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� 0 rdin�nce Ordinance N 0. '�P ll?� �
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Presented By David Hozza
Referred To Committee: Date
Out of Committee By Date
An ordinance providing for administration and
regulation of cable communications franchises;
establishing requirements for franchise;
establishing an office of cable communications;
amending the Saint Paul Legislative Code by,
adding Chapter . �
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
SECTION ls, CABLE COMMUNICATIONS SERVICE
1.01. STATEMENT OF LEGISLATIVE FINDINGS, INTENT AND PURPOSE
The Council finds that the orderly regulation of cable com-
munications within. the City of Saint Paul will help insure the
most effective distribution of quality cable communication service
at .acceptable rates to the subscribers and reasonable return to
the system operators.
1.02. DEFINITIONS
For the purpose of this ordinance and any franchise granted
subject to the conditions of this ordinance, the following terms,
phrases, words, and their derivations shall have the meaning given
herein. When not inconsistent with the context, words used in the
present tense include the future, words in the plural number in-
clude the singular number, and words in the singular number include
the plural number. The words "shall" and "will" are mandatory
and "may" is permissive. Words not defined shall be given their
COUNCILMEN �
Yeas Nays Requested by Department of:
In Favor
Against By
Form Ap ro ed by City A torn
Adopted by Council: Date �
Certified Passed by Council Secretary BY '
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
By BY ,
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common and ordinary meaning.
a. "Access Channels" means those channels dedicated by law,
rule, regulation or commitment of the Company to the programming
use of the general public, local government, educational insti-
tutions or the leased use of commercial or noncommercial entities.
b. "Cable Communications Officer" means that individual,
official or employee of the City charged with the responsibility
of administering the terms and conditions of a cable communica-
tions franchise.
c. "Cable Communications System or Service" shall mean a
system of antennas, cables, wires, lines, towers, waveguides, or
other conductors, converters, equipment or facilities, designed
and constructed for the purpose of producing, receiving, trans-
mitting, amplifying and distributing, audio, video and other forms
of electronic or electrical signals, located in the City. Said
definition shall not include any such facility that serves or will
serve only subscribers in one or more multiple unit dwellings
under common ownership, control or management, and does not use
City rights-of-way.
d. "City" is the City of Saint Paul, a municipal corporation,
in the State of Minnesota.
e. "Interactive Channel" means a signaling path provided by
a cable communications system to transmit signals of any type
from a subscriber terminal to another point in the cable communi-
cations system.
f. "Company" means the grantee of rights under a franchise,
or successor, transferee or assignee.
g. "Connection" shall mean the attachment of the drop to
the first radio or television set of the subscriber.
h. "Council" shall mean the governing body of the City of
Saint Paul.
i. "Drop" shall mean the coaxial cable that connects the
facility to the nearest feeder cable of the cable network.
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j . "FCC" shall mean the Federal Communications Commission
and any legal�y appointed, designated or elected agent or successor.
k. "Franchise" shall mean the grant of rights and privileges
to construct and operate a cable communications system.
l. "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, from
or in connection with the operation of the cable communication
system governed by this ordinance; provided, however, all revenues,
shall include but not be limited to, basic subscriber service
monthly fees, pay cable fees, installation and reconnection fees,
leased channel fees, converter rentals, studio rental, production
equipment and personnel fees, and advertising revenues; and that
this shall not include any taxes on services furnished by the Com-
pany 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.
1.03. FRANCHISE REQUIREMENT
No person shall operate or participate in the operation of a
cable communication system within the City of Saint Paul without
first obtaining a franchise issued by the City of Saint Paul. A
cable communication system for the purposes of this section shall
not include a system that serves only subscribers in one or more
multiple unit dwellings under common ownership, control, or manage-
ment which does not use city rights-of-way.
1.04. REQUIREMENT FOR CERTIFICATE OF CONFIRMATION, MCCB
APPROVAL AND COMPLIANCE WITH ALL STATE AND FEDERAL
LAWS
No person shall operate or participate in the operation of a
cable communication system within the City of 5aint Paul without
first obtaining a Certificate of Confirmation from the Minnesota
Cable Communications Board. Any cable communication system within
the City of Saint Paul shall at all times comply with all required
laws and regulations of the state and federal government or any
administrative agencies thereof not later than one year after their
promulgation.
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1.05. FRANCHISE: TERMS AND CONDITIONS
A nonexclusive fifteen (15) year franchise may be granted by
ordinance to a cable communications company to construct and op-
erate a system to serve the City of Saint Paul. The provisions
of this ordinance shall be incorporated by reference into the
franchise. The City and Company may agree to additional terms
and conditions as may be deemed necessary, providing that said
terms and conditions are consistent with the provisions of this
ordinance and applicable law.
No franchise shall be awarded by the City which does not re-
quire the following:
a. The construction of a distribution system (trunk and
feeder cables) throughout all areas of the City within three (3)
years of the franchise ordinance adoption;
b. The delivery of at least 30 channels to subscribers;
c. The activation of two-way capability throughout the
system;
d. A system design and construction so that a network(s)
serving residential and institutional users will accommodate
interactive data communications, and that the total network trans-
mission time will be less than one-tenth of a second;
e. The provisions of four dedicated access channels (one
each for public, governmental, educational and leased use) plus
the regional channel required by rules of the Minnesota Cable
Communications Board. Further, all residential subscribers who
receive all or any part of the total services offered on the
system shall also receive all access channels on all tiers of
service at no additional charge for service or installation;
f. A system design that will accommodate simultaneous video
transmissions on at least one channel of the subscriber network
for cablecast to separate audiences located in different geographic
areas of the City;
g. The carriage of all local television broadcast stations
and other broadcast signals required by the FCC;
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h. A system design and maintenance practices meeting FCC
technical standards; and
i. A system design which enables municipal officers to im-
plement an emergency alert via audio and/or video signal trans-
mission which would override or be superimposed on cablecast
programming.
SECTION 2. OFFICE OF CABLE COMMiJNICATIONS
2.01. ESTABLISHMENT
Within the office of the Mayor, there shall be an office of
Cable Communications. The Cable Communications Officer shall be
appointed by the Mayor with the consent of the Council, and shall
be in the unclassified service of the City until the completion of
construction of the cable system, at which time the position shall
become classified consistent with Civil Service Commission regula-
tions and the office shall be located in the Department of Commun-
ity Services.
2.02. OFFICE FUNCTIONS
The office shall be responsible for the administration of the
cable communications franchise and for the planning and develop-
ment of cable communications services. The cable communications
officers ' duties and responsibilities shall include, but not be
limited to, the following:
a. Serve as nonvoting member of the Cable Communications
Commission;
b. Serve as liaison between the City, franchisee, state and
federal authorities concerned with cable communications;
c. Receive and investigate complaints concerning the opera-
tion of the cable communications system;
d. Assure franchisee' s compliance with all applicable ordi-
nances and laws and upon determination of any violation of same,
take all necessary and appropriate action to enforce the applicable
law;
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e. Monitor the franchisee' s performance and adherence to the
terms of the franchise including, but not limited to, construction
schedule, installation policy, rates, operational standards, main-
tenance, technical standards, system design, use of public ways,
service continuity and the provision of support and facilities for
access and community programming;
f. Receive for review and evaluation all data and reports
required of the franchisee and, where appropriate, forward such
data to interested or affected City departments; and
g. Make such recommendations and reports to the City Council
and Mayor as may be deemed necessary to the regulation and develop-
ment of the cable communications system.
2.03. CABLE COMMUNICATIONS COMMISSION
a. There shall be established a citizens ' advisory committee
entitled the Saint Paul Citizens Cable Communications Commission.
The Commission shall consist of nine (9) members, appointed by the
Mayor with the approval of the City Council, who shall serve with-
out remuneration. The cable communications officer shall serve as
a nonvoting member of the Commission. Appointments to the Commis-
sion shall be made in conformity with applicable federal, state and
local laws regarding discrimination. Appointees may not be commer-
cially involved in cable communications activities or other commun-
ications media;
b. Members shall serve for two (2) years. The terms of the
members shall be staggered, with four (4) members appointed for
one (1) year terms, and five members appointed for two (2) year
terms. Vacancies shall be filled by appointment by the Mayor with
the approval of City Council;
c. The Commission shall have the following duties and
responsib ilities :
(1) Monitoring development of the cable communication system,
overseeing rate adjustments, testing the performance of the system
and resolving consumer complaints;
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(2) Preparing and submitting an annual report to the City,
the Company and the Minnesota Cable Communications Board assess-
ing the performance of the Company according to the terms of the
franchise.
(3) Making recommendations to the City regarding the appar-
ent or likely need for upgrading the cable communication system
to meet the current state of-the-art;
(4) Preparing and submitting to the City, the Company and
the Minnesota Cable Communications Board three (3) months prior to
the expiration of the franchise and three (3) months prior to the
expiration of the Certificate of Confirmation, a report which
shall include a written appraisal of the performance of the fran-
chisee over the entire length of the franchise. The report shall
also include recommendations for revised or additional provisions
of the franchise, considering at least the following items :
channel capacity, channels for access cablecasting, two-way capa-
bility and the need for further service to be extended within the
franchised area based upon a reassessment of the communication
needs of the City in relation to the services generally offered by
the cable industry.
d. Such other duties as the Mayor or City Council may speci-
fy.
e. The Commission shall meet no less than twice annually and
at the call of the Chairman. A11 meetings of the Commission shall
be open to the public.
SECTION 3. ADMINISTRATION AND REGULATION
3.01. RULES AND REGULATIONS
a. In addition to the inherent powers of the City to regu-
late and control the franchise, and those powers expressly reserved
by the City, or agreed to and provided for herein and within the �
franchise, the right and power is hereby reserved by the City to
promulgate such additional reasonable regulations as it shall find
necessary in the exercise of its lawful powers and in furtherance
of the terms and conditions of this ordinance and the franchise.
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b. The City may also adopt such regulations at the request
of Company upon application to the City.
c. Any rules or regulations adopted pursuant to this section
shall be published at Company' s expense and be readily available
to subscribers.
d. The City reserves the right to determine how the access
channels will be administered.
3.02. PUBLIC NOTICE
Minimum public notice of any City public meeting relating to
the franchise shall be by publication at least once in a local
newspaper of general circulation at least ten (10) days prior to
the meeting, posting at City Hall and commencing on the tenth day
prior to the meeting, Company shall notify its subscribers of the
meeting by announcement on at least two (2) channels of its cable
communication system between the hours of 7:00 p.m. and 9:00 p.m. ,
for five (5) consecutive days. Such announcement shall be made
on the two channels of highest viewership on which such announce-
ment is feasible.
3.03. PERFORMANCE EVALUATION SESSIONS
a. The City Council ma�r require cable communication system
performance evaluation sessions within thirty (30) days of the
third, fifth and tenth anniversary dates of the Company' s award
of the franchise and as required by federal and state law. Al1
such evaluation sessions shall be open to the public.
b. Special evaluation sessions may be held at any time dur-
ing the term of the franchise at the request of the Council or
the Company.
c. All evaluation sessions shall be open to the public.
Notice of all evaluation sessions shall be given in accordance with
the procedure set out in Section 3.02.
d. Topics which may be discussed at any scheduled or special
evaluation session may include, but not be limited to, service
rate structures; franchise fee; penalties; free or discounted
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services; application of new technologies; system performance;
services provided; programming offered; customer complaints;
privacy; amendments to this ordinance; judicial and FCC rulings;
line extension policies; and Company or City rules.
e. Members of the general public may add topics by working
through the City or Company.
f. During a review and evaluation by City, Company shall
fully cooperate with City and shall provide such information and
documents as City may request to reasonably perform the review.
g. If at any time during its review, the City Council deter-
mines that reasonable evidence exists of inadequate cable commun-
ication system performance, it may require Company to perform
tests and analyses directed toward such suspected inadequacies at
the Company' s own expense. Company shall fully cooperate with
City in performing such testing and shall prepare results and a
report, if requested, within thirty (30) days after notice. Such
report shall include the following information:
(1) The nature of the complaint or problem which precip-
itated the special tests.
(2) What system component was tested.
(3) The equipment used and procedures employed in testing.
(4) The method, if any, in which such complaint or prob-
lem was resolved.
(5) Any other information pertinent to said tests and
analysis which may be required.
The Council may require that tests be supervised, at Company' s
experise, by a professional engineer, not on the permanent staff
of the Company. The engineer shall sign all records of special
tests and forward to the City such records with a report interpret-
ing the results of the tests and recommending actions to be taken.
h. Tests required pursuant to Section 3.03 shall only be
performed in response to specific complaints or problems that
give the City reason to believe that such tests are necessary to
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protect the public against substandard cable service.
3.04. COMPLAINTS PROCEDURE
a. During the term of the franchise, and any renewal thereof,
the Company shall maintain within the City a local business
office or offices for the purpose of receiving and resolving all
complaints regarding the quality of service, equipment malfunc-
tions, billings disputes, and similar matters. The office must be
reachable by a local, toll-free telephone call, and provide the
City with the name, address and telephone number of a person who
will act as the Company' s agent to receive complaints regarding
quality of service, equipment malfunctions, billings and similar
matters. The local office shall be open to receive inquiries or
complaints from subscribers during normal business hours, and in
no event less than 9:00 a.m. to 5 :00 p.m. , Monday through Friday,
excluding legal holidays. Company shall provide the means to
accept complaint calls twenty-four (24) hours a day, seven days a
week. Inquiries and complaint calls shall be accepted in person
between 8:00 a.m. and 10:00 p.m. , seven days a week. Any service
complaints from subscribers shall be investigated and acted upon
within twenty-four (24) hours. Any service complaint shall be
resolved within three (3) calendar days. Upon notification by a
subscriber, the Company shall credit a subscriber's account on a
pro rata basis for loss of service exceeding forty-eight (48) hours
within a thirty (30) day period. The Company shall keep a mainten-
ance service log which will indicate the nature of each service
complaint, the date and time it was received, the disposition of
said complaint and the time and date thereof. This log shall be
made available for periodic inspection by City.
b. As subscribers are connected or reconnected to the system,
the Company shall, by appropriate means, such as a card or bro-
chure, furnish information concerning the procedures for making
inquiries or complaints, including the name, address and local
telephone number of the employee or employees or agent to whom
such inquiries or complaints are to be addressed, and furnish in-
formation concerning the City office responsible for administration
of the franchise with the address and telephone number of the
office.
