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Ord 211 Franchise to Continential CablevisionORDINANCE NO. 211 (Codified as Ordinance No. 203) All ORDINANCE GRANTING A FRANCHISE TO CONTINENTAL CABLEVISION • NORTHERN DAKOTA C•TfY, INC., TO OPERATE AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CITY • MENDOTA HEI=S; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT • FRANCHISE; PROVIDING FOR REGULATION AND USE • THE SYSTEM; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF ITS PROVISIONS. THE FOLLCWING IS A SUMMARY • THE ABOVE-REFERENCED ORDINANCE. A PRINTED COPY • THE FULL TEXT • THE ORDINANCE IS AVAILABLE FOR INSPECTION BY ANY PER- SON DURING REGULAR OFFICE HOURS AT THE OFFICE • THE CITY CLERK. The City of Mendota Heights has joined in studies conducted by the Northern Dakota County Cable Communications Commission (the Commission) in order to pro- cure cable television services that will best serve the communication needs of the individuals, municipalities, associations and institutions within the Cable Service Territory comprised of the City of Mendota Heights and immediately surrounding communities. In awarding the Franchise, the applicant's technical ability, financial condition, and legal qualifications were considered. Continental Cablevision of Northern Dakota County, Inc. (the Company) will reimburse the City of all cost incurred in awarding the Franchise and will hold the City harmless for all costs and losses arising out of the grant of the Franchise. The Company will be permitted to install equipment along and upon the streets of the City for the purpose of operating a Cable System. The Company will apply for all required permits. -1- The Franchise will be in effect for fifteen (15) years and will include the terms of both the Franchise Ordinance and the Company's offering. The Franchise is non-exclusive and will cease to be in effect if the Company fails to obtain a Certificate of Confirmation from the Minnesota Cable Communications Board. The Franchise comports with the minimum standards set forth by state law including providing one (1) channel each for non- commercial use by the general public, local government use, and public leased use. Personnel and equipment will be provided by the Company free of charge, except that such costs may be assessed for programs longer than five (5) . minutes. Rules pertaining to access channel use will be prescribed by the Company. The Company will make available the minimal equipment necessary for the production of programming for the non- commercial public access channel and will make available addi- abnal equipment upon need being shown. The Company will participate in interconnection in accordance with Minnesota Cable Communications Board rules. The Company will install cable underground where other utilities are underground; however, the System will not be operated to inter- '. fere with construction or operation of public works, or other uses of streets. The Company will repair any damage done to the street. The Company will maintain records available to the public, with the exception of personnel records. Each year the Company will file an annual report with the Commission documenting the activities of the Company including financial matters, subscriber contracts, and access rules. At the same time, the Company will provide a report of results of the FCC performance tests. The Company will maintain an office within the Northern Dakota County Cable Service Territory which has been approved by the Minnesota Cable Communications Board and will be able to receive subscriber complaints on a 24-hour-a-day, 7-day-a-week basis. The Company will maintain a repair force capable of making a repair visit within 24 hours of a request by a subscriber. Vehicles of the Company will be clearly identified and will display the local telephone number of the Company. If a subscriber does not obtain satisfactory resolution of a complaint by notifying the Company, the subscriber may refer the complaint to the Commission to assist in resolution of it. The subscriber service contract must be approved by the Commission and must include a description of all services, rates, and charges, along with instructions on use of the System, billing and collection practices. The contract will also be submitted to the state attorney general, for certification of the compliance with the Minnesota Plain Language Act. The contract will be no for longer than twelve (12) months duration and will contain instructions for filing complaints and for -3- obtaining information from the Company. The Company may offer special rates to senior citizens or handicapped persons who meet certain income requirements. The rates and charges set forth in the Company's offering will remain constant for two (2) years. If a subscriber termin- ates a service for failure of the Company to provide the service, the Company will refund a. pro rata share of the charges or rates paid by the subscriber for the services not received. All rates shall be subject to regulation by the City, the state, or its agencies, as may be applicable. Service requests for maintenance or repair shall be performed at no cost.to the