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Home My WebLink About5G - Cable TV Franchise Extensions O� PRIRP h U 4646 Dakota Street SE Prior Lake,MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: November 10, 2014 AGENDA#: 5G PREPARED BY: Frank Boyles, City Manager PRESENTED BY: Frank Boyles, City Manager AGENDA ITEM: CONSIDER APPROVAL OF RESOLUTIONS EXTENDING THE CABLE TELEVISION FRANCHISE AGREEMENTS WITH INTEGRA TELECOM AND MEDIACOM UNTIL NEW FRANCHISE AGREEMENTS ARE APPROVED DISCUSSION: Introduction The purpose of this agenda item is to request that the City Council extend the existing cable television franchises with Integra Telecom and Mediacom until new agreements are negotiated and agreed to. History The City of Prior Lake has issued franchises to two cable television companies over the years. The most long standing agreement was with Mediacom. The Mediacom agreement was entered into in 1999 and is a 15 year agreement. This agreement expires in November, 2014. In 2009, the City entered into a five year agreement with Integra Telecom which also expires in November 2014. Current Circumstances Cable television is a highly regulated field and becoming more so. For example, some years ago cities could regulate cable costs through the franchise agreement. Today they are prohibited from doing so. Nonetheless, with the help of the city attorney's office, we have examined franchise agreements prepared by various communities in the last few years. After examining those documents and considering concerns we have heard about cable TV we have put together a draft agreement and sent it to both Integra Telecom and Mediacom representatives to begin discussions. Both cable companies have their legal departments reviewing the proposed agreements. Once that has been completed it is our intent to begin the negotiation process with each. In the interim, we wish to extend the existing agreements until new agreements are executed so that all terms and conditions continue as is. Phone 952.447.9800/Fax 952.447.4245/www.cityofpriorlake.com Conclusion The City Council should extend the existing franchise agreements to assure the documents continue in force until new ones take their place. ISSUES: This is the process recommended by the city attorney's office. We have prepared a timeline for franchise renewal as follows: • November 10, 2014—Ask City Council to extend existing franchises • November 24, 2014 — conduct a public hearing as required by law after notices are placed for two consecutive weeks in the Prior Lake American • December 22, 2014 — Adopt both franchise agreements and a revised franchise ordinance to dove tail with the new agreements. Whether we can meet this schedule will be determined by our ability to reach agreements with the two cable providers. FINANCIAL As part of the agreement, the franchise fees and public access, Educational IMPACT: and Government fees (PEG) will be established. A process for resolving complaints is also to be included which we hope will expedite resolution both for cost saving and improved customer service. ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve resolutions extending existing cable television franchise agreements until new documents take their place. 2. Take no action and provide direction to the staff. RECOMMENDED Alternative 1 MOTION: O� PRi0r U tr1 4646 Dakota Street SE ` -rvm—sols' Prior Lake,MN 55372 RESOLUTION 14-xxx A RESOLUTION AUTHORIZING THE EXTENSION OF THE CABLE TELEVISION FRANCHISE AGREEMENT FROM ITS TERMINATION DATE UNTIL A NEW AGREEMENT TAKING ITS PLACE IS APPROVED AND EXECUTED BY BOTH PARTIES Motion By: Second By: WHEREAS, the City of Prior Lake has entered into a cable television franchise agreement with Integra Telecom dated ("Agreement") pursuant to state law and federal regulations, and WHEREAS, the Agreement expires in November 2014, and WHEREAS, the City Council of the City of Prior Lake desires to enter into a new cable television franchise agreement with Integra Telecom, and WHEREAS, for that purpose, the City and Integra Telecom are discussing the terms and conditions of the new franchise agreement and desire to keep all existing terms and conditions in force until a new agreement is prepared and executed by both parties. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Agreement is hereby amended by extending the term until a new agreement is negotiated and executed by both parties or January 31, 2015,whichever occurs earlier. 3. Except as specifically modified herein, the Agreement shall remain in full force and effect. 4. The City and Integra Telecom hereby agree that neither waives any rights either may have under the Agreement or applicable law. 5. This Resolution shall become effective upon the occurrence of both of the following conditions: (1) The Resolution being passed and adopted by the City Council of the City of Prior Lake; and (2) Integra Telecom's acceptance of this Resolution. PASSED AND ADOPTED THIS 10th DAY OF NOVEMBER 2014. VOTE Hedberg Keeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager ACCEPTANCE Integra Telecom hereby acknowledges the City of Prior Lake Resolution No. and hereby accepts the terms, provisions and recitals of the Resolution and agrees to be bound by the Agreement to the extent consistent with applicable laws. INTEGRA TELECOM DATED By: Its: 2 O� PR12 H U tri 4646 Dakota Street SE `�IMvssO�A Prior Lake,MN 55372 RESOLUTION 14-xxx A RESOLUTION AUTHORIZING THE EXTENSION OF THE CABLE TELEVISION FRANCHISE AGREEMENT FROM ITS TERMINATION DATE UNTIL A NEW AGREEMENT TAKING ITS PLACE IS APPROVED AND EXECUTED BY BOTH PARTIES Motion By: Second By: WHEREAS, the City of Prior Lake has entered into a cable television franchise agreement with Mediacom dated October 15, 1999 ("Agreement") pursuant to state law and federal regulations, and WHEREAS, the Agreement expires in November 2014, and WHEREAS, the City Council of the City of Prior Lake desires to enter into a new cable television franchise agreement with Mediacom, and WHEREAS, for that purpose, the City and Mediacom are discussing the terms and conditions of the new franchise agreement and desire to keep all existing terms and conditions in force until a new agreement is prepared and executed by both parties. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Agreement is hereby amended by extending the term until a new agreement is negotiated and executed by both parties or January 31, 2015, whichever occurs earlier. 3. Except as specifically modified herein, the Agreement shall remain in full force and effect. 4. The City and Mediacom hereby agree that neither waives any rights either may have under the Agreement or applicable law. 5. This Resolution shall become effective upon the occurrence of both of the following conditions: (1) The Resolution being passed and adopted by the City Council of the City of Prior Lake; and (2) Mediacom's acceptance of this Resolution. PASSED AND ADOPTED THIS 10th DAY OF NOVEMBER 2014. VOTE Hedberg Keeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles,City Manager ACCEPTANCE Mediacom hereby acknowledges the City of Prior Lake Resolution No. and hereby accepts the terms, provisions and recitals of the Resolution and agrees to be bound by the Agreement to the extent consistent with applicable laws. MEDIACOM DATED By: Its: 2