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CR 12-029 Resolution Extending Cable Franchise AgreementApril 3, 2012 M Council Report 2012-029 RESOLUTION EXTENDING CABLE FRANCHISE AGREEMENT Proposed Action Staff recommends adoption of the following motion: Move to Approve Resolution 2012-018 Extending the Current Cable Franchise with Comcast. This motion extends the term of the Franchise from April 17, 2012 through and including July 31, 2012. Overview The Southwest Suburban Cable Commission ("Commission"), of which Hopkins is a member, and Comcast have been in negotiations for a year regarding the renewal of the Cable Franchise which had been scheduled to expire on January 1, 2012. In November 2011 the Commission cities, in an effort to provide additional time to the negotiating teams, extended the term of the Franchise through April 17, 2012. The attached Extension Resolution is needed to provide additional time to complete drafting a new cable franchise. Throughout 2011 Comcast and the Commission have been engaged in negotiations to reach agreement on a new franchise. While the general provisions of the model franchise have been discussed, the focus of the negotiations have been on public,educational and governmental ("PEG") issues. The PEG issues include: 1) channel capacity; 2) connectivity between schools and City facilities; 3) equipment/studio needs; and 4) PEG capital funding. The parties most recently exchanged written proposals and agreement appears to be close on the key financial provisions. While a number of open issues must still be resolved, the Commission now anticipates that franchise renewal negotiations may be complete in May 2012. The Commission's negotiating Team recommends that each member city adopt the attached Extension Resolution granting Comcast the right to continue operating the cable system pursuant to the existing Franchise through July 31, 2012. Supporting Information • Resolution 2012-018, Approving the extension of the Franchise Z. az( A ames Genellie Assistant City Manager RESOLUTION NO. 2012-018 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOPKINS, MINNESOTA GRANTING COMCAST OF ARKANSAS / FLORIDA / LOUISIANA / MINNESOTA / MISSISSIPPI / TENNESSEE, INC. A FRANCHISE EXTENSION TO JULY 31, 2012 WHEREAS, effective January 1, 1997, the City of Hopkins, Minnesota ("City") granted a Cable Television Franchise Agreement ("Franchise") to Time Warner Cable, Inc.; and WHEREAS, the Franchise is currently held by Comcast of Arkansas / Florida / Louisiana / Minnesota / Mississippi / Tennessee, Inc. ("Comcast"); and WHEREAS, the City adopted Resolution No. 2011-059 on November 15, 2011 extending the term of the Franchise, as amended by the Resolution; and WHEREAS, Comcast executed said Resolution No. 2011-059 and agreed to continue complying with the Franchise, as amended by the Resolution; 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 a mutually acceptable terms for franchise renewal; and WHEREAS, the City and Comcast are interested in continuing informal renewal negotiations and desire to extend the current Franchise term from April 17, 2012 to July 31, 2012; 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 resolves as follows: I The Franchise is hereby amended by extending the term of the Franchise from April 17, 2012 through and including July 31, 2012. 2. Except as specifically modified hereby, the Franchise shall remain in full force and effect. 3. The City and Comcast 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 following conditions: (1) The Resolution being passed and adopted.by the City Council of the City of Hopkins; and (2) Comcast's acceptance of this Resolution. Adopted by the City Council of Hopkins, Minnesota, this 3rd day of April , 2012. CITY OF HOPKINS, MINNESOTA By: Its: ATTEST: City Clerk ACCEPTANCE Comcast of Arkansas / Florida / Louisiana / Minnesota / Mississippi / Tennessee, Inc. hereby acknowledges the City of Hopkins, Minnesota 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: COMCAST OF ARKANSAS/FLORIDA/ LOUISIANA/MINNESOTA/ MISSISSIPPI / TENNESSEE, INC. By: Its: Sworn to before me this day of , Notary Public