HomeMy WebLinkAboutItem #46 - Discussion ItemCITY OF `.1IAMI. FLORIDA--
INTER-OFFICE MEMORANDUM
Mr. Howard Gary E)ATE June
28,
1982
FILE.
CABLE
TV
HEARING
FOR inn MEETING
FROM Miller J. Dawkins E �1 ,# f •j REi"RE=ES
City Commissioner =_
B
`.f ENCLOCURES -
Please schedule a hearing on the Cable TV Franchise for our July meeting.
I am desirous of knowing if the franchise holders have violated the
agreement signed with the City of Miami. Please see that proper
authorities from the franchise holders appear at this meeting.
MJD:rr
J
A. J. SARRANCO, JR.
STEVEN KELLOUGH
PETER H. KIRCHER
STEVEN CRIPPS
LAW OFFICES
BARRANCO AND KELLOUGN
PROFESSIONAL ASSOCIATION
{ June 25, 1982
f
Mr. Howard Gary,
City Manager
3500 Pan ArmericaiD . Drive
Miami, Florida 3�133
Dear Ur. Gary:
310 CONCORD BUILDING
66 WEST FLAGLER STREET
MIAMI, PLORIDA 00100-I8GO
TELEPHONE (305) 371-SS7S
Please be advised that I represent George Greene and Sable Cable
Communications, Incorporated. I request that you place on the agenda
for the July 22nd meeting of the City Commission for discussion the
cable television franchise granted td Miami Cablevision. We
respectfully request the personal appearances of Mr. Hermanaaski and Mr.
Alden at such meeting.
We would like to bring to the attention of the City Comussion
certain matters with respect to minority participation in this
franchise, local origination programming plans timetable and funding, as
well as the affirmative action plans.
I will present at the tim of the meting documentation concerning
the agreemnts between my client and Miami Cablevision. I have
instructed my client that he has a fiduciary duty to the black ccrrrninity
and to the City Commission to discuss matters publicly since
representations and promises were made to the City Cormission by the
franchisees with regard to my clients.
Since these issues may affect the Latin commmity, perhaps Mr.
Evelio Ley should be invited. Would it be possible for me to bring a
court reporter to the City Commission veeting? I would use the offices
of Friedrsan, In mbardi, Gendron and Brumm for such meeting. Further, I
would like to request that all parties who will be giving evidence
concerning this item be placed under oath.
0
Mr. Howard Gary
- 2 -
June 25, 1982
I certainly appreciate your attention to this matter. Thank you
for your courtesies.
t _ , Very truly-,,
AJB/je
cc: Mayor Maurice Ferre
Vice -Mayor J. L. Plummer
Commissioner De:ietrio Perez
Commissioner Miller Dawkins
Commissioner Joe Carollo
Kenneth Myers, Esquire
John Draper, Esquire
Mr. Evelio;Ley
Mr. George Greene
LAW OFFICES
BARRANCO AND KELLOUGH
PR0rC55,0r.Fi. ASSOCIATION
40
r
A
Mr. A.J. Barranco, Jr., Esq.
Barranco And Kellough, P.A.
310 Concord Building
66 West Flagler Street
Miami, Florida 33130-1863
Dear Mr. Barranco:
July 8, 1982
Re: Miami Cablevision
This will acknowledg-,eeceipt of your letter of June 25, 1982 in which it
was requested that the referenced matter be scheduled for City Commission
discussion on the July 22, 1982 Commission agenda. Please be advised that
this matter has been scheduled but not in the manner you requested.
Discussion items are ordinarily scheduled during the Committee of Whole
portion of the agenda at the request of a City Commissioner; matters
proposed for presentation to the Commission by citizens are usually
scheduled as a "Personal Appearance". Accordingly, your name will be
listed on the aqenda under "Personal Appearances" as representing George
Greene and Sable Cable Communications, Incorporated, to .address the
subject of Miami Cablevision.
Your letter contained additional requests that this office has no
authority to consider. Primarily, the City Manager does not have the
authority to compel individual citizens to apear before the City
Commission. However, by forwarding copies of your letter and this
response to Messrs. Charles Hermanoski and Paul Alden, they will be
informed of,their requested appearance. Since Mr, Evelio Ley was provided
a carbon copy of your letter originally, I am assuming you will be
responsible for his being notified.
As regards your request to bring a court reporter it is noted that all
City Commission meetings are recorded for subsequent transcription by the
City Clerk. Should*iyou require the service of a court reporter, a
decision as to the reporter (or firm) utilized is totally within your
discretion as all expenses associated therewith will be asumed by your
and/or your clients; the City will not bear any such espense. With regard
to the parties being placed under oath, that is also an item over which I
have no discretion.
;i
f
4 ,
Mr. A.J. Barranco, Jr., Esq.
Page Two
f
' Should you require an additional assistance in this matter,
Y q Y please feel free to
contact this office
Sincer y
ovi V . G r
E
City Manager
! cc: Mr. Charles Hermanowski
Americable of Greater Miami, Ltd.
Mr. Paul Alden
Miami Tele-Communications, Ltd.
Honorable Mayor and Members of
the City Commission
t
July 8, 1982
Mr. Paul Alden
Miami Tele-Communications, Inc.
P.O. Box 22595
Wellshire Station
Denver, Colorado 80222
Dear Mr. Alden
Enclosed is a copy of a letter recently received from Mr. A.J. Barranco,
Jr., an attorney representing Mr. George Greene and Sable Cable
Communications, Incorporated. Mr. Barranco has requested time on the City
of Miami Commission agenda on July 22, 1982 to discuss matters relating to
the above parties and Miami Cablevision.
As you will note from reading the City Manager's response to Mr. Barranco,
a copy of which is also enclosed, that request has been approved. This
letter is to fulfill the City Manager's promise to Mr. Barranco that you
would be advised of your requested appearance on July 22.
Should you have any questions please contact me at your convenience.
Sincerely,
Walter L. Pierce
Special Assistant
to the City Manager
WLP:db =
cc: Mr. A.J. Barranco, Jr., Esq.
9
I
l
July 8, 1982
Mr. Charles Hermanowski
Americable of Greater Miami, Ltd.
P.O. Box 859
Miami, Florida •33197
Dear Mr. Hermanowski:
;. '
Enclosed is a copy of a letter recently received from Mr. A.J. Barranco,
Jr., an attorney representing Mr. George Greene and Sable Cable
Communications, Incorporated. Mr. Barranco has requested time on the City
of Miami Commission agenda on July 22, 1982 to discuss matters relating to
the above parties and Miami Cablevision.
As you will note from reading the City Manager's response to Mr. Barranco,
a copy of which is also enclosed, that request has been approved. This
letter is to fulfill the City Manager's promise to Mr. Barranco that you
would be advised of your requested appearance on July 22.
Should you have any questions please contact me at your convenience.
S i ncerel y,
Walter L. Pierce
Special Assistant
to the City Manager
WLP:db
cc: htr. A.J. Barranco, Jr., Esq.
e
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1. 7vicricalAc of ;tiarli - Okirles lf�n;�icx.s'ri I-etter to Croryc! if.
Greene, dated July 22, 1981.
2. li tter Agrourvnt signed by Charles IfenTkancvski and 11. Alden,
dated Wtofkr 13, 1981.
3. butter of Acgre(mient signed by 1mcric:able of Greater Miami., Ltd.
and IIianu Telecomnuzications, Inc. , October 19, 1981.
4. litter of C1iarles bIcrmnowski to Hannibal M. 0):4, Jr. , Oated
April 20, 1982. _
5. Article f-rum The Mianu Ti its, July 1, 1982, entitlk:6 Cable 71 Finns
Clot Hiring blacks.
6. City Ordinance Section 404. Support for Ioc,al Origination
Progrz-u:rung .
7. Joint Venture Agrccincnt Miami Tole-C cn-•Ianications, Inc. and
A-nericable of Greater Miani, I.TU. , dated October 6, 1981.
8. I -Ca: rd C'naniel. hk rt Gnw.nt for I-ocal Crigina'L ien Prograiming 1,3e vi ng
T, Sc,n;Lnt of tb ? Local Corswiity, ba-�t-wcen iiia:ni Cz,.bh-,visicn wid
Sable Cable Corrruuiications, dated July 12, 1982.
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tWtWA/NIOW by
* An1ER1-CABLE +).
„ ynrrr $,11 /41. Cnnuefrrnrr
211h, - S W 1671h Ave . Munni. 11mi(m 33187
M.nI„„q lirAAr s%
P O yux 8b9 Miami. Flunda.33197
July 22, 1981
Mr. George II. Greene
President
8031 NW 22nd Avenue
,•Ii.ami, Florida 33147
Phone: 305/255.3770
Dear ,Mr. Greene:
Pursuant to our conversation,please be advised that we will
designate a Black Local Origination Channel on Tier I, which
of course will be incorporated in all tiers, and*give you, AS INC. EAT
and/or your perspective corporation the exclusive use of said
channel.
