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CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
AN ORDINANCE RENEWING AND EXTENDING A CABLE TELEVISION
FRANCHISE IN THE CITY OF LAKEVILLE, DAKOTA COUNTY,
MINNESOTA, AND RULES GOVERNING ITS OPERATION
FEBRUARY 16, 1982
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Page
Section 1
Definitions 1
Section 2
Grant of Authority 3
Section 3
Franchisee's Agreement to be Bound by Franchise 4
Section 4
Design, Service and Equipment Provisions. 5
Section 5
Levels of Service 8
Section 6
Subscriber Rates 9
Section 7
Community Access Channels 11
Section 8
Construction of System 14
Section 9
Citizens Advisory Board 19
Section 10
Termination 20
Section 11
Abandonment, Sale and Purchase of System 21
Section 12
Fees, Financial and Other Guarantees 26
Section 13
Administration and Maintenance 30
Section 14
Miscellaneous 32
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ORDINANCE NO. 199
CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
AN ORDINANCE RENEWING AND EXTENDING A CABLE TELEVISION
FRANCHISE IN THE CITY OF LAKEVILLE, DAKOTA COUNTY,
MINNESOTA, AND RULES GOVERNING ITS OPERATION
The City Council of the City of Lakeville ordains as follows:
SECTION 1. DEFINITIONS
For the purpose of this 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 include 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.
1.01. "Board" is the Minnesota Cable Communications Board.
1.02. "Channel" is a six Megahertz (MHz) frequency band which
is capable of carrying either one standard video signal, a number of
audio, digital or other non-video signals, or some combination of such
signals.
1.03. "Gross Revenues" is any revenue derived directly or indir-
ectly by Franchisee, its affiliates, subsidiaries, parent and any person
in which Franchisee has a financial interest of five percent or more from
or in connection with the operation of the System in Lakeville, including
but not limited to, basic subscriber service monthly fees, pay cable fees,
installation and reconnection fees, leased channel fees, converter rentals,
studio rental, production equipment and personnel fees and advertising
revenues. Revenues derived by the Franchisee as a result of overall system
operations in Lakeville and other cities, and therefore, not directly attri-
butable to payments made by Lakeville subscribers, shall be apportioned
according to the number of subscribers in each city. The term does not
include any taxes on services furnished by Franchisee and imposed directly
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upon any subscriber or user by the State, City or other governmental unit
and collected by Franchisee on behalf of said governmental unit.
1.04. "System" shall mean any system in Lakeville which
operates for hire the service of receiving and amplifying programs broad-
cast by one or more television or radio stations and any other programs
originated by a cable communications company or by another party, and
distributing such programs by wire, cable, microwave or other means,
whether such means are owned or leased, to persons who subscribe to such
service. Such definition does not include:
A. Any system which serves fewer than 50 subscribers;
B. Any master antenna television system which means any
system which serves only .the residents of one or more apartment dwellings
under common ownership, control or management and any commercial estab-
lishment located on the premises of such apartment house and which
transmits only signals broadcast over the air by stations which may be
normally viewed or heard locally without objectionable interference, and
which does not provide any additional service over its facilities other than
closed-circuit security viewing services;
C. Any specialized closed-circuit system which does not use the
public rights of way for the construction of its physical plant; and
D. Any translator system which receives and rebroadcasts over
the air signals.
1.05. "Subscriber" is any person or entity who subscribes to
a service provided by Franchisee by means of or in connection with the
System whether a fee is paid for such service.
1.06. "Tapping" is observing a two-way communications signal
exchange where the observer is neither of the communicating parties,
whether the exchange is observed by visual or electronic means, for any
purpose whatsoever.
1.07• "Franchisor" is the City of Lakeville.
1:08. "Franchisee" is Metro Cable, Inc.
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1.09. "FCC" is the Federal Communications Commission of the
United States.
1.10. "Class IV Channel" means a signaling path provided by
a cable communications system to transmit signals of any type from a sub-
scriber terminal to another point in the cable communications system.
1.11. "City" is the City of Lakeville.
1.12. "Offering" is the document submitted by the Franchisee to
the City outlining the Franchise history and an operating proposal.
1.13. "Capability" means potential ability.
1.14. "Capacity" means present ability.
1.15. "Deems itself insecure" means the Franchisor has reason-
able cause to believe that any of the following conditions exist or are
likely to occur in the foreseeable future: (1) the Franchisee's violation of
the Franchise, (2) the Franchisee becoming insolvent or bankrupt, (3) the
Franchisee's failure to complete and upgrade the system as required by the
Franchise, (4) the Franchisee abandoning the system or any part of it, (5)
a claim being asserted against the Franchisor because of the awarding of
this Franchise, construction of the system or operation of the system.
SECTION 2. GRANT OF AUTHORITY
2.01. The Franchisor has, following reasonable notice, con-
ducted a full public hearing, affording all persons reasonable opportunity
to be heard, which proceeding was concerned with the analysis and consider-
ation of the technical ability, financial condition, legal qualification and
general character of the Franchisee.
2.02. The Franchisor, after such consideration, analysis and
deliberation, has approved and found sufficient the technical ability, finan-
cial condition, legal qualification and character of the Franchisee.
2.03• The Franchisor has at the public hearing also considered
and analyzed the plans of the Franchisee for the construction and opera-
tion of the cable communications system, and found it to be adequate and
feasible in view of the needs and requirements of the entire area to be
served.
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2.04. To the knowledge and belief of the Franchisor, this
Franchise and the procedure used in formulating and awarding it complies
with the franchise standards of the Board.
2.05. It is understood and agreed by the Franchisee that this
Franchise is non-exclusive.
2.06. There is hereby granted a non-exclusive Franchise
renewal for fifteen (15) years commencing the date this Franchise Ordinance
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is adopted, unless sooner terminated as provided herein, by the City for
the installation, operation and maintenance of a cable communications sys-
tem within the City of Lakeville, Dakota County, Minnesota, to Metro Cable,
Inc., subject to the terms of this Ordinance.
2.0'7. Any further renewal of this Franchise shall be for a
period of not more than fifteen (15) years unless permitted by Board rules.
Renegotiation of the terms of the Franchise may occur whenever agreed upon
by the Franchisor and Franchisee. Such renegotiation shall occur at least
two years prior to the end of the Franchise term, unless the Franchisor
determines not to reissue the Franchise to the Franchisee or wants to
consider additional applicants for a Franchise. Nothing in this Franchise
shall be construed to require its renewal or extension.
2.08. The Franchise shall automatically terminate if the
Franchisee fails to obtain either a regular certificate of confirmation or
renewal of a certificate of confirmation from the Board; provided, however,
that the Franchisee may operate its cable communications system while the
Board is considering the application for the renewal of its certificate of
confirmation.
2.09. Upon expiration of the term of the Franchise, Franchisor
shall have the right, at its election, to:
A. Renew or extend this Franchise;
B. Invite additional franchise applications or proposals;
C. Terminate this Franchise without further action;
D. Purchase the System from Franchisee. If the Franchisor
elects to pursue this option, it shall initiate the arbitration procedure set
forth herein at least one year before the 15-year Franchise term expires.
Franchisee shall make it a condition of each contract entered
into by it that Franchisor shall have the right to exercise these options.
SECTION 3• FRANCHISEE'S AGREEMENT
TO BE BOUND BY FRANCHISE
3.01. Franchisee agrees to be bound by all the terms and condi-
tions of this Franchise.
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3.02. Franchisee agrees to provide all available services speci-
fically set forth in and to comply with all ,provisions of its Offering to
provide a System within the boundaries of the City. Failure of Franchisee
to provide a System as described in its Offering, at Franchisor's option,
shall be a violation of the provisions of this Franchise. In the event of
conflicts or discrepancies between the Offering and the provisions of this
Franchise, the provisions which provide the greatest benefit to the
subscribers, in the opinion of the Franchisor, shall prevail.
3.03. It shall be the right of all subscribers to receive all
available services insofar as their financial and other obligations to the
Franchisee are honored. If the Franchisee elects to modify or sell the
System, or the Franchisor revokes or fails to renew the Franchise,
Franchisee shall do everything in its power to ensure that all subscribers
receive continuous, uninterrupted service, regardless of the circumstances
during the lifetime of the Franchise. In the event of purchase by the
Franchisor, or a change of Franchisee, the current Franchisee shall
cooperate with Franchisor to operate the System for a temporary period
in maintaining continuity of service to all subscribers.
SECTION 4. DESIGN, SERVICE
AND EQUIPMENT PROVISIONS
4.01. System technical and performance standards promulgated
by the FCC relating to cable communications systems contained in sub-part
K of part 76 of the FCC's rules and regulations relating to cable communi-
cations systems are incorporated by reference into this Franchise. The
Franchisee shall be prepared to show, at any time, upon reasonable request
by an authorized representative of the City, that the System does, in fact,
comply with these criteria. The results of any tests required by the FCC
or this Franchise shall be filed within ten (10) days of the conduct of such
tests with the Franchisor and the Board.
4.02. The Franchisor may require the Franchisee to conduct
complete performance tests of the System once each calendar year or at
any time the Franchisor believes the System is not performing properly or
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is causing interference. Within ten days the results of any test shall be
filed with the City and the Board. The tests and testing procedure shall
be determined by the Franchisor and paid for and performed by the
Franchisee. Franchisee shall fully cooperate with Franchisor in performing
such testing and shall prepare a report, if requested, within 30 days after
notice. The report prepared by Franchisee shall include at least:
A. A description of the complaint of inadequate System per-
formance which precipitated 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 the tests and analyses
which may be required by Franchisor, or determined when the test is
performed.
As a result of testing or an evaluation, Franchisor may require
Franchisee to modify the System or to provide additional services to remedy
or lessen the impact of the problems, if any. Franchisee .shall comply with
any such requirement of the Franchisor unless technology does not permit
or Franchisee establishes to the satisfaction of Franchisor that the cost
would prohibit the implementation of the modification or the additional
services. Failure of Franchisee to upgrade or modify its System or to
provide additional services when requested by Franchisor shall be grounds
for forfeiture of monies from the security fund unless due to reasons beyond
the reasonable control of Franchisee and so demonstrated by Franchisee.
4.03. Franchisee shall provide two-way interconnect cable for
interconnection with other cable systems in the metropolitan area. Such
interconnection shall be provided when mandated by the Board or when
Franchisor determines that interconnection is desirable. The Franchisor
will, however, consider the economic feasibility of the interconnection.
Franchisee shall abide by Franchisor's requests for interconnection, and
shall use its best efforts to negotiate interconnection with other system
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owners when requested by Franchisor. Subject to approval of the
Franchisor, the designated regional channel may be shared with the govern-
ment access channel as may be required until such time as the Franchisor
requests a separate channel or until combined usage of the channel expands
to such point as it is in use during 80 percent of the time between 8:00
a.m. and 10:00 p.m. during any consecutive six-week period. Use of time
on the regional channel or channels shall be made available without charge.
4.04. After service has been established by activating trunk
cables for any area, Franchisee shall provide service to any requesting sub-
scriber within that area within 90 days from the date of request.
4.05. Franchisee shall provide an emergency alert override
capacity which can be activated by the City from the City police station.
4.06. Franchisee shall conduct a promotional outreach program
to identify and contact potential users of the cable system in Lakeville and
create an awareness of access television. The budget for 1882 and 1983 in
the City shall be at least $5,000.00 excluding staff time. Franchisee shall
use a cable newsletter, personal interviews, speaking engagements, cable-
cast and other media advertisements. Programming and video training
workshops shall be provided on a continual basis free of charge. These
workshops shall be offered to public institutions, community groups,
government officials and other groups of interested citizens.
4.0'7. Franchisee shall provide a free cable drop and free basic
service to the City Hall, schools, police and fire departments. In addition,
the Franchisee shall provide all premium services without charge, and
provide and maintain at no charge a color television at City Hall. Upon
request by the Franchisor, the Franchisee will provide basic service at no
charge and a cable drop at no charge to any non-profit organization within
the Franchisee's service area.
4.08.' The standard VHF channel 6 shall be designated for uni-
form regional channel usage; provided, however, that until the regional
channel becomes operational, the designated VHF channel 6 may be used
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by the cable communications company as it deems appropriate. Subject
to the approval of the City, such designated regional channel may be
shared with the government access channel as may be required until such
time as the City requests a separate channel.
4.09. The Franchisee shall provide a cable communication
system having the technical capability for the incorporation of non-voice
return comm unications capacity which, for the purposes of this require-
ment, shall mean the provision of appropriate system design techniques with
the installation of cable and amplifiers suitable for the subsequent insertion
of necessary non-voice communications electronic modules.
SECTION 5• LEVELS OF SERVICE
5.01. The Franchisee shall continue to provide the services
listed as presently available in the Offering unless the service is no longer
available through no fault of the Franchisee. This service may not be
reduced without written permission of the Franchisor.
5.02. The Franchisee shall increase its programming as indi-
cated in the Offering.
5.03• On or before September 1, 1882, the Franchisee shall have
and thereafter maintain in operation at least two satellite receiving stations.
5.04. The system provided by the Franchisee shall be capable
of expansion as technology and public demand dictate or require. To
accomplish this, the City reserves the right to require the Franchisee to
provide additional services as they are needed to provide for the demands
of the public. The Franchisee shall comply unless technology does not
permit, or the Franchisee establishes to the satisfaction of the City that the
cost would prohibit the establishment of such additional service.
5.05. The System shall have in use a minimum of 18 activated
channels. The System shall have an available channel capacity equal to a
minimum of 162 MHz of bandwidth (the equivalent of 27 television broadcast
channels). For the purposes of this section, a cable system with a channel
capacity equal to a minimum of 162 MHz of bandwidth shall mean: the
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provision of a distribution system designed and constructed so that a
minimum of 162 MHz of bandwidth (the equivalent of 27 television broadcast
channels) can be put into use with only the addition of the appropriate
head end and subscriber terminal equipment.
5.06. A11 new cable will be designed and built with state of
the art equipment at 400+ MHz, two-way capability. All existing cable will
be upgraded to 330 MHz on or before January 1, 1986. If the Franchisor,
in its sole discretion, determines that the level of service is substandard
or that the channels are substantially full, the Franchisee shall within
24 months upgrade the entire system to 400+ MHz.
5.07. The following pay service will be added on or before
January 1, 19$3 unless the Franchisee demonstrates to the satisfaction of the
Franchisor that addressable converters are not available and technically
reliable:
Home Box Office
Cinema x
The Disney Channel or HTN Plus
SECTION 6. SUBSCRIBER RATES
6.01. The Franchisee shall establish and adhere to a rate
schedule approved from time to time by resolution of the City Council. The
initial schedule shall be as follows:
RATE SCHEDULE
Installation
Type of Service Monthly Charge Initial ollow up
Basic CATV Service--Including
one converter $9.50 $15.00
Front Row Movie Package $3.00 + Basic $5.00
Showtime Movie Package--Includes
only one converter $8.50 + Basic $19.95 $19.95
*Additional outlets #2 and #3 $.75 each $10.00
*Additional Outlets #4 or more $.75 each $10.00 $10.00
Additional Converter #2 and more $2.00 each $10.00
Reconnect $10.00
Move Connection $10.00
Move Outlet $5.00
*Provides only basic service.
6.02. Notwithstanding the rate schedule, the Franchisee may offer
reduced or free service on a non-discriminatory basis.
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6.03. Basic cable service is that level of service provided by the
Franchisee that allows the subscriber to receive: Channel 2 KTCA; Channel 4
WCCO; Channel 5 KSTP; Channel 9 KMSP; Channel 11 WTCN; Channel 17 KTCI;
WGN from Chicago; Local weather with KEC-65 voice over from the National
Weather Bureau; Channel 6 regional interconnect channel; and required public
access channels.
