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Victoria council approves notice of intent and $10,000 application fee to accept cable-franchise applications
Summary
The City of Victoria approved a notice of intent to accept cable-franchise applications and set a $10,000 application fee; staff said Comcast has expressed interest in bringing full-service cable to parts of the city and the process is governed by state statute and FCC rules.
The Victoria City Council on Feb. 24 approved a notice of intent to accept applications for a local cable franchise and set an application fee of $10,000 to cover staff and legal review costs, actions staff said are required under state statute and FCC rules for local cable-franchise authority.
The nut graf: City staff told the council that Comcast has requested to begin cable construction and to bring its full-service package to growth areas of the city; the council approved the fee, the notice of intent, and authorization for staff to publish the notice.
Assistant City Manager Alyssa Nelson presented Item 6.3, saying staff had been contacted by a cable provider seeking to construct within the City of Victoria and that the council, as the local cable franchise authority, must follow a statutorily prescribed process. Nelson said Mediacom is the city's existing cable franchise, issued in 2013 and extended in 2023, and that Comcast requested permission to serve areas including Hunters Brook, Victoria South and Marsh Hollow and to offer bundled Xfinity services, security and television.
Nelson summarized the process she proposed: council approval of a notice of intent to accept applications; two published notices in the Waconia Patriot (planned for March 6 and March 13), a 20-day application window beginning on March 6, a subsequent public hearing at council, and authority to direct staff to negotiate a franchise if warranted. Staff recommended a $10,000 application fee; Nelson said that fee aligns with fees charged by other metropolitan-area cities and with the city attorney's recommendation.
Attorney Bose told council members he was comfortable with a $10,000 fee, saying it would cover staff and legal costs and "fully keep away nuisance applicants." Bose noted nearby cities had charged different amounts (for example, Minitrista charged $2,500) but said $10,000 is reasonable for a single-city process and would discourage frivolous bids.
Attorney Vos (transcript identifies the speaker as Attorney Vos) and several council members discussed policy tradeoffs and the practical effects of new construction in public rights of way. Vos said the process is driven by older State law and that moving forward with the notice is the only statutory means to allow a provider such as Comcast to offer cable-video services in Victoria. Nelson and council members acknowledged construction can be disruptive when companies trench or bury fiber and said staff will work to minimize disruptions if the franchise moves forward. Nelson and Vos also noted that companies can deploy Internet and phone services under right-of-way permits, even without a cable franchise.
The council took three separate votes required by the process: to establish the $10,000 application fee (motion by Council Member Reif, second by Council Member Ivanski); to approve the notice of intent to accept applications (motion by Council Member Peterson, second by Council Member Reif); and to authorize publication of the notice (motion by Council Member Rivansky, second by Council Member Reif). Each motion passed by voice vote, recorded in the meeting as "Aye. Motion carries."
Ending: The council authorized staff to publish the notice and begin the 20-day application period starting March 6; public hearings and application review will follow per the timeline presented by staff.
