07/13/1982 - City Council SpecialSPECIAL CITY COUNCIL MEETING
TUESDAY
JULY 13; 1982
1. PLEDGE OF ALLEGIANCE'&;ROLL CALL.
2. PUBLIC HEARING FOR CONSIDERATION OF WATER TREATMENT PLANT
3: CABLE TELEVISION/RESOLUTION TO CONSIDER PROPOSED CONGRESSIONAL
LEGISLATION'
4. OTHER.
MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: JULY 12, 1982
SUBJECT: SPECIAL CITY COUNCIL MEETING
A special City Council meeting is scheduled for 7:00 p.m. on Tues-
day, July 13, 1982, at the City Hall. The purpose of the meeting
is to hold a public hearing for consideration of a water treatment
plant. The revised summary report on the water treatment project
as prepared by the consulting engineering firm of Bonestroo, Rosene,
Anderlik & Associates was enclosed as pages 185 through 214 of
your last City Council packet. For your convenience, another copy
is enclosed with several additional attachments in a special folder.
Included in the folder with the revised summary report are copies
of the survey that was mailed out as a part of a newsletter in
the fall of 1981 and the survey results. Also enclosed are a copy
of the minutes of the January 28, 1982 water treatment hearing
and copies of minutes with City Council action that was taken on
March 16, 1982 regarding the water treatment project. Since a
public hearing was held in January and considerable public input
and debate was allowed again in March, this hearing will be pre-
sented in twenty to thirty minutes which is somewhat streamlined
from the time taken for the first public hearing by the City staff.
The public hearing will, however, be close to a full presentation
similar to the hearing that was held in January. There will be
handouts available. A copy is enclosed in the attached folder.
There will be a slide presentation wbich will be shown on the wall
above the City Councilmembers to accommodate the audience. It
should be announced at the beginning of the meeting that a decision
is not scheduled for that evening due to the fact that the public
hearing was scheduled to provide an opportunity for input, questions
and answers and an opportunity to study all the facts and issues
by both the public and the City Council. That decision is to be
reached at a regular City Council meeting in the near future.
That meeting date is to be scheduled for July 20, August 3 or August
17. It is difficult for the City staff to determine how many people
will be present for the public hearing; however, extra chairs are
being planned for the City Hall, the windows will be open for over-
flow outside the facility. If there are more people in attendance
than the City Hall has capacity for, the City staff will do the
best they can to accommodate everyone in the presentation. If
any member of the City Council has any questions or would like
additional information about the public hearing and special City
Council meeting as it pertains to water treatment, please feel
free to contact the City Administrator at any time prior to the
meeting. Bob Rosene is on vacation and an associate with the con-
sulting firm, who actually wrote the report, will be present to
participate in the presentation with the City Administrator and
Director of Public Works.
Special City Council Meeting
July 12, 1982
Page Two
Cable Television Resolution
At the last Joint Cable Commission meeting held on Thursday, July
8, 1982, the consultant presented an action alert from the National
Federation of Local Cable Programmers entitled, "Substantial Revi-
sions of Coldwater Cable Bill Threaten Local Access Efforts and
Curtail Local Regulatory Controls". Enclosed is a copy of that
document. The newly amended cable bill proposed in the Senate
will severely limit local regulatory authority, threaten existing
franchise agreements and deal a crippling blow to non-commercial
access to cable according to the document. The Joint Cable Commis-
sion did take unanimous action directing the consultants to prepare
a letter of opposition to be mailed to the chairman of the Senate
subcommittee on telecommunications and Senators Boschwitz and Duren-
berger opposing the proposed legislation, claiming that cities
wish to retain local regulatory authority as it relates to cable
communications within their respective communities. City Council -
member Smith, the Council's representative on the commission, has
asked that this handout be copied to the entire City Council and
that similar action by the City Council be taken at the special
City Council meeting. The action is required as soon as possible
due to the fact input must be received prior to July 19, 1982 when
the draft bill will be submitted to the Senate Commerce Committee
for markup and amendments. The City has not received a copy of
the correspondence from Tom Creighton as of this date. However,
if it is available, copies will be handed out to the City Council
tomorrow evening and it is suggested that that position be taken
by the City Council with certain revisions.
