Loading...
HomeMy WebLinkAboutAgenda Report - December 4, 1985 (63)Q=" CITY COUNCIL MEETING DECEMBER 4, 1985 Camm=X CELE TELEVISION SYSTEM FRANCHISE ORDINANCE INTRODUCED / ORD. NO. 1370 Agenda item K-4 - "Consider adoption of Community Cable s/ IN'T'RO. Television S� tern Franchise Ordinance" was introduced by City Manager Peterson. A lengthy discussion followed with questions being directed to Staff and to the City Attorney regarding the matter. Mayor Hinchman and Council Member Pinkerton expressed their desire to meet with the City Attorney to draft additional language in the subject ordinance to ensure satisfactory subscriber service. Following additional discussion, Council Member Olson moved for introduction of Ordinance No. 1370 - An Ordinance of the Lodi City Council Repealing Lodi Municipal Code Chapter 5.16 Ccmmity Antenna Television System Franchises and Enacting a New Chapter 5.16 - C nm rdty Cable Television System Franchises. The motion was seconded by Mayor Pro Tempore Reid and carried by the following vote: Ayes: Council Members - Olson, Reid, and Snider Noes: Council Members - Pinkerton and Hirschman (Mayor) Absent: Council Members - None Abstain: Council Members - None The meeting between Mayor Hinchman, Council Member Pinkerton and the City Attorney regarding the drafting of additional language in the subject ordinance to ensure satisfactory subscriber service will be scheduled prior to the second reading of this ordinance. - - 7 an '"y,��..4 d _ " - '} '! � t. � . 3 �- 'tea• rsr F c�. c 1500 NO(Zit-i BEWWARC STREET. SUr E 205. ALEXANDRIA. VA 22311 (703) 845-1700 CITY OF LODI, CALIFORNIA REQUEST FOR PROPOSAL FROM KING VIDEOCABLE COMPANY FOR RENEWAL OF ITS CABLE TELEVISION FRANCHISE SERVING THE CITY OF LODI, CALIFORNIA c 1500 NO(Zit-i BEWWARC STREET. SUr E 205. ALEXANDRIA. VA 22311 (703) 845-1700 INSTRUCTIONS 1. General In accordance with the Cable Communications Policy Act of 1984, Sec. 626, the City of Lodi hereby requests King Videocable to submit a proposal for renewal of its cable television franchise. The present franchise is due to expire at midnight, February 20, 1988. The term of a new francise would be for ten (10) years (?) and would become effective upon completion of negotiations and the adoption of a Resolution by the City Council of Lodi granting a renewal of the frau- chase and incorporating any terms and conditions as negotiated by the City and King Videocable. Attached to this Request for Proposal is a draft copy of a revised regulatory ordinance that is intended to amend and replace Ord. 855 (Chap- ter 8A of the Lodi City Code). The proposed revisions will be scheduled for consideration and adoption by the City Council prior to their decision to grant or deny a renewal of the franchise with King Videocable. If the cable company desires to make comments or suggestions regarding the propos- ed regulatory ordinance, such comments must be included with the company's response to this Request for Proposal. E-1. — 2 — The attached forms are to be utilized by the company to facilitate a complete response to the financial, technical and services information requested. Several :Mems presented in this Request for Proposal will need . a narrative response in addition to filling out the forms. Questions relating to the method of response or interpretation of in— structions should be presented directly to CTIC Associates at 703/845-1700. Persons to contact are Harold E. Horn, President, CTIC Associates; Deborah Love, Senior Financial Analyst; Bill Kohutanycz, Director of Technical Services; and Lonni Moffet, Programming and Services Specialist. 2. Date and Place for Receiving Proposal The City of Lodi is has established the date of September 23, 1985 as the due date for a proposal from King Videocable which must be submitted to the Office of the City Manager, City Hall, City of Lodi. 3. Number of Copies of Proposal The City requires at least 12 copies of the proposal to permit the simultaneous review and analysis by the City Council, City Administrative and Legal staff, and the City's consultant. 4. Payment of Costs for ProcessinZ and Evaluating Proposal In accordance with the proposed ordinance revisions (See Section Duration of Franchise; Renewal subsection (7)): "The Grantee shall pay all costs incurred by the City considering and processing a proposal for re- newal as described in Subsection (1), (3)(a), (3)(c) and (6)." 5. Financial Plan - Pro Forma An important feature of the proposal is for.the City to receive an ade- quate demonstration of the financial capability of the company to perform in accordance with its proposal and to permit the City to determine the cable company's ability to earn a fair return on its investment and the potential impact of any proposed improvements to the cable system upon subscriber rates. The attached financial forms have been designed to elicit the critical financial and demographic data regarding the proposed renewal of the Lodi CATV system. It is acceptable to substitute an alternative format for pre- senting this data as long as the critical data as requested in these forms '- are included in that format. For example, a computer printout format is Kim goacceptable as long as it contains or is supplemented with the requested subscriber data, major financial statements (Income, Sources and Uses, Balance) as well as detailed operating expense and capital expenditure information. Please include a 10 -year financial forecast. Include all expenditures associated with expected system enhancements as well as regularly required capital replacement for converters, vehicles, and maintenance. Also include any expected rate increases for basic, pay and other ancillary services. - 4 - Base all operating and capital expenditure forecasts on a five (5) percent annual inflation rate. 6. Requirements for Facilities and Equipment Acting pursuant to Section 624 of the Cable Communications Policy Act of 1984, the following facilities and equipment have been established by the City as minimum requirements that are to be addressed by the cable company in presenting its renewal proposal: (a) A complete upgrading of the cable system serving the City of Lodi by rebuilding the present system to at least 400 MHz capacity. (If the entire cable system is not totally rebuilt, the company is to specify in detail exactly which components will be "retained".) (b) The rebuilt cable system shall be designed and constructed to have the capability of two—way activation. (c) The rebuilt cable system shall initially activate and offer at least 35 channels of programming. (d) The rebuilt cable system shall include the provision of ad— dressable technology for the delivery of subscriber services. (e) Standby power shall be provided to the