HomeMy WebLinkAbout14.B. Time Warner Franchise Update-SPUC Pole Attachment Agreement
/113,
City of Shakopee
Memorandum
TO: Mayor & City Council
Mark McNeill, City Administrator
Telecommunications Commission
FROM: Tracy Schaefer, Assistant to the Administrator
SUBJECT: Time Warner Franchise Update - SPUC Pole Attachment Agreement
DATE: March I, 2004
Introduction
To help complete the IS-year franchise, which expired on February 26, 2003, with Time
Warner, City Council is asked to recommend that SPUC and Time Warner finalize the
SPUC pole attachment agreement.
Background
Legal counsel Bob Vose and I met with Time Warner representatives on February 26 to
discuss the remaining issues of the franchise renewal agreement. After over three years
of negotiations, the one remaining outstanding issue for which staff cannot reach
resolution is the SPUC pole attachment rate and agreement.
Since SPUC is a separate operating body from the City, staff does not have the authority
to negotiate the SPUC pole attachment agreement. With that in mind, city staff has
always informed Time Warner to continue to work with SPUc. Time Warner Vice
President of Government Relations, Kim Roden, has outlined in her attached memo dated
February 27,2004 why Time Warner must have the two agreements settled at the "same
time." She has stated to staff that it is a matter of doing business in the city of Shakopee.
She states if SPUC is able to continually increase its pole attachments rates at will, then
Time Warner is unable to offer many aspects of the franchise that city staff has
negotiated. An alternate would be to impose an additional increase on Shakopee cable
subscribers to cover the increase in pole costs. Time Warner has informed city staff that a
formal franchise renewal process may be invoked, which could last up to three years and
cost as much as $200,000 in legal and consulting fees as well as city staff time.
A few of the city cable franchise items that have been tentatively negotiated with Time
Warner include:
1) Cable to Sun Path and Red Oak Elementary Schools. Currently these schools
do not have cable and installation has been held up until the agreement is
signed.
2) Cable at the new library and police department.
3) 2 strands of fiber to connect Fire Station No. 51 to the city's INET. This will
allow the fire station to be hooked up to the INET, the new Voice Over
Internet Protocol phone network and will eliminate some monthly costs. It
will also be able to serve as a backup location for emergency management, but
it is not ideal under its current condition.
4) $.40/month/customer PEG fee to fund taping city and SPUC meetings and the
public access studio operation.
5) Continuing the 5% franchise fee, which has allowed the city to expand its
telecommunications goals and not rely on general funds.
6) Free monthly cable service to city buildings, schools, county facilities and
SPUC.
Staff is confident that ifthe SPUC pole attachment agreement can be resolved, a 15-year
franchise agreement will be presented to the Telecommunications Commission and City
Council for adoption.
Note that the FCC does not regulate SPUC's pole attachment rates like Xcel or NSP,
because it is a public body. Since cities have franchise agreements, most public utilities
would fall under the city's jurisdiction to regulate and negotiate the packaged deal. The
FCC also uses a formula to determine what costs need to be captured for a pole
attachment fee.
Other Discussion
SPUC Chairman, Mark Miller, requested the past 10 years of basic cable prices from TW
to be discussed at the SPUC meeting on Monday March 1. I have also included that
information as part of your packet as well as some ofthe previous SPUC meeting
information and SPUC 745 Resolution setting the $5.26 pole rate.
Action Requested
City Council is asked to recommend that SPUC and Time Warner Cable develop a
mechanism to identify periodic pole attachment rate adjustments, for the duration of the
Shakopee 15-year franchise agreement, which are identified and suitable to both Time
Warner and Shakopee Public Utilities Commission.
RESOLUTION 745
A RESOLUTION MODIFYING POLE ATTACHMENT RATES
PURSUANT TO THE POLE ATTACHMENT AGREEMENT
WHEREAS, the Shakopee Public Utilities Commission ("Utilities Commission")
authorized the local cable operator to make attachments to its poles by agreement dated
September 23, 1982 ("Agreement");
WHEREAS, since 1982, ownership and/or control of the cable system has been
transferred on several occasions and the system is currently operated by Amzak Cable Midwest,
Inc. d/b/a Time Warner Cable ("Time Warner");
WHEREAS, the Agreement provides that the Utilities Commission may increase pole
attachment rates;
WHEREAS, based on a review the pole attachment rates charged by other Minnesota
municipal utilities, the Utilities Commission determined to increase the pole attachment rate to
$10 per pole, per year effective March 1,2004;
WHEREAS, the Utilities Commission gave Time Warner six (6) months' written notice
of such rate increase in accordance with the Agreement;
WHEREAS, Time Warner raised concerns about the rate increase and subsequently
provided information concerning pole attachment rates, including information concerning rates
imposed in other communities;
WHEREAS, the Utilities Commission has considered the rate information provided by
Time Warner and additional information obtained by its staff;
WHEREAS, the Utilities Commission is aware that the cable franchise has expired and
that Time Warner is involved in ongoing cable franchise renewal negotiations with the City of
Shakopee;
WHEREAS, the Utilities Commission has been advised by both Time Warner and the
Shakopee Cable TV Commission that resolving concerns about the pole attachment rate will
allow Time Warner to promptly reach a cable franchise renewal agreement with the City of
Shakopee;
NOW THEREFORE, BE IT RESOLVED by the Shakopee Public Utilities Commission,
in duly assembled meeting, that its previous rate adjustment to $10.00 per pole attachment, per
year effective March 1,2004 is hereby modified as provided below, provided that Time Warner
has executed a franchise agreement with the City of Shako pee by March 1,2004.
BE IT FURTHER RESOLVED, that the pole attachment rate pursuant to the Agreement
effective March 1, 2004 shall be set at $5.26 per pole attachment, per year provided that Time
Warner has executed a franchise agreement with the City of Shako pee by March 1,2004.
BE IT FURTHER RESOLVED, that the pole attachment rate of$IO.OO per pole
attachment, per year will remain in effect should Time Warner not execute a franchise agreement
with the City of Shakopee by March 1, 2004.