Other Business
Once the public hearing is finalized on the water treatment plant
and action has been taken on the cable resolution, it is recommended
that the City Council take a break and reconvene in the council
chamber area to meet with Jack Boarman of Boarman Architects to
further discuss the City Hall project. As a reminder, the Citizen's
Advisory Committee has scheduled a meeting for 8:00 p.m. and will
be meeting in the general office area and should be completing
their meeting at approximately 9:00 to 9:15 p.m. in time for the
City Council to meet with Jack Boarman. If the committee meeting
is not completed by that time, the Council should feel free to
join the committee meeting in the general office area.
At the last City Council meeting, there was action taken to approve
a private placement for the Yankee Square office project. There
was discussion previous to that action that gave some consideration
to a letter of credit if the City Council would consider a modified
Special City Council Meeting
July 12, 1982
Page Three
public offering with an acceptable letter of credit offered as
additional security to the project. There was not official action
taken as to whether the Finance Committee should or should not
investigate the letter of credit in any further detail. The City
Administrator has requested a letter from Miller & Schroeder that
provides more details as to the mechanics of a letter of credit
if such a method is considered for future industrial revenue bond
offerings. A copy of that letter is enclosed as an attachment
to this packet. If the City Council would like to discuss the
issue, action should be taken to direct the Finance Committee to
study in further detail the letter of credit. Or if the City Coun-
cil feels they have had an opportunity to review the same facts,
it is possible if time permits that a discussion could transpire
at tomorrow night's meeting.
s/Thomas L. Hedges
City Administrator
Special Note: As of late this afternoon, the City Administrator
received a call from M & S that the letter is approximately five
pages in length and required final review by a representative of
Miller & Schroeder and would not be available for distribution
until tomorrow. Copies will be available at the meeting.
nauc^dtt,--.ZC1L-8^,n
(� (ON ALERT ACTION ALERT ACTION ALERT ACTION ALERT ACTION ALERT ACTION A
SUBSTANTIAL REVISIONS OF GOLDWATER CABLE BILL
THREATEN LOCAL ACCESS EFFORTS AND CURTAILS LOCAL
MARKUP: JULY 19 REGULATORY CONTROL
The staff of the senate subcommittee on telecommunications has
prepared an amended version of 5.2172, the cable bill introduced by
Senator Goldwater (R -AZ) on March 4. The newly amended cable bill
severly limits local regulatory authority, threatens existing franchise
agreements, and deals a crippling blow to noncommercial access to
cable.
Should the bill pass in its present form, local governments would
have 60 days to bring their existing franchise agreements into compliance
with the bill's terms.
ACCESS CHANNEL CEILING MANDATED
The amended bill will set a ceiling on all types of access channel
requirements, allowing local governments to require no more than 10%
of available channels to be set aside for noncommercial access. An
additional 10% of channels may be set aside for leased access. However,
• the"10% of available channels" may be figured only on the total number
of technically equipped channels less the number of channels carrying
"must -carry" signals. Systems with less than 20 channels would be exempt
from access requirements.
Existing franchises with higher access
grandfathered until the franchises expire or
any system may petition the FCC to waive the
there are "reasonably available alternatives
provide programing service to the public..."
put all access programming onto a composite
programming if the level of demand does not
FEDERAL PREEMPTION
requirements would be
are renegotiated. However,
access requirement, if
for persons desiring to
The operator may also
channel, with commercial
require a dedicated channel.
The bill gives exclusive jurisdiction over cable systems to the
Federal Government, except where the bill allows local jurisdiction
(i.e. over basic rates and non-commercial access rates). Any law in
effect which is in conflict with the provisions of the bill would be
superseded by the cable bill.
UNRESTRICTED CROSS OWNERSHIP
The bill prohibits the Federal government, state and local governments
from in any way prohibiting ownership of cable systems,"by reason
• of ...ownership in any other media interests" including networks,
broadcasters, newspapers, phone, etc. In effect, the bill does away
with any cross ownership restrictions now in existance on the Federal
and State levels.