Ile further agree to. -construct a basic local origination studio
I wirl1 ancillary equipment necessary to operate same, and sup-
port and train you and your personnel to run said studio for
Black Local Origination.
We further agree to have the
t�•� brought in by satellite and
Local Origination Channel.
Black Entertainment T.V. Network
said program to be on the Black
It is further"understood when this channel becomes Profitable
we will enter into a reasonable lease for said channel. < Mean-
while this channel is being offered to you and•yolir,company on
a courtesy,__free of charge basis.
Ile hope to formalize this with a more detailed as r_eemen-c in the
future.
Sinperel y,1
A c.Jable of Mi mi
Char es Iiermanow'ski
General Partner
F.c. eed to;
Accepted l
M
s`=
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4 s�i6.�.c e j ya y / , /Cs'r C c�-t�� T1� ✓nc ��, AF
Cl �'/\,9 C.'i �U , 6 1 L/\ �./�L /('/ E/,ari i •�i'�E� ,G�.l!'
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Gc i e.k 77 � ; �e'�% i2,5 /li �.� �t .E'—�% .c�0/s► / �i:r fc' R
t.�•- �'D�>>2.��s / •1G �l✓e,{de s � �,(`Lr�+ �`%� PL
LUTTI-R OF A';-1T..-,1:NT octo}'-.r 11'., 1" '1
Cablcvi sion, a joint venture of Ancricable Associates of Greater
a, i Ltd. an,: t!iani Tole-Convnunications will designate a Rlacl: Local
C-;,jinating Ch.anncl on Tier 1, which of course will be incorporated in
r,ll tiers, and give you, Gcorge I1. Greene, as agent or your perspective
u%rporation the exclusive use of said channel including the right to
o_-^rate, nonage, sell and receive advertising revenues subject to the
overall policy direction of t•iiami Cablevision.
t:c further agree to construct a basic local origination studio with
ancillary cauip-nent necessary to operate same, and s� nit and '-iin
you and your hcrnonnel to run said studio for Black Local Origination.
fllrthir aqr n t�� have }, 9' eck tertai men, V. ' �:r��•:orl brow
l in b'� Zditc��a{dui pr�c,-ramo�oiitlacal\Criyiiiatioi:, r,
It is further understood v.e will ]ego you this channel on a long ter-,
ba:>is and tYnen this' channel becomes profitable %.:ill expect a noni.n.il
r^nthly pa,"cnt. Mcam;hile this channel is being offered to you and
yo,;r cc.pany on a courtesy, free of charge basis. We hope to forr..a1.i7.c
t).- s t�ith a more detailed agreement in the near future.
f .
Tti: �t
of Greater Miami, Ltd: ` fliami Telecommunications, 7r,c.
/0'/?- Y) . 10 -•Ili - Y/
7his agreement supr.rcedes the previous letter Hof agreement dated October 13, Ir_.l
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20h00 S W ' G7th 4„ r.l,•„ ,i ; „,,,o, 'S31 87
/ld,hn./ Ada,f•ct
P O Oux 859 M.wnt, r WtnLt 3319'
April 20, 1982 _
Mr. Hannibal M. Cox, Jr.
r•resident
Hannibal M. Cos Associates, Inc.
Consultants to Management
8601 SW 171 Street.
Miami ,'FL 33157
Dear Ilannibal:
Thank you for your} kind letter of Ajjri 1 13, 1982. I deeply regret
the lack of conununications between us, ho%-.ever I will endevor to
beep you appraised of whet is happening in the future.
Frankly, we hclvo boon attendinct many moctings and preparin; volum-
inous info::mation on our construction design and plans. As you ;^a
know, wo finally received approval from the City Manager to begin
construction after a very lengthy deli! . We hope to ma%c stood
prcgress on our project and after t•ro start hookincl up customers in
July, I feel that a.,c should begin the Advisory board muotinas.
Please be advised that I assigned Black Local Ori(lination channel
to George Greene, who I feel will clr. �) very effectivc job in rehrtr-
sent-ing the black community of .•Miami_. You may wish to touch base
with George in the interim.
I sincerely regret our lacl; of c;orlununiCat ions, since we have alc`ady
developed an acceptable affirmative .fiction 1)1.111 11;r ourselves; after
socno trial ��nd : rroi
I know
that we (,.,in work together in
the
future on other 1-'r.o3ec;t.s and
once we
1,eg.in meting with thy: advi:.ory
board, we %-jill nut lure touch
ag"in.
Looking forward to sooinrl -ou ir, the nol-Ir future, 1 re -main.
Si
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Cable TV Firms Not
Hiring Blacks
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Continued fron, page 1
are talking about low -paying,
% �'e
y c y ro
d '�
In our Americable office, the
non -decision making jobs,
they are not doing anything. .�
>• g 3 N
o a 3 --
head of accounts receivable is
;9 ^ m
' C3 o e
2 E d - 8
black."
"I have made commitments
Dawkins said he began to
the firms' sincerity
n E .. •o`- E c 01 o
c o
,o
in the past to Rev. Theodore
Gibson, and whether the man
question
after he saw a report the com-
an sent.on its hiring plans.
E z d 3 _
A o v v g � '�
is a commissioner now or not,
he will know that I am living
ng
PI didn't see anything of
substance. That's what made
.. �
E c > a a E Y
E d e �+ o u
„
up to my commitments, Her
manoski added.
me question their hiring prac-
c
A .. a : w A
°' s c s
at,.,..Eo.. x
A look at the contract that
tices,:' Dawkins explained.
,�
-°i rX n
his firm had to sign in order to
"get
The city commissioner said
w
v; ° 8yHermanowski
the cable television con -
also promised
cc"
_- E
.E $ E Y ,� E
tract for, the city of Miami
reveals that Miami Cablevi•
that minorities would share in
the profits from the cable ven-
p
�'r M a E 4
*on had to • make a, strong
.,
ture. But I haven't seen in
o a,^ 3 0
ton
wriblack are
•
o c,
fectimeaffirmativea plan
that calls minorities
for
ft
substantial lstockhwhere olders in the
venture," Dawkins declared.
E e
E.•
and women in phases of the
> > -0 .N o c %E E
operation in direct proportion
y" p
"In m opinion Her-
o L.v �, - o 0 0 . e ...re
Egi t- « d -- d z W
to their percentage in the
overall population.
manowski has not done any of
e o =.8 E a o
Dawkins said he is going to
' the things he said he was going
to do to involve minorities in
m in
o v
request that City Manage
Howard Gary research the
the total package, nor does it
if he intends to,"
.S cc o
a = y t 8 •vo .ae
contract, and he .said, "If I
sin as
Dawkins asserted.
K 12 o : - «a
find that he has vidlated it, I'm
4n favorof canceling the con-
Piano Lessons
y x
W o a = o "' �= a,
tract."
"If they are going to hire BO
percent minorities — where?"
1•,,,;,,, lesson, for your
•'-' oo °c a,' 'G o a
.O Vi C �p R7 C
Dawkins asked "if they are
,•ii,;dren at rec:uced rate
E G
E E ^ ._ o ;,�
B H d ►. �, 4 a E $
gong W have them leaning
the streets —no good. If they
.:.•;;::faint, I my H. For more n,
.
:j,r,ciatuM: sal •1. 2A)
o coWo
E C I-,
MVW
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c a o o r
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v
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- 29 - i
(6) provide a reasonable am -cunt cf
assistance without chaz;e to train
the staff of the co-.cn:ty access
corporation..
within ninety (90) days after the effective
•date of this Ordinance, the Licensee shall sutm:t to
the City Manager for approval a detailed plan and b.;'_cet
shcwin= what specific access services, facil...es and
egzipmen.t t..t Licensee shall provide and hcw the Licensee
shell allocate its dollar ecmmitment amens, those items,
including those enu-erattd in pare;raphs (1) throzch
(6) of this Subsection. :he Licensee lkhall also _n=::ale
in its plan how existing facilities May be used.
(b) :he Lice -see shall provide direct f:-a-c.e:
i ` -
cupper: to the cc- sn:ty access corporation. :n the fc
of an initial start-up contribution in the amc:nt of
two hundre: thousand dollars (5200.020.00) .,, be paid
directly to the ecm.nun.ity access corporation, within
thirty (30) days of its in.cczporat:on,.
