CR 2000-088 Authorize Publicatin Of Notice Of Intent To Franchise
June 6, 2000
~
,~
Council Report 2000-88
.
AUTHORIZE PUBLICATION OF NOTICE OF INTENT TO FRANCHISE
Proposed Action
Staff recommends that the Council approve the following motion: Move to authorize publication of a
Notice of Intent to Franchise.
This action will begin the process of soliciting applications for new cable franchises.
Overview
Several companies have notified the City that they are interested in building competing cable systems in
Hopkins. State law establishes the procedures for granting cable television franchises. The first step is to
publish a notice in the City's legal newspaper. Notices are also sent to any company that has indicated an
interest in being granted a franchise. WideOpenWest and Everest Connections Corporation have
requested that they be considered for franchises.
While the five cities of the Southwest Suburban Cable Commission (SWSCC) will be working together
on these franchise proposals, it is up to each City to initiate its own action. Applicants will be given until
July 14 to submit proposals.
.
Supporting Information
. Notice of Intent to Franchise
. Timetine for Processing Requests for a Cable Television Franchise
. Letter from WideOpen West
. Letter on behalf of Everest Connections Corporation
J al s A. Genellie
ssistant City Manager
Financial Impact: $ $0 Budgeted: Y/N Source:
Related Documents (eIP, ERP, etc.):
Notes: Any expenses by the City will be reimbursed by the companies seekingfranchises
.
.
NOTICE BY THE CITY OF HOPKINS, MINNESOTA
OF ITS INTENT TO FRANCHISE A CABLE COMMUNICATIONS SYSTEM
Notice is hereby given that it is the intent of the City Council of the City of Hopkins,
Minnesota, to consider the grant of an additional franchise(s) for the purpose of constructing a
cable communications system to serve the City of Hopkins, Minnesota. This notice is given in
accordance with the requirements of Minnesota Statutes Section 238.081.
Applications shall be submitted in response to this Notice and to a Request for Proposals
and Proposed Franchise Documents available on request in the office ofthe Assistant City
Manager, City Hall, 1010 South First Street, Hopkins, Minnesota 55343, phone: 612.935-8474.
A. The deadline for submitting applications is July 14, 2000.
.
.
334185/1
B.
Applications shall be in writing, notarized, in a format consistent with the Request
for Proposals, and sealed with ten (10) copies enclosed. Two (2) additional
copies of the application must be sent to the attention of Mr. Brian T. Grogan at
Moss & Barnett, 4800 Norwest Center, 90 South Seventh Street, Minneapolis,
MN 55402, who will be providing assistance to the City on this matter. Each
application shall include a nonrefundable application fee of Seven Thousand Five
Hundred Dollars ($7,500) in the form of a certified check made payable to the
City of Hopkins, Minnesota. The applications shall be delivered to the attention
of the Assistant City Manager, City Hall, 1010 South First Street, Hopkins,
Minnesota 55343, phone: 612-935-8474. Applicants are hereby on notice that
any and all costs incurred by the City and the Southwest Suburban Cable
Commission, of which the City is a member, with respect to the franchise
procedure and franchise award which are not covered by the $7,500 application
fee shall be recovered from Applicant.
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 7:30 p.m. on
September 5, 2000. Each applicant will be given time to summarize its
application. The City Council may then continue the public hearing to permit
further review of the application before a final decision is made to select qualified
applicants.
D. The Request for Proposals and Proposed Franchise Documents set forth in detail
the expectations of the City of Hopkins, Minnesota and the requirements of the
content of the franchise proposal and are made in conformance to the
requirements of Minnesota Statutes Section 238.081, subd. 4.
E.
The desired system design and services to be offered are identified in the
Proposed Franchise Documents attached to the Request for Proposals and include
a system serving the entire City of Hopkins, Minnesota with a reasonable line
extension policy; flexibility to increase channel capacity; public, educational and
governmental access channels supported by the operator; reasonable rates; a mix,
level and quality of programs and services comparable to other systems and
1
17.
.
.
.
3341851]
customer services and maintenance plans to ensure the highest degree of service
to the subscriber. The Request for Proposals and Proposed Franchise Documents
provide further details of the desired system design and services to be offered.
F.
The criteria for evaluating the applications and priorities for selection are as
follows:
1. The completeness of applications, conformance to Request for Proposal,
and Proposed Franchise Documents;
2. The system design;
3. The programs and services offered initially and criteria for adding
programs and services;
4. The initial service area and the line extension policy;
5. The time for construction;
6. Customer service policies and system testing;
7. The legal, technical, and financial qualifications of the applicant; and
8.
The proposal for community services, including public, educational, and
governmental access.
H. Applications which meet the above criteria in the opinion of the City Council
shall be considered for a franchise.
1. The applicant(s) selected by the City Council will be required to accept the
Franchise Documents granted within thirty (30) days after adoption and will also
be required to reimburse the City of Hopkins for any and all expenses not covered
by the application fee, as provided for by Minnesota Statutes Section 238.081,
subd. 8.
1. Applicants are advised that the City of Hopkins is member of a joint powers
entity, the Southwest Suburban Cable Commission ("Commission") which will
provide input and recommendations to the City regarding this process. The
Commission consists of the following cities: Edina, Eden Prairie, Hopkins,
Minnetonka, and Richfield each of which has previously granted identical
franchises to KBL Cablesystems of the Southwest, Inc., d/b/a Time Warner.
