Ordinance No. 17 – Cable TV Ordinance

Posted on Posted in Ordinance

Cable television franchise ordinance.

An ordinance granting unto Kohrt Communications Inc.,Rochester, Minnesota, a corporation organized under the laws of the state of minnesota, its heirs, successors or assigns, the right, franchise, and authority for a period of 15 years, from and after the adoption hereof, to acquire, construct, and operate a catv system within the city of Bellechester, Minnesota, to include a community antenna television system, and to sell and supply individuals, firms, and corporations, public and private, at any and all places, within the sorporate limits of the city of Bellechester, as said limits now are or hereafter at any time be established, audiovisual services; prescribing the terms and conditions thereof.

    1. The City of Bellechester, hereafter referred to as the City, hereby grants Kohrt Communications hereinafter referred to as the grantee, and its successors and assigns, the right and authority to install, maintain, and operate a transmitting and distribution for television, radio, audiovisual, and other electrical signals in, over, on, and under the streets, alleys, and public highways of the City: to maintain and use the same for the purpose of construction and operating a transmitting and distribution system for television, radio, audiovisual, all in strict accordance with the laws, ordinances, and regulations of the United States of America, the State of Minnesota and the City of Bellechester, as now existing or hereafter adopted or amended. Any modifications of the provisions of F.C.C. rules Subpart C Section 76.31 shall be included in this franchise either within one (1) year of the adoption thereof by the Federal Communication Commission or at franchise renewal, whichever is sooner.
    2. The grantee shall at all times during the life of this franchise be subject to all lawful exercise of the police power of the City and to such reasonable regulations as the City shall hereinafter provide and shall comply with all applicable state and federal regulations.
    3. This franchise and the rights, privileges and authority hereby granted shall take effect and be in full force from and after final passage and election hereof, as provided by law, and shall continue in force and effect for a term of 15 years, provided that within 30 days after the date of passage of this Ordinance the grantee shall:
      1. File with the City Clerk its unconditional acceptance of this franchise and promise to comply with and abide by all its provisions, terms and conditions. Such acceptance and promise shall be in writing, duly executed and sworn to, by or on behalf of the grantee, before a Notary Public or other officer authorized by law to administer oaths.
      2. File with the City Clerk, prior to construction of any kind, insurance certificates provided for herein which shall be approved by the City. Should grantee fail to comply with the above terms of this subsection, it shall acquire no rights, privileges or authority under this franchise whatsoever
    4. This franchise shall not be exclusive and shall not restrict in any manner the City Council, or any other governing body of the City of any regulatory power which it now has or which may hereafter be authorized or permitted by the laws of the State of Minnesota.
    Grantee shall indemnify and hold the City harmless at all times during the terms of this franchise and specifically agrees that it will pay all damages and penalties which the City may legally be required to pay as a result of granting this franchise. Such damages and penalties shall include, but not be limited to, damages arising out of copyright infringements and other damages arising out of installation, operation, or maintenance of the CATV system authorized, allowed, or prohibited by this franchise. The grantee shall, at all times during the terms of this franchise, carry and require their contractors to carry:

    1. insurance in such forms and in such companies as shall be approved by the City to protect the City and grantee from and against any and all claims, injury or damage of persons or property, both real and personal, caused by construction, erection, operation, and maintenance of any structure, equipment, or appliance. The amount of such insurance shall not be less than $500,000.00 as to any one person and $1,000,000.00 as to any one accident or injury or death to persons and $250,000.00 for damage to property.
    2. Workmen’s Compensation Insurance as provided by the laws of the State of Minnesota as amended.
    3. Insurance with limits of not less than $500,000.00/$1,000,000.00 of public liability coverage and property damage insurance with a limit of not less than $250,000.00.All of said insurance coverage shall provide a ten (10) day notice to the City Clerk in the event of material alteration or cancellation of any coverage in said policies prior to the date of said material alteration or cancellation shall become effective.
  3. RATES
    Grantee shall have the right to charge and collect compensation from all subscribers to whom it shall furnish service. The rate schedule to be charged customers shall be kept on file with the City Clerk at all times and no change in such schedule shall be made without first filing the changed schedule with the City Clerk more than thirty (30) days prior to the effective date thereof. The City Clerk shall present changes filed to the City Council at its next regular meeting after receipt of said changes by the City Clerk. The grantee shall file no more than one rate schedule during any period of twelve (12) months. The grantee shall not, as to rates, charges, services, facilities, rule, regulations or in any other respects, make or grant any prejudice or advantage to any person, or subject any person to any prejudice or disadvantage; provided, however, that this provision shall not be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification shall be entitled.Standard Rates and Charges for the Basic Service

    1. Installation charges:
      1. Initial tap-in and connection $29.95 charges (TV and/or radio, residential or commercial)
      2. Additional installation at same $15.00 location , each
      3. Reconnect charge $19.95
    2. Monthly Rates
      1. First TV outlet, residential, $14.95 basic service
      2. Additional TV outlets, each $ 2.95
    1. The grantee shall construct a distribution system capable of carrying a minimum of thirty (30) television channels.
    2. The grantee shall maintain its cable system in a manner consistent with the current technical operational requirements of the F.C.C.
    3. The grantee shall at all times comply with the rules and regulations of the Federal Communications Commission, the State of Minnesota, and the City of Bellechester.
    4. The construction and maintenance of the grantee’s distribution system shall comply with any and all adopted electrical codes.
    5. The City hereby grants the right, privilege, and authority to grantee to use public easements, to lease, rent, or in any other manner obtain the use of poles with overhead lines, conduits, trenches, ducts, lines, cables, and other equipment and facilities from any and all holders of public licenses mad franchises within he corporate limits of the City, and to use such poles, conduits, trenches, ducts, lines, and cables in the course of its business. Grantee shall be allowed to erect its own poles upon receiving the written permission of the City to do so.
    As a condition of the grant of franchisse the grantee shall:

