1991-15BILL NO. 1991-15
An Ordinance Repealing the CATV Relief Ordinance,
Ordinance No. 1985-13, and CATV Relief Ordinance
Amendment, Ordinance No. 1988-22, Providing for the
Continuance of Certain Aspects of the CATV Relief
Ordinance, As Amended, and Restructuring the
Manner in which Local Programming is Funded
THE CITY COUNCIL OF THE CITY OF RICHFIELD ORDAINS AS FOLLOWS:
Section 1. Short Title
This Ordinance shall be known as the "Local Programming
Restructuring Ordinance."
Section 2. Background and Purpose
In 1984, Grantee requested that the Southwest Suburban Cable
Commission ("SWSCC") and Member Cities substantially restructure
certain aspects of the Franchise in response to the serious
financial difficulties experienced by the Grantee. The SWSCC and
Member Cities enacted the CATV Relief Ordinance and entered into
the Performance Agreement in response to Grantee's request. The
result was to reduce Grantee's Local programming Obligations and
Franchise Fee requirement, provide Grantee with an incentive to
refinance its debt obligation and increase the involvement of the
SWSCC and Member Cities in funding Local Programming Obligations
and monitoring Grantee's performance. The CATV Relief Ordinance
Amendment was enacted in 1988 as a part of the transfer of
control of Grantee and resulted in the continuance of the CATV
Relief Ordinance with some modification.
In 1990, Grantee petitioned SWSCC to extend the provisions of the
CATV Relief Ordinance and CATV Relief Ordinance Amendment
(collectively "Relief Ordinances") through the term of the
franchise. The SWSCC and Grantee reviewed the request through a
franchise. The SWSCC and Grantee reviewed the request through a
series of meetings of the SWSCC operating committee and
commission. The parties concur that the implementation of the
Relief Ordinances has contributed to the achievement of the
original goal of the SWSCC and its Member Cities: stabilizing
improving the financial condition of the Grantee. As a result,
certain SWSCC oversight responsibilities and reporting
requirements imposed by the Relief Ordinances and Performance
Agreement are no longer necessary.
The SWSCC and Grantee also concur that certain changes in the
usage of channels on the cable system and the provision of access
programming, community access programming and local origination
programming (collectively "Local Programming") resulted in a
channel line-up including more satellite programming services
BILL NO. 1991-15 -2-
than originally proposed by Grantee, as well as focusing Local
Programming channels so as to better serve the Member Cities.
The resultin~~ programming line-up provides diversity and appeal
to CATV subscribers while maintaining a strong Local Programming
component. It was agreed that the mix and level of satellite
services and Vocal Programming should be continued.
Finally, it was determined that since Grantee had improved and
stabilized its financial condition, it should assume full
responsibility for funding Local Programming as was contemplated
at the time of the Franchise award. Since the SWSCC will no
longer be a direct participant in the funding of Local
Programming, it was determined that the role of the SWSCC in the
oversight of Local Programming should be restructured.
The SWSCC has adopted a resolution approving the modification and
extension of certain provisions of the Relief Ordinances and
related documents ("SWSCC Resolution"). Each of the Member
Cities must also adopt a similar Resolution. This Ordinance will
be effective only if the terms of the SWSCC Resolution are
satisfied and Grantee agrees to be bound by the terms of this
Ordinance through the execution of an Acceptance Agreement.
Section 3. Relationship to Cable Communications Ordinance.
This ordinance does not permanently amend any provision of the
Cable Communications Ordinance (the "Franchise") but provides
that certain provisions of that ordinance are modified for a
period of time as provided herein. Except as expressly modified
in this ordinance and related agreements entered into pursuant to
this Ordinance, the provisions of the Franchise remain in full
force and effect. In the event of a conflict or inconsistency
between the Franchise or offering and any provision of this
Ordinance, the Restated Performance Agreement or any other
document entered into pursuant to this ordinance, the provision
of this ordinance, the Restated Performance Agreement or said
document entered into pursuant to this ordinance shall be
controlling so long as this ordinance remains in effect.
Section 4. Definitions
Subdivision 1. The definitions in the Franchise also apply
to this ordinance.
Subdivision 2. In addition, the following words and phrases
shall have the meanings given them:
(1) "Franchise" means the Cable Communications
Ordinance as now or hereafter amended.
(2) "Local Programming" means access, community access
and/or local origination programming as set forth in the
Restated Performance Agreement.
