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0/98 THE- 12: 29 FAA ]00 i 1. FLEMBILITY FOR PVTLTRE CABLE AND T f +t , cb_7 TJ S ITI T V A. Dry Cable Television Ordinance The City is considering adoption ot" a renewed cable. television franchise ordinance proposed by MediaOne, and approved by she North Suburban Cable Co mission (h=iu the "'proposed rd-1-lance's 5 Overall; we believe the Proposed Ordinance is an exceptional deal for the Cirly in terms of service o6crings, system upgrades, PEG access, lnstitutioual Network facilities, and more. Relative to other fraricbise areas �-Fith which we are fa it ia_r, the Commission negotiated an excellent deal- f r.the mcmber Cities. Hoixe er, the City is concerned about. the degree of flexibility the proposed ordinance provides the City going forward_ p ecifica]ly, the. City- asked Fredrl kson & Byron to analyze the Proposed Ordinance, identify and discass provisions which expand or contract the itv"s ab1l1 ty to further rave the coin munit }s cable and telecommunications infrastructure. The purpose of this out iiu:e 15.0.spot issttt�s for discussion Vni th the Clqr,. This is not an exhaustive legal lysis of the issues identified. Ftu her, the fact that a paitcul ar provision of the -pr p es ed, Ord& Ice is identified below as an issue does not necessarily mean that the provision, :�.s draped, is iusuffici ent to protect the City}s interests, m meet the City's current and fature cable-related needs_ Rather, any provisions which affect.positi v elf{ or negatively the City"s ability to further de .-.-ts�-cab 1e and telecom wucati ns in as tnietre have been flagged for disc lien, 1-for no other purpose that to er-sure that the City fully =dc;fa 4s the-.-.lolp tt•-ofthese provisions With these.': (twits in mind we believe the following provisions of the ]Proposed Ordinance rsis mes for the City �e by disc sf xt: ., ,z Section 2.2(c)-Nln-Wdusivitv of Franc ` ..L The secoi-id sentence of this paragraph is commonly refined to as a "level laying field provision. The ppose of level playing old provisions is is o eo sire that if competitive cable teleV i sien franchises are -anted, he .;; competing companies at-e regulated. with an even hand by the City. In order to serve the City, Media One hay made a l ar a investment in cable system plant and equipment{ Under the terms of the Franchise, Media0rie is investing evcn more to upgrade a the systcmn_ Undersunidably, Mcdia ne is concerned about the econoniic impact that competition would have on etha ne}s ability to reccvex their _ vestment and earn a reasonable Outhae-Roseville, NT eject #2162'01172-1 ., 77/3 0/98-Pg. t