NATIONAL OFFICE
906 Pennsylvania ?venue. SE
2
MUNICIPAL OWNERSHIP PROHIBITION UNLESS FAIR MARKET VALUE
The bill prohibits municipal ownership of cable systems unless the •
city has "aquired" the system at "fair market value," defined as the
ongoing value of the business plus "goodwill", which generally means the
value of the franchise or license rights. It is still unclear, as it
was in the first draft of this bill, whether or not cities must "buy back"
their own franchise rights if there is no system constructed yet, and
no franchise awarded.
FRANCHISE FEES LIMITED
The ameded bill requires the FCC to set a franchise fee ceiling
limited to covering only the cost of local regulation. However,
since the bill also limits local regulatory authority, and since local
governments are presumably prohibited from using franchise fees for
local programming support, the ceiling may be set lower than the present
3%. A city would be allowed to petition for a fee increase, but it
would have to show that it needed the extra monies to cover the costs
of local cable regulation. No franchise fees would be available for
general funds or for programming support.
AUTOMATIC FRANCHISE RENEWAL
The bill madates automatic franchise "renewal, provided that 1) the
system operator has not defaulted on the'franchise agreement, 2) there has been
material change in the operator's qualifications, and 3) the services
provided are "reasonable" in light of the size, nature, needs and
interests of the community, the age and status of the syste, and the comparabil-
ity of the system to others in similar size communities.
RATE REGULATORY AUTHORITY CURTAILED
Local governments would be prohibited from all rate regulation
of cable, except for the rates for basic service, and the rates for
public, educational and government access channels. Basic service,
however, is redefined in the bill to include only retransmission of
broadcast signals and noncommercial access signals.
NO GRANDFATHERING
Except for the access channel ceiling, and the foreign ownership provision,
no local franchises would be grandfathered from the effects of the bill, and must be
brought into compliance with the bill's provisions within 60 days. Although it
may be that the 60 day period can be extended, the agreements negotiated locally
would still be subject to renegotiation as a result of the no grandfathering
intent of the bill.
OTHER PROVISIONS
The bill also deals with signal piracy, privacy, and exempts
cable from equal time provisions and the fairness doctrine. It
requires reciprocity from foreign countries to allow their companies
to operate cable systems here.
3
NFLCP urges its members to contact the Senate Commerce Committee, local senators
and other elected officials informing them of their strong opposition to this;
bill. The NFLCP believes that this bill must be stopped. Moreover, it is the
position of the NFLCP that any cable legislation that curtails access or local
authority is inappropriate.
REASONS WHY WE MUST "KILL THE CABLE BILL"
1. The redraft of S 2172 is so altered from the original bill as to change the
prinicpal intent and substance. Therefore, we recommend this bill be halted
until these new issues are properly addressed. While the original sought to guide
cities, this draft intends to preempt control of cities over cable.
2. This draft would force communities and companies who have negotiated substantial
access provisions in good faith, to drop franchise requirements which exceed the
capacity levels in the bill. Moreover, programming support from franchise fees would
be eliminated. Communities who have awareded franchises, based in part on the level
of operator support of community access, face renegotiating far more limited access
support after the fact of competitive franchising.
3. The bill damages local efforts to effectively regulate and oversee cable
television. In. fact, the draft removes all regulatory power from the local
and state level, except for authority over the rates charged for basic retransmission
(local broadcast) services. Local communities who have finished the competitive
franchising process will be forced to renegotiate a less effective franchise with
the cable operator, and to automatically renew. -that company's rights unless default on
the scaled down franchise agreement occurs.
04. Moreover, with the elimination of all cross -ownership restrictions, local
governments will not be able to insure against local monopoly control of mass media.
Nor will the Federal government be able to control the increasing concentration of
ownership of media among a few, ver large media conglomerates.
5. The automatic renewal clause completely kills competition for franchises
which will expire in the 1980's and beyond, and will force cities to litigate any
noncompliance issues.
6. Local governments will lose most of their franchise fee revenues, and may
only use those they have for regulation. No administrative or programming
support can continue using franchise fees.
