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HomeMy WebLinkAboutResolution - 88-267 - Approving Join Public Hearing Before the Southwest Suburban Cable Commission on Proposed Transfer of Ownership Relating to Cable Communications Franchise - RESOLUTION NO. A RESOLUTION APPROVING A JOINT PUBLIC HEARING BEFORE THE SOUTHWEST SUBURBAN CABLE COMMISSION ON A PROPOSED TRANSFER OF OWNERSHIP RELATING TO THE CABLE COM4UNICATIONS FRANCHISE FOR I'HE CITY OF EDEN PRAIRIE WHEREAS , the City Council of the City of Eden Prairie ( "City") is the official governing body of the City; and, WHEREAS , the City, in association with the Cities of Edina 1 _ Hopkins Richfield and Minnetonka. ("Member Cities" ) formed the Southwest Suburban Cable Commission ("SWSCC") , a joint powers commission; and, WHEREAS, the City, in association with the other Member Cities, granted a Cable Communications Franchise ("Franchise") to Rogers Cablesystems of the Southwest, Inc. ("Rogers") ; and, y WHEREAS , Minnesota Statutes Section 238. 081 , Subdivision 5, authorizes the City to delegate authority vested in it to grant, administer, and enforce the Franchise; and, WHEREAS , Article XIII , Section 3 , of the Franchise authorizes the City to delegate from time to time certain rights or obligations under the Franchise to the SWSCC; and, WHEREAS , Minnesota Statutes Section 238. 083 provides that a public hearing may be held in the event of a proposed transfer of ownership of the Franchise; and, WHEREAS , Rogers has proposed a transfer of ownership to KBL Cable, Inc. of the Grantee of the Franchise through the transfer of the controlling stock interest in an indirect parent corporation of the Grantee; and, WHEREAS, the City, in cooperation with the other Member Cities, wishes to hold a joint public hearing to consider the proposed transfer of ownership pertaining to the Franchise ; and, WHEREAS, the SWSCC through its Operating Committee has recommended to the City and the Member Cities that a joint public hearing relating to this proposed transfer of ownership be held on behalf of all Member Cities on November 30, 1988 , before the SWSCC at the Edina City Hall beginning at 7 : 00 p .m. ; and, WHEREAS, legal public notice of said public hearing shall be published inviting any interested person to discuss the legal , technical and financial qualifications and character of the proposed transferee ; and, WHEREAS, this public hearing and legal notice shall be in satisfaction of all state and local public hearing requirements related to the proposed transfer of ownership. NOW, THEREFORE, in a regular meeting assembled of the City Council of the City of Eden Prairie the following was resolved: 1. The SWSCC is requested on behalf of the City, in cooperation with the other Member Cities, to hold a joint public hearing on the proposed transfer of ownership of the Franchise on November 30, 1988 . 2. Legal notice of this hearing will be published by the SWSCC pursuant to the requirements of state and local law. 3. All interested persons in the City who wish to attend or participate in the public hearing on the proposed transfer of - 2 ownership of the Franchise are asked to attend the joint public hearing on November 30, 1988 . 4 . The foregoing notice of public hearing and public hearing shall satisfy all state and local requirements pertaining to this proposed transfer of ownership of the Franchise. This Resolution is passed and adopted the ;�;1� day of 1988 . ,i CITY OF Eden Prairie ` The Mayor SW2 11/4/88 i I I i 3 STIPUI ATION OF SE IJMENT AND RELEASE This Stipulation of Settlement and Release ("Stipulation") is entered into this day of s,' '';) };;,�;'.', , 1988 by and between, the City of Eden Prairie, a Minnesota municipal corporation ( "City") , and one of the Member Cities of the Southwest Suburban Cable Commission (the 10SWSCCf1) , Rogers Cablesystems of the Southwest, Inc. , a Minnesota corporation, ("Grantee") Grantee under the Franchise which was granted to it by City, Rogers Communications, Inc. , ("Rogers" ) , a Canadian corporation, Rogers Cablesystems of America, a Delaware corporation, and Rogers U.S . Cablesystems, Inc. , a Delaware corporation, guarantors of Grantee (herein together called "Rogers Subsidiaries") . WHEREAS, Rogers has agreed to sell all interests and holdings in its U.S. cable systems; and WHEREAS, Rogers and the City agree that KBL Cable, Inc. , a Texas corporation ("Proposed Transferee") should assume all Rogers' responsibilities and liabilities related to the Franchise on and after the close of transfer ("Closing") ; and WHEREAS, the transfer from Rogers to Transferee shall be effectuated through the transfer of the controlling stock interest in RCA Cablesystems Holding Co. , the parent corporation i of Grantee; and WHEREAS, while the Grantee of the Franchise shall remain the same, Proposed Transferee shall on and after closing of the transfer of ownership from Rogers to Proposed Transferee, guarantee all responsibilities and liabilities relating to Rogers and the Grantee and Rogers shall be released and discharged from all responsibilities and liabilities for its actions and the actions of the Grantee occurring on or after such Closing; and WHEREAS, the City understands that Grantee and Rogers agree that the terms of this Stipulation shall not be effective unless the Proposed Transferee enters into a guarantee agreement on or before the time of Closing guaranteeing Grantee's performance of the Franchise as amended, this Stipulation, the CATV Relief Ordinance as amended, the Performance Agreement as amended, and compliance with the acceptance terms of the Franchise; and WHEREAS, Rogers has requested that the City extend the terms of the CATV Relief Ordinance as amended by Exhibit CC approved by City and other Member Cities of the SWSCC to Proposed Transferee after the Closing; and { 1 WHEREAS , in consideration of the extension of the CATV Relief Ordinance, Rogers has made an offer, included in a letter dated August 18 , 1988 , and attached hereto as Exhibit AA; and WHEREAS , it is intended by the acceptance of Exhibit AA by City that continuation of the relief provided for under the terms of the CATV Relief Ordinance as amended by Exhibit CC will continue after the Closing based upon the following Exhibits being complied with by Grantee, Rogers and Proposed Transferee: Exhibit- BB - Proposed Resolution Exhibit CC - Proposed CATV Relief Ordinance Amendment Exhibit DD - Proposed Amendment to Performance Agreement; WHEREAS, in consideration of payment to the SWSCC in the sum of $3 . 5 Million (U.S . ) , City, along with other Member Cities of the SWSCC, agree to the approval of Exhibits BB, CC and DD, and agree that the waiver or deferral of certain Franchise requirements shall be approved and that Rogers and the Grantee shall be relieved of any further liability or responsibility for completion thereof; and WHEREAS, upon compliance by Grantee of all of the terms and conditions of this Stipulation and the attached Exhibits, the payment of $3. 5 Million (U. S . ) by Rogers to SWSCC, and, upon execution between the parties of this Stipulation and Exhibit DD, the relief provided for by City to Grantee in the CATV Relief } Ordinance as amended by Exhibit CC and Exhibit DD will be continued after the Closing; and WHEREAS, Rogers seeks a release from liability under the Franchise by City, effective upon the date of transfer to Proposed Transferee. WHEREAS, the City and Grantee make the following acknowledgements 1 . By City: As of the date of this Stipulation and except for the waivers and deferrals provided for in this Stipulation, City has found, that to the best of its knowledge, Grantee is not in violation of the Franchise; 2 . By City and Grantee: As set forth in Article }III , Section 5 , and Article XIV, Section 2B, of the Franchise, any previous, current or future deferral or failure of the City to enforce prompt conpl fiance with all provisions in the Franchise does not constitute a waiver of the City's rights or obligations to enforce compliance in the future; further this provision does not relieve the Grantee and the Proposed Transferee of any obligations they have to comply with all provisions of the Franchise, except as such obligations are amended, waived, or extended by this: Stipulation and the CATV Relief Ordinance as 2 amended. Upon transfer of ownership and control of Grantee by r the stock purchase to the Proposed Transferee, the City shall again be entitled to enforce prompt compliance of any obligation and any deferral or failure to enforce the then existing obligations by the City shall not constitute a waiver of the City ' s rights or remedies ; and 3 . By Grantee: That Grantee is not, to the best of its knowledge and except for the waivers and deferrals provided for in this Stipulation, in violation of any of the terms or conditions of the Franchise and all requirements of the Franchise are being complied with except as identified by this Stipulation. NOW, THEREFORE, based on the foregoing mutual agreement and negotiated settlement between the Grantee, Rogers and City and upon compliance by Grantee and Rogers of all of the terms and conditions of this Stipulation, it is hereby mutually agreed that: 1 . In consideration of the Proposed Transferee' s guarantee of Grantee 's performance which includes the execution and delivery of the agreement pursuant to paragraph 5 of the Stipulation and in consideration of payment by Rogers of $3 . 