cable system headend and on all trunk lines. (f) The rebuilt cable system shall include emergency audio override - which can be readily activated during public emergencies by of— ficials designated by the City. - 5 - (g) Technical standards are to be presented for the proposed system rebuild that will meet or preferably exceed the FCC standards. (h) In order to restrict the viewing of programming which is obscene or indecent, upon the request of a subscriber, the cable company shall provide (by sale or lease) a device by which the subscriber can prohibit viewing of a particular cable service during periods selected by that subscriber. The company shall describe the equip- ment and the procedures and conditions under which this Federal requirement will be carried out. 7. System Construction (a) Construction Schedule On the forms provided, the company is to present its proposed construction schedule and timetable for the system rebuild showing by description, and also on a map, exactly what areas will be rebuilt including dates for completion of each section. (Dates may be referenced in month and days from the effective date of a new franchise renewal agreement.) (b) Service Area Defined Any areas of the city that will not receive cable ser%ice shall be so indicated on a system map along with an explanation as to why the area is being excluded from service. (NOTE: In ac^ordance with Section 621 of the Cable Communications Policy Act of 1984, the City is notifying the company that it is required to assure that access to cable service is not denied to any group of poten- :As tial residential cable subscribers because of the income of the residents of the local areas in which such group resides.) (c) Line Extension Policy Cable service is required by the City to be extend4d to residential areas no later than six (6) months after a density of forty (40) dwelling units per street mile is reached. 8. System Maintenance and Operation The City is seeking in this Request for Proposal a modern, efficient, and cost effective cable system which will encompass quality maintenance practices, deliver a variety of marketable services and provide the flexi— bility needed to adjust to new developments. In response to complaints and suggestions received at a public hearing called to evaluate the performance and the services currently provided by King Videocable, and in addition, certain observations and recommendations made in a report to the City by its cable consultant, the cable company is directed to specify on the forms attached what measures it plans to adopt to improve its complaint handling procedures, service calls, telephone accessability, and system preventative maintenance procedures. The company is further directed to review the requirements of the proposed new regulatory ordinance and describe the system of records that it plans to initiate that will permit periodic review -7- and analysis of complaints and service calls received and the disposition made of each call. 9. Programming Services (a) In addition to the Basic, Premium and Audio services currently provided by King Videocable, the City of Lodi is interested in seeing an increase in the diversity of cable services available to Lodi subscribers. In the interests of meeting the community's future cable related needs and interests, the City of Lodi requests that King Video consider offering additional programming to meet a variety of viewers' interests. (b) The City of Lodi requires toat King Videocable offer at least three channels dedicated for access, one each for o Public Access o Educational Access, and o Government Access (c) The City of Lodi requests that King Videocable describe how it plans to provide Commercial Leased Access channels pursuant to Section 612 of the Cable'Communications Policy Act of 1984. 10. Studios and Production Facilities for Public, Educational and Government Access Use The City of Lodi is interested in enhancing the Public, Educational and Governmental Access program production capabilities offered by King Videocable from the level presented in its Reporting Forms. r Specifically the City is interested in seeing a fuller complement of studio and portable production equipment, post—production facilities, and additional support for local program productions, including staff, operating expenses, increased hours of programming and the promotion of access and training of community producers. (a) Production Equipment and Facilities for Access Programmin The following specific studio and production facilities are required to be provided for public, educational, and government access channel development on at least a part—time basis and are also intended to enhance the company's local origination program— ming effort. These facilities and staff should be made available to access users if demand warrants, minimum of 15 hours per week. (1) Supplemental Studio Equipment 2 color cameras — studio and portable—capable with tripods, power supplies, viewfinders, controls and cables 2 10" color monitors and cables 1 13" B&W monitor and cables 2 3/4" VCRs 1 triple B&W monitor 1 chrome kr..- generator 4 headsets studio lighting switcher/special effects generator (3) Post -Production Equipment 1 edit controller 1 1/2" VCR 2 3/4" VCRs with edit 1 time base corrector 2 color monitors audio board and tape player (4) Improve Local Origination Production Facilities that are Utilized in Presenting Public Meetings at the City Council Chambers. The company is requested to present a.plan as'a part of their proposal that will enhance the quality of the pre- sentations which the company originates from the City Hall. This may need to include improved lighting, better sound fa- cilities, improved switching capability and perhaps re- channelization if the present channel is not technically suitable for quality signal delivery to subscribers. (S) Character Generator Equipment The City desires to have a character generator system with two remote keyboards/19" color monitors installed for use by the City and the school system at locations to be designated by the City. The system shall have adequate page capacity to continuously deliver messages of public interest and information to all subscribers. (2) Additional Portable Equipment 2 portable cameras with tripods, cases and cameras 1 portable 3/4" VCR 2 portable 1/2" VCRs 4 portable light kits 4 microphones 4 batteries 2 portable mic mixers 1 portable switcher 2 portable monitors (3) Post -Production Equipment 1 edit controller 1 1/2" VCR 2 3/4" VCRs with edit 1 time base corrector 2 color monitors audio board and tape player (4) Improve Local Origination Production Facilities that are Utilized in Presenting Public Meetings at the City Council Chambers. The company is