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Home My WebLink About07/28/1981 7 TENTATIVE AGENDA SHAKOPEE, MINNESOTA ADJ . REG. SESSION. JULY 28, 1981 Mayor Harbeck presiding 1 ] Roll Call at 7 : 30 P.M. 2 ] Reapportionment of Scott County Commissioner Districts - Ordinance No . 70, Setting Boundaries Between All Precincts of the City of Shakopee 3 ] Res . No . 1888 , A Resolution Declaring The Cost To Be Assessed And Ordering The Preparation Of Proposed Assessment 80-4 (County Road 16 Utilities) 4] Change Order - Hauer Trail Laterals 80-1 5 ] Change Order - East View 80-2 2 6 ] Request by the Mayor to Set Implementation Date for New Vacation Policy 1/1/82 - Discussion 7 ] 8: 30 P.M. - Work Session with Ad Hoc Cable Communications Committee a] Overview of Request for Proposals (RFP) (including ordinance) by Staff b] Discussion of Provisions of RFP by Committee and Council 1 . Initial Service Area (see attachments ) 2 . Other c ] Comments by City Attorney d] Report on Resolution No . 1796 z. ' 8 ] 9 : 30 P.M. - Work Session - Five Year Capital Improvement Plan and Five Year Capital Outlay Plan ( bring item 10a from July 7th agenda) (Planning Commission reviewed CIP and officially forwarded it to City Council on July 23 , 1981) 9 ] Adjourn John K. Anderson City Administrator MEMO TO: John K. Anderson, City Administrator (7t-Z. FROM: Judith S . Cox, City Clerk RE : Reapportionment of Scott County Commissioner Districts DATE: July 23 , 1981 INTRODUCTION The 1980 official census figures were certified to the State on March 25th, 1981 . The county has 180 days from March 25th to reappor- tion the commissioner districts in such a manner so that no district is larger than 5% nor smaller than 5% of one-fifth of the total county population . BACKGROUND In addition to the maximum 5% ± , there are additional restrictions placed on the county for the reapportionment . The County Administrator, Ass ' t . County Administrator, Mayor Harbeck, City Administrator, and Dick Mertz, currently representing the 3rd Commissioner District , have spent a considerable amount of time in examining the alternatives for the re- apportionment of the Scott County Commssioner Districts . Keeping all the restrictions in mind, it appears that there are two distinct reapportionment alternatives which greatly affect the City of Shakopee -- 1) dividing Shakopee in half so that it is represented by two Commissioners ; 2) dividing Shakopee in such a manner that most of it is within one Commissioner District and two small areas are rep- resented by two other Commissioners . It is my understanding that there is some preference to the second alternative which would guarantee at least one Commissioner represent- ing the City of Shakopee . In order to reapportion the county to provide this alternative , the City Council is being asked to redefine Shakopee ' s precincts . ALTERNATIVES : 1) Allow the reapportionment of Scott County Commissioner Districts in such a way so that Shakopee is divided in half and represented by two commissioners . (Probably East and West of Lewis or Holmes Street) . No change of current City precincts would be needed at this time . ' 2 ) Redefine Shakopee ' s precincts creating two new precincts each of which would be represented by a second and third commissioner, with the bulk of Shakopee in the Third Commissioner District . (See map attached. ) Third precinct would be divided at 11th Avenue so that res- idents north of 11th Avenue would be in one precinct and residents south of 11th Avenue would be in another precinct . Fourth precinct would be divided at CR-83 so that residents west of CR-83 would be in one precinct and residents east of CR-83 would be in another precinct . (There are other alternatives for redefining the 3rd and 4th precincts ; however, City staff strongly prefers this particular division which would make the administration of holding elections less complicated, both now and in the future . ) Reapportionment of Scott County Commissioner Districts July 23, 1981 Page -2- RAMIFICATIONS: The ramifications of creating two additional precincts are minimal , provided it is only a temporary measure . Creating the additional precincts at this time will permit the county to reapportion the Commissioner Districts in a balanced manner which will also afford Shakopee a commissioner representing a bulk of its population. After the required reapportionment is completed by the county, according to law, there is nothing stopping the City from again redefining its precincts to fit its own needs . Therefore , I would propose to bring to Council , first part of next year, a new plan for Shakopee ' s precincts , which will accommodate our needs , and at the same time reduce our precincts to four, which plan may include returning to the current 3rd and 4th precinct boundaries . As a result of the creation of two additional precincts , staff proposes that voters of precincts 4 West and 4 East will continue to vote at the Eagle Creek Town Hall . It will be necessary, however, to have two separate teams of election judges and polling stations within the same building. Voters within precinct 3 North would continue to vote at the Utilities building; however, voters in 3 South will vote at the Junior High School . [Polling places must lie within 1500 ft . of the boundary of the precinct. ] I have checked with the principal of the Junior High School and he has agreed to provide us with an area for this prupose at no cost . The additional cost of creating two additional precincts is minimal . It would cost approximately $300. 00 for the extra election judges and it would cost staff time to notify all registered voters who will be affected by this change , both now, and again when the boundaries are changed next yrar, plus postage at approximately $100. 00. RECOMMENDATION: I would recommend redefining Shakopee ' s precinct boundarles as proposed in alternative no. two and on the attached map, as this seems to be the best alternative to accommodate the most concerns that have been raised. ACTION RECOMMENDED: Offer Ordinance No . 70, Setting Boundaries Between All Precincts of the City of Shakopee , and move its adoption. jc ORDINANCE NO . 70 , FOURTH SERIES AN ORDINANCE AMENDING THE CITY CODE SETTING BOUNDARIES BETWEEN ALL PRECINCTS OF THE CITY OF SHAKOPEE BE IT ORDAINED BY THE CITY COUNCIL. OF THE CITY OF SHAKOPEE AS FOLLOWS : SECTION I : Shakopee City Code, Section 2. 20 is hereby amended as follows, to-wit : The Precincts shall be limited and bounded as follows: That Fuller Street is hereby designated as the set boundary between the First Precinct and the Second Precinct and that Spencer Street and County Road 79 is hereby designated as the set boundary between the Second Precinct and the Third Precinct; and that Marschall Road and County Road 17 is hereby designated as the set boundary between the Third North and Third South Precincts and between the Fourth West Precinct; and that CR-83 is hereby designated as the set boundary between the Fourth West Precinct and the Fourth East Precinct; and that Eleventh Avenue, which is 677.86 feet South of 10th Avenue, is hereby designated as the set boundary between the Third North Precinct and the Third South Precinct. , SECTION II : Certain procisions of the Shakopee City Code adopted by reference. Shakopee City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the entire City Code including the penalty provisions and Section 2. 99 , which, among other things, contains penalty provisions, are hereby adopted in their entirety by refenence as though repeated verbatim herein. SECTION III . Provisions for After Adoption After adoption, signing, attestation, this ordinance shall be published once in the official newspaper of the City of Shakopee and then shall be in full force and effect. Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota, held this 28th day of July, 1981 . Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form this day of July, 1981 . City Attorney MEMO TO: John Anderson City Administrator FROM: H. R. Spurrier City Engineer 1,C RE: County Road 16 Utilities oprovement 80-4 DATE: July 24, 1981 Introduction: One assumption made for the bond sale for funds for the above-referenced project was that this work be assessed in 1981, payable in 1982. Background: The attached resolution establishes the amount to be specially assessed for the above-referenced project. The amount is not necessarily the actual cost since the construction cost contains a $16,741.00 contingency to cover any over-runs during construction. It is my opinion that the amount of contingency is sufficient to cover unexpected expenses that are a part of this project. In view of the fact that one more year of capitalized interest would be required in the event this project were not assessed in 1981, and in view of the fact that such a cost would represent a burden to the City, it is recommended that the amount of $243,989.00 be specially assessed. Recommendation: Staff recommends that City Council adopt Resolution No. 1888, A Resolution Declaring The Cost To Be Assessed And Ordering The Preparation Of Proposed Assessment 80-4 (CountyiRoad 16 Utilities). HRS/jiw Attachment p-3 RESOLUTION NO. 1888 A Resolution Declaring The Cost To Be Assessed And Ordering The Preparation Of Proposed Assessment 80-4 (County Road 16 Utilities) WHEREAS, a contract has been let for the improvement of: County Road 16 east of County Road 17 and west of the east line of Section 6-115-22 by sanitary sewer and watermain and the contract price for such improvements is $167,410.30, the construction contingency amounts to $16,741.00 and the expenses incurred or to be incurred in the making of such improvements amounts to $59,837.70 so that the total cost of the improvements will be $243,989.00 and of this cost the City will pay $ 0.00 as its share of the cost. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. The cost of such improvement to be specially assessed is hereby declared to be $243,989.00. 2. The City Clerk, with the assistance of the City Engineer shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and he shall file a copy of such proposed assessment in his office for public inspection. 3. That the City Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. BE IT FURTHER RESOLVED: 1. That a hearing shall be held on the 25th day of August 1981, in the Council Chambers of City Hall at 7:35 PM to pass upon such proposed assess- ments and at such time and place all persons owning property affected by such improvements and proposed assessments will be given an opportunity to be heard with reference to such assessment. 1 Resolution No. 1888 2. That the City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper of the City of Shakopee at least two weeks prior to the hearing and he shall state in the notice the total cost of the improvements. He shall also cause mailed notice of such hearing to be given the owner of 1 each parcel described in the assessment roll not less than two weeks prior 1 1 to the hearing. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of 1981. Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form this day of , 1981. City Attorney MEMO TO: John Anderson City Administrator / FROM: H. R. Spurrier *i City Engineer ��!%► "" i RE: Sanitary Sewer Recon•triction in Main Street - South of 1st Avenue DATE: July 24, 1981 Introduction: Pursuant to the direction of City Council, staff received proposals from several contractors for the above-captioned reconstruction. Background: Pursuant to earlier discussions with City Council, staff has received quotations from contractors presently under contract with the City and private contractors not so obligated and the apparent low is Parrott Construction, Inc. ,. presently finishing Hauer Trail Laterals. The estimated cost of the improvement is $4,200.00. In addition to that work, the City will offer to reconstruct service lines in the right-of-way at the prices quoted by Parrott Construction, Inc. It will not be mandatory that the services be reconstructed and insulated. However, the prices we do have are extremely low. As a method of financing, it is possible to assess that cost over a period of ten years, much in the manner that the watermain was assessed to Mr. Siebenaler as a part of the Minnesota Street Project. Recommendations: Staff recommends that: 1. Council approve Change Order No. 1, a Change Order including the Main Street Sanitary Sewer Reconstruction in the Hauer Lateral Contract; 2. That City staff be directed to contact property owners and ascertain whether the property owners desire to have service lines in public right-of-way reconstructed and insulated and the cost spread over ten years in a special assessment. HRS/jiw Attachment • r CHANGE ORDER Change Order No. : 1 Project Name: Hauer Trail Laterals Date: July 16, 1981 Contract No. : 80-1 Original Contract Amount $ 44,422.87 Change Order(s) No. thru No. $ O.00 Total Funds Encumbered Prior to Change Order $ 44,422.87 Description of Work to be (Added/Deleted): Insulation of approximately 180 L.F. of sanitary sewer main and services in Main Street south of 1st Avenue subject to Special Provisions (attached) The above described work shall be incorporated in the Contract, referenced above, under the same conditions specified in the original Contract as amended unless otherwise specified herein. Any work not so specified shall be performed in accordance with the Standard Specifications adopted by the City of Shakopee, Minnesota. The amount of the Contract shall be (increased/ x by $ 4,200.00 . The number of calendar days for completion shall be (increased/decreased) by . Completion date shall be according to attached special provisions Original Contract Amount $ 44,422.87 Change Order(s) No. 1 thru $ 4,200.00 Total Funds Encumbered $ 48,622.87 Completion Date: See above The undersigned Contractor hereby agrees to perform the work specified in this Change Order in accordance with the specifications, conditions and prices specified herein. i Contract /?,, ,,-4n.? isu-, ,, BY: /1,-4-,,, 2., - Title: ,t1 • Date: 741, g// "ROVED , I 'ECO I ' D: \� S+i Vi e 1 4- /' lty g n':-r ate APPRO'EI. City of Shakopee , By: Mayor Date Approved as to form this day of City Administrator Date 19 City Clerk Date City Attorney HAUER 'TRAIL LATERALS Attachment To CHANGE ORDER NO. 1 (Main Street Sanitary Sewer Insulation) Contract Items Item No. Contract Item Unit Quantity Unit Price Amount 1 Pipe Insulation L.F. 180 $ 11.00 $1980.00 2 Pavement Restoration S.Y. 160 12.50 2000.00 3 Sod S.Y. 40 5.50 220.00 TOTAL $4200.00 Alternate Items Item No. Contract Item Unit Quantity Unit Price Amount 1 8" PVC w/insulation L.F. 120 $ 15.00 $1800.00 2 It" C.I. Service Pipe L.F. 60 16.00 960.00 w/insulation 3 6" C.I. Service Pipe L.F. 60 17.50 1050.00 w/insulation �+ 8" x 4" Wyes Ea. 2 30.00 60.00 5 8" x 6" Wyes Ea. 2 33.00 66.00 ALTERNATE TOTAL $3936.00 SPECIAL PROVISIONS for MAIN STREET SANITARY SEWER INSULATION PROJECT Shakopee, Minnesota SECTION I GENERAL REQUIREMENTS 1. SCOPE OF CONTRACT: The work to be done under this contract shall include the furnishing of all materials, labor, tools, and equipment to construct complete, in-place sanitary sewer, surface restoration, together with all necessary appurtances and related items of work; all according to plans and specifications herein. Work includes complete insulation of approximately 120 feet sanitary sewer and related items or work. If in the opinion of the Engineer, the existing sanitary sewer main and service pipe is found to be in poor condition, it shall be removed and replaced with new materials. 2. LOCATION: The project is located on Main Street between 1st Avenue and Bluff Avenue, in the City of Shakopee. 3. RIGHT-OF-WAY; All work is located in dedicated streets or in easements acquired for the work. 4. TIME OF COMPLETION: • The entire project shall be completed, including restoration and clean up, by August 31, 1981. (See Section 5 - Failure to Complete Work on Time). 5. FAILURE TO COMPLETE THE WORK ON TIME Should the Contractor fail to complete the sewer construction as specified in Article 5 in the Special Provisions, the amount of money to be deducted in accordance with the City of Shakopee Standard Specifications, General Conditions, Article 11, "Failure to Complete the Work on Time", shall be fifty dollars ($50.00) per calendar day. SP-1 6. SPECIFICATIONS WHICH APPLY: "Standard Specifications for Highway Construction" prepared by the Minnesota Department of Transportation (Mn/DOT) shall govern except as modified by the Special Provisions and the City of Shakopee Design Criteria and Standard Specifications for Construction and Reconstruction of Roadways, Sanitary Sewer and Storm Sewer and Shakopee Public Utility Commission Watermain and Serviceline Specifications. 7. PRE-CONSTRUCTION CONFERENCE: Prior to the beginning of any work under this contract, the Owner or Engineer will notify the Contractor as to the time and place for a Pre-Construction Conference. This meeting will be held for the purpose of coordinating the work with the others, to discuss construction needs and procedures, to determine the schedule of work, and to finalize other administrative details. The Contractor shall be responsible for having those individuals from his firm and from any sub-contractor firms who will actually be on the site and in charge of the work present at this conference. 8. HOURS OF OPERATION: The Contractor shall confine his hours of operation to between 7:00 AM and 6:30 PM Monday through Saturday. Under emergency conditions, this limitation may be waived with the written consent of the Engineer, in conjunction with qualified local authority. 9. DUST AND NOISE CONTROL: The Contractor shall be responsible for :.weeping, cleaning or applying water to control dust and maintain cleanliness of existing streets during the life of the Contract. It shall be the responsibility of the Contractor to make the arrangements for water pursuant to Article 12 of this section and shall pay all costs therefore. All dust control and maintenance measures shall be incidental to the project and no direct compensation will be made thereof. • 10. TESTING OF WORK: In addition to provisions of Article No. 6 of the Shakopee Standard Utility Specifications, all testing of backfill compaction shall be paid by the City, excepting that the additional costs of re-testing due to the failure of an earlier test shall be borne by the Contractor. All other testing materials furnished for the project shall be the responsibility of the Contractor; no direct compensation shall be allowed therefore. SP-2 C(1 11. USE OF THE SITE BY OTHERS: The Contractor shall conduct his operation in such a manner that provides reasonable access to the project site. The Contractor shall restore trenches as sanitary sewer insulation progresses. The trench shall be completely backfilled at the end of each day. 12. WATER FOR CONSTRUCTION: Unauthorized use of Shakopee Public Utility Commission facilities will be subject to a Five Hundred Dollar ($500.00) fine. The Contractor shall make all arrangements with and pay all required fees to the Shakopee Public Utility Commission for the use of water for the project. This section shall apply to water used for compaction, stabilization, dust control and testing of pipe. Application of water in all cases shall be incidental to the project and no direct compensation will be made therefore. 13. PAVEMENT RESTORATION: (2621.3 J2) : The first sentence shall be amended to read: The in-place pavement including aggregate base course shall be restored as indicated in the plans. The bituminous material used for the patching mixture shall be AC-1 120-150 penetration. Pavement restoration shall be measured by the number of square yards of pavement replaced. The bid price shall be full compensation for subgrade and edge preparation, the placement and compaction of aggregate base course and bituminous patching mixture and other work incidental to construction. 14. TURF RESTORATION: The Contractor shall place 4 inches of topsoil conforming to Mn/DOT Specifications 3877 Type A. Sod shall be placed in accordance with Mn/DOT Specification 3878. Turf restoration shall be measured and paid for at the contract price per square yard. The bid price shall be full compensation for topsoil borrow and placement, sod and placement and other work incidental to construction. SP-3 5 MEMO TO: John Anderson City Administrator frs FROM: H. R. Spurrier City Engineer . RE: Eastview Additio Imp •vele t 80-2 DATE: July 24, 1981 Introduction: Change Order No. 1 for Project No. 80-2, provides for the completion of alley construction and detention pond construction in Eastview 1st Addition. Background: The work specified in Change Order No. 1, provides for an increase of unit prices and provides for work not specified in the original contract. The work not specified in the original contract is additional alley grading not completed by the developer. The additional cost of grading and mobilization amounts to $1,000.00. The additional cost as a result of unit price increases, amounts to $1,924:10. The total amount of the Change Order amounts to $2,924.10. Recommendation: It is the recommendation of City staff that appropriate officials be authorized to execute Change Order No. 1 for Eastview 1st Addition Improvements Contract No. 80-2. HRS/jiw Attachment CHANGE ORDER Change Order No. : 1 Project Name: Eastview 1st Addition Improvements Date: July 23, 1981 Contract No. : 80-2 Original Contract Amount $ 81,384.00 Change Order(s) No. thru No. $ Total Funds Encumbered Prior to Change Order $ 81,384.00 Description of Work to be (Added/ $: 1. Increased unit prices as designated units 2. Remobilization fee 3. Additional alley grading 4. Completion date change (See Attachment) The above described work shall be incorporated in the Contract, referenced above, under the same conditions specified in the original Contract as amended unless otherwise specified herein. Any work not so specified shall be performed in accordance with the Standard Specifications adopted by the City of Shakopee, Minnesota. The amount of the Contract shall be (increased/I 1 kali) by $ 2,924.10 3 OX i} X FX�S X O X WIVE. X R. X XXXXXXXXXXXX Original Contract Amount $ 81,384.oO Change Order(s) No. 1 thru $ 2,924.10 Total Funds Encumbered $ 84,308.10 Completion Date: August 31, 1981 The undersigned Contractor hereby agrees to perform the work specified in this Change Order in accordance with the specifications, conditions and prices specified herein. Contractor: By: Title: Date: AP:'.VED AND 1MME DD: pit En:in-e 11 Date APPROVED: City of akopee By: Mayor Date Approved as to form this day of City Administrator Date 19 City Clerk Date City Attorney EASTVIEW 1ST ADDITION IMPROVEMENTS Attachment to Change Order No. 1 Project No. 80-2 1. Increased Unit Prices A. 188 Tons of 2341 Bituminous Wearing Course from $20.00 to $23.05. Total additional cost -- $ 573.40. B. 560 Tons of Cl.-5 Base material from $5.90 to $6.22. Total additional cost -- $ 179.20. C. 650 C.Y. of black dirt from $8.25 to $9.24. Total additional cost -- $643.50. D. 4 Acres of seed, mulch & fertilizer from $1100.00 to $1232.00. Total additional cost -- $ 528.00. 2. Remobilization Fee: - A lump sum amount of $ 500.00. 3. Additional Alley Grading: - Shall be performed at an hourly rate and shall not exceed total cost of $ 500.00. 4. Completion Date Change: - Revised completion date of August 31, 1981. GRAND TOTAL OF ADDITIONAL COST BY CHANGE ORDER NO. 1 $2924.10 MEMO TO: John Anderson City Administrator FROM: H. R. Spurrier .• City Engineer '- O/P' t RE: Weinandt Acres st Ad• 't'on Contract No. 80-9 DATE: July 24, 1981 Introduction: Work required to complete the above-referenced contract and settle several disputes has finally been resolved. Background: At the end of the construction season and at the end of the paving season in 1980, the City attempted to pave 29th Avenue but sub-grade conditions would not permit such work activity. During 1980, an additional 7 inches of Class 5 was placed on the roadway in an effort to stabilize the sub-grade. Those efforts proved fruitless and it was the decision of the City to delay paving until 1981. In addition to the sub-grade problems, the developer's engineer had underestimated the amount of excavation required to construct the roadway. The developer's engineer had underestimated that amount by more than 5,000 cubic yards. Change Order No. 1 increases and pays for that quantity. After the additional Class 5 was placed on 29th Avenue, it was no longer necessary to place 2 inches of 2331 Binder Course and therefore, that Binder Course is deleted. Since the contractor was not able to complete this work in sequence and has to remobilize to complete the work, an additional $500 is added for mobilization. The total amount of the contract is $3,812.25. Recommendations: Staff recommends that Council authorize the appropriate City officials to execute Change Order No. 1, a Change Order adjusting quantities and altering the work for Weinandt Acres 1st Addition Contract No. 80-9. HRS/jiw Attachment CHANGE ORDER Change Order No. : 1 Project Name: Weinandt Acres 1st Addition Date: July 24, 1981 Contract No. : 80-9 Original Contract Amount $ 47,207.35 Change Order(s) No. thru No. $ Total Funds Encumbered Prior to Change Order $ 47,207.35 Description of Work to be (Addedla?M: and Deleted: 1. Increase in unit price (from $17.00/Ton to $20.05/Ton) on 2341 Wear Course. 265 Ton to be placed on C.O. No. 1 2. 196 Ton of 2331 Binder Course to be deleted by C.O. No. 1. 3. Contract quantity of Common Excavation to be increased by 5760 C.Y. by C.O. No. 1 4. Mobilization fee of $500.00 to be aid by C.O. No. 1 The above descried work shall be incorporated in the Contract, referenced above, under the same conditions specified in the original Contract as amended unless otherwise specified herein. Any work not so specified shall be performed in accordance with the Standard Specifications adopted by the City of Shakopee, Minnesota. The amount of the Contract shall be (increased/ Q ) by $3812.25 . The completion date shall be changed from October 31, 1980 to August 31, 1981. oacxXavozzadmatoofftwoo@ax xxrthim w o 0.a t.IA*. 'le ec,:. .to•,.a Original Contract Amount $ 47,207.35 Change Order(s) No. 1 thru $ 3,812.25 Total Funds Encumbered $ 51.019.60 Completion Date: August 31, 1981 The undersigned Contractor hereby agrees to perform the work specified in this Change Order in accordance with the specifications, conditions and prices specified herein. Contractor: By: Title: Date A '•'OVED A • 0,!-.:. DED: v i /4 • - C, _ & w 4111\16.- Ilk ity E�� e!r Ili Dat 0;Y( APPROV v City of Shakopee By: Mayor Date Approved as to form this day of City Administrator Date -- 19_ City Clerk Date City Attorney 77q MEMO TO: John K. Anderson, City Administrator FROM: Jeanne Andre , Administrative Assistant RE : Draft RFP for July 28, 1981 Council meeting DATE : July 23 , 1981 Enclosed is a packet of the Request for Proposals (RFP) as recommended by the Ad Hoc Cable Communications Committee to the City Council for discussion at the joint work session to be held July 28, 1981 . This is a draft , as is evidenced by the rough copy. After input by the City Council) the City Attorney, and the public, a final copy will be prepared for distribution to the City Council , the Committee, cable operators and other interested par- ties . The following comments are to explain the current status of various sections of the RFP. 1 . Sections I and II , General Instructions and Desired Ser- vices and Bidding Requirements (draft No. 4) comprise the revised portions of the RFP Draft No. 2 which was pre- viously presented to the City Council . I will be pre- pared to outline those changes instituted by the Commit- tee since previous Council review. Section II B. , Ini- tial Service Area and Line Extension Policy, has proved controversial and the Committee has agreed to disagree on this item and present various perspectives to the City Council for consideration at the work session. 2 . Section II , Map, defines the initial service area as provided Section II B. , in draft no. 4, of the RFP. 3 . Section IV. Evaluation Critera and Weights , remains as adopted at the April 28, 1981 Council meeting, with the addition of sub-categories by the consultant to clari- fy where these items will be placed for evaluation pur- poses by CTIC Associates . 