A resolution authorizing the employment of Tillman L. Lay of the law firm of Miller, Canfield, Paddock & Stone to represent the Metropolitan Government in the appeal of a ruling of the Federal Communications Commission that reduces franchise fees from cable TV service.

Whereas, under its franchise for cable TV service, Comcast Cable Communications, Inc. (“Comcast”) offers high-speed internet access through a modem connection to a subscriber’s TV cable (“Cable Modem Service”); and,

Whereas, in a ruling released on March 15, 2002, the Federal Communications Commission (FCC) declared that cable modem service did not fit within the definition of cable television service and therefore franchising authorities, such as the Metropolitan Government, cannot require cable TV franchises to include revenues from cable modem service as part of the revenue subject to the franchise fee of five percent (5%) gross revenue; and,

Whereas, the revenues from Comcast’s cable modem service generated approximately $465,000.00 in franchise fees to the Metropolitan Government for calendar year 2001; and,

Whereas, following the FCC’s ruling, Comcast notified the Metropolitan Government that it would cease paying
franchise fees on revenues from its cable modem service on April 1, 2002; and,

Whereas, several national organizations that represent cities and counties, including the National League of Cities, the United States Conference of Mayors, the National Association of Counties, and the National Association of Telecommunications Officers and Advisors (NATOA) have appealed the FCC’s decision and their appeal has been joined with earlier-filed appeals in the United States Court of Appeals for the Ninth Circuit; and,

Whereas, these organizations have retained Tillman L. Lay of the law firm of Miller, Canfield, Paddock & Stone, P.L.C., to represent them in that appeal; and,

Whereas, the Metropolitan Government has joined with 37 other cities, counties, and representative organizations to intervene in the appeal of the FCC’s ruling; and,

Whereas, the Intervenors have agreed to pool their resources and retain Tillman L. Lay as counsel for the appeal by making a contribution of from $5,000.00 to $10,000.00 to one of the appealing organizations; and,

Whereas, Section 8.607 of the Charter of the Metropolitan Government authorizes the Mayor, with the approval by resolution of the Metropolitan Council, to retain special counsel; and,

Whereas, Mr. Lay has extensive experience and is an expert in the area of telecommunications law; and,

Whereas, it is in the best interest of the Metropolitan Government to retain him as counsel for the appeal by making a financial contribution to NATOA.

Now, therefore, be it resolved by the Metropolitan Council of The Metropolitan Government of Nashville and Davidson County:

Section 1: That pursuant to Section 8.607 of the Charter of the Metropolitan Government, the Metropolitan Mayor is hereby authorized to employ as special counsel Tillman L. Lay of the law firm of Miller, Canfield, Paddock & Stone, P.L.C., to represent the Metropolitan Government in the appeal of the FCC’s declaratory decision on cable modem service in the United States Court of Appeals for the Ninth Circuit, styled as National League of Cities, et al. v. Federal Communications Commission, et al., No. 02-71425.

Section 2. That compensation of Five Thousand ($5,000.00) Dollars payable to NATOA is hereby approved, and said sum is appropriated out of the Judgment and Losses Fund.

Section 3: That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Jim Shulman, David Briley

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee
Introduced:	July 16, 2002
Adopted:	July 16, 2002
Approved:	July 17, 2002
By: