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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: nal 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.