4. Section V, Uniform Data for Applicants , is called for in the narrative of Sections I and II . I have compiled the data which is as yet incomplete . Lou Van Hout at Shakopee Public Utilities has agreed to provide infor- mation on aerialand underground plant miles . S . Section VI . , Application Forms , is material supplied by CTIC Associates to provide a uniform format for compari- son of proposals submitted. These forms will be revised to reflect recent Committee decisions related to Sec- tions I and II and the preliminary ordinance as well as any additional changes made by the City Council . 6 . Section VII . , Preliminary Draft Ordinance , was prepared by Attorney Adrian Herbst and revised based on comments by Consultant , Committee and Staff to bring it in line with previous policies and decisions related to the franchise . The City Attorney will comment on the ordi- nance at the meeting. Draft RFP for July 28, 1981 Council meeting July 23 , 1981 Page 2 7 . Sections VII and IX, Resolution 1796 and needs Assess- ment have been previously reviewed by the City Council and are not included here . These documents will be enclosed in the final RFP to provide comprehensive information to all applicants . City of Shakopee Request for Proposals and Instructions to Applicants To Provide Cable Communications Services to the City of Shakopee City of Shakopee 129 E. First Avenue Shakopee, MN 55379 Telephone : (612) 445-3650 Adopted: , el 3 , fq01 ItAqit TABLE OF CONTENTS Section Title Page I . General Instructions A. Filing for Application B. Form of Application C . Clarification of Application Documents D. Amendment to Application E. Application Selection Procedures F. Uniform Data Requirement G. Cable Communications Ordinance H. Citizen ' s Advisory Committee I . Policy on Communications II . Desired Services and Bidding Requirements A. Franchise Fee B. Initial Service Area and Line Extension Policy C. System Design and Construction D. Renegotiation E. Underground Cable F. Liquidated Damages and Performance Bond G. Services H. Institutional Capacity I . Priorities and Criteria for Evaluating Applicant J. Legal Qualifications K. Character Qualifications L. Financial Plan M. Demonstrated Experience in Operating a CATV System Section Title Page III . Map IV. Evaluation Criteria and Weights V . Uniform Data for Applicants VI . Official Application Forms List of Contents VII . Preliminary Cable Communications Franchise Ordinance Findings VIII . Resolution No . 1796 - A Resolution Establishing a Uniform Policy Regarding Communications from Cable Communications Companies and their Representatives IX. Shakopee Cable Communications Needs Assessment REQUEST FOR PROPOSALS - DRAFT NO. 4 I . GENERAL INSTRUCTIONS A. Filing for Application Thirty (30) copies of each applicant ' s notorized proposal along with a certified check in the amount of $6 ,000.00 shall be submitted and made payable to the City of Shakopee , in care of , City Clerk City Hall 129 East First Avenue Shakopee , Minnesota 55379 The filing fee will be used to offset evaluation expenses incurred by the City in the granting of the franchise . Filing fees collected by the City and not expended for evaluation will be refunded on an equal basis to all applicants . Any additional expenses incurred by the City will be paid by the successful franchisee in the form of an initial franchise fee not to exceed $20,000. The closing date for the receipt of application will be (90 days from date of publication) at which time all proposals will be opened. The City reserves the right to extend the deadlinejto waive irregularities and to award the franchise in the best interest of the City. The franchisor is the City of Shakopee . B. Form of Application PleaseNote : All applications must be on the official forms provided by the City of Shakopee in Section VI . The application forms have been designed to furnish all the pertinent data that will be used by the City in making its evalua- tion in accordance with the rules of the Minnesota Cable Communica- tions Board. All applicants must use only the pages on the official application forms (or identical extensions of these pages if , for example , more room is needed to list equipment or provide manufac- turer ' s specifications) . Alternative proposal forms are neither -2- desired nor will they be considered. The official forms have been designed to facilitate comparison of proposals . Evasive , imprecise , or incomplete responses can only serve to the disadvantage of the applicant . The City of Shakopee reserves the right to reject any and all applications . C. Clarification of Application Documents In the event that any applicant may have any doubt as to any terms , conditions , or provisions of these specifications or the meaning or interpretation thereof , the applicant may request infor- mation or clarification thereon by submitting such request in writing to : City Clerk City Hall 129 East First Avenue Shakopee, Minnesota 55379 Such request for information must be submitted no later t _orty--five (45) days prior to the deadline -for filing application The City Clerk will respond in writing to such request as promptly as pos- sible . Such response shall be sent to only known applicants who have been supplied applications . No other interpretation by any other person, whether oral or in written form, shall be binding upon the City. The applicant , by submitting its application, shall have evi- denced the fact that it agrees that it has no unanswered questions with respect to these specifications , and shall have no basis for withdrawal or modification of its proposalon the basis of misunder- standing. D. Amendment to Application Substantive amendments to proposals will not be considered except to acknowledge involuntary changes such as a change in owndership due to death. Correction of inadvertent errors submitted prior to the • r -3- filing deadline will be considered. Correction of errors submitted after the filing date may be considered at the discretion of the City or its consultant , if the applicant submits with its correction sufficient information to prove that the error is inadvertent. Addi- tional information or data may be requested by the City or its con- sultant if in their judgment this would aid in preparing a fair and accurate analysis . E. Application Selection Procedures The City Council of the City of Shakopee will evaluate all pro- posals that have complied with its requirements with the assistance of the Shakopee Ad Hoc Cable Communications Committee and a cable consultant . The consultant will provide a formal report prior to holding a public hearing for the applicants and the public . All applicants that have met the City' s qualifications in the Request for Proposals (RFP) and have submitted proposals on the required forms will be offered the opportunity to make a formal presentation to the City Council in support of their applications . Notice of time and place will be given to applicants and the public when the City Council is ready to conduct the public hearing for this purpose. Following the hearing the Shakopee Ad Hoc Cable Communications Com- mittee-will forward its recommendations regarding the preferred pro- posal(s) to the City Council which will then complete its evaluation and take final action regarding the grant of the franchise . F. Uniform Data Requirement All proposals are to be based upon the same uniform basic data. supplied by the City. The uniform data appear at the end of these instructions , as Section V. A reasonable attempt has been made by the City to provide as current data as possible. -4- All pro forma statements are to be derived from this same basic data. All growth projection, including number of subscribers and number of dwelling units , shall be justified in detail as to the methodology used and the specific statistics affected. G. Cable Communications Ordinance The City Council , assisted by the Ad Hoc Cable Communications Committee , has made preliminary decisions regarding its regulatory policies , and has incorporated them into a draft franchise ordinance . This ordinance contains provisions for awarding a 15-year nonexclusive franchise to construct , operate and maintain a cable communications system to serve the City of Shakopee and sets forth conditions ac- companying the grant of the franchise . The City has approved the draft ordinance for distribution with this RFP. The final ordinance will be developed by incorporating the salient features of the selected app- licant ' s proposal into the draft ordinance . The City reserves the right to exercise legislative discretion to alter or amend the draft ordinance prior to final adoption. The final ordinance will incor- porate the successful applicant ' s proposal by reference . The fran- chisee will be obligated to comply with the ordinance and proposal . H. Citizens ' Advisory Committee The City of Shakopeeestablish an advisory committee for the purpose of assisting the City Council with the task of administering the franchise , including but not limited to : monitoring the fran- chisee ' s performance , hearing and acting upon subscriber complaints , researching requests for rate adjustments and other issues , provid- ing information on cable to the public , preparing reports for the Council regarding cable matters , and promoting the development of the access opportunities on the system. The Committee ' s structure will be determined by the City after the franchise award . -5- II . DESIRED SERVICES AND BIDDING REQUIREMENTS The City is establishing few requirements as it desires that all applicants have maximum freedom to develop their own innovative proposals . The City of Shakopee fully expects to enter a firm contract with the successfulapplicant for the timely delivery of all elements in the applicant ' s proposal . All items being offered by applicants are con- sidered to be freely and voluntarily offered and will be included in the franchise and become subject to the enforcement provisions stated therein . The successful applicant must agree to support any waiver required by the Federal Communications Commission (FCC) for any vol- untary offer of services or technical standards that may exceed FCC requirements . A. Franchise Fee The City has established a franchise fee of five (5) percent on all grossannual receipts . In order to eliminate this fee from becom- ing a bid item, the City will not consider any fee that is different than five (5) percent , c _ : —o- -- or lumpsum cash contributions . B. Initial Service Area and Line Extension Policy The City desires to have cable available to all areas within the entire municipal boundaries . It has established an initial service area (area within which all residential subscribers will receive ser- vice at the same rates) which is designated on the map included with this document as Section III . Residents of all other areas which reach an average density of 40 homes per street mile shall be provided service under the same conditions and rates as those subscribers in the initial service area . -6- The applicant shall provide a line extension policy to serve that area outside the initial service area, including minimum density requirements and cost sharing arrangements for extension of service to dwelling units and commercial buildings not located in the initial service area. Cost of providing line extension service to certain line extension areas identified by number on map in Section III is to be identified by applicant . Preference will be given to a line exten- sion policy which recovers the actual cost of time and materials from persons served by the extension. C. System Design and Construction The City seeks a modern , efficient , and cost-effective system which will facilitate quality maintenance practices , deliver a var- iety of marketable services , and provide the flexibility needed to adjust to new developments . The City is interested in receiving pro- posals for the initial deliver of a 400 MHz system with 50 activated and 30 programmed channels to subscribers and two-way capability, with emphasis on serving residences . Design should include a headend or hub located within the Shakopee municipal boundaries . Applicants are also encouraged to propose technical standards which exceed current FCC and Minnesota Cable Communications Board requirements . The City solicits a design that includes provisions for inter- connecting with other metropolitan area cable systems and seeks de- tailed information on plans for interconnection and how costs of in- terconnection shall be determined or apportioned. The proposed system is to be constructed and service provided to the initial service area within two years from the date of Certifica- tion by the Minnesota Cable Communications Board (MCCB) . Applicants are to submit a plan for construction and service , plotting construc- tion against a time schedule in 6 month intervals , defining when res- -7- idences in the initial service territory and line extension areas will receive service . D. Renegotiation The franchise document shall provide for renegotiation at inter- vals in time of no more than five (5) years . E. Underground Cable Agreement to lay all cable underground where all other utility cables are now underground, and, in areas where all other utility cables are not now underground, to lay cable underground at such times as all other cables are laid underground. F. Liquidated Damages and Performance Bond Should the franchisee fail to complete its proposed construction within any of the applicable times fixed in its proposal , due allowance being made for contingencies provided for in the franchise document , penalties will be assigned to the franchisee . The franchisee shall be required to pay to the City of Shakopee $100 for each and every day of such delay beyond the time stated for completion as liquidated damages that the City of Shakopee and the subscribers will suffer by the delay and/or will be subject to a decrease of four (4) days in the franchise term per day for each day or part thereof , such failure occurs or con- tinues . In addition , in the event of delay, franchisee will , unless franchisee can show good cause for the delay, be subject to loss of the franchise . The franchisee shall also provide the City of Shakopee with a per- formance bond in a sum of 125% of the construction cost . G. Services Applicants shall provide : 1 . Five access channels including: a. one public access channel b. one local government access channel c . one educational access channel d. one leased access channel e . one regional interconnect channel f . if tiers are proposed, all access channels must be included in all tiers . -8- 2 . Two-way capability 3 . All broadcast signals required by the FCC. 4 . Access facilities including: a. video production equipment to accomodate studio and lo- cation recording; a portable camera-videotape recorder, and access to post-production videotape editing; b. staff assistance for training users in production tech- niques and in actual productions ; 5 . 400 MHz system with 50 activated and 30 programmed channels . 6 . Audio and video emergency alert override system. 7 . Locking device available for rental or purchase which will allow a subscriber to lock out the movie package channel on the cable system. 8. Repair services provided in fast and efficient manner to the City and the subscribers (Indicate proposed method of service, detailed requirements are cited in preliminary ordinance, Section 8. 06) 9 . Automated Community announcements displayed in graphics and programmed by the operator. A keyboard and related equip- ment for the purpose of programming and entering information from the office of the Shakopee Community Services will be provided. In addition, the applicant will provide the ap- propriate connection from the Community Services office to transmit the information to the headend so that it can be displayed to all subscribers . Beyond these minimum requirements , applicants are free to develop service packages based on their own understanding of community needs and desires . Applicants are urged to use as reference the "Shakopee Needs Assessment" conducted by the Shakopee Ad Hoc Cable Communica- tions Committee . Applicants might consider various services such as (but not limited to) : * tiered service -if tiers are provided, all access channels must be included in all tiers . -universal service tier providing 5 access channels for the actual cost of installation. * automated and nonautomated local origination * program options including: -national and international news service -financial and stock market information -sports channels -weather service -9- -children ' s programming -movie channels • pay cable (self addressed) ;; two-way capab; '_ity upon system activation * access support including -access promotion plans equipment maintenance budgets and policies -use of existing production facilities within the City and metropolitan area -plans to accomodate the growth of access -access budgets -financialsupport for any non-profit corporation that may develop for the promotion of access channel use * interactive services including : -computer games -home security packages * FM service H. Institutional Capacity The City is interested in having a system design that accomodates transmissions among institutions serving various locations within the franchise area. Applicants are encouraged to ascertain the cable needs for instituions whose services would be valuable to a community com- munications network. The City requires the following: 1 . Return lines from Shakopee High School and the Shakopee Branch of the Scott County Library to the head end. r.. 2 . Free drops to be provided at the following locations : Senior High School, Junior High School , Sweeney Elementary School , Pearson Ele- mentary School , Central Elementary School , SACS (Shakopee Area Catholic Schools) Elementary School , SACS Middle School , and Shak- opee Women ' s Correctional Institution . All services offered in excess of the minimum City requirements must be guaranteed and within the financial capability of the system as demonstrated in the financial proforma statements . All proposals shall be within the guidelines of acceptability as defined by the FCC ' s description of extra service packages . -10- I . Priorities and Criteria for Evaluating Applicant The City of Shakopee will consider the following factors as especially important when awarding the franchise to an applicant . 1 . Reasonable cost to subscribers for all services offered. 2 . Early completion date of the total project . 3 . Number of programmed channels energized immediately. 4. Commitment to provide , and proof of ability to provide , fast and efficient repair service to the City of Shakopee and to its sub- scribers . S . Capability for local programming at the date the system is com- pleted and in operation in the service territory. 6 . Commitment to provide , and plans for providing equipment and staff to assist local programming on the access channel . 7 . Early availability of access facilities and staff provided and supported by franchisee . 8 . Availability of Emergency Alert System. 9 . Capacity for more than 400 MHz system. 10. Strong commitment to interconnect Shakopee cable facilities with other systems located in the Shakopee or metropolitan area . J. Legal. Qualifications Evidence must be presented to assure the City that the applicant complies with the applicable rules , regulations and statutes of the FCC, the State of Minnesota and the Minnesota Cable Communications Board regarding ownership and control of regulated franchises and bus- inesses . The selected applicant will be expected to strictly adhere to all federal , state and local requirements governing discrimination, equal employment and affirmation action . The City requires that parent companies guarantee commitments of their local subsidiary corporations . K. Character Qualifications Evidence shall be presented by applicant as to whether or not the applicant or any principal has ever been convicted in a criminal pro- ceeding where felonies or misdemeanors were charged. -11- Evidence shall be presented as to whether the applicant or any principal has ever been a party to a civil proceeding in which it was held there -was unfair or anticompetitive business practices , antitrust violations of securities laws and false/misleading adver- tising. Evidence shall also be presented as to whether applicant or any principal has either initiated civil litigation against a franchising authority or has been the subject or litigation by a franchising authority. Evidence shall be presented as to whether the applicant has ever had a business license (including FCC licenses) revoked. L. Financial Plan Pro Forma An important feature of the application is an adequate demon- stration of the financial capability to perform in accordance with the ordinance , this Request for Proposals (RFP) and the applicant ' s proposal . Failure to provide the detailed pro forma requested may be interpreted by the City as evidence that the applicant is not properly qualified to receive a grant of the franchise . The pro forma data submitted should include plans and terms for debt and equity participation, terms of local ownership participation (if any) , financial goals as well as financial projections and assump- tions . Complete detail is required pertaining to equity partici- pation of local ownership and the equity of lenders , now and envisioned for the future . All understandings for equity partici- pation are to be provided in detail , whether written or oral ; and if equity is provided by the company in exchange for services , the extent and nature of the services are to be detailed . Tiered-service structures , if offered, must be factored into the revenue projections . -12- For purposes of the financial pro forma, Year 1 begins on the date the franchise is awarded . Further, an average annual inflation rate of 9 percent shall be used by all applicants in preparing finan- cial projection. Implementation Applicant should present evidence of financial resources that assures the company ' s ability to complete the entire proposed initial service area within the construction period specified in the applica- tion. Rate Schedule The rates initially proposed by the applicant must be substan- tiated in the pro forma statements by use of realistic levels of penetration. The City will regulate rates for basic services , and such other services as may become subject to local regulation. Ap- plicants may indicate projected increases in the pro forma projections . In order to assure the City that the rates proposed are realistically calculated to meet the applicant ' s financial goals , initial rates proposed by the applicant must be guaranteed for a period of two years from date of completion of construction of the initial service area. M. Demonstrated Experience in Operating a CATV System Information will be solicited concerning the applicant ' s cable television franchises in other cities . This information will be used by the City to inquire into the applicant ' s experience in other communities in which a franchise is held. IV. EVALUATION CRITERIA AND WEIGHTS These evaluation criteria and weights will be utilized in the formal evaluation of franchise applications . The fran- chisor reserves the right, in addition to this comparative evaluation, to impose mimimun requirements in areas such as ownership and legal qualifications , financial capability, etc. CATEGORY WEIGHT Experience/Background 10 Financial Resources and Commitments (financial goal , availability of funds) 12 . 5% Proforma Projections (projected revenues , capital costs and operating expenses) 5% Construction Plans (initial service area, line ex- tension policy, construction time table) 17 . 5% System Design (design concept, channel capacity, interactive capability, technical standards , service security, head- end and importation facilities , interconnection, institutional ser- viceL design, subscriber equipment ancillary services) 10% Programming and Services (broadcast station carriage, origi- nation programming, automated pro- gramming, local origination, access channels , access support, pay-cable services , interactive services , tiered structure, FM service , ser- vice to institutions) 15% Rates and Charges 17 . 5% System Reliability, Maintenance and Repair, Employment Practices 5% Response to Local Needs 7 . 5% TOTAL 100.0% V. UNIFORM DATA FOR APPLICANTS Current Statistics - Shakopee Population** 10,160 Households 3 ,441 Households in Multiple Dwelling Units 736 Street Miles 87 . 5 Initial Service Area: Estimated Aerial Plant Miles Estimated Underground Plant Miles Line Extension Area : Estimated Aerial Plant Miles Estimated Underground Plant Miles Growth Projections : The City of Shakopee is expected to grow to 4,700 households by 1990. NOTES : *Every attempt has been made to ensure the accuracy of this data; however, actual figures may vary. The ap- plicant selected as franchisee will be required to construct and operate the system according to actual circumstances . **1981 Metropolitan Council Estimate I t3- APPENDIX Official Application Forms 4 Prepared by CTIC ASSOCIATES 2100 M Street , N.W. 6th Floor Washington, D.C. 20037 202/872-8888 Draft #1 : t CITY OF SHAKOPEE, MINNESOTA OFFICIAL APPLICATION FORMS FOR PROVIDING CABLE COMMUNICATIONS SERVICES DUE AT: Office of City Clerk City Hall 129 East First Avenue Shakopee , Minnesota 55379 Telephone: (612) 445-3650 J CLOSING TIME AND DATE: 2 : 00 p.m. , November 13 , 1981 July 13 , 1981 Prepared by * CTIC ASSOCIATES 2100 M Street, N.W. Washington, D.C. 20037 a LIST OF CONTENTS No. of Pages OVERVIEW AND SUMMARY OF PROPOSAL 2 IDENTIFICATION OF APPLICANT 1 APPLICANT' S AFFIDAVIT 1 FORM A: Ownership and Control Information 4 FORM B: Ownership Qualifications .2 FORM C: Character Qualifications °=2 FORM D : Experience-Current Cable Holdings 2 FORM E: Experience-Former Franchises or Ownership Interests 1 FORM F: Financial Resources, Existing Capital Commit- ments, and Potential Building Commitments 7 FORM G: Financial Pro Forma 20 FORM H: Service Areas, Construction Schedules , and Construction Practices 4 FORM I : Channel Capacity and System Design 32 - x FORM J: Proposed Signal Carriage and Channel Allocations 13 FORM K: Local Programming 4 FORM L: Proposed Rates 3 FORM M: Employment Practices 1 FORM N: Concluding Summary 1 z INTRODUCTORY OVERVIEW AND SUMMARY OF PROPOSAL Each applicant should present a clear and concise narrative description of the cable television system and services it proposes to provide. Please limit responses to a maximum of approximately 25 pages. Please cover the following subject areas: • Overview of Proposal • Ownership and Management of System • Financial Commitments • System Design and Construction (including bi-directional capability) • Signal Carriage and Channel Allocations • Local Origination and Access • • Rates and Rate Guarantees • Institutional Services • Other The purpose of this section is simply to provide the reader with an understandale overview of the proposal, not to discuss details which will be covered elsewhere in the application forms. The applicant must clearly differentiate between those elements of the proposal which it is firmly committed to providing (which will be contrac- tually binding) and those which may be provided. iv SUMMARY OF CHANNEL ALLOCATIONS Briefly describe below the designated programming or services proposed for each of the cable channels (i.e. , Channel 2--WXYZ, Washington, D.C. ; Channel 3-- Public Access/Bulletin Board) . Please indicate clearly the divisions between var— ious "tiers" of cable service, if appropriate, using a format such as the sample below. Cable Chan-1 Designated Programming/Service nel Number 1 } ti.. • r V APPLICATION FOR CABLE COMMUNICATIONS SYSTEM FRANCHISE FOR THE CITY OF SHAKOPEE, MINNESOTA o- IDENTIFICATION OF APPLICANT Name of Applicant Address of Applicant (Street) (City, State, Zip Code) Telephone (Area Code and Number) Date Plea'$e give name and telephone number of principal to whom in- quiries should be made: Name Telephone (Area Code and Number) Authorized Signature (Name and Title) Dater- vi 4 APPLICATION FOR CABLE COMMUNICATIONS FRANCHISE } Applicant' s Affidavit This application is submitted in response to the Request for Proposals of the City of Shakopee, Minnesota, by the under- signed who has been duly authorized to make the representations herein on behalf of the applicant. Applicant recognizes that all representations are binding on it and that failure to adhere to any such representations may, at the franchising authority' s option, result in revocation of any franchise that may be granted, in consequence of this application. Consent is hereby given to the franchising authority to make inquiry into the legal , character, technical , financial and other qualifications of applicant by contacting any persons or organizations named herein as references, or by any other appropriate means . Applicant intends to comply with the rules of the Minnesota Cable Communications Board (MCCB) and the franchising authority ' s ordinance. If any portion of this application is irreconcilable and does not comply with the referenced standards, the minimum acceptable standards or requirements set forth in the applicable law, rule, statute, charter, ordinance or RFP shall supercede the yortion of the application with which it conflicts and shall be binding on the applicant. Firm Name Affiant' s Signature Official Position Date, Attest FORM A: OWNERSHIP AND CONTROL INFORMATION Form A Page 1 of 4 OWNERSHIP AND CONTROL INFORMATION (Reproduce additional forms if needed.) } To be colleted by all principals , officers and directors of applicant, and oy beneficial owners of 1 (one) percent or more of the stock or other ownership interest in applicant. Beneficial owners include, but are not limited to, individuals , corporations , partnerships , joint ventures and unincorporated associations - Name (if individual) . (if organization) Address (Number) (Street) (City) (State) (Zip) Nature of Interest: [ ] Partner [ ] Stockholder/Owner [ ] Officer ( ) Corporate Director Profession or Occupation Name of Employer • Address of Employer Number of shares of each class of stock or ownership interest (including stock options , stock subscriptions, and partnership options): Percentage of ownership of partnership, voting stock or z equity interest: Form A Page 2 of 4 OWNERSHIP AND CONTROL INFORMATION (continued) To be completed by each organization or corporation which filled out Page 1 of Form A (not individuals) . List all principals, officers, .corporate directors, and beneficial own— ers of 3 poi-cent or more of your own stock or ownership interest. If any of the names below are names of organizations or corporations, complete a new page 2 of Form A for each entity until all ownership interest (individuals) are identified• Name of Organization Address (Number) (Street) (City) (State) (Zip) • Ownership • Name Address Capacity (Percent) Form A Page 3 of 4 4 STOCK INFORMATION Please answer the following concerning the corporation. Is theKapplicant a publicly held corporation as defined by the rules and • regulations of the Securities and Exchange Commission? [ ] Yes ( ] No 2. Stock of corporation: Class of 1 Par 1 Vote Per INC. SharesINo. Shares1No. Shares! Total No. Stock 1 Value 1 Share 'Authorized ' Issued jSubscrib edlStockholders • 3. Does applicant have any other obligations or securities authorized or out- standing which bear voting rights either absolutely or upon any contingency? [ ] Yes [ ] No If "yes," submit a statement of (a) the nature of such securities, (b) the face or par value, (c) the number of units authorized, (d) the number of units issued and outstanding , (e) the number of units, if any, proposed to be is- sued, and (f) the conditions of contingency upon which securities may be voted. 