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I , I ,. May 18, 1995 Background to Model Telecommunications Permit Ordinance I The following model ordinance is the result of a cooperative effort between James Strommen, I of Kennedy & Graven Chartered, formerly Holmes & Graven Chartered in Minneapolis, attorneys for the Suburban Rate Authority ("SRA"), and Stan Peskar, General Counsel of the League of Minnesota Cities. The model ordinance is based primarily on an SRA model I ordinance prepared by Mr. Strommen and Dave Kennedy, also of Kennedy & Graven. The SRA is a joint powers organization consisting of 32 Twin City suburban municipalities. The SRA has actively intervened in electric, gas, and telecommunications matters before the I Minnesota Public Utilities Commission since the Commission's formation in 1974. Kennedy & Graven acts as city attorney for a number of Twin City municipalities and is bond or special project counsel for other Minnesota cities. I The purpose of the model ordinance is to provide uniform police power regulation over existing and new telecommunications equipment and facilities on public property. This is not a I franchise. The right of Minnesota cities to require a franchise from telecommunications carriers is unclear, whether they be local service providers, long distance, cellular or providers of new technology such as video dialtone. This issue is the subject of a legislative study to be .. conducted in 1995 for a report to the legislature by February 15, 1996. The powers set forth in this model ordinance are consistent with police powers generally and specifically granted to home rule and statutory cities in Minnesota. To the extent franchise rights exist, these I ordinances would still be relevant and applicable. The provisions in this model ordinance are typical of what would be included in a franchise . agreement, with the exception of a provision for franchise fees (e.g., gross receipts) and the more comprehensive provisions found in a cable franchise. This ordinance allows cities to defme rights and responsibilities regarding the location and relocation of utility equipment and . facilities, repair obligations, public safety and indemnity. This ordinance does not apply to electric, gas, or cable utilities. They are government by Minnesota Statutes, Chapters 216B and 238, respectively. I This ordinance should be reviewed carefully and coordinated with existing ordinances and permitting policies of your city. If you have any questions about the proposed provisions or the I background to this ordinance, please call Stan Peskar at 612-490-5600 or James Strommen at 612-337-9233. I I f' c\sgp\sra.ord I -