01/26/1981 CONF MTG - 5363� �
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Official City Council Agenda
FRIRLEY CITY COUNCIL
C�JtVf=CREPdCd� N1�ETI�JG
JANUARY 26, 1981
1. Discussion with Cak�le TElevisi�n Commission Regarding
. Upcoming K�franci�ising
2.-• Dis�cussion Regarding Possible Submission of Pubiic
Housing Financing Proposal �
3. Other
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MEMORANDUM
T0: FRIDLEY CITY COUi�1CiL � '
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FROM: VIRGIL C. HERRICK, CITY ATTORNEY �/G'���
RE: REUEWAL OF CABLE TELEVISION FRANCHISE
DATE: JAI�UARY 22, 1981
I have been asked to review Chapter 405 of the Fridley City
Ordinaces re�;ardin� the provisions that relate to.the renewal
of the cable television franchise agreement. I am of the opinion
that severaZ sections reZate to this question.�I will summarize
the sections below:
S�ection 405.OR - Duration and Renewal of Franchise
This seci�ion provides that the original franchise term is one
of �en years and states that the �ranchise � be renewed for
additi.onal five-year periods. The section states the renewal
period sha11 be on the condition of the company complying with
a11 the terms and conditions of the ordinance. I am of the
opinion that this section should be interpreted in such a manner
tha� the renewal of the franchise is at the discretion of the
Council. Th� Council may exercise its discretion to renew if
the company has complied with the terms and eonditions of the
ordinance.
Sectian 405.091 - Renewal Proce3ure
This section provides that the Cable Television Commission
shall hold a hearing wiChin one year prior to the expixation
of the franchise. The Commission is to determine whether the
company has complied with the terms and conditions of the ordi-
nance and whether it has provided satisfactory cable television
service. The Commission shall recommend to the Courtcil whether
the franchise should be renetaed. This sectian states that the
Council sha11 �ake a determination on the renewal of said fran-
chise, at least six months before the expiraCion of the frart-
chise period .
Section 405.30I - Procedure Upon Termination
Upon expiration, termination, or revocaeion o£ the franchise,
the company shall remove aIl of its plant, structures, and
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equipment located upon public propeY•ty. The CiCy shall have
a peric�d of time to purchase or condemn the plant, sCructures
and eyuipment.
Section 405.302 - Procedures Upon Reimbursement
If the franchise �.s cancelled or not renewed for any reason
other than the company's failure to comply wii.h the terms and
condiLions of the ordinance or other laws and regul_ations,
the City has an optiot� to acquire the system at a cost not
to exceed its book value, less accumulated depreciation.
Section 405.11 - Rights Reserved to the City
This sec�ion specifically grants the City the right to acquire
the property of the company where by purchaszng or by eminent
domain; the City also has a right o� first refusal to purchase
the franchise upon the same terms and conditions of any offer
f rom �a third pa rty .
Section 405.114 - Rights P.eserved to the City
The City has authority to amend the ordinance so as to require
higher standards of construction, operati.on antl mainCenance.
Section 405.185 - Upgrading of Standards
This section requires the company to uPgrade its facilities,
equipment, and service so that its system i.s as advanced as
the current state of technology will allow.
Sectzon 10.08 of the Fridley City Charter is entitled, "Renewals
or Extension of Franchises." This section states that every
extension, renewal or modification of an existing franchise
shall be subject to the same limitations and grante3 in the
same manner as a new franchise. This sect� on of the charter
is consisten� with my interpretation of Section 405.09 above.
It is my opinion that the city tias th� option of renewing the
f ranchise. If the Ci.ty were to choose not to renew the fran-
chise, it would hav� the opt.ion of acquiring the system at
the present book value. The Citv can amend the ordinance �o
require higher standards, as long as such amendment is reason-
able. Failure of the company to meet such increased standards
would be considered a breach of the f ranchise agreement.
It zs my opinion that i.f the City conclucies that the present
franchise holder has met the terms and conditions of the ordi-
nance and agrees to meet any reasonable rec�uests for upgrading
the system, that it would be expedient and prudent to renew
a fraxtchise f.or a five-year period.
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�� ��OIIA: �D..P.W, Clyde V. Moravetz, CATV Staff Rep. TO . : ACTIO�N iNFO.
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SUBJECT '; ,,..: .. : Naszm Qureshi , Ci ty Mana er
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The Cab7e Commission wi�Ch the ossible exce tion of one member, has accept�d�
:the invitation ta meet w�th the Council on January 25tho Nopefully, the City
Gouncil wi�l lay out some guidelines and a sense of direction to the Commis-
sion regarding the upcoming cable television renewal process.