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3.05. ARBITRATION OF DISPUTES
a. In the event City and Company cannot resolve a dispute
which arises as a result of the construction, operation or man-
agement of the cable communication system and which is not governed
by Section 3.06, either party may give notice of a demand to the
other for arbitration;
b. Arbitration shall commence and proceed according to law
except as follows:
(1) The parties shall, within fifteen (15) days, appoint
one arbitrator each who is experienced in cable communications
and not employed by or in any manner affiliated with either City
of Company. Arbitrators shall each agree upon the selection of a
third arbitrator, similarly qualified, within fifteen (15) days;
(2) Within thirty (30) days after appointment of all arbi-
trators and upon ten (10) days' written notice to parties, the
board of arbitrators shall commence a hearing on the matter in
dispute;
(3) The hearing shall be recorded and may be transcribed at
the request of either party. All hearing proceedings, debate and
deliberations shall be open to the public and at such times and
places as contained in the notice or as thereafter publicly stated
in the order to adjourn, except as otherwise authorized by the
City Attorney;
(4) At the close of the hearings and within thirty (30)
days, the board sha11 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. Supplemental evidence may be
taken at the request of the 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;
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(6) Either party may seek judicial relief in the following
circumstances:
(a) a party fails to select an arbitrator;
(b) the arbitrators fail to select a third arbitrator;
(c) one or more arbitrator is unqualified;
(d) designated time limits have been exceeded;
(e) the board has not proceeded expeditiously; and
(f) 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;
(8) Cost of arbitration shall be borne equally unless the
board finds that either City or Company was unreasonable with re-
gard 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.
3.06. PENALTIES
The franchise shall provide for the deposit of a letter of
credit to insure faithful performance by the Company. For the
violation of any of the following provisions of the franchise,
penalties shall be chargeable to the letter of credit and the Com-
pany as follows:
a. For failure to complete system construction in accordance
with the construction plan provided in the franchise unless the
City Council specifically approves the delay by motion or resolu-
tion, due to the occurrence of conditions beyond Company' s control,
Company shall pay 'I�,vo Hundred Dollars ($200.00) per day for each
day, or part thereof, the deficiency continues.
b. For failure to provide data, documents, reports, informa-
tion or to cooperate with City during an application process or
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cable communication system review, Company shall pay Fifty Dollars
($50.00) per day for each day, or part thereof, the violation
occurs or continues.
c. For failure to test, analyze and report on the perform-
ance of the system following a request pursuant to the franchise,
the Company shall pay to the City, Fifty Dollars ($50.00) per day
for each day, or part thereof, that such noncompliance continues.
d. Forty-five (45) days following adoption of a resolution
of Council determining a failure of Company to comply with con-
struction, operational, maintenance standards, or the offering,
Company shall pay to the City �ao Hundred Dollars ($200.00) per
day for each day, or part thereof, that such noncompliance continues.
e. For initiating or using a procedure or device for procur-
ing information or data from a subscriber' s terminal, dwelling or
business without the prior valid authorization of the affected
subscriber as required by Section 4.03, "Subscriber Privacy", the
Company shall pay Fifty Dollars ($50.00) per day for each day, or
part thereof, the violation continues or occurs.
. f. For selling, providing or otherwise making available to
anyone any information about subscribers ob:tained by monitoring
transmission of any type of signal from a subscriber' s terminal,
dwelling or place of business without the specifie written author-
ization of the subscriber as required by Section 4.04, "Prohibit
Compilation of Subscriber Lists for Sale" , the Company shall pay
Five Thousand Dollars ($5,000.00) for each such violation. In
addition, the total amount of funds paid the Company for this in-
formation shall be forfeited to the City by Company.
g. For tapping, monitoring or for arranging to tap or mon-
itor, or permitting the tapping, any cable, line, signal, input
device or subscriber outlet or receiver for any purpose whatsoever
without the specific written authorization of the subscriber or
pursuant to court order, the Company shall pay Ten Thousand Dollars
($10,000.00) per day for each day, or part thereof, the violation
occurs or continues.
h. Each violation of each provision shall be considered a
separate violation for which a separate penalty can be imposed.
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i. Exclusive of the penalties set out above in this section,
a violation of any provision of this ordinance is by Saint Paul
Legislative Code deemed to be a misdemeanor.
j. The rights reserved by the City herein are in addition
to all other rights and remedies the City may have under this
franchise or any other law and are not intended to be exclusive.
3.07. PROCEDURE UPON DETERMINATION OF VIOLATION
a. Whenever the Cable Communications Officer shall find that
the Company has violated one or more of the terms, conditions, or
provisions of Section 3.06, 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 en-
titled a "Violation Notice" . The Company may remedy violations of
subdivisions a through d of Section 3.06 within three (3) days of
tender of the registered letter bearing the "Violation Notice" .
If the Company fails to remedy the violation within three (3) days
after tender of the registered letter, penalties shall be assessed
in accordance with the provisions in Section 3.06.
Violation of Section 3.06, subdivisions a through g shall not
be subject to remedy and shall be assessed from the first day of
occurrence.
b. Whenever a penalty has been assessed, the Company may,
within ten (10) days of the tender of written notice as provided
for in Section 3.07 (a) , notify the Cable Communications Officer
by registered mail that there is a dispute as to whether or not
a violation has, in fact, occurred. Such notice shall specify
with particularity the matters disputed by the Company.
The Cable Communications Officer shall, upon receipt of the
Company' s letter, cause the matter to be referred to the City
Council for a hearing. A hearing shall be held within thirty (30)
days of receipt of the Company' s 7� tter by a Committee designated
by the Council, or if mutually agreed to by the parties, by an
independent hearing examiner appointed by the Council, to determine
if there is reason to believe the Company has committed a viola-
tion of Section 3.06. After the hearing and review of the Commit-
tee' s report or hearing examiner' s report, the Council shall
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determine if there is reason to believe the Company has committed
a violation of Section 3.06, and shall make written findings of
fact relative to their determination.
c. Upon a determination by the Council that there is reason
to believe a violation has taken place, or in the event the Com-
pany chooses not to dispute the finding of the Cable Communications
Officer, the City Dir ector of Finance and Management Services
shall immediately make withdrawals against the letter of credit
provided for in the franchise ordinance in accordance with the
penalties specified for such violations in Section 3.06, and
shall continue to make withdrawals until the Company has satisfac-
torily remedied the term, condition, or provision violated.
3.08. REPORTS AND RECORDS
Company shall fully cooperate in making available at reason-
able times, and the City shall have the right to inspect the books,
records, maps, plans and other like materials of the Company
applicable to the Saint Paul System, at any time during normal
business hours; provided where volume and convenience necessitate,
Company may require inspection to take place on Company premises.
SECTION 4. RIGHTS OF INDIVIDUALS
4.01. EQUAL OPPORTUNITY FOR SERVICE
Company shall not deny service, deny access, or otherwise
discriminate against subscribers, channel users, or general citi-
zens on the basis of race, color, creed, religion, ancestry,
national origin, sex, affectional preference, disability, age,
marital status, or status with regard to public assistance. Com-
pany shall comply at all times with all other requirements of
federal, state and local laws and regulations, and all executive
and administrative orders relating to nondiscrimination which are
hereby incorporated and made a part of this ordinance by reference.
4.02. EQUAL OPPORTUNITY EMPLOYMENT
Company shall strictly adhere to the equal employment oppor-
tunity requirements of the federal government as well as state and
local laws and regulations and shall keep a record of employment
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statistics which shall be available for public inspection during
normal business hours.
4.03. SUBSCRIBER PRIVACY
No signals, including signals of an Interactive Communications
channel, shall be transmitted from a subscriber terminal except as
required to provide a service authorized by ordinance of the sub-
scriber. The Company, the City and any other person shall neither
initiate nor use any procedure or device for procuring information
or data from a subscriber' s terminals or terminal by any means,
without the prior valid authorization of the affected subscriber.
Valid authorization shall mean written approval from the subscriber
which shall not have been obtained from the subscriber as a condi-
tion of service, except in those situations in which authorization
is needed for billing, and which may be revoked by the subscriber
at any time. The request for such permission shall be contained in
a separate document with a prominent statement that the subscriber
is authorizing the permission with full knowledge of its provi-
sions. After the first year of authorization and during the month
of the year of the authorization' s initial signing, the Company
shall, for each year said authorization is in effect without revo-
cation, mail a notice to each authorizing subscriber informing him
or her of their right to revoke said authorization for transmission
from their terminal. The authorization shall be revocable at any
time by the subscriber without penalty of any kind whatsoever.
Such authorization shall be required for each type or classifica-
tion of signals transmitted from a subscriber terminal.
4.04. PROHIBIT COMPILATION OF SUBSCRIBER LISTS FOR SALE
The Company, the City, or any of their agents or employees,
shall not, without the specific written authorization of the
affected subscriber, provide data identifying or designating any
subscriber. Any data authorized shall be made available upon re-
quest to the authorizing subscriber in understandable fashion, in-
cluding specification of the purpose for which the information is
being gathered and to whom and for what fee the information is to
be sold.
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4.05. MONITORING PROHIBITED
The Company, the City, or any of their agents shall not tap
or monitor, arrange for the tapping or monitoring, or permit any
other person to tap or monitor, any cable, line, signal, input
device, or subscriber outlet or receiver for any purpose whatso-
ever, without the prior valid authorization of the affected
subscriber.
SECTION 5. FRANCHISE FEE
5.01. PAYMENT
Company shall pay a franchise fee of five percent (5%) of
gross revenues. Payments shall be made on a monthly basis. The
installment payment for each shall be due on or before the last day
of the following month and shall be made to the City Department of
Finance and Management Services.
5.02. RENEGOTIATION
The franchise fee set forth in 5.01 shall be subject to re-
negotiation at such time as laws and regulations permit.
SECTION 6. RATES AND RATE ADJUSTMENT
6.01. RATES ORDINANCE
The City shall initially set by ordinance rates in accordance
with the successful applicant' s proposal for a cable communications
franchise. The City shall also approve a schedule for maximum
rates. The initial rates shall not be changed until such time as
the Company completes construction. The procedure to change sub-
scriber rates shall be in accordance with Section 6.03 of this
ordinance, and increases in rates shall be based upon the concept
of fair and reasonable rates to both Company and subscribers which
in the aggregate meet all applicable costs of service provided by
Company including fair return on invested capital, assuming effi-
cient and economical management. Residential subscriber contracts,
if any, may not exceed twelve (12) months unless after twelve (12)
months the contract may be terminated without penalty at the option
of the subscriber.
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6.02. REQUEST FOR RATE ADJUSTMENT
Company may make application for a revision of the rate sched-
ule at any time after the Company has completed construction.
6.03. PROCEDURE 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 7.
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 obligations under this
ordinance and to derive a reasonable profit therefrom. The appli-
cation shall also include a statement of facts, opinions, substan-
tiating 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
(5) Statement of current and projected subscribers and
penetration.
The Company shall answer all City requests for information.
The Company' s accounting records applicable to the cable sys-
tem shall be available for inspection by the City at all reasonable
times. The City shall have access to records of financial trans-
actions for the purpose of verifying burden rates or other indirect
costs prorated to the Saint Paul operation. The documents listed
above shall include sufficient detail and/or footnotes as may be
necessary to provide the City with the information needed to make
accurate determinations as to the financial condition of the system.
All financial statements shall be certified as accurate by an
������
. �.
19.
officer of the Company. The Company shall bear the burden of
demonstrating the 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 System services
and to derive a reasonable profit therefrom under
the existing rate schedule and under the proposed
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 the Company;
(5) the original cost of the System less depreciation;
(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, subscriber and users;
(9) capital expenditures by the Company in providing
updated technology and service to subscribers; and
(10) such other 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. Fur-
thermore, the Council will not consider any rate increase appli-
cation based, in whole or part, on increased cable communications
system value due to any type of transfer or sale.
�� ���y
zo.
Upon receipt of a request for increases in rates under this
section, the City shall have thirty (30) 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 7 of this ordinance. In the event
that the Council takes no action within thirty (30) days, said
rates shall become effective.
Changes in rates taking place with or without Council action
shall supersede the rates set out in this ordinance after their
effective date. The C ity Clerk shall prominently post a detailed
listing of current rates.
Nothing herein or within this ordinance shall limit the auth-
ority of the City to regulate any rate when such regulation is not
specifically prohibited or preempted by federal or state law or
regulation.
SECTION 7. APPLICATIONS PROCEDURE
7.01. APPLICATIONS FOR CHANGE IN ORDINANCE OR FRANCHISE
Except as otherwise specifically provided for herein, follow-
ing the adoption and acceptance of the franchise, all applications
by the Company effectuating a change in this ordinance or the
franchise including, but not limited to, chang� in rates, services,
programming of activated and non-activated channels, construction
schedules, transfer of ownership, proposed changes in regulations
or ordinances, importation of distant broadcast signals, etc. ,
and as otherwise authorized by or made pursuant to the franchise,
shall be made and processed by giving notice to the City in accor-
dance with the following procedure:
a. Applications shall be in a form prescribed by the City
and shall contain sufficient facts and information acceptable to
the City.
b. An application may be rejected for inadequacy by City if
it contains an inadequate description of what is being applied for
is not in an acceptable form, or contains insufficient facts and
information for adequate consideration.
������
21.
c. A rejection of an application for inadequacy shall be in
writing by notice which shall state the deficiencies. The notice
shall not be construed to limit rejection for further and differ-
ent deficiencies on subsequent applications.
d. Upon acceptance, City staff shall review the application.
The staff may submit the application to Council if it deems the
application adequate and complete and in need of no further staff
study or report. The City shall give notice to Company within
thirty (30) days of acceptance if it will study the application
prior to submission to Council. The study shall be completed with-
in forty-five (45) days after notice is given to the Company by the
City unless such period is extended for up to an additional forty-
five (45) days by motion of Council or a longer period of time by
agreement with Company.
At the conclusion of the study, City staff may submit the
application, study and other information, documents and exhibits to
the Council for consideration.
At the expiration of the study period, if the matter has not
been placed upon the Council agenda, Company may notify the City
Clerk in writing to place the application upon the Council agenda
for the next regular meeting, and the City Clerk shall do so.
e. During the study period, Company shall fully cooperate
with City in providing information and documents which are related
to and reasonably necessary in the proper evaluation of the appli-
cation. Failure of Company to so cooperate or Company' s unreason-
able delay in providing information and documents shall be grounds
for a reasonable extension by Council of the study period or, if
either the lack of cooperation or the delay substantially impairs
the study, Council may summarily deny the application.
f. Upon submission to Council, it shall review the applica-
tion and any studies, information and documents which accompany it.
Council shall approve or deny the applications based on the record
within thirty (30) days, unless a public hearing is set. If
Council desires a public hearing, or if one is required, Council
shall set a public hearing within thirty (30) days. Notice of the
public hearing shall be given in accordance with Section 3.02.
g. At a public hearing pursuant to this application process,
Council may hear reports from staff, Cable Communications Commission
���85y
22.
consultants, and the public. Council shall provide a reasonable
but not unlimited opportunity for rebuttal. Council may impose
reasonable time limitations on verbal presentations which may be
selectively waived to facilitate adequate evaluation of the appli-
cation.
h. If, at the hearing, Council determines that additional
information or documents are necessary to adequately evaluate the
application, it may continue the hearing from time to time pending
augmentation of the record. A continuance shall not exceed fifteen
(15) days at a time.
i. At the close of the hearing, Council shall, within thirty
(30) days, approve, deny or modify the application. Notice of
denial and the grounds therefor may be in writing if requested.
