Mediacom Franchise ExtensionMEMORANDUM
December 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 and side agreements
under the same terms currently in effect. 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
December 6, 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 and side agreements under the terms currently in effect.
BACKGROUND: At their Sept. 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
(Mediacom) 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 procedures set by the 1984 Cable Act.
At their December 2 meeting, the City Council adopted Resolution No. 635-02
and set a public hearing for December 16 to consider an additional temporary
franchise extension to March 31, 2003.
In 2001, the City retained the services of CBG Communications, Inc. to conduct
the Needs Ascertainment. In January and February of this year, 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. I 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 full report and recommendations of CBG Communi-
cations are expected shortly. While I am pleased with the methodology of
information gathering and analysis, and with preliminary results, it 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. These negotiations will not always be easy, particularly in light of the
re-energized deregulatory agenda of the Congress and the FCC, but 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 cannot be completed as hoped
by the December 31 expiration of the current temporary franchise extension. I
recommend that an additional extension be granted through March 31, 2003.
This would be accomplished, as before, by adoption of the proposed ordinance.
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 reached. This process understandably
generates questions from cable subscribers wondering what, if anything, is
happening. There is also a predictable but very incorrect perception that the
granting of a temporary franchise extension during this process is somehow an
accommodation or lopsided benefit to the cable operator. That is certainly not the
case; Mediacom has never asked for a temporary extension, and in fact prefers
that we would have negotiated a long-term renewal without having undertaken the
lengthy ascertainment process, and without having engaged the services of
nationally respected technology and legal advisors.
Unlike 1981, when the current cable franchise was adopted, the City cannot build
its negotiating stance upon a strong regulatory authority nor upon a strong public
posture. The 1984 Cable Act tilted the renewal playing field to favor the
incumbent franchisee. The strength of the City's position at the bargaining 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 help to 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. In practice, both the City and Mediacom have honored their
obligations under these extension agreements and we have averted unnecessary
turmoil that would arise from expiration before the question of renewal is
determined via the federally mandated process. It is in the interest of neither
party nor of the larger community to permit the current franchise to simply expire
by default.
RECOMMENDED ACTION: The Recommended Action is that, following the
December 16 public hearing, the City Council approve the proposed Ordinance
extending the current franchise agreement with Mediacom to March 31, 2003.
Prepared by: Merrill Crawford, Cable Franchise Administrator~ City Hall Annex, 1300 Main St, Dubuque~ IA 52001~4732
ORDINANCE NO. 99-02
AN ORDINANCE EXTENDING THE TERM OF THE EXISTING CABLE
FRANCHISE AGREEMENT AND HUB SITE LEASE OF MCCIOWA, L.L.C. TO
MARCH 31, 2003.
Whereas, MCCIowa, L.LC. (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 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 March 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 December, 2002.
Terra'nce M. Duggan, Mayor
Karen M. Chesterman, Deputy City Clerk
AGREEMENT EXTENDING
THE TERM OF THE CABLE FRANCHISE GRANTED TO
MCC IOWA LLC
This Agreement, made this day of December, 2002, by and between the City of
Dubuque, Iowa, an Iowa municipal corporation (hereinafter the "City"), and MCC Iowa LLC,
a Delaware corporation (hereinafter "Mediacom").
WITNESSETH:
WHEREAS, Mediacom currently holds a cable franchise (the "Franchise") from the
City subject to Ordinance No. 42-81 ("Dubuque Cable Services Franchise"), Resolution No.
110-87, Resolution No. 284-88, Resolution No. 349-94, Resolution No. 521-98, Resolution
No. 445-99, Resolution No. 108-00, and Resolution No. 275-01; and to Ordinance No. 69-93,
all of which documents, as any of them may lawfully be or may have been amended from time
to time, are collectively referred to as the "Franchise Documents"; and
WHEREAS, the parties are currently negotiating the renewal of the Franchise; and
WHEREAS, the parties have agreed that an extension .of the current Franchise, in order
to complete negotiations, and to take such other actions as may be appropriate to resolve
renewal issues, is to the benefit of both parties;
WHEREAS, Mediacom has consented to the terms of this extension;
NOW, THEREFORE, in consideration of the promises and undertakings herein, the receipt
and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
Section 1. The Franchise, which was scheduled to expire on December 31, 2002, is
extended from that date until March 31, 2003 (the "extension period").