requested to present a.plan as'a part of their proposal that will enhance the quality of the pre- sentations which the company originates from the City Hall. This may need to include improved lighting, better sound fa- cilities, improved switching capability and perhaps re- channelization if the present channel is not technically suitable for quality signal delivery to subscribers. (S) Character Generator Equipment The City desires to have a character generator system with two remote keyboards/19" color monitors installed for use by the City and the school system at locations to be designated by the City. The system shall have adequate page capacity to continuously deliver messages of public interest and information to all subscribers. - 10 - (b) Support for Community Productions (1) Staff Equivalent of three full-time staff for LO and Access pro- duction. (2) Operating Budget A $18,000 to $23,000 per year operating budget to be used # for support of Access. (3) Promotion Activities - Inclusion of access program schedules on channel guide and/or other descriptions of cable service schedules; - Quarterly notices to subscribers regarding availability of access facilities. (4) Training Availability of regular training sessions for local access producers. 11. Franchise Fee The City intends to establish a franchise fee of 5 percent of all gross revenues of the cable system that would be effective upon the effective date of the renewal of the franchise. 12. insurance, Bonding, Security Fund The City suggests that the cable company familiarize itself with the P Y proposed new provisions to be added to the City Code regarding insurance, construction bonds, and security funis. PROPOSAL FOR RENEWAL OF CABLE TELEVISION FRANCHISE CITY OF LODI, CALIFORNIA Affidavit This proposal is submitted in response to the Request for Proposals of the City of Lodi, California, by the undersigned who has been duly authorized to make the representations herein on behalf of the company. King Videocable recognizes that all representations are binding on it and that failure to adhere to any such representations may, at the City's option, result in revocation of any franchise that may be granted, as a consequence of this proposal. King Videocable acknowledges that it has reviewed all requirements of the.Request for Proposal and all provisions of the proposed regulatory ordinance and agrees to all of said provisions, unless otherwise qualified in writing in this proposal. Consent is hereby given to the City to make inquiry into the legal, character, technical, financial and other qualifications of the company by contacting any persons or organizations familiar with our operations, or by any other appropriate means. Firm Name Affiant's Signature Official Position Date Attest PROPOSAL RESPONSE FORMS LODI, CALIFORNIA LIST OF CONTENTS No. of Pages DEMOGRAPHIC AND FINANCIAL REPORT FORMS 15 TECHNICAL INFORMATION FORMS: SYSTEM TEC 25 CONSTRUCTION, CAPACITY AND DESIGN SERVICES INFORMATION FORMS 13 3 RATE INFORMATION FORMS D DEMOGRAPHIC AND FINANCIAL REPORT FORMS ODI, CALIFORNIA FINANCIAL Page 1of 15 DEMOGRAPHIC INFORMATION PRO FORMA PROJECTIONS YEAR _ 1985 1986 1987 1988 1989 � 1. Miles of plant - entire system 2. Underground plant (% of total miles) entire system 3. Homes passed by cable - entire system 4. Residential basic subscribers* - entire system 5. Residential pay TV subscribers - entire system 6. Commercial subscribers - entire system If more than one tier of basic service is offered, please break out subscribership to each tier. r.. { T FINANCIAL Page 1(a) of 15 1. Miles of plant - entire system 2. Underground plant (% of total miles) - entire system 3. Homes passed by cable - entire system 4. Residential basic subscribers* - entire system 5. Residential pay TV subscribers - entire system 6. Commercial subscribers - entire system DEMOGRAPHIC INFORMATION PRO FORMA PROJECTIONS YEAR 1990 1991 1992 1993 1994 I I i I If more than one tier of basic service is offered, please break out subscribership to each tier. FINANCIAL yXY.iu W':i+uC:f:�K ydilii� tiRLWV:•Y Page 2 of 15 REVENUE DETAIL PRO FORMA PROJECTIONS YEAR 1985 11987 1988 1989 1. Basic Revenues ($) Residential subscribers Commercial subscribers Total Basic ?ncome 2. Second Set Revenues Residential subscribers Commercial. subscribers 3. Installation Income Residential subscribers Commercial subscribers 4. Pa.X TV Income Residential subscribers Commercial subscribers 5. Other Income (FM, security, advertising, etc.) Total Income FINANCIAL Page 2 of 15 REVENUE DETAIL PRO FORMA PROJECTIONS YEAR 1985 1986 1987 1988 1989 1. Basic Revenues ($) Residential subscribers r Commercial subscribers F Total Basic ?ncome 2. Second Set Revenues Residential subscribers i Commercial subscribers 3. Installation Income Residential subscribers g; Commercial subscribers F Pay: TV Income is Residential subscribers Commercial subscribers 5. Other Income (FM, security, IJ advertising, etc.) Total Income s y; FINANCIAL Page 2(a) of 15 REVENUE DETAIL PRO FORMA PROJECTIONS YEAR. 1990 1991 1992 1993 1994 1. Basic Revenues ($) Residential subscribers Commercial subscribers Total Basic Income 2. Second Set. Revenues Residential subscribers Commercial subscribers 3. Installation Income Residential subscribers Commercial subscribers 4. Pay TV Income Residential subscribers Commercial subscribers 5. Other Income (FM, security, advertising, etc.) Total Income l .f. t Y i � ! o-. 'uit '•sr ,i€. u� �.r �F C �� ,ul.r�`� mW AWN il�" dWW WN FINANCIAL Page 3 of 15 l EXPENSE DETAIL .nu FORMA PROJECTIONS YEAR 1985 1986 1987 1988 1989 A. PLANT Salaries 4` Benefits €' Maintenance Convert -dr maintenance " Pole and site rentals Power Vehicle expense Rent Payroll and expenses (capitalized) Others: specify B. ORIGINATION Salaries Benefits Rent Maintenance Vehicle Expenses Common Carrier (Terrestial) Local Program Materials (Tape stock and miscellaneous supplies) Satellite Signals* Independents Other Pay Cable Stand --alone Program Material Film Service Other.Non—Automated Automated Programming Promotion (LO k Access) Other Miscellaneous: ..specify *hist all's.gnals imported and their corresponding annual cost (i.e. WPBS--$ , MSG--$ UPI--$ ). r FINANCIAL, Page 3(a) of 15 EXPENSE DETAIL PRO FORMA PROJECTIONS YEAR 1990 _ 1991 1992 1993 1994 A. PLANT Salaries Benefits s Maintenance Converter maintenance Pole and site rentals Power Vehicle expense Rent Payroll and expenses (capitalized) Others: specify B. ORIGINATION Salaries Benefits k Rent Maintenance Vehicle Expenses Common Carrier (Terrestial) Local Program Materials (Tape stock and miscellaneous supplies) Satellite Signals* Independents Other" Pay Cable Stand-alone Program Material Film" Service Other Non—Automated Automated Programming