Reasonable conditions in furtherance of the purpose and intent of
the franchise may be attached by Council to an approval or modifi-
cation and may be acted upon by Company upon acceptance in writing
by Company.
j . Any time limit may be waived by consent of both Council
and Company.
k. Nothing contained herein or within this ordinance shall be
construed as limiting the right of the City to require that an
application be filed by the Company whenever the Council reasonably
determines that the Company is undertaking any change in this
ordinance which negatively affects subscriber services.
SECTION 8. TERMINATION AND TRANSFER OF FRANCHISE
8.01. TERMINATION AND FORFEITURE
a. In addition to all other rights and powers retained by
the City under the franchise, this ordinance or otherwise, the City
reserves the right to forfeit and terminate the franchise and all
rights and privileges of the Company hereunder in the event of a
substantial breach of its terms and conditions. A substantial
breach by Company shall include, but shall not be limited to the
following:
�.--7����{
23.
(1) Violation of any material provision of the fran-
chise or any material rule, order, regulation or
determination of the City made pursuant to the
franchise;
(2) Attempt to dispose of any of the facilities or
property of its cable system to prevent the City
from purchasing it, as provided for herein;
(3) Attempt to evade any material provision of the
franchise or practices any fraud or deceit upon
the City or its subscribers or customers;
(4) Failure to begin or complete system construction
or system extension as provided under the franchise;
(5) Failure to provide the types or quality of service
as required herein;
(6) Failure to restore service after ninety-six (96)
consecutive hours of interrupted service, except
when approval of such interruption is obtained from
the City;
(7) Material misrepresentation of fact in the applica-
tion for or negotiation of the franchise;
(8) Failure to replenish the fund secured by the letter
of credit within thirty (30) days after final draw
by City; and
(9) Failure to maintain bonds and/or insurance.
b. The foregoing shall not constitute a ma�or breach if the
violation occurs but it is without fault of the Company or occurs
as a result of circumstances beyond its control. Company shall
not be excused by mere economic hardship nor by misfeasance or
malfeasance of its directors, officers or empioyees.
c. The City may make a written demand by registered mail,
return receipt requested, that the Company comply with any such
provision, rule, order, or determination under or pursuant to
this franchise. Such notice shall be entitled a "Forfeiture and
. ,
�"7�8S�
24.
Termination Notice." If the violation by the Company continues
for a period of thirty (30) days following such written demand
without written proof that the corrective action has been taken
or is being actively and expeditiously pursued, the City may place
the issue of termination of the franchise before the City Council.
The City shall cause to be served upon Company, at least twenty
(20) days prior to the date of such Council meeting, a written
notice of intent to request such termination and the time and place
of the meeting. Public notice shall be given of the meeting and
issue which Council is to consider.
d. The City Council shall hear and consider the issue and
shall hear any person interested therein, and shall determine in
its discretion, whether or not any violation by the Company has
occurred.
e. 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 the Com-
pany shall be forfeited and terminate� unless there is compliance
within such period as the City Council may fix, such period not to
be less than sixty (60) days, provided no opportunity for compli-
ance need be granted for fraud or misrepresentation.
f. The issue of forfeiture and termination shall automatically
be placed 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.
g. In the event City Council terminates the franchis�, the
Company shall have the statutory period beginning the day next
following the date the Council terminates the franchise within
which to file an appeal with the Minnesota Cable Communications
Board. During such period and until the Board determines the
appeal, if an appeal is taken, the franchise shall remain in fu11
force and effect, unless the term thereof sooner expires.
8.02. FRANCHISE RENEWAL
Company may apply for renewal of the franchise no earlier than
two (2) years before the expiration date. If Company proposes new
°�� J�-��
,
� r'
25.
or improved services which do not fall within the scope of this
franchise, Company may apply at any time for a new franchise to
commence earlier than the expiration date of this franchise.
The application shall be adequate and in a form acceptable to
the City and should include the applicant' s present name, business
address, business form and proposal including types of service and
operation, technical standards, and any other proposed amendments.
If, based upon Company' s performance during the franchise
term, the proposal study and report thereon, and the public hearings,
Council finds a renewal of the franchise with Company within the
public interest, Council may enter into a renewal of the franchise
with Company under such terms and conditions and for a term of not
more than five (5) years.
8.03. RIGHT OF MUNICIPAL ACQUISITION
a. In the event the Company forfeits or upon revocation or
other termination of the franchise pursuant to provisions of this
ordinance, or at the normal expiration of the franchise term, City
shall have the right of first refusal, directly or as an intermed-
iary, to purchase the franchised cable communication system.
The value of the franchise shall be the aggregate of the
replacement value of tangible assets of the franchised cable com-
munication system. "Replacement value" shall be determined by the
unit-in-place method.
In the acceptance of a franchise, Company expressly waives its
rights, if any, to relocation costs that might otherwise be pro-
vided by law.
b. Upon exercise of this option and the payment of the above
sum by the City and its service of official notice of such action
upon Company, the Company shall immediately transfer to the City
possession and title to all facilities and property, real and per-
sonal, of the cable communication system, free from any and all
liens and encumbrances not agreed to be assumed by the City in lieu
of some portion of the purchase price set forth above; and the
Company shall execute such warranty deeds or other instruments of
conveyance to City as shall be necessary for this purpose.
�
��8��
., �
, 26.
c. In the event City and Company cannot agree upon the value
of cable communication system, either may give notice of a demand
to the other for arbitration.
Arbitration shall commence and proceed according to law and
shall be governed by Section 3.05, "Arbitration of Disputes" .
8.04. FORECLOSURE AND RECEIVERSHIP
Upon the foreclosure or other judicial sale of all or a sub-
stantial part of the cable communication system, or upon the ter-
mination of any lease covering all or a substantial part of the cable
communication system, the Company shall notify the City of such
fact, and such notification shall be treated as a notification that
a change in control of the Company has taken place, and the provi-
sions of the franchise governing the consent of the City Council to
such change in control of the Company shall apply.
The City Council shall have the right to cancel the franchise
one hundred twenty (120) days after the appointment of a receiver,
or trustee, to take over and conduct the business of the Company,
whether in receivership, reorganization, bankruptcy or other action
or proceeding, unless such receivership or trusteeship shall have
been vacated prior to the expiration of said one hundred twenty
(120) days, or unless:
a. Within one hundred twenty (120) days after his election
or appointment, such receiver or trustee shall have fully complied
with all the provisions of this ordinance and remedied all defaults
thereunder; and
b. Such receiver or trustee, within said one hundred twenty
(120) days, shall have executed an agreement, duly approved by the
court ha�ing jurisdiction in the premises, whereby such receiver
or trustee assumes and agrees to be bound by each and every pro-
vision of this ordinance and the franchise granted to the Company.
8.05. ABANDONMENT OR TRANSFER
Notwithstanding the provisions of the franchise, the Company
shall not abandon any cable communications service or any portion
thereof without having given three (3) months' prior written notice
to the City and the Minnesota Cable Communications Board. The
��7��,S�f
. :
2�.
Company shall not abandon any cable communication service or any
portions thereof without compensating the City for damages result-
ing to it from such abandonment.
a. The franchise shall not be assigned or transferred,
either in whole or in part, or leased, sublet, or mortgaged in any
manner, nor shall title thereto, either legal or equitable or any
right, interest or property therein, pass to or vest in any person
without the prior written consent of the City Council. The pro-
posed assignee must show financial responsibility as determined by
the City and must agree to comply with all provisions of the
franchise;
b. The Company shall promptly notify the City of any actual
or proposed change in, or transfer of, or �acquisition by any other
party of, control of the Company. The word "control" as used here-
in is not limited to major stockholders, general partners and lim-
ited partners, but includes actual working control in whatever
manner exercised. Every change, transfer, or acquisition of control
of the Company shall make the franchise subject to cancellation
unless and until the City shall have consented thereto, which con-
sent will not be unreasonably withheld. For the purpose of deter-
mining whether it shall consent to such change, transfer, or acqui-
sition 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;
c. 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;
d. In the absence of extraordinary circumstances, the City
will not approve any transfer or assignment of the franchise prior
to substantial completion of construction of proposed system;
e. In no event shall a transfer of ownership or control be
approved without successor in interest becoming a signatory to
the franchise agreement.
�
���8��
�r .
28.
SECTION 9. GENERAL PROVISIONS
9.01. INTERFERENCE WITH CABLE SERVICE PROHIBITED
Neither the owner of any multiple unit residential dwelling
nor his agent or representative shall interfere with the right of
any tenant or lawful resident thereof to receive cable communica-
tion service, cable installation or maintenance from a cable com-
munication company regulated by and lawfully operating under a
valid and existing cable communication franchise issued by the City
of Saint Paul.
9.02. GRATUITIES AND PAYMENTS TO PERMIT SERVICE PROHIBITED
Neither the owner of any multiple unit residential dwelling
nor his agent or representative shall ask, demand or receive any
payment, service or gratuity in any form as a condition for per-
mitting or cooperating with the installation of a cable communica-
tion service to the dwelling unit occupied by a tenant or resident
requesting service.
9.03. PENALTIES AND CHARGES TO TENANTS FOR SERVICE PROHIBITED
Neither the owner of any multiple unit residential dwelling
nor his agent or representative shall penalize, charge or sur-
charge a tenant or resident or forfeit or threaten to forfeit any
right of such tenant or resident, or discriminate in any way
against such tenant or resident who requests or receives cable
communication service from a franchisee operating under a valid
and existing cable communication franchise issued by the City of
Saint Paul.
9.04. RESELLING SERVICE PROHIBITED
,,.No person shall resell, without the expressed, written consent
of both the Company and the City, any cable service, program or
signal transmitted by a cable communication company operating under
a franchise issued by the City of Saint Paul.
9.05. THEFT OF SERVICES PROHIBITED
No person shall establish a connection to the System, con-
struct a drop for reception of services or receive cable communica-
tions services without first obtaining the approval of the Company.
WH17E - CITV CLERK .
PINK - FINANCE GITY OF SAINT PAUL Council �-Z Q
CANARV - DEP�ARTMENT File NO. ��v��
BLUE �=MN1V R
+
4 - }` Ordin�nce Ordinance N�. ' ��X-� I
Presented By
Referred To Committee: Date
Out of Committee By Date
29.
9.06. PROTECTION OF PROPERTY ,
.
Nothing in this article shall prohibit a person from requiring
that cable communications system facilities conform to laws and
regulations and reasonable conditions necessary to protect safety,
functioning, appearance and value of premises or the convenience
and safety of persons and property.
9.07. SEVERABILITY
If any section, subsection, clause, phrase, or portion of this
ordinance is for any reason held invalid or unconstitutional by any
court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and such holding sha11
not affect the vali-dity of the remaining portions there�f.
9.08. ORDINANCE PART OF LEGISLATIVE CODE
This ordinance shall be deemed a part of the Saint Paul Legis--
lative Code and shall be incorporated therein and given an appro-
priate chapter and/or section number at the time of the next
revision of said Legislative Code.
9.09. EFFECTIVE DATE �
This ordinance shall take effect and be in force thirty (30)
days from and after its passage and publication.
PASSED BY the Council of the City of Saint Paul on the � day
of � , 1980.
COUIVCILMEN �
Yeas Nays Requested by Department of:
HozZe /
"*""� �� In Favor —
Levine
Maddox
McMahon 0 Against BY
Showalter,
Tedesco
MAY 2 g 1980 Form A pr ved by City ttorney
Adopted by Council: Date
Certified P e b ouncij Se retary B
�x�
Ap d by Mayor: • 19SO Approve8 by Mayor for Submission to Council
gy By
�ifD J U N 7 1980
� �-����
� ; l/��I-f r��-�r j-_.
1 C.QCQ CQ �
CABLE COMMUNICATIONS REGULATORY ORDINANCE
TABLE OF CONTENTS
SECTION l. CABLE COMMUNICATIONS SERVICE
1.01 Statement of Legislative Findings, Intent and
Purpose
1.02 Definitions
1.03 Franchise Requirement
1.04 Requirement for Certificate of Confirmation,
MCCB Approval and Compliance with all State
and Federal Laws
1.05 Franchise: Terms and Conditions
SECTION 2. OFFICE OF CABLE COMMiJNICATIONS
2.01 Establishment
2.02 Office Functions
2.03 Cable Communications Commission
SECTION 3. ADMINISTRATION AND REGULATION
3.01 Rules and Regulations
3.02 Public Notice
3.03 Performance Evaluation Sessions
3.04 Complaints Procedure
3.05 Arbitration of Disputes
. � �� ���
2.
3.06 Penalties
3.07 Procedure upon Determination of Violation
3.08 Reports and Records
SECTION 4. RIGHTS OF INDIVIDUALS
4.01 Equal Opportunity for Service
4.02 Equal Opportunity Employment
4.03 Subscriber Privacy
4.04 Prohibit Compilation of Subscriber Lists for
Sale
4.05 Monitoring Prohibited
SECTION 5. FRANCHISE FEE
5.01 Payment
5.02 Renegotiation
SECTION 6. RATES AND RATE ADJUSTMENT
6.01 Rates Ordinance
6.02 Request for Rate Adjustment
6.03 Procedure for Rate Adjustment and Hearing
SECTION 7. APPLICATIONS PROCEDURE
Applications for Change in Ordinance or
Franchise
. �.���..�
.
3.
SECTION 8. TERMINATION AND TRANSFER OF FRANCHISE
8.01 Termination and Forfeiture
8.02 Franchise Renewal
8.03 Right of Municipal Acquisition
8.04 Foreclosure and Receivership
8.05 Abandonment
SECTION 9. GENERAL PROVISIONS
9.01 Interference with Cable Service Prohibited
9.02 Gratuities and Payment to Permit Service
Prohibited
9.03 Penalties and Charges to Tenants for Service
Prohibited
9.04 Reselling Service Prohibited
9.05 Theft of Services Prohibited
9.06 Protection of Property
9.07 Severability
9.08 Designation of Ordinance as Part of Legislative
Code
9.09 Effective Date
WMITE - CITV CLERK COIIIICII 2'74854
PINK - FINANCE
LANARV -DEAARTMEN GITY OF SAINT PAUL �
BLUE - MAVOR File NO.
i
f
� � � .- O�din�nce Ordinance N�.
Presented By
Referred To ` Committee: Date
Out of Committee�'`$y Date
�
`°An ordinance providing for administration and
regulation of cable communications franchises;
es�;ablishing requirements for franchise;
est lishing an office of cable communications;
amen 'ng the Saint Paul �Legislative Code by
adding C�hapter -
THE COUNCIL OF THE C Y OF SAINT PAUL DOES ORDAIN:
5ECTION CABLE COMMUNICATIONS SERVICE
1.01. � STATEMENT OF EGISLATIVE FINDINGS INTENT AND PURPOSE
The Council finds that the orderly regulation of cable com-
munications within the City Saint Paul will help insure the
most effective distribution o quality cable communication service
at acceptable rates to the subs ribers and reasonable return to
the system operators.
it is the purpose and intent f this ordinance to insure in-
sofar as possible the broadest sele tion of cable communication
services, including the vital commun 'ty services of news, wea�her,
emergency, government and multilingua broadcasts. Further, it is
the purpose and intent of this ordinan e to improve the quality of
home education, service and entertainme t by providing business,
religion, sports and other public servic programming, as well as
pay television.
