4.3 SR 03-06-2023Request for Action
To
Item Number
Mayor and City Council
4.3
Agenda Section
Meeting Date
Prepared by
Consent Agenda
March 6, 2023
Tina Allard, City Clerk
Item Description
Reviewed by
Cable Franchise Agreement: Tekstar Communications
Cal Portner, City Administrator
Inc.
Reviewed by
Bob Vose, Sherburne -Wright Cable Commission
Attorney
Action Requested
1. Adopt, by motion, an ordinance granting a franchise to Tekstar Communications, Inc., to construct, operate,
and maintain a cable system and provide cable service.
2. Adopt, by motion, a resolution for summary publication of the franchise ordinance.
Background/Discussion
Tekstar/Arvig, expressed their desire to enter into a franchise agreement with the city for TV service. Once we
received a franchise application from Tekstar the city was statutorily required to hold a public hearing regarding our
notice of intent to consider the issuance of a franchise. This hearing was held August 1, 2022.
Cable Commission Attorney Bob Vose has been working with Tekstar, on a new franchise agreement. The
agreement is like our current agreement with Charter/Spectrum. It will be in effect for 15 years from the date
of acceptance.
Financial Impact
The franchise fee is 5% of video -related gross revenues and are used to pay for such items as attorney fees,
equipment, channel needs, and certain communications related items. The PEG fee is $0.85 per subscription/per
month and is required to be utilized toward channel programming.
Mission/Policy/Goal
City Mission Statement
Attachments
■ August 1, 2022, Staff Report
■ August 1, 2022, Minutes
■ Franchise Ordinance
■ Summary Publication Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires pi ospei ly.
M
TUREJ
Updated.- Januay 2023
Request for Action
To
Item Number
Mayor and City Council
7.1
Agenda Section
Meeting Date
Prepared by
Public Hearings
August 1, 2022
Tina Allard, City Clerk
Item Description
Reviewed by
Consider Issuance of Competitive Cable
Cal Portner, City Administrator
Reviewed by
Franchise by Tekstar Communications, Inc.
(Arvig)
Action Requested
The public hearing is a statutory requirement, and the mayor is asked to open and close the hearing. No action is
needed at this time. The attorney will continue to process the application and provide a report with
recommendations later.
Background
City Attorney Jared Shepherd will attend via Zoom to present this item. Cable television is regulated by federal
and state law. Companies wanting to provide cable television service are required by the Federal Cable Act to
obtain a cable franchise from the city.
Level Playing Field Statute
Per state law, when there is an existing cable company, a competitive franchise must not be more favorable or less
burdensome than those in the existing franchise pertaining to:
1. The area served
2. Public, educational, or governmental access requirements
3. Franchise fees
Charter is our existing franchise, and their agreement requires them to provide cable everywhere in the city where
there are nine homes per'/4 mile of cable. And Charter must expand anywhere else in the city if customers will pay
a portion of the extension cost.
It is understandable and would be unreasonable for a new company to immediately be able to fully build out their
system to be equal to an existing cable company but benchmarks requiring Tekstar to increase its build -out after a
reasonable time should be incorporated into the franchise agreement.
Currently the cable commission attorney is working on making sure the franchise agreement will meet law
requirements.
Financial Impact
We collect, from Spectrum/Charter a Franchise Fee, which is 5% of video -related gross revenues and are used to
pay attorney fees, equipment and channel needs, and certain communications related items. The PEG Fee is $0.85
per subscriber/per month and is required to be utilized toward channel programming.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
PIIEIEU IY
ATUR
Updated. August 2020
Mission/Policy/Goal
Elk River Mission
Attachments
■ Basic Cable Information
■ Tekstar Application
N:\Public Bodies\Agenda Packets\08-01-2022\Cal Reviewed\x7.1 sr Cable.docx
Basic Cable Information
Cable television is regulated through federal and state law, along with a local franchise agreement
through the City of Elk River. Federal law also requires franchise agreements be non-exclusive
which means no city may grant an exclusive franchise to any one company. A franchise agreement
allows a cable company to operate cable television in the city and run-on fiber line in city owned
right-of-way. The city collects fees as compensation for the cable company's use of operating their
systems in our right-of-way.
For many years most cities have not seen more than one provider mainly due to the expense to
construct in throughout a city. With technology changes more telephone companies,
particularly in rural areas, are adding video to their service packages.
Sherburne Wright Cable Commission
Elk River is part of the Sherburne Wright Cable Commission, a joint powers organization that
oversees the operation of the cities' cable franchise. Ten cities are part of the commission. The
commission meets as needed, and acts on behalf of the member cities to enforce and administer
their franchises and monitor the overall performance of the cable franchisee, which can include
handling customer service issues, the company's use of the public right-of-way, and equipment and
channel issues.
Elk River has a 15-year franchise agreement with Charter Communications (Spectrum). Via the
franchise agreement, the city receives certain benefits to transparently communicate with the
community, and includes:
■ Channels to use for programming.
■ Dedicated fiber to help connect government facilities to video and data services.
■ PEG (Public, Educational, and Government) and franchise fees.
■ Complimentary basic cable service to certain public safety facilities.
■ Allowing residents to receive cable TV and other technology service from Charter.
The franchise pertains only to the cable television services. Per federal law, the city does not have
any role in the regulation of the cable company's internet or telephone services. Internet concerns
are addressed by Federal Communications Commission (FCC) and phone services to the Minnesota
Public Utilities Commission (PUC).
The federal government has substantially deregulated the cable industry with the intent of
encouraging competition in the cable, telephone, and internet arenas and is continuing to change as
technology changes. As a result, the city's franchising authority is limited in what it can review. The
city cannot regulate cable pricing, programming, or equipment to be used by the cable operator.
Complaints received by the city consist of fiber lines run over property, typically during
winter/spring as the snow melts. The local cable office is contracted to remedy the issues. Common
complaints seen online are typically about internet speeds, which the city has no authority to
regulate.
• 150 Second Street SW
a ry i g. Perham, MN 56573
218.346.5500
arvig.com
July 19, 2022
City of Elk River, Minnesota
13065 Orono Parkway NW
Elk River, MN 55330-5600
Re: Tekstar Communications, Inc. ("Tekstar"); City of Elk River, Minnesota; Cable
Franchise Application Information Request
Dear Sir/Madam:
Tekstar responds below to Elk River's franchise application information request.
Response to Cable Franchise Application
(1) Plans for channel capacity, including both the total number of channels capable of being
delivered and actually to be delivered upon system activation;
Tekstar response: Tekstar Communications, Inc. ("Tekstar" or "Arvig") will
provide video service via its fiber broadband connection to each home or business.
Due to this robust technology, there is no technical limit to the number of channels
which can be offered, only the economics of purchasing equipment to expand upon
our existing channel offering and contractual obligations from the satellite
programmers. At this time, Tekstar intends to offer 156 general entertainment,
news, sports, and premium channels within Elk River upon launch of service.
(2) A statement of the television and radio broadcast signals for which permission to carry
has been obtained or will be requested from the Federal Communications Commission;
Tekstar response: Tekstar has negotiated retransmission consent agreements for the
following broadcast stations within the Minneapolis DMA: WUCW (Sinclair
Broadcast Group), WCCO (Viacom CBS), KSTP (Hubbard Broadcasting), KMSP
(Fox Broadcasting), WFTC (Fox Broadcasting), KARE (Tegna Media), KSTC
(Hubbard Broadcasting). Tekstar will also retransmit the Twin Cities PBS (KTCA)
as a must carry station. Tekstar retransmits the primary stream of each station
listed as well as several additional multicast streams.
Tekstar does not currently retransmit any radio broadcast signals.
DOCSOPEN\SH255111802839.v 1-6/8/22
(3) In the case of a telephone provider, a copy of the MPUC certificate of authority;
Tekstar response: Please see the two attachments relating to the MPUC certificate
of authority.
(4) A description of the proposed system design and planned operations, including at least
the following items:
a. the location of the headend facilities from which programming will be received;
Tekstar response: Tekstar's master headend is located at 950 2°d St SW,
Perham, MN 56573. All satellite delivered channels are received, processed,
and distributed from this location.
b. an explanation of the ownership of the facilities comprising the video system;
Tekstar response: Tekstar owns the master headend and the closed-circuit
distribution network providing service to customers.
