Agenda Packets - 2006/06/12 - Laserfiche WebLink

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Mounds View City Council May 22, 2006 Regular Meeting Page 20 Resolution Approving Change Orders No. 20 through 26 for the City Hall Rehabilitation Project. 1 2 Ayes – 4 Nays – 1 (Stigney) Motion carried. 3 4 J. Resolution 6829 Resolution in Support of Local Cable and Video Provider 5 Franchising 6 7 City Administrator Ulrich introduced Coralee Wilson, Chief Administrator for the North 8 Suburban Cable Commission (NSCC). 9 10 Ms. Wilson reported there have been numerous attempts to revise the telecommunication laws at 11 the federal level in light of new technologies and business models. She stated all want more 12 competition to the existing cable company to keep prices low and enhance customer service. Ms. 13 Wilson noted that as companies come in, they provide advanced telecommunication services to 14 serve residents and businesses and a good economic tool. Unfortunately, large national 15 companies have decided the rules are not appropriate for them and they don’t want to abide by 16 the rules and come to local governments to get franchises to provide video services because it is 17 too time consuming. However, in the last two years if they had spent as much time and money 18 on complying with the process as to get out of it, they would have most of the franchises at this 19 point. 20 21 Ms. Wilson advised there are now two legislative bills, one of which got to the floor of the House 22 to allow companies to come in with very little ability by the community to manage or control the 23 manner in which they do that. She reported that HR 5252 was introduced in the House in March, 24 has been through both subcommittee and committee votes, and if voted on today, it would pass. 25 Also, Senator Stevens introduced a bill and it will likely go to markup after June 5, 2006. 26 27 Ms. Wilson stated she had handed out a summary on bill S 2686, which is worse than the House 28 bill and creates a national franchise through the FCC. The Senate bill creates a local franchise 29 through a form created by the FCC. In both bills there is 30 days to approve a franchise, which 30 does not provide the City enough time to study whether they have sufficient financial backing. 31 Ms. Wilson noted the current franchise law gives the City enough time to assure the company is 32 capable of managing a cable system. In addition, both bills limit public access to 1% of gross 33 revenue, which will limit them to about $218,000. Their current budget is over $1 million so 34 with a reduction to $218,000 there would be severe cut backs in the ability for CTV to serve the 35 community. She stated she has heard from legislators that the City should give up some of their 36 5% franchise fee to support public access but that is a rental fee to use the public right-of-way. 37 She stated her opinion that the franchise company should compensate the City because they are 38 using public property (rights-of-way). Ms. Wilson explained the PEG fee is a programming fee 39 and should pay for locally produced programming as well. 40 41 Ms. Wilson advised that with these bills, the City would lose control of its public rights-of-way. 42 The bill says the City will retain that control but if the national franchise does not like the City’s 43 rules and regulations, they can appeal to the FCC, not a court, requiring the City to send their 44 attorney to Washington, D.C. or hire an attorney from there. Under the Senate bill, if the City 45