HomeMy WebLinkAboutCC PACKET 07101984 Meeting Sheet
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Box: 16
Folder: CC PACKETS 1981-1984 & 1987
Document: CC PACKET 07101984
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CITY OF ST. ANTHONY
ORDINANCE 1984-003
AN ORDINANCE AMENDING ORDINANCE 1982--009 , KNOWN
THE CABLE COMMUNICATIONS ORDINANCE
The City Council of the City of St. Anthony hereby ordains :
SECTION I . That Ordinance 1982-009 , Article VI , Section 4 is
hereby amended to read as follows :
-Amendment.by Substitution to As�tiele V1.(Passive Rate Review):.. recover costs of franchising-and'any other additional payments
SDLTI(!1 4. FRANCHISE FEE, RA1L+5, CHARGES, CHANGES IN FEES AND PROCEDURES which are required by the terms of this Franchise. Grantee.agrees
A. Rate Change Procedure.
to support any waiver required by the FCC for the established
(1) 1b the extent permitted by law, all increases in subscriber rates Franchise fee: the annual fee be subject to
. may j renegotiation at
and charges shall becharged by Grantee in a manner provided for such time as federal or state authorities no longer regulate the
herein. Grantee, as a condition precedent to its acceptance of amount of the fee. If Grantee and City do not agree in renego-
this Franchise hereby knowingly and voluntarily consents to these tiations, the Franchise fee shall remain unchanged.
procedures for the term of this Franchise of all rates and (2) Payment will be made to City with an itemization of the Gross
charges. Revenues.
(2) City hereby reserves the right to approve or adopt regulations C. Rates and Other Charges:
governing Grantee's collection of advance charges and deposits; (1) Rates and charges charged by Grantee for monthly service and
installation and reconection charges, policies and procedures; installation and other hereunder shall be uniform, fair and
disconnection charges, policies and procedures; and policies reasonable and designed to meet all necessary costs of service,
regarding and the availability of refunds. Approval of City shall including a fair rate of return on the original cost, less depre-
riot be unreasonably withheld or delayed. ciation, of the properties devoted to such service (without regard
(3) Coat for installing any part of the Syat®will be a factor in the to any subsequent sale or transfer price or cost of such
rate only if such cost was incurred within the rate territory. properties).
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(4) the territory for rates applicable to System shall be City and all I (2) For one (1) year after completion of construction of 541 miles of
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Cities which have granted a Franchise to Grantee relative to the i cable plant in the initial service area. as certified In writing
System delineated in the Offering. from Grantee to the North Suburban Cable Communication Commission
B. Franchise Fee. II, the maximum rates shall be the specified rates of Grantee as
(1) 1hroughouut the term of this Franchise, Grantee shall pay to City, included in Exhibit A, attached hereto and made a part of this
within 60 days after the end of each fiscal year of Grantee. an Franchise and lax= as Grantee Schedule of Rates.
annual Franchise fee of five percent (5Z) of all Gross Revenues. (3) Service requests for maintenance or repair of Grantee's property
No payment will be allowed of any Franchise fee that is different shall be performed at no charge to a subscriber. If such main
from five percent (5%). other than the filing fee and payment teuance or repair is required as a result of damage caused
by
required of the successful applicant as established by City to subscriber, Grantee may charge to the subscriber as a maximum its
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direct costs for material and labor for service calls to (e) The efficiency of Grantee;
subscriber's tome. (f) The Quality of the service offered by Grantee;
(4) Grantee shall give City and the North Suburban Cable (g) The original cost of the ten-city cable communications system
Cammnications Commission II written notice of rates for new or delineated in the Offering, less depreciation, except that
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additional services not initially included in Offering of Grantee Grantee agrees and warrants that should the actual cost of
sod therefore not listed in Exhibit A. Each new or additional the ten-city cable cammanications system delineated in the
service rate shall be deemed approved unless expressly disapproved Offering exceed Grantee's estimate for construction of 339.5
by resolution of Council of City according to the terms of this miles of aerial plant, 83 miles of underground subscriber
Franchise within ninety (90) days after the notice has been given plant, 66.4 miles of institutional plant, Grantee shall
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as provided in this Franchise. assume all of said excess costs and all of said excess costs
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D. Rate Changes
shall not be a consideration in any subsequent request for a
(1) No rate change shall be approved that would result in different rate increase pursuant to this Franchise or any franchise
rates or charges for service to subscribers in the rate territory granted to Grantee relative to the cable communication system
receiving similar service, other than those specified in Article delineated in the Offering.