C. a map identifying the proposed initial service area(s) in the City;
Tekstar response: Please see attached map indicating locations of fiber cable
within the City.
d. a proposed schedule for expansion of service beyond the initial service area or
description of the proposed policy for such expansion;
Tekstar response: Tekstar will use commercially reasonable efforts to
extend the cable system within the franchise area where technically and
financially feasible.
e. the schedule for activating two-way capacity; i.e. capacity to send video signals
"up stream";
Tekstar response: Due to the content being delivered via a broadband
connection, the system is two-way natively and "up stream" transport
capabilities are present upon activation.
£ the number of channels and services to be made available for community access
broadcasting, and a proposal for providing community access programming;
Tekstar response: Tekstar will provide at least one specially designated
access channel available for use by the general public on a first -come, first -
serve, nondiscriminatory basis. The City will establish rules for the
administration of the access channel, although Tekstar generally reserves
the right to use the access channel when not in use by the general public.
g. a general description of any non -video services such as telephone service, high
speed internet or data transmission services to be provided in the City.
Tekstar response: Tekstar has the ability to provide telephone, high speed
internet, and data transmissions services to locations where Tekstar
facilities are present.
(5) A proposal for funding community access programming facilities and/or staff;
Tekstar response: Open for discussion.
(6) The terms and conditions under which services will be provided to institutions and
identification of any plans for providing free or reduced price video or data transmission
services or capacity or other "in -kind" services to governmental, educational, and other
institutional entities;
Tekstar response: Tekstar will provide basic television service, at no charge, to the
Elk River City Hall so long as the City has an active Arvig Internet connection
(which is required by all customers to receive video services).
(7) A schedule of proposed service rates and the proposed policy regarding charges for
unusual or difficult service connections;
Tekstar response: Please see the attachment outlining service rates and fees. For
unusual or difficult service connections, Tekstar will charge trip, time, and material
as needed.
(8) A schedule for constructing and activating the system including the sequence in which
video service will be activated in various parts of the City;
Tekstar response: Video service can be activated immediately in areas where fiber
distribution exists as indicated in the attached fiber network diagram. At this time,
no additional mainline construction is scheduled for 2022.
(9) A statement indicating the applicant's qualifications and experience in the video services
field, if any;
Tekstar response: Arvig got its start in 1950 as a small telephone company in
eastern Otter Tail County, and has since grown into one of the largest independent
telecommunications companies in the nation. Through the decades, we have
embraced change, taken risks, and found opportunities to grow and improve.
Today, we are a technology leader, providing business and residential solutions for
internet, television, phone, security, Hosted PBX, and fiber transport to over 60,000
residences and businesses throughout Minnesota. When we began television service
in 1987, we used analog technology, but we have embraced new technologies over
the years, transitioning to digital and now to an app-based delivery system over our
robust fiber network. We maintain a master headend in Perham, MN where all TV
channels are received and processed for transmission to the customers. The
headend is staffed by two technicians with over 60 years of combined experience in
the cable industry. We have a 24x7 helpdesk along with customer care professionals
and service technicians ready to assist new and existing customers. We are an
ESOP company with over 800 employees that take pride in providing quality
products and services, minimizing downtime, and delivering value to our customers,
no matter the type of products they receive from us.
(10) Identification of and contact information for the municipalities in which the applicant
either owns or operates a video system, directly or indirectly, or holds video franchises;
Tckstar response: Please see attached document.
(11) Plans for financing the proposed system, including significant anticipated source of
capital and significant limitations or conditions with respect to the availability of the
indicated sources of capital;
Tekstar response: Arvig will utilize cash on hand and an existing credit agreement
through CoBank ACB.
(12) A statement detailing the corporate organization of the applicant including the names of
officers and directors, and information identifying all affiliated companies or businesses;
Tekstar response: President/CEO — Allen Arvig, Vice President/COO — David
Arvig, CFO — Staci Malikowski, Director — Rick Vyskocil, Director — Marvin Ward,
Director — Carmen Arvig, Director — Ashley Arvig, Director — David Pratt.
(13) A notation and explanation of omissions or other variations with respect to the
application; and
Tekstar response: No omissions or other variations.
(14) An application fee totaling $5,000 to offset the City's costs associated with processing
applications. Any portion of the application fee which remains after payment of all the
City's costs will be refunded.
8270.
If you have any questions or require further information, please call me at (218) 346-
Sincerely,
Joel Smith
State of Minnes ,
County of difeo 1 C,,1
This do ument was signed before me on 1 Zz_
by
JOSIE M. WINKELS
NOTARY-PUBLIC—MINNESOTA
e My moron Boo JAN. 31, = 4
BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION
Beverly Jones Heydinger
David Boyd
J. Dennis O'Brien
Phyllis Reha
Betsy Wergin
Thomas G. Burns
Olsen Thielen
Consultant for Tekstar Communications, Inc.
2675 Long Lake Road
St. Paul, MN 55113
Chair
Commissioner
Commissioner
Commissioner
Commissioner
SERVICE DATE: February 19, 2013
DOCKET NO. P-5542/M-12-1304
In the Matter of a Request to Amend the Certificate of Authority of Tekstar Communications, Inc.
to Expand its Service Area
The above entitled matter has been considered by the Commission and the following disposition
made:
Granted Tekstar Communications, Inc. conditional authority to provide facilities
based services in the exchanges included in the Twin Cities Rate Center where Qwest
dba CenturyLink QC, Citizens Telecommunications of Minnesota, Inc., and Frontier
Communications of Minnesota, Inc. are currently the Incumbent Local Exchange
Carriers (ILECs); in the exchanges of Lindstrom, Scandia Marine and Taylors Falls
where Citizens Telecommunications of Minnesota, Inc. is currently the ILEC; the
exchanges of Henderson., LeCenter and Montgomery where Frontier
Communications of Minnesota, Inc. is currently the ILEC; the exchanges of
Cambridge, LeSueur, North Branch, Princeton and Stillwater where Qwest dba
CenturyLink QC is currently the ILEC; and the exchanges of Chaska, Cokato,
Hastings, Howard Lake, Norwood and Osseo where Embarq Minnesota, Inc. dba
CenturyLink is currently the ILEC conditioned upon the Company receiving
Commission approval of an updated 911 plan covering the expanded service area,
any necessary interconnection agreements and the company must file an updated
price list/tariff prior to offering service in the Proposed Service Area.
The Commission agrees with and adopts the recommendations of the Department of Commerce,
which are attached and hereby incorporated into the Order. This Order shall become effective
immediately.
BY ORDER OF THE COMMISSION
b,
Bur W. Haar
Executive Secretary
`�'+17[rpDssi
This document can be made available in alternative formats (i.e. large print or audio) by calling
651.296.0406 (voice). Persons with hearing or speech disabilities may call us through Minnesota
Relay at 1.800.627.3529 or by dialing 711.
85 7th Place East, Suite 500
1MINNESOTA St. Paul, Minnesota 55101-2198
DEPARTMENT OF www.commerce.state.mn.us
COMMERCE 651.296,4026 FAX 651.296.1959
An equal opportunity employer
December 17, 2012
Burl W. Haar
Executive Secretary
Minnesota Public Utilities Commission
121 7th Place East, Suite 350
St. Paul, Minnesota 55101-2147
RE: Comments of the Minnesota Department of Commerce
Docket No. P5542/M-12-1304
Dear Dr. Haar:
Attached are the comments of the Minnesota Department of Commerce in the following matter:
Request to amend the certificate of authority of Tekstar Communications, Inc. to expand its
service area.
The petition was filed on November 29, 2012 by:
Thomas G. Burns
Olsen Thielen
Consultant for Tekstar Communications, Inc.
2675 Long Lake Road
St. Paul, MN 55113
The Department of Commerce recommends that Tekstar Communications, Inc. be granted
conditional authority to provide facilities based services in the exchanges included in the Twin
Cities Rate Center where Qwest dba CenturyLink QC, Citizens Telecommunications of
Minnesota, Inc., and Frontier Communications of Minnesota, Inc. are currently the Incumbent
Local Exchange Carriers (ILECs); in the exchanges of Lindstrom, Scandia Marine and Taylors
Falls where Citizens Telecommunications of Minnesota, Inc. is currently the ILEC; the
exchanges of Henderson, LeCenter and Montgomery where Frontier Communications of
Minnesota, Inc. is currently the ILEC; the exchanges of Cambridge, LeSueur, North Branch,
Princeton and Stillwater where Qwest dba CenturyLink QC is currently the 1LEC; and the
exchanges of Chaska, Cokato, Hastings, Howard Lake, Norwood and Osseo where Embarq
Minnesota, Inc. dba CenturyLink is currently the ELEC. Before providing service in an exchange
requested in this petition, the Company must first receive Commission approval of an updated
911 plan covering the expanded service area, any necessary interconnection agreements and the
Burl W. Haar
December 17, 2012
Page 2
company must file an updated price list/tariff prior to offering service in the Proposed Service
Area.
