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Council File # � D'" �t't�
ORIGINAL
Ordinance #
Green Sheet # �
ORDINANCE
CITY OF SAINT PAUL, MINNESOTA
Presented &y
Referred To
Committee: Date
An ordinance amending chapter 430 of the Legislative Code
pertauung to Cab1e Communications Service
THE COUNCIL OF CITY OF SAINT PAUL DOES ORDAIN:
Section 1.
Legislative Code Chapter 430, pertaining to Cable Communications Service, is hereby
amended as provided in the attached 33-page document entitled "Chapter 43�. Cab1e
Communications Service."
� Section 2.
This ordinance is effective upon 30 days after its passage, approval and publication
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Requested by Department of:
BY:
Form Appr �d by City Attorney
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Appzoved by Mayor for Submission to Council
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appx
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22
Adopted by Council: Date F���-�
Adoption Certified 6y Covncil Secretary
DATE
GREEN SHEET
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N COUNCIL AGENDA BY (DAT�
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An Ordinance amending Chapter 430 of the Legislative Code pertaining to Cable
Gommunications Seivice.
PLANNING COMMISSION
CIB CAMMITfEE
CNIL SERVICE COMMISSION
APPROVED
OF TRANSACTION S
SOURCE
r+as u,i� persoMfifin ever warkea u�ae. a ca,vact r« mis eeparrmenn
VES NO
Hes fhie peisonfirm ever been a Cily empbyee7
VES NO
Doec this personlfirm p066ess d SIdA nOt �o�mallypo6sessed by a�ry CurreM city empbyee?
YES NO
4 Uue PeBmlfi�n a fargeted vendoCl
YES NO
elain all ves anavre�s m seoa�afe sheet aM atlsch W areen sheet
(GRCLEON� VES NO
ACTNITY NUI�ER
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Chapter 430. Cable Communications
Service'�
*Editor's note--This chapter is derived from Ord. No. 16661, adopted May 29, 1980.
Cross reference(s)--Steam franchise, App. A; gas franchise, App. B; electric franchise,
App. C; district heating franchise, App. F; Energy Park Energy System franchise, App. G;
Continentai Cabievision franchise, App. H, renewed and replaced by Continental Cablevision
francluse, App. _.
ARTICLE I. 430.Q1. STATEMENT OF INTENT; DEFIIVITIONS; FRANCHISE
REQUIREMENT, TERMS AND CONDITIONS*
xEditor's nute--The numbers in the article tifles of this chapter are derived from the
numbers given to several sections in this chapter by the city and have been retained herein at the
discretion of the editor for ease of reference by the user.
Sec. 430.Oi1. Statement of leg►slative �ndings, intent and purgose.
The council finds that the orderly regulation of cable communications within the City of
Saint Paul will help ensure the most effective distribution of quality cable service at acceptable
rates to the subscribers and reasonable return to the system operators.
Sec. 434.012. Defmitions.
For the purpose of this chapter and any franchise granted subject to the conditions of this
chapter, the following terms, phrases, words and their derivarions shall have the meaning given
herein, except as otherwise specified in a franchise. When not inconsistent with the context,
wozds used in the present tense include the future, words in the plural number include the
singular number, and words in the singulaz number include the plural number. The words "shall"
and "wili" aze mandatory and "may" is pernussive. Words not defined sha11 be given their
common and ordinary meaning. To the extent that the rate regulation terms or provisions herein
conflict with the rate regulation provisions of the Cable Communications Policy Act of 1984, 47
U.S.C. § 521 et seq. as amended (hereinaftez "Cable Act"); or with rate regulations prescribed by
the Federal Communications Comxnission pursuant thereto (hereinafter the "FCC Rate
Regulations") the Cable Act and the FCC Rate Regulafions shall control.
Access channels means those channels dedicated by law, rule, regutation or commitment
o£ a company to the programs of the general public, local government, educational institutions or
the leased use of commercial or noncommercial enrities..
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Basic Service or basic cable service shall have the same meaning as the term "basic
service" under federal law.
Cable Communications company or company means any person owuing, controlling,
operating, managing ar leasing a cable system witt�in the City.
Cable communications officer means that individuai, official or employee of the city
chazged with the responsibility of administering the terms and conditions and far the planning
and development of cable services of a cable franchise.
Cable Service means the one-way transmission to subscribers of (A) video programming,
or (B) other progranuning service, and the subscriber interaction, if any, which is required for the
selection or use of such video programming or other programming service.
Cable system has the same meaning as the term cabie system under federal law, and shall
include all equipment, facilities, and devices appurtenant to such cable system.
Ciry is the City of Saint Paul, a municipal corporarion, in the State of Minnesota, as it
exists and as its borders may from time to time be changed. Where this ordinance requires that
an action be taken by the city, that action may be taken by any person authorized to act on the
city's behalf.
Company means the grantee of rights under a franchise, ar its permitted successor,
transferee or assignee.
Connection shall mean the attachment of the drop to the first radio or television set ar to
an electronic terminal device or converter of the subscriber.
Converter sha11 mean an electronic device, which converts signals from cable distribution
system frequencies to standard broadcast frequencies.
Cost of service regulation shali mean the method of determining rate increases contained
in this ordinance, as modified or superseded by the Cabie Act or FCC Rate Regulations.
Council is the city council of the City of Saint Paul. .
Drop shall mean the coazcial cable that connects the facility to the nearest feed cable of
the cable network.
FCC sha11 mean the Federal Communications Commission and any legally appointed,
designated or elected agent or successor.
Franchise shall mean a grant of rights and privileges to provide cable service made
pursuant to this chapter to construct and operate a cable system.
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Gross revenues shall mean all revenue derived direcdy or ind'uectly by the company, its
affiliates, subsidiaries, parent and any person in which the company has a financial interest from
or in connecrion with the operation of the company's cable system to provide cable services.
Gross revenues shall include, by way of example and not limitation, revenues from basic service,
other cable service tiers, monthlq fees for programn?ing offered on a per-channel or per-program
basis, installation and reconnection, leased channel fees, converter rentals, studio rental,
production equipment and personnel fees, interactive cable service, advertising, cable store sales,
late payment service fees and other services offered over the system, subject to such exclusions
as may be specified in a franchise.
Installation sha11 mean the connecrion of a cable system from feeder cable to subscribers'
facilities.
Local shall mean within Yhe City of 5aint Paul.
Make-ready sha11 mean the rearrangement of existing wires on utility poles performed by
telephone and electric utility companies to allow for the addition of cable plant on such poles.
Person includes any individual, corporation, partnership, association, joint stock
company, trust, or any other legal entity, including the city.
Program shall mean any signal, message, graphics, data, communication content service
or broadcast-type program.
Public property is any property owned by the city other than a street or sidewalk.
Sidewalk shall mean that portion of a highway, other than the roadway, set apart by curbs,
barriers, markings or otl�er delineation for pedestrian travel, including parkways, not on private
lands.
Subscriber means the city, any government entity or any other person who legally
receives any cable service delivered over a cable system.
Street shall mean the surface of and the space above and below any public street, road,
highway, freeway, lane, path, public way or place, alley, court, sidewalk, boulevard, pazkway,
drive or other easement now or hereafter held by the city for the purpose of public travel and
sha11 include such other easements or right-of-way as shall be now held or hereafter held by the
city which shall within their proper use and meaning enfitle the city and a company to use thereof
for the purpose of installing or transmitting cable transmissions over poles, wires, cables,
conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other
property as may be ordinarily necessary and pertinent to a cabie system.
User sha11 mean any individual, insriturion, organization, or business that purchases any
portion of a cable system's bandwidth for delivery of programming or services or for receipt of
programining or services, or which is entitled to use any portion of the bandwidth at no charge.
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YValkout shall mean the process whereby a company and telephone and electric utiliTy
companies inspect utility poles throughout the city to detemune the amount of make-ready to be
performed by the utility companies.
(Ord. No. 17364, § 1, 6-17-86; C.F. No. 92-1374, § 30, 9-22-92; C.F. No. 93-1829, § l, 3-30-94)
Sec. 430.013. Franchise requirement.
No person shall construct or operate or participate in the construction of operation of a
cable system within the City of Saint Paul without first obtaiiung a franchise issued by the ciTy.
Sec. 430.014. Requirement for certificate of confirmation, state approval and compliance
with all state and federal laws.
No person shall operate or construct, or participate in the construction ar operation of a
cable system within the City of Saint Paul without first obtaining any certificate required by state
law, rule or regularion.
Any cable system within the ciry shall at all times comply with all state laws and rules
regarding cable communications not later than one (1) year after they become effective unless
otherwise stated and with all federal laws and regulations regarding cable as they become
effective; provided that, nothing herein shall be read to permit a company to avoid any obligation
it owes under a franchise, to the extent that the obligation is grandfathered, or to the extent that
the obligation may be enforceable.
(Ord. No. 17364, § 2, 6-17-86)
Sec. 430.015. Franchise; terms and conditions.
(a) A nonexclusive franchise of up to fifteen-yeazs may be granted by ordinance to a
person to constnxct and operate a cable system to provide cable service in the City of Saint Paul.
Every franchise sha11 be subject to and incorporate the provisions of this chapter. A franchise
of less than fifteen years in duration may include a provision for extension of the term by the city
acting unilaterally, or upon request of the company, if the city, in its sole discretion, determines
that: (1) the public interest would be served thereby; ar the company has satisfactorily complied
with its obiigations hereunder; and the cable system is meeting the cable-related needs and
interests of the communit7, and the enforceable comxnitments of the company are such that the
cable system is expected to meet the needs and interests of the community over the extension
term. The city and a company may agree to additional terms and conditions as may be deemed
necessary in the public interest; providing, that said terms and conditions are consistent with the
provisions of this chapter and applicable law. While each franchise shall be subject to this
Chapter 430, this chapter is not a contract.
(b) No franchise shall be awarded by the ciry which does not meet the minimum
requirements set forth in Minnesota Statutes, Section 238.084, attached hereto as Appendix A
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and incorporated herein., and every franchise shali be deemed to require satisfaction of those
minimum conditions.
(Ord. No. 17364, § 3, 6-17-86)
Editor's note--The state statute, Section 238.084, referred to in paragraph (b) of ?
430.015 above, and attached as an AppendiY A to Ord. No. 17364, has not been set out herein,
but can be found on file for public inspecfion in the city clerk's office.
ARTICLE II. 430.02. OFFICE OF CABLE COMMUNICATIONS
Secs. 430.021, 430.022. Reserved.
Editor's note--C.F. No. 97-53, § 21, adopted Feb. 12, 1997, repealed §§ 430.021 and
430.022, which pertained to establishment and office functions, respectively, of the office of
cable communications, which secfions derived from Ord. No. 17364, §§ 4, 5, adopted June 17,
1986.
Sec. 430.023. Reserved.
Editor's note--Section 6 of Ord. No. 17364, adopted June 17, 1986, deleted § 430.023 in
its entirety. Prior to its deletion, § 430.023 pertained to the cable communications commission of
the city, and was derived from Ord. No. 16661, adopted May 29, 1980.
ARTICLE III. 430.03. ADMINISTRATION A1VD REGiJLATION
Sec. 430.031. Rules and regulations.
(a) Ciry may promulgate. In addition to the powers of the city to regulate and control the
franchise, and those powers expressly reserved by the city, or agreed to within a franchise, the
right and power is hereby reserved by the city to promulgate such additional reasonable
regulafions as it sha11 find necessary in the exercise of its lawful powers and in furtherance of the
terms and conditions of this chapter and a franchise.
(b) Request of comparry. The city may also adopt such regulations at the request of a
company upon application to the city.
(c) Access channels, administration. The city reserves the right to determine how the
public, educational and governmental access channels will be aduiivistered; to establish rules and
procedures for use of that access channel capacity ar to delegate responsibility for establishing
those rules to another entity; and to establish rules and procedures under which a company may
use such chauuel capacity when it is not being used for the purposes designated, and rules and
procedures under which such permitted use sha11 cease.
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Sec. 430.032. Public notice.
Public norice of any city public meeting relating to amendments to the franchise
ordinance, francluse renewal, performance evaluation sessions and hearings at which adverse
action may be taken against a company pursuant to its franciuse shall be by publication in a local
newspaper of general circulation at least ten (10) days prior to the meeting, and posting at CiTy
Hall.
(Ord. No. 17364, § 7, 6-17-86)
Sec. 430.033. Performance evaluation sessions.
In addition to such other remedies and procedures as may be provided for in this Chapter
430 or a franctuse, the City shall have the right to conduct evaluation seminazs as provided in
this Section 430.033.
(a) Evaluation. The city may hold periodic cable system performance evaluation sessions
on its own initiative or at the request of a company to review the performance of any or a11
companies. All such 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 430.032.
(b) Topics of discussion. 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 services, application of new technologies, system performance,
services provided, programming offered, customer complaints, privacy, amendments to this
chapter, judicial and FCC rulings, line extension policies, and company or city rules.
(c) Additional topics. Members of the general public may request that additional topics be
considered as part of the evaluation sessions.
(d) Cooperation with city. During a review and evaluation by city, each company shall
fully cooperate with city and shall provide such informafion and documents as city may request
to reasonably perform the review. Nothing in this section shall be read to lnnit a company's
obligation to provide informafion under other provisions of this Chapter 430, or a franchise.
(g) Tests and anttlyses. If at any time during its review the city council determines that
reasonable evidence exists of inadequate cable system performance, it may require a company to
perform tests and analyses directed toward such suspected inadequacies at the company's own
expense. Each Company required to perform tests and analyses sha11 fixlly cooperate with city in
performing such testing and sha11 prepaze 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 precipitated the special tests.
(2) What system component was tested.
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(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 infotination 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 sha11 sign all recards of special
tests and forwazd to the city such records with a report interpreting the results of the tests and
recommending actions to be taken.
(g) Tests, when required. Tests required pursuant to this section 430.033 shall only be
performed in response to specific complaints or problems that give the city reason to believe that
such tests are necessary to protect the public against substandazd cable service.
Sec. 430.�34. Complaints procedure.
Every company shall comply with such customer service standards as the City may adopt
from time to time, whether by regulation pursuant to this ordinance, or by ardinance or
resolution. At a minimum, every company shall satisfy the following standards, unless its
franchise provides otherwise.
(a) Local office; telephone access; hours; requirements; records. During the term of the
franchise, and any renewal thereof, each 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 malfunctions, billings disputes and similaz matters. The office must be
reachable by a locai, toll-free telephone ca11, and each company shall 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 sha11 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 pxovide the means to accept complaint calls twenty-four
(24) hours a day, seven (7) days a week. Inquiries and complaint calls sha11 be accepted by
customer service representatives between 8:00 a.m. and 10:00 p.m, seven (7) days a week. Any
service complaints from subscribers shall be investigated and acted upon within twenty-four (24)
hours. Any service complaint sha11 be resolved within three (3) calendar days. Upon notification
by a subscriber and verification by the company, the company shall credit a subscriber's account
on a pro rata basis for loss of service exceeding four hours within a twenty-four (24) hour period,
or for a loss of service that exceeds forty-eight (48) hours within a thirty-day period, except as
otherwise may be provided in the franchise. Each 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 shaJl be made available for
periodic inspection by city.
(b) Information concerning procedures, etc. As subscribers are connected ar reconnected
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to the system, the company shall, by appropriate means, such as a card or brochure, fiunish
information concerning the procedures for makiug inquiries or complaints, including the name,
address and local telephone number of the employee or employees or agent to whom such
inquiries or complaints aze to be addressed, and fiunish information concerning the city office
responsible for admiuish�ation of the franchise with the address and telephone number of the
office.
Sec. 430.035. Arbitration of disputes.
(a) Demand for arbitration. A franchise may provide that, in the event city and company
cannot resolve a dispute which arises as a result of the construction, operation or management of
the cable system and which is not governed by section 430.036, either party may give nofice of a
demand to the other for azbiiration.
(b) Procedures. Any arbitration provision shall provide that a11 disputes decided by
arbitration sha11 be pursuant to the provisions of the Uniform Arbitration Act, Minnesota
Statutes, Sections 572.08 throngh 57230, except the parties shall each, within fifteen (15) days
of the notice of a demand, appoint (1) one arbitrator who is experienced in cable communications
and not employed by or in any manner �liated with either city or company. Arbitrators shall
each agree upon the selection of a third azbitrator, similarly qualified, within fifteen (15) days.
(Ord. No. 17364, § 8, 6-17-86)
Sec. 430.036. Penaities.
Every 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 fhe letter of credit and a company as follows:
(1) For failure to complete system construction or upgrade in accordance with the
construction or upgrade plan provided in the franchise (as that plan may have
been modified by the cable communicafions officer in writing in accordance with
a franchise), unless the city council specifically approves the delay by motion or
resolution, due to the occurrence of conditions beyond company's reasonable
control, company may be fined as follows:
a. Up to two hundred fifty dollars ($250.00) per day for the first sixty (60)
days or part thereof the deficiency continues;
b. Between sixty (60) days and six (6) months, up to five hundred dollars
($500.00) per day or part thereof the deficiency continues;
a After six (6) months, up to one thousand dollars ($1,000.00) per day or
part thereof the deficiency continues.
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(2) For failure to provide data, documents, reports, informafion or to cooperate with
city during an application process or cable system review, company shail pay fifty
dollars ($50.00) per day for each day, or part thereof, the violation occurs or
continues.
(3) For failure to test, analyze and report on the performance of the system following
a tequest 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.
(4) Foriy-five (45) days foilowing adoption of a resolution of council determining a
failure of company to comply with construction, operational, maintenance
standazds or material provisions of the franchise, company shall pay to the city
two hundred dollars ($204.00) per day for each day, ar part thereof, that such
noncompliance continues.
(5) For inifiating or using a procedure or device for procuring information or data
from a subscriber's terminal, dwelling or business without the prior valid
authorization of the affected subscriber as required by section 430.043, the
company shall pay fifty dollars ($50.00) per day for each day, or part thereof, the
violation continues or occurs.
(6) For selling, providing or otherwise making available to anyone any information
about subscribers obtained by monitoring transmission 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 430.044, the company shall
pay five thousand doliars ($5,000.00) for each such violation. In addition, the total
amount of funds paid the company for this information sha11 be forfeited to the
city by company.
(7) For tapping, monitoring or for arranging to tap or monitor, or knowingly
permitting the tapping of, 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
dollazs ($1�,OOO.QO) per day for each day, or part thereof, the violation occurs or
continues.
(8) Each violation of each provision sha11 be considered a sepazate violation far which
a sepazate penalty can be imposed.
(9) Exclusive of the penalties set out above in this section, a violation of any
provision of this chapter is by Saint Paul Legislative Code, secrion 1.05 deemed
to be a misdemeanor.
(10) The rights reserved by the city herein aze in addi6on to all other rights and
remedies the city may have under this cha�ter. the franchise or any other law and
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aze not intended to be exclusive.
(Ord. No. 17364, § 9, 6-17-86; C.F. No. 92-1374, § 31, 9-22-92)
Sec. 430.037. Procedure upon determination of violation.
(a) Notice, remedy. Whenever the cable communications officer sha11 find that the
company has violated one (1) or more of the terms, conditions or provisions of section 430.036, a
written notice shall be sent to the company by registered mail, return receipt requested, informing
them of such violation or violations. Such notice shall be entitled a"Violation Notice." The
company may remedy violations of subsecfions (1) through (3) of section 430.036 within three
(3) days of tender of the registered letter bearing the "Violarion Notice." If the company fails to
remedy the violation within three (3) days after tender of the registered letter, penalries shall be
assessed in accordance with the provisions in section 430.036 and paragraph (b) of this section.
Violation of section 430.036, subsections (4) through (7) shall not be subject to remedy
and shall be assessed from the first day of occurrence.
