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86-486 WHITE - CITV CLERK PINK � FINANCE G I TY OF SA I NT YA U L Coun il p� ✓��,� CANARY - DEPARTMENT r� BIUE - MAVOR File NO. i • Ordin�nce Ordi nce �10. l��oT Presente By , Referred To �l�t��r✓ Committee: Date � � �'—�`� Out of Committee By Date An ordinance amending Saint Paul Legislative Code, Chapter 430, pertaining to the regulation of cable communications service THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: Section 1. That Saint Paul Legislative Code Section 430.�J12 Subds. 6, 8, and 13 are amended so that the same shall read as f llows: "430 .�112. Definitions. Subd. 6. "Interactive channel" means a sign ling path provided by a cable communications system to transmit signals of any type from a subscriber terminal or other ori inati n o� int to another point in the cable communications system. Subd. 8. "Connection" shall mean the attachment f the drop to the first radio or television set or to an electron ' c terminal device or converter of the subscriber. COUNCILMEN Requested by Department of: Yeas Nays Drew Nicosia [n Favor Rettman ,. s�n.�nei Against BY So�nen Tedesco Wilson Form Approved by City Attor ey Adopted by Council: Date CertiEied Passed by Council Secretary By �� '� _ /,'�� By Approved by Mayor: Date Appro by Mayor for mi ioqrEo Council By By 1 , r � P�� y�� , . r � � � �� Subd. 13. "Gross revenues" shall mean all re enue derived directly or indirectly by the company , its affilie`tes , subsidiaries , parent , and any person in which the company has a financial interest, from or in connection with th operation of the cable communication system governed by t is chapter ; provided, however, all revenues shall include, but ot be liinited to, basic subscriber service monthly fees, fees f r programming offered on a per-channel or per-program basis, p y cable fee-s, installation and reconnection fees , leased channel fees , converter rentals, studio rental,�� production quipment and pe:Ysonnel fees, interactive and data/computer ser ice fees, a�d advertising revenues� and other. services offered ov r the system; , and that this shall not include any taxes on serv ' ces furnished .-- ,by the company herein imposed directly upon any subscriber or user by the state, city or other governmental unit and collected . by the company on behalf of said governmental unit. " � � • Section 2 . That Saint Paul Legislative Code Section 439. 14 is amended so that the same shall read as f ol lows : "430. 014. Requizement for certificate of confirmation, IrtEEBstate approval and compliance with all sta e and federal laW s. No person shall operate or participate in t e operation of a cable communication system within the city of Saint Paul without first obtaining a certificate of confirm tion from the �7�x�ese�a eab�e ee��t��ea�}exs �ea��ommissioner of Commerce of 2 _ �. - , T � C��--�G �'y�� . , r . . . /��G ,/ ��, / the State of Minnesota or other a enc or individua designated -. � state law and when so reguired bY state la , rule or regulation. Any cable communication system within the city of Saint Paul shall at all times comply with all �eq��e state laws and �eg��a��e�s e€ �l�e s�a�e a�,d �eele�a� ge�e�� e�i� e� a�� adx+}��s��a�}�e ageae�es �l�e�ee� �e� �a�e� ��z� eae �ea� a€�e� �ke�� g�e��ga�}e�rules regarding cable communicatio s not later than one ( 1) year after they become effective u:nles otherwise' stated and with all federal laws and regulations re rdin cable as they become effective." ' Section 3 . That Saint Paul Legislative Code Section 436.g1 is amended ' „ . so that the same shall read as follows : "436.015. Franchise: terms and conditians. A onexclusive 15 year franchise may be granted by ordinance to a cable communications company to construct and operat-e a sys em to serve . the city of Saint �Paul. The provisions of this� .chap er shall be i'ncorporated by reference into the franchise. T e city and company may agree to additional terms and conditio s as may be deemed necessary, providing that said terms and con itions are consistent with the provisions of this chapte� and applicable law. 3 � r � �V � �° y� � i � i . y /I �',{/ . //�Y / No franchise shall be awarded by the city which does not .� �eg��e ��,e €e��eN��+ {}} �#�e eefls��e�}e� e� a d}s��t��e�s s�s�e {��,� a�,� €eede� ea��es} ��e�g3�e�� a�� a�eas e� �ke e�� W�� ee �ea�s e€ ��e ��a�e�}se s�el��a�ee adeg �e��- {�} �FHe �e��e�Y e€ a� �eas� 3�d e�a��e�s �e sab e��be�et {3} �He ae�}�a��s� e� �He-Wa� ea�a�� S e��e�� e s�9�e��- _ �4} A s�s�ex� e�es�g� a�d ee�is��e��e� se �ka� ae�We�# e� �e�We��s se��g �es�de��a� a�d }�s�� }e�a� �se�s W�� aeee��eda�e }a�e�ae��e da�a ee�� a��easT a�d �ka� �ke �e�a� �e�We�# • ��a�sx��ss�e� �.��e �� be �ess � ��a� er�e-�e�� e� e seee��t ,' ��} ��ie g�e��s�e� e� �e�� de��ea�eel aeeess e a��,e�s �e�e eaek €e� g��}e� ge�*e��x�e��a�= ed�ea��e�a a�� ease� � �se} g�+�9 �ke �eg�e�,a� e�a��e� �e��ed ' �� es e� ��e � � ' P4��ese�a ea��e eex�x��i�e��e�s �ea�e�.-' ��'��e�T a�� e9}de�,��a� s��se��be�s W�ie �eee}�e a�� e� a�,� ga�� e€ ��ie �e�a� se��ees e��e�eel e� �ke s�s�e s�a�� a�se �eee��e a�� aeeess ekaxae�s e� a}} ��e�9 � se��}ee a� �e a�d��e�a� eka�ge �e� se��ee e� �r�s�a� a��e�� 6} A s�s�e� des�g� �ka� w�� aeeex�x�eela�e }ff+��aAeet�s �=dee ��a�s�x�ss�e�s e� a� �eas� eAe el� a�e� e€ ��e s��se��be� Ae�We�� e� eab�eeas� �e sega� �e a�el�et�ees �eea�ed #t� el�€�e�e�� geeg�ag�°e a�eas e� � e e}��t 4 - - . . �,,� � - �� , � . , . , ,�� } �ke ea��a�e e� a�� ?-eea� �e�e��eie� b�eadeas� s�a��er�s -� a�d e��e� ��ea�eas� s}g�e�s �eq�}�ed ��* ��e �EE� {8} A s�s�ex� des�g� a�ad xaa��e�,at�ee ��ae��ees ee��ag FEE �ee�i��ea� s�a�da�ds�- a�,d ��} A s�s�ex� des�g� H1�}e� e�a��es x��x�e�ga� ��}ee�s �e �x�g}e�eA� a� e�e�ge�ey a�e�� i��a a�e1�s a dfe� ��dee s}g�ia� ��a �s��es �ea Hk�ek We��d e�e� �de e � be s�ge��geeee� efl eab�e eas� g�eg�a�x�}�g= meet the minimum requirements set forth in Minneso a Statutes Section 238.884 attached hereto, as Appendix A and i cor orated herein. " � Section 4 . - ^ " That Saint Paul Legislative Code Section 4"30.621 is amended � so that the same shall read as follows : " 430 . 021 . Establishment. Within the e€� ' ee e€ ��e �+a�e�TDepartment of Finance and Management Services there shall be an office of cable communications. The cable co munications officer shall be appointed by the mayor with the co sent of the council and shall be in the unclassi�fied service f the �ity until the completion of construction of the cable system, at which time the position shall become classified con istent with civil service commission regulations and the offi e shall be located in the �Department of ee�►x��a}�� se��}ees: inance and Management Services. " 5 � � l?� � - �� : ° ' . �y�� Section 5. � That Saint Paul Legislative Code Section 43PJ.022 is amended so that the same shall' read as follows: " 430 . 022 . Office functions . The office shall be responsible for the administration of the cable co munications franchise and for the planning and developmen of ca�ble com munications services. The cable communication officer's duties and responsibilities shall include, but not be limited to, the following: �?} se��e as �e��e��ag x�e��e� e€ �ke ea��e ee� t��ea��et�s eex��ss=e�� {�} - ' � (1) Serve as liaison between the city, franch see, state �' and federal authorities concerned with cable communications ; . �3} � � � ' (2) Receive and investigate complaints concerning the operation of the cable communications syste ; �4� (3) Assure franchisee's compliance with all applicable ordinances and laws and upon determination of any violation of same, take all necessary and ppropriate action to enforce the appplicable law. 6 - - . , C`�� - L/y� _,_ /7��/ ��} (4) Monitor the franchisee's performance and herence to the terms of the franchise including, but ot limited to, construction schedule, installation po icy, rates, operational standards , maintenance, technical standards, system design, use of public wa s, service continuity and the provision of support an facilities for access and community programming ; {6} (5) Receive for review and evaluation all data and reports required of the franchisee and, where a propriate, forward such data to interested or af ected city departments; and ��} (6) Make such recomm endations and reports o the city council and mayor as may be deemed neces ary to the regulation and development of the cable co munications system. " Section 6. That Saint Paul Legislative Code Section 430.01 3 is hereby deleted in its entirety. 7 . � ��-- ��c� �� Section 7 . That Saint Paul Legislative Code Section 43�1.RJ32 is amended so that the same shall read as follows: "4301.032. Public notice. P4�x�� Public notice of any city public meeting relating to amendments to the ' franchise ordinanceT ep rformance evaluation sessions, hearin s at which adverse action m� be taken aqainst the comPa� o franchise renewal shall be by publication a� �eas� e�ee in a local newspaper of general circulation at least �et�fourtee days prior to the meeting, and posting at City Hall. a�dT eComme cing on the tenth day prior to the meeting , company shall otify its subscribers of the meeting by announcement on at least two channels of its cable communication system between e hours of 7 : 0�1 p.m. and 9 : P1P1 p.m. , for five consecutive days. Such announcement shall be made on the two local ori inati 'n or access channels of highest viewership on which such anno ncement is feasible. " 8 , . �� T�� Section 8 . That Saint Paul Legislative Code Section 430.035 Subd. 2 is hereby deleted in its entirety, and in lieu and in p ace thereof a new Section 430.�J35 , Subd. 2 is hereby adopted ! to read as follows: "430 .035 . Arbitration of disputes. Subd. 2. Procedures. Al1 disputes decided � rbitration shall be �ursuant to the �rovisions of the Uniform rbitration Act, Minnesota Statutes Sections 572.08 _ 572.30, except the �arties shall each, within 15 da�s of the notice of a demand, appoint one arbitrator who is experienced in cable co munications and not employed � or in a� manner affiliated with either city or com an . Arbitrators shall each agree upon the se ection of a third arbitrator, similarly qualified, within 15 da s' " Section 9 . That Saint Paul Legislative Code 5ectio 430 .0136 , Subsections ( 1 ) , ( 2) , ( 3 ) , ( 4 ) , ( 5) , (6 ) , ( 7) , nd ( 9) are amended so that the same shall read as follows: "4301.Q136. Penalties. The franchise shall pro ide for the deposit of a letter of credit to insure faithful per ormance by the company. For the violation of any of the following provisions of the franchise, penalties shall be charg able to the letter of credit and the company as follows: (1) For failure to complete system constl�uction in accordance with the construction plan pro ided in the 9 , � �,� ��. �� i�� franchise unless the city council specifica ly approves the delay by motion or resolution, ue to the occurrence of conditions beyond com pany's reasonable control, company s�a�� pa� $�� ge� da�* € � eae�i �a�T e� �a�� l�e�es�� e �e€�e�e�e� ee��es:m be fined as follows: (a) u� to $250.0P1 er d� for the first 60 days or part thereof, the deficiency continues (b) between 6�! days and 6 months, u� to 5�0.�1�1 �er d� or part thereof, the deficiency co tinues; (c) after 6 months, u� to $1 ,�001.�0 �er aY or part thereof the deficiency continues. (2) For failure to provide data, documents, reports, information or to cooperate with city during an application process or cable com munications system review, company shall pay $5�.010 per day f r each day, or part thereof, the violation occurs or co tinues. (3) For failure to test, analyze and rep rt on the performance of the system following a requ st pursuant to the franchise, the company shall pay o the city $5f�.0PJ per day for each day, or part thereo , that such noncompliance continues. (4) Forty-five days following adoption of a re olution of council determining a failure of company to omply with construction, operational, maintenance st ndards, or 1 Ql . , ��,�---- �� the offering, company shall pay to the cit $Sf�.P10 per day for each day, or part thereof , that such noncompliance continues. (5) For initiating or using a procedure or device for procuring information or data from a s bscriber's terminal, dwelling or business without the prior valid authorization of the affected subscriber as required by Section 430.043 , "Subscriber Privacy", t e com pany shall pay $50 per day for each day, or pa t thereof, the violation continues or occurs. (6) For selling, providing or otherwise making vailable to anyone any information about subscribers btained by monitoring transmission of any type of si nal from a subscriber 's terminal , dwelling or place f business without the specific written authorizat on of the subscriber as required by Section 43�1.044 "Prohibit Compilation of Subscriber Lists for Sale", he company shall pay $ 5 , �100 .Q1P1 for each such viol tion. In addition, the total amount of funds paid he com pany for this information shall be forfeited to he city by company. (7) For tapping , monitoring or for arranging to tap or monitor, or knowingly permitting the tapp ng of, any cable, line, signal, input device or subscr ber outlet or receiver for any purpose whatsoever w ' thout the 11 , , �� '� -��'� /7�G 5� specific written authorization of the su scriber or pursuant to court order, the company shall pay $10,0P10 per day for each day, or part thereof, th violation occurs or continues. (9) Exclusive of the penalties set out ab ve in this section, a violation of any provision of his chapter is by Saint Paul Legislative Code Section 1.4J5 deemed to be a misdemeanor. " Section 1P1. That Saint Paul Legislative Code Section 430.037 Subd. 1 is amended so that the same shall read as follows: "43P1. 037. Procedure upon determination of viola ion. Subdivision 1. Notice , remedy. Whenever the cable communications officer shall find that the company as violated one or more of the terms, conditions, or provision of Section 43A.036, a written notice shall be sent to the company by registered mail, return receipt requested, informing hem of such violation or violations. Such notice shall be entitled a "Violation Alotice". The com pany may remedy vi lations of paragraphs (1) through (4) of Section 43PJ.P136 withi three days of tender of the registered letter bearing the "Violation Notice". If the company fails to remedy the viola ion within three days after tender of the registered letter, pen lties shall be assesssed in accordance with the provisions in Section 430.P136:and subdivision 2 of this section. 12 . . C1.�- �� Violation of Section 43PJ.�136 , paragraphs (5) hrough (7) shall not be subject to remedy and shall be assesss d from the first day of occurrence. " Section 11 . That Saint Paul Legislative Code Section 430.043 is amended so that the same shall read as follows: "430.�43. Subscriber privacy. No signals, including signals of an interactive com m unications channel shall be transmitted from a subscriber terminal e�eeg� as eqt��e� �e ��e��de a se��ee a��l�e��ed ��* e��a�ee e� �l�e s� se��e�:for purposes of monitoring individual viewi� patterns r practices without the ex ress written ermission of the ubscriber. ------ —� ��-- _�_ PM_M�N � Neither the company, the city, nor any other p rson shall initiate or use any procedure or device for procuring information or data from a subscriber's terminals or terminal b any means without the prior valid authorization of the affected subscriber. Valid authorization shall mean written approva from the subscriber which shall not have been obtained from th subscriber as a condition of service, except in those situatio s in which authorization is needed for billing, and which may b revoked by the subscriber at any time: without �enalty o anY kind whatsoever. The request for such permission shall contained in a separate document with a prominent statement that the subscriber is authorizing the permission with full k owledge of its provisions. Such written �ermission shall not e tend lon er 13 , , �`/� ��-- �� i7�� than one (1) year; provided, however, that the subscriber shall have the o�tion to renew upon ex�iration. No enalt shall be invoked for a subscriber's failure to provide or renew such authorization. A��e� �l�e €��s� �*ea� e� at��ie��a��e a�� d�� l�e �ea�k e� �l�e �*ea� e� �ke a��l�e��a��ea=s ��a� ��T ��e eex�gaa� s�ia��T �e� eaek �*ea� ea�d at��l�s��a��e� � ' �� e��ee� w��l�e�� e�*eea��e�T �a�� a �e��ee �e eael� at��l�e��a st��se��e� �r�€e�� x� e� �e� e€ l��s e� ke� ��1�� e � ae#e sa�d a��e��a��ex �e� ��a�sa��ss�ea ��e� �ke st��se��e�'s �e�x��a�: �F�e a��ke��a��e� ska�� be �e�tsea��e a� a�� xe b�* �l�e s��se��be� w��e�� e�a��* e� aA� #�� wl�a�se �e�z Such authorization shall be required for each type or cl ssification of signals transmitted from a subscriber terminal . " Section 12. That Saint Paul Legislative Code Section 43�.�44 is amended so that the same shall read as follows: � "430.P144. Prohibit coffipilation of subscribe lists for sale. The com�anY shall not collect , com�ile or retain -- -- --- --- -- --- -- ----- subscriber data exce�t as necessar� for internal business purposes. Neither the company, the city, nor any of heir agents or employees, shall, without the specific written a thorization of the affected subscriber , provide data iden ifying or designating any subscriber: to an� art other t an to the com�a� and its em�l�ees or a�ents for internal bu iness use. This shall include, but not be limited to, lists of th names and 14 . . C,� �� ir�� addresses of such subscribers or a� lists that i entifY the viewin habits of subscribers. Written permissi n from the subscriber shall not be required for the systems conducting systemwide or individually addressed electronic swe s for the pur ose of verifyin� systen� inte r� ity or monitor n for the purpose of billing. Confidentiality of such informat on shall be subject to the �rovisions of this section. A��* �a�a a��ke��se� st�a�� He �ade a�a��a��e �ge� �eq�es� �e �l�e at��e��$�r�� s��se��e� �� t�sde�s�at�ela��e �ask}eaT ��e��d}x� s�ee ��ea��eA e� �l�e g��geee €e� wt��el� ��e �a�e��aa��e� �s �e�� ga��e�e�l aad �e wl�s� a�� e� Wl�a� �ee ��e �a�e�x�a��e� �s �e be se�d:" Section 13. That Saint Paul Legislative Code Section 4301.P15 is amended so that the same shall read as follows: "43f�.051. Payment. Company shall pay a franc ise fee of five percent of gross revenues.- as compensation to he city for use of u� blic ri�hts=of-waY and for the adminis ration and regulation of the franchise. Within sixt� (60) a s of the effective date of the franchise ordinance, the co pany shall initiate franchise fee payments to the citY at the ate of two hundred thousand dollars ($200 , 000. 0��) for the irst Year ($50,P100.�0 per quarter) and a minimum rate of two h ndred fifty thousand dollars ($25P1,�0PI.