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Mounds View City Council May 22, 2006 Regular Meeting Page 21 loses the case and the FCC thinks the City has abused its authority, the FCC can order the City to 1 pay the legal fees of the license holder and costs associated with the appeal. This will inhibit the 2 ability for the City to protect and enforce its rights-of-way. 3 4 Ms. Wilson stated these bills will allow national franchise companies to come into the City and 5 take over the area. They also do not have to serve all of Mounds View and can select the most 6 lucrative areas to provide service. Currently, the cable company is required to serve the entire 7 community within a reasonable amount of time, considering the density threshold. 8 9 Ms. Wilson stated that Representative Ramstad said he is not interested in inserting the 10 requirement to serve the entire community. She explained that under the Senate bill, once a 11 company applies for a national franchise to serve Mounds View, Comcast can get out of its 12 existing franchise and there is nothing to prohibit them from increasing their prices where there is 13 no competition and vice versa. 14 15 Ms. Wilson stated another concern is that due to the short period of time to approve the 16 application at the FCC or local level, the bill allows Qwest and Verizon to get into the business. 17 She noted there can be unscrupulous people making application with no intention of building the 18 system or building it out completely, so it creates an opportunity for speculation using the City’s 19 public rights-of-way as the lure. 20 21 Ms. Wilson advised the Senate bill includes a definition of gross revenues, which will drastically 22 cut back what the City is receiving. However, the gross revenue definition contained in the 23 House bill is not as bad as the Senate bill. 24 25 Ms. Wilson stated the resolution before the Council addresses both pieces of legislation. She 26 encouraged the Council to contact members of the Minnesota Delegation because the only way to 27 slow down the bills or stop them is if all stand and speak together. Ms. Wilson stated the 28 information she provided has been prepared by a local coalition of government associations and 29 based on the Senate bill, which is similar to the House bill. 30 31 Councilmember Stigney asked how the Minnesota Senators stand on this issue. Ms. Wilson 32 stated they have been talking with them but not been able to get a sense in how they will vote. 33 She stated they will be meeting with Senator Coleman in the next few weeks and Senator 34 Ramstad has not yet been brief on this bill. Ms. Wilson stated the League of Minnesota Cities is 35 working on this issue and the City needs to do the same. 36 37 Mayor Marty asked how long she has known about the bills. Ms. Wilson stated the House bill 38 came up in mid-March and the first draft of the House bill was out in September of last year. 39 40 Councilmember Flaherty asked who introduced the bill. Ms. Wilson stated it was Joe Barton, the 41 Senator from Texas who is the Chair of the House Conference Committee. 42 43 Ms. Wilson explained they have been working with staff from the inside to try and get the needed 44 language. In mid-March they saw the House bill and had hoped the Senate bill would be better, 45