2015-12-09 CC Packet - Laserfiche WebLink

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decision referred to as the 621 Order. The Report also indicated that there is no case law in Minnesota directly addressing preemption of the 5-Year Build Statute. The Report concluded that CenturyLink has a good faith basis on its preemption claim and is willing to indemnify the City related to any litigation surrounding the grant of a franchise to CenturyLink. CenturyLink refused to incorporate the language of the 5-Year Build Statute in the proposed franchise, based on its preemption argument. As described below,the proposed CenturyLink franchise ordinance has provisions for a reasonable build-out of the city. The proposed franchise ordinance also has provision for defense and indemnification of the City and the NMTC regarding this issue. The next issue is whether the CenturyLink franchise contains a reasonable build-out schedule. The franchise ordinance recognizes that CenturyLink has already constructed a legacy communications system throughout the City, which is capable of providing telephone and internet service. The build-out provisions in the franchise are related to upgrades of the legacy system to make it capable of providing cable service to all city residents. The proposed CenturyLink Franchise addresses build-out as follows: • Complete Equitable Build-Out. Goal is to build-out the entire city over 5-year term, based on market success, with a significant investment targeted to areas below the median income in the city. • Initial Minimum Build-Out Commitment. 15%of the city over two years. o CenturyLink must make its best effort to complete the initial deployment in a shorter period of time. o Equitable Deployment to households in the City. o Must include a significant number of households below the medium income of the City. o CenturyLink permitted to serve more households than the initial commitment. • Quarterly Meetings. Starting January 1, 2016, CenturyLink must meet with the City [and/or City designee at NMTC] and show to the City's satisfaction: o Number of households capable of being served and actually served. o Compliance with anti-redlining requirements. o Maps and documentation "showing exactly where within the City the Grantee is currently providing cable service." • Additional Build-Out Based on Market Success. Starting January 1, 2016, the CenturyLink build-out commitment will increase if its penetration rate is at least 27.5%in the areas that it is offering service. o Example: If CenturyLink is offering service to 60%of the City and CenturyLink has penetration of 30%in that area,then the build-out commitment will increase by 15%, to cover 75%of the city. o Additional build-out commitment continues until all households are served. • Line Extension. No initial mandatory line extension, unless CenturyLink becomes