�P1) each year ($62,5P10.P10 er quarter) thereafter, until the Year in which the compute franchise �aYment first exceeds the amount of two hundred fif thousand 15 , , ��- �� I/�� y dollars ($250,4lP10�.00) . These �a�ments are to be co sidered in advance of the franchise fees that exceed five hund ed thousand dollars ($500 , PJ0�l. f��)_ Such advance fees sh 11 not be recoverable from the city in the event that the a �regate of future franchise fees does not exceed the total am unts of the advances, �rovided however, that the citY shall not re uire the comPanY to violate federal or state law or FCC ec ulations. Interest earned � the citY on such advance ��ments hall not be considered a part of the franchise fee. However, sh uld the FCC or other federal or state regulatory a enc determi e that such earned interest is in excess of the franchise fee, th city shall deduct said amount from the next franchise fee ment due. Payments shall be made on a x�ex�k��* quarter� asis. The installment payment for each quarter shall be due � e� He�e�e �ke �as� �a� e� �l�e €e��ew��g �s��k no later than 4 daYs after expiration of the guarter when due and shall be made to the city department of finance and management services." The City shall use all advance franchise fe s onl� for cable-related purposes. All other franchise fees c llected � the Ci� shall be utilized �rimari� to sup�ort the City's administration of the franchise ordinance and the lannin� and development of cable communication services and sec ndaril for dePosit in the general fund or for other such uses as s ep cified � the City• 16 , . �;,�-��_ ��3 /�3�� Section 14 . That Saint Paul Legislative Code Section 43�.061 is amended so that the same shall read as follows : "430.P161. Rates e�el�saAee. The ci� shall r ulate all rates and char�es �ermitted bY state and feder l laws in ---- — — -- ----- — — — -- -- conformity with Section 623 of the Cable Communica ions Policy Act of 1984. The city shall initially set by ordina ce rates in accordance with the successful applicant's proposal or a cable com munications franchise. The city shall also approv a schedule for maximum rates. The initial rates shall not be c anged �r�� s�el� ��e as ��e ee�►pas�* ee�xg�e�es ee�s��e��ea: be ore January 1 , 1987. The procedure to change subscriber rates hall be in accordance with Section 43�1.4163, and increases in rat s shall be based upon the concept of fair and reasonable ra es to both company and subscribers which in the aggregat meet all applicable costs of service provided by company inc uding fair return on invested capital , assuming efficient and economical management. Residential subscriber contracts, if a y, may not exceed 12 months unless after 12 months the contract may be terminated without penalty at the option of the subsc iber." Section 15 . That Saint Paul Legislative Code Section 430.(�62 is amended so that the same shall read as follows: "430.062. Request for rate adjustment. For are s in which state and federal law �ermit rate and char�e regula ion b� the 17 , �� 3�y city,Ecompany may make application for a revision of the rate schedule at any time after �l�e ee�pa��* Has ee�g�e�e�7 ee�s��e�}s�: December 31, 1986. " Section 16. That Saint Paul Legislative Code Section 43PJ.06 is amended so that the same shall read as follows : "430.P163. Procedure for rate adjustment and earing. An application for an increase in the schedule of ra es shall be filed in accordance with procedures established in Section 430.071. The application shall be supported by statistical and other proof indicating that the existing rate is in dequate and unreasonable and that the proposed increases therein re required to enable the company to render service to f lfill its obligations under this chapter and to derive a reaso able profit therefrom. The application shall also include a s atement of facts, opinions, substantiating documents and exhibit supporting the change requested. The com pany's petition for a rate increase shall include the following financial reports which shall reflect the o erations of the Saint Paul system only: (1) Balance sheet; (2) Income statement; (3) Statement of sources and applications of fu ds; (4) Detailed supporting schedules of expens s, income, assets, and other items as may be required; and 18 . . �,�-�-d� ��'� i�'.��/ (5) 5tatement of current and projected subs ribers and penetration. The company shall answer all city requests for i formation. The company's accounting records applicable t the cable system shall be available for inspection by the ity at all reasonable tim es. The city shall have access to records of financial transactions for the purpose of verifying urden rates or other indirect costs prorated to the Saint Paul operation. The documents listed above shall include sufficient d tail and/or footnotes as may be necessary to provide the ci y with the information needed to make accurate determination as to the financial condition of the system. Al1 financial statements shall be certified as accurate by an officer of the c m pany. The company shall bear the burden of demonstrating th justness, reasonableness and accuracy of the costs. The council shall consider the following factors in approving or disapproving the application: (1) the ability of the company to render syst m services and to derive a reasonable profit therefr m under the existing rate schedule and under the pr posed rate schedule; (2) the revenues and profits derived from syste services; (3) the efficiency of the company; (4) the quality of the service offerec3 by the c mpany; (5) the original cost of the system less deprec ation; 19 ��° �il�'� , . /�J� `/ (6) a fair rate of return with respect to he cost of borrowing and the rates of return on invest ents having similar risks to that of cable communicatio s; (7) the extent to which the company has adh red to the terms of this agreement; (8) fairness to city residents, subscribers and users; (9) capital expenditures by the com pany i providing updated technology and services to subscrib rs; and (1(�) such other factors as council may deem rele ant. The council will not consider any valuation ba ed upon the franchise right or the company's goodwill. Neither he value of the franchise nor the value of the company's goodwi 1 shall be amortized as an expense nor shall a return be pa d on them. Furthermore, the council will not consider any ra e increase application based, in whole or in part, on incr ased cable com munications system value due to any type of ransfer or sale. Upon receipt of a request for increases in rate under this section, the city shall have 30 days within which t determine whether it wishes to review more fully the request f r increases in accordance with the procedures for rate studies nd hearings set out in Section 430.f�71. In the event that the co ncil takes no action within 30 days, sa��l �a�es sl�a�� eee�te e� ee��e: the com�a� may file in the office of the ci� clerk an the office of cable communications a new or amended rates sch dule which 2�! � . (%� � -�,�� r7�� shall be effective and m� be charged on the tenth (1 th) d� (or such later date that the com�a� shall desi�nate on its filing) after its filin� and shall continue in effect until a �roved or denied � resolution or until deemed approved urs ant to the terms of this ordinance and the charter, which charte requires a �ublic hearin after pro�er notice or Pursuant to ap�licable state or federal law. Changes in rates taking place with or without co ncil action shall supersede the rates set out in the ordinanc initially setting forth rates after their effective date. Th city clerk shall prominently post a detailed listing of current ates. Nothing herein or within this chapter shall limit the authority of the city to regulate any rate when such regulation is not specifically prohibited or preempted by fede al or state law or regulation. " Section 17 . That Saint Paul Legislative Code Section 43�1.P1 1 is hereby deleted in its entirety and in lieu and in place th reof a new Section 43P1.PJ71 is hereby adopted to read as follows: "43�l. f�71. Modification of franchise obligation. A. Procedure. Following the adoption and acceptance of t e franchise and exce t as otherwise specifically rovid d herein or in the franchise ordinance, all a lication � company for a modification of franchise obligations shall be 21 . . C��- ��; �� made anc:, rp ocessed in accordance with th followin4 procedure: l . If com an seeks such a modificatio , it shall file an application for modification f franchise obligation in the offices of cable co munications and of the city clerk. 2. The ci� clerk shall place the a��li ation uPon the next available cit council a enda 3. The citY council shall refer the a� ication to committee. 4. At least 20 but not more than 30 da�s after — — ---- -- -- --- — -- — — --- referral to committee, durin� which time staff shall have reviewed and provided the ouncil with a written evaluation, the committee sh 11 consider the a lication. U on staff re uest, the --- —��-------- —�-- ----- -- --- --- committee chair, m� at his or her iscretion, extend staff's reporting deadline � n more than 1 g d�s. 5. No later than 60� daYs after said a 1 ' cation has been filed, the committee, using the s andards set forth in subsection B of this section, shall make a recommendation to the full c uncil for — -------------- -- --- ---- — ----- --- consideration at the next schedul d council ------------- -- --- ---- ------- — ------- meeting. 22 �";F �� -�� , � �'..�G,S/ 6 . Using the standards set forth in subseetion B of this section, the council shall a� r ve or de� the requested modifications within 120 days of the filing of said a��lication. Such 12�1 d� period m� be extended � mutual agreement of the company and the city• Should an extension be reed u on, the chair of the com mittee consi erin� the — — — — -- — -- — --- ----- ---- — — application m� ad 'ust the committee and staff's timetable accordin�l� However, w atever the extension m� be, the committee shal refer the ap�lication back to the council at le st 3P! d�s before the final d� for approval or d nial. B. Standards. l. During_ the �eriod a franchise is ' n effect , company m� obtain from the city modifications of the requirements in such franchise -- a. in the case of a� requirement for facilities or e ui ment, includin�c public, ducational or overnmental access faci ities or -- �----------- ------ --- ----- -- e ui ment, if the franchisee de onstrates that (1) it is commercially im rac icable for the franchisee to com�ly. ith such — — --- — --- -- — --- --- 23 , . �y/c �^ - �� /7�...��5< reguirement ; and ( 2) the �ro sal bY the franchisee for modificatio of such ---------- --- ----------- -- ---- re�uirement is a��ro�riate ecause of commercial impraeticability; or b. in the case of anY such re�uirement for services, if the franchisee demon trates that the mix , �ualitY, and level f services required � the franchise at the ,time it was c.�ranted will be maintained iter such -- — — ------- -- --- modification. 2. Com�a� ma�r not obtain modification under this section of a� requirement for servi es relating to public, educational or governmental access. 3. For ur oses of this seetion , the term — --- �--�---- -- ---- ------- --- ---- 'commercially impracticable' means wit respect to an requirement applicable to com an , that it is commercially impracticable for com an to comPly with such reguirement as a result of a chan�e in conditions which is beyond the contro of company and the nonoccurrence of which w s a basic --- --- ------------- -- ----- — — — ----- assumption on which the requirement wa based. 4. Notwithstanding subsection l, company a , upon 3f� d�s' advance notice to the citY, rearran�e, re lace, or remove a particular ca le service required � the franchise if -- 24 . , �'r= � - �� l?�'�� a. such service is no lonqer av ilable to — --- ---- -- -- — -- — --- — -- company, or b, such service is available to c m any. on1Y upon the Payment of a royalty re uired under section 8P11 (b) (2) of title 17, United States Code, which company can document - (i) is substantially in excess o the amount of such ��ment re uired on the date of the com�an 's offer to ovide such service, and (ii) has not been s�ecificallY ompensated for throu�h a rate increa e or other adjustment; 5. Notwithstandinq. subseetion 1, com a y m� take sueh actions to rearranqe a �articu ar service from one service tier to another, o otherwise offer the service, if the rates for all of the service tiers involved in such acti ns are not subleet to reg.ulation under section 623 of the Cable Communications Policy Act of 198 . " 5ection 18. That Saint Paul Legislative Code Section 430.08 , Subds. 2, 3 , 5 , 6 and 7 are amended so that the same shall read as follows: 25 , C�� - �� i73�� "430.081. Termination and forfeiture. Subd. 2. No fault of company. The foregoin shall not constitute a major breach if the violation occur but it is without fault of the company or occurs as a result of circumstances beyond its reasonable control. Ci cumstances beyond the control of com�anY shall include, but not be limited to, acts of God; strikes, lockouts or other labor di turbances; unavailability of labor or materials; failure of oth r utilities to perform walk-out and make rea� and to locate nder round utilities in a time� manner; orders or restraints of a� kind of the government of the United States or the State of innesota or their respective departments, aqencies or officials r an civil or militarY authoritY; insurrections , riots ; landslides , -- ----- -------- ------------ — -- -- — ---- earthquakes, fires, storms, droughts, floods; x lp osions; breakage or accident to machinery, transmission i e or canals; or a� other cause or event not reasonably within th control of com�anY and not �roximatelY caused � its negligence. Company shall not be excused by mere economic hardsh p, nor by misfeasance or malfeasance of its directors, officers or employees. Subd. 3. Demand for compliance; notice of inten to request termination. �l�e e�� a� �a#e a w�}��e� e7e�ax� �� e��s�e�ed �a}�T �e�� eee�p� �eq�es�e�T �l�a� �l�e ee�gaa�* es�a �� w��k a�� st�eH g�e��s}eaT �a�e� e�ele�T e� �e�e��aa��e� ��de� e� g��s�a�� e �k�s ��a�e�se: S�ek r�e��ee sl�a�� He ea�}��ed a '�e��e}��e 26 . . �.,C- ��- �� i13�y aad �e�xt}�a��e� P3s��ee�: �� ke �*}e�a��eA H�* He ee�gaa� eeA�}aaes €e� a pe��ee� e� 3� da�s �e��ew�� s�el� w� ' ��ex demat�� w��l�e�� w��eA g�ee€ �ka� �l�e ee��ee��re ae�}ea I�a Hee� �a#e� e� �s �e}r�g ae��e��* a��l e�ged��et�s�y g��st�ed� � e e�� nay g�aee �ke �ss�e e� �e��xa�}ea e� �l�e €�a�eH}se l�e� �e �l�e e}��* eet��e��: �ke e��* ska�� ea�se �e He se��ed t�ge� e��aa�T a� �eas� �8 �a�s ��s� �e �ke ela�e e€ sc�ek ee�r�e�� ee��gT a w��eA ae��ee e€ }a�e�� e �eq�es� s�e�i �e��+��a��e� r�d �ke ��ne a�d ��aee e� �l�e �ee��g: ��}e �e��ee ska�� He �se� s€ �He xtee�� a�el �ss�e w��el� eet��e�� s �e eeas�e�e�: I the event that the cit� determines that the com�a� has su stantially violated a� �rovision of the franchise, a� rule or regulation promulgated pursuant hereto or an applicable feder 1, state or local law, the cit shall make a written demand, b registered mail, return receipt requested, u on the comPany, th t it remed such violation and that continued violations m� b cause for termination. The city shall give the com an thir {3P!) days after service of the aforementioned notice to orrect the violation. If the violation, breach, failure, refusal or ne lect is not remedied within thir� (3A) days following such wri ten demand and if there is no written rp oof that corrective act on has been taken or is being actively and ex editiously ursu d, the city shall lp ace the issue of termination of the franchis before the city council. 27 . . C,�� J 7�� A public hearinq shall be held and the com a shall be provided with an opportunity to be heard upon writte notice, � registered mail, return receipt requested, to the co an of the cause for termination, the intent to terminate and he time and lace of said ublic hearing. Subd. 5. Council determination; period for com liance. If the city council shall determine the violation by the company was the fault of company and within its control , the city council may, by resolution, declare that the franchise of he company shall be forfeited and terminated unless there is compliance within such period as the city council may fix, suc period not to be less than 60 days, provided �e egge��}�� e� ee�►g��asee �eee7 �e ��a��e� €e� ��a�� e� ��s�eg�eset��a��ea: howev r, that the council m� not �ive com�any a� opportunitY to c mP1Y where fraud and/or misrepresentation has been alleged and oved to the council's satisfaction. Subd. 6. Council may terminate franchise. T e issue of forfeiture and termination shall automatically be p aced � the cit clerk upon the city council agenda at the expir tion of the time set by it for compliance. The council then ma terminate the franchise forthwith upon finding that company h s failed to achieve compliance or may further extend the pe iod in its discretion. 28 . , C,��-�� Subd. 7. Aggea�: �t� �l�e ese�� e�� est��e�� e� ��a�es �ke ��ar�el��seT ��e ee�gaa� sl�a�� l�a�e �ke s�a��e�y ge�� be��}�� e �a� ae�� e��ew�� l�e da�e �ke eet�ae�� e� �aa�es �He ��aaek}se w��l�� wl�}ek �e ��e aa a�sgea� w��k �ke P4}s ese�a ea��e ee�t��r��ea��e�s �ea��: B��a� s�ek ge��ed aa� �� ke �ea�e� �e�e��es �He aggea�T }� aa apgea� �s �a#e�� ke ��a el��se ska�� ex�a�a }� ��} €e�ee a�� e��ee�T �a�ess �ke �e�x� �l�e�ee� sseae� e�g��es: Judicial proceedin . In the event the c t council terminates the franchise, the comPany shall have th statuto� ep riod of 120 days after receiving notice of terminat on in which to commence an action. During such period and unti a court of com�etent Zurisdiction has decided the matter and t e time for a eal has elapsed, the franchise shall remain in fu 1 force and effect, unless sooner terminated or expired and not renewed in accordance with law." Section 19 . That Saint Paul Legislative Code Section 43PJ.082 is hereby deleted in its entirety and in lieu and in place th reof a new Section 430.RJ82 is hereby adopted to read as follows: "430.082. Franchise renewal. Subd. 1. During_ the 6 month period which be i s with the 36th month before expiration of the franchise, the citY shall commence proceedings which afford the public in th franchise area appropriate notice and participation for the ur ose of: 29 li _�, _ C�O � �� 3 �5� (1) identifYin�c the future cable-related com unitY needs and interests; and (2) reviewinq the performance of the com an under the franchise during the then current term. Subd. 2.A. U�on com�letion of Proceedings und r subd. 1 of this section, and if it seeks renewal of the fra chise, the com�anY may, on its own initiative or at the reguest f the cit , submit a rp oposal for renewal. Such pr`o�osal must be filed in the offices of cable communications and of the citY clerk no later than 10 days following the completion of roce din s under subd. 1, which date shall be specified � council res lution. B. 5ub '�ect to the rovisions of Section 624 f the Cable Com munications Poli� Act of 1984 , the �ro op sal shall contain such materials as the city m� require, including o osals for an upgrade of the cable system. Subd. 3. During the 4 month �eriod which begins on completion of roceeding under subd. 1 of this s ction, the council shall review and evaluate company's erform nce and its renewal �roposal. Exce t as otherwise specifical provided herein or in the franchise ordinance, such review an evaluation shall be conducted in accordance with the following ocedures : 1. Once a renewal proposal has been filed, th city clerk shall �lace it upon the next available c ' t council agenda. 30 . � c�=-��—�� 2 . The cit council shall refer the proposal t eommittee. 3. At least 20 but not more than 40 d� after referral to committee, durin which time staff shall h ve reviewed and provided the council with a written eva uation, the committee shall consider the renewal ro osal. Upon staff request, the committee chair may, a his or her discretion, extend staff's re�orti_ng dea line � no more than 10 days• 4. No later than 3 months after completion of proceedings under subd. 1 of this section, the committe shall make a recommendation to the full council for c nsideration at the next scheduled council meeting. 