10/22/2007 Council Packet - Laserfiche WebLink

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AGENDA ITEM 3B STAFF ORIGINATOR: Daniel Tesch, Director of Administration MEETING DATE: 22 October 2007 TOPIC: Resolution 07 -185 VOTE REQUIRED: 3/5 BACKGROUND Telephone companies want to provide video services. However, they have stated that they believe the current franchising process takes too long and that cities serve as barriers to entry into the market. As such they are lobbying state and federal government hard to change laws to benefit them in the video service marketplace. The FCC recently approved a "Report and Order" that only allows local franchising authorities 90 days to negotiate a franchise for a phone company to provide video service. The new guideline became effective on August 6, 2007. The North Metro Telecommunications Commission (NMTC) approved "Policies and Procedures" for accepting applications for competitive franchises in December 2006. The policies and procedures take into account Minnesota Statute 238 and the new regulatory guidelines indicated in the FCC's "Report and Order.° The Policies and Procedures simplify and streamline the application process, challenging the argument that cities serve as a barrier to entry in the market. With an Additional Franchise Template for video service competitors, the franchise application, negotiation, and approval process would be greatly hastened. The 'Model Additional Franchise Template' is based on the existing franchise with Comcast. It maintains a °level playing field' and considers community needs and interests, but it also addresses technological changes and the new regulatory framework. When drafting the document, the NMTC's legal counsel carefully considered Minnesota Statute 238, the recent FCC 'Report and Order and the existing franchise. The most significant changes include the sections regarding PEG and 1 -NET support. The new document was written so that competitive providers will provide equivalent support for PEG on a per - subscriber, pro-rata basis. New providers would also have to provide an equivalent investment in an 1 -NET, whether that is an additional non - duplicative 1 -NET, or the equivalent cost of an 1-NET paid on a per- subscriber, pro-rata basis. The additional franchise also indicates various fees that will NOT be deducted from franchise fees. This change was necessitated by Language in the FCC's "Report and Order° that could be interpreted to allow a franchise holder to offset certain costs and fees against franchise fee payments. The NMTC reviewed and approved the 'Model Additional Franchise Template" at their August 15, 2007 meeting. The Operations Committee has also reviewed the document Both groups recommend that the individual cities pass a resolution approving the template franchise. RECOMMENDATION 1. Approve Resolution 07 -185 Approving a Model Competitive Franchise Agreement 2. Deny Resolution 07 -185 ATTACHMENTS Number One. -58-