subscriber, except that if repair is needed because of damage caused by the subscriber, actual costs for time and material will be charged to the subscriber. All rate changes must be approved by the Commission, which approval will take into consideration the profits derived from the System, the quality of services provided, the rate of return of investment and other factors that the Commission may determine reasonably relevant. The rate change request will be made by the Company by submission of a proposal to the Commission along with documen- tation of pertinent financial information. The Commission will hold a public hearing within three (3) weeks of receipt of the request. The Commission may undertake periodic evaluations of the System, to determine if changes in the System are required to meet -4- the needs of the Member Cities or to maintain a state-of-the-art System. The Company will pay to the Commission an annual franchise fee of five percent (5%) of the gross System revenues to pay the costs of administration of the Franchise and coordination of public access services. In the event of non-compliance by the Company with the terms of the Franchise or the Company's Offering, the City may seek an injunction, or may seek monetary damages payable from the perfor- mance bond or the security fund which the Company is required to furnish to the commission. The performance bond will be maintained in the amount of Five Hundred Thousand and N01100 Dollars ($500,000.00) during construc- tion of the System and may be reduced at the Commission's option upon completion of construction or may be increased by the Commission if additional System is to be constructed. The pur- pose of the performance bond is to assure construction and opera- tion of the System as contemplated by the Franchise. The security fund will be maintained in the amount of Fifty Thousand and No/100 Dollars ($50,000-00) through the term of the Franchise, as security for performance of the Company's obliga- tions under the Franchise. Damages may be drawn from the security fund for failure to comply with various provisions of the Franchise. In the event that the Company or a Member City is dissatisfied with a decision of the Commission under the terms of the -5- Franchise, the Company or City may appeal the decision to arbitra- tion, in accordance with a procedure set forth in the Ordinance. Throughout the term of the Franchise the Company will main- tain insurance covering officials and employees of the Company and the Member Cities. The Company and its subcontrac- tors will also comply with the Minnesota Workers' Compensation Act. The City will retain the right to revoke the Franchise for substantial violation of the Franchise. Revocation would only be accomplished after due notice and hearing has been provided to the Company. 'Unauthorized receipt of or tampering with cable service will be a misdemeanor. The City and Commission will have an opportunity to make an offer to purchase the System in the event that the Franchise is revoked, the System goes into receivership, or the Company is considering transferring ownership of the System. Individuals will be protected from discrimination and cable line tapping. Information pertaining to the viewing practices of a subscriber will not be given without that subscriber's per- mission. Installation of equipment on private property will only occur with the property owner's permission. Minor deviations from the terms of the Franchise may be requested by way of a variance application that must be approved by the Commission. Two (2) years before expiration of the Franchise, the Company may apply for Franchise renewal. The City and Commission will review the application, and will consider approval of the renewal request, inviting additional proposals, or purchasing the System. If the Franchise expires or is terminated, the City may require the Company to remove, at its own expense, all equipment from streets and public property within the City. The Company will comply with all applicable local, state, or federal laws. If any conflict exists, the Company and Commission will negotiate to review the Franchise. If any part of the Franchise is found to be invalid or is revised, the other provisions of the Franchise will nevertheless remain in effect. The ongoing administration of the Franchise will be the responsibility of the Commission, pursuant to the Joint Powers Agreement to which the City is a party. In the event the City withdraws from the Joint Powers Agreement, the City will assume all obligations of the Commission pursuant to the Franchise. The Franchise will be published in accordance with City requirements for adoption of ordinances and granting of franchises. The Offering of the Company will be incorporated by reference and made part of the Franchise. The Offering, along with the Franchise Ordinance and any ordinance summary prepared, will be permanently kept and available for public inspection at the following location: City Administrator's office, City Attorney's office, public library, Company's local office any school district in City, commission office and Minnesota Cable Communications Board office. -7-