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09/16/1993 - City Council Special AGENDA SPECIAL CITY COUNCIL MEETING Thursday September 16, 1993 4:00 p.m. Eagan Municipal Center Building I. ROLL CALL & ADOPTION OF AGENDA II. MUNICIPAL CENTER/PUBLIC SAFETY EXPANSION III. CABLE RATE REGULATION CERTIFICATION IV. NORTHEAST EAGAN TIF DISTRICT V. OTHER BUSINESS VI. ADJOURNMENT AGENDA SPECIAL CITY COUNCIL MEETING Thursday September 16, 1993 4:00 p.m. Eagan Municipal Center Building I. ROLL CALL & ADOPTION OF AGENDA II. MUNICIPAL CENTER/PUBLIC SAFETY EXPANSION III. CABLE RATE REGULATION CERTIFICATION III. OTHER BUSINESS IV. ADJOURNMENT r. MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: SEPTEMBER 10, 1993 SUBJECT: SPECIAL CITY COUNCIL MEETING/THURSDAY, SEPTEMBER 16 At the last regular City Council meeting, a special meeting of the City Council was scheduled for Thursday, September 16, 1993 at 4:00 p.m. The purpose of the meeting is to: 1) meet with a representative of E & V Construction Management and Dewey Thorbeck, the City's architect, for the Municipal Center/Public Safety Expansion Project and 2) to meet with members of the cable advisory commission to discuss the rate regulation certification. MUNICIPAL CENTER/PUBLIC SAFETY EXPANSION PROJECT E & V Construction Management and Dewey Thorbeck have been meeting with each department to analyze space needs and relationships to begin the preliminary design work for the Municipal Center/Public Safety Building expansion. In an effort to provide ongoing information and receive City Council input and direction, Mike Stowe of E & V Construction Management and Dewey Thorbeck of Thorbeck Architects will be meeting periodically with the City Council for that purpose. The first of those meetings is planned for the first half of this City Council workshop on the 16th. There are no support documents or information for distribution at this time. RATE REGULATION CERTIFICATION In order for the Joint Burnsville/Eagan Cable Commission to comply with the rate regulation certification process, direction must be provided to the joint commission during the month of September. The FCC has established September 1 as the first date for local franchising authorities to be eligible for certification. The LFA's certification will become effective 30 days after the FCC filing unless determined by the FCC that the LFA has not met one of the three mentioned criteria as outlined in a memo prepared by Mike Reardon, Cable Coordinator. This information is attached for your review. Members of the Cable Commission along with the Cable Coordinator will be present to discuss this item with the City Council during the second half of the workshop. It is anticipated that the workshop will be held from approximately 4:00-6:00 p.m. as discussed at the last regular City Council meeting. /S/ Thomas L. Hedges City Administrator TLH/vmd MEMO TO: ASSISTANT TO CITY ADMINISTRATOR HOHENSTEIN DEPUTY CITY MANAGER HANSEN FROM: MIKE REARDON, CABLE COORDINATOR DATE: SEPTEMBER 2, 1993 SUBJECT: RATE REGULATION CERTIFICATION BACKGROUND To assist with the Councils' understanding on this item, the background provides a summary on what can be regulated, the certification process, the rate regulation process and the Cable Commission' s recommendations pertaining to these items . 1992 Cable Act' s Designation of Rate Regulation Authority • The 1992 Cable Act authorized local franchising authorities (LFA) to regulate the rates of the Basic Service tier and any ancillary services associated with the delivery of the Basic Service . • The FCC was authorized by the Act to regulate the rates of the expanded service tier (s) (Meredith Cable' s Preferred Service) minus any premium or pay-per-view channels. • The FCC' s regulation of the expanded tier would only be initiated when the FCC receives a complaint from that particular system, i .e . LFA, subscriber or other. LFA Certification Process • In order for an LFA to regulate basic tier/ancillary services, it must certify in writing to the FCC that : • Its local rate regulations will be consistent with the rate regulations of the FCC. • It has the legal authority to adopt and the personnel and resources to administer rate regulations. • Its procedural rules provide an opportunity for consideration and the views of interested parties (conduct public hearings) . • The FCC has established September 1 as the first date LFA s are eligible to seek certification. • The LFA' s certification will become effective 30 days after the FCC filing unless determined by the FCC t iat the LFA has notimet one of the three mentioned criteria. ,III • Attached to this memorandum is a copy of the FCC' s certification form, FCC328 . • The LFA has 120 days from the effective date of certification to adopt its local rate regulation rules consistent with the FCC rules (LFA may start the adoption of such rules at any time) . Rate Regulation Process • Upon the LFA certification and adoption of appropriate rules, the LFA must notify the cable operator that its FCC requirements have been met and that it intends to regulate