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Home My WebLink AboutAgenda Packet 01/22/2002 UTILITY ADVISORY P-OMMITTE£ ¢tPEOIAL HEETING PUBLIC WOI~KB OONFERENOE RDDM aANMARY ~ ~ ~:00 P.M. AGENDA J. P-ALL TO I-IRDEI~ Il. R{3LL P. ALL Executive Session Call to Order: (,~- Members Present: Dean Reed Karen Rogers (Council) Orville Campbell (Council) --V~' Allen Bentley, Chairman W'" Vice Chairman Lauren Erickson (Council) ~ Glenn Wiggins (Alternate) (Council) StaffPresent: Mike Quiytn Craig Knutson Glenn Cutler Ken Ridout Scott McLain Gary_ Kenworth,/ Lam, Dunbar V'r Cate Rinehart Adjourn to Executive Session ~,: V ~ PM Ad. ioum to Regular Session bf: ~/'O PM pORTgrqgELES WASHINGTON, U.S.A. CITY MANAGER'S OFFICE NOTICE OF SPECIAL MEETING UTILITY ADVISORY COMMITTEE NOTICE IS HEREBY GIVEN that the Utility Advisory Committee, a subcommittee of the Port Angeles City Council. will hold a special meeting on Tuesday, January 22, 2002. at 3:00 p.m., in the Public Works Conference Room at City Hall. 321 East Fifth Street. The purpose of the special meeting is to conduct an Executive Session. Becky J. Upton City Clerk Distribution: City Manager Utility Advisory Committee Peninsula Daily News KONP Radio Peter Ripley Peninsula News Network Front Lobby (Post) 321 EAST VI FTH STREET ® P O. BOX 1 !50 ® PORt ANGELES WA 98362-0217 PHONE 360 ~17-4500 ® FAX: 360-417~4509 ® TTY: 360-417-4645 E-MAIL: CITY MG F~CI. PO F~T-ANG E LES.WA. US WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: January 18, 2002 TO.' UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT: Northland Cable Television Franchise Renewal An executive session of the Utility' Advisory Committee has been scheduled to discuss potential litigation concerning the cable television franchise renewal The meeting will be held on Tuesday, January 22, 2002, beginning at 3:00PM in the Public Works Conference Room. Attached please find the following pre-reading materials: A. "Formal" franchise renewal process under federal cable act. B. Confidential attorney/client privilege communication. C. Northland franchise renewal chronology. D. Chronology documents. The City's technical and legal consultants, Mr. Richard Li, Metropolitan Communications Consultants and Mr. Clarence West, Winstead, Sechrest & Minick, will join our meeting via conference call. A "FORMAL" FRANCHISE RENEWAL PROCESS UNDER FEDERAL CABLE ACT (47 U.S.C. § 546) Renewal Request and Public Proceeding: 47 U.S.C. § 546(a)(1). "If the cable operator submits, during such 6-month period, [which begins with the 3 6th month before the franchise expiration] a written renewal notice requesting the commencement of... a proceeding [which affords the public in the franchise area appropriate notice and loarticipation for the purpose of (A) identifying the future cable-related community needs and interests, and (B) reviewing the performance of the cable operator under the franchise during the then current franchise term], the franchising authority shall commence such a proceeding not later than 6 months after the date such notice is submitted." (Emphasis Added) STEP 1. Cable Operator May Make a Request for Renewal of the Franchise Between 30 Months and Up to 36 Months Before Expiration. Northland Renewal Request was timely submitted on October 3, 2000 STEP 2. Within 6 Months of Request for Renewal City Shall "Commence" Community Cable-Related Needs Assessment Report Port Angeles timely commenced the Needs Assessment prior to the 6-month deadline of April 1,2001. Request for Proposal: 47 U.S.C. § 546(b)(1)-(3). "(i) Upon completion of a l~roceeding ... a cable operator seeking renewal of a franchise, at the request o fa franchising authority may.., at the request of a franchising authority, submit a prot~osal for renewal. (2) ... any such proposal shall contain such material as the franchising authority may require, including proposals for an upgrade of the cable system. (3) The franchising authority may establish a date by which such proposal shall be submitted." (Emphasis Added) STEP 3. Completion of Needs Assessment. Port Angeles completed the Needs Assessment on September of 2001. Once Needs Assessment Report is "Complete", City May Request a Formal Franchise Proposal from the Cable Operator or Cable Operator May Submit One Port Angeles set date of October 1,2001 as deadline for formal franchise proposal from Cable Operator by council action of September 18, 2001 and notified Cable Operator. Preliminary Assessment Not to Renew: 47 U.S.C. § 546(c)(1). "Upon submittal by a cable operator of a proposal to the franchising authority for the renewal ora franchise pursuant to subsection (b) of this section, the franchising authority shall provide prompt public notice of such proposal and, during the 4-month period which begins on the date of the submission of the cable operator's proposal pursuant to subsection (3) of this section, renew the franchise or, issue a preliminary assessment that the franchise should not be renewed and, at the request of the operator or on its own initiative, commence an administrative proceeding, afier providing prompt public notice of such proceeding, in accordance with paragraph (2) to consider whether... (D) the operator's proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests." (Emphasis Added) STEP 4. City Council Makes Preliminary Assessment not to Renew - Four Months After Proposed Franchise From Cable Operator Port Angeles must make the preliminary assessment by February 19, 2002 on the formal October proposal of Northland. Only Four Statutory Reasons for Denial: (1) Cable Operator's proposed franchise does not "reasonably" meet the Cable Needs Assessment Report. [Most likely grounds for denial.] (2) Operator does not have legal, technical or financial qualifications to operate cable system. (3) After notice of non-compliance and a reasonable opportunity to cure there remains a material non-compliance with the existing franchise. (4) After notice and a reasonable opportunity to cure there remains a material quality of service issue that has not been corrected. [If denial, go to Step 5 - City Administrative Proceeding] STEP 5. Administration Hearing by the Citw A. City conducts an ADMINISTRATIVE PROCEEDING, before a Heating Examiner selected by the City (or it could be City Council) which includes participation by the City and Cable Operator, with a transcript: The heating is to give the Cable Company the opportunity to present evidence on whether the cable operators' proposal is reasonable to meet the Cable-Related Community Needs as set forth in the Assessment Report. (Based on a Denial under Item #1) B. If Hearing Examiner Used: Administrative Hearing Record to City Council for a Decision by Council on reasonableness of proposal based on Record of the Administrative Hearing. [If denial, go to Step 6] STEP 6. Federal District Court CABLE ACT ALLOWS APPEAL BY CABLE OPERATOR to Federal District Court on the record on whether the City denial was reasonable, with the Court giving some deference to the City Decision, i.e., was it reasonable for the City to deny the cable operator's proposal based upon the proposal not reasonably meeting the future cable- related community needs taking into consideration the cost. NOTE:Purchase of System Under Federal Law: [Only if the "denial" is upheld by the Federal Court may the City purchase the cable system, and only then, at "fair market value," which may be between $10 million and $20 million based on a $3,600/per subscriber small system sale in the Houston area, (Cable Act, Sec. 626 - 47 U.S.C. § 547)] Recent Case Law: Cases Upholding Denials: Rolla Cable System v. City of Rolla, 761 F.Supp. 1398 (E.D. Mo.-E.Div. 1991). Upheld denial on the record-not de novo. Union CATV, Inc. v. Sturgis, Ky, 107 F.3rd 434, (6th Cir. 1997). Upheld denial, gave deference to City; cable operator proposal was not reasonable. Cases not Upholding Denials: Eastern Telecom Corp. v. Borough of East Cenemaugh, 872 F.2nd 30 (3rd Cir. 1989). City deadline for proposal was not lawful under state law so denial was not lawful. Cases not on merits but on Cable Renewal: Cablevision of the Midwest v. City of Brunswick, 117 F.Supp. 2® 658 CN.D. Ohio - E. Div. 2000) - Denied City Motion to Dismiss. AUSTIN_lS181291~2 01/14/2002 - 9999934318 -3- ~ ~c~ ~ ~ ~ . ~ m o~ > ~ ~ ~ ~ .Em m ~ ~ _ ~ c8 m--cc ~ o ~'- == o.~ ~ ~ E ~ E ~z ~ o ~ .-- 0 0 0 ~ 0 o ~ 0 o 0 ~ o ~ 0 Z ~ 0 · B BLE TELEVISION. CHRONOLOGY DOCUMENTS po ?A WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: September 29, 2000 TO: UTU.rrY ADVISORY COMMIT'I~ FROM: Scott McLaln~ Deputy Director of Power Systems Lam] Dunbar, Power Resources Manager S~mc'r: Community Telecommunications Action Plan ~ Staff and Richard C.T. Ii, P.E., with Metropolitan Communication~ Consultants will nesmt a report on telecommunications planning and fiber-optic backbone development. Thc )resentation will highlight the telecommunications planning the City has done, diacu~ additional )ianning needs and development opportunities, and share the specific actions the City should take wer the next three-ye, ar period. ,~eco~mendatioR: The report will be presented with no action requested at this.time. Background / Analysis: The City recently engaged Metropolitan Communications Consulta~ (MCC) to prepare a plan of action to guide Staff with telecommunications plantinE and development efforts. The City Council's current and p~oposed 2001 telecommunications goals, applicable policies and regulations related to telecommunications, and the 2/10/2000 Power Enginoe~ report "Communications Systems Evaluation for Public Utility District No. 1 of Clallam Coun~ and the ~" were evaluated by MCC. The report summerizes the telecommunications planning the City has done, identifies additiollal planning needs and telecommunications development opportunities, and describes specific actions the City should take over the next three- year period. A complete copy of the report is located in attachment "A". A copy of the action plan milestones and timeline is located in attachment "B" Telecommunications ordinance The 1996 Telecommunications Act and Senate Bill 6676 have re-regulated the telecommttilications industry at the federal and state levels. The intents of the new laws are to encourage competition and the deliveryofadvanced telecommunications services. The new laws define municipal authority and responsibility related to management of public right-of-way. The City is currently developing but has not yet completed comprehensive telecommunications ordinances. A comprehensive approach includes a master telecommunications ordinance that would reference other ordinances such as right- 1 of-way construction, licensing and taxat/on, pole attschmants (new) and wireless facility siting (new). Once comprehensive ordinances are drafted, telecommunications service providem will be afforded a ~view and comment period. Afterwards, an outside expert legal review would be completed to ensure the City has c/early defined but not exceeded its authority. Prior to adoption of comprehensive telecommunications ordinances, new telecommunications service pwviders (if any) may receive interim consent to utilize municipal fight-of-way and must agree to comply with the City's future ordinances. ARer the new telecommunications ordinance and updates to effected ordinance are adopted, Staff will be able to respond to new master p¢~uiit requests and have an application review process in place and be in full compliance with federal and state law. Telecommunications n~.,~eds and i~ter~t~ assessment On 10ll/1988, the City granted a l$-year cable television franchise to Port Angeles Telecable, Inc. (presently Northland Cable Television) that will expire on 10/1/2003. As defined by the Cable, Communications Act's franchise, renewal procedure, the City must choose the formal renewal process to preserve ils right to deny fianchise renewal if negotiations are not successful. For the -- formal procedure, a future needs and interests assessment is required~ The assessment is the first step in the renewal process, which must be initiated during a six-month window (no earlier th~,n l 0/1/2000 but no later than 4/1/2001). The Cable Operator (Northland Cable Television) will be charged a fee to help offset the City's costs of renewing the franchise. Staff's position is that the assessment should address all telecommunications needs and interests of the commun/ty. The assessment will provide public involvemmt into City decision making for the next cable television franchise' and the expansion, operation and. man ~ ~ent.of a'liber-opt/c backbone, and the provision o£ telecommur~cafions sevviv~. As part of the franchise renewal, there is a parmersh/p opportun/ty w/th the Cable Operawr to expand the fiber-optic backbone into an institutional network for governmental, educational and other public purposes. The partnersh/p opportun/ty could enable expansion of the fiber-optic backbone to inexpensively reach customer~tsubscribers too. After the new cable television franchise is adopted, Staffwill manage the fl-anchise to ensure that commun/ty needs and interests are satisfied. Fiber-ol)ti¢ backbone desig~ and construction Last year, the City and Clallam County PUD engaged Power Engineers, Inc. to review the commun/cations needs and to deterrtfine the feasibility of build/nE a//bet-optic backbone w/thin the service areas of both ent/ties. On 3/16/2000, Staff made an/nformational report to Council sununarizing Power Engineers' preliminary engineering, cost estimates and proposed route for. the fiber-optic backbone. The PUD recently reported that they have proceeded with fiber-optic backbone design and will order fiber-optic cable in the near future. The prel'mainary engineer's estimated cost to construct a 25-mile fiber-optic backbone in Port Angeles was $1,500,000. The cost of an infrastructure from nodes to sites and necessary equipment to activate the network ale not included. A copy of the report's Executive Summary, Conclusions and preFuninary backbone route map are attached in attachment "C". A complete copy of the ~port is available for inspection in the Public Works Office. 2 Based on Council goals and the Power Engineers prel/minary planning, Staffis inclined to recommend the City develop a fiber-optic backbone in Port Angeles. Funding for the fiber-optic backbone and associated business planning is available within City electric utility reserves. The tim stage of activation would include short-term lease of segments of the fiber-optic backbone for point-to-point commun/cat/ons. For mun/cipal facilities, the first stage of activation will also /nclude local access network cabling and required edge de,rices. The second stage of act/vation would include the purchase of transport, pr~mise and other equipment for use by prospective core customer~. The fiber-optic backbone will meet the high-bandwidth needs that many new businesses require. Once the results of the assessment are available and the Utility Advisory Committee and City Council reach decisions, expansion of the network and purchase of additional transport and premise equipment would be made on a network-wide basis; The business plan will need to be updated for each stage of activation and after decisions are reached based on the needs and interests assessment. Ecenomi¢ DevelOpment ]~ach component of the Telecommunications Plam~g and Development Action Plan has an effect on economic development. The future telecommunications ordinance will need to be probusiness and treat telecommunications operators in a fair and nondiscri~inntory manner without creating any bm-r/ers to entry. The new cable communications franchise must be responsive to community needs and interests taking into account the cost of meeting such needs and interests. It will be critical to involve and inform the Utility Advisory Committee, the Economic Development Committee (Port Angeles Works!), business and current and prospective service pwv/ders during the design o£the fiber-optic backbone. In a~ldition, ~con0mic development stakeholders need to be actively engaged in the telecommunications future needs ' and interests assessment to maximize the benefits the fiber-optic backbone will/,tovide the To the extent possible, the Community needs and interests obtained from the FairPoint Communications BridgeWorkss~ community development progrnm~ E-Nabled Visions internee and e-commerce ~port and Unisys internee gateway/portal will be incorporated or coordinated with the City's telocommunications futlu'e needs and interests assessment. This will ellmlnnts duplication of efforts where possible. Partnership Opportunities The Power Enginee~ study highlighted that economic development could be stimulated by n~ . advanced telecommunications network, that only minimal capital cost savinF~s are available from joint development of a 1.7 to 5.3 mile segment of the fiber-optic backbone through the City, and. significant benefits and cost savings opportunities may exist for joint operation and maintenance of a fiber-optic backbone. Staff will continue to explore these cost saving opportunities with the PUD. Staffwill plan to interconnect the City's fiber-optic backbone w/th the PUD, Northwest Open Access Network ('NoaNe0 and other networks for telecommunications services outside of the City. NoaNet isan open access network that will enable multiple telecommunications service pwviders to deliver services to customers. It is anticipated that the open access network will have a significant impact on economic development by enabling h/gh-speed and competitively priced ~elecommunications services. 3 Tentative Staff Recommendations On October 9, 2000, Staffwill present detailed information to the Utility Advisory Coramitten requesting their recommendation to council for: 1. Technical and legal services to assist Staff to complete a new telecommunications ordinance and update other effected City ordinances including a scope of work, time line and consulting services proposal. 2. Technical and legal services to assist Staff to complete a telecommunications future needs and interests assessment including a scope of work, 6me line and consulting services 3. Technical and legal services to assist Staff'to complete a business plan for the fiber-optic backbone and updates as needed for each stage of activation. 4. A request for qualifications for engineering services for design documents including a scope of work, time line and estimated budget. Once thc design is complete, Staff would call for bids to construct a 25-mile fiber-optic backbone within thc City. 5. Recognizing the long lead times required to purchase fiber-optic cabling, Staffwould initiate thc purchase through a call for bids or piggyback on a public utility purchase via inter]ecal agreement. . After responses to the above action items ar~ received, Staffwill return to thc Utility Advisory Committee with detailed cost estimates and funding source recommendations, scope of work, proposed contracts. Attachments: A Commun/ty Telecommurgcations Action Plan B Action Plan Milestones and Timelines C Power Engineers Report Executive Summary & Conclusions 4 NORTHLAND TELEVISION 725 East Fimt St. R E C E I V E D Pod Anoeies, WA 96362 (360) 452-~466 ~ Fax (~o) 4s?-5~m ~ OCT O5 2000 Ci~ Of Port Angeles The l-lo~or~ble l,an'y l:)oyl~ Mayor, City of Port Angeles Post Office Box ~150 Port Angeles, WA 98362 Re: Northland Cable Telev/sion, Ina ("Northland')/C./ty of Port Angeles, Wash/hErOn , Request for Franchise Renewnl. Dear Mayor Doyle: Our recent records i~dkate that the cable television franchise ord/nance, passed Dt~nb~ 15, 1987, will expire on September 30, 2003. We are writing you aow, 36 months in advance of the expiraUor~ to notify you of ]qorthland's desire to renew the franchise and renewal proceedings be c~mm~,~d pursuant to Section 626(a) of the Cable CommurdcaUons -Policy Act of .1984, 47 U.S.C. 5/6, as amended (the 'Act'). We also request that the City enter into informal renewal discussions with us pursunnt ~o - Section 626(h) of the Act..During informal renewal discussions~ the formal _vroced~ms Of th~ ~.~_ will be held in abeyance to allow for comlv]etion of informal negoUaUons so that Northland does -~ot waive any of its renewal rights set forth in the Act. We will forward to you Northland's proposal for the remwal of the franchise. In the meantime, if you have any questions~ please do not hesitate to call me, We look forward to continuing to provide quality cable television service to the City of Port Angeles. Pete Grisor~eE ' ZL~-' ' Regional-Manager cc:. RiciUU'd I. Clark KelUe D. Sera 3 W A S H I N G T O N, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DAT~: October 9, 2000 To: UTIZJTY ADVISORY COMMi'rll~lg . FItOM: Larry Dunbar, Power Resources MansS~r Svl~.Cr: Approval and Implementation of Commonily Telecommunications Action Plan Summary:. Metropolitan Communications Consultants (MCC) recently prepared a Community ralccommunications .Action Plan for the City. The Action Plan identified additional planning aeeds and specific actions the City should take over the next thre~-ycar per/od, This Staffreporl requests thc Utility Advisory Committee's. recommendagon to proceed with implementation of thc Action Plan~ lecommends//on: The Ut/l//)' Adv/sory Committee recommend Counell approva! of the :ommunfly Telecommunications Aefio. n Plan and a professional sendees agreement ia an mount not to e, ceed $92~500 w~th MCC for completion of: n enmPrehensive clecommunicat/oas ordinance; a !cleeommunications futur~ need~ sad interest~ ~falllt~t; a business plan for the fiber-optie baekbose; and to a~horizt Staff to prepsTM m requeSt for qualJfiestions for engineering services to design the, fiber-optic baekbone sad o proceed with the purebas~ of fiber-optie cabling. . Bse_s_s_s_s_s_s_s_sel/g.round/Ana s_b~i.' On 9/29/2000, MCC and Staffprescnted the Community Telecommunications Action Plan to the Utility Advisory Committee. The Action Plan identified the need to complete a telecommunications ordinance, conduct a telecommunications needs · . assessment, and develop a fiber-optic backbone over thc next three-year per/od. Tde¢ommuniestions ordiasaee The Action Plan identified thc need for a comprehensive approach to telecommunications regulations including a master telecommunications ordinance that would reference oth~ ordinances such as fight-of-way construction; licensing and taxation, pole attachments (to.be developed) and wireless facility siting (to bc developed). A comprehensive approach to teleeommtm/cations regulation is needed to comply with federal and state laws and to improve management of public right-of-way anticipating increased telecommunications construcgon demands. · e]ecommunieatinns needs and interes/s ~assessment The cable tc]cvisionfranch~se will expire on 10/]/2003 and a formal renewal ~rncedure mu.