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HomeMy WebLinkAbout307 .... ~((ibabit of t)ublication . 0) ~tatc of :ffiinncgota } gg. !UL 141998 (/Count!, of !\amgc!' TONYA R.STENSGARD rnv O~ A~in;i Hii: ~ ',." ,'beil"fg"e:ttlIV"sWorn, on oath, says that he/she is the publisher or authorized agent and employee of the publisher of the newspaper known as SHOREVIEW BULLETIN , and has full knowledge of the facts which are stated below: (A) The newspaper has complied with all of the requirements constituting qualification as a qualified newspaper, as provided by Minnesota Statute 331A.02, 331A.07, and other applicable laws, as amended. (B) The printed ORDINANCE NO. 307 which is attached was cut from the columns of said newspaper, and was printed and published once each week. for 1 successive weeks; it was first published on WEDNESDAY, the 8TH day of JULY 19~, and was thereafter printed and published on every to and including , the day of , 19.ID1..-; and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice: *ABCDEFGHIJKLMNOPQRSTUVWXYZ zlrnl,f:.' ~ %z~rr ))12 *ABCDEFGH IJKLMNOPQRSTUVWXYZ *abcdefghijklmnopqrstuvwxyz Boo keeper U Subscribed and sworn to before me on this 8TH day of JULY 19~. S~~ "- ~ Notary Public *AI~habet should be In the s::-me size and kind of type as the notice. i~ STEPH'~IE K. M'C .-, I ~ , -..... , - ~> r,J"L, lY. u_UC - r.,',j< ,_ TA ~ R,I\M~EY CaL''l, Y RATE INFORMATION Mv Comm. Exp res Jan. 31,2000 . . (1 ) Lowest classified rate paid by commercial users for comparable space. . . . . . . _ . . . . . . . . . . .. . . - . $17.00 per col. inch (2) Maximum rate allowed by law for the above matter_ _ . . . . . . . _ . . . . . $11.56 per col. inch (3) Rate actually charged for the above matter. . . . . . . . . - . . . . . . . - - . . $ per cal. inch . 1/9B ". ,-, CITY OF ARDEN HILLS . COUN'IY OF RAMSEY SECTION 5. STATE OF MINNESOTA SEIMCI! PIlOVISIONS This Section provides for rate regulation AN ORDINANCE SUMMARY when permitted by law, customer service ORDINANCE NO. 307 standards, late fees and subscriber contracts. "AN ORDINANCE GRANTING A SECTION 6. FRANCHISE TO MEDIAONE TO ACCESS CHANNEL(S) PROVISIONS I;ONSTRUCT, OPERATE, AND MAtNTAlN The company will provide twelve (12) A CABLE COMMUNICATIONS SYSTeM IN channels '0< public, education and THE CITY OF ARDEN HILLS, SETTING government programming. The company will FORTH CONDmONS ACCOMPANVlNG continue to comply with all requirements THE GRANT OF THE FRANCHISe." regarding community programming operations On the 29th day of June, 1998, the ,Arden and funding, and in addition will inoreas!' the Hills City Council adopted Ordinance No.. 307, funding by $667,286 over the life of the _. hoo~ to _any af the and pursuant to local and Minnesota law by Franchise. _ 01 "'" _; ot"" pr&dlced five affirmative votes, directed that a summary SECTION 7. fraud or dee8itupon City, This Section also of the ordinance be_ published in the City's INSTITUTIONAL NElWORK p-NET) contains prOViSiOns regarding abandonment Official Newspaper, and that a printed copy of PROVISIONS of service anCli removal of equipment and Ordinance No. 301 be posted Qn the City's This Section contains provisions requiring requires that ,th~ company receive approval bulletin board and otherwise be made the company to dedicate certain capacity for prior to sale or ttansfer, available for Inspection by aMy person during use by designated institutions, and contQ.k1s SECTION 11. regular business. hours at Itle office of the Cfty terms and conditions for the usage and PROTECTIO". OF fNDIVIOUAL RIGHTS Administrator at 4364 West Round Lake performance of this institutional network. This Section trohlblts discriminatl(m and Road, Arden Hills,.MN 55112 SECTION .. requires subscrl er prtvacy by the company, STATEMENT OF INTENT AND PURPOSE OPERATION AND ADMINISTRATION SECTION 12. The City intends, by the adoption of this PROVISIONS U~OA~DCONNECTIONSAND Franchise, to bring about the further This Section contains provisions requiring MODIFICATIONS development of a Cable System, and the the company to pay quarterly to City or its This Section prohibits unauthorized continued operation of it. Adoption of this delegatee, a Franchise Fee in an' amount connections to Itle System or damage to the Franchise- is, in the Judgment of the Councit, In equal to five percent (5%) of its quarterly System. ' the best interests of the City and its residents. Gross Revenues../n addition, the City shall SeCTION 13. FINDINGS have the right to require the company to MISCELLANEOUS PROVISIONS The City Council makes the following provide copies of any records, and the T!'1is Section!. contains a vari.ety of findings: , company must file with the City a report of ,all requirements co:ncerning Franchise. renewal, 1. The company technical ability, financial Gross Revenues and shall furnish such other amendments,. ~tiance wIth applicable law, condition, legal qualifications, ana character reasonable reports with respect to operations and interpr~ of the Franchise. were considered and approved; as may be required. If requested, the SECTION 14- . 2. The company plans for constructing, company shall furnish the maps, plats, and PUBUCA~N EFFECTIVE DATE; upgrading, and operating the System were permanent records of the location and ACCEPl:. CE AND EXHIBITS considered and found adequate and feasible; character of all facilities. This Section -requires that the Franchise be 3. The Franchise complies with applicable Finally, the City may require evaluation published in a~rdance with applicable local laws and regulations; and _sessions at any time during the term of this and Minnesota ~. The Effective Date of this 4. The Franchise is nonexclusive. Franchise. As a result of lI1e review session, Franchise shaH be the date of acceptance by' SECTION 1. the company will meet with City and the company :in accordance with the SHORT TITLE AND BEANITIONS undertake goad faith efforts to reach provisions of SEKition 14.2. ThisSaction names the Franchise Ordinance agreement on Changes and modifications to The company ~hall accept this Franchise as the Catle Franchise Ordinance and \ the Franchise which are both economically within sixty (60) days of its enactment by' the contains many definitions regarding the Cable and technically feasible. Cfty Council provided, howewr, this Franchise System. SECTION 9, shall not be ~lve until all City ordinance seCTION 2. GENERAL FINANCIAL AND INSURANCE adOption proced""res are complied with and all GRANT OF AliTHORITY AND GENERAL PROVISIONS applicable timeliries have run for the adoption PROVISIONS This Section contains prOViSions requiring of a City orctinanqa. This Section grants a nonexclusive, fifteen the company to furnish a performance bond to AdQDlinn Date: JPassed by the City Council of (15) year Franchise pursuant to the City in the amount of $500,000 and deliver to the City of Arden Hills, the 29th day of June, company's proposal and additional City an unconditional letter of- Credit from a 1998. reqUirements contained in 'the Franchise. This National or State Bank approved by City In the /8/ Dennis Probst Section further provides for free subscriber amount of $25,000 to secure compnance with Mayor service to designated public and educational 'the terms of the Franchise. AlTEST: institutions. In addition, this Section provides thai the City /8/ BrIon F~"'''I1or SECTION 3. and its agents shall not be liable for any loss CIlyAdmlnl_ CONSTRUCTION STANDARDS or damage arising out of any action of the (1ltJ1_: July.. 1998) This Section provides for permitting company with respect to this Franchise. requirements, construction code compliance, Finally, as a part of the indemnification undergrounding requirements, and other above, the company shall maintain a conditions on the use of the Rights-of-Way. comprehensive general liability insurance SECTION 4. policy for any and all damages and penalties DESIGN PROVISIONS which may arise as a result of this Franchise This Section provides for the construction of in the sum of not less than $1,000,000 for a System providing 750 MHZ capacity and personal injury or death of anyone Person, whicl1 is fully acttvated wtthlhe capability of a and $2,000,000 tit personal injury or death of minimum of up to eighty-one (81) video two or more Persons in any one ooc:urrence, channels. $500,000 for property damage to anyone The company will develop, construct and person and $2,000,000 for property damage operate a System capable of providing non- resulting from any one act or occurrence, video services such as high-speed 'data SECTION 1.. transmission, Internet access, and other SALE, ABANDONMENT, TRANSFER AND competitive services which. shall be activated REVOCATION OF FRANCHISE . as Marketplace Need dictates. This Section provides that the City reserves The company will complete all construction the right to revoke this Franchise, if It is related to the System upgrade on or before determined by City that the company has November 30, 2000. The Section contains violated material provisions(s) of this raquiremenli regarding testing and technical standards and provides for iour (4) channels to be interoonnected wl1h all adtOining cable systems. CITY OF ARDEN HILLS . COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE SUMMARY ORDINANCE NO. 307 "AN ORDINANCE GRANTING A FRANCHISE TO MEDlAONE TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CITY OF ARDEN HILLS; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE." On the 29'h day of June, 1998, the Arden Hills City Council adopted Ordinance No. 307, and pursuant to local and Minnesota State law by five affirmative votes, directed that a summary of the ordinance be published in the City's Official Newspaper, and that a printed copy of Ordinance No. 307 be posted on the City's bulletin board and otherwise be made available for inspection by any person during regular business hours at the office of the City Administrator at 4364 West Round Lake Road, Arden Hills, MN 55112. STATEMENT OF INTENT AND PURPOSE . The City intends, by the adoption of this Franchise, to bring about the further development of a Cable System, and the continued operation of it. Adoption of this Franchise is, in the judgement of the Council, in tbe best interests of the City and its residents. FINDINGS The City Council makes the following findings: 1. The company technical ability, financial condition, legal qualifications, and character were considered and approved; 2. The company plans for constructing, upgrading, and operating the System were considered and found adequate and feasible; 3. The Franchise complies with applicable laws and regulations; and 4. The Franchise is nonexclusive. SECTION 1. SHORT TITLE AND DEFINITIONS This Section names the Franchise Ordinance as the Cable Franchise Ordinance and contains many definitions regarding the Cable System. . - .--.-- ~ - - ~ -~- PAGE TWO ORDINANCE NO. 307 JUNE 29, 1998 . SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS This Section grants a nonexclusive, fifteen (15) year Franchise, pursuant to the company's proposal and additional requirements contained int he Franchise. This Section furtber provides for free subscriber service to designated public and educational institutions. SECTION 3. CONSTRUCTION STANDARDS This Section provides for permitting requirements, construction code compliance, undergrounding requirements, and other conditions on the use of the Rights-of-Way. SECTION 4. DESIGN PROVISIONS This Section provides for the construction of a System providing 750 MHZ capacity and which is fully activated with the capability of a minimum of up to eight-one (81) video channels. The company will develop, construct, and operate a System capable of providing non-video . services such as high-speed data transmission, Internet access, and other competitive services which shall be activated as Marketplace Need dictates. The company will complete all construction related to the System upgrade on or before November 30, 2000. The Section contains requirements regarding testing and technical standards and provides for four (4) channels to be interconnected with all adjoining cable systems. SECTION 5. SERVICE PROVISIONS This Section provides for rate regulation when permitted by law, customer service standards, late fees and subscriber contracts. SECTION 6. ACCESS CHANNEL(S) PROVISIONS The company will provide twelve (12) channels for public, education and government programming. The company will continue to comply with all requirements regarding community progranlming operations and funding, and in addition will increase the funding by $667,286 over the life of the Franchise. . I . PAGE THREE ORDINANCE NO. 307 JUNE 29, 1998 SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS This Section contains provisions requiring the company to dedicate certain capacity for use by designated institutions, and contains terms and conditions for the usage and performance of this institutional network. SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS This Section contains provisions requiring the company to pay quarterly to City, or its delegatee, a Franchise Fee in an amount equal to five percent (5%) of its quarterly Gross Revenues. In addition, the City shall have the right to require the company to provide copies of any records, and the company must file with the City a report of all Gross Revenues and shall furnish such other reasonable reports with respect to operations as may be required. If requested, the company shall furnish the maps, plats, and permanent records of the location and character of all facilities. Finally, the City may require evaluation sessions at any time during the term of this Franchise. As a result of the review session, the company will meet with City and undertake good faith . efforts to reach agreement on changes and modifications to the Franchise which are both economically and technically feasible. SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS This Section contains provisions requiring the company to furnish a performance bond to City in the amount of $500,000 and deliver to City an unconditional Letter of Credit from a National or State Bank approved by City in the amount of$25,000 to secure compliance with the terms of the Franchise. In addition, this Section provides that the City and its agents shall not be liable for any loss or damage arising out of any action of the company with respect to this Franchise. Finally, as a part of the indemnification above, the company shall maintain a comprehensive general liability insurance policy for any and all damages and penalties which may arise as a result of this Franchise in the sum of not less than $1,000,000 for personal injury or death of any one Person, and $2,000,000 for personal injury or death of two or more Persons in anyone occurrence, $500,000 for property damage to anyone person and $2,000,000 for property damage resulting from anyone act or occurrence. . PAGE FOUR ORDINANCE NO. 307 JUNE 29, 1998 . SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE This Section provides that the City reserves the right to revoke this Franchise, if it is determined by City that the company has violated material provision(s) of this Franchise, has attempted to evade any of the provisions of the Franchise; or has practiced fraud or deceit upon City. This Section also contains provisions regarding abandomnent of service and removal of equipment and requires that the company receive approval prior to sale or transfer. SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS This Section prohibits discrimination and requires subscriber privacy by the company. SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS This Section prohibits unauthorized connections to the System or damage to the System. SECTION 13. . MISCELLANEOUS PROVISIONS This Section contains a variety of requirements concerning Franchise renewal, amendments, compliance with applicable law, and interpretation of the Franchise. SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS This Section requires that the Franchise be published in accordance with applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of acceptance by the company in accordance with the provisions of Section 14.2. The company shall accept this Franchise within sixty (60) days of its enactment by the City Council provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied with and all applicable timelines have run for the adoption of a City ordinance. Adoption Date: Passed by the City Council of the City of Arden Hills, the 29'h day ofJune, 1998. DENNIS PROBST, MAYOR ATTEST: (facsimile) BRIAN FRITSINGER, CITY ADMINISTRATOR (facsimile) . (Affidavit Required) . ORDINANCE NO. 307 CITY OF ARDEN HILLS CABLE TELEVISION FRANCHISE ORDINANCE Date: July 15, 1998 e Prepared by: Thomas D. Creighton RobertJ. V. Vose Bernick and Lifson, P.A. 1200 The Colonnade 5500 Wayzata Boulevard Minneapolis, Minnesota 55416 Telephone: (612) 546-1200 Facsimile: (612) 546-1003 - , . STATEMENT OF INTENT AND PURPOSE .......................................1 FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 SECTION 1. SHORT TITLE AND DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 1. Short Title. ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS ..................... 5 1. Grant of Franchise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2. Grant of Nonexclusive Authoritv. ............................... 5 3. Lease or Assif.!mnent Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4. Franchise Term. ............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5. Previous Franchises. ......................................... 6 6. Comnliance with Applicable Laws. Resolutions and Ordinances. ...... 6 7. Rules of Grantee. ............................................ 7 8. Territorial Area Involved. ..................................... 7 9. Written Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 - 10. Subscriber Network Drops to Desif.!nated Buildinf.!s. ................ 8 SECTION 3. CONSTRUCTION STANDARDS.......................................... 9 1. Registration. Permits and Construction Codes. . . . . . . . . . . . . . . . . . . . . . 9 2. RepairofRif.!hts-of-WayandProverty. ...........................9 3. Conditions on Right-of-Wav Use. ............. . . . . . . . . . . . . . . . . . .9 4. Undergrounding of Cable. ......... . .. . .. . .. . .. . .. . .. . . . .. . .. . 10 5. Installation of Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 6. Safety Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 SECTION 4. DESIGN PROVISIONS ................................................. II 1. System UOf.!rade: Minimum Channel Capacitv. ................... 11 2. Construction Timetable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3. Interruption of Service. ...................................... 12 4. Technical Standards. ........................................ 13 5. Special Testing. ............................................ 13 6. Droo Testinf.! and Replacement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 7. FCC Reports. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 8. Interconnection. ............................................ 14 9. Nonvoice Return Capability. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . 10. Lockout Device. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . SECTION 5. SERVICE PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1. Regulation of Service Rates. .................................. 14 2. Non-Standard Installations. ................................... 14 3. Sales Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4. Subscriber Inquiry and Complaint Procedures. . . . . . . . . . . . . . . . . . . . . 15 5. Subscriber Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 6. Refund Policy. ............................................. 16 7. Late Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 8. Office Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 SECTION 6. ACCESS CHANNEL(S) PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1. Public. Educational and Government Access. .. . . . . . . . . . . . . . . . . . . . 16 2. Charf.!es for Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3. Access Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 4. Access Suvoort. ............................................ 17 5. Studio Relocation. .......................................... 17 6. Regional Channel 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 7. State and Federal Law comoliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 e SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS ........................ 18 1. Capacity. ................................................. 18 2. Grantee's Use of Capacity. ................................... 19 3. End-User Equipment. ........................................19 4. Service Standards. .......................................... 20 SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS. . . . . . . . . . . . . . . . . . . . . . .20 1. Administration of Franchise. ....... . . . . . . . . . . . . . . . . . . . . . . . . . . .20 2. Delef.!ated Authoritv. ........................................ 20 3. Franchise Fee. ............................................. 20 4. Access to Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5. Reports and Maps to be Filed with City. . . . . . . . . . . . . . . . . . . . . . . . . . 21 6. Periodic Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS ...................21 1. Performance Bond. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2. Letter of Credit. ............................................ 22 3. Indemnification ofCitv. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4. Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 . . SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE ... 26 1. Citv's Rif.!ht to Revoke. ...................................... 26 2. Procedures for Revocation. ................................... 26 3. Abandomnent of Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4. Removal After Abandomnent. Termination or Forfeiture. ...........27 5. Sale or Transfer of Franchise. ................................. 28 SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS ................................. 30 1. Discriminatory Practices Prohibited. .. . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2. Subscriber Privacy. .........................................30 SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS.................. 31 1. Unauthorized Connections or Modifications Prohibited. ............ 31 2. Removal or Destruction Prohibited. ............................ 31 3. Penaltv. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 SECTION 13. MISCELLANEOUS PROVISIONS ........................................ 31 . 1. Franchise Renewal. ......................................... 31 2. Work Performed by Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3. Amendment of Franchise Ordinance. ........................... 31 4. Compliance with Federal. State and Local Laws. .................. 32 5. Nonenforcement bv Citv. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 6. Rif.!hts Cumulative. ......................................... 32 7. Grantee Acknowledgment of Validity of Franchise. . . . . . . . . . . . . . . . . 33 SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS. .. . . . .. . . 33 1. Publication: Effective Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2. Acceptance. ............................................... 33 . ~.. . ORDINANCE NO. 107 AN ORDINANCE GRANTING A FRANCHISE TO MEDIAONE NORTH CENTRAL COMMUNICATIONS CORP. TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CITY OF ARDEN HILLS; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS-OF-WAY [IN CONJUNCTION WITH THE CITY'S RIGHT-OF-WAY ORDINANCE, IF ANY, AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN; The City Council of the City of Arden Hills ordains: STATEMENT OF INTENT AND PURPOSE The City intends, by the adoption of this Franchise, to bring about the further development of a Cable System, and the continued operation of it. Such development can contribute significantly to the communication needs and desires of the residents and citizens of the City and the public generally. Further, the City may achieve better utilization and improvement of public services and enhanced economic development with the development and operation of a Cable Communication System. . Adoption of this Franchise is, in the judgment of the Council, in the best interests of the City and its residents. FINDINGS In the review of the request and proposal for renewal by Grantee and negotiations related thereto, and as a result of a public hearing, the City Council makes the following findings: 1. The Grantee's technical ability, financial condition, legal qualifications, and character were considered and approved in a full public proceeding after due notice and a reasonable opportunity to be heard; 2. Grantee's plans for constructing, upgrading, and operating the System were considered and found adequate and feasible in a full public proceeding after due notice and a reasonable opportunity to be heard; 3. The Franchise granted to Grantee by the City complies with the existing applicable Minnesota Statutes, federal laws and regulations; and 4. The Franchise granted to Grantee is nonexclusive. . 1 - -- . SECTION 1. SHORT TITLE AND DEFINITIONS 1. Short Title. This Franchise Ordinance shall be known and cited as tl1e Cable Franchise Ordinance. 2. Definitions . For the purposes of this Franchise, the following terms, phrases, words, and tl1eir derivations shall have the meaning given herein. When not inconsistent with the context, words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. The word "may" is directory and discretionary and not mandatory. a. "Basic Cable Service" means any service tier which includes the lawful retransmission of local television broadcast signals and any public, educational, and governmental access programming required by tl1e Franchise to be carried on the basic tier. Basic Cable Service as defined herein shall not be inconsistent with 47 U.S.C. ~ 543(b)(7). b. "City" means City of Arden Hills, a municipal corporation, in the State of Minnesota, acting by and through its City Council, or its lawfully . appointed designee. c. "City Council" means tl1e governing body of tl1e City. d. "Cable Service" or "Service" means the provision of communications and/or entertainment services as "Cable Service" is defined by Minn. Stat. ~ 238.01 et seq. and 47 U.S.C ~ 521 et seq., as may be amended from time to time, but including Institutional Network services. e. "Cable System" or "System" means a system of antennas, cables, wires, lines, towers, waveguides, or other conductors, Converters, equipment, or facilities located in City and designed and constructed for the purpose of producing, receiving, transmitting, amplifying, or distributing audio, video, and data. System as defined herein shall not be inconsistent witl1 the definitions set forth in Minn. Stat. 238.02, subd. 3 and 47 U.S.C. ~ 522(7). f. "Class IV Cable Channel" means a signaling patl1 provided by a Cable System to transmit signals of any type from a Subscriber terminal to anotl1er point in the System. g. "Commercial Need" or "Marketplace Need" means such need or market demand which City and Grantee may jointly determine requires action or . performance by Grantee as specifically set forth in this Franchise. Such determination shall be based upon evidence and information presented by 2 . City, Grantee and other interested parties at a duly noticed public proceeding. Grantee shall have an opportunity to present evidence regarding the level of market demand, tl1e cost of meeting such demand and the availability of technologies to meet such demand. Any decision regarding Commercial or Marketplace Need which requires action by Grantee shall not be unreasonable. h. "Converter" means an electronic device which converts signals to a frequency acceptable to a television receiver of a Subscriber and by an appropriate selector pernnts a Subscriber to view all Subscriber signals included in tl1e service. i. "Drop" means tl1e cable that connects tl1e ground block on tl1e Subscriber's residence or institution to tl1e nearest feeder cable of tl1e System. j. "BX;," means the Federal Communications Commission and any legally appointed, designated or elected agent or successor. k. "Franchise" or "Cable Franchise" means this ordinance and the regulatory and contractual relationship established hereby. . 1. "Grantee" is MediaOne Nortl1 Central Communications Corp., its lawful successors, transferees or assignees. m. "Gross Revenues" means all revenue received directly or indirectly by the Grantee, its affiliates, subsidiaries, parent, or person in which Grantee has financial interest of five percent (5 %) or more, from the operation of its System within City including, but not limited to, all Cable Service fees, Franchise Fees, PEG Fees, late fees, Installation and reconnection fees, upgrade and downgrade fees, advertising revenue, Converter rental fees, Lockout Device fees, fees related to commercial and institutional usage of tl1e I-net, Internet access fees, cable modem service fees and interest. The term Gross Revenues shall not include any taxes on services furnished by Grantee inlposed by any municipality, state, or other governmental unit and collected by Grantee for such governmental unit. n. "Installation" means tl1e connection of tl1e System from feeder cable to the point of connection witl1 tl1e Subscriber Converter or other terminal equipment. o. "Institutional Network" or "I-net" means the discrete communications network and services related to such network provided by Grantee to identified institutions as required by this Franchise. . 3 . p. "Lockout Device" means an optional mechanical or electrical accessory to a Subscriber's terminal which inhibits the viewing of a certain program, certain channel, or certain channels provided by way of the Cable Communication System. q. "Memorandum of Understanding" or "MOll" means tl1at certain agreement dated November 3, 1994 regarding PEG access funding, creation of a "PEG Fee" and certain rate regulatory issues. r. "North Suburhs Access Corporation" means tl1at certain non-profit corporation or its lawful successor, designee, or assignee, which is delegated autl10rity and responsibility for providing certain community programming functions including public access. s. "North Suburban System" means tl1e Cable System located in tl10se municipalities collectively comprising tl1e North Suburban Cable Service territory as originally approved by the Minnesota Cable Communications Board. t. "Pay Television" means the delivery over the System of pay-per-channe1 or pay-per-program audio-visual signals to Subscribers for a fee or charge, . in addition to the charge for Basic Cable Service or Cable Programming Services. u. "Person" is any person, firm, partnership, association, corporation, company, or other legal entity. v. "Proposal" means tl1e Proposal for Franchise Renewal dated May 13, 1997, submitted to the North Suburban Cable Communications Commission by Group W Cable of the North Suburbs, Inc., as amended by the revised Renewal Proposal submitted under cover letter dated August, 4, 1997, and related correspondence and prior agreements or resolutions which are attached hereto as Exhibit A. w. "Ril1ht-of-Wav" or "Rights-of-Way" means the area on, below, or above any real property in City in which the City has an interest including, but not limited to any street, road, highway, alley, sidewalk, parkway, park, skyway, or any otl1er place, area, or real property owned by or under the control of City, including otl1er dedicated Rights-of-Way for travel purposes and utility easements. x. "Right-of-Way Ordinance"means the ordinance codifying requirements regarding regulation, management and use of Rights-of-Way in City, . including registration and permitting requirements. 4 . y. "Standard Installation" means any residential installation which can be completed using a Drop of 250 feet or less. z. "Subscriber" means any Person who lawfully receives service via the System. In the case of multiple office buildings or multiple dwelling units, the "Subscriber" means tl1e lessee, tenant or occupant. SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS 1. Grant of Franchise. This Franchise is granted pursuant to tl1e terms and conditions contained herein. Grantee shall comply witl1 all provisions of its Proposal, which is expressly incorporated herein by reference. Failure of Grantee to provide a System as described in its Proposal, or meet obligations and comply with all provisions tl1erein, shall be deemed a violation of this Franchise. 2. Grant of N onexclusive Authority. a. The Grantee shall have tl1e right and privilege, subject to tl1e permitting and other lawful requirements of City ordinance, rule or procedure, to . construct, erect, and maintain, in, upon, along, across, above, over and under the Rights-of-Way in City a Cable System and shall have the right and privilege to provide Cable Service. The System constructed and maintained by Grantee or its agents shall not interfere with other uses of the Rights-of-Way. Grantee shall make use of existing poles and other above and below facilities available to Grantee to tl1e extent it is technically and economically feasible to do so. b. Notwithstanding the above grant to use Rights-of-Way, no Right-of-Way shall be used by Grantee if City determines tl1at such use is inconsistent with the terms, conditions, or provisions by which such Right-of-Way was created or dedicated, or with the present use of the Right-of-Way. c. This Franchise shall be nonexclusive, and City reserves the right to grant a Franchise to any Person at any time during tl1e period of this Franchise for the provision of Cable Service. The terms and conditions of any such Franchise shall be, when taken as a whole, no less burdensome or more beneficial than those imposed upon Grantee pursuant to this Franchise. 3. Lease or Assignment Prohibited. No Person may lease Grantee's System for tl1e purpose of providing Service until and unless such Person shall have first obtained and shall currently hold a valid Franchise or otl1er lawful authorization containing . substantially sinlilar burdens and obligations to tl1is Franchise. Any assignment of 5 -------- . rights under this Franchise shall be subject to and in accordance with the requirements of Section 10, Paragraph 5. 4. Franchise Term. This Franchise shall be in effect for a period of fifteen (15) years from the date of acceptance by Grantee, unless sooner renewed, revoked or terminated as herein provided. 5. Previous Franchises. Upon acceptance by Grantee as required by Section 13 herein, this Franchise shall supersede and replace any previous Ordinance granting a Franchise to Grantee. 6. Compliance with Applicable Laws. Resolutions and Ordinances. a. The terms of this Franchise shall define the contractual rights and obligations of Grantee witl1 respect to tl1e provision of Cable Service and operation of the System in City. However, the Grantee shall at all tinles during tl1e term of this Franchise be subject to all lawful exercise of tl1e police power, statutory rights, local ordinance-making authority, and eminent domain rights of City. Except as provided below, any modification or amendment to this Franchise, or the rights or obligations contained herein, must be within the lawful exercise of City's police power, . in which case tl1e provision(s) modified or amended herein shall be specifically referenced in an ordinance of the City authorizing such amendment or modification. This Franchise may also be modified or amended with the written consent of Grantee as provided in Section 13.3 herein. b. Grantee shall comply witl1 tl1e terms of any City ordinance or regulation of general applicability which addresses usage of the Rights-of-Way within City which may have tl1e effect of superseding, modifying or amending tl1e terms of Section 3 and/or Section 8.5(c) herein, except that Grantee shall not, through application of such City ordinance or regulation of Rights-of- Way, be subject to additional burdens with respect to usage of Rights-of- Way which exceed burdens on similarly situated Rights-of-Way users. c. In tl1e event of any conflict between Section 3 and/or Section 8.5 (c) of this Franchise and any City ordinance or regulation which addresses usage of the Rights-of-Way, the conflicting terms in Section 3 and/or Section 8.5 (c) of this Franchise shall be superseded by such City ordinance or regulation, except that Grantee shall not, through application of such City ordinance or regulation of Rights-of-Way, be subject to additional burdens with respect to usage of Rights-of-Way which exceed burdens on similarly situated Rights-of-Way users. . 6 . d. In tl1e event any City ordinance or regulation which addresses usage of tl1e Rights-of-Way adds to, modifies, amends, or otherwise differently addresses issues addressed in Section 3 and/or Section 8.5 (c) of this Franchise, Grantee shall comply with such ordinance or regulation of general applicability, regardless of which requirement was first adopted except that Grantee shall not, t1rrough application of such City ordinance or regulation of Rights-of-Way, be subject to additional burdens with respect to usage of Rights-of-Way which exceed burdens on similarly situated Rights-of-Way users. e. In the event Grantee cannot determine how to comply with any Right-of- Way requirement of City, whetl1er pursuant to this Franchise or other requirement, Grantee shall immediately provide written notice of such question, including Grantee's proposed interpretation, to the City witl1 copy to tl1e North Suburban Cable Communications Commission, in accordance witl1 Section 2.9. The City or Commission shall provide a written response within fourteen (14) days of receipt indicating how the requirements cited by Grantee apply. Grantee may proceed in accordance with its proposed interpretation in the event a written response is not received within seventeen (17) days of mailing or delivering such written question. . 7. Rules of Grantee. The Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing tl1e conduct of its business as shall be reasonably necessary to enable said Grantee to exercise its rights and perform its obligations under this Franchise and to assure uninterrupted service to each and all of its Subscribers; provided tl1at such rules, regulations, teffi1S and conditions shall not be in conflict with provisions hereto, tl1e rules of tl1e FCC, the laws of tl1e State of Minnesota, City, or any other body having lawful jurisdiction. 8. Territorial Area Involved. This Franchise is granted for the corporate boundaries of City, as it exists from time to time. In the event of annexation by City, or as development occurs, any new territory shall become part of the territory for which tl1is Franchise is granted provided, however, that Grantee shall not be required to extend service beyond its present System boundaries unless there is a minimum of 50 homes per cable mile for underground plant and 35 homes per cable mile for overhead plant. Access to cable service shall not be denied to any group of potential residential cable Subscribers because of tl1e income of the residents of tl1e area in which such group resides. Grantee shall be given a reasonable period of time to construct and activate cable plant to service annexed or newly developed areas but in no event not to exceed twelve (12) montl1s from notice thereof by City to Grantee and qualification pursuant to the density requirements of this Subsection 8. . 9. 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 7 . officer of Grantee or City's Administrator of this Franchise or forty-eight (48) hours after it is deposited in tl1e United States mail in a sealed envelope, with registered or certified mail postage prepaid tl1ereon, addressed to the party to whom notice is being given, as follows: If to City: City of Arden Hills 4364 W. Round Lake Road Arden Hills, Minnesota 55112 Attention: City Manager/Administrator With copies to: North Suburban Cable Communications Commission 950 W oodhill Drive Roseville, Minnesota 55113 And to: Thomas D. Creighton, Esq. and Robert J. V. Vose, Esq. Bernick and Lifson, P.A. 5500 Wayzata Boulevard, Suite 1200 Minneapolis, Minnesota 55416 If to Grantee: General Manager MediaOne . 950 Woodhill Drive Roseville, Minnesota 55113 With copies to: John F. Gibbs, Esq. Robins, Kaplan, Miller & Ciresi, L.L.P. 2800 LaSalle Plaza 800 LaSalle Ave. So. Minneapolis, Minnesota 55402 Such addresses may be changed by either party upon notice to the other party given as provided in tl1is Section. 10. Suhscriber Network Drops to Desill'nated Buildings. Grantee shall provide, free of charge, Installation of one (1) subscriber network Drop, one (1) cable outlet, one (1) Converter, if necessary, and monthly Basic Cable Service witl10ut charge to the institutions identified on Exhibit B attached hereto and made a part hereof, and such other public or educational institutions subsequently designated by City which is located five hundred (500) feet or less from the existing Subscriber network. Any such institution located more than five hundred (500) feet shall be connected if such institution agrees to reinlburse Grantee for Grantee's actual costs in excess of the five hundred (500) foot installation actual costs. . Additional subscriber network Drops and/or outlets in any of tl1e locations identified on Exhibit B will be installed by Grantee at the cost of Grantee's time 8 . and material. Alternatively, said institution may add outlets at its own expense, as long as such Installation meets Grantee's standards. Grantee shall have three (3) montl1s from the date of City designation of additional institution(s) to complete construction of tl1e Drop and outlet unless weather or other conditions beyond tl1e control of Grantee requires more time. The provision of Institutional Network service is addressed in Section 7 herein. SECTION 3. CONSTRUCTION STANDARDS 1. Rell'istration. Permits and Construction Codes. a. Grantee shall strictly adhere to all state and local laws and building and zoning codes currently or hereafter applicable to location, construction, installation, operation or maintenance of the System in City and give due consideration at all times to the aesthetics of the property. b. Failure to obtain permits or comply with permit requirements shall be grounds for revocation of tl1is Franchise, or any lesser sanctions provided herein or in any otl1er applicable law. . 2. Rt:Pair of Rights-of-Way and Propertv. Any and all Rights-of-Way, or public or private property, which are disturbed or damaged during the construction, repair, replacement, relocation, operation, maintenance, expansion, extension or reconstruction of the System shall be promptly and fully restored by Grantee, at its expense, to the same condition as that prevailing prior to Grantee's work, as determined by City. If Grantee shall fail to promptly perform tl1e restoration required herein, after written request of City and reasonable opportunity to satisfy that request, City shall have tl1e right to put tl1e Rights-of-Way, public, or private property back into good condition. In tl1e event City determines tl1at Grantee is responsible for such disturbance or damage, Grantee shall be obligated to fully reimburse City for such restoration. 3. Conditions on Rif.!ht-of-Way Use. a. Nothing in this Franchise shall be construed to prevent City from constructing, maintaining, repairing or relocating sewers; grading, paving, maintaining, repairing, relocating and/or altering any Right-of-Way; constructing, laying down, repairing, maintaining or relocating any water mains; or constructing, maintaining, relocating, or repairing any sidewalk or other public work. . b. All System transmission and distribution structures, lines and equipment erected by the Grantee witl1in City shall be located so as not to obstruct or 9 . interfere witl1 the use of Rights-of-Way except for normal and reasonable obstruction and interference which might occur during construction and to cause minimum interference witl1 the rights of property owners who abut any of said Rights-of-Way and not to interfere with existing public utility installations. c. If at any time during the period of this Franchise City shall elect to alter or change the grade or location of any Right-of-Way, the Grantee shall, at its own expense, upon reasonable notice by City, remove and relocate its poles, wires, cables, conduits, manholes and other fixtures of the System, and in each instance comply with the reasonable and lawful standards and specifications of City. d. The Grantee shall not place poles, conduits, or other fixtures of System above or below ground where the same will interfere with any gas, electric, telephone, water or other utility fixtures and all such poles, conduits, or other fIxtures placed in any Right-of-Way shall be so placed as to comply with all reasonable and lawful requirements of City. e. The Grantee shall, upon request of any Person holding a moving permit issued by City, temporarily move its wires or fixtures to permit the moving . of buildings with tl1e expense of such temporary removal to be paid by the Person requesting the same, and tl1e Grantee shall be given not less than ten (10) days advance written notice to arrange for such temporary changes. f. The Grantee shall have the authority to trim any trees upon and overhanging the Rights-of-Way of City so as to prevent the branches of such trees from coming in contact with tl1e wires and cables or other facilities of the Grantee. g. Grantee shall use its best efforts to give reasonable prior notice to any adjacent private property owners who will be negatively affected or impacted by Grantee's work in the Rights-of-Way. 4. Underf.!rounding of Cable. Unless otherwise required by action of City Council, Grantee must place newly constructed facilities underground in areas of City where all other utility lines are placed underground. Amplifier boxes and pedestal mounted terminal boxes may be placed above ground if existing technology reasonably requires, but shall be of such size and design and shall be so located as not to be unsightly or unsafe, all pursuant to plans submitted with Grantee's permit application(s) and approved by City. 5. Installation of Facilities. No poles, conduits, amplifier boxes, pedestal mounted . terminal boxes, similar structures, or other wire-holding structures shall be erected or installed by tl1e Grantee without required permit of City. 10 . 6. Safety Requirements. a. The Grantee shall at all times employ ordinary and reasonable care and shall install and maintain in use notl1ing less than commonly accepted metl10ds and devices for preventing failures and accidents which are likely to cause damage or injuries. b. The Grantee shall install and maintain its System and other equipment in accordance witl1 City's codes and tl1e requirements of tl1e National Electric Safety Code and all otl1er applicable FCC, state and local regulations, and in such manner that they will not interfere with City communications technology related to health, safety and welfare of the residents. c. All System structures, and lines, equipment and connections in, over, under and upon the Rights-of-Way of City, wherever situated or located, shall at all times be kept and maintained in good condition, order, and repair so that the same shall not menace or endanger the life or property of City or any Person. SECTION 4. . DESIGN PROVISIONS 1. System Upgrade: Minimum Channel Capacity. a. Grantee shall develop, construct and operate for the term of this Franchise a System providing 750 MHz capacity and which is fully activated willi the capability of delivering to all Subscribers capable of receiving them a minimum of up to 81 video programmed channels. Construction will be completed and channels activated as described in Exhibit C attached. b. The System will utilize a hybrid fiber-coaxial architecture as detailed in the Proposal. In addition, the System will be designed with tl1e capability to transmit return signals upstream in the 5 - 40 MHz spectrum which shall be activated as Commercial Need dictates. Finally, in conjunction witl1 the upgrade, Grantee shall replace all existing headend equipment witl1 state-of- the-art standard frequency headend equipment. c. Grantee shall develop, construct and operate a System capable of providing non-video services such as high-speed data transmission, Internet access, and other competitive services which shall be activated as Marketplace Need dictates. Grantee may use 200 MHz of the total 750 MHz System capacity for tl1e provision of such services. . 11 . d. During tl1e design, walkout and preliminary construction activities related to upgrade of the System, Grantee shall seek to identify tl1e non-video interests of the business community witl1in City and will seek to quantify business community demand for non-video services. Grantee shall report the results of its investigation into business demand for non-video services to the City or its designee no later tl1an one (1) year from the commencement date of the Franchise. e. All final programming decisions remain the discretion of Grantee in accordance witl1 tl1e Proposal, provided tl1at Grantee notifies City and Subscribers in writing thirty (30) days prior to any channel additions, deletions, or realignments, and further subject to Grantee's signal carriage obligations hereunder and pursuant to 47 U.S.C. ~ 531-536, and further subject to City's rights pursuant to 47 U.S.C. ~ 545. Location and relocation of the PEG Channels shall be governed by Section 6, 1. (c). 2. Construction Timetable. a. Grantee shall complete all construction related to the System upgrade required by Section 4 herein on or before November 30, 2000, in accordance with the specific time1ine identified in Exhibit C attached. . Failure to timely complete such construction shall be a violation of this Franchise. b. The System, once upgraded, shall continue to offer Service to all dwelling units serviceable prior to upgrade and shall extend Service to any area within the corporate boundaries of City which was not previously constructed which exceeds a density of 35 dwelling units per cable mile or greater for overhead plant and 50 dwelling units per cable mile for underground plant. c. Witl1in ninety (90) days after tl1e commencement of the renewal term of tl1is Franchise, Grantee shall commence application for all necessary permits, licenses, certificates and authorizations which are required in the conduct of its business. Failure to timely commence application for the aforementioned authorizations shall be a violation of this Franchise. d. Within ninety (90) days after commencement of the term of this renewed Franchise, Grantee will commence System design, walkout and all other preliminary construction activities related to upgrade of the System and shall give written notice thereof to City upon commencement of such activities. . 3. Interruption of Service. The Grantee shall interrupt service only for good cause and for the shortest time possible. Such interruption shall occur during periods of 12 . minimum use of the System. If service is interrupted for a total period of more than forty eight (48) hours in any tl1irty (30) day period, Subscribers shall be credited pro rata for such interruption. 4. Technical Standards. The technical standards used in tl1e operation of the System shall comply, at minimum, witl1 tl1e technical standards promulgated by tl1e FCC relating to Cable Systems pursuant to Title 47, Section 76.601 to 76.617, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. 