CR 01-01 Cable Franchise
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January 2, 2001
Council Report 2001-01
Cable Franchise for Everest Communications
Proposed Action
Staff recommends adoption of the following motion: Approve Ordinance 2001-849 for first reading.
This action will continue the process of awarding a new cable franchise in the City of Hopkins.
Overview
The City of Hopkins, along with the other four cities of the Southwest Suburban Cable Commission
has been in the process of considering new cable franchises since April of 2000. Two companies,
Everest Communications and WideOpen West (WOW), have been pursuing franchises in the
Southwest.
The individual cities instructed the Commission to negotiate with Everest and WOW to prepare a
Cable Television Franchise Ordinance that would be consistent with all applicable local, state and
federal laws. In particular, the Commission was guided by level playing field language contained
within Time Warner's existing franchise and state law. That language requires that any franchise
granted to a competitor of Time Warner must not be any less burdensome or more favorable than the
terms and conditions applied to Time Warner.
With these issues in mind the Commission negotiated the attached Ordinance for Everest. The
Commission has reviewed the franchise ordinance and recomm~nded approval. The franchise
ordinance must be approved by the City of Hopkins in order for a cable system to be built in Hopkins.
Primary Issues to Consider
How does the Everest franchise ordinance differ from that of Time Warner?
Are there any issues specific to the City of Hopkins?
Supportin2 Information
Analysis of the Issues
Summary of Ordinance 2001-849 (A copy of the complete ordinance is available from the City
Clerk. )
es Genellie
Assistant City Manager
Financial Impact: $ None Budgeted: Y IN
Related Documents (CIP, ERP, etc.):
Notes:
Source:
Council Report 2001-01
Page 2
Analysis of the Issues
How does the Everest franchise ordinance differ from that of Time Warner?
Generally, the Ordinances contain language substantially the same as that imposed on Time Warner
with a few notable exceptions.
The Everest Ordinance contains an institutional network requirement where the City will pay the
incremental costs associated with the provision of additional fiber and the cost for any extension of the
fiber beyond those locations where Everest is installing fiber as part of its subscriber network. Everest
has agreed to a 36-month construction schedule and will have a IS-year franchise term.
Time Wamer' s existing franchise, which was renewed approximately four years ago, was granted for a
term of 15 years and contains system upgrading requirements but no institutional network provisions.
The Commission has recommended approval of the Everest Ordinances. The Commission believes
that the differences between the documents are consistent with the level playing field requirements
contained within the Time Wamer franchise and represent negotiated compromises which are in the
best interests of the member municipalities.
Are there any issues specific to the City of Hopkins?
The City of Hopkins currently does not have a Right-of- W ay ordinance. The City would like to add
language to the Franchise Ordinance that would require Everest to abide by any future Right-of-Way
ordinance. The proposed Right-of- Way ordinance would be similar to ordinances already adopted by
other cities and should not impose any unreasonable requirements on the cable company.
Alternatives
1. Approve Ordinance 2001-849 for first reading. This will continue the process of establishing
new cable franchises in the City.
2. Do not approve Ordinance 2001-849.
3. Continue for additional information.
Staff recommends Alternative #1.
CITY OF HOPKINS
COUNTY OF HENNEPIN
SUMMARY OF
ORDINANCE NO. 2001-849
AN ORDINANCE ESTABLISHING A CABLE TELEVISION FRANCHISE FOR
EVEREST COMMUNICATIONS
The following is a summary of the major provisions of the new ordinance:
Grants to Everest Minnesota, LLC (the Grantee) a cable television Franchise that shall expire
on December 31,2015.
The new cable system shall have a capacity of 860 MHz will the capacity of at least 300
channels. The System shall serve an average of 150 homes per node. System construction
shall be completed and in use within thirty-six (36) months from the Effective Date of the
Franchise.
The franchise requires the Grantee to provide one outlet of Basic Service, the Cable
Programming Service Tier and one Converter, if needed, to all public buildings and schools.
Grantee shall provide four public, educational and government (PEG) Access Channels (the
"Access Channels"). One channel shall be dedicated to public access, one channel shall be
dedicated to governmental access, and two channels shall be dedicated to educational access.
Prior to the provision of Cable Service within the City, Grantee will provide one large facility
containing one studio with square footage of not less than 1440 square feet for use by the
cities of Eden Prairie, Edina, Hopkins, Minnetonka and Richfield ("Member Cities") at a
location within the Member Cities mutually agreeable to Grantee and the Member Cities for
public, educational and governmental access production.
Prior to the provision of Cable Service within the City, Grantee shall provide no less than
$200,128 annually for PEG access operating expenses collectively for the cities of Edina,
Eden Prairie, Hopkins, Minnetonka, and Richfield.
The Ordinance contains an institutional network requirement where the City will pay the
incremental costs associated with the provision of additional fiber and the cost for any
extension of the fiber beyond those locations where Everest is installing fiber as part of its
subscriber network.
The Ordinance requires periodic subscriber surveys.
The Ordinance requires Grantee to pay to the City a Franchise Fee in an amount equal to five
percent (5%) of its annual Gross Revenues.
The Ordinance requires a bond to ensure that, during the construction of the System, money
will be available to pay any costs incurred by the City due to a failure of the cable company
in installation of the system.
A printed copy of the entire ordinance is available from the City Clerk and at the Hopkins
library.
First Reading of Ordinance 2001-849
Second Reading of Ordinance 2001-849
Publication of Summary Ordinance 2001-849
Effective Date of Ordinance 2001-849
January 2, 2001
January 16,2001
January 24, 2001
February 14, 2001
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