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HomeMy WebLinkAbout2007-185 Council Resolution• CITY OF LINO LAKES, MINNESOTA • RESOLUTION NO. 07-185 REGARDING THE APPROVAL OF A MODEL FRANCHISE ORDINANCE THAT CAN BE UTILIZED BY COMPETITIVE CABLE FRANCHISE APPLICANTS AND THE REAFFIRMATION OF THE NORTH METRO TELECOMMUNICATIONS COMMISSION'S AUTHORITY TO RECEIVE AND REVIEW ADDITIONAL CABLE FRANCHISE APPLICATIONS ON BEHALF OF THE CITY OF LINO LAKES WHEREAS, commencing in 1966, the Federal Communications Commission and later Congress codified a dual federal-local regulatory process for the regulation of cable services and cable systems that distinguished between matters of national and local concern; and WHEREAS, since 1905, local governments in Minnesota have had the authority to franchise companies seeking to use public rights -of -way for private profit. In 1973, this authority over cable communications systems was specifically codified in Minnesota Statutes Chapter 238; and WHEREAS, the City of Lino Lakes, Minnesota (the "City ") is a local cable franchising authority for purposes of federal and state law; and WHEREAS, under applicable law, the City may, without limiting any other powers it may possess, franchise cable communications systems and open video systems, regardless of the technologies or facilities utilized to provide multichannel video programming services; and WHEREAS, in light of advances in technology and the ability to offer multiple services over a single network, local exchange carriers, such as Qwest, and other entities are beginning to offer cable services across the country; and WHEREAS, the City, along with the municipalities of Centerville, Circle Pines, Ham Lake, Lexington, Lino Lakes, and Spring Lake Park, Minnesota, has established the North Metro Telecommunications Commission (the "Commission ") pursuant to a Joint and Cooperative Agreement; and WHEREAS, the member cities of the Commission, including the City, and have delegated to the Commission the authority, among other things, to monitor cable communications, to receive and review applications for cable service franchises and to make recommendations to the member cities concerning cable communications system franchise applications; and WHEREAS, the City wishes to promote competition in the delivery of cable services and to encourage the deployment of state -of -the -art broadband networks; and • WHEREAS, the City believes true and effective competition between cable service • providers will increase the availability and quality of cable services, spur the development of new technologies, improve customer service, discipline rates and generally benefit consumers; and WHEREAS, to promote competition and to streamline the competitive franchising process, the Commission has developed and adopted "Policies and Procedures Governing Application, Review and Recommendations Regarding Grant of Competitive Cable Franchises" (the "Competitive Franchising Policies and Procedures ") to establish an efficient and effective procedure for receiving and analyzing applications for additional cable service franchises and for making recommendations to the City and the other member cities, as appropriate; and WHEREAS, in accordance with the Competitive Franchising Policies and Procedures, the Commission has prepared model Additional Franchise Agreement which can be executed by competitive franchise applicants and adopted by the City as a non - exclusive cable franchise (the "Model Additional Franchise Agreement "). The Model Additional Franchise Agreement is attached to this Resolution as Exhibit A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota as follows: 1. The Model Additional Franchise Agreement attached hereto as Exhibit A is approved in its entirety as to form and substance. The City, however, reserves all of its rights and remedies under applicable laws, regulations and decisions with respect to the consideration of cable franchise applications and the award or denial of cable service franchises. 2. The Commission and its officers, directors and staff are authorized to take such actions as may be necessary or desirable to implement and administer the Competitive Franchising Policies and Procedures, including (but not limited to) receiving, reviewing and making recommendations concerning applications for additional cable service franchises. 3. This Resolution shall be effective immediately upon its adoption. Passed and adopted this 2 2" day of (?vi� , 2007. CITY OF LINO LAKES, MINNESOTA By: Its: Council Member Reinert moved the adoption of the foregoing Resolution, and Council Member Carlson duly seconded that motion. Upon a vote being taken thereon the following members of the Council voted in favor thereof: Reinert, Carlson, O'Donnell, Stoltz, Bergeson and the following voted against the same: none Whereupon said Resolution was declared duly passed and adopted. 3 I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council duly called and held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript there from insofar as the same relates to a resolution of the Council approving an model franchise ordinance and reaffirming the North Metro Telecommunications Commission's authority to receive and review cable franchise applications and to make recommendations concerning the same. WITNESS my hand as such City official and the official seal of the City this — day of , 2007. City Clerk 41) (SEAL) • • • • 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 I -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 I -NET, whether that is an additional non - duplicative I -NET, or the equivalent cost of an I -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.