City Council Draft Agenda

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Meeting Date: 04/18/2017  
Co-Submitter: Anja Wendel From: Anja Wendel, Senior Assistant City Attorney AW

Public Hearing, Consideration and Adoption of Ordinance No. 2017-04, Resolution No.  2017-11:  An ordinance of the Flagstaff City Council amending the Flagstaff City Code, Title 3, Business Regulations, Chapter 3-09, Cable, by making amendments relating to regulation of cable operators, providing for penalties, repeal of conflicting ordinances, severability, and establishing an effective date; and a resolution of the Flagstaff City Council authorizing renewal of a Cable License Agreement with NPG Cable, LLC, doing business as Suddenlink, and establishing an effective date  (cable ordinance updates, renewal of cable license agreement) 
1) Continue Public Hearing/Close Public Hearing
2) Read Ordinance No. 2017-04 by title only for the final time
3) City Clerk reads Ordinance No. 2017-04 by title only (if approved above)
4) Adopt Ordinance No. 2017-04
5) Read Resolution No. 2017-11 by title only
6) City Clerk reads Resolution No. 2017-11 by title only (if approved above)
7) Adopt Resolution No. 2017-11
Executive Summary:
The City has a Cable License Agreement with NPG Cable, LLC doing business as Suddenlink ("NPG").  NPG has been providing cable services to the Flagstaff community since 1995.  The current license was issued in 2007, was set to expire December 31, 2016, and has been renewed on an interim basis through August 31, 2017.

NPG is seeking to renew the license for at least a 10 year term. The license allows NPG to construct, install, operate and maintain a cable services system in City rights-of-way. Also by virtue of federal and/or state laws, NPG may use the same system to provide internet and telecommunications services without an additional license.  NPG pays the City an annual license fee of 5% of gross revenues from cable services as consideration for use of City rights-of-way.

City staff recommends that the City approve a renewal license with NPG for at least a ten (10) year term. 
Financial Impact:
NPG pays the City an annual license fee of 5% of gross revenues from cable services in the Flagstaff community. 
Policy Impact:
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Council Goals 2017-2019:

Team Flagstaff Strategic Plan 2017:
Strategic Priority #3:  Foster a resilient and economically prosperous city
2.  Deliver outstanding service through a healthy environment, resources and infrastructure.

Regional Plan:
Policy ED 3.9  Develop infrastructure so that the community has access to high-speed internet and telecommunications.
Has There Been Previous Council Decision on This:
1995:  City issued cable license agreement to NPG
2007:  City approved renewal license with NPG through December 31, 2016
December 2016:  City approved interim renewal license (first) through April 30, 2017
March 2017:  City approved interim renewal license (second) through August 31, 2017
March 2017:  City Council Work Session related to proposed cable ordinance and renewal license

Options and Alternatives:
Ordinance No. 2017-04: 
1.  Approve
2.  Approve with amendments other than those proposed
3.  Do not approve.
Some of the proposed amendments are required to conform to state law, e.g. definition of gross revenues.

Resolution No. 2017-11:
1.  Approve
2.  Approve with different terms and conditions of Cable License Agreement
3.  Do not approve (not recommended because of operational uncertainty, loss of fees, legal risk)
Some of the proposed terms and conditions are required to conform to state law, e.g. definition of gross revenues, wifi radio and microcell equipment. 
The proposed draft ordinance, resolution, and renewal cable license agreement will be included in the final agenda packet for the April 4, 2017 Council Meeting.  City staff is seeking Council direction at the March 28, 2017 Council Work Session related to possible code changes, and possible changes in the terms and conditions the cable license agreement upon renewal.  Most of the possible changes are identified in the Cable Licensing 101 document (attached).
Key Considerations:
Suddenlink has the qualifications, finances, and equipment to operate a cable system in the City. 
Community Benefits and Considerations:
Suddenlink plays an important role in the community providing entertainment and communications.
Community Involvement:
Community input as to the proposed renewal license agreement is sought at the public hearing on April 4, 2017.  Notice of the public hearing was posted on the City website and advertised in the local newspaper. 
2007 Cable License
Cable Licensing 101
Channel Lineup in April
Line Extension Example
Ord. 2017-04
Res. 2017-11


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