VI, Section 2.B. (h) A fair rate of return with respect to investments having
(2) The standards for reviewing a proposed rate change will include at similar risks to that of providing cable communication
least the following: services;
(a) The ability of the Grantee to render System services and to (i) The extent to which Grantee has adhered to the terms of thin
Franchise;
derive a reasonable profit therefrom under the existing rate u
Pschedule and proposed rate schedule; (j) Fairness to residents and subscribers;
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(b) All revenues and profits or actual losses derived from (k) Capital expenditures (actual and, if the situation so
System, warrants, projected) by Grantee in providing updated tech-
(c) Tax benefits and tax costs received by Grantee, its partners nology and service to subscribers;
(1) The extent to which Grantee has then provided service to
or shareholders, as the result of their irnestment in the
schools, hospitals, libraries, publicly vaned or leased
System;
(d) Cash flow generated by System; buildings and similar institutions within City;
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(m) The extent to which Grantee has technologically upgraded the (c) upon written request of City or the North Subtaban Cable
System; Cmmrdeations Commission II. the notice shall include .
(n) Increased or decreased expenses inured by Grantee in the current financial and other information with at least the
purchase of services; following:
(o) Group W's financial goals and the methodology to arrive at 1. Balance Sheet;
such gds; ; 2. Incame Statement;
(P) Group W's operating margin. both actual for preceding years 3. Statement of sources and application of funds;
and projected operating margins; and 4. Detailed supporting schedules of expenses, income, assets
(q) Such other factors as City or Grantee may deem relevant. and other items as may be required by City;
(3) The procedures to be followed in changing a Basic Service rate or 5. Statement of current and projected subscribers;
charge shall include at least the following: 6. A current list of rates and charges of Grantee applicable
(a) Grantee shall give City and the North Suburban Cable to systems owned or operated by its parent corporation or
Cmiunnications Commission II written notice of any proposed other subsidiaries or affiliates of its parent cor-
rate increase at least ninety (90) days prior to the proposed poration at other locations;
effective date of the rate increase. Each rate increase 7. A current list of rates and charges for other systems in
shall be deemed approved unless expressly disapproved by the seven county Metropolitan area;
resolution of Council of City according to the terms of this 8. Cash flow derived from System services since the
Franchise within ninety (90) days after the notice has been commencement of this Franchise;
received as provided in this Franchise. 9. Statement of tax benefits received by Grantee, its part-
(b) The notice shall be supported by statistical and other proof ners or shareholders, as a result of their investment in
indicating that the existing rate or charge is inadequate and item;
unreasonable and that the proposed increases are required to 10. Statement of financial goals of Group W and methodology
suable Grantee to render service to fulfill its obligations utilized to arrive at such goals; and
under this Franchise and to derived a reasonable profit 11. Group W's operating margins for preceding years as well
therefrom. as projected margins.
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(d) City shall notify Grantee and Hoard in writing and may sche- (i) If City fails to approve the change of Basic Service rates,
dule a public hearing on the requested increase in Basic Grantee may appeal said determination to the Board.
Service rates within two (2) weeks from the date of objection (4) The procedures to be followed in
changing any rate or charge other
to the request. Grantee will notify the public through pro- than Basic Service rate shall include the following:
viding notice for one (1) week, each day between 7:00 p.m. i (a) Grantee shall give City written notice of any rate increase
and 9:00 p.m. on two lowest tier channels of the date, place at least ninety (90) days prior to the effective date of the
and time of the hearing. If a public hearing is scheduled, rate increase.