6.OQ. Residential subscriber contracts shall not exceed twelve (12)
months' duration.
6.05. Rates charged by the Franchisee for monthly service here-
under shall be uniform, fair and reasonable, competitive with other rates in
the Twin City metropolitan area considering the density and construction costs
of the Lakeville system, and designed to meet all necessary costs of service,
including a fair rate of return on investment of the property used for such
service in the City. Maximum rates shall be set For the operation and
maintenance of the System as are determined to be reasonable under exist-
ing conditions in connection with the rights granted herein, and said rates
shall be approved by the Franchisor. The Franchisee shall have the burden
of justifying any requested rate increases.
6.06. Any rate increase in addition to other factors described in
this section shall take into consideration the consumer price index for the
Minneapolis-St. Paul area compiled by the U.S. Department of Labor, Bureau
of Labor Statistics, or a successor index, and may be supported by additional
costs for increased services or additional services. The Franchisee shall be
obligated to pay the costs necessary for determining an appropriate rate
increase including, if necessary, any costs that may be required for the
hiring of rate experts the Franchisor may hire. For the purpose of determin-
ing if the rates are reasonable, the books of the Franchisee shall be open to
inspection by the Franchisor or its agents at all reasonable times. If the
Franchisee requests a change in rates, it shall present in detail in writing
the statistical basis, in addition to other requirements as set out in this
section, for the proposed rate change at least 60 days prior to the proposed
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effective date of such rates. Before any increased rates or prices to be
charged by the Franchisee are approved by the Franchisor, the Franchisor
shall hold a public hearing on the matter. A notice of such hearing shall be
published at least once in the official newspaper not less than ten days prior
to the date of the hearing. At the hearing the Franchisor may take such
steps as it deems necessary to obtain other available information and data
before granting or denying approval of the Franchisee's request for a rate
change.
SECTION 7. COMMUNITY ACCESS CHANNELS
7.01. The Franchisee shall provide 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 avail-
able for use by the general public on a first come, nondiscriminatory basis;
at least one specially designated access channel for use by local educational
authorities; at least one specially designated access channel for local
government use; and at least one specially designated access channel avail-
able for lease on a first come, nondiscriminatory basis by commercial and
noncommercial users. This requirement shall not apply to subscribers
receiving only alarm system service or only data transmission service for
computer operation functions. The VHF spectrum shall be used for at least
one of the required specially designated noncommercial public access
channels. Franchisee shall make no charges For channel time or playback of
prerecorded programming available to the public on the aforementioned
channels.
7.02. If the subscribers have the option of receiving programs
on one or more special service channels without also receiving the regular
subscriber services, the Franchisee may comply with this section by
providing the subscribers who receive the special service only, at least one
specially designated composite access channel composed of the programming
on the specially designated noncommercial public access channel, the
specially designated educational access channel and the specially designated
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local government access channel. This requirement shall not apply to
subscribers receiving only alarm system service or only data transmission
service for computer operation functions.
'7.03. If the System has insufficient channel capacity to allow
for activation of all the specially designated access channels required or
where demand for use of the channels required in Section 7.01, as determined
in the Franchisor's sole discretion, does not warrant activation of all the
specially designated required access channels, public, educational, govern-
mental and leased access channel programming may be combined on one or
more cable channels. To the extent time is available, access channels may
also be used for other cablecast and noncablecast services, provided that
such services are subject to immediate displacement if there is demand to use
the channel for its specially designated purpose. Each such system shall, in
any case, provide at least one full channel on the VHF spectrum for shared
access programming.
7.04. Whenever the specially designated noncommercial public
access channel, the specially designated education access channel, the
specially designated local government access channel, or the specially desig-
noted leased access channel required in 4 MCAR ~ 4.204 A.1 is in use during
80 percent of the weekdays (Monday-Friday), for 80 percent of the time
during any consecutive 3-hour period for six weeks running, and there
is demand for use of an additional channel for the same purpose, the
Franchisee shall then have six months in which to provide a new specially
designated access channel for the same purpose even if such additional
channel or channels necessitates the installation of converters.
7.05. The Franchisee shall establish rules, subject to the
approval by the Franchisor, pertaining to the administration of the specially
designated channels referred to in paragraph 7.01 above. The operating
rules established by the Franchisee governing said channels shall be filed
with the Franchisor and the Board within 90 days after any such channels
are put into use.
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7.06. The Franchisee shall make readily available for public use
without charge state of the art equipment and personnel necessary for the
production, programming and playback of prerecorded and live programs for
the specially designated noncommercial public access channels required by 4
MCAR Section 4.204 A.1 including, but not limited to, a complete recording
studio located in Lakeville or within two miles thereof, two community access
locations in public buildings designated by the Franchisor with color
cameras, lighting, sound production equipment, and a production coordinator.
The Franchisee shall also make readily available without charge, upon
request by the Franchisor or upon need being shown, the equipment
necessary to make it possible to record programs at remote locations with
battery operated portable equipment. Need within the meaning of this section
shall be determined by subscriber petition. The petition must contain the
signatures of at least 10 percent of the subscribers of the System, but in no
case more than 500 nor fewer than 100 signatures. Needed equipment shall
be selected by the Franchisor and the Franchisor may require new,
additional or updated equipment from time to time if the Franchisor
determines that it is appropriate based upon the changing state of the art
and if the Franchisor also determines there is a demonstrated need, No
charge shall be made for the production, programming and playback of
prerecorded and live programs on the public access channels. The community
access locations may be changed from time to time by the Franchisor. The
initial locations shall be connected free of charge b y the Franchisee. If the
locations once established are moved, the Franchisor shall reimburse the
Franchisee for its actual out-of-pocket costs in making the moves.
'7.07. The Franchisee shall connect the City Council chambers to
interactive cable without charge and maintain on a permanent basis
equipment at the City Council chambers to allow live cablecasting. The
interactive cable shall be installed and made operational within six months
after a request is made by the Franchisor. When interactive cable is
operational at the City Council chambers, upon request of the Franchisor,
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the Franchisee shall, without charge, carry live cablecasts of all City
Council meetings, City Planning Commission meetings and public hearings.
SECTION 8. CONSTRUCTION OF SYSTEM
8.01. Permission by Franchisor for commencement of construction
of the cable communications system authorized is granted, subject to
Franchisee giving Franchisor reasonable notice of the proposed construction
thereof, so as to coordinate all work between Franchisor and Franchisee.
The Franchisee shall obtain and file with the City lien waivers before
commencing any construction work.
8.02. Franchisee shall not open or disturb the surface of any
street, sidewalk, driveway or public place without first obtaining a permit
from the Franchisor or proper authority, for which permit the Franchisor
may impose a reasonable fee to be paid by the Franchisee. The location
of lines, conduits, cables and other property placed in the streets and
public places shall be determined by the Franchisor. The Franchisee shall,
upon completion of any work requiring the opening of any street or public
place, restore it, including the pavement and its foundations, to as good
a condition as it was formerly, and in a manner and quality approved
by the Franchisor. Such work shall be performed with due diligence and
if the Franchisee fails to perform the work promptly, or fails to remove
all dirt and rubbish from the work site and to put the street or public
place back into good condition, the Franchisor shall have the right to put
the street or public place back into good condition at the expense of the
Franchisee and the Franchisee shall, upon demand, pay to the Franchisor
the cost of such work done or performed.
8.03. All wires, conduits, cable and other property and facili-
ties of the Franchisee shall be located, constructed, installed and maintained
so as not to endanger or unnecessarily interfere with the usual use of the
streets and public places. The Franchisee 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. The Franchisor
shall have the right to inspect and examine at any reasonable time and
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upon reasonable notice the property owned or used, in part or in whole,
by the Franchisee. The Franchisee shall keep accurate maps and records
of all of its facilities and furnish copies of such maps .and records as
requested by the Franchisor.
8.04. All wires, cables, amplifiers and other property of the
Franchisee shall be constructed and installed in an orderly and workman-
like manner. All cables and wires shall be installed parallel with electric
and telephone lines whenever possible. Multiple cable configurations shall
be arranged in parallel and bundled with due respect for engineering
considerations.