Sincerely,
/s/ BONNIE J. JOHNSON
Telecommunications Analyst
BJJ/jl
Attachment
BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION
COMMENTS OF THE
MINNESOTA DEPARTMENT OF COMMERCE
DOCKET No. P5542/M-12-1304
I. BACKGROUND
A. PROCEDURAL HISTORY OF COMPANY SERVICE AREAS
On October 31, 1997, in Docket No. P5542/NA-97-1081, the Commission granted Tekstar
Communications, Inc. a certificate of authority to provide facilities based and resold local, and
long distance service in the Detroit Lakes exchange where Qwest Corporation dba CenturyLink
is currently the ILEC.
On December 8, 1998, in Docket No. P5542/1\4-98-1481, the Commission approved the request
of Tekstar Communications, Inc. to amend its certificate of authority to include the Battle Lake
and Henning exchanges, wherein Qwest Corporation dba CenturyLink is currently the ILEC.
On April 26, 1999, in Docket No. P5542/M-99-214, the Commission approved the request of
Tekstar Communications, Inc. to amend its certificate of authority to include the exchanges of
Wadena, Mahnomen, Staples, Fergus falls, Hawley, Bemidji and Cass Lake wherein Qwest
Corporation dba CenturyLink is currently the ILEC.
B. FACTUAL BACKGROUND OF CURRENT PETITION
On November 29, 2012, Tekstar Communications, Inc. filed a petition to amend its existing
certificate of authority and provide facilities based service in the exchanges in the Twin Cities
Rate Center where Qwest dba CenturyLink QC, Citizens Telecommunications of Minnesota,
Inc., and Frontier Communications of Minnesota, Inc. are currently the Incumbent Local
Exchange Carriers (ILECs); in the exchanges of Lindstrom, Scandia Marine and Taylors Falls
where Citizens Telecommunications of Minnesota, Inc. is currently the ILEC; the exchanges of
Henderson, LeCenter and Montgomery where Frontier Communications of Minnesota, Inc. is
Docket No. P5542/M-12-1304
Analyst assigned: Bonnie J. Johnson
Page 2
currently the ELEC; the exchanges of Cambridge, LeSueur, North Branch, Princeton and
Stillwater where Qwest dba CenturyLink QC is currently the ILEC; and the exchanges of
Chaska, Cokato, Hastings, Howard Lake, Norwood and Osseo where Embarq Minnesota, Inc.
dba CenturyLink is currently the ILEC. Tekstar Communications, Inc. application falls under
Minn. Rules pt. 7812.0300, subpt. 5 and Minn. Stat. §237.16, subd. 4. Along with the petition,
Tekstar Communications, Inc. included proposed service area maps.
H. STATEMENT OF ISSUES
Whether the Commission should grant an amended certificate of authority to Tekstar
Communications, Inc.
III. LEGAL REFERENCES
Under Minn. Stat. §237.16, subd. 4 and Minn. Rules part 7812.0300, subpt. 5, the Commission
must decide upon a petition for an amended certificate of authority within 20 days. Minn. Stat.
§237.16, subd. 4 mandates that local service providers obtain an amended certificate of authority
before expanding their service areas.
Minn. Rules pt. 7812.0300, subd. 5, describes the requirements and the decision criteria for
granting an amendment to a certificate of authority for a change in service area. Minn. Rules pt.
7812.0300, subd. 5 states that a petition to modify a local service provider's service area must
include a revised map and descriptive narrative delineating the petitioner's proposed service area
changes. The petition must be served on the parties identified in Minn. Rules pt. 7812.0200,
subpt. 6. An amended certificate is deemed approved within 20 days of the petition's service date
unless the petition involves an acquisition under Minn. Stat. §237.23 or an objection to the
petition is filed within 20 days of the petition's service date.
Minn. Rules pt. 7812.0550, subpt. 1 requires a competitive local exchange carrier to obtain
Commission approval of a comprehensive 911 plan before providing local service in an area.
The local exchange carrier filing the plan must serve the plan on the Department of Commerce,
the Office of the Attorney General's Residential Utilities Division, the Department of Public
Safety, and if the carrier proposes to serve within the metropolitan area, the Executive Director
of the Metro Emergency Services Board. Minn. Rules pt. 7812.0550, subpt. 3 establishes the
requirements for a 911 plan.
IV. ANALYSIS
The Department believes that Tekstar Communications, Inc.'s request to amend the certificate of
authority fulfills the requirements of Minn. Stat. §237.16, subd. 4 and Minn. Rules pt.
7812.0300, subpt. 5. The company has stated that it has served notice of its proposals on the
Docket No. P5542/1\4-12-1304
Analyst assigned: Bonnie J. Johnson
Page 3
parties identified in Minn. Rules pt 7812.0200, subpt. 6. The filing included service area maps
and a descriptive narrative delineating the petitioner's proposed service area changes. The filing
does not involve an acquisition under Minn. Stat. §237.23 and, to date, the Department is not
aware of any objections to the petition. The Company received Commission approval of its
interconnection agreement with US WEST, now Qwest dba CenturyLink QC, on March 23, 1998
in Docket No. P5542/M-99-214, and Commission approval of its 911 plan, with annual updates.
The 2011 911 plan update, Docket P5542/EP-11-710, remains open, however, the Department of
Public Safety has not submitted comments expressing concerns with the filing or requested
Tekstar Communications, Inc. provide additional information. Tekstar Communications, Inc.
will need to receive Commission approval of an updated 911 plan covering the expanded service
area, any necessary interconnection agreements and the company must file an updated price
list/tariff prior to offering service in the Proposed Service Area.
V. ALTERNATIVES
1. Grant Tekstar Communications, Inc. petition without conditions;
2. Grant Tekstar Communications, Inc. conditional authority to provide facilities based
services in the exchanges included in the Twin Cities Rate Center where Qwest dba
CenturyLink QC, Citizens Telecommunications of Minnesota, Inc., and Frontier
Communications of Minnesota, Inc. are currently the Incumbent Local Exchange Carriers
(ILECs); in the exchanges of Lindstrom, Scandia Marine and Taylors Falls where
Citizens Telecommunications of Minnesota, Inc. is currently the ILEC; the exchanges of
Henderson, LeCenter and Montgomery where Frontier Communications of Minnesota,
Inc. is currently the ILEC; the exchanges of Cambridge, LeSueur, North Branch,
Princeton and Stillwater where Qwest dba CenturyLink QC is currently the ILEC; and
the exchanges of Chaska, Cokato, Hastings, Howard Lake, Norwood and Osseo where
Embarq Minnesota, Inc. dba CenturyLink is currently the ILEC conditioned upon the
Company receiving Commission approval of an updated 911 plan covering the expanded
service area, any necessary. interconnection agreements and the company must file an
updated price list/tariff prior to offering service in the Proposed Service Area.
3. Deny Tekstar Communications, Inc. petition.
VI. RECOMMENDATION
2. Grant Tekstar Communications, Inc. conditional authority to provide facilities based
services in the exchanges included in the Twin Cities Rate Center where Qwest dba
CenturyLink QC, Citizens Telecommunications of Minnesota, Inc., and Frontier
Communications of Minnesota, Inc. are currently the Incumbent Local Exchange Carriers
(ILECs); in the exchanges of Lindstrom, Scandia Marine and Taylors Falls where
Docket No. P5542/M-12-1304
Analyst assigned: Bonnie J. Johnson
Page 4
Citizens Telecommunications of Minnesota, Inc. is currently the ILEC; the exchanges of
Henderson, LeCenter and Montgomery where Frontier Communications of Minnesota,
Inc. is currently the ILEC; the exchanges of Cambridge, LeSueur, North Branch,
Princeton and Stillwater where Qwest dba CenturyLink QC is currently the ILEC; and
the exchanges of Chaska, Cokato, Hastings, Howard Lake, Norwood and Osseo where
Embarq Minnesota, Inc. dba CenturyLink is currently the ILEC conditioned upon the
Company receiving Commission approval of an updated 911 plan covering the expanded
service area, any necessary interconnection agreements and the company must file an
updated price list/tariff prior to offering service in the Proposed Service Area.
