CC PACKET 11102015 - Laserfiche WebLink

Home Browse Search

STAFF MEMO CenturyLink Cable Franchise INTRODUCTION The City is one of nine member cities of the North Suburban Communications Commission (the “NSCC”). Following the submission of an application for a cable television franchise for each member city of the NSCC, the above-entitled matter initially came before the NSCC for a public hearing on Thursday, March 5, 2015, at the NSCC’s Office in Roseville. The public hearing was held open through Friday, March 13, 2015, for the purpose of allowing additional written public comments. Following the public hearing, the NSCC’s Executive Director prepared a detailed report entitled “Staff Report on CenturyLink Cable Franchise Application” (the “Staff Report”). The NSCC received and filed the Staff Report and directed NSCC staff to negotiate a cable television franchise with CenturyLink. NSCC staff negotiated a cable television franchise with CenturyLink and presented it to the NSCC on October 7, 2015. The NSCC adopted a Findings of Fact and Recommendation on October 7, 2015, which recommended approval of the negotiated cable television franchise with CenturyLink by each member city. The CenturyLink Cable Television Franchise is now before the City Council for consideration. DISCUSSION Supporting information On February 20, 2015, the NSCC received a cable franchise application covering each member city from CenturyLink. Comcast Cable currently has a non-exclusive franchise agreement with the City, which means the City Council may grant additional franchises to provide cable service in the City. A public hearing on the application was held on March 5, 2015, and additional written comments from the public were accepted through March 13, 2015. Following the public hearing, staff prepared a Staff Report (“Report”), which recommended that the NSCC receive and file the Report and direct staff to negotiate a cable franchise with CenturyLink, consistent with the Report. On April 10, 2015, the NSCC adopted the recommendation. This action did not approve a franchise. The NSCC’s outside attorney, Mike Bradley, Bradley Hagen & Gullikson, LLC, in consultation with NSCC Executive Director, Coralie Wilson, engaged in cable franchise negotiations with CenturyLink. The attached cable franchise is the product of those negotiations. In reviewing the CenturyLink cable franchise, there are two primary issues to consider. The first is whether federal law preempts Minnesota’s 5-Year Build Statute. Minnesota Statues Section 238.084, subdivision 1(m) requires all initial franchises to have a provision that requires a cable operator build out its cable system at a rate of 50 plant miles per ye ar and that its cable system be substantially complete within 5 years. As the Report indicated, CenturyLink claims that this 5-Year Build Statute is an unlawful barrier to entry and is preempted by federal law and an FCC 33