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1 <br />Item No: 08B <br />Meeting Date: May 26, 2020 <br />Type of Business: Council Business <br />City Administrator Review: <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Nyle Zikmund, City Administrator <br />Item Title/Subject: Resolution 9276 In Support of Protecting the Community <br />Television Act <br />Introduction: <br />The City has received a request from CTV North Suburbs requesting our support of the <br />Community Television Act. <br />Discussion: <br />The purpose of this act is to eliminate the newly adopted FCC language that ruled a <br />franchise fee is both a monetary and non -monetary fee and permits cable companies to <br />unilaterally assign a value to the non -monetary in-kind contributions and then subtract <br />that amount from the franchise fees the cable operator pays the local community. <br />Signing this resolution will support the change of the language back to the original <br />Cable Act of 1984 version. <br />Franchise fees are directly paid to each city. This language does not affect PEG fees. <br />Attached is the City of Mounds View Franchise Fee report. Note that Q1 is higher this <br />year than last. CTV has indicated that they have less subscribers than last year, so the <br />increase in revenue is due to higher costs to the customer. <br />Strategic Plan Strategy/Goal: This resolution is consistent with the Vision Statement, <br />"A progressive City that is welcoming, and a desirable destination to all ages & <br />cultures, who seek progress through partnerships, and a place where residents can <br />work, live, and play safely and show pride in the community" <br />Financial Impact: Changes to the act will have a significant negative consequences to <br />revenue generated from cable operations as it allows provides to value in-kind services <br />such as the fiber network. <br />