Promotion (LO & Access) Other Miscellaneous: specify i *List all signals imported and their corresponding annual cost (i.e. WTBS--$ , MSG--$' , UPI--$ ). ur FINANCIAL Page 4 of 15 EXPENSE DETAILS (continued) PRO FORMA _ PROJECTIONS YEAR _ 1985 1986 1987 1988 1989 C. GENERAL, SELLING & ADMINISTRATIVE EXPENSES Salaries Benefits Light, heat and power Vehicle expense Rent Travel and entertainment Contributions Professional services Stationary and supplies Postage and freight Advertising and promotion Telephone and telegraph Sundry office expenses Insurance Bad debt accounts Start-up expenses State and local taxes Franchise fees License and permit fees (local) Copyright payments Payroll and expenses (capitalized) Others: specify (use additional page 3a if necessary) D. CORPORATE OVERHEAD AND/OR MANAGEMENT FEES (See Page 6 of 15) E. TOTAL EXPENSES FINANCIAL Page 4(a) of 15 EXPENSE DETAILS (continued) PRO FORMA PROJECTIONS YEAR 1990 1991 1992 1993 1994 C. GENERAL, SELLING & ADMINISTRATIVE EXPENSES Salaries Benefits Light, heat and power Vehicle expense Rent Travei and entertainment Contributions Professional services Stationary and supplies Postage and freight Advertising and promotion Telephone and telegraph Sundry office expenses Insurance Bad debt accounts Start-up expenses State And local taxes Franchise fees License and permit fees (local) Copyright payments Payroll and expenses (capitalized) Others: specify (use additional page 3a if necessary) D. CORPORATE OVERHEAD AND/OR MANAGEMENT FEES (See Wage 6 of 15) E. TOTAL EXPENSES milli 1,711111111 B. Origination C. General, Selling,and Administrative D. Corporate Overhead/ Management Fee E. Total Expenses Page 5 of 15 ANNUAL EXPENSES (SUMMARY) PRO FORMA B. Origination C. General, Selling,and Administrative A. Corporate Overhead/ Management Fee 4 Page 5(a) of 15 ANNUAL EXPENSES (SUMMARY) PRO FORMA PROJECTIONS YEAR 1990 1991 1992 1993 1994 0 FINANCIAL DEVELOPMENT OF CORPORATE OVERHEAD Page 6 of 15 I. Basis for Allocating Corporate Overhead If the operator owns more than one cable system, describe the method used by the company for allocating corporate overhead. For example: All over— head pool costs are allocated to systems on the basis of a ratio of system subscribers to total company subscribers. II.. Parent Company Management Charge (Overhead) A. For the current year, itemize total corporate overhead pool in the following manner: Purchasing $ Engineering $ Accounting $ Data Processing $ Legal $ Programming $ Etc. (marketing, office services, budget, etc.) $ Less amount not allocated to systems $ Total overhead allocated to systems $ Total allocated to this system $ Average percentage allocated in 1984 X B. Explain the method of allocating overhead including the specific factors or formula used in the allocation. DERIVATION OF CAPITALIZED OVERHEAD AND CAPITALIZED INTEREST Page 7 of 15 I. Capitalized Overhead Discuss and describe the method(s) used in determining capitalized overhead applicable to the system. Da1>:ve the dollar amount of capitalized overhead applicable to the system during the current year and show the derivation of all factors. IZ. Capitalized Interest applicablealize Discuss the methoditali s) used in determining capltd interest to the system. Derive the dollar amount of capitalized interest applicable to the system during the current year and show the derivation of all factors. F E- FINANCIAL Revenues (From Page 2) Basic subscribers Pay TV Other (specify) Total Cost and Expenses (From Pages 3, 4, 5, 6, and 7) Plant Origination General, Selling and !kdzilnistrative Corporate Overhead Total Operating Income Depreciation and Amortization Interest Total Income bt�fore Federal Taxes Federal Income Taxes Net Incom,t Page 8 of 15 STATEMENT OF OPERATJRN6061tOFIT & LOSS STATEMENT) PRO FORMA 'g ........... u• ` FINANCIAL8 8(a) Pae8a of 15 STATEMENT OF OPERAIJ9,N§o61�0FIT & LOSS STATEMENT) PRO FORMA PROTECTIONS YEAR z 1990 1991 1992 1993 1994 j Revenues (From Page 2) ' Basic subscribers Pay TV Other (specify) ' Total Cost and Expenses (From Pages 3, 4, 5, 6, and 7) Plant Origination General, Selling and Administrative Corporate Overhead i:. Total Operating Income Depreciation and Amortization Interest Total Income before Federal Taxes Federal Income Taxes s ;' Net Income Page 9 of 15 PROJECTED CAPITAL.EXPENDITURE PRO FORMA' PROJECTIONS YEAR 1985 1986 1987 1988 078-9 1. Antenna(s) and Tower(s) 2. Microwave 3. Headend 4. Distribution Aerial Underground Pole arrangement 5. Drops Equipment on customer's premises (including labor if capitalized) 6. Converters 7. Building Headend Studios Offices 8. Leasehold improvements Furniture, fixtures 9. Program origination Remote mobiles Studio equipment 10. Land 11. Tools, test equipment 12. Spare parts, 13. Engineering 14. Vehicles 15. Preoperating 16. Pay TV converters (and related equipment) 17. Capitalized overhead (see page 6) 18. Capitalized interest (see page 6) 19. Other 20. Total. FINANCIAL Page 9(a) of 15 PROJECTED CAPITAL EXPENDITURE PRO FORMA PROJECTIONS YEAR 1990 1991 1992 1993 1994 1. Antenna(s) and Tower(s) 2. Microwave 3. Headend 4. Distribution Aerial Underground Pole arrangement 5. Drops Equipment on customer's premises (including labor if capitalized) 6. Converters 7. Building Headend Studios Offices 8. Leasehold improvements Furniture, fixtures 9. Program origination Remote mobiles Studio equipment 10. Land 11. Tools, test equipment 12. Spare parts, 13. Engineering 14. Vehicles 15. Preoperating 16. Pay TV converters (and related equipment) 17. Capitalized overhead (see page 6) 18. Capitalized interest . (see page 6) 19. Other 20. Total LEE- FINANCIAL ASSETS Current Assets Cash Accounts receiv_Ole (less allowance for doubtful accounts) Prepaid expenses (and other current assets) Total Current Assets Property. Plant. and Equipment Cable TV transmission and dis- tribution systems and related equipment Miscellaneous equipment and leasehold improvements Less accumulated depreciation and amortization Net property. plant eauipment Other Assets Excess of purchase price over value of net assets acquired at cost (goodwill) Franchise costs and deferred charges less accumulated amortization Page 11 of 15 BALANCE SHEET PRO FORMA PROJECTIONS. YEAR 1985 1986 1987 1988 1989 1 FINANCIAL ASSETS Current Assets Cash Accounts receivable (less allowance for doubtful accounts) Prepaid expenses (and other current assets) Total Current Assets Proverty. Plant and Eauivment Cable TV transmission and dis— tribution systems and related equipment Miscellaneous equipment and leasehold improvements Less accumulated depreciation and amortization Net property, plant equipment A tel..... A..., .. s... Excess of purchase price over value of net assets acquired at cost (goodwill) Franchise costs and deferred charges less accumulated amortization Total other assets Total Assets Page 11(a) of 15 BALANCE SHEET PRO FORMA PROJECTIONS YEAR. 1990 1991 1992 1993 1994 .. .n-�-.. , ,:•y-. .