~t commence prior to 4/1/2001.. Subject to Utility Advisory Committee and City Cotmcil aPPrOval -of Staff's recommcndat/on to develop a fiber-opt/c backbone, the assessment will address all tcJecommunications needs and ~terests of the community. Thc ssscssment will provide public involvement into the City decision malc~ process for thc next cable television franchise and the cxp_~n~ion, Olvcration and. management of the City's fiber-optic backbone, and the ]xov/sion of telecommunications services. Professional aery/cas to assist with franchise ne~otia~/ons e~e not included in the scope of work at th/$ time. The Cable Operator (North]and Cable Television).: will be charged a fee W help offset the City's costs ofrenewhig the franchise. Fiber-optic backbone business planning, design and constructioll Based on Council goals and Power Engineers preliminary planning, MCC and Staff'recommend the City develop a fiber-optic backbone in Port Angeles. A business plan will ,~eed to be prepared as outlined in the scope of work. An engineering design including con~huction documents will need Io be completed for the fiber-optic backbone. Staff'will solicit ~ services to design thc fiber-0.pfic backbon, e through a request fo_.r qualification selection select a con,~ant, and negotiate a fee pno~ to the end of the l' quarter of 2001. Once the selection process is complete, Staff will seek the Utility Advisory Committee's recommendation before requesting City Council approval to proceed with fiber-optic backbone engineer/uS design. Once thc cngineer/ng design is complete, the City would call for bids to consUuct the fiberToptic backbone. Fiber-optic bockbone activation The first stage of activation would include short-term lease, of segments of the fiber-optic' backbone for point-to-point communica~/ons. The first stage of act/ration w/Il 'inclmie installation of communications cabling and electronic equipment (as required) in municlp~l fac/l/ties. The second stage ofactJvat/on, including installation of electronic equyment for core customers, would occur after the Utility AdvisorY Committee and City Council reach decisions base, don thc results of the assessmen! and cable fi'anch/se renewal. 'The third stye of activation, expansion of the network and purchase of additional electronic equipment on a network-wide basis, would also occur after the assessment and cable franchise renewal completed, Thc bus/ness plan w/Il need to be updated for the second and th/rd st~es of activation wh/ch is not included in the scope of'work. Community te]eenmmunicat/ons action plan cost estimate A combination of professional serv/ces and cturent Staff resources will be required to implcmont the Action Plan. MCC offers high quality professional services to the City to complete elements of the Acdon Plan. They have the export/se and are available to assist the City to prompt progress. Expenditures to implement the Action Plan would occur over a th~e-ye~ period beginning in 2000, some of which are presently unknown. 2 The r~qulrements and cost of fib~r-optic/nfraslmc~ and network activation equipmmt for stages 2 and 3 arc currently unknown and will depend on the assessrnenL Additional professional services md/or Smffresources will be required to operate and manage ~he fiber- optic backbone once activated. A copy of the professional services agreement and MCC's ~cope of work and schedule is inc)uded as attachment "A". Because of the nature of this project, a contingency/n the amount of 5% for unanticipated expenses has been included. Fund~n5 for pwfesslonal serv/ces, the fibcr-opt/c backbone, and network activation equipment are available with/n the elec/r/c ut/iRy fund reserves. Action pl-n cost estimate summary i. Coml~.hm~ive telecommunications ordinance~ $I0~000$7)500 ' $17,500 2. T¢lecemmtmicetions need~ and interests assessment 40z0~0, 40~000 13. Fiber-optic bac, kbo~ business plan (stab. es 2 & 3 not included) 35,000 '35~000 4. Fibo'-optic backbone · engineering design (estimate) 150~000 ' 150~000 Professional Sea'vices S, ub-To'ml $10~000, $232~500 $242~500 Fiber .?.ptic backbone ~ble (2s mi!~..48 strands esumased) $350,000 $3S0,000 Fla.-optic backbone installati°n (spffcin~ nodes) . 1,000,000 1,000,000 Stage 2 .fiber-optic distribution cable (rezlmrements unknown) Unknown Unknown Stn~e 3 .fib~-optic distribution cable (req.u~.m~ents unknown) Unknown Unknown Fiber. Optic Infrastructure Sub-Total $1)350)000 $1,320,000 Smgc 1 (Costs l~d by users) Unknown (reqmreme~s unknown) U ,nknown Unimown Stag~.a (reqmremenis unknown) Unknown Unimow~ Ne~vork Activation Sub-ToUsl Unknown To/al ~- St Estimate $10~500.tS1,661 )625 Attachments: 1 Professional Services Agreement ORTx NGELES WASHINGTON, U.S.A. CITY COUNCIL MEMO October 17, 2~ TO: ~YOR DO~ ~ ~ CO~C~ F~O~: Ole~ A. Cufl~, D~ctor of Public Wo~ ~ Ufilifics~~ " Su~: Appwv~ ~d ImpJcmenmfion ofCo~ Teleco~tio~ A~on ~el~~Uo~ AC~On P]~ for ~e Cz~. ~e Acgon PI~ idcnfifi~ addifio~ pl~ ~'. ~ Approve ?e Commum~ Telecommunication, Action Plan and autbe~ ~CC for/~ple(sOn off. a c~mprebensive ,elecommuniestions ordinaneel ~elecommunicnfions future, nerds and mltrtsts sssessment'~ a business plan for the fin~p~ ~tkbone; nad lo sulbo~ Sta~ to prepa~ a requ~t for quali~eaflons.for ~blJng (~lnffwdl requ~l C~ Conned nu:boH~ prior lo pu~hasmg). · ~ Acgon PI~ Jdentifi~ ~e n~ W ~mp~w a lele~b~o~ o~i~, ~nd~ a 1~10~, PA Wo~sl conc~d ~ ~e UAC's mco~endafion ~: a d~ ~mp~ ~e ~hedde wb~ ~s~ible; ~e n~d to inte~te effo~ such ~ Tom, F Point dgeWor m Pro~, ~d U~sys Co~ti~ int~6 ~ pm~ ~ o~ined ~ ~e A~ion Pl~i ~t new tec~ologi~ ~d ~der ~e~p 0p~es ne~ to ~ explored ~ oud~ed in ~e A~ion PI~; ~d n~ fm a Ii,son or ~n~ ~int of con,ct for ~e Ci~'s teleco~tions effo~. TeleeommunJ~ons ordinnn~ ~ A~on PI~ identified ~e n~d.for a comprehe~ive appmnch to ~afio~ ~iud~ a ~ ~le~cafiom ordin~ ~t would ~f~ develop) ~d ~1~ facili~ si~ (m ~ develop). A ~mp~he~ive a~ de~. Telecommunications needs and interests assessment . The cable foley/sion franchise will expire on ] 0/1/2003 and a formal renewal procedure must . commence prior to 4/1/2001. Subject to City Council approval of UAC, PA Works! and Staff'8 ~recommendation to develop a fiber-optic backbone,'the assessment will address all telecommunications needs and interests oftbe community. The assessment will provide public · involvement into the City decision making process'for the next cable television franclfise and the expansion, operation and management of the City's fiber-optic backbone, and the provision of teleconununications services. Public involvement obtained through the E-nabled Visions Tour, FalrPoint Communications BtidgeWork~~ Program, and Uaisy~ Corporation cornmun~y '.' interact portal program will not bc duplicated during thc assessment Professional services to assist with franchise nesofiations arc not included in the scope of work at this time. The Cab~ Operator (Northland Cable Television) wil! be charged a fee to help offset thc City's cost~ of renewing the franchise. Fiber-optic backbone business planning, design and construction Based on Council goals and Power Engineers preliminary planning, MCC, the UAC, PA Worksl and Staffrecommcnd the City develop a fiber-optic backbone in Port Angeles. A business plan 'will need to be preparecl as outlined in thc scope of work. An engineering design including construction documents will need to be completed for the fiber-optic backbone. Staffwill solicit engineering services to design the fiber-opEc backbone through a request for qualification selection process, select a consultant, and negotlatc a fee prior to the end of the 1~t quarter of' 2001. Once thc selection process is complete, Staffwill seek the UAC's recommendation before requesting city Council approval to proceed with fiber-optic backbone engineering design. Once thc engineering design is complete, thc City would call for bids to construct the fiber-optic backbone. Fiber-optic backbone activation Thc first stage of activation would include short-term lease of segments of thc~fiber.optic backbone for point-to*point communications. The first stage of activation will include installation of communicatious cabling and elecvonic equipment (as required) in muulcil~! facilities. The second stage of activation, including installation of electronic equipment for ~ customers, would occur after thc UAC and City Council reach decisions based on the/esults of the assessment and cable franchise renewal. The third stage ofactivafiolg expansion oftl~ network and purchase of additional electronic equipment on a network-wide basis, would also" occllr after 0g assessment and cable franchise renewal are completed. The business plan will nsed to be updated for the second and third stages of activation which is not included in the scope of work. Community telecommunications action plan cost estimate A combination of professional services and current Staff'resources will be required to implement the Action Plan. MCC offers high quality professional services to the City to complete many clements of the Action Plan. They have the expertise and are available to assist the City to make prompt progr~s. Expenditures to implement thc Action Plan would occu~ over a three-year period beginning in 2000, some of which are presently unknown. A copy of thc Community Telecommunications Action Plan is included as attachment "A*'. The requirements and cost of fiber-optic infrastructure and netwon~ activation equipment for stages 2 and 3 are currently unknown and will depend on the asses~nent Additional pwfessional services and/or Staffresources will be required to operate and manage the fiber- optic backbone once activated. A copy of the professional services agreement and MCC'$ scope of work and schedule is included as attachment "B". Becan~ of cbc nature of this project, a contingency in the amoUnt of 5% for Unanticipated expenses has been included. FUnding for pwfession~ services; the fiber-optic backbone, and network activation equipment are ayailable within the electric utilily fund reservea. ActiOn plan cosi ~timate summary · ' . A. ~rofestional Servicer 2000 2001 2002 2003 Total 1. Comprehensive telecomm unicatiom, ordinance.~ $]0,000. $7,300 2. Telecommunications needs and , interests ~ssessme~,t, 40,000 ! 40,000 3. Fib~-.-op~c backlxm¢ busin~ plan (stag. es2 & 3 n.o~ included) 35,000 · 35,000 4. Fib~r~pac backbon~ engineering design {estimate) '150,000 ' l~0,000- Professional Services Sub-Total $10,000 $232,$00 $242,'500 B. ~'iber-Olaticlnfrastructure 2000 2001 2002 2003 Total Fiber-optic backbo, ne c~.bl~ (~2.5 mi1¢$/4~ strands cstmaat~l} $350,000 ~ F~ .b3r...optic.backbone installation {~ph¢~rm, nod~) 1,000,000 1,000,000 Sta~. 2 .fib~r-opti¢ distribution cable' (req-trements .unkn.o. wn) TBD TaD Stage 3 .fib~-~pti¢ di~ribution cable (requ~mnent~ unknown) TBD TBD SubTotal $1,350,000 ~' JVetworlt,4ctivatlon. £qulpraent 2000 2001 2002 2003 Total. ~ s~: .~ ,..,,~'~; ,.. (Cor, s i~u~ ~ ) TBD TBD ~e 2 r~quirements unknown) TBD TBD '-eqmrements unknown) TBD i TBD. Network Activation Sub-T..otal TBD Sub-Total A~ B~ and C $10,000 $!,582,500' $1,$92,500 5% Contingency $500 $79,125 $?9,625 Total Co~ Estimate $10,500 $1,661,625 $1,672,125 Attachmenm A. Community T¢leeommunieatiorm Act/on Plan B. Professional Services Agreement NORTHL4ND BLE TELEVISION N0vcmber 10, 2000 725 East First St. · Po~ Angeles, WA 98362 · Thc Honorable Laro"Doyic Fax (~0) 457-5901 MaYor, Cily of?orr Angcl~s port Offioc Bax 1150 port Angeles, Washington 98362 North]and Cable Television, Inc. ("Northland") Civ/of Port Angeles. Washinmon ~ Request for Franchise Ran~wal. As you know, Not'land has requested th~! i~ c~hlc ~c]c~,ision franchi.~ bc roncw~t. ~gly, ..... we have enclosed duplicatc origirm]s of ]~or~dand's proposed cab!c television franchi~ roncwal ordinmwe for your rcvicw. Vet look forward to Working with you in thc development of an appropriat~ franchise agreement. As wc begin that proc. e~, wc thought wc would take this opportunity to toll you Northland and our ol~ratiom. · No~hhnd's executive management team has been involved in thc ownership and Ol0Cration of cable television systems since thc early 1950s and, in thc aggrcga~e,,l*ms over 90 y~m's of CXlr~'rien~ in fl~c c~hle indu~ro,. Specifically, wc I~ve cxpcr~se in t]~ arc~ of engineering, ~cchnic~l design; management, accounting, finance and law. Wc also have employees with good Sense and a caring, cons/der~tg attitude. Northland is laonclii~ng digital servic~ in the Port Angeles and $cq{~im srcas. ~1~ product will ~tly increase the number of channels ~VC c~n offor, as wcll ~S' provide our customc~s with products trust wc I~ve not offcrcd.bc£o~- such as cxpafidcd movie and event pay-pCr-vicw, multipl~ pmminm.cham~ls, ~ CD qu~lily music chmmels. * Northland is curranfly in th~ plarmlng stages of up-grading our cable systom and incr~h~ our · channel csp~ci~}, m 5$01viFIz for thc ?or~ A~¢igs and Sequim mess. * . Our communily service involve events such as Food Bank and Salvation Army canned food drives, National Fire Safely month, donations to thc YMCA, and many others which wc have pm'ticipated im No~hhnd' h~s pr0vidcd hi~ quality cablc tclcvisio~ service to the residents of l'ort A~cl~s si~e. ' 1988 ~nd wc look forward m continuing Io do so for many ye~s ~o come. We have listed bclow some of the factors abou! Northland's performance that we f¢it'wc~ i~t m share with you: A. ~ORTHiAND HAS SUBSTANTIALLY COMPLIED WITH THE MATERIAL TERMS O]: FRANCHISE AND APPLICABLI~ LAW. Compliance with matcrial'~crms.ofthc fraochise:. 1. Wc perform work in a workmanlike manner, so as not to prcscn! an unrcasonable danggr to The Honorable Larry Doyle November 10, 2000 Page 2 the public. 2. ' We maintain consistently high quality standards during the installaffon, operation and maintenance of our cable television facilities. 3. We s~'ive to provide quality television reception and progranuning. 4. · Our customer service representatives are readily available and easily accel'biz to our customers. 5. . We comply with the f~anchising authority*s rules and resUlctions with regard m use. of su'eets and rights-of-way. 6, Franchise fees arc calculated accurately and paid in a timely manner. 7. Om' cable system is not in default unde~ the terms of the franchise ordinon0e. ComDlianee with applicable 1, We comply with the rUles, proced~es and standards established by the City of Port Angeles. 2. We comply with local, state and federal authorities with regard to thc regulation of thc cable system. 3. We have a PrOven record of establishing procedures and standards that aes~e the cable · system is responsive to the needs of the community. 4. We comply with Equal Employment Opportunity regulations and am sensitive to me.h requirements in interviewing, hiring, training and promoting personnel. 5. We comply with Federal Communications Commission rules and regulations, B. ~ OUALITY OF NORTHLAND'S SERVICE I'NCLUDI]qG SIGNAL OUALITY. TO CONSUMER CO/v~LAINTS. AND BILLING PRACTICES HAS BEEN REASONABLE IN ~]GHT OF CO~ NEEDS. 1. We save to upgrade the cable system's equipment to the greatest degree tlmt is economically feasible. 2. Our technicians monitor the system's signal qt~lity on a regular basis .to be sure the best possible pictures are transmit~l to our customers. 3. Customer complaints and. service requests are responded, to within 24 hours, To ensure customer satisfaction, a system employee follows up with a service call, m~ the enti~ process - from receipt of a complaint to the resolution of the problem - in a customer__ 'log. Thc Honorable Larry Doyle Novemba' 10, 2000 Page 3 4. We h~v¢ developed and impJemented a custom/z~d bi])ing ~stem to fi~ ~ n~ of ~ cable s~. S~R~ FACILI~ES ~ EO~ AS S~ FOR~ ~ ~ OP~R~ ~lly ~o~ a~o~ fi~ of~ ~d~ LLP audit ~ch ofo= c~ ~ we employ ~1 wcll-~c~ hw ~ as ou~ide co~l, includ~g ~i~ ~! ~ 1. Mmy of o~ tcc~i~i employes ~vc ova' 20 y~ of e~ce ~ ~ ~ble ~!~ ~d~. ~ ~mpt Wstem ~. Thc Honorable Larry Doyle November 10, 2000 Page 4 3. We have/n/tinted a company-wide Quality Assurance Program designed to insure that our custom~s are satisfied w~th their s,~'Hce. Our program includes preventive maintenance procedm'es, customer call-backs following all service requests, and a procedure to . periodieally measure overall customer satisfaction with our service. 4. Our decena'alized management policy a/lows local managers to give tgrsonalized sarv/ce to the diverse communific~ that we serve. Our Regional Mar~ge~'s have an evcrMe of 16 yea~ experience in the cable tslevision business. D. NORTHLAND'S FRANCHIS~ RENEWAL PROPOSAL IS REASONABLE TO M~ THE ]c'UTURE CABLE-RELATED CO~ NEED$ AND INTERESTS TAKING INTO ^CCOLq~ TH~ COST OF ~_.~cr~0 ~UCH NEEDS AND n,~TERE. STS. 1. We constantly improve efficiency in thc managcment and operation of our cable television 2. We make every effort to utilize the wide array of rapidly improving equipment available in the cable indusu-y, in a cost-effective manner, to provide high quality technology a~ the most reasonable place to our custemea. As new cable programming is introduced we try to dct~,'~inc customer preferences to measure the community's level ofinterest. 4. Because wc feel our company should 'be a conm'buting member of the 'communities we serve, wc strive to provide programmin~ that is "community sensitive' in that it meets the community's ethnic, cultural, educational end other special needs. 5. We currently produce and cableeast a news and information program Called ~0rthlamt Cable News" that focuses on local community news events and features. · · In order to allow for completion of informal ncgotiatioua, the formal procedurus of th~ 1996 TelecommuniCations Act will be held in abeyance. Northland has not waived and does not intend to waive any of its renewal rights set forth in the 1996 Telecommunications Act. If you have any questions concerning Nurthland°s franchise renewni propcanl or ifY°u would Iike clarification or more information with regard to any of the topics noted above, please do not hesitate to give me a call. .. giomd Manager ce: Mike Rober~ Kelli¢ D. S~a OKDINANCE NO, CITY OF PORT ANGELES, WASHINGTON CABLE TELEVISION FRANCHISE RENEWAL ORDINANCE WHEREAS,.Ihe City Council of the City of Port Angel~, Washington, a~g f~ ~d ~ ~lf of~ Ciw S~fi~ 1. Title. ~s ~d~ s~l ~ S~fi~ 2. ~ack~ound. ~ ~Cem~ lS, 19~7, &e Ci~s ~ ~ No. 2470, ~.~ P~' ~gel~ Telecable, Inc. (~PA~*), a. ~chi~ m ~n~ cable ~l~s~ ~ for the pm~sion of cable ~le~i~ ~d~ ~d ~1~ ~ces in ~ Ci~ (&e "F~chi~. ~ Ci~ con~ m ~e ~an~fer ~d assi~mt of ~ 'F~c~ ~m PA~ ~ N~ ~ble T~i~ ~. ~o~l~d*). By le~, dated Oclo~ 3, 2~, ~ew' ~ F~chi~e p~nt m fed~l law. ~ Ci~, ~t ~ follo~ng public b~ngs on ~ ~ ~ det~ of~ ~dm~ of~e Ci~ to ~t ~uch ~e~. S~ 3. Extension of the F~hi~ T~,~. ~M'of fi~ (1~) y~m, cO~enc~ Octo~ 1, 2~3 ~d ~p~ ~ 30, 2018. a~li~, ~d (iff) to a p~ha~ of all ~ ~ubs~aily all of S~fi~ ~. ~ffect of this ~dinance. ~c~t ~ ~cifically m f~ in ~ ~ ~ ~h of · e d~m~ ~f~nced in Section 2 of~i~ ~di~oe, ~ F~c~ ~ii ~m~ ~ ~ f~ ~ gff~ ~S O~ANCE ~S B~ ~PRO~ ~. ~ ~ 8~- B~ D~ ~ ~S d~y of.. Mayor, CitF of P~'t Att~-'t: ORDINANCE NO, CITY OF PORT ANGELES, WASHINGTON CABLE TELEVISION FRANCHISE RENEWAL ORDINANCE WHEREAS, the. City Council of the City of Port Angeles, ~Vashingmn, actin~ for and on behalf of tha.city (the ~City~), does hereby ordain as follows: Section 1..T.i~. This Ordinance shall be known as tha *Cable Tclevision Franchise Renewal ordinance#'and shall be referred to herein as "this Ordinan~.' Section 2. ~t~ckground. On December 15, 1987, the City, by Ordinance No. 2470, ~nmted to Po~t. Angeles Telecable, Inc. ("Pa, TI"), a t~anchise to construct, operate, maintain, repair, replace and up.-nde a cable television system for the provision of cable television, video programming and other progrnm~ng and r~latod services in the City (the "Franchise"). On September 20, 1988, by Resolution No. 2?