Bill No. 1991-15
-3-
(3) "Local Programming Obligations." means Grantee's
obligations under the Franchise and the Offering for
cablecast access, community access and local origination
programming.
(4) "News Show" means that show produced by Grantee
pursuant to an Agreement with the SWSCC dated January 23,
1991.
(5) "Relief Ordinances" means the CATV Relief
Ordinance as modified by the CATV Relief Ordinance
Amendment.
(6) "Restated Performance Agreement" means that
contractual agreement between Grantee, City and SWSCC
establishing the terms and conditions under which Grantee
will be required to fund and otherwise fulfill its Local
Programming requirements and establishing reporting
standards and criteria for Franchise compliance in other
areas.
(7) "Restructured Local Programming Obligations" means
Grantee's access, community access and local origination
programming obligations as set forth in the Local
Programming Restructuring Ordinance and the Restated
Performance Agreement. Compliance with the Restructured
Local Programming Obligations shall supersede and be in
complete satisfaction of the Local Programming Obligations.
Section 5. Repeal of Relief Ordinances.
This Ordinance hereby repeals the CATV Relief Ordinance,
Ordinance No. 1985-13 and the CATV Relief Ordinance Amendment,
Ordinance No. 1988-22 effective August 1, 1992. Through July 31,
1992, the provisions of the CATV Relief Ordinance as amended
shall remain in effect unless specifically superseded by this
Ordinance.
Section 6. Financial Terms.
While this Ordinance is in effect the obligations of Grantee are
modified to the extent provided in this section.
Subdivision 1. Franchise Fees - Percentage. The annual
franchise fee shall be 5$ of gross revenues payable as follows.
An annual franchise fee of 4$ shall be paid to City in equal
quarterly payments on or before the first day of each of the
months of November, February, May and August next following the
end of Grantee's fiscal year. These payments are consistent with
the payment arrangement contained in the Relief Ordinance. In
addition and pursuant to the new local programming funding
commitments set forth in Subdivision 4 herein, an annual
franchise fee of 1$ shall be paid to City in quarterly payments
on or before the first day of each of the months of November,
February, May and August on current year revenues beginning
August 1, 1992. For purposes of calculating the annual franchise
fee, all amounts spent to fund the Restructured Local Programming
Obligations shall be deducted from Gross Revenues.
Bill No. 1991-15 -4-
Subdivision 2. Letters of Credit. The City Council may by
resolution reduce the required amount of the Letter of Credit
below $50,000 if in its sole discretion it determines that a
lesser amount is reasonable and adequate to protect the public.
It may thereafter, by resolution, require the amount of the
Letter of Credit to be increased or fully restored to the amount
of $50,000. Grantee shall comply with this requirement within
sixty days after written notice has been given by the City.
Subdivision 3. Performance Bond. The Grantee may dispense
with the $300,000 performance bond required by the Franchise.
The City Council may thereafter by resolution require that such
bond, or similar bond in a lesser amount, be provided by Grantee.
Grantee shall comply with this requirement within sixty days
after written notice has been given by the City.
Subdivision 4. Restructured Local Programming Obligations.
Beginning with the third weekly show of November, 1991, Grantee
shall assume responsibility for funding the production of the
News Show. The News Show shall continue.-to be produced in a
manner which is generally consistent with the terms of the
Agreement between Grantee and the SWSCC, a copy of which is
attached hereto as Exhibit 1. However, the role of the SWSCC and
the Member Cities shall be advisory in nature an neither the
SWSCC or Member Cities shall be required to provide ongoing
direct financial support for the News Show. Grantee shall be
obligated to continue to fund and produce the News Show for a
period of two (2) years through the second weekly show of
November, 1993. Thereafter, Grantee shall be required to expend
at least $100,000 annually of its total funding requirement under
the Restructured Local Programming Obligations on local
origination programming. Such funding shall be expended by
Grantee in consultation with the SWSCC, as set forth in the
Restated Performance Agreement.
All provisions of the Relief Ordinances and
Performance Agreement related to the funding of Local Programming
shall remain in effect through July 31, 1992.
