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Mediacom Cable TV Franchise ExtMEMORANDUM May 23, 2003 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Mediacom Franchise Extension The City's negotiating team, consisting of Cable Franchise Administrator Merrill Crawford, Corporation Counsel Barry Lindahl, and Cable TV Regulatory Commission Chairman Charlie Ellis have been meeting with Mediacom representatives regarding the community's future cable-related needs and the terms of a renewed franchise. They are assisted in the face-to-face negotiating sessions by attorney Frederick EIIrod of the Miller & Van Eaton law firm of Washington, D.C., and by Tom Robinson and Dick Neilsen of CBC Communications, Inc. The Future Cable-Related Needs Ascertainment, conducted with extensive community input over the past eighteen months, has served as a solid foundation for the City's position, and has led to notable progress at these face-to-face meetings. Both the City and Mediacom have a strong interest in achieving a workable agreement that will result in immediate commencement of a system upgrade. Cable Franchise Administrator Merrill Crawford recommends that the City Council set a June 16 public hearing to consider granting an additional six-month extension of the existing Mediacom cable franchise and side agreements under the terms currently in effect to give time for these negotiations to be completed with the proper amount of public input of any proposed agreement prior to City Council approval. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment CC:Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Merrill Crawford, Cable Franchise Administrator CITY OF DUBUQUE, IOWA MEMORANDUM May 23, 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 six-month extension of the existing Mediacom cable franchise and side agreements under the terms currently in effect. BACKGROUND: At their Mamh 17, 2003 meeting, the City Council adopted Ordinance No. 19-03 approving and authorizing the City Manager to execute an agreement extending the current cable franchise with MCCIowa, LLC (Mediacom) to June 30, 2003. The City's negotiating team, consisting of Cable Franchise Administrator Merrill Crawford, Corporation Counsel Barry Lindahl, and Cable TV Regulatory Commission Chairman Charlie Ellis have been meeting with Mediacom representatives regarding the community's future cable-related needs, the cable operator's design options to upgrade its Dubuque system and introduce new services, and many related requirements and the terms of a renewed franchise. They are assisted in the face-to-face negotiating sessions by attorney Frederick EIIrod of the Miller & Van Eaton law firm of Washington, D.C., and by Tom Robinson and Dick Neilsen of CBG Communications, Inc. The Future Cable- Related Needs Ascertainment, conducted with extensive community input over the past eighteen months, has served as a solid foundation for the City's position, and has led to notable progress at these face-to-face meetings. Both the City and Mediacom have a strong interest in achieving a workable agreement that will result in immediate commencement of a system upgrade. Nevertheless, as we craft, test and debate major elements of a renewed cable franchise in accordance with the 1984 Cable Act, we must make sure that the detailed language of the agreement captures the obligations of both parties. ?nd passes legal muster. Also, we want to publish the details of the proposed agreement and enable the citizens of Dubuque to review, question and comment upon it prior to final City Council action. The Council's meeting schedule, Public Notice requirements, and the logistics of publishing the proposed agreement are such that final consideration of the proposed renewal agreement is not practicable by the June 16th City Council meeting. Nevertheless, the current franchise extension must not be permitted to expire by default on June 30th. RECOMMENDED ACTION: The Recommended Action is that, following a June 16 public hearing, the City Council approve the proposed Ordinance extending the current franchise agreement with Mediacom to December 31, 2003. Cc: Pauline Joyce, Administrative Services Manager Barry Lindahl, Corporation Counsel Tim O'Bden, Assistant City Attorney Cable TV Regulatory Commission Cable Community Teleprogramming Commission Prepared by: Merrill Crawford, Cable Franchise Administrator. City Hall Annex. 1200 Main St. Dubuque. IA 52001-4732 RESOLUTION NO. 188-03 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 EEC. 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 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 June 30, 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 December 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 June, 2003. ,43, ~ ~ . Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk AGREEMENT EXTENDING THE TERM OF THE CABLE FRANCHISE GRANTED TO MCC IOWA LLC This Agreement, made this day of June, 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 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 June 30, 2003, is extended from that date until December 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