DEFINITIONS
1.02�-, . . .
For the purpose of this ordinance and a franchise granted
subject to the conditions of this ordinance, t e following terms,
COUIVCILMEIV
Yeas Nays Requested by Department f:
In Favor
Against BY
Form Ap r ed by City Attorney
Adopted by Council: Date �
Certified Passed by Council Secretary BY �
By �
Approved by Mayor: Date Approved by Mayor for Submission to Council
By BY
�
.
y , ` ' T , ����".y�
CABLE COMMLTNICATIONS REGULATORY ORDINANCE
TABLE OF CONTENTS
SECTION 1. . CABLE COMMUNICATIONS SERVICE
1.01 S�tatement of Legislative Findings, Intent and
Purpose
1.02 Defin�itions
i.03 Franchise Requirement
1.04 Requiremen'� for Certificate of Confirmation,
MCCB Approv�l and Compliance with all State
and Federal ��ws
1.05 Franchise: Ter�is and Conditions
SECTION 2. OFFICE OF CABLE CON�IUNICATIONS
2.01 Establishment `•ti
2.02 Office Functions ,�'�.�
'�
2.03 Cable Communications Comm%�sion
�.
SECTION 3. ADMINISTRATION AND REGULATION
3.01 Rules and Regulations
3.02 Public Notice
3.03 Performance Evaluation Sessions
3.04 Complaints Procedure '4
3.05 Arbitration of Disputes
� . �����
� , , ' .
, .
2.
3.06 Penalties
3.07 Procedure upon Determination of Violation
3.08 Reports and Records
SECTION 4. RIGHTS OF INDIVIDUALS
4.01 Equal Opportunity for Service
4.02 Equal Opportunity Employment
4.03 Subscriber �.Privacy
4.04 Prohibit Compilation of Subscriber Lists for
Sale
,
4.05 Monitoring Prohibited
SECTION 5. FRANCHISE FEE
�,
5.01 Payment
5.02 Renegotiation
SECTION 6. RATES AND RATE ADJUSTMENT
6.01 Raites Ordinance
6.02 Request for Rate Adjustment
e
:�
6.03 Procedure for Rate Adjustment and l�iearing
``
SECTION 7. APPLICATIONS PROCEDURE \
Applications for Change in Ordinance or '•.
Franchise
,�
, ' . ` 2'"������
� , � �
�
3.
SEGTION 8. TERMINATION AND TRANSFER OF FRANCHISE
8.f3.� Termination and Forfeiture
8.02 � Franchise Renewal
8.03 `�,Right of Municipal Acquisition
'�,
8.04 Fo�eclosure and Receivership
8.05 Aban�nment
,,,
SECTION 9. GENERAL ��ROVISIONS
9.01 Interferenc�e with Cable Service Prohibited
9.02 Gratuities an� Payment to Permit Service
Prohibited ��.
9.03 Penalties and Ch�,,rges to Tenants for Service
Prohibited
'��
,�
,�
9.04 Reselling Service Pr'phibited
9.05 Theft of Services Proh��bited
9.06 Protection of Property
9.07 5everability
9.08 Designation of Ordinance as part of Legislative
Code
9.09 Effective Date
� � � �������
� ti �, � 2•
phrases, words, and their derivations shall have the meaning given
herein. When not inconsistent with the context, words used in the
present tense include the future, words in the plural number in-
clude the singular number, and words in the singular number in-
clude the plural number. The words "shall" and "will" are manda-
tory and "may" is permissive. Words not defined shall be given
their common and ordinary meaning.
a. "Access Channels" means those channels dedicated by law,
rule, regulation or commitment of the company to the programming
use of the general public, local government, educational institu-
tions or the leased use of comme�cial or noncommercial entities.
b. "Cable Communications Off'�cer" means that individual,
official or employee of the City cha��ged with the responsibility
of administering the terms and conditic�ns of a cable communications
franchise.
c. "Cable Communications System" shal`� mean a system of
antennas, cables, wires, lines, towers, waveguides, or other con-
ductors, converters, equipment or facilities, designed and con-
structed for the purpose of producing, receiving, transmitting,
amplifying and distributing, audio, video and other forms of elec-
tronic or electrical signals, located in the City. Said definition
shall not include any such facility that serves or will serve only
, � �������
, � , ,
3.
subscribers in one or more multiple unit dwellings under common
ownership, control or management, and does not use City rights-of-
way.
d. "City" is `�khe City of Saint Paul, a municipal corporation,
in the State of Minnesota.
e. "Interactive Channel" means a signaling path provided by a
cable communications system to transmit signals of any type from a
subscriber terminal to another point in the cable communications
system.
f. "Company" means the grantee of rights under a franchise, or
successor, transferee or assign�e.
g. "Connection" shall mean the attachment of the drop to the
first radio or television set of the subscriber.
h. "Council" shall mean the governing body of the City of
Saint Paul.
i. "Drop" shall mean the coaxial cable that connects the fa-
cility to the nearest feeder cable of the cable network.
j . "FCC" shall mean the Federal Communications Commission and
any legally appointed, designated or elected agent or successor.
k. "Franchise" shall mean the grant of rights and privileges
to construct and operate a cable communications system.
� , 2������
, . , , .
4.
l. "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, from
or in connection with the operation of the cable communication sys-
tem governed by this ord�.nance; provided, however, all revenues,
shall include but not be limitecl to, basic subscriber service monthly
fees, pay cable fees, install�tion and reconnection fees, leased
channel fees, converter rentals;,, studio rental, production equip-
ment and personnel fees, and advertising revenues; and that this
shall 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 be-
half of said governmental unit.
1.03� FRANCHISE REQUIREMENT
No person shall operate or participate in the operation of a
cable communication system within the City of Saint Paul without
first obtaining a franchise issued by the City of Saint Paul. A
cable communication system for the purposes of this section shall
not include a system that serves only subscribers in one or more
multiple unit dwellings under common ownership, control, or manage-
ment which does not use city rights-of-way.
� � ������
, � � .
5.
1.04. REQUIREMENT FOR CERTIFICATE OF CONFIRMI�TION, MCCB
APPROVAL AND COMPLIANCE WITH ALL STATE AND FEDERAL
LAWS
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 Minnesota
Cable Communications Board. Any cable communication system within
the City of Saint �Paul shall at all times comply with all required
laws and regulations of the state and federal government or any
administrative agencies thereof not later than one year after their
promulgation.
- s
1.05. FRANCHISE: TERMS AND CONDITIONS
A nonexclusive franchise may be granted by ordinance to a cable
communications company to construct and operate a system to serve
the City of Saint Paul or a designated portion thereof. The provi-
sions of this ordinance shall be incorporated by reference into the
franchise. The City and Company may agree to additional terms and
conditions as may be deemed necessary, providing that said terms
and conditions are consistent with the provisions of this ordinance
and applicable law.
No franchise shall be awarded by the City which does not re-
quire the following:
' � ' � �r���`�x�
� � �
6.
a. The designation of an access channel for general public
use;
b. The designation of an access channel for the use of non-
profit educational organizations and institutions;
c. The designation of an access channel for the use of the
City government and its agencies;
d. The designation of an access channel for lease to commer-
cial and noncommercial users;
e. The provision of staff support and technical facilities to
enable individuals, organizations and institutions to program the
respective access channels;
f. The construction and maintenance of an interactive channel
capable of nonvoice return communications; and
g. The interconnection of the cable communications system
serving Saint Paul with systems serving communities within the 'I�ain
Cities metropolitan area.
�'iF.CTION , 2. OFFICE OF CABLE COMMIJNICATIONS
2.01. ESTABLISHMENT
Within the Office of the Mayor, there shall be an office of
Cable Communications. The clirector of this office shall be appointed
by the Mayor with the consent of the Council, and shall be in the
unclassified service of the City.
� , � �������
�.
2..Q2. 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 communications offi-
cers ' duties and responsibilities shall include, but not be limited
to, the following:
a. Serve as nonvoting member of the Cable Communications Com-
mission;
b. Serve as liaison between the City, franchisee, state and
federal authorities concerned with cable communications;
c. Peceive and investigate complaints concerning the operation
of the cable communications system;
d. Assure franchisee' s compliance with all applicable ordi-
nances and laws and upon determination of any violation of same,
take all necessary and appropriate action to enforce the applicable
law;
e. Monitor the franchisee' s performance and adherence to the
terms of the franchise including, but not limited to, construction
schedule, installation policy, rates, operational standards, main-
tenance, technical standards, system design, use of public ways,
service continuity and the provision of support and facilities for
access and community programming;
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. . �,
8.
f. Receive for review and evaluation all data and reports
required of the franchisee and, where appropriate, forward such
data to interested or affected City departments; and
g. Make such recom4nendations and reports to the City Council
and Mayor as may be c�eemed necessary to the regulation and develop-
ment of the cable communications system.
2.:03. CABLE COMMUNICATIONS COMMISSION
a. There shall be established a citizens' advisory committee
�.
body entitled the Saint Paul���Citizens Cable Communications Commis-
`��
sion. The Commission shall co�'�sist of nine (9) members, appointed
by the Mayor with the approval o� the City Council, who shall serve
without renumeration. The cable cammunications officer shall serve
as a nonvoting member of the Commission. Appointments to the Com-
mission shall be made in conformity with applicable federal, state
and local laws regarding discrimination. Appointees may not be
commercially involved in cable communications activities or other
communications media;
b. Members shall serve for two (2) years. Vacancies shall be
filled by appointment by the Mayor with the approval of City
Council;
, �����/'�
U .�.�.t..��.b
9.
c. The Commission shall have the following duties and
responsibilities:
(1) Monitoring development of cable communication system,
oversee rate adjustments, test the performance of the system and
resolve consumer complaints;
(2) Preparing and submitting an annual report to the City,
the Company and the Minnesota Cable Communications Board assessing
the performance of the Company according to the terms of the
franchise;
(3) Making recommendations to the City regarding the apparent
or likely need for upgrading the cable communication system to meet
the current state of-the-art;
(4) Preparing and submitting to the City, the Company and the
Minnesota Cable Communications Board three (3) months prior to the
expiration of this franchise and three (3) months prior to the ex-
piration of the Certificate of Confirmation,' a report which shall
include a written appraisal of the performance of the franchise over
the entire length of the franchise with regard to the provisions of
this franchise. The report shall also include reCommendations for
revised or additional provisions of the franchise, considering at
least the following items: channel capacity, channels for access
cable casting, two-way capability and the need for further service
� � � � ��������
� ��
�o.
to be extended within the franchised area based upon a reassessment
of the commur�ication needs of the City in relation to the services
generally offered by the cable industry.
d. Such other duties as the Mayor or City Council may specify.
e. The Commission shall meet no less than twice annually or
at the call of the Cha�.rman. All meetings of the Commission shall
be open to the public.
SECTION 3. ADMIL�TISTRATION AND REGULATION
3.01. RULES AND REGULATIt'�NS
a. In addition to the inherent powers of the City to regulate
and control the franchise, and those powers expressly reserved by
the City, or agreed to and provided for herein and within the fran-
chise, the right and power is hereby re�erved by the City to promul-
gate such additional reasonable regulations as it shall find necessary
in the exercise of its lawful powers and in`,furtherance of the terms
and conditions of this ordinance and the franchise.
b. The City may also adopt such regulatioi�s at the request of
Company upon application to the City.
c. Any rules or regulations adopted pursuant to this section
shall be published at Company' s expense and be readily available to
subscribers.
� . �, � � �������
.
��.
d. The City reserves the right to determine how the access
channels will be administered.
3.02. P'UBLIC NOTICE
M�nimum public notice of any City public meeting relating to
this franchise shall be by publication at least once in a local
newspaper of general circulation at least ten (10) days prior to
the meeting, posting at City Hall and commencing on the tenth day
prior to the meeting, Company shall notify its subscribers of the
meeting by announcement on at least two (2) channels of its cable
communication system between the hours of 7:00 p.m. and 9:00 p.m. ,
for five (5) consecutive days. Such announcement shall be made on
the two channels of highest use on which such announcement is
feasible.
3.03. PERFORNIANCE EVALUATION SESSIONS
a. The City Council may require cable communication system
performance evaluation sessions within thirty (30) days of the
third, fifth and tenth anniversary dates of tl�e Company' s award of
the franchise and as required by federal and state law. All such
evaluation sessions shall be open to the public.
b. Special evaluation sessions may be held at any time during
the term of the franchise at the request of the Council or the
Company.
� `��.''� �;�.`t'''B,�j' !�
12.
c. All evaluation sessions shall be open to the public. No-
tice of all evaluation sessions shall be given in accordance with
the procedure set aut in Section 3.02.
d. Topics whicli•. may be discussed at any scheduled or special
evaluation session may '�nclude, but not be limited to, service rate
structures; franchise fee;. penalties; free or discounted services;
application of new technologies; system performance; services pro-
vided; programming offered; customer complaints; privacy; amendments
to this ordinance; judicial and �CC rulings; line extension policies;
and Company or City rules.
e. Members of the general publi:c may add topics by working
through the City or Company.
f. During a review and evaluation by City, Company shall fully
cooperate with City and shall provide such information and documents
as City may request to reasonably perform the review.
g. If at any time during its review, the City Council deter-
mines that reasonable evidence exists of inadequate cable communi-
cation system performance, it may require Company to perform tests
and analyses directed toward such suspected inadequacies at the
Company' s own expense. Company shall fully cooperate with City in
� ���:����
13.
performing such testing and shall prepare results and a report, if
requested, with�n thirty (30) days after notice. Such report shall
include the following information:
(1) The nature of the complaint or problem which precip-
itated the special tests.
(2) What system component was tested.
(3) The equipment used and procedures employed in testing.
(4) The method, if any, in which such complaint or problem
was resolved.
(5) Any other information pertinent to said tests and
analysis which may be required.
The Council may require that tests be supervised, at Company' s
expense, by a professional engineer, not on the permanent staff of
the Company. The engineer shall sign all records of special tests
and forward to the City such records with a report interpreting the
results of the tests and recommending actions to be taken.
h. Tests required pursuant to Section 3.03 shall only be per-
formed in response to specific complaints or problems that give the
City reason to believe that such tests are necessary to protect the
public against substandard cable service.
� . ��''�� �
� $�f� ��
14.
�-94. �OMPLAINTS PROCEDURE
-- �
a. Durin��the term of the franchise, and any renewal there-
,.
�
of, the Company s�all maintain within the City a local business
.
office or offices fo� the purpose of receiving and resolving all
complaints regarding tY� quality of service, equipment malfunctions,
.