Beginning August 1, 1992, Grantee shall
assume full responsibility for funding the Restructured Local
Programming Obligations. From August 1 through December 31, •
1992, the budget for local programming shall be 5/12ths of
$347,000; provided that Grantee shall be required to meet all
Restructured Local Programming Obligations, including the
production of the News Show, irrespective of the actual cost of
meeting such obligations. Thereafter, the annual budget shall be
escalated by an amount equal to five percent (5$) as estimated in
Exhibit 2 hereto. Throughout the term of this Ordinance, Grantee
shall consult with the SWSCC concerning the provision of the
Restructured Local Programming Obligations pursuant to the terms
of the Restated Performance Agreement. The expenditures made
pursuant to this subdivision shall be in complete satisfaction of
Grantee's total Restructured Local Programming Obligations during
the period of this ordinance and shall be deemed to satisfy
Grantee's Local Programming Obligations as well.
Bill No. 1991-15 -5-
The amount of funding for the Restructured
Local Programming Obligations shall not include any costs of
operation, capital for access equipment replacement or
administration not directly related to the provision of Local
Programming. Grantee shall be responsible to maintain or
replace, as necessary, the equipment listed in the Exhibit to the
Contract for Local Programming Facilities, which is Exhibit l to
the Performance Agreement, and shall not offset such expenditures
against the funding for the Restructured Local Programming
Obligations.
Section 7. Automatic Termination of Relief Ordinance Provisions.
The provisions of this ordinance, and the reduced financial terms
contained herein may, at the option of the City, cease to be
effective, upon the occurrence of the earliest of any of the
following events:
Subdivision 1. Failure of the Grantee to restore or replace
the full required amount of the Letter of Credit as provided in
Article VIII, Section 4, paragraph H of the Franchise.
Subdivision 2. Failure of the Grantee to restore, replace
or increase either a Letter of Credit or bond within sixty days
of written notice by the City, as provided in Section 6,
Subdivisions 2 and 3 of this ordinance.
Subdivision 3. A holding or determination by any court or
agency that any term, condition or provision of this Ordinance is
invalid or unenforceable, as a result of any action taken by
Grantee or anyone acting on Grantee's behalf seeking such
determination.
Subdivision 4. Sale or transfer of all or substantially all
of the System to a person or entity other than a parent,
subsidiary, related corporation, affiliated corporation, partner
or joint venturer of Grantee or any parent of Grantee.
Subdivision 5. Termination of the Franchise.
Section 8. Other Terminations.
This ordinance may also be terminated for cause, under the same
procedures for termination as are contained in the Franchise, for
the following reasons:
Subdivision 1. All grounds for termination provided in the
Franchise and the Local Programming Restructuring Ordinance,
except to the extent that Grantee's performance obligations are
modified in the Local Programming Restructuring Ordinance.
Subdivision 2. Failure of the Grantee to comply with any of
the material provisions of the restated Performance Agreement.
Bill No. 1991-15 -6-
Section 9. Effective Date.
This ordinance shall be effective upon passage and adoption by
City and upon satisfaction of all of the following conditions:
(1) Publication of this Ordinance;
(2) Passage and adoption by each of the Member Cities of
the SWSCC of an Ordinance similar to this Ordinance
within 90 days of the adoption of this Ordinance.
(3) Execution by Grantee of all documents necessary to
repeal the Relief Ordinances and effectuate the Local
Programming Restructuring Ordinance. Such documents
shall include, but not be limited to, those documents
listed on Exhibit 3 attached hereto ("Documents"). The
executed Documents shall be delivered at a closing to
be held at the office of the SWSCC administrator within
90 days of the passage of the Local Programming
Restructuring Ordinance by the final Member City
("Closing").
(4) Conformance with the provisions of Article XIV of the
Franchise including delivery to the City of the
acceptance, opinion of legal counsel, guarantees, and
other documents as required by said Article XIV, before
or at Closing.
Passed by the City Council of the City of Richfield,
Minnesota this 25th day of November, 1991. ~,,
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Martin J.` Kirsch Mayor
ATTEST : J~
Thomas P. Ferber City Clerk
Minnesota Suburban Newspapers
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
SS
COUNTY OF HENNEPIN)
G r e~ o r v P t a c i n ,being duly sworn on an oath says that he/she is
the publisher or authorized agent and employee of the publisher of the newspaper known as
R i C h f i e ! d Sun -Current ,and has full knowledge of the facts which are
stated below.
(A) The newspaper has complied with all of the requirements constituting qualification as a qualified newspaper,
as provided by Minnesota Statute 331A.02, 331A.07, and other applicable laws, as amended.
