Mediacom Franchise ExtensionMEMORANDUM
TO:
FROM:
SUBJECT:
November 24, 2003
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Mediacom Franchise Extension
Cable Franchise Administrator Merrill Crawford is recommending City Council approval
to extend Mediacom's present franchise and associated leases to June 30, 2004, under
the same terms as previous extensions, and that a public hearing be held December 15,
2003.
At their June 16, 2003 meeting, the City Council approved an extension of the current
cable franchise with Mediacom to December 31, 2003.
Progress at the negotiating table has been frustratingly slow as the City awaited a
proposal from Mediacom regarding foundation elements of franchise renewal. In the
meantime, Mediacom has upgraded the bandwidth of their Dubuque system,
announced new services, and hired a new vice president for their Eastern
Iowa/Northern Illinois region. In a recent introductory visit, he apologized for his
company's delayed response and pledged more attentive and timely involvement in
future negotiations to reach terms of franchise renewal which will satisfy both parties.
Mediacem has now sent a sketchy written response with the promise of detailed design
information to follow. The City's negotiating team is prepared to analyze the detail when
it arrives and, if we find sufficient merit, to resume serious face-to-face negotiations with
Mediacom representatives. However, if we find Mediacom's latest response unworthy
of the City's continued investment exclusively in the informal renewal process, we are
ready to recommend other options. Among these would be preparations to invoke the
specific Formal Renewal Process provided in the 1984 Cable Act. Although not
commonly used, the Formal Renewal Process remains available to either party as a
means of resolving an impasse, even as we hope for substantial progress in continued
informal negotiations.
Meanwhile, as in the past, it is essential to the preservation of current franchise benefits
and the protection of the interests of the City and cable subscribers that the current
franchise extension not be permitted to expire by default on December 31.
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
MEMORANDUM
November 25, 2003
MEMO TO: Michael C. Van Milligen, City Manager
FROM: Merrill Grawford, 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 June 16, 2003 meeting, the City Council adopted Ordinance
No. 44-03 approving and authorizing the City Manager to execute an agreement
extending the current cable franchise with MCCIowa, LLC (Mediacom) to
December 31, 2003.
Progress at the negotiating table has been frustratingly slow as the City awaited a
proposal from Mediacom regarding foundation elements of franchise renewal. In the
meantime, Mediacom has upgraded the bandwidth of their Dubuque system,
announced new services, and hired a new vice president for their Eastem
Iowa/Northern Illinois region. In a recent introductory visit, he apologized for his
company's delayed response and pledged more attentive and timely involvement in
future negotiations to reach terms of franchise renewal which will satisfy both parties.
Mediacom has now sent a sketchy written response with the promise of detailed design
information to follow. The City's negotiating team is prepared to analyze the detail when
it arrives and, if we find sufficient merit, to resume serious face-to-face negotiations with
Mediacom representatives. However, if we find Mediacom's latest response unworthy
of the City's continued investment exclusively in the informal renewal process, we are
ready to recommend other options. Among these would be preparations to invoke the
specific Formal Renewal Process provided in the 1984 Cable Act. Although not
commonly used, the Formal Renewal Process remains available to either party as a
means of resolving an impasse, even as we hope for substantial progress in continued
informal negotiations. Either way, I would expect such determination and
recommendations to be made by mid-January.
Meanwhile, as in the past, it is essential to the preservation of current franchise benefits
and the protection of the interests of the City and cable subscribers that the current
franchise extension not be permitted to expire by default on December 31.
RECOMMENDED ACTION: The Recommended Action is that the City Council adopt
the proposed resolution scheduling a public hearing at their December 15, 2003 regular
meeting, to consider extending Mediacom's present franchise and associated leases to
June 30, 2004, under the same terms as under previous extensions.
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 b~,: Merrill Crawford. Cable Franchise Administrator, CJty Hall Annex 1300 Main St. Dubuque, IA 52001-4722
RESOLUTION NO, 489-03
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, 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,
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, 2004 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 1st day of Decem~~
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 December, 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 December 31, 2003, is
extended from that date until June 30, 2004 (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