Loading...
HomeMy WebLinkAbout7.d. Star Cable Franchise Transfer CITY OF ROSEMOUNT t� �t { EXfCUTiVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: February 15, 1994 AGENDA ITEM: Star Cabie Franchise Transfer AGENDA SECTION: New Business PREPAf�ED BY: Ron Wasmund AGENDA �t x.�: Interim City Administrator � � �`' � E ATTACHMENTS: Resolution, Agreement Letter, � APPROVED BY: Transfer Requirements /i��v���%�'���G�� Star Metro Cable, Inc., a subsidiary of Star Mid-America, Inc., commonly referred to as Star Cable, is seeking authorization for the transfer of contral and assignment of assets of the Star Cable system to Marcus Cable Partners, Lt. According to the Franchise Agreement, which has been negotiated betw�en the City of Rosemount and Star Cable, the City has ta approve the transfer or sale of the company at such time that that sale is entertained. This permission or authorization is done in the form of a resolution, a copy of that resolution has been attached for your review and consideration. This matter was considered by the Utility Commission, who serves as your Advisory Board as Cabte Commission, at their last regularly scheduled meeting; February 7, 1994. In addition to authocization from the City to Star Cable/Marcus Partners fior the sale transfer of property it also provides an opportunity for the City of Rosemount to renegotiate or address questions, problems or vioiations that local cable customers report to the Cable Commission. To accomplish these negotiations and corrections of problems, Lakeville, Farmington and Rosemount are considering a joint agreement whereby they would hire the services of the legal firm Moss and Barnett to represent all three cities in the negofiiations with Star and Marcus. This would require each City to compile a list of issues, questions or problems they have so that they can be separately addressed to the cable netwark owners. I have attached, for your review, a letter from Moss & Barnett that describes the services that they would be providing and outline of time that they would feel committed to accomplishing this agreement and also to conduct a public hearing. This publie hearing is currently proposed to be held on the evening of February 28, 1994 or March $, 1994 at 7:00 p.m. in the Council Chambers at the City of Lakeville. The Utility Commission has reviewed this proposal and has made recommendation that City Council authorize the joint efforts and further that the Utility Commission and Council Members ', prepare questions which can be forwarded to the representative of the three cities, Moss & Barnett. This is believed to be the most cost effective and expeditious manner in whieh to acknowledge the transfer and address issues that we might have. Star Cable is offering to pay all reasonable legal fees associated for the cities under a colJaboration effort. RECOMMENDED ACTION: 1 . MOTION AUTHORIZING T0 PROCEED WITH JQINT REVf�W AND PREPARATION OF A NEW FRANCHISE AGREEMENT WITH MARCUS CABLE PARTNERS. 2. MOTION TO ADOPT A RESOLUTION AUTHORIZING THE TRANSFER OF CONTROL OF CABLE TELEVISION FRANCHISE AND THE ASSIGNMENT OF THE ASSETS AND THE FRANCHISE AS COLLATERAL. COUNCIL ACTION: 9 i ,� CONSENT RESOLUTION AUTHORIZING THE TRA.NSFER OF CONTROL OF CABLE TELEVISICJN FRANCHTSE AND THE ASSIGNMENT OF THE ASSETS AND THE FRANCHISE AS COLLATERAL WHEREAS, the cable television franchise in the City of Rosemount (the "Franchise") is currently owned and operated by Star Metro Cable, Inc. (formerly Metro Cable, Inc.) ("Franchisee") , a wholly-owned subsidiary of Star Mid-America IV, Inc. ("Star") , pursuant to City of Rosemount Resolution 1988-40, adapted on Ma.y 17, 1985; and WHEREAS, Star is a wholly-owned subsidiary of Star Mid- America Limited Partnership, a Wisconsin limited partnership ("SMALP") ; and WHEREAS, the Franchise was renewed in the name of SMALP by mutual mistake of City and Franchisee pursuant to City of Rosemount Ordinance No. XI.14, adopted on May 16, 1989; and WHEREAS, City hereby acknowledges and ratifies Star Metro Cable, Inc. as the Franchisee pursuant to the Franchise and the Ordinance;and WHEREAS, SMALP has entered into a Purchase Agreement dated November 12, 1993 (the ��Purchase Agreement"� with Marcus Cable Partners, L.P. (°Marcus") , a De].aware limited partnership, providing for the purchase by Marcus of all issued and outstanding shares of Star capital stock and the Rosemount City Council (the "City��) has received a request from the Franchisee for consent to transfer control of Franchisee to Marcus; and WHEREAS, Marcus, as the praposed transferee of Franchisee, from and after the date of the closing of the transactions described in the Purchase Agreement, shall assume and agree to perform each and every obligation of the Franchisee under the Franchise; NOW THEREFORE, BE IT RESOLVED, that the sale of the stock of Star, the transfer of control of the Franchisee and assignment of the rights, responsibilities and benefits of the Franchise from Franchisee to Marcus, or to any affiliated company controlled b� Jeffrey A. Marcus, is hereby permitted and approved; and � BE IT RESOLVED FURTHER, that the Franchise (and the related CATV ordinance) is in full force and effect without default thereunder by the Franchisee to the date hereof in accordance with its terms and conditions as set forth therein and that no breach has occurred or is continuing under the Franchise; and BE IT RESOLVED FURTHFR, that Marcus ma.y, at any time and from time to time, assign or grant or otherwise conve� one or more liens or security interests in its stock and assets, including 1 .� its rights, obligations and benefits in and to the Franchise (the "Collateral") to any lender providing financing to Marcus ("Secured Party°) , from time to time, that the City agrees that consent to a transfer is hereby deemed approved if the Collateral is assigned and transferred as a result of a foreclosure if Secured Party is the purchaser of the interest conveyed as a result of the foreclosure, that the City agrees that consent to a transfer from Secured Party to a subsequent purchaser is hereby deemed approved and if Secured Party is the purchaser of the Collateral as a result of a foreclosure, Secured Party shall have no duty to preserve the confidentiality of the information provided in the Franchise with respect to any disclosure (a) to Secured Party' s regulators, auditors or attorneys, (b) made pursuant to the order of any governmental authority, (c) consented to by the City or (d) any of such information which was, prior to the date of such disclosure, disclosed by the City to any third party and such party is not subjeet to any confidentiality or simiiar disclosure restriction with respect to such information subject, however, to each of the terms and conditions of the Franchise (and the related CATV ordinance) ; and $E IT RESOLVED FURTHER, that the consent to transfer herein provided shall be effective upon and only effective concurrent with the closing of the transactions described in the