5. Within 4 months of com 1� etion of procee ings under subd. 1 of this section, the council shall ither renew the franchise or issue a �reliminary asse sment that the franchise should not be renewed. Subd. 4.A. If the Gity issues a preliminary ass ssment that the franchise should not be renewed, at the re est of the com an or on its own initiative, the cit shall ommence an administrative proceeding presided over � a hearing examiner to consider whether 1. the com�an�r has substantiall�r com�lie with the — --- -- -- -- --------- -- --- --- material terms of the existin franchi e and with applicable law; 31 � , � d�n ._ �O � /7.3��/ 2 . the quality of the company's service, incl din signal quality, response to consumer complaints, and billing practices, but without regard to the mix, guality, or level of cable services or other services ovided over the system, has been reasonable in light o communi� needs; 3. the company has the financial, legal, an technical abilit� to provide the services, faeilities, and equipment as set forth in its proposal; and 4. the eompany's proposal is reasonable to mee the future cable-related com muni� needs and intere ts, takin into account the cost of ineetin� such needs and --- ------- -- -- — — --- --- --- — — — interests. B. In a_ny �roceeding under A of this subdi ision, the com�any shall be afforded ade .c�uate �ublic notice. he com�an and the citY shall be afforded fair o��ortuni Y for full --- --- — — — --- — -------- --- -- --- �artici ation , includin the ri ht to introduce evidence ------�----- --------� --- --�-- -- ------- -------- (includi_ng evidence related to issues raised in the proceedin� under subd. 1) , to reguire the �roduction of evide ce, and to guestion witnesses. A transeript shall be made f a� such proceeding. C. At the completion of a Qroceeding under ubsection A of this subdivision, the cit shall issue a writt n decision granting or denying the pro osal for renewal bas d u on the 32 , . C�=�� -�� record of such Qroceeding, and transmit a co�� of s ch decision to the company. Such decision shall state the reason therefor. D. A� denial of a �ro�osal for renewal sh 11 be based on one or more adverse findings made with respect to the factors described in sub�aragraphs (1) through (4) of subs ction A of this subdivision, pursuant to the record of the roc edin under subsection A of this subdivision. The city m� not b se a denial of renewal on a failure to substantially co� with he material terms of the franchise under subsection A(1) of this subdivision or on events considered under subsection A(2) of this subdivision in anY case in which a violation of the franchise o the events considered under subsection A(2) of this subdivision occur after December 31, 1984 unless the cit has provided the co pany notice and the opportunitY to cure, or in a� case in hich it is documented that the cit� has waived its right to ob ect, or has effectively acquiesced. Subd. 5. For p,urposes of this section, the ter franchise ex�iration means the date of the expiration of the erm of the franchise as provided in the franchise ordinance. Subd. 6. Notwithstanding the �rovisions of sub ivisions 1 through 5 of this section, the com an m� submit a ro osal for the renewal of a franchise �ursuant to this subdivi ion at anY time, and the cit� may, after affordin�c the �ubl c ade uate notice and opportunity for comment, rg ant or deny s ch proposal at a� time (including after proceedings pursuant to his section 33 , �.�--�� - �� r 7..�10� have commenced) . The �rovisions of subdivisions 1 hrou h 5 of this section shall not � to a decision to rant or de� a proposal under this subsection. The denial of a rene al pursuant to this subdivision shall not affect action on a rene al proposal that is submitted in accordance with subdivisions 1 hrou h 5 of this section. Subd. 7. U�on the rg antinc� of a renewal of franchise pursuant to this section, the citY and the com�a� s all submit to the Commissioner of Commerce documentation certif in that the franchise and the process followed conform to state law. While the com missioner of Com merce is reviewing a certificate --- ------- ---- — ------ -- -- -- — — --------- concerning a franchise renewal and during a� a eal of the Commissioner's decision the com�a� shall be rmitted to continue o eration of the affected cable system un ess sooner terminated in accordance with law. Subd. 8. In the event the cit� makes a final d cision not to renew the franchise, the compa� shall have th statutory �eriod of 120 daYs after receiving notiee of the final -- — — — --- -------- ------ -- --- ----- determination in which to commence an action. During such eriod and until a court of competent jurisdiction has ecided the matter and the time for appeal has elapsed, the fran hise shall remain in full force and effect, unless sooner te minated in accordance with law. 34 � � G� �Lr - �f c7'!LT `�...�� 7 Section 20 . That Saint Paul Legislative Code Section 430.083 Subd. 1 is amended so that the same shall read as follows: "4301.P183. Right of municipal acquisition. Subdivision l. Right of first refusal; value. n the event the company forfeits or upon revocation or other te mination of the franchise pursuant to provisions of this cha ter or the franchise ordinance or at the normal expiration of t e franchise term, city shall have the right of first refusal, di ectly or as an intermediary, to purchase the franchised cable c mmunication system. �ke �a��e e� �l�e €�aaek}se s�a�� l�e �l�e a��e a�e e� �l�e �eg�aee�te�� a��e e� �aa��e asse�s e€ ��ie €�a�e �se� ea��e ee��ea��e� sys�e�: '-'�eg�aee�e�� aa��e'-' ska�� be el �e��Aee1 1�� e t�a��-�� aee �e�l�e�: If the cit elects to urchase the s stem at the normal -- -- --�' ---- — �------ -- -�-'---- — -- -- expiration of the franchise term, the value of the fr nchise term shall be the fair market value as an ongoing busines concern of the system as determined � a ap nel of three (3) ' nde�endent appraisers agreed u on � the cit and the com an . Should city and com�an� fail to a�ree upon the selection o three (3) independent appraisers, each shall select one a rais r. The two (2) appraisers so selected shall then select a thi d. If the cit elects to urchase the s stem in the event of orfeiture, ��' __ — �—_--- --- -`�--- -- --- -- - — termination, or revocation rp ior to the normal ex i ation date, 35 . �� ' l-3�y the purchase rp ice to be aid � the cit shall be t e com an 's ca�italization cost less de�reciation. "Ca italization cost" shall mean the monies invested for tangible assets, xclusive of intangible assets such as goodwill or value of the fr nchise. In the acceptance of a franchise, company expr ssly waives its rights, if any, to relocation costs that might otherwise be provided by law. The date of valuation shall be no earlier t an the d� followin� the date of such forfeiture, term nation or — — — --- ---- — --- -- ------ — — --- — revocation. " Section 21. That Saint Paul Legislative Code Section 43P1.08 is amended so that the same shall read as follows: "430.085. Abandonment or transfer. Subdivision 1. Abandonment. Notwithstanding th provisions of the franchise, the company shall not abandon any cable communication service or any portion thereof without aving given three months' prior written notice to the city.ar�d � e P4��r�ese�a ea��e ee��t�a�ea��er�s Hea�� The company shall not bandon any cable communication service or any portion ther of without compensating the city for damages resulting to i from such abandonment. For purposes of this section, "service" shall mean the agqregate cable communications system. 36 , � � �� '�� /7�G°�% Subd. 2. Transfer. (1) The franchise shall not be assigned or transferred, either in whole or in part, or leased, sublet, or mortgaged in any manner, nor shall tit e thereto, either legal or equitable or any right, ' nterest or property therein, pass to or vest in any pe son without the prior written consent of the city council: �ke ��egese�l ass��r�ee ��s� sl�ew ��aa�e�a� �esge s��}��* as �e�e�xt�ae� b�* �ke e�� ax� �t�s� a��ee �e s�g�� w��l� a�� p�es�s�e�s e� �ke ��a�ek�se: , whie shall not unreasonabl� be withheld, and in com iance with applicable state rules, prov�aea howev r, that no authorization of the council shall be re u ' red for an mortgage, led e or other encumbrance of th s franchise ordinance or the company's cable system as ecurit for financing purposes. (2) The company shall promptly notify the ity of any actual or proposed change in, or tran fer of , or acquisition by any other party of, con rol of the company. The word "control" as used he ein is not limited to major stockholders, general p rtners and limited partners, but includes actual wor ing control in whatever manner exercised. Every chang , transfer, or acquisition of control of the company sh 11 make the franchise subject to cancellation unless a d until the 37 ' � ��!/�''� T U� �� city shall have consented thereto, which onsent will not be unreasonably withheld. For the purpose of determining whether it shall consent to uch change, transfer, or acquisition of control, t e city may inquire into the qualification of the rospective controlling party, and the company shall assist the city in any such inquiry. (3) The consent or approval of the council to ny transfer of the company shall not constitute a waive or release of the rights of the city in and to the streets , and any transfer shall , by its terms , be expressly subordinate to the terms and conditi ns of the franchise. (4) In the absence of extraordinary circumstanc s, the city will not approve any transfer or assign ent of the franchise prior to substantial completio of �stem construction of proposed system. (5) In no event shall a transfer of ownership o control be approved without successor in interest becoming a signatory to the franchise agreement. " Section 22. That 5aint Paul Legislative Code Chapter 434! i amended by adding a new Section 430.�186 which shall read as foll ws: 38 . , ��' ��,� - ��'� /�7..��'� "430.�l86. Removal of cable equipment u on ter ination or _ forfeiture. `, � Subdivision l. Rem val. Upon ter nation or f rfeiture of — —�— �, — — a franchise, the com an shall remo�e its cable, wires, and appliances from the stree s, alle s and other Pu lic �laces within the franchise area i the _it� so requests in writing• ��, 5uch request shall be served u n:�the company's local business � � r_e�istered mail , return recei�t eguested, and sh 11 give the — — --, � e� company a reasonable ep riod of;= time o effectuate suc removal. Subd. 2. Failure to re�tiove. Sho d company fa 1 to remove the aforementioned equipme�it as requeste�� the ci , the city shall have the right to m�ke such removal _ � the ex ense of the com�a� and the comga��shall, u on written _ mand, �� to the f � �� — cit the cost of such w rk done or performed � t it " — — ' � Section 23 . This ordinance s all take effect and be in forc th rty (30) days from and after �ts passage, approval and public tion. t d I i � 39 WHITE - CITV CLERK PINK - FINANCE GITY OF SAINT PAUL Co ncil (y//y // CANARV� DEPARTMENT FII NO. -W � ��r BI.UE - MAVOR • n -/ Ordin�nce Or inance N 0. ��.3lof� Presented By Referred To Committee: Da e Out of Committee By Da e "430.086. Removal of cable equipment u o termination or forfeiture. Subdivision 1. Removal. U on termination or forfeiture of a franchise, the com an shall remove its c ble wires, and appliances from the streets, alleys and oth r publie places within the franchise area if the eity so re u sts in writing. Such request shall be served u on the company's ocal business � registered mail, return receipt requested, an shall give the company a reasonable eriod of time to effectuat sueh remoual. Subd. 2. Failure to remove. Should com a �ail to remove the aforementioned equipment as requested � th city, the city shall have the right to make sueh removal at th expense of the comPang and the com an shall, u on written de andL Pay to the city the cost of such work done or performed � he eity. " Section 2�. This ordinance shall take effect and be in orce thirty (3g) days from and after its passage, approval and pu lication. COUNCILMEIV Requested by Department f: Yeas Nays Drew N��os�e In Favor — Rettman s�.�'�� Against BY Tedesco Wil�en� Adopted by Council: Date �V� � 7 ��vu Form Approved by City At rney B .%2u,� i8. � Certified a s Cou � S t y Y By Approved b Mayor te �° " �� Approved by Mayor for Sub ission to Council By By p��s}�Ep �iUN 2 81986 39 - �':t�f ° �q—y0 C6 �, . ' � �..�� . �r__ � � ��' /7�� .F..��—'�� . � �0y��T� �.; '� �1jµ CITY OF SAINT PAUL ; yG OFFICE OF THE CITY ATTORNEY r� iiii�i ii ii �� ar� „E EDWA D P. STARR, CITY ATTORNEY �`rr i�a• rS r��\� 64 City Hall, Saint Paul, Minnesota 55102 612-298-5121 GEORGE LATIMER MAYOR May 16 , 1986 i� C�� l� Y 161986 M E M O R A N D U M COUNCIL EMBER KIKI SONNEN T0: Councilmember Kiki Sonnen 722 City Hall FROM: Jane A. McPeak � Deputy City Attorney RE: Cable Ordinances In preparing for your use an annotated copy of propo ed amendments to the cable franchise ordinance, I discovered tha the section dealing with penalties has not yet been amended. I want to bring this to your attention immediately, because when distributed the annotated copy of proposed amendments to the ca le regulatory ordinance, I indicated that those changes would ring it into conformity with the franchise ordinance (see attac ment) . This is incorrect because those franchise amendments ave not yet been adopted. I apologize for the oversight and s ill recommend the penalty provisions as proposed. JAM: j r Attachment cc: Members of the City Council � C/'✓�j- '�� 7�� t I C.lMt'Cry`V1�t/� "�.o ��-�- vY�'��:�'.,.G-,:,. ,` Section 1Q. �� , � + ' �u�. - That Saint Paul Legislative Code Section 430 .636 , Subsections (1 ) . (2) ► (3 ) . (4 � � �5� ► � 6� � (� ) ► an (9 ) are amended so that the same sY�all read as follows: "430.�36. Penalties. The franchise shall provi e for the deposit of a letter of credit to insure faithful perf rmance by ' � the co.mpa�ny. For the violation of any of the ollowing enalties shall be charge ble to the provisions of the franchise, p . . lett�r of credit and the company as follows: - (1) For failure ' to complete system constr ction in � accordance with the construction plan provided in the franchise unless the city council specifical y approves � the delay by motion or resolution , d e to the � , occurrence •of conditions beyond company's reasonable � : - control , company 9ka�� ga�' ��g� Pe� �a�' �e eae� �a�rT e� ga�� ie�ee€T �ke e1e��e}e�e� eefl��es.-m be f ined ` . � as follows : • (a) uP to $25f6.00 per day . for the f irst 60 days or part thereof , the deficiency continues � (b) between 60 days and 6 months , u� to 508.06 per d� or part thereof , the deficiency co tinues; (c) after 6 months , u� .to $1 , 000.00 per a or part thereof the deficiency continues. (2) . For failure to provide data , document , reports, information or to cooperate with cit during an 9 � DE PARTMENT �(n—��4 Np 13 H 1 u„�,, �„„,,, � CONTACT ��_�,�,,, PHONE DATE 1 Q�� Q Q,� ASSIGN NUh�ER FOR ROUTING ORDER (Clip All Locations for Signature) : Department Director 3 Director of nagement/Mayor Finance and Management Services Director � City Clerk Budget Director 2 Ori inatin U it--Cable Office �_ City Attorney WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpo e/ Ratio ale) : Orinance amendments are being requested to bring the City's cable ordin nces into conformance with the Cable Communications Policy Act of 198�+.. COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: Create City ordinance that conforms to new federal requirements, clari ies City regula�o�y authority. FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor' signa- ture n t re- Total Amount of Transaction: none quired if under $10,00 ). Funding Source: Activity Number: ATTACHMENTS (List and Number All Attachments) : Proposed ordinance amendments. �- DEPARTMENT REVIEW CITY ATTORNEY RE IEW Yes No Council Resolution Required? Resolution Requi ed? Yes No Yes No Insurance Required? Insurance Suffic ent? Yes No Yes No Insurance Attached: (SEE REVERSE SIDE FOR INSTRUCTIONS) Revised 12/84 HOW TO USE THE GREEN SHEET The GREEN SHEET has several PURPOSES: 1. to assist in routing documents and in securing required signatures 2. to brief the reviewers of documents on the impacts of approval 3. to help ensure that necessary su�porting materials are prepared, and, if required, attached. Providing complete information under the listed headings enables reviewers to make decisions on the documents and eliminates follow-up contacts that may delay execution. The COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS heading provides space to explain the cost/benefit aspects of the decision. Costs and benefits related both to City budget (General Fund and/or Special Funds) and to broader financial impacts (cost to users, homeowners or other groups affected by the action) . The personnel impact is a description of change or shift of Full-Ti.me Equivalent (FTE) positions. If a CONTRACT amount is less than $10,000, the Mayor's signature is not required, if the department director signs. A contract must always be first signed by the outside agency before routing through City offices. Below is the preferred ROUTING for the five most frequent types of documents: CONTRACTS (assumes autYiorized budget exists) 1. Outside Agency 4. Mayor 2. Initiating Department 5. Finance Director 3. City Attorney 6. Finance Accounting ADMINISTRATIVE ORDER (Budget Revision) ADMINISTRATIVE ORDERS (all others) 1. Activity Manager 1. Initiating Department 2. Department Accountant 2. City Attorney 3. Department Director 3. Director of Management/Mayor 4. Budget Director 4. City Clerk 5. City Clerk 6. Chief Accountant, F&MS COUNCIL RESOLUTION (Amend. Bdgts./Accept. Grants) COUNCIL RESOLUTION (all others) 1. Department Director 1. Initiating Department 2. Budget Director 2. City Attorney 3. City Attorney 3. Director of Management/Mayor 4. Director of Management/Mayor 4. City Clerk 5. Chair, Finance, Mngmt. & Personnel Com. 5. City Council 6. City Clerk 7. City Council 8. Chief Accountant, F&MS -� SUPPORTING MATERIALS. In the ATTACHMENTS section, identify all attachments. If the Green Sheet is well done, no letter of transmittal need be included (unless signing such a letter is one of the requested actions) . � Note: If an agreement requires evidence of insurance/co-insurance, a Certificate of Insurance should be one of the attachments at ti.me of routing. Note: Actions which require City Council Resolutions include: 1. Contractual relationship with another governmental unit. 2. Collective bargaining contracts. 3. Purchase, sale or lease of land. 4. Issuance of bonds by City. 5. Eminent domain. _ 6. Assumption of liability by City, or granting by City of indemnification. 7. Agreements with State or Federal Government under which they are providing funding. 8. Budget amendments. OF�'ICE OF Tl� CI COI�`�CIL � � ^�� DISTRIBUTION T0: �q�; 4/15/86 Al Olson - City Clerk c' �o � L� �q,.7 �4} V�� '""?=� �� f� r� ' M^ F�•�: Councilmember Kiki Sonne X Necessary action Read and forward Prepare response For your information Read and return Contact me �S��7E: I would like to have t e attached ordinance amendin the cable ordinance 1 ced on the A ril 22 City Council a enda. Thanks. r �� _ �� § 238.083 CABLE.COMMIJNICATI�� CATIONS -238.083. .Sale or transfer of franchise -:. ;.::� , .- � ;��: . -- ,._ ,^; ,,'�; ��ting the franchisin� Subdivision 1. fi�ndamental corporate change defined.For purposes of this B ' ��5ranchisee's accounting a "fundamental corporate change" mea.ns the sale or transfer of.a majority of a,co -- ��e franchisee file with th tion's assets; merger, including a parent znd its subsidiary corporation; consolidatio�� ? .�c�r�nes and other:informa.ti creation of a subsidiary corporatioa. ... :.. :.. . , - - - ._ .. . ., . .... - _ . . �i fc. . . , Subd. 2. Written approval of franchising suthority.�A�sale or.transfer of.,a� t�rsm�s specifying: � •- . � chise, including s sale or transfer by means of a fundamental corporate change, req'• ; ,,,,�,,.��r charges or th; the writ�:een,approval of the.franchising authority. The parties to the sale or transfer-' ��Z� m��p�i� franchise shall make a written request.to the franchising authority for its approva]o ' sale or transfer."The franchising authority shall reply in writing within 30 days=o�' :��d terms of residentia request and shall indicate its approval.of.the request or its deterniination that 8' � - srs i� aad terms of residentia •hearing is necessary if it determines that a sa)e or transfer of a franchise may.adv " a��municipality; and:; affect the company's subscribers. � The franchising authority-shall conduct' a 'p �� by which subscriber hearing on t he reques t wi t hin 3 0 days o f t ha t de t e'rmina tion: •: �=�•, - . - . _: s�z� or federal law; � Subd.'3. 