2007-06-27 CC - Laserfiche WebLink

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----- - - --- -- --- --- ------ -- - --- - - - ~e starting point Municipalities' ability to negotiate cable television franchises and to collect fees for public, educational, and governmental access (pEG), above and beyond franchise fees, continues to face powerful challenges from several sources. While Congress failed to pass franchising legislation in 2006, the FCC did approve a sweeping franchising order that has the potential to eliminate 100% of the North Metro's PEG fees. The FCC has also issued a Further Notice of Proposed Rulemaking to determine when the new rules, which only apply to competitive video providers such as phone companies, should also apply to incumbent cable operators. At the same time, the Minnesota Legislature has introduced a bill that would provide for state-wide franchising of competitive video providers. The bil~ which could be voted on in 2008, could also eliminate PEG fees. We go into 2008 with an uneasy feeling. Because the FCC order is being appealed, and we don't yet know the results of the Further Notice of Proposed Rulemaking, or whether state legislation will pass, we will most likely reach 2008 with current sources of funding intact Unfortunately, those funding levels could very possibly be significantly reduced in 2008. The Commission and Operations Committee have been closely monitoring FCC and legislative activity. The potential loss of such a significant amount of funding could necessitate fundamental changes in the North Metro Telecommunications Commission's operation. Choices will have to be made that could result in loss of services, reductions in franchise fee income for cities, or a combination of both. While our current franchising procedures and funding mechanisms have allowed the North Metro Telecommunications Commission operation to thrive, the very real threat to our funding presents us with challenges that will most likely need to be addressed in 2008. Our goals for the year reflect that reality. We will continue to provide all of the services our cities, schools, and citizens have come to rely upon, as long as we can. We will also work hard to continue to develop new sources of income, public awareness of our services, and we will do whatever we can to insure our political leaders are well informed regarding the impact changes in franchising laws could have on municipalities and community television. We look forward to a year of development and growth, but are prepared to make any operational changes necessary, to insure the survival of community television in the North Metro. ~.;)