.�
�
billings disputes, and s 'i3�iilar matters. The office must be reach-
able by a local, toll-free �.�lephone call, and provide the City with
1
S
the name, address and telephon'e number of a person who will act as
'',
the Company' s agent to receive ct�mplaints regarding quality of
service, equipment malfunctions, b�llings and similar matters. The
local office shall be open to receive inquiries or complaints from
subscribers during normal business hours, and in no event less than
9:00 a.m. to 5 :00 p.m. , Monday through Friday, excluding legal
holidays. Company shall provide the means to accept complaint
calls twenty-four (24) hours a day, seven days a week. Inquiries
and complaint calls shall be accepted in person between 8:00 a.m.
and 10:00 p.m. , seven days a week. Any service complaints from
� � 2�����
15.
subscribers shall be investigated and acted upon within twenty-four
(24) hours. Any service complaint shall be resolved within three
(3) calendar days. Upon notification by a subscriber, the Company
shall credit a subscriber' s account on a prorata basis for loss of
service exceeding forty-eight (48) hours within a thirty (30) day
period. The Company shall keep a maintenance service log which
will indicate the nature of each service complaint, the date and
time it was received, the disposition of said complaint and the time
and date thereof. This log shall be made available for periodic
inspection by City.
b. As subscribers are connected or reconnected to the system,
the Company shall, by appropriate means, such as a card or brochure,
furnish information concerning the procedures for making inquiries
or complaints, including the name, address and local telephone num-
ber of the employee or employees or agent to whom such inqu�ries
or complaints are to be addressed, and furnish information concern-
ing the City office responsible for administration of the franchise
with the address and telephone number of the office.
3.05. ARBITRATION OF DISPUTES
a. In the event City and Company cannot reso��ve a dispute
which arises as a result of the construction, operatson or manage-
ment of the cable communication system and which is not governed
by Section 3.06, either party may give notice of a demand
, �d�� �:��1+``:�
� . 5 ' ,
16.
to the oth�r for arbitration;
b. Arbitration shall commence and proceed according to law
except as follo�nrs :
(1) The part�.es shall, within fifteen (15) days, appoint one
arb itrator each who '�,s experienced in cable communications and not
employed by or in any manner affiliated with either City or Company.
Arbitrators shall each ag�ee upon the selection of a third arbi-
trator, similarly qualified, within fifteen (15) days;
(2) Within thirty (30) days after appointment of all arbi-
trators and upon ten (10) days' written notice to parties, the board
of arbitrators shall commence a hearing on the matter in dispute;
(3) The hearing shall be recorded and may be transcribed at the
request of either party. Al1 hearing proceedings, de�xate and delib-
erations shall be open to the public and at such times and places
as contained in the notice or as thereafter publicly stated in the
order to adjourn, except as otherwise authorized by the City
Attorney; •
(4) At the close of the hearings and within thirty (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
� , � 2'������
�.,.
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. Supplemental evidence may be taken
at the request of the 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) Either party may seek judicial relief in the following
circumstances:
(a) A party fails to select an arbitrator;
(b) the arbitrators fail to select a third arbitrator;
(c) one or more arbitrator is u�qualified;
(d) designated time limits have }�,een exceeded;
(e) the board has not proceeded expeditiously; and
(f) 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 or suit to be awarded to the prevailing party;
(8) 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
, ��►a l� ���
ti .�1.�.�*V,�' ."u
10•
apportioned so that less or none of the costs may be borne by one
party.
3.06. PENALTIES
The franchise shall provide for the deposit of a letter of
credit to insure faithful performance by the Company. For the
violation of any of the following provisions of the franchise, pen-
alties shall be chargeable to the letter of credit and the Company
as follows :
a. For failure to co�plete system construction in accordance
with the construction plan pxovided in the franchise unless the City
Council specifically approves t�e delay by motion or resolution, due
to the occurrence of conditions b'�eyond Company' s control, Company
shall pay Two Hundred Dollars ($200�.00) per day for each day, or part
thereof, the deficiency continues.
b. For failure to provide data, d�.cuments, reports, informa-
tion or to cooperate with City during an application process or
cable communication system review, Company shall pay Fifty Dollars
($50.00) per day for each day, or part thereof, the violation occurs
or continues.
c. For failure to test, analyze and report on the performance
of the system following a request pursuant to the franchise, the
Company shall pay to the City, Fifty Dollars ($50.00) per day for
each day, or part thereof, that such noncompliance continues.
. , ��'�����
, ' 19.
d. Forty-five (45) days following adoption of a resolution of
Council determining a failure of Company to comply with construction,
operational, maintenance standards, or the offering, Company shall
pay to the City Two Hundred Dollars ($200.00) per day for each day,
or part thereof, that such noncompliance continues.
e. For initiating or using a procedure or device for procuring
information or data from a subscriber' s terminal, dwelling or busi-
ness without the prior valid authorization of the affected subscrib-
er as required by Section 4.03, "Subscriber Privacy", the Company
shall pay Fifty Dollars ($50.00) per day for each day, or part
thereof, the violation continues or occurs.
f. For selling, providing or otherwise making available to any-
one any information about subscribers obtained by monitoring trans-
mission of any type of signal from a subscriber' s terminal, dwelling
or place of business without the specific written authorization of
the subscriber as required by Section 4.04, "Prohibit Compilation
of Subscriber Lists for Sale", the Company shall pay Five Thousand
Dollars ($5,000.00) for each such violation. In addition, the total
amount of funds paid the Company for this information shall be for-
feited to the City by Company.
g. For tapping, monitoring or for arranging to tap or monitor
any cable, line, signal, input device or subscriber outlet or re-
ceiver for any purpose whatsoever without the specific written
authorization of the subscriber or pursuant to court order, the
S� � .
� , ��� ��:�
� , �
2�.
Company shall pay Ten Thousand Dollars ($10,000.00) per day for
each day, or part thereof, the violation occurs or continues.
h. Each violation of each provision shall be considered a
separate violation for which a separate penalty can be imposed.
i. Exclusive of the penalties set out above in this section,
a violation of any provision of this ordinance is by Saint Paul
Legislative Code deemed to be a misdemeanor.
j . The rights reserved by the City herein are in addition to
all other rights and remedies the City may have under this franchise
or any other law and are not intended to be exclusive.
3.07. PROCEDURE UPON DETERMINATION OF VIOLATION
a. Whenever the Cable Con�munications Officer shall find that
the Company has violated one or m�re of the terms, conditions, or
provisions of Section 3.06, a written notice shall be sent to the
Company by registered mail, return re�eipt requested, informing them
of such violation or violations. Sucha�otice shall be entitled a
`,�
�
,
"Violation Notice". The Company may rem�dy violations of subdivi-
��
sions a through d of Section 3.06 within t�,ree (3) days of tender
`�,
of the registered letter bearing the "Violat'�on Notice" . If the
Company fails to remedy the violation within t�iree (3) days after
,
tender of the registered letter, penalties shall'. be assessed in
accordance with the provisions in Section 3.06.
� . �����
� 21.
Violation of Section 3.06, subdivisions e through g shall
not be subject to remedy and shall be assessed from the first date
of occurrence.
b. Whenever a penalty has been assessed, the Company may,
within ten (10) days of the tender of written notice as provided for
in Section 3.07 (a) , notify the Cable Communications Officer by reg-
istered mail that there is a dispute as to whether or not a violation
has, in fact, occurred. Such notice shall specify with particularity
the matters disput�d by the Company.
The Cable Communications Officer shall, upon receipt of the
Company' s letter, cause the matter to be referred to the City Council
for a hearing. A hearing shall be held within thirty (30) days of
receipt of the Company' s letter by a committee designated by the
Council to determine if there is reason �o believe the Company has
committed a violation of Section 3.06. After the hearing, the
Council shall determine if there is reason to believe the Company
has committed a violation of Section 3.06, and shall make written
findings of fact relative to their determination..
c. Upon a determination by the Council that there is reason
to believe a violation has taken place, or in the event the Company
chooses not to dispute the finding of the Cable Communications
Officer, the City Director of Finance and Management Services shall
. , � , � � �`���}�'�
22.
immediately make withdrawals against the letter of credit provided
for in the franchise ordinance in accordance with the penalties
specified for such violations in Section 3.06, and shall continue
to make withdrawals until the Company has satisfactorily remedied
the term, condition, or provision violated.
3.08. REPORTS AND RECORDS
Company shall fully cooperate in making available at reasonable
times, and the City shall have the right to inspect the books,
records, maps, plans and other like materials of the Company appli-
cable to the Saint Paul System, at any time during normal business
hours; provided where volume and convenience necessitate, Company
may require inspection to take place on Company premises.
SECTION 4. RIGHTS OF INDIVIDUALS
4.01. EQUAL OPPORTUNITY FOR SERVICE
Company shall not deny service, deny access, or otherwise dis-
criminate against subscribers, channel users, or general citizens
on the basis of race, color, creed, religion, ancestry, national
origin, sex, affectional preference, disability, age, marital
status, or status with regard to public assistance. Company shall
comply at all times with all other requirements of federal, state
and local laws and regulations, and all executive and administrative
orders relating to nondiscrimination which are hereby incorporated
`�¢�������
23.
and made a part of this ordinance by reference.
4.02. EQUAL OPPORTUNITY EMPLOYMENT
�
Company shall �trictly adhere to the equal employment opportun-
ity requirements of the federal government as well as state and local
laws and regulations.
4.03. SUBSCRIBER PRI�I�F.CY
No signals, including signals of an Interactive Communications
channel, shall be transmitted from a subscriber terminal except as
required to provide a .service authorized by ordinance or the sub-
scriber. The Company, the City and �any other person shall neither
initiate nor use any procedure or deviee for procuring information
or data from a subscriber' s terminals or terminal by any means,
without the prior valid authorization of tlie affected subscriber.
Valid authorization shall mean written approval from the subscriber
which shall not have been obtained from the subscriber as a condi-
tion of service and which may be revoked by the subscriber at any
time. The request for such permission shall be contained in a
� � � �������
24.
separate document with a prominent statement that the subscriber
is authorizing the permission with full knowledge of its provisions.
After the first year of authorization and cluring the month of the
year of the authorization' s initial signing, the Company shall, for
each year said authoriaation is in effect without revocation, mail
a notice to each authorizing subscriber informing him or her of
their right to revoke said authorization for transmission from their
terminal. The authorization shall be revocable at any time by the
subscriber without penalty of an�r kind whatsoever. Such authoriza-
tion shall be required for each type or classification of signals
transmitted from a subscriber termirial.
4..�04� PROHIBIT COMPILATION OF SU'BSCRIBER LISTS FOR SALE
The Company, the City, or any of their agents or employees,
shall not, without the specific written authorization of the af-
fected subscriber, provide data identifying' or designating any sub-
scriber. Any data authorized shall be made available upon request to
the authorizing subscriber in understandable fashion, including speci-
fication of the purpose for which the information is being gathered
and to whom and for what fee the information is to be sold.
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•sa��� um�ix�� �o� aTnpaq�s � ano�dd� os1� ZZEus ��z� aus •asiu�u���
suoi���iuntuiuo� aZq�� � �o� Z�sodozd s ��uQ�ildd� Zn�ssa��ns au� u�TM
a�u�pzo��e ui sa��� a�u�uipzo Aq �as �Tj2T�TUT jT�us ��i� aus
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o� ��aCc{ns aq TT�us T uoi�.�ag uz u�..zo� �as aa� as-ru�u�.z,� aus
-NOZS�rzso���x •zo•s
•sa�in.zag �uauiab�u�ys pu�
a�u�u-r3 �o �uaui�a�daQ ��-r� au� o� ap�ui aq 11�us pu� u�.uouz bu-rMOTZo�
au� �o �Ep �s�T au� a.zo�aq .zo uo anp aq ZT�us u��a .zo� �uaur��d �.uaui
-TZ��sui auy •s-r sEq �TU�uoux � uo ap�ui aq ZT�qs s�uaur��a •sanuana.z
sso.zb �o (/,c) �ua�.zad ani,� �o aa,� as-ru�u�.z� � �Ed ZT�us �iu�diuo�
ZN�FId 'T0'S
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•zaqi.z�sqns pa�.�a��� au� �o uo-r��z-r.zou�n� pzj�n .zoz.zd au�
�nou�.in� '.zanaos��un� asod.znd �u� .zo� .zanza�a.z .zo �aT�.no .zaqi.z�sqns .zo
'a�-rnap �.nduz 'T�ubis 'auiT �a1qE� �u� �.zo�zuoui ao d�� o�. uoszad
.zaq�o �u� �.zui.zad zo 'bui.zo�-ruoui .zo bu-rdd�� aq�. ao� abu�.z.z� '.zo�zuoui
ao d��. �ou ZT�us s�uab� a-rau� �o �u� ao ���i� au� ��u�duzo� auy
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26.
completes construction. The procedure to change subscriber rates
shall be in accordance with Section 6.03 of this ordinance, and
increases in rate� shall be based upon the concept of fair and rea-
sonable rates to both Company and subscribers which in the aggregate
meet all applicable co�ts of service provided by Company including
fair return on invested capital, assuming efficient and economical
management. Residential subscriber contracts, if any, may not ex-
ceed twelve (12) months unless after twelve (12) months the contract
may be terminated without penalty at the option of the subscriber.
6.02. REQUEST FOR RATE ADJUSTMENT
Company may make application for a revision of the rate sched-
ule at any time after the Company has completed construction. In
any event, there shall be no rate increase of more than ten percent
(10/) from the initial rates during the two years following comple-
tion of construction.
6.03. PROCEDURE 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 7.
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 ta enable the
Company to render service to fulfill its obligations
J � ' ' �
�����
1 ' 2/ •
under this ordinance and to derive a reasonable profit therefrom.
The application shall also include a statement of facts, op�.nions,
substantiating documents and exhibits supporting the change requested.
The Company' � 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
(5) Statement of current and projected subscribers and
penetration.
The Company shall answer all City requests for information.
The Company' s accounting records applicable to the cable system
shall be available for inspection by the City at all reasonable times.
The City shall have access to records of financial transactions for
the purpose of verifying burden rates or other indirect costs pro-
rated to the Saint Paul operation. The documents listed above shall
include sufficient detail and/or footnotes as may be necessary to
provide the City with the information needed to make accurate de-
terminations as to the financial condition of the system. All fi-
nancial statements shall be certified as accurate by an officer of
' . � "}�::,��r
�r
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28 .
the Company. The Company shall bear the burden of demonstrating the
correctness of the costs.
The Council shall consider the following factors in approving
or disapproving the application:
(1) the ability of the Company to render System services
and to derive a reasonable profit therefrom under
the existing rate schedule and under the proposed
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 the Company;
(5) the original cost of the System less depreciation;
(6) a fair rate of return with respect to the cost or
borrowing and the rates of return on investments
having similar risks to that of community antenna
television;
(7) the extent to which the Company has adhered to the
terms of this agreement;
(8) fairness to City residents, subscriber and users;
(9) capital expenditures by the Company in providing up-
dated technology and service to subscribers; and
(10) such other factors as Council may deem relevan,z.