Purchase Agreement and Marcus shall notify the City promptly upon the closing of such transactions. ADOPTED by the City on this day of , 199 CITY OF ROSEMOUNT Mayor Attest: Clerk-Treasurer JEB:gev:KLBs t � F'R�C'ESS FOR THE SA�,E QR TRARSFER OF A CAF3LE SYSTEM IT�3DER MINNE�rA STAZ�J'FES SECTIOA 238 I • Parties to the sale or transfer of a Franchise shaZl make a written request to the tranchising authority for approval of the sale or transfer. A. This written request, however, is not final until the parties to the sale or transfer have cornpleted the necessary application forms and returned them to the franchising authority. _ _ B. The parties to the sale or transfer shouid be allowed a reasonable time (30 dags) within which to complete and return the application forms to the franehising ' authority. �. Ugon receipt by the franchising authority of the application forms, the written request from the parties to the sale or transfer is final. II. The franchising authority shall =egly within a reasonable period of time from the date of the written request by either approving the sale ar transfer or by determining that a public hearing is neeessary. A• A public hearing is necessary if ��he franchising authority determines that a sale or transfer of a franchise may adversely affect the companies ' subscribers . �. The franehising authority shall review the financial, legal, and technical qualifications of the buyer or proposed transferee. 1. The f ranchising authority shall also prepare a preliminary report to be presented to the Ci�y Council and the egistinq cable company, as well as the proposed transferee. III . Notice of the public hearing must be qiven fourteen (14) days before the hearing by publishing notice of it once in a newspaper of general circulation in the area being � served by the f ranchise. �- � _ . The notice must contain the date, time, and place of _ the hearing and must briefly state the substance of the action to be �considered by the franchising authority. IV. Within a reasonable time after the public hearing, the � - franchising authority shall adopt a resolution in writing �� approving � oz denying the sale or transfer request. This _ � _- .. � approval must not be y�reasonably withheld. � _ : . - �t � � �._.. . .�„-� �. r _ _ _ � � . _ . . __ _ _ . _ . _ - � � _: ...,; _;:: _ , : _ �, ,� , . _ �_�:__ _ , :,, ___ i X In addition, this resolution may make findings which include: A. Amendments to the Franchise Agreement incorporating the name of the new franchisee and any additional modifications which are applicable; �. Acceptanee of the agreement by the new franchisee; C. Guarantees made by the parent corporation of the franchisee; D. Other closing requirements including c,losing e�penses of the city, legal and consulting costs, and corporate authorization to enter into the Franchise Agreement; and E• Opinions of the franchisee's legal counsel. NOTE: The timing of the process outlined 'above and step5 to be followed may be modified based upon the need to evaluate issues in the Franchise that are unresolved and any necessary modifications to the Franchise. This is �best accomplished - through negotiations. Once the Applicatian is submitted to the City, the City will identify any such issues or modifications based upon current compliance by the eaisting cable operator with Franchise terms and contiitions and the response of the proposed transferee. 363Z140 � � - _ �: --.,- . _ _ -2- _ ._ ` � . I.ew Omcsa MOSS & BARNETT . � . . .A PROiTSfIONAI ASSOCSATION . . . � . . ��x 1•ura.0 mwww):au�uu 4800 NoRwEsr CBti'13x uv�u�.am+xi�cr wr�c:.cwe�x TAT'RtQ I.tWmRY � AIM Y.MM7lALL A13A!!G t1100t � � OQRT�IhAfW f[1TfNCX con�t vma woua�.��a�w 90 SotTilt SavsAt I'rtt STxart nw+us�c KvaMa ciwa+.r.o�uorm ►AUl V,tN VAISnff(11tC' Tlm.ia W�cRi7 j.►00'{A7L CtiJ4LOTOq . . SCOTC A•� waw.-.�nr,w�cwx .jv.ur L r+�n«i MtxxHApoLts. MIxxEso'rA 55402-4129 �r�oc xar � M.ICY7;^11LSOG � THOhlA3�j.SHs+y1'It . . - . .. . w�'�"r"�O7T a"�uw"� Ttisrt+orri (612) ?6?-0300 e�Lc�� °��' . 1�=L O'i�tIDt iwlti�Aw G.STUAfCT � � . . K G3C3�A tA7 KIILw C T�YDFt.Oit � r�us.c.xnwxH t�nva�r.Jn+oc:,:Tu TguCprffit (612� 339-fi686 r�vc:.sm�ass �+�t woax nwxm.J.cocoaccc �oavr�t R u�m� aenun wai�ux c rmcasr cwcrss n-c�m�x sn+emn t wvvrn�t�car �,auwc�o a.�uaaa+ Mrw.tK w.caara wvc r.m�on . �►�aa�ru ruHOMr c rs.rrctm �rats�.►�,�x.iuc tatu J.rart vcursxr J.s�+vrwvaai vnu+s M.wax . . OiA1t1J3 A f.V WM3.jti MR'OQ7.1 N.C07C � NANl.1[K Ic7�i . � � jwl6S N./LirMc6Y R+o+Acn l.Jawsorr ►aov.a l�a�un[:r , K��.� rcwKt,a�r i sr�sn '��w� ��� 347-03#(1 cx�utssip�ra Howar.aicox ��aouu.�mascx �caswaa�.maa wurncs coiscr aus�rtnasa Januarg 11. 1994 VIJ1 TELSF7►Y Mr. Chria Oace Cnble Coordinntor ._City of L3keville 20195 Holyoke avenue P.O. Boz 95? • Lakeville, t�i 55044 Be: Proposed Tra.nafer of O�nnerahip for the Cities of Farm3.ngton, Lakevilie aad Bosemaunt, Mianeaota Qur File Ho. 28381.1 Dcar Chris: Pursuaat to our telephone coaversatioaa, I have outlined belox my estimate for the tirne 2 �rill incur in reviewinq the propoaed traaafer froat Star Mid-American Limited Partaership {MStar") to Marcus Cable Partness L.P. ("Marcus"). I iatend to revie�r tha transaction betrreen •Star and Marcua and . prepare oae report rhich will be made available to each City. Ia thia xny I hope to save both time aad money for all pazties invoived. Obvioualy, certain steps �riil require specific consnitation for each pnrticnlar City. This is particularly true .ritll reapect to preaentationa I niay condact at each respective City Council and the greparation of unique doc�m►entatioa auch aa - closing documeats to the e:teat the tranafer of orsierahip ia ultimntely approved. Based on the foregoiaq tha falloxinq ia my eatimate far time on this matter. . �FOUIRED TI . TAS1C TO BE COMP -F'rFn ' - - 12 Hours . Bevie�., on behalf of Farmingtoa. La]ceville and BosemoLvat, FCC Fona 394, detai2s of the Star/Marcna �traasaction, ana re2ated information zeqarding Marcua qualificatioaa. 8 Hours 8eqvest and reviex supplemental infonaatioa regarding - legal, techniaal nad fiaaacia3. qualificationa of Marcua= fo11oM-up consultatioa xith City repreaantativea aa Mell as repreaentatives of the partiea to the traasaetioa. � � � � � � IviJSS & B 4RNETT • � A Pxotz:s�oN�r.Assoczana. Mr. Chris G3ce :��ge 2 . ' .i,.:uz.xy I1, 1�94 24 �o�.:� Pr�paration a� � tr�sfe� c�� o+dne-ahip r�p�st for r:.:-sn�l2r�ti:�:, ..�'r.e�i.31� :::�C? �tottea�o�t :�sarda.l�y �rc�poscd traasaction. 8 .=�u��s Prap�:at�a:., o: closing doc�::�a�ion far Farni��ton, La:.