(b) Disputed violation, heartng; findings. The company may, within ten (10) days of the
tender of written notice as provided for in paragraph (a), notify the cable communications officer
by registered mail that (i) there is a dispute as to whether or not a violation has, in fact, occurred
or that a penalty is owed; or (ii) the violation has been cured and all amounts owed have been
paid. Such notice shall specify with particularity the matters disputed by the company, and the
basis for any claims made by the company as to support any claim that the default has been
cured.
The cable communications officer sha11, upon receipt of the company's letter, cause the
matter to be re£erred to the city council for a hearing if theze is a dispute under (i), or the cable
communications officer is not satisfied that the cure is complete. A hearing shall be held within
thiriy (30) days of receipt of the company's letter by the council (or a committee thereo fl, 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 violation of section
430.036 or to determine whether the violation has been cured. 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 430.036, and whether the violafion
has been cured, and shall make written findings of fact relative to their determination.
(c) Satisfaction of Penalties. Upon a determination by the council that there is reason to
believe a violation has taken place or has not been cured (with all amounts owed paid); or in the
event the company chooses not to dispute the finding of the cable communications officer, the
city director of technology and management services shall immediately make withdrawals
against the letter of credit provided for in the franchise ordinance in accordance with the
penalties specified far such violations in section 430.036. The city director of technology and
management services may continue to make withdrawals without fiu�ther authorization from the
city council until the company has satisfactorily remedied the term, condition or provision
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violated.
(C.F. No. 97-53, ? 18, 2-12-97)
Sec. 430.038. Reports and records.
A company shall fully cooperate in maldng auailable at reasonable times, and the ciry
shall have the right to inspect and copy, the books, records, maps, plans and other like materials
applicable to its the Saint Paui system at any time during normal business hours; these materials
sha11 be produced to the City at a locafion designated by the City, provided that, where volume or
security necessitate, company may require inspection to take place on a company's local
premises, or such other mutually agreed location, in accordance with procedures set out in the
franchise. This section shall be read expansively to include informarion in whatever format
stored.
(b) Each company shall prepaze such reports regarding its cable system and the
operation, construction, maintenance (including management) thereof as the city may request.
ARTICLE IV. 430.04. RIGHTS OF INDIVIDUALS
Sec. 430.041. Equal opportunity for service.
A company shall not deny service, deny access or otherwise discriminate 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 ar status with regard to
public assistance. Each company shall comply at all times with a11 other requirements of federal,
state and local laws and regulations, and all executive and administrative orders relaring to
nondiscrimination which are hereby incorporated and made a part of this chapter by reference.
Sec. 430.042. Equal opportunity employment.
Each company shall strictly adhere to the equal employment opportunity requirements of
the federal government as well as state and local laws and regularions and shall keep a recard of
employment statistics which sha11 be available for public inspection during normal business
hours.
Sec. 430.043. Subscriber privacy.
No signals, including signals of an interactive communications channel, shall be
transmitted from a subscriber ternunal for purposes of monitoring individual viewing patterns or
practices without the express written permission of the subscriber. Neither a company, the city
nor any other person shall initiate or use any procedure or device for procuring information or
data from a subscriber's terminals or ternunai by any means without the prior valid authorization
of the affected subscriber. "Valid authorization" sha11 mean written approval from the subscriber
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which shall not have been obtained from the subscriber as a condiUon of service, except in those
situations in which authorization is needed for billing, and which may be revoked by the
subscriber at any time without penalty of any ldnd whatsoever. The reguest for such pernussion
shall be contained in a separate document with a prominent statement that the subscriber is
authorizing the permission with full knowledge of its provisions. Such written permission shall
not extend longer than one (1) yeaz; provided, that the subscriber sha11 have the option to renew
upon expiration. No penalty shall be invoked for a subscriber's failure to provide or renew such
authorization. Such authorization shall be required for each type or classification of signals
transmitted from a subscriber ternunal.
(Ord. No. 17364, § 11, 6-17-86)
Sec. 43�.044. Prohibit compilation of subscriber lists for sale.
A company shall not collect, compile or retain subscriber data except as necessary for
internal business purposes. Neither a company, the city nor any of their agents or employees
shall, without the specific written authorization of the affected subscriber, provide data
identifying or designating any subscriber to any party other than to the company and its
employees or agents for internal business use. This shall include, but not be limited to, lists of the
names and addresses of such subscribers or any lists that identify the viewing habits of
subscribers. Written pernussion from the subscriber shall not be required for the systems
conducting systemwide or individually addressed electronic sweeps for the purpose of verifying
system integrity or monitoring for the purpose of billing. Confidenriality of such information
shall be subject to the provisions of this section.
(Ord. No. 17364, § 12, 6-17-86)
Sec. 430.045. Monitoring prohibited.
Neither a company, the city nor any of their agents shall tap or monitor, arrange far the
tapping ar monitoring of, or permit any other person to tap or monitor any cable, line, signal,
input device or subscriber outlet ar receiver for any purpose whatsoever without the prior valid
authorization of the affected subscriber.
ARTICLE V. 430.05. FRANCHISE FEE
Sec. 430.051. Payment.
(a) Each company sha11 pay to the city a franchise fee of five (5) percent of gross
revenues . Each franchise shall permit the City to increase the franchise fee to the m�imum that
may be chazged consistent with state and federal law, should the federallaw limit change or be
eliminated. However, the city shall not increase the franchise fee charged to a company except
after providing that company 90 days advance written notice, and providing that company the
opportunity to comment on the proposed change within that 90-day period. Payments sha11 be
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made on a quarterly basis. The installment payment for each quarter shall be due no later tkan
forly-five (45) days after expuation of the quarter when due and sha11 be made to the city
department of tecl�nology and management services, or such other department as the ciry may
designate. A franchise may exclude bad debt from gross revenues.
(b) A franchise may provide for advance payment of franchise fees. The city shall use all
advance franchise fees only for cable-related purposes. All other franchise fees collected by the
city shall be utilized primarily to support the city's administration of the francluse ordinance and
the plamiing and development of cable services and secondarily for deposit in the general fund or
for other such uses as specified by the caTy.
(Ord. No. 17364, § 13, 6-17-86; C.F. No. 92-1374, § 32, 9-22-92; C.F. No. 97-53, § 19,
2-12-97)
(c) The franchise fee payment is not a payment in lieu of any tas, fee or other
assessment except as specifically provided in a franchise, or as required by applicable law.
ARTICLE VI. 430.06. RATES AND RATE ADNSTMENT
Sec. 430.061. Rates.
(a) On or within five days of the effective date of its franchise (or any renewal or
replacement thereofl, a company sha11 place in a public file for inspection on and submit to the
city a list of all rates and charges chazged within the City (including late fees), which listing shall
be updated when any rate or ctiarge is changed, added or eliminated. Where a list of all the
current rates and charges of the operator aze already on file as of the effective date of a renewal
or replacement franchise, that list shall be deemed to satisfy the obligation to provide a list within
five days of the effective date of the franchise.
(b) Every xate or chazge shall be subject to regulation by the city, except as prohibited
by state or federal law.
(c) In cases where regulation of a rate or chazge is permitted but governed by state or
federal law, the city stiall regulate in wnformity with the applicable law and regulations. The
cable communications officer shall have the authority to issue any order, regulation or fmding
permitted or required by those applicable regulations including any subsequent amendments,
other than a rate order establishing rates or ordering refunds, which orders shall be issued by the
City Council.
(d) Residential subscriber contracts, if any, may not exceed twelve (12) months
unless after twelve (12) months in the contract may be terminated without penalty at the option
of the subscriber.
(Ord. No. 17364, § 14, 6-17-86; C.F. No. 93-1829, § 2, 3-30-94)
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Sec. 430.062. Request for rate adjustment.
For azeas in which state and federal law pemut rate and chazge regulation by the city,
company may make application for a revision of the rate schedule at any time.
(Ord. No. 17364, § 15, 6-17-86; C.F. No. 93-1829, § 2, 3�0-94)
Sec. 430.063. Procedure for rate adjustment and hearing.
To the ea�tent that the procedure for regulation of a rate or chazge is not governed by
federal or state regulations, the procedure set forth in this section shall apply.
(a) An application for change in a rate or charge, or approval of a schedule or rates
and charges sha11 be filed in accordance with procedures established in this
section. The application shall be supported by statistical and other proof
indicating that the existing rate is inadequate and unreasonable and that the
proposed changes therein are required to enable the company to render service to
fulfill its obligations under this chapter and to derive a reasonable pmfit
therefrom. The application shall also include a statement of facts, opinions,
substantiating documents and exhibits supporting the change requested.
Notwithstanding the above, the specification of procedures in this ordinance does
not prohibit the city and a company from agreeing to a different procedure for
reviewing a particular rate.
(b) The company's petition for a rate change sha11 include the following fmancial
reports which sha11 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 peneh�ation.
(c) The company shall answer a11 city requests for information.
(d) The company's accounting records applicable to the cable system sha11 be
auailable 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 prorated to the Saint Paul operation. The documents
listed above shall include sufficient detail and/or footnotes as may be necessary to
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provide the city with the information needed to make accurate detenniiiations as
to the financial condition of the system. All financial statements shall be certified
as accurate by an officer of the company. The company shall beaz the burden of
demonstrating the justness, reasonableness and accuracy of the costs.
(e) The City may investigate any rate or chazge of the company at any time except as
state or federal law otherwise provides, and may require the company to }ustify
any rate subject to investigation. If, after investigating the rate, the City
determines the rate is not just and reasonable, it may establish the appropriate rate.
The City may order refunds of excess amounts collected from subscribers. .
( fl The council shall consider the following factors in approving or disapproving a
rate or charge, and may consider such other factors relevant to the establishment
of a rate:
(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 costs incurred by the company;
(6) The original cost of the system less depreciation;
(7) 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;
(8) The extent to which the company has adhered to the terms of this
agreement;
(9) Fairness to city residents, subscribers and users;
(10) Capital expenditures by the company in providing updated technology and
services to subscribers; and
(11) Such other factors as council is required to consider.
(g) The council will not consider any valuation based upon the franchise right or the
company's goodwill. Neither the value of the francluse nor the value of the
�'F'.
98-Z 7 7
company's goodwili shali be amortized as an expense nor shall a return be paid on
them. Furthermore, the council will not consider any rate change application
based, in whole or in part, on increased cable system value due to any type of
transfer or sale.
(h) Upon receipt of a request for changes in rates under ttus secrion, the city shall
haue thirty (30) days within wluch to determine whether it wishes to review more
fully the request for changes. In the event that the city takes no action within
thirty (30) days, the company may file in the office of the city clerk and the office
of cable communications a new or amended rates schedule which shall be
effective and may be chazged on the tenth day (or such later date that the company
shall designate on its filing) after its filing and shall continue in effect until
approved or denied by resolution or until deemed approved consistent with the
charter.
(Ord. No. 17364, § 16, 6-17-86; C.R No. 93-1829, § 2, 3-30-94)
ARTICLE VII. 430.07. APPLICATIONS PROCEDURE
Sec. 430.071. ModiTcation of franchise obligation.
(a) Procedure. Following the adoption and acceptance of the franchise and except as
otherwise specifically provided herein or in the franchise ordinance, all applications by a
company for a modification of franchise obligations shall be made and processed in accordance
with the following procedure to the extent that this procedure is not superseded by federal law:
(1) If a company seeks such a modification, it shall file an application for
modification of franchise obligations in the offices of cable communications and
of the city clerk.
(2) The city clerk shall place the application upon the next auailable city councii
agenda.
(3) Using the standards set forth in pazagraph (b) of this section, the council shall
approve or deny the requested modifications within one hundred twenty (120)
days of the filing of said application. Such one-hundred-twenty-day period may be
extended by mutual agreement of the company and the city.
(b) Standards:
(1) During the period a franchise is in effect, a company may obtain from the city
modifications of the requirements in its franchise:
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a. In the case of any requirement for facilities or equipment, including
public, educational or governmental access facilities or equipment, if the
company demonstrates that:
1. It is commercially impracticable for the company to comply with
such requirement; and
2. The proposal by the company for modification of such requirement
is appropriate because of commercial impracticability; or
b. In the case of any such requirement for services, if the company
demonstrates that the mix, quality and level of services required by the
franchise at the rime it was granted wili be maintained after such
modification.
(2) A company may not obtain modification under this section of any requirement for
services relating to public, educational or governmental access.
(3) For purposes of this secfion, the term "commercially impracticable" means, with
respect to any requirement appiicabie to a company, that it is commercially
impracticable for company to comply with such requirement as a result of a
change in conditions which is beyond the control of company and the
nonoccurrence of which was a basic assumption on which the requirement was
based.
(4) Notwithstanding subsection (1), a company may, upon thirry (30) days' advance
notice to the city, rearrange, replace or remove a particular cable service required
by the franchise if:
a. Such service is no longer available to company; or
b. Such service is available to company only upon the payment of a royalty
required under Section 801(b)(2) of Title 17, United States Code which
company can document:
1. Is substantially in excess of the amount of such payment required
on the date of the company's offer to provide such service; and
2. Has not been specifically compensated for through a rate increase
or other adyustment;
(5) Notwithstanding subsection (1), a company may take such actions to rearrange a
particulaz service from one (1) service tier to another, or otherwise offer the
service, if the rates for all of the service tiers involved in such actions aze not
subject to regulation under the Cable Act.
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(Ord. No. 17364, § 17, 6-17-86; C.F. No. 93-1829, § 4, 3-30-94)
ARTICLE VIII. 430.08. TERMINATION t1ND T'RANSFER OF FRANCHISE
Sec. 430.081. Termination and forfeiture.
(a) Termination, substantial breach of terms and conditions. In addition to ail other rights
and powers retained by the city under the franchise, this chapter or otherwise, the city reserves
the right to forfeit and terminate a franchise and all rights and privileges of a company thereunder
in the event of a substantial breach of its terms and conditions. A substantial breach by a
company sha11 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 determination of the city made pursuant to the franchise or this
ordinance;
(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 practice any fraud or
deceit upon the city or its subscribers or customers;
(4) Failure to begin or complete system construcrion 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 applicaUon far or negotiation of the
franchise;
(8) Failure to replenish the fund secured by a letter of credit within thirty (30) days
after final draw by city; and
(9) Failure to maintain bonds and/or insurance.
(b) No fault of company. The foregoing shall not constitute a major breach if the violation
occurs but it is without fault of a company or occurs as a result of circumstances beyond its
reasonable controL Circumstances beyond the control of a company shall include, but not be
lunited to, acts of God; strikes, lockouts ar other labor disturbances; unavailability of labor or
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materials; failure of other utilities to perform walkout and make ready and to locate underground
ufilities in a timely manner; orders or restraints of any kind of the govemment of the United
States or the State of Minnesota or their respective departments, agencies or officials or any civil
or military authoriry; insurrections, riots; landslides, earthquakes, fires, storms, droughts, floods;
explosions; breakage or accident to machinery, transmission pipes or canals; or any other cause
or event not reasonably witivn the control of company and not proximately caused by its
negligence. A company sha11 not be excused by mere economic hardship, nor by misfeasance or
malfeasance of its directors, officers or employees.
(c) Demand for compZiance, notice of intent to request termination.
(1) In the event that the city determines that a company has substantially violated any
provision of its franchise, any rule or regulation promulgated pursuant to that franchise or this
chapter or any applicable federal, state or locallaw, the city shall make a written demand, by
registered mail, return receipt requested, upon that company that it remedy such violation and
that continued violations may be cause for termination. The city shall give a company thirry (30)
days after service of the aforementioned notice to correct the violation, except as otherwise
provided in this section 430.081(c)(4).
(2) Within that thirry-day period, the company must either cure the violation, ar
provide satisfactory written proof that a cure cannot be completed within the thiriy-day period,
but that the cure is being actively and expeditiously pursued, and will be completed within a time
certain. If the violation, breach, failure, refusal or neglect is not fully cured within that thirty
(30) day period following written demand; ar if there is not written proof satisfactory to the city
that corrective action has been taken or is being actively and expeditiously pursued so that the
cure will be completed by a time satisfactory to the city; ar if the city provides the company
additional time to cure and the company fails to cure within a time satisfactory to the city; the
city may place the issue of termination of the franchise before the city council.
(3) If the city chooses to place the issue of termination before the city council, a
public hearing shall be held and the company sha11 be provided with an opportunity to be heard
upon written notice, by registered mail, retum receipt requested, to the company of the cause for
termination, the intent to terminate and the time and place of said public heazing.
(4) The city council shall heaz and consider the issue and shall hear any
person interested therein, and sha11 determine, in its discretion, whether or not any violation by
the company has occurred. If the council deternunes that the violation by the company was
within its control, and that the company has failed to complete cure the violation, the council
may, by resolution, declare that the company's franchise be forfeited and terminated. Nothing
herein prevents the city from providing the company with additional opporhxnities to cure. The
city is not required to give the company any opportunity to cure where fraud and/or
misrepresentation has been alleged and proved to the city's sarisfaction.
(d) Franchise procedures. In addition, a franchise or other agreement with a company
may set forth grounds and procedures by which a franchise may be revoked, and the city may
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revoke a franchise foilowing such procedures, and shall not be required to also follow the
procedures specified above.
(e) Judicial proceeding. In the event the city council terminates the franchise pursuant to
tius section, the company sha11 have any applicable statutory period after receiving notice of
termivarion in which to commence an action, but no more than one hundred twenty (120) days.
During such period and until a court of competent jurisdiction has decided the matter and the
time for appeal has elapsed, the franchise shall remain in full force and effect unless sooner
terminated or expired and not renewed in accordance with law.
(Ord. No. 17364, § 18, 6-17-86)
Sec. 430.082. Franchise renewal.
(a) To the extent required by federal law, requests far cable franchise renewal under
the Cable Act will be received and reviewed in a manner consistent with Section 626 of the
Cable Act, 47 U.S.C. §546.
(b) If neither a Franchisee nor the City activates in a timely manner, ar can activate
the renewal process set forth in 47 U.S.C. §546(a)-(g) (including, for example, the provisions are
repealed), and except as to applications submitted pursuant to 47 U.S.C. §546(h), a renewal
request shall be submitted and evaluated using the same criteria as any other request for a
franchise, or as required by applicable law.
(c) The city may by resolution adopt procedures for conducting any proceedings
required under federal law, including without limitation, procedures for presentation of evidence;
and may also by resolution specify the person or entity that will conduct any administrative
hearing that may be required by federal law, should the city decide that it does not wish to
conduct the proceeding itsel£ In any case, however, the final decision to deny or grant renewal
shall remain with the city.
(d) Informal application for renewal. Nohuithstanding the above, a company may
submit a proposal for renewal of a Franchise pursuant to 47 U.S.C. § 546(h). Such a proposal
may be submitted at any rime and the City may, after affording the public adequate norice and
opportunity for comment, grant or deny such proposal at any time (including after proceedings
haue been commenced in accordance with 47 U.S.C. §546(a)).
Sec. 430.083. Right of municipal acquisition.
(a) Every franchise shall provide for the right of municipal acquisifion, consistent with
this Section 430.083.
(b) Right offzrst refusal; value. In the event a company forfeits its franchise, or upon
revocation or other ternunation of the franchise pursuant to provisions of this chapter or the
franchise ordinance, or at the normal expiration of the franchise term, city shall have the right of
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first refusal, directly or as an intermediary, to purchase the franchised cable system. The city
may, if it chooses, acquire the cable system and its assets and transfer the system and all its assets
to a third pariy purchaser; without limitarion, the city may enter into such a purchase agreement
before acquiring the cable system and its assets from the company.