/jl
Depend on our - people. Count on our advice.!"
October 25, 2016
Daniel P. Wolf
Executive Secretary
MN Public Utilities Commission
121 Seventh Place, Suite 350
St. Paul, MN 55101-2147
Re: In the Matter of a Request to Amend the Certificate of Authority of Tekstar
Communications, Inc. to Expand its Service Area
MPUC Docket No. P-5542/M-12-1304
Dear Mr. Wolf
The Commission granted Tekstar Communications, Inc. ("Tekstar") conditional authority to provide
facilities -based local exchange services areas in certain areas in the above referenced docket. The
Commission Order in this docket requires Tekstar to:
1) have an approved interconnection agreement with the incumbent local exchange carrier serving the
areas;
2) have an approved 911 plan for the affected area(s); and
3) have an approved tariff for the affected area(s) prior to offering service.
The purpose of this filing is to inform the Commission that Tekstar has entered a resale agreement with
a facilities -based CLEC with a statewide service area. This arrangement allows Tekstar to choose
whether to build or lease when serving specific areas. Should Tekstar choose to build facilities in these
areas, Tekstar will obtain interconnection with the ILEC serving those areas. Otherwise Tekstar will
resell a CLEC's services in that area, obviating the need for Tekstar to obtain an ICA with the ILEC
serving that area. In any case Tekstar will meet the other two conditions prior to providing local service
by: 1) obtaining approval of a 911 plan which reflects resold or facilities -based 911 plan as appropriate
for the affected area(s); and 2) have a Commission approved tariff to for the affected area(s).
If you have any questions in this matter please contact me at 651.621.8322 or tgburns@otcpas.com
Sincerely,
ls/ Thomas G. Burns
Thomas G. Burns
Consultant for Tekstar Communications, Inc.
St Paul Office 12675 Long Lake Road I St. Paul, MN 55113-1117 1651.483.4521 1651.483.2467 Fax
Minneapolis 1 300 Prairie Center Dr., Ste. 300 1 Minneapolis, MN 55344-7908 1 952-941-9242 1 952-941-0577 Fax
www.otepas.com
ELK RIVER CITY 1914
Elk River
Landfill
Plaisted
Companies
_ Menards
adowvale
School
Elk River
Sherburne
High i
Government
School
Center
Walmart
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Pinewood Golf Club
Spectrum
91
Great
Middle Schc
R
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Home Dep<
MAP KEY
Arvig Fiber Facility
e Ford
Brothers
Fire &
Security
.% a r vi
888.992.7844 1 arvig.com
Essential
2
PBS -TPT
14
Community Connection
3
KPXM - ION
16
EWTN
4
WCCO - CBS
17
3ABN
5
KSTP - ABC
18
TBN
6
Community Connection WX
19
C-SPAN 3
8
The CW
21
C-SPAN
9
KMSP - FOX
22
KSTC
10
Tri-City Cable
53
C-SPAN 2
11
KARE-NBC
601
McTV
12
WFTC - MNT
604
Court TV
13
QVC
605
StartTV
Choice Includes Essential Channels
15
NewsNation
46
Cartoon Network
20
TBS
47
Lifetime
23
Game Show Network
48
Travel Channel
24
HGTV
49
A&E
25
ESPN
50
Animal Planet
26
ESPN2
51
CNBC
29
Bally Sports North
52
CNN Headline News
30
Big Ten Network
54
CNN
31
Golf Channel
55
truTV
32
FXX
56
Fox News Channel
34
GAC Family
57
Hallmark Channel
36
USA
58
Discovery
37
Universal Kids
59
NewsmaxTV
38
E!
60
AMC
39
TNT
62
Syfy
40
Disney
63
Magnolia Network
41
Disney XD
64
Freeform
42
ID
65
National Geographic
43
TLC
66
Bravo
44
Food Network
67
FX
45
History
68
Weather Channel
Complete Includes Essential and Choice Channels
27
ACC Network
112
Independent Film Channel
80
Pop TV
113
Smithsonian Channel
102
Destination America
115
Viceland
103
Discovery Family Channel
116
Hallmark Drama
104
The Science Channel
117
Turner Classic Movies
105
MotorTrend
118
Hallmark Movies & Mysteries
106
American Heroes Channel
119
SEC Network
108
REELZ
120
Outdoor Channel
109
fyi,
122
NFL Network
111
SundanceTV
123
ESPNU
606
607
608
609
610
612
613
618
620
71
72
73
74
75
76
78
79
110
121
126
127
136
149
611
614
615
616
617
124
125
128
135
144
145
150
152
Premium Packages
TBDTV
Purchase a la Carte with Choice and
Heroes & Icons
Complete WiFi Plans
getTV
HBO -Cinemax
This TV
Quest
300 HBO 311 MoreMAX
True Crime
301 HBO 2 312 MAX Latino
Circle
302 HBO Signature 313 55tarMAX
TrueReal
303 HBO Family 314ThrillerMAX
Dab[
304 HBO Comedy 315 MovieMAX
305 HBO Zone 316 OuterMAX
310 Cinemax 317 ActionMAX
ESPNews
Oxygen
RFD -TV
Lifetime Real Women
Oprah Winfrey Network
Lifetime Movie Network
MSNBC
Inspiration Network
BBC America
Fox Sports 1
Bally Sports North PLUS
Fox Business Network
Big Ten Network Alternate
WE
Laff
Ion Mystery
KOOLTV
Bounce
Grit
Nat Geo Wild
CBS Sports Network
FX Movie Channel
Disney Junior
Olympic Channel
Fuse
Boomerang
Fox Sports 2
Showtime-TMC
320 Showtime
321 Sho 2
322 Sho Showcase
323 Sho Extreme
324 Sho Beyond
325 Showtime Family Zone
326 Sho Next
327 Sho Women
328 Flix
330 Movie Channel
331 Movie Ch Xtra
STARZ ENCORE
340 STARZ
341 STARZ Edge
342 STARZ Kids & Family
343 STARZ in Black
344 STARZ Cinema
350 STARZ ENCORE
351 STARZ ENCORE Westerns
352 STARZ ENCORE Classic
353 STARZ ENCORE Suspense
354 STARZ ENCORE Black
355 STARZ ENCORE Action
WatchWEverywhere
It's easy to stream more than 70 of
your favorite channels and shows,
including live content, almost
anywhere on almost any device
with WatchTVEverywhere. FREE
with your Arvig television service:
Register at arvig.net/wtve!
All services based on Arvig service area; some restrictions apply. Customer must subscribe to an adequate speed of Arvig internet service. Atypical Arvig WiFiTV stream requires Wit. A free Amazon account with a valid billing
address is required to use the Fire TV Stick. See Arvig for details. Product details, channel lineups, pricing and availability subject to change without notice. "Available applications vary by device type; see list of Supported Devices at
arvigmet/wifity. Cloud DVR recordings can be viewed outside the home on an individual show and/or network basis. Not all content is available in HD. Ifyou are unsure ifyour devicesupports HD,yourdevice manufacturerwlll be
able to help. ReplayTV is enabled/disabled on an individual show and/or network basis. WIVE: Customers have access to programming they currently receive from Arvig on their television plan. Some networks have applications you
can download to your device. Visit your devices app store and login with your WatchTVEverywhere username and password when prompted for authentication. ®Arvig 2022 Item203
TELEVISION! TELEVISION TELEVISION
Arvig® provides the latest in TV entertainment with
features like Cloud DVR, Replay TV and FREE` HD.
Plan Options
Complete......................................................................... $124.00
Choice............................................................................... $111.00
Essential............................................................................. $55.00
Each plan includes 1 stream, 10 hours of Cloud DVR service and
FREE HD service as available.
Premium Options
HBO - Cinemax Plex....................................................... $28.95
Showtime -The Movie Channel Plex....................... $14.95
STARZ ENCORE Plex...................................................... $14.95
Additional Concurrent Streams
(Number of screens you can watch at the same time.)
PerStream............................................................................$5.00
Cloud DVR Service
(Digital Video Recorder)
10 Hours ..................................................... included with plan
20 Hours................................................................................$5.00
40 Hours............................................................................. $10.00
100 Hours.......................................................................... $15.00
200 Hours.......................................................................... $20.00
Arvig® provides the latest in TV entertainment with
features like Cloud DVR, Replay TV and FREE" HD.