�viil� r.nd r�s�,oz::t i���uding� r�so?utio�.s fo� anv :- . Cao2e Caascissio,�.s z�ad/or City :Caunc�Is. _ -any .. necessa�y ordinr�ce arnenc�meata and acceptaaca aqreea►ents. 16 Hours Preparation for aad preaentationa before Fa�►inqtoa, Lakeville aad 8oaeaiosat City Cavncila re�gardiag traaafe�c � of oxnership report, cloainq documentatioa, �ay - recoam�endations regardiaq transactian, aad action to i}e tnken by City Counci2s. • Total of o8 haurs at billable rate of �i10 ger hour equala �7,480.OQ plus exnenses for travel, long-distnace tclephone, faz charges, photocopying, etc. As r�e diseussed via telephone, the Citiea of Farmiaqton, Lakevil�e and 8osemount, Minnesota are coneerned xith tb.e costa they iaay incur as a result of their reviex of this transfer of oxnership. fthile tbe Cities appreciate the need faz Star to transfer owaership, I undsratand the communitiea are generally quite pleased xith th� proqramcaing aad aervice pravided by Star. Further, xhile the Cities reqzet t�sat Star xiii ao lcnger be providiaq such service, they take very seriously their obligation to revierr the qualifications of the proposed.traasferee, Ma.rcus, to enaure �the saiae level of . service residents in each ccumnunity hnve come to ezpeet -xill be mazataiaed. To ensure this reviex is coaducted properly a.nd all necesaary l�xs and rec,slations are complied xith, the Cities have faund it necessary to enqar,e the services of Moss � Barnett to aasist them zn th.ia process. I have attempted to streamliue the process and the costa �rhich xi2l he incurred for the benefit of all parties involved. In that vein, and oa behalf of the Cities of Farminqton, Lal�eville and Bosemount, I plan to request that Star and/oz Marcus reimburse the Gities for the costs and expenses they incur as a result of the traasfer of oxnership. I recommend the Cities seek a xritten understandinq regardinq thia isaue from Star and Marcus. The fiqure �of $?,480.Q0 plus ezpensea repreaeata Masa � - Barnett's good faith eatimate of the time and feea it �rill iacur aa a reault of this traasaction. Zf additianal iasuea ariae duriaq the tranafar proceedings xe xill advise the Cities at the earlisat gossible apportuaity and provide an estisaate of any addstional time tbat a►ay be iacurred aa a result thereof. Otherxise,- the tatal amount of �?,980.00 plus ezpensea for reviex of the transfer of oxnership is a �igure xhich Mass & Barnett xil2 not ezceed in reviexing thia matter. a � � � � � � � � � MOSS & BARNETT • A Pnores,noNea.tissocuno►i Mr. Chris Oace Page 3 Jaauary 12. 2994 I have enclaaed for your conaiderntion aa Lnqaqa�sent lugreenent xhich �rill � 9'�v8m the ralntionship betxeen Mosa � Baraett aad t:.E Citiea durinq `thia n.atter. Pleaae ravie�► the kgreemeat and contact a�.. wi�.� queationa or < com�eata. �2ao, pleaae note that aeith.:�r Farminqtoa nor &oaamouat have yet determined to proceed aa I have autlincd above. Thua I an proceeding with preliminary reviar of thia matter on beha.lf of Lakeville until aa i:nderstanding xit.'ri the other Citiea caa be reached. Should you have anp queationa reqardiaq theae iaauea or if I caxi provid�e - auy additional information, pleaae do not heaitate to �antact ree. Very tru2y gours, I�SS � BI�iBTT --a Profesaioaal A,aaociatian ! . -�/l.�v'`.^ � � Bzia.n T. Grogna BTG/slo 70ZBTG .: Enclosure = cci Mr. Larr Tho � y mpson (via faz) Ms. Susan M. Walsh (via faz) ' � �. � R ; ► � 812Z140 E�dGAG��'T �,GREF..f��:T Thzs ::ngagem�enu Agrecmen;: sets £or;.h �h.; agr�PT?nt be4ween t`�e C3.ties o� �a.��n��o-., �a�:��•i�.:.e zL.d ���s�mou:�t, ;�z��sota ( c�.e "Cati�s`} , and ?�o�s � �azr.ett, A Pr��e�szonal :�.sso�ia�ior. ,._.., ! -::..ss � �a�a�:�.t" ; , ro.�cernzr� l�gal re�rese;:tation regarc�in� + ,.Y .. - �T��o��:� tr�:::�s::er oi owr.ership py �n3 h���reen �tar h�zd-A:•i?rican Limited Partners�ip dfb/a Star Cablevision ("S�a:. �) and Marcu� Cab�.e Partners L.P. ("M�x�iis") • . :':�ss � E:rr_stt• wil� re�-es�n� �h�� Cities wii:� �ri�n G����3an as t:�e primary a�torney and responsible attorney for all services . Other professionals in this office will likely pezform services on the Cities' s behalf in connection with the services reierer.ced above other than B�ian ' Grogan. Moss & Barnett w.ill use its best judgmer:t to determine the most economical use of its attorneys and staff personnel. 2. Tho Cities will receive an itemized statement of account from Moss � Barnett on a monthly basis, which summarizes the services rendered and the costs ar�3 eapenses incurred an the� Cities behalf. The Ci�ies agree that Lakeville, Minnesota and its cable administrator, Mr. Chris Oace, will serve as Moss & Barnett' s contact with �the Cities for all purposes including the delivery of monthly statements of accoun�. Bills are based upon hourly rates presently ranging from $30 to $185 per hour for word pracessing, legal assistant, law clerk and attorney time. WhilU the Cities will be billed at the rate of $110 .00 per hour for the serv�ces of Bzian T. Grogan, Esq. , time spent by other lawyers, law clerks, and Iegal assistants in the firm of Mass & Barnett will ?�e billed at ;�iie regular hourly rates o£ su�h employees. Tirne is billed by the one-tenth of an hour, w:�.:�ch is the minimum time charged for any serviee. Billed time includes aIl time spent on the Cities behalf in connection with the matter referenced above, including con£erences, telephone calls, draf�ing and reviewing of documents and rnemoranda, preparing and reviewing o� correspondence, negotiations, legal research, interoffice conferences, and travel to and from locatior:s away from the office. The Cities are r.ot bilied for secretarial time but there is an hourly chaxge for the use of our word processing system, if necessary. 3 . The Cities acknowledge that while there is a possibility Star and/or Marcus rnay reimburse the Cities for aIl or a portion of the costs and expens�s incurred in reviewing the proposed transfEr of ownesship, the Cities remain responsible for Moss & Barnett's fees and ezpenses in perforr.iing the services described herein, 4 . The Cities will reimburse Moss & Barnett for all reasonable and necessary costs and eap$nses incurred on the Cities behalf. These costs and eapenses include charges for photocQpying, long-distance tElephone cal.ls, de�ivery an� m�ss�nger serviczs, telecopying, �STI�W, travel, and food and lodging. f � 81:.'Z140 � . The periodic statement of account which the Cities will receive from Moss & Barnett will include a brief description of �ct�vity on the matter. The Cities will contact Moss & Barnett in writing within thirty' (30) days of receipt of its statement if the Cities have a question regarding any charges o�. its statement. If Moss & Barnett does not hear from the Cities, it will asssme that there are no questions ,. or problems . �t 5 . All balances on the Cities accaunt are due thirty � {30) days after the date of tre statement. Interest at the �� legal rate shall accrue on the unpaid balance of the Cities !c account �from �he due date. 6. This AGreement may be terminated £or any reason by ei�-,her the Cities or Moss & Barnett upon giving thirty (30) da;��s writt�ii notice �to the other. Zf such noti�e is qiven to Moss � Baznett, it shall iiamediately cease work. Al2 fees and costs incurred to the date of receipt of the notice will be paid to Moss & Barnett. Otherwise, there shall be no further liability to the Ci;.ies. 7. This Agreement contains all of the terms of thp services and £inancial arrangement between the Cities and Moss & Barnett and can only be modified by a written document signed by both parties. MOSS & BARNETT '�. A Professional Association ` 4 Dated: �` � Hy / _ Brian T. Grogan The City of Farmington, Minnesota Dated: By . Its � The City of •Lakeville, Minnesota � Dated: �� By Its .�. � . . . . . . ..4�£: The City of Rosemount, Minnesota Dated• B�, Its -2- � � . � , t.�w::r-n:es M (JSS &: B �4RNE 'z' T A PaotTss�orr�:.a_szocunow � Hr.w.uNJ.�nr..:�s mwwx )a.nwu . 4SOO,NORWF,.,T CEri"fER � �,�,��.M<crr�crrr ax:.wr.cRoci.rr � . 1'A-N�7 7 T..AfiYA':Y. . . �.,��v 1( rtEM.�i'.:.:. � .. S�JS�N G xNODt CORY:J.15T.�t R:'.Ti�Cw � � U;.:.:.:.:J£.W;TSL. M!C1;I.E:j.AS::�v . nQ.OL�1Ft S=YEi'��{�}y STF.LET � !}i.^_.y,�yM.!?'JG1Sn DnV1t:.P.D,:40XD 1:.:::.�'A.�YALRLriEi19.Ci FW:_:.�•.GAL`lS:P.' � * ?,( � / �1 / j.MIQ1M1i:GL:lJ:fIH SG']TA.As:..t:L.H x�:.,u.::.r✓..�.aewn �er��r�YLw.i�-1,n :,SL'�;ti�?9Q�IS. i�i1hI�::50Tn �j��v--�12Q rncr.;;..r M.:�:�:J�Y.EFS.::i. 1itOMA:J.SHRO"il:� � � � �JFA�iNE iL S:T.FSC7{ . � W AYNL A KT.wi.p';7 Dl.:.f M.W AGh'Uf � TE,rE?HONE �S I�2� ,�V!•d��� .KLSE L�,'T[/TQC O!���' )Au3E.O'V1'Y k�f.A4l.nG.STUAIC'.' � . . . . At.CECLL��_�Y I.l•1�.1'A\}iGDl1.0.4 rr:_c.xt:.,.h�+ r„�•.�.�-.��r�;,3.7zz TELECO?t� (012� 3 3 9•0 6 5 o rn�_r.sc.:..rreas a:�,.•va�wcvxx nw.�_ ; :�-.:..*a:: . .. . . . � � t�b.L v E_Y.Lr.h,-: � C::":SS:..J.C'.: . . � K1i"!k il r•.,i.1N .Fi F:rJ.J . -rac-.rr z y+t.�rss_vw�csa J.sx..nr�a�s.,��c h"L'..AF!1..X�^Lll ..'>'C F.S�vGi' ' � . tivN M.l(ZYl'l.�� iYf�aOM C.T.Y�Yttll � .M'.11w1.1 A MwUG i]t,^S).5lCL� �. � YD7'^II7T j./A3INLWDQ Yt�tN[W.MQSS . Cr1AR3231�TA7Cv3J15.Ii1 M.-.'C}iEL•X.l NAVCY Al T.SZLS � AML'!ilitMN[SS7 1 ra�.���.pKKsox MiOtAC7.6z. :Y NEL')1ASQSKf'Dti 5�+;.E`�1lSTA� ;oor�-�.u.n_� P.:�tixo_�: 347-0340 �+�.;,.,�L�o,.a �.Y�s.�z )x!'tus.tnxtic.� wc.tnnD j.r.z:t.rac � � . � h?_`i'LA'S DOlL�7 DIA:.ICUl46871 . . . . 3anuary lE. 1994 Mr. Gary Nadolsky Star Cablevision Group 254 Winne�ago Drive P.0. Bos ?:�6; Fond du La�. WI 54936-1167 �2e: Proposed Transfer of Ownership from Star Cablevzsion GrouplStar A:idAmerica Limited Partnership to Marcus Gable Partners, L.P. Dear Gary: Pursuant to your letter dated December 14, 1993 regarding the proposed transfer of osrnership betrreen Star Cablevision Group/Star MidAmerica Limited Partnership ("Star") to Marcus Cable Partners, L.P. ("Marcus") the City of Lakeville, Minnesota ("City") has engaged the' services of Moss & Barnett to assist in revieFriug relevant matters r►ith respect to this progosed transfer. 4+'hile the City agpreciates the need for Star to sell the assets of its cable systems to Marcus, the City also recognizes the importance of reviewing the legal, technica2 and financial qualifications of Marcus prior to approving the proposed transfer. If not for Star's proposed transfer to Marcus, the City would not be required to ezpend any funds on this matter. Further, the City recognizes the importa.ace of camplyinq with al1 applicable local, state and federal regula�ions regardinq a proposed transfers and therefare has - sought outside assis�ance to ensure the process is done thoroughly and correct2y. The City has discussed the proposed transfer xith the Cities of Farmington and Eosemouat, Minnesota to passibly share costs associated �rith the transfer proceedings between the three commun.ities. At the preseat time only the City af Lakeville has retained the servzces af Moss & Barnett but Z understaad the Cities of Farmingtoa and Rosemount are considering the matter thraugh the agpropriate channels. In that vein, I have submitted the enclosed letter to Mr. Chris Oace, Gable Coordinatar for the City, regarding the costs and egpenses Moss o. Barnett erpects to incur in reviewing this matter. The City, and IikeZy the Cities of Farmington and Rasemount, seeks . an up-froat understanding regardinq the transfer related eapenses involved ia this pracess. i h MOSS & BARNETT � �A PRO►PSSIONAL ASSOC7ATION � . . � � � � � � . Mr. Gary Nadolsky Page 2 _ January 18, 1994 For all of the above descr3bed reasans the City desires reimbursement for the costs and ezpenses iacurred as a result of this tr�asfer proceeding. The attached letter identifies, on a task bp task basis, the time and costs anticipated by Moss � Barnett. It is a qood faith estimate an the part of Moss � Earnett �rith respect to the total costs anticipated to revie�r the proposed transfer for all three communities. T2ze City desires a,n :•.cknowlzdgement oa the part of Star and/or Marcus reqarding reimbursement of the costs and erpenses incurr�d. xesolution of �his issue will likely qreat2p erpedite the trans�er process as this has been identifisd as a major concern bY the City. With resgect to •FCC Form 394 submitted to the City, I have revie�red its contents and relevant attachments an8 • require the additional information identified in the attached "Transfer Application" to cam�lete Star's • filinq with the City so that the City xill have before it ali re2evant information oa which to base a decision. Upon receipt of this additioaal information the City xill condact all necessary revisxs and schedu2e appropriate public hearings for consideration of the proposed tzansfer. The Gity intends to � abide by all local, state and federal laws reqardinq the proposed traasfer aad would greatly appzeciate any input or suqgestions an the part af Star or Marcus regarding the procedure so outlined. The City recognizes the importance for both Star and Marcus to espedite the transfer proceedings and therefore will sooa draft an outline of the ' events which must take place for approval. Upon completion I xill forward � this outline for your revierr and request that you contact me• at your earliest convenience regarding any sugqestions or modifications you deem necessary. I look fo nrard to ti+orking xith you on this ver i hopeful that I rrill be able to clarify the status af FarmingtonPandexosemount regarding transfer approval in the near future, Very truly yours, MOSS & $ARNETT � A Professional Association �.�'�it.bc��T• / I - Brian T. Groqan BTG/s2o .