5. Special Testing. a. The City shall have tl1e right to inspect all construction or installation work performed pursuant to the provisions of the Franchise. In addition, the City may require special testing of a location or locations within the System if there is a particular matter of controversy or umeso1ved complaints regarding such construction or installation work or pertaining to such 10cation(s). Demand for such special tests may be made on the basis of complaints received or otl1er evidence indicating an unteso1ved controversy or noncompliance. Such tests shall be limited to the particular matter in controversy or umeso1ved complaints. The City shall endeavor to so . arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers caused by such testing. b. Before ordering such tests, Grantee shall be afforded thirty (30) days following receipt of written notice to investigate and, if necessary, correct problems or complaints upon which tests were ordered. The City shall meet with Grantee prior to requiring special tests to discuss the need for such and, if possible, visually inspect those locations which are the focus of concern. If, after such meetings and inspections, City wishes to commence special tests and the thirty (30) days have elapsed without correction of tl1e matter in controversy or umeso1ved complaints, the tests shall be conducted at Grantee's expense by a qualified engineer selected by City and Grantee, and Grantee shall cooperate in such testing. 6. Drop Testinf.! and Replacement. Grantee shall insert a 750 MHz carrier at a level lOdb below the video carriers that will be measured by Grantee as a normal procedure during all service calls. In addition, the Drops and related passive equipment will be inspected during Installations to assure tl1at tl1e Drop and passive equipment can pass the full 750 MHz System capacity. In the event measurement of the carrier or the inspection demonstrate that a Drop or associated passive equipment do not pass the full 750 MHz, the Subscriber address will be recorded by Grantee and Grantee shall provide City, or its designee, upon request a report . indicating the addresses where Drops or associated passive equipment have failed. Grantee shall replace all failing Drops and/or associated passive equipment at the 13 I . tinle the address upgrades service to a level which requires a signal above tl1e 550 MHz spectrum at no separate charge to the individual subscriber. 7. FCC Reports. The results of any tests required to be filed by Grantee with tl1e FCC shall upon request of City also be filed witl1 the City or its designee within ten (10) days of the conduct of such tests. 8. Interconnection. The System servicing tl1e Cities of Arden Hills, Falcon Heights, Lauderdale, Little Canada, Mounds View, New Brighton, North Oaks, Roseville, St. Anthony, and Shoreview shall continue to be completely interconnected. In addition, Grantee shall make available for interconnection purposes one (1) six (6) MHz channel for forward video purposes, one (1) six (6) MHz channel for return video purposes, one (1) six (6) MHz channel for forward data or other purposes, and one (I) six (6) MHz channel for return data or other purposes between all Systems adjacent to tl1e North Suburban System and under common ownership witl1 Grantee. 9. Nonvoice Return Capability. Grantee is required to use cable and associated electronics having the technical capacity for nonvoice return communications. 10. Lockout Device. Upon tl1e request of a Subscriber, Grantee shall make available . a Lockout Device at no additional charge to Subscribers. SECTION 5. SERVICE PROVISIONS 1. Regulation of Service Rates. a. The City may regulate rates for tl1e provision of Cable Service, equipment, or any otl1er communications service provided over tl1e System to the extent allowed under federal or state law(s). City reserves the right to regulate rates for any future services to the extent permitted by law. b. Grantee shall give City and Subscribers written notice of any change in a rate or charge at least one billing cycle prior to the effective date of the change. Bills must be clear, concise, and understandable, with itemization of all charges. 2. Non-Standard Installations. Grantee shall install and provide Cable Service to any Person requesting other than a Standard Installation provided that said Cable Service can meet FCC technical specifications and all payment and policy obligations are met. In such case, Grantee may charge for tl1e incremental increase . in material and labor costs incurred beyond tl1e Standard Installation. 14 --------- . 3. Sales Procedures. Grantee shall not exercise deceptive sales procedures when marketing any of its services within City. In its initial communication or contact with a non-Subscriber and in all general solicitation materials marketing the Grantee or its services as a whole, Grantee shall inform the non-Subscriber of all levels of service available, including the lowest priced and free service tiers. Grantee shall have the right to market door-to-door during reasonable hours consistent witl1local ordinances and regulation. 4. Suhscriber InQlliry and Complaint Procedures. a. Grantee shall have a publicly listed toll-free telephone number which shall be operated so as to receive Subscriber complaints and requests on a twenty-four (24) hour-a-day, seven (7) days-a-week, 365 days a year basis. During normal business hours, trained representatives of Grantee shall be available to respond to Subscriber inquiries. b. Grantee shall maintain adequate numbers of telephone lines and personnel to respond in a timely manner to schedule service calls and answer Subscriber complaints or inquiries in a manner consistent with regulations adopted by the FCC and City where applicable and lawful. Under normal operating conditions, telephone answer time by a customer representative, - including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less than ninety (90) percent of the time under normal operating conditions, measured on a quarterly basis. Under normal operating conditions, the customer will receive a busy signa11ess than three (3) percent of the time. Grantee shall respond to written complaints with copy to City or its designee within thirty (30) days. c. Subject to Grantee's obligations pursuant to law regarding privacy of certain information, Grantee shall prepare and maintain written records of all complaints received from City and the resolution of such complaints, including tl1e date of such resolution. Such written records shall be on file at the office of Grantee. Grantee shall provide City witl1 a written summary of such complaints and tl1eir resolution upon request of City. As to Subscriber complaints, Grantee shall comply with FCC record-keeping regulations, and make tl1e results of such record-keeping available to City upon request. d. Subscriber requests for repairs shall be performed within thirty-six (36) hours of the request unless conditions beyond the control of Grantee prevent such performance. Grantee may schedule appointments for . Installations and other service call eitl1er at a specific time or, at a maximum, during a four hour time block during normal business hours. 15 ----.--- . Grantee may also schedule service calls outside normal business hours for the convenience of customers. Grantee shall use its best efforts to not cancel an appointment with a customer after tl1e close of business on the business day prior to the scheduled appointment. If the installer or technician is late and will not meet the specified appointment time, he/she must use his/her best efforts to contact the customer and reschedule the appointment at the sole convenience of the customer. Service call appointments must be met in a manner consistent with FCC standards. 5. Subscriber Contracts. Grantee shall file with City any standard form Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall file with the City a document completely and concisely stating the lengtl1 and terms of the Subscriber contract offered to customers. The length and terms of any Subscriber contract(s) shall be available for public inspection during normal business hours. 6. Refund Policy. In the event a Subscriber establishes or terminates service and receives less tl1an a full month's service, Grantee shall prorate tl1e monthly rate on tl1e basis of tl1e number of days in tl1e period for which service was rendered to the number of days in the billing. . 7. Late Fees. Fees for the late payment of bills shall not be assessed until after the service has been fully provided and, as of the due date of the bill notifying Subscriber of an unpaid balance, the bill remains unpaid. Late Fees may not exceed the actual costs to Grantee of late payment of bills and the servicing and collecting of such accounts. 8. Office Po1icv. Grantee shall maintain a location in City or tl1e Franchise territory encompassing any joint regulatory body of which City is a Member for receiving Subscriber inquiries and bill payments. The location must be staffed by a person capable of receiving inquiries and bill payments. In addition, Grantee shall maintain a local drop box for receiving Subscriber payments after hours. SECTION 6. ACCESS CHANNEL(S) PROVISIONS 1. Public Educational and Government Access. a. City or its designee is hereby designated to operate, administer, promote, and manage access (public, education, and government progran1lliing) (hereinafter "PEG access") progran1lliing on tl1e Cable System. . b. Grantee shall dedicate 12 channel(s) for PEG access and community programming use in accordance with tl1e Proposal. All residential 16 I . Subscribers who receive all or any part of the total services offered on the System shall be eligible to receive such channels at no additional charge. The channel(s) shall be activated upon the effective date of this Franchise and thereafter maintained. City may rename, reprogram, or otl1erwise change the use of these channels in its sole discretion, provided such use is non-commercial, lawful, and retains the general purpose of the provision of community programming. Nothing herein shall diminish the City's rights to secure additional channels pursuant to Minn. Stat. !l 238.084, which is expressly incorporated herein by reference. City shall provide ninety (90) days prior written notice to Grantee of City's intent to activate access channels. c. Each public and government access channel(s) required by this Section shall retain the channel designation/number it had as of the commencement of this Franchise term. Grantee may not move or otherwise change tl1e channel number or location of any public or government access or community program channel witl10ut tl1e written approval of the City or its designee. Upon six (6) months notice to City, any other access channel may be moved by Grantee, but in no event more than once every two (2) years unless otherwise allowed by City, provided Grantee pays all reasonable costs or expenses arising out of tl1e channel move including, but t not limited to, equipment necessary to effect the change at tl1e programmer's production or receiving facility (school frequency routing equipment, etc.), signage, letterhead, business cards, and reasonable marketing or other constituency notification costs. In any event, those access channels carried on tl1e universal service tier pursuant to the MOD shall remain on the universal service tier. This paragraph shall not apply to Regional Channel 6. 2. Char~es for Use. Channel tinle and playback of prerecorded programming on tl1e PEG access and community program channe1(s) must be provided without charge to City and the public. 3. Access Rules. City, or its designee, shall implement rules for use of any access channel(s). 4. Access SUDDort. Grantee shall continue to be obligated pursuant to the MOU, and shall additionally provide $667,286.00 over the term of this Franchise for tl1e acquisition of new equipment according to the schedule in Exhibit A attached. 5. Studio Relocation. In addition to the agreement between the City and Grantee regarding tl1e Nortl1 Suburbs Access Corporation relocation pursuant to the access transfer agreement, the following shall apply: If N ortl1 Suburbs Access . Corporation expends, with Grantee's express written consent which may not be unreasonably withheld, over $1,000.00 to remodel or renovate its leasehold in a 17 . twelve (12) month period and Grantee thereafter requires North Suburbs Access Corporation to move studio locations, Grantee shall reimburse North Suburbs Access Corporation 100 % of its expenditures if tl1e request to move is within one (1) year of the expense of North Suburbs Access Corporation. Said reimbursement shall be decreased by 20 % for each year tl1e expense was incurred prior to the date North Suburbs Access Corporation is required to move. 6. Ref.!ional Channel 6. Grantee shall designate standard VHF Channel 6 for uniform regional channel usage. 7. State and Federal Law compliance. Satisfaction of tl1e requirements of this Section 6 satisfies any and all of Grantee's state and federal law requirements of Grantee with respect to PEG access. SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS 1. Ca\lacitv. a. Grantee shall provide an Institutional Network with 54 channel capacity (16 ~ upstream channels and 38 downstream channels) in the 5-450 MHz spectrum, all in accordance with tl1e Proposal. All institutions designated on Exhibit B attached hereto and made a part hereof shall be connected to the Institutional Network along with any new City Hall which may be constructed by City or to which City may otherwise move its government offices or City Council meeting locations. Otl1er public or educational institutions subsequently designated by City shall be connected to tl1e Institutional Network if the designated institution is located less than five hundred (500) feet from the existing Institutional Network, or if such designated institution agrees to reimburse Grantee for Grantee's actual costs in excess of the five hundred (500) foot installation actual costs. b. All institutions designated on Exhibit B attached shall be allowed to make use of the full channel capacity for video uses at no charge. The institutions designated on Exhibit B attached may make use of tlrree (3)-6 MHz channels downstream and three (3)-6 MHz channels upstream for non-video uses at no charge. c. Grantee shall construct and thereafter maintain fiber optics to tl1e Institutional Network nodes which shall include two (2) fibers to transmit tl1e fifty-four (54) channels required in subparagraph a. above, and four (4) additional fibers which are expressly for tl1e use of the institutions listed in . Exhibit B. 18 -- . Charges to designated institutions for non-video use of the channels other than tl1e six (6) non-video dedicated channels (three (3) upstream and thtee (3) downstream) on tl1e Institutional Network required in subparagraph a. above shall be calculated based on Grantee's actual cost plus a 45 % margin or the "most favored comparable user rate" , whichever is lower. Charges to tl1e designated institutions for video or non-video use of tl1e six (6) fibers provided to tl1e Institutional Network nodes shall be calculated based only upon Grantee's incremental actual cost for providing tl1e additional six (6) fibers. Use of the Institutional Network by a designated institution is limited to its own use(s) and no institution may sell Institutional Network capacity or usage to any third party, witl10ut the express written consent of Grantee. 2. Grantee's Use of Cavacitv. Grantee may use available capacity on the fifty-four (54) channel Institutional Network required in Paragraph 1a. above for other uses including commercial uses, provided, however, fuat usage of seventy-five percent (75 %) of such capacity by designated institutions shall have priority over other uses subject to rules or policies adopted by Grantee and approved in advance by City. Further, should City determine that any portion of Grantee's use of tl1e twenty-five percent (25 %) should be terminated to accomodate tl1e use by a ~ designated institution for video purposes, City may direct that Grantee terminate its use at the expiration of any third party use contract or three (3) years, whichever is sooner. 3. End-User Equipment. a. Designated institutions shall be generally responsible for providing their own end-user equipment. However, Grantee shall provide at no charge twenty (20) new modulators for City and/or designated institutions use of the Institutional Network, all as approved by the City. b. With respect to non-video end-user equipment, upon request by a designated institution, Grantee must either lease tl1e equipment requested to the requesting institution or make reasonable efforts to arrange for tl1e lease of such equipment. Within 30 days of a written request, Grantee must notify tl1e requesting institution in writing of its ability or inability to lease the requested equipment and tl1e terms of such lease. The City, its designee, or the requesting institution may purchase or lease the equipment from any vendor. c. In addition, Grantee will provide standby power for the Institutional Network, provide fifteen (15) new pilot generators, re-tune ten (10) . existing return pilot generators, and re-tune one hundred twenty-four 124 existing return amplifiers. 19 I . 4. Service Standards. Grantee shall maintain those technical and performance standards as are detailed in Exhibit D attached. Grantee shall provide the City, or its designee, upon request with reports of the performance of tl1e I-Net and Grantee's compliance with the technical and performance standards. SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS 1. Administration of Franchise. The City Administrator or other designee shall have continuing regulatory jurisdiction and supervision over the System and tl1e Grantee's operation under the Franchise. The City, or its designee, may issue such reasonable rules and regulations concerning the construction, operation and maintenance of the System as are consistent with the provisions of the Franchise and law. 2. De1eg-ated Authority. The City may appoint a citizen advisory body or a Joint Powers Commission, or may delegate to any other body or Person authority to administer the Franchise and to monitor the performance of the Grantee pursuant to the Franchise. Grantee shall cooperate with any such delegatee of City. ~ 3. Franchise Fee. a. During tl1e term of the Franchise, Grantee shall pay quarterly to City or its delegatee a Franchise Fee in an amount equal to five percent (5 %) of its quarterly Gross Revenues, or such otl1er amounts as are subsequently permitted by federal statute. b. Any payments due under this provision shall be payable quarterly. The payment shall be made within thirty (30) days of the end of each of Grantee's fiscal quarters together with a report showing the basis for the computation. c. All amounts paid shall be subject to audit and recomputation by City and acceptance of any payment shall not be construed as an accord that the amount paid is in fact the correct amount. 4. Access to Records. The City shall have the right to inspect, upon reasonable notice and during normal business hours, or require Grantee to provide within a reasonable time copies of any records maintained by Grantee which relate to System operations including specifically Grantee's accounting and financial records. . 20 - ----- . 5. Reports and Maps to be Filed with City. a. Grantee shall file with the City, at the time or payment of the Franchise Fee, a report of all Gross Revenues in form and substance as required by City. b. Grantee shall prepare and furnish to City, at tl1e tinles and in the form prescribed, such other reasonable reports with respect to Grantee's operations pursuant to tl1is Franchise as City may require. c. If required by City, Grantee shall furnish to and file with City Administrator the maps, plats, and permanent records of the location and character of all facilities constructed, including underground facilities, and Grantee shall file with City updates of such maps, plats and permanent records annually if changes have been made in the System. 6. Periodic Evaluation. a. The City may require evaluation sessions at any time during tl1e term of this Franchise, upon fifteen (15) days written notice to Grantee. . b. Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System performance, programming offered, access channels, facilities and support, municipal uses of cable, subscriber rates, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics City deems relevant. c. As a result of a periodic review or evaluation session, upon notification from City, Grantee shall meet witl1 city and undertake good faith efforts to reach agreement on changes and modifications to the terms and conditions of tl1e Franchise which are both economically and technically feasible. SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS 1. Performance Bond. a. At tl1e tinle the Franchise becomes effective and at all times tl1ereafter, until tl1e Grantee has liquidated all of its obligations witl1 City, the Grantee shall furnish a bond to City in the amount of $500,000.00 in a form and with such sureties as reasonably acceptable to City. This bond will be . conditioned upon the faithful performance by the Grantee of its Franchise obligations and upon the furtl1er condition tl1at in the event the Grantee 21 ----- ------- . shall fail to comply with any law, ordinance or regulation governing the Franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by City as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the Grantee, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond, and further guaranteeing payment by tl1e Grantee of clainls, liens and taxes due City which arise by reason of tl1e construction, operation, or maintenance of the System. The rights reserved by City with respect to tl1e bond are in addition to all other rights City may have under the Franchise or any other law. City may, from year to year, in its sole discretion, reduce the amount of tl1e bond. b. The tinle for Grantee to correct any violation or liability, shall be extended by City if tl1e necessary action to correct such violation or liability is, in tl1e sole determination of City, of such a nature or character as to require more than thirty (30) days within which to perform, provided Grantee provides written notice that it requires more tl1an thirty (30) days to correct such violations or liability, commences the corrective action witl1in the thirty (30) days period and tl1ereafter uses reasonable diligence to correct the violation or liability. . c. In tl1e event this Franchise is revoked by reason of default of Grantee, City shall be entitled to collect from the performance bond that amount which is attributable to any damages sustained by City as a result of said default or revocation. d. Grantee shall be entitled to the return of the performance bond, or portion thereof, as remains sixty (60) days after the expiration of the term of the Franchise or revocation for default thereof, provided City has not notified Grantee of any actual or potential damages incurred as a result of Grantee's operations pursuant to the Franchise or as a result of said default. e. The rights reserved to City with respect to the performance bond 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 the performance bond shall affect any otl1er right City may have. 2. Letter of Credit. a. At the time of acceptance of this Franchise, Grantee shall deliver to City an irrevocable and unconditional Letter of Credit, in form and substance acceptable to City, from a National or State bank approved by City, in the . amount of $25,000.00. 22 . b. The Letter of Credit shall provide that funds will be paid to City, upon written demand of City, and in an amount solely determined by City in payment for penalties charged pursuant to this Section, in payment for any monies owed by Grantee to City or any person pursuant to its obligations under this Franchise, or in payment for any damage incurred by City or any person as a result of any acts or omissions by Grantee pursuant to this Franchise. c. In addition to recovery of any monies owed by Grantee to City or any person or damages to City or any person as a result of any acts or omissions by Grantee pursuant to tl1e Franchise, City in its sole discretion may charge to and collect from tl1e Letter of Credit tl1e following penalties: i. For failure to tinlely complete System upgrades as provided in this Franchise unless City approves the delay, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. ii. For failure to provide data, documents, reports or information or to cooperate witl1 City during an application process or system review or as otl1erwise provided herein, the penalty shall be $250.00 per . day for each day, or part tl1ereof, such failure occurs or continues. 111. Fifteen (15) days following notice from City of a failure of Grantee to comply witl1 construction, operation or maintenance standards, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. iv. For failure to provide the services Grantee has proposed, including, but not limited to, tl1e inlp1ementation and the utilization of the access channels and the maintenance and/or replacement of the equipment and otl1er facilities, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. v. For Grantee's breach of any written contract or agreement with or to tl1e City or its designee, tl1e penalty shall be $500.00 per day for each day, or part thereof, such breach occurs or continues. vi. For failure to comply witl1 any of the provisions of this Franchise, or otl1er City ordinance for which a penalty is not otherwise specifically provided pursuant to tl1is paragraph c, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. . 23 . d. Each violation of any provision of tl1is Franchise shall be considered a separate violation for which a separate penalty can be imposed. e. Whenever City finds that Grantee has violated one or more terms, conditions or provisions of this Franchise, or for any other violation contemplated in Subparagraph c. above, a written notice shall be given to Grantee informing it of such violation. At any time after thirty (30) days (or such longer reasonable time which, in tl1e sole determination of City, is necessary to cure the alleged violation) following local receipt of notice, provided Grantee remains in violation of one or more terms, conditions or provisions of this Franchise, in the sole opinion of City, City may draw from tl1e Letter of Credit all penalties and otl1er monies due City from tl1e date of tl1e local receipt of notice. f. Whenever the Letter of Credit is drawn upon, Grantee may, within seven (7) days of such draw, notify City in writing that tl1ere is a dispute as to whether a violation or failure has in fact occurred. Such written notice by Grantee to City shall specify with particularity the matters disputed by Grantee. All penalties shall continue to accrue and City may continue to draw from the Letter of Credit during any appeal pursuant to this subparagraph f. . i. City shall hear Grantee's dispute within sixty (60) days and render a final decision witl1in sixty (60) days thereafter. ii. Upon the determination of City that no violation has taken place, City shall refund to Grantee, witl10ut interest, all monies drawn from the Letter of Credit by reason of the alleged violation. g. If said Letter of Credit or any subsequent Letter of Credit delivered pursuant tl1ereto expires prior to thirty (30) montl1s after the expiration of the term of this Franchise, it shall be renewed or replaced during the term of this Franchise to provide that it will not expire earlier tl1an tl1irty (30) montl1s after the expiration of tl1is Franchise. The renewed or replaced Letter of Credit shall be of the same form and with a bank authorized herein and for the full amount stated in Paragraph A of this Section. h. If City draws upon the Letter of Credit or any subsequent Letter of Credit delivered pursuant hereto, in whole or in part, Grantee shall replace or replenish to its full amount tl1e same witl1in ten (10) days and shall deliver to City a like replacement Letter of Credit or certification of replenishment for the full amount stated in Section 9.2 (a) as a substitution of the previous Letter of Credit. This shall be a continuing obligation for any draws upon . the Letter of Credit. 24 . i. If any Letter of Credit is not so replaced or replenished, City may draw on said Letter of Credit for the whole amount tl1ereof and use the proceeds as City determines in its sole discretion. The failure to replace or replenish any Letter of Credit may also, at tl1e option of tl1e City, be deemed a default by Grantee under this Franchise. The drawing on tl1e Letter of Credit by City, and use of tl1e money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. J. The collection by City of any damages, monies or penalties from the Letter of Credit shall not affect any other right or remedy available to City, nor shall any act, or failure to act, by City pursuant to the Letter of Credit, be deemed a waiver of any right of City pursuant to this Franchise or otherwise. 3. Indemnification of City. a. City, its officers, boards, committees, commissions, elected officials, employees and agents shall not be liable for any loss or damage to any real or personal property of any Person, or for any injury to or deatl1 of any Person, arising out of or in connection with Grantee's construction, . operation, maintenance, repair or removal of the System or as to any other action of Grantee with respect to tl1is Franchise. b. Grantee shall indenmify, defend, and hold harmless City, its officers, boards, committees, commissions, elected officials, employees and agents, from and against all liability, damages, and penalties which they may legally be required to pay as a result of tl1e City's exercise, administration, or enforcement of the Franchise. c. Nothing in this Franchise relieves a Person, except City, from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while performing work connected witl1 grading, regarding, or changing tl1e line of a Right-of-Way or public place or with the construction or reconstruction of a sewer or water system. 4. Insurance. a. As a part of the indemnification provided in Section 8.3, but without limiting the foregoing, Grantee shall file with City at the time of its acceptance of this Franchise, and at all times tl1ereafter maintain in full force and effect at its sole expense, a comprehensive general liability insurance policy, including broadcaster' sf cablecaster' s liability and . contractual liability coverage, in protection of tl1e Grantee, and the City, its officers, elected officials, boards, commissions, agents and employees 25 . for any and all damages and penalties which may arise as a result of this Franchise. The policy or policies shall name the City as an additional insured, and in their capacity as such, City officers, elected officials, boards, commissions, agents and employees. b. The policies of insurance shall be in tl1e sum of not less tl1an $1,000,000.00 for personal injury or death of anyone Person, and $2,000,000.00 for personal injury or death of two or more Persons in anyone occurrence, $500,000.00 for property damage to anyone person and $2,000,000.00 for property damage resulting from anyone act or occurrence. c. The policy or policies of insurance shall be maintained by Grantee in full force and effect during the entire term of tl1e Franchise. Each policy of insurance shall contain a statement on its face that the insurer will not cancel the policy or fail to renew the policy, whether for nonpayment of premium, or otl1erwise, and whetl1er at tl1e request of Grantee or for other reasons, except after sixty (60) days advance written notice have been provided to City. SECTION 10. . SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE 1. City's Rill'ht to Revoke. a. In addition to all other rights which City has pursuant to law or equity, City reserves tl1e right to commence proceedings to revoke, terminate or cancel this Franchise, and all rights and privileges pertaining thereto, if it is determined by City that: i. Grantee has violated material provisions(s) of this Franchise; or 11. Grantee has attempted to evade any of tl1e provisions of the Franchise; or Ill. Grantee has practiced fraud or deceit upon City. City may revoke this Franchise without the hearing required by 9.2(b) herein if Grantee is adjudged a bankrupt. 2. Procedures for Revocation. a. City shall provide Grantee with written notice of a cause for revocation and . tl1e intent to revoke and shall allow Grantee thirty (30) days subsequent to receipt of tl1e notice in which to correct the violation or to provide adequate 26 . assurance of performance in compliance with tl1e Franchise. In the notice required herein, City shall provide Grantee with the basis of the revocation. b. Grantee shall be provided tl1e right to a public hearing affording due process before the City Council prior to the effective date of revocation, which public hearing shall follow the thirty (30) day notice provided in subparagraph (a) above. City shall provide Grantee with written notice of its decision together with written findings of fact supplementing said decision. c. Only after the public hearing and upon written notice of the determination by City to revoke tl1e Franchise may Grantee appeal said decision witl1 an appropriate state or federal court or agency. d. During the appeal period, the Franchise shall remain in full force and effect unless the term thereof sooner expires or unless continuation of the Franchise would endanger the health, safety and welfare of any person or the public. 3. Abandonment of Service. Grantee may not abandon the System or any portion tl1ereof without having first given three (3) months written notice to City. Grantee . may not abandon the System or any portion tl1ereof witl10ut compensating City for damages resulting from the abandonment, including all costs incident to removal of tl1e System. 4. Removal After Abandonment. Termination or Forfeiture. a. In tl1e event of termination or forfeiture of the Franchise or abandonment of the System, City shall have the right to require Grantee to remove all or any portion of the System from all Rights-of-Way and public property within City. b. If Grantee has failed to commence removal of System, or such part thereof as was designated by City, within tl1irty (30) days after written notice of City's demand for removal is given, or if Grantee has failed to complete such removal within twelve (12) months after written notice of City's demand for removal is given, City shall have the right to apply funds secured by the Letter of Credit and Performance Bond toward removal and/or declare all right, title, and interest to the System to be in City with all rights of ownership including, but not 1in1ited to, tl1e right to operate the System or transfer the System to another for operation by it. . 27 ,__- ---------- . 5. Sale or Transfer of Franchise. a. No sale or transfer of the Franchise, or sale, transfer, or fundamental corporate change of or in Grantee, including, but not 1inlited to, a fundamental corporate change in Grantee's parent corporation or any entity having a controlling interest in Grantee, tl1e sale of a controlling interest in the Grantee's assets, a merger including the merger of a subsidiary and parent entity, consolidation, or the creation of a subsidiary or affiliate entity, shall take place until a written request has been filed with City requesting approval of the sale, transfer, or corporate change and such approval has been granted or deemed granted, provided, however, tl1at said approval shall not be required where Grantee grants a security interest in its Franchise and/or assets to secure an indebtedness. b. Any sale, transfer, exchange or assignment of stock in Grantee, or Grantee's parent corporation or any other entity having a controlling interest in Grantee, so as to create a new controlling interest tl1erein, shall be subject to tl1e requirements of tl1is Section 10.5. The term "controlling interest" as used herein is not 1inlited to majority stock ownership, but includes actual working control in whatever manner exercised. In any event, as used herein, a new "controlling interest" shall be deemed to be . created upon the acquisition through any transaction or group of transactions of a legal or beneficial interest of fifteen percent (15 %) or more by one Person. Acquistion by one Person of an interest of five percent (5 %) or more in a single transaction shall require notice to City. c. The Grantee shall file, in addition to all documents, forms and information required to be filed by applicable law, the following: 1. All contracts, agreements or other documents that constitute the proposed transaction and all exhibits, attachments, or other documents referred to therein which are necessary in order to understand the terms thereof. 2. A list detailing all documents filed with any state or federal agency related to tl1e transaction including, but not limited to, the MPUC, the FCC, tl1e FTC, the FEC, tl1e SEC or MnDOT. Upon request, Grantee shall provide City with a complete copy of any such document; and 3. Any otl1er documents or information related to tl1e transaction as may be specifically requested by tl1e City. . d. City shall have such tinle as is permitted by federal law in which to review a transfer request. 28 ----- -..------ j . e. The Grantee shall reimburse City for all the legal, administrative, and consulting costs and fees associated with the City's review of any request to transfer. Nothing herein shall prevent Grantee from negotiating partial or complete payment of such costs and fees by tl1e transferee. Grantee may not itemize any such reimbursement on Subscriber bills, but may recover such expenses in its subscriber rates. f. In no event shall a sale, transfer, corporate change, or assignment of ownership or control pursuant to subparagraph (a) or (b) of this Section be approved witl10ut tl1e transferee becoming a signatory to this Franchise and assuming all rights and obligations thereunder, and assuming all other rights and obligations of the transferor to the City including, but not limited to, any adequate guarantees or otl1er security instruments provided by tl1e transferor. g. In the event of any proposed sale, transfer, corporate change, or assignment pursuant to subparagraph (a) or (b) of this Section, City shall have the right to purchase the System for tl1e value of the consideration proposed in such transaction. City's right to purchase shall arise upon City's receipt of notice of tl1e material terms of an offer or proposal for sale, transfer, corporate change, or assignment, which Grantee has accepted. Notice of . such offer or proposal must be conveyed to City in writing and separate from any general announcement of tl1e transaction. h. City shall be deemed to have waived its right to purchase the System pursuant to tl1is Section only in the following circumstances: 1. If City does not indicate to Grantee in writing, witl1in sixty (60) days of receipt of written notice of a proposed sale, transfer, corporate change, or assignment as contemplated in Section 10.5 (g) above, its intention to exercise its right of purchase; or 11. lt approves the assignment or sale of the Franchise as provided within this Section. 1. No Franchise may be transferred if City determines Grantee is in noncompliance of the Franchise unless an acceptable compliance program has been approved by City. The approval of any transfer of ownership pursuant to tl1is Section shall not be deemed to waive any rights of City to subsequently enforce noncompliance issues relating to tl1is Franchise even if such issues predated the approval, whether known or unknown to City. . 29 . SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS 1. Discrinlinatory Practices Prohibited. Grantee shall not deny service, deny access, or otherwise discrinlinate against Subscribers or general citizens on the basis of race, color, religion, national origin, sex, age, status as to public assistance, affectional preference, or disability. Grantee shall comply at all times witl1 all otl1er applicable federal, state, and city laws, and all executive and administrative orders relating to nondiscrimination. 2. Subscriber Privacy. a. No signals including signals of a Class IV Channel may be transmitted from a Subscriber terminal for purposes of monitoring individual viewing patterns or practices without tl1e express written permission of the Subscriber. Such written permission shall be for a limited period of time not to exceed one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such authorization. The authorization shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. . Such permission shall be required for each type or classification of Class IV Channel activity planned for the purpose of monitoring individual viewing patterns or practices. b. No lists of tl1e names and addresses of Subscribers or any lists that identify tl1e viewing habits of Subscribers shall be sold or otherwise made available to any party other than to Grantee or its agents for Grantee's service business use or to City for the purpose of Franchise administration, and also to the Subscriber subject of that information, unless Grantee has received specific written authorization from the Subscriber to make such data available. Such written permission shall be for a limited period of tinle not to exceed one (1) year which may be renewed at tl1e option of tl1e Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such authorization. The autl1orization shall be revocable at any tinle by the Subscriber witl10ut penalty of any kind whatsoever. c. Written permission from the Subscriber shall not be required for the conducting of System wide or individually addressed electronic sweeps for tl1e purpose of verifying System integrity or monitoring for the purpose of billing. Confidentiality of such information shall be subject to tl1e provision set forth in subparagraph (h) of this Section. . 30 . SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS 1. Unauthorized Connections or Modifications Prohibited. It shall be unlawful for any firm, Person, group, company, corporation, or governmental body or agency, without the express consent of the Grantee, to make or possess, or assist anybody in making or possessing, any unauthorized connection, extension, or division, whether physically, acoustically, inductively, electronically or otherwise, with or to any segment of tl1e System or receive services of the System without Grantee's authorization. 2. Removal or Destruction Prohibited. It shall be unlawful for any firm, Person, group, company, or corporation to willfully interfere, tamper, remove, obstruct, or damage, or assist thereof, any part or segment of the System for any purpose whatsoever, except for any rights City may have pursuant to tl1is Franchise or its police powers. 3. Penalty. Any firm, Person, group, company, or corporation found guilty of violating tl1is section may be fined not less than Twenty Dollars ($20.00) and the costs of the action nor more than Five Hundred Dollars ($500.00) and tl1e costs of . the action for each and every subsequent offense. Each continuing day of the violation shall be considered a separate occurrence. SECTION 13. MISCELLANEOUS PROVISIONS 1. Franchise Renewal. Any renewal of tl1is Franchise shall be performed in accordance with applicable federal, state and local laws and regulations. The term of any renewed Franchise shall be limited to a period not to exceed fifteen (15) years. 2. W ork Performed by Otl1ers. All applicable obligations of this Franchise shall apply to any subcontractor or otl1ers performing any work or services pursuant to the provisions of this Franchise, however, in no event shall any such subcontractor or other performing work obtain any rights to maintain and operate a System or provide Cable Service. Grantee shall provide notice to City of the name(s) and addressees) of any entity, other tl1an Grantee, which performs substantial services pursuant to tl1is Franchise. 3. Amendment of Franchise Ordinance. Grantee and City may agree, from time to time, to amend this Franchise. Such written amendments may be made subsequent . to a review session pursuant to Section 7.5 or at any other tinle if City and Grantee agree that such an amendment will be in the public interest or if such an 31 . amendment is required due to changes in federal, state or loca11aws. Provided, however, nothing herein shall restrict City's exercise of its police powers or City's autl10rity to unilaterally amend Franchise provisions to the extent permitted by law. 4. Compliance witl1 Federal State and Local Laws. a. If any federal or state law or regulation shall require or permit City or Grantee to perform any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict witl1 the terms of tl1is Franchise, tl1en as soon as possible following knowledge tl1ereof, eitl1er party shall notify tl1e other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state laws and rules regarding cable communications not later tl1an one year after tl1ey become effective, unless otherwise stated, and to conform to federal laws and regulations regarding cable as tl1ey become effective. b. If any term, condition or provision of this Franchise or the application tl1ereof to any Person or circumstance shall, to any extent, be held to be invalid or unenforceable, tl1e remainder hereof and the application of such term, condition or provision to Persons or circumstances other than those as to whom it shall be held invalid or unenforceable 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 complied with provided the loss of the invalid or unenforceable clause does not substantially alter the agreement between the parties. In tl1e event such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the provision which had been held invalid or modified is no longer in conflict witl1 tl1e law, rules and regulations tl1en in effect, said provision shall thereupon return to full force and effect and shall thereafter be binding on Grantee and City. 5. Nonenforcement by City. Grantee shall not be relieved of its obligations to comply with any of the provisions of this Franchise by reason of any failure or delay of City to enforce prompt compliance. City may only waive its rights hereunder by expressly so stating in writing. Any such written waiver by City of a breach or violation of any provision of tl1is Franchise shall not operate as or be construed to be a waiver of any subsequent breach or violation. 6. Rights Cumulative. All rights and remedies given to City by this Franchise or retained by City herein shall be in addition to and cumulative with any and all otl1er rights and remedies, existing or inlplied, 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 tinle and as often and in such order as may be deemed expedient by City and tl1e exercise of one or more rights 32 . or remedies shall not be deemed a waiver of tl1e right to exercise at the same time or thereafter any otl1er right or remedy. 7. Grantee Acknowledgment of Validity of Franchise. Grantee acknowledges that it has had an opportunity to review tl1e terms and conditions of this Franchise and that under current law Grantee believes that said terms and conditions are not umeasonable or arbitrary, and that Grantee believes City has the power to make tl1e terms and conditions contained in this Franchise. SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS 1. Publication: Effective Date. This Franchise shall be published in accordance witl1 applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of acceptance by Grantee in accordance with the provisions of Section 14.2. 2. Acceptance. a. Grantee shall accept this Franchise witl1in sixty (60) of its enactment by tl1e . City Council, unless the time for acceptance is extended by City. Such acceptance by the Grantee shall be deemed tl1e grant of tl1is Franchise for all purposes provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied witl1 and all applicable timelines have run for the adoption of a City ordinance. In the event acceptance does not take place, or should all ordinance adoption procedures and timelines not be completed, this Franchise and any and all rights granted hereunder to Grantee shall be null and void. b. Upon acceptance of tl1is Franchise, Grantee and City shall be bound by all tl1e terms and conditions contained herein. c. Grantee shall accept this Franchise in the following manner: 1. This Franchise will be properly executed and acknowledged by Grantee and delivered to City. ii. With its acceptance, Grantee shall also deliver any grant payments, performance bond and insurance certificates required herein that have not previously been delivered. . 33 , ---------- - ---..----- . Passed and adopted this a9~ day of X/'t..L ::=~ Its: C ACCEPTED: This Franchise is accepted and we agree to be bound by its terms and conditions. Dated: By: Its: C:\CABLE\NSCCCC\ARDENHIL.FRN . . 34 EXHIBIT A . e~ Meredith I.W"Cable Kevin C. Griffin President & General Manager 934 Wood hill Drive (Fax) 612/483-9184 Roseville. MN 55113 Customer Service: 612/483-9999 Administration: 612/483-3233 August 4, 1997 Ms. Cor Wilson, Executive Director North Suburban Cable Communications Commission 950 Woodhill Drive Roseville, Minnesota 55113 Re: North Suburban Cable Communications Franchise Renewal Dear Cor: Attached please find an updated and revised Renewal Proposal per your request. We have made , an attempt to identifY everything that has been agreed to between us. Should there be any confusion please refer to my memorandum of July 31, 1997 to Mr. Creighton. As we have discussed, any agreements or offers regarding clarifications or modifications of our May 13, 1997 proposal have been made in the spirit and context of an entire "package" of understandings. Accordingly, changes in anyone component could result in a need to change other components. Please feel free to contact me with any questions or for further clarification :;Z K cc: Thomas D. Creighton Randall Coleman Kathi Donnelly-Cohen John Gibbs Trudi McCollum Foushee .. EXHIBIT A - Continued . Renewal. Proposal - Investment for the Future Meredith Cable proposes to meet the needs of the North Suburbs with this investment plan for the future which will thoroughly revitalize and modernize the system. This plan includes a franchise commitment to develop the system to 750 MHZ capacity. This plan will result in higher quality signals, expanded channel capacity and the opportunity to launch new programming services. In addition, Meredith Cable proposes to upgrade the existing Institutional Network and incorporate fiber into the system to facilitate future expansion of the Institutional Network. Meredith Cable also proposes a renewal of our commitment to support oflocal access programming and the establishment of capability to enable the development of future high speed data transmission services and other future services. This proposal represents an aggressive effort to respond to identified community needs and interests, taking into account the cost of meeting those needs and interests over the requested fifteen (15) year renewal time frame. The specifics of the proposal are set forth below: A. SUBSCRIBER SYSTEM UPGRADE DESIGN AND CONSTRUCTION Meredith Cable will commit in a renewal franchise that the subscriber system serving the North , Suburbs will be enhanced from the current 450 MHZ, 65 channel system to a state-of-the-art 750 MHZ system offering dramatically more channel capacity, higher signal quality, more reliability and more features as set forth below: . A-I. The subscriber network will be 750 MHZ capacity. Meredith plans to initially program 81 downstream channels upon activation - with phased activation launches as nodes are completed. This leaves an additional 200 MHZ capacity available for future activation of additional video channels, digital services, and other services as future marketplace needs dictate. In addition, the system will be designed with the capability to transmit return signals upstream at 5 - 40 MHZ in the future as commercial need dictates and with mutually acceptable franchise language that establishes a mechanism for discussions regarding activation of the return. . A - 2. Hybrid fiber-coaxial architecture will be deployed . A - 3. Initially, the system will be developed with approximately Forty (40) pockets which are called "nodes", each connected by optical fiber and serving approximately Two Thousand (2000) homes with a minimum 16 fiber count. The fiber optic nodes will be designed to be capable of migrating to five hundred (500) home nodes with a minimum 4 fiber count as marketplace need dictates. . A - 4. All power supplies will be equipped with standby power capability which, at a minimum, will be initially activated at the node locations. . . A - 5. In order to better assure reliability and system maintenance, the system will EXHmlT A - Continued . incorporate status monitoring at nodes and strategic locations. . A - 6. Non-interruptible power-passing compatible taps are planned for ease of maintenance and less disruption during system maintenance. . A - 7. Adequate fiber count, a minimum of 16 per initial 2,000 home node, will be included in order to facilitate future expansion of needs including future expansion of needs in business corridors as commercial need dictates. . A - 8. The subscriber RF system will accommodate and be capable of providing return signals in 5 - 40 MHZ bandwidth in the future. Such return capacity will be activated as commercial and marketplace need dictates and with mutually acceptable franchise language that establishes a mechanism for discussions regarding the activation of the return. . A - 9. All existing head end equipment will be replaced with state-of-the-art standard frequency head end equipment. . . A-I O. Basic Service channel mapping will no longer be utilized by the system, thereby permitting all local VHF off-air broadcast signals to be located "on-channel" for all . customers and with no impact on the PEG channel location on Universal Service. . A - II. Standby power will continue to be in place for the head end. . A - 12. The system will have the capability to receive and pass through all local broadcast signals in digital format as required by applicable federal rules and regulations and in compliance with applicable FCC mandated time lines. . A - 13. The system will permit all channels available to Meredith Cable in stereo to be passed through in stereo. . A - 14. Meredith Cable will commence application for licenses and permits related to construction within 90 days after the commencement of the renewal period. . A - 15. Meredith Cable will commence design, walkout, etc. related to construction within 90 days after commencement of the renewal period. . A - 16. Meredith Cable proposes to enter into a franchise timetable to complete the project by November 30,2000 and will aggressively work to substantially complete construction by November 30, 1999. Meredith Cable will carefully map and report any underground plant that may be abandoned. Stand alone abandoned aerial cable will be removed. . 