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83-6837R62 RESOLUTION NO. 6837 FEDERAL CABLE TELEVISION LEGISLATION AND THE CITIES WHEREAS, cable television is an important communications and information technology for the nation`s cities, and WHEREAS, provision of cable television service has already proven to be a valuable service to hundreds of communities across the country, and holds great potential promise to all cities in the United States, and WHEREAS, the cable television industry is thri~~~.ng and grow ing in the United States, with large return on inve::tment and iikeli - hood of even more considerable profit in the future, and TrTfiEREAS, local governments have had the responsibility for franchising cable television systems in their cities and for overseeing the implementation of those franchises once awarded, and WHEREAS, cable television, because it will likely enjoy exclus- ivity within a community and will be the only telecommunications medium with a direct link to the homes of citizens with its facil- ities traversing the public`s property, and WHEREAS, the presence of a strong local government role in overseeing of franchise agreements has worked to ensure that contractual obligations are carried out and the public interest served, and WHEREAS, the best approach to franchising, oversight of the franchise, and resolution of problems which may occur from time to time in carrying out franchise elements, has been the direct negotiation between local governments and cable companies, unfetter- ed by the presence of third parties, and WHEREAS, local governments, recognizing the need for and success of direct relationships between cities and cable companies, have sought to discourage unnecessary involvement in these matters by Congress and the Courts, and WHEREAS, cities, working together and with a broad coalition of concerned interests including representatives of labor, educa- tion, consumers, telecommunications, rural and utility interests, have helped to defeat in recent years broad attempts to remove local governments from their central role in the cable television process, and WHEREAS, federal cable television legislation is again being considered by the Congress, with legislation pending before the full Senate and hearings having commenced at the.Subcommittee level in the House of Representatives, and tVHEREAS, there is a possibility that a strong, bi-partisan effort will be made by the Congress to enact federal cable legisla- tion in the coming months, and WHEREAS, the proposal currently pending before the full Senate is an improvement over the versions which preceded it, and WHEREAS, members of the House and Senate who have worked closely with the nation's cities in a broad variety of areas, fully understanding the traditional and appropriate opposition of local governments to such legislation, will be looking to local governing bodies for leadership and direction in improving whatever proposals are forthcoming.' NOW, THEREFORE, BE IT ',RESOLVED that the Ci±y Council of the City of Richfield, Minnesota supports the view that federal cable television legislation restricting the traditional responsibilities which nave been exercised bey local governments in this-area is not appropriate; and BE IT FURTHER RESOLVED that if federal cable television legis- lation continues as a possibility, that the City of Richfield, Minnesota shall work to ensure that, to the extent possible: -federal cable legislation not limit the option of local governments to regulate the rates charged by cable tele- vision companies for~,basic service, should cities believe it in the public interest; -federal cable legislation not limit the option of local governments to define by negotiation with cable television companies the definition of basic services; -federal cable legislation provide maximum competition in the .franchise renewal process with no presumption or expectancy of renewal on the part of the cable company holding the fran- chise; -federal cable legislation "grandfather" all existing franchises, and their terms and conditions and all franchise processes in which a Request for Proposal has been issued; and that federal legislation not apply to renegotiated franchise agreements, signed within six months of enactment; -federal cable legislation not provide cable companies with the power to abrogate contractual obligations based on a unilateral assertion',of a significant change in circumstances; -federal cable legislation not limit the ability of local governments to negotiate the purchase price of a cable system if there is a'material breach in the franchise agreement; -federal cable legislation not define franchise fees to in- clude taxes, fees, or other assessments, imposed by the franchising authority or other governmental authorities on cable system operators or cable subscribers. BE IT FURTHER RESOLVED that in working with Congress in the ~. whole area of cable television legislation, the City of Richfield shall be guided by the principle of preserving existing municipal authority in the cable television field, which has greatly bene- fited the cable television industry, the cities, and the nation. Passed by the City Council_..of the City of Richfield this 14th day of November, 1983. ATTEST: y v' K. Bergh Cit Jerk