Section. 404, Stipp:rt fc. Local OziS:nat:cn
(a) Durir.g the tens: of this license, the Li-ensee
shall provide local originatien programming. h e
Licensee'scorr:%itment to local origination prc;rarmina.
shell include a commit -tent to undertake at least the
following:
(1) establish, equip and maintain brza=cast
quality studio facilities and e:ect....._c
field prodicticn and electrcnic news
�fc
r
r
3'. -
gathering ncti:e !acili%ies f:r local
origination pragra.�:ng:
(2) ascertain coa.:unity nee% for local
oric:nation pra;.- ,;, wh.ch
ascertairnent shall involve
and mincrity gro-zpe:
(3) hire staff with specific resp=nsizi_ity
to develop ar,d prod,;ce local programs
resncnsive to the needs of the
and to participate in training prcc:a..:.s:
(S) provide mincrity pro: -a-=
hil_ ;ua: progra-_ i ng, that reflects
the social, eccno-.:c and c�::t,.ra:
ezperien:es and pers-pectives of the
FisFan.= pip::ration, the t;:ack
pcp�;latio . and other ruin:. _ty an!
liny�ietic gro'.ps Within the City c`
miami and foc::ses on needs cr interests
of the partic�;:ar mincrity gr: -s with
whom the pro3rams identify:
(S) provide progra.::r.ing that fcc.ses or.
the needs and interests of women. senior
citizens, veterans an: the han:icappe!
in the City of k:s.=i: and
(6) develop and implement a :o,- ski:ls
ar,d training program., Ces:gnei :; tra;n
an! employ minorities or. an or.gcin3
basis in the research, prodict:cn,
933
t 0
transmission and
of local programming.
Within. ninety (90) days after the effective
date of this Ordinance, the Licensee s^al: submit tt
the City Yanacer for ap;rcval a detailed r:a- show:-;
how the Licensee shall a::ccate its do::a: cc-.r%,tr.e-:
among the purposes en,.r.erased in peta=ra;hs (1i :.
(6) of this SQtsect:on. :ne plan s`.c.::d ::ea::-., .n2:catt
whether and to what extent staff, fac:__ties or ec_rent
will, be used for both access proc:ar..ir- and loon:
origination progra- ins.
Section GCS. knn-za: Ccn:: i_uticns .,. Be
! A'lcca•ed tv the C•tv
j (a) For the p;;rpcses herein specified, the
Licensee sht:l melee annual c=n:r:b:::o-s payable ._ _^e
City in the aa.ount of three (3) percent of the Licensee's
gross revenues or six h•.:-dred thousand d=::ars
(5600,000.00), whichever is greater. The City sha::
use the contributions made pursuant to this S::sec::=n
to stern:late co- unity use of the System's access
services; to provide direct financ:a: s_rrcrt to the
community access corporation.: to experiment w.:n and
test the uses of cable by the various City and
educational institutions to reach the public: to
implement uses and develop plans for the use of cable
television as an integral part o: ::-.e C:ty's operations!
and for other public purposes that the City deems
appropriate. For the first five (5) years after the
establishment of the cor..-::r.ity access corporation., the
City shall contribute annially to the ccm unity access
JOINT VENTURE AGREEMENT
THIS AGREEMENT made and entered into as of this j � day of
( r"". .���,�, 1981, by and -between Miami Tel e-Communi cations, Inc. a
Florida Corporation (hereinafter "MTI"), and Americable of Greater Miami, LTD.
a Florida limited partnership (hereinafter "Americable"),
WITNESSETH THAT:
WHEREAS, MTI and Americable (herein together sometimes called the
"Joint Venturers", "Venturers" and severally called "Venturer") desire to form a
joint venture for the purpose of entering into a license agreement (herein after
the "License") with the City of Miami, Florida (herein "City'), constructing and
operating a CATV system (hereinafter the "System") in the City, all pursuant to
such City ordinances, regulations, requests for proposals or proposed agreements
that may now or hereafter be enacted or promulgated by the City (hereinafter
collectively called the "Ordinance"); and
WHEREAS, the Venturers have concluded it will be mutually advantageous
to accept the License from the City, as negotiated with Americable and to enter
into a joint venture for the construction and operation of such system in
accordance with the terms and conditions of this Agreement;
NOW THEREFORE, in consideration of the premises and of the mutual
covenants and agreements hereinafter contained, the parties hereto agree as
fol lows: t
I. Formation and Name. The Joint Venturers hereby associate them-
selves together as a joint venture (herein generally called the "Venture" or "Joint
Venture") for the purposes enumerated in Section 2 hereof. The name of the
Venture shall be Miami Cablevision (herein "Miami Cable") Such name shall be
registered as provided by the laws of the State of Florida or given such other
legal protection as may be deemed advisable. The principal place of business of
the Venture is in the City of Miami, Florida. The Venture shall be governed by
the lows of the State of Florida and the terms of this Agreement, and nothing
contained herein or in any other agreement relative hereto shall constitute or
establish the relationship of general partners or partnership between the
Venturers for'a,ny purpose other than those stated herein.
2. Purposes. The purposes of the Venture shall be as set forth in the
preambles to this Agreement, and none other; provided always, that the Venture
shall have ail the powers reasonably necessary or incident to the carrying out of
its purposes aforesaid; all subject to the terms, provisions and conditions herein
contained.
%t' %
Page I of 14
3. Term. The Venture shall begin on the date hereof subject to
registration of the name of the Joint Venture and shall continue until termina-
tion as provided for hereinaf `er.
3.1 The term of the Venture shall continue so long as the Venture
retains a CATV License from the City, is a party to such License agreement with
the City, or both, including subsequent amendments and renewals of such License
agreement.
4. Capi tal.
4.1 Initial Capital: The initial capital (herein called the "Initial
Capital") of the Venture shall be provided equally by each Venturer and shall be
in the initial aggregate amount of Fifty Thousand Dollars ($50,000) which shall
be used to prepare a full presentation to lending institutions for acquisition of
bank financing as hereinafter provided. MTI's investment of $25,000 shall
represent a one-half interest in Miami Cable and the Americable's investment of
$25,000 shall represent a one-half interest in Miami Cable. The initial cash
capital contribution of each Venture shall be paid in full in cash simultaneously
with the execution of this Agreement. It is understood and agreed that neither
Venturer shall be obligated to contribute, provide or advance any additional
funds to the Venture over and above its contribution to Initial Capital, as
aforesaid, except as may be hereinafter expressly provided.
4.2 Initial Loan: Upon acceptance of the License, MTI shall loan
Two Million Dollars ($2,000,000) to the Venture which shall be used. to provide
the security fund as provided in Section 1001 of the proposed city ordinance.
This initial loan shall'bear interest at the prime commercial lending rate set,
from time to time, by the Bank of New York, or at the incremental rate of
borrowing of either Venturer whichever is higher. Notwithstanding the
provisions of Section 18 hereof this initial loan shall be repaid from the first
monies received by the Venture.
4.3 Development Capital: In connection with the acquisition of,►hank
financing as set forth in Section 6 hereof, the necessary investment (herein
"Development Capital") in the Joint Venture shall be provided by the Venturers
as follows:
The Venturers shall each make equal subordinate loans to the
Joint Venture which Development Capitol loans shall be repayable as set forth in
Section 18 ond.sholl bear interest at the prime commercial lending rate set, from
time to time, by the Bank of New York, or at the incremental rate of borrowing
of a Venturer, whichever is higher.
4.3.1 Shortfalls in Development Capital: In the event there shall
occur any deficiencies in Development Capitol, there shall be a "loan call" by the
Management Committee (hereinafter referred to in Section 8) to each Venturer
to make up the shortfalls. The Venturers shall make up such deficiency or
deficiencies by making equal subordinate loans. In the event, and to the extent
that either Venturer does not make its loan, the other may do so. Loans made in
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response to a "Loan Call" shall be repayable and bear interest as set forth in 4.2 ,
above.
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S. Funding To provide funds to the Venture to the extent funds which
have been obtained through loan calls and third party financing are insufficient,
the Venturers shall loan funds on a subordinate basis' to the Venture for
construction and operation of the System to the extent such cannot be borrowed
from institutional, bank, or other third -party lenders. Such loGns as may be
f required in excess of senior debt and Development loans, shall bear interest as
set forth in 4.2 above and be repayable as set forth in Section 18. Loans by the
" Venturers shall be repayable solely from Joint Venture assets in the manner set
forth in Section 18.
6. Financina Arrangement. The Venture shall use its best efforts to
seek sufficient third party financing for the construction of the System.
However, it is recognized by the Venturers that the Venture may not be able to
obtain all financing from third party lenders and that Americable, as the
Manager of the Venture, may have to issue loan calls. The necessary
Development Capital loans required to obtain and retain reasonable bank
financing pursuant to this paragraph have been designated as "Development
Capital, and shall be provided by the Venture in accordance with Section 4.2
I
herein. During the consruction period of the Joint Venture, each party will
advance to the Joint Venture an amount of approximately $10,000,000 as such
Development Capital Loans.