'Notice of hearing:Unless otherwise already provided for by local law,n�` ;�-��mdicating by tit]e the of of the hearing must be given 14 days before the hearing by publishing notice of it onoe �.eoc�a�e continuing administr a newspaper of genera] circulation in the area being served by the franchise. The�� ` s t,�,�, �uiring.the franchisee must contain the.date,time, and place of the hearing and must briefly state the subs ��e �� of the franch of the action to be.considered by the franchising authority. _- •:. � . � :; , � �. �.e �v insurance in an amc ° Subd: 4..-Apprnval or denial of�sale or transfer�reques� `�Vithin 30 days .afte`r_ ��a.a3e franchising authority. public hearing, the franchising authority shall approve or-deny in writing the-sale"' ,ec�sas�ey may �egally`lie rec transfer request.�•The approval•must not be unreasonably withheld. . .. ; r,�{� , �� - . . . : ,:. Svbd. 5. Sale or transfer of franchise without system.`The'parties to the'sal�.. ��t�at at the�time:#1�►e frai . transfer of a franchise only;ywithout the iriclusion of a cable communications system ;�-`.��T�qnidated_all,of its.obli� which at least substantial�construction�ha's commenced,.shall�establish-that-thel:sale -�••��x a perforinance bond, transfer.of�orily the franchise w�l-be in.the-public,interest ::: � ;:__�.r-.- i�f �c.�ra�franchisizig authority in =-' Subd.=�6.''Sale or tiansfez�of st.ock.�'Sale'bi trans�'er of stoek in a corporatSon so��` �'��e�bon for damages : cXeate a �ew controlling interest in a cab]e communication system is sub�ect;to�' ° �'�-��ority may, from.ye -re uirements of this section.s: ,_�:; .. . � . ... . . . . • " . . .��;� a�-.��e�formance bond or inst q .,,, . . . . ..__. .._ . - -��The term "controlling interest"�as used herein is'�not limited to majoritp stock�o�' ��''�'��t nothing .contained ship,:but includes actual wor}dng control�in whatever manner exercised.� =-`� _"�'�� f��'e to exercise re ' -• � • - .. :.. .. . . �: �_i ��forming work connecG Laws 1985, c. 285, § 22, eff.July 1, 1985. . ;_ . . ...._. �' ==�ra�]ic place or with the co � . ' . � • - . .,��i � . �--� 238.084. Required contents of franchise ordinance . . ,. . ,, . -. .. , . � •::�.j :, '� =� that the 4franchisee's ' • Subdivision.l.. Al1 systems.The following requirements apply to all classes A,B, �"�considered and,appro� C systems un]ess provided otherwise: •�•-•_ _ . -_ . , _, - ,;-�u ��afforded reasonable no '� (a)=a provision that the:franchise compbes�w�th the Minnesota.franchise stan � ��?s'�requiring the construc • �.:►a�....,:.. contained in this section; . � ... ._... ....- �-t: :. . . . :: • : __�:.' -�.•�te or potential use,.� . - . .. . - ��=television-broadcast e} � " (b) a provision requiring the franchisee ancl the franchising authority�to�conform; s$��ael cagacity;.availal state laws and rules regarding cable communications not ]ater than�one year after �=tiy�y of bandwidth means becorne effective, unless otherwise stated, and to conform to federal laws and regulatios- :� � that a minimnm ui regarding cable as they become effective; . ` : - : �- ��.--- -_ --.�--i-�_t channels, can be put (c) a provision limiting the initial and renewa] franchise term to not more than 15 y t .�:. "c� each; . , = -=''� � initial franchises t (d) a provision specifying that the franchise is nonexclusive; � . "'�'��==—'�uction and a schedul� (e) a prnvision prohibiting sa]e or transfer of the franchise or sale or transfer�of s� ��se areas which wil] so as to create a new controlling interest under section 238.083, except at the appmvsl!f- �s of cable: . .-: ,�; the franchising authority, which approval must not be unreasonably withheld, and� 3�ti?p �ys of the gnnting the sale or transfer is completed pursuant to seetion 238.083; .: : . . � ;;zt � �L' ��ernmental perniits; licE 132 �" . � /�P�e.,��,'x A -. .� *� . � � � -�� :�BLE_COMMUNICATIONS CABLE�COMMUNICATIONS , § 23H.084 . : "(fl a provision granting the franchising authority collecting a nchise fee the authori- . For purposes of this section, h' � audit the franchisee's accounting and financial records up n reasonable notice, and �r of a majority of a corpora• requiring that the franchisee file with the franchising authority nnually reports of gross =orporation; consolidation; or subscriber revenues and other information as the franchising uthority deems appropri- ate;:,- : . • . .. . .. . � sale or transfer of a fran- (g) provisions specifying: � -�� -= � - . ,al corporate change, requires -- (1)`current subscnber charges or that the current charges are avai]able� for public es to the sale or transfer of a inspection in the municipality; thority for its approval of the . writing within 30 days of the (2) the length and terms of residential subscnber contracts, f they exist, or that the s determination that a public current Iength and terms of residential subscnber contracts are available for public of a franchise may adversely �sP�hon in the municipality; and. : ;_ . .. . ,. � ority shall conduct a public - (3) the procedure by which subscnber charges are establishe ,:unless such�a provision n. . .. is contrary to state or federal law; __ _. . . . _ ._. ._ ovided for by local law,notice (h).a provision indicating by title the office or of�cer of the f chising authority that is publishing notice of it once in responsible for the continuing administration of"the franchise; � � . by the franchise. The notice : ��a provision requiring the franchisee to.indemnify and hold armless the franchising • ist briefly state the substance authority during the term of the franchise, and to maintain th ughout the term of the ' � - � franchise, liability insurance in an. amount as the franchisin authority may require �st. Within 30 days after the insuring both the fnnchising authority.and the franchisee wit regard to damages and • deny in writing the sale or penatties which they may legally be required to pay as a res t of the exercise of the w-ithheld. - _: franchise; : - �. . _ . . . . n. The�parties to the`sal�oT �: ��_a provision that at the time the francliise becomes effectiv and thereafter until the f �le communications system in franchisee has liquidated.all,of its obligation�with the.franch' ing. authority, the fran- iall establish-that the sale or chisee shall fiirnish a perforinance bond,certificate of deposit, o other type of instirumtnt . _ ,, _. . ,_ . ._ ,_ approved by the franchising authority in an amount as ttie franc ising authority deems to - stock in.a corporation so as�to be adequate compensation for damages resulting from the fran hisee's nonperformance. ion system is subject to the Tt►e franchising authority may; from year to:year and in its s le discretion, reduce the - } .. � .: . . , amount�of the perforcnance bond or instrument; ' - - � '�� , 'r. - . . , ..._ . .. . .- , � � . .• . �ited to inajority stock owner - (k) a.provision that nothing contained in the franchise reliev ��a.person from�liability ner exercised.� - arising out of the failure to exercise reasonable care to avoid juring the franchisee's . .. . facilities while performing work connected with grading,regra g, or changing the line �.-� of a street or public place or with the construction or reconstru tion of a sewer or water . .. . � system; . . . . .. = . , ., . . - ;=(l) a Jprovision that the franchisee's technica] ability,.finan ial condition, and legal s apply to all.classes A, B, and qualification were considered and approved.by the franchising uthority in a:fnll public - . _ proceeding that afforded reasonable•notice and a reasonable pportunity to be heard; [innesota.franchise standards -: (m) a provision requiring the constrvction of a cable system with a channel capacity ... available for immediate or potential use,equal to a minimum of 7 MHz of bandwidth,the ising authority�to conform to eQ�valent of.12 television-broadcast channels. For purposes of this section, a cable 'ater than one year after they sYstem with a channel-capacity; available for immediate.or tential use, equal to a o federal laws and regulations �minimum of.72 MIiz of bandwidth means: the provision of a dis 'bution system designed and constructed so. that.a minimum of. ?2 MHz:of bandwid ,. the equivalent of 12 ' � � television broadcast channels, can be put into use with only the a dition of the appropriate �rm to not more than 15 years headend equipment; � . . . (n) a provision in initial franchises that there be a full d cription of,the�-system >ive; � proposed for construction and a schedule showing . , _ . . . �e or sale or transfer of stock - -(1}.that for franchise areas which will.be served by a system proposed to have fewer .083, except at the approval of , �than-100 plant miles of cable: . . , ... , . � . . . .... . .. . ' reasonably withheld, and that � - (7 �t within 90 days of�the granting of the franchise, the f nchisee shall apply for i83� . . _ . . . _.- the necessary governmental permits; Iicenses,'certificates, and uthorizabons; - 133 ,� >, -. ,f . �� § 238.084 CABLE COMMLTNICATIO S� CABLE COMMUNICATIO: (ri) that energized trunk cable must be�exteaded substantially throughout the.autho In cases where an initial ed area within one year after receipt of the necessary governmental permits, licens s, communications system ha� certificates, and suthorizations arid t,hat persons along the route of the energized ca le tio�. �- . _ - will have individual "drops"-as desired during the same period of time; and OVhen a franchise is rene� (ii�7 that the requirement of this section may be waived by the franchising autho � not have the technical caF only upon cecurrence of unforeseen events oz acts of God; or � , . , ' authoritp shall determine�1 . (2)that for franchise areas which w�11.be sei-ved by a system proposed to have 100 pl t ��ons is needed after aF miles of cable or more, a provision: . � reasonable notice and a rea (i) that'within 90 days of the granting of the franchise, the..franchisee.shall apply� r • � (u) a provision stating th� the necessary governmental permits, licenses, certificates, and authorizations;_. -be trarismitted from a subs (ii)that engineering and design must be com leted within one eax after the patterns or practices with� P y granting f request for permission mt the franchise and that a significant amount of cottstruction must be completed within o e statement that the .subscr year after the franchisee's receipt of the necessary governmental permits, licens s, provisions.' The written pe� certificates, and authorizations; . _ � year whieh 'is renewable at (iii)that energized trunk cable must be extended substantially throughout the autho z- subscriber's fa�ure ta prov: ed area within five years after commencement of construction and that persons along e at any time by the subsci route of the energized cable v,�11 have individua] "drops"�within the same period of time,if required for each type or c: desired; and . _ . , _ . -- _ . _ . : for the purpose; � (iv) that the requirement of this section.be waived by the franchising authority o �y �. ��(1) No information or d; upon occurrence of unforeseen events or acts of God; � subscn'ber terminal, includ subscnbers �or�lists that : �(o)�unless otherwise�akeady provided for by local law, a provision that the franchis otherwise made available t shall obtain a permit from the pmper municipal authority before commencing constructi n �� b��s use, or tc of a cable'commnnications system, including the opening or-disturbance of a stre t, t1�e company has�received . sidewalk;driveway, or public place. The'provision must specify remedies available to e � �� ava�able; ., : franchising authority in cases�where �the franchisee fails to meet the conditions of e - � ' ` �� . . . .. . . , � - _.. _ �. �(2),Written �pemussion' � � conducting systemwide or (p) unless otherwise already.provided for by local law,'a provisian that wires, eondui , verifying system�integrity cable, and other property and facilities of the franchisee be located, constructed,install , this information is`subject and maintained in compliance with applicab)e codes. The provision must also specify th t (3) For purposes of this the franchisee keep and maintain its property so as not to unnecessarily interfere with e signaling path provided b3� usual and customary trade, traffic, or.travel upon the streets and public places of e from a subscriber termina . franchise area or endanger the life or property of any�person; � � (q) unless otherwise already provided for by ]oca] ]aw, a provision that the franchis' g (�) a provision specifyv ' � authority and the fnnchisee shall establish a procedure in the franchise for the relocati n franchisee of complaints or removal of the franchisee's wires, conduits, cables, and other property located in e � �-disputes,=and other matte: street, right-of-way, or public place whenever the franchising authority undertakes pub c h'�') a provision requirin improvements which affect the cable equipment; . . �' ' . reception of complaints b� (r).a provision incorporating by reference as a minimum the technica] standar s repair service capable of within 24 hours after recE promulgated by the Federal Communications Commission relating to cab]e communi - who w�l beax the costs i tions systems contained in subpart K of part?6 of the Federal Communications Commi - sion's rules and regulations relating to cable communications systems and found in Co e (�) a provision granting of Federal Regulations, title 47, sections 76.601 to 76.617. The results of tests requir d franchise and the rights by the Federal Communieations Commission must be filed within ten days of the condu t violates a provision of th of the tests with the fnnchising authority; franchise ordinance, or p: (s) a provision establishing how the franchising authority and the cable communicatio s The municipality shall company shall determine who is to bear the costs of required special testing, termination and its inten� minimum of 30 :days a: (t) a provision pertaining to the franchisee's construction and maintenance of a cab e The franchisee must b communications system having the technica] capacity for nonvoice retum communicatio s before the governing bo� which, for purposes of this section, means the provision of appropriate system desi techniques with the installation�of cable and amplifiers suitable for the subseque t �` �(y)a provision that no� insertion of necessary nonvoice communications electronic modules..;... .. , a franchise,may abandor 134 � � . _ .� . �-�-y�� CABLE COMMUNICATIONS CABLE .COMMUNICATIONS § 23$.084 intially throughout the authoriz- In cases v�•here an initia] franchise is granted, the fran isee shall provide a cable govemmental permits, licenses, f communicataons system having the technical capacity for onvoice return communica- he route of the energized cable ! _tions. . _ period of time; and - • � When a franchise is renewed, sold, or transferred and is s rved by a system that does �d by the franchising authority i not have the technical capacity for nonvoice return com unications, the franchising �d; or authority shall determine when and if the technical capacity f r nonvoice return communi- stem proposed to have 100 plant j ��ons is needed after appropriate public proceedings at e municipal level givin reasonable notice and a reasonable opportunity to be heard; g �, the franchisee shall apply�for , ' tu� a Provision statin that no si g gnals of a class IV cable c mmunications channel may :, and authorizations; -be ��d �'om a subscriber terminal for purposes of m nitoring individual viewing n one year after the Patterns or practices without the express written permissi n of the subscriber. The n must be completed�thin one request for permission must be contained in a separate d cument with a prominent overnmental S��ment that-the subscriber is authorizing the permissio in full }rnowledge of its Permits, licenses, provisions. The written permission must be for a limited peri of time not to exceed one year which is renewable at the option of the subscnber. No p nalty may be invoked for a ntially throughout the authoriz- subscnber's failure to pro��de or renew the authorization. Th authorization is revocable • tion and that persons along the at any time by the subscriber without penalty of any kind. The permission must be ithin the same period of time,if =equired for each type or classification of class IV cable com nications activity planned for the purpose; � the franchising authority only (1) No information or data obtained by monitoring trans ission of a signal from a subscnber terminal, including but not limited to lists of the n mes and addresses of the a provisio�5 that the franchisee subscnbers or lists that identify the viewing habits of su cribers, may be sold or �efore commencing construction otherwise made available to any party other than to the comp y and its employees for ig or disturbance of a street, �� b��ess use, or to the subscn'ber who is the subject f that informatioq unless �� . the campany has received�specific written authorizatifln from e subscriber to make the ify remedies available to the �� available; .. �ta meet`the�conditions of the � . , -' - - ° �. > � (2) Written permission from the subscnber must not be equired for the systems provis�on that wires, conduits, conducting systemwide or individually addressed electronic s eeps for the piirpose of located, constructed, installed, °e�ng system integrity or monitoring for the purpose of' iT]ing. ; Confidentiality of rovision must also specify that this information is subject to clause (1); ` � , nnecessarily interfere with the (3) For purposes of this provision, a "class N cable commun tions channeI" means a reets and public places of the . signaling path provided by a cable communications system to nsmit signals of any type son; . . from a subscnber terminal to another point:in the communica ons system; provision that the franchising - (�) a provision specifying the procedure for the investigati n and resolution by the :he franchise for the relocation franchisee of complaints regarding quality of service, equip ent malfunction, billing , other �roperty located in the disputes, and other matters; �. �g authority undertakes public (w) a provision requiring that at least a toll-free or collect lephone. number for the reception of complaints be provided to the subscriber and that e franchisee maintain a num the technical standards repair service capable of responding to subscnber complaints or requests for service relating to cable communica- �►thin 24 hours after receipt of the complaint�or reques� The rovision must also state eral Communications Commis_ who will bear the costs included in malring these repairs, adju tinents, or installations; ns systems and found in Code (x) a provision granting the franchising authority the right to rminate and cancel the The results of tests required franchise and the rights and privileges of the fra,nchise if the franchisee substantially �•ithin ten days of the conduct violates a provision of the franchise ordinaace, attempts to ev e the provisions of the ' �- :� franchise ordinance, or pra,ctices fraud or deceit upon the franc ising authority. and the cable communications The municipality shall provide the franchisee with a written notice of the cause for red special testing; termination and its intention to terminate the franchise and sh allow the franchisee a � and maintenance of a cable �imum of 30 .days after service of the notice in which correct the violation. nvoice return communications ' The franchisee must be provided with an opportunity to be h ard at a public hearing �f appropriate system�design before the governing body of the municipality before the te ' ation of the franchise; suitable for the subsequent ° (y)a provision that no cable communications company, notwiths ndin ,an �nodules. . g y provision in .-. � a franchise;map abandon a cable communications service or a po 'on of it,without having � 135 �� .. �`�� _�� § 238.Og4 , �CABLE COMMUNICATI S: �B� �MMUNICATIO given three�months prior written nntice to the franchising authority. No cable comm ni-- � �e by the genera] publi� cations company�may abandon a cab)e communications seTVice or a portion of it with ut �� or noncommercia] users compensating the franchising authorit;; for damages resulting to it from the aband n- the specially desig-nated acc ment; ,. . • . . . . ` .