�-�:s��v �-�,r z±mT �rrn, ...:� � 4is .,�,. �. t+^?'"<sut�b^�rt?: r^s ^�n,�',rcr.. ..xi-u�T {rt��V � {T'✓ � r -- x LIABILITIES AND OWNER'S EQUITY Current Liabilities Accounts payable Accrued expenses and miscella neous liabilities Customer, deposits and prepayments Total Current Liabilities Notes payable to outsider Notes payable to Parent Company OWNER'S EQUITY Retained earnings and paid in capital Original equity Total equity Total Liabilities and Owner's Equity Page 12 of 15 BALANCE SHEET (continued) PRO_FORMA' PROJECTIONS YEAR 1985 1986 1987, 1988 1989 FINANCIAL Page 12(a) of 15 BALANCE SHEET (continued) PRO FORMA PROJECTIONS YEAR 1990 1991 i 1992 1993 1994 LIABILITIES AND OWNER'S EQUITY Current Liabilities Accounts payable Accrued' expenses and miscella- neous liabilities Customer deposits and prepayments Total Current Liabilities Notes payable to outsider Notes payable to Parent Company OWNER -S EQUITY Retained earnings and paid in capital Original equity "i Total equity Total Liabilities and Owner's Equity i. S: r' Krnr! M.rvr n ny-�:g.-±nr .m.,•.r>+s..sm^hitma.! .ysirwrrm !PtPs'77ea luka UW VW V" tio -flow, '1190 FINANCIAL Page 13 of 15 SOURCES AND USES OF FUNDS STATEMENT PRO FORMA _ PROJECTIONS YEAR 1985 1986 1987 1988 1989 Funds Provided By Beginning cash balance New equity funds contributed Additional Borrowings Revenue collected Total funds provided Funds Used For Capital expenditures Operating -expenses Interest payment Repayment of debt Dividends 6 other uses (specify) Total funds used Funds Provided By Beginning cash balance New equity funds contributed Additional Borrowings Revenue collected Total funds provided Funds Used For Capital expenditures Operating expenses Interest payment Repayment of debt Dividends & other uses (specify) Total funds used r: FINANCIAL Page 14 of 15 MISCELLANEOUS Ih'PORMATION A. Supply all applicable notes (accounting) to financial statements. B. Supply.all audited annual financial statements. FINANCIAL Page 15 of 15 Under each category bvelow, specify actual titles of anticipated personnel (e.g., system manager under General Administrative; access coordinator under Origination; etc.). In the parentheses ( ), indicate the equivalent number of full-time employees F; for each category (e.g., an entry might appear as $97,500 (7) --indicating seven em- ployees receiving a total of $97,500 in that particular year). FORECAST RESULTS YEAR 1985 1986 1987 1988 A. Plant 2. 3. 4. 5. B. Local Programming Local Origination 1. 2. — 3. — 4. 5. a Access 1. 2. 3. 4. 5. C. Institutional 1 2. 3. 4. 5. D. General and Administrative 1. _ 2. _ 3. 4. 5. E. Other 2. TOTAL TECBNICCAL OHFIATION FOM S SYS'*Eif CZNSTRUCTZON, CAPACITY AND DESS= TECHNICAL INITIAL SERVICE AREA AND LINE EXTENSIONS Page 1 of 25 1. Attach as an appendix to this application a map indicating the boun- daries of the service area to be constructed in each year of construction.* Applicant must specifically show any areas within the city that will not be initially served, and propose a line Extension policy under which initially unserved areas would be built. *Year 1 begins on the effective date of the franchise renewal. TECHNICAL CONSTRUCTION SCHEDULE BY MILEAGE (Basic Subscriber Network Only) j Category i Year 1 Year 2 II I i I i I E i ( a. Aerial plant miles I ! I ! i b. Underground plant { miles with conduit ! I ! I c. Underground plant { miles w/o conduit i L I i i d. Total plant miles { (for year specified)I ! ! I ! I I I e. Cumulative plant ! I ! { miles completed { ! { { (inception to date) i I i I I f. Cumulative-percent— age umulative percent—age completed { I I (inception to date) ! f { I Page 2 of 25 Total Construction Period: months from date of franchise grant. NOTE: Year 1 begins on the effective date of the franchise renewal. TECHNICAL CONSTRUCTION PRACTICES 1. System Construction a. Will construction be undertaken by a turnkey Contractor? b. If "yes:" (1) Has turnkey contractor been selected?* (2) Who is turnkey contractor? Page 3 of 25 [ l Yes [ ) No [ j. Yes [ j No 2. Discuss availability of work crews and equipment to ensure compliance with construction schedule. Detail outstanding agreements with construction companies or equipment suppliers. Supply copies of any commitments regard- ing this particular project. 3. Discuss proposed construction standards dealing with safety and relia- bility. List construction codes that will be followed. Describe planned safety/security provisions for the cable system. *It is expected that the franchisee will submit a copy of the turnkey draft contract to the city prior to execution. TECHNICAL Page 4 of 25 4. List or discuss standards to be followed regarding tower construction, marking and lighting. 5. Do you have a manual of construction practices to be followed by con— struction crews? [ j yes j j no If "yes," attach a copy of the manual as an appendix to this application. 6. Detail the basic construction practices that would be followed addressing the areas of continuity of existing service, minimization of neighborhood disruption, communications with the public and transfer to the new system. TECHNICAL CHANNEL CAPACITY AND SYSTEM DESIGN 5. Proposed System Design a. Mileage (1) Subscriber Network --basic subscriber system (conform to totals on page 2).. (a) single cable [ J or (b) dual cable [ J (2) Other (explain) b. Design Type Page 5 of 25 Plant Miles Briefly describe the type of layout that will be used to provide cover- age to the franchise area. Example: "hub system linked by AML, radial trunk layout using a remote headend interconnected to hub by super trunk, dual -trunk, dual -feeder and separate institutional network, each using 300 MHz equipment." TECHNICAL Page 6 of 25 7. Describe distribution system, cable and equipment. Give manufacturer, type and model number for the following.