Cable - Mediacom Franchise ExtMEMORANDUM
August26,2002
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Mediacom Franchise Extension
Cable Franchise Administrator Merrill Crawford recommends granting an additional
three-month extension of the existing Mediacom cable franchise under the same terms
as the franchise extension currently in effect, and that a public hearing be set for
September 16, 2002. This extension would permit a detailed ascertainment of the
community's futuro cable-rolated needs and negotiation of the franchise ronewal terms
with Mediacom in accordance with the procedure set by the 1984 Cable Act.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
_____________________
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Merrill Crawford, Cable Franchise Administrator
CITY OF DUBUQUE, IOWA
MEMORANDUM
August 21,2002
MEMO TO: Michael C. Van Milligen, City Manager
FROM: Merrill Crawford, Cable Franchise Administrator
SUBJECT: Mediacom Franchise Extension
INTRODUCTION: The purpose of this memorandum is to recommend that the
City Council grant an additional three-month extension of the existing Mediacom
cable franchise under the same terms as the franchise extension currently in
effect.
BACKGROUND: At their June 17, 2002 meeting, the City Council adopted
Ordinance No. 50-02 approving and authorizing the City Manager to execute an
agreement extending the current cable franchise with MCCIowa, LLC
(Mediacom) to September 30, 2002. This was the second temporary extension
granted to permit a detailed ascertainment of the community's future cable-
related needs and negotiate franchise renewal terms with Mediacom in
accordance with the procedure set by the 1984 Cable Act.
Future Cable-Related Needs Ascertainment
The City retained the services of CBG Communications, Inc. to conduct the
needs ascertainment. In January and February, Tom Robinson of CBG
Communications and Dr. Connie Book of Elon University, assisted by City staff,
conducted a series of workshops, focus groups, surveys, interviews and firsthand
inspections. They have also gathered and refined data by telephone and e-mail,
and are forming recommendations supported by this information. They are in
regular contact with our Washington attorneys and with myself regarding issues
and further questions indicated by the research.
Though cooperative at the local level, Mediacom has taken more time than
expected to respond to a series of technical questions posed by CBG
Communications. This is due, in part, to the heavy workload placed upon local
engineering staff in recent months, and in part to the review of each information
request or response by Mediacom managers and legal counsel. The last
significant package of data, regarding signal leakage measurements and the
Institutional cable network, was supplied last week.
Tom Robinson of CBG Communications indicates that an initial draft of their
report and recomendations will be delivered shortly to the Miller and Van Eaton
law firm, who are assisting us with the renewal process and negotiations.
With this information, we should be ready to form our negotiating agenda and
positions and prepare for first-person negotiations with Mediacom
representatives.
There will surely be areas or issues upon which the City and Mediacom can
reach quick agreement, and others (particularly as regards capital expenditures
or changing legal foundations) where the process could become complex and
tedious. We nevertheless expect to reach a tentative final negotiated product
that we can recommend to the City Council. At that point, I will recommend that
we publish the details and invite further citizen comment, even though a public
referendum is no longer part of the cable franchise renewal process set by the
Cable Act.
It is clear that the latter stages of this renewal process will not be completed by
the September 30 expiration of the current temporary franchise extension, and I
am recommending that an additional extension be granted through December
31, 2002.
Multiple franchise extensions are not unusual in a franchise renewal process,
particularly where the franchise authority takes its needs ascertainment
responsibility seriously and works to get the best possible result within a
changing and sometimes unfavorable legal landscape. Given the quality and
strength of our existing franchise and side agreements, even after federal
preemptions, we do not stand to lose any significant existing or potential benefits
by granting an additional short-term extension. Mediacom has indicated it would
agree to the extension of the franchise and side agreements on the same terms
as the current extension. In practice, both parties have honored their obligations
under these extension agreements and we have averted unnecessary turmoil
that would arise from the expiration of the current franchise before the question
of renewal is determined.
RECOMMENDED ACTION: The Recommended Action is that the City Council
adopt the proposed proposed Resolution setting a public hearing for September
16, 2002, and that the proposed Ordinance be adopted following that public
hearing.
Cc: Pauline Joyce, Administrative Services Manager
Barry Lindahl, Corporation Counsel
Tim O'Brien, Assistant City Attorney
Cable TV Regulatory Commission
Cable Community Teleprogramming Commission
RESOLUTION NO. 461-02
A RESOLUTION OF THE CITY'S INTENT TO GRANT A SHORT-TERM
EXTENSION OF AN EXISTING CABLE SERVICES FRANCHISE AND AN
EXISTING HUB SITE LEASE TO MCClOWA L.L.C.
Whereas, MCClowa, L.L.C. (Mediacom) is the current holder of a cable services
franchise, embodied in Ordinance No. 42-81, as modified by a series of waivers and side
agreements, and acquired from TCl of Iowa, Inc. via a transfer approved by the Dubuque
City Council on June 18, 2001; and
Whereas, one of the side agreements is a lease to Mediacom to build and maintain
a network hub on City-owned property located at 1585 West Third Street in Dubuque; and
Whereas, the terms of the franchise and of the lease will expire September 30,
2002; and
Whereas, representatives of the City of Dubuque and of Mediacom have entered
into good faith negotiation of terms and conditions for the renewal of the franchise and the
lease.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City of Dubuque intends to extend the term of the cable services
franchise and the term of the lease to December 31, 2002 under the same terms and
conditions as currently in effect; and
Section 2. That the City Clerk is hereby authorized and directed to cause notices to
be published of the proposed extension in the manner prescribed by law.
Passed, approved and adopted this 3rd day of September, 2002
________________________
Terrance M. Duggan, Mayor
Attest:
___________________________
Jeanne Schneider, City Clerk
ORDINANCE NO. -02
AN ORDINANCE EXTENDING THE TERM OF THE EXISTING CABLE
FRANCHISE AGREEMENT AND HUB SITE LEASE OF MCCIOWA, L.L.C. TO
DECEMBER 31, 2002.
Whereas, MCClowa, LL.C. (Mediacom) is the current holder of a cable services
franchise, embodied in Ordinance No. 42-81, as modified by a series of waivers and
side agreements, and acquired from TCl of Iowa, Inc. via a transfer approved by the
Dubuque City Council on June 18, 2001; and
Whereas, one of the side agreements is a lease to Mediacom to build and
maintain a network hub on City-owned property located at 1585 West Third Street in
Dubuque; and
Whereas, the terms of the franchise and of the lease will expire September 30,
2002; and
Whereas, representatives of the City of Dubuque and of Mediacom have entered
into good faith negotiation of terms and conditions for the renewal of the franchise and
the lease.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The term of the cable services franchise and the term of the lease are
hereby extended to December 31, 2002, with all the rights, privileges and
responsibilities appertaining thereunto; and
Section 2. The City Manager is hereby authorized to sign and administer the
extension agreement on behalf of the City of Dubuque.
Passed, approved and adopted this 16th day of September, 2002.
_________________________
Terrance M. Duggan, Mayor
Attest:
________________________
Jeanne Schneider, City Clerk