2 EXHIBIT A - Continued . . A - 17. Meredith Cable proposes that interconnection between commonly owned, adjacent franchised systems in the Twin Cities marketplace can be accommodated by making available one (I) 6 MHZ channel for forward video purposes, one (I) 6 MHZ channel for return video purposes, one (1) 6 MHZ channel for forward data and lor other purposes, and one (1) 6 MHZ channel for return data and/or other purposes. Actual interconnection with other franchise areas will be subject to technical capability of those systems and those franchise areas entering into similar renewal agreements containing similar provisions. . A - 18. Meredith Cable plans to have a 750 MHZ carrier inserted at a levellOdb below the video carriers that will be measured as a normal procedure during service calls. The drop cable and passives will be inspected during normal installations to assure that 750 MHZ can be passed. Should a drop or associated passive equipment not pass the full 750 MHZ, the address will be noted and at the time the address upgrades service that requires signal above 550 MHZ, the drop and/or associated equipment will be changed out. B. INSTITUTIONAL NETWORK Meredith Cable proposes to meet the needs of institutions and users by upgrading the existing Institutional Network, including fiber capacity in the system to facilitate future Institutional - Network enhancements, and with mutually acceptable franchise language relating to technical and performance standards for the Institutional Network. This plan will offer flexibility and alternatives to local governments, public school districts, private schools, higher educational institutions, libraries and the social service community for the delivery and exchange of video and telecommunications services. Specifically, Meredith Cable proposes to make the following franchise commitments: . B-1. Frequency spectrum (including upstream and downstream); 5 - 450 MHZ. . B-2. Channel capacity of 54 channels (16 upstream and 38 downstream). . B-3. 15 additional pilot generators. . B - 4. Re-tuning of 10 existing pilot generators. . B - 5. Re-tuning of 124 existing amplifiers. . B - 6. Provision of 20 additional modulators or de-modulators. . B - 7. Standby power with full battery placement. .. . B- 8. Four (4) count shadow fiber placed along that part of the subscriber network that parallels the Institutional Network. . 3 -----..- EXHIBIT A - Continued . . B - 9. Meredith Cable will make the I-Net available to the designated institutions for video uses at no charge. . B - 10. Meredith Cable will make three (3) 6 MHz channels available downstream and three (6) MHz channels available upstrealll, for non-video uses at no charge. . B - 11. Meredith Cable will charge designated institutions for all non-video uses beyond B - 10. mentioned above at a rate calculated based on the Company's actual cost plus a 45% margin or "most favored comparable user" rate, whichever is lower. . B - 12. Nothing contained herein shall prevent Meredith Cable from using available capacity for other uses except that designated institutions shall have priority over other uses subject to rules or policies adopted by Meredith Cable after consultation with the Commission. . B- 13. Use of the I-Net by the Cable Commission, cities or delegated institutions will be limited to their own uses and no institution may sell any service to any third party. . B- 14. Meredith Cable will either allow designated institutions to purchase their own equipment or will lease end-user terminal equipment to requesting institutions. . . B - 15. Meredith Cable will provide and maintain I-Net equipment for the Commission, member cities and designated institutions on a cost recovery basis. C. PROGRAMMING Upon completion and activation by territory, Meredith will program a minimum of 81 analog video channels. While definitive programming agreements have not been entered into and, as such, specific packaging, tiering and pricing decisions cannot be made at this time, it is anticipated that prices will be adjusted as authorized to reflect the additional programming as well as project and programming costs. As examples, we preliminarily anticipate the following new programming choices or similar services will be available: . C - 1. Basic Service (or equivalent) - Initially, Meredith Cable anticipates a continuation of current Basic Service offering of 28 channels without a realignment of channels within Universal Service. . C- 2. Prefe,'red Tier Service (or equivalent) - Meredith Cable anticipates the addition of 4 or 5 channels to this tier that currently consists of29 channels. There will be a corresponding rate adjustment. Preliminarily, and as examples, we anticipate the likely addition of the following exciting new offerings or others as we may deem more responsive to subscriber or marketplace needs and interests.: .. 4 " . EXHIBIT A - Continued . . The Golf Channel - The Golf Channel is the premier network devoted to the sport of golf providing more live golf coverage than all other networks combined. Tournaments include coverage from the PGA Tour, Senior PGA Tour, NIKE Tour, LPGA, Australian and PGA European Tour. Original live programming on The Golf Channel includes a weekly live call-in show, Golf Talk Live, and a nightly golf news show, Golf Central. The service also provides instructional programs such as The Golf Channel Academy. . The Cartoon Network - Featuring the world's largest cartoon library, the Cartoon Network features all-animated cartoon programming at any time of the day or night. For cartoon lovers of all ages, this network offers 8,500 animated programs from the Hanna-Barbara libraries including The Jetsons, The Flintstones and many more. . Classic Sports Network - The first 24-hour, all sports television hall offame, featuring the world's largest library ofrare and exclusive programming from professional, amateur, college sports and the Olympic Games. . TV Food Channel - Helps cable television viewers learn new recipes and cooking . techniques, 'spice' up family meals, learn the latest in healthier cuisine and explore fine restaurants nationwide. Hosts include world-class chefs, restaurateurs, mothers who work outside the home and celebrities. . Sneak Prevue - Sneak Prevue is the channel cable customers turn to 24 hours a day, for the most up-to-date information on programming available for order on a Pay-Per-View basis.. The service includes video clips of Pay- Per-View movies and events along with complete ordering information. . C - 3. New Product Tier Service - Meredith Cable anticipates the addition of 4 or 5 channels to a new, separately priced tier of service. Preliminarily, and as examples, we anticipate the likely addition of the following exciting new offerings or others as we may deem more responsive to subscriber or marketplace needs and interests.: . Independent Film Channel - The first network dedicated to independent film, . showcasing feature-length premieres, domestic and international films, documentaries, shorts, animation, new works, and masters. All movies are shown un-cut and without commercials, 24 hours a day. . FX Movies - Twenty four hours per day, un-cut and commercial free, FX Movies brings the vast Fox film library to cable television. . TV Land - America's favorite classic television shows are brought back to . 5 EXHIBIT A - Continued . television. A companion station to Nick at Night, TV Land expands into all areas of classic television, comedies, dramas, variety shows, and even classic commercials. . Turner Classic Movies - The world's greatest collection of classic movies 24 hours a day, with no commercial interruptions. . CNN SI - The 24 hour sports news network from CNN and Sports Illustrated. Seven days a week CNN SI is a 24 hour network offering coverage of sports news unlike any other service. CNN SI utilizes the news gathering resources of CNN and in-depth reporting expertise of Sports Illustrated and provides sports viewers the most complete on-demand coverage available anywhere. . C - 4. Premium Services - Meredith Cable will ad several new optional premium service selections. Preliminarily, and as examples, we anticipate the likely addition of the following new premium offerings or others as we may deem more responsive to subscriber or marketplace needs and interests: . HBO 3 - With Multichannel; HBO featuring HBO 2 and HBO 3, you always have three HBO programs to choose from. A Hollywood hit, maybe an HBO Original . that everyone's talking about or something light like HBO Comedy Hour. The choice.. and convenience...is yours! . HBO Family - HBO Family is a new HBO channel designed especially for a family to watch together. With HBO Family's daily programming blocks, HBO Kids Block, the HBO Family Feature Block and Grown Ups Block, you always know just what kind of programs are on any time. Your family will love our family I . Showtime 3 - With Multichannel Showtime featuring Showtime 2 and Showtime 3 you'll see the biggest Hollywood hits, exciting Showtime Original Pictures, featuring the hottest stars and stories - sexy thrillers, sci-fi, National Lampoon comedy and high profile dramas. Multichannel convenience means you'll always find the program to match your mood! . C - 5. Pay-Per-View Services - Meredith Cable will offer more optional pay-per-view service selections. Preliminarily, and as examples, we anticipate the likely addition of the following three new pay-per-view services or others as we may deem more responsive to subscriber marketplace needs and interests: . Viewer's Choice 3 - featuring "movie-of-the-day" schedules allowing customers to see the biggest hits as soon as they become available. . 6 EXHIBIT A - Continued . . Viewer's Choice 4 - similar to Viewer's Choice 3 but featuring yet another movie option. . Viewer's Choice 5 - similar to above featuring yet another movie option. . C - 6. Interactive Services - Meredith Cable's plan contemplates the capability of offering interactive services upon completion ofthe project and a reasonable expectation of consumer acceptance and financial viability. While various services are currently developing, Meredith Cable is considering, among other services, a digital music service and interactive program guide. No decisions have been made regarding particular services, pricing or launch dates. . C - 7. Digital Services - Meredith Cable anticipates that additional premium service options, pay-per-view offerings and other new services including future digital services will be offered over time utilizing the appropriate bandwidth. D. HIGH SPEED DATA TRANSMISSION In addition to traditional video services, the cable system will position Meredith Cable to offer new and yet-to-be-developed non-video services. e . D - 1. The subscriber network will have adequate capability to enable the provision of high speed data service such as Internet access as marketplace need dictates. . D - 2. Meredith Cable's system will be able to address opportunities to meet the non- video interests of the business community by including fiber capacity through business corridors identified during the construction walkout in order to explore high speed data services demand by business users. E. COMMITMENT TO ACCESS PROGRAMMING Meredith Cable proposes to meet and exceed the agreements regarding access support which were entered into with the North Suburban Cable Communications Commission in the November 3, 1994 Memorandum of Understanding. Specifically Meredith Cable proposes the following support for local access programming: . E - 1. Meredith Cable agrees to maintain the number of access channels (12) as currently exist and accept the concept of having the current channel loan agreements extended for the fifteen (15) year renewal term and that the Commission will retain control over the entire 6 MHZ spectrum that equals one channeL. . E - 2. Meredith Cable agrees that the Commission can, on its own, change the name of required PEG channels, provided that Meredith is indemnified from any claims as a result . 7 EXHIBIT A - Continued . of such action by the Commission. . E - 3. Meredith Cable proposes that the PEG support components of the Memorandum of Understanding remain intact. Rather than the PEG support fee set forth in the May 13, 1'197 original proposal, Meredith proposes a PEG fee based on the following: a new commitment to provide the Commission a total of $667,286 for the franchise term for acquisition of new equipment as follows and to be assessed as part of the PEG Fee; the $50,000 Equipment Replacement Grant, per the MOD; the appropriate amount for the Operating Grant, per the MOU; the appropriate amount for Universal Service, per the MOD; and the appropriate amount for the Scholarship Grant (which may be used for other purposes at the Commission's discretion), per the MOU: New Equipment Acquisition Grants Year Amount 1 $ 40,000 2 $ 40,600 , $ 41,209 ~ 4 $ 41, 827 5 $ 42,455 6 $ 43,091 . 7 $43,738 8 $ 44,394 9 $ 45,060 10 $ 45,736 11 $ 46,422 12 $ 47,118 13 $ 47,825 14 $ 48,542 15 $ 49,270 . E - 4. Should Meredith Cable request the relocation of the CTV studio, Meredith agrees that the current agreements governing CTV relocation will remain intact. Meredith does not waive any rights it may have with respect to the ability to recover any such costs should a move occur. . 8 - EXHIBIT B North Suburban Area Institutional Connections .ity of Arden Hills Inst. Name Street Address City Phone I-Net Sub Arden Hills City Hall 4364 W. Round Lk. Rd. (Temp.) Arden Hills 636-5676 X X Arden Hills Public Works 1460 W. Hwy. 96 Arden Hills 636-5676 Y X Uti I. - Booster 1230Red Fox Road Arden Hills Y Util.- Lift #1 3196 North Cleveland Arden Hills Y Util.- Lift #10 3804 North Cleveland Arden Hills Y Util.. Lift #11 1901 Highway 96 Arden Hills Y Util.- Lift #12 1965 Thom Drive Arden Hills Y Util.- Lift #13 1123 Karth Lake Drive Arden Hills Y Util.- Lift #14 Hwy 96, (MN Nat. Guard) Arden Hills Y Uti I. - Lift #2 1850 Co. Rd. E2 Arden Hills Y ~il.- Lift #3 1578 Lake Johanna Bivd. Arden Hills Y y Util. - Lift #4 3484 Ridgewood Road Arden Hills Uti I. - Lift #5 3495 Lake Johanna Blvd. Arden Hills Y Util.. Lift #6 3328 Lake Johanna Blvd. Arden Hills Y Util.- Lift #7 3230 Lake Johanna Blvd. Arden Hills Y Util.- Lift #8 1335 Ingerson Road Arden Hills Y Util.- Lift #9 3168 Ridgewood Road Arden Hills Y Util.- Roseville Station y City of Falcon Heights Inst. Name Street Address City Phone I-Net Sub Falcon Heights City Hall 2077 W. Larpenteur Ave. Falcon Heights 644-5050 X X Falcon Heights Community Bldg. 2050 W. Roselawn Ave. Falcon Heights 645-2712 N Y Falcon Heights Fire Station 2077 W. Larpenteur Ave. Falcon Heights 644-5575 X X ity of Lauderdale Inst. Name Street Address City phone I-Net Sub Lauderdale City Hall 1891 Walnut SI. Lauderdale EXHIBIT B - Continued Nor.th Suburban Area Institutional Connections Page 2 Inst. Name Street Address City Phone I-Net Sub ~ity of Little Canada Inst. Name Street Address City Phone I-Net Sub City Garage 3100 Country Drive Little Canada Y Y Ice Rink 430 Little Canada Road Little Canada Y Ice Rink 100 E. Demont Little Canada Y Little Canada City Hall 515 E. Little Canada Rd. Little Canada 484-2177 X X Little Canada Fire Station 325 Little Canada Rd. Little Canada 871-5503 X X Old Little Canada Fire Station 440 E. Little Canada Rd. Little Canada 871-5503 X X Shelter 350 Eli Road Little Canada Y Shelter 2950 Centerville Little Canada Y Util.- Booster Station 141 Co. Rd. B Little Canada y Util.- Lift Station 672 Co. Rd. B Little Canada y .. Util. - Lift Station 2537 Keller Parkway Little Canada Y Util.- Lift Station 99 Co Rd. B Little Canada Y Util.- Lift Station 2458 Dianna Lane Little Canada y Util.- Lift Station 2707 Jessica Court Little Canada y Util. - lift Station 1002 Co. Rd. D Little Canada y Util.- Lift Station 216 Co. Rd. B-2 E. Little Canada y Util.- Water Meter Station 5 Roselawn Little Canada y Util.- Water Tower 517 Little Canada Road Little Canada y City of Mounds View Inst. Name Street Address City Phone I-Net Sub Bridges Golf Course 2850 82nd Lane NE Blaine y y Mounds View City Hall 2401 Hwy. 10 Mounds View 784-3055 X X Mounds View Community Center 5394 Edgewood Dr. Mounds View y y Mounds View Fire Station Hwy.10 Mounds View X y Mounds View Maintenance Gar. 2466 NE Bronson Dr. Mounds View 784-3114 y X Util.- Booster Station (Reservoir) 2450 Bronson Drive Mounds View Y EXHIBIT B - Continued North Suburban Area Institutional Connections Page 3 Inst. Name Street Add ress City Phone I-Net Sub Util.- Lift Station #1 5396 Raymond Ave. Mounds View Y Util.- Lift Station #2 8251 Groveland Road Mounds View Y Util.- Well #1 2401 Highway 10 Mounds View Y Util.- Well #2 2524 Bronson Drive Mounds View Y Util.- Well #3 2426 Bronson Drive Mounds View Y Util.- Well #4 2408 Hillview Drive Mounds View Y Util.- Well #5 5100 Long Lake Road Mounds View Y Util.- Well #6 7545 Groveland Road Mounds View Y City of New Brighton Inst. Name Street Address City Phone I-Net Sub Brightwood Hills Goif Course 1975 NW Silver Lake Rd. New Brighton 638-2150 X X New Brighton City Hall 803 NW 5th Ave. New Brighton 638-2100 X X New Brighton Fire Station 785 NW 5th Ave. New Brighton 633-2727 X X New Brighton Maintenance Bldg. 700 NW 5th Ave. New Brighton Y X New BrightonFamily Service Cntr. 400 NW 10th SI. New Brighton 638-2130 X X Util.- Lift Station 1 (under const.) To Be Assigned New Brighton Y Util.- Lift Station 2 531 5th Avenue NW New Brighton Y Util.- Lift Station 3 515 3rd Avenue NW New Brighton Y Util.- Lift Station 7 650 Cleveland Ave. New Brighton Y Util.- Lift Station 8 24 New Brighton Road New Brighton Y Util.- PGAC Water Treatment Plant 3001 5th Street NW New Brighton Y Util.- Well 10 & Iron Removal Plant 660 5th Street SW New Brighton Y Util.- Well 11 & Iron Removal Plant 1375 7th Street NW New Brighton Y Util.- Well 12 & Iron Removal Plant 2400 Mississippi St. ~ew Brigilton Y Util.- Well 13 & Water Treatment 680 5th Street NW New Brighton Y Util.- Well 14 1377 7th Street NW New Brighton Y Utll.- Well 15 590 20th Street NW New Brighton Y EXHIBIT B - Continued North Suburban Area Institutionol Connections Page 4 Inst. Name Street Address City Phone I-Net Sub _il.- Well 8 600 Silver Lake Road New Brighton Y Util.- Wells 3 & 4 700 Silver Lake Road New Brighton Y Util.- Wells 5 & 6 3001 5th Street NW New Brighton Y Util.- Wells 9 2745 5th Street NW New Brighton Y City of North Oaks Inst. Name Street Address City Phone I-Net Sub North Oaks City Hall 100 Village Center Dr. North Oaks 484-5777 X X North Oaks Recreation Center 4 Mink Lane North Oaks X X City of Rosevil1e Inst. Name Street Address City Phone I-Net Sub John Rose Minnesota OVAL 2661 Civic Center Dr. Roseville 415-2164 X Y Roseville Activity Center 2800 Arona St. Roseville 415-2100 X X oseviile Cedarholm Golf Course 2323 N. Hamline Ave Roseville 633-5817 X Y oseville Central Park-Bandshell Lexington Ave. -(FH Inet) Roseville X N Roseviile City Hall 2660 Civic Center Dr. Roseville 490-2200 X X Roseville Fire Station 1 2701 N. Lexington Ave. Roseville 490-2306 X X Roseville Fire Station 2 2501 N. Fairview Ave. Roseville 636-6763 X X Roseviile Fire Station 3 2335 N. Dale SI. Roseville 484-5297 X X Roseville Gymnastics Cntr. 1240 Co. Rd. B-2 Roseville 415-2190 y Y Roseville Harriet Alexander Nature 2520 N. Dale St. Roseville 415-2161 X X Roseville Ice Arena 2661 Civic Center Dr. Roseville 415-2164 X X Roseville License Bureau 2701 Lexington Ave. Roseville 490-2294 X X Roseville Maintenance Building 2660 Civic Center Dr. Roseville 490-2310 Y X Util.- Booster Station 706 Shryer Ave. Roseville y Util.- Elevated Tank 2501 N. Fairview Ave. Roseville y til. - Lift Station 635 S. Owasso Blvd Roseville y Util.- Lift Station 2980 Galtier Street Roseville y Util.- Lift Station 1610 Co. Rd. C-2 Roseville y EXHIBIT B - Continued North Suburban Area Institutional Connections Page 5 Inst. Name Street Address City Phone I-Net Sub __til.- Lift Station 3033 Cleveland Ave. Roseville Y Uti I. - Lift Station 435 Wagner Street Roseville Y Uti I. - Lift Station 2013 Cohansey Blvd. Roseville Y Util. - Lift Station 1680 Fernwood Ave. Roseville Y Uti!.- Lift Station 3050 Lexington Ave. Roseville Y Uti!.- Lift Station 1216 Josephine Road Roseville Y Util.- Lift Station 3050 Long Lake Road Roseville Y Util.- Lift Station 1953 Fulham Street Roseville Y Uti!. - Lift Station 2050 Walnut Street Roseville Y Uti!.- Lift Station 201 Center Street Roseville Y Uti!.- Storm Water Pumping Station 2535 N. Victoria St. Roseville Y Util.- Storm Water Pumping Station 1658 Millwood Ave. Roseville Y Jtil.- Storm Water Pumping Station 591 Owasso Hills Drive Roseville y Uti!.- Storm Water Pumping Station 2340 St. Croix Street Roseville y Uti!.- Storm Water Pumping Station 1999 Fulham Street Roseville Y City of Shoreview Inst. Name Street Address City Phone I-Net Sub Shoreview City Hall /Community 4600N. Victoria St. Shoreview 490-4600 X X Shoreview Maintenance Bldg. 4665 N. Victoria St. Shoreview 490-4650 Y Y Uti!.- Booster Station 855 Highway 96 Shoreview Y Util.- Lift Station 4468 Chatsworth Shoreview y Util.- Lift Station 3580 Cohansey Shoreview y Uti!.- Lift Station 425 Gramsie Road Shoreview y Util.- Lift Station 875 Gramsie Road Shoreview y Util.- Lift Station 636 Highway 96 Shoreview y til. - Lift Station 1088 Lake Beach Drive Shoreview y Util.- Lift Station 3366 Lexington Ave. Shoreview y EXHIBIT B - Continued North Suburban Area Institutional Connections Page 6 Inst. Name Street Address City Phone I.Net Sub *il.- Lift Station 4680 Lexington Ave. Shoreview y Util.. Lift Station 915 Oak Ridge Shoreview y Uti 1.- Lift Station 3194 West Owasso Blvd. Shoreview y Util.. Lift Station 3212-1/2 W. Owasso Blvd. Shoreview Y Util.- Lift Station 4338 Reiland Lane Shoreview y Util.- Lift Station 4465 Rice Street Shoreview y Utii. - Lift Station 699 Schifsky Road Shoreview y Util.- Lift Station 700 Schifsky Road Shoreview y Uti I. - Lift Station 4307 Snail Lake Blvd. Shoreview y Util.- Lift Station 4412 Snail Lake Blvd. Shoreview y Util.- Lift Station 512 Suzanne Ave. Shoreview y Util.- Lift Station 5024 Turtle Lane East Shoreview y 'jtil.- Lift Station 3121 Woodbridge Shoreview y Util.- Sucker Lake Pump 50 Highway 96 W. Shoreview y Util.- Water Tower 745 County Road E Shoreview y Util.- Water Tower 5880 Lexington Avenue Shoreview y Util.- Well 785 Highway 96 Shoreview y Util.- Well 883 Highway 96 Shoreview y Util.- Well 4965 Hodgson Road Shoreview y Util.- Well 902 Monterey Shoreview y Uti\'. Well 750 Mound Avenue Shoreview y Util.-Well 4675 Victoria Street Shoreview y City of St. Anthony Inst. Name Street Address City Phone I-Net Sub SA V Liquor Store #1 2900 Pentagon Drive St. Anthony y SAY Liquor Warehouse #2 3900 Silver Lake Road St. Anthony y St. Anthony City Hall 3301 Silver Lake Rd. St. Anthony 789-8881 X X EXHIBIT B - Continued North Suburban Area Institutional Connections Page 7 Inst. Name Street Address City Phone t-Net Sub ~. Anthony Fire Station 2900 Kenzie Terrace SI. Anthony 788-1 434 X X SI. Anthony Public Works 3801 Chandler Dr. SI. Anthony X X Util.- Foss Road Lift 3829 Foss Road SI. Anthony y Util.- Harding Lift 2700 37th Ave SI. Anthony y Util.- Water Filtration Plant 3807 Silver Lake Road SI. Anthony y Util.- Well #5 2920 Silver Lake Road SI. Anthony y CTV Inst. Name Street Address City Phone I-Net Sub Canadian Days Parade-drop Little Canada Rd Little Canada X CTV Irondale studio 2425 Long Lake Rd. New Brighton 783-9334 X X CTV Van 1 2425 Long Lake Rd. New Brighton 783-9334 X CTV Van 2 950 Woodhill Dr. Roseville 481-9554 X Lake Owasso Beach - drop ??? N Owasso Bvd. Shoreview X LC Spooner Park- drop Eli Rd. Little Canada X NB Parade - drop New Brighton X RAHS Parking Lot (on B2)- drop Roseville X Roselest parade - drop1 Lexington Ave. Roseville X Rosefest parade - drop2 Lexington Ave. Roseville X Rosetown Legion field-drop W. Co. Rd. C. Little Canada X Dist 282 - SAlNB Schools Inst. Name Street Address City Phone I-Net Sub ISO 282 District Office SAlNB 3303 33rd Ave. NE SI. Anthony 706-1000 X X SI. Anthony High Schooi 3303 33rd Ave. NE SI. Anthony 706-1100 X X St. Anthony Middle School 3303 33rd Ave. NE SI. Anthony 706-1200 X X Wilshire Park Elementary 3600 NE Highcrest Rd. St. Anthony 706-1030 X X eoist 621 - Mounds View Inst. Name Street Address City Phone I.Net Sub Area Learning Center 4182 N. Lexington Ave. Shoreview EXHIBIT B - Continued North Suburban Area Institutional Connections Page 8 Inst. Name Street Address City Phone I-Net Sub Bel Air Elementary School 1800 NW 5th SI. New Brighton 633-3521 X X Chippewa Middle School 5000 Hodgson Rd. North Oaks 483-6635 X X Edgewood Middle School 5100 N. Edgewood Dr. Mounds View 784-2010 X X Highview Middle School 2300 NW 7th SI. New Brighton 633-8144 X X Irondale High School 2425 Long Lake Rd. New Brighton 786-5200 X X ISD 621 District Service Center 2959 Hamline Ave. Roseville 636-3650 X X Island Lake Elementary 3555 N. Victoria SI. Shoreview 484-5553 X X Mounds View High School 1900 W. Co. Rd. F Arden Hills 633-4031 X X Oak Grove High School 5100 Hodgson Rd. North Oaks 484-2057 X X Pike Lake Elementary 2101 NW 14th SI. New Brighton 633-7711 X X Pinewood Elementary 5500 Quincy SI. Mounds View 784-4006 X X Ralph Reeder Center 500 NW 1 Oth SI. New Brighton 636-1 91 0 X X ~nail Lake Elementary 4550 Hodgson Rd. Shoreview 483-6725 X X Sunnyside Elementary 2070 W. Co. Rd. H New Brighton 784-5226 X X Turtle Lake Elementary 1141 W. Co. Rd. I Shoreview 484-2150 X X Valentine Hills Elementary 1770 W. Co. Rd. E2 Arden Hills 631-0737 X X Dist 623 - Roseville Area Inst. Name Street Address City Phone I-Net Sub Brimhall Elementary 1744 W. Co. Rd. B Roseville 638-1958 X X Central Park Elementary 535 W. Co. Rd. B2 Roseville 481-9951 X X Edgerton Elementary School 1929 Edgerton Street Maplewood 772-2565 X X Emmet D Wiliams Elem 955 W. Co. Rd. D Shoreview 482-8624 X X Fairview Community Center 1910 W. Co. Rd. B Roseville 631-1013 X X Falcon Heights Elementary 1393 W. Garden Av. Falcon Heights 646-0021 X X ISD 623 District Center 1251 W. Co. Rd. B2 Roseville 635-1600 X X ittle Canada Elementary 400 Eli Rd. Little Canada 490-1353 X X Parkview Center School 701 W. Co. Rd. B Roseville 487-4360 X X EXHIBIT B - Continued North Suburban Area Institutional Connections Page 9 Inst. Name Street Address City Phone I-Net Sub oseville Area High School 1261 Hwy.36 Roseville 635-1660 X X Roseville Area Middle Sch 15 E. Co. Rd. B2 Little Canada 482-5280 X X Guard/Reserves Inst. Name Street Address City Phone I-Net Sub Army Reserve Training Cntr. Lexington & Hwy. 96 Arden Hills Y Y National Guard Armory 211 N. McCarrons Lake Roseville 296-4140 X X Hennepin County Inst, Name Street Address City Phone I-Net Sub St. Anthony Public Library 2900 NE Pentagon Dr. St. Anthony Higher Education Inst. Name Street Address City Phone I-Net Sub Bethel College 3900 Bethel Dr. Arden Hills 638-6180 X X Capital View (Dist. 916) 70 W. Co. Rd. B2 Little Canada 415-5413 X X Northwestern Col- FB field 3003 Snelling Ave. N. Roseville 631-51 00 X X Northwestern Col- Gym/BB 3003 Snelling Ave. N. Roseville 631-5267 X X Northwestern College-Studio 3003 Snelling Ave. N. Roseville 631-5312 X X U of M - Earl Brown Center 1890 Buford Ave. Falcon Heights 624-2777 X United Theo. Seminary 3000 NW 5th St. New Brighton 633-4311 Y Y ISP Inst. Name Street Address City Phone I-Net Sub Risdahl-Linahan Agency 2475 NW 15th St. New Brighton 631-1 098 X T.I.E.S. 1925 W. Co. Rd. B2 Roseville 638-2339 X Lake Johanna Fire Dept. Inst. Name Street Address City Phone I-Net Sub Lake Johanna Fire Station 1 2346 New Brighton Rd. Arden Hills 633-0349 y X Lake Johanna Fire Station 2 4676 Hodgson Rd. Shoreview 484-3444 y Y Lake Johanna Fire Station 3 1140 W. Co. Rd. I Shoreview 481-7025 y X Lake Johanna Fire Station 4 3615 N. Victory St. Shoreview 483-0767 X X EXHIBIT B - Continued North Suburban Area Institutional Connections Page 10 Inst. Name Street Address City Phone I-Net Sub eon-profit Inst, Name Street Address City Phone I-Net Sub Northwest Youth & Family Services 3490 Lexington Ave. Shoreview Private Schools Inst. Name Street Address City Phone I-Net Sub Concordia Academy 2400 N. Dale St. Roseville 484-8429 X X Corpus Christi School 2131 N. Fairview Ave. Roseville 639-8888 X King of Kings School 2330 N. Dale St. Roseville 484-9206 X X North Side Christian School 7901 Red Oak Drive Moundsview 786-8632 X St. Charles Barromeo 2727 NE Stinson Bvd. St. Anthony 781-2643 X St. Christopher's Ep. 2300 N. Hamline Ave. Roseville 633-4589 X St. John the Baptist School 845 NW 2nd Ave. New Brighton 633-1522 X X St. John the Evangelist 2621 McMenemy St. Little Canada 484-2708 X X t. Odilia School 3495 N. Victory SI. Shoreview 484-3364 X St. Rose of Lima 2072 N. Hamline Ave. Roseville 645-9389 X X Ramsey County Inst. Name Street Address City Phone I-Net Sub Island Lake Golf Center Grey Fox Rd. Shoreview y y Lake Owasso Residence 210 N. Owasso Bvd. Shoreview 484-2234 y Y Ramsey Co. Library - Arden Hills 1941 W. Co. Rd. E2 Arden Hills 636-1790 X X Ramsey Co. Library - Mounds View 2576 Hwy. 10 Mounds View 784-8829 y X Ramsey Co. Library - Roseville 2180 N. Hamline Ave. Roseville 631-0494 X X Ramsey Co. Library - Shoreview 4570 N. Victoria SI. Shoreview 486-2210 X X Ramsey Co. Public Works Bldg. 3377 N. Rice St. Shoreview 484-91 04 Y X Ramsey Co. Sheriff Patrol Station 655 W. Co. Rd. E Shoreview 481-1300 y Y Ramsey Co. Women's Detention Kent & Larpenteur y y Shoreview Ice Arena 877 W. Hwy.96 Shoreview 484-2400 y Y . EXHIBIT C Description of Work Time Frame Engineering Walkout 0-6 months Engineering Design 2-8 months Commerce Permitting Day 75 Fiber Optic Cable and Node Installation 11-16 months Amplifier Replacement 12-24 months Passive Equipment Replacement 18-36 months System Balancing and Proof-of-Performance 36 months Activation in Phases; Completion By November 30,2000 . . EXHIBIT D . . NORTH SUBlffiBAN I-NET PERFORMANCE STANDARDS Upon completion of the I-Net upgrade: L Video Transmission A. Video transmission will comply with the following performance: standards: 1. Carrier to noise ratio = 45dB or better 2. Carrier to composite triple beat = 53dB or better 3. Carrier to composite second order = 55 dB or better 4. Carrier to cross modulation = 55 dB or better 5. System signal level variations (peak to valley) = n -;- 10 + 2 or better for all coaxial cable portions of the I-Net (where N = the number of amplifiers in cascade). B. Testing will occur twice yearly following the timing established in CFR 76,601 and 76.605. 1. From the institution to the longest subscriber cascade, 2. From the institution through the applicable headendl hub site returning back to the same institution. 3. Performed using existing I-Net carriers active at the time ofthe testing, which will subject them to service interuptions. -- 4. Completed at Company-designated entry demarcation point at the institution. 5. The system will meet calculated worst case fully loaded video and audio measurements, taking into consideration existing I-Net data loading at the time the measurement is taken. 6. Under ordinary operating conditions. 2, Digital Transmission A. For I-Net that is 50% or more coaxial cable, a Bit Error Rate of 1 x 10(-8) at the demarcation point. 1. Outage times not included 2. Ordinary operating conditions B. For I-Net that is 50% or more fiber optic cable, a Bit Error Rate of 1 x 10(- 9) at the demarcation point. 1. Outage times not included 2. Ordinary operating conditions C. For both coaxial and fiber network. the company will meet or exceed a reliability factor of 99.965% on an annual basis. D. Testing will occur twice yearly, during the months of JannarylFebruary and July/August. . EXHIBIT D - Continued e 3. Repair and Maintenance A. Company will provide a repair force of technicians capable of responding properly to all requests for service by I-Net Users and available on a 7 X 24 X 365 basis. B. Under normal operating conditions, the initial page to the technician on call will be within a 10 minute time frame. Barring situations that are outside the control ofthe Company (i.e., physical damage to the network caused by third parties not under the control of the cable company, weather related restrictions, etc.), the company will continue to work on a service problem until it is resolved and complete its resolution of such problem within eight (8) hours, if resolution of such problem is within coutrol of company. C. Fiber may be incorporated, where necessary, to reduce amplifier cascades to meet performance standards. Where possible, fiber nodes may be located within the building or facility of the I-Net user. D. I-Net Users will be notified at least seven days in advance of any scheduled maintenance that will interrupt service on the I-Net, unless I-Net Users agree to waive such time frame. Where possible, such maintenance will be scheduled at times oflow usage. . . Rf f IbabIt Df Pubtt'rat'OYC ~tatP Of A11IIYPSOtd ~g. J U ~ 1 4 ~99~ ~uutttp of ~tam~ep TONYA R. STENSGARD 0TY ke''ri~U~11y~swom, on oath, says that he/she is the publisher or authorized agent and employee of the publisher of the newspaper known as SHOREVIEW BULLETI(V , and has full knowledge of the facts which are stated below: (A) The newspaper has complied with all of the requirements constituting qualification as a qualified newspaper, as provided by Minnesota Statute 331 A.02, 331A.07, and other applicable laws, as amended. (B) The printed ORDINANCE NO. 307 which is attached was cut from the columns of said newspaper, and was printed and published once each week, for 1 successive weeks; it was first published on WEDNESDAY, the 8TH day of JULY , 19 98 , and was thereafter printed and published on every to and including , the day of , 1998 ; and printed below is a copy of the lower case alphabet from A to Z, both inclusive, wY?ich is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice: *ABCDEFGHIJKLMNOPflRSTUVWXYZ *ABCDEFGHIJKLMNOPQRSTUVWXYZ :JBookeeper •abcdefghijklmnopq rstuvwttyz Subscribed and sworn to before me on . this $TH day of JULY , 1998 Notary Public *AlChabet should be in the same size and kind of type as the notice. ';TEPF ,f,NIE K. h!!C! "L • ..,rn FAM~ Y COU;~TY RATE INFORMATION M My Comm. Expires Jan. 31, 2000 ¦ ~ (1) Lowest classified rate paid by commerciat users for comparable space . . . . . . . . . . . . . . . . . . . . . . . . $17.00 per col. inch (2) Maximum rate allowed by law for the above matter . . . . . . . . . . . . . . . $1 1.56 per col. inch (3) Rate actually charged for the above matter . . . . . . . . . . . . . . . . . . . . . $ per co{. inch 1 /98 CITY OF ARDEN HILLS ~ 4364 WEST ROUND LAKE ROAD P ARDEN HILLS, MN 55112-5794 July 1, 1998 Thomas D. Creighton Bernick and Lifson, Attorneys at Law Suite 1200, The Colonnade 5500 Wayzata Boulevard Minneapolis, MN 55416-1270 RE: Franchise Agreement Renewal, Ordinance No. 307 Dear Mr. Creighton: The Arden Hills City Council adopted Ordinance No. 307, "An Ordinance Granting a Franchise to MediaOne to Construct, Operate, and Maintain a Cable Communications System in the City of Arden Hills; Setting Forth Conditions Accompanying the Grant of the Franchise," at their June 29, 1998 meeting. The ordinance summary is in the process of being published. . I have enclosed a copy of the signed Ordinance. I assume that you will be forwarding the original to MediaOne for execution. Please provide a copy of this document to us once you have received their signatures. If you have any questions, or need additional information, please feel free to contact me. Sincer ly, 1~1q~ Brian Fritsinger City Administrator BF/sls Encl. CGCoralie Wilson PHONE: (612) 633-5676 • FAX (612) 633-7839 CITY OF ARDEN HILLS COUNTY OF RAMSEY a STATE OF MINNESOTA AN ORDINANCE SUMMARY ORDINANCE NO. 307 "AN ORDINANCE GRANTING A FRANCHISE TO MEDIAONE TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CITY OF ARDEN HILLS; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE." On the 29`h day of June, 1998, the Arden Hills City Council adopted Ordinance No. 307, and pursuant to local and Minnesota State law by five affirmative votes, directed that a summary of the ordinance be published in the City's Official Newspaper, and that a printed copy of Ordinance No. 307 be posted on the City's bulletin board and otherwise be made available for inspection by any person during regular business hours at the office of the City Administrator at 4364 West Round Lake Road, Arden Hills, MN 55112. STATEMENT OF INTENT AND PURPOSE The City intends, by the adoption of this Franchise, to bring about the further development of a Cable System, and the continued operation of it. Adoption of this Franchise is, in the judgement of the Council, in the best interests of the City and its residents. FINDINGS The City Council makes the following findings: 1. The company technical ability, financial condition, legal qualifications, and character were considered and approved; 2. The company plans for constructing, upgrading, and operating the System were considered and found adequate and feasible; 3. The Franchise complies with applicable laws and regulations; and 4. The Franchise is nonexclusive. SECTION 1. SHORT TITLE AND DEFINITIONS This Section names the Franchise Ordinance as the Cable Franchise Ordinance and contains many definitions regarding the Cable System. PAGE TWO ORDINANCE NO. 307 JUNE 29, 1998 SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS This Section grants a nonexclusive, fifteen (15) year Franchise, pursuant to the company's proposal and additional requirements contained int he Franchise. This Section further provides for free subscriber service to designated public and educational institutions. SECTION 3. CONSTRUCTION STANDARDS This Section provides for permitting requirements, construction code compliance, undergrounding requirements, and other conditions on the use of the Rights-of-Way. SECTION 4. DESIGN PROVISIONS This Section provides for the construction of a System providing 750 MHZ capacity and which is fully activated with the capability of a minimum of up to eight-one (81) video channels. The company will develop, construct, and operate a System capable of providing non-video services such as high-speed data transmission, Internet access, and other competitive services which shall be activated as Marketplace Need dictates. The company will complete all construction related to the System upgrade on or before November 30, 2000. The Section contains requirements regarding testing and technical standards and provides for four (4) channels to be interconnected with all adjoining cable systems. SECTION 5. SERVICE PROVISIONS This Section provides for rate regulation when permitted by law, customer service standards, late fees and subscriber contracts. SECTION 6. ACCESS CHANNEL(S) PROVISIONS The company will provide twelve (12) channels for public, education and government programming. The company will continue to comply with all requirements regarding community programming operations and funding, and in addition will increase the funding by $667,286 over the life of the Franchise. PAGE THREE ORDINANCE NO. 307 JUNE 29, 1998 SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS This Section contains provisions requiring the company to dedicate certain capacity for use by designated institutions, and contains terms and conditions for the usage and performance of this institutional network. SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS This Section contains provisions requiring the company to pay quarterly to City, or its delegatee, a Franchise Fee in an amount equal to five percent (5%) of its quarterly Gross Revenues. In addition, the City shall have the right to require the company to provide copies of any records, and the company must file with the City a report of all Gross Revenues and shall furnish such other reasonable reports with respect to operations as may be required. If requested, the company shall furnish the maps, plats, and permanent records of the location and character of all facilities. Finally, the City may require evaluation sessions at any time during the term of this Franchise. As a result of the review session, the company will meet with City and undertake good faith efforts to reach agreement on changes and modifications to the Franchise which are both economically and technically feasible. SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS This Section contains provisions requiring the company to furnish a performance bond to City in the amount of $500,000 and deliver to City an unconditional Letter of Credit from a National or State Bank approved by City in the amount of $25,000 to secure compliance with the terms of the Franchise. In addition, this Section provides that the City and its agents shall not be liable for any loss or damage arising out of any action of the company with respect to this Franchise. Finally, as a part of the indemnification above, the company shall maintain a comprehensive general liability insurance policy for any and all damages and penalties which may arise as a result of this Franchise in the sum of not less than $1,000,000 for personal injury or death of any one Person, and $2,000,000 for personal injury or death of two or more Persons in any one occurrence, $500,000 for property darnage to any one person and $2,000,000 for property damage resulting from any one act ar occurrence. PAGE FOUR ORDINANCE NO. 307 JUNE 29, 1998 SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE This Section provides that the City reserves the right to revoke this Franchise, if it is determined by City that the company has violated material provision(s) of this Franchise, has attempted to evade any of the provisions of the Franchise; or has practiced fraud or deceit upon City. This Section also contains provisions regarding abandonment of service and removal of equipment and requires that the company receive approval prior to sale or transfer. SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS This Section prohibits discrimination and requires subscriber privacy by the company. SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS This Section prohibits unauthorized connections to the System or damage to the System. SECTION 13. MISCELLANEOUS PROVISIONS This Section contains a variety of requirements concerning Franchise renewal, amendments, compliance with applicable law, and interpretation of the Franchise. SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS This Section requires that the Franchise be published in accordance with applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of acceptance by the company in accordance with the provisions of Section 14.2. The company shall accept this Franchise within sixty (60) days of its enactment by the Ciry Council provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied with and all applicable timelines have run for the adoption of a City ordinance. Adoption Date: Passed by the City Council of the City of Arden Hills, the 29 day of June, 1998. DENNIS PROBST, MAYOR ATTEST: (facsimile) BRIAN FRITSINGER, CITY ADMINISTRATOR (facsimile) (Affidavit Required) 07%01/98_ WED 07:56 FAX 6126337839 Cits of Arden Hills Z001 TX REPORT ~ TRANSMISSION OK TX/RX NO 0614 CONIVECTION TEL 6333846 CONNECTION ID ST. TIME 07/01 07;52 USAGE T 03'25 PGS, SENT 5 RESULT OK ~ • CITY OF ARDEN HILLS Qo 4364 WEST ROUND LAKE ROAD ~ P ARDEN HILLS, MN 55112-5794 S E YD TO: 5a.,tL FAX (~?~J ~J~4o PHONE MESSAGE FROM: _ i DATE: TII~IE: NO. OF PAGES, Iti'CLUDING THIS PAGE: NOTES: ~ . , **xIF YOU DO n'OT RECEIVE ALL THE PAGES, PLEASE CALL*** ~ PHONE: (612) 633-5676 • FAX (612) 633-7839 , - f CITY OF ARDEN HILLS MEMORANDUM DATE: June 25,1998 TO: Mayor and City Council FROM: Brian Fritsinger, City Administrat r SUBJECT: Negotiated Renewal Franchise with Meredith Cable Background As the Council is aware, the North Suburban Cable Commission ("Commission") has completed an over three-year process of negotiations with the cable company resulting in a proposed renewed cable franchise being recommended to the member cities of the Commission. The federal law proscribes the structure of the negotiations and limits the authority of the cities to deny the renewal. While the renewal is not automatic, the City may also not arbitrarily deny renewal. Basically, the City must renew the franchise unless the cable company fails to meet an identified community need, considering the cost of ineeting that need. Therefore, the Commission undertook an extensive community needs assessment which all cities participated in and the results of which were reviewed over a year ago. Since then, extensive negotiations have been undertaken to arrive at a system which the Commission recommends does meet the identified community needs of the member cities, considering the cost of ineeting those needs. Attached is a proposed franchise which incorporates the negotiations with the cable company. The attached franchise is recommended by the Commission for the member communities. Please note that the system is a ten (10) city system, and the franchises for all ten (10) cities are identical, except for individual city definition and notice sections. For consistency and enforcement purposes, the proposed franchise is in much the same form as the current franchise. There are, however, some significant changes which are highlighted below. Significant Agreement Changes 1. "Cable Service" is defined as the state and federal law from time to time will define it. However, included in the definition, regardless of the federal law definition are Institutional Network services, which will no doubt include significant data transmission service. This will provide adequate flexibility for the document in an environment of ever changing kinds of cable services. r y Memorandum, Negotiated Renewal Franchise with Meredith Cable Page Two June 25, 1998 2. "Gross Revenue," upon which the company pays a five percent (5%) franchise fee, is expanded not only to include revenue from all Cable Services, as defined above, but also makes clear that fees for such presumed revenue producers as advertising, Internet service, and cable modem service will be captured for the purpose of collecting City revenue. It is anticipated as technology changes occur, the member cities will increase revenues in the areas identified. Other Cable Commissions have not typically been able to negotiate these items into their franchise agreement. 3. The franchise is still "non-exclusive" which is required by law. Therefore, the City can grant franchises to as many competitors as it may wish in order to provide service in the City. 4. The franchise term is for fifteen (15) years. This is standard around the country and is argued by the company to be necessary for them to adequately finance the significant upgrade of the cable system. Some policy makers argue that a shorter term will give the system more flexibility to be upgraded and give the City more leverage in "getting things" from the company. The past franchise was for fifteen (15) years, and the systems were constantly and significantly upgraded, this being in the best interest of the company anyway. The Commission recommends a fifteen (15) year franchise. There is some belief that laws are changing in such a manner that franchising as we now know it will be eliminated. As a result, while historically cable companies have needed the long-term agreements to finance their business operations, many are agreeing to short- term agreements. 5. The franchise is for the corporate boundaries of the City, but the system is really one system for the ten (10) city area, and is required to be interconnected with the systems which border the ten (10) city area. The Commission required this in an attempt to keep the North Suburban System a part of a greater metropolitan communications network, especially since many of the school district boundaries and the county boundaries extend beyond the ten (10) city area. 6. Subscriber and Institutional Network drops must be provided to all institutions listed in Exhibit B. Staff has included the following Arden Hills locations in this document: • City Hall • Maintenance Garage • Ramsey County Library • Mounds View High School • Valentine Hills Elementary School • Bethel College • Lake Johanna Volunteer Fire Department, Station 41 • Army Reserve Center , Memorandum, Negotiated Renewal Franchise with Meredith Cable Page Three June 25, 1998 In addition, we are still discussing whether any lift stations should be included for future SCADA systems. The institutions will be connected to both networks free of charge and current uses will continue free of charge. Additionally, three (3) upstream and three (3) downstream channels will be provided for non-video purposes, free of charge, with additional non- video use of this network provided for "cost plus 45%" or the "most favorable comparable user rate." For the six fibers to the nodes, additional use of these fibers will be on an "actual cost only" basis. 7. Construction will be completed on or before November 30, 2000. 