VII.4. First Reading Ordinance Extending the Term of the Franchise held by Comcast of Minnesota, Inc.; LenzAugust 1, 2022 Council Report 2022-067
First Reading of Ordinance Extending the Term of the Franchise held by Comcast of
Minnesota, Inc.
Proposed Action
The Southwest Cable Commission is in the process of negotiating a renewal with Comcast for
our franchise agreement. The existing franchise agreement expired on August 1, 2022. Until a
new agreement is finalized, Staff recommends extending the existing franchise agreement.
Staff recommends that the Council approve the following motion: Approve First Reading of
Ordinance 2022-1182 extending the Term of the Franchise Held by Comcast of Minnesota, Inc.
Overview
Each member city adopted a cable franchise in 2012 which granted Comcast a 10 year franchise
with an effective date of August 1, 2012. Due to delays finalizing the Needs Assessment Report
and related matters, negotiations of the renewed franchise will obviously not be completed
before the existing franchise expires on August 1, 2022. Expiration of an existing cable
franchise during renewal proceedings is not unusual for cable commission franchise renewals nor
is it unusual in the cable industry.
Even if the member cities took no action to extend the existing franchise, the Comcast franchise
would remain in place, Comcast would continue to have authority to operate, and Comcast
would be required to remit applicable fees to each city. That is because federal law provides that
cable franchises remains effective until a city denies a franchise renewal request under 47 USC
546. However, best practice is to grant the extension of the franchise.
The Southwest Cable Commission Joint Powers Agreement does not provide the Commission
with authority to amend a city ordinance (even if just to extend the franchise term). As a result,
the Commission cannot address this issue via Commission action. Each member city needs to
adopt the extension.
Supporting Information
Ordinance 2022-1182
Ari Lenz
Assistant City Manager
CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2022-1182
AN ORDINANCE EXTENDING THE TERM OF THE FRANCHISE
HELD BY COMCAST OF MINNESOTA, INC.
THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AND
FOLLOWS:
WHEREAS, on or about July 17, 2012, the City of Hopkins, Minnesota (“City”) granted
a cable television franchise pursuant to Ordinance No. 2012-1051 (“Franchise”) which is
currently held by Comcast of Minnesota, Inc. (“Comcast”); and
WHEREAS, the City and Comcast, pursuant to 47 U.S.C. §546(h), are currently
conducting informal franchise renewal negotiations in an attempt to reach mutually acceptable
terms for franchise renewal; and
WHEREAS, both the City and Comcast are interested in continuing informal renewal
negotiations and desire to extend the Franchise term from August 1, 2022, to January 31, 2023;
and
WHEREAS, the City and Comcast have determined that an extension of the Franchise
term is reasonable and in the best interest of the City, and its residents, to ensure uninterrupted
cable television services; and
WHEREAS, both the City and Comcast desire to expressly reserve all of their respective
rights under state and federal law; and
WHEREAS, the City and Comcast continue to be governed by the formal renewal
process pursuant to 47 U.S.C. §546(a-g) and nothing contained herein shall in anyway diminish
either party’s rights under the formal renewal process.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HOPKINS,
MINNESOTA HEREBY ORDAINS:
1. The Franchise is hereby amended by extending the term of the Franchise from
August 1, 2022, through January 31, 2023.
2. Except as specifically modified hereby, the Franchise shall remain in full force
and effect.
3. This Ordinance shall become effective upon adoption by the City and acceptance
by Comcast.
Adopted by the City Council of the City of Hopkins, Minnesota this 16th day of August
2022.
CITY OF HOPKINS, MINNESOTA
By:
Patrick Hanlon, Mayor
ATTEST:
_________________________________
Amy Domeier, City Clerk
ACCEPTANCE
Comcast of Minnesota, Inc. hereby accepts this Ordinance and agrees to be bound by the
terms and conditions of the Franchise, as amended.
COMCAST OF MINNESOTA, INC.
By:
Its: