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HomeMy WebLinkAboutOrdinance 982Please keep on Display through December 9, 1981. ORDINANCE NO. 982 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, PERTAINING TO CABLE COMMUNICATIONS The City of Columbia Heights does ordain: Chapter 11 of Ordinance No. 853, City Code of 1977, passed June 21, 1977, which is currently reserved, shall read as follows, to-wit: TABLE OF CONTENTS 11.101 11.102 11.103 11.103(1) 11.103(.2) 11.103(3) 11.103(4) 11.103(5) 11.103(6) 11.103(7) 11.103(8) 11.103(9) 11.103(10) 11.103(11) 11.103(12) 11.103(13) 11.103(14) 11.103(15) 11.103(16) 11.104 11.105 11.1o5(1) 11.1o5(2) 11.1o5(3) 11.1o5(4) 11.105(5) 11.105(6) 11.105(7) 11.1o5(8) 11.105(9) 11.1O5(lO) 11.1o5(11) 11.1o5(12) 11.1o5(13) 11.1o5(14) 11.1o5(15) 11.1o5(16) 11.1o5(17) 11.1o5(18) TITLE OF ORDINANCE DEFINITIONS AUTHORIZATION, DURATION, TERMINATION, CANCELLATION, RENEWAL, TRANSFER, AND ABANDONMENT Authorization Duration Non-Exclusive Grant Police Powers Written Notice Ownership, Control; Transfer of Ownership and Control Cancellation, Termination and Expiration Cancellation, Termination Procedure Condemnation Right to Purchase Removal of System Continuity of Operation Receivership Foreclosure Renewal or Extension Abandonment SERVICE AREA AND EXTENSION OF SERVICE DESIGN AND CONSTRUCTION System Design Institutional Network Signals Via Satellite Interconnection System Construction Schedule Erection of Poles Installation of Wires and Cables Trimming of Trees Construction Codes Unreasonable or Hazardous Interference Requests for Removal or Change Restoration of Property and Reimbursement Emergency Removal of Plant Protection of Facilities Emergency Override Standby Power Two-Way and Interactive Capability Channel Capacity PAGE 1 1 4 4 4 5 5 6 8 9 10 10 11 12 12 13 13 14 14 15 15 15 15 15 16 17 17 17 18 18 19 19 2O 2O 21 21 21 21 11.106 11.106(1) 11.1o6(2) 11.106(3) 11.107 11.108 11.109 11.109(1) 11.109(2) 11.109(3) 11.110 11.111 11.112 11.112(1) 11.112(2) 11.112(3) 11.112(4) 11.113 11.113(1) 11.113(2) 11.113(3) 11.113(4) 11.113(5) 11.114 11.115 11.116 11.117 11.117(1) 11.117(2) 11.117(3) SYSTE2q SERVICES Minimum Channel Services Other Services Changes in Minimum Channel Services VIDEO PRODUCTION FACILITIES, STAFF AND BUDGETS FOR ACCESS PROGRAMMING INTERACTIVE SERVICES SUBSCRIBER CONTRACTS, RATES Term of Subscriber Contracts Subscriber Rates Prohibition of Discriminatory or Preferential Practices DISCONNECTION REFUNDS TO SUBSCRIBERS AND USERS FRANCHISE FEE, TAXES AND ASSESSMENTS Franchise Fee Payment of Franchise Fee Operation Following Termination or Cancellation Taxes and Assessments INDEMNIFICATION, INSURANCE, BONDS, LETTERS OF CREDIT General Indemnification Insurance Bonds Letter of Credit INTERRUPTION OF SERVICE AND COMPLAINT PROCEDURE BOOKS AND RECORDS OF GRANTEE TESTING MISCELLANEOUS PROVISIONS Action by State or Federal Authorities Severability Grantee Will Not Contest Validity of Franchise 21 22 24 25 25 26 27 27 27 29 29 30 30 30 31 31 31 32 32 32 33 34 35 38 40 42 42 42 43 44 11.117(4) 11.117(5) Il.Il?(6) 11.117(?) ll.ll?(S) 11.118 Il.liS(i) 11.118(2) 11.118(3) 11.118(4) Interpretation by City of Franchise Subscriber Privacy Criminal Penalty Compliance with City Charter Continuing Supervision and Regulatory Jurisdiction JOINT SYSTEM, ACCEPTANCE, INCORPORATION OF GRANTEE'S PROPOSAL, EXHIBITS 44 44 45 45 46 46 46 46 46 47 AN ORDINANCE, INCLUDING EXHIBITS, GRANTING A FRANCHISE TO TELEPROMPTER OF COLUMBIA HEIGHTS/HILLTOP, INC. TO OPERATE AND MAINTAIN A CABLE COMMUNICATION SYSTEM IN THE CITY OF COLUMBIA HEIGHTS AND RULES GOVERNING OPERATION OF SAME FINDINGS In the review of the Grantee's application, and as a result of public hearings, the City Council makes the following findings: (1) The Grantee's technical ability, financial condition, legal qualifications and character were considered and approved in a full public hearing affording reasonable notice and a reasonable opportunity to be heard. (2) The Grantee's plans for constructing and operating the system were considered and found to be adequate and feasible in a full public hearing affording reasonable notice and a reason- able opportunity to be heard. (3) The franchise complies with the existing franchise standards of the Minnesota Cable Communications Board. (4) The franchise is non-exclusive. 11.101 This ordinance shall be known and cited as the Cable Communications Code. 11.102 Definitions For purposes of this code, the following terms, phrases and words shall have the meaning herein given. The words "shall" and "will" are mandatory and "may" is permissive. Words not defined shall be given their common and ordinary meaning. Il.lo2(1) "Activated Channel" means a video channel which is equipped to carry programming. 11.102(2) "Additional Service" means any communications service other than basic service, provided over its System by the Grantee directly or as a carrier for its subsidiaries, affiliates, or any other person engaged in communications services, including, by way of example, but not limited to, burglar alarm, data or other electronic intelligence transmission, facsimile reproduction, meter reading, pay cable, home shopping, and FM service. 11.102(3) "Automated Services" means programming or information displayed in an alpha numeric mode. -1- 11.1o2(~) 11.102(~) 11.102(6) 11.102(7) 11.102(8) 11.102(9) 11.1O2(lO) 11.1o2(11) 11.102(12) 11.102(13) 11.102(14) "Basic Service" means the delivery by Grantee to all sub- scribers, of service provided by Grantee covered by the regu- lar monthly charge paid by all subscribers, excluding additional services for which a separate charge is made. "Board" shall mean the Minnesota Cable Communications Board and any legally appointed, designated or elected agent or successor. "Channel" means a band of frequencies, which for television is 6 megahertz wide and which for data, FM or other signals, is of various band widths commensurate with the requirements of the specific service. "City" means the City of Columbia Heights, a charter City, in the State of Minnesota. "Class IV Cable Communications Channel" means a signaling path provided by a cable communications system to transmit signals of any type from a subscriber terminal to another point in the cable communications system. "Converter" means an electronic device which converts signals to a frequency not susceptible to interference within the television receiver of a Subscriber, and which, by an appropriate channel selector, also permits a Subscriber to view all signals delivered at designated dial locations. "Education Access Channel" means a television channel on the system which is reserved pursuant to the terms of this agreement for use exclusively by local educational institu- tions. "FCC" shall mean the Federal Communications Commission, and any legally appointed, designated or elected agent or suc- cessor. "Grantee" means Teleprompter of Columbia Heights/Hilltop Inc., a Minnesota corporation. "Grantee's proposal" means that certain document dated May 6, 1981, entitled, "Application for Cable Communication System Franchise for the Cities of Columbia Heights and Hilltop, Minnesota", consisting of three bound volumes and a letter of clarification dated July 9, 1981, which were signed by Grantee and are on file with the City Clerk. "Gross Receipts" means all revenue derived from or attribu- table to the System directly or indirectly by Grantee, its affiliates, subsidiaries, or any persons or entities in which Grantee has a contractual relationship. -2- 11.102(15) "Interactive Capacity' means the ability of the subscriber to send a class IV signal from a home terminal to the hem/end or other central point in the System. 11.1o2(16) 'Leased Channel" means a television channel on the System which is reserved by this agreement for carriage of program material provided by persons leasing channel time from the Grantee. 11.102(17) "Local Government Access Channel" means a television channel on the System which is reserved pursuant to the terms of this agreement for use exclusively by local government. 11.1o2(18) "Local Origination" means video programming produced and/or cablecast by Grantee, who shall be solely responsible for its content. 11.102(19) "Lockout Device" means a mechanism which will enable the subscriber to prevent the reception on his individual receiver of specific programs of the channels cablecasting pay cable services. 11.102(20) "Origination Programming" means programming imported by satellite, video or film format that is cablecast by the Grantee who is solely responsible for its content. 11.102(21) "Pay Cable" means the delivery over the system of audio- visual signals in intelligible form to subscribers for a fee or charge, in addition to the charge for basic service. 11.102(22) "Person" means persons, firms, corporations, or associations and any other legally recognized entity. 11.102(23) "Public Access Channel" means a television channel on the System which is reserved by this agreement for use exclusive- ,ly by any member of the general public or any non-commercial organization, without charge, on a first-come, first-served, nondiscriminatory basis. 11.102(24) "Regional Channel" means a segment of the electromagnetic spectrum provided by cable communications systems or an interconnection entity operating within the Twin Cities metropolitan area for programming on the standard VHF channel 6. 11.102(25) "Streets" shall mean the surface of, and the space above and below, any public street, road, highway, freeway, lane, path, public way, alley, court, sidewalk, boulevard, parkway, drive or any easement or right of way now or hereafter held by the City which shall, within its proper use and meaning in the sole opinion of the City, entitle Grantee to the use thereof for the purpose of installing or transmitting over poles, -3- 11.102(26) wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other property as may be necessary to the System. 'Subscriber" means any person or entity receiving any service offered by the Grantee herein. 11.102(27) 'System" shall mean a system of cables, ~rlres, lines, con- duits, towers, waveguides, microwave and laser beams, and any associated converters, equipment or facilities designed and constructed for the purpose of producing, receiving, amplifying and distributing by audio, video and other forms of electronic or electric signals to and from subscribers and locations in the City. 11.102(28) 11.102(29) "Tapping" means observing or monitoring a communications serv- ice by any means for any purpose whatsoever. "Two Way Capability" means the System's ability to carry and return video, audio, and data communications. 11.102(30) 11.103 "User" means any person utilizing a System Channel for pur- poses of production and/or transmission of material as contrasted with receipt thereof in a subscriber capacity. Authorization, Duration, Termination, Cancellation, Renewal, Transfer, and Abandonment 11.103(1) Authorization The City hereby grants to the Grantee a nonexclusive franchise to construct, operate and maintain a System on and under its streets in accordance with, and pursuant to, the terms, conditions, provisions and limitations of this Section 11.1, et. seq. 11.103(2) Duration The franchise shall commence on the effective date of this ordinance and shall continue for a period of ten years, unless sooner terminated as provided in this code. 11.103(3) Non-Exclusive Grant Nothing in this ordinance shall affect the right of the City to grant to any other person a franchise or right to occupy and use the streets or any part thereof for the cons truction~ operation and maintenance of a System within the City. The Grantee shall not take a legal position contesting, or other- wise contest in any manner, the City's right or decision to grant such other franchise or to authorize such use of the streets or any part thereof. Nothing contained in this sub- -4- 11.103(4) 11.103(5) division shall prohibit the Grantee from appearing and being heard on any application for the grant of such franchise or right. Police Powers (A) All rights granted pursuant to this franchise are sub- Ject to the police power of the City to adopt and enforce ordinances. Any conflict between the provisions of this franchise and any other present or future lawful exercise of the police powers of the City shall be resolved in favor of the City. This Franchise shall not affect the obligation of all users of the System to comply with all licensure and permit requirements of the City. (c) Nothing in this ordinance shall be in preference or hindrance to the right of the City to perform or carry on any public works or public improvements of any kind. In the event the System interferes in any manner with the construction, maintenance or repair of any public works or improvement, the Grantee shall, at its own cost and expense, protect or relocate its system or any part thereof, as directed by the City. The Grantee shall repair or replace any City property damaged by it. (D) The City shall have the right to install and maintain, free of charge, upon the poles and within underground pipes of Grantee any wires and fixtures desired by the City. Written Notice Ail notices, reports and demands required to be in writing pursuant to this Franchise shall be deemed to be given when delivered personally to any office of Grantee or the City Manager of Columbia Heights or forty-eight (48) hours after it is deposited in the U.S. Mail as registered or certified mail, addressed to the party to which notice is being given, as follows: If to City: City Manager City of Columbia Heights 590 - 40th Avenue Northeast Columbia Heights, Minnesota 55421 If to Grantee: Teleprompter Corporation 888 7th Avenue New York, NY 10106 Attention: Vice President and General Counsel -5- 11.103(6) Ownership, Control; Transfer of Ownership and Control None of the following shall directly or indirectly own, operate, control or have a legal or equitable interest in the Franchise: (1) A television broadcasting station whose predicted Grade B contour, computed in accordance with sec- tion 73.684 of the Federal Communications Commis- sion's rules and regulations, overlaps in whole or in part the service areas of the System (e.g., the area within which the System is serving subscrib- ers); or (2) A national television network; or (3) A television translator station licensed to the municipality of such System; or (4) A telephone company within its local exchange area, · unless a proper and timely waiver is obtained from the Federal Communications Commission; or (5) A publisher and/or owner of a newspaper company and the newspaper company within the primary market area, as defined by the Audit Bureau of Circula- tion, served by the newspaper; or (6) A radio or television broadcast station, broad- casting from within the Twin Cities metropolitan area as designated in Minn. Stat. §473.121, subd. 4. The word "control" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. The word "interest" as used herein includes, in the case of corporation, common officers, or directors and par- tial, as well as total, ownership interests represented by ownership of voting stock. In applying the provisions of this rule to the stock- holders of a corporation which has more than 50 stock- holders: (a) Only those stockholders need be considered who are officers or directors or who directly or indirectly own 1% or more of the outstanding voting stock. -6- (b) Stock o~nership by an investment company as defined in U.S.C. section 80a-3, commonly called a mutual fund, need be considered only if it directly or indirectly o~ns 3% or more of the outstanding voting stock or if officers or directors of the corporation are repre- sentatives of the investment company. Holdings by investment companies under common management shall be aggregated. If an invest- ment company directly or indirectly owns voting stock in an intermediate company which in turn directly or indirectly owns 50% or more of the voting stock of the corporation, the investment company shall be considered to own the same percentage of outstanding shares of such corporation as it owns of the inter- mediate company; provided, however, that the holding of the investment company need not be considered where the intermediate company owns less than 50% of the voting stock, but offi- cers or directors of the corporation who are representatives of the intermediate company shall be deemed to be representatives of the investment company. (e) In cases where record and beneficial ownership of voting stock is not identical--for example, bank nominees holding stock as record owners for the benefit of mutual funds, brokerage houses holding stock in street name for the benefit of customers, trusts holding stock as record owners for the benefit of designated parties--the party having the right to deter- mine how the stock will be voted will be con- sidered to own it for the purposes of this sect ion. (B) Any sale or transfer of the Franchise, including a sale or transfer by means of a fundamental corporate change, requires the written approval of the City. Any sale or transfer of the Franchise shall be subject to the provi- sions of 4 MCAR §4.100. The parties to the sale or transfer of the Franchise shall make a written request to the City for its approval of a sale or transfer of the Franchise. The City shall reply in writing within thirty (30) days of the request and shall indicate its approval of the request or its determination that a public hearing is necessary if it determines that a sale or transfer of the Franchise may adversely affect the company's subscribers. The City shall conduct a public hearing on the request within thirty (30) days of such determination. -7- 11.103(7) (c) Notice of any such hearing shall be given 14 days prior to the hearing by publishing notice thereof once in a newspaper of general circulation in the area being served by the Franchise. The notice shall contain the date, time and place of the hearing and shall briefly state the substance of the action to be considered by the City. Within thirty (30) days after the public hearing, the City shall approve or deny in writing the sale or transfer request. (D) Any sale or transfer of the Franchise, including a sale or transfer by means of a fundamental corporate change, requires notification to the Board by the City. The notification shall be accompanied by the written cer- tification of the transferee that it meets all of the requirements with respect to technical ability and financial stability demanded of the original franchisee. The City shall cause to be sent to the Board a copy of all public documents related to sale or transfer of the Franchise. (E) The parties to the sale or transfer of a franchise, only within the inclusion of a cable communications system in which at least substantial construction has commenced, shall be required to establish that the sale or transfer of a franchise only will be in the public interest. (F) For purposes of this provision, fundamental corporate change means the sale or transfer of all of a majority of a corporation's assets, merger (including any parent and its subsidiary corporation), consolidation, or creation of a subsidiary corporation. (G) Sale or transfer of stock in a corporation so as to create a new controlling interest in a cable com- munication system shall be subject to the requirements of 4 MCAR §4.100 and 4 MCAR ~4.150. The term "controlling interest" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. Cancellation, Termination and Expiration The City shall have the right to cancel this franchise for the following reasons: (A) Failure by the Grantee to comply with any provision of this agreement, or any order, direction or permit issued by the City pursuant to any provision; or the failure to comply with the notice requirements of this Code; -8- Il.103(8) (B) Failure by the Grantee to comply with any rule or regu- lation promulgated by, or ordinance adopted by the City, which is consistent with any provision of this Code; (c) Failure by the Grantee to comply with, or attempt to evade, any provision of this Code, or any order, direc- tion, or permit issued by the City concerning any provi- sion of this Code; (D) Failure by the Grantee to file and maintain any bond, security fund, or insurance policy in an amount required by this Code; The Grantee's sale, lease, assignment, encumbrance or mortgage of the franchise or transfer of control of the System without the consent of the City; (F) Failure by the Grantee to adhere to the construction schedule provided under this Code or delay in offering basic subscriber service; (G) Any attempt to commit, or the commission, by the Grantee, any fraudulent or deceitful practice; (H) Failure by the Grantee to pay to the City any sum due under this Code; (I) Failure by the Grantee to receive a certificate of con- firmation from the Minnesota Cable Communications Board; (J) Failure by Grantee to obtain all necessary pole right agreements within one (1) year following the adoption of a Cable Communications franchise by the City; (K) If, the System or any part thereof, is inoperative for thirty (30) days out of any consecutive twelve month period; (L) Failure to renegotiate franchise fees pursuant to Section 11.112. Cancellation, Termination Procedure (A) If the City determines that the Grantee has violated any of the provisions of 11.103(7) the City shall give writ- ten notice of such cause for termination to Grantee, and of it's intention to terminate the franchise. (B) The Grantee shall have thirty (30) days from the date of receipt of such notice to cure the cause for ter- mination. -9- (c) If the Grantee fails to cure the cause for ter~lnation within said thirty (30) day period, the City may elect to terminate the franchise. Grantee shall be provided with an opportunity to be heard at a public hearin~ before the City Council of Columbia Heights prior to any decision to terminate the franchise. (D) In the event that the City determines to terminate the franchise, the Grantee shall have a period of thirty days, beginning the day following the date of the conclusion of the public hearing at vhich the ter- mination of the franchise is considered, vithin ~hich to file an appeal with the Board. During such thirty day period, and until the Board determines the appeal, if an appeal is taken, the franchise shall remain in full force and effect, unless the term thereof sooner expires. If the Board approves of the action of the City, the franchise shall terminate immediately; if the Board disapproves of the action of the City, the franchise shall remain in full force and effect during the terms thereof, unless sooner terminated in accord- ance with law or rules of the Board or the terms of the franchise agreement. Any such appeal to the board is a contested case to which the board is not a party. 11.103(9) Condemnation In the event the System is taken or condemned pursuant to law, the franchise shall, at the option of the City, cease and terminate on the date of the vesting of title pursuant to such condemnation or taking. l~.~03(lO) Right to Purchase (A) Upon cancellation, revocation, forfeiture, termination or normal expiration of the franchise term, the City shall have the right to purchase the System. Such right shall be exercised by giving written notice to Grantee within six months after the occurrence of any such event. (B) If the City elects to exercise its right to purchase the System, the following shall then apply: (1) The purchase price of the System to be paid by the City shall be as follows: (a) If the termination is due to the normal expiration of the franchise term, the purchase price shall be the fair market value of the System as a going business concern, with appropriate consideration for depreciation using generally accepted accounting prin- ciples. Goodwill shall not be included in the purchase price of the System. (2) (b) If the franchise is cancelled, revoked, for- feited, or terminated by the City for failure of franchisee to comply with the terms of this Code the purchase price shall be the original cost of the System less depreciation. Depreciation shall be calculated using Grantee's method of depreciation for income tax purposes. The City shall receive the entire System as defined in this franchise ordinance together with all records necessary for the operation of the System wherever located. (3) The Grantee shall promptly execute all documents necessary to transfer title to the City, and shall assign all contracts, leases, licenses, permits and other rights necessary to maintain continuity of service to the public. (4) The Grantee shall cooperate with the City to operate the System for a temporary period not to exceed two years, in maintaining continuity of serv- ice. (5) (6) Ail liabilities and accounts payable as of the date the City acquires title to the System shall remain the exclusive responsibility of the Grantee. Ail accounts receivable accrued as of the date the City acquires title to the System shall remain the property of the Grantee. (c) If Grantee offers the System for sale, all offers received shall promptly be provided to the City. Prior to Grantee accepting any offer, the City shall have the right to purchase the System according to the terms of the offer. 11.103(11) Removal of System (A) Upon cancellation, revocation, termination, forfeiture, or normal expiration of the franchise term the City shall have the right to require the Grantee to remove, at Grantee's expense, all or any portion of the System within the City. Grantee shall, at its own expense, refill any excavation made by it, and shall leave all streets and other property within the City in as good a -11- 11.103(12) 11.103(13) condition as prior to Grantee's removal of the System. Grantee shall not affect, alter or disturb in any way electric, telephone, or other utility, cables, wires or attachments belonging to City or another franchisee. City shall have the right to inspect and approve the condition of streets and other property within the City after removal. Ail letters of credit, bonds, insurance, indemnity and liquidated damages provisions of the franchise shall remain in full force and effect during the entire period of removal. (B) If such removal is not commenced within thirty days following written notice of City's demand for removal, or if such removal is not completed within six months of such notice, the City, at its sole option, may perform such removal and collect the cost thereof from the Grantee. The cost of such removal by the City shall be recoverable from the letters of credit, bonds, insurance, indemnity and liquidated damages provisions of the franchise. Continuity of Operation Upon cancellation, revocation, or termination of this Franchise or upon the expiration of this franchise, the City, at it's option, may direct the Grantee to operate the System for the account of the City for a period up to one year. The Grantee shall comply with such direction. The City shall pay the Grantee the actual expenses incurred in operating the System. Receivership (A) The City shall have the right to cancel this franchise one hundred twenty days after the appointment of a receiver, or trustee to take over and conduct the busi- ness of the Grantee, whether in receivership, reorgani- zation, bankruptcy, or in any other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of the one hundred twenty day period, or unless: (1) within one hundred twenty days after his election or appointment, the receiver or trustee shall have fully complied with all provisions of this code and remedied all defaults thereunder; and the receiver or trustee, within one hundred twenty days, shall have executed an agreement, duly approved by the court having Jurisdiction, whereby the receiver or trustee assumes and agrees to be bound by each and every provision of this franchise. -12- 11.103(14) Foreclosure 11.103(15) The Grantee shall notify the City upon the foreclosure or o~her Judicial sale of all or a substantial part of the System. Notification shall be treated as a notification that a change in control of the Grantee has taken place, and the provisions governing the consent of the City to any change in control of the Grantee shall apply. Renewal or Extension (A) The initial franchise period shall be for a period of ten years. (B) After the franchise has been in existence five years, the City shall conduct an investigation and evaluation of the Grantee and the System. Upon receipt of the results of the investigation and evaluation, the City Council, may, at its sole discretion grant an extension of the franchise terms for a period of five years following the expiration of the initial ten year period. If the City Council elects to grant such an extension, it shall notify Grantee in writing and Grantee shall have thirty days to accept or reject in writing the offer of extension. If Grantee accepts the offer of extension, negotiations shall then commence between City and Grantee concerning the terms of the franchise during the five year extension period. (c) Grantee may apply for renewal of this franchise by making application to do so not later than twelve months prior to the expiration of the franchise. Said applica- tion shall be on forms provided by the City. If appli- cation for renewal is not made as herein set forth the franchise shall terminate at the end of the franchise period. Any renewal of the franchise shall not be for more than 10 years. Upon receipt of an application for renewal, the City shall, within six months, determine whether the Grantee has satisfactorily performed its obligations under the franchise. In doing so, the City shall consider tech- nical developments and performance of the System, programming, services offered, cost of services, compliance with provisions of the franchise ordinance, and annual reports made by Grantee to the City and FCC. (~) If the City determines a renewal of the franchise to ~e in the public interest, it shall so notify the Grantee within six months of receipt of the application for renewal. Negotiations shall then commence between the -13- 11.103(16) 11.104 City and the Grantee regarding the terms of the franchise during the renewal period. Any decision by the City concerning extension or renewal of the franchise shall be in accordance with the then existing rules of the FCC, the Board, the City and all other applicable laws. Nothing in this Code shall be construed to require extension or renewal of the franchise. (¢) The acceptance of any extension or renewal of the franchise by Grantee shall be in writing and be within thirty days after Council action granting such extension or renewal. No extension or renewal shall be binding upon the City until its acceptance by the Grantee. Such acceptance shall be construed to be an acceptance of, and consent to, all the terms, conditions, and limita- tions contained in the ordinance granting the franchise as well as of the provisions of the City Charter. Abandonment At least three months prior written notice to the City and the Minnesota Cable Communications Board shall be given by Grantee prior to the abandonment of any cable communications service or any portion thereof. In the event of abandonment of any cable communications service or portion thereof the Grantee shall compensate the City for damages resulting from such abandonment. The amount of damages resulting from aban- donment due the City shall be determined solely by the City, and shall be recoverable from the letters of credit, bonds, insurance, indemnity and liquidated damage provisions of the franchise. An abandonment of any portion of the System as determined in the sole discretion of the City shall be a ter- mination of the franchise. Service Area and Extension of Service (A) Service Area The Grantee shall construct, operate and maintain the System so as to provide service to all areas of the City. (B) Extension of Service The Grantee shall extend cable to developing areas simultaneously with electric power and telephone utili- ties. -14- 11.105 11.I05(1) Design and Construction System Design The Grantee shall provide a system with a sir~le headend feeding a single-cable subscriber network and a separate mid- split institutional network. Both networks shall utilize MMz equipment, fully activated for two-way transmission. 11.105 (2) Institutional Network The Grantee shall design and construct the system so that at least the following locations may originate and transmit video, audio and data signals on any subscriber or institu- tional network: the fire and police station, the Columbia Heights Public Library, the fire department training classroom, all public and private elementary and secondary school buildings, the Department of Public Works, the Columbia Heights City Hall, Parkview Villa, Murzyn Hall, Huset Park Bandshell, High School Stadium, Columbia Heights Municipal Service Center, Municipal Liquor Stores within the City, Columbia Heights' city park activity centers, community centers and other locations as may be designated by the City. Grantee further agrees to include North Park Elementary School in the institutional network at such time as allowed by law. All locations mentioned shall each receive a modulator at no cost, except that the municipal liquor bar and park activity centers shall share the use of two modulators. Grantee shall provide a separate 16-mile institutional net- work, with 38 activated downstream channels and 16 activated upstream channels for use by city government, schools, and other local Columbia Heights institutions and businesses. Locations of the institutional network facilities are shown on "Institutional Network Facilities Locations" listing which is attached hereto as Exhibit A and incorporated by reference. 11.105(3) Signals Via Satellite The Grantee shall provide satellite earth terminals for the purpose of receiving signals from at least three com- munications satellites. 11.105(4) Interconnection The Grantee shall extend its facilities to the City's bound- aries to interconnect its System by microwave or cable with any other cable systems operating in an area adjacent to the City without charge to the City or any subscriber or user. -15- 11.105(5) The interconnection shall be accomplished according to the methods and technical standards approved by the Board. System Construction Schedule (A) The Grantee shall apply for all necessary governmental permits, licenses, certificates and authorizations within 90 days of granting of the franchise. The Grantee shall complete construction and installation of the System so as to offer basic and additional subscriber services to all residents, institutions, and commercial establishments within 12 months following the Grantee's receipt of the Certificate of Confirmation from the Board. The construction schedule shall comply with the plan for construction in two six-month periods, designated as Phase I and Phase II on the "Construction Schedule by Mileage" chart and "Construction Schedule Map", which are attached hereto as Exhibits B & C and incorporated by reference. The Grantee's obligation to construct and install the system according to this schedule shall not be affected should litigation be brought against Grantee or City by a third party. (B) (c) The Grantee shall design, construct and maintain the System meeting the standards and practices promulgated by the Federal Communications Commission (FCC Rules Part 76, Subpart K) which are incorporated by reference or those standards as set forth in Form I, pages 27a - 27h of Grantee's proposal dated May 6, 1981. The Grantee shall furnish the City with progress reports detailing construction progress, indicating its compliance with the construction schedule, and spec- ifying the reasons for any delay therein. (D) Approval of Proposed Construction No construction, reconstructions or relocation of the System, or any part thereof, within the streets shall be commenced until written permits have been obtained from the proper City officials. In any permit so issued, such officials may impose any condition, restriction or regulation as is necessary for the purpose of protectin~ any structures in the streets and for the proper restoration of such streets and structures, and for the protection of the public and the continuity of pedestrian and vehicular traffic. The Grantee shall give the City written notice of proposed construction at -16- least ten days prior to construction. Should Grantee fail to comply with this section, Grantee shall be assessed the sum of $200.00 as liquidated damages for each day of construction undertaken by Grantee in viola- tion of this section. (E) Proof of Performance (F) The System shall conform to the specifications for ini- tial proof of performance tests and ongoing performance tests, test equipment, methods and frequency of test equipment calibration, forms and method of recording field data and permanent record keeping as set forth in Form I, pages 29a - 29d, and "Annual Proof of Performance Tests Manual" appended to Form I of Grantee's proposal, dated May 6, 1981. The Grantee shall furnish the City with progress reports indicating in detail the progress in, and the areas of, construction of the System. The reports shall be fur- nished at monthly intervals, or as may be determined by the 'City. The first report shall be delivered to the City within one month from the date of execution of this ordinance. 11.105(6) Erection of Poles The Grantee shall not erect any pole in the City without prior consent of the City and only as necessary to fill small gaps in the existing aerial utility system. The Grantee shall lease pole space and facilities for all aerial construction. 11.105(7) Installation of Wires and Cables Ail cables and wires shall be installed parallel with existing telephone and electric wires. Multiple cable con- figurations shall be arranged in parallel and bundled, with due respect for safety and engineering considerations. Ail installations shall be underground in those areas of the City where public utilities providing either telephone or electric service are underground at the time of installations. In areas where both telephone and electric utility facilities are installed above ground, the Grantee may place its serv- ices underground without additional charge. 11.1o5($) Trimming of Trees The Grantee may, with prior consent of the City, trim trees upon and overhanging streets, alleys, sidewalks, and all other public places so as to prevent the branches of trees from coming in contact with the wires and cables of the -17- Grantee. All trimmin~ shall be done under the superVision and direction of the City and at the expense of Grantee. 11.105(9) Construction Codes (A) The Grantee shall construct, install, operate, and main- tain the System in strict compliance with all laws, ordinances, codes, rules and regulations affectin~ the System. The City reserves the right to enact any ordi- nance or issue any rule or regulation with respect to the operation, installation, maintenance, or construc- tion of the System. (B) The Grantee shall construct, install, operate, and main- tain the System and any facilities employed in connec- tion therewith in strict compliance with the provisions of the National Electrical Safety Code as prepared by the National Bureau of Standards, the National Electrical Code of the National Board of Fire Underwriters, the Bell Telephone System's Code of Pole Line Construction, any standards issued by the Federal Communications Commission or other Federal or State regulatory agencies in relation thereto, the Occupational Health and Safety Act, State Building Code, and any other applicable codes. (c) The Grantee shall construct any tower in strict compliance with the standards contained in Structural Standards for Still Antenna Towers and Supporting Structures, EIA Standards RS-222-A, and any other appli- cable code. Further, any tower constructed by Grantee shall conform to height requirements contained in the City ordinance. (D) Grantee's construction practices shall conform to those practices set forth in the "CATV Cable Construction Manual" appended to Form H of Grantee's proposal dated May 6, 1981. 11.105(10) Unreasonable or Hazardous Interference (A) The Grantee shall not install or construct any part of its System upon, over or under public and private prop- erty in such a manner as to cause either a hazardous or unsafe condition or an unreasonable interference with the use thereof by any person. In the event the Grantee's System creates a hazardous or unsafe condition or an unreasonable interference with property, the Grantee, at its own expense and upon request of the City, shall remove its System or any part thereof from the property in question. If the Grantee fails to remove that part of the System creating a hazardous or -18- 11.105<11) 11.105<12) unsafe condition or an unreasonable interference ~rlth property within 10 days following written notice to remove by City, the City may remove same at Grantee's expense. The cost of such removal by the City shall be recoverable from the letters of credit, bond, insurance, indemnity and liquidated damages provisions of this franchise. All wires, conduits, cables, and other property and facilities of the Grantee shall be so located, constructed, installed and maintained as not to endanger or unnecessarily interfere ~rlth the usual and customary trade, traffic and travel upon the streets and public places of the City. The Grantee shall keep and maintain all of its property in good condition, order and repair, so that the same shall not menace or endanger the life or property of any person. The City shall have the right to inspect and examine at any reasonable time the property owned or used, in whole or in part, by the Grantee. The Grantee shall keep accurate maps and records of all of its facilities and furnish copies of such maps and records as requested by the City. Said maps shall indicate the location of all facilities of Grantee within the City. Requests for Removal or Chan~e The Grantee shall, on the request of any person holding a building permit, temporarily raise or lower its wires to per- mit the moving of the building. The Grantee shall be given not less than ten working days notice of any move con- templated to arrange for temporary wire changes. Restoration of Property and Reimbursement The Grantee shall, upon completion of any work requiring the opening of any street or public place, restore the same, including the paving and its foundations, to as good a condition as formerly, and in a manner and quality approved by the City and shall exercise reason- able care to maintain the same thereafter in good con- dition. If the Grantee shall fail to perform the work promptly, to remove all dirt and rubbish and to put the street or public place back in good condition, the City shall have the option of providing Grantee written notice that Grantee has 10 days to place the street or public place in good condition. If Grantee fails to do so within 10 days the City shall have the right to put the street or public place back into good condition at the expense of the Grantee, and the Grantee shall, upon demand, pay to the City the cost of such work done or -19- performed by the City, together with an additional sum as liquidated damages to be determined by the City. (s) In the event of disturbance of any private property by the Grantee, it shall, at its own expense and in a manner approved by the owner, replace and restore such private property in as good condition as before the work causing the disturbance was done. In the event the Grantee fails to perform the replacement or restoration, the owner shall have the right to do so at the sole expense of the Grantee. Payment by the Grantee to the owner for replacement or restoration shall be immediate upon demand by the owner. All requests for replacement or restoring of private property as may have been disturbed must be in writing to the Grantee. The Grantee shall have ten days following receipt of such written notice to replace or restore the private prop- erty. Failure to do so within the ten day period shall be grounds for the owner of the property to restore or replace the property at Grantee's expense. Ail subscriber constracts shall set forth the right of the subscriber to restore or replace private property disturbed by Grantee following the ten day notice period. 11.105(13) Emergency Removal of Plant (A) If, at any time, in case of fire or disaster in the City, it shall become necessary in the Judgment of the City to cut or move any of the wires, cables, ampli- fiers, appliances, or appurtenances thereto of the Grantee, such cutting or moving shall be done, and any repairs rendered necessary thereby shall be made by the Grantee. (B) Whenever the City shall undertake any public improvement which affects cable communications equipment, it shall, with due regard to reasonable working conditions, direct the Grantee to remove or relocate its wires, conduits, cables and other property located in said street, right of way, or public place. The Grantee shall relocate or protect its facility at its own expense. The City shall give the Grantee reasonable notice of the undertaking of public improvements which affect the Grantee's cable communications equipment. 11.105(14) Protection of Facilities Nothing contained in this section shall relieve any person, company or corporation from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while performing any work connected with grading, regrading, or changing the line of any street or 11.105(15) 11.105(16) public place or with the construction or reconstruction of any sewer or water system. Emergency Override The Grantee shall provide an audio and video emergency alert override system including the provision of equipment to the official or officials designated by City to activate the system. Grantee shall provide at no additional cost to subscriber an audio or visual alarm unit which will alert subscribers to an emergency situation whether or not the television set is turned on. Standby Power The Grantee shall provide equipment capable of providing standby power to the headend, earth station and studio for 48 hours following an outage of power. The Grantee shall pro- vide standby power for home terminals used in providing security-service. 11.105(17) 11.105(18) 11.106 Two-Way and Interactive Capabilit~ (A) The Grantee shall design, construct and maintain the System with activated capacity to provide interactive c ommun ica t ions. (B) The Grantee shall design, construct and maintain the System serving residential and institutional subscribers to accommodate interactive data communications. The total System transmission time shall be less than one- tenth of a second. (c) The Grantee shall initially activate the 5-30 MHz fre- quency spectrum of the subscriber network, and shall provide equipment at the headend and to subscribers to support the interactive services as described in Section 11.108. Channel Capacity The Grantee shall construct the subscriber network so that 52 downstream channels and the equivalent of 4 upstream channels are initially activated. System Services The Grantee shall provide as a minimum those services pro- posed in Grantee's application, as shown in the "Summmry of -21- 11.106(1) Services as Allocated to Channels' which is attached hereto as Exhibit D; and "Summary of F.M. and Audio Services" which is attached hereto as Exhibit E and incorporated by reference. Minimum Channel Services (A) Local Origination The Grantee shall cablecast a minimum of 40 hours par week of programming, of which 20 hours per week shall be produced locally, and 20 hours per week shall be obtained from other sources. The Grantee shall provide two full-time staff members for its local origination effort, and will provide a two-camera color studio with editing facility, a two camera color van, and a master control facility. Ail facilities will be available for access at times determined in the operating rules to be developed by Grantee and the City or its designate. These facilities shall be supplied with the equipment shown in the Grantee's letter of 9/28/81 and accom- panying 15 pages specifying local program production equipment and facilities, a copy of which is attached hereto as Exhibit G. Grantee shall provide a minimum operating budget as shown for the following years: Year 1 $32,000, Year 3 $56,000, Year 5 $65,000, Year 10 $96,000. The total capital investment for the equipment described above shall be a minimum of $224,000 in Year 1. (B) Access Channels The Grantee shall provide to each of its subscribers who receive all, or any part of, the total services offered on the system, reception on at least one specially designated noncommercial public access channel available for use by the general public on a first come, non- discriminatory basis; at least one specially designated access channel for use by local educational authorities; at least one specially designated access channel available for local government use; and at least one specially designated access channel available for lease on a first come, nondiscriminatory basis by commercial and noncommercial users. The VHF spectrum shall be used for at least one of the specially designated noncommer- cial public access channels. Ail residential subscrib- ers who receive all or any part of the total servie~ offered on the system shall also receive these four access channels plus the regional channel on all tiers of service at no additional charge for service or installation; no charges shall be made for channel time or playback of prerecorded programming on at least one -22- of the specially designated noncommercial public access channels required by this subdivision, provided, however, that personnel, equipment, and production costs may be assessed for live studio presentations exceedin~ five minutes in length. Charges for such production costs and any fees for use of other public access chan- nels shall be consistent with the goal of affording the public a low-cost means of television access and shall be subject to the approval of the City. Whenever the specially designated noncommercial public access channel, the specially designated education access channel, the specially designated local govern- ment access channel, or the specially designated leased access channel is in use during 80 percent of the week- days (Monday-Friday), for 80 percent of the time during any consecutive 3 hour period for six weeks running, and there is demand for use of an additional channel for the same purpose, the Grantee shall then have six months in which to provide an additional specially designated access channel for the same purpose. The Grantee shall establish rules pertaining to the administration of the specially designated noncommercial public access channel, the specially designated educa- tional access channel, and the specially designated leased access channel. The operating rules established by the Grantee governing the specially designated non- commercial public access channel, the specially designated educational access channel, and the specially designated leased access channel required in this sec- tion shall be filed with the Minnesota Cable Communications Board within 90 days after any such charr- nels are put into use. The Grantee shall consult with the City or its designate prior to filing the rules with the Board. The Grantee shall provide a religious access channel on all tiers, and a medical/health and youth access chan- nels on its mini-basic, basic and interactive services (tiers 2, 3 and 4). (C) Regional Channel The Grantee shall designate VHF Channel 6 as the uniform regional channel. Until the channel becomes opera- tional, the designated VHF Channel 6 may be utilized by the Grantee as it deems appropriate. Use of time on the regional channel shall be made available without charge. -23- (D) Service to Institutions The Grantee shall install and provide at least one service outlet and appropriate converter for the basic service at no charge to the fire and police station, the Columbia Heights Public Library, the fire department training classroom, all public and private elementary and secondary school buildings, the Department of Public Works, the Columbia Heights City Hall, Parkview Villa, Murzyn Hall, Huset Park Bandshell, High School Stadium, Columbia Heights Municipal Service Center, Municipal Liquor Stores within the City, Columbia Heights' city park activity centers, community centers and other loca- tions as may be designated by the City. The Grantee shall provide one portable VTR/camera to the Columbia Heights High School. Grantee further agrees to provide service to North Park Elementary School at such time as allowed by law. (E) Miscellaneous Required Services (1) .Off the Air Programming The Grantee shall transmit or distribute to all subscribers within the City, the programs of all television broadcast stations whose broadcast tower is presently located within the seven county metro- politan area. These stations shall appear on the same numerical channel as their transmitted chan- nel. If new broadcast towers are erected in the seven county metropolitan area, the Grantee shall use its best efforts, complying with FCC must carry rules, to transmit and distribute the programs of the television broadcast stations using the new towers. 11.106(2) Other Services (A) Automated Services The Grantee shall provide automated programming including but not limited to color weather radar, national and state newswires, a program guide, a classified ads service, a community bulletin board, local and state news, and transportation information on the channels and tiers as shown in Exhibit D. The Grantee shall supply the City, Columbia Heights Public Library, Columbia Heights Communications Center and School District Superintendent with a character generator at no cost for originating and programming messages on the System. -24- Pay-Cable The Grantee shall make available two pay services as set forth in Exhibit D to subscribers of its mini-basic, basic and interactive services. The Grantee shall make available nine pay services as set forth in Exhibit D to subscribers of its basic and interactive services. The Grantee shall make available special programs on a pay- per-view basis to subscribers of its interactive serv- ice. (C) Lockout Device The Grantee shall make available lockout devices to subscribers at no charge. (D) Origination Programming The Grantee shall provide origination programming as set forth in Exhibit D to subscribers of its Mini-basic, Basic and Interactive services; (E) FM & Audio Service The Grantee shall provide to subscribers of its mini- basic, basic and interactive services an FM and audio service, including but not limited to local FM stations and shortwave stations, and audio access, pay simulcast, ethnic access, and talking book services. 11.106(3) Changes in Minimum Channel Services All changes in automated services, pay cable, origination programming and FM and audio as shown in Exhibits D and E shall be made only with the express authorization of the City Council or its designate. Should any services contained in Exhibits D and E become unavailable, Grantee shall provide an equivalent available service to be approved by the City Council or its designate. 11.107 Video Production Facilities, Staff and Budgets for Access Programming Minimum Facilities The Grantee shall make readily available for public use at least the minimal equipment necessary for the production of programming and playback of prerecorded programs for the spe- cially designated noncommercial public access channel. The Grantee shall also make readily available, upon need being shown, the minimum equipment necessary to make it possible to record programs at remote locations with battery operated -25- 11.108 portable equipment. Need shall be determined by subscriber petition. The petition must contain the signatures of at least 10 percent of the subscribers of the system~ but in no case more than 500 nor fewer than 100 signatures. The Grantee shall make available to access users the two- camera color studio with editing facility, the two-camera color van and the master control as described in Section ll.106(1)(A) at times determined in the operating rules to be developed by the Grantee and the City or its designate. In addition, Grantee shall provide two portable VTR/cameras, and an audio studio for access use. These facilities will be supplied with equipment shown in the Grantee's letter of 9/28/81 and accompanying 15 pages specifying local program production equipment and facilities, a copy of which is attached hereto as Exhibit G. The total capital investment for the portable VTR/cameras and audio studio shall be a minimum of $27,700 in Year 1. Capital for access and local origination equipment replacement in Year 10 shall be a minimum of $118,000. Maintenance budgets for access and local origination equipment shall be a minimum of $5,000 in Year 1, $2,000 in Year 3, $8,000 in Year 5 and $13,000 in Year 10. Minimum Staff The Grantee shall provide a minimum of at least two full- time staff persons for facilitating access programming. Staff assistance and training for access producers will be provided at no charge. Rates for non-commercial use of the facilities and training shall be set forth in Exhibit F and incorporated by reference. Interactive Services The Grantee shall offer subscribers a home security system including fire detection and medical alert options. The security system must be designed to operate so that the first signal is sent to an intermediary who will verify that the alert is a true emergency prior to notifying the appropriate emergency service. The Grantee will provide at system activation a full-channel videotext information retrieval service, equipment for subscribers to send data messages to the system and for interactive education. -26- 11.109 Il.lO9(1) 11.109(2) Subscriber Contracts, Rates Term of Subscriber Contracts Residential subscriber contracts shall not exceed twelve months in duration, unless after twelve months, the contract may be terminated by the subscriber at any time at his option with no penalty to the subscriber. Subscriber Rates (A) Rates for subscribers shall be those set forth in "Proposed Rates", which is attached hereto as Exhibit F and incorporated by reference. No rates shall be increased for a minimum of 30 months from the effective date of this franchise. (B) Should Grantee desire an increase in its rates, Grantee shall file an application with the City Manager of the City of Columbia Heights which application shall be sup- ported by proof that the existing rate schedule is in- adequate and unreasonable and that the proposed increase is required to enable Grantee to fulfill its ob]/gation under the franchise and to enable Grantee to derive a reasonable profit therefrom. Such proof shall include, but not be limited to, the following financial reports, which shall reflect the operations of the System only: (1) Balance Sheet; (2) Income Statement; (3) Cash Flow Statement; (4) Statement of Sources and Applications of Funds; (5) Detailed Supporting Schedules of Expenses, Income Assets, and other items as may be required; (6) Statement of Current and Projected Subscribers and Penetration; (7) Such other data as the City may require. The Grantee's accounting records applicable to the System shall be available for inspection by the City and its representatives at all reasonable times. The City shall have access to records of financial transactions for the purpose of verifying burden rates or other indirect costs pro-rated to the System operation. The -27- (c) (D) (E) documents listed above shall include sufficient detail and/or footnotes as may be necessary to provide the City with the information needed to make accurate deter- minations as to the financial condition of the System. All financial statements shall be certified as accurate by an officer of the Grantee. Within 60 days followini the filing by Grantee of an application for a rate increase with the City Hanager of Columbia Heights, the City shall conduct a public hearing to consider the proposed rate increase. The City will publish one notice of said hearing at least 10 days prior to the hearing date in the official newspaper of the City. Grantee shall notify the public through providing notice for one week, each day between 7 p.m. and 9 p.m. on 2 channels of the purpose, of the date, place and time of the hearing. Any interested person may file written comments on the proposed rate increase with the City Council of Columbia Heights. After the conclusion of the public hearing, the City will have 90 days within which to make its determination with respect to the proposed rate increase. The City in it's discretion may do one of the following: (1) Approve the proposed rate increase; (2) Approve a rate increase but at levels different than proposed in Grantee's application; (3) Determine that no rate change shall be allowed; (4) Determine that the rate schedule of Grantee shall be decreased. In reviewing a proposed rate change the City may con- sider at least the following factors: (1) The ability of the Grantee to render System serv- ices and to derive a reasonable profit therefrom under the existing rate schedule and under the pro- posed rate schedule; (2) The revenues and profits derived from System services; (3) The efficiency of the Grantee; (4) The quality of service offered by the Grantee; -28- (5) The original cost of the System less depreciation under a reasonable and acceptable depreciation policy; (6) A fair rate of return with respect to the cost of borrowing and the rates of return on investments having similar risks to that of providing cable communication services; (7) The cumulative average rate of return forecasted by the Grantee when seeking the franchise. This cumu- lative average rate of return may be adjusted by actual economic conditions such as the percentage variance of the experienced prime rate with the level of the prime rate assumed by the Grantee when seeking the franchise; (8) The extent to which the Grantee has adhered to the terms of the ordinance; (9) Rates currently fixed in cable television franchi- ses for comparable service areas; (10) Capital expenditures by Grantee in providing updated technology and service to subscribers. The City Council shall not consider any valuation Based upon this franchise or the Grantee's good will and these items of value shall neither be amortized nor shall a return be paid on them. Ail costs for the review of an application for a rate change shall be paid for by Grantee upon demand of the City. 11.109(3) Prohibition of Discriminatory or Preferential Practices Grantee shall make the services or facilities available to all persons within the City on an equal basis. 11.110 Disconnection In the event any subscriber fails to pay a properly due monthly subscriber fee, or any other properly due fee or charge, the Grantee may disconnect the delinquent subscriber's outlet. The Grantee shall not disconnect a delinquent subscriber's service outlet until forty five days following the due date of the delinquent fee or charge and shall include ten days written notice to a subscriber of its intent to disconnect service. After disconnection and upon payment of the delinquent fee and of a reconnection fee, the Grantee shall promptly reinstate a subscriber's cable serv- ice. The Grantee shall not charge any fee for disconnecting service. The Grantee may require the maintenance of a -29- security deposit in cases where a subscriber has been discon- nected for Just cause within the preceding three years. The amount of the security deposit shall be equal to two months basic service charge, and will be payable in advance of serv- ices being restored. Any advance payment shall be con- sidered a security deposit, and may be retained by Grantee for a maximum of three years. The security deposit shall be refunded to the subscriber, without interest, after three years or when the subscriber's service is terminated. 11.111 Refunds to Subscribers and Users (A) If the Grantee fails to provide upon request of a subscriber any service then being offered, the Grantee shall promptly refund all security deposits or other advance payments paid for the service in question by said subscriber. (B) In the event a subscriber terminates any monthly service by reason of the Grantee's failure to render the service in accordance with the franchise, the Grantee shall refund an amount equal to the product of the installa- tion charge paid, the reconnection charge paid, and the fraction of the prepaid period in which service will not be received. (c) In the event a subscriber terminates any monthly service prior to the end of a prepaid period, the Grantee shall refund the pro rata portion of any security depost or other advance payment as of the date of said termination using the number of months as a basis. 11.112 Franchise Fee, Taxes and Assessments 11.112(1) Franchise Fee (A) Throughout the term of the franchise, commencing on the effective date of the ordinance, Grantee shall pay the City an aggregate amount equal to five percent of the Grantee's gross receipts from operations within Columbia Heights from whatever source whether direct or indirect through subsidiaries, affiliates, persons or entities in which the Grantee has a financial interest or with which the Grantee has a contractual relationship for the sharing of receipts. (~) The City and the Grantee by acceptance of the franchise, agree that the franchise fee will not interfere with the effectuation of federal regulatory goals in the field of cable television and that the fee is appropriate in light of the City's planned regulatory program and the System contemplated by the ordinance. The Grantee shall 11.112(2) ~1.112(3) 11.112(4) support and assist the City in demonstrating to the FCC that the franchise is consistent with such Federal stan- dards and is otherwise appropriate, as indicated. (c) The Grantee, upon acceptance of the franchise agrees that the franchise fee shall continue to be paid regardless of whether the franchise fee standards of the FCC are lowered. If the FCC increases the range of franchise fees that may be permitted under its standards or exercises no Jurisdiction with respect to such fees, the City may elect to renegotfate the franchise fee without regard to the time limitation contained therein, but in no event shall the renegotiated fee be less than the 5% referred to in section ll.l12(A). Failure of Grantee to renegotiate in good faith pursuant to this provision shall be grounds for termination of the franchise at the option of the City. Payment of Franchise Fee (A) Within thirty (30) days after the end of each calendar quarter, the Grantee shall report for the preceding calendar quarter in such detail as the City may require its gross receipts from all System services from what- ever sources and shall remit therewith all amounts due under section 11.112(1). (B) (c) In the event any payment is not made on or before the applicable date fixed in Section 11.112(2)(A), interest thereon shall apply from its due date at the rate of one and one half percent per month. All payments due the City shall be made to the Department of City Clerk - Treasurer. Operation Following Termination or Cancellation In the event the Grantee continues the operation of any part or all of the System beyond the cancellation or expiration of this franchise, it shall pay to the City the compensation set forth in this franchise at the rate in effect at the time of such cancellation or expiration, and in the manner set forth in this franchise, together with all taxes it would have been required to pay had its operation been duly authorized. Taxes and Assessments Payments of compensation made by the Grantee to the City pur- suant to the provisions of the franchise shall not be con- sidered in the nature of a tax or assessment but shall be in addition to any and all taxes and assessments which are now or hereafter required to be paid. -31- 11.113 11.113(1) Indemnification, Insurance, Bonds, Letters of Credit General 11.113(2) Rights of City pursuant to indemnification, insurance, bonds, and letters of credit pursuant to the franchise, are in addi- tion to all other rights the City may have pursuant to the franchise or any other ordinance, rule, regulation or law. Indemnification (A) The Grantee shall, throughout the term of this franchise, at its sole cost and expense, indemnify, defend and hold harmless the City, its officers, boards, agents and employees against all liability, damages, costs, claims including but not limited to expenses for legal charges and disbursements by the City in connec- tion therewith, incurred by the City in connection with: (~) Damage to persons or property, in any way arising out of or through the acts or ommissions of Grantee, its servants, agents or employees or to which Grantee's negligence shall in any way contribute; (2) Any claim for invasion of privacy, defamation of any person, firm or corporation, violation or infringement of any copyright, trademark, trade name, service mark or patent or of any other right of any person, firm, or corporation; (3) Grantee's failure to comply with the provisions of any federal, state or local law, ordinance, statute or regulation applicable to Grantee or the System. If suit is brought or threatened against the City, either independently or jointly with Grantee, or with any other person or municipality, Grantee, upon notice given by City, shall defend City at the sole cost of Grantee, and if Judgment is obtained against City, Grantee shall indemnify City and pay such Judgment with all costs and satisfy and discharge said judgment. (c) City reserves the right to cooperate with Grantee and participate in the defense of any litigation by its own counsel. Grantee shall pay upon receipt of written demand from City, all expenses incurred by City in defending itself with regard to any matters in this sec- tion. These expenses shall include, but not be limited to, attorney's fees, and the reasonable value, as deter- mined by City, of services rendered by City or it's employees, agents or representatives. -32- 11.113(3) Insurance (A) By acceptance of the franchise, Grantee specifically agrees that it will maintain throughout the term of the franchise, liability insurance issued by a company authorized to do business in this State covering its obligations of indemnification provided for in this franchise in the minimum amount of: (1) $500,000 for property damage to any one person; (2) $2,000,000 for property damage in any one act or occurrence; (3) $1,000,000 for personal injury to any one person; (4) $2,000,000 for personal injury in any one act or occurrence; $1,000,000 for damages resulting in claims for .invasion of privacy, defamation, violation or infringement of any copyright, trademark, trade name, service mark or patent. Such insurance shall be with a company acceptable to City and shall otherwise be in form and substance accept- able to City. Such insurance policy with written evi- dence of payment of required premiums shall be filed and maintained with the City Manager during the term of the franchise. The above minimum amounts shall be changed from time to time by Grantee as requested by City. Grantee shall immediately give notice to City of any threatened or pending litigation. (c) Neither the provisions of this section nor any damages recovered by City shall be construed to, or shall, limit the liability of Grantee. (D) No recovery by City of any sum by reason of the Letter of Credit or Bond required in the Franchise shall be any limitation upon the liability of Grantee to City under the terms of this section, except that the sum so received by City from such Letter of Credit or Bond shall be deducted from a recovery under this section, if for the same act or occurrence. (E) All insurance policies maintained pursuant to this Franchise shall contain the following endorsement: "It is hereby understood and agreed that this insurance policy may not be cancelled nor the intention not to renew be stated until one hundred twenty (120) days -33- after receipt by City, by registered mail, or written notice of such intention to cancel or not to renew.' 11.113(4) Bonds (A) At the time the franchise becomes effective, the Grantee shall file with the City Manager, and shall maintain during the construction period of the System, and until Grantee has liquidated all of its obligations with the City, the following bonds: (B) (1) A labor and material payment bond in the sum of $1,000,000, guaranteeing payment by the Grantee of claims, liens and taxes due to the City which arise by reason of the construction, operation or main- tenance of the Cable Communications System. A faithful performance bond running to the City in the penal sum of $1,000,000 conditioned upon the faithful performance of the Grantee of all the terms and conditions of the ordinance and upon the further condition that, in the event the Grantee shall fail to comply with any law, ordinance, rule or regulation governing this franchise, there shall be recoverable Jointly and severally from the prin- cipal and surety of the bond any damage or loss suffered by the City as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of property of the Grantee, plus costs and reasonable attorney's fees up to the full amount of the bond. The rights reserved by the City with respect to the bond are in addition to all other rights the City may have under the franchise or any other law. Following the completion of all construction con- templated by this franchise, the City may require the Grantee to file with the City Manager and to maintain throughout the terms of this franchise, the bonds up to the amounts listed below: (1) A labor and material payment bond in the sum of $500,000 guaranteeing payment by the Grantee of claims, liens and taxes due to the City which arise by reason of the construction, operation or main- tenance of the Cable Communications System. (2) A faithful performance bond runnin$ to the City in the penal sum of $500,000 conditioned upon the faithful performance of the Grantee of all the terms and conditions of the ordinance and upon the further condition that in the event the Grantee shall fail to comply with any law, ordinance, rule -34- or regulation governing the franchise, there shall be recoverable Jointly and severally from the prin- cipal and surety of the bond any damage or loss suffered by the City as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of property of the Grantee plus costs and reasonable attorney's fees up to the full amount of the bond. (c) The rights reserved by the City with respect to the bond are in addition to all other rights the City may have under the franchise or any other law. (D) The bonds shall be subject to the approval of the City and shall be in full force and effect at all times until the Grantee has liquidated all of its obligation w/th the City. (E) The bonds shall contain the following endorsement: wit is hereby understood and agreed that this bond ~ay not 'be cancelled until 120 days after receipt by the City Manager, by registered mail, return receipt requested, of a written notice of intent to cancel or not to renew." 11.113(5) Letter of Credit (A) At the time of acceptance of this franchise, Grantee shall deliver to the City an irrevocable and uncon- ditional Letter of Credit, in form and substance accept- able to and subject to approval of the City, from a National or State bank approved by City, in the amount of $50,000.00. (s) The Letter of Credit shall provide that funds will be paid to City, upon written demand of City, and in an amount solely determined by City in payment for penalties charged pursuant to paragraph C of this sec- tion, in payment for any monies owed by Grantee pursuant to its obligations under the franchise, or in payment for any damage incurred as a result of any acts or omissions by Grantee pursuant to the franchise. (c) In addition to recovery of any monies owed by Grantee to City or damages to City as a result of any acts or omission by Grantee pursuant to the franchise, City in its sole discretion may charge to and collect from the Letter of Credit the following penalties: (1) For failure to complete System construction in accordance with Grantee's initial service area -35- plan, unless City approves the delay, the penalty shall be Two Hundred Dollars ($200.00) per day for each day, or part thereof, such failure occurs or continues. (2) For failure to provide data, documents, reports, information or to cooperate with the City during an application process or System review, the penalty shall be Fifty Dollars ($50.00) per day for each day, or part thereof, such failure occurs or con- tinues. (3) For failure to comply with any of the provisions of this franchise for which a penalty is not otherwise specifically provided pursuant to this paragraph C, the penalty shall be Fifty Dollars ($50.00) per day for each day, or part thereof, such failure occurs or continues. (4) For failure to test, analyze and report on the per- formance of the System following a request by the 'City, the penalty shall be Fifty Dollars ($50.00) per day for each day, or part thereof, that such failure occurs or continues. (5) For failure by Grantee to modify the System or to provide additional services within forty-five (45) days after required by City following a periodic review or renegotiation session the penalty shall be Two Hundred Dollars ($200.00) per day for each day or part thereof that such failure occurs or continues. (6) Forty-five (45) days following notice from City of a failure of Grantee to comply with construction, operation or maintenance standards, the penalty shall be Two Hundred Dollars ($200.00) per day for each day, or part thereof, that such failure occurs or continues. (7) For failure to provide the services Grantee has proposed, including but not limited to the imple- mentation and the utilization of the access chan- nels and the making available for use of the equipment and other facilities to City, the penalty shall be One Hundred Dollars ($100.00) per day for each day or part thereof that such failure occurs or continues. (s) For failure to replace or restore private property as required by Section 11.105(12)(B) of the ordi- nance, the penalty shall be the actual cost of -36- (D) (~.) restoring or replacing the private property disturbed by Grantee. (9) Each violation of any provision of this franchise shall be considered a separate violation for which a separate penalty can be imposed. Whenever City finds that Grantee has violated one or more terms, conditions, or provisions of this franchise, a written notice shall be given to Grantee informing it of such violation. At any time after three (3) days following notice, City may draw from the Letter of Credit all penalties and other monies due City. Whenever a penalty has been assessed, Grantee may, within ten (10) days of notice, notify City that there is a dispute as to whether a violation or failure has, in fact, occurred. Such notice by Grantee to City shall specify with particularity the matters disputed by Grantee. (1) City shall hear Grantee's dispute at the next regu- larly scheduled Council meeting. City shall supplement the Council decision with written find- ings of fact. (2) Upon a determination by City that no violation has taken place, City shall refund to Grantee without interest all monies drawn from the Letter of Credit by reason of the alleged violation, less all costs of Grantee's appeal. If said Letter of Credit or any subsequent Letter of Credit delivered pursuant hereto, expires prior to fif- teen (15) months after the expiration of the term of this franchise, it shall be renewed or replaced, during the term of this franchise to provide that it will not expire earlier than fifteen (15) months after the expiration of this franchise. The renewed or replaced Letter of Credit shall be on the same form and with a bank authorized herein and for the full amount stated in paragraph A of this section. If City draws upon the Letter of Credit, or any sub- sequent Letter of Credit delivered pursuant hereto, in whole or in part, Grantee shall replace the same within ten (10) business days and shall deliver to City a like replacement Letter of Credit for the full amount stated in Paragraph A of this section as a substitution of the previous Letter of Credit. -37- If any Letter of Credit is not so replaced, City may draw on said Letter of Credit for the whole amount thereof and hold the proceeds, without interest, and use the proceeds to pay costs incurred by City in performing and paying for any or all of the obligations, duties and responsibilities of Grantee under the franchise that are not performed or paid for by Grantee pursuant hereto, including attorneys' fees incurred by the City in so performing and paying. The failure to so replace any Letter of Credit may also, at the option of City, be deemed a default by Grantee under the franchise. The drawing on the Letter of Credit by City, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. (~) The collection by City of any damages, monies or penalties from the Letter of Credit shall not affect any other right or remedy available to City, nor shall any act, or failure to act, by City pursuant to the Letter of Credit, be deemed a waiver of any right of City pur- suant to this franchise or otherwise. (J) The Letter of Credit shall contain the following endorsement: "It is hereby understood and agreed that this letter of credit shall not be cancelled by the financial institu- tion, nor the intention not to renew be stated until 30 days after receipt by the City, by registered mail return receipt requested, of a written notice of such intention to cancel or not to renew.' 