8. The new franchise has attempted to interface with right-of-way ordinances. Since Arden Hills has not adopted such an ordinance, the franchise needed to answer questions regaxding construction or access to rights-of-way in the City. However, should Arden Hills adopt such an ordinance, that ordinance will pre-empt the franchise in Section 3, construction standards and permitting, and 8.5(c), mapping. In all other situations, the cable franchise will prevail over conflicting ordinances, except for those other situations where the City is involved in a lawful exercise of its police power. 9. Undergrounding. The company will have to put any new construction underground where all other utility lines are underground, unless the City elects to require otherwise. In other words, the City has complete authority to require whatever policy it wishes in this area. Absent such an action, the general rule, above, will apply to the cable company. 10. A performance bond of $500,000 will be maintained by the company, and the company will be fully insured and agrees to defend, hold harmless and indemnify the City regarding any action of Grantee related to the franchise and any action resulting from the City's administration or enforcement of the franchise. 11. The company must maintain a$25,000 Letter of Credit per City from which the City may draw monies to enforce various penalties and fines delineated in the franchise. 12. The City retains the authority to review any qualifying transfer of ownership. The City further retains its right to purchase the system for the value of the consideration proposed in such a transaction. The major provisions of the franchise are not substantively changed from the previous franchise except to bring the document in compliance with current law. r ~ Memorandum, Negotiated Renewal Franchise with Meredith Cable Page Four June 25, 1998 Requested Action The City Council is asked to adopt Ordinance No. 307 and direct the City Administrator to publish a summary of this ordinance in accardance with Minnesota State Statutes. BF/sls t r CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE SUMMARY ORDINANCE NO. 307 "AN ORDINANCE GRANTING A FRANCHISE TO MEDIAONE TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CITY OF ARDEN HILLS; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE." On the 29t'' day of June, 1998, the Arden Hills City Council adopted Ordinance No. 307, and pursuant to local and Minnesota State law by five affirmative votes, directed that a summary of the ordinance be published in the City's Official Newspaper, and that a printed copy of Ordinance No. 307 be posted on the City's bulletin board and otherwise be made available for inspection by any person during regular business hours at the office of the City Administrator at 4364 West Round Lake Road, Arden Hills, MN 55112. STATEMENT OF INTENT AND PURPOSE The City intends, by the adoption of this Franchise, to bring about the further development of a Cable System, and the continued operation of it. Adoption of this Franchise is, in the judgement of the Council, in the best interests of the City and its residents. FINDINGS The City Council makes the following findings: 1. The company technical ability, financial condition, legal qualifications, and character were considered and approved; 2. The company plans for constructing, upgrading, and operating the System were considered and found adequate and feasible; 3. The Franchise complies with applicable laws and regulations; and 4. The Franchise is nonexclusive. SECTION 1. SHORT TITLE AND DEFINITIONS This Section names the Franchise Ordinance as the Cable Franchise Ordinance and contains many definitions regarding the Cable System. r PAGE TWO ORDINANCE NO. 307 JUNE 29,1998 SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS This Section grants a nonexclusive, fifteen (15) year Franchise, pursuant to the company's proposal and additional requirements contained int he Franchise. This Section further provides for free subscriber service to designated public and educational institutions. SECTION 3. CONSTRUCTION STANDARDS This Section provides for permitting requirements, construction code compliance, undergrounding requirements, and other conditions on the use of the Rights-of-Way. SECTION 4. DESIGN PROVISIONS This Section provides for the construction of a System providing 750 MHZ capacity and which is fully activated with the capability of a minimum of up to eight-one (81) video channels. The company will develop, construct, and operate a System capable of providing non-video services such as high-speed data transmission, Internet access, and other competitive services which shall be activated as Marketplace Need dictates. The company will complete all construction related to the System upgrade on or before November 30, 2000. The Section contains requirements regarding testing and technical standards and provides for four (4) channels to be interconnected with all adjoining cable systems. SECTION 5. SERVICE PROVISIONS This Section provides for rate regulation when permitted by law, customer service standards, late fees and subscriber contracts. SECTION 6. ACCESS CHANNEL(S) PROVISIONS The company will provide twelve (12) channels for public, education and government programming. The company will continue to comply with all requirements regarding community programming operations and funding, and in addition will increase the funding by $667,286 over the life of the Franchise. [ ( PAGE THREE ORDINANCE NO. 307 JUNE 29, 1998 SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS This Section contains provisions requiring the company to dedicate certain capacity for use by designated institutions, and contains terms and conditions for the usage and performance of this institutional network. SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS This Section contains provisions requiring the company to pay quarterly to City, or its delegatee, a Franchise Fee in an amount equal to five percent (5%) of its quarterly Gross Revenues. In addition, the City shall have the right to require the company to provide copies of any records, and the company must file with the City a report of all Gross Revenues and shall furnish such other reasonable reports with respect to operations as may be required. If requested, the company shall furnish the maps, plats, and permanent records of the location and character of all facilities. Finally, the City may require evaluation sessions at any time during the term of this Franchise. As a result of the review session, the company will meet with City and undertake good faith efforts to reach agreement on changes and modifications to the Franchise which are both economically and technically feasible. SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS This Section contains provisions requiring the company to furnish a performance bond to City in the amount of $500,000 and deliver to City an unconditional Letter of Credit from a National or State Bank approved by City in the amount of $25,000 to secure compliance with the terms of the Franchise. In addition, this Section provides that the City and its agents shall not be liable for any loss or damage arising out of any action of the company with respect to this Franchise. Finally, as a part of the indemnification above, the company shall maintain a comprehensive general liability insurance policy for any and all damages and penalties which may arise as a result of this Franchise in the sum of not less than $1,000,000 for personal injury or death of any one Person, and $2,000,000 for personal injury or death of two or more Persons in any one occurrence, $500,000 for property damage to any one person and $2,000,000 far property damage resulting from any one act ar occurrence. i t PAGE FOUR ORDINANCE NO. 307 JUNE 29,1998 SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE This Section provides that the City reserves the right to revoke this Franchise, if it is determined by City that the company has violated material provision(s) of this Franchise, has attempted to evade any of the provisions of the Franchise; or has practiced fraud or deceit upon City. This Section also contains provisions regarding abandonment of service and removal of equipment and requires that the company receive approval prior to sale or transfer. SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS This Section prohibits discrimination and requires subscriber privacy by the company. SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS This Section prohibits unauthorized connections to the System or damage to the System. SECTION 13. MISCELLANEOUS PROVISIONS This Section contains a variety of requirements concerning Franchise renewal, amendments, compliance with applicable law, and interpretation of the Franchise. SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS This Section requires that the Franchise be published in accordance with applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of acceptance by the company in accordance with the provisions of Section 14.2. The company shall accept this Franchise within sixty (60) days of its enactment by the City Council provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied with and all applicable timelines have run for the adoption of a City ordinance. Adoption Date: Passed by the City Council of the City of Arden Hills, the 290 day of June, 1998. /s/Brian Fritsinger, City Administrator L 4 ORDINANCE NO. 307 CITY OF ARDEN HILLS CABLE TELEVISION FRANCHISE ORDINANCE Date: July 15,1998 T Prepared by: Thomas D. Creighton Robert J. V. Vose Bernick and Lifson, P.A. 1200 The Colonnade 5500 Wayzata Boulevard Minneapolis, Minnesota 55416 Telephone: (612) 546-1200 Facsimile: (612) 546-1003 STATEMENT OF INTENT AND PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 FINDINGS ...................................................................1 SECTION 1. SHORT TITLE AND DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1. Short Title ..................................................2 2. Definitions ..................................................2 SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . 5 1. Grant of Franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2. Grant of Nonexclusive Authoritv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3. Lease or Assignment Prohibited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4. Franchise Term ..............................................6 5. Previous Franchises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6. Compliance with AVplicable Laws, Resolutions and Ordinances. 6 7. Rules of Grantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8. Territorial Area Involved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9. Written Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 10. Subscriber Network Drops to Designated Buildines . . . . . . . . . . . . . . . . . 8 SECTION 3. CONSTRUCTION STANDARDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1. Ruistration. Permits and Construction Codes . . . . . . . . . . . . . . . . . . . . . . 9 2. Repair of Rights-of-Wav and Property,............................ 9 3. Conditions on Right-of-Way Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4. UnderQrounding of Cable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 5. Installation of Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 6. Safetv Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 SECTION 4. DESIGN PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1. Svstem Upgrade: Minimum Channel Capacitv . . . . . . . . . . . . . . . . . . . . 11 2. Construction Timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3. Interruption of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4. Technical Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 5. Snecial Testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 6. Drop Testiny- and Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 7. FCC Reports . ..............................................14 8. Interconnection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 9. Nonvoice Return Capabilitx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 10. Lockout Device .............................................14 • F SECTION 5. SERVICE PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1. Regulation of Service Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2. Non-Standard Installations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3. SalesProcedures ............................................15 4. Subscriber Inquirv and Complaint Procedures . . . . . . . . . . . . . . . . . . . . . 15 5. Subscriber Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 6. Refund Policv . .............................................16 7. Late Fees ..................................................16 8. Office Policv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 SECTION 6. ACCESS CHANNEL(S) PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1. Public. Educational and Government Access . . . . . . . . . . . . . . . . . . . . . . 16 2. Charges for Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3. Access Rules ...............................................17 4. AccessSupport . ............................................17 5. Studio Relocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 6. Regional Channel 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 7. State and Federal Law compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . 18 1. CapacitX . .................................................18 2. Grantee's Use of Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3. End-User Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 4. Service Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . 20 1. Administration of Franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. Delegated AuthoritX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3. Franchise Fee . .............................................20 4. Access to Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5. Reports and Maps to be Filed with CitX . . . . . . . . . . . . . . . . . . . . . . . . . . 21 6. Periodic Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS . . . . . . . . . . . . . . . . . . . 21 1. Performance Bond . .........................................21 2. Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 3. Indemnification of Citv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4. Insurance ..................................................25 SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE 26 1. City's Right to Revoke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2. Procedures for Revocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3. Abandonment of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4. Removal After Abandonment. Termination or Forfeiture. . . . . . . . . . . . 27 5. Sale or Transfer of Franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 1. Discriminatorv Practices Prohibited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2. Subscriber Privacv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 SECTION 12. LTNAUTHORIZED CONNECTIONS AND MODIFICATIONS . . . . . . . . . . . . . . . . . . 31 1. Unauthorized Connections or Modifications Prohibited . . . . . . . . . . . . . 31 2. Removal or Destruction Prohibited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3. Penaltv ....................................................31 SECTION 13. - MISCELLANEOUS PROVISIONS . . . . . . . . . . . . . . . . . . . . . . .R. . . . . . . . . . . . . . . . . 31 1. Franchise Renewal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 2. Work Performed by Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3. Amendment of Franchise Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4. Compliance with Federal. State and Local Laws . . . . . . . . . . . . . . . . . . . 32 5. Nonenforcement bv City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 6. Riizhts Cumulative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 7. Grantee Acknowled,gment of Validitv of Franchise . . . . . . . . . . . . . . . . . 33 SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS . . . . . . . . . . 33 1. Publication: Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2. Acceptance . ...............................................33 s ORDINANCE NO. 307 AN ORDINANCE GRANTING A FRANCHISE TO MEDIAONE NORTH CENTRAL COMMUNICATIONS CORP. TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CiTY OF AR.DEN HILLS; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS-OF-WAY [IN CONJUNCTION WITH THE CITY'S RIGHT-OF-WAY ORDINANCE, IF ANY, AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN; The City Council of the City of Arden Hills ordains: STATEMENT OF INTENT AND PURPOSE The Ciry intends, by the adoption of this Franchise, to bring about the further development of a Cable System, and the continued operation of it. Such development can contribute significantly to the communication needs and desires of the residents and citizens of the City and the public generally. Further, the City may achieve better utilization and improvement of public services and enhanced economic development with the development and operation of a Cable Communication System. Adoption of this Franchise is, in the judgment of the Council, in the best interests of the City and its residents. FINDINGS In the review of the request and proposal for renewal by Grantee and negotiations related thereto, and as a result of a public hearing, the City Council makes the following findings: 1. The Grantee's technical ability, financial condition, legal qualifications, and character were considered and approved in a full public proceeding after due notice and a reasonable opportunity to be heard; 2. Grantee's plans for constructing, upgrading, and operating the System were considered and found adequate and feasible in a full public proceeding after due notice and a reasonable opportunity to be heard; 3. The Franchise granted to Grantee by the City complies with the existing applicable Minnesota Statutes, federal laws and regulations; and 4. The Franchise granted to Grantee is nonexclusive. 1 5 SECTION 1. SHORT TITLE AND DEFINITIONS 1. Short Title. This Franchise Ordinance shall be known and cited as the Cable Franchise Ordinance. 2. Definitions. For the purposes of this Franchise, the following terms, phrases, words, and their derivations shall have the meaning given herein. When not inconsistent with the context, words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. The word "may" is directory and discretionary and not mandatory. a. "Basic Cable Service" means any service tier which includes the lawful retransmission of local television broadcast signals and any public, educational, and governmental access programming required by the Franchise to be carried on the basic tier. Basic Cable Service as defined herein shall not be inconsistent with 47 U.S.C. § 543(b)(7). b. "Citv" means City of Arden Hills, a municipal corporation, in the State of Minnesota, acting by and through its City Council, or its lawfully appointed designee. c. "Citv Council" means the governing body of the City. d. "Cable Service" or "Service" means the provision of communications and/or entertainment services as "Cable Service" is defined by Minn. Stat. § 238.01 et seq. and 47 U.S.C § 521 et seq., as may be amended from time to time, but including Institutional Network services. e. "Cable S, stem" or "Svstem" means a system of antennas, cables, wires, lines, towers, waveguides, or other conductors, Converters, equipment, or facilities located in City and designed and constructed for the purpose of producing, receiving, transmitting, amplifying, or distributing audio, video, and data. System as defined herein shall not be inconsistent with the definitions set forth in Minn. Stat. 238.02, subd. 3 and 47 U.S.C. § 522(7). f. "Class IV Cable Channel" means a signaling path provided by a Cable System to transmit signals of any type from a Subscriber terminal to another point in the System. g. "Commercial Need" or "Marketplace Need" means such need or market demand which City and Grantee may jointly determine requires action or performance by Grantee as specifically set forth in this Franchise. Such determination shall be based upon evidence and information presented by 2 J f City, Grantee and other interested parties at a duly noticed public proceeding. Grantee shall have an opportunity to present evidence regarding the level of market demand, the cost of ineeting such demand and the availability of technologies to meet such demand. Any decision regarding Commercial or Marketplace Need which requires action by Grantee shall not be unreasonable. h. "Converter" means an electronic device which converts signals to a frequency acceptable to a television receiver of a Subscriber and by an appropriate selector permits a Subscriber to view all Subscriber signals included in the service. i. "Dron" means the cable that connects the ground block on the Subscriber's residence or institution to the nearest feeder cable of the System. j. "FCC" means the Federal Communications Commission and any legally appointed, designated or elected agent or successor. k. "Franchise" or "Cable Franchise" means this ordinance and the regulatory and contractual relationship established hereby. 1. "Grantee" is MediaOne North Central Communications Corp., its lawful successors, transferees or assignees. M. "Gross Revenues" means all revenue received directly or indirectly by the Grantee, its affiliates, subsidiaries, parent, or person in which Grantee has financial interest of five percent (5 or more, from the operation of its System within City including, but not limited to, all Cable Service fees, Franchise Fees, PEG Fees, late fees, Installation and reconnection fees, upgrade and downgrade fees, advertising revenue, Converter rentai fees, Lockout Device fees, fees related to commercial and institutional usage of the I-net, Internet access fees, cable modem service fees and interest. The term Gross Revenues shall not include any taxes on services furnished by Grantee imposed by any municipality, state, or other governmental unit and collected by Grantee for such governmental unit. n. "Installation" means the connection of the System from feeder cable to the point of connection with the Subscriber Converter or other terminal equipment. o. "Institutional Network" or "I-net" means the discrete communications network and services related to such network provided by Grantee to identified institutions as required by this Franchise. 3 p. "Lockout Device" means an optional mechanical or electrical accessory to a Subscriber's terminal which inhibits the viewing of a certain program, certain channel, or certain channels provided by way of the Cable Communication System. q. "Memorandum of Understanding" or "MOU" means that certain agreement dated November 3, 1994 regarding PEG access funding, creation of a "PEG Fee" and certain rate regulatory issues. r. "North Suburbs Access Corporation" means that certain non-profit corporation or its lawful successor, designee, or assignee, which is delegated authority and responsibility for providing certain community programming functions including public access. s. "North Suburban S s~tem" means the Cable System located in those municipalities collectively comprising the North Suburban Cable Service territory as originally approved by the Minnesota Cable Communications Board. t. "Pay Television" means the delivery over the System of pay-per-channel or pay-per-program audio-visual signals to Subscribers for a fee or charge, in addition to the charge for Basic Cable Service or Cable Programming Services. U. "Person" is any person, firm, partnership, association, corporation, company, or other legal entity. v. "Proposal" means the Proposal for Franchise Renewal dated May 13, 1997, submitted to the North Suburban Cable Communications Commission by Group W Cable of the North Suburbs, Inc., as amended by the revised Renewal Proposal submitted under cover letter dated August, 4, 1997, and related correspondence and prior agreements or resolutions which are attached hereto as Exhibit A. w. "Right-of-WaX" or "Rights-of-Way" means the area on, below, or above any real property in City in which the City has an interest including, but not limited to any street, road, highway, alley, sidewalk, parkway, park, skyway, or any other place, area, or real property owned by or under the control of City, including other dedicated Rights-of-Way for travel purposes and utility easements. X. "RiQht-of-Way Ordinance"means the ordinance codifying requirements regarding regulation, management and use of Rights-of-Way in City, including registration and permitting requirements. 4 Y. "Standard Installation" means any residential installation which can be completed using a Drop of 250 feet or less. Z. °Subscriber" means any Person who lawfully receives service via the System. In the case of multiple office buildings or multiple dwelling units, the "Subscriber" means the lessee, tenant or occupant. SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS 1. Grant of Franchise. This Franchise is granted pursuant to the terms and conditions contained herein. Grantee shall comply with all provisions of its Proposal, which is expressly incorporated herein by reference. Failure of Grantee to provide a System as described in its Proposal, or meet obligations and comply with all provisions therein, shall be deemed a violation of this Franchise. 2. Grant of Nonexclusive AuthoritX. a. The Grantee shall have the right and privilege, subject to the permitting and other lawful requirements of City ordinance, rule or procedure, to construct, erect, and maintain, in, upon, along, across, above, over and under the Rights-of-Way in City a Cable System and shall have the right and privilege to provide Cable Service. The System constructed and maintained by Grantee or its agents shall not interfere with other uses of the Rights-of-Way. Grantee shall make use of existing poles and other above and below facilities available to Grantee to the extent it is technically and economically feasible to do so. b. Notwithstanding the above grant to use Rights-of-Way, no Right-of-Way shall be used by Grantee if City determines that such use is inconsistent with the terms, conditions, or provisions by which such Right-of-Way was created or dedicated, or with the present use of the Right-of-Way. c. This Franchise shal] be nonexclusive, and City reserves the right to grant a Franchise to any Person at any time during the period of this Franchise for the provision of Cable Service. The terms and conditions of any such Franchise shall be, when taken as a whole, no less burdensome or more beneficial than those imposed upon Grantee pursuant to this Franchise. 3. Lease or Assignment Prohibited. No Person may lease Grantee's System for the purpose of providing Service until and unless such Person shall have first obtained . and shall currently hold a valid Franchise or other lawful authorization containing substantially similar burdens and obligations to this Franchise. Any assignment of 5 rights under this Franchise shall be subject to and in accordance with the requirements of Section 10, Paragraph 5. 4. Franchise Ter.m. This Franchise shall be in effect for a period of fifteen (15) years from the date of acceptance by Grantee, unless sooner renewed, revoked or terminated as herein provided. 5. Previous Franchises. Upon acceptance by Grantee as required by Section 13 herein, this Franchise shall supersede and replace any previous Ordinance granting a Franchise to Grantee. 6. Compliance with Anolicable Laws. Resolutions and Ordinances. a. The terms of this Franchise shall define the contractual rights and obligations of Grantee with respect to the provision of Cable Service and operation of the System in City. However, the Grantee shall at all times during the term of this Franchise be subject to all lawful exercise of the police power, statutory rights, local ordinance-making authority, and eminent domain rights of City. Except as provided below, any modification or amendment to this Franchise, or the rights or obligations contained herein, must be within the lawful exercise of City's police power, in which case the provision(s) modified or amended herein shall be specifically referenced in an ordinance of the City authorizing such amendment or modification. This Franchise may also be modified or amended with the written consent of Grantee as provided in Section 13.3 herein. b. Grantee shall comply with the terms of any City ordinance or regulation of general applicability which addresses usage of the Rights-of-Way within City which may have the effect of superseding, modifying or amending the terms of Section 3 and/or Section 8.5(c) herein, except that Grantee shall not, through application of such City ordinance or regulation of Rights-of- Way, be subject to additional burdens with respect to usage of Rights-of- Way which exceed burdens on similarly situated Rights-of-Way users. c. In the event of any conflict between Section 3 and/or Section 8.5 (c) of this Franchise and any City ordinance or regulation which addresses usage of the Rights-of-Way, the conflicting terms in Section 3 and/or Section 8.5 (c) of this Franchise shall be superseded by such City ordinance or regulation, except that Grantee shall not, through application of such City ordinance or regulation of Rights-of-Way, be subject to additional burdens with respect to usage of Rights-of-Way which exceed burdens on similarly situated Rights-of-Way users. 6 d. In the event any City ordinance or regulation which addresses usage of the Rights-of-Way adds to, modifies, amends, or otherwise differently addresses issues addressed in Section 3 and/or Section 8.5 (c) of this Franchise, Grantee shall comply with such ordinance or regulation of general applicability, regardless of which requirement was first adopted except that Grantee shall not, through application of such City ordinance or regulation of Rights-of-Way, be subject to additional burdens with respect to usage of Rights-of-Way which exceed burdens on similarly situated Rights-of-Way users. e. In the event Grantee cannot determine how to comply with any Right-of- Way requirement of City, whether pursuant to this Franchise or other requirement, Grantee shall immediately provide written notice of such question, including Grantee's proposed interpretation, to the City with copy to the North Suburban Cable Communications Commission, in accordance with Section 2.9. The City or Commission shall provide a written response within fourteen (14) days of receipt indicating how the requirements cited by Grantee apply. Grantee may proceed in accordance with its proposed interpretation in the event a written response is not received within seventeen (17) days of mailing or delivering such written question. 7. Rules of Grantee. The Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable said Grantee to exercise its rights and perform its obligations under this Franchise and to assure uninterrupted service to each and all of its Subscribers; provided that such rules, regulations, terms and conditions shall not be in conflict with provisions hereto, the rules of the FCC, the laws of the State of Minnesota, City, or any other body having lawful jurisdiction. 8. Territorial Area Involved. This Franchise is granted for the corporate boundaries of City, as it exists from time to time. In the event of annexation by City, or as development occurs, any new territory shall become part of the territory for which this Franchise is granted provided, however, that Grantee shall not be required to extend service beyond its present System boundaries unless there is a minimum of 50 homes per cable mile for underground plant and 35 homes per cable mile for overhead plant. Access to cable service shall not be denied to any group of potential residential cable Subscribers because of the income of the residents of the area in which such group resides. Grantee shall be given a reasonable period of time to construct and activate cable plant to service annexed or newly developed areas but in no event not to exceed twelve (12) months from notice thereof by City to Grantee and qualification pursuant to the density requirements of this Subsection 8. 9. 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 7 officer of Grantee or City's Administrator of this Franchise or forty-eight (48) hours 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 whom notice is being given, as follows: If to City: City of Arden Hills 4364 W. Round Lake Road Arden Hills, Minnesota 55112 Attention: City Manager/Administrator With copies to: North Suburban Cable Communications Commission 950 Woodhill Drive Roseville, Minnesota 55113 And to: Thomas D. Creighton, Esq. and Robert J. V. Vose, Esq. Bernick and Lifson, P.A. 5500 Wayzata Boulevard, Suite 1200 Minneapolis, Minnesota 55416 If to Grantee: General Manager MediaOne . 950 Woodhill Drive Roseville, Minnesota 55113 With copies to: John F. Gibbs, Esq. Robins, Kaplan, Miller & Ciresi, L.L.P. 2800 LaSalle Plaza 800 LaSalle Ave. So. Minneapolis, Minnesota 55402 Such addresses may be changed by either party upon notice to the other party given as provided in this Section. 10. Subscriber Network Drops to Designated Buildings. Grantee shall provide, free of charge, Installation of one (1) subscriber network Drop, one (1) cable outlet, one (1) Converter, if necessary, and monthly Basic Cable Service without charge to the institutions identified on Exhibit B attached hereto and made a part hereof, and such other public or educational institutions subsequently designated by City which is located five hundred (500) feet or less from the existing Subscriber network. Any such institution located more than five hundred (500) feet shall be connected if such institution agrees to reimburse Grantee for Grantee's actual costs in excess of the five hundred (500) foot installation actual costs. Additional subscriber network Drops and/or outlets in any of the locations identified on Exhibit B will be installed by Grantee at the cost of Grantee's time 8 and material. Alternatively, said institution may add outlets at its own expense, as long as such Installation meets Grantee's standards. Grantee shall have three (3) months from the date of City designation of additional institution(s) to complete construction of the Drop and outlet unless weather or other conditions beyond the control of Grantee requires more time. The provision of Institutional Network service is addressed in Section 7 herein. SECTION 3. CONSTRUCTION STANDARDS 1. Registration. Permits and Construction Coaes. a. Grantee shall strictly adhere to all state and local laws and building and zoning codes currently or hereafter apglicable to location, construction, installation, operation or maintenance of the System in City and give due consideration at all times to the aesthetics of the property. b. Failure to obtain permits or comply with permit requirements shall be grounds for revocation of this Franchise, or any lesser sanctions provided herein or in any other applicable law. 2. Repair of Rights-of-Wav and PropertY. Any and all Rights-of-Way, or public or private property, which are disturbed or damaged during the construction, repair, replacement, relocation, operation, maintenance, expansion, extension or reconstruction of the System shall be promptly and fully restored by Grantee, at its expense, to the same condition as that prevailing prior to Grantee's work, as determined by City. If Grantee shall fail to promptly perform the restoration required herein, after written request of City and reasonable opportunity to satisfy that request, Ciry shall have the right to put the Rights-of-Way, public, or private property back into good condition. In the event City determines that Grantee is responsible for such disturbance or damage, Grantee shall be obligated to fully reimburse City for such restoration. 3. Conditions on Right-of-Wa, Use. a. Nothing in this Franchise shall be construed to prevent City from constructing, maintauung, repairing or relocating sewers; ;rading, paving, maintaining, repairing, relocating and/or altering any Right-of-Way; constructing, laying down, repairing, maintaining or relocating any water mains; or constructing, maintaining, relocating, or repairing any sidewalk or other public work. b. All System transmission and distribution structures, lines and equipment erected by the Grantee within City shall be located so as not to obstruct or 9 . , interfere with the use of Rights-of-Way except for normal and reasonable obstruction and interference which might occur during construction and to cause minimum interference with the rights of property owners who abut any of said Rights-of-Way and not to interfere with existing public utility installations. c. If at any time during the period of this Franchise City shall elect to alter or change the grade or location of any Right-of-Way, the Grantee shall, at its own expense, upon reasonable notice by City, remove and relocate its poles, wires, cables, conduits, manholes and other fixtures of the System, and in each instance comply with the reasonable and lawful standards and specifications of City. d. The Grantee shall not place poles, conduits, or other fixtures of System above or below ground where the same will interfere with any gas, electric, telephone, water or other utility fixtures and all such poles, conduits, or other fixtures placed in any Right-of-Way shall be so placed as to comply with a'll reasonable and lawful requirements of City. e. The Grantee shall, upon request of any Person holding a moving permit issued by City, temporarily move its wires or fixtures to permit the moving of buildings with the expense of such temporary removal to be paid by the Person requesting the same, and the Grantee shall be given not less than ten (10) days advance written notice to arrange for such temporary changes. f. The Grantee shall have the authority to trim any trees upon and overhanging the Rights-of-Way of City so as to prevent the branches of such trees from coming in contact with the wires and cables or other facilities of the Grantee. g. Grantee shall use its best efforts to give reasonable prior notice to any adjacent private property owners who will be negatively affected or impacted by Grantee's work in the Rights-of-Way. 4. Undergrounding of Cable. Unless otherwise required by action of City Council, Grantee must place newly constructed facilities underground in areas of City where all other utility lines are placed underground. Amplifier boxes and pedestal mounted terminal boxes may be placed above ground if existing technology reasonably requires, but shall be of such size and design and shall be so located as not to be unsightly or unsafe, all pursuant to plans submitted with Grantee's permit application(s) and approved by City. 5. Installation of Facilities. No poles, conduits, amplifier boxes, pedestal mounted terminal boxes, similar structures, or other wire-holding structures shall be erected or installed by the Grantee without required permit of City. 10 6. Safetv Requirements. a. The Grantee shall at all times employ ordinary and reasonable care and shall install and maintain in use nothing less than commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage or injuries. b. The Grantee shall install and maintain its System and other equipment in accordance with City's codes and the requirements of the National Electric Safety Code and all other applicable FCC, state and local regulations, and in such manner that they will not interfere with City communications technology related to health, safety and welfare of the residents. c. All System structures, and lines, equipment and connections in, over, under and upon the Rights-of-Way of City, wherever situated or located, shall at all times be kept and maintained in good condition, order, and repair so that the same shall not menace or endanger the life or property of City or any Person. SECTION 4. DESIGN PROVISIONS 1. Svstem Upgrade: Minimum Channel Capacitx. a. Grantee shall develop, construct and operate for the term of this Franchise a System providing 750 MHz capacity and which is fully activated with the capability of delivering to all Subscribers capable of receiving them a minimum of up to 81 video programmed channels. Construction will be completed and channels activated as described in Exhibit C attached. b. The System will utilize a hybrid fiber-coaxial architecture as detailed in the Proposal. In addition, the System will be designed with the capability to transmit return signals upstream in the 5- 40 MHz spectrum which shall be activated as Commercial Need dictates. Finally, in conjunction with the upgrade, Grantee shall replace all existing headend equipment with state-of- the-art standard frequency headend equipment. c. Grantee shall develop, construct and operate a System capable of providing non-video services such as high-speed data transmission, Internet access, and other competitive services which shall be activated as Marketplace Need dictates. Grantee may use 200 MHz of the total 750 MHz System capacity for the provision of such services. 11 d. During the design, walkout and preliminary construction activities related to upgrade of the System, Grantee shall seek to identify the non-video interests of the business community within City and will seek to quantify business community demand for non-video services. Grantee shall report the results of its investigation into business demand for non-video services to the City or its designee no later than one (1) year from the commencement date of the Franchise. e. All final programming decisions remain the discretion of Grantee in accordance with the Proposal, provided that Grantee notifies City and Subscribers in writing thirty (30) days prior to any channel additions, deletions, or realignments, and further subject to Grantee's signal carriage obligations hereunder and pursuant to 47 U.S.C. § 531-536, and further subject to City's rights pursuant to 47 U.S.C. § 545. Location and relocation of the PEG Channels shall be governed by Section 6, 1. (c). 2. Construction Timetable. a. Grantee shall complete all construction related to the System upgrade required by Section 4 herein on or before November 30, 2000, in accordance with the specific timeline identified in Exhibit C attached. Failure to timely complete such construction shall be a violation of this Franchise. b. The System, once upgraded, shall continue to offer Service to all dwelling units serviceable prior to upgrade and shall extend Service to any area within the corporate boundaries of City which was not previously constructed which exceeds a density of 35 dwelling units per cable mile or greater for overhead plant and 50 dwelling units per cable mile for underground plant. c. Within ninety (90) days after the commencement of the renewal term of this Franchise, Grantee shall commence application for all necessary permits, licenses, certificates and authorizations which are required in the conduct of its business. Failure to timely commence application for the aforementioned authorizations shall be a violation of this Franchise. d. Within ninety (90) days after commencement of the term of this renewed Franchise, Grantee will commence System design, walkout and all other preliminary construction activities related to upgrade of the System and shall give written notice thereof to City upon commencement of such activities. 3. Interruption of Service. The Grantee shall interrupt service only for good cause and for the shortest time possible. Such interruption shall occur during periods of 12 minimum use of the System. If service is interrupted for a total period of more than forty eight (48) hours in any thirty (30) day period, Subscribers shall be credited pro rata for such interruption. 4. Technical Standards. The technical standards used in the operation of the System shall comply, at minimum, with the technical standards promulgated by the FCC relating to Cable Systems pursuant to Title 47, Section 76.601 to 76.617, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. 5. Special Testing. a. The City shall have the right to inspect all construction or installation work performed pursuant to the provisions of the Franchise. In addition, the City may require special testing of a location or locations within the System if there is a particular matter of controversy or unresolved complaints regarding such construction or installation work or pertaining to such location(s). Demand for such special tests may be made on the basis of complaints received or other evidence indicating an unresolved controversy or noncompliance. Such tests shall be limited to the particular matter in controversy or unresolved complaints. The City shall endeavor to so arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers caused by such testing. b. Before ordering such tests, Grantee shall be afforded thirty (30) days following receipt of written notice to investigate and, if necessary, correct problems or complaints upon which tests were ordered. The City shall meet with Grantee prior to requiring special tests to discuss the need for such and, if possible, visually inspect those locations which are the focus of concern. If, after such meetings and inspections, City wishes to commence special tests and the thirty (30) days have elapsed without correction of the matter in controversy or unresolved complaints, the tests shall be conducted at Grantee's expense by a qualified engineer selected by City and Grantee, and Grantee shall cooperate in such testing. 6. Drop Testing and Replacement. Grantee shall insert a 750 MHz carrier at a level lOdb below the video carriers that will be measured by Grantee as a normal procedure during all service calls. In addition, the Drops and related passive equipment will be inspected during Installations to assure that the Drop and passive equipment can pass the full 750 MHz System capacity. In the event measurement of the carrier or the inspection demonstrate that a Drop or associated passive equipment do not pass the fu11750 MHz, the Subscriber address will be recorded by Grantee and Grantee shall provide City, or its designee, upon request a report indicating the addresses where Drops or associated passive equipment have failed. Grantee shall replace all failing Drops and/or associated passive equipment at the 13 time the address upgrades service to a level which requires a signal above the 550 MHz spectrum at no separate charge to the individual subscriber. 7. FCC Reports. The results of any tests required to be filed by Grantee with the FCC shall upon request of City also be filed with the City or its designee within ten (10) days of the conduct of such tests. 8. Interconnection. The System servicing the Cities of Arden Hills, Falcon Heights, Lauderdale, Little Canada, Mounds View, New Brighton, North Oaks, Roseville, St. Anthony, and Shoreview shall continue to be completely interconnected. In addition, Grantee shall make available for interconnection purposes one (1) six (6) MHz channel for forward video purposes, one (1) six (6) MHz channel for return video purposes, one (1) six (6) MHz channel for forward data or other purposes, and one (1) six (6) MHz channel for return data or other purposes between all Systems adjacent to the North Suburban System and under common ownership with Grantee. 9. Nonvoice Return CapabilitX. Grantee is required to use cable and associated electronics having the technical capacity for nonvoice return communications. 10. Lockout Device. Upon the request of a Subscriber, Grantee shall make available a Lockout Device at no additional charge to Subscribers. SECTION 5. SERVICE PROVISIONS 1. Regulation of Service Rates. a. The City may regulate rates for the provision of Cable Service, equipment, or any other communications service provided over the System to the extent allowed under federal or state law(s). City reserves the right to regulate rates for any future services to the extent permitted by law. b. Grantee shall give City and Subscribers written notice of any change in a rate or charge at least one billing cycle prior to the effective date of the change. Bills must be clear, concise, and understandable, with itemization of all charges. 2. Non-Standard Installations. Grantee shall install and provide Cable Service to any Person requesting other than a Standard Installation provided that said Cable Service can meet FCC technical specifications and all payment and policy obligations are met. In such case, Grantee may charge for the incremental increase in material and labor costs incurred beyond the Standard Installation. 14 3. Sales Procedures. Grantee shall not exercise deceptive sales procedures when marketing any of its services within City. In its initial communication or contact with a non-Subscriber and in all general solicitation materials marketing the Grantee or its services as a whole, Grantee shall inform the non-Subscriber of all levels of service available, including the lowest priced and free service tiers. Grantee shall have the right to market door-to-door during reasonable hours consistent with local ordinances and regulation. 4. Subscriber Inquirv and Complaint Procedures. a. Grantee shall have a publicly listed toll-free telephone number which shall be operated so as to receive Subscriber complaints and requests on a twenty-four (24) hour-a-day, seven (7) days-a-week, 365 days a year basis. During normal business hours, trained representatives of Grantee shall be available to respond to Subscriber inquiries. b. Grantee shall maintain adequate numbers of telephone lines and personnel to respond in a timely manner to schedule service calls and answer Subscriber complaints or inquiries in a manner consistent with regulations adopted by the FCC and City where applicable and lawful. Under normal operating conditions, telephone answer time by a customer representative, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less than ninety (90) percent of the time under normal operating conditions, measured on a quarterly basis. Under normal operating conditions, the customer will receive a busy signal less than three (3) percent of the tirne. Grantee shall respond to written complaints with copy to City or its designee within thirty (30) days. c. Subject to Grantee's obligations pursuant to law regarding privacy of certain information, Grantee shall prepare and maintain written records of all complaints received from City and the resolution of such complaints, including the date of such resolution. Such written records shall be on file at the office of Grantee. Grantee shall provide City with a written summary of such complaints and their resolution upon request of City. As to Subscriber complaints, Grantee shall comply with FCC record-keeping regulations, and make the results of such record-keeping available to City upon request. d. Subscriber requests for repairs shall be performed within thirty-six (36) hours of the request unless conditions beyond the control of Grantee prevent such performance. Grantee may schedule appointments for Installations and other service call either at a specific time or, at a maximum, during a four hour time block during normal business hours. 15 Grantee may also schedule service calls outside normal business hours for the convenience of customers. Grantee shall use its best efforts to not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. If the installer or technician is late and will not meet the specified appointment time, he/she must use his/her best efforts to contact the customer and reschedule the appointment at the sole convenience of the customer. Service call appointments must be met in a manner consistent with FCC standards. 5. Subscriber Contracts. Grantee shall file with City any standard form Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall file with the City a document completely and concisely stating the length and terms of the Subscriber contract offered to customers. The length and terms of any Subscriber contract(s) shall be available for public inspection during normal business hours. 6. Refund Policv. In the event a Subscriber establishes or terminates service and receives less than a full month's service, Grantee shall prorate the monthly rate on the basis of the number of days in the period for which service was rendered to the number of days in the billing. 7. Late Fees. Fees for the late payment of bills shall not be assessed until after the service has been fully provided and, as of the due date of the bill notifying Subscriber of an unpaid balance, the bill remains unpaid. Late Fees may not exceed the actual costs to Grantee of late payment of bills and the servicing and collecting of such accounts. 8. Office PolicX. Grantee shall maintain a location in City or the Franchise territory encompassing any joint regulatory body of which City is a Member for receiving Subscriber inquiries and bill payments. The location must be staffed by a person capable of receiving inquiries and bill payments. In addition, Grantee shall maintain a local drop box for receiving Subscriber payments after hours. SECTION 6. ACCESS CHANNEL(S) PROVISIONS 1. Public. Educational and Government Access. a. City or its designee is hereby designated to operate, administer, promote, and manage access (public, education, and government programming) (hereinafter "PEG access") programming on the Cable System. b. Grantee shall dedicate 12 channel(s) for PEG access and community programming use in accordance with the Proposal. All residential 16 Subscribers who receive all or any part of the total services offered on the System shall be eligible to receive such channels at no additional charge. The channel(s) shall be activated upon the effective date of this Franchise and thereafter maintained. City may rename, reprogram, or otherwise change the use of these channels in its sole discretion, provided such use is non-commercial, lawful, and retains the general purpose of the provision of community programming. Nothing herein shall diminish the City's rights to secure additional channels pursuant to Minn. Stat. § 238.084, which is expressly incorporated herein by reference. City shall provide ninety (90) days prior written notice to Grantee of City's intent to activate access channels. c. Each public and government access channel(s) required by this Section shall retain the channel designation/number it had as of the commencement of this Franchise term. Grantee may not move or otherwise change the channel number or location of any public or government access or community program channel without the written approval of the City or its designee. Upon six (6) months notice to City, any other access channel may be moved by Grantee, but in no event more than once every two (2) years unless otherwise allowed by City, provided Grantee pays all reasonable costs or expenses arising out of the channel move including, but not limited to, equipment necessary to effect the change at the programmer's production or receiving facility (school frequency routing equipment, etc.), signage, letterhead, business cards, and reasonable marketing or other constituency notification costs. In any event, those access channels carried on the universal service tier pursuant to the MOU shall remain on the universal service tier. This paragraph shall not apply to Regional Channel 6. 2. Charges for Use. Channel time and playback of prerecorded programming on the PEG access and community program channel(s) must be provided without charge to City and the public. 3. Access Rules. City, or its designee, shall implement rules for use of any access channel(s). 4. Access Support. Grantee shall continue to be obligated pursuant to the MOU, and shall additionally provide $667,286.00 over the term of this Franchise for the acquisition of new equipment according to the schedule in Exhibit A attached. 5. Studio Relocation. In addition to the agreement between the City and Grantee regarding the North Suburbs Access Corporation relocation pursuant to the access transfer agreement, the following shall apply: If North Suburbs Access Corporation expends, with Grantee's express written consent which may not be unreasonably withheld, over $1,000.00 to remodel or renovate its leasehold in a 17 twelve (12) month period and Grantee thereafter requires North Suburbs Access Corporation to move studio locations, Grantee shall reimburse North Suburbs Access Corporation 100% of its expenditures if the request to move is within one (1) year of the expense of North Suburbs Access Corporation. Said reimbursement shall be decreased by 20% for each year the expense was incurred prior to the date North Suburbs Access Corporation is required to move. 6. Regional Channel 6. Grantee shall designate standard VHF Channel6 for uniform regional channel usage. 7. State and Federal Law compliance. Satisfaction of the requirements of this Section 6 satisfies any and all of Grantee's state and federal law requirements of Grantee with respect to PEG access. SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS 1. CapacitX. a. Grantee shall provide an Institutional Network with 54 channel capacity (16 upstream channels and 38 downstream channels) in the 5-450 MHz spectrum, all in accordance with the Proposal. All institutions designated on Exhibit B attached hereto and made a part hereof shall be connected to the Institutional Network along with any new City Hall which may be constructed by City or to which City may otherwise move its government offices or City Council meeting locations. Other public or educational institutions subsequently designated by City shall be connected to the Institutional Network if the designated institution is located less than five hundred (500) feet from the existing Institutional Network, or if such designated institution agrees to reimburse Grantee for Grantee's actual costs in excess of the five hundred (500) foot installation actual costs. b. All institutions designated on Exhibit B attached shall be allowed to make use of the full channel capacity for video uses at no charge. The institutions designated on Exhibit B attached may make use of three (3)-6 MHz channels downstream and three (3)-6 MHz channels upstream for non-video uses at no charge. c. Grantee shall construct and thereafter maintain fiber optics to the Institutional Network nodes which shall include two (2) fibers to transmit the fifty-four (54) channels required in subparagraph a. above, and four (4) additional fibers which are expressly for the use of the institutions listed in Exhibit B. 18 Charges to designated institutions for non-video use of the channels other than the six (6) non-video dedicated channels (three (3) upstream and three (3) downstream) on the Institutional Network required in subparagraph a. above shall be calculated based on Grantee's actual cost plus a 45 % margin or the "most favored comparable user rate", whichever is lower. Charges to the designated institutions for video or non-video use of the six (6) fibers provided to the Institutional Network nodes shall be calculated based only upon Grantee's incremental actual cost for providing the additional six (6) fibers. Use of the Institutional Network by a designated institution is limited to its own use(s) and no institution may sell Institutional Network capacity or usage to any third party, without the express written consent of Grantee. 2. Grantee's Use of CapacitX. Grantee may use available capacity on the fifty-four (54) channel Institutional Network required in Paragraph la. above for other uses including commercial uses, provided, however, that usage of seventy-five percent (75 of such capacity by designated institutions shall have priority over other uses subject to rules or policies adopted by Grantee and approved in advance by City. Further, should City determine that any portion of Grantee's use of the twenty-five percent (25 should be terminated to accomodate the use by a designated institution for video purposes, City may direct that Grantee terminate its use at the expiration of any third party use contract or three (3) years, whichever is sooner. 3. End-User Equipment. a. Designated institutions shalt be generally responsible for providing their own end-user equipment. However, Grantee shall provide at no charge twenty (20) new modulators for City and/or designated institutions use of the Institutional Network, all as approved by the City. b. With respect to non-video end-user equipment, upon request by a designated institution, Grantee must either lease the equipment requested to the requesting institution or make reasonable efforts to arrange for the lease of such equipment. Within 30 days of a written request, Grantee must notify the requesting institution in writing of its ability or inability to lease the requested equipment and the terms of such lease. The City, its designee, or the requesting institution may purchase or lease the equipment from any vendor. c. In addition, Grantee will provide standby power for the Institutional Network, provide fifteen (15) new pilot generators, re-tune ten (10) existing return pilot generators, and re-tune one hundred twenty-four 124 existing return amplifiers. 19 4. Service Standards. Grantee shall maintain those technical and performance standards as are detailed in Exhibit D attached. Grantee shall provide the City, or its designee, upon request with reports of the performance of the I-Net and Grantee's compliance with the technical and performance standards. SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS 1. Administration f Franchise. The City Administrator or other designee shall have continuing regulatory jurisdiction and supervision over the System and the Grantee's operation under the Franchise. The City, or its designee, may issue such reasonable rules and regulations concerning the construction, operation and maintenance of the System as are consistent with the provisions of the Franchise and law. 2. Delegated Authority. The City may appoint a citizen advisory body ar a Joint Powers Commission, or may delegate to any other body or Person authority to administer the Franchise and to monitor the performance of the Grantee pursuant to the Franchise. Grantee shall cooperate with any such -delegatee of City. 3. Franchise Fee. a. During the term of the Franchise, Grantee shall pay quarterly to City or its delegatee a Franchise Fee in an amount equal to five percent (5 of its quarterly Gross Revenues, or such other amounts as are subsequently permitted by federal statute. b. Any payments due under this provision shall be payable quarterly. The payment shall be made within thirty (30) days of the end of each of Grantee's fiscal quarters together with a report showing the basis for the computation. c. All amounts paid shall be subject to audit and recomputation by City and acceptance of any payment shall not be construed as an accord that the amount paid is in fact the correct amount. 4. Access to Records. The City shall have the right to inspect, upon reasonable notice and during normal business hours, or require Grantee to provide within a reasonable time copies of any records maintained by Grantee which relate to System operations including specifically Grantee's accounting and financial records. 20 5. Reports and Maps to be Filed with CitX. a. Grantee shall file with the City, at the time or payment of the Franchise Fee, a report of all Gross Revenues in form and substance as required by City. b. Grantee shall prepare and furnish to City, at the times and in the form prescribed, such other reasonable reports with respect to Grantee's operations pursuant to this Franchise as City may require. c. If required by City, Grantee shall furnish to and file with City Administrator the maps, plats, and permanent records of.the location and character of all facilities constructed, including underground facilities, and Grantee shall file with City updates of such maps, plats and permanent records annually if changes have been made in the System. 6. Periodic Evaluation. a. The City may require evaluation sessions at any time during the term of this Franchise, upon fifteen (15) days written notice to Grantee. b. Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System performance, programming offered, access channels, facilities and support, municipal uses of cable, subscriber rates, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics City deems relevant. c. As a result of a periodic review or evaluation session, upon notification from City, Grantee shall meet with city and undertake good faith efforts to reach agreement on changes and modifications to the terms and conditions of the Franchise which are both economically and technically feasible. SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS 1. Performance Bond. a. At the time the Franchise becomes effective and at all times thereafter, until the Grantee has liquidated all of its obligations with City, the Grantee shall furnish a bond to City in the amount of $500,000.00 in a form and with such sureties as reasonably acceptable to City. This bond will be conditioned upon the faithful performance by the Grantee of its Franchise obligations and upon the further condition that in the event the Grantee 21 shall fail to comply with any law, ordinance or regulation governing the Franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by City as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the Grantee, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond, and further guaranteeing payment by the Grantee of claims, liens and taxes due City which arise by reason of the construction, operation, or maintenance of the System. The rights reserved by City with respect to the bond are in addition to all other rights City may have under the Franchise or any other law. City may, from year to year, in its sole discretion, reduce the amount of the bond. b. The time for Grantee to correct any violation or liability, shall be extended by City if the necessary action to correct such violation or liability is, in the sole determination of City, of such a nature or character as to require more than thirty (30) days within which to perform, provided Grantee provides written notice that it requires more than thirty (30) days to correct such violations or liability, commences the corrective action within the thirty (30) days period and thereafter uses reasonable -diligence to correct the violation or liability. c. In the event this Franchise is revoked by reason of default of Grantee, City shall be entitled to collect from the performance bond that amount which is attributable to any damages sustained by City as a result of said default or revocation. d. Grantee shall be entitled to the return of the performance bond, or portion thereof, as remains sixty (60) days after the expiration of the term of the Franchise or revocation for default thereof, provided City has not notified Grantee of any actual or potential damages incurred as a result of Grantee's operations pursuant to the Franchise or as a result of said default. e. The rights reserved to City with respect to the performance bond 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 the performance bond shall affect any other right City may have. 2. Letter of Credit. a. At the time of acceptance of this Franchise, Grantee shall deliver to City an irrevocable and unconditional Letter of Credit, in form and substance acceptable to City, from a National ar State bank approved by City, in the amount of $25,000.00. 22 b. The Letter of Credit shall provide that funds will be paid to City, upon written demand of City, and in an amount solely determined by City in payment for penalties charged pursuant to this Section, in payment for any monies owed by Grantee to City or any person pursuant to its obligations under this Franchise, or in payment for any damage incurred by City or any person as a result of any acts or omissions by Grantee pursuant to this Franchise. c. In addition to recovery of any monies owed by Grantee to City or any person or damages to City or any person as a result of any acts or omissions by Grantee pursuant to the Franchise, City in its sole discretion may charge to and collect from the Letter of Credit the following penalties: i. For failure to timely complete System upgrades as provided in this Franchise unless City approves the delay, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. ii. For failure to provide data, documents, reports or information or to cooperate with City during an application process or system review or as otherwise provided herein, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. iii. Fifteen (15) days following notice from City of a failure of Grantee to comply with construction, operation or maintenance standards, the penalry shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. iv. For failure to provide the services Grantee has proposed, including, but not limited to, the implementation and the utilization of the access channels and the maintenance and/or replacement of the equipment and other facilities, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. v. For Grantee's breach of any written contract or agreement with or to the City or its designee, the penalty shall be $500.00 per day for each day, or part thereof, such breach occurs or continues. vi. For failure to comply with any of the provisions of this Franchise, or other City ordinance for which a penalty is not otherwise specifically provided pursuant to this paragraph c, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. 23 d. Each violation of any provision of this Franchise shall be considered a separate violation for which a separate penalty can be imposed. e. Whenever City finds that Grantee has violated one or more terms, conditions or provisions of this Franchise, or for any other violation contemplated in Subparagraph c. above, a written notice shall be given to Grantee informing it of such violation. At any time after thirty (30) days (or such longer reasonable time which, in the sole determination of City, is necessary to cure the alleged violation) following local receipt of notice, provided Grantee remains in violation of one or more terms, conditions or provisions of this Franchise, in the sole opinion of City, City may draw from the Letter of Credit all penalties and other monies due City from the date of the local receipt of notice. f. Whenever the Letter of Credit is drawn upon, Grantee may, within seven (7) days of such draw, notify City in writing that there is a dispute as to whether a violation or failure has in fact occurred. Such written notice by Grantee to City shall specify with particularity the matters disputed by Grantee. All penalties shall continue to accrue and City may continue to draw from the Letter of Credit during any appeal pursuant to this subparagraph f. i. City shall hear Grantee's dispute within sixty (60) days and render a final decision within sixty (60) days thereafter. ii. Upon the determination of City that no violation has taken place, City shall refund to Grantee, without interest, all monies drawn from the Letter of Credit by reason of the alleged violation. g. If said Letter of Credit or any subsequent Letter of Credit delivered pursuant thereto expires prior to thirty (30) months after the expiration of the term of this Franchise, it shall be renewed or replaced during the term of this Franchise to provide that it will not expire earlier than thirty (30) months after the expiration of this Franchise. The renewed or replaced Letter of Credit shall be of the same form and with a bank authorized herein and for the full amount stated in Paragzaph A of this Section. h. If City draws upon the Letter of Credit or any subsequent Letter of Credit delivered pursuant hereto, in whole or in part, Grantee shall replace or replenish to its full amount the same within ten (10) days and shall deliver to City a like replacement Letter of Credit or certification of replenishment for the full amount stated in Section 9.2 (a) as a substitution of the previous Letter of Credit. This shall be a continuing obligation for any draws upon the Letter of Credit. 24 i. If any Letter of Credit is not so replaced or replenished, City may draw on said Letter of Credit for the whole amount thereof and use the proceeds as City determines in its sole discretion. The failure to replace or replenish any Letter of Credit may also, at the option of the City, be deemed a default by Grantee under this Franchise. The drawing on the Letter of Credit by City, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. j. The collection by City of any damages, monies or penalties from the Letter of Credit shall not affect any other right or remedy available to City, nor shall any act, or failure to act, by City pursuant to the Letter of Credit, be deemed a waiver of any right of City pursuant to this Franchise or otherwise. 3. Indemnification of CitX. a. City, its officers, boards, committees, commissions, elected officials, employees and agents shall not be liable for any loss or damage to any real or personal property of any Person, or for any injury to or death of any Person, arising out of or in connection with Grantee's construction, operation, maintenance, repair or removal of the System or as to any other action of Grantee with respect to this Franchise. b. Grantee shall indemnify, defend, and hold harmless City, its officers, boards, committees, commissions, elected officials, employees and agents, from and against all liability, damages, and penalties which they may legally be required to pay as a result of the City's exercise, administration, or enforcement of the Franchise. c. Nothing in this Franchise relieves a Person, except City, from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while performing work connected with grading, regarding, or changing the line of a Right-of-Way or public place or with the construction or reconstruction of a sewer or water system. 4. Insurance. a. As a part of the indemnification provided in Section 8.3, but without limiting the foregoing, Grantee shall file with City at the time of its acceptance of this Franchise, and at all times thereafter maintain in full force and effect at its sole expense, a comprehensive general liability insurance policy, including broadcaster's/cablecaster's liability and contractual liability coverage, in protection of the Grantee, and the City, its officers, elected officials, boards, commissions, agents and employees 25 for any and all damages and penalties which may arise as a result of this Franchise. The policy or policies shall name the City as an additional insured, and in their capacity as such, City officers, elected officials, boards, commissions, agents and employees. b. The policies of insurance shall be in the sum of not less than $1,000,000.00 for personal injury or death of any one Person, and $2,000,000.00 for personal injury or death of two or more Persons in any one occurrence, $500,000.00 for property damage to any one person and $2,000,000.00 for property damage resulting from any one act or occurrence. c. The policy or policies of insurance shall be maintained by Grantee in full force and effect during the entire term of the Franchise. Each policy of insurance shall contain a statement on its face that the insurer will not cancel the poiicy or fail to renew the policy, whether for nonpayment of premium, or otherwise, and whether at the request of Grantee or for other reasons, except after sixty (60) days advance written notice have been provided to City. SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE 1. Cit, 'y s Right to Revoke. a. In addition to all other rights which City has pursuant to law or equity, City reserves the right to commence proceedings to revoke, terminate or cancel this Franchise, and all rights and privileges pertaining thereto, if it is determined by City that: i. Grantee has violated material provisions(s) of this Franchise; or ii. Grantee has attempted to evade any of the provisions of the Franchise; or iii. Grantee has practiced fraud or deceit upon City. City may revoke this Franchise without the hearing required by 9.2(b) herein if Grantee is adjudged a bankrupt. 2. Procedures for Revocation. a. City shall provide Grantee with written notice of a cause for revocation and the intent to revoke and shall allow Grantee thirty (30) days subsequent to receipt of the notice in which to correct the violation or to provide adequate 26 assurance of performance in compliance with the Franchise. In the notice required herein, City shall provide Grantee with the basis of the revocation. b. Grantee shall be provided the right to a public hearing affording due process before the City Council prior to the effective date of revocation, which public hearing shall follow the thirty (30) day notice provided in subparagraph (a) above. City shall provide Grantee with written notice of its decision together with written findings of fact supplementing said decision. c. Only after the public hearing and upon written notice of the determination by City to revoke the Franchise may Grantee appeal said decision with an appropriate state or federal court or agency. d. During the appeal period, the Franchise shall remain in full force and effect unless the term thereof sooner expires or unless continuation of the Franchise would endanger the health, safety and welfare of any person or the public. 3. Abandonment of Service. Grantee may not abandon the System or any portion thereof without having first given three (3) months written notice to City. Grantee may not abandon the System or any portion thereof without compensating City for damages resulting from the abandonment, including all costs incident to removal of the System. 4. Removal After Abandonment. Termination or Forfeiture. a. In the event of termination or forfeiture of the Franchise or abandonment of the System, City shall have the right to require Grantee to remove all or any portion of the System from all Rights-of-Way and public property within City. b. If Grantee has failed to commence 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 twelve (12) months after written notice of City's demand for removal is given, City shall have the right to apply funds secured by the Letter of Credit and Performance Bond toward removal and/or 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. 27 5. Sale or Transr'er of Franchise. a. No sale or transfer of the Franchise, or sale, transfer, or fundamental corporate change of or in Grantee, including, but not limited to, a fundamental corporate change in Grantee's parent corporation or any entity having a controlling interest in Grantee, the sale af a controlling interest in the Grantee's assets, a merger including the merger of a subsidiary and parent entity, consolidation, or the creation of a subsidiary or affiliate entity, shall take place until a written request has been filed with City requesting approval of the sale, transfer, or corporate change and such approval has been granted or deemed granted, provided, however, that said approval shall not be required where Grantee grants a security interest in its Franchise and/or assets to secure an indebtedness. b. Any sale, transfer, exchange or assignment of stock in Grantee, or Grantee's parent corporation or any other entity having a controlling interest in Grantee, so as to create a new controlling interest therein, shall be subject to the requirements of this Section 10.5. The term "controlling interest" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. In any event, as used herein, a new "controlling interest" shall be deemed to be created upon the acquisition through any transaction or group of transactions of a legal or beneficial interest of fifteen percent (15%) or more by one Person. Acquistion by one Person of an interest of five percent (5 or more in a single transaction shall require notice to City. c. The Grantee shall file, in addition to all documents, forms and information required to be filed by applicable law, the following: 1. All contracts, agreements or other documents that constitute the proposed transaction and all exhibits, attachments, or other documents referred to therein which are necessary in order to understand the terms thereof. 2. A list detailing all documents filed with any state or federal agency related to the transaction including, but not limited to, the MPUC, the FCC, the FTC, the FEC, the SEC or MnDOT. Upon request, Grantee shall provide City with a complete copy of any such document; and 3. Any other documents or information related to the transaction as may be specifically requested by the City. d. City shall have such time as is permitted by federal law in which to review a transfer request. 28 e. The Grantee shall reimburse City for all the legal, administrative, and consulting costs and fees associated with the City's review of any request to transfer. Nothing herein shall prevent Grantee from negotiating partial or complete payment of such costs and fees by the transferee. Grantee may not itemize any such reimbursement on Subscriber bills, but may recover such expenses in its subscriber rates. f. In no event shall a sale, transfer, corporate change, or assignment of ownership or control pursuant to subparagraph (a) or (b) of this Section be approved without the transferee becoming a signatory to this Franchise and assuming all rights and obligations thereunder, and assuming all other rights and obligations of the transferor to the City including, but not limited to, any adequate guarantees or other security instruments provided by the transferor. g. In the event of any proposed sale, transfer, corporate change, or assignment pursuant to subparagraph (a) or (b) of this Section, City shall have the right to purchase the System for the value of the consideration proposed in such transaction. City's right to purchase shall arise upon City's receipt of notice of the material terms of an offer or proposal for sale, transfer, corporate change, or assignment, which Grantee has accepted. Notice of such offer or proposal must be conveyed to City in writing and separate from any general announcement of the transaction. h. City shall be deemed to have waived its right to purchase the System pursuant to this Section only in the following circumstances: i. If City does not indicate to Grantee in writing, within sixty (60) days of receipt of written notice of a proposed sale, transfer, corporate change, or assignment as contemplated in Section 10.5 (g) above, its intention to exercise its right of purchase; or ii. It approves the assignment or sale of the Franchise as provided within this Section. i. No Franchise may be transferred if City determines Grantee is in noncompliance of the Franchise unless an acceptable compliance program has been approved by City. The approval of any transfer of ownership pursuant to this Section shall not be deemed to waive any rights of City to subsequently enforce noncompliance issues relating to this Franchise even if such issues predated the approval, whether known or unknown to City. 29 SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS 1. Discriminatorv Practices Prohibited. Grantee shall not deny service, deny access, or otherwise discriminate against Subscribers or general citizens on the basis of race, color, religion, national origin, sex, age, status as to public assistance, affectional preference, or disability. Grantee shall comply at all times with all other applicable federal, state, and city laws, and all executive and administrative orders relating to nondiscrimination. 2. Subscriber Privacv. a. No signals including signals of a Class IV Channel may be transmitted from a Subscriber terminal for purposes of monitoring individual viewing patterns or practices without the express written permission of the Subscriber. Such written permission shall be for a limited period of time not to exceed one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such authorization. The authorization shall be revocable at any time by the Subscriber withaut penalty of any kind whatsoever. Such permission shall be required for each type or classification of Class IV Channel activity planned for the purpose of monitoring individual viewing patterns or practices. b. No lists of the names and addresses of Subscribers or any lists that identify the viewing habits of Subscribers shall be sold or otherwise made available to any party other than to Grantee or its agents for Grantee's service business use or to City for the purpose of Franchise administration, and also to the Subscriber subject of that information, unless Grantee has received specific written authorization from the Subscriber to make such data available. Such written permission shall be for a limited period of time not to exceed one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such authorization. The authorization shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. c. Written permission from the Subscriber shall not be required for the conducting of System wide or individually addressed electronic sweeps for the purpose of verifying System integrity or monitoring for the purpose of billing. Confidentiality of such information shall be subject to the provision set forth in subparagraph (b) of this Section. 30 SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS 1. Unauthorized Connections or Modifications Prohibited. It shall be unlawful for any firm, Person, group, company, corporation, or governmental body or agency, without the express consent of the Grantee, to make or possess, or assist anybody in making or possessing, any unauthorized connection, extension, or division, whether physically, acoustically, inductively, electronically or otherwise, with or to any segment of the System or receive services of the System without Grantee's authorization. 2. Removal or Destruction Prohibited. It shall be unlawful for any firm, Person, group, company, or corporation to willfully interfere, tamper, remove, obstruct, or damage, or assist thereof, any part or segment of the System for any purpose whatsoever, except for any rights City may have pursuant to this Franchise or its police powers. 3. Pealtv. Any firm, Person, group, company, or corporation found guilty of violating this section may be fined not less than Twenty Dollars ($20.00) and the costs of the action nor more than Five Hundred Dollars ($500.00) and the costs of the action for each and every subsequent offense. Each continuing day of the violation shall be considered a separate occurrence. SECTION 13. MISCELLANEOUS PROVISIONS 1. Franchise Renewal. Any renewal of this Franchise shall be performed in accordance with applicable federal, state and local laws and regulations. The term of any renewed Franchise shall be limited to a period not to exceed fifteen (15) years. 2. Work Performed bY Others. All applicable obligations of this Franchise shall apply to any subcontractor or others performing any work or services pursuant to the provisions of this Franchise, however, in no event shall any such subcontractor or other performing work obtain any rights to maintain and operate a System or provide Cable Service. Grantee shall provide notice to City of the name(s) and address(es) of any entity, other than Grantee, which performs substantial services pursuant to this Franchise. 3. Amendment of Franchise Ordinance. Grantee and City may agree, from time to time, to amend this Franchise. Such written amendments may be made subsequent to a review session pursuant to Section 7.5 or at any other time if City and Grantee agree that such an amendment will be in the public interest or if such an 31 amendment is required due to changes in federal, state or local laws. Provided, however, nothing herein shall restrict City's exercise of its police powers or Ciry's authority to unilaterally amend Franchise provisions to the extent permitted by law. 4. Co=liance with Federal. State and Local Laws. a. If any federal or state law or regulation shall require or permit City or Grantee to perform any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, either party shall notify the other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state laws and rules regarding cable communications not later than one year after they become effective, unless otherwise stated, and to conform to federal laws and regulations regarding cable as they become effective. b. 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, conclition or provision to Persons or circumstances other than those as to whom it shall be held invalid or unenforceable 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 complied with provided the loss of the invalid or unenforceable clause does nor substantially alter the agreement between the parties. In the event such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the provision which had been held invalid or modified is no longer in conflict with the law, rules and regulations then in effect, said provision shall thereupon return to full force and effect and shall thereafter be binding on Grantee and City. 5. Nonenforcement by Citv. Grantee shall not be relieved of its obligations to comply with any of the provisions of this Franchise by reason of any failure or delay of City to enforce prompt compliance. City may only waive its rights hereunder by expressly so stating in writing. Any such written waiver by City of a breach or violation of any provision of this Franchise shall not operate as or be construed to be a waiver of any subsequent breach or violation. 6. Rights Cumulative. All rights and remedies given to City by this Franchise or retained by City herein shall be in addition to and cumulative with any and all other rights and remedies, 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 32 or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. 7. Grantee Acknowledgment of Validity of Franchise. Grantee acknowledges that it has had an opportunity to review the terms and conditions of this Franchise and that under current law Grantee believes that said terms and conditions are not unreasonable or arbitrary, and that Grantee believes City has the power to make the terms and conditions contained in this Franchise. SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS 1. Publication: Effective Date. This Franchise shall be published in accordance with applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of acceptance by Grantee in accordance with the provisions of Section 14.2. 2. Acceptance. a. Grantee shall accept this Franchise within sixty (60) of its enactment by the City Council, unless the time for acceptance is extended by City. Such acceptance by the Grantee shall be deemed the grant of this Franchise for all purposes provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied with and all applicable timelines have run for the adoption of a City ordinance. In the event acceptance does not take place, or should all ordinance adoption procedures and timelines not be completed, this Franchise and any and all rights granted hereunder to Grantee shall be null and void. b. Upon acceptance of this Franchise, Grantee and City shall be bound by all the terms and conditions contained herein. c. Grantee shall accept this Franchise in the foliowing manner: i. This Franchise will be properly executed and acknowledged by Grantee and delivered to City. ii. With its acceptance, Grantee shall also deliver any grant payments, performance bond and insurance certificates required herein that have not previously been delivered. 33 Passed and adopted this day of , 1998. ATTEST: CITY OF ARDEN HILLS By: By: Its: Its: ACCEPTED: This Franchise is accepted and we agree to be bound by its terms and conditions. Dated: By: Its : C:\C ABLE\NSCCCC\ARDENHIL. FRN 34 EXHIBIT A ShMeredith . Kevin C. Griffin ~ TVM.Cable President & General Manager . 934 Woodhill Drive (Fax) 612/483-9184 Roseville, MN 55113 Customer Service: 612/483-9999 Administration: 612/483-3233 August 4, 1997 Ms. Cor Wilson, Executive Director North Suburban Cable Communications Commission 950 Woodhill Drive Roseville, Minnesota 55113 Re: North Suburban Cable Communications Franchise Renewal Dear Cor: Attached please find an updated and revised Renewal Proposal per your';request. We have made an attempt to identify everything that has been ageed to between us. Should there be any confusion please refer to my memorandum of 7uly 31, 1997 to Mr. Creighton. As we have discussed, any agreements or offers regardin; clarifications or modifications of our May 13, 1997 proposal have been made in the spirit and context of an entire "package" of understandings. Accordingly, changes in any one component could result in a need to change other components. Please feel free to contact me with any questions or for further clarification. Sinc4C.Grifffifin lK in ° cc: Thomas D. Crei;hton Randall Coieman Kathi Donnelly-Cohen John Gibbs Trudi McCollum Foushee EXHIBIT A - Continued Renewll Proposal - Investment for the Future Meredith Cable proposes to meet the needs of the North Suburbs with this investment plan for the future which will thoroughly revitalize and modernize the system. This plan includes a franchise commitment to develop the system to 750 MHZ capacity. This plan will result in higher quality signals, expanded channel capacity and the opportunity to launch new programming services. In addition, Meredith Cable proposes to upgrade the existing Institutional Network and incorporate fiber into the system to faciiitate future expansion of the Institutionat Network. Meredith Cable also proposes a renewal of our commitment to support of local access programming and the establishment of capability to enable the development of future high speed data transmission services and other future services. This proposal represents an agjressive effort to respond to identified community needs and interests, taking into account the cost of ineeting those needs and interests over the requested fifteen (15) year renewal time frame. The specifics of the proposal are set forth below: A SUBSCRIBER SYSTEM UPGRADE DESIGN AND CONSTRUCTION Meredith Cable will commit in a renewal franchise that the subscriber system servinj the North Suburbs will be enhanced from the current 450 MHZ, 65 channeI system to a state-of-the-art 750 MHZ system ofFering dramatically more channel capacity, higher sijnal quality, more reliability and more features as set forth below: • A- 1. The subscriber network will be 750 MHZ capacity. Meredith plans to initially program 81 downstream channels upon activation - with phased activation launches as nodes are completed. This leaves an additional 200 MHZ capacity available for future activation of additionaI video channels, digital services, and other serviees as future marketplace needs dictate. In addition, the system will be desi;ned with the capability to transmit return signals upstream at 5- 40 iNflIZ in the future as commercial need dictates and with mutually acceptable franchise lan~uage that establishes a mechanism for discussions regarding activation of the return. • A- 2. Hybrid fiber-coaxial architecture will be deployed. • A- 3. Initially, the system will be developed with approximately Forty (40) pockets which . are called "nodes", each connected by optical fiber and serving approximately Two Thousand (2000) homes with a minimum 16 fiber count. The fiber optic nodes will be desijned to be capable of migrating to five hundred (500) home nodes with a minimum 4 fiber count as marketplace need dictates. • A- 4. All power supplies will be equipped with standby power capability which, at a minimum, will be initially activated at the node locations. • A- 5. In order to better assure reliability and system maintenance, the system will EXHIBIT A - Continued incorporate status monitoring at nodes and strategic locations. . • A- 6. Non-interruptible power-passing compatible taps are planned for ease of maintenance and less disruption during system maintenance. • A- 7. Adequate fiber count, a minimum of 16 per initial 2,000 home node, will be included in order to facilitate future expansion of needs including future expansion of needs in business corridors as commercial need dictates. • A- 8. The subscriber RF system will accommodate and be capable of providing return signals in 5- 40 MHZ bandwidth in the future. Such return capacity will be activated as commercial and marketplace need dictates and with mutually acceptable franchise languaae that establishes a mechanism for discussions regarding the activation of the return. • A- 9. All existin; head end equipment will be replaced with state-of-the-art standard . frequency head end equipment. • . A- 10. Basic Service channel mappinor will no longer be utilized by the system, thereby permittin~ all local VHF off-air broadcast signals to be located "on-channel" for all customers and with no impact on the PEG channel location on Universal Service. • A- 11. Standby power will continue to be in place for the head end. • A- 12. The system will have the capability to receive and pass through all local broadcast sijnals in diaital farmat as required by applicable federal rules and recrulations and in compliance with applicable FCC mandated time lines. • A- 13. The system will permit all channels available to Meredith Cable in stereo to be passed through in stereo. • A- 14. Meredith Cable will commence application for licenses and permits related to construction within 90 days after the commencement of the renewal period. • A- 15. Meredith Cable will commence desijn, walkout, etc. related to construction within 90 days after commencement of the renewal period. • A- 16. Meredith Cable proposes to enter into a franchise timetable to complete the , project by November 30, 2000 and will aggressively work to substantially complete construction by November 30, 1999. Meredith Cable will carefully map and report any underground pIant that may be abandoned. Stand aione abandoned aerial cable will be removed. 2 EXHIBIT A - Continued • A- 17. Meredith Cable proposes that interconnection between commonly owned, adjacent franchised systems in the Twin Cities marketplace can be accommodated by making available one (1) 6 NIHZ channel for forward video purposes, one (1) 6 MHZ channel for return video purposes, one (1) 6 MHZ channei for forward data and /or other purposes, and one (1) 6 MHZ channel for return data and/or other purposes. Actual interconnection with other franchise areas will be subject to technical capability of those systems and those franchise areas entering into similar renewal agreements containing similar provisions. • A- 18. 1Vleredith Cable plans to have a 750 MHZ carrier inserted at a level l Odb below the video carriers that will be measured as a normal procedure during service calls. The drop cable and passives will be inspected during normal installations to assure that 750 NIHZ can be passed. Should a drop or associated passive equipment not pass the full 750 MHZ, the address will be noted and at the time the address upgrades service that requires signal above 550 MHZ, the drop and/or associated equipment will be changed out. B. INSTITUTIONAL NETWORK Meredith Cable proposes to meet the needs of institutions and users by up~radin~ the existin~ Institutional Network, including fiber capacity in the system to facilitate future Institutional Network enhancements, and with mutually acceptable franchise languaje re]ating to technical and perFormance standards for the Institutional Network. This plan will offer flexibility and alternatives to local governments, public school districts, private schools, higher educational institutions, libraries and the sociai service community for the delivery and exchange of video and telecommunications services. Specifically, Meredith Cable proposes to make the following franchise commitments: • B- 1. Frequency spectrum (including upstream and downstream); 5 - 450 MHZ. • B- 2. Channel capacity of 54 channels (16 upstream and 38 downstream). • B- 3. 15 additional pilot generators. • B -4. Re-tuninc, of 10 existino, pilot aenerators. • B- 5. Re-tuning of 124 existing amplifiers. a B- 6. Provision of 20 additional modulators or de-modulators. • B- 7. Standby power with full battecy placement. • B- 8. Four (4) count shadow fiber placed along that part of the subscriber network that parallels the Institutional Network. ~ ~ EXHIBIT A - Continued ~ B- 9. Meredith Cable will make the I-Net available to the designated institutions for video uses at no charge. • B- 10. Meredith Cable will make three (3) 6 MHz channels available downstream and three (6) MHz channels available upstream, for non-video uses at no charge. • B- 11. Meredith Cable will charge designated institutions for all non-video uses beyond B- 10. mentioned above at a rate calculated based on the Company's actual cost plus a 45% margin or "most favored comparable user" rate, whichever is lower. ~ B- 12. Nothing contained herein shall prevent Meredith Cable from using available capacity for other uses except that designated institutions shall have priority over other uses subject to rules or policies adopted by Meredith Cable after consultation with the Commission. • B- 13. Use of the I-Net by the Cable Corrunission, cities or delegated institutions will be limited to their own uses and no institution may sell any service to any third party. • B- 14. Meredith Cable will either allow designated institutions to purchase their own equipment or will lease end-user terminal equipment to requesting institutions. • B- 15. Meredith Cable will provide and maintain I-Net equipment for the Commission, member cities and designated institutions on a cost recovery basis. C. PROGRAMMING Upon completion and activation by territory, Meredith will pro;ram a minimum of 81 analoj video channels. While definitive programming agreements have not been entered into and, as such, specific packaging, tiering and pricinc, decisions cannot be made at this time, it is anticipated that prices will be adjusted as authorized to reflect the additional pro~rammin~ as well as project and programming costs. As examples, we preliminarily anticipate the followina new programmin; choices or similar services will be available: • C- 1. Basic Service (or equivalent) - Initially, Meredith Cable anticipates a continuation of current Basic Service offerinc, of 28 channels without a realianment of channels within Universal Service. • C- 2. Preferred Tier Service (or equivalent) - Meredith Cable anticipates the addition of 4 or 5 channels to this tier that currently consists of 29 channels. There will be a correspondina rate adjustment. Preliminarily, and as examples, we anticipate the Iikely addition of the following exciting new offerings or others as we may deem more responsive to subscriber or marketplace needs and interests.: 4 EXHIBIT A - Continued • The Golf Chlnnel- The Golf Channel is the premier network devoted to the sport of golf providing more live golf coverage than all other networks combined. Tournaments include coverage from the PGA Tour, Senior PGA Tour, NIKE Tour, LPGA, Australian and PGA European Tour. Original live prooramming on The Golf Channel includes a weekly live call-in show, Golf Talk Live, and a nightly golf news show, Golf Central. The service also provides instructional programs such as The Golf Channel Academy. • The Cartoon Network - Featuring the world's largest cartoon library, the Cartoon Network features all-animated cartoon programming at any time of the day or night. For cartoon lovers of all ages, this network offers 8,500 animated programs from the Hanna-Barbara libraries including The Jetsons, The Flintstones and many more. • Classic Sports Network - The first 24-hour, all sports television hall of fame, featurinc, the world's largest library of rare and exclusive programming from professional, amateur, college sports and the Olympic Games. • TV Food Channel - Helps cable television viewers learn new recipes and cooking techniques, `spice' up family meals, learn the latest in healthier cuisine and explore fine restaurants nationwide. Hosts include world-class chefs, restaurateurs, mothers who work outside the home and celebrities. • Sneak Prevue - Sneak Prevue is the channel cable customers turn to 24 hours a day, for the most up-to-date information on proaramming available for order on a Pay-Per-View basis.. The service includes video clips of Pay-Per-View movies and events along with complete ordering information. • C- 3. New Product Tier Service - Meredith Cable anticipates the addition of 4 or 5 channels to a new, separately priced tier of service. Preliminarily, and as examples, we anticipate the likely addition of the following excitin- new offerino's or others as we may deem more responsive to subscriber or marketplace needs and interests.: • Independent Film Channel - The first network dedicated to independent film, showcasino, feature-lenath premieres, domestic and international films, documentaries, shorts, animation, new works, and masters. All movies are shown un-cut and without commercials, 24 hours a day. • FX Movies - Twenty four hours per day, un-cut and commercial free, FX Movies brin~s the vast Fox film library to cable television. • TV Laud - America's favorite classic television shows are brought back to 5 EXHIBIT A - Continued television. A companion station to Nick at Night, TV Land expands into all areas of classic television, comedies, dramas, variety shows, and even c(assic commercials. ~ Turner Classic Movies - The world's greatest collection of classic movies 24 hours a day, with no commercial interruptions. • CNN SI - The 24 hour sports news network from CNN and Sports Illustrated. Seven days a week CNN SI is a 24 hour network offering coverage of sports news unlike any other service. CNN SI utilizes the news gathering resources of CNN and in-depth reporting expertise of Sports Illustrated and provides sports viewers the most complete on-demand coverage available anywhere. • C- 4. Premium Services - Meredith Cable will ad several new optional premium service selections. Preliminarily, and as examples, we anticipate the likely addition of the following new premium offerin~s or others as we may deem more responsive to subscriber or marketplace needs and interests: • HBO 3- With Multichannel; HBO featuring HBO 2 and HBO 3, you always have three HBO programs to choose from. A Hollywood hit, ~maybe an HBO Original that everyone's talking about or something light like HBO Comedy Hour. The choice..and convenience...is yours! • HBO Family - HBO Family is a new HBO channel designed especially for a . family to watch together. With HBO Family's daily programming blocks, HBO Kids Block, the HBO Family Feature Black and Grown Ups Block, you always l:now just what kind of pro~rams are on any time. Your family will love our family! • Showtime 3- With Multichannel Showtime featurinlg Showtime 2 and Showtime 3 you'll see the biggest Hollywood hits, excitinc, Showtime Ori-inal Pictures, featurinc., the hottest stars and stories - sexy thrillers, sci-fi, National Lampoon comedy and high profile dramas. Multichannel convenience means you'll always find the program to match your mood! • C- 5. Pav-Per-View Services - Meredith Cable will offer more optional pay-per-view service selections. Preliminarily, and as examples, we anticipate the likely addition of the followinc, three new pay-per-view services or others as we may deem more responsive to subscriber marketplace needs and interests: ~ Viewer's Choice 3- featurinc, "movie-of-the-day" schedules allowing customers to see the biest hits as soon as they become available. 