Plan Options
Complete......................................................................... $124.00
Choice............................................................................... $111.00
Essential............................................................................. $55.00
Each plan includes 1 stream, 10 hours of Cloud DVR service and
FREE HD service as available.
Premium Options
HBO - Cinemax Plex....................................................... $28.95
Showtime -The Movie Channel Plex....................... $14.95
STARZ ENCORE Plex...................................................... $14.95
Arvig® provides the latest in TV entertainment with
features like Cloud DVR, Replay TV and FREE" HD.
Plan Options
Complete......................................................................... $124.00
Choice............................................................................... $111.00
Essential............................................................................. $55.00
Each plan includes 1 stream, 10 hours of Cloud DVR service and
FREE HD service as available.
Premium Options
HBO- Cinemax Plex...................................................... : $28.95
Showtime -The Movie Channel Plex....................... $14.95
STARZ ENCORE Plex......................................................$14.95
Additional Concurrent Streams Additional Concurrent Streams
(Number of screens you can watch at the same time.) (Number of screens you can watch at the same time.)
PerStream............................................................................$5.00
Cloud DVR Service
(Digital Video Recorder)
10 Hours ............................
20 Hours ............................
40 Hours ...................................
100 Hours ................................
200 Hours ................................
..................included with plan
............................................. $ 5.00
.......................................... $10.00
.......................................... $15.00
.......................................... $20.00
PerStream............................................................................$5.00
Cloud DVR Service
(Digital Video Recorder)
10 Hours ..................................................... included with plan
20 Hours................................................................................$5.00
40 Hours............................................................................. $10.00
100 Hours.......................................................................... $15.00
200 Hours..........................................................................$20.00
Installation Charges Installation Charges Installation Charges
WiFi TV Plan self -install .....................................................FREE WiFi TV Plan self -install ..................................................... FREE WiFi TV Plan self -install ..................................................... FREE
Customer supplies own device(s). Customer supplies own device(s). Customer supplies own device(s).
WiFi TV Plan install kit ................................................... $60.00
Includes one Amazon Fire TV Stick and instructions.
WiFi TV Plan Arvig installation ................................... $50.00
Includes installation ofdevice(s) and registration/setup of account.
G a r v i g
888.99.ARVIG I arvig.corra
Melrose, Grand Meadow and surrounding areas. Based on service area; some restrictions
apply. Customer must subscribe to an adequate speed of Arvig Internet service. Atypical
Arvig WIMTV stream requires 5Mb. A free Amazon account with a valid billing address is
required to use the Fire TV Stick. See Arvig for details. Product details, channel lineups,
pricing and availability subject to change without notice. Available applications vary by
device type —see list of Supported Devices at arvignet/wifity. Cloud DVR recordings can
be viewed outside the home on an individual show and/or network basis. Not all content is
available in HD. If you are unsure if your device supports HD, your device manufacturer will
be able to help. Replay TV Is enabled/disabled on an Individual show and/or network basis.
®Arvig 2022 Item177
WiFi TV Plan install kit ................................................... $60.00
Includes oneAmazon Fire TV Stick and instructions.
WiFi TV Plan Arvig installation...................................$50.00
Includes installation of device(s) and registration/set up of account.
arvi
888.99.ARVIG I %arvig.corn
Melrose, Grand Meadow and surrounding areas. Based on service area; some restrictions
apply. Customer must subscribe to an adequate speed of Arvig internet service. A typical
Arvig WiFi TV stream requires SMb. A free Amazon account with a valid billing address is
required to use the Fire TV Stick. see Arvig for details. Product details, channel lineups,
pricing and availability subject to change without notice. Available applications vary by
device type —see list of Supported Devices at arvig.nettwifity. Cloud DVR recordings can
be viewed outside the home on an Individual show and/or network basis. Not all content is
available in HD. If you are unsure if your device supports H D, your device manufacturer will
be able to help. ReplayTV is enabled/disabled on an individual show and/or network basis.
®Arvig 2022 Iteml77
WiFi TV Plan install kit...................................................$60.00
includes one Amazon Fire TV Stick and instructions.
WiFi TV Plan Arvig installation ................................... $50.00
Includes installation of device(s) and registration/setup of account.
•
G--E� arvig
888.99.ARVIG I arvig,corrf
Melrose, Grand Meadow and surrounding areas. Based an service area; some restrictions
apply. Customer must subscribe to an adequate speed of Arvig Internet service. A typical
Arvig VJIFi TV stream requires 51VIb. A free Amazon account with a valid billing address Is
required to use the Fire TV Stick See Arvig for details. Product details, channel lineups,
pricing and availability subject to change without notice. Available applications vary by
device type —see list of Supported Devices at arvig.net/wil5ty. Cloud DVR recordings can
he viewed outside the home on an individual show and/or network basis. Not all content is
available in HD. If you are unsure if your device supports HD, your device manufacturer will
be able to help. Replay TV is enabled/disabled on an individual show and/or network basis.
®Arvig 2022 Item177
List of Municapalities served by Tekstar Communications, Inc.
City
Contact
Akeley
Kristi Kath
Clerk
218-652-2465
Battle Lake
Val Martin
Clerk
218-864-0424
Bertha
Janet Umland
Clerk
218-924-4454
Bluffton
Connie Stelzer
Clerk
218-385-4814
Callaway
Shelly Dillon
Clerk
218-375-4691
Cass Lake
Sue Uhrinak
Clerk
218-335-2238
Clitherall
Kathy Staples
Clerk
218-864-5161
Deer Creek
Thomas Parish
Clerk
218-462-2001
Dent
Karen E Johnson
Clerk
218-758-2233
Detroit Lakes
Kelcey Klemm
Administrator
218-846-7123
Frazee City
Jordin Roberts
Administrator
218-334-4991
Hawley City
Lisa Jetvig
Clerk
218-483-3331
Henning City
Kim Schroeder
Clerk
218-548-7581
Gary City
BindyThronson
Clerk
218-356-8600
Hewitt City
Kimberly lenarz-Greenwaldt
Clerk
218-924-4366
Longville City
Christina Herheim
Clerk
218-363-2022
Mahnomen City
Karie Whitson -Kirschbaum
Administrator
218-935-2573
Nevis City
Dawn Veit
Administrator
218-652-3866
New York Mills City
Julie Roberts
Clerk
218-385-2213
Osakis City
Angela Jacobson
Clerk
320-859-2150
Ottertail City
Amanda Thorson
Clerk
218-367-2250
Park Rapids
Berit Ramstad Skoyles
Clerk
218-732-3163
Perham City
Jonathan Smith
Manager
218-346-9799
Richville City
Leslie Lee
Clerk
218-371-0079
Staples City
Tara Greer
Clerk
218-894-2550
Twin Valley City
Rachel Johnson
Clerk
218-584-5254
Ulen City
Sandy Braseth
Clerk
218-596-8849
Vergas City
Julie Lammers
Clerk
218-342-5996
Wadena
Kim Schroeder
Administrator
218-632-2750
Walker City
Hope Fairchild
Administrator
218-547-5501
Waubun City
Phil Dassinger
Clerk
218-473-3050
Parkers Prairie City
Beth Wussow
Administrator
218-338-5059
Eagle Bend City
Kevin Hess
Administrator
218-738-5982
Grand Meadow
Scott Kerrins
Administrator
507-754-5280
Racine
Rob Mathias
Clerk
507-378-2931
Wykoff
Rebecca Schmidt
Clerk
507-352-6082
City Council Minutes
August 1, 2022
Page 2
Council directed Mr. Portner to provide information about the weeds. \�
6.1 Introduction of Elk River Municipal Utilities General Manager
Deputy General Manager Mark Hanson introduced himself.
Council welcomed Mr. Hanson.
6.2 Retirement Recognition: Dawn Swanson
Ms. Allard discussed Ms. Swanson's history with the city.
Mayor Dietz read and presented a plaque to Ms. Swanson and thanked her for her
service.
7.1 Consider Issuance of Competitive Cable Franchise by Tekstar
Communications, Inc. (Arvig)
Ms. Allard presented the staff report.
Mayor Dietz opened the public hearing.
Joel Smith, Manager of Video Operations with Arvig — Provided a history of his
company. He stated the TV service they'd like to offer is app-based and can be
streamed on devices. He stated they want to provide services in Elk River to
customers currently being served with their telephone and internet services.
Mayor Dietz questioned if Arvig would be serving the same locations Spectrum
currently serves.
Mr. Smith stated no. He stated they are interested in providing service in areas where
they already have fiber facilities within the city. He stated as new areas are brought to
them, that they can build a business case around, they would look to offer the same
service in those areas.
Councilmember Christianson asked when they could start laying fiber.
Mr. Smith stated they could enable the TV service at anytime with the existing fiber
structure. He stated they could offer service the day after an agreement is formalized.
(Mr. Fraser spoke regarding a different topic.)
Scott Fraser, 11678 200th Avenue, stated there is no way for residents in the
Brentwood Subdivision to access Highway 169 when the Highway 169 project will
be complete. Public Works Director Justin Femrite assisted Mr. Fraser with his
concerns outside the Council meeting room.
OWA
1■ E A E I 1 1
INATUREI
City Council Minutes Page 3
August 1, 2022
�~ Mayor Dietz closed the public hearing and asked Mr. Shepherd if he had any
additional comments.
Mr. Shepherd stated there is no further action needed from Council tonight and the
attorney would come back later with a full report.
Council recessed at 6:51 p.m. to go into worksession and reconvened at 6:53 p.m.
8.1 Discuss Work Session Items
Mr. Portner reviewed the staff report.
9. Council Liaison Updates
Councilmembers provided updates as outlined in the respective advisory boards'
minutes.
10.1 Highway 10 Access Study
Mr. Femrite presented the staff report and introduced SRF Consulting Group
Project Manager Molly Stewart.
Ms. Stewart discussed the study and highlighted the following in her presentation:
■ Project schedule
■ Study area
■ Characteristics
■ Study goals
■ Issues and needs
■ Engagement efforts
■ Long term alternative development process
■ Next steps
She noted the study would be a guiding document as development occurs until
funding becomes available for conversion to a freeway system. She stated a second
phase of the project is working with MnDOT on interim solutions to relieve traffic
issues until the freeway can be built. She asked for Council feedback on the study.
Mr. Femrite updated Council on conversations with MnDOT regarding interim
solutions for the highway. He stated MnDOT would like to eliminate the signal at
171" Avenue and install a Reduced Conflict Intersection (RCI). He stated MnDOT is
strongly supportive of the RCI concept, but an agreement was never reached on this
solution because our focus groups, local businesses, and area trucking companies
don't feel this type of intersection will work for them. He explained there are no
recommendations in the study because agreement couldn't be reached on interim
road improvement solutions. He further explained the secondary study and the need
to develop alternative interim solutions to highway issues.
10■EAEI Ir
NATURE
CITY OF ELK RIVER, MINNESOTA
ORDINANCE NO. 23-
AN ORDINANCE GRANTING A FRANCHISE TO TEKSTAR COMMUNICATIONS, INC. TO
CONSTRUCT, OPERATE, AND MAINTAIN A CABLE SYSTEM AND PROVIDE CABLE
SERVICE IN THE CITY OF ELK RIVER, MINNESOTA.
RECITALS
1. This Cable Franchise Ordinance ("Franchise") is made and entered into by and between the City
of Elk River, a municipal corporation of the State of Minnesota ("City") and Tekstar Communications,
Inc. ("Grantee").
2. Pursuant to the City's cable regulatory ordinance ("Cable Ordinance"), the City is authorized
to grant and issue a non-exclusive Franchise authorizing the Grantee to provide Cable Service and
construct, operate, and maintain a Cable System in the City.
3. Upon evaluation of Grantee's technical, financial, legal qualifications, completion of Franchise
negotiations, and as a result of a public hearing, the City finds that it is in the best interests of the City
and its residents to grant the Franchise to Grantee.
This Franchise is nonexclusive and is intended to comply with applicable laws and regulations.
THE CITY COUNCIL OF THE CITY OF ELK RIVER HEREBY ORDAINS: SECTION 1.
GENERAL PROVISIONS
Section 1.1 Definitions.
Unless otherwise defined herein, the terms, phrases, and words contained in this Franchise have the
meaning provided in the Cable Ordinance. Terms, phrases and words contained in this Franchise that
are not defined here or in the Cable Ordinance will be as defined in applicable law.
Section 1.2 Written Notice.
All notices, reports, or demands required to be given in writing under this Franchise or the Cable
Ordinance must be delivered personally to any officer of Grantee or the City Administrator or deposited
in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon,
addressed to the party to whom notice is being given, as follows:
If to City: City of Elk River
Elk River City Hall
13065 Orono Parkway
Elk River, MN 55330
Attn: City Clerk
DOCSOPEN\SH255\16\843960.v2-2/3/23
With copies to: Chair, Sherburne/Wright Counties Cable Communications Commission
c/o City of Buffalo
212 Central Avenue
Buffalo, MN 55313
If to Grantee: Tekstar Communications, Inc.
ATTN: Legal Department
150 Second Street SW
Perham, MN 56573
Such addresses may be changed by either party upon notice to the other parry given as provided in
this Section.
SECTION 2. GRANT OF FRANCHISE
Section 2.1 Grant.
a. Grantee is authorized to erect, construct, operate and maintain in, along, across, above,
over and under the Rights -of -Way, now in existence and as may be created or established during the
term of this Franchise any poles, wires, cable, underground conduits, manholes, and other conductors
and fixtures necessary for the maintenance and operation of a Cable System in the City. Nothing in
this Franchise shall be construed to prohibit the Grantee from offering any service over its Cable
System that is not prohibited by federal, state or local law.
b. This Franchise is granted pursuant to the Cable Ordinance, in all cases subject to and without
waiving applicable law. This Franchise is a contract and except as to those changes which are the result
of the City's lawful exercise of its general police powers, the City may not take any unilateral action
which materially changes the explicit mutual promises in this contract. In the event of any conflict
between the provisions of this Franchise and the Cable Ordinance, the provisions of this Franchise
shall govern.
C. This Franchise shall be nonexclusive and City may grant additional Franchises at any
time. The City will not grant an additional Franchise on terms and conditions more favorable or less
burdensome than those in this Franchise and Grantee shall have all rights provided by Section 14.4 of
the Regulatory Ordinance in the event an additional Franchise(s) is granted. The City may impose
additional terms and conditions in any additional Franchise.
d. The City shall comply with Section 14.4 of the Cable Ordinance in the event an
additional provider is legally authorized to provide Cable Service.
e. Grantee acknowledges the City's right to issue this Franchise. Upon acceptance of this
Franchise by Grantee as required by Section 8 herein, this Franchise shall supersede and replace any
previous ordinance or other authorization granting a Franchise to Grantee, and all rights, obligations
and claims under any previous Franchise are extinguished, except that the Grantee's obligation to
indemnify the City against claims that arose during the term of the previous Franchise shall continue
in full force and effect subject to applicable law.
DOCSOPEN\SH255\16\843960.v2-2/3/23
Section 2.2 Franchise Term.
This Franchise will be in effect for aperiod of fifteen (15) years from the date of acceptance by the
Grantee, unless sooner renewed or revoked.
Section 2.3 Service Area.
a. This Franchise is granted for the corporate boundaries of the City, as it exists from
time to time. Attached as Exhibit C is a description of Grantee's service area as of September 1, 2023.
b. Pursuant to Minn. Stat. §238.08, Subd. 1(c), the Grantee will extend its System and
offer Cable Service, within a reasonable time, to any areas, homes, and businesses within the City to
which the Grantee, a telephone company as defined in Minn. Stat. §237.01, offers local exchange
telephone service.
SECTION 3. SYSTEM
Section 3.1 System Capacity.
Grantee will continue to operate a System capable of providing a minimum of at least 75 video
programmed Channels throughout the term of this Franchise. The System must have return capability.
Section 3.2 Construction Deadline.
Grantee will use commercially reasonable efforts to complete any System extension and construction
of new facilities for new developments contemporaneous with installation of other utilities. The City
shall provide reasonable and timely advance written notice of the location of all new developments
to Grantee.
SECTION 4. COMMUNITY SERVICES
Section 4.1 Commercial Video Programming.
The Grantee will provide broad categories of video programming, including news, sports and
entertainment.
