Agenda - Council - 11/22/2016 - Laserfiche WebLink

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Technical: CenturyLink's affiliate is certificated by the Minnesota Public Utilities Commission to provide telephone service in Minnesota. CenturyLink is one of Minnesota's largest incumbent local exchange carriers and currently provides telephone service in a portion of the City. CenturyLink or its affiliates are authorized to operate cable systems in multiple markets in the United State. The application identifies an experienced management team for cable operations, and describes a state-of-the-art delivery platform that will be utilized. Financial: CenturyLink's parent, CenturyLink, Inc., is a large publicly-traded telecommunications company. The application and other SEC filings publicly available on-line indicate that the company had operating revenues in excess of$1813 for the fiscal year ended 2013. The application represents that CenturyLink will not require any unique funding sources or borrowing to deploy its cable service. The proposed franchises will also require CenturyLink to: • pay a 5% franchise fee and provide 3% PEG support; • post a $100,000 performance bond and a $25,000 letter of credit and be subject to specified sanctions for various potential franchise violations; • provide insurance of at least $1,500,000 (municipal statutory limit on liability) per person, and $2,000,000 aggregate; • indemnify the Cities from suits or liabilities arising out of cable operations, the franchise, or a franchise breach, and specifically indemnify the Commission and Cities against any claim by Comcast. Finally, CenturyLink's affiliate currently has rights to access rights-of-way and has constructed a telephone system and provides telephone and internet access services in the Cities. BE IT RESOLVED FURTHER that the Commission recommends that the Cities adopt the franchise negotiated by the Commission's staff and legal counsel. Approved and signed this day of air Attest: Ex cutive Director : 488457v1 IUV QU210-6 3