11.114 Interruption of Service and Complaint Procedure (A) (~) The Grantee shall put, keep and maintain all parts of the System in good condition throughout the term of the franchise. Service to Subscribers shall not be shut off or interrupted by Grantee except when necessary, and then only during periods of minimum use of the System. Unless such interruption is unforseen or immediately necessary, Grantee shall give 48 hours notice thereof to affected Subscribers. Ail costs incurred in repairing System shall be borne by Grantee. If service is interrupted for more than 24 hours, Subscribers shall be credited on a pro rata basis for such interruption. In all cases, the cause of interruption of service shall be removed and remedied by Grantee as promptly as possible. Grantee shall maintain an office in the City, or other location as approved by the City Council, which shall be -38- (c) (D) (~) (F) open during normal business hours and in no event less than from 9:00 a.m. - 5:00 p.m., Honday - Friday exclu- sive of legal holidays. Further, said office shall have a publicly listed local telephone and shall be so operated to receive complaints and requests for repairs or adjustments at any time, seven (7) days per week. This office shall have sufficient telephone service to permit Subscribers to communicate with Grantee without excessive delay. Notice of this information shall be provided to all new Subscribers at the time of subscrip- tion and to existing Subscribers annually. All complaints by City, Subscribers, or other persons regarding the quality of service, equipment malfunction, billing disputes, and any other matters relative to the System shall be investigated and responded to by a serv- ice representative of Grantee within 24 hours. If the complainant is not satisfied by the action taken by the Grantee, the complainant shall file a complaint with the City Council or its designate. Grantee must provide the City Council or its designate with a statement of the action taken to resolve the complaint and/or to preclude any recurrence of the complaint. The City Council or its designate shall cooperate with the company in rec- tifying the complaint. Grantee shall employ repair technicians capable of responding to and resolving requests for repair service within 24 hours following receipt of the Subscriber complaint or request for repair service. Service shall be restored as promptly as possible, and in all cases within three calendar days from receipt of the request for repair service. The cost of repair service and maintenance of the System shall be borne by Grantee. If service is not restored within 24 hours, the Subscriber shall be credited on a pro rata basis for such loss of service. Grantee shall prepare and maintain a record of all complaints made to Grantee. This record shall indicate the nature of each complaint, the date and time of receipt, the disposition of said complaint and the time and date thereof. This record shall be made available for inspection upon request by the City. Grantee shall maintain the system as set forth in Form I, pages 30 - 30f of its proposal submitted May 6, 1981, and shall handle service complaints as set forth in Form I, pages 31 - 3lb of its proposal submitted May 6, 1981. -39- 11.115 Books and Records of Grantee (A) Payment Records On or before each of the dates on ~hich payments pur- suant to the franchise are to be made, and within sixty days after the expiration or cancellation of the franchise, and at such other times as the City shall designate, the Grantee shall furnish and deliver to the City verified or certified reports of its business and operations hereunder and gross receipts derived therefrom in such form and in such detail as the City may prescribe, (B) ~eports Filed with Government Entities Within five days after the Grantee, its affiliates and/or subsidiaries have filed a report, petition or communication with any City, State or Federal agency, department or board, pertaining to any aspect of opera- tions under the franchise or the financial arrangements therefore, it shall file a copy of such report, peti- tion, or communication with the City and with the Minnesota Cable Communications Board. (C) Access Channel Reports The Grantee shall file quarterly with the City a report or log describing the use being made and the users of access channels. The Grantee shall file annually with the City a report of its expenditures for local origina- tion and access programming and facilities including their operation and maintenance. (D) Annual Re~orts Grantee shall file with the City Manager a cer- tified annual report, on or before March 31 in each calendar year for the preceding calendar year ending December 31. The annual report shall include the following: (a) A statement summarizing the previous year's activities in development of the System, including services commenced and terminated, and Subscribers gained and lost; (b) A financial statement prepared by an indepen- dent certified public accountant, to include an income statement, balance sheet, statement of sources and application of funds, and the gross receipts of Grantee for the preceding (~) year as defined in Section 11.102(14) of the franchise; (c) A current statement of cost of construction by component category; (d) A statement of construction planned for the next year; (e) A statement regardin~ complaints, identifyin~ the number, nature and disposition; (f) A current list of the names and addresses of each officer and director of Grantee; (g) A statement of current billing practices; (h) A current copy of rules of Grantee; (i) A current copy of the Subscriber Service Contract of Grantee.' Location and Availability of Books and Records of Grantee (1) (z) The Grantee shall maintain an office in the City, or other location as approved by the City, for so long as it continues to operate the System or any portion thereof and hereby designates that office as the place where all notices, directions, orders, and requests may be served or delivered under the franchise. The Grantee shall keep complete and accurate books of account and records of its business and opera- tions under and in connection with the franchise in accordance with normal and accepted bookkeeping and accounting practices for the Cable Communications industry, and allow for inspection and copying of them by the City at reasonable times at designated offices. The books and records to be maintained by Grantee shall include: (a) A record of all requests for service; (b) A record of all Subscriber or other complaints, action taken by Grantee, and the disposition thereof; (c) A file of all Subscriber contracts; (d) Grantee policies, procedures, and company rules; -41- (e) Financial records. (3) The City or any other person designated by the City Council, shall have access to all books of account and records of the Grantee for the purpose of ascertaining the correctness of any and all reports, and shall have authority to audit the Grantee's accounting and financial records upon 24 hour notice. The Council may examine the Grantee's officers and employees, under oath, in respect thereto. (4) Any false entry in the books of account or records of the Grantee or false statement in the reports required to be filed by the Grantee shall consti- tute a breach of a material provision of the franchise. 11.116 Testin$ The Grantee shall provide a minimum operational standard as indicated below: (A) The System shall deliver to the Subscribers' terminal, a signal that is capable of producing a picture, without visual material degradation in quality. The System shall transmit or distribute signals without causing objectionable cross modulation within the cables or interfacing with other electrical or electronic net- works or with the reception of other television or radio receivers in the area not connected to the network. (c) The Grantee shall be responsible to abate all inter- ference arising from interfering signals of less than 5 volts per meter. (D) The Grantee shall be responsible for providing special testing of the System as required by the City. Cost for such special testing shall be the responsibility of the Grantee. (E) Results of any tests required by the FCC shall be filed within 10 days of the conduction of such tests with the City and the Board. 11.117 Miscellaneous Provisions 11.117(1) Action by the State or Federal Authorities (A) The Grantee shall conform to all state laws and rules regarding cable communications, not later than one year -42- Il.liT(2) after they become effective, unless otherwise stated, and to conform to all federal laws and regulations regarding cable communications as they become effective. The terms of this franchise shall cease to be of any force and effect if the Grantee fails to obtain either a regular Certificate of Confirmation or renewal of a Certificate of Confirmation from the Board: provided, however, that the Grantee may operate a Cable Communications System while the Minnesota Cable Communications Board is considering the application for the renewal of it's Certificate of Confirmation. (c) In the event any material provision of the franchise is held to be invalid or pre-empted by Federal or State laws, rules or regulations, prior to or as a result of the issuance of a Certificate of Compliance or Certificate of Confirmation by the FCC or the Minnesota Cable Communications Board, the City shall have the option to terminate or modify the franchise. (D) If any law, ordinance or regulation shall require or permit Grantee to perform any service or prohibit Grantee from performing any service which may be in conflict with the terms of this franchise, then as soon as possible following knowledge thereof, Grantee shall so notify the City. If the City determines that a material provision of the franchise is affected by such law, ordinance or regulation, the City shall have the right to modify, alter, or repeal any of the provisions of the franchise as may be necessary to carry out the intent and purpose of the franchise. In the event the City modifies, alters, or repeals any provision of the franchise, Grantee agrees to conform to the franchise as modified, altered or partially repealed. Failure of Grantee to notify the City as provided in this section shall constitute a breach of a material provision of the franchise. Severabilit_y If any section, subsection, sentence, clause, phrase or por- tion of the franchise is for any reason held invalid or unconstitutional by any court of competent Jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. -43- 11.117(3) Grantee Will Not Contest Validity of Franchise Grantee agrees that it will not set up against City in any claim or proceeding, any condition or term of the franchise as unreasonable, arbitrary, void or that City had no power or authority to make such term or condition, but shall be required to accept the validity of the terms and conditions of the franchise in their entirety. 11.117(4) Interpretation by City of Franchise In case of any dispute or question as to the meaning, interpretation or application of any term, provision or con- dition of this franchise, the City Council of Columbia Heights, in its sole discretion shall resolve such dispute or question. 11.117(5) Subscriber Privacy (A) The Grantee shall not transmit signals of a Class IV cable communications channel from a subscriber terminal for purposes of monitoring individual viewing patterns or practices without the express written permission of the subscriber. The request for such permission shall be contained in a separate document with a prominent statement that the subscriber is authorizing the per- mission in full knowledge of its provisions. Such writ- ten permission shall be for a limited period of time not to exceed one year which shall be renewed at the option of the subscriber. No penalty shall be invoked for a subscriber's failure to provide or renew such authoriza- tion. The authorization shall be revokable at any time by the subscriber without penalty of any kind what- soever. Such permission shall be required for each type of classification of Class IV cable communications activ- ity planned for the purpose. (B) 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 of such subscribers or any lists that identify the viewing habits of subscribers shall be sold or otherwise made available to any party other than to the Grantee for internal business use, and also to the subscriber subject of that information, unless the Grantee has received specific written authorization from the subscriber to make such data available. (c) Written permission from the subscriber shall not be required for the systems conducting systemwide or indi- vidually addressed electronic sweeps for the purpose of verifying system integrity or monitoring for the purpose -44- 11.117(6) 11.117(7) of billing. Confidentiality of such information shall be subject to the provision set forth in Minnesota Cable Communications Board rule Criminal Penalt~ Exclusive of the contractual penalties set out in the ordi- nance, a violation of any provision of the ordinance by any person, firm or private corporation is a misdemeanor. Compliance with City Charter By acceptance of the franchise, Grantee specifically agrees that: (A) Grantee shall be subject to and will perform on it's part all the terms of Sections 91 - 102 inclusive of the Charter of the City of Columbia Heights. (B) Grantee shall not issue any capital stock on account of the franchise or the value thereof, and that the Grantee shall have no right to receive, upon condemnation pro- ceedings brought by the City to acquire the public util- ity exercising such franchise, any return on account of the franchise or its value. (c) That no sale or lease of said franchise shall be active until the assignee or leasee shall have filed in the office of the City Manager an instrument, duly executed, reciting the fact of such sale or lease, accepting the terms of the franchise, and agreeing to perform all the conditions required of the Grantee thereunder, (D) That every grant of permission contained in the franchise for the erection of poles, masts, or other fixtures in the streets and for the attachment of wires thereto, or for the laying of tracks in, or of pipes or conduits, under places of any permanent fixtures what- soever, shall be subject to the condition that the coun- cil shall have the power to require such alterations therein, or relocation or rerouting thereof, as the council may at any time deem necessary for safety, health, or convenience of the public, and particularly that it shall have the power to require the removal of poles, masts, and other fixtures bearing wires and the placing underground of poles, masts, and of other fix- tures bearing wires and the placing underground of all wires for whatsoever purpose used. (E) Acceptance of the franchise, and every extension or renewal or extension thereof shall be in writing by the Grantee within thirty days after its passage by the -45- 11,117(8) council and before its submission to a vote of the people in case of a referendum. No such franchise shall be binding upon the City until its acceptance by the Grantee. Such acceptance shall be construed to be an acceptance of and consent to all the terms, conditions, and limitations contained in the ordinance granting the franchise as well as of the provisions of the Charter of the City of Columbia Heights. Continuing Supervision and Regulatory Jurisdiction The City sh"11 have continuing regulatory Jurisdiction and supervision over the System and the Grantee's operation under the franchise. The City may issue such reasonable rules and regulations concerning the construction, operation and main- tenance of the System as are consistent with the provisions of this agreement. The Grantee shall construct, operate and maintain the System subject to the supervision of all the authorities of the City who have Jurisdiction in such matters, and in strict compliance with -11 laws, ordinances, departmental rules and regulations affecting the System. The System and "11 parts thereof, shall be subject to the right of periodic inspection by the City. The officer responsible for the continuing administration of the franchise on behalf of the City shall be: 11.118 11.118(1) 11.118(2) 11.118(3) Name Title: City Manager Joint System, Acceptance, Incorporation of Grantee's Proposal, Exhibits The system intended for the City may be part of a Joint system that serves the Cities of Columbia Heights and Hilltop. Grantee will, in good faith, apply for and accept, if offered to it, a Franchise from both Cities on all the same terms and conditions herein provided. Failure to do so shall cause this ordinance to be void. The Franchise ordinance shall be in full force and effect thirty-one (31) days after its passage provided Grantee accepts the Franchise within thirty (30) days of passage. Upon acceptance, Grantee shall be bound by all of the terms and conditions contained herein. Grantee shall provide "11 services and offerings specifically set forth in Grantee's -46- Proposal to provide cable co~munication service ~rlthin City and other cities included in or a part of a Joint system, and, by its acceptance of the Franchise, Grantee specifically agrees to be bound by Grantee's Proposal, including all pro~- iaea, offers, representations and inducements contained therein. The failure to refer to Grantee's Proposal in any specific provisions of this Franchise shall not be a limita- tion on the obligation of Grantee to fully comply with said Proposal that all promises, offers, representations and ducements contained in the Grantee's Proposal were freely and voluntarily made to City by Grantee. Grantee's Proposal shall be permanently kept and filed in the office of the City Clerk and the originals or reproductions thereof shall be available for inspection by the public during normal business hours. 11.118(4) In the event of conflicts or discrepancies between any part of Grantee's Proposal and the provisions of the Franchise, those provisions which provide the greatest benefit to City, in the option of the Council, shall prevail. Grantee shall have continuing responsibility for the Franchise, and if Grantee be a subsidiary or wholly owned corporate entity of a parent corporation, performance of the Franchise shall be secured by guarantees of the parent cor- poration in form and substance acceptable to City, which shall be delivered at time of, and as part of, acceptance of this Franchise. With its acceptance, Grantee shall also deliver to City an opinion from its legal counsel, acceptable to City, stating that the Franchise has been duly accepted by Grantee, that the guarantees have been duly executed and delivered, that the Franchise and the guarantees are enforceable against Grantee and the guarantors in accordance with their respec- tive terms, and which opinion shall otherwise be in form and substance acceptable to City. With its acceptance, Grantee also shall deliver to City true and correct copies of documents creating Grantee and evidenc- ing the power and authority referred to in the opinion of Grantee's counsel, certified as of a then current date by public office holders to the extent possible and otherwise by an officer of Grantee. Each exhibit is a part of the Franchise and each is specifi- cally incorporated herein by reference. The exhibits are as follows: Exhibit A: Constitutional Network Facilities Locations Exhibit B: Construction Schedule -47- Exhibit C: Exhibit D: Exhibit G: Construction Schedule Nap Su~m~ry of Services as Allocated to Channels Su,~,ary of 1~ and Audio Service Subscriber Rates September 28, 1981, letter fro~ Teleprompter regarding Video Production Facilities, Staff and Budgets for Access Programmins First reading: Second reading: Date of passage: OCTOBER 26, 1981 NOVEMBER 9, 1981 .NOVEMBER 9, 1981 Offered by: HEINTZ Seconded by: LOGACZ Roll call: NORBERGLOGACZ' _HEINTZ'NAY HENTGES,~//z/~~/////NAWROCKI - .A~ff . Bruce'G. Nawrocki, ~ayor /Jo-Ann~ Student, Se~ry to the Council -48- EXHIBIT A INSTITUTIONAL NETWORK FACILITIES LOCATIONS The following institutions will each receive a modulator and a character generator as well as being connected to the institutional network at no cost: Columbia Heights City Hall 590 40th Avenue NE Columbia Heights Public Library 820 40th Avenue NE Hilltop City Hall 4555 Jackson St NE Columbia Heights School District Superintendent 1400 49th Avenue NE Columbia Heights Community Center (Location to be determined by the City) The following institutions will receive, at no charge, a modulator and connection to Teleprompter's institutional network: Highland Elementary School 1500 49t~ Avenue NE Central Middle School 900 40th Avenue NE Columbia Heights Senior High Stadium 1400 49th Avenue NE Immaculate Conception School 4053 Quincy Street NE Parkview Villa 965 40~h Avenue NE Fire Department Training Classroom 555 Mill St NE Department of Public Works (Columbia Heights Service Center) 637 38th Avenue NE Columbia Heights Municipal Liquor Store #2 322 40th Avenue NE Columbia Heights Municipal Liquor Store #3 5225 University Avenue NE Murzyn Hall 530 Mill St NE Police Department 559 Mill Street NE Valley View Elementary 800 49th Avenue NE Columbia Heights Senior High 1400 49th Avenue NE Fire Department 555 Mill Street NE The locations listed below will be connected to Teleprompter's Institutional Network at no charge. Two modulators will be provided which can be moved from location to location to facilitate program origination. Columbia Heights Municipal Liquor Bar 4025 Central Avenue (or new location as designated by City) Huset Park Bandshell 530 Mill St NE Gauvitte Park 4333 2nd Street NE LaBelle Park 1150 42nd Avenue NE Mathaire Park 4956 Johnson St NE McKenna Park 4757 7th Street NE Keyes Park 1345 45 '/2 Avenue NE Ostrander Park 1500 40th Avenue NE Prestemon Park 39th & McKinley Sullivan Lake Park 721 51st Avenue NE Southwest Park 80 39th Avenue NE Silver Lake Beach 43''d & Stinson NE Edgemoore Park 40th and 2nd Street NE Hilltop Park 4657 Heights Drive Kordiak Park 49th Avenue NE Further, as soon as the Minnesota Cable Communications Board rules permit, and the City Councils of Columbia Heights and Hilltop agree, Teleprompter will provide a modulator to North Park Elementary School, 5575 Fillmore St NE, and connection to Teleprompter's Institutional Network free of charge. EXHIBIT B CONSTRUCTION SCHEDULE BY MILEAGE (Basic Subscriber Network Only) Months Category Phase I Phase II 0 to 6 7 to 12 a. Aerial plant miles 35.2 23.4 b. Underground plant 11.8 13.2 miles with conduit c. Underground plant 0 0 miles w/o conduit d. Total plant miles 47.0 36.6 (For year specified) e. Cumulative plant 47.0 83.6 miles completed (Inception to date) f. Cumulative percentage 56.2 100.0 completed (Inception to date) Note: The construction period begins on the date that the Minnesota Cable Communications Board confirms the franchise. Columbia Heights,tHilllop Conslrudion Schedule =. NE 4$th Av~. NE EXHIBIT D SUMMARY OF SERVICES AS ALLOCATED TO CHANNELS UNIVERSAL Public Access Regional Interconnect Educational Access Leased Access Government Access/Emergency Alert Channel Local Origination/Community Bulletin Board Religious Access Program Guide MINI-BASIC All services listed above, plus: KTCA-TV WCCO-TV KSTP-TV KMSP-TV WTCN-TV Youth Access KTCI-TV Medical/Health Access Local Origination (Local & State News) Community Bulletin Board/Community Trading Post Transportation Information Trinity Broadcasting/People That Love/ National Christian Network/Christian Broadcasting Network Weather Radar/Time *Home Theatre Network *Front Row BASIC All services listed above, plus: American Educational TV Network/Appalacian Community Service Network USA Network (Sports, Calliope, English Channel) Black Entertainment Television Cable-Satellite Public Affairs Network Women's Channel/BETA Nickelodeon/ARTS Modem Satellite Network Satellite Programming Network Entertainment and Sports Programming Network Cable News Network WGN-TV WTBS-TV WOR-TV The Music Channel UPI Newswire *Bravo *Home Box Office *Showtime *Movie Channel *Cinemax *RCTV *Public Subscriber Network INTERACTIVE All services listed above, plus: *Reuters IDR *Pay Per View Interactive Services *pay-cable channels EXHIBIT E SUMMARY OF FM & AUDIO SERVICES Local FM stations (minimum 19) Shortwave stations (minimum 3) Audio Access Talking Books Network Simulcast Pay Audio EXHIBIT F SUBSCRIBER RATES Teleprompter of Columbia Heights/Hilltop, Inc., proposes the following installation charges and monthly fees for its various services: Tier I 8 channels Universal First Outlet Additional Outlet Relocation/Reconnection Tier II 25 Channels Mini-Basic Service First Outlet Additional Outlets Relocation/Reconnection Tier III 46 Channels Basic Service First Outlet Additional Outlets Relocation/Reconnection Tier IV 52 Channels Interactive Service First Outlet Additional Outlets Relocation/Reconnection Monthly Rate No Charge No Charge Not Applicable $3.95 *3 $2.95 *3 Not applicable $7.95 *3 $3.95 *3 Not applicable Installation Rate $39.95 $39.95 $14.95 $14.95 *2 Free/S14.95 $14.95 $14.95 *2 Free/S14.95 $14.95 $10.95 *3 $3.95/$6.95 *7 Not Applicable $14.95 *2 Free/S14.95 $14.95 *4 *4 FM Radio Service *5 First Outlet $1.95 *3 Free/S14.95 *4 Additional Outlets Free Free/$14.95 '4 Relocation/Reconnection Not applicable $14.95 Teleprompter Lifeline *6 (Burglar/Fire Alarm and $13.50 $99.00 and up Medical Alert Service) See following page for footnotes. *1 With the Mini-Basic Service, two mini-pay TV services (Home Theater Network and Front Row) are available for an additional monthly service charge. With the Basic Service and Interactive Service, all Maxi-Pay services and all Mini-Pay services are available, each for additional monthly service charges. *2 No installation charge for Mini-Basic, Basic or Interactive Services for 90 days after cable service is first offered in an area. In addition, installation charges may be waived or reduced at certain times for promotional purposes. *3 Fifteen percent (15%) discount for senior citizens (heads of households, age 65 and over) and handicapped (heads of households and as defined by Minnesota State Law) for the Mini-Basic, Basic, Interactive and FM Services; this excludes Lifeline. *4 Installation is free if installed at same time as first outlet; $14.95 if installed at a later date. *5 Not available without cable television service. *6 Installation and service charges for Teleprompter Lifeline depends upon the number of monitoring devices (e.g., smoke detectors, emergency alert buttons) subscriber wishes to have installed. Teleprompter will actively seek federal aid to assist senior citizens in their payment of these services. Lifeline is available with or without other cable services. Final price contingent on conclusion of negotiations with local monitoring companies. *7 $3.95 for additional outlet without addressable or interactive capability; $6.95 includes fully addressable and interactive service. COMMERCIAL-ACCOUNT CHARGES--All hotels, motels, TV retail and service stores, nursing homes, and hospitals. The maximum monthly service charge per outlet of commercial usage is 50 percent of the residential first-set rate for the same service. Installation charges will be determined on an individual basis after an engineering survey of the facility has been completed. In no event will the charges exceed the standard installation charge on a per unit basis. BULK RATE ACCOUNT CHARGES--All apartment buildings, condominiums, trailer parks, etc., having five or more single family dwellings at the same or contiguous service address with single point billing. Billing for bulk-rate accounts is based on total units, whether occupied or not. The maximum monthly service charge per outlet for this category is 80 percent of the residential first-set rate for the same service. Installation charges will be determined on an individual basis after an engineering survey of the facility has been completed. In no event will the charges exceed the standard installation charge on a per unit basis. OTHER RATES If deposit is required for converter, state amount and describe conditions relating to ownership, use, repair, and replacement. A converter deposit is not required. Pay Cable: Detail proposed rates that will be charged for pay cable services. Include charge if any, for lock-out devices and equipment installation. Indicate whether charges are monthly or assessed on a one time basis. Pay. TV Service Monthly Rate *fi&~ Installation Charge _*3,g, & 5 Showtime $7.95 Free/$14.95 Home Box Office $7.95 Free/S14.95 Cinemax $7.95 Free/S14.95 The Movie Channel $7.95 Free/$14.95 RCTV See Note 8 Free/$14.95 Public Subscriber Network See Note 8 Free/S14.95 Bravo! See Note 9 Free/$14.95 Home Theater Network $4.50 Free/$14.95 Front Row $4.50 Free/$14.95 *1 *2 *3 *4 *5 *6 *7 *8 *9 None of the pay television products offered by Teleprompter will be X-rated. Nonetheless, Teleprompter of Columbia Heights-Hilltop will provide a free "lock out" provision, upon request, which will allow parents to "lock out" pay television programming they feel their children should not see. Home Theater Network and Front Row available on Mini-Basic Service. All pay services are available on Basic and Interactive Services. Free installation is installed at the same time as Basic or Interactive Services; $14.95 if installed at a later date. Teleprompter may waive or reduce installation charges at certain times for promotional purposes. Installation is free if installed at same time as first pay television outlet; $14.95 if installed at a later date. There is a five percent discount on the monthly charges for all pay services beyond the initial one. No charge for pay services on additional outlets (subscriber must purchase basic additional outlet). Teleprompter will offer RCTV and Public Subscriber Network for which an installation and monthly rate will be charged. Rates for this service will be determined when firm contracts are negotiated with vendors. Bravo! Will be offered when available as a separate service at a rate to be determined when firm contracts are negotiated with the vendor. OTHER RATES -- continued page 5 of 5 Studio and Equipment Usage Describe studio and equipment usage rates for commercial and noncommercial users. Include rates for such services as studio production time, remote production time, supervision and instruction, leased channel costs, system playback costs, and editing costs. No charge is made to non-leased access users. Leased Access: a. Commercial 1. Studio production time $ 100. 2. Remote production time ~ 200. 3. Supervision and instruction. $ 50. 4. Leased channel costs $ 100. 5. System playback costs $ 100. 6. Editing costs $ 100. b. Noncommercial per hour per hour per hour per hour per hour per hour 1. Studio production time $ 50. 2. Remote production time $ 100. 3. Supervision and instruction $ 25. 4. Leased channel costs $ 50. 5. System playback costs $ 50. 6. Editing costs $ 50. per hour per hour per hour per hour per hour per hour 4. Service to Governmental and Educational Facilities a. Installation Fees: (1) One cable outlet (per facility) (2) More than one outlet (per facility b. Monthly Rate $ No charge $ Time and material $ No charge SEPTE~BZR 28, 1981, LETTER FROB TELEPRO~TER ILE6ARDING VIDEO PRODUCTION FACILI- TI'ES, STAFF AED BUDGETS FOR ACCESS PROCRAI~IINC "TEL£PROMPTER CORPORATION 90 SOUT~ S~X'TH STREET MINN£APOLIS, MINNESOTA ~540~ (612) a32-0301 September 28, 1981 Fir. Dave Szurek, Chairman Columbia Heights/Hilltop Citizens Advisory Commission on Cable Communications I City of Columbia Heights 590 &0th Avenue Columbia Heights, Hlnnesota Dear Hr. Szurek: At the August 12, 1981, ueeting of the Columbia Heights/Hilltop Cable Advisory Board we were asked to develop a local origination and access plan which would include a second full-time person for access program~ing and eliminate some of the proposed equipment. At your meeting of September 16, 1981, you requested further revisions to our master control. This letter is in response to your request. In developing this plan we have been mindful not to change the "bottom line" financially. The addition of a person to our access staff viii necessitate the elimination of some equipment. CTIC and Teleprompter believe that the ate of return on capital investment should be approximately fourteen per cent (14%) per year. Further, Teleprompter utilizes equipment depreciation lives of eight years on mobile equipment and ten years on fixed origination and access equipment. Therefore, the "bottom line" cost per year is approx- imately twenty-six per cent (262) of the original investment. The addition of a second person at $13,000 per year, with $1,950 in benefits,will necess- itate the eli~ination of approxi~ately $57,500 in capital. Our proposal as submitted included the folloving equipment package: Local Origination Studio Local Origination Van Haster Control Portable Studio for Local Origination Access Studio Access Van Three Portable Studios for Access T~o FH Studios for Access TOTAL $ 81,843 37,515 50,34a 7,682 16,566 37,515 23,046 9,393 $292,909 T£I.EPROMPTER CORPORATION Hr. Dave Szurak Sept~ber 28, 1981 Fade ~o In response to your inquiry at the meeting we pointed out that there v&s included in our hesdend breakdown $17,700 of equipment which could be eliminated. That includes $1&,O00 for the two non-duplication switchers and $3,?00 for FH access equipment. The non-duplication switchers are no longer needed because the Second Circuit Court of Appeals has upheld the repeal by the Federal Co=~unicstion Commission of the syndicate ex- clusivity rules. The FM access studio duplicates equipment included in the local origination and access equipment package. The equipment package which would be used if an additional access person was added at $13,000 per year would include the following: Local Origination and Access Studio Local Origination and Access Van I/aster Control Three Portable Studios for Access TM Studio for Access TOTAL $ 81,843 92,224 53,344 23,046 4,699 $255,156 The total equipment savings, including both headend deletions and the com- bination of the vans, studios, portable studios, and the elimination of m FH access studio, is $55,453. The difference in capital eliminated to chat to which the additional person is the equivalent is approximately $2,000, less than 1% of the total equipment capital. We have attached total equipment lists for the review of your Board and your consultant. The consolidation of vans and studios allows us to offer a mobile van with complete editing and product/on enhancement equipment. We have added two additional video tape recorders to our master control as requested by your consultant. If you have any further inquiries, please feel free to contact Teleprompter. ~ours very~ruly, [ Roger ~ Fr~nke Minn~a Franchising Manager Attachments FORM K LOCAL PROGRAMMING LOCAL PROGRAM PRODUCTION EQUIPMENT AND FACILITIES Applicants should list all studio facilities and equipment which will be provided for local program production. Although facilities may be available to all classes of users, please note that access studios and equipment (listed on page 2) are for priority use of access channel users, and should exclude any facilities or equipment listed on page 1. Please indicate location of production facilities and list make, model number, and your approximate cost for each piece or grouping of equipment. 