=80,.file City consanted to the transfer and assign.,nant of the Franchise from PATI to Northland Cable Television, Inc. ("Norihland"). By letter, dated October 3, 2000, the City was timely notified of Northland'sintent to ronew t~ Ftanchiec pursuant to federal law. ~ City, aP,~r due consideration of Northland's renewal' reques! and following public hearings on the matter, has det~..ined it is appropriate and in the best'interest · of the residents of the City ~o grant such renewal Section 5. Extension of the Franchise Tenn. Tile term of the Franchise is hereby extended for a period of fifteen (15) years, commencing October I, 2003 nnd expiring September 30, 2018. · Section 4. (~lariticat/on of the Franchise. The Franchise allows the grantee under the Franchise to assign and tnmsfer the Franchise from time to time (i) to i~s lendor(s) for security proposes,. (ii) to ils affiliates, and (iii) to a purchaser of all or subsUmtially .all of the as~ts of the grantee's cable television system serving the'City of Port Angeles, Washington.. Section 5, l~ffect of this Ordinance. Except as specifically set forth in this ordinonoc smd anoh of . the documents referenced in Section 2 of this Ordinance, thc Franchise shall remain in full force and effect . in aconrdanee with its terms. THIS ORDINANCE HAS. BEEN APPROVED AND ADOPTED AND SHA1.I. BE DEEMED ' EFFF. CulVE this' day of , Mayor, City of Port Angele~ ' Attest: City Clerk Oily of Pug An~Je~, Washin~on Cx29_ced;,.mce Franchise Renewal Ordinance WASHINGTON, U.S'.A. UTILITY ADVISORY COMMITI'EE MEMO D~TI~: February 12, 2001 TO: UTILITY ADVISORY CoMMrlTEE Lan D. Dun SuBJ-~'r: Cable Television Franchise Renewal - Public Proceeding Commencement ~ The City's cable television franchise with Northland Cable Television (cable operator) expires on SePtember 30, 2003. On October 3, 2000, thc cable operator requesmi its bmchise.be.rencwcd~ ~ City must commence a public proceeding to begin the renewal ~cess no later than April 1, 2001. ' ecommcndaflog: Recommend Council authorize Staff to commence the publie proceeding Using the public information/involvement strate~ reeommended berehl. ~ On December 15, 1987, City Council approved a fifteen-Year mm. exclnsivc cable television franchise Omi will expire on September 30, 2003. On October 3, 2000, the cable operator made a formal request to renew its franchise with the City in accordance with the Cable C0mmurdcations Policy Act (Act). The cable operator's franchise renew~ request was made within thirty to thirty-six months from the date the franchise expires, preservlnE their right to pursue renewal oftbe franchise. OnOc~ober 17, 2000, the CityCouncil approved a professional services agreement with Me~ropolium Communications Consultants (MCC) for comp]e~on ora te]ccommunJcations future needs and interests assessment for the next cable - - television franchise. Thc scope of work included a public proceeding and preparation ora draft cable-television franchise for renewal negotiations. Council was also advised tl~ the cable 'operator would be charged a fee to help offset the City's cost of~newing the franchise. Franchise renews! pro~ess A formal three-steP process is used to renew a franchise in accordance with the Act. The formal renew~] process contains procedures and standards designed to give stability and certainty to the renewal pr~cass, while continuing to provide thc City with the ability to assure that thc cable operator's renewal proposal is reasonable to meet the community's needs and interests, relative to the costs thereof- The procadure is also designed to assure flint the renewal process does not · impose unreasonable requiremcn! on thc cable operator. A..dhcring to the formal pi-o~ss d°es not preclude th Cit), from informal nei~o~ations with the. cable operator. ' Thc process includes 1) a public proceeding, 2) consideration of the cable operator's fi-anchise .' " rCnewa1 proposal, and 3) an adrninlstrativc hearing (if required). In order to preserve the City's authority unde~ the Act, the City must commence with Step 1 of the renewal process (public proccading) before Aprll 1, 2001. The public proceeding includes an assessment to determine the future cable.related needs and interests of the community; and to ~view the cable operator's Utility Advisory Comm/ttee Memo RE: Cable Television Franchise Renewal- Public proceeding Commencement Page 2 Upon completion of the assessment, a report will be'prepared by MCC for City Council consideration. After the report's findings and recommendations are approved, MCC will prepare a draft franchise to be used for negotiations with the cable operator. Step 2 oftbe renewal process includes receiving the cable operatOr's franchise renewal proposal, negotiations, followed by n public notice and comment period prier to ndoptinn. Step 3 'of the renewul ' process, an acl~nlnlstrafive proceeding, would follow n City Council preliminary assessment to deny the franchise renewal in the event the cable operator's PrOposal does not reaSOnably satisfy the CommHllity'$ ne~[~ and interests. An illustration of the franchise renewal process is presented in Attachment A. Public informafionfmvolvement strategy The public proceeding has two purposes: to determine the f~tm-e cable-related needs' and interests.of the community; and to review the cable operator's performence and compliance with the current fi'anchlse. 'The involvement strategy for current and prospective subscribers is to conduct a cable television service survey followed by a public hearing. An advertisement in local newspal~r will invite citizens to complete a survey. A draft survey will be presented al the meeting. The Cable Operator, Cable TV Government & Education Channel Advisol-y Committee, Utility Advisory. Committee and City Council will be involved.to ~ssess the City's future educational and governmental access channels, upgrade requirements, past perfonunnce and franchise compliance, and standard 13rovisions of the new lhmchise. A summary of the stakeholdem, involvement strategies, and main topics to be assessed is presanted below:. Stakeholders Involvemen! Strategy Assessment ToPics Cable Meetings and discussionsPast performance, franchise comphancs, cabb-. ' Operator followed by negotiation related future needs and interests, upgrade plans, · . Custom~ service standards, customer informmi~ and notices, billing procedures, service quality and Current and Cable television servicereliability, installation and repair services,' prospective survey and a public programming selection, numbe~ of channels, rale~, subsen'bers hearing franchise renewal, future needs and interests . Numlx~ of educational and governmental aec, ms Educational. channels, production resources, c~pital and Cable TV Go';,ernment & contribution, televising of City council, meetS.' government. IEducation Channel and other programming, cable service to. - organizali0nsAdvisory Committee community facilities Cable television service· survey, public hearin4, Upgrade requirements including hybrid Utility Advisory ' fiber/coaxial network, institutional networ~ ' Community Committee consideration emergency overrlde~ increased ehanneln . .. Cable television service survey, public hea~n_o~ Past performance and franchise compliance,. · Utility Advisory Franchise term, pole rental, fxanchise fee, and/or ' Community Committee consideration utility tax, f~anchise renewal fee amount., sanotions Attachment A Formal franchise renewal proc~s · Interests RepOlt~ ~ Cableprol:m~MOpemtor . J akeholder Approval of' informal/Formal involvement I~poft Nego~atiOne (4;17;2001) .C.b~e Opem~ + Utility Advtso~ Negotiatiom (by 10/17/2001) Commf~ee Dmlt. EduC~Orml ~cce. Advt~orY : Request for ~ ~Need. end Intere~ I nO Commll~ informsl/Fon'nll [ - / ReasonsblY ~ ~ I propo~ / [ (by 2~,4r~o~) 1 Commi~e ~ L (by 9/30/2003) p_.ORTANGELEs W AS H I N G T O N, U. $. A, OFFICE OF THE CITY MANAGER DATE: February 16, 2001 TO: MAyol~ DOYLE A~ CITY COUNCIL ' FROM: Mike Q. in~, City Manager The City's consultant, Me~'opolitan Communications Consultants, has drafted a Cable Television Survey. The survey is part of the cable television franchise renewal "public proceeding" process. The draft survey has been reviewed by several staffraerabers, Also, Mr. Pete Grigorieff, Northland Cable Television, has approved the survey form as presented. The public involveraent strategy for current and prospective subscribers is to conduct a cable television service survey followed by a public beating. The draft survey is attached for Council raerabers to comment on before it is released to the public. Please have commen~s returned by the end of the day on February 21. N:~PWI~.IGHT~OWId~ICCsm'vey.~I City of Port Residential --Angei~; Ca bl~Tele vision~Ser:viee$ ,_'rvey [FrontPage Save Results Component] The City of Port Angeles is asking for input from its citizens before renewing the franchise with Northland Cable Television. The information you provide is considered confidential, will not be disclosed, and will only be used for the City's survey. .TNSTRUt; ~.iON TO COHPLETE THE SURVEY: Please provide your name and contact information, and respond to each question by darkening the circle with a click of your mouse. Please select the response that comes closest to your own opinion. A space is provided at the end of the survey If you have any additional comments or recommendations you would like to sharo. After you have completed the survey locate the "submit" button and send it to the City with a click of your mouse; Contact person Telephone number Please tell us about your experience with Northland Very Satisfied Dissatisfied Very Don~ Customer Znformatlon and N~Jm satisfied dissatisfied know 1, [nformatlon on products, services, options 2, Information on rates CI 0 0 0 0 3, Channel lineup notices 4. Billing and complaint procedures 0 0 0 0 C) 5. Advance notice of changes 0 0 0 0 0 Very SaUsfled Dissatisfied Very Don't Billing Procedure satisfied dissatisfied know G. Billing Is clear, concise and understandable 7, All services and charges are Itemized 0 0 0 0 0 8. A summary of bllJ IS provided ~ (~ 0 0 0 9, Refunds are Umely C~ O O O O Discount for retired and disabled zo. 0 0 0 0 0 individuals ZZ. Billing due dates and grace period C~ O 0 0 0 Service Quality end RnllnbllRy Very Very satisfied Satisfied Dissatisfied dl~atlsfied 12. picture signal quality 13. Sound signal quality 14. Frequency of outages Don't yes no know 1.5.My signal is not amplified by extra equipment 1.6. Service correct,ns are made within 1. day of request Very Very ZnetallaUon and Repair Service satisfied Satisfied Dissatisfied dissatisfied :[7. Telephone and Office Availability O 18. Appointments are made and kept 0 Zg. Outages are promptly corrected O O O O 20. Other service problems are promptly corrected 2[. Prompt Installation of new service 22. ]nstal~at~n workmanship 23. Employee identification Other televlalon totalea Yes No [~on't know 24. i am a clUzen of Port Angeles live within the city limits 25. My household Is Increasing the time it spends watching television 26. During the last ;~2 months, have you purchased one or more of the following? Yes No Don't know a. Cable television b. Satellite dish c, High definition television d. Digital video disk (DVD) e. ]nternet access 27. During the next 12 months, do you plan to purchase one or more of the following? Yes No Don't know a. Cable television b. Satellite dish c. High definition television d, DIgrcal video disk (DVD) e. ~nternnt access cable televiaion please Indicate the service tier(s) you subscribe to and your satisfaction/dissatisfaction with programming selectlor number of channels and monthly rates Monthly programming Rates (taxes not Current Subscriber Selection Number of Channels filclubed) Service Tier (brief description) Current Yes No Satisfied Dissatisfied Satisfied Dissatisfied Rate Satisfied DIsSntlsfl ~e. Sos~c (~? channels) 0 0 ~ © tO 0 $2~.95 0 0 2g. Expandad 13aslc (39 charmers) O (~ C) O O ~ $40.75 30.Bronze Digital ;(S6 channels) O (~ C~) ~ (~ C) $48.99 O 31.Silver Digital (60 channels) O O ~ ~ O ~ $58.99 O 32.Gold Digital (from 62 to 66 channels) ~ C) O ~ C) (~ $67.99 33.Platinum Digital (70 34.pay per view (22 channels) 0 - ~ 0 ~ 0 0 33.99 each Hay we have your opinion? Strongly Strongly No Ny Futuee Needa And ~ntere~t~ support Support Against against opinion 35, My household would Watch locally produced programs (such as news, arts and sports) if C) C~ C) O they were broadcast over cable television 36. iViy household would watCh InformaUonal programs about City government and O O O O community programs and events h' they were broadcast on cable televlsldn 37. My household would watch educational programming and curriculum if they are O C) O C) continued to be broadcast on cable television 38. My household would like more cable television (::) C) O C) channels 39. My household would like more music channels O Ct O O O 40. My household would like to receive high- definition television programming (HDTV) over 0 0 0 0 cable television 41. My household would like to subscribe to a 0 0 C) 0 service that could block out selected programs 42. My household supports the City and Cable Operator working together to develop high- O O O O speed Internet access over cable television 43. My household would subscribe to high speed 0 0 (~ 0 [nternet access over cable tv 44; Ny household would like iota! emergency alert O Ct O O messages to be broadcast over cable television 45. Ply future needs and interests are satisfied O ~:) O ~) without any changes How much more will you pay to satis /your needs and interest #~, N~ a~ ~ None $~./Honth $3/Honth SS/Month $10/Honth $20/Hor 46. Local news, arts and sports programming 0 0 C~ Ct 0 Ct 47. Televised City government and community 0 0 0 0 programs and events 48. Televised educational programs and curriculum 0 0 0 Ct C) Ct 49. Ten (10) additional teleyislon channels O O Ct O O 50. Ten (10) additional music channels Ct O Ct Ct 51, High-deflnlUon television programming (HDTV) O O O O O 52. Parental control device C~ 0 0 Ct 0 53. High-speed Internet access over cable television O O O Ct 54, Local emergency alert messages 0 0 Ct 0 0 Ct 55. Please provJpe us with any comments or recommendations you may bevel WASHINGTON, U.S.A. CITY COUNCIL MEMO D~T~: February 20, 2001 To: MAYOR DOYLE AND CITy COUNCIL I~OM: Glenn A. Curler, D/rector of Public Works and Utilities SUl~'F~L'T: Cable Television Franchise Renewal - Public Proceeding Commencement Recommendation: This report Is shared as Information only. ~ On December 15, 1987, City Council approved a fifteen-year non- exclusive cable television franchise that will expire on September 30, 2003. On October 3, 2000, the cable operator requested its franchise be renewed in accordance with the formal prccedm~s of the Cable Communications Policy Act (Act). On October 17, 2000, the City Council approved a professional services agreement with Metxopelitan Communications Consultants (MCC) that included a public proceeding and preparation of a draft cable television franchise for renewal negotiations. A formal three-step process is used to renew a franchise in accordance with the Act. The process includes 1) a public proceeding, 2) consideration and negotiation of the cable operator's franchise renewal proposal, followed by a public notice and cornmeal per/od prior to adoption, and 3) an administrative hearing (if required). In order to preserve the City's authority under the Act, the City must commence with Step I of the renewal process (public proceeding) before April 1, 2001. The public pwceeding includes an assessment to determine the future cable- related needs and interests of the community; and to review the cable operator's performance and compliance with the current franchise. Upon completion of the assessment, a report will be prepared by MCC for City Council consideration. After the report's findings and recommendations are approved by City Council, MCC will prepare a draft franchise to be used for negotiations with the cable operator. The involvement strateiD' for current and prospective subscribers is to conduct a cable television service survey followed by a public hearing. An advertisement in the local newspaper will invite citizens to complete a survey. The Cable Operator, Cable TV Government & Education'Channel Advisory Comnfittee, Utility Advisory Committee and City Council will be involved to assess the City's future educational and governmental access channels, uptgade requirements, past performance and franchise compliance, and standard provisions of the new franchise. N:~J~,LI~WM~ATV2.DOC WASHINGTON, U.S.A. GOVERNMENT & EDUCATIONAL ACCESS COMMITI'EE DATZ: March 15, 2001 To: GOVERNMENT AND EDUCATIONAL ACCESS ADVISORY COMMil]'lf~ FROM: Larry D. Dunbar, Power Resources Manager Sua~c'r: Cable Television Franchise Renewal ~ The City's cable television franchise with Northland Cable Television (cable opexawr) cxp/res on September 30, 2003. On October 3, 2000, the cable operator requested its 5'anchise be renewed. ~ommi~ee Action Requested: Review the cable operator's performance and campllanee vith the c-treat franchise. F. vainate the f,,tere cable-related edecation~] a~d |overnmentg! access channel needs sud i~terests. .. Back round/A~al sis: On December 15, 1987, City Council approved a fifteen-year non- exclusive cable te]ev/sion fi'anchise that w/Il exp/re on September 30, 200~. on October ~, 2000, the cable operator made a formal request to renew it~ franchise with the City in accordance with the Cable Communlcat/ous Policy Act (Act). The cable operator's franchise renewal reques~ was made within th/try ~o th/try-slx months from the date thc franchise exph~s, preservi~ the/r r~ to pu~ue renewal of the fr~cMse, on OcWbcr 17, 2000, the City Council apl~oved a professional serv/ces agreement with Metropolitan Communications Consultants (MCC) foe completion of a telecommun/cations future needs and interests assessment for the next cable tcle~/sion franchise. The scope ofwor~ included a public proceed/nE and preparation ora draft came telex/sion franchise for renewal negotiations. Counc/] was also advised tha~ the cable operator would be charted a fcc to help offse~ the City's cost of rencwin~ the franchise. Fra~thise renewul proce~ A formal three-step process is used to renew a franchise in accordance with the Act. Thc formal renewal process con~ procedures end standards designed to ~ive suability and ce~,~ty ~o the renewal process, while confinui~ to provide the City with the ability to assure that the cable operator's renewal proposal is reasonable to meet the community's needs and/n~c~, relative to the cos~s thereof. Thc procedure is also dcsisned to assure that the renewal process does not impose unreasonable ~equirement on the cable operator. ~._~! to the fo .r~nal pwce~, does no~ preclude the CiD' from informal.neiotiations with the cable operator. The process includes 1) a public procaedin~, 2) consideration of the cable operator's franch/se renew~ proposal, and 3) an admin/s~ra~ve hcarint (ifrequi~l). In order to preserve ~he City's authority under the Act, the City commenced Step l of thc renewal process (public proceed~ on Febru~ 25, 2001. Government and Educational Access Advisory Commitlce Memo RE: Cable Television Franchise Renewal Page 2 The public proceeding includes an assessment to determine the future cable-related needs and interests of the community; and to review the cable operator's performance and compliance with the current flanchise. Upon completion of the assessment, a report will be prepared by MCC for City Council consideration. After the report's findings and recommendations are approved, MCC will prepare a draft franchise to be used for negotiations with the cable operator. Step 2 of the renewal process includes receiving the cable operator's fianchise renewal proposal, negotiations, followod by a public notice and comment period prior to adoption. Step 3 of the renewal process, an administrative proceeding, would follow a City Council preliminary assessment to deny the filmchise renewal in the event thc cable operator's proposal does not reasonably satisfy the 'Community's needs and interests. An illustration of the :fianchise ~newal process is presented in Attachment A. Public information/involvement strategy The involvement strategy for current and prospective subscribers is to conduct a cable television service survey and public meetings. The Cable Operator, Government & Educational Acce~ Advisory Committee, Utility Advisory Committoe and City Council wil! be involved to asse~ the City's future educational and governmental access channels, upgrade requirements, pa~t performance and franchise compliance, and standard provisions of the new fi'anchise. A summary of the stakeholders, involvement ~t~ategies, and main topics to be assessed is presented below:. Stakebolder~ Involvement Strategy Assessment Topic~ Cable Meetings and discussions Past performance, franchise compliance, cable- Operator followed by negotiation related future needs and intcres*z, upgrade plans Customer service standards, customer information and notices, billing procedures, service quality and ~t and Cable television service reliability, installation and repair services, prospoztivc survey and public programming selection, number of cbRnn¢ls, rotes, subscribers meetings franchi.'se renewal, future needs and interests Past performance and franchise com, vlian~ related w access channels. Future number of Educational educational and governmental access channels, and Government & production resources and capital needs, televising governmental EducationaIAcces$ of CityCounctlmeetingsandotherprogramming, organization~ ~ .4dvisory Committee and cable service to communityfacilitie~ ' Cable television service survey, public hearing, Upgrade requirements including hybrid Utility Advisory fiber/coaxial network, institutional natwork,' Community Committee consideration emergency override, increased channels Cable television service survey, public bearing, Past performance and franchise compliance, Utility Advisory Franchise term, pole rental, franchise fee, and/or Community Committee consideration utility tax, franchise renewal fee amount, sanelions Attachment A Formal franchise renewal process The illustration below is an outline of the formal fi~nchise renewal proc=ss. The dates in parenthesis are based on the most recent schedule and ~re tentative. I Cable Operator I I Renewal I Request I 10/3/2000 ~ Interests Report P g / (7/14/2001) I · Proceeding Performance . ~ Franchise J UAC Approval of Informal/Formal AssesSment to Deny Compllenca I Report Negotiations Future Needs (8~2001) Franchise Renewal end Interest~ '/T' Stakeholder City Council I Cable Operator Involvement Approval of I Renewal Proposal Report (by 1/17/2002) Cable Opeml~r (87~/~,001)_ Subs~bem ~ Utility AdvisOry C~ I I Needs and Interests Committee Negotiations Reasonably Met? Draft (by 2114/2002) Government end Educational ~omm~t~e I Informs~orm~l City Steering } Proposal Public Notice and Committee { (by 10/12/2001) Comment Period Public Meetings Franchise Ordinance 3/29/2001 Adoption - at 6PM (by 9/30/2003) 3/30/2001 at 3PM UNIVERSITY OF WASHINGTON OI~ICE OF EDUCATIONAL pov l ources City of Po t Angaes 321 ~t F~ S~ Po~, WA 983~17 I ~dm~d &e G~ ofP~ ~ ~ r~ ~u~ fm ~e ~ of edu~g~ ~ble Wss~on~s ~u~t for ~e ~dusioa of ~ ~s p~ to ~ ~ except ~so~e i~ ~c~gon ~ 1994, ~ hss recgved n~ s~s f~ o~ pm~g ~d v~e~ of cont~ ~e pop~ of ~e &~d V~ ~ ~ensb~ ~d W~st~ ~ p~ n~-co~ edu~6o~ p~f~, t~&m, ~d ~ ~ pu~ ~e U~ of Wss~ ~ ~ of~ ~d ~ ~ not s~ ~e f~ ~ ~e ~ ofPo~ A~. ~dos~ ~ ~ 1~ you ~ ~d ~ c~ ~d a s~pk ~ ofpr~s. We ~d G~t ~d ~u~gon~ Acc~s A~s~ ~ to ~ shout ~ ~d ~ ~s~fi~. ~e p~g m~ fo~ ~t proceed. We l~k fo~ to ~ oppose. ~ ~u for yo~ considmgom ~ Fox 0~/0~Ol 320Msr,/C, alesH,,ll Box 35,21920 Seattle, Washirtgt~n98195-2820 206/085-474~ FAX:206-221-.