HomeMy WebLinkAboutResolution No. 2002-30 RESOLUTION NO. 2002-30
BEING AN ORDER TO CEASE AND DESIST
WI-IEREAS, the City of Columbia Heights, Minnesota (the "City") adopted a cable television fi'anchise
on June 25, 1990, setting forth the terms and conditions under which Teleprompter of Columbia Heights/Hill-
top, Inc. was authorized to construct, operate and maintain its cable system in the City (the "Franchise"); and
WHEREAS, as a result of numerous transfers of ownership and control, the Franchise is currently held
by MediaOne North Central Communications Corp., d/b/a AT&T Broadband; and
WHEREAS, AT&T Broadband must comply with the terms of the Franchise; and
WHEREAS, in accordance with § 11.117(8) of the Franchise, the City supervises and enforces the
Franchise on a day-to-day basis.
NOW, THEREFORE, the following is resolved:
Findings
1. AT&T Broadband sent a new Customer Service Agreement ("CSA") to subscribers in the City.
2. The new CSA contains several modifications to the older agreement and was sent out as a "bill stuffer"
to subscribers in the City.
3. The new CSA unilaterally attempts to impose a mandatory arbitration provision governed by the Federal
Arbitration Act (the "Arbitration Clause").
4. The Arbitration Clause, among other things, purports to eliminate certain rights otherwise enjoyed by
subscribers, most importantly the fight to damages other than actual damages and the fight to bring a class
action lawsuit.
5. The new CSA states that acceptance of its terms, including the Arbitration Clause, will be presumed
where there is continued use of service and that, ifa subscriber finds the terms of the new CSA unacceptable,
the only recourse available to the subscriber is to cancel service.
6. The terms of the CSA were not negotiable and were offered on a "take it or leave it" basis.
7. Pursuant to the terms of the Franchise, AT&T Broadband is required to comply with all laws affecting
the cable system.
8. Pursuant to the terms of the Franchise, AT&T Broadband may be assessed a penalty of $50.00 per day
for failing to comply with any Franchise provision.
Conclusions
The CSA is invalid for the following reasons:
(a) subscribers did not knowingly, voluntarily, and intelligently waive their Constitutional
right to a jury trial;! and
(b) the contract is unconscionable under Minnesota contract law as a contract of adhesion.
Order
Based on the foregoing Findings and Conclusions, the City Council for the City of Columbia Heights hereby
enters the following orders:
1. AT&T Broadband is hereby ordered to immediately cease and desist the implementation, imposition and
enforcement of the Arbitration Clause in the new CSA.
2. AT&T Broadband is hereby ordered to immediately notify the Assistant to the City Manager of AT&T
Broadband's intent to fully comply with this Order.
3. AT&T Broadband is hereby ordered to do the following within thirty (30) days of the effective date of
this Order: (i) modify its CSA by bringing its dispute resolution policy into total compliance with applicable
law; (ii) provide the City with an opportunity to review and approve the revised dispute resolution policy before
it is issued to subscribers; (iii) inform the Assistant to the City Manager of the manner in which subscribers will
be notified of the revised dispute resolution policy; and (iv) issue a revised dispute resolution policy to
subscribers.
4. Failure to comply with this Order may result in a franchise violation, the immediate issuance of a notice
of violation to AT&T Broadband, and the invocation of appropriate remedies.
5. This Order shall be effective immediately upon its approval by the City Council.
Passed this 22"a day of April 2002 by the Columbia Heights City Council.
Offered by:
Seconded by:
Roll Call:
Attest:
(~atricia Muscovitz, Deputy City ~lerk
Nawrocki
Szurek
Aye: Peterson, Szurek, Wyckoff,
Williams, Nawrocki
I
Se___~e Brady v. United States, 397 U.S. 742, 748 (1970); also see State v. Johnson, 354 N.W.2d 541,543 Minn. App. 1984).