K.
All questions concerning this request should be directed to Mr. Jim Genellie,
Assistant City Manager, City Hall, 1010 South First Street, Hopkins, Minnesota
55343, phone: 612-935-8474 or Mr. Brian T. Grogan, Moss & Barnett, P.A.,
4800 Norwest Center, 90 South Seventh Street, Minneapolis, Minnesota 55402-
4129, phone (612) 347-0340, the Commission's legal advisor regarding this
process.
2
18.
.
.
.
Date:
,2000
, City Clerk
Publish in:
on
, 2000 and
Publication required for each publication.
334185/1
3
2000. Affidavit of
19.
.
.
.
City of Hopkins, Minnesota
Timeline for Processing Request for a Cable Television Franchise
--subject to change in City's sole discretion--
May 24, 2000
Meeting of Southwest Suburban Cable Commission and any other interested
atties to review rocess, law, concerns
June 6, 2000
City considers ublication of Notice of Intent to Franchise
June - August
Commission begins negotiations regarding franchise terms with prospective
a licants.
June 14 and 21, 2000
City publishes Notice of Intent to Franchise once each week for two (2) successive
weeks in local newspaper (Notice also mailed directly to Time Warner, WOW,
Everest. Seren and other applicants)
July 14, 2000
Closing date for submission of Applications (must be at least 20 days from date of
first ublication)
Julv 14 - Au ust 2, 2000 Consideration of Franchise A lication
Au ust L 2000
Cit\' meets to call Public Hearin
Au ust 9,2000
Cit, ublishes Notice of Public Hearin - 10 to 14 days before conduct of hearin
Au ust 2,2000
ualifications of A licants
August 9. 2000
Southwest Suburban Cable Commission meets to consider Applicant's
qualifications and Moss & Barnett report - issue recommendation to Member
Cities
September 5, 2000
City conducts Public Hearing regarding Franchise Applications - considers
resolution re ardin ualifications.
Late September ~ Early
October
City Council considers award of Franchise to successful applicant(s) - must be at
least 7 days after Public Hearin - no time limit on when action must be taken.
October - November
Successful applicants accept franchise document and submit required closing
documentation - ically within 30 days of rant of franchise
.114144/[
16.
It)) K~ \".-" \l:.::!! ~!,/ I~' [-))
If iJ rh, It,. 1(." .'",,=,
.
WideOpenWest
April 10,2000
Jim (Jenellie
City of Hopkins
I () I 0 South First Street
Hopkins. MN 55343
Re: Request for Franchise By \VidcOpenWest Minncsota\ LLC
Dear Me Genellie:
.
On behalf of WidcOpenWesL I am wntmg to request the issuance to
WideOpenWest of a franchise by the City of Hopkins. This letter will confinn that it is
the intention of WideOpenWcst to provide commitments to and regulatory oversight by
the City of Hopkins equivalent to that governing the existing, incumbent franchisee in the
City of Hopkins. In that regard, we anticipatc a "'level playing field-' relationship.
Obviously, there will be some arcas, such as institutional network and access, where the
contribution of WideOpenWest should be equitably allocated on a subscriber proportion
basis.
Additionally, as our system dcsib'l1 will provide for considerable broadband
capabilities, WidcOpenWest anticipates providing services that are not made available by
many cable and telecommunications providers. For example, we will provide "open
access "
We appreciate your consideration of this request for the issuance of a franchise.
We \vill promptly respond to any requests for further information or proposed franchise
documents. If you have any I'urther questions, please do not hesitate to contact me.
Very truly yours,
\VIDE
c
Christopher Julian
Vice President Market Development
.
cc:
D. CraIg Martin, bq" General Counsel
.
.
.
LARKIN, HUFFMAN, DALY & LINDGREN, LTD.
ATTORNEYS AT LAW
Jane E, Bremer
DIR. DIAL (612) 896-3297
E.MAIL jbremer@lhdlcom
1500 NORWEST FINANCIAL CENTER
7900 XERXES AVENUE SOUTH
BLOOMINGTON, MINNESOTA 55431-1194
TELEPHONE (612) 835 3800
FAX (612) 896-3333
May 9, 2000
Mr. Jim Genellie
City of Hopkins
1010 South First Stred
Hopkins, MN 55343
VIA FEDERAL EXPRESS
Dear Mr. Uencllie:
On behalf of my client. Ever~st Connections Corporation ('"EveresC), I am pleased to inform you that
Everest is interested in providing broadband telecommunications services, including cable television,
telecommunications and high speed data service in the City of Hopkins_ Consequently, we are asking
that the City initiate the procedures required by Minnesota Statutes Section 238.081 for purposes of
granting a second cable television franchise in the City of Hopkins_ A copy of that statute is attached
for your reference.
Everest is very excited and very pleased to have the opportunity to serve the City of Hopkins. We will
be contacting you in the near future to alTange a meeting between representatives of the City and senior
Everest management. Until then, if you have any comments or questions or in can provide any
additional intormation, please do not hesitate to contact me.
Sincerely,
('f
Jane E. Bremer, fl.))"
LARKIN, HOFFMAN, DAL Y & LINDGREN, Ltd.
Enclosure
cc: Michael B. Roddy, Chief Operating Officer
I~:verest Connections Corporation
Brian T. Grogan, Esq.
11:i77,')') OJ