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<br />NORTH METRO TELECOMMUNICATIONS COMMISSION <br /> <br />RESOLUTION 2004-09 <br /> <br />A RESOLUTION CONCERNING ANY INCREASE IN BASIC SERVICE RATES <br />ATTRIBUTABLE TO THE CARRIAGE OF VICTORY SPORTS ONE ON COMCAST'S <br />CABLE SYTEMS IN THE MEMBER CITIES <br /> <br />WHEREAS, the North Metro Telecommunications Commission (hereinafter "the <br />Commission'') is a Joint Powers Commission organized pursuant to Minn. Stat. ~ 471.59, as <br />amended, and includes the municipalities of Blaine, Centerville, Circle Pines, Ham Lake, Lexington, <br />Lino Lakes and Spring Lake Park, Minnesota (hereinafter, the ''Member Cities''); and <br /> <br />WHEREAS, Section 623 of the Cable Communications Policy Act of 1984, 47 U.S.C. <br />~ 543, as amended, authorizes local franchising authorities, such as the Member Cities, to <br />regulate rates for basic cable service; and <br /> <br />WHEREAS, the Commission's Joint Powers Agreement includes the power to regulate <br />rates on behalf of the Member Cities; and <br /> <br />WHEREAS, the Commission is certified as a rate regulation authority pursuant to rules <br />of the Federal Communications Commission; and <br /> <br />WHEREAS, as a certified rate regulation authority, the Commission is concerned about <br />activities and agreements which may result in increased basic service rates within the Member <br />Cities, since all subscribers in the Member Cities wishing to receive cable service must subscribe <br />to basic service and basic service rates are within the Commission's jurisdiction; and <br /> <br />WHEREAS, Victory Sports One ("Victory Sports") is a new regional sports cable network, <br />which is an affiliate of Twins Sports, Inc., the corporate entity that owns the Minnesota Twins; and <br /> <br />WHEREAS, Victory Sports owns the broadcasting rights to carry the Minnesota Twins <br />games and select University of Minnesota basketball and football games in 2004; and <br /> <br />WHEREAS, Comcast of Minnesota, Inc., the current cable television franchise holder in the <br />Member Cities ("Comcast"), and Victory Sports have been unable to reach a mutually acceptable <br />carriage agreement and, according to reports, they are not expected to reach agreement prior to the <br />start of the Minnesota Twins regular season; and <br /> <br />WHEREAS, according to Victory Sports, it has reached carriage agreements with only <br />twenty (20) mostly rural video providers, serving 134 greater Minnesota cities. Victory Sports has <br />not reached agreements with any of the other large metropolitan multichannel video program <br />distributors, such as Time Warner Cable, Charter Communications, Mediacom, DirecTV, or the <br />Dish Network; and <br />