* Please Note: If any equipment proposed for use (in this or other sec- tions of Form I) is not presently available for purchase, this fact must be indicated (e.g., converters in development but not yet available). The ap- plicant is also required to clearly differentiate between all equipment that will be purchased for the rebuild versus that existing equipment that will 0" or might be "re -used." Cable (specify manufacturer and model number for all cable): Aerial Buried Drop Active Electronics: Trunk Amplifiers Bridging Stations Line Extenders Power Supplies Standby Power Systems Converters Addressable Taps Lock -Out Device Other Passive Electronics: Splitters Power Combiner Subscriber Taps Connectors Other *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de- tailed specifications for such equipment. TECHNICAL Page 7 of 25 8. Will converters be initially provided to all subscribers, for all tiers of basic service? ( ) yes j ) no If "yes," explain the type of converter(s) that will be used out— lining their basic cabilities/uses (e.g., descrambling, addressable...) If "no," explain under what condition converters will be made available. TECHNICAL Page 8 of 25 9. Describe plans to operate or contract for transmission services using the following bands: a. Common Carrier b. Cable Television P.elay Service (CARS) c. Multipoint. Distribution Service (MDS) d, Other TECHNICAL Page 9 of 25 10..Describe plans to operate or contract for any satellite earth station(s) including appropriate technical specifications (e.g., size of antenna; manu- facturer of antenna; low -noise amplifier make, model number and noise figure; receiver make and model number; standby power; etc.)* a. Has frequency coordination study been performed? b. Have on-site measurements been made? If "yes," to (a), and./or (b), attach capy(ies) as an appendix to this application. c. Will earth stations) be protected by FCC license? [ ] yes [ j no [ j yes j J no i J yes j J no *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de- tailed specifications for such equipment. �- TECHNICAL Page 10 of 25 11. SERVICE LEVE L SEPARATION a. Pay Cable Isolation Describe design specifications for the delivery of pay cable television, including methods of security (e.g., negative -option or positive -option traps, sync suppression, addressable converters, etc.). b. Tier Isolation If more than one basic service tier is to be provided, describe how lower tier subscribers will be isolated from receiving upper tier programming. 11 TECHNICAL Page 11 of 25 12. Describe headend design and reception facilities (including make and model numbers of antennas, signal processors, modulators, demodulators and FM processors).* Indicate whether signal studies or measurement programs have been undertaken in selecting the proposed site(s). Attach as an appendix to this application a summary spectrum utilization chart for each activated cable in the proposed system. a. Will HRC or IRC channelization be used? j ] yes j j no If "yes" to (a), indicate which type will be used. b. Will individual FM radio signal processing be used? [ 1 yes [ J no TECHNICAL Page 12 of 25 13. Describe proposed Emergency Alert System including make and model numbers of equipment. Indicate whether system will override all audio and video chan— nels or only audio channels.* Also indicate how the system will be activated and from where. 14. Describe plans for standby power at the headend, hubs and satellite ter— minal: Give make .and model numbers of equipment as well as time capacity. Indicate whether environmental systems (i.e., air conditioning and lighting) are to be powered during standby conditions.* TECHNICAL Page 14 of 25 17. Channel Capacity to and from Subscribers (Subscriber Network).* a. Downstream: (1) Frequency Spectrum —MHz (2) Channel Capacity (3) Number of channels initially activated** b. Upstream: (1) Frequency Spectrum — MHz (2) Channel Capacity (3) Will the amplifier hardware needed for upstream capacity be initially installed throughout the subscriber network? [ J Yes [ J No (4) If "no," will .the hardware be initially installed along any portion of the subscriber network? [ j Yes j } No c. If "yes" to either of the above questions, state how many channels will be initially activated for video or for data use, and indicate what equipment will be provided at the headend to activate these channels. Also discuss any pro— visions made to circumvent unwanted signal ingress (noise) in the upstream path. *If more than one cable, indicate spectrum and capacity of each and provide totals. TECHNICAL Page 15 of 25 17. Channel capacity to and from subscribers --Subscriber Network (continued) d. If upstream capacity will not be made available initially, indicate when or under what circumstances this capacity would be provided in the future. e. Justify the capacities Proposed for both upstream and downstream use in terms of projected service demand. TECHNICAL Page 16 of 25 17. Channel capacity to and from subs cribers--Subsc.riber Network (continued) f. Are specific frequencies allocated for initial, or future institutional use? [ i yes [ ) no If "yes," detail allocated frequencies and discuss any other provisions made, e.g., headend equipment, terminal equipment, institutions to be served, staff support... g. Discuss expansion capability with regard both to the short- term and the long-term, including specific references to the degree of flexibility for adapting the proposed system to in- creasing or changing capacity requirements. TECHNICAL Page 17 of 25 18. System Interconnection between headend and hubs: a. Microwave (1) Describe the type of microwave* and indicate whether spectrum availabilities have been determined to support the use of this equipment. (2) Number of channels: (a) Downstream: (b) Upstream: (3) Frequency spectrum: —MHz (4) Estimated Power: b. Cable (1) Describe the size and type of trunk cable (list make and model number):* *It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de— tailed specifications fog such equipment. TECHNICAL Page 18 of 25 18. System Interconnection (continued) b. Carle (continued) (2) List interconnection equipment (amplifiers, etc.), giving make and model number.* Indicate modulation technique to be used. (3) Frequency Spectrum (if more than one cable, list for each cable): (i) Downstream channels —MHz (ii) Upstream channels (4) Initial Activation: (i) Downstream channels (ii) Upstream channels —MHz * It will be presumed that equipment described or its equivalent will be used in actual construction. as an alternative, applicant may provide detailed specifications for such equipment. r Page 19 of 25 19. Amplifier Cascade Provide the following information for the longrst expected amplifier cascade in the proposed system: Feet of cable in longest trunk? Number of amplifiers in this trunk? How many of these will have AGC? Type: and size .of cable? Feet of cable in distribution feeder? Number of cascaded line extenders? How many of these will have AGC? Type and size of cable? 20. Design Levels What will the design inut and output levels and tilts be on the distri— bution system amplifiers? a. Trunk amplifiers: Input dBmV Output dBmV Tilt dB b. Bridger amplifiers: Input dBmV Output dBmV Tilt dB c. Line extenders: Input dBmV Output dBmV Tilt dB What will the minimum design level be at a subscriber's terminal from the drop? TECHNICAL 21. Technical Standards Page 20 of 25 List :be key system technical performance standards which will be met by the proposed cable television system. Provide calculations supporting these specifications associated with the following trans- mission aths. a. Worst-case satellite received signal at cable system input at headend. Carrier -to -noise ratio b. Worst-case off -air TV signal at cable system input at headend. Carrier -to -noise ratio C. System interconnection, if specified in Question 18 of this Section. Carrier -to -noise ratio Composite triple beat ratio Cross modulation If mi.