE, INCLUDING ADDENDUM WITH EXHIBITS, GRANTING
A FRANCHISE TO MINNESOTA CABLESYSTEMS- SOUTHWEST, A
MINNESOTA LIMITED PARTNERSHIP, TO OPERATE AND MAINTAIN A CABLE
COMMUNICATION SYSTEM IN THE CITY; SETTING FORTH CONDITIONS
ACCOMPANYING THE GRANT OF FRANCHISE; PROVIDING FOR
REGULATION, AND USE OF THE SYSTEM; AND PRESCRIBING PENALTIES
FOR THE VIOLATION OF ITS PROVISIONS
The City Council of the City of Edina ordains:
STATEMENT OF INTENT AND PURPOSE
The City intends, by the adoption of this Franchise, to bring about the
development of a System, and the continued operation of it. Such a development
can contribute significantly to the communication needs and desires. of many.
Further, the City may achieve better utilization and improvement of public.servi-
ces with the development and operation of a Cable Communications System.
Past studies, participated in by City, have led the way for organizing a
means of procuring and securing a Cable Communications System deemed best suited
to the City, in the Judgment of the Council. This has resulted in the preparation
and adoption of this Franchise.
FINDINGS . -
In the review of Grantee's proposal and application and as a result of public
hearings, the City Council makes the following findings:
A. The Grantee's technical ability, financial condition, legal qualifications,
and character were considered and approved in a full public proceeding after
due notice and reasonable opportunity to be heard;
B. Grantee's plans for constructing and operating the System were considered and
found adequate and feasible in.a full public proceeding after due notice and
reasonable opportunity to be heard;
C. The Franchise granted to Grantee by City complies with the existing applic-
able Minnesota Statutes and regulations and Franchise standards of Board;. and
D. The Franchise granted to Grantee is nonexclusive.
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ARTICLE I.
SHORT TITLE AND DEFINITIONS
SECTION 1. SHORT TITLE
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This Ordinance shall be known and cited as the Cable Communications Ordi-
nance.
SECTION 2. DEFINITIONS
For the purpose of the Franchise, the following terms, phrases, words and
their derivations shall have the meaning given herein. When not inconsistent with
the context, words used in the present tense include the future, words in the
plural number include the singular number, and words in the singular number in-
clude the plural number. The words "shall" and "will" are mandatory and "may" is
permissive. Words not defined shall be given their common and ordinary meaning.
A. "Basic Service" means all subscriber services provided by Grantee including
the delivery of broadcast signals, covered by the regular monthly charge paid
by all subscribers, excluding optional, services for which a separate charge
is made.
O B. "Board" means the Minnesota Cable Communications Board.
CD C. "City" means City of Edina, 'a municipal corporation, in the State of Minne-
sota.
Q
Q D. "Class IV Channel" means a signaling path provided by a System to transmit
signals of any type from a subscriber terminal to another point in System.
E. "Connection" means the attachment of the drop to the first radio or televi-
sion set of the subscriber.
F. "Converter" means an electronic device, which converts signals to a frequency
not susceptible to interference within the television receiver of a subscrib-
er, and by an appropriate channel selector also permits a subscriber to view
all basic subscriber signals included in the basic service delivered at
designated converter dial locations.
G.
"Council" means the governing body of City.
H.
"Drop" shall mean the cable that connects the subscriber terminal to the
nearest feeder cable of the cable.
I.
"FCC" shall mean the Federal Communications Commission and any legally ap-
pointed, designated or elected agent or successor.
J.
"Grantee" is Minnesota Cablesystems - Southwest, a Minnesota Limited Partner-
ship, its agents or employees.
K.
"Gross Revenues" shall mean all revenue derived directly or indirectly by
Grantee, its affiliates, subsidiaries, parent, and any person in which Gran-
tee has a financial interest of five percent (5 %) or more from or in connec-
tion with the operation of the System, including but not limited to, basic
subscriber service monthly fees, pay cable fees, installation and reconnec-
tion fees, leased channel fees, converter rentals, studio rental, production
equipment and personnel fees, and advertising revenues. The term does not
include any taxes on services furnished by Grantee and imposed directly upon
any subscriber or user by the State, City or other governmental unit and
collected by Grantee on behalf of said governmental unit.
L.
"Installation" means the connection of the System from feeder cable to the
.
point of connection.
M. "Lockout Device" is an optional mechanical or electrical accessory to a
subscriber's terminal which inhibits the viewing of a certain channel or
channels provided by way of cable communications system.*
N. "Offering of Grantee" or "Offering" shall mean that certain document dated
December 5, 1480, entitled "Offering of Grantee" and signed by Grantee and
City, which document is on file with the City Clerk.
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0. "Public Property" is any ,real property owned by City other than a street.
P. "Scrambler /Descrambler" refers respectively to the equipment installed to the
cable communications system's headend equipment and subscriber terminal used
to isolate pay cable and other ancillary service channels from basic service
which is accomplished by electronically distorting the signal prior to its
transmission through the cable communications system and reconstituting the
singal at each authorized location for subsequent display.
Q. "Sidewalk" is the portion of a street delineated for pedestrian travel.
R. "Street" shall mean the surface of and the space above and below any public
street, road, highway,. freeway, lane, path, public way, alley, court, side-
walk, boulevard, parkway, drive or any easement or right -of -way now or here-
after held by City which shall, within its proper use and meaning in the sole
opinion of City, entitle Grantee to the use thereof for the purpose of in-
stalling or transmitting over poles, wires, cables, conductors, ducts, con-
duits, vaults, manholes, amplifiers, appliances, attachments and other prop-
erty as may be ordinarily necessary and pertinent to a System.
S. "SWSCC" shall mean the Southwest Suburban CATV Study Commission.
T. "Subscriber" means any person or entity who subscribes to a service provided
by Grantee by means of or in connection with the System regardless of whether
a fee is paid for such service.
U. "System" means a system of antennas, cables, wires, lines, towers, waveguides
or other conductors, converters, equipment or facilities, designed and con-
structed for the purpose of producing, receiving, transmitting, amplifying
and distributing, audio, video and other forms of electronic or electrical
signals, located in City. Said definition shall not include any system
wholly internal to one or more multiple unit dwellings under common owner-
ship, control or management, and does not use City streets or other public
property. In any event, system as defined herein shall not.be inconsistent
with the definition as set out in the rules of the Board.
ARTICLE II.
GRANT OF AUTHORITY AND GENERAL PROVISIONS
SECTION I. GRANT OF FRANCHISE AND ACCEPTANCE
City hereby grants to Grantee, a nonexclusive franchise subject to all of the
terms and conditions as herein provided:
A. Grantee shall accept this Franchise in the following manner, and not later
than the time set out in Article XIV, Section 2:
(I) This Franchise will be properly executed and acknowledged by Grantee and
delivered to City..
(2) At the same time as delivery of the executed Franchise, Grantee shall
deposit with City its nonrefundable acceptance fee in.- the sum of
$20,000.00, for the purpose of defraying the costs and expenses -of
developing this Franchise and for the enforcement and administration
costs to be incurred until other Franchise fees may be realized. 'If
such costs to City exceed the sum of $20,000.00, City may charge such
excess costs to Grantee and Grantee shall pay them on demand by City.
(3) All security deposits, Letters of Credit, insurance contracts, accep-
tances, bonds, attorneys' opinions, organizational and creation docu-
ments and guarantees required of Grantee by this Franchise, shall be
delivered with the executed Franchise and in accordance therewith.
SECTION 2. AUTHORITY GRANTED
A. City grants to Grantee the permission to use streets for erecting, construc-
ting, operating and maintaining the System. Other rights necessary for the
System on other public or private property must be obtained by Grantee, but
City shall have no obligation to. give or grant or assist in obtaining the
same.
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B. Grantee shall construct and maintain the System so as not to interfere with
other uses of streets. Grantee shall make use of existing poles and other
facilities available to Grantee.
C. Notwithstanding the above grant to use streets, no street shall be used by
Grantee if City in its sole opinion determines that such use is inconsistent
with the terms, conditions or provisions by which such street was created or
dedicated, or presently used.
SECTION 3. AGREEMENT
A. Grantee agrees to be bound by all the terms and conditions of this Franchise.
B. The Grantee also agrees to provide all services specifically set forth in,
and to comply with all provisions of, its Offering to provide a System within
the boundaries of City. Further, failure of Grantee to provide a System as
described in its Offering, at City's option, shall be a violation of the
provisions of this Franchise. In the event of conflicts or discrepancies
between the Offering of Grantee and the provisions of this Franchise, the
provisions which provide the greatest benefit to City, in the opinion of the
Council, shall prevail.
SECTION 4. FRANCHISE TERM
This Franchise shall commence upon acceptance by Grantee and shall expire 15
years from date of acceptance.
SECTION 5. AREA
This Franchise is granted for City as it exists from time to time during the
term of this Franchise.
SECTION 6. POLICE POWERS
A. Grantee's rights are subject to the police power of City to adopt and enforce
ordinances necessary to the health, safety and welfare of the public.
B. Any conflict between the provisions of this Franchise and any other present
or future lawful exercise of police powers of City shall be resolved in favor
of City.
SECTION 7. USE OF GRANTEE FACILITIES
City shall have the right to install and maintain, free of charge, upon the
poles and within the underground pipes and conduits of Grantee any wires and
fixtures desired by City. Grantee waives any claim against City arising from
City's exercise of these rights.
SECTION 8. WRITTEN NOTICE
All notices, reports or demands required to be given in writing under this
Franchise shall be deemed to be given when delivered personally to any officer of
Grantee or City's Administrator of this Franchise or 48 hours after it is deposi-
ted in the United States mail in a sealed envelope, with registered or certified
mail postage prepaid thereon, addressed to the party to which notice is being
given, as follows:
If to City: 4801 West 50th Street
Edina, Minnesota 55424
If to Grantee: 4344 IDS Center
.Minneapolis, Minnesota 55402
Such addresses may be changed by either party upon notice to the other party given
as provided in this section.
SECTION 9. RIGHTS OF INDIVIDUALS
A. No signals, including signals of a Class IV Channel, shall be transmitted
from a subscriber terminal.except as required to provide a service authorized
by this Franchise and the subscriber. Grantee and any other person shall
neither initiate nor use any procedure or device for procuring or storing
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information or data from a subscriber's terminals or terminal by any means,
without the prior :authorization of the affected subscriber which shall not
have been obtained from the subscriber as a condition of service. The re-
quest for such authorization shall be contained in a separate document and
identify the purpose for which the data or information is being gathered or
stored. After the first year of the authorization's initial signing, Grantee
shall, for each year said authorization is in effect without revocation, mail
a notice to each authorizing subscriber informing him or her of *his right to
revoke said authorization. The authorization shall be revocable at any time
by the subscriber without penalty of any kind whatsoever. A separate autho-
rization shall be required for each type or classification of data or infor-
mation sought from a subscriber terminal.
B. Grantee shall not, without the written authorization of the affected sub-
scriber, provide to anyone data identifying or designating any subscriber.
Any data authorized shall be made available upon request by and without
charge to the authorizing subscriber in understandable fashion, including
specification of the purpose for which the information is being,gathered and
to whom and for what fee the information is to be sold.
C. Grantee shall not tap or monitor, arrange for the tapping or monitoring, or
permit any other person to tap or monitor, any cable, line, signal input
device, or subscriber outlet or receiver for any purpose whatsoever, without
the prior written authorization of the affected subscriber as required by
paragraph A of this section.
D. Nothing herein contained shall prohibit Grantee from verifying System opera-
tion and the transmission of signals to an affected subscriber or from moni-
toring for the purpose of billing.
SECTION 10. CERTIFICATE OF CONFIRMATION
Grantee shall abide by the then current rules and regulations of Board re-
garding the application, approval, and renewal of a Certificate of Confirmation.
Failure of Grantee to obtain a Certificate of Confirmation or a renewal thereof
shall result in automatic termination of this Franchise, and this Franchise shall
cease to be of any force or effect. However, Grantee may operate the System while
the Board is considering an application for renewal of the Certificate of Confir-
mation.
ARTICLE III.
DESIGN OF SYSTEM
SECTION 1. CHANNEL CAPACITY - SUBSCRIBER NETWORK
Grantee shall initially activate and thereafter maintain a subscriber network
having at least a forward capacity of 54 video channels, plus the FM audio band,
and a reverse capacity of four video channels. The design will provide for a
self - contained bidirectional network in each City forming part of this System.
The System will be programmed from a central point, but the configuration will
accommodate the practical isolation of City, allowing for the distribution of
unique programming to it. The System shall be capable of increasing its channel
capacity as technology permits and needs arise.
SECTION 2. PICTURE QUALITY AND TECHNICAL REQUIREMENTS
A. The System will produce a picture upon each subscriber's television screen in
black and white or color, depending upon whether color is being telecast and
provided the subscriber's television set is capable of producing a color
picture, that is undistorted and free from ghost images, without material
degradation of color fidelity. The System shall produce a sound that is
undistorted on any receiver of a subscriber. Grantee, at its expense, shall
install and maintain the System so as not to interfere with any subscriber's
receipt of local broadcast stations.
B. The System shall transmit. or distribute signals to 'all television and radio
receivers of all subscribers without causing crossmodulation in the cables or
interfering with other electrical or electronic systems or the reception of
other television or radio receivers.
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C. Grantee shall construct and maintain a System that at least meets minimum
technical standards now.or hereafter promulgated by the FCC relating ,to cable
communications systems; provided, however, that in no event shall the techni-
cal standards required to be met by Grantee be less stringent than the FCC
standards in effect at the time of the adoption of the Ordinance, nor shall
Grantee be required to meet minimum FCC technical standards which apply
solely to cable communications systems for which franchises are granted sub-
sequent to the acceptance of this Franchise.
D. The System shall be installed and remain capable of using all band equipment
and of passing the entire VHF bands, mid -band, super -bands and FM band up to
402 MHz.
E. The System shall be designed for and operated on a 24 hours a day continuous
operation basis.
F. Grantee shall specify the procedure for initially and subsequently testing
the technical capacity of the System and agrees to have City select a con-
sultant to review and perform such testing procedure. The results of any
tests required by the FCC shall be filed within ten days of the conduct of
such tests with the City and the Board. Other representatives of City may be
Npresent during testing. The tests may be done annually at such times as is
O determined by City, with notice to Grantee. All expenses for all such tests
shall be paid by Grantee.
CD
SECTION 3. TWO -WAY CAPACITY
'Q Grantee shall initially activate and thereafter maintain a two -way capable
"Q System (audio, video and data impulse). This will include fully interactive
service capability provided by a centralized computer system and customized sub-
scriber home terminals, backed up by full standby powering throughout the System.
SECTION 4. FACILITIES
The Grantee shall construct, maintain and continue to provide all facilities
and equipment set forth in the Offering including, but not limited to, the head -
end, hubs, distribution system, studios, equipment and other facilities. Gran-
tee's plan, as set forth in the Offering, for implementing the construction,
utilization and maintenance of these facilities, including its plans for accommo-
dating future growth and changing needs and desires, shall be fully and timely
performed.