City will publish notice ten (10) days prior to hearing in (b) In the event the percentage of the rate increase does not (in
its official newspaper. City shall not unreasonably any respect) exceed the percentage of the increase from the
disapprove any rate increase. ; CPI for the Minneapolis/St. Paul Metropolitan area in
(e) If City fails to disapprove the change of rates or charges existence on the date of the certification of this Franchise
within nine ty (90) days after receipt of notice as required
! by the Board or specified in the last rate increase notice of
above, the rate shall became effective upon the date the Grantee (whichever event is most recent), the noticed
specified in the notice of Grantee. Said effective date rate shall became effective upon its noticed effective date.
shall be after the ninety (90) day period. In the event the CPI is substantially modified in the opinion
(f) City may utilize a rate consultant to advise it on proposed of City and Grantee or is discontinued, the City and Grantee
rate changes and to assist it in maintaining uniform rates may select a mutually acceptable successor index to control
within the rate territory. A rate consultant may be any per- the provisions of this subparagraph.
am who has sufficient background and experience, in the sole (c) Except as provided in Article VI. Section 4., D.(5) (c), in
opinion of City, properly to evaluate and analyze rates and the event the percentage of the rate increases (in any
charges. respect) exceeds the percentage of increases from the CPI for
(g) All costs for the review of a request for a Basic Service the Minneapolis/St. Paul Metropolitan area in existence on
rate or charge change shall be paid by City from the the date of the certification of this Franchise by the Board
Franchise fee. or specified in the last rate increase notice of the Grantee
(h) Any time limit may be waived only if City and Grantee (whichever event is most recent). the notice rate shall
consent. become effective upon its noticed effective date but the
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notice shall also include current financials and other infor- other than Basic Service rates shall be as outlined above, except
mation as specified in Article-VI. Section 4., D.(3) (c) that subsequent to the public hearing, should the City fail to
disapprove the change of rates, either City or Grantee may ini-
(i) Upon review by City of the information provided in the I tiate binding arbitration pursuant to Minnesota statutes except as
- notice by Grantee. City may schedule a public hearing an {� delineated in the following procedures.
the proposed rate increase within two (2) reeks from the (a) The parties shall, within fifteen (15) days of City's failure
date of receipt of the notice. Grantee will notify the to approve the rate increase, appoint ane (1) arbitrator each
public as specified in Article VI. Section 4., D.(3) (d). ,ho is experienced and knowledegable in the evaluation and
'he City will publish notice ten (10) days prior to the analysis of cable rate and charge changes. Arbitrators shall
hearing in its official newspaper. each agree upon the selection of a third arbitrator similarly
(ii) After closing the public hearing. City will have thirty- qualified. within fifteen (15) days after appointment of the
one (31) days within ahich to make arty determination errand arbitrator.
regarding the noticed rate increase; however. arty pro- (b) Within fifteen (15) days after appointment of all arbitrators
posed change in rates or charges shall became effective and upon tent (10) days written notice to parties, the
upon the date specified in the notice of Grantee arbitrators shall coomence a hearing on the rate change Pro-
regardless of the determination of City. posed by Grantee.
(iii) The City may utilize a rate consultant to advise it on (c) The hearing shall be recorded and may be transcribed at the
proposed rate changes and to assist it in maintaining request and expanse of either party. All hearing Pro-
uniform rates within the territory. A rate consultant ceedings. debates and deliberations shall be open to the
may be a person who has sufficient background and ; public, City, and Grantee and at such times and places as
experience, in the sole opinion of City, to properly contained in the notice or as thereafter publicly stated in
evaluate and analyze rates and charges. the order to adjourn.
(iv) All costs for the review of a notice for rate or charge (d) The arbitration panel shall be required to approve, reject or
change should be paid by City from the Franchise fee. modify the rate change proposed by Grantee according to the
(5) 1n the event the law should provide for the regulation of other standards established in this Franchise.
than Basic Service rates by City, the procedure for the change of
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(e) At the close of the hearings end within thirty (30) days, the order the arbitration procedure repeated and issue findings,
arbitrators shall prepare written findings and made a written orders and directions, with costs of suit to be awarded to
decision agreed upon by a majority of the arbitrators which the prevailing party,
shall be served by mail upon City and Grantee. (j) Coat of arbitration shall be borne equally. Reasonable
(f) The decision of a majority of the arbitrators shall be attorneys' fees shall be borne by the party who retains an
binding upon both parties, provided that either party may attorney.