the Basic Service rates and rates for equipment required to receive Basic Service. • The cable operator has 30 days to file its basic rate schedule, and any supporting material concerning the reasonableness of its rates with the LFA. • If the LFA is able to determine that the operator' s current rates are within the FCC' s reasonable rate standards (benchmarks) , the rates could go into effect 30 days after they are submitted. • If the LFA is unable to determine if the rate (s) is within the FCC' s reasonable rate standards, or if the operator has submitted cost-of-service showings in order to justify a higher rate, the LFA can take an additional period of 90 days to receive more information or 150 days to evaluate a cost-of-service showing. • The LFA has the right to collect the information, including proprietary, in order to make a rate determination in cases where the rates exceed the benchmarks . • If proposed rates are at or below benchmark, information requests by the LFA are more limited and relate more to summary information to support the company' s rates. Status of BECCC's/Member Cities Certification Process • At the Cable Commission' s August 12 meeting, Legal Counsel Creighton presented a pro and con analysis for rate regulation certification. The Commission had limited discussion on this item and deferred final discussion on any possible recommendation pertaining to rate regulation until its September 1 meeting. • At the Cable Commission' s September 1 meeting, after considerable discussion on the merits for and against certification, the Commission recommended that the Member Cities seek FCC certification. • In addition, again after considerable discussion, the Commission also recommended that the Cable Commission serve as the "franchising authority" for the Member Cities on rate regulation matters . • Coordinator Reardon, Legal Counsel Creighton, and Commission Chair Hanson and Vice-chair Dahl will present the Commission' s recommendations to each Member City' s Council at work sessions in September. DISCUSSION The following information presents the basis for the Commission' s g P discussions and subsequent recommendations on: • Whether the Member Cities/Commission seek certification or not seek certification for rate regulation. • If rate regulation certification is adopted, whether the Commission should act on behalf of its Member Cities as the rate regulatory authority or merely in an advisory capacity. Rate Regulation Certification The following is a summary of Legal Counsel' s pro/con rate regulation certification analysis, with additional analysis provided by Coordinator Reardon. Rationale for Not Certifying • There will be expenses associated with rate regulation and the Cities/Commission are responsible for those expenses which will be payable out of franchise fees. • The expenses will be both direct monetary expenditures for legal and outside accounting help and in kind expense of staff/Cable Coordinator. • Legal Counsel' s estimation on the range of costs associated with regulation vary from the evaluation of the company' s benchmark calculations, $1, 000-$2 , 000, to a full cost-of-service hearing, $10 , 000-$20, 000 . There will also be the initial costs of rate certification, perhaps $2, 000 . • Approximately only 2% of the current Burnsville/Eagan cable subscribers subscribe only to the Basic Service tier (the tier that is rate regulatable by the LFA) . However, 100% of the subscribers have to subscribe to the basic tier in order to receive the next level of service, and therefore their rates are affected. • If certified, the Commission/Cities may have to actually approve or accept rates and rate increases due to the substantiated findings provided by the cable operator, and therefore perhaps have to justify rate increases to the public. • The advent of rate regulation may create a more adversarial relationship with the cable company during a rate hearing process . • Due to the expertise required in a rate decision-making process, it is possible that the Commission' s participatory role may have to be reduced and rely more on consultants, experts and staff . The Commission has always been very involved in its activities . Rationale for Certifying • Both the Member Cities' Joint Powers Agreement and the Member Cities' franchises assumed there was a responsibility for the monitoring and regulation of rates . The Agreement describes that one of the Cable Commission' s general purposes is to "provide equitable and reasonable rates and service levels for the citizens, " while the franchise contains ten pages concerning rate regulation and procedure. These documents were created in 1983 when LFAs had the authority to regulate rates. • It would, therefore, appear that when the Commission/Cities drafted the cable documents/ordinances to govern cable, there was the presumption that the Commission and/or Member Cities would be involved in the regulation of rates. The 1984 Cable Act removed that responsibility. • It could be difficult for the Commission/Cities to justify to a subscriber that it did not