-rowave is proposed for this interconnection state the design minimum^arrier-to-noise ratio and the fade margin and reliability for this level. d. Longest trunk and dist'ribation feeder, as specified above, to furthest subscriber. (1) Carrier -to -noise ratio (2) Composite triple beat (3) Cross modulation e. Worst-case furthest institutional originator to furthest subscriber including upstream path, downstream distribution system and longest super trunk effects). (1) Carrier -to -noise ratio TECHNICAL 21. Technical Standards (continued) Page 21 of 25 f. Worst-case satellite received signal to furthest subscriber (including downstream distribution system and system inter- connection, if neeaed) at the subscriber tap. Carrier -to -noise ratio Composite triple beat g. Worst-case off -air TV signal to furthest subscriber (including downstream distribution system and system interconnection, if needed) at the subscriber tap. Carrier -to -noise ratio Composite triple beat h. Worst-case furthest institutional originator to furthest sub- scriber (including upstream path, downstream distribution system and system interconnect, if needed) at the subscriber tap. Carrier -to -noise ratio Composite triple beat The applicant certifies and guarantees that these freely offered technical standards are within the financial capability of the proposed system as demonstrated on the pro forma statements and will be delivered to the sybtem. Signed: Title: TECHNICAL 22. Performance Tests Page 22 of 25 Describe procedures for initial proof of performance tests and ongoing performance tests including number and general location of test points. Describe the test equipment to be used; method and frequency of test equip- ment calibration; and forms and method of recording field data and permanent recordkeeping. 23. System Maintenance Describe procedures for routine preventive maintenance, including type and frequency of system inspection and testing, procedures for recordkeeping and regular internal reporting, number and qualifications of technical staff, and service facilities. TECHNICAL Page 23 of 25 1w 24. Is status monitoring of system to be employed? ( J yes ( } no If "yes," describe in detail the status -monitoring system you plan to use.* 25. Is full-time radiation (signal leakage) monitoring of the system to be done? If "yes," describe in detail the equipment to be used.* -It will be presumed that equipment described or its equivalent will be used in actual construction. As an alternative, applicant may provide de- tailed specifications for such equipment. TECHNICAL Page 24 of 25 26. Customer Complaint Policies Discuss procedures for responding to and resolving customer complaints. Give maximum response time for responding to and resolving customer complaints received during normal business hours, after hours, weekends and holidays. Indicate how subscribers will file trouble reports during office hours, after hours and on weekends, anti how the company will record and use such information, e.g., from dispatch records to service call summary reports. Will answering services or automatic answering machines be used at any time? TECHNICAL Page 25 of 25 27. System Map Attach, as appendix to this application, a map indicating esti— mated locations of headend, tower and antenna, hubs, studio, microwave facilities and earth station(s). 28. Attach, as appendix to this application, a headend block diagram showing all major components. Piovide separate illustrations for master headend, slave headends, hubs, ptc., as may be needed to describe the facilities to be provided. SERVICES INFORMATION FORMS SERVICES A. SUMMARY OF CHANNEL ALLOCATIONS Page 1 of 13 1. Please list, identify, and briefly describe the designated allocation of each channel on the proposed system (e.g., iCXYZ, ch 7, (ABC), Reno, NE; Public Access/Community Bulletin Board; ESPN -Sports). Be sure to identify all services which may share one channel. Separately identify each basic tier of service and premium services. a. Basic Services Service Tier Cable Channel Number Programming Services) SERVICES Page 2 of 13 SUMMARY OF CHANNEL ALLOCATIONS (continued) a. Basic Services (continued) Service Tier Cable Channel Number Pro rammin Service(s) I I I I I i I I i 1 I I I b. Premium Services Please list and identify each premium service and service level subscription required for access to premium services. Service Tier Cable Channel Number Programming Service Prerequisite I I I i ! I I I I I i I I I I i I 1 I I I I I SERVICES SUMMARY OF CHANNEL ALLOCATIONS (continued) 2. Broadcast Channels Page 3 of 13 a. Please list all local broadcast signals to be carried on the proposed system. Call Broadcast Network Cable Channel Letters Cit- Channel Affiliation* ! ! I I f 1 I I ! I ! I ! ! I I i I I ! I ! I I I I ! I I I i I I ! ! I t 1 ! I t I I i I I i I I I ! ! Network affiliation — ABC, CBS, NBC, PBS, IND, etc. SERVICES Page 4 of 13 SUMMARY OF CHANNEL ALLOCATIONS (continued) 2. Broadcast Channels (continued) b. Please list all distant broadcast signals to be carried on the proposed system. Call Broadcast Network Cable Channel Letters City Channel Affiliation ! ) I f f ! I I I i ! I I l I I I ! I I I 1 I ! t I SERVICES SUMMARY OF CHANNEL ALLOCATIONS (continued) f 3. U_ LI r W Local Origination and Access Channels Page S of 13 "Local Origination" channels are those channels offering local community programming over which the cable operator has primary editorial/production control, whether locally produced or acquired. "Access" channels are those channels which are designated for non -operator -originated local programming. a. Please identify local origination channels. Include any "auto- mated" channels which the operator will program. Be sure to include all services which may share one channel allocation. Cable Channel Number Programming Service(s) 1 0 0 51 SERVICES Page 6 of 13 SU101ARY OF CHANNEL ALLOCATIONS (continued) 3. Local Origination and Access Channels (continued) b. Please identify and list all proposed access charnels. Please include all services, including automated bulletin boards, which are anticipated on each channel. Cable.Channel Number Programming Service(s) SERVICES Page 7 of 13 SUMMRY OF CHANNEL ALLOCATIONS (continued) 4. Audio Services Please list and identify