7. This bill ignores the public's First Amendment rights. For three years, in
HR 3130, S 898, S2172 and S2445, attempts have been made in Congress to protect
the industry's rights over those of the public. NFLCP is outraged that the publicls
rights of access to media are superseded by the rights of businesses to control what
the public will see and hear.
8. This bill has been written by the industry. There has been no real attempt on
the part of the Senate staff to respond to repeated presentations of evidence by
local officials and cable access users.
9. The bill raises several constitutional questions: 1) whether primary First
Amendment rights lie with the people or the cable company, 2) whether the Federal govern-
ment can force local governments to'renew franchises, and 3) whether the Federal
government can preempt existing contracts between cities and wheth companies.
10, Finally, all franchises must be brought into cc--Dliancs, i.e., renegotiated,
with the bill within 60 days. An extension of this time period will still
subject local franchises to renegotiation.
The draft of S. 2172 will be submitted to the Senate Commerce Committee do
for markup and amendments o Monday, July 19, 1982. We have approximately
6 working days to communicate our dissatisfaction to the Senate. Any of
the following actions you take will help.
HOW TO OPPOSE THE CABLE BILL
1) Send mailgrams or letters this week to the members of the Senate Commerce
Committee and to your senators asking that they vote down or "kill" this bill.
Mention two things:
a) your opposition to specific provisions (use the points on P. 3)
b) your current involvement in and commitment to access programmes.
2) Call your Senators and the Subcommittee Senators at their local or
Washington office to reiterate your position. Most offices keep tallies
of the calls and letters they receive on specific issues.
3) Send a copy of your letters or mailgrams to your mayor and other local
officials. Ask them to contact the Senate and reinforce -your position.
4) Copy the Action Alert and distribute it to your mailing list and others in
your area involved in access. Urge them to take all the steps above.
5) Send letters to editors of the local press. Get your press involved •
in this as a local political issue.
6) Use your cable system to discuss the bill and its impending effects.
Involve local, state and federal officials in access programs via
Interviews, debates, etc. Make them aware of access in their areas.
PLEASE DONIT DELAY IN TAKING THESE ACTIONS. YOUR LETTERS AND CALLS HAVE WORKED
IN THE PAST.
• WHO'S WHO ON THE HILL
SENATE COMMITTEE ON COERCE, SCIENCE AND TRANSPORTATION
SUBCOK41TTEE ON COMMUNICATIONS
`[ember/Room/Telephone Telecommunications
Legislative Aid
Barry M. Goldwater (R -AZ), Chairman Chris Courson
427 RSOB, 224-2235
Harrison H. Schmitt (R -%N) Pat Rogers
248 RSOB, 224-5521
Larry Pressler (R -SD) Mary Bierle
2104 DSOB, 224-5842
Ted Stevens (R -AK)
;lark Snyder
260 RSOB, 224-3004
Ernest F. Hollings (D -SC) Ranking Minority Member
Tom Cohen
115 RSOB,-224-6121
Daniel K. Inouye (D -HI)
Eric Lee
105 RSOB, 224-3934
• Wendell H. Ford (D -KY)
Martha Malony
4107 DSOB, 224-2541
Bob Packwood (R -OR) Ex -Officio
Chris Coursen
1321 DSOB; 224-5244
Slade Gorton (R -WA)
Cliff Webster
3326 DSOB
Howell Heflin (D -AL)
Mike Gillard
3107 DSOB
J. James Exon (D -NE) Rich Fitzimons
3313 DSOB
Russell B. Long (D -LA) Curley Dossman
217 RSOB
Bob Kasten (R -WI) Bob Ziemer
328 RSOB
Donald W. Riegle (D -MI) Steve Harris
6300 DSOB
- 2 -
Howard W. Cannon (D-Nev.)