regulate rates when it had the capability to do so. • Even though only 2% of the current subscribers subscribe only to Basic Service, the basic service rate is the first part of any other service package that the consumer may subscribe to. Therefore, the regulation of the basic service affects the rates for all subscribers. • The Commission/Cities would have the authority to regulate the other equipment or ancillary services associated with the provision of Basic Service, i .e . , remote service, additional outlets, convertors, installation and service call fees . • 61% of the subscribers have remote service and 28% have additional outlets . • As convertor fees were only initiated on September 1, staff has not received information as to how many will be paying for this service . It is estimated that at least 90% of the Member Cities 23 , 000 subscribers will have convertors. • Prior to September 1, there was no service call fee charged. • The Member Cities currently have approximately several hundred thousand dollars in retained franchise fees in each City. • The Member Cities' franchise fees are derived directly from those subscribers that would receive the benefit of rate regulation. • Even with regulation, it would appear that the Member Cities would still continue to receive sufficient franchise fees to fund cable administration, regulation and communication services . • Certification at this time would set current basic rates at or near the benchmark to keep future rate increases within inflation. • Future rate increases would be capped at an inflationary rate unless the company enters into a cost-of-service hearing wherein the burden would be on the company to prove that they must increase their rates more than inflation. • Without certification the inflationary cap is not applicable. • Through certification and rate regulation, there is the opportunity to keep rates reasonable as defined by the FCC, not only now, but in the future . The earlier an LFA certifies, there is a presumed greater long-term benefit to the subscriber. • The company must supply significant information to support not only benchmark calculations, but also its rates . This information could be valuable to assist in a better understanding of the system' s operations from a financial perspective . • Without certification, the company can not be required to provide any rate support or rationale information regarding rate increases . • Any initial costs for determining rates would be borne by the operator during their process of establishing rates . • Currently, Meredith Cable is in essence an unregulated monopoly. • Meredith Cable experiences no true competition, i .e. a cable company competitor, even though by State law the franchises cannot be exclusive. As defined by the FCC, Meredith Cable does not have "effective competition" and therefore eligible to be regulated. • It is not anticipated that the Member Cities' consumers would have true or "effective" competition in the next several years, especially from another cable operator. • If and when "effective competition" does exist, there would be no reason nor legal authority to regulate the rates. Rate regulation is designed as an interim measure only until effective competition exists . • Since January 1 , 1990, staff has received 48 complaints on either rates, charge for remotes and/or additional outlets or the lack of competition. This represents 36% of all complaints received during this period and is an accurate annual representation of the consistent percentage of complaints received. • Both NATOA and MACTA support and encourage their members to apply for certification on September 1 . Please refer to the attached NATOA Action Alert . COMMISSION CONCLUSION & RECOMMENDATION: The Commission unanimously concluded and recommended, based on the arguments for certification as noted in this memorandum, that the Member Cities seek FCC rate regulation certification no later than October 15 . It should be noted that the Commission expressed a reluctance to have government interfere with private enterprise and a concern for the possible expenses associated with rate regulation. However, it was determined that the arguments for certification out-weighed these concerns . It was also noted that the Commission will, if deemed the party to regulate rates, take a very cautious and prudent approach to determining when and what rates they will question so as to hopefully minimize the associated expenses . Rate Regulation Responsibility If the Member Cities determine to certify and regulate rates, there is then the question of who conducts, implements and officially authorizes rate regulation. There are three possibilities : the Commission, each Member City, or a combination of both. According to the Joint Powers Agreement, one the general purposes of the Agreement was to establish the Cable Commission with the responsibility to "provide equitable and reasonable rate service levels for the citizens of the parties to this agreement . " Furthermore, the Agreement states, "The Commission shall undertake all procedures