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City Council Regular Meeting Minutes January 23, 2007 Page 3 Ms. Wilson stated the North Suburban Cable Commission believes Quest is preparing State legislation asking for support to introduce the bill. She pointed out Quest stated the FCC order is not good for them and believe state legislation needed. 5 Ms. Wilson informed Council a local government summit would be held on February 6, 2007 to 6 talk about the FCC order and a legislative update. She stated the Cable Commission is 7 attempting to make sure all State and local governments are on the same page. She stated that if 8 the State Legislature introduced the bill, the Cable Commission would ask the City to write 9 letters and make phone calls. 10 11 Councilmember Gray stated he did not like excessive governmental control but unfortunately in 12 areas such as telecommunication, a free market is difficult because of the way it is setup. He 13 stressed that when it comes to the City's rights-of-way being challenged, the City must defend 14 them vigorously. He encouraged Council to support the actions of the North Suburban Cable 15 Commission as a group of ten cities. 16 17 Ms. Wilson stated this began as a build out issue when the Minnesota Telecommunications 18 Association, which is compose primarily of smaller greater Minnesota independent telephone 19 companies, went to the State Legislature asking for the removal of language from the code that 20 said new franchises had to match the incumbent in terms of area served. She stated telephone 21 companies do not want to be required to serve the entire community. She indicated the 22 companies prefer to choose areas where it is easiest to build and make the most money. 23 24 Mayor Faust explained that 15 or 20 years ago ten northern suburban cities formed a consortium 25 to provide cable access to every home at no charge. I -Ie stated the City receives CI'V channel 15 26 at no charge, which could potentially be at risk. He stated the City receives a franchise fee that 27 pays for the equipment to cover many City events. 28 29 Ms. Wilson replied the Cable Commission receives an operating grant to pay for public access to 30 provide the trucks and training. She emphasized the franchise fee is a grant permission to a 31 private entity to use public rights-of-way. She explained the franchise fees, the operating grant, 32 and the public access channel are the payment the private entity makes to use public land. She 33 stated it is unfortunate that this concept is getting lost in the debate. 34 35 Councilmember Horst asked Ms. Wilson how the under served areas of St. Anthony would be 36 covered. 37 38 Ms. Wilson replied that in 1983 it was built as an entertainment service for residential homes. 39 She explained the build out requirement was based on 40 homes per cable mile. She stated she 40 would look into the areas that are still not served. 41 42 Councilmember Horst stated cable is not available in the Silver Lake Village area. 43 Ms. Wilson explained that in the 1970's and 80's, not many multiple dwelling units existed. She 44 stated the challenge with these units is they are owned by an owner who could choose any 45 provider they want to and cut deals with satellite television systems. She stated the law is very 3