The Council will not consider any valuation based upon this
franchise right or the Company' s goodwill. Neither the value of
the franchise nor the value of the Company' s goodwill shall be
, , , . �����'�'`'�
. ,
29.
'•,.
amortized as an expense nor shall a return be paid on them. Further-
more, the Council will not consider any rate increase application
based, in whole or part, on increased cable communications 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 thirty (30) days within which to deter-
mine 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 7 of this ordinance. In the event that the Council
takes no action within thirty (30) days, said rates shall become
effective.
Changes in rates taking place with or without Council action
shall supersede the rates set out in this ordinance after their
effective date. The City Clerk shall prominently post a detailed
listing of current rates.
Nothing herein or within this ordinance shall limit the auth-
ority of the City ro regulate any rate when such regulation is not
specifically prohibited or preempted by federal or state law or
regulation.
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30.
SECTION 7. APPLICATIONS PROCEDURE
7.01. APPLICATIONS FOR CHANGE IN ORDINANCE OR FRANCHISE
Except as otherwise specifically provided for herein, following
the adoption and acceptance of the franchise, all applications by •
the Company effectuating a change in this ordinance or the franchise
including, but not limited to, changes in rates, services, program-
ming of activated and non-activated channels, construction schedules,
transfer of ownership, proposed changes in regulations or ordinances,
importation of distant broadcast signals, etc. , and as otherwise
authorized by or made pursuant to the franchise, shall be made and
processed by giving notice to the City in accordance with the follow-
ing procedure:
a. Applications shall be in a form prescribed by the City and
shall contain sufficient facts and information acceptable to the
City.
b. An application may be rejected for inadequacy by City if
it contains an inadequate description of what is being applied for,
is not in an acceptable form, or contains insufficient facts and
information for adequate consideration.
c. A rejection of an application for inadequacy shall be in
writing by notice which shall state the deficiencies. The notice
shall not be construed to limit rejection for further and different
deficiencies on subsequent applications.
: .
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31.
d. Upon acceptance, City staff shall review the application.
The staff may submit the application to Council if it deems the
application adequate and complete and in need of no further staff
study or report. The City shall give notice to Company within thirty
(30) days of acceptance if it will study the application prior to
submission to Council. The study shall be completed within forty-
five (45) days after notice is given to the Company by the City unless
such period is extended for up to an additional forty-five (45) days
by motion of Council or a longer period of time by agreement with
Company.
At the conclusion of the study, City staff may submit the ap-
plication, study and other information, documents and exhibits to the
Council for consideration.
At the expiration of the study period, if the matter has not
been placed upon the Council agenda, Company may notify the City
Clerk in writing to place the application upon the Council agenda
for the next regular meeting, and the City Clerk shall do so.
e. During the study period, Company shall fully cooperate with
City in providing information and documents which are related to
and reasonably necessary in the proper evaluation of the application.
Failure of Company to so cooperate or Company' s unreasonable delay
in providing information and documents shall be grounds for a
.
., .
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32.
reasonable extension by Council •of the study period or, if either
the lac, of cooperation or the delay substantially impairs the study,
Council may summarily deny the application.
f. Upon submission to Council, it shall review the application
and any studies, information and documents which accompany it.
Council shall approve or deny the applications based on the record
within thirty (30) days, unless a public hearing is set. If Council
desires a public hearing, or if one is required, Council shall set a
public hearing within thirty (30) days. Notice of the public hear-
ing shall be given in accordance with Section 3.02.
g. At a public hearing pursuant to this application process,
Council may hear reports from staff, Cable Communications Commission
consultants, and the public. Council shall provide a reasonable but
not unlimited opportunity for rebuttal. Council may impose reason-
able time limitations on verbal presentations which may be selec-
tively waived to facilitate adequate evaluation of the application.
h. If, at the hearing, Council determines that additional
information or documents are necessary to adequately evaluate the
application, it may continue the hearing from time to time pending
augmentation of the record. A continuance shall not exceed fifteen
(15) days at a time.
i. At the close of the hearing Council shall, within thirty
(30) days, approve, deny or modify the application. Notice of denial
. ' � � �'�������
33.
and the grounds therefor may be in writing if requested. Reasonable
conditions in furtherance of the purpose and intent of the franchise
may be attached by Council to an approval or modification and may
be acted upon by Company upon acceptance in writing by Company.
j . Any time limit may be waived by consent of both Council and
Company.
k. Nothing contained herein or within this ordinance shall be
construed as limiting the right of the City ro require that an ap-
plication be filed by the Company whenever the Council reasonably
determines that the Company is undertaking any change in this ordi-
nance which negatively affects subscriber services.
SECTION 8. TERMINATION AND TRANSFER OF FRANCHISE
8.01. TERMINATION AND FORFEITURE
a. In addition to all other rights and powers retained by the
City under the franchise, this ordinance or otherwise, the City
reserves the right to forfeit and terminate the franchise and all
rights and privileges of the Company hereunder in the event of a
substantial breach of its terms and conditions. A substantial breach
by Company shall include, but shall not be limited to the following:
(1) Violation of any material provision of the franchise
or any material rule, order, regulation or determin-
ation of the City made pursuant to the franchise;
, !
; , : . ������
34.
`
(2) Attempt to dispose of any of the facilities or
property of its CATV system to prevent the City from
purchasing it, as provided for herein;
(3) Attempt to evade any material provision of the fran-
chise or practices any fraud or deceit upon the City
or its subscribers or customers;
(4) Failure to begin or complete system construction or
system extension as provided under the franchise.
(5) Failure to provide the types or quality of service
promised herein;
(6) Failure to restore service after ninety-six (96)
consecutive hours of interrupted service, except
when approval of such interruption is obtained from
the City;
(7) Material misrepresentation of fact in the application
for or negotiation of the franchise;
(8) Failure to replenish the fund secured by the letter of
credit; and
(9) Failure to maintain bonds and/or insurance.
b. The foregoing shall not constitute a major breach if the
violation occurs but it is without fault of the Company or occurs
as a result of circumstances beyond its control. Company shall not
be excused by mere economic hardship nor by misfeasance or malfeas-
ance of its directors, officers or employees.
c. The City may make a written demand by registered mail,
return receipt requested, that the Company comply with any such
. � ; � � 2�����
35 .
provision, rule, order, or determination under or pursuant to this
franchise. Such notice shall be entitled a "Forfeiture and Termina-
tion Notice. " If the violation by the Company continues for a
period of thirty (30) days following such written demand without
written proof that the corrective action has been taken or is being
actively and expeditiously pursued, the City may place the issue of
termination of the franchise before the City Council. The City
shall cause to be served upon Company, at least twenty (20) days
prior to the date of such Council meeting, a written notice of intent
to request such termination and the time and place of the meeting.
Public notice shall be given af the meeting and issue which Council
is to consider.
d. The City Council shall hear and consider the issue and shall
hear any person interested therein, and shall determine in its dis-
cretion, whether or not any violation by the Company has occurred.
e. 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 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 sixty (60) days, provided no opportunity for compliance need
be granted for fraud or misrepresentation.
. . �.'°,'��,�'�;�
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36.
\
��
f.'� The issue of forfeiture and termination shall automatically
��
�
be placed��,,upon the City Council agenda at the expiration of the time
set by it far compliance. The Council then may terminate the fran-
chise forthwitl� upon finding that Company has failed to achieve com-
pliance or may further extend the period, in its discretion.
g. In the event City Council terminates the franchise, the
Company shall have a period of thirty (30) days beginning the day next
following the date the Council terminates the franchise within which
to file an appeal with the Minnesota Cable Communications Board
pursuant to Minnesota Statutes Section 238.12 (1976) . During such
thirty (30) day period and until the Board determines the appeal,
if an appeal is taken, the franchise shall remain in full force and
effect, unless the term thereof sooner expires.
8.02. FRANCHISE RENEWAL
Company may apply for renewal of the £ranchise no earlier than
two (2) years before the expiration date. If Company proposes new
or improved services which do not fall within t�e scope of this
`,,
�
franchise, Company may apply at any time for a n2�w franchise to com-
mence earlier than the expiration date of this frai�chise.
The application shall be adequate and in a form acceptable to
the City and should include the applicant' s present name, business
.
address, business form and proposal including types of service and
� ' � � �������
37.
operation, technical standards, and any other proposed amendments.
If, based upon Company' s performance during this franchise term,
the proposal study and report thereon, and the public hearings,
Council finds a renewal of the franchise with Company within the
public interest, Council may enter into a renewal of the franchise
with Company under such terms and conditions and for a term of not
more than five (5) years.
8.03. RIGHT OF MUNICIPAL ACQUISITION
a. In the event the Company forfeits or upon revocation or
other termination of the franchise pursuant to provisions of this
ordinance, or at the normal expiration of the franchise term, City
shall have the right of first refusal, directly or as an intermed-
iary, to purchase the f:ranchised cable communication system.
The value of the franchise shall be the aggregate of the re-
placement value of tangible assets of the franchised cable commun-
ication system. "Replacement value" shall be determined by the unit-
in-place method.
In the acceptance of a franchise, Company expressly waives its
rights, if any, to relocation costs that might otherwise be provided
by law.
�
b. Upon exercise of this option and the payme.nt of the above
sum by the City and its service of official notice of such action
,
. . �"�� ��a�
� „ , � d �. � �
r �
38.
upon Company, the Company shall immediately transfer to the City
possession and title to all facilities and property, real and per-
sonal, of the cable communication system, free from any and all liens
and encumbrances not agreed to be assumed by the City in lieu of
some portion of the purchase price set forth above; and the Company
shall execute such warranty deeds or other instruments of conveyance
to City as shall be necessary for this purpose.
c. In the event City and Company cannot agree upon the value
of cable communication system, either may give notice of a demand to
the other for arbitration.
Arbitration shall commence and proceed according to law and shall
be governed by Section 3.05, "Arbitration of Disputes".
8_.04. FORECLOSURE AND RECEIVERSHIP
Upon the foreclosure or other judicial sale of all or a substan-
tial part of the cable communication system, or upon the termination
of any lease covering all or a substantial part of the cable commun-
ication system, the Company_ shall notify the City of such fact, and
,
such notification shall be treated as a notification that a change
in control of the Company has taken place, and the provisions of
this franchise governing the consent of the City Council to such
change in control of the Company shall apply.
, . �
t . '` ' ' w `�c�.�'t� �
39.
The City Council shall have the right to cancel this franchise
one hundred twenty (120) days after the appointment of a receiver,
or trustee, to take over and conduct the business of the Company,
whether in receivership, reorganization, bankruptcy or other action
or proceeding, unless such receivership or trusteeship shall have
been vacated prior to the expiration of said one hundred twenty
(120) days, or unless :
a. Within one hundred twenty (120) days after his election or
appointment, such receiver or trustee shall have fully complied with
all the provisions of this ordinance and remedied all defaults
thereunder; and
b. Such receiver or trustee, within said one hundred twenty
(120) days, shall have executed an agreement, duly approved by the
court having jurisdiction in the premises, whereby such receiver or
trustee assumes and agrees to be bound by �ach and every provision
of this ordinance and the franchise granted to the Company.
8.05. ABANDONMENT OR TRANSFER
Notwithstanding the provisions of the franchise, the Company
shall not abandon any cable communications service vr any portion
thereof without having given three (3) months prior written notice
to the City and the Minnesota Cable Communications Boar�1. The Com-
pany shall not abandon any cable communication service or �ny
r ���'���
� � �y �
4�9.
portions thereof without compensating the City for damages result-
ing to it from such abandonment.
a. The franchise shall not be assigned or transferred, either
in whole or in part, or leased, sublet, or mortgaged in any manner,
nor shall title thereto, either legal or equitable or any right,
interest or property therein, pass to or vest in any person without
the prior written consent of the City Council. The proposed assign-
ee must show financial responsibility as determined by the City and
must agree to comply with all provisions of the franchise;
b. The Company shall promptly notify the City of any actual
, or proposed change in, or transfer of, or acquisition by any other
party of, control of the Company. The word "control" as used herein
is not limited to major stockholders, general partners and limited
partners, but includes actual working control in whatever manner
exercised. Every change, transfer, or acquisition of control of
the Company shall make the franchise subject to cancellation unless
and until the 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; �'�
��
� ' ������
; � �: .
4 f�.
portions thereof without compensating the City for damages result-
ing to it from such abandonment.
a. The franchise shall not be assigned or transferred, either
in whole or in part, or leased, sublet, or mortgaged in any manner,
nor shall title thereto, either legal or equitable or any right,
interest or property therein, pass to or vest in any person without
the prior written consent of the City Council. The proposed assign-
ee must show financial responsibility as determined by the City and
must agree to comply with all provisions of the franchise;
b. The Company shall promptly notify the City of any actual
, or proposed change in, or transfer of, or acquisition by any other
party of, control of the Company. The word "control" as used herein
is not limited to major stockholders, general partners and limited
partners, but includes actual working control in whatever manner
exercised. Every change, transfer, or acquisition of control of
the Company shall make the franchise subject to cancellation unless
�
and until the 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; t�,
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. c�"��.��'�
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.
41.
c. 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;
d. In the absence of extraordinary circumstances, the City
will not approve any transfer or assignment of the franchise prior
to substantial completion of construction of proposed system;
e. In no event shall a transfer of ownership or control be
approved without successor in interest becoming a signatory to the
franchise agreement.
SECTION 9. GENERAL PROVISIONS
9.01. INTERFERENCE WITH CABLE SERVICE PROHIBITED
Neither the owner of any multiple unit residential dwelling nor
his agent or representative shall interfere with the right of any
tenant or lawful resident thereof to receive cable communication
service, cable installation or maintenance from a cable communica-
tion company regulated by and lawfully operating under a valid and
existing cable communication franchise issued by the City of Saint
Paul.
9.02. GRATUITIES AND PAYMENTS TO PERMIT SERVICE PROHIBITED
Neither the owner of any multiple unit residential dwelling nor
his agent or representative shall ask, demand or receive any payment,
� '' , . �����
.
. �
,�
.
42.
\
,\
service�, or gratuity in any form as a condition for permitting or
cooperating with the installation of a cable communication service
to the dwelling unit occupied by a tenant or resident requesting
service.
9.03. PENALTIES AND CHARGES TO TENANTS FOR SERVICE PROHIBITED
Neither the owner of any multiple unit residential dwelling
nor his agent or representative shall penalize, charge or surcharge
a tenant or resident or forfeit or threaten to forfeit any right of
such tenant or resident, or discriminate in any way against such ten-
ant or resident who requests or receives cable communication service
from a franchisee operating under a valid and existing cable commun-
ication franchise issued by the City of Saint Paul.
9.04. RESELLING SERVICE PROHIBITED
No person shall resell, without the expressed, written consent
of both the Company and the City, any cable service, program or
signal transmitted by a cable communication company operating under
a franchise issued by the City of Saint Paul.