~f-~q WASHINGTON, U.S.A. UTILITY ADVISORY COMMI'I-FEE MEMO DATt: May 7, 2001 TO: UTILITY ADVISORY COMMITTEE AND P.A. WORKS COMMITTEE 1~o~: Lan'y Dunbar, Power Resources Manager SUnaEcr: Fiber Optic Backbone Business Plan Authorization to Proceed ~ On April 30, 2001, Mr. Richard Li and Dr. Paul Carlson of Metropolitan ;ommun/cations Consultants (MCC) presented thc draft business plan at a special mee~ of the ltiEty Adv/sory Comirgttee and P.A. Works! Corrun/ttee with no action requested. Consulting ~ervices proposals have been received for hnplementafion of the business plan's ecommendat/ons. recommendation: Recommend to City Council that the business plan be approved, the iber optic backbone design engineering services agreement with MCC be rescinded, and the Mayor be authorized to accept the consulting services proposals with Metropolitan Communications Consultants and Dow~ Cogburn and Friedman. Back round/Ann] is: On October 17, 2000, the City Council approved aprofessional services agreement with MCC including legal services from the firm of Dow, Cogbum and Friedman (DCF) to implement the Community Telecommunications Action Plan. On February 6, 2001, Couecil approved an agreement in the amount of $166,882 with M CC for h'ber optic backbone design engineering services and withhald notice to proceed until business planning verified overall feasibility. Based on the business plan's recommendations and sUate~ic dh'eetion, Staff recommends the fiber optic backbone design engineering agreement be cancelled. On April 30, 2001, the business plan was presented at a special meeting of the Utility Advisory Committee and P.A. Works! Committee with no action requested. A total of fotr infrastructure development alternatives were presented including: City developed and owned, City/Cable provider partnership, City/Telephone provider partnership, and City/Cable/Telephone consortium. The business plan confu'med the overall feasibility of each alXemativ¢ de,ri'bed above and recommended a strategic direction for the City to follow as it pursues development of a broadband telecommunications infrdstructure. The business plan recommends the City's role should be an infrastructure enabler versus a telecomrnunicatious services provide~. A copy of the final business plan is attached. In order to proceed with implementation of the business plan, consulting services propo~da were obtained to assist the City on a Pilot Project, negotiation of a City/Cable provider partnership, and development of a City/Cable/Telephone consortium. The City Attorney has not reviewed the consultants' proposals. A copy ortho consulting services proposals is attached. May 7, 2001 Utility Advisory Committee and P.A. Works Committee Memo Page 2 The business plan's recommendations and strategic direction support the proposed m/salon ensure delivery of broadband telecommunications products and services to Port ,4ngeles by 2002, by enabling the development of necessary telecommunications infrastructure." Although the business plan confumed the overall feasibility of a City owned and operated fiber optic backbone, it should only be pursued if future infras~-ucture development partnersh/p efforts are unsuccessful. A summary of the business plan's infrastructure development recommendations and strategic direction is provided below. Busines~ PI~i ~cture beve.lopment Scenari0' S ,l~ate~ D.'mmfion 1. City Development Delay until outcome of Scenarios 2-4 2. City/Cable provider parmership Proceed with nel~otiafions 3. City/Telephone Partnership Proceed with consortium planning 4. City/Cable/Telephone consortium Below is a summary of the consulting services scope of work required to proceed with implementation of the business plan's strategic direction. S te c Dtrecti .' City Pilot Project Project definition and design consulting services for a fiber optic infrastructure pilot project. During the project definition.stage, goals, and participating customers and service providers would be determined. The cost of the proposed scope of work is $35,OO0 (lump sum) and the construction and equipment costs are estimated at $350,OO0. If the project definition and design consulting services are approved, Staff would return to the Utility Advisory Committee requesting their recommendation for bid award of the pilot project. City/Cable pwvider Proceed with technical and legal consulting services to negotiate an partnership upgrade to the Cable Operator's infrastructure aa part of the franchise renewal. Prior to negotiations, MCC would prepare the infi'astructure partnership, network, cost, and schedule requirements. Outside legal services proposed would be provided to assist the City Attorney with franchise renewal issues as they may arise under Federal Law. The proposed technical and legal consulting services total $25,000 and $10,000 respectively (time and expense). The cost ofcousuifing services will depend on how well negotiations E.roceed. City/Telephone Proceed with technical services in support of consortium partner Partnership, and development. The proposed technical consulting services total $20,000 City/Cable/Telephone (time and expense). Additional technical and legal services may be consortium necessary for planning, solicitation, and consortium building. WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: May 22, 2001 To: MAYOR DOYLE AND CITY COUNCIL FROM: Glenn A. Cutler, Director of Public Works and Utilities SU~I~CT: Fiber Optic Backbone Business Plan Authorization to Proceed [~ The Business Plan verified the overall feasibility of four scenarios to develop a fiber' optic backbone. As part of the Bus/ness Plan, a strategic direction was recommended that: explores partnership opportunities to develop a fiber optic backbone, ret~inlug City development as the opportunity of last resort. The PA Works] Committee and the Utility Advisory Committe~ recommend proceeding with implementation of the business plan. Recommendation: Approve the business plan, rescind the fiber optic backbone desigl engineering services agreement with MCC, and authorize the Mayor to sign eonsultin~ services agreements with Metropolitan Communications Consultants and Dow, Cogburn and Friedman. Back round/Anal sis: On October 17, 2000, the City Council approved a professiOnal services agreement with MCC including legal services from the firm of Dow, Cogbum and Friedman (DCF) to implement the Community Telecommunications Action Plan.- On February 6, 2001, Council approved an agreement in the amount of $I66,882 with MCC for fiber optic. backbone design engineering services and withheld notice to proceed until bus/ness plannlnf. verified overall feasibility. Based on the business plan's recommendations arid ~i~ategic direction, the fiber optic backbone design engineering agreement should be cancelled. On April 30, 2001, a draft of the bus/ness plan was presented at a special meeting of the Utility Adv/sory Committee and P~.. Works! Committee with no action requested. A total of four /nfrastructure development alternatives were presented includ/ng: City developed and owned, City/Cable provider partnership, City/Telopbone prov/der parmerstfip, and City/Cable/Telephone consortium. The business plan comqnned the overall feasibility of each alternative described above and recommended a strategic direction for the City to follow as it pursues development of a broadband telecommunications infrastructure. The business plan recommends the City's role should be an infrastructure enabler versus a telecommunications services provider. A copy of the final business plan is attached. In order to proceed with implementation of the business plan, consulting services pwposals were obtained to assist the City on a Pilot Project,.,negotiation o.f a City/Cable provider partnership,. and development of a City/Cable/Telephone consortium. A copy Of'the consulting servic,~s proposals is attached. May 22, 2001 City Council Memo Page 2 The business plan's recommendations and s~rategic direction support the proposed mission "To ensure delivery of broadband telecommunica~ons products and services to Por~ Angeles by 2002, by enabling the development of necessary telecommunications infrastructure." Although the business plan confu'med the overall feasibility of a City owned and operated fiber optic backbone, it should only be pursued if future infrastructure development parmership efforts sre unsuccessful. A summary of the business plan's infrastructure development recommendations and strategic direction is provided below. Bu~iness Plan ~~ D~eiopment S~° ~ff~eg~c Direction 1. City Development Delay until outcome of Scenarios 2-4 2. City/Cable provider partnership Proceed with negotiations 3. City/Telephone Partners~p 4. City/Cable/Telephone consortium Proceed with consortium planning Below is a summary of the consulting services scope of work required to proceed with implementation of the business plan's strategic direction. S te ic summ , , . : City Pilo! Project Project definition and design consulting services for a fiber optic infras~ruclure pilot project. During the project defim.'tion stage, goals, participating customers, and service providers would be determined. The cost of the proposed scope of work is $35,000 (lump sum) and the construction and equipment costs arc estimated at $350,000. Ii'the pro. jec! defmitien and design consultin8 services are approved, Staff would return to the Utility Advisory Committee requesiing their recommendation for bid award of the pilot project. City/Cable provider Proceed with technical and legal consulting services to negotia~z an ',~ parlncrship upgrade to the Cable Operator's infrastructure as part of the franchise renewal. Prior to negotiations, MCC would prepare thc infrastructure parmership, network, cost, and schedule requirements. Outside legal services proposed would be provided to assist the City Attomey with franchise renewal issues as they may arise under Federal Law. The proposed technical and legal consulting services total $115,000 and $I0,000 respectively (time and expense). The cost ofconsultilIg ' services will depend on how well negotiations proceed. City/Telephone Proceed with technical services in support of consortium parmcr Partnership, and development. The proposed technical consulting services for City/Cable/Telephone consortium panner development is $20,000 (time and expense). consortium On May 7, 2001, the PA Works! Commitiee and thc Utility Advisory Committee instructed Staffto return with a comprchcnsivc proposal for consortium planning, consortium partner solicitation, and consortium building. Recommended Stmegic Direction #0 Stop Other Other Scennrio (3 end 4) #egotlntio~i CoesorEil! P&doer Consol~om Solicibtioe hlldimg Consortium Consor6um Proposals Agreements Consortiem Plnenleg Structure and Evaluate Responses NegotJatkx~s Organization Policy and Determine Strategic Execute Agreements Planning Relationships Begin Consortium Functional Operations Recommend Partners Opea§ons City Development (Scenario 1) Pore AAgeles Telecommeeic~tioes Notwo~ Implemeet~#om 13 WASHINGTON, U.S.A. PUBLIC WORKS 8: UTILITIES DEPARTMENT Monday, July 30, 2001 pete G~igodeff . Regional Manager Northland Cable Television 725 'East First Street Port Angeles, WA 98382 Dear Mr. Grigorieff, Thankyou for sharing your plans to upgrade your fiber optic network in the City i of Port Angeles. We Io0k forward to discussing your concept furtherl :. Earlier this year Council approved a Telecommunications Business Planning Analyses including a mission 'to ensure delivery of broadband telecommunications products and services in .2002, by enabling the development of the necessary telecommunications infrastructure'. 'As part of that approval, we recognized the opportunity to partner with 'Northland as part of the franchise renewal and authorized a consortium partner approach to develop infrastructure. We believe that either approach Will achieve the City's goals and be superior and easier to implement than a standalone City developed and owned infrastructure · -project. We are planning to advertise a formal consortium partner solicitation in ..... September of this year.. However, before proceeding with a competitive process, . the City dec~ded to pmv,de incumbent servIce prov,ders an opportunity to ~i~i' negotiate proposals. Based on your July 26, 2001 presentation, we are interested in promptly proceeding ~,ith informal discussions and negotiation of your nex!. franchise. Sincerely, Mayor "' · ~25 EAST FIFTH STREET ® P. O. BOX ! $50 · PORT ANGELES, WA pHONE: 360-417-4805 · FAX: 3SO-41?-4S42 · TTY: 360-4l?-4645 · E-MAIL: PuBwOR KS~CI.PORT-ANGELES.WA.US 14 Larry Dunbar From: Larry Dunbar [palight~ci.port-angeles.wa.us] Sent: Tuesday, July 31, 2001 10:27 AM To: Pete Grigorieff (E-rnail) Subject: Cable Upgrade Plans Dear Pete, Thank you for your preeentation last week! We are excited about the poBeibilitY of partnering with Northlan~ on your cable upgrade plans. We look forward to meeting w/th you on August 6th at l=lspm at City Hall. We would like ~o discue~ how ~he City's needs can b~ tncorpor&=ed into your upgrade, the franchi~e renewal procesa, and'exptdtted renewal ~chedule. We will be following up this message in a letter to you. harry .. 15-- _Larr7 Dunbar From: Larry Dunbar/paJight~ci.port-an~eles.wa.us] Sent: Friday, August 03, 2001 9:55 AM To: . Pete Grigorieff (E-mail) Subject: Franchise negotiations We are assembling the City negotiations team. At this time, the City team includes ~,self, Mr. R/chard Li from Metropolitan Communications ConsultanEs, and Scott McLain, Deputy Director of Power Systems. After our meeting next week we anticipate that we will he ready to begin negotiations. We are wondering who (name and position) fro~Nor=hland will be participating in negotiations? Larry IO Larr~ Dunbar From: Lany Dunbar [palight~ci.port-angeles.wa.us] Sent: Tuesday, August 14, 2001 4:59 PM To: Pete Grigorieff (E-mall) Subject: Franchise Negotiations We are looking forward to negotiations and thought that we better set some tentative dates given our fait track timeline. The City ia on schedule and plans to share a draft franchise document with you before our August 21e: meeting. Ia the Northland.nego:iationl team available (via con~erence call or :he afternoons of the following dates? e/23/o1 e/29/0~ e/30/oz How abort: the any o~ the foZZowing dates (~e are oFea ~/s/oz 8122/2001 Yesterday Richard Li, Glenn Cutler and Larry Dunbar met with Northland's Pete Grigorieff, Mike Sturgeon, and Mike Roberge. The purpose of the meeting was to introduce Northland to the City's draft franchise and review the City's major goals. The draft franchise was revised based on Craig Knutson's comments prior to sharing it with Northland. Overall, the meeting went very well, with both parties being cordial. No negotiation of the franchise occured at the meeting. Northland desires to maintain the schedule but indicated that their in-house counsel may need more time to review the draft franchise due to vacations. Mike Roberge contacted me today to share that they are committed to a fast track schedule but fomee that more time may be necessary to negotiate the franchise. Mike requested a courtesy copy of the draft needs and interests report, I agreed to provide it. Pete Grigorieff commented on the proposed term, franchise fee, utility tax and pole attachment fees again, indicating they will be issues for Northland. We have room to negotiate and we indicated our willingness to do so (in exchange for value). A tentative negotiations and management oversight committee meeting schedule was established as outlined below: A. 8/27/01 (close of business) Northland Provides initial response to' Larry Dunbar on informal negotiations draft franchise B. 8/28101 (3PM-SPM) Management oversight committee report (Mayor Larry Doyle and Councilmember Orville Campbell invited) C. 8/29/01 (gAM-1PM) Northland/City meeting to discuss City response. Northland indicated that they may include their attomey at this meeting, we will invite the City Attorney and Clarence West to attend. D. 8/29/01 (3PM-5PM) Management oversight committee report (Mayor Larry Doyle and Councilmember Orville Campbell invited) E. 8/30/01 (9AM-1 PM) Northland/City meeting to discuss Northland response F. 9/4101 (9AM-1PM, City provides lunch) Northland/City meeting to discuss City response G. 9/4101 (3PM-5PM) Management oversight committee report (Mayor Larry Doyle and Councilmember Orville Campbell invited) H. 915101 (9AM-1PM) Northland/City meeting to discuss Northland response I. 9/5/01 (close of business) Northland accepts Exhibit A NORTHL4ND COMMUNIOITIONS o CORPORATION 120'1 'rhl~ Aveune, I~,~e a6oo FAX ~ Aunt ~, ~1 1~ Powur Resources Manager City of Pcr~ Angel~ 321 East Fifth Sa~t Port Angeles, WA 98362-0217 VIA B-MAIL & U.S. Mail RE: _Informal Proposal.for the Renewal of Cable Franchise As a follow up to our telephone conversation last Wednesday afternoon, I wanted to flmiflt you and Richard M for your cff~ts in providing us with the fa-st draft of the proposed cable ~ievisioo As we discussed, both Pete Grigorieff and I have had a chance to quickly review the document. I have also chculated electronic copies to our legal department as well as to senior nmnagement for their review and comment. We plan to provide you with om' mark-up as sooo as possible. At this point though, our greatest concern is the opportunity to obtain the draft mpo~ of the Needa Analysis and Assessmeut, which appears to be central and key to the drafting of the franchise m.dimmce proposal. I understand that is your intent to provide a final draft to thc Utility Advisory Board prior to the September l0~ meetly. To reiterate, we must be able to fully review this documant along with the draft francl~ ~ in order to submit mea~ngful and corbelling comments, cha~es and recommendations. We would be most appreciative if there was a way to accommodate our need. J~ addition, it has boccme much mc~ apparent to mo that the timeline we discussed as a ~ yesterday is in fact, too ag~essiv¢ and has subsequently become less realistic as we inJgate om' review. While it re. ins Nomhisnd's intent to proceed in an cxpodient manner, our preliminary review of the draft franchise ordinance proposal indicates that the deadiines will be virtually i .m~oaslble to acldeve' within the uex! two weeks. There is just too much information to review, and several s~m~i6cant issues that must be g~roush]y understood before eig'~cr party can a~ree to proceed on a fast track. That's no~ to say that we're not interes~l in the structure of this agreement, and, we want to proceed with the franchise renewal on an informal basis without waiving any fights and privileges afforded us unde~ federal law, rather we each must ensure that the strategic doc~sions made in the process are fully reviewed and shared Tberefo~, I would respectively submit that Northland continues with the quick turn a~und of the draft franchise ordimmcc proposal immediately upou receipt of the draft needs analysis and assessment, Following your timely review of our comments, changes and recommendations, I believe we'll both have a better handle on time frame requirements as well as any critical path issues that may arise; Larry, on behalf of all of ns bete at Northland, ]et me reiterate our intention and desire to renew and extend the cable television franchise in Port Angeles, and h'lat we are able and willing to commit the resources required to complete this negotiation on .terms and conditions beneficial to both panie~. Also enclosed for your reference is a corporate profile for Northland as requested in yesterday's meeting. As usual, please do not hesitate to call on ns ff there's any additional information we can provide to you and your s~ff, Lastly, as you know, in order to allow for completion of informal negotiations,/he formal, ~rocedures of the 1996 Telecommunications Act will be held in abeyance. Northland has not waived and does not intend to waive any of its renewal righ~s set forth in the 1996 Telecommunications Act. Sincerely, NOR~ CABLE 'l'~ .~VISION, INC. Michael W. Robecge Operations Manager, Western Division ]~.nclosur~ Cc: Richard C. T. Li, Metropolitan Communications Consultams Pete C-rigorieff, Northland Laura Williams, Northland Richard .1'. I)yste, Northland Di6~b From: LarTy Dunbar To: GcUTLER, MQUINN, BUPTON, YZIOMKOW, TSMITH,' CKNUTSO... Date: 8/27/01 4:18pm Subject: Revised Franchise Renewal MestJng Schedule Our prediction about the fast-track schedule was on targeL Please review the attached for the most current schedule. NORTHLAND COMMUNI TIONS . CORPORATION : 1201 Third Avenue, Suite 3600 VIA CERTIFIED MAIL RETURN RECEI~OT REOUESTED Seattle, Washington 96101 FAX (206) 623-9015 Augest 31, 2001 (2O6) 621-1~1 Power Resources Manager City of Port Angelas 321 East Fifth Sa-eet Port Angeles, WA 98362-0217 VIA E-MAlL & U.S. Mail RE: Info,mud Proposal_ for the Renewal of Cable Franchise I was hoping to catch you on the phone today, as I wanted to update you on our efforts in responding to file firsl draft of '~ proposed renewal of Northland's cable television franchise in Pon As we discussed last week, it is indeed taking us longer to get through the fu'st draft of franchise proposal. We have received, and appreciate the opportunity to view the draft Needs Analyal~ and Asse~sm~ut as pait of our review prece~. Unfurttmately, I do not believe that we will have all of our senior management team's input.to you prior to Our scheduled meeting on Wednesday, Septemb~ l~*' as many people here have been anavailable or out on vacation. Neve~helus$, we are seriously and thoroughly reviewing the document, realizing that time is of the essence to meet your schedule with th~ Utility Advisory Corem/flee and ~he Port Angeles Works Committee meetings scheduled for Sep~cfl)er That said, I would like to propose tha~ we do not meet on Wednesday, and instead let us use ~ time to fully t'mish our markup for your subsequent review. I would also recommend ~at we meet aftel' yolir receipt of our comments so that we can maintain a timely schedule and proceed with the franchise renewal efforts. ]~orth]and's goal remains to renew the cable television franchise under ~ and conditions that are beneficial to both parties, In order to accomplish this, we want to be absolutely sure that we understand the City of Port Angeles's desires, and that we are able to anlculate ou~ to you. To i.