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Mediacom TV Cable Franchise ExtMEMORANDUM March 4, 2003 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Mediacom Franchise Extension Cable Franchise Administrator Merrill Crawford is recommending City Council authorization to grant an additional three month extension of the existing Mediacom Cable Franchise. While 1 know this will be the fourth extension of this franchise, I believe that now that we have the results of the detailed ascertainment study, we are in a position to negotiate that will create a chance for the best possible results. 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 March 4, 2003 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 Dec. 16, 2002 meeting, the City Council adopted Ordinance No. 99-02 approving and authorizing the City Manager to execute an agreement extending the current cable franchise with MCCIowa, LLC (Mediacom) to March 31, 2003. This was the fourth 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, The City's consultant, CBG Communications, Inc. has since reported their findings and recommendations from the detailed ascertainment study they conducted of Dubuque's future cable-related needs. This ascertainment and other resources will be used in the face-to-face negotiations with Mediacom as to the terms of the cable franchise renewal. The local team will be aided in these negotiations by Frederick EIIrod Ill of the Miller & Van Eaton Law Firm of Washington, D. C. As you know, just as we began to schedule those meetings, a compounded family emergency occurred which has drew me out of Dubuque for the last half of January and much of February. The month of March will also be difficult in this regard, but we are nevertheless attempting to schedule Dubuque visits by Mr. EIIrod and consultant Tom Robinson to brief City officials and the negotiating team, and to conduct face-to-face meetings with Mediacom. Because of this unanticipated interruption,, It is clear that the negotiation, the public hearing on the final recommendation, and the finalization or denial of a Mediacom franchise renewal cannot be completed as hoped by the March 31, 2003 expiration of the current temporary franchise extension. I recommend that an additional extension be granted through June 30, 2003. This would be accomplished, as before, by adoption of the proposed ordinance. On the positive side, I can report that Mediacom has been planning a significant upgrade of their Dubuque system and has indicated their willingness to include core design elements and features of that system among the items to be negotiated, rather than unilaterally completing their upgrade without consideration of our identified community needs. The preliminary indications are that Mediacom's technical approach to such an upgrade will be compatible with certain of CBC Communications' recommendations, or within reasonable range of negotiated additions or changes. There are other encouraging signs as well, regarding the likelihood of a lower-cost "broadcast basic" option becoming available in Dubuque. Of additional interest; there may now be some unique construction and coordination opportunities between a Mediacom upgrade, the City's own fiber expansion plans, and some new state networking and homeland security projects that are coming to light. We may find that the Mediacom franchise renewal talks, while not conforming to our original calendar, may in fact occur at an opportune time in context of long term benefits to the community. 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. Again, this most recent delay in conducting face-to-face negotiations in Dubuque is was not caused by any action or inaction on the part of Mediacom, but on my own inavailability for an extended period. RECOMMENDED ACTION: The Recommended Action is that, following the March 17 public hearing, the City Council City Council approve the proposed Ordinance extending the current franchise agreement with Mediacom to June 30, 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, City Hall Annex, 1300 Main St. Dubuque, IA 52001-4732 ORDINANCE NO. 19-03 AN ORDINANCE EXTENDING THE TERM OF THE EXISTING CABLE FRANCHISE AGREEMENT AND HUB SITE LEASE OF MCCIOWA, L.L.C. TO JUNE 30, 2003. 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 March 31, 2003; 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 June 30, 2003, 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 17th day of March, 2003. Terrance M. Duggan, Mayor Jeanne Scfineider, City Clerk AGREEMENT EXTENDING THE TERM OF THE CABLE FRANCHISE GRANTED TO MCC IOWA LLC This Agreement, made this day of March, 2003, 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 beneftt 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 March 31, 2003, is extended from that date until June 30, 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 2 MEMORANDUM February 27, 2003 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Mediacom Franchise Extension Cable Franchise Administrator Merrill Crawford is recommending that a public hearing be set for Mamh 17, 2003, to consider granting an additional three month extension of the existing Mediacom Cable Franchise. While I know this will be the fourth extension of this franchise, I believe that now that we have the results of the detailed ascertainment study, we are in a position to negotiate that will create a chance for the best possible results. I concur with the recommendation and respectfully request Mayor and City Council approval. Michae 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 February 27, 2003 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 Dec. 16, 2002 meeting, the City Council adopted Ordinance No. 99-02 approving and authorizing the City Manager to execute an agreement extending the current cable franchise with MCCIowa. LLC (Mediacom) to March 31,2003. This was the fourth 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. The City's consultant, CBG Communications, Inc. has since reported their findings and recommendations from the detailed ascertainment study they conducted of Dubuque's future cable-related needs. This ascertainment and other resources will be used in the face-to-face negotiations with Mediacom as to the terms of the cabte franchise renewal. The local team will be aided in these negotiations by Frederick EIIrod III of the Miller & Van Eaton Law Firm of Washington, D. C. As you know, a compounded family emergency which began January 14 has drawn me repeatedly out of Dubuque many days in January and February, and although we've made much progress, the month of March can also be expected to be difficult in this regard. Nevertheless, we are attempting to schedule Dubuque visits by Mr. EIIrod and consultant Tom Robinson to brief City officials and the negotiating team, and to begin face-to-face meetings with Mediacom. Because of this development, 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 March 31. 2003 expiration of the current temporary franchise extension. I recommend that an additional extension be granted through June 30, 2003. This would be accomplished, as before, by adoption of the proposed ordinance. On the positive side, I can report that Mediacom has been planning a significant upgrade of their Dubuque system and has indicated their willingness to include core design elements and features of that system among the items to be negotiated, rather than unilaterally complete the upgrade without consideration to our identified community needs. The preliminary indications are that Mediacom's technical approach to such an upgrade will be compatible with certain of CBG Communications' recommendations, or within reasonable range of negotiated additions or changes. Of additional interest; there may now be some unique construction and coordination opportunities between a Mediacom upgrade, the City's own fiber expansion plans, and some new state and homeland security projects that are coming to light. We may well find that the Mediacom renewal talks, while not conforming to our original calendar, may in fact occur at an opportune time in context of long term benefits to the community. 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 a Public Hearing be set for the March 17 City Council meeting and that the City Council approve the proposed Ordinance extending the current franchise agreement with Mediacom to June 30, 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 bs: Merrill Crawford. Cable Franchise Adminlstrator City Hall Annex 1300 Main St Dubuque, IA 52001-4732 RESOLUTION NO. -03 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.L.C. 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 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 Du Duque; and Whereas. the terms of the franchise and of the lease will expire March 31 2003.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 June 30. 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 3rd day of March. 2003. Attest: Jeanne Schneider. City Clerk Terrance M. Duggan, Mayor