7. Interest, 'Profits and Losses. The interests of the Venturers in the
Joint Venture, and in the division and allocation of the profits and losses thereof,
shall be as follows:
MTI Fifty Percent (50?0);
Americable Fifty Percent (50%)
No Venturer shall at any time be obligated to personally reimburse the other, by
way of contribution on account of any loss as may be incurred by either
Venturer. Insofar as Federal and State Income Tax returns are concerned, any
deductions or credits applicable for Federal Income Tax purposes, including
deductions for depreciation and investment tax credit, shall be allocated on an
equal basis.
8. Overall Management and Operation of the Venture. Subject to the
terms and provisions of this Agreement and a Cable Television Management
Agreement with Americable, Inc., a Florida Corporation, to be negotiated later
which shall contain terms and conditions consistent with industry standards
(hereinafter the "Management Agreement") management of the business and
affairs of the Venture shall be vested in a management committee (herein called
the "Management Committee") composed of the representatives designated from
time to tirne by each of the Venturers. MTI and Americable collectively may
each designate one or more representatives to the Management Committee, but
MTI and Americable shall each have but one vote on the Mona,ernent
Page 3 of 1 4
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Commi ttee. The tManagernent Committee representatives of each of the
Venturers shall initially be composed as provided in Section 17 hereof and '
thereafter designations of representatives on the Management Co .imittee shall
be made by MTI and Americable respectively (subject to the provisions of
Section 25) in writing addressed- to the other Venturer. Unless any action of the
Venture is herein specifically required or permitted to be effected only upon the
concurrence of some other number or combination of Venturers, no Joint Venture
action shall be taken except by the unanimous consent of such Management
Committee.
8.1 Meetings of the Management Committee. There shall be an annual
meeting of the Management Committee called by Americable for the
presentation of the annual operating and capital budget; prepared by Americable
pursuant to the terms of the Management Agreement. In addition, meetings of
the Management Committee may be called by either a Management Committee
representative of Americable or a Management Committee representative of
MTI, at any tirne and from time to time, by giving 10 days notice of such
meeting stating the time, place and purpose of such meeting, sent by United
states mail, postage prepaid, to the members of the Management Committee.
Any action acquired to be taken at a meeting of the Management Committee,
may be taken, without notice, at a meeting held by telephone conference call
with all of the designated members of the Management Committee participating.
9. Certain Duties. Responsiblities and Compensation. Subject to the
terms and provisions of this Agreement, and to the supervision and control of the
Venturers and the Mdnagement Committee, Americable Inc. (under the terms of
the Management Agreement) shall be specifically charged with the following
duties and responsibilities, and shall be entitled to the out-of-pocket costs and
management fees specifically provided for in this Agreement, and not otherwise.
9.1 Supervision of Construction: Under and pursuant to the terms
of the Management Agreement, during construction, Americable, Inc. shall
exercise day-to-day management, supervision of all work, and control of the
design and construction of the System, including but not limited to orrangments
for pole attachments and clearances by applicable utilities, application and
negotiation for all necessary easements and right-of-way crossings, and
supervision of independent contractors. In addition, the Venture shall pay
Americable,' Inc. for reasonable out-of-pocket expenses incurred during such
constructon supervision.
9.2 System Management: Subject . to the control of the
Management Committee, and pursuant to the terms of the Management
Agreement, Americable, Inc. shall be in charge of the day-to-day management of
the System, and shall be responsible for the legal, accounting, and other
ministerial requirements of the Venture, and to this end, Americable, Inc. will:
Page 4 of 14 �
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9.2.1 Have the authority to and shall open and maintain banking
accounts and maintain accounting records as provided in Sections 15 and 16, end
furnish monthly reports to each Venturer, disclosing in reasonable detail the
status and progress of the development of the System including, without
limitation, status of development, construction costs, schedules, lease payments
and current financial requirements.
9.2.2 Promptly pay all obligations incurred in connection with the
planning, engineering, and development, and all taxes and other charges properly
attributable to the Venture to the extent of the available funds of the Venture.
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9.2.3 Prepare and file all application, reports, or other documents
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required to be filed by the Venture pursuant to the requirements of third -party
agreements such as pole contracts, or to the requirements of appropriate
governmental agencies, including but not limited to the City and the Fee-eral
Communications Commission.
9.2.4 Conform to policies and programs established and approve-d by
the Venturers or the Management Committee. As required, MTI will coopee ate
with Americable, Inc. in providing such information and other support es is
reasonably necessary to enable Americable, Inc to carry out its duties and
responsiblities enumerated in this Section 9.
9.2.1j Americable,inc. shall be compensated for such management of
the System by payment by the Venture of a sum equal to five percent (540) of the
gross revenues (as defined in the Management Agreement) of the System, to be
computed annually based on the reported revenues for each fiscal year of the
Venture.
9.3 The Venturers agree that with respect to pay and ether
programming services which the Venture may elect to utilize in connection with
the operation of the system, MTI, or it's affilites, shall have the right, if it is
able to,do so, to supply such programming to the Venture providing only thcrt W
the services are substantially the same as provided by MTI or it's affiliates to
any third party, and (ii) the price charged to the Venture for such gooris or
services does not exceed the price for which the Venture can obtain -Such
programming on an arm's-length basis directly from the Vendors to ;►MITI.
Marketing of pay services shall be made with priorities which are satisfactor. y to
MT I.
10. Organizational and Operating Expenses. Organizational and
operating expenses shall be borne and paid for by the Venture as providLnd in
Sections 4 and 5 of this Agreement and shall not be charged to the respective
Venturers. Those expenses to be charged to the Venture shall include (wittinout
limitation) the following. �
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10.1 All off -site expenses and costs incurred through third
parties in the construction of the System.
10.2 The cost of supplies, material and equipment required by
the Venture. _
10.3 Reasonable Iegol and auditing expenses as may be incurred
from time to time.
10.4 Such other expenses as the Venture may incur as
contemplated by this Agreement, or as may hereafter be agreed
upon by the Management Committee, including, but not limited
to, those expenses incurred pursuant to Sections 9.1.
11. BorrovAna. Except for the financing contemplated in section 6
herein, the Venture shall not, nor shall any Venturer on behalf of the Venture,
directly or indirectly, (i) borrow money or become obligated upon or liable for
any monies borrowed; nor (ii) assume, guarantee or act as surety for any
obligation or liability (whether for borrowed money or otherwise) of any other
person, firm or corporation; without obtaining in each cese the prior written
consent of both of the Venturers.
t:
12. Contracts. Every contract and agreement obligating the Joint
Venture or to which the Venture may become a party (including any and all
contracts for the construction of the System, and any and all leases of all or any
port thereof) in excess of $100,000 shall be in writing and shall be executed by
one of each Venturer's Management Committee representatives.
13. Conflict of Interest.
13,1 Except with the wri tten approval of both Venturers, the Venture
shall not employ, contract with, purchase from, deal with or pay any
compensation or any other remuneration, however termed, to either Venturer, or
any officer, employee, or representative of either Venturer, or any person, firm
or corporation in which either Venturer or any officer, employee, or
representative of either Venturer is directly or indirectly interested, connected
or related. Notwithstanding the generality of the foregoing sentence, the
Venturers agree that with respect to any materials, equipment, or other services
which the Joint Venture may elect to utilize in connection with the engineering,
construction or operation of the system, Americable or its affiliates shall have
the right, if it is able to do so , to supply such goods and services to the Venture
providing only that (i) the services are substantially the some as provided by
Americable or its affiliates to any third party, and (ii) the price charged to the
Venture for such goods or services does not exceed the price for which the
Venture can obtain such goods or services on an arms -length basis directly from
the vendors to Americable.
13.2 The activities of the Joint Venture created herein are expressly
limited to the project outlined in the preambles of this Agreement, and to
activities related to the CAN market represented by the City of Miami, all
other relationships between the Venture and either MTI or Americable or their
respective stockholders, affiliates, or subsidiaries, shall be on a fully competi-
tive, fair market basis.
A
14. Banking and Disbursement of Funds. All funds of the Venture shall be
deposited in its name in accounts in such banks in Miami as shall be selected by
Americable, Inc. as the Manager of the: Venturer. All checks, drafts and
withdrawals therefrom shall be made -in the manner and under terms established
by the Manager subject to the review of the Management Committee.
15. Books and Records; Audits. The Venture shall keep and maintain a
complete and accurate modern system of records and accounts, reflecting all
transactions of the Venture. Separate accounts shall be kept for each Venturer
to record Copital contributions, Advances, accrued interest, undistributed profits
and losses and distributions. The records and accounts of the Venture shall be
maintained and kept at the offices of Americable, Inc. and each Venturer shall
hove the unrestricted right, personally or by authorized agent, to inspect the
records and accounts of the Venture and to make extracts or copies of the some.
