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Request for Action <br />To Item Number <br />Ma Tor and CinT Council 7.1 <br />Agenda Section Meeting Date Prepared by <br />Public Hearings August 1, 2022 Tina Allard, CityT Clerk <br />Item Description Reviewed by <br />Consider Issuance of Competitive Cable Cal Pormer, Cit�r Administrator <br />Franchise byT Tekstar Communications, Inc. Reviewed by <br />(Arvig) <br />Action Requested <br />The public hearing is a statutoryT requirement, and the mayTor is asked to open and close the hearing. No action is <br />needed at this time. The attorneyT �vill continue to process the application and provide a report with <br />recommendations later. <br />Background <br />CityT AttorneyT Jared Shepherd will attend via Zoom to present this item. Cable television is regulated by federal <br />and state la`v. Companies `vanting to provide cable television service are required byT the Federal Cable Act to <br />obtain a cable franchise from the cityT. <br />Level Playing Field Statute <br />Per state law, when there is an e�sting cable company, a competitive fYanchise must not be more favorable oY less <br />burdensome than those in the existing franchise pertaining to: <br />1. The aYea served <br />2. Public, educational, or governmental access requirements <br />3. Franchise fees <br />Charter is our e�sting franchise, and their agreement requires them to provide cable every�vhere in the cityT `vhere <br />there are nine homes per 1/4 mile of cable. And Charter must expand any�vhere else in the cityT if customers will payT <br />a poYtion of the extension cost. <br />It is understandable and would be unreasonable for a new compan�T to immediately be able to fullyT build out their <br />s�Tstem to be equal to an e�sting cable companyT but benchmarks requiring Tekstar to increase its build-out after a <br />reasonable time should be incorporated into the franchise agreement. <br />Currentl�T the cable commission attorney is working on making sure the franchise agreement will meet la`v <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 />payT attorne�T 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 to`vard channel programming. <br />The Elk River Vision <br />A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional <br />se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty. <br />rowEREo ar <br />�I'1 ���� <br />Up�iited.• August 2020 <br />