8.05. In accordance with 4 MCAR § 4.202 R, all wires, conduits,
cables and other property and facilities of the Franchisee shall be located,
constructed, installed and maintained in compliance with applicable codes
including:
(1) National Electric Safety Code (National Bureau of
Standards).
(2) National Electric Code (National Bureau of Fire
Underwriters).
(3) Bell System Code of Pole Line Construction.
(4) Applicable FCC or other Federal, state and local
regulations.
The Franchisee shall keep and maintain all of its property so as
not to unnecessarily interfere with the usual and customary trade, traffic or
travel upon the streets and public places of the Franchise area or endanger
the lives or property of any person.
$.06. The Franchisee shall not place poles or other fixtures
where they will interfere with any gas, electric or telephone fixture, water
hydrant or main, and all such poles of other fixtures placed in any street
shall be placed at the outer edge of the sidewalk and inside the curb line,
and those placed in alley, and then in such a manner as not to interfere
with the usual travel.
8.07. The Franchisee shall, on the request of any person hold-
ing a building moving permit issued by the Franchisor, temporarily raise
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or lower its wires to permit the moving of buildings. The expense of such
temporary removal, raising or lowering of wires shall be paid by the person
requesting it, and the Franchisee shall have the authority to require such
payment in advance. The Franchisee shall be given not less than forty-
eight (48) hours' advance notice to arrange for such temporary changes.
8.08. Nothing contained in this Franchise shall be deemed to
empower or authorize Franchisee to cut or trim any trees, ornamental or
otherwise, in any of the streets, alleys or public highways, but Franchisee
may cut or trim trees as necessary only pursuant to a prior agreement
with the owner of property which is adjacent to the street area in which
such tree stands.
8.09. Whenever the Franchisor undertakes public improvements
which affect cable communications equipment, it shall, with due regard
to reasonable working conditions, require the Franchisee to remove or
relocate its wires, conduits, cables and other property. The Franchisee
shall relocate or protect its facilities at its own expense. The Franchisor
shall give the Franchisee reasonable notice of the undertaking of public
improvements which affect the Franchisee's cable communication equipment.
8.10. Franchisee shall construct the System in accordance with
the time table attached hereto as Exhibit "A."
8.11. The service areas provided by the Franchisee may be
reviewed periodically by the Franchisor. The Franchisee shall extend its
system into an area if there are at least ten (10) subscribers per one
quarter (1/4) mile of trunk and distribution cable. Franchisee may charge
additional cost per installation where densities are between 20 and 35 homes
per mile:
Additional Cost
Density/Mile Per Installation
30 - 34 $30.00
25 - z9 $50.00
20 - 24 $70.00
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Where densities are 19 or less houses per mile, Franchisee may charge those
subscribers on a cost sharing basis between Franchisee and the subscribers
on a graduated basis as follows:
Percentage of Cost
Cost Pai ost Paid
Density/Mile By Franchisee By Subscriber
15 - 19 60% 40%
to - l4 50% 50%
Subscribers electing to receive cable service under this plan will be eligible
for a pro-rata refund depending on the number of additional subscribers
taking service during the 24 months following activation.
8.12. The Franchisee shall install trunk and distribution cable
in all new subdivisions.
8.13. Franchisee shall not erect, for any reason, any pole
on or along any street in an existing aerial utility system. if additional
poles in an existing aerial route are required, Franchisee shall negotiate
with the utility for the installation of the needed poles. Any such addition
shall require the advance written approval of the City Administrator.
Franchisee shall negotiate the lease of pole space and facilities from the
existing pole owners for all aerial construction under mutually acceptable
terms and conditions.
8.14. The undergrounding of cables is encouraged, and shall
be accomplished at Franchisee's expense when required. Undergrounding
shall be accomplished by Franchisee according to applicable City ordinances.
Previously installed aerial cable shall be undergrounded in concert, attd on
a cost-sharing basis with other utilities when such other utilities may
convert from aerial to underground construction. Franchisee shall construct
underground cable when:
A. The existing utilities are already underground.
B. The utilities are planning to go underground within the
next four l4) year period.
C. Grantee is unable to get pole clearance in certain areas.
D. In new subdivisions.
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Franchisee .will work with developers and other utilities during
the construction phase of new housing in the scheduling of work and in
planning the manner in which it is to be done so as to be able to cost
share and to mutually benefit. For all streets where the utilities and cable
are overhead, Franchisee will go underground with individual drops at cost
if the residents prefer this to an aerial drop.
8.15. Any internal wiring requested by a non-profit institution
shall be charged at Franchisee's cost on a time and materials basis.
8.16. If drops to an individual subscriber require z-inch cable
or greater, the extra cost over and above the cost of a regular drop may be
charged to the subscriber.
8.1'7. Nothing in this Franchise shall be construed to prevent
the City from constructing sewers, grading, paving, repairing and/or
altering any street, or laying down, repairing or removing water mains or
constructing or establishing any other public work. All such work shall be
done, insofar as practicable, in such manner as not to obstruct, injure
or prevent the free use and operation of the poles, wires, conduits, con-
ductors, pipes or appurtenances of Franchisee. If any such property of
Franchisee herein shall interfere with the construction or repair of any
street or public improvement, whether it be construction, repair or removal
of a sewer or water main, the improvement of a street or any other public
improvement, all such poles, wires, conduits or other appliances and facili-
ties shall be removed or replaced in such manner as shall be directed by
the City so that the same shall not interfere with the said public work
of the City, and such removal or replacement shall be at the expense of
Franchisee herein.
8.18. In the event any street or portion thereof used by
Franchisee shall be vacated by the City during the term of this Franchise,
Franchisee shall forthwith remove its facilities therefrom unless specifically
permitted to continue the same, and on the removal thereof, restore, repair
or reconstruct the street area where such removal has occurred, and place
the street area where such removal has occurred in such condition as may be
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required by the City., In the event of failure, neglect or refusal of
Franchisee, after 30 days' notice by the City to repair, improve or maintain
such street portion, the City may do such work or cause it to be done, and
the cost thereof as found and declared by the City shall be paid by
Franchisee as directed by the City.
SECTION 9. CITIZENS ADVISORY BOARD
The Franchisor shall appoint a seven-person board with a City
staff advisor to monitor the performance of the Franchisee in the execution
of the provisions of the Franchise. An attempt will be made to appoint
representatives from the school districts in the City to the commission.
Individuals commercially involved in cable communications, public or private
broadcasting, or the private news media shall not serve as members of the
commission. The responsibility of the commission shall include the following:
A. Forw arding recommendations to the Franchisor regarding
the immediate or on-going use of cable communications in the City of
Lakeville.
B. Conciliating disagreements among the Franchisee, subscribers
and public and private users of the Franchisee's system's facilities.
C. The advisory body shall submit an annual report to the
Franchisor, the Franchisee, and to the Board, assessing the Franchisee's
performance according to the terms of the Franchise and make recommenda-
tions to the Franchisor regarding the apparent or likely need for upgrading
the System to meet the current state of the art.
D. The advisory body shall submit a report to the Franchisor
at least twelve (12) months prior to the expiration of a Franchise and prior
to the expiration of a certificate of confirmation. The report shall include a
written appraisal of the performance of the Franchisee over the entire length
of the Franchise with regard to the provisions of the Franchise. The report
shall also include recommendations for revised or additional provisions of
the Franchise, considering at least the following items:
(1) Channel capacity.
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(2) Channel for access cablecasting.
(3) Facilities and staff assistance available for access
cablecasting.
(4) Twa-way capability.
(5) The need for further service to be extended within
the Franchised area. Need is to be determined by
a reassessment of the communications needs of the
Franchisor in relation to the services generally offered
by the cable industry.
A copy of the report shall be sent to the Franchisor, the
Franchisee and to the Board.