• 16. Ddsignated Representatives. In order to facilitate the operations of
the Venture, the Venturers shall, from time to time, each designate in accor-
dance with the provisions of Section a hereof one or more agents or representa-
tives to represent them in connection with the affairs of the Venture, and upon
the Management Committee. Such designees shall have the cull-ority to execute
all instruments for and on behalf of their respective principals,
16.1' Until further notice, John C. Malone- %and Paul Alden
(individually and not jointly), are designated such representatives of MTI.
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16.2 Until further notice, Charles Hermanowski and
Joel Ehrenkranz (individually and not jointly), are designated
such represent itives of Americable.
17. Distribution of Available Funds. All funds (herein
called "Available Funds") of the Venture, from whatever source
derived, not reasonably required for the purposes of the Venturer,
shall be applied and distributed from time to time as follows
in the following order, and the provisions of this Section 18
shall govern all distributions on account of advances, interest,
return of Initial Capital, Development Capital•, and disbursement —
of profits and losses:
17.1 To the payment of funds loaned and accrued
interest on all sums"advanced by third party lenders, as con-
templated in Section 6.
17.2 To the payment of advances made by the
Venturers as loans for Development Capital, and as loans to
cover shortfalls in Development Capital, in accordance with
Section 4.3 and 5. Any Available Funds remaining after
application and distribution, as aforesaid, shall be distributed _
equally to the Venturers, without preference one over the other.
18.1 Right of First Refusal
18. 1. 1 Option to Purchase. If, at any
time after six years from the date a valid License Agreement
is entered into by the City and the Venture, either Venturer
(herein "Offeror") desires to transfer its Joint Venture
interest, pursuant to a bona fide written offer from a prospecti.-_ve
unaffiliated third party purchaser, he shall first offer such
interest for sale in writing to the other Venturer (herein
"Offeree") at the price and upon the terms set forth in
such written offer; provided, however, that the Offeree shall
not be required to match any offer the consideration for which
is not practicably obtainable except by the prospective purchaser-z
such as specific land or shares or securities of a close
Page 8 of 14
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corporation or an interest in a partnership, and if any
consideration is not so practicably obtainable, the Offeror
shall not be permitted to sell his interest to the prospective
purchaser upon the terms contained in the written offer.
18.1.2 bankruptcy. Upon the bankruptcy, or any
proceeding in the nature of bankruptcy under the Bankruptcy
Act of the United States, of either Venturer, the interest
then owned by him shall be offered (or deemed offered) for
sale to the other Venturer upon the date of bankruptcy of a
Venturer.
18.1.3 Exercise of Option. Within 20 days after
receipt of the written offer referred to in 18.1.1 is
deemed to have been made, the Venturer receiving such notice
("Offeree") shall give to the Venturer offering such interest
(the "Offeror") written notice of his acceptance of such offer
or his rejection of such offer. If, after the expiration of
the option period brovided for in this Section, the interest
offered pursuant to this Section has not been accepted by
the Offeree, then the option herein granted shall be deemed
void and the Offeror (a) in the case of an offer pursuant
to Section 18.1.1 may transfer such interest in accordance
with the terms and conditions of the bona fide written offer
referred to above (but if such terms and conditions are not
met such interest shall again be subject to the restrictions
of this Agreement), to the person making such offer, provided
that such third party purchaser shall, upon the purchase thereof,
become a party to this Agreement by executing an appropriate
instrument to that effect or (b) in the -case of an offer or
deemed offer pursuant to Section 18.1.2 may dispose of such
interest in any manner whatsoever, provided that all trans-
ferees shall be bound by all of the terms of thir. Agreement,
and shall eVo cute appropriate instruments to that effect. The
Page 9 of 14
failure of the Of feree to accept an offer made or deemed made,
writing, prior to the rejection of such offer.
18.1.4 Payment of Purchase Price. Unless otherwise
mutually agreed to by the parties, payment of the purchase price:
of joint Venture interest offered or deemed offered pursuant to
Section 19.1.2 shall be in cash, by certified or cashier's check.
upon tender of appropriate documentation, on a date to be
mutually agreed upon, which date shall -be in no event be later
than 30 days after delivery of the notice of acceptance of an
offer made or deemed made.
19.1.5 Bankruptcy. For the purposes of this Agreemer_:---It,
a Venturer shall be considered bankrupt upon the voluntary filin
of a petition or other proceeding by such Venturer or upon the
commencement of any such proceeding against such Venturer which
proceeding remains undismissed for a period of 60 days, under
j the bankruptcy laws of the United States or of any state, and th.--
date of bankruptcy, for all purposes of this Agreement, shall
be deemed to be (i) the date of such filing in the case of a
voluntary proceeding or (ii) the 60th day following the date of
filing in the case of an involuntary proceeding.
19. Right of First Refusal for Entire Venture. At
any time after six years from the date a valid license agreement
is entered into by the City and the Venture, either Venturer
has the right to obtain an offer to purchase the entire Venture
interest of both Venturers, provided the offering outside third
party is a bona fide third party having no present interest,
directly or indirectly, in either Venturer, its parent,
subsidiary or related companies. In the event such bona. fide
written offer to purchase the entire Venture interest of both
Venturers is obtained, in writing, the Venturer so obtaining
the offer shall first offer the identical proposition for
purchase, in writing to the other Venturer, at the price and
upon the terms set forth in the written offer (based upon
Page 10 of 14
fifty percent of said price). Within twenty days after receipt
of the written offer referred to herein, the Venturer receiving
such notice shall give to the Venturer offering such interest
to the outside third party written notice of his acceptance of
such offer or his rejection of such offer. If, after the
j expiration of the option period provided for in this section,
the interest offered pursuant to this section has not been
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Iaccepted by the other Venturer, then the option herein granted
shall be deemed void, and thereupon both Venturers to this
agreement shall be obligated to sell their respective interests
to the outside third party upon the price and terms set forth
in the written offer. It is the intent of this paragraph
that either party to this Venture, after six years, in addition
to the right of first refusal set forth under section 18.1 above„
i
shall have the right to obtain a bid from an outside third party
to purchase the entire interest of both Venturers herein, thereuplon
giving the other Venturer the right to either match the offer by
purchasing the offering Venturers' interest, based upon fifty
percent of the offered price and terms, or in the event the other
Venturer rejects such option, both parties will be required to
sell their entire interests in the Venture to the outside third
party offering to purchase same upon.the price and terms offered..
20. Restrictions on Alienation. Except as provided for in
Section 18 hereof and in this Section 20, no Joint Venture intere.-st
of any Venturer, no participation or interest in the Joint
Venture interest of any Venturer and no interest, if any, of any
Venturer in any Joint Venture property, or land devoted to the
purposes of the Venture, may be directly or indirectly,
voluntarily or involuntarily sold, assigned, transferred, pledge di,
encumbered, or otherwise alienated; and any and every such purpo =ted
sale, assignment, transfer, pledge, encumbrance or other alienatiLon
except as rnay 'be required by third party lenders%of the Venture,
shall be null and void for any purpose whatsoever; provided,
however, that the restrictions of this Section 20 shall not appl..
Page 11 of 14
to the sale, assignment, transfer or alienation by any Venturer
of its Joint Venture interest to any wholly -owned subsidiary of
such Venturer but such Venturer shall remain fully obligated
under the terms hereof following such assignment.
21. Continuation of the Joint Venture. Any dissolution of
the Venture as may result from action undertaken under Sections
19 or 20, hereof shall not constitute an election by either
of the Venturers to terminate and wind up the Venture to the
extent that the same may be considered as "continuing" pursuant
to the rules and regulations of the Internal Revenue Code for tax
purposes and the Florida Uniform Partnership Law.
22. Consents and Approvals. Whenever the consent or approval of a
Venturer is required hereunder, such consent or approval shall not be
unreasonably withheld or delayed.
23. Notice. Any notice required or permitted to be given under the
provisions of this Joint Venture Agreement shall be in writing, delivered
personally or by registered or certified moil addressed to the Venturer at the
IF address hereinafter set forth opposite the name of the respective Venturers, or
at such other addresses as the respective Venturers may hereafter specify in
wri ting:
As toMiarrii Te1e-Communications, Inc
c/o TO Development Corporation
'-..(;all Box 22595, Wellshire Station
• Denver, Colorado 80222
Attention: President (with a
copy similarly addressed
and marked Attention: Legal Department)
As toAmericable of Greater Miami
c/o Charles t-lermanowski •,
17301 Old Cutler Rood
Miami, Flarida 33517
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24. Indemnification. The Venturers each hereby agree to hold the other
harmless from and against any and all claims or demands which may arise from
actions taken by such Venturer, prior to or of ter the execution hereof with
respect to their individual applications to the City, and, from and after the
execution hereof from claims or demands which may arise as a result of actions
taken by either Venturer which have not been unanimously approved by the
Management Committee.
