HomeMy WebLinkAbout2.b. Cable Commission issues - Bob Vose ROSEN'KJI [NJ1T EXECU TIVE SUMMARY
CITY COUNCIL
City Council Work Session: December 9, 2014
AGENDA ITEM: Approval of ownership change and AGENDA SECTION:
franchise extension for cable television
-1Ji5tt)SSion
PREPARED BY: Alan Cox, Communications Coordinator AGENDA NO. 2.b.
ATTACHMENTS: None APPROVED BY:
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RECOMMENDED ACTION: Discussion
Following an extension approved by the City Council this summer,the franchise that allows Charter
Communications to offer cable television service in Rosemount will expire soon. There has been little
progress in negotiations for a new franchise,and the company has not offered a proposal. Charter
representatives last month told the Apple Valley-Farmington-Rosemount Cable Commission that it has
been impossible to move forward with local negotiations because of uncertainties regarding a possible new
alignment of cable service areas related to the merger of two other national companies, Comcast and
TimeWarner Cable. Charter's representatives say they believe the corporate-level uncertainties will be
resolved soon, allowing substantive negotiations to begin. Charter's attorney suggests a 12-month
franchise extension in the three communities.
The merger issues have also led Charter to file federal notice of an ownership change,which requires local
approval. The deadline for the cities to act is late this month. The Commission's attorney recommends
approval of the ownership change with provisions that would withdraw the approval if Charter and the
cities fail to resolve two potential franchise violations. The violations have to do with Charter's refusal to
cover the legal costs for the cities to review the ownership change, and with Charter's insistence that the
cities must pay monthly fees for converter boxes at government facilities needed to receive cable service
since Charter's conversion to digital distribution earlier this fall. The Commission contends that the
franchise currently in effect clearly requires Charter to pay the legal fees and to provide basic service to city
facilities without charge.
The Commission's attorney,Bob Vose, is scheduled to attend the Council's work session to discuss these
issues. Final action on the proposals regarding the ownership change and the franchise extension would
come at the Council's regular meeting December 16.