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pursue any judicial remedies otherwise available to either
party.
(g) Should the rate change be rejected or modified by a majority
of the arbitrators, the Grantee shall within ninety (90) days
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and pursuant to procedures established by Grantee refund the F
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rate overage to affected subscribers.
(h) Either party may also seek judicial relief to the extent
authorized under Minnesota Statutes, 5572.09 and 5572.19 as
the same may be amended, and in addition, under the following i
circumstances:
(i) A party fails to select an arbitrator;
(ii) The arbitrators fails to select a third arbitrator;
(iii) one or more arbitrator is unqualified;
(iv) Designated time limits have been exceeded;
(v) The arbitrators have not proceeded expeditiously; or
(vi) Based upon the record the arbitrators abused their
discretion.
(i) in the event a Cart of competent jurisdiction determines the
arbitrators have abused their discretion, or that the regula-
tion of a given rate is beyad the authority of City, it may
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RATES''- '
I. Group-W of the North-Suburbs Inc., shall.charge.the:following installation
SECTION II. That Ordinance 1982-009, Exhibit A is hereby amended to charges and monthly fees for its•various-services:
read as follows:
Tier I- -_ a at y
Universal Service. (urge------ Rate-
First
ate-Frst Outlet Free
Additional Outlets-.: Not Available: Free
Relocation $19.95 Free
...Reconnection $19.95 Free
Tier IIi 59 video channels Installation Monthly
Basic Service- Charge Rate-
ri st Out et7F r�-ST.�JS
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Additional-Outlets Free/$19.95- $-2.95
{ Relocation $19.95 N/A
Recmumection. $19.95 N/A
I Tier III 59 video channels
Interactive Installation Monthly
i 2 3
Servicee- Rate-
rst et � 37Fre
i *10 7'5__
Additional Outlets Free/$19.95- $ 2.957
Relocation $19.95 N/A
Recamection $19.95 N/A
j s ton Monthly
FM-Radio Services Charg- Rate-
First outlet $19.95/Free- $ 1.95
Additional Outlets Free/$19.954 $ 1.95
y Relocation $19.95 N/A
j Reconnection, $19.95 N/A
n lation Y
Teleprom ter Security a Rate
(DaVilmInre ALarm and
Medical Alert Services) $99.00 and up6 $14.95
Remote control ?15--
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I With the Basic and Interactive Services, all premium pay TV services are
available each for additional monthly service charges. II. A. Ccmmercial-Account Charges -- All hotels, motels, TV retail and service
stores, nursing es. hospitals.
2 No installation charge for Basic or Interactive Service for 90 days after
cable service is first offered in an area. No installation charge for The maximum monthly service charge per outlet of commercial usage is 50
senior citizen or handicapped heads of households. In addition, installation percent of the residential first-set rate for the same service.
charges may be waived or reduced at certain times for promotional purposes. Installation charges will be determined on an individual basis after an
engineering survey of the facility has been completed. In no event
3 Fifteen percent (15X) discount for senior citizens (heads of households. age will the charges exceed the standard installation charge on a per-unit
65 and over) and for handicapped heads of households (as defined by State of basis.
Minnesota) on Monthly Service Charges for the Basic and Interactive Services.
B. Bulk-Rate Account (mea -- All apartment buildings, condominiums,
4 Installation is free if installed at same time as first outlet for cable tele- tram e• parts. etc., havuig five or more single-family dwellings at the
vision service; $19.95 if installed at a later date. i same or contiguous service address with single point billing.
5 Not available without cable television service. Billing for bulk-rate accounts is based on total units, whether
occupied or not. The mandmm monthly service charge per outlet for
6 Installation charge for Group W Security Service depends upon the number this category is 80 percent of the residential first-set rate for the
of monitoring devices (e.g.. smoke detectors, emergency alert buttons) same service. Installation charges will be determined on an individual
subscriber wishes to have installed. (roup W will actively seek federal basis after an engineering survey of the facility has been completed.
aid to assist senior citizens in their payment of these services. The In no event will the charges exceed the standard installation charge on
Security Service is available with or without other cable services. a per-unit basis.
y The additional outlet is for a nor-interactive terminal. The rate for an C. Installation Over 200 Feet -- Fbr installation of service drops lager
additional interactive outlet is $6.95. than 200 feet, the resid will be charged an additional amount for
8 Final price contingent on conclusion of negotiations with local monitoring the installation equal to the incremental theincrease of the coat of time
and materials for the portion oof he drop over 200 feet.
companies.