CCT,
25. Programming of Local Orgination Channels. The Venturers agree
f
that MTI shall be granted, and shall retain during the term hereof unless
mutually agreed by the parties, for its sole and exclusive economic benefit, the
jright to provide programming and advertising, over the two local origination
s channels which have been designated to provide local programming for the
benefit of the City's Black and Latin communities. MTI shall be responsible for
programming expenses over such channels and shall be entitled to all revenues
from local advertising over such channels.
26. Land and BuIldina. The Venturers agree that the Venture shall
acquire from Americable, for the benefit of and use by the Venture, the land in
Micmi and the building, together with all other fixtures, thereon, which was
` previously acquired by Americable, at Americable's cost of acquisition of such
property, and cost of improvements thereto and holding cost thereof, including
interest. The Joint Venture shall assume and pay the purchase money note cnd
mortgage obligation in accordance with its terms and said note and mcrtgage
shall be considered a third party loan repayable as provided under Section 18.
27. Interconnection. Notwithstanding the provisions of Section 14
hereof, the Venturers hereby agree that Americable shall have the right, at no
cost, to interconnect its CATV systems with the Venture's system in the area
surrounding the area licensed to the Joint Venture by the City of Miami•.
28. Captions. All section titles or captions contained in this Agreement
are for convenience only and shall not be deemed a part of the context hereof.
29. Governing Law. This Agreement shall be regarded for oil purposes as
a Florida document, and the validity and construction thereof shall be
determined and governed by the laws of the state of Florida nothwi thstonding
that any of the parties may, at any time, be domiciled outside the State of
Florida.
30. Parties Bo«id. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors, legal
representatives, and to the extent and under the conditions provided herein, their
respective assigns.
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31. Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, and all of which taken together shall
be deemed one agreement.
32. Amendment. This Agreement shall not be amended orally but only by
amendment in writing executed by each Venturer.
33. Entire Agreement. This Agreement sets forth the enure agreement
and understanding of the parties in respect of the transctions contemplated
pursuant to this Agreemiit and supercedes all prior agreements, arrangements
and understandings relating to its subject matter.. In. connection with any
litigation, including appellate proceedings, arising under this Agreement, the
prevailing party shall be entitled to recover reaonable attorney's fees and costs.
34. No Waiver. No waiver of any breach or default under this Agreement
shall be considered valid unless in writing and no such waiver shall be deemed a
waiver of any subsequent breach or default of the same or similar nature.
35. Severance. In the event any section or provision of this Agreement is
determined to be unlawful, such provision shall be severed from this Agreement
and the remaining provisions shall be given full force and effect.
IN WITNESS WHEREOF, the parties have hereunto set their hands and
seals, all and as of the day, month and year first above written.
(CORPORATE SEAL)
ATTEST:
s- sttant q ret y
Miami Tel e-Communications, Inc.
By
ohn C. Malone, Vice President
America le -of Mat -Miami, Ltd
1 , l
By
leneral I3ar1ner
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LEASED CHANNEL
AGPF-LrvILNT FOR LOCAL ORIGINATION PROGRAMMING
SERVING A SEG14ENT OF THE LOCAL C0MMUN11Y
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i' THIS AGREEMENT made and entered into, effective the day of
C.
Jae, 1932, by and between MIAMI CABLEVISION (h1CV) a Florida joint
venture, and SABLE CABLE COMMUNICATIONS (SCC), a Florida corporation,
W I T N E S S E T H:
WHEREAS, 1`0CV is a Florida joint venture between Miami Tele-
Communications, Inc. (a Florida corporation) and Americable of Greater Miami,
Ltd. (a Florida limited partnership); and
WHEREAS, Miami Tele-Communications, Inc. and Americable of Greater -
Miami, Ltd. are the grantees of a license (herein the "License") to construct,
own and operate a cable television system in the City of tWiami, Florida
(herein the "City") pursuant to Ordinance. No. 9332 (herein the "Ordinance");
and
WHEREAS, pursuant to Section 304 of the Ordinance MCV is required to
lease six video channels to persons other than MCV; and
WHEREAS, SCC wishes to lease one of said lease channels in order to
provide local origination programming of interest to the Black population of
the City; and
WHEREAS, pursuant to the provisions of Section 40.1, MCV is required to
provide local origination programming; and
WHEREAS, MCV is desirous of having SCC provide such local origination
programming of interest to the Black population of the City as required by
the Ordinance to be provided; and
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UK obllg"Gun, Ah_' V 1'.'1'•Ilr It, lerl,l' urlr' UI "illd v1d.•ii upwl
Ulu lollo"my le►•III_, and WILIi WIS;
NOW, TIIEIAL ORL, for and in consideration of UIU rllUturll convenanls,
agreements and uncler•takings of the parties hereto, and for Other good and ,
valuable consideralion, iow agrees to make available to SCC access to one �
video channel on its cable system for peHQds of time to be designated by
MCV as required by SCC, for the purpose of providing local origination
programming, which channel is to be designated by r4CV. Such IOCaI
origination programming provided by SCC shall be primarily for- the bent.►it of
the Black populi,lien of the City. i he access to such Video channel shall be
upon the following terms, conditions, agreements and convenants, to "At:
1. Duties and Resrxonsibilities of SCC.
Durincl the term of this Lease and any extension here;; as
provided for below, SCC shall have tine follor:ing duties and rmsponsibi,ilic::.:
(a) On the channel designated- by NICV for access by SCC, SCC
will provide community programming
that
reflects
the social,
econo►l'ic and
cultural experiences and perspectives
of
the Black
population
IJi the Cily,
*.Which pr•ograrmrrling shill Iocus on the needs and inlcr•esl�, of the L'I,rcl:
community in such manner as irWOs the rcquirc'rment:; Of the (.:it,' under the
Ordinance.
(b) , P►•ior• to commencing prayr,ln►IlNg, `_ILL: •, •ill anuerlain Black.
conlrnunity needs lu►• local origirlalion pr oclrrluullincl, the a_.c er t.linrr,l'lll 01 IN'hich
shall involve' curlllllllrlily portic:ip lliun. i lle p.l►•lies ll;rrl .Iri iniri,li
survey has been accormplished !or this purpose. SCC v.ill, from limit to time,
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make such fUrther or Other forms of determinatio;i of comMunity need
as are required under the Ordinance, and will submit written reports of same
to NICV not less often than annually.
(c) SCC will, at its cost, hire its own staff with specfic respon- +
sibilit�' for development and production of local programs responsive to the ,
needs of the Black community; and Will undertake training programs for said
staff in accordance with the provisions of Section 403 of the Ordinance.
(d) SCC will develop and implement an ongoing job skills and
training program designed to train and employ members of the Black com-
munity in the research, production, transmission and decision -making aspects
of local Black community programming in a manner as to satisfy requirements
imposed upon 1ACV under the terms of the Ordinance.
(e) SCC shall cable cast a minimum of four hours of Iocal� origina-
tion programming daily, which such programming commencing within ninety'
(90) days after studio facilities are made available to SCC.
All of the above shall be carried opt b�, SCC in a professional manner
and as is necessary to meet the minimum quality standards mandated by the
requirements of the federal Communications Commission ("FCC") and the City,
Ordinance. In the event the City should notify NICV that such programming
does not satisfy requirements of the Ordinance, it shall immediately notify,
SCC thereof and SCC shall immediately make such changes as required to
satisfy such requirements.
2. Duties and Responsibilities of NICV.
WICV shall have the following responsibilities during the terra of this
Lease:
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3
(�r) 'io make available to SC( can nori-e>.clu5ive- birsi-,, studio and
mobile facilities �,uiti,ble for local or•19in11001) PI'Ogr,Jnuning, r;hich shall ter
available on a basis of equal priority with other local origination programrers
and local origination programming done directly by MCV. Said facilities shall +
be utilized on tir;;e schedule, production hours and formats established by
MCV in consultation with SCC and other local origination programmers with -a
view to the best and most effective local origination programming possible,
and will be available on a 24-hour basis.
(b) To make available to SCC at NICV's cost, on a video channel,
the specialized cable satellite network distributing Black -oriented programming,
"Black Entertainment Television" (BET); provided, however, no programming
aired from BET shall be a substitute for- SCC's required minimum four hours
daily of locally produced programming, as required un;Jer• subparagraph 1(e).
BET programming may be utilized by SCC only under- and pursuant to all
requirements of the BET affiliation agreement with MCV.