SECTION 5. SPECIAL CHANNEL AND ACCESS REQUIREMENTS
A. Grantee will carry broadcast stations in accordance with FCC rules as from
time to time revised.
B. No converter will be required for the seven channels of the Universal Service
Tier. Converters may be required for the Family Service Tier and for the
Full Service and Interactive Tiers. A charge for lease or purchase from
Grantee may be made by Grantee, or a subscriber may lease or purchase a
converter from any other source._ For premium services Grantee may require
the use of a Grantee converter or descrambler.
C. Channel 12 shall be an emergency channel operated by City.
D. Grantee will provide an audio /visual emergency alert override system that
will permit the initial interruption by City of all audio (including RI) and
video programming.
E. Grantee shall provide at least seven channels for access use (including one
for each of the following uses:, public, government, leased, educational,
.regional). All residential subscribers who receive all or any part of the
total services offered on the System shall also receive all of said seven
access channels at no additional charge. These channels shall be activated
upon System activation and thereafter maintained. Grantee shall establish
rules and regulations prior to System activation for the use of access chan-
nels which shall be approved by City before implementation and thereafter
shall not be altered or amended without approval of City. In preparing such
rules:
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(1) Grantee shall provide an equal opportunity for use of access services.
(2) Grantee will consider needs assessments prepared by City.
(3) Grantee shall develop a plan to allocate to City a reasonable use and
fair schedule of channel time, use of equipment and facilities so that
it can receive programming unique to its needs.
(4) Grantee will comply, at a minimum, with the requirements of City and the
Board now or hereafter adopted or determined by City or the Board re-
garding access channels. Such requirements of the Board are hereby made
a part of this ordinance and include the following:
(a) Grantee shall, to the extent of the System's available channel
capacity, provide to each of its subscribers who receive all or any
part of the total services offered on the System, reception on at
least one specially designated noncommercial public access channel
available for use by the general public on a first come, nondis-
criminatory basis; at least one specially designated access channel'
for use by local educational authorities; at least one specially
designated access channel available for local government use; and
at least one specially designated access channel available for
lease on a first come, nondiscriminatory basis by commercial and
noncommercial users (hereinafter the "access channels "). Subscrib-
ers receiving only alarm system services or only data transmission
services for computer operated functions shall be exempt from this
requirement. The VILE' spectrum shall be used for at least one of
the specially designated noncommercial public access channels re-
quired. No charges shall be made for channel time or playback of
prerecorded programming on at least one of the specially designated
noncommercial public access channels. However, personnel, equip-
ment and production costs may be assessed for live studio presenta-
tions exceeding five minutes in length. Charges for such produc-
tion costs and any fees for use of other public access channels
shall be consistent with the goal of affording the public a low
cost means of television access. Access facilities, equipment
and/or channel time will be made available to the general public,
any group or individual resident in City for the production and /or
cablecasting of noncommercial programming free of charge on a first
come, nondiscriminatory basis.
(b) Whenever any of the access channels are in use during 80 percent of
the weekdays-(Monday- Friday), for 80 percent of the time during any
consecutive three hour period for six weeks running, and there is
demand for use of an additional channel for the same purpose,
Grantee shall then have six months in which to provide a new spe-
cially designated access channel for the same purpose at no addi-
tional cost to subscribers.
(c) The rules and regulations established by the Grantee and approved
by City governing the access channels shall be filed with the Board
within 90 days after any such channels are put into use.
(d) Subscribers receiving programs on one or more special service chan-
nels without also receiving the regular subscriber services may
receive only one specially designated composite access channel com-
posed of the programming on access channels. Subscribers receiving
only alarm system services or only data transmission services for
computer operated functions shall not be included in this require-
ment.
(5) The Grantee shall comply, at a minimum, with the requirements of City
and Board, now or hereafter adopted by City or Board regarding public
use of its equipment, including the following:
(a) Grantee shall make readily available for public use at least "mini -
mal equipment necessary for the production of programming and play-
back of prerecorded programs for the specially designated noncom-
mercial public access channel. The Grantee shall also make readily
available upon need being shown,the minimum equipment necessary to
make it possible to record programs at remote locations with bat-
tery operated portable equipment.
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(b) Need within the meaning of this paragraph shall be determined in
the sole discretion of City or by subscriber petition. Said peti-
tion must contain the signatures of at least 10 percent of the
subscribers of System, but in no case more than 500 nor fewer than
100 signatures.
SECTION 6. INSTITUTIONAL NETWORK
The System shall include at a minimum a separate institutional telecommunica-
tions network, interconnected with the subscriber network, of eight sections with
a combined transmission capacity of 472 channels, with full two -way capability.
Said network shall be offered, activated, expanded, marketed and developed at a
minimum in full compliance with the Offering. Need for the provision of institu-
tional service shall be determined in the sole discretion of City.
SECTION 7. SERVICE TO PUBLIC BUILDINGS AND EDUCATIONAL INSTITUTIONS
Grantee shall provide, at a minimum, subscriber and institutional network
service to all publicly owned buildings, in City (City Hall, police department,
fire department, schools, libraries, etc.), all educational institutions in City,
and all buildings now or hereafter wholly or partially owned or leased for govern-
mental use by any state, federal or local government in City, or owned or leased
by school districts or educational institutions in City, all as set out in the
Offering. Need for either or both of such network services as referred to in the
Offering shall be determined in the sole discretion of City.
SECTION 8. INTERCONNECTION
Grantee will comply with all present and future rules, regulations and orders
of the Board regarding interconnection of systems, and will cooperate with any
agencies or utilities involved with interconnection. At such times as intercon-
nection is required, Grantee shall accomplish this without additional charge to
subscribers. System shall be initially constructed so that other systems now or
hereafter constructed in any area adjacent to System may be interconnected with
System without delay.
SECTION 9. NARROWCASTING
Grantee shall provide separate programming capability to City on each of the
access channels on the Universal Service Tier.
SECTION 10. COMPUTER SERVICES
Grantee shall construct System to accommodate interactive data communications
with a total network transmission time of less than one -tenth (1 /10) of a second.
SECTION 11. REGIONAL CHANNEL
The standard VHF Channel 6 is hereby designated for uniform regional channel
usage. However, until the regional channel becomes operational, Grantee may
utilize the standard VHF Channel 6 as it deems appropriate. Use of time on the
regional channel shall be made available without charge.
ARTICLE IV.
SERVICES AND PROGMMING,
SUBSCRIBER CONTRACTS, COMPLAINTS
SECTION 1. SERVICES AND PROGRAMMING
A. Services and Programming. The programming and services shall be structured
in three tiers, all of which will be programmed at the time of System acti-
vation, providing, at a minimum, the programming and services set- forth in
the Offering. Programming and services as designated in the Offering shall
be changed by Grantee only upon prior written approval of City. The three
tiers are as follows:
(1) The Universal Service Tier. The Universal Service Tier shall be provid-
ed as a public service without charge after installation, permitting
free view of seven access channels. A subscriber may lease or buy a
converter, permitting a total service of 13 channels.
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(2) The Family Service Tier. The Family Service Tier shall incorporate the
Universal Service Tier with 14 programmed video channels, a total of 21
channels of service combining access and local broadcasting with local
origination. In addition, this tier shall provide a community informa-
tion service and offer two premium services, a family- oriented mini -pay-
TV service and a comprehensive FM radio service.
(3) The Full Service Tier. The Full Service Tier shall provide 54 channels
which increases the Family Service Tier by incorporating distant sta-
tions, several satellite -fed services, additional local, origination
channels, additional premium channels and several customized alpha-
numeric services. Included in this tier shall be a sub -tier called
"expanded service" which shall have the same channel capacity and shall
include a converter and an interactive unit.
B. Locally .originated programming. Grantee shall provide at a minimum 23 local-
ly programmed channels.
C. Community Access and Programming.
(1) Grantee shall, at a minimum, comply with the community access and pro -
gramming plan of the Offering.
(2) Grantee shall provide upon system activation a community access and
programming staff of at least 22 persons, provided, however, that City
recognizes said staff as well as the entire community access and pro -
gramming plan of the Offering encompasses all of the systems of the
.cities then a party to a Joint Powers Agreement relating to System
(referred to herein as the "joint system ").
(3) The community access and programming staff shall:
(a) Identify community access needs;
(b) Train and consult with interested residents of City in the use of
the access equipment; and
(c) Promote the availability and uses of community access.
(4) Access facilities and equipment shall be provided at a minimum as set
forth in the Offering.
(5) Modulators shall be provided at 20 locations throughout the joint system
in addition to those which shall be provided to educational institu-
tions. Further, there shall be a mobile production unit and portable
video recorders as set forth in the Offering, all of which shall be
available upon System activation.
(6) Grantee shall cooperate in the development of an access nonprofit cor-
poration if determined to be needed by City. ,
(7) Grantee shall establish a citizen advisory board from City to,-provide
community advice and recommendations to Grantee relative to the commun-
ity access and programming of System.
D. Interactive Services.
System shall be fully activated to receive interactive services. Interactive
services shall at a minimum be provided as designated in the Offering.
Grantee warrants, represents and guarantees that no invasion of privacy can
occur in connection with any aspects of the services provided by System.
SECTION 2. INTERRUPTION OF SERVICE AND COMPLAINTS.
A. Whenever it is necessary to shut off or interrupt service, Grantee shall do
so during periods of minimum use of the System. Unless such interruption is
unforeseen and immediately necessary, Grantee shall give reasonable notice
thereof to subscribers. All costs incurred in repairing System and handling
complaints shall be paid by Grantee, and if service is interrupted or discon-
tinued for more than 48 hours, subscribers shall be credited pro rata for
such interruption. The cause for any such interruption shall be removed and
service restored as promptly as reasonably possible.
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B. Grantee shall maintain an office in the. Minneapolis /St. Paul metropolitan
area which shall be open during all usual business hours, have a listed local
telephone, and be so operated that complaints and requests for repairs or
adjustments may be received at any time, 7 days per week.
(1) Notice of this information shall be provided to all new subscribers at
time of subscription and to existing subscribers annually.
(2) Grantee shall not engage in the sale of television sets or provide other
television repair service, but in the event such service is required,
shall promptly notify subscriber of that need for service.
(3) All complaints by City, subscribers,_ or other persons regarding the
quality of service, equipment malfunction, billing disputes, and any
other matters relative to the System, shall be investigated and respond-
ed to by a service representative at the location of the complaint by
Grantee within 24 hours. If reasonably possible, Grantee shall rectify
the cause of all valid complaints. If a complaint is not rectified
within three days, the complainant may then file the complaint with
City.
(4) City and Grantee shall prepare and maintain a record of all complaints
made to them. If at any time after the filing of a complaint with City,
City determines, in its sole discretion, that the complaint represents a
violation of this Franchise, any law, ordinance or regulation, or repre-
sents a failure in the performance of Grantee pursuant to this Fran -
chise, City may, in addition to any other remedy available to it, issue
written notice specifying the nature of the complaint and ordering
Grantee to appear at the next regularly scheduled Council meeting. At
said Council meeting, Grantee shall explain its failure to rectify -the
complaint and show cause why the Council should not institute default
proceedings. Failure by Grantee to appear may result, at the sole
discretion of City, in the termination of this Franchise.
ARTICLE V.
CONSTRUCTION, INITIAL SERVICE AREA
LINE EXTENSION AND CONSTRUCTION STANDARDS
SECTION 1. INITIAL SERVICE AREA
A. Engineering and design shall be completed within one year after date of
granting of this Franchise and a significant amount of construction, in the
opinion of City, shall be completed within one year after Grantee's receipt
of all necessary governmental permits, licenses, certificates and authoriza-
tions.
B. Grantee shall provide service to all residences now or hereafter within the
initial service area as such area is identified on the map attached hereto as
Exhibit A and made a part hereof._,
C. Construction maps and schedules, included as a part of Exhibit A are also
hereby made a part of this Franchise. All construction within the initial
service area will be completed according to Exhibit A within eighteen months
[the "construction period "] after the date of issuance of the Certificate of
Confirmation by the Board.
D. The energized trunk cable shall be extended throughout the initial service
area within eighteen months after the date of issuance of the Certificate of
Confirmation by the Board. All persons and entities along the route of the
energized trunk cable who desire them will have individual drops installed
and activated within the same eighteen -month period.
E. Grantee shall give residents 30 days' advance notice of the commencement of
construction affecting their property, which notice shall fully explain how
the work will be carried out.
F. The requirements of paragraphs A, B, C and D may be waived by City only upon
the occurrence of unforeseen events or acts of God, but in no event shall the
construction period be greater than five years from commencement of construc-
tion.
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SECTION'2. LINE EXTENSION POLICY
Grantee's extension of service to those areas not included in the initial
service area shall be done pursuant to the following requirements:
A. Residences located outside the initial service area will be provided service
upon acceptance of a quote from Grantee. The quote shall not exceed the cost
to Grantee, calculated on a time and material basis, of extending the cable
and necessary cable equipment to service the residence.
B. Any nonresidential user requesting service will be provided service upon
acceptance of a quote from Grantee. The quote shall not exceed the cost to
Grantee, calculated on a time and material basis, of extending the cable and
necessary cable equipment to service said user.
SECTION 3. CONSTRUCTION TIMETABLE
A. Within 60 days after the granting of Franchise, Grantee shall apply for all
necessary permits, licenses, certificates and authorizations which are re-
quired in the conduct of its business, including, but not limited to, any
joint use attachment agreements, microwave carrier licenses, or any other
permits, licenses and authorizations to be granted by duly constituted regu-
latory agencies having jurisdiction over the operation of cable communication
systems, or their associated microwave transmission facilities. If after one
year from the commencement of Franchise term, Grantee has not received the
permits, licenses, certificates and authorizations described in this para-
graph, City may terminate this Franchise without regard to fault for delay in
obtaining such permits, licenses, certificates and authorizations.
B. Within 90 days after obtaining all necessary permits, licenses, certificates
and authorizations, Grantee shall give written notice thereof to City and
commence construction and installation of System.
C. Any delays in the construction timetable or commencement of construction
shall result in penalties as provided in this Franchise, and continued delays
may result in the termination of this Franchise and all rights and privileges
of Grantee hereunder.
(1) Grantee shall promptly notify City of all delays known or anticipated in
the construction of System.
(2) City may extend the time for beginning construction or may extend the
` construction timetable in the event Grantee, acting -in good faith,
experiences delays by reason of circumstances beyond its control.
