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CR 95-59 Cable Line Extension PlanMarch 29, 1995 Proposed Action Staff recommends that the Council approve the following motion: Move that the Hopkins City Council approve Resolution 95 -26 directing the Southwest Suburban Cable Commission to handle issues arising under the line extension policy. Adoption of this motion will allow the Southwest Suburban Cable Commission (SWSCC) to review the applicable line extension policy and engage in negotiations with Paragon Cable regarding the connection of a non - dwelling unit to cable service. Overview The Elks Lodge in Hopkins wants to be hooked up to cable. When they approached Paragon they were told that it would cost over $4,000 to be hooked up. This cost represents Paragon Cable's estimate for installation which would involve burying the cable. Staff believes that, while this estimate may be the actual cost of the installation, Paragon should be required to absorb these costs since this area should have been wired during the initial installation of cable in the city. Staff has had conversations with both Paragon Cable and the SWSCC administrators regarding this issue. Nothing has been resolved yet. Theresa Harris, of Fredrikson & Byron, is recommending that the city adopt a resolution authorizing the SWSCC to act for the city in this matter. Primary Issues to Consider What is the purpose of this resolution? The purpose of this resolution is to allow the SWSCC to represent the city. Staff is recommending that the Council approve this resolution. Any discussions concerning cable would have to involve Fredrikson & Byron, acting for the SWSCC, since they are the experts on the franchise. This resolution will allow Fredrikson & Byron to deal with Paragon Cable directly rather than have to work through city staff. The city would, of course, retain the right to approve any agreement. Supporting Information Resolution #95 -26 Letter from Theresa Harris J. *'s A. Genellie ity Clerk RESOLUTION REGARDING CABLE LINE EXTENSION POLICY Council Report 95 -059 Dear Jim: FREDRIKSON & BYRON, P.A. VIA FACSIMILE /935 -1834 Mr. Jim Genellie Assistant City Manager City of Hopkins 1010 First Street South Hopkins, MN 55343 Attorneys At Law Re: Providing Service to Elk Lodge March 24, 1995 1100 International Centre 900 Second Avenue South Minneapolis, MN 55402 -3397 (612) 347 -7000 FAX (612) 347 -7077 Direct Dial No. (612) 347 -7131 We have reviewed the franchise for the City of Hopkins regarding the line extension policy for non- dwelling buildings. If the density of dwelling units is equal to or exceeds 40 dwelling units per street mile or cable mile, there should be no additional cost contribution for connecting a non- dwelling unit beyond the normal installation fee. If the density does not exceed 40 dwelling units per mile, then additional fees may be requested by Paragon. The Elk Lodge has the option of accepting the cost which Paragon indicates or requesting that the City Council declare the area in which the building resides an "extended area." If the City Council passes such a resolution, a cost contribution formula will determine the amount the Elk Lodge must pay. As we reviewed the franchise, we noted that the franchise anticipated that the Commission would be the franchising body and would resolve issues regarding the line extension policy. The Cities, however, did not designate the Commission as the franchising authority and thus, the Commission technically does not have the power to handle this matter without express authority to do so from the Cities. While we will continue to review this policy, we suggest that you place a Resolution on the agenda of your City Council which authorizes the Southwest Suburban Cable Commission to handle this matter with Paragon Cable. Such a Resolution may avert a situation in which Paragon claims that the Commission and its staff should not handle this matter. Once such a Resolution is enacted, FREDRIKSON & BYRON, P.A. Attorneys At Law Mr. Jim Genellie March 24, 1995 Page 2 we will be happy to continue negotiations on this matter with Paragon Cable. We have enclosed a draft resolution for your convenience. If you have any questions regarding this procedure, please feel free to contact me at the above direct dial number. Enclosure TMH/cg /396701 Very truly yours, WHEREAS, the City of Hopkins, Minnesota (the "City "), received a request for assistance in resolving an issue regarding the cost of connection to cable service in the City; and WHEREAS, the cable franchise ordinance for the City states that issues regarding the line extension policy referenced in Article V, Section 2 must come before the City Council; and WHEREAS, the City Council believes it is appropriate for the Southwest Suburban Cable Commission to act as its agent and negotiate such policies with Paragon Cable, the current franchisee of the cable system. NOW, THEREFORE, the City Council for the City of Hopkins resolves that the Southwest Suburban Cable Commission is directed and authorized to review the applicable line extension policy and engage in negotiations with Paragon Cable, the current franchisee of the cable system regarding such line extension policy and the connection of a non - dwelling unit to cable service. A motion to approve the foregoing Resolution # , was made by Council member and duly seconded by Council member ATTEST: Clerk 396709 RESOLUTION OF THE CITY OF HOPKINS, MINNESOTA DIRECTING THE SOUTHWEST SUBURBAN CABLE COMMISSION TO HANDLE ISSUES ARISING UNDER THE LINE EXTENSION POLICY The following Council members voted in the affirmative: The following Council members voted in the negative: Passed and adopted this day of 1995. Mayor