(B) The printed B I. t ( N 0 . 29 91-15
which is attached was cut from the columns of said newspaper, and was printed and published once each week,
for O n e successive weeks; it was first. published on W e d n e 5 d a Y ,the 4 day
of December, 1g 91 ,and was thereafter printed and published on every to
and including ,the day of 19 ;and printed below is
a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size
and kind of type used in the composition and publication of the notice:
abcdefghijklmnopgrstuvwxyz --......
`~~~ X ..
8Y: -
TITLE: Gene ra I Manage r
Acknowledged before me on this
~4- day of December , 1g 91 .
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RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
{21 Maximum rate allowed by law for the above matter
$ 1.10 per line
(Line. word, or inch rate)
$ 74.9 per line
(Line, word, or inch rate)
(3) Rate actually charged for the above matter
62¢ per line
(Line. word, or inch rate)
City of Richfield
(Official Publication)
BILL NO. 1991-15
An Ordinance Repealing the CATV Relief Ordinance,
Ordinance No. 1985-13, and CATV Relief Ordinance Amendment,
Ordinance No. 1988-22, Providing for the Continuance
of Certain Aspects of the CATV Relief Ordinance,
As Amended, and Restructuring the Manner
in which Local Programming is Funded.
THE CITY COUNCIL OF THE CITY OF RICHFIELD ORDAINS AS FOLLOWS:
Section 1. Short Tine.
This ordinance shall be known as the "Local Programming Restructuring Ordinance."
Section 2. Background and Purpose.
In 1984, Grantee requested that the Southwest Suburban Cable Commission ("SWSCC") am
Member Cities substantially restructure certain as is of the Franchise in response to the seriou
financial difficulties experienced by the Grantee. The SWSCC and Member Cities enacted the CATS
Relief Ordinance and entered into the Performance Agreement in response to Grantee's request
The result was to reduce Grantee's Local Programming Obligations and Franchise Fee require
inert, provide Grantee with an incentive to refinance its debt obligation and increase the involve
inert of the SWSCC and Member Cities in funding Local Programming Obligations and monitor
ing Grantee's performance. The CATV Relief Ordinance Amendment was enacted in 1988 as r
part of the transfer of control of Grantee and resulted in the continuance of the CATV Rslief Or
dinance with some modification.
In 1990, Grantee petitioned SWSCC to extend the provisions of the CATV Relief Ordinance anc
CATV Relief Ordinance Amendment (collectively `Relief Ordinances") through the term of the
franchise. The SWSCC and Grantee reviewed the request through a franchise. The SWSCC anc
Grantee reviewed the request through a series of meetings of a SWSCC oppeerraating committer
and comm;ecion. The parties concur that the implementation of the Relief Oi~iinances has con
tributed to the achievement of the Relief Ordinances has contributed to the achievement of thr
original goal of the SWSCC and its Member Cities: stabilizeng and improving the financial cords
lion of the Grantee. As a result, certain SWSCC oversight responsibilities and reporting re
quirements imposed by the Relief Ordinances and Performance Agreement are no forges
necessary.
The SWSCC and Grantee also concur that certain changes in the usage of channels on the cablr
system and the provision of access programming, community access programming and fora:
o tron programming (collectively `Local Programming") resulted in a channel line-up in
cliu ' more satellite progr services than originally Proposed by Grantee, as well as focus
~ L.ocal Programming cliar~s~o as to better serve the Member Cities. The resulting Program
rriirig line-up provides diversity and appeal to CATV subscribers while maintaining a strong Luca
Programmrng coinponeut. It was agreed that the mix and level of satellite services and I.oca:
Programming should be continued.
Finally, it was determined that since Grantee had improved and stabilized its financial cords
lion, it should assume full responsibility for funding Local Programming as was contemplates
at the time of the Franchise award. Since the SWSCC will no longer be a duect participant it
the funding of Local Programming, it was sk:tertnined that the sole of the SWSCC in the oversight
of I.ocalWSProgramming should be restructured.
-The S CCCC has adoppted a resolution approving the modification and extension of certain pro
visions of the Relief Orditiatices and related documents ("SWSCC Resolution").Each of the Membea
Cities must also adopt a similar Resolution. This Ordinance will be effective only if the term:
of the SWSCC Resolution are satisfied and Grantee agrees to be bound by the terms of this Or
dinance through the execution of an Acceptance Agreement. '
Section 3. Relationship to Cable Communications Ordinance.