~llusirate this voint, we believe that the City's pilot project should be incorporated into our rebuild ._plans so that any and ail cost efficiencies can be maximized:. We ale 'of course, continuing with onr design, and cannot over e.mphasize the potential benefits of including the City's needs into this phase of oor upgrade. I believe that both parties are committed to bringing all of this together as pa~ of the franchise renewal prece~. Again Larry, I really appreciate all of your assistance and support in developing this format in which we can proceed to renew the cable television franchise under informal negotiations. Jim ~o reiterate, the fo? procedures of the 1996 Telecommunications Act will be held in abeyance, and Di62b North]and has nc~ waived and docs not intend to waive any of i~s renewal rights set forth in the 1996 T¢lecommunicafion~ Act. Sincerely, NORTHLAND CABLE 'j'~:, -{WISION, INC. M~clmel W. Roberg~ Ogeratioas Maaagzr, Wesm-~ Divi,ion Cc: Richard C. T. I..i, Metropolitan Conmmaicafions Consultant~ Pete G~igorlcff, Northland Laura W~IU~m% North]ami Richard L Dyste, Nonhlaml Di/79b.doc Di62b WASHINGTON, U.S.A. COMMITTEE MEMO DAT~: Septembe~ 10, 2001 TO: UTILITY ADVISORY COMMJ-I-I~£ PO~T ~GELIE$ WORY~! COMMrFFEE Gov~.~r ~ Eovc~r~o~,~. A~ Aov~soaY Co~rrmz FROM: Larry Dunbar, Powes Resources Manage' SU~IZCT: Cable Television and Tclecomraunications Needs and Interests Repoxt ~ Acceptance oftbe Cable Television and Telecommunications Needs and Interests Report will conclude thc public proceeding phase of the formal cable television renewal process. The report is based on considerable input received from a public involvement/information ,rognun. Thc next step of the cable television renewal process is to request the cable operator to ,rcpare and submit a formal proposal that reasonably reflects the Commurdty's future cable- elated needs and interests taking into consideration the cost to meet those eeommendztio~' Recommend that City Council accept ~e Cable Television al~d Telecommunications Needs sBd Interests Report~ .and authorize staff to request a fo~nal 10roposa! from the cable operator to reasonably meet future Cable-related needs and interests as identified IB the attached report. ~ On December 15, 1987, City Council approved a fi~en-year non- exclusive cable television franchise that will expire on September 30, 2003. On October 3, 2000, thc cable operator requested its franchise be renewed in accordance with the formal procedur~ of thc Cable Communications Policy Act (Act). On October 17, 2000. the City Council approved a professional services agreement with Metropolitan Communications Consultants (MCC) that included a cable television and telecommunications public development of a draft cable television franchise for renewal negotiations. On February 20, 2001, Council was advised that the public proceeding must commence by April 1, 2001 in orde~ to preserve thc City's authority under thc Act. On May 22, 2001, thc City Council approved professional services agreements with MCC the law firm of Dow, Cogburn and Friedman, which has since then been acquired byth¢ law film of Winstcad, Sechrest & Minick, for technical and legal services during the cable television franchise renewal negotiations. On July 26, 2001, the cable operator requested the City expedite the renewal o.f its franchise prior to completion of an upgrade of their cable television network, which is antic~patad by the 2nd qua~e~ of 2002. Sq>tember 18, 2001 City Council Memo RE: Cable Television and Telecommunications Needs and Interests Report Page 2 Cable telev/sion needs and interests The cable television findings and recommendations are included in section A of the attached Cable Television and Telecommunications Needs and Interests Report. A summary of the future cable-related community needs and interests recommendations is included as Atiachmeot A. The draft cable television l~anchise (Section H of the attached report) was prepared by Metropolitan Communications Consultants and was reviewed by the law Fu'm of Winstead. Sechrest'& Minick. The Cable Television and Telecommunications Needs and Interests Report has been shared with the Cable Operator, A formal three-st~p process is used to renew a franchise in accordance with the 1984 Cable Communications Act (s~e Attachment B). The Act allows for informal and formal renewal procedures._ In_fo_rmal nq~otiations will continue durin8 the formal submittal of a proposal., The formal procedures are being followed to maintain the City's authority granted by the Act The first-step of the formal process was a public proceeding to assess the cable operator's performance and compliance with the current franchise and determine the future cable-relat~i nexis and interests of the community. Telecommunications needs and interests The findings and reCOmmendations from a business survey and a needs and solutions workshop conducted earlier this year are summarized in section D of the Cable Television and Telecommunications Needs and Interests Report. The data collected under this effo~ were used as part of the City's telecommunications business planning analyses. The Cable Television and Telecommunications Nc. ds and Interests Report (excluding the appandic~s) was available on the City's intemat telecommunications portal for telecomlntmications service providers on September 5, 2001. Telecommunications s~rvic~ providers will be formally invited to submit proposals to the City later this year under the City/Telephone Parmemhip, and City/Cable/Telephone consonium. The data and infonnatioll provided in this report will be important to service providers that consider re.ponaing; individually or as a consortium, to [he City's forthcoming request for proposal. ,Attachment A Summary of future cable related community needs and interests recommendations Suhycriber Based on subscriber needs and interests, reserving thc right to regulate rate~, Needs and even though the City has only limited rate regulation authority, is recommended. Interests Thc minimum analog channel capacity should be at least 70 activated channels. The City should establish minimum system reliability and performance standards and minimum programming requirements roi' local, regional and national news and sport~. Subscribrr shall 1~ notified in advance of channel lineup chang~ and should be periodically surveyed on pmgrammlng need~ and interest. Standards should also be set for obscenity, parental control device~, and closed caption signals. Subscriber The proposed sub~oribel' sel~ice stlmdard~ ~ based on Federal Communication8 Service Commission standards. The recommended standards addre~ imtallation~, Standards service interruptions and other service problerrm, appointment~, notice~ and subscriber communicatiorm, disconnection of service, deposits/refund~credit~, rat,s/foe~charl~es, and privacy protections. Franchise To provide motivation for the cable operator to comply.with the tenure of tbe Violat~'ons franchise, liquidated damages should be paid to the City for Franchi~ violatiorm. Reporting It is recommended that the cable operator establish a public relations program Requirementx and increase the frequency of City reporting. Performance comparlsona to Federal Commun/cations Commission benchmarks shall be includmt. Acces~ The franchise ~hould require up to three access channels. The University of Channelr Washington conveyed it~ interest to the City in making UWTV available in Port Angeles. The cable operator should provide the City funds for an adequate educational and ~ovemment access charmcl system. Community An activated cable television drop and cable modem service should be provided, Needs and at no cost, to all primary and secondary schools, institutions of higher education, ]ntere~tr and ~ovcmmental sites. An emerlFncy alert s~,stem should al~o be providmL germ A minimum non-renewable and non-exclusive t~,m of four ye, ara is recommended if there is no new capital investment in cable plant upgrade by the cable operator, specifically including the broadband network, cable modem service, and institutional scrvices.~ A six-year extension is recommended anbject to completion and City accvptance of the upgrade within nine montha effective date of the initial four-year term of the renewed franchiae. A five-year extension beyond the six-year extended term is also possible for any additional City required up~'ade. Thc maximum term recommended is fifteen.ye-ara. Franchise Continuation of the 5% franchise fee is recommended. The franchise foe will i~ Fee allowed to be credited against any public utility tax. Utility Tax The City does not currently collect a public utility lax on cable television services. A 6.0% public utility tax is recommended if there is no new capitol investment in the cable plant upgrade by the cable operator. Institutional The franchise should require the cable operator to provide an institutional Network network capable of bi-directional voice, data, and video between all co-imeeted i sites desi~[nated by*he City. ~Franchise 'The City should designate and assigl~ staff, support and funding for cable Management television franchise management. Franchise management dutie~ would be to monitor and ovemee fulfillment by the cable operator of im obligations under the franchise. Attachment B Formal franchise renewal process I Cable OPerator i Staue 2 Renewal Request '" Proposal Administrative Negotiations Proceeding Public Proceeding Pmtimlnal7 Acceptable Financial, Assessment to Derby Past Performance Legal, Technical Abllity~.J I Franchise Rerlewal Needs end Interests Future Needs and Interest~ Reasonably Met? Futura Needs & Public Notice Interests Report Franchise Adoption Substantial Franchise Compliance & Acceptable Service ' Ouaiity Request Informal/Formal ........ Proposal Larry Dunbar ,, From: pete@northlandtv.com Sent: Thursday, September 13, 2001 2:59 PM To: Lan'y Dunbar Subject: Re: Just Checking... Larry we hope to have our mark up to you by the end of next week. ~rom.. "Lar~ ~ar" <pa2ig~t~ci.~r~-ange~es.~a.ue> To: "Mike Robe~e" <~o~rge~orthlandco.com>; "Pe:e Grtgorieff <pe:e~northland~v.com>; "Mike Sturgeon" <MikeSturgeonenor:h[and[v.c~> Sen~: We~eeda7, Sep~e~r 12, 2001 5~05 ~ > Mike, Pe:e and Mike, > I wac ~ndertng how your review of :he negotiations dra~[ do > you an:icipate ~ will receive ~ur co~en:e and suggea:tonsT ~ ~ have > nego:iatione schedule in mind? > B~, I am no: going to ~ available on ~/14, 9/17 and 9/27-10/5. > Lar~ Dunbar , From: Larry Dunbar [palight~ci.port-angeles.wa.us] Sent: Thursday, September 13, 2001 11:22 AM To: Pete Grigorieff (E-mail); Mike Sturgeon Cc: Richard Li; Mike Roberge Subject: I-Net Map Pete and Mike, We prepared a map of the I-Net sites and will drop it by your office today (ineludi~g a cd copy). The map identifies the locatlo~ of all sites in exhibit B of the draft negotiations agreement. We hope it is useful as you proceed with design. Larry 25 WASHINGTON, U.S.A. CiTY COUNCIL MEMO DATI~: September 18, 2001 To: MAYOR DOYLE AND CITY COUNCIL I~OM: Glenn A. Cutler, Director of Public Works and Utilities SUI~.CT: Cable Television and TelecommUnications Needs and Interests Report Summary,: Acceptance of the Cable Television and Telecommunications Needs and Interests Report will conclude the public proceeding phase of the formal cable television renewal process. The report is based on considerable input received ~om a public involvement/information ~rogram. The next step of the cable television renewal process is to request the cable operator to ~repare and submit a formal proposal that reasonably reflects the Community's future cable- ' t s .... · elated needs and m ere ts taking rata consideration the cost to meet those needs. Recommendation: That City Council accept the Cable Television and Telecommunications Needs and Interests Report, and authorize staffto request a formal proposal from the cable operator to reasonably meet future cable-related needs and interests as identified in the attached report. ~ On Decembex 15, 1987, City Council approved a fifteen-year non- exclusive cable television franchise that will expire on September 30, 2003. On October $, 2000, the cable operator requested its franch/se be renewed in accordance with the formal procedures of the Cable Communications Policy Act (Act). On October 17, 2000, the City Council approved a professional services agreement with Metropolitan Communications Consultants (MCC') that included a cable television and telecommunications public proceeding and development of a draft cable television franchise for renewal negotiations. On February 20, 2001, Council was advised that the public proceeding must commence by April 1, 2001 in to preserve the City's authority under the Act. On May 22, 2001, the City Council approved professional services agreements with MCC and the law firm of Dow, Cogbum and Friedman, which has since then been acquired by the law firm of Winstemi, Sechrest & Minink, for technical and legal services during the cable television fi-anchise renewal negotiations. On July 26, 2001, the cable operator requested the City expedite the renewal of its franchise prior to completion of an upgrade of their, cable television network, which is anticipated by the 2na quarter of 2002. At a special joint meeting of the Utility Advim:gy Committee, Port Angeles Works! Committee, and Government and Educational Access Advisory Committee on September 10, 2001, the City Council recommendation stated above was endorsed. September 18, 2001 City Council Memo RE: Cable Television and Telecommunications Needs and Interests Report Page 2 Cable television needs and interests The cable television findings and recommendations are included in section A of thc attached Cable Television and Telecommunications Needs and Interests Report. A summary of the future cable-related community needs and interests recommendations is included as Attachmea~t A. The draft cable television franchise (Section H of the attached report) was prepared by Metropolitan Communications Consultants and was reviewed by the law firm of Winstead, Sec~ & Minick. The Cable Television and Telecommunications Needs and Interests Report has been shared with the Cable Operator. A formal three-step process is used to renew a franchise in accordance with the 1984 Cable Communications Act (see Attachment B). The Act allows for informal and formal renewal procedures. Informal negotiations will continue during the formal submittal ora propoint. The formal procedures are being followed to maintain the City's authority granted by the Act, The first-step of the formal process wns a public proceeding to assess the cable operator's performance and compliance with the current franchise and determine the future cable-r~lated needs and interests o£the community. Telecommnnlcations needs and interests The findings and recommendations fi.om a business survey and a needs and solufiom workshop conducted earlier this year are summarized in section D of the Cable Television and Telecommunications Need~ and Interests Report. The data collected, under this effort were ~ as part of the City's telecommanications business planning analy~e~. The Cable Television and Telecommunications Needs and Interests Report (excluding the appendices) was available on the City's intemet telecommunications portal for telecommunications service providm, s on September 5, 2001. Telecommunications service provider~ will be formally invited to submit proposals to the City later this year und,r the City/Telephone Partnership, and City/Cable/Telephone consortium. The data and information provided in this report will be important to service providvcs that consider responding, individually or as a consortium, to the City's forthcoming request for proposal. Attachment A Summary of future cable related community needs and interests recommendations ~ubscriber Based on subscriber needs and interests, reserving the fight to regulate rates, Needs and even though the City has only limited rate regulation authority, is recommended. Interests The minimum analog channel capacity should be at least 70 activated channels. The City should establish minimum system reliability and performance standards and minimum programming requirements for local, regional and national news ! and sports. Subscriber shall be notified in advance of channel lineup changes and should be periodically surveyed on programming needs and interests. Standards should also be set for obscenity, parental control devices, and closed caption signals. Subscriber The proposed subscriber service standards are based on Federal Communication* Service Commission standards. The recommended standards address installations, Standards ;a'vice interruptions and other service pwblems, appointments, notices and subscriber communications, disconnection of service, deposits/refunds/credits, rates/fees/charges, and privacy protections. FrancM.~e To provide motivation for the cable operator to comply with the t~m~ of the 7iolations franchise, liquidated damages should be paid to the City for Franchise violations. [Reporting It is recommended that the cable operator establish a public relations program Requirements and increase the frequency of City reporting. Performance comparisons to Federal Communications Commission benchmarks shall be included. Access The franchise should require up to three access channels. The University of Channel~ Washington conveyed its interest to the City in making UWTV available in Port Angeles. The cable operator should provide the City funds for an adequate educational and ~ovemmer!.t access channel system. Community An activated cable television drop and cable modem service should be provid, ed, Needs and at no cost, to ali primary and secondary schools, institutions of higher education, Interests and l~overnmental sites. An emerl~ency alert system should also be provided. Term A minimum non-renewable and non-exclusive tca'm of four yea~ ia recommended if there is no new capital investment in cable plant upgrade by the I cable operator, specifically including the broadband network, cable modem! service, and institutional services. A six-year extension is reconunended subject ! to completion and City acceptance of the upgrade within nine months after the effective date of the initial four-year term of the renewed franchise. A five-year ! extension beyond the six-year extended tcn-m is also possible for any additional City required upi!~rade. The maximum term recommended is fifteen years. FrancM~e Continuation of the 5% franchise fee is recommended. The franchise fee will be Fee allowed to be credited ai~ainst any public utility tax. Utility Tax Thc City does not currently collect a public utility tax on cable television services. A 6.0% public utility tax is recommended if there is no new capital !nvestment in the cable plant up/p'ade by the cable operator. Institutional The franchise should require the cable operator to provide an institutional Network network capable of bi-directional voice, data, and video between all connected sites desil~nated by the City. Franchise The City should designate and assign staff, support and funding for cable Management television franchise management. Franchise management duties would be to monitor and oversee fulfillment by the cable operator of its obligations under the franchise. Attachment B Formal franchise renewal process Renewal Request '" Administrative Proceeding Stag~e 1 Public Proceeding Preliminary Acceptable Financial, Assessment to Deny Past Performance : Legal, Technical Ability Franchise Renewal & FutUre Needs Needs end Interests and Interests Reasonably Met? 1 Futura Needs & Public Notice Interests Report Franchise Adoption ~ubstanfial Franchise Compliance & Acceptable Service , Quality Request Infomml/Formal ....... Proposal From: LarTy Dunbar TO: SMCLAIN, GCUTLER, MQUINN, BUPTON, YZIOMKOW, TSMITH... Dm: 9/19/01 9:28em Subject: CATV Franchise Renewal Status Rel:x~t The last time we met with Northland was on 8/21/01. All tentatively scheduled meetings to negotiate the franchlae have been postponed. All management oversight team meeting have also been postponed. Yesterday I received word from Northland that they will provide the/r response to our draft informal pmpesal by the end of this week. Northland is taking more time to mvlaw and respond to our draft informal proposal (that we delivered to them on 8/21/01) than anticipated. After we have received and reviewed their comments we will schedule a management oversight team meeting seeking guidance before proceeding with our first negotiation sosslon. We will inv/te both Lam/Doyle end On, lite Campbell to the managment overs/ght team meeting. We now hope to finish negotiations by ~ end of October. I anticipate that wa will need to soheduJe a management oversight team meeting the week of September 24th. I will noOt'y you of future tentative meeting dates for the management overa/ght teem and negotiation sessions with Northland in the near fijtum. ?_7 Larry Dunbar [palight@ci.port.