�- . _ - : � � -� . _ - : ` (2) The provision must al: ,' (Z) a provision requiring that upon termination or �forfeiture �of a franchise, � e ,' ��on of the specially desi franchisee remove its cable, wires,-and appliances from the streets, alleys; and o er (3) The provision must rE public places within �the franchise area'if the franchising authority so requests, an =a required in clause (i) is in ti procedure to be followed in the event the franchisee fails to remove its cable,�wires, d 80 percent of the time durii appliances from the streets, alleys,:and other public places .within the_�franchise ar ; . there is a-demand for use c �:(aa) a.provision that�when a franchise or cable system is offered' for sale e ' has six montl�s in which to� franchising�authority shall�have the right to purchase the system; ` ' - � p�se,prnvided that prov �� cable system to install con� (bb) a provision establishing the:minimum number of.access channels that the f n- converters by the system c chisee sha1J make available. This provision.must require that the franchisee shal] provi e �ugh negotiation betwee to each of its subscribers who receive some or all of the services offered on the syste , wishes to install converter. reception on at least one specially designated access channeL, The specially.designa d access channel may be �used by'local educatio�a] authorities and local government.on a (4) �nchisees providin€ first-come, first-served,,nondiscriminatory basis. During those hours that the specia y computer-operated function designated access channel is not being used by the local educational authorities or l0 1 data service.subscribers. government, the franchisee shall lease time to commercial or noncommercia7 users on a � (b) A provision establish first�ome;-first-served, nondiscriminatory�basis if the demand�for that time arises. e available for public use:� ' franchisee'may a}so use�.this specially designated access channel for loca.l origiaati n available for public use upo during those hours when the channel is not in use by loca] educational authoritaes l0 1 �Pei'form good quality pla goverament,-or.commercial or noncommereia] users who have ]eased time` �'he� record pmgrams at remot spectrtim must be used for the specially designated :access channel"required -in within the.��meaning of th � ...- : P��Ph�. ` .. -,,. :_ .:: , :._. . .. . . . :. �:,:� -...� -:.. tition.must contain the . . . • Pe The provision must also require that the franchisee'shall �establ�sh' ru)es.for �, e ' system,.butin no case'mo� :adrninistra�on of.the specially designated access channel. ' - � � - �-�• Subd. 3. Required pro � �anchisees providing only_.alarm services :or only data transmission services�f systems must contain state cornputer-operated functions.do not need to�provide access channel reception to alarm a , section prnvides otherwise; data service subscribers. , . - ; . requirements::_ � Subd. 2. Required provisions for class B system. F1-anchise or class B cab �a) a provision establishi system must contain statements and provisions consistent with ubdivision 1, unles and leased access channels hereafter ovided otherwise, and statements and provisions con ' tent with the fo2lowin ' � �is provision are not si • requirements. � (1) The provision must r , (a)a provision tablishing the minimum number of ac � s channels that the�franchise availab)e channel capacity, ' shall make available. F�anchisees subject to this.pro ' ion are not subject to subdivisio �e services offered. on � 1, P�BTaPh (bb): . . �noncommercial public acc � . - ::.. � � ' :.� - first-come, first-served,.no: (1)The provision must re ire that the franc ' ee provide to each�of.its subscnbers wh - charrnel for use by.loca].ei receive all or a part of the to services off ed on the system, reception on at least on channel available for loca] speciaily designated access chan availa e for use by the general public on a first�come channe] availab]e for -lea first-served, nondiscriminatory bas' hanne) time and playback of prerecorded pr commercial and noncomme gramming on this specia]]y designa ess channel must be provided without charge of the specially designatei the.genenl public, except that rson equipment, and production costs may graph. The provision mu assessed for live studio pres tions exce 'ng five minutes in length. Charges fo p]ayback of prerecorded production costs must be co stent with the goa f affording the public a low-cost mean noncommercial public acce of television access. Th specially designated a ess channel may be used by loca and production costs may education authorities a local government on a first e, first-served, nondiscrimina five minutes in length. ( ry basis during thos ours when the channel is not in us y the genera] public. Durin public access channels mu; those hours that specially designated access channel is n being used by the genera. means of television access public, 1oca1 ed tional authorities, or local government, the nchisee shall lease time �2� �'}�e provision must to. commerci or noncommercial users on a first-come, first-se d, nondiscriminato public access channel, th� basis if demand for that time arises. ' The franchisee may al use this speciall designated loca.l governm designa access channel for local origination dnring those hours when e channel is not . 136 -. � e - . �,� �--�� CABLE COMMUNICATIONS CABLE COMMUI�IICATIONS � 238.084 g authority. No cable communi- � �e by the general public, local educational authorities, 1 1 government, or commer- ;ervice or a portion of it without � c 1 or noncommercial users who have leased time, The VH spectrum must b �sed for -sulting to it from the abandon- �e pecially designated access channel required in this pa ph.. (2) e provision must also require that the franchisee es blish rul or the adminis- iorfeiture of a franchise, t}ie ��on o the specially designated access channel. n the streets, alleys, and other � (3j The p 'sion must require that whenever the speciall signated access channel :�g authority so requests, and a � required in clau (1) is in use during 80 percent of the we ays, Monday to Friday, for ; to remove its cable, wires, and 80 percent of the e during a consecutive three-hour no for six weeks running, and iaces within the franchise area; � there is a demand fo se of an additional channel f the s me purpose, the franchisee :stem is offered for sale, the has six months in which rovide a new speciall esignated access channel for the same ;e sy stem; � purpose, provided that provi 'on of the additio channel or annels does not require the ` access channels that the fran- �ble system to install conve . Nothi in this section recludes the installation of :hat the franchisee shall rovide converters by the system.on a v nta basis, as a result f an agreement azrived at P through negotiation hetween the pa ' s to a franchise, or..by a potential access user who services offered on the system, wishes to install converters in or r_to ake use of.an ad itional channel or channels. _ 3nne1. The specially designated .. . . " .- . . .. :7es and local government on a (4) �anchisees providing y alarm se 'ces or only da transmissioa services for ; those hours that the specially computer-operated functio do not need to pro ' e access ch nnel�eception to alarm and' educational authorities or.local data service subscribe . - _ :al or noncommercial users on a (b) A provision blishing the minimum equipmen �tha the franchisee shall make mand for that time arises. The available for pu c use. The provision shall require tha e franchisee make readily ss channel for local origination available for lic use upon need being shown, at least the i ' al equipment necessary cal educational authorities local to Perform ood quality playback of prerecorded programm' , an to make it possible to o have leased time. The�VHF record ograms at remote locations.with battery�perated portab equipment Need , :ccess channel required in this wi � the.meaning of this section. must be determined subscnb petitioa.� The ' � - . pe ' 'on must contain the signatures of.at least ten perce of the subs 'bers of the � � shaIl establish rules.for',the st�m, but in no case more than 350 nar fewer than-100 si atures.;. ._,_-�,,;; ; �, -. � ,. • • � -• ' Subd. 3. Kequired provisions for class�. C system. nchises for class C•cable data transmission services�.for Ystems must contain statements and provisions consistent th subdivision 1,unless this s channel reception.to alarm and; section provides otherwise; and statements and provisions c nsistent with the following requirements: . ' - _ . . . Franchises for �class B cable �a) a provision establishing the minimum number of public educational, governmental, -ent with subdivision 1, unless and leased access channels that the franchisee shall make av 'lable. F�anchisees subject �ns consistent with the following ' � �is provision are not subject to subdivision 2, paragraph (bb). _ , (1) The provision must require that the franc��isee shall, the extent of the system's ess channels that the franchisee available channel capacity, provide to each of its subscnbers who receives some or all of ;n are not subject to subdivision ' the services offered on the system, reception on�at le t one specially designated . , noncommercial public access channel available for use b the genera.l public on a first-come, first-served, nondiscriminatory basis; at least on specially designated access ie to each of its subscnbers who channel for use by local educational authorities; at Ieast on specially.designated access rstem, reception on at least one channel available for local government use; anc3 at least on specially designated access e general public on a firstfcome, channel available for lease on a first-come, first served, ondiscriminatory basis by : playback of prerecorded pra commercial and noncommercial users. The VHF spectrum ust be used for at least one t be provided rv�thout chazge to of the specially designated noncommercial public access c nels required in this para- ::nd production costs may be graph. The provision must require that no charges may made for channel time or �nutes in length. Charges for playback of prerecorded programming on at least one f the specially designated iing the public a low�ost means noncommercial public access channels required by this para ph.. Personnel, equipment, �hannel may be used by locaI and production costs may be assessed, however, for live s dio presentations exceeding e, first-served, nondiscriminato- five minutes in length. Charges for those production cos and fees for use of other � by the general public. During public access channels must be consistent with the goal of af ording the public a low�ost � not being used by the general means of television access. ' the franchisee shall lease time first-served, nondiscriminatory (2) The pmvision must require that whenever the speciall designated noncommercial ee may also use this specially public access channel, the specially designated education a cess channel, the specially e hours when the channel is not designated loca.l government access 'channel, or the specia y designated leased access 137 .� � :� ; . � �� § 2$$.OS4 - ` CABLE.COMMUNICATIC . CABLE COMMUNICAT ONS-� � channel required in clause (1) is in use during 80 percent of the weekda �� Mond � �Y�' channels, shal] have until : �ida for 80 �' y.�0=" Tninimum_of. 120 MIiz-of Y, percent of the time during-any consecutive three-hour period for six eeks.• running, and there is demand for use of an additional channel for the same purpos , �e parties to a franchise frc franchisee shall then have six months in which to provide a new specially desi ated . minimum of 120 MHz of b; access channel for the same putpose, provided that provision of the additional chan l or � (3) For purposes.of this channels must not require the cable system to install converters. However, nothi g in immediate or potentia] use this sectioa prec)udes the.installation of converters by the system.on a voluntary bas ,or;- provision of a distribution as a .result of..an.agreement-.arrived at through negotiation between the.parties, a � IViliz of bandwidth,the equ franchise, or�by a potential access user who wishes to install converters in order to ke with only the addition of -use of an additiona] channel.or channels: . - .. '- (3) The provision must�also require that the.franchisee establish rnles pertaining �e. (d) In Twin Cities metro administration•of the specially designated noncommercial public access channel, the . �F channel 6 for unifc specially designated educational access channel, and the specially designated 1 sed Subd. 4. . Additional te� access channel required in this section. - . _. _ tional terms and conditior (4) Those systems which offer subscnbers the option of receiving programs�on on �or provided the additional tei more special service channels without also receiving the regular subscriber services comp)y_with this section by providing the subseribers who receive the special service �y Subd. 5. Reclassificati �� at least one specially designated composite access channel composed of the program �g �g au�Ont�'when the nur on the specially designated noncommercial public access channel, the specially design ted in the franchise area chan; � education access channel, and the specially designated local goyernment access cha nel section. Amendments mu � re9uired.in�this section:;:,:_ : _ . . ... . class of cable communicat � : (5) Oa those systems wit.�►out sufficient adailable channel.capacity to silow.for ac va- ��1985;c. 285,'§ 23, eff., tion of a11 specially designated access channels required in this section, or when dem nd - ' . #or use:of the.channels does aot warrant activation of all specially designated ac s's . 238.085. Commissioner c chaaaels'required in this section, public, educational,-governmental, and leased �ac ss � � channel pmgramming may�be combined on one or more cab]e channels: To the'e nt �Subdivision l. 'Docum time is.available,�accesschannels may:also.be used#or.other�broadcasta.nd nonbroad t _ �g of a franchise, the exb _ , services,,provided that these"serrices.are subject to immediate .displacement if.ther is the sale`or transfer.of a demand to use the channel for its specially.designated purpose. _The system shall,:in ny submit documentation to t �case, provide at )east one full channel on the VHF spectrum for shared access pro the process fol]owed conf • ming..._. � � � � � . -,, �; . , ..,: , , .. - _. . . � inconsistent witti federal l (6) �anchisees providing�,�only alarcn.services or only data transmission services or Subd. 2. ' Actions by cc computer-operated functions do not need to provide access channel reception to alarm d commissioner of commerc R data service subscribers. , ;, , . _. , � . - . ` �� (1) approve the certifica . (b) a provision establishing the minimum equipment that the franchisee shall m e available for public use. :.The pro�zsion.shall require that the franchisee shall m e �2) disapprove the certii - . , , , readily �available for public use at.)east..the minimal equipment necessary..for e or•the process dces not a �" production of.programming and playback .of .prerecorded`programs for the specia y - designated noncommercial public access-channel:required by paragraph (a),�clause (3) request that the ap The franchisee ahall also�make readily available,°upon need being shown, the.minim� } receipt of the request equipment necessary to,make it possible to.record programs at remote locations wi (b)If the commissioner battery-operated portable equipment �Need within the meaning of this section.must or the requested additiona determined by subscriber petition:-. The petition must contain the signatures of at )e t er of commerce fails to is; ten percentof the subscribers of the system,but in no case more.than 500 nor fewer th n receipt of a certificate, tt� 100 signatures. . � Subd. 3. When certif (c) a provision establishing the minimurri systemwide channel capacity that the fra cants may either (1) take chisee shall make available. F�anchisees subject to the requirement of this provision a e process into conformance not subject to the requirements of subdivision 1, paragraph (bb). - �� days of receiving the dis; (1) The provision must require the construction of a cable system with a chann ] Subd. 4. Operation c capacity, ava�able for immediate or potential use, equa) to a minimum of 120 MHz - bandwidth, the equivalent of 20 television broadcast channels. commerce is reviewing a (2) S stems that are akead during an appeal of the Y y constructed pursuant to a preexisting franchise requirin aIlowed to continue the c fewer than 120 MHz of bandwidth, the equivalent of fewer than 20 television broad 138 . - � , � /C �l? ' �I� � CABLE COMMUNICATIONS CABLE COMMUNICATIONS . § 23$.0g5 -cent of the weekdays, Monday�to channels, shall have until June 21, 1986, to increase the ystem's channel capacity to a :•�e three-hour period for six weeks minimum of. 120 MHz of bandwidth: However, nothin in this section precludes the _hannel for the same parties to a franchise from negotiating an agreement calling for an increase to a purpose, the minimum of 120 MHz of bandwidth before June 21, 1986 -ovide a new specially designated �•ision of the additional channel or � (3) For purposes,of this section, a cable system with a channel ca aci converters, However, nothing in immediate or potential use, equal to a minimum of 120 �Iz of banaW�a�hameans e he 'he system on a voluntary basis,or : provision of a distribution system designed and construc d so that a minimum of 120 -�:iation between the parties to a MHz of bandwidth, the equivalent of 20 television broadca t channels, can be put into use :nstall converters in order to make with only the addition of the appropriate headend and s bscnber terminal equipment �e establish rules pertaining to the (d) In T�vin Cities metropolitan area'franchises, a pm ion designating the standard ercial public aecess channel the �F channei 6 for uniform regional channel usage. reqnired in section 238.43. : the s eciall desi � � P Y gnated leased ::Subd. 4. :�Additional terms and conditions permitted. franchise may contain addi- � tional terms and conditions as the municipality and the franchisee deem appropriate, : of receiving programs on one�or P��ded the additional terms' and conditions are consiste t with federal and state law. e regular subscriber services may Subd. 5. Reclassifcation of systems. A franchise mus be amended by the franchis- ��o receive the special service only, ing authority when the number of subscribers served by th cable communications systetn ::el composed of the programming in the franchise area changes so as to result in reclassific 'on of the system under this � channel, the specially designated section� Amendments must include proyisions consistent 'th the requirements of that : local government access channel class of cable communications systems. :.� .. :nnel capacity to allow for activa- �ws 1985,c. 285,�§ 23, eff. July 1, 1985. ` � ' - � i in this section, or when demand - � � - � - - �f all specially designated acces's 238.085. Commissioner of commerce .: � ' � � � governmental, and leased access � - � � • .re cable channels: To the"extent � Subdivision 1. Documentation to the commissioner o commerce. Upon the grant- ��ther broadcast and nonbroadcast. �g of a franchise, the extension of a franchise for a-term, e renewal of a franchise, or � �mediate.displacement if there•:is �e &a1e.or transfer.of a-franchise; the-franchising autho 'ty and the.franchisee shall' ;�urpose. T}ie system shall, in any submit documentation to the commissioner of commeree ce ' g that the franchise and =�ru.m for shared access program_ . the process followed conform to this chapter, to the exten ttiat these sections are not inconsistent with federal law. � . - ._- . , - :� data transmission services�for Subd. 2,' Actions by.commissioner.