2015-12-09 CC Packet - Laserfiche WebLink

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STAFF MEMO CenturyLink Cable Franchise INTRODUCTION The City is one of seven member cities of the North Metro Telecommunications Commission (the "NMTC"). Following the submission of an application for a cable television franchise for each member city of the NMTC,the above-entitled matter initially came before the NMTC for a public hearing on February 18, 2015, at Spring Lake Park City Hall. Said public hearing was held open through February 27, 2015,for the purpose of allowing additional written public comments. Following the public hearing, the NMTC's Executive Director prepared a detailed report entitled "Staff Report on CenturyLink Cable Franchise Application" (the "Report"). The NMTC received and filed the Report and directed NMTC staff to a negotiate cable television franchise with CenturyLink. NMTC staff negotiated a cable television franchise with CenturyLink and presented it to the NMTC on October 21, 2015. The NMTC adopted a Findings of Fact and Recommendation on October 21, 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 12, 2015, the NMTC 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 February 18, 2015, and additional written comments from the public were accepted through February 27, 2015. Following the public hearing, staff prepared a Staff Report ("Report"),which recommended that the NMTC receive and file the Report and direct staff to negotiate a cable franchise with CenturyLink, consistent with the Report. On April 15, 2015, the NMTC adopted the recommendation.This action did not approve a franchise. The NMTC's outside attorney, Mike Bradley, Bradley Hagen &Gullikson, LLC, in consultation with NMTC Executive Director, Heidi Arnson, 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 year 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