Section 2. During the extension period, and any subsequent extension periods, if any,
all the terms and conditions set forth in the Franchise Documents shall continue in full force
and effect.
Section 3. This extension shall be without prejudice to any rights of either party under
the Cable Communications Policy Act of 1984, as amended. For example, and by way of
illustration and not limitation, any rights Mediacom may have already asserted properly under
47 U.S.C. § 546(a) need not be asserted again, and are not affected by the extension.
Similarly, the extension will not be read to give Mediacom additional rights or opportunities to
trigger the provisions of 47 U.S.C. § 546(a)-(g), or to require the City to reconduct hearings
or other actions properly taken in conjunction with any renewal proceedings under either or
both of the Franchises. No claim that either party may have against the other shall be released
or otherwise affected by this extension.
IN WITNESS WHEREOF, the parties hereto have set their respective hands and seals on the
day first above written.
CITY OF DUBUQUE, IOWA
By
Michael C. Van Milligen
City Manager
MCC IOWA LLC
By
12/12/2002
Mayor/City Council
City Hall
50 West 13m Street
Dubuque, IA 52001
Dear Mayor and City Council Members:
As Chairperson of the Cable Regulatory Commission over the last several years, I have worked closely
with Merrill Crawford regarding activities related to the Mediacom cable franchise renewal. Comments
listed below are my own personal observations. I cannot speak for fellow cable regulatory members
about the latest franchise extension request, even though I am quite positive that they mirror mine.
I would like to emphasize the complexity of the franchise renewal process today. I served on the
negotiating team and was co-walter of the existing cable franchise twenty years ago. It was a daunting
task then, and it is still a daunting task today. In fact, it may even be more complex today, because we
are operating in an imposed federal deregulatory environment. Twenty years ago we operated within a
very active pm-municipality environment, when it came to granting cable franchises. Today, we have to
work within the federally imposed conditions of renewing cable franchises. Some cities are succumbing
to the conditions of the cable companies dudng this process, because they see the cards stacked in the
cable industry's favor. We are not going that mute in Dubuque. In order to insure that consumer rights
of the citizens of Dubuque are considered in the next cable franchise, we are doing everything we can to
gather the pertinent information necessary to conduct an extensive, creative, and successful negotiation
on behalf of our citizenry.
I would personally like to thank the Mayor, City Council Members, and the City Manager for authorizing
Cravvford to conduct an extensive ascertainment survey and acquire the services of CBG
Communications. During their information gathering phase, CBG demonstrated both a thorough process
and excellent knowledge of cable television, especially in the areas of public, educational, and
governmental access. I have read some preliminary report data, and want to say that it is going to be
very useful to us. Their report will be a valuable resource during the negotiation process, along with the
contributions of the Miller and Van Eaton law firm. We feel that the City will be negoUating from a
position of strength, with the assistance of data provided by these industry professionals. I truly feel the
complexity issue necessitates acquiring the services of these technical and legal experts to assist us in
the process. I might add that this is an excellent use of franchise fee funds. The actual cost of the
negotiation process can be covered by franchise fees.
I feel it is in the best interest of the City to grant the latest franchise extension request. In my work with
Merrill Crawford over the years, I have come to know that his knowledge, thoroughness, and attention
to detail will pay us great dividends in the end. Our collective objective is to put the City in the best
possible position during the upcoming complicated renewal negotiation process. I am confident in the
process underway, and feel that the requested franchise renewal extension is necessary at this time.
Charlie Ellis
373 South Grandview
MEMORANDUM
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.
Mic ae 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: 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 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 MCClowa, LLC
(Mediacom) 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 EIon 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. I 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 Craw¢ord, Cable Franchise Administrator. City Hall Annex, 1300 Main St. Dubuque. tA 52001~4722
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 L.LC.
Whereas, MCCIowa, EEC. (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, 2002
Attest:
Jeanne Schneider, City Clerk
Terrance M. Duggan, Mayor