(a)Within 30 days of eceipt of the certificate, the �� channel reception to alarm and commissioner of commerce shaIl: - - , . .. that the franchisee shall make ` �l) approve the ce�cate; - _� � - �hat the franchisee shall make �2) disapprove the certificate, indicating in writing�to the pplicants why the franchise :� equipment necessary. for:the or•the process dces not conform to this chapter; or ��3ed programs for the specia.11y � (3) request that the a licants � -ed by paragraph (a), clause (1). receipt of the request Pp PrO�de additional inform tion within 30 day5 of the :eed being shown, the.minimum ' :_rams at remote locations with (b)If the commissioner of commerce fails to act within 30 d ys of receiving a certificate -�eaning_of this section.must be or the requested additional documentation;the certificate is a roved. If the commission- ,ntain the signatures of at least er of commerce fails to issue a final approval or disapproval 'thin 180 days of the initial �e more.than 500 nor fewer than receipt.of a certificate, the certificate is approved. . � , - ��` ' Subd. 3. When certificate disapproved. If the certifica is disapprovetj, the appli- �nannel capacity that the fran- cants may either (1) take the steps as may be necessary.to bring the franchise or the _quirement of this provision are process into conformance and rea i to the commissioner of commerce, or (2) within 30 -sph (bb). �� - � '-- � days of receiving the disapproval appeal the decision to the innesota court of appeals. - �:able system with a channel ` Subd. 4. Operation continues durin review or a : to a minimum of 120 MHz of g ppeat. ile the commissioner of �:nels. � � commerce is reviewing a certificate concerning a franchise extension or� renewal and during an appeal of the commissioner of commerce's decisi , the franchisee must be : preexisting franchise requiring allowed to continue the operation of the affected eable syste . �er than 20 television broadcast � � � 139 :�.-: t G�r'�� - ��G C�ITY OP` SAINT PAUL � � 7� � y =;,��,;� OFFICE OF THE CITY COIINCIL � ��unu��e . .��pp�� . . veaN . � D 4 f e ; y 15, 1986 • COMM (TTEE � RE PORT TO = SQint PQU I City Council F R O M � C o rn m it t e e �h ENERGY, UTILITIES AND ENVI ONMENT C M A I R Councilmember Kiki Sonnen Ordinance amending Saint Paul Legislative Code, Chapter 4 0, pertaining to the regulation of cable communications servi ce. At its meeting of May 14, 1986, the Energy Committe . ��ended ths��t£��he above'ordinance be approve _ �. and forwarded on to the full City Council. i CTTY HALL SEVENTH FLOOR SAIN PAUL, MINNESOTA 55102 _ .��. . . � , t �;�--�_y�� .��** �. CITY OF SAINT PAUL `� ' OFFICE OF THE C1TY ATTORNEY • .a � �u�im�i ;^ ?. "'� �'� ° w°E EDWA D P. STARR, CITY ATTORNEY , ��^�'� 64 City Hall,Saint Paul,Minnesota 55102 GEORGE LATIMER 612-298-5121 MAYOR April 28 , 1986 �� '�� IaF�� 2 1�8�� M E M O R A N D U M COUNCIL MEMB R KIKI SONNEN TO: Councilmember Kiki Sonnen, Chair Energy, Environment & Utilities Committee FROM: Jane A. McPeak �p�� Deputy City Attorney � �� RE: Cable Regulatory Amendments Enclosed please find a copy of the cable regula ory ordinance containing the changes requested at the April 23 E rgy Committee meeting. Your attention is directed to: l . Page 9 where I have changed the language to indicate that when arbitration occurs it must be pursuant o the Uniform Arbitration Act. Subd. 1 of this same section lready allows for arbitration of disputes arising "as a resu t of the con- struction, operation or management of the ca le communica- tion system and which is not governed by Se tion 430.036" (penalties provision) . In have attached a copy of the entire Section 430.035 as it reads now. Section 430.035 in its present form or even a amended does not in any way infringe on the authority or power of the City Council . The arbitration provisions are there simply to provide a forum other than the courtroom for settling disputes if either the City or the Company w' shes to take advantage of that alternate process. 2. Page 16 where the use of franchise fees has been clarified. If you have any additional questions, please contact me. JAM: j r Enc. cc : Linda Camp -��TE - C�7r CIEpM . • � • . •.R � F�w.w�E C UflCl� ;.�•�. � OSP�w��ENT � � CZTY OF SAI2�TT PAUL Fle N0. ��v -��' e�:�.E � r•�tpw . ' • � �rdin�znce dinanee N�. 3resented By Referred To � Committee: ate Out of Committee By ate An ordinance amending Saint Paul Legislative Code, Chapter 436 , pertaininy to� the regulat:on of cable communications service THE COUNCIL OF THE CIiY OF SAINT PAUL DOES ORDAIN: � � � Section 1. That Saint Paul Legislative Code Section 436.. 12, Subds. 6, 8 , and 13 are amended so that the same shall read a follows: " �36 . 612. Definitions. •Subd. 6. "Intezactive channel" means . a s gnaling path provided by a cable communications system to trans it signals of any type from a subscriber terminal or other ori i ation oint to anothez point in the cable communications system. . Subd. 8. "Connection" shall mean the attachm nt of the drop � to the first radio or television set or to an elect onic terminal � device or converter of the subscriber. � COUNCILMEN Requested by Departme t of: Yeas Naps • D►�w Nieosi� In Favor Rertmin s�n°'b.i A ga i n s t By so��e� T.desoo W i{son �' . Form Approved by City Attorney Adopted by Council: Date � By �'a,k� ,4-. �'12�.I�ec..� - ll- 8!0 =erti[ied Passed by Council Secretary _ _ By . - . �,pproved by Mayor: Date Approved by Mayor for ubmission to Council � ;� . Subd. 13. "Gross revenues" shall mean all revenue derived ' directly or indirectly by the company , its affiliates , subsidiaries , parent, and any person in which the company has a financial interest, fzom or in connection with the operation of the cable communication system governed by this chapter ; provided, however, all revenues shall include, but not be liinited to, basic. subscriber service monthly fees, fees for programming offered on a per-channel or per-program basis , pay cable fees, installation and reconnection fees , leased� channel fees , converter rentals, studio rental, ' production equipment and . personnel fees, interactive and data/computer service fees, a�e� advertising revenues} and other services offered over the s sY tem; . , and that this sha11 not include any taxes on. services furnished . by the company herein imposed directly upon any subscriber or user by the state, city or other governmental unit and collected • by the company on behalf of said governmental unit. " . _ Section 2 . � That Saint Paul Legislative Code Section 43�.614 is am ended so that the same shall read as follows : "430.014. Requirement for certificate of confirmation, riEEBstate appzoval and compliance with all state and federal laW s. No person shall operate or participate in the operation of a cable communication system within the city of Saint Paul without first obtaining a certificate of confirmation from the H�A�ese�a ea��e ee�+mdA�ea�}eAS bea%d�ommissioner of Commerce of 2 - , - . � �-�� . the State of Minnesota or other a enc or individual designated � state law and when so reguired � state 1 w ,. rule�`or regulation. Any cable communication system withi t�he city of Saint Paul shall at all times comply with all �ee�� state laws and �eg�1a�ie�8 e€ �l�e s��a�e a�d �e�e�a� ge�e�ax�efl� e� a��* ad��is��a�}�e age�e�es ��e�eef fle� �a�e� ��a� e�, �ea� af�e� ��ei� g�e�xt�1ga�ieflrules reqarding cable communicati ns not later than one (1) year after they become effective unle s otherwise- stated and with all federal laws and regulations re ardin cable as they become effective." . � • Section 3 . , That Saint Paul Legislative �Code Section 436.6 5 is amended , sc� that the same shall read as follows : / "436.4J15. Franchise: terms and conditions. A nonexclusive 15 year franchise may be granted by ordinanc to a cable communications company to construct and operate a sy tem to serve � the city of Saint �Paul. The provisions of this .cha ter shall be incorporated by reference into the franchise. he city and company may agree to additional terms and conditi ns as may be deemed necessa=y, providing that said terms and c nditions are consistent with the provisions of this chapter a d applicable law. � 3 _ -. i No franchise shall be awarded by the city which does not . � �e��}�e tke €e��eW��g+ , ��} �ke eefls��e��ea e£ a ��s��e� s�s�e� ��aa� a�� €ee�e� ea��es} ��e�g�e�� a�� a�ees e€ �ke e�� W�� k�ee �ea�s e€ ��e €�a�ek}se e��a�ee a�eg��e�t {�} z�e ee��eX� e€ a� leas� 3� e�a��ele �e s��se�}�e�st {3} �ke ae�}�a��e� e� �We-Wa� eaga�}�� e��ke�� e 9ys�e�t . . � {4} � s�s�e� des�g� aael ee�s��e�}ea se ��a� a ae�We�� e� �e�We��s se��flg �es}de��a� a�� 8�}�t��e�a� �se�s Wi}� aees��eda�e �A�e�ae��re da�a ee�x��ea��easT aad ��a� ��ie �e�a� , �e�We�# ��aas�a�ss�e� ��e W�� be �ess - " ��a� e�e-�e��i e� a sees�dt ��} �ke g�e��e�e� e� €e�� ded�ea�ed aeeess e�a�,ae�s �eae eaek �e� g��?-}eT ge�e=��e��a�T eel�ea�=e�a� a�d �ease� t�se} ��s ��e �eg�e�a� e�aaae� �eg��ed �� +��es e� �ke . ` P4��ese�a ea��e eex��ea��e�s bea��.- F��ke�T e�1 �e9�dea��a� s��se�}be�s ��e �eee��e a�� e� aa� ga�� e� �ke �e�a� se��ee9 e��e�e� �ea �ke s�*s�e� sl�a�� a�se �eee��e a�� aeeess el�a��e?-s e� a�1 ��e=9 e� se��ee a� �e add��e�a� el�a�ge €e� se��}ee e� ��s�a��a��e�t �6} A s�9�e� dee�g� �ka� W}�� aeeex��eela�e s��aaee�s ��elee ��a�s��ss�exs e� a� �eas� eae el�aa�e� e€ �ke 9��ee��be� Ae�We�� €e� ea�leeas� �e sega�a�e a�d�e�ees �eea�ed �� d�£�e�ea� geeg�agl��e a�eas e� �ke e}��t 4 - , . . . � � � �-�� {�} �ke ea��age e� a�� eea� �e�ev�s}et� b�ea� as� s�a�}e�,s 1 afld e�ke� ��eadeas� s}gaa}s �eq�}�ed b�r �� EEt �8} A s�*s�e� �e�}gA a�d x�a�r��eaa�ee g�ae�}ee �ee��a� �EE �eek��ea� s�a�da�d9t a�� a} A s�s�e� des�g� WH�ek e�ab�es ��a�e}pa e��ee�s �e ��g1ex�e�� ar� ex�e�ge�e� a�e�� }a a�d�e a�sdfex ��dee s�gAa� ��a�s�+ies�e� Kk}e� Wet��e1 e�e� ��de e � �e s�ge��ge9eel e� eab�e eas� p�eg�ax��g: ' meet the minimum reQUirements set forth in Minne ota Statutes Section 238.084 attached hereto, as Appendix A and incorporated herein. " � Sectic: 4 . " . That Saint Paul Legislative Code Section 434�.621 is amended so�' that the same shall read as follows: " 43 � . � 21. Establishment. Within the e £�ee e€ ��e �a�+e�TDe artment of Finence and Management Servic s there shall � � ' be an office of cable communications. The cable ` ommunications officer shall be appointed by the mayor with the onsent of the council and shall be in the unclassi�fied servic of the city until the completion of construction of the cable system , at which time the position shall become classified c nsistent with civil service com mission regulations and the o fice shall be located in the �Department of ee�+�►�a��* se��e sTFinance and Management Services. " 5 - �. � . . . Section 5. . 1 That Saint Paul Legislative Code Section 436.022 is amended so that the same shall read as follows: " 436 . 022 . Office functions . The office shall be responsible for the administration of the cable communications franchise and for the planning and development of cable communications services. The cable com munications officer's duties and responsibilities shall include, but not be limited to, � the following: .{�} Se��e as �ea�e�}�g x�ex�be� e� ��e ea��e ee��iea��eas , eex��98�e�t �� ' " (1) Se�rve as Iiaison between the city, franchisee, state • and _ federal authorities concerned with cable communications; . �3� , � ` (2) Receive . and investigate complaints concerning the , operation of the cable communications system; �4� . (3) Assure franchisee' s compliance with all applicable ordinances and laws and upon determination of any violation of same, take all necessary and appronriate action to enforce the appplicable law. 6 - , , (.!` �-��'� �� . (4) Monitor the franchisee's performance and adherence�to the terms of the franchise including, bu not limited to, construction schedule, installation olicy, retes, operational standards , maintenance technical standa�ds , system design , use of public ays, service continuity and the provision of support nd facilities for access and community programming ; ' �6} (5) Receive for review and. evaluation all da a and reports • required of the franchisee and, where appropriate, forward such data tc: interested or ffected city . • departments; and �' ��} (6) Make such recommendations and report to the city � council and mayor as may be deemed nec ssary to the � � ' zegulation and development of the cable' ommunications _ system. " Section 6. That Saint Paul Legislative Code Section 43Q 023 is hereby deleted in its entirety. . Section 7 . That Saint Paul Legislative Code Section 434�.� 1, Subd. 3 is amended so that the same shall read as follows : 7 - � � 1 "430 . 031. Rules and Regulations. � Subd. 3. Publication. Any rules or regulations adopt`ed pursuant to this sect�ion shall be published at company's expense and be readily available to subscribers. After the adoption of such regulations, the company shall file with the cit clerk and with the cable communications officer , co ies of all rules •and regulations which shall be available fo= up blic ins ection. " Section 8 . - ' That Saint Paul Legislative Code Section 436.632 is amended so that the same shall read as follows : • "438.�32. Public notice. P?��}�r�� Public notice of any city public meeting relating to amendments to the franchise _ " ordinanceTp�rformance evaluation sessions , trearings at whicb � adverse action m� be taken against the comaan or franchise renewal shall be by publication a� � eas� eaee in a local •newspaper of general circulation at least �e�fourteen days prior � �o the meeting, and posting at City Hall. aaeT eCommencing on the tenth day prior to the meeting , company shall notify its subscribers of tY�e meeting by announcement on at least two channels of its cable communication system between the hours of 7 : 0Q p. m. and 9 : 60 p.m. , for five consecutive days. Such announcement shall be made on the two local origination or access channels of highest viewership on which such announcement is feasible. " 8 - . . � �� 5ection 9 . . . That Saint Paul Legislative Code Section 430.035, Subd. 2 is hereby deleted in its entirety, and in lieu and in lace thereof a new Section 436.035, Subd. 2 is hereby adopted to read as follows : "43� .035 . AZbitration of disputes. Subd. 2. Procedures. All disputes decided � arbitration shall be �ursuant to the provisions of the Uniform Arbitration ' Act, Minnesota Statutes Sections 572.08 = 572.38 , exce t the parties shall each, within 15 days of the notice f a demand, app�int one arbitrator who is experienced in cable c munications and not employed � or in a� ma::ner affiliated wit either city — — , or company. Arbitrators shall each a ree upon the s lection of a -r - - third arbitrator, similarly qualified, within 15 da " Section 10 . That Saint Paul Legislative Code Secti n 434�.036 , � � � Subsections ( 1 ) , ( 2 ) , ( 3 ) , (4 ) , ( 5 ) , ( 6) , (7 )�, and ( 9) are amended so that the same shall read as follows: "4341.036. Penalties. The franchise shall pr vide for the deposit of a letter of credit to insure faithful pe formance by the company. For the violation of any of th foliowing provisions of the franchise, penalties shall be char eable to the letter of credit and the company as follows: (1) For failure to complete system cons ruction in accordance with the construction plan pr vided in the 9 - franchise unless the city council specifically approves the delay by motion or resolution, due to the occurrence � of conditions beyond company's reasonable � control , company 9ka�� gey $�$$ ge= �a� �e� eaek da�T e� ga�� ke�ee�T �ke de€�e�et�e� ee��}��es.-� be f ined as follows: � ' (a) u� to 5256.66 per daY for the first 60 days or part thereof , the deficiency continues ; - � (b) between 66 days and 6 months , up to $506,60 per d� or part thereof , the deficiency continues ; , (c) after 6 months , up to $1 , �06. 80 per daY or art thereof the deficiency continues. , " (2) For failure to provide data , doCuments , reports, • information or to cooperate with city during an application process or cable communications system . review, company shall pay $50.06 per day for each day, � � or part. thereof, the violation occurs or continues . . (3) For failure to test, analyze and repart on the performance of the system following a request putsuant to the franchise, the company shall pay to the city 550.�P! per day for each day, or part thereof, that such noncompliance continues. (4) Forty-five days following adoption of a resolution of council determining a failure of company to comply with construction , operational, maintenance standards, or 16 - , � � � �-� - �� the offering, company shall pay to the ci y 550.66 per .� day for each day, or part thereof , that such noncompliance continues. (5) For initiating or using a procedure or device for procuring information or data from a ubscriber ' s terminal, dwelling or business without th prior valid authorization of the affected subsc�iber a required by Section 43� .043 , "Subscriber Privacy", the company � shall pay $56 per day for each day, or p rt thereof, the violation continues. or occurs . , (6) For selling, providing or otherwise making available to anyone any informatior.' about subscriber obtained by � � monitoring transmission of any type of signal from a , subscriber 's terminal , dwelling or plac of business without the specific w= itten authoriz tion of the � subscriber as required by Section 43Q.0 4 , "Prohibit � - .� Compilation of Subscriber Lists for Sale" the company shall pay $5 , 000 . 0� for each such vi lation. In addition, the total amount of funds pai the company for this information shall be forfeited o the city by company. (7) For tapping , monitoring or for arrang ' ng to tap or monitor, o= knowin 1 permitting the ta ping of, any cable, line, signal, input device or sub criber outlet or receiver for any purpose whatsoeve without the 11 specific written authorization of the subscriber or • .� pursuant to court order, the company shall pay $16,006 per day for each day, or part thereof, the violation occurs or continues. (9) Exclusive of the penalties set out above in this section, a violation of any provision of this chapter is by Saint Paul Legislative Code Section 1.05 deemed to be a misdemeanor. " � Section 11 . That Saint Paul Legislative Code Section 43�.�37, Subd. 1 is amended so that the same shall read as follows : "430 . 637. Procedure upon determination of violation. . ° Subdivision 1. Notice , rem edy. Whenever the cable communications officer shall find that the company has violated one or more of the terms , conditions , or provisions of Section �436.636, a written notice shall be sent to the company by � `registered mail, return receipt requested, informing them of such violation or violations. Such notice shall be entitled a "Violation Notice". The company may remedy violations of paragraphs (1) through (4) of Section 430.036 within three days of tender of the registered letter bearing the "Violation Notice". If the company fails to remedy the violation within three days after tender of the registered letter, penalties shall be assesssed in accordance with the provisions in Section 430.036:and subdivision 2 of this section. 12 - � � � � �� Violation of Section 436.�36 , paragraphs (S) hrough (7) 1 shall not be subject to remedy and shall be assesss d from the first day of occurtence. " Section 12. That Saint Paul Legislative Code Section 430.043 is amended so that the same shall read as follows : � � � "43�.P�43. Subscriber privacy. No signals , including signals of an interactive com munications channel , shall be ' transmitted from a subscriber terminal e�eeg� as eg��ed �e g�e�r�de a seY��ee at��l�e�}�ee� b� , e=�i�a�ee e€ �l�e s se��e�.