Cable Mediacom Franchise ExtensMEMORANDUM
November 25, 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
December 16, 2002. This extension would allow time to hold negotiations, the public
hearing, and finalization of a Mediacom franchise renewal, if the decision is made to
renew.
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
November 22, 2002
MEMO TO: Michael C. Van Milligen, City Manager
FROM: Merrill Crawford, Cable Franchise Administrator
SUBJECT: Mediacem Franchise Extension
INTRODUCTION: The purpose of this memorandum is to recommend that the
City Council grant an additional three-month extension of the existing Mediacem
cable franchise under the same terms currently in effect.
BACKGROUND: At their September 16, 2002 meeting, the City Council
adopted Ordinance No. 78-02 approving and authorizing the City Manager to
execute an agreement extending the current cable franchise with MCCIowa, LLC
(Mediacem) to December 31, 2002. This was the third temporary extension
granted to permit completion of our consultant's detailed ascertainment of the
community's future cable-related needs and negotiation of franchise renewal
terms with Mediacom in accordance with the procedure set by the 1984 Cable
Act.
The City retained the services of CBG Communications, Inc. to conduct the
Needs Ascertainment. In January and February, Tom Robinson of CBG
Communications, Inc. and Dr. Connie Book of Elon University, assisted by City
staff, conducted a series of workshops, focus groups, surveys, interviews and
firsthand inspections. They also gathered and refined data by telephone and e-
mail, and have now forwarded draft results and narratives for my preliminary
review. 1 have advised them of minor errors in the narratives (such as some City
facility and department names), and of recent changes in the community (such
as City, Mediacom and Qwest upgrades, America's River construction progress
and the elimination of KDUB-TV's local news operation). With these corrections
and updated information, the final report and recommendations of CBG
Communications are expected shortly. While I am pleased with the result, and
with the strength of the methodology of information gathering and analysis, the
process has obviously taken longer than we had envisioned.
With the CBG Needs Ascertainment and recommendations, and aided by the
Miller & Van Eaton law firm, we can finally begin face-to-face negotiations with
Mediacom. While these negotiations will not always be easy, particularly in light
of the re-energized deregulatory agenda of the Congress and the FCC, we do
expect to reach tentative agreement on terms of renewal 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 negotiation, the public hearing, and the finalization (or the
ultimate denial) of a Mediacom franchise renewal can not be completed as hoped
by the December 31 expiration of the current temporary franchise extension. I am
recommending that an additional extension be granted through March 31, 2003.
This would be accomplished, as before, by ordinance following a public hearing.
During such a period of detailed Needs Ascertainment, followed by face-to-face
negotiations, few substantive details are announced publicly until certain
research conclusions or tentative agreements are achieved. Over time, this
process understandably generates questions from Dubuque cable subscribers
wondering what, if anything, is happening.
Unlike 1981, when the current cable franchise was adopted, the City can not
build its negotiating stance upon a strong regulatory authority. The 1984 Cable
Act tilted the renewal playing field to favor the incumbent franchisee. The
strength of the City's position at the table will arise this time from the care and
expertise invested in the Needs Ascertainment over these past months and from
up-to-the minute legal guidance we receive from Miller & Van Eaton. These
same resources should help avoid an unnecessary trip to the courtroom should
negotiations become difficult, but should also buttress our case in the unlikely
event legal action is unavoidable.
Multiple short-term franchise extensions are not unusual in a cable franchise
renewal process, particularly where the franchise authority takes its Needs
Ascertainment responsibility seriously and works to reach the best possible result
within a changing and sometimes unfavorable legislative landscape. Mediacom
has indicated it would agree to the temporary extension of the franchise and side
agreements on the same terms as before. In practice, both parties have honored
their obligations under these extension agreements and we have averted
unnecessary turmoil that would arise from automatic expiration via the calendar
before the question of renewal is determined. It is in the interest of neither party
nor of the larger community to permit the current franchise to expire by default.
RECOMMENDED ACTION: The Recommended Action is that the City Council
set a public hearing for December 16, 2002 to consider a proposed Ordinance
extending the current cable franchise agreement with Mediacom to March 31,
2003.
Cc: Pauline Joyce, Administrative Services Manager
Barry Lindahl, Corporation Counsel
Tim O'Brien, Assistant City Attorney
Cable TV Regulatory Commission
Cable Community Teleprogramming Commission
Prepared by: Merrill Crawford, Cable Franchise Administrator, Cit,¥ Hall Annex. 1200 Main St. Dubuque, IA 52001-4722
RESOLUTION NO. 635-02
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 L.LC.
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 December 31,2002;
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 March 31, 2003 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 2nd day of December.,
Terrance M Duggan, Mayor
Attest: Jeanne Schneider, City Clerk