MINUTES OF A MEETING
OF THE BOARD OF COUNCIL OF THE
Mayor
Mayor
Minutes
The minutes of the
Ordinances,
Resolutions, and Orders
Cable Franchise Ordinance: Linda Ain, Attorney at Law was present and addressed Council. Mrs. Ain briefed council on her memo regarding the Competitive Cable Franchise Ordinance. Discussion ensued with the members. A copy of the memorandum is attached.
Ordinance O-27-2008: A summary prepared by Jann Seidenfaden of the Cable Franchise Ordinance was read by the clerk. This ordinance will be laid over to the next regular meeting of council for consideration.
Ordinance
O-26-2008: An Ordinance establishing
compensation for the position of “Parks and Greenspace Laborer I” was presented
to council for a second reading. A
motion was made by Mrs. Steller and seconded by Mr. Doepker to approve Ordinance O-26-2008. Upon call of the roll, the following members
voted “aye” - Mrs. Steller, Mr. Doepker,
Mrs. Levine, Mr. Haas, and
Mr. Peterman, and Mr. Lampe.. Voting “no” – none. The motion carried by a unanimous vote.
Ordinance O-28-2008: An Ordinance amending Section 12 of the Personnel Pay and Classification Plan pertaining to Holidays was presented to council for a first reading. This ordinance will be laid over to the next regular meeting of council for consideration.
Reports of Officers
Fire Department
Monthly Report for October:
Chief Mark Bailey presented his monthly report to Council. Chief Bailey noted that Jim Specht will be retiring effective
Police Department Monthly Report for October: Chief Mike Daly presented his monthly report to Council. Mrs. Levine thanked the police department for allowing her to go on a ride along with the police this past weekend. She noted that this is a great program that more residents should take advantage of. Mr. Doepker made a motion to receive and file the monthly report for October. It was seconded by Mrs. Levine. The motion passed by a unanimous vote.
City
Police Department Renovations: We are making progress in the finalization of the plans for the renovations of the police department. Chief Daly and members of the police department have provided a great deal of assistance to CDS’s design team. It is anticipated that we will have bid documents ready by the end of December.
Tremont Speeding Issue: We are awaiting final results of the survey delivered to the residents of Tremont to gauge their level of support for lowering the speed limit. To date, the police department has received 18 of the 65 distributed. Once the survey is completed, a meeting will be scheduled with the Public Safety Committee of Council to discuss the issue in further detail.
Sidewalk Request on
Report on
Vouchers
The
Visitors and Communications: Mr.
Rick Daugherty was present and addressed council on behalf of the Firefighters
Union. Mr. Daugherty read a letter from
Firefighter/Paramedic Jim Specht regarding the
reasons for his retirement.
With no further business to come before council, a motion
was made by Mr. LampeHaas
and seconded by Mrs. Levine to adjourn the council meeting at
APPROVED:
_____________________________
Mary H. Brown, Mayor
ATTEST:
____________________________
Melissa K. Kelly, City Clerk
**Attachment
THE
LAW
(859)
224-3035
FROM: LINDA K.
On
A.
Time Limits for Negotiation; Application Process. The
local franchising authority (“LFA”) has 90 days to
act if “the applicant has existing authority to access public rights-of-way”
(as incumbent telephone companies claim), 180 days otherwise. The time can be
extended by mutual agreement.
The FCC’s 90-day/180-day “shot clock” runs from the
submission of an application “or other writing” containing certain information
defined by the FCC. If a LFA does not act on an
application within the prescribed time, an interim franchise is deemed granted
on the terms proposed in the application. Thus, the applicant can define its
own franchise terms that take effect if the LFA fails
to act. This “interim” franchise remains in effect until the LFA takes final action on the application. Therefore, if an
applicant refuses to negotiate in good faith, it can place the LFA in the following dilemma: either accept the applicant’s
proposed terms, or deny the application, upon which the applicant can claim
publicly that it “couldn’t get a franchise” from the LFA.
Please note that the applicant can appeal the denial to a court.
B.
Build-Out. A LFA cannot refuse a
franchise based on “unreasonable build-out mandates.”
The
Order does not solve build-out issues. It provides 7 unreasonable build-out
mandates:
1. Requiring a new entrant to offer service to
all residents in a franchise area before it has begun providing service to
anyone;
2. Requiring
a new entrant to build-out beyond the footprint of their existing facilities
before they have even begun providing cable service;
3. Requiring
more of a new entrant than an incumbent cable operator by, for instance,
requiring the new entrant to build-out its facilities in a shorter period of
time than that originally afforded to the incumbent cable operator;
4. Requiring
a new entrant to build out its facilities in less time than that given to the
incumbent cable operator, or in areas of lower density than those that the
incumbent cable operator is required to serve;
5. Requiring
the new entrant to build-out and provide service to buildings or developments
to which the new entrant cannot obtain access on reasonable terms;
6. Requiring
the new entrant to build-out to certain areas or customers that the entrant
cannot reach using standard technical solutions; or
7. Requiring
the new entrant to build-out and provide service to areas where it cannot
obtain reasonable access to, and use of, rights-of-way.
Two
reasonable build-out mandates:
1. Consider
the new entrant’s market penetration and
2.
Consider
benchmarks requiring the new entrant to increase its
build-out after a reasonable period of time has passed after initiating service
and taking into account the applicant’s market success.
II.
