City Council Regular


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  Item Number 8.5.       
Meeting Date: 09/07/2021  
ITEM TITLE:    Cable franchise agreement renewal.
Department: Administration  
REQUESTED BY: Caroline Gregerson

PURPOSE:
ITEM SUMMARY:
In 2003, the City of Wabasha signed a franchise agreement with US Cable for the operation of a cable communication system. The City collected 3% of annual subscriber revenues. (Agreement attached). This agreement was assigned to Midcontinent in 2011 at the time of their acquisition. In 2008, the City of Wabasha extended its franchise agreement from May 7, 2011, to expire in May 7, 2021. (Agreement attached). Now the City of Wabasha is being presented a new agreement, that would extend the current agreement for 10 years.  Finance is happy with the timely payments of the fees. We have budgeted for $56,000 for the year and are paid monthly ($28,575) to date. No other concerns have been expressed by staff about their operations. City Administrator Gregerson has been in contact with Midcontinent staff regarding the proposed agreement and they will redraft the orginally submitted "Ordinance" to become a "Resolution".  City Administrator Gregerson negotiated with Midcontinent to change language in the resolution to state that any changes in the franchise fee would require prior approval from City Council. The franchise fee amount remains the same. 

The 3% franchise fee is not changing in this proposed renewal. The alternative would be for staff to conduct an internal review by comparing the documents and noting any changes. The representative of the cable company is indicating that nothing is changing, the purpose is to bring the documents up to date and also extend the franchise dates. 
ACTION REQUIRED:
Motion to approve the Resolution 24-2021 for extending the Cable Franchise for 10 years. 
Attachments
2003 Franchise Agreement
2008 Renewal Agreement
2011 Consent to Midco Assignment
2021 Proposed Renewal
Resolution 24-2021


    

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