9.05. THEFT OF SERVICES PROHIBITED
No person shall establish a connection to the System, construct
a drop for reception of services or receive cable communications
services without first obtaining the approval of the Co�pany.
wX ���;�
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' � � � �l �„C.�"�.J6 .4
43.
9.06. PROTECTION OF PROPERTY
Nothing in this article shall prohibit a person from requiring
that cable communications system facilities conform to laws and
regulations and reasonable conditions necessary to protect safety,
functioning, appearance and value of premises or the convenience and
safety of persons and property.
9.07. 5EVERABILITY
If any section, subsection, clause, phrase, or portion of this
ordinance is for any reason held invalid or unconstitutional by any
court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and such holding shall
not affect the validity of the remaining portions thereof.
9.08. ORDINANCE PART OF LEGISLATIVE CODE
This ordinance shall be deemed a part of the Saint Paul Legis-
lative Code and shall be incorporated therein and given an appropriate
chapter and/or section number at the time of the next revision of
said Legislative Code.
WHITE - CITY CLERK �� ����
PINK - FINANCE GITY OF SAINT PALTL Council A�
CANARV - DEPARTMENT
BLUE - MAVOR File NO.
`.�t � , � Ordin�nce Ordinance N 0.
Presented By
Referred To Committee: Date
Out of Committee By Date '
44.
9.09. EFFECTIVE DATE
This ordinance shall take effect and be in force thirty (30)
days from and after its passage and publication.
�
P�zssed by the Council of the City of Saint Paul on the �„
day of , 1980.
COUNCILMEN Requested by Department of:
Yeas Nays �
In Favor
Against By
Form App ed by City ttorne
Adopted by Council: Date ��
Certified Passed by Council Secretary BY , �
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
gy By
WH17E - CITV CLERK •
PINK - F,INANCE ' t � /��/�
CANqRV - LIEPARTM�NT GITY OF SAINT PAUL CO1111C11 ���`��
BLUE - MAVOR . File NO. � �
t � � Ordindnce Ordinance N0.
Prese�ed By
Referred To Committee: Date
Out of Committee By Date
. An ordinance providing for administration and
regulation of cable communications franchises;
establishing requirements for franchise;
establishing an office of cable communications;
amending the Saint Paul Legislatiue Code by
adding Chapter .
THE COUNCIL OF THE CITY OF SAINT PAUL DOE5 ORDAIN:
SECTION l. CABLE COMMUNICATIONS SERVICE
1.01. STATEMENT OF LEGISLATIVE FINDINGS, INTENT AND PURPOSE
The Council finds that the orderly regulation of cable com- �
munications within the City of Saint Paul will help insure the
most effective distribution of quality cable communication service
at acceptable rates to the subscribers and reasonable return to
the system operators.
1.02. DEFINITIONS
For the purpose of this ordinance and any franchise granted
subject to the conditions of this ordinance, the following terms,
phrases, words, and their derivations shall have the meaning given
' herein. When not inconsistent with the context, words used in the
present tense include the future, words in the plural number in-
clude the singular number, and words in the singular number include
the plural number. The words "shall" and "will" are mandatory
and "may" is permissive. Words not defined shall be given their
COUIVCILMEIV Requested by Department of:
Yeas Nays
In Favor —
Against BY
Form Appro ed by Cit Attorne
Adopted by Council: Date
Certified Passed by Council Secretary BY " �
BY
Approved by Mayor: Date Approved by Mayor for Submission to Council
By BY
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WHITE - CITV CLERK � ... . . . . . . . . . � � .
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CANqRY - DEPARTA4ENT
BLUE . -Ml►YOR , File NO.
j OrG6Z1ZGLIZCP. Ordinance N O. '
Presented By
Referred To Committee: Date
Out of Committee By Date
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COUNCILMEN Requested by Department of:
Yeas Nays
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Adopted by Council: Date .
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Certified Passed by Council Secretary BY
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Approved by Mayor: Date Approved by Mapor for Submission to Council
BY � By .
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CAN RV—DTcPARTMENT��
,<�. File N 0. �' ` �T ` T
, i� O�f�LZ/LSti/`CG Ordinance N 0.
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Pr�eseated By ,
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Refer�ed To' Coramittee: Date
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Approved by Mayor: Date � Approved by Maytx for Submission to Council :
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2.
common and ordinary meaning.
a. "Access Channels" means those channels dedicated by law,
rule, regulation or commitment of the company to the programming
use of the general public, local government, educational institu-
tions or the leased use of commercial or noncommercial entities.
b. "Cable Communications Officer" means that individual,
official or employee of the City charged with the responsibility
of administering the terms and conditions of a cable communications
franchise.
c. "Cable Communications System" shall mean a system of
antennas, cables, wires, lines, towers, waveguides, or other con-
ductors, converters, equipment or facilities, designed and con-
structed for the purpose of producing, receiving, transmitting,
amplifying and distributing, audio, video and other forms of elec-
tronic or electrical signals, located in the City. Said definition
shall not include any such facility that serves or will serve only
- �, , � ������t
5.
1.04. REQUIREMENT FOR CERTIFICATE OF CONFIRMATION, MCCB
APPROVAL AND COMPLIANCE WITH ALL STATE AND FEDERAL
LAWS
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 Minnesota
Cable Communications Board. Any cable communication system within
the City of Saint Paul shall at all times comply with all required
laws and regulations of the state and federal government or any ad-
ministrative agencies thereof not later than one year after their
promulgation.
1.05. FRANCHISE: TERMS AND CONDITIONS
A nonexclusive fifteen (15) year franchise may be granted by
ordinance to a cable communications company to construct and operate
a system to serve the City of Saint Paul. The provisions of this
ordinance shall be incorporated by reference into the franchise. The
City and Company may agree to additional terms and conditions as may
be deemed necessary, providing that said terms and conditions are
consistent with the provisions of this ordinance and applicable law.
No franchise shall be awarded by the City which does not re-
quire the following:
. � . . . � ���8��
6.
a. The construction of a distribution system (trunk and feeder
cables) throughout all areas of the �ity within three (3) years of
the franchise ordinance adoption;
b. The delivery of at least 30 channels to subscribers;
c. The activation of two-way capability throughout the system;
d. A system design and construction so that a network (s) serv-
ing residential and institutional users will accommodate interactive
data communications, and that the total network transmission time
will be less than one-tenth of a second;
e. The provision of four dedicated access channels (one each
for public, governmental, educational and leased use) plus the reg-
ional channel required by rules of the Minnesota Cable Communications
Board. Further, all residential subscribers who receive all or any
part of the total services offered on the system shall also receive
all access channels on all tiers of service at no additional charge
for service or installation;
f. A system design that will accommodate simultaneous video
transmissions on at least one channel of the subscriber network for
cablecast to separate audiences located in different geographic
areas of the City;
. � . , , � � � �.-�--�7y���-}
I ,
6 (a) .
g. The carriage of all local television broadcast stations
and other broadcast signals required by the FCC;
h. A system design and maintenance practices meeting FCC
technical standards; and
i. A system design which enables municipal officers to imple-
ment an emergency alert via audio and/or video signal transmission
which would override or be superimposed on cablecast programming.
SECTION 2. OFFICE OF CABLE COMMiJNICATIONS
2.01. ESTABLISHNIENT
Within the office of the Mayor, there shall be an office of
Cable Communications. The Communications Officer of this office
shall be appointed by the Mayor with the consent of the Council,
and shall be in the unclassified service of the City.
• . . . ����� /
9.
c. The Commission shall have the following duties and respon-
sibilities:
(1 ) Monitoring development of the cable communication system,
overseeing rate adjustments, testing the performance of the system and
resolving consumer complaints;
(2) Preparing the submitting an annual report to the City, the
Company and the Minnesota Cable Communications Board assessing the
performance of the Company according to the terms of the franchise.
(3) Making recommendations to the City regarding the apparent
or likely need for upgrading the cable communication system to meet
the current state of-the-art;
(4) Preparing the submitting to the City, the Company and the
Minnesota Cable Communications Board three (3) months prior to the
expiration of the franchise and three (3) months prior to the expira-
tion of the Certificate of Confirmation, a report which shall include
a written appraisal of the performance of the f ranchisee over the entire
length of the franchise. The report shall also include recorr�nendations
for revised or additional provisions of the franchise, considering at
least the following items: channel capacity, channels for access cable-
casting, two-way capability and the need for further service
. . . � �.�7 �g5�
��.
d. The City reserves the right to determine how the access
channels will be administered.
3.02. PUBLIC NOTICE
Minimum public notice of any City public meeting relating to
the franchise shall be by publication at least once in a local
newspaper of general circulation at least ten (10) days prior to
the meeting, posting at City Hall and commencing on the tenth day
prior to the meeting, Company shall notify its subscribers of the
meeting by announcement on at least two (2) channels of its cable
communication system between the hours of 7:00 p.m. and 9:00 p.m. ,
for five (5) consecutive days. Such announcemEnt shall be made on
the two channels of highest viewership on which such announcement
is feasible.
3.03. PERFORMANCE EVALUATION SESSIONS
a. The City Council may require cable communication system
performance evaluation sessions within thirty (30) days of the
third, fifth and tenth anniversary dates of the Company' s award of
the franchise and as required by federal and state law. Al1 such
evaluation sessions shall be open to the public.
b. Special evaluation sessions may be held at any time during
the term of the franchise at the request of the Council or the
Company.
. � . , . � ��y�,��
.
I 21.
Violation of Section 3.06, subdivisions e through g shall not
be subject to remedy and shall be assessed from the first date of
occurrence.
b. Whenever a penalty has been assessed, the Company may, with-
in ten (10) days of the tender of written notice as provided for in
Section 3.07 (a) , notify the Cable Communications Officer by regis-
tered mail that there is a dispute as to whether or not a violation
has, in fact, occurred. Such notice shall specify with particularity
the matters disputed by the Company.
The Cable Communications Officer shall, upon receipt of the Com-
pany' s letter, cause the matter to be referred to the City Council
for a hearing. A hearing shall be held within thirty (30) days of
receipt of the Company' s letter by a Committee designated by the
Council, or if mutually agreed to by the parties, by an independent
hearing examiner appointed by the Council, to determine if there is
rsason to believe the Company has committed a violation of Section
3.06. After the hearing and review of the Committee' s report or
hearing examiner' s report, the Council shall determine if there is
reason to believe the Company has committed a violation of Section
3.06, and shall make written findings of fact relative to their
determination.
c. Upon a determination by the Council that there is reason
to believe a violation has taken place, or in the event the Company
chooses not to dispute the finding of the Cable Communications
Officer, the City Director of Finance and Management Services shall
- � . . . � ��"7y��
26.
completes construction. The procedure to change subscriber rates
shall be in accordance with Section 6.03 of this ordinance, and
increases in rates shall be based upon the concept of fair and rea-
sonable rates to both Company and subscribers which in the aggregate
meet all applicable costs of service provided by Company including
fair return on invested capital, assuming efficient and economical
management. Residential subscriber contracts, if any, may not ex-
ceed twelve (12) months unless after twelve (12) months the contract
may be terminated without penalty at the option of the subscriber.
6.02. REQUEST FOR RATE ADJUSTMENT
Company may make application for a revision of the rate sched-
ule at any time after the Company has completed construction.
6.03. PROCEDURE 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 7.
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 obligations
� �� . � ��y���}
28.
the Company. The Company shall bear the burden of demonstrating
the justness, reasonable ness 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 System services
and to derive a reasonable profit therefrom under
the existing rate schedule and under the proposed
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 the Company;
(5) the original cost of the System less depreciation;
(6) a fair rate of return with respect to the cost or
borrowing and the rates of return on investments
having similar risks to that of community antenna
television;
(7) the extent to which the Company has adhered to the
terms of this agreement;
(8) fairness to City residents, subscriber and users;
(9) capital expenditures by the Company in providing up-
dated technology and service to subscribers; and
(10) such other 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
, ' ' G�—��c.�.��}
36.
f. The issue of forfeiture and termination shall automatically
be placed upon the City Council agenda at the expiration of the time
set by it for compliance. The Council then may terminate the fran-
chise forthwith upon finding that Company has failed to achieve com-
pliance or may further extend the period, in its discretion.
g. In the event City Council terminates the franchise, the
Company shall have the statutory period beginning the day next fol-
lowing the date the Council terminates the franchise within which to
file an appeal with the Minnesota Cable Communications Board. Dur-
ing such period and until the Board determines the appeal, if an
appeal is taken, the franchise shall remain in full force and effect,
unless the term thereof sooner expires.
8.02. FRANCHISE RENEWAL
Company may apply for renewal of the franchise no earlier than
tw� (2) years before the expiration date. If Company proposes new
or improved services which do not fall within the scope of this
franchise, Company may apply at any time for a new franchise to
commence earlier than the expiration date of this franchise.
The application shall be adequate and in a form acceptable to
the City and should include the applicant' s present name, business
address, business form and proposal including types of service and
. -. . � ��7 �8.��
37.
operation, technical standards, and any other proposed amendments.
If, based upon Company' s performance during the franchise term,
the proposal study and report thereon, and the public hearings,
Council finds a renewal of the franchise with Company within the
public interest, Council may enter into a renewal of the franchise
with Company under such terms and conditions and for a term of not
more than five (5) years.
8.03. RIGHT OF MUNICIPAL ACQUISITION
a. In the event the Company forfeits or upon revocation or
other termination of the franchise pursuant to provisions of this
ordinance, or at the normal expiration of the franchise term, City
shall have the right of first refusal, directly or as an intermedi-
ary, to purchase the franchised cable communication system.
The value of the franchise shall be the aggregate of the re-
placement value of tangible assets of the franchised cable communi-
cation system. "Replacement value" shall be determined by the unit-
in-place method.
In the acceptance of a franchise, Company expressly waives its
rights, if any, to relocation costs that might otherwise be provided
by law.
b. Upon exercise of this option and the payment of the above
sum by the City and its service of official notice of such action
. . � � ������
. . :
,
38.
upon Company, the Company shall immediately transfer to the City
possession and title to all facilities and property, real and per-
sonal, of the cable communication system, free from any and all
liens and encumbrances not agreed to be assumed by the City in lieu
of some portion of the purchase price set forth above; and the Com-
pany shall execute such warranty deeds or other instruments of con-
veyance to City as shall be necessary for this purpose.
c. In the event City and Company cannot agree upon the value
of cable communication system, either may give notice of a demand to
the other for arbitration.
Arbitration shall commence and proceed according to law and
shall be governed by Section 3.05, "Arbitration of Disputes" .
8.04. FORECLOSURE AND RECEIVERSHIP
Upon the foreclasure or other judicial sale of all or a substan-
tial part of the cable communication system, or upon the termination
of any lease covering all or a substantial part of the cable commun-
ication system, the Company shall notify the City of such fact, and
such notification shall be treated as a notification that a change
in control of the C�mpany has taken place, and the provisions of
the franchise governing the consent of the City Council to such
change in control of the Company shall apply.
� , � � �.-�yg��
. . ..
� �.