SECTION 4. CONSTRUCTION STANDARDS
A. Grantee shall not open or disturb the surface of any streets or public prop-
erty without first obtaining a permit from City for which permit City may
impose a reasonable fee to be paid by Grantee. The lines, conduits, cables
and other property placed in the streets and public property pursuant to such
permit shall be located in such part of the street or public property as
shall be determined by City. Grantee shall, upon completion of any work
requiring the opening of any streets or public property, restore the same,
including the pavement and its grounds to as good a condition as formerly and
in a manner and quality approved by City, and shall exercise reasonable care
to maintain the same thereafter in good condition. Such work shall be per-
formed with diligence and due care, and if Grantee shall fail to perform the
work promptly, to remove all dirt and rubbish and to put the street or public
property back into the condition required hereby, City shall have the right
to put the streets or public property back into good condition at the expense
of Grantee. Grantee shall, upon demand, pay to City the cost -of such work
done or performed, together with an additional sum as liquidated damages to
be determined by City.
B. All wires, conduits, cable and other property and facilities of Grantee shall
be so located, constructed, installed and maintained as not to endanger or
unnecessarily interfere with the usual and customary trade, traffic and
travel upon, or other use of, the streets and public property of City.
Grantee shall keep and maintain all of its property in good condition, order
and repair so that the same shall not menace or endanger the life or property
of any person. City shall have the right to inspect and examine at all
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253
reasonable times and upon reasonable notice the property owned or used, in
part or in whole, by Grantee. Grantee shall keep accurate maps and records
of all of its wires, conduits, cables and other property and facilities
located, constructed and maintained in the City. Further, Grantee shall,
without charge, furnish copies of such maps and records from time to time as
requested by City.
C. All wires, conduits, cables and other property and facilities of Grantee,
shall be constructed and installed in an orderly and workmanline manner. All
wires, conduits and cables shall be installed, where possible, parallel with
electric and telephone lines. Multiple cable configurations shall be ar-
ranged in parallel and bundled with due respect for engineering considera-
tions.
D. Grantee shall at all times comply with all applicable laws, ordinances,
rules, regulations and codes, federal, state and local. In any event, the
installation, operation or maintenance of System shall not endanger of inter-
fere with the safety of persons or property in the City.
E. Whenever City shall undertake any public improvement which affects Grantee's
equipment or facilities, City shall, with due regard to reasonable working
(� conditions and with reasonable notice, direct Grantee to remove its wires,
0 conduits, cables and other property located in streets or public property.
Grantee shall relocate or protect its wires, conduits, cables and other prop-
erty at its own expense.
Q F. Grantee's plans for constructing its System, and the construction of the
Q System, shall, be in accordance with its Offering. However, Grantee shall
comply with the following minimum requirements:
(1) Grantee shall construct underground in any area where another line,
either electrical or telephone, has been installed underground.
(2) Grantee shall change from aerial to underground, at its own expense, in
any area where another line is hereafter changed from aerial to under-
ground.
(3) Grantee shall change from aerial to underground, without cost to City,
whenever requested by City, which request can be made for a certain area
or areas or for the entire System.
(4) To enable Grantee reasonable opportunity to change its wiring from
aerial to underground, and also to allow it to pre -wire all new sub-
divisions or new development areas, City shall provide Grantee with
written notice of the following, but in no event shall city have any
liability for failure to provide notice of the following:
(a) Any changes of which City has knowledge, or which City may order,
regarding a change from aerial to underground of any line (tele-
phone or electrical) within its boundaries.
(b) Any underground trenching that may be pending.
(c) New subdivisions and development. All of such subdividers or
developers shall be notified of the Franchise and the System.
(d) All Franchise changes affecting the wiring of the System.
SECTION 5. CONDITIONS ON USE
A. Grantee shall not place poles or other fixtures where the same will interfere
with any gas, electric or telephone fixture, water hydrant or main.
B. Grantee, at the request of any person holding a building moving permit and
with not less than five days advance notice, shall temporarily remove, raise
or lower its wires, conduits and cables. The expense of such temporary
removal, raising or lowering of wires, conduits and cables shall be paid by
person requesting the same, and Grantee shall have the authority to require
such payment in advance.
C. . Grantee shall have the authority; to the extent the City has authority to
grant the same, to trim trees upon or overhanging any street or public prop-
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erty so as to prevent the branches of such trees from coming in.contact with
the wires, conduits and cables of Grantee. All trimming shall be done under
the supervision and direction of City and at the expense of Grantee.
D. Nothing contained in this Franchise shall relieve any person from liability
arising out of the failure to exercise reasonable care to avoid injuring the
Grantee's facilities while performing any work connected with grading, re-
grading or changing the line of any street or public place or with the con-
struction or reconstruction of any sewer or water system.
` ARTICLE VI.
SYSTEM OPERATIONS
SECTION 1. INFORMATION AVAILABILITY
A. Throughout the term of this Franchise, Grantee shall maintain books and
records in accordance with normal and accepted bookkeeping and accounting
practices for the Cable Communications industry, and allow for inspection and
copying of them at reasonable times at its designated office. The books and
records to be maintained by Grantee shall include the following:
(1) A record of all requests for service;
(2) A record of all subscriber or other complaints, and the action taken;
(3) A file of all subscriber contracts;
(4) Grantee policies, procedures and company rules; and
(5) Financial records.
B. City shall give Grantee at least 24 hours notice before making inspections of
any books or records of Grantee.
C. Grantee shall file with City, at the time of its annual payment of the fran-
chise fee, as described in this Franchise, the following:
(1) A financial statement prepared by an independent certified public ac-
countant showing, in such detail as acceptable to City, the gross reve-
nues of Grantee for the preceding fiscal year.
(2) Current list of names and addresses of each officer and director and
other management personnel, and if a corporation, each shareholder
having stock ownership of three (3 %) percent or more, and if a partner -
ship, all general partners, and if a general partner is a corporation,
the foregoing information shall be given as to the corporate general
partner.
(3) A copy of each document filed with all federal, state and local agencies
during the preceding fiscal year not previously filed with City (each of
these filings shall be provided at the time the filing is made).
(4) A statement of its current billing practices.
(5) A current copy of its rules.
(b) A current copy of its subscriber service contract.
D. City, its agents and representatives shall have authority to arrange for and
conduct an audit of and copy the books and records of Grantee. Grantee shall
first be given five days notice of the audit request, the description of and
purpose for the audit, and description, to the best of City's ability, of the
books, records and documents it wants to review.
SECTION 2. SERVICE CONTRACT
A. Grantee shall receive approval from City of the form and content of the
service contract to be used by Grantee prior to entering into any such ser-
vice contracts with subscribers, and the Grantee shall make no changes in the
approved service contract without prior written approval of City. The sdr-
0
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255
vice contract shall include, at a minimum, a schedule of all rates and char-
ges, description of services, instructions on the use of the system, billing
and collection practices.
B. The.service contract shall further contain a statement as follows:
Grantee shall not, as to rates, charges, service facilities, rules,
regulations or in any other respect, make or grant any preference
or advantage to any person, nor subject any person to any prejudice
or disadvantage, provided, that nothing in this Franchise shall be
deemed to prohibit the establishment of special contracts or rates
for heads of houehold who are 62 years of age or older or homebound
persons, or for non - profit charitable organizations, bulk rate dis-
counts for multiple dwellings, or for promotional or other market-
ing activities.
C. Grantee shall have authority to promulgate such rules, regulations., terms and
conditions governing the conduct of its business as shall be reasonably
necessary to enable Grantee to exercise its rights and perform its obliga-
tions under this Franchise and to assure an'uninterrupted service to each and
all of its subscribers; provided, such rules, regulations, terms and condi-
tions shall not be in conflict with the provisions of the Franchise, ordi-
nances of City, and laws of the State of Minnesota or the United States.
D. Each subscriber shall be provided with instructions on filing complaints or
otherwise obtaining information or assistance from Grantee.
Q
Q E. All items described in this section shall be provided to each new subscriber
at the time a contract is entered or service begun, and to all existing sub-
scribers not less than once each year.
F. The term of a subscriber contract shall not be for more than 12 months dura-
tion unless after 12 months the contract may be terminated by the subscriber
at his option at any time, with no penalty to subscriber.
SECTION 3. SUBSCRIBER PRACTICES
A. There shall be no charge for disconnection of any installation or outlet. If
any subscriber fails to pay a properly due monthly subscriber fee, or any
other properly due fee or charge, Grantee may disconnect the subscriber's
service outlet, provided, however, that such disconnection shall not be
effected until after the later of (i) 60 days after the due date of said
delinquent fee or charge or (ii) ten days after delivery to subscriber of
written notice of the intent to disconnect. If a subscriber pays before
expiration of the later of (i) or (ii), Grantee shall not disconnect. After
disconnection, upon payment in full of the delinquent fee or charge and the
payment of a reconnection charge, Grantee shall promptly reinstate the sub-
scriber's cable service.
B. Refunds to subscribers shall be made or determined in the following manner:
(1) If Grantee fails, upon request by a subscriber, to provide any service
then being offered, Grantee shall promptly refund all deposits or ad-
vance charges paid for the service in question by said subscriber. This
provision does not alter Grantee's responsibility to subscribers under
any separate contractual agreement or relieve Grantee of any other
liability.
(2) If any subscriber terminates any monthly service because of failure of
Franchise to render the service in accordance with Franchise, Grantee
shall refund to such subscriber the proportionate share of the charges
paid by the subscriber for the services not received. This provision
does not relieve Grantee of liability established in other provisions of
this Franchise.
C. If any subscriber terminates any monthly service prior to the end of a pre-
paid period, a proportionate amount of any prepaid subscriber service fee,
using the number of days a.s a basis, shall be refunded to the subscriber by
Grantee.
D., Continued failure by Grantee to provide services required by this Franchise
may, in the discretion of City, be cause for imposition of a penalty or ter-
mination of this Franchise.
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SECTION 4. FRANCHISE FEE, RATES, CHARGES, CHANGES IN FEES AND PROCEDURES
A. Full Regulatory Power Reserved.
(1) All rates and charges shall be subject' to regulation by City, in a
manner to be provided by Council. In the absence of any City action
taken to exercise rate regulation, Grantee shall be subject to the rate
regulation provisions provided for herein, and of the State or its
agencies that may from time to time be applicable.
(2) In addition to the power to regulate rates and charges, City hereby
reserves the right to adopt regulations governing Grantee's collection
of advance charges and deposits, installation and reconnection charges,
policies and procedures, disconnection charges, policies and procedures,
and the availability of refunds.
(3) Cost for installing any part of the System will be a factor in the rate
only if such cost was incurred within City.
(4) The territory for rates applicable to System shall be City and all
Cities then parties to a joint powers agreement relating to the System.
B. Franchise Fee.
(1) Throughout the term of this Franchise, Grantee will pay to City, within
60 days after the end of each fiscal year of Grantee, an annual fee of
five (5 %) percent of all gross revenues. No payment will be allowed of
any fee that is different from five (5 %) percent, other than the filing
fee and payment required of the successful applicant as established to
recover the costs of franchising. Grantee agrees to support any waiver
required by the FCC for the established franchise fee. The annual fee
may be subject to renegotiation at such time as federal or state author-
ities no longer regulate the amount of the fee, but in no.event shall
the renegotiated fee be less than five percent (5 %).
(2) Payment will be made to City with an itemization of the gross, revenues
derived from the services in City.
C. Rates and Other Charges.
(1) Rates and charges charged by Grantee for monthly service and installa-
tion and other charges hereunder shall be uniform, fair and reasonable
and designed, to meet all necessary costs of service, including a fair
rate of return on the original cost, less depreciation, of the proper-
ties devoted to such service (without regard to any subsequent sale or
- transfer price or cost of such properties).
(2) For two years after commencement of construction of System, or until
completion of all construction required by Article V, Section 1 of this
{
Franchise, whichever is longer as determined by City, the maximum rates
shall be the specific rates of Grantee as included in Exhibit B, at-
tached hereto and made a part of this Franchise and known as Grantee
Schedule of Rates.
(3) Service requests for maintenance or repair of Grantee's property shall
be performed at no charge to a subscriber. If such maintenance or
repair is required as a result of damage caused by subscriber, Grantee
may charge as a maximum its direct costs for material and labor for
service calls to subscribers' homes.
(4) Rates for services not initially included in Exhibit B shall be estab-
lished only by amendment of this Franchise.
D. Rate Changes.
(1) No rate change shall be approved that would result in different rates or
charges for service to similarly situated subscribers in the rate terri-
tory, in the sole opinion of City.
(2) No rate or charge change will be approved unless all of the standards
for review have been considered and evaluated and determinations have
been made, all pursuant to this Franchise.
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(3) The standards for reviewing a proposed rate change will include at :Least
the following:
(a) The ability of the Grantee to render System services and to derive
a reasonable profit therefrom under the existing rate schedule and
proposed rate schedule;
(b) The revenues and profits derived from System services;
(c) Tax benefits received by Grantee, its partners or shareholders, as
the result of their investment in the System;
(d) Cash flow derived from System services;
(e) The efficiency of Grantee;
(f) The quality of the service offered by Grantee;
(g) The original cost of the System, less depreciation;
(h) A fair rate of return with respect to investments having similar
(� risks to that of providing cable communication services;
O (i) The extent to which Grantee has adhered to the terms of this Fran-
chise;
Q (j) Fairness to residents and subscribers;
Q
(k) Capital expenditures by Grantee in providing updated technology and
service to subscribers;
(1) The extent to which Grantee has then provided service to schools,
hospitals, libraries, publicly owned or leased buildings and simi-
lar institutions within City;
(m) Such other factors as City may deem relevant.
(4) The procedures to be followed in changing a rate or charge shall include
at least the following:
(a) An application for a rate change will be submitted to City and a
copy filed with the Board.
(b) The application shall be supported by statistical and other proof
indicating that the existing rate or charge is inadequate and
unreasonable and that the proposed increases are required to enable
Grantee to render service to fulfill its obligations under this
Franchise and to derive a reasonable profit therefrom.
(c) The application shall include current information and financial
information with at least the following:
1. Balance sheet;
2. Income statement;
3. Statement of sources and applications of funds;
4. Detailed supporting schedules of expenses, income, assets and
other items as may be required by City;
S. Statement of current and projected subscribers;
6. A current list of rates and charges of Grantee applicable to
systems owned or operated by its parent corporation or other
subsidiaries or affiliates of its parent corporation at other
locations;
7. A current list of rates and charges for other systems in the
seven county Zletropolitan area;
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8. Cash flow derived from System services since the commencement
of this Franchise; and
9. Statement of tax benefits received by Grantee, its partners or
shareholders, as a result of their investment in System.
(d) City will notify Grantee and Board and schedule a public hearing on
the request within two weeks from the date of receipt of the appli-
cation and the determination by City of its completeness. Grantee
will notify the public through providing notice for one week, each
day between 7:00 p.m. and 9:00 p.m. on two channels of the date,
place and time of the hearing. City will publish notice ten days
prior to hearing in its official newspaper.
(e) After closing the public hearing, City will have 31 days within
which to make its determination. Any approved change in rates or
charges shall become effective upon the date determined by City.
(f) If City fails to approve the requested change or rates or charges
within the 31 day period, Grantee may appeal pursuant to the then
applicable procedures of the Board.