Our present Cable Franchise Ordinance, whieh will expire December l, 1982,
' mandates ihat within one year prior to the ex�iration of the franchise period,
the Commission sha�� hold a public hearing(s) to determine (1) whether the '
campany has complied with all of the terms and conditions of this ordinance
and oth�r applicable 1oca1, state and federa� laws and regulations. (2) Whe- �
ther the company has provided the City with satisfactory cable television
- service. (3} Whether the Coramissiort shall reco►�nmend to the Council the, re-
; newal of the company's franchise for an additiona7 five year period. Notice
of said hearing shall conform to the charter requirement for the granting of
� a new franchiseo Application for renewal shall be on such forms, and shall
cantain such information as shall be prescribed by the Commission. The Com-
' mission sha7l make its recammendations to the Council within 6Q days after the '-A •�
, close of the pubYic hearing. 7he Council shall make a determination of the
renewal of said franchise at least six months before the expiration of the
� existing f'ranchise. `
Some possib�e areas, among athers, whieh warra�t review include:
I la Should we require another franchise acceptance fee? �
2. Term of franchise--5, I0, 15 years? (Company is sur.e to request greater
than 5 years.) .
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3o Formats for company to use in submitting business, technical and financial
repor�s. :
4o Rate limitations: basic, a cable, Tnstaliation etc.
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5, Services and programming (State of the Art), ,
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: 7e Publlc;-accessand/or community programming. Should we require company ' �•�
,:; 'S, �,��;�ta provide equipment and �ull o� part=time personal services to .Y 4,4j�������F
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' The company has .:., , ., - - � ;;" � ' �. `t , ;�
indicated that they will pravide a pro�osal to the C��y by �
June of this year. A1so, a capy of their southwest CST (cable service terri-
tary� proposal should be available in February or Marcho I will provide
cop:ies of new cabTe franchise proposals of the metro area when they become
available.
I have invited Anne bavis of the Minnesata Cable Corr�nunicaiions Board to be
in attendance to answer any questions relating to State Requirements for "
franchise and certificate renewals. _ ,
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405.072 ,
7he City Council may, from year to year in its discretion, reduce the amount of money
required in the securiiy funci or surety bond.
405.08 ACCEPTFI•aCE FEf_
7he company shall �ay to the City at the time of granting of the franchise an acceptance
fee in the sum o� $25,060. This fee shall be used by the City to cover its adminis-
trative expenses in supervising t.rie CATV apnlicati�ns, preparation of the chapter,
supervision of the construction and operation of tne CATU system.
405.09. DURATiO�y AP�D REi•dE'r,AL UF FRar�CNISE
The franchise and rights herein granted shall take effect and be in force from and after
December 1, 1972, and snall continue in force for a period of ten (10) years
thereafter, providing that the francnise and the rights herein granted may bP renewed
for additional five year periods upon exqiration of the initial 10 year franchis�. The
five year rene��+al period shall be upon the condition of the company compl;/ing with all
the terms, conditions contained in this ordinance.
405.D91 RENE'�JAL PROCEOURE
4Jithin cne year prior Lo the expi�°ation oE the franchise period, the Comrnission shall
hold a public h�aring to d�termine (1) whether tV�e company nas complied with alt of the
terms and conc;itions of this ordinance and other applicahle local, state and federal
laws and regulations. (2) '�li�ether th2 company has provided the City wi�h satisfactory
cable television service. (3) Whether the Commissi�n shall recommenr� to the Council
the ren2wal of the Company`s francnise for an additional five y2ar p°riod. PJotice of
said heariny shall conform to the charter requirenent for tne grantiny of a new
franc�llSe, r'1Pp�iCdt10f1 for r�i;e�+�al s�all be on such �orms, e.nd shall contain such
information as shall be prescrib�d by thz Com,��issi�n, The Comn�ission shall make its
recammendations to the Council wi*hin 60 days afiter the close or the public hearin9.
7he Council shall r,iake a deter•mination on the rer,ewal of said franch9se at leasi six
months bef�re t4ie expiration of the er,istinq franciiise.
40�.301. LIh1ITATI0N5 OF FRANCHISt OR LICENSE
Any franchise granted under this ordinance shall be nonexclusive.
405.102.
No privilege or exemption shail be granted or conferred by any franchise granted under
this ordinance except those specifically pre>ci-ibed 'nei°ein.
405.103.
An}� privilege claimed
public property shall
other public property
widening, etc.
