CR 01-67 Rescinding Approval of First Reading of Cable Franchise
June 5, 2001
Council Report 2001-67
Rescinding Approval of First Reading of
Cable Franchise for Everest Minnesota, LLC
Proposed Action
Staff recommends adoption of the following motion: Approve Resolution 2001-35 Rescinding
Approval of First Reading of Ordinance 2001-849.
This action will end the process of awarding a cable franchise in the City of Hopkins to Everest
Minnesota, LLC.
Overview
The City of Hopkins, along with the other four cities of the Southwest Suburban Cable Commission
went through the process of granting new cable franchises during the last year. The City Council
approved Ordinance 2201-849 for first reading granting a franchise ordinance for Everest Minnesota,
LLC.
Negotiations regarding the City's right-of-way delayed the second reading of the Ordinance. On March
9, 2001, the City received a written letter from Michael L. Deggendorf, on behalf of Everest, informing
the City of Everest's inability to accept the Ordinance granting a Franchise due to adverse market
conditions.
The Commission has recommended that cities, which have adopted franchise ordinances, rescind or
repeal these ordinances. Although the City of Hopkins did not complete the franchising process for
Everest, it should be made clear that Ordinance 2001-849 is not going to be approved and that Everest
will have to go through the complete process again should they seek a new franchise.
This action is recommended because conditions may change if and when they return to this area. The
City should retain the option to negotiate different terms and conditions in a new franchise.
Supporting Information
. Resolution 2001-35
es Genellie
ssistant City Manager
Financial Impact: $ None Budgeted: Y/N
Related Documents (CIP, ERP, etc.):
Notes:
Source:
Resolution 2001-35
Rescinding Approval of First Reading of
Cable Communications Franchise Ordinance
- Everest Minnesota, LLC
WHEREAS, in April 2000, Everest Minnesota, LLC ("Everest") requested that the City of
Hopkins, Minnesota ("City") commence proceedings under Minn. Stat. ~238.081
to consider the grant of a cable television franchise ("Franchise") to Everest; and
WHEREAS, in response to Everest's request, the City undertook all necessary steps
required by Minn. Stat. ~238.081 to consider the grant of a Franchise; and
WHEREAS, in accordance with Minn. Stat. ~238.081 subd. 6, the City conducted a
public hearing and adopted a resolution determining that Everest possessed the
requisite legal, technical and financial qualifications to operate a cable television
system within the City; and
WHEREAS, the City and Everest subsequently conducted negotiations regarding
acceptable terms and conditions for a Franchise; and
WHEREAS, on January 2, 2001, the City approved Ordinance 2001-849 for first reading
granting Everest a Franchise to own and operate a cable system within the City
subject to acceptance by Everest; and
WHEREAS, on March 9, 2001, the City received a written letter from Michael L.
Deggendorf on behalf of Everest informing the City of Everest's inability to accept
the Ordinance granting a Franchise due to adverse market conditions.
NOW THEREFORE, the City Council of the City of Hopkins, Minnesota hereby resolves
as follows:
The City Council's approval of the first reading of Ordinance 2001-849, which would
have granted a Franchise to Everest, is hereby rescinded in its entirety.
The process undertaken by the City pursuant to Minn. Stat. ~ 238.081 is hereby
completed as it relates to Everest's request for a Franchise. No further action will be
taken on Ordinance No. 2001-849 and such Ordinance shall not be adopted by the City
Council.
I n the event Everest should again seek a Franchise from the City it must reinitiate the
statutory procedure required under Minn. Stat. ~ 238.081, as well as negotiate with the
City mutually acceptable terms and conditions for a new Franchise.
PASSED AND ADOPTED this 5th day of June 2001:
CITY OF HOPKINS, MINNESOTA
By:
Mayor
ATTEST:
By:
City Clerk
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