4. Is applicant corporation directly or indirectly controlled by another cor- poration or legal entity? [ ] Yes [ ] No If "yes," please explain. i Form A Page 4 of 4 OWNERSHIP DISCLOSURE '-Applicants, including all shareholders and parties with any financial interest in the applicant, must fully disclose all agreements and understandings with any person, firm, group, association or corporation with respect to the franchise and the proposed system. This includes agreements between local investors, attorneys , lobby groups, consultants , etc. , and the applicant or its principals, affiliates or parent company. Failure to reveal such agreements vill be considered withholding of pertinent information and will be considered cause to with- hold or revoke award of the franchise. Please append copies of any written agreements made regard- `' ing the ownership or control of the proposed system. Use the space provided to outline any oral agreements or understandings regarding the ownership or control of the proposed system. LOCAL RESIDENTS ' INVOLVEMENT IN SYSTEM MANAGEMENT AND OPERATIONS Describe any opportunities for local residents of Shakopee to be involved in the operation, management and decision-making process with respect to the proposed system. Address board of director structures , staff residency requirements , hiring prac- ticks , a discussion of staff autonomy in making decisions, etc. , in your response. Include an organization chart, if appropriate . a 4 } t FORM B: OWNERSHLP QUALIFICATIONS Form B Page 1 of 2 4 OWNERSHIP QUALIFICATIONS 1. Does the applicant, or any person or business entity having any interestl in applicant, directly or indirectly own, operate, control, or have an inter— est in any of the following:2 a. . A national broadcast television network (such as ABC, CBS, or NBC); or [ ] yes [ ] no b. A television broadcast station whose predicted Grade B contour, computed in accordance with Sec— tion 73 .684 of the FCC's rules, overlaps in whole or in part the service area of such system, or an applicant for a license to operate such a station; or [ ] yes [ ] no c. A television translator station licensed to the community of such system; or [ ] yes [ ] no d. A telephone company whose service area includes the community. [ ] yes [ ] no e. A newspaper having local circulation within the community. [ ] yes [' ] no f.' A radio or television station broadcasting from the Twin Cities metropolitan area. [ ] yes [ ] no 2. If "yes" to any of the above, indicate below, with full identifying particulars, the nature and extent of such ownership operation, control or interest. Name of Applicant, Person or Entity: Nature of Interest: Company in which Interest Held: Name of Applicant, Person or Entity: (continued) 1. For purposes of this form, "interest" includes, in the case of corpor— ations,, officers, directors, and shareholders owning 1 percent or more of the company's outstanding voting stock. 2. An affirmative response to Questions 1(a) through 1(d) may constitute disqualification of an applicant if Federal Communications Commission (FCC) and MCCB cross—ownership rules prohibit such an applicant from investing in cable systems (see 47 CFR sE 63.45 and E 76.501 and 4 MCAR ES 4.100). Form B Page 2 of 2 OWNERSHIP QUALIFICATIONS (continued) Nature of Interest: t Company in which Interest Held: 3. Is the applicant a U. S. citizen? [ ] yes [ ] no 4. Is the applicant a U. S. corporation? [ ] yes [ ] no If "no," please describe in detail. 5. If "no," above, state any ownership retained by persons or entities which are not U.S. citizens or corporations . • FORM C: CHARACTER QUALIFICATIONS a • • Form C Page 1 of 2 A. CHARACTER QUALIFICATIONS 1. Has the applicant (including parent corporation if applicable) or any principal) ever been convicted in a criminal proceeding (felonies or mis- demeanors) 3'n which any of the following offenses were charged? a. Fraud [ ] yes [ ] no b. Embezzlement [ ] yes [ ] no c. Tax evasion [ ] yes [ ] no d. Bribery [ ] yes [ ) no e. Extortion [ ] yes [ ] no f. Jury tampering [ ] yes [ ] no g. Obstruction of justice (or other misconduct affecting public or judicial officers' performance of their official duties) [ ) yes [ ] no h. False/misleading advertising [ ] yes ( ] no i. Perjury [ ] yes [ ] no j . Anti-trust violations (state and federal) [ ] yes [ ] no k. Violations of FCC regulations ( ] yes [ ) no 1. Conspiracy to commit any of the foregoing offenses [ I yes [ ] no 2. If "yes," attach separate statement providing specifics such as date, court, sentence or fine, etc. 1. For purposes of this form, "principal" means any officer or director of applicant, and any person, firm, corporation, partnership, joint venture, or other entity, who or which owns or controls 3 percent or more of the voting stock (or any equivalent voting interest of a partnership or joint venture) of an applicant. Form C Page 2 of 2 CHARACTER QUALIFICATIONS (continued) 3. Has the applicant or any principal ever been a party to a civil proceed— ing in which it was held liable for any of the following or is now a party to the proceeding? a. Utfair or anticompetitive business practices [ ] yes [ ] no . b. Violations of securities laws (state and federal) [ ] yes [ ] no c. False/misleading advertising [ ] yes ( ] no d. Violations of FCC regulations [ ] yes ( ) no 4. If "yes," attach statement providing specifics- • • 5. Has applicant or any principal ever had a business license (defined to include FCC licenses, alcoholic beverage and restaurant licenses, etc.) revoked, sus— pended or the renewal thereof denied or is a party to a proceeding that may result in same? ( ) yes [ ] no 6. If "yes," attach statement providing specifics.. 7. Has applicant or any principal ever, as a result of an adjudicated proceeding, been found in violation--other than routine service complaints--of any franchise agree— ment, conpract, or regulation governing their cable com— munications systems owned or operated by them? (- ] yes ( 3 no 8. If "yes," attach statement providing specifics. 9. Has applicant or any principal ever initiated liti— gation against a franchising authority or had a fran— chising authority initiate litigation against it? [ ) yes ( ) no 10. If "yes," attach statement providing specifics. w ` FORM D: EXPERIENCE--CURRENT CABLE HOLDINGS r •i Form D Page 1 of 1 ' CABLE HOLDINGS OWNED BY APPLICANT AND PRESENT SUBSCRIBER RATES Please list all holdings (franchises and systems) in which applicant or any principal* owns 3 percent or more of equity interest. (If additional pages are needed, please reproduce this form.) Locatioi of System Date of Franchise Award or Acquisition Plant Miles of System Date First Subscribers `-- Served Number of Subscribers Date Cojistruction Completed Percentage of System Ownership Held Holder of Controlling Owner4hip Interest Current Subscriber Rate Date Rate Approved Name and Address of Local Government Officials Responsible for Cable Operations *For purposes of this form, "principal" means any officer or director of applicant, and any person, firm, corporation, subsidiary, joint venture or other entity, who or which owns or controls 3 percent or more of the vot— ing stock (or any equivalent voting interest of a partnership or joint ven— ture) of an applicant. • Form D Page 2 of 2 EXPERIENCE -- SYSTEM UPGRADING 1 . Provide information about major improvements made to systems owned by applicant. Include the nature of the system im- prdUement (provision of additional channels or channel ca- pacity, provision of subscriber terminals, rebuild of or addition to distribution system, addition of interactive capacity and/or services, addition of major production fa- cilities , etc . ) , the year of the franchise or franchise re- newal term that improvements were completed, and terms of the system improvement (rate increases, franchise renewal or re- negotiation, etc . ) . Reference Form F, page 6 , if appropriate. FORM E: FORMER FRANCHISES OR OWNERSHIP INTERESTS i Forte E - Page 1 of 1 a ' m r • C L G m .r-1 a1 m w w o ,'1 1+ v w O 4 G 0 u a O T .d C 1+ a '.-4 L m O O CO CO +-C 4- 0 CO r1 1+ - Cl. U t) C • O CO C.) w a) E3 T 1+ o +J 4-1 C 0.1 0 0 CO a.-. v CO C0 C C u U .-1 C CO .-mi C O m Z aJ 14 > •0 w "0 CO C u II O C U O G > CO ri U ri T1 b .--1 0 a) u G a 1+ -*-) U m O i a 0 CU O m co 1+ 1+ a m m O m a1 m b • O e1 E 1.a .0 .4-1 1-1 w C U +.1 41 C 0) 0 u G a) a) m w m •4-1 la 4.1 1+ C -r1 O +-1 +- .,� 1+ Cr) a) Cr r ^3 1J W -- a) +J a) U co 0 R. C+I 3 m v- y C 0 1+ :0 .C] a) ca CO a O O a9 T G U La :4 m .G C7 J CO C W -1-4 1-+ 3 w rl `bO —— (0 a) G b O - GG C G 1+ o s•i T y 44 E as a u+-+ mw a) CO a CU O +-+ 'S7 w TI a) O al 1+ CO U m O u 1+ U a) +, C 3 C a) T a1 L ›N..0 CO a1 an d G C O 1.+ u ca A u 0 1•+ ,-1 W d C al 4+ a1 > m r-1 —— m ..0 h0 CV 1-+ R. G L 0 w CO O �-1 1.1 y C) m a1 9 1+ O -4-4 )l d O > C m .-4 61 JJ O a) m 1+ G r_1 - C T R. 0 CO L L -e-1 J ri G to a 3 1 U+ 0 G aa)> 0 IC E 9 1+ C r1 a) m 6 a y er m L al O _ C 0 G.. m CIO C; '-+ -.I T CO O T U CO a 6 In C C. >+ 03 +1 01 r-4 i O 1+ .-1 0 I I w N O 0 a m O m as `-/ T U -.-1 — -ei vd C u .= -C -Y co m .-1 L —I U ICJ CO 0 1+ ,CO -O H w ,a L O 431 al 4/ O C m +-I V CO C 1+ H T a) ". 0 m 61 v Cn m G -r1 U COO O O u -.1 O w a roi O .-1 • 0 1+ iJ > C.. 1+ ++ 1ro CO C. O m a) a 1+ a1 •¢ a) E O .m am 1+ m 1+ a :.+ m a1 Z _ O 1+ 0 I U O U -.r —.— FORM F: FINANCIAL RESOURCES, EXISTING CAPITAL COMMITMENTS, AND POTENTIAL BUILDING COMMITMENTS Form F Page 1 of 7 FINANCIAL RESOURCES Please describe in detail the financing, plan for the construction and operation- of the proposed cable communications system to serve the City of Shakopee. Proof of financial capability shall include the ':fol lowing: 1 . Source of financing: a. Equity-What is the source and amount of equity capital?* b. Primary Debt-What is the primary source and amount of debt? c. Secondary Debt-What is the secondary source and amount of • debt? ¢d. Name and title of officer in bank or lending institution who has authorized the financing for this project: 2 . Terms of financing : a. Amount-Primary $ Period Amount-Secondary $ Period b. Under what conditions is the financing to be made available? c. What interest rates? d. What collateral is involved? e. Who are guarantors? f. Are there related agreements made in connection with financing of this project? • *If any portion of equity contribution is borrowed, describe collateral and terms of the loan. Form:F Page 2 of 7 FINANCIAL RESOURCES (continued) g. Are there any limitations on the sale of stock by in- dividual holders in this project? Describe. h. Are there any buy-out or buy-back stock provisions? Describe. i. Are there any assignments or intended assignments of stock voting rights? If so, describe. j . If applicant is (or includes) a multiple system operator, will it agree to countersign the franchise agreement if asked by the franchising authority. k. Is applicant organized as an IRS Subchapter S corpora- tion? If yes, what depreciation rate will be used for tax purposes? -S Fora F Page 3 of 7 FINANCIAL RESOURCES (continued) 3 . spocumentation: Supply correspondence that assures applicant ' s financial viability, such as letters of commitment from finan- cial institutions, which will demonstrate the availability of sufficient funds to complete the construction of the proposed cable communications system for Shakopee. If applicant is a multiple system operator, give evidence of the portion of the company ' s line of credit that is presently uncommitted, and will be applied to the construction of the proposed system. If applicant is a division or subsidiary of an MSO, provide `.. the proposed debt instrument describing terms of payment. If capital is to be raised by a parent company, provide an annual report for the parent company. Form F - Page 4 of 7 FINANCIAL RESOURCES (continued) 4. ADDITIONAL DATA REGARDING LOCAL INVESTORS If focal investors are involved, these additional questions must be an— swered. failure to answer this question fully may adversely affect the eval— uation of an applicant's proposal. a. List the amount of equity contribution to be provided by each investor, plus the method by which the contribution is paid (e.g. , cash, cash plus credit, services, etc.) . Services con— tributed in lieu of dollar investment are to be described and made quantifiable. b. State how each investor intends to fund its contribution. If the money is to be borrowed, state what will be the collateral. c. Include financial commitment data for each investor. d. If the percentage of ownership is not comparable to the equity contributions, state how ownership will be allocated among the investors. e. Submit data showing how profits and losses will be shared among franchise investors. f. How will investment tax credits be shared among the investors? g. How will depreciation deductions be shared among the investors? ro W F Page 5 of 7 - al • o ) 0 COm L �C -4 yy .m-4a 'o ri 1.1 ^ E - COu o C E a C U 0 w U CO L L H t4 ) "C1 • _ y L .....I 'Y4 C -•I it co co a' 3 co 7 , .- = CO .11 O ...IM O 4.) L a) I ---.4----..---_�.�_ : - i C o0 C a) O O 1 U L 1 U A. G n 1 L I o0 Q` r•1 --1 .d CO .-4 CO..0 L a) CO r-i L 0 LTi do 0 0 W 0 .. H C ; , m y C O L L -.1 -� u m a) %-+ -'i O • ^1 �T U 3 y y 4 C CO Ti Z HO y 1 H Tr CO U I U 47 L -ri C ( , C O U CO LA Z L 'F" , 1 L U W W w L1 C z "0 CO L H CO y C w v H C 41 O C MI O L n' (.) L CD p ++ E Q` -0 'O L U et E ^' C r-i O N • O C O w U --i E CJ Z C L L O C ,-+ ca 0 C w o GC w CO 1-.1 +1 .- O CO O. CO ... 'V U CC "0 G -.a C L a CN Cl C •-i y ' CO L C .s......., < L C) O J G C. C O ...1Ti O CO 0 C. 0 a -r N , E L y H L O O U < O L U O i .a.., ta) m L C) J ) L C) L G) .J C) L W 1J C to m to co co La :J.1 L :J y .-I m r-4 CO 0 co +-i G ,-4m r1 CD -+ CD ....1m C C) C ,,.q 0 --+ C --( O ^-i 0 •-4 O -i 0 C U c.^, r-I .i. C.) a. U 1 U Z U Z U = 0 to O •0 (1) U C) -. * n... r-1 m .-a y T Tr-p —1 :_r-4 'O L E 3) E CL Q . CIH 1.) O CO .17 C c) L L - L 7 m 0- .-1 ^ •.I E L L 1...1 c) E E m CO 4 C O CO C y O U >, y 0 o cu G w W a I O 0 co L L./ L E •• •• C 11 C) CO CO C ;s~ .-. •1 -.c-) cu) ..•, 0 C r--4L U - O C >? C •- G C: 0 4-4 J L O.% L 1.1 r. >, L O m �d > ! 0 T,r. -rw -r -� -.a .CD CO rC) U .1 CO CC C C - C C. E C. cd C U'4 y v E E E E E 3 u o C Uy T+ U O •.I O O O 0 0 _ O ,.,i S U ' U U v v 3 - =r L f - Page 6 of 7 Form : - I I ":1 CO CO rn H 3 • >1 :J . -...1 i C 8 5 o Ln U CrN C m � i O •- I CC C 0 C U L CC a) 1J 7v -4 o a. '. H E C d Z 00 I E C U c• .-7 -. a m L 0 a) 0 I Z co H .a -4 -C ,-.] U U— 1 .1 C u a C „• 1 1 Fa ). ,-1 I w 4. E S"/II m o00 I >, I C O Crs I y,, Q 0 I ,...1I CC 1-4 i I CC E I CC N • Cf) W -: E CC O' — . o co w H t+ O co Cf J N H CO I Z C01 C) v ra I H C U , ... W C i N O I 1 o os.. I Um' C -- m m m m m m L 1.1a) +� a) L a) L d L C) L C) +.J CZ ,-.1 CC m .-a CO ,-a CO --4 m CC CO C) .. +4 0 -4 0 -4-4 O w 0 .-1 0 -.-4 0 l C.) m - I Z 0 .^„ 0 ,7 0 Z U Z0 Z U ) } CO ri CO 'CC ^ .i CO .CC a) r, >, 0 I 0 CC)▪ a r' .....1 ! (• C a r� R,C a1 G L , I co t7 8 O u .-+ a E c_ . ( -,i CC 'O 'C 0 C cd C. a) a) O ..-4>, C) u 1 ....� m C .CC G L 4.4 CIS 0L .-i O 1 .y C 'C vCO H C" -.4 o f . .. C O •i a) a) U` a -• •• •• .. R. ') ,-I C) - . .-. N r) "- Cn •.0 00 E C. CC LL+ ? L C E 6 F. O C) ?, ?, >, T >, O co > U L L u •' +-I 0 V C. .-C .•! -...1 ..-.1 +1 "- .1-4 CO :J U . C.) e...)e...) C C C C C .-i .1 4 U CO CC C G. .i .-1 -i* v E 6 E E E E 3 .G u g O E E O .-1 0 OO 0 0 C 61 O H 4 C..) U 0 0 0 0 CC H . Page 7 of 7 Form F a 1 I i I -0 I i E q u O e c0 U H O u U t+ co a) W JJ 0 O — z H d o m H CO 'd co H o on d W U ,,.a ...A H ..= 13 r4 ,+. P.1 0 L L d w 0 C w W t C] H a H 0 w C • —— Z O cL r+ O +., , 6++ T w 0 H C0 'C E-. 0. m N d G» co U o 0 0 G o U H O X u v w I III U, CO o VN u4-4 a --— W O CO 00 C 0 HYp S+ 0 O H O 0 O 0 ID L 6J U O .-i 0 U CO a L H 0 I`+ 0 H Z c A G H p•.d 0- P 0 4 ,-1 6+ 'C7 H O co m CO 0 (13 m u 0 aJ a iJ 00 u co.a G CO H CO H� 0 Ha 0 CO H-1 CO 0 ....4Z U X U Z U Z U E-e .-1 0 z H U fal a CZ H a a +, t� to 'b m 0 ..4 .-1 a U .= 4-1 U rl c0 0 T3 CO b O 0 H C .G L `.d CO • X0 -0 }J H .. H CO L CO 0 'C •-1 CV r1 Q O CU G UL .0 O 0 H >, O H C.H 0 7+ 1J J.J to u H H H Z H0 w 0U • U 0 0 6 0 0 6as m 0 6 0OJ Pg 0u U U0 O "H 0 1-* C 4. } FORM G: FINANCIAL PRO FORMA • s • • • Form G - Page 1 of 20 2 7 ) 1 b Cl.) a) •-I 1. r-i C 0 C) .0 .-i a) 1J „0 cO iJ - ,-4 CJ C ..O CO )-. 0 3 03 1-4 U T U O U +J m .0 T. I vC1: >-,. a) C 0 -0 CI Orn CD * a C -.-4 CO • CO L d CO 14 °V M r-4 CO a) G a) .J 4 L -rI C C) ,C '4-4 0 U >, E 1 U CO 14 a, co O ( C3 W - 0 i.. C1.+ O a) O 0 d a) -4 W 1. •0 CO .0 i•+ M CO 1.+ c9 C U 4.4 a) U O +4 C) C • -.-4 L m U 1.. J3 CO .0 r' 1+ U E U U • C) m b 1. CO C C) P... ^ a) O v 0 m 0 m w 1. -a CD C 14 w .0 CC ,-C O U U a w a) 0 C) co m m °0 a) L b. H CO U -a 7 • w FZ7 0 i I O C) U d {J > '1-4 .0 H ,..1 id y 4-1 CO H a)v a) - -a .-i 0 O OBD C) .0 C) CO 0 q r'! 1. C +44 U W [z7 1.,-C1 1. CJ O m C a) M U W C a Z > U m w CO CO 0 O d T ( 0 L. U c9 C a) C:] w O... VI a) a) -+ 0 -- t U u aJ 4.4 U CO ,-4 CO U [] r . > r-4 "` 1 1 L L 2 a)v C) 1. 4•-1 C U < CSD JJ .O C) C CO a) 14 C/7 1+ r 0 1.4 co u H a) U W 1r O > y� 3 >-0 m O C) w .. O d C .0 > 0 ca cC N 7 1. m .-r CT 4.4 0 C/9 CJ m 61 z e, m _ CO O L (I) ) r-1 14 1. L 0 L H a.....4. CU a) a) C CO cr) CDU .o 0 ..'J 3 >. C) .r .r 0 -C O C) C) cn w 0 14 1. .0 1. s a) CI CJ C U 0 CO u a > Ra ID Q m • d ^• L C H 0 L 0 ID O CO O d cn ID .--1 m a) G. - C) d m T co +-1 y I 1.4 w CO 0 U m CO �. 0 0 C. L. „,..4 i--+ '-z .-•1 N E • C) Z O U m U (1) C) ,p d 0 C9 .i l.] U 8 't7 C) CO C) E -4 0 C) ,....+ GO L i+ U Co `J L CO 1s C L CO C 1 a) a) a• v .-+ i. >, .J >. r-, 1r CO .. N in .a u-r .n r- CO ON O r-. N C•1 s kr) u.. C) U C++ a) .--4 .-. .-. .--+ ... .... H L .Z F. E .44-. CI t. v-. 0 i1 s. CO L 1, 1. $. 1. 1. 1.4 1.. 14 1.+ 1. 14 1. L. 1+ v CI O u -7.y q CO CO CO CO CO ID C9 CO 49 q CO CI CI Q >. cL) W>' >® >y >• >• >' >+ >. >" >.. >. ;)- >. >. >. C) 0 O y CO CO M. I. Form G Pace 2 of 20 a • ' �0 0 CO 4- 7 U 6) � G. a rl R C yy L 1 `' L+ 1 C l+ d 0 a I O a C VI i U r1 W O U CO 0 u ,a a co i, m +-1 as • H ,--tI l+ w ,..1 w Q {.+ 0 4c C CU G T I I O u Q) C ca coO w al C a u G y+ U .4 > a -'°4 O CO C PGa UTO -, G C a N I I -- j , ° > L HU $ CO I E Z CO y a c0 ca +� . W I 1+ C G H --- i a C C Q I w C U H $4 w CO V] 6.) O C1.1 vI as U u W _.O , I ,',4 N a D 0 H Cm OD 0) R7 14 L -1..4m L _ Q a CO U W Z"° q; 1:1 0 CO d H v--4 I I t.+ > a.a u — a a H m T -,-C1 - a .0 •ec .-i `` s L m 4 al Oo 6' C.. >a^ I I I cn al aa I G 1] a O .-+ .c. = a v L+ u H * 7, Icn o o G I G cn 0 a O a a U L CO > .0 -. 1+ 14.i ,-a .-, a H C1� G v l ! 0 O > az N I- C p. —^ I m a CO H ,K >.I rl .D .-. t3 H -,U.d 1.4a C a 1.- H Co CO 1 0 .d c: ZCO ( a a E I p i s - O > I .. L >, .-. 'O .. .-. N f61 -.Y in ,,D r— co U ® ^' c-‘4 r - 61,+ a C ...4 .-. .r . , H u 0 ti 4C 1113 F COt+ 1+ H U s+ 14 1+ 1+ l+ U L+ 14 1+ a C O) L+ 1+ M COCO O3 CO CC CO CO CO CC CO CO CC CO CO .-1 -. CO CO C) >, a a a C) a a a a a a CO a a a a �� P. r r r r P. P. P. a6 >- >- r r r co U b. Form G Page 3 of 20 REVENUE DOCUMENTATION Using the figures of households given in Table 1 , explain how your subscriber and penetration figures are obtained. In brief narrative, describe the source of the information and basis for pro— jection. Describe the basis for projection of penetration levels. Were there any marljt surveys made? If so, how was it conducted? Please furnish copy of market studies. Page 4 of 20 iormG a m q m p W It i i U C m a O a c0 1 t--1 B of O U C'Z C W H 1 I m m I I m C c] I .� C L. C H —, 0, 6 i......4.1 I $.1W m u C m a o wC H r-7 0. 1J O H a c7 0 Cn a3 1 I W V — CO I C m a 0 CO 1-+ a H ri .0 L , u C H ♦J C jJ m •.4 a .-1 L Q a co Q O a.a 1 N C.) CO C' a C 'L7 W C./--4 a C _ I co I ..1 C. 60 a I C C ,.4 C O m L a I m m c0 G1. C a S+ X +a ,..] a Cs] I 00 C.) I a ." C CD '' IcaAP 1-- a N C'1 T s^1 N. cr) C'r ® ^+ N C.1 -.T tr% .. ld m H a F.+ 1.. }.; L. t. t. t,, 1. w LI 1. L. W l i 1+ O >. c0 CL CZ CO m CO C3 a Q to 9 CO 03 0 v Z CU a a a a a a a a a a a m a a >• >4 >- >- >4 >- >• >4 >- >4 >- >) >+ >+ >+ ! Form G _ Page 5 of 20 • 1 . Present, in brief narrative form, applicant's financial goals . Specifi- cally, include in your discussion financial targets for operating income, pre- tax income, and desired rate of return. What is basis for rate of return? How is rate of return calculated? If the discounted cash flow method is used, what is the investment base upon which the return is calculated? What are the itPmg csonsidered as cash out-flows , in-flows? What residual value is as- sumed for the system at the end of the franchise period? • 2. Please describe how income taxes are computed. Will federal income taxes • be consolidated with a parent company? If not , show treatment of loss carry- forwards and investment tax credits. =o» G Page 6 of 20 aa co ..) c c co i H a I` .0 v b — C >.s +J CO q G O G. N CO i G --- 7 P.+ CJ m E CD w O >C c U q G H a i H 1 at I CO CU CO d q G J~ G E G H CO Qto I CO ! `+-4 = O 1 00v Z y 1+ G G ,.0 tz. C. L a o o m wa. 1 , e W CO i w sn c0 G 01 G L W 1-+ 0 Q -1.-1 C. 7 U u .44 a, _4 4. 00 o -0 00 VD 0 V v a q U o +.0 1. +-. u] O— O H 1.3i CO ..0 7 41 0 i' CO ' .O CO v -0 C:4 1 Q1 G 7 u--- (a. 0 0 0 CO w G c q COc G CO a C3 o� U ——— 0 L. 7 L n 7 _, O -4 to ••,-4 -0 :7 G 1,t . Cr 7 q 142 I++ d — >4 00 COC .. Ti U [s] C w C E.. • CO CO 0 ..1 q Z W 0 61 G 00 '_ .-r N r - Cl1n CO CT o .r c 4 t''1 t1'1 .-a .•.1 ..+ — -r _4 .-1 q CI 1s 1.+ 1+ L+ %A L L L I- I- 3. L 1. L. w L q c C q c c c c C C c c C c Q 0 >- E-4 . >, y, y. >-- >- >- >. >- >- >- >+ >- >- >" >. d Form G Page 7 of 20 ANNUAL LOAN INFORMATION Year Average Loan Balance for Year I Average Interest Rates for Year Year 1 4 Year 2 if- Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 '`' Total NOTE: Year 1 begins on the date that the MCCB confirms the franchise. torn G Pace 8 of 20 1 ^ v r-i I y a) O Cl m 7 CU O C +.1 CO /1 C) L CO ' E C a 0 1 0 __ ....... L CO I •7 co i-1 r-I 60 ..... 4) 7 r{ a L PC CO .d I C) I./ it x C) CO L 7 S. C a) a O J-1 0 V m -X 60 CO C) CI. .a 0 .. ` C m I a p 7 .-i .l P. C. CO 1•. — o .-4 O (n. L O 3 • CA ..... L a) o C L a) .,..0 r+ Z I .o ..... — ca ,I CI) L W E Cl. C) 60 a C • CO H 0 S-1 Ul C) Z C 6 . 41 I W O — I 3 ?C L 1 "d J C W .0 CO 7 O 0 a .-e . O N a�.l "CC Fr L r Ca r.44 N r+ CO C N C:1.. — 1J C 6 a -4m U cfl c L o v ,i a. H O , 6o d c _. a 1 .0 L _ C 0 C = CL)) H 'J •" CJd • Z L' u C v c) .CC CO CO •.ei CC CO VI CA a. a) U 'CC `C) N C C CA R1 CO -4 fl CC 't7 E a) ui ( 6) L C) .. U C) Ci .c m a U m C CEJ G. @ 3C w O E G) -r CJ ....1 7 C: U o U , C CO {- . CO 0 L) CO L •• Z C• •a 3 C H a) CJ CO H E Z J.1 C I Cl. ,-. N N1 .7 u1 C: .-+ N C'1 7 C!1 sO r•-• co �' O— .-. .-e — ..r r.4W CL 1+ L. I. f. $. $. H L }. ). L+C.) I. I. L. C C C C C CC C C C C C C C) C C) C) CJ 4) C) 4) C) ›. d CJ d 41 u CJ u P. , y, P. r P. r >, ?.• >-. r r r r r r Form G - Page 9 of 20 .-) a L 0 H 1+ s 0 c.) L * Iw O -5 L T N C w ,-4 ro O O .--1 C 8 ^r C) CO C. L 1J ,C r! -r-1 1. 7 C. O Cr0 C > W C..) 0 I O 133 L : .d .1 i7 C q C7 L FJ -,-IU C7 Cl., ...4 •'-'4 T'a CL C9 G• C C• c C. W I a 1. O O „C O C GO 1.+O .a G 7 C) +� 0 . W -'CIO CU co I GO N ,.{ G. C ,--i • .0 • +) r-I C) u L C •.4 O 1J 1. 1+ -a C C... d _ a u w CO Ya COw U .-a C) O C• Ga a .0U C CO -4-4 •1•4CC ..0 C O C) • .i 14 1�+ C W •p - CO C.) 3 C C C L J 0 7 C I-+ C) C u C L O Cl -O O u O C2 C I 11 U O 7 1. N E I Cr G W VI ro -r•4 O ra C) I --- CO C CD I w +d C) —a C CO la C J 0 7 O `-� : U .0 Q) Cr6 -C a.1 v Wa -4 L C C I -aC O •ra o -- u C O L —• -.a C) O O y ...a - O 71 rip E ca a .r CO O X 0 O W C C CL' .4-1 O C Pi .= .7• .+•- > L .-i C3. L H .,..1 _ C) C) C CDL1 rd O Z w -.a C:.71W 0 L CO O w +a U U L C W 7 O *4 O GO tJ ro C) G < VI p L I '0 1. E„• ____ C o c.-. H c. 'L7 co O Q) ~ < C w n -CIU cD .q CO -.< O 7 1. .-4 ?• Q v C) v H ca CO C .-. CV c•1 S Mi sD c0 T O .r cV y J r .d C) H I-. .-r .r ...r C7 Q C. it is /. 1+ .• C.) C 1. 0.i 14 1+ 1+ 1+ 1+ 1+ 1. 1. U 1+ 1. 1r 1d Cil t-, C) C C7 C) C C) (C C C7 C C C CI C C Q E". )".}. O O a) a) a) a) C) C) C) C) C) C) a) a) O H z >. >. >. >. r >- >- >-• >- >4 >- >• >- >-. a-° 0 < . , Form G - Page 10 of 20 4 ANTICIPATED CAPITAL EXPENDITURES (Cost Breakdown) 1. Furnish an itemized list of quantity, description and cost for each type of equipment in the following categories: a. antenna and tower; b. microwave equipment; c. earth station equipment; and d. headend equipment. Form G - Page 11 of 20 CONSTRUCTION COSTS Item Aerial 1 Underground Distribution Cost Per Milc Make Ready $ $ Engineering $ $ Labor $ $ Hardware and Strand $ $ Cable $ $ Electronics $ Other $ $ Total Cost Per Mile $ $ Cost Per Drop Drop Material $ .$ Labor $ $ Converter * $ $ 4" Total Cost Per Drop $ * Specify the model number and unit price for each tier of service. NOTE: All applicants must use the estimated underground plant mileage figure as shown in Table 1 . Form G Page 12 of 20 I H -. 1 u 10 a) m o .0 > L ' d O G G a co H a) I i C C3. Ei a) e G O I I b m r•4 00 .-1 C ' cC i I Lr 0 CO > G a) o +a U m a O 1. c0 I ar-, .e cts a) ,-1 C O m u o 3 .-1 m -•+ u C 4+ a) U 1-.4I C CO wL W El 0) 00 v .-I C C O C L z o G m C GI 1-4 o --— {f H .r•1 u E u 1 'O t1-+ );z.7 ."-I ^O O ! u a4 )4 G u LL 1J 00 r CO WC 1 C.1 __ I CC I 0 a w c I u CU 1 C I m li S _ O I u 'r1 L N L 1 .0 En w ° I I -C L C) C I u 8) I C 0 C C i —'.. — iC a) �1 1 to 3 'o C $4 1 u I I -...4Z' v C CIS CO I w C .a 3 i F—,u 0 1 Z ' .