HomeMy WebLinkAboutResolution 8267 RESOLUTION NO. 8267
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
PRELIMINARY ASSESSMENT THAT THE COMCAST
OF MINNESOTA, INC.CABLE FRANCHISE SHOULD NOT BE RENEWED
WHEREAS, The City of Mounds View, Minnesota (the "City"), is a Member City of
The North Suburban Cable Commission, d/b/a The North Suburban Communications
Commission(the "Commission"), a Joint Powers Commission organized pursuant to Minn.
Stat. § 471.59, as amended, and includes the municipalities of Arden Hills, Falcon Heights,
Lauderdale, Little Canada, Mounds View,New Brighton,North Oaks, Roseville, St. Anthony,
and Shoreview, Minnesota(hereinafter, collectively the "Member Cities"); and
WHEREAS, a Joint Powers Commission organized pursuant to Minn. Stat. § 471.59 has
the statutory authority to "jointly or cooperatively exercise any power common to the contracting
parties i.e., the Member Cities;" and
WHEREAS, the Commission was established by the Amended North Suburban Cable
Commission Joint and Cooperative Agreement for the Administration of a Cable
Communications System, dated June 1990 (the "Joint Powers Agreement"), to monitor
Comcast's performance, activities and operations under the Franchises and to coordinate,
administer and enforce the Member Cities' Franchises, among other things; and
WHEREAS, The North Suburban Communications Commission acts on behalf of its
Member Cities, including the City,to monitor the operation and activities of cable
communications and to provide coordination of administration and enforcement of the
franchises of the Member Cities; and
WHEREAS,the City enacted an ordinance and entered into an agreement authorizing
MediaOne North Central Communications Corp. to provide cable service (the "Franchise"); and
WHEREAS, as a result of several transfers of the Franchise, Comcast of Minnesota, Inc.,
("Comcast") currently holds the Franchise in the City; and
WHEREAS, Section 626(a)(1) of the Cable Communications Policy Act of 1984, as
amended (the "Cable Act"), 47 U.S.C. § 546(a)(1), provides that if a written renewal request is
submitted by a cable operator during the 6-month period which begins with the 36th month
before franchise expiration and ends with the 30th month prior to franchise expiration, a
franchising authority shall, within six months of the request, commence formal proceedings to
identify the future cable-related community needs and interests and to review the performance of
the cable operator under its franchise during the then current franchise term; and
WHEREAS, by letters dated October 11, 2010, and November 23, 2010, from Comcast
to each of the Member Cities, including the City, Comcast invoked the formal renewal
procedures set forth in Section 626 of the Cable Act, 47 U.S.C. § 546; and
WHEREAS, the City and the other Member Cities informed the Commission, by
resolution, that they want the Commission and/or its designee(s) to commence, manage and
conduct the formal renewal process specified in Section 626(a)-(g) of the Cable Act, 47 U.S.C. §
546(a)-(g), on their behalf; and
WHEREAS, the City has affirmed, by resolution, the Commission's preexisting
authority under the Joint Powers Agreement to take any and all steps required or desired to
comply with the Franchise renewal and related requirements of the Cable Act, Minnesota law
and the Franchises; and
WHEREAS, the Joint Powers Agreement empowers the Commission and/or its
designee(s) to conduct the Section 626 formal franchise renewal process on behalf of the City
and to take such other steps and actions as are needed or required to carry out the formal
franchise renewal process; and
WHEREAS, the Commission adopted Resolution No. 2011-02 commencing formal
franchise renewal proceedings under Section 626(a) of the Cable Act, 47 U.S.C. § 546(a), and
authorizing the Commission or its designee(s) to take certain actions to conduct those Section
626(a)proceedings; and
WHEREAS, the Commission performed a detailed needs assessment of the Member
Cities' and their communities' present and future cable-related needs and interests and has
evaluated and continues to evaluate Comcast's past performance under the Franchises and
applicable laws and regulations, all as required by Section 626(a) of the Cable Act, 47 U.S.C. §
546(a); and
WHEREAS, the Commission's needs ascertainment and past performance review
produced the following reports: The Buske Group's "Community Needs Ascertainment —North
Suburban Communications Commission (Arden Hills, Falcon Heights, Lauderdale, Little
Canada, Mounds View, New Brighton, North Oaks, Roseville, St. Anthony and Shoreview,
Minnesota)" (July 15, 2013) (the "Needs Assessment Report"); Group W Communications,
LLC's, telephone survey and report titled "North Suburban Communications Commission Cable
Subscriber Survey (September 2011)" (the "Telephone Survey Report"); CBG Communications,
Inc.'s, "Final Report - Evaluation of Comcast's Subscriber System, Evaluation of the Existing
Institutional Network and Evaluation of PEG Access Signal Transport and Distribution for the
North Suburban Communications Commission" (July 2013) (the "Technical Review Report');
Front Range Consulting, Inc.'s, "Financial Analysis of Comcast Corporation 2012 SEC Form
10K" (May 2013) (the "Comcast Financial Report'); and Commission staff's "Report on Cable-
Related Needs and Interests and the Past Performance of Comcast of Minnesota, Inc.," (July 22,
2013) (the "Staff Report'); and
WHEREAS, based on its needs ascertainment, past performance review, best industry
practices, national trends in franchising and technology, and its own experience, Commission
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staff prepared a "Request for Renewal Proposal for Cable Television Franchise" ("RFRP") that
