HomeMy WebLinkAbout14.B. Letter to Congrassional Representatives on National Franchising
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City of Shakopee CONSENT
Memorandum
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: John Peterson, Telecommunications Coordinator
SUBJECT: Letter to Congressional Representatives on National Franchising
DATE: September 13th 2005
Introduction
The Telecommunications Advisory Commission recommends that the City contact its
Congressional delegation to express opposition to several pieces of legislation currently
under construction. Specifically Senate Bill 1504 which woulq eliminate local
government's authority to enter into franchise agreements.
Background
Without local franchise agreements this bill would deprive local governments of the
ability to ensure that quality services are available throughout the community and deny
consumers effective means of redress. Additionally, it would eliminate revenue that
cities currently use to provide public, educational and government programming;
maintain institutional networks and invest in new technology that serves our citizens.
Please read attached letter for full information and reaction towards current legislative
bill S. 1504.
Action Requested
Approve the attached letter to be signed by the Mayor and sent to Senators Coleman and
Dayton as well as Representative Kline, opposing the Broadband Investment and
Consumer Choice Act (S. 1504).
I
~ .
SHAKOPEE
September 20, 2005
Senator Mark Dayton
SR-123, Russell Office Bldg.
Washington, DC 20510
Re: Opposition to the "Broadband Investment and Consumer Choice Act" (S. 1504)
Dear Senator Dayton:
The City of Shakopee urges you to oppose the pending Broadband Investment and
Consumer Choice Act (S. 1504). As proposed, this bill would work against the provision
of quality telecommunications services to Shakopee's residents and local businesses.
Although the legislation is being presented as a means of encouraging investment and
competition and promoting affordable service to all, we do not believe that will be the
outcome if this bill becomes law. Instead, it would deprive local governments ofthe
ability to ensure that quality services are available throughout the community and deny
consumers effective means of redress. Additionally, it would eliminate revenue that
cities currently use to provide public, educational and government programming;
maintain institutional networks and invest in new technology that serves our citizens.
S. 1504 contains the following harmful provisions:
. Eliminates the 5% cable franchise fee and replaces it with a fee that must be both
"reasonable" and limited to rights-of-way management costs and also not exceed
5%. It also allows the cable industry to petition the FCC to reduce the fee still
further - this results in a huge subsidy to industry, paid for out of local
government budgets.
. Eliminates all Public Education and Government Access "PEG" support - capital
and operating grants for PEG are eliminated, which will greatly threaten the
continued viability of PEG programming. Without this support, the only way
Shakopee could continue offering public access services would be to increase
taxes on our local residents.
. Moves all customer service issues to the FCC, to be enforced only by the State.
Currently, residents can and do contact the City for assistance in resolving
customer service issues. Ifthis bill were to become law, the city would have no
ability to resolve issues on behalf of local residents. Given the strain on the State
of Minnesota's financial resources, it will leave many customers without an
effective recourse to address gp~Yll.nges.
COMMUNITY PRIDE SINCE 1857
129 Holmes Street South. Shakopee, Minnesota' 55379-1351 . 952-233-9300 . FAX 952-233-3801 . www.ci.shakopee.mn.us
. Preempts any state or local law that is not generally applicable to all businesses,
therefore threatening electric code and other safety obligations specifically
pertaining to certain classes of business such as utilities or rights-of-way (ROW)
users (such as requiring utilities to underground their facilities or ensuring electric
code compliance).
. Prohibits the imposition of any fee for issuance of ROW construction permits and
requires local governments to act on construction permits in a timely manner as
determined by the FCC or federal courts. Like most cities, Shakopee uses permit
fees to offset the costs of reviewing, issuing and enforcing permit conditions and
responds to permit applications as efficiently as possible based on locally-
determined levels of staffing and service. The costs of monitoring ROW activity
will be shifted once again to local property taxpayers, in effect subsidizing the
for-profit cable company.
While some degree of reform to our existing telecommunications laws may be in order to
better address the changes and convergence of new and ever-changing technology, such
modifications should reflect the input of state and locally elected officials and the needs
of our residents and businesses. S. 1504 disproportionately benefits private industry at
the expense ofthose local needs and interests.
The City of Shakopee utilizes its current franchise authority in a responsible manner
intended to serve our residents, support continued economic development and protect
significant taxpayer investments in public infrastructure.
For the reasons outlines above, the City of Shako pee asks that you oppose S. 1504.
If you have any questions or would like to discuss the impacts ofthis legislation further,
please feel free to contact me at (952) 233 - 9300.
Thank you for your time and attention.
Sincerely,
John J. Schmitt
Mayor
City of Shakopee, Minnesota