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5.e) Staff Report-Midcontinent Communications Franchise Extension � c � ��� ����� �. � SCANDIA Staff RevoM Date of Meeting: February 19, 2013 To: City Council From: Kristina Handt, City Administrator Re: Midcontinent Communications Franchise Extension Agenda Item#: S.e) 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 last year. . On October 16, 2012 the Council approved an extension of the current agreement until February 28, 2013. However, the agreement has still not been completed prior to the expiration date so an additional 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. Since that time the Cable Commission and Midcontinent have continued to negotiate. It is not uncommon to extend the current franchise for a period of time when working a new one. Issue: Should an extension of the cable franchise agreement be temporarily extended to June 30, 2013? Proposal Details: Resolution 02-19-13-01 would extend the cable franchise agreement until June 30,2013. 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. T'he PEG fee will also continue to be received by the Forest Lake Cable Commission. Fiscal 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 02-19-13-01 2) Amend and then Approve Resolution 02-19-13-01 3) Take no action Recommendation: Option 1. CITY OF SCANDIA RESOLUTION NO. 02-19-13-01 RESOLUTION GRANTING MIDCONTINENT COMMUNICATIONS A FRANCHISE EXTENSION TO JLTNE 30,2013 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 ("MidcontinenY'); and WHEREAS, the initial term of the Franchise expired on or about December 2, 2012; and WHEREAS,the City adopted Resolution No. 10-16-12-01 on October 16, 2012 extending the term of the Franchise until February 28, 2013; and WHEREAS, Midcontinent executed said Resolution No. 10-16-12-01 and agreed to continue complying with the Franchise, as amended by the Resolution; and WHEREAS, the City and Midcontinent are interested in continuing informal renewal negotiations and desire to extend the current Franchise term from March 1, 2013 through June 30, 2013; 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: L The Franchise is hereby amended by extending the term of the Franchise from March l, 2012 through and including June 30, 2013. 2. Except as specifically modified hereby, the Franchise shall remain in full force and effect. 3. The City and Midcontinent hereby agree that neither waives any rights either may have under the Franchise or applicable law. 4. 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. 1 2264o04vt Adopted by the Scandia City Council this 19th day of February, 2013. Randall Simonson, Mayor ATTEST: Kristina Handt, Administrator/Clerk 2 2264004v1 ACCEPTANCE Midcontinent Communications, hereby acknowledges the City of Scandia, Minnesota Resolution No. 02-19-13-01 and hereby accepts the terms, provisions and recitals of the Resolution and agrees to be bound by the Franchise to the extent consistent with applicable laws. DATED: , 2013 MIDCONTINENT COMMUNICATIONS By: Its: Sworn to before me this day of , 2013. Notary Public 3 2264004v1