Section 4.2 PEG Access Facilities.
a. Access Channels. The Grantee shall dedicate two (2) Channels for public, education,
and government access ("PEG Access") programming. The two (2) PEG Access Channels must be
cablecast on the Basic Cable Service tier. All Subscribers who receive Cable Services offered on the
System must receive the PEG Access Channels at no additional charge. Only to the extent required by
Minn. Stat. §238.084, Subd. 1. (z) and permitted by applicable law, the VHF spectrum must be used
for the provision of at least one (1) of the PEG Access Channels. Nothing herein shall diminish the
City's rights to secure additional channels pursuant to Minn. Stat.§ 238.084, Subd. L(z), and applicable
FCC regulations.
b. Responsibility for PEG Access. The City will operate, administer, and manage PEG
Access programming pursuant to this Section 4.2. The City may delegate its PEG Access authority and
responsibilities to the Commission. The Grantee acknowledges that the Commission may coordinate
DOCSOPEN\SH255\16\843960.v2-2/3/23
the expenditure of Franchise Fees and PEG Capital Fees by and among the Commission's member
municipalities. Nothing herein shall obligate the City to make equipment or channels available for
public access programming or to any particular programmer.
C. Narrowcast. The City currently uses one (1) PEG Access Channel for programming
originated in, or primarily of interest to, Subscribers in the City while using a second PEG Access
Channel for programming produced or otherwise provided by the Commission which may be produced
in adjoining cities that are members of the Commission.
d. Live Origination. The Grantee shall continue to provide two-way capability permitting
transmission of live programming from the public institutional sites listed in Exhibit A -I attached. The
Grantee shall not be required to provide end -user equipment. The City may designate relocated or additional
live programming sites provided that the City shall pay the actual construction cost of connecting such
relocated or additional live programming sites prior to the Grantee's construction of same. The Grantee
must ensure that the System meets the technical standards attached as Exhibit Bat all live origination sites.
The Grantee must further ensure that the City can originate programming from City Hall consistent with
Section 4.2c.
e. High Definition. The two (2) PEG Access Channels shall be provided in high definition
("HD"). The City acknowledges that in order to receive Access Channels in HD format Subscribers may
be required to buy or lease special equipment, or pay additional HD charges applicable to all HD services.
f. PEG Access Capital SuMport. In addition to the requirements of Section 4.2(a)-(e) above,
the Grantee shall collect and remit a PEG capital fee of up to eighty-five cents ($.85) per Subscriber, per
month ("PEG Capital Fee"). The Grantee shall remit such payments on the same schedule as the Franchise
Fee. All amounts paid shall be subject to audit and recomputation and acceptance thereof does not constitute
an accord that amounts paid are correct. The PEG Capital Fee as of the Effective Date is eighty-five cents
($.85) per Subscriber, per month. Grantee may itemize any PEG Capital Fee on Subscriber's bills.
Payment by Grantee must be separate from and in addition to any Franchise Fee.
g. Use of PEG Capital Fee. The City and Grantee agree that the City will expend the
PEG Capital Fees solely for capital costs (consistent with GAAP) associated with PEG Access. In
consideration for Grantee's obligation to remit the PEG Capital Fee, the City agrees to provide financial
support for PEG Access that is equivalent to the amount of PEG Capital Fees collected and provided to
the City. Within sixty (60) days of written request, the City shall provide Grantee with an annual report
of any expenditures of the PEG Access Capital Fee to ensure such fees are used for capital costs related
to PEG Access. The report shall also demonstrate how the City fulfilled its requirement to provide
matching support for PEG Access. Based on the report, the Grantee may send a written notice to the
City alleging that the City failed to demonstrate that the PEG Capital Fee was used for capital or that
matching PEG Access support was provided. The City shall have thirty (30) days after receipt of the
written notice to provide additional information demonstrating compliance with the requirements of
this Section. If the Grantee continues to allege that the City has not complied with its obligations herein,
the Grantee may provide written notice of its intent to reduce and/or discontinue collecting and
remitting the PEG Capital Fee. If the City disputes the Grantee's actions, it may initiate any
enforcement action under the Cable Ordinance it deems appropriate.
h. Access Rules. The City may implement rules governing PEG Access Channels and
programming.
DOCSOPEN\SH255\16\843960.v2-2/3/23
i. Parity of Obligations. The City will impose equivalent PEG Access obligations on any
other franchised provider of Cable Service in the City.
Section 4.3 Drops and Service to Public Buildings.
a. Subject to applicable law, and provided that Grantee's service area includes the public
institutional site, Grantee must provide, without charge, monthly Basic Cable Service, one (1) Drop,
one (1) outlet, and one (1) Converter of the type and functionality made available to Subscribers
("Complimentary Service") to the public institutional sites listed in Exhibit A-2 attached. The
programming provided by Grantee is not for public display. The City shall hold the Grantee harmless
for any copyright, or other penalties, incurred due to improper use of free service. If additional
Converters, other customer premises equipment ("CPE") or other services (e.g., a broadband Internet
connection) are required to receive Complimentary Service, Grantee reserves the right to charge the
institution the published rate for such CPE or other services consistent with applicable law.
b. Subject to applicable law, the Grantee shall connect such additional public
administration buildings within Grantee's service area as mutually agreed upon by the City and
Grantee.
Section 4.4 Receipt of Subscriber Payments
The Grantee must maintain a convenient means for Subscribers to make payments such as the ability
to make payments electronically via a company website.
SECTION 5. ADMINISTRATION PROVISIONS
Section 5.1 Franchise Fee.
a. The Grantee shall pay a Franchise Fee to the City in an amount equal to five percent (5%)
of its Gross Revenues. The Grantee shall remit Franchise Fee payments to the City on a quarterly
basis within 60 days of the close of the preceding calendar quarter. Payments shall be based on Gross
Revenues generated during the preceding calendar quarter. In the event Grantee offers a bundle or
package of Cable Services and non -Cable Services at a discounted rate, the Grantee must allocate
revenues between Cable Services subject to the Franchise Fee and non -Cable Services (which, for the
avoidance of doubt, includes revenue from third -party programming services) that are not subject to
the Fee on a proportionate pro rata basis in accordance with Generally Accepted Accounting Principles
("GAAP"). In no event shall the Grantee allocate the revenues to evade its Franchise Fee obligations
under this Franchise or to disproportionately reduce Gross Revenues.
b. Each Franchise Fee payment must be accompanied by a report in form reasonably
acceptable to City detailing the computation of the payment. All amounts paid are subject to audit and
recomputation by the City, and acceptance of any payment must not be construed as an accord that the
amount paid is in fact the correct amount. In accordance with Minn. Stat. § 541.05, any action to
recover Franchise Fees must be commenced within three (3) years of receipt of the Franchise Fee
payment or due date for such payment.
C. In the event that any Franchise payment or recomputed payment is not made on or before
the dates specified herein, Grantee shall pay an interest charge, computed from such due date, at the annual
rate of one percent over the prime interest rate.
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Section 5.2 Rules of Grantee.
The Grantee may promulgate such rules, terms and conditions governing the conduct of its business provided
that such rules, terms and conditions must not be in conflict with the provisions of this Franchise, the Cable
Ordinance, or applicable laws or regulations.
SECTION 6. INDEMNIFICATION, INSURANCE, BONDS
Section 6.1 Indemnification.
By acceptance of this Franchise, the Grantee agrees to indemnify, defend, and hold the City harmless in
accordance with the Cable Ordinance.
Section 6.2 Insurance.
At the time of acceptance of this Franchise, the Grantee will file with the City a Certificate of
Insurance in accordance with the Cable Ordinance. The Grantee must maintain such insurance for
the entire term of this Franchise.
Section 6.3 Performance Bond.
a. The Grantee must furnish to the Commission, for the benefit of the City, a single
performance bond in the amount of Ten Thousand Dollars ($10,000.00) in a form and substance
reasonably acceptable to the Commission. The Grantee must maintain the bond until this Franchise
expires or is terminated.
b. The bond shall be conditioned upon Grantee's faithful performance in accordance with
the terms of this Franchise, the Cable Ordinance, and applicable laws and regulations. The bond must
provide that in the event the Grantee fails to comply with any law, ordinance or regulation, any damages
or loss suffered by the City as a result, including the full amount of any compensation, indemnification
or cost of removal or abandonment of any property of the Grantee, plus a reasonable allowance for
attorneys' fees and costs, up to the full amount of the security, will be recoverable jointly and severally
from the principal and surety of the bond, and further guaranteeing payment by the Grantee of claims,
liens and taxes due the City which arise. In the event this Franchise is revoked or the rights hereunder
relinquished or abandoned by Grantee, the City is entitled to collect any resultant damages, costs or
liabilities incurred by the City.
