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HomeMy WebLinkAbout4.F.5. Notice of intent to Consider Cable Franchise Application �� Consent Business 4. F. 5. SHAKOI EE TO: Mayor and City Council FROM: Kris Wilson, Acting City Administrator DATE: 04/07/2015 SUBJECT: Notice of Intent to Consider Cable Franchise Application (F) Action Sought The Council is asked to direct staff to submit the attached Notice of Intent for publication in the City's official paper of record and to release the attached Request for Proposals. Background The City of Shakopee and numerous other metro-area communities have been approached by CenturyLink in recent months with an interest in obtaining a franchise for the provision of cable television services. Shakopee currently has a cable franchise with Comcast, although this is in the process of being transferred to a new company. Regardless, the current franchise specifically states that the City has the right to issue additional franchises so long as the terms of other franchise agreements are not more favorable than the terms established with Comcast or its successor. This will likely be a significant point of contention as the process to consider a franchise for CenturyLink moves forward. CenturyLink has expressed a desire for a franchise agreement that does not carry the build-out requirements found in the existing franchise agreements of Shakopee and many other cities. Attorney Brian Grogan, of the law firm Moss & Barnett, has represented the City in recent telecommunications-related matters and has provided some preliminary advice on this issue as well. Mr. Grogan represents numerous metro-area cities that are facing the same request from CenturyLink and the same potential conflict with their existing cable franchise agreement. While the legal issues are not entirely clear at this time, he advises that the City consider publication of the attached notice now. This will get the process moving while the various parties continue to work through the legal issues. Budget Impact This specific action will result in only modest publication costs. As the process moves forward, additional and perhaps significant legal advice will be needed, resulting in further costs to the City. Requested Action The Council is asked to direct staff to submit the attached Notice of Intent for publication to the City's official paper of record and to release the attached Request for Proposals. Attachments: Notice of Intent Request for Proposals Ili NOTICE BY THE CITY OF SHAKOPEE, MINNESOTA OF ITS INTENT TO CONSIDER AN APPLICATION FOR A FRANCHISE Notice is hereby given that it is the intent of the City Council of the City of Shakopee, Minnesota, to consider applications for a franchise for the purpose of operating a cable communications system to serve the City of Shakopee, Minnesota. This notice is given in accordance with the requirements of Minn. Stat. § 238.081. The complete Request for Proposals/Official Application form is available upon request from the City of Shakopee, 129 Holmes Street South, Shakopee, MN 55379 or via email to jpeterson @ShakopeeMN.gov with the subject line"Request for Official Cable Communications Franchise RFP". A. The deadline for submitting applications is May 15, 2015. B. Applications shall be in writing, notarized, in a format consistent with the Request for Proposals, and sealed with one (1) paper and one (1) electronic copies enclosed. Applications shall be delivered to the attention of John Peterson, Telecommunications Coordinator, City of Shakopee, 129 Holmes Street South, Shakopee, MN 55379. Two (2) additional copies shall be simultaneously submitted to the City's outside legal counsel, Brian Grogan, Moss& Barnett at 150 South Fifth Street, Suite 1200, Minneapolis, Minnesota 55402. C. Pursuant to Minn. Stat. 238.081 subd. 8, applicants will be required to reimburse the City for all necessary costs of processing a cable communications franchise. Each application shall include an application fee of three hundred and fifty dollars ($350.00) in the form of a check made payable to the City of Shakopee, Minnesota. Each applicant shall also include an escrow amount of seven thousand five hundred dollars ($7,500) in the form of a check made payable to the City of Shakopee, Minnesota. Any unused portion of the escrow fee shall be returned to the Applicant and any additional fees required to process the application and franchise beyond the escrow fee shall be assessed to the Applicant. D. 