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Department Approval <br />�:i � <br />� <br />REQUEST FOR COUNCIL ACTION <br />Date: November 16, 2015 <br />Item No.: 14.a <br />City Manager Approval <br />Item Description: Consider Granting a Cable Television Franchise to CenturyLink <br />BACKGROUND <br />The North Suburban Communications Commission ("NSCC") manages the City's cable television <br />franchises on behalf of the City. On October 7, 2015, the NSCC voted to recommend that each member <br />city enter into a cable television franchise agreement with CenturyLink. <br />The City Council conducted a public hearing on November 9. Mike Bradley, legal counsel for the <br />NSCC provided a brief presentation of the draft franchise ordinance and agreement. There was not any <br />public comment but a representative from CenturyLink was present to answer any questions for the <br />City Council and the public. <br />In summary, the agreement has a proposed term of five years with a goal of a complete build-out of <br />��� CenturyLink's infrastructure within the city during that period. CenturyLink will provide 16 high- <br />� definition Access Channels to NSCC. CenturyLink will also allow cities to have public service <br />announcements on non-public access channels during unsold/unused airtime and will provide 25 hours <br />� of video on demand of city content for subscribers to access through their TV. CenturyLink will pay a <br />franchise fee based on 5% of the gross revenue from Roseville customers and pay a PEG fee of $4.15 <br />per month. These amounts are the same as Comcast is required to pay. <br />POLICY OBJECTIVE <br />Having a franchise agreement with CenturyLink will foster a competitive market for cable television <br />subscribers. <br />FINANCIAL IMPACTS <br />� At this point, it is not certain if allowing for a CenturyLink will provide additional revenue. While <br />CenturyLink will pay Roseville a franchise fee, it is unclear whether the total cable TV subscription <br />base will increase or if the existing subscriber base will remain stable and make a choice between <br />Comcast and CenturyLink. Staff does not believe that the overall amount of franchise fees will <br />decrease. The City currently receives slightly over $400,000 annually in franchise fees. <br />STAFF RECOMMENDATION <br />Staff recommends that the City Council adopt the draft Findings of Fact regarding the CenturyLinlc <br />Cable Franchise , adopt the draft Cable Television Franchise Ordinance with CenturyLink, and adopt a <br />an ordinance summary for publication. <br />Page 1 of 2 <br />