�:: 1342BTG cc. Ms. Jaae Bremer • ,,�, Mr. Chris Oace � _ Mr. Larry Thompson . Ms. Susan Walsh ' e r TRA14S� hPP�ICATIOR a�'OR THE: �'iPPRO'4'AL OF A C�APG� OF OfiriSERSHIP �F A CABLE Cd�ICATIOBS SYSTF�I+i �� FR�t�CHZSE � January 18, I994 Prepared by: Brian T. Grogan, Esq. (612) 347-Q340 = MOSS & BARtIETT A Professional Association 4800 Norwest Center 9Q South Seventh Street Minneapolis, �1 55402-4119 (These forms are not for distribution or other use without advance writtpn consent} o Moss & Barnett, A Professiona7. Association, 1994 � � �ODUCTION . At the time of aw�,rding the cable communicatians � franchise, the City of Lakeville, Minnesota ("City"} cons�dezed and approved the technical ability, financial condition, legal qualificatians and eharacter of Star Cablevision GroupJStar MidAmerica Limited Partnership, and its o►�mers. These same qualifications will be considered and reviewed as a part of any change in ownership. The �,pplicant is requested to use the following forms to supplement its already completed FCC Form 394 to infarm the City of the Applicar.t's legal, technical and . financial �ualifications. In a�dition to the qualifications, the Applicant is requested to identify any and all chan es to the cable communications System now serving the C ty p�the operation of that System or the franchise document. A copy of the franchise document is available by contactinq the City. In reviewinq a chanqe in ownership, the City will consider and review the legal, technical and financial qualificatior.s of the Applicant together with ang modifications requested by the Applicant. The City will comply with any and alI state ':or federal procedural requirements, The City will consider a formal application for approval of a chanqe in ownership to have been received upon receipt of the following infarmation. Please provide ten (10) copies of your response to this TRANSFER APPLICATION FOR THE TRANSFER OF OWNERSHIP OF A CABLE CONII4ItTN2C,ATiONS FRANCHISE to the f o l lowing address : Mr. Chris 0ace � Cable Coordinator City of Lakeville 20195 Holyoke Avenue • . ' P.O. Boz 957 • Lakeville, MN 55044 - The City ezpressly reserves the right to request additional information. - Please also provide two (2) copies of your response tos Brian T. Groqan, Esq, - . Moss � Barnett 90 South Seventh Street 4800 Norwest Center Minneapolis, NII� 55402-4129 1 � . :a � .. �;�.�.: �.��T� 0 7�T,7` ����r �.� �. . D'��1?;.�.''ic;t�,: jjr,laSS ��1� COY'iL�:�� O+-1=BT".•:1S$ ;_�cTL'1�GS� W.1=:_l ._.___.___._ - �_- t:S'=.'� IX: i:12�.3 � -%J.t.1C?,v .dX;� ��1:.'. L'��'i:''S .�..1S�E:C.'. 171 t!':.a S�,'C'".:AvZ :�ha�l �a�a t'r�e dollowing r�eani:�g: 1 . _ . � t�r.m "1._.:ili�L�." , ..._.. us�� �:+ z >`,__,:rcz ,:� ��.:-; .:��li�.�:^'c or a Principal of tne,�Applicanz, sr:.=_11 menn any Person ti�:at cirect].y, oz i�a�rec'_ _y, t:�rouqh or.e c:: i,10�8 _z1�i:.�Ii1aG�:aTz�'S, C�n�;.�O1S , :7:. i5 CGn��^:.�.�^ h�-, oT---.�s undF:r ccr.���..�n -:��nLio� �;� v:� th� .;^��=ic� _ �� t:�� ?�in:i�al a� zn� t�ppiic���L. B. The Term "Applicant" shall mean Marcus Cable Partners, L.P. C. The term "�erson" shall mean any individual, corporation, general or Iimited partnership, joint venture, limited liability company, trust, association, or other entity. D. ThE term "Principal" , when used in reference to the • Apglicant, shall mean (i) an� of�ic�r, director, or beneficial owner of five percent (5�) or m�re of any class of voting securities of the Applicant and aag Affiliates of the Apglicant, {ii) any Person who provides management or operational services with respect to the "System" (as hereinafter defined} and any officers, directars, or beneficial owners of five percent (5�) or more of any class of voting securities of any such Person, (iii) any general or limited partner of the Applican� or any Affiliate of �he Appl�cant and any officer, dirercor, or � ben.e�icial owner of fiv� percent {5$.j or mo_e of any class of voting securities of any such partner, and (iv) any Person wha or �nich serves in a capacity or stands in a relation�. ;:.ip similar to any of the foregoing. - E. The terrn "System" sha�l mean the cable communications System covered by the Franchise Ordinance awarded by the City to which this Application relates . 2 . Identification of Applican� A. Apnlicant Name Address 3,.r - /27/83 IS:52 'rAI B12 l32 51e5 S'^1.FZ C..�SL£VISIQN �'ra j � .��'iK' �;;, � �"" � !�' ' �`����� � ��'i�:.;.J���� � �{� ��'�+r���� ��_ -d �r��' • �"`� �� ����-- '�� �'���; `', ,����,� ""'�`,'' k.����' �,,..�..r - ._..,.,. S 2 • :"::wi� La ����J y,� . . . 1".,y�� 1 ��,J MC"` �a �j� . . . ��' . '�` jl 4,J.'..�'��." 8�'r{:�:�t �ar�..�+ ia��.���.i�� �r'ViS �.�+� � .J7 , C di+�J?�}'��!'.\'. �1 ifi 1w` � �t A� '�/�r1 L . . �i�L►A w �i-�. . �''�µ �.ti•.r... iltj i���w $' )Y!J J � . ,.aa� �...1 &.t::!�.{."..<.� D:� ruc�.��.�:,� r�.�._ h -: .,�_i: �:: ��„r �"3: �:.? :��t•.'� o:.:.�F•.'i:.�;:r:�f �'3f���:s3-Iv^sZ�i�„�� � , obl.,��ia.�r� hn��tsr �c�ar�.�d b� C�.t � �aY.a x z�z:.�.,, a .:. -,� ,. � ��9 3... r ..a..t9 Z'2'�... 'C,.�'�L,n.4 a..,f V... �...,,;3 G..�4.=�� �.:`QLt�'�G"a { ::2 c� ta� r`�ar_c�fs�e, �ri�h the �cIQ e,,.�-�c �- �.� ..... th.� fo�Za�ri�g: �-iaa c.. t�.; rv:�t�nua � � �r:.vi�i.on � - :v �„� ����c€� o� "bet cha,zus,��� . d�dicate3 =or pubiic ugo puraua�� to th� ��ag-` S�ctioa 7'j ° . _ � . . _:;,�� � _ t2) Contiau�d prcvi�;oa c! th� praduotiot� a� �4uj.red puz�uan� to th� P�aachi�o, 8�tctioa� • �3) Coati�ued F''�.miaet � - a►xk. m��!�t�ce o. t�� � c�aecti� rsc�uired pur�uant to tha F ssctions 4.07 �chi�e, � �.a�. . . - - ...M,_ . . . . _...._ . 8. Cicy her�by re�ievea Stas ot ita abiigatioa to z�ia; , " . a secur3�y �� Pur�uant to the l�ranchjs• � � BQc�iva 1�.07. ' ; t►• �..it�� �.Qa+aV� Z,�,LCZ�P L�� L[��Q+�v . a�� it�. � w� � � . . .... '_ . . . u�c������, to axt�a8 tha ter� c�_�� �''��ztt f1) y�� g� g+�::tua�i-�r I6, 1997 t0 ��ac�tia« },�r � .: . - . �__._ ltttmz � �Y 1. 19g3. ruazy S6'r2g98, •a� � �' �i� A�3reera�nt ia . . �xacuroci br city anct st�r sor . �o of camapro�de .th� eo,Ls �ag' aad enttlia,3 tha matters f�ly,� �,� . � it is �ess1Y underat8od sa���� , � '_ �t..thia , $e�.a coa,d,3t3oa h ::.._� ��nt eha22 sto� ca�st3t�tte pr � ���` °-•�. . �` � +��sica os a�• k�,�� or � � coa�atramd.�to ��.. • 'dsztc3a8 a�:' ��a�iest� `�s`� � �' �A an gdra�.a�ica ot the �duth or c "��=- e$ ' ' - .-._.....:: ai� or sll�g�tiona aasert�d. - �rz�aatae�a o� say►�;".• 3, � •a ns:et t�cc•xe•�� ..___ •. - • --- - -- _ t r CONCLUSION This is the product of brainstorming. This is not a recommendation that we follow through with any of these ideas. Some are much more important than others and we should :: �nsider any changes or alterations to the franchise as a package deal of give and take between Staz and the City Above all, any extension of the franchise term should include the requirement that Star define how they w:.I comply with ALL the existing franchise obligations currently in the contract. As I have pointed out, there are quite a few things that Star is already ohligated to do tha; we are not requesting be done. Ma�.dng changes to the franchise agr�ment should not be embarked upon lightly. However, if any changes are to be made, all possibilities should be considered at that time. The franchise states (section 9.01 D) that the advisory body shall submit a report a year before the franchise expires that includes a written appraisal of their performance along with following items: (1) Channel Capacity, (2) Channel for access cableca.sting, (3) Facil;.ies and staff as�istance available for access cablecasting, (4) Two-way capability, and (5) The need for further service to be extended within the Franchised area. Most of the points I've riised deal directly with these topics. These are the areas of Performa.nce that the writers of the franchise were most int�;rested in. Christopher Qace Cable Coordinator Christopher Oace Page 4 FRENEW 1.WPS . 