BE IT FURTHER RESOLVED, that all acts necessary to carry out the terms and purpose
_ .. J1. ~.. ~ ~ _. _ 1 A ~ _.+ _.. _ 1. _ _. _1~ _ J 1_ _ .. ~ _.1
Time Warner Basic Rate Cable Price Increases - 2004 - 1995*
Year Basic Rate ***
2004 $12.50
2003 $11.62
2002 $12.20
2001 $12.02
2000** $7.62
1999 $7.29
1998 $7.29
1997 $7.05
1996 $6.74
1995 $7.05
* Several cable companies have served Shakopee residents, 1996/97 is when
Time Warner took over in name as the Shakopee cable provider.
** FCC mandated TW, as part of the Social Contract, to upgrade its facilities in
Shakopee. FCC allowed the cable companies to increase prices to cover such
costs. This is why the price increased from $7.62 - $12.02. Cable prices/industry
were deregulated in 1996.
*** The rate DOES NOT include the AO/customer PEG fee that is 100% passed
onto the City of Shakopee. This was negotiated in 1996/97.
:#-5
SHAKOPEE
November 17,2003
Lou VanHout
Shakopee Public Utilities Commissioners
RE: Pole Attachment Agreement
Dear SPUC Commissioners and Mr. VanHout:
As the Telecommunications Commission for the City of Shakopee, it is our responsibility
to insure that a new franchise is negotiated with Time Warner Cable. The existing
franchise expired on February 26, 2003.
One ofthe last items holding this up is resolution of what rates will be charged for the
attachment of Time Warner Cable on SPUC poles. We are very aware that Time Warner
has, in many locations, attached these cables to existing SPUC poles without having a
current price negotiated. We further understand that the old franchise allows for SPUC to
establish rates, and to modify them from time to time, without the need to have that price
be agreed to by Time Wamer.
This has been the source of delay for the negotiating process. While we understand the
desire of SPUC to maximize its revenues, there is some concern that we have that
Shakopee cable subscribers (and, in almost all cases, also SPUC customers) maybe
disadvantaged by this inability to reach closure on the subject, and, therefore, get a
franchise renewal.
Try as we might, we have not been able to convenience Time Warner representatives that
this is an issue separate from the City franchise negotiations.
We understand your position, and the desire to maximize the revenues from pole
attachment rental from Time Warner. Actually, the amount involved is relatively small-
we estimate perhaps up to $8,000. However, this is an issue for which Time Warner is
prepared to contest, and appears to be ready to spend money many times over that
amount in legal fees so as to reach a conclusion that they feel is equitable - agreeing to a
fee which is significantly above the market - we understand to be in the $3.50 to $5.23
range - would set a precedent which would disadvantage Time Warner nationally in its
negotiations with other cities.
COMMUNITY PRIDE SINCE 1857
129 Holmes Street South' Shakopee, Minnesota' 55379-1351 0952-233-3800' fAX 952-233-380 I . www,cLshakopee,mn,l1s
Therefore, as Telecommunications Commission, we urge you to sit with Time Warner,
and negotiate an amount which is reasonable - for both Time Warner and for SPUC.
Without this, we are concerned that Shakopee cable customers will pay significantly
more by funding a legal battle which might be avoided.
Sincerely,
~~
Michael Guncheon
Telecommunications Commission Chair
02/26/04 18:41 FAX 612 521 7626 TIME WARNER MN ~002
Kim M. Roden Vice President
801 Plymouth Avenue North of Pl/hliL' AfTail;\'
Minneapolis, Minnesota 55411 and Programming
612/522-5200
FA X 612/527-7626
'@>TIMEWARNER
CABLE
February 27, 2004 VIA FAX ONLY
The Honorable Mayor &
Members of the City Council
City of Shakopee
129 Holmes Street
Shakopee, MN 55379-1328
Dear Mayor and Members of the City Council:
I am writing at the request of Ms. Tracy Schaefer regarding the
pending renewal of our franchise to operate a cable television system
in Shakopee and how the Shakopee Public utilities Commission's
(SPUC) pole attachment fees charged to Time Warner Cable impact the
renewal.
As a matter of background, we understand that SPUC has
proposed a pole attachment fee of $5.26 per pole, per year. We
understand that rate will be applicable for some indefinite period of
time. It is not clear, however, when that fee will increase or what the
basis will be for any increase in that fee. Quite simply, we can not
leave ourselves in a position where SPUC could arbitrarily double or
triple that rate. This is true especially when we have no alternative to
using the poles of SPUC other than placing our system underground.
We believe the prospect of placing our system underground (and all of
. the associated turmoil) would be unacceptable to all parties.
Consequently, it is important that there be a clear understanding of
whether this fee will increase in the future and, if so, how such future
adjustments will be determined.
We certainly understand that businesses see increases in their
costs. We do not expect that the rate will be frozen at a $5.26
indefinitely. We do expect, however, to understand when and how
A Time W:U'ller lnt:. Cnmp:UlY
02126/04 18:41 FAX 612 521 7626 TIME WARNER MN ~OO3
rates will be adjusted in the future. Options for future adjustment
include: adjusting rates to correspond with those of Xcel Energy's, the
largest pole owner in Minnesota; adjusting rates to correspond to the
FCC pole rental rate formula for investor-owned utilities; or adjusting
rates based upon some identified inflation factor.
I have attached for your review and information a schedule
reflecting pole attachment rates that we pay to other municipal entities
across the country. Due to the number of communities that we serve
and the decentralized nature of Time Warner Cable, I can not
represent that the attached list is 1000/0 complete. It is nevertheless
representative of rates across the country.
. Finally, I understand that there may be questions as to why the
pole attachment rate is tied to, or related to, the pending franchise
renewal discussions. As you know, we have a proposal pending before
the City staff that we believe to be quite generous and, in fact, beyond
what the City could ever justify or require in a "formal" renewal
proceeding. If we are, however, going to enter into a franchise
agreement and obligate ourselves to certain obligations that we
consider to be generous (and more than the City could ever require of
us), then we must have a fair and reasonable business environment to
operate in. This certainly includes fair and reasonable pole attachment
fees. If, on the other hand, we are to be left with the prospect of
unlimited pole attachment fee increases, then we must reconsider our
willingness to enter into a franchise agreement with generous
provisions for the City.