3. Title to Facilities.
It is understood and agreed that SCC's lease is a right to use one
video channel and MCV's equipment; and that it affords SCC no legal or
equitable claim to studio facilities, broadcasting equipment, electronic field
production equipment nor to electronic news gathering mobile facilities, nor
any other facilities, equipment. or properly utilized in the local origination
programming contemplated hereunder, and owned by MCV.
4. Regulatory Standards.
(a) SCC agrees to be solely responsible for program content,
exclusive of BE'l programming, and to utilize the channel tine in strict
accordance with applicable FCC and City requirements, including but not
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limited to the applicable cablecasting r•r:•yulations of the FCC as no%% in effect
or as hereafter amended, and any and all operating rules promulgated b�
MCV and any amendments thereto, provided that such rules ar•e conveyed in
writing to SCC by MCV. +
(b) SCC shall not transmit or permit to be transmitted any r
promotional announcement or information concerning any lottery, gift enter-
prise, or similar scheme, offering prizes dependent in whole or in part upon
lot or• chance, or any list or prizes drawn or awarded by means of any such
lottery, gift enterprise, or scheme whether the list contains any or all of the
prizes.
(c) In the administration of its local original programming, SCC
will afford reasonable opportunity for• the discussion of conflicting views of
issues of public importance. If and when, during an origination on SCC's
programming, an attack is made upon the honesty, character, integrity or
like personal qualities of an indentified person or group, SCC will, within a
reasonable time and in no event later than - one week after the attack, transmit
to the person or group attacked: (1) notification of the date, time, and
identification of the cablecast; (2) a script or tape (or accurate summary if
neither is available) of the attack; and (3) an offer• of a reasonable oppor-
tunity to respond. These requirements shall not be applicable to attacks on
foreign groups or public figures; personal attacks made by legally qualified
candidates, their spokesman, or those associated with them in the campaign,
on the opposing candidate, their spokesmen or associates; and attacks
�I occur►•ing on bona fide newscasts, interviews, or on -the -spot coverage; but
these exceptions shall not extend to editorials permitted by SCC. If SCC
editorally endorses or opposes a legally qualified candidate, it shall follow the
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same notification and offer procedUre of the editorial, e\cept
if the editorial occurs within 72 hour's of election dory, extraordinary me'lsures
shall be used to assure that the affected candidate or candidates have a
reasonable opportunity to prepare a response and present it in a timely
fashion. '
(d) SCC shall give MCV at least one week's prior written notice of
its full programming schedule, including both general program content and
times scheduled. h1CV shall have the right to assume continuation of the last
such schedule received, as to succeeding weeks, unless a new schedule is
received by MCV pursuant hereto.
5. Channel Allocation.
(a) It is understood and agreed that nothing contained herein or
elsewhere shall be construed as a grant to SCC of an exclusive right 1.9 any
particular channel, nor to any rights or priorities for further access to R1CV's
system, on any channel, beyond the term of this Lease. While it is contem-
plated that the channel designation assigned to SCC by MCV shall reamin the
same throughout the term of this Lease, MCV nevertheless expressly reserves
the right, in MCV's sole discretion, at any time to require SCC to use a.
different channel from that which SCC may be using at any time during the
term hereof.
(b) Should the
extent of
SCC's
programming needs exceed the
available activated capacity
of MCV's
regular
access channel facilities, as to
which [ACV may be obligated to provide public leased and access to others on
a first -come, first -served, nondiscriminatory basis, MCV may preempt or limit
the hours of SCC's programming or alternatively, at SCC's option, and subject
to MCV's overall channel capacity, require SCC to provide suitable modulating
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equipment to insert SCC's signal into a theretofore' unused channel of CAI L'
syste►n. kiodulating equipment so provided by SCC shall remain SCC's
property, but shall be under MCV's sole control during the term hereof.
(c) This Lease shall in no manner restrict or limit any rights or
MCV, including, without limitation: (a) to utilize any of the channels of its
CATV system for the transmission of any material; (b) to enter into
agreements for the use of its channels by others; or (c) to make use of the
channel utilized by SCC during the time when such channel is not being
programmed by SCC.
(d) SCC further agrees to pay N1CV any excise, sales or privilege
tax now or hereafter imposed or levied by any government or gover•nmantal
agency upon MCV on account of this lease or any payments payable here-
under. y
6. Term of this Contract.
The term of this Lease shall be for a period of five (5) years,
commencing with the date hereof, with .an option to renew upon nrutuall�'
agreed upon terms of two successive 5-year periods, provided that (i) SCC is
not in default under any of the terms, convenants, conditions and provisions
herein, and has performed to the satisfaction of the City and MCV with
regard to the quality of production and programming; and (ii) SCC gives
MCV at least sixty (60) days prior written notice of its intent to exercise the
option. MCV 'shall annually review the performance of SCC, and if it finds
that SCC is not meeting the needs of the BIC-ick Conurrunity may cancel this
Lease. Notwithstanding anything herein to the contrary, under no Circurrr-
stances shall the term of this Lease, together with any renewal periods, be
for a period longer than the term of the License granted to by the Ordinance.
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It is the intent of this Lease Thal when the License terininates, this Lease
shall also terminate.
7. Advertising RevenUe.s and Lease Pavrnents.
(a) In consideration of MCV's assistance to SCC and as payment # ,
for the channel time leased hereunder, SCC shall remit to MCV within 10 days ,
of the end of each month all revenues received by SCC for advertising
sponsorship of its local origination Black programming, exclusing BET
programming, and MCV shall, within 10 days of receipt reimburse, in cash, to
SCC 850 of all advertising revenues received. Until such time as advertising
revenues exceed $100,000 per annum, all revenues reimbursed to SCC shall be
for the credit of a separate SCC payroll account.
(b) SCC shall provide to MCV, on a monthly basis, a statement of
all advertising revenues and an updated list of all advertising subscribers of
SCC's programming including full names, addresses and telephone numbers.
(c) SCC shall include in its quarterly and annual financial state-
ments delivered to MCV, as required under, Section 7 below, a full report
showing all advertising revenues received by SCC during the applicable
accounting period.
8. [Vlainterrarrce of Books and Records.
(a) SCC shall maintain complete and accurate books and records of
its financial affairs, which books and records shall be kept in accordance with
generally accepted accounting principles consistently applied and shall be
available to MCV at SCC's office during normal business hours. SCC will,
within 90 days of the close of the fiscal year furnish rAC-V with copies of its
annual certified financial statements and within 45 days of the close of the
first three fiscal quarters provide unaudited quarterly reports of operations.
10
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C
(c) SCC shell furnish I.iC11,1 %•,ith "certified copies of its Amities of
Incorporation and By -Laws, and and arnendrnents thereto. SCC shell also
furnish to NICV, on an annual basis, the names and addresses of all directors,
officers and shareholders of SCC.
9. Prohibition Against Assignment.
This Lease -may not be transfered, assigned or sublet, in any
manner, by SCC, whether by transfer of assets or transfer of a majority or
the issued and outstanding shares of stock of SCC without the prior written
consent of MCV. Further, the parties ackno%,.-ledge that MCV is relying on
the fact that George Greene will be President and Chairman of the Board of
SCC and will control the employment of the Chief Operating Officer. Any
transfer of stock by George Greene to other- than those members of his
immediate j family (spouse, mother, father, daughter , son, brother-), resulting
in George Greene or his immediate family owning and controlling less than
fifty-one (51) percent of the issued and outstanding shares of SCC without
prior written
consent of MCV, will
be
deemed a
"transfer" prohibited by this
section, and
shall constitute cause
for
immediate
cessation of any rights under
this Lease.
10. Liability for Damages' Indemnification; Insurance.
(a) SCC shall save MCV harmless from arty and all liability, loss,
cost, damage, attorneys' fees, costs and expense or- other injury or claim of
injury (includi'h'g reasonable expenses of defending claims or litigation) arising
as a result of any claims which may be made by any governmental body or'
agency or, any person or persons, including, but nut limited to SCC, SCC's
agents and employees, in connection with, but not limited by any of the
following:
M
'"t
0
112
l') lailure Of SCC to con -Ply k•;ilh erny of the of
this
(t) any and all cairns
for libel, slander,
bodily injury and
property damagL arising from or in
connection with the
production and
transmission of program material for use
of the channel by
SCC;
t
(3) any and all claims
for infringerncnt
of
common law or
statutory copyright; unauthorized use
of any trademark,
trade name, or
service mark; invasion of privacy; breach of contractual
or
other obligations
or othem-Jse arising from the production and transmission
of
program material
or use of the channel by SCC;
(4) any and all losses
or other injury
or
claitii of such,
regardless of whether the proximate cause of which is action taken against
MCV by the FCC dr, :any other federal, state or local governmental body or
agency arising out of or in connection with the conduct of SCC in connection
with its use of the channel;
(5) any other claim in law or equity (without limitation by the
above) arising directly or indirectly from the use of the channel by SCC.