4 � . . . . . . . . MEMORANDUM TO: Brian Grogan � FROM: Christopher Oace FII-E: QUESI.WPS � DATE; .Tanuary 14, 1994 SUBJECT: �uestions for Marcus Comr�unications and Star Cable � Please review and alter the wording of these questions as soon as possible. I would like to give a revised copy of these questions in advance of Thursday's meeting. I may come up with additional questions and concerns between now and Thu:sday also. l. How does Mareus plan on keeping the pay for tneir ca.blecaster (a Star employee) competitive with their other cablecasters at Star? Star ha,s reot g:ven John Morrison a raise in over three years. They are obligared to �rovide a cablecaster for 25 hours per week to work on the government channel. 2. How does Marcus intend to run ac;cess in a non-discriminatory manner? �What rules will Marcus place on who may use the facilities? Srar Public Access had a written policy thar denzes access ro those under�8 years old. This is viewed as a discriminatory practice whose motive is to reduce the use of access. 3• What are the job descriptior.; of the staff now employed for public access? What are their duties? Last year's agreemenr that led to getring the studio zn the new high school mwulated tytat access be mairrtained as is...Whc exactiy is the current status? 4. l�iarcus has stated that in their other systems, they use a outcomeJgoal based system to evaluate the performance of their access employees. What is that system and will it be implemented in their newly acquired Star system? 5. Star currently maintains all cable board members on a special annual billing rate, Will Marcus continue the same billing policies of Sta.r? There is nothing in �he franchise to support rhis staxa�s. However, Star o,,j�'ered a totally free "P" Palirical starus service. The ciry opted to prry for basic and receive the "P" service (the enrire packuge) 6. What is Mazcus's plan for im�lementing the new FCC customer service standards for their public access customers? 7. When and in what exact form will Marcus make their financial reports? With how much specificity? t �ar.�s� Au���. t�ph G�. i��Y"�t�(�.��OP of =� ��'�(�� � tro.i 8. Wh�t is Marcus's plan for ensuring access equipment is repaired and replaced in a timeiy manner? 1/ ' / , ��,ry��( ta ���� . �a �;c. ��.c�iau. � 1 } ��saF���v�x TO: B�b r ric::son �=JC'��'-• C!1::Ji %;:�,;r DeC.':: s3:�,TE: 12/1/S2 rnt-� �}-+ r Sj�.c%�!:...Cl: •:�:���ctior.� 1�~ I12:'rniCu :a���yl�n.r:��i?$ii)n C�"?r'c��$ I:� reviev�;,^Q the ��nc�-+�s� znd noteS f:Ori7 tYle 12ct I��� yP.zrs, I've p�zt to^.�her s�ti;�� . �C` RO��'��� ��<'..� r�1P.1�� t.no t o .�n ♦ y �-1 u I a ' •1�� .�.,�s :or �, � �r�.�chis., could �e s_,.,n��:'? ne�.. I hati-e r_o��� �ner• th., `on�:, ::.:�?'S .'_' 2 SY'`�IIl:. i;:C','iS1Q:7 C: u:_ ii�::i?1SZ. SC':T:� SU�a::S'.:�7::5 t;�,� :l0 r��2.:P.�7 1%.'^vi�i. t�e cu�:ent francr::..�. I make no ::iaims o`er,�::�rce4�;liry with any items on this list. T'rss'is j�,:st a partial wish list of topics that I see room for improvement. SYSTEM DESIGN -joint trenc':�i.�a shauld be mandatory, perhaps a permit would be necessary if tn�y dig separately from other utilities - better defuu::ti.� of section 4.44 "After service has been established by activating trunk cables far any area, franchis� shall provide service to any requesting subscriber within that area withi.r: 90 days fr�m the dat�: of the request." Define "Activating", and "for any area". - The two-�al• capability has no timeline for implementation. If we are not going to enforce it, we could use it to trade away. If we ever try to enforce it, they are in clear viol2tion with the existing system but with no timeline for en`orcement. - S��StPr� test resul:s s�a� s b� au�omatically forwarded to the baard. Currently the r��a:d can ask far sw��ps, but �i::�e St.:s does them somewhat automatically, we may jus:;�ran� ti-�em to forwasd them autorr.atically. - Accentable leveis of si;nal leakage before Star could impo�e a charge for additional outlets. Curr�ntly, Star char� :s for addidonal outlets beca�se they want more control over the number of active outlets �: a house. They say that the FCC will fine them if they exceeci the allowed level. To :ny �owledge, the FCC has rarely enforced this requirement and it is just being used to ch�.:;e more for rninimal service delivered. Perhaps there could be a test for signal leakage and a cost for repairing that reflects the actual labor involved. Perhaps a one time only cost for installing additional outiets and no monthly cost that assumes there is leaJ�.ge. - Monthly reports of camplain�s and outages and their reasons. -Monthly report of "non-ins`,alls" or people re�uestinb cable hst denied due to line extension provisions. Christo�her Oace PaQe 1 Fr�F'�T�.Wt wpc : � I } - Provision for City employees or contract companies burying unburied cables "drops° and billing Star if, after a certain time, the cable is still strewn across someone's property. SERVICE PROVISIONS - Change or adopt Ianguage in rate section that matches the new 1992 Cable Bill. Sutce 1984, tne City has not been able to enforce any provisions of the rate control section oi the franchise. Some or the wording would work with the new bill. If we could strike the unenforceab':e sections and enforce the some of the current sections, that might give more enforceability to the desire to re-regulate the basic tier. - Estabiish customer service standards b,� ordinance that are at least as strict as the NCTA (National Cable Television Association) Voluntary standards. Many complaints concern unresponsive action on Star's part. We currently have very little to say about haw Star treats it's customers. - The r uirem.ent for two way capability extends to non-voice return communication in sectxon . Their current system does not provide for this. If this Wide Area Network provisio is no oing to be enforced, we should trade it awa for some ' / � Y th�ng we want. - The city should have the ability to add a bill stuffer into the cable bills if the information concerns Lakeville Cable TV subscribers (must be cable related info) - The iastitutional network was a requir�ment of the franchise that has not been invoked. Either we should ask for a timeline for it's construction or trade it away for something we want. COMIY.[1;TNTTy ACCFSS CE[��NNELS - Access channel �edication should be described in Megahertz rather than actuai channels. With video compression, many channels can be sent in the same megahertz bandwidth that one channel occupies today. This allows for the future expansion of PEG channels within the agreement. - A. distincf�on should be made between character generated "program.ming" and video "program.m,ing", This is imgortant when dealing with channel expansion - The procedure for rulemaking needs to be clarified. The franchise states that Star shall "establish rules, subject to the approval by the Franchisor, pertaining to the aczninistration of the specially designed channels..." Even though we have formally asked Star to change certain rules, there is na clear-cut procedure for imposing the wording we want. Christopher Qace Page 2 .FRENEWI.WPS I t i - Eitlzer "State of �he Ar:" needs to be dei'ined or speci�►c equipment must be a�reed upoa at f�:e tu��e of th� renenoti�tion. Also defineti �hould t�e "F;.