If the city elects to purchase a system at the normal expiration of the franchise term, the
value of the franchise term shall be the fair mazket vatue as an ongoing business concern of that
system as detenniued by a panel of three (3) independent appraisers agreed upon by the city and
the company. Should city and a company fail to agree upon the selection of three (3) independent
appraisers, each sha11 select one (1) appraiser. The two (2) appraisers so selected shall then select
a third. If the city elects to purchase the system in the event of forfeiture, termination or
revocation prior to the normal expiration date, the purchase price to be paid by the city shail be
the company's capitalization cost less depreciation. "Capitalization cost" shall mean the monies
invested for tangible assets, exclusive of intangible assets such as goodwill or value of the
franchise. The date of valuation shall be no earlier than the day following the date of such
forfeiture, termination or revocation.
(c) Transfer to city. 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 a company, the company shall
immediately transfer to the city possession and title to all facilities and property, real and
personal, of the cable 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.
(d) Arbitration. A franchise may provide that, in the event city and company cannot agree
upon the value of cable system, either may give notice of a demand to the other for azbitration.
Arbitration sha11 commence and proceed according to law and shall be governed by section
430.035.
(e) Notwithstanding the above, if a cable system or any part of a cable system is
abandoned by a company during the franchise term, or if a company fails to operate its cable
system in accordance with its franchise during any rime it is required to operate its cable system,
or a company otYaerwise terminates its franchise, upon reasonable notice of at least thirty (30)
days and an opportunity to be heard, the ownership of the cable system or the abandoned
portions thereof (as applicable) in streets or on other public property, or such portion thereof as
the City may desire, shall be conveyed to the city and the city may sell, assign, or transfer all or
part of the assets of the cable system, or the city council, at its oprion, may use or dispose of the
system as it sees fit. The affected company shall execute such quit claim deeds and other
documents as may be necessary to transfer the cable system or affected part thereof free and cieaz
of liens and encumbrances to the city.
( fl Each contract entered into by a company with reference to its cable system or
operations under its franchise sha11 be subject to the exercise of the rights of the city under this
section 430.083.
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(g) Nothing in this ordinance or ui any respect affects the city's powers of eminent
domain, or its right to exercise these powers with respect to a cable system.
(h) A company may not take any action, other than the assertion of the company's legal
rights hereunder, that would interfere with the city's purchase rights hereunder, or take action that
would have the effect of limiting the facilities and equipment available to the city hereunder.
(i) By the acceptauce of a franchise, each company expressly waive its rights, if any, to
relocation costs that might otherwise be provided by law.
(Ord. No. 17364, § 20, 6-17-86)
Sec. 430.084. Foreclosure and receivership.
(a) Upon the foreclosure or other judicial sale of all or a substantial part of its cable
system, or upon the termination of any lease covering all or a substantial part of the cable system,
a company shall norify 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 the
franchise governing the consent of the city council to such change in control of the company
shall apply.
(b) 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, bankiuptcy or other action or proceeding,
unless such receivership or trusteeship sha11 have been vacated prior to the expiration of said one
hundred twenTy (120) days, or unless:
(1) Within one hundred twenty (120) days after his election or appointment, such
receiver or trustee shall have fu11y complied with all the provisions of this chapter
and remedied all defaults thereunder; and
(2) Such receiver or trustee, within said one hundred twenty (120) days, sha11 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
each and every provision of this chapter and the franchise granted to the company.
Sec. 430.085. Abandonment or transfer.
(a) Abandonment. Notwithstanding and without limiting the provisions of its franchise, a
company sha11 not abandon any cable communication service or any portion thereof, without
having given tlu�ee (3) months' prior written notice to the city. A company shall not abandon any
cable communicafion service or any portion thereof without compensating the city for actual
damages resulting to it from such abandonment. For purposes of this section, "service" shall
mean the aggregate cable system. A company shall not abandon its system, or any portion
thereof without the permission of the city and without compensating the city for actual damage
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resulting to it from such abandonment.
(b) Transfer:
(1) A francluse shall not be assigned or transferred, either in whole or in part, or
leased, sublet or mortgaged in any manner, whether by sale of assets or transfer of control of the
company or its parents, or otherwise, 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, which sha11 not unreasonably be withheld, and in compliance with applicable state
rules; provided, however, that no authorization of the council sha11 be required for any mortgage,
pledge or other encumbrance of this franchise ordinance or a company's cable system as security
for financing purposes, but the mortgage, pledge or other encumbrance may not allow any person
to succeed to the company's interest in the franchise or the system without the prior approval of
the city; and the terms and conditions of the mortgage, pledge or other encumbrance must be
subordinate to the terms and conditions of its franchise.
(2) A company shail 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, or any other event
constituting a transfer of the franchise, and shall file a request for approval of the transfer as
provided herein, containing such information as is required therein. 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. Without limiting the foregoing, a ten
percent (10%) change or more in the ownership of company shall be presumed to be a change in
control. Every change, transfer or acquisirion of control of the company shall make the
franchise subject to cancellation unless and until the council shall have consented thereto, which
consent will not be unreasonably withheld.
(c) The acts described in 430.085(b)(1)-(2) are collectively referred to as "transfers," and
the entity or entities to whom transfer is to be made is referred to below as the "transferee."
(d)For the purpose of deternuning whether it shall consent to such change, transfer or
acquisition of control, except as federai law prohibits it from doing so the city may inquire into
the qualifications of the prospective controlling party, and a company shall assist the council in
any such inquiry. The proposed assignee must show fmancial responsibility as determined by the
city and must agree to comply with all provisions of the franchise. A request for a transfer wiil
not be granted unless, in light of the record before it, including the transfer application, the
council determines that:
(1) there will be no adverse effect on the public interest, or the city's interest in the
franchise or franchise;
(2} the transferee will agree to be bound by all the conditions of the franchise and to
assume all the obligarions of its predecessor; and
(3) any outstanding compliance and compensa6on issues have been resolved or
preserved to the satisfaction of the city.
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(i) Any proposed transferee sha11 execute an agreement, in such form as is acceptable to the
city attorney, that it will assume and be bound by a11 of the provisions, terms and conditions of this chapter,
the franchise and amendments or agreements related thereto, and comply with any other conditions
lawfully imposed upon the transfer.
(e) The consent or approval of the city 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 sha11, by its
terms, be expressly subordinate to the terms and conditions of the franchise and any amenduaents
or agreements related thereto.
( fl In the absence of extraordinary circumstances, the city will not approve any transfer
or assignment of the franchise prior to substantial completion of any system conshucfion
required by a franchise.
(g) In no event sha11 a transfer of ownership or control be approved without successor in
interest becoming a signatory to the franchise agreement, and any amendments or agreements
related thereto.
(h) An application for approval of a transfer sha11 be filed with the cable
communications officer at least 120 days prior to the date the transaction is scheduled to close or
otherwise become effective. Each application sha11 contain the following information.
Additional information will be provided upon request. An application that does not contain the
information shall be considered an incomplete application, and need not be acted upon by the
city:
(1) all information and forms required under federal law or the equivalent of such
forms if no longer required by federal law;
(2) any shareholder reports or public filings which have been filed with the Securities
and Exchange Commission that discuss the transaction;
(3) the effect of the transfer on system debt and any valuatlon of the system assets
pre- and post-transfer, unless disclosure wouid result in a violation of federal law ;
and
(4) a brief summary of the proposed transferee's planned changes for at least the nea�t
five (5) years regarding line extension, plant and equipment upgrades, channel
capacity, expansion or elimination of services, and any other changes affecting or
evhancing the performance of the cable system.
(Ord. No. 17364, § 21, 6-17-86; C.F. No. 92-1374, § 33, 9-22-92)
Sec. 430.086. Removal of cable equipment upon termination or forfeiture.
(a) Removal. Upon termination or forfeiture of a franchise, a company shail remove its
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cable system from the streets, alleys and other public places withiu the franchise area if the city
so requests in writing. Such request shall be served upon the company's tocal business by
registered mail, return receipt requested, and shall give the company a reasonable period of time
to effectuate such removal. The city may require the company to submit a plan for removal by a
date certain, and require a company to comply with that plan and such other conditions as the
city may reasonably establish to protect the streets and public and private properry, or to protect
the city's rights under a franchise. A company shall restore streets and other public property
disturbed by the removal of its cable sysTem to at least as good a condition as e�sted
immediately prior to removal.
(b) Failure to remove. Should a company fail to remove the aforementioned equipment as
requested by the city, the city shall have the right to make such removal at the expense of the
company and the company sha11, upon written demand, pay to the city the cost of such work
done or performed by the city.
(Ord. No. 17364, § 22, 6-17-86)
/:\:71Y��1��IL��CZIxIl'���I�' : ' : �]if(.y[�7�69
Sec. 430.091. 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 service,
cable installation or maintenance from a cable company regulated by and lawfully operating
under a valid and existing cable franchise issued by the City of Saint Paul.
Sec. 430.092. Gratuities and payments to permit service prohibited.
Neither the owner of any multiple-unit residential dwelling nor his agent ar representative
shall ask, demand or receive any payment, service or gratuity in any form as a condition for
permitting or cooperating with the installation of a cable service to the dwelling unit occupied by
a tenant or resident requesfing service.
Sec. 430.093. Penalties and charges to tenants for service prohibited.
Neither the owner of any multiple-unit residential dwelling nor his agent or representative
shall penalize, chazge or surchazge 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 service from a company operating under a valid and existing cable franchise
issued by the City of Saint Paul.
Sec. 430.094. Reselling service prohibited.
No person shall resell, without the expressed, written consent of both the company and
25
9�- Z 7 �
the city, any cable service, prograui or signai transmitted by a cable communication company
operating under a francluse issued by the City of Saint Paul.
Sec. 430.095. Theft of services prohibited.
No person shall establish a drop for receprion of services or receive cable services
without first obtaining the approval of the company.
Sec. 430.096. Protecfion of property.
Nothing in these general provisions shall prohibit a person from requiring that cable
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.
C:�Iy Documents�St. Paul\ORD430 revised6.doc+
26
Attachment A 9��Z7'z
. 9� �
Minnesota Statutes Display Docu�aent 12 of:41 � Page 1 of 5
Chapter Title: CABLE COMMiINICAT'IONS
Section: 238.084
Text:
238.084 Required contents of franchise ordinance.
Subdivision 1. All systems. The following
requirements apply to all classes A, B, and C systems unless
provided otherwise:
(a) a provision that the franchise complies with the
Minnesota £ranchise standards contained in this section;
(b) a provision requiring the franchisee and the
franchising authority to con£orm to state laws and rules
regarding cable communications not later than one year after
they become effective, unless otherwise stated, and to conform
to federal laws and regulations regarding cable as they become
e£fective;
(c) a provision limiting the initial and renewal franchise
term to not more than 15 years each;
(d) a provision specifying that the franchise is
nonexclusive;
(e) a provision prohibitinq sale or txansfer of the
franchise or sale or transfer of stock so as to create a new
controlling interest under section 238.083, except at the
approval of the £ranchising authority, which approval must not
be unreasonably withheld, and that the sale or transfer is
completed pursuant to section 238.083;
(f) a provision granting the franchisinq authority
collecting a franchise fee the authority to audit the
franchisee's accounting and financial records upon reasonable
notice, and requiring that the franchisee file with the
franchising authority annually reports o£ gross subscriber
revenues and other information as the franchising authority
deems appropriate;
�g) provisions specifyinq:
(1) current subscriber charges or that the current charges
are available £or public inspection in the municipality;
(2) the length and terms of residential subscriber
contxacts, if they exist, or that the cusxent length and terms
of residential subscriber contracts are available for public
inspection in the municipality; and
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Minnesota Statutes 1997 Display Document 12 of 41
Minnesota Statutes Display Document 12 of 41
(3) the pzocedure by which subscxiber charges are
established, unless such a provision is contrary to state or
federal law;
(h) a provision indicating by title the o£fice or officer
of the franchising authority that is responsible for the
continuing administration of the franchise;
(i} a provision xequizing the fxanchisee to indemni£y and
hold harmless the franchising authority during the term of the
franchise, and to maintain throughout the term of the franchise,
liability insurance in an amount as the franchising authosity
may require insurinq both the franchising authority and the
franchisee with regard to damages and penalties which they may
leqally be required to pay as a result of the exercise of the
£ranchise;
(j) a provision that at the time the franchise becomes
effective and thereafter until the franchisee has liquidated all
of its obligation with the franchising authority, the franchisee
shall furnish a performance bond, certificate of deposit, or
other type of instrument approved by the franchising authority
in an amount as the franchising authority deems to be adequate
compensation for damages resulting from the franchisee's
nonperformance. The franchising authority may, from year to
year and in its sole discretion, reduce the amount of the
performance bond or instrument;
(k) a provision that nothing contained in the franchise
relieves a person from liability arising out of the £ailure to
exercise reasonable care to avoid injurinq the franchisee's
facilities while performing work connected with gradinq,
regrading, or changing the line of a street or public place or
with the construction or reconstruction of a sewer or water
system;
(1) a provision that the franchisee's technical ability,
financial condition, and legal qualification were considered and
approved by the franchising authority in a£u11 public
proceeding that afforded reasonable notice and a reasonable
opportunity to be heard;
(m) a provision requiring the construction of a cable
system with a channel capacity available Por immediate or
potential use, equal to a minimum of 72 MHz of bandwidth, the
equivalent of 12 television broadcast channels. For purposes of
this section, a cable system with a channel capacity, available
for immediate or potential use, equal to a minimum of 72 MHz of
bandwidth means: the provision of a distribution system
designed and constructed so that a minimum of 72 MHz of
bandwidth, the equivalent of 12 television broadcast channels,
can be put into use with only the addition of the appropxiate
headend equipment;
(n) a provision in initial franchises that there be a full
description of the system proposed for construction and a
schedule showing:
(1) that for franchise areas which will be served by a
system proposed to have fewer than 100 plant miles of cable:
(i) that within 90 days oP the granting of the franchise,
the franchisee shall apply for the necessary governmental
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Minnesota Statutes Display Document 12 of 41
permits, licenses, certificates, and authorizations;
(ii) that energized trunk cable must be extended
substantially throughout the authorized area within one year
after receipt of the necessary governmental permits, licenses,
certificates, and authorizations and that persons alonq the
route o£ the enexgized cable will have individual "diops" as
desired during the same period of time; and
(iii) that the requirement of this section may be waived by
the franchising authority only upon occurrence of unforeseen
events or acts of God; or
i2) that for franchise areas which will be served by e
system proposed to have 100 plant miles of cable or more,
provision:
(i) that within 90 days o£ the granting of the franchise,
the franchisee shall apply for the necessary governmental
permits, licenses, certificates, and authorizations;
(ii) that engineering and design must be completed within
one year after the granting of the franchise and that a
significant amount o£ construction must be completed within one
year after the franchisee's receipt of the necessary
governmental permits, licenses, certificates, and
authorizations;
(iii) that energized trunk cable must be extended
substantially throughout the authorized area within five years
after commencement of construction and that persons along the
route of the energized cable will have individual "drops" within
the same period of time, if clesired; and
(iv) that the requirement of this section be waived by the
franchising authority only upon occurrence of unforeseen events
or acts of God;
(o) unless otherwise already provided for by local 1aw, a
provision that the franchisee shall obtain a permit from the
proper municipal autriority before commencing construction of a
cable communications system, including the opening or
distuxbance of a street, sidewalk, driveway, or public place.
The provision must specify remedies available to the franchising
authority in cases where the franchisee fails to meet the
conditions of the permit;
(p) unless otherwise already provided for by local law, a
provision that wires, conduits, cable, and other property and
facilities of the franchisee be located, constructed, installed,
and maintained in compliance with applicable codes. The
provision must also specify that the franchisee keep and
maintain its pxoperty so as not to unnecessarily interfere with
the usual and customary trade, traffic, or travel upon the
streets and public places of the franchise area or endanger the
liPe or property of any person;
(q) unless otherwise already provided for by local law, a
provision that the franchising authority and the £ranchisee
shall establish a proceduxe in the franchise for the relocation
or removal of the £ranchisee's wires, conduits, cables, and
other property located in the street, right-of-way, or public
place whenever the franchisinq authority undertakes public
improvements which affect the cable equipment;
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Minnesota Statutes Display Document 12 of 41
(r) a provision incorporating by reference as a minimum the
technical standards promulgated by the Federal Communications
Commission relating to cable communications systems contained in
subpart K o£ part 76 of the Federal Communications Commission's
rules and regulations relating to cable communications systems
and found in Code of Federal Regulations, title 47, sections
76.601 to 76.617. The results of tests required by the Federal
Communications Commission must be filed within ten days of the
conduct of the tests with the £ranchising authority;
(s) a provision establishing how the franchising authority
and the cable communications company shall determine who is to
bear the costs of required special testing;
(t) a provision pertaining to the franchisee's construction
and maintenance of a cable communications system having the
technical capacity for nonvoice return communications which, for
purposes of this section, means the provision of appropriate
system design techniques with the installation o£ cable and
amplifiers suitable for the subsequent insertion of necessary
nonvoice communications electronic modules.
In cases where an initial franchise is granted, the
franchisee shall provide a cable communications system having
the technical capacity for nonvoice return communications.
When a franchise is renewed, sold, or txansferred and is
served by a system that does not have the technical capacity for
nonvoice return communications, the franchising authority shall
determine when and if the technical capacity for nonvoice return
communications is needed after appropriate public proceedings at
the municipal level giving reasonable notice and a reasonable
opportunity to be heard;
(u) a provision stating that no signals of a class IV cable
communications channel may be transmitted from a subscriber
terminal for purposes of monitoring individual viewing patterns
or practices without the express written permission of the
subscriber. The request for permission must be contained in a
separate document with a prominent statement that the subscriber
is authorizing the permission in full knowledge of its
provisions. The written permission must be for a limited period
of time not to exceed one year which is renewable at the option
of the subscriber. No penalty may be invoked for a subscriber's
failure to provide or renew the authorization. The
authorization is revocable at any time by the subscriber without
penalty of any kind. The permission must be required for each
type or classification of class IV cable communications activity
planned £or the purpose;
(1) No information or data obtained by monitoring
transmission of a signal from a subscriber terminal, including
but not limited to lists of the names and addresses o£ the
subscribers or lists that identify the viewing habits of
subscribers, may be sold or otherwise made available to any
party other than to the company and its employees for internal
business use, or to the subscriber who is the subject of that
information, unless the company has received specific written
authorization £rom the subscriber to make the data available;
(2) Written permission from the subscriber must not be
required for the systems conducting systemwide or individually
addressed electronic sweeps for the purpose of verifying system
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Minnesota Statutes Display Document 12 of 41
integrity or monitoring for the purpose of billing.
Confidentiality of this information is subject to clause (1);
(3) For purposes of this provision, a"class IV cable
communications channel" means a signaling path provided by a
cable communications system to transmit signals of any type from
a svbscriber terminal to another point in the communications
system;
(v) a provision specifying the procedure for the
investigation and resolution by the franchisee of complaints
regarding quality of service, equipment malfunction, billing
disputes, and other matters;
(�:) a provision requiring that at least a toll-free or
collect telephone number for the reception of complaints be
provided to the subscriber and that the £ranchisee maintain a
repair service capable of respondinq to subscriber complaints
requests for service within 24 hours after receipt of the
complaint or request. The provision must also state who will
bear the costs included in makinq these repairs, adjustments,
installations;
or
or
(x) a provision qranting the franchising authority the
right to terminate and oancel the £ranchise and the rights and
privileges of the franchise if the franchisee substantially
violates a provision of the franchise ordinance, attempts to
evade the provisions of the franchise ordinance, or practices
fraud or deceit upon the franchising authority.
The municipality sha11 pxovide the franchisee with a
written notice of the cause for termination and its intention to
terminate the franchise and shall allow the franchisee a minimum
of 30 days aftex service of the notice in which to cozrect the
violation.