summarizes the Member Cities' and their communities' present and future cable-related needs
and interests, establishes requirements for facilities, equipment and channel capacity on
Comcast's cable system and includes model provisions for satisfying those requirements and
cable-related needs and interests; and
WHEREAS, pursuant to Resolution No. 2013-04, the Commission authorized its
Executive Committee, Franchise Renewal Committee, Commission staff and/or Commission
designee(s) to take all steps and actions necessary to implement, conduct and engage in the entire
formal franchise renewal process set forth in Section 626(a)-(g) of the Cable Act, 47 U.S.C. §
546(a)-(g), and to comply with any and all related federal, state and local laws, regulations,
ordinances, orders, decisions and agreements; and
WHEREAS, the Commission's delegation of authority to the Franchise Renewal
Committee includes, but is not limited to, the issuance of a staff report and RFRP and the
establishment of appropriate deadlines for questions and Comcast's RFRP response; and
WHEREAS, in accordance with the authority delegated by the Commission, the
Franchise Renewal Committee, by resolution, terminated the Section 626(a) proceedings
required by the Cable Act on July 26, 2013, issued the Staff Report and RFRP to Comcast,
effective July 29, 2013, and instructed Commission staff to deliver the Staff Report and RFRP to
Comcast no later than July 30, 2013; and
WHEREAS, the Staff Report and RFRP was delivered to Comcast on July 29, 2013; and
WHEREAS, the Commission ratified the issuance of the Staff Report and RFRP by the
Franchise Renewal Committee at its August 2013 meeting; and
WHEREAS, the Commission and Comcast engaged in informal renewal negotiations
pursuant to 47 U.S.C. § 546(h) but are currently unable to arrive at mutually acceptable terms,
although informal discussions are ongoing; and
WHEREAS, the Commission established November 22, 2013, as a deadline for
Comcast's response to the Staff Report and RFRP; and
WHEREAS, the Commission and Comcast agreed to extend certain deadlines including
the deadline for Comcast to respond to the Staff Report and RFRP and the deadline set forth in
47 U.S.C. 546(c) for the Commission and the Member Cities to accept or preliminarily deny the
Comcast Proposal; and
WHEREAS, on or about December 20, 2013, Comcast submitted to the Commission its
Formal Proposal in response to the Staff Report and RFRP ("Proposal"); and
WHEREAS, the Commission published a notice notifying the public that Comcast's
Proposal has been received and was placed on file for public inspection in the Commission's
office, and that written public comments may be submitted to the Commission; and
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WHEREAS, the Commission held a public hearing on April 17, 2014, and May 1, 2014,
on the Comcast Proposal; and
WHEREAS, Comcast's proposal was analyzed by the Commission's staff, The Buske
Group, CBG Communications, Inc., and Front Range Consulting, Inc., each of whom prepared a
separate Executive Summary of Comcast's Proposal, which are all attached hereto and
incorporated herewith as Exhibit A to Attachment 1 (collectively the "Executive Summary
Reports"); and
WHEREAS, the Executive Summary Reports identify with particularity whether
Comcast's Proposal is acceptable or unacceptable as it relates to the Commission's Staff Report
and RFRP; and
WHEREAS, the Commission carefully reviewed Comcast's Proposal and determined a
number of areas where the Proposal fails to meet the future cable-related community needs and
interests taking into account the cost of meeting such needs and interests; and
WHEREAS, should Comcast request the commencement of an administrative hearing
pursuant to 47 U.S.C. § 546(c), the Commission has prescribed Rules for the Conduct of an
Administrative Hearing, attached hereto as Exhibit B to Attachment 1, which rules comply with
all procedural obligations set forth in 47 U.S.C. § 546(c); and
WHEREAS, the Commission carefully considered all public comment including that
contained within the Staff Report and RFRP, the Proposal and the attached analysis; and
WHEREAS, the Commission, on May 15, 2014, adopted a resolution, attached hereto as
Attachment 1, recommending to the Member Cities that the Member Cities issue a preliminary
assessment that the Comcast Franchises should not be renewed.
NOW, THEREFORE,BE IT RESOLVED BY THE CITY OF MOUNDS VIEW
THAT:
1. Each of the above recitals is hereby incorporated as a finding of fact by the City.
2. Attachment 1 and its Exhibits A and B are hereby incorporated by reference as if fully set
forth in the body of this Resolution.
3. The City makes a preliminary assessment that the Comcast Franchises should not be
renewed.
4. The City preliminarily finds that Comcast's Proposal fails to meet the Commission and
the City's future cable-related community needs and interests taking into account the cost
of meeting such needs and interests.
5. The basis for the City's preliminary assessment is set forth in Attachment 1, Exhibit A.
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6. At any administrative hearing requested by Comcast, the Rules for the Conduct of an
Administrative Hearing attached hereto as Attachment 1„ Exhibit B will ensure that
Comcast is afforded a fair opportunity for full participation, including the right to
introduce evidence, to require the production of evidence and to question witnesses.
7. The City finds that its actions are appropriate and reasonable in light of the mandates
contained in federal law including 47 U.S.C. § 546.
PASSED AND ADOPTED this 9th day of June, 2014:
ro-c—
•e Flaherty, Mayo
(ATTEST)
Jim Ericson, City Administrator
(SEAL)
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