5 Million (U. S . ) in immediately available U.S . funds , wired to the SWSCC account, First Bank Minneapolis, Account No . 602--3377-564 , for the benefit of its Member Cities, at the Closing between Rogers and its Proposed Transferee, City agrees to the following: a. Continue after the Closing =.n accordance with the terms of the CATV Relief Ordinance as amended , evidenced by Exhibit CC and the Performance Agreement as amended as exhibited by Exhibit DD, to the Proposed Transferee of Grantee; b. The "Waiver of completion of the minor Franchise offerings" as set forth in Exhibit EE hereto; C. Deferral for negotiation with the Proposed Transferee regarding compliance with liability insurance requirements of the Franchise ; d. Waiver of its right to review for purchase by City and right to purchase the cable system prior to transfer of control of Grantee of Franchise to Proposed Transferee; and, e. Waiver of reimbursement for costs in connection with the Stipulation in excess of the amount paid to the SWSCC by Grantee and Rogers . 2 . Rogers and Grantee shall. complete enhancement of the - 3 - Residential Network as described in the report of the Southwest Institutional Network Group ("SWING") . The cost in implementing the SWING recommendation is approximately $34 , 000. 00 , of which half, but not more than $17 , 660 . 50 shall be paid by all Member Cities . Rogers shall pay the $34 , 000 . 00 total cost initially, and the City' s portion of the cost shall. be repaid to Rogers at the time of the payment of the $3 . 5 Million (U. S . ) on condition Grantee complete this work prior to the Closing with Proposed Transferee . If this work is not completed at the time of Closing, the estimated cost shall be held in escrow by SWSCC at the Closing and distributed when Grantee completes the work. 3 . This Stipulation shall be effective only if the City and all Member Cities of the SWSCC have approved it and its Exhibits, and each are accepted by Grantee and Rogers . The terms of this Stipulation shall be effective for six (6) months from the final date of passage by all five Member Cities of a resolution approving settlement, and may be extended by either Grantee or SWSCC for an additional six (6) months without further consideration. upon payment by Rogers of the. $3 . 5 million (U. S. ) described in paragraph 1 of this Stipulation and as a condition of approval of the transfer of ownership and control of Grantee to Proposed Transferee, Grantee and Proposed Transferee shall hold harmless City, SWSCC, and Member Cities on and after Closing of the transfer from any liability or responsibility with respect to the sale or transfer of ownership of the cable communications system and the Franchise of the City to Proposed Transferee. On and after the transfer from Rogers to Proposed Transferee, Proposed Transferee shall guarantee and Grantee shall assume any and all then existing responsibilities and liabilities related to the Franchise, the CATV Relief Ordinance, the CATV Relief Ordinance Amendment, the Performance Agreement, as amended, the Contract for Local Programming Activities between SWSCC and Grantee, including Rogers ' responsibilities and liabilities, and the City, SWSCC and Member Cities shall release and discharge Rogers and Grantee from any and all responsibilities , liabilities, claims and disputes, known and unknown, related to the Franchise and Grantee . 4 . If the conditions of this Stipulation are not satisfied because of actions by Rogers , Grantee or Proposed Transferee, Grantee and Rogers agree to reimburse the City and SWSCC for all expenses over and above amounts previously paid by Rogers and/or Grantee in connection with this Stipulation and also agree to be continuously bound by the terms of the existing Franchise, the CATV Relief Ordinance, the Performance Agreement, the Contract for Local Programming Activities , the Acceptance Agreement and Agreement of Joint and Several Liability both given in connection with the transfer of the Franchise to Grantee . 