(g) City may utilize a rate consultant to advise it on proposed rate
changes and to assist it in maintaining uniform rates within the
rate territory. A rate consultant may be any person who has suf-
ficient background and experience, in the sole opinion of City, to
properly evaluate and analyze rates and charges.
(h) All costs for the review of an application for a rate or charge
change shall be paid by Grantee upon demand of City. The costs
shall include, but not be limited to, attorneys' fees, and the
reasonable value of services (as determined by City) rendered by
City or any city employees, agents or representatives of City.
(i) Any time limit may be waived only if City and Grantee consent.
Periodic Reviews and Renegotiation.
The field of cable communications is a relatively new and rapidly changing
one which shall no doubt see many regulatory, technical, financial, marketing
and legal changes during the term of the Franchise period. Therefore, in
order to provide for a maximum degree of flexibility in this Franchise, and
to help achieve a continued advanced and modern system, the following renego-
tiation provisions will apply:
(1) City reserves the right to adopt rules and regulations controlling the
procedures and subjects for periodic reviews and renegotiation. In the
absence of any City action taken to exercise these rights, Grantee shall
be subject to at least the procedures and subjects described in this
section.
(2) City may require, at its sole discretion, System performance evaluation
sessions at any time during the term of this Franchise or as required by
federal or state law. Such evaluation sessions shall be conducted by
City within 30 days of the third, fifth and tenth anniversary dates of
the effective date of acceptance of this Franchise by Grantee.
(3) All evaluation sessions shall be open to the public and notice of ses-
sions published in the same way as a legal notice. Grantee shall notify
its subscribers of all evaluation sessions by announcement on at least
two channels of the System between the hours of 7:00 p.m. and 9:00 p.m.
for five consecutive days preceding each session.
(4) Topics which may be discussed at any evaluation session may include, but
not be limited to, service" rate structures; franchise fee; penalties,
free or discounted services; application of new technologies; system
performance; services provided; programming offered; community access;
local origination; customer complaints; privacy; amendments to this
Ordinance; judicial, Board and FCC rulings; line extension policies; and
Grantee or.City rules.
(5) During a review and evaluation by City, Grantee shall fully cooperate
with City and shall provide without cost such information and documents
as City may request to reasonably perform the service.
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259
(6) If at any time during its review, City determines that reasonable evi-
dence exists of inadequate System performance, it may require Grantee to
perform tests and analyses directed toward such suspected inadequacies
at the Grantee's own expense. Grantee shall fully cooperate with City
in performing such testing and shall prepare results and a report, if
requested, within 30 days after notice. The report prepared by Grantee
shall include at least:
(a) A description of the problem in System performance which precipi-
tated the special tests.
(b) What System component was tested.
(c) The equipment used and procedures employed in testing.
(d) The method, if any, by which such System performance problem was
resolved.
(e) Any other information pertinent to said tests and analyses which
may be required by City, or determined when the test is performed.
N City may require that tests be supervised at Grantee's expense by a
O consultant designated by City. The consultant shall sign all records of
special tests and forward to City such records with a report interpre-
ting the- results of the tests and recommending actions to be taken.
Q (7) As a result of a periodic review or evaluation session, City may require
Q Grantee to modify the System or to provide additional services. Grantee
will comply with any such requirement of the City unless, in the sole
opinion of City, technology does not permit it, or Grantee establishes
to the satisfaction of City that the cost would prohibit the implementa-
tion of the modification or the additional services.
SECTION 5. FRANCHISE RENEWAL
A. Grantee may apply for renewal of this Franchise not earlier than 13 months
prior to the expiration of this Franchise on forms provided by City. The
-renegotiation period shall commence not less than 12 months before the expi-
ration of the Franchise Term.
B. Grantee may be approved, and this Franchise or modification to it may be
renewed or extended, by City in accordance with the then existing rules of
the FCC, the Board; the City and all other applicable laws, ordinances, rules
or regulations.
C. Nothing in this Franchise shall be construed to require renewal or extension
of this Franchise.
D. City shall conduct an investigation and evaluation of the Grantee and the
System and the renewal proposal. This investigation and evaluation shall be
completed by City within six months after receipt of the application and
determination by City of its completeness.
E. Renewal of this Franchise may not be for more than 15 years, unless otherwise
permitted by federal or state law.
ARTICLE VII.
(Reserved)
ARTICLE VIII.
INDEMNIFICATION, INSURANCE, LETTER OF
CREDIT AND BOND
SECTION 1. GENERAL
A. All rights of City pursuant to indemnification, insurance, letter of credit
or bond, as provided for by this Franchise, are in addition to all other
rights the City may-have under this Franchise or any other ordinance, rule,
regulation or law.
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260
B. The exercise or failure to exercise by City of any rights pursuant to any
section of this Franchise shall not affect in any way the right of City to
subsequently exercise any such rights or any other right of City under this
Franchise or any other ordinance, rule, regulation or law.
SECTION 2. INDEMNIFICATION AND INSURANCE
A. Grantee shall fully indemnify, defend and hold harmless, City, its officers,
boards, commissions, elected officials, agents and employees against any and
all costs, damage, expense, claims, suits, actions, liability and judgments
for damages, including but not limited to, expenses for legal fees, whether
suit be brought or not, and disbursements and liabilities incurred by City in
connection with:
(1)
Damage to persons or property, in any way arising out of or through the
acts or omissions of Grantee or City, their respective servants, offi-
cials, agents or employees or to which Grantee's or City's negligence or
that of their respective servants, agents, officials or employees shall
in any way contribute;
(2)
Arising out of any claim for invasion of the right of privacy, for
defamation of any person, firm or corporation, or 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, except
claims because of City's own programming;
(3)
Arising out of Grantee's failure to comply with the provisions of this
Franchise, any federal, state or local law, ordinance or regulation
applicable to Grantee or the System; and
(4)
Any and all claims which Grantee may now or hereafter have or claim to
have against City, its 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 in-
come, 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 servants, agents, employees or officials.
B. If suit be brought or threatened against City, either independently or joint-
ly with Grantee, or with any other person or municipality, Grantee, upon
notice given by City, shall defend City at the cost of Grantee, and if final
judgment is obtained against City, either independently or jointly with
Grantee, or any other defendants, Grantee shall indemnify City and pay such
judgment with all costs and satisfy and discharge the same.
C. City reserves the right to cooperate with Grantee and participate in the
defense of any litigation either through intervention or otherwise. Grantee
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, a_nd the
reasonable value of services (as determined by City), rendered by City, or any
employees, agents or representatives of City.
SECTION 3. INSURANCE
A. Grantee shall maintain liability insurance covering its obligations of indem-
nification provided for in or as a result of the exercise of this Franchise
covering both the City and Grantee and shall maintain said insurance during
the entire term of this Franchise in the minimum amount of:
(1) $500,000 for property damage to any one person;
(2) $2,000,000 for property damage in any one act or occurrence;
(3) $1,000,000 for personal injury to any one person; and
(4) $2,000,000 for personal injury in any one act or occurrence.
B. Such insurance shall be with a company acceptable to City and shall otherwise
be in form and substance acceptable to City. Such insurance policy with
written evidence of payment of required premiums shall be filed and main-
tained with City during the term of the Franchise. The above minimum amounts
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261
shall be changed from time to time by Grantee as requested by City. Grantee
shall immediately give notice to City of any threatened or pending litigation
affecting this insurance.
C. Neither the provisions of this section nor any damages recovered by City
shall be construed to, or shall, limit the liability of Grantee.
D. No recovery by City of any sum by reason of the Letter of Credit or Bond
required in this Franchise shall be any limitation upon the liability of
Grantee to City under the terms of this section, except that the sum so
received by City from such Letter of Credit or Bond shall be deducted from a
recovery under this section, if for the same act or occurrence.
E. All insurance policies maintained pursuant to this Franchise shall contain
the following endorsement:
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.
SECTION 4. LETTER OF CREDIT
A. At the time of acceptance of this Franchise, Grantee shall deliver to City an
irrevocable and unconditional Letter of Credit, in form and substance accep-
table to City, from a National or State bank approved by City, in the amount
of $50,000.
B. The Letter of Credit shall provide that funds will be paid to City, upon
written demand of City, and in an amount solely determined by City in payment
for penalties charged pursuant to paragraph C of this section, in payment for
any monies owned by Grantee pursuant to its obligations under this Franchise,
or in payment for any damage incurred as a result of any acts or omissions by
Grantee pursuant to this Franchise.
C. In addition to recovery of any monies owed by Grantee to City or damages to
City as a result of any acts or omissions by Grantee pursuant to the Fran-
chise, City in its sole discretion may charge to and collect from the Letter
of Credit the following penalties:
(1) For failure to complete System construction in accordance with Grantee's
initial service area plan, unless City approves the delay, the penalty
shall be Two Hundred Dollars ($200.00) per day for each day, or part
thereof, such failure occurs or continues.
(2) For failure to provide data, documents, reports or information or to
cooperate with City during an application process or System review, the
penalty shall be Fifty Dollars ($50.00) per day for each day, or part
thereof, such failure occurs or continues.
(3) For failure to" comply with any of the provisions of this Franchise for
which a penalty is not otherwise specifically provided pursuant to this
Paragraph C, the penalty shall be Fifty Dollars ($50.00) per day for
each day, or part thereof, such failure occurs or continues.
(4) For failure to test, analyze and report on the performance of the System
following a request by City, the penalty shall be Fifty Dollars ($50.00)
per day for each day, or part thereof, such failure occurs or continues.
(5) For failure by Grantee to modify the System or to provide additional
services within 45 days after required by City following a periodic
review or renegotiation session the penalty shall be Two Hundred Dollars
($200.00) per day for each day, or part thereof, such failure occurs or
continues.
(6) Forty -five days following notice from City of a failure of Grantee to
comply with construction, operation or maintenance standards, the penal-
ty shall be Two Hundred Dollars ($200.00) per day for each day, or part
thereof, such failure occurs or continues.
(7) For failure to provide the services Grantee has proposed, including but
not limited to the implementation and the utilization of the access
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channels and the making available for use of the equipment and other
facilities to City, the penalty shall be One Hundred Dollars ($100.00)
per day for each day, or part thereof, such failure occurs or continues.
(8) Each violation of any provision of this Franchise shall be considered a
separate violation for which a separate penalty can be imposed.
D. Exclusive of the contractual penalties set out above in this section, a
violation of any provision of this Franchise is a misdemeanor.
E. Whenever City finds that Grantee has violated one or more terms, conditions
or provisions of this Franchise, a written notice shall be given to Grantee
informing it of such violation. At any time after three days following
notice, City may draw from the Letter of Credit all penalties and other
monies due City.
F. Whenever a penalty has been assessed, Grantee may, within ten days of notice,
notify City that there is a dispute as to whether a violation or failure has,
in fact, occurred. Such notice by Grantee to City shall specify with partic-
ularity the matters disputed by Grantee.
(1) City shall hear Grantee's dispute at the next regularly scheduled Coun-
cil meeting. City shall supplement the Council decision with written
findings of fact.
(2) Upon a determination by City that no violation has taken place, City
shall refund to Grantee without interest all monies drawn from the
Letter of Credit by reason of the alleged violation, less all costs and
attorneys' fees incurred by City as a result of Grantee's appeal.
G. If said Letter of Credit or any subsequent Letter of Credit delivered pursu-
ant hereto expires prior to 15 months after the expiration of the term of
this Franchise, it shall be renewed or replaced during the term of this
Franchise to provide that it will not expire earlier than 15 months after the
expiration of this Franchise. The renewed or replaced Letter of Credit shall
be on the same form and with a bank authorized herein and for the full amount
stated in paragraph A of this section.
H. If City draws upon the Letter of Credit, or any subsequent Letter of Credit
delivered pursuant hereto, in whole or in part, Grantee shall replace the
same within three days and shall deliver to City a like replacement Letter of
Credit for the full amount stated in Paragraph A of this section as a substi-
tution of the previous-Letter of Credit.
I. If any Letter of Credit is not so replaced, City may draw on said Letter of
Credit for the whole amount thereof and hold the proceeds, without interest,
and use the proceeds to pay costs incurred by City in performing and paying
for Any or all of the obligations, duties and responsibilities, of Grantee
under this Franchise that are not performed or paid for by Grantee pursuant
hereto, including attorneys' fees incurred by the City in so performing and
paying. The failure to so replace any Letter of Credit may also, at the
option of City, be deemed a default by Grantee under this Franchise. The
drawing on the Letter of Credit by City, and use of the money so obtained for
payment or performance of the obligations, duties and responsibilities of
Grantee which are in default, shall not be a waiver or release of such de-
fault.
J. The collection by City of any damages, monies or penalties from the Letter of
Credit shall not affect any other right or remedy available to City, nor
.shall any act, or failure to act, by City pursuant to the Letter of Credit,
be deemed a waiver of any right of City pursuant to this Franchise or other-
wise.
SECTION 5. BONDS
A. At the commencement of this Franchise, and at all times thereafter until
Grantee has liquidated all of its obligations with City, Grantee shall main-
tain with City a bond in the sum of Three Hundred Thousand Dollars
($300,000.00) in such form and with such sureties as shall be acceptable to
City, conditioned upon the faithful performance of Grantee of this Franchise
and the acceptance hereof given by Grantee and upon the further condition
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263
that in the event Grantee shall fail to comply with any law, ordinance or
regulation, there shall: be recoverable jointly and severally from the princi-
pal and surety of the bond, any damages, or losses suffered by City as a
result, including the full amount of any compensation, indemnification or
cost of removal of any property of Grantee, including a reasonable allowance
for attorneys' fees and costs (with interest at two (2 ° /,) percent in excess of
the then prime rate), up to the full amount of the bond, and which bond shall
further guarantee payment by Grantee of all claims and liens against City or
any public property, and taxes due to City, which arise by reason of the
construction, operation, maintenance or use of the System.
B. The rights reserved by City with respect to the bond are in addition to all
other rights the City may have under this Franchise or any other law.
C. City may, in its sole.discretion, reduce the amount of the bond.
ARTICLE IX.
DEFAULT
N SECTION 1. NOTICE AND DEFAULT
O A. City shall give written notice of default to Grantee if City, in its sole
CD discretion, determines that Grantee has:
(1) Violated any provision of this Franchise or the acceptance hereof, or
Q any rule, order, regulation or determination of the City, state or
Q federal government, not in conflict with this Franchise;
(2) Attempted to evade any provision of this Franchise or the acceptance
hereof;
(3) Practiced any fraud or deceit upon City or subscribers;
(4) Made a material misrepresentation of fact in the application for or
negotiation of the Franchise; or
(5) Incurred a 12 month or more delay in the construction schedule.
