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Cable, Mediacom Franchise Ext.MEMORANDUM September 9, 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. This extension would permit a detailed ascertainment of the community's future cable-related needs and negotiation of the franchise renewal 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 September 4, 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 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 EIon 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. Tom Robinson of CBG Communications indicates that an initial draft of their report and recommendations 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. The City Council has set a public hearing for its September 16, 2002 regular meeting to receive comments on this proposed extension. Multiple short-term 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 Ordinance authorizing the City Manager to sign and administer the temporary franchise extension agreement. Cc: Pauline Joyce, Administrative Services Manager Barry Lindahl, Corporation Counsel Tim O'Brien, Assistant City Attorney Cable TV Regulatory Commission Cable Community Teleprogramming Commission ORDINANCE NO. 78-02 AN ORDINANCE EXTENDING THE TERM OF THE EXISTING CABLE FRANCHISE AGREEMENT AND HUB SITE LEASE OF MCCIOWA, L:LC. TO DECEMBER 31, 2002. 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 TCI of ~owa, 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 A ttest: Jeanne Schneider, City Clerk MEMORANDUM August 26, 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 future cable-related needs and negotiation of the franchise renewal 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 MCClowa, 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 recommendations 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 1 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 Attomey Cable TV Regulatory Commission Cable Community Teleprogramming Commission RESOLUTION NO. -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 MCCIOWA LL.C. Whereas, MCCIowa, 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 TCI 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 cond tions for the renewal of the franchise and the lease. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITM OF DUBUQUE, IQWA: 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 Attest: Jeanne Schneider, City Clerk Terrance M. Duggan, Mayor ORDINANCE NO. -02 AN ORDINANCE EXTENDING THE TERM OF THE EXISTING CABLE FRANCHISE AGREEMENT AND HUB SITE LEASE OF MCCIOWA, EEC. TO DECEMBER 31, 2002. Whereas, MCCIowa, LLC. (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 TCI 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. Attest: Jeanne Schneider, City Clerk Terrance M. Duggan, Mayor