~. ~
m~de
Attachments
02/26/04 18:42 FAX 612 521 7626 TIME WARNER MN 141 004
.
.'Glii .'vl. Rodell Vicr! PresideJ1(
8W PI.WlOlllh AI'r!I1lIC:' SONIl (If Public AHail:\' :
.\.fiI1llc:apolis. l'vfiflfl('SO/ft 55-1lJ ami P/'()graml1lil1.~
6l21S]].5200
FAX 612/521.7626
~ TIME WARNER d.
CABLE
February 9, 2004 Via Certified Mail/Return Receipt Requested
Mr. Lou Van Hout
Administrator
Shakopee Public Utilities Commission
1030 4th Ave. East
Shakopee, Minnesota 55379
Dear Mr. Van Hout:
I am writing at the advice of Tracy Schaefer regarding the Shakopee Public
Utilities Commission's (SPUC) pole attachment fees charged to Time Warner
Cable.
It is our understanding that the proposed pole attachment fee shall be $5.26 per
pole, per year. We understand that rate will be applicable for some indefinite
period of time. We believe it is important to all parties that there be a clear
understanding of whether this fee will increase in the future and, if so, how such
future adjustments will be determined.
We would recommend to your Commission that all parties understand some
agreed upon method as we complete the cable franchise renewal process in the
City of Shakopee. Options we wouldrecorhiTIEmd include: adjusting pole rental
rates to correspond with the annual CPl adjustment or; adjusting rates in
conjunction with those of Xcel Energy's, the largest pole owner in Minnesota; or
adjusting rates to correspond with the FCC pole rental rate formula for investor-
owned utilities.
We would very much like to resolve the pending pole attachment fee matter so
that we can conclude the franchise renewal. To that end, I will call you in the next
several days to discuss how best to conclude this process. If it would be helpful,
we would be willing to attend an upcoming SPUC meeting to further discuss our
proposals.
Very truly yours, tIj-~
~~b ..
Kim Roden .. u
A Time W"mer Inc. Olnlfl'ln)'
02/26/04 18:42 FAX 612 521 7626 TIME WARNER MN ~005
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CABLE -
November 26, 2003
Mr. Lou Van Hout
Administrator
Shakopee Public Utilities (SPUC)
1030 4th Ave. East
Shakopee,~.s5379
Dear Lou,:
Attached please find the information you requested that Time Warner provide at the
November 17, 2003 meeting of the Shakopee Public Utilities Commission. As you may
recall, SPUC requested that we provide certain information within two weeks. Below,
you will find our responses to those requests as well as additional information for your
review and consideration.
1. The Pole Attachment Act directed the FCC to establish a formula for determining
a fair and reasonable pole attachment rate for investor-oWned utilities. The formula
adopted by the FCC charges cable operators the percentage ofthe entire annual cost
of owning the pole represented by the proportion ofthe "useable space" on the pole.
The annual cost of owning the pole includes amortizing the investment in the pole, as
well as the cost of maintenance, administrative and general expenses, taxes and a rate
ofretum on the investment. Based on this formula, pole rental rates for SPUC should
be $3.85. While We acknowledge that SPUCis not subject to this formula, it is
important to note that the U.S. Supreme Court has upheld the reasonableness ofthe
FCC's pole attachment rate methodology and concluded that the rates calculated
under this formula are fair and reasonable. The $10.00 rate proposed by SPUC is
almost triple that rate that would be considered fair and reasonable under the FCC
fonnula.
2. You requested a survey sample of20-25 communities in which Time Warner is
attached tQ municipal poles and what the pole rates are in those communities. Ideally,
these communities would include about the same number of poles that we are
attached to in Shakopee (approximately 1,450). We have prepared the enclosed chart,
(see Attachment A) which sets forth the rates and number of poles for substantially
'. all of the municipal poles used by Time Warner across the country. Due to time
constraints, we carinot represent that the Attachment A is 100% complete,
3. You requested a corrected pole rental rate that we pay to relevant communities as
listed in a letter Bob Vose, SPUC Attorney, provided to your office dated April 18,
... : ,'/: \\.:!'Io; I;:. (', .1' :'.1';
02/26/04 18: 42 FAX 612 521 7626 TIME WARNER MN ~ 006
2002. (The only two pole owners in Bob Vose's letter that Time Warner has
attachments on are Qwest and Xcel. The rates we pay Qwest are $2.75 per pole; for
Xcel $5.26 per pole).
4. You requested a listing of MiImesota municipal pole rental rates that you provided
to Time Warner Cable from a survey conducted by the Mirmesota Municipal Utilities
Association. See Attachment B. This aggregate'data compiled six different ways
indicates that pole rental rates average approximately $3.76 on the low end and $5.86
on the high end. This data would appear to support Time Warner's recommended
pole rental rate to mirror that ofXcel's.
As you may recall, it was indicated at your November 17, 2003 meeting that if SPUC
obtained this information within two weeks, you would put this item on the agenda for
your January 5,2004 meeting.
~ .
As I indicated in my November 18. 2003 letter, I would like to suggest, alternatively, that
we put this item on your December 8lh agenda instead as I will be out oftown on January
5,2004. Since we have provided the information listed above by December 1, it gives
your Commission seven days to review it. This would seem an adequate time to review
the information, particularly since the members already have the majority of the
information that was provided November17th at their meeting.
In addition, I trust you have provided your Commission members.with our October 28,
2003 letter whereby we outlined our proposal to tie SPUC'po]e rental rates to the rates we
pay Xcel. Please advise me if the SPUC members have not received copies ofthat letter,
as I would be happy to provide copies for them. Please advise me if it will be possible to
hear this matter on December 8, as it will allow all parties to move forward with
resolution of this issue as well as allow the City and Time Warner Cable to finalize the
renewal of our franchise.
Another important issue was raised at the meeting on November 17,2003. It was
indicated, "SPUC and Time Warner Cable have been negotiating for years to resolve the
pole rate agreement.>> Both you and your Commission chair appeared to suggest during
the meeting that there have been ongoing discussions between Time Warner and SPUC.
As you know, upon returning to my office Tuesday morning, November 18, I contacted
several of my colleagues to determine who has been in contact with you and the dates of
those meetings as well as the agendas. So far, none of my colleagues report meeting with
any SPUC rqembers or employees to discuss pole rates or a new agreement.
In order to continue to build good working relationships with SPUC as well as the City of
Shakopee, I would. again, request that within three business days you provide me with
the names, dates and topics discussed at any meetings that have been held with SPUC and
'- Time Warner Cable: The only meeting I am aware of that has taken place between SPUC
and Time Wamer Cable was our meeting, which occurred on October 31, 2003 and was
arranged by Tracy Schaefer. My goal is to insure that we have provided appropriate
02/26/04 18:43 FAX 612 521 7626 TIME WARNER MN ~007
, ,
follow up actions to any unresolved SPUC matters. I look forward to receiving this
information no later than December 1, 2003.
I also look forward to your written confiI1l!ation that SPUC now has the items you
wished for Time Warner to provide as listed as 1. -3. on page one of this letter and that
we can move forward with continuing to discuss this matter at your December 8. 2003
SPUC meeting. I look forward to a productive resolution of remaining issues.
.
,0 cOL,
Attac~ents
(cc:) SPUC Members
Tracy Schaefer, City of Shakopee
Mark McNeill, City of Shakopee
Gary Matz, Time Wamer Legal Dept.
Mike Munley. Division President
,
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TWC Sampling
Municipal Pole Owners and Rent Information
00
0 # Poles Billed # Poles Billed # Poles Billed 1# Poles Billed
0 Division Pole Owner 2001 2002 2003
~ Annual Annual Annual for 2000 for 2001 for 2002 for 2003
Rates Rates Rates
~~~~~TI~::=~=~=~~~ .~~~~...J:~:::~=:~;:~ ~~~~~:'~:'~':i~~~~~'.~~"':.~~:=~.:,"~;~_~~":~,~.c~ ~:.~~=~~.~:'.~:::.2':'::.2
AUSTIN
City 1 $ 6.11 $ 7.23 $ 7.36 68,635 69,319 61,409 61.679
Citv2 $ 9.56 $ 14.45 $ 12.96 9,000 9,600 9,600
Citv3 $ 3.25 $ 3.25 $ 3,25 $ 3.25 3,202 3,522 4,801 4.801
Cilv4 , $ 2.00 $ 2.00 $ 2.00 $ 2.00 1955 1,955 1,955 1,955
Citv5 $ 5.00 $ 5.00 $ 5,00 $ 5.00 1,215 1,215 1,215 1,215
Citv6 $ 4.00 $ 4.00 $ 4.00 $ 4.00 6004 6,056 6,143 6,143
City 7 $ 3.00 $ 3.00 $ 3.00 $ 3.00 1,178 1,178 1,178 1,178
Average Annual Rate I # of Poles Billed $ 3.45 $ 4.70 $ 5.56 $ 5.37 82,189 92,245 86,301 86,571
:~===,~~~~-:~~=-~~.:...~~~--=~:~.=~~-::--=~.=-.::::.:.~:~---:.~. =~~~~
BINGHAMTON
City 1 $ 8.97 $ 6.97 $ 8.97 $ 8.97 227 227 227 227
Citv2 $ 5.00 $ 5.00 $ 5,00 $ 5.00 76 76 76 76
- $
~ City 3 $ 10.00 $ 10,00 10.00 $ 10,00 47 47 47 47
- $ 39~
C.tv4 5.18 $ 5.00 $ 10.00 $ 10.00 399 413 460
~ Citv5 $ 1.11 $ 1.10 5,066 5,357
~ C~v6 $ 4.61 $ 4.61 425 425
i:l:= Avera e Annual Rate I # of Poles Billed $ 7.29 $ 7.24 $ 6.62 $ 6.61 749 749 6,254 6,592
~ CHARLOTTE
......
Eo< C'v 1 $ 3.00 $ 3.00 $ 3.00 $ 3.00 338 549 549 492
C'ty2 $ 3.00 $ 3.00 $ 3.00 $ 3.00 724 728 731 731
Cilv3 $ 5.16 $ 5.16 $ 5.16 $ 5.16 8,430 8,445 8,445 8,445
Citv4 $ 2.62 $ 2.62 $ 2.62 $ 2.62 106 106 106 106
Citv5 $ ,3.00 $ 3.00 $ 3.00 $ 3.00 1,800 2,821 2.821 2,882
.CD Citv6 $ '3.00 $ 3.00 $ 3.00 $ 3,00 1,894 1,896 1,896 1,914
IN City 7 $ 5.00 $ 5.00 $ 5.00 $ 5,00 5,495 5,522 5,558 5,617
CD
'I' C~v8 $ 3.00 $ 3.00 $ 3.00 $ 3.00 1,571 1,594 1,594 1,594
.-I Citv9 $ 5.00 $ 5.00 $ 5.00 $ 5.50 9,517 9,621 9,621 11,229
,IN
It) City 10 $ 4.00 $ 4.00 $ 4.00 $ 4.00 2,278 2,278 2,278 2,278
,IN
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TWC Sampling
Municipal Pole Owners and Rent Information
0)
0
0 Division Pole Owner 2002 2003 # Poles Billed # Poles Billed # Poles Billed # Poles Billed
~ Annual Annual for 2000 for 2001 for 2002 for 2003
Rates Rates
:.<~~~~:~~:~~~J-~~d;~~:~,!~ ~~~~_ .~ -!~:~l~ :~_~~__.=_~~~.':'~-:~ ~~ ~_' '~~L::" ~- ~ ,'-.~ :<~ ~~~::,J-~ ~-r~=;~~~Cf:~~~ ,~:~:J:~ ,>~,:_'::,~:~~ ~~.::~
CINCINNATI
ICitv 1 $ 4,00 6.273
ICitv2 $ 10.00 m
Avera e Annual Rate I # of Poles Billed $ 7.00 7.050 0
"
COLUMBUS
Citv1 $ 4.00 $ 4.00 $ 4.00 $ 4.00 1,430 1,430 1,430 1,430
Cilv2 $ 4.00 $ 4.00 $ 4.00 $ 4,00 2,410 2,410 2,410 2,410
Citv3 $ 2.50 $ 2.50 $ 2.50 $ 2.50 2156 2,156 2,156 2.156
DESERT CITIES
! ICit:v1 $ . 5.00 I $ 5.00 I I 2.187 2,187
~
ex: EASTERN CAROLINA .
~ I City 1 2.50 I 2.50 2.50 I 2.50 I 347 3471 347 347
Et:
.~
...... GREENSBORO · .
E-t City 1 $ 5.00 $ 5.00 $ 5.00 $ 5.00 9,158 9,202 9.272 9,369
Citv2 $ 5.50 $ 5.50 $ 5.50 $ 5.50 7,575 7,583 7,583 7,594
MEMPHIS .
CD Citv1 $ 5.00 $ 5,00 $ 5.00 $ 5.00 1.421 1.497 1.497 1,497
"-l Citv2 $ 5.50 $ 5.50 $ 5.50 $ 7.53 253 253 253 253
CD
r-- Citv3 $ 8.45 $ ,9.30 $ 9.30 $ 10.07 72,600 72.724 73.045 80,971
..-t Citv4 $ 8.45 $ 8.45 $ 8.45 $ 8.45 6,950 6,950 6.950 6,950
"-l
IQ Citv5 $ 4.30 $ 4.30 $ 4.30 $ 4.30 3,541 3,541 3,541 3,541
"-l
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CD
~ MINNEAPOLIS
Citv1 $ 5.00 $ 5.00 $ 5.00 554 554 554
~ Citv2 $ 3.75 $ 3.75 $ .3.75 200 200 200
~
.. Citv3 $ 3.74 $ 3.74 $ .3.74 1.044 1,044 1,044
eo
..-t Cilv4 $ 3.50 $ 3.50 $ 3,50 1.454 1 ,454 1,454
~ AveraQe Annual Rate I # of Poles Billed $ 4.00 $ 4.00 $ 4,00 3.252 3.252 3,252
0
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0
,
TWe Sampling
Municipal Pole Owners and Rent Information
0
.-t
0 Division Pole Owner 2001 2002 2003 # Poles Billed # Poles Billed # Poles BlIIed # Poles Billed
~ Annual Annual Annual for 2000 for 2001 for 2002 tor 2DD3
Rates Rates Rates
f~~~lIII!IllIIIl!.\~r'~:~'::IU\lii'--l/lll""_:~ --: '"'~-:-~j~~=::~,:""::~~;,~;~. -~..==.::~,= ',_~~,~~: _;~_'-~; ,':". ~=..~~, __=-.:~ ~,~ ".: ':~: ~~=,~'- '~,=~_..' ...:.::::=.=-=:; ::~."~ ~ ._::"'~~~:::'~-=~_~=~~;J
NEBRASKA.
Citv 1 $ 4.50 $ 4.50 - 431 - 431
City 2 $ 4.50 $ 4.50 - 625 - 625
Citv3 $ 3.50 $ 3.50 ; - . 1,314 1,314
Ci v4 $ 4.50 $ 4.50 - - 1,198 1,198
Ci v5 $ 4.50 $ 4.50 - . 534 534
C' v6 $. 2.50 $ 2.50 - . 383 383
Citv7 $ 5.00 $ 5.00 - 756 - 770
City 8 $ 5.50 . - 474 0
Cily9 $ 3.50 $ 3.50 . - 3.801 3,600
Citv 10 $ 4.50 - . - 642
City 11 $ 9.00 $ 9.60 - - 14,960 15.039
City 12 $ 4.50 $ 4.50 . - 535 559
~ Avera e Annual Rate I # of Pates Billed $ 4,67 $ 4.69 $ 4.65 - 1,812 23,199 25.095
~ NORTHEAST OHIO
~ City 1 $ 4.00 $ 4.00 $ 4.00 $ 4.00 - 2585 2585 2585
~ City 2 $ 4.00 $ 4.00 $ 4.00 $ 4.00 3226 3226 3270 3270
5ril City 3 $ 2.50 $ 2.50 $ 2.50 $ 2.50 310 310 310 310
Citv4 $ 3.52 $ . 3.52 $ 3.52 $ 3,52 1952 1952 1952 1952'
..... Citv5 $ 4.00 $ 4,00 $
Eo< 4.00 $ 4,00 546 546 546 546
Citv6 $ 6.63 $ . 6.75 $ 6,87 $ 6.87 2842 2842 2842 2842
Avera e Annual Rate I # of Poles Billed $ 4.11 $ 4.13 $ 4,15 $ 4.15 8.876 11,461 11.505 11.505
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C\l Updaled as of 11/26103 Page 3
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TWC Sampling
Municipal Pole Owners and Rent Information
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o Division Pole Owner 2000 2001 2002 2003 # Poles Billed # Poles Billed # Poles Billed # Poles Billed
~ Annual Annual Annual Annual for 2000 for 2001 for 2002 for 2003
Rates Rates Rates Rates
, . .',. - . .
RALEIGH
City 1 $ 5.00 $ 5.00 $ 5.00 $ 5.00 453 453 453 453
City 2 $ 3.50 $ 3.50 $ 3.50 $ 3.50 2,609 2,609 2,609 2.609
City 3 $ 3.00 $ 3.00 $ 3.00 $ 3.00 1.0BO 1,OBO 1,OBO 1.080
City 4 $ 3.00 $ 3.00 $ 3,00 $ 3.00 885 885 885 885
City 5 $ 1.50 $ 1.50 $ 1.50 $ 1.50 601 601 601 601
City 6 $ 3.00 $ 3.00 $ 3.00 $ 3.00 106 106 106 106
City 7 $ 2.50 $ 5.00 $ 5.00 $ 5.00 173 173 173 182
City a $ 5.00 $ 5,00 $ 5,00 $ 5.00 343 343 343 343
City 9 $ 2.50 $ 2.50 $ 2.50 $ 2,50 793 793 793 793
City 10 $ 7.50 $ 7.50 $ 7,50 $ 7.50 94 94 94 94
City 11 $ 3.00 $ 3.00 $ 3,00 $ 3.00 369 369 369 369
Cny 12 $ 5.00 $ 5.00 $ 5.00 $ 5.00 203 203 203 218
-- City 13 $ 2.50 $ 2.50 $ 2.50 $ 2,50 144 - 144 144 144
~ City 14 $ 5.00 $ 5.00 $ 5.00 $ 5,00 8.449 8,738 8,738 8,987
~ City 15 $ 5.00 $ 5.00 $ 5.00 $ 5.00 216 220 273 279
e;j City 16 $ 5.00 $ 5.00 $ 5,00 $ 5.00 208 208 210 235
.... - City 17 $ 2,50 25
- --
r.x:l City 18 $ 8.00 $ 8.00 $ 8.00 $ 8.00 55 55 55 55
~ City 19 $ 10,00 2
Eo< Avera eAnnual Ratel#ofPoles Billed $ 4.12 $ 4,26 $ 4.19 $ 4.58 16,781 16,621 17,154 17435
_. .~.. '. _.. r . ""-
SOUTH CAROLINA
City 1 $ 5.30 $ 5.30 $ 5.30 $ 5.30 2,521 2.521 2,521 2.521
City 2 $ 5.00 $ 5.00 $ 5.00 $ 11.09 8.845 8,845 8,845 8,845
co Avera eAnnual Rale I#ofpoles Billed $ 5.15 $ 5.15 $ 5.15 $ 8.20 11,366 11,366 11,366 11,366
~ -
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~! SOUTHWEST TEXAS
.;::1 City 1 $ 4.00 $ 4.00 $ 4.00 $ 4,00 9,120 9,143 9,220 9,220
It) City 2 $ 5.50 $ 5.50 $ 5.50 $ 5.50 2,407 2,407 2,407 2,407
~ Citv 3 $ 5.50 $ 5,50 $ 5.50 $ 5.50 2,012 2,012 2,012 2,012
co City 4 $ 5.50 $ 5,50 $ 5.50 $ 5.50 1,545 1,545 1,545 1,552
~ Citv 5 $ 4.00 $ 4,00 $ 4.00 $ 4.00 4,457 4.474 4,663 4,667
r.:t.. Avera e Annual Rate 1# of Poles Billed $ 4.90 $ 4.90 4.90 $ 4.90 19.541 19.581 19,847 19,858
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~ Updated as of 11/26103 Pagll4
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TWC Sampling
Municipal Pole Owners and Rent Information
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o Division Pole Owner 2000 2001 2002 2003 # Poles Billed # Poles Billed # Poles Billed # Poles Billed
~ Annual Annual Annual Annual for 2000 for 2001 for 2002 for 2003
Rates Ratel Rates Rates
L~'<Ji-, ~.,."~ ~r:'_""-~_'~~:'tGIff.......-'~-:-~;~~:j~~~:' ':7~k~~;>i~~:~::;:~:\~ ;~~:,. ~=~::~:=-::~~:~==-~~~~ v ~ ~ -.~~~-~~~~~~:~=.:~~:~.~~:~ ~~ :.. . ~~=-=-=~~~w~~~= ~_- ~ ~.~~< .' :~_~..=~ -:;~~:. ~-= ..~- ~'~~~_>~ ~~~8
SYRACUSe
City 1 $ 12.44 $ 12.63 $ 12.70 600 596 596
City 2. $ 8.98 $ 8,98 $ 8.98 183 183 183
City 3 $ 5.00 $ 5.00 $ 5.00 2,958 3,036 3056
City 4 $ 6.00 $ 6.00 $ 6.00 2.093 2,098 2111
City 5 $ 7.2B $ 7.28 $ 7,28 760 958 958
City I) $ 5.00 $ 5.00 $ 5.00 306 306 306
City 7 $ 8.96 $ 8.96 $ 8.96 566 567 578
City 8 $ 2,50 $ 2,50 $ 2.50 295 295 295
Citv9 $ 5.00 $ 5.00 $ 5.00 631 630 650
City 10 $ 5.00 $ 5.00 $ . 113 0 0
~
r:c: WESTERN OHIO' .