-for purpcses of m onitoring individual viewing patterns r practices without the express written ermission of the subscriber. • Ne� ther the company, the city, nor any other p rson shall initiate or use any procedure or device for procuring inform ation or data from a subscriber ' s terminals or terminal y any means without the prior valid authorization of the affecte subscriber. � � Valid authorization shall mean written approv 1 from the subscriber which shall not have been obtained from t e subscriber as a condition of service, except in those situati ns in which authorization is needed for billing , and which may e revoked by the subscriber at any time: without PenaltY f anY kind whatsoever. The request for such permission shall be contained in a separate document with a prominent statem nt that the subscriber is authorizing the permission with full knowledge of its provisions. Such written permission shall not xtend longer 13 than one (1) vear ; Provided, however , that the subscriber shall . � have the option to renew upon expiration. No penalty shall be invoked for a subscriber 's failure to provide or renew such author 'ization. A€�e� �ke €��s� �ea� e� a��ke��ga��e� a�d ��ag �ke �efl�k e€ �ke �ea� e€ �ke a��keX�ga�ie�s'-s ��ia1 s�gA��g� �l�e ee�+ga�� ska�� €e� eae?� yea� sai� a��ke��sa��e� �9 }� e��ee� W��ke�� e�eea�;eAT �ai= a r�e�}ee �e eaek a��ke��g}ag s��se��e� �a£ e��g k�x� e� l� e� e� k�s e = ke� � �gk� �e �e�e�e sa�d' a��ke��$a��eA �e� ��a�sx��ss}eA £�ex� �ke s��se�}�e�'s �e�x��aa�: �ke a��ke��a��eA ska�� e �e�eeab�e a� ea� ��Aae �� ke • s��se��be� W ��et�� geaa��y e € a�y �;Ad Kka�see�e�: Such authorization shall be required for each type or classification . � " of signals transmitted from a subscriber terminal. " � Section 13 . That Saint Paul Legislative Code Section 43�.044 is amended �so that the same shall read as follows: " � "438.�44 . Prohibit compilation of subscriber lists for sale. The com Qany shall not collect , com�ile or retain subscriber data exce t as necessary for internal business purposes. Neither the company, the city, nor any of their agents or employees, shall, without the specific written authorization of the affect.ed subscribez , provide data identifying or designating any subscriberT to anY art other than to the com an and its employees or agents for internal business use. This shall inc___ lvde, but not be limited to, lists of the names and 14 -. . . � � � �- �� addresses of such subscribers or an lists that identify the — — � viewing habits of subscribers. Written permis ion from the subscriber shall no�t be required for the syste s conducting system wide or individually addressed electronic s ee s for the purpose of verifying system inteqrity or monit rin for the purpose of billing. Confidentiality of such inform tion shall be subject to the provisions of this section. Aa� � �a a��e��ged s�a�� be � aele a�aa��a��e �gea �eg�es � �e �l�e at��l�e�i��g s�bsex�be� �A �ade�s�a��a��e €askier�� xe��ir�g sg e��_ea��ea e� �ke g��gese £e� Wk�ek �Y�e �x�e�x�a�}e� �s �e�r�g g �l�e�ed a�d �e Wke.� aad �e� Wka� �ee ��e ��e��a��ea �s �e be se� .-" Sectic;n 14 . � , � � That Saint Paul Legislative Code Section 436.051 is amended so that the � same shall read as follows: "4341.�51. Payment. Company shall pay a fr nchise fee of . �five percent of gross revenues.- as compensation o the city for � . use cf public riqhts-of-w� and for the admi� istration and �regulation of the franchise. Within sixt (6 ) days of the effective date of the franchise ordinance, the companY shall initiate franchise fee payments to the cit at t e rate of two hundred thousand dollars ( $ 20 � , 4�0• B6) for t e first Year (55�,06g.�6 �er guarter) and a minimum rate of tw hundred fifty thousand dollars ($256,6�6.60) each year (S62,S�Q. 0 per quarter) thereafter , until the year in which the com ted franchise payment f irst exceeds the amount of two hundred f ifty thousand 15 � , � . . dollars ($254l ,006.gP1) . These payments are to be considered in a�dvance of the franchise fees that exceed five hundred thousand dollars ( $ 5410 , 060. 041) . Such advance fees shall not be recoverable from the city in the event that the aggregate of future franchise fees does not exceed the total amounts of the advances , provided however , that the city shall not require the comPany to violate federal or state law or FCC regulations. Interest earned � the city on. such advance Payments shall not be considered a part of the franchise fee. However, should the FCC , or other federal or state regulatory a enc determine that such • earned interest is in excess of the franchise fee, the city shall deduct said amount from the next franchise fee payment due. ' " Payments shall be made on a �e�,�k��* quarterly basis. The ' installment payment for each quarter shall be due e� e� �e�e�e �ke �as� day e€ �ke �e��eH��g x�er��k no later than 45 days after expiration of the quarter when due and shall be made to the city � �department of finance and management services." . The City shall use all advance franchise fees only for cable-related purposes. All other franchise fees collected � the City shall be utilized primarily to support the City's administration of the franchise ordinance and the planning and development of cable communication services and secondarily for deposit in the general fund or for other such uses as specified � the City• 16 , . . � � � ��- �� Section 15. � . That Saint Paul Legislative Code Section 439.061 is amended so that the same shall read as follows: "43�d.fd61. Rates e��a�ee. The cit shall r ulate all rates and charges �ermitted bY state and federal laws in conformity with Section 623 of the Cable Communica ions Policy Act of 1984. The c?ty shall initially set by ordina ce rates in accordance with the successful applicant's proposal for a cable � comm unications franchise. ihe city shall also approv a schedule for m aximum rates. The initial rates shall not be anged ��}} s�e;� ��e as �l�e eex�gag�+ eex�p�e�ee ee�s��e��ea: before January 1 , 1987. The procedure to chanc-e subsciiber rates shall be in accordance with Section 434f.063 , and increases in r tes shall be based upon the concept of fair and reasonable r tes to both company and subscribers which in the aggrega e meet all � applicable costs of service provided by company` in luding fair � � ' return on invested capital , assuming efficient an economical management. Residential subscriber contracts, if any, may not exceed 12 months unless after 12 months the con ract may be terminated without penalty at the option of the sub criber." Section 16. That Saint. Paul Legislative Code Section 430.0 2 is amended so that the same shall read as follows: "43PJ.862. Request for rate adjustment. For reas in which state and federal law permit rate and char e re ulation � the 17 - � cit Ecom pany may make application for a revision of the rate — .. schedule at any time after �ke eex�ga��* kas ee�g�e�ed eeas��te��e�.- Dec_ embez 31 , 1986. " Section 17 . That Saint Paul Legislative Code Section 430.663 is amended so that the same shall read as follows: "43�.863. Pzocedure for rate adjustment and hearing. An application for an increase in the schedule of rates shall be ' filed in accordance with procedures established in Section 43g.071. The application shall be supported by statistical and . other proof indicating that the existing rate is inadequate and unreasonable and that the proposed increases therein are required . � ^ to enable � the company to render service � to fulfill its � obliga�ions under this chapter and to derive a reasonable profit therefrom. The application shall also include a statem ent of facts, opinions, substantiating documents and exhibits supporting • - the change requested. The company's petition for a rate increase shall include the following financial reports which shall� reflect the operations of the Saint Paul system only: (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; and 18 t . � � �- �� . 4 (5) Statement of current and projected subs ribers and .� penetration. The company shall answer all city requests for i formation. The company's accounting records applicable o the cable system shall be available for inspection by the city at all reasonable times. The city shall have access t records� of financial transactions for the purpose of verifying burden rates or other indirect costs prorated to the Saint Paul operation. ' The documents listed above shall include sufficient etail and/or footnotes as may be necessary to provide the c ' ty with the information needed to make accurate determinati ns as to the financial condition of the sys�zm. Ali financia statem ents shall be certified as accurate by an officer of the com pany. The company shall bear the burden of demonstrating he justness, reasonableness and accuracy of the costs. The council shall consider the followin factors in . � . approving or disapproving the applica�ion: (1) the ability of the company to render sy tem services and to derive a reasonable profit there rom under the existing rate schedule and under the roposed rate schedule; (2) the revenues and profits derived from system services; (3) the efficiency of the company; (4) the quality of the service offered by th company; (5) the original cost of the system less dep eciation; 19 - � :_ _ (6) a fair rate of return with respect to the cost of . borrowing and the rates of return on investments having similar risks to that of cable communications; (7) the extent to which the company has adhered to the terms of this agreement; (8) fairness to city residents, subscribers and users; (9) capital expenditures by the com pany in providing updated technology and services to subscribers; and (1�) such othez factors as council may deem relevant. The council will not consider any valuation based upon the . franchise right or the company's goodwill. Neither the value of the franchise nor the value of the company's goodwill shall be . ^ amortized "as an expense nor shall a return 'be paid on them. • Furthermore, the council will not consider any rate increase application based , in whole or in part, on increased cable com munications system value due to any type of transfer or � � sale. Upon receipt of a request for increases in rates under this section, the city shall have 36 days within which to determine whether it wishes to review more fully the request for increases in accordance with the procedures for rate studies and hearings set out in Section 430.071. In the event that the council takes no action within 30 days, sa�d �a�es ska�� beee�e e�€ee��e: the company m� file in the office of the cit clerk and the office of cable communications a new or amended rates schedule which 29 • . � (1-� �� shall be effective and may be charqed on the tenth ( 0th) d� (or such later date that the comPanY shall designate on its filing) after its filin and shall continue in effect unti appr� or denied � resolution or until deemed approved ur uant to the terms of this ordinance and the charter, which chart r requires a public hearing after ro er notice or pursuant t applicable state or federal law. Changes in rates taking place with or without ouncil action shall supersede the rates set out in the ordina ce initially setting forth rates aftet their effective date. T e city clerk sha�l prominently post a detailed listing of curren rates. Nothing herein or within • this cYiapter sha 1 limit the authority of the city to regulate any rate when such regulation is not specifically prohibited or preempted by fe eral or state law or regulation. " Section 18 . • � • That Saint Paul Legislative Code Section 43� 071 is hereby deleted in its entirety and in lieu and in place thereof a new Section 430J .PJ71 is hereby adopted to read as follo s: "430. 071. Modification of franchise obli ati n. A, Procedure. Following the ado tP ion and acce tp ance o the franchise and exce t as otherwise specifically ro ided herein or in the franchise ordinance, all a lications � company for a modification of franchise obli tions shall be 21 _ -. made and processed in accordance with the following � procedure: 1. If com an seeks such a modification, it shall file an application for modification of franchise obligation in the offices of cable communications and of the cit clerk. 2. The cit clerk shall lp ace the application upon the next available cit council agenda. 3. The cit council shall refer the �plication to committee. • 4. At least 20 but not more than 30 daYs after referral to com mittee, durin which time staff ' " shall have reviewed and provided the council with a written evaluation, the committee shall consider the apPlication. UQon staff reguest , the com mittee chair , m� at his or her discretion, � � extend staff's reporting deadline � no more than . 16 days• 5. No later than 66 days after said application has been filed, the committee, usin the standards set forth in subsection B of this section, shall make a recom mendation to the full council for consideration at the next scheduled council meeting. 22 ' . ' � � �� 6 . Usin the standards set forth in sub ection B of — — — .� this section, the council shall a ove or deny the requested modifications within 12 days of the filing of said application. Such 12 d� period may be extended � mutual agreement o the companY and the city• Should an extension be a reed u �on, the chair of the committee cons dering the --- -- -- -- — — ------- -- — ---- --- a�plication m� ad 'ust the committee and staff's � timetable accordingly. However , hatever the extension m� be, the committee sha 1 refer the application back to the council at least 341 days before the final d4 for approval or enial. B. Standards. � � — 1. During the period a franchise is in effect, company m� obtain from the city mod fications of . the requirements in such franchise =- � � • a. in the case of a� requirement f r facilities or e ui ment, including ublic, educational or governmental access fa ilities or e ui ment, if the franchisee emonstrates that (1) it is commercially im r cticable for the franchisee to complY with such --- ----- ---- -- --- --- ---- 2 3 _ -. reguirement ; and ( 2) the ProQsal � the . franchisee for modification of such ---------- --- ------------ -- ---- reguirement is ap ropriate because of commercial impracticability; or b. in the case of anY such reguirement for services, if the franchisee demonstrates that the mix , qualitY, and level of services required � the franchise at the time it was clr_anted will be maintained after such , modification. . 2. Com an m� not obtain modification under this section of a� requirement for services relating ' " �� to public, educational or qovernmental access. ' 3. For purPoses of this section , the term 'commercially impracticable' means with respect to a� requirement applicable to company, that it is — _ — — � � commercially impracticable for companY to comply . with such requirement as a result of a change in conditions which is beyond the control of company and the nonoccurrence of which was a basic assumption on which the requirement was based. 4 . Notwithstanding subsection 1, company may, upon 30 days, advance notice to the city, rearrange, replace, or remove a particular cable service required � the franchise if _ 24 _ � �. � � � �=- � -�� a. such service is no longer a ailable to — ---- -- — -- -- — .� . company, or b. such service is available to om an only upon the payment of a ro alt r uired under section 8(31tb) (2) of title 17 , United States Code, which company can document _ � ( i) is substantially in excess f the amount of such payment required o the date of the com an ' s offer to rovide such service, and � . ( ii) ha been s ecificall compensated for thr-ough a rate incre se or other adjustment; ', 5. Notwithstanding subsection 1, com an m� take such actions to rearrange a arti ular service . from one ser_ tier to another , or otherwise • ' • offer the service, if the rates f r all of the � service tiers involved in such ac ions are not subject to regulation under secti n 623 of the Cable Communications Polic Act of 984. " Section 19 . That Saint Paul Legislative Code Section 43fd. 81, Subds. 2, 3 , 5 , 6 and 7 are amended so that the same shall r ad as follows: 2 5 _ -. "43�.�81. Termination and forfeiture. � � Subd. 2. No fault of company. The foregoing shall not constitute a major breach if the violation occurs but it is without fault of the com pany or occurs as a result of circumstances beyond its reasonable control. Circumstances beyond the control of company shall include, but not be limited to, acts of God; strikes , lockouts or other labor disturbances; unavailability of labor or ma�terials; failure of other utilities to perform walk-out and make read and to locate underground . utilities in a time� manner; orders or restraints of an kind of • the government of the United States or the State of Minnesota or their respective departments, aqencies or officials or an civil ' , . or militarY authorit� insurrections , riots ; landslides , � earthquakes , fires, storms, droughts, floods; explosions; breakage or acc_ ident to machinery, transmission pipes or canals; or an other cause or event not reasonably within the control of �com an and not proximately caused � its negligence. Company .shall not be excused by mere economic hardship, nor by misfeasance or malfeasance of its directors , officers or employees . Subd. 3. Demand for compliance; notice of intent to request termination. �ke e��+ x+a�+ �+a#e a W��e� �e�aad ��* �eg�s�e�ed �+a�� e��a �eee�g� �eq�es�ed� �l�a� �ke ee�age�� ee�tg�� W�� a�� st�el� g�ev�s�ea� �t��eT e�de�� e� de�e�x+�aa��eA r��e1e� e� g��s�a�� e �k�s ��aae�se: St�ek ae��ee sHa�� e ea��ed a '-'�e��e��d�e 26 . . . � �- �� a�el �e�x��aa��ee� Ale��ees: �� He ��e�a��e� b�r �ke eex�gaa�* e.eA��A�es �e� a ge��ed e� 3� da�s €e��eW��g s�ek W ��ea de�aad W}��e�� W��e� g�ee� �ka� �ke ee��ee��te ae��ea k s �eea �a�ea e� }s l�e��g ae��e��+ a�d e�ged��e�9�� gr��s�ee1T ke e��* x�a� g�aee �ke �ss�e e€ �e��a�}e� e� ��e €�aael��se �e s�e ��e e��* eet�ae��: �He e}�� sl�a�� ea�se �e be se��ed �gea eex��a��T a� �eas� �� a�s g�}e� �s �ke �a�e e� s�ek ee�ae� �ee�}�gT a K��eA �e��ee e€ }a�e�� e �e.��es� s�eH �e�x��a�}ea aad �l�e ��ae aa� g�aee e€ ��ie �ee��ag: ��}e �e��ee ska�� l�e ��ea e� �ke x�ee��g aad �9s�e Wl�}e� ee��e�} �s �e eeas�de�T In the event that the city determines that the com an has s bstantiall violated a� provision of the franchise, a� rul,e r regulation � pr�omulgated pursuant hereto or a� applicable fede al, state or � — _ local law , the city shall make a written demand, b registered mail, return receipt requested, u on the company, t at it remedy . such violation and that continued violations m� e cause for � _ � termination. The city shall ive the company thi t (3PJ) days after service of the aforementioned notice to correct the violation. If the violation, breach, failure, refusal or n lect is not remedied within thirty (30) days followin� such written demand and if there is no written roof that corrective ac ion has been taken or is being actively and expeditiously urs ed, the city shall lace the issue of termination of the franchi e before the city council. 2 7 _ -. A public hearing shall be held and the com an shall be — .� provided with an opportunity to be heard � written notice, � registered mail, return receipt requested, to the company of the cause for termination, the intent to terminate and the time and lace of said up blic hearing. Subd. 5. Council determination; period for compliance. If the city cbuncil shall determine the violation by the company was the fault of com pany and within its control , the city council ° may, by resolution, declare that the franchise of the company shall be forfeited and terminated unless there is compliance . within such period as the city council may fix, such period not to be less than 60 days , provided ae e�ge��ar��y €e� ee�g��a�ee , ^ aeeel be e��aA�ed €e� €�at�� e� x�}s�eg�ese��a��ea:'however, that the � council m� not give com an an opportunity to comPly where fraud and/or misrepresentation has been alleged and rp oved to the council' s satisfaction. � � Subd. 6. Council may terminate franchise. The issue of forfeiture and termination shall automatically be placed � the city clerk upon the city council agenda at the expiration of the time set by it for compliance. The council then may terminate the franchise forthwith upon finding that company has failed to achieve compliance or may further extend the period in its discretion. 