necessary to maintain uniform rates and to handle applications for changes in rates for the services provided by the grantee . " It would, therefore, appear, based on the language of the Member Cities' Joint Powers Agreement, that the Commission has the authority through the Agreement to act on behalf of its Member Cities in areas of rate regulation. However, it has been the general understanding and working relationship between the Member Cities and the Commission for a number of years that the Commission shall only serve in an advisory capacity to its Member Cities. It is with this understanding that the Commission has operated since my arrival as staff to the Commission. This relationship has worked well for all parties over the last 5' years, including the transfer of ownership in 1992 . All the activities that the Commission has handled on behalf of its Member Cities, especially the transfer of ownership, required consistent staff communication, and depending on the issue, perhaps briefings and other support material . Normally, the timeframe on each one of these issues was one where the Commission and staff were in control of the schedule. Additionally, only in the case of the transfer of ownership were there public hearings conducted, and at those, extremely minimal public participation was involved. Rate regulation could be another matter as noted: • The costs would be increased for each City, as they could have duplicated and redundant research, staff time, etc. The Commission, acting on behalf of both Cities would reduce costs by sharing resources. • Not only would the regulatory authority be bound to the FCC' s rate regulation schedules, the public hearing process could involve substantial public input and be very time consuming. • The amount of communication and coordination between the Commission and Member Cities could be excessive . With all past issues staff has had the time to communicate and ensure that all parties were on the same page . When necessary, this allowed the Councils, and/or Member Cities' staff, the time to be aware of each others intent and therefore could respond accordingly. • There could be the possibility that one Member City could authorize a specific rate while the other City could deny a rate . Or, one City could choose to regulate while the other chose not to. This could create a situation where each City, and consumers, could be under different rate structures and yet be receiving identical services . COMMISSION CONCLUSION & RECOMMENDATION: The Commission unanimously determined and recommended, again after considerable deliberation by both Commission and staff, that it would be in the best interest of the Member Cities to have the Commission act on behalf of the Cities as its full rate regulatory body. The advisory relationship would thus be altered in this circumstance, and would include the Commission filing the FCC certification on behalf of the Member Cities and subscribers, full monitoring and regulation of rates including, if necessary, conducting all FCC regulatory mandates, i.e. , public hearings, cost-of-service reviews, etc. Budgeting would have to be included to ensure the Commission is able to require complete compliance by the cable company as determined necessary. The Commission was extremely sensitive to the past and current advisory relationship that it has with both Cities. It wanted it noted that it was making this recommendation based solely on: the complexity of rate regulation, that it was the best means by which the rates could be regulated in a timely, cost effective, and • equitable manner, and; the apparent trust that has been established between the Commission and Member Cities during the last several years in the Commission's telecommunications conduct on behalf of the Member Cities. Legal Counsel Creighton will also have to provide information as to the whether the Commission has the legal authority to act, and conduct business, on behalf of the Cities under the current Joint Powers Agreement, and any other applicable statutes. CONCLUSION As noted, Legal Counsel Creighton, Chair Hanson, Vice-chair Dahl, and myself will be available to attend both of the Councils' work sessions in September. Should you have any questions prior to the meetings please do not hesitate to contact me . , Cable Coordinator Attachment • i \ AIOAIACTION ALERT v .. The National Association of Telecommunications Officers and Advisors An affiliate of the Notional League of Cities CABLE REGULATION BEGINS SEPTEMBER 1 FCC CERTIFICATION FORM ATTACHED Attention all NATOA Jurisdictions: We are writing to alert you to a recent change in the effective date of cable rate regulation adopted in the last several weeks by the Federal Communications Commission (FCC), and to a misleading campaign being waged by the cable television industry. The FCC has advanced the effective date of cable rate regulation by one month. from October 1 to September 1. 1993. Thus, beginning September 1, franchising authorities may file with the FCC Form 328 which will enable local governments to regulate basic cable rates on a local level. Also on September 1, franchising authorities may initiate the process by which the FCC will address non-basic cable rates. At the same time, the FCC has maintained the November 15, 1993 date of expiration for the federal cable rate "freeze". As these changes are underway, you should be alerted that the cable television industry in many regions of the country is embarking on an organized campaign to discourage local governments from filing for FCC certification to regulate basic cable rates. Many false and misleading claims and arguments are being put forth by the industry. At NATOA, we are urging all local governments: DO NOT BE MISLED BY THE CABLE INDUSTRY'S CONTINUED CAMPAIGN AGAINST RATE REGULATION: THE ONLY WAY LOCAL GOVERNMENTS CANADEOUATELY PROTECT SUBSCRIBERS IS BYBECOMING CERTIFIED TO REGULATE RATES. Without rate regulation certification, your community will be without adequate tools to prevent unwarranted increases in basic cable rates after the rate freeze expires on November 15th, and may be unable to adequately respond to both citizens and the FCC on complaints regarding non-basic cable rates in your community. The types of "informal' understandings 'side-agreements' industry are unenforceable, has or - urged the cable t a o ceab as the FCC o side agreements being u ged by ry f le, . publicly stated. Despite cable company assertions to the contrary, the certification process is simple and painless, the regulation process is not difficult to understand or implement, and • the primary burden of compliance with federal standards remains on the operator—not the franchising authority. A copy of the FCC certification form is attached. NATOA will have available for sale at the Orlando conference (or by mail) a Cable Act implementation kit that will include copies of FCC forms, sample local rules, advice on implementation questions, and other materials designed to enable local governments promptly and fairly to exercise their regulatory rights under the Cable Act. NATOA is urging all members to file the FCC certification form on September 1, in order to send a strong message to cable consumers and the cable industry. Following that filing, local governments will have to take these steps: 1) Adopt a local regulation confirming local compliance with FCC guidelines; and • 2) Notify their cable operator(s) by certified mail that certification has occurred and necessary rules have been adopted. You may also file a complaint with the FCC on Form 329 if rates for the enhanced tier of services exceed the benchmark. NATOA's Cable Act implementation kit includes materials for all of these steps. We look forward to seeing you in Orlando at the annual conference, where there will be an abundance of instructive sessions and ample opportunity to exchange information on all cable and telecommunications issues. Sincerely, • NATOA Board of Directors • • • Approved by 0610 4 3060-0550 ion. c one� nintions Carnruion IF:spires 03(31/96 wshinfton,o.C. 20554 -- - FCC 328 For FCC Use Only • CERTIFICATION OF FRANCHISING AUTHORITY TO REGULATE BASIC CABLE SERVICE RATES AND INITIAL FINDING OF LACK OF EFFECTIVE COMPETITION 1 Name of Franchising Authority 3. Will your franchising authority adopt (within 120 days of certification) and ves No Mailing Address administer regulations with respect to basic cable service that are consistent City State ZIP Code with the regulations adopted by the FCC pursuant to 47 U.S.C.Section 543(b)? Telephone No.(include area code): 4. With respect to the franchising authority's regulations referred Person to contact with respect to this form: to in Question 3, El Yes 0 No a. Does your franchising authority have the legal authority to adopt them? Eyes DNo 2.a. Name(s)and address(es)of cable system(s)and associated FCC community b. Does your franchising authority have unit identifiers within your jurisdiction. (Attach additional sheets if necessary.) the personnel to administer them? Cable System's Name S. Do the procedural laws and regulations D Yes No Mailing Address applicable to rate regulation proceedings by your franchising authority provide a City State ZIP Code reasonable opportunity for consideration of the views of interested parties? Cable System's FCC Community Unit Identifier: Dyes DNo 6. The Commission presumes that the cable system(s) listed in 2.b. is(are)not subject Cable System's Name to effective competition. Based on the definition below, do you have reason to believe that this presumption is correct? Mailing Address (Effective competition means that(a)fewer than 30 percent of the City State ZIP Code households in the franchise area subscribe to the cable service of a cable system; (b) the franchise area is (i) served by at least two Cable System's FCC Community Unit Identifier: unaffiliated multichannel video programming distributors each of which offers comparable video programming to at least SO percent of the households in the franchise area; and (ii) the number of 2. b. Name (s) of system(s) and associated community unit identifier(s) you households subscribing to programming services offered by claim are subject to regulation and with respect to which you are filing this multichannel video programming distributors other than the largest certification. (Attach additional sheets if necessary.) multichannel video programming distributor exceeds 15 percent of the households in the franchise area or (c) a multichannel video Name of System Community Unit programming distributor operated by the franchising authority for Identifier that franchise area offers video programming to at least 50 percent of the households in that franchise area.) Name of System Community Unit Signature Identifier Title 2.c. Have you served a copy of this form on all parties Yes D No Date listed in 2.b.? WILLFUL FALSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT(US.CODE TITLE 18,SECTION 1001). Return the original and one copy of this certification form(as indicated in Instructions),along with any attachments,to: Federal Communications Commission Attn: Cable Franchising Authority Certification P.O.Box 18539 Washington,D.C. 20036 FCC 3U federal Communications Commission Washington.D.C. 20554 _ _ 306WSw Expires 05/31/96 — INSTRUCTIONS FOR FCC 328 FRANCHISING AUTHORITY CERTIFICATION 1. The Cable Television Consumer Protection and Competition Act, Question 4(b): The franchising authority must have a sufficient enacted in October 1992, changes the manner in which cable number of personnel to undertake rate regulation. television systems that are not subject to effective competition are regulated. In general,rates for the jtacir servire tiPt(the tier required A franchise authority unable to answer"yes"to questions 4(a)or 4(b) as a condition of access to all other video services and containing, may wish to review the FCC's report and Order in Docket 92-266, among other services, local broadcast station signals and public, FCC 93-177 (released May 3, 1993) for further information on the educational, and public access channels)and associated equipment establishment of alternative federal regulatory procedures. will be subject to regulation by local or state governments ('franchising authorities"). Rates for cable programming services and 9. Question 5:Franchising authorities must have procedural regulations associated equipment(all services except basic and pay channels)will allowing for public participation in rate regulation proceedings. If a be subject to regulation by the FCC. Rates for pay channels franchising authority does not have these regulations already in place, (channels for which there is a specific per-channel or per-program it must adopt them within 120 days of certification and before it may charge)are not regulated. undertake rate regulation. 2. Only cable systems that are not subject to effective competition may 10. Question 6: Most cable systems are not subject to effective be regulated. Effective competition means that (a) fewer than 30 competition,as defined by the Cable Act. (The definition is included percent of the households in the franchise area subscribe to the cable •above and on the form.) The franchising authority may presume that service of a cable system;(b)the franchise area is(i)served by at least the cable system in its jurisdiction is not subject to effective two unaffiliated multichannel video programming distributors each of competition. which offers comparable video programming to at least 50 percent of the households in the franchise area; and (ii) the number of For purposes of applying the definition of effective competition(see households subscribing to programming services offered by Item 2 above),"multichannel video programming distributors"include multichannel video programming distributors other than the largest a cable operator, a multichannel multipoint distribution service, a multichannel video programming distributor exceeds 15 percent of direct broadcast satellite service, a television receive-only satellite the households in the franchise area; or (c) a multichannel video program distributor, a video dialtone service, and a satellite master programming distributor operated by the franchising authority for that antenna television system. A multichannel video programming franchise area offers video programming to at least 50 percent of the distributor's services will be deemed "offered" when they are both households in that franchise area. technically and actually available. Service is"technically available" when the multichannel distributor is physically able to deliver the 3. In order to regulate basic service tier rates, a franchising authority service to a household wishing to subscribe, with only minimal must be rectified by the FCC. In order to be certified, a franchising additional investment by the distributor. A service is "actually authority must complete this form. An original and one copy of the available' if subscribers in the franchise area are reasonably aware completed form and all attachments must be returned to the FCC through marketing efforts that the service is available. Subscribership by registered mail, return receipt requested, to the FCC at the