B. If Grantee fails to cure such default within 30 days after the giving of such
notice (or if such default is of such a character as to require more than 30
days.within which to cure the same, and Grantee fails to commence to cure the
same within said 30 day period and thereafter fails to use reasonable dili-
gence, in City's sole opinion, to cure such default as soon as possible),
then, and in any event, such default shall be a substantial breach and City,
at its option, may elect to either cure the default or terminate this Fran-
chise as follows:
(1) City may cure any default for the account at at the cost and expense of
Grantee and all sums so expended by City, including attorneys' fees in-
curred in curing such default, whether suit be brought or not, with
interest thereon at a rate per annum two (2 %) percent in excess of the
then prime rate, shall be paid be Grantee to City, upon demand, and
failure to so pay upon demand likewise may be deemed by City to be a
default under this Franchise.
(2) City may place the issue of revocation and termination of the Franchise
before the Council at a regular meeting of the City Council. If City
decides there is cause or reason to terminate, the following procedure
shall be followed:
(a) City shall provide Grantee with a written notice of the reason or
cause for proposed termination and shall allow Grantee a minimum of
30 days subsequent to receipt of the notice in which to correct the
default.
(b) Grantee shall be provided with an opportunity to be heard at a
public hearing prior to any decision to terminate this Franchise.
(c) In the event that City determines to terminate this Franchise, the
Grantee shall have a period of 30 days, beginning the day next
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following written notice to Grantee of such decision, within which
to .file an appeal with the Board, pursuant to the then applicable
statutes and procedures of the Board. During such 30 day period
and until the Board determines the appeal, if an appeal is taken,
the Franchise shall remain in full force and effect, unless the
term thereof sooner expires.
(d) If Board approves of the action of City, the Franchise shall termi-
nate immediately. If Board disapproves of the action of City, the
Franchise shall remain in full force and effect for the full term
hereof unless sooner terminated in accordance with the provisions
hereof, or applicable law or rules of Board.
SECTION 2. CROSS DEFAULT
A. If Grantee should be in default under any of the terms or provisions of a
franchise, or acceptance thereof, of another city (then a party to a Joint
Powers Agreement relating to the System), at City's option, to be exercised
by notice to Grantee given at any time while such default exists, such de-
fault may be deemed by City a default by Grantee under this Franchise.
B. This section, or any other section or provision of this Franchise, shall not
be deemed to incorporate into this Franchise by reference any other fran-
chises.
ARTICLE X.
FORECLOSURE, RECEIVERSHIP AND ABANDONMENT
SECTION 1. FORECLOSURE
Upon the foreclosure or other judicial sale of all or a part of the System,
or upon the termination of any lease covering all or part of the System, Grantee
shall notify City of such fact and such notification shall be treated as a notifi-
cation that a change in control of Grantee has taken place, and the provisions of
this Franchise governing the consent to transfer or change in ownership shall
apply without regard to how such transfer or change in ownership occurred.,
SECTION 2. RECEIVERSHIP
City shall have the right to cancel this Franchise 120 days after the ap-
pointment of a receiver or trustee to take over and conduct the business of Gran-
tee, whether in receivership, reorganization, bankruptcy or other action or pro-
ceeding, unless such receivership or trusteeship shall have been vacated prior to
the expiration of said 120 days, or unless:
(a) Within 120 days after his election or appointment, such-receiver or
trustee shall have fully complied with all the provisions of this Fran-
chise and remedied all defaults hereunder; and
(b) Such receiver or trustee, within said 120 days, shall have"
e - executed an
agreement with City, duly approved by the Court having jurisdiction in
the premises, whereby such receiver or trustee assumes and agrees to be
bound by each and every provision of this Franchise.
SECTION 3. ABANDONMENT
Grantee may not abandon any portion of System without having given not less
than three months prior notice to City and Board. Further, Grantee may not aban-
don any portion of System without compensating City for damages resulting from the
abandonment. The amount of damages resulting from abandonment and due City shall
be determined in the sole discretion of City. An abandonment of any portion of
the System as determined in the sole discretion of City shall be a cause for
termination of this Franchise by City.
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ARTICLE XI.
PURCHASE OF SYSTEM
SECTION 1. GENERAL
265
A. If at any time Grantee receives a bona fide purchase offer for the System
which Grantee is willing to accept, a complete copy of such offer shall
promptly be given to City and City shall have the right to purchase the
System according to the terms of that offer. City shall exercise such right
by submitting to Grantee, within six months after City's actual receipt of
the bona fide offer, notice that City desires to purchase the System pursuant
to said offer. If City does not exercise such right the System may be sold,
but only on the terms submitted to City. If any changes, are made in the
purchase offer given to City, such purchase offer, as so changed, shall again
be given to City and City shall have six months from actual receipt by City
of the offer, as changed, within which to exercise its right to purchase the
System pursuant to the offer, as changed, all as above provided. If City
does not exercise its right to purchase the System pursuant to any offer
given to City pursuant to this paragraph, and the System is not sold to the
buyer and on the terms set out in the offer given to City, then the right of
CV City to purchase the System shall continue, and all subsequent purchase
offers shall be given to City pursuant to this paragraph. Also, the City's
Q right to purchase pursuant to this paragraph shall survive every sale to a
CD buyer and shall continue and be binding upon every buyer of the System.
B. Upon forfeiture, revocation or termination of this Franchise, or at the
normal expiration of the Franchise term, City shall have the right to pur-
chase the System. Such right shall be exercised upon written notice to
Grantee given within six months after the occurrence of any such event.
SECTION 2. PROCEDURES
In the event City elects to exercise its right to purchase the System as
provided in Section 1B of this Article, the following shall then apply:
A. City and Grantee shall negotiate all terms and conditions of the purchase of
the System.
B. If City and Grantee cannot agree upon the terms and conditions of the pur-
chase, City shall have the right to proceed to arbitration. Arbitration
shall commence and proceed according to applicable Minnesota law except as
follows:
(1) The parties shall, within 15 days of City's decision to proceed to
arbitration, appoint one arbitrator each who is experienced and knowl-
edgeable in the purchase and valuation of business property. Arbi-
trators shall each agree upon the selection of a third arbitrator,
similarly qualified, within 15, days after appointment of the second
arbitrator.
(2) Within 30 days after appointment of all arbitrators and upon ten days
written notice to parties, the arbitrators shall commence a hearing on
the terms and conditions of the purchase in dispute.
(3) The hearing shall be recorded and may be transcribed at the request of
either party. All hearing proceedings, debates and deliberations shall
be open to the public and at such times and places as contained in the
notice or as thereafter publicly stated in the order to adjourn.
(4) The arbitration panel shall be required to determine the purchase price
of the System according to the standards established in paragraph C
below.
(5) At the close of the hearings and within 30 days, the arbitrators shall
prepare written findings and make a written decision agreed upon by a
majority of the arbitrators which shall be served by mail upon City and
Grantee.
(6) The decision of a majority of the arbitrators shall be binding upon both
parties except that City may, in its sole discretion and without any
penalty or cost to City of any kind, withdraw its offer to purchase
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within 90 days of receipt of the final decision of a majority' of the
arbitrators.
(7) Either party may seek judicial relief to the extent authorized under
Minnesota Statutes, M.S.A. §572.09 and §572.19 as the sme may be amend-
ed, and, in addition, under the following circumstances:
(a) A party fails to select an arbitrator;
(b) The arbitrators fail to select a third arbitrator;
(c) One or more arbitrator is unqualified;
(d) Designated time limits have been exceeded;
(e) The arbitrators have not proceeded expeditiously; or
(f) Based upon the record the arbitrators abused their discretion..
(8) In the event a Court of competent jurisdiction determines the arbitra-
tors have abused their discretion, it may order the arbitration proce-
dure repeated and issue findings, orders and directions, with costs of
suit to be awarded to the prevailing party.
(9) Cost of arbitration shall be borne equally.
C. The purchase price of the System to be paid by City shall be the cost less
depreciation (as shown on the books and records of Grantee) or market value,
whichever is less. Goodwill shall not be included in the purchase price of
the System.
D. Grantee expressly waives its rights, if any, to relocation costs that might
otherwise be provided by law.
E. The date of valuation shall be no earlier than the day following the date of
revocation, forfeiture, expiration or termination of this Franchise and no
later than the date City makes a written offer for the System.
ARTICLE XII.
MISCELLANEOUS
SECTION 1. TRANSFER OF OWNERSHIP OR CONTROL
A. This Franchise shall not be assigned or transferred, either in whole or in
part, or leased, sublet or mortgaged in any manner, nor shall title thereto,
either legal or equitable or any right, interest or property therein, pass to
or vest in any person without the prior written consent of City, which con-
sent shall not be unreasonably withheld. Further, Grantee shall not sell or
transfer any stock or ownership interest so as to create a new controlling
interest except with the consent of City, which consent shall not be unrea-
sonably withheld. The transfers described in this paragraph shall, in the
sole discretion of City, be considered sale or transfer of Franchise within
the meaning and intent in the following paragraph.
B. Any sale or transfer of Franchise, including a sale or transfer by means of a
fundamental corporate change, requires the written approval of City. Any
sale or transfer of Franchise shall be subject to the provisions of Board
"rules prohibiting certain ownership. The parties to the sale or transfer of
Franchise shall make a written request to City for its consent. City shall
reply in writing within 30 days of actual receipt of the request and shall
indicate its approval of the request or its determination that a public
hearing is necessary. City shall conduct a public hearing on the -request
within 30 days of such determination if it determines that a sale or transfer
of Franchise may adversely affect the Grantee's subscribers.
C. Unless otherwise already provided for by local law, notice of any such hear-
ing shall be given 14 days prior to the hearing by publishing notice thereof
once in a newspaper of general circulation in -the City. The notice shall
contain the date, time and place of the hearing and shall briefly state the
substance of the action to be considered by City. Within 30 days after the
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261
public hearing, City shall approve or deny in writing the sale or transfer
request.
D. Any sale or transfer of Franchise, including a sale or transfer by means of a
fundamental corporate change, requires notification to the Board by City.
The notification shall be accompanied by the written certification of the
transferee that it meets all of the requirements established by City for
original Grantee including but not limited to technical ability and financial
stability. City shall cause to be sent to the Board a copy of all public
documents related to sale or transfer of the Franchise.
E. The parties to the sale or transfer of only this Franchise, without the
inclusion of the System in which at least substantial construction has com-
menced, shall be required to establish to the sole satisfaction of City that
the sale or transfer of only this Franchise is in the public interest.
F. For purposes of this section, fundamental corporate change means the sale or
transfer of a controlling interest in the stock of a corporation or the sale
or transfer of all or a majority of a corporation's assets, merger (including
a parent and its subsidiary corporation), consolidation or creation of a
subsidiary corporation. For the purposes of this Section, fundamental part-
nership 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 partnership, change
from a limited to a general partnership, incorporation of a partnership, or
change in the control of a partnership.
G. The word "control ", as used herein, is not limited to major stockholders, but
includes actual working control in whatever manner exercised. As a minimum,
Q "control ", as used herein, means a legal or beneficial interest (even though
actual working control does not exist) of at least five (5 %) percent or more.
Every change, transfer or acquisition of control of Grantee shall make the
Franchise subject to cancellation unless and until City shall have consented
in writing thereto, which consent shall not be unreasonably withheld. For
the purpose of determining whether it shall consent to such change, transfer
or acquisition of control, City may inquire into the qualifications of the
prospectice controlling party, and Grantee shall assist City in any such
inquiry and pay all costs incurred by City in so inquiring, including City
staff time at a value determined by City.
H. In the absence of extraordinary circumstances, City will not approve any
transfer or assignment of the Franchise prior to substantial completion of
construction of System, as determined solely by City.
I. In no event shall a transfer or assignment of ownership or control be ap-
proved without tranferee becoming a signator to this Franchise.
J. Any transferee shall be subordinate to any right, title or interest of City.
SECTION 2. REMOVAL AFTER TERMINATION OR REVOCATION
A. At the expiration of the term for which this Franchise is granted, or upon
its revocation or termination, as provided for herein, City shall have the
right to require Grantee to remove, at Grantee's expense, all or any portion
of the System from all streets and public property within City. In so remov-
ing the System, Grantee 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 Grantee's removal
of the System, and without affecting, altering or disturbing in any way
electric, telephone or other utility cables, wires 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, In-
demnity and Penalty provisions'of this Franchise shall remain in full force
and effect during the entire term of removal.
B. If, in the sole discretion of City, Grantee has failed to commence removal of
System, or such part thereof as was designated by City, within 30 days after
written notice of City's demand for removal is given,. or if Grantee 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 one
of the following options:
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(1) Declare all right, title and interest to the System to be in City with
all rights of ownership including, but not limited to, the right to
operate the System or transfer the System to another for operation by
it.
(2) Declare the System abandoned and cause the System or such part thereof,
as City shall designate, to be removed at no cost to City. The cost of
said removal shall be recoverable from the Letter of Credit, Bonds,
Insurance, Indemnification and Penalties provided for in this Franchise,
or from Grantee directly as a liquidated damage.
C. Any portion of the System not designated by City for removal shall belong to
and become the property of City without payment to Grantee and Grantee shall
execute and deliver such documents, as City shall request, in form and sub-
stance acceptable to City, to evidence such ownership by City.
SECTION 3. WORK PERFORMED BY OTHERS
A. Grantee shall give notice to City specifying the names and addresses of any
other entity, other than Grantee, which performs services pursuant to this
Franchise, provided, however, that all provisions of this Franchise remain
the responsibility of Grantee. w
B. All provisions of this Franchise shall apply to any subcontractor or others
performing any work or services pursuant to the provisions of this Franchise.
SECTION 4. INTEREST RATE
r
For purposes of this Franchise, prime rate shall mean the interest charged
from time to time by the First National Bank of Minneapolis for 90 day unsecured
loans to commercial borrowers of the highest credit rating.
SECTION 5. GENERAL PROVISION ON RIGHTS AND REPIEDIES
A. All rights and remedies given to City by this Franchise shall be in addition
to and cumulative with any and all other rights or remedies, existing or
implied, now or hereafter available to City at law or in equity, and such
rights and remedies shall not be exclusive, but each and every right and
remedy specifically given by this Franchise or otherwise existing or given
may be exercised from time to time and as often and in such order as may be
deemed expedient by City, and the exercise of one or more rights or remedies
shall not be deemed a waiver of the right to exercise at the same time or
thereafter any other right or remedy. No delay or omission of City in the
exercise of any right or remedy shall impair any such right or remedy, nor
shall any such delay or omission be construed to be a waiver of or acquies-
cence to any default. The exercise of any such right or remedy by City shall
not release Grantee from its obligations, or any liability, under this Fran-
chise.
B. In addition to all other.remedies granted or available to City, City shall be
entitled to the restraint by injunction of the violation, or attempted or
threatened violation, by Grantee of any terms or provisions of this Fran-
chise, or to a decree compelling performance by Grantee of any term or provi-
sion of this Franchise.
SECTION b. APPLICABLE LAWS AND COURT DECISIONS: SEVERABILITY
A. Grantee and City shall, at all times, comply with all laws, ordinances and
regulations of federal, state and City government relating to System and this
Franchise.
B. If any law, ordinance or regulation shall require or permit Grantee to per-
form any service or shall prohibit Grantee from performing any service which
may be in conflict with the terms of this Franchise, then as soon as possible
following knowledge thereof, Grantee shall notify City of the point of con-
flict believed to exist between such law, ordinance or regulation.
C. If City determines that a material provision of this Franchise is affected by
such law, ordinance or regulation, City shall-have the right to amend, modi-
fy, alter or repeal any of the provisions of,this Franchise to such reason-
able extent as may be necessary to carry out the intent and purpose of this
Franchise, and Grantee hereby agrees to such amendment, modification, altera-
tion or repeal of this Franchise.
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D. To `the extent any provision of the Offering or rules of Board are not speci-
fically set out in this Franchise or not validly incorporated herein by
reference, City from time to time may amend this Franchise to include such
provision effective as of the date of commencement of the Franchise term or
any such rule effective as of the date of commencement of the Franchise term
or adoption of the rule, whichever is later. Grantee, by acceptance of this
Franchise, consents to and agrees to be bound by any such amendments.
E. City reserves the right to revoke this Franchise and any right or privilege
of Grantee hereunder without incurring any obligation or liability to Grantee
if any provision of this Franchise shall be finally adjudged by a court of
law invalid or unenforceable, and if City further finds that such provision
constitutes at that time a consideration material to the continuance of the
Franchise herein granted.
F. If any term, condition or provision of this Franchise or the application
thereof to any person or circumstance shall, to any extent, be held to be
invalid or unenforceable, the remainder hereof and the application of such
term, condition and provision to persons or circumstances other than those as
to whom it shall be held invalid or unenforceable shall not be affected
thereby, and this Franchise and all the terms, provisions and conditions
N hereof shall, in all other respects, continue to be effective and to be
Q complied with.
SECTION 7. GRANTEE WILL NOT CONTEST VALIDITY OF FRANCHISE
d Grantee agrees that it will not, at any time, set up against City in any
Q claim or proceeding, any condition or term of this Franchise as unreasonable,
arbitrary, void or that City had no power or authority to make such term or condi-
tion, but shall be required to accept the validity of the terms and conditions of
this Franchise in their entirety.
SECTION 8. INTERPRETATION BY CITY OF FRANCHISE
In case of any dispute or question as to the meaning, interpretation or
application of any term, provision or condition of this Franchise, the Council of
City in its sole discretion shall resolve such dispute or question.
ARTICLE XIII.
ADMINISTRATION AND ADVISORY BODY
SECTION 1. ADMINISTRATOR
The City Manager or the City Manager's designee shall be responsible for the
continuing administration of this Franchise. The administrator may be changed by
City from time to time by written notice given to Grantee.
SECTION 2. ADVISORY BODY
City may appoint an advisory body to monitor the performance of Grantee in
executing the provisions of this Franchise. The advisory body shall perform all
functions required of it by the Council and applicable laws, ordinances, rules and
regulations.
SECTION 3. DELEGATION OF AUTHORITY BY CITY
A. City reserves the right to delegate and redelegate from time to time any of
its rights or obligations under this Franchise to any body or organization.
B. Any delegation by City shall be effective upon written notice by City to
Grantee of such delegation.
C. Upon receipt of notice by Grantee of City's delegation, Grantee shall be
bound by all terms and conditions of the delegation not in conflict with this
Franchise.
D. Any such delegation, revocation or redelegation, no matter how often made,
shall not be deemed an amendment to this Franchise or require any consent of
Grantee.
2'70
12/15/80
ARTICLE XIV.
JOINT SYSTEM, ACCEPTANCE,
INCORPORATION OF OFFERING, EXHIBITS, PUBLICATION
SECTION 1. OTHER FRANCHISES
A. The System intended for City, may be part of a joint system that serves the
cities of Eden Prairie, Edina, Hopkins, Minnetonka and Richfield, Minnesota.
B. Grantee will, in good faith, apply for and accept, if offered to it, a fran-
chise (similar franchise) from each of the other cities on all the same terms
and conditions herein provided, except provisions omitted as inapplicable.
C. Notwithstanding any other provision of this Franchise, if less than all of
the other of said cities offer a similar franchise to Grantee, which is
accepted by Grantee, Grantee or City may cancel this Franchise and all of
their obligations hereunder by written notice given to the other not later
than 30 days after all the other of said cities shall have formally acted
upon their respective franchise ordinances; provided, that if Grantee elects
7-to cancel this Franchise pursuant hereto, it must also cancel all other
franchises granted to it by the other of said cities effective simultaneously
herewith.
SECTION 2. TIME OF ACCEPTANCE: GUARANTEE: INCORPORATION OF OFFERING: EXHIBITS
A. Grantee shall have 30 days from the last date of adoption of a similar fran-
chise by all of the cities listed in Section lA of this Article, to accept
this Franchise in form and substance acceptable to City. However, in no
event will acceptance occur later than 90 days after the adoption of this
Franchise, unless the time for acceptance is extended by City. Such accep-
tance by Grantee shall be deemed the grant of this franchise for all pur-
poses.
B. Upon acceptance of this Franchise, Grantee shall be bound by all the terms
.and conditions contained herein. Grantee shall provide all services and
offerings specifically set forth in the Offering to provide cable communica-
tion service within City and other cities included in or a part of a joint
system; and, by its acceptance of this Franchise, Grantee specifically agrees
that the Offering of Grantee, including all promises, offers, representations
and inducements contained therein, is specifically incorporated by reference
and made part of this Franchise. The failure to refer to the Offering in any
specific provisions of this Franchise shall not be a limitation on the ob-
ligation of Grantee to fully comply with the Offering. Grantee further
acknowledges that all promises, offers, representations and inducements
contained in the Offering of Grantee were freely and voluntarily made to City
by Grantee.
C. The Offering shall be permanently kept and filed in the Office of the City
Clerk and the originals or reproductions thereof shall be available for
inspection by the public during normal business hours. Also, the Grantee may
summarize the Offering in a manner acceptable to City or reproduce the entire
Offering, and shall have either at the following locations in the following
quantities:
(1) Office of the City Clerk - 1 copy;
(2) Administrator designated in this Franchise - 1 copy;
(3) Public libraries - 1 copy each;
(4) Office of the City Attorney,- 1 copy;
(5) Hennepin County Law Library - 1 copy;
(6) Local office of Grantee - 1 copy;
(7) Office of any School District in City - 1 copy.
D. In the event of conflicts or discrepancies between any part of the Offering
and the provisions of this Franchise or between any part of the summary made
by Grantee and the Offering, those provisions which provide the greatest
benefit to City, in the opinion of'the Council, shall prevail.
12/15/80
271
EXHIBIT B
GRANTEE SCHEDULE OF RATES
I. SUBSCRIBER NETWORK
A. Basic Rates.
1. TIERS
Standard
150 Ft. Aerial Seniors &
Installation Monthly Homebound
(First Outlet)
TIER 1 Universal Service. $ 19.95 Free Free
Converter not re-
quired for this
service
TIER 2 Family Service.
(v Subscriber owns
0 converter $ 19.95 $ 3.95 $ 3.36
Subscriber rents
..� converter from
Q Grantee $ 19.95 Various Various
Q TIER 3 Full service.
Subscriber owns
converter $ 19.95 $ 5.95 $ 5.06
Subscriber rents
converter from
Grantee $ 19.95 %Various -*-Various
TIER 3 Expanded Service.
(Expanded)(Included converter
and unit) $ 19.95 $ 10.95 $ 9.31
2. Rates will remain constant for two years after commencement of construc-
tion of System or until completion of all construction required by Article V,
Section 1 of this Franchise, whichever is longer as determined by City.
3. Subscribers will have the option of renting various types of converters
as follows:
Grantee Converter Rate Schedule
Initial Monthly
Description Rate
1. Block Converter $ 1.00
2. OAK L -35 1.50
3. Scientific Atlanta 6700
- set -up converter 2.50
Descrambler option 3.00
- remote control option 4.00
- addressable feature 5.00
(not initially available)
The rental rate shall be added to the appropriate base rate shown in the
table above if the subscriber rents the converter from Grantee. Subscribers may
choose to rent or buy converters from sources other than the Grantee, however, a
Grantee converter or descrambler will be necessary for premium services.
4. The standard installation rate will include the installation of 150 feet
or less of aerial cable drop to. each subscriber dwelling within the initial ser-
vice area. Aerial installations within the initial service area in excess of 150
feet will be charged at cost on a time and material basis. Underground installa-
tions will be charged at cost on -a time and material basis. Free standard instal-
lation on TIERS 2 and 3 will.be provided within the first 30 days of energizing
newly completed construction areas in the initial service area.
12/15/80
272
(Exhibit B)
5. For dwelling units located within the initial service area but in areas
where the density is lower than 40 homes per street mile, Grantee retains the
right to assess the following additional installation charges'pursuant to the
following conditions:
Density /Mile
Additional Cost Per
Installation
30 to 39 $ 40.00
20 to 29 $ 60.00
1 to 19 $ 80.00
a. There will be no free installation period.
b. Grantee will make special financial arrangements to allow
subscribers to pay the installation charges over time as
part of the monthly billing at the prevailing terms on
consumer loans.
C. The rates quoted are based on currently projected costs
of construction. Should the cost of construction be less
than anticipated, installation charges will be lowered
accordingly.
6. Senior Citizen and Homebound discounts of 15% will be offered on stan-
dard installation and monthly service of TIERS 2 and 3. The discount is available
to all dwelling units where the head of the household is a senior, 62 years of age
or older, or homebound.
B.
Extra Outlets.
'Installation (At
time of initial
Installation)
Monthly
TIER
1 Converter not required
$ 10.00 each
-Free
TIER
2 Subscriber owns converter
$ 10.00 each
$1.95 each'
Subscriber rents converter
from Grantee
$ 10.00 each
!" Various
TIER
3 Subscriber owns converter
$ 10.00 each
$3.95 each
Subscriber rents converter
from Grantee
$ 10.00 each
*-*Various
*-Each outlet installed after the initial installation will be $14.95 each.
**Same Converter rental option as provided for under Section IA of this Exhibit B.
C. Reconnection.
Charges for reconnection of existing installations shall be $14.95 for each
reconnection regardless of the number of outlets.
D. Commercial Rates For Subscriber Network Services.
These rates will be subject to negotiation and will depend on the number of
outlets required and the type of services selected. A typical commercial rate for
department store requesting 10 outlets on TIER 3 with no converters and no premium
pay would be:
Installation (at.cost on a time and material basis)
Monthly Rate 1st outlet $15.00
2nd outlet $10.00
3rd outlet $ 5.00
Additional
outlets $ 4.00
E. FM Rates.
FM service is-included in the rate structures for TIER 2 and TIER 3.
1
Ir�L
12/15/80 (Exhibit J3)
273
F. Multiple Dwelling Rates.
1. Rates will be negotiated depending on the type of service requested and
the number of dwelling units served. Discounts are generally negotiated for Tiers
1, 2, and 3, and subscribers have the option to pay individually for premium ser-
vices.
2. Typical Percentage Discounts for Tier 3 Service
Low Rise (Fewer than four stories
with no elevator) Fewer than 25 units - 5%
More than 25 units - 10%
High Rise 30 to 49 units - 10%
50 to 99 units - 15%
100 to 199 units - 20%
200 units upwards - 25%
3. If the multiple dwelling is occupied by only senior citizens or home-
bound persons or both, both the multiple dwelling discount and the seniors and
homebound discount will apply to the monthly basic cable rate.
Q G. Miscellaneous Provisions Regarding Converters.
1. No deposit will be charged on the rental of Grantee converters. Gran-
o tee, however, reserves the right to institute a converter deposit if excessive
loss or damage to the converter units is experienced.
2. The various monthly converter rental rates include the replacement
and /or repair of defective units.
3. Subscribers renting Grantee converters will have the option to buy them
at a price based on the type of converter and length of time the converter has
been rented.
H. Premium Services.
1. Premium service rates shall be as follows:
MONTHLY
Home Theater Network $ 3.95
Home Box Office 7.50
CINEMAX 7.50
The Movie Channel 7.50
Showtime 7.50
Premiere 7.50
2. A $1.00 per month discount will be offered to subscribers taking two or
more premium services other than Home Theater Network at any one time.
3. Lockout devices will be available free of charge.
4. Installation for premium services shall be free with the initial instal-
lation of Tier 2 or 3 service. Thereafter, any number of premium services added
at the same time shall be added at a maximum cost of $14.95.
5. Pay- per -view service shall be charged on the basis of the event chosen.
The range of charges is expected to be in the order of $2.00 to $5.00 per event.
II. SERVICES TO GOVERNMENT AND EDUCATION FACILITIES (INCLUDING LIBRARIES)
A. Installation Fees:
1. One cable outlet (per facility) Free
2. More than one outlet (per-facility) At cost of time
and materials
B. There shall be no monthly charge for Tier 1, 2, or 3.
1'2/15/80
2'74
III. RATES FOR HOME SECURITY STATUS MONITORING
A. Single: fire alarm,
medic alert, or
security alert button
Double: any two
services
Triple: all three
services
Intrusion sensor
system of Grantee or
other provider
Installation
$ 49.95 maximum
99.95 maximum
119.95 maximum
variable
depending on
options taken
and provider
of system
(Exhibit 13)
Monthly
$ 4.95 maximum
5.95 maximum
6.45 maximum
4.95 up
depending on
options taken
and provider
of system
B. This rate schedule is exclusive of other third party charges that may be
levied by emergency agencies or city licensing.
C. Promotional Discounts.
Rates in this Exhibit B are maximum rates. Grantee may allow special dis-
counts during promotional or other marketing activities.
IV. .INSTITUTIONAL NETWORK
A. Installation.
Grantee's installation charge will be based upon the cost of material and
labor. Grantee will provide an installation quote free of charge on request of
any potential institutional network subscriber. Grantee may waive the installa-
tion charge.
Institutional subscribers must supply any conduits, raceways, trenches or
other passages necessary to permit installation of cable from the distribution
line to the location(s) of the terminal equipment.
B. Institutional Network Rates.
1. Institutional rates depend upon the use (video or data channel), the
number of points involved in the communication, whether the communication is
one -way or two -way, and whether the use is full -time (24 hours a day, 365 days a
year) or only part -time (on an hourly basis). Packet data rates are calculated on
a use basis per 1,000 packets of data. One packet is 80 characters or less.
2. Rates for transmission capacity do not include the costs of terminal
equipment modulators, modems, and demodulators.
3. The institutional subscriber may be charged $20 per month. For this
charge Grantee shall provide communications security system equipment installed on
the subscriber's premises by Grantee. Such equipment may include addressable
taps, transmitter and filters or converter as required and allow access to the
special channels from 300 to 402 MHz.
4. Rates are as follows:
TYPE OF SERVICE RATE
a. For Video (6MHZ*) Channels, used full -time
twenty -four hours a day)
(1) One point to one other point on network $435 /month max.
