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
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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
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_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.