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Home My WebLink About2.A. Jeffrey Feldman, FTTH ROSEN4OUNT EXECUTIVE SUMMARY CITY COUNCIL City Council Special Meeting: December 14, 2011 AGENDA ITEM: Jeffrey Feldman, FTTH G NDA ECTION: PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. Z • -A. ATTACHMENTS: Letter to Mr. Feldman APPROVED BY: RECOMMENDED ACTION: Discuss with Mr. Feldman the current status of operations and franchise requirements and future plans. BACKGROUND At a recent work session, staff informed the Council that FTTH may not achieve full compliance with franchise requirements by the end of 2011, even though progress has been made on some of them. Staff proposed that the next step would be a letter to Mr. Feldman of FTTH. The letter is attached and outlines information from staff about the current status of FTTH in meeting franchise requirements. DISCUSSION I spoke with Mr :Feldman over the phone after the last work session discussion. He has reported some company issues with the FCC that may affect his ability to move ahead with system improvements and expansion although the outcome of this matter is'not known at this writing. In addition, the economy is in a very slow recovery from a deep recession. These matters could be relevant because the franchise ordinance has language that allows the City to waive the requirements "upon occurrence of unforeseen events or acts of God." At the same time, Mr. Feldman has some interest in moving ahead the best he can, but is concerned about proceeding with further investments if the City is considering "pulling the plug" on his franchise in the coming months. Therefore, he offered to visit with the City Council about these issues and he is able,to be in town for this workshop meeting. 4 ROSEMOUNT MINNESOTA November 23, 2011 Mr. Jeffrey Feldman One Executive Drive Fort Lee, NJ 07024 Dear Mr. Feldman: As I have indicated to you over the phone, I am writing about the status of the franchise obligations of FTTH in Rosemount. As you know, the City franchise agreement approved in January, 2010 contains several obligations for FTTH. One of the provisions required certain public programming channels to be provided over the system within six months. This included the Rosemount channel (Charter channel 22), the Apple Valley and Farmington Channel (Charter channel 16), the PEG access channel (Charter channel 12), and the School District 196 channel (Charter channel 10). In addition, state law requires that the metro regional channel be carried also (Charter channel 6). We are happy to note your recent progress in getting the first three channels working on FTTH (Charter channels 22, 16, and 12). Charter channels 10 and 6 should also be added to be in full compliance with this part of the franchise ordinance. Another franchise provision required that a $10,000 Letter of Credit be delivered to the City. The City confirms that a $10,000 check has been deposited with the City, thereby meeting this requirement. Finally, the franchise ordinance required that an additional 800 dwelling units be passed with energized trunk cable by December 31, 2011. Although we understand that you have extended service to the apartments at Waterford Commons in downtown Rosemount and installed conduit in some new development areas, it is unclear if fiber is available to these residents. We are not aware of any other significant progress toward this goal at this date. As you know, you are scheduled to meet with the Mayor and City Council and their next workshop meeting on Wednesday, December 14th at 6:30 .m. at City Hall. We would appreciate hearing Y Pp g our your and plans for FTTH system including the unmet franchise requirements noted above. Sincerely, Dwig t D. Johnson City Administrator Attachment: amendment to FTTH franchise ordinance dated January 19, 2010 SPIRIT OF PRIDE AND PROGRESS Rosemount City Hall • 2875 145th Street West • Rosemount, MN 55068 -4997 651- 423 -4411 • TDD /TTY 651 - 423 -6219 • Fax 651- 423 -5203 www.ci,rosemount.inn.us k CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING THE FTTH CABLE FRANCHISE, ORDINANCE NO. XL31 THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS as follows: Section 1. Rosemount Ordinance No.XI.31, Section 6, paragraph 1 is amended as follows: Public, Educational and Government Access. d. Grantee will cable cast all PEG access programming produced by the City or City's designee. The Grantee will maintain the live video feed from City Hall. In addition, within 6 months of the franchise transfer the Grantee will begin cable casting ISD 196 Channel 10 and will provide or obtain a live video feed or connection froth Apple Valley City Hall and cable cast PEG access programming produced by the Apple Valley, Farmington Rosemount Cable Commission including Rosemount /Dakota County Channel 22, Apple Valley /Farmington Channel 16 and the public access channel produced by the Cable Commission. Grantee shall present a plan and timetable for obtaining and cable casting Regional Channel 6. Grantee shall be responsible for the cost of obtaining the foregoing program feeds or connections, and the cost of any equipment necessary to cable cast such programming. Any PEG programming originated from FTTH facilities will be provided to all public buildings Section 2. Rosemount Ordinance No.XI.31, Section 8, paragraph 2 is amended as follows: Letter of Credit. a. At the time of acceptance of this Franchise, Grantee shall deliver to the City an irrevocable and unconditional Letter of Credit, in form and substance acceptable to the City, from a National or State bank approved by the City, in the amount of Ten Thousand Dollars ($10 ,000.00). (Remainder unchanged] Section 3. Rosemount Ordinance No. XI.31, Exhibit C is amended as follows: EXHIBIT C Exhibit C is a map showing the location of Grantee's system as constructed as of January 1, 2010. The City and Grantee acknowledge that the Grantee has applied for necessary governmental � pp �Y g ove permits, licenses, certificates, and authorizations in order to construct a system serving the City and that such system construction is underway as of the date of the granting of this franchise. Grantee shall continue to apply for permits associated with work y p th w rk in specific portions of the right-of-way as construction r oceeds. � Y p Energized trunk cable must be extended substantially throughout the Area depicted on Exhibit o an additional 800 — dwelling units must be completed by December 31, _ 2011. Persons along the route of the energized cable must have individual drops as desired during the same period of time. Thereafter, the system shall be extended throughout the remainder of the City consistent t with the Franchise and in accordance with Minnesota Statutes, Section 238.084. Construction phases must result in a minimum of installations of service to at least 500 new dwelling nits per year after 2011 and the Rosemount g p y Business Park. Upon completion of system construction, Grantee will extend its system and services in accordance c' with Section 2.7 of the Franchise. The requirements herein may be waived by the City upon occurrence of unforeseen events or acts of God. The City Th C may only f t9 Y nlY agree to such modifications by amendment to this Franchise. Section 4. Rosemount Ordinance No.XI.31, Exhibit B and deleted and replaced with the following: Insert new current service area map and future service area. Section 5, This Ordinance shall be in effect following its passage and publication. ADOPTED this day of , 2010, by the City Council of the City of Rosemount CITY OF ROSEMOUNT William H. 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