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Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />7.1 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />Public Hearings <br />August 1, 2022 <br />Tina Allard, City Clerk <br />Item Description <br />Reviewed by <br />Consider Issuance of Competitive Cable <br />Cal Portner, City Administrator <br />Reviewed by <br />Franchise by Tekstar Communications, Inc. <br />(Arvig) <br />Action Requested <br />The public hearing is a statutory requirement, and the mayor is asked to open and close the hearing. No action is <br />needed at this time. The attorney will continue to process the application and provide a report with <br />recommendations later. <br />Background <br />City Attorney Jared Shepherd will attend via Zoom to present this item. Cable television is regulated by federal <br />and state law. Companies wanting to provide cable television service are required by the Federal Cable Act to <br />obtain a cable franchise from the city. <br />Level Playing Field Statute <br />Per state law, when there is an existing cable company, a competitive franchise must not be more favorable or less <br />burdensome than those in the existing franchise pertaining to: <br />1. The area served <br />2. Public, educational, or governmental access requirements <br />3. Franchise fees <br />Charter is our existing franchise, and their agreement requires them to provide cable everywhere in the city where <br />there are nine homes per'/4 mile of cable. And Charter must expand anywhere else in the city if customers will pay <br />a portion of the extension cost. <br />It is understandable and would be unreasonable for a new company to immediately be able to fully build out their <br />system to be equal to an existing cable company but benchmarks requiring Tekstar to increase its build -out after a <br />reasonable time should be incorporated into the franchise agreement. <br />Currently the cable commission attorney is working on making sure the franchise agreement will meet law <br />requirements. <br />Financial Impact <br />We collect, from Spectrum/Charter a Franchise Fee, which is 5% of video -related gross revenues and are used to <br />pay attorney fees, equipment and channel needs, and certain communications related items. The PEG Fee is $0.85 <br />per subscriber/per month and is required to be utilized toward channel programming. <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity. <br />PIIEIEU IY <br />ATUR <br />Updated. August 2020 <br />