The £ranchisee must be provided with an opportunity to be
heard at a public hearing before the governing body o£ the
municipality before the termination of the franchise;
(y) a provision that no cable communications company,
notwithstandinq any provision in a franchise, may abandon a
cable communications service or a portion of it without having
given three months prior written notice to the franchising
authority.
...More
� ° - � iJ�' � � „� ���'
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q 8� ��'i
Chapter 430. Cable Communicafions
Service'�
xEditor's note--This chapter is derived from Ord. No. 16661, adopted May 2�, 1980.
Cross reFerence(s)--Steam &anchise, App. A; gas francluse, App. B; el tric franchise,
App. C; district heating franchise, App. F; Energy Park Energy System franc 'se, App. G;
Continental Cablevision &anchise, App. H;�se�z�e�"a��ep�aee,����� Co� �xit�l-Cablev�sto�i
�anc`�se��?��=;. .m ._ , _ .
ARTICLE L 430.01. STATEMENT OF INTENT; DEF IONS; FRANCHISE
REQUIREMENT, TERMS AND CON TIONS*
�Editor's note--The numbers in the article titl of this chapter aze derived from the
numbers given to several sections in tlus chapter by� e city and have been retained herein at the
discretion of the editor for ease of reference by th ser.
Sec. 430.011. Statement of legislative findk gs, intent and purpose.
The council finds that the arc
Saint Paul will help ensure the most
at acceptable rates to the subscriber�
Sec. 430Al2. Definitions.
of cable communications within the City of
;tive distribution of qualiry cable communication service
reasonable return to the system operatars.
For the purpose of s chapter and any franchise granted subject to the conditions of this
chapter, the following te s, phrases, words and their derivations shall have the meaning given
herein. When not inco stent with the context, words used in the present tense include the
future, words in the p al number include the singular number, and words in the singular
number include the ural number. The wards "shall" and "will" are mandatory and "may" is
permissive. Word not defined sha11 be given their common and ordinary meaning. To the extent
' �� ��,���.ti_. ___.._..._._ __ a_�_...,._- -- __� herein conflict
§521et
Federal
Ac ;����, 47 U.S.C.
ions prescribed by the
the "FCC Rate Regulations") �'�"`�" � a��`
� �.
�'�w.�:� ��.k ���.,u::a ,��:-<, �.. � �u.�.��
COrili01.
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Aceess channels means those channels foi° "viaeo, v'Qic� or d°a2a ns8;dedicated by law, rule,
regulation or commitment of a�ke company to the ro�rams of the general
public, local government, educational ins6tutions or the leased use of commercial or
noncommercial entities for vid"e,o`; voice-or<Tata use.
Cable communications officer means that individu , official or employee of the city
chazged with the responsibility of administering the term' and conditions �e�"�,�x"��'� "'
�
��"�'��'�""' � °� ' � ' : � . �� of cable communications franchise.
Connection shall mean the attachment of the drop to the first radio or television set or to
xonic terminal device ar converter of the subscriber.
�
�,���`�"���
a c• .e . - eo e- e m �a s .e - a m t
q Y -a��1
sy"stetrr fr uencie5 fo sta�cxard titoadcasf fr uencies:
��., a�l ...... .. .....,� .., aT.. , _..., ti . . .... �l _ . ...
Cost of service regulation shali mean the method of determining rate increases contained
in this ordinance, as modified or superseded by the Gable Aact or fi�e-FCC Rate Regulations.
Council �s fhe, ct`�y couucil ofthe. City of Sairit Pattl:
��• . �. ., _
Drop shall mean the co�ial cable that connects the facility to the nearest feed cable of
the cable network.
aa s�s rs a', a •� - - e e� e, - - s e m �
°��:�.��.�°�� w.,���a,�-o���w-��L������'�������'�������e�i;��"�pa�
��
°.;����
FCC shall mean the Federal Communications Commission and any legally appointed,
designated or elected agent or successor.
Franchise shall mean �re grant of rights and privileges ���' �� ,���, �" '
° r�'��to construct and operate a cable communications system.-
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 fmancial interest from
or in connection with the operation of the ���� eatt�system�l�_�'�
+- m 9f. 9. 0" i 't a.a.e --'-�- -- ---
' -' - " -- --- - '-- -' "-'- --' - '.-' "-' -- ' "- - --' -- --' '- -- ' --
.
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. "- ' -
i d p e 8 / � k & . t " " 1 i� 8 - i' . e " � 0 m"
" _ _" _ " _ _ _ _ _ _ _ _ _ _ " __ __ _ _ _ _ _ _
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a�-a�t�t
iav�i��o��i�:i :�i�i:s:iiaii."' "�i:t:�nwiri�rw�iwiiw
Locat shall mean withiu the`City ofSaiut Paul:
�
�'�'�
Sec. 430.013. Franchise requirement.
°Ig'a��t
, .- . ,. ., . ,.- - . ,. ,. - ,- „ , , .- , ,
., - - , ,- . . , � ,. ., . ,. . ,.. - -. . .-
- -- - - - - - - --- - -=-- -- -- -- - - -
Sec. 430.014. Requirement for certificate of confirmation, state approval and
with all state and federal laws.
No person shall operate or cons�ylc�oi[participate in the �i
cable ea�ea�ierrsystem within the City of Saint Paul without
peration of a
auy certificate
or regulation.
Any cable communication system within the ciTy sha11 at times comply with all state
laws and rules regarding cable communications not later than o e(1) year after they become
effective unless otherwise stated and with a11 federal laws regularions regard'vng cable as they
• - .y�� .ctz �w��`"�.A'�rr`k+�'C . �„» _ , .�p v � R-,. .,..
become effective����� ' �� . ,._.. ... �?�a��
(Ord. No. 17364, § 2, 6-17-86)
Sec. 430.015. Franchise; terms and con ions.
(a) A nonexclusive � ten eaz franchise may be granted by ordinance to a����
'' to , onstruct and operate a system to serve the City of Saint Paul.
The provisions of this chapter s, 1 be incorporated by reference into the franchis���'��
�, . .. . .. .:� . .�� . ., _ ..�
a� ..��:,v. :>.:. m . �.; . �...
�.:���-�-��-�-�fi�..� e city
and ,� � agree to additional terms and conditions as may be deemed necessary"" .'
��"����• viding, that said terms and conditions aze consistent vv�th the provisions of this
chapter and p icable law � " "" � °' .' ° ° � "' �����° � ' ° �
,
� � _ � u � �. ��� , �� .��r. : „�
No franchise shall be awarded by the city which does not meet the minimum
requir ents set forth in Minnesota Statutes, Section 238.084, attached hereto as Appendix A
(Ord. No. 17364, § 3, 6-17-86)
�
y-a-��
qu•a��
Editor's note--The state statute, Secfion 238.084, refezred to in paragraph (b) of '
430.015 above, and attached as an Appendia� A to Ord. No. 17364, has not been set out herein,
but can be found on file for public inspection in the city clerk's office.
ARTICLE II. 430.02. OFFICE OF CABLE COMMUNICATIONS
Secs. 430.021, 430.022. Reserved.
Editor's note--C.F. No. 97-53, § 21, adopted Feb. 12, 1497, repealed
430.022, which pertained to establishment and of£ice functions, respectively
cable communications, which sections derived from Ord. No. 17364, §§ 4,
1986.
Sec. 430.023. Reserved.
Editor's note--Section 6 of Ord. No. 17364, adopted ` e 17, 1986, deleted § 430.023 in
its entirety. Prior to its deletion, § 430.023 pertained to the able communications commission of
the city, and was derived from Ord. No. 16661, adopted ay 29, 1980.
ARTICLE III. 430.03. ADMINIST TION AND REGULATION
Sec. 430.031. Rules and regulations.
(a) City may promulgate. In ad '�on to the inherent powers of the city to regulate and
control the franchise, and those pow s�expressly reserved by the city, or agreed to provided for
herein and within the franchise, th 'ght and power is hereby reserved by the city to promulgate
such additional reasonable regul i�ns as it shall fmd necessary in the exercise of its lawful
powers and in fiirtherance of t e erms and conditions of this chapter and the franchise.
(b) Request of com y. The ciry may also adopt such regulations at the request of �
0.021 and
the office of
adopted June 17,
company upon applicati to the city.
access
��
�ss channels, administration. The city reserves the right to deternune how the
will be administere `' . _ _ � ,;:. _
,..
�-. . �. _.: _. m
, . . ._ _ ...� �.� ., _ . �.�;� .
430.032. Public notice.
�
C '��:W
�/'�"y�
�� -a�'l
Public notice of any city public meeting relating to amendments to the franchise
ordinance, fi�nchtse:r`eiiew� performance evaluation sessions and hearings at which adverse
��_.. ,..
action may be taken agamst afi�te company pursuan�=nndei its franchise; - hall
be by publication in a local newspaper of general circulation at least fourteen (14) days prior to
the meeting, and posting at City Hall. Commencing on the tenth day prior to the meeting, the
company sha11 notify its subscribers of the meeting by announcement on at least two (2) el;
of its cable communication system between the hours of 7:00 p.m. and 9_00 pm., for (5)
consecutive days. Such announcement shall be made on the two (2) local
channels of highest viewership on which such announcement is feasible.
(Ord. No. 17364, § 7, 6-17-86)
Sec. 430.033. Performance evaluation sessions.
(a) i'valuation. The city eet�ne�-may
ea�n�ien-system performance evaluation sessio,�
. All such evaluation ��ions sha11 be open to the public.�
access
. ' . Notice of all
evaluation sessions shall be give ' accordance with the procedure set out in section 430.032.
{�) Topics of discus n. Topics which may be discussed at any scheduled or special
evaluation session may in de, but not ba limited to, service rate structures, franchise fee,
penalties, free or disco d services, application of new technologies, system performance,
services provided, pro �ng offered, customer complaints, privacy, amendments to this
chapter, judicial and C rulings, line estension policies, and company or city rules,
Cce) Addi�nal topics. Members of the general public may
topics
(�� ooperation with city. During a review and evaluation by city, ��# n,. �company shall
fully coo rate with city and shall provide such information and documents as city may request
to reas abl erform the review � t�����s��'�**'�'����'���-^��,�����
YP ��� . ,� ��- ,�.� .�. �
.;�„ .�°�-,� �-^�,��,�.,m,.. �^��a;���e��r; ��ru�,�,�:; �e�
(g) Tests and analyses. If at any time during its review the city council determines that
� �
7 ���
q��a�?
reasonable evidence e�sts of inadequate cable c��system perFormance, it may
require x:company to perform tests and analyses directed toward such suspected inadequacies at
the company's own expense. Eac1�`Company requued fo perform tests and analyses "shall ly
cooperate with city in pezforming suah teshng and shall prepaze results and a report, if re estec
within thirty (30) days after notice. Such report shall mclude the following informatio
(1) The nature of the compiaint or problem wiuch precipitated the spe al tests.
(2) What system component was tested. �
�
(3) The equipment used and procedures employed in testi g.'�
a
/ !
(4) The method, if any, in which such complaint or r,oblem was resolved.
(5) Any other information pertinent to said te�s,aiid analysis which may be required.
The council may require that tests be supervised, at o�pany's expense, by a professional
engineer not on the permanent staff of the comp y.�The engineer shall si� all records of special
tests and forward to the city such records wi / r�port interpreting the results of the tests and
recommending actions to be taken. �,/
1'
(�k) Tests, when required. Te�s re�4�'ired pursuant to this section �:; �shall only be
performed in response to specific catnplaihts or problems that give the city reason to believe that
such tests are necessary to protectffhe p{ against substandazd cable service.
Sec. 430.034. Complaints
(a) Loylal offr�e; telephone access; hours; requirements; records. During the term of the
franchise, a�id any thereof, �a'���company shaJl maintain within the city a local
business office � offices for the purpose of receiving and resolving all complaints regarding the
quality servkce, equipment malfunctions, billings disputes and similar matters. The office must
be reachable�y a local, toll-free telephone ca11, and'Tg�tk�comp� sha11 provide the city with
the �ame, fldress and telephone number of a person who will act as the company's agent to
re eive c�mplaints regazding quality of service, equipment malfunctions, billings and similar
�iatters�The local office shall be open to receive inquiries or complaints from subscribers during
no �1 business hours, and in no event less than 9:00 a.m. to 5:00 pm., Monday through Friday,
ex�uding legal holidays. Company shall provide the means to accept complaint calls twenty-four
(3,�4) hours a day, seven (7) days a week. Inquiries and complaint calls sha11 be accepted �
e�stia��'���'�i���"����;es �rpeFSen-between 8:00 a.m. and 10:06 p.m., seven (7) days a
�� �. �_ �
week. Any service complaints from subseribers shall be investigated and acted upon within
8 c </�L"�
y�a �a
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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 four hours within a twentv-four (24 hour neriod_ or for a loss
of service that exceeds forty-eight (48) hours within a thuty-day period, excent as otherwise may
be �rovided in the franchise. �'"a'e'�"�company shall keep a maintenance service log w'ch will
indicate the nature of each service complaint, the date and time it was received, the dis sition of
said complaint and the time and date thereof. This log shall be made available for p odic
inspection by city. ,
(b) Infarmafion concerning procedures, etc. As subscribers aze co.
to the system, the company shall, by appropriate means, such as a cazd or
information concerning the procedures for making inquiries or complain�
address and local telephone number of the employee or employees or e:
inquiries or complaints aze to be addressed, and furnish information nca
responsible for administration of the franchise with the address an- elepk
office. „'
Sec. 430.035. Arbitration of disputes.
(a) Demand for arbitration.
cannot resolve a dispute which arises as a result o;
the cable communication system and which is not
give nofice of a demand to the other for azbitratioT
(b) Procedures. �����i��'t�a'�
arbitration shall be pursuant to the prov.�
Statutes, Sections 572.08 through 5�23
of the notice of a demand, appoint (1) o
and not employed by or in any manne
each agree upon the selection of a,' d
(Ord. No. 17364, § 8, 6-17-86)
Sec. 430.036. Penalties.
disputes decided by
Act, Minnesota
0, xcepY the parties sha11 each, within fifteen (15) days
e arbitrator who is experienced in cable communications
af£liated with either city or company. Arbitrators shall
arbitrator, snnilarly qualified, within fifteen (15) days.
�� :. �ke-franc "se sha11 provide for the deposit of a letter of credit to insure faithfiil
performance by the co "pany. For the violation of any of the following provisions of the
franchise, penal'ties s all be chargeable to the letter of credit and �Eke company as follows:
(1) Fo�f �"ailure to complete system construction or upgrade in accordance with the
cb�istruction or u�grade plan provided in the franchise, unless the city council
�specifically approves the delay by motion or resolution, due to the occunence of
�
�
conditions beyond company's reasonable control, company may be fined as
follows:
�
ie ed or reconnected
chure, fiunish
including the name,
to whom such
ning the city office
ne number of the
i the event city and company
operation or management of
by section 430.036, either party may
�
�'�'� �
��' �'��
�2)
a.
L�
Up to two hundred fifty dollars ($250.00) per day for the first sixty (60)
days or part thereof the deficiency continues;
Between sixty (60) days and six (6) months, up to five hundred
($500.00) per day or part thereof the deficiency continues;
c. After six (6) months, up to one thousand dollazs ($1,000.00 er day or
part thereof the deficiency continues.
Far failure to provide data, documents, reports, information o to cooperate with
city during an application process or cable communication ystem review,
company shall pay fifty dollars ($50.00) per day far eac y, or part thereof, the
violation occurs or continues.
(3) For failure to test, analyze and report on the
a request pursuant to the franchise, the com�
($50.00) per day for each day, or part therec
(4) Forty-five (45) days following adoption
failure of company to comply with cons,
standazds or material provisions of th��
fifty dollars ($39�Aj
�lance of the system following
iall pay to the ciiy fifiy dollars
such noncompliance continues.
resolution of council deterxnining a
ion, operational, maintenance
use, company shall pay to the city
?00.00 per day for each day, or part
thereof, that such noncompliance ,c� ntinues.
(5) For iniriating or using a proc�e or device for procuring information or data
from a subscriber's temunal, welling ar business without the prior valid
authorization of the affect � subscriber as required by section 430.043, the
company shall pay fifty llars ($50.00) per day for each day, or part thereof, the
violation continues or, curs.
(6)
For selling, p:
aboutsubscrii
a subscriber's
authorization
pay five tho :
amount o
city by , mp�
idk' g or ofherwise maldng available to anyone any informarion
s' btained by monitoring transmission of any type of signal from
rninal, dwelling or place of business without the specific written
the subscriber as required by secrion 430.044, the company sha11
d dollars ($5,000.00) for each such violation. In addition, the total
paid the company for this information shall be forfeited to the
(7) For ' ping, monitoring or for arranging to tap or monitor, or knowingly
pe 'tting the tapping of, any cable, line, signal, input device or subscriber outlet
r�receiver for any purpose whatsoever without the specific written authorization
°/f the subscriber ar pursuant to court order, ttte company shall pay ten thousand
dollars ($10,000.00) per day for each day, or part thereof, the violation occurs or
continues.
9
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q �•s'1'1
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Each violation of each provision shall be considered a sepazate violation for which
a separate penalty can be imposed.
(9) Exclusive of the penalties set out above in this section, a violation of any
provision of this chapter is by Saint Paul Legisla6ve Code, section 1.05 med
to be a xnisdemeanor.
(10) The rights reserved by the city herein aze in addition to all other � ts and
remedies the city may have under this cha�ter, the franchise or F other law and
aze not intended to be exclusive. �
(Ord. No. 17364, § 9, 6-17-86; C.F. No. 92-1374, § 31, 9-22-92)
Sec. 430.037. Procedure upon determination of violation.
(a) Notice, remedy. Whenever the cable communicatiot�:s'officer shall find that the
company has violated one (1) or more of the terms, conditioris or provisions of section 430.036, a
written notice shali be sent to the company by registered 'a�il, return receipt requested, informing
them of such violation or violations. Such notice shall ' entitled a"Violarion Notice." The
company may remedy violations of subsections (1) th�ough (�4) of section 430.036 within three
(3) days of tender of the registered letter bearing the"r"Violation Notice." If the company fails to
remedy the violation within three (3) days after te� er of the registered letter, penalties shall be
assessed in accordance with the provisions in se,�tion 430.036 and paragraph (b) of this section.
Violation of section 430.036, subse
and shall be assessed from the first day o�,e
/
("�5) through (7) sha11 not be subject to remedy
(b) Disputed violation, hearing; findings. ,_ e
company may, within ten (10) days of the tender of written notice as provided for in paragraph
(a), notify the cable communicatio�s officer by registered mail that �there is a dispute as to
whether or not a violation has, iniFact, occurre �°. °'._ `�' °. �° _. �����:�~��
- __�.
'� � '� """ �° Such notice shall s eci with articulari the
������ _ ��'��,�t ��• P �' P tY
matters disputed by the
The cable comm�inications officer shall, upon receipt of the company's letter, cause the
matter to be referred t/the city counc�l far a heanng��`�'r�"� �s ������"� � '."
����
�o-t��t���� . ����������°��� ,� �. A heanng s1�a11 be held within
thiriy (30) days of r�eceipt of the company's letter by a committee designated by the council, or, if
mutually agreed t by the parties, by an independent hearing examiner appointed by the council
to determine if re is reason to believe the company has committed a violation of section
430.036;^� � �_ ��� ����a a����i� '�� After the hearing and review of
the comxriittee' report or hearing examiner's report, the council shall determine if there is reason
to believe the company has comxnitted a violation of secrion 430.036, and si�aH--,�����
������`�i�ee�����^� �a written findings of fact relarive to their determination.
