10-28-2015 City Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 28, 2015 Comcast franchise relative to franchise fees, Public Education Government (PEG) fees, and the area served. Bradley expanded on the significant issues that have been considered relative to the CenturyLink franchise. One was CenturyLink's assertion that Federal Law preempts State Statute requiring a five-year build out of the cable system. Bradley reported that while CenturyLink's goal is for a five-year build out, they cannot make that guarantee as the building out will be somewhat based on market success. Bradley also noted that CenturyLink has a significant investment targeted to areas in each member city that are below median income levels. Bradley reported that CenturyLink's initial minimum building -out commitment is 15% of each member city over two years. They must make a best effort to complete this initial deployment in a shorter period of time. The build -out must be equitable to households in each member city including a significant number of households below the medium income of each member city. Bradley reported that beginning January 1, 2016, CenturyLink must meet with member cities to review the number of households capable of being served and actually served. CenturyLink must show compliance with anti - redlining requirements providing maps and documentation showing exactly where service is being provided. Bradley then commented on CenturyLink's additional build -out commitment based on market success. He noted that the commitment will increase if CenturyLink's penetration rate is at least 27.5% in the areas that it is offering service. Additional build -out commitments will continue until all households are served. Bradley reported that economic redlining or "cherry picking" is prohibited by the Federal Cable Act. Bradley reported that under the proposed franchise agreement CenturyLink will be subject to a $500 per day penalty/liquidated damage for violating build -out and economic redlining provisions. With regard to a level playing field between CenturyLink and Comcast, Bradley reported that CenturyLink will be required to pay a franchise fee of 5% of its gross revenues, which is identical to the Comcast Franchise/Settlement Agreement. The franchise area is the entire city, which is also comparable to the Comcast Franchise. Bradley then reviewed PED access requirements including number of access channels, format of access channels, electronic programming guide, and channel placement, comparing the CenturyLink requirements with those of Comcast. CenturyLink will allow the City to air public service 5