    1. As soon as possible, and in no event later than ninety (90) days following the grant of this franchise by the City, the grantee shall make application to the Federal Communications Commission for the “Certificate of Compliance” covering the construction and operation of the CATV system authorized by this franchise.
    2. Extend energized cable to areas averaging forty (40) dwelling units or more to a strand mile of cable, within and adjacent to the City of Bellechester and/or extending from the City of Bellechester and shall thereafter reasonably extend its energized cable throughout the franchised area.
    3. Begin construction within three (3) months from the date of the F.C.C. approval of the “Certificate of Compliance” and accomplish significant construction within six (6) months after approval of the “Certificate of Compliance”.
    4. The grant shall provide a toll-free telephone number for subscriber complaints and shall maintain service capable of corresponding to subscriber complaints or requests for service within twenty-four hours after receipt of the complaint or request.Whenever it is necessary to shut off or interrupt services for the purpose of making repairs, adjustments or installation, the grantee shall do so during periods of minimum use by subscribers. Unless such interruption is unforeseen, the grantee shall give reasonable notice thereof to the subscribers affected. All cost incurred in making such repairs, adjustments, or installation shall be borne by the grantee unless otherwise provided for in this ordinance.

      All complaints by the City, subscribers or other citizens regarding the quality of service, equipment malfunction, billing disputes, and any other matters relative to the cable television system shall be investigated by the grantee within twenty-four hours. The grantee shall rectify the cause of the complaint if reasonably possible. If a subscriber or citizen complaint cannot be resolved within thirty (30) days, the complainant may then file a complaint with the City Clerk who shall inform the City Council that the grantee and complainant have been unable to resolve the complaint.

    5. During the construction period the grantee shall report the construction status of the system to the City at such times or period as the City shall determine.
    6. Should taxes be assessed by the State of Minnesota or the City on a subscriber basis (similar to utility taxes) the grantee shall without further approval of the City pass such tax on to subscribers.
    In the event of grantee’s failure to comply with any provisions of this franchise, the City shall issue a notice to the grantee requesting compliance within sixty (60) days from the date of notice. Should the grantee fail to comply, or fail to provide a satisfactory explanation, the City may upon its option hold a hearing to determine facts and as a result thereof, may cancel the grantee’s franchise.
    Prior to expiration of the term of the franchise, the grantee shall have the privilege, providing the performance of the grantee has been satisfactory to negotiate with the City for an additional fifteen (15) year term of the franchise and/or changes in the terms or conditions; provided, however, the renewal of the franchise will be granted only after the qualifications and past performance of the grantee have been considered and approved by the City in a public proceeding in accordance with the laws of the State of Minnesota.
    No person shall own or operate a community antenna television system in the City of Bellechester except by frqnchise issued by the City granting such power to grantee.
    1. The grantee shall provide to each of its subscribers who receive al or part of the total services offered on the system, reception on at least one specially designated access channel. The specially designated access channel may be used by local educational authorities and local government on a first come, non-discriminatory basis. During those hours that the specially designated access channel is not being used by the local educational authorities or local government, the grantee shall lease time to commercial or non-commercial users on a first-come, non-discriminatory basis of the demand for such time arises. The grantee may also use this specially designated access channel for local origination during those hours when the channel is not in use by local educational authorities, local government, or commercial or non-commercial users who have leased time on the special access channel.
    2. The grantee shall establish rules pertaining to the administration of the specially designated access channel.
    3. Nothing in this standard shall be construed so as to preclude the installation of converters by the system on a voluntary basis, or as a result of an agreement arrived at through negotiation between the parties to a franchise, or by a potential access user who wishes to install converters in order to make use of an additional channel or channels.
    The grantee shall not deny service, access to cable television services or otherwise discriminate against any person on the basis of race, color, religion, national origin, or sex. Grantee shall establish, maintain, and carry out a positive continuing program of specific practices designed to assure equal opportunity in every aspect of its employment policy and practices and shall adhere to the equal employment opportunity requirements set forth in the rules of the Federal Communications Commission.
    Whenever the City shall undertake any public improvement which affects cable communications equipment it shall, with due respect to reasonable working conditions, direct the grantee to remove or relocate its wires, conduits, cable, and other property located in said streets, right-of-way or public places. The grantee shall relocate or protect its facilities at its own expense. The City shall give the grantee reasonable notice of the undertaking of public improvements which effect grantee’s cable communications equipment.
    All of the rules and regulations of the F.C.C. relating to cable television systems as promulgated and amended from time to time, shall be and hereby are incorporated herein by reference and made a part hereof; in any event any modifications of such rules and regulations shall be automatically incorporated herein as of their effective date.
    The grantee shall not sell, or transfer its system to another, or alter the composition of its individual partners and stockholders, nor transfer any rights of this charter to another without written notice and approval by the City; provided, that such approval shall not be unreasonably withheld if the vendee, assignee, or lessee has filed with the appropriate official of the City, an instrument duly executed reciting the fact of such sale, assignment or lease accepting the terms of this chapter and agrees to perform all conditions thereof. However, the grantee has the right to assign this franchise to a proper lending institution.
    1. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not effect the validity of the remaining portion hereof.
    2. This chapter does not cease to be effective upon expiration of the franchise or change in the identity of the grantee.

This Ordinance shall therefore take effect and be in force upon its passage. Enacted by the City Council of Bellechester, Goodhue County, Minnesota, on the 9th day of November, 1989.

Attest: Barbara Heppelmann, Clerk Quentin J. Majerus, Mayor City of


Kohrt Communications Inc. by Forrest W. Kohrt