SECTION 10. TERMINATION
10.01. The Franchisor may cancel the Franchise if the Franchisee
violates the Franchise Ordinance, or any rules, order or determination of
the Franchisor, or attempts to evade any of the provisions of the Franchise
Ordinance or practices any fraud or deceit upon the Franchisor. Conditions
or circumstances for the Franchisor's termination of the Franchise shall
include, but are not limited to, the following:
A. If the Franchisee defaults in the performance of any of its
obligations under the Franchise, and fails to cure the default within 60 days
after receiving written notice of default.
B. If a petition is filed by the Franchisee under the Bankruptcy
Act, or other insolvency or creditors' rights law, state or federal, or the
Franchisee is adjudged a bankrupt or insolvent under any insolvency or
creditors' rights law, state or federal.
The Franchisor shall provide the Franchisee with a written notice
of the cause for termination and its intention to terminate the Franchise,
and shall allow the Franchisee a minimum of 60 days subsequent to receipt
of the notice in which to correct the violation. The Franchisee shall be
provided with an opportunity to be heard at a public hearing before the
City Council prior to the termination of the Franchise. In the event that
the Franchisor decides to terminate the Franchise, the Franchisee shall have
a period of thirty (30) days beginning the day next following the date of
the conclusion of the public hearing at which the termination of the
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Franchise is considered, within which to file an appeal with the Board,
pursuant to Minnesota Statutes 238.14, as the same may be from time to time
amended. During such thirty (30) day waiting period, if an appeal is taken
and until the Board determines the appeal, the Franchise shall remain in
full force and effect, unless the term thereof expires sooner. If the Board
approves of the action of the Franchisor, the Franchise shall terminate
immediately; if the board disapproves of the action of the Franchisor, the
Franchise shall remain in effect during the term thereof unless terminated
sooner in accordance with the Board's rules. Any such appeal to the Board
is a contested case to which the Board is not a party.
10.02. Upon termination or forfeiture of the Franchise, Franchisee
shall, upon request of Franchisor, remove its cable, wires and all other
appliances relating to the cable communications systems from the streets,
alleys and other public places within the Franchise area, and in the event
of failure to do so, the following procedure shall be followed: The
Franchisor may remove or have removed the cable, wires and all other appli-
ances relating to the cable communications system, the cost of such removal
to be charged to the Franchisee. Franchisee shall also pay Franchisor's
reasonable attorney's fees incurred in enforcing this provision.
SECTION 11. ABANDONMENT, SALE
AND PURCHASE OF SYSTEM
11.01. The Franchisee may not abandon any part of the cable
comm unications service. If, nonetheless, the Franchisee in violation of this
Franchise does abandon the System, it will give the Franchisor and the
Board three months' prior written notice and will compensate the Franchisor
for all resulting damages. In addition to its other available remedies, the
Franchisor may enjoin the abandonment.
11.02. Franchisor shall be entitled to a right of first refusal
of any bona fide offer to purchase the system made to Franchisee. Within
30 days after the Franchisor receives written notice from the Franchisee of
the bona fide offer, the Franchisor shall reject the offer or indicate that
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the offer will be seriously considered. If the Franchisor gives a prelim-
inary indication of its interest to exercise the option, it shall have 105
days from the date of the original written notice of the offer from the
Franchisee to exercise the option. The option shall be exercised by written
notice to the Franchisee.
11.03. Procedures. In the event Franchisor elects to exercise
its right to purchase the system as provided in this Franchise, the
following shall then apply:
A. If the purchase is the result of the Franchisor electing to
exercise its right of first refusal of a cash offer for the Lakeville system,
exclusive of other systems operated by the Franchisee in other cities,
(including installment payments), the price shall be the amount of the bona
Fide cash offer. The Franchisor shall pay to the Franchisee the cash price
in full within six months, or if the bona fide offer was for payment over a
term of years, the Franchisor may elect to make similar payments with the
same rate of interest.
B. If the Franchisor's election to purchase is not the result of
such an offer and if Franchisor and Franchisee cannot agree upon the terms
and conditions of the purchase, Franchisor shall have the right to proceed
to arbitration. Arbitration shall commence and proceed according to appli-
cable Minnesota law except as follows:
(1) The parties shall, within 5 days of Franchisor's
decision to proceed to arbitration, appoint one arbitrator each who is a
certified public accountant. The two arbitrators shall each agree upon the
selection of a third arbitrator who is also a certified public accountant
within 10 days after appointment of the second arbitrator.
(2) Within 30 days after appointment of all arbitrators and
upon 10 days' written notice to parties, the arbitrators shall commence a
hearing on the terms and conditions of the purchase.
(3T The hearing shall be recorded and may be transcribed
at the request of either party. All hearing proceedings, debates and
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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 current market value of the System exclusive of the value of the
Franchise itself, and all other details of the acquisitions by the
Franchisor. Unless otherwise agreed by the parties, the price shall be
paid in full within six months after the arbitrators make their decision
unless Franchisor withdraws its offer as provided herein.
(5) At the close of the hearings and within 20 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 Franchisor and Franchisee.
{6) The decision of a majority of the arbitrators shall be
binding upon both parties except that Franchisor may, in its sole discretion
and without any penalty or cost to Franchisor of any kind, withdraw its
offer to purchase 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 same
may be amended, 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 arbitrators is unqualified;
(d) Designated time limits have been exceeded;
(e) The arbitrators have not proceeded expeditiously;
or
(f) Based upon the record, the arbitrators abused
their discretion.
(8) In the event a Court of competent jurisdiction deter-
mines the arbitrators have abused their discretion, it may order the
arbitration procedure repeated and issue findings, orders and directions.
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(9) The cost of the neutral arbitrator shall be borne
equally by the parties. Each party shall pay the cost of the arbitrator
selected by that party.
C. If the City exercises its right of first refusal of a bona
fide cash offer of the Lakeville system, exclusive of other systems operated
by the Franchisee in other cities, the purchase price shall be the amount
of such offer. If the City acquires the system under any other circum-
stances, then the purchase price shall be the current market value of the
Lakeville system, exclusive of any value attributed to the Franchise itself.
D. Franchisee expressly waives its rights, if any, to relocation
costs that might otherwise be provided by law.
E. The date of valuation shall be the date Franchisor makes a
written offer for the system.
11.04. Sale or Transfer of Franchise.
A. This Franchise shall not be sold, assigned or transferred,
either in whole or in part, nor shall title thereto, either legal or equit-
able, or any right, interest or property therein, pass to or vest in any
person without full compliance with the procedure set forth in this section
and in 4 iN.C.A.R., Chapter 12. This section shall include sale or transfer
of all or a majority of the corporation's assets, merger (including any
parent and its subsidiary corporation), consolidation, creation of a
subsidiary corporation, or sale or transfer of stock in a corporation so as
to create a new controlling interest in the System. The term "controlling
interest" as used herein is not limited to majority stock ownership, but
includes actual working control in whatever manner exercised.
(1) The parties to the sale or transfer of this Franchise
shall make a written request to the Franchisor for its approval of a sale
or transfer of this Franchise. Such approval shall not be unreasonably
withheld.
(2) Franchisor shall reply in writing within thirty (30)
days of the request, and shall indicate approval of the request or its
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determination that a public hearing is necessary due to potential adverse
effect on the company's subscribers.
(3) If a public hearing is deemed necessary pursuant
to (2) above, such hearing shall be conducted within thirty (30) days
of such determination, and notice of such public hearing shall be given
pursuant to Board regulations.
(4) Within thirty (30) days after the public hearing,
the Franchisor shall approve or deny in writing the sale or transfer
request.
(5) The Franchisor shall notify the Board of the transfer
of any interest in the system of this Franchise in accordance with the
then applicable rules, regulations or laws. The notification shall be
accompanied by the written certification of the transferee that it meets
all of the requirements with respect to technical ability and financial
stability demanded of the original Franchisee.
(6) Franchisee, upon transfer, shall within sixty (60)
days thereafter file with the Franchisor a copy of the deed, agreement,
or other written instrument evidencing such sale, transfer of ownership or
control, certified and sworn to as correct by the Franchisee.