(2) One point to one other point on network
and return $865 /month max.
(3) - One point to all other points on network $3,000 /month max.
I
J12/15/80 (Exhibit B)
275
O One point to all other points on network
and return $6,000 /month max.-
b. For Video (6MH2) Channels, used part -time
(1) From one point to-one other point on network $7.50 /hour max.
(2) From one point to one other point on network
and return $15.00 /hour max.
(3) From one point to all other points on network $50.00 /hour max.
(4) From one point to all other points on network
and return $110.00 /hour max.
(5) Special Teleconference Yearly Rate for one
hour per business day $1,800.00 /year max.
C. For data channel ^%, full -time (0.2511flIz)
(1) From one point to one other point on network $36 /month max.
(2) From one point to one other point on network
and return $56 /month max.
C[ (3) From one point to all other points on network $232 /month max.
Q (4) From one point to all other points on network
and return .$366 /month max.
d. For data channel, full -time (0.50MHz
(1)
From one point to
one other point on network
$52 /month max.
(2)
From one point to
one other point on network
and return
$100 /month max.
(3)
From one point to
all other points on network
$355 /month max.
(4) From one point to all other points on network
and return $596 /month max.
e. For data channel, full -time (1.00 MHz
(1) From one point to one other point on network $87 /month max.
(2) From one point to one other point on network
and return $168 /month max.
(3) From one point to all other points on network $614 /month max.
(4) From one point to all other points on network
and return $1,050 /month max.
f. For data channel, full -time (2.00MHz)
(1) From one point to one other point on network $157 /month max.
(2) From one point to one other point on network
and return $308 /month max.
(3) From one point to all other points on network $1,132 /month max.
(4) From one point to all other points on network
and return $1,960 /month max.
g. Packet Switching Data Network
(1) Data transmission charge $1.00 /1000 packets
(2) Connection to Packet Network $100
(3) Cable Access Processor Lease $25 /month
*To calculate the rate for FM video channels, multiply the 6MHz rate by 2.3.
* *Data channels may be used for analog signal transmission such as audio.
121115/80
2'76
E. Grantee shall have continuing responsibility for this Franchise, and if
Grantee be a subsidiary or wholly owned corporate entity of a parent corpora-
tion, performance of this Franchise shall be secured by guarantees of the
parent corporation in form and substance acceptable to City, which shall be
delivered at time of, and as part of, acceptance of this Franchise.
F. With its acceptance, Grantee also shall deliver to City an opinion from its
legal counsel, acceptable to City, stating that this Franchise has been duly
accepted by Grantee, that the guarantees have been duly executed and deliv-
ered, that this Franchise and the.guarantees are enforceable against Grantee
and the guarantors in accordance with their respective terms, and which
opinion shall otherwise be in form and substance acceptable to City.
G. With its acceptance, Grantee also shall deliver to City true and correct
copies of documents creating Grantee and evidencing the power and authority
referred to in the opinion of Grantee's counsel, certified as of a then
current date by public office holders to the extent possible and otherwise by
an officer of Grantee.
H. Each exhibit is a part of this Franchise and each is specifically incorporat-
ed herein by reference. The exhibits are as follows:
Exhibit A - Map of Construction by Area, Including Time Schedule.
Exhibit B - Rate Schedule (see attached schedule)
I. This ordinance shall be in full force and effect upon adoption and publication.
Motion for granting First Reading of the Ordinance was seconded by Councilwoman
Schmidt.
Rollcal 1:
Ayes: Bredesen, Courtney, Schmidt, Van Valkenburg
Nays: None
Motion carried.
TRAFFIC SAFETY COMMITTEE MINUTES OF DECEMBER 10, 1980, DISCUSSED. Mr. Hoffman
referred to action taken by the Traffic Safety Committee at its meeting of Decem-
ber 10, 1980, at which residents had expressed concern about traffic on Inter- .
lachen Blvd., and advised that the Traffic Safety Committee had recommended that
the City and the County cooperate in determining the possibility of conducting a
public hearing to determine the feasibility of sidewalk construction. (Council-
man Richards entered the meeting and Councilwoman Schmidt left the meeting at-
this time.) Mr. Dan Berenberg, 5400 Interlachen Blvd., said that since the last
meeting there have been two serious accidents and that there have been 37 reported
accidents since 1975 on Interlachen Blvd. Mr. Dennis Miller said that pedestrians
would not be safe even on sidewalks because of the high speed of traffic and that
the County might patrol the street two days a week, with the City Police patrol-
ling the other five days. Chief Swanson said that, while help from the County
would be supportive, he was afraid that this solution would not provide long term
results. Councilman Bredesen then moved that the feasibility of constructing a
sidewalk along Interlachen Blvd. be investigated, that Police surveillance be
increased and that the County be requested to investigate sight distance in the
area and report its findings to the City. Motion was seconded by Councilman Court-
ney and carried unanimously. Councilman Courtney then moved that Section B of the
minutes be accepted. Motion was seconded by Councilman Bredesen.
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Motion carried. Residents were told that they would be kept advised of further
action.
KUHR ADDITION GRANTED PRELIMINARY PLAT APPROVAL; ORDINANCE NO. 811 -A143 GRANTED
FIRST READING. Affidavits of Notice were presented by Clerk, approved as to form
and ordered placed on file. Mr. Larson presented Kuhr's Addition, generally loc-
ated at the Northwest quadrant of Gleason Road and the Crosstown Highway, for
preliminary plat approval and for PRD -3 zoning in order to construct 39 town-
house units to be located in ten buildings. He advised that all zoning require-
ments had been met and recommended approval, subject to the following conditions:
1) That final rezoning is conditioned on suitable final development plans, with
special attention to be given to providing a suitable buffer for single family
dwellings to the North as well as a landscaped sound barrier of conifer plant-
ings along the South boundary; 2) That final rezoning is conditioned on final
platting; and 3) That final platting is conditioned on a Developer's Agreement
and subdivision dedication. Mr. Thomas Bohannon, President of Viking Hills
Homeowners' Association, was assured that more definite plans will be available
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12/15/80
27'7
for study before final plat approval.. No further comments being made, Council-
man Bredesen offered the following resolution and moved its adoption:
i RESOLUTION
,i BE IT RESOLVED by the Edina City Council that that certain plat knoxm as Kuhr
Addition and presented for preliminary plat approval at the Edina City Council
Meeting of December 15, 1980, be and is hereby granted preliminary plat approval.
Motion for adoption of the resolution was seconded by Councilman Courtney.
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
Councilman Bredesen thereupon offered Ordinance No. 811 -A143 for First Reading
as follows:
ORDINANCE NO. 811 -A143
AN ORDINANCE AMENDING THE ZONING ORDINANCE (NO. 811)
BY ADDING TO THE PLANNED RESIDENTIAL DISTRICT.(PRD -3)
THE CITY COUNCIL OF EDINA, MINNESOTA, ORDAINS:
Section 1. Paragraph 4 of Section 5 of Ordinance No. 811 of the City is
enlarged by adding the following thereto:
"The extent of the Planned Residential District (Sub- District PRD -3) is en-
larged by the addition of the following property:
N That part of the Northeast 1/4 of the Northwest 1/4 and the Northwest 1/4 of
O the Northeast 1/4 of Section 6, Township 116, North Range 21 West of the
Fifth Principal Meridian, described as follows: Beginning on a point in the
West line of said Northeast 1/4 of the Northwest 1/4 distant 814.5 feet
North of the Southwest corner of said Northeast 1/4 of the Northwest 1/4;
Q ther_ce.running East on a deflection angle to the right of 92 degrees 20
Q minutes a distance of 676.3 feet; thence North parallel with the West line
of said Northeast 1/4 of the Northwest 1/4 a distance of 366 feet to a point
which is 283.9 feet South of the North line of said Section 6; the actual
point of beginning of the tract to be described; thence running East on a
deflection angle to the right 92 degrees 20 minutes a distance of 1317.5
feet more or less to the center lien of the Town Road, also known as Gleason
Road as now laid out and travelled; thence Northeasterly along said center
line a distance of 384.7 feet more or less to its intersection with the North
line of said Section 6; thence West along said North lire a distance of
1426.3 feet more or less to a point which is distant 678.6 feet East of the
Northwest corner of the Northeast 1/4 of the Northwest 1/4 thence South
parallel with the West line of said Northeast 1/4 of the Northwest 1/4 a
distance of 283.9 feet to the point of beginning, which lies Northerly of
the following described line: Beginning at the East Quarter corner of
Section 6, Township.116, Range 21, thence North 00 degrees 09 minutes 27
seconds East along the East line of said Section 6 a distance of 1807.59
feet; thence North 78 degrees 48 minutes 33 seconds West a distance of
1070.37 feet thence North 8 degrees 13 minutes 33 seconds West a distance of
1031.19 feet; thence North 12 degrees 36 minutes 50 seconds East a distance
of 490.0 feet; thence South 77 degrees 23 minutes 10 seconds East a distance
of 100.0 feet to the.actual point of beginning of the line to be described;
Thence North 77 degrees 23 minutes 10 seconds West a distance of 180.30
feet; thence along a tangential curve to the left with a radius of 687.96
feet (delta angle 30 degrees 18 minutes 23 seconds, tangent distance 186.31
feet) a distance of 363.89-feet; thence South 72 degrees 18 minutes 27
seconds West along tangent to last described curve a distance of 145.43 feet;
thence along a tangential curve to the right with a radius of 839.93 feet
(delta angle 22 degrees 43 minutes, tangent distance 168.72 feet) a
distance of 333.02 feet; thence North 84 degrees 10 minutes 27 seconds
West a distance of 600.0 feet and there terminating. Said last described
course is not tangent to the last described curve. EXCEPTING therefrom the
Westerly 150 feet thereof, as measured at right angles to the West line
thereof (which is in Sub - District PRD -3.)"
LIONS GATE 1ST ADDITION GRANTED FINAL PLAT APPROVAL. Mr. Swanson presented Lions
Gate 1st Addition (previously known as Braemar Associates First Addition) for
final plat approval, recalling that this plat'is generally located West of Cahill
Road and North of W. 78th Street. Mr. Erickson reviewed the terms of the sale
document, advising that, while the wording had not been worked out, the understand-
ing had been agreed upon with the attorney for the developer.* He explained that
approval of any variances or platting will be considered at a later date. Discus-
sion ensued as to the division of payment of attorney's fees. The Mayor explained
that, because of financing problems, it was necessary for the City Attorney to
spend considerable time on this matter and that he believed that Mr. Barron should
12/15/80
278
pay $4,000 toward attorney's fees. Mr. Barron agreed to pay that amount. Council-
man Richards thereupon offered the following resolution and moved its.a_doption:
RESOLUTION
BE IT RESOLVED by the Edina City Council that that certain plat known as Lions
Gate 1st Addition, platted by Braemar Associates, Inc., and presented at the Regu-
lar Meeting of the Edina City Council is hereby granted final approval.
Motion for adoption of the resolution was seconded by Councilman Courtney.
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
Councilman Richards thereupon offered the following resolution and moved its adop-
tion:
RF.gnT.TTTTON
BE IT RESOLVED by the Edina City Council that the Sale Documents for the sale by
the City to Braemar Associates, Inc., of that part of Outlot 1, Heath Glen lying
East of Delaney Blvd., are hereby approved and the Mayor and Manager are auth-
orized and directed to execute and deliver the Sale Document and all other docu-
ments required to be executed and delivered by the City in connection with such
sale.
Motion for adoption of the resolution was seconded by Councilman Courtney.
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
ORDINANCE NO. 811 -A142 SECOND READING CONTINUED TO JANUARY 5, 1980. Mr. Larson
recalled that Second Reading of Ordinance No. 811-A142 had been continued from
the Council Meeting of December 1, 1980, so that an official of Al Johnson Cons-
truction Company could make commitments personally to the Council. Mr. Thomas
Gesner, President of Al Johnson Construction Company, explained that it the inten-
tion of his company to construct the building according to the plans submitted,
but that he could not make a firm commitment inasmuch as he could not get prices
on the building until the 0 -1 Office District zoning has been granted. He
explained that if costs of the proposed building are too high, he would build
another quality building but that he could not assure the Council of the style of
the other building. In response to a question of Mr. Gesner, he was advised
that this Council - cannot legally commit- future Councils. proponents were
assured that the zoning change would be approved if favorable plans are presented.
Councilman Courtney then moved that the hearing be continued until January 7,
1981, to give the developer additional time to develop definite :costs: for the
proposed building. Motion was seconded by Councilman Richards.
Ayes: Courtney, Richards, Van.Valkenburg
Nays: Bredesen
Motion carried.
LOTS 9 AND 10, BLOCK 1,,DEWEY HILL R.L.S. GRANTED FINAL APPROVAL. Mr. Larsen pre-
sented Lots 9 and 10, Block 1, Dewey Hill Addition R.L.S. for final approval,
recalling that this property is generally located South of Shannon Drive and
advised that all ordinance requirements have been met. No objections being
heard, Councilman Richards offered the folloiing resolution and moved its adoption:
RESOLUTION
BE IT RESOLVED by the Edina City Council that that Registered Land Survey for
Lots 9 and 10, Block 1, Dewey Hill, be and is hereby granted final approval.
Motion for adoption of the resolution was seconded by Councilman Courtney.
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
HEARING DATE SET FOR PRELI1KINARY PLAT FOR LOIS 7TH ADDITION. notion of Council-
man Bredesen was seconded by Councilman Richards, setting hearing date for prelim-
inary plat for Lois 7th Addition for January 5, 1980.
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Motion carried.
FINBELL SECOND ADDITION DRAINAGE AND UTILITY EASEMENT VACATION HEARING DATE SET.
As recommended by Mr. Larsen, Councilman Courtney offered the following resolu-
tion and moved its adoption:
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I2/1S%80
279
RR OUTTTnN
CALLING PUBLIC HEARING ON VACATION OF EASEMENT FOR
DRAINAGE AND UTILITY PURPOSES
BE IT RESOLVED by the City Council of the City of Edina, Hennepin County, Minne-
sota, as follows:
1. It is hereby found and determined that the following easement for drainage
and utility purposes should be considered for vacation, in accordance with the
provisions of Minnesota Statutes, Sections 412.851 and 160.29:
10' drainage and utility easement adjoining Amundson Avenue on Lot 1,
Block 1 except the East 25' and the West 5'; and the 10' drainage and
utility easement adjoining Amundson Avenue on Lot 1, Block 2, except the
Easterly 10' and Westerly 5' of Findell Second Addition.
2. This Council shall meet at the time and place specified in the form of
notice included in paragraph 3 hereof for the purpose of holding a public hear-
ing on whether.such vacation shall be made in the interest of the public.