,
_ � 4._ � �E:_� � .w �....w,�.����� ��-� , ;
;�� �
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`� �' 3��1 �
(c) Sa�s"fdcfion;qfPenalties. Upon a determination by the council that there is reason to
-„
believe a violation has taken place orhas vot been ciired'{with all ariionnts owed paidj; or in the
event the company chooses not to dispute the finding of the cable communications officer, the
city director of technology and management services shall immediately make withdraw
against the letter of credit provided for in the franchise ordinance in accordance with
penalries specified for such violations in section 430.036 Tke ciLy c7�eeEmx`of #"ec ;gy aud
mauagementservFCes:inay:�continue to make withdrawals z�ifhout furt ° nt2iori�io
.....,.,� . � _..�;....
fQi�kt� G�t� �at�net�`until the company has satisfactorily remedied the term co � on or
...._. . ...u..... ..a >
provision violated.
(C.F. No. 97-53, ' 18, 2-12-97)
Sec. 430.038. Reports and records.
�, A mpany shall fully cooperate in making available �easonable times, and the city
shall have the right to inspect���� " �;w_�, the books, records, � s, plans and other like materials
a€fi�ie-ea�applicable to ��the Saint Paul system at ,� time during normal business hours;
�re�e�-where volume �
inspection to take place on
ARTICLE IV
company may require
RIGHTS OF INDIVIDUALS
Sec. 430.041. Equal opportu�ty for service.
��`° mpany sha11 ot deny service, deny access or otherwise discriminate against
subscribers, chamiel user or general citizens on the basis of race, color, creed, religion, anceshy,
national origin, sex, af ctional preference, disability, age, marital status or status with regard to
public assistance. .. .= Eompany shall comply at all times with all other requirements of
federal, state and I al iaws and regulations, and a11 executive and administrative orders relating
to
Sec.
which aze hereby incorporated and made a part of this chapter by reference.
opportunity employment.
�ompany sha11 strictly adhere to the equal employment opportunity requirements
of the fe��eral government as well as state and local laws and regulations and shall keep a record
of em oyment statistics which shall be available for public inspection during normal business
��
�'� "��
��-a��
Sec. 430.043. Subscriber privacy.
No signals, including sagnals of an interacrive communicarions channel, shall be �
transmitted from a subscriber terminal for purposes of monitoring individual viewing patferns or
practices without the express written permission of the subscriber. Neither a�ke comp y, the city
nor any other person shall initiate or use any procedure or device for procuring information ar
data from a subscribez's ternunals or ternunal 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 condirion of se�vice, except in those
situations in which authorization is needed for billing, and which may be evoked by the
subscriber at any time without penalty of any kind whatsoever. The re est for such pernussion
shall be contained in a separate document with a prominent stateme that the subscriber is
authorizing the permission with full knowledge of its provisions. ch written permission shall
not extend longer than one (1) year�, provaded, that the subscrib sha11 have the option to renew
upon expiration. No penalty shall be invoked for a subscriber' failure to provide or renew such
authorization. Such authorization sha11 be required for eacty y�pe or classification of signals
transmitted &om a subscriber terminal.
(Ord. No. 17364, § 11, 6-17-86)
Sec. 430.044. Prohibit compilafion of subscrila`er lists for sale.
���ke-company shall not collect, campile or retain subscriber data except as necessary
for internai business purposes. Neither �t�e company, the city nor any of their agents or
employees shall, without the specific tten authorization of the affected subscriber, provide
data identifying or designating any s scriber to any party other than to the company and its
employees or agents for intemal b iness use. This shall include, but not be limited to, lists of the
names and addresses of such su cribers or any lists that idenfify the viewing habits of
subscribers. Written permissio from the subscriber shall not be required for the systems
conducting systemwide or ' ividually addressed electronic sweeps for the purpose of verifying
system integrity or monit ng for the purpose of billing. Confidentiality of such information
shall be subject to the p visions of this section.
(Ord. No. 17364, § , 6-17-86)
5ec. 430.045.1V�'onitoring prohibited.
Nei er ��he company, the city nor any of their agents shali tap or monitor, arrange far the
tapping o momtoring of, or permit any other person to tap or monitor any cable, line, signal,
input d'ce or subscriber ouflet or receiver for any purpose whatsoever without the prior valid
autho�`'ization of the affected subscriber.
ARTICLE V. 430.05. FRANCHISE FEE
.�
:�
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Sec. 430.051. Payment.
(a) FF�o1i' c�ompany shall pay a franchise fee of five (5) percent of gross re�
compensarion to the city for use of public rights-of-way and for the admiuistration
of the franchisec or suc""h ottier amount'a`s ina"v;lie saecifietl uz-a �rancliise. Each fra
written notice. and providing �ia�t�ie compan� opportunit�to comment on the �ro�osed
chan *�.e within that 90-day period. Payments shall be made on a quazterly'basis. The installment
payment for each quarter shall be due no later than forty-five (45) days'after expiration of the
quarter when due and shall be made to the city department of technoYogy and management
services " ,u �4������s�������`d"���e '"e,��x��u€
'2mf--0'+� c 'OInW'..rl3c...1�u[. Sv :ia4,# .a4.,v.aa.4i_:Kd'L Ti�...'€t�.,i G...Y'v` :au. .R'_u..di3°..ah'v } Raa...dK4I ,Y'=cUtii.�v.:PAV_��
�b� s?� : a ����
/
" �The city shall use all
�) ��,- '� ��' �� � 'h� ��:; ��
advance franchise fees only for cable-related purposes. All other franchise fees collected by the
ciry sha11 be utilized prunarily to support the city's a inistration of the franchise ordinance and
the planning and development of cable communic on services and secondarily for deposit in
the general fund or for other such uses as specifi�d by the city.
(Ord. No. 17364, § 13, 6-1�-86; C.F: o. 92-1374, § 32, 9-22-92; C.F. No. 97-53, § 19,
2-12-97) �
. . . ���
VI. 430.06. RATBS AND RATE ADNSTMENT
Sec. 430.061.
C`�!�'
t ���� "
��"a"��
'() 3"n cases w�ere 'r,egutahon of a, zates or a�
„ c
, � _ .
� � _- . �._
pernutted buY:;govemed by sta#eat�federat law, flle:city.sliali regulate:irt s-ni-con
applicable 2aw and regulafions" 'I'he catile'comniuuicatrons officer sliall have the
issue any or�er, regulation or firidwg pe�rni�fed orreqa�rrelby`Ei�ose apgI�cable r�
es is
with the
�- �e a e • �- i. �- -� � � � - - -- '-' '-_'
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U
Y . . • �
� _.
_ � � . . .
8 � � � �� � � �� �
� � 1 � " � � � ' • � �
� }_' �. �"
(Ord. No. 17364, § 14, 6-17-86; C.F. No. 93-1829, § 2, 3-30-94)
Sec. 430.062. Request for rate adjustment '
For areas in which state and federal law permit rate and charge regulation by the city,
company may make application far a revision of the rate schedule at any time.
(Ord. No. 17364, § 15, 6-17-86;
Sec. 430.063. Procedure
No. 93-1829, § 2, 3-30-94)
adjustment and hearing.
- - - ----- - -- -- - --- - - - - -- - -- - - - --- - --
- --- - -- -- -- --- - --- -- • -- - - -- - - -
- - • -- - - - - - -- - - � -- -- ----- -- - -
`
� �/'��
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l�liiii.Jiloi�ri�iviii��i�ti�a��i :�irnl���Ai.!���iu�G�rn
�
PLt�c�9p�'�PI�V •
��
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I�1�1 �'I \�i�1V � \��a'I � �lJI
L_ _ \._A_ l,. l °"•' .° . .
(a) An a ' carion for change in ���oa��-rates �� .�; � �,,�a� " . �• . . .
"`�. � �""�=` shallbe filed in
, .� ? -
a',�rdance with procedures established in this section and section 430.071. The
''�lication shall be supported by statistical and other proof indicating that the
�sting rate is inadequate and unreasonable and that the proposed changes therein
i are required to enable the company to render service to fulfill its obligarions under
; this chapter and to derive a reasonable profit therefrom.
. The application sha11 also include a
statement of facts, opinions, substantiating documents and e�ibits supporting the
change requested.
8
P� '
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q�-an�
ro�
(1)
�2)
(3)
The company's petition for a rate change shall include the following financial
reports which shall reflect the operarions of the Saint Paul system only:
Balance sheet;
Income stafement;
Statement of sources and applications of funds;
(4) Detailed supporting schedules of eapenses, income, assets and other items as may
be required; and � % �
i
(5) Statement of current and projected subscribers/and'penetration.
(c)
(d)
(�e)
The company shall answer a11 city
The company's accounting records
available for inspection by the city
access to records of financial trax�s
rates or other indirect costs
listed above sha11 include s
provide the city with the i�
to the financial conditio�i q
information.
ip�il' "able to the cable system shall be
it 1 reasonable times. The city shall haue
�tions for the purpose of verifying burden
to the Saint Paul operation. The docusnents
detail and/or footnotes as may be necessary to
n needed to make accurate determinations as
� the system. All financial statements shall be certified
as accurate by an office of the company. The company shall beaz the burden of
demonstrating the ju's ess, reasonabieness and accuracy of the costs.
e£' 4 ' Y :. .d� ., r'i
u%�t34. �i ' �. � �.a n� �
� ex.
�u, � ,u'r��a. , a'.a
' _ $ _� �,,:u�- . ' �, xa . ..' a:
- .; � �:. �:, �. :
x:�.�..,� �s�:.,��ik'�j� x.._':.��'�,z��
The c�ci cil sha11 consider the following factors in approving or disapproving a
�2)
(3)
(4)
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;
The revenues and profits derived from system services;
The efficiency of the company;
The quality of the service offered by the company;
��
� a'��
°t�-��►�1
(5) 3Tie eosf"s-:Xncuired'"by the company;
��� (6} -�,�=The original cost of the system less deprecia6on;
(7fr) A fair rate of return with respect to the cost of borrowing and the
return on investrnents having similar risks to that of cable
communications; �
/
(8�) The e�ctent to which the company has adhered to the t�ns of this
agreement; �
(4�) Faimess to city residents, subscribers and users;
(�'�3) Capital expenditures by the company in
services to subscribers; and
(1�9) Such other factors as council may
relevant.
of
updaxed technology and
(� The council will not consider any
company's goodwill. Neither the �
company's goodwill shall be am�
them. Furthermore, the council�w
based, in whole or in part, o�in�r
to any type of transfer or sale,,�'
(�g) Upon receipt of a
have thirry (30) d
fully the request f
and hearings set c
�l atibn based upon the franchise right or the
��of the franchise nor the value of the
yed as an expense nor shall a return be paid on
not consider any rate change application
sed cable communicarions system value due
;� or changes in rates under this section, the city shall
n which to determine whether it wishes to review more
anges in accordance with the procedures for rate shxdies
secrion 430.071. In the event that the council takes no
action within-t ' (30) days, the company may file in the office of the city clerk
and the off ce cable communications a new or amended rates schedule which
sha11 be effe ive and may be charged on the tenth day (or such later date that the
compariy a11 designate on its filing) after its filing and sha11 continue in effect
untiL�ap oved or denied by resolution or until deemed approved pursuant to the
tertfis f the ordinance amending this section and the charter, which charter
r�q ' es a public hearing after proper notice or pursuant to applicable state or
fe rallaw.
- :. - - - - --- - -- -
--- - - - - - -- - -- -- � -- - -- - -- •- - - -- - - -- --
y-�'��
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(Ord. No. 17364, § 16, 6-17-86; C.F. No. 93-1829, § 2, 3-30-94)
ARTICLE VII. 430.07. APPLICATIONS PROCEDURE
Sec. 430.071. Modification of franchise obligation.
(a) Procedure. Following the adoption and acceptance of the anchise and except as
otherwise specifically provided herein or in the franchise ordin c, all applications by company
for a modification of franchise obligafions shall be made and ; �cessed in accordance with the
following procedure to the ea�tent that this procedure is not erseded by ��Tei'a��� '`�e
!%
(1) If company seeks such a modification,�jf shall file an application for modification
of franchise obligation in the offices,of cable communications and of the city
clerk. �
(2) The city clerk sha11 place the afiplication upon the ne�t available city council
agenda. ��
(3) The city council sha1�£er the application Yo committee.
(4) At least twenty (20�%�fut not more than thirty (30) days after referral to committee,
during which tun� taff shall haue reviewed and provided the council with a
written evaluari� , the committee shall consider the application. Upon staff
request, the c, � �ttee chair may at his or her discretion extend stafFs reporting
deadline by� more than ten (10) days.
(5) No later sixry (60) days after said application has been filed, the committee,
using t� standards set forth in pazagraph (b) of this section, shall make a
reco '� endarion to the full council for consideration at the nea�t scheduled council
(6) I.�sing the standards set forth in paragraph (b) of this section, the council shall
,�pprove or deny ihe requested modifications within one hundred twenty (120)
� days of the filing of said application. Such one-hundred-twenry-day period may be
extended by mutual agreement of the company and the city. Should an ea�tension
be agreed upon, the chair of the committee considering the application may adjust
the committee and staff s timetable accordingly. However, whatever the extension
may be, the comxnittee sha11 refer the applicafion back to the council at least thiriy
(30) days before the final day for approval or denial.
(b) Standards:
:
���
�-a����
q�•a��t
(1} During the period a franchise is in effect, company may obtain from the city
modificarions of the requirements in such franchise:
a. In the case of any requirement for facilities or equipment, inclu g
public, educafional or governmental access facilities or equi nt, if the
franchisee demonstrates that:
1. It is commercially unpracticable for the franc s e to comply with
such requirement; and
2. The proposal by the franchisee for mo ation of such
requirement is appropriate becaus� mmercial impracticability;
or
b. In the case of any such requirement
demonstrates that the mix, quality a
franchise at the time it was
modificarion.
>ervices, if the franchisee
;vel of services required by the
be maintained after such
(2) Company may not obtain madifica4' n under this section of any requirement for
services relating to public, educ onal or governmental access.
(3) Far purposes of this sectio � term "coxntnerciaily impracticable" means, with
respect to any requireme � plicable to company, that it is commercially
impracticable for comp to comply with such requirement as a result of a
change in conditions b�ch is beyond the control of company and the
nonoccurrence of w'�h was a basic assumption on which the requirement was
based. f�
(4) Notwith:
notice to
by the fr�
a. %
�
or other adjustment;
1
/'subsection (1), company may, upon thirty (30) days' advance
�, rearrange, repiace or remove a particular cable service required
if:
service is no longer available to company; or
5uch service is auailable to company only upon the payment of a royalty
required under Secfion 801(b)(2) of Title 17, United States Code which
company can document:
Is substantially in excess of the amount of such payment required
on the date of the company's offer to provide such service; and
2. Has not been specifically compensated for through a rate increase
��
/'�-��
q�.a��I
(5) Notwithstauding subsection (1), company may take such actions to rearrange a
particular service from one (1) service tier to another, or otherwise offer the
service, if the rates for ail of the service tiers involved in such actions aze qt�
subject to regulation under the act. !�
(Ord. No. 17364, § 17, 6-17-86; C.F. No. 93-1829, § 4, 3-30-94)
ARTICLE VIII. 430.08. TERMINATION AND TRANSFER OF
Sec. 430.081. Terminafion and forfeiture.
(a) Termination, substantial breach of terms and conditi . Iri addition to all other rights
and powers retained by the city under the franchise, this chapt or otherwise, the city reserves
the right to forfeit and terminate the franchise and all rights �d privileges of the company
hereunder in the event of a substantial breach of its terms�conditions. A substantial breach by
company shall include, but shall not be lnnited to, the fqYlowing:
(1) Violation of any material provision af the-franchise or any material rule, order,
regulation or determination of the oity }�iade pursuant to the franchise�i����
�, .,f. � . j
��)
(3)
Attempt to dispose of any
prevent the city from purc
Attempt to evade any
deceit upon the city o,
�"acilities or properry of its cable system to
it, as provided for herein;
provision of the franchise or pracrice any fraud or
cribers or customers;
�
(4) Failure to begin or c mplete system construction or system extension as provided
under the francl}is�
(5) Failure to p�'de the types or qualiry of service as required herein;
(6) Failure td �zstare service after ninety-six (96) consecutive hours of intemipted
service; �cept when approval of such interruption is obtained from the city;
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�g)
misrepresentation of fact in the application for or negotiation of the
to replenish the fund secured by the letter of credit within thirty (30) days
final draw by city; and
Failure to maintain bonds and/or insurance.
(101 Failure to com�lete and activate additional channels on the subscriber network or
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insfiturional network as ma,�be required by the franchise.
(b) No fault of company. The foregoing shall not constitute a major breach i;
occurs but it is without fault of a#�e company or occurs as a result of circumstances
reasonable control. Circumstances beyond the control of a:company shall include, t
lunited to, acts of God; strikes, lockouts or other labor disturbances; unavailabili�y
materials; failure of other utilities to perform walkout and make ready and to 16c�
utilities in a timely manner; orders or reshaints of any land of the ;
States or the State of Minnesota or their respective departments, a€
or military authority; insurrections, riots; landslides, earthquakes, :
explosions; breakage or accident to machinery, transmission pipes
or event not reasonably within the control of company and not pro
negligence. ��Company shall not be excused by mere
malfeasance of its directors, officers or employees.
d its
be
r or
ient,ofiEhe United
�r,.o�` cials or any civil
�n' s, droughts, floods;
Is; or any other cause
� caused by its
nor by misfeasance or
(c) Demand for compliance; notice of intent to re'quest termination.
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��� a"''� ='�In the event that the city determines�iat `�e company has substantially violated
any provision of ��franchise, any rule or reg�ation promulgated pursuant �,�����
���� �; ---`° or any applicable federal, st�fe or local law, the city shall make a written
demand, by registered mail, return receipt requested, upon ���company that it remedy such
violarion and that continued violations ma�be cause for termination. The city sha11 give Athe
company thirty (30) days after service of,fhe aforementioned notice to conect the violationi�
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counc�l`may i�of g�ve company ar�y opporfi�rnfy to compCy;'
has1(�een alteged and proued to the courtir�t`s saf�sfacfson:
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(�g) Judicial pr ceeding. In the event the city council terminates the franchis �;°`' �3�
°` ."°`��, the com y shall have the statutory period of one hundred twenty (120) days after
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receiving notice of rmination in which to commence an action. During such period and until a
court of compete jurisdiction has decided ihe matter and the time for appeai has elapsed, the
franchise shall main in full force and effect unless sooner teiminated or expired and not
renewed in ac rdance with law.
(Ord. No �t"{364, § 18, 6-17-86)
Sec. 430.082. Franchise renewal.
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' a)" E�very francZiise;shalt provide for tlie riglit ofmunicipal aequi"sitlon, consistent wif]i
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this Secfion.43D.683":
(1�a) Right of first refusal; value. In the event atke company forfeitsi#s fcanc"hise, or u n
revocation or other terniination of the franchise pursuant to provisions of this chapter or th
franchise ordinancee; or at the normal expiration of the franchise term, city shall have the ght of
first refusal, directly or as an intermediary, to purchase the franchised cable communi tion
system. �he ci ma if it chooses ac uire the cable s stem and its sets i3 tran er the
-- ,�.9 ,� --
If the city elects to purchase a#3�e system at the normal exp
the value of the franchise term shall be the fair market value as an
�".�#3�system as detennined by a panel of three (3) independent ;
city and the company. Should city and �company fail to agree u
independent appraisers, each shall select one (1) appraiser. Th
the franchise term,
business concern of
�iraisers agreed upon by the
the selection of three (3)
(2) appraisers so selected
shall then select a third. If the city elects to purchase the sys m in the event of forfeiture,
termination or revocation prior to the normal expiration d e, the purchase price to be paid by the
city shall be the company's capitalization cost less depr iation. "Capitalization cost" shall mean
the monies invested for tangible assets, exclusive of' angible assets such as goodwill or value
ofthe franchise � ��'�^�� :� .. _ _ "-�°�--_�. ����;�;
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(�) Transfer to city. Up exercise of this option and the payment of the above sum by
the city and its service of offi ' notice of such ac6on upon � company, the company sha11
immediately transfer to the possession and tifle to ali facillties and properry, real and
personal, of the cable system, free from any and all liens and encumbrances not
agreed to be assumed by e city in lieu of some portion of the purchase price set forth above;
and the company sha11 xecute such warranty deeds or other instruments of conveyance to city as
sha11 be necessary fo 's purpose.