*angeles.wa.us] From: Fr day, September 21,2001 3:56 PM Sent: pete Grigorieff (E-ma); Mike Roberge To: Informal Proposal Comments Subject: pete and Mike, Should I expect to receive your coments today? Larry Larr~ Dunbar , From: Mike Roberge [mroberge~northlandco.com] Sent: Friday, September 21, 2001 5:16 PM To: Larry Dunbar; Pete Grigorieff (E-mail) Subject: RE: informal Proposal Comments We're going to get our mark up out to you on Monday. We still need the weekend for a final review. Z'll give you a call. Thanks. Mike ..... Original Message ..... From: Larry Dunbar [mailto:palighteci.port-angeles.wa.us] Sent: Friday, Septet&bet 21, 2001 3:$6 PM To: Pete Grigorieff (E-mll); Mike Roberge subject: Informal Proposal Comments Pete and Mike, Should I expect to receive your comments today? ~arry Larr~ Dunbar .... .... From: Larry Dunbar [palJght@ci.port.angeJes.wa.us] Sent: Friday, September 21, 2001 11:46 AM To: Mike Sturgeon; Pete Grigodeff (E-mail); Mike Roberge Cc: Scott McLain (E-mail); Richard Li; Clarence West Subject: Request for Formal Proposal Dear Hike, Pete and Hike~ Last night the City Council accepted.the Cable Television Needs and Interests Report, concluding the public proceeding stage oS the formal renewal procedures per the Cable Communications Act. The City council also authorized staff to request a formal proposal that re&eonably reflects the Community's Suture cable-related needs and ~ntereeta taken9 ~nto consideration the cost to meet those needs. O~ behalf of the City, I hereby request that you sub~t s ~ropoeal to the City 4fl. accordance with the formal renewal procedure?, which shall be considered due no later %~tober 22, 2001. ' The City ie still interested in informal negotietione,..which may be he~d concurrent wJ~h --~eformal renewal proceduree~- Larry From: Larry Dunbar 'Fo: SMCLAIN, GCUTLER, MQUINN, BUPTON, YZIOMKOW, TSMITH... Date: 9/25/01 11:52am Sub, leer: CATV Franchise Renewal Status Report I just received word from Pete Grtgodeff at Northland t~hat they will provide their response to our draft Infon~al proposal eedy next week, Northland's legal staff have not been able to focus on Port Angeles due to a pending network acquisition. Pete indicated that alter this Friday their legal staff will be able to focus on Port Angeles. After we have received and reviewed their comments we will schedule e management oversight team meeting seeking guidance before proceeding with our flint negotiation session. At this point my best estimate is a management overnight teem meeting will need to be scheduled the week of October 8th. From: Larry Dunbar Te: SMCLAIN, GCUTLER, MQUINN, BUPTON, YZlOMKOW, TSMITH... Date: 10/10/01 11:37am Subject: CATV Franchise Renewal Sta~s Report I spoke with M~ke Roberge at Northland this morning and he said that their legal staff has mviewecl the City's proposed draft frarlchise and now they are preparing an edited document. They plan to have an executive session today and share their response with the City tomorrow. After we have received and reviewed their comments we Will schedule a management oversight team meeting seeking guidance before proceeding with our first negotia[~:~n session. At this point my best estimate ia · management oversight team meeting will need to be scheduled the week of October tSth. Larr~ Dunbar From: Larry Dunbar [palight@ci.port-angsles.wa.us] Sent: Thursday, October 18, 2001 1:37 PM To: Mike Roberge; Pete Grigorieff (E-mail) Subject: Northland Response How is your response on the informal proposal coming? Do you have an ETA? As a reminder, your forma! proposal is due on October 22nd (this coming Monday). Larry Dunbar , , Froro: Mike Roberge [mroberge@northlandco.com] Sent: Friday, October 19, 2001 3:17 PM To: palight~ci.port-angeles.wa.ua Cc: K. E Love; Pete Grigorieff; Laura Willians; Kellie Sera; Nick Allen Subject: FW: Northland Cable Television, Inc. - City of Port Angeles Franchise Renewal Importance: High Enclosed are throe documents for your review. The first is a cover letter. A copy of this letter is also being sent to you under separate cover. The other two documents are a clean and a black-l/ned versinn of the Cites proposed franch/se a/r¢~nent/ncorporat/ng Northland's chants. As we have discussed, this process has taken considerable time and effort on our part, and we appreciate your understanding. Please do not hesitate to contact either Pete or myself if we can provide you with any additiuna] information. Again Larry, we appreciate yom' pati~ce, and we both certainly look forward to working with you on the ~ranchise r~ewal. Tha~l~ again. M~e Roberge Noxthhnd Communications 206.621.1351 mmber~e~orthlandco, co;m VIJ E-M2tlL AND CERTIFIED M~IIL/RETUP&r RECEJPT REQUESTED October 19, 2001 Larry Dunbar, Power Resources Manager City of Port Angeles 321 East Fifth Street Port Angeles, Washington 98362-0217 Re: Northland Cable Television. Inc. ("Nortlllartd") Dear Mr. Dunbar: As you have requested, attached is a clean and blacklined version of the City's proposed franchise agreement incorporating Northland's changes, which we understand meets thc City's requirement for Northland's ~formal" renewal proposal due October 22. Northland would like to clarify that pursuant to its letter, dated October 3, 2000, Northland requested that thc formal renewal proceedings be commenced, pursuant to Section 62601) of Cable Communications Policy Act of 1984, 47 U.S;C. 546, as amended (the "Act"), however, we also request~ that the City enter into informal renewal discussions. During informal renewal discnssions~ .th.e formal Rrocedures of the Act will continue to be held in' abeyance to allow for the completion of informal negotiations. Should the informal negotiations fail, the formal procedures, as specified in the Act, will commence. It was never Northland's intent for informal negotiations and formal negotiations to be held coocur~ntly. To do so would defeat the purposes end benefits of the informal franchise renewal proofs. Accordingly, it is Northland's understanding that the City would like to continue with informal discussions, as set forth in Mayor Doyle's letter of July 30, 2001, and confirmed by Nolahlend in my letter of Angust 24, 2001. If our understanding is not correct, please advise us immediately. Please forward your comments on and changes to our mark-up to my attention at your earliest convellienoe. If you have any questions or require additional information, please do not hcsitato to contact me. We look forward to working with you and the City to negotiate a mutually acceptable franchise renewal. Very truly yours, Michael W. Roberge Operations Manager - Western Division cc(via email): Pete Grigorieff Latwa N. Williams Kellie D. Sera Dk41 ar~ Dunbar , rom: West, Clarence [CWest@winstead.com] ;ent: Tuesday, October 23, 2001 7:31 AM 'o: 'Larry Dunbar' ~c: Richard Li (E-mai0 ~ubje~t: RE: Northland Cable Television, Inc, - City of Port Angeles Franchise Renewal ~hile I have not reviewed the Cable Operators Draft, I did review ~he ~e should reply to them that the "infor~l" and .formal "process nmning concurrently. Row that they have reel0onded '[ormally", the city , under federal law to preeez'~e your rightS, should .orovide 9rom~t public'notice of such ~roposal, an~ then the City hal 4 months-to to either "informally" negotiate aFranchtse, or to "formally# reject the Proposal we ~ust 9ot.-absent an agreed extension, which I am not sure ~ould be agreed Co under federal law. (4? USC Gcc. 546 (c)(1)) - .37 'W A S H I N GT O N; U. $.'A..* PUBLIC VVORKS'& 'UTILITIES: DEPARTMENT "ViA .E-MAIL AND CERTIFIED MAll (Recei.pt f/7000 0520 0015 2715 0658). · October 24,200~1 · Mr. Michael W. Ro,~rge ' . . Operations.Manager-.Westem Division . . :. "-' Northland;Cable. Television; Inc. 1'201 Third. Avenue. Suite 3600. Seattle, WA g8~101 . : Re.:. 'Northland Cable Television; !nc. F0rmai Renewal Proposal ~ 'Dear Mr: Roberge, Thank you' for. Submitting your fore, al renewal proP~sal.tO the city:. Please'. be · advised th_a[ the informal and*formal processes are proceeding concurrently. The City,. under federal'law to. preserve its rights, ~11 pro. vide prompt public' notice of '.~your formal-renewal ·proposal 'In the event: that informal-'hegotiefions'.are: · unsUcqpsSful, the. City .has .iJnfil FebnJary 19, '2002: to either aocept. Northland's. formal 'renewal proposal' or~.preliminarily.conclude that it .dOes not: reasonably meet our .futura cable .ralated needs, per the City's August.31,.2001 needs am~. 'int&reste mporL · .' . ,. ". .: ... The City and'Northland:have four'month~: ending Febmary'19~ .2002 to complete .' "~;" informal .negotiations'prior 'to new action on the "[ormal"'.proceu: I will forward "informal" comments on your October 19; 2001 response, in the near future.. I look forward t~ working. With'you ~b ne~otiate a mHtualiy acceptabl~ .fr~.. nchisM .. . . 'Sincerely," " '. ; ' poWer Resource~ Manager '.'. ': :321 EAST-FIFTH STREET ® P. O."BOX.I JSo6 PORT ANGELES, WA'gS36~.;02.1T ' "' PHONe; 360-4'17-4S05 · FAX; 360-417-.4542 · T'I':Y: 360°41:7-46~1.5 E-MAIL:. P U BWOR KS<~K:::I. PORT'A NG EL-ES': WA. U.S ' ,30 Larry Dunbar [palight@ci.porl-angeles.wa.us] From: Monday, October 29, 2001 3:48 PM Sent: Mike Roberge To: October 19th biacklined enclosure Subject: ~ike, I received your letter by certified mail today without the enclosure. Please send the enclosure at your earliest convenience. Larry NOI' I'HL4ND COMMUNIQtTIONS . COEPORATION VIA E-MAIL AND CERTIFIED MAll/RETURN RECEIPT REQ..UESTI:..D ~201 Thi~l Avenue, Suite 3600 Seattle, Washington 98101 FAX (2O6) 623-9015 October ]9, 200] (2o6) ~2~-~5~ Lan7 Dunbar, Power Resources Manager City of Pon AngeJes 321 East Fifth Sheet Pon Angeles, Washington 98362-0217 Re: Northland Cable Television. Inc. ("Northland"l Dear Mr. Dunbar:. As you have requested, attached is a clean and blacklined version of the City's proposed franchise agreera~nt incorporating Northland's changes, which we understand meets the City's ~xluirement for · ' Northland's "formal" renewal proposal due Octob~ 22. Northland would like to clarify that pursuant to its letter, dated October 3, 2000, Northland requested that the formal renewal proceedings be commenced, pursuant to Section 626(h) 'of Cable Communications Policy Act of 1984, 47 U.$.C. 546, as amended (the "Act"), however, we also r~luasted that the City enter into informal renewal discussions. During informal renewal discussions, th~ formal procedures of the Act will continue to be held in abeyance to allow for the completion of informal negotiations. Should the informal negotiations fail, the formal procedures, as specified in the Act, will commence. It was.never Northland's intent for infomml negotiations and formal negotiations to he held concurrently. To do so would defeat the purposes and benefits of the informal franchise renewal pmceas. Accordingly, it is Northland's understanding that the City would like to continue with informal discussions, as set forth in Mayor Doyle's letter of Su/y 30, 2001, and confirmed by Northland in my letler of August 24, 2001. If our understanding is not correct, please advise us immediately. Please forward your comments on and changes to our mark-up to my attention at your earliest convenience. If you have any questions or require additional information, please do not hesitate to contact ma. We look forward to working with you and the City to negotiate a mutually acceptable franchise renewal. Very truly yours, Michael W. Roberge Operations Manurer - Wesrem Division cc(via emil): l~t~ Origorieff Laura lq. Williama K¢lli~ D. ~ eDk41 Larr~ Dunbar . From: Larry Dunbar [palight@ci.port-engeles.wa.us] Sent: Tuesday, October 30, 2001 3:55 PM To: Clarence West Cc: Scott McLain (E-mail); Richard Li Subject: Northland Confusion I just got off the phone w/th Mike Roberge of Northland. They are confused about my last letter in reference to the formal process. Mike is going to talk to his lawyer and I shared your name and invited her to call you. Although our for~l proposal request and deadline, and their formal proposal response was clearly stated, Mike told me that they did not intend that the formal proposal they provided the City on October 19th was under the formal process. Sounde strange huh? Mike went on to say that they would like an extension to the formal proposal deadline and will likely petition the City for it. I told hims that I was not sure if we could do that? I would hesistate to guess that they recently came to the realization that we may deny their formal proposal. They probably want to enhance their formal propoa&l. NOETH ND C BLE TELEVISION, INC. 1201 Third Avenue, Suite 3600 Searle, Washington 98101 (2o6) Vid FEDER,tL EXT~RESS October 3 I, 2001 ' Larry Dunbar, Power Resources Manager Public Works & Utilities Department City of Port Angele~ 321 East Fifth Street Post Office Box ] 150 Po~'t Angeles, Washington 983/52-0217 Re: Northland Cable Television, Inc. ("Northland") Dear Larry: As a follow up to our .telephone conversation yesterday, 1 wanted to provide you with some additional information as well as clarify a couple of points we discussed. First of all, thank you for your letter dated October 24, 2001. We too look forward to a successful franchise renewal, and will meet with you en Thursday, November 15, 2001 at I 1:00AM to review and explain our suggested changes to thc City's cable television franchise draft. Again, it remains our intent to proceed as we have to date, in an informal process, and look forward to crafting a mutually beneficial franchise agreement. As you requested, I have enclosed a hard copy of our mark-up of thc City's "Informal Proposal For The Renewal Of Cable Franchise" originally presented to us during our meeting on August 21, 2001. This mark-up was originally sent m you electronically on October 19, 2001. As set forth and more fully explained in Northland's cover letter of October 19, 2001, and again during our eonversatiou yesterday, it has been Northland's understanding and intent, based on the past history of various discussions and correspondence with you, Mayor Doyle and other representatives of the City of Port Angeles, that Northland and thc City are proceeding under "informal" negotiations and that "formal" proceedings would be held in abeyance. Accordingly, we were surprised, and remain unsure as to how to proceed under be~ an informal process and a formal process, as described in your letter of October' 24~'. Our conwrsatmn yesterday confirmed that there may be serious misunderstandings with respect to the franchise negotiation proceedings. In fairness, and within the. spirit of all of our discussions to date, we must come to an understanding as to how we move forward. As we discussed, Northland believes the most efficient and cost-effective process being the "informal" route upon which we have already embarked. Running both the "formal" and "informal" processes concurrently would be inefficient and unduly burdansome to all DI01d " NO~THL~ND O~BLE TELEVISION, INC. Larry Dunbar, Power Resources Manager October 3 I, 2001 Page 2 parties involved. To do so would defeat the purposes and benefits of the informal franchise renewal process. By our letter of October 19', Northland submitted a mark-up of the City's proposed cable television franchise renewal ordinance, incorporating Northland's proposed changes, all during what we understood to be "informal" negotiations. Yes, we r~ferenced the City's requested "formal" franchise proposal filing deadline, but submitted our informal mark-up by such deadline as n filing date obligation, and subsequent plaeeholder for our ongoing negotiations. Again, we believe that the informal process alone should continue for the time being, and a formal proposal should not be required unle-.s and until informal negotiations reach an impasse. In the event the City deems that "formal" renewal proceedings are already in progress, our markup of the City's proposal provided to the City u.n, der cover letter, dated October 19', shall then constitute Northland's response to such "formal" proceedings. We would hope that we would be afforded an extension nftime and the reasonable opportunity to supplement our October 19' markup. Given the obvious confusion to date, due process would certainly require that this opportunity be extended. Larry, at your suggestion, I have placed a call to Mr. Clarence Wes% the City's Counsel for this matter. I am sure you will agree that it is in the interests of both the City and Northland to proceed with a common procedural understanding. Lastly, we will supplement our October 19' markup with revised Exhibits B, D and E, under separat~ cover. I am remain available at your convenience to discuss this matter further, and would be most interested to hear any further thoughts and ideas you may have on how the City and Northland may best proceed in light of the "informal" vs. "formal" procedural misunderstandings during this franchise renewal process. I look forward to talking with you in the near future. Very Iruly yours, Miel~el W. Roberge Operations M~nager- Western DiVision cc: Pete Grigorieff Laura N. Will/ams Kellie D. Sera DlOId 1201 Third Avenue, Suite 3600 ~attl~, Washington 98101 (206) 621-1351 Larr~ Dunbar From: Larry Dunbar [palight@ci.port-angeles.wa.us] Sent: Wednesday, October 31, 2001 8:27 AM To: Mike Roberge; Pete Grigorieff (E-mail) Subject: Formal Proposal 101gOl~odf Mike and Pete, Attached is your formal proposal. At your direction, I inserted exhibit e (insurance coverage). ! have also inserted our update to exhibit b (the one you included was Ollr draft and blank). Please send me your update to exhibit d as soon as possible (your formal proposal was blank) . we will be providing public notice of your formal proposal in the near future. I will need to be able to provide a complete copy to citizens upon request. Larry Larr~ Dunbar From: Larry Dunbar [palight~ci.port-angeles.wa.us] Sent: Thursday, November 01, 2001 9:01 AM To: Mike Roberge; Pete Grigorieff (E-mail) Subject: Formal Proposal Public Notice Mike and Pete, As required by law, we are providing public notice in this Sunday's paper (see attached ad)'. The formal proposal is available at ht~p .' //www. mcco. com/PortJ%ngelee/catv/catv_index, asp Your formal proposal will be updated for the new exhibit d promptly after yo~ provide it Larry Larr~ Dunbar From: Larry Dunbar [palight@ci.port-angeles.wa.us] Sent: Friday, November 02, 2001 10:08 AM To: Pete Grigorieff (E-mail); Mike Roberge Cc: Scott McLain (E-mail); Richard Li Subject: Meeting confirmation This measage is to confirm our telephone conference call aet for wednesday, Nove~ber ?th at 1=30-3PM. The City will originate the call. The City's main agenda item for the meeting is an opportu~ity to ask clarifying questions about your formal proposal. Wa would like to use your formal proposal aa the beginning point of our informal negotiations. I would like to maintain our appointment on Thursday, November lSth from 1-$PM (note revised atart t~me from 1lAM to 1PM), anticipating tha~ we can begin negotietiona at that meeting. From: Lar~y Dunbar To: SMCLAIN, GCUTLER, MQUINN, BUPTON, YZIOMKOW, TSMITH.,. Date: 11/2/01 2:17pm Subject: CATV Franchise Renewal Status Report On Monday, October 22nd, we received Northland's formal renewal proposal. We ara required to provide pub/lc notice of the formal proposal, which is scheduled in the PDN on 11/11/01. As for the formal renewal process, the City must either make · preliminary decision to accept Northland's formal proposal or deny it by February 19, 2002. There is nothing further the City nor Northland needs to do until February 19, 2002 under tbe formaJ renewal process. Prior to meeting with Northland to kick off the Informal renewal process, a management oversight teem meeting will be held on November 1301. You will receive a meeting agenda and a draft negotiation strategy (updated fi'om 8/15/0~1 negotiation strategy meeting) to review before the meeting. We have tentatively scheduled ~ flint Informal negotiation session with Northland on November 15, 2001. Please note that the formal and informal renewal processes am being held concurrently. Larry Dunbar [palight@ci.port-angeles.wa.us] From: Friday, November 02, 2001 10:18 AM Sent: Mike Roberge To: Scott McLain (E-mail); Pete Gdgorieff (E-mail); Richard Li Cc: public Notice Subject: Mike, at your request I was successful delaying the newspaper ad until next sunday. Please provide the update to the exhibit d before November 12th. pO ANG s ........ '~[A $ H [ N G.TO N', U..S.A. PLIEILIC WORKS & UTILITIES D£PARTM ENT M0r~day, November 5; 2001 '.VlA'E:MAIL ANDICERTIFIED MAIL. - · (RebeJpt # 7000 052000152715 0665~ Mr.:Michael W. R0berge . ' Operations Manager- Western Divisio~ Northland CabJe Television, Inc. 1201 Third Avenue, Suite 3600' 'Seattle, WA '98'101 .... Dear'Mr. Roberge, - ' . ' 'Thank you for -your letter, of October .31~ 2001 and for.alerting us of your concern' regarding the renewal p.roceduras. ...- The formal process began whe~'Northland made Its request to renelw thefrancttise on October. 3, '2000. In aCCOrdance with.the ~ormal pt0cedures.outlined bY the Cable Act 47 USC §546 (a}-(f), the City completed a' pablic .proc~eding.;to determine.-the' .community's cable-related needs .'and .interests, accepted the needs and interests report, and requested and established a deadline for your formal proposal per 47 USC §546 (a)(3). 'The City will be providing public notice of your proposal in the near future. per.47 USC'.§547 (c)(1);i The .City will.make a preliminary decision to renew Or deny your formal proposal :no .tater tha, n ,February .1.9, 2002. ;To my.knowledge, there is no further acti0.n needed on your part .or the City'~ to comply with ;[he"formal renewal Process dunng the next foul'.months. · . . .' · .i · In response to yodr conc~m,'the Cable.Act d6eS not provide for prbceeding 0nly ~ the informal process and p. ostponing the formal process. After the four-month ~tatutory'time frame, if there' is a "preliminary assessment" not t~ tenew~ absent ia ' request by you or:the City on it's own initiative to have an administrative heating, the -time. frame after .llate February 2002.is .up to the parties. ';The;City must and is _proc~edin.g With both informal and fo ,n~al proceedings c~nqurrentl~ dudn[:l this four- month Dened.. .. 'The informal, negotiation" will '.provide.. ample 'opportunity for both partie~.' to refine'. v~rious terms and conditions. I.'would".like to assure you of our .confideno~. that. with ~ both parties ac~ing in good faith,;as demo. nstrated to. date, that a mutually satisfactory and beneficial agreement can be workedout during the next.four months, 'p6wer Resources Manager · .~C~UIm~_ - -' ~-;[T · P. O. BOX ].l 5Q ' PORT -AN(~ELE$0 '~A 98S62~O2i? 