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HomeMy WebLinkAboutItem 06.g Date: Item No. RESOLUTION GRANTING CHARTER CABLE PARTNERS, LLC A FRANCHISE EXTENSION TO DECEMBER 31, 2021 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, 2020 to December 31, 2021. Overview In 2017 the City contacted Charter Cable Partners, LLC to determine their interest in pursuing a franchise renewal under substantially the same terms as the Frontier franchise that was adopted by the City in 2016. The City indicated to Charter that if they were interested in proceeding with the renewal process, based on the Frontier franchise terms, the City requests Charter to provide a mark-up of the Frontier franchise in order to restart the informal franchise renewal process. Charter indicated they were not interested in using the Frontier franchise as a model and would contact the City in the future after they had an opportunity to finalize franchises in other cities in Minnesota that were similar to Lakeville. In 2018 the cities of Apple Valley, Rosemount and Farmington adopted new franchise agreements with Charter. Staff reached out to Charter earlier this year and they indicated they wanted to extend the current franchise for another year. It is anticipated that Charter will renew their efforts in 2021 to develop an updated franchise agreement with Lakeville. Primary Issues to Consider Staff recommends a one-year extension of the current franchise agreement to December 31, 2021 to provide additional time needed for a mutually acceptable franchise renewal to be developed. 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 November 16, 2019 1 CITY OF LAKEVILLE RESOLUTION NO. GRANTING SPECTRUM MID-AMERICA, LLC (f.k.a. CHARTER CABLE PARTNERS, LLC) A FRANCHISE EXTENSION TO DECEMBER 31, 2021 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 Spectrum Mid-America, 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 WHEREAS, Charter executed said Resolution No. 15-145 and agreed to continue complying with the Franchise, as amended by the Resolution; and 2 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 agreed to continue complying with the Franchise, as amended by the Resolution; and WHEREAS, the City adopted Resolution No. 16-169 on December 5, 2016 extending the term of the Franchise until December 31, 2017; and WHEREAS, Charter executed said Resolution No. 16-169 and agreed to continue complying with the Franchise, as amended by the Resolution; and WHEREAS, the City adopted Resolution No. 17-199 on December 18, 2017 extending the term of the Franchise until December 31, 2018; and WHEREAS, Charter executed said Resolution No. 17-199 and agreed to continue complying with the Franchise, as amended by the Resolution; and WHEREAS, the City adopted Resolution No. 18-139 on December 18, 2018 extending the term of the Franchise until December 31, 2019; and WHEREAS, Charter executed said Resolution No. 18-139 and agreed to continue complying with the Franchise, as amended by the Resolution; and WHEREAS, Charter executed Resolution No. 19-142 and agreed 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, 2020 through and including December 31, 2021; and WHEREAS, the City and Charter 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 Lakeville, Minnesota: 1. The Franchise is hereby amended by extending the term of the Franchise from January 1, 2021 through the date on which Charter’s Franchise is either renewed or until and including December 31, 2021. 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 3 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 16th day of November 2020. CITY OF LAKEVILLE, MINNESOTA By: Douglas P. Anderson, Mayor ATTEST: Char Fridges, City Clerk 4 ACCEPTANCE Spectrum Mid-America, LLC (f.n.a. 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: ___________________, 2020 Spectrum Mid-America, LLC By: Its: