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State law does not allow the City to grant an additional franchise "on terms and conditions more <br /> favorable or less burdensome than those in the existing franchise pertaining to three (3) key <br /> areas: "(1)the area served; (2) public, educational, or governmental access requirements; or(3) <br /> franchise fees."8 <br /> For telephone companies like Frontier, state law specifically requires that"[amn area for an <br /> additional cable franchise is not more favorable or less burdensome if. . . the area of the franchise <br /> is no less than the area within the municipality in which the telephone company offers local <br /> exchange telephone service."9 <br /> Similarly, Section 2.1 (c) of Charter's Franchise states that the City"will not grant an additional <br /> Franchise on terms and conditions more favorable or less burdensome than those in this <br /> Franchise. The City may impose additional terms and conditions in any additional Franchise." <br /> Any franchise granted by the City to a competitive provider must abide by this mandate. The <br /> Frontier Application, however, is bereft of important commitments on substantive terms and <br /> conditions that must parallel those in the Charter Franchise. For example: <br /> • Service Availability& Build Out. The Charter Franchise requires service throughout <br /> the City to all areas with at least nine (9)homes per quarter cable mile, as the City chose <br /> to assure service availability to as many residents as possible. The Frontier Application <br /> includes no such commitments. <br /> • PEG. The Charter Franchise: i)requires two (2) PEG channels, one of which must be <br /> narrowcast to only Delano residents; ii) includes a PEG Fee of up to eighty-five cents <br /> ($.85)per subscriber per month for PEG capital support; iii)requires Charter and the City <br /> to jointly fund a subscriber survey during the 5th and 10th year of the franchise to assess <br /> subscriber satisfaction with PEG programming and appropriate support levels; and iv) <br /> requires Charter to pay the cost of the first one-hundred and fifty(150) feet of any new <br /> system construction necessary to permit live origination at up to five(5) locations. The <br /> Frontier Application makes no such commitments to fund or support PEG. <br /> • Free Service. The Charter Franchise requires complimentary service to numerous public <br /> buildings. The Frontier Application proposes only that it will provide service to those <br /> public buildings that are within its (yet undefined) service area and only if the building <br /> isn't currently served by Charter. <br /> • Performance and Construction Bonds. The Charter Franchise requires a$50,000 <br /> performance bond throughout the term of the franchise and when construction costs are <br /> expected to exceed $50,000, Charter must obtain a construction bond in"an amount <br /> mutually agreed upon". Frontier's Application contains no such commitments. <br /> 8 Minn. Stat. 238.08, Subd. 1(b). <br /> 9 Id. Subd. 1(c). <br /> 4 <br />