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5.f) Staff Report-Midcontinent Communications Franchise Extension � ;���� ���; ., SCANDIA Staff Renort Date of Meeting: October 16, 2012 To: City Council From: Kristina Handt, City Administrator Re: Midcontinent Communications Franchise Extension Agenda Item#: 5.fl Background: The Town of New Scandia approved a 15 year cable franchise agreement on December 2, 1997. The Cable Commission has been working on a renewal agreement since the beginning of this year. However,the agreement will not be completed prior to the expiration date so an extension is necessary. The draft franchise was received on September 12th, delivered to Commission members immediately and reviewed at the September 19th Cable Commission meeting. Some edits and additions are now being made to this first draft. It is not uncommon to extend the current franchise for a brief period of time when working a new one. Issue: Should an extension of the cable franchise agreement be temporarily extended to February 28, 2013? Proposal Details: Resolution 10-16-12-01 would extend the cable franchise agreement until February 28,2013. This resolution was reviewed and accepted by the Cable Commission. The extension allows the cable operator permission by the cities to continue its operations and ensures that the cities will continue to receive franchise fees. The PEG fee will also continue to be received by the Forest Lake Cable Commission. F�scal Impact: NA-cable franchise fees have to be used for public access programming. These funds cannot be used for other purposes in the general fund. Options: 1) Approve Resolution 10-16-12-01 2) Amend and then Approve Resolution 10-16-12-01 3) Take no action Recommendation: Option 1. CITY OF SCANDIA RESOLUTION NO. 10-16-12-01 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCANDIA, MINNESOTA GRANTING MIDCONTINENT COMMUNICATIONS A FRANCHISE EXTENSION TO FEBRUARY 28, 2013 WHEREAS, the City of Scandia Minnesota ("City") granted a Cable Television Franchise Agreement ("Franchise") to US Cable of Coastal-Texas, L.P., to own and operate a cable television system in the City; and WHEREAS, the Franchise is currently held by Midcontinent Communications ("Midcontinent"); and WHEREAS,the initial term of the Franchise expires on or about December 2, 2012; and WHEREAS, both the City and Midcontinent desire to extend the term of the Franchise to facilitate renewal negotiations under state and federal law. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Scandia, Minnesota hereby resolves as follows: a) The Franchise is hereby amended by extending the term of the Franchise from December 2, 2012 through and including February 28, 2013. b) Except as specifically modified hereby, the Franchise shall remain in full force and effect. c) The City and Midcontinent hereby agree that neither waives any rights either may have under the Franchise or applicable law. FURTHER, BE IT RESOLVED that 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 Scandia and(2) Midcontinent's acceptance of this Resolution. Adopted by the Scandia City Council this 16th day of October,2012. Randall Simonson, Mayor ATTEST: Kristina Handt, Administrator/Clerk