5102 DSOB
John C. Danforth (R -MO)
460 RSOB
Gordy Fink
Walter McCormick
Jerry Cox
RSOB = Russell Senate Office Building, Washington, D.C. 20510
DSOB = Dirksen Senate Office Building, Washington, D.C. 20510
i
•
SPECIAL CITY COUNCIL MEETING
TUESDAY
JULY 13; 1982
1. PLEDGE OF ALLEGIANCE'&;ROLL CALL.
2. PUBLIC HEARING FOR CONSIDERATION OF WATER TREATMENT PLANT
3: CABLE TELEVISION/RESOLUTION TO CONSIDER PROPOSED CONGRESSIONAL
LEGISLATION'
4. OTHER.
MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: JULY 12, 1982
SUBJECT: SPECIAL CITY COUNCIL MEETING
A special City Council meeting is scheduled for 7:00 p.m. on Tues-
day, July 13, 1982, at the City Hall. The purpose of the meeting
is to hold a public hearing for consideration of a water treatment
plant. The revised summary report on the water treatment project
as prepared by the consulting engineering firm of Bonestroo, Rosene,
Anderlik & Associates was enclosed as pages 185 through 214 of
your last City Council packet. For your convenience, another copy
is enclosed with several additional attachments in a special folder.
Included in the folder with the revised summary report are copies
of the survey that was mailed out as a part of a newsletter in
the fall of 1981 and the survey results. Also enclosed are a copy
of the minutes of the January 28, 1982 water treatment hearing
and copies of minutes with City Council action that was taken on
March 16, 1982 regarding the water treatment project. Since a
public hearing was held in January and considerable public input
and debate was allowed again in March, this hearing will be pre-
sented in twenty to thirty minutes which is somewhat streamlined
from the time taken for the first public hearing by the City staff.
The public hearing will, however, be close to a full presentation
similar to the hearing that was held in January. There will be
handouts available. A copy is enclosed in the attached folder.
There will be a slide presentation wbich will be shown on the wall
above the City Councilmembers to accommodate the audience. It
should be announced at the beginning of the meeting that a decision
is not scheduled for that evening due to the fact that the public
hearing was scheduled to provide an opportunity for input, questions
and answers and an opportunity to study all the facts and issues
by both the public and the City Council. That decision is to be
reached at a regular City Council meeting in the near future.
That meeting date is to be scheduled for July 20, August 3 or August
17. It is difficult for the City staff to determine how many people
will be present for the public hearing; however, extra chairs are
being planned for the City Hall, the windows will be open for over-
flow outside the facility. If there are more people in attendance
than the City Hall has capacity for, the City staff will do the
best they can to accommodate everyone in the presentation. If
any member of the City Council has any questions or would like
additional information about the public hearing and special City
Council meeting as it pertains to water treatment, please feel
free to contact the City Administrator at any time prior to the
meeting. Bob Rosene is on vacation and an associate with the con-
sulting firm, who actually wrote the report, will be present to
participate in the presentation with the City Administrator and
Director of Public Works.
Special City Council Meeting
July 12, 1982
Page Two
Cable Television Resolution
At the last Joint Cable Commission meeting held on Thursday, July
8, 1982, the consultant presented an action alert from the National
Federation of Local Cable Programmers entitled, "Substantial Revi-
sions of Coldwater Cable Bill Threaten Local Access Efforts and
Curtail Local Regulatory Controls". Enclosed is a copy of that
document. The newly amended cable bill proposed in the Senate
will severely limit local regulatory authority, threaten existing
franchise agreements and deal a crippling blow to non-commercial
access to cable according to the document. The Joint Cable Commis-
sion did take unanimous action directing the consultants to prepare
a letter of opposition to be mailed to the chairman of the Senate
subcommittee on telecommunications and Senators Boschwitz and Duren-
berger opposing the proposed legislation, claiming that cities
wish to retain local regulatory authority as it relates to cable
communications within their respective communities. City Council -
member Smith, the Council's representative on the commission, has
asked that this handout be copied to the entire City Council and
that similar action by the City Council be taken at the special
City Council meeting. The action is required as soon as possible
due to the fact input must be received prior to July 19, 1982 when
the draft bill will be submitted to the Senate Commerce Committee
for markup and amendments. The City has not received a copy of
the correspondence from Tom Creighton as of this date. However,
if it is available, copies will be handed out to the City Council
tomorrow evening and it is suggested that that position be taken
by the City Council with certain revisions.
