City hires lobbyist for telecommunications reform

City wants

franchising role

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- When telecommunication reform proposals are drawn at the Capitol next session, the city of New Ulm wants to make sure its voice is heard.

The city council approved a $1,600 expenditure for a lobbying effort Tuesday. The Minnesota Association of Community Telecommunications Administrators (MACTA) will hire a lobbyist to sway legislators to approve reform that benefits local governments.

Tom MacAulay, assistant city manager, said the city should maintain control over local cable television franchise agreements.

"There has been a push in the Legislature and the (Gov. Jesse) Ventura administration to rewrite the telecommunications laws," MacAulay said.

However, the legislation promoted last year -- which never got passed out of committee -- would have taken power away from local governments, MacAulay contends.

"It would take away the authority of franchising authorities, and place it in another body," he said.

One plan would give the state Public Utilities Commission control over all franchise agreements in the state. MacAulay believes that would be a bad move.

"The state public utilities would be overseeing every system in every town in the state," MacAulay said. "It makes sense that people on the local level who know what the needs are have control."

Local governments can make sure services are delivered and quality picture is available, MacAulay says. If the state utilities commission took over the franchising role, New Ulm residents would likely be calling St. Paul instead of city hall when they have a problem with their service.

Last January, the council unanimously approved a resolution stating that the city must maintain the right to award a cable television franchise and that the city is opposed to any legislation that would revoke that authority.

Holly Hansen, president of MACTA in St. Paul, said the organization will stress to legislators that cities are best suited to handle franchise agreements.

"Part of our message is that cities are doing a good job with enforcement," Hansen said. She believes that local governments can be more responsive to complaints and ensuring that local programming options are provided.

MACTA has fought against new legislation in the past. This year, the organization will hire a law firm to draft bill proposals and submit them to legislators. (Only a legislator can submit a bill).

MacAulay said he isn't sure what the proposed legislation will say, but he knows it will keep local governments as franchise authorities.

"Instead of being on the defensive, they want something to present from the city's perspective," MacAulay said.

It is unclear what would happen to franchise fees the city currently collects if the state takes control of franchise agreements.

New Ulm collects three percent of revenue, or about $50,000 annually from Time Warner, MacAulay said. Time Warner, with 5,400 subscribers in New Ulm, generates about $1.7 million locally, he said.

One proposal last year had the state collecting the franchise fees, then redistributing the money elsewhere, MacAulay said.

"It's not real clear," he said. "It's one of the potential things that can happen."

MACTA is a non-profit organization with more than 140 members -- cities or municipalities -- statewide.