6 EXHIBIT A - Continued • Viewei•'s Choice 4- similar to Viewer's Choice 3 but featuring yet another movie option. • Viewer's Choice 5- similar to above featurin~ yet another movie option. • C- 6. Interactive Services - Meredith Cable's plan contempiates the capability of offering interactive services upon completion of the project and a reasonable expectation of consumer acceptance and financial viability. While various services are cunently developing, Meredith Cable is considering, among other services, a digital music service and interactive program ;uide. No decisions have been made regarding particular services, pricing or launch dates. • C- 7. Digital Services - Meredith Cable anticipates that additional premium service options, pay-per-view offerings and other new services includinor future di~ital secvices will be offered over time utilizin~ the appropriate bandwidth. A. HIGFi SPEED DATA TRANSMISSION In addition to traditional video services, the cable system will position Meredith Cable to offer new and yet-to-be-developed non-video services. • D- 1. The subscriber network will have adequate capability to enable the provision of high speed data service such as Internet access as marketplace need dictates. • D- 2. Meredith Cable's system will be able to address opportunities to meet the non- video interests of the business community by includin~ fiber capacity throu~h business _ corridors identified durin; the construction walkout in order to explore high speed data services demand by business users. G E COMMITMENT TO ACCESS PROGRAMMIN Meredith Cable proposes to meet and exceed the a;reements regardinc, access support which were entered into with the North Suburban Cable Communications Commission in the November 3, 1994 Memorandum of Understandinor. Specifically Meredith Cable proposes the following support for local access programming: • E- 1. Meredith Cable agrees to maintain the number of access channels (12) as cunently exist and accept the concept of havin; the current channel loan agreements extended for the fifteen (15) year renewal term and that the Commission wil[ retain control over the entire 6 Vg-IZ spectrum that equals one channel.. • E- 2. Meredith Cable agrees that the Commission can, on its own, chancre the name of required PEG channels, provided that Meredith is indemnified from any claims as a result 7 EXHIBIT A - Continued of suck action by the Commission. • E- 3, Meredith Cable proposes that the PEG support components of the Memorandum of Understanding remain intact. Rather than the PEG support fee set forth in the May 13, 1997 originat proposal, Meredith proposes a PEG fee based on the following: a new commitment to provide the Commission a total of $667,286 for the franchise term for acquisition of new equipment as follows and to be assessed as part of the PEG Fee; the $50,000 Equipment Replacement Grant, per the MOU; the appropriate amount for the Operating Grant, per the MOU; the appropriate amount for Universal Service, per the MOU; and the appropriate amount for the Scholarship Grant (which may be used for other purposes at the Commission's discretion), per the MOU: New Equipment Acquisition Grants Year Amount 1 $ 40,000 2 $ 40,600 3 $ 41,209 4 $41, 827 5 $ 42,455 . 6 $ 43, 091 7 $ 43,7;8 8 $ 44, 3 94 9 $ 45,060 10 S45,736 11 $ 46,422 12 $ 47,118 13 $ 47,825 14 $ 48,542 15 $ 49,270 • E- 4. Should Meredith Cable request the relocation of the CTV studio, Meredith agrees that the current agreements governing CTV relocation will remain intact. Meredith does not waive any ri~hts it may have with respect to the ability to recover any such costs should a move occur. 8 EXHIBIT B North Suburban Area Institutional Connections City of Arden Hills Inst. Name Street Address City Phone t-Net Sub Afden Hills City Hall 4364 W. Round Lk. Rd. (Temp.) Arden Hills 636-5676 X X Arden Hills Public Works 1460 W. Hwy. 96 Arden Hills 636-5676 YX Util.- Booster 1230Red Fox Road Arden Hills Y Util.- Lift #1 3196 North Cleveland Arden Hills Y Utii.- Lift #10 3804 North Cleveland Arden Hills Y Util.- Lift #11 1901 Highway 96 Arden Hills Y Util.- Lift #12 1965 Thom Drive Arden Hills Y Util.- Lift #13 1123 Karth Lake Drive Arden Hills Y Util.- Lift #14 Hwy 96, (MN Nat. Guard) Arden Hills Y Util.- Lift #2 1850 Co. Rd. E2 Arden Hills Y Util.- Lift #3 1578 Lake Johanna Blvd. Arden Hills Y Util.- Lift #4 3484 Ridgewood Road Arden Hills Y Util.- Lift #5 3495 Lake Johanna Blvd. Arden Hills Y Util.- Lift #6 3328 Lake Johanna Blvd. Arden Hills Y Util.- Lift #7 3230 Lake Johanna Blvd. Arden Hills Y Util.- Lift #8 1335 Ingerson Road Arden Hills Y Util.- Lift #9 3168 Ridgewood Road Arden Hills Y Util.- Roseville Station Y City of Falcon Heights Inst. Name Street Address City Phone I-Net Sub Falcon Heights City Hall 2077 W. Larpenteur Ave. Falcon Heights 644-5050 X X Falcon Heights Community Bldg. 2050 W. Roselawn Ave. Falcon Heights 645-2712 N Y Falcon Heights Fire Station 2077 W. Larpenteur Ave. Falcon Heights 644-5575 X X City of Lauderdale Inst. Name Street Address City Phone I-Net Sub Lauderdale City Hall F1891 Walnut St. Lauderdale 631-0300 X 17X EXHIBIT B - Continued Nor.th Suburban Area Institutionol Connections Page 2 Inst. Name Street Address City Phone I-Net Sub City of Little Canada Inst. Name Street Address City Phone I-Net Sub City Garage 3100 Country Drive Little Canada Y Y Ice Rink 430 Little Canada Road Little Canada Y Ice Rink 100 E. Demont Little Canada Y Little Canada City Hall 515 E. Little Canada Rd. Little Canada 484-2177 X X Little Canada Fire Station 325 Little Canada Rd. Little Canada 871-5503 X X Old Little Canada Fire Station 440 E. Little Canada Rd. Little Canada 871-5503 X X Shelter 350 Eli Road Little Canada Y Shelter 2950 Centerville Little Canada Y Util.- Booster Station 141 Co. Rd. B Little Canada Y Util.- Lift Station 672 Co. Rd. B Little Canada Y Util.- Lift Station 2537 Keller Parkway Little Canada Y Util.- Lift Station 99 Co Rd. B Little Canada Y Util.- Lift Station 2458 Dianna Lane Little Canada Y Util.- Lift Station 2707 Jessica Court Little Canada Y Util.- Lift Station 1002 Co. Rd. D Little Canada Y Util.- Lift Station 216 Co. Rd. B-2 E. Little Canada Y Util.- Water Meter Station 5 Roselawn Little Canada Y Util.- Water Tower 517 Little Canada Road Little Canada Y City of Mounds View Inst. Name Street Address City Phone I-Net Sub Bridges Golf Course 2850 82nd Lane NE Blaine Y Y Mounds View City Hall 2401 Hwy. 10 Mounds View 784-3055 X X Mounds View Community Center 5394 Edgewood Dr. Mounds View Y Y Mounds View Fire Station Hwy. 10 Mounds View X Y Mounds View Maintenance Gar. 2466 NE Bronson Dr. Mounds View 784-3114 Y X Util.- Booster Station (Reservoir) 2450 Bronson Drive Mounds View Y EXHTBIT B - Continued North Suburban Area Institutional Connections Page s Inst. Name Street Address City Phone I-Net Sub Util.- Lift Station #1 5396 Raymond Ave. Mounds View Y Util.- Lift Station #2 8251 Groveland Road Mounds View Y Util.- Well #1 2401 Highway 10 Mounds View Y Util.- Well #2 2524 Bronson Drive Mounds View Y Utif.- Well #3 2426 Bronson Drive Mounds View Y Util.- Well #4 2408 Hillview Drive Mounds View Y Util.- Well #5 5100 Long Lake Road Mounds View Y Util.- Well #6 7545 Groveland Road Mounds View Y City of New Brighton Inst. Name Street Address City Phone I-Net Sub Brightwood Hiffs Golf Course 1975 NW Silver Lake Rd. New Brighton 638-2150 X X New Brighton City Hall 803 NW 5th Ave. New Brighton 638-2100 X X New Brighton Fire Station 785 NW 5th Ave. New Brighton 633-2727 X X New Brighton Maintenance Bldg. 700 NW 5th Ave. New Brighton Y X New BrightonFamily Service Cntr. 400 NW 10th St. New Brighton 638-2130 X X Util.- Lift Station 1(under const.) To Be Assigned New Brighton Y Util.- Lift Station 2 531 5th Avenue NW New Brighton Y Util.- Lift Station 3 515 3rd Avenue NW New Brighton Y Util.- Lift Station 7 650 Cleveland Ave. New Brighton Y Util.- Lift Station 8 24 New Brighton Road New Brighton Y Util.- PGAC Water Treatment Plant 3001 5th Street NW New Brighton Y Util.- Well 10 & Iron Removal Plant 660 5th Street SW New Brighton Y Util.- Well 11 & Iron Removal Plant 1375 7th Street NW New Brighton Y Util.- We(I 12 & Iron Removaf Plant 2400 Mississippi St. ew Brighton y Util.- Well 13 & Water Treatment 680 5th Street NW New Brighton Y Util.- Well 14 1377 7th Street NW New Brighton Y Util.- Well 15 590 20th Street NW New Brighton Y . . EXHIBIT B - Continued North Suburban Areo Institutional Connections Page 4 Inst. Name Street Address City Phone I-Net Sub Util.- Well 8 600 Silver Lake Road New Brighton Y . Util.- Wells 3& 4 700 Silver Lake Road New Brighton Y Util.- Wells 5& 6 3001 5th Street NW New Brighton Y Util.- Wells 9 2745 5th Street NW New Brighton Y City of North Oaks Inst. Name Street Address City Phone I-Net Sub North Oaks City Hall 100 Village Center Dr. North Oaks 484-5777 X X North Oaks Recreation Center 4 Mink Lane North Oaks X X City of Roseville Inst. Name Street Address City Phone I-Net Sub John Rose Minnesota OVAL 2661 Civic Center Dr. Roseville 415-2164 X Y Roseville Activity Center 2800 Arona St. Roseville 415-2100 X X Roseville Cedarholm Golf Course 2323 N. Hamline Ave Roseville 633-5817 X Y Roseville Central Park-Bandshell Lexington Ave. -(FH Inet) Roseville X N Roseville City Hall 2660 Civic Center Dr. Roseville 490-2200 X x Roseville Fire Station 1 2701 N. Lexington Ave. Roseville 490-2306 X X Roseville Fire Station 2 2501 N. Fairview Ave. Roseville 636-6763 X X Roseville Fire Station 3 2335 N. Dale St. Roseville 484-5297 X X Roseville Gymnastics Cntr. 1240 Co. Rd. B-2 Roseville 415-2190 Y Y Roseville Harriet Alexander Nature 2520 N. Dale St. Roseville 415-2161 X X Roseville Ice Arena 2661 Civic Center Dr. Roseville 415-2164 X X Roseville License Bureau 2701 Lexington Ave. Roseville 490-2294 X X Roseville Maintenance Building 2660 Civic Center Dr. Roseville 490-2310 Y X Util.- Booster Station 706 Shryer Ave. Roseville Y Util.- Elevated Tank 2501 N. Fairview Ave. Roseville Y Util.- Lift Station 635 S. Owasso Blvd Roseville Y Util.- Lift Station 2980 Galtier Street Roseville Y Util.- Lift Station 1610 Co. Rd. C-2 Roseville Y . . EXfIIBIT B - Continued North Suburban Area Institutiona! Connections Page 5 Inst. Name Street Address City Phone I-Net Sub Util.- Lift Station 3033 Clevefand Ave. Roseville Y Util.- Lift Station 435 Wagner Street Roseville Y Util.- Lift Station 2013 Cohansey Blvd. Roseville Y Util.- Lift Station 1680 Fernwood Ave. Roseville Y Util.- Lift Station 3050 Lexington Ave. Roseville Y Util.- Lift Station 1216 Josephine Road Roseville Y Util.- Lift Station 3050 Long Lake Road Roseville Y Util.- Lift Station 1953 Fulham Street Roseville Y Util.- Lift Station 2050 Walnut Street Roseville Y Util.- Lift Station 201 Center Street Roseville Y Util.- Storm Water Pumping Station 2535 N. Victoria St. Roseville Y Util.- Storm Water Pumping Station 1658 Millwood Aye. Roseville Y Util.- Storm Water Pumping Station 591 Owasso Hills Drive Roseville Y Util.- Storm Water Pumping Station 2340 St. Croix Street Rosevilfe Y Util.- Storm Water Pumping Station 1999 Fulham Street Roseville Y City of Shoreview Inst. Name Street Address City Phone I-Net Sub Shoreview City Ha(I /Community 4600N. Victoria St. Shoreview 490-4600 X X Shoreview Maintenance Bldg. 4665 N. Victoria St. Shoreview 490-4650 Y Y Util.- Booster Station 855 Highway 96 Shoreview Y Util.- Lift Station 4468 Chatsworth Shoreview Y Util.- Lift Station 3580 Cohansey Shoreview Y Util.- Lift Station 425 Gramsie Road Shoreview Y Util.- Lift Station 875 Gramsie Road Shoreview Y Utii.- Lift Station 636 Highway 96 Shoreview Y Util.- Lift Station 1088 Lake Beach Drive Shoreview Y Util.- Lift Station 3366 Lexington Ave. Shoreview y EXHIBIT B - Continued North Suburban Area lnstitutional Connections Page s Inst. Name Street Address City Phone I-Net Sub Util.- Lift Statio.n 4680 Lexington Ave. Shoreview Y Util.- Lift Station 915 Oak Ridge Shoreview Y Util.- Lift Station 3194 West Owasso Blvd. Shoreview Y Util.- Lift Station 3212-1/2 W. Owasso Blvd. Shoreview Y Util.- Lift Station 4338 Reiland Lane Shoreview Y Util.- Lift Station 4465 Rice Street Shoreview Y Util.- Lift Station 699 Schifsky Road Shoreview Y Util.- Lift Station 700 Schifsky Road Shoreview Y Util.- Lift Station 4307 Snai( Lake Blvd. Shoreview Y Util.- Lift Station 4412 Snail Lake Blvd. Shoreview Y Util.- Lift Station 512 Suzanne Ave. Shoreview Y Util.- Lift Station 5024 Turtle Lane East Shoreview Y Util.- Lift Station 3121 Woodbridge Shoreview Y Util.- Sucker Lake Pump 50 Highway 96 W. Shoreview Y Util.- Water Tower 745 County Road E Shoreview Y Util.- Water Tower 5880 Lexington Avenue Shoreview Y Util.- Well 785 Highway 96 Shoreview Y Util.- Well 883 Highway 96 Shoreview Y Util.- Well 4965 Hodgson Road Shoreview Y Util.- Well 902 Monterey Shoreview Y Util.- Well 750 Mound Avenue Shoreview Y Util.- Well 4675 Victoria Street Shoreview Y City of St. Anthony Inst. Name Street Address City Phone I-Net Sub SAV Liquor Store #1 2900 Pentagon Drive St. Anthony Y SAV Liquor Warehouse #2 3900 Silver Lake Road St. Anthony Y St. Anthony City Half 3301 Silver Lake Rd. St. Anthony 789-8881 X X . , EXHIBIT B - Continued North Suburban Area Institutional Connections Page 7 Inst. Name Street Address City Phone I-Net Sub St. Anthony Fire Station 2900 Kenzie Terrace St. Anthony 788-1434 X X St. Anthony Public Works 3801 Chandler Dr. St. Anthony X X Util.- Foss Road Lift 3829 Foss Road St. Anthony Y Util.- Harding Lift 2700 37th Ave St. Anthony Y Util.- Water Filtration Plant 3807 Silver Lake Road St. Anthony Y Util.- Well #5 2920 Silver Lake Road St. Anthony Y CN Inst. Name Street Address City Phone I-Net Sub Canadian Days Parade-drop l.ittle Canada Rd Little Canada X CTV Irondale studio 2425 Long Lake Rd. New Brighton 783-9334 X X CN Van 1 2425 Long Lake Rd. New Brighton 783-9334 X CTV Van 2 950 Woodhill Dr. Roseville 481-9554 X Lake Owasso Beach - drop N Owasso Bvd. Shoreview X LC Spooner Park- drop Eli Rd. Little Canada X NB Parade - drop New Brighton X RAHS Parking Lot (on B2)- drop Roseville X Rosefest parade - dropl Lexington Ave. Roseville X Rosefest parade - drop2 Lexington Ave. Roseville X Rosetown Legion field-drop W. Co. Rd. C. Little Canada X Dist 282 - SA/NB Schools Inst. Name Street Address City Phone I-Net Sub ISD 282 District Office SA/NB 3303 33rd Ave. NE St. Anthony 706-1000 X X St. Anthony High School 3303 33rd Ave. NE St. Anthony 706-1100 X X St. Anthony Midd(e School 3303 33rd Ave. NE St. Anthony 706-1200 X X Wilshire Park Elementary 3600 NE Highcrest Rd. St. Anthony 706-1030 X X Dist 621 - Mounds View Inst. Name Street Address City Phone I-Net Sub Area Learning Center 4182 N. Lexington Ave. Shoreview 482-8203 N rX] a EXIIIBIT B - Continued North Suburban Ared Institutional Connections Page s Inst. Name Street Address City Phone I-Net Sub Bel Air Elementary School 1800 NW 5th St. New Brighton 633-3521 x.)( Chippewa Middle Schooi 5000 Hodgson Rd. North Oaks 483-6635 X X Edgewood Middle School 5100 N. Edgewood Dr. Mounds View 784-2010 X X Highview Middle School 2300 NW 7th St. New Brighton 633-8144 X X Irondale High Schoo! 2425 Long Lake Rd. New Brighton 786-5200 X X ISD 621 District Service Center 2959 Hamline Ave. Roseville 636-3650 X X Island Lake Elementary 3555 N. Victoria St. Shoreview 484-5553 X X Mounds View High School 1900 W. Co. Rd. F Arden Hills 633-4031 X X Oak Grove High School 5100 Hodgson Rd. North Oaks 484-2057 X X Pike Lake Elementary 2101 NW 14th St. New Brighton 633-7711 X X Pinewood Elementary 5500 Quincy St. Mounds View 784-4006 X X Ralph Reeder Center 500 NW 10th St.. New Brighton 636-1910 X X Snail Lake Elementary 4550 Hodgson Rd. Shoreview 483-6725 X X Sunnyside Elementary 2070 W. Co. Rd. H New Brighton 784-5226 X X Turtle Lake Elementary 1741 W. Co. Rd. I Shoreview 484-2150 X X Valentine Hills Elementary 1770 W. Co. Rd. E2 Arden Hills 631-0737 X X Dist 623 - Roseville Area Inst. Name Street Address City Phone I-Net Sub Brimhall Elementary 1744 W. Co. Rd. B Roseville 638-1958 X X Central Park Elementary 535 W. Co. Rd. B2 Roseville 481-9951 X X Edgerton Elementary School 1929 Edgerton Street Map(ewood 772-2565 X X Emmet D Willams Elem 955 W. Co. Rd. D Shoreview 482-8624 X X Fairview Community Center 1910 W. Co. Rd. B Roseville 631-1013 X X Falcon Heights Elementary 1393 W. Garden Av. Falcon Heights 646-0021 X X ISD 623 District Center 1251 W. Co. Rd. B2 Roseville 635-1600 x X Littfe Canada Elementary 400 Eli Rd. Little Canada 490-1353 X X Parkview Center School 701 W. Co. Rd. B Roseville 487-4360 X X c ' , EXHIBIT B - Continued North Suburban Areo Institutional Connections Page 9 lnst. Name Street Address City Phone I-Net Sub Roseville Area High School 1261 Hwy. 36 Roseville 635-1660 X X Roseville Area Middle Sch 15 E. Co. Rd. B2 Little Canada 482-5280 X x Guard/Reserves lnst. Name Street Address City Phone I-Net Sub Army Reserve Training Cntr. Lexington & Hwy. 96 Arden Hills Y Y National Guard Armory 211 N. McCarrons Lake Roseville 296-4140 X X Hennepin County lnst. Name Street Address City Phone I-Net Sub St. Anthony Public Library 2900 NE Pentagon Dr. St. Anthony 781-1900 X X Higher Education lnst. Name Street Address City Phone I-Net Sub Bethel College 3900 Bethel Dr. Arden Hills 638-6180 X X Capital View (Dist. 916) 70 W. Co. Rd. B2 Little Canada 415-5413 X X Northwestern Col- FB field 3003 Snelling Ave. N. Roseville 631-5100 X X Northwestern Col- Gym/BB 3003 Snelling Ave. N. Roseville 631-5267 X X Northwestern College-Studio 3003 Snelling Ave. N. Roseville 631-5312 X X U of M- Earl Brown Center 1890 Buford Ave. Falcon Heights 624-2777 X United Theo. Seminary 3000 NW 5th St. New Brighton 633-4311 Y Y ISP lnst. Name Street Address City Phone I-Net Sub Risdahl-Linahan Agency 2475 NW 15th St. New Brighton 631-1098 X T.I.E.S. 1925 W. Co. Rd. B2 Roseville 638-2339 X Lake Johanna Fire Dept. Inst. fVame Street Address City Phone I-Net Sub Lake Johanna Fire Station 1 2346 New Brighton Rd. Arden Hills 633-0349 Y X Lake Johanna Fire Station 2 4676 Hodgson Rd. Shoreview 484-3444 Y Y Lake Johanna Fire Station 3 1140 W. Co. Rd. I Shoreview 481-7025 Y X Lake Johanna Fire Station 4 3615 N. Victory St. Shoreview 483-0767 X x EXffiBIT B - Continued ~ North Suburbcn Area Institutional Connections Page to Inst. Name Street Address City Phone 1-Net Sub Non-Profit Inst. Name Street Address City Phone I-Net Sub Northwest Youth & Family Services [3490 Lexington Ave. Shoreview 486-3808 Y Y Private Schools Inst. Name Streei Address City Phone I-Net Sub Concordia Academy 2400 N. Dale St. Roseville 484-8429 X X Corpus Christi School 2131 N. Fairview Ave. Roseville 639-8888 X King of Kings School 2330 N. Dale St. Roseville 484-9206 X X North Side Christian School 7901 Red Oak Drive Moundsview 786-8632 X St. Charles Barromeo 2727 NE Stinson Bvd. St. Anthony 78 1-2643 X St. Christopher's Ep. 2300 N. Hamline Ave. Roseville 633-4589 X St. John the Baptist School 845 NW 2nd Ave. New Brighton 633-1522 X X St. John the Evangelist 2621 McMenemy St. Little Canada 484-2708 X X St. Odilia School 3495 N. Victory St. Shoreview 484-3364 X St. Rose of Lima 2072 N. Hamline Ave. Roseville 645-9389 X X Ramsey County Inst. Name Street Address City Phone I-Net Sub Island Lake Golf Center Grey Fox Rd. Shoreview Y Y Lake Owasso Residence 210 N. Owasso Bvd. Shoreview 484-2234 Y Y Ramsey Co. Library - Arden Hills 1941 W. Co. Rd. E2 Arden Hills 636-1790 X X Ramsey Co. Library - Mounds View 2576 Hwy. 10 Mounds View 784-8829 Y X Ramsey Co. Library - Roseville 2180 N. Hamline Ave. Roseville 631-0494 X X Ramsey Co. Library - Shoreview 4570 N. Victoria St. Shoreview 486-2210 X X Ramsey Co. Public Works Bldg. 3377 N. Rice St. Shoreview 484-9104 Y X Ramsey Co. Sheriff Patrol Station 655 W. Co. Rd. E Shoreview 481-1300 Y Y Ramsey Co. Women's Detention Kent & Larpenteur Y Y Shoreview Ice Arena 877 W. Hwy. 96 Shoreview 484-2400 Y Y , . EXHIBIT C D-es ription of Work Time Frame Engineering Walkout 0-6 months Engineering Design 2-8 months Commerce Permitting Day 75 Fiber Optic Cable and Node Tnstallation 11-16 months Amplifier Replacement 12-24 months Passive Equipment Replacement 18-36 months System Balancing and Proof -of-Performance 36 months Activation in Phases; Completion By November 30, 2000 EXHIBIT D - NORTH SUBLTT_2BAN I-NET PF,RFORMANCE STANDAR1)S Upon completion of the I-Net upgirade: I. Video Transmission A. Video transmission will comply with the following performance : standards: 1. Carrier to noise ratio = 45dB or better 2. Carrier to composite triple beat = 53dB or better 3. Carrier to composite second order = 55 dB or better 4. Carrier to cross modulation = 55 dB or better 5. System signal level variations (peak to valley) = n= 10 + 2 or better for all cowual cable portions of the I-Net (where N= the number of amplifiers in cascade). B. Testing will occur twice yearly following the timing established in CFR 76.601 and 76.605. 1. From the institution to the longest subscriber cascade. 2. From the institution through the applicable headend/ hub site returning back to the same institution. 3. Performed using existing I-Net carriers active at the time of the testing, wtuch will subject them to service interuptions. 4. Completeci at Company-designated entry demarcation point at the institution. 5. The systern will meet calcnlated worst case fully loaded video and audio mea.surements, taking into consideration existing I-Net data loading at the time the measurement is taken. 6. Under ordGnary operating conditions. 2. Digital Transmission A. For I-Net that is 50% or more coaxial cable, a Bit Error Rate of 1 x 10(-8) at the demarcation point. 1. Outage tunes not included 2. Ordinary operating conditions B. For I-Net that is 50% or more fiber optic cable, a Bit Error Rate of 1 x 10(- 9) at the demarcation point. 1. Outage thnes not included 2. Ordinary operating conditions C. For both coaxial ;and fiber network, the company will meet or exceed a reliability factor of 99.965% on an annual basis. D. Testing will occux twice yearly, during the months of January/February and July/August. . , EXHIBIT D - Continued 3. Repair and Maintenance A. Company will provide a repair force of technicians capable of responding properly to all requests for service by I-Net Users and available on a 7 X 24 X 365 basis. B. Under normal operating conditions, the initiat page to the technician on call wilI be within a 10 minute time frame. Barring situations that are outside the control of the Company (i.e., physical damage to the network caused by third parties not under the control of the cable company, weather related restrictions, etc.), the company will continue to work on a service problem until it is resolved and complete its resolution of such problem within eieht (8) hours, if resolution of such problem is within control of company. C. Fiber may be incorporated, where necessary, to reduce amplifier cascades to meet performance standards. Where possible, fiber nodes may be located within the building or facility of the I-Net user. D. I-Net Users will be notified at least seven days in advance of any scheduled maintenance that will interrupt service on the I-Net, unless I-Net Users agree to waive such time frame. Where possible, such maintenance will be scheduled at times of low usage. CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE SUMMARY ORDINANCE NO. 307 "AN ORDINANCE GRANTING A FRANCHISE TO MEDIAONE TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CITY OF ARDEN HILLS; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE." On the 291h day of June, 1998, the Arden Hills City Council adopted Ordinance No. 307, and pursuant to local and Minnesota State law by five affirmative votes, directed that a summary of the ordinance be published in the City's Official Newspaper, and that a printed copy of Ordinance No. 307 be posted on the City's bulletin board and otherwise be made available for inspection by any person during regular business hours at the office of the City Administrator at 4364 West Round Lake Road, Arden Hills, MN 55112. STATEMENT OF INTENT AND PURPOSE The City intends, by the adoption of this Franchise, to bring about the further development of a Cable System, and the continued operation of it. Adoption of this Franchise is, in the judgement of the Council, in the best interests of the City and its residents. FINDINGS The City Council makes the following findings: l. The company technical ability, financial condition, legal qualifications, and character were considered and approved; 2. The company plans for constructing, upgrading, and operating the System were considered and found adequate and feasible; 3. The Franchise complies with applicable laws and regulations; and 4. The Franchise is nonexclusive. SECTION 1. SHORT TITLE AND DEFINITIONS This Section names the Franchise Ordinance as the Cable Franchise Ordinance and contains many definitions regarding the Cable System. PAGE TWO ORDINANCE NO. 307 JUNE 29, 1998 SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS This Section grants a nonexclusive, fifteen (15) year Franchise, pursuant to the company's proposal and additional requirements contained int he Franchise. This Section further provides for free subscriber service to designated public and educational institutions. SECTION 3. CONSTRUCTION STANDARDS This Section provides for permitting requirements, construction code compliance, undergrounding requirements, and other conditions on the use of the Rights-of-Way. SECTION 4. DESIGN PROVISIONS This Section provides for the construction of a System providing 750 MHZ capacity and which is fully activated with the capability of a minimum of up to eight-one (81) video channels. The company will develop, construct, and operate a System capable of providing non-video services such as high-speed data transmission, Internet access, and other competitive services which shall be activated as Marketplace Need dictates. The company will complete ali construction related to the System upgrade on or before November 30, 2000. The Section contains requirements regarding testing and technical standards and provides for four (4) channels to be interconnected with all adjoining cable systems. SECTION 5. SERVICE PROVISIONS This Section provides for rate regulation when permitted by law, customer service standards, late fees and subscriber contracts. SECTION 6. ACCESS CHANNEL(S) PROVISIONS The company will provide twelve (12) channels for public, education and government programming. The company will continue to comply with all requirements regarding community programming operations and funding, and in addition will increase the funding by $667,286 over the life of the Franchise. PAGE THREE ORDINANCE NO. 307 JUNE 29, 1998 SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS This Section contains provisions requiring the company to dedicate certain capacity for use by designated institutions, and contains terms and conditions far the usage and performance of this institutional network. SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS This Section contains provisions requiring the company to pay quarterly to City, or its delegatee, a Franchise Fee in an amount equal to five percent (5%) of its quarterly Gross Revenues. In addition, the City shall have the right to require the company to provide copies of any records, and the company must file with the City a report of all Gross Revenues and shall furnish such other reasonable reports with respect to operations as may be required. If requested, the company shall furnish the maps, plats, and permanent records of the location and character of all facilities. Finally, the City may require evaluation sessions at any time during the term of this Franchise. As a result of the review session, the company will meet with City and undertake good faith efforts to reach agreement on changes and modifications to the Franchise which are both economically and technically feasible. SECTION 9. GENERAL FINANCIAL.AND INSURANCE PROVISIONS This Section contains provisions requiring the company to furnish a performance bond to City in the amount of $500,000 and deliver to City an unconditional Letter of Credit from a National or State Bank approved by City in the amount of $25,000 to secure compliance with the terms of the Franchise. In addition, this Section provides that the City and its agents shall not be liable for any loss or damage arising out of any action of the campany with respect to this Franchise. Finally, as a part of the indemnification above, the company shall maintain a comprehensive general liability insurance policy for any and all damages and penalties which may arise as a result of this Franchise in the sum of not Iess than $1,000,000 for personal injury or death of any one Person, and $2,000,000 for personal injury or death of two or more Persons in any one occurrence, $500,000 for property damage to any one person and $2,000,000 for property damage resulting from any one act or occurrence. PAGE FOUR ORDINANCE NO. 307 JUNE 29,1998 SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE This Section provides that the City reserves the right to revoke this Franchise, if it is determined by City that the company has violated material provision(s) of this Franchise, has attempted to evade any of the provisions of the Franchise; or has practiced fraud ar deceit upon CiTy. This Section also contains provisions regarding abandonment of service and removal of equipment and requires that the company receive approval prior to sale or transfer. SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS This Section prohibits discrimination and requires subscriber privacy by the company. SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS This Section prohibits unauthorized connections to the System or damage to the System. SECTION 13. MISCELLANEOUS PROVISIONS This Section contains a variety of requirements concerning Franchise renewal, amendments, compliance with applicable law, and interpretation of the Franchise. SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS This Section requires that the Franchise be published in accordance with applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of acceptance by the company in accordance with the provisions of Section 14.2. The company shall accept this Franchise within sixty (60) days of its enactment by the City Council provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied with and all applicable timelines have run for the adoption of a City ordinance. Adoption Date,: Passed by the City Council of the City of Arden Hills, the 29 h day of June, 1998. DENNIS PROBST, MAYOR ATTEST: (facsimile) BRIAN FRITSINGER, CITY ADMINISTRATOR (facsimile) (Affidavit Required) r t ORDINANCE NO. 307 CITY OF ARDEN HILLS CABLE TELEVISION FRANCHISE ORDINANCE Date: July 15, 1998 Prepared by: Thomas D. Creighton Robert J. V. Vose Bernick and Lifson, P.A. 1200 The Cotonnade 5500 «'avzata Boulevard Minneapolis, Minnesota 55416 Telephone: (612) 546-1200 Facsimile: (612) 546-1003 STATEMENT OF INTENT AND PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 FINDINGS ...................................................................1 SECTION l. SHORT TITLE AND DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1. Short Title ..................................................2 2. Definitions ..2 SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . 5 1. Grant of Franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2. Grant of Nonexclusive Authoritv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3. Lease or AssiQnment Prohibited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4. Franchise Term ..............................................6 5. Previous Franchises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6. Compliance with A1212licable Laws. Resolutions and Ordinances. 6 7. Rules of Grantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8. Territorial Area Involved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9. Written Notice ...............................................7 10. Subscriber Network Drops to Designated Buildings . . . . . . . . . . . . . . . . . 8 SECTION 3. CONSTRUCTION STANDARDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1. Reizistration. Permits and Construction Codes . . . . . . . . . . . . . . . . . . . . . . 9 2. Repair of Riizhts-of-Way and Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3. Conditions on Right-of-Way Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4. UnderQroundinQ of Cable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 5. Installation of Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 6. Safetv Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 SECTIOivT 4. DESIGN PROVISIONS .................................................11 1. Svstem Uparade: Minimum Channel Capacitv . . . . . . . . . . . . . . . . . . . . 11 2. Construction Timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3. Interruption of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4. Technical Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 5. SpecialTesting . ............................................13 6. Drop Testing and Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3) 7. FCC Reports . ..............................................14 8. Interconnection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 9. Nonvoice Return Capability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 10. Lockout Device .............................................14 { f SECTION 5. SERVICE PROVISIONS ................................................14 1. ReQulation of Service Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2. Non-Standard Installations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3. SalesProcedures ............................................15 4. Subscriber Inquiry and Complaint Procedures . . . . . . . . . . . . . . . . . . . . . 15 5. Subscriber Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 6. Refund Policv . .............................................16 7. Late Fees ..................................................16 8. Office Policv ...............................................16 SECTION 6. ACCESS CHANNEL(S) PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1. Public. Educational and Government Access . . . . . . . . . . . . . . . . . . . . . . 16 2. Charges for Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3. Access Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 4. Access Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 5. Studio Relocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 6. Regional Channel6 ..........................................18 7. State and Federal Law comQliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . 18 1. Capacin .................................................18 2. Grantee's Use of Capacitv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3. End-User Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 4. Service Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 SECTION 8. OPERATIO` AtiD ADMINISTRATION PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . 20 1. Administration of Franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. DeleQated Authoritv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3. Franchise Fee . .............................................20 4. Acces;sto Records ...........................................20 5. Rzronu, and Maps to be Filed xvith Cit-% . . . . . . . . . . . . . . . . . . . . . . . . . 2 6. Periodic Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 SECTION 9. GENERAL FI-\--ANCL-%,L _Ai'\TD L\ SL~RANCE PROVISIOti S . . . . . . . . . . . . . . . . . . . 21 l. Perfe_--a-nce Bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2. Lert.r of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 3. Indemr.ification of Citv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4. Insurance ..................................................25 ! r SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE 26 1. Cit `y s Right to Revoke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2. Procedures for Revocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3. Abandonment of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4. Removal After Abandonment. Termination or Forfeiture. . . . . . . . . . . . 27 5. Sale or Transfer of Franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 1. Discriminatorv Practices Prohibited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2. Subscriber Privacv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS . . . . . . . . . . . . . . . . . . 31 1. Unauthorized Connections or Modifications Prohibited . . . . . . . . . . . . . 31 2. Removal or Destruction Prohibited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3. Penaltv ....................................................31 SECTION 13. MISCELLANEOUS PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 1. Franchise Renewal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 2. Work Performed bv Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3. Amendment of Franchise Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4. Compliance with Federal, State and Local Laws . . . . . . . . . . . . . . . . . . . 32 5. Nonenforcement bv Citv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 6. Rights Cumulative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 7. Grantee Acknowledrment of Validitv of Franchise . . . . . . . . . . . . . . . . . 33 SECTION 14. PUBLICATION EFFECTIVE DATE: ACCEPTA\'CE AND EXHIBITS . . . . . . . . . . 33 1. Publication: Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2. Acceptance . ...............................................33 f w ORDINANCE NO. 3 0 7 AN ORDINANCE GRANTING A FRANCHISE TO MEDIAONE NORTH CENTRAL COMMUNICATIONS CORP. TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CITY OF ARDEN HILLS; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS-OF-WAY [IN CONJUNCTION WITH THE CITY'S RIGHT-OF-WAY ORDINANCE, IF ANY, AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN; The City Council of the City of Arden Hills ordains: STATEMENT OF INTENT AND PURPOSE The City intends, by the adoption of this Franchise, to bring about the further development of a Cable System, and the continued operation of it. Such development can contribute significantly to the communication needs and desires of the residents and citizens of the City and the public generally. Further, the City may achieve better utilization and improvement of public services and enhanced economic development with the development and operation of a Cable Communication System. Adoption of this Franchise is, in the judgment of the Council, in the best interests of the City and its residents. FINDINGS In the review of the request and proposal for renewal by Grantee and negotiations related thereto, and as a result of a public hearing, the City Council makes the following findin~s: 1. The Grantee's technical ability, financial condition, legal qualifications, and character were considered and approved in a full public proceedinQ after due notice and a reasonable opportunity to be heard; 2. Grantee's plans for constructing, upgrading, and operatina the System were considered and found adequate and feasible in a full public proceedinQ after due notice and a reasonable opportunity to be heard; 3. The Franchise granted to Grantee by the City complies with the existina applicable Minnesota Statutes, federal laws and regulations; and 4. The Franchise granted to Grantee is nonexclusive. 1 r SECTION 1. SHORT TITLE AND DEFINITIONS 1. Short Title. This Franchise Ordinance shall be known and cited as the Cable Franchise Ordinance. 2. Definitions. For the purposes of this Franchise, the following terms, phrases, words, and their derivations shall have the meaning given herein. When not inconsistent with the context, words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. The word "may" is directory and discretionary and not mandatory. a. "Basic Cable Service" means any service tier which includes the lawful retransmission of local television broadcast signals and any public, educational, and governmental access programming required by the Franchise to be carried on the basic tier. Basic Cable Service as defined herein shall not be inconsistent with 47 U.S.C. § 543(b)(7). b. "City" means City of Arden Hills, a municipal corporation, in the State of Minnesota, acting by and through its City Council, or its lawfully appointed designee. c. "City Council" means the governing body of the City. d. "Cable Service" or "Service" means the provision of communications and/or entertainment services as "Cable Service" is defined by Minn. Stat. § 238.01 et seq. and 47 U.S.C § 521 et seq., as may be amended from time to time, but including Institutional Network services. e. "Cable System" or "Svstem" means a system of antennas, cables, wires, lines, towers, wavewides, or other conductors, Converters, equipment, or facilities located in City and designed and constructed for the purpose of producing, receivinQ, transmitting, amplifying, or distributing audio, video, and data. System~as defined herein shall not be inconsistent with the defuutions set forth in 11inn. Stat. 238.02, subd. 3 and 47 U.S.C. § 522(7). f. "Class IV Cable Channel" means a signaling path provided by a Cable System to transmit sianals of anv type from a Subscriber terminal to another point in the System_ g. "Commercial Need" or "Marketplace Need" means such need or market demand which City and Grantee may jointly determine requires action or performance by Grantee as specifically set forth in this Franchise. Such determination shall be based upon evidence and information presented by 2 , - City, Grantee and other interested parties at a duly noticed public proceeding. Grantee shall have an opportunity to present evidence regarding the level of market demand, the cost of ineeting such demand and the availability of technologies to meet such demand. Any decision regarding Commercial or Marketplace Need which requires action by Grantee shall not be unreasonable. h. "Converter" means an electronic device which converts signals to a frequency acceptable to a television receiver of a Subscriber and by an appropriate selector permits a Subscriber to view all Subscriber signals included in the service. i. "Don" means the cable that connects the ground block on the Subscriber's residence or institution to the nearest feeder cable of the System. j. "FCC" means the Federal Communications Commission and any legally appointed, designated or elected agent or successor. k. "Franchise" or "Cable Franchise" means this ordinance and the regulatory and contractual relationship established hereby. 1. °Grantee" is MediaOne North Central Communications Corp., its lawful successors, transferees or assignees. M. "Gross Revenues" means all revenue received directly or indirectly by the Grantee, its affiliates, subsidiaries, parent, or person in which Grantee has financial interest of five percent (5 or more, from the operation of its System within Ciry including, but not limited to, all Cable Service fees, Franchise Fees, PEG Fees, late fees, Installation and reconnection fees, upgrade and downarade fees, advertising revenue, Converter rental fees, I.ockout Device fees, fees related to commercial and institutional usage of the I-net, Internet access fees, cable modem service fees and interest. The term Gross Revenues shall not include any taxes on services furnished by Grantee imposed by any municipaliry, state, or other governmental unit and collected by Grantee for such Qovernmental unit. n. "Installation" means the eonnection of the System from feeder cable to the point of connection with the Subscriber Converter or other terminal equipment. o. "Institutional Network" or "I-net" means the discrete communications network and services related to such network provided by Grantee to identified institutions as required by this Franchise. 3 r p. "Lockout Device" means an optional mechanical or electrical accessory to a Subscriber's terminal which inhibits the viewing of a certain program, certain channel, or certain channels provided by way of the Cable Communication System. q. "Memorandum of Understanding" or "MOU" means that certain agreement dated November 3, 1994 regarding PEG access funding, creation of a "PEG Fee" and certain rate regulatory issues. r. "North Suburbs Access CoM,oration" means that certain non-profit corporation or its lawful successor, designee, or assignee, which is delegated authority and responsibility for providing certain community programming functions including public access. s. "North Suburban Svstem" means the Cable System located in those municipalities collectively comprising the North Suburban Cable Service territory as originally approved by the Minnesota Cable Communications Board. t. "Pav Television" means the delivery over the System of pay-per-channel or pay-per-program audio-visual signals to Subscribers for a fee or charge, in addition to the charge for Basic Cable Service or Cable Programming Services. U. "Per on" is any person, firm, partnership, association, corporation, company, or other legal entity. v. "Proposal" means the Proposal for Franchise Renewal dated May 13, 1997, submitted to the North Suburban Cable Communications Commission by Group W Cable of the North Suburbs, Inc., as amended by the revised Renewal Proposal submitted under cover letter dated AuQust, 4, 1997, and related correspondence and prior agreements or resolutions which are attached hereto as Exhibit A. w. "Right-of-Wav" or "RiQhts-of-Wav" means the area on, below, or above any real property in City in which the City has an interest including, but not limited to any street, road, hiahway, alley, sidewalk, park«ay, park, skyway, or any other place, area, or real property awned by or under the control of City, includinQ other dedicated Rights-of-Way for travel purposes and utility easements. X. "Right-of-Wav Ordinance"means the ordinance codifying requirements regarding regulation, management and use of Rights-of-Way in City, including registration and permitting requirements. 4 , . Y. "Standard Installation" means any residential installation which can be completed using a Drop of 250 feet or less. Z. "Subscriber" means any Person who lawfully receives service via the System. In the case of multiple office buildings or multiple dwelling units, the "Subscriber" means the lessee, tenant or occupant. SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS 1. Grant of Franchise. This Franchise is granted pursuant to the terms and conditions contained herein. Grantee shall comply with all provisions of its Proposal, which is expressly incorporated herein by reference. Failure af Grantee to provide a System as described in its Proposal, or meet obligations and comply with all provisions therein, shall be deemed a violation of this Franchise. 2. Grant of Nonexclusive Authorit.y. a. The Grantee shall have the right and privilege, subject to the permitting and other lawful requirements of City ordinance, ruie or procedure, to construct, erect, and maintain, in, upon, along, across, above, over and under the Rights-of-`'Vay in City a Cable System and shall have the right and privilege to provide Cable Service. The System constructed and maintained by Grantee or its agents shall not interfere with other uses of the Rights-of-Way. Grantee shall make use of existing poles and other above and below facilities available to Grantee to the extent it is technically and economically feasible to do so. b. Notwithstandino the above grant to use Rights-of-Way, no Right-of-Way shall be used by Grantee if City determines that such use is inconsistent with the terms, conditions, or provisions by which such Ri~ht-of-~'Vay was created or dedicated, or with the present use of the Riaht-of-Way. c. This Franchise shall be nonexclusive, and City reserves the riaht to grant a Franchise to any Person at any time durino, the period of this Franchise for the provision oi Cable Service. The terms and conditions of any such Franchise shall bz, when taken as a whole, no less burdensome or more beneficial than those imposed upon Grantee pursuant to this Franchise. 3. Lease or Assignment Prohibited. No Person may lease Grantee's System for the purpose of providing Service until and unless such Person shall have first abtained and shall cunently hold a valid Franchise or other lawful authorization containing substantially similar burdens and obligations to this Franchise. Any assignment of 5 rights under this Franchise shall be subject to and in accordance with the requirements of Section 10, Paragraph 5. 4. Franchise Ter.m. This Franchise shall be in effect for a period of fifteen (15) years from the date of acceptance by Grantee, unless sooner renewed, revoked or terminated as herein provided. 