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RESOLUTION AUTHORIZING EXTENSION OF CURRENT CABLE FRANCHISE AGREEMENT WITH CHARTER COMMUNICATIONS THROUGH JULY 1, 2017.
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CITY PROPOSAL:
WHEREAS, on May 8, 2006, the city adopted a cable franchise to, and agreement with, CC VIII Operating, LLC, d/b/a Charter Communications (“Charter”), pursuant to city Ordinance No. 9775, File No. 06-013-O, titled “AN ORDINANCE GRANTING A FRANCHISE TO CC VIII OPERATING, LLC, D/B/A CHARTER COMMUNICATIONS, ITS SUCCESSORS, AND ASSIGNS, TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE SYSTEM IN THE CITY OF DULUTH SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEMS AND PUBLIC RIGHTS-OF-WAY; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISION THEREIN (“Franchise”);
WHEREAS, the initial term of the Franchise expired on July 9, 2016;
WHEREAS, Charter and the city are in negotiations for a new cable franchise agreement;
WHEREAS, the City and Charter desire to temporarily extend the term of the Franchise until the new cable franchise agreement terms can be negotiated, finalized, and approved via city ordinance;
WHEREAS, Minnesota law provides that after Franchise expiration the parties shall honor the current Franchise during negotiations for a successor cable franchise agreement.
THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to extend and administer the Franchise, Ordinance No. 9775, File No. 06-013-O, through and including July 1, 2017, or the effective date of a new cable franchise agreement with Charter approved via city ordinance, whichever date occurs sooner;
BE IT FURTHER RESOLVED that the proper city officials are hereby authorized and encouraged to negotiate a new cable franchise agreement with Charter to be approved via city ordinance and then published pursuant to Section 82 of the City Charter; and
BE IT FURTHER RESOLVED in granting this extension, the city does not waive any right under the Franchise or applicable law.
Statement of Purpose
STATEMENT OF PURPOSE: The City’s cable franchise with Charter Communications expired on July 9, 2016. The purpose of this resolution is acknowledge the extension of the current franchise agreement with Charter while a successor agreement can be reached. The parties are in negotiations; full proposals have been exchanged. Negotiations for a successor franchise agreement in 2016 were delayed by Charter due in part to its merger with Time Warner. Charter reconfigured its internal management structure related to franchise agreements in Minnesota. On December 15, 2016, the City’s new contact, Charter’s Director of Government Affairs, Tom Bordwell, acknowledged receipt of the City’s most-recent franchise agreement proposal, and indicated that he would respond “soon” on behalf of Charter in January of 2017. The goal of City staff is to negotiate a long-term cable franchise agreement.