D. Miscellaneous
1. There is no charge for converters for any of the service tiers
beyond the installation charges noted an Page lb of 3. No other
deposits are required.
2. There is no charge to subscribers for cable-related maintenance and
repair calls. This includes universal service.
3. There will be no charge for the first drop to government. library,
educational and non-profit users of the institutional network.
Commercial rates will vary depending on service level.
4. Group W of the North Suburbs will offer pay-per-view services at
the lowest possible rate pending the conclusion of contract nego-
tiations with vendors.
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III. OIffi'R RA ES ; B. Studio and Equipment Usage a
A. Pay Cable Rates Note: tb charge is made to non-leased access users.
1. annercial
Pay Servicel.2 Installation Hmthly a. Studio production time $100.00 per bur
Charge Rate b. Remote production time $200.00 per hour
c. StAwrvision and instruction $ 50.00 per hour
Home Theater Network. Plus Free $ 5.953 d. teased channel costs $100.00 per hour
Brawl; Showtime; tome Box Office;
Cinemax; The Disney Channel Free $10.753 e. System playback costs $100.00 per hour
f. Editing ousts $100.00 per hour
1 None of the pay television products an Group W of the North Suburbs' 2. Noncommercial
system will be X-rated. Nonetheless, Grouse W of the North Suburbs . Studio production time $ 50.00 per bus
will provide an access code at no additional cost that will allay aFr
should not be sem by ents to "lock-me their children.y television ing that 9 believe b. Remote production time $100.00 per boxy
2 With the Basic and Interactive Services all premium pay T9 services c. Sugx vision and instruction $ 25.00 per taus
are available for additional monthly service charges. d. teased channel casts $ 50.00 per bur
3 There is no additional charge forservices an additional outlets e. System playback coats $ 50.00 per hour
when such service(s) is taken on thepaq first outlet.
f. Editing costs $ 50.00 per hour
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C. Institutional Network E. Municipal buildings will receive Tier II service. Schools and libraries
receive Tier III service.
1. Oa®ercial and noncommercial rates for video, audio and data uses:
F. Institutions receiving Tier II service will receive a 60 channel Jerrold
Data Transmission Rates.1 DSX-p addressable converter. those institutions receiving Tier III service
2400 BAUD -- $ 85 per month will be provided with a Jerrold Ca=micao interactive addressable cornverte.
4800 BAUD — $155 per month
9600 BAUD — $295 per month G. Teased access time is charged at $100 per hour. See also Page 3 of 3,
Over 9600 BAUD — Negotiated Form I»
Teleconferencing -- $100 per hour2 H. Videotex service rates are independent an negotiation with software
suppliers.
2. Installation charges:
I. Charges for Data Net I and II are dependent upon data rate used and on-line
Installation charges for institutional network users will be time usage.
assessed at Group W e cost of installation for labor, material and
overhead. J. Advertising
3. Rates for terminal equipment including installation, use, deposits, 1. Group W of the North Suburbs shall allocate charnnel time free of charge
etc.: t for public service advertising by local noncommercial groups on its
s locally originated and advertising-supported charnels.
Terminal equipment will be furnished and installed at Group W'S r
cost of material, labor and overhead. 2. The commercial rate for advertising shall be $30.00 per 60-second spot
plus production
n costs.
