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