all Broadcast (AM, FM, Shortwave, etc.), Satellite Simulcast, Pay Service Simu'cast and other Cable Radio Services to be provided on the propos... system. Please separately Identify any "tiers" of service to be offered. Check: Are FM signals: j j FM allband? individually processed? Service/Call Letters Source/Cit ! i - i i . I i - f I i I i i j I i I I I I SERVICES SUMMARY OF CHANNEL ALLOCATIONS (continued) Page 8 of 13 4. Audio Services (continued) Service/Call Letters Source/Cit I I ! ! ! ! ! I I I I I I i I ! ! I ! I ! I I t I ! t SERVICES Page 9 of 13 B. LOCAL ORIGINATION AND ACCESS FACILITIES AND EQUIPIENT 1. Inventory of Current Facilities Please provide a list of all production facilities and equipment currently available. Include make and model number. Please identify separately which equipment is used: a. Exclusively for Local Origination. b. Exclusively for Access. c. Shared use for LO and Access. �i �I d SERVICES Page 10 of 13 B. LOCAL ORIGINATION AND ACCESS FACILITIES AND EQUIPMENT (continued) 2. Proposed Facilities Please list and describe all studio facilities and equipment which will be provided for local program production. Although facilities may be avail- able to all classes of users, please note that access studios and equipment (listed on next page) are to be proposed for priority use of access channel users, and should exclude any facilities or equipment listed on page 1. Please indicate location of production facilities and list make, model number and your approximate cost for each piece or grouping of equipment. a. Local Origination Studio o Location (approximate): o Size (approximate): o Will this facility also be available to access producers? L] yes [,J no b. Proposed Local Origination Equipment List (provide make, model number and your approximate cost for each piece or grouping of equipment*). Do not include equipment available to access channel users on an exclusive or priority basis. (1) Will this equipment also be available for access use: yes i J no �d *It will be presumed that equipment described or its equivalent will be provided. As an alternative, applicant may provide detailed specifications for such equipment. F SERVICES Page 11 of 13 B. LOCAL ORIGINATION AND ACCESS FACILITIES AND EQUIPMENT (continued) 3. Proposed Facilities Please describe production facilities and list equipment, if any, that will be available to access channel users on an exclusive or priari-ty- basis. Do not include local origination equipment listed in response to Question 1 (inventory) or Question 2 (Local Origination). Please refer to Instructions for the City's required equpment for PEG access. r` a. Access Studios: u Locations (approximate): o Size (approximate): b. List access equipment and facilities that will be made available to access channel users on an exclusive or priority basis (provide make and model number and your cost).* Eft tm ►�It t lid. w presumed that equipment described or its equivalent will be f` provided. SERVICES Page 12 of 13 C. SUPPORT FOR LOCAL ORIGINATION AND ACCESS PROGRAMMING* 1. Operating Budget (include only salaries, benefits, maintenance of produc- tion equipment, tape and film stock, miscellaneous supplies and promotion): This should be consistent with origination line items provided in the financial pro forma. a. First year b. Third year c. Fifth year d. Tenth year 2. Staff Commitment: a. First year b. Third year c. Fifth year d. Tenth year L/0 Access Full-time L/0 Access L/0 Access Part-time L/0 Access 3. How many part-time positions equal one full person year? 4. Approximately how many hours per week of local origination programming will be presented by system operator? Do not include automated programming, access programming, pay programming or programming received via satellite. Also, do not include repeat showings of a particular program. a. Programming produced locally by operator _ hrs./week b. Programming obtained from other sources hrs./week .TOTAL hrs./week 5. What percentage of operating budget listed above will be allocated to access channel production assistance? percent 6. Discuss local programming philosophy specificaly describing plans and F: objectives for access and local origination. Include the names of'organiza- tions and individuals contacted by the appli ant to assess local needs and desires. Include descriptions of current or past local programming. This specifically excludes programming obtained via satellite. u I l �l SERVICES Page 13 of 13 D. ACCESS CHANNELS AND ADMINISTRATION 1. Please attach a complete set of rules and procedures for the opera— tion of public, educational, government and leased access channels. The rules must describe: o availability of channels to various users; o availability of equipment and rules governing use of equipment; o scheduling procedures for reserving equipment and channel time; o any rates to be charged, including deposits; o copies of contract forms and application forms; and o availability of production assistance, etc. r7l p 0 7 RATE INFORMATION FORMS 1 1 1 fl 7 RATES A. PROPOSED RATES (Please List) Page 1 of 3 MONTHLY RATES INSTALLATION RATES Each I j Each lAdditionall I.Additiona-11 lst Outlet I Outlet I Ist Outlet I Outlet 1. Basic Services (list each tier separately) 1 ! I I t 1 ! I ! 1 I ! 2. Premium Services ! I i l 1 3. Other Rates (if applicable) FM Services Converter Rental Converter Deposit Parental Lockout Device Program Guide Other (specify) li H - RATES A. PROPOSED RATES (Please List) 4. Discount Packages (detail all services included) Page 2 of 3 I MONTHLY RATES J INSTALLATION RATES i 1 ( Each I I Each I I !Additional! !Additional! 11st Outlet I Outlet ( 1st Outlet Outlet I I 1 I I I { I I I I I 1 1 I 1 ! I ! t I f I 1 I ! { I I I ! I f I i 1 i f I 1 1 I I { 1 I I I I I 1 1 ! 1 I I f I I ! I 1 I I I ! E I I 1 I ! I I 1 I I 1 I I ( 1 I ! I 1 I i I 1 1 I I I f I t 1 ! l I I I ! I I I 1 h ! f l t E ( ! 1 0 RATES OTHER RATES (continued) Fag 3 of 3 S. Studio and Equipment Usage Describe studio and equipment usage rates for commercial and noncommer- cial users. Include rates for such services as studio production time, remote production time, supervision and instruction, leased channel costs, system playbackcosts, and editing costs. 5. Institutional Network List below any proposed rate schedule for institutional network including: a. commercial and noncommercial rates for video, audio and data uses; b. installation charges; c. rates for terminal equipment including installation, use, de- posits, etc.; and d. any other rates relating to the institutional networks. 7. Service to Governmental, and Educational Facilities a. Installation Fees'. l (1) One cable outlet (per facility) $ ' (2) More than one outlet (per facility) $ `� b. Monthly Rate $