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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/04/2018 - RESOLUTION 2018-122 AUTHORIZING THE CITY MANAGER TAgenda Item 24 Item # 24 Page 1 AGENDA ITEM SUMMARY December 4, 2018 City Council STAFF Amanda King, Communications/Public Involvement Director Carson Hamlin, Cable Television Manager Ingrid Decker, Legal SUBJECT Resolution 2018-122 Authorizing the City Manager to Submit on the City’s Behalf Reply Comments to the Federal Communications Commission in the Matter of Implementation of Section 621(a)(1) of the Cable Communications Policy Act of 1984 as Amended by the Cable Television Consumer Protection and Competition Act of 1992. EXECUTIVE SUMMARY The purpose of this item is to authorize the City Manager to submit to the Federal Communications Commission (FCC) on the City’s behalf reply comments in support of comments recently submitted by the Colorado Communications and Utility Alliance (CCUA) and other parties. The CCUA comments oppose rules proposed in the FCC’s Second Further Notice of Proposed Rulemaking regarding cable-related franchise considerations that would limit local governments’ ability to negotiate with cable franchises for in-kind services in addition to franchise fees. The City Council’s Legislative Policy Agenda supports preserving local governments’ ability to negotiate for such services that serve the public interest. Comments will be provided by the December 14 deadline. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION • The FCC is considering adopting rules that would limit the consideration cities can require from cable franchisees like Comcast to just a franchise fee of no more than 5%. • The value of other in-kind benefits cities currently negotiate for and receive from cable franchisees, such as PEG channel capacity, connections to programming origination points, and complementary cable services to schools and other public buildings, would be deducted from the franchise fees to be paid. • The proposed rule could also be read to allow certain cable operators to construct and install facilities and equipment for non-cable services in the rights of way without any local regulation or compensation. • Many local governments are mobilizing to file comments and otherwise advocate against these proposed rules. Ken Fellman, Kissinger & Fellman, P.C. has partnered with the Washington (state) firm Ogden Murphy Wallace in filing comments and reply comments. Mr. Fellman has requested information from CCUA member entities, including the City, to help support their comments. City staff has been working to provide the information he requested. Once this work is completed, staff will work with Mr. Fellman to finalize reply comments to be submitted by the City Manager on the City’s behalf. CITY FINANCIAL IMPACTS Agenda Item 24 Item # 24 Page 2 Exact implications to the City are still being determined, but these proposed changes could result in partial or total loss of revenue if the value of benefits the City negotiates with cable television franchisees must be offset against franchise fees collected. Comcast has paid approximately $1.5 million in franchise fees and $236,000 in PEG fees annually. • Franchise fees are based off 5% of gross revenue • PEG fees are $0.75/cable subscriber -1- RESOLUTION 2018-122 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO SUBMIT ON THE CITY’S BEHALF REPLY COMMENTS TO THE FEDERAL COMMUNICATIONS COMMISSION IN THE MATTER OF IMPLEMENTATION OF SECTION 621(a)(1) OF THE CABLE COMMUNICATIONS POLICY ACT OF 1984 AS AMENDED BY THE CABLE TELEVISION CONSUMER PROTECTION AND COMPETITION ACT OF 1992 WHEREAS, on September 25, 2018, the Federal Communications Commission (FCC) issued a Second Further Notice of Proposed Rulemaking, (Docket No. 05-311, In the Matter of Implementation of Section 621(a)(1) of the Cable Communications Policy Act of 1984 as Amended by the Cable Television Consumer Protection and Competition Act of 1992) (the “FNPRM”); and WHEREAS, the FNPRM is intended to address two issues raised by a remand from the U.S. Court of Appeals for the Sixth Circuit regarding how local franchising authorities may regulate cable operators; and WHEREAS, through the FNPRM process the FCC is considering adopting rules that would limit the consideration for which local governments can negotiate with cable television franchisees operating in public rights-of-way to only a franchise fee of no more than 5%; and WHEREAS, under the proposed rules, other in-kind benefits that cities and counties have historically negotiated for with cable television companies, such as PEG channel capacity and complementary services to public facilities, would have to be offset against franchise fee revenue, which is only intended to act as a rental payment for use of the public rights-of-way; and WHEREAS, these limits and offsetting requirements could force local governments to choose between adequately funding local public access, educational and government programming, and maintaining the franchise fee contribution to their general funds; and WHEREAS, the City Council’s Legislative Policy Agenda supports maintaining local franchising authority to preserve local governments’ ability to negotiate in the public interest for cable channel space, institutional networks and public education and government programming; and WHEREAS, on November 14 the Colorado Communications and Utility Alliance (“CCUA”), of which the City is a member, along with several entities in Washington state, filed comments opposing the proposed FCC rules (“CCUA Comments”); and WHEREAS, the CCUA Comments are attached and incorporated herein as Exhibit “A”; and WHEREAS, comments on the FNPRM were due on November 14, 2018, and reply comments are due on December 14, 2018; and -2- WHEREAS, the City Council believes it is important that the City show its opposition to the FCC’s proposed rules, and its support for the position taken by the CCUA. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Manager is hereby authorized to work with City staff to prepare and submit reply comments to the FCC on the City’s behalf supporting the CCUA Comments and opposing the FCC’s proposed rules in the matter described above. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 4th day of December, A.D. 2018. _________________________________ Mayor ATTEST: _____________________________ City Clerk ATTACHMENT 1