'PHONE: 360,41.7-4805 · FAX.: 360-4 ~.7-4542 ·. TTY: 360-4 I '7'-464~ ' aim From: I_any Dunbar To: CKNUTSON Date: 11/6/01 1:10pm Subject: Northland Attorney Clarence received a cell from Non'hland's external legal counsel today in reference to the formal renewal procedures. Mr. Steve Hortwiz (spelling?), of the law firm Cole, Raywid, Washington D.C., seid that his client ~ the formal renewal procedures and that they den't want to be stuck with the formal franchise proposal they provided. Clarence said that Northland Is mad at the City and is considering litigation. Clarence assured him that the City Is following the .formal renewal requirements and that the City is not giving Northland a hard time. Clarence suggested, although he made It clear that he did not have the City's permission, that Northland submit another formal proposal, which we might consider. Clarence told me that we could mspend fo a another proposal ifh~nen we receive It, end perhaps if we should open It or return It to Northland. Clarence emphasized that the City is ready to proceed with informal negotiations. CC: SMCLAIN Larr~ Dunbar From: Larry Dunbar [palight@ci.port-angeles.wa.us] Sent: Wednesday, November 07, 2001 3:32 PM To: Mike Roberge Cc: Richard Li; Scott McLain (E--meff) Subject: Today's Clarifying Questions M~ke, AS a follow up to our conference call today, I am sharing the clarifying questions that I asked about your proposal. 1. What ia Northland's commitment to work with the City on its broadband/open access/cable modem/I-Net goals? 2. What is Northland's interest in "activating" the broac~band/open access/I-Net (Installing electronic equipment, operating and managing a network). Is Northland's proposal for dark fiber? 3. Is Northland willing to negotiate term? The City's proposal was for a 4 year basic term (no investment), and 6 year extended term (for broadband/open access/cable modem/I-Net investment). Northland's proposal was for a 15 year basic term (no investment), and 6 year extended term (for broadband/open access/cable modem/I-Net investment). 4. Is Northland willing to negotiate governmental/educational access? Is Northland willing to negotiate a capital contribution end ongoing governmental/educational access support? Mike, I believe I overlooked this question today. $. Northland deleted some sections/provisions of the City's proposal that are important to the City. Is Northland willing to negotiate the following? violations (12.3), reporting (section 11), exhibit d (reporting), reopener (section 13), broad categories of programming (6.2.3), educational pro~ramming (6.3.3), locally produced programming (6.3.1).. This is not in .inclusive list. We are looking forward to the inform1 negotiation and would like to further discuss the above items in greater detail when we meet next week. Larry Lar~ Dunbar From: Larry Dunbar [palight@ci.port-engeles.we.us} Sent: Friday, November 09, 2001 1:32 PM To: Mike Roberge Cc: Richard Li; Scott McLain (E-mai~) Subject: Formal Proposal Correction ~ike, At your request, I reviewed the formal proposal that you emailed me and the one that you sent by regular mail. I verified that the formal proposal we plan to distribute {upon citizen request) is consistent with the 10/19/01 document you provided. Exhibit B appears to be the same draft document we provided to you on 8/21/01. That document listed addresses to receive cable TV and I-Net connections, but did not specify which ones will be initially connected. The Exhibt B I placed in your proposal is an update provided by the City (which is substantially slmilar to the document shared with you on 8/21/01) that identifies those sites that will intitially receive cable T~ and I-Net connections- The new Exhibit E you provided was blank. I assumed that you wanted ua to incorporate the ordinances referred to in the franchise into the new exhibit E. I will wait for instructions from you before I make any changes to Exhibits B and E. You also mentioned that there may be other differences that need to be corrected. Please advise me of any corrections that need to be made to your formal proposal at your earl/est convenience. Larry NO HL,4ND BLE TELEVISION, INC, YI.4 E-.,V~]£ AND FF, DER4L F. XPRE~ 1201 Third Avenoe, Suite 3600 Seattle. Washington 98101 November 12, 2001 (20~) 62t-13Sl Larry Dunbar, Power Resources Manager Public Works & Utilities Department City of Port Ang~l~ 321 East.Fifth $~reet Post Office Box 1150 Port Angeles, Washington 98362-0217 Re: Northland Cable Television~ Inc. ('~lorthland")- Port Anl~eles, WashinKton We are in receipt of your letter of November 5~ az well as your e-mails of November 9'. As we have previously discussed, Northland's October 19, 2001 response ~h~ is posted on the City o£Port Angeles' w~bsite as "Formal Proposal for the Cable Television Franchise Renewal", is in fact no._~t the "formal proposal" as submitted by Northland to the City on October. 19, 2001. The "formal proposal" posted on the City's website was unilaterally changed from Northland"s submission of October 19. ~,ccordingly, our legal department did n hand mark-up of the changes made by the City to Northland's proposal. ]:ur your review, a copy of such markup along with a memorandum from our legal department is enclosed and identified as "Enclosure No. l". In nddltion, we have enclosed ns "Enclosure No. 2" a copy of Northland's October 19' submission, which includes Exhibits D and E, which were not previously included, as well as corrected Exhibit B. If Northland's submission of October 19~ is to be posted publicly ns "Formal Proposal for the Cable Television Franchise Renewal", then it should be the response Northland submitted on October 19, 2001. We are still very concerned about the "informal vs, formal" procedural misunderstandings and object to certain findings in the "Needs and Interes~ Report," particulerly that Northland wan not in substantial compliance with the material terms of its current franchise. We reserve all fights to contest these mattars in the future. W.e ah, ree~ however, that bes~ option at this point is to proceed with informal negctiafion~s with the expectation that a mutually beneficial result will be reached that will render moot our disagreements affecting the "furmal>' Ol~ion. If you would like to discuss this further, please do not hesitate to call. Michael W. Roberge Operations Manag*r - Western Division cc.' p~ Grigorieff Laura lq. Willi~n~ Kellie D. S~a DI35 Lar~ Dunbar ..... From: Lam/Dunbar [palight@ci.port-angele$.wa.u$] Sent: Tuesday, November 13, 2001 8:36 AM To: Mike Roberge Sub.~ect: RE: Formal Proposal Correction The Exibit B you Just sent is still blank, no eites have been identified to be provided CATV service or I-Net connections, The right-most columns have no check marks. Is your intent to provide all sites with CATV service and I-Net connections? Thank you for providingExhibit D/updated map. Exibit E (whtchmay be incorrectly marked Exhibit F) is still blank. Ie it Your intent that You will provide your insurance later? would that be subject to City review and approval? Please let me know how to correct your formal proposal. What you Just sent me appears to be the same thing you submitted on October 19th (except the updated map)? _Larr~ Dunbar From: Larry Dunbar [palight@cLport-angeles.wa.us] Sent: Wednesday, November 14, 2001 2:52 PM To: Mike Roberge Cc: Pete Grigorieff (E-mall) Subject: RE: Formal Proposal Correction ~ike, The updated formal proposal you provided will be posted to the City's websi:e promptly. Your proposal will replace the 8/21/2001 docu~nt the City edited with your 10/19/2001 revisions. Since :he sunday, November 10th public notice, there has only been one citizen :ha: requested a copy of the proposal. That citizen will receive the upas:ed document. BTW, your updated formal proposal Exhibit B still does not specify which si~aa will receive CAT~ service and I-Net connections. I recommend that you update i: again. I received the certificate of insurance that is to be included in the new Rxhibi: ~.; It appears that it ia your intent to substitute your certificate in place of :ha CiCy,s s:andard insurance requirements. I apolOgize for overlooking the various title case changes, aa.well as the tex~ ~ha: I inadvertently overlooked or deleted from your formal proposal. Thank you for catching mi, unintentional errors so promptly. Larry From: Larry Dunbar To: SMCLAIN, GCUTLER, MQUINN, BUPTON, Y'ZIOMKOW, TSMITH... Date: 11/16/01 2:56pm Subject: cABLE TELEVISION FRANCHISE NEGOTIATION DEBRIEF Yesterday afternoon Scott, Richard and Lany met with Northland's Mike R. and Pete G. The 2 main items of discussion (not negotiation) were the BmadbendlCable Modem/I-Net and EducatJonaFGovemment Access. Our next negotiation session was set for November 29th. Broadband/Cable Modem/I-Net We learned that Northland I~ not Intomstad in activatina open access fibem for broadband and I-Net services. 'they do not object to the concept of leasing their excess fibem to others who may provide broadband services. Northland anticipates that I~ will provide cable modem services. Staff will be preparing a draft change to appropriate sec6ons for discussion at the next negotiation session. Northland's Interests were anticipated in our negotiation strategy. EducattenallGovemment Acceu We feamed thet Northland prefers to provide equipment and staffing to the City in lieu of pmvicllng s sizeable caphal contribution. Northland will be preparing a draft change to this section for discussion at the next negotiation session. Staff will review )ts equipment and capital needs before the toeing. .Larr7 Dunbar From: Larry Dunbar [palight@ci.port-angeles.wa.us] Sent: Friday, November 16, 2001 8:23 AM To: Pete Grigorieff (E-mail); Mike Roberge Cc: Richard Li Subject: Updated Franchise Document ~t0m~c At=ached is a copy of the updated franchise docu~n=. The draft document includes the .track changes" feature of Word - please do not turn off thia feature. ~11 of Nor=hl&nd's 10/19/2001 changes and yes=erday's power supply language are ~ncluded. Pleaee use tht~ documen~ as you prepare a revised section on "educational and g~e~n~al accese chapels and support". Thie wt~ a[~ow bo~h part/es [o clearly aec the changes propose~, hopefully wi=hou~ dup/ica~tn~ each o=hers ~rk. ~e C~y wll/ continue Eo be ~he pri~ editor an~ keeper of the franchise .Larr~ Dunbar From: Larry Dunbar [palight@ci.port-angeles.wa.us] Sent: Wednesday, November 21, 2001 12:$9 PM To: Pete Grigofieff (E-maN) Subject: Preliminary Council Chambers Cablecast System Equipment Schedule ~ a follow up to our comveraation this ~i~, I am sharing a prelimina~ e~ipment schedule for our council cha~era. The prelimina~ schedule includes e~ip~nt to cahlecaat meetings and to e~and our pla~ack facility. We are preparing a re.est for proposal, to hire & contractor to purchase e~ipment and install the system. The list is a~Ject to change. Lar~ Frrore: Larry Dunbar To: SMCLAIN, GCUTLER, MQUINN, BUPTON, YZIOMKOW, TSMITH... . Date: 11/21/01 4:14pm Subject: Broadband/Cable Modem/i-Net Revised Draft Proposal Last week we learned that Northland is no{ interested in activating open access fibers for open access and I-Net sen, ices. Based on that, we prepared a revised draft proposal for discussion at the next negotiation session on 11/29/200t. The key changes are e basic term that )ncJudss cable modem sen, ice, open access to 12 dam fil:~ra, dark fiber to business, and 12 dark I-Net fibem. Including the above in the basic term makes sense if Northland limits Its investment to fiber only (no equipment). An extended tart11 option is avellabis for supplemental open access ~ fibers, Please let me know if you would like to schedule a msetJng to discuss the revised draft proposal. A copy of the revised draft proposal is attached wfth major change~ highlighted in yellow (only effected sections of complete franchise document ere Included), PS I expect to receive Northland's revised draft educ, ational/goverernent access proposal early next week. I ~ share it with you as soon es it's received. _Lar~ Dunbar From: Larry Dunbar [palight@ci.port-angeles.wa.us] Sent: Monday, November 26, 2001 1:52 PM To: Pete Grigorieff (E-mall) Cc: Richard LI Subject: Preliminary Council Chambers Cablecast System Equipment Schedule I am sharing a mi~or update to the preliminary equipment schedule for our council' chambers. Schedule /=ems 14, 1S and 18 have been updated. The list ks subjec= to ch&nge. Larry From: Larry Dunbar Te: .SMCLAIN, GCUTLER, MQUINN, BUPTON, YZIOMKOW, TSMITH... Date: 12J10/01 8:12am Subject: Northland Negotialfon Status Report The negotiation meeting scheduled for December 7~h was cancelled. Due to illness, Northland cancelled ~ negotiation session. Another negotiation meeting was scheduled for this Thursday, December 13st. This Is the second meeting that has been cancelled due to illness. We have not yet received Northland's Educational/Govemmental Access proposal. I will provide copies as soon It is received. art), Dunbar rom: pete@northlandh'.com ent: Thursdey, December 20, 2001 11:57 AM o: Larry Dunbar ubject: Re: Negotiation Meeting o to Mikes leave of abaents, Sr. Vice Pres/dent Jack Dyate is now part of ~r negotiation team. ~o to Jack's schedule, he has requested if we could reschedule our Jan. 002 meeting until, Tuesday Jan. 8, 2002, at ~ill this work for you? ..... Original Message ..... ~rom: "Larry Du~bar" <palight~ci.port-angeles.wa.us> "Pete Grigorieff (E-mail)" <pete~northlandtv.com> ;ent: Tuesday, December 18, 2001 8509 AM ;ubJ~ct: Negotiatto~ Meeting Did we plan to meet on Friday, January 4th fro~ 1-SPM? ! did not place it on my calendar and forgot if it was for the 3rd or 4th. Please confirm ~he meeting date/time. Any word on Mike? Do you need to put together e new negotiation team? Larry NORTHL-4ND BLE TELEVISION, INC. No. 7000 1670 0011 3388 8649 (~) ~-~35~ D,~m~r 20, 2001 Larry Dunbar, Power Resources Manager Public Works & Utilities Department City Of Port Angeles 321 East Fifth S~reet Post Office Box 1150 Port Angeles, Washington 98362-0217 Re: ~Northland Cable Television, Inc. ("Northland") - Cable Television Franchise Renewal Dear Mr. Dunbar: As you know, Northland recently was forced to delay our informal franchise renewal negotiations with the City due to the unforeseen absence of Michael Robergc. Therefore, we have had to get several other people caught up with this process and we have now put together a team that is ready to work with the City to complete the informal franchise renewal. We believe the City has proposed a very limited timeframe to conduct and conclude informal.negotiations whcre.a longer period of time would result in a fl'anch/se that could provide more benefits to all. We previously expressed our concern with the City's renewal process, and I am compelled to restate that concern here. In our experience, we have not seen a situation that binds an operator to a formal submission before conducting informal negotiations. When we marked up the City's proposed cable television franchise ordinance earlier this fall, we undemtocxl that thc mark-up would be used for discussion purposes. (Our understanding was based on earli~ communications with the City as well as general industry experience.) ' While the cover letter accompanying our October 19. 2001, submission indicated that the mark-up should satisfy the City's deadline for a formal response, we did not fully understand the City's intentions or the resulting consequences. I apologize for any difficulty this created for the City. Also, the document initially posted on the City's website as "Formal Proposal for the Cable Television Renewal," was a different document than the mark-up provided by Northland on October 19, 2001. The City's unilateral changes suggested to us that the City did not intend to consider this discussion draft a formal proposal. We again request that the City acknowledge the confusion surrounding our submission of the initial mark-up and provide us with an additional period of 120 days to submit a formal response. Granting this request is surely within the City's discretion and would promote the public interest by facilitating an orderly franchise renewal. N~RTHL4ND ~BLE TELEVISION, INC. Larry Dunbar, Power Resources Manager Public Works & Utilities DcparUnant City of Por~ Angeles Dcc~ml~r 20, 2001 Page 2 There are at least two advantages to granting Northland's request: (Il A new filing opportunity would conveniently provide both parties with additional time to conduct informal negotiations. Northland regrets the negotiating delay we have encountered, and I assure you that we have every intention of working with the City as efficiently as possible. In the meantime, we are concerned that it may be difficult to meet the existing deadline. (2) A new filing opportunity would provide Northland with the opportunity to enZure that our formal proposal reflects, to the max!mum extent legible, the needs expressed by the City in informal negotiations. We remain hopeful that our' Port Angeles franchise renewal can.be rcsoived quickly and amicably through informal negotiations. Northland does not want .to distract away from that activity, but we remain concerned that the current scenario unduly prejudices our rights and opportunities. Northland does not waive any of its rights under the Cable Communications Policy Act of 1994, 47 U.S,C. 546, as amended. We have stated that dur/ng informal renewal discussions, thc formal procedures o~the Act will continue to be held in abeyance to allow f~ the completion of informal ncgetiations. Should the informal ncgotiations fail, the formal procedures, as specified in the Act, will commence. We agree, however, that the best path at this point is to proce~ with informal negotiations with the cxpcctation that a mutua!iy beneficial result w/l] be reached that will render moot the misunderstandings affecting the "formal" option. ! arn pleased to be working with you on this franchise renewal process. In times ofihnited resources it is important we usc tbcm as time efficiently and effectively as possible to meet the needs of our community. Our goal is to work together with you to reach that end. Pete and I look forward to meeting with you in early january. R. Jack Dy~r~ Senior Vice President ce: John S. Whetz¢ll Gq S. Jones Richard I. Clark Pete Gr~gorieff Laura N. Williams ~P01 Third Avenue, Suite 3600 · Seattle, Washington 98101 · {206) 621.1351 pORTANG L :S ....... W A S H I N G T O N, U. S. A. PUBLIC WORKS & UTILITIES DEPARTMENT Friday, December 21,2001 VIA E-MAIL AND CERTIFIED MAIL ~ i::;> · (Receipt # 7000 0520 0015 2715 0672) · "'""" Mr. Pete Grigorieff . ~.;.,.:..,~:, Regional Manager '"'""'""' Northland Cable Television, Inc. ,- ~;.:.~,~'. 725 East First Street ,.;.,,'?~.-. ,~.._,. Port Angeles, WA 98362 Dear Mr. Grigodeff, ~ ...... On behalf of the City, I express our concern for Mr. Mike Roberge and ,hope that he .... ¢ ~ gets well.soon. We are also concerned that we are running out of time to informally .... · .,negotiate a franchise before the City must act on your formal renewal proposal. · "';'~' · ' Although the City provided its draft informal proposal to you on August 21, 2001, we :?~:.~..have made little progress on informal negotiation. Our informal negotiation has .... ' 'consisted of a meeting that was held on November 15, 2001. As a follow-up to that ...~ i~ meeting we understood that Northland was going to share a revised · ,..~..~: ·educational/governmental access informal proposal. As a follow-up to the same .,~.*,..meeting, the City provided a revised Broadband/Cable Modem/I-Net informal · .',;. proposal to you on November 21, 2001. We planned to meet and negotiate these . ..?.~..~;~.;. key franchise sections on November 29, 2001. However, three meetings scheduled- ...... · ...... since November 15, 2001 have b.een cancelled by Northland.. · * ...... Unfortunately, our time frame for procedural compliance as outlined in the Cable Act .... "*"~%. 47 USC §546 (a)-(f) can not be delayed as a result of these cancellations. If we are ~.- unable to conclude our informal negotiations by the first week of February, I will have -~.:*;..... no choice but to recommend that the City Council make a "preliminary assessment" . ?.~......~ on February 19, 2002 of denial for your formal renewal proposal dated October 19, :~, 2001. Likewise, if an informal franchise is not negotiated by the end of May, on June . ..'?/::.! 18, 2002 I will recommend to City Council that it "formally denies" your formal '...'.'.:..:~?: renewal p~oposal. The extension for informal negotiation will provide ample :';,~'~; opportunity for both parties to refine various terms and conditions. -.. Sincerely, Larry Dunbar Power Resources Manager .'~ 3 _!_ S;I' F'/FTH STREET · P. O. ~OX ! I~O · PORT ANGEL.E~;WA 98362-O217 · "i'~"~i~' PHONE: 360-417-4805 · FAX: 360-4t'7-4542 i TTY: 360-417-4645 ~.-~ E-MAIL: P U B WOR KS@C;I. PO RT-AN~E L ES,WA.LI $ ' pORTd NGELES ...... 62 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: January 7, 2002 TO= UTILITY .~DVI$ORY COMMITTIng' FROM: Larry Dunbar, Power Resources Manager St~lorCr: Cable Television Franchise Formal Renewal ProPOsal Denial ~Sa mmary: The next step of thc cable television franchise formal renewal process is to either " accept or render a preliminary decision to deny the CaNe Operator's formal renewal proposal. This step is required unless an informal proposal is negotiated bythe first week of February, 2002. An informal negotiation is being held concurrent with the formal renewal process. Recommendation.'. That City Council renders a preliminary decision to deny the Cable Operator's formal renewal proposal and authorize informal negotiation to continue brough May of 2002. . . ~2g~[/A~[l.