1. Local Origination Studio: Main Color Studio a. Location (approximate): Headend b. Size (approximate): 20 fl by 20 ft c. Will this facility also serve as an access studio? Yes ~2No Local Origination Equipment List (provide make, model number, and your approximate cost for each piece of grouping or equipment*). Do not include equipment available to access channel users on an exclusive or priority basis. Include equipment to be used exclusively for cablecasting local origination programs on the system. COLOR STUDIO Teleprompter's color studio consists of two high quality Hitachi FP 20S color television cameras connected to a production switcher that has elaborate special effects capabilities. To enhance the professional quality of cable productions, two VO 2860 videotape recorder-players can be used in conjunction with a Sony RM 430 electronic editor. The studio also includes a video titler for superimposing credit lines and other text over video images. *It will be presumed that equipment described or its equivalent will be provided. As an alternative, applicant may provide detailed specifications for such equipment. FORM K COLOR STUDIO CONTINUED QLIANTITY 2 DESCRIPfflON Color camera 3 station With view Fmder & Servo zoom lens Complete package Includes: Per Camera Camera Head Vertical Enhancer Microphone VTR Cable Battery Case Carrying Case Viewfinder AC Adaptor Grip Battery Battery Charge Service Manual Camera Accessories: Genlock module Shoulder pad Spare battery Spare battery holder Spare micro charger Quick charger Spare VTR cable (6 ft) VTR cable (15 ft) Spare Service Manual Camera Studio Accessories: Operation panel with 50' cable (C-152CC) 150' extension cable Studio adaptor with 7" Viewfmder (VM-703) Portable 10:1 10-100mm F 1.6 Auto iris manual zoom (servo zoom opt) Servo zoom module for H10X10.SRH Servo control grip for H10X10.SRH Rear conversion kit for servo zoom and Manual focus MAKE Hitachi MODEL FP20S FP-20 VE-106A MC-30B C-201CK DH-12 CL-20 VM- 154 AP-60 GR-60 DP-12 BC-12 SVM-20 GL-20 SP-60 DP-12 DH-12 BC-12 OC-12 C-201CK C-501CK SVM-20 OP 60 C502CC SA 60 H10X10.5RH ZSM I0 SRD 51 SCK 51 FORM K QUANTITY 2 2 1 2 2 2 4 1 1 1 1 1 2 DESCRIPTION Tripod with fluid head Dolly B & W Camera Video tape recorder U-Matic Color player used for playback & to feed VO-2860 for editor Editor electronic for control of VO-2360 for editing 10" Rack mounted B & W monitors 12" Trinitron color monitor/receiver 12" Trinitron color monitor/receiver Microphone lavalier Microphone omni-directional Audio mixer 6 input ch. 2 output ch. Audio/video switcher Video switcher Time base corrector Headset Studio Lighting Kits Racks Audio & Video cable & connectors Patch Panel Miscellaneous Video production switcher & special Effects generator 8" speakers for audio-monitoring MAKE Comprehensive Comprehensive Panasonic Sony Sony GBC Amtron Amtron Sony Electro-voice Sony Dynair Dynair CVS Telex Berkey Colortron Premier Belden & Amp Trompeter Echo labs Lafaye~e MODX_~ TR-76 TRD 341P VO-2860A RM430 MV 10A TR-12R/M PC-U-D-B TR-12 R/M ECM-150 635A MX-650 VSX12X2A VSX6X1 510 9450 Mark II SE-2 21A0754B FORM K QUANTITY 1 1 1 1 1 1 5 5 DESC~ Audio amplifier stereo Video Titler Waveform monitor Vector Scope Distribution amplifier frame Distribution amplifier power supply Video distribution amplifier Audio distribution amplifier TOTAL EQUIPMENT COST = MAKE MOi2F~ Lafayette 99A03691 Videodata TM 1024S Tektronix 52B Tektronix 1420 DiTech 103 DiTech 801 DiTech 110 DiTech 170 $81,843 Which of the equipment items listed will also be available for access use? All equipment, when not in use for local origination programming, will be available to access users should the dedicated access equipment be temporarily unavailable. FORM K LOCAL PROGRAMMING LOCAL PROGRAM PRODUCTION EQUIPMENT AND FACILITIES Applicants should list all studio facilities and equipment which will be provided for local program production. Although facilities may be available to all classes of user, please note that access studios and equipment (listed on page 2) are for priority use of access channel users, and should exclude any facilities or equipment listed on page 1. Please indicate location of production facilities and list make, model number and your approximate cost for each piece or grouping of equipment. Local Origination Studio: Master Control Center a. Location (approximate): Headend b. Size (approximate): 15 ft x 30 ft C. Will this facility also serve as an access studio? X. Yes (1) No Local Origination Equipment List (provide make, model, number and your approximate cost for each piece or grouping of equipment*). Do not include equipment available to access channel users on an exclusive or priority basis. Include equipment to be used exclusively for cablecasting local origination programs on the system. Master Control Center Teleprompter's master control will regulate the airing of automated services, videotapes, films, slides, and live productions. Through use of this facility, Teleprompter's local origination and access programming as well as automated services will maintain professional quality at all times. To ensure continuos operation, the master control will be provided with a generator, automation transfer and exercise panel for use in the event of a commercial power failure. *It will be presumed that equipment described or its equivalent will be provided. As an alternative, applicant may provide detailed specifications for such equipment. (1) The Master Control Center will control all programming including local origination and local programming. FORM K MASTER CONTROL CENTER CONTINUED QUANTIT55 DES.CRIP. TIO~ 1 Routing switcher with 15 x 15 8 B & W monitor 2 Color monitor/recorder 1 Wave forms/monitor 1 Audio amplifier 2 Speaker 2 Headphone 1 Waveform monitor Patch Panels Racks & hardware Cables & connector 1 Generator 15 KW 4 Color TV 14 B &WTV 1 Multiplexer mobile & Support table/slide Dissove unit 2 Kodak ektagraphic 35mm Kodak Projected slide 1 Film Camera System Complete package incl: GP-7 Camera Head GL-Genlock Module AP-60 AC Adapter 1 Studio Accessories Operation panel with 50 ft. Cable (C-152CC) Fujinon 5:1 20-100 mm F1.8 Auto Iris, Cable Drive Studio Lens MAKE DiTech GBC Amtron Tektronix Bogen Lafayette Koss Tektronix Trompeter Belden & Amp Onan Panasonic Panasonic Buhl Hitachi Hitachi MDDY_.& 5400 MV 10ARM TR-12 R/M PC-U-D-8 52B C-10 27A754B Pro 4AA 1480 JSI 52 15.OJC-3CR CT-22B CT- 1202 B-2AR OP-7 C5X20RW-A FORM K QUANTITY 3 3 2 2 2 DESCtlIPXION MAKE MODY_,L Audio Mixer Shure M67 Omni-directional mike Electro-voice 635-A Tuner Kenwood 5500 Character Generator Video Data CG832A Video tape players for Sony VO~2860 Playback TOTALEQUIPMENTCOST $53,344 Which of the equipment items listed will also be available for access use? The Master Control Center will control all programming, including local origination and local programming. FOt~/I K LOCAL PROGRAMMING LOCAL PROGRAM PRODUCTION EQUIPMENT AND FACILITIES Applicants should list all studio facilities and equipment which will be provided for local program production. Although facilities may be available to all classes of users, please note that access studios and equipment (listed on page 2) are for priority use of access channel users, and should exclude any facilities or equipment listed on page 1. Please indicate location of production facilities and list make, model number and your approximate cost for each piece or grouping or equipment. 1. Local Origination Studio: Mobile Color Van a. Location (approximate): To be based at the headend b. Size (approximate): Not applicable c. Will this facility also serve as an access studio? X Yes No This mobile facility will be utilized for remote productions for local origination and local access. Local Origination Equipment List (provide make, model number and your approximate cost for each piece or grouping of equipment*). Do not include equipment available to access channel users on an exclusive or priority basis. Include equipment to be used exclusively for cablecasting local origination programs on the system. COLOR VAN Teleprompter's color van is a mobile studio on wheels, which can be driven anywhere for shooting on location. The color van contains two quality color cameras and a video production switcher that is capable of special effects such as dissolves and split-screen imaging. To enhance the mobile studio's production capabilities the van also contains a professional U-Matic videotape recorder/player/editor for electronically editing footage. The color van is also equipped with a video titler for superimposing credit lines and other text material over images. The van also contains a power generator to provide electrical power in the field when commercial power is unavailable, plus a heating and air conditioning system to protect equipment and personnel from the elements. *It will be presumed that equipment described or its equivalent will be provided. As an alternative, applicant may provide detailed specifications for such equipment. QUANTITY 2 DESEKLPIID~ Color camera 3 saticon with View finder & servo zoom lens Hitachi Complete package includes: Per camera Camera Head Vertical Enhancer Microphone VTR Cable Battery Case Carrying Case Viewginder AC Adapter Grip Battery Battery Charger Service Manual Camera Accessories Genlock module Shoulder pad Spare battery Spare battery holder Spare micro charger Quick charger Spare VTR Cable (6 ft) VTR Cable (15 ft) Spare Service Manual Camera Studio Accessories Operation panel w 50 ft cable (C 152CC) 150 ft extension cable Studio adapter with 7" viewfinder (VM703) Portable 10:1 10-100 mm F 1.6 Auto iris manual zoom (Servo zoom opt) Servo zoom module for H10X10.5RH Servo control grip for H10X10.5RH Rear conversion kit for servo zoom And manual focus FP20S FP 20 VE 106A MC 30B C 201CK DH 12 CL 20 VM 154 AP 60 GR 60 DP 12 BC 12 SVM 20 GL 20 SP 60 DP 12 DH 12 BC 12 OC 12 C201CK C502CK SVM 20 OP 60 C502CC SA 60 H10X10.5RH ZSM 10 SRD 51 SCK 51 QUANTITY 2 2 1 2 6 1 2 2 4 1 1 1 1 1 2 1 DESC~ Tripod with fluid head Dolly B & W Camera Video tape recorder U-Matic color Player used for playback & to Feed VO-2860 for editor Editor electronic for control of VO-2860 for editing 10 inch rack mounted B & W monitor 12" Trinitron color monitor/receiver 12" Trinitron color monitor/receiver Microphone lavalier Microphone omni directional Audio mixer 6 input channel 2 output channel Video switcher Audio/video switcher Time base corrector Headset Studio lighting kits Rack MAKE Comprehensive Comprehensive Transonic Sony Sony GBC Amtron Amtron Sony Electro-voice Sony Dynair Dynair CVS Telex Berkey Colortron Premier MODEL TR 76 TRD 341P VO-2860A R4430 MV 10A TR-12 R/M PC-U-D-B TR-12 R/M PC-U ECM-150 635A MX-650 VSX6X1 VSX 12X2A 510 9450 Mark I1 QUANTITY 1 1 1 1 1 2 5 5 2 DESCRIPTiO~I Audio & Video Cableing & Conn. Patch Panel Misc. Production switcher with Chromekeyer 8" speakers for audio Monitoring Audio amplifier stereo Video Titler Waveform Monitor Vector Scope DA Frame DA Power Supply Video distribution ampl. Audio distribution ampl. 6500 Watt AC Generators 13700 BTU Air Conditioner Belden & Amp. Trompeter American Data 2104-10 Lafayette 21A0754B Lafayette 99A03691 Videodata TM1024S Tektronix 52B Tektronix 1420 DiTech 103 DiTech 801 DiTech 110 DiTech 170 Onan G-5NH-3CR 16000 JC Whimey 19-8530XE Total Equipment Cost = $92,224 FORM K ACCESS PRODUCTION EQUIPMENT, FACILITIES AND SUPPORT Please describe local origination facilities and list equipment, if any, that will be available to access channel users on an exclusive or priority basis. Do not include local origination equipment listed on Form K, page 1. 1. Access Studios: Three (3) Portable Studios Locations (approximate): Two (2) at main access studio (1 for educational access and 1 for public access; one (1) at high school. b. Size (approximate): Not applicable List access equipment that will be made available to access channel users on an exclusive or priority basis (provide make and model number and your cost).* Include equipment to be used exclusively for cablecasting access programs. Portable Color Studio/Color Porta-Pak Each of Teleprompter's portable color studio Port-Paks will provide live color single-camera capability plus a videotape recorder-player that can be used to cablecast both live and prerecorded programming. To ensure the utmost in flexibility, the entire portable studio configuration can be battery powered to be used remotely in the field. QZTANTITY DE S CRIPIION MAKE MODEL 1 Portable videotape recorder Sony VO 4800 1 Portable Color Camera Hitachi GP 7A Complete package includes: Per camera Camera Head GP-7 Battery DP-60 AC Adapter AP-60 6:1 F2 Zoom V6X17 Carrying Case CL-7 Viewfinder VM- 151A *It will be presumed that equipment described or its equivalent will be provided. FORM K PORTABLE COLOR STUDIO/COLOR PORTA-PAK (CONTINUED) QUANTITY ~ MAKE Battery charger Hand Grip VTR Cable Camera Accessories Genlock Module Shoulder pad Spare 1.5 battery Spare 12 hour charger External microphone Spare VTR cable (6 ft) VTR cable (15 ft) Service Manual Portable Color Monitor Headset Audio Mixer Omni-Directional Microphones Wind Filters Microphone Cable Light Set 100 ft. Extra Cord (AC) Shipping Cases Tripod, Cam Head & Dolly Battery AC Adapter Carry Bar and Mobile Cart MODEL BC-7 GR-60 C-201CK GL-7 Sp-7 DP-60 BC-7 MC-30B C-201CK C-501CK SVM-GP7 Sony PVM-8000 Telex 9450 Shure M67 Elec~o-voice 635A Comprehensive NA Comprehensive NA Color Tran AWG Zero Prod. GBC Sony Sony Mark 2 #14 NA T-3 BP-60A BC-1000 Comprehensive NA Total equipment cost = $7,682 FORM K ACCESS PRODUCTION EQUIPMENT, FACILITIES AND SUPPORT Please describe local origination facilities and list equipment, if any, that will be available to access channel users on an exclusive or priority basis. Do not include local origination equipment listed on Form K, page 1. Access Studios: a. b. FM Stereo Radio Access Studio Locations (approximate): One (1) based at the main access studio Size (approximate): Not applicable 2. List access equipment that will be made available to access channel users on an exclusive or priority basis (provide make and model number and your cost).* Include equipment to be used exclusively for cablecasting access programs. CABLE STEREO FM RADIO STUDIO #1 Teleprompter's cable FM radio studio will be high-quality stereo cable radio station equipped with a tape cartridge recorder/playback machine that's a tape delay recorder/player for live telephone interviews to prevent spurious or prank telephone calls from being aired. The studio features two turntables for playing record albums plus a reel to reel tape recorder for playing and recording other audio material. The studio also contains a stereo mixer to control the input and output of all programming. The entire studio is housed in a custom-built cabinet. QUANTITY D~_,SCRIPTiON MAKE MODEL 1 Headset Telex 9450 1 Tape cartridge Spot Master 2000RP recorder/playback 1 Tape delay Spot Master 500 D/DL recorder/playback 2 Record player Panasonic SLH401 Tape recorder Wollensak 2520AV It will be presumed that equipment described or its equivalent will be provided. FORM K CABLE STEREO FM RADIO STUDIO (Continued) QUANTITY 3 1 DESCRIPXION Microphone omni-directional Audio mixer 6 input channels 2 output channels 8" speaker for audio monitoring Audio amplifier stereo Customized cabinetry Cable Total Equipment Cost = $4,699 Electro-voice Sony Lafayette Lafayette 635-A MX 650 21A0754B 99A03691