(��)
agree upon
other for azl
governed b�
the event city and company cannot
of cable e�e�ietrsystem, either may give notice of a demand to the
Arbitration shall commence and proceed according to law and shall be
section 430.035.
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sysfe� !n accordance vi�th tlus francluse °dtirii2g
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(Ord. No. 17364, § 20, 6-1'7-86)
Sec. 430.084. Foreclosure and
(a) Upon the fareciosure other judicial sale of a11 ar a substantial part of the cable
communication system, or upo the termination of any lease covering all or a substantial part of
the cable communication sys m, �ke company shall notify the city of such fact, and such
notification shall be treated s a notification that a change in control of the company has taken
place, and the provisions the franchise governing the consent of the city council to such
change in control of the ompany shall apply.
(b) The city uncil shall have the right to cancel the franchise one hundred twenry (120)
days after the appo' tment of a receiver, or trustee to take over and conduct the business of the
company, whethe in receivership, reorganization, batilauptcy or other action or proceeding,
unless such re ership or trusteeship sha11 have been vacated prior to the expirarion of said one
hundred twen (120) days, or unless:
(1) Within one hundred twenty (120) days after his election or appointment, such
receiver or trustee shall have fully complied with a11 the provisions of this chapter
and remedied all defaults thereunder; and
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(2) 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
each and every provision of this chapter and the franchise granted to the comp�
Sec. 430.Q85. A6andonment or transfer.
(a) Abandonment. Notwithstanding the provisions of the franchise, �e c pany shall
not abandon any cable communicarion service or any portion thereof, or cease ovidin
cable service required pursuant to the franchise, without having given three ) months' prior
written norice to the city. ��ke company sha11 not abandon any cable co unication service or
any portion thereof without compensating the city for damages result � to it from such
abandonment. ����"��s�'�i�����'t,�s,�a"s��e"?,�'���' e��= "z��aa��
(b) Transfer:
�Y ', �.' �(1) ' franchise shall not be assigne or transferred, either in whole or in part, or
leased, sublet or mortgaged in any manner, w e r b sal o as ets or tr sfer of control of the
e�°� � or its parents, or otherwise n sha11 title thereto, either legal or equitable or any
right, interest or properry therein, pass to or st in any person without the prior written consent
of the city council, which sha11 not unreas ably be withheld, and in compliance with applicable
state rules; provided, however, that no a orization of the council shall be requixed for any
mortgage, piedge or other encumbran of this franchise ordinance or �e company's cable
system as security for fmancing p ses .' , " �
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(Ord. No. 17�`64, § 21, 6-17-86; C.F. I3o. 92-1374, § 33, 9-22-92)
Sec. 430.(,�6. Removal of cable equipment upon termination or forfeiture.
�����
�a) Removal. Upon ternunarion or forfeiture of �ireganr�a�fianees a franchise_ �
c ro shall remove its cab e s ste from the streets, alleys and other public places within the
fr hise area if the city so requests in writing. Such request shall be served upon the company's
1 al business by registered mail, return receipt requested, and shall give the company a
asonable period of time to effectuate such removal. The city ma�require the companv to
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such other conditions as the eity may reasonabiy establish to protect the streets and public and
condition as existed immediatel�prior to removal.
(b) Failure to remove. Should a;company fail to remove the aforen
requested by the city, the city shall have the right to make such removal at
company and the company shall, upon written demand, pay to the city the
done or performed by the city. �
(Ord. No. 17364, § 22, 6-17-86)
ARTTCLE IX. 430.09. GENERAL
Sec. 430.091. Interference with cable service
� d equipment as
.xpense of the
of such work
Neither the owner of any multiple-unit resid " ial dwelling nor his agent or representative
shall interfere with the right of any tenant or la esident thereof to receive cable
ea�zz�ien-service, cable installation or m' enance from a cable ca�company
regulated by and lawfully operating under a v d and existing cable e�ex�ierrfranchise
issued by the City of Saint Paul.
Sec. 430.092. Gratuities and payment ; o permit service prohibited.
Neither the owner of any m� iple-unit residential dwelling nor his agent or representative
shall ask, demand or receive any ent, service or gratuity in any form as a condition for
permitting or cooperating with t, installation of a cable communication service to the dwelling
unit occupied by a tenant or r dent requesting service.
Sec. 430.093. Penalties a," charges to tenants for service prohibited.
Neither the o- r of any multiple-unit residential dwelling nor his agent or representative
shall penalize, char or surcharge a tenant or resident or forfeit or threaten to forfeit any right of
such tenant or resi �' nt, or discriminate in any way against such tenant or resident who requests
or receives cable ' ommunication service from a franchise operating under a valid and existing
cable comm '"ation franchise issued by the City of Saint Paul.
Sec. 430.09 . Reselling service prohibited.
o person shall resell, without the expressed, written consent of both the company and
the ci , any cable service, progiam or signal transmitted by a cable communication company
ope ing under a franchise issued by the City of Saint Paul.
430.095. Theft of services prohibited.
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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
company ; P"r`ovide@ tliat, for puzposes of fi1�is sechon, the `fetrii "conuection"`refers to.
phys�cal o%.electronic connechbn's used ta ieceive a serv�ce fqi wlnch flie persQn has t paid, or
��_
used fa teciisfircbnte t�e=signai to anqthes� person wlio has iiot pazc��'or tlie service_
Sec. 430.096. Protection of property.
Nothiug in these general provisions shall prohibit a person from
communications system facilities conform to laws and regulations and
necessary to protect safety, functioning, appeazance and value of pre�
and safety of persons and properry. �
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Chapter 430. Cable Communications
Servicex
xEditor's note--This chapter is derived from Ord. No. 16661, adopted May 29, 1
Cross reference(s)--Steam franchise, App. A; gas franchise, App. B; electric c
App. C; district heating franchise, App. F; Energy Pazk Energy System franchise, � p. G;
Continental Cablevision franchise, App. H, renewed and replaced by Continenta ablevi:
franchise, App. ; �
ARTICLE I. 430.01. STATEMENT OF INTENT;
REQUIREMENT, TERMS AND
FRANCHISE
*Editor's note--The numbers in the article titles of Jd�is chapter are derived from the
numbers given to several sections in this chapter by the c' and have been retained herein at the
discretion of the editor for ease of reference by the user
%
Sec. 430.011. Statement of legislative findings ntent and purpose.
The council finds that the orderly re ation of cable communications within the City of
Saint Paui will help ensure the most effec ' e distribution of quality cable service at acceptable
rates to the subscribers and reasonable r urn to the system operators.
Sec. 430.012. Definitions.
For the purpose of this
chapter, the following terms,
herein, except as otherwise�
words used in the present.�ensi
�apter and any franchise granted subject to the conditions of this
�rases, words and their derivations shall have the meaning given
;ified in a franchise. When not inconsistent with the context,
include the furixre, words in ihe plural number include the
singulaz number, and w ds in the singular nuxnber include the plural nuxnber. The words "shall"
and "will" are mand ry and "may" is pemussive. Words not defined sha11 be given their
comnnon and ordin meaning. To the ea�tent that the rate regulation terms or provisions herein
conflict with the te regulation provisions of the Cable Communicarions Policy Act of 1984, 47
U.S.C. § 521 e eq. as amended (hereinafter "Cable Act"); or with rate regulations prescribed by
the Federai C mmunications Commission pursuant thereto (hereinafter the "FCC Rate
Regulation the Cable Act and the FCC Rate Regulations sha11 eontrol.
ccess channels means those channels dedicated by law, rule, regulation or commitrnent
of a mpany to the programs of the general public, local government, educational institutions or
the eased use of commercial or noncommercial entities..
�
Basic Service or basic cable service sha11 have the same meaning as the term `,`basic
service" under federal law.
Cable Communications comparry or compmzy means any person owning, controlling,
operating, managing or leasing a cable system within the City. �
Cable communications officer means that individual, official or,,employee of the city
charged with the responsibility of a.dministering the terms and conditions and for the planuing
and development of cable services of a cable franchise. ,.%
Cable Service means the one-way transmission to
or (B) other programming service, and the subscriber inte
selection or use of such video programming or other prog
Cable system has the same meaning as the term
include ail equipment, facilities, and devices
�ers of (A) video programining,
if any, which is required for the
� service.
�le system under federal law, and shall
to such cable system.
City is the Ciry of Saint Paul, a municipal co�poration, in the State of Minnesota, as it
exists and as its borders may from time to time be hanged. Where this ardinance requires that
an action be taken by the city, that ac6on may b en by any person authorized to act on the
city's behalf.
Company means the grantee of righ�`'s under a franchise, or its permitted successor,
transferee or assignee. �
Connection shall mean the a�mchment of the drop to the first radio or television set or to
an electronic terminal device or co�.iverter of the subscriber.
Converter sha11 mean electronic device, which converts signals from cable distribution
system frequencies to standa� broadcast frequencies.
Cost ofservice r Zation shall mean the method of determining rate increases contained
in this ordinance, as dified or superseded by the Cable Act or FCC Rate Regulations.
Council is e city council of the City of Saint Paul. .
Drop a11 mean the coaxial cable that connects the facility to the nearest feed cable of
the cable n _ ork.
sha11 mean the Federal Communications Commission and any legally appointed,
or elected agent or successor.
Franchise shall mean a grant of rights and privileges to provide cable service made
rt to this chapter to conshuct and operate a cable system.
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Gross revenues shall mean all revenue derived directly or indirectly by the company, its ,�
�liates, subsidiaries, pazent and any person in which the company has a fmancial interest from
or in connection with the operation of the company's cable system to provide cable services:'�
Gross revenues shall include, by way of example and not limitation, revenues from basic;5ervice,
other cable service tiers, monthly fees for programming offered on a per-channel or per-program
basis, installation and reconnection, leased channel fees, converter rentals, studio refltal,
producrion equipment and personnel fees, interactive cable service, advertising, c�ble store sates,
late payment service fees and other services offered over the system, subject to �uch exclusions
as may be specified in a franchise. E "`
Installation sha11 mean the connection of a cable system from feeder`cable to subscribers'
facilities. ,+
Local shall mean within the City of Saint Paul. �
Make-ready shall mean the rearrangement of existing wires��on utility poles performed by
telephone and electric utility companies to allow for the addition�,nf cable plant on such poles.
Person includes any individual, corporation, p�
company, trust, or any other legal enrity, including the
association,joint stock
Program shall mean any signal, message,
or broadcast-type program.
data, communication content service
Public property is any property owned i the city other than a street or sidewalk.
Sidewalk shall mean that portion of,� highway, other than the roadway, set apart by curbs,
barriers, markings or other delineation foy�pedestrian travel, including parkways, not on private
lands. ��
Subscriber means the city y government entity or any other person who legally
receives any cable service deliv,ered over a cable system.
S�eet shall mean t�e surface of and the space above and below any public street, road,
highway, freeway, lane public way or place, aliey, court, sidewalk, boulevazd, parkway,
drive ar other easeme�t now or hereafter held by the city for the purpose of public travel and
sha11 include such q�Tier easements or right-of-way as shall be now held or hereafter held by the
city which shall tthin their proper use and meaning entitle the city and a company to use thereof
for the purpos, �of installing or transmitting cable transmissions over poles, wires, cables,
conductors , ucts, conduits, vaults, manholes, amplifiers, appliances, attachments and other
property s may be ordinarily necessary and pertinent to a cable system.
User shall mean any individual, institution, organization, or business that purchases any
of a cable system's bandwidth for delivery of programming or services or for receipt of
uning ar services, or which is entitled to use any portion of the bandwidth at no charge.
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WaZkozct shall mean the process whereby a company and telephone and electric utility �=�/
companies inspect utility poles throughout the city to determine the amount of make-ready to'be
performed by the utility companies.
f; ,
(Ord. No. 17364, § 1, 6-17-86; C.F. No. 92-1374, § 30, 9-22-92; C.F. No. 93-1829,,§'1, 3-30-94)
Sec. 430.013. Franchise requirement.
No person shall construct or operate or parLicipate in the consiructio�%of operafion of a
cable system within the City of Saint Paul without first obtaining a franchi�e issued by the city.
Sec. 430A14. Requirement for certitcate of confirmation, state ap�iroval and compliance
with all state and federal laws. f
No person shall operate or construct, or participate in th�;e� strucrion ar operation of a
cable system within the City of Saint Paul without first obtairu�g any certificate required by state
law, rule or regulation. „�7
Any cable system within the city sha11 at a11 time" comply with all state laws and rules
regarding cable communications not later than one (1, `year after they become effective unless
otherwise stated and with all federallaws and regula"tions regarding cable as they become
effective; provided that, nothing herein sha11 be z�ad to permit a company to avoid any obligation
it owes under a franchise, to the extent that the>�bligation is grandfathered, ar to the eatent that
the obligation may be enforceable. ,��
(Ord. No. 17364, § 2, 6-17-86)
Sec. 430.015. Franchise; terms a�d conditions.
�N
(a) A nonexclusive frarichise of up to fifteen-years may be granted by ordinance to a
person to construct and operate a cable system to provide cable service in the City of Saint Paul.
Every franchise shall be s,�fbject to and incorporate the provisions of this chapter. A franchise
of less than fifteen year5in duration may include a provision for extension of the term by the city
acting unilaterally, ok�'upon request of the company, if the city, in its sole discretion, determines
that: (1) the public 'nterest would be served thereby; or the company has satisfactorily complied
with its obligati� s hereunder•, and the cable system is meeting the cable-related needs and
interests of th community, and the enforceable commihnents of the company aze such that the
cable syste is expected to meet the needs and interests of the community over the ea�tension
term. Th city and a company may agree to additional terms and conditions as may be deemed
necess�, in the public interest; providing, that said terms and conditions aze consistent with the
pro ions of this chapter and applicable law. While each francluse shall be subject to this
C pter 430, this chapter is not a contract.
(b) No franchise shall be awarded by the city which does not meet the minimum
requirements set forth in Minnesota Statutes, Section 238.084, attached hereto as Appendix A
�
9�-a�7
and incorporated herein., and every franchise shall be deemed to require satisfactii
minimum conditions.
(Ord. No. 17364, § 3, 6-17-86)
f
Editor's note--The state statute, Section 238.084, referred to in pazagraph (b) of ?
430A15 above, and attached as an Appendix A to Ord. No. 17364, has not.been set out herein,
but can be found on file for public inspection in the city clerk's office. ,
„
i
ARTICLE II. 430.02. OFFICE OF CABLE
Secs. 430.021, 430.022. Reserved.
Editor's note--C.F. No. 97-53, § 21, adopted Feb
430.022, which pertained to establishment and office fun
cable communications, which sections derived from Ord:
1986. t�
Sec. 430.023. Reserved.
Editor's note--Section 6 of Ord. No.
its entirety. Prior to its deletion, § 430.023 p`i
the city, and was derived from Ord. No. 166�
ARTICLE III.
Sec. 430.031. Rules and
TION AND REGULATION
(a) City may promzllgate. In addition to the powers of the city to regulate and control the
franchise, and those po�ers expressly reserved by the city, or agreed to within a franchise, the
right and power is he�reby reserved by the city to promulgate such additional reasonable
regulations as it shali' find necessary in the exercise of its lawful powers and in furtherance of the
terms and
�)
company i
of this chapter and a franchise.
zest of company. The city may also adopt such regulations at the request of a
application to the city.
�� '(c) Access channels, administration. The city reserves the right to determine how the
publib, educational and govemmental access chamiels will be administered; to establish rules and
pr cedures for use of that access channel capacity or to delegate responsibility far establishing
ose rules to another entity; and to establish rules and procedures under which a company may
use such channel capacity when it is not being used for the purposes designated, and rules and
procedures under which such permitted use shall cease.
. 1�2, 1997, repealed §§ 430.021 and
ctions, respectively, of the office of
No. 17364, §§ 4, 5, adopted June 17,
adopted June 17, 1986, deleted § 430.023 in
to the cable communications commission of
, adopted May 29, 1980.
�1 � ��7
Sec. 430.032. Public notice.
Public notice of any city public meeting relating to amendments to the franchise ��`
ordivance, franchise renewal, performance evaluation sessions and hearings at which �dverse
action may be taken against a company pursuant to its franchise sha11 be by publication in a local
newspaper of general circulation at least ten (10) days prior to the meeting, and posting at City
Ha11. `
(Ord. No. 17364, § 7, 6-17-86)
Sec. 430.033. Performance evaluation sessions.
In addition to such other remedies and procedures as may be
430 or a franchise, the City shall haue the right to conduct
this Secfion 430.033.
(a) Evaluation. The city may hold periodic cable ;
on its own initiative or at the request of a company to rev.
companies. All such evaluation sessions shall be open to
sessions sha11 be given in accordance with the procedurep?
for in this Chapter
> as provided in
evaluation sessions
�the performance of any or all
; public. Notice of all evaluation
out in section 430.032.
(b) Topics of discussion. Topics which may�e discussed at any scheduled or special
evaluarion session may include, but not be limite�'fo, service rate structures, franchise fee,
penalties, free or discounted services, applicatiqri of new technologies, system performance,
services provided, programming offered, cus�omer complaints, privacy, amendments to this
chapter, judicial and FCC rulings, line exte�i'sion policies, and company or city rules.
(c) Additional topzcs. Member fof the general public may request that additional topics be
considered as part of the evaluation��sions.
/�
(d) Cooperation with clt�' During a review and evaluation by city, each company sha11
fully cooperate with city and sha11 provide such information and documents as city may request
to reasonably perform the rEView. Nothing in this section shall be read to limit a company's
obligation to provide infgr�ination under other provisions of this Chapter 430, or a franchise.
(g) Tests and,analyses. If at any time during its review the city council deterinines that
reasonable evidence exists of inadequate cable system perfoimauce, it may require a company to
perform tests and'�analyses directed toward such suspected inadequacies at the company's own
expense. Eackt'Company required to perform tests and analyses shall fully cooperate with ciry in
performing�snch testing and shall prepaze results and a repoft, if requested, within tl�irty (30)
days aftermorice. Such report shall inciude the following information:
(1)
The nature of the complaint or problem which precipitated the special tests.
(2) What system component was tested.
�!�-�,�7
3 The e ui ment used and rocedures em lo ed in testin �
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(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.
i
The council may require that tests be supervised, at company's expense, by a professional
engineer not on the permanent stafFof the company. The engineer shall sign �11 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. j
(g) Tests, when required. Tests required pursuant to this sec
performed in response to specific complaints or problems that give
such tests are necessary to protect the public against substandazd c:
Sec. 430.034. Complaints procedure.
Every company shall comply with such customer
from time to tune, whether by regulation pursuant to this
P430.033 sha11 only be
city reason to believe that
service.
standards as the City may adopt
or by ordinance or
resolution. At a minimum, every company shall satisfyfthe following standards, unless its
franchise provides otherwise. �6`
/
(a) Local off ce, telephone access; hours'requirements; records. During the term of the
franchise, and any renewal thereof, each comp�iiy shall maintain within the city a local business
office or offices for the purpose of receiving,and resoiving all complaints regarding the quality of
service, equipment malfunctions, billings disputes and similar matters. The office must be
reachable by a local, toll-free telephone,eall, and each company shall provide the city with the
name, address and telephone numberpf a person who will act as the company's agent to receive
complaints regarding quality of se oe, equipment malfiznctions, billings and snnilar matters.
The local office sha11 be open to ze�ive inquiries or complaints from subscribers during normal
business hours, and in no even� less than 9:00 am. to 5:00 p.m., Monday through Friday,
excluding legal holidays. Company shali provide the means to accept complaint calls twenty-four
(24) hours a day, seven (7) a week. Inquiries and complaint ca11s shall be accepted by
customer service representatives between 5:00 am. and 10:00 pm., seven (7) days a week. Any
service complaints from subscribers sha11 be inves6gated and acted upon within twenty-four (24)
hours. Any service complaint shall be resolved within three (3) calendar days. Upon notification
by a subscriber and verification by the company, the company shall credit a subscriber's account
on a pro rata basis far loss of service exceeding four hours within a twenty-four (24) hour period,
.
or for a loss o£service that exceeds forty-eight (48) hours within a thirty-day period, except as
otherwise may be provided in the franchise. Each 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
peniodsc inspection by city.
(b) Information concerning procedures, etc. As subscribers are connected or reconnected
7
y�
to the system, the company shall, by appropriate means, such as a cazd or brochure, furnish
information conceming the procedures for making inquiries or complaints, including the name,
address and locaJ telephone number of the employee or employees or agent to whom suc
inquiries or complaints aze to be addressed, and fiunish information concerning the ci ,office
responsible for admivistration of the franchise with the address and telephone numb��of the
office. �
i
r
Sec. 430.035. Arbitration of disputes. , j
i�
(a) Demand for arbitration. A franchise may provide that, in the�event city and company
cannot resolve a dispute which arises as a result of the consiruction, operation ar management of
the cable system and which is not governed by section 430.036, eith�r pariy may give notice of a
demand to the other for azbitration. �
(b) Procedures. Any arbitra6on provision shall provide at a11 disputes decided by
arbitration shail be pursuant to the provisions of the Uniform bitration Act, Minnesota
Statutes, Sections 572.08 through 57230, except the parties all each, within fifteen (15) days
of the notice of a demand, appoint (1) one azbitrator who i experienced in cable communications
and not employed by or in any manner affiliated with ei er city or company. Arbitrators shall
each agree upon the selection of a third arbitrator, similarly qualified, within fifteen (15) days.
(Ord. No. 17364, § 8, 6-17-86)
Sec. 430.036. Penalties.
Every franchise sha11 provide for tl�e deposit of a letter of credit to insure faithfixl
performance by the company. Far the violation of any of the following provisions of the
franchise, penalties sha11 be chargeab�o the letter of credit and a company as follows:
(1) For failure to complete system construction or upgrade in accordance with the
construction or ppgrade plan provided in the franchise (as that plan may have
been modifie5l�by the cable communications officer in writing in accordance with
a franchise �unless the city council specifically approves the delay by motion or
resolutio�due to the occurrence of conditions beyond company's reasonable
may be fined as follows:
�
�
�
�
%
G-
�
c.
Up to two hundred fifry dollazs ($250.00) per day for the first sixry (60)
days or part thereof the deficiency continues;
Between sixty (60) days and six (6) months, up to five hundred dollazs
($500.00) per day or part thereof the deficiency continues;
After six (6) months, up to one thousand dollars ($1,000.00) per day or
part thereof the deficiency continues.
98a��
(2) For failure to provide data, documents, reports, information or to cooperate with
city during an application process or cable system review, company shall pay fifty
dollazs ($50.00) per day for each day, or part thereof, the violation occurs or �
continues.
/
(3) For failure to test, analyze and report on the performance of the system fo�towing
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.
(4) Forty-five (45) days following adoption of a resolution of counc�l determining a
failure of company to comply with construcrion, operational, rriaantenance
standazds or material provisions of the franchise, company s�aall pay to the city
two hundred dollazs ($200.00) per day for each day, or parythereof, that such
noncompliance continues. �
C
(5) For initiating or using a procedure or device for proc�ng information or data
from a subscriber's terminal, dwelling or business� thout the prior valid
authorization of the affected subscriber as requirecYby section 430.043, the
company shall pay fifry dollazs ($50.00) per da��for each day, or part thereof, the
violation continues or occurs. i
(6) For selling, providing or otherwise mak�i�-g a�ailable to anyone any information
about subscribers obtained by monitornig transmission of any type of signal from
a subscriber's terminal, dwelling or ptace of business without the specific written
authorization of the subscriber as r,equired by section 430.044, the company shall
pay five thousand dollazs ($5,00,0:00) for each such violation. In addition, the total
amount of funds paid the company for this information shall be forfeited to the
city by company. /
(7) For tapping, monitoring or for arranging to tap or monitor, or knowingly
permitting the tapping of, any cable, line, signal, input device or subscriber outlet
ar receiver for any;purpose whatsoever without the specific written authoriza6on
of the subscribe�or pursuant to court order, the company sha11 pay ten thousand
dollars ($l0,OQ0.00) per day for each day, or part thereof, the violafion occurs or
continues. ..
�'
(8) Each uiolation of each provision shall be considered a separate vio]ation for which
a separate penalty can be imposed.
(9) ,�Exclusive of the penalties set out above in this section, a violation of any
% provision of this chapter is by Saint Paul Legislative Code, section 1.05 deemed
� to be a misdemeanor.
�(10) The rights reserved by the city herein are in addition to all other rights and
remedies the city may haue under this chanter. the franchise or any other law and
�!�-�7�
are not intended to be exclusive.
(Ord. No. 17364, § 9, 6-17-86; C.F. No. 92-1374, § 3l, 9-22-92)
Sec. 430.037. Procedure upon determination of violation.
(a) Notice, remedy. Whenever the cable communications officer shall find that the
company has violated one (1) or more of the terms, condirions or provisions of section 430.036, a
written notice shall be sent to the company by registered mail, return receipt requested, inforniing
them of such violation or violations. Such notice shall be entitled a"Violation Notice.", The
company may remedy violations of subsections (1) through (3) of section 430.036 wit"hin three
(3) da�s of tender of the registered letter bearing the "Violation Notice." Tf the co ,�any fails to
remedy the violafion within three (3) days after tender of the registered letter, pe�alties shall be
assessed in accordance with the provisions in section 430.036 and paragraph (bj��of this section.
Violation of section 430.036, subsections (4) through (7) shall not " subject to remedy
and shall be assessed from the first day of occurrence.
(b) Disputed violation, hearing; findings. The company m�ay ten (10) days of the
tender of written notice as provided for in pazagraph (a), notify th�`cable communications officer
by registered mail that (i) there is a dispute as to whether or no violation has, in fact, occurred
or that a penalty is owed; or (ii) the violarion has been cured a�d all amounts owed have been
paid. Such notice shall specify with particularity the matter,s disputed by the company, and the
basis for any claims made by the company as to support�ny claim that the default has been
cured. `�
�
The cable communications officer shall, u�on receipt of the company's letter, cause the
matter to be referred to the city council for a he�-�'ring if there is a dispute under (i), or the cable
communications officer is not satisfied that tk� cure is complete. A hearing shall be held within
thirty (30) days of receipt of the company'ss'�etter by by the council (or a committee thereo fl, or,
if mutually agreed to by the parties, by �ndependent hearing examiner appointed by the
council to determine if there is reason�believe the company has committed a violation of
section 430.036 or to determine wh� er the violation has been cured. After the hearing and
review of the committee's report 4�` heazing examiner's report, the council shall determine if there
is reason to believe the comp has committed a violafion of section 430.036, and whether the
violation has been cured, and,, all make written findings of fact relative to their determination.
(c) Satisfaction o Penadties. Upon a determination by the council that there is reason to
believe a violation h- aken place or has not been cured (with all amounts owed paid); or in the
event the company ooses not to dispute the fmding of the cable communications officex, the
city directar of t ology and management services shall incunediately make withdrawals
against the lett of credit provided for in the franckuse ordinance in accordance with the
penalties sp ified for such violafions in section 430.036. The city director of technology and
manage t services may continue to make withdrawals without fiu authorization from the
city co cil until the company has satisfactorily remedied tl�e term, condition or provision
�
10
9�-��?
violated.
(C.F. No. 97-53, ? 1&, 2-12-97)
Sec. 430.038. Reports and records.
A company shall fully cooperate in making available at reasonable times
sha11 have the right to inspect and copy, the books, records, maps, plans and oth
applicable to its the Saint Paul system at any time during normal business houks;
shall be produced to the City at a location designated by the City, provided�at,
security necessitate, company may require inspection to take place on a co pan
premises, or such other mutually agxeed location, in accordance with pr�icedures
, and'the ciTy
e�'like materials
these materials
where volume or
y's local
set out in the
franchise. This section shall be read expansively to include information in whatever format
stored. ; y
(b) Each company shall prepaze such reports
operation, construction, maintenance (including manage
ARTICLE IV. 430.04. RIGHTS
Sec. 430.041. Equal opportunity for service.
A company sha11 not deny service, deny access or otherwise discriminate against
subscribers, channel users or general citize�� on the basis of race, color, creed, religion, ancestry,
national origin, sex, affecUonal preferenc�,e; disability, age, mazital status or status with regard to
public assistance. Each company shal�,Eomply at all times with all other requirements of federal,
all executive and administrative orders relating to
�rporated and made a part of this chapter by reference.
state and local laws and regu
nondiscrimination which are
its cable system and the
eof as the city may request.
INDIVIAUALS
Sec. 430.042. Equal opportu�5ty employment.
Each company sha1�'stricfly adhere to the equal employment oppommity requirements of
the federal government�as well as state and locallaws and regulations and sha11 keep a record of
employment statistics,w�hich sha11 be available for public inspection during normal business
hours. ,��
Sec. 430.043. Su�scriber privacy.
No s' nals, including signals of an interactive communications channel, shall be
transmitte from a subscriber ternunal for putposes of monitoring individual viewing patterns or
practice 'thout the express written permission of the subscriber. Neither a company, the city
nor other person shall initiate or use any procedure or device far procuring information or
data om a subscriber's ternunals or terminal by any means without the prior valid authorization
o e affected subscriber. "Valid authorization" sha11 mean written approval from the subscriber
11
y�-�,�7
which shall not have been obtained from the subscriber as a condition of service, except in those
situations in which authorization is needed for billing, and which may be revoked by th�
subscriber at any tune without penalty of any kind whatsoever. The request for such pe , ion
shall be contained in a sepazate document with a prominent statement that the subscri� is
authorizing the pernussion with full irnowledge of its provisions. Such written permission shall
not eatend longer than one (1) yeaz; provided, that the subscriber shall have the option to renew
upon expiration. No penalty shall be invoked for a subscriber's failure to provit�e or renew such
authorization. Such authorization shall be required for each type or classification of signals
transmitted from a subscriber terminal. �
(Ord. No. 17364, § 11, 6-17-86)
Sec. 430.044. Prohibit compilation of subscriber lists for
A company shall not collect, compile or retain subs "ber data except as necessary far
internal business purposes. Neither a company, the city any of their agents or employees
shall, without the specific written authorization of the ected subscriber, provide data
identifying or designating any subscriber to any p other than to the company and its
employees ar agents for internal business use. Thi ha11 include, but not be limited to, lists of the
names and addresses of such subscribers or any 1' ts that identify the viewing habits of
subscribers. Written permission from the subs ber shall not be required for the systems
conducfing systemwide or individually addr sed electronic sweeps far the purpose of verifying
system integrity or monitoring for the p se of billing. Confidentiality of such information
shall be subject to the provisions of this ection.
(Ord. No. 17364, § 12, 6-17-86)
Sec. 430.045. Monitoring
Neither a company, e city nar any of their agents shall tap or monitor, arrange for the
tapping or monitoring of r permit any other person to tap or monitor any cable, line, signal,
input device or subscri �r outlet or receiver for any purpose whatsoever without the prior valid
authorization of the ected subscriber.
ARTICLE V. 430.05. FItANCHISE FEE
Sec. 430.05�. Payment.
a) Each company shall pay to the city a franchise fee of five (5) percent of gross
reve es . Each franchise shall perxnit the Ciry to increase the franchise fee to the maximum that
m be charged consistent with state and federal law, should the federallaw limit change or be
iminated. However, the city shall not increase the franchise fee charged to a company except
after providing that company 90 days advance written notice, and providing that company the
opporiunity to comment on the proposed change within that 90-day period. Payments sha11 be
12
��-a��
made on a quarterly basis. The installment payment for each quarter shall be due no later than
forty-five (45) days after expiration of the quarter when due and shail be made to the city
deparlment of technology and management services, or such other department as the city m y
designate. A franchise may exclude bad debt from gross revenues. S f
(b) A franchise may provide for advance payment of franchise fees. The city'�sha11 use all
advance franchise fees only for cable-related purposes. AII other franchise fees c�llected by the
city shall be utilized prunarily to support the city's administration of the frangtiise ordinauce and
the plauiung and development of cable services and secondarily for depos�t;in the general fund or
for offier such uses as specified by the city. ;
(Ord. No. 17364, § 13, 6-17-86; C.F. No. 92-1374, § 32,
2-12-97)
(c) The franchise fee payment is not a payment in
assessment except as specifically provided in a franchise, or a
ARTICLE VI. 430.06. RATES AND
Sec. 430.061. Rates.
C.F. No. 97-53, § 19,
of any taY, fee ar other
�uired by applicable law.
ADNSTMENT
(a) On or within five days of the ef ecrive date of its franchise (or any renewal or
replacement thereo�, a company shall place �a public file for inspection on and submat to the
city a list of all rates and charges charged thin the City (including late fees), which listing shall
be updated when any rate or charge is cha ged, added or eliminated. Where a list of a11 the
current rates and chazges of the operat�r�are already on file as of the effective date of a renewal
or replacement franchise, that list sha�l be deemed to satisfy the obligation to provide a list within
five days of the effective date of the
(b) Every rate or c�"arge shall be subject to regularion by the city, except as prohibited
by state or federal law.
(c) In cases ere regulafion of a rate or chazge is pemutted but governed by state or
federal law, the city s 1 rea late in confornuty with the applicable law and regulations. The
cable communicati s officer shall have the authority to issue any order, regulation or fmding
permitted or requ'�ed by those applicable regulations including any subsequent amendments,
other than a rat order establishing rates or ordering refunds, which orders sha11 be issued by the
City Council
of
Residential subscriber contracts, if any, may not exceed twelve (12) months
er twelve (12) months in the contract may be terminated without penalTy at the option
subscriber.
No. 17364, § 14, 6-17-86; C.F. No. 93-1829, § 2, 3-30-94)
13
9g-�7�
Sec. 430.062. Request for rate adjustment.
For azeas in which state and federal law perxnit rate and chazge regularion by the city,
company may make application for a revision of the rate schedule at any rime. �
(Ord. No. 17364, § 15, 6-17-86; C.F. No. 93-1829, § 2, 3-30-94)
,-
Sec. 430.063. Procedure for rate adjustment and hearing.
To the extent that the procedure for regulation of a rate or charge is not govemed by
federal or state regulations, the procedure set forth in this section sh�ll apply.
(a) An application for change in a rate or charge,
and chazges shall be filed in accordance with,
section. The application shall be supported,�
indicating that the e�sting rate is inade�uate
l of a schedule or rates
established in this
y statistical and other proof
and unreasonable and that the
proposed changes therein aze required,fo enable the company to render service to
fu1fi11 its obligations under this chapier and to derive a reasonable profit
therefrom. The application shall aYso include a statement of facts, opinions,
substantiating documents and exhibits supporting the change requested.
Notwithstanding the above, Uae specification of procedures in this ordinance does
not prohibit the city and a�ompany from agreeing to a different procedure for
reviewing a particulaz xat�e
(b) The company's petitidn for a rate change shall include the following financial
reports which sh �l��reflect the operations of the Saint Paul system only:
r
(1) Balance sheet;���
�
(2) Income sta
r`
(3) Statemgnt of sources and applications of funds;
(4)
(5)
supporting schedules of expenses, income, assets and other items as may
ed; and
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 a11 reasonable tnnes. The city shall have
access to records of financial transactions for the purpose of verifying burden
rates or other indirect costs prorated to the Saint Paul operafion. The documents
listed above shall include sufficient detail and/or footnotes as may be necessary to
14
9 ���177
(e)
(fl
provide the city with the information needed to make accurate determin�s as
to the financial condition of the system. All fmancial statements shall he certified
as accurate by an officer of the company. The company shall beaz the"burden of
demonstrating the justness, reasonableness and accuracy of the costs.
The City may investigate any rate or charge of the company at any time except as
state or federal law otherwise provides, and may require the company to justify
any rate subject to investigation. If, after investigating rate, the City
determines the rate is not just and reasonable, it may establish the appropriate rate.
The City may order refunds of excess amounts collected from subscribers. .
The council shail consider the following factor,s in approving or disapproving a
rate or charge, and may consider such other factors relevant to the establishxnent
of a rate: ; `�
(1) The ability of the company to xender system services and to derive a
reasonable profit therefrom tyrider the existing rate schedule and under the
proposed rate schedule; �a'
(2) The revenues and profifs derived from system services;
�
,�
(3) The efficiency of tlie company;
(4) The quality
(5) The costs i�
��
(6) The or�gina
service offered by the company;
by the company;
cost of the system less depreciation;
(7) A� rate of return with respect to the cost of borrowing and the rates of
rgturn on investments having similar risks to that of cable
(8)� The extent to which the company has adhered to the terms of this
agreement;
Fairness to city residents, subscribers and users;
(10) Capital eacpenditures by the company in providing updated technology and
services to subscribers; and
�g)
(11) Such other factors as council is required to consider.
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
15
�i� a��
�)
company's goodwili shall be amortized as an expense nor shall a retum be paid on
them. Furthermore, the council will not consider any rate change application ,�
based, in whole or in part, on increased cable system value due to any type ��%/�
transfer or sale.
�:
�
Upon receipt of a request for changes in rates under this section, the city shali
have thirty (30) days within which to determine whether it wishes to�eview more
fully the request for changes. In the event that the city takes no
thirty (30) days, the company may file in the office of the city {
of cable communications a new or amended rates schedule �ylu
�n within
and the office
shall be
effective and may be charged on the tenth day (ar such lat date that the company
sha11 designate on its filing) after its filing and shall cox�tinue in effect unril
approved or denied by resolution or untii deemed app�ved consistent with the
charter. ��1�
6
(Ord. No. 17364, § 16, 6-17-86; C.F. No. 93-1829, § 2, 3-30. 4)
;�
ARTICLE VII. 430.07. APPLICATIC�fNS PROCEDURE
Sec. 430.071. Modification of franchise
(a) Procedure. Following the adoptiori ai�d acceptance of the franchise and except as
otherwise specifically provided herein ar in �e franchise ordinance, all applications by a
company for a modification of franchise, o. gations shall be made and processed in accordance
with the following procedure to the e�e�hat this procedure is not superseded by federal law:
(1) If a compatty seeks, ��a modification, it sha11 file an application for
modification of fra�chise obligations in the offices of cable communications and
ofthe city clerk.�
(2) The city clerl�shall place the application upon the next available city council
agenda. �
(3) Usin� the standards set forth in paragraph (b) of this section, the council shall
� ove or deny the requested modifications within one hundred twenty (12Q)
ys of the filing of said application. Such one-hundred-twenty-day period may be
ea�tended by mutual agreement of the company and the city.
During the period a franchise is in effect, a company may obtain from the city
modifications of the requirements in its franchise:
16
9�-a,��
�
In the case of any requirement for facilities or equipment, including
public, educational or governmental access facilities or equipment„
company demonstrates that: f
�
It is commercially impracticable for the company to comply with
such requirement; and ,'�
The proposal by the company far modification.,of such requirement
is appropriate because of commercial impracticability; or
b. In the case of any such requirement for serv
demonstrates that the mix, quality and level
franchise at the time it was granted will be x
the company
ices required by the
ned after such
modification.