Other Business
Once the public hearing is finalized on the water treatment plant
and action has been taken on the cable resolution, it is recommended
that the City Council take a break and reconvene in the council
chamber area to meet with Jack Boarman of Boarman Architects to
further discuss the City Hall project. As a reminder, the Citizen's
Advisory Committee has scheduled a meeting for 8:00 p.m. and will
be meeting in the general office area and should be completing
their meeting at approximately 9:00 to 9:15 p.m. in time for the
City Council to meet with Jack Boarman. If the committee meeting
is not completed by that time, the Council should feel free to
join the committee meeting in the general office area.
At the last City Council meeting, there was action taken to approve
a private placement for the Yankee Square office project. There
was discussion previous to that action that gave some consideration
to a letter of credit if the City Council would consider a modified
Special City Council Meeting
July 12, 1982
Page Three
public offering with an acceptable letter of credit offered as
additional security to the project. There was not official action
taken as to whether the Finance Committee should or should not
investigate the letter of credit in any further detail. The City
Administrator has requested a letter from Miller & Schroeder that
provides more details as to the mechanics of a letter of credit
if such a method is considered for future industrial revenue bond
offerings. A copy of that letter is enclosed as an attachment
to this packet. If the City Council would like to discuss the
issue, action should be taken to direct the Finance Committee to
study in further detail the letter of credit. Or if the City Coun-
cil feels they have had an opportunity to review the same facts,
it is possible if time permits that a discussion could transpire
at tomorrow night's meeting.
s/Thomas L. Hedges
City Administrator
Special Note: As of late this afternoon, the City Administrator
received a call from M & S that the letter is approximately five
pages in length and required final review by a representative of
Miller & Schroeder and would not be available for distribution
until tomorrow. Copies will be available at the meeting.
nauc^dtt,--.ZC1L-8^,n
(� (ON ALERT ACTION ALERT ACTION ALERT ACTION ALERT ACTION ALERT ACTION A
SUBSTANTIAL REVISIONS OF GOLDWATER CABLE BILL
THREATEN LOCAL ACCESS EFFORTS AND CURTAILS LOCAL
MARKUP: JULY 19 REGULATORY CONTROL
The staff of the senate subcommittee on telecommunications has
prepared an amended version of 5.2172, the cable bill introduced by
Senator Goldwater (R -AZ) on March 4. The newly amended cable bill
severly limits local regulatory authority, threatens existing franchise
agreements, and deals a crippling blow to noncommercial access to
cable.
Should the bill pass in its present form, local governments would
have 60 days to bring their existing franchise agreements into compliance
with the bill's terms.
ACCESS CHANNEL CEILING MANDATED
The amended bill will set a ceiling on all types of access channel
requirements, allowing local governments to require no more than 10%
of available channels to be set aside for noncommercial access. An
additional 10% of channels may be set aside for leased access. However,
• the"10% of available channels" may be figured only on the total number
of technically equipped channels less the number of channels carrying
"must -carry" signals. Systems with less than 20 channels would be exempt
from access requirements.
Existing franchises with higher access
grandfathered until the franchises expire or
any system may petition the FCC to waive the
there are "reasonably available alternatives
provide programing service to the public..."
put all access programming onto a composite
programming if the level of demand does not
FEDERAL PREEMPTION
requirements would be
are renegotiated. However,
access requirement, if
for persons desiring to
The operator may also
channel, with commercial
require a dedicated channel.
The bill gives exclusive jurisdiction over cable systems to the
Federal Government, except where the bill allows local jurisdiction
(i.e. over basic rates and non-commercial access rates). Any law in
effect which is in conflict with the provisions of the bill would be
superseded by the cable bill.
UNRESTRICTED CROSS OWNERSHIP
The bill prohibits the Federal government, state and local governments
from in any way prohibiting ownership of cable systems,"by reason
• of ...ownership in any other media interests" including networks,
broadcasters, newspapers, phone, etc. In effect, the bill does away
with any cross ownership restrictions now in existance on the Federal
and State levels.