5 . This Stipulation and all of its Exhibits shall be null and void and shall not be effective, unless Proposed Transferee - 4 - enters into a guarantee agreement on or before the time of 4 Closing of transfer of ownership from Rogers to Proposed Transferee agreeing to guarantee Grantee's performance of the Franchise as amended, this Stipulation, the CATV Relief Ordinance as amended, and the Performance Agreement as amended, and unless the Proposed Transferee complies with the terms of Article XIV of the Franchise. The foregoing was agreed to and entered irl o between the Grantee, Rogers, and City on the day ofY , 1988 . City of Edest Prairie �?4ay6r y Maii- ger ROGERS CARL -SYSTEMS OF THE SOUTHWEST, INC. , a Minnesota corporation l By_ Its ROGERS COMMUNICATIONS , INC. , a Canadian. 7L7 1 tk, By Its ROGERS U.S . CABLESYSTEMS, INC. , a Delaware o oratio By Its ROGERS CABLESYSTEMS OF AMERICA, INC. , a aware Tor tion By Its SW3/STIPUL2 .SW -- 11/7/88 5 STATE OF MINNESOTA) ) ss COUNTY OF HENNEPIN) The foregoing instrument was subscribed and sworn Q before me this tI day of %i , I !R' , 19' , by I� ' the Mayor of the CITY OF municipal corporation, on behalf of sald"",;C.Qrporalti(smo j NOTARY P)BLIC—MINNESOTA Not .ivvvw. x •+�,,.-van,,.v�nn,�,tivv�nN,ni,,v�nrmnnn�r. STATE OF MINNESOTAj ��.�,_ ' JOYCE D. PROvO ,r b NOTARY PUBLIC--MINNESOTA Ss HENNEPIN COUNTY COUNTY OF HENNEPIN) My CeTmission Expires Dec, 11, 1990 The foregoing ins rument was subscribed and,'1sworn__A:o before me this I day of 13 , by the City Manager of the CITY OF � y1; �fi,�� I, a Minnesota municipal corporation, on behalf of said corporation. Notary b q n VVNti�Si } STATE OF MINNESOTA) JOYCE D. PROvO Ss NOTARY PUBLIC--MINNESOTA HENNEPIN COUNTY COUNTY OF HENNEPIN) Aiy Commission Expires Dec. 11, ISO 1 The foregoing instrument was subscribed and sworn to before me this day of 19 -, by p/ the of ROGERS CABLESYSTEMS OF THE SOUTHWEST INC. , a Minnesota corporation, on behalf of said corporation. Notary Public STATE OF MINNESOTA) >, ss COUNTY OF HENNEPIN) The foregoing instrument was subscribed and sworn to before me this day of 19 d L, by the ROGERS J COMMUNICATIONS, INC. a"C- rfathan corporation, on behalf of said corporation. l N+btsry Public X4,A.A Ait?,,<..t..?^.C. 6 STATE OF MINNESOTA) ss COUNTY OF HENNEPIN) The foregoing instrument was subscribed and sworn to before me this "-.` ) day of I I "'," —r L L, by the . 19 0 _, i' of ROGERS CABLESYSTENS OF AMERICA, INC. , a Delaware corporation, on behalf of said corporation. Nbt,Ary Public STATE OF MINNESOTA) My cu' .�;_ ) ss COUNTY OF HENNEPIN) The foregoing instrument was subscribed and sworn to before me thisi day of 19 by the of ROGERS U.S . CABLES YSTEMS, INC: , a Delaware corporation, on behalf of said corporation. :Wotary Public A. I y k' '%IV CC: 7 1 3 9 V,V SW3/STIPUL.SW 10/20/88 7 C b V � Lam..r. tc c!fa- Z3d3 )�y tea C=er2-:t n �. cP ar ..^, •- • j �Grc^Csiw� C' Is»}� �C �5$o and St•.z's� ��:,� ! q map �• incil-,d :•g tt' . z-;i c _� u%j 5 &nd ZU!, � 17i� • G�7 4:1 �:'::r~� a t •. 7 `�.. ^,��+ yn� RR 1 er.2 r .� p 1 d ']] s,�.. ^r s+r0 tha C-s=2-t riC L .ti rn...lr�9.•� cr the L•�lis llewvw��i... +�.� v s nc- p :�3er,t tha *r-asad L' Lam' cL:z cf wh.-- r t S to -p c'^_.iIy c-cnc uds 1A r At i. i a� ti.{C+i,2f C 'Lw o �f:BC V t � r 1 .� _r� arr.C'��Ia�� byn�+tL., r trr- r 1wi t..a f,�4,a.s, c cam � ., '1 �rsals- r.cw uycr. 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YOU tz-aly Vic: Fragidcn' , 83 { EXHIBIT DD ILM ENI5KENT TO PERFORD(ANCE AGREEMENT THIS AGREEMENT dated the + '` day of i ;`l1"�'r f yf 1988, by and between ROGERS CABLESYSTEMS OF THE SOUTHWEST, INC. , ("Grantee") , a Minnesota corporation, its successors or assigns, ROGERS U.S. CABLESYSTEMS, INC. ("Parent") , a Delaware corporation, its successors or assigns, the CITY OF Eden Prairie MIN'NESOTA ("City") , a municipal corporation, and the SOUTHWEST SUBURBAN CABLE COMMISSION (11SWSCC11) , a joint powers organization created by the Cities of Eden Prairie, Edina, Hopkins, Minnetonka, and Richfield, Minnesota ("Member Cities") to amend a Performance Agreement entered into by them (hereinafter~ "Performance Agreement") to be consistent