On
The
ordinance that will be presented for first reading on
A.
There were many references in the existing ordinance to the Campbell County
Cable Board. All references to the Campbell County Cable Board have been
removed because the City is no longer a member of the Campbell County Cable
Board. Also, there was language in the existing ordinance, which no longer
applied to City of
The
Company will voluntarily provide service using either a 1GHz analog and digital
RF system over a fiber optic infrastructure. Such service will include over two hundred
(200) channels of digital content, as well as high-definition (HD) programming,
digital video recorder (DVR) and video-on-demand (
1. As a new entrant provider of cable television
service, the Company’s ability to construct and extend its system will be
largely dependent upon the market penetration and success it achieves over
time. In recognition of this and the
many challenges of being a new entrant, the Parties agree to the following:
A.
The
Company will make its cable service available to at least 5% of the residential
households existing in the Franchise Area by no later than
B.
If
the Company achieves a market penetration of at least 30% of the households
passed by its cable system after completion of Phase 1, the Company will make
its cable service available to at least 20% of the residential households in
the Franchise Area by no later than December 31, 2012 so long as the Company is
achieving a market penetration of at least 30% of the households passed by its
cable system (“Phase 2”). Market
penetration will be measured as of June 30th of each year during
Phase 2. If the Company is achieving a
penetration of at least 30% of the households passed by its system as of June
30th, the Company will commit to build for the following calendar
year on a schedule designed to achieve the Phase 2 buildout
percentage by
C.
If
the Company achieves a market penetration of at least 40% of the households
passed by its cable system after completion of Phase 2, the Company will make
its cable service available to at least 40% of the residential households
existing in the Franchise Area by no later than December 31, 2015 so long as
the Company is achieving a market penetration of at least 40% of the households
passed by its cable system (“Phase 3”).
Market penetration will be measured as of June 30th of each
year during Phase 3. If the Company is
achieving a penetration of at least 40% of the households passed by its system
as of June 30th, the Company will commit to build for the following
calendar year on a schedule designed to achieve the Phase 3 buildout
percentage by
D.
If
the Company achieves a market penetration of at least 40% of the households
passed by its cable system after completion of Phase 3, the Company will make
its cable service available to at least 60% of the residential households
existing in the Franchise Area by no later than December 31, 2018 so long as
the Company is achieving a market penetration of at least 40% of the households
passed by its cable system (“Phase 4”).
Market penetration will be measured as of June 30th of each
year during Phase 4. If the Company is
achieving a penetration of at least 40% of the households passed by its system
as of June 30th, the Company will commit to build for the following
calendar year on a schedule designed to achieve the Phase 4 buildout
percentage by
E.
If
the Company achieves a market penetration of at least 40% of the households
passed by its cable system after completion of Phase 4, the Company will make
its cable service available to at least 80% of the residential households
existing in the Franchise Area by no later than December 31, 2020 so long as
the Company is achieving a market penetration of at least 40% of the households
passed by its cable system. (“Phase 5”).
Market penetration will be measured as of June 30th of each
year during Phase 5. If the Company is
achieving a penetration of at least 40% of the households passed by its system
as of June 30th, the Company will commit to build for the following
calendar year on a schedule designed to achieve the Phase 5 buildout
percentage by
F.
On or
before August 1 of each year of the franchise, the Grantee shall furnish the
City with a report containing the number of homes passed as of June 30, the
market penetration as of June 30 and Grantee’s plans for building during the
upcoming year.
2. Both
Parties acknowledge that the above-referenced benchmarks are based in large
part upon a static view of the video services market as of the effective date
of this Ordinance. Accordingly, the
Parties agree to re-open discussions on this topic and adjust or eliminate
these benchmarks in the event of a material adverse change in market
conditions. A material adverse change in
market conditions will be deemed to have occurred if the Company can
demonstrate that its gross margin on cable services provided in the Franchise
Area has declined by 20% or more or market penetration has declined by 20% or
more.
D. As you are aware, the
Payment to the state shall be made at the times and
in conformance with the requirements of Kentucky Revised Statutes, Chapter 136,
as revised by House Bill 272 (Tax Modernization) in the 2005 Regular Session of
the Kentucky General Assembly. If there
is a change of state or federal law related to the imposition of a franchise
fee or other tax or fee, including without limitation property taxes and
occupation license fees, during the term covered by this franchise Ordinance,
Company will comply with the law as changed or amended.
E. Regarding I-Net capital support, Article II,
Section 17(3) of the new ordinance provides:
If and to the extent an Institutional Network
(“I-Net”) is constructed by the incumbent cable provider for use by the City
following the adoption of this franchise, Grantee will pay a pro rata share of any capital costs incurred in or associated with
the purchase of equipment necessary for the City to make use of the I-Net. The City
must identify and communicate in writing to each cable operator any capital
support requirement which will be incurred in or associated with the purchase
of necessary equipment for a given year of the franchise on or before August 1
of the year prior to the expense. (For
example, the City must identify a capital support requirement for 2010 no later
than
IV. WHAT IS THE
After
this ordinance is enacted, the City, as required by Sections 163 and 164 of the
Kentucky Constitution, will advertise a request for bid proposals pursuant to
the ordinance. The City will review all bids received and may award franchises
to all those entities that can comply with the terms and conditions of the
ordinance. (Please note that this ordinance creates a non-exclusive franchise.) Said franchise(s) shall be awarded by
resolution.