5. Previous Franchises. Upon acceptance by Grantee as required by Section 13 herein, this Franchise shall supersede and replace any previous Ordinance granting a Franchise to Grantee. 6. Compliance with Applicable Laws. Resolutions and Ordinances. a. The terms of this Franchise shall define the contractual rights and obligations of Grantee with respect to the provision of Cable Service and operation of the System in City. However, the Grantee shall at all times during the term of this Franchise be subject to all lawful exercise of the police power, statutory rights, local ordinance-making authority, and eminent domain rights of City. Except as provided below, any modification or amendment to this Franchise, or the rights or obligations contained herein, must be within the lawful exercise of City's police power, in which case the provision(s) modified or amended herein shall be specifically referenced in an ordinance of the City authorizing such amendment or modification. This Franchise may also be modified or amended with the written consent of Grantee as provided in Section 13.3 herein. b. Grantee shall comply with the terms of any Ciry ordinance or regulation of general applicability which addresses usage of the Rights-of-Way within Ciry which may have the effect of supersedinQ, modifying or amending the terms of Section 3 and/or Section 8.5(c) herein, except that Grantee shall not, through application of such City ordinance or regulation of Rights-of- Way, be subject to additional burdens with respect ta usage of Rights-of- Way which exceed burdens on similarly situated Rights-of-Way users. c. In the event of any conflict between Section 3 and/or Section 8.5 (c) of this Franchise and any City ordinance or reaulation which addresses usage of the Rights-of-Way, the conflictina terms in Section 3 and/or Section 8.5 (c) of this Franchise shall be superseded by such City ordinance ar reaulation, except that Grantee shall not, throuQh application of such City ordinance or regulation of RiQhts-of-«~ ay, be subject to additional burdens with respect to usaae of~Rights-of-Way which exceed burdens on similarly situated Rights-of-Way users. 6 d. In the event any City ordinance or regulation which addresses usage of the Rights-of-Way adds to, modifies, amends, or otherwise differently addresses issues addressed in Section 3 and/or Section 8.5 (c) of this Franchise, Grantee shall comply with such ordinance or regulation of general applicability, regardless of which requirement was first adopted except that Grantee shall not, through application of such City ordinance or regulation of Rights-of-Way, be subject to additional burdens with respect to usage of Rights-of-Way which exceed burdens on similarly situated Rights-of-Way users. e. In the event Grantee cannot determine how to comply with any Right-of- Way requirement of City, whether pursuant to this Franchise or other requirement, Grantee shall immediately provide written notice of such question, including Grantee's proposed interpretation, to the Ciry with copy to the North Suburban Cable Communications Commission, in accordance with Section 2.9. The City or Commission shall provide a written response within fourteen (14) days of receipt indicatin; how the requirements cited by Grantee apply. Grantee may proceed in accordance with its proposed interpretation in the event a written response is not received within seventeen (17) days of mailing or delivering such written question. 7. Rules of Grantee. The Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable said Grantee to exercise its rights and perform its obligations under this Franchise and to assure uninterrupted service to each and all of its Subscribers; provided that such rules, regulations, terms and conditions shall not be in conflict with provisions hereto, the rutes of the FCC, the laws of the State of Minnesota, CiR-, or any other body having lawful jurisdiction. 8. Territorial Area Involved. This Franchise is granted for the corporate boundaries of City, as it exists from time to time. In the event of annexation by City, or as development occurs, any new territory shall become part of the terrirorv for which this Franchise is aranted provided, however, that Grantee shall not be required to extend service beyond iL present System boundaries unless there is a minimum of 50 homes per cable mile for underaround plant and 35 homes per cable mile for overhead plant. Acc-.;. to cable service shall not be denied to anv Qroup of potential residential cabiz Subscribers because of [he income of the residents of the area in which such aroup resides. Grantee shall be given a reasonable period of time to construct and actiti-ate cable plant to service annexed or newlti- developed areas but in no e-ent r~~i 7.0 exceed tu-elve (12) months from noucz thereof by City to Grantee and qualiticazion pursuant to the densiry requirements of this Subsection 8. ; 9. 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 7 officer of Grantee or City's Administrator of this Franchise or forty-eight (48) hours 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 whom notice is being given, as follows: If to City: City of Arden Hills 4364 W. Round Lake Road Arden Hills, Minnesota 55112 Attention: City Manager/Administrator With copies to: North Suburban Cable Communications Commission 950 Woodhill Drive Roseville, Minnesota 55113 And to: Thomas D. Creighton, Esq. and Robert J. V. Vose, Esq. Bernick and Lifson, P.A. 5500 Wayzata Boulevard, Suite 1200 Minneapolis, Minnesota 55416 If to Grantee: General Manager MediaOne 950 Woodhill Drive Roseville, Minnesota 55113 With copies to: John F. Gibbs, Esq. Robins, Kaplan, Miller & Ciresi, L.L.P. 2800 LaSalle Plaza 800 LaSalle Ave. So. Minneapolis, Minnesota 55402 Such addresses may be changed by either party upon notice to the other party given as provided in this Section. 10. Subscriber Network Drops to Desianated Buildings. Grantee shall provide, free of charae, Installation of one (1) subscriber network Drop, one (1) cable outlet, one (1) Converter, if necessary, and monthly Basic Cable Service without charge to the institutions identified on Exhibit B attached hereto and made a part hereof, and such other public or educational institutions subsequently designated by City which is located five hundred (500) feet or less from the existing Subscriber network. Any such institution ]ocatzd more than five hundred (500) feet shall be connected if such institution agrees to reimburse Grantee for Grantee's actual costs in excess of the five hundred (500) foot installation actual costs. Additional subscriber network Drops and/or outlets in any of the locations identified on Exhibit B will be installed by Grantee at the cost of Grantee's time 8 and material. Alternatively, said institution may add outlets at its own expense, as long as such Installation rneets Grantee's standards. Grantee shall have three (3) months from the date of City designation of additional institution(s) to complete construction of the Drop and outlet unless weather or other conditions beyond the control of Grantee requires more time. The provision of Institutional Network service is addressed in Section 7 herein. SECTION 3. CONSTRUCTION STANDARDS 1. Registration. Permits and Construction Codes. a. Grantee shall strictly adhere to all state and local laws and building and zoning codes currently or hereafter applicable to location, construction, installation, operation or maintenance of the System in City and give due consideration at all times to the aesthetics of the property. b. Failure to obtain permits or comply with permit requirements shall be grounds for revocation of this Franchise, or any lesser sanctions provided herein or in any other applicable law. 2. Repair of Rights-of-Way and Property. Any and all Rights-of-Way, or public or private property, which are disturbed or damaged during the construction, repair, replacement, relocation, operation, maintenance, expansion, extension or reconstruction of the System shall be promptly and fully restored by Grantee, at its expense, to the same condition as that prevailing prior to Grantee's work, as determined by City. If Grantee shall fail to promptly perform the restoration required herein, after written request of City and reasonable opportuniry to satisfy that request, City shall have the riaht to put the Rights-of-Way, public, or private property back into good condition. In the event City determines that Grantee is responsible for such disturbance or damage, Grantee shall be obliQated to fully reimburse City for such restoration. ~ 3. Conditions on Right-of-Way Use. a. Nothina in this Franchise shall be construed to prevent Ciry from constructin-, maintauuna, repairing or relocatinc, sewers; aradinQ. FevlIIQ, maintainin4, repairinQ, rzlocatin- and/or alterina any Riaht-of-R'av; constructing, laying do«n, repairinQ, maintainina or relocatinQ any a-ater mains; or constructing, maintaining, relocating, or repairing an}' sidzwalk or other public work. b. All System transmission and distribution structures, lines and equipment erected by the Grantee within City shall be located so as not to obstruct or 9 interfere with the use of Rights-of-Way except for normal and reasonable obstruction and interference which might occur during construction and to cause minimum interference with the rights of property owners who abut any of said Rights-of-Way and not to interfere with existing public utility installations. c. If at any time during the period of this Franchise City shall elect to alter or change the grade or location of any Right-of-Way, the Grantee shall, at its own expense, upon reasonable notice by City, remove and relocate its poles, wires, cables, conduits, manholes and other fixtures of the System, and in each instance comply with the reasonable and lawful standards and specifications of City. d. The Grantee shall not place poles, conduits, or other fixtures of System above or below ground where the same will interfere with any gas, electric, telephone, water or other utility fixtures and all such poles, conduits, or other fixtures placed in any Right-of-Way shall be so placed as to comply with a11 reasonable and lawful requirements of City. e. The Grantee shall, upon request of any Person holdina a moving permit issued by City, temporarily move iu wires or fixtures to permit the moving of buildings with the expense of such temporary removal to be paid by the Person requesting the same, and the Grantee shall be given not less than ten (10) days advance written notice to az-range for such temporary changes. f. The Grantee shall have the auchority to trim any trees upon and overhanging the Rights-of-Wav of City so as to prevent the branches of such trees from coming in contact with the wires and cables or other facilities of the Grantee. g. Grantee shall use its best efforts to give reasonable prior notice to any adjacent private propert} owners who will be neaatively affected or impacted by Grantee's work in the Rights-of-Way. ~ 4. iJnderQroundinQ of Cable. Unless other-,ti-ise required by actian of City Council, Grantee must place newly constructed facilities underaround in areas of Ciry where all other utilit}- lines are placed urderaround. Arnplifier boxes and pedestal mounted terminal boxes may be placed above Qround if existing technolooy reasonably requires, but shall be of such size and desiLyn and shall be so iocated as not to be unsightly or unsafe, all pursua~ to plans submittzd «-ith Grantee's permit application(s) and approved by Cirv. 5. Installation of Facilities. No poles, conduits, amplifier boxes, pedestal mounted ternunal boxes, similar structures, or other wire-holding structures shall be erected or installed by the Grantee without required permit of City. 10 6. Safetv Requirements. a. The Grantee shall at all times employ ordinary and reasonable care and shall install and maintain in use nothing less than commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage or injuries. b. The Grantee shall install and maintain its System and other equipment in accordance with City's codes and the requirements of the National Electric Safety Code and a11 other applicable FCC, state and local regulations, and in such manner that they will not interfere with City communications technology related to health, safety and welfare of the residents. c. All System structures, and lines, equipment and connections in, over, under and upon the Rights-of-Way of City, wherever situated or located, shall at all times be kept and maintained in good condition, order, and repair so that the same shall not menace or endanger the life or property of City or any Person. SECTIOti 4. DESIGN PROVISIONS 1. Svstem Upgrade: Minimnm Channel Capacity. a. Grantee shall develop, construct and operate for the term of this Franchise a System providing 750 MHz capacity and which is fully activated with the capability of delivering to all Subscribers capable of receiving them a minimum of up to 81 video proarammed channels. Construction will be completed and channels actiN-ated as described in Exhibit C attached. b. The System will utilize a hybrid fiber-coaxial architecture as detailed in the Proposal. In addition, the System will be designed with the capability to transmit return sianals upstream in the 5- 40 MHz spectrum which shall be activated as Commercial tieed dictates. Finally, in conjunetion with the upg-rade, Grantee shall replace all existinc., headend equipment with state-of- the-art standard frequency headend equipment. c. Grantee shall develop, construct and operate a System capable of providina non-video servicec such as hiah-speed data transmission, Internet access, and other competirive services which shall be activated as Marketplace Need dictates. Grantee may use 200 MHz of the total 750 MHz System capacity for the provision of such services. 11 d. During the design, walkout and preliminary construction activities related to upgrade of the System, Grantee shall seek to identify the non-video interests of the business community within City and will seek to quantify business community demand for non-video services. Grantee shall report the results of its investigation into business demand for non-video services to the City or its designee no later than one (1) year from the commencement date of the Franchise. e. All final programming decisions remain the discretion of Grantee in accordance with the Proposal, provided that Grantee notifies City and Subscribers in writing thirty (30) days prior to any channel additions, deletions, or realignments, and further subject to Grantee's signal carriage obligations hereunder and pursuant to 47 U.S.C. § 531-536, and further subject to City's rights pursuant to 47 U.S.C. § 545. Location and relocation of the PEG Channels shall be governed by Section 6, 1. (c). 2. Construction Timetable. a. Grantee shall complete all construction related to the System upgrade required by Section 4 herein on or before November 30, 2000, in accordance with the specific timeline identified in Exhibit C attached. Failure to timely complete such construction shall be a violation of this Franchise. b. The System, once upgraded, shall continue to offer Service to all dwelling units serviceable prior to upgrade and shall extend Service to any area within the corporate boundaries of City which was not previously constructed which exceeds a density of 35 dwelling units per cable mile or greater for overhead plant and 50 dwelling units per cable mile for underground plant. c. Within ninety (90) days after the commencement of the renewal term of this Franchise, Grantee shall commence application for all necessary pernuts, licenses, certificates and authorizations which are required in the conduct of its business. Failure to timely commence application for the aforementioned authorizations shall be a violation of this Franchise. d. Within ninety (90) days after commencement of the term of this renewed Franchise, Grantee will commence System desian, walkout and all other preliminary construction activities related to uparade of the System and shall give written notice thereof to Ciry upon commencement of such activities. 3. Interruption of Service. The Grantee shall interrupt service only for good cause and for the shortest time possible. Such interruption shall occur during periods of 12 minimum use of the System. If service is interrupted for a total period of more than forty eight (48) hours in any thirty (30) day period, Subscribers shall be credited pro rata for such interruption. 4. Technical Standards. The technical standards used in the operation of the System shall comply, at minimum, with the technical standards promulgated by the FCC relating to Cable Systems pursuant to Title 47, Section 76.601 to 76.617, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. 5. Special Testing. a. The City shall have the r2ght to inspect all construction or installation work performed pursuant to the provisions of the Franchise. In addition, the Ciry may require special testing of a location or locations within the System if there is a particular matter of controversy or unresolved complaints regarding such construction or installation work or pertaining to such location(s). Demand for such special tests may be made on the basis of complaints received or other evidence indicating an unresolved controversy or noncompliance. Such tests shall be limited to the particular matter in controversy or unresolved complaints. The City shall endeavor to so arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers caused by such testing. b. Before ordering such tests, Grantee shall be afforded thirty (30) days following receipt of written notice to investigate and, if necessary, correct problems or complaints upon which tests were ordered. The City shall meet with Grantee prior to requiring special tests to discuss the need for such and, if possible, visually inspect those locations which are the focus of concern. If, after such meetings and inspections, City wishes to commence special tests and the thirty (30) days have elapsed without conection of the matter in controversy or unresolved complaints, the tests shall be conducted at Grantee's expense by a qualified enQineer selected by City and Grantee, and Grantee shall cooperate in such testinQ. 6. Drop Testing and Replacement. Grantee shall insert a 750 MHz carrier at a leve] lOdb below the video carr,er-s that will be measured by Grantee as a normal procedure during all service calIs. In addition, the Drops and related passive equipment will be inspected durina Installations to assure that the Drop and passive equipment can pass the full ;50 LiHz System capacity. In the erent measurement of the carrier or the inspection demonstrate that a Drop or associated passive equipment do not pass the full 750 MHz, the Subscriber address will be recorded by Grantee and Grantee shall provide City, or its designee, upon request a report indicating the addresses where Drops or associated passive equipment have failed. Grantee shall replace all failing Drops and/or associated passive equipment at the 13 f time the address upgrades service to a Ievel which requires a signal above the 550 MHz spectrum at no separate charge to the individual subscriber. 7. FCC Reports. The results of any tests required to be filed by Grantee with the FCC shall upon request of City also be filed with the City or its designee within ten (10) days of the conduct of such tests. 8. Interconnection. The System servicing the Cities of Arden Hills, Falcon Heights, Lauderdale, Little Canada, Mounds View, New Brighton, North Oaks, Roseville, St. Anthony, and Shoreview shall continue to be completely interconnected. In addition, Grantee shall make available for interconnection purposes one (1) six (6) MHz channel for forward video purposes, one (1) six (6) MHz channel for return video purposes, one (1) six (6) MHz channeI for forward data or other purposes, and one (1) six (6) MHz channel for return data or other purposes between all Systems adjacent to the North Suburban System and under common ownership with Grantee. 9. Nonvoice Return CapabilitX. Grantee is required to use cable and associated electronics having the technical capacity for nonvoice return communications. 10. Lockout Device. Upon the request of a Subscriber, Grantee shall make available a Lockout Device at no additional charge to Subscribers. SECTION 5. SERVICE PROVISIONS 1. Re,izulation of Service Rates. a. The City may regulate rates for the provision of Cable Service, equipment, or any other communications service provided over the System to the extent allowed under federal or state law(s). City reserves the right to regulate rates for any future services to the extent pernutted by law. b. Grantee shall give Ciry and Subscribers written notice of any chan~e in a rate or charge at least one billinq cycle prior to the effective date of the chan~e. Bills must be clear, concise, and understandable, with itemization of all charges. \'on-Standard Installations. Grantee shall install and provide Cable Service to any Person requesting other than a Standard Installation provided that said Cable Service can meet FCC technical specifications and all payment and policy obligations are met. In such case, Grantee may charge for the incremental increase in material and labor costs incurred beyond the Standard Installation. 14 3. Sales Procedures. Grantee shall not exercise deceptive sales procedures when marketing any of its services within City. In its initial communication or contact with a non-Subscriber and in all general solicitation materials marketing the Grantee or its services as a whole, Grantee shall inform the non-Subscriber of all levels of service available, including the lowest priced and free service tiers. Grantee shall have the right to market door-to-door during reasonable hours consistent with local ordinances and regulation. 4. Subscriber Inquirv and Complaint Procedures. a. Grantee shall have a publicly listed toll-free telephone number which shall be operated so as to receive Subscriber complaints and requests on a twenty-four (24) hour-a-day, seven (7) days-a-week, 365 days a year basis. During normal business hours, trained representatives of Grantee shall be available to respond to Subscriber inquiries. b. Grantee shall maintain adequate numbers of telephone lines and personnel to respond in a timely manner to schedule service calls and answer Subscriber complaints or inquiries in a manner consistent with regulations adopted by the FCC and Ciry where applicable and lawful. Under normal operating conditions, teiephone answer time by a customer representative, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less than ninety (90) percent of the time under normal operating conditions, measured on a quarterly basis. Under normal operating conditions, the customer will receive a busy signal less than three (3) percent of the time. Grantee shall respond to written compiaints with copy to City or its designee within thirty (30) days. c. Subject to Grantee's obligations pursuant to law regarding privacy of certain information, Grantee shall prepare and maintain written records of all complaints received from City and the resolution of such complaints, includina the date of such resolution. Such written records shall be on file at the office of Grantee. Grantee shall provide City with awritten summary of such complaints and their resolution upon request of City. As to Subscriber complaints, Grantee shall comply with FCC record-kzzpintr regulations, and make the results of such record-keepina available to City upon request. d. Subscriber requests for repairs shall be performed within thirty-six (36) hours of the request unless conditions beyond the controi of Grantee prevent such performance. Grantee may schedule appointments for Installations and other service call either at a specific time or, at a maximum, during a four hour time block during normal business hours. 15 Grantee may also schedule service calls outside normal business hours for the convenience of customers. Grantee shall use its best efforts to not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. If the installer or technician is late and will not meet the specified appointment time, he/she must use his/her best efforts to contact the customer and reschedule the appointment at the sole convenience of the customer. Service call appointments must be met in a manner consistent with FCC standards. 5. Subscriber Contracts. Grantee shall file with City any standard form Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall file with the City a document completely and concisely stating the length and terms of the Subscriber contract offered to customers. The length and terms of any Subscriber contract(s) shall be available for public inspection during normal business hours. 6. Refund Policv. In the event a Subscriber establishes or terminates service and receives less than a full month's service, Grantee shall prorate the monthly rate on the basis of the number of days in the period for which service was rendered to the number of days in the billing. 7. Late Fees. Fees for the late payment of bills shall not be assessed until after the service has been fully provided and, as of the due date of the bill notifying Subscriber of an unpaid balance, the bill remains unpaid. Late Fees may not exceed the actual costs to Grantee of late payment of bills and the servicing and collecting of such accounts. 8. Office Policv. Grantee shall maintain a location in City or the Franchise territory encompassing any joint regulatory body of which City is a Member for receiving Subscriber inquiries and bill payments. The location must be staffed by a person capable of receiving inquiries and bill payments. In addition, Grantee shall maintain a local drop bor for receiving Subscriber payments after hours. SECTION 6. ACCESS CHANNEL(S) PROVISIO~,'S 1. Public. Educational and Government Access. a. City or its desiQnee is hereby desiQnated to operate, administer, promote, and manage access (public, education, and government programming) (hereinafter "PEG access") programming on the Cable System. b. Grantee shall dedicate 12 channel(s) for PEG access and community programming use in accordance with the Proposal. All residential 16 Subscribers who receive all or any part of the total services offered on the System shall be eligible to receive such channels at no additional charge. The channel(s) shall be activated upon the effective date of this Franchise and thereafter maintained. City may rename, reprogram, or otherwise change the use of these channels in its sole discretion, provided such use is non-commercial, lawful, and retains the general purpose of the provision of community programming. Nothing herein shall diminish the City's rights to secure additional channels pursuant to Minn. Stat. § 238.084, which is expressly incorporated herein by reference. City shall provide ninety (90) days prior written notice to Grantee of City's intent to activate access channels. c. Each public and government access channel(s) required by this Section shall retain the channel designation/number it had as of the commencement of this Franchise term. Grantee may not move or otherwise change the channel number or location of any public or government access or community program channel without the written approval of the City or its designee. Upon six (6) months notice to City, any other access channel may be moved by Grantee, but in no event more than once every two (2) years unless otherwise allowed by City, provided Grantee pays all reasonable costs or expenses arising out of the channel move including, but not limited to, equipment necessary to effect the change at the programmer's production or receiving facility (school frequency routing equipment, etc.), signage, letterhead, business cards, and reasonable marketing or other constituency notification costs. In any event, those access channels carried on the universal service tier pursuant to the MOU shall remain on the universal service tier. This paragraph shall not apply to Regional Channel 6. 2. Char,ges for Use. Channel time and playback of prerecorded programming on the PEG access and community program channel(s) must be provided without charge to City and the public. 3. Access Rules. City, or its desianee, shall implement rules for use of any access channel(s). ~ 4. Access Support. Grantee shall continue to be obligated pursuant to the MOU, and shall additionally provide $667,286.00 over the term of this Franchise for the acquisition of new equipment accordinQ to the schedule in Exhibit A attached. 5. Studio Relocation. In addition to the aareement between the City and Grantee regarding the North Suburbs Access Corporation relocation pursuant to the access transfer agreement, the following shall apply: If North Suburbs Access Corporation expends, with Grantee's express written consent which may not be unreasonably withheld, over $1,000.00 to remodel or renovate its leasehold in a 17 twelve (12) month period and Grantee thereafter requires North Suburbs Access Corporation to move studio locations, Grantee shall reimburse North Suburbs Access Corporation 100 % of its expenditures if the request to move is within one (1) year of the expense of North Suburbs Access Corporation. Said reimbursement shall be decreased by 20% for each year the expense was incurred prior to the date North Suburbs Access Corporation is required to move. 6. Regional Channel6. Grantee shall designate standard VHF Channel 6 for uniform regional channel usage. 7. State and Federal Law compliance. Satisfaction of the requirements of this Section 6 satisfies any and all of Grantee's state and federal law requirements of Grantee with respect to PEG access. SECTION 7. INSTITUTIONAL NETWORK (I-NET) PROVISIONS 1. CapacitX. a. Grantee shall provide an Institutional Network with 54 channel capacity (16 upstream channels and 38 downstream channels) in the 5-450 MHz spectrum, all in accordance with the Proposal. All institutions designated on Exhibit B attached hereto and made a part hereof shall be connected to the Institutional Network along with any new City Hall which may be constructed by City or to which City may otherwise move its government offices or City Council meeting locations. Other public or educational institutions subsequently designated by City shall be connected to the Institutional Network if the designated institution is located less than five hundred (500) feet from the existing Institutional Network, or if such designated institution agrees to reimburse Grantee for Grantee's actual costs in excess of the five hundred (500) foot installation actual costs. b. All institutions designated on Exhibit B attached shall be allowed to make use of the full channel capacity for video uses at no charge. The institutions designated on Exhibit B attached may make use of three (3)-6 MHz channels downstream and three (3)-6 MHz channels upstream for non-video uses at no charge. c. Grantee shall construct and thereafter maintain fiber optics to the Institutional Network nodes which shall include two (2) fibers to transmit the fifty-four (54) channels required in subparagraph a. above, and four (4) additional fibers which are expressly for the use of the institutions listed in Exhibit B. 18 Charges to designated institutions for non-video use of the channels other than the six (6) non-video dedicated channels (three (3) upstream and three (3) downstream) on the Institutional Network required in subparagraph a. above shall be calculated based on Grantee's actual cost plus a 45 % margin or the "most favored comparable user rate", whichever is lower. Charges to the designated institutions for video or non-video use of the six (6) fibers provided to the Institutional Network nodes shall be calculated based only upon Grantee's incremental actual cost for providing the additional six (6) fibers. Use of the Institutional Network by a designated institution is limited to its own use(s) and no institution may sell Institutional Network capacity or usage to any third party, without the express written consent of Grantee. 2. Grantee's Use of CapacitX. Grantee may use available capacity on the fifty-four (54) channel Institutional Network required in Paragraph la. above for other uses including commercial uses, provided, however, that usage of seventy-five percent (75 of such capacity by designated institutions shall have priority over other uses subject to rules or policies adopted by Grantee and approved in advance by City. Further, should City determine that any portion of Grantee's use of the twenty-five percent (25 should be terminated to accomodate the use by a designated institution for video purposes, City may direct that Grantee terminate its use at the expiration of any third party use contract or three (3) years, whichever is sooner. 3. End-User Equipment. a. Designated institutions shall be generally responsible for providing their own end-user equipment. However, Grantee shall provide at no charge twenty (20) new modulators for City and/or designated institutions use of the Institutional Network, all as approved by the City. b. With respect to non-video end-user equipment, upon request by a designated institution, Grantee must either lease the equipment requested to the requesting institution or make reasonable efforts to arrange for the lease of such equipment. Within 30 days of a written request, Grantee must notify the requestina institution in writing of its ability or inability to lease the requested equipment and the terms of such lease. The City, its designee, or the requestina institution may purchase or lease the equipment from any vendor. c. In addition, Grantee will provide standby power for the Institutional Network, provide fifteen (15) new pilot generators, re-tune ten (10) existing return pilot generators, and re-tune one hundred twenty-four 124 existing return amplifiers. 19 4. Service Standards. Grantee shall maintain those technical and performance standards as are detailed in Exhibit D attached. Grantee shall provide the City, or its designee, upon request with reports of the performance of the I-Net and Grantee's compliance with the technical and performance standards. SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS 1. Administration of Franchise. The City Administrator or other designee shall have continuing regulatory jurisdiction and supervision over the System and the Grantee's operation under the Franchise. The City, or its designee, may issue such reasonable rules and regulations concerning the construction, operation and maintenance of the System as are consistent with the provisions of the Franchise and law. 2. Delegated Authoritv. The City may appoint a citizen advisory body or a Joint Powers Commission, or may delegate to any other body or Person authority to administer the Franchise and to monitor the performance of the Grantee pursuant to the Franchise. Grantee shall cooperate with any such deleaatee of City. 3. Franchise Fee. a. During the term of the Franchise, Grantee shall pay quarterly to City or its delegatee a Franchise Fee in an amount equal to five percent (5%) of its quarterly Gross Revenues, or such other amounts as are subsequently permitted by federal statute. b. Any payments due under this provision shall be payable quarterly. The payment shall be made within thirty (30) days of the end of each of Grantee's fiscal quarters together with a report showinQ the basis for the computation. c. All amounts paid shall be subject to audit and recomputation by City and acceptance of any payment shall not be construed as an accord that the amount paid is in fact the correct amount. 4. Access to Records. The City shall have the right to inspect, upon reasonable notice and during normal business hours, or require Grantee to provide within a reasonable time copies of any records maintained by Grantee which relate to System operations including specifically Grantee's accounting and financial records. 20 5. Reports and Maps to be Filed with CitX. a. Grantee shall file with the City, at the time or payment of the Franchise Fee, a report of all Gross Revenues in form and substance as required by City. b. Grantee shall prepare and furnish to City, at the times and in the form prescribed, such other reasonable reports with respect to Grantee's operations pursuant to this Franchise as City may require. c. If required by City, Grantee shall furnish to and file with City Administrator the maps, plats, and permanent records of the location and character of all facilities constructed, including underground facilities, and Grantee shall file with City updates of such maps, plats and permanent records annually if changes have been made in the System. 6. Periodic Evaluation. a. The City may require evaluation sessions at any time during the term of this Franchise, upon fifteen (15) days written notice to Grantee. b. Topics which may be discussed at any evaluation session may include, but are not limited to, applica[ion of new technologies, System performance, programming offered, access channels, facilities and support, municipal uses of cable, subscriber rates, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics City deems relevant. c. As a result of a periodic review or evaluation session, upon notification from City, Grantee shall meet with city and undznake good faith efforts to reach agreement on changes and modifications to the terms and conditions of the Franchise which are both economically and technically feasible. SECTION 9. GENERAL FINAi,;CIAL AND INSURA~tiCE PROVZSIO\S 1. Performance Bond. a. At the time the Franchise becomes effectit-e and at all times thereafrer, until the Grantee has liquidated all of its obliQations with Citv, the Grantee shall furnish a bond to City in the amount of $500,000.00 in a form and with such sureties as reasonably acceptable to City. This bond will be conditioned upon the faithful performance by the Grantee of its Franchise obligations and upon the further condition that in the event the Grantee 21 shall fail to comply with any law, ordinance or regulation governing the Franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by City as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the Grantee, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond, and further guaranteeing payment by the Grantee of claims, liens and taxes due City which arise by reason of the construction, operation, or maintenance of the System. The rights reserved by City with respect to the bond are in addition to all other rights City may have under the Franchise or any other law. City may, from year to year, in its sole discretion, reduce the amount of the bond. b. The tune for Grantee to conect any violation or liability, shall be extended by Ciry if the necessary action to correct such violation or liability is, in the sole determination of City, of such a nature or character as to require more than thirty (30) days within which to perform, provided Grantee provides written notice that it requires more than thirty (30) days to correct such violations or liability, commences the corrective action within the thirty (30) days period and thereafter uses reasonable diligence to correct the violation or liability. c. In tfie event this Franchise is revoked by reason of default of Grantee, City shall be entitled to collect from the performance bond that amount which is attributable to any damages sustained by City as a result of said default or revocation. d. Grantee shall be entitled to the return of the performance bond, or portion thereof, as remains sixty (60) days after the expiration of the term of the Franchise or revocation for default thereof, provided City has not notified Grantee of anv actual or potential damages incurred as a result of Grantee's operations pursuant to the Franchise or as a result of said default. e. The rights reserved to City with respect to the performance bond are in addition to all other rights of Ciry whether reserved by this Franchise or authorized bv la«-, and no action, proceedinQ or exercise of a riaht with respect to the performance bond shall affect any other riaht City may have. 2. Letter of Credit. a. At the time of acceptance of this Franchise, Grantee shall deliver to Ciry an irrevocable and unconditional Letter of Credit, in form and substance acceptable to City, from a National or State bank approved by City, in the amount of $25,000.00. 22 b. The Letter of Credit shall pravide that funds will be paid to City, upon written demand of City, and in an amount solely determined by City in payment for penalties charged pursuant to this Section, in payment for any monies owed by Grantee to City or any person pursuant to its obligations under this Franchise, or in payment for any damage incurred by City or any person as a result of any acts or omissions by Grantee pursuant to this Franchise. c. In addition to recovery of any monies owed by Grantee to City or any person or damages to City or any person as a result of any acts or omissions by Grantee pursuant to the Franchise, City in its sole discretion may charge to and collect from the Letter of Credit the following penalties: i. For failure to timely complete System upgrades as provided in this Franchise unless City approves the delay, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. ii. For failure to provide data, documents, reports or information or to cooperate with City during an application process or system review or as otherwise provided herein, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. iii. Fifteen (15) days following notice from City of a failure of Grantee to comply with construction, operation or maintenance standards, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. iv. For failure to provide the services Grantee has proposed, including, but not limited to, the implementation and the utilization of the access channels and the maintenance and/or replacement of the equipment and other facilities, the penalty shall be 5500.00 per day for each day, or part thereof, such failure occurs or continues. v. For Grantee's breach of any written contract or aQreement with or to the City or its designee, the penalty shall be SSOO.OQ per day for each day, or part thereof, such breach occurs or continues. vi. For failure to comply with any of the provisions of this Franchise, or other City ordinance for which a penalt}° is not otherwise specifically provided pursuant to this paragraph c, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. 23 d. Each violation of any provision of this Franchise shall be considered a separate violation for which a separate penalty can be imposed. e. Whenever City finds that Grantee has violated one or more terms, conditions or provisions of this Franchise, or for any other violation contemplated in Subparagraph c. above, a written notice shall be given to Grantee informing it of such violation. At any time after thirty (30) days (or such longer reasonable time which, in the sole determination of City, is necessary to cure the alleged violation) following local receipt of notice, provided Grantee remains in violation of one or more terms, conditions or provisions of this Franchise, in the sole opinion of City, City may draw from the Letter of Credit all penalties and other monies due City from the date of the local receipt of notice. f. Whenever the Letter of Credit is drawn upon, Grantee may, within seven (7) days of such draw, notify City in writing that there is a dispute as to whether a violation or failure has in fact occurred. Such written notice by Grantee to City shall specify with particularity the matters disputed by Grantee. All penalties shall continue to accrue and City may continue to draw from the Letter of Credit during any appeal pursuant to this subparagraph f. i. Ciry shall hear Grantee's dispute within sixty (60) days and render a final decision within sixty (60) days thereafter. ii. Upon the determination of City that no violation has taken place, City shall refund to Grantee, without interest, all monies drawn from the Letter of Credit by reason of the alleged violation. g. If said Letter of Credit or any subsequent Letter of Credit delivered pursuant thereto expires prior to thirty (30) months after the expiration of the term of this Franchise, it shall be renewed or replaced durinQ tYie term of this Franchise to provide that it will not expire earlier than thirry (30) months after the expiration of this Franchise. The renewed or replaced Letter of Credit shall be of the same form and with a bank authorized herein and for the full amount stated in Paraaraph A of this Section. h. If City draws upon the I.ettzr of Credit or any subsequent I.etter of Credit delivered pursuant hereto, in whole or in part, Grantee shail rzplace or replenish to its fuli amount the same within ten (10) da}•s and shall deliver to City a like replacement Letter of Credit or certification of replenishment for the full amount stated in Section 9.2 (a) as a substitution of the previous Letter of Credit. This shall be a continuing obligation for any draws upon the Letter of Credit. 24 i. If any Letter of Credit is not so replaced or replenished, City may draw on said Letter of Credit for the whole amount thereof and use the proceeds as City determines in its sole discretion. The failure to replace or replenish any Letter of Credit may also, at the option of the City, be deemed a default by Grantee under this Franchise. The drawing on the Letter of Credit by City, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. j. The collection by City of any damages, monies or penalties from the Letter of Credit shall not affect any other right or remedy available to City, nor shall any act, or failure to act, by City pursuant to the Letter of Credit, be deemed a waiver of any right of City pursuant to this Franchise or otherwise. 3. Indemnification of CitX. a. City, its officers, boards, committees, commissions, elected officials, employees and agents shall not be liable for any loss or damage to any real or personal property of any Person, or for any injury to or death of any Person, arising out of or in connection with Grantee's construction, operation, maintenance, repair or removal of the System or as to any other action of Grantee with respect to this Franchise. b. Grantee shall indemnify, defend, and hold harmless City, its officers, boards, committees, commissions, elected officials, employees and agents, from and against all liability, damages, and penalties which they may legally be required to pay as a result of the City's exercise, administration, or enforcement of the Franchise. c. NothinQ in this Franchise relieves a Person, except City, from liability arisinQ out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while performing work connected with grading, regardina, or chanaino the line of a Riaht-of-Way or public place or with the construction or reconstruction of a sewer or water system. 4. Insurance. a. As a part of the indemnification provided in Section 8.3, but without limit'hzQ the foreaoina, Grantee shall file with CiR- at the time of its acceptance of this Franchise, and at all times thereafter maintain in full force and effect at its sole expense, a comprehensive general liability insurance policy, including broadcaster's/cablecaster's liability and contractual liability coverage, in protection of the Grantee, and the City, its officers, elected officials, boards, commissions, agents and employees 25 for any and all damages and penalties which may arise as a result of this Franchise. The policy or policies shall name the City as an additional insured, and in their capacity as such, City officers, elected officials, boards, commissions, agents and employees. b. The policies of insurance shall be in the sum of not less than $1,000,000.00 for personal injury or death of any one Person, and $2,000,000.00 for personal injury or death of two or more Persons in any one occunence, $500,000.00 for property damage to any one person and $2,000,000.00 for property damage resulting from any one act or occurrence. c. The policy or policies of insurance shall be maintained by Grantee in full force and effect during the entire term of the Franchise. Each policy of insurance shall contain a statement on its face that the insurer will not cancel the policy or fail to renew the policy, whether for nonpayment of premium, or otherwise, and whether at the request of Grantee or for other reasons, except after sixty (60) days advance written notice have been provided to City. SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE 1. City's Right to Revoke. a. In addition to all other rights which Ciry has pursuant to law or equity, City reserves the right to commence proceedings to revoke, terminate or cancel this Franchise, and all rights and privileges pertaining thereto, if it is determined by City that: i. Grantee has violated material provisions(s) of this Franchise; or ii. Grantee has attempted to evade any of the provisions of the Franchise: or iii. Grantee has practiced fraud or deceit upon City. City may revoke this Franchise without the hearina required by 9.2(b) herein if Grantez is adjudQed a bankrupt. y 2. Procedures for Revocation. a. City shall provide Grantee with written notice of a cause for revocation and the intent to revoke and shall allow Grantee thirty (30) days subsequent to receipt of the notice in which to correct the violation or to provide adequate 26 assurance of performance in compliance with the Franchise. In the notice required herein, City shall provide Grantee with the basis of the revocation. b. Grantee shall be provided the right to a public hearing affording due process before the City Council prior to the effective date of revocation, which public hearing shall follow the thirty (30) day notice provided in subparagraph (a) above. City shall provide Grantee with written notice of its decision together with written findings of fact supplementing said decision. c. Only after the public hearing and upon written notice of the determination by City to revoke the Franchise may Grantee appeal said decision with an appropriate state or federal court or agency. d. During the appeal period, the Franchise shall remain in full force and effect unless the term thereof sooner expires or unless continuation of the Franchise would endanger the health, safety and welfare of any person or the public. 3. Abandonment of Service. Grantee may not abandon the System or any portion thereof without having first given three (3) months written notice to City. Grantee may not abandon the System or any portion thereof without compensating City for damages resulting from the abandonment, including all costs incident to removal of the System. 