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Mediacom Cable TV Franchise ExtMEMORANDUM December 8, 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 approval to extend Mediacom's present franchise and associated leases to June 30, 2004, under the same terms as previous extensions. 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. Mediacom has now sent a sketchy written response, lacking sufficient technical detail to enable our assessment of its potential value in meeting the community's cable-related needs. The City's negotiating team is preparing a status report and series of recommendations to the City Council to be made in January. Among these options would be specific preparations to invoke the 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 ~mpasse, even as we hope for substantial progress m 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. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Merdll Crawford, Cable Franchise Administrator CITY OF DUBUQUE, IOWA MEMORANDUM December 8, 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 s~x-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. As described in a separate memorandum, progress at the negotiating table has been frustratingly slow as the City awaited a proposal from Mediacom regarding foundation elements of franchise renewal. Inthe meantime, Mediacom has upgraded the bandwidth of their Dubuque system, announceo new services, and hired a new vice president for their Eastern Iowa/Northem 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, lacking sufficient technical detail to enable our assessment of its potential value in meeting the community's cable-related needs. The City's negotiating team is preparing a status report and series of recommendations to the City Council to be made in January. Among these options would be specific preparations to invoke the 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. RECOMMENDED ACTION: The Recommended Action is that the City Council adopt the proposed ordinance extending Mediacom's present franchise and associated leases to June 30, 2004, under the same terms as under prewous extensions and authorizing the City Manager to execute the Agreement. cc: Pauline Joyce, Administrative Services Manager Barry Lindahl, Corporation Counsel Tim O'Brien, Assistant City Attorney Cable TV Regulatory Commission Cable Community Teleprogramming Commission 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"). WlTNESSETH: 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 m 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"). 3. 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 Prepared by: Merrill Crawford, Cable Franchise Administrator, City Hall Annex 1300 Main St, Dubuque. IA 52001-4732 100 ORDINANCE NO. 100-03 AN ORDINANCE EXTENDING THE TERM OF THE EXISTING CABLE FRANCHISE AGREEMENT AND HUB SITE LEASE OF MCCIOWA, L.L.C. TO JUNE 30, 2004. 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 senes 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 i~ 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 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, 2004, 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 15th day of December, 2003. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk MEMORANDUM November 24, 2003 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Mediacom Franchise Extension Cable Franchise Administrator Merdll 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 heating 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. 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. 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 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 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 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. Mediacom has now sent a sketchy wdtten 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'Bden, Assistant City Attorney Cable TV Regulatory Commission Cable Community Teleprogramming Commission Prepared by: Merrill Crawford, Cable Franchise Administrator. City Hall Annex, 1300Main St. )ubuque. IA 52001-4722 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 EEC. 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. wa 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 ano 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 December, 2003. Terrance M. Duggan, Mayor Attest: Jeanne 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"). WlTNESSETH: WHEREAS, Mediacom currently holds a cable franchise (the "Franchise") from the City subject m 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 thek respective hands and seals on the day first above written. CITY OF DUBUQUE, IOWA By Michael C. Van Milligen City Manager MCC IOWA LLC 2