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HomeMy WebLinkAbout5J - Franchise TVQ h ~''~ 4646 Dakota Street S.E. { u x ? Prior Lake, MN 55372-1714 '4. ~ - -- s--- _y....~.n __.~.~._- z~ _~_-~_ `~~~.~ , ~~ ~'NES~ CITY COUNCIL AGENDA REPORT MEETING DATE: March 16, 2009 AGENDA #: 5J PREPARED BY: Frank Boyles, City Manager AGENDA ITEM: CONSIDER APPROVAL OF A REPORT AUTHORIZING PUBLICATION OF A NOTICE BY THE CITY OF PRIOR LAKE, MINNESOTA, OF ITS INTENT TO CONSIDER AN APPLICATION FOR FRANCHISE TV. DISCUSSION: Introduction The purpose of this agenda item is to request Council authorization to publish a notice of its intent to consider an application for a franchise. HiStON State laws set forth a process for issuing franchises for cable television services. The process includes the following: • The City publishes a notice of intent to consider applications for franchise for two successive weeks in the official newspaper. • City makes an official application form available to all parties interested in making proposals. • The City receives applications for franchise from interested providers no sooner than 20 days from the date of the first official public notice. • The Council conducts a public hearing to consider applications received and receive public input thereon. • No sooner than seven days from the closing of the public hearing, the Council may adopt an ordinance granting a cable franchise. • The grantee (cable company) has 30 days from the date of Council approval of the franchise ordinance to execute, return and provide insurance. • The City publishes the entire ordinance or a summary thereof in the official newspaper. Integra Telecom has advised the City that they are interested in offering Internet Protocol T.V. (IPTV) services to Prior Lake properties which they are authorized by the Public Utility Commission (PUC) to serve. Accordingly, they have requested that the City initiate the process. Current Circumstances Initiating the franchising process does not obligate the City to enter into a new franchise. The terms of the new franchise must be generally equivalent to those which Mediacom operates under. We have met with Integra representatives to review franchise provisions and are confident that if the Council decided to proceed, we could reach a mutually amicable agreement. www. cityofpriorlake. com `1~'~ione 952,447.•9800"~~/ Fax 952.447.4245 A preliminary schedule for the franchising process is as follows: March 16 Council authorizes staff to publish notice of intent to consider a lication for franchise March 21 March 28 Publish notice two weeks in a row March 23 Re uest franchise ro osals A ril 15 Receive ro osals A ril 20 Conduct ublic hearin Ma 4 Ado t franchise ordinance June 5 Last da for rantee to execute franchise June 13 Cit ublishes ordinance summa This schedule may be adjusted to some extent if submissions or actions are taken sooner or later than anticipated. Conclusion The Council should determine if it desires to publish the public hearing notice (attached) within this timetable. ISSUES: On other matters, the Council has typically supported competition and choice. If a franchise were issued, the persons within the new service area could have multiple sources of cable TV. The Council is not obliged to issue a new franchise. The process will assure that the information needed by the Council to make the decision is available. FINANCIAL The franchising process does involve City Attorney and staff time. As part of the IMPACT: franchise agreements, the City can request the same considerations provided by Mediacom to reimburse itself for expenses. If more customers are served between the two cable companies, the City's PEG access fees and franchise fees can increase. ALTERNATIVES: 1. Motion and second to authorize the staff to publish an official notice in two consecutive editions of the newspaper. 2. Take no action and request additional information. RECOMMENDED Alternative #1. MOTION: NOTICE BY THE CITY OF PRIOR LAKE, MINNESOTA OF ITS INTENT TO CONSIDER AN APPLICATION FOR A FRANCHISE Notice is hereby given that it is the intent of the City Council of the City of Prior Lake, Minnesota, to consider the an application for a franchise for the purpose of operating a cable communications system to serve the City of Prior Lake, Minnesota. This notice is given in accordance with the requirements of Minn. Stat. § 238.081. Applications shall be submitted in response to this Notice and Request for Proposals available on request in the office of the City Manager, City Hall, 4646 Dakota Street SE, Prior Lake, MN 55372. A. The deadline for submitting applications is 4:30 p.m., April 15, 2009. B. Applications shall be in writing, notarized, in a format consistent with the Request for Proposals, and sealed with two (2) copies enclosed. Applications shall be delivered to the attention of the City Manager, City Hall, 4646 Dakota Street SE, Prior Lake, MN 55372. C. Applicants are requested to be present at a public hearing before the City Council, that is presently scheduled to be held at City Hall, beginning at 6:30 p.m. or as soon as possible thereafter on Monday, Apri120, 2009. Each applicant will be given time to summarize its application and provide information responsive to City Council questions. D. The Request for Proposals sets forth in detail the expectations of the City of Prior Lake Minnesota and the requirements of the content of the franchise proposal and are made in conformance to the requirements of Minn. Stat. § 238.081, subd. 4. E. The services to be offered are identified in the Request for Proposals and include a system providing public, educational and governmental access channels consistent with state law; a mix, level and quality of programs and services comparable to other systems in the region serving similar sized communities and customer services and maintenance plans to ensure quality service to the subscriber. The Request for Proposals provides further details of the services to be offered. F. The criteria for evaluating the applications and priorities for selection are as follows: 1. The completeness of applications and conformance to Request for Proposals; 2. Customer service policies and system testing; 3. The legal, technical, and financial qualifications of the applicant; and 4. The proposal for community services, including public, educational, and governmental access in accordance with state law. G. Applications which meet the above criteria in the opinion of the City Council shall be considered for a franchise. H. The applicant(s) selected by the City Council will be required to accept the franchise documents granted within thirty (30) days after adoption. I. All questions concerning this request should be directed to the City Manager Date: March 16, 2009 By: Its: Publish in: The Prior Lake American on March 21, 2009 and March 28, 2009. Affidavit of Publication required for each publication.