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<br />Page 1 of I <br /> <br />Worden, Heather <br /> <br />From: Johnson, Bonnie <br />Sent: Tuesday, November 28, 2006 11 :45 AM <br />To: {Cass}-Commissioners <br />Cc: Worden, Heather <br />Subject: FW: Cable TV Franchise Agreement <br /> <br />Commissioners- The CableOne franchise agreement is on the next agenda. Keith and Birch have been asked to <br />review the proposal. Below are Keith's comments. Although we had no fee in the franchise agreement entered <br />into 15 years ago, they Board may wish to consider a percentage fee at this time. <br /> <br />Bonnie Johnson <br />County Coordinator <br />jQhnson@co.ci3Ss. ng,u~ <br />701-241-5720 (voice) <br />701-297 -6020 (fax) <br /> <br />From: Berndt, Keith <br />Sent: Tuesday, November 28,200610:49 AM <br />To: Johnson, Bonnie; Montplaisir, Michael <br />Subject: Cable TV Franchise Agreement <br /> <br />Bonnie and Mike, <br /> <br />The Cableone Franchise agreement for providing service to unincorporated areas in the County is on the <br />Commission Agenda for County renewal. The existing agreement was approved in 1994 as a 15 year agreement <br />(expires on August 29,2009). <br /> <br />I don't believe the County has charged a Franchise Fee in the past. Its not my area of expertise, but it appears <br />the FCC allows the Local Franchise Authority (LFA - County in this instance) the authority to charge up to 5% of <br />the Cable Companies Gross Receipts as a franchise fee. I appears some Counties around the Country do <br />charge a 5% franchise fee. I did a quick internet search and noted Cobb County Georgia collects $3.5 million a <br />year that goes toward county operations including transportation. They are a County of 600,000 so 5% of rural <br />Cass County would be a small fraction of that, however it may still be significant revenue. <br /> <br />In our case, the utility companies are allowed to place utilities by permit in County right of ways at no cost subject <br />to certain permit conditions. In recent years, it seems like we've had more and more utility lines in the right of way <br />and its not without its problems and expense to the County Government. <br /> <br />Prior to approving the new Franchise agreement, the Commission may want to make a consciences decision on if <br />they'd like to charge a franchise fee. Your thoughts? <br /> <br />Keith Berndt <br />Cass County Engineer <br />Pel11d1@cO.C<lS$..nd.us <br />www.C<;lsscau~\ygov.com <br />phone. 701.298.2372 <br />fax - 701.297.6096 <br /> <br />11/28/2006 <br />