-+ N el -T to tC r- a0 as 00 .. rn s to *al .-r 1....1t C I CC CC CC co C CC C C C C C CC C Ca C C C) I d C) C) C) C) C) C) C) 0) 0) C) C) Ci .�C) >, >"° >- r >- >.• r >- >• >- >. 1. ' 1 _ ___— Form G Page 13 of 20 m L 0 H 1.4 a) A 1.J O —i I a) .a -+-1 N aiG ,1 - C a) a L ^ rl .-4 U =• W I C? O .-4 "rj G I ,J Cl a) a7 +-I 6 C) c9 G. .-4 .1-1 tea) cl CY. C Cu w >a a • C, m a) G oo ,o -,-1 G S to u C c — W - 1 1C. I at, s, t1 G 4 '-4 ,J 'U W I +J 1+ la a a) m m i E a) -a U G -.4 O - I u ✓ I > , CO ..— — U 0 L 41 z G l+ i.l a) 4) U_ W a .G a) 11 -,-.1 • 11 c $ CO Cr a s w Cr)— L 1 a) CS L ♦.1 ,� c ro E i w :.) s O — '' c L - 0 G A G CO +e O CO G )-4 I 0 OO IIJ l�. —— 003 A 0 .r G 'l7 a) N 7 G• '11 A 4.4 C) *' CI) XS >„ — G —— U O I 1 1 I I I I 1 I I I I I 1 1 s E. 2 .--/ b Z O— 6 . ...e N ["1 s? u'1 vo r` U1 O, — ... r en p-+0 -1(1v r.4 C l+ I- 1+ W F+ 10 1+ 14 I. l4 1+ 1+ 1+ 14 1.4 a a) C C C7 C C C a C C C C C C C b ;O., C) Cl C) CJ C) C) C) C) C) CO C1 C! C! C) a) w >- :• P. > >- >. P. >- >- r >- P. >» >- 1 Form G Page 14 of 20 DEPRECIATION JUSTIFICATION SHEET Depreciation Life Item (years) 1. Antenna(s) & Towers 2. Microwave 3. Headend 4. Earth Station 5. Distribution: a. Aerial b. Underground c. Pole arrangement 6. Drops 7. Converters 8. Buildings: a. Headends b. Studio c. Offices _ 9. Leasehold Improvements, Furniture, Fixtures 10. Origination Equipment 11. Land* 12. Test Equipment, Tools , Spare Parts & Inventory 13. Vehicles —.. 14. Preoperating 15. Engineering 16. Pay Cable Converters (and related equipment) 17. Capitalized Payroll 18. Other (detail) *Not depreciable. For. G Page 15 of 20 • PAYROLL EXPENSE Under each category below, specify actual titles of anticipated personnel (e.g. , system manager under General & Administrative; access coordinator under Origin- ation; etc.) . In the parentheses ( ), indicate the equivalent number of full- time employees for each category for Years 3, 5 and 10 (e.g. , an entry might ap- pear as $97,500 (7)--indicating seven employees receiving a total of $97,500 in that particular year) . * ANNUAL SALARIES AND WAGES (in $000s) Category I Year 3 I Year 5 I Year 10 A. Plant 1. ( ) ( ) ( ) 2. ( ) ( ) ( ) 3. ( ) ( ) ( ) 4. ( ) ( ) ( ) 5. ( ) ( ) ( ) 6. ( ) ( ) ( ) 7. ( ) ( ) ( ) . 8. ( ) ( ) ( ) 9. ( ) ( ) ( ) 10. ( ) ( ) ( ) B. Origination 1. ( ) ( ) ( ) 2. ( ) ( ) ( ) 3. ( ) ( ) ( ) 4. ( ) ( ) ( ) 5. ( ) ( ) ( ) 6.6 ( ) ( ) (• ) 7. ( ) ( ) ( ) 8. ( ) ( ) ( ) 9. ( ) ( ) ( ) 10. ( ) ( ) ( ) C. General and Administrative 1. ( ) ( ) ( ) 2. ( ) ( ) ( ) 3. ( ) ( ) ( ) 4. ( ) ( ) ( ) 5. ( • ) ( ) ( ) D. ether 1. ( ) ( ) ( ) 2. ( ) ( ) ( ) Total NOTE: Year 1 begins on the date that the MCCB confirms the franchise. Form G Page 16 of 20 EXPENSES--YEARS 3, 5 AND 10 DETAILED PROJECTIONS* Category 1 Year 3 1 Year 5 1 Year 10 A. Plant: 1. Salaries a. Overtime 2. Employee Benefits 3. Maintenance 4. Converter Maintenance 5. Pole and Site Rentals 6. Maintenance 7 . Power 8. Vehicle Expense 9 . Rent — - 10. Payroll and Expenses Capitalized ---- 11. Other** - TOTALIPLANT (continued) *Fifteen-year totals to be reflected in Summary on Form G, page 19. **For all "other" categories of a particular total operating cost , specify the individual components that make up the "other" category and document these expenses . NOTE: On a separate sheet, please describe all assumptions made to develop operating expenses such as power cost per mile, number of subscribers , per general and administrative clerk or technician, leasing cost per vehicle, etc . Form G Page 17 of 20 EXPENSES—YEARS 1 , 3 , 5 AND 10 DETAILED PROJECTIONS*--Continued Category 1 Year 1 I Year 3 1 Year 5 1 Year 10 B. Origination Expenses: 1 . Salaries 2. Ovet ime _ 3. Benefits 4. Rent 5. Maintenance _ 6. Vehicle Expenses 7. Common Carrier (Terrestial) 8. Local Program Materials a. Tape Stock b. Film _ c. Misc. Supplies • 9. Satellite Signals+ a. Independents b. Other c. P'ay Cable 10. Stand–alone Program Material a. Film Service b. Other Nonautomated c. Automated Programming 11. Promotion (LO & Access) 12. Other Miscellaneous++ e Total (continued) *Fifteen–year totals to be reflected in Summary on Form G, p. 19. +List all signals imported and their corresponding annual cost (i.e. , WTBS—$ , MSG--$ , UPI—$ ) . -f+List separately. Form G Paae 18 of 20 4 EXPENSES—YEARS 3, 5 AND 10 DETAILED PROJECTIONS—continued Category 1 Year 3 1 Year 5 1 Year 10 C. General, Selling & Admin— istrative Expenses 1. Salaries a. Overtime 2. Benefits 3. Light, Heat & Power 4. Vehicle Expense 5. Rent 6. Travel & Entertainment 7. Contributions 8. Professional Services 9. Stationery & Supplies 10. Postage & Freight 11. Advertising & Promotion 12. Telephone and Telegraph 13. Sundry Office Expenses 14. Insurance 15. Bad Debt Accounts 16. Start—up Expenses 17. State and Local Taxes 18. Franchise Fees 19. License & Permit Fees (Local) 20. Copyright Payments 21. Services Purchased from Parent Company* 22. Payroll & Expenses Capitalized 23. Other** TOTAL GS&A *If applicable, fill in Form G, p . 18 in complete detail . **For all "other" categories of a particular total operating cost, specify the individual components that make up the "other" category and document these expenses. NOTE: Year 1 begins on the date that the MCCB confirms the franchise. Form G Page 19 of 20 w 0 a L 00 ri 0 G a 0 ori 0 0 1J -0 a al a U a) /V r-i L a .--i 1J IF O •J al L1 L O a 3 .-. 0 uJ 6 O • H ar >• i b 1, @ 1-1 0 CU a a — a >, •' CO O a a) a d . U a a a) O G U 0 _0 .61 a) a) a) .^°. -1 G ri .-4 O 0 14 R+ '+'i u a) U te. � a L G Ti iJ CO CO X id a) z -^i U 0.1 a al 'V 0 CO03 .° 1.) a J E-d .0 r-1 0 a) 0 d a a) ..0 N ai 14 a — f al U al -a • _0 a 6 a m• a 0 -i L O -i Ol 0 1. a 1+ L .r-i 14 H C30 i CO U 'O U0 is: i-. a) b �y 1+ 04 C) "C r--{ • CO E o4 ..a .--10 0 H — i G4 -0 - O L+ a) 4-4 0 e G a1 co 1+ I C▪ Ual .0 CE1 i 4-1 -0 E 0 . 1 :4 '-i a co id ~ 1 Q+ 0. m a L r- U r, r @gi - ac-.)U w ✓ W ri , a 6 •r-1 v 0 O — >, JJ I { I V U .-i 0 co 0 00 .-i a A U G C) a 43. a i1.1 O co 00 ,-.4U 0 cn CY U .-1 U 0 41 0 a al Z 0 0 ^ 1. a >, U s � � L0v a CC U b . A. O Cr - ' ) VI 1+ a i O 0 O 1+ a) • .--i L CO L r♦ Cl. 4 CO to CO e a a 'O 00 0 CU % XI .0• � dJ ri u >✓ u w 0 — C O u u G a W a O u U .0 'C 0 a ri 0 ca a a1 CO 1-4 • CO a C 6 U 0.'v .-i a) ".-1 a. 0 g 1. tO oo > @ a) a) 0) C) 0 L+ • Li > .0 C a) O 14 to 0 In t a >1 .•, .J > @ a) O L id — LLd W 0 0 F-e 4 O 1 u + • .-, N m -S v'1 r-• CO t3+ O ...I N l`1 •:l tr1 O >" 00 O 0 CrL+ I 0 .-i ..4 .-+ .-r ..--4 .-.4 W OL 0 " a) O L 1. 1. 14 14 l+ 1. l.+ 1+ H id 1+ L r H i+ 1 H 0. a U C...3 P-1 y a 0 0 a a 0 a a 0 a a 0 0 a a a Q 1+ H t-+ 14 1+ a) a) a) a) a) a) a) a) a) a) a) a) c) a) a) z 0 w 0 F+ a) >• >+ >• >• >. >• >• ›. >+ >+ Y. >. Y. >+ >+ --- U ca O z Form G Paae 20 of 20 a CO I o H ,-a L 4 O L p 7 Cn 1, d d 42) C C/S JJ C.D 0 — _ i M CO I c +, -r4 --4 W LL, ,--4 C 0 7 _ CO = . — C1 C3 1 L U 0 G ^ 71 C IO to W 0 —— I aJ 4 ..0 ,G-+ Z W 1.1 —, 0 CO ti® ( )4 i H I11.4 C7 U . O 13 I O O CO CO to 1 f- v L v W �6+ w V) E ca a i. Z W r-4 C y 3-+ CO Cn 67 L O — w f aII M ci L 0) 0 u L ci — 'L -_ f 4.4 1J H d C 0 L 0 am a C r� M ci MmL .W U CJ Ti -,-+ w —4 C u 47 y cC C >.+ U "--141 I Cl C) 0C] E. V) _ d CO til m du b C7 Q CO CO 0 W ) C) O) Cl C) 0) C) C) C) C) Ci Cl C) C) z >'4 COQ C)as P. ;: P. r >- >4 >- P. T. P. T. T. P. P. P. • 3 FORM H: SERVICE AREAS, CONSTRUCTION SCHEDULES, AND CONSTRUCTION PRACTICES Form H Page 1 of 4 a INITIAL SERVICE AREA 1 . } Attach as an appendix to this application a map indicating t the boundaries of the initial service area to be construc.ed in each six-month period of construction. * LINE EXTENSION AREA 2 . Detail policies and timetable for providing service to exist- ing residences outside the initial service area. Include policies and timetable for new housing developments that may be built. *Year 1 begins on the date that the MCCB confirms the franchise. Form, H Page 2 of 4 CONSTRUCTION SCHEDULE BY MILEAGE (Basic Subscriber Network in Initial Service Area) Category 0-6 Months / 7-12 Months / 13-18 Months / 19-24 Month a. Aerial plant miles b. Underground plant miles with conduit* c. Underground plant miles w/o conduit* d. Total plant miles (for year specified) e. Cumulative plant miles completed (inception to date) f . Cumulative percentage completed (inception to date) Total Construction Period: months from date the MCCB confirms the franchise. • *Applicant must use the figures given in Table 1 for under- ground plant mileage. NOTE: Year 1 begins on the date that the MCCB confirms the franchise. Form H Page 3 of 4 4 CONSTRUCTION PRACTICES 1. System Construction a. Will construction be undertaken by a turnkey =Contractor? [ ] Yes [ ] No b. If "yes:" (1) Has turnkey contractor been selected?* [ ] Yes [ ) No (2) Who is turnkey contractor? 2. Discuss availability of work crews and equipment to ensure compliance with construction schedule. Detail outstanding agreements with construction companies or equipment suPPliers. Supply copies of any commitments regard— ing ard— ing this particular project. r • 3. Discuss proposed construction standards dealing with safety and relia— bility. List construction codes that will be followed. i' *It is expected that the franchisee will submit a copy of the turnkey draft contract to the city prior to execution. Form H Page 4 of 4 3 CONSTRUCTION PRACTICES (continued) 4. List or discuss standards to be followed regarding tower construction, marking and lighting. 5. Do you have a manual of construction practices to be followed by con— struction crews? [ ] yes [ ] no If "yes," attach a copy of the manual as an appendix to this application. • 6. State applicant's construction policy if utilities are located both aer— ially and underground. F 4 FORM I: CHANNEL CAPACITY AND SYSTEM DESIGN Form I Page 1 of 32 A CHANNEL CAPACITY AND SYSTEM DESIGN 1 . *Proposed System Design Plant Miles a. Mileage (1) Subscriber Network - basic subscriber system (conform to totals on Form H, page 3) . (a) single cable? [ J or (b) dual cable? [ l (2) Institutional Network (if separate institutional cable) . (3) Other (explain) . b. Design Type Briefly describe the type of layout that will be used to provide coverage to the franchise area. Example : "hub system linked by AML, radial trunk layout using a remote headend inter- connected by super trunk, dual-trunk, dual-feeder and separate institutional network, each using 300MHz equipment" . Form I Page 2 of 32 CHANNEL ltAPACITY AND SYSTEM DESIGN (continued) 2. Describe distribution system, cable and equipment. Give manufacturer, type and model number for the following.* Please Note: If any equipment proposed for use (in this or other sec— tions of Form I) is nct presently available for purchase, this fact must be indicat4d (e.g. , converters in development but not yet available). Cable: Aerial Buried Drop Active Electronics: Trunk Amplifiers Bridging Stations Line Extenders Power Supplies Standby Power Systems Distribution System Institutional System Alarm System Converters • Addressable Taps Other Passive Electronics: Splitters Power Combiner Subscriber Taps Connectors 4 Other *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de— tailed specifications for such equipment. Form I Page 3 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 3. Will converters be initially provided to all subscribers, for all tiers of basic service? [ ] Yes [ ] No If "no," explain under what condition converters will be made available. • a Form I Pau 4 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 4. Describe plans to operate or contract for transmission services using the following bands. • a. * Common Carrier • b. Cable Television Relay Service (CARS) • c: Multipoint Distribution Service (MDS) d. Other a Form I Page 5 of 32 CHANNEL; CAPACITY AND SYSTEM DESIGN (continued) 5. Describe plans to operate or contract for any satellite earth station(s) including appropriate technical specifications (e.g. , size of antenna; manu- facturer of antenna; low-noise amplifier make, model number and noise figure; receiver make and model number; standby power; etc.)* oba. Has frequency coordination study been performed? [ ] yes [ ] no b. Have on-site measurements been made? [ ] yes [ ] no If "yes ," to (a) and/or (b), attach copy(s) as an appendix to this application. c. Will earth station(s) be protected by FCC license? [ ] yes [ ] no *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de- tailed specifications for such equipment. 1 A Form I Page 6 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 6. SERVICE LEVEL SEPARATION a. $ay Cable Isolation describe design specifications for the delivery of pay cable tele— vision, including methods of security (e.g. , negative—option or -posi— tive—option traps, sync suppression, addressable converters, etc.). b. Tier Isolation If more than one basic service tier is to be provided, describe how lower tier subscribers will be isolated from receiving upper tier pro- grAmm{ng. Form I Page 7 of 32 CHANNEL 'CAPACITY AND SYSTEM DESIGN (continued) 7. Describe headend design and reception facilities (including make and model numbers of antennas, signal processor, modulators, demodulators and FM processors) .* Indicate whether signal studies or measurement programs have been undertaken in selecting the proposed site(s) . Attach as an appendix to this ap wlication a summary spectrum utilization chart for each activated cable in the proposed system. a. Will HRC channelization be used? [ ] yes [ I no b. Will common video synchronization be used? [ ] yes [ j no c. Will individual FM radio signal processing be used? [ J yes [ I no *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de— tailed specifications for such equipment. Form I Page 8 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 8. HOME SECURITY SERVICE a. Equipment 4 If proposed, describe home security service to be installed (in— cludt make and model numbers).* • *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de— tailed specifications for such equipment. Form I Page 9 of 32 CHANNEL-CAPACITY AND SYSTEM DESIGN (continued) • 8. HOME SECURITY SERVICE (continued) b. Availability ' Will this service be immediately available as each portion of the cajle network is activated? [ ] yes [ ] no If not, when and on what basis will such service be made available? c. Personnel Will a separate staff be provided to operate the alarm service or will cable service personnel be shared among the operating divisions? Will contract employees be used? Explain. •d. Operations • How will emergency situations be verified? Form I Page 10 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 9. Describe any other headend electronic and/or subscriber terminal equip- ment* that will be initially installed or offered for immediate installation which will support pay-per-view, energy management, text display, polling or other sophisticated services. Indicate firm dates for the introduction of any services that are described but which are not to La initially available. Itemize any arrangements made or agreements reached that bear directly on the programming sources and/or data bases/software needed in connection with the optional services described in this section of the application. • *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de- tailed specifications for such equipment. Form I Page 11 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 10. Is status monitoring of system to be employed?. [ ] yes [ ) no If "yes,"describe, in detail, the status--monitoring system you plan to use.* • • • *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de— tailed specifications for such equipment. Form I Page 12 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 11 . Describe proposed Emergency Alert System for overriding audio t and video including make and model numbers of equipment. * Also indicate how the system will be activated and from which locations. *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative , applicant may provide detailed specifications for such equipment. Form I Page 13 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) • 12. Describe plans for standby power at the headend, hubs and satellite terminal. Give make and model numbers of equipment as well as time capacity. Indicate whether environmental systems (i.e. , air conditioning and lighting) are to bE powered during standby conditions.* *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de— tailed specifications for such equipment. Form I Page 14 of 32 z CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 13 . 1 Describe the equipment to be used for programming any auto- mated channels, including make and model numbers. * List keyboards and other equipment to be used for programming and entering data from remote locations. Describe the con- nections to be provided from these locations to the headend for transmission of the data . • *It will be presumed that equipment described or its equiva- lent will be used in actual construction. As an alternative , applicant may provide detailed specifications for such equipment. Form I Page 15 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 14. Channel capacity to and from subscribers (Subscriber Network).* a. Downstream: 0(1) Frequency Spectrum —MHz (2) Channel Capacity (3) Channel Capacity Initially Activated b. Upstream: (1) Frequency Spectrum — MHz (2) Channel Capacity (3) Will upstream be initially activated from all subscribers? [ ] yes [ ] no c. iIf "no," indicate when, under what circumstances and how future capacity will be provided. (1) When and under what circumstances? (2) How? • *If more than one cable, indicate spectrum and capacity of each and provide totals. Form I Page 16 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 14 . 1 Channel capacity to and from subscribers-Subscriber f Network (continued) d. Will upstream be initially activated along any portion of Subscriber Network? [ ] yes [ ] no If yes, please explain. Also, discuss any provisions made to circumvent unwanted signal ingress ("noise") in the upstream path. e. Will upstream capabilities be available for lease by third parties? [ ] yes [ ] no ' If yes, explain policies and rates for leasing. f. Justify the capacities proposed for both upstream and downstream use in terms of projected service demand. Form I Page 17 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 15. Additional channel capacity to and from institutions (Institutional Net- work—if proposed; see Instructions to Applicants). A a. Downstream: E (1) Frequency Spectrum -MHz • (2) Channel Capacity (3) Number of channels to be initially activated? • b. If full downstream capacity will not be initially activated, indi- cate when, under what circumstances and how future capacity will be provided. (1) When and under what circumstances? '(2) How? • q Form I Page 18 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 15. - Additional channel capacity to and from institutions (Ilistitutional Network) (continued) . c. Upstream: (1) Frequency Spectrum (per cable) - MHz (2) Channel Capacity (3) Channel capacity initially activated? d. Describe in detail when, under what circumstances, and how upstream capacity will be provided to institutions . (1) When and under what circumstances? • (2) How? e. Is a separate institutional cable to be constructed or will institutional channels be carried in some other way? Explain. f. Will upstream and interactive capabilities be available for lease by third parties? [ ] yes [ ] no If yes , explain policies for leasing. Form I Page 19 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 15. Additional channel capacity to and from institutions (Institutional Net- work) (continued) . h. f List institutions proposed tc be included in institutional network. Form I Page 20 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 15. Additional channel capacity to and from institutions (Institutional Net— work) (continued) . i.(110 Clearly indicate whether the institutions listed on the previous page [I-15(f)] will be initially connected or simply passed by cable. Indicate the type of service (basic subscriber service and tier, drop from the institutional network, etc.) to be provided to each institution. (2) Discuss the provision of terminal equipment for video and data origination to institutions. Include rates, if any, to be charged for such terminal equipment. (3) Discuss centralized switching equipment to support use of the pro— posed network. (4) Describe how the upstream/downstream network will be coordinated. Form I Page 21 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 15. Additional channel capacity to and from institutions (Institutional Net— work) (continued) . i. (5) Describe anticipated uses of the institutional network. Also give details of any agreements with or commitments to any potential institu— tional network user(s) . (Attach any such letters or agreements as ap— pendix to this application.) Justify your choice of the number of channels to be provided in terms of projected institutional and/or com— mercial user demand. 1 • Form I Page 22 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 16. Discuss expansion capability with regard both to the short—term and the long—term, including specific references to the degree of flexibility for adapting the proposed system to increasing or changing capacity requirements. • • • 1 Form I Page 23 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) Describe proposals for interconnection with other cable systems in the immediate area and the Twin Cities area. Applicant should be Ptmiliar with MCCB rules relating to area wide interconnection reg4irements (Chapter 15 : 4 MCAR Sections 4 . 220 and 4. 229) . 17 . System Interconnection a. Interconnection between headends: (1) Microwave (a) Describe the type of microwave* and indicate whether spectrum availabilities have been determined to support the use of this equipment. (b) Number of channels _(i) Downstream: (ii) Upstream: (c) Frequency spectrum: - MHz (d) Estimated Power: (2) Cable (a) Describe the size and type of trunk cable (list make and model number) : * *It will be presumed that equipment described or its equiva- lent will be used in actual construction. As an alternative , appli- cant may provide detailed specifications for such equipment. Form I Page 24 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 17 . System Interconnection (continued) (2) Cable (continued) (b) List interconnection equipment (amplifiers, etc . ) , giving make and model number. * Indi- cate modulation technique to be used. • (c) Frequency Spectrum: (i) Downstream channels - MH2 (ii) Upstream channels - MHz (d) Initial Activation : (i) Downstream channels (ii) Upstream channels *.It will be presumed that equipment described or its equiva- lent will be used in actual construction. As an alternative, appli- cant may provide detailed specifications for such equipment. Form I Page 25 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 17 . System Interconnection (continued) (3) Describe contacts made with operators of area cable systems and/or applicants for other area system franchise regarding interconnection compatibility. (4) Describe channel content to be shared among • systems via interconnection. 1 -- Form I Page 26 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 17 . System Interconnection (continued) (5) What portion of the capital budget, if any, has been allocated for interconnection facilities? t Form I Page 27 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 18. Technical Standards Lis the key system technical performance standards which will be met by the p,roposed cable television system. Include at least carrier-to-noise ratio, composite triple beat and cross modulation specifications. Provide calculations supporting these specifications associated with the following transmission paths. a. Worst case satellite received signal to furthest- subscriber, includ- ing distribution system and super trunk effects. b. Worst case off-air signal to furthest subscriber, including distrib- ution system and super trunk effects. c. Worst case furthest institutional orginator to furthest subscriber, including upstream path, distribution system and longest super trunk effects. All calculations should be related to full loading of nonsynchronized television signals. Any enhancements such as HRC channelization, synchronous carrier or FM video modulation must be separately stated and dB improvements individually listed. Form I Page 28 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 18 . . Technical Standards (continued) The applicant certifies and guarantees that these freely offered technical standards that exceed the minimum requirements of FCC are within the financial capability of the proposed system as demonstrated on the pro forma statements and will be delivered to the City of Shakopee, Minnesota, system. Signed: Title: Form I Page 29 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 19. Amplifier Cascade What will be the longest amplifier cascade in the proposed system? Number of amplifiers: Number of miles: Type of cable: 20. Performance Tests Describe procedures for initial proof of performance tests and ongoing performance tests including number and general location of test points. De— scribe the test equipment to be used; method and frequency of test equipment calibration; and forms and method of recording field data and permanent rec— ordkeeping. s i Form I Page 30 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 21 . System Maintenance Describe procedures for routine preventive maintenance, including type and frequ@ncy of system inspection and testing, number and qualifications of technical staff and service facilities. • • f Form I Page 31 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 22. Customer Complaint Policies Discuss procedures for responding to and resolving customer complaints. Give maximum response time for responding to and resolving customer complaints receives during normal business hours, after hours, weekends and holidays. Indicate how subscribers will file trouble reports during office hours, after hours and on weekends. Will answering services or automatic answering machines be used at any time? r Form I Page 32 of 32 CHANNEL CAPACITY AND SYSTEM DESIGN (continued) 23. System Map Attach, as appendix to this application, a map indicating estimated lo— cations of headend, tower and antenna, hubs, studio, microwave facilities, earth station(s) , trunk lines of the subscriber and any institutional network. 