~ Citv 1 $ 6.33 $ 6.33 $ 6.33 $ 6.65 1 062 1,062 1,062 1,062
~ City 2 $ 4.00 $ 4.00 $ 4.00 $ 4.00 BBB 888 888 888
~ Citv3 $ 4.00 $ 4.00 $ 4,00 $ 4,00 1,4B9 1,489 1,489 1,489
~ Citv4 $ 2.04 $ 2,04 $ 2.04 $ 2.04 335 335 335 335
E-< Citv5 $ 4.00 $ 4.00 $ 4.00 $ 4.00 48 48 48 48
Citv6 $ 4.00 $ 4.00 $ 4.00 $ 4.00 120 120 120 120
. _.._ City 7 $ 3.75 $ 3.75 $ 3.75 $ 3.75 226 226 226 226
City 8 $ 2.40 $ 2.40 $ 4.00 $ 4.00 282 282 282 282
Citv9 $ 2.50 $ 2.50 $ 2.50 $ 2.50 149 14~ 14~ 149
co Citv10 $ 4.00 $ 4,00 $ 4.00 $ 4.00 3,112 3,112 3,131 3.137
~ City 11 $ 4,50 $ 4.50 $ 4.50 $ 4.50 128 128 128 128
l"-o City 12 $ 6.50 $ 6.50 $ 6.50 $ 6.54 271 271 271 271
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~ Updaledasof11/2.6103 Page 5
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0 Attachment B
~ MlInic;lpal Pole Rille ,Analysis Municipal Pole Rate Analysis
Inclusive or Munlc:lparrtles thai Indicated "none" for fen IS SO ExClusive 01 Mun1cllNllilles thai Indicated "none" lor fees as $0
Municipal Phone CATV Fiber MunIcipal Phone CATV Fiber
Aitkin S 6.00 Aitkin $ 6,00 ,
Alexandria S 8,55 $ 8.55 Alexandl1a $ 8.55 $ 8.55
Alvarado S $ . $ Alvarado none none none
Anoka S 2,00 "$ 5.00 Anoka S 2.00 , 5.00
Atwater " - $ - $ . AlWaler none none none
Benson $ 4.50 Benson $ 4.50
Blooming Prairie , 3.50 $ 3.50 Illooming Prairie $ 3.50 $ 3.50
Blue Earth $ 4.00 Illue Earth $ 4.00
llnlinerd " 3.50 $ 3.50 Brainerd $ 3.50 $ 3.50
Breckenridge $ 6.50 $ 3.50 Breckenridge $ 6.50 , 3.50
Ceylon $ - $ - $ . Ceylon none none none
OalJ101 Lakes S 8.00 $ 8.00 Detrlol Lakes $ 8.00 $ 11.00
East Grand Forks $ 7.00 $ 4.50 East Grand Fork5 $ 7.00 $ 4.50
Elbow Lake S . $ - $ . EiIIoW Lake none none none
Elk River $ 6.50 $ 6.50 $ 6.50 Elk Rlver $ 6.50 $ 6.50 $ 6.50
Eveleth S . $ . $ . Eveleth none none none
~ Fairfax S 2.00 Fairfax $ 2.00
F osston S - $ - $ . Fosslon none none none
~ Grand Rapids ,$ 5.00 $ 5.50 $ 10.00 Gl;lI\d Rapids $ 5.00 S 5.50 $ 10.00
I Granite Falls S 8.00 $ 3.50 Granite Falls $ 8.00 $ 3.50
Jackson $ 2.00 Jackson 15 2.00
Karislad S . $ $ Karlslad .
. . none 1I0ne none
Keewatln $ 2.00 $ 4,00 Keewatln $ 2.00 $ 4.00
~ \.8kefield $ 3.50 Lakeneld $ 3.50
LllnesbOf1) $ . s - $ . Lanesboro none none none
.... LeSueur $ 2.00 LeSueur $ 2.00
E-<
Long Prairie $ - $ - $ - Long Prairie none none none
Mal'5haU S 7.50 $ 7.50 Marshall $ 7,50 S 7.50
Melrose $ 10.00 Melron S 10.00
Moorhead $ 8.70 $ 7.00 S 8.60 Moomead $ 8,70 $ 7.00 $, 8.60
NllwUlm $ 3.75 S :\,75 New Ulm $ 3.75 $ 3.75
Randall $ 1.50 $ 3.12 Randall S 1.50 $ 3.12
CD Rochester $ 16.50 $ 16.50 $ 16.50 Rochester $ 16.50 $ 16.50 $ 16.50
N Sauk Centre $ 10.00 $ 10,00 Sauk Cen1re $ 10.00 S 10.00
CD Sleepy Eye $ 5.25 $ 5.25 Sleepy Eye ~ 5.25 S 5,25
r--
Spring Valley $ 6.00 Spring Velley $ 6,00
...; Thief River Falls ' ~ . $ . $ . Thief River Falls none none none
N
IQ Two Harbors S 3.50 Two Harbol'5 S 3,50
Warren $ - $ . $ . Warren none none none
N Wells S 3.50 Wells $ 3.50
...;
CD Westbrook $ 3.50 Westbrook $ 3,50
~ Wiilmar $ 2.00 $ 4.50 Willmar $ 2.00 S 4,50
Average $ 3.78 $ 4.02 S 2.77 Average $ 5.36 S 5.86 $ 10.40
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Assumpllon made: per allechment . assumed 1 per pole Assumption made: per enachmenl . assumed 1 per pole
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~ MunIcipal Pole Rate Analysis Municipal Pole Rate AnalysIs
Incclusive 01 Municipalities lhallndlcaled "/lone" for fees as $0 Exclusive of Munlc:lpaf~ie5 Ihellndlcated "none" lor lees as $0
Assumed "phone" rale for CATV/Fiber where not separately listed Assumed "phone" nile for CA TVlFlber where nlll sepallltely listed
Assumed "CATV' rBle for Fiber where nlll separately listed Assumed I'CA TV' rate for Fiber where not separalely listed
Municlpai Pllone CATV Fiber Municipal Phone CATV Fiber
Ankln S 6.00 S 6.00 S 6.00 ' Aitkin $ 6.00 S 6.00 $ , 6.00
A/e!Candrla S 8.55 $ 8.55 S 8.55 AIe.....ndria $ 8.65 S 8.55 $ 8.55
Afvarado S . ..$ - $ . Alvarado none none none
Moka $ 2.00 $ 5.00 $ 5.00 Moka $ 2.00 $ 6.00 $ 5.00
Atwater $ . S - $ . Atwater none none none
Bemson $ 4.50 $ 4.SO $ 4.50 Benson S 4.50 $ 4.50 $ 4.50