(2) A company may not obtain modification under this section of any requirement for
services relating to public, educational or governmental access.
(3) For purposes of this section, the term�"commercially impracticable" means, with
respect to any requirement applicabl,a a company, that it is commercially
impracticable for company to
change in conditions which is
nonoccurrence of which was �
based. �i
�
y with such requirement as a result of a
d the control of company and the
assumption on which the requirement was
(4) Notwithstanding subsee# on (1), a company may, upon thirty (30) days' advance
notice to the city, reacrange, replace or remove a particular cable service required
by the franchise if:��
.;
a
a. Such se��vice is no longer auailable to company; or
,1
b. SucM service is availabie to company only upon the payment of a royalty
r�iured under Section 801(b)(2) of TiUe 17, United States Code which
�omvanv can document:
1.
2.
Is substantially in excess of the amount of such payment required
on the date of the company's offer to provide such service; and
Has not been specifically compensated for through a rate increase
or other adjustment;
Notwithstanding subsection (1), a company may take such acrions to rearrange a
particulaz service from one (1) service tier to another, or otherwise offer the
service, if the rates for a11 of the service tiers involved in such actions are not
subject to regulation under the Cable Act.
N7
9�' �,��
(Ord. No. 17364, § 17, 6-17-86; C.F. No. 93-1829, § 4, 3-30-94)
ARTICLE VIII. 430.08. TERNIINATION AND TRANSFER OF
Sec. 430.081. Termination and forfeiture.
(a) Termination, substantial breach of terms and conditions. In
and powers retained by the city under the franchise, this chapter or
the right to forfeit and ternunate a franchise and all rights and privi
in the event of a substantial breach of its terms and conditions. A�
company shall include, but shall not be limited to, the following:
idition to all other rights
�vise, the city reserves
of a company thereunder
itial breach by a
(1) Violation of any material provision of the fcanchise or any material rule, order,
regulation or deternunation of the city ma e pursuant to the franchise or this
ordinance; ,
(2) Attempt to dispose of any of the faePlities or property of its cable system to
prevent the ciTy from purchasing,}� as provided for herein;
(3) Attempt to evade any materi�.Yprovision of the franchise ar pracfice any fraud or
deceit upon the city or its s}�bscribers or customers;
(4) Failure to begin or co��ilete system construction or system extension as provided
under the franchise; /
�
(5) Failure to provid `the types or quality of service as required herein;
(6) Failure to res re service after ninety-six (96) consecutive hours of interrupted
service, ex, pt when approval of such interruption is obtained from the city;
��)
�
misrepresentarion of fact in the application far ar negotiation of the
to replenish the fund secured by a letter of credit within tUirty (30) days
final draw by city; and
(9)
Failure to maintain bonds and/or insurance.
(b) No fault of company. The foregoing shall not constitute a ma}or breach if the violation
but it is without fault of a company or occurs as a result of circumstances beyond its
ible control. Circumstances beyond the control of a company shall include, but not be
to, acts of God; strikes, lockouts or other labor disturbances; unauailability of labor or
EE3
�i �-a��
materials; failure of other urilities to perform walkout and make ready and to locate undergro,u,�`d
utilities in a tunely manner; orders or restraints of any kind of the government of the United,�
States or the State of Minnesota or their respective departments, agencies or officials or ax�'y' civil
:
or militazy authority; insurrections, riots; landslides, earthquakes, fires, stonns, droughts; floods;
explosions; breakage or accident to machinery, transmission pipes or canais; or any a;ther cause
or event not reasonably within the control of company and not pro�mately caused,li'y its
negligence_ A company shall not be excused by mere economic hazdship, nor by �iisfeasance or
xnalfeasance of its directors, officers or employees. F ,
(c) Demand for compliance; notice of intent to request
(1) In the event that the city determines that a company has�substantially violated any
provision of its franchise, any nxle or regulation promulgated pursua�f to that franchise or this
chapter ar any applicable federal, state or local law, the city shall n}ake a written demand, by
registered mail, return receipt requested, upon that company that �t remedy such violation and
that continued violations may be cause for termination. The ci shall give a company thirty (30)
days after service of the aforementioned notice to correct th�violation, except as othenvise
provided in this section 430.081(c)(4).
(2) Within that thirty-day period, the com�any must either cure the violation, or
provide satisfactory written proof that a cure canno�e completed within the thirty-day period,
but that the cure is being actively and expeditiousFq pursued, and will be completed within a time
certain. If the violation, breach, failure, refusal br neglect is not fully cured within that thirry
r
(30) day period following written demand; or�f there is not written proof satisfactory to the city
that corrective action has been taken or is b' ing actively and expeditiously pursued so that the
cure will be completed by a time satisfactory to the city; or if the city provides the company
additional time to cure and the compan,y�fails to cure within a time sarisfactory to the city; the
city may place the issue of terminati � of the franchise before the city council.
(3) If the city choose " o place the issue of termination before the city council, a
public heazing shall be held and�the company shall be provided with an opportunity to be heazd
upon written notice, by regis�red mail, return receipt requested, to the company of the cause for
termination, the intent to t�'rminate and the time and place of said public hearing.
(4) �'he city council shall heaz and consider the issue and shall hear any
person interested th�in, and shall determine, in its discretion, whether or not any violation by
the company has o curred. If the council determines that the violation by the company was
within its controJf�and that the company has failed to complete cure the violation, the council
may, by reso�u�ion, declare that the company's franchise be forfeited and terminated. Nothing
herein prev�Yits the city from providing the company with additional opportuniries to cure. The
city coun fl is not required to give the company any opportwuty to cure where fraud and/or
misrep� ntation has been alleged and proved to the council's satisfaction.
(d) Franchise procedures. In addition, a franchise or other agreement with a company
set forth grounds and procedures by which a franchise may be revoked, and the city may
19
R 8����
revoke a franchise foilowing such procedures, and shall not be required to also follow the
procedures specified above.
(e) Judicial proceeding. In the event fhe city council terminates the franchise pursw
this section, the company shall have any applicable statutory period after receiving notice
temiination in which to commence an action, but no more than one hundred twenty (120)
During such period and until a court of competent jurisdiction has decided the matter aneYt
time for appeal has elapsed, the francluse shall remain in full force and effect unless s�ne�
terminated or expired and not renewed in accordance with law. %
(Ord. No. 17364, § 18, 6-17-86)
Sec. 430.082. Franchise renewal. .%
(a) To the extent required by federallaw, requests for cable fr�hise renewal under
the Cable Act wiil be received and reviewed in a manner consistent wi �Section 626 of the
Cable Act, 47 U.S.C. §546. ;�
(b) If neither a Franchisee nor the City activates in a f`' ely manner, or can activate
the renewal process set forth in 47 U.S.C. §546(a)-(g) (includiri�for example, the provisions are
repealed), and except as to applications submitted pursuant t�- �47 U.S.C. §546(h), a renewal
request shall be submitted and evaluated using the same cyit xia as any other request for a
�
franchise, or as required by applicable law. ,�
(c) The city may by resolution adopt p,r`ocedures for conducting any proceedings
required under federal law, including without liiriitation, procedures for presentation of evidence;
and may also by resolution specify the perso�;or entity that will conduct any administrative
hearing that may be required by federalla the city decide that it does not wish to
conduct the proceeding itsel£ In any ca��, however, the final decision to deny or grant renewal
shall remain with the city. „f�
(d) Informal applicat�on for renewal. Notwithstanding the above, a company may
submit a proposal for renewai qf a Franchise pursuant to 47 U.S.C. § 546(h). Such a proposal
may be submitted at any time the City may, after affording the public adequate notice and
opporhxnity far comment,�rant or deny such proposal at any time (including after proceedings
have been commenced,'tr"i accordance with 47 U.S.C. §546(a)).
Sec. 430.083. Ri�t of municipal acquisition.
(a) .`�ery franchise shall provide for the right of municipal acquisition, consistent with
this Sectiaff 430.083.
) Right of first refusal; value. In the event a company forfeits its franchise, or upon
i or other termination of the franchise pursuant to provisions of this chapter or the
ordinance, or at the normal expiration of the franchise term, city sha11 have the right of
�
9 �' �-a ��
first refusal, d'uectly or as an intermediary, to purchase the franchised cable system. The ciTy, �'
may, if it chooses, acquire the cable system and its assets and transfer the system and all it F assets
to a third pariy purchaser; without limitation, the city may enter into such a purchase agr�ement
before acqniriug the cable system and its assets from the company. j
%
If the city elects to purchase a system at the normal expiration of the francTnse term, the
value of the franchise term shall be the fair market value as an ongoing business oncern o£that
system as deteruiuied by a panel of three (3) independent appraisers agreed upon by the city and
the company. Should city and a company fail to agree upon the selecfion of�three (3) independent
appraisers, each shall select one (1) appraiser. The two (2) appraisers so,selected sha11 then select
a third. If the city elects to purchase the system in the event of forfeiture, termination or
revocation prior to the normal eapiration date, the purchase price to�lie paid by the city sha11 be
the company's capitalization cost less depreciation. "Capitalization cost" shall mean the monies
invested for tangible assets, exclusive of intangible assets such�as goodwill or value of the
franchise. The date of valuation shall be no earlier than the day following the date of such
forfeiture, termination or revocation.
(c) Transfer to city. 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 a company, the company sha11
immediately transfer to the city possession and tit3e to all facilities and property, real and
personal, of the cable 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 insizuments of conveyance to city as shall be
necessary forthis purpose.
(d) Arbitration. A franchise
upon the value of cable system, eitt
Arbitration sha11 commence and��ri
430.035. „
(e) Nob
abandoned by a
system in accox�
or a company o�
days and an op�
portions thereof
the City may ��e
part of the �sset
�y provide that, in the event city and company cannot agree
may give notice of a demand to the other for arbitration.
ed according to law and shall be governed by section
the above, if a cable system or any part of a cable system is
ompany during the franchise term, or if a company fails to operate its cable
�nce�With its franchise during any time it is required to operate its cable system,
ier�'`ise terminates its franchise, upon reasonable notice of at least fliirfy (30)
�nity to be heard, the ownership of the cable system or the abandoned
as applicable) in streets or on other public property, or such portion thereof as
ire, shall be conveyed to the city and the city may sell, assign, or transfer all or
of the cable system, or the city council, at its option, may use or dispose of the
system a�'it sees fit. The afFected company shall execute such quit claim deeds and other
nts as may be necessary to transfer the cable system or affected part thereof free and clear
and encumbrances to the city.
( fl Each contract entered into by a company with reference to its cable system or
�ns under its franchise sha11 be subject to the exercise of the rights of the ciTy under this
section 430.083.
21
4��a��
(g) Nothiug in this ordinance or in any respect affects the city's powers of eminent
domain, or its right to exercise these powers with respect to a cable system.
/i
(h) A company may not take any action, other than the assertion of the company's leg�l
rights hereunder, that would interFere with the city's purchase rights hereunder, or take acti�n that
would have the effect of limiting the facilities and equipment available to the city hereunder.
�
'r
(i) By the acceptance of a franchise, each company expressly waive its right ,if any, to
relocation costs that might otherwise be provided by law. ;
(Ord. No. 17364, § 20, 6-17-86) �i�
Sec. 430.084. Foreclosure and receivership.
(a) Upon the foreclosure or other judicial sale of a11 or a sub'stantial part of its cable
system, or upon the termination of any lease covering a11 or a sukistantial part of the cable system,
a company shall notify the city of such fact, and such notificaYion shall be treated as a
notification that a change in control of the company 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. j �
(b) The city council shall have the right to bancel the franchise one hundred twenry (120)
days after the appointment of a receiver, or trus,tee to take over and conduct the business of the
company, whether in receivership, reorganiz�fion, baukruptcy or other action ar proceeding,
unless such receivership or trusteeship shall`have been vacated prior to the expiration of said one
hundred twenty (120) days, or unless: <
(1) Within one hundred twenty (120) days after his election or appointment, such
receiver or trustee sfiall have fully complied with all the provisions of this chapter
and remedied a11.:�1efaults thereunder; and
�
(2) Such receive}�'or hustee, within said one hundred twenty (120) days, sha11 have
executed ari agreement, duly approved by the court having jurisdiction in the
premises; whereby such receiver or irustee assumes and agrees to be bound by
each �d every provision of this chapter and the franchise granted to the company.
Sec. 430.085. Ahandonment or transfer.
(a) AZY�ndonment Notwithstanding and without limiting the provisions of its franchise, a
company s�`a11 not abandon any cable communication service or any portion thereof, without
having gi�ven three (3) months' prior written notice to the city. A company shall not abandon any
cable�°'�mmunication service or any portion thereof without compensating the city for actual
d �'ges resulting to it from such abandonment. For purposes of this section, "service" shall
�n�n the aggregate cable system. A company sha11 not abandon its system, or any portion
ereof without the permission of the city and without compensating the city for actual damage
22
�1 �-� 77
resulting to it from such abandonment.
(b) Transfer:
(1) A franchise shall not be assigned or transferred, either in whole or in pA�t, or
leased, sublet or mortgaged in any manner, whether by sale of assets or trausfer o£control of the
company or its pazents, or otherwise, nor shall title thereto, either legal or equitable or any right,
interest or properry therein, pass to or vest in any person without the prior wriften consent of the
city council, which shall not unreasonably be withheld, and in compliance„with applicable state
rules; provided, however, that no authorization of the council shall be required for any mortgage,
pledge or other encumbrance of this franchise ordinance or a company's cable system as security
for financing purposes, but the mortgage, pledge or other encumbrarice may not allow any person
to succeed to the company's interest in the franchise ar the systeni without the prior approval of
the city; and the terms and conditions of the mortgage, pledge-or other encumbrance must be
subordinate to the terms and conditions of its franchise. '
7
(2) A company shall promptiy notify the city o£�nny actual or proposed change in, or
transfer of, or acquisition by any other parry, of contzol of the company, or any other event
constituting a transfer of the franchise, and shall file� a request far approval of the transfer as
provided herein, containing such information as required therein. 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.�ercised. Without limiting the foregoing, a ten
percent (10%) change or more in the owneYship of company sha11 be presumed to be a change in
control. Every change, transfer or acquisition of control of the company sha11 make the
franchise subject to cancellation unless and until the council shall haee consented thereto, which
consent will not be unreasonably w
(c) The acts described i�X430.085(b)(1)-(2) are collectively referred to as"transfers," and
the entity or entities to whomjtr'�ansfer is to be made is referred to below as the "transferee."
(d)For the purpose�bf determining whether it sha11 consent to such change, transfer or
acquisition of control, except as federal law prohibits it from doing do the city may inquire into
the qualifications of tlfe prospective controlling pariy, and a company shall assist the council in
any such inquiry. Ttie proposed assignee must show financial responsibility as determined by the
city and must agr,ee to comply with all provisions of the franchise. A request for a transfer will
not be granted �yiiless, in light of the record before it, including the transfer applicarion, the
council detern'`fines that:
)�' there will be no adverse effect on the public interest, or the city's interest in the
or franchise;
(2) the transferee will agree to be bound by all the conditions of the franchise and to
all the obligations of its predecessor; and
' (3) any outstanding compliance and compensation issues l�ave been resolved or
preserved to the satisfaction of the city.
23
���� ��
(i) Any proposed transferee shall execute an agreement, in such form as is acceptable to the
city attorney, that it will assume and be bound by all of the provisions, terms and conditions of this cha�
the franchise and amendments or agreements related thereto, and comply with any other conditions
lawfully imposed upon the transfer. f
(e) The consent or approval of the city to any transfer of the company shall xiot constitute
a waiver or release of the rights of the city in and to the streets, and any transfer stiall, by its
terms, be expressly subordinate to the terms and conditions of the franchise and any amendments
or agreements related thereto.
( fl In the absence of extraordinary circumstances, the city will not approve any transfer
or assignment of the franchise prior to substantial completion of any, system construction
required by a franchise.
i
(g) In no event sha11 a transfer of ownership or control be approved without successor in
interest becoming a signatory to the franchise agreement, and%any amendments or agreements
related thereto. „'
(h) An application for approval of a transfez''sha11 be filed with the cable
communications officer at least 120 days prior to the;date the transaction is scheduled to close or
otherwise become effecfive. Each application shalY" contain the following information.
Additional informarion will be provided upon rec}tiiest. An application that does not contain the
information shall be considered an incomplete, application, and need not be acted upon by the
city:
(1)
�2)
(3)
all information and
forms if no longer r
any shareholder
and Exchange C
the effect
pre- and �
under federal law or the equivalent of such
by federal law;
or public filings which have been filed with the Securifies
that discuss the transaction;
:r on system debt and any valuaxion of the system assets
unless disclosure would result in a violation of federal law ;
and �''
(4) a brief '�smmnary of the proposed transferee's planned changes for at least the nea�t
five (,5� years regarding line extension, plant and equipment upgrades, channel
cap�city, expansion or elimination of services, and any other changes afFecting or
enfiancing the perforxnance of the cable system.
(Ord. No.
Sec.
§ 21, 6-17-86; C.F. No. 92-1374, § 33, 9-22-92)
Removal of cable equipment upon termination or forfeiture.
(a) Removal. Upon termination or forfeiture of a franchise, a company shall remove its
24
9 �'-��-� 7
cable system from the streets, alleys and other public places within the franchise area if the city
so zequests in writing. Such request shall be served upon the company's local business by
registered mail, retum receipt requested, and shall give the company a reasonable period of timi
to effectuate such removal. The city may require the company to submit a plan for removal b�
date certain, and require a company to comply with that plan and such other conditions as t}ae
city may reasonably establish to protect the streets and public and private properry, or to�oteci
the city's rights under a franchise. A company shall restore streets and other public property
disturbed by the removal of its cable system to at least as good a condition as existedi
immediately prior to removal. ,
(b) Failure to remove. Should a company faii to remove the aforemen�Yoned equipment as
requested by the ciTy, the city shall have the right to make such removal at�Ykie expense of the
company and the company shall, upon written demand, pay to the city the cost of such work
done or performed by the city.
(Ord. No. 17364, § 22, 6-17-86)
ARTICLE IX. 430.09. GENERAL
Sec. 430.091. Interference with cable service
Neither the owner of any multiple-unit residential dwelling nor his agent or representative
shall interfere with the right of any tenant or l�awful resident thereof to receive cable service,
cable installation ar maintenance from a cable company regulated by and lawfully operating
under a valid and existing cable franchise,}"srsued by the City of Saint Paul.
Sec. 430.092. Gratuities and paymen'ts to permit service prohibited.
Neither the owner of any xriultiple-unit residential dwelling nor his agent or representative
shall ask, demand or receive an,y"'payment, service or gratuity in any form as a condition for
permitting or cooperating witti the installation of a cable service to the dwelling unit occupied by
a tenant or resident requesti � service.
Sec. 430.093. Penalties' and charges to tenants for service prohibited.
.,:'
Neither the,,awner 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 tenant or resident who requests
or receives cable service from a company operating under a valid and existing cable franchise
issued by ttie City of Saint Paul.
Sec. 43D.094. Reselling service prohibited.
No person sha11 resell, without the expressed, written consent of both the company and
25
� �-a, `y7
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. �
Sec. 430.095. Theft of services prohibited.
No person shall establish a drop for reception of services or receive cable
without first obtaiiung the approval of the company.
Sec. �'30.096. Protection of property.
Nothing in these general provisions shall prohibit a person
system facilities conform to laws and regulations and reasonable c
safety, functioning, appearance and value of premises or the con fF
and properry. ,��'
C.�!!iy Documents\St. Paul\ORD430 revised6.doc+
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a�
f' ,
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i ��if.Ti .�Tl• ifr!
ns necessary to protect
and safety of persons
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