24. Attach, as appendix to this application, a headend block diagram showing all major components. Provide separate illustrations for master headend, slave headends, hubs, etc. , as may be needed to describe the facilities to be provided. r • FORM J: PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS I • Form J Page 1 of 13 PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS SERVICE TIER NO. (if applicable) NOTE: If proposing multiple tiers of service, complete separate Form J (pages 1 through 3O) for each tier. 1. Broadcast Television Channels a. Local Broadcast Signals (carried full-time) : NetworkI I Call (Broadcast, Cable I Proposed Affili-I City I Letters I Channel I Channel (Activation ation* I 1 I Date** s — *For example, ABC, CBS, NBC, PBS, independent, other. **Specify proposed activation date if other than initial date. Form d Page 2 of 13 PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) NOTE: If proposing multiple tiers of service, complete separate Form .1 for each tier. 1. Broadcast Television Channels b. Imported television broadcast signals (carried full-time) . Networks I Call 'Broadcast' Cable ' Proposed Affili-' City ' Letters ' Channel ' Channel 'Activation ation* I � I _ I I Date** $ — — i *For example, ABC, CBS, NBC, PBS, independent, other. **Specify proposed activation date if other than initial date. Form J Page 3 of 13 PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) NOTE: If -proposi^g multiple tiers of service, complete separate Form J for each tier. 1. Broadcast Television Channels c. Television broadcast signals proposed for part-time carriage. Network( I Call (Broadcast) Cable ( Proposed Affili-I City I Letters I Channel ( Channel (Activation ation* I I I I I Date** *e.g. , late-night only, syndicated program black-out time, network fill- in. Form J Page 4 of 13 PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS - continued SERVICE TIER NO. (if applicable) 2 . Nonbroadcast Channels (does not include pay cable service) _a (1) Automated Programming. (e.g. , time/weather/news/ slo-;scan news/sports/stockmarket/etc. ) Indicate which staff member(s) will be responsible for supplying the information for which the applicant is the major source. If applicant will make available equipment for entering data on automated channels to other locations in the city, describe equipment, location and terms for use. a (2) Teletext and Viewdata Services. On a separate page , detail teletext and viewdata services that will be provided. Include bandwidth requirements, a description of the service, projected date of service activation and persons or entities responsible for supplying or providing the service. Service Source Cable Hours Per Proposed Channel Day (est. ) Activation Date* *Specify proposed activation date if other than initial date. Form J Page 5 of 13 PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) 2. Nonb-zoadcast Channels (does not include pay cable services) b. Nonautomated Programming (1) Received Via Satellite Service 1 Source 1 Cable 1 Hours Per 1 Proposed (C-SPAN, etc.)I (Satcom I, etc)] Channel 1 Day (est.) Activation Date* • *Specify proposed activation date if other than initial date. Form J Page 6 of 13 PROPOSED SIGNAL CARRIAGE AND CHANNEL ALLOCATIONS--continued SERVICE TIER NO. (if applicable) 2. Nonbr'oadcast Channels (does not include pay cable services) i b. Nonautomated Programming (2) System originated programming (not via satellite) includes program— ming locally produced, purchased, leased or obtained from other sources (excluding access) . Service ! Source I Cable I Hours Per 1 Proposed Channel ! Day (est.) !Activation Date . • *Specify proposed activation date if other than initial date. Form J Page 7 of 13 PROPOSED SIGNAL CARRIAGE AND ALLOCATIONS (continued) SERVICE TIER NO. (if applicable) 2. Nonbroadcast Channels c. Designated Access Channels (channels set aside for nonoperator—origi— natedi local programming) Cakie Hours Per Day Proposed If Type* Channel Available 'Activation Date+ o • • • om,po *e.g. , public, local government, educational, leased, composite (list com— posite site uses) , or any other specific allocation contemplated. **If channel is shared with other service, indicate whether access has priority use. +Specify proposed activation date if other than initial date. Form J Page 8 of 13 PROPOSED SIGNAL CARRIAGE AND ALLOCATIONS (continued) SERVICE TIER NO. (if applicable) 3. Pay Cable Service a. Per channel service Cable Hours Per Day , Proposed Type* I Source Channel I Available 1Activation Date** r p *For example, first-run movies, regional sports, classic movies, etc. **Specify proposed activation date if other than initial date. r Form J Page 9 of 13 PROPOSED SIGNAL CARRIAGE AND ALLOCATIONS (continued) SERVICE TIER NO. (if applicable) 3. Pay Cable Service b. Per program service (if applicable) Type* 1 SourceCable (Hours Per Day+ Proposed Channel Available Activation Date** *For example, first-run movies, regional sports, classic movies, etc. **Specify proposed activation date if other than initial date. Form J Page 10 of 13 SUMEARY OF CHANNEL ALLOCATIONS SERVICE TIER NO. (if applicable) On the chart below, briefly describe the designated allocation of each channel on the proposed system (e.g. , KXYZ-TV , Ch. 7 , ABC; 24-hr. sports, automated; educational access; Pay TV; etc.) . Indicate with an asterisk (*) any channel(s) that will not be activated or available initially. Cable Chan-1 Designated Programming/Service nel Number Form J Page 11 of 13 PROPOSED SIGNAL CARRIAGE AND ALLOCATIONS (continued) 4. Audio Service a. Broadcast Radio Stations (AM, FM, Shortwave and other frequencies) -(1) FM allband [ j ; or (2) individually processed signals [ J . z ` Format* 1 Hours Per (Proposed Activa—J Call 1 Day (est.) ) tion Date** 1 Letters+( City • • (continued) *For example, country, rock, etc. **Specify proposed activation date if other than initial date. +Indicate AM, FM, Shortwave or other. Form J Page 12 of 13 PROPOSED SIGNAL CARRIAGE AND ALLOCATIONS (continued) 4. Audio Service a. Broadcast Radio Stations (AM, FM, Shortwave and other frequencies) (1) FM allband [ J ; or (2) indiviCually processed signals [ j . Format* I Hours Per (Proposed Activa-1 Call City I Day (est.) ! tion Date** I Letters+ ) • (continued) *For example, country, rock, etc. **Specify proposed activation date if other than initial date. +Indicate AM, FM, Shortwave or other Form J Page 13 of 13 PROPOSED SIGNAL CARRIAGE AND ALLOCATIONS (continued) 4 . Audio Service ,b. Nonbroadcast Audio Programming Hours Per Proposed Day Activation Title/Format* Source+ (estimate) Date** +Satellite, microwave, local origination, local access, etc. *For example, country, rock, etc . **Specify proposed activation date if other than initial date. Will the Audio Service be available to subscribers of all tiers? [ ] yes [ ] no If no, with which tiered offerings will audio service be available? } FORM K: LOCAL FROGR.AMMING Form K Page 1 of 4 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 avail— able to all classes of users, pleast_ 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 ea:h piece or grouping of equipment for each proposed facility. 1. Local Origination Studio: a. Location (approximate) : b. Size (approximate) : c. Will this facility also serve as an access studio? [ ] yes [ ] no 2. 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 for cablecasting local origination pro— grams on the system. a. Will this equipment also be available for access use: [ ] yes [ ] no *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 Page 2 of 4 ACCESS PRODUCTION EQUIPMENT AND FACILITIES Please describe production 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 : a. Location (approximate) : b. Size (approximate) : c. When will studio be available for community use? 2 . List access equipment that will be made available to access channel users on an exclusiveor priority basis (provide make and model number and your cost for equipment to be provided at each facility) . * Include equipment to be used exclusively for cablecasting access programs. 3 . Explain maintenance equipment budgets and policies that will be available to access channel users. 4 . Explain plans for integrating existing production facilities located in the metropolitan area in your overall access facilities plan. 5 . Submit commitments for staff , funds , equipment, etc. , and policies on your anticipated relationship to a community access corporation that may be recognized by the city to promote and provide access programs. 6 . Describe plans for promotion of access including marketing and advertising. 7 . Describe policies on your relationship to independent pro- ducers (purchasing programming, employment, etc . ) working in the metropolitan area. *It will be presumed that equipment described or its equiva- lent will be provided. Form K Page 3 of 4 COMMITMENT TO LOCAL ORIGINATION AND ACCESS PROGRAMMING* 1. Operating Budget (include only salaries, benefits, maintenance of pro- duction equipment, tape and film stock, miscellaneous supplies and promotion): L/0 Access Total a. First year $ $ $ b. Third year $ - $ $ c. Fifth year $ $ $ d. Tenth year $ $ $ 2. Staff Commitment: Full-time Part-time L/0 Access L/O Access a. First year b. Third year c. Fifth year d. Tenth year _ 3. How many part-time positions equal one full person year? 4. Approximately how many hours per week of local origination programming will be presented by system operator? Do not include automated programming, access programming, pay programming or programming received via satellite. Also, do not include repeat showings of a particular program. a. Programming produced locally by operator. hrs/week b. Programming obtained from other sources. hrs/week Total hrs/week S. What percentage of operating budget listed above will be allocated to access channel production assistance? percent 6. Discuss local programming philosophy specifically describing plans and objectives for access and local origination. Include the names of organiza- tions and individuals contacted by the applicant to assess local needs and desires. *This specifically excludes programming obtained via satellite. NOTE: Year 1 begins on the date that the MCCB confirms the franchise. Form K Page 4 of 4 ACCESS CHANNELS AND ADMINISTRATION 1. Applicant is to attach a complete set of rules and procedures for the operation of public, educational, government and leased access channels. The rules must describe: • (1) availability of channels to various users; (2) availability of equipment and rules governing use of equipment; (3) scheduling procedures for reserving equipment and channel time; (4) any rates to be charged, including deposits; (5) copies of contract forms and application forms; and (6) availability of production assistance, etc. • 2. Leased Access. Submit a plan describing the number of channels and/or bandwidth available for leased access, including that available for full—time and part—time lease. Include expected revenues from leased operations. t FORM L: PROPOSED RATES Form L Page 1 of 3 PROPOSED RATES Rate Schedule : Consideration will be given to applicants with the most reasonable installation and subscriber rate schedule that is at the same time justified in the financial pro forma statements by use of realistic levels of penetration. PERIOD OF RATE STABILITY 1 . Does applicant guarantee that no changes in any rates will be made until two years from the date of provision of initial service? [ ] yes [ ] no (Authorized Signature) If other, please state. 2 . Detail the proposed rate schedule for installation and monthly fees for basic subscriber services. If different tiers and options are offered, detail charges for specific tiers as designated in form J. Include rates for the initial service area and for each designated group of residences in the line extension areas shown on the map in the "Instructions to Applicants" . Include commercial rates and multiple dwelling unit fees in both types of areas. Show how the rates for residences and commercial units in the line extension area relate to the city' s preference for recovering the actual cost of the time and materials for provision of such service. In- clude charges for service calls to residential and institutional subscribers . Include policies regarding unusual or difficult connections of service. State rates for aerial and under- ground installations under 200 feet and for 200 feet and over. Form L Page 2 of 3 OTHER RATES la. If deposit is required for converter, state amount and describe conditions relating to ownership, use, repair and replacement. lb. . If any other deposit is required, please state amount, purpose and terms and conditions of such deposit. 2. Pay Cable : Detail proposed rates that will be charged for pay cable services in the initial service area and the line extension area. Include charges, if any, for lock-out devices and equipment installation . Indicate whether charges are monthly or assessed on a one-time basis. Form L Page 3 of 3 OTHER RATES - continued 3 . Studio and Equipment Usage Describe studio and equipment usage rates for commercial and noncommercial users . Include rates for studio production time , remote production time, supervision and instruction, leased channel costs, system playback costs and editing costs. 4 . 'Institutional Network Detail any proposed rate schedule for the institutional network including: a. commercial and noncommercial rates for video, audio and data uses (reference institutions listed in Section II H in "Instructions to Applicants") ; b. installation charges; c. rates for terminal equipment including installation, use , deposits, etc . ; and d. any other rates relating to the institutional networks . 5 . Service to governmentally-owned or leased buildings listed on RFP "Instructions to Applicants" Section II A. 2. a. installation fees (subscriber network) : (1) one cable outlet (per facility) $ (2) more than one outlet (per facility) b. monthly rate (subscriber network) $ �., c. which tier of service will these facilities receive? What converters, if any, will be provided to these facilities? 6 . Service to other governmentally-owned or leased buildings (please specify buildings) a. installation fees (subscriber network) : (1) one cable outlet (per facility) $ (2) more ..than one outlet (per facility) b. monthly rate (subscriber network) $ c . which tier of service will these facilities receive? What converters, if any, will be provided to these facilities? 7. Describe on separate page proposed advertising policies and rates for all channels and services. 8 . Describe rates for leased access channel (s) . 9 . Describe rates for per-use or per-channel charge for teletext or viewdata services. 10 . Other rates or policies not mentioned above. 4 FORM M: EMPLOYMENT PRACTICES Form M Page 1 of 1 EMPLOYMENT PRACTICES 1 . Present plans for compliance with all federal, state and local laws per- taining to discrimination, equal opportunity employment programs and affirma- tive action programs. Include your policies on hiring and utilization of minorities in job training, management, engineering, search committees , an- nouncing and filling job vacancies and contracting policies. FORM N: CONCLUDING SUMMARY Form N Page 1 of 1 CONCLUDING SUMMARY Please briefly summarize any elements of the proposal which may not have been adequately covered in other parts of the application forms. Anticipated future developments may be discussed, but should clearly be identified as such. Please limit responses to approximately 5 pages. Explain any omissions or other variations with respect to the require— ments of this proposal. PRELIMINARY CITY OF SHAKOPEE CABLE COMMUNICATIONS FRANCHISE ORDINANCE City of Shakopee Shakopee City Hall 129 East First Avenue Shakopee, Minnesota 55033 Telephone: (612) 445-3650 Draft: d , 1981 FINDINGS Section 1. STATEMENT OF INTENT AND PURPOSE, AUTHORITY, FRANCHISE APPLICATIONS 1.01 Statement of Intent and Purpose 1.02 Franchise Applications 1.03 Franchise Processing Fee Section 2. SHORT TITLE Section 3. DEFINITIONS Section 4. GRANT OF AUTHORITY AND GENERAL PROVISIONS 4.01 Grant of Franchise 4.02 Criteria of Selection 4.03 Authority for Use of Streets 4.04 Agreement 4.05 Franchise Term 4.06 Area Covered 4.07 Police Powers 4.08 Use of Grantee Facilities 4.09 Written Notice 4.10 Franchise Non-Exclusive 4.11 Certificate of Confirmation and Compliance with Board Standards Section 5. DESIGN PROVISIONS 5.01 System Design Concept 5.02 Initial Channel Capacity 5.03 Tw eraetive--Systems -1- 03 5.M Institutional Service 5.l0 Initial Geographical Coverage 5. Cablecasting Facilities 5. Interconnection b7 Provision of Service 5.1 Technical and Performance Standards 5. Test and Compliance Procedure iv 5..M. Emergency Prov-i- -+ s 'ecj ;re m tr, f s Section 6. SERVICE PROVISIONS 6.01 Services to be Provided 6.02 Minimum Requirements Section 7. CONSTRUCTION PROVISIONS 7.01 Initial Service Area 7.02 Line Extension Policy 7.03 Construction Timetable 7.04 Construction Delay 7.05 Construction Codes 7.06 Repair of Streets 7.07 Erection of Poles Prohibited 7.08 Undergrounding of Cable 7.09 Reservations of Street Rights 7.10 Trimming of Trees 7.11 Street Vacation or Abandonment 7.12 Movement of Facilities -2- # 2_ Section 8. OPERATION AND MAINTENANCE 8.01 Open Books and Records 8.02 Communications with Regulatory Agencies 8.03 Annual Reports 8.04 Monitoring and Compliance Reports 8.05 Additional Reports 8.06 Maintenance and Complaints 8.07 Safety 8.08 Service Contract 8.09 Subscriber Practices 8.10 Rates and Other Charges 8.11 Rate Changes 8.12 Periodic Reviews and Renegotiation 8.13 Refunds to Subscribers and Programmers Corn mwn; Ey AC(C95 (Or('( r c: h Section 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS 9.01 Payment to t �l + y 9.02 Security Fund 9.03 Penalties from Security Fund 9.04 Relation to Other Penalties 9.05 Procedure 9.06 Bonds 9.07 Damages and Defense 9.08 Liability Insurance and Indemnification Section 10. REVOCATION. 10.01 G or-Rt rt to Revoke -3- 10.02 Procedures Section 11. FORECLOSURE, RECEIVERSHIP AND ABANDONMENT. 11.01 Foreclosure 11.02 Receivership 11.03 Abandonment Section 12. PURCHASE OF SYSTEM. 12.01 Grcl:a4.4 . Right to Purchase System 12.02 Procedures Section 13. RIGHTS OF INDIVIDUALS PROTECTED. 13.01 Discriminatory Practices Prohibited 13.02 Cable Tapping Prohibited 13.03 Privacy and Other Human Rights 13.04 Permission of Property Owner Required 13.05 Sale of Subscriber Lists Prohibited 13.06 Penalty for Failure to Comply w,hm Secho-„ /3 Prc si ops Section 14. MISCELLANEOUS PROVISIONS 14.01 Compliance with Laws 14.02 Sale or Transfer of Franchise 14.03 Expiration 14.04 Amendment of Franchise Ordinance 14.05 Franchise Renewal 14.06 Continuity of Service Mandatory 14.07 Removal after Termination or Revocation 14.08 Work Performed by Others 14.09 Duty to -Franchisee -4- 14.10 Interest Rate 14.11 Applicable Law and Court Decisions; Severability 14.12 No Recourse Against the c, 14.13 Nonenforcement by6r-a4-or 14.14 Subsequent Action by State or Federal Agencies 14.15 Administration of Franchise 14.16 General Provision on Rights and Remedies Section 15. EFFECTIVE DATE, PUBLICATION, ACCEPTANCE, GUARANTEE, EXHIBITS 15.01 Publication; Effective Date 15.02 Publication of Notices 15.03 Time of Acceptance; Guarantee; Incorporation of Offering; Exhibits -5- ORDINANCE NO. AN ORDINANCE GRANTING A FRANCHISE TO , TO OPERATE AND MAINTAIN A CABLE COMMUNICATION SYSTEM IN THE CITY OF SHAKOPEE; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF ITS PROVISIONS. SECTION 1. STATEMENT OF INTENT AND PURPOSE, AUTHORITY, FRANCHISE APPLICATIONS. 1.01 Statement of Intent and Purpose. City intends, by the adoption of this Franchise, to bring about the development of a System, and the continued operation of it. Such a development can contribute significantly to the communication needs and desires of many. Further, City may achieve better utilization and improvement of public services with the development and operation of # System. Studies engaged in by the Shakopee Ad Hoc Cable Communications Committee created by the city council of City have led the way for organizing this means of procuring and securing a System deemed best suited to the cable service territory comprising the City of Shakopee. This has resulted in the preparation and adoption of this Franchise. gam. 1.02 Franchise Applications . Applicants for a franchise shall submit to City written applications utilizing the standardized format provided by City, at the time and place designated by City for accepting applications, and including the designated application fee. 1 . 03 Franchising Processing Fee. Grantee shall be required to reimburse City for costs expended in soliciting (-a-ad—evaluating and processing the franchise award to the extent that such costs are not recovered from application fees. SECTION 2. SHORT TITLE This ordinance shall be known and cited as the "City of Shakopee Cable Communications Ordinance". L -7- SECTION 3. DEFINITIONS For the purpose of this Franchise, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsis- tent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number. The words "shall " and "will " are mandatory and "may" is permissive. Words not defined shall be given their common and ordinary meaning. 3.01 "Basic Service" means all subscriber services provided by Grantee, including the delivery of broadcast signals, covered by the regular monthly charge paid by all subscribers , excluding optional services for whi:h a separate charge is made. 3.02 "Board" means the Minnesota Cable Communications Board. 3.03 "Channel" means a six Megahertz (MHz) frequency band, which is capable of carrying either one standard video signal , a number of audio, digital or other non-video signals, or some combination of such signals. 3 : 04 "City" means the City of Shakopee and all of the territory within its present and future boundaries. City council is authority of City. 3.05 "Committee" means the Shakopee Ad Hoc Cable Communications Committee. 3.06 "Connection" means the attachment of the drop to the first radio or television set of the subscriber. 3.07 "Converter" means an electronic device which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber, and by an appropriate channel selector also permits a subscriber to view all basic subscriber signals included in the basic service delivered at designated converter dial locations. -8- 3.08 "Drop" shall mean the cable that connects the subscriber terminal to the nearest feeder cable of the cable. 3.9 "FCC" means the Federal Communications Commission or a designated representative. 3.10 "Grantee" means , its agents, employees, lawful successors, transferees or assignees. 3.11 "Gross Revenues" shall mean any revenue derived directly or indirectly by Grantee, its affiliates, subsidiaries, parent and any person in which Grantee has a financial interest or five percent (5%) or more from or in connection with the operation of the system, including but not limited to, basic subscriber service monthly fees, pay cable fees, installation and recon- nection fees, leased channel fees, converter rentals, studio rental, production equipment and personnel fees and advertising revenues. The term does not include any taxes on services furnished by Grantee and imposed directly upon any subscriber or user by the State, City or other governmental unit and collected by Grantee on behalf of said governmental unit. 3.12 "Installation" means the connection of the System from feeder cable to the point of connection. 3.13 "Interactive Capabilities" means capability or service that involves a message being transmitted by a subscriber back into the System or television set. 3.14 "Offering of Grantee" or "Offering" shall mean that certain document dated , entitled "Offering of Grantee" and signed by Grantee and Grantor, which document is on file with the Clerk of the City. -9- 3.15 "Person" means any corporation, partnership, proprietorship, indivi- dual or organization authorized to do business in the State of Minnesota, or any natural person. 3.16 "Public Property" is any real property owned by City other than a street. 3.17 "Resident" means any person residing in the City as otherwise defined by applicable law. 3.18 "Street" 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 City which shall , within its proper use and meaning in the sole opinion of City, entitle Grantee to the use thereof for the purpose of installing or transmitting over poles, wires, cables, conductors, ducts, conduits , vaults , manholes, amplifiers , appliances, attachments and other property as may be ordinarily necessary and pertinent to a System. 3.19 "System" means a system of antennas, cables, wires, lines, towers, waveguides or other conductors, converters, equipment or facilities, designed and constructed for the purpose of producing, receiving, transmitting, amplifying and distributing, audio, video and other forms of electronic or electrical signals, located in City. Said definition shall not include any system wholly internal to one or more multiple unit dwellings under common ownership, control or management, and does not use City' s streets or other public property. 3.20 "Subscriber" means any person or entity who subscribes to a service provided by Grantee by means of or in connection with the System whether a fee is paid for such service. -10- 3.21 "Tapping" means observing a two-way communications signal exchange, where the observer is neither of the communicating parties, whether the exchange is observed by visual or electronic means, for any purpose whatsoever. 3.22 "Two-Way System" means a distribution system that has amplifiers that can pass signals in both directions simultaneously. -11- SECTION 4. GRANT OF AUTHORITY AND GENERAL PROVISIONS 4.01 Grant of Franchise. This franchise is granted pursuant to the terms and conditions contained herein. Such terms and conditions shall be subordinate to all applicable provisions of state and federal laws, rules and regulations. 4.02 Criteria of Selection. The Grantee' s technical ability, financial condition and legal qualifications were considered and approved by the City in a full public proceeding affording reasonable notice and a reasonable opportunity to be heard. 4.03 Authority for Use of Streets . A. For the purposes of operating and maintaining a System in the City, Grantee may erect, install , construct, repair, replace, reconstruct and retain in, on, over, under, upon, across and along the streets within the City such lines, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of the System, provided that all �-- applicable permits are applied for and granted, all fees paid and all other City codes and ordinances are otherwise complied with. Prior to construction or alteration, Grantee shall in each case file plans with all appropriate City agencies and utility companies and receive written approval of such plans. B. Grantee shall construct and maintain the System so as not to interfere with other uses of Streets. Grantee shall make use of existing poles and other facilities available to Grantee. C. Notwithstanding the above grant to use streets, no street shall be used by Grantee if the City in its sole opinion determines that such use -12- is inconsistent with the terms, conditions or provisions by which such street was created or dedicated, or presently used. 4.04 Agreement. A. Grantee agrees to be bound by all the terms and conditions of this Franchise. B. Grantee also agrees to provide all services specifically set forth in, and to comply with all provisions of, its application to provide a System within the City. Further, failure of Grantee to provide a System as described in its application, at City's option, shall be a violation of the provisions of this Franchise. In the event of conflicts or discrepancies between the application of Grantee and the provisions of this Franchise, the opinion of City shall prevail . j,/, , 4.05 Franchise Term. This Franchise shall commence upon acceptance by Grantee "' T j and shall expire fifteen (15) years from such acceptance unless P terminated sooner as hereinafter provided. 4.06 Area Covered. This Franchise is granted for the territorial boundary of the City as it exists from time to time during the term of this Franchise. 4.07 Police Powers . A. Grantee ' s rights are subject to the police power of City to adopt and enforce ordinances necessary to the health, safety and welfare of the public. B. Any conflict between the provisions of this Franchise and any other present or future lawful exercise of police powers of City shall be resolved in favor of City. -13- 4.08 Use d' Grantee Facilities. City shall have the right to install and maintain, free of charge, upon the poles and within the underground pipes and conduits of Grantee any wires and fixtures desired by City. Grantee waives any claim against City arising from City's exercise of these rights. 4.09 Written Notice. All notices, reports or demands required to be given in writing under this Franchise shall be deemed to be given when delivered personally to any officer of Grantee or City Administrator of this Franchise or when forty- '— eight (48) hours have elapsed after it is deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to which notice is being given, as follows: If to City: If to Grantee: Such addresses may be changed by either party upon notice to the other party given as provided in this section. 4.10 Franchise Non-Exclusive. The franchise granted herein is non-exclusive. City specifically reserves the right to grant, at any time, additional franchises for a System. 4.11 Certificate of Confirmation and Compliance with Board Standards. This Franchise shall cease to be in force and effect if Grantee fails to obtain either a regular certificate of confirmation or renewal of Certificate of Confirmation from the Board, provided however, that Grantee may operate its System while the Board is considering its application for the renewal of its Certificate of Confirma- tion. -14- SECTION 5. DESIGN PROVISIONS 5. 01 System Design Concept. (The System shall be constructed ✓ ix conformance with the minimum requirements for a System design and the request for proposals draft and in accordance with the design concept adopted by the city Council . The complete System design will be negotiated with Grantee and included in the body of the franchise ordinance under this Subsection. ) • ' ��i.UI$ ' • • •.• . ; - - • 5. 