39.
The City Council shall have the right to cancel the franchise
one hundred twenty (120) days after the appointment of a receiver,
or trustee, to take over and conduct the business of the Company,
whether in receivership, reorganization, bankruptcy or other action
or proceeding, unless such receivership or trusteeship shall have
been vacated prior to the expiration of said one hundred twenty
(120) days, or unless :
a. Within one hundred twenty (120) days after his election or
appointment, such receiver or trustee shall have fully complied with
all the provisions of this ordinance and remedied all defaults
thereunder; and
b. Such receiver or trustee, within said one hundred twenty
' (120) days, shall have executed an agreement, duly approved by the
court having jurisdiction in the premises, whereby such receiver or
trustee assumes and agrees to lae bound by each and every provision
of this ordinance and the franchise granted to the Company.
8.05. ABANDONMENT OR TRANSFER
Notwithstanding the provisions of the franchise, the Company
shall not abandon any cable communications service or any portion
thereof without having given three (3) months' prior written notice
to the City and the Minnesota Cable Communications Board. The Com-
pany shall not abandon any cable communication service or any
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9.
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c. The Commi�ssion shall have the fo1lo��ring d�;t.ic�s ��nd respon-
s?bilities:
(1 ) Mon�toring development of the cab7e corrununication system,
overseeing rate adjustments, testing the perfor-�nance of the system and
re�olviny consumer complaints;
(2) Preparing �nd` submitting an annual report to tf�+e City, the :
Company and the Minnesota Cable Communications Board assessing the '
performance of the Company accordi ng to the terms of f.he :franchi se.
(3) Making recomme�dations to the City regarding fi.he apparent
or likely r.eed for upgrading the c;:ble co�rununicatiun system to rneet
the current state of-the-art;
(4) Preparing and' submitting to the City, �he Company and the
Minnesota Cable Communications Board three (3) manths prior to the �
t:
expiration of the franchise and three (3) months prior to the expira- -
tion of the Certificate of Confirmation, a report which shall inclt�de
a written appraisal of the perfot�r.�ance of the franchisee over the entire "
1 ength of the franchi se. The report shal 1 a1 so i ncl ude recorr�riecidati orrs
for revised or additional provisions of the franchise, considering at
least the following items: channel eapacity, channels for access cable-
casting, two-way capabil�ty and the need for further service
� � � � �`�4�5��
► �8.
the Cempany. The Company shal]_ bear the burden of demonstrating
the justness, xeasonable ness and acc_ur_acy of the costs.
The Council shall consider the following factors in approving
or disapproving the application:
� (1) _ the ab ility of the Company to render System services
- - - and to derive a reasonable profit therefrom under .
---. _ -_ -
' - -� the ea�isting rate schedule and under the nroFosed rate �
_-- � _ sched�.al e; . � - �
(2} the revenues and profits derived front System services; �
(3) the efficiency of the Cornpany;
(4) the quality of the service offered by the Company;
(5) the original cost of the System less depreciation;
(6) a fair rate of return with respect to the cost or
t. borrowing and the rates of return on 'investments
having similar risks to that of ca�le comnunicatio�rs; .
- (7) the extent to which the Company has adhered to the
_ terms of this agreement;
(8) fairness to City residents, st�'�scriber and users;
(9} capital expenditures by the Cornpany in providing up-
� , dated technology and service to subscribers; and
(10) such other factors as Council may deem relevant.
, �
The Council will not consiaer any valuation based upon the
franchise right or the Company' s goodwill. Neit=her the value of
the franchise nor the value of the Company' s goodwill shall be
. ,
, •
, ' � � �������� 3� �
(2 ) ' Attempt to dispose of �ny o� the facilities or
property of its cabl e sys�el-n to prevent the City ��om
purchasing it, as provided :�or herein;
(3) Attempt to evade any material pzovisioz� of the fran-
chise or practices any fraud or deceit tipon the City
or its subscribers or customers�
(4) Failure to begin or complete system construction or
syst�l�-n extension as provided under the franchise. -
- (S) Fai1�e to pro�Tide the types or quality of serviceas '
requi red herein; �
' (6) Failure to restore service a�ter ninety-six (96) � �
corisecutive hours of interrupted service, except
when approval of such interruption is obtained from
the City; � . '
(7) Material misrepresentation of fact in the application
for or negotiation of the franchise; �
: .(8) FailLre to replenish the fund secured by the letter of :_
. credit; and .
(9) Failure to maintain bonds and/or insurance.
b_ The foregoing shall not constitute a major breach .if the
violat�on occurs but it is without fault af the Company or occ�rs
� as a result oi circw-r�stances beyond its control. Company shall not
be excused :by rnere econo?nic hardship nor by mis�easance or malfeas-
ar.ce of its directors, o�ficers or employees.
c_ The City may make a writte� demand by registered mail,
return receipt requested, that the Companv comply wit}-i any such
� •
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2.
common and ordinary meaning.
a. "Access Channels" means those channels dedicated by law,
rule, regulation or commitment of the Company to the programming
use of the general public, local government, educational institu-
tions or the leased use of commercial or noncommercial entities.
b. "Cable Communications Officer" means that individual,
official or employee of the City charged with the responsibility
of administering the terms and conditions of a cable communications
franchise.
c. "Cable Communications System or Service" shall mean a
system of antennas, cables, wires, lines, towers, waveguides, or
other conductors, converters, equipment or facilities, designed
and constructed for the purpose of producing, receiving, transmitting,
amplifying and distributing, audio, video and other forms of elec-
tronic or electrical signals, located in the City. Said definition
shall not include any such facility that serves or will serve only
l ,
j �
6 (a) .
g. The carriage of all local television broadcast stations
and other broadcast signals required by the FCC;
h. A system design and maintenance practices meeting FCC
technical standards; and
i. A system design which enables municipal officers to imple-
ment an emergency alert via audio and/or video signal transmission
which would override or be superimposed on cablecast programming.
SECTION 2. OFFICE OF CABLE COMMUNIGATIONS
2.01. ESTABLISHMENT
Within the office of the Mayor, there shall be an office of
Cable Communications. The Cable Communications Officer shall be
appointed by the Mayor with the consent of the Council, and shall
be in the unclassified service of the City until the completion of
construction of the cable system, at which time the position shall
become classified consistent with Civil Service Commission regula-
tions and the office shall be located in the Department of Community
Services.
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8.
f. Receive for review and evaluation all data and reports
required of the franchisee and, where appropriate, forward such
data to interested or affected City departments; and
g. Make such recommendations and reports to the City Council
and Mayor as may be deemed necessary to the regulation and develop-
ment of the cable communications system.
2.03. CABLE COMMUNICATIONS COMMISSION
a. There shall be established a citizens' advisory committee
entitled the Saint Paul Citizens Cable Communications Commission.
The Commission shall consist of nine (9) members, appointed by the
Mayor with the approval of the City Council, who shall serve with-
out remuneration. The cable communications officer shall serve as
a nonvoting member of the Commission. Appointments to the Commis-
sion shall be made in conformity with applicable federal, state and
local laws regarding discrimination. Appointees may not be commer-
cially involved in cable communications activities or other com-
munications media;
b. Members shall serve for two (2) years. The terms of the
members shall be staggered, with four (4) members appointed for one
(1) year terms, and five members appointed for two (2) year terms.
Vacancies shall be filled by appointment by the Mayor with the
approval of City Council;
� ' �
9.
c. The Commission shall have .the following duties and respon-
sibilities : '
(1) Monitoring development of the cable communication system,
overseeing rate adjustments, testing the performance of the system
and resolving consumer complaints;
(2) Preparing and submitting an annual report to the City, the
Company and the Minnesota Cable Communications Board assessing the
performance of the Company according to the terms of the franchise.
(3) Making recommendations to the City regarding the apparent
or likely need for upgrading the cable communication system to meet
the current state of-the-art;
(4) Preparing and submitting to the City, the Company and the
Minnesota Cable Communications Board three (3) months prior to the
expiration of the franchise and three (3) months prior to the ex-
piration of the Certificate of Confirmation, a report which shall
include a written appraisal of the performance of the franchisee
over the entire length of the franchise. The report shall also in-
clude recommendations for revised or additional provisions of the
franchise, considering at least the following items : channel cap-
acity, channels for access cablecasting, two-way capability and
the need for further service �
, �
10.
to be extended within the franchised area based upon a reassessment
of the communication needs of the City in relation to the services
generally offered by the cable industry.
d. Such other duties as the Mayor or City Council may specify.
e. The Commission shall meet no less than twice annually and
at the call of the Chairman. All meetings of the Commission shall
be open to the public.
SECTION 3. ADMINI5TRATION AND REGULATION
3.01. RULES AND REGULATIONS
a. In addition to the inherent powers of the City to regulate
and control the franchise, and those powers expressly reserved by
the City, or agreed to and provided for herein and within the fran-
chise, the right and power is hereby reserved by the City to promul-
gate such additional reasonable regulations as it shall find necessary
in the exercise of its lawful powers and in furtherance of the terms
and conditions of this ordinance and the franchise.
b. The City may also adopt such regulations at the request of
Company upon application to the City.
c. Any rules or regulations adopted pursuant to this section
shall be published at Company' s expense and be readily available
to subscribers.
, . .
19.
d. Forty-five (45) days following adoption of a resolution of
Council determining a failure of Company to comply with construction,
operational, maintenance standards, or the offering, Company shall
pay to the City Two Hundred Dollars ($200.00) per day for each day,
or part thereof, that such noncompliance continues.
e. For initiating or using a procedure or device for procuring
information or data from a subscriber' s terminal, dwelling or busi-
ness without the prior valid authorization of the affected subscriber
as required by Section 4.03, "Subscriber Privacy", the Company shall
pay Fifty Dollars ($50.00) per day for each day, or part thereof,
the violation continues or occurs.
f. For selling, providing or otherwise making available to
anyone any information about subscribers obtained by monitoring trans-
mission of any type of signal from a subscriber' s terminal, dwelling
or place of business without the specific written authorization of
the subscriber as required by Section 4.04, "Prohibit Compilation
of Subscriber Lists for Sale", the Company shall pay Five Thousand
Dollars ($5,000.00) for each such violation. In addition, the total
amount of funds paid the Company for this information shall be for-
feited to the City by Company.
g. For tapping, monitoring or for arranging to tap or monitor,
or permitting the tapping, any cable, line, signal, input device or
subscriber outlet or receiver for any purpose whatsoever without the
specific written authorization of the subscriber or pursuant to
court order, the
23.
and made a part of this ordinance by reference.
4.02. EQUAL OPPORTUNITY EMPLOYMENT
Company shall strictly adhere to the equal employment opportun-
ity requirements of the federal government as well as state and local
laws and regulations and shall keep a record of employment statis-
tics which shall be available for public inspection during normal
business hours.
4.03. SUBSCRIBER PRIVACY
No signals, including signals of an Interactive Communications
channel, shall be transmitted from a subscriber terminal except as
required to provide a service authorized by ordinance of the sub-
scriber. The Company, the City and any other person shall neither
initiate nor use any procedure or device for procuring information
or data from a subscriber' s terminals or terminal by any means,
without the prior valid authorization of the affected subscriber.
Valid authorization shall mean written approval from the subscriber
which shall not have been obtained from the subscriber as a condi-
tion of service, except in those situations in which authorization
is needed for billing, and which may be revoked by the subscriber
at any time. The request for such permission shall be contained in a
, - .
25.
4.05. MONITORING PROHIBITED
The Company, the City, or any of their agents shall not tap or
monitor, arrange for the tapping or monitoring, or permit any other
person to tap or monitor, any cable, line, signal, input device,
or subscriber outlet or receiver for any purpose whatsoever, with-
out the prior valid authorization of the affected subscriber.
SECTION 5. FRANCHISE FEE
5.01. PAYMENT
Company shall pay a franchise fee of five percent (5/) of gross
revenues. Payments shall be made on a monthly basis. The install-
ment payment for each shall be due on or before the last day of the
following month and shall be made to tYe City Department of Finance
and Management Services.
5.02. RENEGOTIATION
The franchise fee set forth in 5.01 shall be subject to rene-
gotiation at such time as laws and regulations permit.
SECTION 6. RATES AND RATE ADJUSTMENT
6.01. RATES ORDINANCE
The City shall initially set by ordinance rates in accordance
with the successful applicant' s proposal for a cable communications
franchise. The City shall also approve a schedule for maximum rates.
The initial rates shall not be changed until such time as the Company
.
„ . ,
28.
the Company. The Company shall bear the burden of demonstrating
the 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 System services
and to derive a reasonable profit therefrom under
the existing rate schedule and under the proposed
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 the Company;
(5) the original cost of the System less depreciation;
(6) a fair rate of return with respect to the cost or
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, subscriber and users;
(9) capital expenditures by the Company in providing up-
dated technology and service to subscribers; and
(10) such other 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
� � � � ,
33.
and the grounds therefor may be in writing if r equested. Reasonable
conditions in furtherance of the purpose and intent of the fran-
chise may be attached by Council to an approval or modification and
may be acted upon by Company upon acceptance in writing by Company.
j . Any time limit may be waived by consent of both Council and
Company.
k. Nothing contained herein or within this ordinance shall be
construed as limiting the right of the City to require that an ap-
plication be filed by the Company whenever the Council reasonably
determines that the Company is undertaking any change in this ordi-
nance which negatively affects subscriber services.
SECTION 8. TERMINATION AND TRANSFER OF FRANCHISE
8.01. TERMINATION AND FORFEITURE
a. In addition to all other rights and powers retained by the
City under the franchise, this ordinance or Qtherwise, the City
reserves the right to forfeit and terminate the franchise and all
rights and privileges of the Company hereunder in the event of a
substantial breach of its terms and conditions. A substantial breach
by Company shall include, but shall not be limited to the following:
(1) Violation of any material provision of the franchise
or any material rule, order, regulation or determina-
tion of the City made pursuant to the franchise;
.
� � ' ,
34.
(2) Attempt to dispose of any of the facilities or
property of its cable system to prevent the City
from purchasing it, as provided for herein;
(3) Attempt to evade any material provision of the
franchise or practices any fraud or deceit upon
the City or its subscribers or customers;
(4) Failure to begin or complete system construction
or system extension as provided under the franchise;
(5) Failure to provide the types or quality of service
as required herein;
(6) Failure to restore service after ninety-six (96)
•consecutive hours of interrupted service, except
when approval of such interruption is obtained from
the City;
(7) Material misrepresentation of fact in the application
for or negotiation of the franchise;
(8) Failure to replenish the fund secured by the letter
of credit within thirty (30) days after final draw
by City; and
(9) Failure to maintain bonds and/or insurance.
b. The foregoing shall not constitute a major breach if the
violation occurs but it is without fault of the Company or occurs
as a result of circumstances beyond its control. Company shall not
be excused by mere economic hardship nor by misfeasance or malfea-
sance of its directors, officers or employees.
c. The City may make a written demand by registered mail,
return receipt requested, that the Company comply with any such
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