Resolution No. 84-18B CITY OF TIGARD, OREGON
RESOLUTION NO. 84 - _.Lgg
A RESOLUTION OF THE TIGARD CITY COUNCIL STATING ITS OPPOSITION TO HR 4103
DEALING WITH CABLE POLICIES.
WHEREAS, the Tigard City Council, having reviewed the provisions of HR 4103,
has determined that this is an unsound 'bill strongly favoring the interests of
cable operators and against the interests of cities and their traditional
franchising powers; and,
WHEREAS, the Tigard City Council has determined that it is necessary to
communicate to the Oregon congressional delegation and other interested
members of Congress that adoption of the National League of Cities Cable
Policies is necessary to protect the interests of consumers in both existing
and new franchise agreements; and,
WHEREAS, the major objections to HR 4103 are as follows:
Rate Regulation. HR 4103's restrictions on municipal authority to
regulate subscriber rates will preclude meaningful rate regulation in most
communities for the following reasons: (1) all rate regulation will
eventually terminate in any community served by four or more over-the-air
television stations; (2) HR 4103's definition of basic service is very limited
and in conflict with the definition of basic service included in many existing
franchises; (3) only limited grandfathering of rate regulation under existing
franchises is provided and applies only for the longer of five years or
one-half the remaining life of the franchise; and (4) even if basic service
rates are subject to regulation, the cable operator is entitled to annual
automatic rate increases based on the increase in the consumer price index.
Leased Access. HR 4103 does not authorize cities to establish leased
access requirements in the franchise for the provision of non-video services
(e.g., security services) by competitive service providers, authority which is
necessary to ensure that the cable operator does not abuse its monopoly
position. Moreover, HR 4103 establishes minimal federal leased access
requirements with inadequate enforcement provisions for the provision of video
programming and preempts state and local jurisdiction in this area. Because
these standards apply only to systems with 36 or more channels most
communities would be denied the benefits of even these inadequate leased
access provisions.
Abrogation of Contracts. HR 4103 would authorize the abrogation of
contractual provisions requiring the provision of particular services and
facilities by allowing the cable operator to remove facilities and services
required by the franchise whenever there has been a significant change in
circumstances.
Franchise Renewal. HR 4103 establishes franchise renewal standards and
procedures which are heavily weighted in the cable operator's favor and strip
cities of their authority to obtain reasonable upgrades of cable systems or
deny renewal to an operator who has provided poor service. The inequitable
RESOLUTION NO. 84-- S
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nature of the renewal provisions is due to the following factors: (1) a
strong presumption of renewal is established; (2) decision-making authority is
effectively removed from the city by requiring de novo court review unless the
actual decision is made by an independent hearing examiner or administrative
law judge; and (3) a minimum buy out price which is unaffordable is
established, making transfer of the franchise to a new company very
difficult. Additionally, the renewal provisions are likely to increase the
vulnerability of cities to anti-trust challenge because they require
anti-competitive conduct, but do not include a provision immunizing cities
from anti-trust challenge.
Grandfathering. HR 4103 does not provide any grandfathering protection
for franchise processes which were begun after October 31, 1982, but not
actually completed until after the bill's date of enactment. Moreover, HR
4103 provides only minimal grandfathering for existing franchises as their
rate regulation provisions are not fully grandfathered, the removal of
facilities and services required by the franchise is authorized whenever there
has been a significant change in circumstances, and their leased access, buy
out, and renewal provisions are invalidated.
NOW, THEREFORE,
BE IT RESOLVED by the Tigard City Council that:
Section 1: The Mayor is instructed to transmit copies of this resolution to
the Oregon Legislature delegation and other interested members of
Congress.
Section 2: That a copy of the National League of Cities Resolution 26 be
attached and incorporated into this resolution as a positive
statement of the City of Tigard on national legislation issues.
Section 3: This resolution shall become effective immediately upon passage.
PASSED: This _ �—f1� day of mak-Gh 1984.
Mayor - City of Tigard
ATTEST:
W1.
v Deputy City Recorder - City of Tigard
(JM:pm/1286A)
RESOLUTION NO. 84-- ice
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PROPOSED RESOLUTION - R26
THE PROTECTION OF LOCAL, AUTHORITY AND
CONSUMER.INTERESTS IN CABLE LEGISLATION
'11HEREAS, provision of cable television service has proven to be a valuable
service to hundreds of communities across the country and holds
great promise to all cities in the United States; and
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WHEREAS, local governments have had the responsibility for franchising cable
television systems in their cities and for overseeing the implemen-
tation of those franchises once awarded; and
WHEREAS, the presence of a.strong local governmental role in the overseeing
of franchise agreements has worked to ensure that contractual
obligations are carried our- and the public interest served; and
WH-REAS, since 1981, the National Municipal Policy of the League has called for
the pursuit of federal cable television legislation which protects
local regulatory authority; and
WI—MREAS, the National League of Cities has provided valuable leadership in
developing such legislation; and
WHEREAS, the 'U.S. House of Representatives has been deliberating on federal
cable television legislation; and
hdEREAS, the National League of Cities recognizes that since the U.S. Senate
adopted S_ 66, circumstances have changed due in part to the
complexity of the legislative agenda involving telephone deregulation
as well as to rapidly developing technology in the field of tele-
communications;
NOW, THEREFORE, BE IT RESOLVED that the National League of Cities continue its
efforts to achieve cable legislation, consistent with the following goals:
a that local and state governments not be limited in
their option to negotiate the definition of basic
services and to regulate the rates charged by cable
television companies for basic service, should they
believe it to be in the public interest;
a that at the time of franchise renewal, 'cities be able
to obtain reasonable upgrades of system hardware to
"state-of-the-art" standards; be able to refuse
renewal to an operator which has given poor serv_ce
during the life of the franchis^; be able to negotiate
the purchase price of a cable franchise when a
municipality buys back a cable system or the system
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is trans£erred _to a third party through a forced
sale; and that any court review will not be de novo_
and court review of renewal or non-renewal decisions
be the same as that accorded other legislative decisions;
• that all existing franchises and their terms and
conditions and all franchise processes in which
Request for Proposals has been issued be grand- _
fathered; '
• that the legislation protect cities from antitrust
liability for compliance with federal law;
• that any limitation on franchise fees not apply to fees,
charges and taxes charged to or through a cable operator
as part of a larger class, for example, utility user
taxes;
• that federal cable legislation not restrict the ability
of cities to require public, educational, governmental
and leased access to cable television;
• that cable companies not be provided with the power
to abrogate contractual obligations based on a
�• unilateral assertion of a "significant change in
circumstances"; and
• that local government not be restricted from municipal
ownership and operation,
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Approved by the Membership of the National League of Cities
• annual Business Meeting • Tovember 30, 1983 m New Orleans