02 Initial Channel Capacity. The System shall be 400 mghz with 50 activated channels and 30 channels programmed. "5701 T . ay and Interact-iv� ystems. The System shaT1 be a two-way system and sh. have inte .cti- e capabilities. ' 5. 03 Institutional Service. The System shall include free drops to be provided at Shakopee Senior High School , Shakopee Junior High School , Sweeny Elementary School , Pearson Elementary School, Central Elementary School , SACS Elementary School, SACS Middle School and Shakopee Women ' s Correctional Institution. The System shall also include return lines from Shakopee Senior High School to the head end and Shakopee Branch of Scott County Public Library. 5.01- .P6,5 Initial Geographical Coverage. Grantee shall design and construct the System in such a manner as to have the eventual capability to pass by every single-family dwelling unit, multiple-family dwelling unit, agency and business establishment within the area of the franchise. Service shall be provided to subscribers in accordance with the schedules and policies specified in this Franchise agreement. 5.09 Cablecasting Facilities. (Grantee' s required cablecasting facilities shall conform to the minimum requirements set forth in the request for proposals and any other minimum requirements established by the G464-q-I- u n . A complete descrip- tion of these cablecasting facilities shall be included in the body of this franchise ordinance under this Subsection. ) -15- 5,01 . Nt,ci Interconnection. Grantee shall provide the interconnection capability pursuant to specifications established by the City. City may, in the future, require Grantee to participate in interconnecting the System to other cable systems in the greater Minneapolis-St. Paul metropolitan area . Such interconnection shall be required when mandated by the Board, or when both City and the franchising authority for the other cable system(s) agree that such interconnection is desirable, and also on the number of channels to be transmitted and received by each system. When such interconnection is required, the cost shall be borne by both Grantees, in the proportion of number of channels received to total number of channels transmitted and received, under the assumption that benefits accrue primarily through receipt of additional channels. Grantee shall abide by Grantor ' s requests for interconnection and shall use its best efforts to negotiate interconnection with other system owners when requested by Grantor. In the case of regional or state-wide interconnection, the same principal shall apply. (This section shall be completed based on the proposal of Grantee as to its method of allocating costs for interconnection. ) -4,°1 V13-8 Provision of Service. After service has been established by activating trunk cables for any area, Grantee shall provide service to any requesting subscriber within that area 90 days from the date of request . 5 05 5-.-89 Technical and Performance Standards. System technical and performance standards shall be in accordance with standards promulgated by the FCC relating to cable communications systems contained in sub-part K of part 76 of the FCC' s rules and regulations relating to cable communications system, as well as in accor- dance with any standards adopted by City, and Grantee's franchise proposal as accepted by City. The results of any tests required by the FCC shall be filed within ten (10) days of the conduct of such tests with City and the Board. .0,i *i Test a jiCom.l i ance P,L.j idure. Gr. ee shall s.. °t, concurr' t with i ►, franchi - . .plicat in, a detailed .-s plan de cr '.ing the , eth..s and .c •dule' -I fp- 5,00 57410 Test and Compliance Procedure. Grantee shall submit, concurrent with its franchise application, a detailed test plan describing the methods and schedules for testing the System on an ongoing basis to determine compliance with the standards established by City. Such tests shall be performed periodically and shall be paid for by Grantee. (Grantee 's plan for such testing will be incorporated into this section. ) 5,( U 5>4fl Emergency Requirements . Grantee shall design and construct NI the System to include an audio and video emergency override of all channels during emergencies . An emergency power source will be detailed in Grantee ' s proposal . _E7- SECTION 6. SERVICE PROVISIONS 6.01 Services to be Provided. (The System shall provide, as a minimum, the services set forth in the requests for proposals. Services will be negotiated with the Grantee and a complete description will be included in the body of the franchise ordinance under this Subsection. Services shall not be reduced without prior approval of the City. ) . 6 . 02 Minimum Requirements. Grantee shall propose a System that will include, at a minimum, the following on all tiers of service: local government access channel; eductional access channel ; public access channel ; leased access channel ; regional access channel . -18- SECTION 7. CONSTRUCTION PROVISIONS 7.01 Initial Service Area. (The "initial service area" will be developed as a result of the proposals submitted by the various applicants. ) 7.02 Line Extension Policy. (A line extension policy will be developed as a result of the proposals submited by various applicants. ) 7 . 03 Construction Timetable. Grantee ' s construction timetable (submitted in conjunction with a map for the initial service area and made a part of this Franchise) reflects the method and schedule of construction of the System. The plan of Grantee will reflect the following: A. Within 90 days of the granting of the Franchise, Grantee shall apply for all necessary governmental permits, licenses, certificates and authorizations. B. A significant amount of construction shall be completed within one year after Grantee ' s receipt of all necessary governmental permits, licenses, certificates and authorizations or completed within 2 years of MCCB certificate of confirmation . C. The time periods described in this section may be extended by City in the event of an act of God. D. Grantee shall begin to offer Basic Sugscriber Television and .aio se vice w' ' in . e (1) year after th effecti ,: date .f his Fra,chise At l:a . percen ( :0%) .f he pl .nneg capit. l invest en shad •e committed eac• y-. . . e ser i.e is re• ired to .e provid•d to all -siden ithin he initi . -ry ce area . sta da d ' stal' ation char•- : with t o yea from the d. of approval of t e Board certifi.a ion. 7.04 Construction Delay. The Grantee shall notify City of any delay in the construction of the System. -19- 7.05 Construction Codes. Grantee shall strictly adhere to all building and zoning codes currently or hereafter in force in City. Grantee shall arrange its lines, cables and other appurtenances, on both public and private property, in such a manner as to cause no unreasonable interference with the use of said public or private property by any person. In the event of such interference, City may require the removal of Grantee ' s lines, cables and appurtenances from the property in question. 7.06 Repair of Streets. Any and all streets which are disturbed or damaged during the construction, operation, maintenance or reconstruction of the System shall be promptly repaired by Grantee, at its expense and to the satisfaction of City. 7.07 Erection of Poles Prohibited. Grantee shall not erect, for any reason, any pole on or along any street in an existing aerial utility system. If additional poles in an existing aerial route are required, Grantee shall negotiate with the utility for the installation of the needed poles. Any such addition shall require the advance written approval of City. Grantee shall negotiate the lease of pole space and facilities from the existing pole owners for all aerial construction, under mutually acceptable terms and conditions. City shall utilize its best offices to assist in arriving at equitable pole rental agreement. 7 . @8 Undergrounding of Cable. Cables shall be installed underground at Grantee ' s cost where all other existing utilities are already underground. Previously installed aerial cable shall be undergrounded in concert, and on a cost-sharing basis, with other utilities, when such other utilities may convert from aerial to underground construction. The City shall notify Grantee of all pending changes from aerial to underground utility installations. -20- 7.09 Reservations of Street Rights. Nothing in this Franchise shall be construed to prevent City from constructing sewers , grading, paving, repairing and/or altering any street, or laying down, repairing or removing water mains or constructing or establishing any other public work. All such work shall be done, insofar as practicable, in such manner as not to obstruct, injure or prevent the free use and operation of the poles, wires, conduits, conductors, pipes or appurtenances of Grantee. If any such property of Grantee herein shall interfere with the construction or repair of any street or public improvement, whether it be construction, repair or removal of a sewer or water main, the improvement of a street or any other public improvement, all such poles, wires, conduits or other appliances and facilities shall be removed or replaced in such manner as shall be directed by the City so that the same shall not interfere with the said public work of the City, and such removal or replacement shall be at the expense of Grantee herein. 7.10 Trimming of Trees. Nothing contained in this franchise shall be deemed to empower or authorize Grantee to cut or trim any trees, ornamental or otherwise, in any of the streets, alleys or public highways, but Grantee may cut or trim trees as necessary only pursuant to a prior agreement with the owner of property which is adjacent to the street area in which such tree stands. 7.11 Street Vacation or Abandonment. In the event any street or portion thereof used by Grantee shall be vacated by City or the use thereof discontinued by Grantee, during the term of this Franchise, Grantee shall forthwith remove its facilities therefrom unless specifically permitted to continue the same, and on the removal thereof restore, repair or reconstruct the street area where such removal has occurred, and place the street area where such removal has occurred -21- in such condition as may be required by City. In the event of failure, neglect or refusal of Grantee, after thirty days' notice by City to repair, improve or maintain such street portion, City may do such work or cause it to be done, and the cost thereof as found and declared by City shall be paid by Grantee as directed by City and collection may be made by Court action or otherwise. 7.12 Movement of Facilities. In the event it is necessary temporarily to move or remove any of Grantee' s wires, cables, poles, or other facilities placed pursuant to the franchise, in order lawfully to move a large object, vehicle, building or other structure over the streets of City, Grantee, upon reasonable notice, shall move at the expense of the person requesting the temporary removal such of his facilities as may be required to facilitate such movements. -22- SECTION 8: OPERATION AND MAINTENANCE 8.01 Open Books and Records. Grantee shall maintain an office within the City and manage all of its operations in accordance with a policy of totally open books and records. City shall have the right to inspect, upon notice, at any time during normal business hours all books, records, maps, plans, income tax returns, financial statements, service complaint logs, performance test results, record of requests for service and other like materials of Grantee which relate to the operation of this Franchise. Access to the aforementioned records shall not be denied by Grantee on the basis that said records contain "proprietary" information. 8.02 Communications with Regulatory Agencies. Copies of all petitions, applications, communications and reports submitted by Grantee to the Board, FCC, Securities and Exchange Commission or any other Federal or State regulatory commission or agency having jurisdiction in respect to any matters affecting cable communications systems operations authorized pursuant to this Franchise shall also be submitted simultaneously to City. Copies of responses from the regulatory agencies to Grantee shall likewise be furnished simultaneously to City. 8.03 Annual Reports. A. Grantee shall file with City, at the time of its annual payment of the franchise fee, as described in this Franchise, the following: (1 ) A financial statement prepared by an independent certified public accountant, showing, in such detail as acceptable to City, the gross operating revenues of Grantee for the preceding fiscal year. (2) Current list of names and addresses of each officer and director and other management personnel , as well as each shareholder having stock ownership of three percent (3%) or more. -23- (3) A copy of each document filed with all federal , state and local agencies during the preceding fiscal year and not previously filed with City, (each of these filings shall be provided at the time the filing is made) . (4) A statement of its current billing practices. (5) A current copy of its rules. (6) A current copy of its subscriber service contract. B. City and its agents and representatives shall have authority to arrange for and conduct an audit of and copy the books and records of Grantee. Grantee shall first be given forty-eight (48) hours notice of the audit request, the description of and purpose for the audit and description, to the best of City's ability, of the books, records and documents it wants to review. 8.04 Monitoring and Compliance Reports. No later than April 15 of each year, Grantee shall provide a written report of the FCC performance tests for the Home Subscriber Network required in Part 76, Section 76.601 of FCC Rules and Regulations. In addition, Grantee shall provide for City, in accordance with Section 5.07, reports of the tests and compliance procedures established by this Franchise, no later than 10 days after the completion of each series of tests. 8.05 Additional Reports. Grantee shall prepare and furnish to City, at the times and in the form prescribed, such additional reports with respect to its operation, affairs, transactions or property, which in the sole discretion of the City are necessary. 8.06 Maintenance and Complaints. A. Grantee shall maintain an office within the City,:, re§44-atar-y_t.erritor Y which shall be open during all usual business hours, have a publicly listed -24- toll -free telephone, and be so operated as to receive subscriber complaints and requests for repairs or adjustments on a 24-hour-a-day, 1-day-a-week basis . A written log shall be maintained listing all complaints and their dispositions. B. Grantee shall render efficient service, make repairs promptly and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during period of minimum use of the System. A written log shall be maintained for all service interruptions. C. Grantee shall maintain a repair force of technicians that shall respond to subscriber complaints or requests for service within 24 hours after receipt of the complaint or request. All complaints shall be resolved within seven days, to the extent reasonable. No charge shall be made to the subscriber for this service and subscriber' s account shall be credited if without service for any reason for a period exceedingy 7 L seventY-�+t (A) hours. D. City shall ensure that all subscribers, programmers and members of the general pudic have recourse to a public hearing, before the City, of any complaints , where there is evidence that Grantee has not settled the complaint to the satisfaction of the person initiating the complaint. 8.07 Safety. A. Grantee shall at all times employ the standard of care attendant to the risks involved and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injury or nuisance to the public or to employees of Grantee. -25- B. Grantee shall install and maintain its wires, cables, fixtures and other equipment in accordance with the requirements of the National Electric Safety Code, and in such manner that they will not interfere with any installa- tions of City or any public utility. C. All lines, equipment and connections in, over, under and upon the streets and private property within the City, wherever situated or located, shall at all times be kept and maintained in a safe and suitable condition `..— and in good order and repair. 8.08 Service Contract. A. Grantee shall receive approval from City of the form and content of the service contract to be used by Grantee prior to entering into any such service contracts with subscribers, and the Grantee shall make no changes in the approved service contract without prior approval of City. The service contract shall include, at a minimum, a schedule of all rates and charges, description of services, instructions on the use of the System, billing and '�-- collection practices. B. The service contract shall further contain a statement as follows: Grantee shall not, as to rates, charges, service facilities, rules, regulations or in any other respect, make or grant any preference or advantage to any person, nor subject any person to any prejudice or disadvantage. C. Grantee shall have authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable Grantee to exercise its rights and -26- perform its obligations under this Franchise and to assure an uninterrupted service to each and all of its subscribers; provided such rules, regulations, terms and conditions shall not be in conflict with the provisions of the Franchise, ordinances of City, and laws of the State of Minnesota or the United States. D. Each subscriber shall be provided with instructions on filing complaints or otherwise obtaining information or assistance from Grantee. E. All items described in this section shall be provided to each new subscriber at the time a contract is entered or service begun, and to all existing subscribers not less than once each year. F. The term of a subscriber contract shall not be for more than twelve (12) months duration unless after twelve (12) months the contract may be terminated by the subscriber at his option at any time, with no penalty to subscriber. Nothing in this paragraph shall exclude Grantee from entering into subscriber contracts, by reason of a line extension policy, fur a term longer than twelve (12) months . ' 8.09 Subscriber Practices. A. There shall be no charge for disconnection of any installation or outlet. If any subscriber fails to pay a properly due monthly subscriber fee, or any other properly due fee or charge, Grantee may disconnect the subscriber's service outlet, provided, however, that such disconnection shall not be effected until after the later of (i ) sixty (60) days after the due date of said delinquent fee or charge or (ii ) ten (10) days after delivery to subscriber of written notice of the intent to disconnect. If a subscriber pays before expiration of the later of (i) or (ii ), Grantee shall not disconnect. After disconnection, upon payment in full of the delinquent fee or charge and the payment of a reconnection charge, Grantee shall promptly reinstate the subscriber' s cable service. -27- B. Refunds to subscribers shall be made or determined in the following manner: (1) If Grantee fails, upon request by a subscriber, to provide any service then being offered, Grantee shall promptly refund all deposits or advance charges paid for the service in question by said subscriber. This provision does not alter Grantee's responsibil- ity to subscribers under any separate contractual agreement or relieve Grantee of any other liability. (2) If any subscriber terminates any monthly service because of failure of Grantee to render the service in accordance with this Franchise, Grantee shall refund to such subscriber the propor- tionate share of the charges paid by the subscriber for the services not received . This provision does not relieve Grantee of liability established in other provisions of this Franchise. C. If any subscriber terminates any monthly service prior to `-- the end of a prepaid period, a proportionate portion of any prepaid subscriber service fee, using the number of days as a basis, shall be refunded to the subscriber by Grantee. D. Continued failure by Grantee to provide services proposed by it may, in the discretion of the City, be cause for imposition of a penalty or termination of this Franchise. 8.10 Rates and Other Charges. (Note: It is intended this Section will be completed based on the proposal of Grantee. ) A. Rates and charges charged by Grantee for monthly service and installation and other charges hereunder shall be uniform, fair -28- and reasonable and designed to meet all necessary costs of service, including a fair rate of return on the original cost, less deprecia- tion, of the properties devoted to such service (without regard to any subsequent sale or transfer price or cost of such properties). B. The maximum rate for the first two (2) years after date of 0initia1service, as determined by City, shall be as follows: ` ) 1) Installation (a) Additional Installation for one subscriber. (b) Multiple Buildings (c) Commercial Buildings (d) Non-Profit or Public Buildings (e) Other (NOTE: Grantee shall include rates for drops or installations in excess of 150 feet. Otherwise, the charges shall be for that distance. ) 2) Converter Rental 3) Converter Deposit 4) Basic Monthly Service 5) Lockout Device 6) Other C. Notwithstanding the previous paragraph, Grantee may offer both its initial and additional installation services to subscribers at uniformly applied reduced rates. -29- D. Service requests for maintenance or repair of the System shall be performed at no charge to a subscriber. If such maintenance or repair is required as a result of damage caused by subscriber, Grantee may charge a maximum of Dollars ($ ) for service calls to subscribers ' homes. 8 . 11 Rate Changes. A change in any rate, when not inconsistent with applicable requirements of the FCC, the Board, or other lawful authority, may be initiated by Grantor or Grantee. Any such rate change shall be subject to approval by Grantor in accordance with the provisions of this section and the following paragraphs: A. No rate change may be made without approval by majority vote of the City Council of City. B. No rate change shall be approved that would result in different rates or charges for service to similarly situated subscribers in the rate territory in the sole opinion of City. C. No rate or chargechange will be approved unless all of the standards and prerequisites for review have been met and complied with and determinations have been made, all pursuant to this section. j` D. The standards for reviewing a proposed rate change will include at least the following except when the change is required by Grantee by FCC or Board action and further review is not deemed applicable by City. 1) The ability of Grantee to render System Services and to derive a reasonable profit therefrom under the existing rate schedule and proposed rate schedule; 2) The revenues and profits derived from System services; 3) The efficiency of Grantee; 4) The quality of the service offered by Grantee; 5) The original cost of the System, less depreciation; 6) A fair rate of return with respect to investments having similar risks to that of providing cable communication services. -30- 7) The extent to which Grantee has adhered to the terms of this Franchise; 8) Fairness to residents and subscribers; 9) Capital expenditures by Grantee in providing updated technology and service to subscribers; 10) Such other factors as City may deem relevant. �H, �� fay r \% E. No rate increase request shall be approved untilAcom— �,. pletion of construction of the initial service area. F. The procedures to be followed in changing a rate or charge shall include at least the following: 1) An application for a rate change will be submitted to City and a copy filed with the Board. 2) The application shall be supported by statistical and other proof indicating that the existing rate or charge is inadequate and unreasonable and that the proposed increases are required to enable the Grantee to render service to fulfill its obligations under this Franchise and to derive a reasonable profit therefrom. 3) The application shall include current information and financial information with at least the following: a. Balance Sheet; b. Income Statement; c. Statement of sources and applications of funds; d. Detailed supporting schedules of expenses, income, assets and other items as may be required by City; e. Statement of current and projected subscribers; -31- f. A current list of rates and charges of Grantee applic- able to its Systems, or owned or operated by its parent corpora- tion or other subsidiaries or affiliates of its parent corpora- tion. g. A current list of rates and charges for other systems in the seven county metropolitan area. 4) City will notify the Grantee and the Board and schedule a public hearing on the request within two (2) weeks from the date of receipt of the application and the determination by City of its completeness. Grantee will notify the public through providing notice for one (1) week, each day between 7:00 p.m. and 9:00 p.m. on two (2) channels of the date, place and time of the hearing. City will publish notice ten (10) days prior to hearing in its official newspaper. Tour &r.5 rnortin s 5) After closing the public hearing, City will have i J ,\ �.. r,n,e (31t days within which to make its determination. Any approved change in rates or charges shall become effective upon the date determined by City. 6) If City fails to approve the requested change of rates U r (4� rY114) or charges within the period, Grantee may appeal pursuant to the then applicable procedures of the Board. G. City may utilize a rate consultant to advise it on proposed rate changes and to assist it in maintaining uniform rates within the rate territory. A rate consultant may be any person who has sufficient background and experience, in the sole opinion of City, to properly evaluate and analyze rates and charges. -32- H. All costs for the review of an application for a rate or charge change shall be paid by Grantee upon demand of City. The cost shall include, but not be limited to, attorneys' fees, and the reasonable value of services (as determined by City) rendered by City or any of City's employees, agents or representatives. I. Any time limit may be waived only if City and Grantee consent. 8.12 Periodic Reviews and Renegotiation. The field of cable communications is a relatively new and rapidly changing one which shall , no doubt, see many regulatory, technical , financial , marketing and legal changes during the term of this Franchise. Therefore, in order to provide for a maximum degree of flexibility in this Franchise, and to help achieve a continued advanced and modern system, the following renegotiation provisions will apply: A. City reserves the right to adopt rules and regulations controlling the procedures and subjects for periodic reviews and renegotiation. In the absence of any City action taken to exercise these rights, Grantee shall be subject to at least the procedures and subjects described in w this section. B. City may require, at its sole discretion, System performance evaluation sessions at any time during the term of this Franchise or as required by federal or state law. Such evaluation sessions shall be conducted by City at a minimum, at intervals of less than five (5) years beginning date of the effective date of acceptance of this Franchise by Grantee. C. All evaluation sessions shall be open to the public and notice of sessions published in the same way as a legal notice. Grantee shall -33- notify its subscribers of all evaluation sessions by announcement on at least two channels of the System between the hours of 7:00 p.m. and 9:00 p.m. for five consecutive days preceding each session. D. Topics which may be discussed at any evaluation session may include, but not be limited to, service rate structures, franchise fee, penalties, free or discounted services, application of new technologies, system performance, services provided, programming offered, community access, local origination, customer complaints, privacy, amendments to this Franchise, judicial , Board and FCC ruling, line extension policies and Grantee or City rules. E. During a review and evaluation by City, Grantee shall fully cooperate with City and shall provide without cost such information and documents as City may request to rea�nably perform the service. F. If at any time during its review, City determines that reasonable evidence exists of inadequate System performance, it may require Grantee to perform tests and analyses directed toward such suspected inadequacies at the Grantee's own expense. Grantee shall fully cooperate with City in performing such testing and shall prepare results and a report, if requested, within 30 days after notice. The report prepared by Grantee shall include at least: 1) A description of the problem in System performance which precipitated the special tests. 