(7) Franchisor reserves the right, upon a sale or transfer
to impose a reasonable franchise fee or acceptance fee, in its sole dis-
cretion, upon the person or entity to whom a sale or transfer is made, as
is then legally allowed.
B. In reviewing a request for sale or transfer pursuant to
Section A above, the Franchisor may inquire into the qualifications of the
prospective controlling party, and Franchisee shall assist the Franchisor in
so inquiring. The Franchisor may condition the transfer upon such terms
and conditions as it deems reasonable. It is the intent of the Franchisor
to grant this Franchise to Metro Cable, Inc., accordingly, in the absence
of extraordinary circumstances, the Franchisor shall not approve any
transfer or assignment of this Franchise prior to substantial completion of
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t.
construction of the System as reasonably determined solely by the
Franchisor. In no event shall a transfer or assignment of ownership or
control be approved without the transferee becoming a signator to this
Franchise.
SECTION 12. FEES,
FINANCIAL AND OTHER GUARANTEES
12.01. The Franchisee shall save and keep harmless the City,
the City Council, and all City employees and commissions from any suit,
judgment, execution, claim or demand whatsoever which may be asserted
or recovered against it based upon or arising out of the construction,
maintenance, operation of the System or any part thereof. This shall
be guaranteed to the City by a public liability and property damage
policy naming the City, the City Council, and all City employees and
agents as co-insureds, and approved by the City Council in the amount of:
$75,000.00 for property damage to any one person,
$150,000.00 for property damage in any one occurrence,
$500,000.00 for bodily injury to any one person,
$1,000,000.00 for bodily injury in any one occurrence,
to be negotiated and paid for by the Franchisee. The insurance shall
be obtained from a company acceptable to the City Council and a certificate
of coverage shall be provided to the City. The policy shall state that
the City shall be notified in writing by the insurer thirty (30) days
in advance of any cancellation or termination of any such policy.
The City Council shall annually review the above insurance
provisions; and, if it is determined that the insurance coverage is inade-
quate, additional insurance may be required by the City Council and
shall be provided for by the Company.
12.02. The Franchisee shall indemnify, defend and save harm-
less the City, the City Council, and all City employees and agents or other
officials of the City from any damages, losses, expenses, costs, attorneys'
fees or other charges arising from the granting of this Franchise and the
operation of this system, and/or which are incurred as a result of any judg-
ments, appearances, claims, demands, penalties, proceedings, or actions in
connection with, made before, or made by the Federal Communications
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r.~
Commission, the Board or other federal or state regulatory agencies or any
court of law.
12.03. Nothing contained in the Franchise shall relieve any
person from liability arising out of the failure to exercise reasonable
care to avoid injury to the Franchisee's facilities while performing any
work connected with grading, regrading or changing the line of any street
or public place or with the construction or reconstruction of any sewer
or water system.
12.04. The Franchisee shall pay to the Franchisor on or before
March 31 of each year three C3%) percent of the Franchisee's gross revenues
during the previous calendar year ending December 31. This payment shall
be in addition to any other tax or payment the Franchisor received from
the Franchisee. The percentage of gross revenues designated in this
section may be amended by the Franchisor no more than once a year.
Prior to amending the percentage, the Franchisor shall hold a public
hearing preceded by ten (10) days' published notice and service of the
notice on the Franchisee by mail. Any such increase shall not exceed the
then current State or FCC limitations.
12.05. Within 30 days after the City approves this Franchise
agreement, the Franchisee shall pay to the City an acceptance fee in the
sum of $8,500.00. This fee shall be used by the City to cover its adminis-
trative expenses in creating and supervising the Franchise.
12.06. The Franchisee shall assume the cost of publication
of this Franchise Ordinance.
12.07. Within thirty (30) days after the approval of the
Franchise by the Franchisor, the Franchisee shall deposit with the City a
$50,000.00 security fund and maintain that sum on deposit throughout the
term of the Franchise except as otherwise provided herein. The deposit
may be in the form of cash, an irrevocable letter of credit or negotiable
bonds subject to approval by the City Attorney. The deposit shall be
security for the faithful performance by the Franchisee of the terms of the
Franchise Agreement. Accrued interest, if any, shall remain with the
-27-
r.
deposit as additional security unless after periodic review Franchisor
determines, in its sole discretion, to rebate all or part of the accrued
interest to reduce the required amount of the security fund. Franchisee
shall not use the deposit for other purposes and shall not assign, pledge
or otherwise use this security fund as security for any purpose except as a
cable franchise security fund in the Cities of Apple Valley, Rosemount and
Farmington, but only if such cities allow Lakeville the reciprocal right to
invade any separate cable franchise security Fund, or equivalent, they may
have.
A. Within thirty (30) days after notice to it that any amount
has been withdrawn from the security fund, Franchisee shall deposit a sum
of money sufficient to restore such security fund to the original amount.
B. If Franchisee fails, after ten (10) days' notice, to pay to
Franchisor any taxes due and unpaid; or fails to repay to Franchisor,
within such ten (10) days, any damages, costs or expenses which Franchisor
shall be compelled to pay by reason of any act or default of the Franchisee
in connection with this Franchise; or fails, after thirty (30) days' notice
of such failure by Franchisor, to comply with any provision of the
Franchise which Franchisor reasonably determines can be remedied by an
expenditure of the security, Franchisor may withdraw the amount thereof,
from the security fund. Upon such withdrawal, Franchisor shall notify
Franchisee of the amount and date thereof.
C. Whenever Franchisor finds that Franchisee has violated
one or more terms, conditions, or provisions of this Franchise, a written
notice of alleged violation and the amount of proposed penalty to be
assessed shall be given to Franchisee. Franchisee shall then have ten (10)
days to respond to such notice and may request an opportunity to be
heard by Franchisor before Franchisor may withdraw any funds from the
security fund. Upon receipt of request to be heard, Franchisor shall
provide Franchisee an opportunity to be heard at the next regularly
scheduled City Council meeting or call a special meeting for that purpose,
_28_
.
and no funds shall be removed from the security fund prior to the final
disposition of the matter by ,the Franchisor.
D. The security fund shall become the property of Franchisor
in the event that the Franchise is cancelled by reason of the default
of Franchisee or revoked For cause. Franchisee, however, shall be entitled
to the return of such security fund, including accrued interest, if any, or
portion thereof, as remains on deposit at the expiration of the term of the
Franchise, or upon termination of the Franchise at an earlier date,
provided that there is then no outstanding default on the part of Franchisee.
E. The rights reserved to Franchisor with respect to the
security fund are in addition to all other rights of Franchisor, whether
reserved by this Franchise or authorized by law, and no action, proceeding
or exercise of a right with respect to such security fund shall affect any
other right Franchisor may have.
F. Upon presentation of proof satisfactory to the Franchisor
that Franchisee has completed extension of the cable system in accordance
with this Franchise, the Franchisor shall reduce the deposit to $30,000.00
on January 1, 1986 unless it deems itself insecure. If there are funds,
including interest, if any, on deposit at that time in excess of $30,000.00,
the excess funds shall at that time be returned to the Franchisee. Interest
accrued on the $30,000.00 deposit after January 1, 1886 shall remain on
deposit as additional security. Unless sooner drawn down in accordance
with this Franchise, the deposit and accrued interest, if any, will be
returned to the Franchisee at the end of the Franchise term.
