HomeMy WebLinkAbout2.e. FTTH/Rudder Franchise Violation LetterAGENDA ITEM: FTTH /Rudder Franchise Violation Letter
AGENDA,SECTION:
DiWISSi WI
AGENDA NO. e.
PREPARED BY: Dwight Johnson, City Administrator
ATTACHMENTS: Draft Violation Letter
APPROVED BY:
NU
RECOMMENDED ACTION: Review attached draft violation letter, make any necessary
changes, and direct staff to place this item for approval at the March 18 council meeting.
4 ROSEMOUNT
CITY COUNCIL
City Council (meeting type): Month 00, 0000
EXECUTIVE SUMMARY
ISSUE
The Council should review the draft violation letter to FTTH /Rudder.
BACKGROUND
At the January work session, staff preliminarily advised the Council that FTTH /Rudder appeared to be in
substantial violation of its franchise agreement, including the modifications made to the franchise
agreement in January, 2008. Staff was directed to draw up a formal notice of violations to be sent to the
company.
The violations we are alleging include failure to build out the system as required, failure to provide a letter
of credit, failure to provide various types of government and education access and programming, and
failure to pay franchise and PEG fees. Since the January meeting, staff has also been made aware of a
mechanic's lien notice from one of the company's subcontractors.
Attorney Robert Vose of Kennedy and Graven has drafted the attached violation letter for your review.
The facts have been reviewed by Engineer Andy Brotzler, Finance Manager Jeff May, and
Communications Coordinator Alan Cox. We believe the letter properly details all of the violations of the
franchise agreements and also provides a time period for the company to respond.
Council is requested to review the letter, and if no changes are needed, direct staff to place this item on the
March 18 agenda for approval.