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 7:00 p.m. on June 16, 2015. Each applicant will be given time to summarize its application. E. The Request for Proposals sets forth in detail the expectations of the City of Shakopee, Minnesota and the requirements of the content of the franchise proposal and are made in conformance to the requirements of Minn. Stat. § 238.081, subd. 4. F. The services to be offered are identified in the Request for Proposals and include a system providing public, educational and governmental access channels consistent with state law; a mix, level and quality of programs and services comparable to other systems in the region serving similar sized communities and customer services and maintenance plans to ensure quality service to the 2791548v1 subscriber. The Request for Proposals provides further details of the services to be offered. G. The criteria for evaluating the applications and priorities for selection are as follows: 1. The completeness of applications and conformance to Request for Proposals; 2. Customer service policies and system testing; 3. The legal, technical, and financial qualifications of the applicant; and 4. The proposal for community services, including public, educational, and governmental access in accordance with state law. H. Applications which meet the above criteria in the opinion of the City Council shall be considered for a franchise. I. The applicant(s) selected by the City Council will be required to accept the franchise documents granted within thirty (30) days after adoption. J. All questions concerning this request should be directed to John Peterson, Telecommunications Coordinator, City of Shakopee, 129 Holmes Street South, Shakopee, MN 55379; phone(952) 233-9310. Date: April 16, 2015 CITY OF SHAKOPEE, MINNESOTA By: Its: 2791548v1 REQUEST FOR PROPOSALS Official Application Form Applicants interested in submitting a proposal for a cable communications franchise shall submit the following information as required by Minnesota Statutes Section 238.081 (subd. 4)to the City of Shakopee, Minnesota ('City') on or before May 15, 2015. A. Plans for channel capacity, including both the total number of channels capable of being energized in the system and the number of channels to be energized immediately. B. A statement of the television and radio broadcast signals for which permission to carry will be requested from the Federal Communications Commission. C. A description of the proposed system design and planned operation, including at least the following items: 1. The general area for location of antenna and headend, if known; 2. The schedule for activating cable and two-way capacity; 3. The type of automated services to be provided; 4. The number of channels and services to be made available for access cable broadcasting; and 5. A schedule of charges for facilities and staff assistance for access cable broadcasting. D. Terms and conditions under which particular service is to be provided to governmental and educational entities. E. A schedule of proposed rates in relation to the services to be provided and a proposed policy regarding unusual or difficult connection of services. F. A time schedule for construction of the entire system with the time sequence for wiring the various parts of the area requested to be served. G. A statement indicating the applicant's qualifications and experience in the cable communications field, if any. H. An identification of the municipalities (including contact information for the municipal officials in each community) in which the applicant either owns or operates a cable communications system, directly or indirectly, or has outstanding franchises for which no system has been built. I. Plans for financing the proposed system, which must indicate every significant anticipated source of capital and significant limitations or conditions with respect to the availability of the indicated sources of capital. This information should include: 1. Current financial statements; 1 2791549v1 2. Proposed sources and uses of funds for the construction project; 3. Financial budgets for the next three (3) years; 4. Documentation regarding the commitment of funds; and 5. Any other information that applicant determines would be useful in evaluating its financial qualifications. J. A statement of ownership detailing the corporate organization of the applicant, if any, including the names and addresses of officers and directors and the number of shares held by each officer or director, and intercompany relationship, including the parent, subsidiary or affiliated company. K. A notation and explanation of omissions or other variations with respect to the requirements of the proposal. Substantive amendments may be made to a proposal after a proposal has been submitted only upon approval of the City and before the award of a franchise. All proposals must be notarized and must include responses to the above information requests, as well as the information requested in the Notice by the City of its Intent to Franchise a Cable Communications System, available from the City upon request. Applicants are advised that Comcast currently provides cable television service throughout the City of Shakopee, Minnesota. The City reserves its right to request additional information of any applicant at any time during this process. Any questions regarding this Request for Proposals may be directed in writing to John Peterson, Telecommunications Coordinator, City of Shakopee, 129 Holmes Street South, Shakopee, MN 55379; phone(952) 233-9310. 2 2791549v1