2) What System component was tested. 3) The equipment used and procedures employed in testing. 4) The method, if any, by which such System performance problem was resolved. -34- 5) Any other information pertinent to said tests and analyses which may be required by City, or determined when the test is performed. City may require that tests be supervised at Grantee' s expense by a consultant designated by City. The consultant shall sign all records of special tests and forward to City such records with a report inter- preting the results of the tests and recommending actions to be taken. G. As a result of a periodic review or evaluation session, City may require Grantee to modify the System or to provide additional services. Grantee will comply with any such requirement of the City unless, in the sole opinion of City, technology does not permit it, or Grantee establishes to the satisfaction of City that the cost would prohibit the implementation of the modification or the additional services. H. As a result of a periodic review or evaluation session, Grantor may require Grantee to modify the System or to provide additional services. Grantee will comply with V any such requirement of the Grantor unless, in the sole - opinion of Grantor, technology does not permit it, or Grantee establishes to the satisfaction of Grantor that the cost would prohibit the implementation of the modi- fication or the additional services. 0.1.3 rcerunas to JUDscrloers ana Nrogrammers . A. If Grantee fails to provide any service requested by a subscriber or programmer, Grantee shall , after adequate notification and being afforded the opportunity to provide the service, promptly refund all deposits or advance charges paid for the service in question by said subscriber or programmer. B. If any subscriber terminates any monthly service during the first twelve (12) months of said service because of the failure of Grantee to render the service in accordance with the standards set forth in this permit, Grantee shall refund to such subscriber an amount equal to the installation or reconnection charges paid by the subscriber multi- plied by the fraction of the twelve (12) month period for which the subscriber will not be receiving service. In the event that said subscriber has made an annual payment in advance, a similar portion of said payment shall be refunded by Grantee. C. If any subscriber terminates, for personal reasons, any monthly service prior to the end of a prepaid period, a prorated portion of any prepaid subscriber service fee, using the number of days as a basis, shall be refunded to the subscriber by Grantee. - 3k. ('• H 4 C©m run In accordance with Minnesota law, an independent non- profit corporation, termed the Community Access Corporation (CAC) , shall be formed to manage the use of public access and other community channels of the System. City shall include no less than seven (7) persons with broad repre- sentation of the City ' s educational , cultural , social , community and business organizations . Not less than one (1) of Grantee ' s representatives shall be included on the initial Board of Directors . The CAC Board of Directors shall , within sixty (60) days of incorporation and appointment by City, submit to City a plan and rules for the management, operation and use of public access and community channels. e i 5 L+ z- er ' 5 r'lv; 50r.� Com The Ci" m1 cr ✓ cJc (Ad Sor` C fi��L Wh,C n wF I I firer r� G � z�r 'S � ��M. f I 1 + v,. �fiU» cwo s -11,5 rerdrt-3 OC +11G • C)Vt 5 V t Irl (TV-, o 't�•f�. 1 i U�'1 if mA, et ovn Le c�T I I'�.. "(�S7LM� Thi 5 �U [ I rU�ure u,,cf cc poS, hb" Cp(�mm tee L+ t J 44^ C Gti Se. 5t,� I I be c(e-Eer�r;n e �{ b1 17 bc'C ome5 1--ec'fi v'! —3 ‘) L.-" • SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS 9.01 Payment to City. A. As compensation for the Franchise to be granted, and in consider- ation of permission to use the streets and public way of the City for the construction, operation, maintenance and reconstruction of a System within the City, and to defray the costs of franchise regulation, Grantee shall pay to City an annual amount equal to five percent (5%) of Grantee's Gross Annual Revenues. B. Payments due City under this provision shall be computed t{udrLerly, 1-he, end Of 2ti CGt //nag K- e-a� r �Dr iff CAIS l.4r ng quarter, as of March 31, June 33U, Setember _30 and 0ec-ember 31. . - e.. - • .. • - shall be due and payable no later than thirty (30) days after the dates listed in the previous sentence. Each payment shall be accompanied by a brief report showing the basis for the computation and such other relevant facts as may be required by City. C. No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such accep- tance of payment be construed as a release of any claim City may have for further or additional sums payable under the provisions of this permit. All amounts paid shall be subject to audit and recomputation by City. D. Following the issuance and acceptance of the Franchise, Grantee shall initiate franchise fee payments to City at the minimum amount of $ �, 500. 00 per year payable in y installments. These payments are to be considered advances of payments due in later years of the Franchise inasmuch as they exceed the actual franchise payments due during any year. E. Franchise fees received by City shall be used for cable communications system related services only, including regulation and administration and for access programming and services related to providing for it. -37- . 02 Security Fund. A. Within thirty (30) days after the effective date of the: Franchise, Grantee shall deposit into a bank account es- tablished by City and maintain on deposit through the term of this Franchise, the sum of $10, 000 . 00 as security for the faithful performance by it of all the provisions of this Franchise, and compliance with all orders, permits and directions of City, and the payment by Grantee of any claim, liens and taxes due City which arise by reason of the construction, operaticn or maintenance of the system. Interest accrued on this deposit shall remain with the deposit as additional security unless after periodic review City determines , in its sole discretion, to rebate all or part of the accrued interest or to reduce the required amount of the security fund. Provision shall be made to permit the administrator designated in this Franchise to withdraw funds from the security fund. Grantee shall not use the security fund for other_purposes and shall not assign, pledge or otherwise use this security fund as security for anypurpo9e. B. Within thirty (30) days after notice to it that any amount has been withdrawn by City from the security fund pursuant to subdivision (A) of this section, Grantee shall deposit a sum of money sufficient to restore such security fund to the original amount. C. If Grantee fails, after ten (10) days notice, to pay to City any taxes due and unpaid; or, fails to repay to City, within such ten (10) days, any damages, costs or expenses which City shall be compelled to pay by reason of any act or default of the Company in connection with this Franchise; or fails, after thirty (30) days notice of such failure by City, to comply with any provision of the Franchise which City reasonably determines can be remedied by an expenditure of the security, City may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal , City shall notify Grantee of the amount and date thereof. �R- 9 . 03 Penalties from Security Fund . In addition to recovery of any mbnies owed by Grantee to City or damages as a result of any acts or omissions by Grantee pursuant to the Franchise, City or its delegation may charge to and collect from the Security Fund the following penalties: A._ For failure to complete System construction in accordance with Grantee ' s initial service area plan, unless City approves the delay, the penalty shall be $100 . 00 and/or four (4) days decrease in franchise term per day for each day, or part thereof, such failure occurs or continues . B. For failure to provide data, documents, reports or infor- mation or to cooperate with City during an application process or System review, the penalty shall be $25 . 00 and/or one (1) day decrease in franchise term per day for each day, or part thereof , such failure occurs or continues. C. For failure to comply with any of the provisions of this Franchise for which a penalty is not otherwise specifically provided pursuant to this Section, the penalty shall be $25 . 00 and/or one (1) day decrease in franchise term per day for each day, or part thereof, that such failure occurs or continues . D. For failure to test, analyze and report on the performance of the System following a request by City, the penalty shall be $25. 00 and/or one (1) day decrease in franchise term per day for each day, or part thereof , that such failure occurs or continues. E. t 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 $25 . 00 and/or one (1) day decrease in franchise term per day for each day or part thereof that such failure occurs or continues . F. 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 $100 . 00 and/or four (4) days decrease in franchise term per day for each day, or part thereof , that such failure occurs or continues. G. For failure to provide the services Grantee has proposed, including but not limited to the implementation and the utili- zation of the access channels and the making available for use of the equipment and other facilities to the public, the penalty shall be $100 . 00 and/or four (4) days decrease in franchise term per day for each day, or part thereof, that such failure occurs or continues. H. Each violation of any provision of this Franchise shall be considered a separate violation for which a separate penalty can be imposed. 9.04 Relation to Other Penalties. Exclusive of the contractual penalties set out above in this section, a violation of any provision of this Franchise is a misdemeanor and is enforceable by City. 9.05 Procedure. 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 Security Fund all penalties and other monies due City. In the event that 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. t A. City shall hear Grantee' s dispute at its regularly scheduled meeting. City shall supplement the decision with written findings of fact. B. Upon a determination by City that no violation has taken place, City shall refund to Grantee without interest all monies drawn from the Security Fund by reason of the alleged violation, less all costs of Grantee's appeal . C. The Security Fund deposited pursuant to this Section shall become the property of City in the event that the Franchise is cancelled by reason of the default of Grantee or revoked for cause. Grantee, however, shall be entitled to the return of such Security Fund, or portion thereof, as remains on deposit at the expiration of the term of the Franchise, or upon termination of the Franchise at an earlier date, provided that there is then no outstanding default on the part of Grantee. D. The rights reserved to City with respect to the Security Fund are in addition to all other rights of City, whether reserved by this Franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such Security Fund shall affect any other right City may have. E. City reserves the right, in its sole discretion, to reward Grantee for prompt and good performance in the construction of and maintenance and operation of the System. City may rebate to Grantee all or any portion of accrued interest in the Security Fulid because of early completion of the construction of the System and for such other reasons as may be determined, based on the periodic evaluation specified in this Franchise or at any time determined by City. 9 . 06 Bonds. A. At the commencement of this Franchise, and at all times thereafter until Grantee has completed construction, Grantee shall maintain with City a construction bond to secure completing of construction in the sum of 125% of the construction cost in such form and with such sureties as shall be acceptable to City, con— ditioned upon the faithful performance by Grantee of this Franchise and said bond may be reduced from time to time by City as construction is completed. Further, Grantee shall maintain, throughout the term of this Franchise, a performance bond with City in the amount of 10% of the construction cost in such form and with 1 such sureties as shall be acceptable to City and con— ditioned upon the faithful performance by Grantee of this Franchise. . . may, B. The rights reserved by City with respect to the bond are in addition to all other rights the City may have under this Franchise or any other law. C. City may, in its sole discretion, reduce the amount of the bond. 9.07 Damages and Defense. A. Grantee shall hold harmless City for all damages and penalties as a result of the exercise of this Franchise. These damages and penalties shall include, but shall not be limited to, damages arising out of copyright infringement, defamation and all other damages arising out of the construc- tion, operation, maintenance or reconstruction of the System authorized herein, whether or not any act or omission complained of is authorized, allowed or prohibited by this Franchise. -42- B. Grantee shall pay all expenses incurred by City in defending itself with regard to all damages and penalties mentioned in section (A) above. These expenses shall include all out-of-pocket expenses, such as attorney fees, and shall also include the reasonable value of any services rendered by any employees of City. 9.08 Liability Insurance and Indemnification. A. Grantee shall maintain, throughout the term of this Franchise, liability insurance insuring both Grantee and City and City's delegations with regard to all damages mentioned in subsection A of the Section entitled "Damages and Defense" above, in the minimum amounts of: 300, 0:..)3 for bodily injury or death to any one person; for bodily injury or death resulting from any one accident; 200 c(,-) for property damage resulting from any one accident; for all other types of liability. B. Upon the effective date of this Franchise, Grantee shall furnish proof to City that a satisfactory insurance policy has been obtained. Said insurance policy shall be approved by City and such insurance policy, along with written evidence of payment of required premiums, shall be filed and maintained with City. -43- SECTION 10. REVOCATION. 10.01 City' s Right to Revoke. In addition to any rights set out elsewhere in this Franchise, City reserves the right to revoke this Franchise, and all rights and privileges pertaining thereto, in the event that: A. Grantee substantially violates any provision of this Franchise; or B. Grantee attempts to evade any of the provisions of the Franchise; or C. Grantee practices any fraud or deceit upon the franchising authority; or D. Grantee ' s construction schedule is delayed for over )0 months; or E. Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt; or F. Grantee fails to receive a certificate of compliance from the Board within two years after the Franchise award. 10.02 Procedures. A. City shall provide Grantee with a written notice of the cause for termination and the intent to terminate and shall allow Grantee thirty (30) days subsequent to receipt of the notice in which to correct the violation. B. Grantee shall be provided the right to a public hearing before City. C. Upon termination, Grantee shall have a period of thirty (30) days subsequent to the date of the public hearing at which termination of the Franchise is considered, within which to file an appeal with the Board. -44- D. During the appeal period, the Franchise shall remain in full force and effect. E. The above procedure is subject to the current procedure for revocation as established by the Board. -45- SECTION 11. FORECLOSURE, RECEIVERSHIP AND ABANDONMENT 11.01 Foreclosure. Upon the foreclosure or other judicial sale of all or a part of the System, or upon the termination of any lease covering all or part of the System, Grantee shall notify City of such fact and such notification shall be treated as a notification that a change in control of Grantee has taken place, and the provisions of this Franchise governing the consent to transfer or change in ownership shall apply without regard to how such transfer or change in ownership occurred. 11.02 Receivership. City shall have the right to cancel this Franchise one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of Grantee, whether in receivership, reorganiza- t tion, bankruptcy or other action or proceeding, unless such receivership or trustee- ship shall have been vacated prior to the expiration of said one hundred twenty (120) days, or unless: A. Within one hundred twenty (120) days after his election or appointment, such receiver or trustee shall have fully complied with all the provisions of this Franchise and remedied all defaults thereunder; and, B. Such receiver or trustee, within said one hundred twenty (120) days, shall have executed an agreement, duly approved by the Court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this Franchise. 11.03 Abandonment. Grantee may not abandon any portion of the System without having given three (3) months prior written notice to City and the Board. Further, Grantee may not abandon any portion of the System without compensating City for damages resulting from the abandonment. The amount of damages resulting from abandonment shall be determined by City. -46- SECTION 12. PURCHASE OF SYSTEM 12.01 City' s Right to Purchase System. A. If at any time Grantee receives a bona fide purchase offer for the System, a complete copy of such offer shall promptly be given to City and City, or its delegations, shall have the right to purchase the System according to the terms of that offer. City shall exercise such right by submitting to Grantee, within six (6) months after City' s actual receipt of the bona fide offer, notice that City, or its delegations, desires to purchase the System pursuant to said offer. If City exercises such right, the System shall be sold to City pursuant to such offer. If City does not exercise such right, the System may be sold but only on the terms submitted to City. If any changes are made in the purchase offer given to City, such purchase offer, as so changed, shall again be given to City and City shall have six (6) months from actual receipt by City of the offer, as changed, within which to exercise its right to purchase the System pursuant to the offer, as changed, all as above provided. If City does not exercise its right to purchase the System pursuant to any offer given to City pursuant to this paragraph, and the System is not sold to the buyer and on the terms set out in the offer given to City, then the right of City to purchase the System shall continue, and all subsequent purchase offers shall be given to City pursuant to this paragraph. Also, the City' s right to purchase pursuant to this paragraph shall survive every sale to a buyer and shall continue and be binding upon every buyer of the System. 12.02 Procedures. In the event City elects to exercise its right to purchase the System as provided in Section, the following shall then apply: -47- A. City and Grantee shall negotiate all terms and conditions of the purchase of the System. B. If City and Grantee cannot agree upon the terms and conditions of the purchase, City shall have the right to proceed to arbitration. Arbitra- tion shall commence and proceed according to applicable Minnesota law except as follows: 1) The parties shall , within fifteen (15) days of City's decision to proceed to arbitration, appoint one arbitrator each who is experienced and knowledgeable in the purchase and valuation of business property. Arbitrators shall each agree upon the selection of a third arbitrator, similarly qualified, within fifteen (15) days after appointment of second arbitrator. 2) Within thirty (30) days after appointment of all arbitrators and upon ten (10) days written notice to parties, the arbitrators shall commence a hearing on the terms and conditions of the purchase in dispute. 3) The hearing shall be recorded and may be transcribed at the request of either party. All hearing proceedings, debates and deliberations shall be open to the public and at such times and places as contained in the notice or as thereafter publicly stated in the order to adjourn. 4) The arbitration panel shall be required to determine the purchase price of the System according to the standards established in paragraph C below. 5) At the close of the hearings and witkin thirty (30) days, the arbitrators shall prepare written findings and make a written decision agreed upon by a majority of the arbitrators which shall be served by mail upon City and Grantee. -48- 6) The decision of a majority of the arbitrators shall be binding upon both parties except that City may, in its sole discretion and without any penalty or cost to City of any kind, withdraw its offer to purchase within ninety (90) days of receipt of the final decision of a majority of the arbitrators. 7) Either party may seek judicial relief to the extent authorized under Minnesota Statutes, M.S.A. 572.09 and 572.19 as the same may be amended, and, in addition, under the following circumstances: (a) A party fails to select an arbitrator; (b) The arbitrators fail to select a third arbitrator; (c) One or more arbitrator is unqualified; (d) Designated time limits have been exceeded; (e) The arbitrators have not proceeded expeditiously; or (f) Based upon the record, the arbitrators abused their discre- tion. �.. 8) In the event a Court of competent jurisdiction determines the arbitrators have abused their discretion, it may order the arbitration procedure repeated and issue findings, orders and directions, with costs • of suit to be awarded to the prevailing party. 9) Cost of arbitration shall be borne equally. C. The purchase price of the System to be paid by City shall be the [ as -s-h ooks arid--- r o tie-) or HraLket . - • ' . - • - ... ^ . 11 sha-ll__not be inc,-luded-in--the purchase -price of- -e—System.-j- fair market value of the System including both tangible and intangible assets . D. Grantee expressly waives its rights, if any, to relocation costs that might otherwise be provided by law. E. The date of valuation shall be no earlier than the day following the date of revocation, forfeiture, expiration or termination of this Franchise and no later than the date City makes a written offer for the System. F. City may upon the payment of a fair valuation purchase take over and hold the property and plant of Grantee in whole or' in part if such purchase or taking over be upon revocation of the Franchise. Such valuation shall not include any sum for the value of the Franchise and such plant and property shall be valued according to its book value of initial cost less depreciation and salvage. Should the state of Minnesota, the Board, the FCC, or any other agency of the Federal government subsequently require Grantee to perform or cease to perform any act which is inconsistent with any provision of this Franchise, Grantee shall so notify City. Upon receipt of such notifi- cation , City shall determine if a material provision of the Franchise is affected . Upon such determination City shall have the right to modify or amend any of the sections of this Franchise to such reasonable extent as may be necessary to carry out the full intent and purpose of this Franchise. City may terminate the Franchise in the event City deter- mines that substantial and material compliance with the original proposed terms of this Franchise has been frus- trated by such State or Federal requirements . In the event City purchases the System from Grantee by reason of the provisions contained in the paragraph, the procedures described in the paragraphs 12 . 02 above shall apply. -.S (>- SECTION 13. RIGHTS OF INDIVIDUALS PROTECTED 13.01 Discriminatory Pratices Prohibited. Grantee shall not deny service, deny access, or otherwise discriminate against subscribers, programmers or general citizens on the basis of race, color, religion, national origin, sex or age. Grantee shall strictly adhere to the equal employment opportunity requirements of the Board as expressed in 4 MCAR Sec. 4.108 and of the Federal Government, as expressed in 47 CFR Sec. 76.13(a) (8) and Sec. 76.311. Grantee shall comply at all times with all other applicable, federal , state and city laws, and all executive and administrative orders relating to non-discrimination. 13.02 Cable Tapping Prohibited. Neither Grantee nor any other person, agency or entity shall tap, or arrange for the tapping, of any cable, line, signal input device or subscriber outlet or receiver for any purpose whatsoever. 13.03 Privacy and Other Human Rights . Granteee and City shall maintain constant vigilance with regard to possible abuses of the right of privacy or other human rights of any subscriber, programmer or general citizen resulting from any device or signal associated with the System. Grantee shall not place in any private residence any equipment capable of two-way communications without the written consent of the residents, and will not utilize the two-way communications capability of the System for unauthorized subscriber surveillance of any kind. 13.04 Permission of Property Owner Required. No cable, line, wire, amplifier, converter or other piece of equipment owned by Grantee shall be installed by Grantee without first securing the written permission of the owner of any property involved. If such permission is later revoked, whether by the original or a subsequent owner, Grantee shall remove forthwith any of its equipment which is both visible and movable and promptly restore the property to its original condition. -51- 13.05 Sale of Subscriber Lists Prohibited. Grantee shall not sell , or otherwise make available, lists of the names and addresses of any of its ' subscribers, or any list which identifies, by name, subscriber viewing habits, e to any person, agency or entity, for any purpose whatsoever, without the specific permission of such subscriber. i 13.06 Penalty for Failure to Comply with Section O' Provisions. In addition to such penalties provided by all other applicable federal , state i) and city laws, failure to comply with Section 14 provisions will subject 4. 03 Grantee to penalty provided in Section 14143, Subdivision C of this Franchise. -52- SECTION 14. MISCELLANEOUS PROVISIONS 14.01 Compliance with Laws. Grantee shall comply with all the state laws and rules regarding cable communications not later than one year after they become effective, unless otherwise stated. Grantee shall comply with all federal laws and regulations regarding cable communications as they become effective. Grantee shall also comply with all City ordinances, resolutions, rules and regulations heretofore or hereafter adopted or established during `-' the entire term of the Franchise. 14.02 Sale or Transfer of Franchise. A. This Franchise shall not be sold, assigned or transferred, either in whole or in part, or leased, sublet or mortgaged in any manner, nor shall title thereto, either legal or equitable, on any right, interest or property therein, pass to or vest in any person without full compliance with the procedure set forth in this section. This section shall include sale or transfer of all or a majority of a corporation's assets, merger (including any parent and its subsidiary corporation), consolidation, creation of a subsidiary corporation or sale or transfer of stock in a corporation so as to create a new controlling interest in the System. The term "controlling interest" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. 1) The parties to the sale or transfer of this Franchise shall make a written request to the City for its approval of a sale or transfer of this Franchise. -53- 2) City shall reply in writing within thirty (30) days of the request and shall indicate approval of the request or its deter- mination that a public hearing is necessary due to potential adverse effect on the company's subscribers. 