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RESOLUTION AUTHORIZING CABLE TELEVISION FRANCHISE EXTENSION AGREEMENT WITH CHARTER COMMUNICATIONS THROUGH DECEMBER 31, 2017.
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CITY PROPOSAL:
WHEREAS, CC VIII Operating, LLC, d/b/a Charter Communications currently holds a cable television franchise agreement with the City of Duluth, Minnesota (the “City”), pursuant to city Ordinance No. 9775, File No. 06-013-O (“Franchise”); and
WHEREAS, the Franchise also permits Charter Communications to utilize its cables to provide internet services;
WHEREAS, Charter Communications’ Franchise with the City expired on July 9, 2016; and
WHEREAS, Charter Communications’ timely filed a request for renewal of the Franchise under Section 626 of the Cable Act (47 U.S.C. 546); and
WHEREAS, the city and Charter continue to reserve all rights under the formal procedures of Section 626 of the Cable Act and do not waive any rights related thereto; and
WHEREAS, it is in the public interest to extend the current Franchise for an additional period of time so that cable service to the public will not be interrupted.
RESOLVED, the proper City officials are hereby authorized to execute the Franchise Extension Agreement, attached hereto as Exhibit A, and execute any related documents necessary to extend the Franchise through the date on which Charter Communications’ Franchise is either renewed or until the end of the day on December 31, 2017, whichever occurs first.
BE IT FURTHER RESOLVED that the proper city officials are hereby authorized and encouraged to negotiate a new cable franchise agreement with Charter Communications 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 rights 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 Communications while a successor agreement can be reached. The continuing goal of City staff is to negotiate a long-term cable franchise agreement. However, negotiations for a successor franchise agreement from 2016 to now have been delayed by Charter Communications due in part to its merger with Time Warner; they reconfigured their internal management structure related to franchise agreements in Minnesota.
The City has not caused any delay in the renewal process. The City sent a complete franchise renewal proposal to Charter Communications in 2016. We were recently informed at the 2017 Minnesota Association of Telecommunications Administrators Annual Conference that Charter has not negotiated renewal terms with any Minnesota cities in 2017.