HomeMy WebLinkAbout05(B) - Ordinance Amendment to Extend the Cable Television Franchise with Nuvera Report
ITEM: 5B
CITY COUNCIL AGENDA REPORT
MEETING DATE: March 10, 2026
PREPARED BY: Jason Wedel, City Manager
PRESENTED BY: Jason Wedel
AGENDA ITEM: Ordinance Amendment to Extend the Cable Television Franchise
with Nuvera
RECOMMENDED ACTION:
Approve the adoption of an ordinance amendment to extend the cable television franchise with
Nuvera.
BACKGROUND:
The City of Prior Lake has an ordinance, Chapter 4, Article VII, which outlines the requirements
for cable television providers to enter into a franchise agreement with the City. The City currently
has two cable franchise agreements; one with Nuvera and the other is with Mediacom. We
anticipate a third agreement later this year that will go before the City Council for consideration to
grant a new franchise agreement to Comcast.
The current agreement with Nuvera was last extended on December 10, 2024 for one year and
is set to expire on April 1, 2026.
Current State franchise laws date back to the 1980's and only address cable television. Bills have
been introduced in recent years at the State legislature to amend those laws to include broad
band/internet service providers as they are also significant users of public rights of way for their
infrastructure. It was anticipated that those laws would be updated by now, but unfortunately the
State has yet to enact any changes. There is not an expectation that change is forthcoming in the
near future so it is necessary to proceed with another extension. The proposed extension time
frame is for 5 years.
FINANCIAL IMPACT:
The terms of the agreements will remain the same and state that the cable providers pay quarterly
to the City a Franchise Fee in an amount equal to 5% of its quarterly gross revenues. Revenue
from Nuvera's franchise fees totaled $50,564.18 in 2025. The fees received by the City from
franchise fees continues to decrease each year as resident usage of cable services continues to
decline.
ALTERNATIVES:
1. Motion and second as part of the consent agenda to approve the adoption of an ordinance
amendment to extend the cable television franchise with Nuvera.
2. Motion and second to remove this item from the consent agenda for separate discussion.
ATTACHMENTS:
1. Ordinance Amendment to Extend the Cable Television Franchise with Nuvera.
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
CITY OF PRIOR LAKE
ORDINANCE NO. _____
ORDINANCE AMENDING AND EXTENDING THE CABLE TELEVISION
FRANCHISE
WHEREAS, Nuvera Communications, Inc. (“Grantee”) holds a Cable Communications
Franchise Ordinance 115-08 (“Franchise”) for the construction and operation of a cable
communications system in the City of Prior Lake, MN (“Grantor”); and
WHEREAS, Grantor and Grantee have mutually agreed to amend and extend the term of the
Franchise by adopting this Ordinance.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Prior Lake as
follows:
1. The term of the Franchise is amended to expire on March 23, 2031.
2. Subject to applicable law, all other terms and conditions of the Franchise shall remain in
full force and effect. Neither party waives any rights it may have pursuant to applicable law, and
each party shall retain all rights it may have regarding the renewal of the cable franchise
thereunder including, but not limited to 47 USC §546.
3. This Ordinance shall be effective upon its passage and publication in accordance with
applicable law and its written acceptance by Grantee.
Adopted by the City of ______________ City Council on \[date\]______________, 2026.
_________________________
Mayor
ATTEST:
____________________
City Manager
GRANTEE ACCEPTANCE
The Ordinance is accepted, and Grantee agrees to be bound by its terms and conditions.
NUVERA COMMUNICATIONS, INC.
________________________________
By: Kathy Lund
Its: VP of Technical Services
Dated: __________________________