pf those multichannel video programming distributors offering service address on the form. to at least SO percent of the households in a franchise area will be aggregated to determine whether at least 15 percent of the 4. A copy of the form must be served on the cable operator by first-class households in the franchise area are served by competitors. A mail on or before the date the form is sent or delivered to the FCC. multichannel video programming distributor must offer at least 12 channels of programming, at least one channel of which is 5. The franchising authority's certification will become effective 30 days nonbroadcast,to be found to offer"comparable"video programming. afmr_the_dalLstamped on the postal return fereipt unless otherwise notified by the Commission by that date. The franchising authority 11. This certification form must be signed by a government official with cannot begin to regulate rates, however,until it has actually adopted authority to act on behalf of the franchising authority. the required regulations(see below)gam{until it has notified the cable • operator that it has been certified and that it has adopted the required regulations. fa NOTICE TO INDIVIDUALS REQUIRED B1'THE PRIVACY ACT AND THE PAPERWORK 6. In order to be certified, franchising authorities must answer'yes'to REDUCTION ACT Questions 3,4, and 5,which are explained as follows: The solicitation of personal information in this forms authorized by the Communications Act of 1934,as amended. The Commission will use the information provided in this Ions to determine 7. Question 3: The franchising authority must adopt rate regulations it tae frandmie authority should be authorized to regulate cable rates. in reaching fait consistent with the Commission's regulations for basic cable service. de'ernma"on•w for lee'enforcen+eht purposes, it may became necessary to refer personal B information contained in this form to another government agency. MI information provided in this To fulfill this requirement for certification, the franchising authority fans,wan be evadable for public inspection. Your response it required to obtain the requested may simply adopt a regulation indicating that it will follow the authority. regulations established by the FCC. Public mooning burden for this collection of information is estimated so average 30 minutes, including the time for reviewing instructions, marching exiting data sources, gathering and The franchising authority has 120 days to adopt these regulations maintaining the data raided,and completing and reviewing the collection of information. Send after the time it is certified. The franchising authority may not, comments regarding this burden estimate a any other aspect of this collection of iMormation, however,begin to regulate cable rates until after it has adopted these inCluding sugge Nfa reducing the burden,Io the Federal corri u'nrcat'onsCommissi0"'Records regulations and until it has notified the able rotor that it has been Man+g�nt Division,AMDi1RS,Washington,D.C. 20554,and to the Office of Management and Budget,Paperwork Reduction Project(3060.0550),Washington,D.C. 20503. certified and has adopted the required regulations. THE FOREGOING NOTICE IS REQUIRED BY THE PRIVACY ACT Of 1974, P.L. 93-S79, 13. Question 4(a):The franchising authority's"legal authority'to regulate DECEAS1a 3l,1975,S U.S.0 33340.X3)AND THE PAPERwOtX REDUCTION ACT Of 1910, basic service must come from state law. In nom states nl oy the PA.96411,DECEMBa 11,1910,44 U.S.0 3307. Slate jaurattleumuagulaILLahkill= In those states, the state government should file this certification. Provisions in franchise agreements that prohibit rate regulation are ypjd,and do not prevent a franchising authority from regulating the basic service tier and associated equipment. _city an MEMO ' of eagan TO: CITY ADMINISTRATOR HEDGES FROM: ADMINISTRATIVE INTERN PRUITT, DATE: SEPTEMBER 10, 1993 SUBJECT: MOSQUITO ABATEMENT CONTROL Following Councilmember Pat Awada's concerns regarding the Metropolitan Mosquito Control District abatement program, an investigation into the type of spraying, the benefits, the chemicals used and their impacts, as well as the cost to the City of Eagan has been completed. From Recreation Staff's perspective, the mosquito control program is working well and is worth the expense. Primarily, the Metropolitan Mosquito Control District, MMCD, utilizes a pellet form of insecticide to control mosquito larvae early in the season. What Eagan Gains From MMCD The MMCD focuses on larval control in wetlands and other mosquito breeding places. Based on the site, and the number of mosquitos, MMCD adjusts the frequency and number of applications accordingly. The MMCD will also spray for mosquitos on request, in the case of special events. Dorothy Peterson, Supt. of Recreation, states she feels the City is getting their moneys worth with the mosquito control program. The MMCD, Metropolitan Mosquito Control District, may come to the City more than several times in one year. Following a heavy rain where standing water is left, mosquito larvae