2008-07-23 CC Agenda & Work Session

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I , I i II' ~ ) 1 ; II-i 111 '..l j) ( ) , I Ji Municipalities' ability to collect fees for public, educational, and governmental access (pEG), above and beyond franchise fees, continues to face powerful challenges. The FCC has approved two franchising orders that have the potential to eliminate all funding for the operation of PEG facilities above and beyond the 5% franchise fee. The Orders are being challenged, with arguments for the appeal having been presented before the Sixth District Court, in February of 2008. A decision is expected soon. That decision could have a huge impact on the operation of North Metro TV. In addition to FCC actions, attempts continue to be made in the Minnesota legislature to move toward statewide franchising. While the previous fervor to adopt statewide franchising laws in Minnesota has calmed with the changing priorities of Qwest, a Franchise Study Bill was signed into law in May of 2008. The University of Minnesota will be commissioned to study the effects of statewide franchising, in a minimum of three states that have adopted such laws. The law states that municipalities and communities of color must be consulted during the study. It will be important to remain vigilant throughout this process. 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, reduction 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, beginning as early as 2008 and certainly into 2009. While the potential financial uncertainties can be very distracting, 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 are very intent upon developing new sources of income, maximizing our visibility in the community and awareness of the benefits of having a community television facility. We will also do whatever we can to insure our political leaders are well infonned 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. I I P.5