�uipmer�, and t=�rsoai�el tlz.C.;;531`�' iC�. inC P'QdllCil07 �iG�i2:1:P."::•.� �:_ T., �.� .�� �. �• � •t,P 1. t r , 4 t�la ac}:.. 1.'ho d �ermine� .�,,, �ti•e. o. ,i:.:ii� 1�:� �ii!1c;S Of ii� "✓:OciUCi1U:1 CGOiQ.;�cCQf'� a.`�cCh S:�?�:i0 S�CU:I� ciC� �;; cefin�c'. i�p..ed is c;�::�n�ly deiinrd b 1 suoscr.be; gestior. of lU� or I��s than SOG si�natures (ahout �00 �c�: I.�:�;v�lie). Th:�u�'�� t��:e �it�� c�: c�.�r�;::.�e r�:.�, is .,s�te o. i't;� �" th�re is r_o T provision �or �uaiity of p�rsonnel or competency. � - ���L t�•pe of Zn�ual reriew P:acess s��ilar to �;��at a n�n-�:r*it has t� �c3 t�rou��: t� i:>:: i:'21I' COL::��1C; ;CuC::rt'Ct�. 'rr'�ii; t�.�, i:Fi?]C�?2S?p. p.S TOiI� c.S .SisT 1S i' ''. ::�•t + �;,, r..sy�::>=��e fo;�u:��., access, th �e should be som� w•ay tnat the cities can objecti��ely revi�w thei►-compet��^�. - A capital grant for equipment or facilities for public access. Since money above and beyond the franchise fee cannot bo for operati�ns, a capital grant with a timeline for replacement (cr at least review) should be agree�i uvon in the franchise. The va;ueness in the franchise only h�lps the group responsible�or taiang the action...t��e cable comgany. CONSTRUCTION OF T'�SY SiEI�'i - Customers who complai.n about the location of the ped�tals shouId be toid the City has the right to help resolve disputes over the Iacation of the boxes. City has the right to control placemen: of the cables and equipment in the right of way. - Provision 8.03 concerni.ng the Iocation of cables so as not to "enda.nger or interfere with the usual Use of the streets and public places" should be cited and applied conce;ning unburied drops in yards where children are apt to trip over said czbles. , - Agreemen�s between Star and customers wis�i�b aerial rather than buried cable should be sent to the City for approval. (rare but happened last week) � - Section 8.11 concerning extend:ing service needs to be strengthened and defined. it reads "The F_ranchisee shall extend its system into an area if there are at least ten subscribers per one quarter mile of trunk and distribution cable." We cunently allow Star to use distance from the Iast active pedestal to define distance from "trunk and distribution cable". You suggested some other form of cost sharing with the developers. Either way, this area will be growing for some time and we need a better line extension policy, or more enforceable at Ieast. -Better definitian of terms "trunk" and "distributian cable" in Section 8.12. It states "Franchisor shall install trunk and distribution cable in all new subdivisions." Does dis�ibution cable include cable from the pedes�al to the house? Often this is put in only when people sign up, disturbing their yards. Christopher Oac� Page 3 FREI�TEW l.'��►TPS � } State Incarporat�d Partne�-shzp _ ' _ �ro-�rzeto��}:�� o�her (�'d�r��:.fy) Date o� Incoracr���:.ion of Formation $. 7�A+��-' �1C:��lt� _..< p'_i i"ir'1'J'r.� S ;: .:.s�. ide:;.i�y all Drincipals of the hppl�c�rt, s�ating trpir names, �heir re2ationship to the App�icant or its Affiliztes, and/or the capacity in which they serve the Applicant or its Affiliates. C. Basis �oT Acvuirinct Ownersh��. Zndicate �,-hether ownership was acquired at same per-share co:� as other owners; and if not, whether services or other in-kind contributions are included as a basis for acquiring ownership. D• 3u-:-0� . P.�reer�en�,. Indica+�e wnether a �uy-out agreement e�ists, whether written or verbal, givinq other stockholders or the organizati.on itself the righ� to acquire the interest of local stockholders in the future. If such an agreement does ezist, describe its terms and conditions or attach a copy. E. Ownership in Oth r Cammunica �,ions Me��. Indi�ate whether the Applicant or any of its Principals ho18 an ownership interest in other mass communicatioas media (defined as television stations, common carrier or television network) in the cable service territorg. �`f ! f State Incorporated Partner.shi� _ ' ri0?�rlE.'t0?':�}??� Other (Iderttify) _____ Date o� Incorpor•�':.ian of Fo=mation B. I�,��„�.ficatio _'f �r;ncit�als �=w :.as�. ide::;.i�y all nrincipals of the Appli.cant, sLating their names, their relationship ta the Applicant or its Affiliates, and/or the capacity in which they serve the Applicant or its Affiliates. C. Basis fQr AcQuiring (Zwrie,�shin. Indicate whether ownership was acquired at same per-share co.t as other owners; and if not, whether services or other in-kind contributions are included as a basis for acquiring ownership. D. �uy-��� A�re�ment. Indica+�e whether a buy-ant agreement e�ists, whether written or verbal, qiving other stockholders or the organization itself the right to acquire the interest of local stockholders in the future. If such an agreement aoes ezist, describe its terms and conditions or attach a copy. E. Qwnership in Qth�r Communieations Med�,.�. Indicate whether the Applicant or any of its Principals hold an ownership interest in other mass cammunications media (defined as television stations, common carrier or television network) in the cable service territory. i � � F. �ocal RevrPCA„+-at-;� Identify alI non-ernployees that may represent the - Applicant in these proceedings, includinq attorneys, agents, lobbyists, etc. G. �ultinl Svst-�m� Overa nr - Will any of the Applicant's Principals guarantee the papment and performance of the Franchisee' s obligations under this franchise? 5 , . .��"C2'i�IG^� ��T_F'1�T�� 1.. �1�...�.,.+- "—.^.s:�r-'r„ `,,S '�- .- - 4:.:�[.. . � List be7.cw cab�e �or,sn� icatior:s S�st�:ns owned, cperated or c�ntr�ller� b�: the A:�i�ca:.� or a�y Princi1-a1 of �he h��li��r.� . • � ! ���.e xra::�:�:.se � �kard (in�icate Municipalit��, with x if this Number o€_ Name of Contact Person is a �2enewal or Current Franchise holder Phone Nu.rsber Eztension) Subscribers I � , � 2. F�_ ��'ranch_ i s.� List below every community where the Applicant or any Principal of the Applicant has received a cable television franch�.se o� operated a cable Systern and subsequently disposed of all ar a majority of its interest in such franchise or S�stem. Name of Community Date of Date of Reason and Franchise Holder Contact Franchise Franchise Manner of or System Holder Phone No. Award Disposition Disposition �_ 7 .�� �U J rt S J f.� � ' ..t �Q �� U O (a i'i�a� t!! ,t� ',�'.� .0 O Qy a �� r�o O U L1� �if tv �� a ►: i-�W �'� �d o '''' � �,� .1-� lt1 aJ V1 � � y .1-� 4� S-� •rt O rt ���� � U .� ti � W � � rl . . . .. . . .. .. � . . � . � . � �J U� }a �C7 �E� � '[f O � d i1 4� a� V1 . 1.t rt: la � . ,��, E: m � � r•�.' A � cn � :.i O 1�1 t%+ V1 }� N i� 'v9 i�� � � ��� N O �''-+ . i= � �� O � ,u U) U Q) •rl � .� QS .1� � u,I N � Q'A � U , . .� . .�! ,� � (a.� � � . . � � � •rl p� `� � f�� �' .r � � Q� O t/1 y.l•� O N .