ORDINANCE 2003-10

CITY OF ALBERTVILLE, MINNESOTA

AN ORDINANCE GRANTING A FRANCHISE TO FTTH COMMUNICATIONS, L.L.C., A MINNESOTA LIMITED LIABILITY COMPANY, TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE SYSTEM AND PROVIDE CABLE SERVICE IN THE CITY OF ALBERTVILLE, MINNESOTA.

RECITALS:

      1.   This cable franchise ordinance ("franchise") is made and entered into by and between the city of Albertville, a municipal corporation of the state of Minnesota ("city") and FTTH Communications LLC, a Minnesota a limited liability company ("grantee").

2. Pursuant to ordinance no.         ("cable ordinance) 1 , the city is authorized to grant and issue a nonexclusive franchise authorizing the grantee to provide cable service and construct, operate, and maintain a cable system in the city.

      3.   The grantee timely submitted a request for a franchise.

      4.   Upon evaluation of grantee's technical, financial, legal qualifications, completion of franchise negotiations, and as a result of a public hearing, the city finds that it is in the best interests of the city and its residents to grant and issue a franchise to grantee.

      5.   This franchise is nonexclusive and complies with applicable laws and regulations.

THE CITY COUNCIL OF THE CITY OF ALBERTVILLE HEREBY ORDAINS:

SECTION 1. GENERAL PROVISIONS:

1.1: Definitions: Unless otherwise defined herein, the terms, phrases, and words contained in this franchise have the meaning provided in the cable ordinance2. Terms, phrases and words contained in this franchise that are not defined here or in the cable ordinance will have their normal and customary meaning.

MPUC:   The Minnesota public utilities commission, or its lawful successor.

1.2: Written Notice: All notices, reports, or demands required to be given in writing under this franchise or the cable ordinance must be delivered personally to any officer of grantee or the city administrator or deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to whom notice is being given, as follows:

If to city:   City of Albertville

   Attn: City Administrator

   City of Albertville

   8899 Nashua Ave. NE

   Albertville, MN 55330-7314

If to grantee:   FTTH Communications, L.L.C.

   4483 Evermoor Parkway

   Rosemount, MN 55068

   Attn: John Schultz

With copies to:   Christopher K. Sandberg

   Lockridge Grindal Nauen

   Suite 2200

   100 Washington Avenue South

   Minneapolis, MN 55401-2179

Such addresses may be changed by either party upon notice to the other party given as provided in this section.

SECTION 2. GRANT OF FRANCHISE:

2.1: Grant:

         a.   Grantee is authorized to deliver cable service and construct, operate and maintain a cable system in the rights of way in the city.

         b.   This franchise is granted pursuant to the cable ordinance. By accepting this franchise, grantee agrees to be bound by the terms of the cable ordinance. In the event of any conflict between the provisions of this franchise and the cable ordinance, the provisions of this franchise shall govern. The city shall, at all times, have the right to amend the cable ordinance in the exercise of its police powers and as otherwise permitted by applicable law.

         c.   Grantee acknowledges the right of city to issue this franchise.

2.2: Franchise Term: This franchise will be in effect for a period of fifteen (15) years from the date of acceptance by the grantee, unless sooner renewed or revoked.

2.3: Service Area:

         a.   Grantee's system will pass and grantee will offer service to all dwellings, homes and businesses within the area(s) identified on the map attached as exhibit A.

         b.   The city does not initially intend to enforce system extension requirements. Upon the city's adoption of a resolution imposing system extension requirements, the grantee will extend its system and offer cable service to areas not identified in exhibit A within a reasonable time, not exceeding one hundred twenty (120) days, after a request for service. Provided, however, that grantee will only be required to extend its system where such extension area has a density of at least nine (9) residential units per one-quarter (1/4) cable mile of system, as measured from the nearest tap on the cable system. Where the density is less than that specified above, grantee shall inform persons requesting service that such service will be provided upon payment of a portion of the cost of installation or line extension and grantee shall provide a free written estimate of such cost within fifteen (15) days of the service request. The charge for installation or extension for each person requesting service shall not exceed a pro rata share of the actual cost of extending the service.

SECTION 3. SYSTEM:

3.1: System Capacity: Grantee will construct and operate a passive fiber optic network with fiber extended to the subscriber's dwelling providing at least the equivalent of seven hundred fifty (750) MHz of capacity. The system will deliver at least seventy five (75) video programmed channels throughout the term of this franchise. A portion of the capacity may be reserved for competitive services such as digital programming, internet service or other telecommunications services. Grantee's system will have return capability.

3.2: Construction Deadline: Grantee must substantially complete the construction of its system within twelve (12) months after acceptance of this franchise. This requirement may only be waived by city in writing, upon the occurrence of acts beyond the reasonable control of grantee.

3.3: Pedestals: Pursuant to section 5.3b of the cable ordinance 2 , grantee shall be permitted to install standard pedestals necessary for standard installations without receiving prior approval from the city. A standard pedestal shall be no larger than two feet by two feet (2' x 2') and three feet (3') tall.

SECTION 4. COMMUNITY SERVICES:

 

Notes

1	1. See title 4, chapter 6 of the city code.
2	1. See subsection 4-6-18C2 of the city code.