3. The Clerk is authorized and directed to cause notice of the time, place
and purpose of said hearing to be published once a week for two weeks, in the
Edina Sun, being the official newspaper of the City, the first publication at
least 14 days prior to the date of such hearing and to post such notice, at
least 14 days .prior to the date of such hearing, in at least three (3) public
and conspicuous places within the City, as provided in Minnesota Statutes,
Section 412.851. Such notice shall be in substantially the following form:
(Official Publication)
CITY OF EDINA
4801 W. 50TH STREET
EDINA, MINNESOTA 55424
NOTICE OF PUBLIC HEARING
FOR VACATION OF DRAINAGE AND UTILITY EASEMENT
NOTICE IS HEREBY GIVEN that the City Council of the City of Edina, Hennepin
County, Minnesota, will meet at the Edina City Hall, 4801 W. 50th Street, on
Monday, January 5Y 1980, at 7:00 p.m.'o'clock for the purpose of holding public
hearing on easement vacation described as follows:
10' drainage and utility easement adjoining Amundson Avenue on Lot 1, Block
1 except the East 25' and the West 5'; and the 10' drainage and utility
easement adjoining Amundson Avenue on Lot 1, Block 2, except the Easterly
10' and Westerly 5' of Findell Second Addition. _
All persons who desire to be heard with respect to the question of whether or
not the above proposed drainage and utility easement vacation is in the public
interest and should be made shall be heard at said time and place. The Council
shall consider the extent to which such proposed easement vacation affects
existing easements within the area of the proposed vacation and the extent to
which the vacation affects the authority of any person, corporation, or munici-
pality owning or controlling electric or telephone poles and lines, gas and
sewer lines, or water pipes, mains, and hydrants on or under the area of the pro-
posed vacation, to continue maintaining the same or to enter upon such easement
or portion thereof vacated to maintain, repair, replace, remove or otherwise
attend thereto, for the purpose of specifying in any such vacation resolution,
the extent to which any or all of any such easements, and such authority to main-
tain or to enter upon the area of the proposed vacation, shall continue.
BY ORDER OF THE EDINA CITY COUNCIL.
Florence B. Hallberg
City Clerk
Motion for adoption of the resolution was seconded by Councilman Richards.
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
PORTION OF OUTLOT 1, HEATH GLEN ADDITION ROADWAY EASEMENT VACATION HEARING DATE
SET. As recommended by Mr. Hughes, Councilman Courtney offered the following
resolution and moved its adoption:
RESOLUTION CALLING PUBLIC HEARING ON VACATION OF
EASEMENT FOR ROADWAY PURPOSES
BE IT RESOLVED by the City Council of the City of Edina, Hennepin County, Minne-
sota, as follows:
1. It is hereby found and determined that the following easement for roadway
purposes should be considered for vacation, in accordance with the provisions of
Minnesota Statutes, Sections 412.851 and 160.29:
A portion of Outlot 1, Heath Glen Addition, lying.Easterly of Delaney
Blvd.
2.' This Council shall meet at the time and place specified in the form of
notice included in paragraph 3 hereof for the purpose of holding a public hear-
12/15/80
Rio on whether such vacation shall be made in the interest of the public.
3. The Clerk is authorized and directed to cause notice of the time, place
and purpose of said hearing to be published once a week for two weeks, in the
Edina Sun, being the official newspaper in the City, the first publication at
least 14 days prior to the date of such hearing and to post such notice, at least
14 days prior to the date of such hearing, in at least three (3) public and cons-
picuous places within the City, as provided in Minnesota Statutes, Section 412.851.
Such notice shall be in substantially the following form:
(Official Publication)
CITY OF EDINA
4801 W. 50TH STREET
EDINA, MINNESOTA 55424
NOTICE OF PUBLIC HEARING
FOR VACATION OF ROADWAY EASEMENT
NOTICE IS HEREBY GIVEN that the City Council of the City of Edina, Hennepin
County, Minnesota, will meet at the Edina City Hall, 4801 W. 50th Street, on Mon-
day, January 19, 1980, at 7:00 p.m. o'clock for the purpose of holding public
hearing on roadway easement vacation described as follows:
The portion of Outlot 1, Heath Glen Addition, lying Easterly of
Delaney Blvd.
All persons who desire to be heard with respect to the question of whether or not
the above proposed drainage and utility easement vacation is in the public inter-
est and should be made shall be heard at said time and place. The Council shall
consider the extent to which such proposed easement vacation affects existing
easements within the area of the proposed vacation and the extent to which the
vacation affects the authority of any person, corporation, or municipality owning
or controlling electric or telephone poles and lines, gas and sewer lines, or
water pipes, mains, and hydrants on-or under the area of the proposed vacation,
to continue maintaining the same or to enter upon such easement or portion
thereof vacated to maintain, repair, replace, remove or otherwise attend thereto,
for the purpose of specifying in any such vacation resolution, the extent to
which any or all of any such easements, and such authority to maintain or to
enter upon the area of the proposed vacation, shall continue.
BY ORDER OF THE EDINA CITY COUNCIL.
Florence B. Hallberg
City Clerk
Motion for adoption of the resolution was seconded by Councilman Richards.
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
EDINA INTERCHANGE CENTER 3RD ADDITION ROAD AND UTILITY EASEMENTS VACATION APPROVED.
Affidavits of Notice were presented by Clerk, approved as to form and ordered
placed on file. Mr. Hoffman presented a petition, signed by owners of the affect-
ed property located in Lots 18, 19 and 20, Edina. Interchange Center, Third Addi-
tion. No objections being heard, Councilman Courtney offered the following
resolution and moved its adoption:
RESOLUTION VACATING
STREET, DRAINAGE AND UTILITIES
IMEREAS, a resolution of the City Council, adopted the 17th day of November,
1980, fixed a date for a public hearing on a proposed vacation of easements for
street, drainage and utility purposes; and
WHEREAS, two weeks' published and posted notice of said hearing was given and
the hearing was held on the 15th day of December, 1980, at which time all persons
desiring to be heard were given an opportunity to be heard thereon; and
IMEREAS, the Council deems it to be in the best interest of the City and of the
public that said easement vacation be made; and
WHEREAS, the Council has considered the extent to which the vacation affects
existing easements within the area of the vacation and the extent to which the
vacation affects the authority of any person, corporation, or municipality owning
or .controlling electric or telephone poles and lines, gas and sewer lines, or
water pipes, mains, and hydrants on or under the area of the proposed vacation,
"to continue maintaining the same or to enter upon such easement area thereof
vacated to maintain, repair, replace, remove, or otherwise attend thereto;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Edina, Hennepin
County, Minnesota, that the following described street, drainage_and utility ease-
ment be and is hcreby vacated-effective as of December 16, 1980:
Vacation for street purposes of the North'60' of Lot 19, Edina Interchange
Center, Third Addition; and i
Vacation of drainage and utility easements located in the East 5' of the
South 105' of Lot 18, the East 5' of Lot 19, and the East 5' of the
North 60' of Lot 20, Edina Interchange Center Third Addition
I
12 / 15/50
and that the Clerk is authorized, and directed to cause a Notice of Compl(g1on2 8 1
of Proceedings to be prepared, entered in the transfer record of the Coillity Audi-
tor, and filed with the Reggster of Deeds, in accordance with Minnesota Statutes,
Section 412.851.
Motion for adoption of the foregoing resolution was duly seconded by Councilman
Richards.
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
COMMUNICATIONS RECORDER BID AWARDED. Mr. Rosland presented tabulation of bids
for a communications recorder and advised that the only bid had been submitted
by Dictaphone Corporation in the amount or $13,178.00. Councilman Richards'
motion was seconded by Councilman Bredesen for award to recommended bidder, Dict-
aphone Corporation.
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Motion carried. - - - --
CONTRACTS AWARDED FOR STORM SEWER IMPROVEMENT NO. ST.S -165. Mr. Rosland pre -
sented tabulation of bids for Storm Sewer and Subgrade Correction (earthwork) on
St.S -165 (One Corporate Center - Phase Five).Tabulation for Proposal A (Sub -
0 grade Correction) showed Julian M. Johnson low bidder at $13,891.60, Orfei &
Vi Sons, Inc., at $14,071.96, Duluxe Construction, Inc., at $18,666.10, and A.C.G.
Mechanical at $26,563.50, against Engineer's estimate of $13,071.00. Tabulation
for Proposal B (Storm Sewer) showed G. L. Contracting, Inc., low bidder at
$95,899.41, A.C.G. Mechanical at $96,247.00, Richard Knutson, Inc., at $97,959.39,
and Orfei & Sons, Inc., at $109,207.61, against Engineer's estimate of $99,956.70.
Councilman Richards' motion for award to recommended low bidder in both cases
was seconded by Councilman Courtney.
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
BID AWARDED FOR LIFE PAK V FOR NEW AMBULANCE. Being advised by Mr. Rosland that
only one bid had been received for Life Pak V for the new ambulance, said bid
being from Physio- Control in the amount of $6,450.00, Councilman Bredesen'Zr
motion for award to Physio - Control for $6,450.00, was seconded by Councilman
Richards.
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Motion carried.
ART CENTER REMODELING BID APPROVED SUBJECT TO OBTAINING YEAR 7 COMMUNITY DEVEL-
OPMENT FUNDS. Mr. Rosland recalled that original 'bids for the remodeling of
the Art Center had been rejected because the cost was too high. Recalling that
Mr. Howard Nichols had agreed to contribute $25,000 toward the project in mem-
ory of his wife, Elaine (Tede), Mr. Rosland presented a tabulation of new bids
showing Dahn Builders, Inc., low bidder at $48,150.00, Keho Construction at
$52,700.00 and H. K. Lindahl & Sons at $54,815.00. Mr. Rosland recalled that it
had been intended to use Community Development funds for the lavatories for the
handicapped, but that these funds will not be available until August 1, 1981.
Following discussion, Councilman Bredesen's motion that the staff proceed to
work with the County in obtaining Year 7 Funds for the lavatories and that the
contract be awarded on the condition that the Year 7 Funds are approved, was
seconded by Councilman Courtney.
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Motion carried.
PARK DEPARTMENT CAPITAL IMPROVEMENTS FUNDS DISCUSSED. On behalf of the Park
Board, Mrs. Joan Lonsbury recommended that the following dollars be taken out of
the Deducated Funds and used for capital improvements: Lewis Park, $47,000; Wal-
nut Ridge Park, $33,000; Arden Park, $5,000; Pamela Park, $2,000; 44th Street
Property, $5,000. It was informally agreed that the request would be further
studied.
HISTORICAL AND ARCHITECTURAL SURVEY OF COUNTRY CLUB DISTRICT APPROVED. Recall-
ing that the Historical and Architectural Survey of the Country Club District had
been continued from the meeting of December 1, 1980, Councilman Richards said
that he had studied the situation further and believes that the survey has merit.
He then moved that the Council approve the recommendation of the Edina Heritage
Preservation Board that the nomination to the National Register of Historic Places
12/15/80
WE
for the Edina Country Club District'be forwarded to the Minnesota State Histori-
cal Preservation Officer. Motion was seconded by Councilman Bredesen.
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Motion carried.
STOREFRONT /YOUTH ACTION CONTRACT APPROVED. Being advised by Mr. Rosland that
the 1981 Agreement between the City of Edina and Storefront /Youth Action, Inc.
is due for renewal and that it reflects the amount of $21,000 approved in the
1981 Budget, Councilman Courtney offered the following resolution and moved its
adoption:
RESOLUTION
BE IT RESOLVED that the Mayor and Manager are hereby authorized and directed to
enter into Agreement between the City of Edina and Storefront /Youth Action for
the year 1981.
Motion for adoption of the resolution was seconded by Councilman Richards.
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
1981 SALARY ADJUSTMENTS APPROVED.
As recommended
by Mr. Rosland, Councilman
Richards offered the
following resolution and moved its adoption:
30,160
23,348
RESOLUTION
27,430
'14,274
BE IT RESOLVED by the
Edina City Council that the
following
adjustments be and
are hereby made to the
1981 Salary
Resolution:
4.10
Level
4
PERSONNEL COMPENSATION
RATES
4.35
1
2
3
4
Management III
$32,344
$35,178
$38,012
$40,430
Management II
24,180
26,312
28,418
30,230
Management I
20,358
22,152
23,920
25,454
Technical Management
1851570
20,228
21,840
23,244
Technical III
16,406
17,836
19,292
20,514
Technical II
14,560
15,834
17,108
18,200
Technical I
13,052
14,196
15,340
16,328
General II
11,310
12,298
13,286
14,144
General I
10,062
10,946,
11,830
12,584
Public Safety
PS Management III
PS Management II
PS Management I
PS General II
PS General I
Step 1
Step 2
Step 3
Step 4
Step 5
Managerial positions
27,430
29,848
32,240
25,662
27,924
30,160
23,348
25,376
27,430
'14,274
15,522
16,770
11,310
12,298
13,286
PART TIME EMPLOYEES
Vaar Armma
Level A
$ 3.40
3.75
3.95
4.20
4.54
should not exceed $5.25.
Seasonal
Level
1
$3.35
3.60
Level
2
3.50
3.80
Level
3
3.80
4.10
Level
4
4.10
4.35
Level
5
3.65
Motion for adoption of the resolution was seconded by
Rollcall:
Ayes: Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Resolution adopted.
34,294
32,084
29,172
17,836
14,144
Level B
$ 3.80
4.10
4.40
4.65
-' 5.00
Councilman Courtney.
ORDINANCE TO BE CONSIDERED SETTING FEES AND CHARGES. Mr. Rosland presented a list
indicating various fees and charges set forth in present ordinances.and advised
that he will request the City Attorney to draft an ordinance covering all such
fees and charges. No formal action was taken.
1
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283
STATEMENT OF ESTIMATED EXPENDITURES AND REC0MME -NDED TRANSFERS FOR YEAR ENDING
DECEMBER 31, 1980, . APPROVED. As recommeizded by Mr. DaIen, Councilman Bredesen's
motion was seconded by Councilman Courtney, approving Statement.of Estimated
Expenditures and Recommended Transfers for the year ending December 31, 1979.
Ayes: 'Bredesen, Courtney, Richards, Van Valkenburg
Nays: None
Motion carried.
MAYOR'S RETIREMENT PARTY DATE NOTED. Mr. Rosland announced that a retirement
party for Mayor Van Valkenburg is planned for February 19, 1981, and will be held
at L'Hotel de France.
CLAIMS PAID. Motion of Councilman Courtney was seconded by Councilman Bredesen
for payment of the following Claims as per Pre -List: General Fund, $166,323.24;
Park Fund, $2,140.40; Art Fund, $1,258.19; Park Construction, $6,725; Swimming
Pool, $1,222.40; Golf Course, $5,164.04; Recreation Center, $15,766.85; Gun
Range, $406.73; Water Fund, $11,593.00; Sewer Fund, $118,140.71; Liquor Fund,
$246,740.94; Construction, $187,005.64; IBR Fund, $78.80; Total, $762,565.94.
Council's agenda having been covered, Councilman Bredesen's motion for adjourn-
ment was seconded by Councilman Richards. Adjournment at 10:45 p.m.
City Clerk