3) If a public hearing is deemed necessary pursuant to (2) above, such hearing shall be conducted within thirty (30) days of such determination and notice of such public hearing shall be given pursuant to Board regulations. 4) Within thirty (30) days after the public hearing, the City shall approve or deny in writing the sale or transfer request. 5) The City shall notify the Board of the transfer of any interest in the System of this Franchise in accordance with the then applicable rules, regulations or laws. The notification shall be accompanied by the written certification of the transferee that it meets all of the requirements with respect to technical ability �.. and financial stability demanded of the original Grantee. 6) Grantee, upon transfer, shall within sixty (60) days thereafter file with the City a copy of the deed, agreement, mortgage, lease or other written instrument evidencing such sale, transfer of ownership or control or lease, certified and sworn to as correct by the Grantee. B. In reviewing a request for sale or transfer pursuant to Section A above, the City may inquire into the qualifications of the prospec- tive controlling party, and Grantee shall assist the City in so inquiring. The City may condition said transfer upon such terms -54- and conditions as it deems appropriate. In the absence of extraordin- ary circumstances, the City shall not approve any transfer or assign- ment of the Franchise prior to substantial completion of construction of the System, as determined solely by the City. In no event shall a transfer or assignment of ownership or control be approved without the transferee becoming a signator to this Franchise. 14.03 Expiration. Upon expiration of the initial term of the Franchise, `-- City shall have the right, at its election, to: A. Renew or extend this Franchise; B. Invite additional franchise applications or proposals; or, C. Terminate this Franchise without further action. Grantee shall make it a conditon of each contract entered into by it that City shall have the right to exercise these options. 14.04 Amendment of Franchise Ordinance. After published notice, public hearings and deliberations of the Council of City, this Franchise may be 41,40 . �-- amended upon auxuu vote of the Council of City and the written consent of Grantee. 14.05 Franchise Renewal . A. Grantee may aply for renewal of this Franchise by making applica- tion to do so not later than twelve (12) months and not earlier than eighteen (18) months prior to the expiration of this Franchise on forms provided by City, and as authorized by City. B. Grantee may be approved, and this Franchise or modification to it may be renewed or extended by City in accordance with the then existing rules of the FCC, the Board, the City and all other applicable laws, ordinances, rules or regulations. -55- C. Nothing in this Franchise shall be construed to require renewal or extension of this Franchise. D. City shall conduct an investigation and evaluation of the Grantee and the System and the renewal proposal . This investigation and evaluation shall be completed by City within six (6) months after receipt of the application and determination by City of its completeness. E. Renewal of this Franchise may not be for more than 15 years, unless otherwise permitted by federal or state law. 14.06 Continuity of Service Mandatory. It shall be the right of all subscribers to receive all available services insofar as their financial and other obligations to the Grantee are honored. In the event that the Grantee elects to overbuild, rebuild, modify or sell the System, or the City revokes or fails to renew the Franchise, Grantee shall do everything in its power to ensure that all subscribers receive continuous, uninterrupted service regardless of the circumstances during the lifetime of the Franchise. In the event of purchase by the City, or a change of Grantee, the current Grantee shall cooperate with City to operate the System for a temporary period, in maintaining continuity of service to all subscribers. 14.07 Removal after Termination or Revocation. A. At the expiration of the term for which this Franchise is granted, or upon its revocation or termination, as provided for herein, City shall have the right to require Grantee to remove, at Grantee's expense, all or any portion of the System from all streets and public property within City. In so removing the System, Grantee shall refill and compact at its own expense, any excavation that shall be made by -56- it and shall' leave all streets and public property in as good a condition as that prevailing prior to Grantee's removal of the System, and without affecting, altering or disturbing in any way electric, telephone or other utility, cables, wires or attachments. City, or its delegation, shall have the right to inspect and approve the condition of such streets and public property after removal . The Security Fund, Bonds, Insurance, Indemnity and Penalty provisions of this Franchise shall remain in full force and effect during the entire term of removal . B. If, in the sole discretion of City, Grantee has failed to continence removal of System, or such part thereof as was designated by City, within thirty (30) days after written notice of City' s demand for removal is given, or if Grantee has failed to complete such removal within one (1) year after written notice of City' s demand for removal is given, City shall have the right to exercise one of the following options: (1 ) Declare all right, title and interest to the System to be in City with all rights of ownership including, but not limited to, the right to operate the System or transfer the System to another for operation by it. (2) Declare the System abandoned and cause the System, or such part thereof as City shall designate, to be removed at no cost to City. The cost of said removal shall be recoverable from the Security Fund, Bonds, Insurance, Indemnification and Penalties provided for in this Franchise, or from Grantee directly as a liquid- ated damage. -57- C. Any portion of the System not designated by City for removal shall belong to and become the property of City without payment to Grantee and Grantee shall execute and deliver such documents, as City shall request, in form and substance acceptable to City, to evidence such ownership by City. 14.08 Work Performed by Others. A. Grantee shall give notice to City specifying the names and addresses of any other entity, other than Grantee, which performs services pursuant to this Franchise, provided however, that all provisions of this Franchise remain the responsibility of Grantee. B. All provisions of this Franchise shall apply to any sub-contrac- tor or others performing any work or services pursuant to the provi- sions of this Franchise. 14.09 Duty to Grantee. Nothing contained in this Franchise shall relieve any person from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee' s facilities while performing any work connected withgrading, regrading or changing the line of any street or public place or with the constrution or reconstruction of any sewer or water system. 14.10 Interest Rate. For purposes of this Franchise, prime rate shall mean the interest charged from time to time by the First National Bank of Minneapolis for ninety (90) day unsecured loans to commercial borrowers of the highest credit rating. 14.11 Applicable Law and Court Decisions; Severability. A. Grantee shall , at all times, comply with all laws, ordinances and regulations of federal , state and city government. -58- B. If any law, ordinance or regulation shall require or permit Grantee to perform any service or shall prohibit Grantee from perform- ing any service which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, Grantee shall notify City of the point of conflict believed to exist between such law, ordinance or regulation. C. If City determines that a material provision of this Franchise is affected by such law, ordinance or regulation, City shall have the right to modify, alter or repeal any of the provisions of this Franchise to such reasonable extent as may be necessary to carry out the intent and purpose of this Franchise. D. City reserves the right to revoke this Franchise and any right or privilege of Grantee hereunder if any provision of this Franchise shall be finally adjudged by a court of law invalid or unenforceable, and if City further finds that such provision constitutes at that time a consideration material to the continuance of the Franchise herein granted. E. If any term, condition or provision of this Franchise or the application thereof to any person or circumstance shall , to any extent, be held to be invalid or unenforceable, the remainder hereof and the application of such term, condition and provision to persons or circum- stances other than those as to whom it shall be held invalid or unenforce- able shall not be affected thereby, and this Franchise and all the terms, provisions and conditions hereof shall , in all other respects, continue to be effective and to be complied with. -59- 14.12 No Recourse against the City. Grantee shall have no recourse whatsoever against City or its officials, boards, commissions, agents or employees for any loss, costs, expense or damage arising out of any provision or requirement of the Franchise or because of the enforcement of the Franchise. 14.13 Nonenforcement by City. Grantee shall not be relieved of its obligation to comply with any of the provisions of this permit by reason of any failure of the City to enforce prompt compliance. 14.14 Subsequent Action by State or Federal Agencies. Should the State of Minnesota, the FCC, or any other agency of the Federal government subsequently require Grantee to deliver any signals in addition to those required by this Franchise, or to perform or cease to perform any act which is inconsistent with any provisions of the Franchise, Grantee shall so notify City. Upon receipt of such notification, City shall determine if a material provision of the Franchise is affected. Upon such determination, City shall have the right to modify or amend any of the sections of the Franchise to such reasonable extent as may be necessary to carry out the full intent and purpose of the Franchise. City may terminate the Franchise in the event City determines that substantial and material compliance with the original proposed terms of the Franchise has been frustrated by such State or Federal requirement. 14.15 Administration of Franchise. The City Administrator for the City of Shakopee shall be responsible for the continued administration of this Franchise. 14.16 General Provision on Rights and Remedies. A. All rights and remedies given to City by this Franchise shall be in addition to and cumulative with any and all other rights or remedies, -60- existing or implied, now or hereafter available to City, at law or in equity, and such rights and remedies shall not be exclusive, but each and every right and remedy specifically given by this Franchise or otherwise existing or given may be exercised from time to time and as often and in such order as may be deemed expedient by City, and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. �-- No delay or omission of City in the exercise of any right or remedy shall impair any such right or remedy, nor shall any such delay or omission be construed to be a waiver of or acquiescence to any default. The exercise of any such right or remedy by City shall not release Grantee from its obligations or any liability under this Franchise. B. In addition to all other remedies granted or available to City, City shall be entitled to the restraint by injunction of the violation, or attempted or threatened violation, by Grantee of any terms or provisions of this Franchise, or to a decree compelling performance by Grantee of any term or provision of this Franchise. C. To the extent any provision of the Offering or rules of Board are not specifically set out in this Franchise or not validly incorporated herein by reference, City from time to time may amend this Franchise to include such provision effective as of the date of commencement of the Franchise term or any such rule effective as of the date of commencement of the Franchise term or adoption of the rule, whichever is later. Grantee, by acceptance of this Franchise, consents to and agrees to be bound by any such amendments. -61- D. Grantee agrees that it will not, at any time, set up against City in any claim or proceeding, any condition or term of this 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 this Franchise in their entirety. E. In case of any dispute or question as to the meaning, interpreta- tion or application of any term, provision or condition of this Franchise, City, in its sole discretion shall resolve such dispute or question. F. City reserves the right to delegate and redelegate from time to time any of its rights or obligations under this Franchise to any body or organization. Any delegation by City shall be effective upon written notice by City to Grantee of such delegation. Upon receipt of notice by Grantee of City' s delegation, Grantee shall be bound by all terms and conditions of the delegation not in conflict with this Franchise. Any such delegation, revocation or redelegation, no matter �.. how often made, shall not be deemed an amendment to this Franchise or require any consent of Grantee. -62- SECTION 15. EFFECTIVE DATE; PUBLICATION; ACCEPTANCE; GUARANTEE; EXHIBITS 15.01 Publication; Effective Date. This Franchise shall be signed by the Mayor and attested by the Secretary of the City Council . This Franchise shall be published within fifteen days after adoption. The Franchise shall take effect thirty days after the last date of its publication in the official newspaper of the City. This Franchise may incorporate by reference, without publication in full , a statute of Minnesota or a rule of the Board or the �.. FCC and the offering of Grantee. 15.02 Publication of Notices. All public notices required to be published by City, including this Franchise, shall be published in the official newspaper of all City. Grantee shall pay the costs for publication of this Franchise and amendments to it, as such publication is required by law. 15.03 Time of Acceptance; Guarantee; Incorporation of Offering; Exhibits. A. Grantee shall have 30 days from the effective date of this Franchise to accept this Franchise in form and substance acceptable to City, unles5the time for acceptance is extended by City. Such acceptance by Grantee shall be deemed the grant of this Franchise for all purposes. B. Upon acceptance of this Franchise, Grantee shall be bound by all the terms and conditions contained herein. Grantee shall provide all services and offerings specifically set forth in the Offering to provide cable communication service within City and, by its acceptance of this Franchise, Grantee specifically agrees that the Offering of Grantee, including all promises, offers, representations and inducements contained therein, is specifically incorporated by reference and made part of this Franchise. The failure to refer to the Offering in any -63- specific provisions of this Franchise shall not be a limitation on the obligation of Grantee to fully comply with the Offering. Grantee further acknowledges that all promises, offers, representations and inducements contained in the Offering of Grantee were freely and voluntarily made to City by Grantee. C. The Offering shall be permanently kept and filed in the Office of the City Admimist a-tor and the originals or reproductions thereof shall be available for inspection by the public during normal business hours. Also, the Grantee may summarize the Offering in a manner acceptable to City or reproduce the entire Offering, and shall have either at the following locations in the following quantities: (te,�4z, 1) Office of the City A4ffiliPlgtPostor - 1 copy; 2) Public library - 1 copy each; 3) Office of the City Attorney - 1 copy; 4) Local office of Grantee - 1 copy; �.. 5) Office of any School District in City - 1 copy. D. In the event of conflicts or discrepancies between any part of the Offering and the provisions of this Franchise or between any part of the summary made by Grantee and the Offering, those provisions which provide the greatest benefit to City, in the opinion of City, shall prevail . E. Grantee shall have continuing responsibility for this Franchise, and if Grantee be a subsidiary or wholly owned corporate entity of a parent corporation, performance of this Franchise shall be secured by guarantees of the parent corporation in form and substance acceptable -64- to City, which shall be delivered at time of, and as part of, acceptance of this Franchise. F. With its acceptance, Grantee also shall deliver to City an opinion from its legal counsel , acceptable to City, stating that this Franchise has been duly accepted by Grantee, that the guarantees have been duly executed and delivered, that this Franchise and the guaran- / tees are enforceable against Grantee and the guarantors in accordance with their respective terms, and which opinion shall otherwise be in t42,e15"- form and substance acceptable to City. �i G. With its acceptance, Grantee also shall deliver to City true and correct copies of documents creating Grantee and evidencing 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. H. Each exhibit is a part of this Franchise and each is specifically incorporated herein by reference. The exhibits are as follows: I . Upon acceptance by Grantee, all fees and charges for acceptance of this Franchise and all costs and expenses in- curred by City shall be paid in full . City shall provide to Grantee an itemized statement of its expenses . Any costs not identified by City before date of acceptance shall be paid promptly to City when an itemization of such costs and expenses is provided to Grantee. -65- Passed and adopted this day ofa 1981. ATTEST: By By City Clerk Mayor A-76. 5 t„ ' I v,- This Franchise is accepted, and we agree to be bound by all its terms and conditions. Dated: By Its By Its -66- Anita L. Eencia Communications Projects 1403 Jefferson Avenue Saint Paul, Minnesota 55105 (612) 698-9621 July 20, 1981 RECEWFD JUL 2 2 1981 Ms . Jeanne Andre CITY OF 3HAKOPEE City of Shakopee 129 East First Avenue Shakopee, MN 55379 Dear Jeanne: Based on the new mileage figures between the core area and developments in the city as provided, following are the new calculations of the effect of serving the line extension areas on the total monthly revenue needed per subscriber (for basic and pay service, installation, etc. ) . Assuming 50% penetration and using the base of $29. 69 revenue needed per subscriber per month: Cumulative Percentage Cost Add-On Increase Montecito Heights $.24 .8% Zoschke/Horizon Hgts. .48 1. 6% Riverview550o 1. 6% CR89 .L.9 1.6% Maras . 59 2.0% Hillside Estates . 53 1. 7% Timber Trails . 56 1.9% Deerview . 58 2.0% Eaglewood 1. 16 3.9% It is my understanding that the Committee will bring this matter to the city council for its consideration, and that the Committee may wish to present alternative policies for handling the matter. Following are some suggestions you may wish to consider as alternatives: Ms . Jeanne Andre 1 Page 2 July 20, 1981 Alternative A 1. Maintain initial service area as it is now; 2. Require applicants to include in the initial service area any areas which reach an average density of 40 homes per street mile; and 3. List as a priority provision of service to the identified line extension areas at the lowest cost provided that the residents in those areas pay 30% of the cost of extending lines to their areas. The residents would have to pay $30,000 for extending the lines, and the operator could determine how to recover that cost. For example, each resident could pay higher installation fees, and higher monthly service rates on extended service contracts. (A $200 installation fee, plus $5 per month more than others for monthly service under a five-year contract. ) Alternative B 1. & 2. Above. 3. List as a priority provision of service to the identified line extension areas at the lowest cost provided that the residents pay in proportion to their proximity to the initial service area, and that they pay 30% of the cost of extending lines to their areas. The city could designate Montecito Heights as Zone 1 with one set of rates, Eaglewood as Zone 3 with another set of rates, and all the rest as Zone 2, with a different set of rates. An advantage of making cable service available to all Shakopee residents on a reasonable basis is that the opportunity to reach all residents is an incentive to message sources to expend energy, time and money to deliver services and informa- tion via cable. If developments grow in population, the capital investment in the area will provide a return to the system in the future. (A good service territory is one with density and growth. ) Listing provision of service to all areas at the lowest reasonable cost might encourage applicants to examine alter- native means of providing service , such as microwave . Ms . Jeanne Andre 7 1-- Page 3 July 20 , 1981 One might put the expenditure of $100 ,000 , the cost of ex- tending the lines to the entire city, in perspective . Main- taining the construction bond required by the city may cost from $50 ,000 - $75,000. As you know, I recommend that the city establish policies which will promote maximum penetration of cable in the community. If present policy is changed, I will need to make some changes in the application forms . Please keep me informed of committee and council actions on this matter. Very truly yours , // Anita L. Benda ALB/ljh TO: Shakopee City Council FROM: Eileen Christensen, Vice Chairperson of the Ad Hoc Cable Communications Committee DATE: 7-23-81 RE: Minority Report: Initial Service Area and Line Extension Policies As a member of the Ad Hoc Committee, I feel my responsibility is to represent the city residents in the whole city, not just the core area. I feel the committee' s responsibility is to recommend a policy which will provide the opportunity for all Shakopee residents to have cable T.V. The committee on a 3-2 vote is recommending a policy (RFP II B pg. 5) which effectively eliminates that opportunity for ten residential developments within the city limits. According to our consultant, Anita Benda, "if these subdivisions were to be served by a line extension policy calling for them to be charged the full cost of the extension, the cost would be prohibitive and these areas will not be served by cable. " (quoted from the July 1, 1981 committee minutes) This policy is unfair and also shortsighted, as the future growth will occur in these areas. With the previous decision made to limit our Cable Service Territory to the municipal boundaries, we have also denied these areas any option to be included in other cable systems. I would urge the Council to review these policies and perhaps utilize the consultant in making a final decision. 7c7 MEMO TO: Members of the Ad Hoc Cable Communications Committee and the Shakopee City Council FROM: Jeanne Andre , Administrative Assistant (on behalf of Judith Cox, City Clerk) RE: Resolution No. 1796, A Resolution Establishing a Uniform Policy Regarding Communications from Cable Communications Companies and their Representatives DATE: July 16, 1981 The above-listed resolution sets a policy on communications from cable communications companies and, among other things , re- quests interested companies to supply an acknowledgement of the resolution and a list of official speakers on behalf of the com- pany. The City Clerk is requested to provide the City Council and Cable Communications Committee with a list of cable opera- tors and their official speakers from time-to-time. The list of companies who have been supplied copies of the policy is supplied below. To the right of the listed companies appear the names of the persons designated as official speakers . Name of Company and Date Names of Designated Speakers Supplied Copy of Policy Zylstra Communications Roger Zylstra, Nancy Myers , March 10, 1981 Paul Zylstra Mickelson Media, Inc . Ron Schmidt , Hubertus Sarrazin, March 10, 1981 Dennis Pellant, Thor Mickelson, Bill Mickelson, Victoria Long Progress Valley Totalvision John Siegfried, Elmer Rechtziegel , March 10, 1981 Allen Brakemeier, Ray Foslid Raymond Joachim, Keiran O'Brien, Leroy Miller, Mike Nevin, Larry Vanderlinde, Robert Davies , W.R. Glaeser Herritage Communications , Inc . (No response) March 10, 1981 Cable World, Inc . (No response) July 16, 1981 JA/jam MEMO TO: John K. Anderson, City Administrator FROM: Jeanne Andre , Administrative Assistant RE: Cable Communications Franchise Future Activities DATE: April 23 , 1981 a7 iRg� Introduction The City Council has scheduled a work session to meet with the Ad Hoc Cable Communications Committee and integrate the subse- quent activities of the two bodies in the cable communications franchise process . This memo outlines activites taken to date and those still remaining to complete the franchise process . Background and Recommended Action The Ad Hoc Cable Communications Committee was formed in 1980 and has undertaken the following activities . 1. Recommendation to the City Council the establishment of a cable service territory (CST) consisting of the Shakopee municipal boundaries . (Said CST was subsequently proposed by the City Council and approved by the Minnesota Cable Communications Board) . 2 . Conducted survey of community needs relating to cable communi- cations for Shakopee Cable Communications Needs Assessment. 3. Drafted narrative of Request for Proposals (RFP) for City Council consideration. Committee has reviewed but not adopted format of forms to be enclosed as part of RFP. These forms request information in a consistent manner from all companies to facilitate comparison and evaluation of proposals submitted. Activities still remaining in the franchise process include: v/i . City Council adoption of Shakopee Cable Communications Needs Assessment . a-d41-8+ tan4 ro,-,0 2 . City Council review of RFP. 3. Council determination of following policy issues : Via. How proposals submitted in response to RFP are to be evaluated. lb. Whether outside legal and/or technical consultants should be hired by City to assist in the franchise process , and if so, who should be hired . ✓c. If budget revisions reflecting subsequent revenues and expenditures related to the cable franchise process should be adopted . John K. Anderson Page Twb April 23, 1981 ?' 11-81 4. Public hearing soliciting community input to the drafted RFP. i1" 11-61 5. City Council adoption of RFP which must include criteria and priorities developed to review franchise proposals . �� 6 . Advertisement in one local publication in circulation in the '`" CST and two national publications in the broadcasting industry of the availability of the Shakopee RFP. Submission deadline must be at least 45 days after date of publication. The Minne- sota Cable Communications Board (MCCB) recommends a longer period of advertisement in order to receive more and better proposals , especially given the large number of municipalities currently franchising. Provide copy of RFP to MCCB and interested cable companies . 7 . Review by the Ad Hoc Cable Communications Committee and the City Council of a draft cable communications franchise ordinance . Many communities draft the ordinance prior to advertisement of the RFP and include the draft ordinance as an appending docu- ment to the RFP. . • - . mi ee a .eci. - . • : ' . - - - _ ed • - - ' - - - t - .. - . _ - - • • a . ; . . . - - es -e • . • •...ort'tS'- 1Tt@Tft': rtov. 8. Receipt of proposals . "m4(... Si- 9. Evaluation of proposals . 6Z 10. Public hearing to receive oral presentation by all companies ma�ce� e2 who have submitted valid proposals for the Shakopee cable communications franchise and other interested parties . (Must be held at least 27 days prior to adoption of franchise ordinance. ) pot e2 11 . City Council award of franchise. 8212 . Incorporation of company proposal into draft cable communica- tions franchise ordinance and subsequent adoption of final ordinance (generally done at public hearing). gL 13 . Submission of ordinance to Minnesota Cable Communications Board for "State Certificate of Confirmation" . Legal publication of notice that "State Certificate of Confirmation" has been requested. 14. Construction of cable system subsequent to receipt of "State Certificate of Confirmation". JA/jms