405.104.
under any such franchise by the company in any street or other
be suhordinate to any prior lawful occiipancy of the streets or
or to any planned improvements such as sidewalks, roadway
Any such franchise shall be a privil�ge Co be held in persunal trust by the original
company. Ii cannot be sold, transferred, leased, assigned or disposed of, in whole or
in part, eit�f�er by volunt?ry or involuntary salz, msrger, consalidation or in any other
manner, withoul the prior consent of the Concil expressed by resolution, and then only
under such condition� tliat may therein be prescrioed. Prior approval of tl�e Council
shall be required �.�h�re o�vnership or control of more than 10 per cent of the voting
shares of tii3 company is acquired by a person or p°rsons, none af �vFiom presently owns
or controls 10 per cent ar more o° such voting stock, singularly or collectively. Any
reyuest for permission to sell, transfer, lease, assign, or dispose of this franchise
405.10�.
ACCEPTANCE
FEE
DURATION AyD
RENEWAL OF
FRANCHISE
RENE4JAL
PROCEDURE
LIMITATIOtJS OF
FRAfdCHISE OR
LICENSE
Q05-�
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405.112
shall be mlde to the Commission. The Commission shall hold such hearings as in its LIMITATIOP;S OF
discretion ar-e m�cess�ary and within a reaso�,able time make its� recorunendations to t.i�e fRAr�C►1ISE OR
Council. l•Jithin 30 days a`ter,approval by the t"ouncil, a duly exccut�.d copy of such trans- LICEIJSE
fer or assiyn:nent shall be filed in the office of the l,ity Clerk. ' •
405.105.
Timc shail be of the essence of any such tranchise granted hereunder. Ther company shall
nol be relieved of its obliyation to c�mply promptly with any of the provisions of this
ordinance or by any failure of tf�e City to enforce prcmpt co�pliance.
805.106.
Any right or 'po��er in, or duty impresses upon,
board oF tttie City shall be subject to transfer
employ2ee, departiTient, ur noard of ti�e City.
405.107.
any officer, employee, depari:ment, or
by the City to any other officer,
The company shall have no recourse v�hatsoever against t.ie City for any loss, cost,
expense, or damage arising out of any provision ar require��ient of this ordinance or of
any franchise issued hereund2r or because of its enforcem�nt.
405.108. '
Ttie company shall be subject to all requirements of pertinent Federal and State of
htinnesota laws and regulations, as w211 as pertinent City ordinances, rules,
regulations and specificai:ions her�etofore or hereafter enacted or established.
405.109.
An_y such franchise grant�d shall not relieve t��e corr�pany of any obligatian involved in
obta�ning pole space from any department oi ti�e City, utility company, or from others
r�zintaininy poles in th� stree�s.
405.110.
Any franchise granted hereunGer shail be in lieu of any and ali other rigf�ts,
privileres, por;ers, imm�mities, and authorities owred, possessed, controlled, or
exercisaole by cornpany, or any successor to any int�rest of ccmpany, o� or pertaining
to the coi�struction, operation, or raintenance of any CFlTV syst�m in the City; an� the
acceptance or any franchise her�under s��all eperat2, as bet+-��en company and th2 City,
as an abaridonment of any and a?1 of such rights, �rivileges, powers, im„�unities, and
authcriti�s tiaithin tne City, t� tiie eFfect tnat, as betwe2n company and the City, any
and al; construction, operatiion and ��aintenance cy the company of any CATU s,ystem in
the City snall be, anci shall be deem�d and ccnstrued in all instances and i-espe�ts to
be, under and purs�.�ant to said francf�ise, and nat under or pursuant to any other right,
privilege, po�ver, immunity, or authoriCy wnaisoever.
405.111. RIGNTS RtSERUED TO THE CiTY
Kothing herein shail be u�emed or construed to impair or affect, in any �aay, to any
extent, the right of the Ci.ty to acquire tne p�-o�erty of the company, either by
purchase or throu9h the exercise or' ti�e riaht of er��inent domain, at a fair and just
value, ��rhich sl�all not inrluJe any amount for tne franchise itsei�' or for any of t.he
ric;hts or privileges yranted and nothing herein contained °hall be construed to
contract a�ray or to modify or abri�l���, r.ith�r for a term or in pei-p�tuity, ti�e City's
riglit �f emine.nt domain. In a�l3itio�� te tti� riyht of e;ninent �o;�iain, the City reserves
the rig��t of first refusal t.o p.��,:f�as� said Franchise upon the same terms and
conditions of any bona fide offer from a third party t� purchase said company.
405.112.