NATIONAL OFFICE
906 Pennsylvania ?venue. SE
2
MUNICIPAL OWNERSHIP PROHIBITION UNLESS FAIR MARKET VALUE
The bill prohibits municipal ownership of cable systems unless the •
city has "aquired" the system at "fair market value," defined as the
ongoing value of the business plus "goodwill", which generally means the
value of the franchise or license rights. It is still unclear, as it
was in the first draft of this bill, whether or not cities must "buy back"
their own franchise rights if there is no system constructed yet, and
no franchise awarded.
FRANCHISE FEES LIMITED
The ameded bill requires the FCC to set a franchise fee ceiling
limited to covering only the cost of local regulation. However,
since the bill also limits local regulatory authority, and since local
governments are presumably prohibited from using franchise fees for
local programming support, the ceiling may be set lower than the present
3%. A city would be allowed to petition for a fee increase, but it
would have to show that it needed the extra monies to cover the costs
of local cable regulation. No franchise fees would be available for
general funds or for programming support.
AUTOMATIC FRANCHISE RENEWAL
The bill madates automatic franchise "renewal, provided that 1) the
system operator has not defaulted on the'franchise agreement, 2) there has been
material change in the operator's qualifications, and 3) the services
provided are "reasonable" in light of the size, nature, needs and
interests of the community, the age and status of the syste, and the comparabil-
ity of the system to others in similar size communities.
RATE REGULATORY AUTHORITY CURTAILED
Local governments would be prohibited from all rate regulation
of cable, except for the rates for basic service, and the rates for
public, educational and government access channels. Basic service,
however, is redefined in the bill to include only retransmission of
broadcast signals and noncommercial access signals.
NO GRANDFATHERING
Except for the access channel ceiling, and the foreign ownership provision,
no local franchises would be grandfathered from the effects of the bill, and must be
brought into compliance with the bill's provisions within 60 days. Although it
may be that the 60 day period can be extended, the agreements negotiated locally
would still be subject to renegotiation as a result of the no grandfathering
intent of the bill.
OTHER PROVISIONS
The bill also deals with signal piracy, privacy, and exempts
cable from equal time provisions and the fairness doctrine. It
requires reciprocity from foreign countries to allow their companies
to operate cable systems here.
3
NFLCP urges its members to contact the Senate Commerce Committee, local senators
and other elected officials informing them of their strong opposition to this;
bill. The NFLCP believes that this bill must be stopped. Moreover, it is the
position of the NFLCP that any cable legislation that curtails access or local
authority is inappropriate.
REASONS WHY WE MUST "KILL THE CABLE BILL"
1. The redraft of S 2172 is so altered from the original bill as to change the
prinicpal intent and substance. Therefore, we recommend this bill be halted
until these new issues are properly addressed. While the original sought to guide
cities, this draft intends to preempt control of cities over cable.
2. This draft would force communities and companies who have negotiated substantial
access provisions in good faith, to drop franchise requirements which exceed the
capacity levels in the bill. Moreover, programming support from franchise fees would
be eliminated. Communities who have awareded franchises, based in part on the level
of operator support of community access, face renegotiating far more limited access
support after the fact of competitive franchising.
3. The bill damages local efforts to effectively regulate and oversee cable
television. In. fact, the draft removes all regulatory power from the local
and state level, except for authority over the rates charged for basic retransmission
(local broadcast) services. Local communities who have finished the competitive
franchising process will be forced to renegotiate a less effective franchise with
the cable operator, and to automatically renew. -that company's rights unless default on
the scaled down franchise agreement occurs.
04. Moreover, with the elimination of all cross -ownership restrictions, local
governments will not be able to insure against local monopoly control of mass media.
Nor will the Federal government be able to control the increasing concentration of
ownership of media among a few, ver large media conglomerates.
5. The automatic renewal clause completely kills competition for franchises
which will expire in the 1980's and beyond, and will force cities to litigate any
noncompliance issues.
6. Local governments will lose most of their franchise fee revenues, and may
only use those they have for regulation. No administrative or programming
support can continue using franchise fees.
