Loading...
HomeMy WebLinkAboutItem 06.l Date: Item No. RESOLUTION GRANTING CHARTER CABLE PARTNERS, LLC A FRANCHISE EXTENSION TO DECEMBER 31, 2017 Proposed Action Staff recommends adoption of the following motion: Move to adopt a resolution granting an extension of the current franchise agreement with Charter Cable Partners, LLC from December 31, 2016 to December 31, 2017. Overview Over the past several months the City of Lakeville provided Charter Cable Partners, LLC several dates on two separate occasions where staff would be available to meet to discuss drafting a new franchise agreement. Charter did not respond to either inquiry to schedule a meeting. However, in October Charter representatives did contact Brian Grogan, the city’s franchise attorney, and requested a meeting to discuss Charter’s new cable franchising policy within the State of Minnesota. Mr. Grogan met on October 10th with Tom Bordwell, Minnesota Director, Government Affairs; Gary Underwood, Jr., Regional Vice President, Government Affairs; and Paul Abbott, Vice President, Local Government Affairs & Franchising. Mr. Bordwell is located in Minnesota whereas Mr. Underwood is located in Ohio and Mr. Abbott is located Washington, DC. Together these individuals represent the key decision makers for Charter’s franchise renewal processes following the acquisition of Time Warner Cable. This new Charter administrative team will determine those franchise provisions which Charter will accept/reject in renewal negotiations. Also discussed were recent franchise renewals that Mr. Grogan has completed in St. Cloud and Rochester. While the Charter representatives acknowledge those recent franchise renewals, they emphasized that its new management team does not believe those cable franchises represent a good starting point for renewal negotiations. Rather, Charter would prefer to work off of their new template franchise. Mr. Grogan expressed concerns to Charter that having reviewed a recent version of Charter’s template, he did not believe it adequately addressed many municipal concerns and, in certain cases, represented significant steps backward from the existing cable franchises that Charter currently has in place. Mr. Grogan also discussed with Charter the opportunity to reach agreement on certain standard contract terms and provisions such as insurance, indemnification, grants of authority and enforcement and leaving the more unique franchise provisions regarding PEG access, franchise fee compensation, right-of-way control and other related issues for city by city December 5, 2016 discussions. Charter seemed interested in that approach and willing to work with cities to try to complete the outstanding franchise renewals as quickly as possible. Charter also indicated that it had not actually completed any recent franchise renewals in Minnesota using the new template since the merger with Time Warner. The delay in completing franchise renewals was due in part to establishing the company’s new internal structure and management team. Mr. Grogan emphasized during the meeting that while Charter is the same entity dealing with every renewal, each city is unique with individual managers, elected officials and philosophies regarding how best to complete franchise renewals and regulate the provision of cable services in the city. Moreover, many cities have existing competitors which may have recently renewed cable franchises therefore complicating the issues. Cities generally desire to maintain a level playing field regarding the regulations applicable to all cable operators within the city, but do not desire to undue recently completed renewal with other cable operators. As a result, a “one size fits all” Charter template most certainly will not work for many jurisdictions. Primary Issues to Consider With all this said, staff believes it is going to take several more months to negotiate a franchise renewal with Charter. Therefore, staff recommends a one year extension of the current franchise agreement to December 31, 2017. Financial Impact: No Budgeted: Y☐ N☐ Source: Related Documents: Envision Lakeville Community Value: Good Value for Public Services Report Completed by: Allyn Kuennen, Assistant City Administrator 1 CITY OF LAKEVILLE RESOLUTION NO. __ GRANTING CHARTER CABLE PARTNERS, LLC A FRANCHISE EXTENSION TO DECEMBER 31, 2017 WHEREAS, on or about October 26, 1998, the City of Lakeville, Minnesota (“City”) adopted a Cable Television Franchise Agreement (“Franchise”), which is currently held by Charter Cable Partners, LLC (“Charter”); and WHEREAS, the initial term of the Franchise expired on or about November 1, 2013; and WHEREAS, Charter has requested renewal of the Franchise; and WHEREAS, the City adopted Resolution No. 13-86 on October 7, 2013 extending the term of the Franchise until June 1, 2014; and WHEREAS, Charter executed said Resolution No. 13-86 and agreed to continue complying with the Franchise, as amended by the resolution; and WHEREAS, the City adopted Resolution No. 14-53 on June 16, 2014 extending the term of the Franchise until October 31, 2014; and WHEREAS, Charter executed said Resolution No. 14-53 and agreed to continue complying with the Franchise, as amended by the resolution; and WHEREAS, the City adopted Resolution No. 14-92 on October 20, 2014 extending the term of the Franchise until June 1, 2015; and WHEREAS, Charter executed said Resolution No. 14-92 and agreed to continue complying with the Franchise, as amended by the resolution; and WHEREAS, the City adopted Resolution No. 15-49 on May 4, 2015 extending the term of the Franchise until December 1, 2015; and WHEREAS, Charter executed said Resolution No. 15-49 and agreed to continue complying with the Franchise, as amended by the resolution; and WHEREAS, the City adopted Resolution No. 15-145 on November 16, 2015 extending the term of the Franchise until June 30, 2016; and 2 WHEREAS, Charter executed said Resolution No. 15-145 and agreed to continue complying with the Franchise, as amended by the resolution; and WHEREAS, the City adopted Resolution No. 16-81 on June 20, 2016 extending the term of the Franchise until December 31, 2016; and WHEREAS, Charter executed said Resolution No. 16-81 and agrees to continue complying with the Franchise, as amended by the resolution; and WHEREAS, the City and Charter are interested in continuing informal renewal negotiations, and desire to extend the current Franchise term from December 31, 2016 through and including December 31, 2017; and WHEREAS, the City and Charter desire to extend the term of the Franchise to facilitate renewal negotiations under state and federal law; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota: 1. The Franchise is hereby amended by extending the term of the Franchise from December 31, 2016 through and including December 31, 2017. 2. Except as specifically modified hereby, the Franchise shall remain in full force and effect. 3. The City and Charter 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 adopted by the Lakeville City Council; and (2) Charter’s acceptance of the resolution. ADOPTED by the City Council of Lakeville, Minnesota, this 5th day of December, 2016 CITY OF LAKEVILLE, MINNESOTA Mayor Matt Little Charlene Friedges, City Clerk 3 ACCEPTANCE Charter Cable Partners, LLC, hereby acknowledges the City of Lakeville Resolution No. 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: ___________________, 2016 Charter Cable Partners, LLC By: Its: Sworn to before me this day of , 2016 Notary Public