This ordinance does not permanently amend airy provision of the Cable Communications Or
dinance (the "Franchise") but provides that certain provisions of that ordinance are modified
for a period of time as provided herein. Except as expressly modified ire this ordinance and related
agreements entered into pursuant to this Ordinance, the provisions of the Franchise remain in
full force and effect. Ea the event of a conflict or inconsistency between the Franchise or offeriti@
and any provision of this Ordinance, the Restated Performance Agreement or any other docu
inert entered into pursuant to this ordinance, the provision of this ordinance, the Restated Perfor
manse Agreement or said document entered into pursuant tq this ordinance shall be controllin@
so long as this ordinance remains in effect.
Section 4. Definitions.
Subdivision 1. The definitions in the Franchise also apply to this ordinance.
Subdivision 2. In addition, the followrng words and phrases shall have the meanings given them:
(1) "Franchise" means the Cable Communications Ordinance as now or hereafter
amended.
(2) "Local Programming" means access, community access and/or local origination
programming as set forth in the Restated Performance Agreement.
(3) "Local Programming Obligations" means Grantee's obligations under the Fran-
chise and the Offering for cablecast access, community access and local origination
P (4`Nmmewsth Show" means that show produced by Grantee pursuant to an Agreement
with the SWSCC dated January 23, 1991.
(5) "Relief Ordinances" means the CATV Relief Ordinance as modified by the CATV
Relief Ordinance Amendment.
(8) "Restated performance Agreement" means that contractual agreemeht between
Grantee, (sty, and SWSCC estab' berg Ure terms and conditions under which Grantee
wit be requited to fund and otherwise fulfill its Local Programming requirements and
esfab;,sh;"g reporting standards and criteria for Franchise compliance in other areas.
(7) "Restructured Local Pragrarnming Obligations" means Grantee's access, communi-
ty access and local origination programming obligations as set forth in the Local Pro-
grarnmin~ Restructuring Ordinance and the Restated Performance Agreement. Com-
pliance wrth the Restructured Local Programming Obligations shall supersede and be
m complete satisfaction of the Local Programming Obligations.
Section 5. Repeal of Relief Ordinances.
This Ordinance hereby repeals the CATV Relief Ordinance, Ordinance No. 1985-13 and the CATV
Belief Ordinance Amendment, Ordinance No. 1988-22 effective August 1, 1992. Through July 31,
1992, the provisions of the CATV Relief Ordinance as amended shall remain hi effect unless
specifically superseded by this Ordinance.
Section 8 -Financial Terms.
While this Ordinance is W effect the obligations of Grantee are modified to the extent provided
in this section.
Subdivision 1. Franchise Fees -Percentage. The annual franchise fee shall be 59b of gross
revenues payable as follows. An annual franchise fee of 4qb shall be paid to City in equal quarter-
ly payments on or before the first day of each of the months of November, February, May and
August next following the end of Grantee's fiscal year These payments are consistent with the
payment arrangement contained in the Relief Ordinance. In addition and pursuant to the new
f~ o progra~ berg funding commitments set forth in Subdivision 4 herein, an annual franchise
f 19b paid to CIty in quarterly payments on or before the first day of each of the
months of November, February, May and August on current year revenues beginning August 1,
1992. For purposes of calculating the annual franchise fee, all amounts spent to fund the Restruc-
tured Local Programming Obligations shall be deducted from Gross Revenues.
Subdivision 2. Letters of Credit. The City Camcil may by resolution reduce the required amount
of the Letter of Credit below $50,000 if in its sole discretion it determines that a lesser amount
is responsible and adequate to protect the public. It may thereafter, by resolution, require the
amount of the Letter of Credit to be increased or fully restored to the amount of $50,000. Grantee
shall comply with this requirement within sixty days after written notice has been given by the Gtty.
Subdivision 3. Performance Bond. The Grantee may dispense with the $300,000 performance
bond required by the Franchise. The City Council may thereafter by resolution require that such
bond, or similar bond in a lesser amount, be provided by Grantee. Grantee shall comply with
this requirement within sixty days after written notice has been given by the City.
Subdivision 4. Restructured Local Programming Obligations. Beginning with the third weekly
show of November, 1991, Grantee shall assume responsibility for funding the production of the
News Sham. The News Show shall continue to be produced in a manner which is generally consist-
entwith td,e terms of the Agreement between Grantee and the SWSCC, a copy of which es attach-
ed hereto as Exhibit S :However, the role of the SWSCC and the Member Cities shall be advisory