(b) SCC, at SCC's sole expense, shall obtain and keep in force,
throughout the term hereof, with a reputable insurance comptrny approved by
MCV and
authorized to
do business in the State of
Florida, a policy of
insurance,
insuring against
all of the perils, hazards, and negligent or willful
conduct refe-rj,ed to in
Paragraph 9(a)(2) above in
which the limits of
coverage
for all perils
mentioned shall not be less
than $1,000,000 per
occur•ance
and $500,000 per
person per occurance. In
addition to SCC, such
insurance
policy or form
of' indemnity shall also name
NICV as an additional
insured.
SCC shall also
deliver to IACV a certificate or
other evidence of the
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maintenance of the afore-�aicl insurance coveracle. Said policy sh=Jll contain a
clause provided that said 'nsurance shall not be cancelled eXCept upon the
delivery of' thirty (30) days prior, written notice to N1CV.
(c) While it is MCV's intent to operate its CATV system within +
generally acceptable technical standards, and on a 24-Dour basis, it is '
expressly understood that MCV is not responsible to SCC for signal quality
nor for outages of whatever duration and howsoever caused; but an outage on
the system affecting more than 509, of the subscribers for a period of 24
consecutive hours or more during any such period when SCC's programming
was scheduled, shall be cause for reimbur•s;nent to SCC on a pro rata basis,
of the fee paid to NICV pursuant to Paragraph G hereof.
(d) Pv1CV'sr.performance hereunder shall be excused by any pre-
vention, delay or stoppage due to strikes, lockouts, picketing, boycotts,
inability to obtain labor- or materials or reasonable substitutes therefor,
governmental restrictions, regulations or controls, enemy or hostile govern-
mental action, civil commotion, fire, acts 'of God, flood, earthquake, tornado,
hurricane, unreasonable weather, transportation lacks, energy shortages
(subject to the degree referred to in the preceding paragraph hereof) or
other causes or occurences beyond fACV's control.
11. Default and Termination
(a). In the event of any breach hereof by SCC which shall not
have been cured within five (5) days after receiving notice specifying such
breach (or if such breach is not for, the payment of money and SCC shall not
within ten (10) drys after receiving notice of such breach, have commenced
and be diligently proceeding to cure said breach); then MCV lawfully may
immediately, or at any time thereafter, terminate this Lease.
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{b) If ibis Lease is terminirted under• any of its provisions, all
rights of SCC sh,rll he Iorleiled, and SCC shall have no claims against (,.1CV
for• loss or other• injury resulting fr-OM suclr termination.
other:
(c) MCV or SCC may terminate this Lease without liability to the
IF
(1) if termination is required by a final Order• of any Court
or governmental body or agency having jurisdiction; or•
(2) If NICV becomes precluded from serving subscribers by
reason of a terminated or expired franchise, or any other law, rules,
regulation, authorization or document, inclrlding contracts, necessary for the
operation of the CATV system.
(d) Notwithstanding anything herein to the contr•ar•y, the pro-
f: ' ,
visions of Paragraph 9 herein shall survive the ter•min Zion of this Lease, and
remain in full force and effect until the end of the period of potential liability
specified by any and all applicable statutes of limitation.
12. No Waiver.
The failure of MCV in one or more instances to insist upon strict
performance or observance of one or more of the convenants or conditions of
this Lease, or to exercise any remedy, privilege or option herein conferred,
shall not operate or, be construed as a relinquishment or waiver of that or -
any
other
covenant,
condition or
obligation,
or of
the
right to
enforce the
same
or to
exercise
such privilege
or remedy,
but
the
same shall
be deemed
to continue in full force and effect.
13. Notices.
Whenever notice is required to be given hereunder, it is agreed
that written notice mailed or, delivered to SCC or• MCV, at the addresses
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listed bclo�N , shell con,titue sul f icienl notice. Until otherwise notil ied rr
writing of a change of address, the lollu��ing E-we the addreves of the parties
for the purposes of notice:
As to MCV: r
c/o AMERICAT31-E ASSOCIATES OF GREATER MIAMI
Attention: Mr. Charles C. Hermanowski
20800 S. W. 167 Avenue '
P . 0. Box 859
Miami, FL 33187
with copy to:
Mr. Paul Alden
MIAMI TELE-COMMUNICATIONS, INC.
5455 S. Valentia Way
Englewood,- ;CO 80110
with additional copies to:
John Draper, Esquire
TELECOMMUNICATIONS, INC.
Call Box 22595, Welishire Station,
Denver, CO 80222
Kenneth M. Myers, Esquire
One Southeast Third Avenue
301h Floor
Miami, FL 33131
As to SGC :
SABLE CABLE COMMUNICATIONS, INC.
c/o Mr. George N. Greene
7630 Biscayne Boulevard
Miami, FL 33138
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AG1a
r
IPJ 1':I i NE.SS 1VIILiL _)I the p,irlies lit -we hereuritr) bQt their hrinds thi'.,
day of July, 1` 6i]
fti'IIAMI CABLEVISION
By• L
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SABLE CABLE CUM1,4t1NICATIONS, INC.
BY:
George Greene, President
ATTEST:
By:
Secretary
ti
.
�JIAMI TADE CHAMBER OF COMMERCE
6255 NORTHWEST 7th AVENUE
MIAM1, FLORIDA 33150
TELEPHONE: (305) 751-sli4s "7HEflHANIBER II,ORKS IOR '1,OU'
757-:34.5)9
July 20, 1982
Howard V. Gary, City Manager
Commissioner J. L. Plummer, Jr.
Commissioner Joe Carollo
Commissioner Miller J. Dawkins
Commissioner Demetrio Perez
City of Miami
3500 Pan American Drive
Miami, Florida 33133
Re: Cable Television
Dear Mr. Gary and Commissioners:
The Miami -Dade Chamber of Commerce would like to go on record with
the following statement:
The City of Miami's Minority Procurement Ordinance
should be made a part of the cable television
contract. All of the Black participation teams
and scopaof work that was originally a part of
the bid proposals for the two (2) joint venture
firms of Americable and TCI should be kept intact
and all prior agreements should be made to stand.
This cable contract can be the beginning foundation for economic deve-
lopment in the Black community and Black participation is important.
Sincerely yours,
Ronald E. Frazier
President
REF: as
ENTERTA/NAIENT by
*AMERI-CABLE *
your Satellite Connection
20800 S VV 167th Ave, Miami. FlOndd 33137
Marhrig Address
P O Bu= 859, Mimi, Florida 33197
July 20, 1982
Phone.305,255-3770
The Honorable Howard V. Gary
City Manager
City of Miami
3500 Pan American Drive
Miami, FL 33133
Re: CATV Ordinance No. 9332 Section 1103 Para. "D"
Dear Mr. Gary:
As promised in my July 13, 1982 letter, please find enclosed
the minority employment data as of June 30, 1982 from our
Turnkey sub contractor's.
If you or staff have any questions regarding this information
kindly contact myself or William Wertz at the above.
Sincerely,
�,iEtz Z X-0 xl3f�����J�c
Charles C. Hermanowski
CCH/am
enclosure
cc: Mr. -Walter Pierce - Asst. to the City Mgr.
Mr. Clark Merrill":: Inter Governmental Affairs
Mr. Wm. Wertz
Mr. Paul Alden
A,
MIAMI CABLEVISION
(Sub -Contractors)
Minority Employment Data as of June 30, 1982
Total Employees Number % to Total
White 4 33
Black 4 33
Hispanic 3 25
Female 1 9
Total 12 100
Management Staff
White _; 1 34
Black 1 33
Hispanic 1 33
Total 3 100
Total Minority Employment 8 67
Total Minority Management 2 66
NAME
John Dusky
Lazaro Albo
Gregg Martinez
Jorge Ortiz
Rick Sullivan
Gregg Holbrook
Ernest Allen
Bill Griffen
Joe I1ughe s
Mike Wallace
Arthur Nelson
Betty Kusky
TOTALS
MIAMI CABLEVISION
(Sub -Contractors)
BYERS COMMUNICATIONS/URBAN COMMUNICATIONS
Employment Data as of June 30, 1982
POSITION MANAGEMENT WRITE BLACK HISPANIC FE,tiIALE OTHER
Project Manager X X
Permitting and Public Relations X x
Chief Technician X
x
Inspbction Foreman
Activation Technician X
Warehouse Foreman X
Lineman X
Supervisor X
X
Lineman X
Cable Foreman X
X
Splicer
Secretary
3. 4 4
3
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