can hatch that may be 10-15 years old. The MMCD will return to the City to spread a pellet form of pesticide that can control that larvae. The MMCD utilizes a pellet form of pesticide most frequently that is spread early in the mosquito season. The aim is to create an inhospitable environment for the mosquito larvae in areas in which they typically thrive like swamps, and wooded areas. On March 1992, Dorothy Peterson met with Jim Strak of the Metropolitan Mosquito Control District regarding controlling mosquitos in Eagan parks. Eagan parks treated on a regular basis include: Blackhawk Thomas Lake Park Woodhaven Trapp Farm Park Pilot Knob Highline Trail O'Leary Northview Rahn Memo to Administrator Hedges September 10, 1993 Page 2 The only concern Dorothy Peterson stated was that periodically the MMCD should be met with to discuss what areas are in need for higher control, and those areas that can be that the areas listed below should limited for pesticides. Last year it was determined P Y receive lower levels of control: Wescott Station Burr Oaks Highview A limited amount of daytime spraying is done for special events like the July 4 Celebration. Ross Green, Public Information Officer for the District, has stated that a study by the Minnesota Health Department found the two sprays used on parks and other areas do not present health risks to humans. The study did caution against letting children inhale the spray over a long period. Spraying for adult mosquitos repeatedly can be detrimental to other so called "good bug" populations like butterflies. The City of Maplewood was concerned with this type of adult mosquito spraying and elected to opt out of adult mosquito spraying. The City also allowed their residents the opportunity to opt out of adult mosquito spraying for private residences. Main Chemicals Utilized When Spraying Eagan The main materials utilized when controlling mosquito larvae include Altosid Briquets, which contain Methoprene, and BTi Corncob Granules. The Altosid Briquets are placed in wetlands by hand. Leslie Phillips Livingston, a concerned citizen of North Oaks on mosquito control, provided a breakdown of the Briquet ingredients: Methoprene 1.8% & 98.2% inert ingredients. She also has researched documents on Methoprene: A 1991 E.P.A. re-registration document on Methoprene listed it as a 'Biochemical pesticide' with the following caveats: 'Methoprene can be characterized as very highly toxic to freshwater invertebrates' and 'the long term exposure resulting from the slow release briquette formulation is of concern to the Agency.'[The report further stated] 'Because Methoprene is an insect hormone that acts as an insect growth regulator, there is concern that important non target species may be adversely affected by chronic exposure to Methoprene.' The Bti Corncob Granule was also researched by Leslie Livingston. Bti is only .2% active ingredients of the granule. Undisclosed ingredients make up 99.8% of the granule. This insecticide is utilized to combat mosquito larvae by a bacterium that kills the mosquitos. Adult spraying is utilized for special events in parks. One insecticide utilized in Eagan is Permethrin. It is dispersed via a backpack sprayer. Another spray, dispersed at dusk or early morning hours, approximately 4:00-5:00 a.m., utilizes synthetic pyrethroids,which are similar to chrysanthemum flowers. This cold fog aerosol is sprayed throughout the specific areas mounted on the back of a pick-up truck. Permethrin has also been researched by Ms. Livingston. She has found: Memo to Administrator Hedges September 10, 1993 Page 3 Permethrin is a central nervous system poison which acts on the sodium channels in cell membranes and known to be highly toxic to fish and bees. It's toxic to most insects, but is reported to be especially effective against butterfly and moth species. Insect resistance has begun to be reported. [She also comments that the chemical is] non-biodegradeable, and is currently on a list of 35 pesticides that the EPA is working to restrict. Financial Breakdown In 1991, the levy figure for mosquito abatement in Eagan was .406. The tax rate in 1991 was only at 1.% for the initial $72,000 on a home, and 1.5% on the following amount up to $115,000. This equates to approximately $5.19 for a $100,000 house. In 1992, the levy figure for mosquito abatement for Dakota County was .405. This equates to approximately$5.18 for a$100,000 house. The city paid in a total of$180,885 for 1992 mosquito abatement. In 1993, the tax levy figure for mosquito abatement for Dakota County is .366. This equates to approximately $4.68 for a $100,000 house. The city's total payment for mosquito abatement is $162,868. Opting out of MMCD Cities may not opt out of the Metropolitan Mosquito Control District. The City of Maplewood has opted out of adult mosquito spraying with cold foggers. Maplewood Mayor Gary Bastian promoted this change for "They haven't shown that they [MMCD] have an appreciable effect on mosquito population." However, the City still participates in the Metropolitan Mosquito Control District program.