12.08. Before exercise of this Franchise, Franchisee shall
furnish a bond to the Franchisor in the amount of Twenty Thousand
($20,000.00) Dollars, to remain in full force for the full term of the
Franchise, with acceptable surety, conditioned upon the faithful performance
by the Franchisee according to the terms of the Franchise and upon the
further condition that if the Franchisee fails to comply with any law,
ordinance or regulation governing this Franchise, the bond shall guarantee
payment of any damages or loss suffered by the Franchisor as a result of
-29-
Failure to comply, including the full amount of any compensation,
indemnification or cost of removal or abandonment of any property of the
Franchisee, plus a reasonable allowance for attorneys' fees and costs, up
to the full amount of the. bond, and further guaranteeing payment by
Franchisee of claims, liens and taxes due to the Franchisor which arise by
reason of the construction, operation or maintenance of the System. The
rights reserved by the Franchisor with respect to bond are in addition to
all other rights the Franchisor may. have under the Franchise or any other
law. Tf the Franchisee has satisfactorily performed pursuant to this
Franchise agreement the Franchisor will reduce the bond requirement to
$1.00 on January 1, 19$6. The Franchisor may, however, from year to year
increase the amount of the bond if it deems itself insecure.
12.09. If the Franchisee fails to comply with any of the time
schedules set out in Sections 5.05, 7.0'7 and 8.10, unless due to acts of God
or other causes beyond the Franchisee's control, the Franchisee shall pay
to the Franchisor a penalty of $200.00 per day for the violation of each
schedule until there is compliance unless waived in whole or in part by the
Franchisor. The term of this Franchise shall also be .reduced by one week
for each day of delay.
SECTION 13. ADMINISTRATION AND MAINTENANCE
13.01. Repairs and Complaints..
A. The Franchisee shall provide a toll-free telephone number
for subscriber complaints, and shall maintain a repair service capable of
responding to subscriber complaints or requests for service within twenty-
four (24) hours after receipt of the complaint or request.
B. Whenever it is necessary to shut off or interrupt services
for the purposes of making repairs, adjustments or installation, the
Franchisee shall do so during periods of minimum use by subscribers.
Unless such interruption is unforeseen, the Franchisee shall give reasonable
notice thereof to the subscribers affected. All costs incurred in making
such repairs, adjustments or installations shall be borne by the Franchisee
unless otherwise provided for in this Ordinance or subscriber contract.
C. All complaints by the Franchisor, subscribers or other
citizens regarding the quality of service, equipment malfunction, billing
disputes and any other matters relative to the .cable television system
shall be investigated by the Franchisee within twenty-four (24) hours.
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The Franchisee shall rectify the cause of justified complaints. If a sub-
scriber or citizen complaint cannot be resolved within thirty (30) days,
the complainant may file the complaint with the Franchisor's City
Administrator, who shall inform the Citizen Advisory Board that the
Franchisee and complainant have been unable to resolve the complaint. The
Franchisor or complainant may also file a written complaint with the Board
in accordance with Board rules governing subscriber complaints.
D. The Franchisee shall instruct all complainants to submit
their complaints regarding quality of service, equipment, malfunctions,
billing and the like in writing. The Franchisee shall keep on file for a
period of five (5) years a copy of all written complaints, which file shall
be open to inspection by the public.
13.02. The Franchisor may audit the Franchisee's accounting
and financial records upon reasonable notice. The Franchisee shall file with
the Franchisor annually an income statement.
Beginning in 1983 and subsequent years, the Franchisee shall
provide the City certified financial statements, examined by an independent
certified public accountant, prepared in accordance with generally-accepted
accounting principles.
The Franchisee shall also file with the Franchisor on or before
March 1 of each year a report containing the following information:
A. Total number of subscribers.
B. Subscribers' growth during year.
C. Service extensions during year.
D. Extensions planned for following year.
E. Plans for updating equipment during coming year.
F. Commencing in 1983, a complete financial audit in a form
and with such detail as required by the City.
13.03. The Franchisor's City Administrator shall be responsible
for the continuing administration of this Franchise.
13.04. The Franchisee shall maintain an office within the city
limits of Lakeville, Farmington, Rosemount or Apple Valley with easy
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access to its customers which shall be open during usual business hours,
and have a listed telephone number.
13.05. The Franchisee shall receive City approval of the form
of any service contract to be used by the Franchisee in its dealings with
subscribers prior to entering into any such service contracts, and the
Franchisee shall make no changes in the form of service contract without
prior approval by resolution of the City Council.
13.06. The Franchisee shall have the authority to promulgate
such rules, regulations, terms and conditions governing the conduct of its
business as shall be reasonably necessary to enable it to exercise its
rights and perform its obligations under this Franchise and to assure an
uninterrupted service to each and all of its customers; provided, such
rules, regulations, terms and conditions shall not be in conflict with the
provisions of this Franchise, the ordinance of the City, of the laws of the
State of Minnesota or the United States. A copy of such rules, regulations,
terms and conditions shall be filed with the City Clerk and Board at least
thirty (30) days before the proposed effective date.
13.07. Copies of all petitions, applications and communications
submitted by the Franchisee to the Federal Communications Commission or
other federal or state regulatory commission or agency having jurisdiction
in respect to any matter affecting operations, so far as the same might
affect the service or operations of the Franchisee in the City, shall also be
submitted simultaneously to the City by filing the same with the City Clerk.
SECTION 14. MISCELLANEOUS
14.01. It shall be unlawful for anyone to obtain any cable
television services from any cable television company or any firm or private
person with intent to cheat or defraud such cable television company,
other firm or private person, by installing, rearranging or tampering
with any facilities or equipment, or by any trick, stratagem, impersona-
tion, pretension, falsification of fact or contrivance, or by any device
or means whatsoever. Anyone found guilty of a violation of any of the
provisions of this section shall be guilty of a misdemeanor, and shall
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„ ,
be liable to a fine not to exceed five hundred ($500.00) dollars or impris-
onment not to exceed ninety (90) days, or both.
14.02. No signals of a Class IV cable communications channel
shall be tranmitted from a subscriber terminal for purposes of monitoring
individual viewing patterns or practices without the express written permis-
sion of the subscriber. The request for such permission shall be contained
in a separate document with a prominent statement that the subscriber is
giving permission with full knowledge of the provision. Such written
permission shall be for a period not to exceed one (1) year, which shall be
renewable at the option of the subscriber. The authorization shall be
revocable at any time by the subscriber without penalty. No penalty
shall be invoked by Franchisee for a subscriber's failure to provide or
renew such an authorization. Such authorization is required for each
type or classification of Class IV cable communications activity planned for
the purpose of monitoring individual viewing patterns or practices. No
information or data obtained by monitoring transmission of a signal from a
signal from a subscriber terminal, including but not limited to lists of the
names and addresses of such subscribers or any lists that identify the
viewing habits of subscribers shall be sold or otherwise made available to
any party other than to the Franchisee and its employees for internal
business use, and also to the subscriber subject of that information, unless
the Franchisee has received specific written authorization from the
subscriber to make such data available. Written permission from the
subscriber shall not be required for the systems conducting systemwide or
individually addressed electronic sweeps for the purpose of verifying system
integrity or monitoring for the purpose of billing. Confidentiality of such
information shall be subject to the provision set forth herein.
14.03. The Franchisee may not engage in the sale or service
of privately-owned television receivers, nor require of any subscriber
the patronage of any person engaged in such sale or service business.
This shall not apply to the repair or adjustment of equipment which is
part of the system of the Franchisee. Nothing herein shall prevent the
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.
Franchisee from making necessary adjustments to a subscriber's television
receiver to insure proper operation under conditions of cable connection
at the time of installation or in response to a subscriber's complaint.
14.04. In accordance with 4 M.C.A.R. § 4.202B, the Franchisee
shall promptly conform with all state laws, rules and regulations regarding
cable communications, as well as with all federal laws and regulations.
The Franchisee shall, at all times during the life of this Franchise, be
subject to all lawful exercise of the police power by the Franchisor, and to
such reasonable regulations as the Franchisor shall hereafter by ordinance
provide.
14.05. The Franchisee agrees by the acceptance of this
Franchise that it will not at any time set up against the City in any claim
or proceeding, any condition or term of this Franchise as unreasonable,
arbitrary or void, or that the City had no power or authority to make
such term or condition, but shall be required to accept the validity of
the terms and conditions of this Franchise in their entirety.
14.06. Ordinance Nos. 51, 67, and 74 are hereby repealed.
14.07. Should any section or part of this Ordinance, for any
reason, be declared void or invalid, the remainder of such Ordinance
shall not be affected.