with Ordinance No. 12-85 (hereinafter 11CATV Relief Ordinance") as amended by Ordinance No. F. � hereby agree as follows: WHEREAS , City has adopted a Resolution, approving this Agreement ; WHEREAS, in accordance with the Resolution and the terms and conditions therein, certain modifications in relief previously provided in the CATV Relief Ordinance are required; and ;. WHEREAS, acceptance of this Agreement and of the changes provided for herein are required in order to satisfy the conditions of the Resolution. NOW, THEREFORE, based upon the consideration of each of the parties herein and the mutual understandings of them, the following changes to the Performance Agreement are hereby mutually agreed to: 1 . Section 2 is amended to read as follows: Section 2 . Definitions. The words and phrases used in this Agreement shall have the meanings given to them in the Franchise and CATV Relief Ordinance. 11CATV Relief Ordinance" as used herein, in the Contract for Local Programming Facilities, the Contract for Public, Educational, and Government Access Services, and all agreements related thereto, shall mean the CATV Relief Ordinance (Ordinance No. 12-85 ) as amended by Ordinance No. t 1 2 . Section 4 .04 is amended to read as follows : 4 . 04 . The City agrees to pay, to assist in providing local programming, up to, but not in excess of one- fifth ( 1/5) of the five percent (5%) annual franchise fee actually received by the City pursuant to the CATV Relief Ordinance, as amended, on the following terms and conditions: (Paragraphs A through B are unchanged) C. Grantee shall deduct up to one--fifth (1/5) of the quarterly franchise fee payment made to City. The actual amount to be deducted shall be based upon the access budget prepared by Grantee and approved by the SWSCC each year. The amount deducted in accordance with the access budget shall be identified by Grantee with each payment of the franchise fee . If Grantee ' s required payment for local programming of one percent (1%) of gross revenues is not fully expended in the performance of the. Facilities Contract , then the remaining amounts will be expended by Grantee for local programming or used to reduce the amount payable under this paragraph pro rate among the Member Cities on the basis of the contribution of each, in the discretion of SWSCC - (Paragraphs D through H are unchanged) 3 . _Section 5 is amended by addincr a new Section 5 . 07 as follows : 5. 07 . Pursuant to the report and recommendations issued under Section 5 . 04 above, development of an institutional network shall be deferred for the longer of: 1) five (5) years from the date of this amendment to the Performance Agreement dated av /�, /�I��S or 2) until the SWSCC reconvenes and/or reappoints SWING and SWING determines pursuant to this agreement that the institutional network is economically viable and that the construction of the network would not have an adverse impact on the financial condition of Grantee and residential subscriber rates . �i A 7 2 2 . Section 4 _ 04 is amended to read as follows: 4 . 04 . The City agrees to pay, to assist in providing local programming , up to , but not in excess of one- fifth (1/5) of the five percent (50) annual franchise fee actually received by the City pursuant to the CATV Relief Ordinance, as amended, on the following terms and conditions : (Paragraphs A through B are unchanged) C. Grantee shall deduct up to one-fifth (1/5) of the quarterly franchise fee payment made to City. The actual amount to be deducted shall be based upon the access budget prepared by Grantee and approved by the SWSCC each year. The amount deducted in accordance with the access budget shall be identified by Grantee with each payment of the franchise fee. If Grantee' s required payment for local programming of one percent (1%) of gross revenues is not fully expended in the performance of the Facilities Contract, then the remaining amounts will be expended by Grantee for local programming or used to reduce the amount payable under this paragraph pro rate among the Member Cities on the basis of the contribution of each, in the discretion of SWSCC. (Paragraphs D through H are unchanged) 3 . Section 5 is amended by adding a new Section 5 . 07 as follows: 5 . 07 . Pursuant to the report and recommendations issued under Section 5 . 