Blooming Prairie S 3.50 $ 3.50 $ 3.50' Blooming Prairie S 3.50 $ 3.50 $ 3.50
Blue Eatlh S 4.00 $ 4.00 Blue Earth $ 4.00 $ 4.00
Breinerd S 3.50 $ 3,50 S 3.50 Brainerd S 3.50 S 3.50 $ 3.50
Breckenridge $ 6.50 $ 3.50 $ 3.50 Breckenridge S 6.50 $ 3.50 $ 3,50
Ceylon $ . $ - ~ - Ceylon none none none
Detriot Lakes S 8.00 $ 8.00 $ 8.00 Delrio! Lakes S 8.00 S 8,00 $ 8.00
East Grand Forks S 7.00 $ 4.50 $ 4.50 East Grand Forks $ 7.00 $ 4.50 $ 4.50
Elbow lake $ . $ - $ - ElboW lake none none none
Elk River S 6.50 $ 6.50 $ 6,50 Elk River $ 6.50 $ 6,50 S 6.50
Evelelh S . S . $ . Evelelh none none none
~ Fairfax $ 2.00 $ 2.00 $ 2.00 Falr1811 $ 2.00 $ 2.00 $ 2.00
Fosston S - $ - $ - Fosston none none none
~ Grand Rapids S 5.00 $ 5.50 $ 10.00 Grand Rapids $ 5.00 $ 5.50 S 10,00
~ Granite Falls $ 8,00 S 3.50 $ 3.50 Granite Falls $ 8.00 $ 3.50 $ 3.50
Jackson $ 2.00 $ 2.00 $ 2.00 Jackson $ 2,00 S 2.00 $ 2.00
Kartstad $ . $ - $ - Karlstad none none none
=== Keewatin $ 2.00 $ 4.00 $ 4,00 KeewaUn $ 2.00 S 4.00 S 4.00
~ Lakefield S 3.50 S 3,50 $ 3,50 Lakefield $ 3.50 $ 3.50 $ 3.50
.... Lanesbo/'O S - $ . $ . lanesboro none none none
E-< LeSueur $ 2.00 S 2.00 $ 2,00 LeSueur $ 2.00 $ 2.00 $ 2.00
Long Prairie $ - $ . $ . Long Prairie none none /lOne
Manlllall S 7.50 $ 7.50 $ 1.50 Marshall S 7.50 $ 7.50 $ 7.50
Melrose S 10.00 $ 10.00 Melrose $ 10.00 $ 10.00
Moorhead S 8.70 $ 7.00 $ 8.60 Moomead $ ll.70 $ 7.00 $ 8.60
lIIewUlm S 3.75 $ 3.75 $ 3.75 New Ulm S 3.75 S 3,75 $ 3.75
Randall $ 1.50 $ 3.12 $ 3.12 Randall $ 1.50 $ 3,12 $ 3.12
(,0 Rochesler S 16.50 $ 16,50 $ 16.50 RochlO5ter S 16.50 $ 16.50 $ 16.50
CN Sauk Centre $ 10.00 :$ 10.00 S 10.00 Sa uk Centre $ 10.00 S 10,00 S 10.00
(,0
r-- Sleepy Eye $ 5.25 $ 5,25 $ 5.25 Sleepy Eye .$ 5.25 $ 5,25 S 5,25
Spring Valley S 6.00 $ 6.00 spring Valley S 6.00 $ 6.00
.-i
CN ThIef River Falls S . S - S - Thief River Falls none none none
It) Two Harbors $ 3.50 $ 3.50 Two Harbors S 3.50 S 3.50
CN Warren $ - S . $ . Warren none none nOlle
.-i Wells S 3,50 $ 3.50 Wells $ 3.50 $ 3.50
(,0 Westbrook $ 3.50 $ 3.50 $ 3.50 Westbrock $ 3.50 $ 3.50 $ 3.50
~ Wlllmsr $ 2.00 $ 4.50 $ 4.50 Willmar S 2.00 $ 4.50 $ 4.50
Average $ 3.76 $ 3.91 S 4.05 Average $ 5,36 S 5.30 $ 5.49
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~ Municipal Pole Rele Analysis Municipal Pole Rale Analysis
Exclusive or MUnfclp&I~le. that indicated "none' ror rees as $0 Inclusive of Municlpardies thai indIcated "none" (or (ees as $0
Highest Rate Chal1led Hlgnesl Rate Charged
Municipal Highest Rate Municipal Hlgl\esl Rate
,
Allkin $ 6,00 AlIkln $ 6.00
Alexandria $ 8.55 Alexandria $ 8.55
Alvarado none Alvarado $ .
Anoka $ 5.00 Anoka $ 5.00
Atwaler none Atwater $ -
Benson $ 4.50 Benson S 4.50
Blooming Prairie $ ;',50 Blooming Pralr1e S 3.50
Blue Earth $ 4.00 Blue Earth $ 4.00
Brainerd $ ;',50 Brainerd $ 3.50
Breckenridge $ 6.50 Breckenridge $ 6.50
Ceylon none Ceylan $ .
OelrlotLakes $ 8.00 Oelriollake. $ 8,00
East Grand Forks $ 7.00 East Grand FOrl(s $ 7.00
Elbow Lake none Elbow Lake $ -
Elk River $ 6.50 Elk River S 6.50
Eveleth none Eveleth $ -
~ Falt1ax $ 2.00 Fairfax $ 2.00
F O$slon none Fosston $ -
~ Grand Rapids $ 10.00 Grand Rapids $ 10.00
! Granlle Falls $ 8.00 Granile Falls $ 8.00
Jac:ksOtl $ 2.00 JacI<lon $ 2.00
Karlstad none Karlslad $ .
Keewelin $ 4.00 Keewalin $ 4.00
~ Lakefield $ 3.50 LakefieJd $ 3.50
...... Lanesboro none Lanesboro $ -
E-t LeSueur $ 2.00 LeSueur $ 2.00
Long Prairie none Long Prairie $ .
Marshall $ 7.50 Man;hall $ 7.50
Melrose S 10.00 Melrose $ 10.00
Moorhead $ 8.70 Moorhead S 8.70
New Ulm $ 3.75 New Ulm $ 3.75
Randall S 3.12 Randall $ 3.12
co Rochesler $ 16.50 Rochester $ 16.50
IN
co Sauk Centre $ 10.00 Sauk Centre $ 10,00
l'- Sleepy Eye $ 5,25 Sleepy Eye $ 5.25
...; Spring Valley S 6.00 Spring Valley $ 6.00
IN Thle( River Fella none Thief River Fell. $ -
it) Two Harilors $ 3.50 Two Harbol1 $ 3.50
IN Warren none Warren $ .
...; Wells S 3.50 Wells S 3.50
co
Westbrook S 3.50 Weslbrook $ 3.50
~ Willmar $ 41.50 Willmar $ 41.50
Average $ 5,82 Average $ 4.29
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