~ On December 15, 1987, City Council approved a fifteen-year non- exclusive cab]e tdeV~sJon f]-ancbJse that will expire on September 30, 2003. On October 3, 2000, Northland Cable Television, Inc. (Cable Operator) requested its franchise be renewed fit accordance with the formal procedures of the Cable Communications Policy Act (Aet)~ On October 17, 2000, the City Council appwved a professional services agreement with Metropolitan Communications Consultants (MCC) that included a cable television and telecommunications public proceeding and development ora draft cable television franchise for renewal negotiatiohs. On May 22, 2001, the City Council approved professional services agreements with MCC and the law fu'm ofWinstead, Sechrest & Minick [%VSM), for technical and legal services during the cable television franchise renewal negotiations, on August 31, 2001, MCC completed the Cable Television and Telecommunications Needs and Interests Report that was provided to the Cable Operator. On September 18, 2001, Council accepted the Cable Television and TelecommuniCations Needs and Interests Report and authorized staff to request a formal proposal from the Cable Operator to reasonably meet future cable-related needs and interests as identified Jn the report. On October 19, 2001, the Cable Operator delivered its formal renewal proposal to the City, The City provided public notice that it received the Cable Operator's formal renewal proposal on November 11, 2001. January 7, 2002 Utility Advisory Committee Memo RE: Cable Television Franchise Renewal Formal Proposal D~nial Page 2 In accordance with the Act the City must either accept or provide a preliminary decision to deny the Cable Operator's formal renewal proposal by February 19, 2002. If the City were to render a preliminary or formal decision to deny the formal renewal proposal, upon Cable Operator request or City initiative, the City Council would conduct an administrative proceeding. An administrative proceeding is an opportunity for the Cable Operator to present evidence on whether its formal renewal proposal is reasonable to meet the future cable-related community needs and interests. At the completion of the administrative proceeding, the City would either $nmt or affirm denial of the formal renewal proposal. Any demial wo~id be based on one or more of the following adverse findings: 1. The Cable Operator's service quality has not been reasonable in light of community needs. An adverse finding was made in the Cable Television and Telecommunications Needs and Interests Report. 2. The Cable Operator has the financial, legal and technical ability to provide the services, facilities, and equipment as set forth in the Cable operator's proposal. This asses~raent not been made on the formal proposal.. 3. The Cable Operator's formal renewal proposal does not reasonably meet the future cable- related community needs and interests, taking into account the cost of meeting such needs and interests. A preliminary assessment of this advise finding ia summarized in the following paragraph~. A preliminary assessment of the Cable Operator's formal renewal proposal includes a total of twenty-one adverse findings. A summary of the preliminary assessment is included Attachment "A". MCC and WSM recommend that the City should issue a preliminary decision to deny the Cable Operator's formal proposal. Their recommendations are included Attachment "B". Based on the preliminary assessment and recommendations from the City's technical and legal consultants, Staffrecommends that a preliminary decision be made to dcm7 the Cable Operator's formal renewal proposal. This step is required unless an informal propo~l is negotiated by the first week of February 2002. The formal renewal procedures will terminated after an informal proposal is negotiated and the renewal ia granted. A copy of thc Cable operator's formal renewal proposal is available upon request or from the City's website. Ifa franchise is not negotiated under the informal method by the end of May 2002, Staffwill return to the UAC on June 10, 2002 asking for a recommendation to the City Council that it "formally deny" the Cable operator's formal renewal proposal. Extension of the informal negotiation timeline should provide ample opportunity for both parties to refine various terrm and conditions. A summary of the formal and informal franchise renewal timelines and milestones is included as Attachment "C". A copy of this memorandum was provided to the Port Angeles Works! Committee and the Government and Educational Access Advisory Committee Preliminary assessment of formal renewal proposal adverse findings Formal Preliminary assessment of formal proposal Cable-related community needs and interests renewal propasnl adverse findings ~scriber The minimum analog channel capacity for a 1. Channel capacity of only 550 eds and contemporary cable system including at least 70 MHz. erests activated channels should be 750 MHz. The City 2. Omission ofrequiremant for should establish minimum system performance broad programming categories. standards and minimum programming requirements 3. Omission of requirements for for local, regional and national news and sports, local and educational programming. ~nchise To ensure compliance with the terms of the franchise," 4. Omission ofles~ violation ol,vions shoo of franchise termination,'liquidated damages sanctions in Iieu Of franchise . should bc paid to the City for Franch/se violations, termination. Payment of liquidated damages should be secured by a 5. Omission of letter of credit or letter of credit, other financial means to secure para'neat ofllquldated damages. ,,tm A basic term of four-years is recommended if there is 6. A fifteen-year basic t~,.m was no new capita! investment by the Cable Operator, proposed without a cable plant specifically including an upgrade to 750 MHz, a upgrade. broadband capable open access network, cable modcn ?. A six-year extension was sea'vice, and a dark fiber institutional network. A six- proposed (total t,~m of 21 years) year extension is recommended subject to completion for a capital upgrade within and City acceptance of the upgrade within nine twenty-four months after the nonths after the effective date o£the initial four-year effective date of the renewed term of thc'renewed franchise. The maximum term franchise including: recommended is fifteen years. * Broadband capable open access network · Cable modem service · Dark fiber institutional network · Channel cspanity ofonly 550 MHz 8. Authorized uses of the I-Net ate not explicit and subject to separate agreement to be negotiated, 9. No l-Net warraniyprovided ~cces$ Thc franchise should require up to three access 10. Provides a maximum of two Channels channels, with the capability of up to five access access channels. channels, based on needs and interests over the l 1. Docs not provide City capital Government franchise term. The Cable Operator should provide funds to suppoxi an adequate & the City capital funds and other resources for an access channel program. Educational ~ adequate educational and govcrnment access channel 12. Does not provide other resources system. (staffing, equipmant, technical services) to support an' adequate access channel program. 13. Requires City to establish an access provider at its expense. Attachment "A" Continuation Preliminary assessment of formal renewal proposal adverse findings Formal Preliminary assessment of formal proposal Cable-related communiW needs and interests renewal proposal adverse findings ,anchise Fee Continuation of a 5% franchise fee as permitted by 14. Revision to gross revenue law is recommended. The franchise fee will be definition that will reduce City allowed to be a full credit against any public utility franchise fee revenues tax. significantly below that allowe~ by law. rtili{y Tax The City does not currently collect a public utility tax 15, Omission of utility taxes. Only ; on cable television services. A 6.0% public utility tax the franchise fen is proposed and (effective rate of utility tax is 1.0%) is recommended would be in.lieu of other City if there is no new capital investment in the cable plant compensation. upgrade by the Cable Operator. :ompliance The franchise should require the Cable Operator to 16. Reduction of City police power~ dth City comply with all other City ordinances, relaled to regulation of ~olice Power construction work in thc right-of- ~rdinance~ way. 17. Reduction of City standard insurance requirements. ~ubscriber The proposed subscriber service standards are based ~ 8. Omission of customer service ~ervice on Federal Communications Commission standards standards for providing'written ~tandards and and authority granted to the City to adopt additional information to subscn'bera. (City Reporting standards. The recommended standards address has unilateral authority to adopt Requirements ' nstallatioras, service intermptigns and other service reasonable standard$). problems, appointments, notices and subscriber 19. Periodic surveys would be communications, disconnection of service, completed at City expen,~. deposits/refunds/credits, rates/feerdcharges, and 20. Omission of public relations privacy protections. Subscribers should be program. periodically surveyed on programming needs and 21. Omission of requirements for interests. The Cable Operator should establish a report content~ and reporting :~ublic relations program and increase the frequency of frequency. CiVd reporting. A~tachment "B" M£TROPOLITAN - COMMUNICATIONS CONSULTANTS $ea~e: .~47 McKb~y ~ N. ~, W~ ~10~$710 December 20, ~001 Mr. Larr~ Dunbar Power Resources Manager The City of Port Angeles 3:Zl East Fifth Street Port Angeles, WA 98362-0217 Re: Northland 10/19/0'1 Formal Proposal - Recommendation to De~y In response to ),our re~ue~, we are submitting our recommendation regarding City ac~on on Northland Cable Television's formal proposal for i~ franchise renewal, dated October 19, 2001. The Cable Act provides four lectors for consideration b)' the Cit~ in cormectlon with evaluation of a~ Operator's proposal. These are listed on peges I and 2 Of MCC's Needs and Interest~ Report dated August $1,2001 excerpted below together with MCC's evaluation: (A) The cable operator bas substan~all), complied.with the material terms of the existing franchise ond with applicable Jaw; ~rauorablejqnding- substantial compliance, see summar~ and Exhibit I in MCC Report (B) the quality of the operator's service, including Signal quality, response to consumer complaints, and bi/ling practices, but without regard to the rrdn o~ quality o£ cable services or other services provided over the system, has been reasonable in light of community needs; (adqerOttting - ~ summary, ~d~ib# 3, and Appot#ix F.2 4 in MCC Re~ort 8/3 (C) the operator ha~ the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in the operator's proposal; and (Ci~ determlnaKan} (D) the operator's proposal is reasonable to meet the fum~ cable-related community needs and interest, taking into account the cost of meeting such needs and intereela. (a, tOvt~e jq#din$ - b~sed on ?rapas~l s~tnitled ] O/7 9/OI. $Nt)fc details m~, sum/na~zed in t~rofec! Manager's.~#mary- ",qttachn~t ~ ") Based on an adverse finding in Factor~ 15 and D of the four factors prescribed by the Cable Act, we recommend a pr~llminsty decision to deny the proposal as stlbl~itted. vexy truly you~, METROPOLIS*AN COMMUNICATIONS CONSUL]ANTS, tLC Richard C. T. Li, P.E. Ailachment "B' . .... D~c~rab~r 26, 2001 db'ecl dial: 512.370.2698' cwcst~fimtesd.com City ofPo~ ~gci~ A~.: ~. ~ D~b~ 321 Eat 5~ Argue P. O. Box 1150 Po~ ~gel~, WA 98362-0217 Re: Ptel~ Assessm~t of ~e F~c~e of No~l~d Cable Tele~aio~ ~. (~o~d~) wi~ ~e Ci~ ofPo~ ~gel~ Should Not be R~ De~ ~ ~ ] fo~d you ~s lea~ p~ yo~ tequ~t. ~ aecord~ce ~i~ 47 for De~", ~e CiW may "issue.a p~ellmin~ ~,essment ~a~ ~e ~o~l~d] ~e~ae shoed not b~ ren~". ~e "focal p~os~" w~ submia~ by No~l~d on Octo~ ~e~onse ~o ~e fo~ r~u~ of~e Ci~. ~ is su~cient info~ation to.s~ ~ ~v~ find~g ofon~ ot mo~ of ~e facto~ outing' ~ Sub~fion (d) 47 USC ~ 546 to pm~de ~ple ~ for de~ Of ~e te~. ~ong ~, but not limit6d'to, '~m '~e cable op~' pro~s~ of Octob~ 19, 2~1 ~d not ~onably me~ ~e ~mre cable-~elat~ ~d ~t~e~ ~ dete~ by ~e Ci~, ~g into accost ~e eos~ of infest. ~a i~ consistent ~ c~e law on ~ p~cul~ issue in ~e ~ ln~ v. Ci~ of Sturges, Kentuc~, 107 F.3~, 434 (Co~ of Appeals 6m C~m~ 1~. It ~hould be not~ ~al ~ ia ~u~ a "pt~l~min~ ~aessm~t~ of a d~. It dom n~ conclude ~e t~ewg process not do~ it p~elude continued "info, al" ~- ~9 CiW may i~ate ot ~e cabl~ op~ator may ~equest ~ a~s~five the pre]~in~ ~s~sm~ ~o d~y ~e ~ew~..~at he~ng must be ~nclud~ ~fo~ c~ ~ssut a ~ ~ deci~on d~ng ~e cable ope~tor's propos~ f~ a d~isioa. ~ is no ~i~c stamto~ ~e ~e ~d~ f~al law for ei~ he~g or ~e fo~g de~al, o~ ~ it should be aet~ upon p~ot ~c~se ~pi~, ~d ~ aH inst~c~ ~e CiW should c~e~lly pro, de ~e ad~uate no,ce, ~ ~ oppo~iW to ~ b~ on ~e issue. Sinc~ly, . ~ esl CAW:~ Sep-03 Franchise E. xp/res 9/3012D03 Franchise Expires 9/30/2003 Aug-OS JuFO$ Jun-03 May-03 Mar.03 .. '~ ' ,:::: ', Sep-02 Aug-02 ' ::' May-02 ..~ Informal negotiation conclusion desired :~ i LI~_. ' by 5/31/02 / .o2 ! j~n.~! .i' City Preliminary decis/on to deny formal Proposal 2/1 g/02 Nov-01". Public notice of formal proposal provided 11/I 1/01 Infom~l negotiation session 11/15/01 OCt.01 Fontal p~l received Sep-01 City requests ~omml proposal 9/21/01 Aug-01 Future cable-related community needs er~d Interests 8/31/0'1 City defivem informal proposal to Cable OI)emtor 8/21/( Ju~-01 Jun.~l Mar-01 Feb-01 City commenced public proceeding 2/24/01 Jam01 Dec-O0 ' Nov-O0 Oct-O0 Cable Operator formal renewal request 10/3/00 63 _Larr~ Dunbar From: Larry Dunbar [palight@ci.port-angeles,wa.us] Sent: Tuesday, January 08, 2002 3:40 PM To: Pete Grigorieff (E-mail) Cc: Scott McLain (E-mail); R/chard LJ Subject: Current Council Chambers Cablecast Equipment List Attached is my most current list of equipment for the project. I thought that it ~ay help you with your revised proposal. Larry Larr~ Dunbar , From: Larry Dunbar [palight@ci.port-angeles.wa.us] Sent: Wednesday, January 09, 2002 10:44 AM To: Mike Sturgeon Subject: Current I-Net list Mike, At your request, attached is the most current 1/et of I-Met sites. Please note the ,strikeout" sites. Northland struck these sites in their formal 9roposal to the City. The City is StAll interested in these sites under the informal proposal process. Larry 65 I"1.~ C~RTIFIED M,4]£ 1201 Third Avenue, Suite J~u~ 15, 2002 ~ Dunb~, Power Resoumes M~ag~ Public Wo~s & Utilities ~pa~ent CiW of Pon Angeles Po~ Offi~ Box 1150 Pon Angeled, W~hin~on 98362-0217 ~a~ for geeing toge~er wi~ Pete and I I~t w~k; we appreciated ~e op~ni~ to m~ ~ you and'S~. As we discussed, No.bland wan~ to work with the CiW to provide for ~e cable television n~ds of communiW, however they must have mural benefit ~d provide advan~ges for lhe Ci~, ~e communi~. I fee} ~e app~cb of negotiatlng ~e ~chi~ a few sections at a 6me will help us m~e inc~men~ .p~ss as we work ~rough ~is info.al press, In ~at ~g~d Pete ~d I ~ wo~ing ~ m~ku~'of several sections and pl~ to have one~ mo~ or.em in your hands prior to our your ~qu~ ~ ~ u~/ng ~e original d~ument' for ~ m~kup so you c~ main~in ~, it's unfo~nate ~m ~e~ h~ ~en con.sion owr ~e issue of focal vets info~ pwceedings. It has mk~ time and aaention a~y ~m ~e prior/W of finalizing an a~e~ ~atm~ ~e ne~s of~e ~i~, ~e communi~, and No~l~d. I ass~ you ~at No~l~d in no Ci~ to compromi~ i~ righ~ with ~s~ct to ~e focal pr~eas should our info.al di~cusslons im~sse.' We would be willing to put ~uch an understanding in ~iting to clari~ Ci~.~ us a ~onable peri~ of time after May 30 in which to submit a focal p~. · &sc~ ~s on &e 29 Pete ~d I ~ I~Jng f~ard to our ne~ meeting. Ga~ S. Jo~s -. Peru GHgo~ff . DN~3.d~ Larr~ Dunbar From: Larry Dunbar [palight@ci.port-angeles.wa.us] Sent: Tuesday, January 15. 2002 2:53 PM To: Mike Sturgeon Cc: Pete Grigodeff (E-mail} Subject: Northland I-Net Route Map Approval M~ke, As a follow up to my phone message to you today, I want to summarize my response to your request to "approve" the fiber optic route map you shared with me on 1/11/2002. Generally speaking, the route looks similar to what you shared with the City last July and is similar to the City's draft plan. Based on your map and our discussion on the 11th I understand that all of Northland's currently existing fiber in PA would be over lashed to include 24 incremental cost City I-Net fibers (about 50K LF), that your recent upgrade would be over lashed to include 24 incremental cost City I-Net fibers (about 15K LF), that your future upgrade would include 24 incremental cost I-Net fibers for the City (about 20K LF), and your proposed section to con[01ete a downtown I-Net ring would be full cost to the City (about 8K LF). Altogether, the complete upgrade plan/I-Net backbone appears to be about 18 miles long. ~ased on the City's revised informal franchise proposal to Northland (this is still in draft) the City would consider approval of your I-Net proposal as follows= The City would provide Northland detailed site plans and City network equipment location maps for the I-Net sites within thirty (30) days from the Effective Date of the Franchise. The city has already completed some of this work (fiber optic pilot project sites). Northland would provide the City with network outside plant plans and specifications, and a sufficiently documented I-Net incremental cost proposal, arranged in accordance with the individual initial and future I-Net sites, within one hundred and eighty (180} days after the Effective Date of this Franchise (the timeline may need to be reduced based on your upgrade schedule}. Northland's plane and specifications would include fiber route plans, fiber count diagrams, fiber specifications, loss budget calculationS, termination and enclosure details, and plans and specifications, all in sufficient aetail to permit identification, correlation, verification and understanding of the components of Northland's incremental cost proposal. I recognize that your plans are to move forward w/th the upgrade. In my opinion, it makes sense for Northland to start working on its I-Net proposal to the City (even though we have not reached an agreement to renew your franchise) so that the I-Net fiber can be included in your upgrade. We will need to complete our informal franchise negotiation before the City can officially .approve" an I-Net proposal. Thank you for sharing the route map, I look forward to our continuing discussionsl Larry 67 L~arry Dunbar From: Mike Sturgeon [mikesturgeon@northlandtv.com] Sent: Wednesday, January 16, 2002 11:00 AM To: Larry Dunbar Lan'y: I received your fo/Iow-up e-maiL I will forward it to Mr. Dyste. At this point I have the same DeLorme map with all of the sites marked for initial I-net service and our current and near future nodes indicated, Existing fiber counts wi/I be next, I hope by mid week. Mike TANGELES ............... W A $ H ~ N ~ T O N, U. $. A. pUB~LIC WORKS & UTILITIES DEPARTMENT VIA E-MAIL AND CERTIFIED MAIL DP. AFT (Receipt# 7000 0520 0015 2715 0689) Mr. R. Jack Dyste Senior Vice President Northland Cable Television, Inc- 1201 Third Avenue, Suite 3.600 Seattle, WA 98101 Dear Mr.' Dyste, Thank you for your letters of December 20, 2001 and January 15, 2002. I am attaching a letter dateci December 2l, 2001 to Mr. Pete. Grigorieff for more information. I empathize with your concerns about the renewal process and for just'having entered into a complicated process that has been underway for over a year, I would like to share the following information with you to demonstrate that both_formal and informal processes have proceeded concurrently. The main formal process milestones include: · on October 3, 2000, Northland requested the City commence with formal renewal proceedings in accordance with the Cable Communications Act while holding the formal procedures in abeyance; · on October. 17, 2000 in a public setting, the City Council determined formal procedures would commence; · on February 24, 2001, the City commenced a formal' public p.roceedlng including a survey which was reviewed and approved by Northland; · on August 24, 2001, at Northland's request, the City shared a draft copy of the formal future cable-related community needs and interests report; · on' September 18, 2001, the City Council accepted the formal future cable- reiated community neeos and interests report and authorized City Staff,to request a formal proposal from ~Northland; · on September 21, 2001, the City requested and set a date of October 22, 2001 as the deadline for a formal proposal from Northland; On that same date the City expressed its cont nbing interests' in informal negotiation, which may be held concurrent with the formal renewal procedures. · on October t9, 2001, the City received Northland's formal proposal; and · on November 11, 2001 the City provided public notice of Northland's formal proposal. 321 EAST FIFTH STREET ® P. O. SOX ! 150 ® PORT ANGELES, WA 98362-O~.1'7 PHONE: 360-417-4805 ® FAX: 360-417-xt542 ® TTY: 360-417'4645 F-MAIL: PUBWO R K~-'~'G'G'G'G'G'G'G'G'o'~C I ' P O R T- A N G E L E S ' wA ' U S Mr. R. Jack Dyste Northland Cable Television, Inc. DRAFT Page 2 Under the informal method, · the City Council authorized the development of an informal proposal on October 17, 2000. · On July 26, 2001, the City and Northland began informal discussions. · On August 21, 2001, the City shared an informal proposal with Northland and a tentative negotiation schedule was established with a goal to complete the informal negotiation by September 5, 2001. Northland did not respond to the City's informal proposal and all informal negotiation meetings were cancelled by Northland during this time period. · Beginning September 21, 2001, the City and Northland sought to reach an informal agreement by the end of January 2002. · During that time period a meeting was held on November 15, 2001 and all subsequent informal negotiation meetings were cancelled by Northland, with the exception of our January 8, 2002 meeting. Northland's request that the formal procedures of the. Act be held in abeyance during informal negotiation is not in the City's best interest. If the City failed to comply with the formal procedures (for example, if the public proceedingdid not commence by Apdl 1, 2001 or a preliminary decision on the formal proposal is not made by February 19, 2002) it would effectively mean that the City gives up its rights under the formal process. The City's failure to comply with the Act would also reduce, if not eliminate, the City's negotiation ability under the informal method. However, the City is definitely willing to continue the informal process after the February 19, 2002 Council meeting. I would like to emphasize that the extension for informal negotiations through the end of May 2002 should provide us ample opportunity to reach an agreement. The City's negotiation team is available on a weekly basis to meet and/or review drafts. As the franchise authority, the City has the flexibility to allow more time for informal negotiation and postpone a decision on your formal proposal if good progress is made on the informal negotiation but it still remains incomplete at the end of May. I look forward to our next meeting on January Sincerely, Larry Dunbar Power Resources Manager