4. There will be no charge to educational, non-profit, ad governmental
facilities for the first installation of an outlet on the institutional f 3. Advertising time shall be initially allocated on the following dmurels:
and subscriber networks. ;
° Lifetime
D. Service to Governmental and Fdtrational Facilities3
° Color Radar Weather/Time
1. Installation Fees
A. One cable outlet (per facility) $ No Charge
° USA Network
B. Mbre than ane outlet (per facility) $ Time and Material
Cable News Network I and II
2. Monthly Rate (subscriber network) $ No Charge
1 There will be no charge to educational, non-profit and governmental facilities
2 Rates are negotiable for multiple hours of use.
3 See Addendum C
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Amend Article III. Design of System to read:
SF MON 1. CHANNEL CAPACITY - SUBSCRIBM fiE C
SECTION III. That Ordinance 1982-009, Article III, Section 1 is A. The System shall be capable of providing at least 59 dMnstream chan-
hereby amended to read as follows:
nels, fes fully activated upstream channels and a full-video infor-
mation retrieval dumel. The System shall provide access to infor-
mation data bases with the capacity as detailed in the Offering.
B. The System shall provide three tiers of subscriber service. Tier 1
i shall be a 22 video channel universal service tier. Tier 2 shall be a
59 video du mel Basic Service. Tier 3 shall be a 59 channel interac-
tive service tier.
Article V, Section 3 shall be amended to read:
B. Within ninety (90) days after obtaining all necessary permits, licenses,
SECTION IV. That Ordinance 1982009, Article V, Section 3 is here- certificates and authorizations, Grantee shall give written notice
by amended to read as follows:
thereof to City and commence construction and installation of System.
Grantee shall have constructed all areas of the initial service area
which contain dwelling units on or before November 12, 1984 so that per-
sons along the route of the energized cable will have individual "drops"
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as desired during the same period of time.
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Article III shall be amended to read:
SECTION 3. '1S,A-WAY CAPACITY
Grantee shall initially activate and thereafter maintain a two-way
SECTION V. That Ordinance 1982-009, Article Iii, Sections 3,
4 and 5 are hereby amended to read as follows:
capable System (audio, video and data impulse).. Grantee shall fully activate
four upstream charnels at the time of System activation. this will include
jfully interactive service capability supported by addressable, state-of-the-art
equipment.
SECTION 4. FACILITIES
' The Grantee shall construct, maintain and continue to provide all faci-
lities and equipment set forth in the Offering including, but not limited to,
the headend, hubs, distribution system, studios, equipment and other facilities.
Grantee's plan. as set forth in the Offering, for implementing the construction,
utilization, System performance, and maintenance of these facilities, including
its plans for accomodating future growth and changing needs and desires, shall
be fully and timely performed.
SECTION 5. SPECIAL CHANNEL AND ACCESS REQUIRFMEM
A. Grantee will carry broadest stations in accordance with FOC mules as
from time to time revised.
B. the Government access charnel shall be dedicated as an emergency
override channel operated by City.
C. Grantee will provide an audio/video emergency alert override system that
will permit the interruption by designated City officials of all audio
(including M and video programing. instructing citizens to switch to
the Government access charnel for emergency announcements.
D. Grantee shall provide at least thirteen (13) charnels for access use for
the following uses: two (2) public access, an educational access, a
government access, one (1) leased access, a regional interommect, a
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religious access, a senior citizens, women's, and special needs access,
a library access, a higher education, private school access, and two (2) Adopted this day of 1984.
public school district access channels. All residential subscribers who
receive all or any part of the total services offered on the System
Mayor
shall also receive all of said thirteen (13) access charnels at no addi-
tional charge. All channels shall be activated upon System activation ATTEST:
and thereafter maintained. Grantee shall establish rules and regula- z City Clerk
tions prior to System activation for the use of access channels which First Reading: July 10, 1989
shall be approved by City before implementation and thereafter shall not Second Reading:
Adopted:
be altered or amended without approval of City. In preparing such
rules:
Publish:
(1) Grantee shall provide an equal opportunity for use of access
services.
(2) Grantee will consider and use its best effort to implement needs
assessments prepared by City.
(3) The hours of operation of the access studios shall be established
by mutual agreement of City or its designee and Grantee. Should
such agreement not be reached, the hags of operation shall be, at
a minimum: MYnday through Friday, 8:00 a.m. until 9:00 p.m.;
Saturday, 8:00 a.m. until 6:00 p.m.; and Sunday 12:00 p.m. until
6:00 p.m. t
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