HomeMy WebLinkAbout6.h. Joint Cable Negotiation4ROSEMOUNT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting: October 18, 2011
AGENDA ITEM: Joint Cable Negotiation
AGENDA SECTION:
Consent
PREPARED BY: Emmy Foster, Assistant City
Administrator
AGENDA NO.
ATTACHMENTS: Joint Cable Negotiation Policy
APPROVED BY:
RECOMMENDED ACTION: Motion to Approve Policy to Jointly Negotiate Cable
Franchise Renewal through the Cable Commission, Select Kennedy & Graven as the
Legal Consultant, and Agree to Share the Costs Based on Cable Subscriber Rates with
the Other Partner Cities.
ISSUE
The Cities of Apple Valley, Farmington, and Rosemount each have nearly identical cable franchise
ordinances. The three cities worked jointly to negotiate the franchises prior to 1999 and then
formalized their partnership in a joint powers agreement when the franchises were approved in
1999. It is most cost effective for the administration of the franchises for them to be as identical as
possible.
The existing franchises will expire in 2014 and the typical franchise negotiation period is three
years. Both Farmington and Apple Valley have indicated a desire to jointly negotiate the franchise
renewals. Earlier this summer, the Apple Valley Telecommunications Advisory Committee
interviewed potential legal consultants to assist in the negotiations. The Committee's unanimous
recommendation was to retain the firm Kennedy & Graven, with the primary attorney Bob Vose.
Mr. Vose worked with Tom Creighton to negotiate the existing franchises in the late 1990's. In
addition, Mr. Vose is the attorney that the City of Rosemount uses with cable franchising issues.
The Committee believes that Kennedy & Graven offers the City the best value with considerable
franchising experience and the lowest estimated project costs. Mr. Vose was also very receptive to
joint negotiations with the other two cities. Initial indications are that Farmington, along with
Apple Valley, supports the selection of Kennedy & Graven as well.
The Commission has concluded that the existing joint powers agreement establishing the Cable
Commission gives the Commission authority to negotiate jointly for the franchise renewals on the
behalf of the member cities. As the negotiations would commence this year and the 2011 and
proposed 2012 Commission budgets do not include funds for franchise negotiations, the
Commission is presenting the attached policy document that would define the contributions
directly from each city based proportionately on the number of cable subscribers in each member
city from a date yet to be determined in this calendar year. This is the same general arrangement
used to negotiate the previous franchises in the 1990's.
SUMMARY
Staff recommends that the City Council approve the policy to jointly negotiate cable franchise
renewal through the Cable Commission, select Kennedy & Graven as the legal consultant, and
agree to share the costs based on cable subscriber rates with the other partner cities.
K
POLICY 2011-
COMMISSION ON CABLE AND TELECOMMUNICATIONS
ADVISORY BODY FOR THE ADMINISTRATION
OF THE CABLE COMMUNICATIONS SYSTEM,
THE COMMUNITY TELEVISION OPERATIONS,
AND THE TELECOMMUNICATIONS
ACTIVITIES AND ISSUES
This Policy is made this day of , 2011 by the Joint
Cooperative Cable and Telecommunications for the cities of Apple Valley, Farmington and
Rosemount (collectively referred to as the "Cities ").
WHEREAS, the Commission is charged with the responsibility of negotiating a renewal
franchise or a new franchise on behalf of the member Cities; and
WHEREAS, the Commission is uniquely qualified and suited to negotiate a renewal or
new franchise;
WHEREAS, the Commission has individually and collectively consulted with the law
firm of Kennedy & Graven, P.A. ( "K &G ") regarding renewal of the cable franchises of the
Cities; and
WHEREAS, K &G has indicated a willingness to represent the Commission and the
Cities and assist negotiation of the franchise with the Commission; and
WHEREAS, the Cities wish to share the franchise renewal cost on a per- subscriber basis.
NOW, THEREFORE, the Commission establishes this Policy 2011- as
follows:
1. The Member Cities will provide and share the costs associated with renewal of their
respective franchises, including the costs of representation by K &G, in proportion to
the comparative number of subscribers in each of the Cities on ,
201_. K &G will invoice the City of Apple Valley for its representation and the
cities of Farmington and Rosemount will reimburse Apple Valley their respective
proportionate share. Any legal representation provided solely to an individual city
(i.e. attendance at individual council meetings) will be invoiced directly to that city
by K &G.
2. The Cities or the Commission may, at any time, terminate representation by K &G
and collectively or individually retain different legal counsel regarding cable
franchise renewal or related issues.
3. The Commission shall forward its recommendation on cable franchise renewal or
change to the Member Cities for approval.
COMMISSION MEMBERS:
APPLE VALLEY
By:
By:
Date:
ROSEMOUNT
By:
Date:
CITY OF APPLE VALLEY
By:
Mary Hamann- Roland
Its: Mayor
By:
Pamela J. Gackstetter
Its: City Clerk
CITY OF ROSEMOUNT
By:
William Droste
Its: Mayor
By:
Amy Domeier
Its: City Clerk
FARMINGTON
Date:
CITY OF FARMINGTON
By:
Todd Larson
Its: Mayor
By:
David McKnight
Its: City Clerk