Thei�e: is hereuy reserved to Lhe Ci�y every right and p��.�er ;�hich is required tc be
herein resi�i•ved or provided by any ordinance of the City, and CI1:' company, by its
acceplance oi any frar�ciiis:, ayrees to be t?oui�d tn�>reby and to coriE�ly W1iI1 any action
or r•eq«ireri�nts of tlle City in its exercise os such riGf�t:; o�° po+�er, I�eretofore or
hcrreafter enacted or establisiie�i. � .
FtIGNTS RESERVED
TO THE CITY
4�5-5
405.113.
Neither the granting of any franchise hereunder nor any of the provisions contained
herein shall be constru,ed to prevent the City from granting any idenCical, or similar,
franc4iise to any other person, firm or corporation, within all or any portion of the
City. �
405.114. ,
There is hereby reserved to the City the po�.�rer to amend any section or part of this
ordinan�e so as to require additional or yreater standards of construction, operation,
maintenance or otr�err�ise, on the part of th�� com�any: The co�npany shall be notified at
least 30 days prior to the enactment of any am�ndment of this ordinance.
405.115.
Neither the granting of any franchise nor any provision hereof shall constitute
vraiver or bar to the exercise of any governm2ntal right or power of the City.
405.116 ARBI7RATION
The City Manager is hereby authorized and empowered to adjust, settle, or compromise
any cor�troversy or• cnarge arising from the operations of ar,y company under this
ordinance, either on behalf of the City, or ti;e company, in th2 best interest of the
public. Either the City or th2 company when dissatisfied with the decision of the City
Manager may appeal the matter to a Eoard of Arbitratior for hearing and final
determinaticn. The Board of Arbitration may accept, reject or modify the decision of
the City fM1anager; and ti�e Board af Hrbitratian may adjust, settle or compromise any
controversy arising from the op2rations of any co�apany or from any Qrovision of this
ordinance. The decision of the Board of arbitration shall be final. (Ref. 646)
The Board of Arbitration shall be comprised of three (3) members, one of whom shall be
appointed b�p the City, the second appointed by tf�e Co;r:pany and the third to be
appoi�2ted by the athe;� two members. Upon failure to aGree upon selection of th2 third
m�mber, such third me7�ber siiall.be ap�cinted by ine Senior� Judge of the Gistrict Court.
405.117.
Service Complaint Procedures. The Company shall maintain an office in the City to deal
with service complaint, of suoscribers. If dissatisfied wiCh the decision of the
Company, tne City Manag2r is hereby authorized and emposver-ed to adjust, settle, or
co�npromise any contro�fersy or ct�arg2 arising f'rom ti�e operations of any company under
this oi'dinace, eiiner on behalf of the coinp]ainant or ti�e Company, in the best interest
of the public. Either tne Cornpany or� an_y subscriber �vho may be dissatisfied with the
decision of ti�e City P1anager may appeai the matter to a CO^Sf'LAINT REVIEW BJARQ for
hearing a�;d fir,al determination. Tne Comp�aint Review Loard may accep:t, reject or
modify the decision of the City Manager; and the Complaint Revie:� [3aard niay adjust,
Settle or cer�promise any contt�oversy arising from tne o�erations of any company or from
any provision of tnis ordinance. The decision of the Complaint Review Board shall be
fir,al.
Complaint Revie��: Board; The C.oatplaint Review Board shall be com�rised of three
members of the Cable Teievision Commission, appointed by the Chairman of the Cable
felevision Commission
Camplaints by any subscriber as ta the operation of any CATV system shall be filed in
►vriting with the City or Cornpany, eacii of �vhich shall, withir ten days, forward copies
of such co�nplaints to the eth�r. Tne. City snall be neti�ied by tiie franchisee on forms
to be prescribed oy the Commission not less than every three montiis, of the complaints
of subscribers received during tlie reportiny p�riod and the manner in which they have
been met, incl�ding the tin�e requied to rt+ake any necessary repairs or adjustments.
405.117
ARBITRATION
405-6
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FROM ���Cl.s �'i�� ������Y'��
DATE January 20, 1981 �
SUBJECi
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nn��no �0.8�-os
ACTtONI 1NF0.
X
Public Housing Proposal
HUD has recently sent us appli�ation material for Public Housing Project units that are
availab?e ta local units of government in Minnesota. (50O in total).
Rita Conner contactec! HUD on a potential elderly project for Fridley. They indicated
that large family projects would r�ceive the higriest priority and any application that
cambined the two would be laoked at favorably.
Any application tha.t is submitted can be considered in any ef the next three funding years.
HUC indicated that they would like to see an application rram Fridley.
I would like some inciication from you as to whether you feel �:hat the City Council would
consider this type of project before we put any �urther effort into it.
JLBJde