� t) 1� C' U � •t1 N �: '�� �U , N U , . �. �. w+ �n .I iu �-�i 0 � 4' � A �' ' 41 • � r{ rl O� Q) N .� ,r •� n�rl .. •ri tU t!1 , . � � Z)•r1 5�1� i'Y Q� . - � . � . Q .J.1 �i' .{J QI � -�-� .Ci N . . . . V1 •r� v'1 �r' •r4 V •rl JJ •rl lJ �i .s � [: •r•1 ..: .� . . � � � . a a a� •�+ o � .t: u rn - � ;xC :.� E, ro O U � t•i U] . �? •��t s�, cY) -- ,� . � � 4 . �rim�nai ProcPPr��nQs Has the App2icant or any Principal of the Applicant ever been convicted in a criminal proceeding (felonies or misderneanors) in which any of the following offenses were charged? �..�t �Q A. Fraud, bribery, eztortion " or embezzlement B. Taz evasion C. Perjury, jury tampering, obstruction of justice, or . other misconduct affecting public or judicial officers ' performance of their public duties. D. Fal;;e, misle�ding or deceptive advertising E. Anti-trust violations, state or federal F. Violations of FCC rules and regulations G. Conspiracy to commit any of the foregoing nffenses 5. Disposition of Criminal CharQes . If the answer to any question above is affirmative, attach a separate stateme:.t describing the Person involved and the disposition of each criminal charge, in�luding the date, court, sentence, or fine. - 6 . Givil Proc -PdinaS Has the Applicant or any Principal of the Applicant ever been a party to a civil proceeding in which it was held liable for any of the followinq or is now a. party to the proceeding? �.� T�Q A. Unfair or anti-campetitive business practi�es 9 ,s � . r, B . A:�ti-t-���st violations (sta�e a�d `� �ra1) including ins�ances in ��hich consPr.� � GaCrCns wsre entered into � � � C. violatio_�.s of securities 1z�,•s (:tate ana feder�l} D. False, mislea^inq or deceptive `dvQr�ising _. k'=oi.�`i.oi:s of FCC r�I.es ar.d reg`1?a�iCriS 7. Disposition of Civil PrQceedina� If the answer to the above is affirmative, identify the Person- : involved and Qescribe the nature of civil proceeuing` and its disposition. 8. Business Licenseg Has the Applicant or any Principal of the �pplican� ever had a business license (defined to include FCC licenses, broker-dealer, alcoholic beverage and restaurant ?� �ense, etc. ) revoked, suspended or the—renewal thereof der._�d, or is Applicant or any Principal af the Apglicant a party to a praceeding that rnay result in the same? If so, identify the Y;.�siness license wr,ich has been revo}�:ed, suspended or not re:��wed and oiher relevant information regardinq each such license. 9 . Cable Franchise Violations Has the Applicant or any Principal of .the Applicant ever, as the result af an adjudicated proceeding, been .found ia violation (other than routine service complaints) of any franchise ordinance or agreement, contract or =egulation governing ang cable communication System owned or operated by them in the State of Minnesota or elsewhere? Zf so, identify the nature of such judicial or a3.-3inistrative proceeding, giving the garties, the date, name of tribunal, and result or disposition of that proceeding. . � � . 10 . �ranchi�i na A»tt,�,-;t-•• 7; �;Qat�on Has the Applicant or any Principal of the A�plicant ever "� initiated litigation 'against a franchising authoritg or has a franchising autharity initiated litigation against it? If so, id�ntzfy the franchising authority involved, the court or administ=ative agency in which that litigation was docketed, the nature of the controversy that was the source of Lhe litigation, th�� disposition or result of that litigation, and any other relevant facts. 11. Chanaes to hP SystPm Is the Applicant proposing or will the Applicant undertake any changes in the System, includinq, but not limited ta, the following areas: system upgrade or rebuild, equipmen� or facilities changes, maintenance or testing procedures, interconnection with other Systeias, institutional network, etc. Please describe- in detail. 12. Chanaes in the O�eration of t-he Svstem Is the Applicant proposinq, or will the Applicant undertake any changes in the operation of the System including, but not limited to, the fol3owing areas: rate increases, programming changes, changes i.n lacal origination or P.E.G. access, financial support of local origination or P.E.G, access, changes in orqanizat�onal structure or the number or location of local origination or P.E.G. access channels, customer service practices, - billing practices, personnel, marketing apptoaches, etc. Describe in detail. 11 . � � . l3 . �hanv�s �o �he Fr�nchi�e Is th� Appl.ican� zequ�st_-..g cr ��il.l the Ap�licant recru�s� a:;v cnG�ges t� th� frar� _:is� doci:ment (�vail.a�i� t:+�•�uga . , �=:? �':.L� / • �eSC�l}J? �n �.-.�nl... . 1w -� . h r Describ� in detail any other information that you believe woula assist ti:e City in review and approval of the change in ownership and not otherwise covered in response to oth� r questions in this Application. ��,� � iz A �. ` � . . � . � FINANCIAi, Oi1A1,IFICATION� 1. The Applicant and its Principals needs to prowide ptoof of . financial qu�lifications by providinq the following (t� �� e��ent not aireadv inc2udp�3 aS part �f FCC Form 394 .�-��g.) • A. Annual Profit and Loss State�ents for the most recent three to five year period. B• Annual Balance Sheets for the most recent three to five year period. C• Annual Cash Flow Statements for the most recent three to five year period. D• Loan Agreements or a Commitment letter. E• A description of all sources of financing : with sugporting documentation for each source. For ezample, for wlimited partnerships, a praposed prospectus or o�fering circular; for a public corporation, registration statements and ail othez forms filed with the SEC. F• Pro forma Projections of annual operating data (i.e. homes passed, subscribers, rates, etc. ) for the life of the franS�hise. �� � �� � � G• Pro forma Projections af annual revenue and operating eapenses for the life of the franchise. H• Pro forma Projections of annual capital ezpenditures for the lif�� of the franchise. I . Pro forma Projections of annual cash fiow for the . life of the franchise. 2. Star nee�s to supply the folloc�ring financial infcrmation for the past three (3) years of operation: � A- A statement of annual operating resul�s including households passed, basic service subscriber counts, PaY �'�7 subscriber counts, and � subs�riber rates. Monthly operating results for the most �recent twelve month period should also be included. B. Annual Profit and Loss Statements ineluding the operating eapense detail for the balance of the f ranchise term. C• Annual Balance Sheets. D• �Annual Cash Flow Statements. 13 • � . y ����er,� Finar^=al Goa��> Doe� th� �yst�m no�Y servi.ng �he czLle se:-vice territory me�t the z.•::alica:�i ' s `in�r.cidl c:;als? `r�:n}- :.ow? Z= no�, ci� �uss _n c�¢tail 'r��w ;:!�e f: za�z:- ,.�_ ne�fcr:;��n:� cr :.ne Sy�:e:, wz�:.1 be :.m�ro°�eu. i:ny d:: �c�ss�on s'r.ouln a?so set fozt'r. zny ope�atir�g assu.�ptio7t> ±ncludi.ng, but nat limited to, t;�e �0.�..'.^'r:�.Il�: T�GLE ��]C_'c?8525� 1'-7L:�ieS� :-3��5� 17r.ri SO'.IiC�S Q: ret anue, mar):�;.ing, cor.salic�a�ion, etc. 8?7Z340 _ ; I��