12-14-2015 Council Packet - Laserfiche WebLink

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Executive Summary This Report addresses the application for a cable television franchise to Qwest Broadband Services, Inc., doing business as CenturyLink ("CenturyLink"), a wholly owned subsidiary of CenturyLink, Inc. and its subsidiaries. CenturyLink filed a franchise application with the North Metro Telecommunications Commission (the "NMTC") on February 12, 2015, requesting a franchise to provide cable services with each of the member cities of the NMTC. The NMTC held a public hearing on February 18, 2015. The public hearing remained open until February 27, 2015, to allow the public additional time to comment on the application, at which time the public hearing closed. Following the close of the public hearing, the NMTC Executive Director commenced review of the application. Mike Bradley of Bradley Hagen & Gullikson, LLC, long-time outside counsel to the NMTC on cable franchising matters, assisted in the review and drafting of this Report. Upon review of the public record on CenturyLink's application materials, it is the NMTC Executive Director's recommendation that staff now be directed to negotiate a cable franchise with CenturyLink, consistent with this Report. The Executive Director anticipates that the resulting competition between CenturyLink and Comcast will benefit cable subscribers through better service, lower rates, and improved programming choices. It is recommended that any CenturyLink cable franchise contain commitments that taken as a whole are comparable (but not necessarily identical) to those in the existing cable franchise. This approach should permit the NMTC to promote its interest in developing competition for cable service, while preventing CenturyLink or the incumbent cable franchise holder, Comcast, from obtaining an unfair competitive advantage. A cable franchise is a valuable privilege to use the public rights-of-way to provide residents cable service. Any franchise, while recognizing that CenturyLink would be the second wire -line franchised cable operator, must adequately address the following issues: Adequate protections to the public to prevent economic redlining or "cherry picking." Fair and Reasonable build -out requirements with the goal of CenturyLink providing competitive cable services throughout the entire NMTC within a reasonable time and in an equitable manner. Provisions consistent with Level Playing Field requirements under applicable law addressing: o Area to be served o Public, Educational, and Governmental ("PEG") Television o Payment of a Franchise Fee Indemnification from any litigation resulting from the grant of a franchise. If the NMTC Executive Director's recommendation is adopted by the NMTC, NMTC staff should be directed to commence negotiating a cable franchise with CenturyLink immediately. Following negotiations, the NMTC will make a recommendation to its member cities for final action. If a franchise ordinance is recommended, the member cities should schedule a public hearing on the proposed cable franchise ordinance. The NMTC member cities