C. The City and Grantee acknowledge that it may be difficult or impossible to accurately
quantify actual damages or losses suffered by the City due to a violation or unsatisfied obligation under
this Franchise, the Cable Ordinance, or applicable laws or regulations. Accordingly, the City may, in
its reasonable discretion, collect liquidated damages in an amount of up to Two Hundred and Fifty
Dollars ($250.00) per violation of any provision of this Franchise, the Cable Ordinance, or applicable
laws or regulations in an amount not to exceed Five Thousand Dollars ($5,000.00) in any calendar
year. Each violation may be considered a separate violation for which separate liquidated damages
can be imposed.
d. In the event the City will make any claim against the bond or otherwise seeks to assess
liquidated damages, the City must comply with Section 14 of the Cable Ordinance governing
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enforcement of this Franchise.
e. The City's rights herein are in addition to all other rights the City may have and the City's
exercise of such rights does not constitute an exclusive remedy nor limit any other right.
SECTION 7. MISCELLANEOUS REQUIREMENTS
Section 7.1 Amendment of Franchise Ordinance.
The Grantee and the City may mutually agree, from time to time, to amend this Franchise. Any changes,
modifications or amendments to this Franchise must be made in writing, signed by the City and the Grantee.
Nothing herein is intended to expand or diminish the rights given to City under state law. The City reserves
its lawful rights, including its police powers, ordinance -making authority, and under power of eminent
domain law.
Section 7.2 Force Majeure.
In the event Grantee's performance of this Franchise is prevented due to a cause beyond its reasonable
control, such failure to perform must be excused for the period of such inability to perform.
Section 7.3 Severability.
If any term, condition or provision of this Franchise or the application thereof to any Person or circumstance
is held, to any extent, invalid, preempted or unenforceable, the remainder and all the terms, provisions and
conditions herein must, in all other respects, continue to be effective provided the loss of the invalid,
preempted or unenforceable provisions do not substantially alter the agreement between the Parties. In the
event a law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that
the Franchise provision which had been held invalid, preempted or modified is no longer in conflict
therewith, such Franchise provision will return to full force and effect and thereafter be binding upon thirty
(30) days written notice to the Grantee.
Section 7.4 Nonenforcement by City.
The Grantee is not relieved of its obligations to comply with this Franchise or the Cable Ordinance due to
any failure or delay of the City to enforce prompt compliance. The City and Grantee may only waive its
rights by expressly so stating in writing.
Section 7.5 Rights Cumulative.
All of the City's and Grantee's rights and remedies pursuant to this Franchise are in addition to and not
exclusive of any and all other rights and remedies available to the City or Grantee.
Section 7.6 Work Performed by Others.
All obligations of this Franchise apply to work performed by any agent, subcontractor or other Person
performing any work or services on behalf of the Grantee pursuant to this Franchise to the extent
applicable, however, in no event will any such Person obtain any rights to maintain and operate a
System or provide Cable Service.
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Section 7.7 Entire Agreement.
This Franchise sets forth the entire agreement between the parties respecting the subject matter hereof.
All agreements, covenants, representations, and warranties, express and implied, oral and written, of
the parties with regard to the subject matter hereof are contained herein. No other agreements,
covenants, representations or warranties, express or implied, oral or written, have been made by any
party to another with respect to the matter of this Franchise. All prior and contemporaneous
conversations, negotiations, possible and alleged agreements, representations, covenants and
warranties with respect to the subject matter hereof are waived, merged herein and therein and are
superseded hereby and thereby.
SECTION 8. ACCEPTANCE OF FRANCHISE
Section 8.1 Publication and Effective Date.
This Franchise will be effective on the date of acceptance by Grantee. This Franchise shall be enacted
and published in accordance with applicable local and Minnesota law.
Section 8.2 Time for Acceptance.
a. The Grantee must accept this Franchise within sixty (60) days of enactment by the City,
unless the time for acceptance is extended by the City. Acceptance by the Grantee will be deemed the
grant of this Franchise for all purposes.
b. Upon acceptance of this Franchise, the Grantee and City will be bound by all the terms,
conditions and obligations contained herein.
Section 8.3 Manner for Acceptance.
The Grantee must accept this Franchise in the following manner:
a. The Franchise must be fully executed and acknowledged by Grantee and delivered to
the City.
b. The Grantee must also deliver any construction bond and insurance certificates
required herein that have not previously been delivered, with its acceptance.
Section 8.4 Failure to Accept.
In the event the Grantee does not timely accept this Franchise in accordance with the requirements
herein, this Franchise and all rights granted herein are null and void.
Passed and adopted this 6th day of March 2023.
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CITY OF ELK RIVER
0
0
John J. Dietz, Mayor
Tina Allard, City Clerk
ACCEPTED: This franchise is accepted and we agree to be bound by its terms and conditions.
TEKSTAR COMMUNICATIONS, INC.
0
Name:
Its:
2023
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EXHIBIT A-1
(Live Origination Sites)
City of Elk River, City Hall 13065 Orono Pkwy NW, Elk River, MN 55330
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EXHIBIT A-2
(Complimentary Service Sites)
City Hall Locations
City of Elk River, City Hall 13065 Orono Parkway NW, Elk River, MN 55330
Safety Locations
Elk River Police Department 13077 Orono Parkway, Elk River, MN 55330
Elk River Fire Department - Station I - 415 Jackson Street, Elk River MN 55330
Elk River Fire Department - Station 2 - 13073 Orono Parkway, Elk River, MN 55330
Elk River Emergency Operations Center 13077 Orono Parkway, Elk River, MN 55330 Elk River
Public Works 19000 Proctor Road NW, Elk River, MN 55330
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EXHIBIT B
(Technical Standards- Live Origination Sites)
With respect to all sites listed in Exhibit A, the System shall meet or exceed the following
requirements:
1. The System shall operate in conformance with the technical standards
promulgated by the FCC pursuant to Title 47, Section 76.601 to 76.617, as may be
amended or modified from time to time.
2. The System shall be capable of continuous 24-hour operation without
signal degradation.
3. The System shall be capable of operation without failure, material performance
changes or signal degradation over an outdoor temperature range of -40 degrees F to +130
degrees F and over a variation in supply voltages from 105 to 130 volts AC.
4. The System will provide access channel connections up to the demarcation
point, both upstream and downstream, without material signal degradation or deterioration and
with signal quality equal to or better than any other channels. Material signal degradation or
deterioration where any signal problem including ghosting or other audio or visual distortion or
interference is apparent without special testing. The Grantee shall not be responsible for
technical problems deriving from facilities or equipment located beyond the demarcation point,
within the institutional site.
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Councilmember introduced the following resolution and moved its
City of adoption:
Elk
River RESOLUTION NO.23-
A Resolution Approving Summary Publication of Ordinance No. 23- Relating to Issuance of a
Franchise Agreement to Tekstar Communications, Inc.
WHEREAS, the City Council adopted a lengthy ordinance granting a 15-year franchise agreement of the
cable franchise to Tekstar Communications, Inc. which authorizes operation of a cable system and delivery of cable
services in the city pursuant to the Cable Ordinance; and
WHEREAS, as authorized by Minnesota Statutes, Section 412.191, subd. 4, the City Council has determined
that publication of the title and summary of the ordinances will clearly inform the public of the intent and effect of the
ordinance; and
WHEREAS, a printed copy of the ordinance is available for inspection during regular office hours in the office
of the city clerk.
NOW THEREFORE, BE IT RESOLVED that the following summary of the ordinance, by at least four -fifths
vote, is approved for publication:
City of Elk River, Minnesota
Ordinance No. 23-
The Tekstar franchise ordinance grants a 15-year cable television franchise to Tekstar Communications, Inc.,
authorizing operation of a cable system and delivery of cable services in the city pursuant to the Cable
Ordinance. The franchise ordinance authorizes Tekstar to use rights -of -way in the city to construct, operate
and maintain a system to provide cable services, imposes a franchise fee, and sets -forth certain other agreements
concerning operation of the system and delivery of cable services. The franchise ordinance is effective upon
acceptance by Tekstar.
The motion for adoption of the foregoing resolution was duly seconded by Councilmember , and
upon vote being taken thereon, the following voted in favor thereof:
and the following against:
whereupon said resolution was declared duly passed and adopted.
The following members were present:
By Order of the City of Elk River, Minnesota
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
the following absent: