01-14-1998 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Fahey and Members of the City Council FROM: Kathy Glanzer, Deputy Clerk RE: Ordinance Extending Cable TV Franchise Term MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morel= Bob Pedersen ADMINIS172ATOR Joel R. Hanson Attached are correspondence and an ordinance from Tom Creighton, attorney for the Cable Commission, extending the cable franchise an additional 90 days. It is hoped that negotiation of the franchise documents can be completed within that time frame. As you are aware these negotiations have been slow given the transfer of ownership issue which has been occurring simultaneously. With regard to the transfer of ownership, the Cable Commission approved the transfer of ownership of the cable franchise from U.S. West to Charter Communications at its meeting last evening. Charter has satisfied all of the requirements that were imposed. The individual cities will be asked to amend their franchise agreements once the closing on the sale occurs. At this point the issue of the sale of the system lies with U.S. West and Charter Communications. Remember U.S. West has petitioned the FCC to extend the time period that they can own the system. As I mentioned in an earlier memo, U.S. West would like to spin off a new company which would become the owner of the system. U.S. West has offered Charter $30 million in liquidated damages if they will withdraw from the purchase agreement. The Cable Commission, Charter Communications, the Minnesota Department of Public Service, and the Consumer Federation of America have made filings with the FCC opposing this extension. At this point staff's recommendation is that the Council adopt the ordinance extending the current franchise for an additional 90 days. Page 23