7. This bill ignores the public's First Amendment rights. For three years, in
HR 3130, S 898, S2172 and S2445, attempts have been made in Congress to protect
the industry's rights over those of the public. NFLCP is outraged that the publicls
rights of access to media are superseded by the rights of businesses to control what
the public will see and hear.
8. This bill has been written by the industry. There has been no real attempt on
the part of the Senate staff to respond to repeated presentations of evidence by
local officials and cable access users.
9. The bill raises several constitutional questions: 1) whether primary First
Amendment rights lie with the people or the cable company, 2) whether the Federal govern-
ment can force local governments to'renew franchises, and 3) whether the Federal
government can preempt existing contracts between cities and wheth companies.
10, Finally, all franchises must be brought into cc--Dliancs, i.e., renegotiated,
with the bill within 60 days. An extension of this time period will still
subject local franchises to renegotiation.
The draft of S. 2172 will be submitted to the Senate Commerce Committee do
for markup and amendments o Monday, July 19, 1982. We have approximately
6 working days to communicate our dissatisfaction to the Senate. Any of
the following actions you take will help.
HOW TO OPPOSE THE CABLE BILL
1) Send mailgrams or letters this week to the members of the Senate Commerce
Committee and to your senators asking that they vote down or "kill" this bill.
Mention two things:
a) your opposition to specific provisions (use the points on P. 3)
b) your current involvement in and commitment to access programmes.
2) Call your Senators and the Subcommittee Senators at their local or
Washington office to reiterate your position. Most offices keep tallies
of the calls and letters they receive on specific issues.
3) Send a copy of your letters or mailgrams to your mayor and other local
officials. Ask them to contact the Senate and reinforce -your position.
4) Copy the Action Alert and distribute it to your mailing list and others in
your area involved in access. Urge them to take all the steps above.
5) Send letters to editors of the local press. Get your press involved •
in this as a local political issue.
6) Use your cable system to discuss the bill and its impending effects.
Involve local, state and federal officials in access programs via
Interviews, debates, etc. Make them aware of access in their areas.
PLEASE DONIT DELAY IN TAKING THESE ACTIONS. YOUR LETTERS AND CALLS HAVE WORKED
IN THE PAST.
• WHO'S WHO ON THE HILL
SENATE COMMITTEE ON COERCE, SCIENCE AND TRANSPORTATION
SUBCOK41TTEE ON COMMUNICATIONS
`[ember/Room/Telephone Telecommunications
Legislative Aid
Barry M. Goldwater (R -AZ), Chairman Chris Courson
427 RSOB, 224-2235
Harrison H. Schmitt (R -%N) Pat Rogers
248 RSOB, 224-5521
Larry Pressler (R -SD) Mary Bierle
2104 DSOB, 224-5842
Ted Stevens (R -AK)
;lark Snyder
260 RSOB, 224-3004
Ernest F. Hollings (D -SC) Ranking Minority Member
Tom Cohen
115 RSOB,-224-6121
Daniel K. Inouye (D -HI)
Eric Lee
105 RSOB, 224-3934
• Wendell H. Ford (D -KY)
Martha Malony
4107 DSOB, 224-2541
Bob Packwood (R -OR) Ex -Officio
Chris Coursen
1321 DSOB; 224-5244
Slade Gorton (R -WA)
Cliff Webster
3326 DSOB
Howell Heflin (D -AL)
Mike Gillard
3107 DSOB
J. James Exon (D -NE) Rich Fitzimons
3313 DSOB
Russell B. Long (D -LA) Curley Dossman
217 RSOB
Bob Kasten (R -WI) Bob Ziemer
328 RSOB
Donald W. Riegle (D -MI) Steve Harris
6300 DSOB
- 2 -
Howard W. Cannon (D-Nev.)
5102 DSOB
John C. Danforth (R -MO)
460 RSOB
Gordy Fink
Walter McCormick
Jerry Cox
RSOB = Russell Senate Office Building, Washington, D.C. 20510
DSOB = Dirksen Senate Office Building, Washington, D.C. 20510
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