04 above, development of an institutional network shall be deferred for the longer of: 1) five (5) years from the date of this amendment to the Performance Agreement dated Igo✓ /1,Irish, or 2) until the SWSCC reconvenes and/or reappoints SWING and SWING determines pursuant to this agreement that the institutional network is economically viable and that the construction of the network would not have an adverse impact on the financial condition of Grantee and residential subscriber rates . 1 i i i 2 4 . This Agreement shall be effective only upon Ordinance No. becoming effective and four parallel ordinances for all Member Cities becoming effective and upon completion of the purchase of the common stock of RCA Cablesystems Holding Co. by KBL Cable, Inc. , a Texas corporation, and compliance by KBL Cable, Inc. , with all of the requirements of Closing including signing and delivering a guarantee agreement required by paragraph 5 of the Stipulation of Settlement and Release between the City, Grantee, Rogers Communications, Inc. , and Rogers Cablesystems of America, Inc_ 5 . Except as specifically modified herein, all other requirements of the Performance Agreement shall remain in full force and effect. CITY OF Eden Prairie By_. Its SOUTHWEST SUBU, BAN CABLE COMMISSION f By Its ROGERS CABLESYSTEMS OF THE SOUTHWEST, INC. , a Minnesota corporation By ✓ Y Its ROGERS U.S. CABLESYSTEMS, INC. its successors or assigns By Its SW3/AMEND2 .SW 11/7/88 3 STATE OF MINNESOTA) ) ss COUNTY OF HENNEPIN) The foregoing instrument was subscribed and, swore ,< before me this i, day of l , , 19 ' by -;/" ;' -r �, the _i 1 -r, T. of the CITY OF ,•' %:- ii < , -a Minnesota municipal corporation, on behalf of said corporation. Notary Public STATE OF MINNESOTA) s 10YCE D. PRC�'b ;. `,' NOUi ;'f f .`;Li'.'—^I"'�'JESOTk r SS '-t"� ` COUNT'r COUNTY OF HENNEPIN) My CGTTiffll$Sl:rl Expires Dec. 11, 19�0 x The foregoing inst.�ument was subscribed and swo-rn--to before me t s ! day of [�_I �'� +��',?�2 ,' , 19 , by i i -! the Yr 1t%a _ of the SOUTHWEST SUBURBAN CABLE COMMISSION, on behalf r_,f said corporation. j Nc ary Public wr• 4�/�MMA�:tMMN✓v/`Jt1.1-^.�/VANV'.N�n cc STATE OF MINNESOTA) SS 1 ; COUNTY OF HENNEPINM.-Yi H WYdW1NVvYW V`JW V�v Y./`V vV v i':•.r„^.:. The foregoing instrument; was subscribed and .sworn to before me this :`i/1 day of ;'UDC �'� ��,� , 19 by the ;`r ; ref / ,:'/of ROGERS CABLESYSTEMS OF THE SOUTHWEST, INC. , a Minnesota corporation, on behalf of said corporation. Nfbt6ry Public AAAdaQt�/SAAAG�A6A�•ARAF.A.C. r A44AA4Ax STATE OF MINNESOTA) a -^ t t Fr r rJ E ` PE r,EF;S+�!'J A �.ti ,.'��. . PlOTAi"! WJaI !L'•f��( "';,C.iT b E. I IE_rJ :_r rY 7� COUNTY OF HENNEPIN) }c�s�n•rvv�;��yy,�,vvv�ti��iv v'vvr: �c{;>1 �v�.° The foregoing instrument was subscribed and sworn to before me this ;=;/-; ) day of ,;e - ' , 19 . �U , by /-llr/t�.1 /-j- C the <+;y .r;ct. ' of ROGERS U.S. CAHLESYSTEMS, INC. , its successors or assigns, on behalf of said corporation. C Alotary Public r10TA �OTA SW3/AMEND. SW - 10/19/88 Xb^y�bro'en v�'d�nvvv�"��;�':�vv�v��v'a•�v�''Jt �' 4 FMIZBIT RE WAIVER OF COMPLETION OF MINOR FRANCHISE OFFERINGS 1 . The cable company provided for inter-city connection via ultra high performance bi-directional trunks utilizing feed- forward amplifiers and three-quarter or one-inch size low loss cable. The 270 MHz Mid-Split Channel Capacity would provide 17 forward and 17 reverse channels. (Form I, p. 22) Such waiver does not extend to the Proposed Transferee. 2 . The cable company provided that 55 miles of PVC conduit would be installed in areas of underground construction undertaken during the initial construction period. The use of the conduit would provide for future expansion of the system to a dual cable network should the need for additional channel capacity arise . (Form I, p. 1a) In constructing the system, Rogers found that over 200 miles of underground plant were required. Rogers built the system using conduit under all streets and highways but not for other construction. It is the intent of the parties to this Stipulation that this policy would be continued by the Proposed Transferee. 3 . Cable company was to provide 20 modulators at 20 locations throughout the joint system in addition to those provided to educational institutions. (Article IV, Sec. 1 C5) The policy of the cable company has been to provide modulators on an "as needed" basis. It is the intent olo the parties to this Stipulation that this policy would be continued by the Proposed Trans f eree. AM2 10/19/88