4. Removal After Abandonment. Termination or Forfeiture. a. In the event of termination or forfeiture of the Franchise or abandonment of the System, City shall have the riaht to require Grantee to remove all or any portion of the System from all Rights-of-Way and public property within City. b. If Grantee has failed to commence removal of System, or such part thereof as was desiQnated by City, within thirty (30) days afrer written notice of City's demand for removal is Qiven, or if Grantee has failed to complete such removal within twelve (12) months after written notice of City's demand for removal is given, City shall have the riaht to apply funds secured by the Letter of Credit and Performance Bond toward removal and/or declare all right, title, and interest to the S~~stem t~i be in City with all riahts of ownership including, but not limited to, the right to operate the System or transfer the System to another for operation by it. 27 5. Sale or Transier of Franchise. a. No sale or transfer of the Franchise, or sale, transfer, or fundamental corporate change of or in Grantee, including, but not limited to, a fundamental corporate change in Grantee's parent corporation or any entity having a controlling interest in Grantee, the sale of a controlling interest in the Grantee's assets, a merger including the merger of a subsidiary and parent entity, consolidation, or the creation of a subsidiary or affiliate entity, shall take place until a written request has been filed with City requesting approval of the sale, transfer, or corporate change and such approval has been granted or deemed granted, provided, however, that said approval shall not be required where Grantee grants a security interest in its Franchise and/or assets to secure an indebtedness. b. Any sale, transfer, exchange or assignment of stock in Grantee, or Grantee's parent corporation or any other entity having a controlling interest in Grantee, so as to create a new controlling interest therein, shall be subject to the requirements of this Section 10.5. The term "controlling interest" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. In any event, as used herein, a new "controlling interest" shall be deemed to be created upon the acquisition through any transaction or group of transactions of a legal or beneficial interest of fifteen percent (15%) or more by one Person. Acquistion by one Person of an interest of five percent (5 or more in a single transaction shall require notice to City. c. The Grantee shall file, in addition to all documents, forms and information required to be filed by applicable law, the following: 1. All contracts, a;reements or other documents that constitute the proposed transaction and all exhibits, attachments, or other documents referred to therein which are necessary in order to understand the terms thereof. 2. A list detailinQ all documents filed with any state or federal aaency related to the transaction including, but not limited to, the MPUC, the FCC, the FTC, the FEC, the SEC or MnDOT. Upon request, Grantee shall provide Ciry with a complete copy of any such document: and 3. Any other documents or information related to the transaction as may be specifically requested by the City. d. City shall have such time as is permitted by federal law in which to review a transfer request. 28 e. The Grantee shall reimburse City for all the legal, administrative, and consulting costs and fees associated with the City's review of any request to transfer. Nothing herein shall prevent Grantee from negotiating partial or complete payment of such costs and fees by the transferee. Grantee may not itemize any such reimbursement on Subscriber bills, but may recover such expenses in its subscriber rates. f. In no event shall a sale, transfer, corporate change, or assignment of ownership or control pursuant to subparagraph (a) or (b) of this Section be approved without the transferee becoming a signatory to this Franchise and assuming all rights and obligations thereunder, and assuming all other rights and obligations of the transferor to the City including, but not limited to, any adequate guarantees or other security instruments provided by the transferor. g. In the event of any proposed sale, transfer, corporate change, or assignment pursuant to subparagraph (a) or (b) of this Section, City shall have the right to purchase the System for the value of the consideration proposea in such transaction. City's right to purchase shall arise upon City's receipt of notice of the material terms of an offer or proposal for sale, transfer, corporate change, or assignment, which Grantee has accepted. Notice of such offer or proposal must be conveyed to City in writing and separate from any general announcement of the transaction. h. City shall be deemed to have waived its right to purchase the System pursuant to this Section only in the following circumstances: i. If City does not indicate to Grantee in writing, within sixty (60) days of receipt of written notice of a proposed sale, transfer, corporate change, or assignment as contemplated in Section 10.5 (g) above, its intention to exercise its right of purchase; or ii. It approves the assignment or sale of the Franchise as provided within this Section. i. No Franchise may be transferred if City determines Grantee is in noncompliance of the Franchise unless an acceptable compliance program has been approved by Ciry. The approval of any transfer of ownership pursuant to this Section sha11 not be deemed to waive anv riahts of City to subsequenth• enforce noncompliance issues relatinQ to this Franchise even if such issues predated the approval, whether known or unknown to City. 29 SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS 1. Discriminatorv Practices Prohibited. Grantee shall not deny service, deny access, or otherwise discriminate against Subscribers or general citizens on the basis of race, color, religion, national origin, sex, age, status as to public assistance, affectional preference, or disability. Grantee shall comply at all times with all other applicable federal, state, and city laws, and all executive and administrative orders relating to nondiscrimination. 2. Subscriber Privacv. a. No signals including signals of a Class IV Channel may be transmitted from a Subscriber terminal for purposes of monitoring individual viewing patterns or practices without the express written permission of the Subscriber. Such written permission shall be for a limited period of time not to exceed one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such authorization. The authorization shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. Such permission shall be required for each type or classification of Class IV Channel activity planned for the purpose of monitoring individual viewing patterns or practices. b. No lists of the names and addresses of Subscribers or any lists that identify the viewing habits of Subscribers shall be sold or otherwise made available to any party other than to Grantee or its agents for Grantee's service business use or to City for the purpose of Franchise administration, and also to the Subscriber subject of that information, unless Grantee has received specific written authorization from the Subscriber to make such data available. Such written permission shall be for a limited period of time not to exceed one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such authorization. The authorization shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. c. Written permission from the Subscriber shall not be required for the conducting of System wide or individually addressed electronic sweeps for the purpose of verifyinQ System integriry or monitorina for the purpose of billing. Confidentiality of such information shally be subject to the provision set forth in subparagraph (b) of this Section. 30 SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS 1. Unauthorized Connections or Modifications Prohibited. It shall be unlawful for any firm, Person, group, company, corporation, or governmental body or agency, without the express consent of the Grantee, to make or possess, or assist anybody in making or possessing, any unauthorized connection, extension, or division, whether physically, acoustically, inductively, electronically or otherwise, with or to any segment of the System or receive services of the System without Grantee's authorization. 2. Removal or Destruction Prohibited. It shall be unlawful for any firm, Person, group, company, or corporation to willfully interfere, tamper, remove, obstruct, or damage, or assist thereof, any part or segment of the System for any purpose whatsoever, except for any rights City may have pursuant to this Franchise or its police powers. 3. Pealtv. Any firm, Person, group, company, or corporation found guilty of violating this section may be fined not less than Twenty Dollars ($20.00) and the costs of the action nor more than Five Hundred Dollars ($500.00) and the costs of the action for each and every subsequent offense. Each continuing day of the violation shall be considered a separate occurrence. SECTION 13. MISCELLANEOUS PROVISIONS 1. Franchise Renewal. Any renewal of this Franchise shall be performed in accordance with applicable federal, state and local laws and regulations. The term of any renewed Franchise shall be limited to a period not to exceed fifteen (15) years. 2. Work Performed bv Others. All applicable obligations of this Fzanchise shall apply to any subcontractor or others performing any work or ser~-ices pursuant to the provisions of this Franchise, however, in no event shall any such subcontractor or other performina work obtain any rights to maintain and operate a System ar provide Cable Service. Grantee shall provide notice to City of the name(s) and address(es) of an~l entity, other than Grantee, which performs substantial services pursuant to this Franchise. 3. Amendment of Franchise Ordinance. Grantee and City may aaree, from time to time, to amend this Franchise. Such written amendments may be made subsequent to a review session pursuant to Section 7.5 or at any other time if City and Grantee agree that such an amendment will be in the public interest or if such an 31 amendment is required due to changes in federal, state or local laws. Provided, however, nothing herein shall restrict City's exercise of its police powers or City's authority to unilaterally amend Franchise provisions to the extent permitted by law. 4. Compliance with Federal. State and Local Laws. a. If any federal or state law or regulation shall require or permit City or Grantee to perform any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, either party shall notify the other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state laws and rules regarding cable communications not later than one year after they become effective, unless otherwise stated, and to conform to federal laws and regulations regarding cable as they become effective. b. 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 or provision to Persons or circumstances other than those as to whom it sha11 be held invalid or unenforceable 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 complied with provided the loss of the invalid or unenforceable clause does not substantially alter the agreement between the parties. In the event such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the provision which had been held invalid or modified is no longer in conflict with the law, rules and regulations then in effect, said provision shall thereupon return to full force and effect and shall thereafter be binding on Grantee and City. 5. Nonenforcement b,Y Cirv. Grantee shall not be relieved of its obliQations to comply with any of the provisions of this Franchise by reason of any failure or delay of City to enforce prompt compliance. City may only waive its ri(yhts hereunder by expressly so statinQ in writing. Any such written waiver by City of a breach or violation of any provision of this Franchise shall not operate as or be construed to be a waiver of any subsequent breach or violation. 6. Riahts Cumulative. All riahts and remedies aiven to City by this Franchise or retained by Cit), herein shall be in addition to and cumulative with any and all other riahts and remedies, existina or implied, now or hereafter available to City, at law or in equiry, 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 32 or remedies sha11 not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. 7. Grantee Acknowledgment of Validitv of Franchise. Grantee acknowledges that it has had an opportunity to review the terms and conditions of this Franchise and that under current law Grantee believes that said terms and conditions are not unreasonable or arbitrary, and that Grantee believes City has the power to make the terms and conditions contained in this Franchise. SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS l. Publication: Effective Date. This Franchise shall be published in accordance with applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of acceptance by Grantee in accordance with the provisions of Section 14.2. 2. Acceptance. a. Grantee shall accept this Franchise within sixty (60) of its enactment by the City Council, unless the time for acceptance is extended by City. Such acceptance by the Grantee shall be deemed the grant of this Franchise for all purposes provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied with and all applicable timelines have run for the adoption of a City ordinance. In the event acceptance does not take place, or should all ordinance adoption procedures and timelines not be completed, this Franchise and any and all rights granted hereunder to Grantee shall be null and void. b. Upon acceptance of this Franchise, Grantee and City shall be bound by all the terms and conditions contained herein. c. Grantee shall accept this Franchise in the following manner: i. This Franchise will be properly executed and acknowledQed by Grantee and delivered to City. ~ ii. With its acceptance, Grantee shall also deliver anv arant payments, performance bond and insurance certificates required hzrein that have not previously been delivered. 33 Passed and adopted this Ol9'O day of 4;e ATTE ST: CITY LS By: By: Tts: I s: ACCEPTED: This Franchise is accepted and Ive agree to be bound by its terms and conditions. Dated: By: Its : C:1C AB LE\N SCCCC\A RDEN HIL. FRN 34 EXHIBIT A OaMeredith Kevin C. Griffin ' TWW.Cable President 8. Generai Manager , 934 Woodhill Drive (Fax) 612/483-9184 Roseville, MN 55113 Customer Service: 612/483-9999 Administration: 612/483-3233 August 4, 1997 Ms. Cor Wilson, Executive Director North Suburban Cable Communications Commission 950 Woodhill Drive Roseville, Minnesota 55113 Re: North Suburban Cable Communications Franchise Renewal Dear Cor: Attached please find an updated and revised Renewal Proposal per your request. We have made an attempt to identify everything that has been agreed to between us. Should there be any confusion please refer to my memorandum of July 31, 1997 to Mr. Creighton. As we have discussed, any aareements or offers reaardin; clarifications or modifications of our May 13, 1997 proposal have been made in the spirit and context of an entire "package" of understandings. Accordin~ly, chan~es in any one component could result in a need to change other components. Please feel free to contact me with any questions or for further clarification. Si?in ly, K . Griff in ' cc: Thomas D. Creiahton Randall Coleman Kathi Donnelly-Cohen John Gibbs Trudi McCollum Foushee EXHIBIT A - Continued Renewal Proposal - Investment for the Future Meredith Cable proposes to meet the needs of the North Suburbs with this investment plan for the future wllich will thoroughly revitalize and modernize the system. This plan includes a franchise commitment to develop the system to 750 MHZ capacity. This plan will result in higher quality signals, expanded channel capacity and the opportunity to launch new programming services. In addition, Meredith Cable proposes to upgrade the existing Institutional Network and incorporate fiber into the system to facilitate future expansion of the Institutionai Network. Meredith Cable also proposes a renewal of our commitment to support of local access programming and the establishment of capability to enable the development of future high speed data transmission services and other future services. This proposal represents an ag;ressive effort to respond to identified community needs and interests, taking into account the cost of ineeting those needs and interests over the requested fifteen (15) year renewa] time frame. The specifics of the proposal are set forth below: A SUBSCRIBER SYSTEM UPGRADE DESIGN AND CONSTRUCTION Meredith Cable will commit in a renewal franchise that the subscriber system servin~ the North Suburbs will be enhanced from the current 450 MHZ, 65 channel system to a state-of-the-art 750 MHZ system offering dramatically more channel capacity, hiaher signal quality, more reliability and more features as set forth below: ~ A- l. The subscriber network will be 750 MHZ capacity. Meredith plans to initially program 81 downstream channels upon activation - with phased activation launches as nodes are completed. This leaves an additional 200 iNEiZ capacity available for future activation of additional video channels, dijital services, and other services as future marketplace needs dictate. In addition, the system will be desic'ned with the capability to transmit return signals upstream at 5- 40 NIHZ in the future as commercial need dictates and with mutually acceptable franchise langua;e that establishes a mechanism for discussions reQarding activation of the return. • A- 2. Hybrid fiber-coaxial architecture will be deployed. • A- 3. Initially, the system will be developed w-ith approMimately Forty (40) pockets which . are called "nodes", each connected by optical fiber and serving approaimately Two Thousand (2000) homes with a minimum 16 fiber count. The fiber optic nodes will be desiQned to be capable of miQrating ta five hundred (500) home nodes with a minimum 4 fiber count as marketplace need dictates. • A- 4. :U power supplies will be equipped with standby power capability which, at a minimum, will be initially activated at the node locations. • A-5. In order to better assure reliability and system maintenance, the system will EXHIBIT A - Continued incorporate status monitoring at nodes and strate;ic locations. . • A- 6. Non-interruptible power-passing compatible taps are planned for ease of maintenance and less disruption during system maintenance. • A- 7. Adequate fiber count, a minimum of 16 per initial 2,000 home node, will be included in order to facilitate future expansion of needs includin; future expansion of needs in business corridors as commercial need dictates. • A- 8. The subscriber RF system will accommodate and be capable of providing return signals in 5- 40 N1HZ bandwidth in the future. Such return capacity will he activated as commercial and marketplace need dictates and with mutually acceptable franchise lan;ua;e that establishes a mechanism for discussions regardin~ the activation of the return. • A- 9. All existin~ head end equipment will be replaced with state-of-the-art standard . frequency head end equipment. • . A- 10. Basic Service channel mapping will no longer be utilized by the system, thereby permitting all local VHF off-air broadcast signals to be located "on-channel" for all customers and with no impact on the PEG channel location on Universal Service. • A- 11. Standby power will continue to be in place for the head end. • A- 12. The system will have the capability to receive and pass through all local broadcast si~nals in digital format as required by applicable federal rules and re~ulations and in compiiance with applicabie FCC mandated time tines. • A- 13. The system will permit ail channels available to Meredith Cable in stereo to be passed throu~h in stereo. ~ A- 14. Meredith Cable w711 commence application for licenses and pemuts related to construction within 90 days afrer the commencement of the renewal period. • A- 15. Meredith Cable will commence desian, walkout, etc. related to construction within 90 days after commencement of the renewal period. • A- 16. Meredith Cable proposes to enter into a franchise timetable to complete the . project by Noverriber 30, 2000 a^d :.zll aggressively work to substantially complete construction by November 30; 1999_ tSeredith Cable Nvill carefully map and report any underground plant that may be abandoned. Stand alone abandoned aerial cable will be removed. 2 EXHIBIT A - Continued ~ A- 17. Meredith Cable proposes that interconnection between commonly owned, adjacent franchised systems in the Twin Cities marketplace can be accommodated by making available one (1) 6 MHZ channel for forward video purposes, one (1) 6 MHZ channel for return video purposes, one (1) 6 MHZ channel for forward data and /or other purposes, and one (1) 6 MHZ channel for return data and/or other purposes. Actual interconnection with other franchise areas will be subject to technical capability of those systems and those franchise areas entering into similar renewal agreements containing similar provisions. • A- 18. Meredith Cable plans to have a 750 MHZ carrier inserted at a level l Odb below the video carriers that will be measured as a normal procedure during service calls. The drop cable and passives will be inspected during normal installations to assure that 750 MHZ can be passed. Should a drop or associated passive equipment not pass the full 750 MHZ, the address will be noted and at the time the address upgrades service that requires signal above 550 MHZ, the drop and/or associated equipment will be changed out. B. INSTITUTIONAL NETWORK Meredith Cable proposes to meet the needs of institutions and users by upgradin~ the existin~ Institutional Network, including fiber capacity in the system to facilitate future Institutional Network enhancements, and with mutually acceptable franchise langua~e relating to technical and performance standards for the Institutional Network. This plan will offer flexibility and alternatives to local governments, public school districts, private schools, hijher educational institutions, libraries and the social service community for the delivery and exchange of video and telecommunications services. Specifically, Meredith Cable proposes to make the following franchise commitments: • B- 1. Frequency spectrum (includina upstream and downstream); 5 - 450 MHZ. • B- 2. Channel capacity of 54 channels (16 upstream and 38 downstream). • B -3. 15 additional pilot generators. • B- 4. Re-tunincly of 10 esistinQ pilot Qenerators. • B- 5. Re-tunina of 124 existino, amplifiers. a B -6. Provision of 20 additional modulators or de-modulators. • B- 7_ Standby power with full batterv placement. • B- S. Four (4) count shadow fiber placed along that part of the subscriber network that parallels the Institutional Network. ~ EXHIBIT A - Continued • B- 9. Meredith Cable will make the I-Net available to the designated institutions for video uses at no charge. • B- 10. Meredith Cable will make three (3) 6 MHz channels available downstream and three (6) MHz channels available upstream, for non-video uses at no charge. • B- 11. Meredith Cable will charge designated institutions for all non-video uses beyond B- 10. mentioned above at a rate calculated based on the Company's actual cost plus a 45% margin or "most favored comparable user" rate, whichever is lower. • B- 12. Nothing contained herein shall prevent Meredith Cable from using available capacity for other uses except that desi;nated institutions shall have priority over other uses subject to rules or policies adopted by Meredith Cable after consultation with the Commission. • B- 13. Use of the I-Net by the Cable Commission, cities or dele~ated institutions will be iimited to their own uses and no institution may sell any service to any third party. • B- 14. Meredith Cable will either allow designated institutions to purchase their own ec{uipment or will lease end-user terminal equipment to requesting institutions. • B- 15. Meredith Cable will provide and maintain I-Net equipment for the Commission, member cities and designated institutions on a cost recovery basis. C. PROGRAMMING Upon completion and activation by territory, Meredith will pro~ram a minimum of 81 analog video channels. While definitive programming agreements have not been entered into and, as such, specific packaging, tierinc, and pricino, decisions cannot be made at this time, it is anticipated that prices will be adjusted as authorized to reflect the additional programmina as well as project and programming, costs. As examples, we preliminarily anticipate the followin~ new programnung choices or similar services will be available: • C- 1. Basic Service (or equivalent) - Initially, Meredith Cable anticipates a continuation of current Basic Service offerinc, of 28 channeis without a realiQnment of channels wqthin Universal Service. y • C- 2. Preferred Tier Service (or equivalent) - Meredith Cable anticipates the addition of 4 or 5 channels to this tier that currently consists of 29 channels. There will be a corresponding rate adjustment. Preliminarily, and as examples, we anticipate the likely addition of the following exciting new offerings or others as we may deem more responsive to subscriber or marketplace needs and interests.: 4 EXHIBIT A - Continued • The Golf Chlnnel- The Golf Channel is the premier network devoted to the sport of golf providing more live golf coverage than all other networks combined. Tournaments include coverage from the PGA Tour, Senior PGA Tour, riIKE Tour, LPGA, Australian and PGA European Tour. Original live pro;ramming on The Golf Channel includes a weekly live call-in show, Golf Talk Live, and a nightly golf news show, Golf Central. The service also provides instructional programs such as The Golf Channel Academy. • The Clrtoon Network - Featuring the world's largest cartoon library, the Cartoon Network features all-animated cartoon programming at any time of the day or night. For cartoon lovers of all ages, this network offers 8,500 animated programs from the Hanna-Barbara libraries including The Jetsons, The F(intstones and many more. ~ Classic Sports Network - The first 24-hour, all sports television hall of fame, featurin~ the world's lar;est library of rare and exclusive pro~rammin~ from professional, amateur, college sports and the Olympic Games. ~ TV Food Channel - Helps cable television viewers learn new recipes and cookin~ techniques, `spice' up family meals, learn the latest in healthier cuisine and explore fine restaurants nationwide. Hosts include world-class chefs, restaurateurs, mothers who work outside the home and celebrities. • Sneak Prevue - Sneak Prevue is the channel cable customers turn to 24 hours a day, for the most up-to-date information on programming available for order on a Pay-Per-View basis.. The service includes video clips of Pay-Per-View movies and events along with complete orderinor information. • C- 3. New Product Tier Service - Nleredith Cable anticipates the addition of 4 or 5 channels to a new, separately priced tier of sen•ice. Preliminarily, and as examples, we anticipate the Iikely addition of the foIlowing excitin~ new offerin~s or others as we may deem more responsive to subscriber or marketplace needs and interests.: • Independent Film Channel - The first network dedicated to independent film, showcasing feature-lencrth premieres, domestic and international films, documentaries, shorts, animation, new works, and masters. All movies are shown un-cut and without commercials, 24 hours a day. • FX Movies - Twenty four hours per day; un-cut and commercial free, FX Movies brinas the vast Fox film library to cable television. • TV L1iid - America's favorite classic television shows are brought back to 5 EXHIBIT A - Continued television. A companion station to Nick at Ni~ht, TV Land eYpands into all areas of classic television, comedies, dramas, variety shows, and even classic commercials. • Turner Classic Movies - The world's greatest collection of classic movies 24 hour,s a day, with no commercial interruptions. • CNN SI - The 24 hour sports news network from CNN and Sports Illustrated. Seven days a week CNN SI is a 24 hour network offerino, coverage of sports news unlike any other service. CiNN SI utilizes the news aatherinc, resources of CNN and in-depth reporting expertise of Sports Illustrated and provides sports viewers the most complete on-demand coverage available anywhere. • C- 4. Premium Services - Meredith Cable will ad several new optional premium service selections. Preliminarily, and as examples, we anticipate the likely addition of the followin~ new premium offerin~s or others as we may deem more responsive to subscriber or marketplace needs and interests: ~ HBO 3- With NIultichannel; HBO featuring HBO 2 and HBO 3, you always have three HBO programs to choose from. A Hollywood hit, maybe an HBO Ori;inal that everyone's talking about or something li;ht like HBO Comedy Hour. The choice..and convenience...is yours! • HBO Family - HBO Family is a new HBO channel designed especially for a . family to watch together. With HBO Family's daily programming blocks, HBO Kids Block, the HBO Family Feature Block and Grown Ups Block, you always l:now just what kind of programs are on any time. Your family will love our family! ~ Showtime 3- VVith Nlultichannel Show~time featurinc, Showtime 2 and Show-time 3 you'll see the bic-est Holl,vwood hits, excitina Showtime Oriainal Pictures, featurinor the hottest stars and stories - sexy thrillers, sci-fi, ~,Tational Lampoon comedy and high profile dramas. Multichannel convenience means you'll always find the program to match your mood! • C- 5. Pav-Per-View Services - NTeredith Cable will offer more optional pay-per-view service selections. Preliminarily, and as eYamples, we anticipate the likely addition of the followiner three new pay-per-view services or others as we may deem more responsive to subscriber marketplace needs and interests: • Viewer's Choice 3- featuring "movie- of-the- day" schedules allowing customers to see the bigaest hits as soon as they become available. 6 . . EXHIBIT A - Continued • Viewer's Choice 4- similar to Viewer's Choice 3 but featuring yet another movie option. • Viewer's Choice 5- similar to above featurin; yet another movie option. • C- 6. Interactive Services - Meredith Cable's plan contemplates the capability of offerin; interactive services upon completion of the project and a reasonable expectation of consumer acceptance and financial viability. While various services are currently developing, Meredith Cable is considering, among other services, a digital music service and interactive program guide. No decisions have been made regardinc, particular services, pricing or launch dates. • C- 7. Diaitat Services - Meredith Cab(e anticipates that additional premium service options, pay-per-view offerings and other new services includincr future dicrital services will be offered over time utilizing the appropriate bandwidth. D HIGH SPEED DATA TRANSMISSION In addition to traditional video services, the cable system will position Meredith Cable to offer new and yet-to-be-developed non-video services. • D- 1. The subscriber network will have adequate capability to enable the provision of hi~h speed data service such as Internet access as marketplace need dictates. • D- 2. Meredith Cable's system will be ab]e to address opportunities to meet the non- video interests of the business community by including fiber capacity through business . conidors identified durina the construction walkout in order to explore hiorh speed data services demand by business users. E COMA'IITMENT TO ACCESS PROGRAMMiYG Meredith Cable proposes to meet and exceed the a~reements reDardin~ access support which were entered into with the North Suburban Cable Communications Commission in the November 3, 1994 Memorandum of LTnderstandincr. Specifically Meredith Cable proposes the following support for local access proQramming: • E- 1. Nleredith Cable aorrees to maintain the number of access channels (12) as currently exist and accept the concept of having the current channel loan aareements extended for the nfreen (1-5) year renewal term and that the Commission will retain control over the entire 6'TNIIHZ spectrum that equals one channel.. • E- 2. Meredith Cable aarees that the Commission can, on its own, change the name of required PEG channels, provided that Meredith is indemnified from any claims as a result 7 EXHIBIT A - Continued of such action by the Commission. • E- 3. Meredith Cable proposes that the PEG support components of the Memorandum of Understanding remain intact. Rather than the PEG support fee set forth in the May 13, 1997 original proposal, Meredith proposes a PEG fee based on the following: a new commitment to provide the Commission a total of $667,286 for the franchise term for acquisition of new equipment as follows and to be assessed as part of the PEG Fee; the $50,000 Equipment Replacement Grant, per the MOU; the appropriate amount for the Operating Grant, per the MOU; the appropriate amount for Universal Service, per the MOU; and the appropriate amount for the Scholarship Grant (which may be used for other purposes at the Commission's discretion), per the MOU: New Equipment Acquisition Grants Year Amount 1 $ 40,000 2 $ 40,600 ; $ 41,209 4 $ 41, 827 5 $ 42,455 6 S43,091 7 S 43,738 8 $ 44,394 9 S45,060 10 S45,736 11 S46,422 12 S 47,118 13 S47,825 14 S48,542 15 S49,270 E- 4. Should Meredith Cable request the relocation of the CTV studio, imeredith agrees that the current aareements governing CTV relocation will remain intact. Meredith does not waive any riahts it may have with respect to the ability to recover any such costs should a move occur. 8 EXHIBIT B North Suburban Area Institutional Connections ~ity of Arden Hills Inst. Name Street Address City Phone I-Net Sub Arden Hills City Hall 4364 W. Round Lk. Rd. (Temp.) Arden Hills 636-5676 X X Arden Hills Public Works 1460 W. Hwy. 96 Arden Hills 636-5676 Y X Util.- Booster 1230Red Fox Road Arden Hills Y Util.- Lift #1 3196 North Cleveland Arden Hills Y Util.- Lift #10 3804 North Cleveland Arden Hills Y Util.- Lift #11 1901 Highway 96 Arden Hills Y Util.- Lift #12 1965 Thom Drive Arden Hills Y Util.- Lift #13 1123 Karth Lake Drive Arden Hills Y Util.- Lift #14 Hwy 96, (MN Nat. Guard) Arden Hills Y Util.- Lift #2 1850 Co. Rd. E2 Arden Hills Y Jtil.- Lift #3 1578 Lake Johanna Blvd. Arden Hills Y Util.- Lift #4 3484 Ridgewood Road Arden Hiils Y Util.- Lift #5 3495 Lake Johanna Blvd. Arden Hills Y Util.- Lift #6 3328 Lake Johanna Blvd. Arden Hills Y Util.- Lift #7 3230 Lake Johanna Blvd. Arden Hills Y Util.- Lift #8 1335 Ingerson Road Arden Hills Y Util.- Lift #9 3168 Ridgewood Road Arden Hills Y Util.- Roseville Station Y City of Falcon Heights Inst. Name Street Address City Phone I-Net Sub Falcon Heights City Hall 2077 W. Larpenteur Ave. Falcon Heights 644-5050 X X Falcon Heights Community Bldg. 2050 W. Roselawn Ave. Falcon Heights 645-2712 N Y Falcon Heights Fire Station 2077 W. Larpenteur Ave. Falcon Heights 644-5575 X X Ciry of Lauderdale tnst. Name Street Address City Phone I-Net Sub Lauderdale City Hall F1891 Walnut St. Lauderdale 631-0300 X X • ' EXHIBIT B - Contiriued Nor.th Suburban Area lnstitutional Connections Page 2 Inst. Name Street Address City Phone I-Net Sub ;ity of Little Canada Inst. Name Street Address City Phone I-Net Sub City Garage 3100 Country Drive Little Canada Y Y Ice Rink 430 Littfe Canada Road Littie Canada Y Ice Rink 100 E. Demont Little Canada Y Little Canada City Hall 515 E. Little Canada Rd. Little Canada 484-2177 X X Little Canada Fire Station 325 Little Canada Rd. Little Canada 871-5503 X X Old Little Canada Fire Station 440 E. Little Canada Rd. Little Canada 871-5503 X X Shelter 350 Eli Road Little Canada Y Shelter 2950 Centerville Little Canada Y Util.- Booster Station 141 Co. Rd. B Little Canada Y Util.- Lift Station 672 Co. Rd. B Little Canada Y Util.- Lift Station 2537 Keller Parkway Little Canada Y Util.- Lift Station 99 Co Rd. B Little Canada Y Util.- Lift Station 2458 Dianna Lane Little Canada Y Util.- Lift Station 2707 Jessica Court Little Canada Y Util.- Lift Station 1002 Co. Rd. D Little Canada Y Util.- Lift Station 216 Co. Rd. B-2 E. Little Canada Y Util.- Water Meter Station 5 Roselawn Little Canada Y Util.- Water Tower 517 Little Canada Road Little Canada iryTi City of Mounds View Inst. Name Street Address City Phone I-Net Sub Bridges Golf Course 2850 82nd Lane NE Blaine Y~ Y Mounds View City Hall 2401 Hwy. 10 Mounds View 784-3055 X X Mounds View Community Center 5394 Edgewood Dr. Mounds View Y Y Mounds View Fire Station Hwy. 10 Mounds View X Y Mounds View Maintenance Gar. 2466 NE Bronson Dr. Mounds View 784-3114 Y x Util.- Booster Station (Reservoir) 2450 Bronson Drive Mounds View iy EXHIBIT B - Continued North Suburban Area Institutional Connections Page 3 Inst. Name Street Address City Phone I-Net Sub Util.- Lift Station #1 5396 Raymond Ave. Mounds View Y Util.- Lift Station #2 8251 Groveland Road Mounds View Y Util.- Well #1 2401 Highway 10 Mounds View Y Util.- Wel( #2 2524 Bronson Drive Mounds View Y Util.- Well #3 2426 Bronson Drive Mounds View Y Util.- Well #4 2408 Hillview Drive Mounds View Y Util.- Well #5 5100 Long Lake Road Mounds View Y Util.- Well #6 7545 Groveland Road Mounds View Y City of New Brighton Inst. Name Street Address City Phone I-Net Sub Brightwood Hills Golf Course 1975 NW Silver Lake Rd. New Brighton 638-2150 X X New Brighton City Hall 803 NW 5th Ave. New Brighton 638-2100 X X New Brighton Fire Station 785 NW 5th Ave. New Brighton 633-2727 X x New Brighton Maintenance Bldg. 700 NW 5th Ave. New Brighton Y X New BrightonFamily Service Cntr. 400 NW 10th St. New Brighton 638-2130 X X Util.- Lift Station 1(under const.) To Be Assigned New Brighton Y Util.- Lift Station 2 531 5th Avenue NW New Brighton Y Util.- Lift Station 3 515 3rd Avenue NW New Brighton Y Util.- Lift Station 7 650 Cleveland Ave. New Brighton Y Util.- Lift Station 8 24 New Brighton Road New Brighton Y Util.- PGAC Water Treatment Plant 3001 5th Street NW New Brighton Y Util.- Well 10 & Iron Removal Plant 660 5th Street SW New Brighton Y Util.- Well 11 & Iron Removal Plant 1375 7th Street NW New Brighton Y Util.- Well 12 & Iron Removal Plant 2400 Mississippi St. ew Brig-hton Y Util.- Well 13 & Water Treatment 680 5th Street NW New Brighton Y Util.- Well 14 1377 7th Street NW New Brighton Y Util.- Well 15 590 20th Street NW New Brighton Y • ` EXHIBIT B - Continued North Suburbon Area Institutional Connections Page 4 Inst. Name Street Address City Phone I-Net Sub Itil.- Well 8 600 Silver Lake Road New Brighton Y . Util.- Wells 3& 4 700 Silver Lake Road New Brighton Y Util.- Wells 5& 6 3001 5th Street NW New Brighton Y Util.- Wells 9 2745 5th Street NW New Brighton Y City of North Oaks Inst. Name Street Address City Phone I-Net Sub North Oaks City Hall 100 Village Center Dr. North Oaks 484-5777 X X North Oaks Recreation Center 4 Mink Lane North Oaks X X City of Roseville Inst. Name Street Address City Phone I-Net Sub John Rose Minnesota OVAL 2661 Civic Center Dr. Roseville 415-2164 X Y Roseville Activity Center 2800 Arona St. Roseville 415-2100 X X Roseville Cedarholm Golf Course 2323 N. Hamline Ave Roseville 633-5817 X Y Roseville Central Park-Bandshell Lexington Ave. -(FH Inet) Roseville X N Roseville City Hall 2660 Civic Center Dr. Roseville 490-2200 X X Roseville Fire Station 1 2701 N. Lexington Ave. Roseville 490-2306 X x Roseville Fire Station 2 2501 N. Fairview Ave. Roseville 636-6763 X X Roseville Fire Station 3 2335 N. Dale St. Roseville 484-5297 X X Roseville Gymnastics Cntr. 1240 Co. Rd. B-2 Roseville 415-2190 Y Y Roseville Harriet Alexander Nature 2520 N. Dale St. Roseville 415-2161 X X Roseville Ice Arena 2661 Civic Center Dr. Roseville 415-2164 X X Roseville License Bureau 2701 Lexington Ave. Roseville 490-2294 X X Rosevi(le Maintenance Building 2660 Civic Center Dr. Roseville 490-2310 Y X Util.- Booster Station 706 Shryer Ave. Rosevilfe Y Util.- Elevated Tank 2501 N. Fairview Ave. Roseville Y 'til.- Lift Station 635 S. Owasso Blvd Roseville Y Util.- Lift Station 2980 Galtier Street Roseville Y Util.- Lift Station 1610 Co. Rd. C-2 Roseville Y • ' EXHIIBIT B - Continued North Suburban Area Institutional Connections Page 5 Inst. Name Street Address City Phone I-Net Sub Jtil.- Lift Station 3033 Cleveland Ave. Roseville Y Util.- Lift Station 435 Wagner Street Roseville Y Util.- Lift Station 2013 Cohansey Blvd. Roseville Y Util.- Lift Station 1680 Fernwood Ave. Roseville Y Util.- Lift Station 3050 Lexington Ave. Roseville Y Util.- Lift Station 1216 Josephine Road Roseville Y Util.- Lift Station 3050 Long Lake Road Roseville Y Util.- Lift Station 1953 Fulham Street Roseville Y Util.- Lift Station 2050 Walnut Street Roseville Y Util.- Lift Station 201 Center Street Roseville Y Util.- Storm Water Pumping Station 2535 N. Victoria St. Roseville Y Util.- Storm Water Pumping Station 1658 Millwood Ave. Roseville Y Jtil.- Storm Water Pumping Station 591 Owasso Hills Drive Roseville Y Util.- Storm Water Pumping Station 2340 St. Croix Street Roseville Y Util.- Storm Water Pumping Station 1999 Fulham Street Roseville Y City of Shoreview Inst. Name Street Address City Phone I-Net Sub Shoreview City Hall /Community 4600N. Victoria St. Shoreview 490-4600 X X Shoreview Maintenance Bldg. 4665 N. Victoria St. Shoreview 490-4650 Y Y Util.- Booster Station 855 Highway 96 Shoreview Y Util.- Lift Station 4468 Chatsworth Shoreview Y Util.- Lift Station 3580 Cohansey Shoreview Y Util.- Lift Station 425 Gramsie Road Shoreview Y Util.- Lift Station 875 Gramsie Road Shoreview Y Util.- Lift Station 636 Highway 96 Shoreview Y Util.- Lift Station 1088 Lake Beach Drive Shoreview Y Util.- Lift Station 3366 Lexington Ave. Shoreview Y • ' EXHIBIT B - Continved North Suburban Area Institutional Connections Page 6 Inst. Name Street Address City Phone I-Net Sub Util.- Lift Statio.n 4680 Lexington Ave. Shoreview Y Util.- Lift Station 915 Oak Ridge Shoreview Y Util.- Lift Station 3194 West Owasso Blvd. Shoreview Y Util.- Lift Station 3212-1/2 W. Owasso Blvd. Shoreview Y Util.- Lift Station 4338 Reiland Lane Shoreview Y Util.- Lift Station 4465 Rice Street Shoreview Y Util.- Lift Station 699 Schifsky Road Shoreview Y Util.- Lift Station 700 Schifsky Road Shoreview Y Util.- Lift Station 4307 Snail Lake Blvd. Shoreview Y Util.- Lift Station 4412 Snail Lake Blvd. Shoreview Y Util.- Lift Station 512 Suzanne Ave. Shoreview Y Util.- Lift Station 5024 Turtle Lane East Shoreview Y Util.- Lift Station 3121 Woodbridge Shoreview Y Util.- Sucker Lake Pump 50 Highway 96 W. Shoreview Y Util.- Water Tower 745 County Road E Shoreview Y Util.- Water Tower 5880 Lexington Avenue Shoreview Y Util.- Well 785 Highway 96 Shoreview Y Util.- Well 883 Highway 96 Shoreview Y Util.- Well 4965 Hodgson Road Shoreview Y Util.- Well 902 Monterey Shoreview Y Util.- Well 750 Mound Avenue Shoreview Y Util.- Well 4675 Victoria Street Shoreview Y City of St. Anthony Inst. Name Street Address City Phone I-Net Sub SAV Liquor Store #1 2900 Pentagon Drive St. Anthony Y SAV Liquor Warehouse #2 3900 Silver Lake Road St. Anthony Y St. Anthony City Hall 3301 Silver Lake Rd. St. Anthony 789-8881 X X • - EXHIBIT B - Continued North Suburban Area ?nstitutional Connections Page 7 Inst. Name Street Address City Phone I-Net Sub St. Anthony Fire Station 2900 Kenzie Terrace St. Anthony 788-1434 X X St. Anthony Public Works 3801 Chandler Dr. St. Anthony X X Util.- Foss Road Lift 3829 Foss Road St. Anthony Y Util.- Harding Lift 2700 37th Ave St. Anthony Y Util.- Water Filtration Piant 3807 Silver Lake Road St. Anthony Y Util.- Well #5 2920 Silver Lake Road St. Anthony Y CN Inst. Name Street Address City Phone I-Net Sub Canadian Days Parade-drop Little Canada Rd Little Canada X CTV Irondale studio 2425 Long Lake Rd. New Brighton 783-9334 X X CTV Van 1 2425 Long Lake Rd. New Brighton 783-9334 X CTV Van 2 950 Woodhill Dr. Roseville 481-9554 X Lake Owasso Beach - drop N Owasso Bvd. Shoreview X LC Spooner Park- drop Eli Rd. Little Canada X NB Parade - drop New Brighton X RAHS Parking Lot (on B2)- drop Roseville X Rosefest parade - dropl Lexington Ave. Roseville X Rosefest parade - drop2 Lexington Ave. Roseville X Rosetown Legion field-drop W. Co. Rd. C. Little Canada x Dist 282 - SA/NB Schools Inst. Name Street Address City Phone I-Net Sub ISD 282 District Office SA/NB 3303 33rd Ave. NE St. Anthony 706-1000 X X St. Anthony High Schoo( 3303 33rd Ave. NE St. Anthony 706-1100 X X St. Anthony Middle School 3303 33rd Ave. NE St. Anthony 706-1200 X X Wilshire Park Elementary 3600 NE Highcrest Rd. St. Anthony 706-1030 X X Dist 621 - Mounds View Inst. Name Street Address City Phone I-Net Sub 1 Area Learning Center 4182 N. Lexington Ave. Shoreview 482-8203 N X • ' EXHIBIT B - Continued North Suburban Area Institutional Connections Page s Inst. Name Street Address City Phone I-Net Sub Bel Air Elementary School 1800 NW 5th St. New Brighton 633-3521 X. X Chippewa Middle Schooi 5000 Hodgson Rd. North Oaks 483-6635 X X Edgewood Middle School 5100 N. Edgewood Dr. Mounds View 784-2010 X X Highview Middle Schoof 2300 NW 7th St. New Brighton 633-8144 X X Irondale High School 2425 Long Lake Rd. New Brighton 786-5200 X X ISD 621 District Service Center 2959 Hamline Ave. Roseville 636-3650 X X Island Lake Elementary 3555 N. Victoria St. Shoreview 484-5553 X X Mounds View High School 1900 W. Co. Rd. F Arden Hills 633-4031 X X Oak Grove High School 5100 Hodgson Rd. North Oaks 484-2057 X X Pike Lake Elementary 2101 NW 14th St. New Brighton 633-7711 X X Pinewood Elementary 5500 Quincy St. Mounds View 784-4006 X X Ralph Reeder Center 500 NW 10th St. New Brighton 636-1910 X X Snail Lake Elementary 4550 Hodgson Rd. Shoreview 483-6725 X X Sunnyside Elementary 2070 W. Co. Rd. H New Brighton 784-5226 X X Turtle Lake Elementary 1141 W. Co. Rd. I Shoreview 484-2150 X X Valentine Hills Elementary 1770 W. Co. Rd. E2 Arden Hills 631-0737 X X Dist 623 - Roseville Area Inst. Name Street Address City Phone I-Net Sub Brimhall Elementary 1744 W. Co. Rd. B Roseville 638-1958 X X Central Park Elementary 535 W. Co. Rd. B2 Roseville 481-9951 X X Edgerton Elementary School 1929 Edgerton Street Maplewood 772-2565 X X Emmet D Willams Elem 955 W. Co. Rd. D Shoreview 482-8624 X X Fairview Community Center 1910 W. Co. Rd. B Roseville 631-1013 X X Falcon Heights Elementary 1393 W. Garden Av. Falcon Heights 646-0021 X X ISD 623 District Center 1251 W. Co. Rd. B2 Roseville 635-1600 X X Little Canada Elementary 400 Eli Rd. Little Canada 490-1353 X X Parkview Center School 701 W. Co. Rd. B Roseville 487-4360 X X 9XHIBIT B - Continued North Subur6an Area Institutional Connections Page 9 Inst. Name Street Address City Phone I-Net Sub Roseville Area High School 1261 Hwy. 36 Roseville 635-1660 X X Roseville Area Middle Sch 15 E. Co. Rd. 62 Little Canada 482-5280 X x Guard/Reserves Inst. Name Street Address City Phone 1-Net Sub Army Reserve Training Cntr. Lexington & Hwy. 96 Arden Hills Y Y National Guard Armory 211 N. McCarrons Lake Roseville 296-4140 X X Hennepin County Inst. Name Street Address City Phone I-Net Sub St. Anthony Public Library F2900 NE Pentagon Dr. Tst. Anthony 781-1900 X X Higher Education Inst. Name Street Address City Phone I-Net Sub Bethel College 3900 Bethel Dr. Arden Hills 638-6180 X X Capital View (Dist. 916) 70 W. Co. Rd. B2 Little Canada 415-5413 x X Northwestern Col- FB field 3003 Snelling Ave. N. Roseville 631-5100 X X Northwestern Col- Gym/BB 3003 Snelling Ave. N. Roseville 631-5267 X X Northwestern College-Studio 3003 Snelling Ave. N. Roseville 631-5312 X X U of M- Earl Brown Center 1890 Buford Ave. Falcon Heights 624-2777 X United Theo. Seminary 3000 NW 5th St. New Brighton 633-4311 Y Y ISP lnst. Name Street Address City Phone I-Net Sub Risdahl-Linahan Agency 2475 NW 15th St. New Brighton 631-1098 X T.I.E.S. 1925 W. Co. Rd. B2 Roseville 638-2339 X Lake Johanna Fire Dept. Inst. Name Street Address City Phone 1-Net Sub Lake Johanna Fire Station 1 2346 New Brighton Rd. Arden Hills 633-0349 Y X Lake Johanna Fire Station 2 4676 Hodgson Rd. Shoreview 484-3444 Y Y Lake Johanna Fire Station 3 1140 W. Co. Rd. I Shoreview 481-7025 Y X Lake Johanna Fire Station 4 3615 N. Victory St. Shoreview 483-0767 X X J ' EXHIBIT B - Continued North Suburban Area lnstitutional Connections Page to lnst. Name Street Address City Phone I-Net Sub lon-Profit lnst. Name Street Address City Phone I-Net Sub Northwest Youth & Family Services 3490 Lexington Ave. Shoreview 1486-3808 Y Y Private Schools lnst. Name Street Address City Phone I-Net Sub Concordia Academy 2400 N. Dale St. Roseville 484-8429 X X Corpus Christi School 2131 N. Fairview Ave. Rosevifle 639-8888 X King of Kings School 2330 N. Dale St. Roseville 484-9206 X X North Side Christian School 7901 Red Oak Drive Moundsview 786-8632 X St. Charles Barromeo 2727 NE Stinson Bvd. St. Anthony 781-2643 X St. Christopher's Ep. 2300 N. Hamline Ave. Roseville 633-4589 X St. John the Baptist School 845 NW 2nd Ave. New Brighton 633-1522 X X St. John the Evangelist 2621 McMenemy St. Little Canada 484-2708 X x St. Odilia Schoo! 3495 N. Victory St. Shoreview 484-3364 X St. Rose of Lima 2072 N. Hamline Ave. Roseville 645-9389 X X Ramsey County lnst. Name Street Address City Phone !-Net Sub Island Lake Golf Center Grey Fox Rd. Shoreview Y Y Lake Owasso Residence 210 N. Owasso Bvd. Shoreview 484-2234 Y Y Ramsey Co. Library - Arden Hills 1941 W. Co. Rd. E2 Arden Hills 636-1790 X X Ramsey Co. Library - Mounds View 2576 Hwy. 10 Mounds View 784-8829 Y X Ramsey Co. Library - Roseville 2180 N. Hamline Ave. Roseville 631-0494 x X Ramsey Co. Library - Shoreview 4570 N. Victoria St. Shoreview 486-2210 X X Ramsey Co. Public Works Bldg. 3377 N. Rice St. Shoreview 484-9104 Y X Ramsey Co. Sheriff Patro( Station 655 W. Co. Rd. E Shoreview 481-1300 Y Y Ramsey Co. Women's Detention Kent & Larpenteur Y Y Shoreview Ice Arena 877 W. Hwy. 96 Shoreview 484-2400 Y Y EXHIBIT C Descri,ption of Work Time Frame Engineering Walkout 0-6 months Engineering Design 2-8 months Commerce Permitting Day 75 Fiber Optic Cable and Node Installation 11-16 months Amplifier Replacement 12-24 months Passive Equipment Replacement 18-36 months 5ystem Balancing and Proof-of-Performance 36 months Activation in Phases; Completion By November 30, 2000 EXHIBIT D - NORTH SLTBLT7tRAN I-NET PERFORMANCE STANDARDS Upon completion of the I-Net upgrade: I. Video Transmission A. Video transmission will comply with the following performance : standards: 1. Carrier to noise ratio = 45dB or better 2. Carrier to composite triple beat = 53dB or better 3. Carrier to compasite second order = 55 dB or better 4. Carrier to cross modulation = 55 dB or better 5. System signal level variations (peak to valley) = n= 10 + 2 or better for all coaxial cable portions of the I-Net (where N= the number of amplifiers in cascade). B. Testi.ng will occur twice yearly following the timing established in CFR 76.601 and 76.605. ' 1. From the institution to the longest subscriber cascade. 2. From the institution through the applicable headend/ hub site returning back to the same institution. 3. Performed using existing I-Net carriers active at the time of the testing, which will subject them to service interuptions. 4. Completed at Company-designated entry demarcation point at the institution. 5. The system will meet calcalated worst case fully loaded video and audio measurements, taking into consideration ezisting I-Net data loading at the time the measurement is taken. 6. Under ordinary operating conditions. 2. Digital Transmission A. For I-Net that is 50% or more coaucial cable, a Bit Error Rate of 1 x 10(-8) at the demarcation point. 1. Outage times not included 2. Ordinary operating conditions B. For I-Net that is 50% or more fiber optic cable, a Bit ErrorRate of 1 x 10(- 9) at the demarcation point. 1. Outage times not incIuded 2. Ordinary operating conditions C. For both coaidal and frber network, the company will meet or exceed a reliability factor of 99.965% on an annual basis. D. Testing will occur twice yearly, during the months of January/February and July/August. EXHIBIT D - Continued 3. Repair and Maintenance A. Company will provide a repair force of technicians capable of responding properly to all requests for service by I-Net Users and available on a 7 X 24 X 365 basis. B. Under normaI operating conditions, the initial page to the technician on call will be within a 10 minute time frame. Barring situations that are outside the control of the Company (i.e., physical damage to the network caused by third pardes not under the control of the cable company, weather related restrictions, etc.), the company will continue to work on a service problem until it is resolved and complete its resolution of such problem within eight (8) hours, if resolution of such problem is within control of company. C. Fiber may be incorporated, where necessary, to reduce amplifier cascades to meet performance standards. Where possible, fiber nodes may be located within the building or facility of the I-Net user. D. I-Net Users wilI be notified at least seven days in advance of any scheduled maintenance that will interrapt service on the I-Net, unless I:Net Users agree to waive such time frame. Where possible, such maintenance will be scheduled at times of low usage.