14.08. The City will deposit the annual franchise fee into a
special fund to promote and further the cause of public and educational
uses of cable communication. The City Council may, however, transfer
money from the special fund to the general fund in its discretion.
14.09. Any conflict between the provisions of this Franchise and
any other lawful exercise of police powers of any City shall be resolved
in favor of the City.
14.10. In case of any good faith dispute or question as to the
meaning, interpretation or application of any term, provision or condition
of this Franchise, Franchisor shall resolve such dispute or question.
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14.11. Franchisee shall, at all times, comply with all laws,
ordinances and regulations of federal, state and city government. If any
law, ordinance or regulation shall require or permit Franchisee to perform
any service or shall prohibit Franchisee from performing any service which
m ay be in conflict with the terms of this Franchise, then as soon as
possible following knowledge thereof, Franchisee shall notify Franchisor of
the conflict believed to exist between such law, ordinance or regulation.
If Franchisor determines that a material provision of this Franchise is
affected by such law, ordinance or regulation, Franchisor shall, after
conferring with the Franchisee, make a good faith effort to alter or repeal
any of the provisions of this Franchise to bring it into compliance. If,
however, such modification would materially frustrate the original tenets of
this Franchise, the Franchisor may terminate this Franchise. Franchisor
also reserves the right to terminate this Franchise and any right or
privilege of Franchisee hereunder if any provision of this Franchise shall
be finally adjudged by a court of law invalid or unenforceable, and if
such provision constitutes at that time a consideration m aterial to the
continuance of this Franchise. Franchisor, upon termination pursuant to
this section, may request removal of the System or notify Franchisee of its
intent to purchase it.
14.12. Required notices to the Franchisee shall be in writing
and shall be either hand delivered to the Franchisee, its employees or
agents, or mailed to the Franchisee by certified or registered mail at the
following address: 16900 Cedar Avenue South, Rosemount, Minnesota 55068.
Notices to the City shall be in writing and shall either be hand delivered
to the City Clerk or mailed to the City by certified or registered mail in
care of the City Clerk at the following address: P. O. Box M, Lakeville,
Minnesota 55044.
14.13. Effective Date. This Ordinance shall be in full force
and effect from and after its publication and approval by the Minnesota
Cable Communications Board according to law.
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Enacted and ordained into an Ordinance this ~fp~ay of
~F~ ~ A ~ 1982.
CITY OF LAKEVILLE
BY: l J/~.1~~~~E
o e ]ens Mayor ~
ATTEST:
~c
Patrick ~ c arvey
City Clerk/Administrator
The undersigned herewith accepts the terms and conditions
of Ordinance No. relative to the conditions and operations
of a cable Comm unications system in the City of Lakeville, Dakota County,
Minnesota, dated this ~ day of ~~~I` 1982. ,
METRO CABLE, INC. ;I
d
' as
is SI ~ ~ 'v
t
-36-
MARCH 4, 1982
OUBUC NOTICES
(Conbnued from Page Ihft'
PUBLIC NOTICE
enyo„,LAKEviul...4‘. i'''
DAKOTA COUNTY* Au"ruTE: s. '
rs-pinetAritil*I11"1"1"y intAt4i510-17parlit-g„ J:
' £'Ll'ije RULIS GP7417.....
4--..'CITY.0P :•-$4 AND.Two ▪ _,, , liteot..,,
. - ,lT3`..1m1R'f'City'ofI,or„:„.:•:;-:,„,;-
t*-,-•.., ':3(1'-',' of tha
' 41:ii ,cou4FtL,„.,.. „the,
iit,:. - cit.tlloig,DIFitunotlatheir ,C 4.08,!!„secrot_______.•,4,,tki.. Franchise,t▪ and: givenRr•
.4' I". ..''•:-puFFuw.iiek,.:y,9 :.g n.
OWti.'' 4. in- iFkw°r' theierniAAT have includeti2LTAvith`the
tionir -hen eat-inwilltense :jii:
va ' ' mod M -the present -- numbers .the
1 .- , ___. iii the pluraltxtwordtuber:
1 tegt,L-twrist;`*°f#t',tiinil4f-r- iikw01-.117nsw
lar
.11 te... th.number shall" in.---''ailitl'W. ipio71!,„,,,,
..igteli".7-:.-- ,''' "may" is permissive.
''.7 7 singular include "will" are not
iiiii4041:4:4`..,,'A'
• -x..t.'-•.',•'' -•
a•'..*.''''''..4:;:t....
1 4.4 ,:.8- !--,'''''''-'"'--
!..6,-4,. or',.-...-,;:-*''''''
-..,:_•",- ,•-•43r., ''''—'
AFFIDAVIT OF PUBLICATION
defined *ail be given their ,Ccmtmon and or-
dinary'tneaning.-
1.01; `:Board" thelkinnesatacabie
inunieations Board.
,1.00. f'channel”., is a ifz' Megahertz M11z
frequency band which incaba le of carrying
either one standard video signal, a number
of audio, digital or other ,non -video signals,
or some combination of such signals."
1.03. Oross Revenues" is any revenue
derived directly or indirectly by Franchisee,
its affiliates, ' subsidiaries parent and any
person in which Frinchtiete has a financial
interest of five percent or more from or in
connection with -the operation of the System
in Lakeville, ' including but not limited to,
basin Subscriber service monthly fees; pay
cable fees, installation '",and reconnection
fees, leased channel fees, converter rentals,
studio rental, production equipment and per -
Sooner,' fees land advertising ;7revenues.
Revenues derived by the Franchisee as a
result of '2.overall system' operations in es
Lakeville and other'citiescandtherefere;-riot s
directly attributable to payments made by O
Lakeville subscribers. shall be apportioned 11
according to the:ntimbet;'Oratibeeriberela he
each city. The term does net include any
taxes on services furnished by Franchisee 'a
sbli MINNESOTA )
) SS
agy of Dakota
IT!
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th1
LAY and DANIEL H. CLAY, being duly sworn, on oath say they are and
es herein stated have been the publishers and printers of the news -
Dakota County Tribune and have full knowledge of the facts herein
s: Said newspaper is printed in the English language in newspaper
umn and sheet form equivalent in printed space to at least 900 square
spaper is a weekly and is distributed at least once each week. Said
0 per cent of its news columns devoted to news of local interest to the
it purports to serve and does not wholly duplicate any other publica-
, made up entirely of patents, plate matter and advertisements. Said
ulated in and near the municipality which it purports to serve, has at
regularly delivered to paying subscribers, has an average of at least
total circulation currently paid or no more than three months in 'arrears
second-class matter in its local post -office. Said newspaper purports
s in the County of Dakota and it has its known offices of issue in the
ton, Rosemount, Burnsville, Apple Valley, and Lakeville established
ts regular business hours for the gathering of news, sale of advertise -
f subscriptions and maintained by the managing officer of said news -
in it's employ and subject to their direction and control during all such
hours and at which said newspaper is printed. Said newspaper files
• )ssue immediately with the State Historical Society. Said newspaper
h all the foregoing conditions for at least two years preceding the day
cation mentioned below. Said newspaper has filed with the Secretary
Psota prior to January 1, 1966 and each January 1 thereafter an affi-
yi prescribed by the Secretary of State and signed by the managing
wspaper and sworn to before a notary public stating that the news-
ewspoper.
.;;;; •••••
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1 I Hil-..- '0,), 7.;;..-..."...,..4,,.:-..:::;•••:.',..:.,,..,;',„„
tate on oath that the printed
s as a port hereof was cut from the
columns of said newspaper,
and published therein in the English language, once jameir-week-
1 and
day of
succeeviveronzetcs; that it was first so published
at- Ck 19 and was
published on every Thursday to and including Thursday
)y of 19 and that the following is a
Je lower case alphabet from A to Z, both inclusive, and is hereby ac-
ing the size and kind of type used in the composition and publication
..
4vit;
abcdefghiiklmnopqrstm w x y7
r".
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e this