28 ` . • � �`-�d�D Subd. 7. A�pea�: �� ke e�e�� e}��+ ee��e�� e x+}na�es ��e � .� €�aaek}se� �ke eex�paa� s�ia�� ka�e ��e s�a��e�� ge�� el �eg}�a�ag �l�e daY ae�t �e��eW��g �l�e da�e �He ee��e�� e� ��a�es �ke ��a�el��se W}�� Wk�e� �e €��e aa aggea� W��H �ke P4� �ese�a ea��e ee�x��►}ea��eas �ea�d: B��}ag s�ek ge��ed a�d �a� � �l�e bea�� de�e�x��Aes �ke aggea�T �� aa aggea� }s �a�eaT �ke €� �ek}se ska�� e�a�A �� t�� e�ee a�el e��ee�T �a�ese �He �e��+ �1� �ee€ see�e� e�g��es: Judicial proceeding. In the event the it council terminates the franchise, the com an shall have t e statutory ep riod of 126 days after receiving notice of termina ion in which to �ommence an action. During such period and unt 1 a court of competent iurisdiction has deci�ed the matter aTnd the time for appeal has elapsed, the franchise shall remain in f 11 force and effect, unless sooner terminated or expired and n t renewed in accordance with law." . Section 20 . � � � That Saint Paul Legislative Code Section 4301. 82 is hereby deleted in its entirety and in lieu and in place hereof a new Section 43�l.P182 is hereby adopted to read as follow : "430 . �82. Franchise renewal. Subd. 1. Durin the 6 month period which be ins with the 36th month before expiration of the franchise, t e cit shall commence proceedings which afford the public in he franchise area appropriate notice and participation for the r ose of: 29 � � . _ (1) identifyinq the future cable-related community needs — .� and interests; and (2) reviewing the performance of the com an under the franchise during the then current term. Subd. 2.A. U on completion of proceedings under subd. 1 of this section, and if it seeks renewal of the franchise, the comPany may, on its own initiative or at the request of the city, submit a proposal for renewal. Such proposal must be filed in the offices of cable communications and of the city clerk no later than 16 days following the completion of proceedings under subd. 1, which date shall be specified � council resolution. B. Subject to the provisions of Section 624 of the Cable - . Communicati•ons Policy Act of 1984 , the proposal shall contain . such materials as the city m� require, including proposals for an upgrade of the cable system. Subd. 3. Duri_ng the 4 month Period. which begins on . completion of proceeding under subd. 1 of this section, the council shall review and evaluate company's performance and its renewal proposal. Except as otherwise specifically provided herein or in the franchise ordinance, such review and evaluation shall be conducted in accordance with the following procedures : 1. Once a renewal proposal has been filed, the city clerk shall lace it u on the next available city council agenda. 3 P! . � �`�� >:� 2, The cit cou�l sh_ refez the oroPosal to committee. � 3 . At least 2B but not more than 4H days after eferral to committee, 'durin which time staff shall ha e reviewed and pro` v�a the council with a Written eva uation, the committee shall consider the renewal ro osal. �on --- h i s or .her staff request, the committee chair ma , a discretion, extend staff_s reporting de dline � no m_ than 10 aa�s_ 4. No later than 3 months after comAletion o proceedings under subd. 1 of this sec�► the committ e sh�l m_ a recommendation to the fu11 council for onsideration ' • at the n= scheduled council mPe�9_ 4 months of completion of roc edin s under . 5_ Within _ _ — -- '� subd. 1 of this sec_ t�_ the council shal either renew the franchise or issue a r�eliminar as essment that the franchise should not be ren_ e� � If the Cit issues a preliminar a sessment that . , Subd. 4.A- _ —� _ the fzanchise should not be tenewed, at the r uest of the com an o= on its own initiative, the cit shall commence an _�� ative roceedin presided over � a hearin exa_miner to administr .._._— con--S—� Whe�– i e d w i th th e 1, the comQany, has substantiallY comQ _N __� --- erial terms of the existing fran hise a_ with mat -- — apPlicable law; 31 - . . � . 2. the quality of the company's service, includinq siqnal � quality, response to consumer complaints, and billing pra�ctices, but without regard to the mix, quality, or level of cable services or other services provided over the system, has been reasonable in light of community needs; � 3. the com an has the financial, le al , and technical ability to provide the services , facilities , and equipment as set forth in its proposal ; and 4, the company's proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of ineeting such needs and . � interests. ' B. In a� proceeding under A of this subdivision, the com an shall be afforded adequate ublic notice. The com an and the ci� shall be afforded fair opportunitY for full . •Qarticipation , includin� the right to introduce evidence � (including evidence related to issues raised in the proceeding under subd. 1) , to require the production of evidence, and to question witnesses. A transcript shall be made of a� such proceeding. C. At the completion of a proceeding under subsection A of this subdivision, the city shall issue a written decision granting or denying the proposal for renewal based upon the 32 ' ! . . � 0�� _. record of such proceeding, and transmit a co of s ch decision — -- — � to the company. Such decision shall state the reaso s therefor. D. A� denial of a proposal for renewal sh 11 be based on one or more adverse findings made with respect t the factors described in subparagraphs (1) t:�rough (4) of sub ection A of this subdivision, pursuant to the record of the ro eedin under subsection A of this .subdivision. The city m� not ase a denial of renewal on a failure to substantially com 1 with the material� terms of the franchise under subsection A(1) of thi subdivision or on events considered under subsection A(2) of thi subdivision in ,an case in which a violation of the franchise r the events considered under subsection A(2) • of this � subdivisio occur after December 31, 1984 unless the city has provided the c m an notice and the opportunity to cure, or in a� case in which it is documented that the city has waived its right to o 'ect, or has � effectively acquiesced. � � ' Subd. 5. For purposes of this section, the te m franchise expiration means the date of the expiration of th term of the franchise as provided in the franchise ordinance. Subd. 6. Notwithstanding the provisions of s bdivisions 1 through 5 of this section, the company m� submit a proposal for the renewal of. a franchise pursuant to this subdi ision at a� time, and the city ma , after affording the ub ic adequate notice and opportunity for comment, rq ant or den uch proposal at an time (including after proceedings pursuant to this section 33 - have commenced) . The provisions of subdivisions 1 through 5 of _ — — —� this section shall not apply to a decision to rg ant or deny a proposal under this subsection. The denial of a renewal pursuant to this subdivision shall not affect action on a renewal proposal that is submitted in accordance with subdivisions 1 through 5 of this section. Subd: 7. Upon the granting of a renewal of a franchise pursuant to this section, the cit and the comPany shall submit to the Commissioner of Commerce documentation certifying that the franchise and the process followed conform to state law. While , the com missioner of Commerce is reviewi� a certificate concerning a franchise renewal and durin an appeal of the . " Commissioner's decision the com_pany shall 'be permitted to � continue operation of the affected cable system unless sooner terminated in accordance with law. Subd. 8. In the event the cit makes a. final decision not � `to renew the franchise, the company shall have the statutory Qeriod of 126 daYs after receivin notice of the final determination in which to commence an action. Durin such ep riod and until a court of competent jurisdiction has decided the matter and the time for appeal has elapsed, the franchise shall remain in full force and effect, unless sooner terminated in accordance with law. 34 .,.;,.. . . _ ._ � � �. • �_ �a -4ltl v Section 21. � . That Saint Paul Legislative Code Section 436.083 Subd. 1 is amended so that the same shall read as follows : "430.QJ83 . Right of municipal acquisition. Subdivision 1. Right of first refusal; value. n the event the company forfeits or upon revocation or other te mination� of the franchise pursuant to provisions of this cha ter or the franchise ordinance or at the ,normal expiration of t e franchise term, city shall have the right of first refusal, directly or as an intermediary, to purchase the franchised cable c mmunication system. �l�e �a��e e€ �l�e €�a�el�}se 'sHa�� be ��e a�g� ga�e e€ �ke �e��aee�+ea� �a�e�e e� �aag�l��e asse�s e� �ke ��aa k�se� eab�e ee�+��a}ea��ea s�s�ex�: '-'�eg�aee�e�� a��e" st�a�� be e�e�Pa��ed l�y �He �A��-�s g�aee xte�He�: � If the cit elects to purchase the system a the normal � � � expiration of the franchise term, the value of the f anchise term shall be the fair market value as an ongoing busine s concern of the system as determined � a ap nel of three (3) independent appraisers agreed upon � the cit and the company. Should city and com an fail to agree �on the selection f three (3) independent appraisers, each shall select one a rai er. The two (2) appraisers so selected shall then select a t ird. If the city elects to purchase the system in the event o forfeiture, termination, or revocation rp ior to the normal ex iration date, 3 5 - �� ` F ` ' the purchase rice to be aid � the city shall be the company�'s capitalization cost less depreciation. "Capitalization cost" shall mean the monies invested for tangible assets, exclusive of intangible assets such as goodwill or value of the franchise. In the acceptance of a franchise, company expressly waives its rights, if any, to relocation costs that might otherwise be provided by law. The date of valuation shall be no earlier than the d� followi� the date of such forfeiture , termination or revocation. " . Section 22�. That Saint Paul Legislative Code Section 436.685 is amended ' ^ so that the "same shall read as follows: � "430.085. Abandonment or transfer. Subdivision 1. Abandonment. Notwithstanding the provisions of the franchise, the company shall not abandon any cable � �communication service or any portion thereof without having qiven three months' prior written notice to the city.a�d �l�e P4}aaese�a eab�e ee��t�a�ea��eas Hea�� The company shall not abandon any cable communication service or any portion thereof without compensating the city for damages resulting to it from such abandonment. For purposes of this section, "service" shall mean the aggregate cable communications system. 36 � « . . (;U`- 0�`�` d� Subd. 2. Transfer. .. . (1) The franchise shall not be assigned or t ansferred, either in whole or in part, or leased, sublet, or mortgaged in any manner , nor shall tit e thereto, either legal or equitable or any right, ' nterest or property therein, pass to or vest in any pe son without the prior written consent of the city council: �ke g�egesed ase�gAee x��s� skek ��r�ar�e�a� �esge s��* as � de�e��}aeel b�* �l�e e}��* aa� x�t�s� ag�ee �e e�g�� H��k a�� g�e�t�s�eas e� �l�e €�a�ek�se: , whic shall not . unreasonably be withheld, and in com iance with applicable state rules, provided howev r, that no authorization of the council shall be re u red for an � — — , mortgage, led e or other encumbrance of t is franchise ordinance or the company's cable system as securit for � financing purposes. � � ' (2) The company shall promptly notify the ity of any actual or proposed change in, or tran fer of , or acquisition by any other party of, con rol of the company. The word "control" as used herein is not limited to major stockholders , general artners and limited partners, but includes actual wo ing control in whatever manner exercised. Every chan e, transfer, . or acquisition of control of the company s all make the franchise subject to cancellation unless nd until the 37 - � . � . . , city shall have consented thereto, which consent will � . not be unreasonably withheld. For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, the city may inquire into the qualification of the prospective controlling party, and the company shall assist the city in any such inquiry. (3) The consent or approval of the council to any transfer of the company shall not constitute a waiver or release of the rights of the city in and to the streets, and . any transfer shall , by its terms , be expressly subordinate to the terms and conditions of the - " franchise. � ' (4) In the absence of extraordinary circumstances, the city will not approve any transfer or assignment of the franchise prior to substantial completion of system � ` construction of proposed system. (5) In no event shall a transfer of ownership or control be approved without successor in interest becoming a signatory to the franchise agreement. " Section 23. That Saint Paul Legislative Code Chapter 43fd is amended by adding a new Section 43fd.086 which shall read as follows: 38 ^•+i i E - Ci �r CLEFIK . � PINK � FINAq�E _ � COUn I� p� CANARY - OEP4RTMENT (j I TY OF SA I NT YAU L File NO. D� -�� 8�.l�E . ��AVOq - . . � . � O�d�nance ord� ance NO. Presented By � Referred To Committee: Dat Out of Committee By Dat �' � "43�J.A86. Removal o� cable equipment u o termination or forfeiture. Subdivision 1. Removal. U on termination r forfeiture of a franchise, the com an shall rem.ove its ca le, wires, and appliances from the streets , alleys and othe public laces within the franchise area if the city so re u sts . in writ�ng. Such request shall be served upon the company's� ocal business � registered mail , return receipt requested, an shall ive the ' company a reasonable ep riod of time to effectuat such removal. Subd. 2. Failure to remove: Should com an fail to remove the aforementioned equipment as requested � th ci�tYr the city p - � shall have the ri ht to make such removal at th expense of the company and the company shall, upon written de and, Pay to the city the cost of such work done or performed � he ci�ty. " Section 24 . ' __ This ordinance shall take effect and be� in orce thirty (30) � days from and after its passage, approval and pu lication. COUNCILMEN Requested by Department f: Yeas Nays Orew. • N;�S;e In Favor Rettman . Scheibel Against BY Sonnen Tsdesco Wi�son Form Approved by City At orney Adopled by Council: Date Certified Passed by Council Secretary By By Approved by Mayor: Date Approved by Mayor for Su ission to Council gy BY 39 , ' � (?� �-C�I� 430.035 • FRANCHISE REQUIREMENTS �� in no event Iess than 9:00 a.m.to 5:00 p.m.,Monday through Fri- day, excluding legal holidays. Company shall provide the means to accept complaint calls 24 hours a day, seven days a week In- quiries and complaint calls shall be accepted in person between 8:00 a.m. and 10:00 p.m., seven days a week. Any service com- plaints from subscribers shall be investigated and acted upon , within 24 hours. Any service complaint shall be resolved within � three calendar days. Upon notification by a subscriber, the comp- any shall credit a subscriber's account on a pro rata basis for loss � of service exceeding 48 hours within a 30-day period.The company shall keep a maintenance service ]og which will indicate the � - � nature of each service complaint, the date and time it was re- ceived, the disposition of said complaint and the time and date � thereof.This log shall be made available for periodic inspection by city. . • Subd. 2. Information concerning procedures, etc.As subscri- bers are connected or reconnected to the system, the company , • ' shall,.by appropriate means, such as a card or brochure, furnish information concerning the procedure� for making-inquiries or complaints,including the name,address and local telephone num. ' . ber of the employee or employees or agent to whom such inquiries -- r ^ or complaints are to be addressed, and furnish information con- �' cerning the city office responsible for administration of the . franchise with the address and telephone number of the office. 430.035. Arbitration of disputes. Subdivision 1. Demand for arbitration. In the event city and - • company cannot resolve a dispute which arises as a result of the construction, operation or management of the cable com:siunica- j • ' • tion system and which is not governed by Section 430.036, either . • part,y may give notice of a demand to the other for arbitration. . Subd 2. Procedurea. Arbitration shall commence.and proceed according to law except as follows: . (1) The parties shall, within 15 days, appoint one arbitrator each - who is experienced in cable communications and not � employed by or in any manner affiliated with either city or . . company. Arbitrators shall each agree upon the selection of a third arbitrator, similarly qualified, within 15 days. (2) Within 30 days after appointment of all arbitrators and upon . 10 days' written notice to parties, the board of arbitrators shall commence a hearing on the matter in dispute. 2/28l81 102 � . � ` • � ��-�� . 430.035 � � LEGISLATIVE CODE � . � .� � � (3) The hearing shall be recorded and may be transcribed at the � �request of either party. All hearing p:�ceedings, debate and� deliberations shall be open t�the public and at such times and places as contained in the notice or as thereafter publicly � stated in the order to adjourn, except as otherwise authorized by the city attorney. .• (4) At the close of the hearings and within 30 days, the board shall prepare findings and decision agreed upon by a majority of the board which shall be filed with the city and served by . • mail upon the company. Unless the parties extend by mutual agreement the time which the board has to make a decision, the proceedings shall become null and void and shall be started anew. If new proceedings are started they shall be . _ based upon the record of the original proceeding.Supplemen- tal evidence may be taken at the request of tl�e new panel of arbitrators in accordance with the procedures outlined in this section. � (5) The decision of the board shall be final and binding upon the parties. (6) Eithrr party may seek judicial relief in the following circum- ( " stances: _ � l- (a) a party fails to select an arbitrator; ' ,, (b) the arbitrators fail to select a third arbitrator; . . • (c) one or more arbitrators are unqualified; (d) designated time limits have been exceeded; (e) the board has not proceeded expeditiously; and (fl based upon the record the board abused its discretion. � � (7) In the event a court of competent jurisdiction determines the • board has abused its discretion, it may order the arbitration . procedure repeated and issue findings, orders and directions, with costs of suit to be awarded to the prevailing party. (Sj Cost of arbitration shall be borne equally unless the board finds that either city or company was unreasonable with , regard to the matter which was in dispute, in which case,cost , may be apportioned so that less or none of the costs may be borne by one party. 430.036. Penalties. The franchise shall provide for the deposit of a letter of credit to insure faithful performance by the company.For � 1026 2!?RIHt � � I ��.,�,��, - y�� f .�:F' f p� p' ' �s ! +l •'��./7 .tif / yi�� 34 }�b .�9'+�F¢�t� ' ��l ,�s� Y♦ � t 'i C ��; f �y A i�'•�� 6t1�� . :��., i fd�..�",+.�.�,�'s •`.r1Y�Fc¢,x� +" t. . :fa' � �*y , ..�'�z� '' �� 1 �� t�.�. t� �� , � �� . '� 4 rd {�yy�� >;<s. '� # �i �!�i. � . . . 3�':�v M J" * F � 3 r b'�"s� I' ,. �� .�k . . . x ^��. ..: ��.:7 � „lt,r'i�x*.4 :.� -. r,-; �"r • '� s . Aw. 7��r t,ta . - K- '"1 �; �-��„ ,,a�`a� ;�w r ,n�.r� �e"� _i..� c , x, ^ j �, - .: aa.:?g '-....: ,. ,;. , , .�....�'. %� ,__::��_ .� . , .�- . . , . � ; . t :' a '�`��.�t ,z,,.d+ I `�� lt._.� �� , 7r� �j ' ' ��2�� J� lst �_0�.%1—�'Sr 2n�1 ,-� � _--r��` �`� � a:�a._ G�--�..eG:z�L_!, 3rd '`y r� 7'�� Adopted � --1 r �� _� . Yeas Nays DREW NICOSIA � d� - �d � . /�� rr�.v SCHEIBEL SONNEN WILSON ~ MR. PRESIDENT TEDESCO ( � � I